By Harry Hutchinson, Labour Party Northern Ireland
Regarded as the biggest fraud of public finances in British history, the Renewable Heat Incentive (RHI) has been examined by an official inquiry, the Coghlin Inquiry, the report from which has now exonerated department ministers of the Northern Ireland Assembly. Instead, it has put the blame on civil servants. The report found no evidence of “corrupt or malicious activity”. However, not even this whitewash can cover up the truth.
In what became known as the “cash for ash” scheme, payments were given to businesses to burn the non-fossil fuel which actually exceeded the cost of the fuel itself. Exploiters of the scheme soon began to heat any outbuildings, whether or not the buildings had any use or purpose. One farmer was owed £1m from the scheme, which one civil servant referred to as “free money”.
Businesses tipped off by ministerial advisers
Ignoring the cost controls in a similar scheme in Britain, the Northern Ireland Department of Enterprise Trade and Industry set up their own scheme in 2012, and with no cost controls in place, the scheme at one stage had an overrun of £700m. It soon ran into a massive overspend as corporate giants like Moy Park and also chicken farmers in particular exploited the scheme. As the Coghlin shows, businesses received tip-offs from special ministerial advisers, know as “spads” about how to exploit the scheme. The Coghlin inquiry, which was three years in the making, at a cost of £14m, was released on Friday afternoon, known to be the best time of the week for releasing ‘undesirable news.’
Coghlin spreads blame on the botched scheme predominately on civil servants, making reference to “accumulation of errors and failure of attention, but apportioning only a little blame on the then Department of Enterprise, Trade and Investment (DETI) Minister, Arlene Foster, for not familiarising herself with the regulations of the scheme. She is now First Minister in the Northern Ireland Assembly.
Warnings repeatedly ignored
But even the Coghlin Report cannot suppress the evidence. In 2012, when the scheme was first launched, OFGEM warned that the scheme was seriously flawed. Warnings to Arlene Foster were ignored. Again in 2013, a business woman, Janette O’Hagan, warned the Department of the flaws in the scheme, and again in 2014, for which warning she received no reply.
The inquiry found that by 2015, cost controls would have to be introduced and a date set for the cessation of applications to the scheme. The inquiry findings showed special adviser of the scheme, Andrew Crawford, alerted businesses and family members about the deadline, resulting in a surge of last minute applications, thus inflating the cost to public finances. Another DUP special adviser, Stephen Brimstone, even installed a boiler to heat his shed, just before the deadline.
The inquiry found senior civil servants, like the head of energy, Fiona Hepper, were holding back vital information and were sending out misleading information on the scheme. One special adviser, Tim Cairans, admitted to the inquiry that he attempted to delay the closure of the scheme, but claims it was done under orders from the DUP. The inquiry also disclosed that DUP minister, Simon Hamilton, and his cohort adviser, John Robinson, had leaked documents to shift blame from the DUP to civil servants.
Sinn Fein had knowledge of a lucrative scheme
The then Agricultural Minister, Michelle O’Neil, a Sinn Fein Assembly member, promoted the botched scheme to businesses and farmers. Although it was not mentioned in the inquiry, Sinn Fein held several business meetings during the time the scheme was running and had full knowledge and understanding of the lucrative opportunities for business.
No prosecutions or resignations are recommended from the inquiry; there are just “lessons to be learned.” None of the corrupt ministers or civil servants will face prosecution. Most of the special advisers have moved to other departments, like Peter Hutchinson, who moved from Hepper’s office at the DETI, during the cover up, who now works as senior adviser in the Department of Education.
The Coghlin inquiry again demonstrates how the capitalist system defends itself against the misappropriation of public funds for private businesses and corporations. All public bodies should be run by democratically elected committees of employees from the various departments.
March 16, 2020
