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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“The Northern Ireland Law Commission was asked to review the law on defamation and, on 27 November 2014, issued a consultation paper that invited views on a range of issues. The consultation ran until 20 February of this year. <BR /> <BR />The commission is to close on 31 March 2015. Although it is hoping to produce an analysis of the responses by that date, it will not have produced its final report, which will contain any recommendations for legislative reform. It may be possible to retain the services of the lawyer who is leading the review project for a further short period to allow for the completion of the final report. My officials are exploring the options with the commission and officials from the Department of Justice.”
“I would certainly support that expansion of their role. <BR /> <BR />The Member has declared his interest as a member of a credit union, and I am sure that he is not the only one in the House. Around 20% to 25% of people in Northern Ireland are members of a credit union, yet across the water it is around 4%, so the opportunity to offer those additional financial products is much greater in Northern Ireland. That could address some of the issues that Mr Dallat raised in respect of people having to borrow from moneylenders and having low levels of financial capability in Northern Ireland.”
“I think that there is a view that it would be beneficial, even if some credit unions do not want to offer those things, for the option to be there for them.”
“Responsibility for credit unions rests with the Department of Enterprise, Trade and Investment. I was a member of its Committee at that time. It was a period when a lot of financial institutions were having difficulties, and there was an attempt to get the cover of the protection scheme for savings. That required regulation by what was then the FSA. One of the other objectives at that time was to be able to expand what credit unions in Northern Ireland are able to do and the products that they are able to offer. Compared with their counterparts in mainland Britain, they are unable, or have not traditionally been able, to offer current accounts, mortgages and those sorts of financial products.”
“In fact, in recent times, the Minister for Social Development and I have discussed how we might assist the credit unions to move to another level. He may wish to continue to discuss that with me at this minute, if he is not distracted by other matters.”
“Certainly, Mr Deputy Speaker. I am more than happy to say that my party has stuck to every word and number that it agreed to in the Stormont House Agreement. To be fair, it took Sinn Féin several weeks to back away from the agreement. It was several hours before Mr Dallat's party backed away from what was agreed at Stormont House. <BR /> <BR />I am content, however, and prepared to work with credit unions, building societies and anybody else to deal with the issues that the Member raises. Perhaps as a result of the discussions that we will now inevitably have with credit unions because of this issue, an opportunity — an unwitting opportunity, perhaps — may present itself to discuss other opportunities for that movement.”
“There is no sense of shame from me or anybody on this side of the House today. We have stuck to our word and to what we agreed. I do not think —”
“I am not surprised that the Member does not want to talk about corporation tax because his party is no better than Sinn Féin in that regard.”
“It seems that, moments and days away from grasping what some people thought was the impossible, Sinn Féin, which I thought supported the devolution of corporation tax and lowering of the rate of corporation tax to bring those 37,500 new jobs to Northern Ireland and increase our economy by an estimated 10%, is now going to back away from that opportunity, and we are going to lose the opportunity of a lifetime to change the Northern Ireland economy for the better. <BR /> <BR />It is up to Sinn Féin to explain not only why it has welshed on the agreement on welfare reform but why it has walked away from corporation tax, which is the inevitable result of what it has done today.”
“We stand by every word and number in the Stormont House Agreement and the Stormont Castle agreement because of the many benefits that those agreements brought to Northern Ireland, not least the fact that they were securing the rate of corporation tax and our ability to lower it. <BR /> <BR />From his membership of another place, the Member will know that that Bill has been proceeding through that House at a pace. It was likely to come on to the statute book in the next number of weeks. The campaign that we have been waging, for I do not know how many years, was about to become successful.”
“I thank the Member for his question. He is right: there was an air of unreality coming from the opposite Benches in asking a question about the benefit of devolving and lowering corporation tax in Northern Ireland for small to medium-sized enterprises here. As the Member, the House and, more importantly, those outside the House will appreciate, the devolution of corporation tax was dependent on getting a Budget agreed, which we did, and getting welfare reform legislation through the House, which was proceeding. Devolution of corporation tax was contingent on both those things happening. Given the actions of Sinn Féin in welshing on the agreement that was made at Stormont House and at Stormont Castle, the welfare reform element is clearly not happening now. My party — the Member's party, our party — has kept its side of the deal.”
“Some of the larger firms that are already here and some of the indigenous firms that will see the release of additional capital into their accounts as a result of a lower rate of corporation tax will take a decision to invest and to create more jobs. It is that sort of virtuous circle that we hope to achieve by lowering the rate of corporation tax.”
“<BR /> <BR />A lot of SMEs in Northern Ireland would not benefit directly from a reduction in corporation tax because of the way in which they are structured, but the hope and the expectation, based on the evidence, is that the creation of 37,500 net new jobs over the next 10 years and a growth in our economy of around 10% will assist all businesses in Northern Ireland, whether they are small, medium-sized or large enterprises and whether they are indigenous firms, firms that already invest in Northern Ireland or firms that are investing because of a lower rate of corporation tax. It is that growth in the economy, with more jobs and more high-paying jobs, that we hope will benefit all businesses in Northern Ireland.”
“The Member's question appears to be about SMEs more broadly and not specifically on credit unions and mutuals. <BR /> <BR />I am aware of the issues that have been raised about credit unions and mutuals. In the next 24 hours, I will be engaging with the Progressive Building Society, which is our only building society based in Northern Ireland. I also plan to engage in some way or other with credit unions in the next number of weeks.”
“Furthermore, all organisations that service the local marketplace stand to benefit from the significantly increased activity that a lower rate of corporation tax will bring. <BR /> <BR />I have plans to engage with representatives of local credit unions and the Progressive Building Society to discuss how a lower corporation tax rate can deliver benefits for them, for their members and for Northern Ireland more generally.”
“Credit unions already benefit from special corporation tax rules that mean that, where a credit union makes a loan to its members, the related income is not subject to the tax. Those rules would not be altered by the Corporation Tax (Northern Ireland) Bill. More generally, and in order to manage the potential for artificial profit shifting, certain tradable activities, including those related to lending, leasing and certain types of insurance, are to be excluded from the Northern Ireland corporation tax rate. Nevertheless, mutual building societies and other firms that may be affected by those exclusions can elect to have back-office activities included in a new Northern Ireland regime.”
“I was worrying, Mr Deputy Speaker, that a debate might have kicked off. <BR /> <BR />I thank Mr McKay for his contribution to the debate on behalf of the Committee. I will be very brief. I trust that Members will show the necessary support to the order and back the Committee in its work. Therefore, I commend the order to the Assembly and ask Members to affirm the order before us today.”
“Article 5 serves to revoke the Rates (Payments by Owners by Agreement) (Amendment) Order (Northern Ireland) 2011. <BR /> <BR />I look forward to hearing Members' comments, and I commend the order to the House.”
“Article 2 also provides that the increase in allowance will not apply to a rate made for a year ending before 1 April 2015. Article 3 then serves to reduce from 12·5% to 10% the maximum allowance that can be given to a property owner who, under article 21 of the 1977 Order, agrees to pay the rates chargeable for a property whether it is occupied or not and who pays those rates on or before the date or dates specified in the agreement. <BR /> <BR />Article 4 substitutes 10% for any allowance in an existing agreement made under article 21 of the 1977 Order between the Department and a person or body other than a housing association or the Northern Ireland Housing Executive, as housing associations and the Housing Executive already receive a 10% allowance.”
“<BR /> <BR />It is appropriate at this point to acknowledge the key role that the Finance Committee played during 2013 and 2014 in a detailed discussion of the issues surrounding the rating of the rental sector. Some of the small but important changes arising from the outcomes of that consultation process were implemented through the Financial Provisions Act (NI) 2014. The provisions in today’s order see the final outcome from that consultation being implemented. <BR /> <BR />I turn now to the detail of the order. Article 1 sets out the title of the order and gives the operational date as 1 April 2015. Article 2 increases from 7·5% to 10% any allowance given to a property owner who is rated under the compulsory liability provisions in article 20 of the 1977 order.”
“Under the Rates (Northern Ireland) Order 1977, there are two types of landlord liability for domestic property. The first falls under the compulsory liability provisions in article 20 of the 1977 Order. Landlords who fall within that provision must pay the rates on the property. The second falls under article 21 of the 1977 Order. That provision allows landlords to volunteer to pay rates on their property through a formal agreement with Land and Property Services. The landlord allowance is currently 7·5% for compulsory liability landlords. A 12·5% allowance is provided for voluntary liability landlords in the private rented sector, while in the social rented sector it is 10%. The changes that I am taking forward in this order have been informed and supported by a public consultation and are aimed at simplifying the system.”
“Their preference is to have no liability at all for the payment of rates to the Department, as is the case in the rest of the UK with council tax. Therefore, to impose a duty on a landlord to collect rates, as part of the rent, from the person who lives in the house and not make an allowance for it would represent a major shift in policy. It is not something that we can contemplate without undertaking a lot more research and consultation. For that reason, I wish to initiate a fundamental review of the whole policy area later this year, and I have asked my Department to factor that into its plans. <BR /> <BR />The order that we are debating today has the effect of creating a unified rate of compensatory allowance across all sectors and categories of liability. It will not affect the level of rates paid by tenants as part of their rent.”
“At the moment, the allowances vary, depending on whether they relate to compulsory or voluntary landlord liability, and there are differences between the private rented sector and the social rented sector. <BR /> <BR />Members may well jump to the conclusion of asking why we should give landlords anything by way of discount. I can understand why Members might think that, but I reiterate that, in essence, rates are an occupier-based charge. Even if the landlord is liable to hand over payment to LPS, the tenant still pays the rates through the rent, and the landlord is effectively acting as a collection agent. <BR /> <BR />There is another key point to make — one that sometimes gets drowned out — which is that landlords' representatives have consistently told us that they do not want anything to do with rate collection.”
“The first point that I make is that the rating system that has served us and previous Administrations for over 160 years is founded on the principle that the occupier pays. That works pretty well, given that rates are a charge for regional and local services. However, there are practical difficulties in strictly adhering to the principle when it comes to rented domestic property, because of the problems associated with recovering unpaid rates from tenants, who tend to move about more in lower- and average-value houses. That is not a new phenomenon, which is why landlord allowances are a long-standing feature of the domestic rating system here. Various discounts are given to landlords in return for collecting rates from tenants and passing them on to Land and Property Services (LPS). It helps revenue collection.”
“The final order today is the Rates (Owners Allowances) Order (Northern Ireland) 2015. Before turning to the order itself, I think that it is important to provide Members with some brief context to the statutory rule.”
“<BR /> <BR />By extending the scheme, we can help to ensure that ATMs are retained and perhaps even increased in rural wards, providing greater access and support to those communities. <BR /> <BR />I ask Members to support the measure, and I commend the order to the Assembly.”
“Far be it from me to pre-empt what the House might do in future, but, as the Member highlighted, this is a good scheme. I do not foresee it disappearing any time soon, particularly at a time when bank branches everywhere are closing, especially in rural areas. I see that Mr McCarthy, Mr Nesbitt and Miss McIlveen are in the House. They and I represent the Strangford constituency, and we know how important this is in places like Portaferry, for example, where we can recall the last remaining bank branch closing. This scheme has helped to retain a stand-alone ATM that belongs to that bank in the village. The proposal is helpful in retaining that important service that I think most of the House appreciates. Even if you do not represent a rural area, you will appreciate the importance of having ATMs and that service in the local area.”
“I again thank the Committee Chair for his comments. He raised a couple of issues, one of which I think he already received clarification from officials on, concerning what was designated rural. He is right that it was NISRA that helped to define the designated rural wards where ATMs would benefit from this exemption. When the legislation was first passed in 2007, over 200 wards were prescribed as rural. My Department will be redesignating the wards at the earliest opportunity once, stemming from the ongoing council restructuring, the settlement information is available from NISRA. <BR /> <BR />He asked about 1 April 2016. There seems to be no particular reason why that, as opposed to 31 March, is there. Perhaps it was thought that a wee change was required to see whether anybody noticed.”
“Of every £10 withdrawn from a cash machine, almost two thirds is spent locally. <BR /> <BR />I turn now to the statutory rule itself. My Executive colleagues and members of the Finance and Personnel Committee have already been advised on its detail. The Committee indicated that it was content for individual, separately valued ATMs in designated rural areas to continue to be exempt from rates, particularly given the modest cost of the scheme. <BR /> <BR />Article 1 of the order sets out the citation, commencement and interpretation provisions, and article 2 provides for the extension of the relevant date, before which the scheme must end, to 1 April 2016. <BR /> <BR />In conclusion, I look forward to Members' comment and commend the Rates (Exemption for Automatic Telling Machines in Rural Areas) Order (Northern Ireland) 2015 to the House.”
“It has done so in such a way that, I believe, this modest measure is even more important today than it was before, because of the closure of many rural bank branches. <BR /> <BR />If I may, I will outline what the scheme does. The exemption is provided for stand-alone ATMs that are individually valued in the valuation list, such as those located outside petrol stations or on high streets. It does not apply to those located in banks or building societies, which tend to be valued as part of that property. <BR /> <BR />The current cost of the scheme is around £130,000 in terms of revenue forgone. I consider that to be an affordable sum, given the benefits that it can bring. ATMs play an important role in the sustainability of rural economies. Evidence assessed by my Department demonstrated that money withdrawn locally is spent locally.”
“This scheme was initially introduced in 2007 with the objective of encouraging and sustaining the provision of ATMs in rural areas. It was originally introduced in 2007 for a fixed period of three years, but it has been extended twice, following evaluation. The latest order provides for a further one-year extension for the 2015-16 Budget period until the end of March 2016. <BR /> <BR />It is not a big policy. It currently provides rates exemption to around 70 ATMs that would otherwise be liable for a separate rates bill of around £2,000 a year, but it is still an important policy for our rural communities. The number of ATMs that get the exemption has increased from 37 to 70 since the scheme was introduced. Perhaps, most importantly, the context has changed.”
“That shows the success of the scheme. <BR /> <BR />The fact that the scheme has been extended for a further year will suggest to Members that the Department and I will do what we can to promote the scheme, but it is also incumbent on Members to promote the scheme in their own areas. By extending the scheme, we can help to ensure that more empty commercial properties are brought back into use, thereby improving the appearance of towns and creating jobs in communities. I ask Members to support the measure. I commend the order to the Assembly.”
“I thank the Member, the Chairman of the Committee, for his comments. I agree with him. I believe that this is a scheme that is worth preserving as it has been a major success story for the Department and the Executive. <BR /> <BR />The Member mentioned the geographical spread of the 375 new premises that have opened as a result of the scheme. I think that we should celebrate the fact that 375, probably fast-approaching 400, as we speak, have been confirmed as using this relief. Those businesses are spread across every district council area of Northern Ireland. I commented on a few in my opening remarks. The bulk of those — 77 — are in the Belfast area, as you would probably expect them to be, Mr Deputy Speaker. I have visited many across Northern Ireland, as did my predecessor, and they do a range of things.”
“<BR /> <BR />My Executive colleagues and members of the Finance and Personnel Committee have been advised on the detail of the statutory rule. The Committee indicated that it was content for applications to be received for the empty shops rates concession until 31 March 2016. Article 1 of the order sets out the citation and commencement. Article 2 provides for the amendment of article 31D of the Rates (Northern Ireland) Order 1977, substituting the new end date of 31 March 2016. <BR /> <BR />In conclusion, I look forward to Members' comments and commend the Rates (Temporary Rebate) (Amendment) Order (Northern Ireland) 2015 to the House.”
“Furthermore, it is a sensible measure in terms of cost. In all likelihood, the Executive would not have been getting any more revenue from these units through rates if they had continued to be empty. Therefore, it is effectively a cost-neutral policy. <BR /> <BR />Beyond that, after an initial period of reduced liability, these businesses will end up paying full rates after the difficult first year of trading is over, so it may even prove to bring in more money than it costs. Such has been the success of the scheme that similar schemes have now been introduced in all other parts of the United Kingdom. It was this Executive that led the way, having listened to and taken on board ideas from retailers and traders.”
“So far, it has seen 375 new businesses get up and running across Northern Ireland. Also, since the scheme was introduced in April 2012, data that was produced by the Northern Ireland Retail Consortium in February 2015 shows that the vacancy rate in Northern Ireland has reduced to 16·3%. Although the picture has improved slightly, I think that there is still a need for a scheme of this type. <BR /> <BR />The range of businesses that have benefited from the scheme include a fish market in Enniskillen, a children's clothes shop in Larne, a gift shop in Londonderry, a restaurant in Belfast city centre and a hotel in Ballycastle. They all created new jobs for local people. <BR /> <BR />I feel that this is a policy that makes a real difference to business start-ups, particularly in town centres and on arterial routes.”
“The current legislative provision under article 31D of the Rates (Northern Ireland) Order 1977, as inserted by the Rates (Amendment) Act (Northern Ireland) 2012, permits applications for this concession until 31 March 2015. The window for applications will close soon and, following the success of this scheme, I have made the decision to extend the application period to the end of the current Budget period. <BR /> <BR />Unfortunately, there remains a need to provide whatever assistance we can to counteract the many shop closures and the effect that this has had on the vitality of our towns and cities. The extension of this concession will allow Land and Property Services (LPS) to continue to receive applications for the scheme up until 31 March 2016. <BR /> <BR />This scheme has been a huge success.”
“The empty shops rates concession serves to provide a one-year concession which effectively allows 50% empty property relief to continue for one year when a qualifying property which has been empty for at least one year becomes occupied again.”
“Before I deal with the statutory rule, I will set out some background to the measure. The purpose of the legislation is to extend the empty shops rates concession. That was introduced in April 2012 and was subsequently extended for a further two years in April 2013. The concession was introduced as an amendment to the Rates Amendment Act (Northern Ireland) 2012. At that time, a package of measures was introduced to rebalance the rating system to assist ailing businesses and to improve the appearance of our town and city centres.”
“On that note, I commend to Members the 2015 Budget Bill.”
“Stephen Moutray's birthday as well. Happy birthday. Given the degree of self-indulgence that there has been at times during the debate this evening, can I indulge the House by wishing Lewis a happy ninth birthday?”
“I have endeavoured to respond to as many issues as possible at this late hour, but there will always be some that I cannot respond to due to time constraints, not least Mr Cree's long list of issues. I will come back to him on those. <BR /> <BR />I conclude by once again highlighting the critical importance of obtaining the Assembly's agreement to the 2015 Budget Bill. Not only will it sanction final public expenditure plans for this financial year but it will ensure that our Departments have legal authority to spend in the first few months of 2015-16. That is critical to safeguard the smooth functioning and delivery of essential public services. <BR /> <BR />In the time that this debate has happened I have moved from my wife's birthday to my eldest son's birthday —”
“As he talks about employment and what they are doing in the Irish Republic, he does not talk about unemployment there, which sits at 10·7%, a full five percentage points higher than it is here in Northern Ireland. I am happy, as are colleagues, to look at and learn from what the Irish Republic is doing to build its economy. Corporation tax is something that we have looked at incredibly closely, but we are not prepared to do everything that they did, because they have not got it right either. We are not going to take a lecture on Irish unity and how everything that they do is absolutely the right way to go about it. <BR /> <BR />In conclusion, I again thank Members for their contributions today — two days, actually.”
“I and others in the Executive and this party have said to the Irish Government that we think they were absolutely right to do what they did. It was very difficult and challenging. It was difficult on their people and their country but we are seeing, in the way that their economy is improving, that it was worth doing and was absolutely necessary. <BR /> <BR />However, as he talks about the economy and employment in the South, he fails to talk about unemployment in the Irish Republic. We have an unemployment rate of 5·7%, which is falling and has fallen for 25 consecutive months. It is still too high and we need to continue to work at it. We need to reduce it further. It is now sitting at the UK average.”
“There is also the radiotherapy unit at Altnagelvin, which some said that we should not have proceeded with. Those are practical, sensible manoeuvres on a way forward. North/South cooperation on health? Absolutely, we can do that. <BR /> <BR />What we do not want to see is a move in Northern Ireland to an Irish-style health service where people have to pay between €40 and €60 to visit a GP. When we look across the border at some of the things that they do well in health, let us not kid ourselves that we want to do everything that they do here in Northern Ireland. Equally, in respect of the economy and public spending, I very much admire what the Republic of Ireland Government have done to quickly get to grips with the problems that they face.”
“You were fortunate. It was a bit of an attempt, I think, to distract from his shafting his party leader about having no jobs in South Belfast. It was an argument, of course, against West Belfast, which, strangely enough, is his constituency. <BR /> <BR />Are we on these Benches content to learn from the Irish Republic? Yes. Are we content to cooperate with the Irish Republic on areas of shared mutual interest? Absolutely. However, doing everything that the Republic of Ireland does? Absolutely not. <BR /> <BR />He spelt out a couple of areas — health and the economy. On health, there are lots of things that we can do. I admire and support what my colleague the Health Minister is taking forward on congenital heart disease and the cooperation on that on a North/South basis.”
“<BR /> <BR />Making those sorts of reductions will be challenging and incredibly difficult, but we do not have the luxury of time that will allow us to sit around and look at things, very important issues though they are, and to let them get in the way of making the savings that Departments need to make. <BR /> <BR />I will move on to Alex Attwood's comments and the bit of a flight of fancy about Irish unity that he started with.”
“I am glad he acknowledges that we will save, or that the aim is to save, around half a billion pounds from this and that it is not, as others say, that we are borrowing and there is no benefit from it. There is an important benefit at a time when public spending will remain under pressure. <BR /> <BR />If we had the luxury of more time, some of the issues that the Member raises would obviously be factored in in a much greater way. We do not have that luxury, however. The next financial year starts in a matter of weeks. Civil Service Departments alone have indicated the need to reduce their headcount by around 2,400 posts in one year to live within their budgets for next year and to prepare themselves for the years thereafter.”
“Its objective is to reduce the pay bill. We have to do that in a sensitive way. We have to be mindful of the skills that we lose and those that we need to retain or build up. That work will continue on an ongoing basis. <BR /> <BR />When he attacks the voluntary exit scheme as he has done, he seems to do so from a position where he thinks that this is some sort of luxury and that we can choose not to do it. The First Minister eloquently set out how this was part of a broader economic reform and strategy that the Executive agreed to. However, we are not in the position to do anything other than to try as quickly as possible to reduce the pay bill in the public sector in Northern Ireland.”
“He is right, and I made this point to him in a written answer that I think he got today, in that the voluntary exit scheme is:”