Oral Answers to Questions

Enterprise, Trade and Investment

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Question Time has been somewhat delayed by the requirements of the two Divisions, the Question having been put before the moment of interruption. I now direct Members' attention to questions to the Minister of Enterprise, Trade and Investment. Question 3, in the name of Mr McGrady, has been withdrawn and will receive a written answer. Question 10, in the name of Mr Campbell, has been withdrawn but does not require a written answer.

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1.

asked the Minister of Enterprise, Trade and Investment, in the light of his policy to develop natural resource rural tourism, how much funding is available for the development of the Causeway Centre in North Antrim.

(AQO 1294/01)

I want the Causeway Centre to be adequately resourced to ensure that it meets the standards that we all feel are essential, but it is premature at this stage to discuss what specific level of funding support might be available from my Department, or from Government in general. Naturally, any specific proposal is subject to an application and appraisal process.

In the early 1980s, Moyle District Council took a risk in building a visitors' centre at the Giant's Causeway. The centre has been successfully developed and operated to the point where it is probably the only visitors' centre in Northern Ireland that does not depend on any operating subsidy from the ratepayer.

In the development and management of a new centre at the causeway, why does the Department require the council to bring in third parties? Has the plan of action for dispensing natural resource rural tourism funding been clearly developed between the Department of Enterprise, Trade and Investment and the Department of Finance and Personnel so that action on the ground is immediate?

Members will recall that an accidental fire destroyed the centre two years ago, which was a matter of deep regret. I visited the council shortly after the fire, as the Member knows, and expressed my view of the way ahead. It was intended that a state-of-the-art centre be built on the existing site. I understand that Moyle District Council wants to protect the revenue streams that it receives from car parking and operation of the site, which is only to be expected.

I also told the council that I supported what it wanted to do because, like the representatives of the area, I was paying particular attention to the council's wishes. There are several funding sources. There is the plan of action on rural tourism, for example. The Environment and Heritage Service is interested, as is the Northern Ireland Tourist Board. There may also be a European dimension. A range of potential funding is available. Unfortunately, considerable time was lost because of the best value exercise, which held progress back somewhat.

The council has decided only in the past few weeks that it wants to proceed. Indeed, my officials will meet the council tomorrow. We are anxious to move forward. It is the largest attraction on the island. It has huge potential, and we must make progress. I am very keen that we get it right. Many people are coming into the market with other ideas, and the council should co-operate with the Department in getting the matter started. I hope that it will be possible to commission work soon, and I reiterate my support for the council's intentions.

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2.

asked the Minister of Enterprise, Trade and Investment to detail the number of inward investment companies that have visited Knockmore Hill Industrial Estate in each of the past three years; the number who have chosen to establish factories at the site; and the number of jobs which have been created at the estate.

(AQO 1277/01)

One inward investment company visited Knockmore Hill Industrial Estate in the year ending 31 March 1999. Another visited in the year ending 31 March 2000, with a further three in the year ending 31 March 2001. Two indigenous companies are operating at the park, and they have created 85 jobs.

I am very disappointed that only five companies visited the site. Of the four available sites, this is the only one that has a 30-acre land bank that could incorporate large-scale business development. In view of the Belfast metropolitan area plan, which will bring more housing into the Lagan Valley constituency, and the possibility of further development at the Maze Prison site, can the Minister assure the House that Invest Northern Ireland will give some real impetus to establishing large-scale companies on the Knockmore Hill site and to creating jobs in the Lagan Valley area?

The Member will know that my Department cannot dictate to investors about where they will locate their businesses. Two companies are due to locate in Knockmore Hill Industrial Estate; one factory is nearing completion, and building work has commenced on a second. When they are fully operational, 79 jobs will be created, in addition to those already mentioned.

As regards the Belfast metropolitan area plan and the Maze, there is a wide range of possibilities. It is frustrating for many Members to see vacant sites, but we have been fairly successful in filling vacancies. Some of the advance orders for factories that we had - facilities for which I was criticised and put under pressure to let go to make room for carpet warehouses and such like - have resulted in premises being filled in the last year.

I am confident that the location, nature and quality of the Knockmore Hill site will prove successful in the long run. There is an active work programme, and such things tend to gain their own momentum. The Member and I want further jobs to be brought into the area, and I am satisfied that the people already there and the work under construction will achieve that.

I am tempted to substitute Dublin Road Industrial Estate for Knockmore Hill Industrial Estate, but I will not.

If the Member were to, he would be ruled out of order.

Thank you. How many industrial estates formerly owned by the IDB have been transferred to private ownership? What is their status within Invest Northern Ireland? Who is responsible for ensuring that privately owned estates are kept up to standard? There is a difficulty with the Dublin Road estate in Strabane.

I would instruct the Minister not to respond to the last question.

I cannot give the Member a precise answer, but I will write to him. In general, estates owned by Invest Northern Ireland are primarily for the use of former IDB and LEDU client companies.

Those people had first refusal on any site anywhere in Northern Ireland. Client companies still have first refusal. With reference to Mr Poots's question, several people have shown interest in the Knockmore site, but Invest Northern Ireland did not consider their proposals appropriate for a quality site such as that. I shall find the details that the Member requested and write to him. If he wishes to ask me questions on other locations, he will have a future opportunity to do so.

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4.

asked the Minister of Enterprise, Trade and Investment what assessment he has made of the impact of industrial derating on the Northern Ireland economy.

(AQO 1296/01)

Derating is a useful marketing tool to attract inward investment, and it provides some compensation to eligible companies for the higher energy costs which apply in Northern Ireland. However, a consultation exercise on the future of the rating system will take place soon, and any views on industrial derating will be welcomed for consideration.

Does the Minister agree that the derating initiative is an incentive for business investment? The recent suggestion of abolishing derating for industry has caused real concern and uncertainty among companies. Given our already high electricity, water, transport, insurance and waste disposal costs, and the proposed increase to the National Insurance contribution, it poses a threat to future employment here. The suggestion of derating for industry should be thrown out, thus giving our industries a level playing field, bearing in mind the incentives in the Republic of Ireland.

I have raised that issue, and the Committee for Enterprise, Trade and Investment has written to me about it. I am acutely aware of many companies' views. However, if there is a review of rating, all aspects must be open for consideration - none can be excluded.

Derating currently costs £61 million. A sensible review of rating will not take place until light is shed on the rights and wrongs of derating. I am aware of the points that the Member made, and I hope that, when the review commences, he will make his views known. The Committee and my Department make their views known, and the sectors that the Member referred to will have the opportunity to advance their views also. The fact that the matter is being considered does not mean that an outcome has been determined. A range of issues must be considered.

I understand the Member's concerns. Corporation tax comes to mind immediately. People argue that we have a much higher rate of corporation tax here and that derating is a form of compensation both for that and for the other costs to which the Member referred. I hope that those matters will be fully fleshed out during the consultation.

Will the Minister comment on the geographical valuation of the impact of industrial derating? Has it benefited Strabane and other parts of west Tyrone?

The geographical valuation, as well as TSN and equality issues, will inform the consultation exercise. The Member mentioned Strabane. The process would significantly benefit that council area. There are some substantial industries in the Member's area that would benefit. The geographical distribution of the assistance must be considered.

A significant view must also be taken of the equality aspects of the assistance. My Department has commissioned all of that work, and that will form part of our input into the consultation.

The Minister will agree that industry needs all the help that it can get. Does he further agree that prohibitive rates for renewal of employer's liability insurance also have a negative impact on companies in my constituency, as demonstrated by last week's announcement by Contex Ltd? What is the Minister doing to address that?

Several Members have raised questions of insurance with me, and I am sure that it affects everybody in the House. The events of September 11 have clearly had a major impact on that industry. Matters that concern Northern Ireland and its system for compensation, as well as what some employers would describe as a "claims culture", have also had an impact. I am aware that insurance was a contributory factor in the case to which the Member refers. As insurance is a reserved matter, I have been in contact with Ruth Kelly, the Economic Secretary at the Treasury, on several occasions, and my Department is also assessing exactly what is happening in industry and commerce in Northern Ireland as a direct result of insurance issues.

Several Members have written to me in the past few weeks - they are obviously getting feedback from constituents who are suffering. A wide range of subjects are involved; it is not confined to employer's liability. However, you cannot operate without employer's liability insurance. In some sectors, such as construction, few people are prepared to offer cover. I have involved the Northern Ireland Office, as we may be required to look at how compensation is dealt with. It is dealt with differently here than in Great Britain, and we must examine that. I assure the Member that that work is continuing.

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5.

asked the Minister of Enterprise, Trade and Investment whether he plans to consider the issue of public bonds for the buyout of electricity contracts.

(AQO 1297/01)

In line with my statement during the Assembly debate on 5 March 2002 on the Committee for Enterprise, Trade and Investment's energy inquiry, my officials and the regulator are urgently examining all practical options for inclusion in an action plan for bringing about worthwhile and sustainable electricity price reductions.

I wonder how thoroughly public bonds have been explored as a way to raise capital, not only for the generation contracts but for other issues. Will the Minister tell the House the position of the British Treasury on bonds? Go raibh maith agat.

The Member may know that the Treasury generally feels that it is private-sector companies that issue bonds. However, we have been looking at bonds for some time, and the Member will know that the Committee for Enterprise, Trade and Investment and my Department have been examining the matter.

The truth is that as we try to identify issues and areas where we can bring some pressure to bear on electricity prices, we are desperately searching for the right approach. I have spoken to consultants, and held discussions with the Committee, which has done a substantial piece of work on energy in general, and we will reach a conclusion in the next few weeks on the steps that we can take.

Leaving aside the technicalities, the big issue is whether we will effectively be mortgaging the debt to the next generation. We are buying out those dreadful contacts that were signed during privatisation in 1991 and then effectively smearing that debt over the next 30 years. We are now almost halfway through the contracts. We must make our minds up about these matters over the next few weeks. I do not wish to commit myself to an answer in advance of making a statement to the Assembly on the whole picture. However, several events will take place. For example, the regulator is currently conducting a review of the transmission and distribution systems of Northern Ireland Electricity (NIE). He has made recommendations, and after receiving feedback, he must make a final determination. If that is disputed, it may be passed to the Competition Commission. I have been considering every way in which we could put pressure on the market to reduce prices, but I am not prepared to commit myself on this issue today.

An increased provision of gas might have a negative effect on electricity prices. Will the net impact of the capital cost of building pipelines in the Province and interconnections to the Republic or Scotland be to raise the final price to the consumer of electricity?

This is a complicated issue. The report showed that postalisation will cause prices to rise, and we calculated that they would rise by a maximum of 1·64%. However, the Member must also remember that one of the key elements of any electricity bill is the cost of generation. That cost represents 80% of the bill for the industrial market and 60% for the domestic market. One element of that cost is a direct fuel cost. The new gas plant, which will be part of the overall deal at Coolkeeragh, means that there will be a new state-of-the-art generating station, which will be more efficient. Together with the new plant that will be commissioned at Ballylumford by the end of the year, the net effect of the new equipment will be to save fuel and therefore save on price.

The Member will also be aware that the Executive's decision to proceed with the pipeline proposal, which the House and the Committee supported, is being challenged by oil suppliers. Although they have the right to do so, the oil industry is unregulated, whereas the gas and electricity suppliers are regulated heavily. We must be aware of this matter and watch developments closely. The oil sector is trying to refer the matter to the European Commission. If we are not careful, that could significantly delay our proposals and therefore maintain higher prices for longer. It is unfortunate that an unregulated sector is pointing the finger at a regulated sector.

I agree with the Minister about the intervention of the oil distributors' association, but I would go further. Does the Minister share my anger and concern at its outrageous attempt not only to obstruct, but also possibly to wreck, the gas pipeline project?

I intend to see that the project is not wrecked. It was the will of the House and the Committee for Enterprise, Trade and Investment, and an enormous amount of work went into it. We have not yet determined what source we will use to finance it. We have several options, and European support is one of them. The oil sector considers the project to be anti-competitive. Thirty-five per cent of funding for the electricity interconnector came from Europe, and the Scotland to Northern Ireland Pipeline (SNIPS) also received European assistance.

Those are two major infrastructure projects. I see the gas pipeline and the provision of Coolkeeragh as a major piece of strategic infrastructure, and it is unfortunate that people have chosen to challenge that. Both these industries are highly regulated, yet the oil sector is not, and the public needs to bear that in mind. It is unfortunate that people are attempting to thwart what is clearly the will of people for a strategic decision. Many jobs are at stake, and over £200 million of investment in Londonderry alone is at stake. We have to realise that we are playing for very high stakes.

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6.

asked the Minister of Enterprise, Trade and Investment for his assessment of the suitability of the industrial development site at Creagh, in the Magherafelt district, as a strategic employment location.

(AQO 1275/01)

The regional development strategy for 2025 envisages the provision of a limited number of strategic employment locations. An interdepartmental working group has been established with the aim of identifying the actual number and locations, but no strategic employment locations have yet been identified.

The Minister will know that there is a prospective need for this type of employment. Has he instructed Invest Northern Ireland to commence a programme? Will the Minister support the designation of an industrial site at Creagh as a strategic employment location?

I am well aware of the Creagh site. The Member has raised this with me before, as have other Members. Indeed, I am shortly to see a delegation led by another Member about this site.

The Department has not yet decided to support any site. However, I can say that the site development at Creagh is well under way, with initial site clearance and the enabling contract nearing completion. It is planned that sites will be available from this autumn at Creagh, and a number of business interests have been recorded already. This is one of the issues being considered with regard to the area plan. I will have to withhold giving the Member a categorical assurance until we see the overall picture, and we must also have regard to the local area plan.

I have already spoken to the Minister about this and forwarded initial papers to him. I thank him and his Department for their willingness to meet us. The Minister may not be aware that the Planning Service of the Department of the Environment has already met an initial delegation on this and that the Department for Regional Development has also agreed to a similar meeting.

In the light of all this vital interest among the Departments, can the Minister assure the House that the Department for Regional Development, the Department of the Environment and the Department of Enterprise, Trade and Investment will work together on the designation of a strategic employment location at Creagh, which is vital to the development of our community?

I appreciate that the Member did not press me too hard on the designation, although I know that I would not have to press him too hard to get him to indicate his preference. I can assure him that my Department, the Department for Regional Development and the Department of the Environment will have absolutely no difficulty in working together. If we are to make any sense of this, we must work together. There is a regional dimension and a local dimension to the project.

There is growing concern, which Mr Poots obliquely referred to in an earlier question, about plans for housing and other development, and the question is whether we are leaving enough space for industrial development. In some areas it is in relatively short supply, and we are looking at the total sweep of available land. I am conscious of that, and I can give the Member the assurance he seeks.

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7.

asked the Minister of Enterprise, Trade and Investment what steps are being taken to find a replacement entrepreneur for Step2 in Coleraine, which recently closed down production.

(AQO 1259/01)

The Step2 Company (NI) Ltd was a subsidiary of the privately owned Step2 Company in the United States. A downturn in market conditions and increased competition led to a decision to reduce operations in several locations, including Northern Ireland. A replacement entrepreneur could not have been introduced in the timescale required, because the decision was made without consultation with officials or local management.

The Minister will be aware from his many visits to Coleraine and his meetings with the chamber of commerce and the local council that there is a nervousness about the town's narrow industrial base. Does he agree that there is an absolute urgency to go all out to attract inward investment from the United States, or wherever we can get it, so that there is a more stable economy in Coleraine?

These are difficult times for inward investment. To give the Member some perspective on his area, Invest Northern Ireland currently has 17 client companies in the East Londonderry constituency, employing almost 3,000 people. Since April 1996, selective financial assistance of £55·4 million towards company project investments totalling £238·6 million has been offered, promoting 1,168 new jobs and safeguarding a further 2,900. Invest Northern Ireland and its predecessor organisations have put much work into the Coleraine/ Limavady area, with some considerable success. The decision that the Member referred to was undoubtedly unusual and unfortunate. Discussions took place with the company to try to give it marketing and product development assistance, but decisions were taken without any reference whatsoever to the Department.

Employment and Learning

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I wish to inform Members that questions 5, 6 and 8 in the names of Mr Roy Beggs, Mr Conor Murphy and Mr Eddie McGrady MP respectively have been withdrawn and will receive written answers.

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1.

asked the Minister for Employment and Learning to detail the total funds surrendered from the student loans budget for each of the last three financial years.

(AQO 1291/01)

The total funds surrendered from the student loans budget for each of the last three financial years are as follows: £7·5 million in 1999-2000; £1·19 million in 2000-01; and in 2001-02, nil was surrendered.

I hope that the decreasing figures are a sign of things to come. I presume that they reflect good management as well as other circumstances. Notwithstanding those figures, should there be any such underspends in the future, will any of that money be ploughed back into the budget in order to deal with the ever-increasing levels of student debt? What would be described generally as inadequate funding for third-level education?

The funding for student loans comes from the Treasury; it is not part of the block grant. It is a demand-led service. The Department must provide resources for every student, but if they do not all take up that loan, the resource must be surrendered.

What are the current student grant arrangements, given the comment made by Mr Maskey about student need and debt? Has the Minister any plans, or is she aware of any indications, that the money available for student grant aid might be extended?

Of course there is student need. Dr Seán Farren's £65 million package is coming on stream in September. Part of that package will be student grants of up to £1,500 for all students from households with an income of less than £15,000. The Minister of Finance and Personnel is aware that I intend to seek further resources for student support in order to widen access and to ensure that financial support goes where it is needed most - to those who are least well off.

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2.

asked the Minister for Employment and Learning if she is satisfied that all organisations funded by her Department meet the required statutory obligations under section 75 of the Northern Ireland Act 1998.

(AQO 1267/01)

Section 75 applies to designated public authorities only. My Department provides funding to non-departmental public bodies such as Enterprise Ulster, the Labour Relations Agency and higher and further education institutes, which are responsible for fulfilling statutory equality duties. My Department is working closely with those bodies to assist them and to ensure that a joined-up approach is taken.

The Department for Employment and Learning has the power to extend to the private, voluntary and community sectors the principles that the Equality Commission envisaged. Will the Minister do that? What checks does her Department have in place to ensure that all the organisations that it funds meet their statutory obligations? The board of the Waterside Area Partnership comprises members of every political party except Sinn Féin. Will the Minister address the fact that an organisation that receives funding from her Department is practising blatant political exclusion?

I do not know the position as regards the board of the Waterside Area Partnership, so I shall respond to the Member later.

My Department has formed partnerships with bodies to ensure that they fulfil their statutory obligations under section 75. Ongoing informal consultation is taking place with many organisations to raise awareness of that duty and to promote equality of opportunity.

Has the Minister taken any steps to monitor those organisations' compliance under section 75?

Through its programme of equality impact assessments the Department has put in place arrangements for monitoring the impact of its policies on the promotion of equality of opportunity. Those arrangements extend to monitoring programmes and services that are delivered by organisations on behalf of the Department.

Section 75 relates to equality of opportunity. What is the position of the Department for Employment and Learning as regards suggestions that were made in Westminster that universities should set lower academic entry requirements for potential students from lower income backgrounds?

The debate on that matter is ongoing. The aim will always be to strike the balance between academic excellence and widening access. Dr Birnie will be aware that 1,000 additional higher education places will come on-stream this September.

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3.

asked the Minister for Employment and Learning what plans she has to replace individual learning accounts.

(AQO 1284/01)

I plan to introduce proposals for a replacement scheme in the early autumn, in line with the Programme for Government targets. In delivering a new initiative, I will take account of several factors, including lessons learnt from the initial scheme, the considerations of the employability taskforce, and developments in England, Scotland and Wales.

The forthcoming review of the individual learning accounts scheme will show the extent to which people have been encouraged to return to learning.

Yes. Although several issues emerged as regards the operation of the original individual learning accounts scheme, the user survey that is now being analysed confirmed that the scheme had many positive effects. Although the survey showed that 90% of people were satisfied with their training and had increased their skills or knowledge, it also indicated that there was some deadweight and that the level of participation by the less well off was only 20%.

The latter indicates the importance of the next scheme, which will better target the disadvantaged.

Has the Department carried out any research on the impact of the withdrawal of individual learning accounts in the Province? When that research is collated, will a full consultation process with all concerned bodies be carried out?

That process is ongoing.

If the Minister takes action to amend her Department's stated plans on individual learning accounts, will she take steps to ensure that that in no way takes away from her determination to fully implement the key recommendations of the Moser Report, since to do so would leave us out of step with the rest of the United Kingdom?

It is to be hoped that we will not be out of step with the rest of the United Kingdom. We plan to implement the new individual learning account scheme by September 2002.

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4.

asked the Minister for Employment and Learning when she will be issuing the action plan for the task force on employability and long-term unemployment.

(AQO 1282/01)

The action plan is currently being drafted. The task force intends to issue that report to the Executive before the summer recess. As the Member will know, the action plan is essential. I shall continue to drive the task force forward to ensure the implementation of the action plan.

As the Minister said, the action plan is very important. I welcome the news that it is nearing completion. Will the Minister outline to the House some of the issues that have arisen in the consultation process?

A few broad themes have already emerged from the replies to the discussion documents and the engagement meetings, including benefits traps and the fear of moving from benefit to employment, the availability and affordability of childcare provision, and transport. Those concerns and many others are being pursued with the relevant Departments through bilateral meetings.

Does the Minister agree that large areas of Northern Ireland are experiencing a labour shortage and that companies would employ more workers if they could get them? Given that, does she also agree that Government and individuals have a responsibility to promote mobility of potential workers?

The issue of mobility came up in the discussions on the task force. There is also the question of skills mismatch. When jobs come to our door, we do not have sufficiently skilled and trained people to take them up. The task force must deal with those issues.

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7.

asked the Minister for Employment and Learning what assessment she can make in relation to auditors Deloitte & Touche being engaged as consultants to examine the financial position of colleges of further and higher education when that firm is already engaged as internal/external auditors.

(AQO 1264/01)

My Department engaged Deloitte & Touche through the Government Purchasing Agency's consultancy framework agreement by means of a competitive tender. The framework agreement was itself established by means of a competitive tendering process, in which tenders are evaluated on each company's past experience, financial standing, technical ability and costs.

I thank the Minister for her reply and for her interest in the subject. Does she agree that there could be a potential conflict of interest, as Deloitte & Touche acted both as consultants and as internal and external auditors for those further education colleges? Furthermore, is the Minister aware that the Public Accounts Committee at Westminster was scathing in its criticism of the firm, after the role it played in the financial assessment of further education colleges in Wales? Was that information made available before Deloitte & Touche was selected for a similar assignment here?

In future, it may be advisable not to appoint any firm to act as both auditors and consultants. It would be inappropriate for me to comment on the second point.

I note the Minister's comments and how circumspect she has been. However, has the Minister made any bids for additional funds to the Executive, under the Chancellor of the Exchequer's initiative for Northern Ireland that was announced last week, to wipe out the budgetary deficits of many further education colleges in a planned and structured way, and to give them a firm financial future?

I have not yet made those bids, but I shall make them.

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9.

asked the Minister for Employment and Learning to outline her commitment to further education in East Antrim.

(AQO 1287/01)

On 24 April, as part of the future capital programme, I announced that £1·5 million would be made available for the provision of a new facility at Larne. That will greatly improve the capacity of the East Antrim Institute to extend its existing work in serving local and regional business, as well as industry needs.

I pay tribute to the Minister for her announcement. Will she elaborate further on the type of facilities that will be available in the new institute? Will she assure us that the institute will try to meet the needs of the local economy?

The institute will decide on the courses for the Larne campus. However, it will take into account what is already available at the North East Institute and the East Antrim Institute. I am keen to see the establishment of vocational courses, such as information technology, construction, electronics and engineering, to meet the present and future demands of the economy.

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10.

asked the Minister for Employment and Learning to give an update on the Walsh visa programme.

(AQO 1278/01)

The Walsh visa programme is now in its third year of operation. The US legislation provides visas on the Walsh visa programme until September 2002. The Department for Employment and Learning continues to promote the programme and to recruit participants. Some 26 young people recently completed their pre-departure training, and they travelled to take up jobs in the United States on 5 May.

Will the Minister advise whether the Walsh visa programme has had any more success in keeping young people in the United States when they arrive there? Will she clarify that 26 people have travelled to the United States in the past year? How much does it cost to implement the Walsh visa programme for each person?

Most of the young people have stayed in the United States, but I do not possess the exact figures. It is estimated that £750,000 will be required in 2002-03, which will cover approximately 100 participants. I have not worked it out, but it is roughly £750,000 divided by 100. There may have been a second point; I am not sure.

Was there a second point, Mr Poots?

The Minister mentioned 26 young people. Is that the figure for all of last year?

That is for part of last year.

I wish to pay tribute to the Walsh visa programme; it is a worthwhile scheme for those who want to experience work in America. However, what is the Minister's Department doing to redress the under-representation of sections of the community that cannot fully avail of it, particularly the Protestant and Unionist sections?

I agree with the Member, and I am hopeful that the Walsh programme will continue. From the outset, the Department has been keen to encourage participation from both sides of the community. Recently we have focused marketing activity on the Unionist community, initially in the Greater Belfast area, through targeted mailshots and invitations from representative organisations to meet with the programme management. Further steps will be taken to ensure future advertising for recruitment to the programme, which will pay special attention to areas that appear to be under-represented. We must remember that the young people who avail of this opportunity are generally from poorer, disadvantaged backgrounds.

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11.

asked the Minister for Employment and Learning how she proposes to implement the adult literacy strategy.

(AQO 1286/01)

The essential skills for living strategy, as it is now called, was launched on 17 April, and it is out for public consultation until 21 June. Following the consultation my officials will develop an action plan to implement the strategy, drawing upon the responses received. Members will be aware that an adult literacy strategy is important. A European survey found that almost a quarter of adults have the reading age of an 11-year-old at best, and at worst cannot read a telephone directory, a bus timetable or a label on a medicine bottle. Therefore, it is important that we pursue the strategy, and I shall chair the essential skills committee to ensure that we meet the targets.

What are the key targets of the strategy?

The Department's main targets are, by September 2002, to establish an essential skills committee that is representative of all the main interests in the field. I will chair that committee to drive the strategy forward, and to have a regional curriculum in place for essential skills at entry level. By January 2003 we intend to launch a promotional campaign to engage new learners, with a major drive in September 2003. By 2004 we want to have increased the tutor base for learners by 50%. By 2005 we hope to have supported 25,000 learners. The biggest challenge will be to engage with people in the community who, for various reasons, have missed out on their education - people who are casualties of the education system. We have to go where it suits them, as they may not want to go into a classroom situation. If that is the case, we must go to the community and engage with them.

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12.

asked the Minister for Employment and Learning what assessment she has made of the implications for Northern Ireland following the recent UK National Audit Office report on New Deal.

(AQO 1262/01)

My Department has just concluded a review of New Deal for 18-24 year olds. The results of that, together with recent independent evaluations, will form the basis of improvements that will be implemented over the coming months. Many of those will be in line with the National Audit Office recommendations. The National Audit Office published a report on New Deal for 18-24 year olds on 28 February. It examined how effective the programme had been in reducing unemployment and how it might be improved. The overall conclusion was that New Deal had been successful in placing young people in work, although, as with other labour market programmes, its impact in placing young people in jobs that they would not have got otherwise is less pronounced. The report also made several recommendations aimed at improving the performance of the programme.

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