Oral Answers to Questions Debate

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Department: Northern Ireland Office

Oral Answers to Questions

Ben Wallace Excerpts
Wednesday 20th January 2016

(8 years, 3 months ago)

Commons Chamber
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Jake Berry Portrait Jake Berry (Rossendale and Darwen) (Con)
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1. What recent discussions she has had with the Northern Ireland Executive on economic development.

Ben Wallace Portrait The Parliamentary Under-Secretary of State for Northern Ireland (Mr Ben Wallace)
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Last week, the Secretary of State and I met the Executive parties to review the implementation of the Stormont House and fresh start agreements, and the economic pact. Commitments include devolving corporation tax and rate-setting powers, if sustainable Executive finances are secured. This has the potential to have a truly transformational impact on the local economy.

Jake Berry Portrait Jake Berry
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I congratulate the ministerial team and the Department on their success in the creation of the economic pact, which has such a direct impact on Northern Ireland. What further steps can be taken to ensure that the Executive remain focused on how they can deliver those objectives?

Ben Wallace Portrait Mr Wallace
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The best thing we can do is to celebrate the fact that, under the recent spending review, the Chancellor put in place measures to see a 12% rise in real-terms funding for capital projects by 2021. That will mean over £600 million more will be available than if we had frozen funding at 2015-16 levels. That is good news for Northern Ireland infrastructure. Hopefully, it will mean the A5 and the A6 will start to progress and we can open up Northern Ireland for more foreign investment.

Baroness Ritchie of Downpatrick Portrait Ms Margaret Ritchie (South Down) (SDLP)
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9. Does the Minister agree with the CBI and the trade union movement that the UK’s exit from the European Union would be damaging to economic development in Northern Ireland? Will he encourage his colleague the Secretary of State to argue for a yes vote?

Ben Wallace Portrait Mr Wallace
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There is a temptation in front of me. What I would say is that to date membership of the European Union has been good for Northern Ireland. I support the Prime Minister’s efforts to achieve reform. A reformed EU is where the United Kingdom wants to be: an EU that works for the benefit of everyone in the United Kingdom. If we can achieve that, we can take advantage of being neighbours of Ireland, one of Northern Ireland’s biggest economic partners, to make sure that the economy goes from strength to strength.

Laurence Robertson Portrait Mr Laurence Robertson (Tewkesbury) (Con)
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Later this week I will have the pleasure of visiting Royal Portrush golf course in Northern Ireland, which has been awarded the 2019 Open golf championship for the first time since 1951. Does the Minister agree that this is a tremendous achievement and opportunity for Northern Ireland? Will he work closely with the Executive and the golf club to ensure that it is a success similar to that in Scotland last year, which brought £140 million into the economy?

Ben Wallace Portrait Mr Wallace
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I am struck by how much effort Northern Ireland has made in trying to secure becoming the new home of golf. The marketing and promotion of golf courses in Northern Ireland is a real strength. [Interruption.] I know Scottish nationalists are so insecure about everything that they may take issue with that, but what is good for Northern Ireland and golf is also good for golf in Scotland. It will go from strength to strength. Major sporting events, whether horse-racing or golf, bring in real money in today’s economy.

John Bercow Portrait Mr Speaker
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The Chair of the Select Committee wishes to undertake a practical inspection of the course.

Lord Dodds of Duncairn Portrait Mr Nigel Dodds (Belfast North) (DUP)
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I am sure we all look forward to visiting the Open in 2019.

Further to the Minister’s answer on infrastructure, will he undertake to speak to the National Infrastructure Commission and Treasury colleagues about transport links between Northern Ireland and the rest of the UK? This is an important issue. Infrastructure spending is vital for the development of Northern Ireland’s economy. This would be a very good way to ensure that more investment came to Northern Ireland.

Ben Wallace Portrait Mr Wallace
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I and my right hon. Friend the Secretary of State are determined to maintain air links. For example, when British Airways purchased Aer Lingus, we both had conversations with it over the past few months to ensure there was no degrading of the service provided to people at both main airports in Northern Ireland. We will work very hard, in partnership with the Executive, to maintain it. We should also point out that today’s economic figures for Northern Ireland are tremendously successful. It is the eighth successive month of growth, according to the Ulster bank purchase managers’ index. Over the year, the claimant count is down by 11,000 in Northern Ireland, a fall of 22.1%, outstripping the rest of the United Kingdom.

Lord Dodds of Duncairn Portrait Mr Dodds
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I join the Minister in welcoming that news, and I certainly pay tribute to colleagues on the Northern Ireland Executive for their excellent work on the economy and the new First Minister’s commitment to making economic growth her first priority.

At the last Northern Ireland questions, the Secretary of State undertook to speak to the Chancellor about linking Northern Ireland to the northern powerhouse. This is a very important initiative, and I would welcome any news of progress on that front. Will the Minister update the House?

Ben Wallace Portrait Mr Wallace
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My right hon. Friend the Secretary of State has spoken to the Chancellor, who I think is considering the matter as we speak. I fully support the initiative. As a Lancashire MP, I certainly know the importance of our links with the west, including the Isle of Man and Belfast, via the ferry at Heysham, for example. I think we can both work to our mutual advantage on the northern powerhouse.

Deidre Brock Portrait Deidre Brock (Edinburgh North and Leith) (SNP)
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Further to the question from the hon. Member for South Down (Ms Ritchie) about EU membership, would the Minister care to comment on a study by an Irish think-tank last year that said:

“Estimates…suggest that a Brexit could reduce bilateral trade flows between Ireland and the UK by 20 per cent.”

and that

“the expected impact of Brexit is likely to be more significant for Northern Irish exporters to Ireland”?

Ben Wallace Portrait Mr Wallace
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The hon. Lady asks if I would like to comment. The answer is no.

Lord Coaker Portrait Vernon Coaker (Gedling) (Lab)
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The Minister will know that there is very real concern in Northern Ireland about the impact of withdrawal from the EU on trade, investment and funding for various projects, as other Members have already mentioned. An Economic and Social Research Institute report at the end of 2015 said that a Brexit would have “very serious consequences” for the Northern Ireland economy. Has he discussed this matter with the Northern Ireland Executive?

Ben Wallace Portrait Mr Wallace
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Obviously I have regular discussions with Ministers in the Executive and the south of Ireland. Of course, an economic free zone in the EU, which we are part of, is important to our trade, not only for England but in Northern Ireland. The ability of the 34,000 businesses in Northern Ireland to trade without barriers across the border to the south is very important to its economy. That is why the Prime Minister wants Britain to remain in a reformed EU. The first thing we can do is wait to see what those reforms are.

Lord Coaker Portrait Vernon Coaker
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Notwithstanding that, the Minister will know there are very serious concerns in Northern Ireland about a possible Brexit, particularly because it is the only part of the UK with a land border with another EU country. Will he reassure the Executive and the people of Northern Ireland on this matter, in view of the mixed messages on Brexit emanating from the ministerial team? In particular, I am talking about his views, as opposed to the Secretary of State’s.

Ben Wallace Portrait Mr Wallace
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There is no mixed message. Both I and my right hon. Friend are keen for the EU to produce some reforms, as is the Prime Minister in his strategy. Perhaps the hon. Gentleman knows—perhaps he has a special hotline—what reforms the EU will agree. When those reforms are presented to the House, we will be able to make a decision. For my part, I believe that in the past membership of the EU has been good for Northern Ireland.

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Ben Wallace Portrait The Parliamentary Under-Secretary of State for Northern Ireland (Mr Ben Wallace)
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The Secretary of State and I have regular discussions with Treasury Ministers, including the Chancellor. The Government have concluded that a VAT cut for the tourism and hospitality sectors could not produce sufficient economic growth to outweigh the revenue shortfall. It would need to be funded either by additional borrowing or by the raising of other taxes, both of which are likely to have a negative effect on the economy.

David Simpson Portrait David Simpson
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The case was successfully made for corporation tax, and rightly so, to attract investment into Northern Ireland. Surely a case could be made, for tourism and hospitality in Northern Ireland, to reduce VAT, especially in respect of the golf clubs, where there is an anomaly across the board?

Ben Wallace Portrait Mr Wallace
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I do not think there are many Members who would not like to see a reduction of the tax burden. Because of our long-term economic plan and the lifting of burdens on businesses elsewhere—the small business rate relief that is also available in Northern Ireland, the corporation tax cut, the freezing of national insurance contributions and employer contributions—we hope that, at least for tourism businesses and the hospitality sector, the cost of employing people and the other burdens can be lifted. That would help businesses to make their prices more competitive to encourage more people to take up the great offering of tourism in Northern Ireland.

Kevin Foster Portrait Kevin Foster (Torbay) (Con)
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I would also—[Interruption.]. I would also like to ask about VAT. Will he perhaps look at the thresholds—[Interruption.]

Kevin Foster Portrait Kevin Foster
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We will try again, Mr Speaker; thank you. I have heard what the Minister said about the rate of VAT. Does he agree that it might be worth having discussions about the thresholds, which may help smaller businesses in the hospitality and tourism sector in Northern Ireland and across the rest of the UK?

Ben Wallace Portrait Mr Wallace
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My hon. Friend makes a good point. I will write to the Chancellor and make his points clear to him.

Cat Smith Portrait Cat Smith (Lancaster and Fleetwood) (Lab)
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7. What recent discussions she has had with the Northern Ireland Executive on the adequacy of women’s access to sexual health and family planning services.

Ben Wallace Portrait The Parliamentary Under-Secretary of State for Northern Ireland (Mr Ben Wallace)
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Northern Ireland Office Ministers have had no discussions with the Northern Ireland Executive on the adequacy of women’s access to sexual health and family planning services. However, Department of Health officials discuss sexual health matters with their counterparts in the Northern Ireland Departments as appropriate. Sexual health advice and services in Northern Ireland is a devolved matter.

Cat Smith Portrait Cat Smith
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The Minister will be aware that women in Northern Ireland can, and do, travel to England for abortions on the NHS. However, they cannot access NHS abortions; they have to pay to go privately. Does he agree that this is an inequality issue between women in Northern Ireland and women who live in, say, England?

Ben Wallace Portrait Mr Wallace
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The hon. Lady points out an interesting anomaly, and in advance of today I have asked my officials to provide clarity. I do know that there is a court case pending—or before the courts—in Northern Ireland on that very issue. It is important that we get to the bottom of the differences between living in one part of the UK and another and what NHS services are available.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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In the 11 years since 2004 Northern Ireland has seen a 47% increase in new cases of HIV while on the mainland it has fallen by 20%. The same situation applies to other sexually transmitted diseases. What discussions has the Minister had—or what discussions will he have—with Health Ministers here on the mainland and in Northern Ireland to ensure that there is an overall regional strategy to address this?

Ben Wallace Portrait Mr Wallace
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I am very happy to have discussions with UK Ministers on that subject and certainly will write to my counterpart in the Executive to make sure that both we and the Executive are doing our fair share to make sure that we prevent the spread of sexually transmitted diseases.

Alan Mak Portrait Mr Alan Mak (Havant) (Con)
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8. What recent discussions she has had with the Northern Ireland Executive on increasing exports.

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Flick Drummond Portrait Mrs Flick Drummond (Portsmouth South) (Con)
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10. How the Government plan to commemorate in Northern Ireland the centenary of the battle of the Somme.

Ben Wallace Portrait The Parliamentary Under-Secretary of State for Northern Ireland (Mr Ben Wallace)
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The Government’s events to mark the centenary of the battle of the Somme will be held in Thiepval, France and in Manchester on 1 July 2016. Other regional events, including in Northern Ireland, are a matter for the local authorities and local communities. [Interruption.]

John Bercow Portrait Mr Speaker
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Order. We are discussing an important centenary of the battle of the Somme. The question from the hon. Lady must be heard and so must the answer.

Flick Drummond Portrait Mrs Drummond
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Thank you, Mr Speaker. In 1916, men from the 36th (Ulster) Division and the 16th (Irish) Division displayed great courage at the Somme, despite suffering huge casualties, with almost 2,000 men killed in the first hours of 1 July. Does the Secretary of State have any plans to liaise with the Government of the Republic of Ireland to commemorate the sacrifice made by those from both sides of the border?

Ben Wallace Portrait Mr Wallace
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My right hon. Friend the Prime Minister is committed, along with the Taoiseach, to commemorating our past with mutual respect and understanding. The Secretary of State and I are working with Ministers in the Irish Government to mark the events of this decade. I have discussed these issues with a number of officials, and I regularly meet the culture Minister, Heather Humphreys; we often attend events together, as representatives of both Governments, in remembrance of those people who died. I know that my right hon. Friend the Prime Minister has visited the Somme to remember what happened there, and it is important to note that both the south and the north had a shared experience and a shared history in the first world war, with both suffering while fighting for the cause of defeating the Kaiser.

John Bercow Portrait Mr Speaker
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The Minister has treated the matter very comprehensively, and we are most grateful to him.

Gavin Robinson Portrait Gavin Robinson (Belfast East) (DUP)
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I am grateful to the Minister for his response. As we reflect on the Somme and move towards the centenary of the conclusion of the first world war, will the Secretary of State or the Minister engage across government with the Prime Minister to think of a suitable national memorial restoration fund to allow us fittingly to bring our cenotaphs and memorials across this country up to standard for the centenary?

Ben Wallace Portrait Mr Wallace
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The hon. Gentleman makes a good point and collectively the whole of the Government have heard his suggestion. It is important to remember the end as well as the beginning of the tragedy that was the first world war.

The Prime Minister was asked—