William Hay (Speaker)

The Business Committee has allowed up to one hour and 30 minutes for the debate. The proposer of the motion will have 10 minutes in which to propose and 10 minutes in which to make a winding-up speech. All other Members who wish to speak will have five minutes.

Mark Durkan (Social Democratic and Labour Party)

I beg to move

That this Assembly takes note of the issues raised by the Committee for Enterprise, Trade and Investment’s scrutiny of the economic downturn, particularly the impact of the downturn on business and the local economy and the ideas submitted by the business sector on how Government can assist business and the economy during this time.

Over the past number of months, the Committee for Enterprise, Trade and Investment has been taking evidence from key stakeholders on the impact of the economic downturn on the wider business sector here. I thank those businesspeople who took time to host visits by the Committee, and all who attended Committee meetings to provide evidence, for giving their valuable time during what is a very difficult period for the business community. I also thank all those people from organisations that represent the interests of business, the social economy, workers and consumers for taking the time to come before the Committee to provide evidence on the difficulties faced by their sectors in the current climate.

The information provided by businesspeople and organisations representing them has given the Committee a good insight into the problems faced by business and the issues of concern to business at this time. The Committee is also grateful to those organisations within Government or attached to Government that provided information and evidence, as well as to the members and staff of other Statutory Committees who took time to respond.

The Committee is due to meet representatives of the banks today. They are in the Building waiting for us; it is not good for us to keep bankers waiting, even in these times, so some of us will attend to them during the lunchtime suspension.

Throughout the scrutiny exercise, business representatives have explained to the Committee where they now find themselves as a result of the downturn. They have told us where they need to be to survive and prosper and what support they need from Government and the Assembly in order to get there. Those are people who represent businesses that, prior to the recession, were prospering, and which are often recognised as leaders in their fields. They are mostly businesses that continue to work well, despite current conditions. However, they ask us to recognise that their continued success is often dependent on the success of others and on the support that they and others receive from Government.

They are not just asking for handouts or subsidies; they are asking for a realistic approach from Government, agencies, and all of us in the public-policy arena, to assist them in practical ways in order to ensure that our economy is supported through this difficult time to a more prosperous upturn in the future.

Through all that feedback, businesses are telling us in the Assembly of the problems and issues that they now face: problems with cash flow and liquidity; banking and finance; utilities; legislation; and Government support and processes. However, they are not only telling us their problems, some have been commending Government for some initiatives and delivery, and are offering constructive ideas for further solutions or better implementation of them.

They have made suggestions about public-sector capital construction and maintenance projects to secure jobs, about skills retention and development, and about economy proofing of various Government decisions, including planning, public procurement and payment of Government invoices. They have also offered suggestions about Assembly and Executive decisions, research and development, funding and investment in business, and facilitating businesses to support each other. They have made a number of proposals on how to support specific sectors, such as tourism, retail and the social economy.

It is evident from what the business sector is telling us that the solutions to the problems that it now faces do not lie solely within the remit of any one Department. It also evident that neither the Department of Enterprise, Trade and Investment (DETI) nor any other Department can work in isolation to resolve the problems of business and the economy. Devolved Administrations cannot work in isolation from wider Government and European intervention. That is further recognised in the evidence that other Committees have provided. All Statutory Committees provided evidence as part of our scrutiny, and that demonstrates that the solutions to the problems that are faced by business touch on the responsibilities of all Departments.

We detected strong, positive anticipation of the forthcoming Barnett review. We sensed a strong welcome from a number of the organisations from which we took evidence for the remit and terms of reference of the review that the Minister of Enterprise, Trade and Investment has established. People hope to see some positive ideas and some well-meshed implementation flowing from that.

The business sector is telling us that Government must help now, during the downturn, through initiatives such as the bringing forward of public-sector capital projects to provide employment and to maintain and upgrade the skills base of the workforce; providing support and encouragement for innovation and research and development; investing in energy efficiency, renewable energy and renewable technologies; encouraging mentoring support for small and medium-sized enterprises from larger, successful businesses; and intervening with the banks on behalf of business to ensure that the banking needs of the business sector are better understood and properly met.

A further simple initiative is to ensure that Government invoices are paid within the 10-day target, and we shared with the other Statutory Committees the statistics on the payment of Government invoices that the Minister of Finance and Personnel provided. We have now shared those statistics with all Members, and we encourage all the other Committees to follow up on that to ensure that all Departments meet that target.

Businesses have told us that they not only need support to get through the downturn but that they need support from Government now to help them to reach a position whereby they will be able to take full advantage of the upturn when it comes. Recently, we have heard some in the media say that the worst of the downturn is behind us and that an upturn can be expected towards the end of 2009 or the beginning of 2010. Other reports suggest that we will go through further pain next year; some talk of a jobless recovery in some sectors before long-term sustainable recovery in the economy is achieved.

The only certainty is that we do not yet know for certain when the upturn will come. No Member will deny that the Assembly has a responsibility to ensure that, when the recovery does come, we are poised to take full advantage of it for the benefit of the local economy. The business sector is giving a clear message that not only does it needs our support now to get through difficult times but that it wants to know that there is a clear framework for initiative and intervention for the future.

When the upturn comes, the business sector wants us to be ready to attract more long-term sustainable foreign direct investment and to support our indigenous businesses of all sizes to maintain and grow their markets, their levels of employment and, where appropriate, their export markets. It wants us to be ready with a skilled and motivated workforce in all sectors of the economy and to be ready to support business financially to maintain cash flow and liquidity to help survival and, beyond that, growth. It wants Government to be ready with appropriate infrastructure in place for planning, utilities, communication and IT networks.

The business sector is telling us that it requires increased efficiency and effectiveness from Government to cut through unnecessary red tape and bureaucracy and to ensure that more of the initiatives that are announced by the Government in London are better co-ordinated with the devolved authorities and with better liaison with the banks here so that initiatives are better understood and can picked up on. Business wants to ensure that, where the Government are involved, services to businesses are delivered where and when they are needed, whether those are services to directly support business, to regulate business or to carry out some other enforcement activity.

I ask the Assembly to note the issues that have been raised in the report and to use the debate to reflect on the interest that the House and all its Committees have in the various sectors of business and the positive support that they have shown. As Assembly Members, we want to make it clear to businesses that we are behind them and we get their message about how they want us to help and support them.

I want to take this opportunity to inform the House that I will step aside as Chairperson and member of the Committee for Enterprise, Trade and Investment. I thank my fellow members for their good work and effort during my time on the Committee, although I acknowledge that that work did not involve a lot of travel. I thank the Committee staff: the Committee Clerk and the Assistant Assembly Clerk and the previous Committee Clerk and Assistant Assembly Clerk. I also thank the Assembly’s Research and Library Service and all the Committee support in the Assembly.

Simon Hamilton (DUP)

I begin by acknowledging the Chairperson’s comments. Opening the debate may be one of his final public duties in that role. On behalf of my colleagues, I acknowledge and thank him for his chairmanship during the past two years.

In the 10 minutes that the Chairperson had to make his opening remarks, it would have been difficult to do justice to the hours upon hours of evidence that the Committee has taken during the past number of months and the reams and reams of papers that were produced as a result. In such a short time, it would be difficult to do justice to the many points that were raised. In the time that is available to me, I want to talk about the Assembly’s preparation for economic recovery rather than about the recession.

So much evidence has been taken, and Members have so much knowledge from their own experiences, that it would be easy to wallow in collective self-pity about what has gone wrong over the past number of months. However, now is the time to turn our attention to recovery and to prepare for the inevitable upswing. In saying that, I do not want to be misinterpreted as having my head in the sand. From the evidence that the Committee has taken and from personal contact with business in my own area and beyond, I understand that times are tough and that businesses face challenges.

However, to look back at what went wrong and caused the economic downturn is no way to recover from it and to set Northern Ireland up for the future. The Assembly must acknowledge that through us, as elected representatives, and through the Departments and Ministers, action can be taken to correct problems and improve the situation for the future so that Northern Ireland can take advantage of the recovery when it happens.

I want to focus on three broad areas that are germane to the Department of Enterprise, Trade and Investment. The Chairperson is correct when he says that no Department is immune from the subject: so broad is the remit of economic development that every Department has its role to play.

The first of the three specific areas that is relevant to the Department of Enterprise, Trade and Investment is energy. During the past number of years, we have become used to talking about fluctuating energy prices and how they present problems for business in general and, particularly, for businesses in Northern Ireland. Northern Ireland imports 99% of its energy and is, therefore, dependent on energy from elsewhere. That comes with consequential costs.

I am aware that consultation on the strategic energy framework is ongoing. That presents an opportunity for a bold move forward for energy in Northern Ireland. I have been an unashamed and unabashed advocate of such measures as expanding the natural-gas network and opening up existing licensed areas to much better competition. I have also supported improving and making smarter the electricity-grid infrastructure, not only because it creates efficiencies that can be passed on to businesses but because it allows the undoubted renewables potential in Northern Ireland to be tapped into. That is a necessary step towards achieving the Assembly’s goal. It brings with it job creation, safer and more secure supply, and, hopefully, competition in prices in the longer term.

The second area is telecommunications. I welcome the coming ashore of the Project Kelvin cable. The Minister and the Chairperson will be glad that I will not dwell on where the cable has come ashore, or where it will eventually end up; that does not matter. What matters is that soon Northern Ireland will, for the first time ever, have direct connectivity internationally.

That is the important point. It is good to see that happening in tandem with the likes of next generation broadband access, and BT will roll that out in the Balmoral exchange area. There is a fund of £15 million for next generation access and a £1·9 million fund for rural broadband access. We usually talk about infra­structure as bricks and mortar and cement and tarmac on the ground, as I did last week in the Budget debate. However, given that our economy must compete globally, giving remote areas the direct connectivity of next generation access is every bit as important — if not more so — as having a good road infrastructure.

In the limited time left to me, I will talk briefly about tourism. There was worrying evidence of a drop of as much as 40% in North American guided-tour visitors. Northern Ireland has massive tourist potential, and I am glad to see the Titanic project moving forward. There was good news about the Giant’s Causeway visitors’ centre, and there have been improvements in our marketing and branding strategy for Northern Ireland. It is good to see that, even in an economic downturn, visitors from the Republic of Ireland increased by 14% in the past year.

There are actions that the Department can and should take. Those are three broad areas in which I would like to see continued work.

Paul Butler (Sinn Féin)

Go raibh maith agat, a Cheann Comhairle. Tá mé sásta go bhfuil cead agam labhairt ar an díospóireacht seo inniu.

I wish the Chairperson of the Committee all the best, whatever his future intentions may be. He did not tell us where he is going. I thank him for all his work over the past year and in particular for this motion. I have not been a member of the Committee from the outset of the inquiry into the economic downturn; however, we have received a strong sense of it from written and oral evidence. We travelled to Northwest Marketing, in Mark Durkan’s constituency, and listened to representatives of business, including the CBI and the Institute of Directors. That gave us a clear sense of how the economic downturn affects many small and medium-sized businesses and how they are trying to weather the storm and get through the crisis.

We should also recognise that the Executive and the Assembly have come in for criticism. We may not have the powers to deal with the issues that affect us in the economic downturn, but decisions have been made on public-sector construction schemes, industrial rates have been capped, and regional rates have been frozen. The Minister announced recently the short-term aid scheme to help businesses. Moreover, as has been said, dealing with the economic downturn is not the responsibility of just one Department or Committee — even though it was the DETI Committee that tabled the motion.

I am also a member of the Committee for Employment and Learning and have seen how the economic downturn has affected apprenticeships. That Committee’s report, which was debated in the Chamber yesterday, contained evidence that the Committee had gathered from Bombardier Shorts, NIE, Phoenix Natural Gas Ltd and the construction industry. It gave Members a sense of how the economic downturn has affected apprenticeships. I hope that the scheme announced by the Minister for Employment and Learning will benefit apprenticeships. On public procurement policy, the report suggests that quotas should be set so that those entering apprenticeships can get a fair chance. We are attempting to change the perception of apprenticeships so that they have equal status to other career paths such as those through university.

The Chairperson and Simon Hamilton touched on the growth areas of telecommunications and the energy industry. The Committee has discussed the issue of the single energy market and how to get it up and running, because it would be hugely beneficial to all. The Minister should also consider the use of renewables, given the recent evidence on the role that that can play in job creation.

The Chairperson mentioned that some Committee members will meet representatives from the banks later today. Small and medium-sized enterprises in particular are still being squeezed by the banks through lending restrictions. Representatives from the Northern Ireland Manufacturing Group told us how difficult it is for small and medium-sized enterprises to secure loans and overdraft facilities. The group also said that people are losing their jobs because of the banks’ approach to the matter. I hope that the banks will play their part in dealing with the issue.

William Hay (Speaker)

The Members should draw his remarks to a close.

Paul Butler (Sinn Féin)

Go raibh maith agat.

Leslie Cree (UUP)

I also thank the Chairperson for securing today’s debate and for steering the Committee through the investigative process. I, too, am surprised and a little disappointed to learn that he has been recycled.

Like those in the rest of the UK and in the Republic of Ireland, Northern Ireland’s economy has been hit hard by the credit crunch and the resultant recession. Despite some reports of green shoots of growth, we are still very much in the grip of the downturn. The most recent quarterly review confirms that fact, as unemployment now sits at 6·2% for the period from February 2009 to April 2009. The most recent claimant count, which measures the number of people who claim unemployment benefits, stood at 48,000 in May 2009, and the number of claimants is continuing to rise significantly.

Given the mountain of debt in which the Labour Government have placed the United Kingdom, there is the ever-present danger that further squeezes on public spending will result in job losses in the public sector, on which Northern Ireland relies heavily.

The conclusion that can be drawn from the Committee’s research is that the Department of Enterprise, Trade and Investment and much of the Executive, contrary to what the Minister said in January, can and should be doing much more to help businesses in Northern Ireland.

The two areas on which we should focus with more energy are first, helping small and medium-sized businesses to stay afloat, and secondly, helping to lay the foundations for them so that they and emerging businesses can take advantage of up-and-coming opportunities. As the Chairperson said, cash flow is the biggest single problem that faces small businesses in Northern Ireland. Despite the taxpayers’ unprecedented recapitalisation of the banking system, banks in Northern Ireland are largely failing to facilitate local businesses adequately and, therefore, our economy. Failure in that area is costing jobs.

Interest rates are down, but banking costs are not. Thirty-three per cent of members of the Federation of Small Businesses have said that bank-imposed changes to their financial arrangements have made them less well off. Additionally, credit insurers are often refusing to cover those otherwise good businesses, forcing them to go back to the banks because they cannot get credit elsewhere. That allows the banks to increase their margins and to squeeze those of our businesses.

On top of that, some significant reports suggest that although the availability of credit in Great Britain is easing, banks here are taking a different approach. It is a disgrace that it can even be suggested that banks are taking advantage of a situation that they and their parent companies were responsible for making. I urge the Minister to outline the steps that she has taken to ensure that that does not remain the position of the banking sector in Northern Ireland.

The second area on which the Minister should focus is facilitating businesses to make the most of emerging opportunities. The main vehicle for that process is Invest Northern Ireland. The evidence that we have accumulated confirmed what many of us have known for some time; that is, Invest Northern Ireland is too formulaic, too process heavy, too risk averse and too biased towards large organisations.

The Minister’s current review of Invest Northern Ireland and her Department is, perhaps, too little too late for many businesses, and its remit is too narrow to address adequately the inherent problems in that body. However, I ask the Minister to provide an update on progress so far.

I have not had time to address many other matters, most notably the problems of public procurement and the limitations of the Northern Ireland Tourist Board. However, I welcome the Committee’s work, I commend it to the House, and I look forward to the Minister’s response.

William Hay (Speaker)

The Business Committee has arranged to meet immediately upon the lunchtime suspension. Therefore, I propose, by leave of the Assembly, to suspend the sitting until 2.00 pm, when the next Member to speak will be Dr Stephen Farry.

The sitting was suspended at 12.55 pm.

On resuming (Mr speaker is in charge of proceedings of the House of Commons in..." class="glossary">Deputy Speaker [Mr McClarty] in the Chair) —

Sean Neeson (Alliance)

I welcome the motion. The Enterprise, Trade and Investment (ETI) Committee has been very active in trying to address the issues that have arisen because of the economic downturn. Although this is a take-note debate, the Committee has no firm proposals to put to the House at this time. The Committee will, however, meet the Minister of Enterprise, Trade and Investment on Thursday to deal with those and other issues.

Although unemployment is increasing, I can recall that, in the early 1980s, when I was a Member of the Assembly that existed then, unemployment was running at more than 20%. I am glad that Jim Wells is here today, because it is somewhat ironic that on this date, 23 June, in 1986, the 1982 Assembly collapsed. Jim and I are just two of the survivors from that time; after it collapsed, unfortunately, I went on the dole for 18 months, so I can understand how the unemployed feel.

However, I believe that there are opportunities for the Executive to intervene, particularly in the construction industry. Recently, Mike Smyth and Dr Mark Bailey put forward a very strong case for increased investment in social housing. In their report, entitled ‘Addressing the Economic Downturn: The Case for Increased Investment in Social Housing’, they state:

“Housing projects produce a “local economic multiplier effect” — creating local employment opportunities and retaining investment in the local and regional economy. The “local economic multiplier effect” encompasses further economic activity (jobs, expenditure or income) associated with additional local income, local supplier purchases and longer term development effects.”

I very much support Minister Margaret Ritchie’s attempt to get greater investment in social development. However, it is not all negative. I welcome the develop­ments at Bombardier in particular. Recently, new orders have come in for the CSeries aircraft, and planning permission has been granted for a new building at the Bombardier site. Realistically, however, the banks in particular have a major responsibility to release funds. That has created big problems for local companies in Northern Ireland and for the housing market.

From a local perspective, I am concerned about the downturn in global motor car production, which has affected local companies such as Ryobi Ltd and Schrader Electronics. To counter that, there are major opportunities to develop the green economy in Northern Ireland. We only have to look at how Harland and Wolff and other companies have taken advantage of that.

As I said, the ETI Committee has been very active in addressing the issue of the economic downturn. It is important to note that the Committee has received a number of submissions. If we are to move forward, the Committee and the Department of Enterprise, Trade and Investment (DETI) must take heed of what businesses in Northern Ireland are saying. I support the motion.

Jim Shannon (DUP)

I support the motion. The issue is important, because the economy is the key to the future prosperity of the Province. The BBC states that the number of people out of work increased by 1,900 in May, bringing the total number of people unemployed in Northern Ireland to 48,000. That indicates the economic problems that are being faced. The unemployment rate gives people an idea of the problems in the economy.

Our unemployment rate is higher than it has been for a long time. Although the rise of 1,900 was the smallest in the past seven months, the previous month’s rise was similar, at 2,000. In the 12 months to May 2009, the unemployment figure increased by 23,010. That is slightly higher than the UK increase, but just over half of the annual increase in Northern Ireland has occurred in the past six months.

It is not simply a Northern Ireland problem, it is a global one. My colleague the Enterprise Minister, Arlene Foster, stated that:

“Global markets are continuing to adjust to the impact of the current downturn and we are still experiencing its negative effects.”

There is a saying that I do not particularly like, but it is true and it applies to the economic issues that we are involved in: when America sneezes, we are the next to catch the cold. That applies to many. America’s recession has affected the rest of the world, and it will undoubtedly take us some time to rebalance our economy. It also illustrates that the problem started in a place that was beyond our control.

We must not forget that the Northern Ireland unemployment rate remained below the UK average of 7·2%; was lower than the European Union rate of 8·3%; and was lower than the Republic of Ireland’s rate of 10·6% — those figure are all as of March 2009. Our unemployment rate is lower than other regions in the rest of the world. I suggest that it is not all doom and gloom. According to the Ulster Bank, less dramatic increases in job losses suggest that many of our local sectors that were hit by the downturn reacted by cutting jobs early in the economic cycle. The manufacturing and construction sectors, for example, shed excess jobs very quickly when demand started to waiver. That data suggests that the rate of economic contraction is deteriorating at local and national levels.

A report from the Ulster Bank stated that business activity in Northern Ireland fell by almost 2% in March, with the sharpest decline being in the construction industry. We feel that particularly harshly in the Strangford area, which I represent, where the construction industry employs many people. The economist Richard Ramsey said that although the economy was still in recession, the rate of decline had eased. Northern Ireland firms continued to reduce their staffing levels at a rapid rate in March, and the pace of decline was more marked in the UK, albeit marginally, for the first time in 16 months. Richard Ramsey also predicted that unemployment in Northern Ireland will rise above 8% by the end of 2009, and will average 9% in 2010. However, he said one thing that I think gives us all hope; that unemployment will fall back moderately in the second half of next year as economic recovery takes hold. He also believes that the worst of the recession could have passed. His words were:

“It is our belief that the very worst of the downturn is behind us and, while the Northern Ireland economy will experience a deep contraction of around 4 per cent this year, we expect it to return to modest growth in 2010.”

There is hope for the future. The facts and figures tell us that, slowly, there is economic hope, and that now is the time for the Assembly to initiate a rebuild through our Minister and through DETI. I have every confidence in our Minister’s ability to do that and to initiate a programme in which we will see new growth.

There are opportunities for fish processing in my constituency, and in south Down. There are opportunities in farming for further food processing, and Willowbrook Foods has recently employed another 50 people. There are opportunities. There are also opportunities in tourism and in the construction industry, where I believe social housing will play a very clear part. We debated social housing yesterday, and there is no doubt that the construction industry, and social housing in particular, can afford our economy a much-needed boost at this time. I am sickened by people having to sign on for employment support allowance when they want to work. They want opportunities, and social housing newbuilds will provide opportunities for many people across the Province, particularly in my constituency. If all Departments focus on that, and if DETI continues its efforts, I believe that we can and will succeed.

David McClarty (UUP)

Will the Member please draw his remarks to a close?

Jim Shannon (DUP)

We must listen to the Committee and take on board its recommendations. I have every faith in the Minister to do just that.

Mitchel McLaughlin (Sinn Féin)

Go raibh maith agat, a LeasCheann Comhairle. I welcome the report and the debate, and thank the Committee for its work and the opportunity for us to explore these important issues.

I would like to set out the relevant issues on which the Committee for Finance and Personnel has been focusing. I noted several familiar themes among the suggestions that the business sector presented to the Committee for Enterprise, Trade and Investment on how Government can assist business during the downturn.

Those include the need to bring forward capital-investment projects to support the construction sector and that plans for those projects should be communicated effectively to the sector; the important role that local banks can play in increasing lending capacity to small and medium-sized enterprises (SMEs); the need to boost the availability of loan finance to the social-economy sector; the need to ensure that Departments meet targets for prompt payment of suppliers, and the wider role that public procurement can play in supporting local enterprise; and the need for Committees to challenge and monitor Departments’ progress in delivering the Programme for Government, with its primary focus on the economy.

I want to highlight recent and planned work by my Committee to examine those important areas. With regard to the construction industry and DFP’s role as sponsor Department, the Committee heard evidence from the Construction Industry Forum for Northern Ireland about the forum’s role in helping to alleviate the slowdown in the industry. The first evidence session was held on 24 September 2008, and another on 29 April 2009. The Committee received evidence that focused on the recommendations of the interim report of the forum’s procurement task group.

The Committee also took evidence from DFP officials on progress in 2008-09 on the Department’s investment delivery plan. On 1 April 2009, the Committee took evidence from departmental officials and from the chief executive of the Strategic Investment Board on options available for financing the Executive’s investment strategy, which will have a major impact on the construction industry. In the wider economic context, my Committee has continued to monitor the development of a regional economic strategy, for which DFP has lead responsibility, and the implications that the strategic reviews that are being taken forward by other Departments will have on that.

My Committee has also been scrutinising the local banks and mortgage lenders. Although financial services are a reserved matter and the Assembly does not have the power to legislate on them, the Committee decided to challenge and monitor what local banks and building societies are doing to help their customers to weather the storm of the recession. The Committee’s role in that respect is to shine a light on what local financial institutions should be doing and to apply political pressure in a very public way to encourage them to do so.

The Committee held initial evidence sessions in January with the four local banks and the British Bankers’ Association, and last week the focus was again on the local picture when the Committee held hearings with the Bank of Ireland, First Trust and Ulster Bank as well as with local mortgage lenders including Abbey, Halifax and Nationwide. Those discussions included the availability of mortgages locally, including to first-time buyers — an issue that is also important to the construction sector; passing on base-rate cuts to mortgage lenders; the level of fees and charges; mortgage difficulties and repossessions; the availability and cost of loans and overdrafts; the calling in of loans from businesses; and the progress of recent initiatives to stimulate lending and to support borrowing. Last week’s session also discussed the proposal from the Ulster Community Investment Trust for local banks to support the availability of loan finance to the social-economy sector.

It became clear in January of this year that, although there was no shortage of anecdotal evidence, there was a lack of hard data on the realities of what it is like to try to borrow money here. In advance of last week’s session, the Committee took steps to get the local picture. We received a briefing from the Institute of Directors that showed that bank lending conditions for businesses have worsened since the start of the year and that despite the Bank of England’s interest rate cuts businesses are still paying higher interest rates because of a change in how the banks lend. In addition, businesses are finding that arrangement fees and operating charges are more expensive. There is also evidence that the North is falling further and further behind in the uptake of Government-sponsored schemes.

Those were just some of the issues that my Committee raised with local banks and mortgage lenders. Last week’s session was part of an ongoing engagement with local financial institutions to encourage them to show flexibility in meeting the needs of the local economy during the downturn. My Committee intends to support the Executive in their efforts to ensure greater interaction and mutual support between the financial services sector and the Executive.

Jim Wells (DUP)

It is appropriate at this stage to pay tribute to the outgoing Chairperson of the Committee for Enterprise, Trade and Investment. I have sat under the Mr Durkan’s chairmanship for a year and have found it very enjoyable. No doubt, he is grooming himself for a higher position. [Laughter.] At least he has the option of being the nominating officer for his party. All three DUP Committee members are also leaving, but I assure Mr Durkan that we are not leaving in sympathy or out of panic at the prospect of working with his successor. He can take comfort from the fact that his Committee is seen as a step to higher things; although, for some of us, it is not a step to anything too high.

Dealing with the difficult period in the economic cycle has made it an interesting time for the Committee, but we should not be entirely pessimistic. During my year in the Committee, we visited companies that were weathering the storm remarkably well, such as Irwin’s Bakery in Portadown. It employs 500 people and has lost only a couple of staff during the recession. It has battened down the hatches and found new products and new markets. It was very encouraging to find that that company was doing remarkably well given the conditions. In my constituency, B/E Aerospace, which manufactures aircraft seats, has managed to retain all its employees in 2009. There are storm clouds ahead for the aviation industry but given the downturn in the profits of most major airlines, it is remarkable that B/E Aerospace has managed to retain its workforce.

The news is not entirely bad but, realistically, certain issues are causing major problems. Many of us are trying to identify quick fixes. There is a recession and mass unemployment, particularly in the construction sector. Indeed, I understand that 11,200 people in the construction sector are unemployed; those are mostly men. In Kilkeel, in my constituency, that is evident in simple things such as the number of men who turn up at primary school gates to bring their children home. That is not something that would have been happening three or four years ago, but those are men in the building trade who simply have no work. I dealt with one man who has worked as a plasterer for 38 years and who had never signed on the dole in his life. He said that his walk to the jobs and benefits office on Newry Street in Kilkeel was the longest 50 yards that he ever walked in his entire 38 years of adulthood.

One or two issues could be tackled immediately to provide quick fixes. We must bring forward every infrastructure project that is on the stocks of every Department. Nothing would prime the economy quicker than undertaking infrastructure projects and getting the building trade back on an even keel. There is a huge multiplier effect in the building industry, and we must tap into that as quickly as possible.

I also draw the Minister’s attention to the iniquitous position that many companies find themselves in when dealing with the banks. The official bank interest rate is currently 0·25%, and the London interbank offered rate is 1·25%. Why, then, are banks in Northern Ireland charging between 6·25% and 8·75% to ordinary companies that have a good capital base and that have been paying bills and making monthly repayments on a regular basis? Why are those companies being hit with interest rates that are up to 40 times higher than the base rate? Somebody somewhere is making a fortune in the margins between what they are paying for the money and the rate at which they are lending it.

Another issue is worrying me considerably. My daughter is buying a home and is trying to get a mortgage. Needless to say, she is reassured that her oul father will underwrite whatever loan is made. However, it has been interesting to see how difficult it has been for her to obtain a loan. If young people have difficulty obtaining loans, that will have a knock-on effect on the construction trade.

One broker told me that an enormous number of lenders has pulled out of the Northern Ireland mortgage market. Those lenders are perfectly content to take our savings, but they are not prepared to lend back to the community in the form of mortgages. There are only four or five active players in the market. We must address the issue, because lenders cannot be allowed to take our money —

David McClarty (UUP)

I ask the Member to draw his remarks to a close.

Jim Wells (DUP)

Lenders cannot be allowed to take our money but then refuse to lend it back to strong folk who are guaranteed to repay.

David McClarty (UUP)

I am delighted to hear that someone can get money out of you.

Alan McFarland (UUP)

I thank the Chairperson of the Committee for bringing forward the debate. My party colleague Leslie Cree was right to suggest that even in the middle of a downturn, measures can still be taken to solve the situation, to keep businesses solvent, to keep people employed and to come out the other end of a recession looking stronger.

I wish to focus on the various Government finance schemes on offer to businesses across the UK. It appears that, like many other matters, Northern Ireland is a place apart on that issue. The Executive have been sluggish in ensuring that such schemes are being delivered effectively in Northern Ireland. The CBI stated to the Committee that there is difficulty understanding the various finance schemes throughout the UK, and there is a feeling that more services are announced than are actually made available in the end. Similar concerns are shared by the Institute of Directors and the Federation of Small Businesses (FSB). However, I welcome the Department of Enterprise, Trade and Investment’s MATRIX report of what support is available, and I hope that it goes some way to helping local businesses. The FSB stated to the Committee that less than 3% of small businesses say that their banks are making the enterprise financial guarantee scheme available to them. It also informed us that one third of small businesses say that their banks are less helpful now than they were before the credit crunch. Taking into consideration that reduced cash flow can, and does, cost jobs, those reports are extremely worrying.

The Bank of Ireland, the Northern Bank and the Ulster Bank are listed as official providers of the enterprise guarantee scheme, and I ask the Minister what steps she has taken to ensure that they are fully delivering the scheme to Northern Ireland businesses. This morning, the Committee for Enterprise, Trade and Investment had a meeting with the banks, and it is interesting that they confirmed that their priority is to ensure the stability of the institutions, so that the banking world is secure and stable. That comes ahead of them providing for businesses, which might explain some of the issues around high interest rates.

Another area that causes some concern is the Departments’ inability to deliver on their commitments that public sector invoices will be paid within 10 days. Regardless of the political parties from which the Ministers of all Departments come, surely the Depart­ments must improve in that area. What, if any, assistance has the Department of Finance and Personnel, and, particularly, the performance and efficiency delivery unit, given in that area to ensure that the invoices are paid on time?

The euro exchange rate against the pound is an ideal situation for our tourism industry. People in the UK will wish to stay at home because they cannot afford to go to Europe, and Northern Ireland is a good place for them to visit as tourists. Equally, people in the European Union, either from the Republic or from Europe, will be encouraged to come here because of the strong euro. However, it is most unfortunate that there have been a series of attacks in the past week. I listened to the radio this morning and heard that there is anecdotal evidence to suggest that tourists are driving up from Dublin and going to Scotland rather than staying here, because they are concerned about the potential violence and the pressure of the past week. Therefore, it is a serious situation. We had an opportunity to develop our tourism industry, but it is going to be damaged by people behaving badly, and we need to find some way to deal with that.

We have made progress in certain areas, and I welcome that, but we must not become complacent. I hope that the Minister will take the report on board. It will be of use to her and her Executive colleagues. I support the motion.

Declan O'Loan (Social Democratic and Labour Party)

We know that we are in the midst of a global recession. Many people said that they expected 2009 to be the most difficult year, and we are hopeful of matters improving as we move into 2010. We are already half way through 2009, and there has been a lot of pain. I am not oblivious to the fact that there have been major job losses in some firms, as well as heavy job losses in the construction industry. Having said that, we are getting through, and we are managing. A lot of good business is still being done, and investments are being made. Companies are thinking of and planning for the future.

There has been much talk about whether the recession will be V-shaped, U-shaped, or W-shaped with a double dip. I hope that we do not enter that final scenario. Although we must not be complacent, we must look for the positives.

I want to make a few remarks on some unrelated but, I hope, valid points. I have heard good reports about Invest Northern Ireland. It is fairly common to hear critical reports about Invest Northern Ireland (INI), but it has done very good work with its seminars on the credit crunch, and the follow-ups that provide diagnostic assistance to companies. The companies that have availed themselves of that assistance know how beneficial it has been. We should recognise that non-client companies have been included in that. Even before the recent announcement, INI was providing training support to keep people in work and improve the competitiveness of companies.

Comparisons have been made between INI and the IDA in the South, where the situation is now very different. Nonetheless, I have little doubt that the good times will come again. The IDA has been described as a world-class organisation of its type, and, therefore, the comparisons between it and INI must be taken seriously. The Assembly has heard the view of Peter Robinson and others that we are, inevitably, in competition with the South. That view must be challenged. Separate organisations have not been set up to attract business to County Derry and County Antrim just because a firm cannot locate in both areas. The thesis that separate organisations are inevitably necessary for the two jurisdictions does not stand up. As a minimum, a lot more co-operation at a very high level is needed. I wonder whether, as a small region, we can sustain the large international network that is required. In many ways, that network is out of proportion. It is a major challenge for a small region to maintain as many as 13 international offices. That provides food of thought and the potential for work to be done.

After two years, there is still no regional economic strategy, and that is not a good situation. We have three economic policy units; surely, somewhere out of that we should have produced an economic development strategy that looks to the future.

Tourism is an area that has huge growth potential. Despite the Minister’s recent announcements on favouring economic development, I simply despair of the situation involving tourism and the Planning Service.

The Committee for Finance and Personnel is, necessarily, holding an inquiry on procurement, because of the opportunities it can offer to SMEs and their high level of dissatisfaction.

I detect a very variable performance by the banks. At least one bank is extremely proactive in creating schemes for companies that are experiencing difficulties. However, that is not true of all banks.

I noticed evidence in the report from the Ulster Community Investment Trust (UCIT), which provides finance to the social-economy sector. UCIT impresses me greatly as an organisation.

David McClarty (UUP)

The Member must bring his remarks to a close.

Declan O'Loan (Social Democratic and Labour Party)

I would like the Assembly and the banking system do more to help UCIT.

Arlene Foster (DUP)

I welcome the debate, which comes at a hugely important time for our economy. I commend the work of the Committee and its Chairperson, Mr Durkan. I pay tribute to the Chairperson as he steps down, and I look forward to working with his colleague Mr Alban Maginness as he takes on that role. I do not mean to embarrass Mr Durkan, but I hope that Mr Maginness and I will have as good a working relationship as the outgoing Chairperson and I had in the Department and in the Committee. Our relationship could be robust at times, but it was always taken in the spirit in which it was intended, and I believe that we had a good working relationship. I wish Mr Durkan well. If he did not get the chance to travel with the Committee, I hope that he will get that opportunity now.

As with other regions in the UK —

Jim Wells (DUP)

The Minister might be interested to hear that there was an Assembly question about how much each Committee had spent on travel. While other Committees had gone to Colorado and Singapore, the Chairman of the Committee for Enterprise, Trade and Investment was able to reply that, in two years, the total expenditure on travel for that Committee came to the grand sum of £200, which accounts for one visit to a science park, not in Antrim but in Belfast. The Chairman must have some Scots-Presbyterian blood.

Arlene Foster (DUP)

I will let the Chairman answer for himself on that last issue.

As with other regions in the UK, local businesses in many sectors throughout Northern Ireland continue to experience the impact of the global economic downturn. In my capacity as Enterprise Minister, I continue to hear at first hand, as the Committee heard during its evidence sessions, of the pressures that many local businesses face, particularly with respect to reduced sales, output and, of necessity, employment. Mr Wells told us about a gentleman from south Down, and I thank him for bringing a human face to those unemployment statistics.

The number of redundancies continues to rise, albeit at a reduced rate, and, as Members will be acutely aware, in the past year, claimant-count unemployment has increased dramatically. Furthermore, economic forecasts indicate that the local economy will contract significantly this year, before marginal growth returns in 2010. At this stage, I congratulate Mr Wells for finding a positive remark from Mr Ramsey. That was well done, and it obviously involved many hours of research.

I recognise that businesses are looking to the Assembly and the Executive to take the necessary steps to help with the downturn. Consequently, I and my Executive colleagues outlined the December package of measures, which was in addition to the substantial £1·2 billion of public-sector construction schemes that are currently on site. A number of Members, including Mr Wells, pointed out the importance of having public infrastructure construction schemes in place and on site. Those measures are further supplemented by other steps, and they represent a quick and, I would argue, focused response by the Executive to the downturn.

For my part, in my Department, I have been able to take some important short-term steps. Last month, in the House, I announced details of a £15 million short-term aid scheme, and Members will recall that that scheme provides eligible businesses with financial assistance to enable them to retain skilled labour, restructure where necessary, and prepare for the upturn.

That scheme comes on top of other measures. For example, quite early on, when I came into this position, I asked Invest NI to be proactive in its response to the downturn, and I must say that I have been pleased by its response, including its £5 million accelerated support fund, which has helped clients. In addition, it has run credit-crunch seminars, to which Mr O’Loan referred and which have been hugely successful and, indeed, replicated by other business bodies across Northern Ireland.

In the report, as Mr Cree pointed out, Invest NI came in for criticism from a number of people, some of it justified and some not. That was probably because a lot of the evidence to the Committee was retrospective. I welcome Mr O’Loan’s point that Invest NI is changing and becoming more proactive in dealing with clients. In that respect, I want to point out that although larger cases for assistance — for more than £100,000 — take, on average, 63 days to turn round, which is down from the previous average of 111 days, the average net processing time for casework in 2008-09 is 19 days, down from 29 days in the previous year. So, Invest Northern Ireland is quickening up. Although I appreciate that Members will wish to highlight criticisms, and obviously they are entitled to do so, it is important to acknowledge changes when they have been made, and they have been made.

Mark Durkan (Social Democratic and Labour Party)

Recently, the chairman and chief executive of Invest NI presented to the Committee precisely that sort of information about its performance and response, and the Committee was impressed by evidence of better working and thinking by INI than some of the standard commentators give it credit for.

Arlene Foster (DUP)

I thank the Chairperson for those comments. Indeed, the report contained comments about Invest NI being less risk averse.

Again, that poses a challenge to us as politicians. If Invest NI takes the position that it will be less risk averse, as politicians we need to continue with that because it is public money. Saying that we want Invest NI to be less risk averse has consequences for us as politicians; in particular, the scrutiny of Invest Northern Ireland when it is dealing with those firms. I hope that that issue is addressed in the Barnett review of Invest Northern Ireland’s economic development policy, and I think that it will be.

Last Thursday, in my capacity as chairperson of the Economic Development Forum (EDF), I took receipt of a range of proposals to help the exporting and manufacturing sectors. I think that everyone agreed that it was a very useful meeting. The proposals represent the culmination of several weeks’ work from people in the private and public sectors to assess what further actions can be taken at present. The Chairperson recognised the number of people who gave evidence to the Committee for Enterprise, Trade and Investment, and I want to put on record my thanks to those people who spent time in the subcommittees producing proposals to deal with the way forward. I am looking at those proposals and will discuss them with ministerial colleagues. I hope that I will then take back to the EDF ways in which we can move forward.

The economic subgroup reported to me in February 2009 with a list of proposals on what could be done to support the economy. Of the proposals submitted, 18 were prioritised. I am happy to report that 14 of the proposals are being or will be implemented; three cannot be implemented without additional resources; and one is being taken forward by the private sector. That is a good indication that we are listening to the business sector and trying to work with it.

From a budgetary point of view, there is no doubt that things will become more stringent. Mr Cree made the point that there will be further squeezes in the public sector. That will be the case, especially if a Conservative Government are returned to Westminster, as is predicted. We will have to deal with that when it happens. One of my colleagues often says that you have to take the bullet whatever way it is thrown at you. That is one of the issues that we will have to address in coming years.

Local banks, which have received a lot of attention, became a focus for the report. It is right that we have engaged with local banks at Committee and ministerial level. Questions have been asked about what I am doing about the enterprise finance guarantee scheme in particular. I indicated to the House recently that I wanted to speak to the local banks about the scheme. Yesterday, I met with the Ulster Bank and the Northern Bank to encourage them further in the promotion of the enterprise finance guarantee scheme and to try to understand why Northern Ireland is the region with the lowest uptake of that scheme. I have meetings scheduled with HSBC, Bank of Ireland and First Trust Bank, at which we will not only be discussing the enterprise finance guarantee scheme but the key issues of cash flow, credit and investment, and also the margin issue that Mr Wells mentioned.

Tourism is a key area for us, as acknowledged in the Committee’s report. Mr McFarland said that we need to take advantage of the euro/sterling differential, not only with colleagues in the Republic of Ireland but across the euro zone on mainland Europe. I am happy to report to the House that we are doing that and are concentrating on it. To that end, Tourism Ireland launched a campaign in GB two weeks ago about the benefits of sterling for people who come to Northern Ireland on holiday.

I agree with Mr McFarland wholeheartedly that recent attacks should be condemned. A tour bus was attacked, and there were also the most dreadful attacks on immigrant communities in Dungannon and Belfast. Such attacks damage the reputation of Northern Ireland as a place to visit. Yet, a survey pointed out that Northern Ireland is one of the friendliest places in the United Kingdom to visit. It is very difficult to square that circle at present. However, we know that the people who perpetrate those crimes are a small minority, and they must be brought to justice for us to move forward on tourism.

Jim Shannon (DUP)

Will the Minister acknowledge that Esther Rantzen’s comments were unhelpful and that they tarnished the reputation of Northern Ireland?

Arlene Foster (DUP)

I do not know whether she made those comments from a position of ignorance, or why she made them, but they were unhelpful. She tarred the whole of Northern Ireland with the same brush. The comments were hurtful to a lot of the community here in Northern Ireland.

I recognise the significant impact that the downturn is having on many sectors, businesses and individuals throughout Northern Ireland and, as I outlined today and on previous occasions, we are taking whatever steps we can to help. However, as I said in my opening remarks — and I think that this is what Mr Cree was referring to when he spoke about my January remarks — we are in a global downturn, and action needs to be taken on a global and national scale. For that reason, some of the measures taken at national level are to be supported. National support for the banking sector is bearing some fruit. I recognise that there are continuing difficulties with the banking sector, but it seems that it is stabilising to a greater degree than it was.

Businesses welcomed a number of schemes that were put in place but, given the complexity of the times, there was a need to bring together those schemes and to give some information to the business sector. That is why we brought together MATRIX, which is now up and running. I have shared that information with the business community through the Economic Development Forum. As Mr McFarland said, CBI and IOD mentioned the difficulties that are being faced with the take-up of those schemes and, therefore, it was necessary for us to give that information back. MATRIX is updated regularly, and I informed the banks of that yesterday. I also informed them that we are happy to use any information that they have in our MATRIX.

It is important to recognise and support local businesses through the short-term pressures that they are facing as a result of the global downturn, but it is also essential that we keep focused on the upturn. I think that it was Simon Hamilton who referred to the upturn, and anticipating recovery. That is where our research and development schemes are crucial. If we are looking to the upturn, we must be ready to deal with the issues that face us when it comes.

As Members know, we have ambitious goals for the economy and, owing to the downturn, we will have to be patient and work through the difficulties that we face. I am committed to doing all that I can as Minister of Enterprise, Trade and Investment. That is one of the reasons why, last December, I announced the review of economic development policy, which the Committee Chairperson referred to as the Barnett review. As Members will be aware, the overall aim of the review is to determine whether existing DETI and Invest Northern Ireland policies, programmes and resources contribute optimally to the delivery of productivity goal that is contained in the Programme for Government. To date, the review panel has completed its call for evidence and analysis, and it is developing its recommendations with a view to reporting to me during the summer months. I am grateful for the in-depth and wide-ranging consultation that the review panel has undertaken in recent months. I have met the panel on a number of occasions, and I am looking forward to taking receipt of its report and recommendations.

Our shared aim is to do all that we can to help the local economy to take advantage of the upturn. We have looked to the past; it is time to look to the future, and it is hoped that the review helps us to concentrate our minds in that way.

I thank the Committee for the report; it will be useful to me as we move forward. I thank the Committee members for their work, time and effort.

Jennifer McCann (Sinn Féin)

Go raibh maith agat, a LeasCheann Comhairle. In my capacity of Deputy Chairperson of the Committee for Enterprise, Trade and Investment, I thank the outgoing Chairperson for the good work that he has done on behalf of the Committee and for the support that he has provided in that role to members and Committee staff.

I restate the Committee’s appreciation to everyone who contributed to its scrutiny of the impact of the economic downturn on businesses. This is a difficult time for business, and when businesses go through difficult times, the negative impact on employment and prosperity affects communities and families. It also has a knock-on effect on other local businesses, especially in the retail sector. Without intervention to support businesses, that can create a downward spiral.

The Committee has welcomed the initiatives that have been announced to provide much-needed support, especially the recent announcement in relation to the short-term aid scheme that was announced by the Minister. That scheme can help businesses of all sizes to retain key staff. The Skillsafe scheme, which was announced by the Minister of Employment and Learning, can also help businesses of all sizes to retain apprenticeships and ensure that the skills are available that businesses will require when the economy recovers.Indeed, that was also discussed in the debate that was held yesterday on the way forward for apprenticeships.

Some of those who contributed to the Committee’s scrutiny highlighted the difficulties faced by SMEs, and Members concentrated heavily on that sector during today’s debate. Those witnesses requested support and assistance for small- and medium-sized enterprises to help them to survive the current downturn and to prepare for the future upturn.

Some Members spoke about the Ulster Community Investment Trust (UCIT), which made constructive suggestions on how Government can assist the social economy through bank loan schemes. Similar schemes already operate in the South of Ireland, in Britain and in the United States. UCIT sees its key challenge as ensuring that sufficient capital comes into the social-economy sector to enable it to respond to the current economic climate and continue to create jobs and wealth in our most deprived communities.

The social-economy sector is vibrant and growing and any support that it receives can only help the wider economy. That sector and UCIT will welcome the £2·5 million programme announced by the Minister yesterday, and I look forward to hearing more about that programme when the Minister appears before the Committee on 25 June 2009. As I said before, the social economy creates employment, which in turn creates spending, particularly in disadvantaged areas. Therefore, it is essential that the social-economy sector be given support.

I will move on to Members’ comments. First, I apologise for not being here at the beginning of the debate when Mark Durkan highlighted the problems faced by business and the many constructive suggestions that business made on how Government can help at this difficult time. One of the suggestions was the bringing forward of public-sector capital builds projects to provide employment and to maintain and upgrade the skills base of the workforce. Further suggestions included the provision of support and encouragement for innovation and research and the development and investment in energy efficiency and renewable energy. Mr Durkan also suggested that Government should intervene with the banks to ensure that the banking needs of the business sector are met.

Simon Hamilton spoke about how the economy could be helped through self-sufficiency in energy, improved telecommunications and by examining our tourism potential. Some Members referred to the recent racist attacks on the Romanian community and how they will be viewed in a negative manner by potential tourists. On behalf of Sinn Féin, I, like other Members, condemn those attacks. I also hope that ventures such as the cultural and community-based tourism projects that some local community organisations have devised will be considered by the Tourist Board when it examines the resourcing and financing of all tourism projects.

My party colleague Paul Butler referred to the impact of the downturn on SMEs. He also mentioned the good work of the Assembly and the Executive in that regard.

Leslie Cree spoke about the increase in unemployment and about the potential for public-sector job losses. He also mentioned the need to do more, especially for SMEs, and he detailed the help that that sector requires.

Sean Neeson highlighted the opportunities that exist for the Executive in investing in social housing, a point that was also made by Jim Shannon. At recent meetings with the Committee, the credit unions said that if they could they would invest up to £100 million in social housing. That must be welcomed, because we hear constantly about the need for social housing. There is a great need for such housing, and an increase in its construction would help people. I hope that we can examine the potential of such investment for people.

My colleague Mitchel McLaughlin also thought that there will be an eventual upturn in the economy, and he viewed the current downturn as an opportunity for all of us to explore some of the issues.

He spoke of the need to support the construction industry, lending, the social economy and local enterprise; he highlighted the recent work of the Committee for Finance and Personnel and its recent meeting with the banks’ representatives. The Committee for Enterprise, Trade and Investment will also hold such meetings to discuss the issue.

Jim Wells mentioned the companies that are doing well in the current climate and said that there is positive news; he spoke also of the problems in the construction sector. Alan McFarland focused on Government finance schemes and the need to ensure that they are available, understood and delivered where they are needed.

A recent report by the Institute of Directors said that some businesses, particularly small and medium-sized businesses, were unaware of those schemes and what they offer. There was a view that the banks and Invest NI should, perhaps, be more proactive in informing businesses of those schemes.

Declan O’Loan said that much good business was still being done, and he mentioned the need to look for the positives; he touched upon the need for an economic development strategy and he mentioned public procurement. At the risk of repeating myself, the opportunities for public procurement, particularly for small and medium-sized local businesses and the social-economy sector, must be recognised and must be driven in the necessary ways.

The Committee for Finance and Personnel is conducting an inquiry into public procurement policy, and it is essential that public procurement policy have social clauses embedded from the start of a project to its delivery to ensure that small and medium-sized businesses and the social-economy sector can get a foot on the ladder to compete for contracts and that disadvantaged areas can benefit. That is essential.

Gerry McHugh spoke of the need to work on behalf of the consumer and the need to re-skill our workforce to provide jobs and help communities. He touched upon inflation, increases in utility prices and the rising cost of food. Only yesterday, I was with representatives of the Consumer Council who said that although some prices are coming down, food — an essential, basic commodity — does not seem to be coming down in price; rather, it is increasing. We should be concerned about that increase, particularly its effect on families, elderly people and those with disabilities on low income.

The Minister of Enterprise, Trade and Investment spoke of the pressures on business and the need to take the appropriate steps to help. She spoke about the measures being taken by the Executive in response to the downturn, including the short-term aid scheme, the work of the accelerated support fund and improvements in Invest NI’s performance.

The Minister spoke about the review of economic development policy; we look forward to its outcome and hope that it will conclude quickly. She said that further pressures on public finances are inevitable and that they will have to be dealt with.

On behalf of the Committee for Enterprise, Trade and Investment, I welcome the news that, like the Committee, the Minister is encouraging the banks to help business where they can. Most people must see that the Assembly and the Executive, through their Committees and Ministers, are trying their hardest to deal with the banks to increase the much-needed cash flow to businesses.

In addition —

David McClarty (UUP)

Will the Member draw her remarks to a close?

Jennifer McCann (Sinn Féin)

She highlighted the need to focus on the upturn and the hope for the future.

I wish to thank everybody who contributed to this important debate and thank again the outgoing Chairperson.

Question put and agreed to.

Resolved:

That this Assembly takes note of the issues raised by the Committee for Enterprise, Trade and Investment’s scrutiny of the economic downturn, particularly the impact of the downturn on business and the local economy and the ideas submitted by the business sector on how Government can assist business and the economy during this time.

David McClarty (UUP)

Questions to the Minister of Enterprise, Trade and Investment begin at 3.00 pm, so I ask Members to take their ease until that time.