Stephen Farry
North Down · Alliance Party · Northern Ireland
“Speaking for a party that has a longer pedigree in advocating a public inquiry than both the DUP and Sinn Féin, I nonetheless welcome this announcement, despite the torturous path that we have had and, indeed, the missed opportunities.”
“The first was a reform of the petition of concern to take it back to the original intent when it was designed in 1998. It was clear at that stage that Arlene Foster banged the table and said, "No, never. We are not doing that. That is a way whereby we are going to have to fold on equal marriage: it's not happening".”
“<BR /> <BR />The main points that I make concern the substance of the order. There are probably three aspects that the Minister needs to address properly before the Assembly, and they really relate to what other options he has.”
“That raises the question of why they want to go as far as 2022, especially when I am not sure — I would welcome any clarification to the contrary on it — that there has been formal Executive approval of this.”
“<BR /> <BR />There are three major substantive issues that I do not believe have been properly aired on this: VAT; European Commission infraction proceedings; and, most important, the opportunity foregone to revisit the classification of Northern Ireland Water and the ability, through a separate water charge, to allow it to borrow commerc…”
“While my party was supportive of the Good Friday Agreement back in 1998, at that time, we expressed some reservations around the very detailed nature of the proposals and how those could, in due course, destabilise Northern Ireland and prevent us from realising our full potential. We have been very much vindicated in that analysis.”
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“That is not the end of the engagement with stakeholders, and, if anything, we will now be changing gears. As we take the projects forward, we want to engage with those who have the most direct say in how we design the process by which we can overcome the barriers. For an organisation such as Carers NI, there may be opportunities with the competitive piloting process on devising projects. There may be opportunities to influence the strategic forum that will be put in place to monitor the delivery and to speak up and identify particular challenges that are being faced.”
“I thank the Member for his questions and acknowledge his role as the Chair of the Committee for Enterprise, Trade and Investment and his particular responsibilities in this regard. The targets are not only ambitious but realistic. They are within reach and are based on benchmarking against what is happening elsewhere in these islands. We know that, if we are able to address barriers that are perhaps particular to Northern Ireland, we should be in a situation in which we can be on a par with or, indeed, exceeding what is happening in other jurisdictions. <BR /> <BR />This process has been devised through significant engagement with stakeholders, including a public consultation, and carers have had an opportunity to be part of that process.”
“We are trying to enable people to take that step into the world of work, which is not only more productive for them and their self-esteem but better for the economy. We have to address the reasons why they are not able to make that leap.”
“We know that that is the way that this will be most effective, so we will seek a range of projects coming forward, and I have no doubt that a good balance of those projects will come from rural communities as much as from urban areas. As the Member well knows, there are major differences in the barriers that people will face. <BR /> <BR />I apologise to Mr Buchanan because he referred to voluntary participation and how we encourage that. We accept that a large number of people who are economically inactive will not be able to engage in the labour market. That is accepted and acknowledged. However, the strategy is based on the presumption that there are people who want to engage in the world of work but that there are barriers that prevent them from doing so. As the Member outlined, childcare is a key example.”
“Nonetheless, there will be read across with what we are doing. With the competitive piloting process, we will be looking for projects coming forward, and, as we seek to address issues about those with family commitments being excluded from the labour market, childcare will be a key focus. I have no doubt that projects will come forward, and the whole nature of the competitive piloting is to try as many things as possible to ensure that that is the case. <BR /> <BR />The Member also referred to the urban/rural split, and I can reassure her about that. We are not suggesting a one-size-fits-all approach across Northern Ireland or, indeed, one that derives from an urban perspective. It is a bottom-up focus.”
“Let me say two things on that. First of all, the childcare strategy is the responsibility of OFMDFM.”
“In that context, we can take some degree of comfort in that, while we see some very high performing economies, particularly in northern Europe, there are many other economies in southern and eastern Europe where the economic participation level is lower than that in Northern Ireland. This is a phenomenon that is a problem elsewhere, and we can derive lessons from that, but there are, no doubt, some very particular circumstances in Northern Ireland that we need to be very mindful of. Again, the strategy is here to address those.”
“I thank the Member for his comments. He will be aware that we have set an interim target in relation to 2020 of having 70%. It is the clear intention that this strategy will be refreshed on several occasions as we move towards 2030, and I have no doubt that a further interim target of 2025 will be considered as part of that process. It will involve a lot of work and mobilisation of people to achieve those targets. <BR /> <BR />It is also worth stressing that the European Commission has a target of achieving 75% economic participation by 2020, so we are part of a wider movement across the European Union to improve participation.”
“It is in that context that this strategy is most relevant.”
“To put it in context, achieving the target by 2020 will involve the creation of about 58,000 jobs, and potentially 115,000 new jobs will be needed to get to the 2030 target. <BR /> <BR />Of course, this strategy should not be viewed in isolation of other efforts that the Executive have taken forward to address the economy. There are many other good things that we are doing. The Member will be well aware of the record results that Invest Northern Ireland had last year. We are aware of the efforts that are being made to attract a lower level of corporation tax to Northern Ireland and the jobs potential that will flow from that. So, with all the levers being geared towards improving the economy, it is also important that, within that context, we have specific measures to address the barriers faced by those who are economically inactive.”
“This is a great advertisement for the benefits of devolution: this would not be happening if we did not have a devolved Executive and Assembly that have the interests of the economy at heart and have the means to take forward innovative strategies. <BR /> <BR />In saying all that, we recognise that this is not going to be easy. This is an inescapable pressure that we have a fundamental duty to address. It is going to take a lot of work from a lot of the people, in government and beyond government, to achieve the targets that we are setting. We believe that the targets, contrary to what the Chair said, are incredibly ambitious. We are seeking to get above 70% by 2020 and to get above the UK average, which is 73%, by 2030. Even achieving a 1% move will be incredibly difficult.”
“I thank the Chair of my Committee for his comments. Again, I stress that this is a strategy that will be reported in greater detail to both of the Committees scrutinising the two lead Departments. <BR /> <BR />I stress to the Member and the House the unprecedented nature of the undertaking that we are making. This has been a problem in Northern Ireland for the best part of 30 years. It has defied the ups and downs of the economic cycle, so we know that it is a structural problem within our economy, but it is also one that we have to address if we are to make the most of the people whom we are there to serve and the wider economy. <BR /> <BR />We also have to recognise that this is the first time there has been anything like this in any jurisdiction in these islands. This is innovative policymaking in its rawest sense.”
“<BR /> <BR />We have a duty to do everything we can to help and support people to meet their full potential for the benefit of the individual through the positive factors associated with sustained employment and for the benefit of Northern Ireland in the economic and social advantages of having a more buoyant and competitive labour market. <BR /> <BR />Sustainable results cannot be delivered by government alone. We must coordinate the efforts of all key sectors and stakeholders to maximise the outcomes for those most in need of our support. In doing so, I am hopeful that the strategy will provide a long-term framework for greater economic participation in Northern Ireland. The challenge now is one of delivery. Through collaboration and partnerships, we are confident that sustainable change can be achieved.”
“Additional resources will have to be identified across Departments to ensure the successful implementation of the strategy going forward. <BR /> <BR />The development of a strategy to underpin these efforts is an unprecedented action by the Executive, and I cannot overemphasise that there is no quick-fix solution. Efforts to address the multitude of complex factors and barriers that fuel the high rate of economic inactivity in Northern Ireland must be not only innovative but incrementally progressive to ensure that sustainable results are achieved.”
“<BR /> <BR />Under project K, a series of research projects will be undertaken to identify new sources of data to inform the implementation process and accurately monitor the progress of the target groups towards and into employment, in line with the strategic objectives. This project will be taken forward by DEL and DSD. <BR /> <BR />The strategy has been developed in the context of constrained public expenditure. For that reason, a number of projects will initially be piloted to ensure that effective solutions are identified prior to the upscaling of investment. A number of other projects will initially focus on feasibility and scoping exercises to provide modelling to inform the viability, cost and benefits of implementation.”
“<BR /> <BR />Under project I, a series of regional younger people's advocates will be appointed to engage with young people who are at risk of disengaging with education, employment or training and potentially becoming economically inactive. The advocates will help to inspire and support positive life choices among the young people. This project will be taken forward by DEL. <BR /> <BR />Project J will establish a strategic forum based on a partnership comprising employers, the voluntary and community sector, central and local government, the health-care sector, relevant statutory and non-departmental public bodies and expert advisers to provide strategic oversight, leadership and guidance. This project will be taken forward by DETI.”
“These will include a mental health promotion strategy aimed at encouraging positive mental health through work and in the workplace, as well as initiatives to support employers to foster mental health friendly workplaces. This project will be taken forward by DHSSPS. <BR /> <BR />Through project H, an expert panel will be appointed to undertake a Northern Ireland scoping study of the health and work recommendations from Dame Carol Black's report 'Working for a healthier tomorrow' and identify and explore the feasibility of options to better integrate health and work services in Northern Ireland. Again, this project will be taken forward by DHSSPS.”
“Under project E, new and improved measures will be put in place to promote the financial advantages of employment, raise awareness of transitional benefits protections and better communicate the linking rules to reclaim benefits to encourage labour market transitions among the target groups. This project will be taken forward by DSD. <BR /> <BR />Through project F, new measures will be put in place to address wider labour barriers faced by older workers. These will include an age-positive public awareness campaign to highlight the benefits of employing older workers and promote age-positive recruitment practices. This project will be taken forward by DEL. <BR /> <BR />Through project G, new measures will be put in place to tackle mental health stigma in the workplace.”
“Successful approaches will be developed further and potentially upscaled. DEL and DETI will take that project forward. <BR /> <BR />Through project C, a geographically focused control group project will be developed, delivered and evaluated to provide benchmarking data for the competitive pilot testing phase. DSD will take that project forward. <BR /> <BR />Under project D, a new model of support and incentives will be developed to encourage employers to hire and upskill people from the target groups and to promote sustainable employment. DEL will take that project forward.”
“Theme six is about improving information, and it seeks to develop a robust information base and effective data management systems to improve the effective delivery and monitoring of the strategy’s implementation and management. <BR /> <BR />Each of the six themes will be implemented through a series of 11 projects delivered across a number of Departments. I will now briefly outline the projects. <BR /> <BR />Project A is the co-design development of an outcomes framework to inform and guide the pilot testing process. DEL will take that project forward. <BR /> <BR />In project B, an innovative regime of competitive pilot project testing using a pre-commercial procurement-based model will be developed to allow a number of small-scale initiatives to be tested for their potential to improve outcomes for the target groups.”
“Theme three will address wider barriers by seeking to challenge and change societal attitudes towards disadvantaged groups in the labour market and by helping to improve employment outcomes for older workers and people with mental health issues. Theme four is about breaking the cycle of inactivity, and it seeks to reduce future inflows to economic inactivity through preventative interventions aimed at improving health and work outcomes. It also seeks to promote positive life choices amongst young people who are at risk of disengaging with education, employment or training and of potentially becoming economically inactive in the future. Theme five relates to partnership, and strategic management seeks to create effective management structures to deliver, coordinate and monitor the strategy’s implementation.”
“It is, therefore, proposed to review and refresh the strategy on a regular basis to ensure that any necessary changes are appropriately reflected. <BR /> <BR />The strategic approach is based on a model of holistic intervention that is centred around six key themes. Theme one is about improving engagement and support by seeking to encourage and facilitate labour market transitions and improving employment outcomes for people in the target groups through an innovative outcomes-focused competitive pilot testing model. Theme two is about increasing employment opportunities and seeking to stimulate job creation through the development of a new model of incentives and supporting people in the target groups to make the transition towards and into the labour market.”
“The second objective is to reduce by 2030, through transitions into employment, the levels of economic inactivity due to family commitments through a 25% reduction in the number of lone parents and carers claiming income support against the 2015 baseline position. The third objective is to establish by March 2017 a robust baseline for the numbers of people moving from work into economic inactivity due to health-related issues and to reduce by 2030 the baseline figure by 20% through a reduction in the number of new claims to relevant health-related social security benefits. <BR /> <BR />It is recognised that any potential future changes to the social security system in Northern Ireland may have implications for these strategic objectives through the scope, nature and claimant count of any new or revised social security benefits.”
“<BR /> <BR />Whilst our future actions will take into account the changing landscape arising from welfare reform, they are not part of the current proposed changes to the welfare reform system nor are they motivated by them. Rather, our response is directed at addressing what has become a long-term structural problem within our economy. <BR /> <BR />Successfully achieving the strategic goal will require the fulfilment of three strategic objectives. The first is to reduce by 2030, through transitions into employment, the levels of economic inactivity due to work-limiting health conditions or disabilities by a 25% reduction in the number of people claiming employment and support allowance within the work-related activity group against the 2015 baseline position.”
“To put this in context, the current employment rate in Northern Ireland is 68·6% compared with a UK average of 73·4%. Achieving that goal will, therefore, be hugely challenging, but we are firmly of the opinion that we must aspire to put Northern Ireland's economic competitiveness on a level footing with that of the rest of the UK. It is worth stressing that our focus is on the overall employment rate, as opposed to a stand-alone reduction in the economic inactivity rate. We are not interested in reducing economic inactivity simply through shifting people into the unemployment category or by moving them from unemployment into inactivity.”
“<BR /> <BR />The strategy seeks, by 2030, to contribute towards a stable and competitive employment rate in Northern Ireland, which exceeds the UK average, through a reduction in the proportion of the working-age population classified as economically inactive. An interim strategic goal of achieving an employment rate of more than 70% by 2020 has also been included in order to assess the effectiveness of the strategy at a mid-point in the implementation process.”
“<BR /> <BR />Recent social security statistics show that the total for the three target groups is approximately 64,000, which equates to approximately 40% of all social security claimants in the economically inactive groups and approximately 20% of the total working-age economic inactivity figure in Northern Ireland. In saying that, we fully recognise that not every person who falls into these categories will be in a position to engage with the labour market or will wish to do so. I think that it is, therefore, important to highlight the person-centred ethos of the strategy and to confirm that the strategy will be based on voluntary participation. The strategy will be about supporting people to make transitions when they opt to do so. This is not about compulsion.”
“<BR /> <BR />The strategy will focus on three key economically inactive groups: people with work-limiting health conditions or disabilities who are included within the wider long-term sick and disabled category and who, with the right level of support and reasonable accommodations from an employer, should be able to work; and lone parents and carers who are included within the wider family commitments category, who are currently in receipt of out-of-work benefits and would be better off in work but are unable to make the transition due to a lack of appropriate support or opportunities.”
“The focus of the strategy is, therefore, on the forms of economic inactivity that are caused when an individual’s particular personal circumstances, often combined with various structural issues, geographical nuances and economic conditions, restrict their access to the labour market.”
“The outcomes from the comprehensive development process informed a final strategy that was agreed by the Executive on 16 April. <BR /> <BR />It may be helpful if I take some time to outline the key elements of the strategy and how we plan to implement them. The strategy makes a clear distinction between the different categories of economic inactivity: from benign forms of inactivity, such as students or early retirees, through to other forms of inactivity, such as severe health conditions or disabilities that cannot be addressed through any government intervention.”
“<BR /> <BR />The strategy has been informed by an extensive research, development and consultation process, including a baseline study of the profile of economic inactivity in Northern Ireland; an independent literature review carried out by Edinburgh Napier University; a strategic framework document; a 12-week public consultation exercise; engagement with the local business sector; independent focus groups with people from a range of economically inactive groups; regular engagement with the Committee for Employment and Learning and the Committee for Enterprise, Trade and Investment; and regular engagement with the Executive subcommittee on the economy, including its endorsement of a wide range of strategic proposals that have been included in the strategy.”
“For that reason, our two Departments have been leading, on behalf of the Executive, on the development of a new strategy aimed at tackling economic inactivity in Northern Ireland. It will be the only dedicated government strategy in the UK at a national level aimed at tackling economic inactivity.”
“The current rate of economic inactivity in Northern Ireland is 26·8%, which equates to approximately 312,000 adults between the ages of 16 and 64 who are not engaged with the labour market. This is the highest rate across all the regions of the United Kingdom and compares to a UK average of 22·1%. This level of economic inactivity has been a persistent feature of our economy over the past 30 years, within the ranges of 26% to 32%, irrespective of the changes in the economic cycle. I am sure that Members will agree that the figures outline the stark scale of the problem. <BR /> <BR />High levels of economic inactivity represent a major structural problem in our economy, which, if unaddressed, would limit our ability to develop and transform our economic prospects.”
“I would also like to take the opportunity to thank the many stakeholders for their invaluable insights and contributions throughout the development of the strategy. The strategic proposals were rigorously tested during the consultation period by a wide range of stakeholders, and I am delighted that a number of new innovative ideas and approaches were identified through the consultation and have been incorporated into the strategy. <BR /> <BR />Economic inactivity is a labour market classification referring to individuals who are neither in work nor actively seeking work. High rates of economic inactivity have been a feature of the Northern Ireland economy for decades.”
“<BR /> <BR />To reflect the need to develop a holistic approach to tackling economic inactivity, the strategy has also been developed in close partnership with other Departments, including, in particular, the Department for Social Development, Invest Northern Ireland and the Department of Health, Social Services and Public Safety. I would like to take this opportunity to thank those Departments for their valuable role in the development of the strategy and for their continued cooperation as we move forward through the implementation process.”
“With your permission, Mr Speaker, I wish to make a joint statement on a new strategy to address economic inactivity in Northern Ireland. <BR /> <BR />The Executive's Programme for Government includes a commitment for my Department and the Department of Enterprise, Trade and Investment to develop and implement a strategy to reduce economic inactivity through skills, training, incentives and job creation. This joint statement has been agreed with my partner in that regard, the Minister of Enterprise, Trade and Investment.”
“We have conducted some analysis of the current funding decisions that we have made, and I am satisfied that there is a fair distribution across the Assembly constituencies in Northern Ireland. It is not entirely uniform, and it cannot be, given the nature of the process under way. It also reflects a lot of work that was conducted by officials at the roadshows across Northern Ireland that took place last autumn, where we were raising awareness of the opportunities to bid. Again, that was all solid work to ensure that, as far as possible, we could ensure a fair regional balance with the funding offers that were being made.”
“There is a comprehensive list of the organisations that have been offered funding in the press release that we issued on 26 March, and I encourage the Member to peruse it. There will be some organisations that are particular to that subregional area in Northern Ireland; other schemes may have a wider application but will still impact on that part of the world. There are also appeals that are still in process, as I mentioned earlier. The situation may change if some of those appeals are successful in moving particular proposals in the framework within which we are making funding offers to organisations.”
“<BR /> <BR />Given the limited resources available to us, it was my judgement that the continuation of the NEETs forum — the money involved to make it a success — was a more productive use of resource. That is not to take away from the importance of the training allowance. I have asked my officials to continue to look at existing, albeit diminished, budgets to see whether there is a means by which we can have the continuation of a training allowance for young people on some of the schemes. That work is under way. As the Member appreciates, budgets are now incredibly tight, and we have to make a lot of difficult decisions. We have to make sure that we use resources in the most efficient and effective way possible.”
“The Member is aware that my Department had a significant budget allocated to it for investing in the Pathways to Success strategy. That money came to an end on 31 March 2015. Had we been in different financial circumstances, it would have been my hope and, indeed, expectation that a similar amount of money would have been found by the Executive to continue that work. All that money has now dried up. We have seen a migration of some of the organisations that worked under the collaboration and innovation fund towards seeking funding under the European social fund. Sadly, it is my view that, at present, we were not in a position to continue with the training allowance. That automatically came to an end with the end of the funding.”
“Nonetheless, in terms of our ability to find resources, I regard this as a priority for our continued ability to make some investments in working with those who are marginalised from the labour market, particularly young people.”
“It is important to recognise, first of all, that we are going through difficult times in our ability to deliver the Pathways to Success strategy, which is the Executive strategy for dealing with NEETs. The forum has been very successful in engaging different organisations from the community and voluntary sector in best practice and in sharing best practice. It has also created our ability to engage in a more structured manner with young people. The voices of young people were very clear about advocacy: we should seek to have a continuation of the NEETs forum. I expect that we will be able to continue that type of work, albeit in a slightly more constricted format, given the reduction of available resources.”
“Ultimately, those are decisions for the college to take, but we can seek to express views to it, and that is perfectly legitimate.”
“That, again, is very much something for the North West Regional College to consider. It is for it and the other five colleges to consider their curriculum offer and the distribution of that offer across the campuses. It is important that Members appreciate that the role of government is not to micromanage how we deliver further education, in the same way as we do not seek to micromanage the delivery of higher education. That is why we have colleges, and that is why they have their own board of governors and principals and staff who work to those boards. That is the essence of pluralism, but, if the Member has particular concerns about what is or is not being provided in Strabane, I am happy to take them on board and speak to the powers that be in the North West Regional College.”
“At this stage, I must make it clear to Members that there are no immediate plans for capital investment in Strabane. We are committed to working with the North West Regional College to ensure that it delivers a balanced curriculum across its area. If there are particular questions or points that the Member wishes to raise about what should or should not be provided in Strabane, I am more than happy to take them on board.”
“Absolutely. A few weeks ago, I visited a jobs fair in Claudy. We are focusing very much on engagement in rural areas. The approach that we take as a Department is not the one-size-fits-all approach of doing big events in Belfast or Derry and expecting people to go there. We will show a degree of flexibility in accommodating people in different settings, and that includes the urban/rural split.”
“I am happy for my officials to engage with the Member and consider her proposal. We are committed to holding jobs fairs in different locations across Northern Ireland. We want to see a critical mass of employers who are willing to use that type of forum to engage with those who are unemployed or looking to change jobs so that we can make the event a success. We have run successful jobs fairs in different places over the past number of months, and the feedback on those has been very good, so we are more than happy to look into what the Member has proposed.”
“The real challenge is to ensure that we can keep up with and meet the expectations of businesses and that we do more to encourage our young people to consider apprenticeships as a legitimate pathway that is on a par with some of the more traditional pathways, such as university. Both are good ways of achieving higher-level skills, and we need to ensure that we have a balanced approach in our economy.”
“I am certainly pleased that we are seeing sectoral partnerships emerging. We have sectoral partnerships in place for the IT, engineering and food and drink manufacturing sectors. We have also seen some very strong work happening on apprenticeships in life sciences, finance and accountancy. We hope shortly to see sectoral partnerships in those areas. <BR /> <BR />It is important that we encourage businesses to come forward and create opportunities for apprenticeships. It is important that businesses are in the driving seat in creating fresh opportunities. It is not about the state trying to second-guess where apprenticeships should be created but about companies identifying their future training requirements.”
“That is a valuable asset to develop what should be a critical investment in delivering for our young people and ensuring that companies get the direct skills that they require to be a success in Northern Ireland.”