Leaving the EU: Funding for Northern Ireland

Jack Lopresti Excerpts

Tuesday 24th January 2017 Westminster Hall

[Ms Ritchie]

I do not necessarily agree. Money is pooled. It is about the pooling of sovereignty and moneys in the European Union, so it involves money from other European Union countries. I caution Members that there is absolutely no guarantee that we will get equivalent funding from the Treasury post-2020. Unfortunately, the Chancellor’s assurance that all EU funding will be guaranteed during the Brexit process is of little reassurance to the people of Northern Ireland.

First, we must remember that that assurance is merely political and could be reversed with a simple press release from No. 10. Nor would it be the first financial promise broken in the wake of Brexit. We all remember those red buses that said “£350 million for the NHS”, which disappeared like snow off the ditches before the final votes were even tallied. The fundamental issue for Northern Ireland is that the promise to match EU funding is grounded in the premise that we can break away from our important trading partners without hurting our already fragile economy.

[Jack Lopresti (Filton and Bradley Stoke) (Con)]

Does the hon. Lady not also recognise that a fundamental economic issue for Northern Ireland is rebalancing the economy away from the public sector? Brexit provides an opportunity for a more outward-looking export-based economy and will help rebalance it.

[Ms Ritchie]

Although I agree that we need to rebalance the economy in Northern Ireland, I do not think that it is valid to argue that we should do so by denying our access to 27 European countries’ important export markets, particularly at a time when it is difficult to secure export markets in south-east Asia.

I will not mince words or shy away from predicting the obvious: post-Brexit, the British Government will simply not be able to carry on as if it were business as usual. Despite the promises of the leave campaign, the only certainty that I foresee in the years post-Brexit is more and greater austerity as exporters, importers and employers take the hit of new tariffs and restrictions. The Chancellor indicated as much in a recent interview with the German media in which he made it clear that outside the single market, Britain will have to move away from the European social model to become something entirely different.

Are we really expected to believe that in the new social model that the Government are preparing, Northern Ireland’s structural and infrastructural funding will not be cut further? That is one absurdity too many, and the public in Northern Ireland will never buy it. The only way to protect PEACE and Interreg funding is to retain Northern Ireland’s eligibility for EU funding, whether in the north’s own right or by virtue of our relationship with the Irish Government. Even if funding could be guaranteed, I still want to impress on the Minister the importance of funding coming not only from the Irish or British Governments, but from the EU.

--- Later in debate ---

[Kris Hopkins]

Thank you, Mr Hollobone.

[Jack Lopresti]

Will the Minister give way?

[Stephen Pound (Ealing North) (Lab)]

Give him a chance!

[Jack Lopresti]

Just briefly. I appreciate the Minister giving way. On the point about our attitude and the optimism that we need, we all recognise that people have genuine concerns about the process, yet we must not talk down the Northern Ireland economy. We are trying to attract inward investment and to create some energy, enthusiasm and optimism for the opportunities of Brexit, which are what we must focus on.

[Kris Hopkins]

I thank my hon. Friend for his intervention. He is right that we should be optimistic; we have lots of grounds to be so. At this moment in time, the economy has been completely transformed, and we can build on that. Whether in the tourism economy, manufacturing or agriculture, there is huge opportunity. Our highly skilled populace can add to that further growth.

To touch on the Chancellor’s guarantee, applications for funding secured before the autumn statement will continue through the negotiations period and afterwards. In particular, we guarantee common agricultural policy funding until 2020, which I know will be an important element for the constituency of the hon. Member for South Down, which includes a big rural community that is dependent on the farming industry.

A difficult election campaign is about to start and its tone is important. It will be set against the context of our decision to leave the European Union. There is huge opportunity to grow the economy of Northern Ireland and the rest of the United Kingdom. It is for us as leaders, whether here in Westminster or in the Assembly, to seize that opportunity. I reassure the hon. Lady that the Government’s intention is to ensure that we make the best of the decision we have made for the economy and the people of Northern Ireland.