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PROCEEDINGS OF THE SUB-GROUP TO CONSIDER THE ECONOMIC CHALLENGES FACING NORTHERN IRELAND Minutes of the meeting held on Monday, 2 October 2006 in Room 135, Parliament Buildings at 2.00pm. In the Chair: Alban Maginness Present: Dr Esmond Birnie In Attendance: Alan Patterson (Principal Clerk) The meeting commenced at 2.10pm in closed session. 1. Apologies Mitchel McLaughlin (Mr McGuigan attended the meeting as Sinn Fein representative in place of Mr McLaughlin). Ian Paisley Jnr (Mr Dawson attended the meeting as DUP representative in place of Mr Paisley Jnr). Peter Weir (Mr Robinson attended the meeting as DUP representative in place of Mr Weir). 2. Draft Minutes of Meeting on 21 September 2006 These were agreed for publication on the Assembly’s website. 3. Matters Arising Members noted the Sinn Fein submission on the economic package, which has been included in the draft report. Members noted the paper on the recent Azores judgement, which had been requested at the last meeting. It was noted that DETI officials had been asked to provide advice on the judgement. Members noted the request for further information on the outcomes from the Industrial Derating Group. Members noted the request to DFP for estimated public expenditure figures. 4. Revised Workplan Members agreed that, due to the forthcoming political negotiations, the meeting scheduled for Thursday 12 th October should be cancelled. Members noted that DETI officials were co-ordinating an urgent cross-departmental response to the sub-group’s first report and that this would be sent to the Committee on the Preparation for Government. Members noted that Maria Eagle, MP was not available to meet with the sub-group on 5 th October as requested and had been offered several alternative dates. Members agreed that the meeting on the 5 th October should be rearranged. Members also noted the deadline for the sub-group’s second report of 4 th October and that it would fall to the Committee on the Preparation for Government to decide whether the report should be debated in plenary. Members noted the response to the Secretary of State in relation to further evidence from DETI officials. It was noted that further information had been received from DETI and included in the sub-group’s second report. However, up-to-date information had been requested on the costs of reducing corporation tax, on the costs and benefits of a range of fiscal incentives and on the practical implications of the recent EC Azores judgement. Members noted that the Secretary of State’s decision in relation to the independent study to be commissioned by DETI meant that the sub-group could no longer comply with its current terms of reference. A revised terms of reference was agreed for issue to the Committee on the Preparation for Government. In addition to the cancellation of the meeting on 12 th October, members agreed to reschedule the meeting planned for Thursday 5 th October, due to the Minister’s unavailability. It was agreed to meet instead on Monday 9 th and 16 th October to take evidence and also on Thursday 19 th October to consider the sub-group’s third report. 5. Consideration of Draft Report Members agreed that the minutes of today’s meeting should be included in the draft report as unapproved minutes. Members considered and agreed the draft report as follows: Title Page Agreed. Sub-group Terms of Reference and Membership Agreed subject to minor amendment. List of Contents Agreed subject to minor amendment. Members agreed to leave their consideration of the Executive Summary and Recommendations until the end. Introduction Background to the Report Paragraphs 1 – 2 were agreed. Scope and Constraints Paragraphs 3 – 7 were agreed. Paragraph 8 – it was agreed that this would have an impact on Recommendation 4, which would need to be considered. Paragraph 9 – it was agreed to revisit this paragraph to consider whether it was necessary to separately list interim recommendations. Paragraph 10 – was agreed. The Sub-group’s Approach Paragraphs 11 – 16 were agreed. Paragraph 17 It was proposed by Mr McNarry and seconded by Mr Neeson that: The sentence, ‘Following consideration, the report may be published by the Committee on the Preparation for Government,’ should be amended to read ‘Following consideration, the report should be published by the Committee on the Preparation for Government.’ Ayes: Alliance, DUP, SDLP, and UUP. Noes: None. The motion was carried. A Case for an Economic Package Paragraph 18 Members debated whether ‘political instability’ should be added to the references contained in the paragraph to the effects of ‘civil unrest.’ Members agreed to return to this at a later stage. Paragraphs 19 – 26 were agreed. Paragraph 27 Members debated whether ‘political instability’ should be added to the references contained in the paragraph to the effects of ‘civil unrest.’ Members agreed to return to this at a later stage. Paragraphs 28 – 29 were agreed. Paragraph 30 was agreed. Paragraphs 31 – 40 were agreed. Conclusion Paragraphs 41 – 43 were agreed. Review of the Evidence Introduction Paragraphs 44 – 47 were agreed. Fiscal Measures Paragraphs 48 – 54 were agreed. Other Elements of an Economic Package Paragraphs 55 – 66 were agreed. The Views of the Political Parties Paragraphs 67 – 73 were agreed. Summary Paragraph 74 was agreed. Fiscal Reform as Part of an Economic Package Paragraphs 75 – 76 were agreed. Corporation Tax Paragraphs 77 – 85 were agreed. Paragraphs 86 – 88 In relation to the conditions arising from the European Court of Justice decision in the Azores case, it was noted that Northern Ireland would have to make up any tax shortfall from a reduction in corporation tax from within its own public expenditure resources. It was noted that further advice had been requested from DETI and that the forthcoming ERINI research would include mitigating proposals as to how Northern Ireland could cope with a potential shortfall in revenue. As this information had not yet been received, Members debated the conclusions contained in Paragraph 88 in relation to Corporation Tax. No agreement was reached. 6. Any Other Business None. 7. Date, Time and Place of Next Meeting The next meeting of the sub-group was arranged for Tuesday, 3 October 2006 at 2.00pm in Room 135 to continue consideration of the draft report. The meeting adjourned at 4.32pm. |