Finance Bill

Lord Empey Excerpts

2nd reading & Committee negatived & 3rd reading
Tuesday 8th June 2021 Lords Chamber

[Lord Empey (UUP)]

My Lords, my noble friend Lord Forsyth referred to simplification. A 417-page Bill and 349 pages of Explanatory Notes to explain it—I know that most noble Lords will have read both from cover to cover—illustrates that we are not moving in the direction of simplification.

We now have a situation in this country where, because of our devolved settlements, significant economic barriers are being exercised in the devolved areas—particularly in Scotland, where taxation powers are broader than in the other devolved Administrations. But there is one thing that we are not doing: we are not explaining to the people in those regions where the money that the devolved Administrations spend comes from.

I have said before in this House that the devolved Administrations are a bit like giant ATM machines; when the cash stops coming out of the machine, those in the devolved areas simply say, “Well, Westminster didn’t give us enough”. We do not explain the arithmetic to the people in the devolved regions. That would not be a difficult exercise; all it would require would be for the Treasury, perhaps on an annual basis, to produce a short leaflet, or put it online, to show people where the money actually comes from. Local authorities often send out leaflets telling people how their taxes are spent but that does not happen nationally. There is a total absence of accountability to this Parliament for the funds given to the devolved Administrations. Vast sums of money are given over but there is absolutely no feedback or requirement to account for it. That is a perverse principle.

We talk about the pandemic and the rollout of the vaccines bringing our nation together, which I support and which is an excellent selling point. But when the biggest single element that affects the devolved Administrations is the money that they receive from the Treasury through block grants and Barnett consequentials, why do we not tell citizens in the devolved areas what the arithmetic is? It would not be a huge undertaking and it could be done on an annual basis. I suggest to my noble friend the Minister that the Chancellor might look at this. It is a simple exercise, but it would put in context what is actually going on in this country.

I want to refer to a matter that the noble Lord, Lord Dodds, raised on Clause 102, which deals with restrictions on the use of rebated diesel and biofuels. I mentioned the Explanatory Notes, at least some of which I have looked at. The background note at paragraph 33 states:

“This measure introduces changes that will remove the entitlement to use red diesel and rebated biodiesel from most sectors from April 2022 as part of the government’s strategy to meet the UK’s target of net zero carbon emissions by 2050.”

That is a laudable aim but, as the noble Lord, Lord Dodds, mentioned, there is a perverse effect relating to our power suppliers in Northern Ireland. They are legally and contractually required to have distillate back-up in the event of a crash of the gas supply, because there is a single source of supply, called SNIP, which comes from Scotland to Larne, in County Antrim. If anything were to go wrong with that pipeline—which, thankfully, has not happened in all the years it has been operating—it is perfectly legitimate to require the people who generate our electricity to have that back-up. It is the only power supplier in these islands that has that legal requirement placed on it.

Distillate means red diesel, so the effect of the measure in the Bill would be that 12,000 tonnes of red diesel which does not need to be burned would have to be burned by April 2022 and replaced with another 12,000 tonnes of white diesel, simply because one has dye in it and the other has not. There is no technical difference between the two fuels—they are just the same, but one has red dye in it and one does not. The systems would have to be purged and because the number of tankers allowed to bring fuel in per day is limited to eight for environmental reasons, it would take between three and four months to purge and then replace. I am no climate expert, but we will produce an additional 23,000 tonnes of carbon that could be left sitting there because that fuel supply is only for an emergency and, fortunately, has not had to be used.

I appeal to the Minister to take this matter back to his colleagues. I have no doubt that the legal obligation for our power suppliers to have this back-up is one of those things that people had not realised—both the noble Lord, Lord Dodds, and I were Energy Ministers in Northern Ireland, and I do not know whether I enforced it or if it is his fault—but it was the right thing to do. It might even have been the Deputy Speaker’s fault, because he was there before I was.

So I think it is just one of those things that had not been picked up, but its effects would be negative and perverse. It would mean extra costs for the consumer and have significant implications for our power suppliers because we are in an all-island market now; there is no similar requirement for power suppliers in the Republic of Ireland to have such a back-up, so they will automatically be more competitive when they are bidding to generate electricity to go into the grid. I appeal to the Minister to be kind enough to take this matter back to his colleagues and explain the difficulties. I am sure they can be dealt with and overcome.

I support the general principle, although there is no question that red diesel is abused. I also make the point that paramilitaries have been smuggling such products for 20 years—reasonably successfully so far, from their point of view—so to penalise the electricity consumer through no fault of their own would be perverse in the extreme.

By the way, it would be interesting to know—the Minister may not know this or he may not have the information at his disposal today, but he can let me know—if in fact he received any representations from the relevant department in the Northern Ireland Executive and, if so, when.

On a broader, general point, very few people in any of our lifetimes have seen anything like the last 18 months. There is no doubt that the Chancellor has been very vigorous in his attempts to ensure that our industries do not collapse, but I have to say to him that one industry that is in severe trouble, as the Minister will know, is the aviation and aerospace sector. I am a member of the APPG on Aerospace, and we had a well-attended meeting with the Minister, Robert Courts, just before I came into the Chamber. The sector is in despair because of the chopping and changing.

Aerospace is one of the key providers of high-quality jobs in the UK—over 100,000 of them, highly skilled and highly paid. It also provides apprenticeships, which are vital for the future. The uncertainties and the on/off process that is unfolding before us make it very difficult. Orders for aircraft have, naturally, gone down dramatically. We need more investment in reducing fuels, developing alternative means of propulsion and so on, but at present that whole supply chain is in dire straits. It is propped up by the furlough scheme, but that will not last for ever.

I appeal to the Government to get their house in order with regard to the aviation sector, and that means deciding when people can move around. I know these issues are difficult, but I have to say that a lot of the very good work that has been done is at serious risk of leading to high job losses. It is an area where this country in particular already has great leadership potential. In aerospace we are number two in the world, and there are not too many sectors of our economy about which we can say that. I appeal to the Minister to ensure that we protect this sector, which is so vital to the UK’s economy.

[The Deputy Speaker (Baroness Pitkeathley) (Lab)]

The noble Lord, Lord Moylan, has withdrawn, so I call the noble Baroness, Lady Neville-Rolfe.

Protocol on Ireland/Northern Ireland

Lord Empey Excerpts

Thursday 27th May 2021 Lords Chamber

[Lord Frost (Con)]

I certainly agree that it seems curious to us that there needs to be extensive process paperwork as well as the possibility of checks for goods that do not present any risk of moving into the EU’s single market. Obviously we agree that it is important to protect the integrity of the EU’s single market, but that needs to be done on a sensible risk-based basis. It was because of concerns such as this that we had to extend the grace period relating to supermarkets earlier this year, as is well-known, and why we remain concerned that a permanent solution to this problem has not been found yet.

[Lord Empey (UUP) [V]]

My noble friend the Minister will be aware of the report from Marks and Spencer yesterday which revealed the cost to that company of its operations on both sides of the Irish border. This huge, undemocratic and bureaucratic superstructure we have created is surely totally out of proportion to the tiny amount of trade, in European terms, that flows across the Irish border. Will my noble friend and the colleagues he is negotiating with at the EU seriously talk to some people about realistic alternatives that achieve the objective of protecting the single market but do not cause the divisions within the United Kingdom that this protocol has caused?

[Lord Frost (Con)]

My Lords, we looked very closely, obviously, at the report from Marks and Spencer earlier this week and the costs that it has identified as being connected to the protocol. It is important to note that, although it is sometimes said that we are not trying to implement the protocol, in fact both companies and this Government have shouldered very considerable costs trying to do so—both in the private sector and, for us, in the trader support scheme, movement assistance scheme and so on. All of that is having a chilling effect on the ability to move goods across the whole of the UK, which is causing so much difficulty, so we need to find a realistic and lower-cost, risk-based approach to doing this. That is what we hoped to see and we continue to hope that we can agree with the European Union.

Ireland/Northern Ireland Protocol

Lord Empey Excerpts

Thursday 29th April 2021 Lords Chamber

[Lord Frost (Con)]

My Lords, I am happy to assure my noble friend that this Government’s intention is that Northern Ireland will benefit fully from the great trade deals we have agreed and those coming in future, which we are currently negotiating; that intention is clear in the protocol. Unfortunately, because of legislation passed by the EU, Northern Ireland does not benefit from certain TRQs in the same way as the rest of the UK. This is one of the issues that we are discussing with the Commission at the moment. We are making progress on that and I am hopeful of a satisfactory resolution.

[Lord Empey (UUP) [V]]

My noble friend will be aware that, this week, considerable political instability was introduced into Stormont, in part because of the introduction of the protocol. Can he assure us that he is encouraging his counterparts in the European Union to engage with those who know something about the Belfast/Good Friday agreement? It is perfectly obvious that they do not really have a grasp on its balance and purpose. Can he also assure us that he is prepared to meet some of us to discuss this subject?

[Lord Frost (Con)]

My Lords, I assure my noble friend that we very much encourage the Commission—at all levels, from Vice-President Šefčovič and his team down—to engage with those who have experience of the negotiation of the Belfast/Good Friday agreement and everything that followed from it. We do everything we can to drive home the importance of protecting it as central to stability in Northern Ireland. Of course, I will be happy to meet my noble friend and colleagues to discuss this further.

Global Minimum Corporate Tax Rate

Lord Empey Excerpts

Wednesday 14th April 2021 Lords Chamber

[Lord Agnew of Oulton (Con)]

My Lords, we have always been a Government who want to reduce taxation wherever possible. However, the Government have been very active in dealing with the abuse of corporate taxation over the last few years—for example, with the corporate interest restriction rules, which prevent multinationals from avoiding tax using financing arrangements, raising £1 billion a year since 2017. Other examples are the diverted profits tax, which has led to an additional £5 billion by countering aggressive tax planning, and the tax charge on offshore receipts in respect of intangible property, which is forecast to raise £1 billion a year.

[Lord Empey (UUP) [V]]

Since we left the European Union, the Government say that we must retain control over our money and laws. Is there a danger that we could end up replacing one group of people who are able to tell us what we can and cannot do with our money and laws with another group, other than the European Union? In such circumstances, is there a risk that the United Kingdom actually restricts its freedom and ability to control its own economy?

[Lord Agnew of Oulton (Con)]

I am not sure whether the noble Lord is referring to the move by the American Government to put forward their own propositions on international tax reform, but it is important to clarify that the US Government are following the G7 work that has been done on pillars 1 and 2. It is rather good news that they are engaging in a much more front-footed way than happened under the previous Administration.

Budget Statement

Lord Empey Excerpts

Friday 12th March 2021 Lords Chamber

[Lord Empey (UUP) [V]]

My Lords, like others, I wish to congratulate our maiden speakers today. I am particularly pleased to see the noble Lord, Lord Bellingham, and the noble Baroness, Lady Foster, in their places. I have worked with them before and look forward to doing so again.

My noble friend the Minister will not be surprised that I wish to address a few matters concerning the Northern Ireland protocol. I know that he has done a lot of work personally to make this system acceptable, but I fear that the principles behind it will in fact make it ultimately unsuccessful. I point out that both Her Majesty’s Government and the European Union say that they had to come to this arrangement because they want to support the Belfast agreement in all its forms. As a negotiator of that agreement, I assure my noble friend that the protocol is the very antithesis of that agreement and will probably be fought out in the courts in the coming weeks. There are many of us—and many of us want to talk to him and the Government—with ideas for workable alternatives that will not disrupt trade to the extent that it has been disrupted.

To point out the scale of the problem, the trade flowing across the border from the United Kingdom to the Republic of Ireland is one-tenth of 1% of European trade flows. How is it that we have ended up in such a political mess over such a modest amount of trade? It is a sledgehammer to crack a nut. There are alternatives that respect the single market of the European Union, which we have no wish to damage given it was our idea in the first place. I would like the Minister to confirm that he and his colleagues would be prepared to meet with some of us to consider our proposals.

Protocol on Ireland/Northern Ireland: Border Controls

Lord Empey Excerpts

Thursday 4th February 2021 Lords Chamber

[Lord True (Con)]

My Lords, I believe that it is highly regrettable, and this point was made by my right honourable friend the Prime Minister yesterday. We should all attach importance to the Good Friday agreement and I hope that the Commission will now give lasting attention to that point.

[Lord Empey (UUP) [V]]

My Lords, I join other colleagues in condemning the intimidation. Northern Ireland has been used shamelessly by the EU and others as a political football during the recent negotiations. However, to what degree are Her Majesty’s Government prepared to look at genuinely at alternatives that can be negotiated with the European Union and with the parties in Northern Ireland, and will those parties be properly consulted about the way forward? I ask this because many feel that they have been ignored.

[Lord True (Con)]

My Lords, my noble friend has made an important point and he is quite right about the involvement of the parties. One of the sad aspects of this has been the bypassing of the parties in Northern Ireland. My right honourable friend set out a detailed set of proposals which are in the public domain, and he has indicated in those that if it is not possible to agree a way forward in the way we have proposed, the UK will consider using all the instruments at its disposal.

Economic Update

Lord Empey Excerpts

Tuesday 12th January 2021 Lords Chamber

[Lord Agnew of Oulton (Con) [V]]

I share the noble Lord’s concern about all these institutions that have been forced to shut down. We all very much look forward to the moment when they can reopen, which is why so much emphasis is being placed on the rapid rollout of the vaccine.

[Lord Empey (UUP) [V]]

My noble friend has referred to the economic difficulties Northern Ireland will face being separated in some way from its principal single market. However, the biggest challenge we face here is that his right honourable friend the Secretary of State announced a few days ago to the world that there was no border in the Irish Sea. This provoked a response of ridicule and anger in equal measure. How can we start a recovery if our representative in the Cabinet cannot even admit the practical situation that businesspeople face every day? Can my noble friend prevail on him at least to acknowledge the realities on the ground?

[Lord Agnew of Oulton (Con) [V]]

My noble friend raises important points. As I mentioned earlier, we are a few days into an enormous change in how trade operates across GB and the EU, and across GB and NI, but I reiterate the Government’s absolute commitment to keep the friction between GB and NI to an absolute minimum. We are doing everything we can to do that. I ask my noble friend to bear with us, because there will be a learning process over the next few weeks.

EU-UK Trade and Cooperation Agreement

Lord Empey Excerpts

Friday 8th January 2021 Lords Chamber

[Lord Empey (UUP) [V]]

My Lords, in his opening remarks, my noble friend the Minister repeated the mantra that has often been used: we now have full political and economic independence and control over our laws, borders, money and trade.

No, we do not. In referring to “we”, my noble friend is not referring to the whole of the United Kingdom because Northern Ireland is still in the European Union and is still subject to laws made by a foreign power. As we speak, EU customs officials are standing in Northern Ireland ports. We cannot even move our own money from one part of the United Kingdom to another unless it is within EU regulations. My noble friend will have to forgive me for being like a gramophone record, but I must tell him that he will hear a lot more of this until there is honesty from Her Majesty’s Government. Having said that, my noble friend did make some attempt at the end of the last debate to be clear.

My second point was referred to in the opening remarks of the noble Lord, Lord Bassam: my noble friend’s right honourable friend the Secretary of State for Northern Ireland insisted earlier this week that there is no Irish Sea border, despite the fact that we are spending £7.25 million a week on measures to compensate businesses for the extra work and that EU officials are standing in ports as we speak. He is holding himself and the Government up not only to ridicule but to anger, as businesspeople face the consequences of this border. Can he impress on his right honourable friend that we must be honest and open? There is a border. Let us try to manage it to the best of our ability; let us not try to pretend it is not there.

House of Lords Appointments Commission

Lord Empey Excerpts

Tuesday 5th January 2021 Lords Chamber

[Lord True (Con)]

My Lords, I am certainly not following the noble Baroness into what was described earlier as an ad hominem comment on any individual. On the Burns report numbers, which I think she refers to, neither this Prime Minister nor the previous one assented to any limit on numbers.

[Lord Empey (UUP) [V]]

Can my noble friend tell the House whether there have been any discussions with the chairman and members of the House of Lords Appointments Commission since the Prime Minister’s latest decision? Does he accept that, as it appears that persons can effectively buy a position in this House—at least, that is the impression given—that brings us back to the days of the rotten boroughs? Does he not realise that all of us suffer, and the reputation of the House suffers, as a consequence?

[Lord True (Con)]

My Lords, I do not agree with my noble friend. The question of the resourcing of political parties is a vexed one, as noble Lords know, and has affected all political parties. I cannot comment on contact between the Prime Minister and HOLAC but I can say that the chairman of HOLAC has written to the Public Accounts Committee on the matter—that is on the record—and the Prime Minister, with full transparency, has placed his own letter on the public record.

European Union (Future Relationship) Bill

Lord Empey Excerpts

3rd reading & 2nd reading & Committee negatived & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords & 3rd reading (Hansard) & 3rd reading (Hansard): House of Lords & Committee negatived (Hansard) & Committee negatived (Hansard): House of Lords
Wednesday 30th December 2020 Lords Chamber

[Lord Empey (UUP) [V]]

My Lords, like other speakers I welcome the fact that there is a deal, albeit that we do not have the opportunity to scrutinise it properly tonight. I also welcome the reference in the Bill to the peace programme, which was negotiated between former EU President Jacques Delors and Northern Ireland MEPs John Hume, Ian Paisley and Jim Nicholson. It has been an enduring programme to help Northern Ireland and the border counties of the Republic and I welcome it.

However, I have to say that one theme stands out for me. In a recent letter to us, the Prime Minister said that the deal,

“takes back control of our laws, borders, money, trade … and ends any role for the European Court.”

He goes on to say:

“We will be a truly independent country, with our sovereign Parliament in full control of the laws that we live by.”


Michael Gove, the Chancellor of the Duchy of Lancaster, said that we are no longer bound by EU law, there is no role for the European Court of Justice, we will have full political and economic independence from 1 January, and our laws will be determined by our own elected politicians.

I am sorry to say it, but all those statements are untrue, because one part of the United Kingdom—Northern Ireland—is left in the European Union. The European Court will still have a role; we will be subject to laws and regulations that will be negotiated and agreed in Brussels, where we have no representation; and we cannot even bring over €10,000 of our own money into Northern Ireland without permission. The idea that these statements are factual is wrong. I wish that somebody on the Government Front Bench would openly admit that we have done a deal that works for Great Britain but, because of certain circumstances, Northern Ireland is not at this stage able to benefit from it. EU officials will stand beside HMRC officers at customs posts at all Northern Ireland ports. One of them being built at Larne is 44,000 square metres, which does not seem to me to be “light touch”, and we will have to treat Great Britain as a third country.

Unfortunately, I want to ask the Minister: what consent was obtained from Northern Ireland for these arrangements? Can he give me that answer, because nobody so far has? I hear some unionists in the other place, and indeed in your Lordships’ House, railing against this deal because of the protocol that was introduced last year. But the very same people facilitated the introduction of that protocol, so they are not in a position to challenge things tonight.

What I want is honesty. We will make the best of what we can, but the union is seriously weakened as a result of this decision, and it is a fact that our laws will be determined by others and not by our sovereign Parliament. That is not taking back control.