Debate contribution: The draft Renewable Heat Incentive Scheme (Amendment) Regulations (Northern Ireland) 2024
Debate contribution by Ms Diana Armstrong on .
- MLA
- Ms Diana Armstrong
- Party at the time
- Ulster Unionist Party
- Date
- 21 October 2024
- Type
- Debate contribution
- Business
- Executive Committee Business
- Heading
- The draft Renewable Heat Incentive Scheme (Amendment) Regulations (Northern Ireland) 2024
- Assembly identifier
- Official Report component 4604113
Read the official Assembly record
Text
I thank the Minister for his statement on the renewable heat incentive scheme. Like many other Members who have addressed the Chamber today, I have watched with dismay at how that flawed scheme has unravelled and at how badly it has affected the credibility of governance and scrutiny in this place. At every stage from its creation, the RHI non-domestic scheme has been plagued by dysfunction. That has created an understandable lack of confidence in the ability of government to deliver solutions that adequately address concerns. The move by the Minister to progress resolution by urgent procedure at the end of July has only created further concerns for participants. RHI has damaged not only public confidence in governance but the livelihoods of those genuine users, including farmers, retailers and care home and hospitality operators, who saw an opportunity to support a renewable energy scheme that encouraged them to invest substantially in the installation and maintenance of biomass boilers over the long term. Many stretched themselves financially, assured that the tariffs would deliver sustainable incomes over the lifetime of the scheme. Those tariffs were even guaranteed in a letter by a former Member of this House to financial institutions. However, the reality has been quite different. Those who participated in the RHI scheme with genuine intent have been living a nightmare scenario of financial hardship since the scheme unravelled. Participants who legitimately invested in renewable heating technologies found themselves in a state of uncertainty as the scheme came under investigation and reforms were proposed. The amendments to the scheme in 2019 led to significantly reduced payments, leaving many participants struggling to recoup their initial investment costs. For small and medium-sized businesses, that made it financially challenging to maintain the renewable heating systems, undermining the original incentive to adopt greener technologies. As a result of the reduced tariffs, small and medium-sized biomass operators have been undercompensated since 2019. It is now the Department's stance that a tariff of 12% demonstrates fairness to participants and the taxpayer. However, in fairness to the participants, they were encouraged to take up the renewable heat incentive scheme by the very Department that is now seeking to close this flawed episode. The Department for the Economy has a choice. Does it accept that farmers and other biomass boiler owners may revert to fossil fuels, having lost all confidence in the scheme, or will it now re-engage purposefully to reinstate back payments to 2019 and set an acceptable tariff to allow full confidence in this scheme? The Ulster Unionist Party recommends that the Minister urgently tasks departmental officials to engage in a meaningful manner with participants to design a solution that ensures that those who entered the scheme with honest intent are not left with any financial loss. The Minister must commence engagement immediately to find a solution that not only protects those who face financial hardship due to departmental failures but starts to rebuild confidence in the ability of the Assembly and Executive to deliver good governance. We will, therefore, not support the motion.
507 words. Text as published by the Northern Ireland Assembly.
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