British-Irish Council Summit: 22 June 2012
Ministerial Statements
Peter Robinson (DUP)
In accordance with the requirements of the Northern Ireland Act 1998, I wish to make the following report on the eighteenth summit meeting of the British-Irish Council, which was held in Stirling Castle, Scotland, on 22 June. All Executive Ministers who attended the summit have agreed that I should make this statement to the Assembly on their behalf.
The Scottish Government hosted the summit, and the heads of delegations were welcomed by the First Minister of Scotland, the Rt Hon Alex Salmond MSP. The UK Government were led by the Secretary of State for Scotland, the Rt Hon Michael Moore MP. The Irish Government were led by the Taoiseach, Enda Kenny TD, and the Welsh Government by the First Minister, the Rt Hon Carwyn Jones AM. The Chief Minister, Senator Ian Gorst, represented the Government of Jersey, and the Chief Minister, Deputy Peter Harwood, the Government of Guernsey. Finally, the Isle of Man Government delegation was led by the Chief Minister, the Hon Allan Bell MHK. In addition to the deputy First Minister and me, the Northern Ireland Executive delegation included the Minister of the Environment. A full list of participants is attached to the statement that has been provided to Members.
The summit again underlined the British-Irish Council’s unique and important role in promoting and developing links between its member Administrations and in providing a forum for consultation and co-operation on east-west issues. Member Administrations continue to consult, discuss and exchange information with each other on a wide range of matters of mutual interest. All parties at the summit welcomed the opportunity it provided to engage directly with their counterparts on issues of significant common interest and concern. The summit discussed the economic situation across each jurisdiction. The delegations each outlined the challenges they are facing and the actions they are taking in response to what is, despite some variations across the jurisdictions, a common picture of economic uncertainty.
The Council exchanged views and examined early progress on the various initiatives aimed at helping young people into employment in each member Administration. That was also discussed at the previous summit in Dublin. In order to sustain and develop that important work, the Council agreed to commission and consider at its next summit in Wales specific proposals to develop further its work on youth unemployment or employment.
The Council reviewed in detail the work undertaken by the British-Irish Council marine energy work stream and welcomed the progress on advancing marine energy co-operation since the issue was last discussed in 2010. It noted the excellent progress that has been made in negotiations with the European Commission since 2010 and endorsed the formalisation of the EU-wide partnership for marine renewables through the establishment of an ocean energy ERA-NET collaborative action between member states and the Commission. The Council also considered how the issue of marine energy could be progressed at European level during Ireland’s presidency of the European Union in the first half of 2013.
The Council noted progress outlined in the update reports, which were provided by each of the eleven BIC work sectors. They are set out in the communiqué. The Council had a brief exchange on the possibility of collaboration on the issue of creative industries within the British-Irish Council. Heads of Administrations asked the secretariat to prepare a scoping paper in time for the next summit on the potential benefit of BIC member Administrations co-operating in that area.
Finally, the Council noted the secretariat’s progress since its establishment in Edinburgh on 4 January 2012 and endorsed the secretariat’s business plan. At the conclusion of the meeting, the Council noted that the next BIC summit in November 2012 will be hosted by the Welsh Government.
Mike Nesbitt (UUP)
I thank the First Minister for his update. Given, as he said, that the BIC is an opportunity to engage directly with counterparts on issues of significant common interest and concern, and given the potentially devastating impact of welfare reform on the nations and regions of the UK, why was there no discussion on that key issue?
Peter Robinson (DUP)
Welfare reform was discussed at the joint ministerial council meeting between the member Administrations. Obviously, it would not be a matter for the Guernsey, Jersey and Isle of Man Governments. However, as the Member stood on a manifesto along with the Tory MPs who voted welfare reform through the House of Commons, we know what side he would have been on.
Gregory Campbell (DUP)
The First Minister indicated that the economic outlook of the various countries was discussed. Can he give us an update on the progress, such as it is, in relation to corporation tax being devolved?
Peter Robinson (DUP)
We referred to the issue of corporation tax during the course of the meeting, and we continue to take every opportunity we can to indicate how important it is to the Northern Ireland Administration that we rebalance our economy in Northern Ireland. It is one of the key issues for this Administration. We have pressed the case, not only at joint ministerial council and BIC meetings, but at a meeting of the working group dealing with corporation tax, which was held during the week. During the course of that meeting, we could not reach agreement with the Treasury and NIO Ministers on all of the issues, but we were able to agree on a considerable number of the working arrangements, should corporation tax be devolved and tax-setting powers be given to the Northern Ireland Administration. There are outstanding issues to be settled, particularly in relation to the cost of the Northern Ireland block.
Caitriona Ruane (Sinn Féin)
Go raibh maith agat, a Cheann Comhairle. Gabhaim buíochas leis an Chéad Aire as a ráiteas go dtí seo. I thank the First Minister for his statement. Was there any discussion on the banking situation? I note that this has been a particularly difficult week for people who have accounts in various banks. I would appreciate an update on that.
Peter Robinson (DUP)
There were discussions on banking, but they related to issues that occurred earlier than the problems faced by Ulster Bank and, indeed, RBS, customers elsewhere in the UK. I agree with the Member: it is inexplicable to many of us how it can take so long to resolve this issue and why it takes longer to resolve in Northern Ireland than elsewhere. Meanwhile, people are being refused easy access to their funds, and, in some cases, if they are out of the country, they cannot access them at all. I implore the Ulster Bank to put the necessary resources in place to get this matter finished within hours, rather than taking further days to do so.
I thank the First Minister for his statement. Can he give us any more detail about whether anything about alleviating youth unemployment can be learned from other jurisdictions?
Peter Robinson (DUP)
I will be very careful here. First, in relative terms — I underline the phrase “in relative terms” — the Northern Ireland situation is not as dire as that elsewhere in the United Kingdom or the Republic of Ireland. We have lower levels of unemployment and youth unemployment, although, for the deputy First Minister and I and the Minister who has responsibility for education and learning, those are still unacceptably high.
As First Minister, I always avoid stealing the thunder of Ministers who are about to make statements, and I understand that Minister Farry will be making a statement later on a strategy dealing with youth unemployment. That strategy is based on early interventions and looks at building up a covenant between the Government, the employer and the individual.
Chris Lyttle (Alliance)
I thank the First Minister for his statement. Will he elaborate on the nature of the discussions about potential collaboration in the creative industries?
Peter Robinson (DUP)
We were very pleased to take part in discussions on that issue, and we agreed that we would deal with it as a major focus of our next BIC summit in Wales. As everyone knows, the creative industries have become increasingly important in Northern Ireland. It is a significant growth sector, not only with the film industry coming to or television series being produced in Northern Ireland but with the spin-off of that, particularly Project Kelvin. That allows people to create music in Northern Ireland and to have it on the west coast of America or, indeed, New York, in an instant. That means that we have opened up the possibilities for people in the creative industries in Northern Ireland globally.
We also have people at the forefront of app design, which is a growing area in the creative industries. So, there is massive potential for us. If we believe that we can create some partnerships and working arrangements with other Administrations that will be to our benefit, we will be happy to do that. Of course, one of the key factors has been the indication that the Chancellor gave about tax on major television productions. That had been a tax break for the film industry, but, with it being a tax break for television, it should allow us to be much more competitive in bringing companies to Northern Ireland.
George Robinson (DUP)
Can the First Minister give the House an update on the establishment of the BIC secretariat?
Peter Robinson (DUP)
As I indicated in the statement, the secretariat officially went live on 4 January. Scotland won the bid and is taking it forward enthusiastically. It is good to see Scotland looking to the long term with its British heritage in taking the British-Irish Council secretariat forward.
We have six members of staff in place already. The UK Government and the Irish Government have put in senior officials to head up the office. The three devolved Administrations have placed a policy officer in the secretariat, so Northern Ireland has a policy officer seconded to it. In the medium term, we expect that the other three territories will provide us with a further member of staff.
Oliver McMullan (Sinn Féin)
Go raibh maith agat, a Cheann Comhairle. I thank the First Minister for his statement. Can he give us some more detail and an update on marine renewables?
Peter Robinson (DUP)
I have to say that that is not an area of departmental activity in OFMDFM. However, I found the discussion of the possibilities to be vastly encouraging. I think that everybody knew that we had the wind and waves around our shores. At the moment, that is probably one of the more costly forms of renewable energy. Nonetheless, it is important and will play its part in our realising our legal requirements under UK legislation and our PFG targets.
As far as Northern Ireland is concerned, we are receiving bids at present for a 600 megawatt offshore licence. There is also 200 megawatt activity off Rathlin Island. So, there are real possibilities there. Our ultimate goal is to get in the range of 40% of our energy from renewables by 2020. That requires us to increase the amount from that source from about 1,400 megawatts to something in the region of 1,800 megawatts. That is a challenge for us. The Executive have set very clear goals for that in the Programme for Government, and they intend to meet them.
Peter Robinson (DUP)
We have very different economies in the BIC. We listened to some of the small islands lamenting the fact that they have 1·5% to 2% unemployment. You can understand that, in the kinds of arrangements they have, it is a very different problem to tackle. Compared with England, Scotland and Wales, we have a lower level of unemployment. We also have a lower level of youth unemployment, but we have a much higher level of economically inactive people, and, in that sector, you will find that almost 50% of young people are economically inactive. That is unacceptable. However, it is acceptable in one set of circumstances: Northern Ireland has a higher level of young people who are students than elsewhere in the United Kingdom.
We have to look at the causes of economic inactivity. The Minister for Employment and Learning will start to drill into that area when he deals with young unemployment issues. The Executive are looking at other initiatives to try to reduce economic inactivity in Northern Ireland and to ensure that people are skilled up, educated and are able to take jobs that become available.
Danny Kinahan (UUP)
I thank the First Minister for his report. When discussing the issue of helping young people into employment, did the Council discuss civic deeds, as the Germans and the Swiss call it, through which the young, serving their state for a year, get a sense of pride and learn their place. It is also a good way of getting people into employment.
Peter Robinson (DUP)
It was not discussed at the summit, though I have had discussions on those issues with the Minister of State, who is looking to bring a particular project to Northern Ireland. So there are possibilities. I think that it is a good start in life. Making a contribution to society is better than remaining at home and watching television or sleeping in bed for half the day. The Minister for Employment and Learning will certainly look at that. However, given his responsibilities, he is looking more at ensuring that people are trained up and get the day-to-day experience of working life in order to take them off the economically inactive register.
Sean Lynch (Sinn Féin)
Go raibh maith agat, a Cheann Comhairle. Gabhaim buíochas leis an Aire as a ráiteas. I thank the Minister for his statement. As regards youth employment, he said: “That was also discussed at a previous summit in Dublin.”
Can the Minister give an update on that?
Peter Robinson (DUP)
The discussion in Dublin set the ball rolling. Certainly, it was the Taoiseach’s view that, having discussed the subject in Dublin, albeit more in the margins of a general discussion about the economy, we should not simply drop it but should take it forward to Scotland and have a more detailed discussion there. When we got to Scotland, the discussion was of sufficient merit and there was sufficient interest around the table that we decided to charge officials with bringing forward recommendations to our meeting in Wales. So, there has been a steady progression since Dublin of the merits of having a joint and combined approach and of learning the lessons from each other’s Administrations as to how we can assist in this area.
Thomas Buchanan (DUP)
I, too, thank the First Minister for his statement. I know that this has been touched on by Chris Lyttle, but will the Minister again elaborate on what benefits will be derived for Northern Ireland through greater collaboration on the issue of the creative industries within the BIC?
Peter Robinson (DUP)
The benefits for Northern Ireland of growing the creative industries can be best seen in HBO’s series, which is moving forward at the Paint Hall — I think that it is now renamed Titanic Studios. The Executive constructed a second studio to take away some of the pressure that was building up in that area. That has created something in the region of 700 jobs. If we can build up and use further locations — many of the locations are outdoor — it gives us an excellent opportunity to take people who have a creative bent and use their skills and talents in a way that best suits the economy as a whole.
Sometimes, when we look at the creative industries, we think of entertainment more than anything else, but it is a key factor in our economy. When HBO comes, it spends tens of millions of pounds in our economy. It employs people and takes services from within our economy, so it is all very supportive of the Executive’s overall main priority, which is to build and rebalance the economy in Northern Ireland.
As far as the benefits of collaboration are concerned, the one thing that any of us who have been involved in politics realise is that, the more you speak to other people who are doing the same kind of things as you but maybe in a slightly different way, the more you learn lessons that you can build into your own modus operandi. That can help us to do things better, and sometimes at a lower cost.
Jim Allister (Traditional Unionist Voice)
The communiqué refers to ongoing work that needs to be undertaken: “to achieve greater integration of wholesale British Electricity Trading and Transmission Arrangements (BETTA) ... with the Single Electricity Market (SEM) ... to realise the full benefits of interconnection”.
Is that an acknowledgement that all is not as well in the functioning of the SEM as it should be, and what action needs to be taken to achieve better integration between the wholesale British arrangements and the single electricity market?
Peter Robinson (DUP)
It is an acknowledgment that, as in every form of life, including the Member’s own, everyone can do better.
Phil Flanagan (Sinn Féin)
Go raibh maith agat, a Cheann Comhairle. I thank the First Minister for his statement. He touched on the issue of youth employment and unemployment and has referred to the fact that the Employment and Learning Minister will make a statement to the House later. Was the issue of emigration arising out of youth unemployment touched on? If so, was there any discussion of the long-term social impact that it will have?
Peter Robinson (DUP)
There can, of course, be emigration outside the islands to other parts of the world, but there is also the movement of young people within the United Kingdom. Our young people, particularly after we have taken them through education and, in many cases, higher and further education, are a massive resource and one that we are very keen to ensure is not lost to the Northern Ireland economy. That is why the Minister will make his statement with the support of his Executive colleagues. It is to ensure that we have people who not only have the skills to take up a job in Northern Ireland but who recognise that they should see their future here, as opposed to elsewhere in the world.
David McClarty (Independent)
I thank the First Minister for his statement. Will he advise the House if he has experienced any opposition from any of the constituent members of the BIC, namely England, Scotland or Wales, to our application for a reduction in corporation tax?
Peter Robinson (DUP)
At a political level, I have not experienced any opposition. I think there is a concern that one of the devolved Administrations will be enthusiastic for Northern Ireland to get that power because they want to get it for themselves, and that might have an overall impact on the decision that will be taken by the Cabinet. However, the Treasury Minister, the Secretary of State for Northern Ireland and the people who we have met from the UK Government have been supportive and are looking at moving forward in a positive way. The First Ministers of Wales and Scotland are both enthusiastic that Northern Ireland should be able to move forward.
It is to the benefit of everybody that we are able to pay our way in the world and that we are less of a burden on the UK Treasury. All that the Northern Ireland Administration need to be sure of is that the cost that there will be to our block grant, because of the Azores ruling, is not such that it sets back the public sector functions that we have to carry out and that need to be carried out at the front level of service. If there is a reduction in our block grant, that will clearly have an impact elsewhere. The money has to come from somewhere. Someone has to do with less. We have to be sure that the boost that we will get to our economy from having corporation tax lowered will be better than the fall that might take place from any loss that might occur as a result of a reduction in spending.