Northern Ireland (Ministerial Appointments and Regional Rates) Bill

David Simpson Excerpts

2nd reading: House of Commons
Monday 24th April 2017 Commons Chamber

[James Brokenshire]

The right hon. Gentleman makes a powerful and important point about the incredible job that the PSNI does, the contribution that it makes and what that often means for its officers. I have a huge amount of respect for their professionalism and the personal dedication that they bring. I am sure the whole House would wish to underline that message of support for the incredible job that they do.

Moving on to the Bill, I have updated the House twice on the political situation in Northern Ireland in recent weeks: in my oral statement on 28 March and in my written ministerial statement last week. On both occasions, I set out that I would seek to bring forward legislation with two aims in mind: to provide the legal basis for an Executive to form, and to set a regional rate to enable that important source of revenue to be collected. As we approach the final week of this Parliament, now is the right time to deal with both those matters, in order to provide greater certainty for the people of Northern Ireland and to provide the opportunity for the parties to come together to secure the resumption of devolved government.

The background leading up to the introduction of the Bill will be familiar to many in the House. The collapse of the previous Executive in January placed a duty on me to set a date for a further election. I did so in January, and the election itself was held on 2 March. Since then, the UK Government have been engaged in talks with the political parties and, as appropriate, the Irish Government, in accordance with the well-established three-stranded approach. The talks have had one clear purpose: to re-establish an inclusive, devolved Administration in line with the 1998 Belfast agreement and its successors. Progress was made on several fronts during that phase on the formation of an Executive, including the budget and programme for government.

There was progress on legacy, too. Constructive discussions took place with all the parties on the detail of the legacy institutions set out in the Stormont House agreement and on the need to reform legacy inquests. Although no one will underestimate the challenge of addressing the legacy of the past, the proposals are now sufficiently developed that the next step should be to publish them for consultation. That way, we can listen to the views of victims and survivors and all those who will be most affected by the proposed new institutions.

Despite the progress that was made, there remains a defined number of outstanding issues on which there is a lack of agreement between the parties, and it was clear that a period of reflection was necessary to give the impetus for the discussions to conclude positively. It was with that in mind that the talks were paused over Easter. Since then, meetings have continued between the parties. The restoration of devolved government remains achievable, and it remains the absolute priority. It will, though, require more time and more focused engagement by the parties on the critical issues that remain, building on the discussions over the past seven weeks. The Bill would provide the space, and the opportunity, for the parties to do just that. We will remove the current legal barriers so that the Assembly can meet and an Executive can be formed at any point from Royal Assent to 29 June—three weeks after the general election.

We recognise that there will be focus on the general election, which is why the Bill provides parties with the scope and space to continue discussions to resolve their outstanding issues, while providing a period of reflection for the new Government if a deal still does not prove possible. That said, it remains highly desirable for the parties to continue to work to make progress quickly for the reasons that I have set out, and this Bill does not preclude the formation of an Executive sooner if the parties wish that to happen. That is an important point. In passing this Bill, we make it clear that the responsibility now lies with the parties to come together and make progress, and as I have indicated, I strongly believe that that can still happen. We have removed the legal barrier to progress, enabling an Executive to form without the need for a further Assembly election. If the parties have the will to make progress between now and the end of June, the platform is in place for them to do just that. In the meantime, we should not lose sight of the benefits that an agreement would have for the people of Northern Ireland. I am sure that that will be the hope of those voters who gave the parties a mandate on 2 March.

I pay tribute to the Opposition for their constructive and positive engagement in the process leading up to the introduction of this Bill. I pay particular tribute to the hon. Member for Blaydon (Mr Anderson) who may be making his final appearance at the Dispatch Box as shadow Secretary of State for Northern Ireland. Despite our broader political differences, I thank him for the overall support that he and his party have given me since I became Secretary of State in July. Northern Ireland undoubtedly benefits from the broadly bipartisan approach that we take in this House and, whatever the result of the general election, I hope that that will always continue. I wish him all the very, very best for the future. I know that his presence will be missed by many across this House who will wish him well in whatever new opportunities and new challenges he takes forward.

Moving to the substance of the Bill, clause 1 would remove the present legal barrier to an Executive being able to form to implement any deal that has been reached. It would retrospectively reset the 14-day clock in the Northern Ireland Act 1998, which expired on 27 March, with a 108-day period, removing the present duty on me to set a date for an election, with it arising again at 4 pm on 29 June if an Executive have not been formed by that point. This will provide the space for an Executive to form, and makes it clear that the responsibility for progress lies with the parties—indeed that duty to form an Executive and appoint Ministers in that process. As necessary, it would provide a period for further talks in the new Parliament, allowing all sides to take stock and move forward if a deal is not already in place. It would also mean that, if a deal is not struck, there is a period for the new Government properly to consider the way forward. That is important. In the absence of a deal, significant decisions will need to be made in the new Parliament to provide political stability in Northern Ireland. However, it will be for the parties to seize the opportunity, whether in the coming weeks or soon after, to deliver the Executive that they have so clear a mandate to secure.

I have mentioned the two acute issues of financial uncertainty caused by the lack of an Executive. The first is the absence of a 2017-18 regional rate, which represents more than 5% of the total revenue available to the Northern Ireland Executive. Normally, this would have been set by the Department of Finance earlier this year, via an affirmative rates order in the Assembly. That would have enabled bills to be issued in 10 instalments, giving certainty to ratepayers and allowing various payment reliefs to be applied. However, time has nearly run out for that course. If no rate is set in the next few days, there will be fewer bills in higher instalments, and the longer it takes to set a rate, the worse that situation will become. The only outcome would be bad debt, lost revenue, uncertainty and hardship.

Although we are clear that this is a devolved matter, we are also clear that only the UK Government can take action to secure the interests of individuals, businesses and indeed the Executive. Clause 2 would address the issue by setting a 2017-18 regional rate in Northern Ireland. It does so by setting “pence per pound” rates for both domestic and non-domestic properties. These rates represent a 1.6% inflationary increase, the same approach as was taken by the Executive in setting a rate the year before. As we make clear in subsections (4) and (5), it would not cut across the continuing right of the Executive to set a rate by order in the usual way, so this would be the most limited step available to us, taken at a point beyond which we cannot delay.

[David Simpson (Upper Bann) (DUP)]

The Secretary of State is outlining very well the business that this House may have to do and the business that he has to do today. But does he accept that we would not be in this place were it not for the arrogance of Sinn Féin, who walked away from the Executive and left Northern Ireland in the predicament we are in today?

[James Brokenshire]

What I can say to the hon. Gentleman is that in the recent election a clear mandate was set for the resumption of an inclusive devolved Government in Northern Ireland, and the focus needs to lie on that, on getting the Executive back into position and on dealing with the differences between the parties in Northern Ireland. We should all feel a responsibility for seeing an Executive back in position, working to serve the best interests and needs of the people of Northern Ireland. Ultimately, that is where our absolute and resolute attention should lie.

For completeness, although it is not covered in the Bill, I should say that the second financial matter is the lack of a 2017-18 budget. Its absence has meant that since the beginning of this month civil servants alone have been in charge of allocating cash, which is clearly not an acceptable solution for the longer term. Before Easter, therefore, I made it clear that I would provide further assurance in that regard if an Executive were not in place, consistent with the UK Government’s ultimate responsibility for political stability in Northern Ireland, so I wish to take this opportunity to provide further clarity to people, businesses and public services in Northern Ireland.

We very much hope, as I have said, that we will see an Executive up and running as soon as possible, but if that does not prove possible, I want to put on record that this Government would be prepared, as a last resort, to pass an Appropriation Act in the next session to provide legislative authority for the expenditure of Northern Ireland Departments. That is not a step that any Government would take lightly, but this House must not forget the duties we must uphold for the people of Northern Ireland.