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PROCEEDINGS OF THE SUB-GROUP TO CONSIDER THE ECONOMIC CHALLENGES FACING NORTHERN IRELAND Minutes of the meeting held on Thursday, 26 October 2006 in Room 135, Parliament Buildings. In the Chair: David McClarty Present: Leslie Cree In Attendance: Shane McAteer (Clerk) The meeting commenced at 10.03am in closed session.
1. Apologies Dr. Esmond Birnie (Mr Cree attended the meeting as UUP representative in place of Dr Birnie). David Ford. Michelle Gildernew MP (Ms Stanton attended the meeting as SF representative in place of Ms Gildernew). Ian Paisley Jnr (Mr Newton attended the meeting as DUP representative in place of Mr Paisley Jnr). Margaret Ritchie (Mr Dallat attended the meeting as SDLP representative in place of Ms Ritchie). Peter Weir (Mr Poots attended the meeting as DUP representative in place of Mr Weir).
2. Draft Minutes of Meeting on 3 October 2006 These were agreed for publication on the Assembly’s website. Mr McLaughlin joined the meeting at 10.05am.
3. Matters Arising Members noted the reply from Maria Eagle, MP regarding the government’s response to the sub-group’s reports. Members agreed to write to the Secretary of State to express their dissatisfaction with the response and to press the Minister to meet with the sub-group as soon as possible after the publication of the sub-group’s third report. It was agreed to include a recommendation in the draft third report to this effect. Members noted the response from the Secretary of State to the Committee on the Preparation for Government regarding the quorum for sub-group meetings. Mr McNarry joined the meeting at 10.07am. Members noted the report from the Secretary of State on North/South economic collaboration via the British/Irish Inter-Governmental Conference. Members noted DFP’s response on public expenditure forecasts. Members noted the instruction from the Committee on the Preparation for Government in relation to proceedings for today’s meeting. Members noted the advice from the Assembly Legal Service on sub-judice and the current judicial review on the consultation process regarding water reform. Members agreed to seek an extension to the deadline for their third report until 13 November 2006, given that the ERINI research paper on corporation tax would not be available until 30 October 2006. Mr Poots joined the meeting at 10.11am. Members noted the Government’s response to the recommendation contained in the Northern Ireland Affairs Committee Report in relation to the harmonisation of fuel duty.
4. Written Submissions Received for Third Report Members noted the written submissions received in relation to the sub-group’s third report and agreed that they should be included in the draft report.
5. Evidence Session The meeting continued in open session at 10.20am. The sub-group took evidence from Ms Eleanor Gill, Chief Executive and Mr Steve Costello, Chair, of the General Consumer Council for Northern Ireland. Dr McDonnell joined the meeting at 10.22am. Members agreed recommendations in relation to water reform to be forwarded to the Committee on the Preparation for Government as follows: ‘That the sub-group recognises the strong case made by the Consumer Council for a delay in the water reform legislation, to allow more detailed consideration of the issues by a restored devolved administration. The sub-group therefore recommends that, as part of a proposed economic package: (a) the public services funding gap caused by a delay in the water reform legislation; and (b) the capital backlog, or at least a significant percentage of it, be paid for by Government as additional funding.’ 'The sub-group further recommends that the Preparation for Government Committee: (a) requests the Secretary of State to provide full details of the financial package agreed in 2005 between the Secretary of State and HM Treasury; and (b) considers commissioning an independent study to accurately determine the costs associated with a delay in the implementation of the water reform legislation.’ The meeting continued in closed session at 11.20am.
6. Preparation for Meeting with Chancellor on 1 st November 2006 Mr McNarry proposed that the meeting should continue in open session and be recorded by Hansard. Ayes: Sinn Fein, UUP. Noes: Alliance, DUP, SDLP. The motion fell. Dr McDonnell left the meeting at 11.35am. Members noted that the political parties, as opposed to sub-group members, had been invited to meet with the Chancellor on 1 st November, but that the sub-group’s second report on the economic package would be a major feature in the negotiations. Mr Dallat left the meeting at 11.52am. Members noted that DFP officials had been approached to update the sub-group but had declined to attend. It was agreed that this should be reported to the Committee on the Preparation for Government. Victor Hewitt, Director of ERINI, updated members on ERINI’s research in relation to corporation tax. Dr McDonnell joined the meeting at 12.28pm. Members agreed the contents of a report to the Committee on the Preparation for Government in relation to today’s proceedings. It was agreed that particular priority should be attached to establishing a discretionary legislative power for a restored devolved administration to vary corporation tax in Northern Ireland. It was also agreed that the need for major investment in infrastructure to support economic regeneration and sustainability was also a high priority. It was also agreed that party delegations attending the meeting with the Chancellor should be offered a briefing on the sub-group’s second report by the sub-group’s officials and economic advisors and that a further briefing should be arranged in the House of Commons, prior to the meeting with the Chancellor. It was agreed that Victor Hewitt should be asked to attend both briefings.
7. Any Other Business None.
8. Date, time and Place of Next Meeting The next meeting of the sub-group was arranged for Thursday 9 November 2006 at 10.00 am to consider the sub-group’s draft third report. The meeting adjourned at 12.55pm. |