Ministerial Statements – in the Northern Ireland Assembly at 1:45 pm on 16 September 2024.
Caoimhe Archibald
Sinn Féin
Thank you for the opportunity to provide the Chamber with an update on the deplorable decision by the British Government to pause their funding commitments to the city and growth deals until the spending review. Members will have heard by now that, on Saturday evening, the Secretary of State, Hilary Benn, confirmed that the signing of the Derry City and Strabane District Council city deal will go ahead. I am aware, and thankful, that other Members had been making representations to reverse the previous ill-considered move, and I am glad to confirm that the deal-signing event is back on and will take place this Wednesday morning in the Guildhall. The Secretary of State also confirmed, late last night, that, following communication with Treasury, nothing has changed on the status of the Belfast region city deal. While I welcome that move, the pause must be lifted immediately on the Causeway Coast and Glens growth deal and the Mid South West growth deal.
As Members will be aware, there are four city and growth deals: the Belfast region city deal; the Derry City and Strabane District Council city deal; the Causeway Coast and Glens growth deal; and the Mid South West growth deal. The growth deals initiative is a package of capital investment of some £1·7 billion from the Executive, the British Government, councils and deal partners. The British Government pledged £617 million for four deals across the North on the basis that the Executive would match fund that investment. We have done that and have added another £100 million to the pot, making it a £717 million contribution. Councils and deal partners then added significant funding to the overall investment, which is seen as a catalyst for local economic growth.
Over 60 projects are being developed that will be delivered across the four deals, covering every council area. That substantial capital investment and the numerous projects that are in development will be truly transformative for local regions and the North as a whole. The projects range from cutting-edge innovation centres and research facilities to digital transformation projects alongside developments in local infrastructure, exciting tourism offerings and the regeneration of local cities and towns.
We became aware of the British Government's decision to pause their funding commitments until the spending review only when officials were informed on Wednesday. I immediately informed my Executive colleagues and took action to raise the matter with the British Government. During a meeting with the Chancellor in London on Thursday, the First Minister, the deputy First Minister and I outlined our shock and laid out the dire consequences that such a decision would have, urging a reconsideration. We conveyed the considerable time, effort, commitment and enthusiasm that have gone into the deals for years and advised that plans and contracts have already been put in place at significant cost to councils, project promoters, the Civil Service and Whitehall Departments.
We also made clear that such a short-sighted decision could risk private-sector confidence in the investment, the securing of which has been a key objective of the deals. The Chancellor advised that I should engage with the Chief Secretary to the Treasury on the matter. I wrote to the Chief Secretary to the Treasury that evening to ask for an urgent call, the courtesy of which has still not been extended to me. I had hoped that the British Government would provide space for proper political engagement to get a positive outcome and a commitment to proceed with city and growth deals, honouring the pledges that have been made for some years. Those pledges have included official announcements, financial profiling and British Government Ministers signing different deal documentation for three of the four deals so far — what are known as "heads of terms" and deal signing.
On Friday afternoon, the NIO informed representatives from the four deals of the decision to pause the funding commitments. That reprehensible decision came less than a week before the scheduled signing of the Derry City and Strabane deal. The Derry City and Strabane deal-signing event was called off shortly afterwards. Thankfully, common sense prevailed, with the British Government coming to the right decision late on Saturday evening, which has now enabled the Derry City and Strabane District Council deal-signing to go ahead as planned on Wednesday. From speaking with the council's chief executive on Saturday night, I know that the reinstatement of the deal signing has come as a huge relief to the council and deal partners, who have invested significant time and effort in preparing for that important milestone, which will allow funding to begin to flow to the cutting-edge projects and bring real change to the region.
While some level of common sense has prevailed, we are now faced with the incomprehensible decision to treat the deals differently. I am clear that there can be no disparity of approach. The approach that has been taken could undermine the momentum and confidence of deal partners in the Causeway Coast and Glens and Mid South West growth deals, who have put so much time and effort into developing the many projects. I spoke to the chief executives of those councils this morning and assured them that I continue to press for the immediate reversal of the pause in the funding commitments to those deals.
I am very frustrated and angry about the British Government's handling of the matter. The lack of information to and formal communication with Departments and deal partners is totally unacceptable, and it is not how I would expect people to do business. If the British Government are serious about resetting relationships, they must seriously reflect on this shambolic episode and put an end to this appalling behaviour. It is completely unfair that Causeway Coast and Glens and Mid South West growth deals would have to wait until the spending review for clarity.
The British Government must immediately lift the pause on the Causeway Coast and Glens and Mid South West growth deals. It is time for them to have a reset on their reset. Those city and growth deals will be game changers for our cities and towns and a catalyst to boost economic development and create good jobs. It is crucial that all deals continue as planned.
I will continue to impress upon the Chief Secretary to the Treasury that the British Government must honour their commitments and pledges made to the city and growth deals, which will be transformative for our cities, towns and regions, bringing hope and prosperity right across the North for our citizens, communities, businesses and future generations.
John Blair
Alliance
Thank you, Minister. Members, I think that we have time for one question before Question Time.
Matthew O'Toole
Social Democratic and Labour Party
Thank you, Mr Deputy Speaker. Minister, the SDLP has long been a champion of city and growth deals, including when others were not so enthusiastic, so we are frustrated and disgusted by the ineptitude and chaos that we saw on Friday night, and we support the call to ensure that all city and growth deals proceed as planned. Could the Minister be specific about the conversation that she had with the Chancellor of the exchequer on Thursday, because it appears that there was a conversation about this? The Minister made representations to her. Was she aware that this had happened? Was she unaware? What was the specific ask that the Minister made, and what was her response? It is important that we, including those on the Finance Committee, understand what went wrong here.
Caoimhe Archibald
Sinn Féin
I thank the Member for his question and for his support in this matter. As I set out, I laid out our shock at the news that we had received just the day before; the considerable time, effort and commitment that had been put in by deal partners right across the North; and the consequences that such a decision would have and how negatively it would be received.
I cannot answer as to whether she had previously been aware. I assume that she was, because we had, obviously, engaged at official level in advance of travelling to London, but she advised that I should engage with the Chief Secretary to the Treasury, which I did immediately. He would have had an email in his inbox before I arrived back to Belfast. I had, as I said, requested an urgent call, and I have not yet had that call, which is really disappointing. I do not think that that is how you should do business, and I would expect better.
I am continuing to press that all those deals go ahead as planned and that the pause on the funding commitment is lifted.
John Blair
Alliance
Minister, thank you.
Members, I am afraid that I must interrupt the proceedings as it is time soon for questions to the Minister for Communities. After Question Time, we will start again on this item with questions to the Finance Minister. The next question then will be from Philip McGuigan. I ask Members to take their ease for a moment or two for a change at the top Table.
The business stood suspended.
(Mr Speaker in the Chair)
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