Northern Ireland Troubles (Legacy and Reconciliation) Bill

Stephen Farry Excerpts

Consideration of Lords amendments
Tuesday 18th July 2023 Commons Chamber

[Chris Heaton-Harris]

Well, perhaps it is a case of better late than never. These are Government amendments, but I am the first to admit that amazingly good ideas sometimes emerge from the Back Benches of both Houses of Parliament.

The amendments could also prohibit certain types of legal proceedings—including civil cases, applications for compensation as a result of miscarriages of justice and appeals against conviction, which rely on the 2020 ruling—from being brought or continued. To align with the other prohibitions in the Bill, the continuation of pending claims and appeals in scope would be prohibited immediately from commencement. There is a specific exemption in the Bill for certain types of ongoing criminal appeals, where leave to appeal has already been granted or where there has been a referral by the Criminal Cases Review Commission by the time of the Bill’s commencement. The exception would not allow for the payment of compensation flowing from the reversal of such convictions, and I want to make it clear that the amendment would not lead to the reinstatement of convictions that had already been reversed.

There are other amendments relating to criminal justice outcomes. The Government’s primary focus has always been on establishing one effective legacy body seeking to provide better outcomes for families. We also want to ensure that organisations such as the Police Service of Northern Ireland, the Police Ombudsman for Northern Ireland and the judiciary are able to concentrate their capabilities on more present-day issues.

It remains our view that the independent commission, when established, should be the sole body responsible for troubles-related cases, but we are also mindful of the concerns raised about the ending of the ongoing processes, especially given the current legislative timetable and the expected timeframe for the commission’s becoming fully operational. Our amendments would therefore ensure that ongoing criminal investigations, ombudsman investigations, the consideration of prosecution decisions, coronial inquests, and the publication of reports will continue until 1 May 2024, when the commission will become fully operational. We hope that the additional time provided will allow such cases to conclude their work, while ensuring a smooth transition between the ending of the current mechanisms and the commission’s taking on full responsibility for outstanding legacy cases.

[Stephen Farry (North Down) (Alliance)]

Does the Secretary of State recognise the huge concern felt by families who do not think it is practical to expect all inquests to be completed by next spring? Some have not even begun, and it is feared that a two-tier approach will emerge. Owing to a number of factors, some cases scheduled by the former Lord Chief Justice will have started and may well finish, while others have not even had a chance to start. Notwithstanding what the Secretary of State has said, people do not believe that the new process will have the rigour of an inquest.

[Chris Heaton-Harris]

Our amendment provides until 1 May 2024 for inquests to conclude. Since the Bill’s introduction, expeditious case management of inquests in order to reach “an advanced stage” has resulted in the overloading of a system that was already struggling under incredible pressure, causing delay and frustration. We hope that the amendment will ensure that resources will now be focused on completing those inquests that have a realistic prospect of conclusion in the next year. The Government expect troubles-related cases that do not conclude via the coronial process by 1 May 2024 to be transferred to the fully operational ICRIR, led by Sir Declan Morgan as chief commissioner-designate, through the use of provisions already contained in the Bill, and I believe that those provisions will allow him to maintain the relevant level of investigation.

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[Ian Paisley]

I thank the hon. Member for that, but he should be very clear that I did not actually mention solicitors. I said a legal practitioner, because they are not a solicitor. He wants to draw that out, as he has done by his comment, but he will now see that it is someone very specific. People will be able to look up the website of that person, who makes snake-oil sales in this case in that particular way, and it is wrong because such a person should recognise the outcome of the justice process.

In the Republic of Ireland there is no legacy equivalent. In the Republic of Ireland there is no equivalent for the right to access historical legal papers. There is no equivalent in the Republic of Ireland for ombudsman inquiries into Garda Siochana activity. In the Republic of Ireland there were requests by this state for 116 warrants for extradition to bring known terrorists back over the border to face prosecution in our courts, but only eight of those warrants were ever pursued and delivered on. More importantly, in the Republic of Ireland the possession of weapons in Northern Ireland is not regarded as a criminal offence and is not regarded as a terrorist offence. The possession of weapons in Northern Ireland, according to the Republic of Ireland, is a political offence, and people cannot face prosecution for a political offence.

I think Members can see some of the problems. The idea that we have a view from another state that all that is happening here should be dragged to court somewhere else by us on some sort of high moral ground is absolutely shameful. The Republic of Ireland has threatened His Majesty’s Government to take them to court on this issue, and they should have a good, hard, long look at themselves, because if this issue of legacy is going to be resolved, it will have to be resolved by both the north and the south, as well as by the United Kingdom Government, properly looking at this issue and resolving it.

I would go so far as to say that the Republic of Ireland actually has a duty to address these issues. Do Members want to know how many murders have a cross-border element to them? Of the 3,700-odd terrorist offences, or the almost 3,700 dead, almost 600 have a cross-border element. My hon. Friend the Member for Strangford (Jim Shannon) mentioned his own personal circumstances and the cases involving his family, where the terrorists fled back over the border. That is where weapon hoards were stored, and where the Republic of Ireland gave sanctuary to those people who were involved in almost 600 murders—of Roman Catholics and Protestants—in Northern Ireland. Remember that there were more Roman Catholics murdered by the Provisional IRA in Northern Ireland than there were Roman Catholics who were done to death by any other organisation, including the state. It is important to remember that the biggest group of people who get off the hook here is the Provisional IRA, and we should be guarding strongly against that.

I want to put on the record the comments of Senator Michael McDowell, the former Justice Minister of the Republic of Ireland. Once again, the Senator has made it clear that, in the Republic of Ireland—he wrote this in The Irish Times—

“the Irish Government of which I was a member took the decision that further investigation and prosecution by An Garda Siochana of such historic offences was no longer warranted or justified by reason of the greater interest in ending the Provisional campaign and all other political violence in Northern Ireland.”

Of the Irish Government, he concludes:

“And so, as far as this state was concerned, a line was drawn across the page of historic Provisional IRA criminality in Northern Ireland.”

If Members want to look for immunity from justice, look no further than 60 or 70 miles from where I live, which is across the border in the Republic of Ireland, where they granted immunity.

Of course, in relation to the Government here, my hon. Friend the Member for Belfast East (Gavin Robinson) made comments about the on-the-run letters and about the decision by those who support the Belfast agreement to let the prisoners out of jail, and all of those things turned justice on its head. I think we have to recognise that this is not going to be an easy fix. But I can tell you one thing, Mr Deputy Speaker: what the Government are proposing today will not satisfy people on the Government Back Benches and it will not satisfy the victims in Northern Ireland. I would appeal to the Government to think again.

[Stephen Farry (North Down) (Alliance)]

I will start by putting on the record my appreciation for the efforts of the Government, in particular Lord Caine, over the past year, in trying to improve the Bill with the amendments that were tabled in the House of Lords. It is, however, a matter of regret—this will probably be a common theme across the Northern Ireland parties—that the Bill remains fundamentally flawed and not fit for purpose. Even at this eleventh hour, it is important that we say to the Government—that is what we hear from most stakeholders in Northern Ireland—that they should withdraw the Bill. It is not wanted, and it is not going to work and achieve what the Government think it will. Even at this stage, I urge a rethink. Do not take the Bill over the line and end up with a situation where we have something that will not deliver for anybody in that regard.

The Bill is not fit for purpose in the sense that it is not compliant with article 2 of the European convention on human rights. It does not have the support and confidence of stakeholders in Northern Ireland, whether that is the political parties—it is rare that we are so united, but we are on this point—the different victims groups, whose voices are particularly to be listened to; or the views of virtually every independent expert, such as the Northern Ireland Human Rights Commission, which has a statutory role to give its views on such matters. They are all deeply concerned about the Bill and do not believe it will deliver or that it is legally competent.

I want particularly to focus on immunity, as that is one of the core areas of debate, and on the Government amendments, which I will shortly be opposing. The concept of immunity is seen as being fundamentally unjust by victims. Most victims appreciate that they are unlikely to see their day in court and a successful prosecution of the culprits who took away their loved ones, but they do not want to have that hope extinguished. As long as there is hope, people are clinging on to that. That is the real fear, and it is on that pivot that people become particularly emotional. That is at the heart of the comments that the Government are hearing from victims across the political spectrum.

The concept of immunity is also seen as a de facto amnesty, which has its own implications. First, it goes against emerging caselaw at European level, but it also carries certain connotations that will weigh heavy on certain people. Let me frame this for a moment from the point of view of some people who have worked in the police, the Army and other security services over the past decades. I want to start by reflecting that the vast majority of people who served did so with honour, and with the intent of upholding the rule of law and protecting the entire community. There is a clear distinction between them and the terrorist, in that the former did not set out to do harm but rather to protect the community, whereas every day the mission of the terrorist was to do harm. That is a clear distinction.

The concept of immunity, particularly for those who were based in Northern Ireland, almost reinvents the whole nature of their service. They say, “We don’t need immunity because we didn’t do anything wrong. Why are we given this abstract concept? Where our colleagues did wrong, they should face justice because that is the rule of law, and the justice system is among many other values that they were serving.” This process turns that entirely on its head, and almost puts them at the level of the terrorist. That said, justice should be blind, and where there are issues to be followed through, whatever legacy mechanisms we have in place, that should proceed without favour to anyone.

That brings me to a wider point about the genesis of the Bill, and this is a fundamental reason why there is this lack of confidence. The Government cannot escape from the rationale set out at the beginning and the need to protect certain elements who are clamouring for protection against vexatious claims, who I think were generally more GB-based than in Northern Ireland as such. We have the comments from the previous Secretary of State, the right hon. Member for Great Yarmouth (Sir Brandon Lewis) when he was introducing the Bill and its pretext of giving protection to veterans who had served, in particular in the Army. Again, I stress that many other veterans do not want that protection.

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[Chris Heaton-Harris]

Let me say to the hon. Gentleman, with the greatest respect, that he has his particular view of what happened following Stormont House, but I believe that history says something a bit different.

Herein lies the issue for us all. It is a question for the party opposite, and it is a question for all Members in this place: if not the Bill, then what? There is no agreement following Stormont House. Families have gone for years, for decades, without answers to what happened to their loved ones, and I believe that the Bill is the right way forward at this point. History has been revisited in many different ways when it comes to how agreements might have worked in the past.

[Stephen Farry]

May I just point out that “New Decade, New Approach”, which was authored by this Government through one of the Secretary of State’s predecessors, contains a specific commitment to implementing Stormont House? As recently as January 2020, it was the explicit policy of the Government to deliver it. It is there, in black and white, in “New Decade, New Approach”.

[Chris Heaton-Harris]

The hon. Gentleman is right, but that became unworkable and impractical because the political consensus simply was not there when it came to legislation.

The hon. Member for Foyle asked what would happen if someone lied to the ICRIR. Well, that person simply would not be granted immunity: he would lose that immunity as a result of the new offence in the Bill.

Northern Ireland Budget (No. 2) Bill

Stephen Farry Excerpts

2nd reading
Monday 10th July 2023 Commons Chamber

[Chris Heaton-Harris]

I thank my hon. Friend for his question, and acknowledge his long-standing interest in this area. He does great work on the Select Committee. I know that he has read the Institute for Fiscal Studies report published on 21 April, which stated that Northern Ireland spent similar amounts to England and Wales per pupil in 2022-23. Spending per pupil in Northern Ireland grew by 11% in real terms between 2018-19 and 2022-23, after having fallen for almost a decade. I will try to get him the exact details; if I cannot do that by the end of this debate, I shall write to him with them, but we have been following this issue, and he has been prodding us along all the way.

I was talking about the budget’s departmental allocations. As in the 2022-23 Northern Ireland budget, the allocations were developed after extensive, sustained engagement with the Northern Ireland civil service. The Bill will mean that Northern Ireland Departments have a total resource budget available of £14.2 billion, and a capital budget of £2.2 billion. That includes the Northern Ireland Executive block grant, set at the 2021 spending review and through the subsequent operation of the Barnett Formula, and income from regional rates.

I emphasise—I will no doubt state this a number of times, in this debate and elsewhere—that the sum available for this budget would have been the same sum provided to the Executive for 2023-24, if they were in place.

I recognise that the Northern Ireland Departments, in the absence of elected Ministers, will face difficult decisions, but it is necessary to deliver a balanced budget. These decisions rest with the Northern Ireland civil service, but I will continue to work with them to protect frontline services in Northern Ireland.

[Stephen Farry (North Down) (Alliance)]

I fully concur with the Secretary of State about the importance of the Executive being restored. The other point he was making was about ensuring that the Budget is balanced. Does he recognise that there is a certain disjoint between the current guidance that the civil service has and the expectations placed on it in balancing the Budget? They cannot touch the statutory areas, which means that the non-statutory areas are being overly targeted. Also, the Departments are overspending because they cannot live within the budget controls. Unless some action is taken over the remainder of this year, we will see a massive overspend, which will create a bigger hole and a bigger challenge down the line and lead to deeper cuts.

[Chris Heaton-Harris]

The hon. Gentleman makes a wise point, and I know he follows this issue closely. We are working closely with the Northern Ireland civil service on this matter. As he alluded to, when the UK Government took over the responsibility overall, we inherited an overspend for 2022-23. A reserve claim of £297 million was provided to balance last year’s Budget. Despite projections of an overspend throughout the year and the UK’s agreement to the reserve claim, the final budget figures from 2022-23 show a slight underspend of £40 billion, so it came in at £257 million. I know that those big sums of money will still cause great concern over the budgetary issues in Northern Ireland, but it does demonstrate how monitoring rounds and monitoring spending bring about amazing behaviours for budgetary purposes. I would like to think we can work together in this space in the future. However, the one thing I do know—it has been demonstrated time and time again—is that that work would be better done by a locally elected Executive, with Ministers accountable to the people who elected them.

As I mentioned, with agreement from the Chief Secretary to the Treasury, my right hon. Friend the Member for Salisbury (John Glen), flexibility has been granted on the repayment of this reserve claim, which moves the repayment into the next financial year, not this one. Before I conclude, I will briefly run through the Bill clause by clause.

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[Stephen Farry (North Down) (Alliance)]

It is somewhat opportune to follow the hon. Member for Belfast East (Gavin Robinson), as before I talk about the role of the UK Government and the real budget crisis that we are facing, I have to say that, listening to him, the House would almost get the impression that the DUP was not an actor in the current debacle that we are facing and that it is a passive actor or a commentator on the sidelines. DUP Members talk about frustration, people sitting on their hands and nothing moving forward. I remind him that we are now more than four months on from the Windsor framework being concluded, and still we have no Executive and Assembly restored. Indeed, we are more than 16 months on from the Executive being brought down and still we have no progress being made.

I would be the first to recognise that an Executive would not be a silver bullet for our problems—there will still be a major budget crisis whenever an Executive is restored—but having an Executive is fundamental to providing some type of framework, a strategic approach, democratic accountability and transparency and proper scrutiny of what is happening. That allows us to plan ahead. It allows decisions to be taken on a cross-departmental basis. It allows us to protect areas that are crucial for the medium and long terms. Those are all things that an Executive can and should be doing.

In Northern Ireland, the frustration is not over the pace of what is happening and whatever fix awaits us around the Windsor framework; it is over the absence of an Executive. The business community—every single business organisation—trade unions, the community and voluntary sector, health professionals and education sector people are all saying that they need an Executive and an Assembly back, and the DUP is sitting in defiance of that strong message from those people at the coalface. Every time they say, “Here’s what the Children’s Law Centre are saying” or, “Here’s what the education sector are saying”, they are selectively quoting because all of them are saying, “Get back round the table and work together for the good of the people of Northern Ireland.”

There is a real danger here. The DUP, in its own terms, is out there to try to save the Union because it believes that the Windsor framework undermines it. That is not my opinion; that is the DUP’s analysis of the situation. In trying to save the Union, in its own terms, it is in danger of killing the Union. It is saying, “We need to restore devolution only when there is a solid foundation in place.” Through its boycott of the Assembly, it is shaking Northern Ireland’s very foundations to their core. It is in real danger of doing real long-term damage not just to its own cause of the Union, but to the social fabric of Northern Ireland—our ability to have a functioning economy, to have a proper functioning health service that delivers for people and to have a proper education system. That is what is at stake at present. I urge the DUP to reflect seriously on its current route.

I turn to the UK Government. It has to be said that there is a certain air of unreality to what we are discussing today and indeed to the Bill. I recognise that it has fallen to the Secretary of State to intervene with both the written ministerial statement and this legislation, but we are not on a viable and sustainable pathway in terms of our public services and economy, budget management or governance. Something has to give and give very soon. The cuts themselves are illogical and counterproductive and they will bring long-term damage. We need to see reform and investment, but what we see is a spiral of cuts and a burning platform.

Northern Ireland is falling behind on a range of indicators. Members regularly highlight problems in the health service across Great Britain, for example, problems with waiting lists, access to GPs and access to dentists. Northern Ireland is struggling on every one of those issues and not just a bit more—it is significantly worse. We are falling behind on educational attainment and productivity. Whenever we look at the context on the island of Ireland, the contrast is ever stark. Life expectancy in the Republic of Ireland is now two years ahead of Northern Ireland; 20 years ago, it was the other way round. Things like that are happening through this decline.

On budget management, we see a major mismatch between what the guidance under the Northern Ireland (Executive Formation etc) Act 2022 says and the expectations that the Government are placing on civil servants. It is limited and contradictory. The civil service cannot initiate new policy and cannot tackle areas that are statutory responsibilities. That means that non-statutory areas have been disproportionately targeted, with cuts on things such as early intervention and prevention: actions that are vital not just to address opportunities for people but to avoid much steeper costs downstream that will have to be picked up in due course. Those costs may be with us for many years to come thereafter.

The Departments cannot live within the current control expectations placed on them. The Northern Ireland Departments collectively are overspending to the tune of £100 million a month. So one of three things will have to happen over the next few months. We may see the status quo continuing, which will lead to a massive overspend by the end of the financial year, which will be kicked into next year or subsequent years and become an albatross around Northern Ireland’s neck for many years to come.

Alternatively, we may see the Government recognising that this is unsustainable and intervening through a more formal version of direct rule, trying to balance the budget over the remainder of the year. That will mean even deeper cuts because trying to manage cuts over a six-month window is much more difficult than over 12 months—and doing it over 12 months is bad enough. If they go down that route, that will bring major carnage. By far the most benign scenario involves the Government and Northern Ireland parties agreeing on some form of a national package linked to a restored Executive. Of course, that negotiation would be much better done from the place of a functioning Executive, but whether it is before, after or during that reformation process, that discussion has to happen. I dare say that, from the Government’s point of view, the prospect or reality of a restored Executive will be a precondition for anything moving in that regard.

I welcome what the Secretary of State has said about the Alliance party’s proposals. We are talking about a process of stabilisation, which can become a platform for wider transformation. We cannot make Northern Ireland sustainable from that burning platform. So we have to invest to save and we need a genuine, multi-year plan. A certain degree of discipline from all the Northern Ireland parties over many years will be required to ensure that they abide by a programme for Government, if that is to be delivered. I imagine that there will be a degree of conditionality in what the Government will say in that particular regard. My party is certainly up for those discussions over the next few weeks. We welcome what the Secretary of State has said today and look forward to engaging with him over the next few weeks in that respect.

We also have the governance crisis, which I already touched upon. We need the Executive and Assembly back to provide that coherent structure for managing the situation. With a functioning Executive, we will be in a much better position to have those discussions around not just the financial package but the Barnett formula and addressing that squeeze.

I welcome what the Chair of the Public Accounts Committee, the hon. Member for Hackney South and Shoreditch (Dame Meg Hillier), said about the Northern Ireland Audit Office. What she said reflects the importance of respect for the independence of that body. I would add that the same points and logic extend to the Northern Ireland public service ombudsman. I concur with what the Scottish National party spokesperson, the hon. Member for Gordon (Richard Thomson), said about the Government’s response to clarify section 75 duties and exactly how they have been taken forward in relation to the Budget.

Although I have perhaps said a few harsh things, there is a positive future for Northern Ireland if we can get this right. Northern Ireland is a great place, but it needs a Government to deliver. With a coherent Government, and with parties genuinely committed to working together, we can push ahead with invest to save. We can see what opportunities lie on the island of Ireland for certain economies of scale. On a purely economic and social level, we can do things without entering into the wider political and constitutional debate. We can address the cost of division—the duplication that comes from running parallel services. We can potentially see the reform of the Barnett formula, which will give us a proper needs-based platform from which to proceed. We can invest in prevention and support our community and voluntary sector.

Over the next few weeks, there are important decisions to be made. If people do not step up and if we do not get this sorted, the future of Northern Ireland will be bleak. If we can get it right, the future is hopeful. I want to optimistic about that future.

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[The Minister of State, Northern Ireland Office (Mr Steve Baker)]

I am likewise most grateful to hon. and right hon. Members for their contributions this evening. I am most grateful, too, that the House again recognises that a Bill such as this is a responsible, but regrettable, step that we need to take as the UK Government to ensure that the delivery of public services can continue in Northern Ireland.

There are no easy decisions in the budget for anyone—not for us as the UK Government, not for Northern Ireland civil servants and not for a future Executive. We recognise that and we know that those decisions will not be going anywhere when an Executive returns.

It has become apparent to me that I and my right hon. Friend the Secretary of State may have been misunderstood on this point, so I want to be perfectly clear: on their return, an Executive will face this stark budget and the difficult decisions that follow from it. But we are also perfectly clear that the right people to be taking those tough decisions are locally elected Northern Ireland Executive Ministers. It should not be the UK Government or civil servants plugging the decision-making gap. It is only through the return of Ministers in Northern Ireland that the vital reforms that so many hon. Members have referred to can begin to take place to put public services on a much more effective, efficient and sustainable basis, fit for the demands and opportunities, and indeed the previous advancements in technology, particularly in medicine, of the 21st century.

Let no one mistake what is needed: reform to the health system, to make the most of decades of improvements in healthcare through specialisation; reform to drive down the waste that comes from a divided education system, perpetuating divisions that would be unlawful once children moved from education into work; and reform to foreshorten the shocking delays in Northern Ireland’s justice system and its appalling cost to taxpayers at turn after turn. Only through reforms and more will the public have the services they need and deserve.

What is the prize? In this debate, if I may say so, we have heard two competing visions for Northern Ireland: a vision of Northern Ireland standing with its hand out to the Republic of Ireland for subsidy, and a vision of Northern Ireland standing with its hand out to Great Britain for subsidy. This Government have a better vision than that. We have a vision for a strong and confident Northern Ireland standing on its own two feet, with a balanced budget, underpinning sound public services that have been reformed and are effective, and—yes—are properly audited.

We want to focus on the great, rich tradition and heritage of Northern Ireland’s industrial spirit, on the great commerce of Northern Ireland and on Belfast, one of the great industrial cities of this great United Kingdom. We want private capital flooding into Northern Ireland. We know that the great people of Northern Ireland are entrepreneurs who care about place and community. We know that there is goodwill all around this world for people to invest in Northern Ireland, but they are put off investing by the absence of an Executive.

[Stephen Farry]

I very much share the vision that the Minister is setting out, but, leaving aside the language around handouts and subsidies, will he at least recognise that to get from A to B the restored Executive will need a partnership with the UK Government to ensure that we can take forward those reforms?

[Mr Baker]

The hon. Gentleman makes a good point, and I shall come on to it in a moment, but I want there to be no mistake about this, either: as far as I can see from my vantage point, there is a pretty close correlation between poverty and paramilitarism in Northern Ireland. Leaving a primary school surrounded by razor wire in Shankill, I was struck by some of the murals I saw in that housing estate, commemorating and celebrating people who ought not to be celebrated. If I go to other areas of Belfast and elsewhere, there will be murals celebrating the other side.

It is time for Northern Ireland to be moving on. It is time to lift people out of poverty so that they have a better hope than the commemoration of a past that should never have taken place. No more looking back to a past that never was; it is time to look forward to a better future, founded on prosperity and sound public finances. Call me old school, Mr Speaker, but I like a balanced budget. Let us move forward.

Capital investment for a safe return from investors around the world, the rule of law, good government—the conditions are set. We have an entrepreneurial population, great skills, comparative advantage in financial services, cyber-security, advanced manufacturing and more. Crucially, we also have an institutional arrangement that, if people would only see it, is unique in all of the world: access to the UK as of right and to the EU as a privilege, UK services law and access to the UK’s free trade agreements. That is a unique set of institutional arrangements to promote Northern Ireland’s prosperity for the long run and deliver just the transformation that is needed.

It is true, as hon. Members have indicated in relation to the Windsor framework, that that comes at the price of a difficult compromise, with some EU law still in place. I confess it is a difficult compromise for me, as I have said in the past. However, we have to choose from available futures. At the moment, Northern Ireland’s future looks bleak indeed unless we get behind the reforms that are needed to balance the budget for the long run. I believe that if we do that, if we come together in unity for our good purposes for Northern Ireland, we can achieve great things.

On the quantum that is available, the hon. Members for Foyle (Colum Eastwood) and for Belfast East (Gavin Robinson) seem to be united in the idea that the budget is some sort of punishment. The hon. Member for Foyle suggested it was a tactic. I say to him that that is categorically not true. This spending envelope is the spending envelope that the Northern Ireland Executive would have faced had they not collapsed. It is not the case that we would be punishing people in the way that has been set out. To listen to the debate—

Oral Answers to Questions

Stephen Farry Excerpts

Wednesday 21st June 2023 Commons Chamber

[Mr Baker]

My hon. Friend is right, and that is the Government’s policy. We have engaged closely with not only the tourism sector but our friends in the Irish Government on this issue. I hope that we will be able to work together to ensure that there is a consistent and coherent communication strategy to ensure that tourists know they must register for an ETA and must continue to comply with the UK’s immigration requirements. I should say that whether one stays at Hillsborough castle, the Travelodge or any of the other great hotels in Northern Ireland, it is a wonderful place to visit.

[Stephen Farry (North Down) (Alliance)]

Does the Minister recognise that Ireland is marketed internationally as a single entity with respect to tourism? Does he understand that treating movements on the island of Ireland the same as any entries into the UK from the rest of the world is not fair and does not recognise the specific circumstances that exist on the island?

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[Mr Speaker]

Lancashire is welcoming it.

[Stephen Farry (North Down) (Alliance)]

Four months after the welcome Windsor framework, there is still no restored Northern Ireland Executive or Assembly, and we are facing an unprecedented budget crisis. This situation is untenable, and it is getting worse every day. The Government’s approach seems to be to wait to see whether something happens, rather than to lead from the front. So will the Prime Minister confirm that he is willing to work with the Northern Ireland parties on a financial package for a restored Executive? Will he work more closely with the Irish Government to try to drive a process, including putting reform of the institutions on the agenda, so that those who want to govern Northern Ireland can do so?

[The Prime Minister]

I thank the hon. Gentleman for his engagement with me and the Government during this process. I share his frustration, and our focus remains on delivering for the people of Northern Ireland, who expect and deserve their locally elected decision makers to address the issues that matter to them most. I thank him for his kind words about the Windsor framework and how it allows us to move forward. For many years, we have recognised the particular challenges facing Northern Ireland, which is why we have provided more than £7 billion of funding, on top of the Barnett block grant, since 2014. I assure him that my right hon. Friend the Northern Ireland Secretary remains in close contact with all the parties in Northern Ireland to clarify what more is needed, so that we can restore the conditions for Executive formation.

Belfast/Good Friday Agreement: 25th Anniversary

Stephen Farry Excerpts

Thursday 30th March 2023 Commons Chamber

[Chris Heaton-Harris]

The hon. Lady utters very wise words. It falls on all our shoulders and on those of all politicians across the United Kingdom, especially in Northern Ireland, to continue to build on the peace process and the Belfast/Good Friday agreement and what it stands for today, and to do so deep into the future, because it is so important. As we have seen this week, with the rise in the threat level of Northern Ireland-related terrorism in Northern Ireland, we cannot take anything for granted.

[Stephen Farry (North Down) (Alliance)]

The Secretary of State rightly comments on the change in the security threat assessment; I note in particular the threat relating to dissident republicans. He will also be acutely aware of the rise of activity within loyalism, with a spate of attacks in recent days in my constituency and that of my colleague the hon. Member for Strangford (Jim Shannon). Will the Secretary of State tell us a little more about the Government’s commitment to crack down on continuing loyalist activities and ensure that those people who are involved in illegality face the full rigours of the law?

[Chris Heaton-Harris]

Yes. This is probably not the appropriate time or space to do that, but the hon. Gentleman is absolutely right that there has been an increase in loyalist paramilitarism. The Government are supporting the Police Service of Northern Ireland in clamping down on it; we are well aware of it, and are working with politicians across the piece in Northern Ireland. With the Police Service of Northern Ireland, there is a lot that we can do both to decrease tensions in those communities and to make sure that those who are using criminal activity at the expense of their neighbours in their communities face the appropriate penalties.

Let me return to the Belfast/Good Friday agreement. For our part, the UK Government have continually supported and invested in Northern Ireland, its place in the Union and the Belfast/Good Friday agreement framework. We are committed to making it better still, as we have shown through the investment, support and commitment that we have provided as a UK Government to the Northern Ireland institutions through numerous successor agreements. Those agreements prove that the signing of the Belfast/Good Friday agreement 25 years ago was not the end of a journey, but a new beginning. Each of them has helped to pave the way to the Northern Ireland that we see today, whether it be the progress on policing and justice at St Andrews that enabled those matters to be devolved in the Hillsborough Castle agreement; the substantial capital funding that we provided for new shared and integrated schools in Fresh Start and Stormont House; or the investment that we provided in public services in New Decade, New Approach.

It is precisely because of the UK Government’s steadfast commitment both to the Belfast/Good Friday agreement and to Northern Ireland’s place in our Union that we have, through listening to and heeding the concerns among the people of Northern Ireland about the protocol, replaced it with the new Windsor framework, which makes fundamental amendments to it. The framework restores the delicate balance struck by the agreement and addresses problems with the protocol by removing the Irish sea border for UK goods, with a new green lane and UK internal market scheme for businesses trading from Great Britain to Northern Ireland, removing costs, paperwork and checks. Just as importantly, it gives the people of Northern Ireland a veto over new laws that apply there, in the form of the Stormont brake.

Northern Ireland has changed beyond recognition over the past 25 years, thanks to the peace and prosperity that the Belfast/Good Friday agreement has brought. Upon that foundation, Northern Ireland has built a dynamic and vibrant economy, as can be seen across the whole of the nation. Its world-leading screen and film production industry, which produced “Game of Thrones” and “The Northman” among others, has already contributed £1 billion to the Northern Irish economy. There is a fintech sector, a cyber-security sector and an engineering sector going from strength to strength in the Northern Ireland of today. Those sectors are creating thousands of highly skilled jobs, with Belfast now ranked as one of the top 25 tech cities in the world.

In the years since the agreement was signed, Northern Ireland has also taken positive steps towards greater reconciliation. I pay tribute to the work of community organisations, faith groups and individuals, and to all who have tried to foster that reconciliation, respect and mutual understanding in Northern Ireland in the journey to the agreement and over the past 25 years.

--- Later in debate ---

[Stephen Farry (North Down) (Alliance)]

It is a pleasure to follow the right hon. Member for Leeds Central (Hilary Benn). Following on from the two previous speakers, I can offer only 30 years of continuous service in elected office. [Interruption.] I am on a slippery slope.

I may be the only person in this debate who was actually present in the room when the Good Friday agreement was concluded, so perhaps I can give some of the inside track on what happened. I suppose the most relevant thing to say is that we have named this agreement the Good Friday agreement. Officially, it is the Belfast agreement, but around the world it is known as the Good Friday agreement. That largely came about by accident, because the deadline was set for 5 o’clock on the previous day—the Thursday. Members know what we are like with deadlines in Northern Ireland, but if everything had gone to time, this would have been called the Holy Thursday or the Maundy Thursday agreement, which perhaps does not have quite the same ring to it. Given some of the narrative we have had over the past 25 years, I am not quite sure whether the Julius Iscariot moment would have added to the notions of betrayal we have had from some limited quarters in those 25 years.

What happened was that the officials essentially stopped the clock for 24 hours and pretended everything was going to plan. With true civil service efficiency, however, the catering contract was only booked until 5 o’clock on the Thursday, so the delegates were deprived of food and water for the final 24 hours, although I believe some people did sneak out. At that time we were just starting to benefit from the introduction of 24 hour supermarkets in Northern Ireland, and some people did smuggle in supplies at 4 o’clock in the morning. That was the final drive towards getting this over the line, but of course, as has been alluded to, there are many other people who did the hard graft in getting us to that point. I thank the Secretary of State for commenting on my party’s role, in particular that of Lord Allardyce, our leader then.

Mention has rightly been made of those from the various Governments, but I will single out one person who made an enormous personal sacrifice in that week: the then Irish Taoiseach, Bertie Ahern. It is not widely known that his mother died at the start of that week, but he stuck with the negotiations, given their importance, and only briefly went back down to Dublin for her funeral before returning to ensure that the talks got over the line.

I will try to be measured in my comments as today is not an occasion to get into some of the deep political discussions we are currently having, although I will allude to them, I hope in a calm way. It is important to acknowledge our successes. The agreement was essentially about the three-stranded process—the internal governance of Northern Ireland and the north-south and east-west aspects—alongside the principle of consent, which is crucial for the constitutional issue, equality and human rights, and reform of policing and criminal justice. As the hon. Member for Strangford (Jim Shannon) mentioned, some people had to accept some difficult things, while others, I say with respect, decided to take a different view around issues such as the early release of prisoners.

The agreement is now the de facto constitution of Northern Ireland. When Northern Ireland was founded in 1921 there was a certain degree of controversy, and there were difficult periods during most of the existence of the previous Stormont Parliament. There was lack of equality in Northern Ireland; equally, Northern Ireland was not recognised by large sections of the nationalist community. The trade-off was, for the first time, in effect, that the nationalist section of the community accepted the legitimacy of Northern Ireland, alongside the Irish Government removing articles 2 and 3 of their constitution, in return for power sharing and equality. There was recognition of the principle of consent that Northern Ireland will remain part of the UK until and unless the majority decide otherwise. That is in essence the Good Friday agreement.

Considerable progress has been made over the past 25 years. We have a much more peaceful society now, but it is important that we recognise that that is now qualified because of the threat from both dissident republicans and loyalist paramilitaries. There is also continued paramilitary organised crime activity and control of communities. We are also a much more prosperous society than in the 1990s and earlier. If anyone who visited Northern Ireland in the ’70s and ’80s were to return now, they would be struck by the huge transformation, but that must also be qualified: while many have had new, life-changing opportunities, large sections of the population have still been left behind, with a lack of opportunity to transform their lives, and we must be seized of that.

We have also seen huge diversity in two key respects. First, a lot of people have come to Northern Ireland from other parts of the world. They have made it their home and been made very welcome. Secondly, there has been a change in conceptions of identity—a number of speakers have alluded to that—and how people see themselves. People have moved away from traditional notions of identity, in particular the two communities model. That has been seen through the growth of my party, but there are many other factors as well. It is particularly notable among young people.

There is unfinished business around victims and legacy— I will not dwell on that point today; we will debate it in due course in this Chamber—and on what needs to be done to address the Bill of Rights aspect of the agreement. We have seen large steps forward on reconciliation and moves towards a shared and integrated society, but we are not there entirely just yet. We still have large patterns of segregation in our society. Our children are still largely educated separately and too many people live in what are deemed to be single-identity areas. We have seen some progress on integrated schools and mixed housing in recent years, but there is a lot more to do. And of course, we have the current political instability, with the absence of the institutions. It is worth noting that over the past 25 years the institutions have been operational for only 60% of the time. They have been down for 40% of that time, which is not really tenable in what we would like to see as a functioning, stable democracy.

I will not dwell too much on Brexit, but it is relevant to the debate. I often say that Northern Ireland can only really work through sharing and interdependence. For that, we have needed open free borders to balance north-south and east-west flows, alongside internal power sharing. Brexit poses a challenge in that regard. There is no perfect solution to mitigating its impact, but I believe that the original protocol provided a soft landing for us. I welcome the Windsor framework in providing an even softer landing for Northern Ireland from those particular challenges. There are still no guarantees that it will work for Northern Ireland. We have to keep ploughing on and address ongoing issues as they come along, but I believe we are now in a much better place.

We need to be very conscious of the impact of what the Government may do in due course on the European convention on human rights. Even if they remain a party to the Council of Europe in that respect, if barriers are put up to people accessing their rights under the convention, that will run contrary to the agreement itself. It is worth stressing that human rights have been crucial to the reform of policing and criminal justice.

Sadly, as we approach the 25th anniversary of the Good Friday agreement we do not have functioning institutions. My party has consistently called for reform. When I say consistently, I am going right back to 1998. We strongly supported the Good Friday agreement as a new start for Northern Ireland, but even at the time we were conscious of the, shall we say, rather rigorous form of power sharing—or consociationism, to give it its formal academic term—and the system of designations, whereby people had to sign in as either a Unionist or nationalist, or by default become “another”. My identity, according to the agreement, is “another”, rather than any positive affirmation.

The agreement does allow for reform. It can and should evolve to take account of changed circumstances. Reform can take place in any context, but it is particularly vital now, with the institutions down. It remains to be seen if and when they will be restored over the coming weeks or months, or ever, depending on how we analyse the current situation. Some people will make the case that reform cannot take place in the absence of stable functioning institutions. I would say that, instead, we perhaps need to have reform first in order to get stable functioning political institutions. We can return to that tension on another occasion. In a similar way, people talk about the need to take forward reform by consensus, but if we are talking about trying to challenge the current vetoes that certain parties have and we give them a veto over the process of removing their vetoes, how likely are they to give up those vetoes? There has to be a role for the two Governments to try to drive that process forward.

There are three areas of reform that I wish to highlight. The first is on the system of designations. We need to move away from that towards a system of weighted majority on key decision making that still provides cross-community protection, but without locking ourselves into the rigorous notion of identity, which sometimes can become a bit of a straitjacket. We should move towards some form of voluntary coalition, or a coalition of the willing, where parties move in and out of government. Again, putting in place a threshold of support to ensure that any Government are cross-community in their nature would be more in keeping with how coalition Governments are formed in other places around the world. Before we even get to that type of governance, in the event of a blockage on the current restoration of the Executive, a much more limited reform could be put in place if a party decides not to take up the place of either First Minister or Deputy First Minister, to let the next party—at present my own party, but that is not the motivation—take office and see if they can establish a Government of sorts. Northern Ireland badly needs its Government restored.

Finally, I want to talk about a quarter of a century of prosperity. People have rightly said that the past 25 years have been about the consolidation of peace. We have made huge strides in that regard, but Northern Ireland is still not living up to its potential in respect of prosperity. We first need to ensure that we have political stability. We must also make sure that we invest in the various drivers of the economy and in particular skills. We have the potential, under the Windsor framework, to become a focal point of inward investment, given our advantages of dual market access. We need to make sure that that becomes a reality. I do not envy the Secretary of State’s job in that regard. A budget has to be struck for Northern Ireland in the very near future to give certainty to Government Departments. But at present, we are talking about a burning platform, and a cycle of cuts. If that is not arrested, we will look towards decline.

In that context, my party is keen to have a conversation with the Government about some form of public service transformation fund or prosperity fund for Northern Ireland, to try to break this vicious cycle. There has been a history of generous packages from the UK Government that have not been, shall we say, fully taken advantage of or have been squandered in different ways. We must learn why that has happened. We must recognise that any generosity from the Treasury to give Northern Ireland the chance to build on the past 25 years will need to come with quite strict conditions.

At present, I do not see any way forward to break through that cycle, to do proper investment, to save and transform public services, to invest in skills and to take advantage of opportunities, unless we have that particular helping hand. I appreciate that that is difficult, particularly in the current public expenditure climate, but I encourage the Government to give that serious consideration. That is difficult if there is no clear indication among the parties that they are on the brink of restoring the Assembly, but as and when that move begins, I hope that the Government will be a willing partner. The ball should be in the court of the parties to come up with a coherent plan. I am up for that challenge, along with my colleagues.

Northern Ireland

Stephen Farry Excerpts

Wednesday 22nd March 2023 Commons Chamber

[Chris Heaton-Harris]

We are maintaining that 3% of EU law. My right hon. Friend has helped to answer the question that my hon. Friend the Member for Lichfield (Michael Fabricant) posed.

There will be a binding statutory obligation in domestic law on Ministers to pull the brake when a valid notification is provided by 30 MLAs. These regulations will add a new democratic scrutiny schedule to the Northern Ireland Act 1998 to codify the brake in domestic law. The UK Government must—let me repeat that: they must—notify the EU when a valid notification of the brake has been provided by MLAs. This is an important new function for Members of the Assembly, and it is vital that they exercise this new function with the right information and expertise. After consulting with Northern Ireland parties, these regulations provide for a standing committee of the Assembly to properly scrutinise the relevant rules.

[Stephen Farry (North Down) (Alliance)]

I am treating today’s vote as a recognition of the wider package and voting for it, with the Government.

The democratic scrutiny committee is new to the Assembly and will require a lot of resources, as will the necessity of engaging with Brussels on the development of new law from first principles. Will the Secretary of State have a conversation with the Assembly about the potential for new resources, to make sure it can fully do this job?

[Chris Heaton-Harris]

I very much look forward to having that conversation with a fully functioning Assembly and Executive.

Some have described this as a consultative role for MLAs, but it is not. It is a robust power for MLAs to stop the application of amended EU rules, a power that neither the UK Government nor the European Union can override, provided that the conditions in the framework are met.

Some have claimed that the EU must have some means of blocking the brake. These regulations demonstrate that the process is entirely one for the United Kingdom. The process is firmly and unambiguously within strand 1 of the Belfast/Good Friday agreement. There is no role for any institution outside the United Kingdom, whether that be the EU or anyone else, in determining whether the brake is pulled. It will be for the UK alone—for its sovereign Government, alongside elected MLAs—to choose whether the brake is pulled.

Some also claim that the Government might simply ignore the brake. These regulations make it clear that the Government have no discretion. MLAs cannot be ignored. Valid notifications of the brake must be notified to the European Union. The Government’s actions will be subject to all the normal public law principles attached to decision making. For the avoidance of doubt, the regulations are clear that the prospect of any remedial measures by the EU cannot be a relevant factor in the Government’s determination.

It is not enough simply to allow MLAs to temporarily halt the application of a rule, but then allow the United Kingdom Government simply to override them when the joint committee decides whether the rule should be permanently disapplied. So these regulations go much further and provide a clear, robust directive role to determine whether the Government should use their veto or not. Unless there is cross-community support in the Assembly, Ministers will be legally prohibited from accepting an amended or new EU law that creates a regulatory border between Northern Ireland and the rest of the United Kingdom, except in exceptional circumstances.

Let me be clear: “exceptional circumstances” means just that. The threshold for that exception is unbelievably high, and a Minister invoking exceptional circumstances must be able to defend that decision robustly and in line with normal public law principles. What is more, a Minister must account to Parliament where they have concluded that exceptional circumstances apply, or where they consider that a measure would not create a regulatory border. This represents one of the strongest statutory constraints on the exercise of ministerial functions under a treaty ever codified in our domestic law.

Northern Ireland (Executive Formation) Bill

Stephen Farry Excerpts

2nd reading
Wednesday 22nd February 2023 Commons Chamber

[Peter Kyle (Hove) (Lab)]

I thank the Secretary of State for setting out the measures in the Bill. We do not oppose it, because we support the implementation of Dáithí’s law, and because it is still not clear what an election at this point would achieve other than hardening positions.

I am grateful to the Secretary of State for his kind words about the engagement that has taken place between us, and, as I have said in the past, I am grateful for that engagement. I hope we shall have opportunities in the future to thank each other also for working together in the interests of Northern Ireland. I am grateful, in particular, for the fact that ideas that have been suggested during the engagement between us are reflected in the Bill, and I hope that that will prove to people throughout Northern Ireland that consensus is possible across what are sometimes wide divides in politics.

It would, of course, be better if this legislation were not needed. Northern Ireland is a valued part of the United Kingdom, and restoring the Stormont Assembly and Executive should be a priority for the Government. This is the sixth Northern Ireland Bill in the current parliamentary Session, which means that the Northern Ireland Office has been responsible for one in eight of the Government’s Bills introduced during this Session. Most of those Bills have been fast-tracked and have received one day of scrutiny. That does not serve Parliament well, and it certainly does not serve Northern Ireland well.

We are approaching the 25th anniversary of the Belfast/Good Friday agreement this April. The Labour party is proud of its part in the peace process, and power sharing is an essential and hard-won outcome of that agreement. When people voted for and chose an end to violence, the institutions that were set up promised normality and prosperity. The vacuum caused by the absence of Stormont is having a profound effect on Northern Ireland, which I do not think we would accept in any other part of our country. Public sector workers are striking, but have no Ministers with whom to negotiate; civil servants are being asked to make impossible decisions about education cuts behind closed doors; and the health service has the worst waiting lists in the UK, with no clear plan to improve them. The backdrop to these issues is the fact that families in Northern Ireland have the lowest disposable incomes in the United Kingdom, and 44% of families have no savings at all.

Despite those challenges, however, there is a massive potential waiting to be unleashed. Northern Ireland is at the forefront of countless innovations, such as hydrogen buses and next generation light anti-tank weapons. The Labour party sees it as having a huge role to play in our country’s green transition, and on all my visits I am struck by the determination of people to get on with living life as it should be lived. However, the longer there is no functional devolved government, the harder it will be for these opportunities to be seized.

Dáithí’s law, which we will celebrate and debate today, is an example of what Stormont can achieve when it is sitting. Devolved government was functioning when Dáithí’s law was introduced in the Stormont Assembly in 2021, and the Organ and Tissue Donation (Deemed Consent) Act (Northern Ireland) Act 2022 passed its final stage in February last year. That should have led to opt-out organ donation being in place across Northern Ireland.

I pay tribute to Dáithí’s family, who I know are watching in the Gallery. I am pleased that you, Madam Deputy Speaker, made them so welcome, and I am also pleased that we as a House encourage the gurgling noises that we hear from a young family. Believe me, they are the nicest noises that intervene on us when we are speaking here, and we should not be offended by them in any way, because they are welcome today.

[Stephen Farry (North Down) (Alliance)]

Will the hon. Gentleman give way?

[Peter Kyle]

On that note, talking of interventions and gurgling noises, I will give way to the hon. Gentleman.

[Stephen Farry]

I must say to the shadow Secretary of State that that is a very unfortunate choice of words, but I will take them in the spirit in which they were intended. I intervene simply to make sure it is recorded in Hansard that when you, Madam Deputy Speaker, kindly referred to the family in the Gallery, Dáithí waved at you.

[Peter Kyle]

I am grateful for those gurgling noises, and the hon. Gentleman is welcome to intervene any time he likes.

I pay tribute to everyone who worked on what was a positive campaign, which received support across the communities and parties. That is a real credit to Dáithí’s family. Despite the current divisions in Northern Ireland, all party leaders worked together to ask the Secretary of State to intervene in this case so that the law Stormont passed could be implemented. It is right that he has done so, and the Labour party supports the amendments that he has put forward. I hope that in the future the Assembly can pass more laws that have widespread support and make a difference to people’s lives across Northern Ireland. This is the reality of how high the stakes are for restoring Stormont.

There is a contradiction at the heart of this Bill and the Government’s strategy for restoring the Executive. When the previous Act—the Northern Ireland (Executive Formation etc) Act 2022—was passed last year, I said that the timetable for a restored Executive was extremely short. I warned that it seemed unlikely that enough progress would have been made on the protocol negotiations for the Executive to be restored before the deadline. The Secretary of State told me that he was an optimist. We have the opposite situation with this Bill. It sets an extremely long deadline, which I support, of potentially a year for restoring the Executive as the protocol negotiations hopefully reach their end point. It is important that the Secretary of State is clear that he still has the power to call elections at any point during this period. I do not want to be pessimistic about this, but it is hard to see such a long extension as an endorsement.

Since the Prime Minister took office, the Government have followed a plan for restoring devolution by finding a negotiated solution to the protocol. That is correct. It is to be welcomed that the concerns of Unionists have been listened to and that the EU is showing more flexibility over what is possible. I cannot help but wish that the same respect had been shown to the Democratic Unionist party when it was expressing protocol concerns from within the Executive and Assembly. Had that happened, I do not believe that we would be here today.

In these late stages, I urge both the UK and the EU to strain every sinew to find a comprise that will be acceptable to all communities. As the Secretary of State knows, Labour stands ready to support such a deal. However, despite all the recent front pages and 15-minute meetings, the shape of the deal is still largely unknown to Members of Parliament. There is even confusion about whether it will be voted on in this House. I know that the Secretary of State and his Ministers have been deeply involved in these talks, so I hope they can confirm that a deal will be put before the House for a vote so that Members who represent Northern Ireland can have their say on it.

The path that the Government have not chosen to follow is the Northern Ireland Protocol Bill. Yesterday, the former Justice Secretary, the right hon. and learned Member for South Swindon (Sir Robert Buckland)—who was in his place just a short while ago—wrote an article in which he said:

“The Northern Ireland Protocol Bill has outlived its political usefulness and no longer has any legal justification”.

The Labour party has always said that that Bill would take a wrecking ball to our international reputation as a country that follows the rule of law. The Government would benefit, too, by being open about the fact that their legal advice might well have changed in recent days and weeks. Ultimately, a negotiated solution will be the only lasting solution.

It would also help the negotiations if the Government were more consistent in their defence of the Good Friday agreement on other fronts. This very week, we have had the spectacle of the Justice Secretary claiming that the Government were considering leaving the European convention on human rights in the morning, and the Attorney General confirming in the afternoon that doing so would break the Good Friday agreement. I hope that the Minister, when he responds, will confirm that the Government remain committed to all parts of the Belfast/Good Friday agreement.

Problems are piling up in Northern Ireland. This Bill does not solve all of them, but it stalls and buys more time. There are 39 key decisions that require Executive approval currently on hold. All of them are important in their own ways. People in Northern Ireland deserve such decisions to be taken locally. The Government will need to keep the next King’s Speech very light and prepare for an even higher number of Bills concerning Northern Ireland in the next Parliament if we do not get this right.

--- Later in debate ---

[Sammy Wilson]

The hon. Member should think about the issue the other way around. What would be the impact on the food industry in the Irish Republic if the EU and the Irish were so bold and so stupid as to cut off a third of the milk that they need to make cheese, butter and everything else in the factories there? There are always ways of working around these issues. There is an idea that, somehow or other, if we do not conform to EU law, we cannot trade with the EU. America does not conform to EU law; it does not have EU laws imposed on it. China does not have EU laws imposed on it, but it can trade freely, and its trade with the EU is worth billions. Of course there are ways of addressing the issue.

[Stephen Farry]

I am sure that the right hon. Gentleman would recognise that the difference between Northern Ireland and China or the United States when it comes to access to the European Union is that Northern Ireland currently has unfettered access to the European Union market for goods, whereas neither China nor the United States does. They have access, of course, but not on the same trade terms.

[Sammy Wilson]

The cost of that is fettered access to trade with GB, our biggest trading partner. When I look at the balance, the choice I would make, as a representative of Northern Ireland’s consumers and businesses, is to have unfettered access to, and supply of goods from, GB. I would rather have that than have to pay the cost of fettered trade with GB simply to have unfettered access to the Irish Republic, when we know that there are other ways around the issue of trading with the Irish Republic.

--- Later in debate ---

[Stephen Farry (North Down) (Alliance)]

I rise to support the Bill, and to confirm to the Secretary of State that he is doing the right thing in moving the election timetable; as things stand, that is probably the Bill’s sole purpose, even though the debate has ranged far and wide. That said, I welcome it as a potential vehicle, and appreciate that there are procedures to go through to enable Dáithí’s law to come into full effect. I join colleagues in paying tribute to Dáithí and his family for their campaign, and thanking the British Heart Foundation for its kind support. I also place on the record our collective thanks to House officials, who have worked very creatively over the past few days to facilitate this provision, and of course to you, Madam Deputy Speaker, and to Mr Speaker for your engagement with this issue. I am sure the teddy bear will be greatly cherished for a long time.

I think it fair to say that an election will not achieve much in the short to medium term; if anything, it could be counterproductive, especially given that we are at a delicate stage in the negotiating process. Of course, there is a mandate from May last year, which is still unfulfilled, and there are a lot of restless MLAs who are unable to do their full job. We talk about how there is a democratic deficit around EU law, but I cannot avoid making the point that by far the biggest democratic deficit is the failure to have an Assembly in Northern Ireland that can take control of devolved issues. At the moment, we have issues that are stuck, and while civil servants are doing their best to fill the gap, it is not a tenable situation. If some quarters put as much effort into addressing that as is put into creating an artificial battle over EU law, we would be in a much better place.

I respect the fact that we are at a delicate stage in the process. The intention is that if we get a deal that has cross-party buy-in, we will see the restoration of the institutions in the very near future. If we do not see that happening, we have to avoid a political vacuum being created. People will say that this Bill creates space, but space can be a positive or a negative thing, and it can also be a vacuum. If there is no restoration in the near future, we need to address reform of the institutions and, in particular, the situation whereby parties can veto power-sharing, never mind decisions that cut across communities and create difficulties. Power-sharing has been vetoed in the past and is being vetoed today, and that is not a tenable situation.

This is not about excluding any party; it is about a situation where, if a party is determined to exclude itself, that will not bring the whole show down or prevent other parties, which are willing to govern, from proceeding. However, my preference is for all parties that have a mandate to work together in Northern Ireland for the collective good of our society.

[Sammy Wilson]

Can the hon. Member explain why, in the three years when Sinn Féin excluded itself from the Executive and we had no Executive, the Alliance party not only did not propose, but refused to support any move that would have excluded Sinn Féin?

[Stephen Farry]

I am grateful to the right hon. Member for that intervention because it enables me to reinforce my point. My party has been seeking reform of the institutions since the passage of the Good Friday agreement. We have been consistent in highlighting that the particular form of coalition Government that applies is too rigid and has the potential for deadlock. I have to say that that is something the DUP also consistently pursued over those years, until fairly recently. With reference to the period in which Sinn Féin brought the institutions down, I encourage the right hon. Member to go on our website and look through the succession of conference speeches by our party leader, Naomi Long, in which she regularly called out the blockages in the system and called for reform of the institutions. My party has been extremely consistent on this point.

I do not want to spend too much time talking about the protocol, because that is not why we are here today, but obviously it is the backdrop or context for our discussion of the Bill and there are a few points it is important to reinforce. First, most people and businesses in Northern Ireland want to see an outcome, and they are pragmatic about the protocol; they understand why it exists and that it needs a measure of reform to work more effectively. In essence, they want to maximise the opportunities that come from it while addressing its deficiencies. That is where most people are in their headspace.

It is worth stressing, particularly in this Chamber and throughout Great Britain, that Unionism represented by the DUP is only one part of the equation of Northern Ireland society. Obviously, the DUP has an important view, which has to be taken into account, but it is far from being the majority viewpoint in Northern Ireland. It is important that commentators and others take a balanced view on what is being said in Northern Ireland and the interests being advanced by the people of Northern Ireland. For me and, I think, some others, the key test of the way forward is essentially that we preserve market access, both to the wider European Union market and to the UK economy as a whole. That is the key test for most pragmatic people and businesses.

[Ian Paisley]

I hate to come back to this point, but article 6 of the protocol states that there should be unfettered access to the UK internal market. Twice so far in this debate I have raised the matter of organic eggs produced in Northern Ireland. Our market is the United Kingdom, not the Republic of Ireland, yet as of Friday this week, because of EU regulations applying to Northern Ireland, our farmers cannot sell eggs to the rest of the United Kingdom. How is that helping the hon. Member’s case?

[Stephen Farry]

My first response is that I did not advocate Brexit. The protocol will never be a clean solution to these issues. There is no perfect outcome when a single market is broken up in the way that has happened. This is about managing and mitigating the fallout.

The hon. Gentleman may well be pleased to know that I recognise his point about eggs. I have written to a Minister at the Department for Environment, Food and Rural Affairs to advocate for ongoing flexibility on that. For some agricultural products, Great Britain is our main market, but for others—particularly milk and the wider dairy sector—the Republic of Ireland and beyond is the key market. There are a lot of subtleties there that we have to work through.

There is frustration at the moment about the fact that we are almost in danger of re-treading a lot of old arguments that I hoped had been put to bed, but which seem to be resurfacing. With reference to Brexit and Northern Ireland, there are essentially only three choices available to policy makers. The first is to go for a soft Brexit, minimising diversions between the European Union and the UK or Great Britain, and that would ease tensions particularly in relation to Northern Ireland. The second is to go for a hard border on the island of Ireland, which, for various reasons, is politically and economically unviable. The third is to have some form of special arrangement for Northern Ireland—we could call it a “protocol”, or we could call it something else. That involves Northern Ireland being treated differently in certain respects, which is not new; it has been part and parcel of the Northern Ireland’s entire history from the early 1920s.

People get exercised about the Acts of Union being breached, but no such arguments were made in 1920, 1949 or even in 1998 with the Good Friday agreement. In practice, a single-party Unionist Government in Belfast were more than happy to diverge from the rest of the United Kingdom whenever that was viewed as in their interests. That is before we even get to the current iteration of devolution.

I will focus in particular on the democratic deficit. As I have already said, that was not an issue prior to Brexit, when the UK had full representation at all levels of the European Union. Our biggest democratic deficit by far is the failure to have an Assembly or an Executive alongside the other institutions of the Good Friday agreement. Looking ahead, we need to drill down and see what is most important in terms of addressing the democratic deficit. I recognise that there is an issue, as did the European Union in its October 2021 non-paper.

The key issue is ensuring that Northern Ireland officials, businesses, civic organisations and political voices are able to get in at ground zero whenever a new EU law that may become applicable to Northern Ireland is being designed. As I am sure everyone in the Chamber will appreciate, the most important time to try to influence a law is before the final decision is taken, rather than while it is being ratified through the various structures, when it becomes much more difficult to change the course of action. The Chair of the Northern Ireland Affairs Committee, the hon. Member for North Dorset (Simon Hoare), made reference to Norway. Places such as Norway, Liechtenstein, Iceland and even Switzerland, which are outside the European Union but are part of the single market or within its orbit, direct most of their lobbying energy at Brussels. We do not at present have that route directly in Northern Ireland, and that is what I want to see addressed when we talk about a democratic deficit.

By contrast, the sign-off of EU law is a secondary issue. In practice, once those laws are developed, it is in our interests to go along with them to preserve dual market access. However, I have concerns about the tenor of the democratic deficit emerging from this deal. If we end up in a situation in which there is a lack of certainty about Northern Ireland’s ongoing compliance with the aspects of EU law relevant to us gaining access to the single market, that will have a detrimental impact on the certainty of Northern Ireland’s existing businesses that they can trade with the EU. That huge issue may well deter investors from coming to Northern Ireland. There is the danger of a big asterisk beside Northern Ireland, meaning that, although we have access to the single market, it will say between brackets that it is subject to whatever mechanism is used to try to cover up this non-existent issue. That very process creates uncertainty for businesses.

I do not want to see a situation whereby, in trying to fix one particular problem in the current stand-off, we end up perhaps inadvertently creating a wider problem that acts to the detriment of our current and future businesses and the future prosperity of Northern Ireland. People talk about the “sweet spot” of Northern Ireland’s dual market access, but that will only come to fruition if we do several things. We need to promote it politically and through our investment agency, but we must not create any uncertainty in that regime beyond what we currently have.

That also applies to the European Court of Justice, for example. Whenever people talk about the European Court of Justice coming in and imposing things on Northern Ireland, I say the opposite: the Court is a means to an end. If we are abiding by a certain aspect of EU law, the Court comes as part of it. If we want to put various layers in between, that is fine—nobody will object to that particular point. But the converse is that there may well be a situation in which there is uncertainty about the access of Northern Ireland businesses to parts of the single market, and in which we are wrongly blocked from access in investment decisions, procurement opportunities or things along those lines. In that context, the European Court of Justice becomes our potential ally, opening up those doors that have been wrongly shut in the face of Northern Ireland businesses. Again, it is important that we do not inadvertently throw that out and miss the wider point of what is in the best economic interests of Northern Ireland.

I will conclude on the Northern Ireland Protocol Bill. It is appropriate that the protocol Bill is parked or drifts away—or however that may happen. I trust that the Secretary of State, who has been at the coalface, will appreciate this point more than most. Progress has been made over the past number of months because, under this Government, trust has been rebuilt with the European Union. We saw that with the breakthroughs on data sharing and, just before Christmas, on longer grace periods for veterinary medicines. But we cannot build trust and, at the same time, retain the tool to break that same trust. That is not going to close this deal.

I wish the Government well over the coming hours and days—but hopefully not weeks—in concluding a deal, but that deal has to be one that works in the interests of all the people of Northern Ireland, not just those from a Unionist background, and that works for the future economy and prosperity of our region.

Omagh Bombing

Stephen Farry Excerpts

Thursday 2nd February 2023 Commons Chamber

[Chris Heaton-Harris]

I thank the hon. Gentleman for his question. I know that his party leader, the right hon. Member for Lagan Valley (Sir Jeffrey M. Donaldson), wanted to be present. The nature of giving statements, and the fact that I wanted to personally contact the families first, meant that that was logistically impossible, but I know that he and his party have supported the families’ call for the inquiry, and that the Gallagher family and his campaign appreciate that.

What the hon. Gentleman says about Ireland is true in many ways but, as I said, there is no way that the British Government can compel the Government of Ireland to do anything, in the same way that they cannot compel us. We are, however, talking to each other about a range of issues, much more constructively than we have done for a decent while. Discussions about issues such as this can be tough for both sides, but they are being done respectfully, and I know that both sides want to do the best they can by all the people we represent.

[Stephen Farry (North Down) (Alliance)]

I welcome the statement and commend the Secretary of State for his leadership on this matter. The entire community in Omagh and further afield stands in solidarity with the families. It must be stressed on every occasion that the ultimate responsibility for the murders in Omagh lies squarely with the terrorists—there should be no ambiguity about that. I ask him to respond to Michael Gallagher, who said in response to the statement in the last few minutes:

“This is an inquiry that we’ve been calling for really since 2001… We believe that there was serious security and intelligence failings and I personally believe that Omagh was a preventable atrocity, had the right action been taken in the lead-up to Omagh.”

On the terms of reference that the Secretary of State set out, as comprehensive as they were, can he confirm that if the chair feels that he needs to go beyond that, he will have the flexibility?

[Chris Heaton-Harris]

I have not heard Mr Gallagher’s words, because obviously I have been in the Chamber and paying attention to hon. Members rather than regarding my phone or checking the news, but I completely understand his point and I am sure that that information, if it exists, will come to light in the inquiry. I hope that he will be able to prove to himself, and the community in Omagh will be able to prove to themselves and the wider community, exactly what happened one way or another. The terms of reference have not actually been set yet. When I have appointed the chair of the inquiry, we will have that conversation, but I will certainly take into account what the hon. Gentleman has said.

Northern Ireland Budget Bill

Stephen Farry Excerpts

2nd reading
Monday 23rd January 2023 Commons Chamber

[Mr Baker]

The Northern Ireland (Executive Formation etc) Act 2022, which we put through, gives civil servants the clarity they need to make certain decisions. We have put those officials in a difficult position to take those decisions, and I put on record now, since the hon. Gentleman gives me the opportunity, my thanks to them for rising to the challenge and bearing with this difficult situation. I am grateful indeed that permanent secretaries and others are rising to the challenge of taking the decisions that need to be made, but it is obviously not desirable that we should be in this position. Ministers should be in post in Northern Ireland doing what needs to be done.

If the Executive are restored in time to set a Budget for next year, the UK Government will of course continue to work constructively with Executive Ministers on a sustainable Budget that delivers for the people of Northern Ireland and supports economic growth.

[Stephen Farry (North Down) (Alliance)]

Will the Minister give way?

[Mr Baker]

I will, but I will then be determined to make progress.

[Stephen Farry]

I thank the Minister for giving way. He will appreciate that in other circumstances the Executive would normally now be considering the Budget for the coming financial year and that it is important to have certainty ahead of the start of a financial year so that decisions can be made, particularly in tough times. If the Executive are not restored very soon, in order to give some degree of certainty to Departments and related agencies, can the Minister give an assurance that the Government will act in the near future to put in place a framework not just for this year’s Budget legislation but for next year’s?

[Mr Baker]

I expect the hon. Gentleman knows that clauses 8 and 9 put in place a vote on account for next year. I will come to that as it is in my notes; if memory serves it covers 65% of the spending, but I will confirm that when I reach that section. That puts in place the spending for next year, but of course we would like the Executive to return to set the Budget for next year. If they do not return, we will have to do the job, and it will be tricky; there is no getting away from that. Without Northern Ireland Executive Ministers in place, it has not been possible to take the difficult political decisions necessary to balance the Budget at this very late stage in the year, and that of course compounds the problem for next year. It is with great sobriety that I stand here and acknowledge that it is going to be very difficult. I for one would be up for the challenge of doing it, but it is not the Government’s position that we as UK Government Ministers do that; we would like the Northern Ireland parties to step up to that duty.

If the Executive are not restored on time, we will continue to work with the Northern Ireland civil service to prepare for next year’s Budget. The Government’s priority for that Budget will be to deliver a fair outcome for all taxpayers and citizens in Northern Ireland. We will work to put Northern Ireland’s finances on a sustainable long-term footing, which means appropriate consideration of a wide range of options including revenue-raising measures, as well as reviewing all spending.

--- Later in debate ---

[Sammy Wilson (East Antrim) (DUP)]

First, I too join the Minister in expressing sympathy on behalf of my party to Alex Easton, one of the MLAs for North Down, whose parents died tragically in a house fire today. Our thoughts and prayers are with him. He has lost both elderly parents today.

[Stephen Farry]

Alex Easton lives in my North Down constituency and, to echo what the right hon. Gentleman has said, the community in Bangor is extremely shocked by what happened overnight. Regardless of politics, the entire community across Northern Ireland will want to give their full support to Alex and his family at this most difficult time.

[Sammy Wilson]

I am sure that feeling will be widespread across the constituency, as Alex—a former member of my party—is well known and loved there.

I share the Minister’s view on at least one point he made at the start of the debate—namely, I would have preferred it if this Budget had been discussed in the Northern Ireland Assembly, and if decisions about priorities and spending had been made there. Unfortunately, that has not been possible because the Northern Ireland Assembly cannot function, because the very basis of the Northern Ireland Assembly has been destroyed. The Assembly has to work on the basis of consensus, but that consensus has been destroyed by the protocol. We hear ad nauseum from the hon. Member for North Dorset (Simon Hoare), who chairs the Northern Ireland Affairs Committee, that we should all be back and we cannot have any more Northern Ireland exceptionalism, but Northern Ireland has been made exceptional by decisions that he has supported—namely, that Northern Ireland no longer remains fully part of the United Kingdom as a result of the protocol.

Furthermore, even though I, my party and our representatives, as Unionists, believe that the protocol is damaging to Northern Ireland’s position in the United Kingdom and to our economy, had we been sitting in the Assembly today, we and our Ministers would have been required to implement the very thing that we say is damaging us, making us exceptional, removing us from the rest of the United Kingdom, causing huge economic burdens—I will mention some in a moment—and being a drain on the Northern Ireland Budget. Yes, we would like to see this legislation debated and these decisions made in the Assembly, but until the basis of the Assembly is restored—that is, until there is cross-community consent for decisions that have to be made—that will, sadly, not be possible and this House will be required to intervene.

It is quite right that the Minister has taken a decision. I do not criticise him for leaving it so late, because he could not have done it before. Indeed, this Budget crisis originated not in October last year, but at the very start of that year—ironically, when the Assembly was fully functioning, and we had a Finance Minister in place, an operating Executive and Ministers who could make decisions about priorities—when, for the second time, Sinn Féin failed to present a Budget that could have the support of any party in the Assembly. There have been only two Sinn Féin Finance Ministers, Máirtín Ó Muilleoir and Conor Murphy, and neither has ever been able to bring forward a successful Budget. There is this idea from the Chair of the Northern Ireland Affairs Committee that these things would be resolved if only the Assembly were functioning—but the Assembly was functioning, and this was not resolved.

--- Later in debate ---

[Stephen Farry (North Down) (Alliance)]

The Bill is essentially about giving legal effect to the Budget policy statements and the allocations made by the Secretary of State back in November. In practical terms, there is relatively little that we can do retrospectively tonight about what has already happened, but this is an opportunity to make wider points about funding, and to look ahead.

These decisions come late in the financial year, and in the absence of a formal Budget statement from a devolved Executive, bodies are essentially operating in a vacuum. That has led to some very unfortunate overspends, and has inhibited the capacity of Departments and agencies to plan ahead properly, and to use their scarce resources with maximum efficiency and effectiveness. That has real-life consequences. It is certainly my contention that having an Executive very much matters to the wellbeing of those in Northern Ireland, and to our finances. The notion that it does not really matter whether we have an Executive is a major fallacy.

Obviously, the lack of an Executive is linked to the protocol. I promised myself that I would not mention the protocol, but as it has come up, I will make a few comments on it. My party recognises that the protocol brings a degree of economic friction. It creates a new interface within these islands, and it interferes with some sense of identity in Unionism. We recognise the problems of the protocol, but my frustration is that people charged ahead with Brexit without really considering the implications for a shared, interdependent Northern Ireland, but we are where we are. As for the way forward, we want a pragmatic solution. If we turn the protocol into a constitutional test, I fear that we will not find a way forward. For us, the key issue is maintaining dual market access—access to both the wider UK market and the European Union market. There has to be some recognition that that means adherence to certain aspects of EU law and ultimately, in some respects, being in the jurisdiction of the European Court of Justice. That aside, we are extremely open-minded about where we go; as long as solutions are mutually agreed with the European Union, legal, sustainable in the long term, and work for the business community, we will give any outcome a warm welcome.

There has been reference made to the moneys involved in the trader support service. I would rather that the money was not spent on it, but it is recognised that the money does not come from our block grant; it is money that the UK Government are spending, so there is not a trade-off between that spending and what we can do ourselves in Northern Ireland.

There are clear implications for Northern Ireland from the current lack of a budgetary framework, most particularly for health. Night after night, healthcare professionals call for an Executive to be put in place to provide a framework for decisions. Everyone recognises that there is no silver bullet, and no magic money tree, but an Executive would at least provide a framework for decisions to be taken, and provide for some degree of planning, which is crucial when resources are scarce.

Reference was made to education, and the almost impossible task of finding £100 million of savings with two months to go in the financial year. I am the first to recognise that there are massive inefficiencies in our education budget, but they should be unlocked over time. Finding those savings in a short period will not work at all.

In a different universe, a devolved Executive would continue to function in Northern Ireland, and it would now be considering its Budget policy for 2023-24, rather than tidying up the end of 2022-23. Indeed, the 2023-24 Budget would be part of a multi-year Budget that allowed for longer-term planning and clarity on available resources. Furthermore, that Budget could be linked to a programme for Government, and fully aligned with a range of strategic objectives for the transformation of Northern Ireland. That alignment is highly desirable at the best of times, but is absolutely essential at times of financial stress and struggle. There is a clear example in the Department of Health, in which we all recognise that there has to be some degree of transformation. In particular, we need to invest in building up certain staff teams, to tackle the issue of waiting lists. However, if the Departments and the trusts are only getting their allocations quite late in the year and do not even know what they will get next year, they do not have the confidence and clarity to make those investments. That is just one example of a massive opportunity cost in not tackling those waiting lists, which I stress are the worst in the United Kingdom: we hear a lot about the health crisis across the UK, but on all those indicators, Northern Ireland is that bit worse.

While this Bill does include a vote on account, which allows Departments to spend legally at the beginning of the incoming financial year, it does not give clarity on what they will have to spend over that 12 months, so they cannot make longer-term allocations or plan properly. We need to see a Budget decision-making process for the next financial year, taken—preferably—by a functioning Executive that is restored in the near future, or by the Government, if they have to do that instead. That has massive implications for where we are going and for our governance, but at some point we have to recognise that that is the price we pay for not having functioning devolution, to provide some degree of certainty for those in our public services who are trying to do their best on behalf of all the people of Northern Ireland.

I tend to agree with the Minister that previous Executives have squandered opportunities to reform our public services, but that is not the entire story. It is also important to recognise that, as the hon. Member for Belfast East (Gavin Robinson) has set out, the size of our block grant in Northern Ireland is set to be squeezed in real terms over the years ahead, not only through the Barnett squeeze, but due to the fact that our basic allocation is being reduced because—for reasons that I will not labour at this stage—the wider UK public finances are in a difficult situation. We heard announcements from the Chancellor of the Exchequer in the autumn about how that would be managed over the coming years, but we are part of that wider framework and suffer as a consequence.

While recognising that our finances are unsustainable, I will highlight one area that my party has been keen to stress: Northern Ireland is wasting a lot of resources, which could otherwise be spent on investing in our economy and improving public services, on managing a divided society. There are many good reasons to overcome the segregation and division and to build a shared and integrated society, but finance must be one of them. Various estimates and reports over the past years have put the cost of trying to manage a divided society at between £400 million and £800 million per annum. That comes with major opportunity costs, as I have said.

Those costs occur in four particular areas. First, there are the direct costs of policing riots, other civil disturbances and parades, distortions to policing from the security threat and repairing damaged buildings and facilities. Secondly, there are costs associated with the duplication of goods, facilities and services implicitly for separate sections of our community. That includes most clearly what happens with schools in different sectors, but also the spatial distribution of GP surgeries, jobcentres, community centres and leisure centres.

Thirdly, there are hidden costs, which impact on the environment in which Departments and agencies operate and include pressures on the housing sector, for example, from demographic imbalances and a sense of territory, with various implications for people’s mobility depending on where they are housed. Fourthly, there are lost opportunities for economic activity and tax revenue and for investment in tourism and job creation.

Beyond those costs, there is a compelling case for transforming health. The Northern Ireland Fiscal Council produced a useful report on that in the past year, which people should read and consider. Obviously Northern Ireland has higher health needs than other parts of the UK, so health spending will always be higher in Northern Ireland than elsewhere, but none the less the report points to inefficiencies in how our health sector is run and operated. There is a challenge for a returning Executive to genuinely tackle that and, in doing so, to improve health outcomes. This is not about cuts for the sake of cuts; it has to be about rebalancing how we spend our Budgets to get better outcomes.

Another clear example is the scandal of double funding between schools and further education, which amounts to scores of millions of pounds every year. Given that Northern Ireland does not have a proper 14-to-19 framework, we end up with schools trying to retain pupils post-16 by offering a whole range of vocational courses, even though the further education system is a much better place to offer such courses. Schools also get two years’ worth of funding per student in years 13 and 14, but if a student is not performing sufficiently well in the school’s eyes, they are asked to leave rather than stay and bring the school’s results down in the artificial league tables, so they end up going into the FE sector and effectively repeating a year. That is just one example of money needlessly being spent when it could be better invested elsewhere.

My wider fear is that public finances in Northern Ireland are on a burning platform. Some retired civil servants have talked openly about the fact that £1 billion-worth of pressure is building up in the system, but our Budgets are shrinking and the longer-term trajectory is smaller, smaller, smaller. Without the time, space and opportunity to reform and transform, all we will see is cuts, cuts, cuts. That means that we will end up with worse health and education systems, we will not invest in skills and, indeed, we will not meet our obligations to invest to mitigate climate change. What we will see, essentially, is managed decline and stagnation, and that simply lets Northern Ireland down.

We have to find some means of breaking this vicious cycle. I know that we have had past packages in relation to Stormont House, including Fresh Start and New Decade, New Approach. Some very searching questions and challenges have to be raised as to why those have not been properly addressed and why promises have not been fully delivered. I am not directing that at the Government; the question why that has not been the case is also one for the Northern Ireland parties. I appreciate that there will be a certain degree of scepticism in the Treasury whenever I say this, but I do not think we have any alternative but to think through how we can talk about the development of a longer-term plan for Northern Ireland, involving a restored Executive and the Treasury, and how over the next five to 10 years we can make Northern Ireland a financially sustainable society and, in the process, improve our public services and economy.

I am conscious that we are coming up to the 25th anniversary of the Good Friday agreement in a couple of months. That agreement has transformed Northern Ireland in many respects and we are very grateful for that, notwithstanding the current problems and controversies. Many people have reflected on the fact that perhaps Northern Ireland has not been transformed fully in terms of social and economic opportunities and in terms of investments. People are talking about looking forward to some form of prosperity decade; we need to think about that.

There is an opportunity, if we can get ourselves past the immediate blockages, for the Government, the parties and a restored Executive to try to work in partnership to hammer out some sort of plan and break the cycle. I believe that there is a compelling overarching argument for doing that. I am keen for myself and others to elaborate on that over the coming weeks, and it is important that we use tonight as an opportunity to set out our initial thoughts on the potential way ahead. This will be based on investing to save; we cannot unlock and change Northern Ireland without some investment coming in from the outside. Others will be entitled to hold us to account for all of that. With that cheery thought on what could be an exciting future for us if we can get past the hurdles, I will end my comments.

Northern Ireland (Executive Formation etc) Bill

Stephen Farry Excerpts

Committee stage
Tuesday 29th November 2022 Commons Chamber

[Sir Jeffrey M. Donaldson]

Actually, that is not what the former DAERA Minister said. He recognised that the protocol is not working and is harming agriculture. Our farmers cannot bring seed potatoes from Great Britain into Northern Ireland, and there are many other restrictions on the movement of livestock and so on. The point he was making was that there should be no restriction on state aid support for farmers in Northern Ireland as a result of the protocol Bill—not as a result of the protocol.

We can go around in circles on all this. We can train-spot on MLA pay all day long, but the reality is that we are missing the train coming down the track. And the train coming down the track is the lack of consensus enabling the political institutions to function properly. That is what we need to resolve. The Bill allows more time for the solution to be found, and that is what we need to happen. We need the solution.

[Stephen Farry]

Members will be pleased to know that I will be extremely brief. I will touch on a few points.

First, I will not repeat the arguments for amendment 10 given that I mentioned them on Second Reading, but I invite the Secretary of State or the Minister to respond to the substance of it when they wind up. I hope they will reflect on what I and the shadow Secretary of State, the hon. Member for Hove (Peter Kyle) have said about not boxing themselves in for what lies ahead.

Beyond that, I stress that there is a need for some degree of ad hoc scrutiny in what happens over the coming weeks and months. With respect to my DUP colleagues, amendment 13, taken literally, is somewhat onerous, but there is also an elephant in the room: our best means to scrutinise decision making in Northern Ireland is to have a fully functioning Assembly.

[Mr Baker]

First, I thank Members opposite for being constructive in dealing with Northern Ireland issues while also holding us to account. They are holding us to account on new clause 6 in particular, and have asked us to provide reports. We propose instead to make statements to Parliament, including oral statements. Those Members know that they are very welcome to be in touch with us with suggestions. Clearly, we do not want to be in here every day—nor would we need to be—but we would wish to make statements so that Parliament is properly informed. The Secretary of State and I are fully committed to working constructively with the House.

Turning to amendment 10 on indefinite extension, it is not the intention of the legislation to create indefinite or undefined extensions to the Executive formation period. We are deeply aware that the previous political impasse dragged on for three years, and we cannot allow that to happen again.

--- Later in debate ---

[Mr Baker]

I wholeheartedly agree with my right hon. Friend. Getting that deal will require us, as we have said several times, to respect the legitimate interests of our negotiating partners while also delivering on the legitimate interests of Unionists. I am extremely grateful to him for his support.

[Stephen Farry]

I want to press the Minister on that point. I fully accept his point that the legislation being open-ended is not desirable in any sense, but, equally, we are seven weeks away from the 18 January deadline. If he is genuinely telling us that he believes we will have a full outcome in that period, that is great, but surely he recognises that that may not be the case and that it would be best not to box himself in entirely.

[Mr Baker]

I certainly recognise that we may not reach a deal, and that is why the Northern Ireland Protocol Bill continues its passage in the other place, but the reality is that we cannot allow ourselves to drag on with indefinite extension. The people of Northern Ireland deserve good government, and that is why the legislation is drafted to create a short, straightforward and defined extension to the period for Executive formation. I very much hope that we will conclude an agreement, reform the institutions and then move forward.

Northern Ireland (Executive Formation etc) Bill

Stephen Farry Excerpts

2nd reading
Tuesday 29th November 2022 Commons Chamber

[Chris Heaton-Harris]

I believe I have just laid a written ministerial statement to give an update on how the Government are delivering on the commitments in the New Decade, New Approach paper. The hon. Gentleman is quite right that all these things can happen simultaneously or separately and at different speeds, and have done, but there is also a fundamental issue, which was noted at that time, with the protocol. This Bill, though, is about creating the conditions in which key decisions in Northern Ireland can be taken, including on the implementation of the budget, rather than the content of the budget that I was describing before the intervention.

I will briefly summarise the overall intention of the Bill before running through its provisions. At the outset, though, I must say that I am grateful to those on the Opposition Benches—all of them—for their co-operation in moving this Bill forward. Specifically, though I know I should perhaps save this for Third Reading, I thank the shadow Northern Ireland Secretary, the hon. Member for Hove (Peter Kyle), for the constructive and cross-party fashion in which he and others on the Opposition Front Bench have approached this Bill, both in this place and the other place. I am also grateful to him for speaking to me on this important Bill over the weekend and for speaking to my hon. Friend the Minister of State yesterday evening.

The Bill broadly seeks to do three main things. It retrospectively extends the period of Executive formation for two six-week periods. That means, subject to the agreement of this House and the other place, that if an Executive is not formed within those timeframes, the election duty placed on me will kick in after the second extension of six weeks, on 20 January 2023.

[Stephen Farry (North Down) (Alliance)]

I ask the Secretary of State to reflect on the disjoint between the timetable he is setting out today for restoration of the Executive and the current pace of negotiations with the European Union. Does he not recognise the need for him to build in some further flexibility, to avoid a situation where he has to call an election at a time when the negotiations are coming to a conclusion and potentially inside that tunnel, given that an election may be very prejudicial to securing a stable outcome and to getting the necessary compromise so that Northern Ireland can move forward?

[Chris Heaton-Harris]

I thank the hon. Gentleman for his intervention and for his message to me on the subject earlier. I completely understand the point he makes, but I am hopeful that we can do the work that needs to be done within the timeframe that we are setting down now.

Returning to the Bill, the second main thing it does is to clarify the decisions that civil servants in Northern Ireland Departments can take in the absence of Northern Ireland Ministers, so that decisions in crucial areas such as public sector spending and the maintenance of public services can continue to be taken in the absence of an Executive.

--- Later in debate ---

[Stephen Farry (North Down) (Alliance)]

I cannot say that I welcome the legislation, but I recognise that it is sadly necessary. It is shameful and disgraceful that the Northern Ireland Assembly and Executive are currently not in place. We continue to maintain that they should be established forthwith.

We are facing twin governance and financial crises in Northern Ireland, and huge damage has been done to our economy and public services through delayed or missed decision making. That comes at a time when there is immense pressure on Northern Ireland’s public finances. I have made the point that mistakes were made in the past and the roof was not mended when the sun was shining and we had better opportunities, so difficult decisions are now required. Indeed, our health service in particular is going through tremendous difficulties. Necessary reforms to our public sector are being delayed, which means that the budget crisis gets ever tighter as we try to balance the books on an ever-declining, burning platform.

I will touch on the key areas of the Bill, mindful of your guidance, Mr Deputy Speaker. First, I will touch on the revised deadline for the formation of an Executive and, by implication, the resumption of the duty on the Secretary of State to call an election within 12 weeks if those deadlines are not met. The Secretary of State took the right decision to defer an election after 28 October and to seek further flexibility. In the current climate, an election would have been counterproductive and would have made the task of restoration and the wider negotiations with the European Union more difficult.

My difficulty lies with the revised dates. I appreciate that the Government have to try to move the process along and put in place some kind of deadline to get people over the line, but there is a disconnect between the timescale that the Northern Ireland Office is setting out and the reality of the pace of negotiations with the European Union. Evidently, we have seen a change in the mood music over the past few weeks, which is extremely welcome, but we have not yet seen real progress in the substance of those negotiations. I earnestly wish that we reach a conclusion as quickly as possible, which will require flexibility from the UK and, may I say, the European Union. The UK Government need to take a view on exactly where they will land on these issues; I will refrain from going into the detail of those discussions, given the nature of the Bill.

The shadow Secretary of State has already alluded to the fact that the first deadline in the legislation of 8 December is next Thursday, which may in practice be only a couple of days after the Bill gets Royal Assent. What seemed to be a reasonable deadline a few weeks ago is now, I suspect, fairly meaningless, so we are focused on the second deadline of 19 January, which I note is essentially only seven weeks away. In theory, that is ample time for the negotiations with the European Union to reach a conclusion, but based on the rate of progress that we have seen in recent weeks and months, we need to be realistic that that may not be the case.

We could therefore be in a situation where the Secretary of State has a restored duty to call an election after 19 January. At that stage, perhaps progress will have finally been made in the negotiations or we might be in or about to enter the metaphorical tunnel of those negotiations. In that context, I venture that the prospect or actuality of an Assembly election would be at best counterproductive and at worst extremely damaging. The talks could grind to a halt because of that potential election, or a certain political party or others could harden their red lines about those negotiations, which would make compromise, or the acceptance of a compromise deal, more difficult.

Obviously we need strong leadership from all quarters to ensure that we can get something workable over the line. I suggest to the Secretary of State that this Bill is too inflexibly framed. I appreciate the need to focus minds, but if after 19 January it is manifestly not in the interests of the people of Northern Ireland, the negotiations or the wider public interest to have an election, the only recourse available will be the Secretary of State’s coming back to Parliament seeking a further Bill. I imagine it would go down like a lead balloon if we were in that situation. I urge the Secretary of State to take the time between now and consideration of this Bill in the other place to reflect on the way forward—to keep us focused on the job in hand but to give that bit of flexibility if it proves necessary.

Secondly, I want to talk about the guidance. I welcome the publication of the draft guidance today, but the Bill is at best a stopgap in terms of governance. We have a major hole in that regard. What we have before us is neither tenable nor sustainable beyond the shortest possible periods. There are many difficult, pressing, urgent decisions that need to be taken, and it is right that civil servants are reluctant to take significant decisions that are normally left to be taken at the political level. There are particular difficulties in taking budget decisions: it is one thing keeping a budget ticking over on a care and maintenance basis, but if the books need to be balanced in a tighter budget situation, any decision to cut something is inherently political and will be subject to some degree of challenge. The civil servants are placed in an unenviable situation, but a balance must be struck between recognising that reluctance while at least enabling critical things to be taken forward.

We must have some further discussion on the guidance. I understand it could be clarified in due course, but what type of consultations will happen over a short period of time to get the draft guidance turned into final guidance whenever this Bill receives Royal Assent? I also seek an assurance that the guidance will be flexible enough to enable—rather than direct—civil servants to implement any pay body recommendations, because that is clearly a pressing issue for many public sector workers in Northern Ireland, who perhaps at this stage have not received what has been made available in Great Britain, never mind the legitimate concerns around additional pay that many are making.

On MLA pay, I declare a previous interest in that I was an MLA whose pay was deducted under a previous Assembly. It was difficult, but it was the right thing to do, and I recognise that cutting MLA pay is the right thing to do today. I say slightly flippantly that it should be directed primarily at those who are blocking restoration of the Executive, but I appreciate that is difficult to do. I recognise the remarks from Members of other parties that this might not in itself force a change of minds, but as the Chair of the Select Committee, the hon. Member for North Dorset (Simon Hoare), recognised, there is major disquiet at MLAs receiving their full salary in the current environment, and that must be recognised inside this Parliament. Most MLAs recognise that; certainly my party colleagues do so. Notwithstanding the fact that they cannot perform their full job description as set out, they are working extensively every week to act on behalf of their constituents, to make representations and work with other groups in Northern Ireland. But they are also massively frustrated.

Finally, I want to talk about what will happen if this Bill fails, and indeed if there is no outcome from negotiations with the EU or we have an outcome that most common-sense people would accept but is none the less rejected by some Northern Ireland parties, and we therefore have continued blockage. As I have said, I do not believe the current stopgap approach to governance is sustainable. Decisions should be taken by locally elected people in Northern Ireland on behalf of their constituents. If we are in the situation of defaulting to direct rule, that is problematic in many respects. As there has been some talk of joint authority being an alternative, I want to take this opportunity just to make it very clear that for my party, joint authority is outside the context of the Good Friday agreement and outside the principle of consent. None the less, if we are to talk about direct rule, that would have to have an Irish dimension of some description, and that has been understood going back to the Anglo-Irish agreement of 1985.

That is basically what we are looking into, but short of that, we should be looking at reform of the institutions. I am not going to go into the detail of that, except to reiterate my party’s very strong commitment to allow those parties in Northern Ireland that wish to govern to do so. That is by far the next best alternative to the current arrangements. I would prefer that to be done on an inclusive basis, but the point is that some parties have the opportunity to take up places in government, and it is they who are self-excluding.

[Sammy Wilson]

When did the Alliance party have this Damascus road experience? For three years when Sinn Féin was holding up progress and holding up the Assembly in Northern Ireland, I never heard once that the Alliance party believed that the Assembly and its structures should be changed to facilitate that.

[Stephen Farry]

I am grateful to the right hon. Member for his intervention because it gives me the opportunity to reiterate that my party has consistently advocated reform of the Assembly structures. It has been in our party manifestos going back to 1999. In particular, in the period between 2017 and 2020, my party made numerous comments publicly on the need for reform. I will gladly forward copies of speeches made by my party leader to party conferences to the right hon. Member so that he can read them with a great deal of interest.

[Colum Eastwood]

Far be it from me to get involved in this conversation between the Alliance party and the DUP, but would the hon. Member like to tell us his understanding of what the DUP’s position actually is on mandatory coalition, because as far as I am concerned, it seems to be a new convert to the principle?

[Stephen Farry]

We can look at this in two different ways—what happened before 1972, and what happened in the 1970s and 1980s through to what happened during the talks. I would stress that, if we read the DUP manifestos up to the point of its current walk-out, we can see that it was actually a fan of reform of the institutions and moving away from mandatory coalition. It was a principle for the DUP then, but that is no longer the case. Indeed, the right hon. Member for Lagan Valley (Sir Jeffrey M. Donaldson) famously went on “Question Time” during the last impasse and lambasted the situation in which a party with about 25% of the vote was able to frustrate the institutions. I think I will leave it there.

--- Later in debate ---

[Jim Shannon]

I thank my hon. Friend and colleague for reminding us of that important factor, which cannot be ignored. The leader of Sinn Féin across all Ireland, north and south, is a Member for her political party down south and has jurisdiction through her party in Northern Ireland as well, so what happens in Dublin will clearly have an impact on Northern Ireland. I therefore believe, like my hon. Friend and others, that we cannot ignore the issue in this House. That is the point that I think he was making, and I concur totally.

The DUP was proud to table new clause 7, but it was not selected for debate. It would have changed the date of the local government elections in 2023 to take into consideration the King’s coronation celebrations. Because Northern Ireland elections are conducted under proportional representation, counting takes significantly longer than is normal in other parts of the United Kingdom.

[Stephen Farry]

May I put it on the record that my party agrees with the DUP on the issue? There may well be some degree of consensus on a pragmatic reform to take into account the need to respect the coronation and respect the elections in Northern Ireland. I hope that that gives the Northern Ireland Office a hint.

[Jim Shannon]

Well, we have a consensus! I am pleased to hear that the hon. Member and his party concur with our opinion, so I hope that when the Minister of State replies to the debate he will give us a positive answer. It is important because if 4 May remains election day, the results will extend into coronation day. That is the very nature of what will happen back home, so it must be changed to ensure the public participation of candidates, the electoral office staff, who are an important part of it all, and the party supporters attending count centres. I urge the Government to take our proposal into immediate consideration for the sake of the celebration of the King’s coronation, and I thank the hon. Member for North Down (Stephen Farry) for his support.

The amendments that the DUP has tabled are for the greater good of Northern Ireland and our economic and constitutional position within this great United Kingdom. We hope that the Government will listen to us. They must be assured of our stealth and determination in regard to the damaging effect that the Northern Ireland Protocol Bill is having on Northern Ireland.