Northern Ireland Assembly Flax Flower Logo

Northern Ireland Assembly

Monday 25 February 2002 (continued)

Mr Speaker:

Order. It is in order for me to point out that the Member did refer earlier to how Members should deal with other Members. I simply draw that to his attention without further comment.

Mr P Robinson:

If I get to a personal attack on Mr Trimble, I can assure you, Mr Speaker, that he will know it.

Reference was also made to Castlereagh Borough Council. No area in Northern Ireland has benefited more from the policies that have been pursued by my colleagues there and me. The net value to Castlereagh Borough Council can be seen in its rates bills every year. No cheap and nasty politics from Mr Dalton will dent the council's continued faith in the policies that I have pursued in that area.

In the short time that I have used up, I have attempted to show that the remarks made in the 'News Letter', and repeated in the House today, are a total fabrication. They are the work of the dirty tricks department at Glengall Street, and they will be judged as such by the general public. Even at this stage, I am willing to give way if the Member wants to stand over any of the comments that he has made, but I see that he is making no move to do so. That simply shows the utter discredit of any remarks that he has made.

Mr Speaker:

I call Mr Francie Molloy. Mr Molloy will have to bear with an interruption for Question Time, but there is no reason for his not continuing afterwards, if he needs the time.

The Chairperson of the Committee for Finance and Personnel (Mr Molloy):

Go raibh maith agat, a Cheann Comhairle. I wish to make my contribution in two parts. First, I will speak as the Chairperson of the Committee for Finance and Personnel and afterwards as a private Member.

On behalf of the Committee, I welcome the opportunity to debate the review of public administration. The Committee is glad that the review is being initiated as outlined in the Programme for Government, and it is supportive of the need to consider all aspects of the public service to ensure that services are delivered in the most effective, efficient and economical way. The Committee also endorses the approach taken to ensure that the views of MLAs, Committees and other interested bodies are sought before the terms of reference are confirmed. However, we do need to move on.

(Mr Deputy Speaker [Mr McClelland] in the Chair)

In any review of this magnitude, the terms of reference are important to ensure that the exercise considers the wide remit and is not restricted in the options for reform that will be considered in the future. A fine balance must, therefore, be struck between being too specific or too general in the terms of reference.

On a general point, the scope of the review as it currently reads is extensive and will generate a large amount of work, which is likely to be contentious in many parts. A clear plan is needed to manage and deliver the programme of activity involved. The Committee is concerned to ensure that representatives from the Departments and the Committees are involved in all stages of the process.

The Committee believes that the review of public administration should commence, but it is also aware that the accommodation review and many other reviews are ongoing. Members are keen to see the accommodation review being moved forward, but it should not prejudice or prejudge the outcome of the review of public administration. The Department of Finance and Personnel is responsible for several Next Steps agencies, some of which are undergoing reviews and examining options for their future status. The Committee would like some consideration to be given to immediate and short-term activity on the agencies' status, which might be connected directly to the review of public administration.

The terms of reference show that this could be costly. The Committee believes that the costs of the exercise and any implementation plans should be made known to the Assembly, and the Assembly should be able to respond to them.

I want to distance my next comments from my position as Chairperson of the Committee for Finance and Personnel. Speaking as a Member for Mid Ulster and west of the Bann, I want to restate the need for an urgent review and rebalancing of the services of local government, Government jobs, economic development and structures across the different levels of administration. There is a need to see this review in terms of the Hayes review, the Burns review, the review of Civil Service jobs and the reallocation of jobs. To achieve greater democracy and accountability, we must ensure that power is located in local government. If that is going to happen, and if we are going to see more powers -

Mr Deputy Speaker:

Mr Molloy, I regret having to stop you in midstream. You will have the opportunity to speak again later.

2.30 pm

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Oral Answers to Questions

Enterprise, Trade and Investment

Mr Deputy Speaker:

Question 8 has been withdrawn and will receive a written answer.

Fujitsu Funding

1.

Mr Maskey

asked the Minister of Enterprise, Trade and Investment how much of the funding promised to Fujitsu, in letters of offer in 1994 and 1996, totalling £1·7 million and £2·9 million for its Springvale site project, was taken up by the company.

(AQO 902/01)

The Minister of Enterprise, Trade and Investment (Sir Reg Empey):

As Fujitsu and Trivirex are currently negotiating a takeover of the Springvale factory, it would be prejudicial to future employment prospects on the site if I were to make public the amounts of grants paid. Those matters are commercially sensitive at this time.

Mr Maskey:

I appreciate the sensitivities. Given that response from the Minister, he may not be able to answer my supplementary question either. Is there any need for clawback on any moneys that have been awarded or offered to the company?

Sir Reg Empey:

That is an understandable question. However, the commercial arrangements between the companies are still being negotiated, and those aspects are sensitive. I understand that Fujitsu could agree to continue to place levels of manufacturing with the Springvale facility to ensure its continued operation, so that there would be no redundancies until the new owners can progressively transfer in their own work.

There are a variety of possible combinations of events, and we are conscious of clawback issues arising in those situations. The question of what assets remain - plant, machinery, and so on - is still under determination. Due diligence is under way, and it will be a few weeks yet before we know the final outcome.

Despite my regret at the Fujitsu decision, the outcome may not be negative for the Springvale site. I regret that I am unable to give the Member a fuller response at this stage, and I hope he understands the sensitivities of ongoing negotiations.

Promotion of Northern Ireland

2.

Mr Poots

asked the Minister of Enterprise, Trade and Investment what steps have been taken to promote Northern Ireland as an investment location in Europe.

(AQO 898/01)

Sir Reg Empey:

In January 2001, Mr David Trimble, Mr Séamus Mallon and myself launched IDB's European marketing campaign at events in Paris, Düsseldorf and Berlin. The objective was to raise the profile of Northern Ireland as an attractive location for investment. Despite the global economic downturn, IDB continues to build on contacts made then and has appointed a new sales representative in Brussels.

Mr Poots:

I was aware of the launch; that is why I asked the question. What opportunities have been developed for local companies to create linkages with other similar businesses in Europe to improve efficiency, development and marketing opportunities?

Sir Reg Empey:

In addition to our office in Düsseldorf, we have a representative based in Brussels who looks after the Low Countries and also has a role in France. We have an office in the British Embassy in Paris that we can use from time to time to promote events. The European market is crucial, and inward investors to Northern Ireland are frequently attracted on the basis that we are part of the European Union, with access to that huge market.

There are opportunities. However, while we have had some successes in software in the last year or so in Germany, the currency issue is a difficulty.

We do not have to give up because the current climate is negative. We must put in the groundwork to ensure that we continue to get a flow of inward investment. On a positive note, Trade International, the international trading arm of IDB, continues to lead missions and attend exhibitions in Europe. Those have been successful, well attended and supported by the business community, and we consider Europe to be one of our main areas for economic activity for the future.

Consultation Documents - Cost

3.

Mr Close

asked the Minister of Enterprise, Trade and Investment to detail the cost of producing documents for consultation in the past three years, including preparation, printing, distribution and all ancillary costs.

(AQO 882/01)

Sir Reg Empey:

As the Member's question requires a considerable co-ordination exercise across my Department and its agencies, I am not yet in a position to provide the information that he seeks. I shall, therefore, with the Member's forbearance, provide the information by way of a written answer.

Mr Close:

I accept the Minister's reply. I am pleased that he has given the question the care and consideration that it requires. As he is taking more time and will be replying in writing, will he also give consideration to any cost benefit analysis on the expenditure of the money? Will he also make it clear that the money thus spent is used, in his view, more beneficially than, for example, the expenditure on hip replacements or coronary care?

Sir Reg Empey:

I understand and have listened carefully to the views of several Members in recent weeks about the costs and time involved in consultation exercises. Some of them are subject to statutory requirement. I share the frustration of some Members. We may have got the balance wrong somewhat, but the Member will be the first to acknowledge that we come from an era in which consultation meant nothing. It was a play-acting exercise, where councillors would be asked what they thought, knowing that the legislation was already written. There was a façade of consultation under direct rule. Therefore, I suppose that there is a natural reaction to that. If the Member has been on planning committees he will know what I mean - they were a joke. However, the fact remains that people are entitled to be consulted on matters that affect them, regardless of the legalities. As citizens, they are entitled to have a view and an input. What remains to be seen is whether we have tipped the balance too much the other way.

I think that we have, but I am sure that the Office of the First Minister and the Deputy First Minister is looking at those matters, and I have no doubt that Members of the House will return to the issue. I apologise to the Member for being unable to give him precise figures, but I could not guarantee their accuracy if I were to give them to him today. I hope that when we have received responses from our different agencies I shall be able to provide him with accurate information.

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Sperrins - Tourism Strategy

4.

Mr McElduff

asked the Minister of Enterprise, Trade and Investment to detail his strategy for developing the tourism potential of the Sperrins; and to make a statement.

(AQO 864/01)

Sir Reg Empey:

Sperrins Tourism Ltd is a partnership of tourism interests that represents all sectors. It plays a co-ordinating role and is committed to maximising the natural resources of the unspoilt environment, including that in the Sperrins. In 2001-02, the Northern Ireland Tourist Board provided the company with funding for marketing activity to promote tourism and production in the area.

Mr McElduff:

Go raibh maith agat, a LeasCheann Comhairle. Gabhaim mo bhuíochas leis an Aire as a fhreagra. I thank the Minister for his answer. Does he agree that the Sperrins' potential is as yet unrealised? The area is relatively undiscovered and is a superb area for fishing, walking, cycling and cultural activities. Will the Minister work with Mr McGimpsey and Dr Jim McDaid TD to look at how the cultural heritage of Glencolumbkille in Donegal has been marketed for tourism purposes, and reflect that in the Glenelly valley, especially in the western Sperrins, where the Irish language was spoken until the 1950s?

Sir Reg Empey:

The Member has raised some matters, which, as he conceded, are not relevant to my Department. However, I am conscious of the Sperrins' potential. Since 1989, the Sperrins area has received approximately £7 million from the Northern Ireland Tourist Board. That amount has come in the form of financial assistance towards capital infrastructure and support for marketing activities. As the Member rightly says, the Sperrins have a fantastic product to offer for angling, walking and cycling. If the Member is suggesting the development of cultural tourism, he will find a receptive ear in my Department. Cultural tourism is developing across Europe, and Northern Ireland with its historical and cultural events is uniquely placed to benefit from that.

I am in regular contact with Dr McDaid. We work closely together with regard to Tourism Ireland and marketing. Cultural tourism has resonance with some of the markets that we wish to attract. I will ensure that officials draw that matter to the attention of my Colleague Mr McGimpsey, the Minister of Culture, Arts and Leisure.

Mr McMenamin:

Last year was a disaster for all aspects of tourism, and the forecast for 2002-03 is not much more hopeful. Does the Minister agree that there is a need for public funding to sustain the tourist infrastructure in the Sperrins and to publicise the region much more aggressively?

Sir Reg Empey:

The truth is that one can never market any region enough. However, local authorities and the regional tourism organisation, which is funded by the Tourist Board, are very proactive. Recently, a new hotel opened in Maghera. That has been a major boost to that area, which was hard hit last year by foot-and-mouth disease. Rural-based and natural-resource- based tourism products such as walking and cycling were banned for months. It has taken a long time to recover, but I am thankful that that plague is behind us. I do not dispute the Member's main point that much damage was done, that people lost revenue, that that has held back investment and that, as a result, some businesses have been struggling to survive. However, there is strong partnership in the area - Magherafelt District Council was deeply involved. I visited the area and spoke to the people involved, and I did not detect any tailing off of enthusiasm among those who were most directly affected. They know that they have a good product, which, if marketed successfully, will ultimately bring economic regeneration into the area.

Tourist Board - Audit Report

5.

Mr Dallat

asked the Minister of Enterprise, Trade and Investment when the accounting officer of his Department will be in a position to publish the most recent audit report on the Northern Ireland Tourist Board.

(AQO 885/01)

Sir Reg Empey:

The Department signed off the report on 13 December 2001. Subsequently, the Northern Ireland Audit Office received comments from other parties and, in the light of further revisions to the text, correctly invited the Northern Ireland Tourist Board to reconsider the draft in January and again on 6 February. The Northern Ireland Tourist Board responded finally to the issues on 14 February 2002.

Mr Dallat:

I fully understand the importance of having accurate facts in the Northern Ireland Audit Office reports, but the Minister will understand - [Interruption].

Mr Deputy Speaker:

Order.

Mr Dallat:

My constituency of East Londonderry has a high dependency on tourism. I have a particular interest in the Tourist Board and how it functions. Will the Minister confirm that whatever action is needed as a result of the Audit Office report, which is published tomorrow, will be taken immediately? Members must have confidence that taxpayers' money is being properly controlled in the Tourist Board and used efficiently for the promotion of tourism.

Sir Reg Empey:

The Member should not assume that I wait for a report before I take action. Many of the issues raised in the report - which are serious, and which I take seriously - were identified by the Tourist Board itself. Many were identified by our own internal audit procedures before the Audit Office became involved. In many cases action was taken some time ago.

However, that does not relieve us of the obligation to be continuously vigilant. To an extent, I am restricted in the response that I can make to the Member. It is appropriate for the hearing to take place first, as I may be called upon to make further statements at that stage, and I believe that those are better made to the House initially, rather than to the media.

2.45 pm

Mr Kennedy:

Does the Minister view it as somewhat odd, and as a matter of grave concern, that, despite being personally cleared by the Audit Office, the chairman of the Northern Ireland Tourist Board continues to be the subject of a political witch-hunt led by leading members of the SDLP?

Sir Reg Empey:

I have great sympathy for the chairman of the Northern Ireland Tourist Board. When Mr Bailie was appointed to the post by my Department some years ago, it was well known that he was a supplier of printed materials to the board. If I understand it correctly, the amount of business that he did with the board was greater prior to his appointment as chairman than subsequent to it, and I made that point to the Assembly when the issue first arose last year.

It is also important to note that the Comptroller and Auditor General, Mr Dowdall, has accepted that the chairman did not influence contracts, and he also made it clear that he believes that it is important to make the point that W&G Baird Ltd was not the only company to benefit from poor procedures within the Tourist Board. When making his initial comments, Mr Dowdall indicated that he accepted the assurance of my Department that the chairman acted entirely properly in all matters in relation to Northern Ireland Tourist Board procurement decisions. It has, therefore, been a matter of regret to me that the chairman has been singled out and has had to defend himself against allegations that were not true.

Clearly there have been procedural failures, and there is no doubt of that. If any matter is drawn to my attention that requires action to be taken to ensure that taxpayers' money is properly and adequately spent and accounted for, I will not be slow to take those actions. My Department has been told, from the top down, that I expect this matter to be resolved satisfactorily, so the Member can be assured of that. However, it is important to make the point that the individual concerned, who has been caught in the crossfire, should not be personally pilloried or have his reputation damaged. I am not in possession of any information that would lead me to the conclusion that he was culpable, and the auditor has clearly exonerated him in reports that have been drawn to my attention.

Mr Shannon:

The Minister has stated that the Northern Ireland Audit Office is making an announcement in relation to the Northern Ireland Tourist Board. Is the Minister aware of a television programme to be screened tonight that will specifically feature the audit report? What input has the Minister had, if any, to that programme?

Sir Reg Empey:

I am aware that a programme will be screened tomorrow night. It has been in preparation for some weeks, and I was invited to appear on it. However, due to the difficulties and restrictions of protocol in the handling of Public Accounts Committee reports, I have been unable to appear on the programme. I have, however, issued a statement, and I understand that the Northern Ireland Tourist Board is doing the same. The Member will forgive me if I am not able to respond as fully as I would like, but I have to restrain myself until such times as the Assembly deals with the report. A formal hearing is to take place in May in front of the Public Accounts Committee, and I will have the opportunity, subsequent to that, to make my position clear. However, I believe the facts, as the Member states them, are correct.

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Design and Manufacturing Capability

6.

Mrs I Robinson

asked the Minister of Enterprise, Trade and Investment, pursuant to AQW 645/01, to clarify (a) the number of employees needed to constitute a strong design and manufacturing capability; and (b) to give a commitment to retain this workforce.

(AQO 865/01)

Sir Reg Empey:

It is a matter for the company to judge what it needs in design and manufacturing capability in order to compete effectively for aircraft projects. I am not in a position to give a commitment that jobs will be retained. I have, however, received assurances that Bombardier is committed to retaining a strong design and engineering capability in Belfast. IDB will ensure that that is taken into account when negotiating packages of selective financial assistance.

Mrs I Robinson:

Will the Minister confirm that, as technology improves and business practices become more efficient, the size of the design team employed by Bombardier Shorts in Northern Ireland may decrease, and that future reduction in the numbers of those employed in the design and engineering sector of the company will not necessarily reflect a desire to wind up those interests in Northern Ireland?

Sir Reg Empey:

I am conscious of Mrs Robinson's interest in the matter. She is not alone; I have had representations from trade unions, other elected representatives and local authorities.

It is clear that technology makes a difference to design. When I visited the headquarters of Bombardier in Montreal before Christmas, I drew the senior management's attention to my concern that adequate facilities should exist in Belfast to deal with the design and engineering capability. IDB believes, as do I, that having the capacity to tender and design the product within the group is a critical issue to obtaining future work. I know that the trade unions are very concerned. My understanding is that there are no future plans to reduce that capacity in the company, and I can assure the Member that when I meet with management, locally or internationally, the point is emphasised at every opportunity.

I can also assure the Member that in any of its negotiations with regard to future packages, IDB is taking the situation into account. IDB is continuously emphasising to the company that if it became clear to us that any withdrawal or significant reduction in capability were to take place, that would colour its judgement as to any future financial assistance it would be prepared to offer.

Dr McDonnell:

In general terms, does the Minister agree that a full economic recovery will take place only if it is grounded in the knowledge-based economy? In that area, our spend is less than half that of the UK.

Mr Deputy Speaker:

The supplementary must be based on the question in the Order Paper. It is unclear as to how the Member's question is related to question 6.

Dr McDonnell:

The question is related to design and manufacturing R&D spend.

Mr Deputy Speaker:

You may proceed.

Dr McDonnell:

What initiatives does the Minister plan to take to bring R&D spend, whether private or public, up to UK levels?

Sir Reg Empey:

I am aware of the difference between our R&D spend and that of our competitors. The Member will be aware that there is a commitment in the Programme for Government on that subject. My Colleague, the Minister for Employment and Learning, her predecessor and myself have been working hard on the matter. Before Christmas we had meetings with the vice chancellors of the universities. We have had ongoing dialogue with other Government Departments where there is a significant public-sector R&D involvement.

One of our industrial development policies is to identify companies without an R&D capability and to encourage them. We are trying to encourage inward investors, as well as indigenous investors who are reinvesting, to go for an R&D capability. We are skewing our financial assistance in favour of those companies, as there is greater potential for the stability and longevity of an enterprise here if it has a significant R&D commitment.

The Member knows that only too well. I take the issue seriously, and my Department tries to configure its expenditure in that way. The Executive Members are working together at departmental level to ensure that we increase the figures to a reasonable level in compliance with the commitments made in the Programme for Government.

Development of Tourist Facilities

7.

Mr McGrady

asked the Minister of Enterprise, Trade and Investment what financial resources will be invested in the development of tourist facilities; and to make a statement.

(AQO 868/01)

Sir Reg Empey:

My Department and its agencies administer several programmes for the development of tourist facilities. Over the next three years approximately £18 million should be available under the tourism development scheme, the EU Peace II programme and the International Fund for Ireland (IFI).

Mr McGrady:

The Minister referred to £18 million of funding coming from Europe to the Northern Ireland Tourist Board, which should be added to the £57 million of European funding that has been allocated to the Department of Enterprise, Trade and Investment. Can the Minister tell us what criteria will be used to allocate those funds to individual projects? More importantly, will he consider seriously the necessity to revitalise and regenerate many of our tourist centre attractions? I am plugging some of the most sensitive and beautiful areas around Newcastle, Kilkeel and Warrenpoint, which, together with many other areas in the Six Counties, have not had the revitalisation of tourist infrastructure that they need.

Sir Reg Empey:

I thought that I might receive a question from that direction, so I asked my officials to prepare a note on that topic, and an interesting statistic emerged. A total of just over £109·5 million of financial assistance has been offered to tourist accommodation and amenity projects throughout Northern Ireland in the past 10 years. The South Down constituency has received the second largest proportion of financial assistance, which represents 13·8% of the total grant offered in that 10-year period. The Member must concede that his area is not exactly deprived in that regard. However, I take the wider point seriously. Tourism is receiving some assistance from the European Union, the IFI and our own recourses. To that cocktail of funding we can add the contributions from the local authorities and the tourist industry.

The tourist board and the Enterprise, Trade and Investment Committee are carrying out reviews, as the Member will be aware, because they recognise that, from time to time, they must decide where the emphasis lies. The Member also said that regeneration is required. One scheme is under way at present to examine guest house provision and accommodation standards. A debate is raging in the Newcastle area about having a major amenity as a gateway to the Mournes. These are all significant measures. However, the Member must agree that the biggest boost we can give to tourism in Northern Ireland is the removal of the sort of scenes that appear constantly on television screens - nationally and internationally - which drive people away.

I have told the House may times that the tourism industry is operating at one third of its potential. That is a crying shame. There is huge potential for jobs and, given that agriculture will be under pressure for the next few years, the rural community and natural-resource-based tourism will be able to take advantage of a wonderful opportunity. That will happen only if the opportunity can be provided.

Jobs in Strabane and
Omagh District Council Areas

9.

Mr Hussey

asked the Minister of Enterprise, Trade and Investment to detail the total jobs lost and total jobs created in the Strabane and Omagh District Council areas over the last three years.

(AQO 879/01)

Sir Reg Empey:

It is not currently possible to provide information on redundancies for district council areas. However, over the past three years, 193 redundancies were confirmed to the Department in the Strabane job- centre area and 217 in the Omagh job-centre area. Information on the number of jobs created is not available. However, figures from the NI census of employment can be used to estimate the net change in employee jobs between censuses. Latest figures show that between 1997 and 1999 the number of employee jobs in the Strabane and Omagh district council areas increased by 90 and 786 respectively.

Mr Deputy Speaker:

Mr Hussey may ask a supplementary question, but I suspect that he will receive a written answer.

3.00 pm

Mr Hussey:

I understand the constraints of time. The Programme for Government shows that growth is constrained by the structure of the economy. It highlights declining sectors such as textiles. The Minister realises the difficulties that exist in west Tyrone, which comprises the two district council areas of Strabane and Omagh. Given those concerns, can the Minister assure the House that the employment figures for west Tyrone will at least reach the Northern Ireland average?

Mr Deputy Speaker:

The Minister will supply a written response to the question. Time is up for questions to the Minister of Enterprise, Trade and Investment. There will now be questions to the Minister for Employment and Learning. I wish to advise Members that question 4, in the name of Mrs Nelis, has been withdrawn and will receive a written answer.

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Employment and Learning

FE Colleges - Remission of Fees

1.

Mr Gallagher

asked the Minister for Employment and Learning whether further education colleges have had their fees remitted as a result of the support package initiated by her Department last year.

(AQO 893/01)

The Minister for Employment and Learning (Ms Hanna):

Tuition fees for full-time students aged 19 and over who are attending vocational courses in colleges of further education were abolished with effect from 1 August 2001. Guidance to colleges about student eligibility and details about the funding available were issued in a departmental circular on 26 July 2001.

Mr Gallagher:

Will the Minister inform the House what the eligibility requirements for the remission of fees are?

Ms Hanna:

Colleges should remit fees for full-time students who are aged 19 or over on 1 July before that academic year and who are undertaking a vocational programme of study at national vocational qualification (NVQ) level three or below and who meet the European residency criteria. Purely academic programmes of study at that level, such as GCSEs and A levels and programmes at level four and above, are excluded.

Dr Birnie:

Given that several further education colleges have severe financial problems and deficits, what is the Department's view of colleges that may raise fees for various short courses to raise funds to redress deficits?

Ms Hanna:

The Department pays colleges a maximum of £840 per annum for each full-time student enrolled after 1 August 2001 who meets the eligibility criteria. That sum is based on the average amount received by each college before the introduction of the fees remission policy.

Capital Investment Programmes

2.

Mr Fee

asked the Minister for Employment and Learning what capital investment programmes are planned by her Department.

(AQO 888/01)

Ms Hanna:

In 2002-03, capital funding of £21 million will be invested in the further education sector. That funding will be targeted primarily at major works, health and safety maintenance, access for disabled students and capital equipment - including funding for information and communications technology equipment and centres of excellence.

Regarding higher education, the Department's planned capital budget for 2002-03 is £9·4 million. That will be used for various projects, including enhancing infrastructure and facilitating compliance with forthcoming disability legislation. In addition, 2002-03 will see the first tranche of grants under the Science Research Investment Fund programme. That aims specifically at strengthening science research, and grants of £7 million will be available in 2002-04.

Mr Fee:

It is very welcome to have the assurance that some £37 million will be spent on the capital investment programme. Can the Minister give more precise details about which schemes will be introduced for funding in the further education sector?

Ms Hanna:

I am examining the capital programme for the coming year. The Department for Employment and Learning is making progress with several private finance initiative schemes to provide brand new build accommodation at Omagh College of Further Education and East Tyrone College of Further and Higher Education and a new campus for the Belfast Institute of Further and Higher Education. There is also a partnership between the Belfast Institute and the University of Ulster to provide brand new accommodation at Springvale in west Belfast.

Mr Hamilton:

Does the Minister agree that one of the most urgent capital requirements relates to the Henry Garrett Building at Stranmillis University College? Part of the building was recently closed on health and safety grounds. The teachers of the future surely deserve better training facilities.

Ms Hanna:

I agree that there are financial issues with the Henry Garrett Building, which I visited some weeks ago. The Member is probably aware that they are being addressed, and I can give him more details in writing.

Student Poverty

3.

Mr ONeill

asked the Minister for Employment and Learning what financial support is in place to address student poverty.

(AQO 890/01)

Ms Hanna:

Grants are being reintroduced in higher education from September 2002, targeted specifically at students from low-income backgrounds. Households with incomes of less than £15,000 are eligible for grants of up to £1,500. Childcare grants have been in place from 1 September 2001. The level of parental income at which a contribution towards tuition fess becomes due has also been increased. Student loans, which, as the Member knows, are highly subsidised from public funds, are also available.

In further education, fees for full-time students over 19 years of age on vocational courses have been abolished. A system of discretionary grants was introduced in September 2001. Students who experience particular financial difficulties during their studies can also avail of access and hardship funds in further and higher education.

Mr ONeill:

Can the Minister outline any further ideas or steps that she may have in mind to address the problem of fees, given its importance? How much would it cost to abolish fees?

Ms Hanna:

My officials have calculated that the abolition of fees across higher and further education, both full-time and part-time, could cost up to an additional £35 million per year. The Department must ensure that the money it has reaches the areas where it is needed most. This year, £116 million has been spent on student support. Next year, that figure will rise to £133 million. In addition to that, there is £65 million from Seán Farren's support scheme.

A considerable amount of money is being spent. The threshold at which student fees are paid has been raised. Currently, over half the students in higher education do not pay fees, one quarter pay 50% of fees and only the remaining quarter pay the full amount. The income threshold for the payment of fees has been raised to £20,000 per household. The threshold at which student grants are available has also been raised.

Mr Beggs:

Do the high levels of student debt deter potential students, especially those from low-income backgrounds, from entering higher and further education? The number of Unionist students from low-income backgrounds entering further education is particularly low. Is that related to a lack of information about grants that may be available?

Ms Hanna:

Recent evidence from Market and Opinion Research International (MORI) suggests that we are better at attracting and retaining students from lower- income backgrounds than is the case across the water. I do not have the figures to hand on the community background of students, but if they are available, I will supply them to the Member.

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Decentralisation of Jobs

5.

Mr Dallat

asked the Minister for Employment and Learning to detail (a) the number of personnel currently employed in her Department; and (b) how many of these jobs may be decentralised between January and December 2002.

(AQO 895/01)

Ms Hanna:

The Department for Employment and Learning currently employs 1,512 staff, of whom 602 are employed outside Belfast. There are no plans for further decentralisation. However, the Executive have commissioned Deloitte & Touche to carry out a review of Northern Ireland Civil Service accommodation.

Mr Dallat:

I welcome the moves afoot to examine the problem at least. Why must so many jobs be located in Belfast, and why is it not possible to proceed with decentralisation?

Ms Hanna:

Decentralisation is under review. There are obvious advantages in locating headquarters close to Stormont and in having ready access to senior civil servants. However, it is necessary to examine more closely the possibility of locating our services beyond Belfast. The extra costs and time involved when staff travel from other areas, including car parking and other factors, must be taken on board. My Department has JobCentres throughout Northern Ireland, but there may be the potential to build on that.

Evaluation of New Deal

6.

Mr A Maginness

asked the Minister for Employment and Learning what the main findings of the evaluation of the New Deal published in January 2002 are.

(AQO 894/01)

Ms Hanna:

The evaluation was generally positive. It found that New Deal worked well with motivated participants and with those who had positive experiences of the labour market. Many instances of good practice were found. The role of the New Deal personal advisor emerged as a significant factor in the successful delivery of the programme. The programme was less effective in dealing with those who face multiple barriers to employment, and my Department is working to rectify that.

Mr A Maginness:

I am gratified that the evaluation found that New Deal worked reasonably well. Where is there room for improvement in the delivery of the programme and what measures could the Minister's Department take to make those improvements?

Ms Hanna:

Although the evaluation was generally positive, it showed that there is room for improvement, particularly when dealing with participants with multiple barriers to employment. My Department is reviewing how best to tailor that provision to meet the needs of those groups. In addition, the evaluation highlighted the need for refresher training for personal advisors, and a comprehensive programme for their training commenced recently.

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