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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“As the Member knows, our apprenticeship strategy was launched in the Assembly in June 2014. We are phasing in the introduction of the new strategy between then and September 2016. Work is well under way in developing pilots in higher-level apprenticeships. We also have in place an interim strategic advisory forum. I was pleased that Bryan Keating has assumed the chair of that at our meeting at the end of March. Over the next number of months, that group will work on various aspects — legislation, for example — and how we can better encourage the uptake of new opportunities among employers. We have a successful bid to the change fund for £7·5 million to support apprenticeships and youth training over the forthcoming 12 months.”
“Very much so. The Member will note from the large number of investments that we have seen over the past 12 months in particular how closely my Department has worked with Invest Northern Ireland to make those a reality. We offered Assured Skills programmes in a considerable number of those investments. The feedback from companies is that that type of intervention is critical in their decision-making. That is something we have to build on.”
“As we look ahead to lower corporation tax, the work that we do through Assured Skills will become even more important.”
“Assured Skills has been an outstanding success and can be viewed as almost a unique contribution to the approach to inward investment relative to different approaches that are taken around the world. It is very much based on working with companies to address their skill requirements. We know that we can attract companies to Northern Ireland on the basis of the quality of our workforce and our people coming through colleges and universities in a general sense, but companies will often want the assurance that we can provide the particular skills that they require for their business to be a success. I am pleased to say that we have moved from Assured Skills being a pilot programme over the past number of years to it being mainstream provision.”
“With regard to student finance, I will shortly be launching a consultation on part-time and postgraduate taught student support. That will ensure that policies relating to a new student support package for part-time and postgrad learners will be in place for the academic year 2016-17. Student finance has long been a crucial enabler of higher education study, and I want to ensure accessibility into and through higher education for all types of learners. During my discussions with NUS-USI at its annual conference, representations were made on potential modifications to the frequency of student support payments. I am happy to explore that issue in more detail, and the first step in that process will be a public consultation exercise.”
“This has led to serious questions over the future financial sustainability of higher education that I do not believe can be addressed through the limited scope of the higher education funding review. Although my Department will now be taking forward aspects of the review separately, I have identified the need for a wider discussion with all stakeholders about how Northern Ireland can support a financially sustainable and internationally competitive sector. The work undertaken in the higher education funding review will be crucial in informing and facilitating this wider discussion.”
“The higher education funding review commenced in September 2013. In December 2014, I decided that it would not be appropriate to undertake a consultation of the funding review amid the uncertainties about my Department's future budgets. The consultation was, therefore, put on hold until the budget settlement for 2015-16 became clearer. <BR /> <BR />The higher education sector is facing a one-year budget reduction of 8·4% for teaching and research grants. That equates to a reduction of £16·1 million.”
“The Open University is very much part of the higher education family in Northern Ireland, and it now receives its funding directly from my Department. It is obviously under a degree of financial pressure as well. In some ways, it is perhaps slightly more adaptable in the sense that it has part-time provision. Because of the nature of some of the new opportunities that are emerging through, for example, our apprenticeships strategy, particularly higher-level apprenticeships, it can take up some of those opportunities. It also has a much stronger tradition of virtual learning than many of the more traditional universities in the approach that is taken to learning. It is well placed to take advantage of new developments in higher education, such as MOOCs.”
“I am happy to encourage the universities to go down that route. They are clearly aware of the very tight financial situation that they find themselves in as a consequence of the current funding cuts that are being passed on, not least in terms of the attitude that his party is taking to welfare at present. It is, ultimately, for the universities to run their own provision. It is not the job of the Department to micromanage exactly how they go about that. I fear that setting a target would be a disproportionate way of interfering and that we would end up with the Department running the universities rather than letting the universities get on and do the job that we want them to do for the economy as a whole.”
“As my Department does not hold this information, officials have received confirmation from each of the universities that they do not set a minimum target for course directors to include e-books as part of the core reading material for undergraduate degrees. Students are therefore free to choose their own preferred method of accessing reading material. Universities are responsible for their own policies and procedures, including course delivery. There is no requirement for them to set targets in relation to the medium of delivery.”
“However, if they see question marks around our ability to invest in skills, they are going to ask even more searching questions and, potentially, look elsewhere when making investment decisions if they do not have the confidence and the certainty that we can produce for them. We have done extremely well over the past number of years, but that situation is not sustainable if we continue down the same road that we are on at present in cutting our skills budgets.”
“We have to have a certain degree of care in how we say this and put it across, but, in very simple terms, yes, this is having an impact. It is one thing to say that all we need to do is rebalance the investment in higher education and focus more on STEM subjects, and that is an important thing to do in its own right. However, in a situation where we are actively disinvesting in higher education and removing places — every place is of relevance to the economy and the provision of higher-level skills and, consequently economic growth — that sends out a very worrying message to potential investors. <BR /> <BR />We will seek to attract investors by saying that we are on the brink of having a lower level of corporation tax.”
“So, again, that reinforces the importance of a solid settlement for our higher education institutions and our wider skills environment in the Budget for the 2016-17 period and beyond.”
“As the Member will be aware, one of the steps that we have taken is to give the universities a little bit more flexibility in how they meet the targets that we have set for them for widening participation. So, they have been able to redirect some of their investments towards protecting front-line places. They have also given an assurance that they will not seek to diminish it, indeed, they will seek to improve upon the strong track record that we have. Ultimately, the biggest threat to widening participation will be the loss of places, so if we do not have the places for people to access, we will see problems with participation. That will disproportionately affect people from the more marginalised and vulnerable groups in our society.”
“That will force some of our young people to go to Great Britain to study, and not only will they have to face higher fees, but the likelihood is that they will not return to our Northern Ireland economy. Other young people may find themselves priced out entirely from higher education and will simply not take that opportunity. Those skills will be lost to our economy as well. Indeed, the life opportunities of those young people will be severely compromised.”
“While the situation that the Executive find themselves in with regard to the Budget is, in part, explained by the decisions or non-decisions around welfare, there are other factors regarding a number of decisions that the Executive have taken or not taken, including addressing division in our society, which are further compounding the situation. That will have major impacts on our ability to provide the skills needed by our economy, and I am deeply worried by the path that we are currently on. Indeed, if we have a lower level of corporation tax, those pressures will be even more acute. <BR /> <BR />The Member is also quite right to identify that this will impact on individuals. We will shortly see the universities, very regrettably, having no choice but to remove a number of places.”
“In the main, I concur with the comments that the Member has made. Our universities are in a very perilous state at present. They have had their ability to generate income restricted by the decision of the Executive to freeze tuition fees. There is cross-party support for that, but we have not seen the same level of revenue investment to meet the shortfall and to match the level of investment happening elsewhere on these islands. <BR />We also now have a situation where that structural problem is being compounded by further Budget cuts.”
“Therefore, I will be launching a wider debate as to how Northern Ireland can support a financially sustainable and internationally competitive higher education sector.”
“The annual deficit for university research funding now sits at around £9·2 million per annum. The deficit that already existed has only been compounded further by the Budget settlement, and the higher education sector is now facing a further reduction of £16·1 million in the forthcoming financial year. <BR /> <BR />Some 38% of our higher education sector's income comes from grants, mostly provided by my Department. We cannot continue to expect our higher education sector to meet local skills needs, generate wealth and job creation and compete on a global stage for staff and students while continuing to diminish our level of investment. It is my intention to have a wider discussion about the future funding of higher education locally.”
“A stable and globally competitive higher education sector in Northern Ireland is fundamental to future economic prosperity. To compete successfully on the global stage, teaching must be of the highest quality, the learning environment must be flexible and supportive, and the research base must be dynamic and impactful. To ensure that, the sector's financial sustainability is crucial. However, the financial position that our higher education sector now finds itself in is eroding due to the cuts to budgets that we have seen, not least in the most recent Budget that the Executive struck. There is already a funding gap between our higher education institutions and their counterparts elsewhere in the UK to the tune of £1,000 to £2,500 a student.”
“I am very happy to give the Member that reassurance. It is also important to read the new strategy on apprenticeships and the forthcoming strategy on youth training in conjunction with another piece of work that we are working on in the Department: the development of a disability, skills and employment strategy. We are seeking to make additional investments to mentoring to support people with a range of disabilities through a range of interventions for the training and employment environment. Indeed, the concept of workplace mentoring is relevant not just to those with an identified disability but to other young people as they work through the system. We have learned very keenly about this from international best practice, and it maybe stands in contrast with how developed the current system is, which Members will be more familiar with.”
“It concluded that, as a minimum, all young people in training should have a named individual in the workplace who is responsible for their development. <BR /> <BR />The review consultation recently concluded, and the new strategy for youth training is expected to be finalised in the coming weeks. Following that, it is intended that elements of the proposals, including workplace mentoring, will be piloted.”
“My Department recently completed a review of youth training in Northern Ireland for 16- to 24-year-olds. That comprehensive review included an in-depth examination of international best practice in youth training, including the provision of mentoring. The research indicated that one-to-one support for young people while they are in the workplace is vital, with dual mentoring in work and training identified as a key ingredient in successful vocational education and training schemes. <BR /> <BR />Based on the international best practice that was identified, the review of youth training consequently and duly proposed that the provision of a workplace mentor should be a key component of the proposed new youth training offer so that young people can be assisted to complete their training and to progress into higher-level options.”
“I stress again that we have a bigger pot of the European social fund available, and it has been distributed in a fair and impartial way. As part of that process, some organisations will be perceived as winning while others will be perceived as losing. That is part and parcel of an open and competitive process. <BR /> <BR />This is about ensuring that we are funding the best projects that are available to us and that meet the objectives that are set out in the operational programme. Indeed, the Executive as a whole agreed that. It is there to ensure that we are doing the best with the money that is available to us so that we can create the biggest impact for the people of Northern Ireland, especially the most disadvantaged.”
“Again, I wish that the Member would clarify where she feels that sectors have lost out. Certainly, we can all think of organisations that may have lost out, but a number of projects across all the sectors that the Member referred to were awarded funding in the announcement that was made towards the end of March. <BR /> <BR />The community and voluntary sector in Northern Ireland is going through a difficult time. Indeed, the Member's own Minister has scythed his way through the community and voluntary sector bodies that support the environment in Northern Ireland. I have taken the approach of seeking to work very closely with the community and voluntary sector. We have made it clear that we value its contribution.”
“Again we have this theme of seeking to undermine the qualifications of those conducting the assessments. These people are all experienced individuals in the public sector. There is a rigour to this process, and when the Member asks about training, there seems to be an insinuation that the people doing this are not fit for the job. Let me again stress to the House that this process has been handled by people who are qualified for the tasks asked of them and that they have conducted the tasks that they have been asked to do in a fair and impartial way.”
“<BR /> <BR />By the same token, a greater number of jobs will be created in the overall package. It is worth reminding Members that the European social fund (ESF) package for Northern Ireland is significantly greater than in the previous round, between 2007 and 2013. We are able to do more overall in Northern Ireland, but the allocation of the funds will be different from the pattern under the previous round because we are considering a fresh round of applications.”
“I am not quite sure in what context the Member is using the term "debacle". It would be useful, if Members are casually going to throw out such terms, to explain what they mean. However, let me be very clear: this is an open, competitive process for funding; no organisation was guaranteed funding as part of this process. Those organisations that had funding under the previous rounds were not guaranteed a continuation of funding; fresh applications were being made. Every organisation had its application assessed on its merits, and a rank order developed in that regard. As part of that process, some organisations will gain and some will lose. Sadly, there will be occasions where jobs are lost if organisations feel that that is the only path open to them.”
“As previously advised, the programme was heavily oversubscribed in terms of the number of applications received and the funding available: 134 applications were originally received, and the total value of those applications exceeded the budget available. Sixty-five projects, worth £102 million, were offered funding from the fund over the three-year period from 1 April 2015 to 31 March 2018. Over the initial three years of funding, the projects will assist over 42,000 individuals to fulfil their potential by providing them with better skills and better job prospects to take steps into employment. Additionally, the programme will provide assistance to over 2,300 families.”
“The panel upheld appeals for three applications, which have now been assessed by the assessment panel. All applications that progressed to phase 2 have now been assessed by assessment panels, and all applicants were notified of the panels’ decisions on 26 March. Those applicants who have been unsuccessful were afforded an opportunity to receive details on the outcome of their application. In addition, those applicants were afforded an opportunity for appeal. An initial date for appeals was amended to 10 April, due to a number of applicants seeking an extension and to the Easter holidays. Twenty-seven appeals were received by the closing date, and those will be reviewed by an appeals panel. <BR /> <BR />Successful applicants have been offered funding from 1 April 2015.”
“My Department recently invited applications for funding to the Northern Ireland European social fund programme 2014-2020. Members will be familiar with the background to the issues regarding the programme. Phase 1 of the assessment has been completed, and applicants have been notified of the outcome. <BR /> <BR />A total of 15 appeals from phase 1 have been heard by an appeals panel and the outcomes notified to applicants.”
“Other companies may, for other reasons, wish to de-invest from Northern Ireland and locate elsewhere. At the same time, we will bring in more companies to Northern Ireland under the lower rate and see more of our existing companies grow than we will see companies — companies that the lower rate will not directly benefit or for whom there are other factors regarding the decisions that they make — leave.”
“For example, we are seeing the Republic of Ireland sticking by its lower level of corporation tax through some very deep and challenging financial and economic times over the past seven or eight years. We should take very strong lessons from that. We should also be very clear that all the business organisations in Northern Ireland are very clear in their support for that type of intervention, and we should listen very strongly to those voices. <BR /> <BR />The final thing that I will say is that it is important that we also recognise that a lower level of corporation tax will not work in an exactly uniform way across all types of business. For example, there are companies here at present that perhaps do not have major profit centres. As such, a lower level will not have huge relevance for them.”
“I will make a number of points. A lower level of corporation tax is going to be a major financial commitment for the Executive. I believe that it will be of benefit and can create jobs and more wealth, which will benefit our society as a whole. Of course, that is by no means certain, and that is why it is so important that we do not try to do this in a vacuum and that we continue to invest in other economic drivers. I say to the Member that, if we seek to fund a lower level of corporation tax by continuing along the current path of cuts to economic drivers, including our colleges and universities, the lower level of corporation tax will be counterproductive and not produce the results that we are expecting. <BR /> <BR />If we do it properly, it will be successful.”
“I very much welcome the move to form a new Department for the Economy. That is not to diminish the work that has been done by my Department or, indeed, the work of my colleague the Minister of Enterprise, Trade and Investment and that of Invest Northern Ireland, as separate entities. All have worked very closely together. Indeed, the leadership in all those organisations has worked very closely together as well. No doubt, there are some inefficiencies from having separate and distinct bodies. Bringing all the economic policy levers and delivery mechanisms under one roof is the logical thing to do, so I very much welcome the creation of a brand new Department that will be greater than the sum of its individual parts.”
“They will make their decisions based on other sound economic rationale. <BR /> <BR />Yes, we can do what we can to encourage that to happen, but it is important that Members are also realistic and understand that we are not here to direct where investment happens. Let us get it into Northern Ireland and make it work for the benefit of everyone.”
“First, I put on record my appreciation to the Member and his Committee for the work that they are doing through their inquiry into what is necessary in terms of the supporting drivers. I have no doubt that they will be looking to consider the distribution of job growth. It is important to stress that a lower rate will stand to benefit the economy of Northern Ireland as a whole, with the proviso that we invest further in the right supporting mechanisms. Although it is right that we look to the distribution of jobs, it is also important that we encourage labour mobility in what is still a reasonably small and compact region. We can encourage jobs to go to different parts of Northern Ireland, but, equally, we need to be realistic and understand that we cannot seek to over-micromanage decisions that companies are making.”
“We have to make further investments in skills, and it is important that the full House understands that, if we are to go down the route of a lower level of corporation tax, it cannot be successful in a vacuum and we have to invest in skills. A standstill in what we are doing is not good enough. At the moment, we are de-investing from a lot of our skills drivers, so we are taking the wrong action if we are supposed to be planning for something that should give the economy here a major boost.”
“I do not think that the actions that we need to take will be that much different in the context of whether we are talking about a 12·5% rate or a lower rate. While it is not my individual responsibility as a Minister to set the rate, my view, as part of a collective Executive, is that it would be foolish for us to have a race to the bottom by trying to undercut the rate in the Republic of Ireland, because it would simply move to match us. There are advantages in having a common regime on the island so that we can both compete based upon our other strong attributes in our respective jurisdictions. <BR /> <BR />The Member stressed the importance of skills.”
“<BR /> <BR />The Department is already working to address those issues, and they are central themes in the overarching skills strategy. However, although the Department is already on the right path, the research shows that it will need to go further to address the quantum of skills required in that type of scenario. Therefore, my Department has developed a draft action plan to prepare the way and to put in place robust measures so that we can move swiftly in the event that a rate is determined.”
“Recent estimates by the Ulster University's economic policy centre show that a reduction to 12·5% from April 2017 could lead to an increase in employment of 38,000 jobs by 2033 compared with today. To prepare for such a lower corporation tax environment, I commissioned research that considered the impact that a lower rate would have on the demand for skills, labour and innovation capacity. That research set out the importance of developing our skills base and the employability of our people in a lower corporation tax environment and highlighted in particular the importance of strong skills in STEM, management and leadership, and literacy, numeracy and employability if we are to capture the full benefits of a lower rate.”
“I have no doubt that Members will encourage their party colleagues who are on the Executive to ensure that that is agreed by the Executive as quickly as possible so that we can begin its implementation. <BR /> <BR />I am happy to endorse the motion, which is a reflection of a very serious debate. It is about equality of opportunity for everyone in society, including women, but also about ensuring that we maximise the full economic potential of the region. If we do not encourage the fullest participation in what are the most high-profile, high-growth areas of the economy, we are in danger of selling ourselves short.”
“<BR /> <BR />I also want to respond to some comments that have been made by Members. It was, I think, Sandra Overend who asked about economic inactivity. Although that does not necessarily fall under the label of STEM, there will be a STEM element to some of the work that is being conducted in that area, and there is clearly an issue around economic inactivity where participation levels are lower for many women, often because of child and family commitments. Our economic participation level for females is significantly lower than that for males, which points to some of the broader challenges that we have to address. The strategy is currently before the Executive, and I hope that it can be cleared in the coming days.”
“<BR /> <BR />I assure Members in closing that, within government, we are very much seized of this issue. In my Department, we have a gender action plan, which is being refreshed and renewed, and which we are committed to publicising in the near future. That will, of course, be a living, breathing document, which will evolve in line with new challenges and new opportunities to address these issues. Obviously, a lot of the changes that are required to culture and working practices lie beyond the remit of my Department, but the Executive are themselves committed to gender equality. There is a strategy in place, which will very shortly require to be renewed, and I am sure that the comments made by Members today will be reflected on when it comes to drafting that revised strategy over the coming years.”
“Much more must be done in that regard. <BR /> <BR />A key challenge is to encourage employers to engage on this important issue and to offer schemes such as flexible working and childcare provision to help females to thrive in the STEM sector. With the agreement of the Assembly, I have already introduced the new right to shared parental leave and pay, which has a clear gender equality focus. By extending greater flexibility and choice to working parents and challenging assumptions that women will necessarily stay off work for a prolonged period following the birth or adoption of a child, I think that we have taken a small but important step forward. Other steps relating to the culture of business and other forms of employment will be required, and government has a key role in encouraging and facilitating challenge and change.”
“I am, however, aware that there is more work to be done and that many of the actions will take time to deliver results. It is vital that we continue to do all that we can to combat and to address negative stereotypes that exist around STEM subjects, in particular among females. <BR /> <BR />Much of this debate and the actions highlighted have focused on entry into STEM. I want to stress that, while this debate focuses on the issue of gender and STEM, it is nonetheless important to acknowledge that there are broader challenges to better participation by women in the workforce, including retention and progression. With women entering the labour market in ever greater numbers, we still have to ask why women continue to face barriers to remaining in the workforce and to progressing in line with their male counterparts.”
“Other female-specific opportunities include the computer club for girls, which has 20 industry-sponsored schools enrolled on the programme this academic year and ongoing work to design and deliver women-only programmes. <BR /> <BR />In July last year, I also arranged for eight of our further education students to attend a STEM summer camp at the prestigious Worcester Polytechnic Institute in Massachusetts. Four of them studied the women's leadership strand of the programme. Feedback was extremely positive, and it is hoped that we can send a further cohort in 2015. <BR /> <BR />Ensuring that our young people, specifically women, make the right choices to maximise their potential is critical not only to their own success but to our economic prosperity.”
“<BR /> <BR />I have also committed significant funding to promote the ICT sector as a career choice to all our young people. ICT has traditionally been perceived as male-dominated, and an important aspect of the Bring IT On programme, which I support, is addressing the gender imbalance. In addition to the wide range of activities available to both genders, the programme provides an opportunity for young women to hear directly from inspirational women in ICT. Feedback has been positive, with a large proportion of the young women attending enthused and considering an IT-related degree or career as a result of the intervention.”
“For example, I am providing funding of £71,000 through the skills collaboration fund for the Women in STEM — Upskill to Compete project delivered by industry partners, Semta NI, which is the sector skills council for science, engineering and manufacturing technologies in Northern Ireland. The aim of the project is to address the gender imbalance that exists in the advanced manufacturing and engineering services sector. The project supports SMEs and larger companies to develop female employees in STEM roles, to promote STEM to schoolgirls and to establish a women's network to mentor and support girls and women who are progressing on a STEM careers' pathway. I am delighted to endorse and support the project, and I hope that it will encourage and inspire more females to study STEM subjects and to pursue careers in STEM.”
“<BR /> <BR />Of course, maintaining this momentum will become ever more difficult as a result of the budget cuts being faced by my Department and others. However, given the importance of the STEM and skills agenda to the future economic prosperity of Northern Ireland, both universities are working to protect undergraduate STEM places from any cuts in the incoming year. <BR /> <BR />My Department continues to take forward opportunities to encourage more females to study and pursue careers in STEM. Gender considerations are also central to action plans that have been developed for the engineering and advanced manufacturing sector, and the ICT sector.”