EU Referendum: Timing

Baroness Ritchie of Downpatrick Excerpts

Tuesday 9th February 2016 Commons Chamber

[Ms Margaret Ritchie (South Down) (SDLP)]

Does the right hon. Gentleman agree that having elections to the devolved Administrations and the campaign for the European referendum running in parallel could obfuscate the issues and confuse them? Politicians in the devolved Administrations should concentrate on the principal issues of health and education, and working towards an evolving programme for government.

[Mr Dodds]

Again, that illustrates the point. The hon. Lady and I may have different views on EU membership and so on, but we agree on the need for a full and comprehensive debate that is not caught up in the election campaigns for the devolved Administrations. I will discuss that in more detail shortly. .

--- Later in debate ---

[Ms Margaret Ritchie (South Down) (SDLP)]

I am pleased to follow the hon. Member for Ochil and South Perthshire (Ms Ahmed-Sheikh). I rise to speak in support of the motion and I would like to take the opportunity to commend the right hon. and hon. Members responsible for it. We may not agree at all times, and perhaps not even on the very issue on which the referendum will be held, but I none the less hope that the debate so far has motivated a desire for a fair and open debate on the EU referendum.

As other hon. Members have said, we should be worried about electoral fatigue setting in among the voting public this year. I know, however, that people will still want to register their votes. What I am more concerned about is the issue of purdah, which was raised by the right hon. Member for Gordon (Alex Salmond). We will have two periods of purdah running from the end of March to 23 June—if that is the date. Many of us have been led to believe that that is the date in the Prime Minister’s head, subject, of course, to his getting agreement in Brussels on 18 February. Notwithstanding that, to me and to my party colleagues it is undemocratic to have such a period of purdah, because it prevents Ministers, MPs and members of devolved Administrations from properly representing their constituents.

[Alex Salmond]

The hon. Lady will have heard earlier one of the “speeches for England,” to quote the Daily Mail, in which it was suggested that an Administration being elected and then going into an immediate period of purdah was somehow a good thing. Can the hon. Lady explain that extraordinary argument any better than the hon. Member who made it?

--- Later in debate ---

[Ms Ritchie]

The right hon. Gentleman makes a very helpful intervention. I did not think that that comment, made from the Government Benches, was all that helpful. I believe that such periods of purdah will simply stultify a democratic institution in undertaking its new work in preparing a programme for government, detailed work for ministries, and a strategy and plan—whether in finances, resources or in any other discipline—for the next four to five years of that Administration. It would minimise the amount of time available to an Administration for preparation.

It is not hard to imagine, if I may be parochial and talk about Northern Ireland, that we will have two campaigns running at the same time. Important issues such as health and education, policy making and setting a programme for government could be erased from the front pages of our local newspapers and from hustings as the press devotes time—perhaps quite rightly—to the big issue of the EU referendum and all the political drama that that will entail. The two elections should be separate. They should be conducted separately to allow a full and active campaign and debate to take place. There are major issues in the EU referendum. I come to this as somebody who wants to remain within the EU, because I have seen clear benefits of Northern Ireland being a member. I believe my colleagues in the Democratic Unionist party take a different view. Notwithstanding that, there needs to be time for a measured and considered debate on this issue, irrespective of which side people are on.

Many issues have been raised today, but we do not want to get into the whole area of partisanship. As one who represents a constituency in Northern Ireland, I believe that our membership of the EU should not be moulded by identity issues. That is the nature, I suppose, of Northern Ireland, but the debate about membership of the EU is very serious, complex and deserves to be given adequate space and time. Between now and 23 June does not provide that adequate time and it is vital that the Government appreciate the danger of that. No matter what anyone claims, Northern Ireland’s place in the EU is not an identity issue. It is not a nationalist or a Unionist issue and it should never be treated as such. The funding that came, and continues to come, from the EU, whether for agriculture or through the fisheries fund announced yesterday in Poole in Dorset for the next five years, is for all communities. All communities can derive benefit from that. The cross-border trade enabled by the EU is worth billions each year. It does not just bring jobs and growth to one community, but to all of Northern Ireland.

We need to address another particular issue as part of that: the south of Ireland remaining in the EU. The issue that needs to be considered is the one I put to the Prime Minister last week. How is the free movement of people within the island of Ireland going to be facilitated if the UK chooses Brexit? That issues needs to be discussed, so the referendum should not be held on 23 June.

--- Later in debate ---

[Sammy Wilson]

It does. I accept that. I was simply stating that the Minister had indicated he was going to make a clueless speech. The one thing I would say to him is that he has already ruled out certain dates, so ruling out one more day in the 670 days that remain before the last date on which the referendum could be held is not an unreasonable request, especially when there has been such unanimity among the devolved Administrations to do so. I hope that the Minister carries back the message that has come from the Chamber today.

Let me go through some of the arguments used by those who oppose the motion. The first is that using the term “rushed” is a bit over the top. I noted that the hon. Members for Pudsey (Stuart Andrew), for Macclesfield (David Rutley), for Blackpool North and Cleveleys (Paul Maynard) and for Milton Keynes South (Iain Stewart) all queried the point about the referendum being rushed. Of course the debate about our membership of the EU has been going on for some time now, but the referendum is going to be on the Prime Minister’s promised reform, and we do not yet know the terms of what he has got. Those issues will have to be addressed along with all the wider issues affecting our membership of the EU.

It is not a question of our simply having talked about the issue for a long time. The same thing could be said about what happens between one election and another. All the issues pertaining to an election are discussed over a five-year period, but the election campaign is the time when people focus most on those issues. When we talk about the referendum being rushed, we are simply asking why we should compress the debate into a short period, especially when it has implications for the devolved Administrations.

I have not heard any Member answer the point put time and again by the right hon. Member for Gordon (Alex Salmond): how this will affect Administrations that are having elections. Governments will need to be formed after the elections, but instead of getting into the full role of forming a new Government, a new Administration and a new programme for government, we will be into another period of purdah for at least six weeks—after having one of at least four weeks beforehand. That is disruptive of government, and this important point has not been addressed by any Members participating in the debate.

[Ms Ritchie]

Does the hon. Gentleman agree that there is a need, an urgency and an obligation on the Government to provide a Minister to answer that particular issue about the disruption to democracy resulting from two periods of purdah?

[Sammy Wilson]

Yes, and we have heard allegations that straw men are being put up to indicate, for example, that the electorate would be confused. However, my right hon. Friend the Member for Belfast North never claimed that. He simply made the point that conflating the election campaign with the referendum campaign was inappropriate where different nations and different issues apply. Indeed, parties will be competing with each other in the Assembly or devolved Parliament elections, but they might want to co-operate during the referendum campaign, so further confusion is introduced there, too.

Oral Answers to Questions

Baroness Ritchie of Downpatrick Excerpts

Tuesday 19th January 2016 Commons Chamber

[Mr Osborne]

We have a deal, because that is exactly what we are doing with the west midlands. We have worked with different political parties: I have met both Labour and Conservative authority leaders and Members of Parliament in the region, and we have collectively agreed to have an elected Mayor and to hand significant powers from this place and the Government to the people of the west midlands. I think that that is one of the most exciting steps that have been taken in the devolution of power in this country.

[Ms Margaret Ritchie (South Down) (SDLP)]

What further discussions have taken place with the devolved Administrations about the introduction of fiscal incentives to pump-prime apprenticeships and economic growth?

[Mr Osborne]

We are in discussions with the Northern Ireland Executive about what we can do to support the economy, and it is great news that we are now moving forward with the additional resources for capital investment there. Of course, one of the things that we would really like to see is the devolution of corporation tax rates, for which we have legislated, and provided that we can reach agreement on the budget implications of that measure, it would provide a massive boost for Northern Irish businesses.

Oral Answers to Questions

Baroness Ritchie of Downpatrick Excerpts

Tuesday 1st December 2015 Commons Chamber

[Mr Osborne]

The OBR has made its assessment, but what it shows is that productivity growth picks up through this Parliament. The hon. Gentleman and I have had many discussions about this, and I think we are actually in agreement that productivity is a long-term challenge for the UK and has been a challenge for many decades. We are trying to solve that by measures like the apprenticeship levy which will be one of those so-called taxes he describes. It is not a tax in that people get their money back if they have enough apprentices, so it is a levy, and it is the kind of thing we need to try to deal with the productivity challenges in the UK.

[Ms Margaret Ritchie (South Down) (SDLP)]

As part of his look at fiscal steps to support businesses, will the Chancellor give favourable consideration to the extension of the rural fuel rebate scheme to regions that have not already been considered?

[Mr Osborne]

I am very happy to give consideration to that. We are operating within the maximum flexibility that we believe the European Union rules allows us on this. Any postcode that possibly qualified we put forward for the scheme we introduced in the last Parliament, but I am happy to look at specific cases in Northern Ireland to see if they qualify, too.

Oral Answers to Questions

Baroness Ritchie of Downpatrick Excerpts

Tuesday 21st July 2015 Commons Chamber

[Damian Hinds]

Indeed, families with twins will get double the benefit, but everybody with children aged three and four will get that particular benefit, which is part of a suite of increases in childcare support, including through universal credit and tax-free childcare.

[Ms Margaret Ritchie (South Down) (SDLP)]

6. What assessment he has made of the implications for his policy of the European Commission’s decision that part of an exemption from the aggregates levy constituted unlawful state aid; and if he will make a statement.

[The Exchequer Secretary to the Treasury (Damian Hinds)]

In March, a European Commission state aid investigation into the aggregates levy exemptions found almost all of them to be lawful. The Chancellor announced in his summer Budget that these lawful exemptions will be reinstated from August. However, the Commission decided that part of the exemption for shale aggregates provided unlawful state aid. Her Majesty’s Revenue and Customs is in contact with potentially affected businesses, and we will minimise the impact as far as possible.

[Ms Ritchie]

I thank the Exchequer Secretary for his answer. He will be aware that shale is fundamental to the quarrying industry in my constituency, so can he explain to the House: what persuasive case was made by the Treasury to the Commission in that regard?

[Damian Hinds]

I appreciate how important the shale industry is in County Down. Of course we are very disappointed that the Commission made this judgment on part of the shale exemption, having previously found all the exemptions to be legal in 2002. I say to the hon. Lady that if any businesses in her constituency have particular issues to raise, they should talk to HMRC, and it will continue to provide support through the staged payments of other taxes through the time to pay scheme.

Budget Resolutions and Economic Situation

Baroness Ritchie of Downpatrick Excerpts

Monday 13th July 2015 Commons Chamber

[Ms Margaret Ritchie (South Down) (SDLP)]

I congratulate the hon. Members for Southampton, Itchen (Royston Smith), for Chippenham (Michelle Donelan) and for Somerton and Frome (David Warburton) on making their maiden speeches.

The Secretary of State for Communities and Local Government said that this is a Budget for working people and families. From my perspective, and that of the constituents I represent, nothing could be further from the truth. The Budget is an assault on low-income families. It is unfair to welfare recipients, the young and low-paid workers, as my hon. Friend the Member for Wolverhampton North East (Emma Reynolds) and the hon. Member for Glasgow Central (Alison Thewliss) have stated quite clearly. That needs to be redressed, and pretty urgently.

The Budget is most unfair to the regions of the UK that are most dependent on social security, that have a youthful population and where there is a higher prevalence of low pay. Only this weekend The Observer referred on its front page to a report coming out later this week from the Intergenerational Foundation showing that the gap in pay, rewards and values between the young and the old is widening, and that young people and future generations will be at a considerable disadvantage.

I mentioned the regions of the UK that are most dependent on social security and that will be gravely disadvantaged as a result of the Budget. One such region is Northern Ireland, one of whose constituencies I represent. The Budget provides for an overall transfer of wealth from the less well-off to the more well-off; on the one hand we see a benefits freeze, withdrawal of tax credit and persecution of young claimants, and on the other hand we see significant breaks for inheritance tax and taxation of share dividend income for people who are already doing well. The Budget even has a substantial tax break for big cars.

The Government’s claim that “We’re all in this together” collapses both at the level of the individual and regionally within the UK. At the more macro-economic level, it represents a significant transfer of resources from the poorest regions of the UK to the wealthiest.

In relation to underpinning our local economies, the Government missed a trick. Only last week, colleagues and I formed the all-party parliamentary group on the visitors economy. Part of this is about pump-priming our local economies, but, in addition, the Chancellor should introduce fiscal incentives such as changes to air passenger duty, or devolve the power to do so to the devolved regions. He should also, on a UK-wide basis, reduce VAT on tourism, because evidence from internal modelling within the Treasury shows that this would be a revenue-neutral measure.

The other key measure that would help to pump-prime the economy is the reinstatement of the aggregates levy credit scheme, particularly in Northern Ireland. I would like the Treasury to push the European Commission on that. There is also a need for the Treasury to tell the Commission that the withdrawal of the scheme and the exemption for shale on which the construction and quarrying industry in my constituency is so dependent must be reversed. The request for the recovery of moneys from the past 12 years will place many companies and industries in my constituency at a severe disadvantage.

When we talk about this Budget, we talk about more people in poverty, more people dependent on food banks, and more people looking for other means in order to survive. Why are public sector workers facing another four years of a 1% pay increase? Why have they not been given a more significant increase? The public sector workers who give so much to our local economies are being severely disadvantaged.

The Government need to rethink this Budget. In the comprehensive spending review, they need to look at ways to prioritise spending which underpin our economy and take people out of poverty.

Tax Credits (Working Families)

Baroness Ritchie of Downpatrick Excerpts

Tuesday 7th July 2015 Commons Chamber

[Shabana Mahmood]

I think that what we are talking about is the cost of making work pay in the economy that we have at the moment. As I will explain in more detail later, the Government are doing things the wrong way round. As was pointed out by the Chair of the Work and Pensions Select Committee, my right hon. Friend the Member for Birkenhead (Frank Field), we must establish a higher-skill, higher-wage economy before we remove the support for those who are stuck on low pay. I would prefer people not to be in that position.

[Ms Margaret Ritchie (South Down) (SDLP)]

My hon. Friend is advancing powerful arguments. Does she agree that there is a compelling need for the Government to spell out how they intend to increase pay to a living wage, and increase economic growth, so that people can have more access to jobs in our economy?

[Shabana Mahmood]

I think that it is for the Government to tell us what they plan to do about the living wage, and I hope that the Minister will enlighten us when he winds up the debate. At the time of the general election, we made a manifesto commitment to incentivise employers to pay the living wage. The Government are welcome to steal that policy, but they should steal it—and allow it to embed a living wage, and higher wages, in our economy—before they start messing around with tax credits.

Oral Answers to Questions

Baroness Ritchie of Downpatrick Excerpts

Tuesday 16th June 2015 Commons Chamber

[Ms Margaret Ritchie (South Down) (SDLP)]

Will the Minister assure us that, as part of ensuring that people keep more of their incomes in their pockets, the Chancellor will not increase fuel duty in the forthcoming Budget?

[Damian Hinds]

During the last Parliament, the Government made difficult decisions in order to keep fuel duty frozen and save motorists £9 every time their tanks were filled. Of course, no decisions of that kind are cost-free, and difficult measures had to be taken so that we could afford the freeze. All taxes are kept under review, and my right hon. Friend the Chancellor will announce the details in the Budget.

The Economy

Baroness Ritchie of Downpatrick Excerpts

Thursday 4th June 2015 Commons Chamber

[Ms Margaret Ritchie (South Down) (SDLP)]

I congratulate you on your re-election, Madam Deputy Speaker, and your colleagues. I also congratulate all those Members on both sides of the House who made their maiden speeches today. I welcome the opportunity to speak in this debate on the Queen’s Speech, which focuses on the future and, in particular, the economy.

Given the grand claims we have heard from the Government, both before the general election and since, about a long-term economic plan that is working, one would be forgiven for thinking that the UK was in the midst of some kind of economic miracle. The truth, however, is that we are not experiencing any kind of economic miracle and that the recovery, such as it is, remains fragile. We still have record debt, notwithstanding the fact that the Chancellor announced today that Departments will be expected to make further savings through asset sales and that the Government are to sell off their stake in Royal Mail, which I regret and which will have an impact on the delivery of postal services to people across the UK.

We still have that record debt, which despite years of austerity is still rising, and there has not been sufficient growth to improve the fundamental economic ratios. The Government point to their record on job creation, which looks superficially impressive. Record numbers of people are at work, but in fact many of the new jobs are insecure and low paid and many people are doing more work, simply running to stand still. Those people are not feeling better off because they are not becoming better off. The new jobs are not driving economic growth or strengthening the economy because they are low value added and low productivity. Mark Carney, the Governor of the Bank of England, has recently highlighted the fundamental importance of raising productivity and diplomatically reminded us of the real Government failure in this area of economic policy.

The productivity failure is symptomatic of the wider failure to use more imaginatively the economic levers available to Governments. Instead of focusing on austerity and cuts, the Government could do more to stimulate economic activity in sectors that can yield an immediate contribution to growth and prosperity. The necessary stimulus can come from greater fiscal creativity and the smarter application of taxation. One such area is the labour-intensive industry of tourism. I firmly believe that the Chancellor and his Front-Bench Treasury team should give longer and deeper consideration to lowering VAT on tourism for all the UK.

Tourism is the principal economic driver in my constituency. Only last week, we hosted the Irish Open, which attracted 20,000 visitors each day. They came not only to witness our great golfers from the island of Ireland, Britain and elsewhere, including the guy from Denmark who won, but to get outside and sample our local hospitality—our restaurants, eateries and the rest of our tourism offering. But if tourism is to be more successful, the Government need to lower VAT. Northern Ireland—my constituency in particular—has a land border with the south of Ireland, whose VAT rate has been 9% for years, notwithstanding its austerity measures. Our VAT is 20%. It has become increasingly difficult to be competitive in such a world. I ask the Government and hon. Members to give the issue due consideration because fiscal flexibility will help achieve better economic prosperity for difficult regions.

Oral Answers to Questions

Baroness Ritchie of Downpatrick Excerpts

Tuesday 10th March 2015 Commons Chamber

[Danny Alexander]

We have met that commitment in the present Parliament, and we will do so in 2015-16 as well. Spending on defence will, of course. be a matter for the next spending round. However, I suggest that the hon. Gentleman should have regard not just to the total amount spent, but to the efficiency of the expenditure. We have made great progress during this Parliament in securing better value, in terms of defence equipment and output, for the limited money that we have to spend as a country.

[Ms Margaret Ritchie (South Down) (SDLP)]

The Treasury has had meetings with the European Commission to discuss the reinstatement of the aggregate credit levy scheme for Northern Ireland, which could serve as a further tool of investment in infrastructure. What further discussions have taken place?

[Danny Alexander]

I know that discussions have been ongoing, and that the issue has been the subject of a protracted dispute. I have no further updates, but I will ensure that my ministerial colleague who is responsible for the scheme writes to the hon. Lady.

Corporation Tax (Northern Ireland) Bill

Baroness Ritchie of Downpatrick Excerpts

Wednesday 4th March 2015 Commons Chamber

[Mark Durkan]

We await with bated breath the Minister’s great revelations and technical epiphanies.

Whatever the Financial Secretary says about the complex dimensions of this, there is nothing complex about the simple logic and justice of the proposition that wholly and solely-owned mutuals and credit unions should be able to benefit from a devolved tax rate.

[Ms Margaret Ritchie (South Down) (SDLP)]

Is my hon. Friend aware that the Assembly’s Committee for Enterprise, Trade and Investment, which he used to chair, is also supportive of the stance that he and other Northern Ireland Members are taking? It believes that mutual societies and credit unions based in Northern Ireland should be included within the Bill and able to avail themselves of the same reduced rates of corporation tax as other Northern Ireland-based organisations.

--- Later in debate ---

[Naomi Long]

I am aware of the pressure to want to do that quickly, but it is also important that, as the Executive do that, the cost of it to the Northern Ireland economy is thoroughly assessed and we work out how we are going to pay for it in the interim. Otherwise, before we reap the benefits, we could leave a gap in our public finances that creates pressure, particularly from those that are already under financial pressure. It could lead to a push back against the corporation tax reduction. Getting that balance right is important. I agree that it would be wrong for people to be unnecessarily tardy, but I also think it is important that proper due diligence is done around what that level should be.

Reaping the maximum benefit from the changes under this Bill requires political stability. It requires people, when they look to Northern Ireland, to see the positive images that are so often broadcast, as opposed to some of the more negative images we have seen in recent years. If we want lasting prosperity, it has to be shared among everyone in our society. It is therefore hugely important that we see political maturing not just in terms of the Unionist-nationalist question and how that is handled politically in Northern Ireland, but in terms of the productivity of the Assembly.

[Ms Ritchie]

Does the hon. Lady agree that along with having corporation tax as a financial lever, and the need to create political and economic stability in Northern Ireland and the need to encourage people to come and visit, there is also a need for the Treasury to look at reducing VAT on tourism? That would enable us to be more competitive with the south of Ireland in terms of visitors and the economy.

[Naomi Long]

I am aware that the hon. Lady has long since advocated such a move, as have I. Unfortunately, the Treasury response has been that in some way reducing the VAT on leisure would encourage people to have a rather lackadaisical attitude to the workplace. In fact both inward and outward tourism generates a significant amount of money into our economy, so I think a future assessment would be valid.

Today marks a very welcome step forward in the potential for Northern Ireland to rebalance its economy and encourage further growth of the public sector. I hope that when the Executive meet, as they will do over the coming months, they will meet the challenge of setting the rate and stepping up around infrastructure and skills, as well as around stability and peace building. We will then be able to reap the maximum reward for the work that has been done.

--- Later in debate ---

[Ian Paisley]

This is not the place to debate all of the Stormont House agreement, but given that we were instrumental in helping to achieve it, we will, of course, be pursuing every line, every jot and every tittle to ensure that we get the best deal for Northern Ireland in all of that arrangement.

Between 2013 and 2014 we had a record year of investment in Northern Ireland. Nearly 11,000 new jobs were promoted and 23 first-time investors were welcomed into Northern Ireland. If we can do that in one year in advance of the corporation tax Bill, what can we not do if we can now go out around the world and start to market Northern Ireland as the place with what I hope will be the lowest level of corporation tax on these islands? If we can do that, we really will have the opportunity to see Northern Ireland attracting even more companies. Our attracting 23 new, high-calibre investors in the past year, in the hard economic climate we have been coming out of, is a signal that things they are a-changing.

[Ms Ritchie]

Does the hon. Gentleman agree that as part of lowering the level of corporation tax in Northern Ireland there is a need not only to rebalance the economy, but to ensure that a balanced regional development approach is taken to the location of foreign direct investment and other investment, to ensure that all citizens benefit from this lowering of corporation tax?

[Ian Paisley]

The hon. Lady makes a good point—it is key. This tax is not just about investment in Belfast, Londonderry or key cities; it is about investment in the whole of Northern Ireland. The Prime Minister recently stated that he wanted to make the United Kingdom the “factory of Europe” and attract more jobs into the UK, and I hope he was speaking for every part of the UK. I hope he wanted to see those investments coming across not just to London and the south, but to all of the UK, because that is what we really need—we need more investment. I know that the hon. Lady wants to see investment in her constituency. My constituency is carrying what is going to be the single largest job loss in Northern Ireland in several years, with the closure of the JTI Gallaher factory in 2017. I want to see those jobs filled. I want to see opportunity created whereby more investment will be happening in my constituency and more factories will be brought there. If the current Government are returned, I hope that they will add meat to the bones of that call to turn the UK into the factory of Europe by bringing jobs, not only to the hon. Lady’s constituency, but to mine and, indeed, to all our constituencies. I hope we see a balance in the investment that is going to be made.

In an earlier intervention, the hon. Lady also called for a reduction in VAT, especially on our tourism trade, and I fully support that. Tourism is one of the key areas where we are trying to grow our economy and attract new business investment, with new hoteliers and new companies. If we can reduce VAT in that sector, we will see it grow. Again, we compete with the Republic of Ireland in that sector, but it has a lower tax rate and that damages us. We really need to try to make progress on that.