Business resumed.

We will now resume questions on the statement from the Minister of Finance, which started before Question Time and the question for urgent oral answer. The next question is from Philip McGuigan.

I thank the Minister for her statement and for the work that she did over the weekend that brought a result for Derry City and Strabane District Council. There can and should be no differentiation in the growth deals and the positive benefits that they bring to citizens and ratepayers across the North.

I concur with the Minister's comments in her statement that the British Government must immediately change their decision to pause the remaining growth deals, including that of Causeway Coast and Glens, which covers my Constituency and that of the Minister. Is the Minister aware of any formal communication from the British Government to the city and growth deal partners?

I thank the Member for his question. I am well on record at this point as saying that the handling of the matter by the British Government has been atrocious. I am not aware of any formal communication between the British Government and the deal partners, but there was a call with the NIO on Friday to inform it about the pause. The haphazard approach that we have seen in relation to the matter has led to unnecessary confusion, concern and stress for all involved in the city and growth deals. It was a decision by the British Government, and, therefore, it was for them to formally communicate that.

My officials have been in constant contact with deal partners over the weekend. The handling of it has been absolutely terrible. I have spoken to all the chief executives of the impacted councils over the weekend or this morning and assured them that I and my officials are doing what we can to resolve the situation immediately.

I thank the Minister for her statement and share her anger and disappointment about how this has been handled by the Labour Government. What assurances has the Minister received, particularly in relation to the Londonderry and Strabane deal, which has now been unpaused? What assurances has she been given that it will not be paused again in the future and that what has been committed to will be delivered?

I thank the Member for his question. The communication that I have been given in relation to Derry and Strabane is that it will go ahead and the deal signing will go ahead. That is the extent of the communication that I have received. I am still pressing Treasury for formal communication. Derry and Strabane is one deal partner, but those who are still affected by the pause have a lot of questions, and there are a lot of things that we still do not have clarity on that we are trying to get clarity on.

Thank you, Minister. Given the comments by other parties, I find the creation of a hierarchy of urgency when it comes to the four different deals really problematic. The heads of terms for the Causeway Coast and Glens growth deal has already been signed with the NIO. It is not quite as far along as others, but that is the fifth-most-deprived council area in the UK, so there is a sense of urgency. It is a particularly rural area. Minister, is there anything around the rural aspect of these deals? Is there anything that we can do to protect rural communities from being disenfranchised by the decisions to pause the deals in the two most rural areas?

I share the Member's dismay at the hierarchy and the fact that we have a disparity in approach. It is absolutely unacceptable, and I will continue to make the case that it needs to be rectified. City and growth deals are intended to do all of those things around addressing regional disparities: driving and boosting local economic development, creating jobs and redressing the deficits that exist. Those are some of the points that I made to the Chancellor on Thursday about why the delivery of these projects is necessary and why the commitment must stand. I will continue to make that case. I will speak to the Chief Secretary to the Treasury and the Secretary of State later this afternoon to relay that message again about the need to unpause the other two deals as a matter of absolute urgency. They cannot wait until the end of October.

I thank the Minister for her remarks so far. Less than a week ago, I was at Oxford and listened to the Secretary of State, who talked very clearly about the great approach that we are taking and the expenditure that we are going to make. He actually talked about the approach to city deals. Then, less than a week later, we are beyond this. Minister, you used the words:

"We need to reset the reset", which is something that I firmly agree with. Will you ask the Secretary of State, when you speak to him today, what he is going to do to rebuild confidence between the Northern Ireland Executive, the people of Northern Ireland and this Government, who do not seem to know what they are doing? It is unacceptable and it is not something that we should be having to deal with in this day and age.

I have reflected on that over the weekend and do not think that this is how we should do business. There needs to be a reflection, at this point, on how things have been handled over the past couple of days. This Government have done a lot of talking about rebuilding relationships. We now need to see actions that match up to those words. Certainly, I will make that point and emphasise that confidence has been damaged by this episode and needs to be rebuilt.

Thank you, Minister. Instead of resetting relationships, they have unsettled them over the past couple of days, and that is unfortunate. It is good that the Minister is being proactive with the deal partners. We know that the Derry and Strabane deal is due to be signed this week to go ahead. At what stage are the other deals, and what is the impact of any delay on those around the momentum that has been built?

The Belfast region city deal, as the Member will be very well aware, was signed in December 2021. Twelve legally binding contracts have since been signed, and a further three of those are expected to be signed in 2024. Planning permission had already been granted for some of those projects as well. You mentioned that Derry and Strabane District Council has made excellent progress in developing projects for its city deal. It is now due to hold an event in the Guildhall on Wednesday to officially sign that deal. It is at the financial deal-signing stage. Causeway Coast and Glens Borough Council signed heads of terms on 24 April, and preparation is going into the outline business cases to progress to the next stage of the financial deal signing.

Obviously, as I said, the fact is that the pause in the funding commitment will damage confidence and the momentum of that project. That is why it needs to be rectified immediately. The Mid South West growth deal has also been making excellent progress and the deal partner was preparing to sign the heads of terms in late autumn. Again, I will press the Chief Secretary to the Treasury and the Secretary of State for clarity on the funding commitments for that deal and, again, stress that the pause should be lifted as a matter of urgency.

I thank the Finance Minister for her answers so far. The Minister will remember that one of her first actions after taking office was to agree extra funding for the Enniskillen A4 southern bypass. A further £12·5 million was to come from the growth deal. That infrastructure project has been talked about in my Constituency for four decades. Drive through Enniskillen any time, and you will see that the project is needed. Does the Minister, working with the Infrastructure Minister, remain committed to progressing the A4 Enniskillen southern bypass in light of the Government's pause on city and growth deals?

The Member's question points to the difficulty that the pause on the funding commitment has created. There is a range of projects right across the North on which delivery is critical, and now there are question marks over some of those projects. I will work with the Infrastructure Minister and all Executive Ministers to understand where we are with individual projects, but we need to get the pause lifted as quickly as possible so that we can put certainty back into the delivery of those projects and ensure that there is not a loss of confidence. A lot of people out there have angst and concern about whether projects will be delivered, and I am not in a position to answer their questions, because I do not have clarity on a lot of them. We need that clarity as a matter of urgency.

Minister, are you aware of any precedent for investment on such a scale being pulled or paused without consultation with the Executive? Do you agree that, for a Government who talk up their economic credentials, their behaviour over past days would put their Tory predecessors to shame?

I am well on record at this point about how deplorable the actions of the past days have been. The answer to the first part of your question is no, I am not. It is outrageous that we are in that situation. We need that to be rectified as a matter of urgency, because those projects will deliver economic development, create jobs and provide infrastructure investment. I made exactly those points to the Chancellor. She talks about a growth agenda; the city and growth deals will deliver that. We need to see them back on track.

I thank the Minister for her statement. I share the dismay of the Minister and every other Member at the manner and content of the announcement. The Mid South West deal impacts on my whole Constituency. Over the weekend, people from Dungannon and south Tyrone who have been working diligently on plans and improvements for our area, in the expectation of and with the promise that there would be funding, have been left unaware of what is going to happen. What type of projects will be impacted on by that announcement?

I share the Member's concerns. I spoke to the Mid South West chief executives earlier, and I understand and feel their frustration, given the effort that has gone into developing those projects. The British Government's funding, for the most part, goes towards innovation and digital projects. They are, again, the projects that will be game-changing in economic development and boosting jobs and local economic activity. For example, in Causeway Coast and Glens, the British Government were funding the Bushmills innovation and incubation hub; the centre for drug discovery, biofood and pharmaceutical innovation; and a food innovation and incubation hub. The private sector, along with the universities, has put a lot of development and interest into those things.

In the Mid South West deal, it is projects such as the agri bio innovation centre, the Mid South West innovation programme and the green energy pilot. Those are the projects that the British Government are supposed to be funding. They are really exciting and innovative projects, and we need the pause to be lifted as soon as possible, so that everybody can get back to ensuring that they are delivered as quickly as possible and so that Mid South West can get its heads of terms signed.

I pay tribute to all parties in the House that worked together to try to ensure that the deals were reinstated. I know that, moving forward, all will continue to work together to ensure that the other two are unpaused.

Speaking of paused funding, the Finance Minister may be aware that, as part of the announcement, the Labour Government have also paused £2·5 million under the Levelling Up Fund for Crusaders Football Club, in my North Belfast Constituency, to deliver a skills centre that would have tackled educational underachievement in one of the most socially deprived wards in Northern Ireland. Will the Minister commit to raising that important issue with the Secretary of State to get the funding back on track in order to deliver that much-needed project?

I thank the Member for his comments. There has been a unity of purpose shown on the issue, and that is to be commended. It has helped us get to the position that we are in now, but we have a way to go to ensure that the funding committed to the Causeway Coast and Glens growth deal and the Mid South West region growth deal are delivered.

I was not aware of the specific issue that the Member has mentioned, so I am happy to raise it for him.

Minister, I agree with you and everyone in the Chamber that the UK Government's handling of pulling the funding for the city and growth deals is absolutely atrocious. My Constituency of North Down was due to benefit from the Belfast region city deal. Can you confirm for my constituents that the Bangor waterfront project will go ahead? Do you agree that the redevelopment of its seafront is vital for the regeneration of Bangor city centre?

The communication from the Secretary of State is that the status of the Belfast region city deal is unchanged. That is the extent of the communication that I have had. As I said to Deborah, we need to get clarity on all those matters, and I am still waiting for that formal communication to set out the exact status of each of the city and growth deals. The project that the Member referred to is hugely important for her constituents, in the same way as a number of projects that we will all point to into which local partners have put a lot of time and effort through development proposals and investment. We need to see the assurances for each of the city and growth deals and the pause lifted on the two that remain paused.

I have been involved in the Mid and East Antrim Borough Council projects since the work on the Belfast region city deal started eight years ago. If the Causeway Coast and Glens growth deal and the Mid South West region growth deal do not proceed in the current time frames, or, indeed, do not proceed at all, who will reimburse the ratepayers who have already committed money to bringing projects to their current stage? Who will meet the additional costs that may be incurred in future from the pause that we currently have on the two growth deals?

The Member's point about having been involved for eight years is relevant. So much time and effort has gone into developing projects for each city and growth deal. I am not in the headspace where I accept that there will be a reneging on the funding commitment. The Government need to honour the commitments and pledges that they made on the funding, and, where deals have already been signed, it is only reasonable that we expect them to be delivered. I am therefore not yet in the place where I need to be thinking about reimbursing people. Collectively, we need to make the case for the commitments to be delivered on.

I thank the Minister for her efforts so far. My comments are similar to those that Ms Mulholland from North Antrim made. Why Belfast and Derry? Why were those two deals allowed to continue? Why have the deals for the other areas been paused? Is there any indication as to why the UK Government have singled out those two areas in particular? It is good that the Belfast and Derry deals can continue, but on what basis was that decision made? Is there any indication of the basis on which it was made?

I thank the Member for her questions. I share her dismay about the projects, because she and I are Constituency colleagues, and we know well the importance of the growth deal locally. I do not know the rationale behind the decision. I can only presume that it is about the progress made. The Belfast region city deal had moved past the financial deal-signing stage, and a number of contracts had been signed. The Derry city deal was getting to the financial deal-signing stage, but that is why we need to make the case for why there can be no disparity among the various deals.

They all need to be delivered. Those responding committed to them all — the British Government, the Executive and other local partners. Therefore, they all need to proceed, and they need to proceed as a matter of urgency. Nobody should be sitting around until the end of October waiting for clarity on that, because that will undermine confidence in the projects being delivered.

Gabhaim buíochas leis an Aire as a freagraí.

[Translation: I thank the Minister for her answers.]

Does the Minister agree that it is crucial that a strong message come from her and the Executive that the Executive's commitment to the city deal projects, such as those in the Mid South West region, including my Constituency, is rock solid? She mentioned that she had made a request to the Secretary of State. Will representatives of the Executive request an urgent meeting with the Chief Secretary to the Treasury? It is vital. The Cookstown bypass in my constituency is extremely important for the revitalisation and economic development of the area.

Minister, you can take whichever of those questions you want.

The number of Members in the Chamber this afternoon to ask questions on the topic shows how important it is. I will have a call with the Chief Secretary to the Treasury this afternoon. It is important that we seek clarity around the projects that remain paused. That pause needs to be lifted as a matter of urgency. The Member cited a project in his Constituency that needs to be delivered: we all have those projects, and all of them need to be delivered. All of the commitments made in relation to that funding and all of the pledges made — the deals that have been signed — need to be delivered.

Alan Chambers. Sorry, Alan Robinson.

I am the right Alan. Does the Minister agree that the projects in the Causeway Coast and Glens that are now at risk are absolutely vital to that region? Does she agree that the action of the Labour Government in announcing the pause was an absolutely despicable way to treat the people of the Causeway Coast and Glens region and, more so, the local borough council and its officials? It is a shameful way for elected reps in the Labour Government to treat elected representatives in Causeway Coast and Glens.

I thank the Member for that question. Like me, he will be familiar with the projects in the Causeway Coast and Glens deal. I had the opportunity to visit Bushmills recently and hear about the plans for the regeneration project there. There is also Dungiven regeneration and the range of innovation projects in which the university and the regional college are involved. They are all really important in driving forward our economic development, boosting economic performance, creating jobs and supporting businesses and infrastructure development. It is crucial that they be delivered. My feelings about how the whole episode has been handled are well on record: it has been absolutely shambolic. There needs to be serious reflection on the rebuilding of relationships, because they have been seriously damaged over the past few days.

I thank the Minister for bringing the subject to the House today. I want to address the chaotic handling of the issue by the new Labour Government and the unnecessary stress that it has placed on our councils, in particular, over the weekend. Does the Minister have a quantification of how much, our councils and Departments estimate, they have invested in project development on each of the city deals to date on the basis of the commitment of £617 million by our UK Government? That total would be a strong way to show the Labour Government how much has been invested in Northern Ireland to date.

I have figures here on what has been invested in each of the deals over the past number of years. Obviously, the Belfast deal is the most advanced, and funding has been flowing there since about 2022-23. There was £3 million that year and £5·36 million in the following year. In Derry and Strabane, £0·9 million was spent in 2022-23.This year, about £48 million has been spent, of which about £39·5 million is a British Government contribution. In Derry and Strabane this year, £0·72 million is anticipated to be spent on one of the projects, along with £2·7 million on the Derry North Atlantic museum, which is funded through the Executive's contribution to the Inclusive Future Fund.

There has been considerable investment. That is the funding that has flowed from the Executive and the British Government, but there has also been investment from local partners in the development of projects to business case stage so that they are in a position to be taken forward. All of that is put at risk, if there are questions marks over it, and confidence in deliverability is undermined. That is why we need the pause on the two remaining deals to be lifted as a matter of urgency and the funding commitments delivered on.

I thank the Minister. We support the progress of all the projects. As many have stated, the thing has been shambolic. I want to address a point made by another Member who said that there was no hierarchy of need. Actually, there is: the deficits that the city deals were set up to address exist nowhere more acutely than in the north-west, so we are glad to get Derry back on track.

Minister, given the pressures on Executive budgets, how safe is the Executive's commitment of £717 million across the four proposed city deals? Will it remain ring-fenced until the UK Government press "Play" again?

As the Member will be aware, the city and growth deals are delivered over a number of years, so that funding commitment is over a number of years. As I said in response to another Member, I am not yet in the space of accepting that funding commitments will be withdrawn. That is not an acceptable position for us to be in. The commitments need to be honoured, and the British Government need to live up to the commitments that have been made. The Executive are certainly committed to the delivery of the projects; we expect the British Government to do the same.

I thank the Minister for coming to the Chamber today. Is she able to provide any clarification of whether the uncertainty surrounding the city deal funding extends to projects that rely on access to the complementary fund?

The Member will be aware that the complementary fund is an additional £100 million that the Executive committed for the three city and growth deals — the Belfast region deal, the Causeway Coast and Glens deal and the Mid South West deal — that are not in receipt of Inclusive Future Fund moneys, which the Derry and Strabane growth deal is. I think that £52 million of that fund has already been earmarked for a number of projects, leaving £48 million still to be allocated. As I have said, I do not accept that it would be reasonable for us to be in a position where the British Government renege on their funding commitments to those two growth deals. I will continue to urge them to honour those commitments and the deals that they have already signed.

I will continue to impress upon the Treasury that it needs to reverse those pauses and the deplorable decisions that have been taken, because there can be no disparity between the deals. To return to Mr Durkan's point, we all accept the need to address regional inequalities, and Derry and Strabane are right at the top in relation to that. However, all our regions face difficulties. We really need the projects to be delivered in order to drive forward local economic development.

I thank the Minister for coming to the House today. If the Labour Government continue to cancel finance for projects that benefit citizens, they could go down as the worst Government ever, headed by the worst Prime Minister ever. That is only my opinion.

Minister, you have mentioned some of the nine projects in the Causeway Coast and Glens that are at risk as a result of the Government's decision. Given the importance of the deal to the Causeway Coast and Glens area, will the Minister mount a robust challenge to ensure that the Mid South West and Causeway Coast and Glens areas are not disadvantaged by the Government's divisive decision, that there is equality of opportunity for both areas and that regional inequalities are addressed? I imagine that you will have full support across the Chamber to do so.

I thank the Member for his question. I am happy to give that commitment. There should be absolutely no disparity in the treatment of any of the projects. It is imperative that the pause is lifted on the two remaining deals as a matter of urgency and that they do not have to wait until the end of October to have certainty. Otherwise, confidence in those projects will be undermined. I have spoken to all the chief executives, and there is such angst, concern and anger about how they have been treated, which needs to be addressed as a matter of urgency.

Minister, you indicated that you became aware of the UK Government's intention on Wednesday. Was the Minister for the Economy also aware of that when he made his announcement and addressed the press at 4.00 pm on Wednesday regarding the expansion of Magee and the report of the task force? If so, was he aware at that point that the content of the report was under severe threat because the Majority of the money committed to the expansion at Magee, which is so important, comes from the city deal?

We became aware of the pause on Wednesday afternoon at official level. It was only on Wednesday evening that I made Executive colleagues aware of it. I cannot answer for the Economy Minister, but I know when I made my Executive colleagues aware of the news, and it was late on Wednesday evening.

There is great consternation about the pausing of the deals across the Chamber but particularly among those of us whose constituencies are affected by the continuing pause in the Mid South West deal. That deal is important to Upper Bann, particularly its agri-food element, because of the large manufacturing base and the rural Constituency that we have. We are concerned that the Secretary of State is not aware of the harm that could be caused to the growth in Northern Ireland's economy.

I have to point out that more than the north-west have areas that suffer great deprivation, and I was glad to hear you say that. What will the Minister tell the Secretary of State when she meets him later today about why he should unpause the Mid South West and Causeway Coast and Glens deals and rectify what would be a great injustice and a great harm to regional equality?

Thank you to the Member for that. I agree with her about the need for the projects. They will be game-changing in local economic development and the potential for job creation and further investment in local areas. Those are the exact points that I will make to the Chief Secretary to the Treasury and the Secretary of State and that I made to the Chancellor last week. As I said, the Chancellor has talked about a growth agenda, and the projects that we are talking about completely align with that objective, so we need to see them delivered.

The point on the two deals on which a pause remains is well made. That pause needs to be lifted immediately. They need to have the same certainty and clarity as the other deals so that people can get on with their work to deliver on those important projects.

Minister, city deals are seen as an important catalyst for so many crucial projects and initiatives, with huge effort and cost having already been expended. What are the consequences and costs of pausing the Mid South West growth deal, what impact will that pause have on places like Armagh city and what efforts are under way from you and your Executive colleagues to have those deals restarted?

As I have outlined in the Chamber this afternoon, I had the opportunity to speak to the chief executives of the three councils in the Mid South West growth deal area this morning. They relayed to me the importance of ensuring that the pause is lifted as quickly as possible so that it does not damage the progress of the deal or undermine the confidence and momentum that has been built up with so much commitment from local government and private sector partners.

I will continue to make the case that we need to see that pause lifted as quickly as possible and that there should be absolutely no disparity between the four city and growth deals so that people can then get on with actually delivering.

Thank you, Minister, for the replies, and thank you, Members, for the questions. That concludes questions on the statement. I ask Members to take their ease for a moment or two while we change the top Table.

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