Manufacturing Strategy for Northern Ireland

Opposition Business – in the Northern Ireland Assembly at 12:30 pm on 6 June 2016.

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Photo of Robin Newton Robin Newton Speaker 12:30, 6 June 2016

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

I call on Mr Stevie Aiken to move the motion. As this is Mr Aiken's first opportunity to speak as a private Member, I remind the House that it is the convention that a maiden speech is made without interruption. However, if it becomes overly controversial, he may not be granted that privilege.

Photo of Steve Aiken Steve Aiken UUP

I beg to move

That this Assembly calls on the Minister for the Economy to commission a manufacturing strategy for Northern Ireland.

Thank you, Mr Speaker, and, just for the record and so that my mother will not be upset about it, it is Mr Stephen Aiken. I do not think that I have been called Stevie for a very long time.

In moving the motion in this Assembly calling on the Minister for the Economy to commission a manufacturing strategy for Northern Ireland, the first thing that I would like to say is that this is a historic occasion, because we believe that this is the first official Opposition debate in this Chamber since 1972.

Overall, we welcome the Minister's appointment, and we, as the Opposition, will offer constructive and supportive scrutiny to help build an effective strategy for our manufacturing sector. What we want is to see how we can grow it from its present level over the next 10 years. As you are well aware, manufacturing generates annual sales approaching £20 billion, directly employs 85,000, supports production and the employment of over 214,000 in the wider supply chain and creates well-paid jobs and strong communities in every constituency across Northern Ireland. We will provide constructive support for the Minister, providing that policies are put in place to create a shift from a public-sector-led to a strong, stable and flexible private sector economy that has Northern Ireland manufacturing at its core.

It is good to see that a Department for the Economy has been created — a long-standing objective of our party — a Department that should be the driving force for Northern Ireland going forward. The need has never been greater, with our economy growing at a less than impressive gross valued added (GVA) level over the years from 2010 to 2014 of 10·2%, when the UK average was 16%. Indeed, Northern Ireland has the lowest GVA growth of any UK region, and it is considerably less than the Republic of Ireland. If we look further back, to 2009, we find that, while the UK's GDP as a whole has increased by 13·9%, that of Northern Ireland has grown by only 3·1%, which, as I am sure the Minister would agree, is a very poor outcome.

What are we going to do about it? We cannot just rely on the current structure, which has not shown the innovation, adaptability and agility that has been shown in other regions of the United Kingdom — for instance, in the Northern Powerhouse around Manchester — or even in the Republic of Ireland.

It is disappointing that, in the draft Programme for Government framework, which has three outcomes, 10 indicators and 11 measures all about the economy, there are no real specific ideas for building this new economy. It is also concerning, after we have fought hard to achieve the introduction of a lower rate of corporation tax at 12·5%, that this central idea is not even mentioned in outcome 1, where the draft Programme for Government talks about how we can prosper through a:

"strong, competitive, regionally balanced economy".

We, the Opposition, as do Northern Ireland businesses, as represented by the CBI, Manufacturing Northern Ireland, the Northern Ireland Chamber of Commerce and the Institute of Directors, Unite and other unions — above all by the companies themselves — need to see a proper, joined-up manufacturing strategy that puts backs towards our prosperity and future.

We should be setting targets. We should be making 20% of our GDP from manufacturing, rather than the current level of 14%. This should be a hard, measurable target. We should benchmark the success or failure of our manufacturing strategy against other UK regions, such as Scotland, which is, of course, where the Programme for Government framework is sourced from, Wales and the Northern Powerhouse and against the Republic of Ireland. Maybe this could form the basis of an annual health check on all our Departments that would allow the people of Northern Ireland to see how our Government are over- or underperforming.

We would also welcome from the Minister a robust championing and defence of a series of pro-manufacturing approaches that would be transformative of our economy, especially around taxation, keeping business rates low, energy costs, maintaining security of supply, extended enterprise zones, improving infrastructure and urgently addressing the shortage of skills that our innovative companies are facing. We suggest that we need a couple of specific measures, in particular, a coherent and stable tax structure built around the 12·5% rate of corporation tax and delivered on time. We should retain the 30% cap rate on business rates, for not just the short but the long term. We should also use enterprise zone facilities, which I know the First Minister was not happy with. We need those in areas where Northern Ireland is particularly challenged, and we need to grow in those in what we need to do.

We also need to do something about our rather paltry research and development. We currently put only about a third of the UK total of research and development into what we do as we go forward. We need to increase that to the average UK level, and what we are going to call for is a fund of approximately £1 billion over the next 20 years, which needs to be linked to business, universities and industry. However, we are very conscious of making unrealistic demands on an already taut budget. What we can do is closely examine how some of the money is spent on the underperforming quangos around them, of which there is a plethora. We need to divert funds from those and other areas so that we can support a proper Northern Ireland regional development fund, and Europe could be critical in doing this and helping us as we go forward.

All of this needs to be backed up by some more practical things. We need to address the high cost of energy for our manufacturing and agribusiness companies. But we must also rate that our energy sector requires considerable investment, with an aging grid that is not capable of dealing with the demands of low-carbon generation. It needs functioning North/South and east-west interconnectors to connect us to the growing all-island energy market and a regulator that delivers energy on a median all-island cost. We have some of the highest energy costs in Europe, but we need to be able to match others. Most of all, we need to match the energy costs in the Republic of Ireland, which are, in some places, for the major manufacturing companies, 16% to 17% less than ours. We must question how, in an all-island energy market, our Utility Regulation mechanism appears to deliver very little. There are some fundamental questions there that need to be asked.

We also need to address the skills shortage and investment in higher education and further education, but we need to do it by listening to what our businesses need as well as by promoting our previously mentioned research and development in what we are trying to do. We also need to deal with other business costs, such as sea and air transport, and ask why it is five times more expensive to cross the North Channel than it is to cross the English Channel. It is ridiculous to note that, over a period of 25 years, it would probably be cheaper to build a tunnel under the North Channel than it would be to continue with these high costs.

Equally, air passenger duty (APD) is a tax on business and should be addressed urgently. Infrastructure needs to be improved — roads infrastructure, in particular. Broadband has, in some parts of Northern Ireland, become a joke and needs to be sorted out. Again, we mentioned a smart grid, and if we are to have a much more flexible and innovative economy, we need to make sure that the fundamentals of that are available. We need proper road links to our major logistical hubs, and we need to do something about the other levels of infrastructure that we have.

Penultimately, we need to change the mindset: manufacturing is not in a sunset period. Our 3,820 manufacturers, at any scale, can drive our future. Achieving a 20% manufacturing sector and generating an additional 100,000 jobs is achievable, but only if we put it at the centre of making Northern Ireland work. For that, we need vision, strategy and willingness from us all. To make that happen — it is too important to be delivered just by our government Departments — we would welcome the Minister creating a fully inclusive Northern Ireland strategic manufacturing board, as happens in other areas of the United Kingdom and Europe, to bring together all of the key partners to make it work and to work with our stakeholders to rally to make Northern Ireland one of the best places for manufacturing jobs as we go forward.

Before I ask the Minister to respond to our calls for commissioning a proper manufacturing strategy for Northern Ireland, I think we need to address what is probably the biggest single issue affecting the future of business in Northern Ireland. We are currently planning to have a referendum in the United Kingdom on our future membership of the EU. Listening to the clarion calls from the business community and from many of our business-led organisations, one of the most important things that we is see at the moment is a lack of certainty — there is fear about the future; there are concerns about North/South and east-west trade in particular; and there are concerns about what our companies will face in the future. I think it is remarkable that if we look at the parties in the Chamber, the majority of them will support the United Kingdom remaining within the EU, and I would like the Minister to make a statement on behalf of the Government, which includes his party and another party, about that support. We should be going to the people of Northern Ireland and saying that we should remain in the EU because that is indeed the best place for us in the future and the best place for us to deliver a proper manufacturing strategy.

Photo of Gordon Lyons Gordon Lyons DUP

I beg to move

Leave out all after "Economy" and insert "to include the development of the manufacturing sector in the Executive’s new economic strategy.".

First, I congratulate the Member for South Antrim on his maiden speech; I look forward to working with him on the Economy Committee and on these issues as we go forward. I also congratulate the Minister on his appointment. We are very pleased that he is in post, very pleased that we have the Department for the Economy, and we want to wish him well for the future. I also want to note that I think it is important that this debate has been on the issue of manufacturing.

I welcome that focus. It is important that we are bringing these issues to the fore, debating them, talking about them and sending the message that they are issues that we are concerned about and that need to be addressed.

We have tabled an amendment to the motion. Although we welcome the focus on manufacturing, we are seeking the approval of the House to amend the motion. Before I come on to that, it would be useful for us to have a look at manufacturing in Northern Ireland and at the current state of play.

There is no doubt that there have been an awful lot of difficulties for manufacturing over the last number of years. That has had impact on our constituents. In my constituency, many people worked in Ballymena — and I am thinking of Michelin, JTI and the job losses that have taken place. It is important that we recognise that we are not just talking about figures; these are real people who have lost their jobs and find themselves in a very difficult situation. We should be doing all in our power to sustain the jobs that we have in Northern Ireland and create more.

There is no doubt that there are many challenges that the manufacturing sector is facing. However, it is not an insignificant sector or an insignificant part of our economy. As Mr Aiken, the Member for South Antrim, said, it is responsible for 85,000 jobs directly and supports over 100,000 more. It is responsible for £213 million in export sales and hundreds of millions of pounds of foreign direct investment. Manufacturing is also responsible for some of our best paid and most highly skilled jobs in Northern Ireland and, although there have been challenges and difficult times, we should welcome the fact that there has been growth in the sector over recent years. Indeed, we have seen thousands of extra jobs added in the manufacturing sector since the downturn. As well as having growth, we are growing at a faster rate than the rest of the UK despite having a larger than average manufacturing sector in comparison with the rest of the United Kingdom. So although the picture for manufacturing is challenging, it is not a bleak picture or one without hope.

We have tabled the amendment because we are committed, as a party, to creating more and better jobs in Northern Ireland. We welcome that we will have the opportunity to have another debate on the economy tomorrow and talk further about plans for an economic strategy. That will require work, not only in manufacturing but across the whole economy and whole sectors. As a result, we are focusing on a new and refocused economic strategy to deliver growth for the whole economy. Manufacturing should be at the centre of that, and we hope that it will be.

In the amendment, why are we asking for, instead of just a single manufacturing strategy, —

Photo of Gordon Lyons Gordon Lyons DUP

I will give way on that point.

Photo of Paul Frew Paul Frew DUP

I thank the Member for giving way. He is right to talk about a holistic approach. I heard the previous speaker talking about infrastructure. Does the Member realise that infrastructure has been heavily damaged in Northern Ireland by cuts from the Tory party, a party that was wedded to the UUP for many years? Does the Member, like me, want to know where the UUP stands on the European Union and whether they are in or out? At the minute, we do not really know where they stand.

Photo of Robin Newton Robin Newton Speaker

The Member has an extra minute.

Photo of Gordon Lyons Gordon Lyons DUP

I look forward to Mr Swann winding up the debate. He will be able to answer those questions. Perhaps the Ulster Unionist Party is not united on the issue; perhaps, some people have seen the light and have realised that we would be better off out of the European Union. I will not speak for the Ulster Unionist Party —

Photo of Robin Swann Robin Swann UUP

That makes a change.

[Laughter.]

Photo of Gordon Lyons Gordon Lyons DUP

I will let Mr Swann answer that question, and no doubt the Chamber will be full when he makes his remarks so that we can get some clarity on the issue.

We want to see growth in the whole economy and in manufacturing. Growth in the whole economy will help manufacturing as well. That is why we want to see an economic strategy for all of Northern Ireland and across all sectors. Of course, there is overlap between different sectors and different businesses within our economy. Some of the issues that people raise are rates, infrastructure, skills and education, energy, competitiveness and investment. All those issues come together. Although not all businesses or companies have issues with all the problems they face, together we need to address them all. As my colleague Mr Frew said, perhaps we need a more holistic approach. The best way in which we can deliver for Northern Ireland on those issues is through one strategy.

Of course, the challenges that face manufacturing are not unique to manufacturing. That does not mean that we will have an absence — I hope that we will not — of help, targets or actions for manufacturing. You will all be avid readers of the DUP manifesto for the 2016 Assembly election, which was endorsed by the people of Northern Ireland and in which we made it very clear that we want manufacturing to be put at the very heart of the economic strategy. It is also useful for us, as Back-Benchers and as opposition parties, to have that one strategy; we can hold the Government to account by saying, "Here's one single document. Here's what the Executive have said that they were going to do". It is useful to have that codified in one document.

I hope that I have been able to outline why we seek the support of the House for the amendment. As we move forward, there are steps that need to be taken. Mr Aiken rightly outlined some of the things that we want to happen. We hope that there will be a focus on issues such as skills. As we move forward, it is hugely important that we have our people trained, educated and with the right skills for the jobs that are coming along, especially in light of the devolution of corporation tax powers, which will be hugely important for Northern Ireland. There is the potential to create thousands of jobs. I know that not everybody agrees with what we have done about the devolution of corporation tax; I think that, a few years ago, the Ulster Unionist Party said that it was time to move on from the issue, and it was time for plan B. I am glad that we stuck to plan A and have the devolution of corporation tax. We not only have the power devolved but have set a date and a rate. That is very important.

We also need to focus on energy, which is a massive issue not only for those in manufacturing but for those in other businesses. We need to look at that to see how we can have cheaper energy than what we have at the minute and how we can provide help to industry and businesses. Infrastructure has been mentioned, as has the need for a proper infrastructure to be in place.

I hope that I have been able to outline to the House the reasons for our amendment. We look forward to working with other parties in the Assembly to bring forward an economic strategy that can deliver real tangible results for the people of Northern Ireland and create a more prosperous future for us all.

Photo of Conor Murphy Conor Murphy Sinn Féin

I am delighted, as Chairperson of the Economy Committee, to participate in the debate, which was tabled by the Deputy Chair. While I am speaking as the Chair of the Committee, Members will be aware that we have met only once, so we have not had the opportunity to discuss a potential manufacturing strategy for the North or what such a strategy should look like. However, speaking on behalf of the Committee, I assure the House that we will debate fully and will not be found wanting when it comes to listening to stakeholders, discussing among ourselves and providing ideas to the Minister for such a strategy to be brought forward. It might have been better if we had had some of that discussion before today's debate, but, that said, I am sure that today's contributions will feed into the Committee's discussion. We will proactively look at providing a pathway that not only supports our existing manufacturing industries but seeks to develop new industries.

I do not think that anyone here is naive enough to assume that we can develop a strategy for the North that ignores the realities of the global economy and the balances and links between our economy and that of the South, Britain and the EU. However, we as Members, particularly those whose constituencies were affected, are aware of the announcements of large-scale job losses at the likes of Michelin, Gallaher's, Bombardier, Seagate and others, and, of course, everyone shares the view that we cannot afford to lose those types of skilled jobs.

I will advocate that the Committee take a measured view of the potential benefits of a dedicated manufacturing strategy for the North and what it might contain. Should there be consensus on such a strategy, the Committee will want to ensure that it is the right fit for us here and not simply imported from elsewhere. I suggest that the Committee will want to look at what disadvantages or additional cost burdens — Members who spoke previously mentioned some of those — we face that competitors in other regions do not and how those might be best offset through the work of a strategy and indeed the Executive. The Committee will have to consider whether our job promotion model facilitates the development of manufacturing jobs here. Additionally, we must consider whether jobs in manufacturing may be more secure in the long term than jobs in, for instance, high-tech or creative industries and whether we are promoting jobs strategically over a range of sectors.

At the Committee's first meeting last week, the issue of energy costs was raised, and, as I said, it has been mentioned by the Members who spoke previously here. Clearly, there is a particular concern for 20 or 30 of our largest manufacturers. We must also consider, as mentioned, how the proposed lowering of our corporation tax rate in 2018 will impact the situation for manufacturers. The development of a specific manufacturing strategy for the North may require a fundamental redesign of Invest NI. These are all questions that must be considered. The Committee would obviously be a key player in any process of developing such a strategy, and I know from listening to Committee members last Wednesday that we will not be backward about bringing ideas to the table.

It would be unwise to engage in a hastily developed strategy simply to respond to the large-scale job losses that we have had. However, quite clearly, as the amendment suggests, any such manufacturing strategy — listening to the contribution of the Member who moved the motion, I think that he would probably accept this — must be located firmly in an economic strategy that is located firmly in the broader Programme for Government and that that is aligned with a Budget that can deliver on such a strategy. I think that that is the logical way to go forward.

Speaking on my own behalf, a Cheann Comhairle, I want any strategy that promotes, supports and encourages new manufacturing industries to be one that is regionally balanced as well. The need for regional balance across the Six Counties is referred to in the Programme for Government framework document that has gone out. Clearly, developing such a strategy is not simply a matter for us here but, given the way in which the Programme for Government itself has been designed — it will be rolled out over the autumn — this is a matter on which we need engagement with all stakeholders. People in the manufacturing industries and the manufacturing trade unions, who are at the coalface of these industries, need to be part of developing such a strategy. It should be done only on the basis of feedback from across all those sectors and consideration of the bigger issues facing manufacturing that discourage investment and job creation. It may be within our gift to try to assist in a greater spread of job creation across the manufacturing industries. Taking all those matters into account —

Photo of Robin Newton Robin Newton Speaker

I ask the Member to conclude his remarks.

Photo of Conor Murphy Conor Murphy Sinn Féin

— I believe that we can come up with a strategy that is located in the economic strategy and backed by a Budget through the Programme for Government.

Photo of Robin Newton Robin Newton Speaker

As this is Sinead Bradley's first opportunity to speak as a private Member, I remind the House that it is the convention that the speech is made without interruption. I remind the Member that that may be forfeited, of course, if she becomes ultra-controversial.

Photo of Sinéad Bradley Sinéad Bradley Social Democratic and Labour Party

I will attempt not to, Mr Speaker. Thank you very much. As you said, it is my maiden speech to the House. I would like to direct my first comments to thanking the people of South Down, who have given me the privilege of being here and representing them. It is a great honour for me to add my name to the list of SDLP representatives who have served the people of South Down, namely, the late Eddie McGrady; my father, PJ Bradley; Eamonn O'Neill; Margaret Ritchie MP; and, in the last mandate, Karen McKevitt and Seán Rogers. Like each of those former Members, I will endeavour to make sure that South Down is very well represented in the House, and I look forward to working with others for the betterment of the people of Northern Ireland.

However, I share with you openly my hope that this chapter of politics in Northern Ireland will be remembered in South Down as the time when the Narrow Water bridge was finally delivered. Nothing short of that would bring satisfactory closure to the lifetime's political work that my father, P J Bradley, put into that project.

I move to the business in front of us. I welcome the opportunity to contribute to the debate on the need to develop a manufacturing strategy for Northern Ireland. Many base factors are essential for a balanced growth of all sectors across our economy. Those include things that have already been mentioned, such as access to a healthy and skilled workforce, the development of reliable and competitive sources of energy, and infrastructure etc. No doubt there will be plenty of opportunities to discuss in detail many of those issues in an overarching economic agenda delivered for Northern Ireland.

This motion, however, presents us with an opportunity to pay particular focus on one sector in that economic offering: manufacturing. It is well documented that the manufacturing sector in Northern Ireland has suffered a number of blows during the past 12 months. Some Members have already mentioned the loss of more than 1,000 jobs from Bombardier, and there have been similar cuts with Michelin, JTI Gallaher and, lately, Seagate.

Manufacturing NI recently warned that more than 6,000 jobs could be lost across the sector over the next decade, due to advances in technology. Despite that, manufacturing continues to play a significant role in our overall economy. Many headline statistics can be found to illustrate just how significant it is. In my constituency, South Down, major employers such as Bradfor Limited, MJM Group and B/E Aerospace are but a few of the key manufacturing businesses supporting the economy. In Northern Ireland, manufacturing represents 13% to 14% of GDP. The SDLP shares the manufacturing sector's belief that it is possible and necessary for the Executive to work with the sector to increase that contribution to 20% of GDP. Manufacturing NI says that this would be possible with, and I quote:

"the implementation of a manufacturing strategy, the establishment of a target on competitive energy prices, continued stability on rates and a raising of ambition".

The amendment sadly does not fill me with confidence that ambition has been raised. Make no mistake: this debate has the potential to represent a pivotal moment in the future direction of manufacturing in Northern Ireland. We see an opportunity to create a focused strategy that has the potential to navigate specific barriers to growth in the sector and help realise that desirable 20% of GDP. At a time when Europe openly seeks to reindustrialise, Members have yet to grasp the significance of needing a specific manufacturing strategy. I find it regrettable that, through my maiden speech, I have to try to convince others that a real need for a dedicated manufacturing strategy exists. I would have much preferred my contribution to have focused on the ambitions of that strategy.

Photo of Robin Newton Robin Newton Speaker 1:00, 6 June 2016

I ask the Member to conclude her remarks.

Photo of Sinéad Bradley Sinéad Bradley Social Democratic and Labour Party

The Northern Ireland Executive must formulate and implement a manufacturing strategy, for which the industry has been calling for more than a year.

Photo of Stephen Farry Stephen Farry Alliance

I congratulate Sinead Bradley on her maiden speech. I have no doubt that she will follow in the footsteps of her predecessors in giving a very passionate voice to the people of South Down. I also pass on my congratulations to Mr Aiken on his maiden speech, the Minister on his appointment and, obviously, you, Mr Speaker, on your appointment as well.

[Laughter.]

That is the protocol out of the way.

In any discussion on manufacturing, we must bear in mind that we meet with the referendum barely weeks ahead of us. That colours anything that is said in the Chamber about manufacturing.

It is clearly in the interest of Northern Ireland that we remain part of the European Union, particularly for the manufacturing sector, which already depends very much on exports and access to international markets for its current level of activity. If we are to follow through on the laudable objectives of increasing the share of our economy for manufacturing, it is only through exports that that will be realised. Being part of Europe is absolutely fundamental to the future of manufacturing here.

It is also worth taking a moment to think about exactly what we will be doing in terms of manufacturing. It is important that this does not become an issue of the precise architecture of how strategies fit together but is more about the commitments that people will be making to turn those into reality. I also pass on my congratulations to the Ulster Unionist Party on its new-found appreciation of the value of strategies. As someone who listened in the past mandate to them bemoaning yet another strategy and demanding action, I note that finally they have recognised that a strategy is useful for crystallising visions, aims and objectives and for setting out the action points that will be taken and, crucially, the resourcing that will be set aside against those.

Indeed, while Mr Aiken read out a very important list of initiatives that could be taken to improve manufacturing, it is important that we are also mindful of the resources required to turn that into a reality. The only commitment that I heard to new resources was some minor tinkering with quangos. Even the abolition of quangos does not produce a huge amount of additional resource, because the functions of quangos still have to be addressed elsewhere in the system. It is important that, when we talk about the steps that are required, we put in place the resources to ensure that they come forward. If we are talking today about this historic moment of opposition and even constructive opposition, that is not just about being an Opposition with a nice smile; it is about having a clear alternative and ensuring that it is feasible and can be properly resourced.

I recognise that manufacturing in Northern Ireland is going through challenging times. There have been a lot of negative headlines and bad news stories in particular over the past 12 months. At the same time, it is important that we recognise that, while there is serious scope for growth, we have a healthy situation and employment in manufacturing is at a level exceeding the figures as far back as 2008. We have many strengths, and we are seeing an evolution of our manufacturing sector or sectors in a move to more high-value-added jobs. That involves some bad news at the same time as we are having good news about new jobs being created.

In terms of the architecture itself, I see the choice between the motion and the amendment as being a false binary choice. It is important that we recognise that manufacturing must be central to any new or refreshed economic strategy, but there may well be scope for doing additional and more detailed work outside the very particular confines of the economic strategy. That strategy will make references to other strategies — for example, the current skills strategy or the STEM strategy. There are a lot of particular issues around skills. When we look to manufacturing, we see a range of interventions in particular subsections of manufacturing, whether it is life sciences or IT. Indeed, Invest NI has a number of initiatives in that regard already.

It is also important that we recognise that manufacturing is very diverse. It ranges from things like life sciences through to plastics and heavy engineering. There is also an ongoing debate as to whether agrifood is part of manufacturing: some people count it as part of manufacturing, and some do not. Of course, we already have a separate strategy there, Going for Growth. It is important that we have that proper, rounded discussion with the business community and particularly those in manufacturing as to how best we can serve their interests and keep an open mind as to what the best set of structures will be in that regard. I regard this as being a false choice, because I believe that there is scope for us to do something that is particularly focused on manufacturing in the broadest sense.

Photo of Robin Newton Robin Newton Speaker

I ask the Member to conclude his remarks.

Photo of Stephen Farry Stephen Farry Alliance

I accept that we have to recognise that there will be particular substrategies plus the overarching economic strategy.

Photo of Mervyn Storey Mervyn Storey DUP

Regrettably, I cannot stand here today and say that this is my maiden speech, as I have been here since 2003. However, after all those years, we still have in Northern Ireland much that we need to be proud of. It disappoints me that, when I come to the House — I have said this repeatedly in previous debates — it seems as though we always want to concentrate on the negatives. Of course, we now have a new Opposition; well, one of four, five, six or seven. I am not sure how many leaders of the Opposition there are now.

It is time that the Assembly — I advise, if they would be so kind to take the advice, the official Opposition or whoever is in that corner to do this — actually talked up Northern Ireland. Let us remember that, in our manufacturing, we have 214,000 direct and supported jobs. That is one in four of all jobs in the economy. We have £9·9 billion total GVA contribution to GDP, which is around 30% of the economy. Productivity is at £55,700, which is 38% higher than the Northern Ireland average with an advanced manufacturing contribution of 27% more. Those are the figures from Manufacturing Northern Ireland. Yet, when we come to the House, we find it is all about what more we need to do. Not one Member who has spoken today has paid tribute to the manufacturing base that we have or to the 214,000 direct and supported jobs for how they have contributed to the well-being of Northern Ireland.

It is not perfect; there is a huge amount of work still to be done. Coming from North Antrim, I know all too well the impact of job losses. We made reference to that, and I thank Members for the references to the closure of JTI and Michelin and to the pressures that there are, even on our manufacturing companies, such as Wrightbus, as well as to the challenges they face on a day and daily basis to underwrite and secure the long-term future of those jobs. I pay tribute to companies such as Terex, which has recently come into Ballymoney in my constituency. It is a global organisation that needs to continue to be supported; indeed, I recently met with it. I agree with the issue that was raised by the Member and others about the cost of our energy. I have no doubt that my colleague the Minister — I pay tribute to him and wish him well in his new role — will make this an area of priority.

Let me come to an issue that was also raised by the Member. I am glad to be on the Economy Committee with him and look forward to working with him. I have no doubt that we will have our differences, and no doubt we will have our political spats; you would not expect anything else from politicians. However, he raised the coming referendum. I would like the Member to ask the companies in Northern Ireland that have been curtailed, restrained and in many respects set at a disadvantage because of our attachment to the European Union. The regulations are destroying and crippling the advantage that our companies could have in the way in which they provide their services. Indeed, I ask the Deputy Chair of the Committee and the proposer of the motion whether he could speak to his colleague Mr Swann and ask him his view of the issue, because, of course, we know, as has been alluded to, the Ulster Unionist Party, not for the first time on a number of issues, is divided on it. My party is very clear. If you heard my colleague Sammy Wilson on this morning, you would know that we should deal with facts, not fear. Let us deal with the reality of where we are. It is regrettable that our Chancellor came to Northern Ireland today and was about bringing fear to the debate as opposed to bringing the facts to it.

Mr Farry makes a very valid point that it is a diverse environment in which manufacturing operates, and we need to ensure that in our terminology, our policy, our strategy and in everything we do we have covered all the areas appropriately so that we —

Photo of Robin Newton Robin Newton Speaker

I ask the Member to conclude his remarks.

Photo of Mervyn Storey Mervyn Storey DUP

— continue to build on the success and make Northern Ireland the economic powerhouse that, I believe, it can become.

Photo of Thomas Buchanan Thomas Buchanan DUP

I support the amendment before the House. At the outset, I congratulate my colleague Simon Hamilton on his appointment as Minister for the Economy. I wish him every success in his new role, and it is one that I am confident he will use to lead this country forward to even greater success and prosperity. I wish him well.

Northern Ireland is no stranger to being a world leader on the manufacturing stage. This country has been built on a firm foundation of manufacturing, and this small but powerful nation has a rich history in manufacturing, innovation and entrepreneurship.

The foundation has stayed firm through the centuries, and Northern Ireland has thrived in spite of obstacles on a national and, more recently, international scale.

It is fair to say that, in recent years, cuts to the manufacturing sector across Northern Ireland and a climate of instability led to some very challenging circumstances, at times, for the industry. However, I believe that it is now time and the opportunity is here within Northern Ireland for us to rise again to manufacturing excellence and show again our strength on a global scale. In Northern Ireland, we already have the right ingredients in place to ensure that this long-term vision for the future not only comes together but thrives on a global scale.

It is imperative that we as a Government come up with the long-term strategic policies that will empower Northern Ireland to believe in its own strength. Through the mix of all the ingredients, the manufacturing sector will have the tools to become more competitive, globally. It is only through close partnership with industry that we can create a highly skilled workforce that can deal with the dynamic nature of this rapidly changing sector.

However, that is only one strand of the partnership. There must be flexibility within government to bring leaders from across the manufacturing sector to share ideas to ensure that we move in the right direction. That type of collaboration between government, industry and education is the vehicle to steer us towards a more efficient and streamlined manufacturing sector as we move forward.

A vital ingredient in the future economic strategy, which includes manufacturing, is skills. If we are serious about improving the economic prosperity of our region, we need to build on the good work that was started in the former Department for Education and Learning. Investment in science, technology, engineering and maths is crucial in empowering our young people with the skills that we need to build up the manufacturing sector in our country. In conjunction with empowering our young people with appropriate skills, research and development in industry is a fundamental force that will drive the economy forward. For manufacturing to be successful amongst many other sectors, research and development must be at the cutting edge of growth and preparation for the future. We already have two world-class universities with a wealth of knowledge, which is already informed by industry. Skills exchange and sharing between education and industry needs to be the hinge on which our strategy swings to improve and grow our sectors in Northern Ireland.

Foundation industries such as energy and investment by energy companies into long-term projects which meet manufacturing energy needs, are also essential. One of the big areas is broadband provision, which needs to be enhanced. There is very poor broadband provision in some areas of my West Tyrone constituency. That can have a devastating impact on companies, and it is a real factor for businesses that are trying to compete in the global market.

Even with such poor infrastructure, however, we have to say that manufacturing industry continues to strive. Precision engineering is a niche market in the west Tyrone area; it is thriving and growing. That is one example of where the skills and attitudes of businesses in the manufacturing industry can adapt and be —

Photo of Robin Newton Robin Newton Speaker 1:15, 6 June 2016

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

Photo of Thomas Buchanan Thomas Buchanan DUP

— world leaders, despite the difficulties across the sector.

Manufacturing excellence does not necessarily equate to business success. As a Government, we need to be smart and to think more like a business. We must provide strong links within a global market and make it much easier for companies to access those markets and do all in their power to ensure that that happens. I support the amendment.

Photo of Patsy McGlone Patsy McGlone Deputy Speaker

The SDLP supports the motion and its objective. The Minister for the Economy should take the lead in developing a manufacturing strategy, in collaboration with his Executive colleagues. The relevance and importance of that is that it needs to be joined up in a multifaceted way. Economic development is indeed heavily reliant not only on the skills base but on the infrastructural base, which includes roads, water and, as already referred to, the network grid and, crucially, broadband and all that goes with the attendant communications network that is so frequently used now by businesses to help develop and promote their companies.

The introduction of the current Executive's draft Programme for Government framework talks about finalising and agreeing the Programme for Government, the Budget, a refreshed economic strategy, a new investment strategy and a social strategy by the end of 2016. It does not talk about a manufacturing strategy. In fact, manufacturing is noticeable by its absence in the Executive's framework document whilst other sectors, such as tourism, get numerous mentions. This is a mistake. We have had reference to corporation tax, but key to its success or otherwise is of course stability. That stability includes our position within the EU. Earlier, Mr Storey referred to his colleague on 'The Nolan Show' this morning who referred to the likes of Sweden, Norway, France and Switzerland in the context of the preferred option for relationships within these islands and indeed with the EU. It might be helpful if he could place those things in the proper context and factual record and bring the cogency of that argument up to date, rather than talking about how he wished things could be and not how they are.

However, getting back to the key element of the manufacturing strategy, the recently announced job losses at Seagate in Derry, Sirocco Engineering and Michelin, the closure of the JTI plant in Ballymena and the Bombardier statement of intent to reduce its workforce demonstrate the difficulties that the manufacturing sector is facing. Workers' representatives and employers in the manufacturing sector have consistently called for a specific manufacturing strategy to be put in place by the Executive. They may differ on some of the details but they are united in seeking the development of a comprehensive Executive strategy to support and grow the manufacturing sector.

Unite has previously joined with the manufacturing employers' group, Manufacturing NI — I am sure that many of us have already dealt with both groups and worked with them closely in the past — to call on the Northern Ireland Executive to commit to a manufacturing strategy. In November last year, they called for urgent action to protect the manufacturing base and help create the conditions to allow manufacturers to grow. In April this year, the general secretary of the Irish Congress of Trade Unions, Patricia King, called on the incoming Executive to put forward a comprehensive manufacturing strategy to tackle issues such as energy costs, skills development and support for investment, which have been referred to. In March this year, Manufacturing NI published a report by Oxford Economics on the economic contribution of manufacturing here and called on the Executive to raise ambitions and drive reindustrialisation of the economy. Just this week, Manufacturing NI and the Unite union once again joined together in support of the motion that we are debating today. I hope that serious support and deliberation will be given to it.

What is clear from the Oxford Economics report is that, despite the difficulties that I mentioned, the manufacturing sector outperforms every other part of the economy. It delivers 214,000 direct and supported jobs. That is a very positive message; it means one in four of all jobs in the economy. Eighty-five thousand people are directly employed in manufacturing. It is the largest single employment sector in my constituency of Mid Ulster. Manufacturing delivers a £9·9 billion total gross value added contribution to GDP, which is around 30% of the economy. Productivity, at 55,700, is 38% higher than Northern Ireland's average, with advanced manufacturing's contribution being 25% higher still than that. Manufacturing accounts for almost two thirds of all export sales, some £6 billion. Manufacturers invested £254 million —

Photo of Robin Newton Robin Newton Speaker

The Member must conclude his remarks.

Photo of Patsy McGlone Patsy McGlone Deputy Speaker

— in R&D in 2014 and the manufacturing sector attracted £900 million in foreign direct investment between 2010 and 2014. There is clearly room for improvement. I support the motion as it stands.

Photo of Jim Allister Jim Allister Traditional Unionist Voice

Mr Speaker, I trust that you will rebuke the Member for North Belfast, the Chief Whip of Sinn Féin, for her flagrant breach of the protocols and courtesies of the House when she walked in front of the previous Member to speak and between you and him when he was speaking.

No economy can hope to succeed and grow without the engine house that is the manufacturing industry. The service industry and everything else have their place, but, without manufacturing providing the strong backbone that grows an economy, no economy will reach its potential. Manufacturing, therefore, is central to the growth of our economy or any economy.

It is good to hear sound bites about prosperity in the manufacturing sector. I am not putting the manufacturing sector down in any way, but I have to be mindful, representing North Antrim, of the context in my constituency of two dire blows in the devastating losses at JTI and Michelin. It would be nice if the Minister had something positive to tell us today about the replacement of those jobs in North Antrim. It would be a timely occasion in the House, not outside it, to do that. We live in hope in that regard.

I will address a couple of the major shackles on our manufacturing. It is my hope that, come 23 June, some of those shackles will be cut because we will be liberated from the restraints of being in the European Union. It is a fact that, although only 17% of manufacturing businesses in Northern Ireland export to the EU, every manufacturing business is subject to the same market restraints, regulations and Brussels restraints as apply across the market, as if they were all exporting when they are not. One of the consequences of leaving the EU would be to liberate instantly those businesses that have been subject to unnecessary EU regulation for 40 years, even though they never exported to the EU.

One of the follies of membership of the EU is that all businesses are subject to the regulations as if they exported, even though they do not. The greater bulk of our produce is sold either locally or to GB. In manufacturing export terms, only a quarter of our produce is exported to other EU countries, yet we are subject to the entirety of that burden and restraint.

For manufacturing, the second reason why I hope that the people of the United Kingdom have the good sense to leave the EU is that it will liberate us in terms of trade as a nation. The minority of our trade is with the EU. The growth in our trade is with the growth parts of the world outside the EU, yet, because we are in the EU, we are not permitted as a nation to make a single trade agreement with any of the countries with which our trade is growing. Our hands are tied behind our back as a consequence of growing our trade and because of our membership of the EU. Far from the scare stories, the scaremongering and the ludicrous things that the Prime Minister and people from the Chancellor down have been saying, 23 June presents a marvellous opportunity for manufacturing, industry and this society to liberate themselves from the dead hand of Brussels to free ourselves —

Photo of Robin Newton Robin Newton Speaker

I ask the Member to conclude his remarks.

Photo of Jim Allister Jim Allister Traditional Unionist Voice

— from that moribund part of the world — the EU — and to follow the growth that is outside. If we do that, our manufacturing has a prosperous future rather than one hindered by the present regulations of Brussels.

Photo of Carál Ní Chuilín Carál Ní Chuilín Sinn Féin 1:30, 6 June 2016

On a point of order, Mr Speaker. I want to apologise for walking past Patsy McGlone and ask Patsy to accept my apology for walking in front of him. I do not think that there is any need to conduct a whole investigation into a protocol, if you would not mind just accepting my apologies. Thank you very much.

Photo of Robin Newton Robin Newton Speaker

Apologies noted. I draw all Members' attention to the fact that, when a Member is on his or her feet, you ought not to walk in front of him or her. It is early days, but let us adhere to the procedure.

Photo of Simon Hamilton Simon Hamilton DUP

I welcome the opportunity to respond to today's debate. I congratulate Members, including the mover of the motion, on their maiden speeches and thank Members for their kind words about my appointment. I am very glad that the first debate in the new Assembly is focused on the economy, and I think that it shows the centrality of my new Department in taking Northern Ireland forward.

There is something of a perception that Northern Ireland's manufacturing sector is in the doldrums. I understand that, and perhaps it is because of the demise of many of our traditional heavy industries over the last number of decades. Industries such as shipbuilding and textiles have either gone completely or are a shadow of their former selves. The decisions by JTI and Michelin, which were referred to several times today, to close their plants in Ballymena, along with the news of 1,000 job losses at Bombardier and, more recently, job losses at Seagate in Londonderry, are not only devastating to those who are directly affected but exacerbate the belief that manufacturing in Northern Ireland is in poor shape. That perception does not tally with careful analysis of the performance of the sector.

Whether it is jobs, sales, exports or output, our manufacturing sector is performing very well. Figures for 2015 show that employment in the sector is now at 80,000. This is the first time since 2008 that the sector has had 80,000 jobs. Sales by manufacturing firms in 2014 stood at £18·1 billion, which is an increase of 1·7% on the previous year. Manufacturing exports in 2015 were £6·3 billion, which is up £350 million on 2014. Manufacturing output was up 2·4% in the last year. Northern Ireland's manufacturing sector has been outperforming the rest of the UK, with output since 2009 up by 19% compared with 6·9% across the whole of the United Kingdom. If manufacturing were indeed in decline, none of those statistics would show the improvements that they do. I would not for a second suggest that the sector is not challenged, but it is not in the crisis that some suggest.

I, for one, am proud of the many achievements and successes of our manufacturing companies, including the fact that one in three of London's red buses are made at Wrightbus in Ballymena; that 40% of the world's mobile crushing and screening equipment is made in Northern Ireland; that over 30% of the world's airline seats are manufactured at B/E Aerospace in Kilkeel; that one in 10 cholesterol tests worldwide are made by Randox; and that a quarter of all computer read/write heads are made at the aforementioned Seagate.

I want to make it clear that, as Minister for the Economy, and as encouraged by Mr Storey in his contribution, I will always be a champion and a cheerleader for local industry. I will not stick my head in the sand and deny that there are difficulties, but neither will I talk down any sector and seek to suggest that a crisis exists when it does not. Manufacturing is and will remain a crucial and central part of our local economy. It accounts for 11% of all Northern Ireland's jobs and contributes 16% to the total economic output. While there has been some bad news of job losses, there has also been good news in the manufacturing sector, with, for example, 110 jobs announced at CDE Global in Cookstown in March. It is encouraging that the Economic Policy Centre at Ulster University forecasts that employment growth in manufacturing will account for around 10% of the 40,000 additional jobs in the local economy over the period to 2025.

There are many who will call upon my Department to provide support for the manufacturing sector, so it might be useful if I sketch out some of the assistance given in recent years. In the last Programme for Government period, from 2011 to 2016, Invest NI provided £270 million of assistance to manufacturing businesses, which, in turn, unlocked £1·9 billion of total investment and created over 13,000 new jobs.

To compete in the global economy, it is vital that Northern Ireland has in place a strong and efficient route for the delivery of high-level professional and technical skills — a point made by my predecessor as skills Minister that will, I am sure, repeatedly be made. My Department is in the process of implementing major reforms initiated in the last term of Northern Ireland's professional and technical education and training landscape through a new system of apprenticeships and youth training.

Another way in which we have been supporting manufacturing is through the competence centre programme. This helps to facilitate and encourage knowledge exchange between industry and academia in collaborative programmes in connected health, sustainable energy, advanced engineering and agrifoods. This work will support the development and commercialisation of new technologies. Invest NI has committed £5 million of funding per centre over five years. Currently, 85 companies are participating across the four competence centres, and 43 collaborative projects have been initiated.

The Executive as a whole have continued to keep in place the policy of industrial derating, which provides businesses, including many manufacturing ones, with a 70% reduction in their rates bills. That policy has keep over £300 million in the pockets of local businesses in the last five years.

Business costs are an important aspect of Northern Ireland's competitiveness. Research has shown that, on balance, even when taking into account some areas where we have higher prices, we are a highly cost-competitive location compared with the rest of the United Kingdom and the Republic of Ireland. Overall, it has been estimated that business costs were typically about 84% of those in the whole of the UK and 95% of those in the Republic of Ireland, driven mainly by lower labour and property costs.

I am well aware that, for some of our larger companies, energy costs are a significant component of overall manufacturing costs, but we should remember that cost challenges for the sector do not relate solely to energy. I am grateful to the energy and manufacturing advisory group (EMAG) for its comprehensive report and recommendations on actions that might be taken to alleviate energy cost pressures on the sector. Energy markets are complex, and actions taken in one area can have unintended consequences elsewhere. The group's report serves to illustrate those points with a diverse range of policy and operational recommendations. My Department and I are looking closely at the recommendations that have been put forward. It will be important to give careful consideration to the EMAG recommendations in the context of the wider strategic landscape and the Department’s work to review and refocus the strategic energy framework.

The focus of the motion is the call for a manufacturing strategy. I am not convinced that a stand-alone manufacturing strategy is the right thing for Northern Ireland, and let me try to explain why. My Department is leading on the development of a refocused economic strategy that will accompany the final version of the Programme for Government. A key component of informing that refocus is a strong and robust evidence base. MATRIX, which is the Northern Ireland science industry panel, was created to provide advice and guidance on the high-tech business sectors and emerging market opportunities that we should exploit to make a major impact on economic growth in Northern Ireland. MATRIX has identified strategic subsectors in major global markets that we will look to further exploit. Those subsectors, which are mainly manufacturing-based, are in the broader global markets of telecoms and ICT; life and health sciences; agrifood; advanced materials; and advanced engineering. As a small region, Northern Ireland does not have the scale to compete in every aspect of those markets. That is why MATRIX drills down to identify areas of strength and opportunity. For example, in life and health sciences we will seek to exploit capability in key subsectors, such as precision medicine, clinical trials, diagnostics and health data analytics — all of which are, of course, areas with high-end manufacturing capabilities.

That level of attention to key subsectors has also ensured that we are well placed to know our technology strengths and market capabilities in the context of European smart specialisation. Indeed, it is widely considered that Northern Ireland has the most detailed understanding of its leading industries and, therefore, the key manufacturing subsectors of any UK region. That gives our economic policy in this area considerable focus, and we continue to build on this evidence base all the time.

MATRIX's work also reflects the fact that sectors are increasingly dependent on one another; in fact, some of the most important emerging opportunities are in spaces where sectors overlap. We must not forget, for example, that services and manufacturing have become increasingly intertwined and we now have many professionals, such as software engineers, designers, accountants and scientists, working in the manufacturing sector. It is appropriate to look at all industries collectively while considering a strategy to grow the private sector.

Our manufacturing base is, because of our strong history of manufacturing, still very diverse. There are activities ranging from aerospace, automotive, electronics, pharmaceuticals and chemicals to heavy plant machinery, agritech equipment and construction products, to name but a few. You will appreciate that there is not a one-size-fits-all support solution. What will work for the small firm that is cutting, welding and making farm trailers is very different from what will work for the company manufacturing sophisticated composite components for the aerospace sector. It is important that that diversity is recognised, and I believe the best way that government can help is to create the environment that allows manufacturing companies to move forward with policies and support tailored in a way that maximises the benefit to the economy.

In essence, for those looking for a strategy, we already have one: it is called the economic strategy. It will be refreshed and refocused in line with the new PFG. I can assure the House that it will highlight the particular significance of manufacturing to the local economy and will set a clear direction for ensuring that the full gamut of appropriate policy instruments is in place to support the sector, namely a pipeline of talent to meet the skills needs of the sector now and in the future; investment in economic infrastructure; a support environment for innovation and knowledge exchange; business growth support measures; assistance with market development and exporting; and a regulatory environment that is good for business as well as protecting the interests of employees.

Before I close, I want to say that I am delighted that we now have a date and a rate for the devolution of corporation tax. A rate of 12·5%, effective from 2018, will provide a major stimulus for the economy and support for all sectors. I am confident that the ability to lower the rate of corporation tax will help to grow the entire private sector, including the manufacturing sector, as we seek to rebalance the Northern Ireland economy towards greater private-sector and value-added growth.

To summarise, while I recognise that manufacturing has experienced some recent setbacks, the sector remains at the very heart of business and industry in Northern Ireland. Our region's strong manufacturing heritage remains intact, with a higher percentage concentration of manufacturing businesses in Northern Ireland than in the UK as a whole. We can remain confident that it will continue to have a significant role to play in the Northern Ireland economy as we seek to meet the challenges of global competitiveness. The debate today has been informative, and I can support the amendment that calls for the development of the manufacturing sector to be fully considered and reflected in the Executive's refocused economic strategy.

Photo of Gordon Dunne Gordon Dunne DUP

I welcome the opportunity to speak on the amendment, and I welcome the new Minister for the Economy, Simon Hamilton, to his post. I wish him well for his time in office, and I trust that he will remember the good people of North Down during that time.

I believe that the most productive way to go forward on this issue is, as the Minister has said, to include the development of manufacturing in the Executive's new economic strategy. That is why we tabled the amendment. Our manufacturing sector has been at the very backbone of our economy for many years. With our mixture of a very highly skilled and educated workforce and a rich industrial and enterprising heritage, we have a proud and able sector that we all want to see flourish in the future. While challenges continue to exist, we see our economy continuing to recover from the global recession, which naturally had an impact on our open economy. I am delighted that outcome number one in the draft Programme for Government is that we prosper through a strong, competitive, regionally balanced economy. That puts the economy in its rightful place at number one, right at the heart of our priorities for this country in the future. The economy must continue to be the number one priority for our Executive and, indeed, for Invest NI.

Our manufacturing sector is vital in sustaining and growing our economy. We need to grow our private sector as we seek to rebalance our economy and make Northern Ireland the number one place to do business and to invest. Making the right conditions to improve our economic competitiveness and building on our export market are key to truly developing the sector. We must continue the preparatory work to get the conditions right on the ground for our new rate of corporation tax, and I welcome the statement today by the Minister on that. We must ensure that we maximise the potential that that lever gives us for our manufacturing sector.

It is vital that we equip, train and skill our workforce to ensure that we can compete for sustainable foreign direct investment and continue, as we must, to give robust support to Invest NI.

As I wind on the debate, I will summarise some of the points made by the various Members who spoke. I think that we would all commend Stephen Aiken for his maiden speech. He wants to see a change away from the public to the private sector. He registered his concern and the need for stronger economic growth. He also wants to see a joined-up manufacturing strategy, with targets and benchmarking. It is important that there are targets and benchmarking in place to monitor how we are doing. He made the point about the need for an uplift in R&D, something that the Committee for Enterprise, Trade and Investment looked at in detail.

My colleague Gordon Lyons made the point — it is a very good one — that we need to continue to sustain the jobs that already exist in our Province by making sure that proper funding is in place to stop the leakages and losses that happen. However, he also recognised the continuing growth: we are growing faster than other parts of the UK.

Conor Murphy, the Chairman of the new Economy Committee, made various points about the need for the support of a manufacturing strategy. To be fair, he recognised the need to engage with the Committee and all stakeholders to come up with an inclusive strategy.

I think that we would all commend Sinead Bradley for her maiden speech as well. It was very impressive. We recognise the work of her father in the Chamber and respect the work that he did over the years. I am sure that she will work well with other Members for South Down, including my colleague, Jim Wells. She made points about the need for strong support for the south Down area and for the local GDP, which is so important, and about setting targets for competitive energy prices, which is also very important.

Photo of Robin Newton Robin Newton Speaker 1:45, 6 June 2016

I ask the Member to conclude his remarks.

Photo of Gordon Dunne Gordon Dunne DUP

Unfortunately, I have little time. Stephen Farry, the former Employment and Learning Minister, made very good points in relation to the need to upgrade our skills and recognised the different views on whether life sciences, engineering and the agrifood sector be included.

Photo of Robin Newton Robin Newton Speaker

I call Mr Robin Swann to conclude and wind on the debate. The Member has 10 minutes.

Photo of Robin Swann Robin Swann UUP

It is a pleasure to wind on the first Opposition debate of the new mandate in the Northern Ireland Assembly. I congratulate and thank my party colleague Steve Aiken for bringing it forward.

Some of the Members from the left tried to portray the debate and the motion as talking Northern Ireland down. It is far from it, and I want to make that clear from the outset. Mr Aiken even said that this was not about manufacturing being in a sunset in Northern Ireland. The ambition and drive were summed up by Ms Bradley when she said that the debate was about raising ambition for the manufacturing industry in Northern Ireland.

The Minister quoted statistics, but I think, as Mr Aiken pointed out, 13% of our GDP comes from manufacturing at this time. We clearly should have a target of 20% of GDP from manufacturing in Northern Ireland. That is something that we should strive to attain, as is recognised by all the stakeholders in Northern Ireland and in the joint press release from Manufacturing NI and Unite the Union. Very rarely do we see joint press releases from employers and unions about good news. Unite the Union said about this motion:

"Only a dedicated strategy will bring the focus and oversight necessary to ensure real action to meet the challenges facing our producers."

Manufacturing NI said:

"Employers and trade unions have a vital role to play in terms of developing and overseeing delivery of such a strategy — we stand ready to play that role."

Both Manufacturing NI and Unite the Union asked every party in the Assembly to back this motion for a single manufacturing strategy for Northern Ireland. It is something that they have been calling for for the past year and a half to two years. I do not have clarity on why the DUP and Sinn Féin have had a difficulty with a stand-alone manufacturing strategy. The amendment wants to make it part of a "new economic strategy". Mr Lyons stated that he hoped to see manufacturing at the centre of the strategy. By proposing a stand-alone manufacturing strategy, we want to ensure that manufacturing is given the place that it duly deserves in the Northern Ireland economy.

I want to move on to some of the statistics raised in the Chamber today by the Minister on the great successes we have in manufacturing and the current numbers employed: over 80,000 at this time. Let us not forget that those figures include the large number of people in my constituency who still work for JTI Gallagher and who have not lost their jobs yet. There are blows and job losses coming to manufacturing and employers that have not been included in those statistics.

This motion is not about talking down Northern Ireland manufacturing or portraying it as being in a state of crisis; it is about giving a reality check to our new Government to ensure that manufacturing is given its rightful place, and I hope that it is not buried in an economic strategy but is given its rightful place. I ask all Members in the House today, no matter what they have committed to do, to actually listen to the stakeholders out there. I think it was a point that Mr Murphy made, as Chair of the Committee for the Economy, when he said that the Committee wanted to listen to all the stakeholders. Two of the major stakeholders in manufacturing have spoken — Manufacturing NI and Unite the Union — and they have made it clear that they want a stand-alone manufacturing strategy.

I will move on to some of the contributions and I want to come back to Mr Lyons. There were some sly comments made about the potential of my stance on Europe, but we should reflect on what Mr Dunne said in the Economy Committee the other week; he was concerned about what would happen in Northern Ireland when we left the European Union. Maybe the DUP needs to look among its own members rather than looking this way first. That may not be as clear —

Photo of Gordon Lyons Gordon Lyons DUP

Will the Member give way?

Photo of Gordon Lyons Gordon Lyons DUP

I can assure the Member that, as far as the Democratic Unionist Party is concerned, it is united on this issue —

Some Members:

Hear, hear.

Photo of Gordon Lyons Gordon Lyons DUP

Perhaps the Member would like to outline his position on membership of the European Union.

Photo of Robin Swann Robin Swann UUP

I would be happy if he asked Mr Dunne about his position, because we have it in the record —

[Interruption.]

Photo of Robin Newton Robin Newton Speaker

I ask the Member to address his remarks through the Chair.

Photo of Robin Swann Robin Swann UUP

My apologies, Chair, I was trying to address and allay fears.

I suppose one of the things that is different, possibly, about this party when compared to the rest of them is that, when our party executive passed its motion, which was actually taken by the executive of our party and was not made by a hierarchy that did not consult its members, that although, on balance, the Ulster Unionist Party feels that we are better within the European Union, members are allowed their own free thought.

Photo of Gordon Lyons Gordon Lyons DUP

Will the Member give way?

Photo of Robin Swann Robin Swann UUP

I have given way to the Member once, but I want to progress because —

Photo of Paul Frew Paul Frew DUP

Will the Member give way? —

[Laughter.]

Photo of Paul Frew Paul Frew DUP

I thank the Member for giving way. Of course, he is trying to make as good a job as he can of explaining the Ulster Unionists' position. He must have found it extremely difficult when he was canvassing in the Assembly elections to get that point across, when he made it clear so many times that he was for voting to leave, while his party is for voting to remain.

Photo of Robin Swann Robin Swann UUP

Can I ask the Member where I canvassed to leave? I ask the Member if he has any proof of that? When I was asked the question on the doorstep, I told the truth at all times, maybe unlike some of the other candidates that were canvassing in North Antrim.

Photo of Paul Frew Paul Frew DUP

Will the Member give way?

Photo of Robin Swann Robin Swann UUP

No, I have given way once; I will move on.

I will go back to the motion, because I know that the Business Committee and the Commission have taken legal advice that Europe is not to be debated in the House, although some, no more so than myself, would like it to be.

Moving on to some of the other contributions, Mr Farry, the previous Employment and Learning Minister, seemed to cast aspersions this way that I used to be critical of strategies that came out of the Department for Employment and Learning

Photo of Stephen Farry Stephen Farry Alliance

Your leader was.

Photo of Robin Swann Robin Swann UUP

Maybe I should point out that we were not just critical of the strategies coming out. It was the 13 strategies that the Department held that had 233 recommendations and the 14 implementation plans that the Department held that had 197 recommendations. So a Department, which actually had 430 recommendations, that was done away with maybe gives some weight, credence and some acknowledgement that other parties in the House have seen the very good and valuable work that came forward. When it comes to those strategies, maybe the economic inactivity strategy, if it is fully implemented and fully funded, would be a supporting mechanism to the manufacturing strategy that we have put forward today.

(Madam Principal Deputy Speaker [Ms Ruane] in the Chair)

I have made the case for why we see that a stand-alone manufacturing strategy should be brought forward as part of the Programme for Government. What concerns me is the talk that the Programme for Government is going out for consultation. The Chair of the Economy Committee said that stakeholders will be listened to, but when the Opposition tabled a motion asking that a manufacturing strategy be central to the Programme for Government, the main Government party tabled an amendment to demonstrate that that would not be the case and that it would be part of an economic strategy. So, as far as we are concerned, the Programme for Government consultation has finished and the programme has been decided. This place can be clear that a stand-alone manufacturing strategy will not be part of this Programme for Government because the amendment tabled by the DUP clearly demonstrates that.

Question put, That the amendment be made. The Assembly divided:

<SPAN STYLE="font-style:italic;"> Ayes 58; Noes 37

AYES

Mr Anderson, Ms Archibald, Mr Bell, Mr Boylan, Ms Boyle, Ms P Bradley, Mr K Buchanan, Mr T Buchanan, Mrs Bunting, Mrs Cameron, Mr Clarke, Ms Dillon, Mr Dunne, Mr Easton, Ms Fearon, Mrs Foster, Mr Frew, Mr Girvan, Mr Givan, Mr Hamilton, Mr Hazzard, Mr Hilditch, Mr Humphrey, Mr Irwin, Mr Kearney, Mr Kelly, Mrs Little Pengelly, Ms Lockhart, Mr Logan, Mr Lynch, Mr Lyons, Mr McAleer, Mr F McCann, Ms J McCann, Mr McCartney, Mr McCausland, Mr McElduff, Mr McGuinness, Miss McIlveen, Mr McKay, Mr McMullan, Mr McQuillan, Mr Maskey, Lord Morrow, Mr Murphy, Ms Ní Chuilín, Mr Ó Muilleoir, Mr O'Dowd, Mrs O'Neill, Mr Poots, Mr Robinson, Mr Ross, Ms Seeley, Mr Sheehan, Mr Stalford, Mr Storey, Ms Sugden, Mr Weir

Tellers for the Ayes: Mr Easton, Mr Robinson

NOES

Mr Agnew, Mr Aiken, Mr Allen, Mr Allister, Ms Armstrong, Mr Attwood, Ms Bailey, Mrs Barton, Mr Beattie, Mr Beggs, Mrs S Bradley, Ms Bradshaw, Mr Butler, Mr Chambers, Mr Dickson, Mrs Dobson, Mr Eastwood, Dr Farry, Mr Ford, Ms Hanna, Mr Hussey, Mr Kennedy, Mrs Long, Mr Lyttle, Mr McCrossan, Mr McGlone, Mr McGrath, Mr McKee, Mr McNulty, Mr McPhillips, Ms Mallon, Mr Mullan, Mr Nesbitt, Mrs Overend, Ms Palmer, Mr Smith, Mr Swann

Tellers for the Noes: Mr Aiken, Mr Swann

Question accordingly agreed to.

Main Question, as amended, accordingly agreed to. Resolved:

That this Assembly calls on the Minister for the Economy to include the development of the manufacturing sector in the Executive’s new economic strategy.