COMMITTEE FOR FINANCE AND PERSONNEL

Minutes of Proceedings
Wednesday, 26 November 2008
Room 152, Parliament Buildings

Present:
Mitchel McLaughlin MLA (Chairperson)
Simon Hamilton MLA (Deputy Chairperson)
Dr Stephen Farry MLA
Jennifer McCann MLA
David McNarry MLA
Adrian McQuillan MLA
Declan O’Loan MLA
Dawn Purvis MLA
Peter Weir MLA

In Attendance: Shane McAteer (Assembly Clerk)
Colin Jones (Assistant Assembly Clerk)
Vivien Ireland (Assistant Assembly Clerk)
Paula Sandford (Clerical Supervisor)

Apologies: Fra McCann MLA
Ian Paisley Jnr MLA

The meeting commenced at 10.10 am in open session.

1. Apologies

Apologies are detailed above.

Agreed : that the evidence sessions on the Strategic Stocktake 2009-11 at Item 4 and the Committee Inquiry into Public Procurement Policy and Practice in Northern Ireland at Items 6 and 7 will be recorded by Hansard and the finalised transcripts will be published on the website.

2. Draft Minutes of Proceedings of 19 November 2008

Agreed: for publication on the Assembly website.

3. Matters Arising

The Committee noted the outstanding requests for information from the Department of Finance and Personnel (DFP).

Strategic Stocktake

The Committee considered a Secretariat paper on the Assembly involvement in the budget process.

The Chairperson briefed members on the outcome of the meeting which he and the Deputy Chairperson had with the Minister of Finance and Personnel on 24 November. The Committee considered the Department’s written follow up to this meeting, which set out proposed new arrangements for taking the Strategic Stocktake to the Assembly. This would include a Ministerial statement to the Assembly on 13 January 2009, “on the budget position for 2009-10, as reflected in the 2008-11 Budget approved by the Assembly on 29 January 2008, in the context of the strategic stocktake”. Following the Ministerial statement, the Committee would table a “take note” motion for plenary debate on 19 or 20 January 2009 “on the budget position for next year, in the context of the strategic stocktake as conveyed in the Ministerial statement on 13 January”. The Committee welcomed these developments.

Agreed : that clarification will be sought from DFP that documentation will be laid formally before the Assembly to accompany the Ministerial statement on 13 January 2009.

Mr McNarry indicated that he wished to reserve his position on whether the new arrangements for the Strategic Stocktake would meet the legal requirements in respect of the budget process.

The Committee deliberated on whether it should seek legal advice in relation to the Assembly involvement in the budget process.

Declan O’Loan and Dawn Purvis, proposed:

That, in proceeding with DFP’s proposed new arrangements for Assembly involvement to take forward the Strategic Stocktake, the Committee will also seek legal advice on the requirements of section 64 of the Northern Ireland Act 1998.

Question put.

The Committee divided: Ayes 4; Noes 5; Abstentions None.

AYES

Dr Farry, Mr McNarry, Mr O’Loan, Ms Purvis.

NOES

Mr McLaughlin, Mr Hamilton, Ms McCann, Mr McQuillan, Mr Weir.

ABSTENTIONS

None

Question accordingly negatived.

Dr Farry proposed:

That DFP should be asked to provide detail on how it reached its conclusion that the requirements of section 64 of the Northern Ireland Act 1998 have been met in respect of 2009-10 and 2010-11.

Question put and agreed to.

Banking Issues

Members noted the submission from the British Bankers’Association (BBA), on base rate fluctuations and bank interest rates.

Agreed : that the following issues should be included in the written submission by BBA:

• passing on base rate cuts to mortgage customers;
• cost of loans and overdrafts;
• level of fees and charges;
• calling in loans to businesses; and
• mortgage difficulties and repossessions.

Mr O’Loan left the meeting at 10.47 am.
Mr McNarry left the meeting at 10.49 am.
Mr O’Loan returned to the meeting at 10.50 am.

4. Overview of Issues Emerging from Strategic Stocktake 2009-11: Evidence from DFP

The Committee took evidence from Leo O’Reilly, Permanent Secretary, DFP; Michael Daly, Head of Central Expenditure Division, DFP and Paul Montgomery, Central Expenditure Division, DFP. The session was recorded by Hansard.

Mr McNarry returned to the meeting at 10.57 am.

Agreed: that DFP will provide up-to-date forecasts for capital receipts against figures in the Executive’s Budget 2008-2011.

Ms McCann left the meeting at 11.16 am.
Ms McCann returned to the meeting at 11.19 am.
Mr Weir left the meeting at 11.22 am.
Mr Weir returned to the meeting at 11.30 am.
Ms Purvis left the meeting at 11.45 am.
Ms Purvis returned to the meeting at 11.47 am.

Agreed : that DFP will provide a briefing paper to the Committee on the implications of the Pre-Budget Report for Northern Ireland.

Members considered the working draft of the Committee’s submission on the Strategic Stocktake.

Agreed : that the Secretariat will provide a revised version of the draft submission which will be considered by the Committee at next week’s meeting.

5. Committee Inquiry into Public Procurement: Assembly Research

The Committee considered a briefing paper by Assembly Research on Public Procurement and Small and Medium Enterprises.

Members considered a draft public notice for the Committee’s Inquiry into Public Procurement Policy and Practice in Northern Ireland.

Agreed: that the public notice is placed in the appropriate newspapers in line with normal procedures.

6. Committee Inquiry into Public Procurement: Evidence from Quigg Golden Contract Consultants

The Committee took evidence from Edward Quigg and James Golden, Directors of Quigg Golden Contract Consultants; and Caroline Eccles, Contracts and Arbitration Manager of Quigg Golden Contract Consultants. The session was recorded by Hansard.

Dr Farry left the meeting at 12.10 pm.
Mr Weir left the meeting at 12.17 pm.
Mr Weir returned to the meeting at 12.24 pm.
Mr McQuillan left the meeting at 12.24 pm.
Mr O’Loan left the meeting at 12.29 pm.
Ms McCann left the meeting at 12.47 pm.
Ms McCann returned to the meeting at 12.51 pm.
Mr Hamilton left the meeting at 12.52 pm.
Mr McQuillan returned to the meeting at 12.52 pm.
Mr Hamilton returned to the meeting at 1.00 pm.

Agreed: that the representatives of Quigg Golden Contract Consultants will be invited back at a later date in the Inquiry, to provide additional evidence on issues that emerge from the Committee’s consultation with stakeholders.

Agreed: that any further issues which the Committee wishes to raise in the meantime would be forwarded to the representatives of Quigg Golden Contract Consultants for a written response.

7. Committee Inquiry into Public Procurement: Evidence from Federation of Small Businesses (FSB)

The Committee took evidence from Wilfred Mitchell, Policy Chairman, FSB; George Dorrian, Policy Officer, FSB and Jonathan Walmsley, Public Affairs Officer, FSB. The session was recorded by Hansard.

Mr McNarry left the meeting at 1.07 am.
Mr McNarry returned to the meeting at 1.18 pm.
Mr Weir left the meeting at 1.18 pm.
Mr Weir returned to the meeting at 1.21 pm.
Mr McQuillan left the meeting at 1.30 pm.

Agreed: that the FSB will be afforded the opportunity to provide a further written submission to the Committee’s Inquiry as part of the forthcoming consultation with stakeholders.

Agreed: that any further issues which the Committee wished to raise in the meantime would be forwarded to the representatives of FSB for a written response.

8. Subordinate Legislation

The Committee considered the following statutory rule from DFP: Institutions of Further Education (Public Sector Audit) Order ( Northern Ireland) 2008. Members noted that the Committee had previously considered the draft proposal for this statutory rule on 19 November 2008 and was content with the policy implications of the proposed legislation.

The Committee noted that the Examiner of Statutory Rules had considered the draft statutory rule and had reported that no issues were raised from his technical scrutiny.

Agreed : that the Committee for Finance and Personnel has considered the Institutions of Further Education (Public Sector Audit) Order ( Northern Ireland) 2008 and recommends that it be affirmed by the Assembly.

9. Correspondence

The Committee noted the following correspondence:

• DFP: Update on Rating of Second Homes ;
• DFP: Response to Committee query on social housing inclusion as part of the Strategic Stocktake exercise ;
• Northern Ireland Human Rights Commission: Response to DFP paper 28 October on issues relating to the Presumption of Death Bill ;
• DFP: Response to Committee on bonus payments paid to senior civil servants;
• DFP: Response on potential shortfall following the outcome of September Monitoring Round ;
• DFP: Change of timetable for the December Monitoring Round;
• DFP: Departmental Financial Planning 2008/09 – December Monitoring Position;

Agreed : that an oral briefing session will not be required on 3 December 2008.

• Committee for the Office of the First Minister and deputy First Minister (COFMDFM): Analysis of Sick Absence in NI Departments 2007/08;

Agreed : that the correspondence will be forwarded to DFP for a written response;

• DFP: Update on progress against DFP Business Plan 2008/09 objectives;
• COFMDFM: Impact of the Economic Downturn on Employment in the Construction Industry;

Agreed : that the letter will be forwarded to the Minister of Finance and Personnel.

10. Committee Work Programme

Members considered the current draft of the Committee work programme until Christmas recess.

Agreed: that the programme will be published on the website.

The Committee was advised that the DFP briefing session on the policy aims of the Draft Rates Amendment Bill, currently scheduled for 3 December, will be put back to 7 January 2009. In addition, members were advised that the DFP briefing session on bonus awards to senior civil servants will be brought forward from 10 December to 3 December.

11. Any Other Business

Agreed : that the other Assembly statutory committees will be provided with a copy ofthe latest DFP correspondence on the Strategic Stocktake and will also be notified of the Hansard report of today’s evidence session on the Stocktake.

12. Date, Time and Place of Next Meeting

The next meeting will be held on Wednesday, 3 December 2008 at 10.00 am in Room 152, Parliament Buildings.

Mr Weir left the meeting at 1.49 pm

The Chairperson adjourned the meeting at 1.50 pm.

Mitchel McLaughlin, Chairperson,
Committee for Finance and Personnel.
3 December 2008

19 November 08 / Menu