Comprehensive Spending Review

Baroness Ritchie of Downpatrick Excerpts

Thursday 28th October 2010 Commons Chamber

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

When the comprehensive spending review was debated recently in the Northern Ireland Assembly, there was a general feeling that, against the budgetary framework outlined at the time when devolution was restored, we had been short-changed. Notwithstanding the protestations of the Secretary of State for Northern Ireland, we have been disappointed, to say the least. I note, however, the undertakings given today by the Chief Secretary to the Treasury that the Government will keep their commitments on track. The Members of Parliament for Northern Ireland will undoubtedly hold them to that.

During that debate in the Assembly, there was an air of financial realism. Perhaps for the first time in our recent history, it has become clear to everyone in Northern Ireland that we really are responsible for ourselves and for making the best use of the available resources. I hope that it might still be possible, however, to secure improvements around the edges of the published settlement, including guarantees on policing and security; access to end-year flexibility; latitude in how welfare reform is implemented in Northern Ireland, given its unique legacy; and more freedom to borrow. For this reason, I fully support the plans of the joint First Ministers in Northern Ireland to engage directly with the Prime Minister and the Chancellor.

The impact of the CSR settlement on Northern Ireland can be assessed in three parts. First, on current expenditure, we are facing a cut in real terms of 7% by the final year of the CSR. That is challenging, but it is not insurmountable. Secondly, in regard to capital expenditure—regardless of the smoke and mirrors put in place by the Chancellor, the Prime Minister and the Secretary of State for Northern Ireland—we have been left well short of our expectations. Thirdly, on capital investment, we faced a further downturn the other day with the suspension of the Northern Ireland aggregates levy credit scheme. I want to ask the Chancellor and his Treasury team to continue the negotiations with the European Commission to ensure that that is reinstated.

[The Economic Secretary to the Treasury (Justine Greening)]

This is a very important issue, and I want to take this opportunity to reassure the hon. Lady that that is precisely what we are doing.

[Ms Ritchie]

I thank the hon. Lady for her response.

The most important thing to us in Northern Ireland is the annually managed expenditure, through which our benefits are paid. What makes this iniquitous is the fact that the money does not come out of the Northern Ireland block, but directly out of the pockets and purses of benefit recipients. In Northern Ireland, that represents up to £0.5 billion being taken from some of the poorest households. The Prime Minister claims that that is fair, but what is fair about snatching the mobility allowance that is payable to people in residential care? What about the changes to child benefit? What about the changes to housing benefit? Are they fair? On the face of it, those large-scale welfare cuts have little to do with the laudable desire to help people move from benefit dependency to the dignity and self-sufficiency of gainful employment. They represent an old-fashioned onslaught on the poor.

I am a former Minister for Social Development in Northern Ireland with responsibility for benefits. Along with my successor, I have engaged in continuing discussions with the Department for Work and Pensions about welfare reform issues and the respects in which welfare reform proposals are inappropriate for Northern Ireland. I believe that we have reached a point at which we may need to redesign the social security system in Northern Ireland to make it much fairer for all, and to give ourselves greater freedom and flexibility to do things differently. I believe that that can be done without the need for an increase in the net subsidy to Northern Ireland.

We are doing a lot of thinking about how we can secure more local control of Northern Ireland’s economic levers, and we expect a robust but fruitful dialogue with the Chancellor when the promised economic paper on Northern Ireland is circulated by the Government within the next few weeks. The Chancellor indicated in last week’s CSR statement that both he and the Secretary of State for Northern Ireland intended to engage with all Northern Ireland Members of Parliament. As one of those Members of Parliament, and as a Northern Ireland party leader, I look forward to that discussion. There is no doubt that we need to rebalance our economy, but one thing that we must not do is throw the baby out with the bathwater and remove people from the public sector, because that will throw asunder our whole jobs and investment scenario.

Equitable Life (Payments) Bill

Baroness Ritchie of Downpatrick Excerpts

Tuesday 14th September 2010 Commons Chamber

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

I, too, congratulate the hon. Member for Congleton (Fiona Bruce) on making her maiden speech. She has a hard act to follow in Ann Widdecombe, and I hope that she will follow in her footsteps, if not her dance steps.

As you know, Mr Deputy Speaker, I represent a constituency in Northern Ireland. Like other hon. Members, I have been written to by many constituents, particularly elderly ones, about the unresolved, inexplicable and inordinate delay in bringing forward payments in a fair and equitable manner for Equitable Life policyholders. They are very proud people, many of whom are entrepreneurs in industrious communities. Some are farmers or bin men, and they represent a wide cross-section of the local population. Many of them are still waiting for the matter to be resolved, having waited a considerable time already.

I wish to make it absolutely clear that, in the majority of cases, those who invested in Equitable Life were not in the high income brackets. I can certainly say that on behalf of my constituents who were affected. In the majority of cases, their investment in Equitable Life over many years was itself a struggle to meet, but their sense of responsibility drove them to make that commitment to their future. I fear that when we talk of investors, it is all too easy to think about those in receipt of large pensions. We are talking about people in the lower and middle income brackets. Many of our constituents who are affected are farmers, fishermen, small business men, dinner ladies and librarians—and the list goes on. During their working lives, those pensioners contributed much to society for the minimum return.

There is a clear need to resolve the issue. Much forensic work has been done, including the reports of the ombudsman and Sir John Chadwick. However, we thought we had a resolution. On 11 May, the coalition Government issued a statement in which they agreed to implement the ombudsman’s recommendation to make fair and transparent payments to Equitable Life members, but sadly that has not happened. Hon. Members are now aware that such “fair payments” will be based not on the guidelines set out by the parliamentary ombudsman, but on those set out by Sir John Chadwick, which the Bill seems to follow.

The previous Government’s appointment of Sir John Chadwick was an attempt to devise a system of limited ex gratia payments, which would be made only to those who were disproportionately affected. The coalition Government appear to be continuing down that road, as we understand that the independent payments commission will abide by Chadwick’s proposals. Victims will receive less than 10% of their losses, and the total sum that the commission is working to repay will be a meagre £400 million, in the face of estimates by the Treasury’s own actuaries of much greater losses.

I caution the coalition Government against going down that route, not only on the grounds of the independent parliamentary ombudsman’s recommendation and fairness for the many investors who have been left quite desperate, but on the grounds of what is right and proper at the heart of government. The handling of the Equitable Life issue by the previous Government and the coalition strikes at the heart of democracy and at the question of how the Government treat many people.

[Alun Cairns]

I certainly accept the hon. Lady’s criticisms of the previous Administration, but does she accept that the coalition Government’s prioritising the Bill early in this Parliament demonstrates some sort of commitment? However, I recognise the need for greater negotiation with EMAG to reach an appropriate settlement.

[Ms Ritchie]

It would have been much better for the coalition Government to implement the ombudsman’s recommendations. That would have been much more democratic and it would have reflected the needs of all our constituents.

[Sammy Wilson (East Antrim) (DUP)]

Does the hon. Lady accept that although the coalition Government have been quick to introduce a Bill that enables payments to be made, the level of payment is equally important to our constituents, as is the commitment, which was made by both parties in the coalition before they entered government, to implementing the ombudsman’s report?

[Ms Ritchie]

I could not agree more with the hon. Gentleman. That is exactly right, and it is the kernel of the letters that I have received from my constituents. They want this matter resolved by amendments to the Bill to reflect what was said in the original ombudsman’s report.

The parliamentary ombudsman’s report is independent and transparent, but it is being overruled by a Government-directed report that results in less favourable terms for investors. Such injustice at the heart of successive Governments is a great slight on our democracy. I urge the Government, at this late hour—perhaps it is not too late—to make amendments so that the Bill reflects clearly the ombudsman’s report. Such amendments would show that we are truly earnest about helping some of the most beleaguered members of our society.

Economic Affairs and Work and Pensions

Baroness Ritchie of Downpatrick Excerpts

Tuesday 8th June 2010 Commons Chamber

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

Thank you for calling me, Mr Deputy Speaker. I greatly appreciate the opportunity to make my maiden speech in a debate about economic affairs, and in particular about the services and assistance that we provide for our most disadvantaged and vulnerable citizens. It is an honour for me to follow the hon. Members for East Hampshire (Damian Hinds) and for Birmingham, Ladywood (Shabana Mahmood).

The subject of today’s debate is one close to my heart, not least because until very recently it was part of my responsibilities as the Minister for Social Development in the devolved Administration in Northern Ireland. In addition, concern for the disadvantaged and the vulnerable has always been top of my political agenda and that of my party. The Social Democratic and Labour party is here to serve.

No one better personifies dedicated public service and a lifelong desire to improve the lives of fellow citizens than my predecessor Eddie McGrady. He has been an exemplary contributor to making Northern Ireland a better place for all its people, across a career spanning 50 years of steadfast public service. Unlike others, his leadership style has not been bellicose or loud. Instead, he is a member of that elite group of statesmen and politicians who make progress for everyone through their wisdom, dedication, patience and hard work. For me personally, he has been a role model and a true friend. I am proud of what he has done for the constituency of South Down. The evidence of his endeavours is there for all to see throughout that beautiful constituency.

I said that South Down was beautiful, and it is. Located in the south-eastern corner of Northern Ireland, it boasts at its heart the magnificent Mountains of Mourne, which play host to Northern Ireland’s highest mountain peaks and cradle the crystal-clear waters of Silent Valley that sustain our capital city of Belfast. South Down also has an extensive and charming coastline, stretching from Carlingford lough at the Irish border to the south, through the bustling harbour towns of Warrenpoint and Kilkeel and on to Newcastle where, famously.

“the Mountains of Mourne sweep down to the sea.”

The coastline curves northwards beyond that again, to the historic town of Downpatrick—the place that I call home.

Although there is some vibrant manufacturing industry and commerce in the area, the main industries in South Down are agriculture, fisheries and, increasingly, tourism. Regrettably, South Down also has its own pockets of deprivation. It is a very good example of a place where, if the kind of welfare-to-work initiatives envisaged by the Government are to have any success, there needs to be an accompanying concentration on job creation. For the House can rest assured that there are very few people I know, especially in South Down, who do not want to work.

As a former Northern Ireland Minister, I told the previous Government that a policy of pressing people into work when there are few jobs to go to could not prosper, and I repeat that message to the new Administration. I share the Government’s desire to help more people enjoy the dignity and self-sufficiency that comes from gainful employment but, in Northern Ireland, a policy of hounding people away from benefits when there are few new opportunities for employment will cause only hardship and resentment.

But let us be positive: I believe that we in Northern Ireland have it within us, now that all the pointless violence has ended, to make our economy take off for the first time in generations. We are attracted to the possibility of devolving tax-varying powers to the Stormont Executive—powers that will allow us, for the first time, to compete as equals in the quest for foreign direct investment. I very much welcome the indications from the Government that they will help us harmonise corporation tax on the island of Ireland.

We can do more for ourselves in many other areas, too. Northern Ireland has potentially a very rich renewable energy resource. It can be at the centre of our plans to develop the green economy. We also have huge potential in our agriculture and food industries to drive for higher added value. We have a well-educated and trained work force, and a world-class broadband infrastructure that can be the platform for the growth of our tradable sectors. We must get all of this moving if we are to be credible in offering work to everyone.

I also think Northern Ireland can harvest a major expansion of its tourism industry. We offer a well-priced and absorbing tourism product that is enhanced by high-quality hospitality and a genuinely friendly and welcoming people. The potential for tourism development is, I believe, at its most enticing in my own constituency of South Down.

In the Downpatrick area, we hold the authentic heritage of our national saint, Patrick, and that is something very special. The whole world celebrates his anniversary on 17 March, yet that same world has limited understanding of his story. It is a powerful and compelling story of bringing Christianity to Ireland and allowing it to blossom in a land of saints and scholars at a time when it was threatened with extinction in Britain and the rest of Europe.

Patrick transcends all our historic quarrels in these islands and in particular within the two traditions in Northern Ireland. He is a unifying figure and his message is one of reconciliation. He was a Roman Briton, and as such was our greatest ever import. He is, and can be even more, our greatest ever export. In special parts of South Down, we hold the sites where Patrick first landed in Ireland and where he built his first church, the healing wells where he bathed, the place where he breathed his last, and the grave where he now rests.

I am confident about the future and the ability that we have to improve the economy and the living standards of our people. I will work positively here to achieve those objectives, but each week I know that I will be returning to a special place. I invite all Members here to visit South Down, and Downpatrick in particular, where they can walk in the footsteps of Patrick.