Political Process in Northern Ireland

Sammy Wilson Excerpts

Tuesday 4th June 2019 Commons Chamber

[Karen Bradley]

I am well aware of the decisions that need to be taken. My focus is on restoring government in Northern Ireland so that decisions can be taken by those elected by the people of Northern Ireland.

[Sammy Wilson (East Antrim) (DUP)]

The Secretary of State, when questioned by the press, has talked of the need not to jeopardise the talks, but does she accept that, by refusing to answer questions and giving that role to the Foreign Minister of the Irish Republic, she is allowing the impression to be given that these talks are driven by the Irish Republic and are not in the hands of the UK Government? That is in breach of the three-stranded approach there should be when it comes to these talks.

[Karen Bradley]

It is my view that the more speculation there is in the press and elsewhere about these matters, the less chance we have of restoring devolved government. I am not prepared to do anything that jeopardises the possibility of restoring government in Northern Ireland. The approach that other politicians take to dealing with the press is a matter for them. I have the utmost respect for the press—when I was Secretary of State for Digital, Culture, Media and Sport, I was an absolute advocate of press freedom—and the press are welcome to scrutinise and question me at length, as they regularly do. But on these matters, I am not prepared to do anything that makes it harder for the right hon. Gentleman’s party and others to do what I know they want to do, which is to go back into government.

Northern Ireland Executive

Sammy Wilson Excerpts

Tuesday 23rd April 2019 Commons Chamber

[Stephen Pound (Ealing North) (Lab)]

I think it is appropriate, although not necessarily relevant, to mention the sombre, serious and sober debate on the murder of Lyra McKee that we had earlier. The statements that we heard from the Northern Ireland Members present will resonate long in this House and far beyond it. It makes it all the more important, when we are dealing with business like this—in the absence of an Executive and an Assembly—that we do not allow a vacuum for the gangsters and the men and women of violence to succeed and to flourish. I profoundly hope that what we heard tonight will be a tipping point and that there is a possibility of a return to normalcy, which would be epitomised by this sort of legislation.

This is an extremely unusual piece of legislation in that it has already been made. It comes before us, as the Minister said, small and perfectly formed, but it was perfectly formed last month. It is what we call an affirmative statutory instrument. I am sure that some people lie awake at night dreaming of unusual affirmative statutory instruments, but I do not count myself among those people. This is a piece—[Interruption.] Mr Deputy Speaker, I am being heckled from the Back Benches, but what I do at night is entirely my own business.

One of the first questions I asked was, “Why was it expedient for this statutory instrument to be made without the prior approval of Parliament?” The answer is quite simply that the Secretary of State for Northern Ireland was deep in negotiations with the various parties in the Northern Ireland, and it is a tragedy that we have to consider this piece of legislation now after those negotiations have taken place.

The explanatory memorandum refers to negotiations that have taken place with all the Northern Ireland political parties, and I am interested to know whether any negative comments or suggestions were made at that time. I want to put the House’s mind entirely at rest, calm fragile beating hearts and say that Her Majesty’s loyal Opposition will almost certainly not oppose the regulations.

[Sammy Wilson (East Antrim) (DUP)]

One way of avoiding this legislation would be for the Secretary of State to put it up to the parties in Northern Ireland. If they wish to go into the Assembly, as they all say they do, the Secretary of State could call the Assembly tomorrow and see who turns up. That would show which parties are the real obstacle to the Assembly forming again.

[Stephen Pound]

I have known the right hon. Gentleman for many years—I knew him when he was opposing his predecessor in an impressive campaign—but he tempts me down a primrose path that I must sadly resist. I cannot at this stage in my not-particularly-successful parliamentary career claim to speak for the Secretary of State for Northern Ireland. The closest that I have ever come to the Secretary of State is being on the other side of the Dispatch Box, and I am sure that she is quite happy with that—the distance, I mean. I cannot make any comment, but I am familiar with the statement, which the right hon. Gentleman has made before. Labour does not intend to oppose the regulations tonight. In fact, on the contrary, we actually intend to confirm our support. However, we would like some indication of the road map to devolution being restored.

I want to refer to Paul Murphy, now Lord Torfaen, who supported the regulations in the other place. I remember him well, and he is held in great respect. I remember that the late Rev. Dr Ian Paisley would greet him every morning with the salutation, “And how is the apostle Paul this morning?” Paul Murphy loves Northern Ireland, but he said in his speech in the upper House that

“Northern Ireland is the least democratic part of our country and of the European Union. No nationalist Members of Parliament, or, for that matter, Members of this House, take their seats”—[Official Report, House of Lords, 10 April 2019; Vol. 797, c. 519.]

and “there is no Assembly”. Tonight, we realise the full impact of that situation, which cannot be allowed to pertain.

There has been some talk of the discussions being accelerated by the appointment of an independent arbiter—someone to oversee them. It is a superficially attractive proposition, but I understand that the Secretary of State is currently in discussions with two committees of Members of the Legislative Assembly, and we would like to see how that progresses.

--- Later in debate ---

[Dr Murrison]

That’s as may be, but the hon. Gentleman will have gathered from my preamble that I am interested in ministerial decision making, and I rather suspect that very few decisions would be made by Ministers in the short space of time between the convening of the Assembly and it breaking down. Under the legislation, it certainly would not have legitimacy.

[Sammy Wilson]

I can understand the hon. Gentleman’s cynicism and caution in all of this, but as Sinn Féin, which I assume he was referring to, has publicly made it clear that it does not object to going back into the Assembly, does he not think this would at least be a useful exercise to test the sincerity of Sinn Féin spokesmen, who almost daily are now saying that they wish to go back into the Assembly? If the doors were opened and the Secretary of State invited all the parties, we would see whether or not those assurances, which are given with a straight face on the TV almost every night, are sincere.

[Dr Murrison]

I suspect that the right hon. Gentleman has his own views on the sincerity of the party to which he refers, but the preoccupation of the Secretary of State is the good governance of Northern Ireland. In that respect, I suspect we would not be moved much further on were we to recall the Assembly and see who turns up.

The date of 25 August is interesting. As has been said, not much is likely to happen between now and then, particularly given the marching season. What happens on 25 August? It seems to me that there could be a throwing of the electoral dice in order to work out a way forward because something might turn up; the numbers may change and it may be possible to form an Executive. The sense is that that would not happen.

We are then of course faced with another important date: 31 October 2019, the latest in the deadlines for this Brexit journey. One thing has been made clear in terms of the chronology: in the event of a no-deal Brexit, there would have to be some form of direct rule from Westminster. That is the only certainty we have been given by Ministers. I would like to know from the Minister, therefore, whether it is his working assumption that, on 25 August, an election would be called in very short order, because that would give a small window between then and 31 October in which to hold elections and perhaps have a slightly different outcome from the one we have at the moment—that may just be crucial.

That is pretty much all I have to say. As the Minister has said, this is a short measure and it is unobjectionable. Like most right hon. and hon. Members, I cannot wait to get on to discuss seed potatoes, which is the second matter of Northern Ireland business we will be debating this evening.

Northern Ireland: Murder of Lyra McKee

Sammy Wilson Excerpts

Tuesday 23rd April 2019 Commons Chamber

[Karen Bradley]

I will be very happy to take that matter up with the Home Secretary. The hon. Gentleman’s words and sentiments are absolutely right.

[Sammy Wilson (East Antrim) (DUP)]

There has been a typically selfish, self-centred and “we’re the only people who matter” response from the republicans who have tried to justify the murder this weekend, describing it as a “difficult time for republicans” and blaming it on the PSNI by saying that it would never have happened if they had not been there. Will the Secretary of State give this House an assurance that, despite the fact that these people can rent a mob, rent a riot and everything else to try to disrupt life, there will be no let-up in police activity to search out the arms of these people? Will she also assure us that the police will not let up in pursuing and bringing to justice those who spread poison and hatred through social media or at graveside speeches, or who strut around the streets in illegal paramilitary parades?

[Karen Bradley]

My conversations with the police officers of the PSNI, including at the Strand Road police station on Saturday, have given me absolute reassurance that the PSNI is determined to take those steps, and that there will be no let-up.

Oral Answers to Questions

Sammy Wilson Excerpts

Wednesday 10th April 2019 Commons Chamber

[Karen Bradley]

The hon. Gentleman refers to a number of issues that may be making it more difficult for parties to find an accommodation to enable them to restore devolution. I know that he is a supporter of devolution, and therefore I suggest to him that the best way that we can all help on that is to vote for the deal.

[Sammy Wilson (East Antrim) (DUP)]

More than two years ago, Sinn Féin collapsed the Northern Ireland Assembly. Since then, rather than looking for its restoration, it has been fixated on getting a border poll and on stirring up sectarian tensions in Northern Ireland at the expense of people who want decisions made on education, health, infrastructure, job promotion and so on. In the face of Sinn Féin opposition to setting up the Assembly again, what plans has the Secretary of State considered to get decisions made in Northern Ireland?

[Karen Bradley]

The right hon. Gentleman knows that the best thing for the people of Northern Ireland is devolved government in Stormont, with local politicians making decisions for the people who elected them. That is what we are all determined to see, and I am as determined as anybody to make sure that I put the conditions in place so that we can enable that to happen.

Northern Ireland (Regional Rates and Energy) (No. 2) Bill

Sammy Wilson Excerpts

2nd reading: House of Commons
Wednesday 6th March 2019 Commons Chamber

[Karen Bradley]

That is why a buy-out scheme is available: so that boiler owners can choose individually. I cannot say exactly what the rate will be, because it will depend on, for instance, the subsidies that have been received to date. The calculations will be individual, but a buy-out will be available to boiler owners who do not believe that the subsidies now available will enable them to continue in business.

[Sammy Wilson (East Antrim) (DUP)]

rose—

[Gavin Robinson]

rose—

[Karen Bradley]

I do want to make some progress, but I recognise that many interests are involved. I will give way to the right hon. Member for East Antrim (Sammy Wilson) and to the hon. Member for Belfast East (Gavin Robinson), but then I will conclude my speech.

[Sammy Wilson]

Does the Secretary of State accept, first, that the terms of the buy-out scheme are not clear and, secondly, that a large number of people—probably those who are most affected by these changes—will not be able to avail themselves of it?

[Karen Bradley]

I will now give way to the hon. Member for Belfast East.

--- Later in debate ---

[Sammy Wilson (East Antrim) (DUP)]

It is a pleasure to follow the hon. Member for Lewes (Maria Caulfield). I thank her for her genuine interest in Northern Ireland affairs and for contributing to the debate.

As has been pointed out, this Bill contains two totally unrelated pieces of legislation. The reasons for that have been given, although I am not convinced that this is the best way of dealing with the issues at hand. Let me deal first with rates. I accept what the Secretary of State said; it is important that people in Northern Ireland contribute through their rates to some of the public expenditure required to keep services going in Northern Ireland. But when we impose those additional charges, whether on domestic or business rates, it is important that we bear in mind two things: the ability to pay and the impact that any taxation has on either the businesses or households concerned.

I have reservations about the level of the domestic rate increase, which is above the rate of inflation—it is the rate of inflation plus 3%. That will cause difficulty for households, as some people will not qualify for housing benefit on their rates but are still in low-paid employment and want to stay in employment. That will cause difficulty, but it is nothing compared with what was originally proposed. Let us not forget that the original proposal was 10% plus inflation. I am glad that the Secretary of State did not pursue that. The party of government, like my party, believes in leaving people with as much of their money to spend as possible. People know how to spend their money better than the Government. It would have been a travesty if the Government had proposed an 11.8% increase in the rates that people pay for their home, especially given the Government’s boast time and again—one they ought to be proud of—that they are seeking to bring down the level of taxation. I am pleased that my colleagues and I had a role to play in knocking that figure down.

On the issue of business rates, this is really a 0% increase in real terms. Nevertheless, business rates in Northern Ireland are, for a number of reasons, some of the highest in the United Kingdom. The Chancellor has announced some business rates relief schemes—incidentally, we did have a Barnett consequential for that in Northern Ireland—but because of the non-functioning of the Assembly, it was not possible to revise the small business rate relief scheme in Northern Ireland. While that money was made available to the general purse, it was not translated into reductions for businesses.

In the long term, I think we need to look at the whole issue of business rates. It is of course a tax that is not related in any way to the ability of a business to pay. It does not reflect the buoyancy of the business or, indeed, the income from the business; it simply reflects the size of the premises and the rateable value of the premises that businesses happen to be occupying. For some people, that will lead to under-taxation because they could afford to pay more, but for many businesses it leads to over-taxation because their overheads go up or stay the same even though their income and their ability to pay are going down, which affects so many.

I suppose it is not just an issue for Northern Ireland, but this is one of the reasons why we have so many vacant premises on so many of our high streets. As businesses have come under pressure from online retailing and from the changes in the way consumers spend their money, they find their revenues going down, but the overhead of rates still remains the same. In the longer term, I think we need to have a review of business rates. I am pleased that at least there has not been a real-terms increase in rates for businesses, although I know many of them will struggle even with the inflationary increase in this piece of legislation.

Let me turn to the second part of the Bill on the changes to the renewable heat incentive payments. I do not think anyone can say that this scheme has been a success by any means. In fact, it has been a disgrace, and the way in which it was set up and has been abused required there to be a change. However, I must say that when it comes to subsidies for renewable heat, I do not think that some of the practices instigated through this Parliament and in this part of the United Kingdom would stand up to scrutiny any more than the renewable heat incentive stood up to scrutiny in Northern Ireland.

We have a situation at present that makes the subsidy in Northern Ireland disappear into insignificance. At Drax B power station, the subsidy has climbed from £250 million a year when the Liberal Democrat Minister introduced it to £800 million this year, and it is going to go up to £1,000 million a year, when coal could be mined two miles down the road. And what do we do? We bring in wood pellets from America. We chop down trees in America, put them in a boat, bring them to England and burn them in a power station, and we pay a subsidy of £800 million a year for it. I wonder how many houses in the south of England are having their outdoor swimming pools heated with boilers for which people get a renewable heat incentive payment. Is that a good use of public money? The renewable heat incentive has not received the same level of scrutiny in other parts of the United Kingdom as in Northern Ireland, where it was seen to be abused. However, there are big questions to be asked about the scheme, not just in Northern Ireland but in any other part of the United Kingdom.

I have several points to make about the need for review. We have been told that the legislation has to pass today instead of being given the level of scrutiny required. Many hon. Members have asked detailed, probing and important questions, but we are told that if the Bill does not pass today, no subsidy regime at all will be available at the beginning of the next financial year, and that if we continue with the existing subsidies, we will be subject to infraction proceedings from the European Union.

Why was all this brought forward at the last minute? It is not that the review of the scheme has been forced on the Department in the past three or four months; it was initiated by the last Minister for the Economy before the Assembly fell, more than two years ago. What has happened in the meantime? Why has it taken two years, with a rush to pass the legislation at the very end? The joke in Northern Ireland is that evolution works quicker than some of our Departments. However, given that the review was initiated more than two years ago, I have to ask why, at the last minute, we are suddenly being presented with a piece of legislation that raises a lot of questions, instead of being given time to carry out the proper scrutiny, in Committee and so on, that the hon. Member for Lewes and the Chair of the Northern Ireland Affairs Committee have suggested.

[Maria Caulfield]

It strikes me, as an MP who is still fairly new in this place, that the attitude is often, “It’s only Northern Ireland, so we can whizz it through in a day.” It should not be right for any Bill to pass Second Reading, Committee and Third Reading in one day without any suitable scrutiny.

[Sammy Wilson]

The hon. Lady makes her point well, as she did in her speech.

Not everyone abused the scheme. Some did, and it is right that their subsidies were cut, but many people had the scheme sold to them by the then Sinn Féin Minister of Agriculture and by the Minister in the Department for the Economy. It was sold to farmers and many other businesses as a subsidy for heating their premises because they were using the kind of energy that was in vogue with the Department, which wanted to cut down on CO₂. I am not really sure how burning wood cuts down CO₂ emissions—I am told that it puts as much CO₂ into the air as coal, and some of the pellets are imported from miles and miles away—but that was the thinking at the time.

People undertook in good faith to install the boilers. They borrowed money, expecting a certain level of return and a flow of payments. They could have put in gas boilers and got cheaper energy, but because of the hysteria against fossil fuels, it was decided to subsidise wood burning, so people installed a more expensive boiler and expected to get money in return.

We are told that the sudden and very substantial reduction in the subsidy happened because the EU said that it was required to keep us to the average 12% level. There has been some dispute, in discussions with officials, about whether the rate of return can be between 8% and 22% so long as it averages out at 12%, or whether it is a maximum of 12%. If we had had the time or a mechanism to bring forward officials we could have probed into that, but we are told it is 12%.

In England, the subsidy per boiler is about five times higher than the subsidy per boiler in Northern Ireland. The scheme in the Irish Republic pays about six times more per boiler than in Northern Ireland. The question is this: how can you pay a subsidy five times more in England and still be within EU state aid limits? You can pay a subsidy that is six times more in the Republic of Ireland and still be within EU state aid limits. In Northern Ireland, however, it has to be at the level of £2,000 per boiler to stay within the state aid limits.

The explanation given—I cannot question it as I do not have enough information—is that, “Oh, the cost of boilers and the cost of fuel is different in Northern Ireland from the cost in England”. I could believe that if we were talking about, say, a 10% difference, but we are talking about a percentage difference in the hundreds here. Why does a boiler cost substantially more in England than it does in Northern Ireland? You might argue that it is because of transport costs, but then why does it not cost more in the Irish Republic? If a boiler has to come from England or another country, it has to be transported across the sea to the Republic of Ireland. Why should fuel cost substantially more in Northern Ireland than it does across the border in the Irish Republic? There might be some explanations as to why it costs less than in England, but why should there be such a huge difference between the two jurisdictions on the one island?

There could be perfectly good explanations for that, but given that the Department for the Economy got its figures so wrong for the initial scheme, you can understand, Madam Deputy Speaker, why people in Northern Ireland are sceptical about any figures that come out of the Department. The Department did not spot that the subsidy was substantially more than the cost of fuel and got its figures so wrong that there was a massive overspend. Figures for any scheme it brings forward need to be scrutinised properly. There is no opportunity to do that, despite whatever questions we ask Ministers today. A lot of these things come out through discussion, not through a question and a quick answer back from a Minister.

Those are the kinds of issues that need to be addressed. Unfortunately, I think we will have to vote for the Bill tonight, because there really is no alternative and it would be far worse to leave people with no scheme by voting against it. However, the Chairman of the Northern Ireland Affairs Committee suggested that there ought to be a commitment to allow the Committee, even after the Bill is passed, to have the opportunity to bring officials and anyone else necessary along, so that it can question them on the figures. If those figures are shown to be wrong, the scheme has to be amended to ensure that the level of subsidy paid reflects the true costs of the scheme. That is the one assurance we have to give to those who have been badly bitten.

I welcome the intervention and the fact that there was also some discussion on the budget, albeit late in the day. I think it was only two or three weeks ago that we were first given sight of what was proposed in the budget, but because the decision had to be made internally—purely by the Northern Ireland Office and the Department of Finance—there was time to revise the enormous increase that was being proposed initially for the rates. In the case of the renewables scheme, it had to go back to Europe. Thank goodness that after 29 March, we will not have to worry about state aid rules. We can make our own decisions. That is a good thing and another reason why the House should make sure that we get out on 29 March, so that we can decide on the kind of support that we want to give industry or the lack of support—

[Maria Caulfield]

rose—

[Sammy Wilson]

I knew that that would get the hon. Lady going.

[Maria Caulfield]

May we ask the Minister if—when we leave the EU on 29 March—we could look again at the subsidy issue, given that state aid rules will no longer apply?

[Sammy Wilson]

I agree with the hon. Lady. One of the reasons why we need scrutiny of the legislation, even after it has gone through, is so that we have a chance to revise it if we see that the figures are wrong. Since people have bought the boilers and had the infrastructure installed, would it be better to find a level of subsidy that enables people to continue to use them rather than just buying them out? The fact that we have a buy-out clause in the Bill shows that the Government and Department know that there will be hardship for people, although I suspect that the terms of the buy-out will be so draconian that it will not be worthwhile people doing that.

We will be supporting the legislation, albeit reluctantly, but on the basis that there will be an opportunity for the good questions that Members across the House have asked today to be looked at in more detail.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Before I call the next hon. Gentleman to speak, I have to announce the result of today’s six deferred Divisions on questions relating to regulations on exiting the European Union. In respect of the question relating to financial services and markets, the Ayes were 303 and the Noes were 250, so the Ayes have it. In respect of the question relating to electricity, the Ayes were 302 and the Noes were 44, so the Ayes have it. In respect of the question relating to gas, the Ayes were 300 and the Noes were 44, so the Ayes have it. In respect of the question relating to food, the Ayes were 303 and the Noes were 44, so the Ayes have it. In respect of the question relating to electronic communications, the Ayes were 301 and the Noes were 257, so the Ayes have it. And, in respect of the question relating to road traffic, the Ayes were 301 and the Noes were 251, so the Ayes have it.

We will recommence the Second Reading debate with Mr Vernon Coaker.

[The Division list is published at the end of today’s debates.]

--- Later in debate ---

[Ian Paisley (North Antrim) (DUP)]

It is good to follow the hon. Member for Gedling (Vernon Coaker). When he said, “Where there’s a will there’s a way,” I thought he was going to get into the Brexit debate, like my right hon. Friend the Member for East Antrim (Sammy Wilson), and say, “If there’s a will, there’s a way,” and we hope that in the next few weeks we find that will from our negotiating partners and then find a way out, truly, of the EU. But I digress by straying on to the Brexit debate.

The debate on the Bill has largely been masked by the debate around RHI, and it would be remiss of me not to pass some comment on clause 1 and what has been achieved. My right hon. Friends the Members for East Antrim (Sammy Wilson) and for Belfast North (Nigel Dodds) and my hon. Friend the Member for Belfast East (Gavin Robinson) have been heavily engaged for the last number of weeks on that point. As has already been alluded to, we would have been facing a massive rates hike if it had not been for that negotiation. If only it had been the same for the second part of the Bill: that we had had early sight of it and could discuss and challenge and probe it and therefore see a much more beneficial change than the one that has come forward on RHI. We must, however, congratulate our colleagues on their hard work in trying to significantly improve the rates issue.

The shadow Secretary of State, the hon. Member for Rochdale (Tony Lloyd), made some very kind remarks about the situation in Ballymena. I believe that there is an agreement today to see new opportunities created there by USEL, an employer that has set up a site on the Woodside Road industrial estate, and that is leading directly to the employment of 60 new workers in the constituency. Unfortunately, I was unable to attend the opening of that site because of duties here in Parliament, but I know that the Gallaher charitable trust, which I chair, led with key financial support to that building and that employer and that that has directly resulted in the employment of those people. Where did that charitable trust money come from? It is a legacy fund left over from when JTI Gallaher had to close its doors, and I am delighted that the first thing we have been able to do, through paying out money and resources, is to help to create 60 new jobs in the constituency. I hope that in the next few years we will see not only the charity that I chair but other employers adding to the local economy and creating new jobs and skills, leading to a revival in local employment.

I hope that the measures on the city deals will shortly come before the House, as they could apply very beneficially to the Mid and East Antrim Borough Council area, as could the Heathrow hub scheme. All those projects could see a huge increase in the employment and opportunities coming to my constituency, and I am delighted with the work that will be done in that regard. I want to ask the Secretary of State and her Minister to challenge Translink to hurry up and create more orders for the local bus building company in my constituency. It is great to see it getting orders from places all over the world, including Latin America and Hong Kong, but I would love to see more orders coming through to it from Translink, and I encourage the Secretary of State to push for those orders to come forward.

We now have to turn to the perplexing issue of the renewable heat incentive. The shadow Secretary of State was absolutely right to say that we are being presented with an amalgamation of two Bills. That is wrong; there should be a stand-alone piece of legislation on the RHI, because it is so controversial and far-reaching, and because the consequences of the issue will be felt by a lot of people in Northern Ireland for a very long time—indeed, probably for the next 20 years. Instead, these measures have just been stapled on to the back of this Bill, and we are now being expected to nod it through without serious, appropriate scrutiny. I do not believe in nodding through legislation; nor do I believe in the emergency process by which we are taking through this legislation. Northern Ireland deserves better, and this House has to demonstrate to Northern Ireland that we are going to give it better.

Officials in Northern Ireland have handed us these proposals, and I believe that they think we should accept them without challenge or scrutiny. That would be wrong, because it would be unfair on the people we represent. I think that people will understand and accept our caution, given that these are the very same officials who brought forward the first flawed scheme. We are now expected to accept the evidence they are giving us today as being good, beneficial, tested and rigorous and to accept that it will be all right on the night. That is not the case, however, because there are flaws in what is being put to us, and even in the manner in which it is being put to us, and they should be properly challenged.

Those in the Department are privately telling us that they would welcome the opportunity for further scrutiny. They do not want the debacle of the past to happen again; they want to learn from the mistakes of the past, rather than to repeat them. I believe that any such extra scrutiny would be very beneficial. A new clause has been tabled to the Bill—it stands in the name of the Chairman of the Northern Ireland Committee, the hon. Member for South West Wiltshire (Dr Murrison), and several other Members from across the House—and I hope that the you, Madam Deputy Speaker will be kind enough to select it and allow us to debate that issue properly.

Two wrongs never make a right. The obvious historical problems with the RHI tariff are the subject of an ongoing inquiry, and it would not be right to press those matters here today. However, the future ought never to be held to ransom by the past. Unfortunately, the Bill that the Secretary of State has brought to us today will hold the future of the RHI to ransom because of what has happened in the past, and that is wrong. We need to treat people fairly and honestly going forward. No matter what the RHI inquiry throws up, which will have to be dealt with on its own terms, we have a duty and a responsibility to treat the RHI owners in a way that is respectful, honest and fair, and equitable with the rest of the United Kingdom.

Everyone can look at the measures and the proposed cuts in support—from as much as £13,000 to about £2,000 per annum—and then at those same people who have bank loans signed up to on the basis of the original business plans and legal arguments. The banks, however, will not go back on the original plans. They will not say, “We’ll just forgive all that debt; it’s all over.” Banks do not operate like that, and why should they? They were given business plans guaranteed by the Government—legal guarantees—and they expect people to honour the payments agreed.

The Government have to accept that the way in which the issue has been brought forward tonight is not fair to 2,020 boiler owners in Northern Ireland. The vast majority of them, as the hon. Member for Gedling said, have done nothing wrong; they followed the rules, totally and absolutely, yet tonight they are being held to ransom by the system. Most of those RHI users are not abusers of the system, but they will all be punished by the system that is to be introduced now. Again, that is grossly unfair.

People can look across the channel to see the English system, or south to see the RHI system that has been proposed but not yet introduced in the Republic of Ireland, where support will be significantly higher than even here on the British mainland. The Bill will not only punish but in effect end for the next 20 years all renewable energy plans and damage forever anyone who claims a copper-bottomed guarantee from the Government, no matter the shade of that Government, because they will look back at this scheme and say, “Look how we were done over, treated shabbily and given no answers to our questions. This will lead us to a situation in which we are treated badly.”

Today, I tabled questions about levels of support and Barnett consequentials for RHI payments in both Scotland and Wales. The proposals in the Republic of Ireland will be so much more generous even than what will be made available here in England, as well as in Scotland and Wales. The only part of the United Kingdom that will therefore be treated unfairly is Northern Ireland. The cuts are to the bone, and through it.

The argument presented by the Department yesterday in a 15-minute presentation was that this would stop a breach of state aid rules. That simply is not good enough. We have to be given more substance and the legal arguments to demonstrate the precise nature of those state aid requirements, which do not appear to apply to another European Union member state—namely, the Republic of Ireland—or to the rest of the United Kingdom or any of its regions, whether Scotland, Wales or England. State aid rules are supposed to apply in the same way, yet Northern Ireland has been singled out to be treated differently.

The Department has a duty to make the case in public. It and the Secretary of State cannot give a 15-minute briefing to the shadow Secretary of State or us as Members of Parliament in a conference, and then expect us to sell it to the public. Do they think we are mad? That is not acceptable. The Department has a duty to stand up in public and to defend itself. Will the Secretary of State make herself and officials available to the Northern Ireland Affairs Committee for us to ask them the difficult questions? Let us at least have the opportunity to put those questions to the Secretary of State, because so far today we have had no answers to any questions.

For example, how did the Department come to the figure for the average cost of boilers in Northern Ireland? What was the basis on which that was done? The Department has given us a figure for the average cost, and are we just to accept it? We are not equipped to challenge that figure unless we see the evidence, but we are not allowed to see that evidence. We are just told that we have to accept it. We have the great sword of Damocles hanging over us—“If you don’t accept it by the end of the month, farmers will not be paid.” Blackmail is all that is, and it is wrong.

What is excluded from the cost assumptions in Northern Ireland? Are those same exclusions made to the cost assumptions here in England? We did not get any of that answer. We asked three or four times during the 15-minute presentation, and there were raised eyebrows, buts and tuts, and, “Ask someone down the video line. He might be able to tell you.” We were not able to confirm whether the £2,500 plumbing costs or the £1,000 electrical costs are included in the English scheme but excluded from the Northern Ireland scheme. If so, why? If they are, I am not the one to sell it to the general public in Northern Ireland on the basis of a 15-minute presentation; it is up to the Department to sell it.

When a person applies for one of these boilers, they have to seek planning permission, which is a costly exercise. They have to pay a lawyer and, usually, an architect. Is all that included in the English scheme but excluded from the Northern Ireland scheme? Apparently, it is included in the English scheme but excluded from the Northern Ireland scheme. If it is excluded from one on the basis that it is against state aid rules, I can tell the House there is an express train coming down the tracks towards those who try to include it in the English scheme. We have to address those issues.

Do the cost assumptions differ from what is permitted in England? If so, why do they differ? The Department and, indeed, the Secretary of State need to answer that question. If 12% is the rate of return, why can the rest of the UK work on a rate of return of between 8% and 23%, as my right hon. Friend the Member for East Antrim said? Why is there that differential? We were given an excuse yesterday. We were told 16 times that the European official had told the Department for the Economy that it could not move from 12%. Why can it not move from 12%? It is up to the Department to reveal the answer, if it has one. Why should I go out and sell it to my constituents when the Department told me that Europe has said it cannot do it? That might have been all right for the past 40 years, but from 29 March it will not be acceptable. Europe cannot tell us all those things, and it is therefore wrong, 23 days before we leave, that the EU is allowed to hold us to ransom on that point.

When we ask whether the state aid rules will still apply after 29 March, some lawyers say they will and others say they will not. Why should I make the case in public? It is up to departmental officials and the Secretary of State to make the case, and they have to answer those questions. Officials say that the EU does not allow them to stray from 12%. Why is that the case? A judicial review was lodged this morning, and the appeal will be heard in April. Is it really appropriate for us to change the tariff about 30 days before that judicial review hearing? I do not believe it is. I think that in itself could constitute knowledge that we were doing something wrong, and I think the Department needs to move.

The right hon. Member for Orkney and Shetland (Mr Carmichael) made the point well that the buy-out scheme is an admission that this scheme is flawed. If that is the case, the Government will pay out even more compensation if it goes to judicial review. Will the state aid rules apply after 29 March?

If we were successful in voting against the Bill tonight, would the payments stop on 1 April? The Secretary of State made that case. When we asked yesterday for evidence to back it up, we were told that it is just a legal opinion, but that legal opinion is being tested in the courts today because there is another equally valid legal opinion saying that it is a wrongful interpretation. We will know the outcome in the first or second week of April.

All those questions need to be answered in advance of our taking a decision. We are not being given the proper time to scrutinise this properly. It is little wonder that we have been inundated by calls, emails and personal visits from hundreds of constituents, businesses and farm families who are affected because this touches more than 2,000 owners in Northern Ireland. If those businesses go out of existence, that would be the equivalent of 60,000 or more small businesses closing here on the British mainland. That perhaps gives a sense of the proportion of what has been affected; we are talking about tens of thousands of families who would be affected if this was transferred over here. We have to address that matter properly. The Department has a duty to make that case in public. It is not our duty to make the case for it, because it is sitting on the evidence. I would therefore welcome the opportunity to scrutinise it properly; the Secretary of State and officials should come before the Select Committee. They should make themselves available instead of expecting us to nod this matter through.

I agree that if Stormont was in place tonight, this debate would be better placed there—that is where it should be taking place—but we have to deal with the cards as they are currently, and Stormont is not in place. It would therefore be a dereliction of our duty to do this in what we would describe locally as a “half-baked way”. Frankly, what we are doing here tonight is half-baked; this is not proper scrutiny, with Parliament at its best, but Parliament doing something and taking shortcuts. That will result in problems down the line. I fear that in a matter of months something will come out and people will say, “You really should not have taken that decision on 6 March 2019. It was a huge mistake.”

We are therefore right to be cautious about supporting this part of the Government’s proposal tonight. This House has a duty to carry out scrutiny, in the absence of the Assembly, and to do it properly. The Department, whenever we met its representatives, outlined how it came to its calculations, but the only conclusions I can draw is that if the Department for the Economy is right in what it has told us, the scheme currently operating here in England is unlawful. If that is the case, an even bigger question is raised. I have asked that very question of officials and looked at their answer. If officials know that that system was unlawful, they are on notice today that they had knowledge of it and, in effect, they let us know that they had knowledge of an unlawful system operating on the mainland. If that is the case, the scheme being proposed for the Republic of Ireland would, similarly, be unlawful under state aid rules. So the Government have a duty to allow us to scrutinise this properly. I welcome the fact that an amendment has been tabled, which we will get to debate later, and I hope the Government will be able to concede some of the points we have put to them and that we will be able to address those issues fairly.

I wish to end my remarks by referring to a couple of emails that I have received out of those from the hundreds of people who have been in touch with us. Whenever we boil things down to the actual person and family involved, we actually see what is happening. Jacqui and Thomas are from a farm family in my constituency. They said that the Department for the Economy has been “ignoring” them for months. They said that they have been emailing the Department, trying to make contact with it and sending it their questions about these matters when the consultation originally came out, but it has been ignoring “genuine RHI users”. Jacqui says:

“I totally object to be financially punished for adhering to the requirements of the Scheme and blame this department for putting my farming business at risk.”

That will have been repeated up and down the country, not just in my constituency, but across County Tyrone and in all of County Antrim, where we are a major food producer for these islands.

We must remember that this is largely about producing poultry that is sold in supermarkets up and down the UK. Most of the poultry eaten on this side of the channel is grown in County Antrim and County Tyrone. If this puts farm businesses at risk, it damages our food security and our biosecurity and everything is now at risk. That is the consequence of what we are doing; it damages businesses and it damages what we actually feed to our children. So let us address it and address it properly.

[Sammy Wilson]

Does my hon. Friend not think it is rather ironic that we have had all these debates in the House about the impact of Brexit on supply chains, yet here is a measure that, as he has rightly pointed out, could have a massive impact on the supply chain of the agri-food business in Northern Ireland and throughout the United Kingdom?

[Ian Paisley]

The consequences of and ripples out from this are so significant. It is not about cheap energy; it is about how we run our economy efficiently and effectively. What is our economy in Northern Ireland? It is principally small businesses that produce the best viable, traceable, tastiest food in these islands. We are putting that at risk, and we are putting those jobs and farm families at risk. We really need to pause, and the amendment tabled by the hon. Member for South West Wiltshire gives us that opportunity to try to get this right. I look forward to the second part of proceedings.

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[The Minister of State, Northern Ireland Office (John Penrose)]

I will try to address a series of specific points that various Members have made during the course of this debate. I will also try to address some of the broader questions, some of them quite fundamental, about the RHI scheme and its many and manifest problems and shortcomings. That is partly because those issues were raised in the debate, but also because we are going on to consider an amendment in Committee and it may help to have a bigger shared fact base. This will not answer all the questions that will, quite rightly, be raised in Committee, but it may at least lay the foundations of that debate and help us to address them at that stage.

As the hon. Member for Bristol South (Karin Smyth) rightly said, we have had quite a narrow debate although with widely shared views across the House. I strongly agree with one point that she made at the end of her remarks, which is that it is easy to forget, amid all the concern about the flaws in the RHI scheme, that it was introduced for a very noble purpose as part of an attempt to decarbonise our economy by increasing the amount of renewable energy in Northern Ireland. That is part of a broader tapestry of other initiatives that are being introduced right across the UK and, indeed, in other countries around the world. We clearly should not lose sight of that—it is a vitally important point.

[Sammy Wilson]

Does the Minister agree that it is rather ironic that a scheme that is meant to decarbonise—for some people that is important; for others it is just an expensive burden on the economy—finishes up with wood being put into pellet form in North America, brought in ships across the Atlantic ocean, and then burned in boilers here in the United Kingdom? Does he really think that is a way of cutting down on carbon emissions?

[John Penrose]

The right hon. Gentleman said that he was not quite sure why burning wood was any better than burning other things, because the emissions are similar. If my hon. Friend the Member for Richmond Park (Zac Goldsmith) were here, he would make the point that we have to be extremely careful about how we calculate the carbon footprint of some supposedly renewable fuels, because if we cut down virgin rainforests to grow things that are then pelletised and burned, the overall genuine carbon footprint is much worse than people like to pretend.

However, my hon. Friend would also make a sharp distinction between what I think is called long-cycle carbon—in other words, fossil fuels, where carbon has been locked away for millions of years, are a net release that makes an overall difference to the level of carbon—and short-cycle carbon, which is a sort of short-term recycling whereby things are grown in the course of our lifetime and burned. I will not try your patience, Madam Deputy Speaker, by going into the detail of the level of greenery, but I hope we can all agree that this scheme, with all its manifest flaws, intended to pursue a noble purpose.

Before I go on to the details of the RHI scheme, I will address a few other points. The hon. Member for Belfast East (Gavin Robinson) asked a series of questions about Northern Ireland housing associations and, I think, was hoping to pin us down on when a piece of legislation might be introduced. I want to reassure him—my right hon. Friend the Secretary of State made this point, but I will repeat it—that the Government will take that forward as soon as parliamentary time allows.

The hon. Member for Rochdale (Tony Lloyd) asked about the stronger towns fund and said that he did not feel he had enough of an answer yesterday; I want to ensure that we try to provide that today. He will be aware that the Secretary of State for Housing, Communities and Local Government made an announcement yesterday. The Treasury will apply the Barnett formula in the normal way and confirm the funding for each region in due course. We do not know that yet, but it will come out, and we will seek to ensure that towns in Northern Ireland, Wales and Scotland can benefit, building on the success of the Government’s growth and city deals.

The hon. Gentleman also asked about the applicable costs of the RHI scheme. I will address that specific item before coming on to the broader points. The scheme guidance, which I am sure we are all itching to go through in huge detail, has been published, and it sets out clearly the eligible costs. They are primarily the costs of the boiler. He mentioned costs to do with installation, pipework and the like, and some of those are included as well. Interest costs on borrowing are apparently not included as an eligible cost in this scheme. I wanted to share that with everybody, so that we have a shared fact base before we go into Committee and discuss the detail of the amendment tabled by the Chairman of the Northern Ireland Affairs Committee, my hon. Friend the Member for South West Wiltshire (Dr Murrison).

Questions have been posed about the up-front payments and how they would be calculated for people who wanted to opt out of the scheme because they felt that if they remained in it, they would lose out too badly. Straightforwardly, an individual’s costs—that means the cost of installation, the capital cost of the boiler and other eligible installation and running costs—will all be included, and they will be reimbursed up to the 12% target rate of return for the revised scheme. All the additional costs of the renewable technology above a fossil fuel one will be reimbursed. That is crucial, because a number of Members have raised questions about what happens to people who are worried that they are going to lose out. The hon. Member for Strangford (Jim Shannon) read out an email he received from someone with precisely those concerns. If they are concerned that it will no longer be economic for them to stay in the scheme, they can opt out. It will be a free option for them, and they are guaranteed to have made 12% on their money if they decide to opt out at that stage.

Northern Ireland Budget (Anticipation and Adjustments) (No. 2) Bill

Sammy Wilson Excerpts

2nd reading: House of Commons
Tuesday 5th March 2019 Commons Chamber

[Karen Bradley]

I understand the hon. Gentleman’s concerns, but we have to be aware of the constitutional precedents that are set by changing the way we scrutinise these Bills. The way this Bill should be taken through is not as primary legislation; it should be an estimates process done in Stormont, in the same way as we vote on our Budget in this House. We do not have scrutiny of the Budget resolutions upstairs; we have a Finance Bill that puts them into legislation, but we vote on Ways and Means resolutions on the Floor of the House. Unfortunately, we do not have the ability to do that in Stormont, for well documented reasons. What I want is to see those politicians in Northern Ireland doing the right thing, coming back to Stormont and forming the Executive, so that all those proper processes can be applied. We should not kid ourselves that some substitute arrangement will offer a different approach; we have to see devolved government restored in Stormont.

[Sammy Wilson (East Antrim) (DUP)]

rose—

[Karen Bradley]

I know the right hon. Gentleman wants to come in, but I want to make some progress, because I am conscious that others want to speak and we want to make sure everyone has a chance to be heard.

Let me go back to the work we are doing today. Like last year, the draft budget sets headline allocations only. It will remain for Northern Ireland permanent secretaries to use the powers of this budget legislation and the draft budget position to take decisions to maintain public services and live within their means. Also like last year, the Bill does not propose any new moneys to be voted on for Northern Ireland. The totals to which it relates are either raised locally or have been subject to previous votes in Parliament, most recently in respect of the Supply and Appropriation (Anticipation and Adjustments) (No. 2) Bill, which has passed through this House and is now in the other House. Instead, the Bill looks back to confirm spending totals for 2018-19, to ensure that the Northern Ireland civil service has a secure legal basis for its spending in the past year. Taken as a whole, it represents the minimum necessary intervention to secure public finances at this juncture.

Let me turn briefly to the Bill’s contents, which largely rehearse what I set out to the House in spring last year when I introduced the Northern Ireland Budget (Anticipation and Adjustments) Act 2018. In short, the Bill authorises Northern Ireland Departments and certain other bodies to incur expenditure and use resources for the financial year ending on 31 March 2019—this month.

Clause 1 authorises the issue of £16.8 billion out of the Consolidated Fund of Northern Ireland. The allocation levels for each Northern Ireland Department and the other bodies in receipt of the funds are set out in schedule 1, which also states the purposes for which the funds are to be used.

Clause 2 authorises the use of resources amounting to some £20 billion in the year ending 31 March 2019 by the Northern Ireland Departments and other bodies listed in subsection (3).

Clause 3 sets revised limits on the accruing resources, including both operating and non-operating accruing resources in the current financial year. All are largely as they appeared in the Northern Ireland Budget Act 2018. The revised totals for Departments appear in schedules 1 and 2.

Clause 4 sets out the power for the Northern Ireland civil service to issue out of the Northern Ireland Consolidated Fund some £11.8 billion in cash for the forthcoming financial year. That is the vote-on-account provision that I have already outlined. It is linked to clause 6, which does the same in terms of resources. The value is set at around 70% of the sums available in both regards in the previous financial year. Schedules 3 and 4 operate on the same basis, with each departmental allocation simply set at 70% of the previous year, and clause 5 permits some temporary borrowing powers for cash-management purposes.

As I have already noted, all these sums relate to those that have already been voted for by Parliament, together with revenue generated locally in Northern Ireland. There is no new money in the Bill; there is simply the explicit authority to spend in full the moneys that have already been allocated.

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[Sammy Wilson]

May I take the Secretary of State back to where she started, before she began going through the departmental allocations and the detail of the Bill? The whole point—it has been made time and again by Democratic Unionist party Members—is that there is no scrutiny of how the departmental allocations were reached. She is right that that scrutiny would normally be done through Stormont, but Stormont is not operating. A mechanism is available here, but there seems to be reluctance to use it because of the possible reaction from Sinn Féin. Not only is Sinn Féin stopping scrutiny in Stormont; the fear of how it will react is stopping scrutiny here. When will the Secretary of State realise that Sinn Féin cannot block the scrutiny of how money is spent in Northern Ireland by keeping the doors of Stormont shut and causing fear here about how it may react when we try to do the job in this place?

[Karen Bradley]

I know how strongly the right hon. Gentleman feels about that point, which he has raised on several occasions. He will know that we consulted on the process with all five main parties in Northern Ireland, with the Opposition and with the Northern Ireland Affairs Committee to allow some prior scrutiny of the figures. All parties had full sight of the figures that we published in last week’s written ministerial statement. He is absolutely right that normal scrutiny procedures are not in place—they will be in place only with the restoration of devolution—but I caution him against trying to create artificial scrutiny processes that might well set a precedent for the future across all the devolved nations. The right scrutiny processes are available to respect the constitutional arrangements across the whole United Kingdom and all the devolved Administrations.

Civil servants are taking decisions—not major policy decisions, but the decisions that the Northern Ireland (Executive Formation and Exercise of Functions) Act 2018 enables them to make and that we want them to be able to make. We have to be very careful about the civil service’s separation and independence from scrutiny by political masters. It is the political decisions that need scrutiny, not the decisions of civil servants. We would like to see Departments given full scrutiny in Stormont, as happens in this House, but we have to be very careful about the constitutional arrangements.

That brings me back to my point that the Bill would ordinarily have been taken through the Assembly. Clause 7 therefore includes a series of adaptations that ensure that, once approved by both Houses in Westminster, the Bill will be treated as though it were an Assembly budget Act. That will enable Northern Ireland public finances to continue to function, notwithstanding the absence of an Executive.

Alongside the Bill, I have laid before the House, as a Command Paper, a set of supplementary estimates for the Departments and bodies covered by the budget Bill. Those estimates, which have been prepared by the Northern Ireland Department of Finance, set out the breakdown of resource allocation in greater detail.

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[Sammy Wilson (East Antrim) (DUP)]

General disappointment has been expressed that, for the third year now, expenditure in Northern Ireland is being approved through this unusual process in the House, with little or no scrutiny or knowledge of how the allocations to Departments have been decided. We do not know what arguments were made for giving 3.8%—or whatever it was—to health and 1.1% to education, while other Departments suffered an overall reduction and others’ budgets were kept static. We have had no opportunity to ask civil servants what cases were made or whether they were valid. As my hon. Friend the Member for Belfast East (Gavin Robinson) pointed out, it is not that there is no mechanism for such scrutiny; it is simply that a choice was made not to use the mechanism that is available through this House.

Of course, this should all have been done at Stormont. During the budget process, its committees ought to have brought civil servants in, asked them what bids were being made and what arguments were being employed, and then made a judgment on the merits of each case. However, we are not in that position—not because parties in Northern Ireland do not want the opportunity of scrutiny at Stormont, but simply because they have been prevented from carrying it out.

Using the terms of the arrangements for setting up a Government in Northern Ireland, Sinn Féin has been able to prevent the coalition arrangement that was forced through in the Belfast agreement from being implemented. Because including the two main parties in the Executive is a compulsory imposition rather than a voluntary arrangement, if one of those parties throws a hissy fit and decides that it does not want to be in the Executive, everybody is kept out—not just from the Executive, but from Stormont and from all the roles and responsibilities that they were elected for and would normally be entitled to carry out.

The Secretary of State quite rightly says that this process should be done at Stormont, but she knows that it cannot be done there. Like the shadow Secretary of State, I do not place the blame totally at the door of the Secretary of State. She has to operate within the rules, and the rules state that if one party decides to veto, not a great deal can be done about it. For reasons that I will explain in a moment or two, no powers of persuasion will persuade Sinn Féin to go into Stormont at this particular time; they have made that quite clear. Sinn Féin have thrown up every barrier. Whatever magic wand the Secretary of State might wave, she is not going to persuade them otherwise. However, there is one way in which she could put pressure on them, which is by making it quite clear to them that, through their inaction, the very thing that they do not want to happen—that is, rule by London—will happen, unless they are prepared to accept their responsibilities in Northern Ireland.

We find it difficult to understand why there has not been a willingness to take Sinn Féin on in that way, but I suspect that it is because of the advice given by the Northern Ireland Office, known colloquially among Unionists in Northern Ireland as the nest of vipers. The position of the Northern Ireland Office seems to be, “Don’t annoy Sinn Féin and don’t annoy the Irish Government.” I suspect that a large part of the reason why we have not moved to greater scrutiny and greater decision making by Ministers here is the advice of the Northern Ireland Office: “Don’t rock the boat.” But if we don’t rock the boat, we are going to stay on the path that we are on at present, which does not provide scrutiny of the most important issue for politicians—the expenditure of resources for the benefit of the community.

Not only do we not have scrutiny of the overall budget allocation, we do not even have scrutiny of the efficiency of current spending. Looking through the various headings for expenditure last year, or through the proposed 70% expenditure for next year, we can see many areas where there is great concern about the way in which money is spent. I will pick out just a few. Take, for example, the Department for the Economy. We have been trying to increase connectivity in Northern Ireland, yet despite all the evidence that supporting access to air services to other parts of the world helps economic growth, we have found an unwillingness to spend money in that area. One of the reasons that the Department has given is, “We don’t have any direction from a Minister. It’s not a decision that the civil service can make.” My hon. Friend the Member for South Antrim (Paul Girvan) has lobbied hard on this issue because Belfast international airport is in his constituency and there could be huge opportunities there.

Petroleum licensing is another example. There are huge opportunities in Northern Ireland but we cannot even get consultation on licences that could create hundreds of jobs in mining and oil exploration in rural areas in the west of the Province, where high-paid jobs are hard to come by. Money for broadband has been reprofiled because, despite the fact that £150 million was made available, decisions have not been made about spending that money. Hopefully, with the start of the money that has been allocated this year, we will find that the programme will be accelerated over the next number of years.

We allocate money to Tourism Ireland, and many people query whether that money is used effectively. When people travel into Belfast international airport, what hits them in the face when they come off the plane? An advert to send tourists who arrive at that airport down to Dublin—and our money pays for it. Yet there is no scrutiny of whether that is an effective way of spending public money to promote Northern Ireland.

I could go on with lots of other examples, but that is the kind of vacuum we are left with because of the lack of scrutiny not just of the general allocations of money across Departments but of the specific allocations within Departments.

[Maria Caulfield (Lewes) (Con)]

As members of the Northern Ireland Affairs Committee, we hear at first hand, nearly every week now, about how the lack of an Assembly and an Executive is affecting ordinary people, whether it is money not being spent on healthcare, schools where parents are having to bring in toilet rolls, or the Police of Service of Northern Ireland not knowing whether it can pay its staff at the end of the month. This is impacting the real lives of real people.

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[Sammy Wilson]

The hon. Lady mentioned education. In the year for which we are now finalising the accounts, additional money was secured for education. That money was meant to go to frontline services in education—that is, the classrooms—but the Department of Education decided to allocate it to finance the education authority, which was running a deficit, and was leaning on schools that were running a deficit in their budgets. That is the kind of thing that would never have been allowed to happen if we had a functioning Assembly and a Minister rather than civil servants making these decisions. It is not just about the total amount of money that is allocated; we also have to be looking at how effectively that money is spent, and we do not have the means for doing that. If it cannot be done in Northern Ireland, then there should a means for doing it here.

The Secretary of State gave an explanation why she had allocated 70% of the expenditure to Departments for next year as opposed to the usual 45%—because there might be heavier expenditure at the beginning of the year than at the end of the year, and she therefore wanted to make sure that Departments did not run out of money. Given that most of the revenue expenditure has to be spread over the year because a lot of it goes on salaries and so on, I do not think that is a credible explanation. I think the Secretary of State knows full well that we will not have an Assembly up and running by June, because she knows what the problem is. She has talked to Sinn Féin and she knows the attitude of Sinn Féin. I suspect that 70% has been allocated so that she has the flexibility maybe even to bring the final budget to this House in September or October rather than be forced to bring it early in June because there is no Assembly up and running.

That brings me to one of the reasons why I believe we are having to do this again this year. Many people have said that it is about Brexit, or the fact that Sinn Féin cannot get agreement with the DUP about certain matters like an Irish language Act. Having said that, I do not know how anyone justifies tens of millions of pounds of expenditure on an Irish language Act at a time when we have the pressure on budgets that we have now. Certainly, it should not be a priority for expenditure or getting Stormont up and running again.

I welcome the additional money. For the information of the hon. Member for Paisley and Renfrewshire North (Gavin Newlands), this is not a result of the Barnett formula not being properly applied. The Barnett formula is properly applied. Barnett formula allocations for Scotland and Northern Ireland are based on the expenditure decided for Departments in England. If there is an uplift in areas of spending in those Departments, it also comes to Scotland, Northern Ireland and Wales.

This is money over and above the Barnett formula. Scotland has experienced that on occasions, but we did not complain about it. It is wrong to suggest that this is a result of the Barnett formula not being properly applied. Some of the changes to the allocations that we are authorising for 2018-19 are a result of Barnett formula applications during the year, with additional money put into the budget since we discussed it last June having to be spent by Departments.

This is a challenging budget. The real reason why Sinn Féin are not prepared to enter the Assembly is that they do not have the political courage to make the decisions that a budget of this nature would require them to make. There is plenty of evidence for that. First, why did the Assembly collapse? Despite what people say about the renewable heat scheme and everything else, the Assembly would have collapsed anyhow, because the then Finance Minister had not even presented a budget to the Assembly. If it had not been presented to the Assembly, the Government would have collapsed because there would have been no money to spend. Why did he not present a budget two and a half years ago? Because he knew that there were hard decisions to be made, and he was not prepared to make them. His party was not prepared to go through the Lobby to back those decisions because it was looking over its shoulder at People Before Profit, which had taken votes off it in its heartlands in West Belfast and Londonderry.

If that was the problem then, it is still the problem today. Sinn Féin do not want to have to put their hand on the tiller and guide Northern Ireland through the difficulties of budget considerations. Governments here and in Scotland and Wales have to do that, as indeed do Governments in the Irish Republic. Sinn Féin would rather strut around the Irish Republic telling people that if they vote for Sinn Féin, the Government down there will not have to impose austerity measures. Of course, the one way to expose the nonsense of that claim is by Sinn Féin having to make decisions about budgets in Northern Ireland, but they do not want to do that.

That means that we have not been able to look at new areas of expenditure, and that is significant. Members have talked today about new pressures. For example, there is greater pressure on school budgets because of rising populations and a change in the distribution of populations, which sometimes expand and sometimes decline. There are greater pressures on mental health, which my hon. Friend the Member for Strangford (Jim Shannon) talked about. This budget reflects the decisions and priorities of the Executive of more than three years ago. Indeed, if we look at the heads of spending for 2018-19 and 2019-20, we see that it is a cut and paste. There are no new things, because that is not possible.

We pass legislation here to allow top civil servants and permanent secretaries to take decisions that could redirect some spending, but civil servants—wrongly, I think—have refused to use those powers on many occasions. It is frustrating that they have not been prepared to make decisions on even simple things, because they fear that if something goes wrong, they will be called before the Northern Ireland Audit Office or finish up on the front page of the Belfast Telegraph. It is not a great way of doing it, but at least some of these decisions should be made by civil servants.

We have a lack of scrutiny of the overall budget and of the detail of the budget, and we have no mechanism for deciding new priorities, all of which we are going to need in a dynamic economy. That is why this process is so damaging to Northern Ireland. It is damaging politically because it allows people simply to opt out of the political process. They entered that process, stood for election and got elected, but then they do not do their job.

I know there will be debates about how to do this, but I think one of the ways of pushing into doing their job properly those who are holding back our ability to do the job—we are doing it, and doing it very poorly, here today—is to make it quite clear that the stark choice is either to have local rule or to have rule from London. I believe that would be a huge embarrassment to Sinn Féin. It has been able to avoid that embarrassment because the Government here have refused to make such a decision.

We want to see devolution and we want people to be pressurised into going back into Stormont, however difficult that may be. Let me just say to the House that it is difficult. Look at the difficulties the Government have with the disparate views they have on their own Back Benches in this place. It is an indication of the skill that was used by politicians in Northern Ireland that, for many years, we ran a coalition that included people who would very happily sit on the Government Benches as well as people who might be uncomfortable sitting beside the Leader of the Opposition on the Opposition Benches because they are even to the left of him. We ran a coalition on that basis, but it has now collapsed, and following its collapse, this is an inadequate way of doing business for Northern Ireland.

Northern Ireland Budget (Anticipation and Adjustments) (No. 2) Bill

Sammy Wilson Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 5th March 2019 Commons Chamber

[Gavin Newlands]

It is a pleasure, Mrs Laing, to see Renfrewshire represented in the Chair.

I rise to speak very briefly at this stage, although perhaps not quite as briefly as the Secretary of State. Despite some disagreement from the Northern Ireland branch of my fan club on the Benches behind me, I stated clearly on Second Reading the SNP’s view, at least, of the commensurate funding that Scotland would be able to receive as a result of the additional Northern Ireland budget allocation.

It should be noted that the Scottish Parliament and the Welsh Assembly have just simultaneously debated, voted on and passed a motion calling on the Prime Minister to rule out no deal and to extend article 50. That is the first time that this has happened in the history of devolution. But I digress—I just wanted to put that on the record.

I made my point, notwithstanding the comments by the hon. Member for Belfast East (Gavin Robinson), on the clear and distinct issues present in Northern Ireland, which I wholly accept. But no Scottish MP worth their salt, or Scottish Secretary for that matter, would accept this situation without at least trying to ensure that Scotland received proportionate funding, and it is not cheap to attempt to do so. I outlined my reasoning at length on Second Reading, so I will curtail my remarks at this stage. Suffice it to say that the extra funds announced for this budget, which would amount to £400 million if Barnettised, could amount to 4,100 police officers, 4,500 nurses and 4,400 junior doctors. At this time when the Scottish Government are doubling childcare funding, an extra 5,000-plus nursery teachers could be paid for by Barnett consequentials from all the £140 million, or an entire borders railway with the £106 million change. Or, taken in the round, the extra £3.4 billion flowing from the DUP’s confidence and supply agreement, in addition to the new moneys, could be transformational. It could fund another three Aberdeen bypasses or nearly three additional Queensferry crossings, should we ever need such things.

[Sammy Wilson]

I am just wondering why so many people would want to bypass Aberdeen that it needs three roads round it.

[Gavin Newlands]

I pass no comment on Aberdeen, but this road has been a long time coming. The Scottish Government have just ordered it; thankfully there was an opportunity to say that. Sadly, even though the £3.4 billion could cover the cost of almost three Queensferry crossings, it would not even cover the cost of two Chris Graylings.

Clearly, we are unable to pursue this issue any further during the passage of this Bill, but the Scottish Secretary, the Chancellor and the Northern Ireland Secretary can rest assured that pursue it we will.

Northern Ireland: Security Situation

Sammy Wilson Excerpts

1st reading: House of Commons
Monday 21st January 2019 Commons Chamber

[Sammy Wilson (East Antrim) (DUP)]

The current Taoiseach, Leo Varadkar, has overseen a deterioration in cross-border relations because of his belligerent behaviour towards Britain during the Brexit negotiations. Notwithstanding the hysterical reaction of the Irish Government to Britain’s decision to leave the EU, can the Secretary of State assure us that, not just at a police level but at a political level, security co-operation continues?

[Karen Bradley]

All I can say is that relations between the Police Service of Northern Ireland and An Garda Síochána are at an all-time high and continue to be good. They work towards the same ends: to thwart the terrorists wherever they may be operating.

Northern Ireland (Executive Formation and Exercise of Functions) Bill

Sammy Wilson Excerpts

2nd reading: House of Commons
Wednesday 24th October 2018 Commons Chamber

[Owen Smith]

rose—

[Sammy Wilson (East Antrim) (DUP)]

rose—

[Karen Bradley]

I will give way to the right hon. Member for East Antrim, but then I must make progress.

--- Later in debate ---

[Sammy Wilson]

Does the Secretary of State accept that while there may be some grandstanding today by Members who want to force into the Bill policies that they particularly want to be implemented in Northern Ireland, against the wishes of the people of Northern Ireland, the Bill will not enable any public official to pursue such policies, regardless of whether an amendment goes into the Bill, because the Bill is not designed to give the powers that would rest with politicians and public representatives to civil servants, and, indeed, it would be unfair to do so?

[Karen Bradley]

The Bill will enable civil servants to act within the law as it stands today. It will not give them the ability to become lawmakers and to change the law. That is a very important point.

--- Later in debate ---

[Nigel Mills (Amber Valley) (Con)]

I am grateful to be called in this important debate and am happy to support this Bill. The measures within represent a sensible compromise, but this is like trying to find the least bad of all the really bad options. We would all agree that by far the best situation would be to have an Assembly and to have Ministers of the Executive in place taking such decisions, but that is not the situation that we are in, and it is not one, based on the dates set in this Bill, that I suspect we are going to see in the next six, eight or even 10 months. The question now is about what we should do here for the people of Northern Ireland to try to get important decisions taken to deliver public services as best as they can be delivered, to try to improve the economy in Northern Ireland, and to try to improve the lives of ordinary people.

There are no easy options here, and the most extreme would probably be to appoint direct rule Ministers from this Parliament to take such decisions. That would lead to sensitivities in the relationship with the Irish Republic and the nationalist community, which is sadly not represented in this House—at least not by any nationalist MPs. That is a radical decision that the Government are not keen to take. However, we could have been pursuing other possibilities to try to get a bit nearer to a situation in which we could take some of the decisions that need to be taken. The Northern Ireland Affairs Committee published a report that discussed how we could at least have a shadow Assembly or allow the committees to meet just to get some local engagement and local scrutiny to allow some decisions to be taken from here that have some level of accountability in Northern Ireland.

[Sammy Wilson]

The hon. Gentleman is making some interesting suggestions as to how there could be some democratic accountability even in the absence of a functioning Executive. However, just as Sinn Féin has blocked the formation of the Assembly and the introduction of direct rule, it has also made it clear that it would not even accept that level of accountability. That is where the real problem lies. Sinn Féin—the boycotters—have been pandered to for far too long.

[Nigel Mills]

I accept what the right hon. Gentleman says and do not pretend that any of the solutions are easy. Such issues were tested by the Select Committee, but it would have at least been worth trying to see whether we could have some sort of cross-community committees or assemblies. Even if Sinn Fein boycotted them, hopefully the other parties in the Assembly would have been willing to attend. There is a real prize here. There are decisions that need to be taken that would be of great benefit to Northern Ireland, but they will not be taken, even with the powers we are discussing here. If we could have found a compromise that got at least some of those things moving forward, it would not in any way have been a perfect solution, but it would have been better than what we have here.

--- Later in debate ---

[Dr Andrew Murrison (South West Wiltshire) (Con)]

It is a pleasure to speak in this Second Reading debate. May I start by expressing my admiration of and gratitude for the Secretary of State’s energy and perspicacity in trying to achieve a settlement in Northern Ireland? Whatever regrets we have about the situation in which we find ourselves, we are all united in our admiration for the energy that the Secretary of State has applied to this process. I sympathise with her, because in the actions she is taking she is trying to sail between Scylla and Charybdis: on the one hand, she must do nothing that would impede the restoration of proper democracy and the devolved settlement in Northern Ireland; on the other, she must do what she knows to be best for the people of Northern Ireland. I shall comment largely on my perception of Northern Ireland lagging well behind where it should be, and increasingly so. I shall express in unequivocal terms my fears about what that might mean in 10 months’ time, if we are no further on.

On Monday, I had the great pleasure of visiting Belfast with members of the Northern Ireland Affairs Committee. For the first time—to my very great shame—I visited the Royal Victoria Hospital, where I talked to deeply committed and dedicated professionals who are right at the top of their game and who work there doing their very best for the population of Northern Ireland. I must say to the Secretary of State that I came away deeply depressed, because it is clear that Northern Ireland is not getting what it deserves. In comparison with the population of the rest of the United Kingdom, it is lagging significantly behind on key healthcare indicators. We heard that morning from service users, particularly in the fields of mental health and cancer care—key healthcare areas. Were their experiences to be replicated in our constituencies, we would be very upset indeed. The reasons are complicated, but we are left to conclude that the absence for nearly two years now of Ministers capable of taking decisions is a significant part of the piece.

We are now to complicate another 10 months of potential delay, with no clear solution following that. We could call another election but, as has been alluded to already, without good will on the part of both the principal parties in this matter, it is likely as not that we would get pretty much the same outcome. I have detected no particular enthusiasm or appetite for an Irish language Act, which is the biggest roadblock to the process. I get a lot of people asking, “Why don’t I have the same healthcare expectations as people over the other side of the Irish sea?”, but I do not get angst expressed to me about the inclusion of an Irish language Act. It is self-evident that the vast majority of people in Northern Ireland simply want to get on with their lives. They want to have expectations across a range of public sector functions that at least approximate those that exist in Great Britain. It is a failure for all involved if they do not achieve that sort of approximation. We have a devolved settlement, so there will always be difference—of course there will—and I guess we should celebrate that, but the people of the United Kingdom have a legitimate expectation that, broadly speaking, outcomes will be similar right across the piece. That is not the case in Northern Ireland, and it is getting worse. We have to work out a way to deal with that.

I welcome the Bill, but it should have been introduced to the House well before now—incidentally, that would have given us more time to consider it—because I am afraid that the situation we are currently in was predictable. We have simply lost time. In so far as it is a straightforward, simple Bill that will achieve the outcomes that the Government want, I very much welcome it, although I would have gone much further. The need to go much further is in the guidance. I hope the Secretary of State has some sense from the House that we are likely to support her in the development of the guidance in the months ahead.

I assume that the guidance is the same as that which was given in draft form to the helpful Northern Ireland Office officials who briefed the Northern Ireland Affairs Committee a few days ago. Getting hold of a copy today was quite difficult, but if it is more or less the same, I have been through it and must say that it is cast in extremely anodyne terms. It refers to decisions made by the Executive who have now folded, and to the draft programme for government and its 12 exciting outcomes, which are of course not outcomes at all but aspirations cast in the most anodyne terms imaginable.

In the weeks and months ahead, the Secretary of State will be faced more and more with Northern Ireland slipping backwards compared with the rest of the United Kingdom, unless some fairly significant policy decisions are made. I do not know the extent to which, on the basis of this Bill, it is safe for the Northern Ireland civil service to make some of those decisions, because some of them are really quite complicated, but they need to be made if we are to see key public services restored to the level at which they should be.

[Sammy Wilson]

Does the hon. Gentleman share my concern not only about the policies that the civil servants will not implement—indeed, the Bill would not give them the powers to implement them anyhow—but that civil servants may even avoid the day-to-day functions of government, because the Bill does not instruct them to do anything? It simply says that it does not prevent them from doing anything. Given the inertia, caution, procrastination and lack of decision making that we have seen so far in the Northern Ireland civil service, there is no guarantee that any decisions will be made, even with the Bill.

[Dr Murrison]

With respect to the right hon. Gentleman, he is a little harsh on the Northern Ireland civil service, because of course civil servants will act as civil servants always do. They are not politicians, they do not do policy and they are acutely aware, all the time, of legal challenge. I take my hat off to David Sterling and his people for doing what they have managed to do since January or March 2017, but the fact is that key decisions have to be made. We have already heard about the distinction between policy and decision making; some of the decisions are policy, but some are simply nuts-and-bolts decision making. I fear that there will come a point when the line will be crossed, and the Secretary of State may very well come back here to seek further guidance from this House on what she can legitimately do to prevent the backsliding to which I have referred and hopefully start making progress on some of these key public service areas.

Reading through the guidance, I am heartened because it seems to give the Secretary of State really quite a lot of scope. She will have heard—and, I suspect, will continue to hear in the balance of this debate—a great deal of support from across the House for her being pretty proactive in issuing guidance to the civil service so that it can do what is necessary to advance the day-to-day living experience of the people of Northern Ireland. In particular, I note the enjoinder in the guidance that “particular weight” must be given to the avoidance of

“serious detriment to the public interest, public health and wellbeing”.

In response to the point made by the right hon. Member for East Antrim (Sammy Wilson) a few moments ago, I will reflect briefly on one example, which I mention as an exemplar more widely applicable to the whole piece. At the Royal Victoria Hospital on Monday, we heard from a group of cardiologists—people who are leaders in their field—how the inability to share data with the rest of the United Kingdom was proving to be an impediment because there was a failure of a particular decision that had to be made by a Minister. That has clear implications for healthcare in Northern Ireland, because if Northern Ireland cannot compare and contrast its performance and what it is doing with other parts of a similar healthcare service, it cannot really make improvements. That is just a small example of the kind of thing that we are talking about today which I hope will be covered in the guidance. I urge the Minister to ensure that the guidance that she issues is much more specific than that laid out in the framework published today. I think that she will end up having to issue really quite a lot of guidance, and I urge her very strongly indeed to push the limits as far as she possibly can.

I was particularly taken with the remarks of the hon. Member for Rochdale (Tony Lloyd), who speaks for the Opposition. It is actually quite rare in this place that there is much in the way of consensus. Mercifully, reaching it tends to be easier in matters to do with Northern Ireland than in most public policy areas. The hon. Gentleman’s remarks, which I very much welcome, were exceptionally positive in regard to our sense that the Secretary of State really will have to issue guidance that is as prescriptive as possible, within the scope of the Bill, in order to move things along in Northern Ireland. That is the sense that I got from the hon. Gentleman’s remarks.

I do not wish to go on too much longer, but I want to mention another point. In the Brexit context—there is always a risk that a debate like this will be overtaken by the issue of the moment—a great deal is going on in Northern Ireland at the moment that is of a unique nature. I have mentioned healthcare, but much of the economy in Northern Ireland is pretty unusual and has a uniqueness that needs to be reflected by those who are currently dealing with Brexit. Of course, it is a perfect storm in a sense, because not only is there a uniqueness regarding the various sectors; there is also a lack of an Executive—of a body advocating specifically for Northern Ireland. Now, the Government will say, “Well, it’s for us to negotiate in Brussels”, which is perfectly true, but we know full well that Scotland and Wales are separately making their points to our interlocutors in Brussels. That is not the case for Northern Ireland.

--- Later in debate ---

[Gavin Robinson (Belfast East) (DUP)]

It is a pleasure to follow the hon. Member for South West Wiltshire (Dr Murrison), the Chairman of the Northern Affairs Committee. In his response to the Bill, he was, as always, considered and thoughtful. He highlighted the lack of ambition that we would ultimately like to see for good governance and for democratic decision making in Northern Ireland.

At the commencement of these proceedings, the Secretary of State made an announcement of condolences to the noble Lord Caine. May I take this opportunity, personally and on behalf of my party colleagues, to extend our condolences to the noble Lord Caine and to his mother following such a bereavement?

There has been a lot of talk so far about the Bill, and there is at least one level of consensus: it is what it is. It is not ambitious. It does not deliver good governance in Northern Ireland. It does not compel decision making in Northern Ireland. It provides no legislative vehicle for issues that require legislation in Northern Ireland. We understand and accept the position that the Secretary of State finds herself in—the constitutional barrier that she is wrestling with—but she knows that we are of the view that this place should be taking a much more interventionist approach towards the affairs of Northern Ireland and that, in that sense, the Bill is an opportunity missed.

I do, however, want to convey my appreciation to the officials from the Northern Ireland Office who have engaged directly with me and with my hon. Friend the Member for Belfast South (Emma Little Pengelly) in our consideration of this Bill. I spent much more time with them than I had planned to, and I think they spent much more time with me than they wished to. I think it fair to say that, while we are where we are, it is not ultimately where they or we would wish to be in terms of how we see this Bill.

But one thing is certain: we should not be here. We should not be yet again considering how we deliver for Northern Ireland in this Chamber—it should be happening at Stormont. Although we have thus far today considered this issue only lightly, Sinn Féin Members need to end their boycott of good governance, of democracy and of participation at Stormont and here at Westminster. They refuse to allow the re-formation of an Executive; they refuse to see a meeting of the Northern Ireland Assembly; and they refuse to take their seats in this House. They have shown no sign that they recognise the concerns of the people of Northern Ireland. They show no sign that they are impacted by the lack of decisions being taken in Northern Ireland. They show no sign that they are concerned about people on ever-increasing waiting lists and ever-increasing housing lists, or about the extension of our mitigation on universal credit and welfare reform that needs to be renewed next year. They show no sign of concern whatsoever.

[Sammy Wilson]

Does my hon. Friend agree that it is not fair that those Members of the Northern Ireland Assembly who do want to address those issues on behalf of their constituents are being punished by the Sinn Féin lock-out at Stormont? Until it is grasped by the Northern Ireland Office and by the Secretary of State that the responsibility lies at the door of only one party, and unless either the system for establishing the Executive of Northern Ireland is changed or it is made quite clear that sanctions will be imposed, this situation will continue, because there is no penalty on Sinn Féin.

[Gavin Robinson]

My right hon. Friend is entirely right. The majority of the 90 Assembly Members who have been elected to serve their constituents put themselves forward because they believe in public service, not stagnation. They are not like a puerile child participating in a game, not liking the rules, recognising they are not scoring goals, picking up the ball and walking off the pitch.

[Gavin Robinson]

That is an incredibly fair point to make, and I intend to address it later on. There has been a dereliction of duty. The opportunity to serve the people is not being taken by one party and one party alone. As it holds out for its purely partisan and narrow agenda, everyone else in Northern Ireland suffers.

No one should be under any illusion about our approach to these issues. In October last year, Arlene Foster, our party leader, indicated that she would seek the establishment of the Executive immediately and that if the Assembly created did not deal satisfactorily with the outstanding issues that had been raised as a stumbling block for progress, it should be brought down again in six months. She said, “Put me to the test.” She said, “Let us maturely and rationally reflect on the outstanding issues that you have; you can consider the outstanding issues that we have, and if we can’t resolve them, then bring it down—but at least try.” Before Arlene Foster sat down from making that speech, Sinn Féin had ruled it out. It had ruled out a restoration of the Executive, where Brexit and every public service that was of interest to the people of Northern Ireland could be considered.

As I reflect on these matters, standing here again to debate a Northern Ireland Bill that should not be necessary, I am reminded that the Secretary of State’s predecessor, the right hon. Member for Old Bexley and Sidcup (James Brokenshire), said in September 2017 that nine months without a Government to steer policy had left the country with “no political direction” and left critical public service reform wanting. He continued:

“In the continuing absence of devolution, the UK government retains ultimate responsibility for good governance and political stability in Northern Ireland as part of the United Kingdom and we will not shirk from the necessary measures to deliver that.”

That was only 13 months ago, yet here we are. He famously talked of a “glide path” to direct rule. Frustratingly, this is a never-ending holding pattern. It is not in the interests of democracy and not in the interests of good government.

The Bill has been described—kindly—as a “limited measure”. It has been described by my constituency predecessor as

“a sticking plaster on a broken leg”.

It has been described as a poor substitute for democratically elected politicians in Northern Ireland making decisions that affect the people they serve. It is through that prism that we have to consider the Bill.

The Bill does not provide certainty. It contains no certainty on decisions. It does not provide compellability. There is no compulsion on civil servants to make decisions that impact the people of Northern Ireland—decisions that need movement—but on key policy areas, there is no compulsion to do so. There is no progress on the 200-plus decisions that have lain in abeyance among the range of Departments since the suspension of the Assembly.

[Sammy Wilson]

Is the worrying thing for my hon. Friend the fact that many of those 200 decisions are sitting there not because of the court decision, but because of the inertia that exists in the Northern Ireland civil service? The Bill will not make a blind bit of difference to the fact that some senior members of the civil service—not all—will not make a decision to get up in the morning if they think they might get some criticism for it.

[Gavin Robinson]

I am grateful to my right hon. Friend for his comment. I think it fair to say that there are a range of views on this issue, and some accord with the description that he has outlined. There are civil servants in the Northern Ireland civil service who have been incredibly courageous during the time that we have not had democratically accountable Ministers.

But there is the rub—the Bill relies solely on the willingness of a senior departmental official who is impervious to direction and impervious to the views of politically mandated, democratically elected representatives and who can decide whether or not they wish to proceed. The guidance is there, but if we go through that guidance fairly, I think we could decide that something is within the public interest or outwith it at our own discretion, and that is a fault.

Northern Ireland Budget (No. 2) Bill

Sammy Wilson Excerpts

2nd reading: House of Commons
Monday 9th July 2018 Commons Chamber

[Sammy Wilson (East Antrim) (DUP)]

I welcome the Bill tonight because it secures the money we voted to Departments to keep them running until the end of July and assures them that the full funding will be available until the end of the financial year.

We accept, however, that this is not a satisfactory arrangement. Issues such as budget allocations, how the money is spent and the monitoring of how it is spent all require detailed examination by politicians—that is how we get the accountability that should attach to any budget—but we can see from attendance tonight that there is no massive interest in the House. Indeed, there is a certain irony. For the past year, sitting in the Chamber, I have seen Member after Member stand up and say how concerned he or she is about the Brexit negotiations and the impact that Brexit would have on Northern Ireland, the impact that it would have on the Good Friday agreement, and the impact that it would have on community relations and the people of Northern Ireland. However, when it comes to the budget for the people of Northern Ireland, they are nowhere to be seen. I do not think that that irony is lost on the people of Northern Ireland. The pseudo-concern that we have heard from the Labour party during the Brexit debate represents little more than an opportunity to score political points and, conveniently, to use Northern Ireland as a means of arguing against the referendum result and the people who wanted to take us out of the European Union.

[Ian Paisley]

Labour Members who are so interested in whether there should be a hard or a soft border could have put on record their concern about the number of officers who have been recruited to the Northern Ireland border service and Her Majesty’s Revenue and Customs to deal with these issues, and how those officers have been recruited, but hark! I hear nothing from the Labour Benches.

[Sammy Wilson]

There are plenty of other aspects of the budget that could have been related to the concerns that Labour Members have been expressing. In that regard, Scottish National party Members are no different—they too have expressed great concerns.—and the same applies to the Liberal Democrats, who are nowhere to be seen. At least some Labour Members are present, but none of the rest has turned up.

This is not a satisfactory arrangement. I think I should use some of my speech to talk about how we got here, why we are here, and who is responsible for the fact that our budget is being dealt with in this way in the House of Commons.

[Lady Hermon]

Will the right hon. Gentleman give way?

[Sammy Wilson]

I am sure that the hon. Lady will have an opportunity to make her point later, when she makes her own speech.

This is the second occasion on which the Northern Ireland Budget has come to this House. On the first, in an act of political cowardice the then Finance Minister in the Northern Ireland Assembly, Máirtín Ó Muilleoir of Sinn Féin, refused to bring a budget to the Assembly. Sinn Féin has always liked to hold its hand out for British pounds, but it does not like to make the hard decisions that must be made when it comes to spending money in a responsible way. No budget was brought to the Northern Ireland Assembly in November 2016 when it should have been, and, shortly after that, Sinn Féin collapsed the Assembly.

That was very convenient, because Sinn Féin did not have to make the hard decisions. They wanted the post and the responsibility—they wanted all the kudos that was involved in being head of the Department of Finance— but they did not want to make the hard decisions. It was convenient that the Assembly collapsed—or that Sinn Féin collapsed the Assembly—because that meant that Sinn Féin did not have to put their hand up for a budget.

I have been in that position. When one has to allocate money across Departments, there will always be people who are disappointed, and there will always be criticism. One will be told that one should have prioritised this and should not have given money to that, or that, magically, one should have produced for everyone money that just was not there, which, of course, is not always possible.

The budget came to the House of Commons on the first occasion because of Sinn Féin’s failure to produce a budget; on this occasion, it has come here because Sinn Féin made it impossible for anyone else to produce a budget. Having collapsed the Assembly, Sinn Féin then refused to return to it, appoint Ministers, and enable the Assembly to make decisions about how money was spent and allocated and to present a budget for the people of Northern Ireland. Sinn Féin preferred to engage in a game of blackmail: they would not allow the Assembly to be set up unless all the parties in the Assembly agreed to their agenda, before they were even in the Assembly. Sinn Féin knew that that agenda would have been impossible to deliver had it come to votes in the Assembly—even some of the nationalists would not have voted for it—so what did they do? They sat outside and said, “We have a veto. Under the rules that currently govern Northern Ireland, if we are not included in the Executive that Executive cannot sit, and that Executive will not sit until we get our way and are given promises that the policies we want will be implemented.”

Oddly enough, it seems that Sinn Féin are holding up all political progress in Northern Ireland so that the 4,000 Irish speakers in Northern Ireland can see Irish road signs and can be spoken to in Irish when they telephone about their rates bills, although they can all speak English. We are being held to political ransom. We have Irish broadcasting and Irish schools, and £197 million is spent on all kinds of Irish-medium education. We spend money on Irish festivals, and we allow Irish street names if enough people in the area want them. Despite all that, one of the reasons we are discussing this budget here tonight is that because 4,000 people in Northern Ireland claim to be Irish speakers, Sinn Féin say that unless an Irish language Act makes Irish an official language—which would mean hundreds of millions of pounds of expenditure—they will not allow any progress.

The hon. Member for Paisley and Renfrewshire North (Gavin Newlands) said that he did not want to become involved in an argument about who was right and who was wrong, and who was responsible. However, if he looked at even the surface of what is happening in Northern Ireland, he would be able to point the finger of blame—and, by the way, the blame does not lie with the Government at Westminster, although I know that the favourite activity of the Scottish National party is to blame them for everything. The blame for this should not be laid at the door of the Government at Westminster; it should be laid at the door of those who know that they have a veto, who have used that veto irresponsibly, and who are quite happy for this budget to be pushed through the House of Commons today without the level of scrutiny and accountability that would have been possible in a Northern Ireland Assembly.

[Jim Shannon (Strangford) (DUP)]

Sinn Féin often ask about the Irish language and the funding for it, but very few members of Sinn Féin can speak Irish. Is my right hon. Friend as amazed about that as many of the rest of us are?

[Sammy Wilson]

It does not surprise me at all. Sinn Féin have introduced this hurdle because they do not want the Assembly to be up and running anyway. I shall say more about that in a moment. Sinn Féin prefer the political vacuum, for a reason. The Secretary of State must bear that in mind, as must the hon. Member for Rochdale (Tony Lloyd), who said that he hoped that this was not part of some creeping direct rule. There was a contradiction in his argument, because he then said that we were moving towards a crisis, and that there must be pressure for action. He was right.

There are decisions that need to be made, and we need a process for that. It is clear, however, that one of the parties required to set up the Northern Ireland Executive is determined not to be in that Executive. Its members prefer to sit on the Terrace of the House of Commons, lobbying Ministers and Members, rather than coming in here, and rather than doing their job in Northern Ireland as well. We see them all the time, sitting about this place collecting millions of pounds for not doing their jobs, and at the same time complaining about the outcome of the process. They have pointed the finger at the DUP, and one of the arguments they have made is that my party and those who asked the Government to implement this budget are supporting Tory austerity. However, I can say that we have probably done more to alleviate the impact of austerity in Northern Ireland than Sinn Féin or all the other parties put together, because, as my right hon. Friend the Member for Belfast North (Nigel Dodds) has pointed out, the confidence and supply arrangement that we reached with the Government was what resulted in the additional resources the Secretary of State has referred to becoming available to the Northern Ireland budget.

I know that the hon. Member for Paisley and Renfrewshire North would have liked to have had the same benefit. I thought the SNP was opposed to outsourcing, but it appears that it wants to outsource the negotiations on its budget to the DUP, saying to us, “You go and do a deal with the Government and then we will reap the benefits of it.” I think the Government may well be prepared to make the benefits of that kind of confidence and supply arrangement available to the Scottish National party if it is prepared to back the Government in the same way as we have done.

In fact, we had the situation last week when the SNP was so determined to annoy Members of this House that it called votes when we were in the Smoking Room cheering on England to get them through to the quarter-finals—they are now in the semi-finals. What were SNP Members doing? They were doing their best to disrupt our night of enjoyment. They can hardly expect a confidence and supply arrangement from anybody in this House when they behave in that way.

I accept that this is a difficult budget. In cash terms, it is a flat budget. The amount available to Government Departments in Northern Ireland is no different from that in the previous year, and that does present challenges. It presents further challenges when the allocations are based on decisions that the Assembly made nearly two and a half years ago. It set certain priorities, wanting to see over the next five years an extra £1 billion put into the health service, and of course that meant that, since the cake had to be sliced up, other Departments would find that their budgets faced cash reductions.

While this has presented challenges, those challenges have been reduced somewhat due to the additional money obtained for the reform of the health service, the additional money for frontline services in health and education, and the additional money for broadband, infrastructure projects, mental health and areas of severe deprivation. Indeed, some school budgets, or parts of school budgets, have been protected because breakfast clubs, after-school clubs and so on have been able to have money allocated to them from that severe deprivation funding.

[Lady Hermon]

I want to pick up on the points made earlier by the right hon. Gentleman’s party colleague the right hon. Member for Lagan Valley (Sir Jeffrey M. Donaldson) about schools in his constituency, because I must add to those concerns my worries about school budgets in North Down. The right hon. Gentlemen has called on the Government to boost health and education, and the Government in turn have delivered that through the confidence and supply arrangement, so how on earth can it be that budgets in North Down for primary and special care schools are so stretched? Please will the right hon. Member for East Antrim (Sammy Wilson) explain that to the principals and parents in my constituency?

[Sammy Wilson]

It comes back to the point I was making about the allocation of the budget and the way in which decisions are made. First, decisions are based on historical decisions made by the Assembly. Secondly, unfortunately, I have to say—this is why the current system is not acceptable and has to be changed—that when allocations are made by civil servants, we cannot be sure that the finance available will always go to what the public might want to prioritise, because bureaucrats see different priorities. For example, I had a long discussion with the permanent secretary in the Department of Education when we found out that some of the additional money that was available for schools and was meant to go to frontline schooling actually went to finance the deficit of the Education Authority. By the way, after the amalgamation of five education and library boards, that authority was still spending as much on administration as the five boards had spent, even though the idea was that one authority would lead to rationalisation and therefore cut costs.

When civil servants are making these decisions, they will often have different priorities, because they see things from the point of view of administration and bureaucracy, and sometimes that will be more important to them than what politicians would see as the priorities. Politicians are being confronted on a day-to-day basis by parents with youngsters with special needs, teachers who are teaching bigger classes, and headmasters who are having to say to parents, “We need you to provide extra money for books, paper and everything else.” Therefore politicians will often have different priorities.

But here is the point: in the absence of devolution, we do not have people in place who are perhaps tuned into those things as priorities. That is one of the disservices that Sinn Féin has done to the people of Northern Ireland. In its pursuit of its ideological goal involving the Irish language, it is prepared to see bad budgetary or spending decisions, or decisions that do not reflect the priorities of the public.

[Paul Girvan]

The common funding package used for education has shown up glaring inequalities. There are primary schools in my area that are allocated £2,400 per pupil, yet there will be another sector of education that receives up to £15,000 per pupil. This inequality should not exist. I would have no issue with such policy decisions if we had an Assembly in place, but without an Assembly in place to make decisions, we cannot make those changes.

[Sammy Wilson]

This goes back to my point about the Irish language. Those inequalities often exist because of the preference given under the Good Friday agreement to Irish language legislation, which has consequences in terms of small Irish language schools. Some secondary schools have opened with as few as 14 pupils, which is very costly and has led to the kind of result that my hon. Friend raises. That cannot be changed by a civil servant. That is a political decision, and that is why we need an Assembly up and running in which such decisions can be made, meaning that we can look at funding inequalities and decide whether we should change the priorities.

What is important is that we have a means by which the budget can be spent. The Secretary of State said that there is no difficulty with allocation, but there is a difficulty, as I have explained, with accountability, and the issue with the Department of Education has already been raised by two Members. Different Departments have reacted in different ways, however, and I am pleased that the Department of Health has allocated the additional money it obtained as a result of the confidence and supply arrangement to frontline services. Thousands of people across Northern Ireland will benefit from the allocation of that money to reduce waiting lists for elective surgery. Some people were facing two-year waiting lists, but will now find their waiting time reduced. The results can therefore depend on how Departments react.

Although the Secretary of State has said there is no difficulty in allocating the money, there is a difficulty in accountability, and I take issue with her on that. I have had conversations with permanent secretaries, and difficulties are emerging in the allocation of spending. For example, the permanent secretary in the Department for Infrastructure told me recently that he would have difficulty making a decision about the York Street interchange, for which money has been allocated in the infrastructure budget. He argued that he would not be able to make a decision on that. We have already seen the difficulties over getting the broadband money spent in Northern Ireland, and we know that there are decisions to be made on health reforms. If the health budget is going to be sustainable in the long run, health reform is required, but in order to spend some of the money in the budget on that reform, a change in the nature of some hospitals will be required, including the movement of some services and the concentration of services in other hospitals. According to the courts, those decisions cannot be made by civil servants; they have to be made by Ministers.

The same applies to the school estate. One way of getting more money into the classrooms is through the rationalisation of schools. We have additional school places in Northern Ireland, but in some areas there is a shortage of school places and in others there is a surplus. That requires decisions to be made about school closures and about opening new schools but, again, those decisions need to be made by politicians. I think the Secretary of State is wrong when she says that we do not have any difficulty when it comes to allocation. We are heading towards that difficulty now.

At the other end of the spectrum, I am already in discussions with officials in certain Departments and someone has already mentioned the number of assistant chief constables who are on temporary contracts. They cannot be given permanent contracts because no one is there to make that decision. Applications for a whole range of disabled parking bays are queuing up for a decision, but there is no one there to make those decisions. That might not be an important issue in the global sense, but it is important for people with mobility problems who cannot park their car outside their door. Then there is the issue of school minibuses. Directives have been issued in Northern Ireland to say that teachers need to have a public service vehicle licence to drive those minibuses, even though teachers elsewhere do not have to have them. Many schools have had to give up providing sporting and other after-school activities. It requires a Minister to make decisions on those issues as well. I could go on.

[Sir Jeffrey M. Donaldson]

My right hon. Friend, and the Secretary of State and her Minister, might be interested to know that we have been waiting several years for the introduction of a weight limit in Hillsborough village in my constituency. Heavy vehicles are damaging the conservation zone and the historic Georgian buildings in the centre, but the village cannot be afforded the protection it needs because we now need legislation, which requires decisions at a ministerial level. Hillsborough cannot be given the protection it requires, even though Historic Royal Palaces has done a wonderful job in restoring and introducing new facilities at Hillsborough Castle. The whole situation is having an impact on many people in Northern Ireland.

[Sammy Wilson]

I am sure that Members on these Benches could give lots of local examples of decisions not being made on things that matter to individuals and communities because we do not have a local Administration.

I would say to the Secretary of State that we want devolution—we are a devolutionist party and we believe that it is the right thing—but there is increasing cynicism in Northern Ireland about devolution, and the longer we go on without a devolved Administration, the more that cynicism will grow. This is not a case of putting the blame on all the parties and saying that they all need to get together. The pressure has to be put on those who are holding up devolution, the ones who will not go through the doors, the ones who are happy to sit here and sponge off taxpayers, and the ones who are happy to sit in Northern Ireland and complain about no decisions being made while at the same time being the very ones who refuse to allow a situation to develop in which those decisions could be made.

[Nigel Dodds]

My right hon. Friend is making some powerful points, which I am sure that those on the Treasury Bench are listening to carefully. Just as a marker about decision making might be put down in Committee, such a marker is clearly being put down now, not just by the representatives of Northern Ireland in this House but by business in Northern Ireland. We have heard a lot of talk about business in relation to Brexit. The chambers of commerce, the Institute of Directors and the CBI, which the Secretary of State visited recently, are all saying that it is time to get decisions made in Northern Ireland. That was made clear in a meeting with business representatives that we had two weeks ago. They said, as we are saying, that they want devolution, but in the meantime, there cannot be a situation in which part of the United Kingdom is left without government for 15 months.

[Sammy Wilson]

That is one of the reasons why I think we will need some intervention. The hon. Member for Rochdale (Tony Lloyd) made the point quite forcefully that Northern Ireland had faced far bigger and more difficult situations than this in the past. I remember when I was a member of the Executive, as was the Member for North Down—[Interruption.] I mean North Belfast. I am sorry. My right hon. Friend the Member for Belfast North has taken over North Down as well.

I remember when we faced the devolution of policing. Nothing was more controversial in Northern Ireland than the devolution of policing, especially as it was going to be devolved to an Assembly that contained people who had supported the killing of policemen and women. We were prepared to work at that, however, in order to get an agreement and to get policing devolved to Northern Ireland.

I think that that illustrates the point that this party has been flexible all along when it has come to making devolution work. However, no amount of flexibility is going to get us over a situation in which one party, which has a veto, does not want to make the tough decisions, does not want to be associated with any compromise around Brexit and does not want to have to deal with its murky past when it comes to legacy. That party is determined to use its veto to keep the Assembly from sitting to keep the Executive from being formed. A former leader of our party recently gave a lecture when he was appointed visiting professor at Queen’s University, and he made the point that perhaps we are coming to a time when, if the Government are squeamish about direct rule, we have to look again at the rules of the Assembly that allow a veto for parties that are prepared to use it indefinitely and damage even their own constituents in pursuit of their own ideology.

I believe that we will come back next year and have this same debate. We will again have to discuss a budget for Northern Ireland that will be based on decisions made nearly four years ago—as it will be by then—that no longer have much relevance to the changing needs of the Northern Ireland economy. Sadly, that budget will reflect that position, rather than being an up-to-date budget that has been debated by people in Northern Ireland and decided by politicians there.