COMMITTEE FOR FINANCE AND PERSONNEL
MINUTES OF PROCEEDINGS
SECOND MEETING
WEDNESDAY 15 DECEMBER 1999

The meeting opened at 2.00 pm.

1. Apologies

1.1 Mr John Dallat.

The minutes of the meeting on Wednesday 8 December were agreed.

3.1 The Committee agreed to consider the Allowances to Members of the Assembly and Office Holders Bill (NIA 2/99) and Financial Assistance for Political Parties Bill (NIA 3/99) at the next Committee meeting on Wednesday, 12 January 2000. The Committee agreed to consider the Assembly Members' Pensions Bill (NIA 1/99) at a Committee meeting on Thursday, 27 January 2000.

3.2 Members agreed that the sponsoring Member and officials responsible for the relevant Bill should be invited to give evidence to the Committee. The Commission sub-group (the Trustees) for the Assembly Members' Pensions Scheme also would be invited to give evidence on the Pensions Bill. Members agreed that they would decide if independent pension experts should be called to give evidence after they had questioned the trustees and officials. The Committee requested the membership details of the Senior Salaries Review Board.

4.1 No Statutory Rules were referred to the Committee.

5.1 Training: The training needs of the Committee were discussed.
5.2 Oral Questions: Members were informed of the arrangements for submitting oral questions.
5.3 Press Notice: The Committee agreed to issue the draft press notice (PN 22/99) in English. The Chairman would issue a further press notice in the Irish language.

6.1 Consideration was deferred until the next meeting.

7.1 Members considered the issues that should be raised with the Minister.

8.1The Minister for Finance and Personnel, Mr Mark Durkan, and his officials spoke to the Committee about the budget statement that he laid before the Northern Ireland Assembly on Wednesday, 15 December.

8.2 In response to questions from Members the Minister explained that the Executive Committee had agreed that the expenditure plans for public services in Northern Ireland, which were inherited by the Northern Ireland Assembly from the previous administration, should form the basis of the budget for 2000/01. The Executive Committee had decided that any consideration of a significant re-allocation of the overall £8.9 billion budget between Departments should await the finalisation of the Programme of Government. The United Kingdom Spending Review for 2000 would determine the overall amount that would be available for the next three year period. The overall allocation would normally be based on the 'Barnett' formula. The Minister explained that the plans submitted against the European Union Structural Funds did allow for some flexibility for adjustments.

8.3 The Department would consider what steps would be needed to ensure that Northern Ireland receives a fair and acceptable share of Public Expenditure. The Department would seek the support of the Committee and the Office of the First Minister and Deputy First Minister as necessary. It was important that any case put forward by the Department was based on value for money in the use of resources. The Minister acknowledged that this could involve the Committee and the Department considering what financial and quality benchmarks were needed to identify service improvements as a result of devolution.

8.4 The Department would explore how service improvements could be made within the current budget and would continue to stress the need for Departments to achieve value for money in their long-term expenditure plans. Resource budgeting would form the key part of the new financial management arrangements that are being put in place. Should the opportunity arise for in-year budget easements the use of surplus monies would be subject to Executive Committee approval. The Committee felt that it was important that the Department notified and consulted committees on the use of any easements. The Department explained that the urgency of decisions on easements might sometimes prevent prior consultation.

8.5 The Minister explained that the Assembly debate of the budget proposals would need to be scheduled soon if public bodies such as schools were to receive their allocations in time for the 2000/01 financial year.

8.6 He went on to explain that the Regional Rate was the only revenue measure under the control of the Assembly. The Regional Domestic Rate was due to increase by 8% and the Non-domestic Rate would rise by 5.3% over the next two years. The initial reason for these increases was in relation to planned expenditure on the water and sewage systems. However, it was explained that the Regional Rate now forms part of overall public expenditure and the use to which it is put would be a matter for the Assembly to determine. District Councils would, in turn, need to determine their expenditure requirements when setting the District Rate.

8.7 The Minister agreed that the rates were not a 'free' source of income and that they were a cost to families and to businesses. He acknowledged the role that a low level of Non-domestic Rate could play in attracting investment into Northern Ireland. There was a range of relief measures already in place for the Non-domestic Rate. For example, manufacturing received a total of £50m in relief each year although this did not target specific areas, such as small businesses.

9.1 The Committee agreed to meet on Wednesday, 12 January at 2.00 pm. The meeting would be in open session from 2.30 pm.

10. The meeting closed at 4.20 pm.

8 December 1999 / Menu / 19 January 2000