Northern Ireland Budget Bill

Debate between James Brokenshire and David Simpson

2nd reading: House of Commons & 3rd reading: House of Commons & Report stage: House of Commons
Monday 13th November 2017 Commons Chamber

[James Brokenshire]

I agree with the right hon. Gentleman on accountability. The difficult job that the Northern Ireland civil service has had to do is effectively make its best assessment of the outgoing priorities of the outgoing Executive. It is worth noting that a lot of work was obviously done in the relation to the budget before the Executive collapsed at the start of the year—work that the parties had been engaged in closely with the Northern Ireland civil service. None the less, there are challenges and pressures in respect of how the civil service is having to operate under the emergency provisions of the Northern Ireland Act 1998, and issues about accountability and political decision making are felt keenly. There is a lack of accountability at the moment, which is why we want to see the Executive back up and running. Indeed, if an Assembly were restored quickly, the Assembly would be able to do that job. It would be able to look back at the budgeting arrangements and to carry out the normal level of scrutiny. I agree, however, that the situation is unsatisfactory, and we need to see progress and get the devolved Government back up and running at the earliest opportunity.

The powers that the Northern Ireland civil service has been exercising have their limits. Under section 59 of the 1998 Act and section 7 of the Government Resources and Accounts (Northern Ireland) Act 2001, the civil service may only issue cash and resources equal to 95% of the totals authorised in the previous financial year. The powers do not allow Departments to use accruing resources, meaning that the resources available to them are in reality significantly less than 95% of the previous year’s provision. Right hon. and hon. Members will recall that I set out in written statements in April and July an indicative budget position and set of departmental allocations based on the advice of the Northern Ireland civil service. In my written statement on 19 July, I said:

“The exercise of s59 powers cannot be sustained indefinitely”—[Official Report, 19 July 2017; Vol. 627, c. 56WS.]

Although we had not then reached it, I also warned that that critical point was approaching. The resource limits in the absence of a budget are now fast approaching. Without further action, there are manifest risks that the civil service would simply begin to run out of resources by the end of November. That would mean no funding available for public services, with all of the negative impacts that would accompany such a cliff edge. No Government could simply stand by and allow that to happen, which is why we need to take forward this Bill today.

[David Simpson (Upper Bann) (DUP)]

The Secretary of State says that only 95% of the budget was allocated. My understanding is that that 5% equates to some £600 million that has been delayed in coming to Northern Ireland. Will he put it on the record today that the party to blame for that is Sinn Féin for not bringing the budget when it should have brought it?

[James Brokenshire]

I understand the political point that the hon. Gentleman is making, and he highlights the challenges and pressures. The indicative budget arrangement has in effect meant that the Northern Ireland civil service has largely been able to operate on the basis of a full budget, which was one of the reasons why we set out the indicative arrangements with the affirmation that, should it come to it, we would bring forward a budget Bill. We are taking steps today to follow through on that, because of the need to have finances in place. We obviously have not had an Executive, which is why we are in this situation.

Efforts have been undertaken to find an agreement, and I commend the DUP for its work and the ongoing discussions with Sinn Féin to find that agreement. We want to see an enduring power-sharing Executive who are able to get on with the job and to make the high-level budget decisions that we are being forced to take in this Bill. I recognise, however, the frustrations that are felt right across Northern Ireland about not having an Executive in place that are able to make such decisions.

Northern Ireland (Ministerial Appointments and Regional Rates) Bill

Debate between James Brokenshire and David Simpson

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

[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.

Northern Ireland: Political Developments

Debate between James Brokenshire and David Simpson

Tuesday 28th March 2017 Commons Chamber

[James Brokenshire]

The Government are focused on getting the best outcome from this, which is the return of devolved government. The hon. Gentleman makes his point powerfully about issues and risks relating to direct rule, which is why I have already said that they are profoundly not what we want to see, but obviously we are keeping all options under review. There is a sense of the work that the parties themselves can do. The two Governments can play a part in that, which is what Charlie Flanagan, the Irish Foreign Minister, and I have been doing. We will continue to play an intensive part, but as I said in my statement, we need to move to a new phase and see the work of the parties come together in a more inclusive way. I have been talking to the parties already as to how we achieve that, and we will see that progress in the days ahead.

[David Simpson (Upper Bann) (DUP)]

Legacy has been mentioned, as has history, but will the Secretary of State confirm that he will stand firm on the attempts by republicans to rewrite the past and the history of Northern Ireland?

[James Brokenshire]

It is important that we get a fair, balanced, proportionate and equitable outcome from the systems that we put in place, and that we recognise what happened in the past. That is why we proposed the setting up of, for example, an oral history archive, for people to be able to give their testimony and share their experiences. It is through that comprehensive approach that I believe progress will be made and that Northern Ireland will look to its future rather than its past.

Northern Ireland Assembly Election

Debate between James Brokenshire and David Simpson

Tuesday 17th January 2017 Commons Chamber

[James Brokenshire]

That underlines my general point on the need to get back to devolved government at the earliest opportunity, but as I have indicated, we intend to trigger article 50 by no later than the end of March; that is the approach that we have taken, and that is the work that continues. Invitations to appropriate meetings will continue to be made to the Executive, notwithstanding the current situation.

[David Simpson (Upper Bann) (DUP)]

Further to the comments made by my hon. Friend the Member for East Antrim (Sammy Wilson), there are concerns in my constituency that the Government’s eagerness to set up an Assembly immediately after the elections could lead to them contemplating some form of side-deal with republicans to get it up and running. May I gently warn the Secretary of State that that will be unacceptable?

[James Brokenshire]

There is a limited period under law in which to form a new Executive; it is around three weeks following a poll. That is why I make the point about maintaining open dialogue and thinking about how we can bring parties together. There has to be a sense of commanding support from across the community, which is why we need to listen very keenly and intently to the voices of the hon. Gentleman’s party and other parties on the process ahead. I stress the need to hold dialogue and discussions, and to focus on the principles in the Belfast agreement and its successors—those things to which all parties have signed up. That provides us with the framework, and we need to get on and do it.

Northern Ireland: Political Developments

Debate between James Brokenshire and David Simpson

Tuesday 10th January 2017 Commons Chamber

[James Brokenshire]

The point is that this was a devolved decision. It sits in the devolved space, so the UK Government have not had that sort of direct role, which was why I made the point that I did. The hon. Gentleman’s question is perhaps directed more at some of the points that have been made about an ongoing inquiry and the need to get answers about the decisions that have been made around the RHI scheme. It is that focus that needs to be given.

[David Simpson (Upper Bann) (DUP)]

I am sure the Secretary of State will agree that over the past 24 hours the real picture has been emerging. This is about a political wish list from Sinn Féin. The whole issue of a conflict of interest for the First Minister is a red herring. When it comes to the legacy issue, will members of Sinn Féin stand aside and resign when we are investigating things from their past?

[James Brokenshire]

The hon. Gentleman will know that the Stormont House agreement provides an important framework, agreed by all the parties, for how best to respond to issues from the past. My focus remains on seeking to give effect to that in accordance with the terms of the Stormont House agreement. I will continue to encourage parties to work together so that we can establish the political consensus required to achieve that, because of all the really important reasons that have been identified in the House today.

Oral Answers to Questions

Debate between James Brokenshire and David Simpson

Wednesday 20th July 2016 Commons Chamber

[David Simpson (Upper Bann) (DUP)]

1. What discussions he has had with System Operator Northern Ireland on the completion of the north-south electricity interconnector.

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

Let me say at the outset what a privilege it is to have been appointed as Secretary of State for Northern Ireland, and I pay tribute to the work of my predecessor, my right hon. Friend the Member for Chipping Barnet (Mrs Villiers). She played a very important role and made a significant contribution, and I, for one, fully recognise that. I look forward to working with right hon. and hon. Members across the House to maintain that approach of continued political stability, greater economic prosperity, and safety and security, as part of a bright positive future for Northern Ireland.

I understand that the previous Minister, my hon. Friend the Member for Wyre and Preston North (Mr Wallace), met EirGrid, the electricity system operator across the island of Ireland, to discuss the proposals for a new interconnector. I hope that proposals to deliver a stronger, more secure and more competitive network in Northern Ireland can be progressed quickly.

[David Simpson]

May I start by welcoming the Secretary of State to his new position and welcoming all his colleagues? I look forward to working with them over the coming months. He will know the benefits that the interconnector would bring, not only to Northern Ireland, but to the Republic of Ireland. Our understanding is that Sinn Féin is one of the biggest objectors to this. Does he agree that that shows its lack of understanding of simple economics?

[James Brokenshire]

I am grateful to the hon. Gentleman for warmly welcoming me to my post, and I felt this in a positive way when I was in Belfast on Monday. He raises the issue of the interconnector, as he has done on a number of occasions. This is being considered by the Northern Ireland Planning Appeals Commission—it is a decision for the Minister in the Northern Ireland Executive—but I reiterate that given the significant potential to help to reduce energy costs for Northern Ireland businesses, I would hope to see the project move forward as quickly as possible.