PROCEEDINGS OF THE SUB-GROUP TO CONSIDER THE ECONOMIC CHALLENGES FACING NORTHERN IRELAND

Unapproved Draft

Minutes of the meeting held on Monday, 13 November 2006 in Room 135, Parliament Buildings.

In the Chair: Jim Wells

Present: Dr Esmond Birnie
George Dawson
David Ford
Alban Maginness
Mitchel McLaughlin
David McNarry
Sean Neeson
Margaret Ritchie

In Attendance: Alan Patterson (Principal Clerk)
Shane McAteer (Clerk)
Colin Jones (Assistant Clerk)
Trevor Allen (Clerical Supervisor)
Michael Smyth (Economic Advisor)

The meeting commenced at 1.02pm in closed session.

1. Apologies

Michelle Gildernew MP.

Dr Alasdair McDonnell MP (Mr Maginness attended the meeting as SDLP representative in place of Dr McDonnell).

Ian Paisley Jnr.

Peter Weir (Mr Dawson attended the meeting as DUP representative in place of Mr Weir).

2. Draft Minutes of Meeting on 9 November 2006

These were agreed as amended for publication on the Assembly’s website.

3. Consideration and Approval of Sub-Group’s Draft Third Report

Members noted that a briefing from DFP on the economic package had been arranged for the political parties on Wednesday 15 November 2006.

Executive Summary

Paragraph 1 agreed subject to the following amendment:

that ‘The sub-group had agreed to further examine the issues of skills training particularly in the context of developing a focus on Science and Technology as drivers of a sustainable economic recovery. However the necessity of preparing a detailed submission for the meeting with the Chancellor, Gordon Brown became an overriding priority,’ be added as the second sentence.

Paragraph 2 agreed subject to the following amendment:

that ‘written evidence be amended to read ‘oral and written evidence’ and

that ‘devolve fiscal autonomy on corporation tax matters to a restored Executive,’ be amended to read ‘ have a competitive rate of corporation tax with the possibility of other equivalent fiscal incentives.’

Paragraph 3 agreed subject to the following amendment:

that ‘the costs of deferring water reform should form part of an economic package,’ should be amended to read ‘ the water reform legislation should be deferred and dealt with as an NI Assembly matter and that the costs of such deferment should form part of an economic package.’

Paragraph 4 was agreed.

Paragraph 5 was agreed subject to minor amendment.

Paragraph 6 was agreed.

It was agreed that further paragraphs should be added to reflect the proposals put forward by the UUP.

Recommendations

Paragraph 1 agreed subject to the following addition:

That ‘The sub-group believes that this is essential to provide an opportunity to question the Minister on the Secretary of State’s response to its first report in his letter of 31 October 2006 ’ be added at the end of the paragraph.

Paragraphs 2 –3 were agreed.

The sub-group agreed that two further recommendations should be added after paragraph 3 as follows:

‘The sub-group recommends that there is a need for clarity over the future of education in N Ireland It further recommends that account should be taken of any strategic financial/policy implication which may arise out of the Bain Report.’

‘The sub-group recommends that special attention should be given to science, technology and engineering as part of an integrated education and skills strategy.’

Paragraphs 4 –9 were agreed.

Paragraphs 10 and 11 were replaced with the following:

‘The sub-group recommends that, as part of an economic package:

(a) The water reform legislation is deferred and dealt with as an NI Assembly matter.

(b) The public services funding gap caused by this deferment and 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 Secretary of State commission an independent study to accurately review all aspects of the water reform proposals during the deferment period.’

Introduction

Paragraphs 1–6 were agreed.

Paragraph 7 was amended to reflect the changes previously agreed to Recommendations, Paragraph 1.

Paragraphs 8 –13 were agreed.

Review of the Evidence presented to the Sub-group

Paragraphs 14 –20 were agreed.
Paragraph 21 was agreed, subject to minor amendment.
Paragraphs 22 –25 were agreed.
Paragraphs 26 –29 were agreed, subject to minor amendment.
Paragraph 30 was agreed.

It was agreed that two further paragraphs should be inserted to reflect the additions previously agreed following Recommendations, paragraph 3.

Paragraphs 31 –32 were agreed.

Paragraph 33 was agreed, subject to the following amendment:

That ‘and for more attention to be devoted to engineering and science throughout the education system from primary to tertiary levels’ be removed.

Paragraphs 34 –42 were agreed.
Paragraphs 43 –47 were agreed.
Paragraphs 48 –53 were agreed.
Paragraphs 54 –57 were agreed.
Paragraphs 58 –60 were agreed.
Paragraphs 61 –63 were agreed.
Paragraphs 64 –69 were agreed.
Paragraphs 70 –83 were agreed.

It was agreed that paragraphs 84 – 85 would be redrafted to reflect the changes previously agreed to recommendations, paragraphs 10-11.

Paragraphs 86 –87 were agreed.

It was agreed that the draft report as amended be the third report to the Committee on the Preparation for Government.

4. Matters Arising

Members noted the response from DRD in relation to water reform and the Reinvestment and Reform Initiative.

Members noted the memo sent to the Committee on the Preparation for Government, in relation to the extension of the sub-group’s remit which had been agreed at the last meeting.

Members noted that any decision to extend the contracts of the economic advisors may need to be ratified by the Assembly’s Senior Management Team.

Mr Dawson left the meeting at 2.13pm.

The meeting adjourned at 2.13pm as it was inquorate.