Canary Wharf Bombing: Compensation

Lord Dodds of Duncairn Excerpts

Tuesday 23rd February 2016 Westminster Hall

[Jim Fitzpatrick (Poplar and Limehouse) (Lab)]

I beg to move,

That this House has considered compensation for victims of the Canary Wharf bombing.

It is a pleasure to see you presiding over the debate, Ms Dorries. It is also very good to see the Minister, for whom I have the highest regard, in his place. I know that the Treasury, the Foreign Office and the Ministry of Justice have been passing or sharing responsibility for this issue among them. I am grateful that a Treasury Minister is here, because I think that this is a financial question. Some issues of compensation are an MOJ responsibility and some issues are a Foreign Office responsibility, but a number of the key questions that I want to ask relate to British financial policy, as I hope to make clear. I am grateful that the Treasury is represented here today to respond to the debate. To be honest, I do not really care which Department takes responsibility and responds. What the victims and I want to see is action.

Two weeks and 20 years ago today, the Canary Wharf bomb detonated. The bombing marked the end of a 17-month IRA ceasefire. It was recently the subject of an excellent BBC Four documentary, broadcast to commemorate the event, entitled “Executing the Peace”. The half-tonne bomb was left in a small lorry about 80 yards from South Quay station on the docklands light railway. It exploded at 19:02 GMT 90 minutes after coded warnings were telephoned to Dublin and Belfast media. Inam Bashir and John Jeffries died when the bomb went off outside their shop on 9 February 1996. Many more people were injured, a number seriously.

I have been trying for a number of years to assist the Docklands Victims Association to secure compensation for the victims who suffered, and are still suffering in many cases, and for the families of those who were killed. The Docklands Victims Association is not alone in seeking justice; many other victims are also trying to do so.

The starting point for all this seems easy enough. Semtex explosive was sold by the Czechs to the Libyan regime of Colonel Gaddafi. It then supplied that Semtex to various terrorist organisations, including the IRA. That Semtex killed and maimed people. But from there things get much less clear. To its credit, the Select Committee on Northern Ireland Affairs—I am pleased to see its Chair, the hon. Member for Tewkesbury (Mr Robertson), in his place—is engaged in an inquiry trying to get to the bottom of this. I cannot do justice, in my brief remarks, to the evidence that it has already heard or the conclusions and recommendations that it will deliver, but its report, I suspect, will not be kind to successive British Governments over the last almost 20 years. I simply wish to ask the Minister why UK citizens have not been compensated, unlike citizens in the United States, Germany and France who were also victims of Semtex supplied by Gaddafi.

One of the most powerful statements that I heard in the Northern Ireland Affairs Committee sessions was from Mr Jason McCue, representing victims in Northern Ireland. He said:

“Victims…are front-line troops in the war on terror...We have a duty of care to them, and yet we do not seem to value them in our society, like others do—like the French or the Americans do. We do not give them that value; we do not give them that respect. We do not see the humanity in them, and their strength in the war on terror. There is no stronger counter-terrorism measure than a victim standing up”.

The question for me and many colleagues—a number are in the Chamber today—is not whether the victims should be compensated but how. There are several possible ways, and all have been mentioned in the Northern Ireland Affairs Committee hearings, in which members are examining those ways and have suggested a number of parliamentary questions to tease out even more information on this very difficult issue.

[Mr Nigel Dodds (Belfast North) (DUP)]

I congratulate the hon. Gentleman on raising this very important issue again on behalf of his constituents. The Docklands Victims Association is doing tremendous work and working with victims elsewhere whose victimhood came about as a result of Semtex supplied by Gaddafi. I am sure that the hon. Gentleman will accept that Members from Northern Ireland fully support the campaign for compensation in this case, because it will mean compensation right across the board for many other victims as well. We fully support the case and wish him well.

[Jim Fitzpatrick]

I am grateful to the right hon. Gentleman for that expression of support. He, too, has campaigned strongly on this issue for many years. This is a more general case; it is not exclusively about the Docklands Victims Association. Obviously, those victims are in my constituency, but many others across the country are also involved, and what we want to see is justice for them all.

I was exploring the possible ways forward. The first way forward would have been for the British Government to join a class action with the US Government in their claim for compensation. I would like to quote Mr McCue again. He said in response to a question from the hon. Member for Ribble Valley (Mr Evans):

“There was no reason why the British Government could not have, first of all, petitioned for the British citizens to be in it. There is nothing in American law preventing them from espousing a claim, which is the technical term for it, with another state to bring compensation for a class action. The Americans could have done it.”

A Mr Jury, another witness at the Northern Ireland hearings who was also representing victims, said:

“Can I add to that that the Libya Claims Settlement Agreement is a court-accepted statement of liability towards the UK victims? Under US law, there has been an acceptance of liability, and under judicial international comity, the UK courts would accept that anyway.”

Therefore there is, or at least was, the possibility of an international legal route to compensation, but my main question to the Government is why is there not, or why can there not be, a UK domestic route?

There have been reports that the UK Government have frozen Gaddafi or Libyan assets in UK banks. I suspect that the Treasury was behind that, which is why I have targeted the question in this debate at Treasury Ministers. The amount of funds is not clear. Some commentators suggest £900 million; others suggest that it runs into billions of pounds. That raises a number of questions for the Minister, of which I gave his office notice last evening. I must congratulate the Minister’s private office, because it was still emailing me at half-past 8 last night to try to get to the bottom of some of this.

First, do such frozen accounts exist and, secondly, what are they worth if they do exist? More importantly, there are international legal precedents that enable frozen assets of a terrorist or dictator—in this case, Gaddafi—to be used to pay compensation to victims, so my third and most important question, to which I will return at the end of my remarks, is why do the UK Government not go down that route?

A third route is now apparently being explored. An article in The Daily Telegraph on 16 January quoted the Under-Secretary of State for Foreign and Commonwealth Affairs, the hon. Member for Bournemouth East (Mr Ellwood), who, to his credit, attended the memorial service in my constituency two weeks ago, on 9 February. He did not tell me that he was coming, but it was good to see him there anyway, and other parliamentary colleagues. The article stated:

“Tobias Ellwood, a Foreign Office minister, told The Telegraph that he had met new Prime Minister designate of Libya, Fayez el-Sarraj, and raised the case for compensation with him in person.”

The hon. Gentleman was quoted as saying:

“We will certainly make the case with the Libyan government in order to pursue this as best we can.

As soon as there is a government to work with I am planning to facilitate bringing the victims’ groups and the Libyan authorities together. It is for the Libyans themselves to say whether or not there would be a case for a request for compensation.”

There are, therefore, three possible ways to compensate victims: join a class action in the US, use interest from frozen assets in the UK or get the new Libyan Government to cough up.

Short Money

Lord Dodds of Duncairn Excerpts

Tuesday 23rd February 2016 Commons Chamber

[John Penrose]

May I start by reassuring my right hon. Friend that we are talking not about a cut, but about a slower rise? The cost of Short money has already risen by 50% since 2010, which is a significant amount. We are talking about reducing the rise, which, if nothing were done, would continue to ratchet up between now and the end of the Parliament. I would also say to him that the total salary bill for Spads is still lower than the total cost of Government funding for policy development grants, Short money and other areas of expenditure. Therefore, while I agree that the two things are not directly comparable, there is some symmetry. I hope he is reassured by the fact that the Spad salary bill is much lower overall than the bill for the total funding of Opposition parties.

[Mr Nigel Dodds (Belfast North) (DUP)]

Will the Minister clarify his thinking on policy development grants and how it ties in with the views of the Electoral Commission?

[John Penrose]

The House will be aware that the independent Electoral Commission has undertaken a fairly careful consultation over some time and has made some recommendations. The statutory instrument I mentioned in my initial remarks implements some of those, but not all as yet. We are holding off on deciding how we proceed with the remainder of the recommendations until we have the results of the expression of views. Given the obvious parallels between Short money and policy development grant, we thought it was sensible to make sure we had one set of answers before we proceeded with the other recommendations.

Short Money and Policy Development Grant

Lord Dodds of Duncairn Excerpts

Thursday 11th February 2016 Commons Chamber

[John Penrose]

I shall.

[Mr Nigel Dodds (Belfast North) (DUP)]

Can the Minister reassure me that all parties in the House will be fully involved in every stage of all the consultations? Will he also bear it in mind that a flat cut in both Short money and policy development grant will have a disproportionate effect on smaller parties, particularly regional parties? They are important elements in allowing us to function properly.

[John Penrose]

I can give the right hon. Gentleman exactly that reassurance. We will ensure that all political parties are involved in our consultation.

EU Referendum: Timing

Lord Dodds of Duncairn Excerpts

Tuesday 9th February 2016 Commons Chamber

[Mr Nigel Dodds (Belfast North) (DUP)]

I beg to move,

That this House notes and regrets that the Government appears set to rush to a referendum on the UK’s membership of the European Union in June 2016; believes that no case has been made for holding a referendum at such an early stage, and that further, any such needlessly premature date risks contaminating the result; believes that a subject as fundamental as EU membership should be decisively settled after a full and comprehensive debate; notes the recommendations of the Electoral Commission on best practice for referendums; further notes that there are elections happening in Northern Ireland, Scotland, Wales, London and some local authorities in May 2016 and that the First Ministers of each of the devolved administrations have all expressed opposition to a June referendum date; and urges the Government to set the date for the referendum having respect for the May elections as distinct electoral choices.

The referendum on EU membership is one of the biggest decisions that the people of this country will be asked to make in our lifetime. I, for one, am glad that we have been afforded the opportunity to have our say. The Democratic Unionist party campaigned long and hard, when the two major parties were against a referendum, for the people of the United Kingdom to have their say. I commend the Government very much for introducing legislation to allow the referendum to take place during this Parliament.

Today’s debate is about the timing of the referendum and the date on which the vote is held. Some Members who support our motion hold different views on EU membership and, indeed, on whether we should have a referendum at all. However, whatever side of the argument we are ultimately on, we agree that, when the referendum is finally held, there must be the fullest, most comprehensive debate possible, which does not overlap with, or otherwise become enmeshed in, the election campaigns in May for the Scottish Parliament, the Northern Ireland and Welsh Assemblies, and indeed for that matter, for the London Mayor, and other local elections.

[Mr Mark Williams (Ceredigion) (LD)]

I am grateful to the right hon. Gentleman for taking an early intervention. Does he take comfort from the fact that the view that he has just expressed has been endorsed by all the party leaders in the National Assembly for Wales—not just the First Minister but the Liberal Democrat leader, the Plaid Cymru leader, the Labour leader and, critically, the Conservative leader?

[Mr Dodds]

The hon. Gentleman makes an extremely important point, which I shall come to, about the cross-party nature of the sentiments behind the motion. It is not motivated by one side or the other on the EU referendum debate, or by a party political consideration, and it has the support of a diverse range of parties on both sides of the argument. The issue needs to be taken very seriously by the Government, and cannot be dismissed lightly or set aside easily, given the breadth of support that it attracts from all parties, including the major parties mentioned by the hon. Gentleman: the Conservative and Labour parties in Wales, and the Labour First Minister in Wales. It would be interesting to know the position of the main parties in Scotland.

[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. .

[Philip Davies (Shipley) (Con)]

I commend the right hon. Gentleman and his party for the work that they have done to campaign for an EU referendum for many years, long before it was fashionable. Has he also taken into consideration the fact that there is a European Council meeting scheduled for 23 June—apparently, the Government’s favoured date for the EU referendum? Does he think it appropriate for a European Council meeting—and who knows what reports might come out from that meeting on the day—to be held on the same day as the EU referendum?

[Mr Dodds]

The hon. Gentleman, as always, makes an interesting point, which will no doubt have been listened to with great interest by his ministerial colleagues. It is a very valid point indeed.

[Mark Spencer (Sherwood) (Con)]

I wonder whether the right hon. Gentleman’s constituents will pay more attention to the European Council meeting on 23 June than the Northern Ireland fixture against Ukraine on 16 June. Perhaps his constituents have other things in their life, and Europe is not a constant feature in their psyche.

[Mr Gregory Campbell (East Londonderry) (DUP)]

It’s not an either/or.

[Mr Dodds]

As my hon. Friend says, it is not an either/or. People are capable of watching the football, listening to the political debate and doing other things. If this is to be an issue, it will be because the Government have chosen to foist the EU referendum on us at the time of the Euro championships, which people will want to concentrate on. That is another good argument for having the debate later. Another good reason is that many fans from England, Wales and Northern Ireland—sadly not Scotland—will be travelling to France. We could avoid the extra cost of postal votes, proxy votes and the rest of it, if we had the vote on a different date.

[Mark Spencer]

Given that the right hon. Gentleman accepts that the good people of Northern Ireland can focus on more than one thing at once—football and politics—surely they can focus on local elections and the EU referendum at the same time.

[Mr Dodds]

This is an issue not about the voters being confused—it is a bit patronising to talk in those terms—but about the Government’s deliberate choice to rush the referendum by holding it on that date. I will deal with that in more detail later.

[Alex Salmond (Gordon) (SNP)]

Does the right hon. Gentleman agree that this is not about the voters in Northern Ireland, who are quite capable of concentrating on the European championships—we envy them for being in it—and politics but about the devolved Administrations, who, unlike the one closer to here, respect purdah? If the referendum is on 23 June, the three Administrations will be in purdah for 10 out of 13 weeks. I do not know whether Conservative Members have considered that.

[Mr Dodds]

The right hon. Gentleman, from his considerable experience, makes a very salient point.

This debate is not about the substance of the EU referendum argument or the deal that the Prime Minister has negotiated, so I will pass over the details of that deal—it is surprisingly easy to do so. Instead, I want both sides of the House to consider whether the result of the referendum will be morally binding or politically conclusive and whether we will settle the debate for a generation. We can do that, of course, but, on the Government’s current timetable, I fear we will not. This is needless folly, not least for the Conservative party, but there is time, even now, for it to reconsider—that would be in its long-term interests—and I believe it should.

To be clear, there is no suggestion that the public cannot choose or that a compressed electoral cycle would, as some have suggested, be too complex for the voters. Of course the people can choose and understand the issues. This is not about their choice, and still less is it about their ability to choose; it is about the Prime Minister’s desire that they choose in a particular way at a particular time in the rushed referendum that I fear he is set upon.

Why hold the referendum on 23 June? No Minister has made the case for an early referendum—quite the reverse; they have extolled and observed the virtues of Electoral Commission guidance and past polls at all levels, be they general elections, local elections, devolved elections and, yes, both the national referendum in the last Parliament on the alternative vote and the recent Scottish referendum. The House and public are entitled to ask, therefore, why they are seemingly intent on kicking over their own precedents. Why is this poll to be so very different from all that have gone before? What explains the rush and the panic?

[Hywel Williams (Arfon) (PC)]

Given the congestion of events in May and June, what does the right hon. Gentleman make of the comparative coverage already in the media of the referendum and the elections in our own backyards?

[Mr Dodds]

The hon. Gentleman makes a good point. Despite the public’s ability to discern the different issues at stake in the different election questions, the media often fixate on one issue. They will undoubtedly concentrate heavily on the national question of the EU referendum while giving little coverage to the elections in the devolved regions. That is another good argument for why the two should not become enmeshed.

[Lucy Frazer (South East Cambridgeshire) (Con)]

Is the right hon. Gentleman aware that in Sweden in 1994 two months elapsed between a general election and a referendum on membership of the EU; in Denmark, two months elapsed between the general election and the referendum on the treaty of Amsterdam; in Malta, one month elapsed between two such elections; and in Switzerland, 15 referendums were held in 1992 alone? Is he suggesting that these countries have abdicated their responsibility to the general public?

[Mr Dodds]

No, not at all. That is a rather strange argument to make. In Northern Ireland and elsewhere, European elections have been held on the same day as local and Assembly elections. So that is neither here nor there. We have already made the point that people are quite capable of separating out the issues. We are talking about the impact on the functioning of the devolved Administrations and the ability of political parties to campaign and work with others, if necessary, on those issues; about the purdah issue the right hon. Member for Gordon (Alex Salmond) rightly raised; and about the media’s concentration on EU issues to the exclusion of devolved issues. This debate is about those important issues, not the question the hon. and learned Lady raised.

On 3 February, the First Ministers of Northern Ireland, Scotland and Wales, along with the Deputy First Minister of Northern Ireland, wrote jointly to the Prime Minister to set out the case against a June referendum and to argue for the debate to be free from other campaigning distractions. That needs to be taken seriously and treated with the respect it deserves. We hear a lot about the respect agenda and taking on board the views of the devolved Administrations, and that now needs to be put into practice. This is an important moment in this Parliament. Will the Government respect the devolved Administrations?

[Kevin Foster (Torbay) (Con)]

I was interested to hear the right hon. Gentleman talk about listening to the views of the Electoral Commission. Last Thursday, in questions to the hon. Member for South West Devon (Mr Streeter), who was representing the commission, I asked if it had given a view yet on dates in June. It had—it had only ruled out the 2nd and the 9th. Does the right hon. Gentleman think that says something?

[Mr Dodds]

I will come to the Electoral Commission shortly.

The leaders of the Administrations in Scotland, Wales and Northern Ireland have very different views and come from very diverse backgrounds. We have the leader of the Scottish National party, the leader of the Labour party in Wales, the Democratic Unionist party leader and the Sinn Féin leader in Northern Ireland. That is a diverse group of politicians with very different backgrounds—to say the least—but they have come together not out of party political interest but in the interests of the peoples they represent in their respective countries. Whether on the “remain” or the “leave” side, they have set aside party political considerations in the common interest that the referendum should not happen in June. My colleague, Arlene Foster, Northern Ireland’s First Minister, has rightly observed that any premature European referendum campaign would inevitably become intertwined with the Stormont elections. How could it not?

[Sir Edward Leigh (Gainsborough) (Con)]

I suspect that the right hon. Gentleman and I will both vote to leave. From a Eurosceptic English point of view—we are self-confident and we know our arguments—we say to the Prime Minister, “Bring it on—no delay, don’t look worried, bring it on!”. We can have a proper debate, and we can win this.

[Mr Dodds]

I respect the hon. Gentleman’s point of view. I understand where he, as an English Eurosceptic, is coming from. I hope he respects where we in Northern Ireland, Scotland and Wales on both sides of the argument are coming from. We will weigh the arguments and consider whether his view should be tempered by the contributions of colleagues from other parts of the UK, some of whom might share his views.

[Simon Hoare (North Dorset) (Con)]

A phrase in the motion stands out as pretty strong stuff, and I would welcome the right hon. Gentleman’s explanation of it. It claims that the

“needlessly premature date risks contaminating the result”.

I thought we had already established across the House that the electorate can both walk and chew gum. I am not entirely sure how the result could be “contaminated”.

[Mr Dodds]

It is pretty obvious on an issue that the Conservative party has debated for many decades and the country raised many concerns about, that when the deal is finalised—the “t”s are crossed, the “i”s dotted and all the rest of it—we surely deserve more than a short 18, 17 or 16-week campaign for detailed consideration. If the Conservative party and others are really interested in putting the issue to bed once and for all, I think they will want the fullest and most comprehensive debate possible.

[Mr Gregory Campbell]

Does my right hon. Friend agree that a consensus seems to be emerging that this serious issue needs to be examined, debated, made subject to dialogue and voted on? We need to have this discussion and debate unencumbered by regional influences, London Mayoral elections and other issues that will undoubtedly feature in the media, sidelining the issues relating to a European referendum, which should take place at a time later than June this year.

[Mr Dodds]

I quite agree with my hon. Friend, who sets out the position very clearly.

Only last month, the Prime Minister himself was pretty unambiguous about this matter. He said:

“I’m not in a hurry. I can hold my referendum any time up until the end of 2017”,

and that

“it is more important to get this right than to rush it.”

My fear is that he is rushing it and not getting it right.

[Mr David Hanson (Delyn) (Lab)]

As a Welsh Member of Parliament, I have some sympathy with the right hon. Gentleman’s argument on grounds of purdah and for other reasons, but will he help to clarify it by telling us on what date he thinks the referendum should be held? I am also concerned that the longer this is left, the more damaging it will be to the long-term economy of the United Kingdom.

--- Later in debate ---

[Mr Dodds]

The Government have set in legislation the end of 2017 as the backstop. I generally think that the longer the debate, the better, because it will give people the fullest and most comprehensive debate possible. Personally, I would be content to have the referendum in the autumn. We do not have to go to the end of 2017, but we should certainly go beyond June and not have it enmeshed with the other elections we have mentioned.

Many people are asking the question—it needs to be asked—of what the Prime Minister is afraid of in relation to the summer. What is it that he does not want to risk voters see happening over the course of the summer when they consider the issue of British membership of the EU? What mistakes does he anticipate our EU partners will make? What is he really worried about?

That brings me on to some of scare stories that are going around at the minute and, sadly, getting a lot of currency. Some are silly; some are implausible; some, of course, are simply knockabout stuff, without which politics would be infinitely duller and the papers would have less to write about. However, some are pernicious and should not be casually repeated.

In anticipation of our referendum deciding our membership of the EU on the grounds of what is or is not in our national interest, I entirely acknowledge the right of friendly foreign Governments to say how that might affect them. What I do not accept, and what I can hardly believe has happened from the mouths of serious figures who really should know better, is the sort of absurd nonsense that British exit from the EU could somehow in itself precipitate the rise of Irish republican terrorism again. It is hard to know what is worse about claims such as these—that they are criminally irresponsible, or logically fatuous. Brexit will neither cause republican terrorism, nor make any difference to it. Its cause, wrong and bad as it is, is Northern Ireland’s membership of the United Kingdom, democratically decided and settled—not the UK’s membership of the EU. Those who have claimed in recent weeks that terrorism would be encouraged or facilitated by a leave vote in the EU referendum are peddling scare stories of the very worst nature. I can only hope they are already ashamed of them, and will not repeat them again.

[Ian Paisley (North Antrim) (DUP)]

It is worth outlining that every single witness to the Northern Ireland Affairs Committee, which is looking into this issue, has underscored and reiterated what my right hon. Friend has just said—that there is no chance of terrorism being affected one way or the other by this debate.

[Mr Dodds]

My hon. Friend reinforces the point strongly. I look forward to reading the Select Committee’s report when it comes out. It will provide a very useful contribution to the debate in Northern Ireland and indeed more widely.

We have provided for a body to administer these things. The Electoral Commission is not wholly without fault or flaw, but it has been consistently clear on how this referendum should best be conducted. It has said that administrative necessity, the needs of the other elections in the first half of this year and fairness all combine to suggest that the referendum should not, in my view, be on 23 June. Of course, the Electoral Commission is not in charge of the process—the Government are. Indeed, they took to themselves additional powers to determine how this very referendum should be run.

It is interesting that the designation process for lead campaigners is still murky and uncertain, and I wonder who benefits from that. By way of contrast, long before the regulated campaign began in Scotland, both Yes Scotland and Better Together had been designated lead campaigners for their respective sides on the ballot paper. What is the point and what is the reason for the Government to flout for the very first time their own guidelines, as issued by the Electoral Commission? To do so is very telling—and not in a good way.

The Electoral Commission has said:

“We currently do not know when we will be able to run the process to appoint lead campaigners.”

It is now February, and the Government are planning to hold this referendum in June. Frankly, this is not fair play, but foolish game playing. Having taken to themselves the power to set both the date of the referendum and the date of designation for lead campaigners, this puts in front of the Government the temptation, in some people’s eyes, to rig the process. They would be very foolish to succumb to that temptation. Let me say to the Government that the Prime Minister and his successors will sorely regret any perceived fixing of this referendum. We have already debated some of the issues surrounding purdah and so forth, and I think the Government should learn from that debate, as well as from the 40 years of debate within the Conservative party on this issue.

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

On the advice of the Electoral Commission and the timing of designation, there is a growing concern that the designation process will finish up overlapping the referendum period. In a letter to me, the chair of the Electoral Commission, Jenny Watson noted that the commission had

“recommended that the statutory six week process for the designation of lead campaigners should take place shortly before, rather than during the first weeks of the referendum period. This ‘early’ designation would provide clarity earlier for voters and campaigners about the status of campaigners.”

Does the right hon. Gentleman agree that it would be unforgivable if the Government were to allow, by sleight of hand, what amounts, frankly, to corruption of the designation process?

[Mr Dodds]

I agree with the hon. Gentleman. The Government really need to get on with this and get the matter resolved. Frankly, it would be scandalous if matters were allowed to drift and to drag. Again, that would call into question the Government’s handling of the referendum and its fairness. It would give cause for people to question whether they have made the final decision on this matter. If the Government were wise, they would want to ensure that once the people had spoken on this matter in a referendum, everyone would accept—from whatever side and whatever the outcome—that the decision had been properly taken by this country under the proper rules and that everybody will respect it for the foreseeable future. To do otherwise is short-term opportunism.

In conclusion, we need to face up to this crucial issue of the timing of the referendum. We need to ensure that the Government respect the Electoral Commission and that they respect the devolved Administrations in Northern Ireland, Scotland and Wales. On an issue of such import, we must put the national interest above every other consideration. We must respect the rights of the people who go to the polls in May. We must allow for the fullest possible debate on the biggest decision to be made by this country for generations. For those reasons, I commend the motion to the House.

--- Later in debate ---

[Pat Glass]

Now the hon. Gentleman is just trying to get me into trouble. I would never disagree with my leader.

Let me deal with the motion by discussing each of its parts, and I start with the premise that no case has been made for holding an early referendum. May I remind this House that we have been debating the UK’s place in Europe on and off for more than 40 years? I voted in the last referendum. It was 43 years ago, so we are hardly rushing at this.

[Mr Dodds]

If the hon. Lady will not make any comment in support of her party leader here at Westminster, what has she to say to the Labour leader in Wales, the First Minister, who has come out strongly against a 23 June date?

[Pat Glass]

He has given his opinion, and of course we will listen respectfully to those arguments, as I am sure the Government will. We know that while all this goes on, uncertainty and instability is created in our businesses and in our economy. We are already seeing the damage done to business confidence in the UK, inward investment and the economy by the uncertainty and the potential risks that lie with an EU referendum and exit. Those uncertainties and risks increase the longer they go on. That is not good for our country, for our economy and for regions such as mine, where hundreds of thousands of jobs depend directly and indirectly on our membership of the EU.

Air Passenger Duty: Regional Airports

Lord Dodds of Duncairn Excerpts

Tuesday 20th October 2015 Westminster Hall

[Julian Knight]

My hon. Friend is a strong champion of regional aviation, and many of her constituents in Redditch not only use Birmingham airport and enjoy its facilities but work there.

As I was saying, York Aviation calculated that some 25,000 jobs rely on the airport, which puts it in a similar bracket to developments such as HS2 in driving the regional economy. Passenger numbers at Birmingham airport have grown by 13% over the past five years and in 2014 alone it handled more than 9.7 million passengers, including a 7.2% growth in long haul. Nevertheless, the airport is running well below capacity. It could conceivably accommodate up to 36 million passengers, rather than just under 10 million.

The potential for Birmingham airport, and I am sure for many other hon. Members’ airports, to impact positively on the UK economy is considerable. Genuinely, we have only scratched the surface of what we can achieve. While we take seemingly forever to debate a new runway at Heathrow, jobs and direct investment in the regions are going begging.

The west midlands is in receipt of over a quarter of all foreign direct investment entering the UK and leads the UK in terms of export growth. It is the only part of our country with a positive visible trade balance with the European Union, seeing overall growth of 100% between 2009 and 2014. Birmingham airport is central to that—but more growth and jobs could be had. A major stumbling block is the air passenger duty regime.

Regional airports are at a disadvantage, as rates of APD are calculated on the destination of the flight and the class of travel that a passenger is in. This fee is the same whether someone flies from Heathrow, Birmingham or any other English or Welsh airport: for flights within the European open skies area, the fee is £13 in standard or £26 in a higher class, but jumps dramatically for flights outside that area, to £71 in standard class or £142 in a higher class. APD in the UK is considerably higher than in our neighbouring competitor economies: in Germany, it is £5.70 in the European open skies area and £32 for the rest of the world in standard class; and in France it is cheaper still, at £3.90 in the European open skies area and £8.90 for the rest of the world in standard.

An Airport Operators Association survey found that the APD has had a direct effect on passenger numbers and routes. Bristol airport reportedly said that several domestic services were scrapped as a result. Routes between Southampton, Leeds-Bradford, Glasgow, Edinburgh and Brussels airports had been “adversely affected” by the tax.

[Mr Nigel Dodds (Belfast North) (DUP)]

I congratulate the hon. Gentleman on securing this important debate. What he is alluding to is all the more pertinent in relation to Belfast City airport and the international airport in Northern Ireland because we share a land border with the Irish Republic, so a few miles down the road Dublin airport does not apply such taxes. We have severe taxes—air passenger duty—in Northern Ireland, so there is a double whammy for us. I support what he is saying and I urge the Government to take seriously the impact of this iniquitous tax on small, regional airports and peripheral areas of the United Kingdom.

[Julian Knight]

The right hon. Gentleman highlights an issue to do not only with his own airport but the wider UK aviation industry. Both Derry airport—also in Northern Ireland—and Cambridge airport in England claim that they are being prevented from expanding their services by APD. My argument is that the hub status of the major London airports, in particular Heathrow, allows them more easily to absorb the shock of air passenger duty, but that is not the case for some of the regional airports.

There have of course been successes in attracting new long-haul routes to Birmingham, for example. We have Air India now flying its routes to Delhi and Amritsar daily; American Airlines has begun daily flights to JFK, alongside the daily flight to Newark—that is not Nottinghamshire; Emirates has launched a third daily flight to Dubai; and this summer Hainan Airlines operated 34 twice-weekly flights between Birmingham and Beijing.

As was made clear to me in my recent meetings with the Ontario Teachers Pension Plan, which owns Birmingham airport and is a responsible trustee, my local airport would love to have a regular direct flight between the UK and China week in, week out, rather than only for the summer, and it is a real failing that in the week in which the Chinese President is visiting we do not have a regular scheduled flight between the UK’s second city and Beijing. We cannot separate the issue of APD and devolution, which is a central plank of the Government’s approach to reforming and reinvigorating the UK economy.

It is hugely important that the fruits of growth that come from devolution extend to our connectivity as well. That must include greater use of our regional airports for short and long-haul flights.

Finance Bill

Lord Dodds of Duncairn Excerpts

Tuesday 21st July 2015 Commons Chamber

[Mr Nigel Dodds (Belfast North) (DUP)]

The Minister will know that the Stormont House agreement contains plans to have a lower rate of corporation tax for Northern Ireland, if the Assembly and the Executive so decide. He knows the problems that exist on the implementation of that agreement. Will he undertake to continue to work with the Northern Ireland Executive—with those parties that want to make progress economically in Northern Ireland—to ensure that that corporation tax relief is introduced as quickly as possible?

[Mr Gauke]

I am happy to give that undertaking to the right hon. Gentleman. We have always been clear that the devolution of corporation tax was dependent on stability in the finances for Northern Ireland, and I believe we agree on that point. We want to be in a position to implement that policy and I know he is also keen to implement it, but it is dependent on proper progress being made, and I entirely agree with him on that point.

To provide certainty to business and encourage investment in plant and machinery, the Bill also sets the annual investment allowance at the permanent higher level of £200,000. Improving productivity also means prioritising investment in infrastructure.

Corporation Tax (Northern Ireland) Bill

Lord Dodds of Duncairn Excerpts

Wednesday 4th March 2015 Commons Chamber

[Mark Durkan]

I fully take the hon. Gentleman’s point. That was recently made apparent within the precincts of this Parliament when a delegation from the Irish League of Credit Unions gave evidence to the all-party group on credit unions, chaired by the hon. Member for Worcester (Mr Walker). The league pointed out that nearly 450,000 credit union members are accredited to it in Northern Ireland. The credit unions in Northern Ireland have total assets of over £1.2 billion.

Credit unions do not pay corporation tax on their lending activity—perhaps that was one of the misdirections in my original amendment in Committee—but they do pay it on their investments. There are issues about how the regulators have treated that in limiting some of the investments that they are able to make, although my conversations with regulators suggest that we may be turning a corner of understanding and a slightly more relaxed interpretation may be on the way. In 2012, credit unions in Northern Ireland paid £3.75 million in corporation tax on their investments. The three credit unions in my constituency alone pay between them over £0.5 million in corporation tax on their investments. That is a significant amount of money to them given that it purely goes back to their members in dividend payments. It is not going off to make profits by being speculatively invested in property or in any dubious market activities; it is staying very much within the traditional meat and drink of credit union activity, and rightly so. On that basis, it would be perverse to treat credit unions as being in the same category as a financial services corporation that may try to move in from London, Edinburgh or elsewhere in order to artificially avail itself of a devolved corporation tax rate.

[Mr Nigel Dodds (Belfast North) (DUP)]

We await the Minister’s more detailed explanation and context setting, but he said in Committee, on credit unions paying corporation tax on investment income and capital gains:

“As credit unions do not have a trade of lending money for corporation tax purposes, they are therefore neither explicitly included nor excluded from the Northern Ireland rate and as such are in no worse a position because of it.”––[Official Report, Corporation Tax (Northern Ireland) Public Bill Committee, 5 February 2015; c. 51.]

Can the hon. Gentleman help the House in dealing with the Minister’s point?

[Mark Durkan]

It was a bit of an enigma to some of us on the Committee. Although we asked the Minister about it, not much light was cast on the limbo status of credit unions whereby they are neither included nor excluded. Subsequently, I asked him about the power in clause 1, page 66, to amend the definitions of “excluded trade” or “excluded activity” or to make provision about the meaning of “back office activities”. That gives the Treasury a fair degree of leeway in making subsequent adjustments. I asked him whether that implied that some accommodation could be made regarding the particular sensitivities around credit unions—and now I add Northern Ireland-based mutuals, as we are all joined in making that case. I hope that he will be able to shed some light on that. If he can assure us that we are all working under a misapprehension and that our concerns can be allayed, then so much the better, but people want to see it clearly in the Bill and do not know why it should not be there.

The Northern Ireland credit unions fall within the legislative remit of the Assembly in respect of their registration and some of their activities, so it would be bizarre if it was denied the specific power to set their corporation tax rate in the same way that it would for SMEs, for example.

As credit unions are well embedded into the communities in which they are based, it just does not seem fair that they should be subjected to a corporation tax rate that is very different from the rate for the businesses they work alongside in those communities and neighbourhoods.

As we identify in the amendment, we want to extend the same consideration to the Progressive building society, for instance. Ministers may suggest that designing the clause to suit the particular circumstances of the Progressive building society would create the danger that we might somehow admit all sorts of others to the benefits of doing such activities. However, just as the details of regulations specify a threshold of business for small and medium-sized enterprises, the amount of employment, and the percentage of work time and expenses in Northern Ireland as opposed to elsewhere in the UK, so other measures could easily be built in to protect building societies and mutuals that wholly, solely or at least very largely base or centre their activities in Northern Ireland, rather than organisations that operate more widely and might artificially skew some operations to the north of Ireland to benefit from the corporation tax rates. If that is a concern or issue for Ministers, it could easily be accommodated.

It is clear that there is broad support on this issue from the parties in this House and from the wider range of parties in the Northern Ireland Assembly. Nobody intended, assumed or understood that credit unions and legitimate, bona fide locally based mutuals, such as the Progressive, would be caught in the Bill’s preclusions. We are seeking targeted and focused exceptions with the aim of ensuring that credit unions in Northern Ireland do not unduly pay corporation tax.

The amendment is an attempt by the parties to recognise that, unlike credit unions in Great Britain, which have been able to benefit from Government finance in the form of growth, development and modernisation funds over the years, credit unions in Northern Ireland have not benefited from direct funding. Credit unions in Northern Ireland are adjusting to the new regulatory obligations under the Financial Conduct Authority and the Prudential Regulation Authority, which have created issues of corporate governance, training and IT standards, but none of that has been funded or supported in any way. One compensation that we might, with due diligence, seek to extend to them would be to make sure that they are at least exempted from the higher rate of corporation tax that is meant to apply to big corporates and businesses in financial services. That is the salient point of the amendment.

I hope that the Financial Secretary will acknowledge that amendment 1 would not trigger any of the difficulties that he said would have arisen from the original amendment in Committee. The scope of this amendment extends beyond credit unions to take in other legitimate mutual organisations, such as the Progressive building society—in fact, that is the only one I can distinctly identify—and that is included for a purpose. I hope that the Financial Secretary and the Secretary of State, who has received representations from Committees of the Assembly, will show some understanding. I look forward to hearing any explanation but also, more importantly, any assurances about how the Government intend to respond to such issues as the Bill is taken forward and as its various rule-making powers are operated in future.

--- Later in debate ---

[Naomi Long]

I do not wish to detain the House for very long. I merely want to put on record my thanks to the Government for the work they have done in bringing this Bill forward, and also to the Opposition for their support for the Bill. I welcome the progress in this matter, which we have debated many times in this House, and we also talked about it for a long time when I was in the Assembly. Those of us on the Select Committee on Northern Ireland Affairs spent many hours discussing the issue of corporation tax and its potential positive impact on Northern Ireland and its economy, so I welcome the progress we have made in what is a relatively short period of time from the announcement. It is good to see this measure reach its Third Reading today.

Others have already said this is not a silver bullet for the economic challenges that face Northern Ireland, but it is a very important lever for the Northern Ireland Executive to have within their control to address the imbalances in the economy, to encourage further growth of our local companies and to encourage further inward investment. Even without corporation tax being reduced, Northern Ireland outperforms many other regions in attracting inward investment. This gives us another opportunity to raise our profile internationally and encourage more companies to look at Northern Ireland as a serious investment prospect, but also to see us as a competitive region where they can locate and do real business.

I look forward to seeing this Bill reach fruition. There will be challenges ahead for the Northern Ireland Executive as they go about the more complex work of setting a rate for corporation tax, particularly in terms of affordability at a time when resources are extremely tight. It will be difficult because there will be a gap between any benefits from the change and the amount they will lose to the Treasury in the interim. The Executive will have to look at that period very carefully in terms of affordability and how that is managed.

There is also a challenge in dealing with investment in skills, which are required if we are to see the full benefits of any reduction in corporation tax. There is no point in reducing corporation tax to get new businesses to come in and invest if we do not have the skilled workers to be able to take up employment in those companies. Part of the due diligence that any company will do before investment will involve looking at our skills base. That will be one of the key issues. We therefore have to see a renewed focus from the Executive on investing in skills, and particularly the right skills for the companies that we are encouraging to come to Northern Ireland.

We also face challenges in terms of infrastructure. As a civil engineer, it would be remiss of me not to mention that. It is not just our communications infrastructure, but also our physical infrastructure, which requires investment. Companies doing due diligence before investing in a region will look at such issues. It is hugely important that we are able to invest in infrastructure in a way that will both encourage and benefit companies locally who are already involved in growing their businesses and attract new inward investment to Northern Ireland.

Our connectivity will need to be defended. That is a role that both Westminster and the Assembly can have some regard to. It is hugely important that our air transport links, particularly those routes that allow us to cargo material from Northern Ireland for export markets, are protected. That should detain this House perhaps more than it has done to date.

If we are to benefit the economy and feel the true benefit of this change in corporation tax, we also need to create the kind of political stability in Northern Ireland that is conducive to creating economic growth.

[Mr Dodds]

On the economic issues and making the most of this devolved corporation tax power, does the hon. Lady agree that it is important that the Assembly and the Executive determine the sort of rate that is going to apply as quickly as possible so that Invest NI can get out into the marketplace and begin to sell Northern Ireland and the benefits of this as soon as possible? As she knows, there is a big lead-in time in terms of attracting investment?

[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.

--- Later in debate ---

[Ian Paisley]

Indeed.

Some Members have suggested that the devolution of corporation tax is not a silver bullet, but I do not think I ever heard anyone say that it was going to be a once-in-a-lifetime, miracle-working, stand-alone solution. No one ever thought of it like that. It is one of the arrows in the quiver, to be fired at the right target at the right time.

The important thing about the corporation tax measure is that it will change people’s perceptions about our economy. We have a go-forward, low-tax, incentivised economy. Indeed, that seems to be part of the Government’s own economic plan. They have tried to reduce taxes time and again, and I welcome that. I agree with the right hon. Member for Wokingham (Mr Redwood), who has often contributed to debates in the House by demanding that we have even lower taxes across the whole of the United Kingdom. Would it not be a far better day today if the Bill were introducing a reduction in corporation tax for the whole of the United Kingdom? That is what we should really be debating, and I hope that one day Government Members will follow our lead and reduce their corporation tax to the new levels that Northern Ireland has ambitions to achieve.

The Government’s plan to reduce tax is welcome. When we look at the history of the economy of the Republic of Ireland, we see that it was not corporation tax reductions alone that supported the country’s boom years. There were other unique selling points that it is important to consider. The Republic sold the fact that it had a great, well-educated and advantaged youth population who made the country cheaper, as an offshore part of Europe, to invest in. Northern Ireland competes on exactly the same footing as that, and I believe that we can do it even better. After all, we are British. We are an offshore part of Britain: we are Britain offshore. If we can use that to our advantage as a unique selling point, we should do so, and I welcome those who will join us. As other Members have said, this change will affect 34,000-plus local companies, 26,500 of which—the small and medium-sized enterprises—form the backbone of our economy. I know that many of them welcome this measure, and I look forward to the opportunities that the legislation will create.

I welcome the fact that those on the Front Benches have changed their minds on this matter. For a long time, certain Members were like John the Baptist, in that they were preaching in the wilderness. Eventually, however, they have managed to convert; I think that those on both Front Benches recognised that they needed to do so. That is a good thing. There has been a lot of thought on this issue on both sides of the House and I welcome the change of heart, particularly on the Labour Front Bench. I remember the former Prime Minister telling us in 2007 that he could not do this. He gave us the Varney review and told us that we could tamper with this, that and the other. Indeed, the then Treasury spokesman, the right hon. Member for Leigh (Andy Burnham), said at the time that corporation tax reduction for Northern Ireland

“does not offer the best way forward”.—[Official Report, 17 December 2007; Vol. 469, c. 74WS.]

I am glad that we have recognition today that it is the best way forward, and I hope that we will have unanimity on the matter in the House.

As I have said, this is not going to be a one-night wonder; it will not change things overnight. It will probably take at least a decade before we reap the benefit of the change, but anyone who knows that Northern Ireland’s economy also has a strong agricultural sector will appreciate what I am about to say. Before we can reap the benefit of the changes, we have to sow, and today we have very good seed that I believe we are going to be putting into very good ground. I look forward to seeing the game-changing strategy that is being put in place today reaping a wonderful economic harvest for Northern Ireland over the next 15 to 20 years. I believe that anything the Republic of Ireland has been able to offer as a result of its corporation tax reduction, Northern Ireland will be able to do on steroids. We will do it better. After all, we are part of a G20 nation, and the benefits of that stability should be recognisable to all.

In 2011, the Select Committee, under the watchful eye of the hon. Member for Tewkesbury (Mr Robertson), indicated that this measure was going to be a game-changer. The Select Committee is to be congratulated on pursuing this matter and encouraging the Government to look afresh at it. At that point, it had been dropped from the agenda and people thought that it was all over, and the Chairman of the Committee should be singled out today and congratulated on pushing the matter forward.

Over the past five years, the Northern Ireland Executive have demonstrated their ability to look at other good competitive economic measures that we should be embracing.

[Mr Dodds]

Would my hon. Friend acknowledge that, in addition to some people here giving up on devolving the power to set corporation tax rates, there were parties and politicians in the Northern Ireland Assembly who had also given up on it? Our party did not give up on it, however, and we are glad to be seeing the fruits of our labour today.

[Ian Paisley]

I have to say that I am shocked. My right hon. Friend wants me to start electioneering in the House. He wants me to say that it was us that won it. Well, it was! We know that and the electorate know it; we will prove that on 7 May.

[Mr Dodds]

Look at the record.

[Ian Paisley]

I know that the record is a powerful one. We did not give up on this; we pushed for it. I think the hon. Member for Tewkesbury will confirm that it was our party that pushed the Select Committee to press the issue and to hold not just a desktop inquiry but a solid investigation. That investigation took us overseas, to the Republic of Ireland and to the United States. We looked at the issue, we pushed it solidly, and today we are reaping the benefits of that. Some of the foot-draggers did not want to see this day, but I am glad that those of us who were swift of foot have now reached the finish line.

Northern Ireland offers a unique brand for people to invest in. Obviously, we have a land border with the Republic of Ireland, so we have to demonstrate additional economic stimuli to get our economy going. The Bill will allow us to do that. A recent Ernst and Young survey on global cities of the future found that Belfast was one of the most business-friendly medium-sized cities in the world to invest in. That shows that what Northern Ireland is offering, to foreign indirect investment in particular, is an agile and capable economy with workers who want to see their economy change and grow.

We export the best buses; they come from my constituency to this city. Northern Ireland also exports the best pavements. I think that they come from the constituency of the hon. Member for South Down (Ms Ritchie), and they are used to pave London. We also export some of the best drink to ply the workers with, from Bushmills, and all our existing exports represent a continuing opportunity to grow the Northern Ireland economy. Northern Ireland is a good place to invest in. Indeed, 75% of investors reinvest after having been in Northern Ireland. Not only do they go there to make their initial investment but the lion’s share of them go back and reinvest because they see it as the place where their pounds can grow.

BMI Pension Fund Compensation

Lord Dodds of Duncairn Excerpts

Wednesday 17th December 2014 Westminster Hall

[Mark Lazarowicz]

Absolutely. I have made that point already and I will touch on it briefly again. Certainly, this raises much wider issues.

Just as the payments quite rightly made to the Equitable Life pension scheme members were compensation—they were not a direct benefit arising from the scheme—similarly, the BMI pension fund members have lost out through no fault of their own, and I believe they require better treatment. The Equitable Life experience shows that where the Government decide that they want, for political reasons, to compensate those who have suffered adversely through circumstances beyond their control, they can find a way to do so. I believe that they should do so for the BMI pension scheme members.

[Mr Nigel Dodds (Belfast North) (DUP)]

I, too, congratulate the hon. Gentleman. He is making a relevant and important point about the difference in how Equitable Life payments and these payments are treated for tax purposes. When I wrote on behalf of some people in my part of the world, in Northern Ireland, who are affected by this, the Financial Secretary to the Treasury wrote back:

“As I am sure you will appreciate, HM Revenue & Customs has to apply legislation consistently, and does not have discretion to waive rules passed by Parliament.”

We accept that entirely, but the hon. Member for Edinburgh North and Leith (Mark Lazarowicz) is right to say that the rules are what the Government and Parliament decide. In this case there is inequity and it needs to be addressed.

[Mark Lazarowicz]

I agree. That is precisely my point.

I ask the Minister to take a number of steps and, if she is not prepared to agree to them today, perhaps she will at least consider them and come back to hon. Members at a later stage.

First, it is right for the Government to ask HMRC to review the application of the tax rules in this case. The trustees of the BMI pension fund did lobby for the rules applying to the then annual allowance limits and the lifetime allowance rules to be disapplied in the case of the BMI scheme, because of the special circumstances of the scheme. I should not have thought that it was impossible for it to review the rules, given the special circumstances, notwithstanding the legislation that applies to pensions more generally.

Secondly, if HMRC will not review the position, I ask the Government to consider legislating to make a change for this particular case. Again, the Equitable Life scheme is a model that can be followed.

EU Budget (Surcharge)

Lord Dodds of Duncairn Excerpts

Monday 10th November 2014 Commons Chamber

[Mr Osborne]

I thank my right hon. and learned Friend for his support; he is not always fulsome in his support of our European policies, so that is particularly appreciated. He is right that around the table were other members states that had been hit by this very large payment—the Dutch, the Italians, the Greeks and others—and therefore there was a lot of sympathy for trying to change the rules. In parallel, as he would know, there is a discussion with the Commission about the British rebate, which is properly a matter for the discussion with the Commission rather than ECOFIN.

[Mr Nigel Dodds (Belfast North) (DUP)]

Does the Chancellor accept that, whatever is said about the rebate, this substantial bill for the United Kingdom still represents an EU penalty for stronger economic performance? Does he not think that there are better ways to spend £850 million than handing it over, albeit next year, to the European Union?

[Mr Osborne]

I agree with the right hon. Gentleman that the European Union could spend the money far better than it does through reform—that is the reform we are seeking to achieve. Of course membership of the European Union does mean adjustments to the payments each year, and sometimes Britain has been a beneficiary of them—indeed, when the shadow Chancellor put the country into recession we received a tiny bit of money back from the EU. That is one of the regular features of membership but, as the right hon. Gentleman says, it demonstrates why we need further reform in Europe.

Oral Answers to Questions

Lord Dodds of Duncairn Excerpts

Thursday 1st May 2014 Commons Chamber

[Mrs Grant]

I probably just need to say yes to all that—and many congratulations to all concerned.

[Mr Nigel Dodds (Belfast North) (DUP)]

The Minister rightly mentioned the Tour de France, but will she also note the fact that the opening stages of the Giro d’Italia cycling race will take place in Northern Ireland next week? That is important in the context not only of world cycling, but of the Northern Ireland Executive’s efforts to bring major sporting events to Northern Ireland, thus greatly increasing the tourism potential of the Province.

[Mrs Grant]

I think it is fabulous that that event is to take place in Northern Ireland. Such events have huge benefits, not just for tourism but for the economy, and they are also a real inspiration when it comes to persuading people to take part in sport.