Northern Ireland Finances

Karen Bradley Excerpts

Monday 12th March 2018 Commons Chamber

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

With permission, Mr Speaker, I would like to make a statement on Northern Ireland finances.

Last week, I made a written statement in which I explained that the pressures on public services meant that it was imperative for the Government to take steps to provide clarity to enable planning in Northern Ireland for 2018-19. With great reluctance and in spite of my strong preference for a new Executive to set a budget, I set out in that statement the resource and capital allocations that I considered to be the most balanced and appropriate settlement for Northern Ireland Departments. I did this following intensive engagement with the Northern Ireland civil service and consultation with all the main Northern Ireland parties. In the continued absence of an Executive, I have an obligation to take these and any other measures that are necessary to keep Northern Ireland functioning, but I will only take such measures where they are essential, limited in nature and part of a clear and consistent approach by the Government.

This approach is based on a number of principles. First, we remain steadfast in our commitment to the Belfast agreement; all that we do will be with the purpose of protecting and fulfilling the agreement. But, secondly, we will take those decisions that are necessary to provide good governance and political stability for Northern Ireland, consistent always with restoring the Executive and local decision making at the earliest possible opportunity. Thirdly, we will continue to implement our obligations under the agreement and its successors where possible, always working for the good of the community as a whole. Finally, we will continue to work with all the Northern Ireland parties—and with the Irish Government as appropriate—to remove the barriers to restoring the Executive and a fully functioning Assembly.

The principles at the core of the agreement, and the political institutions that it establishes, continue to have our full and unreserved support. We will uphold the principle of consent, consistent with this Government’s support for Northern Ireland’s place within the Union and while maintaining the constitutional integrity of the United Kingdom. We believe in devolution and the imperative for local decision making by local politicians. We support power sharing on a cross-community basis, based on mutual respect and recognition. We will continue to support and facilitate north-south co-operation, including as we leave the EU, while always preserving the economic integrity of the United Kingdom. We will continue to work closely with the Irish Government in full accordance with the three-stranded approach. And we will continue to act fairly and govern in the interests of all parts of the community in Northern Ireland.

The necessary steps that I have taken and will continue to take are consistent with all these commitments. In addition to the steps I set out last week, there are several associated measures required to further secure public finances, which I will be taking forward. As well as cutting costs, securing efficiencies and beginning to take the steps to transform public services, it is right to look at how income can be increased to protect the public services on which the people of Northern Ireland depend. So I will introduce legislation to set a regional rate, which will increase domestic rates by 3% above inflation. This will make an important contribution to sustainable finances in the long run, with the additional funding addressing urgent pressures in health and education.

I intend to act to extend the cost-capping of the current renewable heat incentive scheme in Northern Ireland, which the Assembly had put in place over a year ago. It would not be acceptable to put finances at risk by simply allowing that cap to lapse. I therefore propose to extend it for a further year from 1 April, the minimal possible step to protect the public purse. I will also confirm the final spending totals for the Northern Ireland Departments for the 2017-18 financial year in legislation, to set supplementary estimates.

I believe that the time is right to address the ongoing public concern about MLA pay in the absence of a functioning Assembly. I thank Trevor Reaney, who was instructed by my predecessor to produce an independent view and recommended a 27.5% reduction to MLA pay. I will seek to introduce legislation to take a power to vary MLA pay. Further to that, I am minded to reduce pay in line with the Reaney review recommendation, but I would welcome full and final representations from the Northern Ireland parties before I make a final decision.

These measures—which I take reluctantly, but which are necessary in the absence of a functioning Executive and Assembly—will deliver the stability and the decisions to enable forward planning for the financial year ahead. But I am clear that they cannot provide the local input and fundamental decisions that are needed to secure a more sustainable future for Northern Ireland. My powers as Secretary of State for Northern Ireland are limited. The scope of this House to pass legislation on the devolved issues that matter for Northern Ireland is limited. This rightly reflects the devolution settlement that is in place and to which this Government are committed. But in the continuing absence of an Executive, there are fundamental decisions in Northern Ireland that cannot be taken, scrutinised and implemented as they should be.

That has been the situation for 14 months already, and in the continued absence of an Executive, it would be irresponsible for us not to consider how we might provide for different arrangements until such time as the devolved institutions are back up and running. Alongside this, I continue to keep under review my statutory obligation to call an Assembly election. I would welcome the views and proposals of the Northern Ireland parties and others on how such arrangements—providing for local decision making and scrutiny on a cross-community basis—might be achieved in the continued absence of an Executive and how any such arrangements might work alongside the other institutions of the agreement.

Let me be clear that this in no way affects my commitment to the Belfast agreement, or my commitment to work to remove the barriers to the restoration of devolution. As the 20th anniversary of the Belfast agreement approaches, I am clearer than ever that Northern Ireland needs strong political leadership from a locally elected and accountable devolved Government, and that remains my firm goal. I commend this statement to the House.

[Owen Smith (Pontypridd) (Lab)]

May I begin by wishing the Secretary of State a very happy birthday for today? I thank her for advance sight of her statement. Of course, we saw most of it last week when the Government effectively published the budget for Northern Ireland in a written statement that came out at 5 o’clock on a Thursday evening, and I have to say that I think that is an unsatisfactory state of affairs; it is a bit discourteous to this House and, more importantly, the people of Northern Ireland to announce what is a £10.5 billion budget affecting key services for 1.8 million citizens in such a manner, with no opportunity for this House to question, challenge or, certainly, to amend those allocations, and in the absence of any accountable devolved Government in Northern Ireland. I am sure the Secretary of State would not think that was a suitable way to set a budget for her constituents in Staffordshire or mine in Pontypridd, and I hope she will explain to the House why the Government felt they needed to do it in that fashion.

Dare I suggest, Mr Speaker, that the real reason for this slightly stealthy announcement is that the Government are a bit embarrassed that just days before the Conservative party is going to vote through the latest rounds of cuts for public services affecting citizens in England, Wales and Scotland, the £1 billion partnership with the Democratic Unionist party means that Northern Ireland alone is being spared? We absolutely welcome that investment in Northern Ireland, but we also need to see investment in health and education and other key public services in every part of the UK, not just the bit where the Tories need DUP votes.

Turning to the substance of the budget, the Secretary of State said last week and repeated a moment ago that, in the absence of an Assembly and with decisions being taken by wholly unaccountable permanent secretaries, some fundamental decisions cannot be addressed. We agree, but it seems to me that some pretty fundamental decisions were taken last week by the Secretary of State, and I wonder whether she might answer some questions about them today.

First, on the decision to put up taxes in Northern Ireland through the regional rate, can the Secretary of State confirm whether that was discussed in detail and agreed with any or all of the parties in Northern Ireland? Secondly, in respect of the decision to significantly increase the budgets for some individual Departments, can she explain to the House the reasons for an increase for the Department of Justice of £36 million, or 70%, on last year, an increase for the Department of Agriculture, Environment and Rural Affairs of £40 million, or 110%, on last year’s budget, or the increase for the Department for Communities of £38 million, or 30%, on last year? I am sure that there are good reasons for all those increases and for the significant cuts that are made to some of the administrative Departments elsewhere, but the House and the people of Northern Ireland deserve some explanation why the decisions were made and by whom.

As I said, I welcome the extra resources for Northern Ireland, including the extra £80 million for health and education and the extra £100 million to transform the health service in line with the Bengoa report, but will the Secretary of State spell out how that £80 million on health and education will be divided? Who will make the decision about the appropriate allocation? Is that something that the DUP co-ordination committee will be discussing with the Conservative Government, or has it already been discussed?

The Secretary of State talks about big health reforms, and she will be aware that some of the reforms mentioned in Bengoa and other health plans related to hospital closures and other changes to the configuration of health services. Does she imagine that such big decisions could be taken by civil servants? If not, what exactly is the £100 million to be spent on?

The gravity of the issues at hand and the scale of the decisions being taken merely serve to underline the grave crisis that we face in Northern Ireland 14 months after the Executive collapsed and power sharing ended. I welcome the Secretary of State reiterating her commitment to the Belfast agreement and the principles of consent and power sharing that underpin it, especially in the light of recent attempts by some to undermine the agreement. However, we need more than more tireless activity; we need to see some success in the forthcoming negotiations if we are to get to next month’s 20th anniversary with a real sense of optimism about the future of the agreement and of power sharing.

The Secretary of State was at pains to point out that she does not anticipate any failure in the negotiations, but the House and the country will have been struck by the acknowledgement that she thinks that she may need to consider alternative means of keeping the agreement and political accountability alive in the absence of an Executive. That raises important questions about feasibility, given that some parties will not want to take part in a shadow or other form of Assembly, and about the form of any alternative. It also raises a significant risk, of which I hope she will take particular note. Moving to an alternative form of Assembly would take pressure off the parties to come to an agreement that allows them to re-engage in meaningful power sharing. Does she acknowledge that risk in any shift away from the agreement?

Finally, I urge the Secretary of State to ensure that this is the last time we push through a budget using this unsatisfactory process and the last time that a budget is set by this House and not Stormont, where it ought to be set.

[Karen Bradley]

I thank the hon. Gentleman for his kind words about my birthday. I was not expecting to spend it making a budget statement, but there we go. I join him by saying that I hope that this is the last time that I have to stand at the Dispatch Box having taken such action, because we all agree that such decisions should be taken by locally elected politicians. The people who elected their politicians in Northern Ireland want them to take such decisions. I genuinely believe that those politicians want to take those decisions. There are, as he knows and as we have discussed previously, some issues on which the parties cannot agree, but I believe that we can get to a point at which a devolved Government can get up and running. That is what I am determined to achieve. Everything that I have done and set out today is in line with that aim. I want to see a devolved Government back in Stormont. The decisions that have been taken, while difficult, are those that needed to be taken for the public services, but I have taken them in the light of the fact that I do not want to undermine the constitutional arrangements and devolution settlement in Northern Ireland.

As for timing, the hon. Gentleman will recall that I committed to lay a budget by last week when I appeared in front of the Northern Ireland Affairs Committee the week before last. That is why it was important to get the written statement out last week, and I am here at the earliest opportunity to explain things to the House and to take questions from right hon. and hon. Members. However, it is important to put it on the record that I did not publish the statement until I had had the chance to show it to all the main parties represented at Stormont and until they had had the opportunity to see the allocations. My fervent hope is that they will actually deliver the budget, which is why it is important that they were all consulted on the work that had been done.

I pay tribute to my officials and the civil servants of the Northern Ireland civil service. They have worked incredibly hard and selflessly to help to deliver the budget in a way that is uncomfortable for many. They want political direction from politicians, and it is difficult for them to do without it. They have gone above and beyond anything that we would expect of civil servants.

As for the decisions on the allocations, I looked at the key Departments. The hon. Gentleman asks about Justice, and I wanted to ensure that there was money to protect the policing budget, which he will recognise is very important. He asked about the £100 million from the confidence and supply arrangement for health transformation. That was money that the Government recognised and agreed needed to be spent in Northern Ireland because of its unique circumstances. I actually visited the hospital in Derry/Londonderry only last Monday and met consultants and managers, and it was clear to me that health transformation is a priority and that we need to ensure that the money is spent. I have taken legal advice to ensure that the money goes towards the priorities on which it is designed to be spent.

The hon. Gentleman asks about the alternative approaches, and he will know that many have suggested ways to arrange some form of functioning Assembly or scrutiny at Stormont. I am considering all the suggestions, a number of which have been made by the parties, and I would welcome further suggestions. I am taking legal advice on them all, because I do not want to do anything that undermines what we have achieved in the 20 years since the Belfast agreement. However, if there is a way of getting ourselves back on the road to a functioning devolved Government in Stormont, with scrutiny being applied by locally elected politicians, we should endeavour to try to find that route.

[Several hon. Members rose—]

[Dr Andrew Murrison (South West Wiltshire) (Con)]

Nevertheless, Mr Speaker, I hope that you will allow me to add my best wishes to the Secretary of State on her birthday. I welcome the statement, particularly the bit in which she invites comments about how we might close the democratic deficit in Northern Ireland. The Northern Ireland Affairs Committee has many helpful suggestions, and we will certainly be sending them to her.

I draw my right hon. Friend’s attention to the written ministerial statement made on Thursday and the bit in which she says:

“Permanent Secretaries cannot… take the full range of decisions that would be available to Ministers”—[Official Report, 8 March 2018; Vol. 637, c. 20WS.],

which is, of course, perfectly correct. She goes on to say that Ministers will be helpful in offering guidance. May I press her on exactly what form that guidance will take? She has set out departmental expenditure limits, but there is little granularity—certainly in the public domain—about what actually constitutes those DELs.

[Karen Bradley]

I thank my hon. Friend, the Chair of the Northern Ireland Affairs Committee, for his good wishes, for his question and for the Committee’s work in looking at devolution in Northern Ireland. I was pleased to give evidence to the inquiry, and I know that the Committee has visited several institutions and other places in Northern Ireland to consider what might be done. I look forward to the Committee’s recommendations.

In the absence of ministerial direction from Stormont, my hon. Friend is right that there is concern about the work that civil servants can do. We have worked closely with them, ensuring that legal advice is received at all points, so that they have the support they need to take decisions based on those that were previously taken by the Executive or that the Executive had indicated would have been taken. I have written to the permanent secretaries to set out my view and to provide guidance on how any money, such as the health transformation money, should be spent in line with the Bengoa recommendations.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

I thank the Secretary of State for early sight of her statement, and I join the House in wishing her a very happy birthday. I will begin by making absolutely clear my view that while money needs to be allocated for the continued funding of public services in Northern Ireland, those matters should more properly be addressed by locally elected representatives. The decision to increase rates, for example, is a policy decision that reverses a key Stormont policy.

I am sure that none of us wants to be here again, but here we are, in order that the behind-the-scenes machinery of government that keeps the lights on and keeps people’s wages being paid can continue. We must at all times, however, keep in mind the fact that the restoration of devolved government in Northern Ireland is the principal aim. I was pleased that the Secretary of State continued to welcome the views and proposals of the Northern Irish parties and others on how local decision making and scrutiny on a cross-community basis might be achieved. Would she tell us a little bit more about how those views and proposals might be canvassed more transparently and shared with Northern Irish citizens?

With regard to confidence and supply agreement moneys, while of course no one ever begrudges extra money spent on health or education, the sum of more than £400 million is part of the £1 billion that the Democratic Unionist party extracted from the Conservatives to prop up the Government. In view of the considerable concerns about the deal and, indeed, recent concerns about the transparency of the political donations process in Northern Ireland, when can we expect further details about what the extra money will be spent on? Will the Secretary of State explain the destination of the money before the House separately from the allocation of funds required to continue funding public services? It is worrying that we appear to be stepping into a zone where money is allocated without close ministerial direction, and we have not yet seen any criteria for how that money will be spent. Will the Secretary of State commit to providing much greater transparency on the spending of the DUP deal money and lay the full details before the House?

[Karen Bradley]

Again, I thank the hon. Lady—I feel that I may be thanking everyone for their good wishes—for her kindness. She asked about alternative approaches. I invite any parties with suggestions about how this could function and how we might have some form of Assembly functioning with scrutiny in Stormont, but I will have to take legal advice on everything that is proposed. If a suggestion gathers cross-party support, we would want to talk about that with others so we ensured that we could deliver something that everyone was confident would put us back on the route to devolution, not away from it. That is my key priority.

The hon. Lady also asked about the money for the confidence and supply arrangement. She will know that the agreement is on the internet, and is available for everyone to see and download. She should also recognise that these are important changes, particularly to infrastructure. The York Street interchange, for example, is something that anyone in Belfast will know is crying out for investment and change. That is why the Government want to make sure that money is spent on the things on which it needs to be spent, including health transformation, in line with the Bengoa recommendations.

[Bob Stewart (Beckenham) (Con)]

Does my right hon. Friend think that the allocations in the budget largely suggested by the Northern Irish civil service, which is pretty canny, would be very different if the same civil service was advising a Northern Irish Executive, which is obviously not working at the moment?

[Karen Bradley]

Clearly, my hon. and gallant Friend is right that those are conversations that the Northern Ireland civil service has had with the parties as well as with the UK Government. It has been incredibly professional in ensuring that it looks at both the decisions made by the Executive before they collapsed and their programme for government. It reflects the priorities of the UK Government in ensuring that health, education and policing are protected.

[Nigel Dodds (Belfast North) (DUP)]

May I join hon. Members in wishing the Secretary of State every best wish on this momentous occasion? May I thank her for early sight of the statement and for the Government’s clear support in that statement once again for Northern Ireland’s place within the United Kingdom? That is very welcome.

I welcome the budget statement and the £410 million extra for Northern Ireland as a result of the confidence and supply agreement. It will be spent on infrastructure, health and education, and will go to deprived communities, to mental health, to east and west, urban and rural, nationalist and Unionist—everyone benefits. That is a good news story for Northern Ireland, and it has been welcomed across Northern Ireland.

May I also welcome the fact that the Secretary of State said in the statement that she would take a series of decisions—the Government were beginning to take those decisions—for the good government of Northern Ireland? That is long overdue, and I welcome the series of measures that she has announced. I warmly welcome her willingness to look at arrangements that provide for local decision making and scrutiny on a cross-community basis in the meantime. She can be assured of our full support and engagement in that process. We want devolution up and running—she knows that we would form the Executive tomorrow on the basis of the agreed programme for government with Sinn Féin, and we welcome all efforts to return proper decision making to Northern Ireland.

[Karen Bradley]

I thank the right hon. Gentleman for his good wishes and for his comments. I thank the DUP for the role that it played, along with all the other parties, in working with the Government to deliver the budget and ensure that we were able to reflect the priorities of the parties of Northern Ireland.

The right hon. Gentleman is right that the confidence and supply arrangement money that we have released will absolutely be spent on a cross-community basis, for all communities, and for all parts of Northern Ireland, dealing with issues that have perhaps been underfunded in the past or, particularly in the case of infrastructure arrangements, very much need funding today. I thank him for his kind words.

[Maria Caulfield (Lewes) (Con)]

I welcome the review by the Secretary of State of pay for Members of the Legislative Assembly. On a separate matter, does she think it is unsustainable for hon. Members who do not take their seats in Parliament to continue to receive representative money for political campaigning?

[Karen Bradley]

Clearly, the matter to which my hon. Friend refers is a matter for the House, and I know that there are hon. Members who are well versed in the procedures needed for such matters. The issue of MLA pay is something I need to look at as a result of the review by Trevor Reaney, and I would welcome representations from all about that matter.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

May I, too, thank the Secretary of State for advance sight of the statement? The measures that she has brought to the House are to be supported. It is sad but inevitable that it should have to happen this way, but all that we are doing is treating the symptoms, not the underlying disease.

The Secretary of State will have seen the recent comments of the chairperson of the Policing Board about the need for proper accountability of policing in Northern Ireland. The fact that the Police Service of Northern Ireland spends £125,000 a day on overtime demonstrates that the chairperson of the Policing Board is right, and is that not something else that needs to be tackled?

[Karen Bradley]

The right hon. Gentleman makes a point that demonstrates once again why we need devolved government in Stormont. I have met the chair of the Policing Board, and I have also spoken to the Chief Constable about this matter. They are both keen that political representation on the Policing Board should be restored as soon as possible so that there is proper governance. I will be in Washington at the end of the week for the St Patrick’s day events there, and I believe that the chair of the Policing Board will be there too, and I hope to catch up with her and discuss how we might make that a reality.

[Mr Philip Hollobone (Kettering) (Con)]

My constituents in Kettering were under the clear impression that the main purpose in life of Sinn Féin was to avoid at all costs direct rule from Westminster. Is it not clear but ironic that by refusing to reach an agreement with the DUP Sinn Féin has brought about exactly the thing that it has always campaigned to avoid?

[Karen Bradley]

I do not want to get into the whys and wherefores of what happened in the talks process. All I know is that all parties have given me a very strong commitment that they want to go back into devolved government, and I am seeking to find ways to make that a reality.

[Lady Hermon (North Down) (Ind)]

I listened carefully to the Secretary of State’s statement and noted that she was decisive in announcing an increase in rates in Northern Ireland. I was extremely disappointed, to put it mildly, that she continues to dither about cutting the salaries of MLAs. Does she not recognise and accept that it is morally indefensible that MLAs should continue to receive their full salary in the absence of a functioning Assembly for 14 months?

[Karen Bradley]

The hon. Lady sums up the comments that have been made to me by members of the public across Northern Ireland, but I do want to make sure that everybody has the chance to make representations on this matter, so that the power we can legislate for in Westminster is used appropriately. I also want to say, as I have said to her at the Select Committee, that, although there are good grounds to look at the pay of MLAs, I do not think the pay for staff should be affected. I think we would all agree that our staff do fantastic work and they need to be properly remunerated for the great work they do for the constituents of the MLAs.

[Nigel Mills (Amber Valley) (Con)]

I welcome the statement, but does my right hon. Friend agree that the fact that this year, unlike with the previous budget, she has had to take some decisions that could not have been thought through by the Executive before they fell means that today we are several steps further towards direct rule than we were a couple of weeks ago?

[Karen Bradley]

I do not agree with my hon. Friend. A budget needed to be balanced. These steps were taken to balance it. I have done so while being consistently mindful of the need to make sure we maintain the position of restoring devolved government wherever possible.

[Mr Gregory Campbell (East Londonderry) (DUP)]

In welcoming the statement, I concur with others in wishing the Secretary of State a happy birthday. Going out to consultation on the MLA salary issue and the office costs allowances is a good move. Does she agree that it would be intolerable to move on that if the House were not also to move on the issue of MPs from Sinn Féin? They deliberately boycott this House, whereas MLAs are prevented from doing their full job.

--- Later in debate ---

[Karen Bradley]

I thank the hon. Gentleman for his kind words. He will know that the matter he raises is one for the House, but the House will have heard the strong words from both sides on the matter.

[Edward Argar (Charnwood) (Con)]

May I start by paying tribute to my right hon. Friend and her predecessor for their tireless work to try to restore devolved government to Northern Ireland? Will she reaffirm that her clear commitment to working for that restoration of devolved government goes hand in hand with her clear commitment to ensuring that, while that work goes on, through this budget the people of Northern Ireland continue to receive the services and investment they need?

[Karen Bradley]

I thank my hon. Friend for his question. He seems to have a frog in his throat and he did well to deliver his question without starting to cough too much. I agree that it would just not be tolerable for the UK Government to not do what was necessary to enable public services to continue to be delivered. The people I have met in Northern Ireland have been very dedicated public servants and they do deserve that, so that they can continue to deliver the schools, hospitals and policing, and all other manner of public services, that the people of Northern Ireland need.

[Kate Hoey (Vauxhall) (Lab)]

The Secretary of State has said that some fundamental decisions cannot be taken in Northern Ireland at the moment. How long will she go on accepting that before she decides that we have to go further and appoint Ministers? Will she make a decision in the next month, please, on the Commonwealth youth games, which are to be held in Northern Ireland in 2021? If a decision is not taken by the end of this month, we will lose those games.

[Karen Bradley]

The hon. Lady, who was a great sports Minister, knows exactly what the problem is, and I remember it from my previous brief. Belfast has been awarded the 2021 Commonwealth games but the absence of an Executive and Ministers to sign the appropriate documentation and contractual information means that there is great difficulty. I am looking at how we can resolve many of these issues, and that one is certainly on my table at the moment.

[Paul Masterton (East Renfrewshire) (Con)]

I welcome the Secretary of State’s statement, particularly the long overdue announcement that some action will be taken on MLAs’ pay. She said in her statement that she is looking for full and final representations from the Northern Irish parties. Will she also be seeking further representations from voluntary sector, third sector and community groups, many of which have had to fill the gap left by MLAs? Not only are they not carrying out parliamentary duties, but many of them have been completely absent in their constituencies.

[Karen Bradley]

I would welcome representations from all. Trevor Reaney’s work and recommendations, for which I thank him, are very valuable and helpful, but it would also be helpful to hear the views of all parties and all sides on this matter.

[Sammy Wilson (East Antrim) (DUP)]

We welcome the fact that the Government have now announced a budget for Northern Ireland. Does the Secretary of State recognise that hundreds of decisions about how that money is spent require some input from a Minister? Will she give a commitment that those issues will be addressed by the promises she has made to the House today to look at further measures?

[Karen Bradley]

On the budget I have spoken about today, I am confident that the direction is there for civil servants to deliver as required and as wanted by all parties. The right hon. Gentleman is right that many decisions are awaited. It is frustrating for all of us, as it is for him, that in the absence of devolved administration in Northern Ireland some of those decisions have not yet been taken.

[Michelle Donelan (Chippenham) (Con)]

I agree with my right hon. Friend that it is deeply regrettable that she has had to take the actions set out today in regard to a budget for Northern Ireland, which are no substitute for local Ministers on the ground making decisions. Will she assure the House that she will do everything to prevent any return to direct rule?

[Karen Bradley]

My priority is to restore devolved government in Northern Ireland. For the good of the Union and for the good of the people of Northern Ireland, that is the right thing to do. It is also worth putting on the record that that is the primary aim of the Irish Government as well. I want to put on the record my thanks for their support in the talks process, and I know that they are committed to restoring devolved government, as we are.

[David Hanson (Delyn) (Lab)]

Could the Minister set a timetable for her consideration of a halfway house on some of the scrutiny issues that have been mentioned by Members across the House? She would have support on allowing MLAs to table questions, to meet as committees and to scrutinise decisions. As a direct rule Minister, I know there were hundreds and hundreds of decisions taken every day by Ministers that are now not being taken. There needs to be scrutiny of those taking those decisions.

[Karen Bradley]

I know the right hon. Gentleman served as a direct rule Minister, in 2004-05 or around then. He was distinguished in doing so—

[Owen Smith]

It was 2005-06.

[Karen Bradley]

I am being corrected by the Opposition Front Bencher.

[Stephen Pound (Ealing North) (Lab)]

It doesn’t happen very often.

[Karen Bradley]

It always happens.

The right hon. Gentleman is right to say that these decisions do need to be taken. We do want to see devolved government. We want decisions and scrutiny to be undertaken in Stormont. That is the right place for those things to happen. I am not going to put a timeframe on it because we need to find something that has consent. As he will know, under the Belfast agreement, for constitutional changes in Northern Ireland, we would need the consent of all communities. Therefore, I do need to work through all the suggestions that have been put to me, but I would welcome suggestions from him, given his extensive experience of doing the job.

[Kevin Foster (Torbay) (Con)]

I would not really welcome this statement, but it is the right thing to do and it is the right approach, given the pressures to deliver public services. We would much rather these decisions were being taken back in Stormont, where they should be taken. Does my right hon. Friend agree that this is not just about financial management and about getting the Assembly going again? It is also about the range of decisions that need to be delivered, based on an agreed programme of government—not just relying on the UK Government to step in when they absolutely have to.

[Karen Bradley]

I agree. My hon. Friend sums the situation up very well.

[David Simpson (Upper Bann) (DUP)]

I welcome the Secretary of State’s statement. Will she outline for the House what actions she intends to take on efficiencies within the different Departments, which she mentioned in her statement?

[Karen Bradley]

The hon. Gentleman will know that the Northern Ireland civil service had started work on efficiencies before the Executive collapsed. Those things had been talked about within ministries while there were Ministers in place at Stormont, so this is about working forward from the programme of government to deliver those efficiencies, which Ministers had previously been looking at. I recognise that this is all terribly difficult to explain, but we are working within the boundaries of what we can.

[Karin Smyth (Bristol South) (Lab)]

I very much welcome the strong commitment in the statement to the Belfast Good Friday agreement. There is no doubt that Northern Ireland needs the funding—indeed, an end to austerity would be welcome in Bristol South and the rest of the United Kingdom—but in tying up the money for confidence and supply, the strength of that case is undermined. What impact assessment has the Secretary of State done on the confidence and supply money?

[Karen Bradley]

As I have said, the agreement on the confidence and supply money is publicly available on the internet. It recognised the priorities and the issues that needed support and additional funding. This process has not been easy—balancing a budget is never easy—but we have done it while mindful of the commitments made in the confidence and supply arrangements and the previous work that had been done.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Will the Secretary of State confirm that not all political parties—for instance, the Social Democratic and Labour party—were consulted on the actual content of the budget? Will she outline who made the political decisions in relation to the budget?

[Karen Bradley]

As the UK Government, we have had to take those decisions. I ensured that all parties saw the statement and the allocations and were allowed input into them, not only before last Thursday, when I got the final figures, but during that period, to ensure that they were all able to contribute to the work that we were doing.

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

I thank the Secretary of State for her statement and welcome the budget, but key decisions are urgently required, such as on the support for the victims of historical institutional abuse and on legacy. Will the Secretary of State confirm that she has been informed by Departments that, unless key decisions are made, and made urgently, they will not be able to balance the budgets in those Departments for the next year?

[Karen Bradley]

That is not the advice that I have had from permanent secretaries. The hon. Lady is right to refer to two additional issues: the concerns about legacy and about the victims of institutional abuse. On legacy, the UK Government are committed to consulting on the Stormont House agreement and to setting up the relevant bodies. On historical abuse, the Hart inquiry was set up by the Executive before it collapsed, so it is constitutionally very difficult for any other party or Government to consider its recommendations; it was not a review instigated by the UK Parliament or UK Government. The hon. Lady absolutely describes the tension of the situation we are operating within.

[Paul Girvan (South Antrim) (DUP)]

I thank the Secretary of State for the statement and wish her many happy returns. It is interesting to note that the message that we are receiving from civil servants and permanent secretaries is that they cannot move on and make decisions as to where money should be spent. In the absence of an Assembly, and given that there is unlikely to be one for the foreseeable future, it is vital that we have Ministers making decisions—if not the Secretary of State, it should be other Ministers. When is that going to happen?

[Karen Bradley]

I have attempted to deliver in the budget the financial certainty that is needed to enable the public services to continue. If devolved government were up and running in Stormont, Ministers in Stormont would be able to amend the way in which the budget operates, but I have done what I had to do to enable public services to continue and for public servants to have some certainty, within the restrictions of what is possible for me as Secretary of State for Northern Ireland.

[Gavin Robinson (Belfast East) (DUP)]

I wish the Secretary of State many happy returns; she has had cross-party agreement on that. I understand her caution, concern and reluctance to advance issues of direct rule but, on the statement and on providing a soft landing for that perpetual glide path that we have had for the past 14 months, may I encourage her to be bold and to provide the political opportunities for decision making for the benefits and interests of all the people in Northern Ireland, and to do so with confidence?

[Karen Bradley]

I thank the hon. Gentleman for his good wishes. I am committed to the Belfast agreement and the institutions that were set up under it. I want things to be in such a position that those institutions can be up and running and delivering for the people of Northern Ireland, with the politicians they elected delivering for them. That is what I am determined to do and I do not want to undermine that in any way. That is the very difficult balancing act that I have been operating under. I wanted to make sure that civil servants have the certainty and money that they need, but without undermining anything. I would welcome any suggestions from the hon. Gentleman and others about the sort of constitutional arrangements that could be put in place to get us back to devolved government.

Finances

Karen Bradley Excerpts

Thursday 8th March 2018 Written Statements

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

During the course of the past 13 months, in the absence of an Executive and Assembly in Northern Ireland, the UK Government have worked tirelessly to facilitate the restoration of devolved Government. It had been my firm hope that a new Executive would be in place to set a budget. That will now not be possible in time for plans to be put in place for the forthcoming financial year.

Yet there are acute pressures across public services to be addressed in 2018-19, and clarity is required now to enable planning to proceed for the year ahead. It is now imperative, therefore, that the UK Government provide clarity and certainty around Northern Ireland finances for 2018-19.

2018-19 Budget allocations

I set out below the resource and capital allocations which I consider to be the most balanced and appropriate settlement for Northern Ireland Departments. It would be open to a restored Executive, of course, to consider and revise the position I have set out.

In deciding on these allocations I have engaged intensively with the Northern Ireland Civil Service (NICS) to understand the needs of Departments as they continue to work to deliver the draft programme for Government. I have reflected too on the response to the budget briefing published by the NICS before Christmas, and discussed the budget situation with the main parties in Northern Ireland.

In the absence of local Ministers, and given the proximity of the next financial year, it would not be appropriate for the UK Government to seek to take fundamental decisions about service delivery and transformation at this time. Yet we must act to secure public services and enable NI departments to meet urgent pressures in health and education. That is what this budget settlement will do, by protecting and preserving public services within challenging fiscal constraints.

On the resource side, it delivers real-terms increases for health and education from their 2017-18 opening baseline. It also delivers cash terms increases for the Departments of Justice; Infrastructure; and Agriculture, Environment and Rural Affairs. Elsewhere, Departments would either be cash-flat or see small decreases, with notable reductions only for the two central Departments (Finance and the Executive Office). For capital, it provides a strong basis for investment and enables key flagship projects to progress.

Confidence and Supply funding

This settlement also delivers £410 million in financial support arising from the financial annex to the confidence and supply agreement between the Conservative Party and the Democratic Unionist Party.

This includes £80 million in support for immediate health and education pressures; £30 million to support programmes to address issues of mental health and severe deprivation; £100 million for ongoing work to transform the health service in line with the broad-based consensus fostered by the Bengoa report; and a £200 million boost in capital spending for key infrastructure projects. Furthermore, in recognition of the lack of opportunity for more fundamental service reconfiguration over the last 12 months, this Budget position allows for £100 million in flexibility to enable existing capital funding to be used to address public services resource pressures in 2018-19. This additional funding will be transferred in due course only with Parliament’s full authorisation, in line with the long-established estimates process.

Transformation

But, as the NICS budget briefing made clear, transformation is needed in a number of areas to make services sustainable in the long term. The urgent work to prepare for this must proceed. To that end, the budget includes a £4 million fund to prepare the ground for transformation, alongside the £100 million set out for health transformation above. I also recognise that this budget only allocates resources for 2018-19 and the NI Departments will need urgently to plan for future years. In that context, it is right that the NICS should continue to take forward preparatory work which could assist with balancing the budget in 2019-20. This will ensure that options are kept open for a restored Executive to consider as part of future budget processes.

Regional rate

As part of setting a budget, it is essential that the UK Government provide clarity on the regional rate. This budget position has been constructed on the basis of an increase in the domestic regional rate of 4.5%. I consider that this is a necessary and important step to continue to support public services, particularly in health and education. The non-domestic rates would rise only at 1.5%, in line with inflation. Conscious of the interest of many stakeholders in the scheme, I can also confirm that this budget settlement would provide the basis for the small business rate relief to continue.

Implementing decisions within the overall allocations

This statement outlines overall allocations, based on my assessment of the options currently available to the NI Departments. To the extent possible, the consequent prioritisation of resources within NI Departments will need to be undertaken by permanent secretaries, as has been the case during the past year. The position will be monitored throughout the year and, where possible, resources reallocated to the highest priority areas in the normal way.

Permanent secretaries cannot, of course, take the full range of decisions that would be available to Ministers. In that context, the UK Government shall continue to support the Northern Ireland Administration, and to do whatever is necessary to meet our responsibilities to the people of Northern Ireland.



Annex of tables can be viewed online at:

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2018-03-08/HCWS527/.

[HCWS527]

Northern Ireland

Karen Bradley Excerpts

Tuesday 20th February 2018 Commons Chamber

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

With permission, Mr Speaker, I should like to make a statement on the current political situation in Northern Ireland.

Over recent weeks there have been talks involving the main political parties in Northern Ireland, particularly the two largest parties, the Democratic Unionist party and Sinn Féin, to see whether there is a basis for re-establishing the Executive. The UK Government have facilitated and supported those intensive negotiations. We have been in close touch with all the parties and have responded to requests for advice and support.

The Irish Government have also been involved, in accordance with the well established three-strand approach. I would like to place on the record my appreciation of the contribution made by the Irish Foreign Minister, Simon Coveney, and his team. In addition, my right hon. Friend the Prime Minister has been consistently and closely involved, speaking to party leaders and visiting Belfast last Monday. I have continued to give her up-to-date reports as the talks have progressed.

The aim of the talks has been very clear: to bring about the re-establishment of inclusive devolved government at Stormont, which Northern Ireland has effectively been without for over 13 months. In so doing, we have been able to build on the progress made by my predecessor, my right hon. Friend the Member for Old Bexley and Sidcup (James Brokenshire), whom I warmly welcome back to the House today.

In the Government’s view, all parties, including the DUP and Sinn Féin, participated in discussions seriously and in good faith, and we believe that progress towards reaching agreement on all the key substantive issues has been made. It became possible, in the light of this progress, to identify a basis for a possible agreement to allow an Executive to be formed, embracing how the parties ensured that the Executive was sustainable, how they reached a balanced and fair accommodation on the difficult issues of language and culture, and how this was reflected in a package of legislation. Many other issues were also addressed, if not always resolved.

Unfortunately, however, by last Wednesday it had become clear that the current phase of talks had reached a conclusion without such an agreement being finalised and endorsed by both parties. As I said then, it is important for everyone to reflect on the circumstances that have led to this, and on their positions both now and in the future. What is important today is for me to give some directions on the next steps.

First, as our manifesto set out at the last election, the Government believe in devolution under the terms of the 1998 Belfast agreement. We want local politicians making decisions on local matters to be accountable to a local Assembly. We need devolved government to help deliver a stronger economy, to build a stronger society, and to ensure that Northern Ireland’s voice is properly heard as we leave the European Union. In addition, we want to see all the other institutions of the agreement operating in the way that was intended.

I cannot reiterate too strongly that devolved government is in the best interests of all the people of Northern Ireland, because it ensures that their interests and concerns are fairly and equitably represented. It is also in the best interests of maintaining and strengthening the Union, to which the Government remain fully committed, consistent with the principle of consent. We will therefore continue to explore with the parties whether the basis for a political agreement still exists. As my right hon. Friend the Prime Minister has reaffirmed, we stand ready to introduce the legislation that would enable an Executive to be formed at the earliest opportunity. That is the Government’s clear hope and desire, and I believe that our view is shared widely on both sides of the House.

Secondly, however, matters in Northern Ireland cannot simply remain in a state of limbo. A number of challenging decisions will have to be made. Ultimately, the Government have a responsibility to ensure good governance and the continued delivery of public services. In particular, as the head of the Northern Ireland civil service has made clear, there needs to be certainty and clarity on a budget for Northern Ireland for next year as soon as possible. I intend to take steps to provide that clarity, and I will update the House as soon as I am in a position to do so. This is clearly not where I want to be, but in the absence of an Executive in Northern Ireland I have no other choice.

In the longer term, the Government will not shirk their responsibility to take whatever steps are necessary to provide certainty and stability for the people of Northern Ireland, while maintaining our commitment to govern with rigorous impartiality in the interests of all of them. However, we will do that only once we are sure that all other viable options designed to restore devolved government have been properly considered, including my current statutory obligation to call an Assembly election.

In the absence of devolution, it is also right for us to consider the issue of salaries for Assembly Members. At the end of last year, my right hon. Friend the Member for Old Bexley and Sidcup received recommendations on that from Mr Trevor Reaney, a former Clerk of the Assembly. The Government will need to decide shortly on the next steps. I acknowledge the public concern about the fact that while a number of Assembly Members continue to carry out constituency and representative functions, current salaries are maintained while the Assembly is not meeting.

As for the issue of addressing the legacy of Northern Ireland’s past, the Government have manifesto commitments to consult on the implementation of the bodies set out in the 2014 Stormont House agreement, and to support the reform of inquests. I would much prefer to do that in the context of an agreement that would lead to the restoration of a devolved Executive, but I am conscious of the Government’s responsibility to make progress in this respect to provide better outcomes for victims and survivors—the people who suffered most during the troubles. We will therefore continue to proceed towards a full consultation as soon as possible, so that everyone can have their say.

As the House will know, April marks the 20th anniversary of the historic Belfast agreement. That agreement, along with its successors, has been fundamental in helping Northern Ireland to move forward from its violent past to a brighter, more secure future. The Government’s support for those agreements remains steadfast, as does our commitment to govern for everyone in Northern Ireland.

There is no doubt that Northern Ireland has taken huge strides forward in the past 20 years. In my short time as Northern Ireland Secretary, I have seen a place full of wonderful talent and huge potential, but any commemorations this year will look decidedly hollow if Northern Ireland still has no functioning Government of its own. Everyone must continue to strive to see devolved government restored and to build a Northern Ireland fit for the future, and that remains the clear focus and determination of this Government.

[Owen Smith (Pontypridd) (Lab)]

May I thank the Secretary of State for advance sight of her statement? I also thank her and her predecessor, the right hon. Member for Old Bexley and Sidcup (James Brokenshire)—whom I am delighted to see back in his place in this House today—for all the efforts they have both made, alongside the Irish Government, to facilitate agreement between the parties.

All of us in this place know that these are very difficult issues, and I commend all the parties in the talks, especially the DUP and Sinn Féin, on the total engagement they have shown on behalf of their communities. I have to say that I must also commend the Secretary of State on the Herculean optimism she continues to hold to in still hoping for a deal to be done and on the clear statement that she is rejecting the calls to accede to direct rule with immediate effect. Optimism is a vital ingredient in Northern Ireland, even when it is at its most difficult to summon, so I will not criticise the Government for remaining hopeful.

But clarity and contingency planning have also been important features of the process, so people know where they are in that process and what will follow if there is no progress. On those questions, I fear that many in Northern Ireland will be little the wiser after the Secretary of State’s statement this afternoon, because she told us, in a crucial passage, that “it became possible” in the recent talks “to identify a basis for a possible agreement” to form an Executive, including “on the difficult issues of language and culture”. That is a very optimistic statement, and it is a view that has been echoed by the Irish Government and Sinn Féin, but it is hotly disputed by the DUP, whose leader told us that there was no prospect of these discussions leading to a deal.

Ambiguity has also played a very important part on occasion in the Northern Ireland process, but both accounts cannot be accurate, and I hope the Secretary of State will accept that she has a duty to provide clarity to the people of Northern Ireland, not just because they deserve to know what is going on in their peace process, but because some, including some in this House, are using this period of confusion to advance their own agendas: to undermine the Good Friday agreement, which some see as an obstacle to Brexit, or to damage the concept of power sharing, which some have never supported. That is a reckless and dangerous game to play, because we in this place must never forget that the Belfast agreement ended a conflict that led to 3,500 lives being lost. Nor should we forget—especially those who are so quick to assert that the Brexit referendum is to be respected—that the Belfast agreement itself was copper-fastened with its own referendums, north and south, and they too must be respected and protected.

So I welcome the Secretary of State’s confirmation that the Government’s support for the agreement remains steadfast, and I ask her to confirm that she sees the Good Friday agreement as the only viable long-term option for the peaceful governance of Northern Ireland, and that the Government believe that its unique form of power sharing is indispensable to the agreement.

Coming back to last week and the events in Belfast, a simple way for the Government to clear up this confusion is to publish precisely where there was agreement and where the gaps remain—not in order to apportion blame, but to provide greater reassurance that progress has been made over the 13 months. So will the Secretary of State commit to providing further detail and to publishing some of those details?

One area where the Secretary of State has offered some further clarity today is on the possibility of a fresh election in Northern Ireland, and she should know that that would be met with glacial enthusiasm. Why does the Secretary of State think there is potentially an advantage in another election, the fifth in three years, in Northern Ireland? What would it achieve? Although she does have a statutory duty to call one at some point, that has been true since 27 March last year, and she and her predecessor have resisted the temptation to date.

The Secretary of State has also said that she is considering how best to give some certainty about the budget in Northern Ireland. We understand and accept that, and urge only that she consults properly with the parties, so that we can ensure maximum acceptance of, and agreements on, those budget allocations as part of the contingency planning. I hope she can commit to that too today.

Finally, may I ask the Secretary of State to consider what she will do to take forward some of the pressing issues facing Northern Ireland if her optimism is misplaced and a deal cannot be struck? It is not just on the issue of MLAs’ pay that people in Northern Ireland want to see action. Vital questions on the treatment of victims, both of the troubles and of historical institutional abuse, need to be resolved not just with consultation, but with legislation. These people have been waiting for far too long, so will she commit to looking at that in the absence of a deal?

Will the Secretary of State also commit to taking forward issues of human rights and social justice that are enjoyed naturally in other parts of the UK but denied to our citizens in Northern Ireland? In particular, can she confirm that one area of discussion between the parties was on the issue of equal marriage, and that agreement was reached to take matters forward through a private Member’s Bill in Stormont? In the absence of a Stormont Bill, would she consider legislating similarly to extend equal marriage rights to Northern Ireland? We believe that she should, and we will support her if she does so. To be clear, a Labour Government would legislate on that if Stormont could not do so.

Political problems are nothing new in Northern Ireland, but the current impasse has left the Northern Irish people without an accountable Government for almost 400 days. This is a profound crisis, and the Government have a profound duty to try to resolve it, and to preserve the Good Friday agreement and the principle of power sharing. We will continue to support the Government in trying to resolve the crisis, and we will support them on legislation wherever it is necessary, but we will hold them to account to preserve the Good Friday agreement in its spirit and its letter.

[Karen Bradley]

I thank the hon. Gentleman for his comments, and for the tone of them. It is important that we in this House show unity and a unified front when it comes to resolving these issues and re-establishing devolved government in Northern Ireland. If both sides of the House work together with that purpose in mind, we will have all the more reason to hope that that can be achieved. He asked about a number of matters, and I will try to address as many of them as I can.

On the topic of legacy, to which I made reference in my statement, we have been working with the parties and the Victims’ Commissioner on a consultation programme. As I have said, I would very much prefer to do that in the context of devolved government in Stormont, but we clearly have a responsibility to the victims of the troubles, and it is absolutely right that we should deal with that. We will take whatever steps are necessary to ensure that the matter of legacy is dealt with, but as I say, we would much rather that it was done in the context of having devolved government in Stormont. We are committed to the institutions as set out in the Stormont House agreement, and we will be consulting on that.

We are also committed to the Belfast agreement, as I said in my statement, and to all successor agreements. The position in the Conservative party manifesto at the last election, and the position of this Government, is that the Belfast agreement is the right approach. It has led to great success for Northern Ireland, and more success can come. The hon. Gentleman mentioned Brexit. The joint report that was signed before Christmas makes specific reference to a commitment to the Belfast agreement and to respecting the institutions in the agreement.

The hon. Gentleman asked about the talks, and about what the British Government would publish. I want to make it clear that the talks that we have facilitated—we did not impose them—have been between the parties, particularly the two main parties. Therefore, any documentation or anything that has been written down is a matter for the parties; it is not a matter for the British Government. He also asked about an election. I have a statutory duty as Secretary of State to call an election, but I want to ensure that we have exhausted every avenue and every viable option to re-establish devolved government at Stormont. That is what the Government want to see, and that is what we are working towards. We will do all we can to achieve that, and I thank him for his support in that regard.

[James Brokenshire (Old Bexley and Sidcup) (Con)]

It is good to be back, and I thank colleagues on both sides of the House for their kind, generous and supportive comments over the past few weeks. What is not so welcome, however, is the continuing lack of devolved government in Northern Ireland, which it desperately needs. I commend the Secretary of State for all her work and for her efforts in seeking to bring the parties together. I also commend the Irish Government for their work.

I commend what the Secretary of State said about the Government’s commitment the Belfast agreement. That is our cornerstone; it is the bedrock of what we do. I also commend what she said about the troubles and the legacy of the past, and about making progress on the consultation. I hope that she will agree, however, that we need to remain firmly focused on restoring devolved government. Rather than talking up direct rule, we should continue to focus on talking out the remaining issues that lie between the two parties, and I hope that she will agree that we need to retain that focus in all we do if we are to restore devolved government and give Northern Ireland the bright, positive future that I know its people want to see.

[Karen Bradley]

I thank my right hon. Friend for his comments and questions, and for his approach. He was an outstanding Secretary of State for Northern Ireland, and he is very much missed in Northern Ireland. I do not think I have been to a single event since being appointed Secretary of State where he has not been mentioned in the warmest and most generous terms. I am fully aware that his are big shoes for me to fill.

I agree with all that my right hon. Friend says about the importance of restoring devolved government for the people of Northern Ireland. The people of Northern Ireland elected the Members of the Legislative Assembly, and those MLAs need to be in Stormont. That fabulous, wonderful Parliament building is empty and bereft, and it needs to be filled with the people who were elected to fill it, taking decisions on behalf of their constituents for all the people in Northern Ireland.

[Patrick Grady (Glasgow North) (SNP)]

I join others in welcoming the former Secretary of State, the right hon. Member for Old Bexley and Sidcup (James Brokenshire), on his return to the Chamber.

I also thank the Secretary of State for advance sight of her statement, but we share the disappointment we are hearing that, although there has been some progress to report, there has not been enough. We welcome the continued public commitment of the UK and Irish Governments to the Good Friday agreement, noting, as she does, that we are approaching its 20th anniversary.

The Good Friday agreement and the institutions it established were endorsed by the people of Northern Ireland, and the preservation and restoration of those institutions should be the focus of all the parties and interlocutors involved in these vital talks. We also note the Irish Government’s firm position that the agreement, and its subsequent agreements, must be implemented in full, and in that context the Irish Government have reiterated that they do not want to see the introduction of direct rule in Northern Ireland.

I ask the Secretary of State to clarify her timetable for the next steps she has outlined. In particular, given the absence of talks, under what circumstances would she consider calling fresh elections to the Assembly? What consideration has she given to convening the British-Irish Intergovernmental Conference, which was established under strand 3 of the Good Friday agreement?

[Karen Bradley]

I thank the hon. Gentleman for his comments and for his statement of commitment to the Belfast agreement. On my priorities now, in the past few weeks I have focused on the talks process. I still continue to work and communicate with all parties to see what we can do to re-establish discussion and to help the parties get to an accommodation that will enable a devolved Executive to be established. My priority in the immediate term is clearly the budget, as we need to make sure that the dedicated civil servants and public servants in Northern Ireland have the certainty they need to continue delivering public services.

[Several hon. Members rose—]

[Theresa Villiers (Chipping Barnet) (Con)]

None of us should underestimate the difficulty of reaching accommodation on issues of culture and identity that have divided people for centuries. Will the Secretary of State urge the parties to come together to try to find a balanced package that reflects the cultural sensitivities of all sides of the community in modern Northern Ireland?

[Karen Bradley]

I thank my right hon. Friend for her question and hers are another pair of shoes that I endeavour to fill. She was an excellent Secretary of State for Northern Ireland. She went through a number of these processes, so she knows only too well how these things operate. I agree wholeheartedly with what she says.

[Nigel Dodds (Belfast North) (DUP)]

I join others in warmly welcoming the right hon. Member for Old Bexley and Sidcup (James Brokenshire) back to the Chamber. I wish him well.

As the Secretary of State knows, we of course stand ready to form an Executive tomorrow, on the basis of no preconditions and on the basis of the programme for Government that was agreed with Sinn Féin back in December, before Sinn Féin walked out and set preconditions—political demands—that they want to see implemented before they get back into the Executive.

The fact that there is no Executive is not the fault of the Democratic Unionist party. Indeed, it is not the fault of the smaller parties, either—I make that very clear. But in the absence of devolved government, now is the time for the Secretary of State to do right by all the people of Northern Ireland.

I have just come from a meeting of a group of charities and others who want somebody to lobby—a Minister to argue with—about mental health funding in Northern Ireland. There have been no Ministers for 13 months. That cannot continue. Secretary of State, it is time to set a budget. Let the efforts for devolution continue—yes, we want to see devolution—but it is a dereliction of duty to continue without a budget and without ministerial decisions. It is time to get on with it.

--- Later in debate ---

[Karen Bradley]

I thank the right hon. Gentleman for his assertion of the DUP’s commitment to devolved government, which is warmly welcomed by everyone. He and I have had and will continue to have discussions about the budget. The shadow Secretary of State asked whether I would be consulting the parties about the budget. I have committed to do that and will ensure that I work with the right hon. Gentleman and his party’s Members on that. He fervently summed up the reasons why devolved government is so important.

[Dr Andrew Murrison (South West Wiltshire) (Con)]

I congratulate my right hon. Friend on her statement and warmly welcome seeing my right hon. Friend the Member for Old Bexley and Sidcup (James Brokenshire) back in his place and in fine form.

The head of the Northern Ireland civil service said to the Northern Ireland Affairs Committee on 24 January:

“It will be incredibly difficult for us if we do not have budget certainty by 8 February.”

It is now 20 February. What will the Secretary of State now do to set a budget and therefore the political direction that Northern Ireland so needs?

[Karen Bradley]

I thank the Chair of the Northern Ireland Affairs Committee. As I said in my statement, I am now working to ensure that we get certainty for civil servants in Northern Ireland—those dedicated public servants—and I will return to the House when I have further information.

[Mr Ivan Lewis (Bury South) (Ind)]

The Secretary of State was absolutely right to say that she was not willing to conduct a running commentary on the talks, but now that they have collapsed once again, should she not publish the basis on which the talks failed yet again? The people of Northern Ireland have a right to know the areas of difference and what still needs to be resolved.

[Karen Bradley]

As I explained in my response to the shadow Secretary of State, I was not present at the discussions held between the two parties. I facilitated them, but I was not present during them. It would therefore be inappropriate for me to speculate on exactly where the parties reached in discussing their concerns. It is a matter of public record, however, that I have said that the concerns related to the very difficult issues of language and culture and the sustainability of the Executive.

[Bob Stewart (Beckenham) (Con)]

Would there be any role for the Northern Ireland Legislative Assembly if direct rule, which nobody in this House wants, were to be instituted?

[Karen Bradley]

Some Opposition Members were Ministers during the previous period of direct rule—the right hon. Member for Delyn (David Hanson) will be asking a question shortly—and it was clear then that there was no role for Members of the Assembly at that point.

[Sammy Wilson (East Antrim) (DUP)]

It is clear from the talks and their failure that the structures of the Belfast agreement have given a power of veto and blackmail to Sinn Féin. Given that there will be no giving in to that blackmail, will the Secretary of State recognise that, in the absence of the ability to set up an Executive, the only way forward for proper governance in Northern Ireland is for her to start taking some of the decisions that are important for the day-to-day running of Northern Ireland?

[Karen Bradley]

As I said in my statement, I want to see devolved government in Northern Ireland, I want the politicians elected by people in Northern Ireland to be able to take their places and represent them in the Assembly, and I want an Executive in place. That is what I am focused on trying to deliver as best we can, as I think Members on both sides of the House have stated.

[Nigel Mills (Amber Valley) (Con)]

Will the Secretary of State set out what role, if any, the smaller parties played in the talks last week?

[Karen Bradley]

All five parties were involved in the talks, including some roundtable talks. However, the clear point is that, for an Executive to be formed, the two large parties need to reach an accommodation. That is what we were working towards, and what I would like to happen in the near future.

[David Hanson (Delyn) (Lab)]

In the welcome absence of direct rule, of which I had personal experience as a Minister, will the Secretary of State tell the House how she will bring forward the budget, what form the approval of that budget will take and whether, as the hon. Member for Beckenham (Bob Stewart) asked, Assembly Members will make any contribution to the discussions of the proposals in it?

[Karen Bradley]

I know that the right hon. Gentleman served as a Minister during the last period of direct rule. I have been led to believe that there was a small incident involving a football match—Wales versus Northern Ireland—when he possibly found it difficult to know which side to support. I have said that I will come back to the House on the budget.

[Kevin Foster (Torbay) (Con)]

I welcome the Secretary of State’s statement. I know that for her, as for me, the priority will be to ensure that the peace process keeps on track. Will she therefore outline in some detail what exactly direct rule would mean for the people of Northern Ireland and for this House?

[Karen Bradley]

My focus is on getting devolved government back up and running because people want to know that their elected politicians—the people they have elected locally—will make the decisions for them. Those of us who believe in devolution, be it locally in our constituencies or in the devolved Administrations, know that, when local people make decisions, they are more representative of what voters want. That is why it is so important to get devolved government back up and running.

[Vernon Coaker (Gedling) (Lab)]

I welcome the Secretary of State’s continuing commitment to the Good Friday agreement, but does she agree that being more open and transparent about what happened in the talks—notwithstanding the fact that she says that she cannot do that because they were conducted by the Democratic Unionist party and Sinn Féin—and explaining to the public the problems and where the parties failed to agree might mean that they were in a position to support more properly the leaders of their respective communities who are trying to reach a deal?

[Karen Bradley]

As I have said, it would not be appropriate for me to speculate on what happened behind closed doors at a meeting between the two parties. They are now working to see what they can do to come back to the table, and that is what I am encouraging.

[Edward Argar (Charnwood) (Con)]

I join in the tributes to my right hon. Friend for her determination and work on this issue.

Northern Ireland has enjoyed significant economic success in recent years, largely down to the dynamism of the people of Northern Ireland, but also to the conditions that effective, devolved, power-sharing government created. Does she share my view that certainty about a budget and the restoration of a devolved power-sharing Government are the most effective ways in which to ensure that that economic success continues?

[Karen Bradley]

I agree with my hon. Friend. I have said that I will come to the House about the budget. Last Friday, I met business representatives in Belfast and they were unanimous that they needed their politicians to form an Executive so that they could encourage investment, create jobs and wealth and build on the fantastic success story that is Northern Ireland.

[Mr Gregory Campbell (East Londonderry) (DUP)]

My party remains committed to total restoration of an Executive on a fair and equitable basis, and I commend the Secretary of State for what she has said. As was mentioned earlier, the head of the civil service said that it would be incredibly difficult for us if we did not have budget certainty by 8 February—we are now two weeks beyond that. Does she therefore agree that the important matters that divide us are not life and death matters that require a budget to resolve them? She has the power to set one—when will she do it?

[Karen Bradley]

As I said, I need to consult the parties about the budget and I will return to the House at the earliest opportunity with confirmation of my decision on that.

[Rebecca Pow (Taunton Deane) (Con)]

I welcome the Secretary of State’s continuing optimism and urge her to press on, not least because, with Brexit on the horizon, Northern Ireland needs one voice, provided by a functioning Executive, to make it the best Brexit deal not just for Northern Ireland but for the whole of the UK. Does she agree that, on this issue, time is of the essence?

[Karen Bradley]

I do agree with my hon. Friend. We need to make sure Northern Ireland’s voice is heard properly through the proper processes in the Brexit process, and that requires a devolved Government.

[Conor McGinn (St Helens North) (Lab)]

The British and Irish Governments are the guardians of the Good Friday agreement, but its owners are the people of Ireland, north and south, who overwhelmingly endorsed it in referendums. Does the Secretary of State agree that it cannot be usurped by this House, by any party or by any individual in it, and that she will work for its full implementation, alongside the Irish Government?

[Karen Bradley]

I do agree.

[Mr Philip Hollobone (Kettering) (Con)]

By how much is my right hon. Friend going to cut their pay?

[Karen Bradley]

A quick answer deserves another quick question, does it not, Mr Speaker? Mr Trevor Reaney has made recommendations on the pay of Members of the Legislative Assembly, and I am considering those at the moment.

[Kate Hoey (Vauxhall) (Lab)]

The people of Northern Ireland will be disappointed in the Secretary of State’s statement. Of course they would like the Executive back, but what they want more than anything is a budget, and agreement on reform of the health service and education, which were all agreed before Sinn Féin walked out. Why is she still dilly-dallying, and waiting and waiting? What does she actually think is going to be achieved in the next month?

[Karen Bradley]

I am exploring every possible window of opportunity to get devolved government back up and running, while looking at those important decisions that need to be taken. I will revert to the House on those matters.

[Lady Hermon (North Down) (Ind)]

I warmly commend the Secretary of State for her calm and positive tone in her statement today and her response to questions. I am very pleased that the British Government have not been bounced into moving to direct rule. The people of Northern Ireland want their Assembly up and running—it is their Assembly—and they were extremely disappointed and angry last week when the talks collapsed. I am not pointing the finger of blame, because that is not going to help anybody, but the people of Northern Ireland will also be extremely angry that MLAs are receiving their full salary. What possible justification can there be for paying them a full salary 13 months after collapsing the Assembly?

[Karen Bradley]

I thank the hon. Lady for her comments. My predecessor did ask Trevor Reaney to look at this matter. I will be considering the recommendations and will come back to the House shortly.

[Mr Chris Leslie (Nottingham East) (Lab/Co-op)]

Does the Secretary of State share my anxieties at the noises—the drum beat—coming from some of the hard Brexit quarters in the debate about how the Good Friday agreement has “failed” and “outlived its use”? Will she take this opportunity to reassert the Government’s view that nothing—no Brexit ideology and no attempt to justify instituting a new border—should jeopardise this carefully brokered peace settlement and that the Government are fully, 100% behind the Good Friday agreement?

[Karen Bradley]

I can confirm that the Government are 100% behind the Belfast agreement and that it was specifically referenced in the joint report as being of great relevance and importance to everybody in Northern Ireland.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

The common structures of the EU provided the basis of a peace in Ireland via the Good Friday agreement. Is not the reality that the British Government have failed to recognise that in their Brexit positioning and that maintaining the agreement has been a secondary consideration?

[Karen Bradley]

I do not agree with that assessment.

[Joanna Cherry (Edinburgh South West) (SNP)]

As has been said, in the past 48 hours, a couple of Members of this House and a British MEP have attacked the Good Friday agreement as “failed” and “unsustainable”. Will the Secretary of State join the Tanaiste, Ireland’s Deputy Prime Minister, in condemning such language as “irresponsible”?

[Karen Bradley]

As I say, I can only set out the Government’s position, which is that we fully support the Belfast agreement.

[Mike Kane (Wythenshawe and Sale East) (Lab)]

A young generation in Ireland, north and south, and on the mainland have no recollection of violence because of the Good Friday agreement. Therefore, does the Secretary of State agree that those who are playing fast and loose with that agreement for their own terms over Brexit should not be doing so?

[Karen Bradley]

I agree that people do not remember what it was like; my children visited Northern Ireland recently and were astonished to see that there are still walls between communities. That was a shock to them because they had no idea about what the troubles were like and what it was like for people living there. The people of Northern Ireland have come so far in 20 years, and it is vital that we restore devolved government and maintain the Belfast agreement.

[Paul Girvan (South Antrim) (DUP)]

I thank the Secretary of State for her statement. In the light of the failure of the talks and what has ultimately happened, the vacuum has been filled by those who wish to bring about more Dublin interference in Northern Ireland. Will the Secretary of State assure us that Dublin will have no say in the running and governance of Northern Ireland?

[Karen Bradley]

We have been clear that the three-stranded approach has applied in everything we have been doing. Strand 1 issues clearly do not involve the Irish Government. The hon. Gentleman will know that the best way to ensure the protection of the Union and that the people of Northern Ireland have their say is the restoration of devolved government in Stormont.

[Ged Killen (Rutherglen and Hamilton West) (Lab/Co-op)]

I urge the Secretary of State to get off the fence in respect of same-sex marriage in Northern Ireland. We simply would not tolerate such discrimination against any other group of UK citizens. It is not acceptable that the Government continue to be complicit in discrimination against LGBT people in Northern Ireland. Will the Secretary of State support efforts in this place to bring forward change?

[Karen Bradley]

This is a devolved matter. I was proud to vote for same-sex marriage for my constituents in this House when we had that vote, but I did not vote to impose same-sex marriage in Scotland. It is not the job of this Government to introduce legislation; it is for the people of Northern Ireland and their elected politicians to make the decision.

[Christine Jardine (Edinburgh West) (LD)]

Given the Secretary of State’s stated determination to reinstate devolved government in Northern Ireland, does she agree that perhaps the time has come for the appointment of an external mediator to chair the power-sharing talks?

[Karen Bradley]

I have been clear that I rule nothing out. Everything is under review and I will look at all viable options to ensure that we get devolved government back up and running.

[Gavin Robinson (Belfast East) (DUP)]

In situations such as this, we will always get verbal excess or an aspirational wheeze from some of the participants. Will the Secretary of State indicate clearly that nowhere in the Good Friday agreement, the St Andrews agreement, the legislation that underpins them or the constitution of this country is there provision for joint authority?

[Karen Bradley]

I fully respect the Belfast agreement and the successor agreements. We adhere to the three-stranded approach very strictly.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State for her statement. Will she outline the timeline for the imposition of direct rule as it is legislated for in this place, to ensure that the people of Northern Ireland do not continue to be led by the nose by Sinn Féin, a party that does not have the interests of Northern Ireland at heart but seeks only the destruction of the state of Northern Ireland in an attempt to secure an unwanted and unworkable Ireland that is never, never, never going to happen?

[Karen Bradley]

My priority, focus and energies are on the restoration of devolved government in line with the Belfast agreement. That is what I will be focusing on and that is what I am determined to achieve, alongside addressing the urgent issues, including the budget, that need to be dealt with in the very near future.

Cross-border Crime

Karen Bradley Excerpts

Wednesday 11th March 2015 Commons Chamber

[The Parliamentary Under-Secretary of State for the Home Department (Karen Bradley)]

I congratulate the hon. Member for South Antrim (Dr McCrea) on introducing the debate and the hon. Member for North Antrim (Ian Paisley) on his concluding comments. It has been an interesting and passionate debate and in my closing remarks I will endeavour to address the points that were made.

As we heard, serious and organised criminal groups do not operate in isolated pockets. We know, for instance, that they exploit the land border between Northern Ireland and the Republic of Ireland. As the motion reminds us, they are engaged in a range of crimes, including fuel smuggling, the supply of counterfeit medicines and electrical goods, and fraudulent trading in numerous products to evade VAT or make illegal repayment claims. VAT fraud associated with tobacco and alcohol has become more sophisticated and more multinational, and the internet has opened more opportunities for the criminals. The cost to the Treasury is substantial and the impact is felt in communities throughout Northern Ireland.

A number of hon. Members referred to the fact that these are not victimless crimes. The hon. Member for Belfast East (Naomi Long), my hon. Friend the Member for Amber Valley (Nigel Mills) and the hon. Member for Foyle (Mark Durkan) made that point explicitly, and they are right. The effect of fuel laundering, which has been a major part of the discussion, means that it is clearly not victimless. The hon. Member for Belfast East spoke about the impact on the vehicles of unsuspecting purchasers of illicit fuel. The impact on us all from the loss of that tax revenue means that we have less tax from which to pay for much-needed teachers, nurses and police officers. People purchasing that fuel are aiding and abetting the criminals. This is not victimless crime. The people involved in such criminality are not cheeky scoundrels. This is serious crime that is a threat to us all.

Our strategic approach needs to be tightly co-ordinated to counter that threat; otherwise, serious and organised criminals will exploit the gaps. We need to ensure that measures are in place relentlessly to disrupt serious and organised criminals, stop people getting involved in crime and strengthen our protection against the criminals. The UK Government and the Northern Ireland Assembly are doing exactly that. The launch in 2013 of the National Crime Agency and the serious and organised crime strategy represented a step change in our approach. The NCA and the 4 Ps strategy are already making a difference, leading to a more co-ordinated response across the whole United Kingdom. As a result, we have improved our understanding of the threat, strengthened co-operation with partners, invested in better capabilities and introduced important new legislation.

Implementation of the serious and organised crime strategy is consistent with the approach in Northern Ireland, where the Organised Crime Task Force enables law enforcement agencies to work alongside other Government bodies and the private sector to share knowledge and tackle organised crime in partnership and to deliver the objectives of Northern Ireland’s organised crime strategy for 2014-16. Leading the operational fight are the PSNI, HMRC and the National Crime Agency.

The NCA works closely with its partners to investigate the activities of organised criminal groups, including those involved in fuel smuggling, fuel laundering and the counterfeiting of consumer goods. The NCA is a key member of the OCTF in Northern Ireland, providing specialist knowledge, support and expertise. It continues to support the PSNI through the exchange of intelligence and information relating to Northern Ireland, including instances where the situation has required constabulary powers to be exercised. The NCA is undertaking civil recovery investigations in Northern Ireland, where fuel laundering and cigarette smuggling are believed to be the underlying criminality.

It is clear that fuel smuggling and laundering is a major problem in Northern Ireland. I was interested in many of the points that were raised, including the comments of the hon. Member for Belfast East about criminals. If something seems too good to be true, it probably is too good to be true. This is a supply chain issue that the hon. Member for Foyle and I explored at length when we served together on the Committee considering the Modern Slavery Bill. He is right to commend the Bill for covering Northern Ireland where necessary, as does the remit of the commissioner. He made an interesting point about the impact on human trafficking and modern slavery. Sometimes we say that the criminality of organised crime groups lies in drugs trafficking, firearms trafficking or people trafficking, but in reality those groups are involved in all forms of criminality. That was brought home to us all by the dreadful case of the container in Tilbury docks with 35 Sikh people in it, including one who, sadly, died in transit. Part of the investigation of that incident involved a fuel laundering plant. That brings it home that this is not a victimless crime; it is a crime that affects us all, and those criminals are nasty people who want to harm us and are prepared to go to great lengths and hurt many people through different types of criminality to make money from organised crime.

We have heard from my fellow Minister, my hon. Friend the Member for South West Wiltshire (Dr Murrison), that the Government have a comprehensive strategy in place to tackle fuel fraud and crime and it is working. HMRC’s latest figures indicate the illicit market share of diesel for Northern Ireland has fallen from 26% to 13%. Co-operation and intelligence sharing through the Organised Crime Task Force and the Cross Border Fuel Fraud Enforcement Group has been invaluable in tackling oil fraud, including fuel smuggling and laundering, and I remind the House that in 2013-14 HMRC dismantled 38 laundering plants, closed 79 huckster sites and seized over half a million litres of illicit fuel in Northern Ireland.

As has been said, a new fuel marker will come in on 1 April. Many Members, including the hon. Members for North Antrim, for East Antrim (Sammy Wilson), for Belfast East and for Upper Bann (David Simpson)—and I am sure there were more—raised that point.

[Ian Paisley]

The Minister refers to some of my party colleagues. My hon. Friends the Members for South Antrim (Dr McCrea) and for Upper Bann (David Simpson) mean no discourtesy to the Minister, whom I know they are very fond of, but they have had to leave the Chamber because of a meeting tomorrow morning with a Minister in Northern Ireland. I hope the Minister will appreciate that they had to catch their flight.

[Karen Bradley]

I appreciate that intervention, apart from anything else because I am not going to have to answer yet another question from those hon. Gentlemen, who gave me a significant number to try to address. I do understand completely the time pressures we all face, however.

I understand that HMRC is making sure it has the best and most appropriate roadside marker testing equipment, further to strengthen testing capability. From day one of the new marker implementation, its road fuel testing units will be able to use their existing battery of tests to identify suspicious samples, and I should repeat the point that this is not a replacement marker initially; this is a running-alongside marker with the existing marker, to ensure we have full evidence and information. I also understand that, in addition, HMRC expects to have ground-breaking roadside testing equipment by the summer.

The hon. Member for North Antrim made a number of points and I understand that HMRC has written to him on many of them, in particular the point about the new marker being easily laundered and that that can be done on a commercial scale. I urge him to provide details of any trials about which he believes HMRC may be unaware. It does want to review the report he has laid in the House, and it will respond to him. The Government will of course review the report as well, and HMRC has investigated whether this can be done on a large scale. The hon. Gentleman says he has seen the test to prove that that is the case. If he provides that evidence to HMRC, it will review the report and write to him, but the only large-scale test that we are aware has been undertaken, which was with 25,000 litres, fully supported HMRC’s conclusion that this is not easily translated to large-scale operations in the field. We do take these claims very seriously, however, and HMRC will look at any reports that the hon. Gentleman provides.

The hon. Member for South Antrim talked about the number of arrests and prosecutions for this crime. In the period 2011-14 there was a total of 56 arrests for fuel fraud, and 47 of them were in Northern Ireland, while just nine were in the rest of the United Kingdom. We have not, of course, yet got the full figures for 2014-15, but the latest information is that there were 25 arrests, 13 of which were in Northern Ireland and 12 in the rest of the UK. That shows that we take this crime very seriously, including in Northern Ireland.

Confiscation was also mentioned. In 2013-14, the last year for which we have figures, £113,001 was applied on confiscation orders relating to this type of crime, of which £113,000 related to confiscation orders in Northern Ireland, with only £1 relating to the rest of the United Kingdom. The hon. Member for Birmingham, Erdington and I have enjoyed many debates on the topic of asset recovery, and we agree that we want to see more confiscation orders and more recovery. The Government take this issue seriously and progress is being made.

HMRC’s anti-smuggling strategy is effective, and we continuously adapt it to accommodate changes in criminal behaviour. Since it was first launched, we have reduced the illicit cigarette market by half and the illicit hand-rolling tobacco market by a third, but we all recognise that more can be done. The hon. Member for East Antrim contributed to yesterday’s debate on the order to bring the National Crime Agency into Northern Ireland. I want to put it on record that, in regard to the priorities for policing and the NCA in Northern Ireland, the Northern Ireland Policing Board will agree the NCA annual plan. That will allow key crime types, which may include fuel laundering, to be prioritised for the NCA in Northern Ireland.

One of the blockages to having full support in Northern Ireland has been the limit to the NCA’s ability to provide support to HMRC and the PSNI in Northern Ireland. That related to the powers issue, and thankfully that issue is now resolved. Yesterday, we debated and approved in Committee here, and in another place, the draft Crime and Courts Act 2013 (National Crime Agency and Proceeds of Crime) (Northern Ireland) Order 2015. The order will enable the NCA to operate with police powers in Northern Ireland from around the end of May. It puts in place accountability arrangements for the NCA that have been agreed with the Northern Ireland parties. It also extends civil recovery provisions and civil recovery investigation provisions under the Proceeds of Crime Act 2002 to Northern Ireland. This will increase activity and improve performance, alongside the efforts of other accredited financial investigators in Northern Ireland, such as the Serious Fraud Office, the PSNI and the Environment Agency. Perhaps that will answer the question from the hon. Member for Foyle about waste crime.

We are also strengthening the provisions of the Proceeds of Crime Act through the Serious Crime Act 2015. The hon. Member for Birmingham, Erdington and I served on the Committee that considered that legislation. Its provisions will make it harder for criminals to move, hide and use the proceeds of crime through the better enforcement of existing court orders and the better recovery of hidden assets overseas. These steps are important, as denying criminals the proceeds of crime is one of the most effective ways of disrupting their activities. We agree that, so far, not enough has been recovered, but with these enhanced powers, the NCA, working with law enforcement, will be able to recover more. I urge the courts to ensure that confiscation orders are applied whenever possible, and that compensation orders for victims are also put in place.

The hon. Member for Foyle also raised concerns about engagement with communities. The Crime and Courts Act 2013 (National Crime Agency and Proceeds of Crime) (Northern Ireland) Order 2015 that we approved yesterday provides that the Northern Ireland Policing Board must make arrangements for obtaining the co-operation of the public with the NCA in the prevention of crime. The hon. Gentleman will recall that, as part of the Justice Minister’s proposal paper, there will also be a requirement for NCA officers to have a duty to secure the support of, and to act in co-operation with, the local community. Additionally, the order provides that the NCA’s director general must obtain the Policing Board’s prior consent to the Northern Ireland aspects of the NCA’s annual plan.

Serious and organised criminal groups do not respect borders or force boundaries. The PSNI estimates that there are around 150 organised crime groups active in Northern Ireland. Nearly a third of those groups are assessed as having links to international criminality, and another third are linked to criminality in the rest of the UK and the Republic of Ireland. HMRC operates across the UK as a whole, and the National Crime Agency has both national and international reach. They are working more closely than ever before with the PSNI and other partners to disrupt organised criminal groups undertaking fuel laundering and smuggling in Northern Ireland and to deny criminals the proceeds of that crime. As has been said, we will not oppose this motion, and I want to thank everybody for the debate. I look forward to Northern Ireland seeing the benefits of the NCA that the rest of the UK has benefited from since October 2013.

Question put and agreed to.

Resolved,

That this House notes with concern the continued prevalence of serious organised criminal activity in Northern Ireland on a cross-border basis in relation to fuel smuggling, fuel laundering and the counterfeiting of consumer goods; recognises that this has had a significant and detrimental impact on HM Treasury; regrets the lack of prosecutions in relation to this activity; and calls on the Government to ensure greater co-operation between HM Revenue and Customs, the National Crime Agency and the PSNI so that this criminal activity can be eradicated.