South and East Belfast Sinn Féin -- Building an Ireland of Equals

Alex Maskey welcomes Martin McGuinness' proposals to tackle household burden

Published: 15 September, 2008

Alex Maskey welcomes Martin McGuinness' proposals to tackle household burden

Alex Maskey, Sinn Féin MLA for South Belfast has welcomed today's proposals from deputy First Minister Martin McGuinness to tackle the increasing household burden.

Martin McGuinnes has today written to the First Minister Peter Robinson outlining a number of proposals aimed at tackling the growing burden on households arising from rises in the cost of fuel prices, electricity and gas.

Mr McGuinness is seeking the agreement of all Ministers for the proposals in advance of the meeting with the British Prime Minister Gordon Brown on Tuesday.

Speaking this evening Mr McGuinness said:

"The impact of the global economic downturn and with it the rises in costs of food, fuel, electricity and gas on ordinary households and businesses is an issue which requires the attention of all Ministers.

"I have today written to the First Minister Peter Robinson outlining a series of measures which I believe can help ease this burden. While I recognise that the economic crisis is global and outside our control, particularly given the very limited resources and absence of fiscal powers available to us, I feel that we must bring forward a package of measures which would bring immediate and meaningful relief to those affected most by the current situation

"I am seeking agreement from all Ministerial colleagues on these proposals in advance of Tuesdays meeting with the British Prime Minister Gordon Brown."

Alex Maskey added

"I welcome this development brought forward by Martin McGuinness, to ease the financial burden on homes across the north of Ireland. While the global economic crisis is outside of our control, and we do not have fiscal responsibility, these measures can offer some relief to families that need it the most, during the growing economic crisis." ENDS

Note to Editors

The proposals being put forward by Mr McGuinness include:

  • The indefinite deferral of domestic contributions towards water and sewerage services.
  • The establishment of an emergency fund to address fuel poverty.
  • Making the redirection of departmental spending efficiencies and unspent money across all Departments a priority of the September Monitoring Round.
  • The establishment of a Ministerial sub-group on anti-poverty.
  • The initiation of a benefits entitlements uptake campaign.
  • Completion of the joint DARD/DSD 'Warm Homes Scheme'.
  • Commissioning of a bulk buying scheme for oil.
  • Piloting renewable energy schemes in government buildings.
  • Establishment of a Special Relief Scheme.
  • Convening roundtable meetings with the social partners.
  • Development of joint initiatives with the Irish Government.

14th September 2008

Mr Peter Robinson MP MLA

First Minister

Stormont Castle

Belfast

Peter a Chara.

As you know, the developing economic crisis has impacted on every household, especially after the recent increases in electricity and gas.

I believe that we must respond to the economic downturn and bring forward initiatives to alleviate the immense financial pressures on ordinary citizens and on business. The choice facing some in our community is that they 'heat or eat'. We also have to maintain services affected by additional energy costs and our industry needs to remain competitive in the face of these increased costs.

While I recognise that the economic crisis is global and outside our control, particularly given the very limited resources and absence of fiscal powers available to us, I feel that we must bring forward a package of measures which would bring immediate and meaningful relief to those affected most by the current situation.

I am proposing that we seek the endorsement of other Ministers for the following measures, in advance of our meeting with the British Prime Minister on Tuesday:

1. The indefinite deferral of domestic contributions towards water and sewerage services.

Both our parties have already discussed and are agreed upon the need for a deferral of domestic contributions towards water and sewerage services. This could save households an average of £7.50 per week from April 2009. We should look to extend this beyond the current year.

2. The establishment of an emergency fund to address fuel poverty.

This would involve giving every fuel poor household a one-off payment of £200 minimum. At least £45 million would be required to help all fuel poor homes. Existing mechanisms can be employed to deliver relief, for example, rate relief system, Social Security, NIHE. A precedent of one-off flood payments has already been established. Sources of funding for this emergency fund could include redirecting the British Treasury windfall of £15m on home heating oil and £25 million on petrol/diesel (Consumer Council estimates) which are additional to the Treasury from here in the past 12 months. Contributions could also be negotiated from the energy industry out of non-regulated finances which include the electricity generators and supply companies.

3. Making the redirection of departmental spending efficiencies and unspent money across all Departments a priority of the September Monitoring Round.

The priority within the September Monitoring Round should be to redirect resources towards those with the greatest objective need and maintain essential services affected by increased energy costs such as schools and hospitals.

4. The establishment of a Ministerial sub-group on anti-poverty.

It is critical that we continue to develop additional measures to address the needs of those adversely affected by the economic down turn. All departments must be asked to bring forward initiatives, including those requiring cross-departmental co-operation, which will impact both in the short and long term in a way which alleviates the hardship which the less well off are enduring.

5. The initiation of a benefits entitlements uptake campaign.

While the rate of benefit take-up is improving it is recognised that many income related benefits such as Income Support, Pension Credits, Jobseekers Allowance and Housing Benefit remain unclaimed. Ensuring that people get the financial support to which they are entitled should be a key priority.

6. Completion of the joint DARD/DSD 'Warm Homes Scheme'.

This initiative, which affects 600 rural homes, has already been commissioned but has been stalled due to lack of funds. I understand that the Minister of Agriculture Michelle Gildernew and the Minister for Social Development, Margaret Ritchie, are agreed on making the required funds available.

7. Commissioning of a bulk buying scheme for oil

NIHE and the Consumer Council are already scoping this proposal. 70% of homes use oil for heating. I am proposing that it is taken forward immediately.

8. Piloting renewable energy schemes in government buildings

While renewable wind and wave energy have substantial up-front costs and are more long term, the use of alternatives such as wood burning pellets and biomass cost substantially less and have made great advances locally. By exploring the option of converting government buildings to renewable heating systems, government could kick start a market which would give some of our agricultural industry an incentive to diversify into the production of energy crops.

9. Establishment of a Special Relief Scheme

Social Tariffs and Hardship Trust Funds can be used as a means of introducing a Special Relief Scheme which could be operated through the Fuel Poverty Taskforce. This is a longer term measure but will be necessary as higher living costs will pertain for some time.

10. Convening roundtable meetings with the social partners

Local industry has been pro-active also in focussing on the significant pressures effecting competitiveness and productivity. Inflation and unemployment statistics underline the deepening economic difficulties. As well as the series of meetings which we are currently under-taking with wider social partners, we should immediately convene trilateral meetings of business leaders, trades unions and government to adopt a joint approach to this issue. In this context we should explore the possibility of initiatives to help the competitiveness of industry.

11. Development of joint initiatives with the Irish Government

It is vital that we meet at the earliest opportunity with An Taoiseach, Brian Cowen, to discuss the economic downturn across the island and explore how the two governments can co-operate on the basis of mutual benefit to generate economic activity and alleviate hardship throughout the island.

Is mise

Martin McGuinness MP MLA

deputy First Minister