Committee for the Economy

Minutes of Proceedings Wednesday 20 March 2024

Committee for the Economy Minutes of Proceedings 20 March.pdf (174.49 kb)

Meeting Location: Room 30, Parliament Buildings, Belfast  

Present:                   

Mr Phillip BrettMLA (Chairperson)          

Mr Gary Middleton MLA (Deputy Chairperson) 

Mr Jonathan Buckley MLA

Mr Pádraig Delargy MLA

Ms Sorcha Eastwood MLA

Mr David Honeyford MLA

Ms Sinéad McLaughlin MLA

Mr Mike Nesbitt MLA

Present via teleconference:

Mr Philip McGuigan MLA

Apologies:               

None

In Attendance:       

Peter McCallion (Assembly Clerk)

James Gilsenan (Senior Assistant Assembly Clerk)

Craig Mealey (Clerical Supervisor)

Michael Doran (Clerical Officer)     

The meeting commenced in closed session at 9:30 am.

Ms Eastwood joined the meeting at 9:31am

Proceedings moved into public session at 9:31am with a revised order of agenda items

1.    Apologies

There were no apologies.

2.    Declarations of Interests

There were no declarations of interest.

3.    Chairperson’s Business

The Chairperson advised Members that in Written Answers, the Minister had advised of research into air connectivity which is to be complete before the end of this month.

Agreed:    The Committee agreed to write to the Department seeking the relevant findings and sight of the associated report in respect of the Written Answer above.

4.    Draft Minutes

Agreed:    The Committee agreed the minutes of the meeting of 13 March 2024.

5.    Matters Arising

There were no matters arising.

6.    The Education (Student Loans) (Repayment) (Amendment) Regulations (Northern Ireland) 2024

The Committee noted the statutory rule SR 2024 / 55 The Education (Student loans) (Repayment) (Amendment) Regulations (Northern Ireland) 2024.

Mr Honeyford made a declaration of interest as 2 of his children are in receipt of student loans but are not currently domiciled in Northern Ireland.

Agreed:    “That the Committee for the Economy has considered The Education (Student Loans) (Repayment) (Amendment) Regulations (Northern Ireland) 2024 and subject to the ESR’s report, has no objection to the rule.”

7.    Correspondence

7.1 Index

Noted:      The Committee noted an index of incoming correspondence.

7.2 North West Funding

Mr Buckley joined the meeting at 9:35am

Noted:      The Committee noted a Departmental response to Committee queries in respect of £151m of funding packages for the North West and indicating that the model for delivering additional undergraduate places in the North West will be set out shortly.

7.3 Azores Judgement

Ms McLaughlin joined the meeting at 9:36am

Noted:      The Committee noted a response to Committee queries indicating that the Department believes that a different corporation tax rate for goods (and likely also in respect of services) would probably not fall foul of the Azores judgement and thus not be considered to be State Aid - provided the NI block grant accepts the full consequences of the reduction in corporation tax and receives no offsetting UK Government subsidy.

The Chairperson also noted the Minister’s reference during Question Time on 19 March 2024 to the development of an all-Ireland rate of corporation tax.

7.4 Project Stratum / Project Gigabit

Noted:      The Committee noted a response to Committee queries regarding Project Stratum and Project Gigabit including in respect of possible redundancies in Fibrus Ltd. The Committee noted that a substantial change in the level of employment at Fibrus Ltd. is not expected and that the Department has not yet completed the business case for Project Gigabit but will award the contract towards the end of 2024.

7.5 Good Jobs

Noted:      The Committee noted a very limited Departmental response in respect of what is meant by “good jobs” and what metrics and indicators could be employed in this regard.

7.6 Dual Market Access Research

Noted:     The Committee noted a Department response in respect of dual market access research which has been undertaken by the Department in respect of the degree of regulatory intensity arising from EU Single Market Directives and Regulations. The Committee noted that the related report is still in draft but will be published soon.

7.7 Further Education (FE) Pay Awards

Noted:      The Committee noted a response to Committee queries in respect of FE pay awards.

7.8 FE Delivery Model

Noted:      The Committee noted a response to Committee queries regarding the new model for the delivery of FE including a co-design process. 

7.9 Careers Guidance

Agreed:    The Committee noted a response from the Department for the Economy (DfE) in respect of careers guidance and agreed to write jointly to the Department of Education (DE) and DfE asking those departments to explain jointly how careers education, information, advice and guidance is provided in a joined-up way across all phases of education and beyond.  The Committee also agreed to share all relevant correspondence with the Committee for Education.

7.10 Apprenticeship Awards

Agreed:   The Committee noted a Departmental invitation to the Chairperson to attend the Apprenticeships Awards on 27 March 2024 and agreed that it was content for the Chairperson to attend, diary permitting.

7.11 EU Regulation 2023 2411

Noted:      The Committee noted correspondence in respect of EU Regulation 2023/2411 which was debated in the Assembly on 19 March 2024.

7.12 Single Electricity Market

Noted:      The Committee noted correspondence in respect of the Single Electricity Market and proposed EU changes which may refer.

7.13 Consolidated Fund

Noted:      The Committee noted correspondence from the Committee for Finance on the Consolidated Fund.

7.14 Examiner of Statutory Rules (ESR)

Noted:      The Committee noted the 4^th report of the ESR.

7.15 Competition and Markets Authority (CMA)

Noted:      The Committee noted the Competition and Markets Authority Annual Plan 2024-25.

7.16 Renewable Energy

Noted:      The Committee noted correspondence from a concerned individual to the Minister in respect of renewable energy.

7.17 Higher Education – Section 75

Noted:      The Committee noted correspondence from a concerned individual in respect of Higher Education and Section 75 matters.

8.    Forward Work Programme

The Committee considered a draft of its Forward Work Programme.

Mr Delargy joined the meeting at 9.48am

Agreed:   The Committee agreed that the Chairperson would write to the Speaker seeking access to the plenary chamber for a joint concurrent meeting with the Committee for Education.     

Agreed:   The Committee agreed to invite Advice NI to brief on the reform of the Debt Relief Order.

Agreed:   The Committee agreed its Forward Work Programme, as amended.     

Committee proceedings were suspended at 9:52am

Committee proceedings resumed at 9:54am

9.    Ministerial Oral Briefing

The Committee noted briefing papers from the Department.

The Minister and his officials joined the meeting at 9:54am    

The Committee received a briefing from:

Conor Murphy MLA - Minister for the Economy

Sharon Hetherington - Finance Director, Department for the Economy;

Johanna Park - Head of Financial Management, Department for the Economy.

Key issues discussed included: City Deals; ALB returns on investment; funding apprenticeships; the new fiscal framework for Northern Ireland; the skills gap; appropriate careers advice; definition of a ‘good job’; renewable energy incentives; corporation tax; the Electronic Travel Authorisation (ETA) scheme; recent St Patrick’s Day engagements in Washington DC; Investment Zones; and regional economy imbalances.

Mr Buckley left the meeting at 11.04

The Chairperson thanked the Minister and his officials for their briefing.

The Minister and his officials left the meeting at 11.18am.

Agreed:    The Committee agreed that the Chairperson would write to the Minister indicating the Committee’s disappointment that the oral evidence session was shorter than expected and that consequently Members struggled to ask questions and receive answers in respect of areas of interest.  The Committee further agreed to ask the Minister to brief the Committee again on 22 May 2024.

Agreed:    The Committee agreed to write to the Department seeking clarity in respect of:

- the Department’s plans to bring forward a renewable energy incentive scheme for micro and mini-generators producing in the range 0 to 0.5MW and 0.5MW to 5MW;

- the £40m increase in grant-in-aid funding in 2023-24 and the £15m slippage in respect of NICS wide energy schemes; and

- the status of the recommendations of the independent review into careers guidance.

Agreed:    The Committee agreed to invite representatives from the Invest NI companies including Aflac NI who attended the St Patrick’s Day event in Washington to brief the Committee.

10.  Any Other Business

There was no other business.

11. Date, Time and Place of Next Meeting

The next meeting of the Committee for the Economy will be at 10am on Wednesday 10 April 2024 in Room 30, Parliament Buildings.          

Proceedings continued in closed session from 11.18am

12. Strategic Planning

The Committee noted a planning briefing paper.

Agreed:    The Committee agreed to seek an oral and written briefing from the Further Education colleges in respect of the challenges that the sector is facing including competition with schools and the outworking of the voluntary redundancy scheme.

Agreed:    The Committee agreed the way forward in respect of its scrutiny priorities for the next few months.

The meeting was adjourned at 11.38 am.

Phillip Brett MLA   

Chairperson, Committee for the Economy    

10 April 2024