Arlene Foster
Fermanagh and South Tyrone · Ulster Unionist Party · Northern Ireland
“Yet, like too many projects, it has been tied up in legal wrangles. Too many infrastructure projects are being swallowed up in the courts. We need to improve the expertise in infrastructure delivery. We need better infrastructure for the next generation, but key projects being delayed by 10-plus years is unsustainable.”
“Any agreement involves compromises but NDNA had two central pillars that, I believe, remain important: ambition for devolution and a new cultural deal. The breadth and depth of issues that NDNA set us all to deliver on would have been enough to fill an entire term or perhaps more, let alone two years of government.”
“That confidence-and-supply agreement will leave a legacy but also highlights our challenges. Some £150 million has been rolled out via Project Stratum to bring broadband to rural areas and leave Northern Ireland as the best-connected region in Europe. When it is completed, the project will be transformational to our economy.”
“However, such short-term advantage comes at the cost of long-term harm to relationships. It is not a real partnership. Imbalance and instability are built in that will fester and deteriorate. If Brussels continues to think that the protocol is enough, it is in denial.”
“Colleagues inside and outside the House know very well that all periods of leadership must come to an end. That is why, when we are privileged and, indeed, honoured to hold such a position, we must not waste a moment in frivolous brinkmanship but forge ahead on behalf of those whom we represent.”
“The recommendations of the Commission on Flags, Identity, Culture and Tradition (FICT) are to be taken forward as well. I encourage all of you to do all of it, to take it forward in its totality and to speak of and implement it as one complete, independent package: a new cultural deal for Northern Ireland's new century.”
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“I am not aware of any plans to draw down any funding. I think that the Member will recognise that we have quite an exhaustive suite of access to finance provisions put forward by Invest Northern Ireland. Indeed, we have loan provisions put down for different sectors, but if there is something in particular that the Member feels has not been financed that he thinks should have been financed by that fund, I will be very interested to hear about it, and we can have that conversation.”
“I certainly do not think we should be reviewing our target just yet. We have only set the Horizon 2020 target. It is quite a stretching target, if you look at where we were in terms of FP7. There are certainly a number of programmes that we could be accessing, including, as I said in my substantive answer, the COSME programme, which we have not really taken advantage of to date and which we are now plugged into. It is all about knowing what is coming down the track and what is available for our particular sectors. It is about the knowledge and getting into the European system and trying to work together to make sure that we get as much drawdown as possible. That is why I am looking forward to the conference on Wednesday, which, I hope, will provide us with the opportunity of networking.”
“That is to be welcomed, but I hope that there will be other opportunities to draw down even more funding.”
“Absolutely. The £80 billion — that is £80 billion — of funding that is available for countries across Europe under Horizon 2020 presents a huge opportunity for Northern Ireland companies and research organisations, not just in terms of securing funding, but the collaborative networks that can be drawn together. We took the view that we needed to up our game with regard to funding from Horizon 2020, and we have put in place those 12 contact points in particular sectors. So, if a company in that sector believes that it may have an idea that could benefit from funding, it can get in touch with the relevant sector contact point and move forward. <BR /> <BR />Initial figures just received from the Commission, which are still being processed, show that we have won €6·5 million in the first six months of Horizon 2020 calls in 2014.”
“So, let us learn the lessons from FP7 and try to ensure that we get even more funding drawn down from Horizon 2020.”
“Ideas have to come forward for them to be developed into applications, so, I encourage border businesses to look at all the programmes available — my goodness, there is a wealth of them — to try to help their particular businesses. However, the businesses must do that in connection with an academic institution. The further education colleges and universities have to be very much involved. <BR /> <BR />I am looking forward to jointly opening the Collaborate to Innovate conference on Wednesday of this week. It will be very much focused on Horizon 2020 and on how we can make the most of it for all of Northern Ireland. I look forward to ideas coming forward from that conference on how we can do things better. We can always do things better in the next round.”
“We have ambitious plans to build on that success going forward. We are on track to draw down a further £33·3 million ERDF from the current competitiveness programme and are in the final stages of negotiating a new package of ERDF funding under the investment for growth and jobs programme, which will be worth over £240 million up to 2020. <BR /> <BR />Invest NI has also recently secured £165,000 per annum, until 2020, from the competitiveness of SMEs (COSME) programme to run the Enterprise Europe Network, which provides invaluable advice and guidance to SMEs. In addition, the Executive's innovation strategy sets a target to draw down €145 million — £114 million at current exchange rates — from Horizon 2020, and we have put in place a network of 12 research experts to help us achieve that.”
“Since 2007, when the current EU programming period commenced, over £250 million of European funding has been drawn down through the work of my Department. Some £167 million of that has come from the ERDF sustainable competitiveness programme, £40 million from the framework programme 7, £44 million from INTERREG IVa programme and £500,000 from the competitiveness and innovation programme.”
“In relation to the Member's last point, I want to very much confirm that that will be the case. The website nibusinessinfo.co.uk will be there for the whole of the business base. We very much want that to remain the case despite the fact that some powers from Invest Northern Ireland will go to councils. <BR /> <BR />The new arrangements will only work if there is a partnership ethos, and I hope that the councils will see it as such. Invest Northern Ireland certainly stands ready to assist with the transition of the powers that are going to councils, but it will also give a strategic lead for Northern Ireland. I hope that the councils will work with it on where we want to see Northern Ireland in general. We will also support them in their particular areas.”
“I thank the Member for his question. The initiatives that I have just mentioned that try to support entrepreneurs are also very much available to those who live in rural areas. Indeed, some of our best artisan producers live in rural areas, and I am sure that he will know of some in the glens who are working very hard to provide niche products for the home and export markets. We have seen them grow, and some of them are in his area. For example, the way in which Glenarm Salmon has grown its exports and has been able to become a global player in salmon production has been a tremendous exemplar for everybody else. So, I very much say to the Member that the range of supports are available right across Northern Ireland.”
“We provide a range of support to people who want to export, whether that tries to give them help with trade initiatives, skills or innovation. So, Invest Northern Ireland has a wide range of initiatives available. However, importantly, there is also a range of initiatives that we funded through the councils. I have seen some very good examples across Northern Ireland of the use of the European regional development fund (ERDF) in that respect.”
“I thank the Member for his question. Many times, you will have young people who want to start their own business. In many cases, you will have people who are entrepreneurs of necessity; in other words, they have been made redundant and have to find a new way. We have a range of programmes to help all those people. We have the regional start initiative, which provides support at a very basic level for individuals who want to start their own businesses. Sometimes that is not needed; sometimes, it very much is needed. We also operate the Go for It brand, which provides programmes and initiatives to try to stimulate enterprise, particularly with under-represented groups, whether they are women, young people or people with a disability.”
“I very much hope that the enterprise agencies will see this as an opportunity for a renewal of their vision for their areas. I was with LEDCOM, the Larne Enterprise Development Company, recently to celebrate the Advance programme, which had been run in conjunction with the Department for Employment and Learning. It was an absolutely tremendous programme, whereby 100% of those young people achieved jobs at the end of it. I thought that that was very good value for money, and, more than that, it was using a social enterprise model to try to get these young people involved. So I very much hope that Larne, Carrick and all the enterprise units across Northern Ireland will see this as a new opportunity. They can learn from their colleagues across Northern Ireland about best practice and then use it in a meaningful way to help people.”
“Over the last five years, 556 locally owned business starts offered support, with an estimated 318 jobs.”
“Invest Northern Ireland provides a wide range of support to small businesses across Northern Ireland, including in east Antrim. Indeed, during 2013-14, 81% of Invest NI offers were to local small businesses. This support covers help to create jobs, research and development and skills and exporting. In east Antrim, for example, Invest Northern Ireland provided over £230,000 to Yelo Ltd, ultimately to create 15 new jobs and to assist projects aimed at research and development and developing trade activities. In addition to financial support, Invest NI provides help to start a business through the regional start initiative, advice and guidance through its wide range of free workshops and seminars on topics such as exports, design, finance and information through nibusinessinfo.co.uk.”
“Mr Keddie has put together an interesting proposal on the industrial land that surrounds the airport. Obviously, we are still trying to secure the first enterprise zone for Northern Ireland in Coleraine, which was announced some time ago, and we hope that progress will be made there. I will certainly support Mr Keddie in his vision for Belfast International Airport in trying to make more use of the ground that the airport owns around the runway so that he can make it a more viable project.”
“Absolutely. We have been working closely with Belfast International Airport on that. I want that route to be back in place. If I were asked where that is on my list of routes, I would say that it is probably first or second. I believe that that route would be viable and sustainable in the longer term, and it is just about trying to find a suitable partner to bring their aircraft in. Indeed, we have had a number of meetings with air carriers from Canada and outside Canada to see whether they will take a route back into Canada from Belfast International Airport. I absolutely agree that Graham Keddie seems to be very focused on Canada, and I will do all that I can to support him.”
“<BR /> <BR />We are also working with the airports to see what we can achieve from the UK regional air connectivity fund. That is a competitive fund, so we will have to compete with other regions of the UK, but that does not put me off. We are well placed to put forward a strong case for access to the fund, but that is done in conjunction with the airports.”
“It will come as no surprise to the Member or, indeed, to the House that that is something that I have been talking about for some time. We very much need to increase the number of direct access flights into all airports in Northern Ireland. To that end, as I indicated, Invest Northern Ireland has become more strategically involved with the airports. Indeed, it attended the World Routes conference in Chicago in September this year, alongside Belfast International and Belfast City airports. They do that to give an economic background to those airports when they are lobbying companies to try to get them to put a flight into Northern Ireland. That is working very well, and the airports appreciate the work that Invest is engaged in.”
“<BR /> <BR />Changes introduced earlier this year to state aid rules for airlines also provide an opportunity for government to provide start-up aid to incentivise new routes. We have been calling for that for some time. My Department will work closely with Northern Ireland's airports to support any bids for new routes to the UK regional air connectivity fund, which the Department for Transport launched in November.”
“The main focus of the air connectivity study has been an assessment of the economic impact on Northern Ireland of short-haul air passenger duty, which the Northern Ireland Centre for Economic Policy carried out. I anticipate receipt of the report early this month, after which I shall discuss the findings with the Finance Minister and arrange for publication. <BR /> <BR />To support our airports in improving air access, I have tasked Invest Northern Ireland with taking a lead role in working with the airports on new air route opportunities. Invest Northern Ireland's business expertise is already proving to be a valuable asset that the airports, in conjunction with Tourism Ireland, can draw upon.”
“That is something that the hospitality sector has been lobbying quite hard on, and I support it in that, because I believe that hotels, particularly those in border regions, are having a very difficult time with their pricing structure, given the nature of VAT in the Republic of Ireland. Of course, it is a matter for the Westminster Government. We will continue to raise the issues in all that, and I hope that we will have support for that right across the House.”
“Moy Park continues to be one of our exemplar companies, particularly in the agrifood sector. Back in July, I had the pleasure of making an announcement with Moy Park of 628 new jobs across its three sites in Dungannon, Craigavon and Ballymena. It continues to invest in the local community. It continues to invest in the workforce, in its processes and in innovation, and therefore we will continue to support it. I am particularly pleased that it continues to provide so much employment for people outside Belfast. It is certainly a company that goes from strength to strength.”
“I am certainly happy to meet the Member with the company that she speaks of. Indeed, I hope that that company will continue to engage with Invest Northern Ireland to discuss and explore other options. I very much hope that displacement has not occurred in the sector, although it has been pointed out that there is a risk of displacement because there is overcapacity in the sector. Certainly, if she wants that meeting, we will have that discussion, and I will bring with me officials from Invest Northern Ireland who will be able to talk her through the other awards that were made, in particular to the sandwich sector.”
“Businesses in the sandwich sector can avail themselves of a range of advisory assistance and free workshops from Invest Northern Ireland on a number of topics, including design, finance and exporting. A wide range of information is also available through www.nibusinessinfo.co.uk. <BR /> <BR />Invest NI conducted a study of the highly competitive sandwich sector in 2012, and an update of that study has just been completed. The study found that overcapacity is an issue in the sector and that the risk of displacement must be considered carefully by Invest NI. <BR /> <BR />Sandwich sector projects that apply for financial assistance will continue to be assessed on a case-by-case basis, and the potential for displacement will be rigorously challenged, in line with the study's recommendations.”
“I welcome the fact that there has been such good engagement in the debate. I hope that it is indicative of the fact that many more Members are taking an interest in this issue and not just Committee members. <BR /> <BR />I pay tribute to Mr Anderson, who is leaving the Committee. I wish him well in his new post. I look forward to working with Mr Givan when he comes into position. <BR /> <BR />My Department will respond in detail to the recommendations. I thank the Committee for bringing this report to the House.”
“I understand that NIE cannot wave a magic wand and solve every connection problem, but improvements may be possible in timescales for response, clarity and transparency in connection charging. I am hopeful that NIE's Project 40 work can produce technical and commercial solutions for the renewable industries. <BR /> <BR />I welcome and support innovation and development of new technologies where it is in the interests of customers. A very good example of that was seen at an event hosted by Mr McCrea in relation to storage at which I spoke recently. I thought that was an excellent example of how we can use new and innovative ways to make a difference. I hope we can move that forward. <BR /> <BR />There is no silver bullet. Good policy remains very much a case of trying to balance costs against security of supply and environmental issues.”
“That equally applies to the recommendation suggesting that the Utility Regulator and SONI must work with NIE to review and improve NIE's policies and processes relating to grid connections. Similarly, the Department has no role in how a commercial company should conduct its business. <BR /> <BR />While my Department has no direct role, I agree that NIE needs to look hard at some of its practices in terms of customer service. We have all had people come to our offices to complain about the way in which they were treated by NIE. I made that clear to NIE in a letter I sent as an MLA as recently as this month in relation to connection charges. So, it does need to look at the way in which it works with consumers on the ground.”
“<BR /> <BR />On competition and contestability, I reiterate my Department's support for seeing contestability introduced in Northern Ireland. That is important. The regulator is processing that, and I look forward to seeing it conclude in a timely manner. <BR /> <BR />I have some concerns regarding the recommendation that DETI, SONI and the regulator should strongly encourage NIE to voluntarily work with appropriate providers to draw up a list of approved companies for contestable delivery of grid connections and transmission at distribution levels. I remind Members that unbundling obligations arising from European Union directives and regulations required the separation of SONI from NIE ownership, and there is no role for SONI in this matter.”
“We need to look at this in the wider sphere. This is not about just Northern Ireland or the island of Ireland. We are moving into a system whereby we will be connected to Great Britain and, indeed, further afield. We need to bear that in mind. <BR /> <BR />The vision is there, so I disagree with that recommendation. The strategy is very much there as well, so I am a little bemused by some comments that were made in relation to that. <BR /> <BR />The report calls for the reconvening of the sustainable energy interdepartmental working group (SEIDWG) as a matter of urgency. I received similar requests from NIE and NIRIG, and I will be chairing that meeting on 15 January next year. SONI, NIE and NIRIG have been invited to attend and present to the group.”
“That has very much been part of our work. Indeed, the Member will be familiar with the DONG energy plant in the Titanic Quarter, which has been a tremendous piece of work.”
“Therefore, we will be interconnected with that and using nuclear energy in the future. <BR /> <BR />It is all very well to call for a vision for 2050, but I do not have a crystal ball to know what will happen anywhere, never mind in Northern Ireland, in terms of the energy mix moving forward to 2050. We can have a vision, and we have that. We have the strategic vision for 2050 —”
“It sets out views on the potential direction of the energy policy and energy mix scenarios. However, I have to say that we are talking a long way ahead of ourselves. Goodness knows what else will come into the energy mix at that time. <BR /> <BR />We are looking very much at integrating — I had a discussion about this with the SEM committee in Dublin last week — the systems in Great Britain, the island of Ireland and, indeed, France and improving our interconnection between all the parts. Let me say this: Mr Agnew commented that renewables was the only option for the future, but that is not entirely true. If he is totally open, particularly in the context of integration with Great Britain, nuclear is an option as well. Nuclear is the part of the scene in Great Britain.”
“It is probably a mixture of the two. Obviously, the regulator would not allow it in any event. If we said to NIE, "You must strengthen the grid in this part of the country", it would go to the regulator to allow that to happen. The regulator would have to assess what that would cost consumers in Northern Ireland. If it felt that it was excessive, it would not allow it to happen. We are trying to look at other ways of strengthening the grid as well as putting the burden onto the consumer. <BR /> <BR />I do not agree with the Committee's observation that there is no vision or strategy for the electricity grid. We have a strategic energy framework, and we are looking at reviewing it next year. We also have the strategic vision, which I recall discussing with Committee members. It was completed last year, and the Committee received a copy.”
“At the moment, we are looking at funding that may be available under thematic objective 4, which could well tie in with our commitment on our renewable energy mix by 2020. We are working with the regulator, the transmission system operator — SONI — and NIE to identify potential grid-strengthening projects that could avail themselves of that funding. So, we are trying to think of other ways to strengthen the grid rather than putting it on —”
“We have a challenging target, which was set in the strategic energy framework, of 40% by 2020. It is sensible that we review that target at this stage in terms of costs and benefits as we approach the mid-point of the 10-year strategy. We are looking at that at the moment and will review it next year. I hope to publish the Department's conclusions in relation to that 40% target next year. <BR /> <BR />Strategic decisions flowing from that will be informed by that work. I cannot preempt the outcome and what will come forward, but there has been a lot of discussion today about strengthening the grid and how we should go ahead and strengthen it. Of course, if we did that, Northern Ireland consumers would have to pay for it. We have been looking to see whether we can access any European funding to strengthen the grid.”
“I note that many of the report's recommendations fall partly or entirely to the Utility Regulator, and, if some of the solutions require investment, it is right that the regulator has the authority to determine the costs for the consumer. <BR /> <BR />I said that I had met a lot of developers who are frustrated by delays or by costs to the grid, but it is easy to get carried away and not to look at where we have come from. In just under 10 years, the contribution from renewables to the grid has increased from 3% to just under 20%, and the 20% target, as you may recall, was to be met by 2015, so we are very much on target. <BR /> <BR />As the report notes, renewables growth on the entire island of Ireland is faster than in many other parts of the world.”
“However, I assure the Committee and Members that I will provide a full written response in due course. <BR /> <BR />Many of the issues raised during the Committee's evidence gathering fall outside the control of my Department, a point that Mr Allister made with some frustration. I sometimes share his frustration. The Utility Regulator is an independent body, and it must be independent if it is to protect the consumer in the face of what was an NIE monopoly and is now moving to more competition. It is sometimes frustrating, because everything is linked and different parts of the system are responsible for different parts of policy, regulation or delivery. However, many of the issues raised are not the responsibility of the Department. I am not saying that to avoid responsibility but because it is fact.”
“It fits in well with the other two documents that I received from the Committee on security of supply and pricing. We now have part III of the report — grid connection — and all three areas are linked, which the Committee Chair referred to. All three are dependent on each other and cannot be looked at in isolation, and it is important that the recommendations are framed accordingly. <BR /> <BR />Given the limited opportunity to consider the Committee's report — Mr Lunn made that point — I do not propose to go through the recommendations in any detail now. As I said in the energy pricing debate, it is puzzling that an important debate must take place so soon after the report has been published, as it leaves very little time for a considered response.”
“<BR /> <BR />The message I take from the Committee's report and recommendations is that there are no quick and easy solutions and there is certainly no solution that will not ultimately have an impact on consumer bills. A number of Members mentioned that, if you are going to do x, you have to pay for it by putting up people's bills. We should always have that at the back of our mind. Mr McKinney referred to upgrading the grid, but we should remember that the costs of the grid are paid for by Northern Ireland consumers — not UK consumers or the island of Ireland, but Northern Ireland consumers. We should keep that to the front of our mind. <BR /> <BR />The Committee quite rightly considered that area as part of its overall review.”
“I welcome the opportunity to contribute to what has been a very good debate, insofar as there have been challenges and not everyone has gone in the same direction. It is good to have that discussion on the Floor. In one sense, the debate has arisen due to the success in increasing the amount of renewable electricity we generate and consume. Before I go into the contents of the report, let me say that I am familiar with the issues raised today and highlighted by the report. Indeed, I have had numerous meetings with and many items of correspondence from renewable developers of all sizes who want to connect to the grid, including farmers.”
“I was just establishing from my colleagues where the A2 and A8 are. Forgive me: I am a humble Fermanagh representative. I understand that they are to Carrick and Larne — am I correct? Yes? Well, I know more about the A4 and the A29. When we have an upgrade of infrastructure, it certainly helps in relation to the offering to inward investors and tourism. We will, of course, take cognisance of any upgrades to infrastructure, no matter where it is in Northern Ireland.”
“From an Invest Northern Ireland perspective, it will certainly change the way in which it interacts with companies globally, particularly in America. We are ready for that change if and when it comes. Even though the decision on the devolution of corporation tax should be announced in December, we will have a period during which we can change the way in which we do business from an Invest Northern Ireland perspective. The Employment and Learning Minister has also been looking into what he needs to do in relation to skills if we are able to have a lower rate of corporation tax.”
“I very much support the campaign, and I hope that we will have an answer from the Prime Minister in early December.”
“It is a campaign that has been going on for quite some considerable time. It is supported by the five parties in the Executive and by the wider business community in Northern Ireland, which realises the benefits that will flow from a lower corporation tax rate here in Northern Ireland. I have listened to some people talking about the corporation tax issue, saying that it is all speculative and asking how we know what will happen. We have had numerous people examine the evidence base. They have told us that tens of thousands of jobs will come to Northern Ireland over a period if we are able to have the lower rate of corporation tax.”
“Yes, absolutely. If we have companies that want to get into the supply chain of some of our larger companies like Almac or FG Wilson, we will try to support them to do that. That is done through the Boosting Business campaign, which the Member may recall that we launched at the time of the recession. It comprised, yes, the jobs fund, but also a number of advisory helps to give assistance to companies that perhaps would not normally seek assistance from Invest Northern Ireland. Boosting Business is very much looking at that whole area of trying to help businesses that — I do not like using the phrase — are lower down in the food chain from some of our bigger companies.”
“I think that the Member is referring to displacement. It is something that Invest Northern Ireland takes a lot of cognisance of. It is one of the reasons why we look at a firm and try to assess its capabilities to export into a different market. We try to provide it with support to do that. It is one of the reasons why we do not get involved with some firms and why sometimes people challenge me on that and say, "Why do you not support Mrs X who is a hairdresser in Ballymoney?" Well, if we started to support all the hairdressers around Northern Ireland, we would just displace people around Northern Ireland. Displacement is very much something that we look at. I know that, when Invest Northern Ireland is looking to support companies, it is very cognisant that it does not displace business from other companies.”
“Ultimately, that is a matter for the Utility Regulator in conjunction with the energy firms. She has indicated to me that she wants to move away from a period when there was a large cut in one half of the year and then a rise in the other half of the year. That does not help consumers to plan, if you like. They like certainty and to be able to plan into the future. I am sure that if the Utility Regulator were here, she would say that one thing that she does not want to see is price volatility.”
“Part of the difficulty has been that the wholesale costs make up around two thirds of the energy cost to the consumer. I am hopeful that, given that the price of crude oil is falling back, we should see some reflection of that in wholesale costs, particularly for electricity. However, I caution against price volatility. If we have a drop in the price of crude oil and that allows us to have lower energy costs in one month, we certainly do not want to see energy costs go back up when the crude oil price jumps back up again. We need to be careful not to have price volatility. I am hopeful that if the crude oil price stays low for a period, that can then be reflected in electricity prices to the consumer.”
“In the work that has been ongoing between the regulator and the Department, we have often been frustrated about what we can intervene on in relation to price. We have talked about energy costs in the House on a number of occasions.”