Committee for Enterprise , Trade and Investment (ETI) Report

End of Mandate Report 2007-2011

Remit and Membership

Remit:

The Committee for Enterprise, Trade & Investment (ETI) is a Statutory Committee established in accordance with paragraphs 8 and 9 of the Belfast Agreement, Section 29 of the Northern Ireland Act 1998 and under Assembly Standing Order 48. The Committee has a scrutiny, policy development and consultation role with respect to the Department for Enterprise, Trade & Investment (DETI or the “Department”) and has a role in the initiation of legislation.

The Committee has power to:

• Consider and advise on Departmental Budgets and Annual Plans in the context of the overall budget allocation;
• Approve relevant secondary legislation and take the Committee stage of relevant primary legislation;
• Call for persons and papers;
• Initiate inquiries and make reports; and
• Consider and advise on matters brought to the Committee by the Minister for Enterprise, Trade & Investment.

Membership:

Alliance: Sean Neeson

DUP: Paul Frew, Paul Givan, William Irwin

Independent: Gerry McHugh

SDLP: Alban Maginness (Chairperson), Alasdair McDonnell

Sinn Fein: Paul Butler (Deputy Chairperson), Jennifer McCann, Claire McGill

UUP: Leslie Cree

Achievements of the Committee

Bills

1. During the mandate, the Committee considered four bills: The Energy Bill; The Tourism (Amendment) Bill; The Unsolicited Services (Trade and Business Directories) Bill and The Debt Relief Bill,
2. The Energy Bill (2010-2011): main principles were:
   • To safeguard the interests of customers through the provision of guaranteed standards of performance applicable to gas licence holders;
   • To provide a sound and binding basis upon which suppliers will supply customers where supplies of gas are taken without the customer having first agreed contractual terms with the supplier, through the provision of deemed contracts;
   • To extend the powers of entry into premises for gas companies so that they broadly align with the powers available to electricity companies; and
   • To help ensure the uninterrupted operation of gas and electricity networks through the introduction of a special administration regime relating to network companies which are threatened with insolvency or become insolvent.
3. The Committee recommended amendments relating to clauses in the bill that related to reasons for power of entry, reasons for meter approval (to include repair) and provisions for meter tampering. The recommendations for changes to the latter two were accepted by the Department and the Bill was amended to reflect the recommendations. In relation to the suggestion to remove the phrase “culpable negligence” (relating to power of entry), the Department proposed an alternative amendment during the consideration stage of the Bill to replace the term “or by culpable negligence” with the term “or recklessly.” This was passed by the Assembly.
4. The Tourism (Amendment) Bill (2010-2011): main principles were:
   • To change the frequency of the statutory inspections of tourism accommodation (“certification”);
   • To change the mechanism for appointing the chairperson of the Tourist Board; and
   • To make provision for the potential transfer of tourist accommodation grant from Invest NI to the NITB.
5. The Committee raised an issue with the frequency of statutory inspections (every four years) be written in the Bill as part of Clause 1. If was considered that this would be difficult to change if it were deemed in the future to be too lengthy/short. Members suggested that powers to change the frequency of statutory inspections be allowed by way of subordinate legislation. It was considered that this would allow changes to be made more easily and quickly, if the need arose. The Department agreed that this approach would be helpful and at the time the Bill was introduced to the Assembly, the Bill was written in a way that allowed the frequency of statutory inspections to be changed by way of subordinate legislation.
6. The Unsolicited Services (Trade and Business Directories) Bill: main principles were:
   • To re-enact, with amendments, certain provisions of the Unsolicited Goods and Services (Northern Ireland) Order 1976 (‘the 1976 Order’). These provisions govern the circumstances in which businesses may be charged for the publication about them in directories;
   • To update the legislation to facilitate electronic commerce by introducing equivalence between paper-based methods and electronic methods for contracting an entry in a directory.
7. As this was a very technical bill to update legislation on trade directories, the Committee was mostly content with the provisions in the Bill. The Committee raised queries relating to details required in an electronic invoice and notices of renewals on existing contracts . The Committee was satisfied with the Department’s responses on the queries raised.
8. The Debt Relief Bill: the main principles were:
   • The provision of a debt relief solution to debtors who have no reasonable prospect of ever being able to pay their debts;
   • The establishment of structures whereby the Department of Enterprise, Trade & Investment will be entitled to provide advice and information to the public about relief of debt and related matters or make arrangements with others to do so.
9. The Committee raised queries relating to guidelines and timescales for investigations into debt relief orders and conditions for making a debt relief order. The Committee was satisfied with the Department’s responses on the queries raised.

Inquiries

Renewable Energy Inquiry (2009-2010 and 2010-2011 sessions)

10. During 2009-2010, the Committee commenced a renewable energy inquiry entitled, “Barriers to the Development of Renewable Energy Production and its Associated Contribution to the Northern Ireland Economy” and continued the main body of work in the 2010-2011 session. The purpose for the inquiry was to critically examine the current level of support and assistance made by key stakeholders in the renewable energy sector to the development and growth of renewable energy production.
11. Specifically, the Committee’s inquiry sought to:
    • Consider the current mechanisms at national, regional and local level to support and assist renewable energy production;
    • Compare the mechanisms for support and assistance in Northern Ireland with those in other EU member states considered to be in the forefront of renewable energy development;
    • Examine the support and assistance available to SMEs in the renewable energy sector to develop renewable energy technologies;
    • Examine the support and assistance available to SMEs in the renewable energy sector to grow and develop their businesses;
    • Assess the appropriateness of current mechanisms to develop and grow both local renewable energy markets and export markets;
    • Assess which EU member states are considered to be in the forefront of renewable energy development both overall and for each type of renewable energy; and
    • Report to the Assembly with full findings, conclusions and recommendations for overcoming the barriers to the development of renewable energy production and its associated contribution to both the energy mix and the Northern Ireland economy.
12. By the closing date for submissions approximately 53 substantive responses were received covering a range of issues of concern to businesses, renewable energy support organisations, public sector bodies, other statutory committees of the Assembly and individuals. The Committee took both oral and written evidence and published the report into the findings of the inquiry on 14 February 2011, when the report was debated in the Assembly.
13. Key conclusions and recommendations from the report surrounded issues around Government vision and policy, Government communications, incentives for renewable energy production, support for the development of renewable energy technologies, support for businesses, grid connection, grid infrastructure, planning and consents and public buildings and renewable energy.

Credit Union Inquiry (2008-2009 session)

14. During 2008-2009, the Committee conducted an inquiry on the role and potential of credit unions in Northern Ireland. The purpose of the inquiry was to critically examine the role of credit unions within the communities they serve to identify the barriers that are preventing credit unions here from offering a wider range of services and to consider how the potential can be unlocked to permit credit unions to expand their range of services and to support them in doing so.
15. The terms of reference for this inquiry were:
    • Assess the current ethos, regulation and legislation of credit unions in Northern Ireland and compare these with provisions in Great Britain and Republic of Ireland;
    • Compare the different services available to credit union members in Northern Ireland, Great Britain and the Republic of Ireland;
    • Assess the role and contribution of credit unions in promoting the financial well-being of their members and wider community;
    • Examine the legal and regulatory barriers preventing credit unions from participating in the ‘business of banking’ and promoting financial inclusion;
    • Compare the role and availability of public funding available to credit unions in Great Britain, Northern Ireland and the Republic of Ireland;
    • Examine what policy development and practices have taken place since the Review of Credit Unions;
    • Assess the Treasury Select Committee recommendations on credit unions; and
    • Report to the Assembly on the Committee’s analysis and conclusions in relation to the above and make relevant recommendations.
16. The Inquiry resulted in a number of key recommendations. The main recommendation proposed that Credit Unions in Northern Ireland be permitted to expand the range of services they can offer to include at least those services that their counterparts in GB are permitted to offer. These include current accounts, internet and telephone banking, electronic transfer of wages, Automated Teller Machines (ATMs), insurance, discount services, debit cards, mortgage, bill payment, direct debit, standing orders and junior savings accounts.
17. For credit unions to be permitted to expand their range of services requires changes to legislation in both GB and Northern Ireland. The Committee also learned that it would require a transfer of responsibility for regulation of credit unions from DETI Companies Registry to the Financial Services Authority. Both the Minister for Enterprise, Trade & Investment and Treasury have accepted the Committee’s recommendation and work is currently underway to bring about the required legislative changes required. It is envisaged that the appropriate legislation will be in place before the end of the 2011 calendar year.
18. There was a recommendation from the Committee relating to the need for a package of financial support from Government to assist credit unions with the transitional and developmental costs associated with the change.
19. As part of Treasury’s Inclusion Fund there is a Growth Fund for Credit Unions in GB. The Committee considered it reasonable that Treasury, in taking on responsibility for regulating credit unions in Northern Ireland under the authority of the FSA, extend the Growth Fund to include Northern Ireland credit unions.

Policy Scrutiny

Independent Review of Economic Policy (IREP)

20. The Review was commissioned by the Department in December 2008 and was very much welcomed by the Committee. The main aim of the review was to determine whether existing DETI and Invest NI policies, programmes and resources will contribute optimally to the delivery of the productivity goal contained in the Programme for Government. The Committee closely followed the progress of the Review and ultimately received an oral briefing in October 2009 from the Chairman of the Review Panel, Professor Richard Barnett. Since the Report has been published, the Department conducted a 6-week consultation on the findings of the Report, which the Committee considered in January 2010. In that same month, the Minister introduced to the Assembly her proposals to implement some of the recommendations of the Report; the Committee then considered the Minister’s proposals and issued a letter to the Minister outlining the Committee’s views. These included:
    • Disappointment that the proposals would not be brought forward at an early date but would be at the core of the next Programme for Government.
    • Suggestions that the proposed Steering Group will not operate at a high enough level within Government to drive the implementation of the proposals across all departments.
    • The importance of the proposal for closer working relationships between DETI and DEL, especially in relation to ensuring that universities and further education colleges are providing opportunities to develop the skills required for business.
21. The Department submitted an implementation plan for the recommendations to the Committee in March 2010. The Committee asked to be kept informed of the meetings of the Minister’s Steering Group and the Executive Sub-Committee on the Economy. In January 2011, the Committee considered a consultation document for the NI Executive’s Priorities for Sustainable Growth, which is one part of formulating a new economic strategy for NI. The Committee collated responses from the relevant committees and submitted them to the Department.

Strategic Energy Framework (SEF)

22. The SEF aims to set out the policy direction on energy for the energy industry and consumers, and establishes the Department’s key milestones and targets. The SEF is Northern Ireland’s main strategy for energy for the next 10 years. The Committee will also have a key role in monitoring its implementation over the coming years and advising the Department on the direction the SEF is taking. Departmental officials have briefed the Committee several times on the development of the SEF.
23. Key issues explored by the Committee included sustainability and security of supply along with associated cost implications, renewable energy, the environment and the Single Electricity Market. It was the renewable energy element of the SEF that prompted the Committee to consider how Northern Ireland could further develop in this field. This led to the Committee visit to Europe and to the Committee’s inquiry into renewable energy.
24. In September 2010, DETI published the final SEF. Following publication, the Committee tabled a motion and called on the Assembly to take note of the document and it was welcomed by the Assembly. Many MLAs shared the Committee’s concerns regarding diversity of renewable energy supply, collective responsibility of government, infrastructure issues, development of competition and the contribution of the renewable energy sector to the overall economy.

Northern Ireland Renewable Obligations (NIRO)

25. The NIRO is the main financial support mechanism for encouraging the development of renewable electricity generation in Northern Ireland. It places a legal requirement on electricity suppliers to obtain a proportion of their supply from renewable energy sources. It is based on a system of Renewable Obligation Certificates (ROCs) that are provided to renewable generators by Government, and then are issued to suppliers. The number of ROCs are dependent on MegaWatt Hours (MWh) produced, and vary depending on the technology that is used to produce the electricity. Members were dissatisfied at the number of ROCs assigned to energy produced by anaerobic digestion in the 2010 NIRO and urged the Department to increase this for the 2011 NIRO. In July 2010, the Department released its consultation on the 2011 NIRO and an increase for ROCs under anaerobic digestion is one of its main proposals.
26. In the 2010-2011 session, members considered the consultation responses on the Department’s proposed changes for NIRO 2011. Almost all of the respondents were in favour of the increased support for anaerobic digestion. In the same consultation, there was a proposal to set the greenhouse gas (GHG) emission reduction requirement at 60% rather than the 35% required by the EU (for biomass and biogas installations). Members were concerned with this proposal, as key stakeholders did not agree with the proposal. Therefore, the Committee received oral briefings from the Agri-Food and Biosciences Institute (AFBI) and the Department for their views on the proposal. Following these briefings, the Committee recommended that the requirement remain at 35% rather than 60%. The Department subsequently removed this proposal from the NIRO 2011.

Draft Tourism Strategy

27. As the impact of tourism on the economy grows, the Committee sees it as increasingly important for Northern Ireland to have a tourism strategy that will meet visitor expectations and significantly contribute to the Northern Ireland economy. In the 2009-2010 session, the Committee received clarification on the rationale behind the strategy, opportunities for tourism and the next steps in the process. The Committee questioned officials on the strategy’s targets, how it contributes to the Department’s PSA for Tourism and details of any cross-departmental plans.
28. In the 2010-2011 session, the Committee considered the summary of the responses to the consultation on the draft NI Tourism Strategy. However, Departmental officials informed the Committee that the final Tourism Strategy and action plan is pending the agreement of the draft budget 2011-2014.

Social Economy Enterprise (SEE) Strategy

29. The vision for the Social Economy Enterprise (SEE) Strategy is to have an enterprise environment which encourages greater social entrepreneurial activity and is supportive of those SEEs that want to grow. The Committee noted the draft strategies in 2008-2009, after which the Committee advised the Department that the Strategy required:
    • the inclusion of clear targets and well-defined key performance indicators to measure progress;
    • measurement of the impact of the Strategy on the social economy sector;
    • consideration, by the Department, of its lead role in ensuring that all partners identify, agree and meet their responsibilities in implementing the strategy; and
    • the Department’s role in the measurement of the overall cost of delivering the Strategy.
30. In January 2010, members received an oral briefing from Departmental officials on the final SEE Strategy which included changes to the strategy based on the Committee’s advice. The Committee agreed to endorse the strategy subject to the inclusion of financial commitments and clear targets for its implementation.
31. In June 2010, members considered the 2010/2011 SEE Operating Plan and agreed to receive updates on the implementation of each of the targets every 6 months and agreed to receive more detailed information on the dates for the implementation targets.
32. In 2010-2011 session, the Committee once again received an oral update on the implementation of the SEE Strategy and the action plan. Members welcomed the funds and resources that Invest NI and the Department have dedicated to the Strategy.

Project Kelvin

33. Project Kelvin is a joint €30m project between DETI and the Department of Communications, Energy and Natural Resources (DCENR) in the RoI. It is partly funded through the EU INTERREG IVA programme. The construction phase of the project was completed in November 2010. Project Kelvin provides direct, secure, high speed telecoms connectivity from 8 points of presence in Northern Ireland to Canada, USA, UK and mainland Europe. This link is now fully operational.
34. In announcing the project, the Minister for Enterprise, Trade & Investment said that it, “will provide opportunities for Northern Ireland companies selling goods and services overseas but also improve our attractiveness to knowledge based inward investment.” The Committee has received oral briefings on a number of occasions on progress with the development of the project.

Budget

35. The Committee regularly scrutinised and advised on DETI’s budget in relation to allocation, expenditure and reductions. The Department also briefed the Committee whenever their quarterly monitoring rounds were completed. Monitoring rounds included the entire breakdown of the Department’s budget, reduced requirements in any project or section within the Department and any new monies becoming available. During the last couple of fiscal years, the Department had to readjust the budget (reclassification, reallocations, and reduced requirements), due to reductions in public spending. The Committee closely examined these budgets and reclassifications.
36. In the 2010-2011 session, the Committee specifically scrutinised the Department’s input into the Comprehensive Spending Review (CSR) 2011-2015 and subsequently, the Department’s spending and savings plan for the next budgetary period. The Committee received oral briefings from the Department and Invest NI, along with those organisations that submitted their views on the implications of the 2011-2015 draft budget. Following these briefings, the Committee expressed concerns regarding the significant reduction in Invest NI’s budget, reduction in capital expenditure and the existence of spending and savings proposals in the absence of a strategy for economic development or an investment strategy. The Committee also welcomed the DETI Minister’s intentions to prepare a case to improve on the proposed allocation.

Approach to undertaking work

Stakeholder events

37. The Committee hosted a number of events during the mandate including a business breakfast at the NI Balmoral Show, a Renewable Energy Workshop and an event to launch the Renewable Energy Inquiry.
38. The Committee hosted a business breakfast at the Northern Ireland Balmoral Show on 12 May 2010, in conjunction with European SME Week 2010. Invitees included SMEs in the agri-food industry and approximately 110 guests attended. Guests were able to network and engage with Committee members to discuss successes and challenges for the industry.
39. The Committee hosted a Renewable Energy Workshop in the Long Gallery, Parliament Buildings on 18 May 2010. Invitees included SMEs in the renewable sector. For the purposes of this event, the term ‘renewable sector’ was identified as organisations that are producing and/or developing renewable technologies in NI and use the renewable energy generated to sell to the electricity grid or other customers. There were approximately 60 guests that attended and a report was produced with the findings. The event also played an important role in the Committee’s decision to commence an inquiry into renewable energy.
40. The Committee hosted an event in the Long Gallery on 17 February 2011 for the launch of its report into the Renewable Energy Inquiry. Delegates included those organisations that submitted written and oral evidence to the Inquiry. There were speeches from representatives from renewable energy industry and approximately 60 guests attended. Guests also had an opportunity to put questions to the members and speakers during a question and answer session.

Visits/Outside meetings

41. During the mandate, the Committee visited 9 organisations and held 8 external meetings.
42. During Committee meetings outside of Parliament Buildings, the Committee sought to consider items that were relevant to the venue. For instance, during an external meeting at Ulster Supported Employment Limited (USEL), members received an oral briefing from the Social Economy Network on the issues for the social economy.

Research

43. The Committee generally commissioned Assembly Research to help inform key policy areas within its remit; for example, research relating to Bills being scrutinised by the Committee, business and the economy, tourism and energy. The Committee commissioned research to inform its decision on which facilities to visit during its visit to Europe in May 2010.
44. There were also several pieces of research commissioned during both inquiries. These research papers helped inform the Committee whilst considering the written evidence and formed parts of the final reports.

Evidence sessions

45. For both inquiries, the Committee first released a general call for evidence to the public and also wrote to key stakeholders for views and comments within the terms of reference. After the written evidence was collated, the Committee agreed which stakeholders to invite to provide oral evidence to the Committee. The same approach was taken for all four Bills.
46. In relation to the renewable energy inquiry, the Committee tried a unique approach to taking evidence. The Committee hosted a renewable energy workshop in the first instance to gather views of relevant stakeholders on the issues relating to renewable energy. This event eventually led to the Committee’s visit to Europe to compare and contrast renewable energy technologies and sites to those in Northern Ireland. Following the event and visit, the Committee commenced its inquiry into renewable energy in Northern Ireland. The inquiry was wide-ranging and the workshop and visit before the official commencement significantly helped reduce the time taken to conduct the official inquiry.

Visits

47. The Committee visited several organisations in Northern Ireland, all included in Appendix 2 of the report.
48. The Committee went on one external visit to Europe from 24 May-27 May 2010. During this visit, the Committee went to Brussels, Belgium; Herten, Germany and Soultz, France. During its time in Brussels, the Committee held meetings with various EU officials regarding EU funding and energy/business issues at a European level. In Herten, Germany, the Committee visited The Blue Tower Project; a multi-feedstock gasification plant which handles any combination of a number of materials. In Soultz, France, the Committee visited the first geothermal plant to be developed in France. The Plant uses hot dry rocks (HDR) 5 kilometres below the surface to heat water and generate power.
49. All information and data from the European visit was gathered in an Assembly Research paper, located on the Assembly’s website.

Matters for Incoming Committee

Primary legislation

50. The Energy Bill: The Energy Bill received royal assent 10 February 2011. There are powers under Clauses 1 and 22 to make subordinate legislation. These are powers to legislate on an enhanced level of consumer protection by standards of performance and powers to create a special administration regime for gas conveyance, electricity transmission and distribution companies facing actual or threatened insolvency.
51. The Tourism (Amendment) Bill: The Tourism (Amendment) Bill received royal assent on 25 January 2011. There are powers under Clause 1 to make subordinate legislation in relation to substituting a different period in respect of statutory inspections.
52. The Unsolicited Services (Trade and Business Directories) Bill: The Unsolicited Services Bill received royal assent on 15 December 2010. There are powers under clause 7 to amend the Schedule by order subject to negative resolution. The Schedule sets out the detailed requirements for various documents under the Bill. There is a power in Clause 7 to make consequential amendments in other legislation, but that power is very limited in its effect.
53. The Debt Relief Bill: The Debt Relief Bill received royal assent on 15 December 2010. The Committee received subordinate legislation in relation to this Act in February 2011. There may be some work for the new Committee to monitor how the policy in the legislation is working practically. There also may be additional subordinate legislation in relation to the Debt Relief Bill, or changes to existing subordinate legislation that the Committee may wish to suggest.
54. In relation to all of the primary legislation, the new Committee may receive subordinate legislation arising from each Act.

Recommendations from Committee inquiries

Credit Union Inquiry

55. The recommendations from the Credit Union Inquiry have been endorsed by Treasury and DETI. Both parties are currently in the process of creating legislation to enable credit unions to offer similar services as their counterparts in GB.
56. In the 2009-2010 session, members received an update from DETI on its ongoing work to implement recommendations of the Committee’s Inquiry. They identified pieces of legislation that need to be retained and those that need to be changed. A joint Treasury/DETI consultation document was issued in March 2010, but the Committee has yet to consider the responses to the consultation. This may be an area of interest to the new Committee, as the initial timeframe for implementing legislation was by end of December 2011.
57. The inclusion of Northern Ireland in the Growth Fund for Credit Unions should follow on from changes to regulation arrangements.

Renewable Energy Inquiry

58. The report on the Renewable Energy Inquiry was debated in Plenary on Monday, 14 February. The Executive and relevant government departments have 8 weeks to respond to the recommendations in the report. The new Committee should receive a response from the Department to the Inquiry recommendations before the end of June 2011.

Follow-up from Policy Scrutiny

General Issues

DETI Organisational Review

59. Towards the end of the 2009-2010 session, the Committee received notification that the Department was undertaking an organisational review. In June 2010, Members considered the project plan for DETI’s organisational review. The project’s purpose is to review the structures and activities in DETI and to ensure that resources are appropriately allocated to priority areas.
60. Details of progress with the organisational review were to come to the Committee in November 2010, however this was delayed by the Department. An oral briefing was scheduled for March 2011 but the Department did not issue papers and withdrew the oral briefing at short notice. No reasons were given to the Committee for this course of action.

Framework Programme 8

61. The Committee believes that opportunities were missed in Northern Ireland to take advantage of the funding available for research and development under EU Framework Programme 7. The Committee considered it essential that Northern Ireland is in a position to take full advantage of opportunities for funding for research and development under Framework Programme 8. More information should be available to the new Committee as this matter progresses.

Project Kelvin

62. The Committee had been following progress with the implementation of Project Kelvin so as to ensure that the Department receives value for money through the number of customers signed and operating, the inward investment attracted to Northern Ireland where Project Kelvin was a factor in the decision to locate here and the appropriateness of the points of presence chosen along with any future needs there may be for further points of presence. The project is in its early stages and significant results may not be available in the short-term.

Next Generation Broadband

63. The committee was engaged in ongoing scrutiny of the Department’s Next Generation Broadband Project and the Department’s actions relating to the national broadband strategy.

Social Economy Enterprise (SEE) Strategy

64. At the end of the 2007 mandate the level of funding to the SEE Strategy was as yet unknown. The Committee was therefore, not in a position to comment on it.

Energy Issues

Strategic Energy Framework

65. The Strategic Energy Framework was finalised and published in the 2010-2011 session and includes renewable energy generation targets of 40% by the year 2020. This is an Executive document, led and produced by DETI. There are no action plans or interim targets as yet, arising from the Framework.

Northern Ireland Renewable Obligations (NIRO)

66. As the NIRO is the main method of incentivising renewable energy generation, the Committee had been closely to scrutinising NIRO proposals to ensure proper levels of incentivisation. Although there is no requirement for the NIRO to be updated on an annual basis, given the nature of the Department’s renewable energy remit, further changes to the NIRO are to be expected in coming years.

Gas Network Extension Study

67. The Department commissioned an independent study to determine the technical and economic feasibility of bringing natural gas to additional areas in the north-west and west of Northern Ireland into the feasibility of extending the gas network to the west of Northern Ireland. The Committee considered the findings of the study in the 2009-2010 session and 2010-2011 session. The Department has yet to reach a conclusion on the action (if any) required as a result of the findings and informed the Committee that it is liaising with private companies to determine the best way forward.

Department of Energy and Climate Change’s (DECC) Electricity Market Reform (EMR)

68. The purpose of the EMR is to bring about the reforms necessary to achieve the UK objectives on decarbonisation, renewable energy, security of supply and affordability. This may have wide-ranging implications for the way in which renewable energy is incentivised in Northern Ireland.

IME3 Package (Third Energy Package)

69. Legislation to implement the Department’s proposals for the EU Third Energy Package was considered by the Committee towards the end of the mandate. The legislation allowed for the Utility Regulator to make the decision, at a later date on the unbundling arrangements for electricity. The consultation responses came to the Committee at the end of the mandate at the same time as the SL1. Committee registered its concerns with the Department that it was not able to fully scrutinise the policy proposals and take oral evidence from key stakeholders. However, given the fact that infraction proceedings could be taken against Northern Ireland by the EU for failure to implement the provisions of the EU Directive the Committee reluctantly stated that it was content with the proposals. These proposals do not preclude any of the options from being implemented but move the decision-making authority on which option to adopt from the Department to the Utility Regulator.

Common Arrangements for Gas (CAG)

70. At the end of the Mandate, the Minister wrote to the Committee stating her intention to issue a public consultation on proposed primary legislation for cross border wholesale gas transmission arrangements. CAG aims to optimise the existing gas infrastructure and harmonise operation of the two networks to provide an integrated gas network on the island of Ireland, linking to SW Scotland and the Isle of Man. The Bill is intended to provide for a simpler, more efficient and cost-effective operational system for transmitting gas by October 2012.

Bioenergy Action Plan 2010-2015

71. The Minister wrote to the Committee at the end of the Mandate to present the Department’s Bioenergy Action Plan. The aim of the plan is to increase the sustainable deployment of bioenergy in Northern Ireland.

Economic Issues

Independent Review of Economic Policy (IREP)

72. In the 2010-2011, the Committee collated responses from relevant statutory Committees regarding their views on an NI Executive consultation document entitled “Priorities for Sustainable Growth.” This is part of the steps required to draft a new strategy for the NI economy. The draft Economic Strategy is due to be completed and issued for consultation later in 2011.

Corporation Tax

73. In March 2010, members raised the issue of a reduced rate of corporation tax in Northern Ireland and received an oral briefing from the NI Economic Reform Group which had published a report on the issue. The Committee subsequently agreed to bring forward a take note debate in Plenary on the issue, and since it was considered to be a cross-cutting one, the Committee co-sponsored the motion with the Committee for Finance and Personnel in May 2010. The issue is complex; there are cost implications for Northern Ireland’s government and some commentators believe that benefits may not be seen for another 20-30 years.

Invest NI – Budget and TRANSFORM

74. Out of the recommendations in the Independent Review of Economic Policy (IREP), Invest NI is implementing some changes to its operational structure. For instance, by reducing the time taken to process applications and servicing a wider business base. The new strategy for Invest NI’s operations is known as TRANSFORM. This, in addition to the proposals to significantly reduce Invest NI’s capital budget, are matters that the Committee did not have the opportunity to consider.
75. Invest NI may be in a position, in the near future, to provide details of engagement with Europe and how funding from Framework Programme 8 can be best leveraged to benefit the Northern Ireland economy.

Tourism Issues

Tourism Strategy for Northern Ireland

76. At the end of the 2010-2011 session, the Tourism Strategy for NI was finalised, subject to Executive approval. As this is the lead strategy for the direction of tourism in NI, the new Committee may have an interest in scrutinising the performance of the strategy and subsequent action plans, once finalised.

Signature Projects

77. Ongoing scrutiny of progress with Tourism Signature Projects was an important area of work for the Committee. The Committee received assurances from the Minister in March 2011 that, despite concerns around the quality of some of the surrounding infrastructure, she is confident that the Titanic Signature Project and its surroundings will be ready by April 2012.

Appendix One

¹ With effect from 10 September 2007 Mr Francie Molloy replaced Mr Mitchel McLaughlin.
² With effect from 21 January 2008 Mr Gerry McHugh replaced Mr Francie Molloy.
³ With effect from 20 May Ms Jennifer McCann replaced Paul Maskey as deputy chairperson.
⁴ With effect from 20 May Mr Paul Butler replaced Mr Paul Maskey.
⁵ With effect from 15 September 2008 Mr Jim Wells replaced Mr David Simpson.
⁶ With effect from 30 June 2009 Mr Alban Maginness replaced Mr Mark Durkan.
⁷ With effect from 14 September 2009 Mr Stephen Moutray replaced Mr Simon Hamilton.
⁸ With effect from 14 September 2009 Mr David Simpson replaced Mr Robin Newton.
⁹ With effect from 14 September 2009 Mr Gregory Campbell replaced Mr Jim Wells.
¹⁰ With effect from the 14 September 2009 Paul Butler replaced Jennifer McCann as Deputy Chairperson
¹¹ With effect from the 31 March 2010 Mr Alan McFarland stood down from membership of the committee
¹² On 13th April 2010 Mr Daithí McKay was appointed as a Member of the Committee for Enterprise, Trade and Investment.
¹³ With effect from 28th June Mr Paul Frew replaced Mr Stephen Moutray as a member
with effect from 1st July 2010 Mr David Simpson resigned as a member
¹⁴ With effect from 13th September 2010 Mr William Irwin replaced Mr Gregory Campbell as a member of the Committee
¹⁵ With effect from 13th September 2010 Mr Paul Givan was appointed as a member of the Committee
¹⁶ With effect from 13th September 2010 Mrs Claire McGill replace Mr Daithi McKay as a member of the Committee

Appendix Two

Committee for Enterprise, Trade and Investment

Committee meetings & visits

¹ Session ran May 2007 to August 2007

² Session ran from September 2010 to date of dissolution 24 th March 2011

³ Information provided will be to end of January 2011 and updated at date of dissolution

Bills

Statutory Rules

Committee Inquiries

Committee Reports (excluding Bill and Inquiry reports)

Budget Scrutiny

Primary Legislation Scrutiny