PROCEEDINGS OF THE SUB-GROUP ON ECONOMIC ISSUES
Minutes of the meeting held on Thursday, 14 December 2006 in Room 144, Parliament Buildings.
In the Chair: John O’Dowd
Present: Fra McCann
Dr Alasdair McDonnell MP
Mitchel McLaughlin
David McNarry
Margaret Ritchie
Peter Robinson MP
Mervyn Storey
In Attendance: Alan Patterson (Principal Clerk)
Shane McAteer (Clerk)
Colin Jones (Assistant Clerk)
Paul Stitt (Clerical Supervisor)
David Douglas (Clerical Officer)
Graham Gudgin (Economic Adviser)
Michael Smyth (Economic Adviser)
Victor Hewitt (Economic Research Institute of NI)
Dr Peter Gilleece (Assembly Research and Library Services)
The meeting commenced at 10.03am in closed session.
1. Apologies
George Dawson (Mr Storey attended the meeting as DUP representative in place of Mr Dawson).
Michelle Gildernew MP (Mr McCann attended the meeting as SF representative in place of Ms Gildernew).
Dr McDonnell MP – late arrival (Ms Ritchie deputised until Dr McDonnell arrived).
2. Draft Minutes of the Meeting of 7 December 2006
These were agreed for publication on the Assembly website.
3. Matters Arising
Members agreed that today’s evidence from both Professor John Fitz Gerald and HM Treasury officials should be held in open session and recorded by Hansard.
Members agreed a request from DRD that the finalised Hansard transcript of last week’s evidence from DRD and DFP could be made available to DRD officials for inclusion in a Departmental submission to their Minister.
Members approved a request from Treasury officials to include a DFP official, if necessary, in their delegation to give evidence later in the meeting.
Members noted that the Committee on the Programme for Government (PfG) had approved the sub-group’s request to extend the deadline for reporting on the economic package to Friday 22 December 2006 and to follow up responses on the three reports from the sub-group on the economic challenges facing Northern Ireland, with the Secretary of State. Members agreed the contents of a letter to the Secretary of State in relation to this matter.
Members noted the response from the economic advisers to the revised specification containing requirements for additional support to the sub-group. Members also noted the necessary formal approval from the Clerk to the Assembly in respect of this further commission.
It was agreed to retain the advisers on the basis of the new arrangements from 6 December 2006 and to provide any required clarification on the role of the advisers in the formal specification.
Members noted the response from PfG in relation to chairing arrangements for sub-groups and the revised procedures for Members and party researchers/advisers observing proceedings held in closed session.
Members noted the invitations issued to Alliance, PUP and UKUP to submit their views on the sub-group’s terms of reference, and that no responses had been received to date.
Members noted further information from DFP, requested at the evidence session last week, on the impact of 0.5% per annum real growth on the Chancellor’s package.
Mr McNarry proposed that
‘the Hansard of last week’s evidence session with DRD/DFP officials should be checked and any further outstanding information requested.’
There was consensus and the proposal was agreed.
4. Evidence Session with Professor John Fitz Gerald, Economic and Social Research Institute
The meeting continued in open session at 10.20am. The evidence session was recorded by Hansard.
Members noted the background papers and written submission from Professor Fitz Gerald.
Members took evidence from Professor John Fitz Gerald, Economic and Social Research Institute.
The meeting was suspended at 11.16am.
The meeting resumed in closed session at 11.28am.
5. Presentation from Assembly Research and Library Services
Dr Peter Gilleece presented a research paper on Cross-Border Co-operation.
6. Consideration of Draft Report on the Proposed Financial Package from the Irish Government
Members noted that the draft report included a detailed note of the meeting with Irish Government officials and a summary of the evidence from Prof Fitz Gerald and the research paper from Dr Gilleece, based on papers provided in advance.
Members considered the draft report paragraph by paragraph.
Terms of Reference and Membership were agreed.
Introduction
Paragraphs 1 – 4 were agreed.
Following debate, Mr McNarry proposed that paragraph 5 should be considered once the sub-group had been updated on this morning’s meeting between economic/party advisers and Treasury officials.
There was consensus and the proposal was agreed.
Paragraphs 6 – 7 were agreed.
Paragraph 8 was agreed, subject to the following amendment:
that ‘with particular reference to his comments on corporation tax,’ should be added after ‘14 December meeting.’
Paragraph 9 was agreed.
Following debate, Mr McNarry proposed that paragraph 10 should be considered at the end of the sub-group’s deliberations.
There was consensus and the proposal was agreed.
Consideration of Issues
Paragraphs 11 – 12 were agreed.
Paragraph 13 was agreed subject to the following amendment:
that ‘jurisdictions’ should be replaced by ‘ROI and NI.’
Paragraph 14 was agreed.
Paragraph 15 was agreed subject to the following amendment:
that ‘These meetings commenced over two months prior to the sub-group’s meeting with the Irish Government officials,’ should be added as the paragraph’s second sentence.
Paragraphs 16 - 20 were agreed.
Paragraphs 21 - 25 were agreed.
Paragraphs 26 - 27 were agreed.
Paragraph 28 was agreed subject to the following amendment:
that ‘it was stated,’ be replaced by ‘Irish Government officials stated.’
Mr Storey undertook to provide a report relating to discrimination against Protestants in the border areas to the Clerk, for circulation to Members.
Paragraph 29 was agreed subject to the following amendment:
that ‘Officials were also asked’, be replaced by ‘The Irish Government officials were also asked.’
Paragraph 30 was agreed subject to the following amendments:
that ‘Publication of the Plan’, be replaced by ‘Sensitivities around the Publication of the NDP,’ and that ‘appropriate vehicle,’ be replaced by ‘only vehicle.’
Paragraph 31 was agreed.
Paragraph 32 was agreed subject to the following amendment:
that ‘the paragraph should end after the word ‘unavoidable,’ and that all subsequent wording should be deleted.
Paragraphs 33 - 35 were agreed.
Paragraph 36 was agreed subject to the following amendment:
That ‘Professor Fitz Gerald also commented on ROI’s competitive rate of corporation tax and the sub-group noted that he saw this as less of an advantage to ROI than it had once been,’ be included after ‘mutual benefit.’
Paragraphs 37 - 39 were agreed.
Paragraphs 40 - 46 were agreed.
The meeting was suspended at 1.10pm.
The meeting resumed in closed session at 1.38pm.
Ms Ritchie left the meeting at 1.38pm.
Dr McDonnell joined the meeting at 1.38pm.
Conclusions and Recommendations
Para 47 was agreed subject to the following amendment:
that the text in bold at the end of the paragraph, be replaced by ‘further exploration and consideration is undertaken to influence the content and presentation of the economic package.’
Para 48 was agreed subject to the following amendment:
that the last sentence of the paragraph, which includes the text in bold, be deleted and replaced by, ‘The sub-group recommends that a case should be made for match-funding arrangements which provide additional resources from the Treasury.’
7. Report from Advisers on Meeting with Treasury Officials re Technical Aspects of Corporation Tax Proposal
The economic advisers updated members on the outcome of the meeting which they and party advisers had with Treasury officials.
Mr McNarry left the meeting at 1.56pm.
The meeting was suspended at 1.56pm as it was inquorate.
Mr McNarry joined the meeting at 2.10pm.
Mr Robinson joined the meeting at 2.10pm.
The meeting resumed in closed session at 2.10pm.
It was agreed that the draft report on the economic package to be considered next week should include a section in response to the issues raised at this morning’s meeting with Treasury officials and proposing further engagement.
8. Evidence Session with HM Treasury Officials
The meeting continued in open session at 2.17pm. The evidence session was recorded by Hansard.
Members took evidence from the following officials from HM Treasury:
- Ray Shostak, Director of Public Services;
- Dan Rosenfield, Head of Devolved Countries and Regions Team;
- Judith Knott, Head of Corporate Taxation Team;
- Martin Beck, Economic Adviser on Corporate Taxation System; and
- Mark Parkinson, Policy Analyst with Devolved Countries and Regions Team.
Mr Storey left the meeting at 2.40pm.
9. Consideration of Draft Report on the Proposed Financial Package from the Irish Government (Cont)
The meeting continued in closed session at 3.35pm.
Conclusions and Recommendations (cont)
Para 49 was agreed subject to the following amendment:
that ‘an appropriate inter-governmental mechanism should be developed,’ be replaced by ‘appropriate methods should be used.’
Paragraphs 50 – 51 were agreed.
Para 52 was agreed subject to the following amendment:
that ‘in the main,’ be replaced by ‘where appropriate,’ and that ‘each jurisdiction,’ be replaced by ‘ROI and NI.’
Para 53 was agreed subject to the following amendment:
that ‘the financial package,’ be replaced by ‘any financial package,’ and that ‘for the purposes of identifying, prioritising and agreeing specific projects and to settle the associated funding, management and accountability arrangements,’ be deleted.
Para 54 was agreed subject to the following amendment:
that the last two sentences i.e. everything after ‘at an early stage,’ be deleted.
Executive Summary
Paragraph 1 was agreed.
Paragraph 2 was agreed subject to the following amendment:
that ‘in preparation for future engagement with the Irish Government by a NI Executive,’ be deleted.
Paragraph 3 was agreed subject to the following amendment:
that ‘Irish Government’s National Development Plan before Christmas with publication proposed by late January 2007,’ be deleted and replaced by ‘outline of the economic package,’ and that ‘Programme for Government Committee to provide input,’ be deleted and replaced by ‘further exploration and consideration to influence.’
Paragraph 4 was agreed subject to the following amendment:
that ‘officials,’ be replaced by ‘Irish Government officials.’
Paragraph 5 was agreed subject to the following amendment:
that ‘officials,’ be replaced by ‘Irish Government officials.’
Paragraph 6 was agreed subject to the following amendment:
that ‘a geographically neutral approach’ be replaced by ‘an equality approach.’
Paragraph 7 was agreed subject to the following amendment:
that the last sentence, be replaced by ‘the sub-group recommends that a case should be made for match-funding arrangements which provide additional resources from the Treasury.’
Mr Storey joined the meeting at 3.58pm.
Paragraph 8 was agreed subject to the following amendment:
that ‘primarily,’ be deleted.
Paragraph 9 was agreed subject to the following amendment:
that ‘action,’ be replaced by ‘consideration’ and that everything after Programme for Government Committee be deleted.
Recommendations
It was agreed that this section should be amended to reflect the changes already agreed to the recommendations contained in the main body of the report.
In relation to paragraphs 5 and 10, which had previously been deferred for consideration later in the meeting, it was agreed that the issues outstanding had subsequently been addressed through consequential amendments arising from the sub-group’s consideration of the Executive Summary.
The Chairperson proposed that the draft report, as amended, be agreed as the sub-group’s first report to the Committee on the Programme for Government.
There was consensus and the proposal was agreed. The amended report would issue to PfG by the deadline of 15 December 2006.
10. Any Other Business
Members considered and agreed a press release for issue in relation to today’s meeting.
11 Date, Time and Place of Next Meeting
The next meeting of the sub-group was arranged for Thursday 21 December 2006 at 10.00am in Room 144, Parliament Buildings. The purpose of the meeting will be to consider the draft report on the Chancellor’s economic package.
The meeting adjourned at 4.05pm.