(3 years, 7 months ago)
Lords ChamberMy Lords, I begin by declaring my interest as a leaseholder affected by fire safety remediation costs.
This afternoon, I decided to listen to the debate on the Bill in another place to see whether I had been missing something, by just hearing debates here, about the Government’s real reasons for not taking any appropriate action. Instead, I found that the key challenges that have been set out by noble Lords this evening were being made most eloquently by Conservative Back-Benchers. Bob Blackman made the key point that leaseholders have no luxury of time to deal with the demands dropping on their doormats today. Sir Robert Neill made the logical and consequential point that bridging provisions to fund remediation were needed, until the Government had put in place measures to recoup the costs from developers and builders—costs to be met, in the interim, by the Government. As a former Minister, he also made the telling point that the Government would have had time to produce their own amendments, if they had put their mind to it.
The response from the Government was from the right honourable Christopher Pincher, who replied with all the empathy and grace of a Victorian miller faced by workers’ demands to install expensive safety equipment on all the machinery. He also put the noble Lord, Lord Greenhalgh, to shame in his ability to ape Sir Humphrey. Unlike the noble Lord, who at least shows a certain lack of conviction in some of his adjectives, Christopher Pincher had none. In describing this amendment, as we have heard before, he mentioned the uncertainty that it would cause, the lack of clarity and the litigation that would flow, which would be voluminous. He had us almost in tears at the prospect of these terrible consequences.
There was not a word of explanation as to why, given that the Government allegedly want to do what is right, in the seven months since this Bill’s Second Reading they have made no progress whatsoever in bringing forward their own proposals to deal with the issues now. There was not a scintilla of a suggestion, from him, of when there would be certainty for leaseholders. He said that the building safety Bill would be brought forward as quickly as possible and that it would protect leaseholders “as far as possible”. Those two statements are of literally no comfort to somebody facing a bill today. We all know that those phrases “as far as possible” or “as quickly as possible” allow the Government to do whatever they want or not very much at all.
He also had the temerity to say that the Bill should now pass,
“so that people can get on with their lives.”
The one thing certain is that, if this Bill passes unamended, hundreds of thousands of people will not be able to get on with their lives, because overwhelming uncertainty will remain over their financial position and their ability, if they wish to do so, to sell the property in which they live.
The truth is that the Government have shown themselves indifferent to the mental and financial anguish faced by these people today, or else they would have made a meaningful commitment to the timetable for lifting the burden of costs and uncertainty from them. In these circumstances, how can we, in all conscience, pack up our tents now and let the Bill sail into the night? We on these Benches will not do so, and I urge Members across the House to vote for my noble friend’s amendment to bring tenants the relief that they so richly deserve.
My Lords, the noble Lord, Lord Adonis, has also indicated a wish to speak, and I call him now.
(11 years, 8 months ago)
Lords Chamber
To ask Her Majesty’s Government, further to the answer by Lord Newby on 15 October 2012 (HL Deb, col. 1251) and the Written Answer by Lord Sassoon on 6 December 2012 (WA 187), when they plan to announce whether or not corporation tax is to be devolved to the Northern Ireland Assembly.
My Lords, the joint ministerial working group on rebalancing the Northern Ireland economy has concluded its discussions on the potential devolution of corporation tax and reported its findings to the Prime Minister. The Prime Minister is committed to meeting the First Minister and Deputy First Minister on 26 March to discuss these findings.
My Lords, my noble friend will be aware of the deep concern that exists in Northern Ireland over this issue, which is taking so long to bring to a conclusion. I welcome very much the news that he gave us about the forthcoming meeting. Since the Republic of Ireland has a corporation tax rate of 12.5%, it is widely felt that Northern Ireland needs its own low rate to help it to compete for new inward investment. Will my noble friend confirm that there is widespread support among businessmen and employers in the Province for the devolution of corporation tax to the Assembly, and that all the main parties are in favour of it? Have their views been fully taken into account? Finally, I pay tribute to my noble friend and his colleagues for their commitment to rebalancing the Northern Ireland economy by stimulating the growth of the private sector, which the Province needs so badly.
My Lords, I think that account has been taken of views expressed from many quarters. However, the complication, as the noble Lord will be aware, is that if the Northern Ireland Assembly were to cut the rate of corporation tax significantly, its own budget would have to be cut by an equivalent amount.
(12 years, 1 month ago)
Lords Chamber
To ask Her Majesty’s Government whether, following their recent review, they propose to devolve responsibility for corporation tax in Northern Ireland to the Northern Ireland Executive.
My Lords, a joint ministerial working group on rebalancing the Northern Ireland economy is currently examining the issues associated with the potential devolution of corporation tax. This group has made good progress but there remain some crucial areas where differences of opinion between the Northern Ireland Executive and Her Majesty’s Government still exist. The group is due to meet again later this week to continue the discussions.
I thank my noble friend for his Answer. As this prolonged review finally draws to a close, will he confirm that the Government remain wholly committed to rebalancing the Northern Ireland economy in order to enlarge private sector wealth creation? Will he tell us the last issues that still remain to be resolved by the ministerial group? If the Government decide not to transfer corporation tax to the Northern Ireland Executive, what contingency plans do they have to stimulate the private sector in other ways?
My Lords, I can confirm that the Government are committed to rebalancing the Northern Ireland economy. The remaining issues, not surprisingly, are financial, and essentially there are two. The first relates to the initial reduction of the block grant, which follows from any devolution of corporation tax to Northern Ireland. There is something called the Azores criteria, which means that if a devolved Administration take full fiscal responsibility for a tax change, they must face a reduction in their block grant equivalent to the current corporation tax take from firms based in Northern Ireland. The second point is about how you deal with the ongoing adjustment over time to take account of inflation. At this point, it is far too early to say what will happen if the working group does not reach a positive conclusion.