Northern Ireland Budget (No. 2) Bill

Jim Shannon Excerpts

2nd reading
Monday 10th July 2023 Commons Chamber

[The Secretary of State for Northern Ireland (Chris Heaton-Harris)]

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

In doing so, I once again speak with a strong sense of disappointment. At multiple junctures since becoming Secretary of State last year, I have stood at this Dispatch Box when realistically I should not have been doing so. That sentiment very much applies today, because I believe these decisions should be taken by locally elected politicians.

The Government have brought forward this Bill because the Northern Ireland parties have been unable to form an Executive and subsequently set a budget for this financial year. The Government have therefore been compelled to step in again and set another budget. I set out the headline departmental budget allocations via a written ministerial statement to Parliament on 27 April this year, and this Bill puts those allocations on a statutory footing. We have also published more detailed information in respect of each of the Northern Ireland Departments’ spending plans through the main estimates, which I laid as a Command Paper on 3 July.

Today’s debate is only the Second Reading of this legislation, with the remaining stages due to take place after the summer recess. The summer therefore presents an opportunity for the Northern Ireland parties to come together as a restored Executive and take their own budget legislation through the Assembly, making the remaining stages of the Bill in this place superfluous.

It is no secret that the pressures on Northern Ireland’s public finances are acute. As with the 2022-23 budget, setting this budget was not an easy task, but it was necessary to deliver a balanced budget and provide the Northern Ireland Departments with budget clarity to help get their spending under control. As far as possible, we have aimed to protect frontline public services. In recognition of the pressure on the health service, over half of the total budget is to be spent on health.

Of course, these pressures on Northern Ireland’s finances did not appear overnight. Successive former Executives have failed to make the strategic decisions required to put the public finances on a sustainable footing and make public services affordable. The unsustainability of Northern Ireland’s finances cannot continue. It is fundamentally the responsibility of the Northern Ireland Executive to run a balanced budget, and until they do, the outcomes for citizens will not improve. That is why the Government stand ready to work with a restored Executive on budget sustainability, including the implementation of revenue-raising measures.

[Jim Shannon (Strangford) (DUP)]

Very quickly, in relation to the budget, my hon. Friend the Member for Belfast East (Gavin Robinson) has always referred to the time for the Barnett consequentials to be looked at, and the population of Northern Ireland is up some 200,000 in 10 years, and 100,000 in five years. Does the Secretary of State not agree that it is time to look at the whole budget for Northern Ireland because of the extra population increase and the diverse community we now have? There has to be money in place, but that money has to reflect the demands of our population in Northern Ireland.

[Chris Heaton-Harris]

I thank the hon. Gentleman for his point, and we could consider introducing a needs-based factor into the Barnett formula for Northern Ireland—it would be a similar mechanism to that implemented in Wales—to put Northern Ireland’s public finances on a more sustainable footing. However, the absence of a functioning Executive has an impact on what can be done to address the systemic issues that Northern Ireland faces. Locally accountable leadership is urgently required to ensure that Northern Ireland has a stable and flourishing economy, and to advocate for reform of Northern Ireland’s public finances. To completely answer the hon. Gentleman’s point, negotiations between the Welsh Government and the Treasury on a fiscal framework and Barnett formula adjustments took over seven years. This is not an issue that could be solved overnight, even with the best will in the world.

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

May I say what a pleasure it is to speak in this debate? I am pleased to follow the right hon. and hon. Members who have already contributed. My colleagues have clearly set out the case so far: there is a problem with the Northern Ireland budget. With respect, the Secretary of State, assisting those who wish to force the DUP—the hon. Member for Foyle (Colum Eastwood) referred to this and the tactics of pushing the DUP—towards an unfit regional government, seeks to blame the lack of an Assembly on the difficulties facing Northern Ireland. However, the facts as outlined by my colleagues are abundantly clear: the Government are underfunding Northern Ireland.

We are committed to making the Northern Ireland Assembly work. That is not in any doubt; but what we are also committed to is making sure that we address the Windsor agreement and the Stormont brake, which sidelines Unionists. Hon. Members should not just take my word for that; they should listen to Bertie Ahern, who has indicated that we cannot sideline Unionists when it comes to finding an agreement, and Tony Blair, who has said likewise. If we want an agreement that moves forward, do not ignore Unionism; make Unionists part of the agreement. It seems logical to do that, but sometimes that seems to get lost.

I am a very straightforward man, and I always try to be honest and forthright in my dealings. I am someone who believes in speaking the truth. I try to biblically speak the truth in love, and sometimes I fail in that, because I am a human being, and that makes me fallible. Today is going to be another stretch, because the absolutely unfair treatment of Northern Ireland by this Government is difficult to remain calm about. Some examples of that would include how hard it is for a family in my constituency to look at their 66-year-old father, who should be looking forward to retirement but is crippled, awaiting a hip replacement for the last six years. His health is getting worse, and there is still no hip replacement for that gentleman, and there are many like him.

It is hard to look at the 41-year-old cancer sufferer who, because of funding concerns, is waiting to hear if her treatment plan will be passed, and even more difficult to look at her three young children, who do not understand that their mother’s treatment comes with a price tag—the hon. Member for Hackney South and Shoreditch (Dame Meg Hillier) referred to the financial issues and how they affect the Northern Ireland budget. It is hard to speak with young families who know that their child needs additional help to achieve their educational and vocational potential, and yet there is no funding for a classroom assistant to keep their child in mainstream education, or for their child to move to a special ability school.

We have energetic, hard-working and committed community groups, who do so much in my constituency of Strangford—and indeed in everybody’s constituency, to be fair. It is hard to see tremendous community programmes, which are making a difference in communities, torn apart by the troubles in Northern Ireland. We have had some focus on paramilitary activity in my constituency and that of the hon. Member for North Down (Stephen Farry) over the last period of time, so we know only too well what is happening. Those community groups are closing their doors, as funding stops.

It is hard to look at all this and know that my own Government understand it, yet are unwilling to do the right thing—the thing that they have rightly done by my Welsh counterparts and their constituents. It is hard to know that constituents in Wrexham and Glamorgan have their needs recognised through the Holtham formula, yet Strangford residents are second class. As has been made abundantly clear, the formula is a UK formula, and the UK Government have accepted it as such. If they rejected it now for Northern Ireland, they would have to reject it for Wales. Yet here we are, with an underfunded budget and a Northern Ireland Office that blames the DUP for this issue. The budget is set in this House, as is clear from today’s proceedings, and that budget is unacceptable, as many speakers—indeed, all of them—have established.

Forgive me if I am repeating what others have said, but the penny does not seem to have dropped in some quarters. Let me be clear, when the argument is made that the only way to sort out the Barnett formula is by returning to Stormont, that will not help by itself, because the funding problem is still there and still real. My hon. Friend the Member for Belfast East (Gavin Robinson) outlined the disparity in the Barnett formula, and indeed the Holtham formula. Wales had what should have been the hardest battle. It was the first country to be damaged by Barnett, and the Government knew that logically, in accepting the Holtham formula for Wales, they must also do so for Northern Ireland and Scotland. That is the argument of my hon. Friend the Member for Belfast East and my right hon. Friend the Member for East Antrim (Sammy Wilson), and it is my argument as well. Wales won the argument, and it necessarily won it for the rest of the Union. Going forward, it matters not who makes the point, because the Government have accepted the Holtham definition of need.

As my right hon. Friend said, if 0.7% of that was made available, there would be £322 million of extra money for the Province. Let us think what could be done with that in all our constituencies. Education in my constituency of Strangford could be greatly helped. We have been waiting for the college in Glastry for some time—the price is about £14 million, and the land has been set aside and already purchased by the education authority. That could be built if that £322 million was available. The schools across Strangford could have a wage increase for their teachers and their classroom assistants. Primary schools could have the renovations and repairs they need. West Winds primary school comes to mind as just one of those that has been waiting for some time to get necessary renovations and repairs.

When it comes to roads, I make this point honestly and clearly, with no disrespect to the manager of the road service in Newtownards, whose budget has not increased by the amount that it should have. There are roads across Ards that need urgent resurfacing but that cannot be carried out. If the £322 million mentioned in the briefing provided by the Northern Ireland Office was available, Mark Street, Mill Street, Beverley Heights and Beverley Road could be resurfaced, for example, and that money could make a difference.

I continue to represent the interests of the fishing fleet at Portavogie to the council and the Northern Ireland Assembly. The boats in that fleet are, on average, 40 years old. They are not energy efficient, although they could be. Grants could make the boats energy efficient or help the fishermen buy new boats, which seems to be happening in Scotland and parts of England and Wales. Again, that £322 million could make that difference.

I am minded to think about the police. I am a great believer in community policing, which is under pressure. I know the right hon. Member for Chipping Barnet (Theresa Villiers) will be introducing an Adjournment debate and referring to the importance of police stations. In my constituency and across Northern Ireland, the role of community police is critical. They are the eyes and ears of the police. They can make policing better and improve the methods that the workforce uses. When I look at what could make a difference to my constituency of Strangford, and the whole of Northern Ireland, I am clear that that £322 million that we should be getting, but are not, would make a difference and make lives better.

Facts are clear, and I will conclude with that point as I am conscious of the time you have given, Mr Deputy Speaker. The truth has been spoken and now we are looking for our Government to simply do the right thing by my Strangford constituents, as has been done in every other constituency. Stop punishing the elderly, the ill and our children, and do what has been done in the rest of this United Kingdom. Meet the needs of Northern Ireland as an integral part of this United Kingdom, as it is clear we still are. Actions mean more than words: speak clearly and plainly today. I look to the Minister for his response. On behalf of my constituents in Strangford, and those in the whole of Northern Ireland, speaking clearly and plainly today is my ask of the Northern Ireland Office.