Northern Ireland Economy and Innovation: Government Support

Debate between Emma Little Pengelly and Sammy Wilson

Tuesday 29th October 2019 Westminster Hall

[Emma Little Pengelly]

I absolutely agree. Later in my speech, I will come to the various aspects of our economy in Northern Ireland, and the particular issues, challenges and opportunities they face.

Northern Ireland is the smallest region of the United Kingdom, making up just 3% of the UK, but we still make a mighty contribution, and have a mighty story to tell. All of us here from Northern Ireland want it to play an even greater part in what is often referred to here as global Britain, but we would like to see a truly global United Kingdom agenda, in which every part of this United Kingdom is fully integrated and promoted and each region pulls its weight.

[Sammy Wilson (East Antrim) (DUP)]

Does my hon. Friend accept that one of the downsides of the current withdrawal agreement is that although we are a major exporting region of the UK, we might find ourselves prevented from taking part in trade deals that the Government might strike with other parts of the world because of the way in which we are tied into the EU?

[Emma Little Pengelly]

As a member of the International Trade Committee, I am very aware of the opportunities, challenges and barriers that full participation in international trade entails. It will come as no surprise to hon. Members to learn that I will mention the ‘B’ word—Brexit—later in my speech, and specifically the dreadful proposal for the Northern Ireland economy. My right hon. Friend’s points are valid; that constitutes a real and present risk to our economy.

Northern Ireland, just 3% of the United Kingdom, relies hugely on trade with the rest of the United Kingdom. Great Britain is the biggest market by far for Northern Ireland—bigger than the Republic of Ireland, the European Union and the rest of the world combined. Over the past 10 to 20 years, and certainly since the restoration of the Assembly in 2007, huge effort has been put into increasing our exports, and the market for our exports in other countries in the European Union and across the world, but Great Britain remains our biggest market, which we rely on hugely. Any barriers to trade with it would have significant impacts. I will touch on that later.

A factor that is discussed less often in this debate is consumer choice. Consumers in Northern Ireland rely hugely on the Great British market for goods, from the supermarket goods that we see in common high-street shops, to bespoke and craft products in smaller, family-owned shops. Many of those goods come from Great Britain, and there are real concerns about how people will access them. Many people today access goods through online marketplaces, such as Amazon, eBay and Etsy; that, too, gives rise to concerns about consumer choice and access. Many of the companies in those marketplaces are based in Great Britain, and many are very small producers; barriers might prevent them from posting their products to shops and consumers in Northern Ireland.

As a small region of the United Kingdom, we rely heavily on its economy, but Northern Ireland has a really strong case to make. As we have gone round the world trying to attract new businesses and, particularly, foreign direct investment to Northern Ireland, we have been able to showcase the fact that we have the highest skills in the United Kingdom. We have three excellent universities: Ulster University, Queen’s University in the heart of my Belfast South constituency, and the Open University, which does a huge amount of work. We also have high skills and a good education system. That is not to say that we do not have challenges—I have spoken about the challenges of trying to support every child to succeed in getting skills—but we are one of the highest-skilled regions in the United Kingdom.

We have relatively low staff turnover, which is very attractive to businesses moving to Northern Ireland, because they know that if they take those staff on, train them and invest in them, they will show loyalty. Indeed, I think we have the lowest staff turnover in the United Kingdom, which is comparatively unique. A company looking to come to the United Kingdom will also find relatively low set-up costs in Northern Ireland, as well as people who can support it through the process, and comparatively low recurring running costs.

We have a strong case to make, but of course there have been challenges. Over the past 15 years, the Republic of Ireland has cut its corporation tax time and again to make it even more competitive, knowing that our corporation tax rate is tied to that of the rest of the United Kingdom, and is therefore significantly higher. The Republic of Ireland has created tax incentive packages that I would describe as innovative, particularly to attract big US companies such as Facebook and Apple. We want to be able to attract those companies, too. Since 2007, working closely with Invest NI, Northern Ireland has had a very strong record; in fact, for some years, it attracted more FDI than any region of the United Kingdom outside London and south-east England. For a small region with the challenges that we had, that is a really strong story to tell. It is a story that we should be proud of—but we want more. We want to do better, and we need to do better, because we still have challenges and we still do not have the types of jobs that we want for our young people: high-value, stable jobs that young people with the right skills can move into, creating happy, healthy lives for themselves and their families with the prosperity that we want to bring.

[Sammy Wilson]

My hon. Friend is right that it is not just jobs that we want, but good-quality jobs. Does she agree that when the Assembly was working properly, one of its successes was in attracting such jobs? Indeed, about 50% of the jobs attracted through FDI paid wages above the average wage in Northern Ireland.

[Emma Little Pengelly]

I absolutely agree. Statistics released in recent days indicate that although we have had growth in the average wage, it has now slowed down, and there has been a slowdown at the high-value end of jobs. In Northern Ireland we have comparatively low unemployment, but those statistics do not necessarily show the whole story. My constituency of Belfast South has one of the lowest unemployment rates not just in Northern Ireland, but across the United Kingdom—but too many of those jobs are at the lower end. We need high-value jobs that pay people better, because there is significant in-work poverty. The best way to get out of poverty is with a well-paid job. People need jobs with stability to help them to support themselves and their family.

We also have persistently high levels of economic inactivity. Although people point to that inactivity, the reality is that right now we cannot just match it with jobs growth. We need good programmes to support people, regardless of why they are economically inactive. In Northern Ireland, we have a higher than average percentage of students, who are currently defined as economically inactive, but those are not necessarily the people we are worried about; we are worried about those who have been economically inactive for some considerable time. Even more worrying are people in families who suffer from transgenerational unemployment. They need the right support and skills programmes, at the right level.

This is not just about getting people entry-level jobs; we want them to skill up and make progress. I have heard House of Commons statistics about how many people go into an entry-level job and stay at that level for their entire career. Social mobility and support for people throughout their career, so that they can increase their wages and their family income, are essential to the shared prosperity to which we are committed.

Let me touch on a few particular aspects. I have already mentioned foreign direct investment. Northern Ireland’s economy is still very much one of small to medium-sized, largely family-owned businesses, as my hon. Friend the Member for Upper Bann (David Simpson) said. The Democratic Unionist party absolutely wants to support those businesses, but many of them are understandably reluctant to take risks in order to grow—people are content with the strong business that they have built not just for themselves, but for their children and family. We want to encourage those businesses because we need them to grow, but they should be able to take those risks in an environment in which they feel confident and positive. I will say a little more about family and small businesses in a moment.

I know that the Minister will have had meetings with Invest NI and received briefings. I pay tribute to the incredible work of Alastair Hamilton, who I worked with many years ago. He has done a fantastic job in very difficult circumstances, particularly in the past few years, to keep increasing foreign direct investment and high-value jobs. Since the collapse of the Northern Ireland Assembly more than 1,000 days ago, one of the small glimmers of light has been the fact that Invest NI has been able to continue to make jobs announcements, including in my constituency, and to create the opportunities that we really need. Under the framework set by the Northern Ireland Assembly, Alastair Hamilton and his Invest NI colleagues were able to continue going into the global marketplace, winning contracts and attracting companies to Northern Ireland. We want to build on his incredible work; as he moves on from the job, we are all thankful for the amazingly competent work that he has put in.

We are keen to continue to play a full role in attracting foreign direct investment. We can do so much through our regional organisations, such as Invest NI, but as the Democratic Unionist party has pointed out to the Government on a number of occasions, our sell in Northern Ireland must be fully integrated into what the United Kingdom does on a global scale. We want to be fully included in what is being offered, including trade fairs, engagement with countries, and trade missions. Some progress has been made, but we want more. I am sure that Members of Parliament from Scotland, Wales, the north of England and other regions also feel that, historically, their region has not been fully included and integrated in the sell of the UK Government. I have raised that issue on many occasions with the Secretary of State for International Trade, and with the Department for Business, Energy and Industrial Strategy. Progress has been made, but we want to build on it, and we want more of our companies to take part.

We know that innovation is the way forward. Northern Ireland will never be a low-cost manufacturer, but we have been, can be and will be high-quality, innovative and creative in our manufacture, industry and services, and in the skills that we bring to them. Investment in innovation is therefore very welcome. Some investment in research and development has been affected by constraints around state aid and other aspects of the European Union. As we move forward from that, we want a continuation of the investment in innovation, research and skills that we have had before.

The Government have spoken on this issue on a number of occasions, and I certainly welcome the very warm words that they have used. However, we would like concrete proposals on how Northern Ireland will get its fair share from any central programme to support innovation, research and development, and on how Northern Ireland can be more successful in bidding for central funds, to try to get the help and support that our businesses need to grow.

I have mentioned a number of universities, but as the Member of Parliament for Belfast South, I will of course mention once again Queen’s University, which does fantastic work in innovation; in fact, it is leading the way in a number of areas.

I am very conscious that we need to identify the potential growth areas. In what areas can Northern Ireland show unique creativity and innovation? In terms of the UK as a whole, what can we do to be particularly attractive to foreign direct investment and growing businesses? We have done huge amounts in areas such as cyber-security and finance.

Early Parliamentary General Election

Debate between Emma Little Pengelly and Sammy Wilson

Monday 28th October 2019 Commons Chamber

[Sammy Wilson (East Antrim) (DUP)]

The Prime Minister has claimed that anyone who does not support his demand for an early election is, first, trying to stop Brexit and, secondly, running scared of the electorate. The Democratic Unionist party will not be supporting this motion tonight, but not because we are scared of the electorate. In fact, I can tell the House that the Unionist electorate in Northern Ireland are so angry at, so despairing of and so bewildered by the way in which the Prime Minister has broken his promises to the people of Northern Ireland that they would return 100 DUP MPs if they had the option.

We are not scared of a general election and we are not trying to stop Brexit. In fact, we have been pilloried in this House because we have been seen to be some of the most determined people to deliver Brexit. But the Brexit on offer is not a Brexit for the United Kingdom; it is a Brexit for part of the United Kingdom. It would leave Northern Ireland still within the single market and under the EU customs code. It would mean that any goods coming into Northern Ireland from GB would be subject to customs checks, customs declarations and tariffs. It would mean that we would have to sign export declarations when we sent goods to another part of our own country.

All these things would add costs and delays to the economy of Northern Ireland and would be a huge imposition on the thousands of small firms that currently trade freely with the rest of the United Kingdom. They would suddenly find themselves having to treat the country to which they belong as a third country when it comes to trade. Despite what the Prime Minister has said, the withdrawal agreement makes it quite clear that we could not take part in trade deals that our country does with other parts of the world if they went against the protocols in the agreement.

[Emma Little Pengelly (Belfast South) (DUP)]

The issue of additional bureaucracy for business between Northern Ireland and Great Britain, and Great Britain and Northern Ireland, is all the more stark when we look at the statistics, which show that Northern Ireland trades more with Great Britain than with the Republic of Ireland, the European Union and the rest of the world put together; putting up a barrier to our biggest market by far would be hugely significant for the economy of Northern Ireland. Does my right hon. Friend agree?

[Sammy Wilson]

My hon. Friend is right, but sometimes statistics can go over people’s heads. Let us also bear in mind that the agreement goes totally against the promises made by both the former Prime Minister and the current Prime Minister—that there would no impediments to trade between our part of the United Kingdom and GB, and that there would be no danger of the Union being imperilled.

European Union (Withdrawal) Acts

Debate between Emma Little Pengelly and Sammy Wilson

Saturday 19th October 2019 Commons Chamber

[Sammy Wilson]

First of all, the hard border is there. I have made the argument. I defy anybody to tell me that if we have to fill in a customs declaration, we have to search lorries and vans coming into Northern Ireland at the ports and we have to pay taxes on goods that come from Great Britain, that is not already a hard border.

Let me return to the issue of consent, because it is important. The Minister dismisses Unionist fears by saying, “You can vote your way out of it.” The mechanism for voting our way out of it is led by an international treaty. Why is it not going to be adhered to? Because the Government, the EU and the Irish Government know that that would be an effective way of Northern Ireland doing the very thing that the Minister said we would be able to do. Remove that and you remove the ability of Northern Ireland to take itself out of this arrangement. And of course we only get the chance after four years! We are put into it without any consent at all.

[Emma Little Pengelly (Belfast South) (DUP)]

Does my right hon. Friend agree that in Northern Ireland, at the moment and for the past 1,000 days when we have had no Government, there has been a majority—not just a simple majority, but a significant majority—of parties and people who want to get back to work? We are being held and blackmailed by a minority party, Sinn Féin, yet this Government have defended that minority veto for over 1,000 days, meaning that there is no Government in Northern Ireland.

[Sammy Wilson]

That is the irony. We have to avoid having an Assembly because the voting mechanism of the Belfast agreement must be adhered to, but when it comes to getting out of this arrangement, which has severe consequences for Northern Ireland, the Belfast agreement mechanism does not have to be adhered to. Either we avoid a hard border or we have a hard border. Either we adhere to the Belfast agreement or we do not adhere to the Belfast agreement. The agreement the Government have signed turns all those things on their head, and that is why we will oppose it.

I am sure hon. Members across the House who have defended their constituency interests, whether the fishing industry in Scotland and Cornwall or the rights of workers in their own constituencies, will understand why we will not give in to this agreement. We believe it will cause damage to our part of the United Kingdom and lead the focus of attention away from London towards Dublin. Let us not forget that we will be tied in to an arrangement where the laws for Northern Ireland will be made in Brussels. The British Government will have no input. The Stormont Government will have no input. So where will the focus of attention be for industry, lobby groups and politicians in Northern Ireland? Dublin. We will move towards a united Ireland.

I was asked what the DUP would do in relation to the Letwin amendment. All I can say is this: we would be failing in our duty if we do not use every strategy available to try to get guarantees, changes and alterations that will safeguard the interests of the United Kingdom, the interests of our constituents and the interests that we represent.

Northern Ireland (Executive Formation etc) Act 2019 Section 6

Debate between Emma Little Pengelly and Sammy Wilson

Monday 30th September 2019 Commons Chamber

[Emma Little Pengelly]

Will the Minister give way?

[Sammy Wilson]

Will the Minister give way?

Northern Ireland (Executive Formation etc) Act 2019 Section 7

Debate between Emma Little Pengelly and Sammy Wilson

Monday 30th September 2019 Commons Chamber

[Emma Little Pengelly]

Will my right hon. Friend confirm that in all the discussions at the time of the inquiry—when we looked at the inquiry in the Republic of Ireland and inquiries elsewhere, where the institutions made a significant contribution—it was the clear understanding of all parties that the institutions would be requested and required to give their contribution as well?

[Sammy Wilson]

My hon. Friend is quite right. Indeed, that was always the understanding. I note that the report says that research is being undertaken into how the issue has been handled elsewhere. I would like the Secretary of State not just to research, but to tell us what approaches have been made to the bodies at which the finger of blame was pointed for this abuse. Is it simply that there will be an academic study of what is to be done, or have approaches actually been made? If they have, what has the response been?

The report says that there will be a mediation mechanism to decide how much should be paid by the various institutions and that the parties will have to submit themselves to a final arbitration. All that is fine—of course we have to have a mechanism—but there is no indication that civil servants in Northern Ireland are making approaches to the institutions, knowing what the view of the Executive was on this matter; and it is important that that is done.

I have one final point, which has been made time and again today. I do not believe that the Northern Ireland Assembly will be up and running on 21 October because Sinn Féin, which wanted some of the changes that have been put through this House and that have a date attached to them, will not want the institutions back up and running for all that to be taken back into the Assembly and for the debate to be reopened. That was a fatal flaw in the Labour party’s decision to interfere with a devolved issue and to dabble in the future of the Northern Ireland Assembly. Labour Members were warned about this, but they ignored that warning, and now they lament that we cannot get this issue dealt with as far as the victims are concerned.

The Assembly will not be up and running because, for those who wanted the changes to abortion and gay marriage legislation, there is every incentive not to have it up and running. They are showing no indication that they will even engage in talks. It is important that the Secretary of State recognises that and ignores any evidence he might be getting from the Northern Ireland Office about what might annoy Sinn Féin. He should be bringing to this House legislation that compensates and gives some redress—as much as money ever can give redress—to that individual who met me in a street in Belfast and told me how, as a boy, he was abandoned, he was not listened to and he was hurt, and how he still carries that hurt today.

Northern Ireland (Executive Formation) Bill

Debate between Emma Little Pengelly and Sammy Wilson

3rd reading: House of Commons & Committee: 1st sitting: House of Commons & Report stage: House of Commons
Tuesday 9th July 2019 Commons Chamber

[Sammy Wilson]

The hon. Lady says from a sedentary position, “It kind of does.” If it kind of does, why are those who are saying that we should interfere on the issue of same-sex marriage and abortion not being consistent and arguing that we should be using the powers of this House and bringing back to this House all the other issues, many of which are also human rights issues, such as the human rights of people who need special education to get special education, and the human rights of people who need life-saving operations to have life-saving operations? I do not hear any siren calls from the people who are saying, “Yes, it kind of does matter that there is no devolution in Northern Ireland.” If it does, let us bring other matters back to this House.

[Emma Little Pengelly]

Looking around the Chamber, it strikes me that there are a number of people present who were not here for yesterday’s debate, when we talked about a range of these issues. Whenever we talk about human rights, it is important to say that there are people sitting on waiting lists, when one of the fundamental human rights is the right to life. People on waiting lists are dying while waiting for cancer treatment and other treatments because there is no Assembly in Northern Ireland and there is a refusal of this place to intervene and try to do something about that. We do care about the rights of people right across the board, but that means that we must have the Northern Ireland Assembly back up and running to deal with these issues.

Northern Ireland (Executive Formation) Bill

Debate between Emma Little Pengelly and Sammy Wilson

2nd reading: House of Commons
Monday 8th July 2019 Commons Chamber

[Emma Little Pengelly (Belfast South) (DUP)]

It is a pleasure to follow the hon. Member for St Helens North (Conor McGinn). We have possibly set a precedent in the House, in that he and I are both from south Armagh; I moved to Belfast South, the constituency I represent, when I was 18. I do not agree with the hon. Gentleman on many things, but we do agree on some. I have been contacted by many scores of people from across my constituency who feel as strongly as he does on these matters.

Like the hon. Member for North Down (Lady Hermon), I have been contacted by hundreds of people, by email and letter, who have said very clearly that they want these matters to be dealt with in the devolved Assembly. I was elected to this House just two years ago, and it is a matter of considerable sorrow to me that throughout those two years, we have not had a Northern Ireland Assembly. Like some other hon. Members from across the House who have spoken, I am a strong devolutionist; I believe firmly that the laws and policies that impact most on people’s lives should be made as close as possible to the people, and that means that decisions on the many issues that are devolved should be made by the Northern Ireland Assembly.

We have been two and a half years with no Government in Northern Ireland. I have stood up many times in this House and indicated my sorrow at that. I welcome such measures as the Bill as necessities—they have to be brought forward—but I do so in sorrow, because we do not want to be here. It is not desirable to have this type of legislation passed by this House, or, as we have made clear, to have direct rule. It is not sustainable, fair or right that decisions that impact fundamentally on people’s everyday lives in Northern Ireland continue to be made not in Northern Ireland.

The Secretary of State outlined the process that is under way. For some listening to this debate, it may have sounded a little as though the Bill has guillotined the process—as though this was the end of the process, and as though there is now a further extension until October. I do not believe that to be the case. The DUP has entered into the talks process in good faith, and we will continue to work hard, because we want to get Stormont back up and working. That is the objective with which we entered into these talks, and that is our aim.

I say to everybody across the House that we are very clear that whatever agreement comes out of the process must be fair and sensible. When we look back over the decades in Northern Ireland, we see that the only type of agreement that has ever worked is one that has commanded broad consensus and agreement across the communities. That is what we are trying to achieve. One thing we will not accept is a bad deal for the people of Northern Ireland.

It is not the case—I challenge the shadow Secretary of State on this—that everybody is to blame. Almost all parties in Northern Ireland are willing to go back to work, to form an Executive, to govern and to deliver for the people of Northern Ireland. One thing is stopping that: Sinn Féin collapsed the Assembly and refuses to go back until it gets a stand-alone Irish language Act. That is the barrier, and one party put it up; we need to be very clear about that. That is not sustainable, and we are working incredibly hard in the talks process to address the issues of sustainability. It is completely unfair for any single party to be able to throw a tantrum over a particular issue and say, “I’m not going back into the Government. Nobody in Northern Ireland will have things decided on health, education, childcare, infrastructure or the economy until we get exactly what we want.” That cannot be allowed to continue. Sinn Féin needs to stop the silliness and get back into government.

[Sammy Wilson]

If, for the convenience of the people of Northern Ireland, we were to give in, does my hon. Friend accept that in future months, when another impasse was reached, or when Sinn Féin wanted something else, it could use exactly the same tactic and bring the Assembly down? The Assembly would continually be held to ransom by people who have no conscience when it comes to hurting the population.

[Emma Little Pengelly]

I thank my right hon. Friend for that intervention. I absolutely agree. I have worked very closely with government over the past 10 years and more of devolution—since 2007—and we have had to get through some very difficult and challenging issues, including bad behaviour by a number of parties, one of which was Sinn Féin, and what it was implicated in. We tried to keep the show on the road and the institutions going. It was not the DUP that collapsed those institutions. We were, and still are, prepared to sit down and talk.

My right hon. Friend the Member for Belfast North (Nigel Dodds) has outlined our reasonable proposition, which is, “Get back into government now and we will set the parameters to ensure that you have confidence that we will genuinely and in good faith engage with the issues that you want to talk about. If you feel that we are not doing that, we are prepared to put in place, at this stage, a mechanism that would allow you to collapse the Assembly.” There are no risks for them in getting back into the Assembly under that arrangement. My party leader had barely sat down after making his speech before Sinn Féin issued a press release rejecting that completely. If it wants change, there is a way to get that that actually delivers for the people of Northern Ireland. People are angry and frustrated, because they want basic services to be delivered by the people they elected to deliver them.

During these types of debates, a small number of issues are repeatedly discussed that I know are incredibly important to people. Day in, day out, a number of issues are continually raised in my constituency surgery, and I know it is the same for my right hon. and hon. Friends. Before I touch on them, I want to make it absolutely clear that we need to be realistic. I hear people across Northern Ireland saying all the time, “If only there was an Assembly, I wouldn’t be sitting on this waiting list,” and “If only there was an Assembly, I would have this or that, and the Government would be doing this or that.” I am not naive. I do not believe that all those issues will suddenly disappear if the Northern Ireland Assembly is restored in the morning; of course Governments will still have constraints.

We need to be very careful about the expectation we give people. However, if the Assembly is restored, people will be there to make the decisions; the people of Northern Ireland can approach their elected representatives and make their case; policies can be scrutinised by the Northern Ireland Assembly and its Committees; and we can develop policy. Importantly, this Bill does not provide the capability to make a range of required legislative proposals; it does not allow civil servants to do that.

Before I go into a little detail about some of those policy areas, I want to pay tribute to the many civil servants operating under incredibly difficult circumstances. I say that with a little bit of a smile because my husband is a senior civil servant in one of the most challenging departments, the Department of Health. It is fair to say that I would not like to be in that situation. It is a very difficult set of circumstances. The Department of Health is in a slightly better situation—ironically, it may seem—because the Northern Ireland Assembly agreed the Bengoa recommendations and a transformation plan prior to the collapse of the Assembly, so my husband has been able to make decisions under the terms of that policy. He has been able to carry out consultations, some of which are controversial, and the findings will have to be considered. However, there are many things that he cannot do, and it is the same right across our civil service. I pay tribute to the incredible work that civil servants have done in very difficult circumstances that they should never have found themselves in.

I want to touch briefly on education. Recently, I started special autism clinics and surgeries right across my constituency, because so many people who come through my door face challenges on special educational needs and autism in particular—everything from trying to get their child statemented, to being on the school waiting list for up to a year or two before they can get their child seen. Parents know the help that their child needs, but they cannot get it at the moment. We need a fundamental review of special educational needs and autism services across our education system. The system is not just creaking; it is breaking, and it is children who are suffering.

I challenge the hon. Member for St Helens North: what about the human rights of a child who is waiting for an autism assessment, but cannot get it for years because there is no Government to carry out the fundamental review? Those are rights, too.

--- Later in debate ---

[Emma Little Pengelly]

I thank the hon. Member for that contribution. I do not see what happens in Sinn Féin constituency offices, but I can only imagine that the issues of health, education, poverty and the need for basic public services are the same right across the community. It does not matter if you are Protestant, Catholic, nationalist, Unionist, new incomer or ethnic minority—the needs are the same. Everybody is suffering from Sinn Féin’s decision to continue to refuse to allow the Northern Ireland Assembly to be restored. I hope that they are hearing the message loud and clear: come to the table, come to a sensible and fair agreement, and get Stormont back up and working for the people of Northern Ireland.

There are a couple of other issues I want to touch on. I do not want to speak for too long, so I will go through them very quickly. There are some key pressure points. All political parties have heard representations in relation to the social security mitigation package. We put in place a number of mitigations in terms of welfare reform. The Northern Ireland Assembly agreed that the NIA budget would pay for that. If a decision is not made, upwards of 40,000 people will have bills coming through their doors or much-needed help withdrawn. The package requires legislation, and so, under the terms of the Bill, cannot be implemented by the permanent secretaries. If the legislation is not passed by September, 40,000-plus people will be considerably worse off. This is a real issue that will impact on real people in need.

I was very much involved in setting up the Historical Institutional Abuse inquiry. I sat on the project board, along with Sinn Féin, when we worked on the legislation. I sat on the project board with Sinn Féin whenever we looked at implementation. We looked at inquiries across the world and one of the things we decided to do was put a date in the legislation for the inquiry to report. We did that because we did not want the inquiry to roll forward for years and years. We built in flexibility so that the chair of the inquiry could come back and request more time, but we knew, right from the passing of the initial legislation, the date the inquiry was due to report. I sat on the project board with Sinn Féin while we liaised throughout the duration of that inquiry. I think it was about two weeks before the report was due—the chairman of the inquiry had made it clear to all members of the project board, including Sinn Féin, that the report was on time—when Sinn Féin chose to collapse the Assembly.

There were two big outstanding issues: the budget for Northern Ireland and the HIA report. Before Sinn Féin collapsed the Assembly, I made the case to Sinn Féin. I said to the then Finance Minister, “Look, there are these two issues. You can choose to collapse the Assembly, we can’t stop you from doing that, but what is the necessity about time? We can take these two weeks and pass a budget to support public services. We can wait for the HIA inquiry to report.” It decided not to.

We have now moved on. This is not about the politics; we want and need those victims to get support. This issue requires legislation and that is being held up because there is no Northern Ireland Assembly.

[Sammy Wilson]

My hon. Friend makes a very important point about Sinn Féin refusing to bring forward a budget before collapsing the Assembly. The reason for that was that it could not face up to the hard decisions required to bring forward a budget. Is that not another reason why Sinn Féin is resisting going into the Assembly at the moment? It does not want to bring forward a budget. It would much prefer somebody else to do the hard lifting, rather than take the hard decisions that politicians have to take.

[Emma Little Pengelly]

I believe that the last Sinn Féin Finance Minister—I think it was perhaps the first Sinn Féin Finance Minister of our devolved Government—has the rather dubious title of being the Finance Minister who did not bring forward a budget, which was his core duty. Yes, of course there are difficult decisions to be made in a budget. There are serious questions to ask as to why he did not hit the deadline and did not bring forward those proposals.

There are many other issues I could reference. We do not have the high street fund in Northern Ireland. That money comes into our budget as what is referred to as a non-ring-fenced or unhypothecated Barnett consequential. We cannot force permanent secretaries to dedicate the money for that cause or for other projects for our economy such as the Streets Ahead programme.

I want briefly to mention the victims’ pension issue, which is associated with legacy. Over the course of the past week, I met the Victims’ Commissioner and many victims who were horrendously injured during the troubles. Those victims are now getting older and have particular issues with their finances. They do not have work-related pensions, because they did not have access to the workplace. They need this help and support. Again, that requires legislation and it has not been brought forward. There are many, many victims across Northern Ireland who require additional support.

I want to pay tribute to Bea Wharton, who was buried today. She was the last remaining mother of the Kingsmills victims. She was an incredibly strong and passionate woman who fought right up until her last breath to try to get justice for her son and the other victims of that terrible, terrible sectarian atrocity. I want to pay tribute to her and her family at this very difficult time. She was in her early 90s when she passed away. She fought every day of her life for justice, but justice was denied. Victims and survivors need that support.

The DUP cares passionately about Northern Ireland and the future of Northern Ireland. We want Northern Ireland to thrive. We want our young people to have an incredible future, with good jobs and a strong economy where people are happy and healthy. The best way to do that is to get back to work. Sinn Féin can do that tomorrow morning. Drop the silliness, get back to work and let us talk about these issues, while we deliver basic public services for the people of Northern Ireland. That is what the people of Northern Ireland want. That is what the people of Northern Ireland deserve.

Finance Bill

Debate between Emma Little Pengelly and Sammy Wilson

Committee: 1st sitting: House of Commons
Wednesday 11th October 2017 Commons Chamber

[Sammy Wilson (East Antrim) (DUP)]

First, I welcome the proposal in the Finance Bill, which adds to the previous decision about devolving corporation tax to Northern Ireland and giving us autonomy to make decisions about what the appropriate level may be.

I am a bit bemused by new clause 2. The argument is that devolving corporation tax to Northern Ireland and our having a different rate will somehow or other open the door to abuse. That objection could of course have been made, and more appropriately made, when the decision was made to devolve the tax in the first place. If it is open to abuse, it will create the kind of problems described by the shadow Minister, but if that were the case, I cannot understand why these issues were not raised at the time we voted on the principle of devolution. I suspect this is more to do with the fact that the Labour party is opposed to any reduction in corporation tax.

Let me address a couple of the points that have been made about extending this to small and medium-sized enterprises. The Minister made it quite clear that the criteria are, first, that they have to have a physical presence in Northern Ireland; and, secondly, that they have to register profits commensurate with the activities they engage in in Northern Ireland. That of course will have to be shown—by accounts, by employment, by the physical infrastructure that such a business would have in Northern Ireland—so there are already safeguards anyway. It can be measured whether an SME is simply moving paper money to register profits in Northern Ireland, or whether it is creating genuine jobs.

The biggest safeguard will be the decisions made by the Executive in Northern Ireland—if, indeed, an Executive is ever up and running again in Northern Ireland. We hope there will be, but that is one of the problems at the moment. It is not in the interests of the Northern Ireland Government to allow the situation that has been described by the Labour spokesman, for the simple reason that the payment for the devolution of corporation tax comes from the block grant. If we allow companies simply to migrate their business to Northern Ireland, register their accounts in Northern Ireland and declare their profits in Northern Ireland, but they do not actually create any physical activity in Northern Ireland, we will have to pay the amount of tax lost from the block grant. There will be no better policeman or policewoman of this than the Northern Ireland Executive themselves.

The review asked for—if there is any point in a review after a year—is therefore superfluous. First, there is the evidence that the company has to produce, and then there will be the scrutiny of HMRC. When we negotiated the devolution of corporation tax, compliance costs were built in, because of the additional scrutiny. It will also be in the interests of the Northern Ireland Executive to ensure that the system is not abused. For all those reasons, I believe that the new clause is superfluous. It is not needed, and we will therefore vote against it.

[Emma Little Pengelly (Belfast South) (DUP)]

I want to raise one additional point. My hon. Friend the Member for East Antrim (Sammy Wilson) has set out very well a number of our concerns about the proposed new clause. We have looked at this issue in the Northern Ireland Assembly, and I had the privilege of being the Chairperson of the Finance Committee when we considered the detail of it. We listened to concerns from small business and to those outlined by the Opposition spokesperson, but the key objective is to attract new business and jobs to the UK. We do not necessarily want movement from the rest of the UK to Northern Ireland. This is about foreign direct investment, trying to create new jobs and contributing positively to the economy of Northern Ireland and of the UK.

In Northern Ireland, we have looked at this issue for many years. It has been scrutinised by committees. We have had a range of consultants and others look at the detail of the proposal because we want it to work. As my hon. Friend the Member for East Antrim said, we do not want it to be simply an exercise in brass-plating or anything like that. We want jobs, employment and further investment in Northern Ireland.

One of the big issues in terms of the movement and type of jobs we want is certainty. Certainty is essential if we are to get commitment from companies—hopefully, big companies—to move into the UK for the first time and to invest in plant and staff recruitment. The proposal in new clause 2 to have a review after 12 months will create uncertainty. What international business would look at the UK and invest in plant, employees and recruitment when one of the big incentives to moving—the lower corporation tax rate—could be removed following a review after just 12 months? It is essential that we remain positive about the measure and have certainty about it. I reiterate: we want new jobs for the UK, and we want them in Northern Ireland.

Question put and agreed to.

Clause 25 accordingly ordered to stand part of the Bill.

New Clause 2

Review of changes to chargeability of trading profits to corporation tax at Northern Ireland rate

‘(1) CTA 2010 is amended as follows.

(2) After section 357WH (Allocation of Northern Ireland profits etc of firm to company), insert—

“357WI  Review of changes to chargeability of trading profits to corporation tax at Northern Ireland rate

(1) As soon as practicable after the completion of the first financial year in respect of which the Northern Ireland rate is set by the Northern Ireland Assembly in accordance with the provisions of section 357IA, the Commissioners for Her Majesty’s Revenue and Customs shall complete a review of the effects of the changes to chargeability of trading profits to corporation tax at the Northern Ireland rate made in Schedule 7 to the Finance (No. 2) Act 2017.

(2) A review under this section shall consider in particular the effect of those changes on the extent to which companies are based in—

(a) Northern Ireland, and

(b) Great Britain.

(3) A review under this section shall also consider the effect of those changes on the extent to which the profits or losses of companies and firms are Northern Ireland profits or losses.

(4) A review under this section shall also consider the effect on employment in—

(a) Northern Ireland, and

(b) Great Britain.

(5) A report of the review under this section shall be laid before the House of Commons within one calendar month of its completion.”” —(Jonathan Reynolds.)

This new clause requires HMRC to carry out a review after the first year of operation of the Northern Ireland rate of the effect of the changes in Schedule 7 on the location of companies in Northern Ireland and in Great Britain, the extent to which trading profits and losses are treated as subject to the Northern Ireland rate and on employment in Northern Ireland and in Great Britain.

Brought up, and read the First time.

Question put, That the clause be read a Second time.