Northern Ireland Assembly Flax Flower Logo

Northern Ireland Assembly

Monday 30 June 2008

Assembly Business

Ministerial Statements:
North/South Ministerial Council — Trade and Business Development Sectoral Meeting
North/South Ministerial Council — Tourism Sectoral Meeting

Executive Committee Business:
Diseases of Animals Bill: First Stage
Public Authorities (Reform) Bill: Second Stage
Charities Bill: Final Stage
Draft Children and Young Persons (Sale of Tobacco etc.) Regulations (Northern Ireland) 2008
Draft Smoke-Free (Exemption, Vehicles, Penalties and Discounted Amounts) (Amendment) Regulations (Northern Ireland) 2008

Committee Business:
Statutory Committee Membership
Rising Energy Costs

Oral Answers to Questions:
Health, Social Services And Public Safety
Regional Development
Social Development

Committee Business:
Rising Energy Costs
Authority to Amend the Assembly Members’ Pension Scheme (Northern Ireland) 2000

The Assembly met at 12.00 noon (Mr Speaker in the Chair).

Members observed two minutes’ silence.

Assembly Business

Mr D Bradley: On a point of order, Mr Speaker. At the conclusion of last week’s debate on Irish-medium education, Mr McCausland gave the winding-up speech. He implied that a Dr Réamaí Mathers was, or had been, associated with a paramilitary organisation. In the meantime, Dr Mathers has contacted me and asked me to raise the issue with you. He asks that you investigate the matter, with a view to correcting the Official Report.

I ask that you give the matter your urgent attention, as Dr Mathers considers that the remark could be detrimental to his personal security and to that of his family.

Mr Speaker: Mr Bradley has raised two issues. First, Members do have privilege in the House. That privilege goes only so far in certain issues; however, in this issue, the Member concerned does have privilege.

Secondly, Mr Bradley does not have a right of reply on that particular issue. I will look into the issue further and report to the House or by letter to Mr Bradley.

Ministerial Statement

North/South Ministerial Council —
Trade and Business Development Sectoral Meeting

Mr Speaker: I have received notice from the Minister of Agriculture and Rural Development that she wishes to make a statement regarding the North/South Ministerial Council (NSMC) trade and business development sectoral meeting. Before proceeding, I advise Members that I understand that neither this statement, nor the next that the Minister will deliver today, relates to agricultural or rural development matters. I remind Members again that the questions that follow the statement must relate to its subject matter.

The Minster of Agriculture and Rural Development (Ms Gildernew): Go raibh maith agat, a Cheann Comhairle. In compliance with section 52 of the Northern Ireland Act 1998, I wish to give the following report on the meeting of the North/South Ministerial Council in the trade and business develop­ment sectoral format, which was held in Enniskillen on 29 May 2008.

The Executive were represented by Minister Nigel Dodds in his capacity as Minister of Enterprise, Trade and Investment, and by myself, as an accompanying Minister. The Irish Government were represented by Micheál Martin TD, Minister for Foreign Affairs, and by Dr Jimmy Devins TD, Minister of State at the Department of Enterprise, Trade and Employment and the Department of Education and Science. The statement has been agreed by Minister Dodds, and I am making it on behalf of us both.

The Council welcomed the appointment of the new board of InterTradeIreland, including its chairperson, Dr David Dobbin. Dr Dobbin and the chief executive of InterTradeIreland presented a progress report on the work that has been carried out by the body since the previous NSMC trade and business development sectoral meeting, which was held in June 2002.

Examples of InterTradeIreland’s work include the recent launch of the entrepreneurship network and masterclass programme, and in the area of design, the organisation is scoping the potential for co-operative initiatives that will deliver competitiveness benefits. It is also examining co-operation with other industries and the private sector in order to explore the potential for initiatives on environmental goods and services.

Furthermore, the body is working with Enterprise Ireland and Invest NI to identify suitable projects for submission under the EU seventh framework programme for research. It also published recently a report mapping research and technological development centres on the island of Ireland, and it is exploring new opportunities for the aerospace sector.

The Ministers welcomed InterTradeIreland’s creation of 39 North/South business networks and the provision of information, advice and services to more than 14,500 companies. The direct participation of more than 1,300 companies in its programmes resulted in the generation of £134 million — or €171 million — in trade and business development, with an additional £260 million — or €331 million — forecasted from ongoing programmes.

The Council noted the increase in cross-border trade of 19·6% between 2003 and 2006. Indeed, recent figures show that cross-border trade increased to €3·1 billion in 2007. The Council also noted InterTradeIreland’s annual review of activities and its annual report, prior to their being placed before the Northern Ireland Assembly and the Oireachtas.

The Council approved InterTradeIreland’s 2008-2010 corporate plan and noted its two core strategic goals. Those are: first, to generate business values by enhancing company competitiveness and capability through co-operative North/South initiatives; and secondly, to improve the competitive environment for mutual benefit through co-operative policy research, reports and networks.

The Council supported the priority that InterTradeIreland will give to science, technology and innovation in its corporate plan and noted the targets that were identified in the 2008 business plan. First, a total of £47 million — or €69 million — in reported trade and business development activity will be generated by the North/South business networks of InterTradeIreland and by firms that are engaged in its projects. Secondly, 400 firms will become actively involved in developing the competitiveness of their businesses through the utilisation of the resources of InterTradeIreland, which are offered through its co-operative North/South initiatives. Thirdly, 2,000 firms will develop their business capabilities through the utilisation both of InterTradeIreland’s information and knowledge services resources and 25 North/South co-operative business and economic networks.

The Council agreed that the next meeting in trade and business development sectoral format would take place in September or October 2008. Go raibh míle miath agat.

The Chairperson of the Committee for Enterprise, Trade and Investment (Mr Durkan): There is something of a presentational oddness about the accompanying Minister making a statement in this manner. I, as Chairperson of the Committee for Enterprise, Trade and Investment, have not been given any reason or briefing as to why the statement was made in such a way.

I am not in any way criticising the Minister who made the statement. I want my concern recorded in order that that oddness does not pass without comment, which would enable the practice to be cited as a precedent.

I thank the Minister and her ministerial colleagues for their work in the meeting. On behalf of the Committee for Enterprise, Trade and Investment, I join her in complimenting the new board and new chairperson of InterTradeIreland for their work. The Committee also appreciates and commends the previous board’s work.

Will the Minister elaborate on the potential for initiatives on environmental goods and services, and how far those will complement InterTradeIreland’s work to improve co-operative policy research North and South? Issues such as climate change, renewable energy and waste management present business opportunities as well as challenges for public-sector expenditure.

Lord Morrow: On a point of order, Mr Speaker. Will you confirm whether this is the first time that a Minister who has not headed up a particular Department has made a statement to the Assembly on behalf of that Department?

Mr Speaker: I am not sure, Lord Morrow. However, it is in order for the Minister to make the statement. The Executive may select whom they wish to make a statement on their behalf to the House.

The Minister of Agriculture and Rural Development: I am relieved that Mr Durkan was not being personal when he commented on the present­ational oddness of my making the statement.

As accompanying Minister at the NSMC meeting, I did not expect to deliver the statement either. The subsequent ministerial reshuffle means that the lead Minister is no longer in post. Therefore, it was considered appropriate that a Minister who attended the meeting deliver the statement.

It was the first sectoral meeting on InterTradeIreland since 2002, so much of it was taken up with discussing the progress report in detail and work that had been done to date. That a great deal of other business had to be conducted meant that no detailed discussion on environmental issues took place. With the Member’s permission, I will forward his question to officials in the Department of Enterprise, Trade and Investment (DETI) and ask the Minister to respond to it in writing.

Mr Hamilton: I am almost dumbstruck by your initial ruling that the statement does not deal with an agricultural matter, which means that I am unable to ask questions about Comber potatoes or other local produce.

I noted with interest the positive section in the Minister’s statement about an increase of almost 20% in cross-border trade between 2003 and 2006. The Minister may not have the figures to hand, but will she provide a breakdown of that increase, including how much of it benefits Northern Ireland companies that sell to the Irish Republic? Furthermore, has any assessment been made of the proportion of that increase that is directly attributable to InterTradeIreland’s work, rather than to organic growth, which would have happened anyway?

The Minister of Agriculture and Rural Development: I thank the Member for his question. I do not have the figures that he requested. However, since 2002, InterTradeIreland has developed and rolled out a series of programmes and initiatives in accordance with its corporate and annual business plan.

In particular, between 2003 and 2007, the organisation created 39 new North/South business networks and engaged with more than 14,500 companies, to which it provided information, advice and services. That would not have been the case without InterTradeIreland’s hard work and dedication. It has also improved the range and effectiveness of its portfolio of trade and business-development programmes in the areas of science, technology and innovation, sales and marketing, and business capability.

I apologise for being unable to quantify the number from the North, but more than 1,300 companies that participated directly in InterTradeIreland’s programmes have generated trade and business worth more than £134·5 million — €171 million — with an additional forecast of £260 million, or €331·2 million. Therefore, that body has done a huge amount of work in the space of four years. That is a significant achievement that gives us great encouragement for those business links being developed for the future.

12.15 pm

Ms J McCann: Go raibh maith agat, a Cheann Comhairle. I also thank the Minister for her statement. The statement mentions:

“exploring new opportunities for the aerospace sector”.

Will the Minister comment further on that? What potential does the aerospace sector offer for the island of Ireland as a whole?

The Minister of Agriculture and Rural Development: As I say, we did not go into a great amount of detail. InterTradeIreland has considered the aerospace sector, but, primarily, Invest NI should deal with that matter. Therefore, I do not have enough detail to be able to respond to the Member’s question. At the trade and business sectoral meeting, there was no specific discussion about Enterprise Ireland’s role in the aerospace sector or Invest NI’s plans and projects. However, we are happy to respond to the Member in writing.

Mr Beggs: Like other Members, I find it very strange to be told that an accompanying Minister will present a report but may not be able to answer Members’ questions. Nevertheless, I will proceed with my question.

The statement mentions £134 million of cross-border trade, with a further £260 million anticipated. First, will the Minister clarify the time periods to which those amounts refer? Secondly, does the Minister agree that what is more significant to the economy in Northern Ireland is not cross-border trade but how that trade may help businesses here to improve their efficiency when they export to Great Britain, Europe and the rest of the world? Will the Minister give more detail on that issue?

The Minister of Agriculture and Rural Development: The fact that I may be unable to answer Members’ questions is less to do with my being the accompanying Minister than the fact that the sectoral meeting was dealing with four years’ worth of work, and, therefore, there was not much time to go into the minutiae of the work that had been done over that period of time.

InterTradeIreland’s vision is of a globally competitive enterprise environment in which Ireland, North and South, co-operate to ensure the optimal utilisation of economic resources — particularly knowledge resources — to drive additional trade and wealth creation. Its mission is to enhance the global competitiveness of the economics of both jurisdictions for mutual benefit through collaborative business, policy and research programmes as well as partnerships and networks.

From the figures, we can see that InterTradeIreland has been very successful in a short period of time and is continuing with its efforts to ensure that we are punching above our weight and achieving economic development across the island. That body will continue its work on economic and policy research to identify co-operative actions that will lead to mutual benefit. As I have said, the target areas will include science, technology and innovation, infrastructure, enterprise and business development, labour market and skills, trade and investment and the regulatory environment.

There are several key performance indicators for 2008-2010, such as the business value generated through InterTradeIreland’s initiatives, the number of firms engaged in InterTradeIreland’s initiatives and the number of trade and business development networks supported by InterTradeIreland.

Mr Neeson: I welcome the continued work of InterTradeIreland, an organisation that, at times, did not have the full support of all Members of the Assembly. I also welcome the increase in cross-border trade. Does the Minister agree that, if that aspect is to continue to grow, it is important that infrastructure — that is, roads and rail services, particularly on this side of the border — is improved?

The Minister of Agriculture and Rural Development: That is absolutely essential, and InterTradeIreland has produced research that maps the correlation between the level of job creation and business development in different areas with the location of the major arterial routes across the island of Ireland.

Those pieces of research provide the stark message that where there are roads, there will be business creation and development. The Minister for Regional Development recognises the importance of those arterial routes in the encouragement of business creation and development. InterTradeIreland will work closely with other agencies to develop the support that they can offer.

Roads infrastructure is crucial, as is technology infrastructure. The difficulties with broadband provision in rural areas, for example, are well documented. There are limitations to what InterTradeIreland can do, but it has done excellent work with the resources and time that are available to it.

Mr D Bradley: Go raibh maith agat, a Cheann Comhairle. Will the Minister explain why the meeting that she attended was the only meeting of the North/South Ministerial Council in that sectoral format since the restoration of the Assembly? Go raibh maith agat.

The Minister of Agriculture and Rural Development: I do not understand that question. It was the first meeting of InterTradeIreland since devolution. I do not know why it took so long before the meeting was held, but I was glad to attend it and I recognise the importance of InterTradeIreland’s work in the development of business and economic links across the island of Ireland. The meeting in May was welcome and, because another one is scheduled for September or October, the work of the body is progressing and being taken seriously by the Department of Enterprise, Trade and Investment.

Mr O’Loan: The second report by Sir David Varney, ‘Review of the Competitiveness of Northern Ireland’, refers to ‘The comprehensive study on the all-island economy’, which is a North/South intergovernmental document that was published in 2006. The Varney II report proposes that the programme of work that is detailed in that document be intensified across eight areas and that that study be updated. That recommen­dation is very important. Was it discussed at the meeting, and how will that proposal be advanced in the trade and business development sectoral meetings?

The Minister of Agriculture and Rural Development: Given that the meeting was a stocktake of the progress that was made in the past four years, it did not go into that level of detail.

Mr P J Bradley: Mr Speaker, you said from the outset that the report makes no reference to agriculture. However, given the importance of agricultural trade on the island of Ireland, why was it omitted from the agenda of the meeting, and will the Minister provide an assurance that it will be on the agenda of the next meeting in September or October?

The Minister of Agriculture and Rural Development: The Member will be disappointed to learn that I have a substantial answer to that question. Several months ago, InterTradeIreland indicated its enthusiasm to fund a study of the agrifood sector throughout the island. In recent years, the agrifood sector has been the subject of intense examination in the North. InterTradeIreland identified a shortage of information about the networking possibilities in the sector and, prompted by the Confederation of British Industry and the Irish Business and Employers Confederation in the South, felt that such a study would be valuable.

Officials are content, and new terms of reference have been accepted. The proposed study offers potential benefits to a very important sector in both jurisdictions. Therefore, I am pleased to say that InterTradeIreland is advancing that study and the group will be supported by an industry advisory panel comprising representatives from the local agrifood industry.

Ministerial Statement

North/South Ministerial Council —  Tourism Sectoral Meeting

Mr Speaker: I have received notice from the Minister of Agriculture and Rural Development that she wishes to make a statement regarding the North/South Ministerial Council tourism sectoral meeting.

The Minister of Agriculture and Rural Development (Ms Gildernew): Go raibh maith agat, a Cheann Comhairle. I am not sure whether Members want me to proceed, but I will carry on regardless.

I wish to make a statement in compliance with section 52 of the NI Act 1998 regarding the recent meeting of the North/South Ministerial Council in tourism sectoral format. The meeting was held in Enniskillen on 29 May 2008. The Executive were represented by the then Minister of Enterprise, Trade and Investment, Mr Nigel Dodds MP MLA and myself. Martin Cullen TD, Minister for Arts, Sport and Tourism, represented the Irish Government. This statement has been agreed with Nigel Dodds, and I make it on behalf of both of us.

The Council welcomed the appointment of the new board of Tourism Ireland, including the chairperson, Mr Hugh Friel. It considered a report from Mr Friel on the work of the Tourism Ireland board since the previous NSMC meeting in tourism sectoral format in November 2007. The Council noted the issues that were raised at the three board meetings that were held in the interim and the views of the board on the key components of competitiveness.

The Council also received an update from Tourism Ireland’s chief executive, Paul O’Toole, on the progress in implementing the Tourism Ireland 2008 business plan. An analysis of the visitor and revenue targets, including the more challenging trading environment that has arisen from increased economic uncertainty in some key overseas markets, was also noted.

A paper that proposed the opening of a regional hub to manage new and developing markets, such as China and India, was presented. The Council noted the increasing importance of those markets for the future growth of overseas visitors to the island of Ireland. It welcomed Tourism Ireland’s proposals to open a hub office for new and developing markets, which will enable the company to operate more effectively in the face of increasing global competition. The Council approved an increase in Tourism Ireland’s staffing complement by four to enable the company to recruit the staff for the proposed new and developing markets hub.

The Council considered a paper on tourism statistics that summarised the core requirements for tourism statistics, identified actual or potential gaps in key statistics and identified areas in which pragmatic cross-border co-operation may play a useful and effective role in filling such gaps. The Council noted the paper and requested that officials engage with the relevant agencies on the issues that were identified in the paper, with a view to reporting to the next appropriate NSMC meeting.

The Council agreed that the next meeting of the NSMC in tourism sectoral format should take place in November 2008. Go raibh míle maith agat.

The Deputy Chairperson of the Committee for Enterprise, Trade and Investment (Ms J McCann): Go raibh maith agat, a Cheann Comhairle. I thank the Minister for her statement. Does she have any further information about the proposed opening of a regional hub to mange the new and developing markets such as China and India? Does she know exactly where that hub will be located? Furthermore, is there a timescale for its opening? Go raibh maith agat.

The Minister of Agriculture and Rural Development: Go raibh maith agat, a Cheann Comhairle. The work on the hub has not yet been fully completed. Officials from the Department of Enterprise, Trade and Investment and the Department of Arts, Sport and Tourism are working together to agree the location of the new hub office and the timing for its opening. I expect that work to be expedited, and more information will be provided at a later date.

Mr Hamilton: A widely recognised weakness in Northern Ireland’s tourism industry is the lack of visitors coming to the country from the Republic of Ireland. Indeed, that weakness has been identified and targeted in the Tourist Board’s draft corporate plan. Did a discussion take place at the meeting on how we could work better with our counterparts in the Irish Republic to attract more visitors from the South to Northern Ireland?

The Minister of Agriculture and Rural Development: Some discussion took place on attracting visitors from nearby areas. The South of Ireland market is valuable and one that we would like increasingly to exploit.

The main discussion was about infrastructure and how we can best identify needs in that area. The Irish market is primarily the responsibility of the Northern Ireland Tourist Board, not Tourism Ireland Ltd; therefore, discussion was limited. However, that sector’s importance has been recognised.

Mr Savage: I also welcome the Minister’s statement, especially where she mentioned managing new and developing markets.

Does the Minister agree that Northern Ireland produces some of the best produce in the world, while, at the same time, adhering to the most stringent of quality standards? With that in mind, does she believe that Northern Ireland’s agricultural wares are being marketed to the fullest potential? If not, how does the Minister feel that that can be improved?

The Minister of Agriculture and Rural Development: I thank the Member for his question. That issue was discussed at the meeting, and we were shown some of the —

The Chairperson of the Committee for Enterprise, Trade and Investment (Mr Durkan): You were there?

The Minister of Agriculture and Rural Development: Of course I was there. I think that the Member regrets not being there. We talked about developing opportunities, the quality of our produce and how it should be marketed.

12.30 pm

During the presentation, I noticed that the first item on a website directed at the French market examines the food and cuisine that we have to offer. Tourism Ireland recognises that we should boast about the quality of our produce, which can be used to attract people to visit. To tell the French about the standards and quality of our cuisine is nearly like selling snow to the Eskimos. It is a recognised and increasing part of the overall package to attract visitors and to enhance their experience while they are here.

Mr D Bradley: Go raibh maith agat, a Cheann Comhairle. Gabhaim buíochas leis an Aire as an ráiteas a rinne sí. Táimid a coinneáil gnóthach ar maidin.

I thank the Minister for her statement. We are keeping her busy this morning.

Given the effects of the credit crunch, increasing oil prices and the generally worsening economic climate, will the Minister tell the House how Tourism Ireland’s business plan intends to ensure that the tourism industry in Ireland remains competitive in the face of those growing pressures? Go raibh maith agat.

The Minister of Agriculture and Rural Development: Tourism Ireland recognises that a more difficult climate exists in which to attract tourists. Although the situation is fairly difficult in 2008, it also accepts that that will become increasingly so in 2009 and 2010.

The business plan has estimated the 2007 visitor and revenue out-turn figures for North and South. A total of 7·739 million people visited the South, while 1·782 million people visited the North. That accounted for £2·643 billion in revenue to the South and £334 million to the North.

Tourism Ireland’s business plan for 2008 has set ambitious targets for challenging global trading environments and increased global competitiveness, to which Mr Bradley referred. It acknowledges the considerable challenges that the new market will face in trying to influence a wide range of Asian markets. It is incumbent upon me to congratulate Tourism Ireland on recognising the importance of developing new markets and on the strategic approach that it is taking to achieve that.

Mr Neeson: As the Minister knows, the people of Ireland are an island race, which, over the centuries, has been dependent on the sea. Both the North and the South have a rich maritime heritage, including shipbuilding, emigration, and so forth. Will the Minister agree that an opportunity exists for North/South co-operation to promote maritime heritage as a tourism package?

The Minister of Agriculture and Rural Development: I agree that the potential exists. At the meeting we did not go into that level of detail so I do not have any specific information. However, certain aspects, such as the Titanic Quarter, are being examined. That is a strong base on which to attract visitors.

Mr Newton: I also welcome the Minister’s statement. She will recognise the huge potential of the many festivals and cultural events that the Loyal Orders organise and the long and proud history of such events. Will the Minister outline the discussions that took place on maximising the potential of those events and confirm how the strategy is being evolved and developed?

The Minister of Agriculture and Rural Development: The Executive have set ambitious targets for increased visitor numbers and revenue. To achieve those we must identify all those who might be attracted to visit the region. As we move closer to lasting political and social stability, there should be less reluctance to expose aspects of the recent past that might be considered sensitive or controversial. Indeed, it must be hoped that as community tensions diminish our international image will further improve. That should create an opportunity to promote the diversity of tourism opportunities.

Although there are good reasons to promote cultural and political tourism, it must be done within a framework of principles that enjoy widespread acceptance. The Department of Enterprise, Trade and Investment is developing proposals for such a policy framework.

The entire issue of cultural tourism should be promoted and used. At the meeting, I made the point that, every day, visitors flock to take photographs of the murals at the bottom of the Falls Road. People come here to see what our past is all about, and we should not try to hide it. We welcome the fact that people come here with an interest in political tourism because it gets them here in the first place. They can then see what else we have to offer. Political tourism is an important part of the strategy that is being developed by DETI.

Mrs M Bradley: What is the Minister doing to promote agritourism, particularly in the context of the restrictive planning regime in the countryside? Will she guarantee that the revised PPS 14 will support agritourism businesses?

The Minister of Agriculture and Rural Development: Although PPS 14 was not discussed at the meeting, the potential development opportunities in my Department’s rural development programme were discussed. I talked about some of the projects — such as self-catering cottages — that were funded by my Department. Rural areas have good tourism projects, which we want to be highlighted and promoted.

I also discussed the benefits of natural-resource tourism and the fact that the forestry sector is in my portfolio. There is the potential for us to consider other partnerships that create more natural-resource tourism and attract more visitors here. It dovetails nicely with the work that the Minister of Enterprise, Trade and Investment and I are involved in — maximising the potential for tourism right across the Six Counties and in rural areas.

Mr Beggs: The Minister mentioned that the increased economic uncertainty in some key overseas markets was discussed. First, were the effects of fuel surcharges, particularly on long-haul flights, discussed? Secondly, was there any discussion about the importance of our near-at-hand market — that is, tourists from England, Scotland and Wales?

The Minister of Agriculture and Rural Development: The answer to both those questions is yes. Tourism Ireland noted the increasing importance of new and developing markets. We are not unique in experiencing fuel surcharges and similar issues; those are global phenomena that affect tourism markets across the world.

The fact that Tourism Ireland plans to open a new hub office indicates that it is considering new markets, because older markets that we relied on in the past — for example, the US market — are no longer as stable and cannot be relied on. The infrastructure must be in place to encourage people from other parts of the world to visit. Tourism Ireland is trying to influence visits to the island of Ireland in a challenging global environment. In such times, we agreed that it is all the more important to adjust the emphasis on target markets while maintaining a substantive presence in our traditional markets.

The Member specifically referred to tourism from Britain. It is recognised that that British market is important for our tourism potential. During the first half of 2008, Tourism Ireland invested more than £7 million in a wide-ranging marketing programme. The budget for 2008-09 and beyond includes provision for increased effort in the British market. It is recognised that it is important to encourage our nearby neighbours to visit. Numerous significant marketing campaigns have taken place in Britain to attract visitors to the island of Ireland.

Executive Committee Business

Diseases of Animals Bill

First Stage

The Minister of Agriculture and Rural Development (Ms Gildernew): I beg to introduce the Diseases of Animals Bill [NIA 22/07], which is a Bill to amend the Diseases of Animals (Northern Ireland) Order 1981, including provision for preventing the spread of disease; and for connected purposes.

Bill passed First Stage and ordered to be printed.

Mr Speaker: The Bill will now be printed and put on the list of future business until a date for its Second Stage is determined.

Public Authorities (Reform) Bill

Second Stage

The junior Minister (Office of the First Minister and deputy First Minister) (Mr G Kelly): I beg to move

That the Second Stage of the Public Authorities (Reform) Bill [NIA 19/07] be agreed.

Go raibh maith agat, a Cheann Comhairle, the Bill contains provisions relating to certain public bodies that are the responsibility of several Departments, but it has been co-ordinated and introduced on behalf of the Executive by the Office of the First Minister and deputy First Minister. The Bill arises, in the main, from proposals for change to several small public bodies as a result of the review of public administration. It abolishes the Fisheries Conservancy Board (FCB) and provides for the transfer of its functions to the Department of Culture, Arts and Leisure (DCAL). It also abolishes the Disability Living Allowance Advisory Board for Northern Ireland, following which arrangements will be made by the Department for Work and Pensions, through separate legislation, to extend the remit of the equivalent board in Britain to cover our interests.

In addition to those provisions, the Bill repeals primary legislation that is no longer required following the dissolution of the Pig Production Development Committee, Enterprise Ulster and Laganside Corporation. The dissolution of those bodies has already been effected by separate subordinate legislation introduced by the relevant Departments.

As we will no doubt hear shortly from its Chairman, the Committee for the Office of the First Minister and deputy First Minister was briefed on the contents of the Bill prior to its introduction, and it consulted all the other departmental Committees in view of the cross-cutting nature of the Bill. I am grateful to all the Committees involved for their consideration of the content of the Bill and look forward to further engagement during the formal Committee Stage.

I will explain in more detail the rationale behind the provisions that will effect the abolition of the Fisheries Conservancy Board and the Disability Living Allowance Advisory Board.

The Fisheries Conservancy Board is an executive non-departmental public body of the Department of Culture, Arts and Leisure. It is responsible for the conservation and protection of the salmon and inland fisheries, other than those that fall within the responsibility of the Loughs Agency of the Foyle, Carlingford and Irish Lights Commission. In 2002, a review of the Fisheries Conservancy Board concluded that, while there was a continuing need for the functions of the board, there should be radical change in the means of delivering them. The report recommended that the functions of the board and those of the inland fisheries branch of the Department of Culture, Arts and Leisure should be combined into one unit. That recommendation was confirmed as part of the review of public administration in 2006 and endorsed following the restoration of devolution by the Minister of Culture, Arts and Leisure.

The Fisheries Conservancy Board was set up to be financially self-sufficient and to derive an income from the sale of fishing licences and agency work. However, now that the board can operate only with substantial Government funding, the Assembly has already considered its future, debating a motion calling on the Executive to abolish the Fisheries Conservancy Board and transfer its responsibilities to the Department of Culture, Arts and Leisure as a matter of urgency. Members considered that the board was not fulfilling its main role of fisheries protection and was falling short of its other responsibilities. In response, the then Minister of Culture, Arts and Leisure explained that, although his Department had taken steps to support the operational activates of the board, he hoped that Members would facilitate the passage of the Public Authorities (Reform) Bill through the Assembly to allow a timely transfer of the board’s functions to the Department.

The Bill will enable the Fisheries Conservancy Board’s resources and expertise to be incorporated into the Department of Culture, Arts and Leisure. Organisational restructuring has been planned, resource needs have been assessed, and bids have been made to provide for a more integrated and strategic conservation and protection service. The basis for the service will remain the statutory remit outlined in the relevant legislation. In due course, policy and strategy will be reviewed in light of priorities and emerging best practices in fisheries management to ensure that the service is consistent with the needs of the public.

The Disability Living Allowance Advisory Board provides advice to the Department for Social Development (DSD) as required on disability living allowance and attendance allowance matters. The board does not have any staff, assets or executive functions; its members are paid fees and expenses for attendance at board meetings, and the Department for Social Development provides the accommodation and secretarial support.

The total cost to the Department is estimated at approximately £40,000 to £50,000 per annum.

There is a statutory requirement for the board, which meets four times a year, to include members with prescribed medical and professional knowledge, a carer, and people who are themselves disabled. In practice, it has proved very difficult to fill some of the vacancies on the board that require medical and professional expertise so that the statutory requirements can be met. In addition, the board’s functions here correspond to those of the Disability Living Allowance Advisory Board in Britain, which currently advises the Secretary of State for Work and Pensions.

Given the policy of maintaining parity in social security matters, there is merit in consistent advice from a single, authoritative, source being provided to both the Department for Social Development here, and the Secretary of State for Work and Pensions. A single board will also bring the provision of advice in that area into line with the Social Security Advisory Committee, and the Industrial Injuries Advisory Council, which provide advice in both jurisdictions. It has therefore been agreed with the Department for Work and Pensions that the remit of the Disability Living Allowance Advisory Board in Britain may be extended here, thus establishing a single board that will also advise the Department for Social Development. Moreover, it has been agreed that the new board will have at least one member from here, to provide a local perspective, and to ensure that our interests are represented. Again, that will mirror the arrangements of the Social Security Advisory Committee.

The Bill will streamline the delivery of functions currently undertaken by the Fisheries Conservancy Board and the advisory board. Furthermore, it will contribute — albeit in a modest way — to the reduction of the number of public bodies currently in operation here, and I am sure that that will be welcomed by Members. I commend the Bill to the House.

12.45 pm

Mr Molloy: Go raibh maith agat, a Cheann Comhairle. With regard to the general theme of the Bill, it is very important to get this statute in place, and it is hoped that it will remove more quangos. However, I have concerns about how we are to ensure that there is some local input to the Disability Living Allowance Advisory Board. Can the Minister reassure the House that there will be local input and accessibility to the advisory board, particularly to deal with issues involving poverty and stress-related illnesses? In England, Scotland and Wales back-up support is in place, whereas that support is not in place here. Decisions in relation to disability living allowance (DLA) therefore may be taken that, although taking circumstances into account, do not take into account that lack of back-up support. Can the Minister reassure the House that that issue will be considered, and that there will be local input to ensure that local circumstances are taken into account when decisions are made regarding DLA? My understanding is that, currently, many such decisions are taken at a distance from local offices.

Mr B McCrea: Members will note my pink tie and pink badge, which, I notice, are sported by other Members as well. The issue of breast cancer is something that must be addressed, and we must all support the fight against it.

I welcome the Bill, and recognise it as playing a vital role in reforming and streamlining numerous Departments, by transferring the functions of some public bodies, and dissolving others. I strongly welcome the transfer of the functions of the Fisheries Conservancy Board to the Department of Culture, Arts and Leisure. That will generate substantial savings to central Government, departmental payments to the board for services received, and grant-in-aid will no longer apply. I am pleased that the Ulster Unionist Party’s call for this move has been heeded. Such a shift will benefit not only Government, but anglers and conservation groups alike, who, over the years, have had continued problems with the Fisheries Conservancy Board.

Angling is a major sport in Northern Ireland that, unfortunately, has been repetitively hit by pollution incidents and mismanagement. This move will greatly improve the conservation of our inland fish stocks, and the health of our rivers.

The Bill makes further provision for the dissolution of the Laganside Corporation, and repeals further primary legislation. It is essentially a tidying-up mechanism. Previous provision has been made for the dissolution of the corporation, as it has achieved its statutory duty.

I congratulate all the people who worked for and with the corporation, which carried out excellent work during the past 15 years to transform Belfast’s riverside. Sometimes, people take that for granted, but the improvements that have been made during the past 15 years have been nothing short of remarkable.

Belfast’s waterfront is now unrecognisable. Its transformation has been a catalyst for the regeneration of the entire city and the new Titanic Quarter development. The Laganside Corporation is an excellent example of what can be achieved. A similar model can and must be introduced for the redevelopment of the Maze site, which is in my constituency. Members are aware that the Maze project currently faces some difficulties. Such a scheme could be introduced for the redevelopment of the entire site, not just for the proposed stadium. It is of paramount importance that, at a time when the Assembly has received criticism from Westminster on its handling of the Maze project, it shows that it can deliver. If the Assembly does not prove that it is competent in handling valuable assets, the Westminster Government will reject any further demand for assets. Unfortunately, they would be right to make such a rejection.

Mr Speaker: Order. It is important that the Member’s remarks stick to the Bill’s contents and remit. They have gone slightly beyond that.

Mr B McCrea: Thank you, Mr Speaker, for your direction. Of course, I will try to keep to that. I will conclude my remarks by pointing out that the Bill makes further provision for the abolishment of the Disability Living Allowance Advisory Board. That will bring Northern Ireland into line with the rest of the UK. My party supports the Bill’s provision for the winding up of the pig production development committee. It also makes further provision for the dissolution of Enterprise Ulster. The Ulster Unionist Party welcomes those moves and supports the Bill.

Mrs M Bradley: Perhaps the Minister will inform the House how much money will be saved to the public purse by the reduction in the number of quangos.

Mr McElduff: Go raibh maith agat, a Cheann Comhairle. I welcome the transfer of the Fisheries Conservancy Board’s functions to the Department of Culture, Arts and Leisure. That said, I want simply to put on record concerns that the FCB brought to the attention of the Committee for Culture, Arts and Leisure.

There is concern about the criminal proceedings involving fish kills that will not have reached conclusion, and about whether cases that involve civil claims will be resolved. There is also concern about the potential loss of the considerable expertise in fishing legislation that solicitors’ firms have built up when, after a prosecution file has been prepared by FCB, alleged fisheries offences are prosecuted through the court, and the lack of knowledge about whether the Department will continue to undertake functions such as the provision of a bailiffing service and support to angling clubs in the training of private-water bailiffs.

Those are some of the concerns that were raised by the FCB to the Culture, Arts and Leisure Committee. I want to put them on record and to support comments that were made earlier in the debate by my colleague Mr Molloy.

Dr Farry: Although I broadly welcome the Bill, I want to raise a few points and questions from the Alliance Party’s perspective. There is concern about the delay in the process. This is yet another Bill that has emerged from decisions that relate to the review of public administration (RPA), which were announced in autumn 2005 with respect to health and education, and in March 2006 with respect to a list of various quangos and boards. Similarly, there is concern about the Bill’s breadth as regards that list. I appreciate that, at that time, the Secretary of State indicated that 81 boards and quangos were under consideration. Certain changes, such as those that were made to Land and Property Services (LPS) and the Driver and Vehicle Agency, have already come into effect. There are questions about whether OFMDFM and, indeed, all of the Executive have been comprehensive in their consideration of the entire list.

It would be useful if the junior Minister were able to set out the work that still needs to be done in following up on that decision or whether the Executive have taken different views from those that were inherited from the Secretary of State.

I cannot resist making the point that, in that statement, the Secretary of State looked forward to the creation of an independent environmental protection agency. He saw that as being the inevitable outcome of the review of environmental governance that was being established. It is worth noting formally that that is not part of the Bill.

The Bill proposes a UK-wide approach to DLA. The Alliance Party supports that, but it is important that the House is clear that to support the Bill will further entrench parity in social security provision on a UK-wide basis. At times, comments have been made from the Floor of the House about trying to do things differently with regard to social security. It is important that, as a body, we talk through and resolve exactly what we want to do on that important issue.

For my part, parity has been an important aspect of social security provision across the United Kingdom since the late 1940s. Social security is formally devolved to the Assembly, but, given our society’s relevant dependency and the number of people who receive benefits, it is in the interests of the people of Northern Ireland not only to retain but to further entrench the principle of parity. It is important that the parties, particularly those on the Executive, take a collective view on where we are heading on the issue of parity and that we do not continue to send out mixed messages. I am sure that the Minister for Social Development will concur with that.

Undoubtedly, the Committee will have detailed comments to make, which I look forward to hearing. The Alliance Party is broadly supportive of the legislation, but we note that it is an extremely limited piece of legislation that has been brought forward after considerable delay. We are not sure what the justification for that delay has been.

Mr Dallat: I too welcome the Bill. I am sure that the Minister will accept that angling is a critical part of the developing tourism industry. Has the enormous power that has been held by absentee landlords since 1604 been addressed? Will that be a critical element in the development of tourism and angling in the future?

The Deputy Chairperson of the Committee for the Office of the First Minister and deputy First Minister (Mrs Long): As the Chairman of the Committee is unable to be present, I respond to the Second Stage of the Public Authorities (Reform) Bill on behalf of the Committee.

On 12 March 2008, the Committee for the Office of the First Minister and deputy First Minister was briefed by OFMDFM on the proposals for the draft Public Authorities (Reform) Bill. The proposals for the Bill had been subject to public consultation in January 2007. It was originally proposed that the Bill would make changes to a small number of public bodies, either through dissolution or a transfer of functions, and that it would remove statutory nomination and consultation rights from several public bodies.

Following public consultation, the scope of the Bill was significantly reduced. In particular, a decision was made to retain the Housing Council and to leave provisions for statutory nominations as they are. The Bill, as introduced, simply seeks to transfer the functions of the Fisheries Conservancy Board to the Department of Culture, Arts and Leisure and to abolish the Disability Living Allowance Advisory Board for Northern Ireland, with its functions being delivered by a UK-wide disability living allowance advisory board. The Bill also includes several repeals of primary legislation, which relate to organisations that have already been abolished, such as Enterprise Ulster, the pig production development committee and Laganside Corporation.

At the Committee meeting on 12 March, members raised several issues with officials from OFMDFM. In particular, concern was expressed at the limited progress that has been made to reduce the number of quasi-autonomous non-governmental organisations (quangos) in Northern Ireland. The original RPA proposals indicated that the number of quangos would be reduced from 81 to 53. However, on 31 March 2008, the Committee was advised that a total of eight decisions to abolish quangos had been reversed and that decisions are pending on the abolition of another 10 quangos.

The Committee agreed to write to the other Statutory Committees to seek their views on the draft Bill.

The Committee received a response from the Committee for Social Development about the abolition of the Disability Living Allowance Advisory Board for Northern Ireland. The response advised that the Committee for Social Development was not opposed to the board’s abolition; however, the Committee wished to highlight its need to continue to receive quality and timely independent expert advice about disability living allowance and attendance allowance matters under the proposed new arrangements.

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The Committee for Agriculture and Rural Development requested that the Committee for the Office of First Minister and deputy First Minister seek to have provisions included in the Bill to abolish the Agricultural Wages Board.

The Committee for the Office of the First Minister and deputy First Minister considered those responses together with information from OFMDFM on 23 April, 14 May and 18 June 2008. It noted the Committee for Agriculture and Rural Development’s views and forwarded them to the Office of the First Minister and deputy First Minister. Furthermore, the Committee sought information about the matters that it intends to explore during the Bill’s Committee Stage.

In particular, the Committee is seeking assurances that specific and appropriate mechanisms are in place to ensure that the UK-wide Disability Living Allowance Advisory Board is fully aware of the Northern Ireland perspective when it develops advice. The Committee will work with the Committee for Social Development to ensure that the interests of people in Northern Ireland who are in receipt of disability living allowance are fully protected. Furthermore, in light of the decision to retain the Housing Council, the Committee looks forward to receiving details of the more challenging remit that is to be set for it.

The Committee has ongoing concerns about matters that are relevant to, but not directly addressed by, the Bill, and it will pursue those matters with OFMDFM. We are still some way from delivering the reduced number of quangos that was proposed in the review of public administration. Therefore, the Committee has requested details of the cost-benefit analysis that informed the decision to retain quangos that were previously identified for abolition, and, as part of its role to scrutinise the implementation of the review of public administration, the Committee will continue to monitor progress towards streamlining decision making and improving accountability.

The Bill is relatively short and has limited scope, and the Committee has no objections to it passing Second Stage. However, the Bill contains some contentious areas and does not address others, and I hope that the Committee will be able to resolve those matters during the Committee Stage of the Bill.

The junior Minister (Office of the First Minister and deputy First Minister) (Mr G Kelly): Go raibh maith agat arís, a Cheann Comhairle. I am grateful for Members’ contributions to the debate. Although the Bill is at an early stage, the opinions expressed have been valuable and informative. I shall now attempt to address the points that were raised in the debate; however, if I miss any, I will write to the relevant Members.

In my introductory comments about the benefits of abolishing the Fisheries Conservancy Board, I referred to concerns about the services that it provides and its financial position. The board’s abolition will create opportunities to reorganise the conservation and protection of inland fisheries, which, as I also said, the Assembly previously supported.

After transferring functions, policy responsibility and former Fisheries Conservancy Board enforcement personnel will be under a single management system, which will result in a more integrated and strategic conservation and protection service. Such rationalisation will enable better utilisation of Fisheries Conservancy Board and Department of Culture, Arts and Leisure networks, intelligence and contacts.

Furthermore, transferring functions will provide an opportunity to streamline regulatory and decision-making processes, and utilising, when necessary, core departmental operational staff will offer greater flexibility in the provision of on-the-ground resources. Given that the Department already has regional out-stations and resources, work will also be able to be better organised regionally.

Consideration has been given to stakeholder representation after the transfer of Fisheries Conservancy Board functions to the Department. Following the issue of the public consultation document in December 2007, about establishing a stakeholder forum, a panel has been set up to analyse responses.

In the interim, when required, the Department will continue to assist the Fisheries Conservancy Board both on the ground and in filling key vacancies within the organisation. The Department will monitor the board through monthly meetings and by representation on the board and its executive committee.

Funding has been secured to ensure that the Fisheries Conservancy Board remains operational until it is abolished. In all the circumstances that I outlined, we are confident that the correct course of action is being taken.

As I mentioned earlier, the proposed changes to the delivery of the functions of the Disability Living Allowance Advisory Board will bring that area into line with the other two statutory advisory bodies that exist in the field of social security: the Social Security Advisory Committee and the Industrial Injuries Advisory Council. Those bodies advise both the Secretary of State for Work and Pensions and the Department for Social Development.

The changes will also go some way towards further reducing the number of quangos — and several Members raised that point — while ensuring that the Department for Social Development continues to have access to expert independent advice on disability living allowance and attendance allowance. There is no evidence that the Social Security Advisory Committee or the Industrial Injuries Advisory Council have failed to consider the needs of people here. We believe that there is no reason to suppose that a Disability Living Allowance Advisory Board with a remit to cover our interests will fail to address any particular local needs or circumstances.

Francie Molloy mentioned the loss of local input. As I said, both the Social Security Advisory Committee and the Industrial Injuries Advisory Council operate throughout Britain and Ireland already, and they do so very successfully. Les Allamby, director of the Law Centre (NI), is the Northern Ireland representative on the Social Security Advisory Committee, and he plays a very active role in the committee’s work. We are considering how best the North can be represented when DLAAB takes on its new role. The issue of individual cases was mentioned, but board members do not consider individual cases in these circumstances.

Mary Bradley asked about the cost-benefit analysis, which is an issue that the OFMDFM Committee raised recently. The relevant information on that is being gathered from lead Departments, but that process will take time. However, we will endeavour to provide the Committee — and, indeed, Mrs Bradley — with that information by the end of June. John Dallat mentioned absentee landlords, but the Bill, which is a parity piece of legislation, does not address that issue specifically.

The Department of Culture, Arts and Leisure will continue to promote angling through its public angling estate and will work for the improvement and development of angling in general.

Several Members mentioned quangos. Stephen Farry resisted the temptation to say anything about quangos, so I will resist saying anything about quangos and the Alliance Party. However, the OFMDFM Committee’s interest in the wider issue of reducing the number of quangos in general is welcome. OFMDFM officials are working to provide the Committee with the information that it has requested in order that it may consider the matter fully. However, I suggest that the purpose of today’s debate is to consider the general principles of the Bill, rather than to speculate on what might have been included in it. In any case, most of the bodies for which earlier decisions to abolish or transfer functions were reversed by Ministers would not have been included in the Public Authorities (Reform) Bill. The Bill’s scope did not extend to bodies where functions were to be transferred to local councils after devolution. Only the decision to retain the Housing Council affected the provisions of the original Bill.

Naomi Long mentioned the Agricultural Wages Board, and on behalf of the Committee, she also mentioned quangos. I am aware of the Committee for Agriculture and Rural Development’s view that provisions that relate to the Agricultural Wages Board might be included in the Bill.

The Minister of Agriculture and Rural Development has not requested the inclusion of such provisions. Furthermore, it is not the role of the Office of the First Minister and the deputy First Minister to sponsor the Bill on behalf of the Executive or to introduce such provisions unilaterally without the Minister’s agreement.

In response to Stephen Farry and Naomi Long; each Minister has a responsibility to review, departmentally, the number of quangos. The Department welcomes the Committee for the Office of the First Minister and the deputy First Minister’s interest in reducing the number of quangos. We will consider that suggestion.

I think that I have answered all questions; however, if I have overlooked any, I assure Members that I will respond to them later. I thank Members for their contributions to the debate on the Public Authorities (Reform) Bill and for their questions. I am confident that the Bill will provide greater effectiveness in the delivery of salmon and inland fisheries and of disability living allowance and attendance allowance advisory functions. The Executive are conducting the most wide-ranging reform of public services for a generation. A commitment to world-class public services that meet the needs of the economy and wider society is at the heart of that reform programme. The Bill’s main provisions are consistent with the Executive’s commitment to the delivery of more efficient and effective public services. I commend the Bill.

Question put and agreed to.

Resolved:

That the Second Stage of the Public Authorities (Reform) Bill [NIA 19/07] be agreed.

Charities Bill

Final Stage

The Minister for Social Development (Ms Ritchie): I beg to move

That the Charities Bill [NIA 9/07] do now pass.

I am pleased that this important Bill has reached its Final Stage. I introduced it to the Assembly in December 2007, and although its passage has been lengthy and time-consuming it has been productive. Today, I want to reiterate the main purpose, aims and objectives of the Charities Bill and thank the Committee for Social Development and other Members for their careful and detailed scrutiny. Furthermore, I look forward to future implementation developments.

To date, much of the legislation’s focus has been on the establishment of a proper regulatory framework for charities in Northern Ireland. That important step will keep us in line with developments in Great Britain and Ireland and help to ensure public confidence in charitable giving. However, it is equally important that we will be able to give proper recognition to the unique role and voluntary ethos of the charitable sector.

I want to establish a strong, accessible and supportive regulatory body in Northern Ireland. Although its main function will be to regulate and monitor charitable giving, it will also play a key role in the development of effective relationships and partnerships with those who serve the sector. The commission will be required to develop an ethos that promotes confidence in charitable giving, encourages sharing of best practice and, ultimately, helps to raise standards.

I have been pleased with the universal welcome that the Bill has received and for the cross-party support in the Committee for Social Development and in the House. However, despite the widespread acceptance of the principles of the legislation, there has been detailed and thorough scrutiny of the 186 clauses and nine schedules. I thank the former Chairperson and members of the Committee for Social Development for their extensive and considered evidence taking, their useful suggestions for amendments and for their comprehensive report, which was published on 13 May 2008.

I am confident that the process has produced better legislation and that it will lead to appropriate regulation for charities in Northern Ireland. I particularly welcome the engagement with faith-based charities and ethnic minority groups; their input was invaluable, and I did not hesitate to propose amendments to the Bill where that was the right thing to do.

1.15 pm

During the Bill’s Consideration Stage on 3 June, I referred to the progress of the Bill as evidence that local democracy was working. I reiterate that message today. The passage of the Charities Bill and other primary legislation shows that Assembly Members and others can influence the decision-making process. It also shows that politicians listen and take action.

The Bill, as it stands to be voted on by the Assembly, shows how a Minister and a Committee, working together with the joint aim of achieving better legislation, can achieve very positive outcomes. I will continue to work with the Committee as we make proposals for the implementation of the Charities Bill and the consequent regulations.

I will now proceed with the public appointment process for the new charity commissioners. I hope to be in a position to announce the names of the successful candidates by the end of October, and I would like the commission to be up and running by the end of the year. I have given a public commitment to locate the body outside the greater Belfast area. The decentralisation of public-sector jobs can make a significant contribution to improving the regional economic balance across the North. I hope to make a decision on the commission’s location in the near future. It will take some time to get the necessary subordinate legislation and other mechanisms in place, but I trust that we can all look forward to better regulation of local charities and improved public confidence in charitable giving. I commend the Charities Bill to the House.

The Chairperson of the Committee for Social Development (Mr Simpson): The Charities Bill comprises 186 clauses and nine schedules. It has been welcomed by everybody, including, most importantly, those in the voluntary and community sector. It creates a modern legal framework to support and encourage a vibrant and diverse third sector, and it provides robust controls around registration, regulation and supervision.

The Bill presents a perfect opportunity for the Assembly to give legislative recognition to the important role that charities play in Northern Ireland. Without the operation of charities, we would have a very different kind of civil society. We are indebted to charities for providing vital services, strengthening communities and representing the marginalised people in our society. On behalf of the Social Development Committee, I support the motion.

Mr Brady: Go raibh maith agat, a Cheann Comhairle. As has been said, the Charities Bill is a long and complex piece of legislation containing 186 clauses and nine schedules. I thank the departmental officials who went through the Bill clause by clause and facilitated the Committee in understanding its complexities.

The Bill will provide a definition of “charity” and “charitable purpose”, and it will establish a charity commission and a charity tribunal. It will also create a register of charities and deal with the regulation of charities and public charitable collections.

Initially, there was a lot of discussion around the issues of designation of religious charities, in relation to the number of years that they have been established and to the number of members. Evidence was received from some smaller Churches, and the amendments made seem to have resolved the situation and satisfied the majority of people.

As has been said, evidence was also taken from members of the voluntary sector. There was a lot of discussion around the make-up of the commission. The voluntary sector felt that the commission should be a small body with a chief and deputy chief commissioner, and possibly a staff of five. That was considered adequate, and the consensus was that if the commission’s staff continued to grow unchecked in the future, its effectiveness would be negated.

However, it has been accepted that staffing levels must be adequate in order to deal with the workload. The inclusion of one or two legally qualified persons on the commission is acceptable in the short term because of the need to interpret the complexities of the legislation.

The charities here have recognised that anything that boosts public confidence in them is important; the fact that charities will have to submit accounts for scrutiny will reassure the public. Overall, the Charities Bill can be considered a welcome piece of legislation. Go raibh míle maith agat.

Mr Dallat: Will the Minister tell the House how the charity commission will be staffed?

Ms Lo: I wish to add my thanks to the departmental staff and the Committee staff. In particular, I thank the Minister for Social Development for her open-mindedness and her willingness to listen to representations from rural communities as well as ethnic minority communities on the issue of designated religious status. The staff were very patient with the Committee and helped us to plough through our scrutiny of the 186 clauses of the Bill.

The voluntary sector and the charities certainly welcome this long-awaited legislation, which has been applicable in other parts of the UK. The charities see it as a positive Government intervention. We all now look forward to the establishment of the charity commission, and we hope that the Department will appoint a body of people with the appropriate knowledge and experience of charities in Northern Ireland, and that it will be given the proper resources to meet its objectives and carry out its many functions.

The Committee believes that it is important at the outset to have an awareness-raising campaign to help charitable bodies to obtain the proper advice and information on becoming established in Northern Ireland. Perhaps the Minister will also comment on the timescale for the establishment of the charity commission.

Mrs M Bradley: I welcome this legislation, and congratulate the Minister on the volume of legislation that she has laid before the House. Has the Minister any thoughts on where the charity commission will be located?

The Minister for Social Development: First, I wish to thank the Chairperson of the Social Development Committee and other Committee members, namely, Mr Brady, Ms Lo, Mr Dallat and Mrs Bradley, for their contributions to the debate. The progress of the Bill has been greatly assisted by constructive input in the House and in the Committee.

I look forward to working with all Members as we introduce the necessary Orders and regulations to enact the legislation. I am also committed to full consultation with the charity sector on important issues, such as the public benefit test and the proposals for the regulation of charity fund-raising. It is only by working together that we can ensure that a system is put in place that meets the requirements of regulators, donors and charities alike.

I wish to take the opportunity to address the issues that have been raised in the debate. Mr Brady and Mr Dallat asked about staffing, and I wish to reassure them about that. The charity commission will have a board comprising one chief charity commissioner, one deputy chief charity commissioner and three to five charity commissioners.

I have already approved the process for those public appointments, which will be regulated by the Office of the Commissioner for Public Appointments for Northern Ireland. I intend the posts to be publicly advertised in early July and to have commissioners in place by the end of October. The charity commission will have up to 16 staff, including a chief executive, based on comparison with the Office of the Scottish Charity Regulator.

Mr Brady raised the issue of staff numbers. Although I have said that there will be 16 staff, I will review staff numbers as and when required. If more staff are required, I will consider further recruitment.

I have already referred to the location of the charity commission, but I shall restate my position. My officials have been examining accommodation options for the commission. They have visited premises throughout Northern Ireland, and I hope to make a decision on the location shortly. I will consider a range of factors, including value for money and accessibility.

Members will be aware that I met Sir George Bain on 12 June, and I put forward my views on the potential for decentralising public-sector jobs, because that can make a significant contribution to improving the regional economic balance across the North of Ireland. I understand that Sir George will publish the outcome of his review later this year. However, I have stated publicly that I intend to locate the commission’s office and its jobs outside the greater Belfast area in order to afford greater accessibility to people, address the current regional economic imbalance and provide the opportunity for other areas to become hubs, as the regional development strategy promised.

The charity commission will be responsible for appointing its own staff, and the legislation provides for staff to be directly recruited or appointed through secondment. As I mentioned, there will be about 16 staff members.

Ms Lo asked about the timescale. I hope to decide quickly on the charity commission’s location and, when the Bill receives Royal Assent, to advertise publicly for potential commissioners. I hope to fully implement the appointment process, in accordance with the appropriate guidelines for public appointments, by this autumn and to have the commission up and running by the end of this year.

In conclusion, I thank all Members who debated the Bill, whether in Committee or in the House, for their substantial contributions and for their considered advice on, and attitude towards, this new departure for charities in Northern Ireland. That attitude clearly demonstrates that Government and local democracy are working, and it shows what can be achieved when a Minister and Committee — in this case the Committee for Social Development — work together for the common good of the people of Northern Ireland.

Question put and agreed to.

Resolved:

That the Charities Bill [NIA 9/07] do now pass.

Draft Children and Young Persons  (Sale of Tobacco etc.)
Regulations (Northern Ireland) 2008

The Minister of Health, Social Services and Public Safety (Mr McGimpsey): I beg to move

That the Draft Children and Young Persons (Sale of Tobacco etc.) Regulations (Northern Ireland) 2008 be approved.

I seek the Assembly’s approval to introduce the aforementioned statutory rule. Subject to the Assembly’s approval, that rule will substitute “aged 18” for “aged 16” in the Health and Personal Social Services (Northern Ireland) Order 1978 and in the Children and Young Persons (Protection from Tobacco) (Northern Ireland) Order 1991.

The rule’s main purpose is to make it illegal to sell tobacco products to anyone aged under 18, as opposed to under 16, which is the present limit. It will also require the replacement of existing warning statements in retail premises and on tobacco vending machines in order to reflect the change in the law.

1.30 pm

My Department will fund replacement signage. That measure will bring Northern Ireland into line with the rest of the United Kingdom and the Republic of Ireland on age of sale, with effect from 1 September this year.

Smoking is well recognised as the single greatest cause of premature death and avoidable illness in Northern Ireland, claiming some 2,300 lives here each year. It is a major risk factor in coronary heart disease, strokes, cancer and other diseases of the circulatory system, which kill two in every five men and women here. Those diseases are also leading causes of disability. A lifetime non-smoker is 60% less likely than a current smoker to have coronary heart disease and 30% less likely to suffer a stroke. Smoking is also a major cause of health inequalities and is the principal cause of the gap in life expectancy between rich and poor. For example, instances of lung cancer are 71% higher in deprived areas.

Although much work remains to be done, we are having some success in reducing adult smoking prevalence, which is currently 25% — the lowest figure since the continuous household survey began in 1983. Significantly, 79% of adult smokers in Northern Ireland took up the habit in their teens, and 11% of children aged between 11 and 15 here are regular smokers. If we are to achieve a significant reduction in smoking prevalence, we must deter young people from taking up the habit. That is why I recently agreed the inclusion of Northern Ireland in a Department of Health-led public-consultation exercise on the future of tobacco control. The consultation seeks views on a range of issues that are likely to impact on children’s smoking, including advertising at point of sale and access to tobacco-vending machines. I also intend to introduce proposals in due course that will impose sanctions on retailers who persist in selling tobacco to underage customers. That is important, because research in England found that 57% of children obtain their cigarettes from shops.

I have no doubt that controls already in place, such as smoke-free enclosed public places and workplaces, will have a positive impact on reducing smoking prevalence, especially among young people. My Department provided resources to facilitate the appointment of additional enforcement officers to maximise compliance with smoke-free legislation from April 2007. That funding is continuing and is linked to enhanced enforcement activity on underage sales. Our ‘A Five Year Tobacco Action Plan 2003-2008’ identifies children and young people as a key target group. That will remain an important element of the plan as my officials begin the review process, with the aim of rolling out the plan for a further five years. In developing the plan, my officials will continue to consult the statutory- and voluntary-sector agencies on how best to discourage young people from adopting the habit.

Members will be aware that I launched a 12-week consultation exercise on 29 October 2007 to help me to assess the public’s view on the age of sale. I am pleased to say that the consultation elicited 90% support for increasing the legal age of sale to 18. Members will also recall that the Assembly debated that issue in November last year and strongly supported increasing the age of sale to 18. In that debate, I gave a commitment to bring to the Assembly any proposals to increase the age of sale. The motion fulfils that commitment, and I believe that I have the Assembly’s support for increasing the age of sale of tobacco to 18.

The Chairperson of the Committee for Health, Social Services and Public Safety (Mrs I Robinson): The Committee for Health, Social Services and Public Safety is grateful to officials from the Department who briefed Members at a meeting on 17 April 2008 on the proposals. The Committee fully recognises that smoking is the greatest preventable cause of death and illness, and welcomes any measures that will help to discourage young people from starting to smoke in the first instance.

The Chief Medical Officer’s annual report, which was published just last week, showed that almost 80% of adult smokers started smoking in their teens and that an alarming 11% of children aged 11 to 15 are already regular smokers.

The Committee also supported the introduction of the smoking ban in public places last year. The draft regulations that are before the Assembly, which propose to increase the age at which cigarettes may be sold legally from 16 to 18, were considered and agreed by the Committee at its meeting on 19 June. As the Minister explained, the aim of the draft regulations is to make it more difficult for young people to obtain cigarettes and to make the sale and availability of cigarettes among young people less culturally acceptable. I support the motion.

Mr B McCrea: I am vehemently anti-smoking — at any age. The Minister of Health, Social Services and Public Safety explained the detrimental effect that smoking has on the lives of young and old people, and the rest of society. I realise that in making such a strong statement, there might be some concern about the 25% of people who do smoke. It is not my intention to criticise those people, but, as the Minister and the Committee Chairperson said, one must consider the age at which people start to smoke. Tobacco smoking is addictive, and many people start to smoke cigarettes when they are young.

Research carried out by the Health Promotion Agency revealed that 50% of children in forms 1 to 5 tried smoking cigarettes before the age of 13. The evidence also confirms that the younger children are when they first try smoking, the more likely they are to become regular tobacco users and the less likely they are to quit.

The Minister also stated that the number of deaths in Northern Ireland that are directly attributable to smoking is somewhere between 2,300 and other higher estimates. The most common age at which people start to smoke is 12 or 13; at that age, young people do not see themselves as real smokers but as social smokers. That is the age at which they should be offered some protection. Retailers also face the difficulty of trying to work out what age young people actually are.

The emphasis that is placed on alcohol consumption and the sale of alcohol to minors is astonishing, because tobacco is the one product that is guaranteed to kill, even if it is used in moderation. That is why the Assembly must be strong in trying to convey a message that zero tolerance will be exhibited against those who sell cigarettes to young folk.

I acknowledge the Minister’s initiatives on this issue, but I hope that he will consider further measures. Perhaps, in his winding-up speech, he will comment on the sale of 10-packs of cigarettes — the purchase of which are prevalent among children — and retailers’ practice of selling individual cigarettes to children on their way to school. There is a case for secret shoppers or some other initiative to stamp out such practices, because their impact on young people is so severe. I thank the Minister for introducing the proposal, and I support the motion.

Mr McCarthy: I support the motion, as have other Members. The statistics provided to the House by the Minister are horrendous, and they affect every member of society. Smoking is, undoubtedly, a killer, and our Government have come a long way in tackling the scourge. Cancer is a hellish disease, and, if we can prevent our young children from smoking, we will have achieved much.

The motion goes some way to putting tobacco products out of the reach of children, and I am sure that Members will support the Minister’s proposal.

I take this opportunity to say that I support the next item on the Order Paper, which is also smoking related.

Mr Speaker: Order. We will deal with one issue at a time.

The Minister of Health, Social Services and Public Safety: I am grateful to the Chairperson of the Committee for Health, Social Services and Public Safety, Iris Robinson, and other Members who participated in the debate for their comments and support. Basil McCrea mentioned the availability of 10-packs of cigarettes and the sale of individual cigarettes, and he asked how the Department intended to stamp out such practices.

We are doing that through a mixture of public information, education and enforcement: I am dealing with enforcement in consultation with colleagues in the rest of the UK, and I am looking to the next phase of the tobacco action plan, which is under review.

I recognise that raising the age of sale will not, by itself, solve the problem of children smoking; rather it will compliment improved enforcement activity and the ongoing prevention work that is being undertaken by agencies, including health boards and trusts, the Health Promotion Agency, the education sector and the Ulster Cancer Foundation. It also represents an important milestone in the construction of what we all hope will be a solid platform to help us to reach our long-term goal of a tobacco-free society in Northern Ireland.

Question put and agreed to.

Resolved:

That the Draft Children and Young Persons (Sale of Tobacco etc.) Regulations (Northern Ireland) 2008 be approved.

Draft Smoke-Free (Exemption, Vehicles, Penalties and Discounted Amounts) (Amendment) Regulations (Northern Ireland) 2008

The Minister of Health, Social Services and Public Safety (Mr McGimpsey): I beg to move

That the Draft Smoke-Free (Exemption, Vehicles, Penalties and Discounted Amounts) (Amendment) Regulations (Northern Ireland) 2008 be approved.

I am seeking the Assembly’s approval to introduce the aforementioned statutory rule, which arises as a consequence of the previous motion. Subject to the Assembly’s approval, the statutory rule will substitute the words “aged 18 years” for the words “aged 16 years” in the Smoke-Free (Exemptions, Vehicles, Penalties and Discounted Amounts) Regulations (Northern Ireland) 2007. That means that under the smoke-free legislation, the existing provision whereby smoking may be permitted in a designated room in specified residential accommodation used by persons aged 16 years or over, will be amended to read “aged 18 years or over”. I commend the motion to Members.

The Chairperson of the Committee for Health, Social Services and Public Safety (Mrs I Robinson): On 19 June, the Committee for Health, Social Services and Public Safety considered the draft regulations and strongly supported the provisions. I support the motion.

Mr B McCrea: I want to bring to the attention of the Minister and Members the positive outcomes that have been achieved since the banning of smoking in public places of work. On Friday 30 May, I attended a meeting at which the Chartered Institute of Environmental Health reported that following the introduction of the smoking ban, there were significant improvements in air quality. Research by the Ulster Cancer Foundation found that the exposure of bar workers to second-hand smoke fell by 94%. In the home, and socially, exposure to second-hand smoke fell by two thirds.

Most importantly, the effects were felt by the people themselves — bar workers reported an astounding improvement in their health, with 33% reporting less eye irritation, runny noses, sore throats, coughs and other significant improvements in their health. I, therefore, commend the Minister for his action.

The Minister of Health, Social Services and Public Safety: I thank Mrs Robinson and Mr McCrea for their positive responses. As Mr McCrea said, there are already positive outcomes flowing from the legislation that we have put through, and I believe that that can be reinforced by the measures that we have agreed today.

Question put and agreed to.

Resolved:

That the Draft Smoke-Free (Exemption, Vehicles, Penalties and Discounted Amounts) (Amendment) Regulations (Northern Ireland) 2008 be approved.

Committee Business

Statutory Committee Membership

Mr Speaker: As with similar motions, the motion on Statutory Committee membership will be treated as a business motion. Therefore, there will be no debate.

Resolved:

That Mr Ian Paisley Jnr replace Mr Mervyn Storey as a member of the Committee for Finance and Personnel. — [Mr Weir.]

1.45 pm

Mr Speaker: It is obvious that business in the House has moved on faster than some Members realise. I ask that Members take their ease for a few minutes.

Rising Energy Costs

Mr Speaker: The Business Committee has agreed to allow up to two hours for this debate. The proposer of the motion will have 10 minutes to propose and 10 minutes for the winding-up speech. All other Members who wish to speak will have five minutes.

The Chairperson of the Committee for Enterprise, Trade and Investment (Mr Durkan): I beg to move

That this Assembly notes with concern that rising energy costs are hitting families in Northern Ireland harder than in the rest of the UK; and calls on the Executive to:

(i)  give further priority to measures to promote energy efficiency and combat fuel poverty;

(ii) drive a coordinated energy policy to diversify our energy supplies, reduce our reliance on fossil fuels, increase competition in our energy market and harness the full potential of renewable energy;

(iii)          cooperate with other Governments, including through the British Irish Council, to develop a longer-term strategy for these islands, and;

(iv)           urge the UK Government to re-direct the windfall VAT revenue from higher energy bills to be used to mitigate the escalation of fuel poverty in Northern Ireland”.

I welcome the opportunity to debate rising energy costs. It is the first motion that the Committee for Enterprise, Trade and Investment has tabled for debate. The Committee has received a substantial amount of evidence from a number of key stakeholders. It is unanimous in its concern that urgent steps must be taken by the Executive to address what is fast becoming a critical situation.

From evidence supplied to the Committee, it is obvious that the increase in energy prices is a complex issue that touches every family and business in Northern Ireland. Today’s debate is timely, given the escalation of energy costs and the news that senior energy industry insiders predict further increases of up to 40% this year. That, according to figures outlined in Westminster last week, could plunge an additional 1·6 million people across the UK into fuel poverty, and the Bank of England has warned consumers to brace themselves for:

“the most difficult economic challenge for two decades.”

As recently as last Thursday, the Organization of the Petroleum Exporting Countries (OPEC) warned that oil prices could soar to as high as $170 a barrel in the summer, bringing further misery to consumers and additional stress to businesses. In evidence to the Committee, the utility regulator warned that the spike in energy prices is not a temporary blip; the supply-and-demand and political factors that lie behind the crisis will continue in the long run.

Northern Ireland faces sharp increases in the wholesale prices of gas, oil, electricity and carbon. Coal prices are also at record levels, partly influenced by the cold winter in China. Normally, China is a substantial exporter of coal, but it did not export enough last winter. In the medium to long term, other global factors must be considered, such as the emergence of massive new markets in China and India and the globalisation of gas prices. Liquefied natural gas will become the marginal unit, as it can be transported in a way that pipeline gas cannot. Politically, the EU is tightening its emission limits, and that, coupled with political uncertainty in the Middle East and Russia, is causing energy prices to reach boiling point.

The utility regulator assured the Committee that only genuine costs are passed on to consumers and that he will continue to bear down on monopoly costs. However, he warned that if Northern Ireland is to address the energy crisis and successfully combat fuel poverty, it must change its ways.

I do not wish to pre-empt Members from focusing on the effects of rising energy prices, it is equally important to talk about promoting energy efficiency as a means of combating fuel poverty, which is a bigger problem in Northern Ireland than in other regions of the UK, partly because of relatively low incomes and the higher cost of fuel. In 2006, some 34% of people here were deemed to be living in fuel poverty, and the Consumer Council has warned that the increase in fuel prices will cause that figure to rise sharply to over 40%.

The Committee acknowledges the work of the fuel poverty task force and its progress in identifying the fuel poor. Alarmingly, however, a recent Audit Office report on the warm homes scheme confirmed that 30% of the grants went to homes that were already energy efficient and to those who were at little risk of fuel poverty. The report went on to state that significant numbers of the fuel poor were being excluded from assistance, including the low paid and those who are eligible for, but do not claim, benefits. The Committee requests that the task force urgently examine the report’s recommendations.

Another energy efficiency issue is that the Reconnect scheme that provided grants of up to 50% to householders to install renewable energy systems has ended, and the Committee urges the Executive to undertake an evaluation of that situation as a matter of urgency.

The Committee unanimously supports a co-ordinated energy policy. The challenge faces not only Northern Ireland but all people and Administrations throughout these islands, and a co-ordinated energy policy is required to diversify energy supplies, increase competition in the energy market and harness the full potential of renewable energy.

Northern Ireland’s reliance on fossil fuels is of concern: 70% of consumers burn oil as their main source of heat. Northern Ireland uses more carbon-rich fuels than anywhere else in the UK and its consumers are, therefore, more exposed to carbon costs than elsewhere in the UK or Ireland.

Importing fossil fuels presents its own risk. There is increased competition for energy resources in the face of growing global energy demand. Increasingly, reserves are concentrated in fewer, further away places and in markets that are neither transparent nor truly competitive. To ensure security of supply, a co-ordinated energy strategy is needed to maximise the economic production of our domestic energy sources, which, together with co-ordinated energy-saving measures, will greatly reduce our dependence on energy imports.

Only last week in Westminster, I attended an event that examined fuel poverty throughout the UK. There, a key player in the energy sector, speaking on UK policies, said that the strategy of having no strategy was not working and that the whole emphasis of public policy over the years, which amounted to reliance on market solutions, was not enough. Other, more active interventions and co-ordinating measures are needed. That is why the motion raises issues not just at a regional level but at a British-Irish level.

Increased competition in our energy market is vital. The Committee welcomes the utility regulator’s efforts to address monopoly costs and his assurance that substantial costs have been removed from the gas network. However, we urge that measures be taken to encourage greater competition. Such measures are a necessary vehicle for maintaining efficiency incentives and ensuring that consumers benefit from any improvements further up the value chain.

More efficient use of the all-island gas infrastructure is urgently required. The acceleration of gas roll-out will help to drive out use of the most carbon-intensive fuels and reduce dependency on oil. Of all the fossil fuels, natural gas is the cleanest and most environmentally friendly. Compared with oil, it emits over 30% less carbon dioxide, and compared with coal, it emits over 50% less. Given those benefits, the Committee was concerned to hear from Firmus Energy of continued delays in connecting to the gas network in the public-sector estate and delays in releasing funds to complete the Northern Ireland Housing Executive’s heating-replacement programme. We urge the Executive to consider that issue, given the significant contribution that gas can make to reducing Northern Ireland’s CO2 emissions.

In the longer term, most important may be the need to harness the full potential of renewable energy. However, great challenges lie ahead. In the west, the grid is weak and is not currently capable of receiving the large expansion of wind generation that is likely to be required. Our planning system is also a worry — it will make it difficult to respond rapidly to change. There is only one interconnector with Great Britain, and only one other is planned. Even with two interconnectors, it is questionable that that will be sufficient to facilitate the use of Northern Ireland’s large wind-energy resource.

To achieve all that, and in order to develop a longer-term energy strategy for these islands, it is crucial that greater co-operation with other Governments takes place. That should include co-operation through the British-Irish Council and North/South structures.

The Committee urges the Executive to challenge the UK Government to use the estimated £10·5 million of extra VAT revenue that is forthcoming as a result of rising fuel prices to help vulnerable households this winter. The Committee identified those moneys because it did not want the motion to demand that the Executive make more money available from their hard-pressed Budget, but to point the Executive in the direction of other revenues for which they could lobby. The word from the Treasury is that it is not interested in making that money available. However, the Treasury also recently insisted that it would not address or revise tax issues but, as a result of political pressure, it had to do so. Therefore, we urge the Executive to bring those issues directly to the Treasury.

Mr Hamilton: As the Chairman said in his opening remarks, this is a big issue. Individual Members take it seriously and the Committee for Enterprise, Trade and Investment took it extremely seriously, as is evidenced by the mammoth amount of evidence that it took over the past few weeks.

Members have only to go to their constituencies and talk to folk to realise how important rising energy costs are to people’s everyday lives.

The gravity of the problem is demonstrated by the fact that, in the height of summer — such as it is in Northern Ireland — we are discussing rising fuel costs. Had the debate occurred in a particularly bad, cold winter, we may have been able to see past the massive percentage increases that we have been experiencing. For example, the price of gas has increased by 28%, coal by 25%, electricity by 14%, and that, indeed, may increase further before the end of the year. The price of oil is at a record high. Those increases are bad at any time, but this time of year only accentuates the severity of the problem.

2.00 pm

The motion deals quite properly with the problem and suggests how it could be dealt with in the short and longer term. Similar to any such difficulty that creeps up and hits us like this, there are short-term problems that require short-term solutions. However, we should not be foolish enough not to consider the long-term measures that will be needed to overhaul our whole approach and attitude towards our energy supply.

Fuel poverty will be raised time and again during the debate. I represent Strangford, which most perceive to be a fairly well-off constituency. However, even in a constituency such as that there are, according to the most recent estimates, some 7,000 households living in fuel poverty. That is approximately one quarter of the total households in Strangford. Indeed, that figure can only rise, given what is happening more widely with the price of fuel.

I welcome the existence of an Executive subcommittee on fuel poverty. The Chairperson of the Committee for Enterprise, Trade and Investment mentioned the Audit Office’s criticisms of the warm homes scheme. Those criticisms aside, I am thankful that that scheme exists and that it has been able to alleviate some people’s problems and take others out of fuel poverty. There is more good than bad in the scheme, and now that difficulties and issues have been identified, they can — and should — be overcome.

Although the motion does not specifically mention the winter fuel allowance, it has not risen in line with the rise in fuel costs. A windfall levy on VAT should be considered. The Government may argue that falling prices in the construction industry have resulted in their losing revenue in areas such as stamp duty. However, it is evident that there is potential to use the massive amount of VAT that is made on fuel of all kinds in order to help alleviate fuel poverty.

(Mr Deputy Speaker [Mr Molloy] in the Chair)

Longer-term solutions are also required, and we in Northern Ireland must play our part by taking a longer-term approach to rising fuel costs. As the Committee Chairperson said, the utility regulator, in a sobering evidence session before the Committee for Enterprise, Trade and Investment, indicated that price rises will not slide away and return to normal, whatever that means. We will see such price rises time and again unless action is taken.

Opening the Northern Ireland market to competition would be a powerful tool, but in many respects, our energy market is too immature for that. However, the real potential lies with renewable forms of energy.

It is almost the set answer when discussing matters such as this to suggest that renewables are the future and the answer. However, that point is particularly important in Northern Ireland, not because renewables have the potential to ease some of our difficulties, but because of the potentially massive economic advantages that Northern Ireland has in renewables. Indeed, we could be the Saudi Arabia — so to speak — of wind power, and wave energy also has huge potential. I support the investment that is required to bring our electricity grid up to the standard that would allow it to deal with some of those renewables. We are still at a low level, but it will take massive investment to do that. That investment is certainly required.

The motion calls for intergovernmental co-operation, which I support. We are a very small part of the world, and if we cannot solve the problem on our own, we will need to work with neighbouring Governments, our own Government in Westminster, and the European Union.

Mr McLaughlin: Go raibh maith agat, a LeasCheann Comhairle. I speak today in my capacity both as the Chairperson of the Committee for Finance and Personnel and as an individual MLA.

I welcome the Committee report and the debate, which is timely in the context of the spiralling energy costs that have exposed our heavy reliance on fossil fuels and highlighted the pressing issue of fuel poverty. The debate also intensifies the focus on climate change and sustainable development.

The issues that are encapsulated in the motion are cross-cutting at governmental and departmental levels. A not-so obvious but important example relates to building regulations, which were studied in detail by the Committee for Finance and Personnel, of which I am Chairperson. As part of its consideration of the Building Regulations (Amendment) Bill, the Committee published a report, which Members received during the past week. That report contains recommendations that apply to the themes of this debate, such as promoting energy efficiency and harnessing the potential of renewable energy.

While scrutinising the Bill, the Committee took evidence from stakeholders, including the Energy Saving Trust, Northern Ireland Environmental Link and the Sustainable Energy Association. Their evidence highlighted the immediate and longer-term challenges to the Executive that are posed by our reliance on fossil fuels. As well as climate change and sustainable development, those challenges include fuel poverty and cost-of-living increases, which all MLAs are addressing at constituency level.

In its evidence, Northern Ireland Environmental Link pointed out that energy use in buildings represented 81% of non-transport-related energy consumption, with oil the primary heating fuel. It emphasised the importance of diversifying sources of energy and of reducing energy consumption, particularly in the face of increased oil prices and issues of security of supply. It is worth noting that only 4% of our electricity comes from renewable sources. Less than 1% comes from indigenous renewables, to which Mr Hamilton referred.

The Committee for Finance and Personnel concluded that building regulations can play an important part in achieving increased renewable-energy targets. The Committee wants building regulations to be used to encourage the take-up of renewable energy technologies. Incentives must be provided. It is imperative that the relevant industries respond to that demand.

The Committee has made proposals on how to stimulate demand for renewable-energy technologies. Those proposals include developing the capacity of the local renewables industry to support commercialisation.

The evidence also highlighted the critical role of planning policy in promoting renewable energy through, for example, granting development rights for small-scale renewable systems and for micro- and macro-generation schemes, such as community heat networks and larger-scale wind generation for new housing developments.

Economics and environmental concerns are forcing serious consideration of such issues. The Committee also considered evidence about how progress is being made on that matter, south of the border. Committee members welcomed the fact that local planning services were seriously considering those issues.

Bearing in mind how important it is to stimulate demand for renewables and to support the early-adopter market, the Committee called on the Finance Minister to work with his Executive colleagues to ensure that priority be given to funding in order to encourage the uptake and development of renewable-energy technologies.

In highlighting the relevance of the work of the Committee for Finance and Personnel to the matters under debate, I support the call for windfall VAT revenues from higher energy bills to be returned to the Assembly and Executive in order to mitigate fuel poverty. The Committee recently raised a range of measures that the Executive might consider in an effort to help to ease increases in the costs of living and the hardship imposed on many households by rising energy and fuel prices.

I support the motion and I look forward to hearing other contributions to the debate.

Mr Cree: It is not an exaggeration to say that Northern Ireland — indeed, the entire United Kingdom — is heading towards an energy crisis that will mean extreme hardship for the most vulnerable people and families this winter.

However, increasing energy prices, coupled with increases in the cost of food and consumer goods, is having a serious impact on all hard-working families, many of whom will be facing fuel poverty.

It has been estimated that average bills will have increased by 61% by the end of this year. That is an unprecedented increase that will have a crippling effect on many households, who will face stark and tough choices. Businesses, and even Government services, are also struggling with the increased costs. The problem is greater in Northern Ireland as we have lower wages and higher energy costs than the rest of the United Kingdom.

It is vital that we take steps to reduce the outlay of the thousands of families and businesses that are struggling with energy costs. Historically, Northern Ireland has had a non-competitive energy market, so I applaud the steps taken towards creating a single electricity market by the previous Minister of Enterprise, Trade and Investment and that Department. Equally, steps that have been taken to open up the natural-gas market should be applauded.

Although much of the groundwork for producing a competitive electricity market in Northern Ireland has been done, we must ensure that that work results in genuinely open competition that will give consumers more choice and make prices more economical. Currently, such competition does not exist. It is, therefore, vital that we continue to work with our British and Irish counterparts to ensure the long-term success of our fledgling energy market and our future energy policies.

The more energy efficient that people’s homes and businesses become, the less energy they will have to use, which will therefore reduce their energy bills. It is thought that, in the UK, a typical house is using five times the energy that it should. The warm homes scheme should be commended; however, the delivery of that scheme could be improved. We must guarantee that those who are most in need benefit from the scheme, especially in the run-up to winter.

It is crucial that all households and businesses do what they can to conserve energy. We must instil an ethos of improving energy efficiency throughout society. As an Assembly and an Executive, we must set an example and provide all the necessary information and help to those families and businesses seeking to improve their energy efficiency. Building regulations and the planning review have crucial strategic roles, as do sustainable development strategies, which must ensure that we have the most energy-efficient and environmentally friendly development.

In Northern Ireland, we are overwhelmingly reliant on fossil fuels for our energy needs. As the price of a barrel of oil has now reached $140, we are all feeling the pain of such reliance. In the long term, it is crucial that we become less dependent on fuel imports. We must increase the security of our energy supply. By diversifying into renewable energy sources, we can simultaneously meet our EU climate change and renewable energy obligations.

As we all know, climate change is one of the most pressing problems facing the world today and, regardless of anyone’s opinion on it, renewable energy is the direction in which Europe is looking for a large proportion of its energy supply. Northern Ireland now has an immense opportunity for the development of that sector; however, to date, we have been sleepwalking behind the Labour Government on the issue. The launch of a consultation on the UK renewable energy strategy is a great opportunity to place Northern Ireland at the forefront of renewable technology and development in the UK and Europe. The Executive must ensure that we are represented in any future renewable strategy and policy. In 10 years’ time, for example, we do not want a situation in which the British renewable markets have developed while we in Northern Ireland are as reliant as ever on fossil-fuel energy production.

We cannot simply assume, however, that all our energy needs can be met by renewable technology and production, because they will not. In order to reach the EU target of 15% energy production from renewable sources, we must increase our renewable production tenfold. That is a highly ambitious target.

The final point in the motion causes some difficulties for the Ulster Unionist Party. We are curren