Northern Ireland (Welfare Reform) Bill

Debate between Gregory Campbell and Alasdair McDonnell

Monday 23rd November 2015 Commons Chamber

[Dr Alasdair McDonnell (Belfast South) (SDLP)]

Thank you, Mr Deputy Speaker, for the opportunity to contribute to this debate. It provides us with a brief opportunity to examine the provisions of the Bill in some detail, but I cannot help thinking that the much more appropriate place for such a debate and decision making would be the Northern Ireland Assembly. It is no secret that welfare reform has proven a contentious issue not just in the last round of talks, but for some time. The Secretary of State and the Under-Secretary will be familiar with the many arguments that I and colleagues made, not only over the past 10 weeks, but in the annual crisis talks that we have held over the past three years.

On a point well made by the shadow Secretary of State, focusing on welfare reform in isolation and neglecting the serious challenge of joblessness will simply fail. It will not work. Punishing and sanctioning people for a failure to get a job that does not exist, without looking at the wider economy, is economically illiterate. The Secretary of State will no doubt assure us that the proposed changes to corporation tax will solve all our problems, but I do not believe they will and a large number of experts agree with me. Corporation tax is a valuable tool at our disposal, but it is not the silver bullet. It will not solve all the problems. The SDLP has always agreed with the need for welfare reform, but never at the cost of crucifying some of the most vulnerable and marginalised in our society.

Over 10 long weeks of negotiation the Secretary of State has heard me and other colleagues repeat the need to move away from welfare reform and start to address the serious issue of joblessness. Although our hard-won peace process helped transform Northern Ireland, it was never meant or expected to be the final chapter. The majority of sensible people believe that if we are to see our society and its people fully emerge from conflict, we need another kind of transformation. We need a prosperity process that produces training, skill development and economic opportunity. We need to do something about the vicious downward spiral of low skills, low wages and low productivity that strangles much of our economic hope.

At the core of our prosperity process has to be strong collaboration between business and third-level education, linked in turn to research and development investment, in line with best practice in Britain, the south of Ireland and right across Europe. It never ceases to shock me that Northern Ireland has a population of 1.8 million and a mere 700,000 of them—much less than half—are economically active. We are falling much too far behind our neighbours on this side of the Irish sea, in the south of Ireland, and across Europe. A massive programme of sustainable economic regeneration is urgently needed to generate the revenues we need to build prosperity in Northern Ireland. If fewer than half of our population are economically active, how can that not have a devastating impact on living standards for so many?

We must tackle the low level of economic activity in that adult population by seeking to provide a wide range of regionally balanced economic opportunities. Our goal must be to get at least 1 million of those 1.8 million people across Northern Ireland into meaningful and worthwhile work. Lifting our economy is one of the best ways of helping those on welfare to get the hand up that they are promised. We must put meaningful economic regeneration at the heart of our devolved Administration. Only then can our people realise their hopes, aspirations, ambitions and full potential.

I am deeply disappointed that the “Fresh Start” agreement made no reference to job creation, economic development or prosperity, despite these issues being raised repeatedly at every plenary session of the recent talks. The biggest challenge that we face is getting people into work or into meaningful apprenticeships and genuine skill improvement as a pathway towards jobs. I repeat that we are caught in a vicious downward spiral of low skills, leading to low wages, and, in turn, to very low productivity. This cycle has to be broken.

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

Does the hon. Gentleman agree that low skills and unemployment would hardly be helped if this Bill were to be stopped and £10 million a month of penalties reinstated?

[Dr McDonnell]

I welcome the hon. Gentleman’s comment, but the point I am making—I hope he would take it because it affects his constituency as well as mine—is that it is all very well to talk about moving people from welfare into work in places like the south-east of England or London, where there are jobs, but we cannot move people from welfare into work if there is no work for them to go to.

The vicious cycle has to be broken, but it will not be broken by pious platitudes or wishful thinking; it can be broken only by active intervention by both the Government here and the Executive at Stormont. I repeat my previous calls to the Secretary of State and to the Northern Ireland Executive to honour commitments that we have discussed across the negotiating table over the past 10 weeks, and plead for each of us to play whatever part we can in generating prosperity. If we fail to create prosperity, we run the risk of the institutions failing again, with recurrent crises and a return to the process through Stormont House 3, which none of us wants.