Background to the Review

The Economic Research Institute of Northern Ireland (ERINI) has been commissioned by the Department of Finance and Personnel (DFP) to undertake a formal review of the policy to phase out industrial derating.  This policy has been subject to significant debate, most recently in the Northern Ireland Assembly with the Minister of Finance and Personnel, Mr Peter Robinson.  An assessment of Freight/Transport derating is also included within the scope of the review.

The policy to remove industrial derating in Northern Ireland was introduced in April 2005 on a phased basis with full imposition of rate bills anticipated by April 2011. In the first year 2005/06, industry paid 15% of the projected bill followed by 25% for 2006/07. After consultation with the Northern Ireland Manufacturing Focus Group (NIMFG) and AMICUS, a ministerial decision was taken to reduce the planned percentage phase out for 2007/08 from 35% to 30%, pending the outcome of this review. 

In broad terms, the aim of the review is to determine if the rationale to reintroduce rates to the manufacturing sector remains appropriate, to examine its impact to date and to make detailed consideration of the way forward for this policy.

Terms of Reference for the April 2007 Review of the Phased Removal of Industrial Derating

Removal of Industrial De-Rating: Your Views
The questionnaire used to help identify the significance of this issue for businesses in Northern Ireland

Review of Industrial Derating Policy
The full report of the Review of the Phasing out of Industrial Derating in Northern Ireland