Northern Ireland Budget (No. 2) Bill

Ian Paisley Excerpts

2nd reading: House of Commons
Monday 9th July 2018 Commons Chamber

[Karen Bradley]

The hon. Lady is nothing if not persistent. She quizzed me extensively about that matter at the Northern Ireland Affairs Committee on Wednesday. As I said to her then, we have received the Chief Constable’s recommendations and are considering them across Government. She is right to say that we are stepping up no-deal planning, as the Prime Minister stated. It is also worth saying that the deal agreed by the Cabinet at Chequers is one that works for the whole United Kingdom. It is very important, from a Union point of view, that we have a deal with the European Union that ensures that our red lines for Northern Ireland of no hard border on the island of Ireland and no border on the Irish sea are adhered to.

[Ian Paisley (North Antrim) (DUP)]

Is the Secretary of State confirming effectively to the House that the financial shortfall identified by the Chief Constable will now be met by additional resources, as required by the Chief Constable when he met the Northern Ireland Affairs Committee?

[Karen Bradley]

The hon. Gentleman is also persistent in his questioning. As I said last Wednesday in front of the Select Committee, we have received the Chief Constable’s report and are looking at it.

The emergency powers under section 59 of the 1998 Act are intended to be used only in the absence of more orthodox legal authority. I do not consider those emergency powers to be appropriate for managing Northern Ireland finances for a second financial year.

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[Karen Bradley]

I assure the right hon. Gentleman that we examine all such points. If he wishes to write to me specifically on the instances he has learned about, I will be more than happy to have officials in my Department speak to those in the NICS to establish what has happened. We are very clear where the money needs to be spent. It was agreed in the confidence and supply arrangement, and we are taking the steps that we need to take to ensure the money is spent as intended.

I want to be very clear that this Bill is not legislating for the £410 million. That was approved by Parliament for release as part of the UK Supply and Appropriation (Main Estimates) (No.2) Bill, while this Bill gives the NICS the authority to allocate that funding. More detail on funding allocations is contained in the supporting Command Paper. Just to be clear, we are following on from the estimates process on which we voted in the Chamber last week. On Tuesday evening, we voted to make sure that the Northern Ireland block grant was properly allocated. Today, we are in effect carrying out the estimates process that would normally be done at Stormont. In the absence of Stormont, we are dealing with this through primary legislation here.

[Ian Paisley]

I appreciate what the Secretary of State is saying, and yes, by and large, that is exactly what is happening, but it is not quite as benign as that. The Secretary of State has personally signed off a change in the budget by which £100 million has been taken from capital spend to revenue spend. Civil servants are of course very delighted about that, because some of it will go towards redundancy packages for them, but that is not the point. The Secretary of State has taken the decision on advice, so why does she not take the other decisions that are necessary to make Northern Ireland function?

[Karen Bradley]

I said that the hon. Gentleman was persistent. The decision to allocate spending from the capital budget to the revenue budget was taken to make sure that the budget balanced. It was taken after consultation with all the main parties in Northern Ireland, which all understood that that decision was taken to ensure that the budget balanced and that additional revenue raising from the people of Northern Ireland was not required.

Let me turn to the second important issue to which I would like to draw the attention of the House. As well as placing all Northern Ireland Audit Office audits and value for money reports and the associated departmental responses in the Libraries of both Houses—to be accessible and visible to all interested Members and Committees—I will also write to the main Northern Ireland political parties to highlight the publication of the reports and encourage them to engage with the findings. This is as robust a process as is possible, but the best form of overall accountability and scrutiny of Northern Ireland public finances would of course be that undertaken by a fully functioning Executive and a sitting Assembly in Northern Ireland.

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[Tony Lloyd]

I am grateful to the Secretary of State, but there is a difficult question about the capacity of the Northern Ireland civil service to make decisions. The Court ruled in the case of a controversial planning decision that is no longer deemed to be legitimate unless there is a further appeal by whomsoever, but this goes way beyond that case, as Northern Ireland Members have said. We need certainty about how money can be spent, what budgetary headings in the Bill can be transformed into practical decisions and whether the civil service has the capacity to make those decisions.

This is not an abstract, theoretical game. It will be a day-to-day game with the possibility of judicial review taking place on any and every occasion. We need certainty. In the mini-budget in March, the Secretary of State talked about seeking legal advice on how the money can be spent, but we need early certainty on the public record so that civil servants know what their capacity is. Beyond civil servants, we need certainty so that the people of Northern Ireland know how their money can be spent, because difficult and time-sensitive issues are looming.

The hon. Member for Strangford (Jim Shannon) has mentioned the north-south connector on many occasions. The decision in principle has already been taken, so in one sense that ought to be a relatively easy decision, but providing the moneys to make the connector work requires decision making by individuals or a structure that cannot subsequently be challenged in the courts. That is enormously important.

I join the hon. Members for North Down (Lady Hermon) and for North Antrim and the right hon. Member for Belfast North (Nigel Dodds) in their challenge to the Secretary of State on the role of the PSNI. All other things being equal, our country will leave the European Union on 29 March. In her statement earlier, the Prime Minister said that a range of possibilities were being considered, including a no deal outcome. The PSNI Chief Constable has made it clear that that no deal outcome would require further staffing—a serious increase in numbers. I can assure the Secretary of State that that is time-sensitive because it is not possible, even between now and the end of March, to recruit and train 300 new members of the PSNI. It is important to recognise that. It is time-sensitive and, actually, the time is already long overdue.

[Ian Paisley]

I appreciate what the shadow Secretary of State has put on the record. It is important in terms of the lack of numbers. Under the Patten recommendation, police are down by 1,000, which needs to be rectified. He is right that it will take time. What worries me most—I hope that he agrees—is that, in the top team of the PSNI, six of the nine senior officers are currently on temporary contracts because the Policing Board is not functioning. That needs to be solved immediately for the good governance of policing in Northern Ireland.

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[Ian Paisley]

The point that the right hon. Gentleman is making is compounded by the fact that each month, the Police Service of Northern Ireland loses 50 officers for the very reason that he identified. For a force the size of the PSNI, that loss is hugely significant, because we are not getting in the experienced officers we need with the skills to deal with the issues. Does he agree with the point that the Chief Constable made to the Northern Ireland Affairs Committee earlier this month, which was that nationalists and nationalist leaders in Northern Ireland have to step up to the plate and encourage their community to join the police and to see it as a career for all the community?

[Sir Mike Penning]

My hon. Friend is absolutely correct. If we are going to have a community police force, and we created the PSNI for that reason—we abolished the RUC and created the PSNI—it has to be a force of all the people. For that reason, I completely agree that politicians on the nationalist side have to step up to the plate. Let us be honest about it: there are Catholics serving in the PSNI, but they are continually under threat.

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[Sammy Wilson (East Antrim) (DUP)]

I welcome the Bill tonight because it secures the money we voted to Departments to keep them running until the end of July and assures them that the full funding will be available until the end of the financial year.

We accept, however, that this is not a satisfactory arrangement. Issues such as budget allocations, how the money is spent and the monitoring of how it is spent all require detailed examination by politicians—that is how we get the accountability that should attach to any budget—but we can see from attendance tonight that there is no massive interest in the House. Indeed, there is a certain irony. For the past year, sitting in the Chamber, I have seen Member after Member stand up and say how concerned he or she is about the Brexit negotiations and the impact that Brexit would have on Northern Ireland, the impact that it would have on the Good Friday agreement, and the impact that it would have on community relations and the people of Northern Ireland. However, when it comes to the budget for the people of Northern Ireland, they are nowhere to be seen. I do not think that that irony is lost on the people of Northern Ireland. The pseudo-concern that we have heard from the Labour party during the Brexit debate represents little more than an opportunity to score political points and, conveniently, to use Northern Ireland as a means of arguing against the referendum result and the people who wanted to take us out of the European Union.

[Ian Paisley]

Labour Members who are so interested in whether there should be a hard or a soft border could have put on record their concern about the number of officers who have been recruited to the Northern Ireland border service and Her Majesty’s Revenue and Customs to deal with these issues, and how those officers have been recruited, but hark! I hear nothing from the Labour Benches.

[Sammy Wilson]

There are plenty of other aspects of the budget that could have been related to the concerns that Labour Members have been expressing. In that regard, Scottish National party Members are no different—they too have expressed great concerns.—and the same applies to the Liberal Democrats, who are nowhere to be seen. At least some Labour Members are present, but none of the rest has turned up.

This is not a satisfactory arrangement. I think I should use some of my speech to talk about how we got here, why we are here, and who is responsible for the fact that our budget is being dealt with in this way in the House of Commons.

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[Owen Smith]

My hon. Friend is absolutely right. That is one of the things that has apparently fallen into a black hole, because there has been no real explanation why the position has shifted from the situation under the previous Labour Government, when we had direct rule as a consequence of the collapse of politics in Northern Ireland. Under the current state of affairs, we effectively have direct rule, or at least direct rule-style decisions from this place, yet MPs and Assembly Members do not have the capacity to scrutinise decisions. That cannot be allowed to continue, but it has continued for over 18 months.

Over those 18 months, there has been extraordinary and spectacular inactivity on the Government’s part either to provide a greater degree of accountability or to try to bring about the restoration of the institutions in Northern Ireland. It seems as though pushing things down the road and kicking the can into the distance have been the Government’s preferred modus operandi, which is not good for the people of Northern Ireland or for governance across the whole UK.

[Ian Paisley]

I was always taught that the purpose of the study of history was to avoid repeating the mistakes of the past. One of the mistakes made in the 1950s and ’60s was that this place became disinterested in what was happening on the ground in Northern Ireland, and we know what happened then. If we do not learn from the past, we will, through the disinterest of this place, repeat what happened then.

[Owen Smith]

That is a good point well made, and it applies not only to Northern Ireland, although it is particularly important there. Post devolution, the different constituent parts of the United Kingdom are becoming strangers, and there is all too often insufficient understanding of, or interest in, the differences in policy and practice between the different parts, which is not good for our democracy. That is potentially not good for peace or for the prosperity of the people of Northern Ireland—people who have suffered more than most in our country.

There is another lesson of the past that we must learn. It is a more recent lesson from the previous Labour Government, and former Prime Minister Tony Blair deployed the phrase on many occasions. In Northern Ireland, we have to keep the bicycle moving forwards, otherwise it falls over. In recent months, the bicycle seems to be in serious danger of being left on its side on the roadside, because there is no sense of forward momentum in the peace process. There is no sense that the Government have a concerted plan to get things up and running.

We have repeatedly called on the Prime Minister to get more stuck into the talks in Northern Ireland. I think that she is planning to go there next week, and I know that there is a British-Irish intergovernmental conference coming up, but such things have been called for endlessly over the best part of two years, and this is too little, too late. We may well be reaching the point where something starts to go wrong, because the truth is that just as the gaps between the political parties are growing wider, so too are decisions being left unmade.

We have already heard about the need for health reform. I cannot remember how many years ago the Bengoa report came out, but we have seen no movement towards its implementation. My hon. Friend the Member for Rochdale (Tony Lloyd), the Opposition spokesman, mentioned some of the pressing matters that desperately need to be dealt with, such as the Hart inquiry into historical institutional abuse. There are people who suffered horrendously at the hands of others in institutions and who are desperate to see justice and compensation. All parties agree that that is their right, but there has been no movement on that. There has also been no movement on the issue of pensions for victims, but there is a significant degree of agreement across political parties and across the House about how to take things forward. What about the legacy issues—not just the legacy inquests, but how we deal with the legacy of the troubles? Again, there is significant agreement in this House and across Stormont on how that should be taken forward, but we are not seeing the fruits of that agreement.

The problem with all that is that we run the risk that the apathy in Northern Ireland that many people have talked about will harden into cynicism. On this side of the Irish sea, it hardens into long-standing disinterest. That cannot be allowed to happen. I say to the Minister, the Conservative Front-Bench team and, indeed, to my own Front-Bench team that one of the lessons of history we need to learn is that if we have what is in effect direct rule, we cannot afford to be, as the right hon. Member for East Antrim put it, squeamish about calling it direct rule.

Even those of us in this place who are devolutionists must accept that enough will be enough at some point. What will we do if something goes wrong in Northern Ireland? What if there is a problem with safeguarding in a school? What if there is a crisis in the health service in Northern Ireland? What if a problem such as we have seen in Derry/Londonderry over recent days and hours expands into something more problematic? Who will the people of Northern Ireland hold to account? Who will they turn to for answers? Who will we ask questions of, to satisfy ourselves that the right decisions are being taken? The truth is that the Minister cannot answer those questions, because David Stirling and the civil servants in Northern Ireland are the only people holding the baby and carrying the can. That is not fair to them, and it is not good governance.

Not only am I a devolutionist, but I also served as an adviser under the previous Labour Government in the period when we called a spade a spade and realised that, in the absence of the political talks delivering the restoration of the institutions, we needed direct rule and to call it direct rule. My direct challenge to the Minister is to tell us why the Government are so concerned about acknowledging the situation. I would understand it if he were to stand up and say, “We think that would make it much more difficult to bring about the institutions.” I would understand if he stood there and said, “We think it would deeply damage relations with the Government of the Republic.” However, I suspect that he is not prepared to accept either of those things.

I suspect that the Minister is not prepared to say that we are going to see, as a corollary of introducing direct rule, lots and lots of BIIGCs, because that will not please some Members. However, I think we had 25 BIIGCs when the Assembly was last in abeyance. That would be the corollary, and it would be absolutely the right thing to do to ensure that the co-guarantors of the Good Friday agreement—the UK Government and the Irish Republic’s Government—had a say in things. I do not understand why the Government are so loth to call a spade a spade, to acknowledge that we have direct rule by stealth and to get on with putting in place either direct rule or a plan to get us out of the twilight zone in which we currently reside. It is not good for governance; it is not good for the people of Northern Ireland; and, to put it plainly, it is not sustainable.

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[Ian Paisley (North Antrim) (DUP)]

At the outset, I wish to take a moment to pay tribute to the life of one of my constituents, Mr William Dunlop, who sadly perished on Saturday in a motorcycle race. He was an immensely talented athlete who had won more than 108 races during his short career as a motorcycle racer. He had achieved four podium finishes at the TT course on the Isle of Man and had won several races in various of Northern Ireland’s most exciting road races. He hails from Ballymoney and from the Dunlop family; his uncle Joey was a world-renowned motorcycle racer and his father Robert perished a few years ago in front of William’s very eyes at a motorcycle race in the constituency of East Londonderry.

William Dunlop was a gentleman. He was a young man who had a young partner and a child on the way —another bouncing baby to enjoy. Unfortunately, he perished so tragically at the Skerries road race in north Dublin on Saturday evening. It puts into perspective the extinction that lies at one end of motorcycle sport and the ecstasy at the other. Over the same weekend, a colleague of his from County Antrim, Johnny Rea, was successful and has now won, in effect, four world motorcycle championships—this is the largest record and probably will never be achieved again. I want to take this moment to pay tribute to William Dunlop and to his family, as constituents of mine, for the great way in which they have handled this set of tragic circumstances. I hope that Members will take a moment to reflect on that in the days ahead, as the funeral occurs in Northern Ireland.

Turning to the matter before us, it is not sustainable to continue on the road that we are on. Northern Ireland requires effective and good government. I understand the challenges: if we introduce direct rule, it will bring about unintended consequences. There will be things the Government will end up doing that we will not like and there will be things the Labour party will introduce, as amendments, that we will not like. Those unintended consequences are a reality check, saying to us that we must get on with the restoration of devolution, which we all want. Alternatively, in the absence of even talks to achieve that, the Secretary of State and her Northern Ireland team have a duty to get on with the delivery of good government, and that means ministerial decisions. They can call it anything they like. We are not going to be squeamish about what it is called, but, in effect, the Secretary of State needs to take direct ministerial rule into Northern Ireland and start effectively governing.

We are told every day by the Government and by many others that they are committed to “the Belfast agreement being implemented in full.” We hear in the Brexit negotiations, and on devolution and the settlement in Northern Ireland, that the Belfast agreement must be implemented in full. But the fact is that it has broken; it is not being implemented in full. As we so eloquently heard from my hon. Friend the Member for Belfast South (Emma Little Pengelly), one side has decided to break the Belfast agreement and single-handedly to stop the Northern Ireland Assembly, which is an integral part of that agreement, operating. If one part of it is not being implemented, the entire agreement is in jeopardy and we need to have ministerial decisions taken, and taken effectively. I call on the Secretary of State again to step up and make sure that these decisions are taken.

Some points have been made strongly tonight by my right hon. Friend the Member for East Antrim (Sammy Wilson) about Sinn Féin. Sinn Féin want all these things done in Northern Ireland, and their Members come to Westminster and they lobby on the Terraces, but they are not prepared to take their seats in here and argue their case. It reminds me of the poem from 1791:

“We’re bought and sold for English gold—

Such a parcel of rogues in a nation!”

Sinn Féin are acting in a roguish way. We have to face up to that, as do the public, and deal with that roguish element. We must almost embarrass them into taking on the role that they are elected for.

I have challenged the Secretary of State at the Northern Ireland Affairs Committee and again here tonight about the budget and how it is allocated. If she is able to reapportion £100 million from one section of the budget to another in order to make it balance its books, she is therefore able to take other decisions. I encourage her to do so, because those decisions are crucial for the good governance of Northern Ireland, which is one of her key priorities. We have mentioned issues to do with policing tonight, and I will not repeat them; suffice it to say that we need decisions taken immediately on policing.

On 15 May, our Northern Ireland Affairs Committee unanimously agreed a report about policing. Its members agreed the following:

“We recommend that the Secretary of State amends the Police (Northern Ireland) Act 2000 to ensure that the Policing Board can exercise its statutory functions now”.

That was in May! We need the Secretary of State to introduce this immediately and to ensure that the Policing Board becomes functional and is therefore allowed to deal with the budgetary pressures, the recruitment issues and all the key needs of the PSNI.

Our report, which was on “Devolution and democracy in Northern Ireland—dealing with the deficit”, reads as a catalogue of shame. We should put some of that catalogue on the record, because Members have talked tonight about where decisions ought to be taken. Our report strenuously lists those issues, Department by Department. It sets out the fact that the industrial strategy consultation was completed in April 2017 but there is no Executive in place to consider it. The report on the small business rates relief was completed in 2016 during a consultation exercise, yet it has not been published because there is no Minister to publish it. The consultation on the apprenticeship levy closed on 23 December 2016, but funding has not been redirected into skills training. That is around £80 million from last year that has not been directed into the proper training and skills development that is critical so that Northern Ireland can rebalance its economy, and that is because a Minister is required to take that decision.

The Licensing and Registration of Clubs (Amendment) Bill was left at the Committee stage when the stumps were pulled on the Northern Ireland Assembly. That issue needs a budgetary decision and a Minister to take that decision. On the minimum unit price of alcohol, again, a Northern Ireland Minister is required to take that decision and introduce something that everyone else in the United Kingdom is enjoying, which is proper controls on that issue.

Our draft tourism strategy, developed by Tourism Northern Ireland, was presented to the Department of the Economy. We need a Minister in place and a budget in place to implement that strategy. A proposal was made to cut tourism VAT specifically in Northern Ireland to deal with the heavy competition that we face from the Republic of Ireland. The UK Government launched the consultation, and the implementation should then be in the hands of the devolved Government. It has not been implemented in Northern Ireland.

The development of Kilkeel harbour is a massive infrastructure project, but the lack of a Minister has caused the plans for the harbour to be halted. Yet we are about to try to take advantage of Brexit and the opportunities it offers for our fishing fleet when we are an independent seafaring nation. That project has run into the sand until we have a Minister to allocate around £450,000 to take it to the next stage.

[Sir Jeffrey M. Donaldson]

I wrote recently to the Department of Agriculture, Environment and Rural Affairs about the food processing grant scheme in Northern Ireland. The scheme has been of significant benefit to food producers in other parts of the United Kingdom, but has not yet been implemented in Northern Ireland. The permanent secretary and his team responded by saying:

“At this point in time, DAERA has no plans to launch the proposed scheme in the absence of a Minister. ”

That is yet another example of our biggest industry in Northern Ireland being disadvantaged by there being no decisions as a result of Sinn Féin’s boycott of Stormont.

[Ian Paisley]

My right hon. Friend makes an important point. Our key industry is agri-food products. We produce the best, tastiest and most traceable food on these islands. It is a multibillion-pound industry. Because it is traceable, it offers our kingdom food security. The issue that my right hon. Friend has put his finger on is explained clearly in the budget statement that we got from the Minister. The Northern Ireland budget for the Department of Agriculture, Environment and Rural Affairs is almost going to double this year, from £39 million in 2017-18 to £77 million in 2018-19, but none of the critical decisions, one of which was highlighted by my right hon. Friend, can actually be processed. Money is set aside for agri-food development, but those decisions cannot be processed because there is no Minister in place to take the key decisions.

This is a catalogue of shame and there is no one here to cry about it. A few weeks ago, we were hauled over the coals by certain Members for social policy issues, yet here we are discussing issues of poverty, employment and people’s livelihoods, and I do not hear a murmur, yet it is a catalogue of shame.

I shall go on, because the catalogue is atrocious. The York Street interchange was a key issue that we put on the confidence and supply budget, and we are setting aside around £400 million to £500 million to develop it. That project is paused owing to a legal challenge. A substantial scheme that would usually have ministerial accountability and then be allowed to proceed cannot actually go ahead. That is critical, because it shows that a paralysis is developing in the Departments. We are going to end up with government by judicial review. In fact, we are going to have governance stopped by the people running the courts. I respect judges and I respect lawyers, but they are not elected to stop the process of government. The people have elected Members to this House and they expect the Government in this House to take these key decisions.

The shadow Secretary of State mentioned the north-south interconnector. Planning permission was granted following an independent report prepared by the Planning Appeals Commission. That decision was made by the civil service in the absence of a Minister because it was in the public interest, but it has not been implemented because it needs the next step, in which the Minister actually signs off the decision. That project has now been paused. Many Members from various parties have talked about maintenance projects and capital spending projects for schools and hospitals. The report says, time after time, of a host of capital projects, that no Minister is able to sign the project off. It says:

“In absence of Minister, zero-based approach taken”

and that no capital funding will be assumed for capital projects, even the priority ones.

The A5 project is a huge road network scheme in the west of the Province. The project has been paused owing to a legal challenge, and a substantial scheme that would usually have ministerial accountability is not going to take place until a Minister is in place. The next phase of the school enhancement programme for the next four years is delayed because there is no Minister. This is what the civil servants are telling us. Ten school building schemes are currently at the design or feasibility stage, but they have all been paused until a Minister is in place to take the next decision. This cannot go on. This is a catalogue of shame.

I notice that the chairman of the Select Committee, the hon. Member for South West Wiltshire (Dr Murrison), is present; since he led us through the process and we published the report on 15 May, that section is now twice as thick, with other decisions backing up. Last month, the chief of police brought one of those decisions to us, along with all the issues related to policing. I asked why we have not had the legal aid improvements or changes that are being enjoyed by other citizens throughout the United Kingdom. Once again, those matters were consulted on in Northern Ireland and a report has been brought forward, but it cannot be signed off and implemented because we do not have a Minister to take the decision.

On community pharmacies and setting the tariff for drugs in Northern Ireland, I know that the Secretary of State would solve that issue for us at the drop of a hat, and she could solve it for us, but it is not going to be done because there is no Minister willing to step up to the plate and make the decisions. I could take hours going through the report and putting these matters on the record. I call on the Government to get on with it and start governing.