Northern Ireland Budget Bill

Lord Duncan of Springbank Excerpts

2nd reading (Hansard): House of Lords & 3rd reading (Hansard): House of Lords & Committee: 1st sitting (Hansard): House of Lords & Report stage (Hansard): House of Lords
Thursday 31st October 2019 Lords Chamber

Moved by

[Lord Duncan of Springbank]

That the Bill be now read a second time.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy and Northern Ireland Office (Lord Duncan of Springbank) (Con)]

My Lords, sadly, this Bill is necessary. Although cross-party talks continue, the United Kingdom Government must take forward certain essential legislation to maintain the provision of public services. The legislation before the House today places the budget published in February 2019 on a legal footing and enables the Northern Ireland Civil Service to access the full funding for this financial year. Royal Assent is necessary to avoid the use of emergency powers under Section 59 of the Northern Ireland Act 1998.

I shall now briefly turn to the Bill’s contents, which largely rehearse what the former Secretary of State set out to the House in a Written Ministerial Statement earlier this year. The Bill authorises Northern Ireland departments and certain other bodies to incur expenditure and use resources for the financial year ending on 31 March 2020.

[Lord Hain (Lab)]

My Lords, I apologise—for the second time this week—for interrupting the Minister so early in his speech. However, I would be very grateful if he could give the House any information in respect of the costs presumably incurred under this Bill as a result of the compensation paid under the Historical Institutional Abuse (Northern Ireland) Bill. Will that legislation go through the Commons as it will do through this House later today—speedily and without amendment, as I understand it? Does the Minister, or the Chief Whip, have any information on that, please?

[Lord Duncan of Springbank]

I do not mind being interrupted by the noble Lord. The sum total of the expected costs under the historical institutional abuse Bill—this is an early estimate—is around £237 million, which will come from the Northern Ireland block grant. Money has been set aside and it will be met in full; of course, it may be higher than that depending upon circumstances. I believe that the historical institutional abuse Bill will pass through this House swiftly and, I sincerely hope, without amendment, today. I would like to believe that it could pass through the House of Commons in exactly the same fashion, but while I would like to make that so, I cannot guarantee it. But I hope to be able to report back with more information during the discussions we will have on the HIA Bill. That should help the House be aware of what we are facing.

[Lord Hain]

I thank the Minister very much for that response. I know, and the whole House knows, that he has been fully supportive of the Bill, and I am grateful for that. But in any intervening discussions that might be had with the Chief Whip here or the Chief Whip down there, can it be made clear that there is no reason at all why the Commons cannot do the same? The victims of historical institutional abuse will not understand if that does not happen.

[Lord Duncan of Springbank]

I believe that the victims of historical abuse are watching us right now, not just in this House but in the other place. The noble Lord is correct in assessing what their view would be if that Bill fails to pass through both Houses. I will return to this during discussions in Committee on the historical institutional abuse Bill, to bring further matters to his and the House’s attention. If I may return now to the Bill before us, I shall talk briefly on its contents.

The Bill authorises Northern Ireland departments and certain other bodies to incur expenditure and use resources for the financial year ending 31 March 2020. Clause 1 authorises the Northern Ireland Department of Finance to issue £5.3 billion out of the Northern Ireland Consolidated Fund. The sums of money granted to Northern Ireland departments and other bodies are set out in Schedule 1, which also sets out the purposes for which the funds may be used. The allocations in this budget reflect where the key pressures lie in Northern Ireland, building on discussions we have had with the Northern Ireland Civil Service, the main parties in Northern Ireland and other stakeholders. Where possible, they reflect the previous Executive’s priorities.

Clause 2 authorises the temporary borrowing by the Northern Ireland Department of Finance of around £2.6 billion, to safeguard against the possibility of a temporary deficiency in the Northern Ireland Consolidated Fund. If used, this money will be repaid by 31 March 2020. Clause 3 authorises Northern Ireland departments and other specified public bodies to use resources amounting to some £6 billion in the year ending 31 March 2020 for the purposes specified in Schedule 2. Clause 4 sets limits on the accruing resources, including both operating and non-operating accruing resources, which may be used in the current financial year. Since this Bill would normally be taken through the Assembly, Clause 5 includes a series of adaptations that ensure that, once approved by both Houses, it will be treated as though it were an Assembly budget Act.

Alongside the Bill, the Government have laid a Command Paper; a set of main estimates for the Northern Ireland departments and bodies covered by the budget Bill. These estimates, which have been prepared by the Northern Ireland Department of Finance, set out the breakdown of resource allocation in much greater detail. I commend the Bill to the House.

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[Lord Duncan of Springbank]

My Lords, I welcome the support from across the House for the Bill. However, I have no wish to be standing here moving it and I recognise that your Lordships have no wish to be sitting here listening to me doing so. I fully appreciate that this will not be possible again.

The Executive formation statutory instrument that we shall consider shortly hereafter reminds us that there is a period until 13 January for the formation of an Executive. If we are unable to do that, I think that this House and the other place will be very reluctant to extend the period further. That will bring us into new territory in terms of what needs to happen next. I should have thought that, at that stage, there will then be an election in Northern Ireland. A lot will depend on its outcome: if an Executive can be formed, we are out of a hole; if it cannot, we are in a hole. Noble Lords here recognise what direct rule would look like and why it is not a preference that we wish to explore. None the less, we are discussing a budget, and certain questions were asked regarding both the budget and more broadly. I will try to answer them in turn.

Touching on comments made by the noble Lord, Lord Empey, both today and in the past, the noble Lord, Lord Bruce, asked whether there has been an increase in funding for the health service. There has been an increase of 3.8% in that funding. However, as the noble Lord conceded, the reality is that that amount of money has not been adequate to address the issues raised by the noble Lord, Lord Empey, which require more than a 3.8% increase in funding. Although we have put a further £17 million into an in-year monitoring exercise, that too is inadequate to address these significant problems. Only an incoming Executive, or government by other means, can truly address these issues. The shocking statistic presented yesterday by the noble Lord, Lord Empey, and echoed again today by other noble Lords, is chilling to consider. That alone should be reason enough for the parties in Northern Ireland to give due consideration to expediting their ability to get that Executive back up and running—I hope that it is. None the less, this budget must go forward.

I want briefly to touch on the renewable heating incentive. In March, I made statements in the light of a heated but sensible debate in this place about the need for independent assessment of the hardship in Northern Ireland as a consequence of the subsequent and serious failures in developing a workable approach to RHI. I made a number of commitments then. I am reminded of the quotation from the Duke of Wellington when he chaired his first Cabinet meeting. He said that he gave them the orders and discovered that they wanted to discuss them. I said very clearly what I felt was appropriate for the Northern Ireland Civil Service to move forward with, but I cannot order the Northern Ireland Civil Service to move forward on that basis. A protracted discussion then ensued on how to move this issue forward. Steps have been taken, some of which I will rehearse now, but I commit to writing to my noble friend Lord Lexden and placing in the Library a full and detailed assessment of this issue by tomorrow. I will share that assessment, because noble Lords deserve it and should have had it before now.

Let me put on record where we are on this approach. The responsible department in Northern Ireland held a call for evidence between 17 June and 10 July to examine the issues that should be brought forward for discussion. It published the responses to the consultation on 10 October. It has appointed an independent energy consultant by the name of, I think, Andrew Buglass. His responsibility will be to develop relevant definitions of “hardship” and engage directly with the participants, so that each case will be examined to ensure that we have that information. We expect that that will be responded to before the end of the year.

I will put all this in a detailed response to my noble friend Lord Lexden, to make sure that he has the information. I put on record an apology for this not happening beforehand—he deserved it before now. I should have informed the House of the steps being taken before the debate, rather than doing so now. I hope that noble Lords will accept the apology in the manner in which it is given.

[Lord McCrea of Magherafelt and Cookstown]

Can the Minister tell the House whether there is any clarity on the differential between the tariff proposed for Northern Ireland and the tariffs in England and the Republic of Ireland?

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[Lord Duncan of Springbank]

I believe that there is clarity there. I have answered that question before but, again, for the benefit of all, I will make sure that that information is included in my answer to ensure that there is an appreciation of how the tariff in Northern Ireland sits alongside tariffs in the rest of the British Isles, so that it can be understood. The noble Lord will recall that when we discussed this issue, we looked at different elements which created the need for differential tariffs for particular time periods and baselines. Rather than explaining this at greater length, I will put it in the response that I will lodge in the Library tomorrow.

Yesterday, the noble Baroness, Lady Lister, asked about welfare and I believe that I gave a positive response. She has subsequently written to me and I will respond in a similarly positive manner. I do not wish to see a situation develop in Northern Ireland where those who are experiencing these challenges and facing potential hardship suffer in any way—I repeat, in any way—as a consequence of the absence of an Executive. I will happily share that letter with noble Lords. I will put a copy in the Library, so that they can see what I believe we should be doing to ensure not only that we address this matter expeditiously but that the people of Northern Ireland can appreciate that it will be done, so they will not face the hardship which might indeed have been on the horizon had we not been able to move forward in this regard.

On the role of an incoming Executive, it is not going to be easy for them because in truth, a number of the bigger problems—not least in the health service and education—stem from before the collapse of the previous Executive; they did not start with the collapse of this one. There are long-standing issues which have not been addressed for a range of reasons, and there will be a serious challenge for any incoming Executive or whomsoever has to administer governance in Northern Ireland. For obvious reasons, I hope that it is an incoming Executive, but I am aware that there is only so long that this can continue. I have made a number of statements about this in the past and events have made a liar of me. I do not wish to repeat those statements, but I shall repeat a simple one: the people of Northern Ireland deserve much better than they have got, and we have to move forward in a sensible manner.

The noble Lord, Lord McCrea, asked why certain issues have been taken forward in this place and not others. The only thing I would note is that if we end up with direct rule, I am afraid that this House and the other place will decide which issues are going to be taken forward and in what order. I do not believe that that is the right way forward at all, and it may well be that they do not marry up with the situation in Northern Ireland, even though I would wish it to be so. That is a portent and a warning.

The noble Lord, Lord Murphy, raised the question of the Barnett consequentials. I do not have the exact answer but I will find out and report back to the noble Lord if he will allow me to do so.

If I have failed to address any particular issue, I will happily write to noble Lords.

[Lord Lexden]

Can my noble friend give the House any information about the publication of the independent report on the inquiry?

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[Lord Duncan of Springbank]

My noble friend has reminded me of something that I could not find in my written notes. I cannot give an exact date, but he will be aware that we published our own report on that. I shall use the word loosely, but I hope that its publication is imminent. I think it has reached the stage where it can be published and that now, it is just a question of when. The moment I am aware of the publication date, I will ensure that noble Lords are given it so that they are aware of it. I do not want to keep it a secret; it is just that I do not have the information.

[Lord Hain]

Perhaps the noble Lord would follow up on our previous exchange, and I apologise to noble Lords for briefly pursuing this. It is my understanding, based on recent discussions I have had at the Bar of the House with Members of Parliament, including MPs from Northern Ireland, that business managers in the Commons are telling them that there is no time to take the remaining stages of the Historical Institutional Abuse (Northern Ireland) Bill. If that is the case, perhaps I may put two things on the record. First, that is not right. To use the excuse of electing the Speaker on Monday as a reason not to take through the Bill is unacceptable. If it means MPs sitting for a few hours more on Monday, they must do so in order in to protect the victims of historical institutional abuse because they have suffered horrendously.

The other procedural option—I have checked this, and I am a former Leader of the Commons—is that a First Reading in the Commons could take place. It could then go into the wash-up period. I have been told for a fact by Members of the Labour Opposition that they will support it, as will the DUP, Lady Sylvia Hermon, the Liberal Democrats and, I am sure, the SNP, so it could receive Royal Assent. The information that MPs have been given that there is no time for Royal Assent is nonsense. Royal Assent could be given at any time before Dissolution formally takes place. I am sorry to burden the House with this, but it is important to put it on the record.

[Lord Duncan of Springbank]

The noble Lord brings information to the House that I am not privy to. I have not had a chance to speak with business managers in the other place. I will be disappointed if his recitation of the details is correct, but I can say only that I do not know the answer because I have not had an opportunity to find out. We will return to that Bill later on this afternoon, when I will have more information. At that point, time having allowed me to have the necessary discussions with the other place, I will be in a better position, I hope, to answer the very questions that he raised.

[Lord McCrea of Magherafelt and Cookstown]

The Minister will accept that, if what the noble Lord was told by the other House is put into operation, that will be totally unacceptable to the people of Northern Ireland and to both Houses. I listened to the debate in the other House following a question to the Prime Minister and I have read the debates in this House on the issue, and there is unanimity on getting this matter resolved. Where there is a will, there is always a way. If there is not a way to push this through, it is because somewhere in the system, whether in the other House or within the Government, it seems there is not the will.

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[Lord Duncan of Springbank]

I do not doubt the resolve of this House in any manner, nor do I doubt the resolve of the cross-party approach to this matter. That was made very clear yesterday and in the exchanges thus far in this debate, and I expect it will be made clear in the debate to follow. On that basis, all I can say is that I will go away, find out more and bring back to noble Lords information that I hope will help everyone to appreciate what is going on.

[Lord Murphy of Torfaen]

The Opposition is entirely behind my noble friend on this, but could the Minister look at the point that he made about the wash-up? As long as we pass the Bill later and First Reading is taken in the other place—nothing happens; it is simply received—it could go into the wash-up and be given Royal Assent. That is the specific thing that we are asking the Minister to do between now and 4.30 pm.

[Lord Duncan of Springbank]

I am happy to take on that commission from the noble Lord. I will report back on the question of the wash-up and provide any information that I have at that point.

Returning very briefly to the Bill before us, I beg to move.

Bill read a second time. Committee negatived. Standing Order 46 having been dispensed with, the Bill was read a third time and passed.