Oral Answers to Questions

Ivan Lewis Excerpts

Wednesday 11th March 2015 Commons Chamber

[Mrs Villiers]

Let me also take the opportunity to associate myself with the comments of the right hon. Member for Lagan Valley (Mr Donaldson) and my hon. Friend the Under-Secretary of State about the distinguished record of Lord Molyneaux. He was indeed a very distinguished parliamentarian over many years, and this is a sad loss to Northern Ireland.

The Chancellor is well aware of the campaign for the tax change that the hon. Lady would like to see. Tax reductions are difficult because the imperative must be repairing the public finances, but the Chancellor has relieved tax burdens on business by reducing corporation tax, introducing an employment allowance and, of course, helping people into work.

[Mr Ivan Lewis (Bury South) (Lab)]

May I associate my party with the comments that have been made about Lord Molyneaux?

As the Secretary of State has said, economic progress and political stability in Northern Ireland are inextricably linked. Does she agree that the unravelling of the Stormont House agreement would be an unmitigated disaster for economic and political confidence in Northern Ireland, and that now is the time for responsible leadership which accepts the need for a reformed welfare system that mitigates the impact of cuts on the most vulnerable while also being affordable and sustainable?

[Mrs Villiers]

I very much agree with the hon. Gentleman. Now is the time for level-headed consideration of how we can resolve this matter. In the autumn, Northern Ireland faced a budget crisis that was so serious that the very sustainability and future credibility of the institutions was at stake, and we were looking over a cliff at the possibility that devolution would collapse altogether. Returning to that position would be a huge step backward. The Stormont House agreement was a big step forward, and it is vital for all parties to work to ensure that it is implemented fully and fairly.

[Mr Lewis]

Does the Secretary of State intend to convene urgent all-party talks in an effort to put the Welfare Reform Bill back on track? By what date must the Bill be passed, if the Executive rather than civil servants are to set next year’s budget in Northern Ireland?

[Mrs Villiers]

As I said earlier to the right hon. Member for Belfast North (Mr Dodds), I expect to meet the five party leaders in the coming days. I hope to do so tomorrow, but that will depend on when the First and Deputy First Minister return from New York.

It is vital for progress to be made on welfare reform. That is a key part of the Stormont Castle and the Stormont House agreements. I will press for such progress, not least because without it the Northern Ireland Executive’s budget will become unsustainable, which will hugely impair its ability to function effectively.