Northern Ireland (Regional Rates and Energy) Bill

Gregory Campbell Excerpts

2nd reading: House of Commons & 3rd reading: House of Commons
Wednesday 21st March 2018 Commons Chamber

[Karen Bradley]

I thank the right hon. Gentleman. He is right that it was cross-party, cross-community view that the pay rise should not go ahead, which is why we are legislating today.

Returning to domestic rates, I well understand the concerns that people will have, but this important measure will address a hole in the budget for 2018-19, so that public services can still be delivered. In my view, the measure represents an important contribution to delivering a sustainable budget picture for 2018-19. As the budget consultation launched by the Northern Ireland civil service last year pointed out, there are important conversations to be had about the right balance in Northern Ireland between revenue raising and spending efficiencies, and that document discussed rises in regional rates of as much as 10% above inflation. Having reflected on conversations with the parties and stakeholders more broadly, and having understood the pressures on key services, I concluded that it was right that we ask households to pay a little more to help to protect and preserve public services.

However, I also considered that we had to balance that increase at the right level. That is why I propose a 3% on top of inflation rise—less than £1 a week for the average household—to help to address pressures in health, education and elsewhere. It is also why I have held business rates in line with inflation—within a broader budget envelope that allows the safeguarding of the small business rate relief—to keep a focus on the growth that Northern Ireland needs to see. That forms an important part, along with the flexibilities that we set out in last week’s budget statement, of helping Northern Ireland to live within its means at a challenging time, maintaining the UK Government’s responsibilities to uphold good governance in Northern Ireland.

[Mr Gregory Campbell (East Londonderry) (DUP)]

Does the Secretary of State agree, in addition to the information that she is imparting to the House, that the onus falls on district councils as well because they set a district rate? If they are effective and efficient, the increase will be even less than she has indicated.

[Karen Bradley]

The hon. Gentleman makes an important point. We all know that local government finances operate at both district and regional levels, and he is absolutely right to make the point that some of the regional rates paid by households go to district councils. It is important that they reflect the efficiencies that we are asking the rest of the civil service to reflect. As the Bill makes clear, nothing that we do would cut across the continuing right of the Executive to set a rate by order in the usual way. Should a devolved Government be restored in Stormont, they would therefore be able to make an Executive decision about the regional rate.

Clause 2 deals with the administration of Northern Ireland’s renewable heat incentive scheme, which was established in 2012 to support efforts to increase uptake in the use of renewable energy. However, owing to incorrect assumptions about boiler size and usage, tariff levels and lack of cost controls led to substantial excess payments. Over the 20-year lifespan of the scheme, the projected overspends were well over £500 million, with £27 million of overspend in the 2016-17 year alone, putting the sustainable finances of the Northern Ireland Executive at significant risk.

As colleagues will be aware, the administration of the scheme and the circumstances that led to errors in its administration are subject to an ongoing public inquiry. One of the final acts of the last Executive was to introduce regulations in January last year that put in place robust cost controls. Those made sure that the costs were sustainable. They were put in place only for a year, to allow for longer-term consideration of the scheme as a whole.

--- Later in debate ---

[Mr Gregory Campbell]

Does my hon. Friend agree that just over year ago there was the most outrageous and disgraceful calumny in Northern Ireland as regards the reporting on the RHI scheme? A small number of journalists repeated the untruth that the money had been spent—had already gone up in smoke—and exacerbated people’s fears unnecessarily, leading to the beginning of a state of crisis even before the Government fell?

[Emma Little Pengelly]

I thank my hon. Friend for that intervention. I absolutely agree. Language was used to the effect that the money had turned to ash.

We have to be aware that many people do not get the detail of some of these schemes. They are not privy to the information that those who are delivering a scheme or have examined it may be privy to. The language used gave the clear impression to people—this was a misunderstanding—that the money had disappeared, but that was not the case. Yes, it is disappointing that there were flaws within the scheme. I welcome the fact that we moved, and moved quickly, to eliminate any overspend on the scheme—this measure will virtually eliminate that—and to protect public money. I welcome the Secretary of State’s clarification about the projected cost saving of £450 million-plus over the lifetime of the scheme.

I welcome the fact that the regulations survived a legal challenge over the past year. That is an important point, because the situation caused concerns to be raised when we discussed it in the Northern Ireland Assembly. I welcome the fact that the courts looked at this and listened to the public interest. The Bill represents a continuance of those regulations. I urge the Secretary of State to consider implementing these mitigations on a more permanent basis, rather than their needing to being continued on a year-on-year basis. I understand that that was the intention prior to the collapse and, as my right hon. Friend the Member for East Antrim indicated, that would have happened following consultation with all the relevant parties about putting measures on to a much firmer footing.

I was disappointed that the shadow Secretary of State did not eventually give way to me, despite indicating that he would do so. I was in fact rising to offer support for what he was saying. I think that my record shows that I might have come across as a little critical in some of my interventions on the hon. Gentleman, but I have always tried to be informative as opposed to critical. I was going to tell him that the WAVE campaigners on pensions for severely injured victims of the troubles are over here at the moment. Along with my DUP colleagues and our party leader, I had the opportunity to welcome them to the House of Commons last night to speak to them about this issue in some detail.

I have been supporting those individuals and encouraging them to speak to as many people as possible about this issue. I extend my thanks to those Members who have met or will meet them, including the Scottish National party shadow spokesperson, the hon. Member for Edinburgh North and Leith (Deidre Brock). Such meetings are very valuable, because they have a very powerful story to tell. I was also going to say to the shadow Secretary of State that this issue extends far beyond Northern Ireland. It absolutely should be seen as an issue right across the United Kingdom, because there were many victims over the course of the troubles from right across the United Kingdom, and a number of them were severely disabled. Although there is no doubt that some elements of dealing with victims’ issues are devolved, this is a UK-wide issue.

The other issue I wanted to raise in support of the shadow Secretary of State relates to the fact that this is a legacy issue. As we have said, my party has been involved for many years in discussing how to deal with the very troubled and tragic legacy that arose from the troubles in Northern Ireland. In those discussions, there was an agreement across all parties that some of these issues happened at a time when there was direct rule and no devolved government. Some of the issues go much wider than Northern Ireland with regard to dealing with the legacy of the campaigns of violence. That would be recognised through the Government considering, drafting and bringing forward legislation to deal with a mixed range of issues, some of which would have been devolved and some that would not. I see no reason why such legislation could not contain provisions to support those who are very much in need of support through a victims’ pension. The people who are over here are victims of some terrible, terrible atrocities, and they are suffering the consequences. I urge those Members who have not spoken to them to take the opportunity over the next couple of days to do so.

With reference to business in Northern Ireland, I welcome the very positive words about looking into the establishment of a business forum to discuss these matters, because the Secretary of State and the Minister will both know from listening to people from the business community that they have some concerns. They think it is right that their voices are heard. Of course, there is a positive story about business in Northern Ireland, as outlined by my right hon. Friend the Member for East Antrim. Despite the political difficulties, business is doing well. Invest Northern Ireland is working hard. Businesses are benefiting through foreign direct investment. We want that to continue. We will be doing everything in our power, within our role, to work with our partners across Northern Ireland and across the House to try to ensure that Northern Ireland works and that we have the best possible outcomes for everybody across the community in Northern Ireland.