RESPONSE TO THE OFFICE OF THE FIRST MINISTER AND DEPUTY FIRST MINISTER'S REVIEW OF THE NORTHERN IRELAND ECONOMIC COUNCIL AND THE PROVISION OF INDEPENDENT ECONOMIC ADVICE AND RESEARCH

1. What are the policy areas in which your committee has shown an interest?

Careers Education and Guidance
Employment policy issues
Further Education
Higher Education
Innovation
Lifelong Learning
PPP/PFI
Research and Development
Student Finance
Training, including vocational training and qualifications

2. How does your committee inform itself on key issues and arguments in relation to these policy areas?

Research papers from Northern Ireland Assembly Researchers
Research reports and information from a wide range of sources
Written and oral briefings from departmental officials
Written and oral briefings from specialist advisers
Written and oral briefings from interested organisations and people (especially constituents)
Summary papers from the Committee Office

3. What role does independent external economic research/advice have in informing your committee?

Independent external economic research and advice from many sources is widely used in the Committee's responses to consultations, issues referred to the Committee by the Department of Higher and Further Education, Training and Employment and responses on cross-cutting issues to other Committees of the Northern Ireland Assembly. Many of the issues addressed by the Committee for Higher and Further Education, Training and Employment have a significant effect on economic aspects.

4. What are the main sources of external research/advice to your committee? (This covers both local sources as well as those from outside Northern Ireland; it also includes both research/advice commissioned directly by the Committee as well as research which comes to it as a 'free good' from an external source including Government Departments.)

• Research reports of Northern Ireland departments and other public bodies.
• Research reports of United Kingdom Government departments and other public bodies.
• Research reports of Republic of Ireland Government departments and other public bodies.
• Research reports produced by local universities and academic institutions further afield.
• Reports produced by Northern Ireland Economic Council (NIEC) and Northern Ireland Economic Research Council (NIERC).
• Reports produced by a wide range of private sector organisations and umbrella bodies.
• A number of international bodies eg Organisation for Economic Co-operation and Development (OECD).
• Specialist advisers have produced research papers on specific areas of the Committee's work.

5. Who do you perceive to be the most useful providers of economic policy advice to your committee? Can you provide reasons for your answer.

As a result of the wide range of economic related policy issues considered by the Committee for Higher and Further Education, Training and Employment different sources will have specific reference for individual issues. For example in the Committee's current Inquiry into 'Education and Training for Industry' the Committee have made extensive use of both the NIEC and NIERC. Both organisations have given both written and oral evidence. Considerable use has been and will be made of their various published reports in the compilation of the Committee's report.

Both the organisations are excellent sources of independent, focused information and advice on current and future issues, which impact on economic policy areas within the remit of the Committee.

6. Has your committee commissioned external economic advice? If so, can you provide
examples?

Yes, economic advice was commissioned for our Inquiry into Student Finance. This was published as an integral part of the Report.

7. Can you give (up to five examples) of non-commissioned independent economic research, which your committee has found useful? What made them useful?

NIEC - The Knowledge Driven Economy: Indicators for Northern Ireland, (April 2001)
Forward looking with key indicators and messages to steer future policy within the Committee's remit. Very good and meaningful statistics set along appropriate benchmarks for similar regions.

NIEC - The Capabilities and Innovation Perspective: The Way Ahead in Northern Ireland by Michael H Best, (December 2000)
A specific local focus with examples of best practice to benchmark our current and future achievements.

NIERC - Innovation and E-Commerce: A Cross Border Comparison of Irish Manufacturing Plants. Very good comparative information to assist policy analysis, direction and development.

NIERC - A study of the Northern Ireland Labour Market for IT Skills. (August 2000). Another very good piece of work to influence policy decisions within the Committee's remit.

OECD - Education Policy Analysis. (2001) An overview of key educational and skills development issues with many comparisons between countries.

8. What is your perception of the respective roles of the Northern Ireland Economic Council and Northern Ireland Economic Research Centre?

NIEC is an independent advisory body with a wide remit to provide independent advice on the development of economic policy for Northern Ireland. The make up of the Board reflects the reorganisation in the 1960's on tripartite lines of government, trade unions and business.

NIERC is an independent inter-disciplinary research unit, which conducts primary research on the Northern Ireland economy and a wide range of contract research. Also carries out economic forecasting.

The Committee is aware of some informal links between the two organisations eg NIEC consults with the NIERC, when producing its forward work plan. The outputs of the two organisations both assist the Committee for Higher and Further Education, Training and Employment in carrying out its statutory duties, as set out below:

Scrutiny role of the Department;

Policy aspects of legislation;

Advice to the Minister on formulation of policy; and

Conducting Inquiries.

The overall perception is that they are working in the same general area.

9. How important to the work of your committee on a scale of 1 to 5 (1 being unimportant and 5 being extremely important) is the continuing availability of economic research from each of the following? Please provide reasons for your answers.

Northern Ireland Based Consultants - 3 to 4
Sometimes they are expensive and 'short-termist'.

Northern Ireland Economic Council - 4

Northern Ireland Economic Research Centre - 4

Northern Ireland Universities - 3 to 4
Somewhat pushed off the regional economy agenda by RAE.

10. Are there any areas in which you feel there is insufficient provision of economic advice?

Whilst many of the reports referred to above have a forward predictive element or focus it would be the overall opinion that a much more co-ordinated emphasis on forward predictions of economic trends should be undertaken. In addition, the mechanisms must be put in place to ensure these predictions are freely available and presented in an easily understood format. Furthermore, the Committee accepts that whilst forward predictions may lack accuracy, we also emphasise that the accuracy can be improved with time and experience. It is vital that cross-cutting issues between different parts of the Executive are included in these forward prediction models. Two suggested areas of future work are given below;

The efficiency, effectiveness and value for money of the Northern Ireland Public Sector.

Factors associated with dealing with 'full employment'.

11. Do you feel that the demand for independent economic advice from your committee will increase over the next 2/3 years? If so in what areas and what do you think it will satisfy this demand?

Yes, as the Committee develops and examines specific areas within its remit in greater detail, demand will increase considerably. All the areas will come under greater detailed scrutiny. This demand will be satisfied by closer examination of current information as well as specific requests for detailed analysis of areas under examination. This analysis will be supplied by both the Northern Ireland Assembly Research and Library Service, the appointment of specialist advisers as well as further in depth use of research reports and information.

12. Have you any views in relation to the current structure of economic policy advice provision in NI especially in relation to NIEC/NIERC and how it could be improved?

The emphasis must be on greater co-ordination between the NIEC, NIERC and all the other units within departments. In particular, more research is needed on the performance and structure of the regional economy. Furthermore, the focus on future trends and the quick feed back of this information to policy development is essential for optimum economic development. Currently the perception is that units within departments focus on the production of historic data. Greater emphasis on producing the material in easily understood formats, including greater use of Information Communication Technology is essential.

13 Have you any other comments which you wish to add to those already made to the above questions?

The Committee considers that it is essential that there is independent economic research available to the Assembly, its Committees and elected Members.

Government departments could do more to encourage the demand and hence supply of such research. The Strategy 2010 document was notable for the lack of reference to independent economic commentators. The incentive structure in the two local universities may not encourage enough economic and social research on the region.

However, as part of your review the Committee for Higher and Further Education, Training and Employment would wish to see a detailed quantification and costing of all parts of Government producing data, information and forward predictions. Secondly, the formal and informal links between these units should be clearly set out.

Esmond Birnie

Dr Esmond Birnie, MLA
Chairman
14 June 2001

Meeting minutes of 14th June 2001