I am satisfied that the monitoring management arrangements that I have put in place are sufficient. That has also been stated by independent financial consultants. The Department has tight control over the allocation of resources from the Programme for Government, where my priorities for action are published and which sets out the key priorities for the service. The resources that are needed to deliver those priorities have all been ring-fenced this year, and no discretion is allowed for their deployment elsewhere.

Boards were required to set out in their service investment plans how they intend to deploy the additional resources. Similarly, trusts have to set that out in service delivery plans. There are regular progress meetings with the boards, which enable the Department to keep track of where the money is going. Should boards wish to redeploy some of the ring-fenced funds, they must first get the Department's approval. There is no room for complacency, and regular monitoring takes place, so the Department knows where money is being allocated and can keep track of it.

The Minister has stated that she does not believe that there is any need for further evaluation of the money that has been allocated to her Department. However, is she not appalled, despite the extra money, that there is still a crisis in the Health Service? When she was given an opportunity by a consultant in Craigavon Area Hospital, why did she refuse to observe the crisis at first hand? She ran away from the challenge rather than face up to the mismanagement that she has had -

Order. The Member will resume his seat. I am afraid that not only is the time up, but it is now well past. Therefore, we must bring to a close the questions to the Minister of Health, Social Services and Public Safety.

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Finance and Personnel

1.

asked the Minister of Finance and Personnel to give an update on the progress of the public-private partnership working group.

(AQO 588/01)

The working group commenced its review on 26 September 2001, with one steering group and four focus groups involving representatives from the public, private and voluntary sectors as well as trade unions.

The steering group has met twice; first, to initiate the work of the group and secondly, to review progress against its plans. The four focus groups have each met twice in one-day workshops in which a range of relevant issues was addressed. Among the many important sources of evidence and information being considered by the working group is a recent report from the Committee for Finance and Personnel on the use of public-private partnerships (PPPs). I am pleased to report that the group is on target to complete its final report by March 2002.

What criteria are used in assessing value for money for PPPs?

In assessing the value for money offered by a PPP solution, it is essential to evaluate the cost of service delivery on a whole-life costed basis. That is normally helped by the use of a public sector comparator, which provides a quantitative comparison of a private sector bid in a public-sector-funded alternative. However, in addition to quantitative factors, an assessment has also to be made on qualitative factors such as the value of risk transfers, any differences in quality of service delivery and differences in timing of service delivery.

I welcome Dr Farren to his first Question Time in his new role.

Public-private partnerships entail the use of public money also, and Northern Ireland's infrastructure needs massive investment. Our rail infrastructure highlights the problem that we face. In the light of the recent announcement of massive investment in the rail infrastructure across the water, is there a likelihood of consequential public funding for Northern Ireland?

In my response to Mr Alban Maginness's supplementary question, I outlined the criteria that are used to assess PPP projects with respect to particular types of scheme, especially that mentioned by Mr Hussey. Responsibility for such a project lies with the Department for Regional Development, which, in the light of such criteria as I mentioned, and together with officials from my Department, would assess whether PPP would be the appropriate approach.

Mr Hussey highlighted the need for considerable investment in infrastructure, including transport provision. The need for investment in transport infrastructure is receiving urgent consideration in the Department for Regional Development, and other Departments are considering such investment according to their areas of responsibility. In the light of our experience of PPPs and of the review on the issue, it is likely that they will continue to feature in the development of our infrastructure.

Go raibh maith agat, a Cheann Comhairle. I too welcome the Minister to the first Question Time in his new brief.

Will the Minister agree with the point made in the report of the Committee for Finance and Personnel's inquiry into PPPs/PFIs that the best way to provide public services in the present circumstances and financial climate is to use public money?

The reason for our examination of PPPs through the working group is to determine whether it is appropriate to avail of this form of financing for the provision of public services and infrastructure. If the finance were available from public sources, recourse to PPPs would not be necessary, provided that we could be assured of value for money. That criterion applies equally to PFIs.

2.

asked the Minister of Finance and Personnel if he will undertake to maintain the Executive's proportion of the rates levy within the bounds of inflation.

(AQO 552/01)

5.

asked the Minister of Finance and Personnel to indicate the income derived for each percentage point above the rate of inflation added to the domestic and non-domestic regional rate.

(AQO 553/01)

With the Speaker's permission I will take questions 2 and 5 together.

On 11 December 2001, the Assembly approved the Budget proposals for 2002-03, including increases by 7% and 3% in the domestic and non-domestic regional rates respectively. I have no plans to depart from those increases. Each percentage increase above the level of inflation in the domestic and non-domestic regional rates would raise an additional £1·1 million and £2·1 million respectively in revenue. A percentage increase in both rates would generate an extra £3·2 million.

I thank the Minister, and I wish to be associated with the remarks of welcome made to him by other Members. Does he agree that the rates levy is a highly inequitable tax, which hits hardest those who are least able to pay it? In the light of that, will he agree to examine other forms of local tax raising powers such as the local purchase taxes and income taxes that are levied in the United States of America? Will the Minister assess the potential of those taxes and, with the Assembly, approach the sovereign Parliament with a view to diversifying and making more equitable the tax regime?

Members will be aware that a review of the rating system is under way. At present, the Executive are considering moving to wider consultation on the matter. Issues of local revenue raising, such as those mentioned by Mr Bell, might be considered within the context of that review. However, I must point out that, under the Northern Ireland Act 1998, the Assembly and the Executive do not have tax-raising powers. Those might be necessary if we were to move to the forms of revenue raising to which Mr Bell points. There have been debates, both inside and outside the Assembly, on whether the Assembly should acquire such powers. Whether it is desirable that we should have those powers is a matter that rests with the Assembly in the first instance.

Does the Minister recognise that the current means of raising revenue through rates is a very broad brush and hits those who are most vulnerable in society? By raising the rate by 7%, as opposed to 3%, the Minister is gaining only an additional £4·5 million for his overall Budget of around £6 billion. However, it hurts many older and working-class people, who must put up with a 2% or 3% rise in their income. Will the Minister not review the matter now, instead of imposing a foreign tax upon the people of Northern Ireland?

The Member must understand that, having adopted the Budget only a month ago, we should not revisit it now. I accept the point that Mr Poots and Mr Bell made about the inequities that exist in the current rating system. That is one of the reasons for the current review.

Will the Minister confirm that the review of the rating policy, which was agreed by the Executive last year, will consider the question of the regional rate and the most effective way of ensuring a fair system of paying for public services?

The short and simple answer is "Yes". We must address that matter as widely as possible. It is to be hoped that we will proceed to the wider consultation on the question of the rateable base and the forms of local revenue raising of which we can avail ourselves.

As Mrs Iris Robinson is not present in the Chamber, question 3 falls.

4.

asked the Minister of Finance and Personnel to outline the likely impact on the Limavady local strategy partnership as a result of the proposed Peace II capita allocation for Limavady being reduced from that provided under Peace I funding and declared an interest.

(AQO 560/01)

Perhaps the Member would like to acquaint the House with the nature of the interest that he is declaring?

I am a member of the Limavady partnership.

My predecessor received proposals from the Special EU Programmes Body for the distribution of money available under measures 1 and 2 of priority 3 of the Peace II programme to the 26 local strategy partnerships in Northern Ireland. Proposed allocations were based on a formula consisting of three factors. First, there was the intensity of deprivation in each district council area; secondly, there was the scale of deprivation in the area; and thirdly there was the population of the area. This approach was consistent with the requirements of the Peace II operational programme as agreed with the European Commission, and it was applied consistently across the 26 district council areas. The resulting allocations to individual local strategy partnerships therefore reflect the needs of their areas as assessed in terms of population weighted by deprivation in comparison with other district council areas.

I thank the Minister for his answer, and I recognise the fact that he was not in place as Minister of Finance and Personnel when this matter was agreed.

The question is prompted by the fact that Limavady local strategy partnership (LSP) allocation has been reduced by 43% - £900,000 - the largest reduction of any partnership.

In total, £5·2 million has been reallocated from some of the LSPs. They are the most deprived partnership areas, and it has caused deep concern. Is the Minister satisfied that the reallocation is fair and equitable; that it has taken all of the indicators into account; and that it has been carried out with full and proper consultation?

I am satisfied that the formula as outlined has been applied objectively - as all formulas are intended to be applied. This exercise has been concerned with the allocation of money available under only two measures of the Peace II programme; local economic initiatives for developing the local economy, and locally based human resource training and development strategies. The programme contains a wide range of other measures, including a substantial allocation of almost £46 million targeted specifically at the rural economy and rural population. I point this out because the Limavady district would qualify for description as a district that includes a large rural area.

Further to this, under the building sustainable prosperity programme the Department of Agriculture and Rural Development will implement measures worth over £250 million targeted at agriculture, rural development, forestry and fisheries. Also the LEADER and community initiative programmes will be worth an additional £15 million to the rural sector. All of this reflects considerable emphasis on supporting the rural economy and its population in the new round of European structural funds.

Therefore, it is more appropriate that we consider the allocations being made in a wider context and not simply examine the allocations being made through one or two measures.

Does the Minister agree that the Peace I initiative allowed many worthwhile projects and initiatives to develop in the community development sector? Would he outline how he hopes the local strategy partnerships could have a longer-term impact, given that there is less quantum of money being allocated to some district councils under Peace II as compared with Peace I?

Members may recall comments made by my predecessor in that regard. I take this opportunity to thank those Members who conveyed good wishes to me in the course of asking their questions. My predecessor stressed the very point that Assemblyman Byrne is making: the local strategy partnerships, and the manner in which they are composed and work, can and, indeed, should establish ways of working at local level that involve both the statutory sector and the community, local government and all the other interests that have become involved in such local partnerships. There may well be a future for them beyond Peace II.

6.

asked the Minister of Finance and Personnel if he has any plans to reduce the payment of rates for centres of recreation; and to make a statement.

(AQO 570/01)

I have no plans at present to reduce rate payments for recreation centres. However, the current review of rating policy will consider all existing rate reliefs, including relief for sport and recreational facilities.

Equestrian centres should also be recognised as recreation centres. There is an opportunity there to create a product that could be exported worldwide. Will the Minister consider a way in which equestrian centres could also be exempt from paying rates, or at least entitled to some relief? The current rates are strangling those leisure centres. The equestrian industry should be recognised and rightfully supported. The industry would more than compensate for any loss in rate revenue.

I am not sure that I took in all the points of that supplementary question, but I remind Members that existing legislation permits rate relief on any hall that is used by the wider community. The degree of available relief is in direct proportion to the use of the facility for charitable and broad community purposes. As I said, the review of rating policy will include consideration of all existing reliefs.

Will the Minister consider giving some help and assistance, through rates reduction, to Orange halls, which are clearly centres for the community? Many halls have been used for meetings of the Women's Institute, church meetings, farmers' club meetings, dances and parties. Some Orange halls have been used for Irish dancing. Will the Minister consider Orange halls for rates reduction, as they clearly fit into the cross- community category?

In my response to Mr Armstrong I indicated the general framework within which rate relief is possible. If the framework applies to any particular type of hall, bearing in mind the nature of the uses made of the hall, it may well be that the framework may be applicable to halls managed by the Orange Order.

7.

asked the Minister of Finance and Personnel how the NICS human resources strategy will address the fundamental need to meet the challenges arising from the establishment of the Northern Ireland Assembly and other political institutions and the interface with public representatives and the public on draft legislation and policy development.

(AQO 593/01)

The Northern Ireland Civil Service human resources strategy, which was recently cleared by the Executive through a written procedure, provides a framework for taking forward the corporate human resource policies and practices that are needed to support the rapidly changing business environment in which the Northern Ireland Civil Service operates.

To ensure that the strategy meets the challenges arising from the establishment of the Northern Ireland Assembly and other political institutions, and the increasing expectations of stakeholders and customers in a rapidly changing business environment, the framework will be underpinned by a rolling human resource strategy action plan. The plan will be based around the four key themes of the strategy: resourcing, learning, inclusion and leadership. The action plan is being developed and will be the subject of consultation with all Departments and the Committee for Finance and Personnel. The action plan will be monitored and evaluated on a regular basis.

I join other Members in welcoming the Minister in his first sortie with the Finance and Personnel portfolio. I wish him the best for the future in his role.

Given the stated aims of the Programme for Government in respect of this piece of work in the human resources strategy, would it be appropriate for the Minister to acknowledge that even at this stage, while the work is in hand, senior civil servants should be reminded that there is now a new situation? Ministers are locally elected, and there are locally elected representatives. I refer specifically to a recent situation in south Belfast in which staff from the Water Service completely ignored local community organisations' calls for consultation. While the work outlined by the Minister goes on, it would be worthwhile reminding civil servants that they have a responsibility to those elected representatives and to community organisations in those areas.

Mr Maskey will appreciate that I am not in a position to comment on the particular instance to which he referred or to what might lie behind it with respect to the general issues raised in his question. However, the answer to his general point is that yes, certainly, the Civil Service is aware of the changing environment, of the demands that have been made by the changes that have taken place over the past two or three years and of the general cultural changes which are consequential to the political changes. That is also my experience of it. From my short Ministerial experience up until now, I want to acknowledge that there is a high level of consciousness in the Civil Service of the nature of those changes and of the consequences in operation, culture, general attitude and outlook following from them.

8.

asked the Minister of Finance and Personnel what progress has been made in respect of the Inter-Regional III Programme.

(AQO 581/01)

After taking account of the European Commission's comments, the INTERREG operational programme was resubmitted to the Commission in November 2001 and was agreed by the Commission at the end of December 2001. Confirmation of its formal adoption is expected by mid-February of this year.

The Special European Union Programmes Body's managing authority is now developing the programme complement, including more detailed information on the measures and activities and the selection criteria for projects under the programme. In keeping with the recommendations of the action team's report, which was approved by the North/South Ministerial Council in April 2001, the border corridor groups will have a minimum allocation of some £27 million to implement three measures under priority 1 of the programme. Those are integrated local development strategies that incorporate measures for economic and business development, the knowledge economy, human resource development and skilling.

I thank the Minister for his reply and join with others to welcome him to his new position, in which I am confident he will excel.

What is the next stage in the development of the programme? More importantly, when does the Minister expect calls for projects to be made?

The next stage in the development of the programme is the programme complement. That must be completed and agreed before calls for projects can be made. The programme complement contains more detailed information on how the money allocated to the programme will be spent and must be completed by the Special European Union Programmes Body within three months of the formal adoption of the programme by the Commission. It is therefore expected that calls for projects will begin to be made in April or May.

9.

asked the Minister of Finance and Personnel if the current review of rating policy will address the rating inequalities for small indigenous businesses to enable them to compete with larger retailers.

(AQO 543/01)

The current review of rating policy will consider whether small businesses should receive rate relief. It will also consider the impact that any change in the basis of evaluation may have on that sector of the economy.

I too congratulate the Minister on his appointment. Will the review of rating policy give necessary consideration to the fact that many small businesses have closed, especially in the Foyle constituency, because they were unable to compete? Will it address the serious question of inequality?

I emphasise that the review of rating policy, which has been referred to several times, is being driven to a considerable extent by a clear realisation that there are inequities in the present system. The Executive are anxious that those should be eliminated. If small businesses are affected by inequities, that is a matter for the review to address - in what format remains to be seen.

10.

asked the Minister of Finance and Personnel what plans he has to ensure reports prepared by the Comptroller and Auditor General are agreed by Departments in the shortest possible timescale; and to make a statement.

(AQO 583/01)

It is important that Departments agree reports that are prepared by the Comptroller and Auditor General as quickly as is practicable. Although the time taken to agree those reports is of great importance, of equal importance is the need to ensure that they are factually correct before being laid before the Assembly and considered by the Public Accounts Committee. That is a vital element of the accountability process.

Time is up for questions to the Minister of Finance and Personnel so Mr Dallat will not be able to ask a supplementary question.

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Private Notice Question: North Belfast

This morning, at the commencement of business, a Member asked me about recognising the terrible events in north Belfast in the past week and the murder of postman Mr Daniel McColgan. I advised the House that discussions were under way on the best way to recognise those matters - not merely as a reflex action, but in a considered way.

There are a number of procedures through which the House could properly address such a matter with urgency. An emergency motion is not a possibility, as Members know from our procedures. However, one possibility is a private notice question, which is, in effect, an emergency question. It is possible, if a question is put down, in this case to the Office of the First Minister and the Deputy First Minister, for the Speaker to accept that question to be answered on that day.

However, in the normal course of events, there is one disadvantage with that procedure. Normally, it is only the Member who puts the question down who has the opportunity to ask a supplementary question. On occasion, the Chairperson of the relevant Committee may also be permitted to do so. However, in discussions with the Office of the First Minister and the Deputy First Minister, there was clearly a sense that, as this was an occasion of such gravity, we should depart from the normal conventions and give the Member who put down the question, and other Members from the North Belfast constituency, the opportunity to put a supplementary question to the First Minister and the Deputy First Minister.

I trust that the grieving family, friends and colleagues of Mr McColgan will understand that in doing that, the Assembly has moved away from normal procedures and conventions because of its wish, not only to recognise the matter - and not only to do so in silence - but to say something and to recognise what has happened.

asked the Office of the First Minister and the Deputy First Minister what initiatives it is taking to address the terrible situation in North Belfast, which has resulted in pupils of Holy Cross Primary School and other school children suffering sectarian harassment, intimidation and serious threats to their safety.

I would like to express my horror and disgust at the return of sectarian violence to the streets of Belfast, and in particular, at the murder of Daniel McColgan in Rathcoole. I speak on behalf of the Deputy First Minister and, I am sure, the entire Assembly. Such sectarian attacks have no place in a civilised society, and we condemn those responsible. In the past few days we have seen widespread street disturbances. Much of the violence has been focused on the security forces. Attacks on school property have spread across the area, and threats have been made against teachers and other school workers. Such threats against people who serve the community are totally reprehensible.

All children have the right to go to school, free from the threat of violence and intimidation. No grievance justifies the denial of that right, and no cause can be advanced by it.

Security and policing are the responsibility of the Northern Ireland Office and the police. We, like the rest of society, want to do everything that we can to assist. The Executive remain committed to doing all that they can to resolve the situation. Members will recall that a series of measures were announced in November and December, including a North Belfast Community Action Project; improvements to housing; traffic calming measures; educational measures to address the immediate needs of schools in the area; and steps to rebuild community relationships and support vital youth services. We are determined to advance those measures as quickly as possible. Members - especially those from North Belfast - will be aware of the work that our officials are doing on behalf of the Executive to ensure that those measures are introduced urgently. Members will also know that the Minister of Education met representatives from a wide range of educational interests this morning. In addition, the Deputy First Minister and I met a delegation from the Irish Congress of Trade Unions (ICTU). We understand the concerns that were raised by those organisations on behalf of their members.

The key to tackling the underlying division is dialogue. We are conscious of the sensitivity and delicacy of the situation. However, one basic truth is that everyone must advance together, if another cycle of hatred and violence is to be avoided. We are prepared to offer any assistance necessary to support a process of dialogue, but ultimately it is up to local community interests to grasp the opportunity.

I send my condolences to Daniel McColgan's family. I thank the First Minister for his answer. I am aware of the North Belfast Community Action Group and its six-month remit. We have met with that group. David Trimble acknowledged that the local MLAs were doing their best to deal with the situation.

The problem is too immediate to be dealt with by that group's remit. There is a Loyalist commission, that was given some fanfare a while ago, which involves the UDA, paramilitary groups, church leaders and members of the UVF.

Have the First Minister and the Deputy First Minister been involved in talks with them? Do we know what their intentions are? There is now a threat to all Catholic workers in north Belfast, and people are worried about what will happen in the immediate future. What pressure can be applied to them? It is not down to the British Government alone to apply pressure. There is little confidence in what they have done, after 300 bomb and gun attacks on Catholics. There is a worry about what we are doing, and about what people of influence in the Unionist community are doing, to try to prevent those attacks on our people. Has anyone spoken to the Loyalist commission? Do we have actions that would "out" them, or force them to speak publicly on the matter and to withdraw the threats against Catholics in that area?

I join Mr Kelly in extending sincere condolences to the McColgan family and to all his colleagues in the postal service. Mr Kelly is aware, as are the other Members for North Belfast, of the work that officials from the Office of the First Minister and the Deputy First Minister have carried out, and of how that relates to the work of other Departments. Security and policing are not the responsibility of the devolved Administration. However, I have no hesitation in expressing my support for effective policing action against the threats and attacks, and the organisations that are responsible for them. I hope that everyone in the House shares that view.

It is important to recognise that the most effective way in which Members can bring pressure to bear on the situation is by speaking with one voice. It is important that we try to do so on this occasion, despite the fact that there will be differing interpretations of the problem and that people will focus on different aspects of it. We must make it clear that we reject those who are behind the attacks and threats. Such attacks should not be seen as having been made on one section of the community, but rather as an affront to the whole community. I hope that the political representatives in the Chamber will make that clear.

I have had no direct engagement with the Loyalist commission. The First Minister and I issued statements at the weekend, not only condemning the murder, but calling specifically for the lifting of the threats against teachers, other education employees and postal workers. I am sure that this afternoon's exchange will prove that we speak not only for ourselves, but for the entire body politic in the Chamber.

I am sure that Members for North Belfast are grateful that a ruling has been made to allow other Members to ask the Office of the First Minister and the Deputy First Minister supplementary questions. I wish to reiterate what I know to be the view of all right- thinking people in north Belfast and further afield: the callous, brutal and unjustifiable murder of Danny McColgan is not only a terrible tragedy for that young man's family, it serves to raise real fears and tensions in both sides of the community in north Belfast and beyond. Nothing can justify such a murderous attack.

I am sure that the Office of the First Minister and the Deputy First Minister will agree that the threats that have been issued and the attacks that have been carried out on vital workers in a range of services are deplorable. Those who issue such threats are not doing so on behalf of the majority; almost everyone in society abhors such activity.

Furthermore, will the First Minister and the Deputy First Minister accept, unlike Mr Gerry Kelly who tabled the question, and who only referred to Holy Cross Girls' Primary School, that the Assembly is already on record as saying that all school children, Protestant and Roman Catholic, must be protected as they go to and from school, and while they are in school. Can we make it absolutely clear - [Interruption].

Order. Mr G Kelly has a point of order. I believe I know what the point of order is, but I shall allow him to make it.

The question did refer to all school children, even though Holy Cross was mentioned.

It was the case that it included more than the school children of Holy Cross - it included other children.

Only one school was mentioned. The Assembly is already on record as saying in a previous debate that all school children, Protestant and Catholic, must have proper protection on the way to and from school, and while in school, and that goes for staff as well. Today there has been a bomb threat against the Boys' Model School from an organisation using a recognised code word. Likewise, we have seen children from the Protestant community threatened and their rights abused.

Therefore, I ask the Office of the First Minister and the Deputy First Minister to ensure, in its talks with the security forces and the Northern Ireland Office, that there is equality of security for everybody in north Belfast - adults and children alike - and that a number of issues raised by Members from that area about CCTV and proper resources for policing in the flashpoint and interface areas are endorsed strongly by them. Wearing my ministerial hat, I also express my support for the work going on through the community action project.

I thank Mr Doods for his question and, indeed, for his general comments condemning the murder and deploring the threats made to all schools. As the wording of the question suggests, we are discussing the issue in the context of school children in north Belfast generally, and are aware that it is not only one school or segment of the community that faces threats and attacks - unfortunately, they happen in general. One of the depressing aspects of last week's events was how serious trouble quickly developed from very small beginnings - very small incidents. The speed with which riots developed and threats were extended is disturbing.

We also note that threats to emergency services, especially the Ambulance Service, were in existence before last week's events, and the threats to other public servants have simply reinforced the matter. We do have a degree of contact with the security forces. Mr Dodds will have noted the comments made by Assistant Chief Constable McQuillan today, in the course of an interview on the situation, and we hope that his confidence about the ability to deal with it is well founded. Like him, we are glad that there has been a relatively quiet weekend, and we hope that that will hold true as we go into the week.

Resources for policing are a matter for the police. CCTV has been mentioned, and I understand that the police are looking for the best location. The presence of CCTV in other circumstances, and in other places, has made a significant contribution. Of course, this is an operational matter for the police, but if it comes within our purview, we will do all we can to assist.

Mention has been made of the Loyalist commission. Members will have seen the full text of a statement issued by the commission in the 'News Letter' this morning and will welcome the express call in that statement for calm and an end to street confrontation. I am sure that we would all like to see that.

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