(13 years, 2 months ago)
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Lord Lexden
To ask Her Majesty’s Government how they will encourage the rebalancing of the Northern Ireland economy in order to stimulate private sector growth.
Lord Lexden
My Lords, I am immensely grateful to have been given this opportunity to raise an issue of the greatest importance, not just to Northern Ireland but to the United Kingdom as a whole. It is an issue which for many years inevitably yielded precedence and priority to the suppression of terrorism and to the protracted search for political stability. The most vivid memories of pain and suffering will long endure in your Lordships' House, adorned as it is by distinguished former Secretaries of State for Northern Ireland, by ex-Ministers who served with them and by leading figures from the Province itself. Thanks to their efforts, and to those of so many other people of good will, the security situation has been transformed and devolution successfully restored. This remarkable progress throws into sharper relief the issue—the third great issue in the Province's life—which is the subject of this evening's short debate: its economic future. Peace and political stability need economic progress as their third companion.
Since I have never held any public office connected with Northern Ireland, a brief autobiographical note might not be entirely misplaced. My interest in the Province was first aroused while I was at Cambridge by a former Westminster MP for South Belfast, Conolly Gage, whom Churchill had failed to persuade to take junior office in 1951. He was a staunch unionist with strong progressive views. Between 1970 and 1977, I taught history at Queen's University, Belfast, where I had the inestimable advantage of working with—indeed, sitting at the feet of—my noble friend Lord Bew, at whose bootlaces I continue to stare.
During the two years before his murder, I was Airey Neave’s political adviser. On the morning that he was killed in March 1979, we finalised the Northern Ireland section of the Conservative manifesto for the forthcoming election. “I wish we had more to say about the economy,” he remarked. There was just one sentence:
“We recognise that Northern Ireland's industry will continue to require government support”.
The words may have been few in number, but they heralded Thatcherite spending on a large scale, maintained unfailingly under successive Governments of both parties, to sustain Northern Ireland's economy during the troubled years that lay ahead by attracting inward investment, supporting the Province's precious small businesses and protecting its agriculture, which constitutes an important element of the Northern Ireland economy. Public spending per head was held at a level that was one-third greater than in the rest of the country.
Such measures were essential in those times, but they have not supplied the Province with the foundations for sustained economic prosperity in the generations that are to come. The long years in which Northern Ireland required significant support have left it in a position where public spending is equivalent to more than two-thirds of GDP. Taxpayers in Great Britain have been called on to a substantial extent; they now provide the resources for around half of all government spending in Northern Ireland. That surely gives them a powerful interest in the future of the Northern Ireland economy.
Despite high public spending, in no other region is so large a percentage of the population of working age economically inactive. Yet, in this same region entrepreneurs once built vast businesses that made the north of Ireland a leading industrial centre, part of a mighty web of enterprise that also embraced Glasgow and Liverpool and created the economic basis for Ulster's enduring political union with Great Britain. In 1894—I mentioned that I was a historian—the president of the Belfast Chamber of Commerce proudly boasted that the annual output of linen yarn in the north of Ireland,
“amounts to about 644,000,000 miles, making a thread which would encircle the world 25,000 times. If it could be used for a telephone wire it would give us six lines to the sun, and about 380 besides to the moon”.
I have no idea whether the great man's calculations were accurate, but this claim that Ulster's linen industry surpassed all others is incontestable.
Having achieved so much in the past, Northern Ireland can surely set out with confidence to re-establish a thriving private sector of significant size in a form suited to the conditions of the 21st century. That, of course, is the rebalancing to which my Question this evening refers. The absolute necessity of striving to achieve it has been fully recognised by the coalition Government. Indeed, it is one of their principal objectives set out in their programme agreed after the election. Last year's Budget spelt out the details: the process of rebalancing,
“will include examining proposals for economic enterprise zones, possible mechanisms for changing the corporation tax rate and other economic reform options”.
The case for such action is constantly on the lips of my right honourable friend the Secretary of State for Northern Ireland, who puts the arguments for it with brio and such dedication. Speaking at the Conservative Party conference a fortnight ago, he reviewed progress, reiterating once more that the Government's,
“task is to rebalance the economy by encouraging private enterprise and supporting entrepreneurs and new business ... Only last week the Chancellor announced changes to Air Passenger Duty to save our vital direct air link to the United States. We’ve also provided the Executive with the money to set up new enterprise zones”.
Here my right honourable friend touches on one of the preconditions of success in Northern Ireland; that is, effective partnership between the coalition Government and the Executive at Stormont. It is surely the duty of us all to encourage the Executive to play their full part in the work of partnership. Funds have been supplied to establish enterprise zones. Proposals are now awaited from the Executive. It is frankly disappointing that five months after the Northern Ireland elections the Executive have yet to produce a programme for government.
At the very centre of discussion about how the Northern Ireland economy can be rebalanced stands the question of introducing a rate of corporation tax in the Province substantially lower than that which now applies throughout the country. The proposal stirs some instinctive unionist scepticism. Those, such as Joe Chamberlain, who called for home rule all round—devolution for all four constituent parts of the United Kingdom—at the beginning of the 20th century believed in devolved institutions with equal powers. But what we have today is, in the current unlovely phrase, asymmetrical devolution with more power vested in some devolved institutions than in others.
In this context, should Northern Ireland have its own low rate of corporation tax, particularly since across its land border, the Republic of Ireland—a key competitor in many areas—has long been reaping the benefits of a 12.5 per cent rate? The issues were set out in a consultation document, Rebalancing the Northern Ireland Economy, published by the Treasury in March. The responses were numerous with business organisations and the five parties in the Northern Ireland Assembly all expressing strong support for change. A ministerial working group is now being set up to examine in detail the complex and technical matters that need to be addressed. My noble friend Lord Shutt will no doubt have something to say about it.
Like the rest of our country, Northern Ireland today needs jobs; that is, jobs in the private sector, jobs that will last, jobs in the industries of the future and jobs that will match the vast range of talent that exists in that wonderful Province. The highly regarded Northern Ireland reform group estimates that a corporation tax rate of 12.5 per cent could create as many as 90,000 new jobs over a 20-year period. Without new and fulfilling jobs for young people in particular, much of the Province’s great talent will leave and find employment elsewhere. Northern Ireland cannot afford such loss. That, above all, is why economic prosperity, springing from private sector growth, is essential to secure the vital third element of the full restoration of the Province’s fortunes after its long, dark years. That is why so many people believe that the case for a 12.5 per cent corporation tax rate is now so compelling.
It is now nearly two decades since I gave up ministerial responsibilities in Northern Ireland, so I shall leave the corporation tax issue to others, including, retrospectively, my noble friend, who for understandable reasons maintain closer familiarity with the Province. That does not exculpate me for not having pursued it more vigorously when I did have ministerial responsibility. Perhaps since I came to Hillsborough direct from four years in the Treasury I had too much respect for its then rationale when, of course, the present level of devolution within the total realm was still a thing of the future.
I shall, however, briefly relate one telling and not irrelevant moment in the 1997-2001 Parliament, when I chaired the Select Committee on Northern Ireland affairs. We were engaged in a report on cross-border petrol smuggling between the Republic and Northern Ireland and were examining the then Treasury Minister responsible to Parliament for Customs and Excise. I asked the Minister to remind the committee of the Republic’s responsibilities under the Kyoto Protocol for carbon emissions. The Minister asked to be allowed to consult the accompanying Customs official and responded audibly, within the hearing of the committee, to the latter’s advice, with the words, “That can’t be true”, until appreciation sank in that the Republic enjoyed privileged treatment under the protocol as a non-industrial economy, whereas Northern Ireland’s treatment was as part of the United Kingdom. I do not blame the Minister’s Private Secretary for deleting the expostulated remark from the official record but it was an incidental insight into the precise extent of the Treasury’s understanding of the Province’s difficulties.
In my confidence that others will fully air the corporation tax dilemma, let me turn to personal experience of my own 50 years ago this autumn and look at the debate’s gravamen from the private sector’s end of the telescope. I realise that the debate is about Her Majesty’s Government’s encouragement but one of the ways in which the economy will be rebalanced is through entrepreneurial activity. Fifty years ago, I was the first head-hunter in the United Kingdom. I was the seventh consultant member of a small firm which had been established five years earlier in Chicago. I undertook to join it for a year to set up a new office in London, although I told the eponymous founder of the firm, who died in January of this year, that I had no idea whether there would be a responsive British Market; I had no idea whether I would be any good at it; and I had no idea whether I would enjoy it. In the event, we planted an acorn, we have harvested a forest—of course including subsequent competitors, some of which were started by our own people— and that firm is now the largest firm of its kind in the world to be still in private hands, which, in that industry, is exactly where it should be. It was on that firm’s business that I first visited Northern Ireland in 1963.
Why is that relevant to Northern Ireland today? I go back again to my time there as a Minister when anything that created private sector activity was of course a plus. I used to keep my eyes open for gaps in the economy where the Province was consuming products or services, however small, that it was not itself making. Where I needed to buy services, which I could have bought in England but which were available in the Province—my mind goes back to a fair amount of bookbinding; certainly, to a commemorative sampler; and, more grandly, to a fibreglass dingy for the Hillsborough Castle lake, which had then an island and a boathouse but no boat, that was baptised as the “Tom King” after my predecessor—I bought them out of my own pocket as a tiny contribution to the local economy. When there was no local product that I could buy, I made quiet inquiries as to why not.
We all know the skills base of the local economy. Today there is not time to tell the moral tale in the public sector of the Passport Office crisis at the beginning of the 1990s and the Province’s dramatic resolution of it—unlike Dr Watson’s remark about Sherlock Holmes and the Giant Rat of Sumatra, the world is ready for that story but we have no time. But it was a particularly vivid index of the Province’s superlatives.
I hope that out of this debate, whether through Her Majesty’s Government or the devolved Executive or even from an enterprising charity, will come an analysis of all the things that today the Province consumes but does not make or internally provide. I hope too that at least one person of 27, as I was 50 years ago, has the excitement of creating a business that creates a new industry or service—of course, there is nothing about being 27 that is mandatory—and that there will emerge from the analysis a whole raft of opportunities. Anything that Her Majesty’s Government do in the mean time to favour the entrepreneurial spirit will be a bonus and to be welcomed the more in the Province.
Finally, as to the public sector, I remind your Lordships’ House of Lenin’s doctor, the Armenian Armand Hammer, to whom Lenin offered a monopoly of a single product in the new Utopia. Dr Hammer, who could recognise a bureaucracy when he saw one, chose pencils, and from that acorn grew Occidental Petroleum.
Lord Alderdice
My Lords, I am grateful to and congratulate my noble friend Lord Lexden on obtaining this debate on rebalancing the economy of Northern Ireland, which is a challenge. The value of this debate in your Lordships’ House is that we are not under any compulsion to do other than try to explore the questions honestly and in a fashion that might be helpful to Her Majesty’s Government in fulfilling their responsibilities in relation to the Province.
I note that in chapter 2 of the book that launched the consultation there is a list of some of the strengths of the Northern Ireland economy: a relatively young population, high quality education and training, persistently competitive labour costs, a flexible and responsive skills system, a track record of attracting inward investment, 100 per cent broadband coverage, good transport links, a relatively low crime rate, strong tourism potential and so on. That list, more or less, is one that many of us in Northern Ireland are familiar with because we have spent a good deal of our lives trying to use lists of this kind to sell Northern Ireland to other places. Indeed, it is not hard to be convinced that we have these great strengths and potential. Some noble Lords have laboured for some years in Belfast City Hall. It is hard to inhabit such a building and not feel a sense of confidence and pride in a city that could produce something of that kind for its main building. It is an acknowledgment of the strength of the local economy at the time. Belfast is the city that produced and launched the “Titanic”, and we still produce T-shirts that say, “She was all right when she left us”. There is a great sense of pride in these things, and anyone who in the great days of the shipyards stood in one of the hulks that were being produced—cathedrals of engineering—could not but get a lump in his throat and feel a sense of pride about living in a place that could make such extraordinary products.
But it is important not to inhale when dealing with your own propaganda and to recognise that, although there are great strengths in Northern Ireland, our problems with the economy did not all come from the Troubles. Of course we had great strengths at the end of the 19th and the beginning of the 20th centuries when we were a central feature of an empire that spanned the world, and with all sorts of economic differences from the world in which we now live. It was also the case that many of those who laboured long and hard in the shipyards, the linen mills and other industrial aspects knew very poor circumstances in terms of their own health and welfare. That was one of the reasons we were successful too.
The truth is that after partition in the early 20th century, when the world moved into depression and we did too, it became increasingly difficult to sustain a Northern Ireland economy that was independent in terms of its own taxation and economic strength. As the 20th century moved on, it became even more difficult for our industries to be competitive, and long before the Troubles broke out we were in very substantial difficulties and already needed support from the rest of the UK economy. There was a certain amount of optimism in the 1960s when Brian Faulkner was Minister of Commerce. He certainly brought a degree of energy, enthusiasm and a sense of optimism that there were new possibilities, and it is not at all clear how things would have gone had he been able to remain in post, the Troubles had not happened, and so on. But if we stare long and hard at the reality we quickly come to the conclusion that we could not assume that, without the Troubles and all that came with them, everything would have been well in the Northern Ireland economy.
The Troubles added to our problems in two ways. First, they chased away business, whether internally or through inward investment. Who would want to invest in a country that was at war with itself? But there was another almost insidious way in which our economy was damaged, and that was through the sustenance that was necessary from the British Government and the British Treasury to maintain some cohesion in the community, ensure that public services were delivered, and that security did not suffer any more than was absolutely necessary. What that did over two generations was to produce a population in Northern Ireland that was extraordinarily dependent on the public sector and public expenditure. It is not just that it was the case in practice; it was a culture that was espoused and adopted—it was taken into the whole community.
When my noble friend talked about “jobs, jobs, jobs”, as he quite rightly did, the problem with the phrase is that there is an assumption that it is up to the Government or someone else to provide us with those jobs, whereas actually what we want is a community that sees itself taking the initiative in order to provide its own wealth creation. I am afraid that I found it enormously difficult in east Belfast—a community that would like to live with the myth of an enthusiastic, entrepreneurial and largely unionist population—to persuade local people to start up their own businesses and try to create wealth for themselves. It was always a question of being dependent on the Government doing something or someone else providing the jobs.
The reason I mention this is not because I am particularly sceptical about any of the proposals around. My noble friend mentioned the corporation tax proposal, which seems to me to be a potentially substantial jolt. It is not going to be a requirement that the Northern Ireland Executive should institute a particular level of corporation tax. The challenge is this: are you prepared to take on board this opportunity? I hear in Scotland, for example, all sorts of talk about wanting the power to set corporation tax, but the Government there are not even implementing the capacity they already have to raise income tax, should they choose to do so. It makes me wonder whether what is in truth required there is a serious economic power or whether it is a political game being played for wholly other reasons. But the possibility that people would take responsibility for something as large as corporation tax, or perhaps more modestly, aircraft passenger duty, is to say to our local elected Assembly and Northern Ireland Executive, “You now have the responsibility as well as the power to do some of the things that are necessary to make a change. Are you up for it?”. That, in a sense, is the question that I come back to my noble friend with because, as has already been said, some months on from the election to the Assembly and the establishment of the Northern Ireland Executive, the plan is not at all clear.
No one went into the election in Northern Ireland in any great doubt as to which would be the major parties of government or who were likely to be the First and Deputy First Ministers. When an election was held in the United Kingdom as a whole and the largely unexpected outcome—at least in some circles—of a coalition came into being, it took only a few days to put together a coalition agreement. One might be critical or otherwise of it, but the fact is that it took only a few days—and there was no clarity before the election that there would be that kind of an outcome. In Northern Ireland, it was absolutely clear what the outcome would be, and months later we still do not have the kind of plan that is necessary to take the country forward. Although the question of corporation tax and other fiscal freedoms is important, and although it is true that we have great strengths and possibilities, we have two major problems. One is the fact that our peripheral position and our previous dependence on heavy engineering and other aspects of the economy are disadvantages, and we have a cultural disadvantage in that we have become an institutionalised, dependent economy which is much more difficult to get out of because it needs a change in people’s mindset.
But I come back to the fact that there are strengths. We have two universities and relationships with other universities that produce ideas and the possibility that those ideas could be productive and help to build up and strengthen our economy. It is also true that, even now, many of our most creative young people find themselves having to leave Northern Ireland rather than be able to stay and develop their skills in order to build our economy. If there are things we can do to help nudge—perhaps it requires more than a nudge; perhaps it requires a really substantial push—those who now have the responsibility for Northern Ireland to take that responsibility seriously for the development and rebalancing of the economy, and if this debate contributes to that, I think we will have done a worthwhile job and made a contribution.
Lord Bew
My Lords, I thank the noble Lord, Lord Lexden, for securing this important debate on the need to rebalance the Northern Ireland economy. I would also like thank him for his very kind words about me, but to say one thing: he misrepresents the flow of intellectual influence. When the noble Lord, Lord Lexden, was an academic at Queen’s University Belfast in the 1970s, he with Professor John Vincent wrote a book called Governing Passion. For my generation of graduate students, it was a powerful and exciting book that had a huge impact on the way we wrote about politics. I therefore put it on the record that the flow of intellectual influence went that way.
It is important not only to thank the noble Lord, Lord Lexden, for securing this debate but to draw attention to the fact that we have had, at least in the past year or so since the change of Government, a more intense debate about the Northern Ireland economy. Whatever the merits or demerits of the argument about corporation tax, to which I shall come in a minute, it is important that we have had the beginnings of a serious discussion. It has inevitably been delayed because of the whole question of the Troubles and the recovery from them, and the domination of public debate by the need to find a secure settlement.
When the issue of corporation tax first entered the public domain as a crucial subject, my own reaction was initially quite sceptical. I always thought that it was good that we were talking about it because at least we were talking about the need to rebalance the Northern Ireland economy, at least it was a new idea, and at least it was focusing public debate on an economic question. None the less, I was sceptical, and the noble Lord, Lord Lexden, has already referred to part of the reason for it: you could reasonably argue that unionism in the past century had one idea that really worked. That one idea was equality of taxation means equality of services and good things flowing from the London Treasury in return. This was Edward Carson’s idea. It is why, for example, before Irish independence he always supported vigorously in this House expenditure of money by the British state on the west of Ireland. Those of us who know the west of Ireland know that some of the public amenities that you can find there and in the ports are a product of decisions made by the British Treasury before 1916 and 1921. It has always been a logical idea that a unitary state implies a unitary taxation system and a unitary flow of benefits to the citizens in return throughout its regions. That was the ground for my scepticism.
Now that we exist in a different world with devolution in the United Kingdom, there is much conversation about the possibility of the devolved systems having different taxation regimes. It seems widely considered to be entirely compatible with the continuation of the union that one has taxation regimes that are not as simple and uniform as those with which I grew up. There is therefore an argument on that score that uniformity may not as be as important as many people considered it to be in the last century.
There is another simple point: Northern Ireland does not do too badly with foreign direct investment—it actually does better than the other regions of the United Kingdom. It has major problems with the productivity of workers and of the culture, which has been so admirably described in its historical evolution by the noble Lord, Lord Alderdice, but it does better than other regions of the United Kingdom for FDI.
I began to wonder even so whether it was right that we should talk so much about corporation tax. I looked at the companies that went to the Republic of Ireland, which is obviously Northern Ireland’s major competitor. Many companies, it is argued, go there primarily because of the low level of corporation tax, but most of those companies do not say that. They tend to put it low on their list of reasons for moving to the Republic of Ireland—there was recently a case of a company that was considering Derry but went to Kerry. Companies do not say that corporation tax is the reason; they tend to put it at about number five on their list of reasons. Being a credulous sort of person, I tend to believe them.
But this is where my mind begins to change on this topic; I have begun to rethink. I am not convinced that companies tell us the full truth about their decision-making in this matter. I give an example that has struck home to me in the past 18 months watching the public debate in the Irish Republic. It brings home some of the difficulties for Northern Ireland. Google along with a number of other American companies about 18 months ago began to criticise the educational system in the Irish Republic, saying, “It is not as good as you think it is and this is a problem for us”. The then Irish Minister of Education, Mr Batt O’Keeffe, immediately responded and took these criticisms quite seriously. The new Minister, Ruairi Quinn, has said in a memorable but graphic phrase, “We have been codding ourselves about the quality of our educational system”. The concerns of the American companies were highlighted by a number of international reports that seemed to show that Ireland was sliding down, particularly on the mathematical side. There are great concerns, for example, about the quality of maths in Irish schools now. This crisis has been brilliantly covered by Sean Flynn, the education correspondent of the Irish Times, in a series of magnificent articles. At the turn of the year, he described 2010 as a very bad year for Irish education.
However, in the past few weeks, Google, one of the leading companies making this criticism of the education system, has announced that it is going to Dublin and not to Belfast, which was also a bidder, for a major new investment. So it turns out that you can believe that a society has significant defects in its educational system that create problems for such American companies with what they are looking for in their workforce, but they still, oddly enough, end up in the place with the best tax regime. That is what has made me cynical about the reasons given by companies for acting as they do. Details of that sort enhance the case for corporation tax reform for the benefit of Northern Ireland.
I understand that it is possible that this issue may be stuck. The Treasury has objected, as have a number of very serious economists. There are complications around the issue that are nothing to do with Northern Ireland’s place in the United Kingdom but a lot to do with Scotland and what Scotland wants to do, as has already been alluded to by the noble Lord, Lord Alderdice. If the Treasury is going to say no and if the public argument is going to go against the case for corporation tax, which has been made eloquently by many Northern Irish politicians of all parties and by the Secretary of State, Owen Paterson, we have the problems as outlined by the noble Lord, Lord Alderdice. We have the problem of a dependency culture that relies on the state and the Treasury, for reasons that are not the fault of the people of Northern Ireland. What, then, is going to be done? There is perhaps one slight hope: that an unintended consequence of the changes in university fees and the system in operation in the United Kingdom might be that some of the talent that currently goes to English and Scottish universities will stay in Northern Ireland, which might in turn turn out to be a very useful development for the economy.
I understand and respect the arguments of the Treasury going back to the Varney report, which was a serious document, but if the answer is going to be no, the question must be: what else are we going to do? At this point, I am not hearing much else.
Lord Black of Brentwood
My Lords, I join others in congratulating my noble friend Lord Lexden on securing this debate. I know from my long association with him that there is no greater or more eloquent champion of the people of Northern Ireland, its history and heritage, and the opportunities for its future than my noble friend, as has been evident today in his choice of debate and the passion of his remarks.
Economic issues are perhaps of more significant importance in Northern Ireland today than almost anywhere else in the United Kingdom. I would like to speak about one small but crucial sector of Northern Ireland’s economy—its creative industries. As the media play a role in that I should declare an interest as a director of the Telegraph Media Group. The creative economy is important not only because of the private sector jobs it can create and the investment it brings, but because it is so often at the very cusp of the public/private divide that is the defining characteristic of the Northern Ireland economy, which we are discussing this evening. As such, the creative economy could and should have a vital role to play in rebalancing the economy of the Province.
Northern Ireland is already home to a lively cultural sector, employing, according to the Northern Ireland Executive, some 36,000 people, and there are many success stories to tell—such as the emerging film and TV production centre, with Northern Ireland being used as a base for filming major productions such as HBO’s “Game of Thrones” and Universal’s “Your Highness”. Northern Ireland Screen’s target is for direct, achievable, levered investment in the Northern Ireland economy of £112 million from screen production activities between 2010 and 2014.
Northern Ireland has a long-standing musical heritage. Indeed, Belfast will be hosting the MTV European Music Awards on 6 November.
It also has a vibrant newspaper industry, with over 50 publications throughout the Province. Papers such as the Tyrone Courier have even beaten UK-wide circulation trends. This publication is believed to have doubled its readership in the past 10 years by focusing on key community issues.
But there are some serious economic issues ahead in this sector. For understandable reasons, there have been cuts to the Creative Industry Innovation Fund, which helps leverage investment in the cultural economy. Perhaps more worryingly, there seems to be little strategic thinking by the Northern Ireland Executive about how to develop infrastructure for the creative industries and allow them to play their part in economic regeneration. The Northern Ireland Programme for Government for 2007 to 2011 made scant reference to this sector. I hope the next one, when it appears, will remedy that.
The newspaper sector is facing particular challenges. In recent years its workforce, according to Skillset, has shrunk to around 1,000 people, and the workforce of the publishing sector as a whole has halved. There are serious commercial question marks hanging over the viability of some of the Province's smaller local newspapers, themselves a vital part of Northern Ireland’s civic tapestry.
One of the key problems is the change that is taking place in the public sector, ironically enough. Fewer public sector jobs has meant reduction in public sector recruitment advertising, which accounts for some 70 per cent of the recruitment revenues on some newspapers. The depressed property market, which is probably more stressed in Northern Ireland than anywhere else in the United Kingdom, has had a similar impact on classified advertising revenues. These pressures come at a time when, ironically, weekly newspapers in Northern Ireland are often at the centre of boosting the Province's private sector businesses, while initiatives such as the Newspaper Society's local business accelerators campaign, launched only today and welcomed by the Prime Minister, can play an important part. It is an excellent initiative. Papers such as the Banbridge Leader and the Dromore Leader and the Mid Ulster Mail and Tyrone Times have launched successful business awards, highlighting the strength of local SMEs and the resilience of larger businesses.
A number of things can be done to help strengthen the creative economy—the jobs it supports and the investment it brings, as well as the vital part it plays in the cultural life of Northern Ireland—as the economy is rebalanced.
First, it is vital that we do what we can to help the Province's newspaper industry. There are continuing concerns about the threat to statutory public notices in newspapers, a key source of income as well as an essential tool for members of the public and community groups to find out about public events and developments in their area. Already local council public notice advertising spend is down 37 per cent in Northern Ireland, which is hitting newspapers hard and opening up a democratic deficit. Further reductions would be intolerable.
Secondly, I welcome what the Government are doing to help publishers in Northern Ireland, as elsewhere, diversify their businesses. The Government are planning three local TV stations in Northern Ireland and there was considerable interest in the recent visit of the Secretary of State for Culture Media and Sport to promote those plans, which can help the media in Northern Ireland expand beyond print and offer cross-selling of advertising packages across the full range of media—newspapers, TV, radio and Internet.
It is however vital that the UK regulatory regime recognises the realities of today's highly competitive local media markets, allows greater flexibility over media mergers and acquisitions and does not continue to block small, family-owned newspaper publishers from developing and growing their businesses in the deeply troubling way that happened only this week in a proposed merger relating to the Kent Messenger Group and Northcliffe Media.
Thirdly, there are significant opportunities to begin, through heritage-led regeneration, to build hubs of creative industries that will help promote private sector investment and jobs. Such regeneration can be a great catalyst for private sector growth in areas of major deprivation—for instance around the Carlisle Memorial Church and the Crumlin Road Gaol and Courthouse in North Belfast. This is a focus for the valuable work of the Belfast Buildings Preservation Trust, which I strongly commend. The trust, along with the Northern Ireland Design Alliance, is seeking to use the creativity that is the driving force of this sector to help in the delicate task of rebalancing economic structure and policy in Northern Ireland. This will also help the heritage-based industry, in particular, to forge new links with EU member states and with the United States of America, countries with which there has traditionally been little engagement in this sector and, as a result, lost opportunities for private sector investment.
Another significant opportunity is the BBC's decision to move programme and production responsibility outside of London. Speaking last week at the Belfast Media Festival, director general Mark Thompson spoke of his hope that BBC Northern Ireland would become a “fully-fledged creative hub”. That will contribute not only to national network programming but, provided the BBC opens its arms to the private sector rather than acting as a publicly funded competitor, it can create another unrivalled opportunity to promote the economic rebalancing that is central to this debate.
In all these areas, policy needs to be developed to encourage relevant new skills, to help in the creation of new economic hubs, to support risk-taking and a creative approach to regeneration, and, above all, to provide leadership in a sector where this has traditionally been in short supply. In that way, the richness of Northern Ireland's cultural sector—its music and performing arts, its screen and TV potential, its newspaper publishing industry and new media and its heritage and built environment—can play a long-term role in attracting private sector investment and new jobs and, at the same time, enhancing the quality of life and of enjoyment of people throughout the Province.
Lord Empey
My Lords, like others, I thank the noble Lord, Lord Lexden, for securing this debate. One interesting point that has not yet been made is that this debate is about rebalancing the economy of Northern Ireland. It is not about the latest security atrocity or terrorism—something that we have been living with for so long—but how the economy can be improved. It is about time that we looked at this issue. At the end of the day, rebalancing and strengthening the economy is one of the tools that we can use to prevent further outbreaks of terrorism and maintain the isolation of those who are prepared to take up arms against the democratic wishes of the people. The noble Lord, Lord Lexden, has done a twin service in securing the debate.
I, too, am interested in the decisions on air passenger duty. The Treasury announced the formal process yesterday and of course there will be negotiations with the Northern Ireland Executive. It will not be a for-nothing negotiation on behalf of the Executive. They will probably find that, just as the same principle will apply to corporation tax, the loss of revenue will eventually come out of the block grant. Having been involved at the start of the route development fund in about 2000 or 2001 which helped us to secure the transatlantic service, I am obviously anxious to see it maintained. Only a year or so ago, we got the New York Stock Exchange to set up in Northern Ireland. What kind of message are we sending them if we suddenly say we are stopping the very aircraft that gets them to and from their headquarters? We want to remember, going back 10 years, that we had one international flight out of Northern Ireland. It went to Amsterdam. We are now competing with air passenger duty in Dublin of €3. The Executive will have to take the decision that is necessary to make up the shortfall in funding.
One sector that sometimes gets left behind is the agri-food sector. At present, it accounts for some 20 per cent of Northern Ireland private sector employment. Everybody had been saying that financial, hi-tech or IT services were the solution. The dotcom bubble burst, then the financial services bubble burst. Throughout the bad days after the crash in 2008, the agri-food sector and the land-based industries, which are a much greater proportion of the Northern Ireland economy than in the United Kingdom as a whole, kept on steadily going. Invest NI, which I had some part in creating, had taken a view in recent years that it would concentrate its activity on jobs that produced salaries of £25,000 a year or more. In most cases, the agri-food sector did not come across that. The average salary there is currently some £20,000 to £22,000. However, in light of current circumstances and given the plans that the Irish Republic has announced to grow its food sector by 40 per cent by 2020—Scotland has also announced that it intends to grow its food sector—if we were to do the same thing it would have a dramatic effect, creating between 7,000 and 8,000 jobs directly and a significant number in addition.
Given the circumstances that the world finds itself in, being a significant provider of food is not a bad place to be. In the current circumstances, while I accept the need for high-value-added jobs, we have to be more realistic in the current labour market and economic situation. I would be inclined to give significant support by having a major plan to develop the agri-food sector, not only on the food processing side but particularly in research. There is a lot of research money in Europe. We get just about—and no more—our share of it. I strongly urge the Executive to pursue this because we can collectively achieve a lot more by doing so.
Much has been said about corporation tax. I am not going to rehearse the arguments. I regard it as only one of a whole series of tools. I support the idea—I have always done so—but there is no silver bullet that will fix the problem. I know from my own experience on the skills side that, as a United Kingdom, there is still in excess of one-fifth of our population that is not adequately literate. Northern Ireland is actually slightly better off than the rest of the UK in that regard, but what a statistic for a country that prides itself on being one of the top economies of the world.
We saw the social problems in the summer during the riots. The common denominator by and large, with some exceptions, was the absence of basic skills. When we translate all of that back to Northern Ireland—the noble Lord, Lord Alderdice, made a number of very important points about the culture—we might say that people have been bred up on the benefits system. That is not where their natural home is, but to get away from it, when you add all the benefits—free school uniforms, dentistry, healthcare, opticians and so on—you would need nearly a bank manager’s wages to make it worth your while to work.
Given the combination of that with the lack of opportunity, what do we expect people to do? They have to put food on the table somehow, so it is up to us, in rebalancing the economy, to get the message across. I have been in the middle of Stormont for years, and have seen how the carve-up happens at the table whenever the money from London is put on there—everybody grabs their bit and that is the way it works. We have to realise that that endless flow that we have seen for many years is no longer endless and it will get progressively less. That is an inevitability as the economy of the United Kingdom faces up to the fact that we talk about deficit reduction but in fact we have structural debt and all sorts of debt, and it is going to take a generation to clear it. Northern Ireland is not going to be able to rely on very substantial amounts of public expenditure to survive.
Therefore, I entirely support the comments of the noble Lord, Lord Black. I believe very strongly in the creative industries. There is tremendous potential and we have some wonderful talent. Look at our golf. We have huge opportunities there to exploit that from a tourist point of view and in other ways. What other small province in the world could have produced so many talented people in such a short time? It is statistically almost impossible but we have done it. When we add in our land-based industries and our experience in food production, in those three areas alone there is potential for significant growth.
It is depressing in the current circumstances to see youth unemployment in particular rising, but I retain residual optimism that ultimately the entrepreneurial spirit and indeed the genes that were in the economic life of this part of the United Kingdom can be revitalised. It is a matter of concern that so far into the new Assembly progress has not been made. I know how hard it is to produce these programmes for government. It is a very tiresome process, but at the end of the day if we do not get on quickly, we are not giving the right leadership to the industry that is so necessary for our future prosperity.
Lord Kilclooney
My Lords, I should like to fill the gap—I was not aware of this debate until today, unfortunately. I congratulate the noble Lord, Lord Lexden, on having this debate. As the noble Lord, Lord Empey, says, the great news is that we are discussing the economy of Northern Ireland and not the security situation.
I declare an interest as chairman of the largest newspaper group in Northern Ireland and the Republic of Ireland, employing some 300 people, so I know something of the problems of business in both parts of that island. I am delighted to hear the noble Lord, Lord Black, mentioning the Tyrone Courier and certainly he will be well reported in the Tyrone Courier next week because it is the largest weekly newspaper in Northern Ireland. One thing I disagree with him about is that he says the small papers are in trouble. No way—small papers are succeeding. We have the largest circulation in Northern Ireland, with 75,000; the big papers, like the Belfast Telegraph, are down to 50,000. The weekly papers are succeeding; the daily papers are in decline right throughout the United Kingdom—so be careful at the Telegraph!
The noble Lord, Lord Lexden, said that devolution was successful. I was deputy leader of the Ulster Unionist Party at that time with the noble Lords, Lord Empey and Lord Trimble. We negotiated the Belfast agreement. To say it is successful is going a bit far. I am more inclined to agree with the present Secretary of State for Northern Ireland in his speech in Manchester a few weeks ago when he said it is getting to the time when they have got to make decisions. People in Northern Ireland are losing respect for the Northern Ireland Assembly, and if it collapses then the gap is filled by terrorism yet again. It is important that decisions are made.
Look at the decisions that have been missed. We mentioned golf; the great international football pitch—no decision; the extension of Belfast City Airport—no decision. The replacement of the 11-plus—abolished; now we have three 11-pluses.
Lord Kilclooney
Well, there is one for integrated schools, one for Roman Catholic schools and one for state voluntary schools, which is amazing. On John Lewis’s planning application at Lisburn, there is no decision. There are no decisions being made and sooner or later the public in Northern Ireland will catch on, which will be very bad news there. As far as devolution is concerned, we should place on record our appreciation of the work of Senator George Mitchell, who some of us were with on Monday evening at King's College, and our thanks to the former Prime Minister, the right honourable Tony Blair. He is criticised very much these days in the media but we should place on record our appreciation of the time and effort he gave to bring devolution.
The noble Lord, Lord Lexden, said that GB taxpayers are subsidising Northern Ireland. He forgot to mention places called Scotland and Wales, and other parts of England. They are getting subsidised as well. We are actually quite successful now. We are not the poorest part of the United Kingdom any longer. Wales is—check the figures. Our unemployment in Northern Ireland is now less than the UK average. We have statistics to show that Northern Ireland is progressing and we should not always be on the back foot, trying to say that things are bad there.
I come to the issue of corporation tax. I have always been critical of the Northern Ireland Secretary of State in his campaign to have a lower level of corporation tax in Northern Ireland. If you look at the PwC accountants’ report on what attracts an investment, corporation tax is number 10 in the priorities —not number one but number 10. I know that from my experience in business in both Northern Ireland and the Republic. Other things come into account: national insurance contributions; other forms of taxation; education—there was some criticism of that this evening—and labour costs. The noble Lord, Lord Bew, mentioned Google but he did not happen to mention Dell, which left Limerick in the Republic of Ireland. Why? Was it the 12.5 per cent corporation tax? It stayed in the European Union and went to Poland, with its 19 per cent corporation tax, because that tax is not the main factor in deciding how you develop a business. There are many other issues: read the papers tomorrow and see what Aviva has announced in the Republic of Ireland today.
I am going to be told that my time is up. All I can say in closing is that, as a Unionist, I believe in equality of services, equality of taxation and equality of responsibilities.
Baroness Smith of Basildon
My Lords, this has been a stimulating and, I hope, a very valuable debate for the Government. As the noble Lord, Lord Empey, said, the significance of debating the economy is one that your Lordships' House should be proud of. I congratulate the noble Lord, Lord Lexden, not only on his choice of debate, which has given us the opportunity to debate extraordinarily important issues this evening, but on the way in which he introduced the debate. I think your Lordships' House will be very grateful to him for doing so.
The comments made by the noble Lord, Lord Alderdice, at the beginning of his contribution were very appropriate. He talked about the purpose of tonight’s debate, which is to help assist the Government in what is a difficult decision to make: how to rebalance and grow the Northern Ireland economy. It is a debate that, as we have heard tonight, cannot be taken in isolation because the economy of Northern Ireland is inseparable from what has occurred politically, socially and security-wise over 30 years. We recognise that there is higher per capita public spending in Northern Ireland and understand that the Government want to see the level of public spending reduced more quickly there. We all want to see a stronger and more resilient economy, because nothing causes public concern and dissent faster than rising unemployment, the fear of unemployment and poor public—and indeed private—services.
After decades of underinvestment in key services—although not for a lack of spending, as there were very high costs associated with policing and security—there is a real need for public services to improve and be more efficient. Your Lordships' House has to understand that there are special reasons why public spending in Northern Ireland remains higher, and it was clear from the debate tonight that it does. That backlog of underinvestment did not disappear with the Good Friday agreement or the establishment of the Northern Ireland Executive.
I entirely agree with the objectives of improving the economy, attracting private sector investment and improving skills, as the noble Lord, Lord Empey, said. As noble Lords have said, this has to be done in several ways. A reduction in the level of corporation tax is the main argument put forward in the document on rebalancing the economy. However, I do not see bringing the rate of corporation tax down to 12.5 per cent, in line with the Republic, as a silver bullet. It was Kate Barker who first commented on this in her Economic Advisory Group report. She reported that if a reduction in corporation tax were to be introduced, it would have to be alongside other measures to rebuild the economy. I am not sure whether Kate Barker at that time considered it alongside the reduction in the block grant; I think that came from the Azores judgment. However, we need to look at the other side of the equation and at further cuts in the block grant.
The Northern Ireland Executive are already having to make savings and efficiencies following the cut of £4 billion to £5 billion over the next four years as a result of the public spending review. They are taking action; I am pleased to see that the RPA—the review of public administration—is proceeding to reduce the number of councils. However, I am sure that the Executive will have heard the frustrations expressed tonight in your Lordships’ House about the programme for government.
I was the relevant Minister on two levels. I had to look at two decisions: one on the introduction of water charges and another on the 11-plus, which was also mentioned. Neither of those were popular decisions and nor are they now. However, clearly difficult decisions must be taken so I am certainly not against the Northern Ireland Executive having to take political responsibility for their own budget. My real fear is that the cuts already announced are too harsh and too deep, and will bring significant problems to both individuals and the Northern Ireland economy. I was struck by the comment of the noble Lord, Lord Black, about the creative industries and how difficult they are finding some of the cuts that they have had to face.
I welcome some of the decisions made by the Executive in support of businesses. For example, there was an announcement yesterday by Invest NI, which is part of DETI, the Department of Enterprise, Trade and Investment, of a new £50 million fund to provide loans to companies that have not been able to access equity. Despite government promises to get the banks to lend more, that remains a significant problem for many smaller businesses and medium-sized enterprises that are trying to grow. I congratulate Invest NI on a great initiative, which has the potential to make a real difference.
We see a position where the Northern Ireland Executive already have to make significant changes and cuts, and need to attract investment to rebuild the economy. My concern arises because the impact of a reduction in corporation tax could be a loss of a further £300 million or £367 million—different figures have been mentioned. That cut in devolved spending has to be taken into consideration by all who are debating this issue. Where will that money come from? Which services will bear the brunt of that further cut? That is the area of concern. Is it too high a price to pay? In examining the case for a cut in corporation tax for Northern Ireland, one has to look at the reasons for the growth in investment that we saw in the Republic of Ireland. Was the primary factor in the growth in investment and the increase in jobs that was seen—we do not see it now—a different level of corporation tax?
I am not a tax expert but I have tried to speak to and read the works of those who are. They tell me that the Republic did not compete on just its tax rate. Many experts say that, in effect, many companies are offered a zero rate—they pay nothing at all—and that is part of the reason for the current problems that the Republic of Ireland is experiencing. There was significant growth, yet while the rate of corporation tax remains the same the economy now has significant problems. The level of unemployment in the Republic is significantly higher than it is in both the UK as a whole and Northern Ireland. For example, unemployment in Northern Ireland is a little more than 7.5 per cent, while in the Republic it is 14.3 per cent—up from 4.6 per cent in 2007. Among 18 to 24 year-olds, unemployment has significantly increased here in the UK to just over 21 per cent. In Northern Ireland it is 18 per cent but in the Republic of Ireland youth unemployment is a staggering 31.5 per cent.
Therefore, I urge caution: I worry that some may feel that a cut in corporation tax is enough to encourage that much needed investment. I note that the noble Lord, Lord Lexden, agrees with my concern that on its own it is not enough. We recognise that it is much more complex and that significantly more information is needed. I understand that the Northern Ireland Grand Committee in the other place has postponed its session on the economy and instead is debating the big society because it feels that it does not have enough information at this stage and wants more information before it resumes that debate.
I appreciate that the Government know that there is a lot of work to be done before any decision can be taken but, for the debate to proceed, more basic information is required. The Minister may have this information to hand. I am not clear whether the Government yet know how many companies in Northern Ireland pay corporation tax and at what level. Do we know what the total take of corporation tax in Northern Ireland is? Unless we have those figures it is very difficult to ascertain what the cut in the block grant should be.
The paper suggests that the level of corporation tax tapers off as the level of the block grant goes down. However, if it proves evident that the cut in corporation tax is not having the intended effect, do the Government plan to consider making adjustments to the amount of block grant being removed? I know the issue will be resolved but the Azores judgment specifically says that there has to be a balancing to ensure that any money that could be gained through corporation tax has to be taken away from another area. Therefore, if the amount gained through cutting corporation tax is not realised, does the amount of the block grant still go down by that amount? I have reservations about this devolved matter but if we are to work with the Executive and the people of Northern Ireland to secure the stable and resilient economy that we want to see we have to listen to local decision-makers and take on board their arguments on these issues.
Finally, I understand that the Government are establishing a working party—it may already have met—with Northern Ireland representatives and UK Ministers. Given the significance and impact of this issue it would be helpful to have representatives from all the political parties on the Executive discussing and examining it.
Lord Shutt of Greetland
My Lords, I congratulate the noble Lord, Lord Lexden, on securing this splendid and important debate. I am grateful to your Lordships for the quality of their contributions. Noble Lords have travelled down memory lane but in so doing have provided tremendous insight into the journeys and experiences that have ultimately brought them to this House. It is a privilege to listen to so many wonderful contributions.
The coalition Government’s commitment to rebalancing the Northern Ireland economy is one of the key objectives we share with the Northern Ireland Executive. The recent announcement by the Chancellor that air passenger duty in Northern Ireland would be reduced and then ultimately devolved to the Assembly shows that we are prepared to act decisively and creatively in order to keep the economy moving. I believe we all agree that the Northern Ireland economy is overreliant on public sector spending. The situation is understandable—one of the sad legacies of the Troubles is that the economy stagnated in Northern Ireland while it grew elsewhere. The support of the public sector was necessary, but both now and in the longer term relying on those levels of public spending is unsustainable.
The Northern Ireland Executive and Invest Northern Ireland have had some notable successes in attracting investment in recent years, with new entrants to the Northern Ireland market such as the New York Stock Exchange and Citigroup and the expansion of existing businesses such as PricewaterhouseCoopers—all creating jobs which add value to the Northern Ireland economy. However, these successes are not enough. Northern Ireland still has some way to go and, for that reason, the Treasury consultation paper on rebalancing the Northern Ireland economy set out some radical proposals for discussion.
The business community has made the case that a reduction in corporation tax to a level similar to that in Ireland would kick-start inward investment and growth, sending a resounding message that Northern Ireland was open for business. Those responsible for attracting inward investment in the Republic are adamant about the role their business tax regime has played in ensuring that even during the global economic downturn Ireland remains at or near the top of the global rankings for attracting inward investment and jobs. The head of the Irish economic development agency has said that the 12.5 per cent corporation tax rate is the “cornerstone” of Irish industrial policy.
However, we need to be cautious—as has been repeated here—because low corporation tax is not a silver bullet. Infrastructure, education, training and the planning regime all play a key role, too. The Exchequer Secretary has written to the First Minister and Deputy First Minister about the creation of a working group to further examine issues raised during the consultation period. The work of that group will be vital in gaining deeper insight into the potential costs, benefits and administrative hurdles associated with a tax reduction. We must not try to pre-empt the outworkings of that process. No decisions have yet been made, but we all look forward to the insight that the ministerial group will give to the issue.
I will now endeavour to pick up the points raised during the debate. The noble Lord, Lord Lexden, referred to the working group and hoped that I would add something on it. The noble Baroness also referred to it. It is only in recent days that the invitation was put to the Northern Ireland Executive asking them to nominate Ministers to serve on a group. Their decision was to come up with four Ministers—the First Minister, the Deputy First Minister, and the two Ministers responsible for finance and for trade and industry. The point was made about business as usual and getting on with life in the way in which others would. The four Ministers have been put up. The Executive were asked, “Who would you like to serve on the group?”. It was not even asked of them, “How many would you like? Who would be the appropriate people?”. The Executive have chosen those four people because of their function. They will, of course, be able to report back to the Northern Ireland Executive. Three parties who also have jobs in the Executive are not among those four people. In effect, it is the people themselves on that Executive who have come up with the four people who they think are right to serve on that group.
Lord Kilclooney
As to the cost of reducing corporation tax in Northern Ireland, the Chancellor of the Exchequer during his most recent visit to Northern Ireland said that reducing the tax could mean a reduction in the block grant of £400 million. This committee will now consider what would be the cost of the tax reduction. Is it not surprising that various businesses and organisations supported the reduction of corporation tax without even knowing how much it was going to cost the people of Northern Ireland?
Lord Shutt of Greetland
There is work to be done, which is why the committee has been set up to look at the detail of how this would work. Think about this: in this jurisdiction, we have income tax rates of 20 per cent and 40 per cent, and 50 per cent for people earning in excess of £150,000. In the Republic, the tax rates are 21 per cent and 40 per cent. In this jurisdiction, we have VAT of 20 per cent. In the Republic it is 21 per cent. It is even stevens.
On corporation tax, our rate is at 26 per cent, being reduced to 23 per cent, but in the Republic it is at 12.5 per cent. The Republic has held discussions with Europe as to how to endeavour to solve its troubles. Of course, it was under great pressure not to have that low rate of corporation tax. I find it instructive that the Republic has fought tooth and nail to retain a 12.5 per cent rate. I turn to the noble Lord, Lord Bew, who has been moving on this issue. The Republic’s clear view that that 12.5 per cent rate has been so important concentrates the mind. I understand that.
The noble Lord, Lord Alderdice, asked whether the Northern Ireland Executive are up to the job. It is not for me to take a view on whether people are up to the job. They have been elected and, under the system there, various people have executive roles. I am led to believe that we will not have to wait that much longer for a programme for government. On rebalancing the economy, the discussions are not a done deal, but if the rebalancing on corporation tax can take place, that may well energise them to look at other areas where the Executive can do what they can do to rebalance the economy.
Five sets of people are involved: much depends on the devolved Government, what they can do and the powers that they have, including with what is clearly a well-thought-of organisation, Invest Northern Ireland; there is also what this Government can do, although because of devolution that is somewhat limited—that is one reason why this idea has come from the Secretary of State; there is the involvement of Europe; there is the use of the cross-border entities, particularly on tourism; and, very importantly, there is the inventiveness of the private sector itself, which is a point that has already been made by several noble Lords.
I was very impressed by the contribution of the noble Lord, Lord Black of Brentwood. I am always impressed by that which I do not expect and do not know about which arises in debates in this House. On culture, the city of Derry/Londonderry will be the city of culture in 2013. Bearing in mind the detail of what the noble Lord had to say, I felt that he could well be placed as a consultant to the Northern Ireland Executive on cultural matters.
The noble Lord, Lord Empey, referred to food and was the one person who said that this was not about bother in Northern Ireland but about the economy of Northern Ireland. It is not for the UK Government to say where Invest Northern Ireland’s priorities ought to be. The noble Lord makes the very valid point that for so many reasons it is clearly an area that should be looked at as a possibility for investment. Of course, it would be for the Northern Ireland Executive to take that view.
I am concerned about the time. My time is up. If there are any specifics and anything that I have been asked about to which I have not responded, I will endeavour to do that. It has been a splendid debate on the possibilities of what can be done, based on the rebalancing report and splendid introduction made by the noble Lord, Lord Lexden. I hope and believe that so many of the contributions will be noted by Her Majesty’s Government as we go forward.