Driver and Vehicle Agency (Northern Ireland)

Baroness Ritchie of Downpatrick Excerpts

Tuesday 15th October 2013 Westminster Hall

[Ms Margaret Ritchie (South Down) (SDLP)]

I congratulate the hon. Member for East Londonderry (Mr Campbell) on securing the debate this morning. It is an important subject for all the people in Northern Ireland. I welcome the Minister—the Under-Secretary of State for Transport, the hon. Member for Scarborough and Whitby (Mr Goodwill)—to his new position. I also welcome the shadow Minister, the hon. Member for Birmingham, Northfield (Richard Burden).

Northern Ireland is a public sector-led economy. Last week, we were pleased that the Prime Minister came and led on an international investment conference. Importantly, private sector jobs should supplement jobs in the public sector. We want to see a fair and equal distribution of the private sector jobs that we hope will flow from the Prime Minister’s visit and the visit of international investors last week. In this debate, we are all telling the Minister and his Department, “No decentralisation of services.” There is a dichotomy of policy, in that the Government and the Northern Ireland Executive believe in decentralisation because it can underpin the bedrock of the local economy, but by the same token, taking jobs away means centralisation to us. That issue needs to be explored, answered and corrected.

The current proposal to centralise vehicle registration and licensing services in Swansea will remove 324 full-time equivalent posts from Northern Ireland, which in real terms will have an impact on about 380 employees, and will also have an impact on the services provided.

As a result of an intervention by the then Northern Ireland Minister of the Environment, my party colleague Alex Attwood, with the Under-Secretary of State for Transport, the hon. Member for Wimbledon (Stephen Hammond), a consultation was agreed and launched by the Department for Transport. The support of the Department of the Environment in Northern Ireland for retaining those jobs and services remains constant and has been backed by all political parties in Northern Ireland, as was mentioned by the hon. Member for East Londonderry. A strong case has been made for not only retaining the jobs in the DVA, but expanding services in Northern Ireland by transferring work for UK customers to Northern Ireland.

The impact will be felt in Coleraine, where the headquarters are based, and in areas such as Armagh, Ballymena, Belfast, Enniskillen, Derry, Omagh and Downpatrick. Under the proposal, my constituency of South Down will see the removal of services and jobs at the Downpatrick office, which has traditionally been the County Down facility for people to tax their car for many generations. Downpatrick is the main centre of public administration in South Down, and any reduction in staffing numbers will have an impact on its economy and on future services that might be attracted to the area. At the same time, we are trying to pool resources and administrative services to complement the role it has always had as a centre of public administration.

I appreciate that the constituency of the hon. Member for East Londonderry will be worst hit by the removal of services from Coleraine, but the injustice and disproportionate nature of the proposal will be felt by people whose jobs are affected and by people throughout Northern Ireland who rely on the services delivered by those offices, including those in my constituency.

The Minister will be aware of the representations made by me and my colleagues, including the former Minister of the Environment and the new Minister of the Environment, Mark H. Durkan. In the initial reply from the Under-Secretary of State for Transport, the hon. Member for Wimbledon, I was advised that the proposal to withdraw jobs from Northern Ireland was in response to the need to bring vehicle licensing and registration up to date and into line with developments in IT systems in Great Britain, and to provide a much-improved service. However, in his second reply, he outlined that the removal of 380 jobs from Northern Ireland would achieve significant savings for UK taxpayers.

Will the new Minister therefore clarify the reasoning behind the proposal? Is it simply a cost-saving exercise that will obviously have a disproportionate impact on staff in Northern Ireland, as well as on the wider community that relies on the services provided, or is it about developments in IT systems, through which local people will also lose jobs and services? If the Department for Transport is looking at the proposal as a means of cutting costs, it should consider the views of those employed in the service, who are some of the most dedicated people in the public service of Northern Ireland.

[Naomi Long (Belfast East) (Alliance)]

I thank the hon. Lady for giving way, and I pay tribute to the hon. Member for East Londonderry (Mr Campbell) for securing the debate. It is right that all parties are giving support on the issue. Does she agree that if the proposal is about modernising how the service is delivered, such a modernisation could be delivered in Northern Ireland without the need for closing the base there? We can already deliver a high-quality service, and modernisation would simply aid us in doing so, as well as allowing the further transfer of UK services to sites in Northern Ireland.

[Ms Ritchie]

I thank the hon. Lady for her useful and beneficial intervention. Obviously, if there is to be modernisation, an idea which none of us rejects or opposes, it could take place in Northern Ireland facilities—the headquarters in Coleraine and the other offices. In fact, we could take services that currently take place in Britain and, I have to say, perhaps do them much better, more efficiently and more diligently.

I want to move on to the views of the staff who responded to the consultation. They say that the existing closure programme has had a serious impact on services offered by the DVLA to the motorist in Great Britain. It is unclear whether those services can be properly managed, but no doubt they could be if they were brought to Northern Ireland.

Interestingly, a commissioned study by Oxford Economics has estimated that the DVLA proposal for the removal of services from Northern Ireland would have a direct negative impact of £14.5 million in gross value added terms, as well as an impact of £7 million on workplace wages in the Northern Ireland economy, which, given the size of Northern Ireland, is a remarkable statistic. The removal of £22.2 million from the Northern Ireland economy will have an impact on all its sectors, notably wholesale and retail trade, accommodation spaces, food services, entertainment and recreation, plus financial services, property, housing and the supply industries—and all that at a time of economic downturn, although there might be a slight lift that we would all welcome.

The figures I have cited for what would be removed from the Northern Ireland economy do not add up to what the Under-Secretary of State for Transport, the hon. Member for Wimbledon stated would be significant savings. Surely, a more acceptable form of improvement would be to upgrade the DVA’s IT systems. We must ask why the IT systems in Northern Ireland have been neglected, and not upgraded as a matter of necessity over the years. We ask that question because that has been replicated in other service areas. Some people say that, over recent years, some areas might have been prepared for privatisation and others for closure. For me, it is simply a case of downgrading a service and undermining the economic stability that exists in Northern Ireland.

I understand that staff working in the DVA feel that the service has been vigorously, systematically and aggressively underfunded for many years by the Department for Transport, despite which the staff have actively sought to provide the Northern Ireland motorist—whether the ordinary person with a car, someone working with agricultural machinery or people in the haulage industry— with an excellent level of service. That under-resourcing has left the staff open to the business criticism and the challenges in the current DVLA proposal for the future of vehicle registration and licensing services in Northern Ireland.

I am sure that, following the consultation that ended on this proposal on 11 September, the current Minister of the Environment in Northern Ireland will meet the Minister separately, as will a cross-party delegation of MPs from Northern Ireland. I hope that we can relay our serious concerns to him and demonstrate that the move will have a disproportionate impact on services, people and jobs in Northern Ireland.

Given the 100% opposition to the move and the strong case that has been made for the retention and the expansion of the services, I urge the Minister and his Department immediately to review the position, retain the jobs and, as the hon. Member for East Londonderry said, visit the office in Coleraine and pay a snapshot visit to the other offices. They should do that in conjunction with the local Minister of the Environment, Mr Durkan, who has a clear picture of what is going on and who has been steadfastly opposed to the closure.

[Stephen Pound]

Does the hon. Lady agree that as the efficiency case has been lost, cost is clearly the issue? Is she aware, as many of us are, that overtime payments in Swansea since this programme started have totalled £1.63 million? Does that not make a complete nonsense of the centralisation case?

[Ms Ritchie]

I thank my hon. Friend for his intervention. I was told that the figures for overtime payments in Swansea were nearer to £1.65 million. I am in no doubt that the work that precipitated those overtime payments could clearly be carried out in Northern Ireland where the service to the customer and the dedication of the staff are second to none. I urge the Minister to keep the DVA jobs and services throughout Northern Ireland. If he does that, he and his Department will not be found wanting.