(9 months ago)
Lords ChamberMy Lords, like other noble Lords I particularly welcome the affirmation in the humble Address of the “foundational importance” of the provisions of Article VI, given that we are all aware that these provisions have been partly suspended in Northern Ireland because of the actions of this House and the other place in sanctioning Section 7A of the European Union (Withdrawal) Act 2018.
If we agree the Motion, then we will be duty-bound—if we are not to be two-faced about it—to look to for the first opportunity to amend the withdrawal agreement Act, so that these provisions, which are not merely important but of foundational importance, can be restored to the people of Northern Ireland immediately. As Carla Lockhart, the Member for Upper Bann, observed yesterday in another place, you cannot remove foundations, even temporarily, without placing the superstructure that they uphold in jeopardy.
I will dig a little deeper into this point, drawing on the Minister’s letter to those of us who took part in the recent debate on the statutory instruments that give effect to the deal that occasioned the restoration of Stormont, which has in turn occasioned this humble Address. Having commented on economic ties between Northern Ireland, the rest of the UK and the Republic of Ireland, the Minister says:
“That is why the Command Paper places specific emphasis on ensuring Northern Ireland has full and unfettered access to the UK’s internal market as well as its privileged access to the EU single market”.
That really is the heart of the proposition—that the deal gives Northern Ireland full and unfettered access to the UK’s internal market and privileged access to the Republic.
However, how this can be the case when, first, all the product that has to travel on the red lane—which includes all inputs into Northern Ireland manufacturing coming from the rest of the economy of which Northern Ireland is a part—is subject to a customs border that is more demanding than that experienced by products travelling from Germany, a foreign country, to England, and secondly, when all the product that travels on the so-called UK internal market system is also subject to the fettering of customs and an SPS border?
Lest anyone should contest the fettered access provided by the UK internal market system, I would direct them to the place the fettering is set out: EU regulation 2023/1128, which amends the EU Customs Code to simplify customs border fettering, and EU regulation 2023/1231, which simplifies the SPS border fettering. I do not question the fact that both these provisions simplify the border fettering, but the critical point is that they do not remove it. If you do not comply with the border fettering put in your way by the misnamed UK internal market system, your only other options will be the red lane or not to cross the border.
Moreover—and this is critical—for so long as we submit to the Windsor Framework, we agree that these matters are ultimately for the EU to determine and that the simplification of the border fettering is enjoyed at its pleasure and could be removed if it chooses to do so, defaulting back to the greater fettering of the red lane, as set out expressly in Article 14(5) of EU regulation 2023/1231.
By contrast, if we look at the border between Northern Ireland and the Republic of Ireland, we find no customs or SPS border fettering of any kind. I therefore suggest that the Minister transparently has it the wrong way round. The Government’s arrangements propose full and unfettered access to the Republic of Ireland and, to the extent of the so-called UK internal market system, privileged access to GB, in that while this does not afford us unfettered borderless access to GB, the fettering has been reduced from what would otherwise be the case.
This is a huge problem for unionism because unionists are very clear that our priority is our relationship with England, Scotland and Wales. The South decided to break away from that relationship. That was its decision. We regret it and stand with England, Wales and Scotland in our United Kingdom. In this context, while of course we want the best possible access to the Republic, that has to be subject to the basic unionist imperative—the union—and thus no customs fettering between any constituent part of the union.
The Safeguarding the Union Command Paper has things the other way around, prioritising the relationship with the South and the advent of a border between ourselves and the rest of the United Kingdom. It is a nationalist rather than a unionist solution because it sacrifices the unionist imperative. Of course, this all has to be seen in the context of the fact that the purpose of the border is to uphold the integrity of a different legal regime in Northern Ireland. That is the result of our disenfranchisement in relation to 300 areas of the laws to which we are subject, and the enfranchisement of a foreign Parliament. My noble friend Lord Dodds has already outlined specifics in relation to this issue.
In this respect, it is also important to reflect on the Minister’s assurances in his letter that the shortcomings of the brake are acceptable when seen in the context of the additional democratic consent safeguard—the so-called consent motion. The shortcomings of the brake include, of course, that it creates a second-class citizenship in which, rather than having the right to stand for election to make the laws to which you are subject, you have to make do with the right to stand for election to try to stop laws in 300 areas that have already been made for you by a foreign Parliament; and that it does not apply to all EU-imposed law anyway. We have already heard my noble friend Lord Dodds comment on that too.
That assertion simply does not stand up to scrutiny. The so-called democratic consent motion should really be called the “renouncing democratic consent procedure”, because that is, in effect, what it is. If, on the one hand, we humour the proposition that it constitutes democratic consent and treat it as a vote on all the laws made in the last three or four years, that does not work, both because it would be absurd to engage intelligently with three to four years’ legislation with one vote and because a no vote would not result in any of the legislation falling away. If, on the other hand, we treat it as a vote on all the laws to be made in the next three to four years, that does not work, for the above reasons and because you cannot vote on legislation that does not yet exist.
The practical impact of a yes vote will be for an MLA to agree to renounce the rights of his or her citizens to be represented in the making of the laws to which they are subject in 300 areas for the next four to eight years, depending on the scale of the vote. Rather than the so-called consent motion filling the democratic shortfall of the brake, therefore, it merely compounds it.
I am of course aware—and this was mentioned earlier—that there has been debate in recent weeks around Bushmills whiskey, which I say very gently is completely beside the point, and a lot of tosh, to use an Ulster word. You do not have to be an expert on this at all, and I do not profess to be one, but, as anyone who knows anything about the history of internal markets knows, they have become progressively more integrated across the world over time, especially in the case of the United Kingdom because, as the celebrated German economist Friedrich List pointed out, England and the UK invented the internal market.
People did not wake up one morning and say, “Let’s create an internal market”; it evolved over time. Rather than judging attempts to take it from the perspective of what being in an internal market was like in 1802, we have to judge it from the perspective of what it is like now. The relevant point in looking at these matters today is what Article 6 delivers in the 21st century, which we enjoyed through the foundational provisions of Article 6 until 31 December 2020, which Parliament has now partially suspended, and yet which today this House is urged to tell His Majesty is not merely important but of foundational importance.
I hope that we pass this Motion, but let us be clear: if we do, we will then be duty-bound to restore those Article 6 rights, because no Parliament worth its salt can tell its Head of State that certain provisions are of foundational importance in the context of a Motion that is specifically about a people who have been partly deprived by that same Parliament of those same provisions.
(9 months ago)
Grand CommitteeMy Lords, I am just interested in what the Minister said in relation to postal votes. He remarked that they are sometimes pushed through the door. I am not saying that he implied anything by saying that, but by listening to the way it was said you could nearly think that maybe there was something very improper about that. There has been no alternative up to now other than to push them through the front door—and certainly not through the back door.
As regards postal voting, if I go to the polling station, I must produce ID; there is no need for that at all if I get a postal vote. It strikes me that the potential for where abuse might occur is always with postal voting. I am not saying that it is on a wide scale, but I listened to what the noble Baroness, Lady Ritchie, said, and found myself concurring with much of it.
The other thing I want to emphasise is on voting on the day. It is imperative that there is a police presence inside the polling station. That can be reassuring to the public who come to vote. Some come in trepidation and fear because very often, as the noble Baroness, Lady Ritchie, rightly said, there is quite a hostile atmosphere outside from political activists coming to the polling station who do not always have a great regard for the rule of law. Indeed, they have very little respect for those who may not vote exactly how they guess—because that is all they are doing—they will. That needs to be looked at.
However, I have to say in favour of Northern Ireland that it has led the way on this matter. We have been able to get a fairer system of voting—if that is the proper word. Take remote, isolated areas, not least border areas: a minority community there might not feel very comfortable about coming to vote, hence they resort to postal voting—perhaps “resort” is not the right word either, but they will avail themselves of the postal voting system. That must be protected too. We can turn this thing down so tight that there is no degree of flexibility, because all we are trying to do is protect the genuine voter coming to vote. It is not those who are abusing the system who will feel pushed out here, because they will not; they will still have their ways of doing things, which are often very provocative. Indeed, sometimes quite a bit of agitation is applied.
Elderly voters who apply for a postal vote are vulnerable because activists—for the sake of a better word—will call at their door and tell them, “You’ve got a postal vote; I’ll deal with it”. That is highly suspect and must be dealt with in a way where the postal voter can be assured that their postal vote will go the way they want it to go, not the way the activist who arrives on their doorstep surmising, “Oh, here’s a number of postal votes, we’d better call here”, wants it to go. I have no problem with election workers assisting people, but that is all they should be doing.
(9 months, 2 weeks ago)
Lords ChamberMy Lords, it is a pleasure to follow the noble Lord, Lord Dodds, although he and I disagree on the fundamentals of the Windsor Framework and on the fundamentals of Brexit. I say at the outset that this debate tonight and many other debates that we have are a consequence of Brexit and the decision that was taken in 2016 in relation to the referendum. I declare my interests: I am a member of the Secondary Legislation Scrutiny Committee of your Lordships’ House and of the Windsor Framework Sub-Committee, where we have given in-depth scrutiny to all the various aspects of the protocol and the Windsor Framework.
In fact, we had a very good visit in Belfast some two weeks ago on the whole issue of veterinary medicines. We heard directly—I was going to say “from the horse’s mouth”—from the veterinarians and those who supply the veterinarians about the issues and challenges that they are presented with, because even before Brexit, there was the issue of product rationalisation. These issues about the availability of and accessibility to vaccines, which were constrained by Brexit, need to be addressed.
I welcome the restoration of the political institutions—the Assembly, Executive, North/South Ministerial Council and British-Irish Council. I congratulate those who were involved in those discussions, the Ministers who have been appointed, the members appointed to the committees and my own colleagues, who now form the Opposition under Matthew O’Toole. In the Assembly, the Executive, the North/South Ministerial Council and the British-Irish Council, public representatives from Northern Ireland will have that opportunity to voice their issues and challenges, and to try to find solutions.
However, as a democratic Irish nationalist, I do not like this Command Paper much. It represents a one-sided deal between the UK Government and the DUP, and there is no evidence of intergovernmental partnership with the Irish Government on inclusivity; there is no evidence of that inclusivity, of multi-party talks, of parity of esteem or of rigorous impartiality. Those concepts, which characterised previous agreements, do not exist. While I understand that this was important to get a deal over the line and to ensure the restoration of the political institutions, I say gently to the Minister that it is most important that the UK Government work according to a programme of inclusion and revert to the basis of bipartisanship with the Irish Government, parity of esteem and the principle of consent. They are vital to the resolution of any of the outstanding issues with which we are confronted.
There are those who would say that this represents a departure from the Downing Street declaration of 1993 about the UK Government’s position and the Good Friday agreement, to which the principle of consent was central. I refer and defer to my colleague on the Front Bench, the noble Lord, Lord Murphy, who was a negotiator on behalf of the UK Government on the strand 1 proposals, along with my colleagues in the SDLP, the noble Lord, Lord Empey, and the Ulster Unionists, and other parties.
But, as a nationalist, when I read this document I fear that my colleagues and I do not exist. We need a departure from that to ensure that all of us together can achieve that level of bipartisanship, partnership and parity of esteem. I urge the Government to move towards that.
My noble friend Lord Hain referred to bodies in the Command Paper that will be subject to subsequent legislation—Intertrade UK and the east-west council. How do they fit within the existing structures of the Good Friday agreement? I refer to InterTradeIreland, the British-Irish Council and the British-Irish Intergovernmental Conference. Are they superfluous to what already exists?
The actual regulations are, in many ways, the legislative outworking of the Command Paper, as was already referred to by the noble Lord, Lord Dodds. What will be their impact on the Windsor Framework? Do they represent a departure from or a building on the Windsor Framework that was negotiated with the European Union? What consultation and discussions took place with the European Union on these statutory regulations? Was there any need for such discussions, because there might not have been any material change to the Windsor Framework? What is the impact on the Good Friday agreement and the principle of consent? What is the impact of these and future SIs on the all-island economy and the existing north/south structures? We have, for example, the North/South Ministerial Council and all the north/south implementation bodies that look at cross-border issues such as tourism, the dairy industry, Coca-Cola, food processing and the drinks industry.
As the Secondary Legislation Scrutiny Committee stated in its report on these regulations:
“Given the complexity of the interaction of two regulatory systems in NI”—
accessing the EU single market and being part of the UK internal market—
“we note the importance of the forthcoming guidance to provide clarity to businesses and other stakeholders on how the new arrangements should be applied in practice”.
Can the Minister precisely outline the framework for the publication of that guidance, and what engagement and consultation will take place with your Lordships’ House and the other place, and with the devolved institutions and communities in Northern Ireland, on planned future legislative measures?
Finally, what is the relationship between these regulations and the border target operating model, and what is their impact? I welcome that with these regulations there will be a lessening—I hope, an eradication—of the restrictions to unfettered access between the UK and Northern Ireland. But we must remember that these regulations, the protocol and the Windsor Framework are the result of Brexit. The protocol and the Windsor Framework were clearly seen as mitigating measures to deal with the particular circumstances on the island of Ireland.
I would like to know what impact these regulations will have on the operation of north-south co-operation and trade. I firmly believe that, whatever happens, we have to build on good will, believe in the commonality of interest, and build on friendships and relationships, in order to create a better place for all of the people in Northern Ireland.
My Lords, I will not repeat in detail what has already been said but will briefly underline some of the most important points as I see them, before looking in more detail at some of the specific provisions in the regulations before us today.
The green lane has neither gone nor been replaced. Paragraph 10 of the Windsor Framework Command Paper, published triumphantly by the Prime Minister on 27 February 2023, states that the Windsor Framework
“puts in place a full set of new arrangements, through a new UK internal market system (or green lane) for internal trade”.
The Safeguarding the Union paper, by contrast, commits the Government to:
“Replacing the green lane with a default UK internal market system”.
The green lane and the internal market system are the same thing. You cannot replace something with itself. The Government are doing their best to pull off the sleight of hand of the century, but in my opinion they have failed. The people of Northern Ireland are not fools. These regulations change nothing fundamentally in what were called the red and green lanes until the week before last.
Call them what you like. While we have some innovations from the monitoring committee, Intertrade UK, and the new dispensation from the EU on those rest-of-the-world products that have been through UK customs being allowed to move from one part of the UK, that is GB, to another, that is Northern Ireland, the basics remain unchanged. This is demonstrated most clearly by the fact that the Windsor Framework (UK Internal Market and Unfettered Access) Regulations 2024, before us today, do not repeal or amend the legislation introduced last year to give effect to the green lane UK internal market system legislation.
As such, fundamentally, the legislation before us today leaves the Irish Sea border untouched. Goods that do not travel through the red lane will have to travel through the green lane—aka the UK internal market system—which requires the companies concerned to join the trusted trader scheme. In relation to that scheme, just yesterday the Trader Support Service contacted businesses which bring goods from Britain to Northern Ireland. In that correspondence, the Trader Support Service confirmed that Northern Ireland is treated as EU territory, with Northern Ireland products treated not as UK goods but EU goods. That speaks volumes.
Some of the companies have had this information brought to them. They have an export number and they complete both customs and SPS border paperwork, and are subject to 100% documentary checks, mandated by Regulation 12 of the unamended Windsor Framework (Retail Movement Scheme) Regulations 2023, and 10% to 5% identity checks, mandated by Regulation 13 of the same 2023 Regulations.
This confronts us with the central difficulty with the name of the “UK internal market system” and the title of the Windsor Framework (UK Internal Market and Unfettered Access) Regulations 2024 before us today. What they describe is not unfettered access or an internal market but rather the negation of both. The fact that in order for goods to cross from GB to Northern Ireland one needs an export number and to submit customs and SPS forms, albeit simplified, and be subject to 100% documentary checks and 10% to 5% identity checks, is not unfettered movement within the same internal market. If it was, there would be no need for an export number, and there would be no customs paperwork or customs documentary checks, and no identity checks at a border control post. These border demands give effect to fettered access, as goods move from one internal market to another. If we want to see unfettered access within an internal market, we need to look instead at goods moving from the UK to the Republic of Ireland, across the land border. Here there are no requirements for customs forms, simplified or otherwise, and no customs documentary checks and no identity checks.
(10 months ago)
Lords ChamberMy Lords, before I come to what I want to say today, I want to remind the House that on Saturday evening I attended a memorial service at a local border school to remember its former headmaster. He was abducted by the IRA while across the border having a meal with his wife and was found the next day with a bullet through his head. The memorial also remembered three former pupils of that small border college in Aughnacloy on the Monaghan border.
There were many people there that evening who had served in the security forces, and I looked across their faces and wondered whether I would have been as brave as those men during the Troubles, when more than 3,000 people lost their lives. Some 60% of those deaths are attributable to the Provisional IRA, 30% attributable to loyalists and 10% to the security forces—but, as I have said in this House before, when you drill down into that last figure, it is something like 1%, because the 10% includes incidents where the security forces intercepted terrorists en route to shoot or blow up something.
That was a very solemn occasion and it vividly reminded me of what went on in Northern Ireland during those years. We hope that is behind us. I have three colleagues sitting on these Benches today who have the marks of those years on their bodies. The IRA tried to murder them. Today, those same people are feted as great, courageous people. I am glad that my noble friend Lord Dodds mentioned that we took risks beyond what we should have ever been asked to take to bring us to the situation we have today.
Did we need to be here today discussing this Bill? If only government had listened to us when we said the protocol would not work. But who did they listen to? They listened to the rigorous implementers saying, “Get it done—implement it rigorously and vigorously”, until government then had to acknowledge. We would not be here today had government listened to us. For two years, we pleaded with the Government: “This is not going to do the job. This will not work”. It was only when Sir Jeffrey Donaldson removed the First Minister, and then removed his Ministers, that government started to sit up, listen and take note. I hope and pray that we never have to get to a situation again where government will just turn their heads, look the other way and listen to only one side of the debate.
I commend the three speakers who have spoken before me. They have hit all the right notes and all the issues. But, in looking at the Bill, which changes the date by which the Assembly election must be called, we must be real about why we are here. We are here for one reason and one reason only: the Northern Ireland protocol—now renamed the Windsor Framework; I do not know whether it will eventually come out like that —creates an injustice that is very simple. In 300 areas of law, it subjects the people of Northern Ireland to laws by a foreign parliament.
It thus effects the partial disfranchisement of 1.9 million people. Does anyone in that House care that that is happening? We in Northern Ireland certainly do. We need to see that fixed. Until the end of 2020, it did not matter what part of the United Kingdom you resided in; we could all stand for election to make all the laws to which we were subject. From 1 January 2021, that changed. Today, when UK citizens in England, Wales and Scotland can stand for election to make all the laws to which they are subject, people living in Northern Ireland are afforded the right to stand for election to make only some of the laws to which we are subject. To date, around 700 laws have been imposed on us; that figure will continue to increase as the years go by.
I am not going to debate the Stormont brake, as it has been mentioned here before, but what does it do? It cements this injustice rather than removing it. In the first place, it applies to only some areas of imposed law, and so falls at the first hurdle. In the second instance, even if it can be made to work, which many doubt, it does not restore to the people of Northern Ireland the right to stand for election to make all the laws to which we are subject. It just gives us the demeaning second-class—perhaps third-class—right to stand for election to try to stop laws that have already been made for us by a foreign parliament applying to us. As such, it is a far more humiliating provision than Poynings’ law—noble Lords can look up what that was; I did but I will not go into it—which is now regarded as a matter of shame by many people in GB. At least under Poynings’ law, the Irish Privy Council had the power to initiate and define legislation in the first instance.
In this context, we must be clear that it would not make any difference whether or not the Government removed every check on the green lane; let us remember that that pertains only to consumer goods that have a confirmed address in Northern Ireland. The fundamental injustice that is the protocol would remain. If we are not to find ourselves back here again in a short while with a similar Bill, the Government need to take responsibility for their own citizens and explain to the European Union that our votes are not tradeable—we are not some sort of a commodity—and that the integrity of our political system depends on treating all citizens as ends in ourselves rather than as a means to an end.
The Good Friday/Belfast agreement—whatever term you wish to place on it—ended a 60-year period during which the Republic of Ireland refused to recognise the territorial integrity of the United Kingdom. Its constitution claimed the north, as it would call it; however, as a result of the Belfast agreement, the Republic recognised the territorial integrity of the United Kingdom for the first time and ceased to claim “the north”, in return for the provision of a border poll in the event that polling suggested majority support for the break-up of the UK and Northern Ireland joining the Irish Republic. The agreement also contains cross-border provisions that then became necessary to facilitate a good working relationship in the context of recognising and respecting the reality of the newly recognised border. I emphasise that at no point does the Good Friday agreement say that there can be no customs border.
There is much more that I could say, but, before I sit down, I want to say this. A guarantee was given that Northern Ireland’s constitutional position would not change without a referendum and the consent of the people of Northern Ireland. I stand in your Lordships’ House today and contend that Northern Ireland’s constitutional position has changed, but we have had no opportunity to say anything. So do I now conclude that that guarantee in the Belfast agreement—that there will be a constitutional referendum—has now been pushed aside and is no longer relevant? I am fearful, and I would like the Government, the Opposition and everyone else from any party that sits in this House to declare where they are. Our constitutional position has been changed and we have had no say whatever. I will stop there.
(10 months, 1 week ago)
Lords ChamberI am grateful to the noble Baroness, who has great experience in these affairs as a former Northern Ireland Office Minister. I put on record my praise for public sector workers in Northern Ireland, who do an outstanding job, often in very difficult circumstances. I understand the frustrations that they face at this time. In respect of the noble Baroness’s point about parity, she will be unsurprised to hear that I am a unionist. I want parity across the United Kingdom for public sector workers, but the answer to this is not for the UK Government directly to intervene; we do not have those powers. It is for the Executive, backed by the very generous funding offer that is on the table, to deal with these challenges. On legislation, this morning my right honourable friend said at Northern Ireland Questions in the other place that he will bring forward legislation next week to deal with some of the issues to which the noble Baroness referred. She will forgive me if I do not pre-empt what he is going to announce next week.
My Lords, the Minister has a good working knowledge of Northern Ireland, and I will be surprised if he does not agree with me that the public sector workers should receive their entitlement, bearing in mind that the money has already been made available. What makes the situation more untenable is the fact that Northern Ireland has been funded below the UK Government’s own definition of need, as set out in the Holtham formula—not just since the beginning of the financial year but since the previous financial year, 2022. I am sure he agrees that this is not acceptable, so maybe he can tell the House again why this is happening.
While I am on my feet, I commend the unions for their responsible approach to all this. They have not fallen into the trap that some of my colleagues in this House have today, in that they blame a political party for it. That is not what they are saying. On this threat of reducing the MLAs’ money, I never heard that said once in the three years that Sinn Féin held everybody to ransom in Northern Ireland.
I am grateful to the noble Lord. I would like to think that, after 35 years of involvement, I have a slightly better than working knowledge of some of these matters. In respect of funding, the noble Lord repeated a point that he has made a number of times before in your Lordships’ House. I remind him that as part of the financial package on the table there is an updated Barnett formula, which is worth an estimated £785 million over five years. On need, he will also be aware that the Northern Ireland Fiscal Council stated in May 2023:
“Based on our updated calculation, the relative level of public spending in NI per head of population … is … broadly in line with … need”.
(1 year, 2 months ago)
Lords ChamberMy Lords, things do not seem to have changed or moved since we debated my amendment to the Finance Bill in May. For reasons that I hope to explain, they have since deteriorated. In order to understand the implications of the Bill before us today, we need to have regard to two key co-ordinates. The first is the UK Government’s definition of need. This is provided by the Holtham formula—an adjustment to the Barnett formula—which the UK Government embraced between 2012 and 2016. It is important to remember that the purpose of adjusting the Barnett formula through the Holtham formula was not to make sure that each part of the United Kingdom received identical funding per head of the population, which is arbitrary and meaningless. Rather, it was to ensure that each part of the United Kingdom receives the funding per head that it needs, mindful of the challenges it faces in order that we all enjoy comparable public services.
This provision of comparable public services underpins the reality of our common community. We recognise that, to be part of a common community underpinned by a common citizenship, we must have the same effective rights, including in relation to public services. In this context, it is no more appropriate to suggest that all parts of the United Kingdom receive identical levels of funding, regardless of need, than it would be to say that some parts of the United Kingdom are worthy of better public services than others. The common body politic of our union cannot make these distinctions. The political community that we enjoy is predicated on a common citizenship wherein the equal value of all citizens is testified to by the provision of comparable public services.
In the words of the Holtham Commission, its purpose was to
“set out our proposal for aligning relative funding with relative needs in a way which we believe is workable, simple to operate and fair to all parts of the UK”.
Crucially, although it was commissioned by the Welsh Government, it was to generate not a Wales needs-based formula but a UK needs-based formula. We can all be grateful to the Welsh Government for performing an important task for every part of the United Kingdom.
The result has been a sophisticated formula that demonstrates that spending per head in Wales must be £115 for every £100 spent in England for there to be comparable service provision. Spending per head in Scotland must be £105 for every £100 spent in England for there to be comparable service provision. For there to be comparable service provision in Northern Ireland, spending per head must be £121 for every £100 spent in England. The UK Government formally adopted this definition of need in 2012. In that year, it indicated a willingness to intervene to align spending in Wales to the definition of the Holtham formula because the Barnett squeeze was such that it would inevitably happen.
In 2016, this commitment was brought into more direct effect through the agreement between the Welsh Government and the United Kingdom Government on the former’s fiscal framework. This consisted of two elements. First, a 5% budget uplift was applied for the purpose of slowing down the Barnett squeeze and thus the point in time when spending per head would reach need. Secondly, a Holtham floor was set at the level of need to ensure that, notwithstanding what the Barnett squeeze might otherwise have done, spend could not fall below need as defined by the Holtham formula. This has been in place ever since. Because spend in Wales has not fallen below need, it has benefited from millions of additional pounds of taxpayers’ money to slow down the Barnett squeeze. Consequently, the level of spend in Wales remains slightly above need.
Although the Holtham formula has not changed, it became necessary to recalculate the Northern Ireland definition of need using that formula because the Holtham calculations were made before the devolution of justice. Earlier this year, the Northern Ireland Fiscal Council used the Holtham formula to update the Northern Ireland figure so that it was fully cognisant of the breadth of current devolution. The outcome of this project was the publication on 2 May of a seminal Fiscal Council document demonstrating that the current Northern Ireland definition of need is £124. This is our first co-ordinate.
The second co-ordinate is the UK Government’s definition of spend for the current spending review period, set out in the Treasury’s block grant transparency document. When aspects of this document are updated, as in July this year, the basic definition of relative need between Wales, England, Scotland and Northern Ireland is calculated only by the block grant transparency document at the start of each spending review period.
This is because the task of coming up with fair, comparable figures, mindful of administrative and other difficulties within the UK, is resource-intensive. As such, the block grant transparency measure of spend provides the only robust comparable measure of spend across England, Wales, Scotland and Northern Ireland for the three-year spending review period. It is on this basis that decisions are made for the period about what needs to happen in Wales to ensure that its funding does not fall below the definition of need provided by the Holtham formula.
The Treasury defines relative spend between England, Wales, Scotland and Northern Ireland as relative funding per head averaged over the SR21 period 2022-23 to 2024-25. This is found in table 4C of Block Grant Transparency: December 2021. In dealing with the current spending review period of 2022 to 2025 in Wales, decisions protecting the Holtham floor definition of need and the 5% uplift are made for the spending review period on the basis of this block grant transparency average measure of relative spend for the three years—and not any other definition.
This does not mean that other figures will not emerge but, crucially, to be treated consistently and fairly, decisions about requisite interventions in Northern Ireland with respect to protecting spending to the Holtham definition of need—and an uplift in the event that our spend was still slightly above need—must be based on the definition of spend in Block Grant Transparency: December 2021. In Wales, the definition of spend in the document for the spending review period is £120, while in Northern Ireland it is £121. That means that in Wales, spending for the spending review period has been deemed to be £5 above need, so it has not been necessary to apply a spending floor at the Wales level of need of £115, but Wales benefits throughout from the provision of the 5% uplift, which slows down the Barnett squeeze and involves spending taxpayers’ money to keep spending in Wales above need.
By contrast, Northern Ireland’s situation has deteriorated such that we have missed out on uplift because spending has not fallen to need but to £3 below need. This is a hugely disruptive change, visited on us very suddenly since 1 April 2022. It means that, in this spending review period, in 2022-23 we were underfunded by £322 million. In this year, 2023-24, we are underfunded by £341 million and in 2024-25, we will be underfunded by £458 million. This injustice is greatly compounded by our being required to pay back £297 million across this and the next financial year.
When we confront the scale of the underfunding, the fact that Northern Ireland is currently in the midst of an acute funding crisis—and there is a need for funding cuts in the round—is no surprise at all. It is affecting all aspects of life, from SEN funding to childcare provision, which a recent report by the campaign group Melted Parents NI shows is more expensive in Northern Ireland than any other part of the United Kingdom.
I thank the Minister for bringing this budget to your Lordships’ House. I wish it would go to Stormont. Maybe one day things will dictate that it goes that way. Until then, this is the only way and the Government have a responsibility. When things crank up, the Government have to do some heavy lifting. They are refusing to do it at this time but I thank the Minister for this report today.
(1 year, 5 months ago)
Grand CommitteeMy Lords, I thank the Minister for introducing these regulations. Of course, the Secretary of State is not only empowered to make these regulations but legally obliged to do so. With the regulations, the Secretary of State is making a statutory duty to implement recommendation 86(d) of the report of the Committee on the Elimination of Discrimination against Women. As a result, as the Minister has told us, age-appropriate, comprehensive and scientifically accurate education on sex and reproductive health and rights, covering the prevention of early pregnancy and access to abortion, will become a compulsory component of the curriculum for adolescents in Northern Ireland.
The Labour Party fully supports these measures. On these Benches, we believe that they are a critical step in ensuring that all parts of the United Kingdom meet their human rights obligations to children in this area. All adolescents deserve age-appropriate, comprehensive and scientifically accurate relationship and sex education. For too long, relationship and sex education has been unavailable to adolescents in Northern Ireland. In May 2019, Sir John Gillen’s independent review into how the criminal justice system in Northern Ireland deals with serious sexual offence cases made a series of recommendations, including the need to include in the school curriculum for RSE matters such as consent, personal space, boundaries, appropriate behaviour, relationships and sexuality. In April this year, an evaluation by Northern Ireland’s Education and Training Inspectorate found that 44% of schools reported that they were delivering the topic of consent
“to a small extent or not at all”.
Earlier this month, the Northern Ireland Human Rights Commission, as the Minister told us, published a report into its investigations of relationship and sexuality education in post-primary schools, and found that the curriculum on relationship and sexuality education does not meet human rights standards. According to the commission, most schools are not providing
“age appropriate, comprehensive, scientifically accurate education”
on access to abortion services. The investigation also found that some schools actively contribute to the shame and stigma surrounding unplanned pregnancy and abortion by making statements such as abortion is not a means of contraception and those who knowingly engage in casual sex must bear the consequences of their actions. It revealed that some schools are teaching children that homosexuality is wrong.
In England, Scotland and Wales, compulsory RSE that embeds reproductive rights and choices within the curriculum, implementing the CEDAW recommendations, is already in place. The Labour Party welcomes the fact that today’s regulations will help to ensure that the curriculum for children in Northern Ireland meets that standard too. The Northern Ireland Human Rights Commission has welcomed the new regulations and emphasised that implementation and monitoring will be critical. Schools should support and develop their capacity to deliver RSE, and the commission and other expert independent organisations have offered their expertise to help with that.
I have read with care the Secondary Legislation Scrutiny Committee’s report on these regulations and the debate that took place in the Commons yesterday. I of course agree with my honourable friend Peter Kyle and the Minister in that debate about the need to move forward on this matter. However, there are a few matters from this report that particularly concern us. The first is the question of consultation—or lack of it, as the committee says at paragraphs 54 to 56. The Minister needs to clarify that and address it. The second is the use of outside contractors to deliver RSE. How will the Department of Education in Northern Ireland ensure that the delivery of RSE meets the updated curriculum that these regulations set in motion? Thirdly, will the Northern Ireland Office liaise with the Department of Education to provide detailed information about implementation, which the report mentions at paragraph 43? Finally, is the Minister assured that the Department of Education will have the necessary regulations in place regarding parents withdrawing their children from RSE?
With those questions, which I am sure the Minister will be happy to address, we offer him our support.
My Lords, I am watching the annunciator because I am due to speak on amendments in the Chamber. I know that we are expecting a vote very shortly, which will probably mean the suspension of the Committee, but noble Lords will understand if I leave and cannot participate in the whole debate, which I want to do.
These regulations are profoundly controversial in terms of their content and the procedure that attended their development. In the first instance, they suffer from a similar legitimacy deficit to that attending the abortion regulations 2020 on account of the fact that they are made by the same parent legislation, Section 9 of the 2019 Executive formation Act. At this stage, lest I forget, I want to challenge something that the Minister said. It was not so much that what he said was inaccurate, but that it was not the whole story. He said that 78% of MLAs voted for this. Yes, but it was 78% of 30; there are 90 MLAs and only 30 voted. That was not said, but it needs to be. However, for reasons that I shall explain, the legitimacy deficit attending these regulations is significantly more extensive.
Section 9 was the result of a vote in another place on 19 July 2019 the impact of which pertains exclusively to Northern Ireland, in a context when every single Northern Ireland Member of Parliament who took their seat in the democratically elected House voted against this provision. It becomes quite disturbing. We are always told by others who maybe have never been to Northern Ireland, or are very rarely there, “We know better than you lot that live there”. In other words, a provision that pertained only to Northern Ireland was imposed on Northern Ireland over the heads of its elected representatives.
I interrupt the noble Lord just to say that I spent the weekend before last in Ireland, just over the border, and in Enniskillen with my family. We had a lovely time.
I am glad that the noble Baroness enjoyed Northern Ireland. Most people who come to Northern Ireland enjoy it because there is so much to do and see. Right now, we can even provide the weather, which we cannot always. I am delighted to hear that she made a visit and I hope she will come back some other time.
Although there is nothing technically wrong with using the votes of other parts of our union to impose changes on specific parts of it in violation of the wishes of its elected representatives, every time that happens there is a clear legitimacy deficit. That is why apologies were subsequently issued for the flooding of Capel Celyn in Wales and the imposition of the poll tax a year early in Scotland.
However, in the case of Section 9, the legitimacy deficit is more extensive, because the Executive formation Bill had been subject to accelerated procedure on the basis that it was about just one issue, and it was widely reported at the time that the clerks in another place advised that the amendment that resulted in Section 9 was not in scope. This meant not only that profoundly controversial legal changes were imposed on Northern Ireland but that we were not even afforded the dignity of a full debate.
Thus, if you live in Northern Ireland today, you are looking not only at regulations resting on current legislation imposed over your head but at regulations preceded by no primary legislation debate at all in terms of the regulation-making power as it applied to education, relating to paragraph 86(d). The Secretary of State has not even bothered to consult on that, but I suppose that is the way things are now.
That failure to consult is particularly problematic because the NIO—Northern Ireland Office—is subject not only to the general obligation to consult on drawing up new legislation but to the specific human rights obligation flowing from Article 2 of the first protocol of the ECHR. It states:
“In the exercise of any functions which it assumes in relation to education and to teaching, the State shall respect the right of parents to ensure such education and teaching in conformity with their own religious and philosophical convictions”.
The failure to consult in this context is particularly egregious given that, when the abortion regulations were challenged in court on the grounds that there had been no consultation in relation to paragraphs 86(d) and 86(f), the court pointed out that the specific regulations it was considering had been subject to prior Northern Ireland Office consultation before the regulations were published; and that no regulations had been published at that time in relation to paragraphs 86(d) and 86(f). However, it said that, if the Secretary of State were to issue regulations to give effect to those paragraphs, he should consult. In paragraph 168 of its judgment, it stated:
“The court notes that the consultation which did take place in the context of the Regulations was limited to the issue of abortion but did not deal specifically with the issue of education on sexual and reproductive health or a strategy to combat gender based stereotypes as set out in paras 86(d) and (f) of the CEDAW Report. However, these paras are not referred to in the 2020 Regulations nor are they contained in the 2021 Directions under challenge. In the event that Regulations or Directions are made in the future to deal with those issues then there will be an opportunity for the Secretary of State to carry out a consultation”.
The Secondary Legislation Scrutiny Committee has drawn the House’s special attention to these regulations because of the absence of prior consultation on them. In its report, it states:
“In response to our questions, NIO also said that a consultation was not necessary because each school must have a written policy on how it will deliver Relationship and Sexuality Education, and that this policy should be subject to consultation with parents”.
However, that misses the vital point: the regulations before us, with the amendments that they make to legislation, will have already been made prior to any consultation on guidance that the Department for Education might hold or any consultation that a school might conduct in its place.
The SLSC rightly observes:
“It is striking that full public consultations were carried out when comparable regulations were introduced in England, and when similarly controversial regulations on abortion were introduced in NI. NIO has not offered any convincing reasons why these Regulations should be treated differently. The lack of a consultation was also the criticism most frequently mentioned in the submissions, including from teachers, parents and school governors as well as representative organisations. Other points advanced in submissions included … The Council for Public Affairs of the Presbyterian Church in Ireland argued that school governing bodies and principals should have been consulted because they will be the organisations charged with implementing the policy … The Transferor Representatives’ Council suggested that the current lack of a NI Assembly made it ‘unusual’ that the Secretary of State would act without engaging in consultation”.
Indeed, it seems to me that the Secondary Legislation Scrutiny Committee became something of a safety valve in the absence of any consultation on the wording of the regulations because, very unusually, the submissions to the committee ran to some 55 pages of text, which has now been published on Parliament’s website. Of course, that is no substitute for the consultation that should have taken place on the wording of the regulations and, in particular, on the decision to give them a name with far-reaching implications that are not referenced anywhere in the parent legislation or in paragraph 86(d) of the CEDAW report because the SLSC is not involved in drafting the regulations. Mindful of all these considerations, the SLSC states:
“These Regulations are drawn to the special attention of the House on the ground that there appear to be inadequacies in the consultation process which relates to the instrument”.
The conduct of the Northern Ireland Office has been problematic, not only because of its failure to respect due process in the drafting of the regulations but because of its failure to facilitate full, considered parliamentary scrutiny of the regulations. As the SLSC points out,
“the Regulations were brought into effect on 6 June 2023, the same day that they were laid.”
Its report states:
“We asked NIO why it had chosen to breach the convention that at least 21 days should be allowed between laying an instrument and bringing it into effect. NIO said that this was ‘to allow the DE as much time as possible to progress work on the guidance in preparation for delivery of the education’”.
(1 year, 5 months ago)
Lords ChamberMy Lords, today, the Day of Reflection, was proposed many years ago by Healing Through Remembering. It is a very symbolic day, as noble Lords have noted, for families of victims, and we tonight, as they remember the dead and support the injured, are debating a Bill which takes away the rights they have under the law. They do not want the Bill; it is important to say that.
I thank the Minister for the amendments he has tabled that reflect my earlier comments during the passage of the Bill. On behalf of the noble Lord, Lord Hogan-Howe, who cannot be here today, I thank him for the meetings he held with the noble Lord and with me.
It may seem desirable—admirable, indeed—that the Minister has introduced a requirement in government Amendment 2 that the principal objective of the ICRIR in exercising its functions is to promote reconciliation. However, it seems to me that there may be a contradiction between the promotion of reconciliation and the conduct of an investigation. How does one conduct an independent, impartial investigation with the principal objective of promoting reconciliation? Does that objective detract from the duty to investigate fearlessly, regardless of what the outcome of an investigation may be, so that people can be assured that the Government act in accordance with their obligations under the rule of law?
Investigation can lead to the exposure of matters that were hitherto unknown or unconfirmed but which may demonstrate, for example, that a named individual or individuals were responsible for a particular atrocity, and that can cause massive concern, particularly in circumstances in which terrorist perpetrators regard their activities as justified by circumstances, or where state actors did not take action to prevent a planned murder of which they were aware. It may certainly lead to hostility and distrust, rather than promoting reconciliation. I do not know what the answer to this is, but I think there is a conflict there, or a dissonance.
I welcome the two government Amendments 85 and 86, which provide for victim statements and the publication of those statements. The Government have yet to provide, as the NIHRC has stated, that victims or family members are informed when an individual has applied for immunity. Victims or family members are not currently expressly required to be informed of the outcome of the immunity request. There is no express requirement for the independent commission to provide reasons why it is or is not granting immunity, and there is no proposed option for an individual requesting immunity, or an interested person, to appeal a decision on immunity made by the ICRIR. In short, the Bill still does not comply, in this context, with the requirements of the victims’ rights directive in its provision for victims.
My Lords, the Minister was at pains to point out that Amendment 2 is all about reconciliation, yet no matter how much you search through the Bill, there is no definition of reconciliation in it. I am having difficulty, as are my colleagues, in being reconciled to the Bill and to have reconciliation with it, but I hope the Minister will—and I am sure he will—when he is winding up on Clause 2, give his definition of reconciliation. It seems to me that reconciliation means different things to different people. I am sure he will have observed that all the victims groups that have spoken about the Bill have not spoken in favour of it; therefore, I think he has a job to do. However, as my noble friend Lord Weir has said, we will not be dividing the House on this, but I earnestly ask the Minister why there is no definition of reconciliation in the Bill.
My Lords, I know my noble friend Lord Weir touched on this, but Amendment 3 requires the ICRIR to
“have regard to the general interests of persons affected by Troubles-related deaths and serious injuries”.
I ask the Minister to clarify: have the Government failed conclusively to rule out perpetrators, including those who died or were injured at their own hand, from the scope of this duty which is now being placed upon the ICRIR? It would certainly be wrong that those who have been perpetrators and died or were injured at their own hand should be placed on the same level as those who are innocent victims.
My Lords, I will not detain the House much on this issue and Amendment 63, to which my name is attached, because I am really here to talk about Amendment 31, the Kenova amendment, which we will come to later on. I just want to remind noble Lords of the shocking effects of letters of comfort. We are about to repeat that same mistake if we continue with this process and do not do something to get Amendment 63 through the House on Monday.
My Lords, I will speak to Amendment 61A, tabled by me and my noble friends Lord Dodds and Lord Weir. My noble friend Lord Dodds has already spoken very eloquently on this, but I will add some comments.
Amendment 61A would require
“an individual to be disengaged from activity which would be reasonably regarded as precluding reconciliation in order to be eligible for immunity from prosecution”.
Earlier, I tried to push the Minister a little on this, because although reconciliation is laced through the Bill, its definition is anything but clear. I still feel strongly that the definition should be in the Bill. However, we are where we are.
Admittedly, the Government have brought forward new proposals allowing immunity to be revoked in incidents involving glorification of terror, as my noble friend Lord Dodds said. It is very disturbing when one watches our television screens or reads a newspaper to see leading, prominent politicians elegising the past—murder—and commemorating those who were intercepted by the security forces while carrying out murder, or who were blown up by their own bomb. In an age of reconciliation, how can this continue? Yet those same people tell us that they will be a First Minister for everybody.
That is the strangest way of setting out. If that is their idea of reconciliation, then I no longer understand plain English. Surely it is time for the Government to take a long hard look at this situation. As has already been said by others, this is not good legislation. It is bad legislation, and it has no support back in Northern Ireland from anyone who has spoken publicly about it. I have not read of support for this legislation, yet the Government are intent on pushing on and pushing it through. Those of us who have these great concerns are therefore making an honest attempt to make this less bad. That might not be good grammar, but it is the best way that I can say it.
We want the Government to stop and think. Admittedly, they brought forward new proposals allowing immunity to be revoked for the glorification of terror, but this does not go far enough in capturing activities that do not necessarily constitute offending, but which will cause deep harm to victims, survivors and their families. If this Bill is about reconciliation, it must take into account the hurt caused not only 30 years ago but right up to recent times. Some tell us that we have every right to remember our dead, and maybe that is true, but we have absolutely no moral right to glorify those who carried out these evil deeds of terror. “Reconciliation” is in the title of the Bill, but that seems to be as far as the Government are willing to go.
The ICRIR will be statutorily required to oversee an amnesty process which runs contrary to reconciliation and which is opposed almost unilaterally by victims. Any sense that the ICRIR can deliver on its primary objective is diminished from the word go. It should be made clear in Clause 18 that one condition for immunity, applied not just at the point of application but thereafter, is that an individual is not engaged in activity which can reasonably be regarded as precluding reconciliation by glorifying terror and violence, eroding support for the rule of the law or traumatising victims yet again.
(1 year, 6 months ago)
Lords ChamberMy Lords, Amendment 1 is in my name and that of my noble friend Lord Dodds of Duncairn.
Clause 2 of the Bill is concerned with:
“Advice and information on options for raising public revenue”.
My amendment requires that the advice should be expressly required to cover the Northern Ireland Fiscal Council report, Updated Estimate of the Relative Need for Public Spending in Northern Ireland, published on 2 May this year, and the precedent arising from the December 2016 agreement between the Welsh Government and the United Kingdom Government on the Welsh Government’s fiscal framework.
Some might suggest that all relevant things can and should be taken into account and it is not necessary to specify these two documents. However, they are of such central importance to the situation in which Northern Ireland finds itself that it would be a dereliction of duty not to put them front and centre of advice and information on options for raising public finance. I will consider both, starting with the agreement with the Welsh Government.
In 2007, the new Welsh Government’s programme for government identified the need to address the problems relating to the Barnett squeeze on the funding available for services for UK citizens living in Wales. To understand this, it is important to remember that before 1979, when the Barnett formula was introduced, the union was treated as a unit and funding allocations were made within that unit on a basis that was alive to need. The reason for considering a change in the funding formula at that time was devolution, which the then Government hoped would be delivered by referendum that year.
The initial proposal was that the funding formula should be needs-based. Treating England as 100, the Treasury claimed that on the basis of need, Northern Ireland should be rated at 131, Scotland at 116 and Wales at 109. However, a decision was made to delay the introduction of this new system and to use instead a simple interim model that allocated monies to Scotland, Wales and Northern Ireland based on their relative populations as a proportion of that of England. This temporary formula came to be known as the Barnett formula. Here we are 44 years later, and it remains in place, notwithstanding the 2009 report of the House of Lords Select Committee on the Barnett Formula, which called for its replacement with a needs-based formula, and a number of robust exhortations to the same end from your Lordships’ Constitution Committee.
When the Barnett formula was first applied, it was to a pre-existing level of spend that had been cognisant of need and thus with more money per head going to Northern Ireland, Scotland and Wales than to England. However, the challenge remains that all subsequent increments in funding from the introduction of the Barnett formula have not been based on need in Wales, Scotland and Northern Ireland, but have simply been the appropriate and proportionate fair share of what had been spent in England. Mindful of the populations of Wales, Scotland and Northern Ireland, that means that although incomes keep increasing, funding does not increase as much as it would if monies were allocated from the centre on the basis of need—as if the UK operated on a UK-wide rather than just an England-wide notion of need.
The spending differential between Northern Ireland, Scotland and Wales, on the one hand, and England, on the other, has reduced, and in the absence of correction, there would ultimately come a time of convergence, when spend per head in Wales, Scotland and Northern Ireland would be far below need. This downward pressure towards convergence is called the “Barnett squeeze”.
My Lords, I thank everyone who has contributed to the debate. If there is one striking note, it is that I did not hear anyone say they oppose what we are trying to do, so I will take that as a positive and welcome it. Some, of course, have said, “If we had an Executive” or if we had this or that, but I have always found in life that you are better off moving from where you are, rather than where you would like to be. That is the only way we are going to move forward. If, one day, there is an Executive—I can say with some degree of confidence that it is not going to be tomorrow—they will no doubt deal with those issues.
I was struck by one thing the Minister said when he summed up. He said that we extended additional powers for borrowing some £300 million. In my experience, any time I borrowed money I always had to repay it and sometimes, the pain of repaying it was nearly as great as the pain of asking for it. Incidentally, I never had to borrow £300 million; that just would not have happened. The Members who spoke highlighted different issues; for example, that our health service is where it is, and that we have monumental waiting lists. However, we had those when we had the Executive. There are three of us here—the noble Baroness, Lady Foster, my noble friend Lord Dodds and I—who have at different times served in that Executive. I nearly forgot—how could I?—the noble Baroness, Lady Ritchie, also served in it. We are not antagonistic to devolution. We know there are merits in it but, for goodness’ sake, can those who see our salvation entirely in a restored Executive please take on board that that will not happen at present because we do not have a level playing field? When we get to that stage, we will all be enthusiastic and break down the gates of Stormont to get in, but that is not where we are, so I ask noble Lords to take cognisance of that.
What happens when devolution is not functioning? Is it not the responsibility of government to step in and accept responsibility, as a government, and keep things moving forward? That, surely, has to be right. I do not doubt for a moment the Minister’s sincerity— no one has—but we say to the Government, “You have responsibility; let’s get on with it.” The noble Lord, Lord Murphy, quickly corrected himself and reminded us that none of us here is elected, but the other place is elected. Is that not their responsibility, or do they just throw up their hands and say, “Oh well, we can’t do anything here”? They cannot do that. Let no one underestimate the difficulties there will always be in keeping devolution afloat. Those will always be there, but the Government have a responsibility to ensure that when things break down back home, they do not shirk their responsibility to do some of the heavy lifting here to encourage the people of Northern Ireland and ensure that they do not suffer.
My Lords, I will stop there. I beg leave to withdraw my amendment, which was intended more as a probing amendment.
(1 year, 6 months ago)
Lords ChamberMy Lords, we certainly agree with the Minister when he says that it is regrettable that the Northern Ireland Assembly is not up and operating—but we all know perfectly well why. My party gave much notice—in fact, I think that we gave 13 months’ notice—in this House and elsewhere that the Northern Ireland Assembly and Executive were on life support. Now the whole thing has collapsed due to these red lanes, green lanes and border controls. We are no longer strictly a part of the United Kingdom in the same sense as Scotland and Wales.
But the main point I want to make today pertains to Clause 2 in relation to advice and information on options for raising public revenue. The Government are right to be alive to the fact that Northern Ireland needs more public revenue, but the implication of this is that the way forward is through local means. That, however, is to distract attention from the key point at issue. On 2 May, the Northern Ireland Fiscal Council published a report that uses the Holtham formula to calculate what needs to be spent in Northern Ireland in order for needs to be met on the same basis as they are in England. Crucially, the Holtham formula for defining need per head of population is not a random assertion but the result of a government commission that the UK Government have already accepted for Wales, Scotland and Northern Ireland.
Using the formula, the Fiscal Council demonstrated that in order for needs to be met in Northern Ireland on the same basis as England, Northern Ireland needs to receive £124 per head. Crucially, however, the Treasury block grant transparency document shows that spending per head in Northern Ireland for the spending review period of 2022 to 2025 is £121 per head. It is, therefore, no surprise that Northern Ireland is currently in the midst of a very serious funding crisis, with Stormont departments having to make cuts right, left and centre. Today, Northern Ireland is the only part of the UK to be in receipt of below-needs block grant funding. Northern Ireland thus finds itself in a similar position to Wales in 2009-10, but, rather than just being £1 below need for one year, Northern Ireland is £3 below, and not just for this financial year but for the last financial year and for the next financial year.
If we extrapolate for the three-year funding review period, the Fiscal Council report demonstrates that we are currently underfunded to the tune of just over £1.2 billion. The critical point in all this is that after Wales went below need for funding in 2009-10, the UK Government responded in a way that established three critical precedents. First, they accepted the Holtham formula as a definition of need. Secondly, they introduced a 5% transitional needs adjustment for Wales, whose purpose it is to slow down the Barnett squeeze up until reaching the Holtham formula definition of need. This applies when funding per head has not fallen below need. Thirdly, it introduced a Barnett floor for Wales on the basis of the Holtham formula definition of need to introduce a complete needs adjustment at the point where funding per head reaches need and threatens to go below.
In making that arrangement, the UK Government have agreed that it would be wrong for funding per head ever to fall below need, and made provision to prevent this ever happening again. The Government are now duty bound to afford the people of Northern Ireland the same courtesy. As we have already fallen below need, this should result in a full needs adjustment backdated to the beginning of the spending review period. In recent weeks, the Government have sought to press the DUP back into government in various ways. I ask that they reflect very carefully about the implications of trying to use the current funding crisis as a means of doing so. The reason we had to withdraw from Stormont is that we were not prepared to settle for, and thus effectively cement in, a second-class citizenship in which we no longer have the right to stand for election to make the laws to which we are subject and in which we are forced to be presented to the rest of our home economy as if we are a foreign country. I do not think it would reflect well on the Government to do that and I do not think it would be wise.
Finally, in the normal sense of events there would be an opportunity to ask the Minister for a meeting between Committee and Report to discuss the need for a comparable Barnett floor provision for Northern Ireland to that which exists in Wales. However, there will be no time between Committee and Report, as all remaining stages are to be taken on one day, so I will take this opportunity of asking for such a meeting to discuss this ahead of the remaining stages.