PROCEEDINGS OF THE SUB-GROUP ON ECONOMIC ISSUES
Minutes of the meeting held on Thursday, 30 November 2006 in Room 135, Parliament Buildings.
In the Chair: Francie Molloy
Present: George Dawson
Michelle Gildernew MP
Dr Alasdair McDonnell MP
Mitchel McLaughlin
David McNarry
In Attendance: Alan Patterson (Principal Clerk)
Shane McAteer (Clerk)
Colin Jones (Assistant Clerk)
Trevor Allen (Clerical Supervisor)
Graham Gudgin (Economic Advisor)
Michael Smyth (Economic Advisor)
Victor Hewitt (Economic Research Institute of NI)
The meeting commenced at 10.06am in closed session.
1. Apologies
Peter Robinson MP.
2. Introductions
Members noted details of secretariat support staff and sub-group membership.
3. Sub-group Procedures and Terms of Reference
Members noted the procedures for the sub-group, as approved by the Programme for Government Committee.
Members considered the terms of reference for the sub-group from the Programme for Government Committee. Members were informed that the Irish Government’s National Development Plan, which would contain details of investment planned for Northern Ireland, was to be finalised before Christmas for publication in early January 2007. It would therefore be necessary to engage with Irish Government officials and report to the Programme for Government Committee on the National Development Plan earlier than envisaged and this would mean that the original terms of reference would need to be amended.
On a point of clarification from Mr McNarry, it was agreed that, under the sub-group’s terms of reference, the aim of an initial meeting with Irish Government officials would be to seek information on their proposed package for Northern Ireland.
Members recognised and agreed that Irish Government officials should be informed of the need for sensitivity in framing details of the economic package for Northern Ireland in their National Development Plan.
The sub-group agreed the importance of a balanced approach to dealing with Her Majesty’s Treasury and the Irish Government.
It was agreed that the delivery and control arrangements for the Irish Government’s package would need to be scrutinised and that the sub-group should also determine whether the package on offer was additional money for Northern Ireland, or whether the Northern Ireland block would be reduced accordingly. Related to this, there would be a need to establish the extent to which HM Treasury has had an input to the Irish Government’s package.
The Chairman proposed that the terms of reference, as amended to report by 15 December 2006, should be forwarded to the Programme for Government Committee for approval. There was consensus and the proposal was agreed.
4. Declaration of Interests and Transitional Assembly Privilege
Members noted that the Transitional Assembly’s Standing Orders 29 (f) state that, ‘before taking part in any debate or proceeding of the Assembly, a Member shall declare any interest, financial or otherwise, which is relevant to that debate or proceeding, where such interest is held by the member or an immediate relative.’
The Chairman asked members to declare any relevant interests.
Dr McDonnell declared membership of the Belfast Vision of Infrastructure working group and that he was a board member of Medevol.
Ms Gildernew declared that she was a member of Dungannon Regeneration Partnership.
Mr Dawson declared unremunerated interests in a number of businesses and non-governmental organisations, which are listed in the Register of Members Interests.
Members noted the information in relation to privilege contained in Paragraph 8 of Schedule 1 to the Northern Ireland (St Andrews Agreement) Act 2006.
5. Briefing Papers
Members were informed that the economic advisers supporting the previous sub-group on the economic challenges facing Northern Ireland had completed their original commission and were currently working on a voluntary basis. Advice from the Assembly’s Procurement Service was that it would be sensible to continue the original contract, given the continuity and urgency of the work. However this required approval from senior management and this had not yet been received.
Members stressed the need for independent expert advice and agreed to suspend the meeting to allow the Principal Clerk to seek further clarification.
The meeting was suspended at 11.15 am.
The meeting resumed at 11.27am.
After obtaining further advice, members agreed that the economic advisers should be retained at their current rate, pending a re-tendering exercise and that the advisers should be paid for work done since the completion of the original commission.
Members agreed to hold future meetings in closed session, with two researchers per party able to attend as observers, unless the sub-group agreed beforehand that meetings should be open to the public.
It was agreed that the Head of Assembly Research should be contacted to determine whether Dr Gilleece would be available to the sub-group if required.
It was agreed that Professor John Fitzgerald, Economic and Social Research Institute and Professor Frank Barry, University College Dublin should be asked to give evidence to the sub-group.
Members agreed a response to the Chancellor in relation to Corporation Tax.
Members agreed to invite HM Treasury officials and Irish Government officials to give evidence on Thursday 7 December 2006, subject to availability and to seek an urgent meeting between the sub-group’s advisers and Treasury officials.
It was also agreed that party advisers would be invited to the meeting between the economic advisers and Treasury officials.
The sub-group considered its analysis of the Chancellor’s package of 1 November 2006. It was agreed that the analysis paper should be included in the sub-group’s draft report for members’ consideration.
The economic advisers presented a paper on potential priorities in respect of a counter proposal to the Chancellor’s package.
The meeting was suspended at 12.23pm.
The meeting resumed at 12.40pm.
Following debate, it was agreed that the paper on potential priorities should be updated on an ongoing basis and resubmitted to the sub-group for consideration and inclusion in the sub-group’s draft report.
Ms Gildernew left the meeting at 1.20pm.
6. Work Programme
In relation to water reform, members noted that a sub-group’s ToR was specific to the issue of the potential budget deficit in the event that the water reform legislation and other revenue related issues do not proceed or are deferred. The sub-group noted that the Comprehensive Spending Review (CSR) sub-group was tasked to consider the general issue of water reform.
Members agreed to invite DRD officials to give evidence on the above issue.
7. Any Other Business
Members agreed that relevant papers should be copied to the CSR sub-group and that the CSR sub-group would be invited to reciprocate this arrangement to ensure that there was no unnecessary duplication or confusion where issues were of common interest.
8. Date, Time and Place of Next Meeting
The next meeting of the sub-group was arranged for Thursday 7 December 2006 at 9.00am in Room 135, Parliament Buildings. The purpose of the meeting will be to take evidence from RoI and Treasury officials, subject to availability and from DRD officials on water charges. The meeting would also consider an updated version of the priorities paper.
The meeting adjourned at 1.35pm.