Finance Bill
Baroness Ritchie of Downpatrick ExcerptsFriday 17th July 2020
(4 years, 5 months ago)
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Baroness Ritchie of Downpatrick (Non-Afl) [V]
My Lords, it is a pleasure to follow the noble Lord, Lord Young of Norwood Green.
In many ways, I find it slightly surreal that we are discussing this Finance Bill today. The 11 March Budget, on which the Finance Bill is based, feels like a relic from another age. The Covid-19 pandemic means that we are now living in a completely different world. It has led to an economic contraction of 25% and the total cost of emergency measures could run as high as £300 billion. These are eye-watering figures.
The recent mitigating measures announced by the Chancellor are largely welcome as far as they go, but the extent of this crisis means that the Government need to engage in some bold and imaginative new thinking, including the relief on stamp duty for house buyers for one year. I hope the Minister will advise us of further thinking in this regard.
Covid-19 has created huge volatility and uncertainty, and the economic shock waves will be with us for years to come. This means that the policies of the past and the effect that they have, in both the public and private sectors, need a thorough examination. Nothing should be left off the table. One particular focus should be on making public revenues work as hard as possible, and I am thinking particularly about tax reliefs. Earlier this year, the National Audit Office concluded that these should be reviewed, and I wonder if the Minister could provide us with some further detail on that.
I want to refer to a matter in Northern Ireland. Earlier this year, in the first week of January, the Government signed up to a wide range of financial commitments in the New Decade, New Approach all-party settlement. The then Secretary of State for Northern Ireland, Julian Smith, was congratulated on delivering this agreement with the Northern Ireland parties after a long downtime. There are important commitments in that document about getting Northern Ireland’s critical infrastructure—in particular, water, transportation and health—up to UK norms after years of underinvestment. Could the Minister investigate this matter and, if that is not possible today, come back to me in writing about when those financial commitments will be delivered as promised in New Decade, New Approach to ensure that we have proper and adequate delivery of devolution? The regions are left wondering about the disparities and inequalities.
Covid-19: Economy
Baroness Ritchie of Downpatrick Excerpts(4 years, 6 months ago)
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Baroness Ritchie of Downpatrick (Non-Afl)
My Lords, this pandemic has revealed the deep levels of poverty and inequality that are entrenched in many communities. Many of these existed prior to the pandemic but are now more acute. There have been greater levels of dependence on food banks for essential food provisions. Like the noble Lord, Lord Eatwell, I agree that most of this entrenchment has taken place since the period of austerity in 2010. Many people are now off work or out of work through furloughing. Some might not return to work if there are redundancies as a result of a deep depression. We need a review of economic and social welfare strategies, to reduce inequalities and ensure better levels of sustainability. There needs also to be action on climate, but I believe that this pandemic provides the Government, the Opposition and the wider community with the means to address these issues.
In Northern Ireland, tourism is one of our principal industries, and there has been an 80% drop in spend. Again, I turn to my old chestnut: will the Government consider, as part of a review of economic strategy, a drop in VAT for tourism products and the temporary abolition of air passenger duty to ensure that—subject to social distancing and all the other caveats—we get an increase in our numbers of visitors, who can then enjoy the level of tourism and the products that we have available? That would do much to enhance our local economy and ensure a reduction in inequality, and therefore sustain local employment. I ask the Minister to look at those issues.
EU: Plans for No Deal
Baroness Ritchie of Downpatrick Excerpts(4 years, 6 months ago)
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Lord True
My Lords, I am not going with any particular prediction on this question, as I did not on an earlier one—there will be a range of opinions—but I fully agree with the noble Baroness that, were we to stay attached to the EU beyond December, we would face uncertain, unknown but substantial costs in terms of our duties to make payments to the European Union.
Baroness Ritchie of Downpatrick (Non-Afl)
What resources will be provided to implement the Northern Ireland/Ireland protocol in terms of staff and finance?
Lord True
My Lords, I cannot give a particular figure in reply to the noble Baroness, but, as I have tried to stress to her before, the Government recognise fully the importance of securing the internal market with Northern Ireland and will do all in their power to assist with that and to maintain the position that exists now.
Northern Ireland Protocol
Baroness Ritchie of Downpatrick Excerpts(4 years, 6 months ago)
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Baroness Ritchie of Downpatrick (Non-Afl)
My Lords, further to the answers given about the EU office in Belfast, will the Minister specify in exact detail why the Government consider that this office is not necessary, when the British Government have clearly stated that they will facilitate arrangements. Surely, such arrangements equal the need for an office?
Lord True
My Lords, I do not agree that facilitating arrangements, which is what is stated in the protocol, necessarily translates into cement. We are looking for light-touch, easy arrangements. I can only repeat what I have said to the House I believe four times already this evening: the position of the UK Government is that it is not necessary for the implementation of our undertakings under the protocol.
Beyond Brexit (European Union Committee Report)
Baroness Ritchie of Downpatrick Excerpts(4 years, 7 months ago)
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Baroness Ritchie of Downpatrick (Non-Afl)
My Lords, I welcome the report and the references to the need for the EU and the UK to establish effective channels of communication and co-operation, plus the need to respect the Good Friday agreement in order not to weaken the confidence of unionist and nationalist communities in the political process. Unfortunately, I am afraid to say that the UK Government are not engaging properly with the EU, and with the pragmatic intent that the noble Lord, Lord Kirkhope, talked about, to resolve issues and to ensure, in the particular area where I live, the full implementation of the Ireland-Northern Ireland protocol.
Let me give two examples to show how the Government have not negotiated properly, with true intent. First, there is the issue of the transition: to obtain that good, effective deal, the transition period needs to be extended by two years, during this period of the pandemic. Secondly, the UK has refused to allow the EU to have a technical office in Belfast for the implementation of the protocol, to allow proper procedures to be put in place to deal with those customs arrangements at the ports and to provide unfettered access for business. Because of the shortness of time, I ask the Minister to address both those issues and to work with colleagues to ensure that that respect, pragmatism and level of co-operation return to the negotiations, to achieve an effective deal.
Budget: Economic and Fiscal Outlook
Baroness Ritchie of Downpatrick Excerpts(4 years, 7 months ago)
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Baroness Ritchie of Downpatrick (Non-Afl)
My Lords, both documents that we are taking note of today are now simply historical because they have been overtaken by the unprecedented circumstances of the coronavirus, which has dented our economy. Perhaps I may give an example of that in a Northern Ireland context.
Unemployment is predicted to rise to 10.5% this year, and many of those affected will be very young people—young graduates and young people leaving school—who will find themselves out of the door, having just been brought in through the door of employment. In fact, the economy is set to contract by between 7.5% and 10.5%, which is unacceptable. However, there are other issues that we have to take into account. The other shock to our economy is Brexit. I firmly believe that today the Minister has to tell us what plans there are on the far side of the coronavirus pandemic to underpin, develop and revive our economy.
As a remainer, I accept that we are leaving the European Union, but in relation to Brexit there are two outstanding burning issues that require resolution. The first is the transition period. Because of the coronavirus, there is insufficient time to deal with the trade agreement. For that reason, in spite of what the Minister said today and what the Government said last week, I urge the Government to extend the transition period. Secondly, the Government are not engaging properly with the European Union to obtain a good deal, and in that respect I cite the discussions that have been held on the transition.
I want to make another fundamental point. In February 2019, the European Union asked to be given offices in London, Edinburgh, Cardiff and Belfast. At the time, the Government promised that the EU would have permission to arrange that. The Ireland/Northern Ireland protocol requires the EU to have an office in Belfast to forge the technical details. However, I have received a Parliamentary Answer from a Minister, who has informed me that that will not be possible. That is outrageous. That office is needed to work out and fully implement the technical details of the protocol —for example, the question of unfettered access. Perhaps the Minister can respond to those issues today.
Public Services: Update
Baroness Ritchie of Downpatrick Excerpts(4 years, 7 months ago)
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Lord True
My Lords, obviously, education is of critical importance. As my noble friend will know, some schools have stayed open to provide support for the children of key workers—I express our gratitude to them. It is right that we should congratulate and commend the professionals who have done that in the circumstances. I understand the aspiration to return to school, whether it comes from children or from parents and grandparents. I remind the House of the five tests —so far I have not—which are vital if we are to sustain the fight against Covid. Those have not all been met, but obviously, as the Prime Minister said when he came out of hospital, consideration is being given to the future. The key task currently is to protect the NHS, save lives and protect lives, and, as the Prime Minister put it, this is a moment of maximum risk, as well as of maximum opportunity. I understand what my noble friend said and I assure him that the Government are well aware of many people’s aspirations. However, for the moment we must keep on with social distancing.
Baroness Ritchie of Downpatrick (Non-Afl)
My Lords, I have strong solidarity with all public sector workers. What are the plans for the post-Covid economic strategy, and when will we have sight of them? Perhaps the Minister could ask his colleague the Chancellor about them.
Lord True
I thank the noble Baroness. It is of course in the hands of the Chancellor. I am sure the noble Baroness would agree that his massive response to this crisis, helping businesses and families, and supporting those in need, has been unprecedented and striking. We are obviously still in the middle of these circumstances and do not know how long this is going to continue. The noble Baroness will understand if I cannot anticipate what will happen in the weeks and months ahead, but I assure her that the Chancellor is vividly aware of the impact of the present crisis on the economy, and what it means for real people whogo out to work to make the resources that the country needs.
Brexit: Financial Assistance for Businesses
Baroness Ritchie of Downpatrick Excerpts(4 years, 9 months ago)
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Baroness Ritchie of Downpatrick
To ask Her Majesty’s Government what financial assistance they have provided to businesses in the United Kingdom to deal with the ongoing costs of staff training and administration as a result of the new customs rules brought in due to the United Kingdom’s departure from the European Union.
The Minister of State, Cabinet Office and the Treasury (Lord Agnew of Oulton) (Con)
My Lords, the Government are committed to supporting businesses in preparing for new customs processes. Since November 2018, HMRC has provided grants to help support traders, hauliers and the customs intermediary sector. This has seen some £34 million set aside to support employee recruitment, customs training and improvements to IT. Earlier this month, the Government announced the extension of the grant programme until 31 January 2021. Approximately £7.5 million of funding is still available.
Baroness Ritchie of Downpatrick (Non-Afl)
My Lords, I thank the Minister for his Answer. Given the statement from the Secretary of State for Northern Ireland this week that there will not be a regulatory border in the Irish Sea, and that EU Ministers warned the UK Government yesterday that the chance of reaching a trade deal will be damaged unless preparations begin for checks on goods coming into Northern Ireland ports from Great Britain, could he clear up the confusion in an unequivocal manner regarding the regulatory border issue? I understand that the London Port Health Authority has not received any such resources as those that he referred to, and I do not think that ports in Great Britain serving the Northern Ireland ports have either, so what additional resources have been made available to deal with customs preparations in terms of staff training and administration in order to comply with the Ireland/Northern Ireland protocol, as Northern Ireland will still operate under EU rules for agriculture and manufacturing products at the end of the transition period?
Article 50
Baroness Ritchie of Downpatrick Excerpts(7 years, 8 months ago)
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The Prime Minister
My hon. Friend is absolutely right. The negotiations will be detailed, but we must always keep in our vision the big picture, as he describes it, that this is about control of our laws, control of our borders and control of our budgets. That was what people voted for when they voted to leave.
Ms Margaret Ritchie (South Down) (SDLP)
Michel Barnier, who will be directly involved in the negotiations, has put Northern Ireland at the top of his agenda because he was directly involved in the negotiations to establish the Special EU Programmes Body. Will the Prime Minister outline how she will ensure the protection of our fragile economy in Northern Ireland, and ensure tariff-free and continued access to the single European market, which is vital to the growing economy of the island of Ireland?
The Prime Minister
In overall terms, negotiating a comprehensive free trade agreement with what we want to achieve, which is tariff-free trade with the European single market, will cover the whole of the United Kingdom, including Northern Ireland. However, due to the land border between Northern Ireland and the Republic, we are conscious of the need for us to look carefully at the customs arrangements that will be put in place. We want to be able to have trade agreements with other countries around the world, and that has implications for the current rules in relation to membership of the customs union, but we are working actively with the Government of the Republic of Ireland to ensure that arrangements can be put in place that maintain the economy in Northern Ireland. As we have consistently said, and as the Taoiseach and others have said, we do not see a return to the borders of the past.
Oral Answers to Questions
Baroness Ritchie of Downpatrick Excerpts(7 years, 10 months ago)
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James Brokenshire
My hon. Friend will wish to know that we have a severe level of threat in Northern Ireland from terrorism. The appalling attack we saw on a young, brave police officer just in the past fortnight underlines the nature of that threat and the fact that there are those in Northern Ireland who would wish to commit acts of violence against the police, members of our armed forces and prison officers. We must be vigilant against that threat.
Mr Speaker
Does the hon. Member for South Down wish to contribute on this question?