Northern Ireland Budget Bill

David Simpson Excerpts

2nd reading: House of Commons & 3rd reading: House of Commons & Report stage: House of Commons
Monday 13th November 2017 Commons Chamber

[James Brokenshire]

I agree with the right hon. Gentleman on accountability. The difficult job that the Northern Ireland civil service has had to do is effectively make its best assessment of the outgoing priorities of the outgoing Executive. It is worth noting that a lot of work was obviously done in the relation to the budget before the Executive collapsed at the start of the year—work that the parties had been engaged in closely with the Northern Ireland civil service. None the less, there are challenges and pressures in respect of how the civil service is having to operate under the emergency provisions of the Northern Ireland Act 1998, and issues about accountability and political decision making are felt keenly. There is a lack of accountability at the moment, which is why we want to see the Executive back up and running. Indeed, if an Assembly were restored quickly, the Assembly would be able to do that job. It would be able to look back at the budgeting arrangements and to carry out the normal level of scrutiny. I agree, however, that the situation is unsatisfactory, and we need to see progress and get the devolved Government back up and running at the earliest opportunity.

The powers that the Northern Ireland civil service has been exercising have their limits. Under section 59 of the 1998 Act and section 7 of the Government Resources and Accounts (Northern Ireland) Act 2001, the civil service may only issue cash and resources equal to 95% of the totals authorised in the previous financial year. The powers do not allow Departments to use accruing resources, meaning that the resources available to them are in reality significantly less than 95% of the previous year’s provision. Right hon. and hon. Members will recall that I set out in written statements in April and July an indicative budget position and set of departmental allocations based on the advice of the Northern Ireland civil service. In my written statement on 19 July, I said:

“The exercise of s59 powers cannot be sustained indefinitely”—[Official Report, 19 July 2017; Vol. 627, c. 56WS.]

Although we had not then reached it, I also warned that that critical point was approaching. The resource limits in the absence of a budget are now fast approaching. Without further action, there are manifest risks that the civil service would simply begin to run out of resources by the end of November. That would mean no funding available for public services, with all of the negative impacts that would accompany such a cliff edge. No Government could simply stand by and allow that to happen, which is why we need to take forward this Bill today.

[David Simpson (Upper Bann) (DUP)]

The Secretary of State says that only 95% of the budget was allocated. My understanding is that that 5% equates to some £600 million that has been delayed in coming to Northern Ireland. Will he put it on the record today that the party to blame for that is Sinn Féin for not bringing the budget when it should have brought it?

[James Brokenshire]

I understand the political point that the hon. Gentleman is making, and he highlights the challenges and pressures. The indicative budget arrangement has in effect meant that the Northern Ireland civil service has largely been able to operate on the basis of a full budget, which was one of the reasons why we set out the indicative arrangements with the affirmation that, should it come to it, we would bring forward a budget Bill. We are taking steps today to follow through on that, because of the need to have finances in place. We obviously have not had an Executive, which is why we are in this situation.

Efforts have been undertaken to find an agreement, and I commend the DUP for its work and the ongoing discussions with Sinn Féin to find that agreement. We want to see an enduring power-sharing Executive who are able to get on with the job and to make the high-level budget decisions that we are being forced to take in this Bill. I recognise, however, the frustrations that are felt right across Northern Ireland about not having an Executive in place that are able to make such decisions.

--- Later in debate ---

[David Simpson]

My hon. Friend has raised a number of points about different Departments. Does he agree that it is regrettable that agriculture will face a reduction of some 3.7%? It is vital that the animal standards and welfare—all of that—is taken care of as we leave the European Union, and that there is enough funding to eradicate tuberculosis.

[Jim Shannon]

I congratulate my hon. Friend on his hard work on the Select Committee on Environment, Food and Rural Affairs. He is studious, and he tells me that he will be working even harder than normal this week. The Committee is doing a lot of work, and I commend him for it.

I proudly wear a remembrance pin in my lapel today. My colleague asked my why, and it is to remember the UDR four—four young men murdered on the boundary of my constituency by the IRA at Ballydugan. I knew three of those young men personally. Justice for their families remains unmet, in this world at least, but they will get their answer in the next world—that is the way it should be. There is a day of reckoning for everyone, and those who have carried out evil deeds will one day be held accountable. The things that should be important to anyone, regardless of creed, class, colour or ethnicity, are all sacrificed for an ideal of a greater good that cannot change one person’s life or enhance it in any way—and all because people who are supposedly so principled refuse to stand up for their people today.

If a person in the street—nationalist or Unionist, Protestant or Catholic, or whatever their religion might be—were asked what is the most important thing, they will say education, health, the roads and getting the operations they want. Those are the issues in my office every day, as I suspect they are in the office of every Member here today; it is not the Irish language Act or those issues. The quicker that Sinn Féin catch on to what the issues are and, I say this with respect, the quicker the shadow Minister, the hon. Member for Ealing North (Stephen Pound) realises that, too, the better it will be and we will have an understanding in the Chamber of the real issues.

Sinn Féin are not here to speak for a solution. However, we are here, and we will continue to speak for the people of the Province in the best way we can. When I speak to constituents at home about the budget, they have highlighted many things, and my response has been steady and constant: direct rule is no good for Northern Ireland. It is not what I want, and I do not think it is what the people want. We are a party of devolution, as everyone in this House recognises. I am proud to be in this House, and this is the world’s greatest seat of democracy. I have watched direct rule, and I am of an age, as I suspect are many Opposition Members—with the odd exception or two; there might be a couple behind me—that remembers direct rule. Under direct rule we lost out on having an input on education and health, and most of our input was through the local councils or the Forum for Political Dialogue, as it started off, and then the Assembly. We lost out on those issues through direct rule.

I watched the Northern Ireland Office struggle under the weight of running an entire country, and I watched this place taken up with micromanagement, under which it is next to impossible to produce excellent results. I do not want direct rule, and neither do most people in this Chamber—most especially the Secretary of State in all likelihood—but we now have no other option unless good sense and a desire to do what is right appear.

I turn to today’s business and setting the budget. I have listened to my colleagues outline many of the pressing needs that must be addressed, and I wish to underline one of those needs in the short time I have remaining—the role of community funding. My right hon. Friend the Member for Belfast North (Nigel Dodds) spoke about that, and I do not think there is one Northern Ireland MP sitting here who is not faced with it every day. It is essential that the good work within our communities is enabled to continue. I have been contacted by the Eastend residents association, a great group in my constituency that applied for community funding through the social investment fund to build an extension on the community flat. The group provides a homework club, a pensioners club and a craft club, and it hosts a benefits advice centre and cross-party surgeries by elected representatives. The group is very much part of the community, across party politics. The group needs the extension to continue its work, and at this moment in time we are sitting in limbo; we do not know what is going to happen. We have waiting for years for the extension, and the SIF funding was granted.

I am given to understand that all commitments will be honoured, but my issue is twofold. How many other groups will not be able to grow because they have no mechanism to access capital spending? How can underperforming young Protestant men in my constituency get out of the rut in which they find themselves if they do not have the community influence and the funding to help them find what they excel at? That applies to all the community groups in my constituency. It applies to the Glen Estate, the West Winds, Bowtown, Ballygowan, Scrabo Estate, Saintfield, Ballynahinch and Crossgar community associations. Every one of those groups has a project that it needs completed. If we cannot get the money into those projects, we cannot get that done.

What about Home Start and Positive Futures? They are also organisations that are waiting on funding. We need this money, and we need this budget in place to make things happen. That also applies to domiciliary care and other care packages.

My second issue lies in the actual funding formula. The £15.7 billion figure included in the Government’s main estimate represents the cash grant payable to the Northern Ireland consolidated fund, which is also supplemented by funding from other sources, including the locally raised regional rate and borrowing under the reinvestment and reform initiative. That does not allow for any additional funding to be secured or raised.

The Secretary of State has been at pains to say that this is not direct rule and that it is simply allowing the Northern Ireland civil service to be allocated the funding as it believes has been agreed by the Department, but I believe there is no scope for political representation to change minds or to bring new information to light—some of my hon. Friends have referred to that. We are left with little accountability, which has previously been a huge problem in Northern Ireland.

I ask the Under-Secretary, in the absence of the Secretary of State, how the Government intend to ensure that this interim measure does not prevent worthy projects —I have named a number—and the groups involved from getting funding, as they would have under the guidance of a Minister, had one been in place.

I know that few answers can be given at this stage, but the truth is that people need answers. My constituents need answers and they need certainty. All our constituents need those things. Unlike those who are notably absent, the DUP, the biggest voice of Unionism, is willing to work with the Government to bring about stability. That is important for the areas of health and education, but stability is also necessary in non-ring-fenced areas. We are looking to the Secretary of State and to the Government to provide it. The time is fast approaching when they will have to take firmer steps to deal with the issue of blatant non-compliance by Sinn Féin.