‘We will do our utmost to get as many projects through as possible’ ... what Sinn Fein MLA told potential applicants
A SENIOR Sinn Fein MLA vowed that the “utmost” would be done to have as many RHI projects as possible green-lit before the closure of the botched green energy scheme, correspondence submitted to the RHI Inquiry has revealed.
The comment by Mairtin O Muilleoir, who sat on the Enterprise, Trade and Investment watchdog committee, was made on February 11, 2016 in response to an email from a group complaining about the upcoming closure of the scheme on February 29.
In documents submitted as part of Sinn Fein MLA Conor Murphy’s witness statement to the RHI Inquiry, the group said it had been working towards a deadline of March 31, and that the earliest its system could be commissioned was in midMarch.
TVI Community Development manager Aisling Brady said she hoped Mr O Muilleoir “can persuade Mr Bell to understand the impossible position he is putting people in who are in the system and were aiming for the March 31 deadline”.
An hour later, Mr O Muilleoir replies that he is “very disappointed for all affected”, adding: “We are assessing our options at the minute and will do our utmost to have as many projects as possible green-lighted.”
Sinn Fein MLA Conor Murphy, who at the time was the deputy chair of the Committee for Enterprise, Trade and Investment, was also copied into the email.
In correspondence with Mr O Muilleoir that afternoon, Mr Murphy advised that the group could “try and get it installed before February 29”.
He said that Deti “never stated the closing date was March 31”, and added: “Having secured the additional two weeks we will probably not get anything further and may be obliged to support it in the Assembly.
“The group could either cancel the order or get it delivered asap and try to get it installed before February 29.
“Not sure we’ll be able to offer much else to them.”
Then, in an email to the director of the Federation of Master Builders, Gavin McGuire, on February 14, Mr O Muilleoir revealed that Mr Murphy had met with then Enterprise Minister Jonathan Bell, and that he had also personally raised the issue “to press him not to go ahead with the decision to close the initiative on February 15”.
He stated: “The Minister did concede the point and extended the closure date to February 29.”
Mr O Muilleoir also refers to a statement by Mr Murphy “welcoming that decision”.
Meanwhile, separate witness statements submitted to the inquiry show that Sinn Fein advisors described the RHI scheme as “a complete balls up” and “a horlics”.
The comments are contained in evidence from Ciaran O’Connor, who was a special advisor — or Spad — to the then Deputy First Minister Martin McGuinness.
They feature in a conversation which took place on the evening of February 2, 2016 between Sinn Fein Spad Conor Heaney and Aidan McAteer, who was also a Spad to Martin McGuinness.
Prior to the start of the conversation between the Sinn Fein advisors, an email entitled “draft memo to FMdFM re RHI” was forwarded from former DUP Spad Dr Andrew Crawford to DUP Spad Timothy Johnston.
Dr Crawford asked Mr Johnston to tell him or Tim Cairns if he was “content” to have the attached paper issued.
Minutes later, Mr Johnston forwarded the email to Sinn Fein advisor Mr McAteer.
That evening, Mr McAteer sent an email to Mr Heaney, advising that there was an “urgent procedure request coming in tomorrow” which must be cleared “as soon as it comes in”.
In response, Mr Heaney said that he was “involved in a number of the meetings to progress” the scheme, which he referred to as the “Heat Initiative” and said “could be a scheme that first originated in OFMDFM”.
He added: “It was passed a point to DETI as a delivery Department and seems to have turned into a horlics.”
In a subsequent email, Mr Heaney said “this does not seem to be the scheme I thought maybe earlier, phew!”
Mr McAteer then replies, describing the initiative as “a complete balls up”.
He stated: “No problem, it’s a ‘UK’ wide scheme which we have ended up paying unforeseen costs for — a complete balls up between DFP (the Department of Finance and Personnel) and DETI but the Executive carries the cost. Our priority is to close it down before it incurs any more costs.”
Three days later, on the morning of February 5, Mr McAteer sent an email to Martin McGuinness’ Spad Ciaran O’Connor regarding a letter from Jonathan Bell to the First and Deputy First Ministers requesting a decision by urgent procedure on the closure of the RHI scheme. Mr Heaney was also copied in. Mr McAteer stated: “This is already cleared in discussion with DUP. We have no alternative. Private office were told to clear it as soon as it came in as I’ve been discussing the drafting with DUP so it’s an already agreed draft.
“Can you let the PAG (Policy Advice Group) know that this is an exceptional case and they don’t need to do anything.”
In the letter from then Deti Minister Jonathan Bell to the First and Deputy First Ministers in February 2016, Mr Bell said he was “seeking agreement to take an urgent decision on the closure of the Northern Ireland RHI scheme” in order to “minimise significant DEL overspending on the scheme”.
The letter warned of “unprecedented numbers of applications for the non-domestic scheme,” for which it revealed that average annual payments had been “around £24,000”.
It added that the annual payments for the domestic scheme are “typically around £1,200 but are capped at a maximum of £2,500”.
The letter also highlighted an “unprecedented surge in applications” in autumn 2015 for biomass installations.
And it revealed that, in the run up to a tiered tariff and an annual cap on biomass payments, over 900 applications were received in just six weeks as “businesses tried to beat the deadline for tariff changes”.
The forecasted expenditure on RHI in 2015/16 was listed as over £30m, with the 2016/17 spend expected to be “around £45m”.
The letter warned that “HMT’s (the Treasury) position will be that NI will have to cover the full costs of any overspends” which “means that the Block DEL (Departmental expenditure limits) will be penalised for any excess spend for a period of at least the next five years and possibly up to 20 years ahead, depending on the approach taken to RHI in future in GB”.
It added that if the scheme is closed to new applications the overspend could be reduced to “around £11m by 2020/21” — provided “there are no further application spikes in anticipation of scheme closure”.
The letter concluded that “major overspend that has now arisen will now impact upon the NI Block”.
It added: “DETI does not have the funding to meet this overspend.
“In the circumstances I have no choice but to propose immediate closure of the scheme to prevent the overspend from increasing further.”
The documents released yesterday show that on February 9, 2016, a meeting took place between the First Minister, Deputy First Minister and the then head of the Civil Service (HOCS) Sir Malcolm McKibbin (above).
Also present were special advisors including Timothy Johnston, Richard Bullick and Stephen Brimstone.
A report said that “HOCS outlined the negative reaction which had emerged from some investors and suppliers to the proposal to close the scheme and the consequent risk of legal challenge”.
It added: “Following discussion, it was felt that the scheme should be left open until a date to be determined to allow for the completion of applications already in progress (to be further defined).
“Richard Bullick to speak to Timothy Cairns, DETI Special Adviser, and Aidan McAteer to progress this. HOCS to advise DETI Permanent Secretary of FM/DFM views.”
On the same day, the evidence submitted to the inquiry shows what is indicated to be a text conversation between Aidan McAteer and Timothy Johnston, with Mr McAteer requesting a meeting with Mr Johnston over RHI. Mr McAteer stated: “We should keep any discussion of soft landing for renewable heating scheme out of Executive.
“Can Johnny Bell and Conor Murphy meet today so that they can go public with it in an agreed manner.”
Just over hour later, he sent another message, stating: “We want to avoid a lobby building on this.”
Last night’s documents also contain a statement which, it is indicated, is from Richard McAuley in the Sinn Fein President’s Office, dated Monday, January 16, 2017.
It states: “The DFM (Deputy First Minister) became aware at the start of February 2016 that there was a serious problem with the RHI Scheme. On February 2 he was given a briefing confirming this.
“He immediately wrote to the FM and DETI Minister seeking an early closure of the scheme.
“The issue went to the Assembly on February 15.
“Conor Murphy raised concerns about allegations of fraud.
“SDLP and UUP voted to keep scheme open. SF voted to close it. It was closed on February 29.”
The witness statements released yesterday include evidence from Stephen Harron, who worked as a sales person for Hegan Biomass in Dungannon in 2015/16.
In a statement made on June 27, 2017, Mr Harron revealed he had made applications for two biomass boilers under the RHI tiered scheme, on February 29, 2016.
He said that the boilers had been installed but, at the time of making the statement, were “still awaiting accreditation” and “no payment has been received”.
His wife also made an application to the scheme in November 2015, with accreditation on March 24, 2017.
Mr Harron said Mrs Foster was his MLA and former solicitor who had previously helped him in an attempt to secure a new inquest into a child death.
He said that he had phoned her prior to the scheme’s closure, and assumed their conversation took place in the week leading up to it being shut down.
Mr Harron said he had contacted Mrs Foster “as she was my MLA” and said that he had spoken with her once as he had “quite a few clients that wanted to avail of the scheme and was requesting to see if there was any way the date of closure could be extended”.
He stated that he had clients who were “distressed” due to the scheme’s “imminent closure” as they “had spent money on buildings and the infrastructure for Biomass boilers”.
He added: “I asked if there was any way that Stormont could extend the closure date, the answer I got was no.”