Northern Ireland Budget (No. 2) Bill

Karen Bradley Excerpts

2nd reading: House of Commons
Monday 9th July 2018 Commons Chamber

[The Secretary of State for Northern Ireland (Karen Bradley)]

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

The Government have been working intensely to restore devolved government in Northern Ireland since the collapse of the Executive last year. It is deeply regrettable that, despite efforts, the political parties in Northern Ireland have not yet reached an agreement that would enable devolved government. In the absence of an Executive, the Northern Ireland civil service has worked, and continues to work, with the utmost professionalism and commitment to protect and preserve public services in the interests of all communities in Northern Ireland. I commend their efforts.

Many hon. and right hon. Members will have seen the ruling from the High Court last week regarding the Buick judgment. I want to reassure all Members that the Government have noted that ruling and are considering it carefully. As our track record shows, in the absence of an Executive, the Government have already taken, and are committed to take, a number of limited but necessary steps to ensure good governance and to protect the delivery of public services in Northern Ireland. That included providing certainty for Northern Ireland finances with my budget statement to Parliament on 8 March.

[Lady Hermon (North Down) (Ind)]

The Secretary of State has quite rightly made reference to a very significant judgment last week in relation to the incinerator in County Antrim. Will she indicate whether the Government intend to appeal that decision yet again?

[Karen Bradley]

We are considering the position. The judgment was received at 9.30 am on Friday. There has been a little bit going on over the weekend, but we are working very hard on that, and we will ensure that we come to the House with our conclusions and decisions. That decision was not the one that we wanted, and we will obviously consider our position.

[Emma Little Pengelly (Belfast South) (DUP)]

I welcome the fact that the Secretary of State is considering the judgment, which deals with a big decision made by a permanent secretary—a civil servant. However, that situation does not accurately reflect the fact that hundreds of decisions across all the Departments are not being made, and cannot be made unless there is a Minister in charge to make them.

[Karen Bradley]

We need to consider the exact implications of the judgment that we received on Friday. When we have reached our conclusion, I will of course come to the Chamber, when I will be happy to debate it with the hon. Lady, who I know has a particular interest in and knowledge of that issue.

The budget statement that I made to Parliament on 8 March set out headline departmental allocations for the 2018-19 financial year, helping to safeguard Northern Ireland finances by enabling the Northern Ireland civil service to manage and maintain public services throughout the early months of this financial year. This budget Bill seeks to build on that certainty.

As I advised the House on 20 March, the budget position and the vote on account provision approved by Parliament in the Northern Ireland Budget (Anticipation and Adjustments) Act 2018, which provides authority to the NICS to access up to 45% of the previous year’s allocations to allow day-to-day spending in the early months of this financial year, was the first step in the budget-setting process. Further legislation is now required to put that budget position on a legal footing and to provide the legal authority for the NICS to access the full level of funding available for the whole financial year. Without the Bill, the only way for Departments to access cash is for the NICS to make use of emergency powers under section 59 of the Northern Ireland Act 1998, although those powers, too, are limited.

[Lady Hermon]

The Secretary of State is being very generous by allowing me to intervene once again. She will be well aware that the Prime Minister has just completed a lengthy statement to the House on Brexit and what the then Cabinet agreed on Friday. I was particularly struck by the fact that the Prime Minister indicated that the preparations for a no-deal scenario would be intensified— “stepped up”, to use her words. In those circumstances, will the Secretary of State confirm that the Chief Constable of the Police Service of Northern Ireland will have the resources he needs, including additional police officers, to deal with the policing implications of a no-deal scenario?

[Karen Bradley]

The hon. Lady is nothing if not persistent. She quizzed me extensively about that matter at the Northern Ireland Affairs Committee on Wednesday. As I said to her then, we have received the Chief Constable’s recommendations and are considering them across Government. She is right to say that we are stepping up no-deal planning, as the Prime Minister stated. It is also worth saying that the deal agreed by the Cabinet at Chequers is one that works for the whole United Kingdom. It is very important, from a Union point of view, that we have a deal with the European Union that ensures that our red lines for Northern Ireland of no hard border on the island of Ireland and no border on the Irish sea are adhered to.

[Ian Paisley (North Antrim) (DUP)]

Is the Secretary of State confirming effectively to the House that the financial shortfall identified by the Chief Constable will now be met by additional resources, as required by the Chief Constable when he met the Northern Ireland Affairs Committee?

[Karen Bradley]

The hon. Gentleman is also persistent in his questioning. As I said last Wednesday in front of the Select Committee, we have received the Chief Constable’s report and are looking at it.

The emergency powers under section 59 of the 1998 Act are intended to be used only in the absence of more orthodox legal authority. I do not consider those emergency powers to be appropriate for managing Northern Ireland finances for a second financial year.

[Nigel Dodds (Belfast North) (DUP)]

Before the Secretary of State leaves the issue of security and preparations for a no-deal exit from the European Union, I am sure she will remember that at the meeting in Downing Street with the Prime Minister and herself, the leader of my party and I presented to the Prime Minister directly information supplied by the Chief Constable of the PSNI on the issue of extra resources. As well as dealing with the issues that have rightly and properly been raised at the Select Committee, it is important that she recognises that the Prime Minister herself made a commitment to look very carefully at that issue, and we expect an early answer on it.

[Karen Bradley]

For clarification, the report I am referring to is precisely the one presented to the Prime Minister by the right hon. Gentleman and the leader of the Democratic Unionist party. We have received it and are considering it across Government, as we rightly should in that situation.

This Bill seeks to put the budget position I set out in March on a legal footing. It does not direct the NICS Departments on how to use these allocations. In the absence of an Executive, it remains for Northern Ireland Departments to implement their budget positions. How Northern Ireland Departments will allocate their budgets is set out in the detailed NI main estimates Command Paper. Passing this budget Bill does not remove the pressing need to have locally accountable political leaders in place to take the fundamental decisions that will secure a more sustainable future for the people of Northern Ireland.

I will now turn to the Bill itself. The Bill authorises Northern Ireland Departments and certain other bodies to incur expenditure of up to £8.9 billion and use resources totalling up to £9.9 billion for the financial year ending on 31 March 2019. While this is a technical budget Bill, I do not dismiss the constitutional significance of Parliament having to deliver this for Northern Ireland. I therefore draw Members’ attention to two important issues that do not form a part of the Bill expressly, but will be of interest to Parliament as we debate the Bill. First, as I highlighted in my March statement, this budget includes a further £410 million of UK Government funding that flows from the confidence and supply agreement. That is in addition to the £20 million already released in 2017-18 to help to address immediate pressures in health and education.

[Paul Girvan (South Antrim) (DUP)]

On the back of the court judgment that was reinforced last week, which has made it virtually impossible for NI civil servants and permanent secretaries to move forward and even to spend the money that they will have, we fear that the confidence and supply money will not be allocated or used correctly if we cannot get decisions pushed through. The only people who can do it are this Government here, because there is no Executive in Northern Ireland to deal with it.

[Karen Bradley]

As I made clear in my earlier remarks, we are very aware of the Buick judgment and are considering that decision. In respect of specific items of spending allocated from the confidence and supply money, we are looking carefully to ensure that if ministerial decisions are required, we know what decisions are required and how we would go about taking them. To be clear, there is no difficulty in spending the money that has been allocated so far. As and when there becomes a difficulty, we will of course be ready to take actions as necessary.

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

On that point, may I appeal to the Secretary of State, particularly in relation to education? I know from talking to schools in my constituency that the additional funding we envisaged would go to the frontline and the chalk face—to the schools—is not seeing its way through. It is being used to plug gaps in the Education Authority’s budget, not in schools’ budgets. This is something we feel it is very important for the Secretary of State to examine and to press home.

[Karen Bradley]

I assure the right hon. Gentleman that we examine all such points. If he wishes to write to me specifically on the instances he has learned about, I will be more than happy to have officials in my Department speak to those in the NICS to establish what has happened. We are very clear where the money needs to be spent. It was agreed in the confidence and supply arrangement, and we are taking the steps that we need to take to ensure the money is spent as intended.

I want to be very clear that this Bill is not legislating for the £410 million. That was approved by Parliament for release as part of the UK Supply and Appropriation (Main Estimates) (No.2) Bill, while this Bill gives the NICS the authority to allocate that funding. More detail on funding allocations is contained in the supporting Command Paper. Just to be clear, we are following on from the estimates process on which we voted in the Chamber last week. On Tuesday evening, we voted to make sure that the Northern Ireland block grant was properly allocated. Today, we are in effect carrying out the estimates process that would normally be done at Stormont. In the absence of Stormont, we are dealing with this through primary legislation here.

[Ian Paisley]

I appreciate what the Secretary of State is saying, and yes, by and large, that is exactly what is happening, but it is not quite as benign as that. The Secretary of State has personally signed off a change in the budget by which £100 million has been taken from capital spend to revenue spend. Civil servants are of course very delighted about that, because some of it will go towards redundancy packages for them, but that is not the point. The Secretary of State has taken the decision on advice, so why does she not take the other decisions that are necessary to make Northern Ireland function?

[Karen Bradley]

I said that the hon. Gentleman was persistent. The decision to allocate spending from the capital budget to the revenue budget was taken to make sure that the budget balanced. It was taken after consultation with all the main parties in Northern Ireland, which all understood that that decision was taken to ensure that the budget balanced and that additional revenue raising from the people of Northern Ireland was not required.

Let me turn to the second important issue to which I would like to draw the attention of the House. As well as placing all Northern Ireland Audit Office audits and value for money reports and the associated departmental responses in the Libraries of both Houses—to be accessible and visible to all interested Members and Committees—I will also write to the main Northern Ireland political parties to highlight the publication of the reports and encourage them to engage with the findings. This is as robust a process as is possible, but the best form of overall accountability and scrutiny of Northern Ireland public finances would of course be that undertaken by a fully functioning Executive and a sitting Assembly in Northern Ireland.

[Sir Mike Penning (Hemel Hempstead) (Con)]

I am sorry to intervene in these sensible discussions, but the Secretary of State has been very generous in taking interventions. Surely one way in which the budgets could be balanced—this would be better and might provide a bit of impetus—would be if the salaries of those in the Assembly who are not doing their jobs were suspended. Perhaps we would get a little bit of movement, and we might have some spare money for the Department of Education.

[Karen Bradley]

That point has been raised with me on a number of occasions. My right hon. Friend will know that I legislated to stop the increase in salaries that would have happened automatically on 1 April, and we are considering the position with regard to ongoing salaries. I know that he will be surprised, but I am afraid that even cutting Northern Ireland Assembly pay would not quite reach the figure of £100 million that we needed to reallocate from capital to revenue.

[Nigel Dodds]

I am sure the right hon. Member for Hemel Hempstead (Sir Mike Penning) will be very interested to hear the much more substantial amounts that would be saved if we cut payments to Members who do not take their seats in this House. Since 2005-06, £1,023,334 has been paid to date in representative or equivalent Short money to Sinn Féin Members who do not take their seats, and they have got £4,165,000 in office costs and staffing allowances for not doing their jobs here. That has been tolerated by the Northern Ireland Office and by this House for a lot longer than there has been an issue of pay for Members of the Legislative Assembly. I am all for dealing with the issue of MLA pay, but let us deal with Sinn Féin issues as well.

[Karen Bradley]

I have to say that this is not a matter for which the Northern Ireland Office has responsibility, as the right hon. Gentleman knows. This is a matter for the House, because those allowances are paid from the House. I encourage all right hon. and hon. Members who feel strongly about that matter to take it up with the House authorities.

The UK Government remain absolutely committed to providing Northern Ireland with good governance and stability while we continue our efforts to restore devolved government at the earliest possible time. The people of Northern Ireland deserve strong political leadership from a locally elected and accountable devolved Government, and that remains my firm priority. In its absence, however, the UK Government will always deliver on their responsibilities for political stability and good governance in the United Kingdom. On that basis, I commend the Bill to the House.

[Tony Lloyd (Rochdale) (Lab)]

May I begin—I think the whole House will be united on this at least—by condemning the sectarian violence over the weekend in Derry/Londonderry? This has no place in Northern Ireland today. We thought that we had turned our back on that kind of activity.

Let me make it clear from the outset that, although the process of delivering this budget legislation is perhaps an extraordinary one, we certainly do not intend to stand in its way, but we have to raise questions about the nature of the legislation. There is no doubt that bringing forward this budget is a political decision, and it needs to be made crystal clear—I hope both the Secretary of State and the Minister in replying will do so—that this is not part of creeping direct rule. It is important that we establish the point that this is not part of creeping direct rule.

This is a truncated debate and scrutiny is, by its nature, limited. Were we to do the budgetary process for the United Kingdom in this way, the House would quite rightly be incensed. I accept the Secretary of State’s comment that this is almost the last possible time such a budget can be delivered and that it is time-sensitive. However, in that context, the Secretary of State has already referred to consulting the various parties, and the hon. Member for North Antrim (Ian Paisley) has raised a decision that the Secretary of State has made. It is important to record how that consultation took place. In particular, at what point did she consult all the five major political parties—the Assembly parties—because that is an important test of the legitimacy of the decisions within the budget?

[Karen Bradley]

I am very happy to put that on the record, but I also join the hon. Gentleman in his comments about the violence we saw at the weekend in Derry/Londonderry. I confirm that unusually—I would not normally do this in relation to any legislation or statements in the House—I made sure that all the main parties in Northern Ireland saw the budget proposals before they were finalised, and they were not presented to the House until all five parties had seen them.

[Tony Lloyd]

I am grateful for that clarification, although I may return to that point later in a different context.

Nevertheless, there is still a question of accountability. In the end, accountability is a function of adequate scrutiny—not simply of the budgetary process at this stage, but of the spending that takes place afterwards. I ask both the Secretary of State and the Minister to consider very closely what the role can now be of the Northern Ireland Audit Office. It is one of the few bodies that has legitimacy, but its legitimacy is itself challenged by the lack of a functioning Executive and Northern Ireland Assembly. However, the Audit Office is certainly one of the few bodies that can put information into the public domain and exercise some stewardship of the spending that takes place and value for money, which is so important in any form of Government spending.

Real questions must also be asked about the way in which decisions are made on spending more generally as the political logjam in Northern Ireland—the lack of a power-sharing Assembly—quite frankly turns such decisions bit by bit into some areas of enormous difficulty and some areas of crisis. The hon. Members for Belfast South (Emma Little Pengelly) and for South Antrim (Paul Girvan) have made points about the recent decision concerning the Mallusk incinerator. The Secretary of State herself mentioned the situation, which has now been through the High Court and the Court of Appeal. I must say to her that I accept people were busy on Friday, but considerable work should already have been done on this because it is important to have legal certainty.

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[Karen Bradley]

I apologise if I was flippant in my remarks regarding the weekend. I assure the hon. Gentleman that we did significant work in advance of the judgment. We need to spend time looking carefully at what was said in the hearing and the judgment so that we can ensure that we react appropriately. Of course, I will discuss that with him before any final decisions are taken.

[Tony Lloyd]

I am grateful to the Secretary of State, but there is a difficult question about the capacity of the Northern Ireland civil service to make decisions. The Court ruled in the case of a controversial planning decision that is no longer deemed to be legitimate unless there is a further appeal by whomsoever, but this goes way beyond that case, as Northern Ireland Members have said. We need certainty about how money can be spent, what budgetary headings in the Bill can be transformed into practical decisions and whether the civil service has the capacity to make those decisions.

This is not an abstract, theoretical game. It will be a day-to-day game with the possibility of judicial review taking place on any and every occasion. We need certainty. In the mini-budget in March, the Secretary of State talked about seeking legal advice on how the money can be spent, but we need early certainty on the public record so that civil servants know what their capacity is. Beyond civil servants, we need certainty so that the people of Northern Ireland know how their money can be spent, because difficult and time-sensitive issues are looming.

The hon. Member for Strangford (Jim Shannon) has mentioned the north-south connector on many occasions. The decision in principle has already been taken, so in one sense that ought to be a relatively easy decision, but providing the moneys to make the connector work requires decision making by individuals or a structure that cannot subsequently be challenged in the courts. That is enormously important.

I join the hon. Members for North Down (Lady Hermon) and for North Antrim and the right hon. Member for Belfast North (Nigel Dodds) in their challenge to the Secretary of State on the role of the PSNI. All other things being equal, our country will leave the European Union on 29 March. In her statement earlier, the Prime Minister said that a range of possibilities were being considered, including a no deal outcome. The PSNI Chief Constable has made it clear that that no deal outcome would require further staffing—a serious increase in numbers. I can assure the Secretary of State that that is time-sensitive because it is not possible, even between now and the end of March, to recruit and train 300 new members of the PSNI. It is important to recognise that. It is time-sensitive and, actually, the time is already long overdue.

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[Tony Lloyd]

The hon. Lady’s comments are very helpful. Better than writing, we raised the matter in Northern Ireland questions. I challenged the Secretary of State—I challenge her again today—to recognise the strength of the Chief Constable’s words and demands and to follow words with legitimate action, as the hon. Lady says. That is the right way forward.

We need Government action on a number of other issues raised in the mini-budget debate in March, including the follow-up to the Hart inquiry. The question of historical institutional abuse will not go away, except, sadly, as victims begin to disappear. It cannot be right that victims whose lives were made massively more difficult, and sometimes nearly impossible, have to wait year after year to find resolution to historical abuse. It is important that there is a clear timetable for consultation. I understand the limitations for the civil service, but given the time-sensitive nature of the inquiry for the victims, we need a clear path for the consultation process on the historical institutional abuse inquiry and the future of the Hart inquiry.

That leads me to the question of pensions for victims of the troubles, which is consistently raised. In fact, this is more straightforward for the Secretary of State in that I believe it is possible to fund it through the Westminster purse rather than through the Northern Ireland purse. One way or another, the amounts of money involved—£2 million to £3 million—would be well containable within any budget. Because of the time-sensitive nature of the question—people whose lives were made difficult are growing older and disappearing—we need firm action.

[Karen Bradley]

We have debated this matter a number of times in the House. I share the hon. Gentleman’s desire for a resolution, but he will know that the definition of victim has caused problems in terms of how anyone can assist them. I have asked the Victims’ Commissioner to do a piece of work on the definition of victim so that we can get to a resolution one way or another, which I am sure he will welcome.

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[Sir Mike Penning]

My hon. Friend is absolutely correct. If we are going to have a community police force, and we created the PSNI for that reason—we abolished the RUC and created the PSNI—it has to be a force of all the people. For that reason, I completely agree that politicians on the nationalist side have to step up to the plate. Let us be honest about it: there are Catholics serving in the PSNI, but they are continually under threat.

[Karen Bradley]

I start by apologising to my right hon. Friend—I was not making light in any way of his comments about MLA pay. I know exactly the point that he was making. I also want to put on record my tribute to him as Policing Minister when we worked together in the Home Office. He understood policing in a way that very few Policing Ministers possibly can. I believe that he was Policing Minister when the National Crime Agency started to be able to operate in Northern Ireland, thanks to his work as the organised crime Minister.

Will my right hon. Friend join me in welcoming the news that assistant chief constable Drew Harris of the PSNI has been appointed as the next commissioner of the Garda in the Republic? That is excellent news, and it demonstrates the point that my right hon. Friend made earlier about the whole island of Ireland working together.

[Sir Mike Penning]

I thank the Secretary of State—I must have a moan more often if I get such nice comments. I know Drew really well, and a lot of colleagues in the House will know him well, too. It is a fantastic appointment, and he will do fantastic work for cross-border policing and community policing.

The Garda police very differently from the PSNI, and I have to respect them—theirs is a sovereign state. However, I was about to come on to the point that if we want to recruit the right sort of people more often, from the cross-border areas and cross-party, we must make sure we protect them. One thing that I hope the Secretary of State will raise with her opposite number is that the Garda do not put in place protection in the south for serving police officers from the Garda or from the north. That is a real concern, which was raised with me many times when I was a Minister. If people were coming from the south who needed protection, the only thing that we could do was take them out of the south and bring them into the north, which is obviously wrong. The Garda do not have the same policies as we do and do not support their officers in the same way. That is not a criticism of them—they just do it differently—but perhaps the Secretary of State could raise that point with her opposite number.

I know that others want to speak, and I do not want to drag the debate out.

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[Jim Shannon]

I absolutely support my right hon. Friend.

I will give an example of the activities of some paramilitaries. Just this week in my town of Newtownards, a group of people from outside the Strangford constituency came in and tried to assert their authority. We have to be careful with how that goes. They were having a bonfire. Two guys from another constituency came into Newtownards on Sunday morning and sat there in their very expensive Land Rovers or Jeeps. The price of the two Jeeps would probably be the price of somebody’s house. The assets branch needs to look at what those people are up to, take all the money they earned from criminal activities, and make sure they are accountable for their actions. The quicker that that happens the better.

What we are really saying is that a lot needs to be done. Will the Secretary of State release the funding that is not affected by the Good Friday agreement and save our schools, pay our nurses correctly and secure our community pharmacies, particularly in rural areas? We have kept our end of the bargain. We come to this place and do what is best for our constituents. Will someone please make the decision to do what is best for the people of Northern Ireland? End the stalemate. Allow Northern Ireland to function instead of crippling it with an inability to make decisions, or perhaps the punishment of refusing to do so.

My local businesses are suffering—[Interruption.] Madam Deputy Speaker, the coughing reminds me of your indication to come to a conclusion; I will do so shortly. I just want to say that we need something for our high streets and for the businesses that are struggling to do better.

[Karen Bradley]

May I suggest that the hon. Gentleman’s high street enters the Great Britain and Northern Ireland high street competition that the Government are running? The closing date is in August, and we would very much welcome entries from high streets in Northern Ireland.

[Jim Shannon]

The Secretary of State has given me a challenge. I will certainly take her up on it and ensure that Newtownards High Street will be at the forefront of her paperwork, hopefully before the end of July. Although high streets have done extremely well in the last month and their turnover is up, that is perhaps a wee bit seasonal. We need to do something to bring business back, including by taking legislative steps.

I want to comment on the Irish language. Sometime in life, we have to agree to differ on things, and there is something that we cannot agree on in the Irish language. We do not want the Irish language introduced to primary schools against the will of the majority of students, pupils and parents. We do not want Irish street names up in Saintfield. People in my constituency told me that that was a massive issue for them at the last election. We do not want cross-departmental money wasted on the Irish language when it is not necessary, and we do not want the Irish language in the courts, where there is certainly not a zest and an energy for that. What we do want is the right to have an Irish language; we are not against the idea of it. Some £160 million has been spent on it, so it is very clear that we are not against the idea. At the same time, we do not want an Irish language Act. There will not be an Irish language Act, and the quicker people catch on the better.

Although I thank the Secretary of State for this step, it is not enough. Take control; take us back from the brink of school closures. More money than ever should be available. Take us back from the position in which diabetic pumps are available but no one is trained to use them. Take us back to a functioning Northern Ireland that is not held to ransom by those who will not even take their seats to discuss the funding that all people in Northern Ireland need regardless of their age, sex, political views, religious views or anything else. Northern Ireland needs direction. We look to the Secretary of State for that leadership and direction—please provide it.