PROCEEDINGS OF THE SUB-GROUP ON ECONOMIC ISSUES
Minutes of the meeting held on Thursday, 7 December 2006 in Room 135, Parliament Buildings.
In the Chair: Jim Wells
Present: George Dawson
Michelle Gildernew MP
Dr Alasdair McDonnell MP
Mitchel McLaughlin
David McNarry
Margaret Ritchie
Peter Robinson MP
In Attendance: Alan Patterson (Principal Clerk)
Shane McAteer (Clerk)
Colin Jones (Assistant Clerk)
Trevor Allen (Clerical Supervisor)
Graham Gudgin (Economic Adviser)
Michael Smyth (Economic Adviser)
Victor Hewitt (Economic Research Institute of NI)
The meeting commenced at 10.02am in closed session.
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Apologies
Dr McDonnell MP – late arrival (Ms Ritchie deputised until Dr McDonnell arrived).
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Draft Minutes of the Meeting of 30 November 2006
These were agreed for publication on the Assembly website.
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Matters Arising
Members agreed that a taped recording should be made of all sub-group meetings to facilitate papers being drawn up by secretariat staff. It was noted that Irish Government officials had requested that today’s discussions with the sub-group regarding the proposed financial package from the Irish Government be in closed session and no recording made. This request was on the basis that the package and the National Development Plan are still part of a deliberative process by the Irish Government. The sub-group agreed and the Clerk was asked to prepare a detailed note of the meeting for members’ consideration.
It was agreed that the evidence from DRD and DFP officials should be in open session and recorded by Hansard.
Members noted an additional paper on privilege in the Transitional Assembly and the updated procedures for sub-groups as agreed by the Committee on the Programme for Government (PfG).
Members noted a specification of additional requirements which had been issued to the economic advisers. The advisers were required to respond to this before a decision could be made on their contract.
Members agreed on the need for greater flexibility and responsiveness in the Transitional Assembly procurement processes to avoid interruption to the work of the sub-group. Following discussion, it was agreed that this should be raised at the appropriate level, potentially the Transitional Assembly Commission, through PfG.
It was agreed that, for future meetings, seating arrangements should be such as to allow the advisers to be placed at the top of the table, easily distinguishable from sub-group members. It was noted that this may necessitate a change of room.
Members noted recent correspondence from HM Treasury stating that officials were unable to meet with the sub-group today, due to their work on the Chancellor’s pre-Budget report, but offering to meet on Thursday 14 December 2006. It was agreed to invite Treasury officials on 14 December 2006 and also to arrange a pre-meeting between Treasury officials and economic and party advisers on that date on the technical aspects of the corporation tax proposal, with the economic advisers subsequently reporting back to the sub-group.
Mr Dawson stated that he may be unavailable on Thursday 14 December, but would arrange a substitute. Mr Robinson stated that he would only be available after lunchtime.
In relation to the terms of engagement with Treasury, members noted that the sub-group’s remit was one of gathering information, establishing the scope for negotiation, and reporting back to PfG.
It was also agreed that the report on the financial package in the Irish Government’s National Development Plan would be considered on 14 December 2006 for issue to PfG by 15 December. Members agreed to seek an extension to the deadline for reporting to PfG on the other elements of the sub-group’s terms of reference until 22 December 2006 and to meet on 21 December 2006 to agree the draft report on these issues.
Members noted that Professor John Fitz Gerald and Professor Frank Barry were unavailable before 15 December 2006 and suggested several further alternatives who could be asked to give evidence at next week’s meeting.
Mr McNarry proposed that ‘those parties not represented on the sub-group should be invited to contribute to the sub-group’s deliberations.’ There was consensus and the proposal was agreed.
It was agreed to write to Alliance, PUP and UKUP, inviting them to make written submissions.
Members noted that Dr Peter Gilleece had been assigned to the sub-group to carry out any research required.
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Meeting with Irish Government Officials
Members noted the submission from Irish Government officials. Members met with the following officials in relation to a proposed financial package for Northern Ireland to be announced by the Irish Government in its National Development Plan:
- Martin Fraser, Northern Ireland/International Division, Department of the Taoiseach;
- Aingeal O’Donoghue, Anglo-Irish Division, Department of Foreign Affairs; and
- Deirdre O’Hanlon, Sectoral Policy Division, Department of Finance.
The meeting was suspended at 12.05pm.
Ms Ritchie left the meeting at 12.05pm.
The meeting resumed at 1.40pm in closed session.
Dr McDonnell joined the meeting at 1.40pm.Members agreed to ask PfG to amend sub-group procedures to allow MLAs to take the place of party advisers where necessary in attending meetings held in closed session. It was agreed that this approach would provide scope for greater flexibility should a Member from the UUP or SDLP need to leave the meeting for a short period.
It was agreed to request a research paper for next week’s meeting on areas of cross-border cooperation.
The meeting continued in open session at 2.00pm.
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Evidence Session with Department for Regional Development and Department of Finance and Personnel Officials
Members noted the correspondence between PfG and the Secretary of State in relation to water charges.
Members took evidence from the following officials in relation to the potential budget deficit in the event that water reform legislation does not proceed or is deferred:
- David Sterling, Department for Regional Development;
- Nigel McCormick, Department for Regional Development; and
- Richard Pengelly, Department of Finance and Personnel.
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Draft Work Plan
Members agreed a revised draft work plan for the sub-group. It was also agreed that the Hansard of the evidence from DRD and DFP should be made available to members of the sub-group on the Comprehensive Spending Review.
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Any Other Business
Members considered a response from the Secretary of State in relation to the reports to the Preparation for Government Committee from the sub-group on the economic challenges facing Northern Ireland. It was agreed to seek approval from PfG to invite the appropriate Ministers to meet with the sub-group on their response to these reports.
Mr McNarry proposed that ‘PfG should be asked to consider the need for all four parties to be represented in any new chairing arrangements for the sub-group.’ There was consensus and the proposal as agreed.
Mr Dawson proposed that ‘reference to agriculture and rural development should be made in the sub-group’s counter proposals to the Chancellor’s package and that a submission from the Ulster Farmers’ Union to a previous report from the sub-group on the economic challenges facing Northern Ireland should be included for consideration at next week’s meeting.’ There was consensus and the proposal was agreed.
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Date, Time and Place of Next Meeting
The next meeting of the sub-group was arranged for Thursday 14 December 2006 at 10.00am in Room 144, Parliament Buildings. The purpose of the meeting will be to take evidence from an ROI economist and Treasury officials, subject to availability.
The meeting adjourned at 3.40pm.