Northern Ireland Assembly, 11 June 2012

231 contributions from 66 members. The official report.

Assembly Business

Maurice (DUP, Fermanagh and South Tyrone)

Mr Speaker, if it is in order, may I move the suspension of Standing Orders to permit the House to sit after the normal sitting time?

William Hay (Speaker, Foyle)

Let us, Lord Morrow, come on to that issue. First, I have some information for the House, and I want to deal with that.

Executive Committee Business

William Hay (Speaker, Foyle)

I wish to inform Members that the Pensions Bill has received Royal Assent. The Pensions Act (Northern Ireland) 2012 became law on 1 June 2012.

Assembly Business

William Hay (Speaker, Foyle)

I advise the House that I have received a letter from Ms Martina Anderson giving me notice that she has resigned as a Member of the Assembly with effect from noon today, 11 June 2012. I have notified the Chief Electoral Officer in accordance with section 35 of the Northern Ireland Act 1998.

William Hay (Speaker, Foyle)

I have been given notice by members of the Business Committee of a motion to extend today’s sitting beyond 7.00 pm. Under Standing Order 10(3A), the Question on the motion will be put without debate.

Maurice (DUP, Fermanagh and South Tyrone)

I beg to move

That, in accordance with Standing Order 10(3A), the sitting on Monday 11 June 2012 be extended to no later than 7.30 pm.

Question put and agreed to.

Resolved (with cross-community support):

That, in accordance with Standing Order 10(3A), the sitting on Monday 11 June 2012 be extended to no later than 7.30 pm.

William Hay (Speaker, Foyle)

The motion has been agreed, and the House may sit until 7.30 pm if necessary.

Ministerial Statement

Stephen Farry (Alliance, North Down)

I am very grateful for the opportunity to make the statement today about Pathways to Success, which is the Executive’s strategy for young people who are not in employment, education or training, and its integrated action plan. The strategy builds on the Programme for Government and the Executive’s economic strategy. It is important that we enable every person in this society to develop to their full potential and that our economy utilises fully the productive human resources available to it.

Although my Department led on the development of the strategy, it is a cross-departmental initiative. It is a further demonstration of the commitment of the Executive to young people and to addressing particularly the challenge of young people who are not in education, employment or training — the so-called NEETs.

The strategy has been significantly informed by the inquiry by the previous mandate’s Committee for Employment and Learning into young people not in education, employment or training, by ongoing discussions with the current Committee and by debates in the Assembly. The Committee’s thoughts have been reflected throughout the document, and a list of its recommendations and a description of how they are to be taken forward is provided at annex B. The strategy has also been informed by the findings of a detailed consultation exercise with stakeholders, which included direct engagement with young people.

The Pathways to Success strategy will put a particular emphasis on young people, specifically those who are furthest from the labour market and face barriers to participation in learning and employment.

The number of young people here who are NEET was already rising before the recession. That challenge has obviously been exacerbated by the recession, during which the number of young people becoming unemployed has risen substantially. However, it is important to recognise the difference between youth unemployment in general and the issue of young people who are NEET and face barriers to re-engagement.

Many young people have high-level qualifications and skills and are well placed to take up employment as the economy improves: they merely lack the opportunities. Some will require minimal help to secure employment and some will just need the chance to gain experience. There are others who are much further from the labour market and require much more intensive support and more tailored interventions to overcome their barriers. Those young people are the main focus of the strategy.

The NEETs issue is a major social problem which, if not tackled, will result in young people facing a lifetime of limited opportunity, characterised by worklessness, poverty and ill health, and passing severely reduced life chances from generation to generation. It is also an economic problem. There are major costs to the public purse from young people remaining persistently trapped in the NEET category over the course of their lives. We cannot afford that haemorrhaging of vital resource to continue any longer.

Tackling the root of the issue is not the job of a single Department or organisation, as the Executive have recognised. It requires a cross-departmental approach. The Department for Learning and Employment (DEL) will take the lead, but the issue cannot be just a school, health, welfare or employer strategy: it truly belongs to everyone in our society. Indeed, a clear message of Pathways to Success is that young people have a stake and are part of the solution.

In taking forward the strategy, we want to continue to work with young people and their representatives, and add their voice to the process of delivery and implementation. That is not just my commitment, it is the Executive’s. The strategy will be a key plank of the Delivering Social Change framework to achieve a sustained, long-term reduction in poverty and an improvement in children and young people’s health, well-being and life opportunities.

The strategy’s overall aspiration is that, by 2020:

“Every young person will not only have an opportunity to access education, training or other preparation for employment but, to the extent that they are able, they will also avail of that opportunity.”

The strategy will deliver that vision through a three-tier package of measures aimed at preventing young people from missing opportunities for education and training and/or becoming unemployed; helping young people aged 16 to 18, especially those facing barriers; and assisting unemployed young people aged 18 to 24 more generally.

To deliver that package, the strategy contains measures to improve leadership and co-ordination, preventative measures being taken across Departments, measures to re-engage 16- to 18-year-olds; measures to re-engage 18- to 24-year-olds; and further supporting measures to be taken across Departments. It also sets out a number of key supporting measures to ensure that we can identify our young people’s needs and match them with opportunities to meet those needs.

I will now outline a number of the main measures, for which I am directly responsible, that will contribute significantly towards the achievement of this vision. I have recognised that the Careers Service has a key role to play in supporting young people to develop effective career plans and signposting them to provision that meets their needs. To that end the Careers Service, using information available from schools, colleges, Training for Success providers and other training programmes, will case manage those young people aged 16 and 17 who drop out of provision or do not have a positive destination when they leave school. In addition, work is under way to improve the flow of information between schools and the Careers Service to help identify young people at an early age who are at risk of becoming NEET.

There is also a clear need to develop an identification and tracking system. DEL has already commissioned research to scope the potential for a Northern Ireland tracking system for young people who are in or who might enter the NEET category. I intend to have a tracking system in place by 2014. Such a system will track a young person’s progress and interactions with various Departments and agencies. It will allow all stakeholders to learn more about their particular client group and will have benefits for all concerned.

We will ensure significantly better co-ordination than there has been, and we will work to identify and meet the needs of young people as early as possible. Early interventions also involve a range of other Government services. Education is obviously one key component in ensuring that young people progress and engage further in education, employment or training. Early years provision, measures to improve educational attainment and literacy and numeracy, and raising standards in schools are of particular importance in addressing the needs of such young people.

The further development and implementation of a number of cross-departmental strategies and initiatives designed to address the needs of vulnerable children and young people and tackle barriers associated with their health and general well-being are also important. I plan to introduce a new community family support programme, which will focus on the needs of the most disadvantaged families to enable young people to re-engage with education, training or employment.

I envisage that the programme will provide support including: tackling family issues such as support for parenting and role models; support for needs that children may have and working with schools; social and economic issues, including debt management, essential skills in literacy, numeracy and ICT, money management and how to look for work; health and housing issues such as alcohol or drug abuse, co-working with health agencies, and issues around accommodation; helping those who are in work to stay in work and helping those not in work to develop skills to find work, such as writing CVs, preparation for jobs, timekeeping, and developing problem-solving skills; and identifying suitable employment opportunities.

Such a programme will require involvement from a range of Departments, including the Department of Health, Social Services and Public Safety, the Department for Social Development, the Department of Education (DE) and the Department for Employment and Learning. The objective is to pilot it in 2013 and, subject to evaluation and resources, to mainstream it thereafter. This initiative would support the development of hubs for resources for the child and family and the introduction of family support nurses. This work is also being taken forward under the Delivering Social Change children and young people programme.

I will now turn to measures specifically for 16- to 18-year-olds. Although it is clear that current DEL and DE provision is comprehensive and the overall level of activity is demand led, current provision may not fully meet the needs of some of our most vulnerable young people. The consultation exercise and the Committee for Employment and Learning’s inquiry highlighted in particular the importance of effective signposting and the key difference that a mentoring approach could make in ensuring that young people become and remain engaged throughout the progression from education to employment and training.

Although much of what follows is intended to be additional to existing provision, many programmes and strategies, such as essential skills provision, the Training for Success programme and courses at further education colleges are also highly relevant, in addition to the role of the Careers Service, as I mentioned.

The programme envisaged will consist of four key new measures to assist those young people with barriers who are furthest away from the labour market. Those are a community-based access programme; further promoting the development of individual action plans; the introduction of a training allowance for young people participating on existing European social fund programmes targeted at those who are NEET; and the development of an innovation fund to test new approaches based on sound evidence.

The community-based access programme will engage and mentor young people using community and voluntary sector organisations. The organisations will provide continuity of support for young people to engage or re-engage with learning and to progress through mainstream training provision into employment. Individual action plans will be introduced for 16- to 18-year-olds participating in the community-based access programme. That will mean that a young person can have a personalised plan that identifies his or her individual starting point and needs, and can plot a pathway through education or training to employment.

During the consultation period and thereafter, concern was expressed, including during a debate in this House, at the lack of access to educational maintenance allowance by young people participating on certain programmes targeted at the hardest to reach, when there are allowance schemes for young people at school, in further education and on Training for Success. I considered that issue, and I plan to introduce a training allowance for 16- and 17-year-olds participating on existing programmes funded by the European social fund and targeted at those who are NEET. That allowance will be designed to ensure that there are effective incentives in place for young people to progress from provision that re-engages them with learning to education and training programmes that provide the skills and qualifications to support moving into, and success in, work.

An innovation fund to test new approaches based on sound evidence would be aimed at piloting a range of other approaches to re-engage those young people in the NEET category. That could facilitate further testing of approaches, such as a work-based mentoring service, primarily with small employers, aimed at disengaged 16- to 17-year-olds not participating in Training for Success.

Turning to the interventions planned for 18- to 24-year-olds, the specific aim is to help that group to gain work experience, develop additional skills and achieve recognised relevant qualifications needed by those sectors that have the potential for further growth with regard to jobs and gross value added growth. The focus is on early intervention for those young people who have reached the age where they may be eligible for social security benefits. Members will be aware that a separate package of measures that I put forward to address youth unemployment was accepted by the Executive. Those measures are reflected in the NEET strategy.

The core elements of any new youth unemployment programme will include early intensive diagnosis of employability skills; opportunities for taster work experience for clients while on benefits; individual skills and career-focused assessments; sector-based work experience and training in areas of skills shortage; a new employer subsidy for up to one year; a new emphasis on continuing skills development and growth; and a range of new measures to help young people not in education, employment or training.

Those measures will be additional to existing provision by being targeted at skills development for economic growth. It is important to acknowledge that the measures are informed by local needs and circumstances as well as best practice from other jurisdictions, including Great Britain and the Republic of Ireland. The measures will mean that due to earlier intervention than is currently offered, skills development can begin after 13 weeks of a benefit claim rather than at 26 weeks, which is the current mandatory trigger for entry to Steps to Work for 18- to 24-year-olds.

The new measures will make provision for job-ready young people who, but for the current economic situation, would be in work and for those who are some distance from the labour market and require considerable support to address their barriers. I am also planning to include what I will refer to as a skills premium for employers: a training grant of up to £750 to assist employers offering full-time jobs with formal training costs or £300 for shorter training on accredited courses.

I have been engaging with the Finance Minister on resourcing the new initiatives. It is important to stress that, whether the additional resources are for the specific youth unemployment measures for Northern Ireland or other elements in the NEET strategy, the necessary financing decisions are matters for the Finance Minister to recommend and for the Executive to agree. Once the resourcing for the new youth unemployment measures has been agreed and the policy subsequently finalised, I will make a fuller statement to the Assembly on these particular matters.

In conclusion, we are not starting afresh in tackling these issues. All Departments already have strategies and policies in place or are working on their development, which have as their focus improving the life chances of individuals who are faced with disadvantage or barriers that prevent them from leading productive lives or from reaching their full potential. This strategy brings added value. First, it will better co-ordinate the existing and future actions of Departments. Secondly, it includes a number of new initiatives, which I have just outlined.

David McIlveen (DUP, North Antrim)

I thank the Minister for his statement on this very important issue. Minister, you mentioned that effective incentives for young people will be in place. Can you outline what incentives will be in place for employers to facilitate the training of these young people? Can you elaborate on your desire for in-house training schemes supported by your Department? Those would free employers to not necessarily be committed to an alliance with colleges, which they currently have?

Stephen Farry (Alliance, North Down)

I thank the Member for his question. He raises a number of issues. First, we are focusing on getting people re-engaged and, potentially, going into the world of work with particular incentives. I draw particular attention to the training allowance. That has been raised by a number of Members, and we have responded to that and plan to proceed. It is also about working with young people to give them a sense of understanding of the opportunities that are available to them and to encourage them to engage with the existing provision or some of the new projects that I outlined.

Employers recognise the importance of including young people, and, indeed, as many people as possible in the labour market. We all have self-interest in ensuring that we are maximising the human resources available to our economy. Businesses understand that as well as anyone else. Particularly in the new youth unemployment measures that we are hopefully going to proceed with, there will be a number of incentives for employers, including for some resources up front to help with things such as uniforms and what may be quite significant employer subsidies to encourage them to take people on. Often, employers will say that they are considering taking someone on but that it is sometimes too much of a financial risk to do so. We hope to break that vicious circle by providing that employer with a subsidy.

Finally, the Member mentioned training. We are very open to whether the training takes place off site or on site, and the key issue is that it should be accredited to give people some record of achievement and something that can be transferred. We are happy to work with people in whatever setting is most appropriate for them.

Barry McElduff (Sinn Féin, West Tyrone)

Go raibh maith agat, a Cheann Comhairle. Cuirim fáilte roimh ráiteas an Aire. I welcome the Minister’s statement, because the issue has exercised the time and mind of the Employment and Learning Committee for a long time. The Minister referred to the introduction of a new, community family support programme. What extent of contact is there already on this between the various Departments, including the Department of Health, Social Services and Public Safety, the Department for Social Development, the Department of Education and the Department for Employment and Learning? The Minister said that it will require involvement from those Departments, but can he give a sense of the extent of contact already between those Departments? How much, typically, will a training allowance for 16- to 18-year-olds amount to?

Stephen Farry (Alliance, North Down)

I thank the Member for his welcome. There already is good collaboration between Departments, and we all recognise that. However, equally, we recognise that we can do more, and we are forever striving for better joined-up government. I believe that people are committed to that.

I draw attention to work that the Office of the First Minister and deputy First Minister will do on child poverty, which will dovetail very well with this. A lot of what we are doing will sit very neatly with the ministerial subcommittee on children and young people and is part of that wider delivering social change architecture, which my Department and all the other Departments are very freely engaging with.

The Member asked about the level of the training allowance. At this stage, subject to resourcing, we anticipate that it will be somewhere in the range of £20 to £25 a week, and the rationale for that is to create an incentive for progression. We will want people to access the European social fund programmes and maximise participation, and we also want to make sure that that is not the end point for people and that they can move on to engage with other programmes, achieve higher-level qualifications and move up that skills ladder to maximise their chances of getting into work and finding secure and sustainable employment.

Sandra Overend (UUP, Mid Ulster)

I thank the Minister for his statement, which is a very welcome indication of the Executive’s focus on NEETs. As a former member of the Committee for Employment and Learning, I recognise how important that is. Can the Minister outline how the strategy will be financed? Has he submitted a business case to the Minister of Finance and Personnel? What is the likely time frame for that?

Stephen Farry (Alliance, North Down)

I thank the Member for her question and her welcome of the strategy. It very much is a cross-Executive strategy, and it certainly is a priority for the Executive, just as it is a priority for the whole Assembly.

We are very mindful of the need for resources where we need resources, but, before going into the detail of that, I stress that, in some respects, this may facilitate better working without the influx of a lot of new resources. We also need to be conscious of using what we have much more efficiently and effectively, and a strategy such as this can bring real added value. We have submitted a full business case on youth unemployment and on aspects of NEETs to the Minister of Finance. Obviously, it is up to him to deliberate on that and make recommendations to the Executive. Once they are approved by the Executive and announced, potentially as part of a monitoring round, I will come back to the House and make a fuller statement on exactly how the resources will impact on our ability to move ahead with the specific NEET issues and the youth unemployment measures in a more general sense.

Pat Ramsey (Social Democratic and Labour Party, Foyle)

I thank the Minister for bringing forward the NEETs strategy today; it is welcome. I commend the Minister. It has taken a long time for the Executive to come forward with that.

The Minister said that the tracking system will be in place by 2014. It is over two years since the Committee for Employment and Learning carried out a very exhaustive inquiry, one of the key elements of which was the deliberation on that, and everybody who participated in the consultation clearly stated that there has to be a tracking mechanism in place. Why has it taken another three years to put in place a tracking mechanism to show where our young people are going? There is a lot of emigration, and it is necessary, Minister, for you to look at this again. It is far too long down the line.

Stephen Farry (Alliance, North Down)

I thank Mr Ramsey for his general welcome of the strategy. We are committed to introducing a tracking system. There is no ambiguity with that: it will happen.

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

There are various bureaucratic issues around data sharing to be overcome, such as how we get around interpretations of data protection. As well as that, there are, potentially, some legislative issues that we may need to explore. That is the creation of the formal tracking system. Separate from that, of course, there is scope for the exchange of information between Departments and agencies without the formal tracking system being fully operational. That can happen in any event and will be accelerated from now. Members should be in no doubt that this will happen and will be in place by 2014 or sooner, if we can do that.

Chris Lyttle (Alliance, Belfast East)

I also welcome the statement and the strategic and practical response that it lays out to one of the key challenges that we face in getting education, training and employment opportunities for our young people at this challenging time. I particularly welcome the additional training allowance for the hardest-to-reach young people. I know that that will be welcomed by many people across organisations that work in this area. Given that one of the Committee inquiry’s key recommendations was that the strategy had to be cross-departmental and that OFMDFM, therefore, should have a significant involvement, how has OFMDFM, in its correspondence, suggested taking this forward in the absence of a Department for Employment and Learning?

Stephen Farry (Alliance, North Down)

I thank the Member for his general welcome and for throwing me that ever-so-subtle curve ball. There are a number of things to say. First, on the status quo of the Departments, my Department, as is, is very happy to lead on this and will continue to do so. However, it will also be placed in the context of the wider architecture that exists, including the Executive subcommittee on children and young people. It is also very much part of the wider Delivering Social Change agenda, as put forward by OFMDFM. Essentially, OFMDFM is a co-ordinating Department rather than a main delivery Department. However, it is important that we avail ourselves of existing ministerial subcommittees to ensure that all Ministers are actively engaged in implementing the strategy and are sitting round the table to hold each other to account for the delivery of the various targets.

Looking to the future, it is important that we appreciate that dealing with NEETs is both an economic and a social issue and that it primarily applies to over-16s. So, we need to take some care in ensuring that there is a proper, dedicated focus on the issue. Regardless of whether departmental structures are subject to minor reforms or more widespread reforms down the line, we must ensure that we have that clear focus on what is a very important issue for this society.

Alastair Ross (DUP, East Antrim)

I am sure that most Members will agree that prevention is better than cure. To that extent, early identification and intervention, with a focus on early years education, are extremely important.

I return to the tracking system. The Minister mentioned some of the concerns that there may be around data protection and things like that. How does the Minister envisage it working? What practical interventions does he believe could be made, once it is established which young people are at risk of going into the NEET category?

Stephen Farry (Alliance, North Down)

I thank the Member for his questions. He, rightly, referred to the importance of prevention and early intervention. In the earliest sense, you can apply that to what happens in the education system and to what we do when people leave school at 16. That is why we put so much emphasis on how we can use a strengthened careers service to engage with young people; how we can put mentoring and family support in place; and how we can take through the signposting. We are also talking about individual careers advisers staying with the same young person from the ages of 16 to 17 to provide that continuity in support.

The Member also mentioned tracking, which is absolutely central to moving this forward. Data will come from a number of sources. Essentially, we want to match that data so that we can see someone moving through the system from early years to post-16 provision. At present, primary-school pupils get a particular identification number. That number does not stay with them when they move into post-16 training, so we end up with a wholly new set of records. We are trying to integrate the records between the different levels of intervention so that we can properly map how someone’s life and life chances evolve over time.

Fra McCann (Sinn Féin, Belfast West)

Go raibh maith agat, a LeasCheann Comhairle. I welcome the Minister’s statement. I also welcome the extension of EMA, which many have called for for quite a while.

Page 5 of the Minister’s statement refers to “a community based access programme” and:

“promoting the development of individual action plans”.

As the Minister is aware, a substantial number of people have been bypassed at community level. There are neighbourhood renewal partnerships spread across the region. How will they be dealt with? Will they be used as levers to try to encourage people to take part in the new system?

I will get another one in. Will there be any financial enhancement for 18-year-olds to 24-year-olds to take part in the schemes?

Stephen Farry (Alliance, North Down)

I thank the Member for his questions, and I will try to remember all three. First, to be clear, this is not, strictly speaking, an extension of EMA. If Members recall, we had a debate in the Assembly on EMA, during which Members called for its extension. During that debate, I said that there would be legal difficulties in extending EMA away from what it was originally designed for, to support people in schools and FE colleges, to encompass a range of purposes. I also said that we would potentially look at trying to find equivalent support through other means. This is a training allowance, and it is important that we do not cross the line and call it EMA. For example, it will not be part of the future review of the EMA policy, which my Department and the Department of Education will take forward. It is entirely separate.

We recognise that the community is often better placed than the state to deal with some of these issues. The state will have a comprehensive range of programmes, but there will be gaps, and the community is often better placed to engage with people. The precise provision may have to be decided through procurement exercises. Obviously, things become a bit more bureaucratic with that approach, but, to be fair to everyone, we may need to go down that route. It is about trying to be as hands-on with young people as possible by using those who are best placed to interact with them.

Finally, I think that many young people are extremely eager to engage in work experience. They know that the employability skills that that experience will bring are vital to their competiveness in a very difficult job market. Many young people are trapped: they cannot get a job without experience, and they cannot get experience without a job. This is there to break that cycle. Young people will remain on benefits while they participate in the programme, but there will be incentives for employers to take people on.

I would stress that this is not the same as the scheme in England, about which there were many headlines and much controversy earlier this year. It is entirely different and qualitatively different. Furthermore, no sanctions will be applied to young people if they fail to participate in the programme. It is designed to be purely voluntary.

At the top of the scale, we anticipate about 6,000 placements over the next number of years. Regrettably, I imagine that the demand in this society will probably outstretch the supply that we will be able to put in place. However, there is a commitment from me and, hopefully, in due course from the Executive to push as many opportunities in front of young people as we can within the available resources.

Sammy Douglas (DUP, Belfast East)

I also welcome the statement and thank the Minister for it. In the past, the Minister has mentioned the role of the community and voluntary sector. He has also paid tribute to that sector as he did again today. The Minister also mentioned incentives for businesses. What incentives has he in mind to involve the community and voluntary sector? I am thinking along the lines of what happened in the past, when the Step Ahead and Steps to Work programmes, for example, placed some of the young people in community and voluntary organisations.

Stephen Farry (Alliance, North Down)

I thank the Member for his supplementary question. Resources will be available for this, but their scope is still to be determined. I referred to the potential for public procurement around all of this. It is important that we all understand the need for incentives and for a sense of responsibility. Everyone, whether in the community or in business, must appreciate the importance of investing in our young people. The economic cost of not doing that is considerable. If someone gets trapped in unemployment, even for a couple of years, their risk of being unemployed for most of their life is significantly increased. That creates a cost for society in additional benefits and support services. As a Government, we have an incentive to get this right, as does the community sector. Business has an incentive to cater to the future needs of our economy and make sure that we have a skilled workforce that can take up the jobs that will come along. So, certainly, we envisage a partnership approach, and structures will be put in place to implement the strategy and bring together all the sectors in an advisory group for the NEETs strategy.

Kieran McCarthy (Alliance, Strangford)

I also thank the Minister for bringing this important subject, the NEETs strategy, to the Assembly. Let me say how disgusted I am that, because of a cynical political carve-up by OFMDFM, this important Department will be abolished. It is a shame and disgrace that this young, energetic and progressive Minister will be denied the opportunity to see this strategy through to a successful conclusion.[Interruption.] If some people feel guilty, so be it.

Minister, how do the present divisions in society impact on the problem of young people not in education, employment or training?

Stephen Farry (Alliance, North Down)

I thank the Member for his question and introduction — I assure the House that I had no hand in writing it.

Obviously, the nature of our society, particularly the divisions in it, impacts on people’s life chances. It impacts on the number affected and the nature of our NEETs problem. There are clear linkages between deprivation and the nature of the divisions on the ground. I hope that the parallel efforts that the Executive can take forward will help in some of those respects. Equally, we recognise that division is a factor historically and currently in creating the context for the problem that we are dealing with in Northern Ireland. NEETS is also a global problem, and we can learn lessons from how other jurisdictions have dealt with it. In due course, there may be lessons that others want to learn from us, if we get the strategy right and roll it out effectively.

Jim Allister (Traditional Unionist Voice, North Antrim)

Given that, today, four Sinn Féin MPs announced that they are resigning from the Assembly, I was tempted to ask the Minister whether he had any measures in mind for those at a loose end who refuse to go to the place of employment available to them.

On that theme, there are many incentives — many carrots — in this package, and that is good. However, is there any stick to deal with those who may be recalcitrant or reluctant to engage and may be looking for the handout, if we can call it that, but unwilling to make the return? Is there any stick at all in the package?

Stephen Farry (Alliance, North Down)

I thank Mr Allister for his question. I will pass over his introduction. I stress that we are going for a sanctions-light or nil-sanctions approach in this or indeed any other context.

Earlier this year, there was a lot of controversy around sanctions in some of the programmes in England, and that detracted enormously from the importance of the schemes. Whether it was eventually government or businesses, the sanctions were a major distraction. I have no doubt whatsoever that a voluntary scheme, with an incentive for people to go on to it, will be effective, and that is all that we need. Some people may be trapped in benefits, and some of the more positive aspects of universal credit will address some of that. Most young people want to have opportunities. For whatever reason, whether it is a lack of opportunities, barriers that have been thrown up in their life or barriers that they face for other reasons, they have been prevented from availing themselves of those opportunities. I hope that the NEETs strategy will unlock those doors and ensure that the young people will be able to have a more productive life and live up to their potential and that society will benefit from their contribution to the economy.

Michael Copeland (UUP, Belfast East)

I, too, welcome the Minister’s acknowledgement that we have a situation. He repeatedly used the word “problem”, which I have a difficulty with, as it impugns the young people involved by implying that they are a problem. It is not that they are a problem; it is the damnable situation that they find themselves in. He has, at least, tried to address it. Will he elaborate, if at all possible, on the pilot scheme that he sees as a necessary part of this? I seek an assurance that the pilot scheme will be based in areas where it is most likely to be of use. That, in my view, is in urban areas of Belfast, particularly east Belfast, where these difficulties affect young people of a certain age, regardless of race, religion, colour, creed or gender. I draw to the Minister’s attention the magnificent work being done by the Gerry Rogan Initiative Trust and the Bytes project at its locations in the Short Strand district of east Belfast and the Tullycarnet area of Castlereagh.

Roy Beggs (UUP, East Antrim)

I think that the Member has asked the question.

Michael Copeland (UUP, Belfast East)

That was the question. Can the Minister elaborate and assure me that the pilot project will be focused where there are areas of need and where most work needs to be done?

Stephen Farry (Alliance, North Down)

I thank Mr Copeland for his question. I stress that, in so far as we use the word “problem”, we are talking about a problem in the wider sense — a problem for society, rather than the young people themselves being the problem. I alluded to that, to an extent, in my answer to Mr Allister.

With regard to pilots, I note the pitch that the Member made for his constituency. I do not want to give him any direct commitments, because I fear that some of our colleagues from more rural areas will also make a pitch for some of their particular context. However, it is a general rule in government that there is little point running a pilot in an easy area, The results that you gain from that may not necessarily translate across to the more difficult areas for the design of the more mainstream project. Therefore, if we are to have effective mainstream policy, it makes much more sense to pilot those in some of the more difficult and challenging circumstances to ensure that we know that whatever we mainstream will be fit for purpose.

Colum Eastwood (Social Democratic and Labour Party, Foyle)

I thank the Minister for his statement. Given the fact that there are well over 40,000 young people not in education, employment or training, what specific targets will he introduce to try to reduce that figure?

Stephen Farry (Alliance, North Down)

I thank the Member for his question. At this stage, we are not setting a precise figure for the reduction in NEETs. Members will appreciate that it is a multifaceted problem. Much of it will reflect the flow of our labour market and levels of unemployment, which reflect the demand side of our economy. I stress that our overall figures for unemployment in Northern Ireland have been stabilising over the past number of years and, in particular, the past year and that our situation is moving in a more benign direction than that in other parts of the UK. So, things are turning around. That is not to underestimate, in any sense, the scale of the problem that we have in Northern Ireland with NEETs. Our baseline for NEETs is much higher than in virtually any other part of the UK. I think that Wales has a higher baseline problem than we have, but, historically, it has been a significant issue for us.

I stress that this is a priority for the Executive and the Assembly. We are taking this extremely seriously, and the strategy is an indication of that. Ultimately, it will not be a document that sits on a shelf. The strategy will be actively pursued, whether that is by me or somebody else, over the months and years to come.

Executive Committee Business

Arlene Foster (DUP, Fermanagh and South Tyrone)

I beg to move

That this Assembly agrees that the provisions in Part 3 of the Financial Services Bill, as introduced in the House of Commons on 10 May 2012, dealing with the transfer of functions in relation to mutual societies should be considered by the UK Parliament.

We are here again today to consider the ongoing reform of the Northern Ireland credit unions. Members will recall that I addressed the House very recently on the issue, which is of key importance to individuals and communities across Northern Ireland. The enthusiasm and support from my fellow Members for continued reform of the sector was very evident on that occasion. Like the rest of my colleagues, I am keen that the reform process continues and credit unions are able to fulfil their potential.

Following on from all the good work carried out to date, the next immediate step in the reform programme will be to permit the transfer of the registration of credit unions from my Department to the Financial Services Authority (FSA) or its successor body. One recommendation of the 2009 ETI Committee report on the reform of credit unions was that registration of Northern Ireland credit unions should remain in DETI. However, in discussions on the progress of credit union reform between my Department, Her Majesty’s Treasury and the FSA, it became increasingly evident that no tangible benefits would result from registration remaining with my Department and that a possible move of Great Britain registration from the FSA could lead to the further division of responsibilities. In essence, registration is administrative in nature, and, in practice, a separate Northern Ireland-specific registrar would be unlikely to have any role or power that could be exercised independently of the regulator in Great Britain. Any benefits of maintaining registration in Northern Ireland are largely perceived rather than actual and are outweighed by the associated administrative costs and confusion that the arrangements could cause for our local credit unions.

In March 2010, a joint HM Treasury/DETI consultation considered the transfer of regulation and registration from Northern Ireland to Great Britain. Following that consultation, I wrote to the Chairperson of the ETI Committee to advise him that it would be in the best interests of the Northern Ireland credit union movement as a whole if responsibility for registration and regulation were transferred to the FSA or its successor. Following agreement from the Financial Secretary to the Treasury, draft relevant Northern Ireland clauses were included in the Financial Services Bill, which is currently making its passage through the House of Lords. The proposed Northern Ireland-specific clauses will allow HM Treasury, by order, to enable the transfer of the function of registrar of Northern Ireland credit unions to one or more of the successor bodies of the FSA.

As Members are aware, I very much recognise the importance of a thriving and growing credit union sector. Recent reforms have placed credit unions in Northern Ireland on a more secure footing. I intend to build on the good work already done and continue the reform process by introducing a Northern Ireland Bill that will remove restrictions on Northern Ireland credit unions, permitting them to expand the range of their activities and reach out to new groups. Therefore, I now seek the Assembly’s consent to Parliament legislating for the transfer of the registrar of credit unions from my Department to the appropriate UK authority. If the opportunity to avail ourselves of the provisions in the Financial Services Bill is missed, there may be a negative impact on the ongoing reform of our local credit unions, subjecting the sector to uncertainty and creating duplication.

I must make it clear that the Northern Ireland provisions in the UK Financial Services Bill will facilitate the transfer of Northern Ireland credit union registration. The actual transfer of the function of registrar will be completed by way of a Westminster order in due course.

I am confident that the step of facilitating the transfer of registration of credit unions to the appropriate UK authority, following the successful transfer of regulation, is a logical step in the reform process and will help to ensure that the local sector is best placed to benefit from future reforms. Passing this legislative consent motion, therefore, will send a signal to our local credit unions that the Assembly is committed to completing the reform process in as timely and efficient a manner as possible.

Alban Maginness (Social Democratic and Labour Party, Belfast North)

I welcome the motion, which is timely and helpful in continuing the process of reforming credit unions in Northern Ireland. It is another step on the journey to permitting credit unions in Northern Ireland to expand their range of services to their clients throughout Northern Ireland in a fashion similar to that of credit unions in Britain and the Irish Republic. As Chair of the Committee, I welcome the motion and hope that it will pass without any difficulty.

Following the inquiry into credit unions by the previous Committee for Enterprise, Trade and Investment, the Department and the Treasury agreed to reform credit unions in Northern Ireland to enable them to provide a similar range of services to their counterparts in Britain. The transfer of functions will be the first step in enabling the recommendations from that inquiry to be implemented. The previous Committee and the current Committee, which I chair, have closely followed and scrutinised developments as progress has been made. The Enterprise, Trade and Investment Committee is very supportive of the process of reform of the credit unions.

The Irish League of Credit Unions and the Ulster Federation of Credit Unions had concerns about a number of proposals originally brought forward by the Treasury. However, in her statement to the Assembly on 22 May, the Minister outlined how many of the concerns of the Committee and the credit union representative bodies had been addressed. She also outlined a package of financial support to assist the credit union movement through the transition from regulation by DETI to regulation by the Financial Services Authority. That is to be welcomed. I know that the credit unions are pleased with that progress.

There remains one outstanding issue to be addressed. The previous Committee recommended that credit unions be permitted to reinvest a proportion of their assets in community development projects. The Minister has advised the Committee that legal intervention at Northern Ireland level, along with the prior consent of the FSA, would be required in order to implement that recommendation.

The Committee agreed to receive oral evidence from the Financial Services Authority, the Irish League of Credit Unions and the Ulster Federation of Credit Unions after the summer recess to scrutinise the implementation of the new arrangements and to explore options to permit the reinvestment of credit union assets in community development projects through the proposed Northern Ireland credit union Bill. We look forward to a provision in the Bill that would address that issue.

Having carefully considered the options for extending the range of services offered by Northern Ireland credit unions and the proposals from the Treasury in London, the Committee is of the view that the legislative consent motion, coupled with the forthcoming Northern Ireland credit union Bill, is the best available means of enabling Northern Ireland credit unions to extend their range of services in line with the recommendations from the inquiry of the previous Committee for Enterprise, Trade and Investment.

The Committee, therefore, supports DETI in seeking the Assembly’s endorsement of the legislative consent motion.

Robin Newton (DUP, Belfast East)

Like the Chairman of the Committee, I support the motion. I declare an interest as a long-term member of a credit union. Recent experiences of mutual societies, at least in part, brought the necessity for this legislation to a head, but, in many ways, the experience of credit unions has been such that many of them had already recognised the need for change.

In my experience of talking to members or officers of credit unions, I have found that they recognise the potential of credit unions. The legislation and the way that the Minister has handled it also recognises that potential and shows that the Minister wishes to provide opportunities for credit unions in the future. It is true to say that the Minister picked up on the matters that arose with a great deal of diligence and hard work. As the Chairman said, as the evidence was being sought and witnesses were coming forward, every member of the Committee began to realise the seriousness of the situation and the need to bring about change.

I am extremely pleased that the Minister has recognised that there is a need to do away with or minimise the amount of bureaucracy. Allowing the registration to be with the FSA rather than with her Department will lead to a smoother and more professional relationship than if there were two bodies involved. I am sure that the Minister hopes that that will not mean that her Department will step back completely; there may be some advice, at least, from her officials as we go through this area of change. The Minister recognised the important role of the FSA. The general credit union movement recognises the role of the FSA and the need to address all the problems that have occurred in the past.

I welcome the motion and welcome the steps that the Minister is taking to minimise what might have been a more bureaucratic approach. As the credit unions develop their expertise, the valuable work that is done by the credit union movement and its members will benefit the entire Northern Ireland community. I welcome the legislation.

Jennifer McCann (Sinn Féin, Belfast West)

Go raibh maith agat, a LeasCheann Comhairle. I, too, welcome today’s motion. Hopefully, it is another step towards credit unions providing a wider range of financial services for customers. We have been debating the issue since about 2008, so it is good to seeing it moving forward. When most people here talk about credit unions, they say that they are community based and have the potential to help hard-pressed families and businesses that would not normally have access to finance from services such as banks or other financial institutions. Therefore, the new proposals allow for community organisations and groups to be members. I particularly welcome the fact that businesses from the social economy sector will also, hopefully, be allowed to become members. That will make a positive contribution not just to the economy but to areas in need of regeneration.

I know that this has already been mentioned, but the credit unions had concerns about a number of areas when this first came through. The main concerns were about the limits on the investment period, the provision for bad debt and the need for measures to help with the additional management and the administrative burden. I know that the Committee raised those issues and that my colleague Pat Doherty raised them with the British Treasury. It is good to see this moving on and some of those concerns being listened to.

As has been said, the ability to reinvest in local community development and community enterprises is very important for credit unions. I know that the Minister said in a statement here a few weeks ago that she will take that concern on board. Although there is support for the motion today, I ask the Minister to ensure that credit union reform is progressed as quickly as possible and that reinvestment in community projects is looked at and progressed as well.

Sandra Overend (UUP, Mid Ulster)

I also welcome the opportunity to support the motion. The Financial Services Bill had its first reading in the House of Commons on 10 May 2012. The general purpose of the Bill is to make amendments to the Bank of England Act 1998, the Financial Services and Markets Act 2000, and the Banking Act 2009, as well as to make various other provisions regarding the financial services, markets, building societies and other mutual societies.

Part 3 of the Bill is what is important to us today, as it deals with mutual societies and, specifically, the transfer of functions, with credit unions here now coming under the regulation of the Financial Services Authority. The Minister has stated previously in the House that the relevant Northern Ireland clauses in the Financial Services Bill would permit Her Majesty’s Treasury, by order, to enable the transfer of the function of registrar of credit unions for Northern Ireland to one or more of the successor bodies to the Financial Services Authority. It is important that those clauses be included in the Bill, and the motion is fundamental in that regard.

The House has spoken before of the benefits of FSA regulation for local credit unions. They play an important role for many in Northern Ireland, and it is essential that they be given the most appropriate legislative framework. I commend the Minister for the work she has undertaken in the reform of credit unions to date. For the reasons outlined, I support the motion.

Stewart Dickson (Alliance, East Antrim)

The Alliance Party also supports the motion, but we have some sympathy with credit unions, which will find some of these changes very difficult. However, in light of the situation with the Presbyterian Mutual Society, we can see the need for greater protection for investors and welcome the protection that this change will bring.

With regard to protection for investors, all credit unions must have in place a business plan, policies and procedures manuals, a documentation system of control, a liquidity management policy statement and a lending policy statement. In addition, version 2 credit unions must have in place financial risk management policy statements that are tailored to the credit union’s circumstances and the specific risks that it faces. That will enable investors to have clear information on the institutions in which they are placing their money.

We note that Northern Ireland credit unions have until January 2013 to produce those documents, and we welcome that lead-in time. It is important that credit unions be given support during the transition phase, particularly smaller, local credit unions that may initially find the greater level of bureaucracy and rules overbearing and difficult to cope with. I trust that the Minister will ensure that there is no hesitation in providing the necessary support until January 2013.

Patsy McGlone (Social Democratic and Labour Party, Mid Ulster)

Go raibh maith agat, a LeasCheann Comhairle. I thank the Minister for the detail that she presented before us and, indeed, for her efforts on behalf of credit unions, through her input to the legislation.

In this, the United Nations International Year of Cooperatives, mutual societies should have something to celebrate. However, there is a concern — this has been reflected in the debate so far — about the rapid and widespread change that the sector is being put through. There is little doubt that the regulatory framework needed reform. Indeed, the collapse of the Presbyterian Mutual Society stands out as an example of the failure of light-touch regulation under the Department of Enterprise, Trade and Investment. The UK Parliament’s Treasury Committee was severely critical of the Department’s failure to identify the problem sooner and its failure to take preventative action.

The reality now is that, having rescued the majority of the finances required for the PMS rescue fund, albeit mostly in the form of a loan under the reinvestment and reform initiative, the UK Treasury has taken responsibility for the regulation of mutual societies in Northern Ireland away from the registry of credit unions under the Department and placed it with the Financial Services Authority. That process was completed on 31 March 2012. A few months later the regulatory framework is being altered again. A further consolidation Bill is planned, bringing together a series of nearly 20 Bills or Acts of Parliament relating to co-operatives and mutual societies.

The Financial Services Bill seeks to replace the previous regulatory framework across the entire financial services industry, not just mutual societies. The previous tripartite structure was put in place by the Labour Government and failed to properly regulate the industry. It, too, clearly needed to be reformed. The Bill will abolish the FSA and create three new bodies to regulate financial services: the financial policy committee, the prudential regulation authority within the Bank of England and the financial conduct authority.

The Bill is now nearing completion of its detailed passage through the UK Parliament. It has been the subject of much debate and attempted amendments during that journey. It has been criticised by the Treasury Select Committee as defective, in particular in regard to the accountability of the new supervisory authorities. My party colleague the Member of Parliament for Foyle, Mark Durkan, has been actively involved in constructive criticism of the Bill in both the Treasury Committee and the Commons debates. He has pointed out in those debates that in the credit union movement in Northern Ireland, there is some disappointment about the impact of the new regulations. Those are seen as a backward step that restricts existing credit union capacity to make sound investment choices.

Credit unions may look forward to being able to offer a wider and better range of services, but they are somewhat disappointed that the price of the new regulatory system is that they will be restricted in making the kind of sensible investment decisions for their members that they have a strong and very successful track record of making. It is well established here in Northern Ireland that credit unions have that record.

Additionally, included in the Financial Services Bill is a clause that states:

“The Treasury may by order amend the legislation relating to mutual societies for any of the relevant purposes.”

Credit unions and other mutual societies would be right to be concerned at such permissive legislation. The Bill’s explanatory note adds:

“Orders may also provide for functions of a Northern Ireland department and of the Registrar of Credit Unions under the Industrial and Provident Societies Act (Northern Ireland) 1969 and the Credit Unions (Northern Ireland) Order 1985 to be transferred to the FCA”.

Having relinquished responsibility for the regulation of mutual societies, there seems little to be gained now by parties pretending to object to the UK Parliament’s consideration of the reform proposals in the Financial Services Bill. The time to object was during the negotiations with the UK Treasury. However, the SDLP looks forward to a time when we all have the confidence in the Executive and the Assembly to deal with these matters ourselves, but we welcome the proposals being brought forward today by the Minister.

Steven Agnew (Green, North Down)

I declare an interest as a member of my local credit union. I support the legislative consent motion. We are well aware of the importance of credit unions, particularly now, given the reaction to the irresponsible lending by banks. This is a responsible model of lending, which benefits the community rather than the profits of shareholders.

I welcome the work of the Minister and her Department in raising the various concerns that our local credit unions had about the original proposals in the Bill, her engagement with the credit union movement and her representations to the UK Government. Indeed, as the Chair outlined, the Committee has also made written representations to the Government, and we have seen substantial changes made, and that is to be welcomed.

Others have expressed concern about the potential difficulties for local credit unions in coming to terms with the new regulatory framework. The Minister is obviously well aware of those concerns. I think I am right in saying that she is considering financial support for our credit unions. That support is currently absent — they do not receive the support that is available in GB. I urge the Minister to do what she can to give financial support to our credit unions. I am well aware that the Department is engaging with credit unions to help give them direct training and support in coming to terms with the new regulations. Like others, I look forward to the forthcoming credit unions Bill. I hope it will ensure that our legislation will be up to date and up to speed subsequent to the UK Parliament’s regulations.

For the Minister and the House’s information: the all-party group on co-operatives and mutuals, of which I am chair, will meet in September to discuss the co-operative and mutual models of finance. I invite all those who are interested to attend that meeting, the details of which will be passed on when finalised.

Arlene Foster (DUP, Fermanagh and South Tyrone)

I thank all the Members who spoke to and supported the motion today. I specifically thank my colleagues in the Committee for Enterprise, Trade and Investment and the Business Committee for their consideration of the matter in such a timely fashion, which has allowed for the motion to be on the Order Paper today. I appreciate the positive manner in which the issue has been dealt with and the agreement from all sides of the House.

I will address the points that were raised. The Chair of the Committee indicated that this was another step on the journey of credit union reform. That is exactly what it is. It will allow us to move on to the next step, which will happen in this House. He suggested allowing credit unions to reinvest a proportion of their assets, as did Ms McCann. That issue will be included in the statutory consultation that will inform the Bill for Northern Ireland that will come before this House for consideration. We talked about the timescales during my statement on 22 May, and it is my hope that we can move as quickly as possible to bring that Bill forward. We have to go through the appropriate statutory consultation, and that sometimes holds things back a little.

Mr Newton referred to recent experiences in relation to mutual societies. Mr Dickson mentioned the PMS by name, and Mr McGlone also talked about the Presbyterian Mutual Society. It important to make this differentiation: before 31 March 2012, credit unions were registered and regulated by the Department. When the legislation came through at the end of March, regulation transferred to GB. The purpose behind this legislative consent motion is to transfer the registration of credit unions as well, because we want to keep both elements together.

DETI had the registration function for the PMS in the past, but it did not have a regulation function. That is where the whole debate and confusion about registration and regulation has come from. In fact, I think that, if anything, the PMS situation points to the fact that registration and regulation should be together to avoid any confusion for those organisations that are subject to registration and regulation. That will help to minimise bureaucracy, as Mr Newton said, and it is absolutely key, particularly for small credit unions, that we cut down on the amount of bureaucracy that they have to contend with. That will also help to avoid duplication.

The Department and officials are standing ready to help credit unions that may need to avail themselves of that help. I recognise, as I said in my statement on 22 May, that there will be an increase in the workload for credit unions over the next while. That is why — to respond to Mr Agnew’s point — we announced on 22 May that we will provide financial support for both the Irish League and the Ulster Federation on the condition that they help independent credit unions to come up to the mark in relation to registration and regulation.

I think that those are all the points that were raised by Members. Officials met both the Irish League and the Ulster Federation just last week. They are content with the way in which we are progressing, particularly in relation to the legislative consent motion. They are thankful for the finance that we have put in place to assist them. The continued development of the Northern Ireland credit union sector is a key objective for me and the Department. Passing the legislative consent motion today will highlight the importance that the Assembly places on the credit union sector. I commend the motion to the Assembly and thank Members from across the House for their support.

Question put and agreed to.

Resolved:

That this Assembly agrees that the provisions in Part 3 of the Financial Services Bill, as introduced in the House of Commons on 10 May 2012, dealing with the transfer of functions in relation to mutual societies should be considered by the UK Parliament.

Alex Attwood (Social Democratic and Labour Party, Belfast West)

I beg to move

That the draft Goods Vehicles (Licensing of Operators) (Exemption) Regulations (Northern Ireland) 2012 be approved.

In the North, there are approximately 2,200 operators licensed to carry goods for hire or reward using vehicles of more than 3·5 tons gross plated weight. They are already captured under regulations for the licensing of operators. Own-account operators — those who carry their own goods in the course of their business or trade, as opposed to hire or reward operators — make up around three quarters of the industry but presently are not required to be licensed. There are arguably up to 10,000 such operators in Northern Ireland who are currently not required to be licensed.

Over many years, the need for change to road freight operating licensing in the North has been raised by the freight industry, public representatives and consumer organisations who are dissatisfied with the way in which freight services are delivered under existing policy and legislation. My understanding of their concerns is, first, that they feel that the burden of regulation falls on one side of the freight industry, namely the 2,200 operators who carry goods for hire or reward. Their second concern is about the extent of potential illegal operations. Thirdly, there are concerns about the poor standard of vehicle maintenance and, fourthly, that there should be more and better enforcement.

The Goods Vehicles (Licensing of Operators) Act (Northern Ireland) 2010, which was passed by this House and received Royal Assent in January 2010, provides my Department with the powers to address those concerns and bring the operator licensing system into line with that in Britain. It will require everyone who uses a goods vehicle above 3·5 tons in the course of their business, whether for hire or reward or as an own-account operator, to have an operator’s license.

In this calendar year, there will be arguably the greatest deployment of regulation around road users and road vehicles in a generation. That is seen in today’s regulations, forthcoming taxi regulation, heavy goods regulations, issues around city tour operators, and so on and so forth. The intention of all of those is that, by improving regulation, you improve safety and that, by improving safety, you help business and people generally.

The vehicles in scope for standard national and international licences — that is, the hire and reward sectors — are determined at EU level, so there is no option to vary the requirement. That is already the law. Those vehicles are currently licensed in Northern Ireland, and vehicles and combinations of vehicles and trailers exceeding 3·5 tons used for hire or reward will continue to require a licence under the new Act. There is no change to those categories currently requiring a licence or to those having requirements in future to have a licence.

This legislation, however, allows the scope to be limited to certain combinations of own-account vehicles, and for exemptions to be made for certain classes of vehicle. The Department has endeavoured to simplify the subordinate legislation to make it clear which vehicles and combinations are in or out of scope owing to their weight and which vehicles are exempt as a result of their construction or function. In that regard, what we propose in the regulations is a simpler and more understandable version of exemptions than that which currently prevails in Britain.

My Department is keen to ensure licensing of Northern Ireland’s goods vehicles without creating an unnecessary burden for small businesses. Therefore, the statutory rule that is before the Assembly for affirmation provides that, for the own-account sector, vehicles, excluding any trailer that they may pull, will be deemed to be outside the scope of the requirements of the Act if they are of a maximum authorised weight of no more than 3·5 tons.

Other exemptions from operating licensing have been drawn up to cover emergency situations and those vehicles used for activities that fall outside the licensing regime. There is a category of 15 or 16 such exemptions. Existing exemptions from the legislation for the hire or reward sector in Northern Ireland were drawn up in 1968 and, like exemptions in Britain, are outdated, extremely complex and open to widespread abuse. The statutory rule before us includes a simplified list of exemptions from operator licensing that aims to apply the legislation to appropriate vehicles and to avoid affecting more people than is necessary.

My Department consulted informally in the first instance with various industry representative bodies in drawing up the list, and, in the second instance, formal consultation took place from 15 October 2010 until 7 January 2011. The views expressed largely supported the proposals. In addition to providing exemption for emergency functions, a number of specific exemptions have been included. Those include exemptions for agricultural vehicles used solely for agriculture, horticulture and forestry purposes; for vehicles being used to recover disabled vehicles from the roadside; and for vehicles such as a tower wagon, where the only goods carried are required for the operation of the machine.

In conclusion, I believe that the introduction of the Goods Vehicles Act and its associated regulations will have a positive impact on road safety, tackling organised crime, the environment and fair competition in the freight industry in the North. It is important that all those who need a licence get one and that it is clear for operators and enforcement agencies which vehicles and functions do not need a licence. That is why I propose that the statutory rule be affirmed.

Anna Lo (Alliance, Belfast South)

The Goods Vehicles (Licensing of Operators) Act 2010 received Royal Assent on 22 January 2010, some considerable time after the previous Environment Committee reported on the Bill in December 2008.

During the Bill’s Committee Stage, the previous Committee heard evidence from the two main haulage organisations and was left in no doubt that the introduction through the legislation of own-account operator licensing was wanted by the vast majority of those involved in the freight sector. However, the Committee also heard from the agriculture and horticulture sectors, which were concerned that, as proposed, the legislation would have a detrimental impact on their industries. As such, they made a case for their vehicles to be exempt from operating licensing.

The Committee accepted their argument and urged the Department to urgently address the issue of which vehicles should be included within the scope of the Act and which should be exempt. The Department was unable to produce a proposed list of exemptions while the Bill was at Committee Stage, but it insisted that the principles on which it would consider exemptions will be along the lines that are currently applied in Great Britain. It was based on the use of a vehicle rather than the vehicle type. For example, a tractor being used to haul a silage wagon would be exempt, but the same tractor being used to haul building materials would not. The Committee accepted that principle, but members were subsequently concerned to learn that the GB exemption list was in the process of being reviewed. At that stage, some 60% of current exemptions had been identified for removal.

In the absence of a definitive list being available at the time and the fact that the benchmarks list across the water was in a state of flux, the previous Committee felt that it was necessary that the highest level of Assembly control be retained over the subsequent relevant subordinate legislation. Thus, the Goods Vehicles (Licensing of Operators) (Exemption) Regulations (NI) 2012 are subject to the Assembly’s approval today.

At its meeting on 29 March 2012, the Committee considered proposals for seven items of secondary legislation that would complete the implementation of the Goods Vehicles (Licensing of Operators) Act. Six of the statutory rules were due to come into force automatically, and the Committee agreed that their introduction would bring Northern Ireland into line with GB and would result in improvements in road safety, organised crime detection, commercial fairness and environmental standards, and would improve the Northern Ireland freight industry’s image.

However, the Committee was keen to ensure that the Department had taken on board the concerns of stakeholders in relation to exemptions, and sought the views of those who had contributed at Committee Stage. In response, the freight industry urged against any further delay to the introduction of the legislation and reminded the Committee of how long it had taken the Department to reach that stage. It stressed that the legislation is critical for road safety and to ensure a fairer operating environment, and it strongly recommended that no changes be permitted at that late stage.

In comparison, the agricultural sector expressed disappointment with the proposals. It noted that it had participated in the consultation on exemptions, which had taken place well over a year ago, but felt that a number of the key concerns had not been taken into consideration by the Department of the Environment. Although the Ulster Farmers’ Union (UFU) agreed with the proposed exemptions for agricultural and limited-use vehicles, such as tractors and loaders, it stressed that other agricultural vehicles should be exempt, particularly lorries used very occasionally to transport livestock or goods to market or for processing. It suggested that those could be excluded from the regulations on the grounds of limited mileage or by being linked to an agricultural business or farming. It also stressed that failure to exempt vehicles of that kind is likely to lead to an increase in tractors on the road as farmers will revert to that method of transport rather than facing the expense and bureaucracy of meeting the requirements of the Goods Vehicles (Licensing of Operators) legislation for rarely used lorries.

The Department assured the Committee that it had worked closely with industry representative bodies, including the Ulster Farmers’ Union and the Horticulture Forum for Northern Ireland, throughout the consultation process to develop a list of exemptions that would be clear and acceptable to the industry. In addition, the Department said that it will publish guidance to explain the exemptions and minimise misunderstanding in the industry.

The Department argued that the agriculture industry’s suggestions were neither fair nor feasible. Limited mileage could apply to many vehicles and not just those associated with agriculture and horticulture. Alternatively, linking an exemption to a business or person would contradict the principle, which was established from the outset by the Department, of basing exemptions on vehicle use. The Department also noted that the enforcement of such exemptions would prove difficult, if not impossible, and would be costly. However, it acknowledged that there might be a resultant increase in the number of tractors on the roads at certain times of the year as a result of the exclusion of agricultural lorries from the exemption list.

The Committee accepted the Department’s rationale for not including farm lorries on the list of exemptions, and, when it considered the draft rule again on 17 May 2012, was content that I recommend to the Assembly today that it be approved. However, I must stress that Committee members remain concerned about any consequential impact on road safety. I urge the Department to monitor this as the regulations are brought into effect and revisit it, if necessary, in due course. On this basis, on behalf of the Committee for the Environment, I support the motion.

Cathal Boylan (Sinn Féin, Newry and Armagh)

Go raibh míle maith agat, a LeasCheann Comhairle. Ba mhaith liom cúpla focal a rá. I want to say a few words about the exemptions, which, on behalf of Sinn Féin, I support. However, I want to put them in the context of where we started in this process and the distance that we have come.

Obviously, the Committee supported the Goods Vehicles (Licensing of Operators) Act 2010, which was about getting proper regulation and road safety measures in place. Sadly, the North has a somewhat poor goods vehicles record, as does the rest of this island, and we wanted to put something in place that would address the issues. However, we also wanted to support the haulage industry, which believed that a small proportion of it was incurring all the costs of dealing with proper enforcement. Although we support the measures in the regulations, we must also remember that we need to put robust measures in place. Although there is a need for exemptions, and I support these ones, we must be careful that, when we introduce legislation, we do not leave it open with so many exemptions that we go back to a situation in which a small proportion of the industry supports the industry itself.

We should also address the issue of the agriculture and horticulture industries, which raised some concerns. I support the Minister’s proposals, but in view of those concerns, I ask that his Department monitor the regulations over the next couple of years and, if need be, review them. With that in mind, I support the regulations.

Tom Elliott (UUP, Fermanagh and South Tyrone)

There is, obviously, general support for the regulations, alongside some notable concerns. I listened carefully to the Minister and to the Chairperson of the Committee for the Environment, who outlined many of the issues very effectively. Following up on Mr Boylan’s comments about the agriculture and horticulture industries, I will touch briefly on one or two issues.

The Ulster Farmers’ Union was very proactive and positive about the matter and worked constructively with the Department. The union has a concern about lorries and other vehicles used for agricultural use only. I would like the Minister to assure us that he will keep that issue under scrutiny and, if required, bring additional information back at some stage. The agricultural industry has a huge concern because those vehicles are used for very limited purposes for the transport of agricultural goods for a particular farm. That means they are used only very occasionally. They are used purely for that farm and not for hire or to draw or transport goods for other farmers, which means that their use is very limited.

Paragraph 18 of the schedule mentions:

“A limited use vehicle which is used solely for the purposes relating to agriculture, horticulture or forestry”.

Sub-paragraph (b) specifies that:

“the distance it travels on public roads in passing between any two such areas does not exceed 1.5 km.”

That is a very short distance, particularly in today’s agriculture and horticulture. Many businesses are split up by a much greater distance. That could conflict with some of the other exemptions. I would like some clarity on that and maybe even see that changed at some stage or have that 1·5 km increased. I ask the Minister to look carefully at that issue.

Paragraph 15 of the schedule concerns:

"A showman’s goods vehicle and any trailer drawn thereby.”

That could include quite a lot of organisations and groups. I know that a lot of people would maybe classify themselves as showmen — or show women, actually. I do want to sound sexist but we need to be realistic. A lot of organisations could fall into that category, and maybe a wee bit more clarity on that would be helpful.

John Dallat (Social Democratic and Labour Party, East Londonderry)

I support the business in front of us. In many respects, we are discussing the history of transport. My first lesson on that was the Red Flag Act, when somebody had to walk in front of a steam engine, which could not do more than 4 mph. I am old enough to remember farmer Brown in his wee Fergie, which probably did 10 mph and could draw maybe a ton or, at most, two tons. Today, we have tractors that are monsters that can do 50 mph or more and, of course, are drawing diggers and things like that of huge dimensions.

The Red Flag Act was about road safety. What we are discussing today is road safety as well. We have made progress, and I agree with Tom Elliott that this needs to be constantly monitored and certainly not left for 40 years before it is looked at again, not that I am suggesting that I would be here in 40 years. However, 1968 was the last time it was looked at seriously.

I have had many meetings with transport operators, whom I commend and who warned us and told us repeatedly that too many vehicles on the road are not roadworthy. We need to take that seriously. We do not want to rest on our laurels, but we should take some satisfaction that the number of people killed on the roads has vastly diminished. Any new legislation that encourages that and keeps in front of people the absolute need to put road safety at the top of everything is important. I share some of the disappointments of the agricultural sector but they themselves know that safety on the farm and the road is of paramount importance. Hopefully, they will accept that these regulations will reduce any confusion.

Mr Deputy Speaker, I do not want to give you a history lesson but there was a time when Land Rovers were exempt if they were for agricultural use. That led to an interesting Budget debate in the Assembly in 1972, the last Budget before the collapse of the old Stormont, when there was total confusion as to what constituted a Land Rover that was used for agricultural use. We certainly do not want to get involved again in a debate about whether or not a vehicle is a tow hitch. Generally speaking, I found the debate in the Committee to be extremely interesting, and I support the Minister’s recommendations.

Alex Attwood (Social Democratic and Labour Party, Belfast West)

I thank all Members who contributed to the debate. The Chair of the Committee captured the character of this issue when she said that the issue of goods vehicle licensing has now stretched over a considerable period: the lifetime of two mandates. It was necessary to create certainty, avoid doubt and be decisive, which is why I wish to introduce these regulations. As I indicated in my opening remarks, that is the mindset that I will bring in respect of regulation of vehicles and control of issues around roads. We need to have wise and proportionate regulation of all vehicles that are on the road and regulation and licensing of all those who use the roads. That is necessary to bear down on illegality, improve road safety, create better driver performance, potentially reduce insurance premiums and, ultimately, secure the welfare of those on the road and in vehicles, and maintain our economy efficiently and effectively. As a part of that narrative, these regulations are important.

I note what the Chair and other Members said about the control, regulation and licensing of agricultural vehicles. Mr Boylan captured the sense that it is very important that, in introducing exemptions to goods licensing, those exemptions are not of such breadth that the purpose of having licensing is contradicted. I refer Members to the schedule to the regulations where the 15 exemptions are outlined, including, as Mr Elliott mentioned:

“A showman’s goods vehicle and any trailer drawn thereby”.

For the purpose of shaping exemptions in the first instance, those are wise, exhaustive and proportionate. If we were to go further than that, I would be concerned, as Mr Boylan said, that you may defeat the purpose and ambition of the regulations by having exemptions that, in the first instance, are extensive to the point of defeating the spirit if not the letter of the law.

That said, I reassure Mr Elliott that, over the next period, as the new regime rolls out and as the exemptions begin to apply, the Department will keep under review how these matters are impacting, not least upon our single biggest industry in the North: agriculture. If there is good evidence and a good argument for a need to revisit the exemptions as currently drafted to make them somewhat more expansive, the Department will consider that and, if necessary, consult further with the Committee and other third parties as appropriate.

I confirm that the Department will publish guidance to help understanding of the exemptions, including the one that Mr Elliott referred to. The response to that is that showman’s goods vehicles are already heavily regulated. I am not sure what is meant by specialist vehicles, for example, roundabouts, but if there is any further clarity that I need, I will share that with Mr Elliott in the fullness of time.

I confirm that there were conversations with the agriculture industry about the exemptions for agricultural vehicles. The Department consulted the UFU and the National Horticulture Forum and, as I indicated, considered, in the first instance, a limited number of exemptions for certain vehicles used solely for agricultural, horticultural and forestry purposes where appropriate. I have to make clear that the exempted vehicles are those generally designed for off-road use and agricultural machines or vehicles that are taxed in a limited use class. However, given the rigour and vigour of the agriculture lobby, if it feels that the exemptions so far shaped need to be broadened, I have no doubt that it will bring that to the attention of the Department, Members and the Committee sooner rather than later.

Question put and agreed to.

Resolved:

That the draft Goods Vehicles (Licensing of Operators) (Exemption) Regulations (Northern Ireland) 2012 be approved.

Nelson McCausland (DUP, Belfast North)

I beg to move

That the Social Security Benefits Up-rating Order (Northern Ireland) 2012 be approved.

The uprating order is an annual order that sets out the rates of contributory and non-contributory benefits, together with the various allowances and premiums that make up the income-related benefits. In general, the new amounts from April 2012 are based on the increase in the general level of prices over the 12 months ending in September 2011. That is measured using the consumer price index (CPI), which is the measure of price inflation considered most appropriate for that purpose by the coalition Government.

I am sure that Members will join me in welcoming the increase of 5·2% from April this year. The increase comes at a time when inflation has just fallen to 3%, the lowest since February 2010, and is predicted to fall further. This uprating, therefore, represents a welcome increase in real terms for many people and puts much needed extra money into their pockets.

As a result of the uprating order, we will spend an additional £265 million on social security in 2012-13, and that money will go into the local economy. The basic state pension, which for many is the foundation of income in retirement, is increased to £107·45 for a single person, which is an increase of £5·30 a week and is the biggest ever cash increase in the basic state pension. From April, the increases in state pension credit mean that no single pensioner will have to live on less than £142·70 a week and no couple on less than £217·90 a week. The above-earnings increase in the pension credit guarantee, together with the efforts my Department is making to increase benefit take-up through, for example, the recent Make the Call campaign, underlines the continuing commitment to tackling pensioner poverty.

I am sure that all Members will wish to ensure that people in Northern Ireland, including some of the most vulnerable in our society, can continue to receive those new rates of benefit and will, therefore, join me in supporting the order.

Alex Maskey (Sinn Féin, Belfast South)

Go raibh maith agat, a LeasCheann Comhairle. First, I apologise for not being in the Chamber as the Minister rose to propose the motion. I was engaged with the Bahraini delegation. I apologise for my delay.

The Minister has outlined the primary purpose of the regulation. The Committee for Social Development gave its approval to the SL1 pertaining to the legislation at its meeting on 23 February. As the Minister is likely to have indicated, that rule came into operation in April, and we are simply being asked to confirm the regulation.

I would make the point that, in discussion on this regulation and other matters related to the welfare reform agenda, a number of Members expressed their concern about moving the link of the uplift in the rate away from the retail price index (RPI) to the CPI. Again, most Members have accepted both that this is an issue of parity and that this is not the time or place to raise the more substantive issue of the link to CPI. I just wanted to put that point on the record for a number of Committee members who expressed concern about this issue. However, the Committee was content to support the regulation that is before the House

Michael Copeland (UUP, Belfast East)

I, too, support the Minister in his proposition. In 2011, inflation on the coalition Government’s preferred measure of CPI stood, as has been said, at a record 5·2%. The rate was driven by increases in the price of fuel, food, drink and transport. Many of the most vulnerable who will be affected by this receive some form of social security payments, and this 5·2% rise will no doubt be a welcome boost to their incomes.

The rates of benefit up-lifting need to reflect the price increases to enable recipients to maintain a survivable standard of living. Although it seem high, 5·2% will not leave everyone better off or even rewarded enough to meet increases in their current costs. Analyses of these figures show that for low income families with children, inflation in the year to September 2011 was about 0·5% higher than the headline CPI rate, which would put it at 5·7% as opposed to 5·2%. Therefore, perhaps the issue is not as clear as it at first appears.

Indeed, the Institute for Fiscal Studies said that there were concerns about the change from RPI to CPI, which is a done deal, and that that change may, in future, be a principal driver in increasing rates of child poverty and fuel poverty. That is something that we may have to deal with at some stage.

Nevertheless, it has to be said that the cost of this uprating will bring into the Northern Ireland economy an additional £265 million. That is not an insignificant amount, and it will go to families that suffer a degree of need. The thing to remember is that that will not be spent largely on imported or foreign goods; it will be spent on food, transport and in local shops. As such, this measure must be welcomed and, at this stage, it enjoys the support that I have indicated.

Mickey Brady (Sinn Féin, Newry and Armagh)

Go raibh maith agat, a LeasCheann Comhairle. I have just a couple of things to say. The RPI-to-CPI argument has been well rehearsed. The Minister mentioned that the rise in pension will take a single person’s pension to £142.70. I would make the point that, even at that level, the basic state pension here and in Britain is the meanest in the developed world. It is also worth pointing out that previous reports from British Governments have stated that the minimum needed for a pensioner to live on is approximately £170. So we are still far short of that. Obviously the move from RPI to CPI is a different argument, and parity is another issue that needs to be resolved. The Committee supported this SL1 back in February, so I support the motion.

Nelson McCausland (DUP, Belfast North)

I am pleased with the consensus of support across the Assembly for this uprating order. I thank the Social Development Committee for the positive way in which it has dealt with this matter. I am certain that we all welcome the significant increases to benefits made by the uprating order, and I commend the motion to the House.

Question put and agreed to.

Resolved:

That the Social Security Benefits Up-rating Order (Northern Ireland) 2012 be approved.

Committee Business

Roy Beggs (UUP, East Antrim)

The Business Committee has agreed to allow up to two hours for the debate. The proposer will have 15 minutes to propose the motion and 15 minutes to make a winding-up speech. All other Members who wish to speak will have five minutes.

Alban Maginness (Social Democratic and Labour Party, Belfast North)

I beg to move

That this Assembly approves the report of the Committee for Enterprise, Trade and Investment on its inquiry into developing the Northern Ireland economy through innovation, research and development; and calls on the Minister of Enterprise, Trade and Investment, in conjunction with her Executive colleagues, to implement, as applicable, the recommendations contained therein.

Mr Deputy Speaker, could some time be given for colleagues to arrive? There seems to be a dearth of colleagues in the House. I think that the time has caught them out.

Roy Beggs (UUP, East Antrim)

Standing Orders state that we must carry on unless we go below a certain threshold in the Chamber. I do not think that we have reached it, so we must continue.

Alban Maginness (Social Democratic and Labour Party, Belfast North)

I am happy to do so. I am honoured to propose the motion and to present the report from the Enterprise, Trade and Investment Committee to the House. The document is good and, in many respects, exciting, and it highlights the very serious issue of research and development and innovation in our economy in Northern Ireland.

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

First, I thank colleagues on the Enterprise, Trade and Investment Committee for their co-operation and hard work and for the consensus achieved on the report. In particular, I thank the Committee staff, who worked tremendously hard to compile the report over the past nine months. I also want to thank, in particular, Mr Robin Newton, who was asked to take on and accepted the position of rapporteur for the report. Unfortunately, due to illness, he was unable to fully discharge his responsibilities in that regard. However, I thank him for his work and encouragement on the report.

If we are to rebalance our economy, we have to be innovative. To be innovative, we need strong research and development in our economy and our businesses. That is the lifeblood of innovation, and if we do not have it we will not succeed in rebalancing our economy. Innovation and research and development play an essential role in developing new and improved products and services, in providing high-value, well-paid jobs and in creating and developing successful businesses. If we do not provide at least the same level and quality of support for innovation and research and development as is provided in other regions and countries, we will miss opportunities for investment, fail to grow our economy and rapidly fall further behind our competitors.

Given the range of programmes available to support research, levels of innovation and R&D in Northern Ireland are much lower than should be expected. The Barnett review found that in 2009, and the Treasury report of March 2011, which consulted on the rebalancing of the Northern Ireland economy, also noted low levels of R&D. We are not providing as high a level or quality of support as other regions and countries. It is essential that the opportunities to invest in innovation and R&D are fully exploited. It was for that reason that the Committee agreed to undertake the inquiry. During the inquiry, the Committee found that there was a wide range of opportunities available, from the complex EU framework programme 7 to the opportunities provided at a local level by district councils.

Evidence to the inquiry was mostly supportive of the available programmes and the work done by Invest Northern Ireland representatives on the ground. Most of the concerns expressed relate to the structures and processes that are in place to support research and development. They relate to the way programmes are integrated, managed, communicated and administered. Organisations, business and academic, face many barriers to becoming involved in research and development. Many companies, especially small and medium-sized enterprises (SMEs), are not aware of the support that is available and do not know whether they are eligible for opportunities or how to access them. Some companies may not even be sure whether the work that they do constitutes research and development.

The Committee found that, although many organisations may have good innovative ideas, they lack the capacity and capability to become involved in R&D. Many lack the people, skills, time and finances needed to avail themselves of opportunities. There was general agreement across government, business and academia that the commercialisation of research is where the long-term benefits will be realised. However, many correspondents believe that there must be more opportunities for business-led research and more support for the commercialisation of research and development.

The Committee was informed that more needs to be done to help companies to manage the risks associated with research and protect intellectual property rights. More needs to be done to help organisations to navigate the complex bureaucracy associated with funding processes and, specifically, to help SMEs and microbusinesses.

The Committee could have looked at the issues and provided the Department with a report listing things that needed to be improved in the current structures, but the problem is much wider than that. The issues identified by the Committee will not be resolved by adding to the current structures and processes and continuing as before. If Northern Ireland business and academia are successfully to exploit the current and future opportunities for innovation in R&D and achieve a competitive advantage in an increasingly global marketplace, an entirely new way of thinking is required. Many businesses, both universities and a number of FE colleges and research institutes are doing excellent work to drive the innovation and R&D agenda, but the current structures and processes being deployed to support R&D were designed for a different time and purpose. Innovation and R&D have now come to the forefront as key drivers for rebuilding and rebalancing the economy. As far as the current delivery structures for R&D are concerned, we are living in the golden age of steam, when what we need is a high-speed, high-capacity link straight to the heart of Europe and beyond. To achieve this, there must be an integrated and holistic approach to supporting innovation and R&D. It should be all-inclusive and must be designed to meet the needs of large businesses, SMEs and microbusinesses. It must take full account of the contributions that could be made from government and academia at all levels. The approach should be underpinned by a clear vision and must include policies, strategies, structures and processes designed specifically to meet the long-term challenge of maximising the potential for Northern Ireland businesses and academia to take advantage of existing and future opportunities for innovation.

The Committee has recommended two structures that will be key to long-term success. The first is a high-level steering group, comprising government, business and academia to advise on policy and oversee the integration and co-ordination of R&D activity. There is already a high-level steering group in existence for framework programme 7; therefore, the bones of a steering group for all R&D activity may already be in place. The second structure that the Committee has recommended is a single unit to integrate and co-ordinate all innovation and R&D activity. The unit should have responsibility for improving knowledge of and information on R&D; developing programmes and processes to meet the needs of business and academia; implementing support, including promotion, education, mentoring and providing practical support; and, importantly, developing and supporting a culture of innovation and R&D across government, business and academia. R&D should be as familiar to all businesses as sales and marketing. Those two structures will help to raise Northern Ireland to a new level of achievement in research and development. They will provide a sound and lasting platform from which to implement many of the other recommendations in the report.

The opportunities for research and development will grow. The next EU framework programme for research and development, Horizon 2020, will be launched in 2014, just 18 short months from now. That will provide €80 billion across Europe for R&D projects. We are told that it will be much more suited to the needs of SMEs than its predecessor and that it will be much less bureaucratic and easier to manage. A guarantee on that was provided by EU Commissioner for Research, Innovation and Science, Máire Geoghegan-Quinn, when she visited the Assembly last week. She also said that much R&D in Europe is being commercialised elsewhere and that Horizon 2020 will provide support for R&D almost to market. She said that Horizon 2020 will be about future-proofing our economy. We must ensure that Northern Ireland is well prepared to avail itself of the opportunities and challenges that Horizon 2020 will bring.

Although the opportunities will grow, the challenges will also grow, and so will the competition for research projects. The Committee has been told that the success rate for Northern Ireland applications to the current framework programme is around 20%, with the costs of going through the process being measured in the tens of thousands of pounds. If businesses are to be encouraged to become involved in Horizon 2020, we must work to increase significantly the success rate of applications. That means much more shared learning across government and more hands-on support for businesses.

It is not only for Horizon 2020 that support is required; help must be provided to support small mature companies, new and growing companies and other innovative companies. Invest NI’s innovation escalator approach is designed to remove companies from a short-term, market-led approach to innovation to a long-term, technology-led approach. Why does that have to start at the level of Invest Northern Ireland? Surely the Federation of Small Businesses, the Institute of Directors and local enterprise agencies can be involved to stimulate and capture the imagination of businesses that may not yet have considered innovation.

Those structures are important, but they will take time to establish, and the Department cannot afford to wait to implement the other recommendations in the report. A start must be made now to improve our knowledge and information, to review and improve our programmes, to provide more hands-on practical support and to develop a culture of R&D. Many businesses do not know where to turn or how to get support on issues such as building capacity and capability, intellectual property rights, consortia building to support R&D and support for the development of ideas. We must have a culture in place where the answers to those questions are readily accessible or, more appropriately, where all businesses have the answers to hand.

One of the most frustrating issues for both business and academia is the high level of bureaucracy associated with R&D. There must be improved support for organisations to cope with the bureaucracy involved, and there must be increased efforts to reduce the bureaucracy required.

I draw attention to some of the short-term measures recommended by the Committee. It recommended that Invest Northern Ireland should consider how to open up its mentoring schemes to wider participation. It currently undertakes mentoring for framework 7, but many smaller organisations would benefit from mentoring for some of the smaller programmes on offer. As everybody knows, businesses are struggling for finance, and cash flow is a real issue for many of them. It is difficult for businesses to invest in long-term R&D projects that divert funds from day-to-day operations. Having to wait 90 days for a grant to be awarded could be crippling, and that delay should be reduced. Surely 30 days would be more than sufficient.

The small business research initiative (SBRI) is a UK-wide initiative that engages companies in competitions for ideas that result in short-term development contracts. Northern Ireland companies punch well above their weight in securing contracts in Britain. However, SBRI is not used in Northern Ireland. That is a missed opportunity. The Department of Finance and Personnel should take steps to introduce and promote the SBRI. Venture capital should be encouraged. We should appoint a chief scientific officer and establish a science steering committee.

John Dallat (Social Democratic and Labour Party, East Londonderry)

Bring your remarks to a close, please.

Alban Maginness (Social Democratic and Labour Party, Belfast North)

Overall, the recommendations in the Committee’s report represent a holistic approach to supporting innovation across all levels and, if implemented in an integrated and co-ordinated fashion, can only result, in the long term, —

John Dallat (Social Democratic and Labour Party, East Londonderry)

Time is up.

Alban Maginness (Social Democratic and Labour Party, Belfast North)

— in putting Northern Ireland at the forefront of innovation and research and development. I commend the report to the House and seek its support for the motion.

Stephen Moutray (DUP, Upper Bann)

As a member of the Enterprise, Trade and Investment Committee, I support the motion. Back in March, in the debate on the draft economic strategy, I made the point that we must improve in areas such as research and development, innovation, creativity and skills. Today’s debate and, indeed, the report before us will further reinforce that point. Many of us in the House have personal experience of running a business or, if we do not, know others who do. If we have our ear to the ground, as we ought to, we will be very aware of the pressures and constraints under which those businesses operate in the current economic climate. The years of the Troubles, coupled with the past few years of financial crises and recession, have not exactly created a climate in which businesses, especially smaller businesses, are willing to invest in innovation or research and development.

Just after the Assembly elections, this time last year, it became clear to our Committee that levels of innovation and R&D were not what they should be. We decided that it would be worthwhile to spend some time and effort on an assessment of where things stood. As we did so, we were concerned by some of the evidence we uncovered. Of course, we were required to do more than merely investigate. Having considered all the evidence presented to us, we have made a series of important recommendations, which are contained in the report before the House.

In Northern Ireland, expenditure on R&D is somewhat behind the rest of the UK and Europe. Over the past five years, the amount invested by business here has averaged at 0·69% of GVA. That is almost half the figure for the UK as a whole. The scale of the problem becomes even more stark when you realise that most of the expenditure on R&D in Northern Ireland is focused on a small number of companies, mainly externally owned firms and large enterprises. In 2009, just 10 companies were responsible for over half of all investment in R&D. Although foreign direct investment has long been part of the business and industrial landscape of Northern Ireland and we welcome such investment, the fact remains that the backbone of our economy has always been the smaller, local, often family-run businesses. It is here that the main problems in relation to innovation and R&D are to be found. In the present climate, SMEs often struggle just to keep their head above water and maintain a meaningful profit margin. They are living almost day to day and are reluctant to take the risk of investing time and money in research and development. They might be unaware of the support and opportunities available to them or, if they are aware, are perhaps not sure whether it is relevant to them or that they would even qualify.

A further problem for SMEs — to me, it is a major problem — is the fact that they are faced with high and unacceptable levels of red tape when they get involved in R&D programmes. That is especially the case with the range of EU-funded R&D programmes. It is hard enough for bigger companies to make their way through all the paperwork and form filling; just think what it is like for a small family firm.

It must be recognised that many of the key agencies are working hard to address some of the issues and encourage businesses to take up any opportunity to engage in R&D. We appreciate all that has been done. The Committee was encouraged by respondents who spoke about the positive and helpful role of Invest NI. Invest NI has played a major part in the efforts to reduce bureaucracy, and we are grateful to it. DETI itself is very aware of the importance of R&D and the need to continue to attract high value-added FDI to ensure sustained and meaningful economic growth. However, as our report states:

“While much is being done at a strategic level there is also evidence that there is considerable disconnection between programmes, between Government, business and academia and within each of the three sectors.”

Perhaps that is the hub of the problem. Valiant efforts are being made at various levels, and we are encouraged by some of the evidence presented to us, but, as in so many areas of public life, a joined-up, cross-cutting and holistic approach will enable us to maximise the impact and effect of all the good work that has been done. That is why we recommend the creation of a high-level steering group to oversee, co-ordinate, direct and promote R&D across the three sectors. We feel that such a body would go a long way towards creating a real culture of innovation and R&D. It has the potential to offer real help and encouragement and to advise businesses. It must be effective and efficient, and it must deliver.

I have spoken about the dangers of red tape and bureaucracy. We must, therefore, be careful to ensure that any new steering group —

John Dallat (Social Democratic and Labour Party, East Londonderry)

Bring your remarks to a close, please.

Stephen Moutray (DUP, Upper Bann)

— that is set up does not itself become part of the bureaucracy.

John Dallat (Social Democratic and Labour Party, East Londonderry)

I call Mr Daithí McKay.

Daithí McKay (Sinn Féin, North Antrim)

A LeasCheann Comhairle, I am winding on the debate.

John Dallat (Social Democratic and Labour Party, East Londonderry)

I call Mrs Sandra Overend.

Sandra Overend (UUP, Mid Ulster)

I welcome very much the opportunity to contribute to the debate on the Enterprise, Trade and Investment Committee’s inquiry into developing the Northern Ireland economy through innovation, research and development. I thank the Committee staff and the Committee Clerk for the hard work that they have undertaken in compiling this comprehensive report. I also thank the very many stakeholders who contributed to and shaped the inquiry.

In these difficult economic times, it is imperative that we utilise all opportunities available to us that will assist the Northern Ireland economy to grow. A vital component of that will be Northern Ireland fully drawing down as much research and innovation funding as it can from the variety of opportunities and programmes that are available. To achieve that goal, the Ulster Unionist Party welcomes the recommendations set out in the Committee inquiry report. They will allow Northern Ireland to maximise the potential for businesses and academia at all levels to take advantage of existing and future opportunities for innovation, research and development. In particular, it is essential that we increase uptake from the European funding streams that are available.

Europe 2020 is a 10-year strategy that was proposed by the European Commission in March 2010 for reviving the economy of the European Union. It aims at smart, sustainable, inclusive growth, with greater co-ordination of national and European policy. One of the five main aims of that strategy is to achieve the target of investing 3% of GDP in R&D. Northern Ireland lags far behind that, with business expenditure in R&D over the past five years averaging at only 0·69%. Currently, the main stream of research and innovation funding from the EU is FP7, which is worth almost €50 billion. However, from 2014 to 2020, that will be replaced by a new funding stream known as Horizon 2020, which will be worth almost €80 billion. It will be the largest research and innovation funding stream anywhere in the world, and it is the EU’s new programme for research and innovation. It will form part of the drive to create new jobs and growth in Europe.

With that in mind, I was delighted to have the opportunity to discuss the new programme with the Commissioner for Research, Innovation and Science, Máire Geoghegan-Quinn, on her recent visit to Northern Ireland. In order to maximise the full potential of the forthcoming programme, it is essential that Northern Ireland works towards overcoming many of the barriers outlined in the Committee’s report and implements its recommendations to ensure that we do not end up in a situation where we lag behind other member states in the drawdown of funding, as has traditionally happened in the past. The opportunities must be promoted to all the businesses and organisations across Northern Ireland that are eligible. That must be followed up with structured support and assistance, particularly during the application process, to ensure research and innovation funding is drawn down.

The Ulster Unionist Party has continually highlighted the potential European funding available for research and innovation, particularly through our MEP, Jim Nicholson. As the Ulster Unionist Party’s economy spokesperson, I was particularly concerned to learn that many of the barriers facing organisations that were trying to get involved in research and development related to the sheer complexity of the application process and the unnecessary bureaucracy that seems to exist around research and innovation funding, particularly where Europe is involved. I was, therefore, pleased to learn that Horizon 2020 will provide a major simplification of the rules from those set for previous funding programmes.

The Committee’s report recommends that preparation for Horizon 2020 should commence immediately, including an assessment of what Northern Ireland can offer in business and academia to funding opportunities that will be available through Horizon 2020. That must also be implemented alongside a long-term strategy and implementation plan, developed with appropriate resources for the promotion of opportunities for R&D, education and mentoring, practical support through projects and awareness programmes. In addition, Northern Ireland must ensure that the focus of much of the support is directed towards our SMEs and microbusinesses, which have, for too long, missed out on the opportunities that research and innovation funding can provide. The Committee for Enterprise, Trade and Investment heard that just 10 companies accounted for around 57% of all businesses’ R&D investment in 2009. It is essential that we endeavour to reduce the time between applications being made and the receipt of funding.

The Committee heard from many stakeholders of the great benefits of research and innovation and how it is necessary to improve and develop business opportunities. I refer also to a visit to the InnoTech Centre in my constituency of Mid Ulster. I will conclude there, Mr Deputy Speaker.

John Dallat (Social Democratic and Labour Party, East Londonderry)

As Question Time begins at 2.30 pm, I suggest that the House takes its ease until then. The debate will continue after Question Time, when the next Member to speak will be Judith Cochrane.

The debate stood suspended.

Agriculture and Rural Development

John Dallat (Social Democratic and Labour Party, East Londonderry)

Question 13 has been withdrawn and requires a written answer.

Stewart Dickson (Alliance, East Antrim)

1. asked the Minister of Agriculture and Rural Development to outline how her Department is working on a cross-departmental basis to promote renewable energy generation. (AQO 2106/11-15)

Michelle O'Neill (Sinn Féin, Mid Ulster)

Go raibh maith agat, a LeasCheann Comhairle. It is well recognised that the agriculture and forestry sectors have a key role to play in the development of sustainable and renewable energy. My Department is represented on the sustainable energy interdepartmental working group, which was established in January 2009 with the aim of ensuring a co-ordinated approach across the Executive to the promotion of sustainable energy. The group’s objective is to enable Departments to ensure that energy-related policies and practices are in concert with one another, with the aim of maximising the use of public funding and delivering value for money. The working group has four subgroups: bio-energy; sustainable communications; economic opportunities; and energy efficiency. My Department is represented on all those subgroups, with the exception of the sustainable communications group.

Looking forward, my Department, working with others, will attempt to ensure that the renewables sector has access to the €80 billion innovation and research funding on offer between 2014 and 2020 through the new European Horizon 2020 programme.

Stewart Dickson (Alliance, East Antrim)

The Minister may be aware that Northern Ireland Water is the largest consumer of electricity in Northern Ireland and that it leases land on a long-term basis to the Forest Service. There are opportunities to develop wind energy generation on that land. Minister, will you assure us that your officials will work with Northern Ireland Water to ensure that wind turbines can be placed as economically as possible on the land and that there will be full co-operation between Departments to allow that to happen?

Michelle O'Neill (Sinn Féin, Mid Ulster)

As I said in my answer, I am committed to the promotion of renewable energy by looking at all avenues and potential areas. The Department has a renewable energy action plan that looks at how we can work co-operatively with other Departments and agencies. I do not have a problem in working with any agency to promote renewable energy.

Ross Hussey (UUP, West Tyrone)

Northern Ireland’s agrifood industry has become one of the foremost innovative industries here, and my party has no doubt that that industry will be able to diversify into the renewable energy market very effectively. Is the Minister aware that farmers in some areas of Northern Ireland are facing significant challenges arising from competition for grasslands with the proprietors of anaerobic digesters? What advice can she offer farmers in such circumstances?

Michelle O'Neill (Sinn Féin, Mid Ulster)

I agree with the Member’s point about the agrifood industry and its performance. The availability of grasslands will always be an issue, given that there is a growing world population and a growing demand for food, which means that our farmers will have to produce more. The availability of land is obviously a considerable issue that needs to be taken into account.

As regards working with farmers, if farmers have any concerns, there are many avenues they can go down, not least visiting any DARD Direct office across the North or going directly to the Department, and I encourage them to do that. The Department works very closely with the two educational colleges to promote renewable energy and to help farmers diversify and look at the challenges they face. This is just another area in which the Department is involved.

Alban Maginness (Social Democratic and Labour Party, Belfast North)

I do not detect any great enthusiasm or energy — if I can use that word — in the Minister’s approach. Will she reassure the House that she will, in fact, act as a champion in the Department of Agriculture and Rural Development (DARD) and in the Executive by encouraging renewable energy on farmland across Northern Ireland?

Michelle O'Neill (Sinn Féin, Mid Ulster)

I do not agree with the Member’s assertion that I am not energetic, particularly on renewable energy. There is an Executive commitment to increase renewable energy, and DARD has such a policy and a renewable energy action plan. DARD also holds practical on-farm renewable energy events at Greenmount in Enniskillen. Again, this is about getting information to farmers and letting them see what is available and what support is there for them to look at renewable energy as a way forward. Those seminars and workshops are ongoing year on year. I think that farmers are very keen to learn more about renewable energy. There is a lot of potential, particularly if farmers collaborate. Sometimes, they cannot produce enough energy on their own farms, but by working together, the potential is massive.

Roy Beggs (UUP, East Antrim)

2. asked the Minister of Agriculture and Rural Development, further to the December Fisheries Council meeting, for an update on the work being carried out to identify technology to reduce the whitefish by-catch. (AQO 2107/11-15)

Michelle O'Neill (Sinn Féin, Mid Ulster)

At the last December Fisheries Council, I committed to an objective for the Irish Sea that, by 1 July 2012, the nephrops fleet would fish with gears that would enable it to secure exemption from the effort regime as laid down in article 11 of the cod plan. The commitment is to use measures that result in a catch of less than 1•5% cod and not only a general reduction in whitefish by-catch. A selective gear trial project has been established, led by the Sea Fish Industry Authority and involving industry, net makers, scientists, gear technologists and officials from my Department. Trials involving four different gears began at the beginning of April and finished last week.

Work is now urgently under way to analyse the results and produce findings of the report. Early indications are that, as expected, grid-type gears are very efficient at separating prawns from whitefish but do not appear suitable for all fishing vessels or all fishing grounds. In particular, they are prone to clogging by seaweed and other debris. The most promising gear tested uses a large square mesh panel in a modified cod end and additional trials were carried out to improve that design further. I am expecting a final report to be available later this week.

Roy Beggs (UUP, East Antrim)

I thank the Minister for her answer. Will she acknowledge that there is considerable frustration within the fishing community at the slowness in introducing better mechanisms for minimising fish by-catch? Is she aware of the concern of the fishing community that there are already indications from officials, through the Environment Committee, that it could be further adversely affected by the maritime Bill as presently constituted?

Michelle O'Neill (Sinn Féin, Mid Ulster)

I thank the Member for the question. In December last year, the Commission had moved to impose a Swedish grid on the industry. That would have been devastating, because the industry does not believe that the Swedish grid is appropriate for all fishing grounds in the Irish Sea. In conjunction with the industry, and after talking to it at some length, I went to Brussels and put a proposal to the Commission, which the Commission accepted. The proposal was that we would trial our own gear; a gear that is acceptable to and suitable for our industry. That is the position that we are in. That is something that we have done along with industry, and we will continue to do so.

As I said, I will get a report later this week, but we hope to be on target to meet what we promised to the Commission, which was actually very positive for the industry, in that it exempted us from the days-at-sea cuts that would have been forced upon us if we were not able to get to that position.

The maritime Bill is Department of the Environment legislation, and I will always make sure, through the Department, that the needs of the fishing industry will be taken into account as all policy is developed.

Paul Frew (DUP, North Antrim)

I thank the Minister for her answers around this very important issue for the fishing and trawler industries. We are aware that the trials have taken place and the findings are due to be published soon. What can the Minister tell us at this time, before the report is published? Is she hopeful that there are answers to be found within the trials that would help to end the days-at-sea dilemma for our fishing industry?

Michelle O'Neill (Sinn Féin, Mid Ulster)

I think it is fair to say that we have made very good progress so far. The fact that we have worked with the industry in developing a gear that is acceptable to it — the industry has trialled it and knows that it works — has been key to us arriving at the position that we are in. As I said, I hope to have details of the final report by the end of the week. Also key to that has been keeping the Commission on board and informed about what we are doing. When we get the report at the end of the week, I will obviously have to discuss that with the Commission, but, at this stage, things seem to be relatively positive. We have trialled everything successfully and we are meeting the needs of our industry.

Christopher Hazzard (Sinn Féin, South Down)

Go raibh maith agat, a LeasCheann Comhairle. When will the cod recovery plan be reviewed?

Michelle O'Neill (Sinn Féin, Mid Ulster)

I think everyone would agree that the cod recovery plan has not worked. The Commission had promised a review at the start of 2012, but the timetable for that seems to have slipped. There are some technical amendments coming forward later in the year, but as for when the Commission officially plans to review the cod recovery plan, we will have to keep that under review.

Karen McKevitt (Social Democratic and Labour Party, South Down)

What progress has been made towards bringing forward proposals for the regionalisation of quota allocations and other measures that would pump-prime the fishing industry in south Down?

Michelle O'Neill (Sinn Féin, Mid Ulster)

I am going to Luxembourg tomorrow for discussions on the common fisheries policy. We hope that it may be the end of the negotiations. Tomorrow will probably be a very important day in meeting the needs of our fishing industry. Regionalisation is a key part of the common fisheries policy. We have argued strongly all along that we need to be able to suit the needs of our industry, not to have one blanket approach across Europe that does not impact positively on us at times. The key is regionalisation. It is about flexibility and suiting the needs of our industry.

Michael McGimpsey (UUP, Belfast South)

3. asked the Minister of Agriculture and Rural Development to outline the discussions she has had with her Executive colleagues in relation to addressing the mental health needs of people living in rural areas. (AQO 2108/11-15)

Michelle O'Neill (Sinn Féin, Mid Ulster)

Ensuring proper services to address mental health issues in rural areas is a high priority of mine. As you are aware, the Department of Health is the lead Department with regards to mental health provision. However, it can be a particular issue in rural areas due to their somewhat remote and isolated nature. Also, the stigma attached to mental health means that sometimes it is not openly discussed.

Earlier today I met the Minister of Culture, Arts and Leisure to discuss how our respective Departments could work together to better address suicide and mental health issues. Naturally, my aim is to maximise awareness and support to rural dwellers regarding this emotive subject.

As part of the rural White Paper action plan, I met Minister Poots to discuss a range of measures to support the health and well-being of rural dwellers. Following this meeting, my officials have been working closely with Public Health Agency officials to bring forward health checks for rural communities. Part of this initiative will involve a signposting service to mental health support services. I am delighted to announce that the Executive approved the rural White Paper action plan on 31 May. That is a key document in ensuring that we have cross-departmental support to tackle all the issues that are relevant to the people we represent.

I also discussed the maximising access in rural areas project with Minister Poots. DARD and the Public Health Agency are working collaboratively on this to ensure that those who are most vulnerable in society are accessing what they are entitled to. The project is an initiative based on the premise that visiting people in their own homes encourages them to avail themselves of services and grants that they would not otherwise have known about.

While identifying the issues that exist in rural areas, DARD worked in tandem with a number of Departments and agencies to support rural dwellers, with householders completing a health and well-being assessment and receiving advice on the available local and regional services. Trained enablers who have received certified training in safeTALK, which is a suicide-awareness programme, and in safeguarding vulnerable adults carry out this service and bring any concerns to the attention of the local social services department.

John Dallat (Social Democratic and Labour Party, East Londonderry)

Your time is up.

Michael McGimpsey (UUP, Belfast South)

I thank the Minister for her very comprehensive answer. She will be aware that mental ill health is often a consequence of the stress associated with financial difficulties. Bearing in mind the financial challenges that are facing society in general, what steps does she believe her Department can take to ease the process of payments made by the Department through, for example, single farm payments, to take some of the stress out of the difficulties faced by many farmers?

Michelle O'Neill (Sinn Féin, Mid Ulster)

As the Member will be aware, I think it is key that Departments work together, because suicide prevention and good mental health is not just the job of the Department of Health. Some areas of work that I talked about earlier in which Departments are collaborating are key in tackling social isolation and lack of access to services, as well as making sure that we are targeting those people who feel vulnerable.

I take my responsibility around financial difficulties very seriously, as that can often be a factor in people’s mental health and how they are feeling in general. I fund a number of initiatives, including the rural support helpline, Rural Connect. I encourage people to use those phone lines to get in touch with the Department if they are having difficulties.

My Department has targets for processing payments, and it is a key aim to meet those and to get payments out to people as soon as possible. It is true that payments were slower in getting to some people this year. We have reached our targets, but a small number of people, approximately 1,000, still need to be paid, and I think it is key to get those payments out. I have listened directly to people and their stories of how that impacts financially and the stress that that brings, so my aim is to ensure that those payments are made as quickly as possible.

Kieran McCarthy (Alliance, Strangford)

Go raibh maith agat, a LeasCheann Comhairle. I thank the Minister for her responses so far. She mentioned a number of Departments, including Health and Culture, Arts and Leisure, but she has not mentioned the Department for Regional Development (DRD), which is responsible for community rural transport.

Its budget has been cut, and the effects have transferred right down to the community. Fewer and fewer people are able to avail themselves of DRD services to get to hospitals. In my constituency, that could be from the tip of the peninsula to the proposed Lagan Valley hospital for mental health. Will the Minister advise whether she will be in touch with her DRD counterpart to try to overcome the problems that we have in rural areas?

Michelle O'Neill (Sinn Féin, Mid Ulster)

I thank the Member for his question. Absolutely. I will continue to engage with all Departments, including DRD. As I said, the Executive agreed the rural White Paper action plan, which looks at the rights of people in rural areas and the issues that they face, particularly transport issues. My Department’s ‘Tackling Rural Poverty and Social Isolation Framework’, which I launched recently, is looking at working with DRD to fund some rural transport, which is a very worthy initiative. I come from a rural area, so I know how difficult it can be for people to access public transport. That is a practical example of how I am working with DRD. I will continue to work with DRD through the rural White Paper action plan.

Gregory Campbell (DUP, East Londonderry)

The Minister will be aware, as I have written to her about it, of the issue of adults with learning difficulties and how they access services in rural areas. Does she agree that those in the community and voluntary sector who open up offices in rural areas for people with learning difficulties, including mental health difficulties, should operate from premises that are accessible to all sections of the community and that there should be nothing in or on those offices that might deter people from accessing those services?

Michelle O'Neill (Sinn Féin, Mid Ulster)

I thank the Member for his question. As he said, he wrote to me on this issue. I absolutely agree with you about the value of the work that the community and voluntary sector does in supporting vulnerable people; it is second to none. Quite often, that sector is filling the gaps and doing things that should be done by the Department but are not. That sector is key to moving forward. Accessibility is a very simple, plain issue. Everywhere should be open for everybody to be able to access, regardless of whether they are able-bodied or not.

Sydney Anderson (DUP, Upper Bann)

4. asked the Minister of Agriculture and Rural Development for an update on the action being taken to help farmers and rural dwellers to reduce the risk of theft. (AQO 2109/11-15)

Jonathan Craig (DUP, Lagan Valley)

15. asked the Minister of Agriculture and Rural Development what measures she has taken to combat the theft of agricultural machinery in rural communities. (AQO 2120/11-15)

Michelle O'Neill (Sinn Féin, Mid Ulster)

With your permission, Mr Deputy Speaker, I will answer questions 4 and 15 together.

I am very aware of the increasing number of thefts on farms. I have met the Minister of Justice and the Chief Constable to highlight the increase in rural crime and the concern that it is causing in the farming community. A further meeting with the Chief Constable is planned for later in the month, at which I plan to review progress with him. I will continue to work closely with the Minister of Justice on raising awareness of rural crime. I welcome local initiatives brought forward by community safety partnerships to prevent rural crime, such as trailer marking and the forensic marking of sheep. I am encouraging farmers to participate in those initiatives and to continue to ensure that they secure their properties by taking steps to minimise the risk of theft from their farms.

I was pleased to take part in the launch of the Farmwatch scheme in County Fermanagh in April. That scheme was developed by one of the neighbourhood policy teams in Fermanagh and uses funds from the assets recovery incentivisation scheme. It has a number of strands, including sheep retina scanning; the forensic marking of machinery; recording of assets on a police database; and a texting service to alert participants to any suspicious activity in an area. Every participant receives a personal visit by the neighbourhood policing team to discuss farm security. I am pleased that the scheme has been very well received, and there are plans to roll it out to other policing areas. In my meeting with the Chief Constable, I will encourage him to make that scheme widely available.

My departmental officials are also working closely with the PSNI and an Garda Síochána in relation to the theft of livestock and related crimes. That has included the training of police officers in livestock identification and movement controls, and the establishment of round-the-clock communication channels. My officials have also been involved in joint investigation visits with the PSNI, which has led to the recovery of stolen livestock.

Sydney Anderson (DUP, Upper Bann)

I thank the Minister for her very comprehensive answer. I and my colleague Stephen Moutray met the local PSNI this morning. One of the issues discussed was rural crime and the effect that it is having on the rural community. The Minister has had many meetings with the Minister of Justice, the police, and so on. Would she support the formation of a task force, comprising the police, rural watch groups, insurance companies, farmers, and suchlike, to get something off the ground? I know that there is an idea in the local community to make better contact and to see what positive results could be achieved from having such a grouping.

Michelle O'Neill (Sinn Féin, Mid Ulster)

I thank the Member for his question. He will be aware that responsibility for rural crime rests with the PSNI and the Department of Justice. However, were a task force to be formed, I would not have a problem with getting involved with it via the Department. Some of the initiatives on the ground are very positive, and if we could get them rolled out right across the North, that would be significant. Some of the things demonstrated at the Crimewatch scheme that I was involved in launching in Fermanagh were spectacular — sheep are even able to be identified through retina scanning. I will raise the Member’s issue with the Chief Constable when I meet him in the near future.

Jonathan Craig (DUP, Lagan Valley)

I thank the Minister for her initial comprehensive answer. It is quite interesting to hear of all the PSNI initiatives that are going on. Will the Minister assure the House that a number of those initiatives will be rolled out? One of the most beneficial is vehicle identification, but I will not go into the details of it, because we do not want some people to know about it. If any financial assistance could be given to ensuring the roll-out of that initiative right across Northern Ireland, that would be preferential, because it is very effective in the recovery of stolen assets.

Michelle O'Neill (Sinn Féin, Mid Ulster)

I thank the Member for his contribution. When I meet the Chief Constable, I will be happy to raise the issues that have come up in today’s questions. As you say, some very positive initiatives are already happening, and it is key that they are rolled out. It is the Chief Constable’s responsibility, and I think that of the Policing Board, to ensure that the programmes are rolled out right across the North, but I will certainly be impressing on the Chief Constable that that would be beneficial.

Michaela Boyle (Sinn Féin, West Tyrone)

I thank the Minister for her answers. What measures are in place to support victims in the aftermath of crime, particularly farmers and rural dwellers?

Michelle O'Neill (Sinn Féin, Mid Ulster)

I thank the Member for picking up on the issue of victims, who are those people targeted by rural crime. The Department of Justice (DOJ) funds Victim Support, which supports victims of crime. Recent research from Victim Support indicates that victims of crime from rural areas are much less likely to seek support from it and use its services. That is concerning, given that many rural dwellers wrestle with the issue of isolation, and that often exacerbates the impact of crime. Therefore, the Department is working with Victim Support to see how we can get a better response to its services and actively encourage people to seek support if they are victims of crime.

Leslie Cree (UUP, North Down)

I have no doubt that the Minister is concerned about the current spate of thefts across the rural community. However, it was the same last year and indeed the year before, and the Minister today has outlined the steps that are being taken. At the risk of sounding repetitive, those steps were mentioned before, going back two years. Is there anything that can be done or any urgency that can be applied to the whole issue now to make a difference to the number of thefts?

Michelle O'Neill (Sinn Féin, Mid Ulster)

I am absolutely aware that the levels of rural crime have increased over the past number of years. There are emerging technologies, and some of those that I mentioned earlier are helpful, but I think that the responsibility for combating rural crime lies with the police and the Department of Justice, and I will continue to work with them to ensure that I do my bit to support rural dwellers and farmers.

The Department of Justice is responsible for collating the statistics from the past number of years, and I refer you to it for a look at the figures. However, as I say, some innovative technologies are coming forward to help to tackle rural crime, and I will continue to work with the police and the Department of Justice.

Patsy McGlone (Social Democratic and Labour Party, Mid Ulster)

Gabhaim buíochas leis an Aire chomh maith. There is a very worrying trend of violent crime, particularly in some of our more isolated rural areas. The Minister and I share a constituency, and there has been one particular instance of violent crime in recent times, the detail of which we obviously cannot get into today because of ongoing investigations.

Will the Minister give us a steadfast assurance that, in the various pilot schemes that are being conducted throughout the North and through the collaboration that should occur between the likes of DOJ and the PSNI, good practice will be replicated right across the North? Good things often happen in certain areas that are not shared with other areas. Will the Minister please assure us that that will be done?

John Dallat (Social Democratic and Labour Party, East Londonderry)

I am sure that the Minister got the gist of that question.

Michelle O'Neill (Sinn Féin, Mid Ulster)

I have absolute sympathy with the family about whom the Member spoke. There is a difference between agricrime and rural crime, and they have to be addressed separately. Agricrime was what I referred to earlier when I mentioned the theft of machinery and cattle. Rural crime is very different, and I know that that is what you were referring to. When I meet the Chief Constable, Matt Baggott, the two topics discussed are agricrime and rural crime. I absolutely condemn those actions, particularly the case that you spoke about, which was a vile, violent attack on a young man. I will raise the issue with the Chief Constable when I meet him in a few weeks’ time.

Robin Swann (UUP, North Antrim)

5. asked the Minister of Agriculture and Rural Development what action her Department is taking to tackle bovine viral diarrhoea. (AQO 2110/11-15)

Michelle O'Neill (Sinn Féin, Mid Ulster)

Bovine viral diarrhoea (BVD) is not a statutory disease. Its impacts are primarily felt at farm level, so it is for the industry to take the lead in any initiative to deal with it. Therefore, I welcome the fact that there is an increasing desire in the industry to tackle BVD and other conditions that are not subject to statutory control programmes.

Last month, I met industry representatives to discuss their plans for an industry-led organisation to develop and promote control programmes to tackle diseases such as BVD. As experience elsewhere has shown, a commitment from industry to funding such initiatives on production diseases will be critical to their sustained success. I was, therefore, encouraged to hear that the group is securing private investment to support the new approach. I was also pleased to hear about the plans to establish formal collaborative links with industry in the South, as taking an all-island approach will definitely help trade right across the island. There is real potential to improve the competitiveness of the sector through tackling these diseases, so I am very keen to get the initiative off the ground as soon as possible. At last month’s meeting, I agreed, in principle, to match financial contributions committed by industry stakeholders. Obviously, those will have to be subject to an economic appraisal, but, in principle, I absolutely agree with match contributions.

My officials have been working closely with industry on the initiative and providing advice. We are also considering whether support could be provided under the training measures in the rural development programme. That would help to make farmers aware of the steps that they can take to tackle BVD and the advantages of doing so. The Department is also supporting an industry-led BVD research project through the research challenge fund aimed at determining the prevalence of the virus. I look forward to hearing how the initiative progresses, and the Department will continue to work with the industry.

Robin Swann (UUP, North Antrim)

Minister, the Scottish authorities are proposing a ban on the sale, or even movement, of persistently infected animals. What is your assessment of that proposal? Would you consider bringing in such a ban in Northern Ireland to support the industry?

Michelle O'Neill (Sinn Féin, Mid Ulster)

There has been no call for a ban from the industry, which wants to tackle production diseases and BVD. The working group has done a lot of work over the past number of months. The economic benefits of dealing with BVD speak for themselves, and farmers are aware of them. Farmers would very quickly receive payback for the small amount that it would cost for testing. If we were able to eradicate BVD and take the infected cattle out of the farms, the economic benefits would speak for themselves. As I said, there has been no call for a ban. The industry wants to tackle the issue and believes that we can do so in a short time frame. This is not a long-term plan; we can tackle it quite quickly.

Joe Byrne (Social Democratic and Labour Party, West Tyrone)

I thank the Minister for her answers. Does she accept that the Department needs to lead very strongly on the eradication of bovine TB? It is crucial that Northern Ireland achieves the disease-free status that Scotland has had for many years. We have spent an awful lot of millions on a scheme to eradicate TB that has not yet realised its potential.

Michelle O'Neill (Sinn Féin, Mid Ulster)

I thank the Member for his comments. Tackling TB and brucellosis (BR) are key issues in the Department. We have a target of 2014 for eradicating BR, and we hope to be able to deliver on that. The Member will be aware that TB is an emotive issue and a complex disease. There is no simple solution or quick fix. If there was, we would apply it. We are working with the industry and have some proposals coming forward to tackle TB. A £4 million TB research and wildlife programme is ongoing, and I hope to introduce further initiatives in the near future.

Education

John Dallat (Social Democratic and Labour Party, East Londonderry)

Question 9 has been withdrawn and a written answer is required.

Dolores Kelly (Social Democratic and Labour Party, Upper Bann)

1. asked the Minister of Education for his assessment of the prevalence of homophobic bullying in Northern Ireland in light of ‘The Teachers’ Report’, which identified homophobic bullying in Great Britain as being three times more prevalent than bullying on the grounds of religion or race. (AQO 2121/11-15)

John O'Dowd (Sinn Féin, Upper Bann)

The Stonewall teachers’ report deals specifically with homophobic bullying and teaching about sexual orientation. It reports the views of staff from primary and secondary schools across Great Britain. There is no equivalent report on the views of staff here. However, every five years, we seek the views of pupils and staff about the nature and extent of bullying in our schools. The sample that is used is representative of the primary and secondary sectors.

Some 120 schools are involved and the views of more than 2,000 pupils from years 6 and 9 and around 200 school staff are sought. Pupils’ views are sought using a questionnaire on bullying developed by Dan Olweus. This is an internationally recognised and widely used measuring tool. By using the Olweus questionnaire, we can compare the findings with previous studies and with the position in other countries.

The most recent research was published in October 2011. Overall, the most common form of bullying reported by 39% of pupils was being called mean and hurtful names or being made fun of or teased in a hurtful way. The Olweus questionnaire includes a question for year 9 pupils about being bullied with names, comments or rude gestures with a sexual meaning. Around 14% of pupils reported being bullied in this way. Clearly, bullying of this type includes homophobic bullying, and it is the sixth most common form of bullying. Bullying, for whatever reason and in whatever form, is unacceptable, and I am committed to working with schools vigorously to tackle it.

Dolores Kelly (Social Democratic and Labour Party, Upper Bann)

I thank the Minister for his answer. I notice that the data on which he relies for his answer are based on sample questionnaires that do not involve all the young people. Will he commit to having a much more robust data collection mechanism, and will he then outline what strategy he is putting in place to deal with homophobic bullying?

John O'Dowd (Sinn Féin, Upper Bann)

The data collection is based on sound principles. There are thousands of young people in our school system, and I am not sure how practical it would be to question all those children, or indeed, the several thousands of staff who work in our schools. Let us be clear, there is a duty on schools to tackle homophobic bullying, as there is on society. I believe that we have the practices and policies in place that can do that.

Bullying in schools comes in many different forms, and there is a legal duty on schools to have policies in place to tackle bullying. Those policies should be drawn up in consultation with parents, pupils and guardians, and they should be robust enough to deal with all forms of bullying, regardless of their nature, including homophobic bullying, which is completely wrong.

Phil Flanagan (Sinn Féin, Fermanagh and South Tyrone)

Go raibh maith agat, a LeasCheann Comhairle. What legal protections are in place to protect people from becoming victims of bullying, including homophobic bullying?

John O'Dowd (Sinn Féin, Upper Bann)

All grant-aided schools are required by law to have measures in place to prevent all forms of bullying. Schools, as I said in my answer to Mrs Kelly’s supplementary question, must consult with parents and pupils about these measures, after which it is a matter for the board of governors of a school to draw up a policy. The Department of Education also issues guidance to schools on these matters.

I have also visited a number of schools where the measures that have been put in place provide fine examples. For instance, school councils have been very successful in creating self-disciplinary policies, with agreement among all pupils and staff on how to regulate behaviour in the classroom and in the playground at school. There is a school project, which, I believe, is called Unite, which encourages unity between all staff and pupils on how to deal with disciplinary matters in school. It also tackles all forms of bullying. I was very impressed when I met the school council that was in charge of the discipline in the school, which helped to eradicate bullying, including homophobic bullying. There are many different measures. We need legislation, but we need the participation of young people and staff in those measures as well.

Anna Lo (Alliance, Belfast South)

A recent report by the Rainbow Project showed that 84% of pupils who were being bullied because they were perceived to be lesbian, gay or bisexual (LGB) had suicidal thoughts, and 35% of LGB-perceived pupils who were being bullied have attempted suicide. What action is the Minister taking to combat homophobia-related suicide in schools?

John O'Dowd (Sinn Féin, Upper Bann)

The measures I outlined to the Members who asked questions previously included those against homophobic bullying in schools. The attitudes in our schools are often a reflection of the attitudes in our broader society. There is a responsibility on communities and families to ensure that homophobic bullying is totally unacceptable. There is a responsibility to ensure that we do not use language or involve ourselves in actions that will encourage such homophobic bullying or, for that matter, any form of bullying.

I believe that the measures we have in place are robust. I constantly review all my policies. I engaged with the Rainbow Project on several occasions with regard to these matters, and will continue to do so. If there are other measures that we can take to help to eradicate bullying, we shall do so. However, we also have to eradicate the attitudes that promote and allow homophobic bullying to take place.

John Dallat (Social Democratic and Labour Party, East Londonderry)

I call Ms Michelle Gildernew for a question.

Michelle Gildernew (Sinn Féin, Fermanagh and South Tyrone)

My supplementary is on question —. Sorry. Go raibh maith agat. Gabh mo leithscéal, a LeasCheann Comhairle. Question 2, please.

Michelle Gildernew (Sinn Féin, Fermanagh and South Tyrone)

2. asked the Minister of Education for an update on his Department’s efforts to ensure adequate provision of preschool places. (AQO 2122/11-15)

John O'Dowd (Sinn Féin, Upper Bann)

Every effort is being made by my officials and the education and library boards to ensure adequate provision of preschool places across the North and to meet the Programme for Government commitment of ensuring that at least one year of preschool education is available to every family who wants it. Over 22,500 children have secured a preschool place for September 2012. Of the children whose parents applied at stage 2 of the process, only 24 remain unplaced. I expect that number to fall further in the coming weeks.

Although a number of parents did not apply at stage 2 of the process, places do remain in the system if they wish to reconsider. They may find that additional places have become available, which will allow them to consider other options. I cannot stress enough the importance of parents continuing to work with the education and library boards as every effort will continue to be made to find places for eligible children.

John Dallat (Social Democratic and Labour Party, East Londonderry)

I call Ms Gildernew for a supplementary.

Michelle Gildernew (Sinn Féin, Fermanagh and South Tyrone)

Go raibh míle maith agat, a LeasCheann Comhairle. Well, everybody knows now why they are getting rid of me. [Laughter.]

I thank the Minister for his answer and welcome his confirmation that the vast majority of children have been placed. Will he reiterate why priority is given to children from socially disadvantaged backgrounds?

John O'Dowd (Sinn Féin, Upper Bann)

I am sure that nobody believes that we are getting rid of you. I take this opportunity to thank Michelle and her colleagues Paul, Conor and Pat for all their assistance down through the years, and wish them all the best in their new venture, which is very important with regards to representation.

Why do we positively discriminate for children from socially disadvantaged backgrounds? It is because all the evidence points to the fact that children who come from socially disadvantaged backgrounds face the greatest challenges when it comes to education. If we as a society are serious about breaking the generational cycle of disadvantage within many communities, we have to start in early years. That is what all the research shows us is the best thing to do. It may be 10, 20 or 30 years before we see the full positive impacts of this policy, but I believe it is the right policy.

Michael Copeland (UUP, Belfast East)

I am sure the Minister will be aware from correspondence of the difficulty that is encountered by folk in getting their children placed in nursery schools. There appear to be patches or areas where that is more difficult. Is the Minister content that everything that could have been done to avoid that problem was done?

John O'Dowd (Sinn Féin, Upper Bann)

I am more content than I was six weeks, 12 weeks or three months ago. I believe we made significant progress over the latter period, but it also has to be remembered that 22,500 children have been placed in preschool and nursery settings, and that has to be welcomed. The education boards and my departmental officials have worked intensely over the past number of weeks to ensure that those children and parents who applied at stage 2 of the process have been placed. We are now down to 24. I will not be satisfied until we have those 24 children placed, and I am continuing to approve new preschool settings on a regular basis in areas where they are required.

We are not yet satisfied that we have this absolutely correct and we will continue to implement the workings of the review. I have recently signed off on paperwork to go to the Education Committee regarding the end of the July and August birthday criterion. I will continue to implement the outworkings of the review that I announced to the Assembly in January of this year. A lot of good work has been completed, and there is more work to be done.

Mervyn Storey (DUP, North Antrim)

Although the Minister has made much of the 24 places that are left to be allocated, what about the 400 who, in the second round, decided not to bother with the process and have now disappeared into the system? What steps will the Minister take to look at the issue in a way that means that working parents who deserve to have a place will get one? How will he deal with the 400 parents who made a decision that the process is so inadequate that they will give it a bye?

John O'Dowd (Sinn Féin, Upper Bann)

I am not sure whether the Member has had an opportunity to speak to all of those 400 parents and so can speak on their behalf on why the process is inadequate.

Mervyn Storey (DUP, North Antrim)

I do not need to.

John O'Dowd (Sinn Féin, Upper Bann)

He does not need to. In that case, he is a mind reader in addition to all the other talents that I know he has.

The fact of the matter is that 600 parents, minus 24, who applied to stage 2 have had their children placed. Parents did not enter the second stage for a variety of reasons. It might well be the case that parents were disappointed that they did not get their first choice, and I accept the Member’s point on that. We cannot set up a system where all parents will be able to get into their first preference. We have a proven and tested formula that works, and I encourage those parents who did not apply to stage 2 to go back to their education and library boards and seek information on whether there are settings available in their area that would suit them. I am continuing to approve additional settings. My officials are continuing to work with the board in the pre-school educational advisory groups to see where additional places are required, and that work will continue. I certainly cannot accept that the 400 parents withdrew themselves from the system because they found it to be unacceptable. There are a variety of reasons why parents did not come back to the system. My duty of care was to the parents of the 600 children who did come back into the system.

Conall McDevitt (Social Democratic and Labour Party, Belfast South)

I note the positive change that the Minister has made on July and August birthdays. Can he clarify to the House why he thinks that it is possible to perpetuate a policy that supports one section of the community while clearly discriminating against another section of the community? When will he realise and accept that the only fair and equitable way of addressing the needs of this group of young children is through the statutory right to a preschool or nursery place at age three?

John O'Dowd (Sinn Féin, Upper Bann)

The Member never ceases to amaze me. A member of the Social Democratic and Labour Party is criticising me for having in place positive discrimination that benefits children from socially disadvantaged backgrounds. Is it now the policy of the Social Democratic and Labour Party —

Conall McDevitt (Social Democratic and Labour Party, Belfast South)

[Interruption.]

John Dallat (Social Democratic and Labour Party, East Londonderry)

Order. Please let the Minister answer.

John O'Dowd (Sinn Féin, Upper Bann)

— that you will criticise policies that benefit children from socially deprived areas? All the evidence points to the fact that if you make early interventions in the lives of people from socially disadvantaged backgrounds, you not only give that individual a chance in life but you allow that individual to become a valuable member of society who can contribute to it. I will not apologise for the measure. In fact, we should be proud of the measure. As part of the review, when the full implications of the Welfare Reform Act 2012 become clear, we will widen the criteria to include those families from low-income backgrounds who are out working. That is the next measure in this. In this instance, the policy of positive discrimination is a good policy.

John Dallat (Social Democratic and Labour Party, East Londonderry)

I remind Members that it is not the convention in the House to interrupt a Minister when he is answering. The next time that it happens, I will simply move on.

Christopher Hazzard (Sinn Féin, South Down)

3. asked the Minister of Education for an update on the work that he is undertaking on an all-island basis in conjunction with his counterpart in the Dublin Government. (AQO 2123/11-15)

John O'Dowd (Sinn Féin, Upper Bann)

Through the North/South Ministerial Council (NSMC), I am working to progress a wide range of educational issues. Ministers agreed at the most recent North/South Ministerial Council, held on 1 February, to proceed with a joint survey to inform cross-border pupil movement and school planning. The survey is scheduled to be conducted in the autumn of 2012, and I hope that it can generate widespread participation. The future approach to service delivery at the Middletown Centre for Autism will be discussed at the NSMC meeting this Friday, 15 June. Other work includes the educational underachievement and literacy and numeracy working group, the inclusion and diversity service, the working group on teacher qualifications and the dissolving boundaries programme.

Christopher Hazzard (Sinn Féin, South Down)

Go raibh maith agat, a LeasCheann Comhairle. I thank the Minister for his comprehensive answer. Will he give an update on the proposals to offer the teachers’ Irish language requirement in higher education institutions here in the North?

John O'Dowd (Sinn Féin, Upper Bann)

Yes. We are continuing to work on that proposal. It is an important development in allowing teachers to work on either side of the border, given the differing qualifications required. We have set a mechanism that will ensure that trainee and qualified teachers in this jurisdiction can achieve a qualification to allow them to work in either jurisdiction.

Gregory Campbell (DUP, East Londonderry)

The Minister mentioned the NSMC. If he is in attendance at the next British-Irish Council meeting, will he ensure that his counterparts throughout the length and breadth of the rest of United Kingdom are aware of the excellent education system that we have in Northern Ireland and the fact that we intend to make it better for every child?

John O'Dowd (Sinn Féin, Upper Bann)

I have no difficulty in engaging with my colleagues in other jurisdictions. In fact, I have recently corresponded with Michael Gove, the Education Minister in England, and with the Education Ministers in Wales and Scotland. I am happy to report that the Education Ministers in Wales and Scotland have agreed to meet me to discuss recent announcements made by Minister Gove about A levels and GCSEs. I am happy to discuss with them the qualities and challenges in our education system, because the Member is perfectly correct: we have to make our education system excellent for everyone.

Patsy McGlone (Social Democratic and Labour Party, Mid Ulster)

Go raibh maith agat, a LeasCheann Comhairle, Gabhaim buíochas leis an Aire chomh maith as ucht a chuid freagraí go nuige. Could the Minister provide us with some detail on what discussions have taken place between departmental officials and the Central Applications Office on making third-level courses more accessible to students from the North?

John O'Dowd (Sinn Féin, Upper Bann)

That is more of a question for Minister Farry as it is about third-level education, and I am sure that he would be happy to respond to it.

Jim Allister (Traditional Unionist Voice, North Antrim)

It may be of no concern to the Minister but, from the perspective of the hard-pressed taxpayer, will he take any steps to ensure that the Republic of Ireland’s Government pay for the 400-plus pupils from the Republic who enjoy free education in Northern Ireland schools?

John O'Dowd (Sinn Féin, Upper Bann)

As a hard-pressed taxpayer, I can assure the Member that central to the delivery of all my policies is an assurance that the taxpayer gets value for money and that all taxpayers are treated equitably. We have an agreement in place with my counterpart in Dublin to ensure that the costs of pupils who travel in either direction are covered. I assure the Member that, as a result of the continuing work of the North/South Ministerial Council, it is recognised that co-operation across the border is a more effective and efficient way of running government than ignoring each other.

Danny Kinahan (UUP, South Antrim)

Does the Minister have the results of the survey on parental opinion on cross-border education that were promised a few months ago?

John O'Dowd (Sinn Féin, Upper Bann)

I will clarify that for the Member: the survey will hopefully be agreed at this week’s meeting of the North/South Ministerial Council in education format, and the actual survey will be conducted over the autumn. The results will not be available until January 2013.

Robin Swann (UUP, North Antrim)

4. asked the Minister of Education when he will introduce the Education and Skills Authority Bill. (AQO 2124/11-15)

John O'Dowd (Sinn Féin, Upper Bann)

The Bill is being finalised for approval by the Executive. I hope to introduce it shortly, with the aim that it will complete its Second Stage before the summer recess. That timescale is later than I had hoped, but it leaves time for careful scrutiny by the Education Committee in the autumn and for the Bill to become law before 1 April 2013. The Programme for Government commitment for the establishment of the Education and Skills Authority (ESA) remains on course.

Robin Swann (UUP, North Antrim)

Can the Minister detail what plans he has to retain regional bodies that will either represent or respect the regional needs of schools?

John O'Dowd (Sinn Féin, Upper Bann)

ESA will be the education body. However, the Member raises an important point. There will be local contact with ESA; it will be not a centralised service. I want to ensure that local connections between councils, schools and education facilities remain. I have not finalised any proposals for where offices — there will be offices — will be located, but that work will continue in my Department.

However, the clear message that I want to get out is that although it will be a single educational authority, ESA will be representative on the ground and available to schools, and it will be based in localities rather than in a central office in a particular area.

George Robinson (DUP, East Londonderry)

If approved, how will the Bill benefit the controlled sector?

John O'Dowd (Sinn Féin, Upper Bann)

The Bill, if approved, will benefit all sectors because, at its heart, the Bill is about running a more efficient and effective management system that is fit for the 21st century. The education and library boards have served their purpose, as have other bodies. We are ensuring that we have a single education authority that will help raise educational standards across all sectors. The Education and Skills Authority Bill will also introduce a controlled education sector support body, which, for the first time, will work directly with controlled schools and give them a voice in education.

Daithí McKay (Sinn Féin, North Antrim)

Go raibh maith agat, a LeasCheann Comhairle. I look forward the Bill coming before the Committee. How will the controlled, maintained, integrated and Irish-medium sectors and the wider community be represented on the ESA board?

John O'Dowd (Sinn Féin, Upper Bann)

The First Minister and the deputy First Minister have reached heads of agreement on, and the Bill will provide for how, the body will be made up. The transferors and trustees of maintained schools will retain their established legal right to membership and have four members each. The eight political members will be nominated under the d’Hondt mechanism, which will ensure local democratic accountability. Others will be chosen for their skills and competence to represent the community. I assure Members that I want to see a representative body at the head of education to ensure that all voices are heard for the benefit of education.

Seán Rogers (Social Democratic and Labour Party, South Down)

Thus far, how much has been spent on ESA?

John O'Dowd (Sinn Féin, Upper Bann)

I do not have the exact figures in front of me, but a significant period of planning has been put into ESA. It is regrettable that ESA has been delayed on several occasions. However, we must now focus on ensuring that we bring forward ESA, which is a Programme for Government commitment, and that we establish and have it in place to ensure an effective and efficient management system for the delivery of a public service.

Alex Maskey (Sinn Féin, Belfast South)

5. asked the Minister of Education how his Department’s anti-bullying policies compare with those in the Irish Republic and Britain. (AQO 2125/11-15)

John O'Dowd (Sinn Féin, Upper Bann)

The policy position here, in the South and in Britain is that bullying behaviour is unacceptable. Bullying behaviour, for any reason and in every form, has no place in schools. All schools have a role to play in teaching respect for diversity and should support pupils who have been subjected to bullying.

Although the underpinning policy is the same, the approach used across Britain, in the South and here does vary. All grant-aided schools here are required by law to include, in their discipline policy, measures to prevent all forms of bullying among pupils. It is a matter for schools to determine, in consultation with pupils and parents, the details of their policy. The publication ‘Pastoral Care in Schools: Promoting Positive Behaviour’ offers detailed guidance on tackling bullying. This guidance is intended to stimulate discussion in a school around the issue of bullying. It is intended to encourage collective ownership of the issue and the actions to be taken to counter it.

The position is similar in other jurisdictions in the South and in Britain. In Wales, schools must, by law, have a specific policy on bullying. Schools in England and in the South must have a behaviour policy that includes the prevention of bullying. In Scotland, schools are not legally obliged to have an anti-bullying policy, but it is recommended as good practice.

Alex Maskey (Sinn Féin, Belfast South)

Go raibh maith agat, a LeasCheann Comhairle. I thank the Minister for that response. Will he outline any specific assistance that the Department here will give schools to help them to tackle and eradicate bullying?

John O'Dowd (Sinn Féin, Upper Bann)

As I said in relation to a previous matter, advice and guidance is available from education and library boards and from the Anti-Bullying Forum, the website of which I revisited just before coming to Question Time. That website is a useful tool to assist parents, pupils, elected representatives and schools’ boards of governors in tackling bullying. Each board has a designated officer who assists in the development of whole-school policies and who supports individual pupils who have been victims of bullying. In-service teacher training is provided by each of the five education and library boards. Nominated teachers are provided with enhanced training to recognise and support young people in crisis, including those who have been subjected to bullying.

As I mentioned in response to a previous question, the examples I have seen of school councils and pupils taking ownership of the issue and dealing with it have been very positive. I think that it strengthens and builds the character of pupils as individuals and collectively when they are entrusted and charged with dealing with such issues. I also think that it helps to eradicate bullying much more quickly than any legislative process.

John Dallat (Social Democratic and Labour Party, East Londonderry)

Order. Members, there is too much talking in class. I need to hear what the Minister and other Members say. Otherwise, Members may complain.

Tom Elliott (UUP, Fermanagh and South Tyrone)

Cyberbullying and social network bullying are more recent concepts in schools. Has any new guidance been given by the Department to schools, education and library boards or administrative bodies on how to deal more effectively with those forms of bullying?

John O'Dowd (Sinn Féin, Upper Bann)

There has. If my memory serves me correctly, last year’s anti-bullying week focused on cyberbullying and the use of new technologies in bullying. Advice was given to parents, pupils and teachers on how to assist in the eradication of such matters.

Regardless of the format of bullying or whether it takes place in the playground, the classroom or outside school, it is wrong. It is based on power and someone wishing to impose their power on someone else, and it should be resisted and eradicated at all times. As elected representatives, we have a role to play in ensuring that the message goes out that bullying is wrong, and parents, families and communities have a similar role to play.

On the issue of cyberbullying and how parents can reassure themselves that their children are not subject to bullying through electronic equipment, I would again point Members to the Anti-Bullying Forum’s website. It has a specific web page that will give great assistance to everyone and help to ensure that we eradicate cyberbullying.

Joe Byrne (Social Democratic and Labour Party, West Tyrone)

I welcome what the Minister has said about the development of an anti-bullying strategy. Does the Minister accept that cyberbullying causes great havoc and pain to students and teachers? Will the Minister detail how many teachers have been on sick leave as a result of cyberbullying?

John O'Dowd (Sinn Féin, Upper Bann)

I do not have those figures in front of me. The Member touched on the important point that cyberbullying can not only affect the work and lives of pupils but can be used to abuse teachers. There have been a number of examples in the local and broader media of teachers being subjected to such abuse, and there is a responsibility on those who provide internet sites to ensure that they are managed properly and are used for the proper purposes. The other effect of cyberbullying is that it can deter young people in particular from getting the full benefits of ICT. I reiterate the simple message that any form of bullying is wrong.

Simon Hamilton (DUP, Strangford)

6. asked the Minister of Education for an update on the implementation of the early years (0-6) strategy. (AQO 2126/11-15)

John O'Dowd (Sinn Féin, Upper Bann)

The analysis of the consultation process is complete. I need to decide on the best approach to revisiting the draft early years (0-6) strategy in light of that analysis, taking into consideration the lapse in time from the original development of the strategy and the current context. I am committed to working with ministerial colleagues to enhance the delivery of a range of early years and early intervention services. Those must be balanced against the pressing need to deliver much-needed and sustainable improvements in early education.

A number of issues need to be addressed to strengthen the position of early education and its contribution to improved outcomes. Those require urgent attention. I am still reflecting on how I want to reshape the strategy, and I will publish the outcome of the consultation and set out the way forward when I am in a position to do so.

Simon Hamilton (DUP, Strangford)

I thank the Minister for his response. In response to an earlier question, the Minister highlighted the importance of preschool education. Is the Minister aware of the concerns expressed by many that the draft strategy is more of a three-to-six-years strategy and of the growing body of opinion that more of an emphasis on the years nought to three is important?

John O'Dowd (Sinn Féin, Upper Bann)

Those concerns were clearly raised as part of the response to the draft early years (0-6) strategy. I agree with the concerns in one sense. All the time, we are improving our knowledge about years nought to three and the importance of intervention at that stage. I have had some useful discussions with the Health Minister about that matter, and I believe that he and I are on the same page about how both Departments can assist each other in improving the lives of our young people, their parents and, therefore, the community.

The 0-6 strategy was first developed in 2006. It went out to consultation, and there were several thousand respondents. As the consultation was ongoing, none of the Departments in the Executive stood still. We all moved forward with the knowledge that we had on how we would improve young people’s lives and make positive interventions at as early a stage as possible. I want to take all those measures into account before I move on. I have asked my officials to engage with officials in the Health Department with regard to how we can best move forward together on early years.

John Dallat (Social Democratic and Labour Party, East Londonderry)

That concludes Question Time.

Committee Business

Judith Cochrane (Alliance, Belfast East)

I welcome the opportunity to speak on the report and will make a few brief comments on its content.

Let me make it clear at the outset that, in considering our local economy, we must avoid viewing it through the prism of a post-Troubles haze, seeing it simply as a peripheral issue. It is not simply an optional add-on to the peace process. A fully functional economy complements and is complemented by a fully functioning society. If we seriously wish to tackle key issues such as division, poverty and unemployment, we must strive to develop an economy that generates jobs and prosperity.

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

One of the key challenges outlined in the report is the danger of a top-heavy focus on technical research and development in favour of an emphasis on commercial endeavours. The universities are perhaps warranted in their view that they could be better utilised, yet there is a real risk that the discussion will turn solely to product innovation, to the detriment of other areas.

Also in the report is a challenge to the risk-averse nature of government, particularly the fear of the scrutiny that could subsequently arise from ventures judged not to have been successful. One area that has suffered as a result of that inherent risk aversion is the green economy, embodied by the green new deal. It appears that fear of the unknown is a key factor in how the green new deal has been received. It now seems impossible for us to promote innovation and research and development when we fear the repercussions from those waiting in the wings. Our bureaucracy remains focused on process and not on outcomes.

A major shortcoming in the report is the absence of focus on exports. If we genuinely wish to develop an innovative and competitive economy, fundamentally, there needs to be an enhanced emphasis on researching and developing goods and services that people outside Northern Ireland are willing to purchase. In many ways, such a solution would begin to address some of the questions I raised previously about the areas in which local research and development should be focused; ideally, in exportable sectors.

The overarching focus and the sentiments underlying the report are worthy of merit, and it is on those principles that I support the motion. As we move forward, we must remain vigilant about the significance of the economy in all the decisions we make, as well as giving the necessary consideration to proposed reforms and placing a renewed and concerted focus on defining and developing our exportable sectors.

Gordon Dunne (DUP, North Down)

I welcome the opportunity to speak on the Committee for Enterprise, Trade and Investment’s important report on developing the economy through innovation, research and development. I commend the work carried out by all those involved in this lengthy process, including the Committee and all who contributed from outside: industry, universities, colleges and other organisations.

The Committee endeavoured to find out why the uptake of European funding through framework programme 7 was so very low and why business expenditure on R&D in Northern Ireland was heavily focused on a small number of companies, with just 10 companies accounting for 57% of business in R&D in 2009. During the Committee’s evidence sessions, it was clear that a lot of good work has been done by universities, colleges and local councils, working alongside large businesses and SMEs, through programmes and in collaboration in order to develop access to funding through European framework programme 7. A lot of good work is ongoing, but there is a clear risk of duplication of providers. There is a definite need for more consistency in research and development funding.

Unfortunately, organisations face many barriers. There is a lack of awareness of the opportunities that are available, and SMEs, especially, are not aware of their eligibility to avail themselves of them. Some do not recognise that the work that they do is part of R&D. Many companies, including some larger companies that we visited, do not access European funding as they do not have the resources, such as personnel, time and finances, available to dedicate to R&D. Others do not have the knowledge and skills available to go through the application process for R&D projects. There is also clear reluctance among some businesses to get involved in R&D because of the risk of committing resources to where there is no certainty of success. Today, many companies cannot afford to take such risks. Intellectual property risks were also recognised as a barrier. Many companies see collaboration with other firms as a risk: often, they could end up as competitors in the same marketplace.

Having to work through the unnecessary and repetitive bureaucracy involved in the programmes and related administration was often flagged up as a concern. The need for collaboration with partners doing similar work throughout Europe was a major stumbling block, although some SMEs had assistance, which was fully recognised, from Invest NI and Queen’s University, often through partnerships in the Republic of Ireland. One company that we heard evidence from spoke of its work on framework programme 7 and told how the lead-in time for the development of the project was up to four years, which was far too long for a small business trying to compete and survive in these tough economic times. The cost to that company of completing its proposals was £35,000, which is a huge outlay for an SME, especially as it could take at least four years before it saw any real return. The risk is too high for such small businesses.

DETI recognises that R&D will play an important role in attracting FDI to Northern Ireland. More needs to be done to co-ordinate all the key players who are in place to support businesses. We need a more holistic approach and to establish a high-level group to co-ordinate, gather knowledge, benchmark and get strategic direction for all R&D activity. A clear and consistent approach must be put in place across government, business and academia in Northern Ireland. The new programme of European support, Horizon 2020, must be much more responsive to the needs of businesses in Northern Ireland. A smarter system must be put in place to allow businesses to maximise funding opportunities through R&D. I support the motion.

Phil Flanagan (Sinn Féin, Fermanagh and South Tyrone)

Go raibh maith agat, a Phríomh-LeasCheann Comhairle. I thank the Committee staff, the Chair and the rapporteur who carried out many hours of good work on the inquiry. The debate can tend to be arduous and boring because nobody speaks against the motion, so I will not speak for too long.

Research and development is an interesting and important area of work for our economy. If we can manage it correctly, it will be a massive area of growth, particularly in two of our most important sectors: energy and agrifood. Right across the European Union, there is huge potential for R&D and a huge proposed change in how it will be managed and funded. So we need a lot more flexibility from government here, from local government and at European level, as well as our private sector. It should be a two-way process in which companies are enabled to be more flexible, and they are willing to be more flexible and to adapt much more quickly to the changes in the pipeline.

Many Members who spoke previously focused on the challenges that SMEs face. SMEs find it tough to benefit from and set aside the resources to invest in R&D. The figures that we received as part of our initial research showed that the vast majority of R&D expenditure was down to a very small number of very large companies. The Executive and the Assembly should try to change that. I am glad that the Minister is here, and I encourage her to accept the report’s recommendations. If she does, her Department and the private sector will have the support of the Committee for Enterprise, Trade and Investment and the House as a whole.

Mike Nesbitt (UUP, Strangford)

I welcome the report and the motion. I praise the Chairman and his Committee, in particular Robin Newton, who acted as rapporteur during the process.

Every now and then, we, as mankind, as it were, invent new ways of conducting business. Some­times it is giving up bartering and inventing money, shops, town centres, out-of-town shopping centres and the internet as a vehicle for conducting commerce. So it is timely that we debate the report.

I open my remarks with a little context for change, innovation and the need for research and development. It was around 100 years ago that we saw the emergence of what we would now consider to be the first set of multinational companies: the likes of Procter and Gamble and Shell, to name two familiar names. A few years ago, a British economic historian by the name of Leslie Hannah compiled a list of the global top 100 companies of 1912, a century ago. By 1995, which is effectively within a lifetime, 48% of those companies — nearly half — had disappeared. Of the 100, 29 had gone bankrupt, and only 19 were still in the global top 100. There was no Microsoft, no Apple. In 1995, W F Woolworth was king of the high street. Not much sign of Woolies today. On the theme of the commercial high street, the Independent Retail Trade Association says that we are losing 1,000 small shops a year in Northern Ireland as we again change the way that we do business. The bottom line is that most things eventually fail. We need to understand that fact and ensure that we constantly change and evolve the dynamic through innovation and research and development.

Invention is, in some areas, in our DNA; for example, engineering. I understand that one Bombardier aircraft takes off somewhere on planet earth every three seconds. Nobody makes aeroplane wings like Bombardier in Belfast: we are a world leader in that regard and are constantly striving to innovate. In agrifood, perhaps the most impressive fact is that we now process and export the potato back to the United States, from whence it came a few centuries ago. We have, then, the exemplars and the mentors. We have access to finance through the European framework programme 7 and the forthcoming Horizon 2020. We have the capacity of our universities. In organisations such as Invest NI and InterTradeIreland, we have the matchmakers who can go and seek that European finance. The incentives, the support and the confidence are, I believe, all there.

I finish with a personal experience, although it is backed by similar stories from many others I have spoken to who share a sense of frustration at how we sometimes treat intellectual property. I am interested to hear the Minister’s thoughts on this narrative. Some years ago, I believed that I had an innovative service in the general area of communications. This was at the time of the US/NI investment conference, which was held, very successfully, in April 2008. You will remember that that conference attracted many high-powered US business executives but, inevitably, saw many others left at home, even though they desired to be there. I had an idea that I felt could max out the opportunity of those three days. I took my idea to Invest Northern Ireland, not for a development grant but as a service that I believed would have been of benefit to its operation, particularly beginning with the investment conference. I took a business proposition, ready to negotiate. The response began very positively: Invest Northern Ireland liked the idea. However, when we got down to the nitty-gritty, I was told that Invest NI actually contracted out all its communications to a third party and felt that it would perhaps need to give the idea to that third party to exercise, which it realised was not really an option. The only other option was to put it out to tender. Of course, to draw up a tender document would have forced Invest NI to disclose my intellectual property. So, in fact, we went nowhere.

I hope that we can use the publication of the report to spur us on to think imaginatively about how to max out the potential for innovation to be the growth engine for the private sector and, perhaps —

Francie Molloy (Sinn Féin, Mid Ulster)

Bring your remarks to a close.

Mike Nesbitt (UUP, Strangford)

— a catalyst for a new spirit of entrepreneurship in the public sector.

Robin Newton (DUP, Belfast East)

In supporting the motion, I, first, pay tribute to the work that has been done in this area by the Minister, her team and Invest Northern Ireland. The fact that it has been realised and that work has been going on in this important area gave the Committee some confidence to try to take it a stage further. I also pay tribute to Jim McManus and his team for putting the report together. It is an extremely professional report that was done succinctly and in a manner that encapsulated all the points that the research brought to the Committee. I also want to say a special thank you to Fergal Campbell, a young man who is with us as a graduate placement. He did the hard slog that was necessary in putting the report together.

I want to say only two things about the report; others have spoken widely about it. The report and the Committee recognise the importance of the manufacturing sector to the Northern Ireland economy. The Programme for Government recognises the need for the manufacturing sector to be expanded. However, we can expand only from the base that we have, recognising that low-cost products are no longer going to be manufactured in this part of the world and will be manufactured in an area that has a low-cost manufacturing base. In recognising that, there is only one way to go, and that is for the manufacturing base to look at high-technology products, which are high value-added products. High value-added and high-tech products require research and development and innovation.

I have already recognised that good work has been done, so how do we go or where do we go? The report has suggested to the Minister a pathway that can be followed and recognised as sensible. I want to speak about one area of the report. Recommendation 4 is that a mechanism should be put in place and resources allocated to support and improve the capacity and capability of organisations at all levels to participate in innovation and R&D. That encapsulates the ethos and culture of the report. In recognising that, it says two things to government and to industry. It says that we need to develop a culture of research and development. Companies, even SMEs, think about the manufacturing strategy, the marketing strategy or the finance strategy but ignore a strategy for research and development or innovation. In many cases, such companies believe that that is not applicable to them, when, in fact, their ethos and culture should be just as strong in their thinking on innovation and research as it is in their finance and marketing. The report highlights the need to take a strategic approach in Northern Ireland and says that a culture of R&D should be embedded in our companies, regardless of their size. There are ways of doing that.

The report highlights the need to make greater use of our universities. I recognise the capabilities and the good work of the University of Ulster and Queen’s University, but there is more to be done, and I think both universities recognise that. There is also an opportunity for us to use the higher education colleges, as they have a contribution to make.

Francie Molloy (Sinn Féin, Mid Ulster)

Bring your remarks to a close.

Robin Newton (DUP, Belfast East)

Reference was made to the work of the Ulster Unionist MEP. Diane Dodds did a good piece of work last week in announcing at a business breakfast a directory of support within FP7 and Wider Horizons, and I commend that to complement this work.

Steven Agnew (Green, North Down)

Like others, I support the motion and thank the Committee staff, the Chair and our rapporteur for their work on the report. Throughout the inquiry, there was consensus that R&D is of the utmost importance to the development of the Northern Ireland economy. The difficulties for companies engaging in R&D were continually highlighted, particularly by SMEs. Difficulties in securing funding and the high risk nature of R&D were highlighted. The particularly bureaucratic nature of the EU framework programme 7 was probably the most common cause for complaint.

Last week, we heard encouraging words from EU Commissioner for research and development, Máire Geoghegan-Quinn, when she suggested that the processes for Horizon 2020 would be streamlined. We cannot be complacent, as there will be little point in complaining that the structures are inefficient and bureaucratic after they have been set up. We must be in there at the outset working to ensure that Horizon 2020 is designed in a way that meets the needs of our SMEs and addresses the challenges that have been highlighted in the report.

There is also work that we can do locally to promote that culture of R&D, and Robin Newton has just referred to it. Among the report’s key recommendations is the need for a high-level steering group on research and development and the need for a single unit to integrate and co-ordinate R&D.

Another key recommendation, which has been referred to a number of times by various businesses, is the need for a quicker turnover of grant funding and the target for 30-day grant funding. By their nature, government processes can be slow and cautious, whereas the private sector is fast paced and must be risk-taking. We need to ensure that, in ensuring the best use of public funds, we do not overscrutinise our processes and negate the benefits that public spending seeks to achieve.

As I said, I support the motion and the report, but there was one area where I differed from the rest of the Committee and from some of the comments of the report, and that was in the purported link between the promotion of R&D and a low corporation tax rate. Countries that consistently lead on innovation have not followed that approach. In countries such as Finland, Sweden and Denmark, the public sector has led the way, and each of those countries spends around 1% of its GDP on R&D. If you compare that to Northern Ireland, you will see our combined public and private sector spend on R&D equates to around 0·7% of GDP. It is worth noting that the EU target is 3%. Finland, Denmark and Sweden are all consistently high achievers on innovation. They all have corporation tax levels in and around the mid-20s. They have not sought the low tax approach but have been judged to produce the best results. We are being asked to spend like Sweden but cut taxes like Ireland. In an ideal world, that would be a great approach, but, in the reality of our straitened financial times, that is not a viable way forward. Professor Steve Smith from Exeter University states:

“All the international and UK evidence points to one inescapable conclusion: in R&D, it is governmental spending that leverages out private sector spending and is a magnet for private investment and, for inward investment.”

The Enterprise, Trade and Investment Committee recently visited the Northern Ireland Advanced Composites and Engineering Centre. One member, the owner of a local company, stated that, if we did not start to produce more PhD students in engineering, his company would have to go elsewhere. That highlights the seriousness and the nature of the challenge we face. We must invest in human capital if we are to achieve success and innovation, and we cannot do that if we drastically cut public spending due to a reduction in corporation tax.

Patsy McGlone (Social Democratic and Labour Party, Mid Ulster)

Go raibh maith agat, a Phríomh-LeasCheann Comhairle. The area of innovation, research and development will become an increasingly important driver in our local economy in the years ahead; that is widely accepted. At present, it is widely considered to be the case that we do not perform to our potential in the innovation, research and development sector. Last week, colleagues and I were particularly glad to welcome EU Commissioner Máire Geoghegan-Quinn, who sat with and listened to us. Mrs Overend mentioned that as well. Some of her comments during the meeting were refreshing to hear. More on that later.

It is clear from the work of the ETI Committee that there is support for companies wishing to invest in innovation, research and development through a number of programmes and sources of funding. Companies that are already engaging with such support mechanisms value them and recognise the benefits they provide. It is also clear that there are problems. Although there has been a recent increase in R&D expenditure, it is still comparatively low. Also, that expenditure is heavily focused on a small number of companies, with just 10 companies accounting for around 57% of business R&D investment in 2009.

The bureaucracy associated with the administrative process was highlighted as an area of concern. It was particularly refreshing to hear Commissioner Máire Geoghegan-Quinn, because she grasped the detail and understood the complexities and the difficulties that people face when trying to cut through red tape. You were there, Mr Principal Deputy Speaker. Indeed, the illustrative example she gave of her staff presenting the detail and complexities to the higher levels of the European Union was refreshing to hear. We hope that progress will be made on the back of that.

The current economic climate is an additional restricting factor for companies that are weary of the perceived risks of becoming involved in innovation and R&D programmes. There is a lack of understanding and experience of managing that risk. There is also a lack of awareness of the opportunities and support available for innovation and R&D. That is a particular problem for small and medium-sized enterprises. I think that it is widely accepted that we expect a lot of the growth to come from those small and medium-sized enterprises, many of which are based and grounded in local communities. That is where the stability of business is: businesses rooted in local communities. Indeed, the Minister has been out and about visiting local firms, and I have criss-crossed with her on a number of occasions. Those people have a grasp of the local economy, and they need support, particularly in research and development.

There is also a shortage of available venture capital. However, we should note that there are good programmes for businesses and academia investing in innovation and R&D, and the participants are largely supportive of those programmes. They include international R&D programmes and EU programmes such as framework programme 7. There are UK-wide programmes, ones specific to Northern Ireland for which Invest NI has responsibility, and all-Ireland programmes through InterTradeIreland. Some local councils have also put in place programmes. Universities and colleges are working well with businesses across many areas. However, many respondents made a repeated call for a more integrated and better co-ordinated and planned holistic approach. In particular, they called for an access point for information about what programmes and resources are available. That seemed to be a common theme, especially among small and medium-sized enterprises, the local firms that are trying their best to maintain their business at the current level but could do with a bit more specialist advice about accessing the funding and resources they require to do it a bit better and to expand as a result.

There is a disconnect between and within the various sectors. That is where a high-level steering group comprising government, business and academia would provide a valuable role in providing advice on policy and overseeing the integration and co-ordination of all R&D activity.

We must be careful not to undermine the existing support programmes as we develop our approach. There must be continuing consultation with business and academia to ensure that everyone is fully convinced that we are taking the correct path. It is vital that we get this right. We need a clear vision of how we intend to develop and support innovation and R&D. The Committee’s report is a good start. Hopefully, the Minister and the Executive will now take it forward. Go raibh maith agat.

Arlene Foster (DUP, Fermanagh and South Tyrone)

I welcome the publication of the report by the Committee for Enterprise, Trade and Investment and join the Chair and others in thanking all of the staff involved in its preparation. I want to echo the Chair’s words of thanks to the Committee rapporteur, Robin Newton, who was very enthusiastic. I remember being delighted when he told me that he had been appointed rapporteur. Then, unfortunately, ill health intervened. I am sure that the whole House is delighted that Robin is back with us and on the Committee again.

I do not intend to respond in detail to all the specifics in the report. I will, of course, give it my detailed consideration and respond more fully to the Committee request on its recommendations in the near future. However, on a general note, it is reassuring to see the clear synergies between the Committee’s recommendations and what the Executive are doing now and plan to do in innovation and research and development. There is clear cross-party agreement on the important role that innovation and R&D must play in rebuilding and rebalancing our economy. That is reflected in the economic strategy that we launched just three months ago.

The underpinning theme of the strategy is the need to stimulate innovation, R&D and creativity. Innovation is not an economic priority because it is a nice thing to do; it is the key driver of productivity and economic growth. In the economic strategy, we set out some very clear actions and what we propose to do to support Northern Ireland companies to invest further in innovation and research and development. Although research and development is, of course, essential to growing the economy, we must recognise the importance of wider aspects of innovation in driving productivity and economic growth.

Mr Nesbitt mentioned the retail sector, which does not automatically come to mind as one that would invest in research and development. Frankly, however, one of the most innovative schemes that I have come across recently is a Bangor retail company’s bricks-and-clicks scheme. The company encourages people to visit its shop through its presence on the internet. It uses new technology as a way of drawing people into its retail business.

Research undertaken by NESTA reinforces the importance of innovation as being responsible for 63% of growth in productivity. Although we tend to concentrate on research and development, innovation is also key in moving our economy forward. It is also worth noting that investments in research and development made up just under 20% of innovation activities. I want more companies to invest in research and development. I want even more companies to innovate, whether through training, design or, as in the bricks-and-clicks example, the adoption of new technologies and improved processes. Such innovation is critical if we are to improve our overall levels of productivity, particularly in areas such as retail, tourism and services.

The Committee rightly highlighted that the annual expenditure on research and development in Northern Ireland has not been as high as it should have been and that the level of innovation activity in our firms has been very low. I accept that. However, it is important to point out that we are beginning to make progress. Mrs Overend was absolutely right to point out that business expenditure on research and development is very low. However, another statistic shows that it has improved by 95% over the past five years. As is always the case, you pick your statistic. It is important that we reflect that there is much more to do, but progress is being made.

Time prevents me from addressing all the recommendations, but I want to comment on a few of the most pertinent. The first is the Committee’s recommendation that there should be a clear vision for innovation and research and development in Northern Ireland. I welcome this and can confirm that we have put the first stage of that in place through the economic strategy’s prioritisation of innovation, creativity and R&D as its key underpinning theme. As Members will be aware, the economic strategy will be supplemented by an innovation strategy and accompanying action plan, which will be published later this year. The Committee’s report is, therefore, very timely in informing the development of that draft strategy, and I will welcome further engagement with the Committee as the innovation strategy is developed over the coming months.

An innovation strategy and vision without ownership across stakeholders and leadership to drive implementation would accomplish very little, it has to be said. Therefore, I welcome the Committee’s recommendation for the establishment of a high-level steering group, something that was mentioned by a number of Members, which will comprise representatives of business, academia and government to oversee and co-ordinate innovation and R&D policy.

In the economic strategy, we undertook to examine the need for the establishment of an innovation council to ensure that we had an operational example of the classic innovation triple helix at the highest level, with the Executive, academia and business working together to fully encourage greater innovation across the Northern Ireland economy. We have drawn heavily on best practice from other countries such as Finland, and the scope and remit for an innovation council will be developed further as part of the innovation strategy. A key strand of the work of the innovation council will be to ensure that there is a genuine culture of innovation and research and development across government, business and academia in Northern Ireland, and to help us to forge partnerships outside our region.

The Committee’s recognition of the importance of collaboration between stakeholders here in Northern Ireland and further afield is, therefore, very welcome. In working to encourage partnerships across borders, I am pleased to see that the Committee has placed particular emphasis on the need to increase drawdown of R&D funding under programmes such as FP7. I wholeheartedly agree with this. That is why, over the past 18 months, my Department has taken the lead in strengthening support mechanisms for firms and research organisations to participate in the framework programme and, perhaps just as importantly, to ensure that we in Northern Ireland are better placed to influence decisions on the development of Horizon 2020. As part of this, the Department will shortly appoint a Horizon 2020 manager whose task will be to ensure better co-ordination across the public and private sectors to help Northern Ireland capture a greater share of the £80 billion-plus that will be available through that scheme.

As part of the ongoing efforts to encourage a greater share of the European Union R&D funding, I was delighted last week to have the opportunity again to welcome Commissioner Máire Geoghegan-Quinn to open a major conference aimed at helping firms and researchers to apply for European Union support, and to attend the Executive’s economic subcommittee. I know that she also met colleagues in the Northern Ireland Assembly and Business Trust.

We have engaged with Máire Geoghegan-Quinn on a number of occasions, at the North/South Ministerial Council and here in Belfast. The very clear message was that she was listening to all the information that she had been given in relation to SMEs and the fact that they found it so incredibly difficult to get through the bureaucracy of European Union funding. Her key messages were about communication and simplification; she wants to see a more simplified process used because she has seen for herself the difficulties that companies have encountered. She also feels, and this point was raised by the Chair of the Committee today, that we need to communicate in a much more effective way to small companies that they may be able to be assisted in what they do through a European Union grant.

One key issue that she mentioned, which, again, has been mentioned by many Members today, was the balance of risk. She reflected that there is tension between, on the one hand, the Public Accounts Committee in relation to the accountability of how people use funding, whether that is here at a regional level or at European Union level with the Court of Auditors, and, on the other hand, allowing people to take risks to try to find the next big thing.

One point about research and development is that it is not always successful. There will be failures when one carries out research and development, so the same rules should not apply as apply to other funding streams. I discussed that with the Committee on one of my first visits to it back in 2008, but we in this House still need to get to grips with that point about funding for R&D.

On the issue of the bureaucracy surrounding European Union funding — and I know it was acknowledged by some Members — the innovation voucher that is used by Invest Northern Ireland is a hugely successful mechanism because the bureaucracy associated with FP7 and the other European funding streams is not associated with it. Indeed, to take up Mr Newton’s point, it can be used for further and higher education colleges as well as universities. So, it is a very important part of what we are trying to do to encourage more people to get involved in innovation.

I am determined to see more Northern Ireland firms, researchers and government play an even greater part in moving innovation forward. I am very pleased that the Technology Strategy Board’s chief executive, Iain Gray, was with us recently. He had a very productive meeting with the Committee Chair. Through the Technology Strategy Board, we want to build up what we are doing on knowledge transfer partnerships and the small business research initiative, both of which have been highlighted in the Committee report. The knowledge transfer partnership has been a genuine success story, with Northern Ireland research institutions and companies helping us to be the top performing region in the UK in that excellent programme. That is something that we should celebrate.

As the Committee highlighted, our companies have also been highly successful in competing in the small business research initiative. Northern Ireland firms make up three per cent of applicants to that innovative procurement scheme but have won 11% of the contracts and 12% of the money drawn down, which is an excellent performance.

The challenge that the Committee has highlighted is to ensure that we, as an Executive, also play our role as the biggest procurer of goods and services in Northern Ireland. I am pleased to report that we have already made progress in that: in 2010, we were the first devolved Administration to run an SBRI competition for tourism apps. However, we recognise that we must do more. DETI and the Central Procurement Directorate have been working closely on that topic, and a policy paper on innovative procurement has been endorsed by the procurement board. I can also confirm that innovative procurement, including SBRI, will feature strongly in the forthcoming innovation strategy.

I have covered most of the points raised by Members. Clearly, bureaucracy comes up time and time again, and Members are rightly saying that they want to see outputs measured as opposed to the processes that people have to go through. I mentioned growing our innovation culture in Northern Ireland, and Members all have a role to play on that issue in their own constituencies.

In closing, once more I thank the Committee and the Members who have contributed to this debate. Building our innovation and research capacity as a region is a long-term project. I accept that. We have made good progress to date, but I am confident that the Committee’s report has made a valuable contribution to the agenda, and I look forward to working with the Committee over the coming months as we develop the new innovation strategy.

Daithí McKay (Sinn Féin, North Antrim)

Go raibh maith agat, a Phríomh-LeasCheann Comhairle. As Deputy Chairperson of the Committee for Enterprise, Trade and Investment, I restate the Committee’s appreciation to everyone who contributed to the inquiry. The Committee is grateful to everyone who provided written evidence and to those who appeared before the Committee to give oral evidence. That provided the Committee with a very valuable insight into innovation, research and development, and into the difficulties faced by universities, FE colleges, research institutions and in particular businesses that are involved in, or are for the first time seriously considering being involved in, innovation and research and development.

In his opening remarks, the Chairperson, Alban Maginness, highlighted the need for a co-ordinated, integrated and long-term approach to innovation and R&D. From the evidence considered by the Committee, it is clear that such an approach would be very much supported by universities and FE colleges, research institutions, businesses of all sizes and the government Departments.

To make the most of existing and future opportunities for R&D, we must have a long-term vision. That must include not only universities, large businesses and government, but small businesses, microbusinesses, local councils and organisations such as the Federation of Small Businesses and trade bodies.

Stephen Moutray, Sandra Overend and Patsy McGlone all mentioned the low uptake of R&D among small businesses and the fact that only 10 companies account for the majority of R&D spend. Steven Agnew mentioned the need to increase the number of PhD students, which must be part of that same vision.

Stephen Moutray also mentioned the disconnect between government, business and academia; he commented on the need to include all three sectors, at all levels, in developing the structures, systems and processes for R&D. The Committee believes that that is an important first step in designing how we grow the research base in future. The vision must be one that says that any business, no matter how large or small, will be given opportunities and support to develop its good ideas into worthwhile products and services.

At present, many businesses regard R&D as an add-on. It also comes down to the issue of culture, which was mentioned by Robin Newton. He said that we have to recognise the need to develop high-tech, high-value products but that, first, we need to recognise that there are only particular markets in which we can compete and to adapt to those circumstances. R&D is seen as something that would be good to do if we had the time and resources. That attitude in the business community needs to change.

Stephen Moutray mentioned the benefits of putting in place a high-level steering group, which is one of the key recommendations in the report. Mike Nesbitt commented on the need for businesses to change constantly through research and development in order to survive. Robin Newton, the rapporteur, spoke of the need for companies to think of strategies for R&D in the same way as they consider strategies for day-to-day activities.

The Department, the Executive, the universities and the business representative bodies all have responsibilities to come together to challenge and change attitudes to R&D, to share knowledge and information, and to provide practical support to all businesses when and where they need it. Increased support must be available to small businesses in particular to get them into the way of thinking that R&D is something that they can and must do.

The Committee has recommended new structures for R&D in the form of a steering group and a single unit to integrate and co-ordinate innovation and R&D activity. Sandra Overend considered the need for a more integrated and co-ordinated approach when she commented on the need to promote opportunities to all businesses. Steven Agnew highlighted the need to put in place appropriate structures to support research and development. Patsy McGlone also called for a more integrated and co-ordinated approach.

There seems to be quite a bit of confusion about the current structures for supporting R&D; many businesses simply do not know what support is available or what the nature of that support would be. Some respondents to the inquiry suggested that an innovation centre is required to act as a single point of contact for all R&D support. It was suggested that it should sit in Invest NI and be sited in the science park. The Committee has chosen not to make rigid recommendations about where the structures should be; it will be up to those with responsibility for developing the structures to agree the best place to base them.

The Committee found a surprising lack of awareness about the opportunities for R&D among businesses. Even when businesses know about programmes, they may not know how they can apply or whether they are eligible in the first place. Stephen Moutray mentioned the pressure and constraints that businesses, especially small companies, are under. Sandra Overend and Gordon Dunne also commented on the need for businesses to know what programmes are available to them and how to apply. There is clearly a need to raise awareness and to promote opportunities for R&D. Businesses need to be given support to apply for funding for research and development; they also need to be given practical, hands-on support where necessary to complete the application process.

We, as an Assembly, need to become more informed about research and development and to catch up with the rest of the island in particular. It is important that we learn from good practice elsewhere so that the programmes, systems and processes that we put in place to support R&D can compete with the best that others have to offer. It is also important that we look at our own strengths and weaknesses and understand the potential that exists here for government, business and academia to contribute to R&D.

Phil Flanagan mentioned the lack of resources that businesses have for R&D, and a number of Members also commented on the need to reduce the current high levels of bureaucracy and to support businesses to give them capacity and capability.

Gordon Dunne and Patsy McGlone commented on the risks that companies face in becoming involved in R&D, risks that may prevent them from reaching their full potential. It is only when that potential is known that proper support can be given to businesses to provide them with the capacity and capability to develop their good ideas and bring new and innovative goods and services to the market.

I also wish to comment on some of the short-term measures that the Committee recommended. Invest NI has a mentoring scheme in place for framework programme applicants. That is very commendable. Anything that can be done to increase participation and success rates in attracting European funding is to be welcomed. However, mentoring schemes are needed for all types of research and development activity. Many small and medium-sized enterprises and microbusinesses need support just to get started in R&D. It is when we get those small companies to start thinking about R&D as a key part of their business that we will have started to develop a real culture of research and development.

Businesses find it difficult, particularly in the current economic climate, to allocate funds to anything outside of what they would consider normal business activity. To have to wait for up to 90 days following submission of costs to receive funding can be prohibitive to many small businesses and can prevent them from becoming involved in research and development.

The Committee Chair commented on the need to make our processes more business-friendly by significantly reducing the delay between submission of costs and receipt of funding. The Executive will send out the message that the Assembly is serious about addressing the barriers to businesses becoming involved in research and development.

Judith Cochrane raised the issue of the need to focus on exports, and the report does focus on the need to commercialise research and development. That will result in new, innovative products and services, which, in turn, will make a significant contribution to exports.

Finally, I thank the Minister for her constructive and supportive comments in welcoming the report. She mentioned that research and development is a key driver for innovation and economic growth. The Committee welcomes the Minister’s recognition that more needs to be done and her assurances that the position continues to improve. It looks forward to receiving a more detailed response from her in due course and very much welcomes her commitment and that of her Department to respond more fully to the report in the near future.

I commend the report to the House and ask Members to support the motion.

Question put and agreed to.

Resolved:

That this Assembly approves the report of the Committee for Enterprise, Trade and Investment on its inquiry into developing the Northern Ireland economy through innovation, research and development; and calls on the Minister of Enterprise, Trade and Investment, in conjunction with her Executive colleagues, to implement, as applicable, the recommendations contained therein.

Francie Molloy (Sinn Féin, Mid Ulster)

Before we proceed to the next item of business, I ask Members to take their ease for a few moments.

(Mr Speaker in the Chair)

Private Members’ Business

William Hay (Speaker, Foyle)

The Business Committee has agreed to allow up to one hour and 30 minutes for the debate. The proposer of the motion will have 10 minutes to propose and 10 minutes in which to make a winding-up speech. One amendment has been selected and published on the Marshalled List. The proposer will have 10 minutes to propose the amendment and five minutes in which to make a winding-up speech. All other Members who are called to speak will have five minutes.

Before we begin, I advise Members of the need to take care in their contributions today. The first part of the motion refers to the sentences that were handed down for the murder of Constable Stephen Carroll. The House will know that the Director of Public Prosecutions has indicated his intention to refer matters to do with the sentencing of that case to the Court of Appeal for review. Although the referral has not yet been made, I ask Members to be mindful that those matters are expected to come before the Court of Appeal. I am sure that Members will be careful not to stray into the domain of the courts in Northern Ireland.

I also caution the House that I will expect the debate to focus on the key purpose of the motion, which is to call for a review of sentencing for the murder of PSNI officers, or on the amendment, which calls for a sentencing guidelines council. I ask Members not to stray into any other issue or refer to matters that are not directly related to the motion or the amendment, both of which are very clear-cut. If Members stray too far, I assure them that I will intervene very quickly.

Finally, the motion deals with sensitive and serious issues. I expect Members to be mindful of the dignity of the Assembly at all times. Let us move on.

Jonathan Craig (DUP, Lagan Valley)

I beg to move

That this Assembly, in light of the sentences handed down to those responsible for the murder of Constable Stephen Carroll, calls for a review of sentencing for the murder of PSNI officers.

The DUP believes that this issue is of significant importance. On 9 March 2009, Constable Stephen Carroll was in the twenty-fourth year of carrying out his duty as a police officer and was brutally murdered in a terrorist plot in Craigavon. The whole community was stunned and had to come to terms with the first killing of a police officer for 11 years in Northern Ireland. At the end of March, Brendan McConville and John Paul Wootton received minimum sentences of 25 years and 14 years respectively for their parts in that callous murder. In the case of John Paul Wootton, the minimum sentence was lowered by Lord Justice Girvan to coincide with the ruling of Lord Woolf in the McCandless case of 2004. Clearly, it is thought that those under the age of 18 should be handed a lower sentence in contrast to adult perpetrators of murder. Although that may be true, the sheer belligerence of the act of killing a serving police officer demonstrates a distinct knowledge and understanding of how to commit such an atrocious act.

Although that English ruling has been superseded by a newer framework in England, Northern Ireland does not fall under the new remit for longer tariffs to be administered. Subsequently, a lighter sentence was recently handed down. It should, therefore, be proper that Northern Ireland should have the same legislation as England in that regard. A minimum of 30 years is the sentence. In fact, in the Republic of Ireland, a similar conviction for the murder of a police officer could see a period of imprisonment of at least 40 years. The difference in those sentence periods in comparison with the actual sentences that were handed down suggests that PSNI officers do not hold the same degree of importance as their counterparts in England and the Irish Republic. A concern —

Jim Allister (Traditional Unionist Voice, North Antrim)

Will the Member give way?

Jonathan Craig (DUP, Lagan Valley)

I will.