Northern Ireland Budget Bill

Alistair Carmichael Excerpts

2nd reading: House of Commons & 3rd reading: House of Commons & Report stage: House of Commons
Monday 13th November 2017 Commons Chamber

[James Brokenshire]

Yes, we are in the position that we are in today because it has not been possible to form an Executive and because we do not have functioning devolved government. That is why, regrettably, I am having to introduce this Bill today: to put a legal framework in place to enable the Northern Ireland civil service to continue to spend in the way that it has done, to ensure that public services are able to operate. I believe that a solution remains possible, and that we must use all efforts and endeavours to restore devolved government. I know that the hon. Gentleman’s party and Sinn Féin have indicated firmly that they want to see an Executive restored and up and running, serving the people of Northern Ireland. That is where all our efforts and endeavours must firmly remain.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

The Secretary of State is right to say that it is necessary to pass this Bill in order for the machinery of government to continue operating, and for that reason, the Liberal Democrats will support him this evening, but surely more has to be said about how the machinery of government operates. For example, higher education in Northern Ireland is looking at a reduction in student places in excess of 2,200 by 2018-19 on the basis of this budget. Surely that illustrates better than anything else the need for this budget to be the subject of proper political accountability.

[James Brokenshire]

I agree with the right hon. Gentleman on accountability. The difficult job that the Northern Ireland civil service has had to do is effectively make its best assessment of the outgoing priorities of the outgoing Executive. It is worth noting that a lot of work was obviously done in the relation to the budget before the Executive collapsed at the start of the year—work that the parties had been engaged in closely with the Northern Ireland civil service. None the less, there are challenges and pressures in respect of how the civil service is having to operate under the emergency provisions of the Northern Ireland Act 1998, and issues about accountability and political decision making are felt keenly. There is a lack of accountability at the moment, which is why we want to see the Executive back up and running. Indeed, if an Assembly were restored quickly, the Assembly would be able to do that job. It would be able to look back at the budgeting arrangements and to carry out the normal level of scrutiny. I agree, however, that the situation is unsatisfactory, and we need to see progress and get the devolved Government back up and running at the earliest opportunity.

The powers that the Northern Ireland civil service has been exercising have their limits. Under section 59 of the 1998 Act and section 7 of the Government Resources and Accounts (Northern Ireland) Act 2001, the civil service may only issue cash and resources equal to 95% of the totals authorised in the previous financial year. The powers do not allow Departments to use accruing resources, meaning that the resources available to them are in reality significantly less than 95% of the previous year’s provision. Right hon. and hon. Members will recall that I set out in written statements in April and July an indicative budget position and set of departmental allocations based on the advice of the Northern Ireland civil service. In my written statement on 19 July, I said:

“The exercise of s59 powers cannot be sustained indefinitely”—[Official Report, 19 July 2017; Vol. 627, c. 56WS.]

Although we had not then reached it, I also warned that that critical point was approaching. The resource limits in the absence of a budget are now fast approaching. Without further action, there are manifest risks that the civil service would simply begin to run out of resources by the end of November. That would mean no funding available for public services, with all of the negative impacts that would accompany such a cliff edge. No Government could simply stand by and allow that to happen, which is why we need to take forward this Bill today.