Northern Ireland Budget (Anticipation and Adjustments) Bill

Andrew Murrison Excerpts

2nd reading: House of Commons & 3rd reading: House of Commons
Tuesday 20th March 2018 Commons Chamber

[Karen Bradley]

I had the privilege of meeting Mitchell Reiss when I was in the United States last week, and I think several Opposition Members may also have had the chance to meet him. I expect the Independent Reporting Commission to report its interim findings shortly. Its members will be visiting Northern Ireland shortly, at which point I expect to have a meeting with them. I am well aware of the point that the hon. Lady mentions—it was something I discussed with Mr Reiss in the United States.

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

Funding that is apparently destined for the implementation of the recommendations of the Hart report is quite correctly covered in schedule 2, but it is also covered in schedule 3, which seems to conflict slightly with the point made earlier. Will my right hon. Friend clarify the situation? Schedule 3 appears to anticipate spend on the Hart inquiry, which we would all welcome, but she has not said this explicitly.

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[Karen Bradley]

I thank the hon. Gentleman for his contribution. I agree that we all want to see devolution restored. As I have said, I am doing this reluctantly, but I am doing what is required to enable public spending to continue and public services to be delivered. I pay tribute to the civil servants and other public servants who have worked tirelessly for the past 14 months doing exactly that work, and I want to make sure that they can continue to do so.

[Dr Murrison]

My right hon. Friend is being very generous in giving way. I am probably being thick, but can she explain the difference between schedules 3 and 4 —that is to say the difference between “resources authorised” and “sums granted” for the year ending 31 March 2019? Many of the figures look pretty much the same, but clearly there is a difference in the form of words used. I would be very grateful for clarification on that point.

[Karen Bradley]

I suspect that that is a deeply technical point. It would probably be helpful to the members of the Select Committee if I wrote to my hon. Friend and set out exactly what the difference was. However, I want to assure him that we are approving the start of spending, but we are not approving final numbers or how that spending happens as part of the process for 2018-19. What we are approving today is the moneys that have already been spent and making sure that those moneys that have been spent are on a proper statutory footing so that the finances of Northern Ireland and the NICS can be properly dealt with.

As I conclude, I will set out once again a point that I have made several times before: the UK Government are steadfastly committed to the Belfast agreement, and we are completely committed to working to remove the barriers to the restoration of devolution. That is because Northern Ireland needs strong political leadership from a locally elected and accountable devolved Government and that remains my firm goal. However, in its absence, this Bill is a reminder that the UK Government will always uphold their responsibilities for political stability and good governance, and I commend it to the House.

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

I congratulate my right hon. Friend the Secretary of State on bringing forward this measure. It is something that none of us wanted to see, but it is preferable to section 59 of the Northern Ireland Act 1998, not least because it means that accruing resources can be used, and subsections (2), (3) and (4) make it clear that those sums of money are substantial. Clearly, this Bill requires a budget to be set at some point. We hope that that budget will be set in Stormont and not here, but it still needs to be set. It would be useful to hear what timetable the Secretary of State envisages. We have grown used to timetables that are somewhat flexible in recent months—indeed, years—but if she has to bring forward a Bill here, it will be nice to have a sense of when she intends to do so.

I thank the Secretary of State for her letter to me of 13 March, following mine of 28 February, on the Northern Ireland Office supplementary estimate. I think that she satisfied all the points that I raised on behalf of the Northern Ireland Committee. However, may I press her a little on efficiency savings? It is understood from the letter that the Northern Ireland Administration have already scored the formal efficiency review of 2017-20 against the target, but efficiency improvements are still expected. How will this be ensured, who will implement it and who will oversee it? What role does the Secretary of State see that the auditor has in this respect? I will come back to that in a few minutes, if I may.

In my letter, I drew attention to the £79 million discrepancy between the cash grant and the departmental expenditure limit at main estimate. The explanation relating to the Stormont House and Fresh Start agreements is perfectly satisfactory, but my Committee’s scrutiny work would have been greatly assisted by early notification of that apparent discrepancy. Hon. Members can be sure that we will scrutinise the figures in this Bill closely, and the budget when it appears. It is very important that any discrepancies are brought to the attention of my Committee, or indeed the House, since in the current circumstances, scrutiny in this place is vital.

Are we any further ahead in quantifying the costs of systems envisioned under option 2 at paragraph 49 of December’s joint report? If so, where and when will they appear in subsequent estimates? Those are the costs that will be involved in creating alternative solutions in order to ensure that the border in Northern Ireland is as frictionless and seamless as possible. Those costs are likely to be significant, if indeed such a solution can be created, and it would be good to know that sufficient budgetary accommodation has been made for them.

In her written ministerial statement of 8 March, the Secretary of State announced £100 million in flex from capital to resource. Capitalisation is uncommon. The Treasury dislikes it, and for very good reason. So why precisely is it felt necessary, against a relatively generous Northern Ireland settlement on this occasion, to introduce capitalisation?

The Treasury has made a rather unusual call for evidence in a piece of work that it is doing on tourism. It wants evidence on VAT and air passenger duty that may go to support an improved position for tourism in Northern Ireland. I very much welcome that. Indeed, my Select Committee took evidence on this subject recently, and the Treasury documentation refers to that. However, it does seem to be an unusual intervention. Indeed, since many of the things that will have to be done as a response to any such report that the Treasury may produce will be devolved, how does the Secretary of State see that work being carried forward? I am sure that she, like me, would not wish the Treasury to be embarked on a piece of work that was not, at the end of the day, going to result in recommendations that could be carried forward. I therefore imagine that she has worked out, in collaboration with the Treasury, a pathway between recommendations that may come out of this piece of work and how they are going to be implemented. We cannot necessarily assume—I am sure that she does not—that we will have an Executive up and running within a timeframe that will be suitable for this report.

[Nigel Dodds]

The hon. Gentleman is right in respect of some of the recommendations that may come out of that report. As for whether Ministers responsible to this House or Ministers responsible to the Assembly take these decisions, we will have to wait and see what happens. Air passenger duty and value added tax are matters for this House—for the Chancellor and the Treasury—and therefore the main object of the report will be a matter for this House.

[Dr Murrison]

The right hon. Gentleman is absolutely correct. However, the call for evidence goes much further than that. That is what I am chiefly concerned about, since it implies that competences will be available in the event that there is no Executive in place that will carry this forward. Otherwise, it would be a fairly tight and narrow call for evidence.

The Northern Ireland Audit Office this year will report on a number of things. It is a very busy office, and my Select Committee was very pleased indeed to be able to meet Kieran Donnelly recently in Belfast to take evidence on the work of his department. It will be reporting on digital transformation in Northern Ireland, welfare reform in Northern Ireland, speeding up avoidable delays in the criminal justice system, financial health of schools and the social investment fund.

A lot of that has to do with increasing productivity in Northern Ireland and rebalancing the economy. It is not discretionary work; it is vital. It has to do with achieving value for money. My question is: where is all that work leading? If there is no body to scrutinise the auditor, let alone an organisation to take forward his recommendations, he may be crying in the wilderness. It is a bit of an irony that his work is geared towards value for money, since in those circumstances—that is to say, those recommendations not being taken forward—some question would be revolving around the value for money posed by the auditor himself.

It would be useful to know what thoughts the Secretary of State has about how the auditor’s reports can be properly examined—perhaps by a shadow Public Accounts Committee made up of Members of the Legislative Assembly—so that some comment can be made upon them. There would then be at least some chance of that work being carried forward by perhaps a newly emboldened Secretary of State for Northern Ireland, who may need to have powers if the current impasse continues for any length of time.

I would like to ask the Secretary of State about the guidance that she has recently offered permanent secretaries and the status of it. On 12 March, at column 646 of the Official Report, the Secretary of State said in answer to my question about budgetary granularity that she had written to permanent secretaries about her guidance on how money should be spent. She cited health transformation money as an example and said that she was taking legal advice on the powers that might be available to her. I sympathise with her. Dealing with lawyers is a tricky business at the best of times, and this, I assume, is a legal minefield.

The Secretary of State will want to ensure that this is got right, not least because, if she gets it wrong, there is every prospect of judicial review. I know very well that she is not going to publish the legal advice—I know better than to ask her to do that—but I wonder whether she could publish the guidance that she has issued to permanent secretaries. My Select Committee and this House will want to know what guidance she has issued, the status of that guidance and the extent to which permanent secretaries will be acting upon it.

In the schedules to the Bill, a whole raft of things are listed, with very big sums of money attached to them. It is important to understand whether we are dealing with governance by guidance or whether these are simply helpful suggestions that the permanent secretary may be guided by because, if he is judicially reviewed at some point for decisions made, the courts will want to determine what status that guidance has. At the moment, that appears obscure.

It becomes important in areas such as infrastructure. In the schedules, very large sums of money are attached to the Department for Infrastructure. We know that the Secretary of State wishes to pass £400 million for particular infrastructure projects in connection with the confidence and supply agreement, in two parts—£200 million in one financial year and £200 million in another. It is not clear to me what happens if that money is not spent within the timeframe of the agreement.

I ask that because, like right hon. and hon. Members who have observed large infrastructure projects in their constituencies, the natural tendency is for these things to run and run. In the event that the money is not spent, does it accrue to the Treasury? Is it spent on other things? Does it sit at Stormont, waiting for the glorious day of the restoration of the Executive? What happens to those unspent funds?

Can we also know a little more about what big-ticket items the Secretary of State has in mind? The wish list published by the Executive before their collapse contained a great deal more than the York Street interchange, which the Secretary of State has mentioned recently. Does the guidance issued for the permanent secretary at the Department for Infrastructure cite what things the Secretary of State thinks are important, in priority order? That, she will be aware, is difficult because some of the political parties in Northern Ireland—one of them in particular—are not at all keen on one or two of the projects and would rather see other things. It is politically quite sensitive, and it would be good to know what guidance the Secretary of State has issued to the Department for Infrastructure on that important item of public expenditure.

The £100 million for health transformation in the confidence and supply agreement is most welcome, but we have to understand what transformation means. It is not simply about opening clinics or hospitals; it is also about closing them. The hon. Member for Pontypridd (Owen Smith) was right to make the point last week that there is nothing more political in what we do than the opening and closing of healthcare institutions. I know that very well from my own constituency experience.

Is it really reasonable to expect permanent secretaries to make decisions of that sort? Indeed, would they make decisions of that sort? If they will not, the risk is that Bengoa will simply be put on ice. Under those circumstances, everybody loses. One way forward would be a legal avenue by which the Secretary of State can offer guidance that is perhaps a little more prescriptive than might otherwise be the case. We will not know that in this place unless we have sight of the guidance that has been issued and are able to examine it.

Does the Secretary of State share my concerns on policy drift and “do nothing” becoming the default option? The hon. Member for Vauxhall (Kate Hoey), who is not in her place, gave the great example last week of the decisions needed to secure the Commonwealth youth games in 2021. I know that the Secretary of State, because of her previous portfolio experience in this matter, is acutely aware of the difficulties. A number of decisions have to be made around that yet, at the moment, there is nobody to make those decisions. It may be small, but it is a poignant example of why it is so necessary for somebody somewhere to be able to make those sorts of decisions.

I know that the Secretary of State was recently in Derry/Londonderry. It just happened that she was visiting at the same time as my Select Committee. She will have heard from people in that fine city how frustrated they are that nobody appears to be making any decisions right now. This goes right across communities. Regardless of community almost, people just want things to happen, because they see society being pulled back and a Province that has made so much progress in recent years—economically, socially, in every conceivable way—essentially marking time while the Executive get their act together.

There will come a point when, with a heavy heart and the greatest of reluctance, Ministers here will have to start to make decisions. We can all hope for a restoration of the Executive, but we might be hoping for a restoration of the Executive in three years’ time. In three years’ time, the world will look a very different place. Bengoa will probably have been forgotten. Some of the big infrastructure projects that we want to see in Northern Ireland may well have fallen by the wayside. All that good stuff will not have happened, and Northern Ireland will have slipped further behind economically, socially, in every way imaginable. That would be a huge failure, and I know the Secretary of State feels the same way.

[Nigel Dodds]

The hon. Gentleman is 100% correct in what he just said. He is right to point out that of course we want devolution, and efforts must continue to ensure there is devolution in Northern Ireland but, in the meantime, there are communities and people suffering as a result of the lack of decision making. As he rightly says, in the meantime we must ensure that decisions are made for the good of everyone. That is an extremely important point, which I am sure the Secretary of State heard very clearly.

[Dr Murrison]

The right hon. Gentleman is, as ever, absolutely correct.

I will finish my remarks on the Hart inquiry, which Members are right to mention in connection with the business before us. The programme for government offers a helpful pointer to Ministers, who may otherwise not feel on particularly safe ground in relation to making decisions. The Secretary of State and other Ministers have said that it provides some basis on which they can take note of the last expressed democratic view on a number of issues. However, on 12 March—at column 653, on the Hart inquiry—the Secretary of State suggested that it is not the business of UK Ministers or this place to consider recommendations of bodies set up by the Executive, let alone implement them, and she repeated those sentiments today.

It would be helpful to have a bit of clarification, because I fear that we cannot have it both ways. We either observe what democratically elected bodies determined before they crumbled, and that extends to any bodies that they may have established, or we do not. It is an important principle because it seems to me that it is legitimate to take note of decisions that have previously been made and of the clear will of those bodies, particularly if there was no great controversy about them. It would be useful if the Secretary of State clarified this point, so that we are a bit clearer about what we can rely on and, indeed, what she will rely on in making any decisions or issuing any guidance on which she may wish to reflect.

[James Brokenshire (Old Bexley and Sidcup) (Con)]

Will my hon. Friend give way?

[Dr Murrison]

I was just about to sit down, but I will of course give way.

[James Brokenshire]

I commend my hon. Friend for his work and that of his Committee. Does he acknowledge that one of the challenges is that no recommendations were agreed by the outgoing Executive? That obviously makes the job of the Secretary of State in determining the right way forward on the hugely sensitive issue of the recommendations that the Hart inquiry sought to bring forward extremely difficult, and that is why she has to think carefully about how best—cross-community, and with the parties—to assess the right way forward.

[Dr Murrison]

My right hon. Friend is absolutely right but I am sure that, if he re-reads Hansard from last week, he will see that the argument extended not just to decisions made by the Executive or passed by the Assembly, but to things done by organisations set up by the Executive, which of course includes the Hart inquiry. The issue is whether we are guided by the recommendations made by those organisations or not, particularly if there appears to the Secretary of State and her Ministers to be genuine cross-party and cross-community acceptance of those recommendations and findings. To what the extent is that the best we have to work on? The question is really whether we are guided by what happened before the collapse of the Executive or not. I do not think that we can easily be selective.