Simon Hamilton
Strangford · Democratic Unionist Party · Northern Ireland
“I have emphasised to the Member and the House before, that, whilst I accept that those are not good enough — that is why we have been developing the plan — there are alternative technologies in place that can present opportunities for those who just cannot get acceptable speeds.”
“I thank the Member for his intervention. There are some initiatives that I believe will help and act as a driver to improve broadband access. One such intervention is the broadband universal service obligation (USO), which is being taken forward by Her Majesty's Government.”
“I thank the Member for his question. However, he is conflating two issues. I wrote to his party leader, and indeed to all Assembly party leaders, before making the announcement that I did last week about wanting to publish the details of the businesses in receipt of the non-domestic RHI scheme. It was my intention to do that tomorrow.”
“<BR /> <BR />The Chancellor, in his autumn statement, made some more funding available for telecommunications, and my Department is studying that and seeking to avail itself of that to the fullest possible extent.”
“In addition, my Department is managing a contract for the delivery of the superfast rollout programme, which, by 31 December, will provide access to superfast broadband with speeds of at least 24 megabits per second to a further 38,000 premises, both business and residential, across Northern Ireland, including in the Newry and Armagh cons…”
“I signalled the intention to do this a few weeks ago. The Member and the House will know that inspections of all installations would have taken place over the 20-year lifetime of the RHI scheme.”
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“There are several bids for cruise ships behind me. <BR /> <BR />Fifty-nine cruise ships docked in Belfast last year, bringing in over 116,000 visitors, including crew. That figure, because of the increase in the number of ships, is estimated to go up to 143,000 guests and crew. Last year's 59 ships and 116,000 people brought £6 million of visitor spend into Northern Ireland, so we would expect to exceed that this year with a greater number of cruise ships coming into Belfast. <BR /> <BR />We did not think that this was imaginable at one time. We should warmly welcome them.”
“This year, however, it is expected that 77 cruise ships will dock in Belfast, and there is a new terminal in the harbour estate for them. There has been a huge increase in the number — effectively from zero to 77 — in very short order. That is a vote of confidence in Northern Ireland generally, and in our overall tourism product. If we did not have things such as the Giant's Causeway, in the Member's constituency, Titanic Belfast or Mount Stewart in my constituency, for example, people would not necessarily want to stop here and it would not be a destination on the itinerary of all these cruise liners. <BR /> <BR />It shows the huge progress made in Northern Ireland as a whole but also the particular development of our tourism sector.”
“The growth in the number of cruise ships coming into Northern Ireland is a very recent phenomenon. Ten years ago, the very idea that cruise ships would come into Belfast would have been something that people laughed at.”
“Because of its location, Sprucefield, much like the Maze site not that far away, has huge investment opportunities. The benefit derived from investment in either site would not just go to the local area and the city of Lisburn but further afield and probably the whole of the region. The development of that site is probably more of a planning issue that resides now with the Department for Infrastructure in terms of strategic planning policy for Northern Ireland. I will leave it to that Minister to take that forward, but there are huge opportunities across Northern Ireland. We are on the cusp of what could be exciting economic times for Northern Ireland. There will be huge opportunities over the next number of years, but we cannot do things that lock down sites and make them unavailable for development in the future.”
“There have been occasions when I think we have got the reputation, generally and usually through the planning system, of not being receptive to certain types of new investment. I know that people will take a different view on it, but I am very supportive of John Lewis coming to Northern Ireland. I hope that the opportunity has not been lost and we can secure that investment to Sprucefield or, indeed, wherever in Northern Ireland they wish to invest.”
“I thank the Member for his welcome. I am sure that this will be the one and only Question Time in which I am welcomed to the House. I congratulate the Member on his election to the Assembly. <BR /> <BR />The issue of John Lewis coming to Northern Ireland is long and protracted. It is one that we have all observed, some from afar, representing other constituencies, and some very intimately involved, particularly those in the Lagan Valley area. There was an opportunity to bring John Lewis to Northern Ireland, not just to have a store at Sprucefield but to bring the centre of operations for, I think it was intended, the whole of Ireland. Unfortunately, we have missed that opportunity up to now. I know that others take a differing view, and I look at you nervously, Mr Speaker, as you are a representative for Belfast.”
“In Northern Ireland, 41% of staff in financial services are educated to degree level, and that compares with just 36% in the whole of the UK and 21% in the Republic of Ireland. Seventy per cent of IT and telecoms professionals in Northern Ireland hold a higher-level education qualification, compared with a UK average of 62%. In spite of the challenges that the sector has faced and will continue to face, Northern Ireland has a good record of producing highly qualified graduates with the skills that businesses in Northern Ireland need.”
“All the indications and the analysis that we are doing show that there are five sectors that are displaying and will continue to display employment growth opportunities in Northern Ireland. They are ICT, professional scientific and technical skills, manufacturing, administrative jobs, and hospitality and retail jobs. In spite of the narrative that has developed around the pressures and challenges on the sector, its financing and making sure it is on a sustainable footing, we have a very strong skills base and a record of producing graduates whom businesses need. In ICT, for example, which is one of those growth areas for employment, we are producing highly skilled graduates.”
“I want to study the responses to that consultation and the options in it, and I want to do that alongside discussions I intend to have with the vice chancellors of our two universities. I have had passing conversations with at least one of them, who mentioned that he had some ideas and proposals that he wanted to put to me. I look forward to receiving those, and I will obviously give them careful consideration. It is incredibly important that we get the university sector on to a sustainable financial footing so that it can continue to make a contribution to our economy and produce graduates with the skills we require not just now but in the future to ensure that our economy grows in the way we want it to.”
“I thank the Member for her question and her comments. I also welcome her; I think this is my first opportunity to welcome her to the Assembly. <BR /> <BR />The responsibility for this resides with me, not the Minister of Education. We obviously received good news today with the conclusion of the June monitoring round, which has seen £20 million of additional expenditure to my Department, much of which will go to higher and further education to deal with some of the challenges and pressures that the Member has highlighted. I want to see the financing of the sector placed on a long-term and sustainable footing. I want to consider all the potential options on that. <BR /> <BR />The previous Department for Employment and Learning conducted a consultation on this that set out a range of options.”
“<BR /> <BR />I recognise that Ulster University has an aim of increasing undergraduate numbers at Magee, and I am absolutely certain that doing so would have a positive impact on the economy of that area, both through a direct impact on the economy and the wider and more positive impact it would have in making it a more attractive place to invest. You would expect me to consider all those points in the context of the budget available to me and, more widely, the Executive and of the implications for the wider policy on student numbers. <BR /> <BR />As I said, the outline business case has been received by the Department, and I will give it careful consideration. As the Member would expect me to, I will want to do that in concert with dialogue with Executive colleagues.”
“I recognise the importance that representatives of the Foyle constituency and the north-west in general have placed on the expansion of Ulster University at its Magee campus. As the Member will know, my Department has recently received an outline business case that was submitted to the Department with support from a wide range of stakeholders from the north-west. That will be considered on its merits, as you would expect, and in the context of wider policy implications, particularly the sustainable financing of the sector.”
“I assure the Member that I and my Executive colleagues will be examining a variety of options to ensure that our universities remain well positioned to deliver the skills required by the current and future Northern Ireland economy.”
“The knowledge and skills of higher education graduates contribute to the creation of a more flexible and adaptable workforce, which is key to enhancing our region’s economic competitiveness. If we are to attract sufficient investment for our economy to grow and for high-quality jobs to be created, we must in turn invest in the right high-level skills to attract that investment. The higher education sector is a key enabler in establishing a competitive skills system for investors to see Northern Ireland as an attractive place to set up and do business.”
“Universities and colleges are a core part of national and regional economic infrastructure, generating employment and output, attracting export earnings and contributing to economic growth. They are also part of local, regional, national and international networks influencing the political, social, cultural and economic climate. At a time of global economic difficulty, Governments across the world are looking to their universities to provide ways to support the national and regional economies, through development of new ideas, products and services from university research, as well as through continuing to raise the education levels of citizens and our capacity to innovate and adapt. <BR /> <BR />The economic importance of higher education institutions is particularly visible in our regional economy.”
“With an expanding and growing European Union heading in a direction which brings in more countries which have greater need than Northern Ireland, there is every prospect that the money available to Northern Ireland, and to the United Kingdom as a whole, will diminish over time.”
“<BR /> <BR />The Member asks me a question as to how we might make up that difference. The Member knows full well that, whatever disputes there might be about the number, the UK is a net contributor to the European Union. I cannot imagine any UK Government, whatever its complexion, that will not want to spend money on research and development or in encouraging universities, colleges and businesses in Northern Ireland, and the rest of the United Kingdom, to invest in R&D. <BR /> <BR />The Member also talks about an uncertainty as to what any UK Government might do, but we also have the uncertainty about what any European Commission might do.”
“I thank the Member for his question and his good wishes — as well as the innovative Member sitting two rows behind him in introducing this subject. I will not stand here and deny to the Member, or the House, that Northern Ireland has been a beneficiary in terms of R&D funding and innovation funding coming from the European Union. Horizon 2020 is obviously the big funding stream at this moment in time. The Member will know, from his previous role, that Northern Ireland has set ambitious targets to increase our drawdown from Horizon 2020. Northern Ireland researchers have secured just over €28·6 million, and there has been an additional €23·5 million for a Queen's University project about innovation within medicine. In total, just over €50 million has been drawn down between January 2014 to November 2015.”
“There are other examples of investments of small and sometimes modest amounts of money which unlock investment by the firm itself, which in turn stabilises the business and allows it to grow and take on more people. I know that is something that is very dear to the heart of the Member, and indeed other Members who are representing the North Antrim constituency.”
“I am very pleased that in the last financial year some £1 million was invested through Invest Northern Ireland's grant projects in the North Antrim constituency, and that was supporting a total investment of just over £4 million pounds. An example he mentioned is McAuley Engineering — a firm I visited with the Member some years ago in a previous role. It is an exceptional firm and goes from strength to strength. <BR /> <BR />Another great firm that we are all very proud of, no matter what part of Northern Ireland we come from or represent, is Wrightbus. It has received £5 million of assistance, which unlocked £26 million of overall investment over the last five years. That has allowed it to remain a market leader by investing in innovation, and to continue with exports to Hong Kong, Singapore, India and elsewhere.”
“I thank the Member for his question and for his best wishes. <BR /> <BR />The Member's constituency has had a rougher and tougher time than probably any other constituency over the last six, nine or 12 months in terms of the impact on jobs, given the decision of the two huge firms, JTI and Michelin, to close their operations. Of course, as a Department, we will do everything that we possibly can to try to soften that blow for the workers in both firms. I hope that we will also be able to continue to work with businesses in that area so that they can grow and expand and take on more employment. <BR /> <BR />One way in which we can do that, as the Member said, is to increase investment in research and development.”
“In Fermanagh, Teleperformance in Enniskillen has committed to creating 800 jobs. I can give the Member the assurance through the new Programme for Government as well, which has an outcome right at the head that says that we prosper through a strong, competitive, regionally balanced economy. We want to create wealth, develop and improve our economy, and create jobs for the whole of Northern Ireland, but we want that to be regionally balanced and spread right across Northern Ireland so that everybody in Northern Ireland can prosper.”
“Of course, everybody will fight very hard for their constituency. <BR /> <BR />There are, however, some interesting figures that show that, from 2011-12 to 2015-16, investment in the east of the Province was 282 jobs per 10,000 head of population but that, in the west of the Province, it was 301 jobs per 10,000 of the population. Obviously, more people live east of the Bann and in the east of the Province, but, if you look at it on a population basis, you will see that job creation through Invest NI assistance has been greater in the west of the Province. I am sure that the Member will be familiar with some of those examples in his constituency. Dunbia recently made an announcement on the creation of 209 new jobs in Dungannon, and Westland Horticulture will bring 70 new jobs to Dungannon, with an investment of £9·6 million.”
“I thank the Member for his question and welcome him to the Assembly. I thank him for his kind comments. <BR /> <BR />I am tempted to say that the First Minister will ensure that I do my best to bring investment to the Member's constituency. That is stimulus and motivation enough for me to do my job in that respect. I had a discussion on this issue with one of the Member's party colleagues last week during a debate on manufacturing in Northern Ireland, and there is a perception that there is an imbalance in where investment and job creation goes in Northern Ireland. I can understand that. A lot of Members who represent constituencies that are not even west of the Bann but are in and around the greater Belfast area could perhaps point at elements that suggest that they do not get as much investment as they would like.”
“There is also a small business research initiative, which was utilised by my Department initially on a small-scale project on tourism apps but has more recently been used, in concert with the Department of Agriculture and Rural Development as it was — it is now DAERA — on a project involving poultry litter. I hope to be in a position to make a positive announcement on that in the not too distant future. There are a range of measures in place to try to encourage businesses, whether they are indigenous firms or external investors and whether they are small-, medium- or large-scale businesses, to get into R&D and to continue to try to use it as a way to improve our economy.”
“As I indicated, there are some measures in place already through Invest Northern Ireland, colleges or universities to try to work with firms. It is a process of working with them to encourage them, and, in many cases, we are trying to get firms that have tentatively, or perhaps never before, been involved in research and development to do that for the first time in the hope that they will continue to do it. <BR /> <BR />There are a range of schemes in place. As I mentioned, there is an Invest NI grant scheme, R&D clinics and various funds in higher and further education. There are also national schemes such as an HMRC tax credit scheme and the patent box scheme, which reduces corporation tax to 10% for patents that are registered in the UK.”
“It is incredibly important to have skills to attract inward investment into Northern Ireland and to help our indigenous firms to expand and realise the opportunities out there in the global marketplace. Developing our skills is a key component of our new draft Programme for Government framework. One of the indicators, as I am sure the Member will know, is to improve the skills profile of our population. A range of strategies is in place — I will not bore the Member or the House with those — to ensure that we have the right skills in place, whether that is delivered through higher education, further education, apprenticeships or youth training.”
“R&D is a risk, but it is a necessary one to drive sustained company growth.”
“<BR /> <BR />In the last year alone, Invest NI has supported businesses, the majority of which are local companies, small and large, to invest £70 million in research and development. That has created a strong foundation for us to drive forward our ambitious plans for the economy. My Department, through its delivery bodies and by working in partnership with the private sector, will continue to focus on getting more companies engaged in R&D. A range of interventions is already in place to deliver that, whether it is the Invest NI monthly R&D clinics, the financial assistance from the grant for R&D programme, the Higher Education Innovation Fund (HEIF) run by universities or the employer support programme run by our colleges. The challenge that we face is supporting companies to take the risk to invest in R&D.”
“Thank you, Mr Speaker, for your comments. <BR /> <BR />Business investment in R&D is critical to economic growth. It leads to new, innovative products and processes and increases in productivity and can drive sustainable export growth. To deliver our vision of a more dynamic and competitive economy, Northern Ireland needs many more companies engaging in R&D and innovation. In recent years, through the excellent work of Invest NI, our universities and our colleges, we have made positive progress in this area. Their support has helped to create the conditions in which our companies now invest more than £400 million annually in research and development — that is up 25% since 2009. Most encouragingly, we now have more firms than ever before investing in R&D.”
“In the public sector, many staff, particularly in our NHS, are immigrants — I had the privilege of being the Minister of Health for the last year — and we would not be able to cope were it not for those people coming into Northern Ireland to provide much-needed services. Similarly, many staff come from other parts of the world to work in agrifood businesses — I represent a constituency that has many such businesses — and those businesses would not be able to survive were it not for that support. I absolutely understand and take on board the Member's point. If, indeed, there were unrestrained immigration into the United Kingdom, it would have a depressive effect, as the Member indicates, on household incomes and the economy generally.”
“I commend the Member on his innovation in introducing the EU referendum into a question on gross disposable household income. It is that sort of innovation that I would like many of our companies in Northern Ireland to display. If they did, we would have a fantastic economy. <BR /> <BR />The Member raises a good, pertinent point. There are clearly issues, perhaps less so in Northern Ireland and more so in other parts of the United Kingdom, with immigration and the effect that it has on the local, regional and, indeed, in some cases, national economy. I think that we in Northern Ireland have benefited from immigration as well.”
“His party ran in the recent election, and, at least, to be fair, it was honest in running on a platform of wanting to see water charges introduced and rates increased and wanting to do away with the proud record that we have of having the lowest household taxes in the whole of the United Kingdom. As Mr Nesbitt's question elicited, gross disposable household income in Northern Ireland is lower than we would like it to be, but it would be far worse if the Alliance Party had its way and people in Northern Ireland were paying £400 or £500 water bills and radically increased rates bills as well.”
“Everybody in the House recognises that there are long-standing, deep-seated structural issues with childcare in Northern Ireland and that it is not as good as we want it to be or does not compare favourably with provision, for example, in Great Britain. I want to support seeing more free childcare places provided to people across Northern Ireland, but I do not wish to intrude on the departmental responsibilities of other Ministers, and I think that that is a responsibility for the Minister of Education, if I am right. I will leave it to the good offices of my friend and colleague Mr Weir to advance that in a sustainable way. <BR /> <BR />It is brave of the Member to stand up in the House and lecture me and my party about costs to households and taxation in Northern Ireland.”
“Some, in fact, ran during the recent election on a platform calling for increased rates and the introduction of water charges and so on. Maintaining a policy of taking pride in having the lowest household taxes in the UK and withstanding the pressure inside and outside the Assembly to increase local taxes has helped to ensure that gross disposable household income in Northern Ireland is not worse than it is.”
“We have the lowest household taxes in the whole of the United Kingdom: the average household bill in Northern Ireland in 2015-16 was £842. That compared favourably with Scotland, where it was £1,300, England, where it was £1,400, and Wales, where it was over £1,500. When you total that up over the five years of the last Executive, the average householder in Northern Ireland saved £2,500. Add to that the policies that the Executive have pursued such as free transport for the over-60s and keeping the lone pensioner allowance in place, many of which are policies that some in the House, never mind people outside the House, told us to that we needed to get rid of because they were too expensive and we did not need them any more.”
“I share the Member's pride in the fact that we are a low-tax party and have rightly earned that reputation over the years in local government and in the Assembly. Taxation is a factor in disposable household incomes. There are others, including the size of a household, and, in Northern Ireland, households tend to have more children in them. There are also factors around inflation, as I mentioned, and earnings, but taxation is a factor. There is little that we can do to affect income tax, although the changes that Her Majesty's Government have brought in to increase the personal allowance will disproportionately benefit people in Northern Ireland because of their lower incomes. <BR /> <BR />As an Assembly, we have a proud record of keeping household taxes down.”
“Targeting our work with Invest Northern Ireland on more and better jobs that have higher wages will also increase the gross disposable household income for people across Northern Ireland.”
“Just out of interest, I will say that, between 2011 and 2016, of the jobs that the Executive were able to attract into Northern Ireland through Invest Northern Ireland, 64% of those that were created by locally owned companies were above the private sector median wage and 72% of those that were created by external investors into Northern Ireland were over the private sector median wage.”
“I want to make sure that, in trying to create a better, stronger economy for Northern Ireland, that entails bringing in not just more jobs but better jobs. By "better jobs", I mean jobs that pay more money to people in Northern Ireland. It is one area in which one of the factors that we can influence, or at least try to influence, as a Government is to try to attract more and better jobs. <BR /> <BR />Yes, we have managed to bring in 40,000 jobs over the past five years. I want to see that continue, grow and do better over this Assembly term.”
“I thank the Member for his congratulations. I do accept that the level of gross disposable household income is disappointing. The latest figures for 2014 show that £14,645 per head is the average figure in Northern Ireland, which is about 81·5% of the UK average. That is not good enough. I could stand here and say to the Member and the House that it is something that has historically been the case and that Northern Ireland has always had far lower earnings on average than the rest of the United Kingdom, and just accept that as something that we cannot really do much about, given that we have done little to erode that gap over the past 10, 20, 30 or more years, but I do not want to do that.”
“<BR /> <BR />The most effective way of increasing household income is to have more people in better jobs. Since 2012, we have seen 40,000 new jobs created, with 26,000 fewer people claiming unemployment than in February 2013. We know from research that businesses that are innovative and invest more in R&D are more likely to be successful in global markets, employ more people and pay higher salaries — more and better jobs. Continuing with that policy will make a massive contribution to increasing local household incomes.”
“That represents the largest annual percentage increase in earnings since 2004 and the first increase in inflation-adjusted earnings since 2009. The median gross weekly earnings for full-time employees in Northern Ireland is now 92% of the UK level and is at its highest since the survey began in 1997. <BR /> <BR />High inflation has the effect of eroding earnings growth and therefore reducing any possible increase in gross disposable household income. At the height of the financial crisis in 2008, inflation was running at over 5%. However, inflation has been at historically low levels for some time now. In April 2016, inflation, as measured by the consumer price index (CPI), was 0·3%. With wages growing faster than inflation, that will result in higher gross disposable household income.”
“My Department is committed, through delivery of the new outcomes-based Programme for Government and the refocused economic strategy, to increasing the competitiveness of the Northern Ireland economy and to growing employment and prosperity for all. In doing so, it will be important to ensure that growth goes hand in hand with improvements in people's living standards. <BR /> <BR />It is a matter of record that earnings in Northern Ireland have historically been lower relative to the rest of the United Kingdom. That partially explains why Northern Ireland's level of gross disposable household income per head has continually been lower than in other parts of the UK. On a more positive note, in April 2015, median gross weekly earnings for full-time employees in Northern Ireland was £485, up 5·4% from £460 in 2014.”
“<BR /> <BR />Tourism NI is also working with local tourism businesses in East Antrim and along the Causeway coastal route through a mentoring programme to help them collaborate and collectively maximise the opportunities on offer from Tourism Ireland and Tourism NI in out-of-state markets. I encourage local businesses to work closely with our two tourism bodies and the local council to maximise the tourism potential for their area. <BR /> <BR />In closing, I again congratulate the Member on securing the debate. He raised some specific points about the area, which I will respond to in due course in writing. I congratulate him for highlighting the real tourism assets that the East Antrim constituency has to offer.”
“Tourism NI recognises the significant potential of the east Antrim area and is co-funding the development of a local tourism strategy in partnership with Mid and East Antrim Borough Council. Tourism Ireland also works closely with major ferry operators, and a cooperative marketing campaign in partnership with P&O Ferries was launched in April to promote travel to Northern Ireland this summer via the Cairnryan to Larne route. The campaign included radio, newspaper, digital and social media ads, targeting potential visitors from Scotland and the north of England.”
“One that I recalled as Members were talking was the Carrick Sevens in Carrickfergus, which is one of many successful events in that area but is a particular one that attracts hundreds of visitors from all over Ireland and beyond annually. It is now a firm fixture in the calendar. There are many reasons for East Antrim to be proud of its tourism assets and potential.”
“It will complement the many tourist attractions along the Causeway coastal route, encouraging visitors to stay longer in Northern Ireland and spend more in our economy. <BR /> <BR />The aforementioned Carrickfergus Castle is another iconic attraction in the east Antrim area. With continued product development and marketing, it has the potential to be a strong attraction for out-of-state visitors. The east Antrim area also hosts a number of significant events, many of which were mentioned during the debate. Tourism NI provides support for the Dalriada Festival, which had a wonderful food offering this year. Lots of other smaller events were mentioned by contributors.”
“I am pleased to hear that Northern Ireland's Year of Food and Drink is also being widely promoted, with Jamie Oliver's hugely popular Food Tube channel filming in Glenarm. The Seaview Hall in Glenarm is another tourism heritage project providing a unique craft visitor attraction. I am pleased to note that Tourism NI provided financial assistance, alongside the local council and other funders, to renovate and regenerate the derelict old school hall. <BR /> <BR />Investment is also being made in new tourism product for the area. A £3 million project is under way to transform the existing Whitehead railway site into a major visitor attraction. This investment will deliver a living engineering museum that will provide an educational and interactive experience. I look forward to the official launch, which is planned for early autumn.”
“<BR /> <BR />I recently took the opportunity to help Tourism Ireland highlight its third major 'Game of Thrones' campaign to promote Northern Ireland as a filming location for the hit TV programme. The campaign is timed to coincide with the sixth season of the series and builds on the success of last year's social media campaign, which reached up to 100 million potential visitors. Forgive me if I get this wrong: is "Shillanavogy" correct? I did not want to sound like a direct rule Minister when reading that out. Shillanavogy valley, Cairncastle and the Cushendun caves, which are all 'Game of Thrones' filming locations, are highlighted in the campaign. <BR /> <BR />I am delighted that businesses in the east Antrim area have embraced WorldHost. Glenarm, in particular, was awarded WorldHost Village status in March 2016.”