Tuesday 23rd April 2013

(11 years ago)

Commons Chamber
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Lord Coaker Portrait Vernon Coaker (Gedling) (Lab)
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I beg to move,

That this House notes the significant and positive developments in Northern Ireland in recent years; acknowledges that challenges remain; and reaffirms its commitment to supporting peace, progress and prosperity in every community.

It gives me great pleasure to move the motion on the Order Paper in my name and those of my right hon. and hon. Friends, and to open the debate on behalf of Her Majesty’s Opposition. Hon. Members do not often get the chance to discuss Northern Ireland on the Floor of the House and I welcome this opportunity. It is good to see many Northern Ireland Members in the Chamber. The motion enables them to speak with a great deal of flexibility on the many issues that affect their constituents.

Ian Paisley Portrait Ian Paisley (North Antrim) (DUP)
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I appreciate the hon. Gentleman giving way so early in the debate. I commend him, as a Front-Bench spokesman, for leading a debate on Northern Ireland. It is important to put on the record that this is the first Front Bencher-led debate on Northern Ireland since the 2010 election.

Lord Coaker Portrait Vernon Coaker
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I thank the hon. Gentleman for his remarks—I hope he feels like that at the end of my speech as well as at the beginning. In all seriousness, I am grateful for his remarks. The issues that affect Northern Ireland are taken seriously on both sides of the House. We need to debate them and to consider the challenges.

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Theresa Villiers Portrait Mrs Villiers
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It is certainly a great disappointment that the legislative consent motion has not been adopted by the Northern Ireland Executive. I understand that policing matters are hugely sensitive in Northern Ireland, for all sorts of historical reasons, but I am concerned that the abilities and the international reach of the National Crime Agency will not be available to the PSNI. Discussions are continuing on whether it will be possible to persuade the Northern Ireland Executive to provide a legislative consent motion in the future.

The right hon. Gentleman is right to highlight the question of the proceeds of crime, a matter currently dealt with by the Serious Organised Crime Agency. It would be unfortunate if such work in Northern Ireland were not taken over by another body. If it is not taken over by the NCA, it would be a matter for the PSNI and the Northern Ireland Executive to consider developing an alternative capability. Discussions are continuing, and I have discussed the matter with David Ford on a number of occasions. He has done an excellent job on trying to build consensus for this change, and we will continue to support him on that. The Home Secretary also takes a close interest in this matter, and she is considering how the NCA will operate in relation to matters that are still the responsibility of Her Majesty’s Government, including UK border matters and matters relating to Her Majesty’s Revenue and Customs.

The Government’s first duty in Northern Ireland is to keep people safe, and it is one that we will not shirk. I fully recognise, however, that terrorism will not be brought to an end by security means alone. As well as exercising continuing vigilance on security measures, we need to make progress on our other objectives—on the economy and on addressing sectarian division—if we are to address the problems on which paramilitaries will always try to feed.

I should like to provide some reassurance to hon. Members on the economic points that have been raised today. On taking office, this Government faced the largest deficit in the G20 and the largest in the UK’s peacetime history. In three years, we have cut that deficit by a third, and more than 1.25 million new jobs have been created in the private sector. In Northern Ireland, Labour left us with an economy that was heavily dependent on public spending—even more so than at the time of the Belfast agreement in 1998. Some studies have suggested that public spending accounts for as much as three quarters of gross domestic product in Northern Ireland. Of course I understand the historical reasons that have contributed to that, but it is unsustainable in the longer term. We simply cannot go on as we are.

Under the devolution settlement, many policy areas on the economy and unemployment fall within the Executive’s remit, and I warmly welcome the work that they have done on crucial economic matters, including their great success in attracting inward investment.

Ian Paisley Portrait Ian Paisley
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There are many things that the Government can take credit for, but the biggest disappointment for anyone in the business community is their failure to take a decision on corporation tax. That failure has been a knockout blow; it is sad, and it reflects a lack of urgency to move forward for the business community.

Theresa Villiers Portrait Mrs Villiers
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I hope that the hon. Gentleman will welcome the fact that the Government are planning to reduce corporation tax across the UK economy. The Prime Minister has also set a clear pathway to a decision on whether corporation tax decisions could be devolved to Northern Ireland. The reality is that significant technical issues need to be resolved before a decision can be taken on the principle of whether to devolve the power. There are also wider constitutional issues to be considered in the context of the referendum on Scottish separation.

Significant economic responsibilities are retained by Westminster, and I am working with the Northern Ireland Executive on our shared objective of rebalancing the economy by boosting the private sector and pursuing a strongly pro-enterprise agenda. That is why we are cutting corporation tax from 28% under Labour to just 20% by 2015—the lowest rate in the G7 and joint lowest in the G20. The Prime Minister has made it clear that a decision on whether to devolve the setting of corporation tax rates to the Northern Ireland Assembly will be made in the autumn of next year.

Our deficit reduction programme has helped to keep interest rates at record lows, helping businesses and households across Northern Ireland, and our new employment allowance will see national insurance cut for 25,000 Northern Ireland businesses, with 10,000 small and medium-sized enterprises paying no tax on jobs at all. This will provide better help for business than Labour’s one-off national insurance tax break.

We have exempted Northern Ireland electricity generators from the carbon price floor, to provide a level playing field with the Republic. That was a key ask from the Northern Ireland business community, as well as from the Executive. We have also devolved long-haul air passenger duty to help to save our direct air link with the United States, again at the direct request of the Northern Ireland Executive.

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Lord Dodds of Duncairn Portrait Mr Dodds
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That is absolutely right and, interestingly, when Sinn Fein voters were polled, a quarter of them also said they would stay in the United Kingdom. So, certainly from our perspective, things are changing in Northern Ireland in a positive and good way.

We face a number of challenges, however, including some major economic issues. We have heard a lot about them already today. In trying to build the economy, tourism is a key sector, and today is Titanic Belfast’s first anniversary. That is an iconic building, and I take some pride in it because I brought the project to the very first meeting of the Executive when I was Economy Minister in 2007, and we managed to get some substantial financial support for it. People at that stage queried whether it would be a success, but today it can be proved that it has been a success, because in the first year there have been 807,340 visitors, almost half a million of them from outside Northern Ireland and from 128 different countries. That contributed almost £30 million to the economy. It is a fantastic benefit to Belfast and to Northern Ireland as a whole. It is a world-class tourism project and product.

I recently visited the Giant’s Causeway visitor centre, built under the Northern Ireland Executive, which is attracting lots of visitors, again from outside Northern Ireland, which is the key point because it has added value to the economy. In 2012, the Olympic year, hotel occupancy in Northern Ireland in June was at the same level as that in central London, which is incredible when one thinks about it.

Ian Paisley Portrait Ian Paisley
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My right hon. Friend is absolutely right to put his finger on where visitors are coming from. It is not a marginal outside increase. Apparently, of the million people who have visited the Giant’s Causeway and the Titanic centre this year, 60% are from outside the United Kingdom.

Lord Dodds of Duncairn Portrait Mr Dodds
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Yes, and these are very important figures, because in the past a lot of tourist attractions were dependent on repeat visitors from within Northern Ireland or from over the border, which is increasingly unsustainable in the long run. But sights of the magnitude of the Giant’s Causeway, the Titanic, St Patrick’s trail and Londonderry and the walls are all great visitor attractions. Londonderry is the UK city of culture this year. We have the G8 coming to Fermanagh as well, so there are lots of fantastic things happening in Northern Ireland. When we consider what it was like just a generation ago, we can see what can be done when politics works, and we all have a part to play in building on the peace and stability that has underpinned that progress.

Recently, of course, times have been tough. Despite the economic downturn and recession, we have still been able in Northern Ireland to attract high degrees of foreign direct investment. We are still the second best area in the United Kingdom outside London for attracting such investment, which is a very significant statistic. In the past five years, the Northern Ireland Executive have spent more on infrastructure—roads, schools, hospitals and housing—than at any time in Northern Ireland’s history. More jobs than at any time in history have been delivered by the Executive, at a time when we are delivering the lowest local taxes in the whole of the United Kingdom. Peace, stability and opportunity make a real difference to the lives of those who live in Northern Ireland.

That said, Mr Deputy Speaker—I am conscious of your earlier injunction—I want to say that it is important, as my hon. Friend the Member for North Antrim (Ian Paisley) said, that the Government act on corporation tax. While we welcome the moves that were made in terms of the help that the Secretary of State enunciated and the financial backing given to the Executive, and although the Executive have done a considerable amount on business rates and domestic rates and in helping lending to small businesses, and in backing the work of Invest Northern Ireland, there is no doubt, and it is the consensus among the political parties in Northern Ireland, and among business and industry, that what is needed is a game changer. If we are to alleviate high unemployment and reduce dependency on the public sector, something like the devolution of corporation tax is needed to make that happen. Of course, it is important that we retain our 100% regional aid status as far as Europe is concerned.

As for the political challenges that we faced, very briefly we have come a long way to achieve the stability and durability of the Executive and the Assembly. That must not be underestimated and should never be taken for granted. We all must continue to work hard to make sure that it is not undermined. But there is a case to be made—the people of Northern Ireland on all sides have expressed this many, many times—for reducing the bureaucracy surrounding the Assembly and the Government Departments. We have too many Government Departments with too big an Assembly. Too much is being spent on governing the place.

I welcome the fact that the review of public administration will reduce the number of councils, streamlining local government. We on the DUP Benches support the reduction in the size of the Assembly, support the reduction in the size of Government and support the idea of introducing an Opposition to the Assembly set-up, but there are other parties in the Assembly that, to varying degrees, do not lend support to that. I hope that, in the coming years, we can look back on this debate and say, “From then on, there was the desire to make devolution, and the Assembly and the Executive, work even better.”

The issues to do with the shared future, the past and how we can ensure that all sections of our community benefit from peace and stability, are absolutely key. I do not have time to go into all those, but it is incumbent on us all to work together—all the political parties in Northern Ireland, with the Government here—to move these issues forward. They cannot be left in abeyance. It is absolutely critical. I know that in the constituency that I represent, North Belfast, there are many people who, when they consider the impact of welfare reforms, or the economy, or the reductions in the public sector, and the wider political process, do have a sense of grievance. While we acknowledge and address those issues, it is the job of all of us to ensure that the positive is put forward, that we continue the progress of the last 15 years over the next 15 years, and that we continue to build on the peace and stability that has been created in Northern Ireland.

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Ian Paisley Portrait Ian Paisley (North Antrim) (DUP)
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Thank you very much for calling me, Madam Deputy Speaker.

Let me reiterate the thanks to the Opposition Front Bench spokesman and the Secretary of State for the way in which the motion was introduced, as well as the terms in which it was introduced. It was not a eulogy to the past or to one political philosophy. That is a mature way to approach things, because we are all good at trying to explain and justify why we are here and how we got to this point, when in fact our job as politicians and leaders in the community is to explain to people and give them hope, to co-ordinate and concentrate on where we are going to take them and to give them a forward-looking agenda. I am delighted that today’s debate has largely been about forward-looking policies and ideas and identity, which is important.

There is no doubt about it: Northern Ireland has changed. The legacy we have inherited has changed from when I grew up, when it was mainly a bloody and difficult politics to grow up in, to now, when it is mainly just a difficult politics to grow up and work in. The hon. Member for Vauxhall (Kate Hoey) is absolutely right: there are difficulties and we should not try to brush them under the carpet, but thankfully they are no longer bloody and difficult problems, but largely just difficult problems. That is an important point.

There have been positive developments. Let me turn briefly to the employment situation in Northern Ireland, which is largely pinned to that in the rest of the United Kingdom, so we are sitting at about 8.5% unemployment. That is slightly higher than the rest of the UK, but it is certainly not as high as in the Republic of Ireland, at almost 15%, or the eurozone in general, at 12%, so there is a clear benefit to continuing with the economic link, which shows that we are stronger together than apart. Jobs have been created in the last term of the Assembly; in fact, 10,244 have been created in the life of the Assembly. That is pretty incredible for Northern Ireland, given the disadvantages and problems, which we are well aware of. Indeed, £500 million of investment from overseas has been secured, and although Northern Ireland represents 2% of the UK population, 7% of all foreign direct investment comes to Northern Ireland. Those statistics on their own are encouraging in helping us to grow, develop and find a way forward.

We are a successful region, but there are obviously difficulties and challenges, and we should look at some of those. It is disappointing that one in four Sinn Fein members still believes that it is okay to murder a Protestant. That is the stark reality—that is what they said last week at their party conference when polled by the Belfast Telegraph—so leadership needs to be shown to bring that community to the point where it is never justifiable to murder for any cause. We need to make that absolutely clear.

I agree with the sentiments expressed by Micheál Martin, the leader of Fianna Fáil, when he said that a move towards a border poll would be some sort of “half-baked” gimmick. He was absolutely right, and I am glad that the Secretary of State pinned her colours to the mast today and said that she was not going to waste her time on such a poll. It is welcome to be able to clear that matter up and move on.

The hon. Member for Tewkesbury (Mr Robertson) was absolutely correct to identify the hard work that our Select Committee is doing on fuel laundering. I know that he has briefed the Secretary of State on that matter, and I urge her and her office seriously to pursue the issues that he has put before them. They are serious issues, and they demonstrate that there is something really rotten at the heart of things. They must be addressed eagerly and with energy, so that we can put those smugglers out of business once and for all. They are stealing money from the pockets of ordinary citizens in Northern Ireland.

I have already mentioned the issue of corporation tax, and my disappointment that the Government think that a technical matter—namely, Scotland as part of the Union—is preventing us from devolving that power. I really feel that the Government should have addressed this matter much faster. The National Crime Agency has also been mentioned, and it will be disappointing if we do not achieve a level playing field for every citizen of the United Kingdom in that regard. Each of them should be part and parcel of the area in which the NCA deals with the terrible issues such as slavery, prostitution and all the other rackets that go on. It is important that Northern Ireland should have the same standing in that regard.

I want to draw the House’s attention to a full frontal attack on £16 million-worth of salaries in Northern Ireland. I have waited some time for an opportunity to put this matter on the record, and the Government must address it. They are contemplating plain packaging for cigarettes, and they are now indicating that the proposal might be in the Queen’s Speech in a matter of weeks. We need to be absolutely clear about this. According to the response to a freedom of information request, which is in the House of Commons Library, the Under-Secretary of State for Health, the hon. Member for Broxtowe (Anna Soubry) was interviewed by Patrick Wintour of The Guardian on or about 28 February. Five days later, on 5 March, an article appeared in that newspaper indicating that the proposal was going to be in the Queen’s Speech. That drove 2.8% off the stock market value of the shares of a manufacturing company in the United Kingdom. The share price has not yet recovered, despite Ministers’ denials that they are going to introduce such a policy on 8 May.

The Government have a duty and a responsibility to defend employment in Northern Ireland. They might not like what is being manufactured, but that industry keeps 1,100 people in jobs in Northern Ireland and puts £60 million directly into the wage economy there. More importantly, it supports tens of thousands of other smaller companies including retail shops and other minor businesses in the locality. The Government have a serious responsibility to stop that full frontal attack on business in Northern Ireland and to address this matter once and for all. I hope that they will not put the proposal into the Queen’s Speech, and that instead they will have a serious look at defending our manufacturing industry in the tobacco sector. They will have a serious problem if they do not do so.

I ask the Minister to ensure that the freedom of information request in the Library is looked at, and to give consideration to an inquiry into whether anyone gained from the drop in share price that occurred in the five days between that interview taking place and the article appearing. Any such inquiry should look into who benefited from that share value drop, as this could be a very serious matter for all those involved in what I think was a deliberate attempt to undermine that business and to adjust share pricing, which has affected business in Northern Ireland.

I shall turn now to two events that summarise the progress that has been made in Northern Ireland. I had the sad duty, and honour, of accompanying the hon. Member for Beckenham (Bob Stewart) to the 30-year anniversary of the Ballykelly massacre. When I stood with him in that little church and helped to lay the wreath, I remembered how, as a 16-year-old, I had heard about that awful atrocity and witnessed the pictures of what had happened at the Droppin Well discotheque. It was awful, but it was the signature that appeared in most of our lives as teenagers growing up in Ulster during the ’70s and ’80s.

If we fast forward to last weekend, I spent the day with my hon. Friend the Member for East Londonderry (Mr Campbell). We toured around our constituencies and visited the Coleraine football club and its liaison officer, Andy Alcorn, and the community liaison team. We looked at 600 young people from all across the region—from Magherafelt, Cookstown, Ballymoney, Ballymena, Coleraine, Bushmills and Ballycastle—who came into the heartland of Coleraine. There they were—whether it be the Magherafelt Celtic team or the Carniny football team from Ballymena—working together, playing soccer together and enjoying sport together, even though they were from a divided community. That signifies the hope of what our future might be, as our children grow up in a much more peaceful Ulster than my generation had the chance to do. We therefore have the opportunity to create and to develop the change—not just to hope it happens, but to create it and make sure that it does.