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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“What I am attempting to do, in what is a very complex and often very technical area, is to take cognisance of all the issues, whether around renewables, manufacturing and affordability, or security of supply, and to come forward with a comprehensive energy policy that will stand Northern Ireland in good stead, not just in the short term but for many years to come.”
“EMAG produced its recommendations earlier this year. I have been carefully considering those recommendations, and I will use them — there are many good recommendations in the EMAG report — to advise me and to help shape future energy policy in Northern Ireland. I am sure that the Member appreciates already from his time on the Economy Committee that the whole issue of energy is very intricate and interlinked, and that taking a decision in respect of one recommendation from EMAG will have consequences elsewhere in the energy system.”
“We will also increase the Invest NI presence, with a particular focus and emphasis on trade, by up to 10 new destinations before the end of next year. We are examining the potential to create new trade, investment and innovation hubs in key markets. There has been and will continue to be a relentless focus on trade as a key driver of growth in our economy.”
“I have introduced a package of enhanced support for accommodation and travel to Great Britain and also for travel to the Republic of Ireland. There have been various market introduction programmes and more in-market trade advisory support. I also recently announced a new international trade plan, which will see the creation of a new trade advisory board, made up of many of Northern Ireland's best and most successful exporters, to advise me and Invest Northern Ireland on the policies that we should be developing to seize more trade opportunities. We will appoint a series of Northern Ireland trade ambassadors with the aim of utilising the power and strength of our diaspora, which is spread right around the world.”
“It is important, as the Member suggests, that we do not just rest on our laurels, sit back and pat ourselves on the back for a job well done. We have to build on the success that we have experienced over the past year in the sense that the last quarterly results show that we were the only UK region to increase exports in that time. It shows that we have the highest increase of any UK region, so that is a really successful performance for a small economy like Northern Ireland's. We must build on that and that is why I have been bringing a focus to exports over the last few months. <BR /> <BR />The Member will know that I introduced a trade accelerator plan, which is particularly focused on first-time exporters and encouraging them to look at markets outside Northern Ireland.”
“As we all know, in a small region like ours, if we want to grow our economy, we have to sell outside our region and sell more to the rest of the United Kingdom and also to the rest of the world. I am really pleased that it is the manufacturing sector and the life sciences sector that have posted a 24% increase in their sales over the last year, and I am also pleased that markets outside Europe are the ones that are driving this growth, with a nearly 30% increase in exports to the United States over the last year. The performance of Northern Ireland exporters has been excellent, and I hope that that continues to be the case.”
“The latest data on exports, as measured by Her Majesty's Revenue and Customs, was released this morning. These are figures for the year ending quarter 3 of this year. Again, it is very good news for Northern Ireland business. Northern Ireland exports are up to £7·4 billion in the last year, and that represents a 6% increase in exports. The significance of the 6% increase is that that is the highest percentage increase in the whole of the United Kingdom. This is another really strong performance by Northern Ireland exporters, and I pay tribute to all the companies that have been working hard over the last year to improve their sales outside Northern Ireland.”
“That will get us to a position where, when all those are onto the grid, we will be able to meet our 40% electricity consumption target by 2020. This is an issue that I am very mindful of and very aware of, and I expect it to be raised later this week when I am with the Northern Ireland Affairs Committee to give evidence as part of its ongoing inquiry into electricity supply in Northern Ireland. It is an issue that has far and wide interest, not least in my office, and I want to make sure that energy is not an inhibiting factor in any way, shape or form to the future growth and competitiveness of our economy.”
“I do not have that information. I would need to speak to NIE and others to make sure that those that are built are all connected. In fact, I was at a business with Mr William Irwin last week that had a turbine erected but was not yet connected. That was all going through the process. There is a process that has to be dealt with. We have to be careful and mindful that there is a lot of demand on the grid and that, with the grid that we currently have, it is difficult to meet all that demand, particularly with renewables, which the Member mentioned. I want to point out to the House, as I have done before, that, at present, around 900 megawatts of electricity is connected to the grid. Offers for approximately 700 more megawatts are already out there, and there is another 200 or so megawatts to be offered.”
“<BR /> <BR />I want investment in our grid, for a host of reasons, particularly because, as I travel around Northern Ireland, I regularly see many businesses that want to expand, but not only is there a sometimes a cost to get on to the grid, it can take a long time for them to do so. I have noticed that particularly on my travels in the west of the Province, so I want to ensure that the lack of cost-efficient and time-efficient access to the grid is not an inhibitor of the growth of companies in Northern Ireland.”
“I have had extensive discussions with not just NIE Networks but other key players in the energy sector about the grid infrastructure in Northern Ireland. I am sure that the Member will appreciate that it is not always viewed like this by some, but our grid is a scarce and precious resource and, as such, needs to be handled carefully. As the Member is aware, there are pressures on the grid and a need for further investment in it. That issue is handled through the regulator and NIE working together on their price determination. I think that they are in the process of doing that, and I look forward to a positive outcome.”
“Sometimes, that is the way in which a region such as ours develops its air connectivity — through another hub airport — which is why I suspect that it will be among the recommendations of the task force.”
“That does not, however, take away from a point that the Member will, I am sure, echo: entering Northern Ireland from other parts of the world is as easy and simple as flying into Dublin. That is why I want, as I have said, to establish an air routes task force in order, first, to identify key routes and then to develop policies and interventions that can attract airlines to those key routes so that Northern Ireland is better served by air connectivity. <BR /> <BR />I welcome last week's announcement that Icelandair is to fly into Belfast City Airport from next week. People might not see Iceland as a big marketplace or a destination that will attract inward tourism, but there are, I think, 16 or 17 entry points into North America via Reykjavik Airport. It is a bit of a hub airport that expands our wider reach.”
“I thank the Member for her question. She will know that this is an issue that I have been very interested in, for a range of reasons, since taking office. I noted recent comments, similar to the question that the Member has just asked, by the chief executive of the International Airport. I agree with those comments on the need for the better promotion of our airports, not just the International Airport but the City of Derry Airport and Belfast City Airport. We all accept, including me, that Dublin is a very different place: it is much bigger; it has a bigger economy than ours; and it has one bigger airport that is better developed and serves a city population of around 1·5 million. As such, it will always have certain advantages over a region such as ours, given our scale and the fact that we have three airports serving a small region.”
“I have had discussions with the chief executive of Tourism Ireland on a casual basis and more formal discussions with the chair of Tourism Ireland. I am due to meet the chief executive of Tourism Ireland at the tail end of this week, and I look forward to a, hopefully, positive discussion on my priorities for tourism and its development in Northern Ireland, and on how we can align the work of Tourism Ireland with what the sector here, including Tourism Northern Ireland, is doing to develop and improve our tourism product.”
“The Department for Infrastructure is engaged with my officials in the development of the draft economic strategy, which, together with the draft investment strategy for Northern Ireland, will set out in more detail the Executive's priority areas for investment in the years ahead. Investment in our infrastructure requires long-term planning and a sustained focus on delivery to meet the anticipated needs of today's generation as well as future generations.”
“The Executive have made and continue to make significant investment in Northern Ireland's infrastructure. As a member of the Executive, I have regular and ongoing discussions with all my ministerial colleagues, including the Minister for Infrastructure. Between 2011 and 2016, there has been £354 million of investment by the former Department of Enterprise, Trade and Investment and the Department for Employment and Learning in capital infrastructure projects. The Minister for Infrastructure and I recognise the importance of targeted investment in our infrastructure as an enabler and driver of economic growth. Physical and digital connectivity is important in supporting our future economic competitiveness and social well-being.”
“Nobody, least of all me, has denied that this is shocking, that there are problems here and that we need to deal with them, but my focus now is on tackling the serious allegations of fraud, developing a plan of action to deal with the financial implications of RHI and, as soon as possible, examining the ways in which we can mitigate and start to reduce the cost of the scheme.”
“It seems that it is squander when it suits the Member. <BR /> <BR />I do not agree at all with the beginning of the Member's question; I was going to say that it was a statement rather than a question. The Member is long enough in the tooth and, if reports are right, may even be departing this place very soon, so he will know that policy experts — so-called policy experts, perhaps — in the Department devise policy. In this case, independent consultants were employed. They have come before the PAC and said that they got it wrong and that the advice given to the Minister at the time by those external consultants and by the policy experts in the Department was wrong. It is clear to me that the Ministers followed all the advice given to them and that, because that advice was wrong and was based on bad grounds, the scheme was badly designed.”
“The Member describes it as "squander": I did not see him refer to it as squander when he wrote to me a few weeks ago pleading for a constituent of his to be included in the scheme.”
“I thank the Member for his question. I take the issue extremely seriously. All Ministers take accusations of fraud and abuse exceptionally seriously. That is why, in July, shortly after taking up post, I commissioned an independent investigation of those very accusations. The review has been examining a sizeable number of installations across Northern Ireland and has identified significant weaknesses in the scheme. Those findings will be used to inform the next steps. Clearly, we will include consideration of recovering payments from any participants found not to be complying with their obligations under the scheme.”
“I accept the points that the Member has made. I am sure that, in his role as Chair of the Committee, he will ensure that we learn lessons. That is absolutely critical, and that is what we have been doing through a range of investigations that the Member and his Committee are very familiar with. We must not only learn those lessons but implement the recommendations. We have to manage the scheme moving forward, and new arrangements and a specific team have been put in place to do that and to give it the attention that it deserves. We have to learn those lessons from RHI and apply them to other projects not just in my Department but across government and the whole Executive.”
“As I pointed out in my answer to Mr Mullan, the very serious allegations of fraud and abuse that were received have been given the due serious attention. That is why we have commenced and carried out the investigations that we have. I am absolutely adamant that, where there is proof and evidence of abuse of the scheme — the important bit of this is that there has to be proof and evidence — all appropriate actions should be taken, including, if required, criminal proceedings against anybody who has abused or sought to defraud the scheme.”
“That requires further detailed discussion, including legal advice and further engagement with the European Commission, given that the scheme received approval within the state aid regime. I plan to bring a proposal to the Assembly in due course and issue a consultation document as early as I can in the new year. We are also pursuing stronger enforcement of the existing regulations through Ofgem so that abuses of the scheme are addressed as effectively as possible and any possible fraud cases dealt with rigorously.”
“As the Member and the House will be aware, the issue is subject to a live PAC investigation. I am sure that the Member and other Members would not wish me or themselves to do anything that would compromise a successful outcome to that investigation. <BR /> <BR />These are serious issues that I am very seized of the importance of. I am dealing with the matter on an ongoing basis to try to find a resolution to many of the issues that have flowed from the allegations and the concerns that there have been about the renewable heat incentive. My Department is developing a proposal for changes to the renewable heat incentive that, if accepted, will lead to a significant reduction in future costs to the Northern Ireland Executive.”
“As the Member will be aware, shortly after taking up post, I commissioned an independent review of allegations of abuse in the renewable heat incentive (RHI) scheme. It has identified cases of possible gaming and non-compliance. I can confirm that work is ongoing to investigate the potential to take enforcement action where there is evidence that there has been non-compliance with the eligibility requirements. Advice has been sought from the Departmental Solicitor's Office, and discussions are ongoing with Ofgem, as the scheme administrator.”
“I want to see the same standard of figures spread across Northern Ireland and everybody benefiting from good Internet access. As I say, that will help competitiveness in the economy. As the Member knows from his constituency, there are a lot of good businesses in rural parts of Northern Ireland for which good Internet access is now an absolutely essential requirement. Many do not have good enough access as it is. I want to see us invest more. I look forward to the Member's support for more funding in the Budget for broadband investment, which will help people in his constituency and elsewhere.”
“There is the statement for the local press already written. <BR /> <BR />When you look at the data for broadband availability for Belfast, for example, you will see that 100% of premises are able to receive five megabytes or more and 97% can receive 30 megabytes per second — really fast speeds. We have done well in investing in cities such as Belfast and towns across Northern Ireland. I am not saying that there are not pockets in towns and cities where there is a problem, but it is almost entirely a rural problem. That is where the investments have been made. The broadband improvement project has been investing most of its money in rural areas, and I expect that any future scheme will do that. I am not happy with having very good figures just in Belfast, Londonderry or other urban areas.”
“I have had discussions with Ofcom about that and a range of issues. I have had discussions with some mobile providers. Some are keen to ensure that their footprint and infrastructure in Northern Ireland are enhanced and improved. Acknowledging that it is a regulated industry, I am keen to continue to monitor and work with the various mobile operators not just to enhance 4G but to seize the opportunities that 5G will present.”
“I thank the Member for her question. Her point is a good one: we are somewhat transfixed by getting fibre to premises. I do not want to say that that is not what I want to do — my ambition is to get fibre to as many premises as we can to get the fastest speeds available — but alternative technologies are available. I mentioned wireless and satellite, which maybe had a bad reputation but are fast improving. The Member makes the point around 5G. There is an opportunity, with the eventual opening up of the 5G spectrum, to use that. It will not be a direct alternative for fixed-line fibre broadband, but it may provide the opportunity to have a decent speed of access to the Internet for individuals and businesses, particularly in remote rural areas. <BR /> <BR />It is something that I am very mindful of.”
“We are looking at the ramifications of that for Northern Ireland, how Northern Ireland might avail itself of that funding and how that is distributed. In the meantime, we have been developing an ambitious plan that would significantly improve speeds across Northern Ireland, particularly in rural areas. That will be costly and will take some time to develop, but it is something that I want to discuss in more detail with the Finance Minister during Budget discussions. <BR /> <BR />It is incredibly important that we all support ambitious and visionary plans to improve broadband. As Members from all constituencies have said to me over the past six months in Question Times, this is seen as a critical issue in all areas, and it is incredibly important for improving and enhancing the competitiveness of our economy.”
“It all ultimately comes down to money and the availability of resources. We have made improvements, and I accept that we still have work to do. Not all parts of Northern Ireland have benefited from the investments. The £60 million investment that we have made over the last number of years has improved our broadband speeds to the point where we are around the UK average. I want to be better than the UK average; I want to be at the top. I want Northern Ireland to have the competitive advantage that comes from having access to superfast broadband for businesses and companies wherever they are in Northern Ireland. <BR /> <BR />I very much welcome the Chancellor's pledge to invest £1 billion for better broadband in the UK.”
“There are, as I have pointed out in the House before, alternative technologies available, so people who struggle to get fibre into their premises, and will be some way down the line in getting it, can avail themselves of the rapidly improving technologies of wireless and satellite. I encourage the Member to mention those when people in his constituency are asking about speeds. Instead of just looking at fibre and fixed line, they should also look at the alternative technologies. My Department can assist in the funding of that to ensure that everybody gets access to a reasonably affordable and satisfactory speed of broadband.”
“I do not have the figure for the exact investment, but I am happy to provide that in more detail to the Member. I have the headline figures, which I can repeat. The Northern Ireland broadband improvement project has improved broadband access for over 46,000 premises across the whole of Northern Ireland. When you break that down on a constituency basis, for Newry and Armagh, which is the Member's constituency, around 7,000 premises have seen improvements. Of those 7,000, 25% have taken up the availability of those services. So, a further 75% have been enabled to have superfast broadband but have not availed themselves of it. <BR /> <BR />As I said in response to Mr Boylan, that is not where we see this finishing by any means; we want to roll-out better speeds to people right across Newry and Armagh and the whole of Northern Ireland.”
“The Member will appreciate that there are always individual circumstances that mean that you cannot get the very fast speeds to absolutely everybody, and 28% of people in his constituency have speeds of more than 30 megabits per second. So, around a third of the constituency have the fastest available speeds. We need to work on the 12% who have less than 2 megabits per second by whatever means — superfast roll-out, the broadband improvement scheme or alternative technologies — to make sure that they get a satisfactory broadband speed.”
“Average download speeds, as I mentioned, are 21 megabits per second, which are well in excess of the 10 megabits per second that the UK Government want to set as a universal service obligation. <BR /> <BR />I will not deny that there are some who still do not have satisfactory speeds of broadband. I answered some questions the last time about Fermanagh and South Tyrone, and the same pattern is replicated in other constituencies in Northern Ireland. About 12% of people in Newry and Armagh have speeds of less than 2 megabits per second. That is not acceptable; in this day and age, we aspire to having fewer people in that position.”
“I am aware of the investment in the Republic of Ireland that the Member mentioned. They have similar problems to the ones that we have with rurality except on a much greater scale, and they have a very challenging job to get more fixed line and more fibre to premises. <BR /> <BR />As I mentioned to the Member in response to the substantive question, I have a good track record from making over £60 million of investment over the last number of years, which has unlocked similar figures of investment by the private sector. So, in excess of about £100 million has been invested. That has produced improvements for people, including those in the Member's constituency, where there is 62% superfast broadband availability, although not everybody has taken that up.”
“<BR /> <BR />In recognising the importance of access to faster broadband, the Executive's draft Programme for Government includes an indicator to improve Internet connectivity.”
“My Department is also managing the superfast roll-out programme, which, by 31 December 2017, will provide access to superfast broadband with speeds of at least 24 megabits per second to a further 38,000 premises across Northern Ireland. Again, those will primarily be in rural areas. It is important to recognise that, where fixed-line broadband is not viable, there are other technological alternatives available. Details of those can be found on my Department's website, and we intend to publish further information in respect of that. For those premises that continue to have access to services of less than 2 megabits per second, my Department offers assistance with the cost of installing a basic broadband service using satellite or wireless technology.”
“My Department's Northern Ireland broadband improvement project has already improved broadband access for over 46,000 premises. Within the Newry and Armagh constituency, almost 7,000 premises have seen improvements, 1,774, or 25%, of which have taken up new services. <BR /> <BR />The contract that was awarded to BT has a mechanism that requires BT to return funding for reinvestment when take-up of service exceeds a certain threshold. That will allow more premises to see improvements.”
“With your permission, Mr Speaker, I will answer questions 2 and 6 together. <BR /> <BR />Since 2008, my Department has channelled almost £64 million to encourage private sector upgrades to our telecoms networks, primarily in rural areas. Currently, 83% of households in Northern Ireland can access the Internet, compared with 86% across the UK. In Northern Ireland, 94% of premises can now access broadband services at 2 megabits per second or better. Across the UK, the figure is 98%. Broadband download speeds in Northern Ireland are continuing to increase. The average download speed now stands at 28·3 megabits per second, which is just below the UK average of 29 megabits per second. While there is no doubt that that investment has brought significant improvements for many rural dwellers, I recognise that more needs to be done.”
“In quarter 3 of 2016, it recorded that 56·8% of cars in border region shopping centres had Republic of Ireland registrations. That has grown from 33% in quarter 1 to 43% in quarter 2 and, as I said, is up to nearly 57% in quarter 3. So, there is a boost from the fall in the value of sterling, which is of much benefit to local retailers.”
“The most recent figures, from 2015, show that the contribution that it makes to our economy through gross value added is down by around £240 million but its contribution in value to our economy still stands at around £4·8 billion, which is around a quarter of the total economy. About 10% of all Northern Ireland businesses are retail businesses and about 37% of the total turnover is in retail. So, it is a big part of our economy. Those figures are comparable with the UK average. <BR /> <BR />In terms of bearing up, I am very pleased that there has been a boost to many retailers across Northern Ireland, particularly in border regions, as a result of the fall in the value of sterling. InterTradeIreland does some work in analysing car registrations in car parks at shopping centres and supermarkets along the border region.”
“I accept and acknowledge — I think we all recognise — the range of challenges that the retail sector has been facing and continues to face. As I mentioned to Mr Chambers, we see a huge increase in the volume of trade being done online. It used to be in just a few small sectors, but it now seems that it is being done in even groceries and convenience goods in some areas. So, there is a huge challenge there. <BR /> <BR />Retail remains an important part of our economy. We may not be able to support it, for the reasons that I have outlined in the traditional sense of what we do with manufacturing, production or services, but it is a huge part of our economy, and I want to see a growing economy that benefits all sectors, including retail. It remains our largest employer. Around one in six of all jobs in Northern Ireland is in retail.”
“I think that he needs to carefully consider this, and I am sure he intends to do so. Obviously, the Executive will take a final position in respect of his proposals when the consultation is over.”
“<BR /> <BR />Nobody wants to prop up or artificially support any business in any sector but, given the challenges that retail has faced, particularly from the influx or rise in online sales over the last number of years, there is a need to provide some support. We have done that through the small business rate relief scheme and empty premises relief, for example, which I think the current Minister has rebranded. It has allowed over 500 new businesses to open up in what were previously vacant shops across Northern Ireland. So, we have a proud record. I know that the Minister is proposing changes to the rating system. I think that there is a need for an examination and reform of elements of the rating system but, as the current Minister is finding out, when you change one element it has a knock-on effect elsewhere.”
“I am tempted to ask the Member for his view. He is a retailer of some experience. I used to work in retail myself, but I do not have the experience that the Member has. <BR /> <BR />The Executive have a proud record of supporting small businesses, which includes many retail businesses. I am personally very proud of the record that my party has in the Department of Finance and the introduction of the small business rate relief scheme, which grew in size over the years from a modest scheme to where it now offers £20 million worth of support, on an annual basis through rates relief, to thousands of businesses across Northern Ireland. I know from experience that many businesses credit the small business rate relief scheme with helping them to keep people in employment and, in some cases, helping them keep their business alive.”
“No matter where they are located in Northern Ireland, if they have an online retail element and they are selling outside the region, genuinely additional and perhaps working in wholesale to retail — and they fit all the various criteria that any application has to go through — they can be considered for support of a financial nature.”
“<BR /> <BR />I pointed out some of the range of types of support and signposting that Invest NI can offer to retail businesses that are short of actual financial support, or support to create jobs or other areas of their business. An exception, I suppose, is online retail or wholesale distribution to retail. That would only be where they have export opportunities and, if they were genuinely additional in job creation and sales, they could be considered for support by Invest Northern Ireland. That would be on a case-by-case basis. Examples of that do not come up very often but, if they do, they will be assessed on their merits.”
“As I pointed out to the Member in my initial response, policy has traditionally been, for very good reason, not to financially support businesses in the retail sector. They tend to be, by and large, locally facing and not generally export-focused; and there is concern around issues of "displacement", as it is called. Investment in a retail business, say for example in Omagh, could displace jobs or trade away from one in Strabane. Clearly, whilst that might benefit one business, it would have a knock-on negative effect elsewhere. Those are some of the reasons why we have not, and we will continue not to, support retail business in the way that we do other sectors, such as, say, manufacturing.”