Oral Answers to Questions

David Simpson Excerpts

Wednesday 14th October 2015 Commons Chamber

[Mr Wallace]

I thank my hon. Friend for her question, and what she says is right. Given the right stimulation, it is certainly possible for Northern Ireland’s private sector to grow strongly. That is why I was delighted to see that foreign direct investment in Northern Ireland has created 4,700 jobs—the number is comparably higher than that for the rest of the UK.

[David Simpson (Upper Bann) (DUP)]

I am sure the Secretary of State will agree that in order to strengthen the economy in Northern Ireland it is imperative that the talks taking place in Belfast are successful, with welfare reform implemented, so that we can get our corporation tax and other financial incentives. If they are not, companies will start to get nervous about investing in Northern Ireland.

[Mr Wallace]

I could not agree more, and the prize is great. By completing the Stormont House agreement and unlocking the economic pact, Northern Ireland can deliver an enterprise zone and a city deal for its people. Those two things, added to the UK Government’s economic policy, will deliver continued economic growth for Northern Ireland.

Stormont

David Simpson Excerpts

Monday 12th October 2015 Commons Chamber

[David Simpson (Upper Bann) (DUP)]

It is good to follow the hon. Member for Torbay (Kevin Foster), a lovely part of the world, and to hear his contribution. I am glad to have this opportunity to take part in the debate and to say a few words, but I will be brief as I know there are still a few Members who want to contribute. We have had so many debates in this Chamber about Northern Ireland, and I have listened with interest to the speeches tonight.

We have had a number of history lessons going back to the 1970s and 1980s, but the general public out there in Northern Ireland want to know where we go from here. Make no mistake—the Assembly is in a crisis. As we have this debate here tonight and as we discuss other issues tomorrow and on Wednesday, the discussions will be ongoing in the Assembly to try to find a resolution to the issues and concerns that there are in the structures of the Northern Ireland Assembly. Any deal or understanding that we come to at the end of these talks, and any agreement, if there is one, needs to be comprehensive. It needs to deal with the issues that were agreed in the Stormont House agreement.

Unfortunately, a number of parties reneged on that. Although we know the reputation of Sinn Féin and we know its links to the provos, as history has shown us, I am extremely disappointed in the stance of the SDLP. On SDLP Members’ understanding of economics, the hon. Member for Foyle (Mark Durkan) is a former Finance Minister so he understands finance, or he should understand finance. Every Member of this House will understand that if there is no money in a business, cash flow stops. It is all over. That is exactly the problem in Stormont.

Yes, we have had a murder on the streets of Belfast, and that is important. Blood on the streets of Belfast—we cannot ignore that; it must be dealt with. The paramilitaries must be dealt with, whether they be republicans or loyalists. They need to go away, in the words of the Secretary of State. But without money one cannot run a business. That is the problem of the Assembly. Welfare reform needs to be agreed, and quickly.

The point was made earlier that we are handing back tens of millions of pounds to the Treasury. Where is the business sense in that? Why? Because Sinn Féin and the SDLP, but more so Sinn Féin on this issue, are facing elections in the Republic of Ireland and they believe that it will have a detrimental impact on them if they agree to welfare reform. Welfare reform has to be implemented. The Government and the Prime Minister only recently said that there was no more money. Do we like that? No, but we have to go with it because there is no finance. Stormont needs to be resolved. We are a devolutionist party, and I believe that Northern Ireland is ruled better from Stormont, but there must be trust. At present the trust is not there. It needs to be re-established.

Northern Ireland

David Simpson Excerpts

Tuesday 15th September 2015 Commons Chamber

[Mrs Villiers]

I do recognise that point. The hon. Gentleman’s party leader, Mike Nesbitt, has made it very clear. I reiterate that it is essential that both those questions are resolved. Both cause a huge threat to the sustainability and future success of the institutions. Therefore, both must be addressed.

[David Simpson (Upper Bann) (DUP)]

I am sure that the Secretary of State will agree that with all the punishment beatings, the shootings, the murders, the 160 criminal gangs operating on both sides of the border, and a fuel-smuggling organisation run by republicans that is the second best to western Europe, this is an unacceptable society for the people of Northern Ireland. A group of people who have been forgotten about—the wounds are being opened again—is the victims. We saw some of that yesterday on TV. The wounds are being opened again and people are suffering again. That is an intolerable situation to be in.

[Mrs Villiers]

It is always important to have a reminder of the interests of those who have suffered most as a result of the troubles and the terrorism that took place. The hon. Gentleman is right to highlight the problem in Northern Ireland of so-called paramilitary assaults. These things are utterly unacceptable. For people to seek to take the law into their own hands is just an excuse for violent thuggery. Many people have lost their lives or suffered permanent disability as a result of those assaults. That is one reason why we need to address urgently the role of the continuing paramilitary organisations, so that we can finally see an end to what really is a scourge on Northern Ireland’s society.

Northern Ireland: Political Situation

David Simpson Excerpts

Tuesday 8th September 2015 Commons Chamber

[Mrs Villiers]

I thank the hon. Gentleman for his questions, which raise what will be one of the most urgent issues to address when the talks are held over the coming days: how we deal with this situation in relation to paramilitaries. We have heard one suggestion about whether we need a revival of the Independent Monitoring Commission—some form of re-verification and assessment so that people can have a clearer understanding of the facts around the continued existence and activities of the paramilitary organisations which persist in Northern Ireland. We also need to consider how we can work together as a society to do more to reach a place where these organisations disband once and for all.

I have the NIO resources I need. I have good people working with me in the NIO, but of course of crucial importance will be the determination, the resources put in and the efforts made by Northern Ireland’s political leaders. On matters where they are responsible, we will be working with the Irish Government, too.

[David Simpson (Upper Bann) (DUP)]

The Secretary of State will have heard the comments from Members from all parts of the House about the frustration, the lack of confidence and so on. She has said that whatever resources are required to resolve a number of the issues to do with the murders or the criminality will be given, but the general public’s attitude is that these are words and we are not getting results. The criminality is costing the economy of Northern Ireland and the British Exchequer hundreds of millions of pounds a year—the price of a new hospital. The frustration is there, so what more can she do to help the PSNI to resolve cases of fuel smuggling in South Armagh?

Cross-border Crime

David Simpson Excerpts

Wednesday 11th March 2015 Commons Chamber

[David Simpson (Upper Bann) (DUP)]

I think the Minister said—I stand to be corrected on the exact wording—that the Government were confident that the marker would work, but a test carried out in Bellingham with Queen’s university and others, to which HMRC had to be dragged kicking and squealing, along with the Irish Revenue, proved that the Dow marker could effectively be removed by simple distillation. We must have confidence in the marker, but this one cannot do it.

[Dr Murrison]

I am certainly not going to assert that any marker or anything added to a substance is incapable of being removed, but clearly it is perfectly possible to launder fuel at the moment—it happens all the while—and although the pattern of fuel laundering is changing, as was touched upon by the hon. Member for Belfast East (Naomi Long), nevertheless it remains and brings with it financial and environmental costs, and costs in terms of criminality, security and all the rest of it. I am advised that the new marker, which we will introduce in May, is an improvement on what we currently have.

[David Simpson]

indicated dissent.

[Dr Murrison]

I am sorry if the hon. Gentleman does not agree, and I am sorry if I cannot give him an absolute assurance that any substance we add could never be removed, but he will have to accept that it is an improvement on what is happening at the moment, which is patently inadequate.

[David Simpson]

indicated dissent.

[Dr Murrison]

Well, I look forward to the hon. Gentleman’s remarks when he makes his contribution.



Mention has been made of fraud and tobacco—topical given the deferred Division at lunchtime. To be clear, our aim is to maintain the downward pressure on the illicit market in cigarettes and hand-rolling tobacco. HMRC’s anti-smuggling strategy is effective and has been adapted continuously to deal with changes in criminal behaviour. Since HMRC first launched its strategy to tackle tobacco smuggling, the illicit cigarette market has reduced by half and the illicit hand-rolling tobacco market by a third, which is substantial.

The motion refers to greater co-operation between the PSNI, the NCA and HMRC on combating serious criminal activity. This cuts to the heart of today’s debate and the point on which we pin so many of our hopes for the future. Extensive multi-agency cross-border co-operation is a key element of the operational response to fuel fraud. HMRC chairs a multi-agency cross-border fuel fraud group that meets quarterly and has representatives from HMRC, the Northern Ireland Department of the Environment, the NCA, the PSNI, the Northern Ireland Environment Agency and their Republic of Ireland equivalents. This group shares intelligence and information on operational activity, as well as co-ordinating joint operations. The joint UK-Irish project that identified the new fuel marker is a prime example of that co-operation, notwithstanding the remarks from hon. Gentlemen this afternoon.

I am delighted that the House has agreed legislation to extend fully the remit of the NCA in Northern Ireland. This follows the vote in its support last month in the Northern Ireland Assembly. Serious and organised crime groups do not operate in isolated pockets of each region, and nor do they respect borders or force boundaries. The PSNI estimates that there are between 140 and 160 organised crime groups active in Northern Ireland and 800 active criminals. Nearly one third of these groups are assessed as having links to international criminality, and another third are linked to criminality in the UK and the Republic of Ireland.

Since it was created just over a year ago, the NCA has begun to make a real impact on the threat to the UK from serious and organised crime, but until now the fight against such offences in Northern Ireland has been inhibited. There have been a number of significant PSNI investigations that the NCA would have been better placed to lead, given that key criminals and their associated infrastructure have been based outside Northern Ireland. It has also been difficult for PSNI to access the specialist resource and capability that the NCA holds. Northern Ireland has been left at a greater risk from child sexual exploitation, cybercrime and economic crime because the specialist resources that the NCA has developed have not been available.

Civil recovery has been affected. Since June 2013, civil recovery investigations are down by more than 50% and property-freezing orders by more than 70%. This is worrying, because denying criminals the proceeds of crime is one of the most effective ways we have of disrupting their activities. However, the NCA will soon be able to deal with serious and organised criminals—no matter where they are—and I am confident that the people of Northern Ireland will now have the same protection against serious and organised crime as those in the rest of the UK. That is surely their right.

As I have said, we do not doubt the seriousness of these types of criminal activity and the harm they cause to society and security. We and devolved colleagues are, as I have outlined, working in co-operation with partners elsewhere to address these problems vigorously. There is often close co-operation with counterparts across the border, and I would say that it is increasing, but we need at all times to ensure that the fullest pressure is maintained on the perpetrators, wherever they may be, and the Government will seek to go on doing just that.

--- Later in debate ---

[David Simpson (Upper Bann) (DUP)]

It is a great privilege to speak in this timely debate. We have debated this subject before. The Northern Ireland Affairs Committee has done a report on it, and it has been ongoing for some time. My hon. Friend the Member for East Londonderry (Mr Campbell) used the word “Horlicks”—and that is exactly what this is. It is costing the Exchequer hundreds of millions of pounds. I predict that the Government will introduce this Dow marker, and it will not reduce the problem. That is my prediction, because the tests we have witnessed and those that have been carried out show that it does not work.

I will be brief as I know other Members wish to speak, but I need to put a number of questions to the Minister. Can the Minister or his officials tell us why Dow Chemical Company was not thrown out of the IMS—invitation to make submissions—tendering process for the marker under European law, when in 2013 it was fined $1.1 billion for fraud? It was fined $1.1 billion, yet it is part of the tendering process, and we are about to introduce a dye that comes from that company.

The Minister was asked a question earlier to which we did not get an answer, but perhaps his officials or the representation from Her Majesty’s Revenue and Customs today can provide the answer: why was this technology awarded to Dow with no roadside test when the other, British recommended company had a roadside test?

A number of years ago—maybe 10—I was asked to pay a visit to South Armagh by a political activist who lives there. He rang me and said, “David, you have raised issues of fuel smuggling. Would you like to see some of them?” I spent the day going around 15 distilleries and seeing their fuel laundering equipment—or whatever the terminology is—and got within 100 metres of Slab Murphy’s house and his laundering facilities. We moved back up the road a mile, on a hill, and the lorries were freely going in and out of Slab Murphy’s facilities, with nothing being done about it—absolutely nothing.

Right up to the present day, no one has been imprisoned for this. The Minister corrected one of my colleagues on the subject of prosecutions, but this is costing the Government and the taxpayer hundreds of millions of pounds. We spoke earlier about the budgets. There is no money in the budgets, and I understand that there are to be further cuts after the general election to try to clear the deficit. There will be issues if that is the case, because we are suffering and the amount being lost to the Revenue every year could be used to build several hospitals.

[Dr McCrea]

Is my hon. Friend talking about the same Slab Murphy whom Gerry Adams described as a decent businessman?

[David Simpson]

Yes, absolutely.

After we had seen the activity I have just described, we reported it to what was then the RUC, and several moves were made to close some of the laundering facilities. These activities are unfair to the ordinary everyday workers and businessmen in Northern Ireland who are doing their best to pay their taxes and keep their businesses going. They are completely above board, yet other individuals are profiting from their activities. That is totally wrong, and it has been going on for far too long.

Whether the Minister has been furnished with all the information or not, the information I am giving him is factual, and my hon. Friend the Member for North Antrim (Ian Paisley) will certainly be able to give him a lot more when he winds up the debate. This issue needs to be got right. It has gone on for far too long and it has become a laughing stock. At the beginning of the debate, it was suggested that this arrangement might have been a pay-off for the republicans. When we were talking about the National Crime Agency earlier today, someone in the House remembered that the deal involved 2p to the pound. I would hate to think that any Government had done any kind of deal with republicans and criminals or given them 2p to the pound to keep their mouths shut. It would be a travesty if that were the case. There is something rotten about this whole process and system. There is something wrong and we need to get to the bottom of it.

[Dr McCrea]

This might be a laughing stock, but it is certainly no joke. This is a very serious matter. Did my hon. Friend hear the hon. Member for Birmingham, Erdington (Jack Dromey) say that the British-Irish grouping went out on a fact-finding mission and saw 12 of these facilities in operation? If they could see 12 of them operating on that one day, where was HMRC and where were the authorities at the time?

[David Simpson]

My hon. Friend is absolutely right to ask that question. Someone was sleeping on their watch, if indeed they were watching at all.

I have another question for the Minister. Why would the Government not support their own world-leading British science company when its fuel markers are the only IMS-proven indelible markers that are recommended? I want to ask him a further question. Given that the IMS is a joint UK-Republic of Ireland process, why was a single Dow marker IMS awarded when the Government knew that they needed a minimum of two indelible markers? I have asked a series of questions. I do not expect to get the answers today, but it is important that we try to get to the bottom of this.

[Dr Murrison]

Perhaps I can write to the hon. Gentleman with a fuller account if he wants me to. This whole debate appears to be revolving around the Dow marker. That is fine, but hon. Members need to understand that the tendering operation was free and open. The Government are bound by rules in that respect, so there was no shady deal in which a British company was disadvantaged or in which Dow was given preference. That would have been madness. The alleged laundering method does not appear to be a viable large-scale proposition. I cannot give the hon. Gentleman the assurance he seeks that a marker exists that can never be removed. The experiences in the laboratory and in the field are very different, as I think he will probably, on quiet reflection, understand.

On the other point about markers and whether we would be able to detect at the roadside whether something was illicit or not, clearly we are not going to remove the marker we already have until we are completely happy with the new one and it is proven. So the hon. Gentleman can be assured that the two will run in parallel and, thus, there will be no disadvantage. I am hopeful that the new marker will be an advantage, but certainly we will be running the two in parallel. I hope that gives him some reassurance.

[David Simpson]

Not really, but I will say something about the process. My understanding is that a year ago the Dow marker was tested and found not to work, yet a year down the road we are introducing it. I cannot understand that. If something does not work, why are we spending millions of pounds on introducing it? We are trying to get to the bottom of this and we need the proper marker introduced.

[Jack Dromey]

The Minister said he is “hopeful” that it will work, but I am not sure that will inspire confidence. Does the hon. Gentleman agree that when the Minister said that the Government were bound to accept the bid—suggesting that because it was a cheaper bid they were bound to accept it—that was not a correct reading of, among other things, European procurement rules, because ultimately what is procured has to work?

[David Simpson]

We do not necessarily have to take the cheapest option—it has to work.

[Dr Murrison]

I understand that 23 markers from 12 companies were assessed side by side, and clearly the one that worked was chosen. I hope that is helpful.

[David Simpson]

As I have said, time will tell. I think this is going to be an expensive exercise that will be proven in time to be not as effective as the Minister has been led to believe.

[Dr McCrea]

If we are introducing something, surely it must work—millions of pounds will otherwise be lost to the Exchequer. If those millions of pounds are not needed here, I assure hon. Members that they would be very welcome in the coffers of the Northern Ireland Executive, given the deficit we face. Surely this has to work and we have to be sure that it works. We are not doing this on a trial-and-error basis; we have to be sure that we have something that works.

[David Simpson]

I thank my hon. Friend for his intervention, because he is correct about that. The matter is too serious for the marker not to work. This situation has been ongoing, and the amount of money that has been lost and wasted over the past 10 to 15 years—or longer—is just horrific. It could have done a lot to help many vulnerable people, not only in Northern Ireland, but on the mainland. We are where we are and time will tell, but I know my colleague will have a few other statistics and figures to give in his winding-up speech.

Oral Answers to Questions

David Simpson Excerpts

Wednesday 28th January 2015 Commons Chamber

[Mrs Villiers]

As I said, the resource position for the police has been improved with the changes in the draft final budget. The position of the police would be further improved if the NCA were to operate to its full capacity in Northern Ireland, because at present the PSNI is doing work that would otherwise be done by the NCA. The establishment of the Historical Investigations Unit in the coming months will further relieve the PSNI of responsibilities in relation to policing the past, freeing up time and resources for policing the present.

[David Simpson (Upper Bann) (DUP)]

Does the Secretary of State agree that as well as securing resources for security for the PSNI, we need to focus on rural crime, attacks on our elderly and the drugs issue, all of which are increasing in Northern Ireland?

[Mrs Villiers]

These matters are crucially important. The crime figures in Northern Ireland continue to make it clear that Northern Ireland is one of the safest places in Europe and has some of the lowest levels of crime, but I know that the PSNI takes very seriously the regular crime that is the bane of people’s lives and is working hard to combat it, in addition to its duties in relation to national security.

Corporation Tax (Northern Ireland) Bill

David Simpson Excerpts

Tuesday 27th January 2015 Commons Chamber

[Mr Owen Paterson (North Shropshire) (Con)]

I was never quite sure that we would see this day. I heartily congratulate my successor as Secretary of State and the Financial Secretary on following this proposal through from the dark days when it was knocked on the head.

For the benefit of the shadow Secretary of State, I will go over the history of the proposal, because he does not realise the enormous benefit that it could bring to Northern Ireland. I see it as the coalition Government’s opportunity to deliver a long-term benefit to Northern Ireland as big as that brought by the Belfast agreement.

When I was appointed shadow Secretary of State for Northern Ireland, most of the major negotiations had gone through, although we had not quite got policing and justice through. I made it my business to go to Northern Ireland every week. I found an economy that was dependent on public spending for 77.6% of its GDP. We all know the horrible historical reasons for that, but it was clearly unsustainable.

On my weekly visits, I found world-class businesses and very skilled people. There were businesses that had come in, often tempted by the generous grant regimes, that were very pleased with the quality of the work force and the education of the staff. However, time and again, we found cases of large investment opportunities being missed because of corporation tax. The hon. Member for East Londonderry (Mr Campbell) is not here, but I remember a very clear case where a big investment could have gone to East Londonderry, but it went to Letterkenny. With the deepest respect for Letterkenny, it is quite a small provincial town.

[David Simpson (Upper Bann) (DUP)]

I pay tribute to the right hon. Gentleman for all the work he did in Northern Ireland as Secretary of State and before that. He had several meetings in my constituency with companies. I want to put it on the record that he was a great enthusiast for this proposal, which has eventually arrived.

[Mr Paterson]

I thank the hon. Gentleman for his kind comments.

I would like to stress that this has ultimately been a team effort. I will list the people who have been involved. This proposal came from a black moment. I have cited the examples that I saw on the ground in Northern Ireland. At the time, a parallel process was going on. The last Government had asked Sir David Varney to conduct a report on the benefits of introducing a lower rate of corporation tax for Northern Ireland. In parallel, significant major figures in the business community were involved. The sadly late Sir George Quigley, to whom we should all pay tribute, had made significant representations. The Northern Ireland Affairs Committee had been involved, as had the Institute of Chartered Accountants in Ireland, led by Eamonn Donaghy.

Varney came up with a lukewarm response. He said, quite rightly, that corporation tax was not the only answer and that a skilled work force was also needed, as had been successful in the Republic. However, he missed the big picture that, time and again, major investment projects went to the Republic because of a lower rate of tax. The late Brian Lenihan, who was the Irish Finance Minister when I was shadow Secretary of State, said that the corporation tax rate was the “cornerstone” of the Republic of Ireland’s “industrial policy”. It therefore seemed bizarre that Varney looked not at the real advantages, but at the disadvantages.

I remember the crushing disappointment when the then Chancellor, the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown), knocked the proposal on the head. There was a conference at Stormont and then a bigger conference at Hillsborough. I remember Sir Tony O’Reilly waving his arms around and making a great burlesque speech about the advantages of lower corporation tax. Sir George Quigley was also there. Then the Chancellor knocked it on the head and came up with a number of palliative measures that were typical of him. I remember writing letters in subsequent weeks to try to get to the detail. He had stood up in public and said, “These measures will bring the same advantages as lower corporation tax,” but frankly, there were a lot of fiddly little deals that did not deliver. That was a black moment.

I remember sitting next to the late Sir George Quigley, by complete chance, and going over the matter. He was bitterly disappointed because the whole business community had been looking to the proposal. One reason why it had been knocked on the head was that the British state could not afford the forgone tax. At about the same time, we had the Azores judgment by the European Commission, which we could pray in aid. It said clearly—Varney took this conclusion—that corporation tax could be devolved. Lisbon had tried to reduce a tax arbitrarily in the Azores region and was told firmly that there were three conditions.

First, there had to be a democratically elected assembly with a clear jurisdiction over a defined geographical area. Northern Ireland qualified. Secondly, that assembly had to have complete decision-making powers, which could not be interfered with by central Government. Thirdly—it is a pity that the Scottish nationalists are not here to listen—there could be no compensation from central Government for the forgone tax, which had to be borne by the local assembly. For the record, Scotland pays about £2.5 billion in corporation tax, so if it dropped to the rates we are talking about it would have to find £1 billion. Perhaps the Scottish nationalists might consider that when they come back into the Chamber. Sadly, the figure is much lower for Northern Ireland because there are no FTSE 100 companies. Corporation tax is currently about £500 million.

We therefore came up with the idea, in accordance with the Azores judgment, of knocking the forgone tax off the block grant. Government spending in Northern Ireland is £23 billion—£13 billion raised locally and £10 billion from the block grant. If tax went down to Republic of Ireland levels, there would be a reduction of £200 million in the block grant. That is a very small investment to bring to Northern Ireland the sort of businesses that would come in.

That idea began to take shape. Following the dark days after it had been knocked on the head at the conference that I mentioned, two things happened. First, we set up a report by the TaxPayers Alliance, the investigation group, on corporation tax. Secondly, and I think more importantly, Sir George Quigley got together with others and pulled together a key group of people, to whom I pay tribute. There was Sir George, who at the time was chairman of Bombardier; Victor Hewitt, the head of the Economic Research Institute of Northern Ireland; Eamonn Donaghy, the head of tax at KPMG, who has been tireless throughout; Graham Gudgin and Neil Gibson, economists at Oxford Economics; Professor Mike Smyth, professor of economics at the university of Ulster; and finally Mike Hall, a tax partner at Ernst and Young. They formed the key Northern Ireland Economic Reform Group, and their report, which came out in February 2010, said categorically that if corporation tax in Northern Ireland changed from 28% to 12.5%, it would result in the creation of 80,000 new jobs over a 20-year period.

The previous year, there had been the terrible murder of Police Constable Stephen Carroll in Craigavon, which was an appalling event. We all know how divided the communities in Craigavon, Portadown and Lurgan have been. I remember clearly during one of my visits going to the great pharmaceutical company Almac, which employs about 2,000 people. The chief executive said, “If you can get this through and get corporation tax rates down to the level of the Republic, we’ll double the business and we’ll double the work force.” My direct response to the shadow Secretary of State and doubters in the Labour party—I am delighted that they have come on board today and said that they will support the Bill—is that they should think of the benefits to Northern Ireland, not just economically and socially but politically, of a further 2,000 people being on pharmaceutical-level wages and injecting money into their communities. The Labour party should get its head around that long-term benefit.

On that basis, and with strong support from the Prime Minister, I committed in March 2010, on behalf of the Conservative party, to devolve corporation tax. That became a manifesto pledge in our Conservative and Unionist manifesto. Although we did not quite win the election, that pledge was continued as part of the coalition programme. At the same time, there was real enthusiasm for the idea across the business community. In October of that year, Grow NI was formed, involving pretty well every business organisation—the CBI, the Institute of Directors, the Federation of Small Businesses, the chambers of commerce, the Northern Ireland Independent Retail Trade Association, Manufacturing Northern Ireland and about a dozen others. They lobbied people not just in Westminster but in Stormont, and importantly they got support from all five political parties in Northern Ireland. I pay tribute today to all those parties—I had endless discussions with them at that time, and they all came together. I think it was a unique event—I am not sure whether we had ever got all parties allied on a single policy before.

Key to that process was the Financial Secretary to the Treasury, who was then the Exchequer Secretary—I am pleased that he is in his place. He completely got on board with the long-term benefits not just for the Northern Ireland economy but for the UK economy. To pick up on the comments of my hon. Friend the Member for Amber Valley (Nigel Mills), if we can make Northern Ireland more economically viable, it will be of real benefit to our constituents in Shropshire and the east midlands. It will reduce the need for the block grant if the economy prospers and grows well. There is a massive UK-wide reason for supporting the devolution of corporation tax, and the then Exchequer Secretary really got that point.

My hon. Friend the then Exchequer Secretary and I went to Kelvatek, a splendid example of a Northern Ireland business, led by John Cunningham. All five political parties came along and we launched the consultation. It is important that the shadow Secretary of State understands that there was a lengthy consultation throughout 2011, and there were further launches for Grow NI, including the big launch at the Lyric theatre. There were about 750 responses to the consultation, and they were overwhelmingly in favour of the idea of devolving corporation tax.

That autumn, with the help of the then Exchequer Secretary, we began joint meetings involving the Northern Ireland Office, the Treasury and the Northern Ireland Executive. The first was in December 2011, and the last one in which I was involved was in June 2012. After that, I was delighted that my successor took up the baton. She has manoeuvred around Whitehall with great skill, because there was considerable hostility to the idea and real nervousness about it among significant elements of the establishment here. It is a tribute to her skills that we have the Bill today.

The Bill is quite something. This is a day that we will remember—as I said, in the long term, the benefits will be equivalent to what the last Government did in the Belfast agreement. It could help to create long-term prosperity and bring to disadvantaged communities the wealth that the shadow Secretary of State mentioned. The key thing is to get the message across. I would like members of the local parties to go back to Northern Ireland tonight with a clear message. The start date in the Bill is April 2017, and it is incredibly important that not only local businesses but UK and foreign businesses have a clear signal of what will happen on that date.

--- Later in debate ---

[David Simpson (Upper Bann) (DUP)]

I thank the Government for keeping their part of the bargain in trying to push the Bill through the House before Dissolution.

I again pay tribute to the right hon. Member for North Shropshire (Mr Paterson), as I did in an intervention. He was very modest in what he said about his role. I understand that it was a team effort within the Government, but I must say that he was outstanding in the number of meetings he held with business organisations in my constituency, such as the manufacturing focus group and the chamber of commerce. He put across the case for devolving corporation tax very well, and all credit to him for his enthusiasm. He was also very enthusiastic about enterprise zones, as has been mentioned, and other parts of the different regions of the United Kingdom are starting to raise that whole issue.

The Chairman of the Northern Ireland Affairs Committee pointed out that we debated this matter and produced a report some time ago, and I remember what one of the economists said. People say that if someone brings 20 economists into one room and tries to get them to agree, they will find it very hard. My hon. Friend the Member for East Antrim (Sammy Wilson), who is an economist, is not in the Chamber, or I would certainly get a very smart response from him.

I asked one economist at what point between one and 10—given a clean sheet—he would put corporation tax, and he was quick to say that he would put it somewhere in the middle. We all agree that the measure is a great move for the future of Northern Ireland, but it is not a panacea or silver bullet, and we need to bring together a lot of things to make it work. The economist reckoned that other factors need to be looked at, including fast-track planning, which has been discussed, the whole planning structure, research and development, and education, which was also raised earlier. It has just been announced that we will get two new regional colleges—one in the town of Banbridge, and one in the Craigavon area—which will benefit my whole constituency. The colleges recently made a presentation about the number of courses and higher level apprenticeships that will be provided. As the hon. Member for Belfast East (Naomi Long) said, skills are vital for any organisation that comes to Northern Ireland, so there needs to be a skills base. A lot of elements therefore need to be brought together for the whole package to work.

Everyone in this debate has broadly welcomed the Bill, but it has been sensible of many of those who have spoken to put in caveats and not to make promises that we might not be able to keep in five or 10 years. The point was made that when companies decide to invest in other regions or sit down to write business plans, they do not plan for just six or 12 months, but for three, four or five years. We do not want to make rash promises, only for companies that plan to come into Northern Ireland to find, all of a sudden, that it does not work. Today we have the coalition Government, but things could change on 7 May. We might have another Government. Will they have the same principles and ideologies as this Government? It is therefore important that we do not make rash promises.

My constituency of Upper Bann is the second largest manufacturing base in the Province outside Belfast, with companies such as Moy Park, Almac and Thompson Aero Seating. It has a lot of good companies, such as bakeries and agri-food businesses. Many of those companies would benefit from the lowering of corporation tax. I declare an interest in the agri-food sector and refer to the Register of Members’ Financial Interests, because my family business would also benefit. The benefit will be felt across the constituency. At the worst economic times, unemployment in Upper Bann rose to 8.5% or 8.6%. As of last week, it was down to 5.2%. Even at the best of times, it never fell below 4% or 4.5%, so we are heading back to where we were in the good old days.

We need to encourage our young people to stay in the United Kingdom. The hon. Member for Foyle (Mark Durkan) made the point that every year we lose a campus to other countries. I still help young people on a regular basis to fill in forms and visas to go to Australia, New Zealand or China. We need to encourage young people to stay and protection needs to be put in place. We have heard about issues such as brass-plating. That needs to be definitive and there are a lot of issues that need to be teased out. That can be done as we go through the Bill over the next few weeks.

I broadly welcome the Bill. It will bring great benefits to Northern Ireland. It is important that every part of the United Kingdom and every country looks to its advantages over other countries. We have to look for the competitive edge. If this brings the competitive edge for Northern Ireland, that is good news, because we have sat alongside the Republic of Ireland, with its 12.5% rate, for many years. As was said earlier, throughout all the difficult economic times, with the Celtic tiger losing its buzz and all the rest of it, it still held on to the corporation tax rate. Even when the European Union threatened to take it away, the Republic of Ireland stood its ground and won the day. We need to continue with this proposal. I think there are good days ahead for Northern Ireland.

[Ian Paisley]

We were promised an economic bonanza after 1998. Whatever people’s interpretation of the Belfast agreement, there was no economic follow-through. It was like the ghost of Banquo—it was there, but it did not turn up. The ghost of economic benefit did not end up being delivered. This is the opportunity to deliver the economic benefit for Northern Ireland that has been absent for the past 15 years.

[David Simpson]

My hon. Friend is correct. This is an opportunity for Northern Ireland to deliver that economic benefit. We need to encourage not only businesses throughout the Province, but the next generation. I do not know about other MPs, but when I go to universities and schools in my area, people say, “What’s the point of staying in Northern Ireland? There’s nothing here for us. There’s no jobs; there’s no nothing.” We have to give them a reason to stay.

It is the role of Governments to create the environment and circumstances in which business can thrive and move forward. My hon. Friend is right that there is an opportunity to do that, and we need to grasp it, but we must do so in a balanced and measured way. We must not make false promises that may come back to bite us in the coming years.

On-the-Runs Scheme

David Simpson Excerpts

Tuesday 27th January 2015 Commons Chamber

[Mrs Villiers]

No, I am afraid that I cannot give that confirmation. The Hallett report was clear in its conclusions about the management of the scheme: it was not properly managed and the risk was not properly managed. Anyone reading the Hallett report must expect that further errors will come to light. As I told the House earlier, Lady Justice Hallett highlighted 36 further cases as ones where the risk of error is higher than in others. That is one reason why nobody should be relying on these letters; because of the errors in the way the scheme was managed, it is likely that other errors will come to light.

[David Simpson (Upper Bann) (DUP)]

The Secretary of State will know that I have raised the position of the victims on a number of occasions, and they are at the core of the whole issue. Many victims will never see justice because of these OTR letters. My hon. Friend the Member for North Antrim (Ian Paisley) made a point about printing the names. Is one reason why the Government will not print the names of those with OTR letters and the royal pardons that they were received by some people who have been elected to this House and are currently elected to the Assembly?

[Mrs Villiers]

Let me emphasise that the issue of an OTR letter does not necessarily lead to the result that it did in the John Downey case. The judgment is clear: the reason why the trial collapsed was that the letter was incorrect. Mr Downey was wanted, but he was sent a letter indicating that he was not. The issue of an OTR letter does not give immunity from prosecution; it never did and it will not do so in the future. On the disclosure of names, I have said to the Northern Ireland Affairs Committee on many occasions that, by disclosing names, there is a risk that I would jeopardise future prosecutions, make them more difficult and increase the risk of an abuse of process. That is why I will not disclose names in relation to this scheme or be drawn on categories of individuals who might have been part of it.

Stormont House Agreement

David Simpson Excerpts

Wednesday 7th January 2015 Commons Chamber

[Mrs Villiers]

Absolutely not. There are no amnesties in the agreement. This Government do not support such things, and they would not be justified in this instance.

[David Simpson (Upper Bann) (DUP)]

The Secretary of State mentioned parades a number of times, and those will be a problem in the future. Does she therefore understand the frustration of my constituents at the Drumcree protest, which has been ongoing for 16 years? The panel gave us the possibility of finding a model to deal with that parade, but the rug has again been pulled from under us. Does she understand the complete frustration?

[Mrs Villiers]

I do, and the hon. Gentleman and I have discussed the Drumcree situation on many occasions. It is important in north Belfast to focus urgently on finding an inclusive process to bring the two sides together. That is why I will be meeting many of the different groups involved in the next few days and discussing these matters with the right hon. Member for Belfast North (Mr Dodds) and the First Minister tomorrow.

Oral Answers to Questions

David Simpson Excerpts

Wednesday 29th October 2014 Commons Chamber

[Mr Speaker]

May I just gently point out to the House that we have a lot of questions to get through and we need to speed up?

[David Simpson (Upper Bann) (DUP)]

2. What the geographical remit will be of the recently announced panel to discuss parading disputes in Northern Ireland.

[The Secretary of State for Northern Ireland (Mrs Theresa Villiers)]

The proposal I announced on 7 October relates to disputed parades in the Twaddell and Ardoyne area of north Belfast, responding to the call by the Parades Commission for a wider, more structured process to address the issues around parades in the area.

[David Simpson]

I thank the Secretary of State for that clarification, but does she agree that resolution also needs to be found to the dispute in Drumcree in my constituency, which has been ongoing for the past 16 years?