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.”
The complete record
Every one of 3,625 lines we hold for Simon Hamilton, in date order, each linked to its source. Free to read, in full, without an account. Page 59 of 73.
“This monitoring round also provides the last opportunity for adjustments to the schools and further education end-year flexibility (EYF) schemes. On the schools EYF scheme, I confirm that the Department of Education has not declared any adjustment to the £5 million resource DEL drawn down under the terms of this scheme back in the June monitoring round. As a consequence, the schools EYF stock that is carried into 2015-16 will be £41·7 million. There has been no drawdown in 2014-15 under the restricted end-year flexibility scheme for further education (FE) colleges. In addition, the Department for Employment and Learning has advised that, as part of the current monitoring round, it plans to add £8·3 million to that stock. As a consequence, the FE college EYF stock carried forward into 2015-16 will be £14·3 million.”
“The impact of those changes was to reduce the starting overcommitment for the January monitoring round to £4·4 million of resource DEL and £9·7 million of capital DEL. Departments declared reduced requirements in this monitoring round of £30·5 million resource DEL and £40·4 million capital DEL. Full details are included in the tables provided.”
“I have also recently been notified that the Executive will receive a Barnett consequential that amounts to £10·9 million as a result of the Chancellor of the Exchequer’s announcement of a freeze to council tax in England in 2014-15. The latest regional rate forecast indicated that income this year is expected to be £0·5 million less than was anticipated at the October monitoring round, creating a pressure to be addressed in this round. <BR /> <BR />There have also been a number of small easements in respect of RRI borrowing interest payments, EU match funding, statutory salaries and cash management charges, amounting to £ 5·1 million resource DEL and £2·4 million capital DEL.”
“We exited the October monitoring round with a £24·7 million resource DEL and a £12·8 million capital DEL overcommitment, which meant that the risk of us breaching our Budget was still very real. <BR /> <BR />A number of adjustments have impacted upon our financial position. A Budget exchange scheme adjustment in 2014-15, based on the recently determined 2013-14 final out-turn position, showed an additional underspend in 2013-14 of £4·1 million resource DEL, thereby providing additional funding in 2014-15. On capital DEL, the underspend was £0·1 million less, creating a small pressure. <BR /> <BR />The Chancellor’s autumn statement provided Barnett consequentials for 2014-15 of £0·8 million of resource DEL and £0·8 million of capital DEL.”
“The flexibilities agreed in the Stormont House Agreement to utilise up to £200 million of RRI borrowing to pay for a voluntary exit scheme in 2015-16 will greatly assist the Executive in their aims and, by 2018-19, will yield an estimated £500 million annual saving to our Budget after the available £700 million has been invested. <BR /> <BR />The Executive have also agreed the January monitoring round for 2014-15. The Assembly knows only too well how demanding this year has been for our Budget. In-year resource DEL reductions of 4·4% for all Departments except Health and Education were needed, along with a call on the reserve of £100 million, for us to try to live within our means.”
“<BR /> <BR />As indicated at the draft Budget stage, the Executive will shortly adopt a comprehensive programme of public sector reform and restructuring, which will encompass a wide range of strategies. The Executive continue to consider the detail of that reform and restructuring plan, but it builds upon the five Executive parties' submission to Her Majesty's Government during the recent Stormont House negotiations, which outlined our agreement to reduce the public sector workforce in Northern Ireland by 20,000 posts over the next four years through a combination of measures, such as a voluntary exit scheme and recruitment freezes.”
“At the time of the draft Budget, I warned that pressure on public expenditure would inevitably result in a change to the shape and nature of our public sector. That remains true. Despite our ability as an Executive to allocate, in this final Budget, an additional £150 million of funding over and above the allocations in the draft Budget, with a resultant drop in resource spending of only £60 million next year, it would be a misjudgement to believe that we can take our foot off the pedal of reform. Having a better Budget than we might have dared to imagine six months ago does not mean that difficult decisions can be avoided. Reform and restructuring remain as relevant now as they did before.”
“<BR /> <BR />I want to particularly highlight the allocation of £10 million for Together: Building a United Community. That funding will be held centrally and will be allocated as part of the June monitoring round to projects that will help the Executive to deliver on their commitment to improving community relations and building a united and shared society. <BR /> <BR />Whilst it is undoubtedly the case that our Budget is in better shape because of the financial package associated with the Stormont House Agreement, agreement between the Executive parties on welfare reform, and Barnett consequentials flowing from the Chancellor’s autumn statement, that does not mean that the challenges facing public spending in Northern Ireland have evaporated.”
“These include £2 million to the Department of Agriculture and Rural Development for its Going for Growth strategy and its HQ relocation; £2 million to the Department of Culture, Arts and Leisure to deal with pressures relating to NI Screen, Cinemagic, the Public Record Office of Northern Ireland (PRONI) and the production of the outline business case for the subregional stadia; £5 million for the Department for Regional Development for Translink town bus services and road repair programmes; £1·9 million to the Department of the Environment for the local government derating grant; £3·1 million for the Department for Social Development to reinstate reductions applied to the social fund and to fund the National Citizen Service; and £1·5 million to OFMDFM for victims’ services.”
“It is my hope that this fund will be able to utilise £5 million of funding from dormant accounts and, much like the investment fund, be constructed in such a way that it will be able to draw in additional finance that could see a total of £10 million in the fund. <BR /> <BR />Other allocations have been made to Departments to meet a range of pressures.”
“Many of our charities, community organisations and social enterprises play a crucial role in working with government to deliver key services, particularly to the most marginalised and hard to reach in our society. <BR /> <BR />I am sure we are all in agreement in wanting to see the third sector increase its activity. To that end, it is my intention to bring forward to the Executive a paper proposing the creation of a social innovation fund that will allow social enterprises, charities, faith-based organisations and community groups to access loan financing that will enable them to expand the good work that they do.”
“This is made up of £20 million in recognition of the work our universities and colleges do in building a skilled workforce, and £13·2 million of successful change fund bids, including joint work with the Department of Education to provide maths and English essential skills for 14- to 16-year-olds, the aforementioned collaborative skills development with DETI, the United Youth programme pilot, apprenticeships and youth training. <BR /> <BR />As public spending remains under pressure for the foreseeable future, it will be important that the Executive pursue and seek to realise innovative funding solutions that help to meet our objectives. The House will know of my long-standing support for the third sector in Northern Ireland.”
“DETI receives £3 million, which goes to Invest NI, as well as £7·4 million in change fund allocations, including one for collaborative skills development that the Department will undertake alongside the Department for Employment and Learning. <BR /> <BR />I made it clear in the House that the departmental allocation in the draft Budget that satisfied me least was that to the Department for Employment and Learning. The final Budget sees DEL receiving £33·2 million in additional funding.”
“<BR /> <BR />I am pleased that the Executive have endorsed the allocation of a further £28·8 million of financial transactions capital to the Northern Ireland investment fund, meaning that £40·9 million will be in the fund next year. <BR /> <BR />The Department of Enterprise, Trade and Investment was one of only two Departments to experience an increase in the draft Budget for 2015-16. After discussions with my colleague the economy Minister, I am convinced of the need for a further uplift in expenditure in her Department so that the impressive work that she and Invest Northern Ireland have done to attract so much investment to Northern Ireland can continue.”
“It is critical, therefore, that the Executive continue to concentrate investments on areas of expenditure that assist and support our economy as it recovers. <BR /> <BR />I indicated in the draft Budget that close to £20 million of support to small businesses would be provided through the continuation of the small business rate relief scheme. Members will recall that, in my draft Budget statement, I announced my intention to create a Northern Ireland investment fund. This fund would be primed with financial transactions capital and would seek to work with the European Investment Bank to leverage in additional finance that could be targeted towards much-needed investment in infrastructure, such as energy efficiency, renewables and social housing.”
“I am pleased to say that the Executive have agreed to a further £20 million going to the Department of Justice, which is especially to meet pressures on the PSNI. This will assist the Chief Constable in taking forward recruitment plans next year and ensure that the impact of reductions on policing and public safety is lessened. <BR /> <BR />The Executive's number one priority remains growing a sustainable economy. That requires us to devote resources, insofaras we can within the constraints we face, to investment in economic infrastructure, skills development and job creation. <BR /> <BR />The Executive's economic strategy is working: the economy as a whole is growing; unemployment is falling; and confidence is creeping back.”
“This reflects not only the Executive's commitment to a high-quality education system that contributes to the success of our economy and society, but is a recognition of responses to our public consultation. I trust that this sizeable, additional allocation will permit much of the pressures facing classrooms across Northern Ireland to be alleviated. The Departments of Health and Education will account for 65% of all resource expenditure in Northern Ireland next year. <BR /> <BR />One other significant allocation that I wish to highlight relates to the Department of Justice. During my bilaterals with Departments, I discussed with the Chief Constable the pressures facing the Police Service of Northern Ireland.”
“The flexibilities previously granted to DHSSPS in monitoring rounds will continue for 2015-16, subject to the outcome of the assessments undertaken. <BR /> <BR />The Department of Education receives £63 million — as well as a change fund allocation of £1·6 million for nurture units — in extra funding on top of that already allocated in the draft Budget.”
“This additional £204 million reflects the Executive’s determination to protect front-line services in the health sector and sees a final Budget outcome for health that is some 3·4% higher than last year. <BR /> <BR />The Executive are also committed to assessing the performance of DHSSPS in the short and longer term. As an initial step, my Department will provide an assessment of the performance of DHSSPS as part of its monitoring round scrutiny over 2015-16 to ensure that its plans for remaining within budget are robust and attainable. In the longer term, the intention is to progress the health sector review through a case study to be undertaken as part of the ongoing OECD review of public-sector reform in Northern Ireland.”
“In spite of the dual pressures of less public spending than we would like and the growing demands of our people, we ought to be proud of the many achievements Departments have made. Those achievements can only be maintained and built on if the Executive prioritises key services in their Budget allocations. That, Mr Deputy Speaker, is what we have done. <BR /> <BR />No clearer can that be seen than in our commitment to health and education. I can confirm the £200 million increase in spending for the Department of Health, Social Services and Public Safety originally outlined in the draft Budget. Health will also receive a further £4 million from the change fund for five projects, including the all-island congenital cardiac service model.”
“As a result, the adjustments made to the non-ministerial Departments will have no impact on the levels of funding available to other Departments. It will, however, ensure that all minor bodies are making a contribution to reducing public expenditure. <BR /> <BR />The central pillars in constructing this Budget for 2015-16 were the protection of key front-line health and education services, investments that underpin economic growth in Northern Ireland and putting in place the foundations for the reform and restructuring of our public sector. These important priorities are reflected in the various allocations agreed by the Executive. The Programme for Government commits us to:”
“I do not believe that these institutions are run so efficiently that they cannot play some part in keeping budgets to a minimal level. Therefore, the Executive have agreed to reduce the Northern Ireland Audit Office, Assembly Ombudsman and the Northern Ireland Assembly Commission’s budgets by 5%. <BR /> <BR />In the interests of fairness, it is only right that minor Departments that had faced significant reductions in the draft Budget should have their reductions limited to a similar level. Therefore, the funding released by applying a relatively small reduction to the previously protected bodies has been returned to the NI Utility Regulator, the Food Standards Agency and the Public Prosecution Service.”
“<BR /> <BR />Before moving to the further allocations agreed by the Executive, I want to say something about the Assembly Ombudsman, the Northern Ireland Audit Office and the Northern Ireland Assembly, all of which were protected from reductions at draft Budget stage. At that time it was made clear that, in times when the broad public sector was under such pressure, there would be a clear expectation from the Executive and the general public that these institutions would also provide some degree of savings. <BR /> <BR />Unfortunately, with the exception of the ombudsman, who at least tried to identify some savings, that has not been the case, and I and Executive colleagues have been dismayed by the attitude taken by these bodies.”
“As a result of all the adjustments I have just detailed, the funding available for allocation at final Budget stage amounts to £73·7 million resource DEL and £28·8 million ring-fenced financial transactions capital. There is a small overcommitment of £2·3 million in conventional capital DEL to be managed in-year. <BR /> <BR />The draft Budget also set aside £30 million for an Executive change fund. The aim of the fund was to encourage Departments to bid for projects that were reform-orientated and innovative, focused on early intervention and prevention or involved cross-departmental collaboration. The fund was oversubscribed by five times its value, illustrating its value and the commitment of Ministers to the principles of reform. Bids were assessed and scored, and the 19 successful ones are outlined in the attached tables.”
“<BR /> <BR />In the draft Budget, £10·7 million of resource DEL and £8 million of capital DEL was held centrally for match funding for the EU Peace programme and INTERREG. The majority of that funding has been allocated to the relevant Departments. There has been some delay on the final agreement for some projects. Therefore, a residual amount has been held centrally to allocate as part of the in-year monitoring process. <BR /> <BR />Finally, DSD has requested the reclassification of £2·7 million of expenditure from resource DEL to capital DEL as a consequence of expenditure being incorrectly classified in its resource DEL baseline.”
“Those costs have been finalised after work between my Department and the Government Actuary's Department (GAD), resulting in a reduction in the pressure of £10·7 million. <BR /> <BR />Some capital reduced requirements were identified during the consultation period, and those have been factored into the final Budget position. They include some £5·7 million of increased capital receipts, £27·5 million of financial transactions capital from DETI and £46 million of capital DEL from DCAL for the regional stadia. In view of the circumstances in which the stadia funding was surrendered, I can confirm that I will support any in-year emerging capital infrastructure pressures relating to stadia emanating from DCAL in the 2015-16 monitoring round process.”
“<BR /> <BR />The ring-fenced funding included in the Stormont House Agreement for bodies dealing with the past and for shared and integrated education projects is being held centrally, as proposed expenditure will require the agreement of the Executive and the UK Government. Allocations will then be made through the in-year monitoring process. Further additional funding is available to the Executive due to revised assumptions and updated forecasts. That includes an increase of £1·3 million in regional rates income and a £5·9 million reduction in RRI interest repayments. In the draft Budget, the Executive set aside £133·2 million to cover increased costs arising from the revaluation of public-sector pension schemes.”
“As Departments will have already commenced planning on the basis of the draft Budget capital position, the Executive have agreed not to alter that fundamentally in order to repay the full £114 million from capital. However, a £57 million capital to resource switch has been granted as part of the final Budget on the assumption that welfare reform will be introduced halfway through next year. That position may be further refined in-year. The Stormont House Agreement also confirmed that the £100 million reserve claim in 2014-15 may be repaid from capital receipts. That reflects the draft Budget position.”
“<BR /> <BR />The draft Budget set aside £70 million to fund a package of measures to mitigate the worst impacts of welfare reform. An assessment of the requirements for next year has been made, and, based on the assumption that welfare reform will be implemented halfway through 2015-16, it is anticipated that £26·9 million will be required. That funding will be transferred to DSD in June monitoring to be held in a ring-fenced manner for the various welfare reform initiatives. The revised costing of welfare reform measures therefore provides £43·1 million of additional funding for allocation in the final Budget. <BR /> <BR />Flexibility was provided to fund the £114 million from the capital budget.”
“Those include up to £50 million additional capital DEL for new shared and integrated education projects; flexibility to use £200 million of reinvestment and reform initiative (RRI) borrowing for a voluntary exit scheme; an additional £100 million of borrowing for capital projects; and up to £30 million of resource DEL for the funding of bodies to deal with the past. <BR /> <BR />Her Majesty's Government are still intent on enforcing the payment of £114 million for the non-implementation of welfare reform. That amount will be deducted from our Budget at the beginning of the new financial year. If the implementation of welfare reform is completed, as expected, during 2015-16, the relevant portion of the £114 million reduction will be returned to the Executive in-year.”
“Members will recall that the draft Budget contained no surplus funding to be distributed at the final Budget stage, aside from the £30 million change fund. However, a number of factors, large and small, have combined to result in a much-improved budgetary position. The Chancellor’s autumn statement resulted in the Executive receiving £67 million more in resource DEL, £5·7 million in capital DEL and £1·3 million of financial transactions capital for next year. <BR /> <BR />The Stormont House Agreement provides the Executive with additional funding and flexibilities in 2015-16.”
“The years ahead look equally challenging, with Office for Budget Responsibility (OBR) projections suggesting that Northern Ireland could see its resource departmental expenditure limit (DEL) fall by a further 13% in real terms by the end of the decade. <BR /> <BR />Such circumstances would challenge the ability of any Government to agree a Budget. Never before has Northern Ireland had to contend with budgetary pressures of this magnitude. That we have been able to agree a Budget for next year, and have done so well in advance of the end of January, is an achievement many thought beyond our reach. <BR /> <BR />Our draft Budget illustrated the difficulty of our task. Over £200 million in reductions were required across Departments to meet many of the pressures facing the Executive.”
“I trust that the willingness to compromise and the determination to succeed and to meet deadlines that have made the Budget possible will set the tone when other aspects of the Stormont House Agreement come to be implemented. <BR /> <BR />The challenging financial circumstances that the Executive had to contend with this year and next are well documented. Our overall spending power has fallen by over £1 billion since 2010. Next year’s resource budget has been reduced by 1·6% in real terms, meaning that our ability to pay for the day-to-day running of public services like schools and hospitals has been curtailed when demand for those and other services remains high.”
“Mr Deputy Speaker, I am pleased to be able to present to the House the Executive’s agreed Budget for 2015-16 and the result of the 2014-15 January monitoring round. <BR /> <BR />On 23 December 2014, the Stormont House Agreement was published, paving a new way forward for the Executive and a fresh start for politics in Northern Ireland. Its success or failure will depend on the faithful implementation of what was agreed by the parties across a range of issues. <BR /> <BR />Last Thursday, the Executive passed their first big test of this new era. This Budget, and the agreement reached on welfare reform, puts the Executive’s finances back on a long-term and sustainable basis; it also paves the way for allowing Northern Ireland to set its own rate of corporation tax.”
“Legislative consent on this matter will ensure uniformity in the application of the baseline requirement for the recovery of exit payments to those in the high-earning category and provide an assurance to the taxpayer that exit payment arrangements across the sector must be fair and demonstrate value for money. <BR /> <BR />I invite Members to support the motion, and I commend it to the House.”
“So, if we are looking to go beyond what is in the Bill and restrict it a little bit more, we need to bear in mind that we do not want to restrict it so much that we cannot bring talented or useful individuals back into the public sector at a later date into a different type of post or even into a post in the same sector, where they may be very useful to the public. <BR /> <BR />I thank all Members for their comments. On balance, despite the issues raised, I remain of the view that the Assembly should support these measures now for the reasons that I have set out. Over time, as I have already made clear, the efficacy of those measures can be evaluated and further changes considered. <BR /> <BR />In conclusion, the motion addresses a targeted provision in the Small Business, Enterprise and Employment Bill.”
“<BR /> <BR />The Deputy Chair raised the specific issue of what a short period of time will be. That will be set out in regulations. I anticipate that that will be 12 months. There is a more general point about whether it should be restricted to a period of time or should be almost for ever and a day. <BR /> <BR />Whilst that is worth considering, as is the point about the same sector, I think that it has to be borne in mind whether we want to have a disincentive for people to come back in to the public sector at a particular time. There may be individuals who exit for whatever reason, and it might be useful to bring them back because of the skills and experience that they have and could bring to an area of the public sector in the future.”
“We would not have had the time to do and get our own piece of primary legislation through. As I said, we can, of course, amend it to suit Northern Ireland's circumstances if that becomes an issue. <BR /> <BR />The issue of whether it should be restricted to the same sector and not cover a range of sectors or all sectors was also raised. That is a relevant point that is worth examining on the basis of experience. The origins of this at Westminster are more to do with people leapfrogging and jumping from part of one sector, where they take a payment to get out of that sector, and moving to another high-paying job elsewhere within that sector. I think that that problem manifested itself most primarily within the health sector in GB, and that is perhaps why it is restricted to the one sector.”
“<BR /> <BR />As I outlined in my opening contribution, and to respond to several points that the Deputy Chair made, there may be an argument to amend these provisions in the future to suit the Northern Ireland set of circumstances, especially in the light of our upcoming voluntary exit scheme and the experience that that will provide. <BR /> <BR />There were three broad areas not of concern — that may be too strong a word — but of interest. One was on the £100,000 threshold. I will point out that this is an LCM that will be attached to the Bill going through Westminster, and £100,000 is a salary level that is probably more appropriate over there and that probably covers a lot more people than those in the Northern Ireland public sector. However, I still think that it is right thing for us to do this now.”
“I am very pleased to note various Members' contributions to this debate on the Small Business, Enterprise and Employment Bill, which deals with public-sector exit payments. <BR /> <BR />The Deputy Chair was very clear, and whilst I understand and accept his point about whether the Committee had sufficient time to consider this in appropriate depth, I think there is no disagreement across the House that the principle behind this LCM is right and that this is the right thing to do. As Mr Girvan pointed out, whilst it is the right thing to do, it is for a small number of people in the Northern Ireland context.”
“It is already a feature of the Civil Service compensation arrangements that payments for each of the categories "voluntary exit", "voluntary redundancy" and "compulsory redundancy" must be returned in full, where an individual returns within 28 days, and repaid pro rata, where an individual chooses to return to the Civil Service within six months. <BR /> <BR />In short, the motion is a measured and a crucial vehicle that will prevent the wasteful use of vital public funds in lining the pockets of high-earning public servants who, as a consequence of re-employment to the sector following receipt of an exit payment, will, of course, no longer require that financial support.”
“In terms of the overall rationale, to ensure fairness and value for money, it is entirely appropriate that compulsory redundancy payments made to compensate those who meet the high-earner threshold of £100,000 for loss of expected earnings should be within the scope of the policy where earnings are restored within a short period. I also point out that the policy will apply in the case of voluntary exit payments, where a high earner decides to apply for a voluntary exit scheme offered by a public service employer. In the case of those voluntary exits, there is absolutely no compulsion to apply. In those circumstances, it is wholly reasonable to expect that entitlement to retain a cash payment for giving up a high-earning position should be wholly or partially forfeited if they return to a similar position within a 12-month period.”
“As Members know all too well, given the financial pressures that we face, it is only when measures such as redeployment fail to deliver the required reduction in the pay bill and staffing levels that such schemes are implemented. <BR /> <BR />In its report, the Committee also requested clarification of the rationale for the inclusion of compulsory redundancy payments within the scope of this recovery policy. The purpose of exit payments made for loss of employment is to provide adequate financial support to bridge the gap to new employment.”
“Those are valid points and, whilst I believe that consideration should be given to those issues, I am mindful that, for the present, we should seek to implement what we can now, in order to establish a baseline to safeguard public finances. <BR /> <BR />The detail of the earnings thresholds, employees and bodies that will fall within the remit of the legislation and the mechanism for how it will work in practice will be specified in secondary legislation. Employers, of course, seek to offer alternative employment before making an individual redundant. For example, the Northern Ireland Civil Service has a clear policy of using redeployment to avoid having to reduce staff through such measures as exit or redundancy schemes.”
“I acknowledge and accept that that is a valid point. Certainly, the LCM does not preclude the adoption of a more radical approach in the future; indeed, it will be for my Department to evaluate and review the impact of this legislation to determine whether, going forward, a more targeted, Northern Ireland approach should be adopted. For example, should the threshold be reduced to more accurately reflect public sector salaries here in Northern Ireland, or should the legislation come into effect for re-employment to any of the public sector, rather than just to those who return to the same part of the public sector?”
“I acknowledge and thank the Committee for Finance and Personnel for its timely consideration of the memorandum. Furthermore, I welcome the support of the Committee for the legislative consent motion. <BR /> <BR />I note that the Committee has drawn attention to the threshold of earnings being set at £100,000. Specifically, the Committee's report states that the provisions”
“The Bill will ensure that public-service funds are not diverted to compensate high-earning individuals for loss of office in cases where that loss is transitory due to the individual re-entering paid employment in the sector.”
“The regulations will merely set the baseline requirement and will not impinge on existing provisions for the recovery of redundancy payment operated by some employers. These proposals seek not to replace but, rather, to underpin current exit payment arrangements. Indeed, in some areas of the public sector, employers will choose to go further in recovery. These measures will not affect an individual's entitlement to statutory redundancy. <BR /> <BR />Legislative consent for these provisions will also ensure that the same protections for public finances are applied consistently in Northern Ireland at a time when finances are already stretched. <BR /> <BR />The principal intent of the Bill is to safeguard public finances.”
“This represents poor value for money. <BR /> <BR />Of course, it would be within the scope of the Assembly to legislate for this provision through its own Bill. However, there would not be sufficient time to enable such legislation to receive Royal Assent by April 2015. Therefore, to guarantee consistency of approach, avoid barriers to labour mobility and ensure that high-earning public servants in the devolved Administration are not treated more favourably than their counterparts in the rest of the United Kingdom, I consider that securing the Assembly's agreement to legislate for this policy via a legislative consent motion (LCM) is the most effective approach by which to secure the timely protection of public funding. <BR /> <BR />The clauses are scheduled to take effect from April 2015.”
“<BR /> <BR />Where the minority of these staff leave and shortly rejoin, these measures will ensure greater fairness for other public-sector workers and the taxpayer, and flexibility regarding re-employment that avoids an unnecessary discouragement to return to work. <BR /> <BR />Redundancy pay has played a vital role in supporting the reform of public administration here in Northern Ireland. For employees who have voluntarily or otherwise left public service, it has helped to support them while they find new work. In that context, however, it is entirely unacceptable that highly paid public-sector workers receive a generous redundancy package and then, within 12 months, return to work in the same part of the public sector. In such circumstances, the justification of financial support to bridge the gap to new employment is undermined.”