I support the Bill as presented, and I welcome the accelerated passage afforded to it today.

The Assembly must react to the economic climate in which we find ourselves. We need to support our existing small businesses and encourage any potential new small business by the introduction of the Rates (Amendment) Bill and any forthcoming initiatives that go with it. The economic downturn has been difficult for a range of sectors, but it has hit our small businesses particularly hard. When walking through towns in my constituency of East Antrim, such as Larne and Carrickfergus, I find its effects very visible and very worrying. Other Departments are working on master planning for our provincial towns, with streetscapes and public realm schemes. However, if closure rates continue, particularly in the retail sector, those planned works will not matter too much. Although the Bill will not resolve the problem, it can take a small but meaningful and significant step towards trying to sustain town centres. In particular, where larger retailers have been sucking the blood out of town centres, it is time to put something back. Hopefully, the sacrifice made by larger businesses is understood on one hand and appreciated on the other.

Although this is the Second Stage of the Bill, there has been fairly substantial consultation and, indeed, public debate on it over the past few months. Hopefully, now, everyone has had their say, drawn conclusions and formed opinions. It is known that more than 98% of businesses in Northern Ireland employ fewer than 50 people. That is just less than half of the number of businesses that are registered for VAT purposes as having a turnover of less than £100,000. Therefore, small businesses are a crucial sector in the economy. Their contributions are vital to development in communities and will drive and support employment growth.

The additional support that any future expanded small business rate relief scheme is offering is around £6 million per year. There is no doubt that that will go some way towards helping the quoted 8,000 businesses in 2012-13. In Carrickfergus, where I am based, it is estimated that more than 300 small businesses in the borough will be beneficiaries of the scheme. That is an estimated 50% increase in Carrickfergus and, likewise, in Larne.

The large retail levy will affect, as the Minister has indicated with updated figures, 23 companies with 75 properties. Obviously, that includes Asda, Sainsbury’s, Tesco and other department stores. The average rates bill of those affected will be £66,000, as we have already heard. To put that into perspective, one large retailer — Tesco, I believe — was listed as having a £24·4 billion market capitalisation as of 15 January 2012. Therefore, £66,000 per annum can, surely, be absorbed by the multinational company over the three-year period. Indeed, many would already have been paying substantially more had rates review taken place before now. We appreciate and acknowledge the importance of multinationals to Northern Ireland’s economy and the positive impact that they have had on employment, and we want to continue to support their growth and sustainability. However, we would struggle to say that large businesses are in the same vulnerable position as small businesses.

Ten years ago, you would probably have had to travel some distance to find a Tesco, Sainsbury’s or Asda. Now, they have at least one large retail unit in virtually every provincial town. If you take a walk through most town centres today, you will find it difficult to say that they need another multinational. The evidence is clear from the boarded-up shops, derelict buildings and smaller retail outlets. Businesses are required in those centres. That is why my party welcomes clause 2. Even aesthetics would be improved by its provisions on shop windows and frontages.

Businesses, such as coffee outlets, shops, offices, restaurants and community facilities add footfall, vitality and liveliness. Improving the built environment and retail outlets in towns would attract a greater number of visitors and tourists to spend money in communities. The Rates (Amendment) Bill is a small but important step to try to help the sector. It is for those reasons that I urge the Assembly to support the Bill. My party is not saying that the Bill will rectify the problems faced. However, it will be an important step towards addressing the cost base and the very survival of the small business and retail sectors.

Many good points have been highlighted and arguments made with regard to the scheme’s boundaries and which businesses should be included and which should not. Lines have to be drawn somewhere. The scheme has reached the best balance possible at this stage. I welcome the Bill, and I look forward to the Minister's response.

During Assembly Question Time, David Hilditch asked the Minister of Finance and Personnel: 

With regards to the private sector and the need to grow that sector. Does the Minister have any further comment on the Invest NI decision? 

Sammy Wilson  (DUP)

It is unfortunate that the money that Invest NI had been hoping to spend on job promotion has not been fully spent this year. Of course, that is not a reflection on the work that is done by Invest NI and by the Minister of Enterprise, Trade and Investment; it is because a lot of that funding has to be matched. If firms cannot find resources, get money from banks or, in some cases, do not have the confidence to invest, there is not a great deal that can be done about that. I want to make it clear to the House that we have reallocated the money to projects that will create jobs. Job opportunities will not be lost as a result of the money not being spent. For example, when we put money into roads maintenance or the thermal insulation of Housing Executive houses, that creates jobs in the construction sector. When we put money into DEL for the Steps to Work programme, that brings people into training and gives them job opportunities and the ability to move into longer-term employment. It is not the case that money suddenly drops into a hole and there is no job creation from it; we are simply moving it from the DETI budget to other budgets, and different kinds of job are being created.

David Hilditch asked the Minister of the Environment for his assessment of the effects on the environment of the coastal erosion at Quarry Cottages, Whitehead, Carrickfergus.    

 Alex Attwood (Social Democratic and Labour Party)

I thank the Member for his question. I know those cottages because I did not live very far from them and I worked in that area. I am also aware of the localised erosion that impacts on the small number of local residents who use the pathway. At this stage, my advice is that there are no significant environmental consequences but I would like to hear more from representatives of the area

I thank the Minister for his answer. The question was tabled to highlight the predicament and, perhaps, frustration of residents where the vital link to the town of Whitehead is now down to around 15 in of a path and in a dangerous state. I was wondering whether the Department could help by maybe at least getting some stakeholders together to try to come to a resolution. I know that it is probably a cross-departmental issue, but since it began with coastal erosion, I was hoping that the Department of the Environment, would take a lead.

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Alex Attwood (Social Democratic and Labour Party)

It would be difficult for me to take a lead on that matter because it does not technically fall to my Department. I will, though, bring it to the attention of other Ministers and Translink in particular. Given that there is a railway line along the Antrim coast from Carrickfergus to Whitehead and beyond, and given the need to maintain that, which is the single biggest asset of the coastline in that area, I will bring the matter to Translink’s attention to make sure that it is aware of the erosion and to determine what remedies, if any, it thinks appropriate.

I welcome the fact that we have been able to bring this matter forward today, as it coincides with the time of year when demand for a short-term loan system is at one of its highest levels, as has been stated. I welcome and note the comments of colleagues so far. We need to get a handle on the current situation.

This type of business is nothing new. It has existed one way or another through the ages. However, where we currently sit, it is probably at its most expansive ever, with the marketing side of the business flooding our society with material. Quite frankly, it is in your face daily. We heard the statistics that Mr Nesbitt gave.

The motion is pitched at just the right level. Although we are aware of our responsibilities in the devolved Administration, we have concerns and it is imperative that we engage with Her Majesty’s Government and the Financial Services Authority on this matter to ensure fair interest rates and protection for people who engage with those companies.

Regulation is crucial. Since the motion was laid in the Business Office, I have had the opportunity, on several occasions, to engage with folk who are users of the short-term payday loans system, and I have seen how it impacts on their lives. That is from a negative and dire situation through to, perhaps, a lesser percentage of people who make it work for them in a positive way but with strict discipline and controls on how they manage their personal situations. Unfortunately, not everyone falls into the latter bracket and, more and more, it is the desperate, needy and most vulnerable with spiralling debts who are drawn into the system by taking out expensive short-term payday loans, trying to give themselves a breathing space and a short period of reduced pressures. However, they are building on an already weak financial foundation and are putting off the inevitable collapse.

Most of us will have a fair insight into the extent of the problem through the issues and related matters brought to us through our constituency offices. Although I mentioned people who use the payday loans system to their advantage in a calculated, measured and disciplined way, it is due to our concern for those who are desperate, victims of the economic climate and the credit boom of the past era, whose circumstances are now spiralling out of control, that we support the motion. It is clear that it is the despairing group of people that I mentioned who are being targeted, and we are concerned at the number of companies that have sprung up across Northern Ireland recently at a somewhat hurried and aggressive rate.

We have established that banning such shops and their services will not get rid of the need of those who want to borrow small amounts of money nor will it solve any of the problems of those who are in financial distress. In fact, throughout November, those shops and on-line services saw a 23% increase. Banning them would just mean that people who are struggling would go to informal loan sharks, who make the payday loans companies look like angels. There is no regulation of those loan sharks and, obviously, they resort to other means to get their money back.

A better solution would be to ensure that fair interest rates and protection are offered to people taking out such loans. Bankruptcy or binding arrangements on creditors could also be made much easier. In that way, lenders would take more care and time in giving credit to people who cannot really afford it. It is absurd that those shops can apparently make a decision on who to lend to within an hour of an application form being submitted.

I urge the Executive to protect vulnerable people and to be mindful that the Christmas period will force even more low earners further into debt. Anyone in negative equity or in a job and struggling with their debts should, perhaps, be filing for bankruptcy and not borrowing more. It is essential that appropriate action is taken now to ensure that the right advice is given to find a sensible long-term solution to the debts in our constituencies. Borrowing more with high interest rates is definitely not the answer, however small the amount.

We need to get the message out that people need to keep well clear of payday loans. We need to instil an attitude of, “do I need it right now or can I get it in two to three months’ time when I have saved for it?” There is fierce marketing of payday loans, and we have seen the shop-front advertising of the money shops, gold shops and cash converters. Those, and the online services being advertised, need to be addressed sooner rather than later.

We want to ensure that vulnerable people are properly protected, and the Executive are working with the financial industry and consumer organisations to ensure that people have the protection that they need. I support the motion.