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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“Instead of looking back at three or four years of a Budget and foolishly trying to redo a whole Budget for just a few months, let us exhibit a maturity hitherto not shown on all sides of the House, adjust the in-year position and agree a draft Budget for next year as quickly as possible.”
“Perhaps this issue has been conflated in the mind of the proposer of the motion. It should not be seen as any less pressing or important because a new financial year is six months away. There are considerable pressures ahead of us in terms of the 2015-16 Budget, and I want the Executive to deal with that as quickly as possible. <BR /> <BR />In conclusion, our budgetary position is, indeed, challenging. What was always going to be very difficult is complicated and exacerbated by the issue of welfare reform.”
“A recent letter from the Deputy Prime Minister pointed out that the cost of that could be around a total of £1 billion a year. That is £1 billion of current and capital expenditure that, in the circumstances we find ourselves in, we cannot afford. <BR /> <BR />How then will we deal with the challenges that are before us? Instead of playing political stunts in this place, there is serious work for me and my colleagues to do. In the first instance, in the in-year position, urgent action is needed. The October monitoring is not due for four weeks, but we cannot wait for four weeks to take tough decisions; Departments need to be best informed about the reductions that we want them to make and so they can plan to make them in as sensible a way as possible. <BR /> <BR />We also have a Budget for 2015-16.”
“Of course, the biggest problem that we face — it is really beginning to bite — is welfare reform. The June monitoring paper dealt with £13 million that was removed from our 2014-15 baseline. It also went on to state that further reductions in October to reflect the position on welfare at that time would be made. That would amount to reductions of at least 2·3%, if indeed, health and education are exempted. The problem is about to get much, much worse. <BR /> <BR />In a letter to me on 31 March, the Chief Secretary to the Treasury said that next year's penalties would be £114 million. We are also in a position now where, because of the closing down of the welfare system across the water, we may have to develop our own IT system.”
“Ministers or Members who stand up and say that their Minister's Department should be treated more beneficially must understand that that comes at a cost in the situation in which we find ourselves, and the money has to be found from somewhere else.”
“Now I have never been sure why, if the NHS were bankrupt, it would file for bankruptcy in US courts. Of course, it has not gone bankrupt, and the current Minister, Mr Poots, has already found close to half a billion pounds' worth of savings and has committed to finding a further £170 million before the year is out. <BR /> <BR />As I said, other pressures are developing across all Departments: Justice, Regional Development, Education, Enterprise, and Agriculture. Many of those are legal and contractual. I have never heard anybody in the House say that all those pressures are anything other than a priority. It goes back to the point that Mr McCallister made: if Members of the House say that something is a priority, that means that something else must, by necessity, not be a priority.”
“in the health service. Since 2011, the number of nurses in the health service is up 5·7%, the number of medical and dental consultants is up 15%, and the number of allied health professionals is up 12·7%. So, that was not such sagely, saintly advice from Mr McGimpsey back in 2010. Mr McGimpsey also said that hospital waiting lists would rise. However, from May 2011, the number spending longer than 12 hours in EDs has gone down by 73%. I will give one example: arthritis sufferers, who had to wait nine months in 2011 for expensive specialist anti-TNF drugs, now wait less than three months. Of course, in 2011, Mr McGimpsey also said:”
“First, he said that Health should not have bid in the in-year monitoring process. He is right: the agreement made was that Health should not have bid. However, in previous years, thank goodness we had Health to absorb some of the money that was given up by other Departments, including his party colleague Mr Kennedy's Department. If we had not had Health to absorb that £273·5 million of resource and reduced pressures across the board over the 2011-15 Budget period, there is a risk that money may have been lost to London over that Budget period. <BR /> <BR />Before we get to a position where Michael McGimpsey is held up as some sort of saintly sage, it is important to look at what he actually said back in 2010 and 2011. He was described as having "pinpoint accuracy" by Mr Nesbitt. Let us look at how pinpoint accurate he was.”
“In June, for example, we had the Regional Development Minister come forward with pressures in respect of concessionary fares, £5 million of which was met. OFMDFM, DCAL and others had Together: Building a United Community pressures of over £3·5 million. In total, there were about £17 million worth of departmental pressures that I thought that it was right to recommend that we meet. The early stages of the October monitoring round are revealing that there are further pressures. For example, in June, £20 million was allocated indicatively to Health, but the Minister has outlined a need for a minimum of £60 million to cover and live within his means this year. <BR /> <BR />Before I move on to other pressures — there are other pressures — it is worth picking up on some of Mr Nesbitt's comments about the health budget.”
“Those commitments have been entered into over the past number of years and have been supported on all sides of the House. They include — this relates to the June monitoring round — a restoration of £7·7 million to DETI's budget to encourage job creation, £4·3 million for the historical institutional abuse inquiry and £12·8 million for local government reform. A total of £30·4 million had to be spent this year in-year to meet those Executive commitments, none of which, I understand, is opposed by anybody on this side of the House. In effect, what happened is that the cheques were written before and had to be cashed this year. <BR /> <BR />The third reason that we are where we are is that there are growing departmental pressures.”
“As Mr McKay, who is not with us, pointed out, that Budget and spending plan were endorsed by Mr Nesbitt, Mr Kennedy and their party when they ran on the Conservative manifesto back in 2010. The building block and foundation of the problems of where we are lie in the fact that we have effectively had flat cash in our resource budget ever since 2010. If anybody in the House is more responsible for that than anyone else, it is the Members from the Ulster Unionist Party, many of whom are sitting looking at me here and actually ran on that manifesto — Mr Nesbitt, Mr Kennedy and others — for Parliament back in 2010. The spending plans that we have are not my spending plans; they are their spending plans. <BR /> <BR />The second reason that why we are where we are is Executive commitments.”
“In 2014-15, the year we are now in, that is up to £10·170 billion. That is a difference of £284 million. That is a lot of cash; £284 million is a lot of money. However, when you consider inflation and all the other pressures on budgets, that is in effect flat cash over the period.”
“Our Budget is under pressure. The sick and vulnerable will suffer, and public services will be adversely affected. I have heard many Ministers talk about how public services will be affected, both by in-year reductions and by the prospect of reductions next year. However, it is important that everyone is clear about why "We are where we are", to borrow Mr Kennedy's phrase. Why are we in such a challenging position, where we have already had to make 2·1% reductions in the June monitoring round and face the prospect of at least 2·3% reductions to budgets in October as well? The starting point is that, over the period, we have, in effect, had flat cash on the resource side because of the block grant Budget allocation made to us by London. In 2010, our resource budget was approximately £9·886 billion.”
“No. <BR /> <BR />The motion also talks about a new Programme for Government. Whilst I do not have direct ministerial responsibility for the whole of the Programme for Government, the Executive, which, as has been pointed out, includes Mr Kennedy, are undertaking a mid-term review to roll forward existing Programme for Government targets and introduce appropriate new ones. I would certainly have expected a Minister in the Assembly to know that, as well, of course, as the Chair of the OFMDFM Committee, namely Mr Nesbitt. <BR /> <BR />It would be easy to be completely dismissive of the motion because of its wording. It is a motion that shows little or no understanding of our Budget process or appreciation of ongoing Executive work, but I have sympathy for the motion's sentiments, even if the wording is extremely poor.”
“I am not sure whether the Member is arguing that we should do everything in exactly the same way as the rest of the UK. That would be a novel approach by a Member from his party, the SDLP. I think the fact that we have the monitoring round process is a good thing. As I have pointed out, we have been able to distribute close to £1 billion already over this Budget period, a Budget period that, supposedly, is not working. We have ensured that that money could be spent on projects where it was needed and be taken away from areas where it was not. Importantly, it has ensured that we have not had to send a single pound back to Westminster because we have not been able to spend it.”
“That suggests to me that the process, whilst maybe not perfect or ideal, is more than capable of moving money around from where it is not needed to where it is, so that it can be spent and so that we do not lose any money — as we have not done over this period — through handing it back to Treasury because we have not been able to spend it.”
“<BR /> <BR />In this supposedly unravelling 2011-15 Budget, in the last three full years, on the current expenditure budget side of things, we have redistributed nearly £400 million worth of resources. That is a sizeable amount of money that has moved around the system. On the capital side, about £320 million has been moved around, from one budget to another. If you include the earlier parts of the June monitoring of this year, nearly £850 million in current and capital has been moved around budgets in-year.”
“You cannot increase rates in-year; there is no opportunity to levy something like water charges in-year; and there is no more money coming from London this year. Therefore, the only source of resources that would be at the Executive's disposal would be from the existing budgets allocated already to Departments. That is exactly what the monitoring round process is all about. That is what it does: it takes money that cannot be used from budgets and dispenses it around other budgets and other Departments that can use it. We have two monitoring rounds still planned for the remainder of this year, in October and January. That is a more sensible way of dealing with the issues that we have before us. It may not be perfect; it may not be ideal; but it is a process that, if you look at the record you see, has worked in the past.”
“Think of the practical considerations: political negotiations to agree a draft Budget; then a 12-week public consultation — we are required in legislation to have a public consultation on our Budgets in this place; and then the final Budget agreement, which would require political negotiation. By the end of all that, it would be a new Budget for fewer than three months of the financial year. This question has to be asked: what is the point or purpose of a Budget for fewer than three months? <BR /> <BR />The second practical consideration — always an important one when dealing with Budgets — is about money. Where would new or extra money that could make a difference in a Budget come from?”
“<BR /> <BR />I absolutely accept that this year's Budget is in an extremely challenging position. The motion uses the word "unravelling" for the period. Members may use that word or "unviable", "untenable", "challenging" or whatever adjective they wish to find. However, is the answer to the problems that we find ourselves in a whole new Budget process? The answer is a categoric no, and there are two reasons why, both of which are practical considerations. <BR /> <BR />The first consideration is time. As many Members have said, if you read the motion before us, strictly interpret it and put it into practice, you will see that what is being asked for is a whole new Budget process for just six months of the financial year. We are nearly halfway through the financial year.”
“However, having listened to the proposer of the motion and to Mr Kennedy, I think that it is more about a total lack of understanding of the Budget process that we have to go through. <BR /> <BR />Aside from the impracticalities — I will come to the impracticalities of doing what is asked for in the motion in a moment or two — quite why we would want to rewrite a four-year Budget when three of those years have passed I am not quite sure. In fact, three years and six months are we into that Budget period, with only six months left. How or, indeed, why would we want to redo a Budget and/or a Programme for Government when three of the four years have passed? It is hard to comprehend how the whole 2011-15 Budget has unravelled, when three of the four years have actually passed into history.”
“I oppose the motion. Before I respond to some of the points that have been raised and the substantive argument that has been made today, I think it is worth echoing what others have said. The motion before us, on a strict reading of the text, is absolutely one of the daftest motions that I have seen since I came to the Assembly in 2007. I say that as somebody who, a number of years ago, brought a motion to the House about grass cutting. That it bears the names of the leader of the Ulster Unionist Party and a Minister of the Northern Ireland Executive, who ought to know better, is, frankly, embarrassing. When I first read the motion, I was not sure whether it was some sort of cunning plan, the purpose of which I could not quite detect because of how cunning it was.”
“Thirty-five were announced at Webtech in Enniskillen, which is in the Member's constituency, and 47 were announced at Magellan Aerospace in Greyabbey, which is in my constituency. Three hundred and thirty-eight jobs were announced at Deloitte in Belfast. I could go on and on. Jobs have also been announced by Baker and McKenzie; Almac, with nearly 350; and Capita, with 400 jobs. There has been small, medium and large-sized investment supported by Invest Northern Ireland over the last six months that has amounted to a huge number of permanent new jobs coming into Northern Ireland. I think that these are things that we, on every side of the House, should be welcoming.”
“In response to Mr Hazzard's question, I mentioned the significant reduction that there has been in unemployment. There are still issues. It is still higher than the UK average, and although it is significantly lower than the EU average and the figures in Republic of Ireland, it is still higher than we would like. We need to see further progress and more bearing down on it, and we need to address issues like youth unemployment. <BR /> <BR />However, when it comes to creating permanent jobs in Northern Ireland, the Member need only look at the DETI website and the news pages to see the number of jobs that Invest Northern Ireland has supported over the last number of weeks. Thirty-one jobs were announced yesterday at Smiley Monroe in Lisburn, and 22 — these are just in the month of September — were announced at the Deluxe Group in Portadown.”
“I am sure that what will come back from the Department is that much of what we are doing in trying to attract investment into Northern Ireland and to grow indigenous firms is all aimed at ensuring that, whether it is unemployment, youth unemployment or underemployment, we are strengthening our economy and creating opportunities for everyone.”
“I can certainly furnish the Member with any specific elements of existing strategies that deal with the issue of underemployment. However, sometimes we focus particularly on elements of unemployment, such as youth employment. Those are problems, but I think that we are making significant process in addressing underemployment. We are also making slow but positive progress in addressing economic inactivity in Northern Ireland. However, we must not forget that there are many people who, whilst they are in work, are defined as underemployed because of the hours that they are doing or the type of job that they are performing.”
“I do not know enough about the potential power station to pass any definitive comment, and I would be cautious about doing so either on my behalf or on behalf of the Enterprise, Trade and Investment Minister. I will therefore refrain from passing particular comment on that. I am not sure what the status of that proposal is or whether the proposer has applied for public money. However, I am sure that officials will have heard the Member raise the query, and I will ensure that they write to him with more detail.”
“It may not be seen as a pressing matter in this place, but that is one reason why the Enterprise, Trade and Investment Minister and others in the Executive, including me, have long talked about security of supply rather than prices. <BR /> <BR />We need to continue to focus on achieving our Programme for Government targets for the diversification of our energy sources. I also note that we are on track to reach our target in terms of renewables. We also have to press ahead with improving our infrastructure. That includes the North/South interconnector, which will ensure that Northern Ireland's electricity supply can benefit from having better connectivity to the Irish Republic.”
“The Member may be right to characterise that situation as seemingly remote and distant to the activities of this House, but when civil unrest or crisis happens in eastern Ukraine, it has an impact further afield. The Member is right to highlight the impact that it could potentially have on gas supplies, as so many natural gas supplies for Europe come from Russia and through Ukraine. As I understand it, most of the UK's supply of natural gas that is not our own comes from either liquefied natural gas or from Norway, but those ships can be diverted mid-sea to go to other places where that gas is needed or where a higher price is paid. That is something that we should be aware of.”
“At this moment in time, that is to the exclusion of all other possible tools, which I am not as convinced would have as transformative an effect on our economy as corporation tax would have. That is the one that I remain focused on; that the Enterprise, Trade and Investment Minister remains focused on; and that the Executive as a whole remain focused on. If we get that power and take the decision to reduce corporation tax in Northern Ireland, then I think that it will have that effect. Whilst not being a silver bullet for our economy, it will have a transformative effect in a way that no other tax-raising or -varying power could have.”
“I do support the devolution of necessary tools. The Member and I might disagree on what the necessary ones are. In the past, I have supported the devolution of air passenger duty for long-haul flights where there was a very clear need to do that in order to retain that direct connectivity into North America, and I still support the devolution of corporation tax powers to Northern Ireland. We all know that, when we get it — I remain optimistic that we will get it. We await news later in the week about another part of the United Kingdom and what it decides to do. However, I remain optimistic, irrespective of the result there, that the power will be extended to Northern Ireland, and then it is a matter of us deciding what to do with it. <BR /> <BR />When we do get it, it will be challenging.”
“For the last number of years, DETI has had, through Invest Northern Ireland, a policy of pursuing companies that are paying well above the median wage in Northern Ireland. That can be seen in the long list — the almost daily list — of new companies that have been investing here in Northern Ireland over the last couple of months, and the vast majority of them are paying well in excess of the living wage and paying well above the median wage in Northern Ireland as well. I think that the whole House is agreed that the way in which we will tackle some of the underlying problems of poverty in our society is by ensuring that not only are there jobs but that there are well-paying jobs in our economy.”
“I do not disagree with the assessment that there will be patchy elements to it, but, from listening to the coverage and reading the report, I do not think that we should be dismissive of the tremendous progress that has been made, particularly over the last 12 months. Unemployment in Northern Ireland fell by 1,400 in July, and that was the single biggest decrease in unemployment since October 1999; so it was since even well before the current downturn. Whilst our unemployment rate is a little higher than the UK average, it is still considerably lower than our neighbours to the south. <BR /> <BR />The Member mentioned wages, and I had hoped that we might get on to the living wage question earlier, but Mr Maskey was not in his place.”
“I saw and noted the report from PwC. The Member has highlighted an element of it that stood out, and the media coverage described it as a patchy recovery. In some respects, I do not disagree with that; I said that over the last year. I think that we are in full recovery mode now. However, there will still be elements of the economy that will lag behind a little. <BR /> <BR />In certain sectors — retail is one and construction is another — I do not think that you will see the same degree of growth or impetus behind growth as, perhaps, you will see in other sectors, including services and the manufacturing sector, which have done quite well over the last year and other years.”
“It is an area where there is huge scope for development, but a lot of work needs to be put in to support the companies that are already doing that work and also, importantly, to connect what we do in the public sector in the NHS. Sometimes I think that, allied to the type of scare stories that Mr Flanagan came out with about privatising the health service, and no matter what your views are about privatising, there is nothing wrong, in my view, with using the opportunities that are there and that have come from public investment to leverage in commercial opportunities that will create jobs on the one hand and, on the other hand, help to solve big problems around cancer and other serious illnesses.”
“The Member will be acutely aware of the financial constraints that the Minister finds himself in, the difficulties that we have around meeting the huge demand right across the health service and the pressure that his budget is under — pressures that are not helped by a lack of progress on welfare reform that is denying him and the entire Executive much-needed resources. I know that the Minister has made clear his desire to get a cancer drugs fund established in Northern Ireland, and I support him in that endeavour. <BR /> <BR />I do not think that there is any denial of the ability of Northern Ireland to play a leading role, particularly in cancer research, as we have done already. We should pay tribute to the likes of Almac and other companies in Northern Ireland for the work that they do in that field.”
“We are at risk of the Finance Minister answering DETI questions but actually answering a question for the Health Department. We are going on a very circular journey. On the issue of what the Health Minister has and has not done, I do not think that it is a matter of him rejecting the use of particular drugs.”
“So, there is a growing understanding and appreciation that, as awful as cancer is, there are opportunities to tackle it in a global fight and that Northern Ireland can play a role where we punch above our weight.”
“<BR /> <BR />The Member specifically talked about development in respect of cancer, and this Department, along with the Department of Health, has engaged the MATRIX panel to undertake a foresight and strategy review for health and life sciences to determine how best to grow the overall sector. Cancer will be included in that. The Member will probably recall better than I will that there was an announcement last year of a £13 million partnership to accelerate cancer-focused drug discovery in Northern Ireland. That was between Queen's University and Almac, one of our leading life sciences companies, and, as part of that project, up to 60 ovarian cancer patients will be trialled with a new locally developed drug.”
“I think that there is an increasing awareness that Northern Ireland has huge potential in commercialising the opportunities flowing from considerable public investment in cancer research down through the years. As I understand it, there are roughly 130 life science and connected-health companies based in Northern Ireland that employ around 7,500 people and have an annual turnover of over £800 million. So, whilst we sometimes think of life sciences in the broadest sense as maybe being the area of one or two big-name companies, it is much broader than that and has a wider impact on the local economy than we perhaps think.”
“I am sure that the Minister is acutely concerned about some of the issues that the Member has raised, particularly the suggestion that is being made by some that the proposed agreement will lead to the privatisation of the health service. It has been made very clear by the Department for Business, Innovation and Skills in London, which is in the lead at a national level on this, that the commissioning of health services remains the domain of individual member states, and, as a devolved region, we are at a further level down. So, the involvement of the private sector in the delivery of health and social care in Northern Ireland is and will remain a matter for the Assembly to decide upon.”
“There is a difference between being interested in an issue and being in the lead on it. The Department of Enterprise, Trade and Investment, as important as it is to Northern Ireland, is not involved in taking a lead in respect of trade negotiations between the United States of America's Government and the European Commission. That is, of course, dealt with at a much higher level than DETI is at. But it is important that there is regular input from Invest Northern Ireland through its chief executive, who meets his counterpart in UK Trade and Investment regularly and is kept apprised of developments. Where concerns are raised about the nature of any proposed free trade agreement, just as I am sure there will be across the other 28 member states of the European Union, they will be taken up with the officials in Brussels as well.”
“I am not sure of the origin or status of the document that the Member is talking about. Perhaps he could furnish the Department with some details. If we are being portrayed on a global stage as having only one skill — whereas, as the Member rightly says, we have many more than that — then I am sure that the Department would be keen to try to correct that and make sure that a more accurate picture of what Northern Ireland has to offer is included in any documentation associated with the free trade agreement.”
“The Trans-Atlantic Trade and Investment Partnership (TTIP) is a trade agreement that is currently being negotiated between the European Union and the United States of America. The negotiations do not constitute a devolved Government matter. It is the responsibility of the Westminster Government to work with the European Commission and other member states to develop a comprehensive trade and investment agreement that reflects United Kingdom priorities.”
“This has been agreed by both Governments in both jurisdictions. I am sure that it is something that, if it is not on the agenda of the first meeting, will be taken forward by the two Ministers in conjunction with the sporting and culture, arts and leisure Ministers.”
“I could set the agenda for this meeting, and it has not even been put in the diary yet. I am sure that one thing that the two Ministers will discuss along those lines is the ongoing development of a bid for the 2023 Rugby World Cup. A lot of interest is starting to develop around next year's Rugby World Cup. There is a huge opportunity for Ireland, both Northern Ireland and the Republic of Ireland, to capitalise on the growth and development of rugby across Ireland by having a successful bid for the 2023 World Cup. I think that it would have huge benefits for Northern Ireland in particular. The Executive, have invested considerably, in particular into Ravenhill but also into Casement Park, as part of the bid. I think that there is a ground in the north-west that may form part of the bid as well.”
“I am sure that, as with all such events, the Minister will want to appraise this year's results. Subject to a business case and, of course, the availability of funds, I am sure that she would want to support the Ulster Grand Prix and other road racing events across Northern Ireland.”
“It is worth putting on record again, if it needs to be put, the importance of road racing to Northern Ireland, not just culturally and in a sporting way but to the economy. I am sitting beside the Member of Parliament for East Londonderry, and he would remind me too of the importance of the North West 200 and other events around Northern Ireland including the excellent Ulster Grand Prix. <BR /> <BR />I think that the Minister will be more than happy to engage on the basis that Mr Givan outlined because of the previous success of the Ulster Grand Prix. I noted that, in 2011, it attracted over 16,000 visitors, some of whom were from outside Northern Ireland, and generated nearly £1 million for the local economy. You would absolutely want to support something that is as successful and as ingrained in the culture of Northern Ireland as that.”
“I thank the Member for his question. I realised, while he was asking me that, that I could commit the economy Minister to all sorts of things in this position, and she is not even in the country. Given my other job, that might not be the most responsible thing to do.”
“The Northern Ireland Tourist Board’s (NITB) international events fund for 2014 introduced a new model to support the development and sustainability of a number of events. The Ulster Grand Prix fitted the criteria for securing one- to three-year funding following a successful economic appraisal of an agreed business plan. As part of the three years of funding, the NITB commissioned an independent count and visitor attitudes survey for the Ulster Grand Prix in 2014. The results will be available in December.”