Northern Ireland

David Simpson Excerpts

Tuesday 23rd April 2013 Commons Chamber

[Vernon Coaker]

I think it is a snapshot of opinion at a particular time. The agreement lays out procedures and processes for opinion to be tested at any time. The reality at the moment is that Northern Ireland is part of the United Kingdom, and the debate in this Chamber reflects that. The priority for people at present is to resolve some of the ongoing challenges that remain, and to see what more can be done with respect to decisions made here about jobs, growth and investment in all communities in Northern Ireland. I think that people would see that as their priority, whether they consider themselves to be British or Irish.

There is a worry that, in both loyalist and republican areas, there are elements who want to take us back to the bad old days, and that they might be gaining a foothold. The message that the whole House sends out is that they will not succeed.

With the marching season already upon us, I want to make it clear that there is no justification for riots or attacks on the police. The rule of law, including the decisions of the Parades Commission, must be respected and upheld. The peace process shows that, however difficult, in the end dialogue works, so I encourage everyone who wants a peaceful summer in Northern Ireland to talk as neighbours, not enemies, in a spirit of understanding and to find a way forward on contentious issues, such as flags and parades. Like the Secretary of State and the Minister, I would like to do what I can to help facilitate those discussions.

These are difficult economic times. On the economy and welfare, the Government’s policies, decided here, have an impact in every community in Northern Ireland. Last week’s figures showed unemployment in Northern Ireland at a record high of 8.4%, with almost one in four young people out of work, while 20,000 families with children have lost out because of changes to tax credits. Earlier this year, the Chartered Institute of Housing estimated that the bedroom tax would affect 32,000 people in Northern Ireland and have a disproportionate impact because the vast majority of social housing stock in Northern Ireland comprised large family homes. There simply are not the smaller properties for tenants to downsize to.

On corporation tax, we had two years of dither and delay, with the promise of a decision last month, but all the Prime Minister said was that we would have to wait until after the Scottish referendum. Northern Ireland’s economy, like the economy of the rest of the UK, cannot wait until 2014; we need to get moving now. We need a plan for jobs and growth and a plan B for Northern Ireland’s economy to get people, particularly young people and those who have been out of work for a long time, back to work, and to bring investment into Northern Ireland and help small businesses to grow. With proposals for a tax on bank bonuses to tackle unemployment, a temporary cut to VAT to boost demand and the bringing forward of infrastructure projects, we want to support the Executive to get the economy on the right track.

Big challenges remain, and not just on security and the economy, and the Governments in London and Dublin need to continue to help Northern Ireland to meet them. That includes taking responsibility for dealing with the past. For Northern Ireland to move forward, it must agree a way to deal with the legacy of the troubles, the death of 3,000 people and the injury and trauma of tens of thousands more. We are clear about the need for a comprehensive and inclusive process to deal with the past, at the heart of which should be the victims and survivors.

[David Simpson (Upper Bann) (DUP)]

The hon. Gentleman mentioned the Parades Commission earlier. He will be aware that some of us believe that the commission is part of the problem, not part of the solution. Surely it is time we had a clean sheet of paper to consider some other process for dealing with the parades issue. It is a vital part of Unionist culture, and we need to address it, otherwise we could be in for a difficult summer.

[Vernon Coaker]

I understand the hon. Gentleman’s point. Of course, if the Executive and the parties in Northern Ireland have an alternative to the Parades Commission that they feel would better facilitate parading and deal with some of the issues, that would be a matter for discussion and change, but until such a time, the commission’s decisions are the law of the land, and as such they need to be adhered to. I understand his point—people often make it to me—but at the moment its decisions are the law of the land. It determines the routes and some of the conditions for parading, and we need to adhere to them. If we need an alternative, people must come forward with proposals, but until then, the commission makes the decisions. I know he agrees that it is crucial that the police do not make those decisions. If the current situation is unacceptable and people feel the need for change, it is incumbent on everyone to consider what that change would be.

--- Later in debate ---

[Mrs Villiers]

I hope that the hon. Gentleman will welcome the fact that the Government are planning to reduce corporation tax across the UK economy. The Prime Minister has also set a clear pathway to a decision on whether corporation tax decisions could be devolved to Northern Ireland. The reality is that significant technical issues need to be resolved before a decision can be taken on the principle of whether to devolve the power. There are also wider constitutional issues to be considered in the context of the referendum on Scottish separation.

Significant economic responsibilities are retained by Westminster, and I am working with the Northern Ireland Executive on our shared objective of rebalancing the economy by boosting the private sector and pursuing a strongly pro-enterprise agenda. That is why we are cutting corporation tax from 28% under Labour to just 20% by 2015—the lowest rate in the G7 and joint lowest in the G20. The Prime Minister has made it clear that a decision on whether to devolve the setting of corporation tax rates to the Northern Ireland Assembly will be made in the autumn of next year.

Our deficit reduction programme has helped to keep interest rates at record lows, helping businesses and households across Northern Ireland, and our new employment allowance will see national insurance cut for 25,000 Northern Ireland businesses, with 10,000 small and medium-sized enterprises paying no tax on jobs at all. This will provide better help for business than Labour’s one-off national insurance tax break.

We have exempted Northern Ireland electricity generators from the carbon price floor, to provide a level playing field with the Republic. That was a key ask from the Northern Ireland business community, as well as from the Executive. We have also devolved long-haul air passenger duty to help to save our direct air link with the United States, again at the direct request of the Northern Ireland Executive.

[David Simpson]

The Secretary of State will know that her predecessor made a big play for enterprise zones in Northern Ireland. Is that still part of the coalition’s plan?

[Mrs Villiers]

We certainly believe that enterprise zones such as those being established in England, Wales and Scotland can play a positive part in boosting the private sector and in job creation. Our conversation with the Executive on a fresh economic package to provide additional help for Northern Ireland includes looking again at enterprise zones, to see whether we can make them attractive to the Executive.

Access to the £2.1 billion Aerospace Technology Institute will strengthen Northern Ireland’s reputation as a centre of excellence in aerospace. Also, when I met representatives of HBO in New York recently, I heard at first hand that the Chancellor’s tax relief for high-end TV production was crucial to delivering HBO’s plans to film a fourth series of “Game of Thrones” in Belfast, with all the job opportunities that that will provide.

The Budget gave the Executive an extra £94 million of capital spending, bringing to £900 million the total additional funding provided to Stormont since the last spending review. The Prime Minister announced in March that Northern Ireland would receive an extra €181 million of EU structural funds above what would have been the case if the Government had stuck to the European Commission’s recommended formula. The size of the block grant for Northern Ireland means that public spending per head continues to be 20% higher than the UK average.

We are delivering a £700 tax cut for over 600,000 working people in Northern Ireland, and taking 75,000 of the lowest paid out of income tax altogether. We have dealt with the collapse of the Presbyterian Mutual Society and ensured that smaller, more vulnerable savers got most or all of their money back. Our welfare reforms, bitterly opposed by the Labour party, will ensure that work always pays and that people cannot take home more in benefits than the typical family earns by going out to work. These are the measures of a Government who are on the side of those who want to work hard and get on in life.

As for the comments of the hon. Member for Gedling on the spare room subsidy, I recognise how sensitive this issue is, particularly for Northern Ireland where so much social housing is still segregated. The reform we are making brings the social rented sector into line with the rules that the previous Government introduced for the private rented sector. We owe it to all people on housing waiting lists or living in overcrowded accommodation to use our social housing stock as efficiently as possible. A £3.4 million fund has been set up to help in hard cases, which has been doubled by Nelson McCausland over the spending review period. Discussions with the Northern Ireland Executive are continuing on whether they might fund a different approach on the spare room subsidy—at least until the Northern Ireland housing stock has more one and two-bedroom homes.