Dodds targets almost £70m to assisting low-income households and local industry
Monday, 15 December 2008Finance Minister, Nigel Dodds, has announced a package of measures designed to support local business, including the construction industry, and low-income households.
The Executive’s response to the current economic difficulties will target almost £70m towards key groups and will see the introduction of a number of additional measures, including a freeze on non-domestic rates, aimed at boosting local businesses at a critical time for the economy.
Speaking after he announced the details to the Assembly, the Minister highlighted the fact that this package would help people who are suffering financial hardship in the short-term, whilst also focussing on measures that would provide longer term benefits to the economy. The Minister said: “Today’s announcement is good news for low income households. On a day when we see the price of gas and electricity falling, I am able to make £15m available for a fuel poverty package that will help the most vulnerable in our society.
“This money will allow £150 to be credited to the electricity accounts of those 100,000 households on income support or pension credit.
“This move is in recognition of the fact that, whilst the fall in energy costs is welcome, the Executive realises that more needs to be done in the current economic environment to help the many people who are currently facing financial hardship.”
The Minister also signalled his intention to introduce a scheme that would provide a rate rebate to those that carry out energy efficiency improvements to their homes, enabling more householders to benefit from reduced home-heating costs.
The Minister also detailed a package of measures aimed at boosting two key areas of the economy; the construction industry and the small business sector and said: “I have listened carefully to the concerns of both these sectors in recent months and am pleased to move in response.
“The construction industry has given me the message that it wants to ensure that major construction projects are delivered to the market place as quickly as possible. Unfortunately, many of these projects could potentially have been stalled due to litigation brought against the frameworks through which they were to be delivered.
“Therefore, I am able to announce today that projects scheduled to go to the market via the frameworks should now proceed on a project by project basis.
“This means that, construction projects worth some £115m will now be able to proceed to tender by March 2009. These projects cover, amongst others, major projects relating to schools and colleges and will not only benefit the construction industry, but also local communities who will not see important capital works delayed unnecessarily.
“In addition I have, following the Pre Budget Report, the opportunity to accelerate £9.4 million capital investment into the present year (2008-09). I am pleased that the Executive has agreed to my proposal that the full amount is accelerated for this year. This means that we expect total capital investment to exceed £1.5billion this year. This represents the highest ever investment in local infrastructure.
“To specifically assist small local businesses access the many opportunities currently available, I have decided to implement a single e-sourcing system for procurement. This will lead to a reduction in the time and cost of bidding and streamline the procurement process. I have also decided to establish a Procurement Task Group under the Construction Industry Forum, to work with the industry and help all firms, including small local firms, understand public procurement requirements.
“In addition, I am able to announce as part of this Monitoring Round a further £28.3m for projects that will directly benefit the construction industry.
“I am allocating £20m to the Farm Nutrient Management Scheme. This money will allow for more construction activity to be completed under the programme. Notably, 40% of the funding for these projects comes from farmers, so the value to the construction industry of this scheme alone is considerably higher.
“Furthermore, £4m will go to additional funding for Schools Maintenance, £2.5m for Road Structural Maintenance and £1.8m for Public Transport Capital Works.”
“On the wider business front, industrial rates have been frozen at 30%, which I am sure is already providing a welcome boost to many in the manufacturing sector. In addition, rate relief is also being provided to those in the freight and transport sector, which is benefiting many of our important docks and transport companies.
“However, I intend to provide further support to local business through further changes to the rating system.
“Today, I announced that I intend to bring forward a proposal for new legislation to allow a targeted small business rate relief scheme to be introduced. Importantly, this would be funded centrally and not by charging other ratepayers more.
“But I believe it is necessary to give further help which will take effect as soon as possible. Therefore, I have decided that non-domestic rates should be frozen in cash terms for 2009-10, further enhancing the competitiveness of local firms, protecting jobs and incomes and representing a real saving for all hard pressed businesses operating during difficult times.”
The Minister also announced that a further allocation of £5 million will be made to the Department of Social Development for the housing programme.
In conclusion, the Minister underscored the importance of the work the Executive has already undertaken: “Since the return of Devolved Government last year, locally elected representatives have been able to respond to the needs of their own communities.
“We have introduced a number of rate relief schemes to help the most vulnerable in society, we have deferred water rates and frozen the domestic regional rate until 2011. Prescription charges will soon be abolished and all pensioners can now travel free on public transport. Indeed households are on average £1000 a year better off than they would have been under Direct Rule.
“Businesses have benefited too from the roll-out of the Investment Strategy committing £20bn of investment over the next ten years, in fact 2007/08 will see the largest investment ever in infrastructure projects.
“The current economic situation highlights the importance of the Programme for Government and its focus on building a strong local economy. What today’s announcement does is to build on the ongoing work of an Executive that is delivering practical support for the business community and the people of Northern Ireland."
Read the Minister's statement, (PDF 53KB)
Notes to Editors
Details of the financial allocations made in the December monitoring process:
- £20.0 million to the Farm Nutrient Management Scheme which has acted as a buffer to the construction sector from the downturn in the property market. These funding will allow for the completion of the schemes in which 40% of the funding comes from individual farmers thus leveraging in further support for construction firms.
- £4.0 million additional funding for Schools Maintainance. £2.5 million for Roads Structural Maintainance and £1.8 million for Public Transport Capital Works.
- £15 million for Fuel Poverty which will provide for a £150 payment for those households in receipt of income support [or income based Job Seekers Allowance].
- £0.5 million for Flooding Hardship for Agriculture
- £0.7 million for the Fishing Industry - in respect of harbour and light dues
Almost £20 million of current expenditure to address a range of other pressures identified by departments.
- £1.6 million to DHSSPS for Children Funds following agreement from the relevant Ministers as to the highest priority projects.
- £5.0 million to DHSSPS for Budget Flexibility representing the third tranche of up to £20 million of available funding to be allocated to that Department during the year.
- £4.0 million as a further contribution to the increased cost of the Special Purchase of Evacuated Dwelling scheme.
- £3.0 million to address pressures across a range of business areas in the Department for Regional Development.
- £2.6 million to the Department of Education to fund the back pay and increased pay costs for part-time Youth workers following agreement on a revised pay structure.
- £2.0 million to the Department of the Environment in respect of lost income for the Planning Services from the lower than expected development activity.
- A further £1.5 million to the Department of Agriculture to address pressures in respect of Animal Health as the rising market price of animals has implications in terms of the level of compensation payments.
A further allocation of £5 million was also made to the Department for Social Development in respect of the housing programme.
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