Jonathan Bell
Strangford · Democratic Unionist Party · Northern Ireland
“I did so because terminally ill children were being prevented from getting a hospital place in my area. While attempts were being made to prevent me from coming to the Public Accounts Committee, a terminally ill child was told, after being seen by doctors, that they could not have a hospital place and that, if they needed one, they would…”
“The permanent secretary replied "No" and said that everybody would recognise that every government worked by and on collective responsibility. <BR /> <BR />We are in a mess, and somebody has to shine a light on that mess. It fell to me, and I do not know why. I did not seek it, nor did I want it. I did not want to do it.”
“Let me conclude, Mr Principal Deputy Speaker. The regulations are necessary because of the extreme mess that we have found ourselves in. The points that I made when I had to shine a light on this devastating situation were not made in December. The points were made in writing to the then First Minister in March 2016.”
“The permanent secretary replied, "Well, that is right". <BR /> <BR />There were no regulations on the table when I spoke out. There was no suggestion that we could reduce to zero or even significantly reduce the costs, and we had no legal procedure, that I was aware of, that we could have followed.”
“But I cannot speak authoritatively because, even after the Public Accounts Committee meeting, when I asked the permanent secretary last week whether I could come and see the information that, I believe, legally should be made available to me, I got no reply. Nothing.”
“The second objective that I wanted to achieve was to stop the haemorrhage of public funds. Let us not pretend that the money is still to be spent: tens of millions of pounds of taxpayers' money has already been spent — £85,000 a day, day by day, as we go along.”
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“We have a strong presence in the aerospace cluster involving over 60 companies, and Invest Northern Ireland has been working closely with this supply base to enhance its competitiveness and support its continued growth. <BR /> <BR />In recent months, Invest Northern Ireland has brought delegations from Boeing and Airbus and their top-tier suppliers to Northern Ireland to see the advanced aerospace design and manufacturing capabilities that have been built up over many years. I must pay strong tribute to Bombardier for the major part that it has played in the development of this supply chain that is now able to offer expertise in key technologies including precision machining, composites design, manufacturing advanced metal forming, seating and interiors, and design and stress, along with tooling design and manufacturing.”
“Northern Ireland is a global leader in aerospace technology. We have a dynamic, rapidly growing international aerospace industry founded on a strong engineering heritage and rich in knowledge, skills and experience. Major aerospace corporations depend on Northern Ireland's reliable supply chain to provide quality, high-value-added products and services cost-effectively and on time using excellent logistical services. <BR /> <BR />In addition to Bombardier, on which my focus is today, Northern Ireland firms are working to support major international companies including Airbus, Boeing, Embraer, BAE Systems, Spirit Aerosystems and GKN Aerospace.”
“<BR /> <BR />It is important to recognise the cyclical nature of the aerospace sector worldwide and the peaks and troughs experienced by all major companies operating in that sector — Bombardier is not unique. It is true to say that Bombardier is experiencing challenges, but it is necessary for it to take action now to address those on a global basis to secure the company's long-term future. Northern Ireland is affected by the restructuring decisions announced last week, but other locations have been hit particularly hard as well, especially Canada and Germany. <BR /> <BR />I wish to take this opportunity to say something about the importance of Northern Ireland aerospace as a whole and the contribution that our vibrant aerospace cluster already makes to the local economy and the global aerospace sector.”
“<BR /> <BR />Over the years, my Department, through Invest Northern Ireland and its predecessor agencies, supported Bombardier as it transformed its Northern Ireland operations through a strategic programme of investment aimed at maximising the company’s capabilities and competitiveness. That equipped it to win major work packages for Bombardier's own aircraft families and for third-party customers, including Rolls-Royce and Airbus. Between 2002 and 2015, Invest Northern Ireland offered £75 million worth of assistance to Bombardier, including £21 million for the CSeries, in support of investment commitments totalling £844·5 million. While Bombardier said that there was nothing we could do to reverse last week's decision, we will continue to work closely with the company and explore other ways to support its drive for greater efficiencies.”
“I have met senior and top management of Bombardier on five occasions since taking up the post of Minister of Enterprise, Trade and Investment, and I intend to continue that contact. <BR /> <BR />Since the privatisation of Short Bros plc by the UK Government in 1989, Bombardier has invested £2·6 billion in its six sites in and around greater Belfast: in facilities, equipment, research and development; and in the training and development of its workforce. That is a formidable achievement that we must not overlook. It is indicative of the high-value nature of this important industrial sector.”
“I view that as a positive development for the CSeries project as a whole, particularly as the wings for the aircraft are designed, developed and manufactured here in Northern Ireland. The CSeries CS100 aircraft received Transport Canada certification in December 2015, which was a significant milestone in the programme's transition into service. I look forward to the CSeries entering service with Lufthansa Swiss as planned by the middle of this year. <BR /> <BR />The Government at Westminster, and the Northern Ireland Executive, primarily through Invest Northern Ireland, work closely with Bombardier here in Belfast and at its corporate headquarters in Montreal to ensure that the company's Northern Ireland operations are fully recognised in the strategic contribution that the company makes to UK aerospace.”
“While the news was deeply disappointing, Bombardier Inc made it clear that the decision was taken to safeguard the company's long-term future globally and here in Northern Ireland. I want to take this opportunity to assure the House that I am already working with my colleague the Minister for Employment and Learning to do all that is possible to limit the impact of the redundancies that will take place during the coming weeks and months. Bombardier has reaffirmed its commitment to the CSeries programme and to Northern Ireland's critical role in its delivery. <BR /> <BR />While we try to absorb the news of significant job losses, it is important to note that Air Canada has signed a letter of intent for up to 75 CS300 aircraft.”
“With your permission, Mr Speaker, I wish to make a statement to update Members on the announcement last week by Bombardier about its global restructuring. <BR /> <BR />I wish to take this opportunity to express my deep regret at last week's announcement by Bombardier Inc that it is planning to reduce its workforce in Northern Ireland. The impact of that decision will be hard felt in Northern Ireland, particularly by those who are personally affected. First and foremost, my thoughts are with the workers and their families as they continue to absorb the news. <BR /> <BR />Bombardier took the decision to rationalise its workforce across all its sites to ensure its viability for the future.”
“As I pointed out, with over 3,500 renewable heating installations incentivised to date, uptake has been higher than in GB. We have exceeded the target of 4%, with around 6% of Northern Ireland's heating now provided through renewable heating technology. Over the last 18 months, the number of non-domestic RHI applications has grown from around 200 to over 1,800. Over 900 applications were received in the run-up to the scheme changes of 18 November 2015. This, however, together with reductions in available funding, means that we all have to face up to the significant budgetary pressures. <BR /> <BR />In the circumstances, I have no choice but to propose closure of the scheme to prevent further overspend. The urgent need to manage the financial risk means that legislation must be brought forward at the earliest possible juncture.”
“He and others say that we have done badly, but we have exceeded our Programme for Government targets on heat and on renewable electricity. As I said, 4% was set for heat renewables by 2015, and we are at 6%. The target that was set for us on renewable electricity was 20%, and we have hit 23%. Now that we have exceeded the targets that the Programme for Government set for us on renewables, it is the time for us to bring our collective wisdom together to look at how these schemes and others can be progressed in an affordable way. <BR /> <BR />In conclusion, everyone should consider why the RHI is closing. The renewable heat incentive was introduced in November 2012 to the non-domestic sector and in December 2014 to the domestic sector, and it has been taken up very successfully.”
“<BR /> <BR />The issue of seeking the Enterprise, Trade and Investment Committee's approval has been raised, and I want Members to understand that, given the urgency of the situation, I am seeking the Assembly's approval of the necessary legislation to close both RHI schemes. Regrettably, the situation did not allow time to follow the established convention of seeking the Enterprise, Trade and Investment Committee's approval of the policy and draft legislation. I recognise the importance of the Committee's role, but I must take the course of action that addresses the risk to public finances and seek to progress the necessary legislation that I have laid before you today. <BR /> <BR />Mr Agnew said that we have a very poor record on renewables.”
“The RHI is an innovative scheme designed to support the achievement of 10% renewable heat by 2020. That is a challenging target, considering the baseline position of 1·7%. The Programme for Government interim target of renewable heat by 2015 has not only been met; it has been exceeded. The current estimate suggests that 6% has been achieved. By securing increased levels of renewable heating, Northern Ireland becomes more self-sufficient and more energy-secure, and it reduces our carbon footprint. The RHI is a positive news story for the Northern Ireland energy market as consumers embrace new technologies, reduce their carbon emissions and help to support the development of this new sector.”
“The increased costs associated with the surge in applications, together with budgetary reductions arising from the November spending review, mean that the available budgets for new applications have been exceeded. Meeting existing RHI commitments, let alone new ones, would have a significant impact on the Northern Ireland Budget, and that is why both schemes must close. <BR /> <BR />We should not necessarily look away from the success of those schemes. The RHI has provided homes, businesses, hotels, leisure centres, churches and schools with the opportunity to receive ongoing financial assistance to cover the costs incurred when switching to renewable heating. The RHI has been very successful. It is supporting 3,500 renewable heating installations.”
“<BR /> <BR />Look at the management of the scheme — Members have raised that issue. The low levels of uptake initially created a £15 million underspend in the first three years. Uptake improved in 2015 following promotional campaigns and the introduction of the domestic scheme in December 2014. A sustained increase in applications in the spring was the catalyst for the demand control measures brought forward for the non-domestic scheme in November 2015. However, in the run-up to those changes, there was an unprecedented surge in applications, with over 900 received in six weeks. That doubled the number of installations on the non-domestic scheme.”
“However, it is clear that the unprecedented increase in demand does require special scrutiny. My Department has initiated procurement of additional auditing and checks to supplement the programme of audits that are already completed by Ofgem, which administers the non-domestic scheme. Measures will be taken to ensure that the operation of the scheme is in compliance with the scheme requirements and the underpinning legislation. I do not think that the general public would expect anything less. <BR /> <BR />Conor Murphy raised the issue of allegations of fraud, as did others, including Fearghal McKinney. Let me put it on the record that we have received anonymous correspondence alleging abuse of the non-domestic scheme. I want to confirm to the House that I have brought that to the attention of the scheme administrator, Ofgem.”
“The November spending review in the UK sought to curtail spending, as is now well known. The letter from the Treasury that I referred to was dated 13 January 2016, and received by the Department on 15 January 2016. Official-to-official engagement ended on 22 December, and the Chief Secretary to the Treasury wrote to our Finance Minister on 13 January 2016 to fully outline what the November statement meant for the application of the RHI to Northern Ireland. As we know today, the scheme has enormous budgetary pressures, and must be suspended. We simply have no option. My officials and officials in DFP have exhausted all options in negotiating with the Treasury, and the scheme must now be suspended. <BR /> <BR />People raised the issue of fraud. I thought I had made that clear in my opening remarks.”
“Given my statement on 17 November, no one should be surprised today that the scheme is being suspended.”
“That is the statement that I made to the House on 17 November 2015. It appears to not have been well understood. <BR /> <BR />Mr Dunne asked some questions about timing. During the debate on 17 November 2015, I talked about bringing forward the legislation to limit the RHI tariffs. I will reiterate what I said at the time and what I have read into the record:”
“Listen to what I said verbatim in November 2015:”
“It is in black and white in the legislation that you should have read. If you have not read it, you should have read it, even in the previous years. You will see that, at every stage, even in the 2012 legislation, it refers to tariffs changing on 31 March. Anybody who did even a cursory examination of the legislation would realise that that does not amount to suspension on 31 March. The legislation is very clear. It only refers to tariffs. <BR /> <BR />Members have made a number of statements, and I do not intend to engage in any of the silly politicking or personal abuse. I refer Members to the Hansard report of 17 November. I will read it into the record. It states:”
“For those who want to be precisely clear on the energy issue and on the fact that March refers to tariffs, let me refer them to the Renewable Heat Incentive Schemes (Amendment) Regulations (Northern Ireland) 2015. Section 10(3) states:”
“Some of arguments that have been made will go off like snow out of a ditch when you refer to the facts and to the letter of 21 December 2015, which states:”
“We need to be clear: the RHI scheme has already brought over £50 million of investment into Northern Ireland. We now face a significant pressure going forward because Treasury will no longer fund the entire RHI. Let me say that again: we face a significant pressure going forward because Treasury will no longer fund the entire RHI. Nonetheless, the RHI will still bring something like £130 million into the Northern Ireland economy over the next five years. We will have to contribute around £100 million over the next five years, but the £130 million is additional investment over and above our block grant. <BR /> <BR />People have asked about timings. I want to refer to a letter dated 21 December 2015 that went to the Department and that I received through officials. That letter is very clear. It states:”
“I want to be clear on that, because I have heard people say that the legislation refers to 31 March as a closure date. I am surprised that the Chairman of the Committee does not know that that is simply not the case. One would have thought that he, the QC, Mr Agnew or anybody who had read the legislation would have known that. Let me say that what people are referring to as a closure date in the legislation is simply not that. The date of 31 March is referred to simply as the point at which the existing tariff changes to take account of inflation. The legislation provides for the scheme to be ongoing. That is why we need the legislation; otherwise, the scheme would stay open indefinitely. <BR /> <BR />The question was raised by Conor Murphy, Adrian Cochrane-Watson and others about investment and about RHI money being wasted.”
“I thank all those who have contributed to the debate. Energy matters are a major issue for the Assembly, local households and businesses. A number of issues were raised today, and I will go through them forensically. Everyone has had their say. Let me try to address some of the points that have been made. <BR /> <BR />The Committee Chair, Mr McGlone, raised the issue of 31 March 2016. I hope that everyone will take away, if they take away nothing else, that the date of 31 March applied only to tariffs. It did not apply to scheme closure. Anybody who examines this or looks at the legislation will understand that the only way in which the scheme can be suspended is through legislation. The date of 31 March applied to the tariffs, not to the suspension and ending of the scheme.”
“<BR /> <BR />To conclude, by looking to the future, I believe that the renewables sector can play a part in helping to reduce our CO2 emissions and bringing investment to our economy. I am open to suggestions on how we might engage with developers, installers and others to see where we might go in the future on renewable heat. That might involve consulting on the long-term position, looking at developments in other jurisdictions or considering options. However, any debate on the future must take place in an environment where costs are controlled. The only way to ensure that is to support, however reluctantly, the suspension of the scheme at this time. I ask Members to support the regulations.”
“I take those allegations very seriously. The evidence is not clear at the moment. I have asked officials to work with Ofgem, which administers the non-domestic scheme across the UK, to undertake extra checks and to look at existing processes to make sure that the scheme is operating in compliance with the legislation. An audit of internal procedures is also under way to assess management of the scheme and how it was set up to see where things could have been improved. However, we need to be careful when talking about abuse of how the scheme is operating. Many hard-working and committed households and businesses will have properly complied with the scheme, and it would be quite wrong to suggest that abuse is common without any evidence to back that up.”
“The Executive have many other priorities that demand funding, and if we do not move to close the RHI, those will be put at increased risk. <BR /> <BR />I want to make the point, however, that some of the reaction to the closure of the RHI implies that money has been squandered or investment lost. That is not the case. The RHI has seen over £50 million brought in to Northern Ireland over the last four years. That has gone to help some of our most important local industries, to bolster the rural economy and to provide much needed jobs. Existing scheme participants will continue to receive support for 20 years. Those who hoped to avail themselves of the scheme will, naturally, be disappointed, but let us not forget what benefits the scheme has brought. <BR /> <BR />There have been allegations of abuse of the scheme in some cases.”
“<BR /> <BR />Despite my support for RHI and however beneficial the scheme, I have to acknowledge that we cannot manage an Executive Budget on the basis of individual schemes taking off or incurring costs that were formerly funded from the UK without agreement.”
“That means that the available AME budget for the next five years is now already committed to meeting payments for existing RHI installations. Therefore, in the circumstances, I have no choice but to move to close the RHI scheme to minimise further costs and impact on the Northern Ireland block. <BR /> <BR />In bringing this course of action to the Assembly, I want to be clear how reluctant I am to close a scheme that brings such benefits in jobs, investment, environmental protection and meeting our renewable targets. Ensuring a more competitive and diverse heating market in Northern Ireland is therefore a key priority for me. We need to reduce our current reliance on fossil fuels. Heat from indigenous and renewable sources must therefore be promoted.”
“<BR /> <BR />Both RHI schemes — non-domestic and domestic — are paid out of annually managed expenditure (AME), which is in addition to Northern Ireland block grant funding. Normally, it would not have an impact on the Northern Ireland departmental expenditure limit (DEL) block funding. However, even though total renewable heating capacity through the NI RHI equates to over 6% of total capacity in the GB scheme, the Chancellor's autumn statement confirmed that an AME cap for Northern Ireland would be set at the Barnett share of circa 3%. That means that the block DEL will have to meet any funding in excess of that. <BR /> <BR />Total application numbers for the Northern Ireland non-domestic scheme now exceed our highest estimates.”
“To that end, advertising campaigns were conducted during 2013-14 and 2014-15, and the domestic scheme was introduced at the end of 2014. That has resulted in increased scheme uptake, particularly over recent months. The total number of renewable heating installations under the non-domestic scheme increased from just over 250 to over 1,800 during the last 14 months. A significant and unexpected surge in applications occurred in the six-week run-up to scheme changes in November 2015 that were intended to help manage demand. Over 900 applications were made in that short period. That, together with reductions in available funding, means that we now face significant budgetary pressures.”
“<BR /> <BR />Overall, with over 3,900 renewable heating installations incentivised to date, uptake has been higher than in GB. We have exceeded the Executive's PFG target of 4%, with around 6% of Northern Ireland's heating needs now provided through renewable heating technologies. We are well on the way to attaining the Executive-endorsed target of 10% renewable heat set out in the strategic energy framework. That will contribute to the UK's target of 15% renewable energy by 2020 as required by the EU renewables directive. <BR /> <BR />The focus during the initial period of the scheme was on trying to improve the performance of the RHI scheme to achieve the Executive's PFG target and ensure that the renewable heating sector and the wider Northern Ireland economy benefited from the investment.”
“We would have no choice but to keep making payments, regardless of the budgetary position. <BR /> <BR />I turn now to why we need to close the scheme. The renewable heat incentive, introduced in November 2012 to the non-domestic sector and in December 2014 to the domestic sector, has been taken up very successfully. The non-domestic RHI incentivises the uptake of renewable heat technologies such as biomass, heat pumps and solar thermal installations. It provides payments for 20 years on the basis of heat energy generated. The tariff is dependent on the size and type of technology and is calculated to cover capital costs, operating costs and non-financial hassle costs over the lifetime of the technology. The domestic scheme provides for upfront capital grants and seven years' support thereafter.”
“Mr Deputy Speaker, the Member should be aware that he will have his period to make whatever points he wishes to make, and I will have my period to consult on what he has to say and come back to him at the end of the debate. <BR /> <BR />As I was saying, let me apologise for repeating the point, but I want to make it absolutely clear that anyone who opposes this legislation is voting for an open-ended funding commitment. <BR /> <BR />The RHI scheme currently works to require government to fund all properly made applications for renewable heat installations. There is no choice but to make those payments and no way of turning off, slowing down or phasing out payments if we do not pass this legislation. We can debate when the scheme should close but, unless we pass the legislation, that debate would be pointless.”
“The nature of legislation, Mr Allister, is that you get unlimited time, I understand, to make your points. You will have your time, and I will answer those —”
“I apologise for repeating the point, but I want to make it absolutely clear that anyone who opposes this legislation is voting for an open-ended funding commitment.”
“I have no doubt that there are a range of views on closure. At one end of the spectrum, there are those who are not convinced that we should subsidise expensive renewable technologies. On the other hand, there are those who believe that we should invest more in the future of renewables. The speed of closure of the RHI can be debated either way. However, to anyone who intends to oppose the legislation, I have to sound an important warning: opposing the legislation means opposing the ability to suspend the scheme at all. That means continuing with an open-ended commitment to fund renewable heat, no matter what the cost. I cannot believe that, given the competing priorities for funding that we face, it is tenable that we give open-ended funding commitments.”
“The period since I announced my intention to close the schemes on 5 February gives those who are in the process of installing renewable heat equipment the month of February, effectively, to complete installation before the scheme closes. That reflects a reasonable balance between the need to manage scheme expenditure and giving those who are in the process of installation time to make decisions on whether to proceed. I have listened to the concerns raised about immediate closure of the scheme: that is why, with the agreement of the First Minister and deputy Minister, I have decided to defer closure for a further two weeks.”
“<BR /> <BR />I appreciate that the majority of those involved in the schemes will be anxious for clarity on their closure, so I confirm that the position is that, if the Assembly passes this legislation, I will issue a notice closing both schemes to new applications from 29 February.”
“<BR /> <BR />The amendments to the 2012 and 2014 regulations give the Department power to issue a notice suspending the schemes to new applications. The power arises where it appears to the Department that it does not have, or is not likely to have, sufficient funds available to it for the purpose of meeting the full cost of payments under both schemes. It is important to highlight that the purpose of these regulations is to establish the power for the Department to suspend the RHI schemes in the circumstances that I have described. They do not, in themselves, close the schemes. Closure requires a notice to be issued suspending the schemes from a particular date.”
“This statutory rule is being made under section 113 of the Energy Act 2011, which prescribes that these regulations must be laid in draft for approval by affirmative resolution of the Assembly. <BR /> <BR />I will begin with the technicalities of the legislation. These regulations amend the Renewable Heat Incentive Scheme Regulations (Northern Ireland) 2012, which I will refer to as the 2012 regulations, and the Domestic Renewable Heat Incentive Scheme Regulations (Northern Ireland) 2014, which I will refer to as the 2014 regulations. The 2012 regulations established a renewable heat incentive (RHI) scheme for the non-domestic sector, and the 2014 regulations established a renewable heat incentive scheme for the domestic sector.”
“Thank you very much. Unfortunately, I could not announce it myself because I was on other business that, I hope, in the long term, will deliver for the economy of Northern Ireland.”
“There is a really good news story in the Member's constituency, and I will look at every avenue that I have, not just in lobbying the UK on air passenger duty but seeing what we can do around air route development funds and marketing strategies that could lead to continued further success.”
“Yes. First, I congratulate Graham Keddie and his marvellous team for the success that they have had, not just in job creation but in increased passenger numbers. I believe that the UK as a whole should address air passenger duty, and we lobbied very strongly for that to happen. That does not take away from the fact that it should happen on a UK-wide basis to drive tourism in Northern Ireland. I will continue to work with all our airports; I have been to City of Derry Airport and I have seen the success of Belfast City Airport in increased passenger numbers and the boost to the economy.”
“You could have all the advantages of United Kingdom business, with lower costs and, I would say, a very attractive employment pool to work from — one of the best educated — and, into the future, the lowest rate of corporation tax in western Europe. However, it has been mentioned to me that that compliance across the United Kingdom, and particularly the regulation across the United Kingdom, has led to further investment in Northern Ireland.”
“Yes. Let me answer the question in the following way: one of the groups that I was with came here to create hundreds of jobs and is now in a position where they have created thousands of jobs. Their chief executive told me that one of the things specific to Northern Ireland is that, on an international market basis, people love the fact that, in terms of compliance, law and regulation, we are on the same page as the rest of the United Kingdom.”
“We have the unique opportunity of there being 30,000 jobs in front of us. The challenge is for us to ensure that we have young people with the skills to rise to that challenge and also to ensure that, as people progress, we see a decrease in economic inactivity.”
“Any investor will want to consider the employment legislation against the backdrop of putting a significant amount of investment into Northern Ireland. I have to say that in all my discussions, from Asia through to America and Europe, I have learned that when they look at Northern Ireland they are looking specifically to a talent pool with a very low rate of attrition; I think that, in some cases, it is less than 7%. Investors are looking to save business costs and are attracted by us having, in the future, the lowest rate of corporation tax in Western Europe. I think all of that has helped us to reduce our unemployment figures to approximately 6%. This stands against a European average of above 9%, and, the last time I looked, the Irish figure was 8.9%. So we are in a very competitive position. We cannot rest on our laurels.”
“<BR /> <BR />I think the Member also needs to understand that the Chancellor of the Exchequer has limited the amount of money being paid to Northern Ireland out of the UK pot as regards renewable heat, and that puts challenges on every Member of this House.”