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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“<BR /> <BR />Supporting managers to manage sickness absence is, of course, of the utmost importance. I am aware that the Northern Ireland Civil Service managing attendance training provisions have been reviewed and that a revised package of training measures has been agreed. All staff will have health and well-being and compliance with Northern Ireland Civil Service policy and procedures incorporated into their annual personal objectives. In addition, all departmental business plans will include, as a priority, the provision of the appropriate staff support measures. <BR /> <BR />My officials are currently considering two NISRA reports on female absence rates and sickness absence rates in the 55-plus category. High levels of female absence rates have been an area of particular concern.”
“To ensure that this is the case, a series of compliance measures have been introduced in relation to the prompt recording of absence, return-to-work interviews and the provision of appropriate certification. These additional measures will be reviewed by each departmental board, alongside their existing absence analysis, to provide the necessary reassurance, governance and authority to ensure that any actions required are being taken forward in Departments. HR Connect is supporting this strategy by providing specially commissioned reports to monitor the achievement of these targets. Another initiative being explored is how the most advanced HR Connect reporting tool, Oracle Business Intelligence, could be exploited to deliver comparable management information directly to line managers across the service.”
“The launch of this charter clearly demonstrates a commitment from senior staff in the Civil Service to the principle of having an engaged workforce. The charter sets out the importance of clear and visible leadership, engaging with managers, listening to staff, measuring levels of engagement, and what is expected of our staff. Departments will use the charter as a springboard to consider how best to improve staff engagement at all levels. <BR /> <BR />The effective management of sickness absence remains a priority for all Departments. I am confident that all Departments are working hard to reduce sickness absence and to ensure that the policies and procedures that are in place to manage sickness absence are being applied consistently.”
“Suitable clients are offered access to the programme as part of their OHS assessment, with the option of activating the programme through OHS or their GP practice. Since its introduction, 99 sessions have been accessed by staff. The programme is also actively promoted through WELL and the rehabilitation programme provided by the Northern Ireland Civil Service welfare service. <BR /> <BR />The Northern Ireland Civil Service is committed to improving staff engagement. One of the reasons for this is that there is strong evidence to suggest that there is a correlation between increased staff engagement and reduced absenteeism. I am happy to advise Members that a staff engagement charter was launched on 4 March 2015.”
“It is an innovative programme that I am very proud of, and I welcome the Committee's praise for the WELL programme. <BR /> <BR />The "Beating the Blues" online cognitive behaviour therapy programme for those suffering from depression and anxiety, also supported in the report, was introduced into Occupational Health Service practice in April 2011. It has been widely acknowledged that people on long-term sickness are at a high risk of developing depression. In addition, depression is in itself a significant primary cause of long-term sickness absence. Depression is regarded, therefore, as a major predictor of non-return to work and, the longer the spell of absence, the less likely a return to work.”
“I am also happy to report that the WELL programme, which received a positive commentary in the Committee’s report, has been extended for a further three years. The WELL programme was mentioned and praised not just in the report but by several Members in their contributions to the debate. It is worth acknowledging the success of that innovative scheme, which, as I said, has been rolled out across the Civil Service and has been extended for a further three years, Since its introduction, we have seen a 2% increase in employee engagement; a 2% improvement in health and well-being; a 2·3% decrease in staff absence due to mental health problems; and better attendance at work in 2013 compared with the 2010-11 figure, which saved us roughly £1·6 million.”
“In many stress-related cases, an immediate referral to the Occupational Health Service is a routine intervention, while welfare and other support mechanisms are also organised. The availability of that information has helped Departments to formulate an organisational response that is specific to their particular needs. It allows for more targeted interventions for specific business or hotspot areas that are experiencing particular issues. Again, targeted responses were a recommendation in the Committee’s report. <BR /> <BR />I am happy to advise Members that mental health first-aid training, which provides participants with the knowledge and confidence to recognise mental health problems, to respond helpfully and to support the person's recovery is now being offered to all Northern Ireland Civil Service staff.”
“To maximise its benefits, the survey is being managed by a cross-departmental working group, which includes the Health and Safety Executive for Northern Ireland. The working group is coordinating and managing the survey and the response on behalf of Departments. Departments have been asked to consider the impact of the voluntary exit scheme and the reduction in the number of Departments when considering their individual action plans. <BR /> <BR />The sickness absence recording tool, which is mentioned in the report, is a standardised list of reasons used by the Northern Ireland Civil Service to record sickness absence. It provides for more detailed reporting on types of sickness absence as a result of stress-related illness, including work-related stress.”
“<BR /> <BR />The Northern Ireland Civil Service is going through a major period of change, which many Members mentioned, with the introduction of the voluntary exit scheme and the reduction in the number of Departments. It is therefore vital that we have the appropriate support available to staff and managers to mitigate any potential impact that health and well-being issues will have, not only on individuals involved, managers and colleagues but on the business and the service that we provide. Preventing sickness absence rather than reacting to it is key. I am therefore pleased to inform colleagues that that approach is being adopted by Civil Service Departments. <BR /> <BR />The 2014 well-being survey includes stress as a major part of its analysis.”
“That type of illness, and its long-term nature, has had a significant impact on overall sickness absence levels in the Northern Ireland Civil Service for a number of years, accounting for around a third of all sickness absence. That is not particular to the Northern Ireland Civil Service; rather, it has been a general trend across the public and private sectors in recent years. Many observers suggest that that trend will continue as issues such as job insecurity, financial pressures and general life difficulties become increasingly apparent. A point that many Members who spoke made was that it is not clear whether that means work-related stress or, indeed, stress that is related to other aspects of people's lives.”
“Although the Civil Service is substantial in size, with roughly 28,000 staff, the health and education sectors account for considerably more staff, with some 65,000 in health and 50,000 in education. Action to tackle sickness absence levels has to be taken right across the public sector if we are to maximise savings from managing sickness absence. <BR /> <BR />I welcome the recommendations contained in the report. I acknowledge that sickness absence is a topic that requires constant attention and that there is always more work to be done. However, I am pleased to inform Members that much of what has been recommended in the report for the Northern Ireland Civil Service is either in place, under development or being considered for introduction. <BR /> <BR />Mental health and well-being features heavily in the report. That is not a surprise.”
“I put it on the record that I contributed to the Deloitte 'The State of the State' report. That is perhaps why it was worthy of being included in his party's manifesto for the upcoming election. That is no doubt a very accurate explanation of why that is the case. <BR /> <BR />DFP is responsible for the Northern Ireland Civil Service sickness absence policy and procedures. In the time that is available to me, I will deal with the recommendations that relate to Northern Ireland Civil Service Departments only. I will leave comments on the health and education sectors to their respective Ministers, and I encourage members of the relevant Committees to pursue recommendations directly with those Ministers.”
“<BR /> <BR />There were a lot of contributions throughout the debate, and, as you would expect, I am always very interested to hear suggestions about saving money. The figure of £37 million, which relates to the savings in the entire public sector if we were to take sickness absence down to the UK level, has been put out there by the Committee in its report. Whilst that would not realise £37 million in additional cash, it would be in additional productivity. Irrespective of whether it is cash or better productivity, it is still a saving that we should pursue, and, indeed, are pursuing. Additional productivity was a point laboured by Mr Nesbitt, who is no longer here. He encouraged us to look at the Deloitte 'The State of the State 2014-15' report, which, as he indicated, I think, informed part of his manifesto.”
“<BR /> <BR />It is a serious issue; it is taken seriously by the Executive, and that is reflected in the Programme for Government, which sets a target for reducing sickness absence. The target is a challenging one, and we have not been successful in reaching it every year, but I welcome the fact that there has been a general downward trend in sickness absence in the Civil Service. It is important at the outset to note, as many contributors did, that, although sickness absence is a problem, over 55% of civil servants in the most recent year, as Mr Girvan reminded us, took no sickness absence. That is not just one year: it is habitually the case that over half, or a majority, take no sickness absence at all.”
“I welcome the opportunity to speak on this motion and respond to the Committee's report. I do so because sickness absence is a serious issue; during my entire time in the Assembly and my extensive membership of the Committee for Finance and Personnel down through those years, the issue has always been at the forefront of the Committee's agenda. Michaela Boyle asked that the Executive take this seriously. Looking around the Assembly Chamber, it is probably something that our Whips should take seriously as well, as it would appear that there is high degree of sickness absence in this place — perhaps some sort of lurgy or other affliction has hit Members of this House.”
“It is a constant cry from people who have been involved in various Peace funding schemes that the process can be very long and frustrating. Indeed, many have had their fingers burnt in the past and may not want to be involved in Peace IV, given their experiences of Peace III. However, I am committed, as are my counterparts in the Irish Republic, to trying to cut down the time that it takes to assess various schemes to allow the funding that is approved to go to the schemes as and when required. I say that, but with the absolute caveat that it is important that the financial fiscal processes through which we put public money in Northern Ireland continue to be used but in a more efficient and quicker manner.”
“The House will be aware that the INTERREG V programme has already been approved by the European Commission. Agreement was reached in the Executive and between us and the Department of Public Expenditure and Reform in the Irish Republic on the Peace IV programme. That has been transmitted to the Commission for its approval. The Commission has come back with some queries, which we are dealing with systematically. I hope that we will have approval for the scheme in the next number of weeks, which will allow it to go out to open calls later this year.”
“As you would expect, the pay remit deals with pay issues for Northern Ireland Water staff. It also deals quite substantially with productivity issues and benefits that Northern Ireland Water management hopes to be able to produce as a result of modernisation and transformation moving forward. It is easy to look at the pay side and to understand it superficially, but I have been carefully considering the productivity side over the past number of days. I hope to be in a position to approve the pay remit within the next 24 or 48 hours.”
“I recall the strike and its impact. I am sure that there are Members who represent constituencies in the west of the Province and constituents who remember it far better than the Member does or I do. The answer to her question is yes. I received the pay remit from Northern Ireland Water on my desk at the end of March. I have had it for a couple of weeks, and I have been carefully considering it over that time.”
“As the economy grows, however, it is incumbent on our businesses, as their business improves, that they pass on those benefits to their staff who, in many cases, absorbed significant pay cuts during the recession, stuck with those firms and stayed loyal to them so that they could retain the skills and experience that they brought. If those businesses are doing well, and the markets in which they are operating are improving, any sensible business should increase its staff's wages. That, obviously, helps the economy in a broad sense, and it also reduces the benefits bill, as those in-work benefits, which are sometimes forgotten about in a debate on welfare reform, would naturally reduce as people get paid more.”
“I go back to the earlier question. It is not my job to tell businesses how to do their job. They are in a far better position than I am or, indeed, anybody in the House is to know how their business operates, the market that they are operating in and the circumstances that affect their business. Whilst it is maybe easy for me, standing in my position, to look at the totality of the economy and say that things are good, that this sector is up, that sector is up and, indeed, even the construction sector, which had been doing very badly, is showing signs of growth and recovery, neither I nor any part of government can dictate to firms and businesses that their staff's wages should go up.”
“We sometimes forget that, in the private sector, pay cuts were the order of the day in many cases. As companies get back to strength, the economy grows and companies benefit from a growing economy here in Northern Ireland and those in our neighbouring countries and around the world, that should then be reflected in increasing wages and pay packets for our workers.”
“Yes, I do. I say that quite clearly knowing that, whilst the economy is growing and the latest figures in Northern Ireland suggest a year-on-year increase of 1·2% between quarter 3 of 2013 and quarter 3 of 2014, that the claimant count has fallen for 27 consecutive months and that unemployment is down at 6%, which we should welcome, there are still many businesses in Northern Ireland that are struggling. What I also know — and I am sure that many Members will know it from contact with businesses in their areas — is that, during the recession, although some businesses shed staff and, in extreme circumstances, some had to close unfortunately, others kept themselves going through cutting wages. We talk about pay freezes and pay restraints in the public sector.”
“This is the law now. My understanding is that those who are over 60 do not get the same amount of payment. They are capped at a six-month salary as opposed to the 20-month salary for those who are under 60. Obviously, in some cases, it may be financially less attractive. However, given the stage that they are at in their careers, there may be other reasons and other factors as to why people who are a little older might still find it attractive to take up the voluntary exit scheme.”
“There is no weight given to age. Age does not carry any more or less of an impact. The system that is governing this is legislation that passed through this House some years ago: a Superannuation Bill, now Act. If I say anything wrong, I will correct it in correspondence with the Member.”
“I am going to go back to a previous question from Lord Morrow, who asked about the scheme. If the Member will bear with me, I will give him the specific criteria. I have just found them; by the way, I was ad-libbing up to that point. <BR /> <BR />There are two criteria. The criteria that have been applied in order by grade, analogous grade and discipline, where necessary, to determine who should exit under the scheme are principally based, over a one-year period, around best value for money using the least cost up front, which is the payment that would be required to give somebody a voluntary exit payment, and the maximum payback, which is how much it yields in pay bill savings. Now, that will, in some cases, have people who are exactly the same. In situations where there is a tie on those criteria, random selection will be used.”
“Now, some of those will be businesses that have done OK out of revaluation, but many will be businesses that have done badly out of the revaluation. I hope that that, rather than some other transitional relief scheme, will be able to afford those businesses some support and allow them to continue to stay in business in the short term and grow in the longer term.”
“Those are businesses that one would expect to be paying more, compared with the 2001 valuations of those properties, so I was not sure about the ethics of offering some support through the public purse, which is, in effect, taking it from other ratepayers and giving it to those big businesses. <BR /> <BR />I was obviously concerned about smaller businesses that would lose out as a result of the revaluation. That is why, rather than constructing a sophisticated transitional scheme on top of all the other very complex things that we have been doing with rates this year, the Executive agreed to extend the small business rate relief scheme — the Assembly has endorsed this — which will offer that additional £20 million-worth of support to thousands of businesses across Northern Ireland.”
“That was considered well in advance even of the publication of the new values. I was well aware that, given the fact that there would be losers in the revaluation, there would be a plea from many quarters for some special assistance, such as some sort of transitional relief, to be put in place for, so to speak, the biggest losers. I pondered that carefully over a period and I came to the very clear conclusion that many of the biggest losers are very large businesses. Some of them are big global businesses that have seen their valuations go up by 40%, 50%, 60% and even more.”
“There are still effects for retail businesses, just as there are for construction sectors and others as a result of the downturn, but other factors are hitting our retail sector as well. I am very keen that we continue, as we are this year through the small business rate relief scheme, to offer support to that important sector. <BR /> <BR />Our captains of industry and small businesspeople do the work and create the jobs. It is our job in the Assembly to support and encourage those businesses and do what we can through rates and other interventions to allow them to grow.”
“It is certainly our job to support businesses. They create the jobs and make the investments, and they need to be encouraged and supported in doing that. As I mentioned in response to previous questions, the Executive have a very good track record of supporting businesses through our rates system. It is our main fiscal lever that we have to pull, and we have done that through the small business rate relief scheme. Indeed, we have continued that into this current financial year, so several thousand businesses across Northern Ireland will receive that reduction in their rates bill. That will cost the Executive some £20 million. We have done that in spite of the fact that it was introduced in 2010 to tackle the recession. The legislation that governs it specifically talks about the downturn. That downturn has, statistically, passed.”
“I could go into some secondary streets as well. Bridge Street in Coleraine went down by 20%. New Row in Coleraine went down by 10%. Contrast that with some of the retail parks, which are up by 20% from their previous valuation. I suggest that, if that is the average in those areas, there are plenty of winners in Coleraine and right across the East Londonderry constituency. I accept that not everybody is a winner, but, in a revaluation, not everybody is going to be a winner. However, a significant number of business properties in the Coleraine area, east Londonderry more broadly and, indeed, right across Northern Ireland are reflecting where the market is and are paying lower rates bills today than they were in the past.”
“I do not have those specific figures in front of me, but I am happy furnish the Member with them, if she will forgive me for ad-libbing, I suppose. In her constituency, East Londonderry, you can take Coleraine as an example; it is the principal or premier borough — I do not know how they would describe it. As a result of the revaluation the average increase in rates was 7%. Let us take high streets in the constituency. If you look at Church Street in Coleraine, you will find that its valuation fell by 40%. This is the average in the area, and I appreciate that there will be differences. In The Diamond, rates went down by 45%. In Kingsgate Street in Coleraine, they went down by 30%. The rates of the Main Street in Garvagh went down as well.”
“I want to look at all those and other issues to make sure that, moving forward, we have a suitable system to locally tax our businesses.”
“There are some who do not like that it is based on property values and others who put forward suggestions on how it might be replaced. I am open to looking at all those possibilities. I am also open to looking at the reliefs and allowances that we have in place. They have been there to try to support business and to keep it in place and operating through the downturn. Let us not forget that the small business rate relief scheme was an intervention to help businesses through a very difficult recession. Many of our retail businesses still struggle not because of the recession, per se — in some cases it is because of its effect — but because of other lifestyle changes, changes in our town centres and the effect of large out-of-town retailers.”
“In his recent Budget statement, the Chancellor announced that he was going to review business rates in England, and some have called on me to review them. In fact, a Member who was in the Chamber not that long ago called on me in his local press to review the business rating system in Northern Ireland. Two years ago during a Question Time in the House, in response to a Member's question, I announced that it was my intention to review business rates in Northern Ireland and to do so after the revaluation had bedded in. That process will start in the next number of weeks. In fact, we will have an innovation lab that will look at this issue and discuss it with retailers and other businesses. <BR /> <BR />I go into that review with an open view about what the outcome should be. A lot of people express concern about the rating system.”
“I accept that that is not the case for every town centre and retailer, but it has tried to redistribute more fairly where the rates burden should lie, reflecting the changes over the preceding 13 years.”
“The important point for the Member and the House to note is that the Assembly does not raise any more money through the regional rate as a result of the revaluation; it merely redistributes money from one section of ratepayers to another to reflect where the market has gone and the changes in circumstances that have affected that. In those circumstances, there will always be some winners and some losers. There will be some winners in the Member's constituency, and there will be some losers in his constituency, just as there are in every constituency across Northern Ireland. <BR /> <BR />It is significant, though, to note that the Northern Ireland Independent Retail Trade Association called for the revaluation to go ahead. When the revaluation results were published, its chief executive, Glyn Roberts, said:”
“It is not my job to keep businesses open in that sense. It is not my job to step in and do that. What we have done through the rating system over the last number of years is to be incredibly generous through the support that we have given in the small business rate relief scheme, for example, which has ensured that over half of business properties in Northern Ireland get at least 20% off their rates. We continue to keep in place industrial derating, which offers over £60 million worth of support to many of our bigger businesses in Northern Ireland. <BR /> <BR />A revaluation will always produce winners and losers.”
“The regional rate has actually gone down a little to reflect a modest overall increase in values and thereby fulfil the Executive's commitment to ensure that this revaluation is revenue-neutral in real terms.”
“Many high streets and town centres have benefited, but there are others, such as modern convenience stores and large edge-of-town or out-of-town food stores that now pay a lot more than they did before. This reflects their success in the real world and mirrors the relative decline of many of our traditional shopping areas. <BR /> <BR />At the end of the day, it is not LPS or DFP that decides who should pay more or who should pay less; the property market has already done that. The problem for some stems from the gap between this revaluation and the last one. It could be argued that those now paying more should have been paying it well before now. <BR /> <BR />Finally, it is worth pointing out that the revaluation does not raise more money from the system for the Assembly.”
“The Executive agreed back in 2012 to undertake a revaluation in response to calls from the business sector. My assessment is that it was the right thing to do and has helped to rebalance the rating system. We could not have continued to ask commercial ratepayers to pay business rates that are shared out on the basis of 2001 rental levels given the fundamental changes that have taken place in the way in which people live, work, shop and go about their business. <BR /> <BR />This exercise in redistribution, however, means that there are winners and losers. I cannot go into all the effects of the revaluation now, but take, for example, the retail sector: the outcome is that there are far more winners than losers.”
“I would expect that perhaps Minister Kennedy would have a better appreciation of that problem. I encourage the Member to draw any concerns he has from his locality to the attention of the Minister for Regional Development or, if not, I am happy to pass them on to Minister Kennedy.”
“I was just checking the precise figure that I gave to Mr Maskey in my previous response. In 2013-14, 75% of government contracts were awarded to Northern Ireland firms. That £2·6 billion, more or less, is being spent every year in Northern Ireland on centrally-let government public contracts, of which 75% are going to Northern Ireland firms. I am sure that we would all like to see that being higher, but it is a record that compares favourably with other jurisdictions in the British Isles. <BR /> <BR />I have not been made aware of the particular issue that the Member raises. I suppose that, in some ways, I would not expect to be; road contracts are obviously taken forward as the responsibility of the Minister for Regional Development. Roads Service — Transport NI, as it is now called — has a centre of procurement expertise of its own.”
“Indeed, about two thirds go to local SMEs, so we have a good record in Northern Ireland not just on prompt payment to contractors but on getting local suppliers. We do that without having to manipulate. As the Member will be aware, procurement is highly governed by the European Union and you have to be very careful about what you do at local level so that you do not breach European law. Within the laws that are there, we have a very good record in this part of the world of ensuring that local suppliers get work.”
“There are no particular measures or statutory provisions in place to ensure that. What is found in most cases is that those main contractors, even if they are not locally based, bring on a large number of locally based subcontractors, particularly in construction, to do their work and assist them in the provision of whatever capital project it may be. Again, like our prompt payment, we have a good record of letting contracts of all types, whether construction or supplies contracts, to suppliers in Northern Ireland. We have a record that sometimes does not get through. Sometimes you would think, even listening to debates in the House, that local suppliers are not getting to deliver government contracts, but that is not the case. I think that the latest figures show that over 70% of contracts go to local firms.”
“That was dealt with between my Department and that main contractor. <BR /> <BR />My Department relies on companies coming forward. I accept the point that the Member makes about the fear that some people have, but, if subcontractors are even prepared to go through Members or other elected representatives to bring that to my attention, I assure the Member and the House that those issues will be dealt with with the appropriate seriousness.”
“<BR /> <BR />Perhaps more relevant to the Member's question is that a procurement guidance notice was issued in January 2012. It has now been backed up by regulations introduced this year that monitor the performance of main contractors in a range of ways, including on their payment to subcontractors, and a certificate of unsatisfactory performance can, in appropriate circumstances, be issued. Indeed, main contractors who are found to be failing to pass on the prompt payment that government is doing — government is very good at paying; some 91% of our invoices in DFP are paid within 10 days — can be struck off public contracts for 12 months. Now, there has been no single case of that so far, but, as I revealed in the first answer to the question, one of the samples taken last year showed that there were some issues.”
“I thank the Member for his supplementary question. The measures that I and, more so, my predecessor have introduced in that regard have come as a result of concerns expressed to us by small businesses — contractors in supply chains, particularly in the construction sector. Measures have been introduced over the last number of years to deal with the issue, which has been highlighted, I suppose, in the very high-profile collapse of some local construction firms. In January 2013, we introduced the ability to have project bank accounts for projects of over £1 million with a significant amount of subcontracting going on. Ten pilots have been chosen for that, and feedback so far has been positive. Indeed, we may well look to extend it away from construction and into supply contracts too.”
“The monitoring regime involves dip sampling to ensure that prompt payment is happening in practice. In 2014, a sample of 15% of payments was validated, with only one irregularity found. That has since been resolved by the relevant centre of procurement expertise. For supplies and services contracts, CPD has implemented standard terms and conditions requiring subcontractors to be paid within 30 days. When issues of non-compliance are highlighted to CPD in projects that it manages, they are pursued with the contractor so as to facilitate early resolution.”