Assembly Committees' European Priorities 2014:  Committee for the Office of the First Minister and deputy First Minister Report

Committee Business – in the Northern Ireland Assembly at 3:30 pm on 7 April 2014.

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Debate resumed on motion:

That this Assembly notes the report of the Committee for the Office of the First Minister and deputy First Minister (NIA 59/11-15) on Assembly Committees European Priorities for 2014. — [Mr Nesbitt (The Chairperson of the Committee for the Office of the First Minister and deputy First Minister).]

Photo of Oliver McMullan Oliver McMullan Sinn Féin

Go raibh maith agat, a LeasCheann Comhairle.  The common agricultural policy is one of our most important European priorities.  CAP brings in between €260 million and €300 million to the farming industry through the single farm payment.  This money goes to approximately 25,000 farmers and their families.  Within the programme is the agrifood industry's Going for Growth programme, and the last rural programme that was gathered up was worth around £500 million.  There is also the European Fisheries Fund, which totals £38 million.  Match funding from Europe is vital for industry and the local economy.  The rural development programme is one European programme that has been successful for our economy.  I will explain the parts that have been successful.

The rural development programme in Northern Ireland is worth around £530 million to the economy.  The majority of funds — 81%, which is approximately £430 million — are directed to support for farm competitiveness and the agrienvironment schemes targeted at farmers and landowners.  The remaining 19% — around £100 million — supports projects that benefit the wider rural economy and improve life for rural dwellers.  Delivered via a local delivery model using the old LEADER approach, this involves 79 joint council committee members, who are elected, and 196 volunteer local action group members, who are social partners and elected representatives.  This approach was launched in 1991 and is the European Community's preferred means of enabling rural communities to take ownership of the development of their area.  It also recognises that local people are best placed to identify solutions to local problems and to make the most effective use of the available resources in taking forward local development plans.

All rural areas are covered and are eligible for support under the programme.  There is a huge demand for the programme, with over 6,000 applications seeking over £336 million in support, which is four times more than the grant budget available.  The programme was fully committed, with letters of offer being issued to 1,820 projects, including 600 farm diversification programmes; 443 projects supported under business creation and development, small microbusinesses employing fewer than 10 staff; 263 tourism projects; 213 service projects; 195 village actions; and 68 heritage projects.  A further 112 projects to the value of £4·2 million have been approved and are on the reserve list, should additional moneys become available.  Spend is on target, and full expenditure is estimated by spring 2015.  An additional £32·7 million in match funding has been levered into the programme to date from private, council and other sources.

One of the big successes of European funding for the community here has been broadband, which has been a vital programme.  Broadband is playing a bigger role in rural life from clusters of SMEs to the farming sector.  Using broadband to apply online for a single farm payment, as the House has debated several times, cuts out errors and leads to faster and earlier payments, which are very welcome.  There is also the maximising access in rural areas (MARA) project, which checks up on elderly people living in rural, dispersed areas and lets them know what benefits they are entitled to.

We have to ensure that, during the incoming rural development programme, we support the call for funding —

Photo of Roy Beggs Roy Beggs UUP

Will the Member draw his remarks to a close?

Photo of Oliver McMullan Oliver McMullan Sinn Féin

— because that is vital.  We have had word back from the community that the rural programme works.  It is vital for our economy, but we must have support when we call for funding for the next round.

Photo of Colum Eastwood Colum Eastwood Social Democratic and Labour Party

I thank the Committee for the Office of the First Minister and deputy First Minister for tabling the motion.  As the Chairman said, it is important that we focus our energy on the massive implications that Europe has for the North of Ireland.  It is the air that we breathe and the water that we drink.  It is sometimes the roads that we drive on, although not enough of the roads that we drive on in this part of the country have been funded to any great level by the European Union.  We can learn major lessons from our counterparts across the border in that regard.

I want the Assembly to show an even greater commitment to the European project and a greater understanding of the implications that Europe has for us.  It would be an idea for us to have a European committee to focus solely on European issues.  It is such a wide and vast area of policy and has so many implications that we need a dedicated committee to look at it.  We should seriously consider that idea.

The South teaches us lots of lessons about how we can engage with the European Union, the European Parliament and the European Commission.  There are people from the Executive from here based in Brussels — we met them when I was a member of the Committee — who do very good work, but we really need to up that engagement.  Every Department in the South has people embedded in Europe, which is a lesson that we could learn.  We are good at understanding that there are implications for us in agriculture, but there is also massive potential for other sectors of our economy.

The Horizon 2020 fund will be a massive opportunity for this part of the world to benefit.  The OFMDFM Committee was told that, unfortunately, our drawdown at the moment was likely to be in the region of £100 million but the Irish Government expected to draw down €1·25 billion.  That is a fairly big difference from what we are expecting to draw down.  If were going for the Dublin estimate by population we should be looking at drawing down around €400 million.  We need to learn the lessons of FP7 and up our game in developing those links in Europe.

Photo of Anna Lo Anna Lo Alliance

I thank the Member for giving way.  Is he aware of DETI and DEL cooperation in setting up a support network to engage with all the stakeholders in trying to go up a gear in approaching Horizon 2020?

Photo of Roy Beggs Roy Beggs UUP

The Member has an extra minute.

Photo of Colum Eastwood Colum Eastwood Social Democratic and Labour Party

I thank the Member for her intervention.  I am aware of that.  It is a good step forward, but we are clearly nowhere near where we need to be.  One hundred million pounds instead of €400 million is a fairly stark figure.  The opportunities around Horizon 2020 have yet to be grasped here.  They are just better at it in the South because they have had years and decades of embedding civil servants over there so that they can understand all the opportunities that exist.  Not everybody in the House would class themselves as pro-European, but, even if you are not, the opportunities are there in all those things.  In the North, we get about £39 per person in research funding; in the South it is £185.  That is a very big difference, and it is an opportunity that our universities and our Government need to look at even more vigorously.

There are also massive opportunities around the green new deal.  We do not really have a green new deal here, and I would like to see one.  There are major opportunities in Europe, given the recent occurrences in Russia, Crimea and Ukraine.  We should be very concerned about the security of our energy supply.  Places such as Scotland do not have the same difficulty because they have a reliable energy supply.  We need to use Europe and ask it to help us to invest in green jobs and green industries and work alongside the European Investment Bank to do all that.

Given the recent TV debates between Nigel Farage and the Deputy Prime Minister of Britain, we also need to be mindful that, whatever happens in Westminster, a British withdrawal from Europe would have a massive impact here compared with anywhere else.  A very large amount of our trade is with the Republic, and we need to be mindful that any attempt to remove Britain from the European Union would have a very detrimental effect in particular on this part of the world.  I would argue, as would a lot of business people, that it would have a massive effect on Britain anyway, but it would have a really detrimental effect on the North of Ireland, given the fact that we have a land border with the European Union.

Photo of Roy Beggs Roy Beggs UUP

The Member must bring his remarks to a close.

Photo of Colum Eastwood Colum Eastwood Social Democratic and Labour Party

I welcome the motion, and I encourage the Executive to up their game and their ambition on this because the figures speak for themselves.

Photo of Roy Beggs Roy Beggs UUP

The Member's time is up.

Photo of Anna Lo Anna Lo Alliance 3:45, 7 April 2014

I welcome the motion, and I will touch briefly on each of the four main priorities identified for the Environment Committee.

On the first priority — a climate and energy framework to 2030 — the Committee welcomed the publication of the Department's first climate adaptation plan in January 2014, which set out the strategic objectives and the timescales for adaptation to climate change.  At the beginning of December, members had an interesting and useful briefing from Lord Gummer, chairperson of the UK Committee on Climate ChangeThe Committee has a particular interest in the greenhouse gas emissions set out in the EU framework for climate and energy policies.  In 2011, DOE published a greenhouse gas emissions reduction plan to achieve the 35% reduction by 2025, as set out in the PFG, and the Committee closely monitors the subordinate legislation referred to in it, which will help to deliver those targets. 

The second priority — the EU initiative on resource efficiency and waste — will build on progress in the implementation of the 'Roadmap to a Resource Efficient Europe'.  That sets out ways of delivering the economic potential to be more productive while using fewer resources and is reflected in the Northern Ireland revised waste management strategy, Delivering Resource Efficiency, which was produced by the Department in 2013 for the period to 2020.  The Committee is aware that some councils may be concerned about the proposed introduction of a 60% recycling target to meet this priority.  We have met council representatives to hear their views on the revised waste management strategy and will engage with them further to gather more information about the implications of this new target, including an indication of the costs that might be involved in meeting a target at that level.  The Committee welcomes any progress made in defining end of waste to allow waste streams to be turned into acceptable products or fuels.  It will monitor closely the introduction of the EC criteria and the extent to which they are compatible with existing Northern Ireland and GB criteria.

The third priority — the framework to enable safe and secure unconventional hydrocarbon extraction — aims to ensure that opportunities to diversify energy supplies and improve competitiveness can be safely and effectively taken up in member states.  The Committee is aware of the significant public interest in the issue because of the potential for hydraulic fracturing in Northern Ireland and will closely monitor any developments in that area.

The final priority that falls within the remit of the Committee for the Environment is state aid modernisation in key sectors.  It relates to aid measures to support energy saving and waste management that directly benefit the environment.  The Committee welcomes the initiative, as it aims to deliver a higher level of environmental protection in Northern Ireland, as throughout the EU, by enabling organisations and businesses to benefit from state aid to deliver these benefits.

Finally, the Committee intends to maintain its watching brief on other relevant EU activity, such as CAP reform, LIFE+ funding and the implementation of the habitats and wild birds directives in Northern Ireland, through updates from the Minister and regular briefings from the desk officer.

Photo of George Robinson George Robinson DUP

As a member of the OFMDFM Committee, I congratulate all those involved in producing the report.  It is a complex task and one that is often not fully appreciated.  The result is a comprehensive overview of departmental and Committee plans regarding European issues. 

Reading the report, I noticed areas that have a direct impact on Northern Ireland's economy and population.  The greatest issue in the public's mind with regard to Europe is agriculture.  I welcome the Committee's concentration on areas such as plant health, single farm payments and the common agricultural policy.  As I am from a rural constituency, those are important issues that have been raised often with me.

I noticed that, under the Department of Enterprise, Trade and Investment, state aid modernisation in key sectors is mentioned.  Let us not underestimate how the finances from Europe and the decisions of this Assembly can aid our indigenous industries to modernise and stay competitive.  That will be the cornerstone of Northern Ireland's future economic prosperity. 

The Committee for Finance and Personnel mentioned the Peace and INTERREG programmes.  They are having an on-the-ground benefit for all our local communities.  It is, therefore, essential that we achieve the best possible overall drawdown of European funds to enable those highly important programmes to continue. 

I also welcome DRD's concentration on public transport.  We have all seen the impact on passenger numbers of European funding for new rolling stock for NIR, under a DUP Minister originally, and how it produced one of the youngest fleets of carriages in Europe, but there is more that can be done.  This is truly having a positive impact on real passenger numbers.

Finally, I welcome DSD's priority of tackling social exclusion, as it is one of the most damaging issues for any individual.  Any and all money towards alleviating it must be welcomed. 

All the areas that I mentioned as the Departments' European priorities are beneficial to Northern Ireland and will help projects become a reality for the benefit of us all.  That will include cooperating with the Barroso task force on an annual basis.

Photo of Maeve McLaughlin Maeve McLaughlin Sinn Féin

Go raibh maith agat.  I welcome the opportunity to address the House as Chair of the Committee for Health, Social Services and Public Safety. 

The Committee considered the question of how the forward work plan could link in with European issues at its meetings on 15 and 22 January 2014.  In doing so, we looked at the European Commission's work programme for 2014.  The issues relating to health and social care are fairly limited.  For example, the Committee noted that, while the framework for safe and secure unconventional hydrocarbon extraction may have general health implications, it does not have a direct link to the work of the Health Department.  However, we have noted the proposals to implement the tobacco products directive.  The Department of Health, Social Services and Public Safety will be involved in the implementation, and the Committee will have a role in considering any secondary legislation arising from the directive.

I will now talk about other matters with a European dimension that are of Committee interest but are not part of the Commission's formal work programme.  The Committee is carrying out a review of waiting times for elective care.  A key element of the review is to identify effective approaches to reducing waiting times that have been used in other countries or regions and could be applied here in the North.  The Committee has taken evidence from academics and government officials who have had experience in countries such as Portugal, the Netherlands, England, Scotland and the Scandinavian countries.  The Committee also regularly deals with secondary legislation that implements EU directives, particularly in relation to food hygiene and safety, and we expect that part of our work to carry on during 2014-15.

Regarding the work that the Committee carried out in 2013 that had a European aspect, we spent considerable time scrutinising secondary legislation required to implement the 2011 EU directive on patients' rights in cross-border healthcare.  We spent a number of months taking evidence from the Health Department, the Health and Social Care Board and the BMA.  After thorough scrutiny of the issues, particularly those regarding the arrangements for primary care, the Committee agreed in December 2013 that it was content with the Department's policy proposals for how it intends to implement the EU directive.  We subsequently approved the statutory rules necessary to bring that into effect.

Photo of Paul Frew Paul Frew DUP

I welcome the opportunity to take part in today's debate.  The Committee for Agriculture and Rural Development has a very distinct role in European scrutiny and undertakes a considerable volume of work around EU issues.  Many of the statutory rules that we consider on a weekly basis have their origins in Brussels, as animal and plant health issues are largely regulated by EU law.  At the Committee's meeting this week, we will have three statutory rules that have their origins in EU legislation.  All of them impact on our agrifood industry, so it is vital that we keep on top of the changes and tweaks in law that come from Europe.

However, it is fair to say that the Committee's attention is focused on how the Department will implement the recent reform of the common agricultural policy (CAP) and, then, the common fisheries policy (CFP).  Those are major EU policy areas and account for some 40% of the entire EU budget.  They have recently gone through a major policy shift, with a major shift in funding also.  How that policy shift will play out in Northern Ireland, and how the EU funding will be allocated, is of major concern for not just the Committee but many MLAs.  After all, a subsidy of €300 million a year into our rural and farming communities is a substantial amount.  Changes to the format and the criteria for distribution, which are being dictated by Brussels, if not managed properly by DARD and the Agriculture Minister, could badly affect the agrifood industry here.

The year 2013 brought two new issues with an EU dimension for the Committee to consider:  tree disease and the horse meat scandal.  The Committee discussed those issues during a visit to Brussels, as well as CAP and CFP reform.  The horse meat scandal was, and is, a very worrying aspect to our agriculture industry and our reputation for high-quality local meat.  Although the Committee has received briefings from the Department and the Food Standards Agency, that issue has yet to be fully reported on by the relevant agencies.  The Committee is in agreement that an EU-wide passport database for horses would assist in making the system fit for purpose and help to restore some faith in our meat industry.

We also watch with interest how the EU Commission and Parliament begin to grapple with the big issues of food fraud, food security and food labelling on an EU-wide basis.  We know that, eventually, that will lead to new policy and then new law.  Further EU regulation on those areas will soon be coming down the line.  We will be relying on our MEPs to ensure that whatever regulation arrives is proportionate for Northern Ireland.

The Committee has been watching the progress of the proposals for amending EU legislation on plant health and looks forward to hearing the outcome on what is a very important issue for us.  On that issue, it is important that we look at the speed at which the cogs turn in the EU.  If you look at the likes of plant health and tree disease — something that can be picked up in the environment and travel across many member states very, very quickly — you will see that it is very clear that the EU has not the means, speed or agility to deal with that serious issue quickly enough.  That leaves us all susceptible and defenseless when it comes to some of these diseases.  It is something that the EU must take on board, and it must work quickly and effectively to deal with the issues as they happen, and as they appear.

For 2014, the Committee will continue to focus on CAP, CFP, the Northern Ireland rural development programme 2014-2020 and the single farm payments.  Those are issues that are driven by the EU and which affect the farming industry significantly.  The Committee will persist in its oversight of all the proposals and decisions made by the Department and the Minister, and the red tape from the EU, to ensure a positive outcome for our farmers and rural dwellers.

Photo of Mickey Brady Mickey Brady Sinn Féin 4:00, 7 April 2014

Go raibh maith agat, a LeasCheann Comhairle.  Members are aware of the wide remit of the Committee for Social Development, which reflects that of the Department.  However, it is fair to say that there has not been a great focus on the developments at European level that may potentially impact here.  The Committee has therefore identified a number of European priorities and has made a commitment to ensuring that the Department for Social Development keeps it updated on the Department's activities at European level and the impact of policy and legislative developments at a European level that will have an effect on the work of the Department.

The Committee agreed its European priorities to be as follows:  European regional development fund (ERDF) resources for sustainable urban development; social inclusion and social investment through the European social fund (ESF).  Members know that the European Commission's cohesion policy is to remain an essential element of the next financial package, 2014-2020, and underlines its pivotal role in delivering the Europe 2020 strategy.  The European regional development fund is the single biggest source of EU funding for that purpose.  The proposed regulations relating to the ERDF provide for an increased focus on sustainable urban development.  That includes the potential allocation of a minimum of 5% of ERDF resources for sustainable urban development, the promotion of capacity-building and the adoption of a list of cities for integrated actions where sustainable urban development can be implemented.

Importantly, under proposals in article 7 of the ERDF relating to integrated sustainable urban development, that would also mean a degree of management delegated to urban authority level.  Last year, when the Committee received a briefing from the Department, it was informed that, should that proceed, only Belfast and Derry would be the likely candidates, as they are the hubs of the regional development strategy.  Under article 8 of the ERDF, relating to urban innovative actions, the European Commission has proposed to allocate €330 million over the 2014-2020 period for innovative actions in the field of sustainable urban development to help develop radical solutions to long-term urban problems.  The Committee will look to see how the Department intends to bid for funding, including how it intends to work with partner organisations, such as universities and the private sector.  Should those proposals eventually come to fruition, they will be of continuing importance to the work of the Committee.

Social inclusion is also of key importance to the Committee.  We note that activities of the Peace IV programme will also form part of thematic objective 9 of the draft European territorial cooperation regulation relating to promoting social inclusion and combating poverty.  The Committee will seek updates on the potential for a new investment priority under the Peace programme relating to promoting social and economic stability and promoting cohesion between communities.  Like many of the issues under discussion today, those are cross-cutting, and the Committee for Social Development will seek to work with other Committees to ensure that opportunities to achieve greater social inclusion are maximised.

Also relating to social inclusion, the Committee has a role in scrutinising the Department's work in relation to volunteering.  The Committee has been informed that, as part of its commitment to the Barroso task force, DSD has recently joined the European Volunteer Centre network.  The purpose of joining that is to help the Department maximise its knowledge of, and participation in, key EU-wide volunteering policy and programme developments.  That, of course, may impact on any future strategic thinking in respect of volunteering and, given that the current strategy expires in 2015, the Committee will be keeping a close eye on developments and lessons learned by the Department from its participation in that network that will inform the new strategy.

The Department for Social Development plays a key role, along with DETI, in the development of social enterprises.  The European social fund actively supports the establishment of social enterprises as a source of jobs.  In a recent report to DSD, PwC estimated that social enterprises here employ just over 12,000 people.  Social enterprises also account for over 13,000 volunteers.  Importantly, 77% of social enterprises report that they plan to expand.

The Committee will continue to engage with the Department and the third sector to help develop policies that will enable social enterprises in the third sector to develop new services and markets for communities.  In doing so, the Committee will include consideration of what the Department is doing to ensure that organisations can access the ESF.  The Committee is aware that, to make that a reality, it will be important to develop an appropriate enabling regulatory environment, something which the Committee will pursue with the Department.

In conclusion, identifying and engaging on European issues is important for a number of Committees.  The Committee for Social Development has identified a number of topics for further consideration, some of which, as I have mentioned, are cross-cutting issues.

Photo of Roy Beggs Roy Beggs UUP

The Member's time is up.

Photo of Mickey Brady Mickey Brady Sinn Féin

Those will be factored into our forward work programme, and we will work with the Department and stay focused to ensure that they are given due attention.

Photo of Leslie Cree Leslie Cree UUP

It is absolutely essential that we use the European Union to benefit Northern Ireland.  The European priorities for 2013-14 contain much of interest to Members.  There are four overarching European thematic priorities for 2013-14:  competitiveness and employment; innovation and technology; climate change and energy; and social cohesion.  Key overall objectives for 2013-14 are identified as:  fully realising the opportunities the European Union presents; influencing and shaping future policy; and building our positive role.  There are many fine words about a strong, modern economy that requires a well-educated workforce, with our universities and education system working in partnership with the private sector.  In this Province, we still have a major problem with long-term unemployment and a stubbornly high unemployment rate for our young people.  Our economy is over-reliant on the public sector, and we need to continue the work to rebalance it.  It is the duty of the Executive to maximise their efforts to ensure that Northern Ireland begins to punch well above its weight in Brussels.

Last week, it was revealed in the net fiscal balance report that public spending in Northern Ireland was £9·6 billion higher than the amount raised in taxes in the year 2011-12.  Our deficit, expressed as a percentage of total economic output, stands at 33%, compared with a UK figure of 10%.  Per head, the fiscal deficit is £5,311, compared with a UK figure of £2,133.  I am absolutely convinced that the European Union has a major role to play in helping us to rebalance our economy and address local unemployment.  Just a few weeks ago, an Assembly motion brought by the Ulster Unionist Party highlighted the need for the Assembly and Executive to show more ambition in their dealings with Brussels, particularly in the drawdown of EU funding.  It was revealed during the debate that, for framework programme 7, which is a key business development programme in the EU, on a per capita basis, we requested €35·33, which was broadly similar to Wales.  It is less than half that compared with England, and about a third compared with Scotland.  The Republic of Ireland requested financial contributions of €590 per head of population.  As measured by the requested financial support from FP7, it is 17 times more ambitious than we are.  If the benchmark of €590 per head is correct, we should have been looking for €236 per head, not €35.

The framework programme 7 research and technological project funding period is winding up, but €80 billion is available under the new research and innovation funding package, Horizon 2020.  We must, therefore, ensure that we demonstrate more ambition with regard to Horizon 2020.  I also have concerns that we need to be more ambitious than the Programme for Government commitment to increase the competitive drawdown of European funds.  A figure of 20% during the current Budget period is not ambitious enough.  I understand that we are targeting £100 million, but the Republic is targeting €1·4 billion.  If it is two-and-a-half times our population, that would suggest that our target should be nearer to €500 million, not £100 million.

At the halfway point in the Budget period, £41·3 million had been drawn down, which represents 64% of the target.  Departments are well on track to realising a total drawdown of £64·4 million by the end of March 2015.  The relative ease with which the Executive can meet that target indicates that the bar has been set too low and that a much more ambitious target is required.  The bottom line is that Northern Ireland needs to fully engage with Brussels at all levels to ensure that we can access the various funding streams available.  We must also work to ensure that red tape and bureaucracy are not allowed to impinge on local businesses as they try to compete in the European market.  We need to ensure that any barriers are removed and that we can effectively set up a one-stop shop for those seeking advice about Horizon 2020.  If we achieve that —

Photo of Roy Beggs Roy Beggs UUP

Will the Member draw his remarks to a close?

Photo of Leslie Cree Leslie Cree UUP

— and ally it to a greater ambition, we will be in a position to boost the local economy and use the European Union to deliver positive change for Northern Ireland.

Photo of Basil McCrea Basil McCrea NI21

In preparing for today's debate, I had occasion to look at the Commission's work programme for 2014.  I note that it starts off by saying:

"There is ... no room for complacency.  2014 must be a year of delivery and implementation."

It goes on to say:

"the challenges ... are formidable.  Unemployment rates, particularly among young people, remain at levels that are economically and socially intolerable.  Small businesses — the lifeblood of the European economy — continue to face difficulties obtaining the finance they need to grow and create jobs.  And whilst progress has been made, Europe is still falling short of its ambitions for the single market, in particular in key areas like the digital economy, energy and services."

We should be concentrating on those areas.  I note that, when the Commission talks about "Smart, sustainable and inclusive growth", it says:

"Growth is the key to creating more and better jobs and stronger social cohesion."

In that area, we do not always make the link and say that we have to provide jobs and growth if we are to tackle social unrest.

"Combatting youth unemployment is a key priority:  the unacceptably high levels of youth unemployment are having severe social consequences".

In my opinion, that is the number one priority.

We could look at other issues to do with telecommunications.  There have been some welcome developments on that recently.  However, for the life of me, I cannot understand why, in an integrated market, we do not have a fully integrated telecommunications market.  We ought to do more in that area.

Finally, on the big plays that have to be made, energy is a European strategy.  I note that the:

"Proposals for a 2030 framework for climate and energy will provide the framework for the concrete measures now needed to deliver ambitious and timely reductions in greenhouse gas".

You then get this rider at the end:

"whilst ensuring energy supplies are both secure and affordable."

When I looked at the pack helpfully provided by the Assembly's Research and Information Service, I saw that one of the issues that comes under the Committee for the Environment is a:

"framework to enable safe and secure unconventional hydrocarbon extraction."

That is fracking.  I would be really interested to see what the Committee has to deal with on that issue. 

I also note —

Photo of Anna Lo Anna Lo Alliance

Will the Member give way?

Photo of Anna Lo Anna Lo Alliance

I am happy to answer the question of what the Committee is doing about fracking.  It is really not within the Department's remit to look at licensing.  DOE really deals only with planning applications when any development is ready to start.

Photo of Roy Beggs Roy Beggs UUP

The Member has an extra minute.

Photo of Basil McCrea Basil McCrea NI21

I am grateful to the Chair for providing that information.  It is just that the research pack states that you are going to do that.  Obviously, it is a big issue that will need to be looked at.

There are a number of other issues.  I heard the Chair of the Agriculture Committee discuss the CAP.  That is very important, of course, but it is not the only thing that Europe does.  Seven per cent of the world's population, 22% of GDP and 50% of social policy spending comes from Europe.

We have to look at other areas.  I was struck by the allocation to the Department of Culture, Arts and Leisure.  It has responsibility for:

"Promoting Cultural and Creative Sectors for Growth and Jobs".

I have always found it quite strange that this has been hived off into DCAL and is not part of DETI, because it is such a big part of where we will see growth and jobs.

I also note the inclusion of Horizon 2020 under DCAL.  I would always have assumed that Horizon 2020 is more to do with science, technology and those sorts of investments.  There may be some overlap on that.

The labour mobility package is about harmonising social security payments so that people can move freely across Europe.  Labour force mobility is one of the key issues for regions such as ours, because we get huge swings of people coming into the country and, regrettably, large emigration from this place to other areas.  Although I would not want to talk about any individual in the pursuit of a career, I think that that gives us some challenges that bear scrutiny.  Perhaps the Committee for Employment and Learning will look at that.

The final issue is the Peace and INTERREG programmes.  Of concern is that we have not really implemented as effectively as we might the large amounts of money that have been spent.  I note that, in Peace I from 1995 to 1999, the EU provided some €500 million.  Peace II, which ran from 2000 to 2006, resulted in €609 million of funding.  In 2007, the amount fell dramatically to €225 million, and, in Peace IV, the current programme, there is only €150 million.  That goes to the heart of the challenges facing Northern Ireland.  We seem to have —

Photo of Roy Beggs Roy Beggs UUP 4:15, 7 April 2014

Will the Member draw his remarks to a close?

Photo of Basil McCrea Basil McCrea NI21

We seem to have a problem with our social cohesion and with our young people getting involved, and I think that we need more finance and more support for that important area.

Photo of Daithí McKay Daithí McKay Sinn Féin

To inform its contribution to the report being debated today, the Finance and Personnel Committee considered the European Commission work programme for 2014 and examined the Assembly Research and Information Service analysis of the work programme, which highlighted two particular areas of potential relevance to the DFP remit.  After considering a response from the Department to the Commission’s work programme, the Committee submitted a return, which is incorporated into the report that we are debating today. 

Although the research paper had identified the industrial policy package as potentially relevant to the remit of the Department of Finance and Personnel, there is, in fact, little involvement by the Department in this area, as the lead responsible Department is the Department of Enterprise, Trade and Investment.  That said, the Committee has scrutinised the issue of industrial derating in the past and will continue to monitor developments in this regard.

The second area considered in the research paper as potentially relevant to the Committee's remit is the framework for crisis management and resolution for financial institutions other than banks.  The Committee has received an undertaking that DFP will follow that issue and update the Committee on developments.

More generally, in relation to other European priorities, the Committee takes an active interest in DFP’s role in relation to EU funding programmes.  After sessions being rescheduled on two separate occasions and at very short notice from DFP officials, the Committee looks forward to a forthcoming session with DFP and Special EU Programmes Body (SEUPB) officials on progress with future EU funding programmes as well as outcomes from existing Peace and INTERREG programmes.  In particular, members will be examining areas of improvement identified in the mid-term evaluations for the Peace III and INTERREG IVa programmes.  The Committee has also repeatedly pressed officials on what measures can be taken to simplify and speed up the application process for the next INTERREG programme.

In addition, the Committee will continue to scrutinise the various areas of policy and legislation in the DFP remit that are influenced by European directives and legislation, such as building regulations, civil law and public procurement.  On the latter issue, the Committee will be examining the key changes arising from various new EU procurement directives, including planned measures to increase uptake of procurement opportunities by small and medium-sized enterprises; to improve the social benefit from public contracts; and to support the prompt payment by government bodies and main contractors involved in delivering public contracts.

In the weeks and months ahead, the Committee will, as a matter of course, undertake the scrutiny of a range of other EU-influenced items of business.  At its meeting this week, for example, the Committee is taking evidence from DFP on the European Commission investigation into the state-aid compatibility of the aggregates levy credit scheme here.  As Members will be aware, that is of major concern to the local quarrying industry as it could face a recovery of the aid that it has received under the credit scheme since 2002.

A further example of this type of regular scrutiny of European issues will be the Committee’s examination of the European Investment Bank (EIB) as a source of finance for capital projects.  In particular, the Committee has commissioned research comparing the EIB with other sources of capital finance for the local economy and how other jurisdictions avail themselves of that. 

In conclusion, the report highlights the range and extent of European issues that have a bearing locally and in which the Assembly is engaged.  The report and the debate serve as a useful exercise to collate and prioritise those issues and to encourage continued and focused scrutiny in the year ahead.

Photo of Jim Allister Jim Allister Traditional Unionist Voice

It is indisputable that the EU dictates a large part of our lives.  Indeed, "dictate" is the operative term because we have to remember that the only body in the EU that is even permitted to make a regulatory proposal is the unelected — many would say unelectable — European Commission.  The elected European Parliament cannot initiate legislation.  Oh no, only the unelected Commission can initiate directives and regulations.  Little wonder, then, although directives and regulations pass through something of a filter in what passes for democratic accountability, more often than not, some are totally hare-brained ideas such as the recent happily now-defeated proposition that farmers' trailers should be subject to MOT tests.  Think of that.  Someone on a huge salary sits in Brussels and thinks up the latest crackpot idea, and that is but one of them.

On top of that, the EU dictates vital aspects of our life.  It tells our fishermen where they can fish, when they can fish and what they can fish.  It tells each nation with whom it can trade because, under EU law, a single member state cannot make a trade agreement with another country.  Only the EU itself can make the trade agreements, hence the situation in which, for decades, the EU did not even have a trade agreement — nor were we in the United Kingdom allowed a trade agreement — with our greatest partner, the United States of America.  That is totally controlled by the EU.

We then come to the fact that states just might want to able to help a particular sector in need in its locality.  Oh no, Brussels says, "You shall not do that.  There shall be no state aid."  That is apart from a de minimis level that amounts to very little.  Brussels will decide whether a business that needs assistance should get it.  It will decide whether a sector that is about to be squeezed out can be helped by its own Government.  It is not the local Administration or even the national Government who decide; Brussels will decide whether it will deign to give you authority for such a thing.  That amounts to a stranglehold on a nation.

I heard Ms Lo referring to the energy restraints.  My oh my.  The EU has set such unrealistic and largely unattainable objectives on renewable energy that we now have put upon us the blight of wind farms and are forced to use the most expensive form of energy there is through huge subsidies.  Therefore, no matter the aspect, it seems to me that we have little to be grateful to the European Union for.  You would think, listening to some in the House, that we could not live without the European Union.  I think that countries such as Norway and Switzerland have found that you can live very well without the European Union.

Photo of Mike Nesbitt Mike Nesbitt UUP

Will the Member give way?

Photo of Jim Allister Jim Allister Traditional Unionist Voice

Yes.  I will be glad of the extra minute.

Photo of Mike Nesbitt Mike Nesbitt UUP

I am sure that the Member will be glad of the extra minute.  He mentioned Norway.  Does he agree that, of all the countries on the planet that contribute to the European Union, the one that contributes most per capita is not a member of the EU?  It is, in fact, Norway, which pays for access to the single market.

Photo of Roy Beggs Roy Beggs UUP

Can I remind the Member of and draw him back to the topic of the debate, which is the Assembly Committees' European priorities for 2014?

Photo of Jim Allister Jim Allister Traditional Unionist Voice

I am quite sure that the Chairman of the Committee would not have led me astray.

Norway is in the glorious position of being able to run its own economy as it wishes.  It is able to control its own fishing policy, which I have seen in operation.  Whereas our cod sector is in terminal decline, Norway's is flourishing remarkably.  It is able to exploit its own oil —

Photo of Anna Lo Anna Lo Alliance

Will the Member give way?

Photo of Jim Allister Jim Allister Traditional Unionist Voice

No.

It is able to exploit its own oil reserves and bank the money without any interference from the EU.  There is hardly a country in Europe that would not gladly exchange its position economically with Norway.

I want to deal very briefly with CAP reform, because it is a vital issue and one on which the Executive will have to take critical decisions.  We have a proposition from the Agriculture Minister that Northern Ireland should be treated as a single entity in regard to that.  We have got until 1 August to make our mind up about that.  That is a vital decision, because CAP support, such as it is, must go —

Photo of Roy Beggs Roy Beggs UUP

Would the Member draw his remarks to a close?

Photo of Jim Allister Jim Allister Traditional Unionist Voice

— on keeping agriculture productive and making it more productive.  That means that you cannot therefore just treat the non-productive areas the same as the productive areas.  I trust that that issue will be addressed.

Photo of Chris Lyttle Chris Lyttle Alliance

I am glad to be able to wind on the motion on behalf of the OFMDFM Committee.  The wide range of Members we heard from today illustrates how much European policy impacts on citizens in Northern Ireland and the work that is going on across the Assembly Committees to ensure that the people of Northern Ireland get the greatest benefit from it.

The OFMDFM Committee report, with contributions from all Assembly Committees, shows the wide range of issues that we are dealing with, including those that have been worked on and those that will be worked on in the year ahead.

The Chair of the OFMDFM Committee set out the priorities of the Committee on gender equality, human rights compliance and taking a focused look at the impact of the Barroso task force on the lives of people in Northern Ireland.  He also mentioned the importance of Peace IV to peace building in Northern Ireland, and it is my understanding that that programme sets its priorities in Northern Ireland as youth employment, education and entrepreneurship.  We look forward to hearing more about that in the near future, as do many community groups and voluntary groups across Northern Ireland that are somewhat concerned about any gaps between Peace III and Peace IV.  The Chair of the OFMDFM Committee also set out the importance of increasing our drawdown of competitive funding and of keeping an eye on how Roma integration will be achieved in a wider racial equality strategy from OFMDFM.

Stephen Moutray spoke of the importance of CAP reform and agricultural policy in general to the agricultural community in Northern Ireland.  Oliver McMullan backed that up, talking about how important getting the single farm payment right, accurate recording and faster payments are to farmers in Northern Ireland.  He also talked about how important the rural development programme is to rural communities in general in Northern Ireland.

Colum Eastwood said that we needed to see more positive engagement with Europe, that that is what people in Northern Ireland want to see and that that is what businesses in Northern Ireland want to see.  After an intervention from Anna Lo, he supported the need for Horizon 2020 to be much more ambitious.  It is my understanding that the Department for Employment and Learning and the Department of Enterprise, Trade and Investment have established a Northern Ireland contact point network to assist in bids regarding Horizon 2020 and that that is up and running.  We are also hopefully going to see ERASMUS, which is a student exchange programme, expand to cover vocational training and apprenticeship opportunities in addition to academic study.  We hope that that will be a positive development for employment in Northern Ireland.

The European social fund for 2014-2020 should be bigger than the 2007-2014 fund, and many Members spoke about the importance of that fund to community cohesion and community development in Northern Ireland.

Anna Lo, the Chairperson of the Environment Committee, spoke about the importance of the climate and energy framework and of engaging with Europe to ensure that we respond adequately to the challenge of climate change and, indeed, to greenhouse gas reduction.  Ms Lo also mentioned the important of engaging with the waste management strategy to ensure that we achieve recycling targets.  She also said that the Environment Committee would closely monitor proposals to diversify energy supply to improve competitiveness.

George Robinson from the OFMDFM Committee again emphasised the importance of the European Union to agriculture in Northern Ireland and spoke of the importance of engaging with public transport policy for our rural areas.

Maeve McLaughlin, the Chairperson of the Health Committee, updated the House on ways that we could reduce waiting times for elective care by examining policy utilised by other European countries.

Paul Frew, the Chairperson of the Agriculture  and Rural Development Committee, spoke of the distinct role that that Committee has in the Assembly and the large volume of EU law that it engages with to ensure that our agrifood industry is as competitive as possible.  He also spoke of the importance of supporting and protecting the reputation that our farmers have for delivering high-quality local meat and, indeed, of engaging with the food fraud, security and labelling policy being set out by Europe.  He would like to see a quicker, more agile decision-making process in Europe in relation to urgent and emerging situations, and I trust that  the Agriculture Committee will advocate for that on behalf of the people in Northern Ireland.

Mickey Brady of the Social Development Committee set out the importance of European policy to social inclusion and social investment in Northern Ireland.  He also spoke about how the Social Development Committee will engage with the Peace IV programme to ensure that we combat poverty and increase social and economic stability in Northern Ireland.  He touched on the importance of volunteering in a European setting and spoke of how European policy on volunteering can be used to increased volunteering in Northern Ireland.

Leslie Cree set out some interesting figures about our competitiveness in the drawdown of funding from the European Union and said that it was essential that we improve our productivity in relation to that.  He also said that it was vital for universities to work in partnership with business in the European context in order to rebalance our economy.  He said that Northern Ireland needed to fully engage with Brussels and that we needed to increase funds, reduce red tape and ensure that we have one-stop shop assistance for universities and businesses to access the significant amount of money available through Horizon 2020.

Mr Basil McCrea spoke about the EU Commission's work programme and identified some important issues that have been prioritised in that work programme that cross over with key issues in Northern Ireland:  youth employment, SME financing; and developing our digital economy and energy and services sectors.  In agreement with the European Union, he said that we needed to see smart, sustainable and inclusive growth if we were to promote social cohesion in Northern Ireland.

Mr McKay, the Chairperson of the Finance Committee, focused on the key issues of industrial derating, crisis management for financial institutions and some interesting new work that will be done on improving public procurement directives for SME uptake, social benefit and prompt payment in Northern Ireland. 

Jim Allister, the resident Nigel Farage of the Northern Ireland Assembly, spoke about EU diktats.  However, he stressed the importance of —

Photo of Basil McCrea Basil McCrea NI21

Can I just check for clarity whether the Member meant to refer to Mr McNarry as Nigel Farage, or was he really talking about Mr Allister?

Photo of Chris Lyttle Chris Lyttle Alliance

I think you could probably take your pick from both, Mr McCrea.

Mr Allister emphasised the importance of a sound trade agreement with the US, which is an important issue for the European Union to work on as we go forward.  He referenced policy from Norway and Switzerland, and the Chairperson of the OFMDFM Committee made some useful points in response to that issue.

(Mr Principal Deputy Speaker [Mr Mitchel McLaughlin] in the Chair)

As the Chairperson of the OFMDFM Committee outlined, although the OFMDFM Committee has a lead on European affairs, it is absolutely vital that all Assembly Committees hold the respective Departments and Ministers to account in scrutinising what action they are taking to influence European policy in a positive way for people in Northern Ireland.  The European institutions must be made accessible to citizens in Northern Ireland.  We have access to those institutions and decision-makers, not least through the representation of our MEPs and members of the Committee of the Regions and the European Economic and Social Committee.  There are numerous other Northern Ireland interest groups actively working on European issues.  The Committees of the Assembly have a vital role to play in ensuring that the voices of people in Northern Ireland are heard and are taken into account in Brussels.  It is only by effective engagement on the key priority issues that we will be able to ensure that the business of Brussels is of benefit to the people of Northern Ireland.

In closing, I thank all Members who participated in the debate, the Assembly Committees for their work in contributing to the report, the Members of the European Parliament, the Northern Ireland Local Government Association and the European Economic and Social Committee, which have all made valuable contributions to the work of the report.  I hope that the report and the debate today continue to contribute to the momentum of the engagement of the Assembly in European affairs.  I wish all the Assembly Committees well in their work programmes for the year ahead on European issues.  I commend the report to the House.

Question put and agreed to.

Resolved:

That this Assembly notes the report of the Committee for the Office of the First Minister and deputy First Minister (NIA 59/11-15) on Assembly Committees European Priorities for 2014.