Northern Ireland (Ministerial Appointments and Regional Rates) Bill

Debate between Jim Shannon and Sammy Wilson
Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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I did not expect to get called at this point, Madam Deputy Speaker; I usually get called at the end of debates. The good book says that

“the last shall be first, and the first last”,

but today I am somewhere in the middle. It is always a pleasure to speak in this House.

I congratulate the Secretary of State and the Government on presenting the interim measures in the Bill. This is not where we want to be, but we are committed to the Northern Ireland Assembly and the democratic process. The Bill gives us all an opportunity to make a contribution. A number of valuable speeches have been made, some of which raised questions in my mind, which I will speak about later.

Until recently, we had a functioning Executive that was more than fit to handle the issue of rates and to make Northern Ireland’s economy prosperous. In the short time that I have, I want to talk about the positive things that the Northern Ireland Assembly has achieved. The statistics are quite incredible. Unemployment numbers in Northern Ireland dropped to 39,320 in 2016. In my constituency, the percentage of people who claim for unemployment dropped from 5.3% to approximately 3.5%. The Democratic Unionist party has achieved that by being in government in Northern Ireland, making things work and getting the business done. That is what we do—we get the business done.

We have supported the creation of more than 40,000 new jobs, smashing the target of 25,000. We have instigated £2.9 billion of investment, which is almost three times the target of £1 billion. Such positive things are made possible by a good Assembly in which all parties are committed to working together, without one party stopping the whole process. We have had £585 million of research and development investment—almost double the target of £300 million—and 72% of new jobs supported by the “Rebuilding our Economy” programme have paid above the Northern Ireland public sector median salary. That gives some indication of what can happen when the Northern Ireland Assembly works. It has delivered at the highest level, and the figures have been way beyond many people’s expectations.

We took control of air passenger duty on long-haul flights leaving Northern Ireland and reduced the charge to zero. That power was taken off us by Europe, but we will now divest ourselves of Europe and wipe the dust off our coats in that regard. If we have a working Assembly, we will have a chance to reinstate that measure and put ourselves back in the market for long-haul flights.

Northern Ireland received more than 1 million more visitors than previously over the past three years. We have achieved year-on-year growth in tourism spending, which reached £752 million in 2014 and has increased in each successive year. The number of cruise ships docking in Northern Ireland has increased year on year. Some 80 vessels and an estimated 145,000 guests came to Northern Ireland in 2016, and the figures for this year show that there has been even more growth in the sector. That is what happens when we have a working Assembly to which all parties are committed, but one party—Sinn Féin—is not, and that has to be addressed.

On business taxes, the DUP has continued the policy of industrial de-rating, which has saved local businesses tens of millions of pounds, protecting jobs and encouraging investment. We have protected the small business rates relief scheme, which has benefited many small businesses across Northern Ireland by approximately £18 million per year. Small and medium-sized businesses across Northern Ireland have benefited directly from that action by the DUP. We delivered a Northern Ireland-wide rating revaluation that reduced rates bills for many businesses. Since 2012, 525 new businesses have benefited from the introduction of empty premises rate relief. When the Assembly was operational, it brought success to the people of Northern Ireland. The DUP remains committed to that, and we are looking forward to other parties making their contribution.

For years, business organisations have campaigned for the devolution of corporation tax and for the setting of a lower rate. Those powers have been described as potential game-changers for our economy. Other parties had second thoughts and were not sure what to do, so they gave up on it, but the DUP persisted and secured them. A date has been set in 2018 for the rate to be lowered to 12.5%, but there is now a question mark over that, because Sinn Féin’s intransigence has made the Assembly unworkable. If the Assembly was back up and running, we could deliver on that, and thereby deliver more jobs and a stronger economy across Northern Ireland. The cut in corporation tax will build on the strength of our workforce and the comparative cost base that makes Northern Ireland an attractive investment opportunity.

When the Executive was up and running, it delivered, and it should continue to do so. This does not read like a non-functioning, defunct Executive; it reads like an Executive in which one party was working hard to deliver for the people of the Province, but which was unfortunately brought down by another party that aspired to be in control to push a political point. Members have spoken eloquently today about the political aspirations that Sinn Féin has pushed hard to achieve. The Assembly was brought down by a party that does not send representatives to this House to fight for Northern Ireland—Sinn Féin representatives never sit on these green Benches and never take part in the decisions made for the people of Northern Ireland who elected them—but that will ask people to vote for it in a Westminster election, even though it will return nobody here to work for them. That is hard to believe. Sinn Féin Members refuse to take their seats in this place to fix what they have broken.

Members of my party and I will stand in the forthcoming election as people who work hard on the ground for our constituents. We work hard in this place, as the statistics show, for our constituencies, people and country. We are left in a position in which the Secretary of State has to step in. I am thankful for his willingness to do so, but that is not what we want or what the people of Northern Ireland deserve, and it must change.

Just a few weeks ago, the hon. Members for South Down (Ms Ritchie) and for Fermanagh and South Tyrone (Tom Elliott)—he has just left the Chamber—and I had a very constructive meeting with the chief executive of the Education Authority, at which we pressed for funds for outdoor centres. The chief executive indicated that even before the setting of the budget, the EA was £73 million short this year on its education spend. If it is short to that extent when the Assembly is not functioning, what will happen if the situation continues?

Sammy Wilson Portrait Sammy Wilson
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Does my hon. Friend recognise that even if the Secretary of State took powers to handle all the budgetary issues, the pattern of spending would be as established in previous years of the Assembly—no new initiatives could be implemented, because the power would be simply to disburse the funds on the basis on which they had previously been distributed—even though the priorities might now be different? Taking over budgetary powers will not resolve the issues that my hon. Friend is talking about.

Jim Shannon Portrait Jim Shannon
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My hon. Friend is absolutely right. Taking those powers will not address the issues, and we cannot address the issues because we do not have a working Assembly—if we did, we could at least make some decisions. We need the Finance Minister to bring forward a budget, as others have indicated, and we need all parties to be committed to the Executive. It is very frustrating to be in this position.

My hon. Friend the Member for North Antrim (Ian Paisley) referred to the case that the shadow Secretary of State raised. I look on the shadow Secretary of State as a friend—I wish him well in his retirement—so I was disappointed by the fact that he did not give any examples of similar cases from among the Unionist community. He could have mentioned Bloody Friday, when the IRA bombed people and blew them to bits. He could have mentioned Darkley, where the Irish National Liberation Army attacked and murdered people who were worshipping their God. He could have mentioned La Mon, where the IRA murdered innocent people who were on a night out. He could have mentioned the Abercorn restaurant, where people were murdered while they were having a meal. The Unionist community wants to know where the inquiries are.

Sammy Wilson Portrait Sammy Wilson
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Does my hon. Friend accept that we see this pattern from the Labour party, especially under Jeremy Corbyn—

Ballydugan Four

Debate between Jim Shannon and Sammy Wilson
Wednesday 19th April 2017

(7 years, 7 months ago)

Commons Chamber
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Jim Shannon Portrait Jim Shannon
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I agree with my hon. Friend. That rankles with us all. I remember it very well, and I think those matters must be addressed.

We call on not simply the British Government and the Minister, whom we look to because he is very sympathetic and understanding about this issue, but the British people, to help us set the record straight and stem the current tide of political machinations that seek to turn history around with collusion and skulduggery, and seek to distract attention from the facts. Those facts are as I have described: a 16-man and woman team planting a bomb that was intended to wreak as much death and destruction as possible, the death of four men in their 20s, and the injury of four other UDR men and two civilians who happened to be passing by in a car.

That was not those people’s goal, however. They wanted more. They wanted more blood, more agony and more heartache, and they carried out more atrocities until they were halted. That happened when Colum Marks—mass murderer and multiple monster that he was—was dispatched in Downpatrick after his attempt to kill even more police officers. This was not a holy war; this was cowardice. This was not freedom-fighting; this was a wretched hatred at work. This was not a noble cause, this was ignoble, unprincipled butchery.

As time moves on, we reiterate our call from the DUP Benches and from across the Chamber for justice for these four UDR men. It is very frustrating to hear the calls for justice for everyone else; I and my party, and the Members in the Chamber today, want justice to ensure that those brave UDR men, and those who wore the uniform whether in the police or the Army, get justice as well.

Sammy Wilson Portrait Sammy Wilson (East Antrim) (DUP)
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Does my hon. Friend agree that justice will never be done if Sinn Féin and the IRA are allowed, through the legacy process, to rewrite history and present themselves as freedom fighters who had some just cause, rather than as terrorists who were simply out to subvert the wishes of the people of Northern Ireland to remain part of the United Kingdom?

Jim Shannon Portrait Jim Shannon
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I absolutely agree with my hon. Friend. People try to equate the two, but let us be clear: those in uniform were serving their Queen and country to maintain law and order; those who wore balaclavas and skulked around at night and pushed buttons on bombs and blew people to death are the murderers and the terrorists, and they have to be accountable for everything they have done. There can be no comparison or equation.

We seek justice for everyone, and that justice will not simply be found in the incarceration of every person involved in the bombing, from the bomb makers to the clothes washers—all 16 of them, every one of them who did a task in relation to this. Justice must also come through an end to historical fiction being accepted as fact.

UK Decarbonisation and Carbon Capture and Storage

Debate between Jim Shannon and Sammy Wilson
Tuesday 24th January 2017

(7 years, 10 months ago)

Westminster Hall
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

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Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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It is a pleasure to speak in the debate. I congratulate the hon. Member for Coatbridge, Chryston and Bellshill (Philip Boswell) on raising the issue. I may have a slightly different opinion from my dear friend and colleague, my hon. Friend the Member for East Antrim (Sammy Wilson).

Sammy Wilson Portrait Sammy Wilson
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Maybe I should not have given my hon. Friend the time.

Jim Shannon Portrait Jim Shannon
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My hon. Friend may regret it, but it will not diminish our friendship in any way whatever. It is good to have a broad church of opinion within our party.

I will pose some questions because it is important to do so. Environmental issues are of great importance, so it is essential that our strategy is effective. I say to the Minister that I am not sure that we have managed to achieve all we could or should thus far. That is the question many have posed, including the hon. Member for Coatbridge, Chryston and Bellshill during his introduction.

It is opportune that we are having the debate on the back of the industrial strategy Green Paper announced by the Department for Business, Energy and Industrial Strategy yesterday. Many believe that the Department has not achieved value for money for its £100 million spend on the second competition for Government financial support for carbon capture and storage. Other hon. Members have said that there must be an investment to get a return, and that the return will justify the investment.

It is my understanding that CCS is a process to avoid the release of carbon dioxide into the atmosphere, and that it has the potential to help to meet the UK’s target for a reduction of CO2 emissions in both the power and industrial sectors, which is commendable. We have pledged to cut 1991-level emissions by 57% by 2030. While that is a great goal, how will we achieve it? Hon. Members have outlined potential job creation and the opportunities that will come if it is done in the right way. To achieve the goal is most certainly a challenge, given the untried nature of the technology.

Jim Shannon Portrait Jim Shannon
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I will respond to the hon. Gentleman’s intervention during my comments. The future costs for the duration of the CCS project are unknown, and perhaps the figures do not add up on all of the lines.

Two projects that were shortlisted for the CCS process both failed to meet the proposal goals. The work done centrally by the Department in sustaining negotiations for the second competition for the project with its preferred bidders must be noted—a process is in place. The hon. Member for Coatbridge, Chryston and Bellshill has clearly outlined some of the evidence, and I will pose some questions on that. I can clearly say that I support the principle of what we are trying to achieve, but I wonder whether it can be achieved by that process. There are lessons to be learned, and hopefully valuable commercial knowledge and technical understanding of how to deploy the competition projects will have been gained, as he said. If we have that information, let us see how we can use it to further the project.

There are currently no examples of large-scale CCS projects in the UK, and only 16 operational projects worldwide. BEIS should maximize its expertise for future CCS strategies and put into practice the lessons it has learned—in other words, the evidence should be used for the betterment of delivering such projects. If and when CCS projects are self-sustaining and economically viable, we will see clean electricity from renewable sources, which we wish to see and are committed to trying to achieve. However, the sticking point is in the phrase “if and when”, meaning we could achieve those things “if and when” the Government and BEIS find a happy medium and the in-between. Hon. Members are often tasked with finding a balanced in-between or the correct way forward.

The substantial future benefit of the CCS process is to avoid the release of CO2, as several hon. Members have indicated. However, it is clear that there are serious problems and critical issues with such projects that we cannot ignore. As I have discussed, there are no large-scale examples of long-term storage projects in the UK, despite a series of UK Government and EU initiatives aimed at incentivising their development. It has been argued that CCS technology is too expensive to be commercially viable for private developers without Government support in the shape of a strike price. Government involvement is critical in taking this forward.

I am aware of the work carried out by the parliamentary advisory group on carbon capture and storage, which found that good design could make CCS affordable. However, I have reservations about the cost of CCS competitions to the taxpayer.

Sammy Wilson Portrait Sammy Wilson
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Does my hon. Friend agree that a high strike price will be paid for out of the pockets of every one of his constituents who consumes electricity? That is the big problem with schemes of this nature, for which there is a move away from cheap fossil fuels to dear renewable sources.

Jim Shannon Portrait Jim Shannon
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The Minister will take note of my hon. Friend’s comments and am sure will respond later.

We have seen not one but two failed voyages into the unknown of CCS projects, for which we have spent £168 million with no further resolutions and only lessons learned. We do not want this to be like the Mary Celeste— setting sail, getting nowhere and disappearing. It is my understanding that the cancelling of the second competition will impact on investors’ confidence, who in future may demand better conditions before engaging with the Government again, which will prove detrimental to the cost-effectiveness of future projects.

We do not want this to harm the future and where we are going. I feel strongly that both the Government and BEIS need success guaranteed in both financial and environmental areas before embarking on such voyages in the future, and as such I believe that every consideration must be given to how this particular project will help us to achieve our goals, and indeed whether it can do so.

Tax Credits

Debate between Jim Shannon and Sammy Wilson
Tuesday 20th October 2015

(9 years, 1 month ago)

Commons Chamber
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Sammy Wilson Portrait Sammy Wilson (East Antrim) (DUP)
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First, let me say that I do not think many people disagree with the analysis that has been made about tax credits. The question is: will the Government’s approach and the timing of their reduction solve the problem and avoid the difficulties that have been identified?

Let me deal with the three arguments put forward by the hon. Member for Spelthorne (Kwasi Kwarteng), the first of which was that Government credibility is at stake. In a democracy, it is not just the credibility of the Government that is important, but the fairness of the policies they are undertaking. They might argue that they are dealing with the deficit and taking tough action, and that those are good things, but those affected must also feel that they are being treated fairly. I do not believe there is fairness in this policy, because it does affect those people at the lower wage end of the economy. As has been said, we are talking about the strivers in society—the people who want to make a contribution and yet find themselves undermined.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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My hon. Friend has mentioned the issue of those who are going to be hit hardest. Some 300,000 more children will be put into poverty, as has been confirmed by the children’s charities. Does he share their concerns?

Sammy Wilson Portrait Sammy Wilson
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My hon. Friend makes an important point. In Northern Ireland, 33,000 of those who will be affected have two or more children, and the impact is likely to be about £2,500 per year on them. The issue of fairness is therefore important.

The second point that the hon. Member for Spelthorne made was that this was the right time. The right hon. and learned Member for Rushcliffe (Mr Clarke) argued that the economy is buoyant, but that is not true in all sectors, or in all regions. There are many places where the labour market will not push up wages and where there is not the competition for employers to say, “We will have to hold on to workers by pushing up their wages to the national living wage or beyond.” It is not the right time in many parts or in many sectors of the economy. As the Office for Budget Responsibility has said—as has the Adam Smith Institute, which is hardly a hotbed of left-wing subversives who want to wreck the Government’s policy—the policy will price thousands of workers out of the labour market.

Finally, the safety nets that exist are not there for everybody. For example, the national living wage will not apply to a large group of people in society—to those who are under the age of 25. The new approach to housing benefit will not help those who are in the private rented sector, so they will face housing costs. The childcare costs will not apply right across the board. We will find similar things if we go through many of the other safety nets that the Government say they have put in place. For all the reasons that I have mentioned, this is an unfair change in policy.

Some Members have asked, “What is the alternative?” May I just say that I served as Finance Minister in Northern Ireland, and we had to find 5% cuts in the middle of a financial year, and then 3% cuts every year for four years? There is enough room in a budget of £400 billion to find the changes that are required to fund the phasing in of these kinds of changes. We do not have time to discuss that today, but suggestions have already been made. If this is a policy that the Government want to pursue, the real challenge is to find ways of introducing it humanely, fairly and effectively.

Budget Resolutions and Economic Situation

Debate between Jim Shannon and Sammy Wilson
Tuesday 14th July 2015

(9 years, 4 months ago)

Commons Chamber
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Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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It is a pleasure to speak in this vital debate. I commend the three Members who have given their maiden speeches. The hon. Member for Kensington (Victoria Borwick) spoke of her constituency and how we can deal with what life gives us. I commend her for that. The hon. Member for Brecon and Radnorshire (Chris Davies) did not walk too far in the House, but he walked the length and breadth of his constituency, and we appreciate that. The hon. Member for Paisley and Renfrewshire South (Mhairi Black) has just left the Chamber. I am unashamedly a Unionist and I do not agree with the ultimate goal of the Scottish National party, but I tell the House this: I agree very much with many of the issues that she raised, as my speech will reflect. I commend her for her contribution. While she speaks for her constituents, I know that I speak for mine.

There are several issues that I feel must be addressed, as I have already been inundated with phone calls from constituents concerned in particular by the announcement on tax credits. That is a massive issue for me; the mailbag has been enormous. Those who have phoned or written have been worried. There are some pleasing announcements in the Budget—I recognise that—including on defence spending. I am on the Select Committee on Defence and I am pleased that we will be spending 2% of GDP, but is that enough? The Chairman of the Defence Committee has said we should have 3%, and I agree with him.

Sammy Wilson Portrait Sammy Wilson (East Antrim) (DUP)
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Does my hon. Friend accept that the 2% on defence spending has been reached only as a result of including expenditure on internal security—it is not pure defence spending—which is a disappointment and, indeed, a manipulation of the figures?

Jim Shannon Portrait Jim Shannon
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I thank my hon. Friend for his contribution. We made the decision in the Defence Committee just today that we will look at this issue. We will thoroughly investigate whether the 2% figure amounts to real money. As I said earlier, the Chairman of the Defence Committee wants 3%, and I want it too.

Another of my concerns is about the national living wage. I also fear for the huge number of small and medium-sized enterprises across the Province and particularly in my Strangford constituency. I have grown increasingly concerned about the large number of people using food banks, to which other hon. Members have referred. Some people in secure employment simply do not earn enough to live, so it obviously goes without saying that wages have to increase. We must help to safeguard the most vulnerable in our society.

The Federation of Small Businesses Northern Ireland claimed that 99.9%—its figures—of employment in the Province comes from small and medium-sized businesses, so naturally this change in wages poses a huge threat to some employers. I am concerned about that. What is the Chancellor going to do about the minimum wage? We welcome it, but what is he going to do to help small and medium-sized businesses to remain profitable and successful. Will some businesses be forced to employ people in the lower-age bracket, and will it demean and detract from what is being put forward?

As for child tax credits, it seems that we are given something on the one hand, but a great deal is taken away on the other hand. It is great to hear that tax-free personal allowances will increase next year. I hope that it will put a little bit of extra money into our constituents’ pockets, but whether it will really help the poorest in our society is debatable.

I find it rather distressing that the Government are virtually saying that by 2017 they will support people if they have two children or fewer, but if they happen to have more than two children, they are on their own. One cannot help but draw comparisons between the United Kingdom of Great Britain and Northern Ireland and the Democratic Republic of China. I am reminded of a quote from the American poet, Maya Angelou, who said:

“I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.”

Clearly, this Government are in danger of adversely affecting the people they are supposed to be standing up for. This change in tax credits and benefits will greatly affect many of my constituents.

The anti-child poverty charity, Barnardo’s in Northern Ireland, has claimed that 160,000 families across the Province could be left struggling if plans to cut tax credits go ahead. Barnardo’s also warned, as it launched a campaign, that the Westminster Government should keep the “lifeline” benefit. Lifeline benefit is rightly named, because that is exactly what it is. With low wages and high living costs stretching budgets across Northern Ireland, tax credits are an everyday lifeline for families. It would be remiss of me not to remind the Government of the impact on families of the reduction or removal of child tax credits and working tax credits. Let me assure the Chancellor and the Minister that people feel extremely aggrieved. Large families feel totally alienated, and people feel they are being punished for having more than two children.

In the last Parliament, the Democratic Unionist party worked alongside the Conservative Government to deliver the marriage allowance. What a breakthrough that was: we encouraged marriage, we encouraged the family. Yet now, one year later, it seems that the Government intend to punish those with more than two children. I find that quite incredible. Last year, the family was the cornerstone of our society, and we agreed that family brought communities closer together; now it seems that the Government have done a U-turn. The Government cannot claim to support the family unit, and then attach terms and conditions to it. We cannot say that we support families so long as they do not go over the two-child criterion—this is simply ludicrous. I have already had many calls from concerned parents, from families and from many of my constituents who are struggling. This reduction in child tax credits is going to make it even more impossible for them just to get by. Unfortunately, this is evidence that the Budget was certainly not designed to help working people in our society.

Another issue that concerns me—this, too, was raised by the hon. Member for Paisley and Renfrewshire South—is the change in housing benefit for those aged between 18 and 21, which will force young adults to live at home with their parents until they are 21. They will have to either “earn or learn”. In principle, that seems a good idea, given that a significant number of 18 to 21-year-olds are either working or still in education, but the fact is that a great many of them are not. All that this measure will do is increase the pressure on social workers, and that concerns me greatly.

The Budget has made some welcome changes, but a great many others will cause the worst off in society to struggle even more. It has been estimated that, in the years leading up to 2019, a 10th of the population in the United Kingdom will lose about £800 a year as a result of the tax and benefit changes. That is equivalent to nearly 7% of their net income. As I have said, I fear that the pluses in the Budget do not outweigh the disadvantages, especially for the most vulnerable and the worst off in society.

It is good to see the economy recovering and growing, but those at the bottom are struggling to see that that is happening. I fear that if the Chancellor and the Government press ahead with their £9 billion saving, reducing tax credits, housing benefit and other benefits and pushing 160,000 more families in Northern Ireland—including families in my constituency—towards child poverty, they will undo all the economic good that has been done. They may well lose sight of it altogether as, once again, the purse strings tighten around those who can least afford to absorb the changes.

Those are my concerns about the Budget, and they reflect the concerns of my constituents. I shall vote against the Budget this evening.

Devolution and Growth across Britain

Debate between Jim Shannon and Sammy Wilson
Wednesday 3rd June 2015

(9 years, 5 months ago)

Commons Chamber
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Sammy Wilson Portrait Sammy Wilson (East Antrim) (DUP)
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I welcome this commitment in the Queen’s Speech:

“To bring different parts of our country together, my Government will…bring about a balanced economic recovery.”

That is, first of all, essential economically, because, if we are to avoid certain parts of the economy overheating while resources lie idle in others, we will need to take that balanced approach. Secondly, as a Unionist, I believe it is essential politically, because nationalist parties in Northern Ireland, Scotland and Wales are good at exploiting economic grievances—or perceived economic grievances. Therefore, it is very important that together we have an economy that is growing.

Unfortunately, the Government’s record over the previous five years has not been one of promoting a balanced economy. Yes, there have been successes—we have seen economic growth and an upturn in the economy—but it has not been universal across the United Kingdom. There are still parts where unemployment is high, where there is huge dependency on welfare and where there is still very little economic growth. It will be interesting, therefore, to see how that promise is put into practice.

Devolution is one of the ways it can be done. In Northern Ireland we have been working at coalition government with five parties—which makes the coalition Government here in Westminster look like a love-in, because we have been dealing with people who are, quite frankly, almost impossible to work with. Despite that, with the powers we have had we have kept unemployment in Northern Ireland at this stage of the economic cycle at a level that would not have been experienced in the past. We have promoted the best inward investment of any region in the United Kingdom, and we have built more social and affordable housing, despite the cuts in capital budgets, by using resources and selling assets.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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All that is threatened by the abstentionist policy of Sinn Féin, who do not take their seats here, and by the SDLP, who do. They object to the welfare reform proposals that have been introduced. Does our economic course in Northern Ireland depend on the settlement of that process in Northern Ireland?

Sammy Wilson Portrait Sammy Wilson
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It is jeopardised by some actions of the coalition partners, and I want to get a commitment from the Government on that issue.

In my experience over the past five years, when a case has been made for additional powers for devolved government, the Government have responded. We have seen the limited devolution of air passenger duty to the Northern Ireland Executive; the promised devolution of corporation tax, which my hon. Friend says is now being put in jeopardy; the exemption from the carbon price floor because of the structure of our energy market; flexibility over budget spending; and carry-forward powers. All those things have been good, positive ways in which the Government have responded in the past. I look forward to working with them, given the commitment shown in the Queen’s Speech.

During the election, we presented our Northern Ireland economic plan. It includes a range of measures, some of which require additional spending, changes in legislation and co-operation between central Government and the devolved Government, but they are all designed to help Northern Ireland reduce its dependency on the public sector, grow the local economy and increase the private sector. I look forward to working with the Government in implementing those plans and testing their commitment to using devolution to promote uniform growth across the United Kingdom.

Although some central Government policies might make sense in the wider UK context, they have a disproportionate impact on parts of the economy that, because of our structural differences, the historical difficulties we have experienced and our geographical disadvantage, are not robust or that are different and therefore require different treatment.

I am interested in the promise in the Gracious Speech to introduce legislation to give effect to the Stormont House agreement in Northern Ireland. It is a very important agreement because it is about not just implementing welfare reform, but devolving corporation tax and giving the Northern Ireland Executive the power to borrow in order to effect structural changes in the public sector. It is also about getting additional funding for infrastructure developments and the ability to pay off previous loans by having flexibility in our spending arrangements.

A lot is at stake with the Stormont House agreement, and yet it has been put in jeopardy by the refusal of the Social Democratic and Labour party and Sinn Féin to implement one important aspect of it, namely welfare reform. Despite the fact that, in an Assembly vote, the vast majority of Members voted to put through the agreement and welfare reform part of it, because of our constitutional arrangements in Northern Ireland and the requirement for a cross-community vote, it has been blocked. As a result, not only have many of the important things that would have been available to the devolved Government been stopped, but we have a hole in this year’s budget of more than £600 million—or 6% of the budget—which is fiscally impossible to repair at this time.

If the situation persists, there is one power that the Government must bring back to this House. It will disadvantage the people of Northern Ireland because the concessions will be lost, but we cannot afford for welfare reform to be a blockage to all the other changes. Although we are talking about devolving more powers, if parties persistently refuse to implement the welfare reform package—which I suspect most Members of this House would be jealous of because of the concessions Northern Ireland has been given—I appeal to the Government to take that power back.