On-the-Runs Scheme

Jim Shannon Excerpts

Tuesday 27th January 2015 Commons Chamber

[Mrs Villiers]

I have certainly always tried to be objective and measured in how I view the actions of the previous Government on these matters. In relation to OTRs generally, there certainly are some differences between the parties, not least of which is the opposition of the Conservatives and the Liberal Democrats to the Northern Ireland (Offences) Bill. In relation to this scheme and the way in which Northern Ireland matters were handled generally by the previous Government, I do not doubt their sincerity. They were motivated, I am sure, by a wish to see the process move forward and to secure peace and stability for Northern Ireland. The key problem that was revealed by the Hallett report was that, unfortunately, the scheme was not managed in the way that it should have been, and that gave rise to risks. Errors were made, which, unfortunately, could jeopardise future prosecutions.

[Jim Shannon (Strangford) (DUP)]

At a time when yet another OTR is issued a covert letter to escape jail, British soldiers—funded by legal aid—are being investigated for a shoot-out with terrorists which led to the much-deserved deaths of those terrorists. Does the Secretary of State not accept that the legal system and the rule of law are being undermined by the fact that while some individuals are not being charged for their terrorist activities, British soldiers are being investigated?

[Mrs Villiers]

For some, confidence in the legal system has been shaken by the OTR scheme. But that is a reason to be very clear that it was not an amnesty; it never was. It was a scheme designed to ensure that individuals who were not wanted by the police were told that that was the case as a matter of fact at a particular point in time. It is important that the scheme is described in such a way to provide as much reassurance as possible to the people who have been understandably distressed by what has happened.

Corporation Tax (Northern Ireland) Bill

Jim Shannon Excerpts

Tuesday 27th January 2015 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this debate, and I thank the Government for bringing the Bill before the House under the Stormont House agreement. Obviously, the DUP is in favour of the Bill. We have concerns about its delivery, but we are committed to the devolution of corporation tax. I thank the right hon. Member for North Shropshire (Mr Paterson) for his contribution. I understood it was his baby back when I entered the House. He always says it was a team effort, but certainly every conversation we ever had when he was Secretary of State was about corporation tax. It is good to see it being delivered; I am sure he is especially pleased.

The power to set our own rate of corporation tax could be a game changer for the economy, if done right, and could help to create thousands of jobs. My hon. Friend the Member for East Antrim (Sammy Wilson) said that 37,500 jobs could come out of it. I am not sure how accurate that figure is, but if that is the potential figure, there is clearly an opportunity here to do something significant, diminishing our reliance on the public sector and generating wealth for our citizens. For years now, we have faced difficult economic circumstances, with people forced to tighten their spending and unemployment rising, and this has the potential to deliver what we need.

I made it my business to speak to business men—mostly in my constituency—and gauge their opinion about the devolution of corporation tax, and there was a general feeling in favour. They were keen because they could see the benefits coming through to them, but they saw that it was a 10-year plan and that it might take some time to get to where we wanted to be, and they had concerns about how it would be delivered over that period. They also had concerns about the planning system in Northern Ireland—the hon. Member for South Down (Ms Ritchie) mentioned fast-track planning. We have to do something because the planning system is so slow and cumbersome it defies belief.

Although unemployment rates are better in Northern Ireland than in the Republic, we have always struggled to compete with the latter’s attractive corporation tax level, as the shadow Secretary of State pointed out earlier, and it is little wonder, given that its tax rate is 12.5%, compared to our 21%. The ability to set our own tax rate will make that a thing of the past and put us in a better place to compete with the Republic of Ireland, as well as with our Scottish, Welsh and English counterparts. Competition is vital for any economy and ours is no different, so naturally anything that will assist us is most welcome. Devolving corporation tax has the potential to do that.

Allowing us to set our own rate of corporation tax is supported by all five parties in Northern Ireland, as well as the parties in this place. Clearly the benefits are recognised by all. As the Secretary of State has said, it would provide a major incentive for domestic businesses to invest further in Northern Ireland and significantly increase foreign direct investment. That is what we want: real jobs for our people. Given that we share a land border with a jurisdiction with significantly lower corporation tax, this measure has the potential to create thousands of new jobs and stimulate growth in Northern Ireland’s private sector, leading to a stronger, more stable and more lucrative economy.

We have already witnessed change in the last five years in Northern Ireland. In fact, we have already seen a large number of foreign and domestic businesses opening and expanding into our Province. That is great, but we need more opportunities and better employment. We want to encourage more businesses to open up and enjoy the benefits and fantastic work opportunities that Northern Ireland has to offer. Belfast has been described as a small city with a big heart, and it certainly is the up and coming place to invest. That said, however, sometimes big businesses need that little bit of extra motivation. If a low corporation tax rate does not help them to make their minds up, I do not know what will. It would certainly put us on a much more even playing field with the Republic of Ireland, with which we share a land border.

I want to make a quick comment about connectivity and the importance of the air corridor between Heathrow and Belfast City and Belfast Aldergrove. We want to ensure that it is put in place in such a way that we can be part of growing the economy. Just last night, the talk on the news back home was about the new rail links between Belfast and Dublin—to increase their connectivity and, I would suggest, take it away from Northern Ireland. I am concerned that we need to match our neighbour when it comes to those things.

There is no doubt about the benefits that devolving corporation tax will bring, but there are several things we need to consider before its implementation. Fortunately, we have until 2017 to make this a reality. That gives us the time to ensure that when corporation tax is devolved, we have the necessary resources in place to take best advantage of it. My main aim is to see unemployment fall. I believe that the best way forward, coupled with lower corporation tax rates, is for the Department of Employment and Learning to develop a way for students to get real jobs. That might mean creating more apprenticeships, promoting particular skills and helping young people to get experience in the workplace through courses in schools and techs.

Our colleges are working to try to ensure that people are qualified, experienced and able to take up employment opportunities, but I sometimes think that the further education colleges and businesses—with the opportunities that will come off the back of this—need to work more closely together. I understand that we have a dearth of engineers in Northern Ireland. Again, something needs to be done about that. So many young constituents come to me with concerns about getting jobs or houses, because although they have hard-won degrees, diplomas and certificates, they cannot get the necessary experience. I have no doubt that if further education colleges and schools create policies to march alongside tax policies, including on corporation tax, we will see much lower unemployment rates among our young people. That has to be a priority.

I also want to see real reductions for businesses. The week before last, I was talking to a business man who runs a very successful company in my constituency, Mash Direct, which employs 170 people—I understand that the Secretary of State took the opportunity to visit the factory. The company produces simple but attractive foodstuffs and has increased its work force. However, he told me that it was cheaper for him to import vegetables rather than grow his own—he has his own fields round there and is also co-operative with the farmers in trying to ensure that the products he uses for his factory are grown locally. However, he can buy vegetables from south America for less than it costs to grow them in a field in Newtownards. That is ludicrous. Devolving corporation tax will help him to compete better, and that is an advantage. While being ever mindful of better rates for businesses, we need to ensure that there is something in place to protect those who have these issues.

The agri-food business is important in my constituency. Pritchitts, Willowbrook Foods and Rich Sauces are all companies that have thrived over the last few years, employing almost 1,000 people between them. We also have the Akin pharmaceutical industry. These are businesses that have grown over the last few years, and the change in corporation tax will help that growth to continue, which is their ambition, and to employ more people.

I have been approached by many business owners in my constituency, some of whom use their buildings and are delighted at the announcement on devolved tax power, while others are extremely concerned because they do not use their premises. There needs to be some sort of protection or exemption clause for such people. That needs to be considered in the next two years, because we cannot expect business owners to pay corporation tax on vacant properties; that would be unfair. Instead of promoting the economy and creating more jobs, it could have the reverse effect, particularly when Northern Ireland is made up of so many small and medium-sized enterprises—30,000 micro-businesses to be precise, which is 89% of our community. Although we want to encourage big business, we do not want to forget about those who account for such a large part of our economy.

Let me express one more concern that I feel needs to be addressed before implementation in 2017. This is not something that will be unique to Northern Ireland, as it has been raised across the United Kingdom, but I am referring to the issue of holding companies. The hon. Member for Amber Valley (Nigel Mills),who spoke in the diverted profits tax debate in Westminster Hall, asked me about this matter. The issue is clear: we do not want to see a brass plate on an office that is lying vacant; we want to see jobs. It is the jobs that grow the economy and bring in the wages, which then brings money to the Treasury through tax. That is what we want to see. This is an issue of great concern.

A company may come into the United Kingdom and open a holding company in Northern Ireland. This means that it could put any profits made elsewhere back into the Northern Ireland branch, saving on corporation tax. Concern about that was expressed in the Westminster Hall debate. Big US companies such as Starbucks, Google and Amazon have all been accused of tax dodging entirely or of paying considerably less than they should. What steps will be taken to ensure that this same practice does not happen with corporation tax in Northern Ireland?

Undoubtedly, I believe that the benefits outweigh any drawbacks, but in order fully to profit from this proposal, the issues I have raised need to be addressed. I am hopeful that, with this legislation, Northern Ireland can become even more successful and really begin to compete in the business sector on the world stage.

Stormont House Agreement

Jim Shannon Excerpts

Wednesday 7th January 2015 Commons Chamber

[Mrs Villiers]

The hon. Lady makes an important point. The agreement will help partly by providing extra funding for institutions that are doing work on the past that is currently done by the PSNI, but the financial annex attached to the financial package also contains an obligation on the Executive to do what they can to minimise reductions in police funding. Given the financial realities, it seems inevitable that there will be reductions in PSNI funding to some degree, but the UK Government would certainly like these to be kept to an absolute minimum, which is why it is in the financial annex to the agreement.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for her statement and for all the hard work that she and many others did to achieve the Stormont House agreement. We in the Democratic Unionist party ensured that the bedroom tax would not be implemented in Northern Ireland thanks to the flexibilities and the top-ups that we secured through the Northern Ireland block grant. Sinn Fein, of course, opposed that, but they never turned up in this Chamber to vote against it. However, this time Sinn Fein have joined with the DUP to agree a deal, which means that there is now no obstacle to a revised welfare reform Bill for Northern Ireland. Can the Minister set out the time scale for welfare reform in Northern Ireland and the legislative process through this House?

[Mrs Villiers]

I thank the hon. Gentleman for his comment. It is a hugely important step that the five parties reached an agreement on a way forward on welfare reform. It is indeed a matter for the Northern Ireland parties that they have applied the top-up in relation to certain matters, including the spare room subsidy, which they are funding through their block grant. It is now vital that progress is made on implementing welfare reform as soon as possible, so that we can press ahead with the rest of the agreement.

Oral Answers to Questions

Jim Shannon Excerpts

Wednesday 29th October 2014 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

8. What steps she is taking to ensure that the change in Northern Ireland’s unemployment rates is similar to that of the rest of the UK.

[The Secretary of State for Northern Ireland (Mrs Theresa Villiers)]

Northern Ireland’s claimant count has fallen for 21 consecutive months, which shows that the Government’s long-term economic plan is working. The latest labour market survey shows that the level of unemployment in Northern Ireland is 6.1%, which is only marginally higher than the United Kingdom figure.

[Jim Shannon]

As the Secretary of State well knows, unemployment has been reduced in parts of Northern Ireland, but we can do more. The agri-industry in my constituency can provide more jobs if it is helped to do so, and the same applies to the pharmaceutical industry and tourism. What can the Secretary of State do, along with other Ministers here on the mainland, to enable those sectors to expand and provide more employment for young people and those aged over 50?

[Mrs Villiers]

One of the main ways in which we can help is through the tax system. That is why we have cut corporation tax, which will be the lowest in the G20 by April, and why we are cutting job taxes for employers for the benefit of, in particular, young unemployed people. We think that it is vital for more people to have the security of a pay packet to take home to their families, and our tax policy has been driven by that.

--- Later in debate ---

[The Prime Minister]

I am grateful to my hon. Friend for bringing that to the House’s attention. The fact is that the claimant count in his constituency of The Wrekin is down by 40% over the past year alone, and we now have 2 million more people employed in the private sector since the election. As I said at the outset of Prime Minister’s questions today, the figures for the fall in the number of workless households—homes where no one has been working—including homes with children, are not just statistically important; it is a socially and morally important fact that children will grow up in homes where someone is working. The employment rate for lone parents has also gone up. [Interruption.] I know that Labour Members do not want to hear good news, but the fact is that, because our long-term economic plan is working, we are getting the British people back to work.

[Jim Shannon (Strangford) (DUP)]

Q11. I know that the Prime Minister, like me and the rest of the Democratic Unionist party, is fully committed to the full implementation of the military covenant. Why, then, have the Government failed to keep records for all the 30,000 personnel who served in Afghanistan and returned to the United Kingdom of Great Britain and Northern Ireland, many of whom came back with injuries that should have been given priority for treatment under the military covenant? What steps will he take to rectify that situation?

[The Prime Minister]

As the hon. Gentleman knows, we want to see the military covenant honoured properly in every part of the United Kingdom, including Northern Ireland, and I am happy to help with that. On the issue of how we keep in touch with veterans, I think that we have made some breakthroughs. The veterans information service now contacts all those who have been discharged from the armed forces a year after they leave, as set out by my hon. Friend the Member for South West Wiltshire (Dr Murrison) in his report. We are copying from the best countries around the world on how we help our veterans, and because we are taking the LIBOR funds—multimillion pound funds from the City—and putting them into veterans charities, there is real money to support our veterans.

JTI Gallaher

Jim Shannon Excerpts

Monday 27th October 2014 Commons Chamber

[Ian Paisley]

The European tobacco directive has undoubtedly helped to kill this industry, but let us be absolutely clear: the betrayal of the Government in putting in place plain packaging has said to an entire industry, “There’s no point staying in this country. There’s no point continuing to manufacture in the United Kingdom.” All it has done is driven—and it will continue to drive—those jobs to eastern Europe while cigarette smoking continues in Northern Ireland.

[Jim Shannon (Strangford) (DUP)]

Europe clearly has a reason for the directive that is coming through, but does my hon. Friend recognise the good work MEPs Diane Dodds and Jim Nicholson did on behalf of JTI? Does he think Europe could have done more, and does he feel that the Minister should have more interaction with Europe?

[Ian Paisley]

My hon. Friend raises an interesting point which I want to address slightly later by talking about how Europe has played a devastating role in this development.

Hallett Report

Jim Shannon Excerpts

Tuesday 9th September 2014 Commons Chamber

[Mrs Villiers]

I can assure the hon. Lady that I have had many discussions about their resources with the Department of Justice and the PSNI, and indeed with the Department of Finance and Personnel. It is a difficult situation; the hon. Lady raises a very good point about the allocation of responsibility for funding the ongoing work. The reality is that these are now matters for the criminal justice system, so it is within the remit of the Director of Public Prosecutions and the PSNI. The lines between national security work and the rest of the criminal justice system are always blurred, which is why the Government have provided substantial additional funding to the PSNI to reflect the particular circumstances it faces. We have confirmed that for the current spending review and for 2015-16. This, of course, is an important part of ensuring that the PSNI can do its job both in current policing and on legacy matters.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State for the much improved statement and for the Hallett report, which was very clear about the letters of comfort. As the statement says, “the letter recipients should cease to place any reliance on those letters.” Will the Secretary of State confirm that those in other jurisdictions, such as the Republic of Ireland, should be made aware that if they cross the border into Northern Ireland or appear on a flight at Heathrow or elsewhere in the United Kingdom of Great Britain and Northern Ireland, they will be detained? Will she indicate the exchange of information between the PSNI and the Garda Siochana in order to catch those responsible wherever they may be?

[Mrs Villiers]

I assure the hon. Gentleman that individuals coming from whatever part of the world will be treated on the basis of the evidence and the assessment if it is available today. If that evidence justifies arrest, that is what will happen. The relationship between the PSNI and the Garda Siochana is perhaps stronger than it has ever been; levels of co-operation deepen year by year. They work extremely well together on pursing offenders either side of the border. I am sure that that will continue in respect of all individuals, regardless of whether they possess a letter under the scheme.

Massereene Barracks Shooting 2009

Jim Shannon Excerpts

Tuesday 2nd September 2014 Westminster Hall

[The Parliamentary Under-Secretary of State for Northern Ireland (Dr Andrew Murrison)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I commend the right hon. Member for Tottenham (Mr Lammy) on securing this important debate.

I begin by offering my sincere condolences to the families of both Sapper Patrick Azimkar and Sapper Mark Quinsey. My right hon. Friend the Secretary of State for Northern Ireland met Patrick’s parents recently. I know that they are taking a close interest in today’s proceedings, and that my right hon. Friend was deeply moved by the account that they gave. Their personal strength and dignity at this difficult time is remarkable. Five years on, I am sure that the pain that they have suffered will not be erased. It is a particularly cruel irony that two fine young men should be struck down on home soil just as they were preparing to serve their country in Helmand.

Before I address the points raised in the right hon. Gentleman’s speech, I assure the House that this Government take the threat posed by terrorists extremely seriously. Northern Ireland-related terrorism is a tier 1 risk in the national security strategy, meaning that it is of the highest priority to this Government, as it was to the Government in which the right hon. Gentleman served. Five years after the Massereene shootings, the threat level remains at “severe”. However, progress has been made, as I am sure many of the hon. Members here will attest. As a result of the sterling and often unsung work of the Police Service of Northern Ireland and MI5, working in close co-operation with police in the Republic of Ireland and others, lives are undoubtedly saved and the ill intent of violent criminals thwarted or mitigated.

[Jim Shannon (Strangford) (DUP)]

Some of the names of those involved in the murder have been mentioned. David Jordan, who is in prison in the Republic, has also been mentioned. A European arrest warrant has been issued for him on his release from prison. Can the Minister confirm that all of those allegedly involved in these murders, in the Republic of Ireland or wherever they may be, will be brought to justice?

[Dr Murrison]

That is clearly the firm intent of both the Westminster Government and the Northern Ireland Executive. Violent terrorists, wherever they are, must be called to account. I know that all the agencies that I have mentioned, and others, are bent on ensuring that such wicked individuals are brought to account and face the full rigour of the law, wherever they are.

Hallett Review

Jim Shannon Excerpts

Thursday 17th July 2014 Commons Chamber

[Madam Deputy Speaker]

Last but not least, Jim Shannon.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State for her statement and her comments that she would have stopped it immediately if she had known. I am conscious of the victims; those are the people I think about. Kenneth Smith, an Ulster Defence Regiment sergeant, was killed on 10 December 1971. His killers escaped across the border. The IRA killer of Lexie Cummings walked out of court and straight across the border and has not returned. Four UDR men were killed at Ballydugan. Eight people were arrested, but none was charged. Some of those are now across the border. The murderers in the La Mon massacre at Castlereagh have also skipped across the border and have risen to prominence in business and political life in the Republic of Ireland. Will the Secretary of State tell us when she will have discussions with the Prime Minister in the Republic of Ireland to ensure that the investigations that will take place in Northern Ireland will mean that those down south who think they have escaped will be apprehended and made accountable?

[Mrs Villiers]

The hon. Gentleman will appreciate that, contrary to the position in the past, decisions on extradition are now taken by independent police and prosecuting authorities. On that basis, it would be inappropriate of me to raise specific cases with the Government of the Republic of Ireland.

Oral Answers to Questions

Jim Shannon Excerpts

Wednesday 16th July 2014 Commons Chamber

[Dr Murrison]

I am grateful to the hon. Lady for that. She will of course have seen today’s figures, which show that although youth unemployment in Northern Ireland is 20.4%—that is too high—it has dropped by 2.1% over the quarter. I am sure she will warmly welcome both that and the drop by 1% to 6.7% in the overall level of unemployment in Northern Ireland—the 18th successive drop in the claimant count. I hope she warmly welcomes that, as right hon. and hon. Members from across the House certainly will.

[Jim Shannon (Strangford) (DUP)]

Young Protestants in Northern Ireland are experiencing great difficulty in seeking employment. Will the Minister confirm the steps that the Government are taking to help those Protestant youths gain worthwhile skills, training and employment?

[Dr Murrison]

The hon. Gentleman is absolutely right. We need to work at school level and to build the number of apprenticeships in Northern Ireland to ensure that the figure to which I have referred, which remains too high—albeit fairly good in comparison with many other countries in Europe—comes down dramatically.

Oral Answers to Questions

Jim Shannon Excerpts

Wednesday 11th June 2014 Commons Chamber

[Mrs Villiers]

It is not generally Government practice to comment on sensitive operational matters such as those, but I acknowledge that the use of informers is an important means of combating crime and terrorism.

[Jim Shannon (Strangford) (DUP)]

4. What steps she has taken in conjunction with the Northern Ireland Department of Enterprise, Trade and Investment to attract jobs to Northern Ireland by promoting its film industry.

[The Minister of State, Northern Ireland Office (Mr Andrew Robathan)]

Economic rebalancing is essential and we fully support it through our economic pact with the Executive. Creative industries are an essential element worth half a billion pounds annually, and Invest NI and UKTI both strongly promote them. My right hon. Friend the Secretary of State has met HBO—Home Box Office—at Hillsborough and in America to promote Northern Ireland as a destination of choice.

[Jim Shannon]

The popular TV series “Game of Thrones” was filmed in my constituency and is watched by more than 2 million people—there is no better place to have a film made than Strangford. The Northern Ireland screen budget has recently been raised by £43 million, which will raise a further £194 million for the local economy. What steps has the Minister taken to ensure that the local South Eastern Regional College, based in Newtownards, will have the skills and training to increase the economy even more?

[Mr Robathan]

The skills are best dealt with by the people of Northern Ireland and the college. I visited “Game of Thrones” in Paint Hall in Belfast and was very impressed. Carla Stronge, of Extras NI, is quoted in the Belfast Telegraph today:

“When I started up in 2007 there were just two people working in my company. Since Game of Thrones started, I have had to take on more people and now there are 11 people working for me”.

We fully support that. I saw the castle in Strangford that is used in “Game of Thrones” only last week.