Northern Ireland Budget (Anticipation and Adjustments) Bill

Jeffrey M Donaldson Excerpts

2nd reading: House of Commons & 3rd reading: House of Commons
Tuesday 20th March 2018 Commons Chamber

[Owen Smith]

Of course, that is another very important issue. It is not necessarily related to the substance of this Bill, which is largely about financial measures, but I am sure that the Secretary of State has heard the hon. Gentleman’s point. I will be continuing to talk about the military covenant and its importance to all communities in Northern Ireland.

On pensions, the Secretary of State should know that some of the victims, particularly those represented by the WAVE group, will be here to listen to our proceedings tomorrow. I urge her to show leadership and find the resources to provide them with the amount of money that they need. It will be a tiny amount of money for the state in the grand scheme of things—£2 million to £3 million a year—but it will be a lifesaver for individuals.

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

The shadow Secretary of State will know that this is not just a question of financial provision, as we will require legislation. The Democratic Unionist party is prepared to put forward a private Member’s Bill to propose such a pension for seriously injured victims and survivors in Northern Ireland. Will the Labour party support that Bill?

[Owen Smith]

That will depend on the nature and the terms of the Bill, and on how all individuals are treated under it. The right hon. Gentleman will know that, as I said earlier, people have concerns about the definition of “victim” and the nature of some of the individuals who might benefit from such a pension. My view is clear. As I put on the record a moment ago, we cannot allow the perfect to be the enemy of the good. Even if some people injured by their own hand were eventually in receipt of a state pension, that would be a price worth paying to provide the necessary resources for the vast majority of innocent victims.

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[Maria Caulfield (Lewes) (Con)]

May I start with an observation? It is interesting that when we talk in this place about Northern Ireland and Brexit, the Benches are absolutely heaving, but when we talk about the budget for Northern Ireland, which is having a real impact on the day-to-day lives of the people of Northern Ireland right now, the Benches are much less full.

I welcome the Bill. I have served on the Northern Ireland Affairs Committee, and I have heard at first hand from some of the witnesses who have attended how difficult life has been for the people of Northern Ireland without a budget in place. We have heard from the Chief Constable of the Police Service of Northern Ireland about how life is difficult in the public sector even in ordinary times, but when working to a budget that has not been set, it is almost impossible. He explained how for days, weeks and months he did not even know whether he had the money to pay his officers, which is just an unacceptable position to be in.

The Committee has also heard from members of the business community in Northern Ireland about the difficulties that not having an Assembly, an Executive or a budget was giving them. They gave the good example of the apprenticeship levy. Businesses are paying into it, but because no budget is in place, they have no access to the funds. Apprenticeships in Northern Ireland are hugely at risk, and this in a part of the United Kingdom where apprenticeships are needed for all communities more than ever. Because of the lack of a budget, businesses are finding that the apprenticeship levy is forming a type of additional taxation.

I have met charities in Northern Ireland—I am particularly thinking of Addiction NI, which works with people trying to combat alcohol and drug addiction—and I know that not having a budget in place is having a huge impact on their ability not so much to provide an immediate service, as to plan for the long term. These are difficult times for charities, and not knowing where the next penny is coming from or what direction a Northern Ireland Government will be going in makes it almost impossible.

Then we have the Belfast city deal, which was announced in the UK Budget late last year, but which, as far as I know, is going absolutely nowhere. This city deal is an opportunity for Belfast to build on its infrastructure and create jobs.

[Sir Jeffrey M. Donaldson]

May I assure the hon. Lady that the Belfast city region deal is going forward? It is being led by a consortium of local councils—Belfast City Council, Lisburn and Castlereagh Council, Antrim and Newtownabbey Council, and some others—

[Sammy Wilson]

Mid and East Antrim.

[Sir Jeffrey M. Donaldson]

And, of course, Mid and East Antrim. The absence of a devolved Government is therefore in no way inhibiting progress on the city deal, which is directly between central Government and local government in Northern Ireland.

[Maria Caulfield]

I am extremely pleased to hear that, because the city deal is a huge opportunity for Belfast and, if it works well, could be a huge opportunity for other parts of Northern Ireland in future.

Not having a budget set for this financial year has a huge impact, but I am greatly concerned that we do not have a budget for the next financial year, because we have heard time and time again how difficult things have been for the charities sector, public services and businesses. This constant uncertainty, a bit like the uncertainty around Brexit, is just not feasible for the long term.

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[Paul Girvan (South Antrim) (DUP)]

It is a pleasure to follow my hon. Friend the Member for Belfast South (Emma Little Pengelly). The word “anticipation” is in the Bill’s title, and a lot of anticipation has been associated with this legislation. I do not want to regurgitate things that have been said already, but I was one of those Members of the previous Assembly who was told that they could talk not about what the money was going to be spent on but about the budget and what had happened historically. We had to glibly go ahead and go back through the detail of our wish lists for our constituencies.

In welcoming the Bill, I wish to go back over some of the ground that has already been covered. We had a difficulty last year: no Budget was set. One never came forward to the Northern Ireland Assembly. As a consequence, the permanent secretaries in Departments were left in a very difficult position: they were allowed to make a spend of up to 75% of their budget. Ultimately, we were told that they could spend up to 95% of their total budget, which would leave Northern Ireland with a black hole of somewhere in the region of £600 million accounted in one year if no Budget was set.

Thankfully, a Budget was put through this House in November 2017, which meant that the total amount allocated could be spent. I appreciate that that creates its own difficulties in that Departments cut their cloth accordingly, as they know where they can, and where they cannot, make their spend. Unfortunately, decision making is the main area with a deficit. The difficulty over the past year is that many projects were put on the backburner. Some civil servants used the excuse of no political direction as a reason to do nothing. In my area, we have roads that need repairing. Unfortunately, whenever it comes to monitoring rounds, we do not have the opportunity or the flexibility to move money where it is needed. That is a big problem. That has happened not just in Northern Ireland, but throughout the United Kingdom. A lack of direction has led to problems in our education sector and in our health sector—two areas of biggest spend.

In the past month, I had occasion to meet a delegation of principals from schools right across my constituency, representing every sector of education, Irish-medium included. I can only say that there is a total unfairness in the way that education is funded. Unfortunately, the Department says that it cannot make an adjustment because it needs ministerial direction. We have primary schools that receive £2,242 per pupil. Another sector of education receives five times that amount per pupil. Where is the equality when one pupil is valued at five times the level of another in the ordinary controlled sector of education? That really needs to be looked at. The message that came from that meeting of principals was that they do not necessarily want more money; they just want it spread more fairly and evenly throughout the education sector. That would mean that we would have the same outcomes in whatever sector of education we are dealing with. That was the message that came out loudly and clearly, and it is something that I want to see being driven forward.

I appreciate that all sorts of options have been proposed for how we deal with the way forward. All I can say is that we are rolling down a track, and there is a buffer. I appreciate that decisions have to be made in June, or whenever we set a Budget, but if we do not have an Assembly up and running—I cannot see us having one at that time—we will not have Ministers in position in Northern Ireland to give direction to the way the budget is spent. Let us be honest, not all of us have the same faith that the Northern Ireland Office will deliver the money fairly either. Therefore, we need direct input from Westminster to ensure that the spend is made correctly.

As my right hon. Friend the Member for Belfast North (Nigel Dodds) has said, great play was made about the confidence and supply money. One message that we have been very sure about putting forward is that this is not our money—this is money for the whole of Northern Ireland and it is to deliver for the whole of Northern Ireland in areas where it will have the most benefit. That is very important.

It was interesting to hear the Chair of the Northern Ireland Affairs Committee make reference to the Comptroller and Auditor General and the Public Accounts Department in Northern Ireland and some of the scrutiny rules that might be required. He suggested—and this is something—that we might well set up a scrutiny Committee, which would be made up of Members of the Legislative Assembly. I think that the Secretary of State’s predecessor had already suggested that this might be a way forward, giving the Assembly some form of business by involving it in the scrutiny role of both Departments and the PAC.

There are those in Northern Ireland who have said that they welcome the budget, although former Minister, Máirtín Ó Muilleoir, has been on local media stating how sad it is to see Tory austerity being driven forward in Northern Ireland. But there is a Barnett consequential carried forward to Northern Ireland through this budget, so we are getting our increase. The additional moneys that we have received for our confidence and supply agreement are over and above anything else, and we will ensure that they have direct benefits for Northern Ireland.

We need to be careful that we do not stand back and say that we do not want the Northern Ireland Assembly back. As a former Member of the Legislative Assembly, I see the benefits of devolution and believe that it is the right way forward for Northern Ireland. Unfortunately, we have a sword of Damocles held to the back of our necks, and it is being held by one party: Sinn Féin. We really have to stand up to them, drive forward and have, as the hon. Member for Lewes (Maria Caulfield) said, an Assembly of the willing. Let us be honest—there are those who are willing to run Northern Ireland and work together. We are willing and want to go into an Assembly tomorrow. We hear red lines mentioned all the time now. Well, Sinn Féin has unfortunately set its red lines when it comes to the issues that it does not believe it could not drive through the Northern Ireland Assembly. Instead, it uses the talks process to drive forward its own agenda.

The Irish language is totally toxic to my community, and Sinn Féin knew that. Those issues were just put on the table to drive us further down the road. With the elections in the Irish Republic, Sinn Féin wanted to ensure that it did not let the Northern Ireland Assembly get up and running; it was keeping its eye on what was happening in the Republic of Ireland.

[Sir Jeffrey M. Donaldson]

On my hon. Friend’s point about the Irish language, the DUP has made it very clear that we do not object to people speaking the Irish language or having their children educated in the Irish language. Indeed, the Government in Northern Ireland have contributed millions of pounds towards promotion of and education in the Irish language. But the fact is that when a Sinn Féin spokesperson says that every word spoken in Irish is another bullet fired in the cause of Irish unity, they politicise a language, meaning that it becomes a very divisive issue in Northern Ireland.

[Paul Girvan]

I agree 100% with my right hon. Friend. I do not necessarily hold to speaking Irish, but I am not going to be against those who want to learn it and speak it. But there should be fairness and equality in the funding of these cultural issues, and political direction is needed in this area for the following year’s budget.

I appreciate that there were Departments that did not make their full spend. If other Departments were to come before the Assembly, they would have to qualify their accounts because of the overspend; there would probably be a vote on account associated with the overspend of some Departments. Some should probably have learnt a lesson and been a little bit more prudent in their accounting. I appreciate that there were negotiations about the spring statement last week, and Departments will have had some input. We want to see political direction to ensure that the spend is made to benefit the whole of Northern Ireland for the year 2018-19.

I, for one, am sad that we are here to discuss this. It will be worse when we are having to discuss the budget in June, because each and every one of us will have our own pet project that we will want to include in the debate, and we might well drag it out for longer than it should go on. However, I hope that the message from today’s debate is going out loud and clear: we are here because one party failed to deliver a budget in 2017-18. As a consequence, all the blame should be laid at the house of Sinn Féin over what it has caused Northern Ireland to suffer in the past year.

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[Ian Paisley (North Antrim) (DUP)]

I understand that the Under-Secretary will be replying to many of the points made in this debate. I want to add to the list of his replies that will be vital going forward.

Since being appointed, and in looking at the budget and how we got to this point, the Minister has also created an expectation. He has been very diligent, going round Northern Ireland, visiting with Invest Northern Ireland, visiting the Police Service of Northern Ireland and many other groups, along with the Secretary of State, making the case, listening to needs and, I suppose, creating an expectation that those needs will rightly be addressed. Of course, and to echo everything said by every other Member, we would far rather those expectations were addressed by a functioning Northern Ireland Executive and Assembly. However, at some point we have to smell the coffee and recognise that that is not the case at the present time and, realistically speaking, probably will not be for the remainder of this year. If that is so, and given that between now and June the Minister will have to look at the next budget and how we deal with incoming expenditure and setting targets, it is important that he turn his mind to certain matters,.

I want to focus on one part of the portfolio that I carry responsibility for in this House, and that is sport. We have a very successful sport tourism portfolio. Indeed, Northern Ireland golf tourism is about to really take off in the coming year, and that has been started in the last week by the success of Rory McIlroy, who set a particular standard of achievement in the Arnold Palmer cup.

[Sir Jeffrey M. Donaldson]

When my hon. Friend speaks of smelling the coffee and the importance to our economy of driving things forward, he will be aware that one of Northern Ireland’s many success stories in the past 14 months is the Pure Roast Coffee company in my constituency, which has struck a deal to supply coffee across China, so there is good news and we should welcome it.