Green New Deal
Social Development
2:00 pm
Chris Lyttle (Alliance)
1. asked the Minister for Social Development to outline the results of the economic appraisal carried out in relation to the £12 million budget allocated for the green new deal. (AQO 2016/11-15)
Nelson McCausland (DUP)
A cross-departmental group, which was chaired by my Department and included representatives from the Department of Enterprise, Trade and Investment (DETI), the Department of Agriculture and Rural Development (DARD) and the Department of Finance and Personnel (DFP), developed a full economic appraisal to determine the most cost-effective use of the £12 million available to deliver maximum domestic energy efficiency improvements.
The economic appraisal was developed in accordance with the guidance in the Northern Ireland Guide to Expenditure Appraisal and Evaluation. The criteria used for the options within the economic appraisal were to determine the most cost-effective way of spending the £12 million, ensuring that the maximum benefit could be realised from the expenditure.
The options considered were a business proposal from the Northern Ireland Green New Deal Group and a business proposal from the Northern Ireland Housing Executive for increasing the domestic energy and thermal efficiency of the domestic building stock in Northern Ireland using the funding available. The options were assessed on the basis of what they proposed to deliver in the context of improving energy efficiency in domestic properties, any associated benefits or costs, wider economic benefits in relation to private-sector expenditure, direct job creation income and multiplier effects. It also assessed any associated risks around the potential to deliver the proposal, including where those risks may lie.
The options submitted by the Northern Ireland Housing Executive have been successful and approved by DFP. I hope to be making an announcement on the details of that in the next few days.
Chris Lyttle (Alliance)
I thank the Minister for the update in that regard, but, given that it is 18 months after that £12 million funding was confirmed, is this another case of Northern Ireland missing an opportunity to improve energy efficiency in our homes and create jobs that is being taken in the rest of the UK?
Nelson McCausland (DUP)
No, I do not think it is. The money that was allocated will all be spent on improving energy efficiency, which is, of course, one of our priorities in Government. There were reasons for the delays — some of those were about getting information in order to carry out the proper appraisal — but we are in a position where all of the money will be spent, and spent on the purpose for which it was intended, which is a Government priority.
George Robinson (DUP)
Does the Minister agree that, whatever option is chosen, the proposals and their associated outworkings will be aimed at tackling some of the causes of fuel poverty across Northern Ireland?
Nelson McCausland (DUP)
The money will indeed be spent in a way that will help to address fuel poverty by improving energy efficiency. We are all familiar with the causes of fuel poverty, and one of the ways of addressing it is by improving the energy efficiency of homes. It is not the only issue that we are taking forward in that regard. It is not the only measure to address fuel poverty. There is a range of measures that we have in that context, such as the warm homes scheme and so on, but all of those are certainly directed towards that one single aim.
Phil Flanagan (Sinn Féin)
I thank the Minister for his answers. He will hopefully agree with me that the green new deal offers great opportunities for political leaders to create the right conditions for the private sector to deliver on key social and environmental objectives. Does he also agree with me that to compare and contrast an economic appraisal put forward by the Housing Executive, with its massive army of staff, and an economic appraisal put forward by the Green New Deal Group, which was headed up by a small number of committed volunteers, is a very narrow-minded thing to do, and that perhaps more credence should have been given to an economic appraisal put forward by a very small group, given that very little support was given by Government?
Nelson McCausland (DUP)
The position is that an economic appraisal looks at what is put in front of it. It has to be carried out fairly and honestly, and we have reached a conclusion on the basis of the economic appraisal. There were people involved in the Green New Deal Group’s proposal with considerable experience, and I am sure their proposal benefited from that experience. They were afforded every opportunity to strengthen and build on it during the process. The process was almost iterative at times, but the outcome is the one that we have now concluded.
Danny Kinahan (UUP)
I thank the Minister for his answers, although I am a little confused. Are all the studies and economic appraisals now complete? Are the timelines going to be followed? We have been told that the money will be spent, but when will it be spent? What is the real reason for its being stuck between two Departments? Perhaps we have just had a hint from Sinn Féin that it does not agree with the way in which we are going forward. What is holding up the green new deal?
Nelson McCausland (DUP)
The Member’s questions betray some measure of confusion, because I thought that I had been quite clear: we have now reached a decision on the way forward. The money that is allocated will be spent on improving the energy efficiency of homes and addressing fuel poverty. It is a good proposal, and I will be making the announcement about it very soon. I am sure that the Member will be patient as he waits for that announcement. There were issues that led to the timescale for coming to the decision. It was most certainly not an issue between Departments. It was about affording the Green New Deal Group every opportunity to put forward as strong a case as it possibly could.
Roy Beggs (UUP)
Members, I omitted to advise you that questions 4 and 11 have been withdrawn and require a written answer.