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 />Secondly, the regulations will modify the provisions within the Finance Act 2014 to ensure that members with service in a new and existing pension scheme who retire with an ill-health pension do not face unintended tax consequences. Specifically, they ensure that parts of the ill-health pensions available to members who fall ill are not measured twice for annual allowance and lifetime allowance limits simply because of the transitional mechanics for payment of ill-health benefits. Put simply, the modifications ensure that the tax regime will apply in the way intended by government to those members who move into the new scheme and then retire because of illness.”
“In addition, modifications to the regulations that govern contracting out, specifically those that dictate the process a scheme must follow to be contracted out, are also contained in the regulations. For the new alpha pension scheme, the process has been simplified, ensuring that the new scheme and, therefore, its members continue to be contracted out of the additional state pension until the end of contracting out in April 2016. These regulations also include provisions to stop transitional members who take ill-health retirement being assessed twice against their annual allowance and lifetime allowance limits.”
“The effect of this is that members moving from their existing scheme to the new scheme also remain non-accruing members of the old scheme. Therefore, their old scheme service will only terminate when they leave the new scheme. That will ensure the following three things: that the benefits that they have accrued in their existing scheme are not revaluated as if they were deferred members; that their right to a cash equivalent transfer value or refund of contributions or to a cash transfer sum applies only when they leave the new scheme; and anti-franking provisions do not apply as if they were deferred members on 1 April 2015. <BR /> <BR />The proposed modifications mean that for those purposes, such members do not cease to be active members of their existing scheme until they also leave their new scheme.”
“The regulations before us today are simply the means to ensure that the scheme design for the alpha pension scheme, which was widely consulted upon with members and unions, works properly within the wider framework of pensions and tax law. It will make sure that members of the alpha pension scheme get the pensions that they expect and do not lose out as a result of any tension between scheme design and the wider law. <BR /> <BR />First, these regulations, which will modify the Pension Schemes (Northern Ireland) Act 1993, will ensure that transitional members will not be treated as deferred members.”
“That review considered what reforms should be introduced in order to have sustainable public-service pensions, given the increases in longevity and the associated costs. Those reforms were much needed to balance the legitimate concerns of taxpayers about the cost of public-service pensions with the need to ensure decent levels of retirement income for millions of people who have devoted their working lives to the service of the public. I am pleased to say that those reforms received the support of the Assembly during the legislative passage of the Act. <BR /> <BR />The reforms will apply to all public-service schemes in Northern Ireland, including the new 2015 alpha pension scheme. The design of the new 2015 alpha pension scheme has been settled, and the scheme will come into operation on 1 April 2015.”
“The regulations that are before us make consequential modifications to the Pension Schemes (Northern Ireland) Act 1993 and the Finance Act 2004 to ensure the 2015 alpha pension scheme, which was created under the Public Service Pensions Act (Northern Ireland) 2014, operates as intended. <BR /> <BR />The proposed regulations make minor technical modifications to the law governing the new 2015 alpha pension scheme. I remind Members that the Public Service Pensions Act (Northern Ireland) 2014 provides framework-enabling legislation for the reform of public-service pensions in Northern Ireland. The Act gives effect to the recommendations from the Independent Public Service Pensions Commission led by Lord Hutton.”
“It is a result of the Executive and the Assembly’s agreement to Budget 2011-15, the associated Main Estimates voted for in June 2014 and the changes agreed by the Executive during the June, October and January monitoring rounds for 2014-15. <BR /> <BR />As decision makers, we have spent much time debating, agreeing and revising the Budget plans. The process started back in 2010 — at times, it feels like the debate started back in 2010 — with debates on the 2011-15 Budget and concluded only last month with the Executive’s agreement of the January monitoring round. I commend the Assembly for the role that it has played in that process and I ask it to support the Bill.”
“He was right to point out that that is money that will come from somewhere else, but I think that, on balance, faced with having welfare reform without any changes or welfare reform with the changes that we were able to afford and deliver, we were right to go for the latter. That will come with a cost, but it is a cost and a price worth paying. <BR /> <BR />The Budget Bill brings to a close the 2014-15 financial year and makes provision for the early months of 2015-16. It also provides for expenditure on the new judiciary pension scheme. The Assembly has played a vital role in the formation of the Bill.”
“<BR /> <BR />I was not entirely sure whether Mr McCallister was for or against the package of welfare reform measures. There were so many votes last week that I cannot remember how he voted. There is a cost, and he asked where the money would come from. The Executive, in my view rightly, agreed a package of measures, and that comes with a cost. The Budget Bill gives effect to the Vote on Account for next year. In the first year, which is next year, the cost will be only — only, I say — £25 million. That is significantly less than the estimate of £70 million that we set aside a package for in the draft Budget, so we have saved money. There is some room in the future cost estimates. They have been quite liberal in their estimation, and I do not think that it will cost anywhere near as much as was estimated.”
“If he is trying to raise concerns on the basis that the SDLP was almost opposed to that, which is what I felt that he was doing, I remind him that, as with welfare reform, his party signed up to a package of reforms, to an agreed position on objectives and to reducing the size of the public sector. <BR /> <BR />I think that I have dealt with several of Mr McCallister's points. He raised the Port of Belfast issue, which I addressed. He also raised the cost of corporation tax, and I talked about the stepping and staging of costs and the potential savings from the voluntary exit scheme. We may be able to deal with what the comprehensive spending round meant for the protection of health and education in the Northern Ireland Budget. That may not be done easily, but we may have more room to do that.”
“I have made the point that there is an economic plan in place. That is the economic strategy that the Executive, including his party colleague, the Minister of the Environment, agreed. In fact, it was probably the previous Environment Minister, who is sitting behind the Member, who agreed that economic strategy when it went through the Executive. That is in place. The devolution of corporation tax will obviously add to and enhance that. <BR /> <BR />The Member is right to raise issues and concerns that I have also expressed. There will be an effect on our economy of having 20,000 fewer people in the public sector.”
“Again, this is where I get confused, although some might say that I am easily confused. The SDLP agreed that figure. On 19 December, the SDLP agreed a position, which is now being referred to as the Stormont Castle agreement. The position was agreed amongst ourselves that our target would be a reduction of 20,000 in the public sector's headcount. It was a position that was taken to the Secretary of State, who then took it to the Prime Minister and sold it to him. It helped to inform their response to our overall call for a financial package.”
“However, finding more money for protection in cash terms is an argument that the Education Minister, who still faces a cut, could make, as could the Justice Minister, who still has to deal with pressures and, indeed, a reduction. The Environment Minister, the Minister for Employment and Learning or whoever it might be could also make that argument. So that is where there needs to be a justification and a better argument. I am sure that the Minister is grateful that the Member is rounding in behind her and trying to help her, but it is an argument that is more for her to make than anybody else. It is certainly her job to do that. <BR /> <BR />Joe Byrne was our penultimate Member to speak, and he raised his concerns about the voluntary exit scheme. He called finding 20,000 fewer posts across the public sector a "tall order".”
“I am not saying that the Member should not have brought forward the long list of concerns. I have no reason to question the validity of the issues that the Department is putting forward. I am not saying this about the DCAL budget, but as we have seen in some Departments, between draft and final Budgets and even since then, to try to win an argument with the Executive or elsewhere, some Ministers will put out scare stories on what is almost the worst possible position. <BR /> <BR />It is only £10 million in a Budget of £12 billion, but it is still difficult to find. It also has to be justified. That is the point that I was trying to make. Finding £10 million would offer outright protection in cash terms to the Department of Culture, Arts and Leisure for next year.”
“Let me just finish. <BR /> <BR />That is the problem that I and anybody who might occupy my chair has. Looking at the Northern Ireland Budget at a global level, we find that we have to balance competing priorities, just as Ministers in their Departments have to balance competing priorities.”
“The Member said it was only £10 million, which is a lot of money, and to say "only £10 million" is perhaps accurate enough in the context of our overall Budget. Someone might say something like, "It is only £10 million. Can you not just give it to us?" The question to the Member, as it would be to anybody who says that, is this: where are you going to find that £10 million? That is the problem —”
“He talked about the DCAL budget, and I touched on some of these points already. Nelson McCausland also raised issues and concerns about that in his capacity as Committee Chair. It is not my job to do the Minister of Culture, Arts and Leisure's job, as attractive as that might be to all of us at times. She has to prioritise her budget as allocated to her. She has to balance competing priorities between libraries, museums, sport and the arts. That is very difficult to do on a budget that was already very small and that has been reduced by 8·2%. The cut that the Department is facing is lower than that that was initially applied to it, because we as an Executive accepted that making a 15% reduction to that budget would have proportionately decimated it more than others.”
“At least he had the courtesy and good grace to acknowledge the pressure applied by the schools sector to the Minister and myself. You can certainly congratulate them for the lobbying that they did. One organisation that you cannot congratulate for the £63 million increase to the education budget is the Ulster Unionist Party, which voted against the £63 million allocation to education in the Budget. <BR /> <BR />Mr Basil McCrea started by saying, and I am paraphrasing, that he had been at livelier wakes. I think that was the import of what he said.”
“Mr Danny Kinahan congratulated the education sector for securing a boost to the education budget. However, on a tweet that he put out on 19 January, he said:”
“That is Mr Allister all over: no positive alternative offered. <BR /> <BR />Mr Danny Kinahan congratulated — he was here briefly —”
“— and an end to concessionary fares. Any of us involved in the talks before Christmas know fine well that the Government in Westminster would love to get their hands on the things that we are doing in having no water charges, the lowest household taxes in the whole of the UK and the concessionary fares scheme. They would want to bring to an end industrial de-rating, which has kept £300 million in the pockets of local businesses. There is also the small business rate relief scheme that is helping local businesses to the tune of £20 million per year. Those would all go if there was a return to direct rule. <BR /> <BR />In questioning the values and ethos of this Budget and this Administration, Mr Allister revealed more about his values and ethos. Not once in his diatribe did he offer a single positive alternative to this Budget — not once.”
“<BR /> <BR />It says a lot about the Member's values and ethos when he wants a return to direct rule and talks about the economy and trying to help out the little guy, when he would see, as a result of a return to direct rule, hugely increased household taxes, an almost immediate introduction of water charges — £500 bills landing on the doormats of everybody in Northern Ireland courtesy of Mr Allister — increased rates bills —”
“<BR /> <BR />It says something about Mr Allister's values and ethos that he would not have borrowed to rescue the members of the Presbyterian Mutual Society (PMS). Borrowing is how the rescue package for the PMS was funded, so it says a lot about the Member's values and ethos when he rails against borrowing, why we should not be borrowing and why we should not have borrowed, when he would not have invested in much-needed infrastructure projects or in any PMS rescue package.”
“There would have been no amelioration of the bedroom tax had it not been for devolution and the existence of this place, so what are the Member's values and ethos when he wants to see a return to direct rule? <BR /> <BR />He rails against borrowing, and he has been told in this place before about the borrowing powers that we have, how they are the envy of other Administrations and how other Administrations and devolved regions of the United Kingdom want the borrowing powers and flexibilities that we have secured. It begs the question about Mr Allister's values when he would not have borrowed in difficult times to invest in infrastructure projects, the new roads, hospitals and schools that, otherwise, we could not have afforded.”
“— welfare reform without any changes, without an end to the bedroom tax that Mr Allister said in the Chamber almost three weeks ago:”
“A return to Dublin rule is what the Member is advocating as the natural outworking of the policy that he is pursuing. <BR /> <BR />You would have the Conservative Party with the Liberal Democrats in power implementing —”
“Mr Allister, there is nothing to explain when your position is wanting to see the collapse of this place and the inevitable return to direct rule, which you once described as a return to Dublin rule.”
“However, in wanting and seeking a return to direct rule and an end to devolution, we would not have a package of measures to ameliorate the bedroom tax or any other part of welfare reform. The Member sits and shakes his head but that is the truth. If there was a Conservative —”
“The system of government that we have, imperfect as it is, is far, far better than a return to direct rule and an end to devolution, which the Member advocates. In terms of helping vulnerable people in Northern Ireland, we would have full-blown, unadulterated welfare reform if we returned to direct rule. On 27 January in this House, after railing against the package of reforms and the package of measures to mitigate welfare reform today in the Chamber, Mr Allister said:”
“I would be the first to accept and agree that this system of government is far from perfect, but it is a hell of a lot better than the system of government —”
“Absolutely, Mr Robinson. He loves being here. He absolutely loves it here. He wants to see a return to direct rule. That is the outworkings of the policy that he would have us pursue. He wants to see an end to devolution and an end to Stormont.”
“It is absolutely true. The Member wants a return to direct rule. That is the outworkings of the policy he has —”
“His value, of course, and his sole stated purpose, is to see an end to this place. He wants to see a return to direct rule. That is the value and the ethos that he has.”
“That reflects the value that this Executive place on education and on schools, a value not reflected by Mr Allister's vote against the Budget. <BR /> <BR />This is a Budget that seeks to underpin economic growth. There is a 10% increase for the DETI budget to ensure its continued impressive record in attracting investment into Northern Ireland and in creating jobs in Northern Ireland. That is a value that this Budget underpins, a value, again, not reflected by Mr Allister in his vote against this Budget. It is a Budget that also underpins economic development and growth by boosting the expenditure in the Department for Employment and Learning from its draft Budget allocation by £35 million, an allocation that Mr Allister voted against. <BR /> <BR />I do not need to ask too much about what Mr Allister's values are.”
“<BR /> <BR />Mr Allister made the point that the values and ethos of a Government can be revealed by its Budget. He asked what the Executive value and could not find what they value through this Budget. This Budget is based on many values and principles, including support for key public services. That is reflected in an allocation of an additional £204 million to the Health Department, and which reflects the value that we place on the health service, which the Member voted against. It also includes a £60 million boost, over and above the draft Budget allocation, for the Department of Education, which has been topped up by the Minister of Education with a further reallocation from within his budget of around £17 million or £18 million, so that £80 million is going into the schools budget.”
“I share Mr Clarke's concern and that of his Committee about the poor estimating of the cost of the Coleraine to Londonderry line upgrade. <BR /> <BR />Mr Flanagan raised the usual issues that he does around investment, or the lack of it as he sees it, in Fermanagh. I note that today, the MP for Fermanagh and South Tyrone issued a statement calling for more investment in the constituency. It is interesting that, in making that call, never once has the MP for Fermanagh and South Tyrone asked me or the economy Minister for a meeting to look at investment, or the lack of it as she would see it, in that area. Such negativity from Sinn Féin on this issue does not make the job of the economy Minister in attracting investment from anywhere any easier.”
“They are not in my Department, so they are an easy target for cuts." That should not be the way, particularly when those organisations are often delivering services in a much more efficient and effective way than central Government could do. <BR /> <BR />Trevor Clarke raised concerns about the management of the DRD budget, which concerns I share. It is regrettable that that Department is heading for an unacceptable overspend in this financial year, because the Minister failed to plan properly for the Port of Belfast receipt not being obtained. He failed to plan for that, and spending on the basis of having money that you do not have is not the way to manage your budget, particularly in difficult financial circumstances.”
“Therefore I say to Anna Lo: yes, there is merit in arguing for what the Department of the Environment does to protect the environment, but there is also a need to make the argument about what investing in the environment means for our economy. <BR /> <BR />Ms Lo highlighted the concerns of the voluntary and NGO sectors in environment about Budget cuts. I say to the Minister of the Environment what I would say to any Minister: the voluntary, community or third sector should not be seen as an easy target for cuts in difficult financial times. There are some Departments and some Ministers who think that the third sector is an easy target. They think that they can go after them, because, "I do not have to worry about them. I am not responsible to them. They do not work for me.”
“<BR /> <BR />In an environment where we have less money, the argument that will find more favour, and therefore perhaps more pounds, is the one that identifies the contribution to the economy through investment in environment or in culture. Mr Bradley on the SDLP Benches raised the issue of heritage-led development, something that I have backed in previous Budgets and am backing again in next year's. One of the reasons for my taking a personal interest in that area is the work of the Northern Ireland Environment Agency (NIEA) to present the argument for investment in heritage-led development from the perspective of the benefit to the economy and the jobs that it creates.”
“I have been encouraging privately, and I encourage her to take up with environmental NGOs the need to alter slightly the way in which they present their debate. It is an argument that is relevant to Mr McCrea's point about culture, arts and leisure. If the Executive's number one priority is, as it has been for nearly 10 years, to grow the economy, virtually all expenditure, particularly in those areas that see themselves as a bit Cinderella-like, needs to be argued for first and foremost through an economic prism. That does not mean that there is no merit in protecting the environment or in having a good arts community and cultural infrastructure.”
“One of the principal reasons for such large changes to the Budget in-year was the failure to move forward with the A5, the Minister responsible for that being, of course, her party colleague, Danny Kennedy. <BR /> <BR />She raised several issues to do with health, including the pressures on health, which are well recognised. She did not recognise the fact that £500 million of efficiencies had been delivered since DUP Ministers took control of the Department of Health or, indeed, that there has been a £200 million plus allocation to the Department of Health in next year's Budget, which reflects that 46% of our expenditure goes on health. <BR /> <BR />I now turn to comments made by Anna Lo. Ms Lo made a very good case for investment in the environment in Northern Ireland.”
“Two point three percent of the 4·4% in-year reduction was a result of the need to find money for welfare reform penalties. The decisions that the Executive had taken, and for which finances had to be found, included the historical institutional abuse inquiry and local government reform. I am sure that she did not intend to say, although it sounded like it, that the UUP opposed funding for those things. I know that they did not want to fund the social investment fund a couple of weeks ago, and I hope that they are not now saying the same of the historical institutional abuse inquiry and, indeed, local government reform. <BR /> <BR />She asked why there were so many fluctuations in-year and whether there had been so many redistributions and reduced requirements in any other year. Mr Girvan made the point during the debate.”
“She is wrong, though, in saying that many of the problems in-year were the result, not of welfare reform, but of other pressures that the Executive should have known about.”
“<BR /> <BR />Jo-Anne Dobson talked about the in-year financial difficulties. I give Mrs Dobson credit for being one of the only Members who stuck to talking about the Bill. She spoke more about in-year financial issues as opposed to next year's issues and was almost a lone voice in that regard. She rightly started off by placing blame for the in-year financial difficulties where it should lie; namely, that we had to find £87 million in year to pay penalties because of our failure to move forward on welfare reform. Whilst we are grateful that there has been a resolution on welfare reform, we should not forget that it has come at the cost of £100 million being lost to date to the Executive in their ability to invest in essential public services and to help many people who are on welfare.”
“<BR /> <BR />There will be a consultation on the development of the social innovation fund. That will launch very soon. It will use the dormant accounts money initially and will be focused on loans rather than grants so that the £5 million that is there does not disappear very quickly, as would be the case with grants, but is there, gets paid back and is there for others to benefit from in the future. Those others will be social enterprises, charities, community organisations and faith-based organisations. It also has the potential to draw in additional investment. The Member has, in correspondence to me and in the Chamber today, drawn my attention to examples from other jurisdictions, and I am happy to follow those up with him and, indeed, with the organisations concerned.”
“We will absolutely work with EIB on an ongoing basis to, if possible, draw in more funds from it, but I see the potential of other international investors who we have started conversations with already. I do not want to disclose who they are for obvious reasons, but there has been an initial positive response from those organisations and institutions that would operate in that sort of space. I intend to have officials take that further forward and will personally intervene as and when required to try to make that happen. We should not be satisfied with a £1 billion fund; we should be looking to grow that to £2 billion, £3 billion and beyond. The impact that that will have on infrastructure in Northern Ireland will clearly be immeasurably better the bigger the scheme is.”
“At Question Time today, I pointed out, in response to questions from Ms Sugden and Mr Humphrey, that I see the potential to expand the number of investors who are putting money into the investment fund. The £40 million that we allocated in the draft Budget can almost be seen as seed capital. That is our initial contribution, and I want that initial contribution to grow to at least £100 million. We hope and expect to draw in another £1 billion from the European Investment Bank, and the feasibility study that is being carried out on our behalf by Deloitte and working with the EIB will draw out the sectors that that may be invested in. I do not see that as the end: £1 billion is impressive enough from a standing start, but it is not the end as far as I am concerned.”
“That is good, solid evidence and is why Michael Noonan was then able to stand up and say, "I am keeping this cut in place indefinitely". That evidence almost makes the case for us in Northern Ireland. Even though you cannot have a differential rate within a member state, because we have the land border — it is the same issue with corporation tax — I think that there is a compelling case for Treasury Ministers to look at it. That evidence from the South shows that it is not simply a cut and that they will lose revenue but that they can make some money back through increased PAYE and National Insurance contributions. <BR /> <BR />I will turn to Mr Ó Muilleoir's comments. He prefaced them by saying that he wanted to be helpful, and I think that he was. He made comments around the investment fund and the social innovation fund.”
“A great campaign has been led by organisations such as Pubs of Ulster and other groups from the Northern Ireland hospitality industry that is now starting to spread across the UK. They took that campaign to Westminster as recently as last week. I wrote to David Gauke, who is the Financial Secretary to the Treasury, at the start of the month asking him again to look at the issue. There is one more Budget left before the election, and it is an opportunity to do something on it. It would not be specifically for Northern Ireland but would have to be for the whole UK. In writing to Mr Gauke, I cited the very good evidence from the Irish experience. Since 2001, 30,000 jobs have been created in the tourism sector, and it has produced a net benefit to the Irish Exchequer of €165 million.”
“I am not batting for the Treasury, but, on the point about information and transparency, particularly around tax take, I do not think that it was designed to produce regional figures. I think that the Treasury is grappling with the impact of devolution as well and, indeed, the demands in English regions for more transparency around these things. It is now starting to produce better estimates of tax take across the regions. We are using that work to inform our work. As it develops better transparency, we will all be the beneficiaries. <BR /> <BR />I do not think that the Member was in earlier for Question Time, when Mr Hilditch asked me about the VAT rate for the hospitality sector.”