Northern Ireland Budget (Anticipation and Adjustments) (No. 2) Bill Debate

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Department: Northern Ireland Office
Karen Bradley Portrait Karen Bradley
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Of course, there is full scrutiny of the Northern Ireland block grant—that is the estimates process that we went through last week in this House; this House is able to scrutinise the block grant. I well accept the point the hon. Lady makes about the undesirable level of scrutiny and about how the allocations are made between Departments. I do not disagree with her on that. It would be much better to have the full scrutiny process that a devolved Executive would be able to deliver. We are in a very unsatisfactory position. I would rather we were not doing this in this way, but to ensure that public services continue to be delivered and that public servants—the civil servants in Northern Ireland—have the statutory underpinning they need for the spending, we are taking forward this budget Bill. I would really rather we were not.

Karen Bradley Portrait Karen Bradley
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I will take one final intervention and then I will make some progress.

Gavin Robinson Portrait Gavin Robinson
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The Secretary of State is right about the difficulty we are in because Stormont is not sitting, but that does not obviate the need for the process that this House should be engaged in. There is no need for this Bill be done through emergency procedures—there is no need for it to be fast-tracked. The explanatory memorandum says that the Bill is being fast-tracked because there was a hope that the Executive would have been restored to make the provisions. When in the past two months was there any genuine prospect of the Assembly being restored to go through this process? Our Committee stage is to be constrained this afternoon—we might get an hour or we might get 45 minutes on the Floor of this House. That is not satisfactory; we have the tools and the mechanisms in Parliament for full Bill Committee consideration of the estimates and future allocations. There was also the opportunity for the Select Committee on Northern Ireland Affairs to get into these discussions. The Departments are very good at appearing before the Committee chaired by the hon. Member for South West Wiltshire (Dr Murrison). We should have used those processes, rather than this constrained, fast-track process today.

Karen Bradley Portrait Karen Bradley
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I understand the hon. Gentleman’s concerns, but we have to be aware of the constitutional precedents that are set by changing the way we scrutinise these Bills. The way this Bill should be taken through is not as primary legislation; it should be an estimates process done in Stormont, in the same way as we vote on our Budget in this House. We do not have scrutiny of the Budget resolutions upstairs; we have a Finance Bill that puts them into legislation, but we vote on Ways and Means resolutions on the Floor of the House. Unfortunately, we do not have the ability to do that in Stormont, for well documented reasons. What I want is to see those politicians in Northern Ireland doing the right thing, coming back to Stormont and forming the Executive, so that all those proper processes can be applied. We should not kid ourselves that some substitute arrangement will offer a different approach; we have to see devolved government restored in Stormont.

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Tony Lloyd Portrait Tony Lloyd
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When John Major was engaged in the talks process leading up to the Good Friday agreement, and Tony Blair even more intensely so, there were many preconditions on the table—of course there were. That is the nature of a talks process. Anybody who has ever engaged in meaningful negotiations knows that people do not walk in with no agenda, but the talks process has to get them together and iron out the differences. It has, in the end, to say what is held more in common and what is more important.

I will go through some of the things that, in the end, are more important when we look at what is not taking place in Northern Ireland now—some of the things that hon. Members have already raised. The hon. Member for North Down (Lady Hermon) mentioned the Hart inquiry. The Secretary of State has heard the demands in this Chamber, on a regular basis, that she take action. We have to look at the people across Northern Ireland. The politicians from all sides say that they want to get back to Stormont. Yes, we have to test the competence and the willingness of politicians really to negotiate, but the trade unions, the business community and civil society are also saying, “Let’s get Stormont back working.” That is so important, because without it the decisions are not being made that can make a material difference.

The business community and the trade unions have recently said to me that they cannot get decisions made on infrastructure investment. I know that the hon. Member for East Londonderry (Mr Campbell) will agree that the Derry and Strabane city deal is fundamental, and my hon. Friend the Member for Bristol South (Karin Smyth) will talk later about the pressing importance of a decision on the medical school there. Decisions are required on the upgrading of the A5 and the A6 and on higher and further education. This might sound like a trivial issue, but decisions are required on sewers in Belfast. The sewerage system in Belfast requires £800 million. People may wonder why that matters, but from 2021, no new facility will be connectable to that water and sewerage system. We want to see the Belfast city deal bring in new offices, industries and hotels, but that will not be viable if the sewerage system is not capable of taking them on board. That is not a joke; it is very serious.

Gavin Robinson Portrait Gavin Robinson
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The hon. Gentleman is making an important point. I want to give another example, which is the Belfast power plant. When the Northern Ireland (Executive Formation and Exercise of Functions) Bill went through the House, we indicated the need to get planning consent for that, so that it could form part of our capacity auctions and the Utility Regulator could factor it into our future energy requirements. Without it, we will not be able to keep the lights on. Four months on from that Act being passed, we still do not have a decision, and we need decisions where they can be taken.

Tony Lloyd Portrait Tony Lloyd
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The hon. Gentleman is right. Electricity is fundamental to our way of life. It is not a bolt-on extra, and it is not just a question of keeping the lights on; it is a question of keeping hospitals working and the world of work functioning. That is fundamental.

I want to touch on one area of progress. I am delighted to see that £55 million has been put into the budget for the legacy coronial process, which is a really important step forward. That is a decision by the Department of Justice, within the framework of this budget. However, there will be a consequence of that coronial process. If it is successful, which we all hope it will be, it will put pressure on the Police Service of Northern Ireland, the police ombudsman and the Public Prosecution Service. Those bodies will all need a resource base that allows them to complete the work of the coronial process. Otherwise, we will be giving an illusion to the families of victims of crime.

In that context, I also want to mention pensions for the victims of violence. There are issues to be resolved, but nobody in the Chamber would disagree that those pensions are necessary. All these things are urgent, because we have an ageing population, whether it is Hart victims or victims of the violence during the troubles. They will die without resolution of these issues unless action is taken.

I am bound to compare this issue to what we will discuss tomorrow, which is the contentious issue of tariffs under the renewable heat incentive. That is urgent, and the Government are acting—even though it is outwith the norms of Government power, according to the Secretary of State’s definition—because it is about money. The issues relating to the Hart victims and victims of terrorism are human issues, and they are just as urgent. If we can act on one such issue, we should think seriously about acting on others.

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Gavin Newlands Portrait Gavin Newlands (Paisley and Renfrewshire North) (SNP)
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For another year, I rise with a degree of reluctance as we agree a budget that should be debated about 300 miles from here. I am sure that hon. Members across the House will agree that this situation is deeply regrettable. Devolution should be cherished, and its success is vital to the growth and prosperity of Northern Ireland. I believe unequivocally that this budget should not be voted on by politicians in this place representing constituencies in Scotland, Wales and England. Also, as others have said, this emergency legislation process affords ineffective scrutiny. I once again urge the Government to redouble their efforts to begin talks in earnest as soon as possible, so that they can be the effective arbiter required to bring an end to this impasse. If they cannot do that, they should bring in someone who can.

The collapse of the Executive and the subsequent failure to deal with the situation have placed huge, unsustainable stress on the civil service in Northern Ireland. I join the hon. Member for South West Wiltshire (Dr Murrison) in praising the Northern Irish civil service for all the work it has done in these tough times without an Executive. In our opinion, direct rule can never be countenanced, but as the shambolic Brexit process is now a central reason for the ongoing crisis, the UK Government have a responsibility to ensure that talks progress swiftly.

Amid ongoing austerity, the absence of decision making is straining Northern Irish public services. Decisions are urgently required to provide direction and funding to vital services. The current conditions are placing particular pressures on health and education, which are the most important services that a Government can deliver. It is for this reason that I want to make it clear that I do not begrudge the additional money that is going to be made available for public services in Northern Ireland—far from it. We have been calling for additional public spending from Westminster for years. However, it must be said that, under our agreed devolved settlement in this precious Union of equals, both Scotland and Wales should also receive additional funding. Successive UK Governments have inflicted brutal austerity measures on Scotland and Wales, as well as on Northern Ireland. That extra funding could be a small step towards repairing this recklessly inflicted damage. Indeed, if the Barnett formula were applied as it should be, Scotland would receive an extra £400 million for its budget.

Last year, the economy of Northern Ireland did not keep pace with the rest of the UK and it lagged far behind that of the Republic of Ireland, which was growing around four times faster. That just shows what a small independent country in the EU is capable of.

I firmly believe that investment in good public services and infrastructure is vital to the success of any economy. There is £140 million of new funding in recognition of the lack of opportunity for more “fundamental service reconfiguration”—a nifty wee phrase with which the Treasury and the Northern Ireland Office are attempting to circumvent the regular budgetary process. We cannot forget that that is in addition to the £333 million of funding that comes from the Government’s confidence and supply agreement with the Democratic Unionist party. Some of the money seems to be allocated effectively, with £100 million to support health transformation, £3 million for broadband and £200 million for capital spending on key infrastructure projects. I particularly welcome the £30 million to tackle poor mental health and severe deprivation. However, despite my jealousy at that extra investment, I would never countenance the SNP selling its soul to prop up a Government who do so much harm to our citizens and are hellbent on ripping us out of the EU, for which neither Scotland nor Northern Ireland voted, and the reasons behind the positive spending are more than a little suspect. In fact, many say that the extra funding is just a Brexit bung to buy off the DUP.

The extra revenue allocation falls outside the normal budgetary processes deliberately to ensure that Scotland and Wales are denied their rightful Barnett consequentials. That raises huge questions of the Secretary of State for Scotland, who said unequivocally that he

“was not going to agree to anything that could be construed as back-door funding to Northern Ireland”.

He has been written to this week, but he had not replied by the time that I stood up to speak, so does the Secretary of State for Northern Ireland know when the Secretary of State for Scotland was informed that the additional moneys would not be subject to the Barnett formula? Did he agree to that? Most importantly, did he even argue that Scotland should be entitled to its fair share of budgetary increases? If he did not, he must simply go.

Gavin Robinson Portrait Gavin Robinson
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I know that the hon. Gentleman wants to make an elaborate political point, but he is not a churlish individual and will have heard this afternoon that we do not have devolved Ministers who are able to take account of financial pressures and make decisions accordingly. That is the rationale for the additional funds. Scotland is blessed with a functioning Government, and we wish we had one, but he should not try to extrapolate this proposal into some cheap point.

Gavin Newlands Portrait Gavin Newlands
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I do not accept that I am making a cheap point, but I fully accept the hon. Gentleman’s central point. We would not be strong Members of Parliament for Scotland if we were not here to represent Scottish interests, and the Barnett formula is there for a reason.

The Secretary of State for Scotland should have used his position in Cabinet to stand up for Scotland and protect the Barnett formula, but he did not. If he did, the Scottish budget could have increased by £400 million. Moreover, if he had stood firm regarding the confidence and supply agreement in its entirety, Scotland would have had an extra £3 billion to mitigate this Government’s policies, to prepare for Brexit and to invest in infrastructure, but he either failed or did not bother. He has abdicated his responsibility to Scotland and, despite various promises that he would resign with regard to protecting Scotland interests vis-à-vis Brexit, he has bottled it each and every time.