Northern Ireland (Ministerial Appointments and Regional Rates) Bill

James Brokenshire Excerpts

2nd reading: House of Commons
Monday 24th April 2017 Commons Chamber

[The Secretary of State for Northern Ireland (James Brokenshire)]

I beg to move, That the Bill be now read a Second time.

Before I move forward with this business, I would like to pay tribute to those in the Police Service of Northern Ireland and in other emergency services who spent yesterday keeping people safe from a significant bomb placed by dissident republican terrorists next to a primary school in north Belfast. I am sickened by this incident, which has caused outrage in the community and far beyond. It is clear that the consequences could have been utterly devastating. Potentially to put children, the wider community and police officers in danger shows a wanton disregard for life. This shows these terrorists for who and what they really are, and is a potent reminder that they have nothing to offer.

[Sammy Wilson (East Antrim) (DUP)]

Does the Secretary of State accept that the attempts this morning by the BBC to try somehow to justify what the terrorists did at the weekend on the basis that there had been no political progress shows the kind of banal reporting we get from the BBC? It is not worthy of a publicly funded body.

[James Brokenshire]

The hon. Gentleman has made his point in his own way. All I will say is that this was an appalling incident for which there was no justification whatsoever. I think the whole House would wish to pay tribute to the PSNI and all those agencies that do such an incredible job in seeking to provide security for Northern Ireland, for the risks that they often put themselves under as a consequence of that work and for the incredible contribution that they make.

[Sir Jeffrey M. Donaldson (Lagan Valley) (DUP)]

Does the Secretary of State agree that it is not enough for political parties and individuals to say that they support the rule of law? Surely it is incumbent on us all to support the individual officers who come from right across the community to serve all of the community. We should all be giving them our wholehearted support.

[James Brokenshire]

The right hon. Gentleman makes a powerful and important point about the incredible job that the PSNI does, the contribution that it makes and what that often means for its officers. I have a huge amount of respect for their professionalism and the personal dedication that they bring. I am sure the whole House would wish to underline that message of support for the incredible job that they do.

Moving on to the Bill, I have updated the House twice on the political situation in Northern Ireland in recent weeks: in my oral statement on 28 March and in my written ministerial statement last week. On both occasions, I set out that I would seek to bring forward legislation with two aims in mind: to provide the legal basis for an Executive to form, and to set a regional rate to enable that important source of revenue to be collected. As we approach the final week of this Parliament, now is the right time to deal with both those matters, in order to provide greater certainty for the people of Northern Ireland and to provide the opportunity for the parties to come together to secure the resumption of devolved government.

The background leading up to the introduction of the Bill will be familiar to many in the House. The collapse of the previous Executive in January placed a duty on me to set a date for a further election. I did so in January, and the election itself was held on 2 March. Since then, the UK Government have been engaged in talks with the political parties and, as appropriate, the Irish Government, in accordance with the well-established three-stranded approach. The talks have had one clear purpose: to re-establish an inclusive, devolved Administration in line with the 1998 Belfast agreement and its successors. Progress was made on several fronts during that phase on the formation of an Executive, including the budget and programme for government.

There was progress on legacy, too. Constructive discussions took place with all the parties on the detail of the legacy institutions set out in the Stormont House agreement and on the need to reform legacy inquests. Although no one will underestimate the challenge of addressing the legacy of the past, the proposals are now sufficiently developed that the next step should be to publish them for consultation. That way, we can listen to the views of victims and survivors and all those who will be most affected by the proposed new institutions.

Despite the progress that was made, there remains a defined number of outstanding issues on which there is a lack of agreement between the parties, and it was clear that a period of reflection was necessary to give the impetus for the discussions to conclude positively. It was with that in mind that the talks were paused over Easter. Since then, meetings have continued between the parties. The restoration of devolved government remains achievable, and it remains the absolute priority. It will, though, require more time and more focused engagement by the parties on the critical issues that remain, building on the discussions over the past seven weeks. The Bill would provide the space, and the opportunity, for the parties to do just that. We will remove the current legal barriers so that the Assembly can meet and an Executive can be formed at any point from Royal Assent to 29 June—three weeks after the general election.

We recognise that there will be focus on the general election, which is why the Bill provides parties with the scope and space to continue discussions to resolve their outstanding issues, while providing a period of reflection for the new Government if a deal still does not prove possible. That said, it remains highly desirable for the parties to continue to work to make progress quickly for the reasons that I have set out, and this Bill does not preclude the formation of an Executive sooner if the parties wish that to happen. That is an important point. In passing this Bill, we make it clear that the responsibility now lies with the parties to come together and make progress, and as I have indicated, I strongly believe that that can still happen. We have removed the legal barrier to progress, enabling an Executive to form without the need for a further Assembly election. If the parties have the will to make progress between now and the end of June, the platform is in place for them to do just that. In the meantime, we should not lose sight of the benefits that an agreement would have for the people of Northern Ireland. I am sure that that will be the hope of those voters who gave the parties a mandate on 2 March.

I pay tribute to the Opposition for their constructive and positive engagement in the process leading up to the introduction of this Bill. I pay particular tribute to the hon. Member for Blaydon (Mr Anderson) who may be making his final appearance at the Dispatch Box as shadow Secretary of State for Northern Ireland. Despite our broader political differences, I thank him for the overall support that he and his party have given me since I became Secretary of State in July. Northern Ireland undoubtedly benefits from the broadly bipartisan approach that we take in this House and, whatever the result of the general election, I hope that that will always continue. I wish him all the very, very best for the future. I know that his presence will be missed by many across this House who will wish him well in whatever new opportunities and new challenges he takes forward.

Moving to the substance of the Bill, clause 1 would remove the present legal barrier to an Executive being able to form to implement any deal that has been reached. It would retrospectively reset the 14-day clock in the Northern Ireland Act 1998, which expired on 27 March, with a 108-day period, removing the present duty on me to set a date for an election, with it arising again at 4 pm on 29 June if an Executive have not been formed by that point. This will provide the space for an Executive to form, and makes it clear that the responsibility for progress lies with the parties—indeed that duty to form an Executive and appoint Ministers in that process. As necessary, it would provide a period for further talks in the new Parliament, allowing all sides to take stock and move forward if a deal is not already in place. It would also mean that, if a deal is not struck, there is a period for the new Government properly to consider the way forward. That is important. In the absence of a deal, significant decisions will need to be made in the new Parliament to provide political stability in Northern Ireland. However, it will be for the parties to seize the opportunity, whether in the coming weeks or soon after, to deliver the Executive that they have so clear a mandate to secure.

I have mentioned the two acute issues of financial uncertainty caused by the lack of an Executive. The first is the absence of a 2017-18 regional rate, which represents more than 5% of the total revenue available to the Northern Ireland Executive. Normally, this would have been set by the Department of Finance earlier this year, via an affirmative rates order in the Assembly. That would have enabled bills to be issued in 10 instalments, giving certainty to ratepayers and allowing various payment reliefs to be applied. However, time has nearly run out for that course. If no rate is set in the next few days, there will be fewer bills in higher instalments, and the longer it takes to set a rate, the worse that situation will become. The only outcome would be bad debt, lost revenue, uncertainty and hardship.

Although we are clear that this is a devolved matter, we are also clear that only the UK Government can take action to secure the interests of individuals, businesses and indeed the Executive. Clause 2 would address the issue by setting a 2017-18 regional rate in Northern Ireland. It does so by setting “pence per pound” rates for both domestic and non-domestic properties. These rates represent a 1.6% inflationary increase, the same approach as was taken by the Executive in setting a rate the year before. As we make clear in subsections (4) and (5), it would not cut across the continuing right of the Executive to set a rate by order in the usual way, so this would be the most limited step available to us, taken at a point beyond which we cannot delay.

[David Simpson (Upper Bann) (DUP)]

The Secretary of State is outlining very well the business that this House may have to do and the business that he has to do today. But does he accept that we would not be in this place were it not for the arrogance of Sinn Féin, who walked away from the Executive and left Northern Ireland in the predicament we are in today?

[James Brokenshire]

What I can say to the hon. Gentleman is that in the recent election a clear mandate was set for the resumption of an inclusive devolved Government in Northern Ireland, and the focus needs to lie on that, on getting the Executive back into position and on dealing with the differences between the parties in Northern Ireland. We should all feel a responsibility for seeing an Executive back in position, working to serve the best interests and needs of the people of Northern Ireland. Ultimately, that is where our absolute and resolute attention should lie.

For completeness, although it is not covered in the Bill, I should say that the second financial matter is the lack of a 2017-18 budget. Its absence has meant that since the beginning of this month civil servants alone have been in charge of allocating cash, which is clearly not an acceptable solution for the longer term. Before Easter, therefore, I made it clear that I would provide further assurance in that regard if an Executive were not in place, consistent with the UK Government’s ultimate responsibility for political stability in Northern Ireland, so I wish to take this opportunity to provide further clarity to people, businesses and public services in Northern Ireland.

We very much hope, as I have said, that we will see an Executive up and running as soon as possible, but if that does not prove possible, I want to put on record that this Government would be prepared, as a last resort, to pass an Appropriation Act in the next session to provide legislative authority for the expenditure of Northern Ireland Departments. That is not a step that any Government would take lightly, but this House must not forget the duties we must uphold for the people of Northern Ireland.

[Sammy Wilson]

The Secretary of State has identified a very important issue—the lack of a budget—but does he accept that even with the assurances he has given to the House today there are still tens of thousands of people in the voluntary and community sector who depend on money from Government Departments of which they cannot be assured at this stage, that their jobs are therefore in jeopardy and that they face uncertainty? The longer he leaves this decision, the more he leaves people in that sector of the economy in a vulnerable position.

[James Brokenshire]

The hon. Gentleman makes an important point about the voluntary and community sector in Northern Ireland. I have very much had that sector at the front of my mind in publishing my written ministerial statement and in saying what I have this afternoon, knowing that some people have been put on protected notice and about the impact of uncertainty on whether payments will be continued beyond the current window. I know the civil service and Departments have already given assurances on funding for three months, but what further assurance can be given? By providing comfort to permanent secretaries through my written ministerial statement, I am advised that Departments will be able to extend current letters of comfort to give greater support and flexibility for the voluntary and community sector.

The broader point made by the hon. Member for East Antrim (Sammy Wilson) about the need for greater certainty and for a budget to be put in place is absolutely right. This is not a situation that can continue for much longer, which is why I have said what I have about the preparedness of this Government, if re-elected, to make steps to seek an Appropriation Bill should that prove necessary. As I have indicated, I earnestly hope that that will not prove necessary and that an Executive can and will be formed to make those decisions. In no way does the statement that I have made today cut across an Executive’s ability to take up position and set a budget in due course.

[Danny Kinahan (South Antrim) (UUP)]

Flexibility is a key point in running the budget. Civil servants run their departments well with their budget, but those little bits of flexibility matter when we as politicians are asked to help people. How does the Secretary of State envisage that working if we do not have a functioning Assembly? Will there be some mechanism so that people on the ground who have lost money or cannot do something are listened to?

[James Brokenshire]

The clearest way is for an Executive to be formed. That is the most direct way for assurances to be given and direction to be provided. The lack of political direction at the moment underpins the need for an Executive and political decision making in Northern Ireland at the earliest opportunity. As I have indicated to the House this afternoon, the UK Government are prepared to take action should that be necessary. Our sense of responsibility as the UK Government is to provide the necessary political stability and assurance for the people of Northern Ireland.

[Ian Paisley (North Antrim) (DUP)]

To be absolutely clear, is the Secretary of State stating to the House from the Dispatch Box that the choice is clear: it is devolution or direct rule? By putting in place the points that he has made about appropriations, the ground is being laid for direct rule if that is required.

[James Brokenshire]

I do not want in any way to prejudge the outcome of the coming weeks. I earnestly hope, believe and want to see devolved government re-established in Northern Ireland. That is profoundly in the best interests of Northern Ireland, so that there is local decision making. There should be a strong message across the House of wanting to put that in position at the earliest opportunity. I have been careful in what I have said in laying out the position on the budget, and I have given assurances to allow flexibility for the Northern Ireland civil service to use residual emergency powers to deal with the pressures that it is experiencing and to ensure that public services continue to be run.

I have published a written ministerial statement that sets out indicative departmental allocations which reflect the budget priorities and decisions of the last Executive. They provide a basis for allocations in the absence of an Executive. It is important to make the point that those numbers are not UK Government numbers, but reflect the advice of the head of the Northern Ireland civil service and his assessment of a position that takes account of the priorities of the political parties before the Dissolution of the Assembly, as well as further allocations that he considers are required. They are intended to give clarity to Northern Ireland Departments about the basis on which they may wish to plan and prepare for more detailed decisions, and to discharge their responsibilities in the meantime.

We should, however, make it clear that those totals would not constrain the freedom of an incoming Executive to amend spending allocations, nor would it prevent the UK Government from reflecting on the final allocations in the light of circumstances at the appropriate time. I underline the position set out in the Bill. If agreement is not reached by 29 June, the electoral duty would essentially return to the Secretary of State, who would call an election in a reasonable period. Any incoming Government would need to reflect carefully on the stability of Northern Ireland and, as I have said, the need to deal with certain financial issues. We need to be resolutely focused on the need to get an Executive into position. That is precisely what the Bill allows for.

[Bob Stewart (Beckenham) (Con)]

I thank my right hon. Friend for his statement, but has he seen the slightest indication from Sinn Féin, in the detailed and long negotiations that he has no doubt had so far, that they might consider being part of an Executive?

[James Brokenshire]

Yes, I have. That is why I believe that agreement is possible. The discussions that have taken place over recent weeks have shown where the space for agreement and compromise may lie. It is important that the Bill provides that space and opportunity for the parties to be able to find resolution of the outstanding issues and get back into devolved government, which is what the people of Northern Ireland voted for.

To go back to the budget, that budget does not allocate the resource and capital funding provided in the Chancellor’s March Budget. This funding was not allocated before the dissolution of the last Executive, and it is right that funding is available for parties to allocate to further priorities as they deem appropriate. Further detail on the spending plans will need to be provided through the Appropriation Act. My hope and belief is that the Act will be taken through the Northern Ireland Assembly, but that obviously relies on the Executive being formed. As I have indicated, that is where the focus should lie. If not, as I have said, we would be prepared to legislate to provide certainty, in line with our ultimate responsibility for political stability and good governance in Northern Ireland.

[Mark Durkan (Foyle) (SDLP)]

Will the Secretary of State clarify whether, in his mind, such legislation in that context would amount to direct rule in the sense that we have always know it, or would it be some form of downloadable legislative cover for administrative governance when it comes to further budget setting?

[James Brokenshire]

Again, I would not want to prejudge what the situation might be. That will be for an incoming Government. My point remains that that does not need to be the outcome. The outcome we want is for an Executive to be formed and a devolved Government to be in place, making decisions in Northern Ireland for the people of Northern Ireland. That is why I make these point about what the Bill provides and how it gives the space to allow that to happen. That must be the focus of us all in the time ahead.

By passing this Bill, we can provide the scope and space for a deal to be done by the parties. I will be working intensively with the parties to secure that outcome in the weeks ahead. Northern Ireland needs the restoration of an inclusive devolved Government working in Northern Ireland’s best interests. That is what the people of Northern Ireland voted for. It is what will deliver the public services that people rely upon, and it is what businesses, community groups and individuals across Northern Ireland want. The Bill will secure a framework within which that can be delivered. I commend it to the House.