Northern Ireland Budget Bill

Baroness Suttie Excerpts

2nd reading (Hansard): House of Lords & 3rd reading (Hansard): House of Lords & Committee: 1st sitting (Hansard): House of Lords & Report stage (Hansard): House of Lords
Tuesday 14th November 2017 Lords Chamber

[Baroness Suttie (LD)]

My Lords, it is always a great pleasure to follow the noble Lord, Lord Murphy, with all the experience and wisdom that he brings, and we had a fantastic example of this evening.

We on these Benches will support the Bill this evening. In the present circumstances, we believe that it is now essential. It is deeply disappointing that we have found ourselves in this position, but we recognise our obligation to the people of Northern Ireland to ensure that public services can continue. The Civil Service has been working on these assumptions, so the Bill is now required to give the legal authority to the full 100% cash flow needed, rather than the 95% allowed under Section 59 of the Northern Ireland Act 1998.

However, this position is far from ideal. The figures reflect the assumptions and the emerging Budget that the Sinn Fein Finance Minister was poised to recommend in January this year. However, there had already been delays to that Budget process, so a Budget had not been passed by the Assembly at the point of the Executive’s collapse in January. Moreover, the DUP and Sinn Fein had not agreed an economic strategy, a social strategy or an investment strategy for the financial year 2017-18.

I am deeply concerned that the Budget for next year—2018-19—will be considerably more challenging than the Budget before us today. Normally, a draft Budget would be going out for public consultation about now. Under normal circumstances, we would expect a draft Budget to be agreed early in 2018. I am concerned that it is now entirely possible that this process could drag on beyond the start of the new financial year.

As I said during the Statement last week, it has now been 10 months since the Executive collapsed. Northern Ireland is showing the strains of this political vacuum, with no one able to take the strategic and political decisions that are needed to grow the economy, ensure effective public services and build the shared society that we all want.

We are extremely concerned that in the absence of clarity about governance, there is no clear authority to put in place decisions and reforms that would allow money to be spent more efficiently and effectively. As a consequence, Northern Ireland is building up more and more problems for next year, and I am concerned about the impact that this will have on its people.

Setting a Budget is the most important act that any Government take. Robust public finances underpin the provision of services and economic growth. Public finance in Northern Ireland has needed significant reform for decades, and the financial difficulties predate the current crisis, but these continual crises are undermining public services and preventing Northern Ireland’s economy improving. The creation of a stable Budget is essential for Northern Ireland’s progress. The divided nature of Northern Ireland society exacerbates the economic problems that it faces. Major distortions remain within the provision of public services within the context of a divided society. This is not just a legacy issue; this pattern of duplication in service delivery continues to be replicated. Tackling the cost of division is by far the most significant long-term financial challenge facing Northern Ireland, but this is not being addressed in the current political vacuum.

Does the Minister recognise that, as well as the direct costs of policing civil disturbances and repairing damaged buildings and facilities, there are also indirect costs of providing duplicate goods, facilities and services for separate sections of the community, either implicitly or explicitly? These costs are borne not just by the public sector but by the private sector. Does he realise that divisions within society and a lack of political stability mean opportunity costs too, particularly related to lost inward investment into Northern Ireland and tourism? The Secretary of State recognised that in his speech in Brussels on 6 November, when he said:

“In Northern Ireland today over 90 per cent of public housing is segregated along sectarian lines. Over 90 per cent of children in Northern Ireland are educated separately … Indeed some independent estimates put the cost of division in Northern Ireland at around £1.5 billion. So bringing people together … and building a stronger, more shared society has to be an urgent priority”.


Does the Minister support efforts by the Alliance Party of Northern Ireland to require all departments to actively encourage de-segregation and to promote cohesion, sharing and integration within their policies and spending plans?

The Budget before us today is essential to ensure the full provision of resources for public services and to provide the legal authority to spend. But passing a Budget does not address the governance gap in Northern Ireland. Therefore, these scarce resources cannot be spent efficiently and effectively, and key reforms cannot be progressed. Even at this late stage, as the noble Lord, Lord Murphy, has set out so clearly, there may be alternative ways to save devolution and to provide for shared and sustainable government in Northern Ireland. There are proposed interventions: for example, bringing in an external mediator; a different format for the talks; and reform to structures and mechanisms that can better incentivise progress.

I urge the Minister to consider all the options to restore devolution so that we do not throw away the hard-won gains of recent decades. It must be possible to find creative solutions to the current impasse, and we urge all those involved to redouble their efforts.