Stormont House Agreement

Lord Hain Excerpts

Wednesday 7th January 2015 Commons Chamber

[Mrs Villiers]

My hon. Friend will find a section in the agreement on that. There is a commitment to draft a protocol on the use of the petition of concern, and to set out more clearly the sorts of issues on which it should be deployed. There are important changes to the way the Executive work, so that Ministers from the smaller parties can get business on to the agenda. There are proposals for reform of the MLA expenses system, and a commitment to a future reduction in the number of MLAs. I am sure that more could be done in terms of institutional change, but the agreement is a real step forward. In particular, I draw the House’s attention to the provision for an official Opposition for the first time in the history of the devolved institutions.

[Mr Peter Hain (Neath) (Lab)]

I congratulate the Secretary of State and all the party leaders on reaching an agreement, not least in view of the Prime Minister’s astonishingly premature exit from the previous summit, and his lack of engagement, which has been greater than that of any Prime Minister for more than 20 years. How can the Secretary of State be sure that this process will not long-grass the key flashpoint issues of parades and flags? On corporation tax, is she aware of Sir David Varney’s 2007 report to the Treasury, which showed that 95% of businesses in Northern Ireland do not pay corporation tax? That is not a silver bullet; it will leave a £300 million hole, or 3%, in the block grant, if there is equalisation with the Republic of Ireland.

[Mrs Villiers]

I assure the right hon. Gentleman that the Prime Minister has been closely engaged with this process, and the visit he made along with the Taoiseach was significant in moving things forward. The financial package that he was able to agree with the Treasury was a crucial part of our progress. This Government have delivered significant achievements on some of the most difficult issues that Northern Ireland faces, and that is in large part due to work done by the Prime Minister.

I have acknowledged that there is more work to be done on the difficult issues of parades and flags, and no one would say for a moment that this agreement is the last word. I will be working, as will my officials and colleagues in government, to find a way forward on those matters, and ensure that they are not long-grassed and that we make real progress. As the right hon. Gentleman pointed out, those issues can cause huge disruption in Northern Ireland and poison the political relationships that are crucial to making the Executive work effectively. He says that corporation tax devolution is not a silver bullet. I agree that on its own it will not transform the Northern Ireland economy, but combined with other economic reform, a focus on skills and competitiveness, and economic reform across the board, it can have a significant and transformative effect. That is why I am disappointed that Labour is not supporting it.