I hope that all of you had a very happy, healthy and safe holiday period and I hope that this coming year of 2025 brings you health, happiness and success. It’s also an appropriate time to look back and remember our absent friends and family.
Unlike this time last year, we now have an Executive and Assembly up and running which is to be warmly welcomed. The Association has responded to the NI Executive’s draft Programme for Government which was launched at Parliament Buildings back in October with great fanfare and optimism by the four main Executive Parties.
We do know however that all was not tea and buns around the Executive table with some parties not happy with what was included in the 9 priorities and what was not. Simply put though the 9 priorities are all “motherhood and apple pie” and nowhere in those 9 priorities does it contain the agreement to make the difficult decisions that will help “supercharge” our economy and give this place the type of vibrant, caring and progressive that the people and businesses deserve.
All of us in the business community and particularly within our own construction materials sector know that we punch way beyond our weight in the wider UK and global economy. Yes, and we have achieved that, not because of our politicians, but in spite of them!!
Best Performing
Our local economy and mineral products sector had a reaseasonably strong 2024 and this has been reflected in the local labour market which continued to perform strongly, particularly in the first half of the year, being one of best performing UK Regions.
Activity levels across the construction sector have been volatile in the year to date, but more recently growth is returning. In particular, workforce jobs in the 12 months to June 2024 increased by 16.3% and October saw an increase in new business (as per the PMI).The increase in public investment announced in the recent Autumn Budget was also positive and should provide a much needed boost in the medium term. However, recent surveys indicate that clouds on the horizon are starting to appear! Latest Regional Growth Tracker data from Ulster Bank pointed to a slowdown in growth in the Northern Ireland private sector in November.the coming months will be key in determining whether we are seeing a temporary soft-patch or the start of a more worrying downturn.
Industrial Derating Policy
Recently Finance Minister, Dr Caoimhe Archibald, has confirmed that the immediate threat to the continuation of Industrial Derating Policy has been lifted.
In a statement to the NI Assembly she announced a conclusion to the rates element of the revenue raising consultation she inherited from the previous, Direct Rule, Secretary of State which could have resulted in significant changes to what and how much rates are collected from businesses and domestic properties.
Alongside the confirmation, the Minister announced that over the next 10 years all rates reliefs will be reviewed to ensure there is alignment with the objectives of the Executive starting with Small Business Rates Relief (which mineral products manufacturers do not receive as they secure industrial derating instead).
This means that, at the earliest, it will be 2027 before any significant change will take place around the relief which manufacturers secure.
MPANI members and NI Manufacturers everywhere engaged with the process and Manufacturing NI and MPANI together provided the Minister, Department and Land Property Service with a substantial body of evidence which should why this relief was important in delivering the Executive and Economy Minister’s 4 priority areas of good jobs, which are regionally dispersed in a more productive and decarbonised economy.
The Minister also announced the commissioning of research into the costs of doing business which we will fully engage with.
We thank the Minister for her attention, including directly engaging with Industry and visiting manufacturing businesses, and concluding that the rating system is an important part of securing the economy which the Executive wants. The Minister’s approach is both sound and strategic and offer our support.
Highway Maintenance
As reported in the last column for PCE, I highlighted the intensive lobbying that MPANI were engaged in to support our Highway Maintenance and Construction members. The October monitoring round has now come and gone with a total of £14 million being allocated toward roads maintenance. MPANI continue to raise concerns and offer solutions to the shortfall in Departmental resources which is constraining work loads and endangering jobs.
We raised these concerns when we met with the Assembly Infrastructure Committee and the DfI Permanent Secretary, Denis McMahon back in November. Also, at our liaison meeting on the 3rd December we discussedwith the Department the possibilities for the January 2025 monitoring and the plans for works in the new 2025/26 financial year which will hopefully see the start of multi-year budget cycles.
The Association has also been engaged in a number of discussions about reform of the planning process. I was recently part of the CBI Infrastructure Group who met with Rosemary Daly, Director of Regional Planning Legislation and Governance, at which we discussed the importance of planning reform. Rosemary outlined a number of constraints and challenges including moving towards a properly resourced planning system as well as a high level of vacancies across the planning system.
Key actions for the Department include:
-Engaging each planning authority to understand reasons for delays and identify solutions, collaborating with SOLACE and looking at best practice in Scotland, England, Wales and the RoI on planning improvement.
-Financial sustainability of the system is also being examined. The Department have made a transformational bid – this could potentially cover the cost of independent inspectors stepping into supplement the work of the Planning Appeals Commission.
The Department officials emphasised the need for consistent frameworks which they will need planning authority buy into. They are exploring better training for planning officers, and the potential role of AI in the consultation process. The importance of accountability and independent oversight was also highlighted. They have been working on a Validation Checklist to help with improving the quality of planning applications entering the planning system. They are planning to review the role of various stakeholder groups relating to planning issues as well.
Interim Regional Planning Commission
Diana Fitzsimons, CBI rep on IRPC, provided an update to the Infrastructure Working Group, mentioning that the IRPC (Interim Regional Planning Commission) has been meeting since Feb 2023, initially quarterly but now more frequently.
During that time there has been a complete turnover in Departmental staff on the Commission and a new Minister. She noted that the IRPC minutes are available on the DfI (Department for Infrastructure) website. At an IRPC review workshop in May 2024, members of the Commission representing environmental, community and business interests, said they were keen to have a greater role than just signing off departmental planning improvement plans already in place. Although not a DfI responsibility, the Planning Appeals Commission was coming under increased criticism as holding up the planning system and there was a NIAO review of the PAC coming up. There was some support amongst planning professionals for the PAC to move from the Dept of Justice to the Dept for Infrastructure.
Diana frequently emphasised to the Commission the list of planning processes that the CBI wanted improved. These were set out in the April 2023 minutes at Annex 1. She had called for a Sixth Sigma approach to major planning applications, similar to what had been successfully done for minor applications in Belfast City Council. She had asked for local authority case studies of major planning applications to add to those gathered by her for the CBI. Diana stressed the importance of addressing the “culture” of the planning system to become more collaborative with applicants and their consultants and pride where timelines and quality outcomes were achieved by individual planners. She had suggested a shared services approach on technical matters between Councils.
The IRPC now has a programme of work which is looking at best-practice elsewhere and looking at Local Authorities’ internal reviews of development management and plan making. The Commission has validated uplifts in fees and there is action behind the scenes on elements of the Department’s Planning Improvement Programme. The long-term financial sustainability of the planning system is a priority, but this is not necessarily about putting people behind desks.
Continuous training and retaining experienced staff are key. Digital transformation etc is needed. Interesting to note the new legislation being introduced in RoI on Statutory Timelines with fines for breaches and also limiting access to Judicial Review.
RoI has the Office of the Planning Regulator (OPR) which deals with a variety of matters and helps reduce timescale for approving development plans. The appeals authority (An Bord Pleanala) has been through a difficult period with governance issues and a backlog of appeals. It has recently increased staffing and improved governance measures and will be prioritising housing and renewables appeals.
Quarry Extensions
I recently met with Liam McEvoy and Daniel Healey of DfI Roads Planning Development team to discuss a number of issues but in particular the Departments officials approach to quarry extensions and non-intensification of use.
Liam said that his officials base their position and comments purely on the information received from the applicant and if it is clearly shown there is no intensification then they will have no objections and will respond accordingly.
They also use previous information submitted specific to sites and will assess if the access onto the highway is suitable. This could happen where a site has been working on an old planning permission and the vehicle access has never been upgraded to modern standards.Laim and Daniel were very open and said that if members experience is different to please come back to them and they will investigate to ensure consistency in the DfI approach.
Three independent experts have been appointed by DAERA Minister Andrew Muir to conduct a review of environmental governance in Northern Ireland, including considering options for an independent environment protection agency.The panel will be chaired by Dr Viviane Gravey, a senior lecturer in European Politics at Queen’s University. Dr Gravey will be assisted by Diane Ruddock, who has recently retired from the National Trust and John McCallister, who is a current member of the Ulster Farmers’ Union.
For more information click https://www.daera-ni.gov.uk/news/minister-muir-announces-independent-review-strengthen-environmental-governance
MPANI has in the past supported the formation of an expert led Independent Environmental Protection Agency. To view our and other responses to a previous consultation on the formation of an independent EPA in 2007 click here- https://niopa.qub.ac.uk/bitstream/NIOPA/5138/1/Env%20Governance%20Synopsis%20of%20Responses.pdf
Reportable Incidents
At our recent MPANI health and safety committee meeting Brian Price of HSENI reported that in 2024 there have been 33 reportable incidents to date in the Extractive Industry – 17 major injuries, 14 over-3-day injuries and 2 dangerous occurrences.
The Workplace Health – Exposure to Dust initiative has commenced with a number of visits completed. It is planned to complete 25 visits. These should be completed by early January 2025. This initiative will be picked up again as part of the wider HSENI Health Campaign scheduled for 2025-26 when further visits will be completed. A prestressing initiative will commence in January 2025 and will involve HSENI visiting all premises involved in prestressing.
Membership
If you’re interested in becoming a full or affiliate member of MPANI and get access to up to date Industry news and guidance don’t hesitate to give me a call on 07876136929. It would be great to have you on board.
May I wish you all a safe and successful 2025.
