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Part of the reason for the agency’s difficulty is the difficulty in retaining expert staff, because the rewards of private practice are so much greater than the rewards in the public service. Steps have been taken over the past few years to make additional resources available to the service, but I hope that more can be done. The delays occurring in the Planning Service have a significant negative effect on development and consequently on the local economy. Perhaps I may give an example from my former constituency in the Banbridge area. A development there—Bridgewater Park, a combined industrial and commercial site—is finally coming on stream although the proposal was raised well over a decade ago. The planning delays in bringing it to fruition have been inordinate.

We are running into difficulties from the Planning Service in a related proposal affecting the small town of Gilford. This very imaginative proposal could be considerably positive not only for Gilford itself but for the region. It involves converting a former mill into a hotel and developing a new golf course nearby which will link the two together. It will greatly enhance the region’s tourism potential. This very positive development, involving multimillion pound investment, is now imperilled by the Planning Service. The problem is coming not

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simply from planning but from environmental and conservation considerations, which are fine in themselves but which should be taken and balanced against the positive economic benefits that there would be for the region. The matter is still very much in progress, but it should be mentioned, because it would be more than a shame if this development was frustrated because of the way in which it is being handled through the Planning Service.

I appreciate very much the comments that were made about the noble Lord, Lord Laird. It was said that because of the noble Lord’s absence, we would not have any mention of Waterways Ireland; I am now going to fill the gap on this matter. I will mention Waterways Ireland, but not in terms that my good friend would use. During the negotiation of the Belfast agreement, I was very much determined that waterways would be among the list of potential cross-border co-operation. I very much wanted that on the list for one reason and one reason only; namely I hoped that this would be a way in which we could advance the restoration of the Ulster Canal, which is a cross-border canal. It was not a cross-border canal when it was constructed; the border came into existence subsequently. If it were to be restored, it would be a cross-border canal. It is a project that ought to be advanced. From a tourism and leisure point of view, we are limited in the possibilities for tourism in Northern Ireland. We are always going to be engaged in various forms of niche tourism, but the use of waterways for leisure purposes is such a niche; and with the lakes, the loughs and the rivers that exist, there is huge potential. Indeed, there was a feasibility study into the restoration of the Ulster Canal, and that feasibility study must now be well over 10 years old, or pretty close to it.

They have been restoring canals in the Republic of Ireland, and they have been enhancing the use of waterways for leisure purposes. It is a highly desirable objective. Not only does it increase tourism, but it is significant from the point of view of rural regeneration. The Irish Government are well aware of the value of this exercise, but unfortunately in the Northern Ireland departments there is scepticism about the value, and there has been and continues to be resistance in the Northern Ireland departments to this operation. The matter is topical again because in the recent plan for capital expenditure announced by the Irish Government, they once again put in their share of the money for the restoration of the Ulster Canal. Quite some time ago, they effectively said to their Northern Ireland opposite numbers, “There is our money on the table; where is yours? If it is put down, we can get started on this”. I hope very much that something will happen on that.

I want to put that into a slightly broader context. If you are going to get the full benefit of the leisure and tourist potential from the restoration of waterways, your waterway needs to link up with major urban areas. That is the case in England and Wales, because the waterways were designed to carry goods and raw materials to areas that were then industrial areas but are now urban areas. The reason for the need to have the link-up to the urban areas is that from the point of view of the initial viability, it is people from those

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urban areas who might be persuaded to buy a boat and then to use it moving from the urban areas out into the countryside. Restoring the Ulster Canal, which would link Lough Neagh with Lough Erne through Monaghan, is good in itself, but if we really want to get the full benefit from it we need to restore the Lagan navigation as well, to have a network that stretches from Belfast through Lough Neagh to Lough Erne. It is no accident, from the point of view of restoration of the Irish canal network, that the Irish have started from Dublin with both the Royal Canal and the Grand Canal and are working out across from Dublin towards the Shannon waterway system.

So if we want it to be successful at the Northern Ireland end, we need to put in the Lagan navigation as well. It could be done for a fraction of the cost of the Ulster Canal restoration if the environmental heritage department could be persuaded not to list the derelict blocks, or to remove the listing. The listing is such that it will enormously increase the cost of restoration. From an environmental heritage point of view, the listing will achieve no significant benefit if the effect is to keep the locks derelict.

On my next observation, my view differs from that in the feasibility study into restoration of the Ulster Canal a decade or so ago. I think that it is desirable not to gold-plate the operation. When the Erne-Shannon link was put in, it was gold-plated. It has automatic locks—you swipe the card through and the locks work. It might sound like a good idea, but it is a bad idea. Do the locks the traditional way so that the boater had to get out, get his windlass, wind up the paddles and then open the locks. It is good physical exercise: I lost half a stone doing it last summer, and I am looking forward to losing a bit more this coming summer. In case noble Lords feel that I should declare an interest, I shall not, because my boat is on the English waterway system and will not come to the Irish waterway system. There is no point in having narrowboats on the Irish waterway system because they cannot cope with open water. But that is another matter. Working the locks is part of the attraction of using waterways and turns it into a valuable family activity by giving everyone something to do.

From my experience over the years I know how much families enjoy the locks. Making it easy to use them might be all right for those who are just going round in their gin palaces and are not up to doing a little bit of work; but if we are to attract those whom we would want to attract, we should not gold-plate the system. I thank the Committee for its indulgence of me as I gathered up those hobby-horses for their canter. I look forward to the observations of the noble Baroness.

Lord Maginnis of Drumglass: I want to raise, as briefly as I can, one or two general issues. I do not know why my Liberal Democrat friends are so sceptical about that.

First, where are we going with the reform of local government, and what in practical terms will happen? We have a great plan for what I call a super-substratum of local government. We are going to

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reduce the number of councils from 26—and I think that there is much sense in that—to seven, but to seven super-sub-councils. If we are to have devolved local government, then, in a community with about 1.7 million people, it is nonsense to talk about having seven super-councils for which, according to the Budget, there will not be any extra money for new building or new premises. I think that they will be an exceedingly expensive luxury. In tandem with devolved government, we should have a form of local government that delivers local services at the local level. We must get rid of the idea of seven super-councils and look at reducing the 26 to 14 or 15, so that a relationship can be established between the devolved arrangement at Stormont and what is necessary locally. I hope that there is still enough latitude and imagination in whatever is going to happen to enable us to achieve that.

5.30 pm

There has been a massive disposal of local assets in recent years. I am interested on two fronts. Military assets have been disposed of, and I am told that that comes back to the Ministry of Defence or to the Exchequer. If so, so be it. However, in the late 1990s, we were told that if we achieved peace in Northern Ireland, the assets from that achievement would be reinvested in Northern Ireland. If multimillions of pounds from the disposal of capital assets are coming back to the Exchequer and not being invested in Northern Ireland, I think I would like to know the justification.

The disposal of police capital assets is another issue. I have asked questions about where the money from the sale of parts of the police estate—police stations and the like—is being invested but have not received a clear answer. I should like to think that it is being invested exclusively in Northern Ireland and can be put towards the new police college, where there is a dispute regarding the figure of £90 million or thereabouts and a requirement of £135 million. Are we to have a cutback in this fine police college which we were promised would be a college of international standing because the Government are not going to find that £45 million? That is a huge amount but it could be looked at in terms of the income achieved by the sale of police estate. I know that I am straying outside the scope of the debate and apologise. I do not pretend that I am unaware of that. But the issue goes side by side with what we are discussing. We cannot divorce from this debate the effect of this issue on daily affairs in Northern Ireland.

I conclude on an issue that very much falls within the context of the Northern Ireland Budget. I have asked a number of Questions—some of which have inconveniently not yet be answered—about money invested in dealing with the major problem of autism. I declare an interest as vice-president of Autism Northern Ireland and I have a personal interest in this issue.

Although I am told it is a fine scheme, I cannot understand why the Middletown initiative is going ahead with ring-fenced funding when we cannot achieve ring-fenced funding for the assessment of children

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who badly need it for their future; that is, children who are suspected of having autism. I do not see any money dedicated specifically to that. I have had great difficulty trying to find out from the Northern Ireland Office where money for these specific assessments will come from and why 560 children are currently waiting—sometimes for almost three years—to be assessed. And yet we can have ring-fenced funding for a redundant nunnery in Middletown which is to be used as a centre of excellence, although nobody quite knows what it can do. It is isolated from teacher training colleges, universities and the main centres of population. It is a mad notion which was introduced by the Minister in the last Assembly, Martin McGuinness. I think it was done for dubious reasons and I leave it at that. But it is not a proper or good disposal of scarce moneys which should be better husbanded. Those specific points are important for the people of Northern Ireland when they look at how scarce money is being expended.

Baroness Harris of Richmond: I had not intended to contribute to this debate but shall do so after hearing about the vast sums being spent in Northern Ireland, in particular on education, for historic reasons that we all understand. The number of people in Hampshire and Dorset together is equal to the number in Northern Ireland. It would be invidious to compare the combined cost of education in Hampshire and Dorset with the money going into Northern Ireland. It is probably too late now to do so because it has all gone through. But have the Government thought about local government as an important element in the provision of education? Have they thought about having just one unitary authority and 26 what I shall call community councils, rather than parish councils or whatever one wants to call them? The cost of that might be significantly less than the present reorganisation proposals. I simply ask the question. The Minister may not be able to answer it, but it struck me forcefully as we were talking about the amount going to education and the reorganisation of local government and the costs therein.

Lord Smith of Clifton: My Lords, I do not want to prolong matters, but I shall repeat the observation that I made yesterday in the Chamber. This is a major item of Northern Ireland business, but in Grand Committee we do not have the benefit of the views of members of the Democratic Unionist Party. They have absented themselves once again from an important piece of Northern Ireland business. I say this more in sorrow than in anger. We should encourage our colleagues to give us their views on this range of expenditure. It would have been most helpful to have had them.

Baroness Amos: My Lords, I begin by thanking noble Lords for welcoming me back to Grand Committee and to Northern Ireland business. I confess that when it became clear that I would have to do some Northern Ireland business, I said to my noble friend Lord Rooker, “As long as I don’t have to do the Northern Ireland Budget”. But here I am. Clearly, it was intended that I should be here.



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I should say to noble Lords—particularly to the noble Lord, Lord Shutt, who raised a number of the issues he mentioned when I replied to this Committee many years ago—that it was quite a delight to hear the same issues coming up again. Like the noble Lord, Lord Glentoran, I hope that this is the last time we debate the Northern Ireland Budget. We all hope that the process of devolution will proceed. I also join noble Lords in noting the absence of the noble Lord, Lord Laird. He always brings what I can only describe as a colourful dimension to our proceedings. I certainly miss him.

If I may, I should like to run through the various points that have been raised, starting with the general points on the economy raised by the noble Lord, Lord Glentoran. He is correct to say that Northern Ireland’s unemployment is at a record low and well below the UK average. Employment is also increasing rapidly, particularly in the services sector. In terms of skills development, that remains an area of concern to some. I note the noble Lord’s comments on the local housing market. As he will know from discussions today about the housing market particularly in London, it is not a unique problem. However, a significant housing affordability review is under way. The affordability review is considering the barriers affecting those seeking affordable housing in the owner-occupied and the social and private rented sectors. An interim report has just been produced for consultation. Following the consultation period, final recommendations will be presented to the Government in the spring.

The noble Lord, Lord Trimble, raised wider Budget issues regarding the various requests for additional funding in Northern Ireland. It would be a much braver person than I who responded in detail on that matter. This is a time when the budgets of all government departments and wider public sector bodies are facing pressure as a result of wider economic conditions. I am absolutely certain that that will be one of the things that the Chancellor bears in mind. The current package presented by the Chancellor offers a stable and robust base on which an incoming Executive can develop priorities and associated spending plans. That remains our view.

On the point made by the noble Lord, Lord Glentoran, on the scale of public sector employment in Northern Ireland, the noble Lord is of course right that the key issue is to increase private sector employment. It is important to point out that the level of public sector employment in Northern Ireland is high when it is expressed as a percentage of the total number of those employed. If, however, you look at it as a percentage of the total population, it is actually exactly the same as elsewhere in the United Kingdom, because you need certain levels of nurses, teachers and others.

5.45 pm

The noble Lords, Lord Glentoran and Lord Maginnis, who is briefly not in his place, mentioned the review of public administration, which covers local government, education and the major health and social services bodies, including the remaining Executive agencies

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and public bodies. Under the current timetable, by 1 April this year, five new health and social services trusts will replace 18 existing trusts. By 1 April next year, a new health and social services authority will replace four existing health and social services boards. A new patient and client care council will replace the existing four health and social services councils, and a new education and skills authority will replace the five education and library boards. A new library authority will also be operational. By 1 April 2009, seven new councils will replace the existing 26 councils. The noble Lord, Lord Maginnis, suggested that the number should be 15 or 16. I talked earlier about a braver person than I am, and I must use the same words again: a braver person than I am would reopen the debate on local government configuration, which has already been decided.

The decisions arising from the review of public administration in relation to local government are designed to strengthen the role of local government in Northern Ireland and place it at the heart of local democracy. The Local Government Task Force, which is chaired by my honourable friend David Cairns, continues to provide the vehicle for the direct engagement of local government representatives in strengthening local democracy in Northern Ireland. Moreover, members will have direct input throughout the implementation phase. So although the debate on the number of councils is not open to discussion, there will be an opportunity to have input in how the seven councils are implemented.

The noble Lords, Lord Glentoran and Lord Shutt, and the noble Baroness, Lady Harris, mentioned schools. In answer to the noble Baroness, I do not know whether one unitary authority was considered, but I am happy to write to her if I find out any more about it.

On rationalisation, on 23 January the Department of Education published a consultation document, called A Policy for Sustainable Schools. The policy is based on the Bain review recommendation, including its minimum thresholds for urban and rural primary schools, post-primary schools and sixth forms. Its objective is to ensure that all children have access to high-quality education in fit-for-purpose facilities. The closing date for responses to the consultation document is 16 April 2007. The Bain review recommended that schools under the minimum enrolment threshold should be reviewed to ensure that they are providing children with the education they need and will continue to need in the future. The fundamental issue is quality of education. Of course, reviews must be handled carefully and sensitively, and the review will need time to be completed and will require engagement with the relevant education authorities. The Bain review did not identify a level of savings at this stage.

The noble Lord, Lord Shutt, talked about integrated schools. The figures quoted reflect the fact that there has been a re-profiling of integrated schools provision. The money has not been taken away from the integrated sector; it has been re-profiled—a rather difficult word—to specific projects. I shall give some examples of what that re-profiling involves. This year, for example, the

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Government have allocated £25 million for new capital development in integrated schools. On top of that, additional money will be put into supporting the ongoing running costs of integrated schools, and proposals for new integrated schools are under consideration. For example, the Minister for Education recently decided upon two development proposals for the establishment of new integrated schools.

Almost every time the noble Lord, Lord Glentoran, speaks on these budgetary and resource issues, he raises the issue of consultants. Following the publication of the Northern Ireland Audit Office report on the use of consultants in June 2004, the DFP issued revised guidance on the use of external consultants in February 2005, outlining a number of lessons contained in the report that could be applied across all departments to ensure that value for money was obtained when employing consultants. External consultants are currently being used on a number of key government reforms: the review of public administration and the water reform I have already mentioned, and NICS-wide reforms such as accounting systems, human resources and accommodation. They are also used on a range of major projects, including the new sports stadium at the Maze and on private finance initiatives.

The noble Lord, Lord Shutt, raised the question of the civic forum. The Office of the First and Deputy First Minister has made financial provision in the vote on account for 2007-08 for the civic forum being restored should devolution return. On railways, an issue which the noble Lord has raised in the past, the north-west railway link has sufficient resources to maintain existing services but, given the recent British-Irish Intergovernmental Council oversight report which acknowledged its strategic importance, a review is under way. The north-west clearly has great potential for tourism and that must be exploited. Translink plan to upgrade the track on the railway line between Ballymena and Londonderry. The work is intended to commence late this year, with an expected duration of two years.

On Ulster Savings and the use of money in closed accounts, another issue raised by the noble Lord, Lord Shutt, the outstanding Ulster Savings scheme liability is held within the Consolidated Fund on behalf of investors. It now stands at some £6.6 million. Payments are made on receipt of a valid certificate. The accounts are therefore considered closed as opposed to dormant. The £6.6 million remains liable for repayment. The Treasury plans to bring forward legislation on dormant bank and building society accounts on a UK-wide basis. It will not apply in the case of Ulster Savings, however, because those accounts are viewed as closed rather than dormant. The potential of the legislation on dormant accounts is to fund the community and voluntary sector, including in Northern Ireland. The noble Lord looks as though he wants to come back.

Lord Shutt of Greetland: There is an interesting point here. It is one thing for the Government to take a view on dormant bank and building society accounts, but that may go further and cover unclaimed insurance policies and unclaimed shares. An incredible amount is unclaimed, particularly in

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newly demutualised companies. There is no equity in a situation where those moneys must be used for charitable purposes. Goodness knows what the dormant sums must be in the National Savings Bank. There is a fine line between closed and dormant, and there are no staff left at Ulster Savings. How do people now knock on the door and say “Oh, by the way, I have a passbook here.”? I do not even know how that will work. I assume that it does work, because I thought that the figure was £8 million, whereas the Minister now says that it is £6.6 million. Perhaps some of the money has now gone, though huge efforts were made before the closure. The actuaries can look at how much there will be, because they know how the flow is going. But there will still be a considerable sum. It is right to use that money in Northern Ireland. Is that going to be a decision in the future for the devolved Assembly, or will it be a decision made here by the Chancellor?

Baroness Amos: I will write to the noble Lord, Lord Shutt, on the process for claiming. On the wider issue of the proposed legislation, my understanding is that the intention is that that legislation should be UK-wide, so it will apply to Northern Ireland. It will not be a devolved matter. I have also had a note which I do not entirely understand, but I will read it anyway. The proceeds of Ulster Savings, like National Savings, are already invested in support for public services.

Lord Shutt of Greetland: What does that mean?

Baroness Amos: It would be better if I wrote to the noble Lord on the process. The legislation on dormant bank accounts is intended to be UK-wide. If I can throw any further light on the issue of dormant versus closed accounts, I will do that as well.


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