HL Deb 02 December 1986 vol 482 cc786-8

8.20 p.m.

Lord Lyell

My Lords, I beg to move that the second order before us this evening, the draft Enterprise Ulster (Continuation of Functions) (Northern Ireland) Order 1986, be approved. It was laid before us under the Northern Ireland Act 1974. Enterprise Ulster was established as a corporation under the Enterprise Ulster (Northern Ireland) Order 1973. This gave Enterprise Ulster powers to undertake works of environmental, amenity, cultural or social value for the purpose of creating employment in Northern Ireland. We hope that Enterprise Ulster will employ an average of some 1,200 employees in the course of the present financial year.

However, I am sure that your Lordships will agree that the work of the corporation is being hindered by the fact that its authority to undertake new project works lapsed on 31st March 1986. If action is not taken to rectify this position, Enterprise Ulster will begin to run out of sufficient work to keep its workforce gainfully employed. There is a degree of urgency in this matter arising from the recent introduction of a programme of initiatives through which the corporation aims to reduce job costs over the next three years.

The programme needs to diversify into a much wider range of projects permitted by the 1973 order than the corporation has hitherto been accustomed to undertaking. Unless Enterprise Ulster's powers to engage in new work are restored at the earliest opportunity, progress on the achievement of the projected savings in job costs will be limited, and as a consequence the number of jobs it is hoped to provide will have to be reduced.

The simple purpose of the draft order before us this evening is to restore the authority of the corporation to undertake new project work and to remove the limitation on the duration of that authority for the future. The order will enable Enterprise Ulster to maintain its valuable contribution to the alleviation of the high levels of unemployment which we are currently experiencing in Northern Ireland. I commend the order to your Lordships.

Moved, That the draft order laid before the House on 18th November be approved.—(Lord Lyell.)

Lord Graham of Edmonton

My Lords, I simply rise to say that we on this side fully support not only the renewal of the order but the manner in which the Minister has introduced it. Can the noble Lord give us one or two illustrations of the new projects which it is possible may be included? If one looks at the order under the heading "Continuation of certain functions of Enterprise Ulster" we refer to: The functions of Enterprise Ulster under Article 4 of the Enterprise Ulster (Northern Ireland) Order 1973 shall, so far as they relate to new, projects for the carrying out of works or activities". I wonder whether the Minister can give us some idea of the kind of new projects which he knows from conversations or consultations are in the pipeline? That is the only question that I wish to ask.

Lord Hampton

My Lords, I too thank the noble Lord the Minister for introducing this order. The stated aims are admirable and I shall not go over them again. They are to undertake works of an environmental, amenity, cultural or social value in order to create employment in Northern Ireland. We are told that its authority to accept new project work expired on 31st March this year. I should like to ask the Minister three questions. First, why was this lapse allowed to occur particularly as no extra public expenditure is anticipated? Secondly, have any new projects been held up, and if so what? The noble Lord, Lord Graham, touched on this matter. Thirdly, I should be glad to be reminded as to what the allowed annual budget for Enterprise Ulster is?

Lord Lyell

My Lords, I thank the noble Lord, Lord Graham, and the noble Lord, Lord Hampton. The noble Lord, Lord Graham, wanted me to specify any of the extra duties that can be carried out by Enterprise Ulster. I understand that there certainly would be new projects in the social and amenity fields. These would be, as I understand, such matters as small repairs to buildings and houses and matters of this level, but on a fairly small scale. I understand that there are no specific new projects yet lined up.

This order before us this evening is principally in the nature of being permissive since the original order about which I spoke, the Enterprise Ulster (Northern Ireland) Order 1973 in Article 12 is marvellously headed, "The cessor of functions of the Corporation". It says: The functions of the Corporation under Article 4". this was written in 1973— so far as they relate to new projects would cease on 31st March 1978". That originally provided for a span of about five years. I understand that the order was renewed again in 1983. However, this time it was for only three years, because the order was not seen as being absolutely necessary, and its lifespan in 1983 was perceived as being necessary for only three years. This has not been the case. That is why we are moving the order tonight. There will be no finite date. The order tonight will permit Enterprise Ulster to carry on with whatever projects are permitted by the original order in 1973; however, not for a specified period of three or five years but for the foreseeable future. That is the reason we have the order before us this evening.

I am not able to spell out to the noble Lord, Lord Hampton, what harm has been done by the gap between 31st March this year and today when we are moving the new order. However, I understand that the Enterprise Ulster has been able to continue to function. But we wish to have the powers to carry on any new projects which might come to hand.

On the budget, I am afraid that I do not have a figure regarding how much is spent. Perhaps I may write to the noble Lord. I was able to tell the noble Lord that we aim to maintain 1,200 jobs this year. The new probationary wage of £75 per week for new recruits will give some indication of the costs. Of course, they are only the wage costs. They do not take into account administration and the support costs for Enterprise Ulster. I am extremely grateful to my noble friend. I understand that it is in the region of £7½ million. Indeed the exact figure I have is £7.465 million. That will be the cost of Enterprise Ulster this year.

Once again I promise that if I have missed any questions from the noble Lords, Lord Hampton or Lord Graham, I shall certainly write. However, I think that it would be the wish of the House that I should commend the order to your Lordships.

On Question, Motion agreed to.