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COMMITTEE FOR ENTERPRISE, TRADE AND INVESTMENT

1st Report, 2009

Annual Report 2008-2009

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:

Membership:

Alliance : Sean Neeson
DUP: Simon Hamilton, Robin Newton, Jim Wells
Sinn Fein: Paul Butler, Jennifer McCann (Deputy Chairperson)
SDLP: Alban Maginness (Chairperson) 1, Alasdair McDonnell
UUP: Leslie Cree, Alan McFarland
Independent: Gerry McHugh

1 With effect from 30th June 2009 Alban Maginness replaced Mark Durkan

Enterprise Committee

Committee for Enterprise Trade & Investment (from left to right) Alasdair McDonnell, Paul Butler, Gerry McHugh, Jennifer McCann (Deputy Chair), Simon Hamilton, Mark Durkan (Chair), Robin Newton, Leslie Cree, Alan McFarland, Sean Neeson.
Not pictured is Jim Wells

Annual Report 2008-2009

  1. This report covers the work of the Committee for Enterprise, Trade & Investment during the Assembly year 2008-2009, from 1st September, 2008 to 31st August 2009.
  2. During the Assembly session, the Committee met 35 times, once in closed session and 14 times in partly closed session. The majority of the partly closed sessions were to discuss the Committee inquiry into credit unions.

Subordinate Legislation

  1. The Committee has responsibility for considering both primary and subordinate legislation introduced in the Assembly. The topics of the legislation considered varied from business legislation (e.g. insolvency, administration, employment) to energy and electricity. The Committee considered no primary legislation in the 2008-2009 session, but considered and supported the approval of 22 items of subordinate legislation including eight relating to business, six relating to energy matters, six relating to health & safety and two relating to weights & measures.

Inquiries

  1. During 2008-2009, the Committee conducted an inquiry into the role and potential of credit unions in Northern Ireland. The purpose of the inquiry was to consider how credit unions could be permitted to expand the range of services they offer. An open call for evidence was issued and the Committee took oral evidence from a range of stakeholders from the public sector, the finance sector and the credit union movement. The Committee’s recommendations were welcomed by DETI and endorsed by HM Treasury following its review of credit unions and industrial and mutual societies in Northern Ireland. It is expected that resultant changes in legislation will permit credit unions to offer services such as deposit taking and group/society membership, as well as being able to access Government funding, participate in Government savings initiatives and possibly reinvest assets in the social economy sector. This will bring huge benefits to credit union members and local communities.

Budget Scrutiny

  1. The Committee regularly scrutinises and advises on DETI’s budget in relation to allocation, expenditure and reductions. The Department also consults the Committee whenever their quarterly monitoring rounds are completed. Monitoring rounds include a breakdown of the Department’s budget including, reduced requirements in any project or section within the Department and any new monies becoming available or required. The Committee closely examined budget readjustments and reclassifications that were proposed by the Department in response to the economic down turn.

Policy Scrutiny

Independent Review of Economic Development Policy
  1. Having recognised the need to review current economic development policy, the Committee very much welcomed the announcement by DETI that it intended to commission the Independent Review of Economic Policy. The main aim of the review is 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 has closely followed progress of the review and was briefed by the review team in January 2009. Issues discussed included the need for productivity gain, risk versus audit culture, comparison with economic development agencies in other regions, and investment levels. The Committee was briefed again in April 2009 where it received an update on the review team’s initial findings. The Committee will have an important role in scrutinising the outcomes of the review and in ensuring that the actions, planned and undertaken as a result of the review, provide the optimum way forward for implementing the recommendations of the review team. Additionally, the Committee will closely monitor the development of future economic policy to ensure that it meets the needs of the local economy.
Enterprise Strategy
  1. The Enterprise Strategy aims to set out how Government and its partners can encourage new businesses and help develop and grow existing businesses. The Committee noted the draft Enterprise Strategy in February 2009. As the Department has put the Enterprise Strategy on hold until after the completion of the Independent Review of Economic Policy, the Committee agreed to defer comment until this time.
Social Economy Enterprise Strategy
  1. 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 strategy in November 2008 and received an updated draft in January 2009. The Committee has also taken evidence from the Social Economy Network in relation to the strategy. Furthermore, the Committee sought the views of other relevant statutory committees in relation to the strategy and forwarded a composite response to the Department to clarify some issues. The Committee made the following suggestions for improvement:
Regional Innovation Strategy
  1. Led by DETI, the Regional Innovation Strategic Action Plan 2008-2011 represents the collaborative actions of government, academia and industry to advance the innovation agenda in Northern Ireland. Department officials briefed the Committee in December 2008 and again in July 2009. Key issues discussed included the implementation of the Strategic Action Plan and progress with the achievement of objectives for the strategy.
MATRIX
  1. MATRIX arose from the Regional Innovation Strategy. It is a business-led expert panel which works in partnership with the public sector and academia. It was tasked with developing a plan of action to establish Northern Ireland as a world class knowledge and innovation-based regional economy, fit to compete with the best. The Committee took evidence from the MATRIX panel in December 2008 and from the MATRIX secretariat in May 2009. Key issues discussed included the two strands of the implementation process, the potential for a share of future global markets and the MATRIX response to the current economic climate.
Next Generation Networks (NGN)
  1. The Programme for Government includes a commitment “to work with the business sector to deliver widespread access for businesses to a next generation broadband network by 2011.” The Department updated the Committee on current progress on the telecommunications infrastructure for NGN in April 2009 and received further oral briefings in May 2009. Key issues discussed included the current positions of the project including next steps, procurement and the timeframe for project completion. The Committee was supportive of the Department’s approach.
Strategic Energy Framework
  1. Following a review of the 2004 Strategic Energy Framework (SEF), the Department has developed a draft SEF for 2009. The broad objectives of the SEF remain similar. The SEF 2009 aims to set out the policy direction on energy policy for the energy industry, consumers, and the key milestones and targets associated with this approach. The Committee has a key role in scrutinising and advising on the development of the SEF 2009 and in monitoring its implementation over the coming years. Key to this is the scrutiny of energy prices and of the Single Electricity Market. Department officials briefed the Committee in November 2008 and again in March 2009. Key issues explored by the Committee included pre-consultation with key stakeholders, planned public consultation on the draft SEF, sustainability and security of supply along with associated cost implications, renewable energy, the environment and the Single Electricity Market.
Tourism Branding Strategy
  1. As the impact of tourism on the economy grows, the Department sees it as increasingly important for Northern Ireland to have a unique competitive identity to act as a framework to: align product development; experience delivery; and market communications in order to meet visitor expectations. The Tourism Branding Strategy is intended to deliver that identity. In November 2008 the Committee was briefed by NITB officials and the external consultant responsible for developing the strategy. Key issues discussed were the rationale behind the strategy, opportunities for tourism and the next steps in the process. The Committee was briefed in March 2009 on the outcomes of the pre-consultation on the strategy.
Committee Scrutiny of DETI Projects
  1. The Committee undertook an in-depth scrutiny of major DETI/Invest NI projects during 2008-2009. The Committee considered details of project objectives, targets and milestones, current performance against objectives and expected future performance along with identification and discussion of any problems or issues arising within these projects. The purpose was to ensure that these projects were on course to achieve the expected benefits and to determine what remedial action the Department was taking where this was not the case. Projects included:

Engagement

  1. The Committee held the following meetings outside of Parliament Buildings:
  1. The Committee conducted visits to the following locations:

Members of the Committee for Enterprise, Trade & Investment pictured with NITB Officials during a visit to Northern Ireland Tourist Board Headquarters

Members of the Committee for Enterprise, Trade & Investment pictured with NITB Officials during a visit to Northern Ireland Tourist Board Headquarters

Committee Motions

  1. To assist in the development of new economic policies, the Committee brought forward a motion for debate in Plenary on the effects of the economic downturn on businesses and potential solutions to problems facing the local economy. The Committee compiled evidence from businesses and business representative bodies along with evidence from DETI and its agencies and this was distributed to all members and published on the Committee website. Key issues identified and debated in plenary included new opportunities for helping all businesses in NI during the recession, opportunities for particular sectors to endure the recession, and possible governmental partnership opportunities in order to help businesses. The motion was welcomed and the Assembly agreed to note the Committee’s analysis.

Key Priorities for 2009-2010

  1. The Committee has an ambitious agenda for the session of 2009-2010. The top of the agenda is to work closely with the Department to develop a path out of the economic downturn and monitor the Department’s work to retain and attract jobs in all sectors. In addition to the short-term goal of overcoming the recession and making NI’s economy stronger and more resilient, the Committee will aim to stay on track with its long-term goals of supporting efforts to attract international investment to NI, to create and develop innovating businesses and to make Northern Ireland more self-sustainable in terms of energy and the economy.
  2. With those goals in mind, the top priorities on the Committee’s agenda are the economy, energy and tourism. The Committee will address its priorities through scrutiny of key policies such as the Regional Innovation Strategy, Enterprise Strategy, Social Economy Enterprise Strategy, NI Tourism Strategy and the Strategic Energy Framework 2009, including energy pricing and the Single Electricity Market. Additionally, the Committee will continue to scrutinise major projects and initiatives the Department administers such as Project Kelvin, Linergy, and the Reconnect Programme. The Committee’s role is to ensure that these policies deliver significant benefits for business, consumers and the wider economy.
  3. The Committee will have an important role in scrutinising and advising the Department on the outcomes of the Independent Review of Economic Policy. The Committee will have a key role in ensuring that the actions, planned and undertaken as a result of the review, provide the optimum way forward for implementing the recommendations of the review team and providing future economic development policies which offer the best way forward for the local economy.
  4. The Committee will be considering the need to conduct an inquiry, during the latter part of the next session, into the potential of the Single Electricity Market to deliver value for money for consumers.
  5. The legislative programme is likely to take up much of the Committee’s time during the latter part of 2009/10 session. The Committee will consider the following primary legislation during 2009-2010:
    1. The Gas (Northern Ireland) (Amendment) Bill 2009: The purpose of the Bill is to introduce legislation regarding rights of access, guaranteed standards, gas storage, special administrator scheme, meter testing and stamping, Deemed Contracts, and gas safety management.
    2. Tourism (Northern Ireland) Order Amendment Bill: The purpose of the Bill is to update the legislative arrangements in respect of the regulation (certification) of tourist accommodation in Northern Ireland; and (ii) amend the legislative requirements relating to the appointment of the Chair to the Board of NITB. In addition to changes to the Tourism Order, DETI also intends to amend associated subordinate legislation.
    3. Debt Relief Bill: The purpose of the Bill is to set up a scheme to assist individuals who can neither afford to pay their debts nor afford the cost of petitioning for bankruptcy. It will enable them to apply, at lower cost, to the Official Receiver for an Order similar to a Bankruptcy Order made by the Court.
    4. Unsolicited Services (Trade and Business Directories) Bill : The proposed Bill is intended to re-enact with amendments certain provisions of the Unsolicited Goods and Services (Northern Ireland) Order 1976. These provisions govern the processes of authorization by advertisers of entries in directories, for which demands for payment can legitimately be issued

ANNEX A

Committee for [Enterprise, Trade & Investment] – Expenditure for the period 1 September 2008 – 31 August 2009

Budget area
Details
Expenditure
Committee Travel - committee members and staff travel and subsistence in relation to visits and meetings outside Parliament Buildings Includes the cost of committee visits to:
  • Northwest Marketing Visit
5 meeting held outside Parliament Buildings 		£295.00
Printing of committee reports
  • CD Version of DETI Inquiry into the Role and Potential of Credit Unions and Opportunities and Barriers in NI – initial order of 110 copies: £477.51
  • CD Version of DETI Inquiry into the Role and Potential of Credit Unions and Opportunities and Barriers in NI – second order of 50 copies: £191.25
  • Inquiry Into Credit Unions and Barriers in NI – 13 Proof Copies: £91.14
  • Inquiry into the Role and Potential of Credit Unions and Opportunities and Barriers in NI – 41 full copies: £1,339.24
£2,099.14
General expenses Cost of refreshments for:
  • committee meetings - £1721.10
  • witness expenses - £220.96
£1942.06
   
£4336.20