Northern Ireland (Executive Formation) Bill

Ivan Lewis Excerpts

2nd reading: House of Commons
Monday 8th July 2019 Commons Chamber

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

I have spoken only on rare occasions about Northern Ireland since ceasing to be shadow Secretary of State in 2015. That is not because I do not care or feel indifferent to a place and people that I grew to have a great deal of affection for. It is partially because I believe that it is right to allow one’s successors the space to shape their positions, but if I am honest, it is also because of my sheer exasperation with the failure of Northern Ireland’s politicians to show leadership.

The silent majority of people across the sectarian divide in Northern Ireland have had enough of the blame game and name-calling. They want their politicians to do the job that they are elected to do and are paid for: to reconstitute the Executive and the Assembly. That would be the responsible thing for politicians to do in any democracy, but in a society emerging from conflict, the stakes are perpetually higher. In a vacuum, the extremists, rejectionists and terrorists exploit instability at every opportunity. I did not use the term “post-conflict”, because that is not appropriate in a society that is not only still nursing the traumatic wounds of its past, but held back by a decade of austerity.

So why are we here again seeking neither to reconstitute the Executive and Assembly nor to impose direct rule? Frankly, it is because neither of the two largest parties are willing to make the compromises that are so essential in any power-sharing system—a commitment to brave and uncomfortable compromises, which existed not so long ago on all sides, to deliver an end to bloody conflict and create a peace process that, for all its imperfections, has stood the test of time.

Brexit is inevitably a major obstacle to progress when Sinn Féin and the DUP hold such polar opposite views. As an ardent campaigner to remain, I believe that the result of the referendum must be respected and implemented. I also believe that leaving with no deal would be a massive risk to the economy of the United Kingdom, but I believe, too, that—as some hon. Members have said—the south of Ireland would be the biggest loser from such an outcome. I say gently to some of my friends in the DUP that the people of Northern Ireland in no way gave them a mandate to become fully paid-up members of the European Research Group.

If we are to see progress, it is also important to recognise that other issues that pre-date Brexit are salient to the current stalemate. Brexit is not the only reason why we have this stalemate. As hon. Members have said, and I know this from first-hand experience, Sinn Féin is unwilling to make any of the difficult budgetary decisions required of all political leaders in any society dealing with finite resources. It wants to be purist and free to pursue its political ambitions in the south. This means opposing all cuts. If it was part of the leadership in Northern Ireland, it would have to make difficult choices. This could be used against it in the south. Nobody should underestimate the power of that reason in terms of Sinn Féin’s current position.

I am sad to say that the DUP, despite its domination of the Unionist vote, is unwilling to make compromises on some issues that would undoubtedly upset its base.

[Gavin Robinson (Belfast East) (DUP)]

I know that when the hon. Gentleman was the shadow Secretary of State for Northern Ireland, he earnestly engaged with and sincerely considered the views of all parties in Northern Ireland, and he dealt with us all very honourably. However, if he has been listening to the course of this debate, does he not recognise that in August 2017, we did compromise? We said then, “Set up the institutions and we will legislate for the Irish language,” yet it was rebuffed in 26 minutes. I am disappointed to hear that he has not factored that into his speech, but he cannot claim that we were not prepared to compromise, nor are we still today.

[Mr Lewis]

I thank the hon. Gentleman, for whom I have a great deal of respect, for his very kind remarks about my period as shadow Secretary of State. Of course, I accept that during this long journey of stalemate, there has been a willingness to make some compromises, but it really does not ring true to say that the reason that we are in this position today is exclusively the responsibility of one party or the other. That is simply factually untrue. If he allows me to continue with my speech, I will cite some other reasons why we have been unable to make progress.

This is a crucial message to the DUP: good leadership may be the ability to motivate core supporters, but there is a difference between good and great leadership. Great leadership is a willingness to sometimes say difficult things to one’s own supporters. That is the case throughout history, and in fact, the DUP and other political parties in Northern Ireland in the past have been willing to do so.

[Jim Shannon]

The hon. Gentleman will remember very well his visit to my constituency and particularly to the community groups in Newtownards. He will also recall that they were very much opposed to the Irish language becoming a political tool in the process. When it comes to reflecting that public opinion in Strangford and elsewhere, I do so every day because that is what my constituents tell me. We should not ignore our constituents or try to push them in a way that they do not want to go.

[Mr Lewis]

I have massive respect for the hon. Gentleman —we agree on so many things—but there are occasions when politicians and leaders need to say to their followers and their base, “Actually, we need to do things differently in the pursuit of a bigger cause.” I accept that if the gap grows to such an extent between a politician and the people who support them, it will inevitably lead to the demise of that politician, so it is a difficult calibration to achieve in any dynamic in terms of political relationships. However, all the great changes that have been made through political history have required, at one time or another, politicians to say difficult things to their supporters, particularly in cases of conflict, war, terrorism and a lack of stability. I do not think that the Irish language Act even featured in the conversations I had when I visited the hon. Gentleman’s constituency, because, as others have said, that is not the burning issue of the day for any section of the population in Northern Ireland, to be frank. The issues are jobs, education, health or opportunities. It is wrong to say that the Irish language Act is the be-all and end-all for the nationalist community in Northern Ireland, let alone the other community.

[Jim Shannon]

We have be honest about the position in Northern Ireland and look at the facts. Nationalist people and nationalist parties do want the Irish language Act. The Unionist people we represent do not see it as the burning issue. The hon. Gentleman is right: health, education, roads and jobs are the key issues, but the nationalist parties see that as their key issue and their No. 1 priority.

[Mr Lewis]

I do not personally believe that that is a burning issue compared with other issues in the nationalist community either, if we are honest about the discussions that we have with them. I was not going to mention this in my speech, but I will say it to the hon. Gentleman: when I was the shadow Secretary of State, I was very proud to have commissioned the Heenan-Anderson commission. Deirdre Heenan and Colin Anderson did a serious piece of work on tackling social injustice and inequality in Northern Ireland—the breeding ground of sectarianism and division. If Northern Ireland does not tackle the lack of social justice and the lack of equality, it will be the breeding ground for the alienated and disenfranchised younger generation. This was not a party political or ideological document. It is sad that no political party has seized on that document—which did not just identify the scale of the problem, but came up with some very practical, tangible solutions—and sought to engage with Deirdre Heenan, Colin Anderson and all the stakeholders in business and civil society who participated in that process to see whether some of its recommendations can be implemented.

Let me move on with my speech—I was recounting some of the factors that have caused the current stalemate. One that I do not think is mentioned often enough is the fact that the UK and Irish Governments have struggled to fulfil their honest broker role since 2010. Tory-led Governments in the UK have needed DUP support to govern, informally in the coalition period and subsequently openly in the form of a confidence and supply arrangement. This has had an impact not just on Brexit but on the willingness of the Westminster Government to apply any serious pressure on the DUP to compromise.

By the way, this is a very important point: I do not condemn the Government or the DUP for the relationship that they have developed. How could I, because this is precisely the relationship that the Labour party would have sought with the DUP had the right hon. Member for Doncaster North (Edward Miliband) emerged as the leader of the largest party in the 2015 general election? I know that better than anybody else because I was leading the work that would have made that possible. It is therefore somewhat hypocritical of Opposition Members when they criticise either the Government or the DUP for the nature of their relationship. Let us be clear about history: in 2015, the Labour party would have done exactly the same had the political conditions existed.

[Ian Paisley]

I thank the hon. Gentleman for his candour on the secondary point. Any party wanting to be in government would try to make such arrangements. We have to be fair to the Government though. They have not tried to use their position to get gains out of our support for the confidence and supply arrangement. In fact, it was steadfastly opposed—there has at times been a brick wall between our party and the Secretary of State and the Northern Ireland Office on issues that we wish we could have influence over. It is only fair and proper that that be on the record. The Secretary of State has kept herself completely away from those arrangements.

--- Later in debate ---

[Mr Lewis]

To my mind, it is extraordinary that the Prime Minister failed to avoid alienating the DUP in the position she adopted on Brexit. I would have thought it would be her top priority in the discussions. What clearly happened was a trust issue as much as a substance issue, in that things were said in private about the Government’s position on Brexit and the opposite in public.

On the specific issue the hon. Gentleman raised, I am sorry but I do not withdraw my contention that since 2010 the fact that the Government have been dependent on the DUP to govern, unofficially between 2010 and 2015 and officially since then, has understandably made that Government, at a prime ministerial level and possibly at a Secretary of State level, unwilling to exercise the kind of pressure for compromise that was exercised in the past. That is just a statement of fact. The progress in Northern Ireland was largely a consequence of the honest broker role that the Government in the south and the Government in Westminster played during that period, and the change in that dynamic here has undoubtedly had an impact.

A change in dynamic has made a difference in the south as well. In the south, Sinn Féin is now a serious political challenger to the two leading parties. This inevitably changes the nature of the relationship and inhibits the trust between the Government in the south and Sinn Féin that has been so important to progress in the past. It is not credible to deny that those massive changes in political dynamic have had an impact on the ability to get the parties to compromise.

[David Simpson]

The hon. Gentleman has mentioned Sinn Féin. Would he accept that Sinn Féin’s results at the last election in the Republic were nothing short of disastrous?

[Mr Lewis]

I have enough problems expressing opinions on the state of politics in the UK without intruding on private grief in the south of Ireland. I am not really qualified to judge. I would say this to the hon. Gentleman though. There is no doubt that a massive factor in Sinn Féin’s unwillingness to participate in government in Northern Ireland is its unwillingness to make tough and difficult decisions because in the south of Ireland it wants to give the impression that such decisions are not required. If it participated in government in the north of Ireland, it would have to be part of making such difficult decisions.

[Maria Caulfield]

The hon. Gentleman is making some excellent points. Does he agree that with the prospect of a general election looming in southern Ireland, Sinn Féin will not get back round the Assembly table until after that election, because it would affect its electoral chances? We are making concessions for it here and holding out hope of it getting back round the table, but the southern Ireland scenario is affecting its behaviour.

[Mr Lewis]

The hon. Lady is probably absolutely right. It is realpolitik. If Sinn Féin is consistent in how it has behaved over several years now, it will not make any move to help reconstitute the Executive and the Assembly until the election in the south of Ireland is done and dusted. The hon. Lady makes a fair point.

I want to raise a final factor that I think has changed the dynamic. It will be uncomfortable for some, and some will not agree, but it is a factor that should not be underestimated. I had the benefit of working with some of the individuals concerned. Peter Robinson and Martin McGuinness, however people might have disagreed with them, in their roles as First and Deputy First Ministers were leaders of calibre and pragmatism. I do not believe that such leadership exists at the present time.

I now want to turn to issues that are inevitably divisive and that other Members have touched upon.

[Gavin Robinson]

Unlike the rest of your speech!

[Mr Lewis]

They cannot be put on hold forever. Equal marriage and abortion generate strong feelings in all societies, but this is especially the case where religion has played such a central role in a sectarian divide. I do not support those in the House who want to use the current political stalemate to impose solutions from Westminster, but courageous leadership from the Government would mean using this period to allow the people of Northern Ireland to make their voices heard on these issues. The Government should bring forward legislation to hold one referendum covering abortion and equal marriage, and they should be consistent. As with Brexit, they should commit to introducing the necessary legislation if the people of Northern Ireland chose to vote for change.

I understand those who argue that these issues are about fundamental human rights and therefore should not be subject to a referendum, and I also understand why people may be a little cautious about referendums on anything in the present climate, but there is currently no other credible way forward or one that can achieve a solution in the foreseeable future on these issues, which are so divisive. I believe in universal human rights, including the right to religious freedom, but I also believe—this is very important—that societies scarred by conflict require very delicate handling. Wading into these issues as though Northern Ireland is simply like anywhere else misses an important point about societies emerging from conflict.

[Conor McGinn]

Sure, what would I know about it?

[Mr Lewis]

The hon. Gentleman is entitled to his position. Other people who know as much as he does have an entirely different opinion.

[Conor McGinn]

I would make two points. First, the hon. Gentleman’s constituents in Bury and mine in St Helens who are gay did not have to win a referendum to be able to marry the person they love. Secondly, I gave a lot of thought to my amendment on same-sex marriage and to the sensitivities in Northern Ireland. I do not claim to be an expert in any way, shape or form, but I have considered the matter very carefully.

[Mr Lewis]

I do not dispute the fact that the hon. Gentleman, in every intervention he has made on Northern Ireland over a very long period—it is his home, not mine—has sought to be sensitive. A referendum is not the ideal solution, but to those who believe in gay marriage and believe that the rules on abortion need to be changed and brought into line with those in the rest of the UK, I would say that that will not be achieved by these amendments, given the parliamentary arithmetic. My solution provides an opportunity to achieve a breakthrough that cannot be achieved otherwise, given this perpetual debate and stalemate around the Executive and Assembly and given the parliamentary maths.

[Sir John Hayes (South Holland and The Deepings) (Con)]

I do not necessarily agree with the hon. Gentleman’s position, but in his defence a referendum would at least refer the issue back to the people of Northern Ireland. It would be perceived as immensely arrogant were the House to dictate to the people of Northern Ireland on subjects that we have already acknowledged across the House are extremely sensitive.

[Mr Lewis]

I entirely agree with the right hon. Gentleman. This should constitutionally be a matter for the people of Northern Ireland. We should not disregard the history of Northern Ireland or the nature of the sensitivities and the fragility that prevail. Too many people refer to Northern Ireland as a post-conflict society. That means ticking boxes saying, “It’s resolved, it’s all sorted, Northern Ireland has moved on.” Anybody who lives in Northern Ireland or cares about it knows that that is not the case. The hon. Member for St Helens North (Conor McGinn) understands that better than anyone. When we consider these issues, we have to take account of those realities.

I understand that my solution will not be supported by many. Campaigners will say, “We believe in universal human rights, and anything other than that is a dilution of our principles.” However, in the current climate, given the parliamentary maths and the stalemate over the Assembly and the Executive, there will no gay marriage or changes in the abortion law in Northern Ireland. That is a fact. We can table as many amendments as we want in this place, but that is the reality, as is the position of the current Government. I therefore suggest that the Government take a brave and courageous step, and, in respect of these sensitive issues, give serious consideration to the option of a referendum. As part of that, they would have to commit themselves to legislation to enact the outcome of the referendum, if it required legislative change.

I will support the Government tonight because I believe this to be the least worst solution, but there needs to be a wake-up call for the leading parties in Northern Ireland. They think that the regrettable failure of leadership can go on for ever because they dominate the vote in their respective communities—that is the political reality of Northern Ireland—but around the world, the certainties of elites and establishments are being shattered. We are seeing Brexit in our own country, and we saw Donald Trump defeat Hillary Clinton. Those are two examples of the crumbling of elites and establishments who thought that they were in the ascendancy.

If the current leaders continue to fail in their duty to run Northern Ireland, they may wake up one morning to find that the silent majority of Unionists and nationalists has been raised in support of credible alternatives. That may be hard to believe, but never say never in the context of the current turbulence around the world. Northern Ireland should and can have a great future, but its people are being let down by its leaders. Victims of violence and institutional abuse are being given neither justice nor closure, and too many young people are being left behind because austerity means that too many of the promises of the peace process have not been delivered.

Let me point out to the Secretary of State that as a consequence of austerity, the investment that Northern Ireland should have had following the peace process has not been delivered to the level at which it should have been delivered, despite some of the deals that have been done with, specifically, the Democratic Unionist party. Overall, the people running Northern Ireland have not received the peace dividend that they were promised because of austerity, and that needs to be taken into account in future budgetary decisions about Northern Ireland.

It is sad that politics is sharpening the sectarian divide when it should be healing and weakening the divides of the past. The silent majority in Northern Ireland deserve better. It is time that politicians on all sides did their duty, and put the people of Northern Ireland first.

Northern Ireland

Ivan Lewis Excerpts

Tuesday 20th February 2018 Commons Chamber

[Karen Bradley]

I thank the Chair of the Northern Ireland Affairs Committee. As I said in my statement, I am now working to ensure that we get certainty for civil servants in Northern Ireland—those dedicated public servants—and I will return to the House when I have further information.

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

The Secretary of State was absolutely right to say that she was not willing to conduct a running commentary on the talks, but now that they have collapsed once again, should she not publish the basis on which the talks failed yet again? The people of Northern Ireland have a right to know the areas of difference and what still needs to be resolved.

[Karen Bradley]

As I explained in my response to the shadow Secretary of State, I was not present at the discussions held between the two parties. I facilitated them, but I was not present during them. It would therefore be inappropriate for me to speculate on exactly where the parties reached in discussing their concerns. It is a matter of public record, however, that I have said that the concerns related to the very difficult issues of language and culture and the sustainability of the Executive.

Northern Ireland: Political Developments

Ivan Lewis Excerpts

Tuesday 28th March 2017 Commons Chamber

[James Brokenshire]

I would point to the fact that in the last Budget the Chancellor announced an extra £120 million for Northern Ireland’s priorities, and obviously we will want to see an Executive in place to be able to use that money effectively.

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

Does the Secretary of State agree that the people of Northern Ireland deserve better from their political leaders? The institutions have teetered on the brink for years, and now they have collapsed. The formula to prevent that from happening was clear: it was for the Prime Minister of the United Kingdom, the Taoiseach and representatives of the United States Administration to work hand in glove with Northern Ireland’s politicians to prevent the collapse of these institutions. Why does the Secretary of State not understand that he alone does not have the necessary authority to resolve these issues?

[James Brokenshire]

I simply do not accept the hon. Gentleman’s analysis. Again, I underline the issues that are at stake in relation to the parties and the devolved elements. I can assure him of the seriousness and significance that we attach to the position we now find ourselves in, with the whole issue of getting devolved government back on its feet and delivering for the people of Northern Ireland—all the things that so many have mentioned in this Chamber this afternoon about the future and what that means for real people and for public services. It is therefore with renewed intent that we approach the short period ahead in order to get the consensus and build the bridges that need to be built to get a positive outcome. That is the resolve that this Government have shown and will continue to show to deliver for Northern Ireland.

Northern Ireland Assembly Election

Ivan Lewis Excerpts

Tuesday 17th January 2017 Commons Chamber

[James Brokenshire]

I am sure that the issues around the election will be keenly and hotly contested. From all my experience of the press in Northern Ireland, it is fair, free and open, with wide debates contained within it. The Government certainly see those building blocks in the freedom of the press and, indeed, in the strength of our judiciary and legal processes, and we want to see that those pillars of our democracy are upheld.

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

In truth, Northern Ireland has lurched from one political crisis to another in recent years. Is it not time that the Government urgently reviewed the constitutional arrangements covering power sharing, including issues such as the title of First and Deputy First Minister and a whole range of other issues? Is that not how the Government could add value in terms of long-term stability?

[James Brokenshire]

We need to be very careful about the approach we take at the moment. We are now embarking on an election and, as I said, I do not want to prejudge the outcome of that election or, indeed, the discussions that take place during this period and through and beyond the short window of time that we have after the election period. We will do all we can as the UK Government, and we hold a primary responsibility to provide political stability within Northern Ireland. Clearly, the parties will need to discuss things through an open dialogue that I hope brings people back together, but at this stage, in seeking to open and widen the debate, we need to be very focused on the task at hand in bringing people back together again. Yes, the UK Government will play their part in supporting the Belfast agreement and its successors, bringing an element of stability and getting devolved government back in Northern Ireland, which is what we all want to see.

Northern Ireland: Political Developments

Ivan Lewis Excerpts

Tuesday 10th January 2017 Commons Chamber

[James Brokenshire]

I am grateful to my hon. Friend for his point. I am absolutely clear as to the huge contribution that our armed forces and the Royal Ulster Constabulary made in seeing the gains within Northern Ireland over recent years. He makes a point about some of the ways in which the system operates at the moment. There is a need for greater proportionality and balance within the system, which is precisely what the Stormont House agreement and the Stormont House bodies will provide. Notwithstanding current events, I remain committed to taking that forward, leading to a public phase in relation to that work. I judge that to be the right next step.

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

Of course there has to be an independent, transparent investigation into the failings of RHI, but is this not a symptom of a wider problem: a breakdown of mutual trust and respect between the majority parties in Northern Ireland? Leaders do not have to be friends, but given the nature of the constitutional arrangements in Northern Ireland there has to be mutual respect and trust. Is this situation not purely a symptom of a breakdown of that? Do we not need to see leaders who are committed to putting personal differences aside in the interests of the institutions?

[James Brokenshire]

The hon. Gentleman may have noted that I said in my statement that, obviously, the focus has been on RHI, but other issues have come through from this. Indeed, the letter that Mr McGuinness published yesterday highlighted a number of those themes. That is why I make the point at this time about parties coming together and working together in the best interests of Northern Ireland, given so much opportunity that resides there. There needs to be that focus on the big issues at hand and the best interests of Northern Ireland.

Stormont

Ivan Lewis Excerpts

Monday 12th October 2015 Commons Chamber

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

I congratulate the hon. Member for South Antrim (Danny Kinahan) and the Chair of the Northern Ireland Committee, the hon. Member for Tewkesbury (Mr Robertson), on securing the debate. This is my first speech as a Back Bencher for more than 14 years, so I hope that hon. Members will forgive me if I am a little rusty. I never sought the role of shadow Secretary of State, but it turned out to be an immense privilege and left me with a deep affection for Northern Ireland. That affection is built on the straight talking and warmth encapsulated as “the craic” among so many people I met.

I feel a great sense of pride but also responsibility as a consequence of my party’s legacy in helping to bring peace to Northern Ireland. Whatever the collective political failures of recent years, it is important to recognise that many of Northern Ireland’s leading politicians would hold their own intellectually and administratively at the highest levels in any democracy.

I want to take this opportunity to welcome back my friend and colleague, my hon. Friend the Member for Gedling (Vernon Coaker)—who is not in his place at the moment—as shadow Secretary of State. He is widely trusted and respected in Northern Ireland. I also want to take this opportunity to thank my hon. Friend the Member for Ealing North (Stephen Pound) for his tremendous support during my period in the role. I strongly support both of them in maintaining Labour’s support for a bipartisan approach. The principle of consent must apply to any change to Northern Ireland’s status within the UK. It is also important that my party should maintain equidistance between Northern Ireland’s mainstream parties.

So, what are the causes of the culture of crisis that has led to a cycle of despair and, in turn, to public disillusionment with the political system? There are a number of factors involved. Three successive years of elections have meant that politicians are reluctant to make compromises that might affect their core support. Sinn Féin’s overriding political priority has been to make progress in the south and to do nothing in the north to undermine its anti-cuts, anti-austerity position. Also, post-Ian Paisley senior, the Democratic Unionist party has been wary of being seen to work in an authentic partnership with Sinn Féin. An accommodation is not a partnership. Furthermore, too many people are still trapped in worklessness and inter-generational poverty and not seeing their lives getting better via a peace dividend.

What might the solutions be? The Stormont House and Stormont Castle agreements must form the basis of a way forward. There has to be a viable budget that takes account of agreement on some measures to mitigate the impact of welfare changes, including non- implementation of the pernicious bedroom tax, but Sinn Féin has to accept that such a viable budget is a reality facing all democratic Governments. This will require tough choices including changes to the welfare system. The only case I can see for further additional UK Government finance is a new fund to support the development of a new universal mental health service to tackle the inter-generational trauma unique to Northern Ireland. There also has to be a plan, with measurable timelines, to oversee the disbanding of all paramilitary structures. Such structures should be anathema in today’s Northern Ireland. The structures to deal with the past need to be agreed as soon as possible, and the Government should honour the Good Friday agreement commitment to a public inquiry into the Finucane murder. This can and should be time-limited, with a finite budget.

An incoming 2016 Executive, and, where appropriate, the UK Government, should commit to the implementation of the excellent Heenan-Anderson Commission recommendations to systematically tackle worklessness and inter-generational poverty. Alongside that, we need an economic plan that includes a city deal, and investment in skills and infrastructure, essential if the devolution of corporation tax is to make a real difference. It is right that there should be the establishment of an official recognised Opposition, preferably from 2016 onwards, but we also need a new movement binding together civil society, business, trades unions and the Church to apply pressure to politicians and to create the space and permission for politicians with courage and vision.

Seventeen years on from the end of the troubles Northern Ireland is a much better place, but it is still a society emerging from conflict, coping with the wounds of its past. In truth, that means it will take at least a generation, perhaps two, to move from a cold to a lukewarm peace and then to a normal society. What is needed more than ever is courageous political leadership, coupled with a shared and ambitious vision for prosperity and social justice.

[Lady Hermon]

I just want to pay tribute to the hon. Gentleman, who worked extremely hard as the shadow Northern Ireland spokesman for a considerable time. I am curious to know whether his experience and expertise on Northern Ireland have at any stage been asked for by the current leader of his party. I think his plea tonight was almost for his party leader to read what he was saying about Northern Ireland. Has his party leader ever sought his view?

[Mr Lewis]

I thank the hon. Lady for her generous comments, and I thank all Northern Ireland politicians represented in this House for the tremendous support they gave me during the time I did that job. They do not get enough credit for the many constructive and positive things they do to try to move Northern Ireland forward. In direct answer to her question, I can say that in the context of the reshuffle I did have a brief conversation with the leader of my party about the challenges facing Northern Ireland. When I meet the leader of the Labour party in the next few weeks on a one-to-one basis I will certainly be raising a number of issues with him, one of which will be my analysis and my view of the appropriate position that my party needs to take if we are to continue to adopt, along with the Government, a constructive bipartisan approach to moving Northern Ireland forward. There are many things we could do that may undermine that, and we must resist the temptation to change our long-established positions, which have, despite some disagreements, on the whole earned the respect of all of Northern Ireland’s political parties. I am delighted that my hon. Friend the Member for Ealing North, the shadow Minister of State, has insisted that we stay true to those positions. On that note, I will bring my remarks to a conclusion.

Oral Answers to Questions

Ivan Lewis Excerpts

Wednesday 24th June 2015 Commons Chamber

[Mrs Villiers]

We are active participants for peace and progress. That is why we are fully engaged on our side of the Stormont House agreement and in encouraging the parties to live up to theirs. Obviously, a crucial part of the agreement is progress on dealing with the legacy of the past. That is another reason why I appeal to the hon. Gentleman and his party colleagues to unblock the questions about welfare so that we can press ahead with those institutions that his party championed during the Stormont House talks.

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

Can the Secretary of State confirm that in the event of the Stormont House and Stormont Castle agreements being implemented, the Northern Ireland Executive will operate a far more compassionate and generous benefit system than is available in the rest of the United Kingdom?

[Mrs Villiers]

I believe that the welfare reforms introduced by this Government are the best ones for the whole of the United Kingdom. I believe it is crucial to replace a system that has failed and trapped people in poverty with one that rewards work and caps benefits. I believe that the top-ups agreed by the Northern Ireland parties at the Stormont Castle agreement produce a useful and helpful addition to match specific local circumstances.

[Mr Lewis]

Although we disagree with the Government on the bedroom tax and on their refusal to come clean on future benefit cuts, the Secretary of State is right to insist that these agreements are honoured without extra money from the Treasury. In the past, Northern Ireland’s leaders have earned great respect for making tough choices for peace. Does she agree that all parties must now accept that an affordable and sustainable welfare system is vital to securing financial and political stability in Northern Ireland?

[Mrs Villiers]

I thank the hon. Gentleman for those comments. It is crucial for the Northern Ireland Executive to find a way to live within their means. They are not being asked to do anything that Governments across the developed world have not had to grapple with over the last five years. Their block grant has gone up a little in cash terms and come down only by about 1% per year in real terms. It is deliverable; it is possible to do this. The Stormont House agreement delivers a good deal for Northern Ireland, including on welfare.

Oral Answers to Questions

Ivan Lewis Excerpts

Wednesday 28th January 2015 Commons Chamber

[Mrs Villiers]

As I said, one way to do that would be to take burdens off the PSNI’s shoulders by implementing the NCA. Continued focus on trying to resolve parading disputes is also important, given their potential impact on police resources. It is crucial that we get the new institutions on the past up and running as soon as possible to provide that relief to PSNI funding, and, as we discussed in the House yesterday, we need to consider whether any of the £150 million for dealing with the past can be deployed prior to the establishment of the HIU to help on these matters for the PSNI.

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

The Conservative party seems to want to introduce new protocols to the House, believing everything in The Sun and demanding that the Labour party take responsibility for problems that are clearly the responsibility of the Government.

Yesterday, the Secretary of State was unable to tell us how long it would take the PSNI to review the case of all those covered by the on-the-runs scheme. When will she be able to answer that question? In lieu of the creation of a new architecture to deal with the past, what will the PSNI be doing in the meantime to deal with some of the unresolved murders?

[Mrs Villiers]

How to deal with such cases, the priority given to them and the length of time it will take are matters for the PSNI, but it has said publicly that it will take some years to progress through the cases under Operation Redfield. As I told the House yesterday, it is important for us to consider whether any of the £150 million that is to be devoted to matters relating to legacy cases can be used to assist the PSNI in its work prior to the establishment of new institutions to look at past cases.

--- Later in debate ---

[Mrs Villiers]

Both the UK Government and the Northern Ireland Executive are united in our efforts to rebalance the Northern Ireland economy, and we both share the determination to ensure that economic prosperity and the boost that will come with corporation tax devolution are shared throughout all towns, cities and rural areas in Northern Ireland.

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

The Stormont House agreement states that corporation tax devolution will not take place until 2017, subject to various conditions, so will the Secretary of State tell the House what tangible benefits the economic pact has so far delivered to Northern Ireland’s economy? When did she last meet the Business Secretary and the Foreign Secretary to talk about how the UK Government can support Invest Northern Ireland?

[Mrs Villiers]

I regularly discuss such matters with my colleagues in Cabinet. We have rolled out a range of measures under the economic pact—devolution of corporation tax is one, and the investment conference following up on the G8 is another. We are seeing real progress on projects such as the Lisanelly shared campus, as well as increased take-up of the Government’s financial schemes to promote lending to business, so the economic pact is already delivering for Northern Ireland in a range of ways.

Corporation Tax (Northern Ireland) Bill

Ivan Lewis Excerpts

Tuesday 27th January 2015 Commons Chamber

[Mrs Villiers]

I agree that if the benefits of a reduced corporation tax rate for Northern Ireland are to be realised, that needs to be accompanied by a determined effort to sell the benefits of Northern Ireland to the world. I am absolutely 100% certain that if my right hon. Friend the Member for Witney (Mr Cameron) is Prime Minister in the next Parliament, that is exactly what the UK Government will be doing, because he is completely committed to Northern Ireland and believes that it is a wonderful place. That is why he takes every opportunity to tell the rest of the world what a fabulous place it is, and why he brought the G8 summit to County Fermanagh.

Turning to the mechanics of passing the Bill, any delay would be a great mistake. I therefore very much welcome the support that the Bill has received from hon. Members from Northern Ireland, who have rightly highlighted the importance of corporation tax devolution to their constituents and the potential benefits it could deliver. I welcome, too, the recent U-turn by the Leader of the Opposition, who last week confirmed that Labour will facilitate the passage of the Bill. I am most grateful for that. That recognises the firm and consistent support for the change from the five parties in the Northern Ireland Executive, as well as the fact that this new piece of devolution has a key part to play in the Stormont House agreement.

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

Will the Secretary of State explain at what point the Opposition ever said they would oppose the devolution of corporation tax to Northern Ireland in this Parliament? Can she give a date and a time when the Opposition said that?

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

On his visit to Belfast last week, my right hon. Friend the Leader of the Opposition spoke of the inextricable link between peace and stability and economic and social progress in Northern Ireland. He was right to do so: without stability, the business confidence necessary for investment and growth will inevitably be undermined; without economic and social progress, stability will be fragile as people see little or no evidence of a peace dividend. The interdependency between the economy and the peace process should be at the forefront of all our minds as we debate the Bill.

For Northern Ireland to move forward there is an urgent need for private sector jobs and growth as part of a long-term rebalancing of the economy. Both further increases in global inward investment and support for new local start-up businesses and small businesses with the potential to scale up will be crucial to progress in Northern Ireland in the coming years.

We should use every opportunity to celebrate the remarkable progress that Northern Ireland has made since the end of the troubles. There are no greater reminders of that than recent achievements such as Derry/Londonderry’s success as the city of culture, and Belfast’s holding the world police and fire games and turning pink for the Giro d’Italia last year. Those amazing events boosted the economy and brought communities together.

In the past few months, there have been major job investments supported by Invest Northern Ireland, including in more than 800 posts at PricewaterhouseCoopers in Belfast, and in almost 500 posts at First Derivatives in Newry. The services sector has recouped almost all the jobs lost during the recession. In recent years, there has been a significant increase in direct foreign investment to Northern Ireland. UK Trade & Investment figures for 2013-14 showed an increase of 32% in inward investment projects compared with the previous year. Northern Ireland outperformed all other nations in that regard: England, including London, achieved 11% growth; Scotland achieved 10% growth; and Wales achieved 18% growth. In 2014 alone, 50 new foreign direct investment projects were secured in Northern Ireland. That significant progress and international interest have been possible because of the leadership of the First Minister and Deputy First Minister, supported by the Northern Ireland Executive.

It must be said, however, that that investment is from a low base, and has inevitably been constrained by the consequences of the global banking crisis. We must acknowledge that the Northern Ireland economy still in fact faces real difficulties in relation to its economy overall, which is not working for the many or reaching kitchen tables in Northern Ireland.

Northern Ireland’s recovery continues to lag behind that in the rest of the UK. Last week’s labour market statistics show that unemployment is still gradually falling—we welcome the fact that it currently stands at 5.8%, a six-year low—but youth unemployment in Northern Ireland is stubbornly high at 19.2%, which is above the UK average of 15.4%, and over half of unemployed people have been out of work for a year or more. Northern Ireland has the highest inactivity rate of all UK regions. The earnings of a typical full-time employee in Northern Ireland fell by 1.4% in 2014, according to the official annual survey of hours and earnings. There has been a very disappointing loss of momentum in the private sector. For example, Ulster Bank’s purchasing managers index for January shows that business recovery in Northern Ireland has slowed, and output has dropped in the main sectors of manufacturing, construction, retail and services.

The Bill recognises many of the unique challenges that Northern Ireland faces. It shares a land border with the Republic of Ireland, where corporation tax is 8.5 percentage points lower than in the UK, and its society is emerging from conflict, with all the challenges that that presents. The public sector employs nearly one in three workers in Northern Ireland compared with fewer than one in five in the UK as a whole. It is therefore right that rebalancing the economy is a priority for the Northern Ireland Executive.

It is clear from the Stormont House agreement and the commencement clause in the Bill that the final transfer of the powers will not take place until April 2017 at the earliest. That ensures that there is adequate time for the proper impact assessment and consultation that the Opposition feel is essential in the interests not only of Northern Ireland, but of the rest of the United Kingdom.

For all those reasons, as well as out of respect for the existing political consensus in Northern Ireland on this issue, we will not seek to divide the House. Moreover, I want to make it very clear that, assuming we have reasonable time for an acceptable level of scrutiny, we will work with the Government to facilitate the passage of the Bill in this Parliament.

As the Secretary of State has set out, the Bill will give the Northern Ireland Assembly the power to set the main rate of corporation tax in respect of certain profits, while control over the corporation tax base, including reliefs and allowances, will remain with the UK Parliament. The devolved rate will apply to all the trading profits of micro and small and medium-sized enterprises if the majority of employee time and costs fall in Northern Ireland. The devolved rate will apply to all the profits of large companies attributable to a Northern Ireland trading presence. Certain trades and activities will be excluded from the scope of the rate, including lending and investment activities. Her Majesty’s Revenue and Customs estimates that the changes will affect 34,000 companies of all sizes in Northern Ireland, including more than 26,000 SMEs, with the exact impact depending on the conditions.

The Opposition accept that the devolution of corporation tax and its subsequent reduction could play an important part in boosting private sector investment in Northern Ireland, alongside a range of other measures.

[Jonathan Edwards]

I am happy that the Labour party is supporting the UK Government’s proposal to devolve corporation taxes to Northern Ireland. The Labour party is also in favour of fully devolving income tax to Scotland, yet it opposes the devolution of any major taxation powers to Wales. Why is Wales being offered an inferior deal?

[Mr Lewis]

We believe that Northern Ireland has special circumstances—a land border with the Republic of Ireland, and a society emerging from conflict—that are incredibly important in this context.

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

I welcome this measure for Northern Ireland, and I think that it will inevitably come to Scotland when we have a large Scottish National party group in Westminster. The argument about the land border is a strange one, because there are many places on land borders that have different rates of corporation tax. Logically, that could lead to a situation in which corporation tax was set island-wide in Dublin. I would not like to see such a situation, but that is the logic of the argument about the land border.

[Mr Lewis]

The hon. Gentleman’s party has long advocated the devolution of corporation taxes in Scotland, but the fact is that it did not push very assertively for that during the Smith commission negotiations. Equally, Scotland has enough to do getting on with the very considerable devolution package on which there is tremendous consensus.

The point I want to make to both hon. Gentlemen is that the idea that the devolution of corporation tax is a panacea is a fundamental mistake. I will develop that argument further; astonishingly, it was noticeably absent from the Secretary of State’s speech. The PricewaterhouseCoopers report “Corporation Tax—Game changer or game over?” found that the devolution of corporation tax would be “no magic bullet” for Northern Ireland. It concluded that there was

“no evidence that the Republic of Ireland’s low Corporation Tax, by itself, attracted the high levels of foreign direct investment…that fuelled the Celtic Tiger economy.”

When the Secretary of State did a lap of honour and a hastily arranged photo opportunity in Lisburn earlier this month, she failed to address a number of issues—she has repeated that failure today—that her successor and those on the Treasury Bench will not be able to duck. Any responsible Westminster Government and Northern Ireland Executive will have to address these issues before 2017.

First, the current Government’s commitment to the final transfer of powers is highly conditional. The agreement states:

“The powers will only be commenced from April 2017, subject to the Executive demonstrating that its finances are on a sustainable footing for the long term including successfully implementing measures in this agreement and subsequent reform measures.”

Sometimes, the Secretary of State does not emphasise that high level of conditionality.

Secondly, should Northern Ireland reduce its corporation tax rate to that of the Republic of Ireland, it would lose at least £300 million from its block grant. Budgets would have to be cut. In the awful event of the Tories being re-elected, that £300 million cut would increase substantially as a result of the promised return to 1930s levels of public expenditure.

Thirdly, slashing and burning the state, rather than having a long-term plan to rebalance the economy, is opposed by all Northern Ireland’s parties. Fourthly, severe cuts to school, further education, higher education and adult skills budgets, as well as reduced funding for infrastructure, would moderate the potential benefits of reduced corporation tax. It is investment in skills and infrastructure that will make the biggest difference to private sector jobs and growth, alongside corporation tax devolution.

Fifthly, the Secretary of State has failed to acknowledge the plain truth that significant reductions in corporation tax must be used to stimulate investment, not to inflate excess profits or pay at the top. As my right hon. Friend the Leader of the Opposition said on his visit last week, Northern Ireland faces no greater challenge than inequality. My party is seeking to address that through the independent Heenan-Anderson commission, which is attracting much support and interest in Northern Ireland.

The cost of living crisis has hit Northern Ireland’s families hard. Northern Ireland consistently records the lowest rates of private sector pay in the UK. One in six workers are classed as low paid and a quarter earn less than the living wage. Wages have fallen by £1,683 a year since 2010. One in five children in Northern Ireland live in poverty. Northern Ireland continues to have the highest claimant count of any region in the UK—at 5.7%, it is double the UK rate.

Unless this legislation is carefully managed to ensure that it does not benefit only those at the top, it will not only fail to enhance growth, but perpetuate the horrendous inequality that is leaving too many people in Northern Ireland at the margins of the economy and of their communities. It will also be important, as the hon. Member for South Down (Ms Ritchie) said, to ensure that the whole of Northern Ireland benefits from the legislation—not just Belfast, but Derry/Londonderry, Strabane, Portadown and Newry.

Finally, it would be the ultimate folly if in 2017, as Northern Ireland was preparing to align its levels of corporation tax with the Republic of Ireland, the UK was exiting the European Union. No part of the UK would suffer more than Northern Ireland from the inevitable impact on economic co-operation between the north and the south.

We will enable the passage of the Bill in a spirit of transparency about the potential gains, but with an awareness of the risks. Not only is that the responsible stance for a party that seeks to govern the country in four months’ time; it is right because we have a duty to be honest with the people of Northern Ireland about the difficult choices that lie ahead. The Executive are right to make private sector jobs and growth top priorities as they strive to build a better shared future, but they are also right to reject the slash-and-burn approach to the state that is being pursued with such relish by this unfair and incompetent Tory-led Government.

An incoming Labour Government will not only balance the books in a responsible way, but work with the Northern Ireland Executive to pursue an active industrial strategy that will boost private sector jobs and growth, while tackling the chronic worklessness and poverty of those at the margins of the economy and society in Northern Ireland. We will transform the economic pact between Westminster and the Executive by setting goals to expand the creative industries and other sectors that build on Northern Ireland’s strengths. A shared aim should be to encourage young people who go away to study and travel to return home to Northern Ireland when they are ready to settle down. That will be possible only through the creation of well-paid, high-skilled jobs.

The Bill opens up new opportunities for Northern Ireland, but it will require political leaders to make difficult choices and to ensure that the potential gains benefit the many and not the few. As I have said, the devolution of corporation tax is not a panacea, but if handled properly, it could be part of a new economy that works for working people and leaves far fewer people behind. Ultimately, that is how the Bill will be judged.

--- Later in debate ---

[Mr Paterson]

I thank the hon. Gentleman for his kind comments.

I would like to stress that this has ultimately been a team effort. I will list the people who have been involved. This proposal came from a black moment. I have cited the examples that I saw on the ground in Northern Ireland. At the time, a parallel process was going on. The last Government had asked Sir David Varney to conduct a report on the benefits of introducing a lower rate of corporation tax for Northern Ireland. In parallel, significant major figures in the business community were involved. The sadly late Sir George Quigley, to whom we should all pay tribute, had made significant representations. The Northern Ireland Affairs Committee had been involved, as had the Institute of Chartered Accountants in Ireland, led by Eamonn Donaghy.

Varney came up with a lukewarm response. He said, quite rightly, that corporation tax was not the only answer and that a skilled work force was also needed, as had been successful in the Republic. However, he missed the big picture that, time and again, major investment projects went to the Republic because of a lower rate of tax. The late Brian Lenihan, who was the Irish Finance Minister when I was shadow Secretary of State, said that the corporation tax rate was the “cornerstone” of the Republic of Ireland’s “industrial policy”. It therefore seemed bizarre that Varney looked not at the real advantages, but at the disadvantages.

I remember the crushing disappointment when the then Chancellor, the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown), knocked the proposal on the head. There was a conference at Stormont and then a bigger conference at Hillsborough. I remember Sir Tony O’Reilly waving his arms around and making a great burlesque speech about the advantages of lower corporation tax. Sir George Quigley was also there. Then the Chancellor knocked it on the head and came up with a number of palliative measures that were typical of him. I remember writing letters in subsequent weeks to try to get to the detail. He had stood up in public and said, “These measures will bring the same advantages as lower corporation tax,” but frankly, there were a lot of fiddly little deals that did not deliver. That was a black moment.

I remember sitting next to the late Sir George Quigley, by complete chance, and going over the matter. He was bitterly disappointed because the whole business community had been looking to the proposal. One reason why it had been knocked on the head was that the British state could not afford the forgone tax. At about the same time, we had the Azores judgment by the European Commission, which we could pray in aid. It said clearly—Varney took this conclusion—that corporation tax could be devolved. Lisbon had tried to reduce a tax arbitrarily in the Azores region and was told firmly that there were three conditions.

First, there had to be a democratically elected assembly with a clear jurisdiction over a defined geographical area. Northern Ireland qualified. Secondly, that assembly had to have complete decision-making powers, which could not be interfered with by central Government. Thirdly—it is a pity that the Scottish nationalists are not here to listen—there could be no compensation from central Government for the forgone tax, which had to be borne by the local assembly. For the record, Scotland pays about £2.5 billion in corporation tax, so if it dropped to the rates we are talking about it would have to find £1 billion. Perhaps the Scottish nationalists might consider that when they come back into the Chamber. Sadly, the figure is much lower for Northern Ireland because there are no FTSE 100 companies. Corporation tax is currently about £500 million.

We therefore came up with the idea, in accordance with the Azores judgment, of knocking the forgone tax off the block grant. Government spending in Northern Ireland is £23 billion—£13 billion raised locally and £10 billion from the block grant. If tax went down to Republic of Ireland levels, there would be a reduction of £200 million in the block grant. That is a very small investment to bring to Northern Ireland the sort of businesses that would come in.

That idea began to take shape. Following the dark days after it had been knocked on the head at the conference that I mentioned, two things happened. First, we set up a report by the TaxPayers Alliance, the investigation group, on corporation tax. Secondly, and I think more importantly, Sir George Quigley got together with others and pulled together a key group of people, to whom I pay tribute. There was Sir George, who at the time was chairman of Bombardier; Victor Hewitt, the head of the Economic Research Institute of Northern Ireland; Eamonn Donaghy, the head of tax at KPMG, who has been tireless throughout; Graham Gudgin and Neil Gibson, economists at Oxford Economics; Professor Mike Smyth, professor of economics at the university of Ulster; and finally Mike Hall, a tax partner at Ernst and Young. They formed the key Northern Ireland Economic Reform Group, and their report, which came out in February 2010, said categorically that if corporation tax in Northern Ireland changed from 28% to 12.5%, it would result in the creation of 80,000 new jobs over a 20-year period.

The previous year, there had been the terrible murder of Police Constable Stephen Carroll in Craigavon, which was an appalling event. We all know how divided the communities in Craigavon, Portadown and Lurgan have been. I remember clearly during one of my visits going to the great pharmaceutical company Almac, which employs about 2,000 people. The chief executive said, “If you can get this through and get corporation tax rates down to the level of the Republic, we’ll double the business and we’ll double the work force.” My direct response to the shadow Secretary of State and doubters in the Labour party—I am delighted that they have come on board today and said that they will support the Bill—is that they should think of the benefits to Northern Ireland, not just economically and socially but politically, of a further 2,000 people being on pharmaceutical-level wages and injecting money into their communities. The Labour party should get its head around that long-term benefit.

On that basis, and with strong support from the Prime Minister, I committed in March 2010, on behalf of the Conservative party, to devolve corporation tax. That became a manifesto pledge in our Conservative and Unionist manifesto. Although we did not quite win the election, that pledge was continued as part of the coalition programme. At the same time, there was real enthusiasm for the idea across the business community. In October of that year, Grow NI was formed, involving pretty well every business organisation—the CBI, the Institute of Directors, the Federation of Small Businesses, the chambers of commerce, the Northern Ireland Independent Retail Trade Association, Manufacturing Northern Ireland and about a dozen others. They lobbied people not just in Westminster but in Stormont, and importantly they got support from all five political parties in Northern Ireland. I pay tribute today to all those parties—I had endless discussions with them at that time, and they all came together. I think it was a unique event—I am not sure whether we had ever got all parties allied on a single policy before.

Key to that process was the Financial Secretary to the Treasury, who was then the Exchequer Secretary—I am pleased that he is in his place. He completely got on board with the long-term benefits not just for the Northern Ireland economy but for the UK economy. To pick up on the comments of my hon. Friend the Member for Amber Valley (Nigel Mills), if we can make Northern Ireland more economically viable, it will be of real benefit to our constituents in Shropshire and the east midlands. It will reduce the need for the block grant if the economy prospers and grows well. There is a massive UK-wide reason for supporting the devolution of corporation tax, and the then Exchequer Secretary really got that point.

My hon. Friend the then Exchequer Secretary and I went to Kelvatek, a splendid example of a Northern Ireland business, led by John Cunningham. All five political parties came along and we launched the consultation. It is important that the shadow Secretary of State understands that there was a lengthy consultation throughout 2011, and there were further launches for Grow NI, including the big launch at the Lyric theatre. There were about 750 responses to the consultation, and they were overwhelmingly in favour of the idea of devolving corporation tax.

That autumn, with the help of the then Exchequer Secretary, we began joint meetings involving the Northern Ireland Office, the Treasury and the Northern Ireland Executive. The first was in December 2011, and the last one in which I was involved was in June 2012. After that, I was delighted that my successor took up the baton. She has manoeuvred around Whitehall with great skill, because there was considerable hostility to the idea and real nervousness about it among significant elements of the establishment here. It is a tribute to her skills that we have the Bill today.

The Bill is quite something. This is a day that we will remember—as I said, in the long term, the benefits will be equivalent to what the last Government did in the Belfast agreement. It could help to create long-term prosperity and bring to disadvantaged communities the wealth that the shadow Secretary of State mentioned. The key thing is to get the message across. I would like members of the local parties to go back to Northern Ireland tonight with a clear message. The start date in the Bill is April 2017, and it is incredibly important that not only local businesses but UK and foreign businesses have a clear signal of what will happen on that date.

[Mr Ivan Lewis]

I pay tribute to the right hon. Gentleman for the work that he did in Northern Ireland. People have a great deal of respect for the contribution that he made.

May I ask the right hon. Gentleman a specific question? If, at the same time as corporation tax is devolved, the skills budget is slashed and there is inadequate investment in Northern Ireland’s infrastructure, what will the consequences be for the foreign direct investment that he keeps going on about?

[Mr Paterson]

I have cited the figure that state spending in Northern Ireland is £23 billion, which is a significant amount from public funds. With his obsession with public expenditure, the hon. Gentleman does not understand the concept of growing the cake. The reduction in corporation tax will lead to an increase in private activity. I have mentioned the figure of a £200 million reduction in the block grant, but the hon. Gentleman assumes that the size of the cake will be static, which it will not.

The local parties must grab this opportunity and make a clear statement that there will be a dramatic reduction in corporation tax from April 2017. I would happily go below 12.5%, but it must be that at most, to answer the question that the hon. Member for North Antrim (Ian Paisley) asked. The bigger the drop, the bigger the message that will be sent out around the world. My message was that I wanted to turn the whole of Northern Ireland into an enterprise zone. If we do that, the cake will grow, so the figure of £200 million is for the birds. There will be significant internal investment from companies such as Kelvatek, significant investment from the rest of the UK, and foreign direct investment. There will be more economic activity, which will rapidly make up for that modest reduction of £200 million. That money will stay in Northern Ireland hands, but it will be in business and private hands rather than state hands.

I therefore hope that the local politicians will go back to Northern Ireland with a clear determination to build on today. Although this is a dramatic day, all that the Bill does is provide the powers. The real trick in the long term is to make a clear statement that, as in the Republic of Ireland, there will be absolute determination to keep corporation tax low. That was what the Republic did through its most difficult time, and we can see the benefits there.

This is a great day for Northern Ireland, and I congratulate everybody involved, including all the political parties. I am delighted that the Labour party has come onside, and I congratulate the people in the Northern Ireland Office and the Treasury who have come up with a fiendishly complicated-looking Bill. I wish it well.

On-the-Runs Scheme

Ivan Lewis Excerpts

Tuesday 27th January 2015 Commons Chamber

[Mrs Villiers]

I am grateful to the Chairman of the Select Committee on Northern Ireland Affairs for his question. It is of course important that the PSNI has appropriate resources for its investigations under Operation Red Field relating to OTRs, as is the case for all other matters for which it has responsibility. I welcome the fact that the agreement on a final budget for the Northern Ireland Executive for 2015-16 allocated an additional £20 million to the PSNI. There is also the Stormont House agreement, which commits the Government to contributing £150 million to aid Northern Ireland in its treatment of legacy cases. I will look carefully at how that money should be appropriately deployed in the coming weeks.

On the question of legislation, I do not think I can really add to my previous answer. Having considered this carefully, the most effective means to ensure that we do everything we can to remove barriers to justice is a clear statement indicating that this scheme is at an end and these letters should not be relied on. That is what I have done. Legislation would not take us further and, I believe, would not be the right option in this instance.

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

As the hon. Member for North Antrim (Ian Paisley) suggested, the revelation yesterday regarding the collapse of the inquest into the murder of Gareth O’Connor has caused further concern and anxiety in Northern Ireland. Our thoughts today should be with the O’Connor family. Like so many of those left behind, they sought justice and truth about what happened to Gareth in 2003. They have waited 12 long years for an inquest into the death of their son, and the thought of preparing for a week-long inquest would have been harrowing for the family. This development made a highly stressful situation even worse.

News of another error from the administrative scheme for the on-the-runs is devastating, following the catastrophic error in the Downey case last year. We have apologised for the Downey error, and do so again for the error in the O’Connor case. In the same way as this scheme never offered amnesty, it was also never intended to cover alleged offences committed after the signing of the Good Friday agreement. Doubly troubling is the delay in the coroner and the family being made aware of the error. The Northern Ireland Office and the police knew about the case—indeed, it was referred to in the Hallett report.

I have several questions for the Secretary of State. Why did the Northern Ireland Office not ensure this family were told of the error in the immediate aftermath of the publication of the Hallett report? Secondly, further to the question from the Chairman of the Select Committee, in view of the financial pressures facing the PSNI, how long does the Secretary of State estimate it will take to review all the cases covered by the OTR scheme? I do not believe she has clarified that in her answer to the House today. Finally, on a related matter that has caused similar concerns, can the Secretary of State update the House on investigations into the missing information regarding royal prerogatives issued before 1997?

[Mrs Villiers]

I thank the shadow Secretary of State for his questions. It is useful to remind the House that this scheme never offered an amnesty, and that it was designed to give individuals who were not wanted an indication that they were not wanted by police, so the letters issued in relation to the Downey case and this one were clearly issued in error.

On the Chairman of the Select Committee’s question about the connection between the 95 individuals and intelligence or indications relating to 300 crimes, these are of course matters for the police to investigate, but I would emphasise that a connection to intelligence or evidence is not necessarily sufficient to justify arrest or prosecution.

I welcome the shadow Secretary of State’s repetition of the apology he gave on behalf of the previous Government for the errors made in these cases, and I, of course, am happy to reiterate the apology I made on behalf of this Government for the pain and hurt caused to all families affected by the OTR scheme. I think there is consensus that the scheme should, at the very least, have been handled in a much more transparent way.

I acknowledge that the way the family in this case found out about the connection to the OTR scheme was very problematic. My understanding is that the PSNI has issued an apology for that, and I join in confirming that apology. It is, of course, as I said in response to the previous question, important that the PSNI is properly resourced for all its functions, which is why the Government have provided extra security funding of £230 million and one reason why we have provided funding for help in investigating the past. Even with those additional resources, it is clear that Operation Red Field, the investigation into all the OTR cases, will take some years.