| 14 December 2006 | PN 13/06 |
TREASURY OFFICIALS QUIZZED BY ASSEMBLY SUB-GROUP
At an historic meeting today, the Transitional Assembly’s Economic Sub-Group took evidence from Gordon Brown’s officials on the Chancellor’s offer of an economic package for Northern Ireland. This meeting marked the first occasion in which Treasury officials have appeared before an Assembly committee.
Mr John O’Dowd MLA, who chaired today’s meeting, said “Members of the sub-group welcomed the opportunity to question senior Treasury officials on the detail of the widely publicised ‘£50bn package’ offered by the Chancellor and to explore the possibilities for having a competitive rate of corporation tax for Northern Ireland. This scrutiny has confirmed the sub-group’s view that the Chancellor’s package offers initial certainty but no obvious additional monies and can be regarded as nothing more than an opening offer in an ongoing negotiation.”
In addition to taking evidence from Treasury, the sub-group agreed unanimously a report on its enquiries into reports that a financial package is to be made available to Northern Ireland from the Irish Government. This report, which includes key recommendations, will now be considered by the Committee on the Programme for Government.
Mr O’Dowd stated: “The sub-group will now finalise counter proposals to the Chancellor’s offer, which will comprise a mix of tax reforms and investments and other measures to enable a step change in the local economy and lead to accelerated and sustainable economic growth. These counter proposals will be presented to the Programme for Committee next week for consideration.”
Note to Editor:
For further information on the Economic Issues sub-group contact the Assembly Information Office Room B2, Parliament Buildings 9052 1137 or visit the Assembly website:
http://archive.niassembly.gov.uk/transitional/economic/economy_homepage.htm
Terms of Reference
1. To consider and analyse the economic package outlined by the Chancellor at the meeting with the political parties on 1 November 2006.
2. To develop an alternative set of proposals to be put to the Chancellor by the Committee.
3. To consider the potential budget deficit in the event that the water reform legislation and other revenue related issues do not proceed or are deferred.
4. To make enquiries into the reports that a financial package is to be made available to Northern Ireland by the Irish Government under its National Development Plan to be announced in January 2007; to investigate and report on the proposed quantum and arrangements for allocation and financial accountability; to determine whether any conditions should be attached and to engage with the Irish Government.
5. To report to the Committee on the Programme for Government by Friday 15 December 2006 in relation to the proposed financial package from the Irish Government and by Friday 22 December 2006 in relation to the other aspects of the sub-group’s terms of reference.
Membership
The nominated members of the subgroup are: George Dawson (DUP), Michelle Gildernew MP (SF), Dr. Alasdair McDonnell MP (SDLP), Mitchel McLaughlin (SF), David McNarry (UUP), Peter Robinson MP (DUP).
The following members and substitutes attended the meeting on 14 December:
Fra McCann (SF), Dr. Alasdair McDonnell MP (SDLP), Mitchel McLaughlin (SF), David McNarry (UUP), Margaret Ritchie (SDLP), Peter Robinson MP (DUP), Mervyn Storey (DUP).
Chairpersons
The initial chairpersons approved by the PfG Committee were Jim Wells (DUP) and Francie Molloy (SF). Following the meeting of PfG Committee on 11 December 2006, Tom O’Reilly (SF) was nominated as the Chairperson for the sub-group. John O’Dowd (SF) substituted for Tom O’Reilly as Chairperson at the meeting on 14 December.