Northern Ireland (Stormont Agreement and Implementation Plan) Bill

Lady Hermon Excerpts

Monday 22nd February 2016 Commons Chamber

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

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

The Bill gives effect to key elements of the fresh start agreement of 2015 and the Stormont House agreement of 2014. It is an important stage in the implementation of those agreements, which, taken together, have the potential to help us to secure a more peaceful, stable and prosperous future for Northern Ireland.

Before turning to the detail of the clauses, I will remind the House of the background to their contents. As the House will recall, following just over 10 weeks of intensive talks, the Government, the Northern Ireland Executive parties and the Irish Government reached the Stormont House agreement on 23 December 2014. It addressed many of the most significant challenges facing Northern Ireland. Some of those challenges, such as the long-standing disagreements over flags, parading and the past, were deeply damaging to political relationships within the devolved Executive and were fuelling community divisions. Others, particularly the state of the Executive’s finances and disagreements over welfare reform, were jeopardising the effectiveness and sustainability of devolution itself.

The Stormont House agreement included proposals to give the Executive a workable and sustainable budget; to set a path towards resolving contentious issues around flags, symbols and parading; to establish new bodies to help to tackle the legacy of Northern Ireland’s past; and to deliver reforms at Stormont to make devolution work better. All of that was underpinned by a financial package that gave the Executive about £2 billion of extra spending power.

The Stormont House agreement was and remains a good deal for Northern Ireland. However, by last summer, it was clear that implementation had stalled. That was largely due to disagreements in the Executive over the budget and finances, at the heart of which was the decision by the nationalist parties to withdraw their support for the welfare reform package agreed at Stormont Castle the preceding December. As the stand-off continued, it had the knock-on effect of preventing decisions on other elements of the agreement from being taken. Sadly, the sense of crisis was intensified by two brutal murders in Belfast, one in May and one in August, which once again raised the spectre of the malign influence of continued paramilitary activity on the streets of Northern Ireland.

As we entered last autumn, the political situation looked increasingly perilous. We faced the prospect that resignations might trigger early Assembly elections. That could easily have led to the collapse of the devolved institutions and a return to direct rule from Westminster. That would have been a major setback after all that has been achieved under successive Governments during the past 20 years. It was an outcome that the Government acted strenuously and decisively to avoid.

First, in a speech in Cambridge on 5 September, I made it clear that we could not let the financial impasse continue indefinitely and that if there was no resolution to the dispute, we would be left with no option but to legislate in Westminster for welfare reform.

Secondly, following discussions with my right hon. Friend the Prime Minister, it was decided that the time was right to convene a second round of cross-party talks, which began at Stormont House on 8 September. Once again, the talks included the five largest parties in the Northern Ireland Assembly and the Irish Government on matters for which they are responsible, in accordance with the long-established three-stranded approach to Northern Ireland affairs. The objectives we set ourselves were twofold: to secure the full implementation of the Stormont House agreement and to deal with the impact of continued paramilitary activity.

The talks once again lasted for 10 weeks and concluded on 17 November with a document entitled “A Fresh Start: The Stormont Agreement and Implementation Plan”, which was agreed between the UK Government, the Irish Government and the two parties representing a majority of Unionists and nationalists in the Executive. In the Government’s view, that agreement goes a long way towards satisfying the objectives that the participants in the talks set themselves. It gives the Executive a stable and sustainable budget that includes welfare reform; it unblocks progress on other crucial elements of the Stormont House agreement, including institutional reform; and it strongly reaffirms support for the rule of law and places fresh obligations on Northern Ireland’s political representatives to work together with determination to rid society of paramilitary activity and groups. This agreement, like the previous one, was underpinned by a financial package from the UK Government, this time worth up to £500 million.

I can inform the House that progress on the implementation of the fresh start agreement has been good. On 18 November, the day after it was reached, the Assembly passed a legislative consent motion for Westminster to go ahead with welfare legislation. The subsequent Northern Ireland (Welfare Reform) Act 2015 was given Royal Assent on 25 November and the related order was passed in early December. The Government are working closely with the Executive on the extensive secondary legislation that is required to deliver the new welfare system in Northern Ireland. We hope to be in a position to begin bringing that forward shortly, with a view to completing its passage through both Houses as soon as we can.

On 21 December, the UK and Irish Governments, along with the Northern Ireland Executive, established a Joint Agency Task Force to reinforce efforts to tackle cross-jurisdictional organised crime. The Executive have established the three-person panel envisaged by the agreement to make recommendations for a broad-ranging strategy to disband paramilitary groups. The appointments process for the new flags commission is under way. A Bill to reduce the number of Government Departments from 12 to nine has completed its consideration in the Assembly. A further Bill to reduce the number of Members of the Legislative Assembly per constituency from six to five is set for its final stage of consideration in the Assembly tomorrow.

The Bill before the House today represents further significant progress, dealing with elements of the fresh start agreement that require UK Government legislation. Clauses 1 to 5 make provision to put into effect a treaty, to be agreed between the UK and Irish Governments, that will establish the independent reporting commission. The Bill sets out the commission’s primary objective to promote progress towards ending paramilitary activity connected with Northern Ireland. It will report on progress towards that objective and on the implementation of relevant measures by the UK Government, the Irish Government and the Executive that were agreed in the fresh start agreement. The Bill makes provision for key aspects of the new commission’s work, including the duties to which it will be subject and the legal privileges to be conferred on it as an international body. These are intended to ensure that the commission is able to engage with a range of sources of information in performing its important functions, but will avoid doing anything that might put life, safety or national security at risk. I appreciate that hon. Members will wish to see the text of the treaty. It has not been possible to provide that today, because it has not yet been agreed between the UK and Irish Governments, but we will of course place a copy in the Library of the House in due course as soon as we can.

Clause 6 and schedule 1 will extend the time available for the allocation of ministerial positions in the Executive from seven to 14 days after the Assembly meets following an election. The purpose of the change, as set out in the Stormont House agreement, is to allow parties more time to agree a programme for government on a cross-party basis prior to the allocation of ministerial positions. It is hoped that this will encourage a more bipartisan approach to the programme for government.

Clause 7 will amend the pledge of office for Ministers in the Northern Ireland Executive, reflecting strong commitments set out in the fresh start agreement to give unequivocal support for the rule of law and to work collectively to achieve a society free of paramilitarism once and for all. Clause 8 will introduce a similar undertaking by all Members of the Assembly.

Clause 9 will implement the commitments in the fresh start agreement for the UK Government to legislate, with Assembly consent, to increase fiscal transparency in Executive budgets, thus helping the Executive to deliver an affordable and sustainable budget.

[Lady Hermon (North Down) (Ind)]

If I may take the Secretary of State back to clause 8, I am very pleased about the introduction of a new pledge for all MLAs. They will not be able to participate in any proceedings, or do anything within the Assembly, unless and until they have taken the new pledge. When they have taken the new pledge, however, what sanctions will there be if they fail to honour it, and who will decide?

[Mrs Villiers]

Naturally enough, any sanctions relating to the actions of MLAs are matters for the Assembly, rather than for the Chamber and the legislation proposed here today. I am grateful to the hon. Lady for her intervention.

Clause 9 provides that the Northern Ireland Finance Minister will have a duty to specify—

[Lady Hermon]

I am terribly sorry to intervene on the Secretary of State again, but if I may say so that was a rather flippant response and not at all characteristic—she is always so well briefed. Clause 8 actually states:

“Standing orders shall provide for the procedure for giving the undertaking.”

It does not say in clause 8 that Standing Orders will be passed in the Assembly on sanctions for MLAs who do not honour the new pledge, so it must be in this proposed legislation.

[Mrs Villiers]

I am very sorry. I did not mean for my answer to sound flippant or not serious. It remains the case that the Bill does not provide for sanctions and neither does the fresh start agreement. In terms of internal matters of discipline within the Assembly, that really is a matter for the Assembly itself to determine. What I can provide further clarification on is that an individual who refuses to give the undertaking will not be able to participate in Assembly proceedings, or receive any of the privileges of office or salary.

Clause 9 provides that the Northern Ireland Finance Minister will have a duty to specify to the Assembly the amount of Government funding available, as notified by the Secretary of State. The Minister will have to show, when delivering a draft budget, that the amount of Government funding required by that draft budget does not exceed the amount specified as being available.

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[Vernon Coaker]

That is a helpful response. I think that everyone in the House—and, indeed, in Northern Ireland—will have heard what the Secretary of State has said, which implies that she is open to making money available both to the PSNI and to the Coroners Service. I think that that is what victims would expect. They know that it is difficult to reach an agreement on how to deal with the past—and, although the institutions, or the proposed institutions, are there, agreement has not been reached—but, at the same time, work has to be done. Given that the money is there, we would support the Secretary of State if she—or, for instance, the Treasury—estimated at any point that at least some of the money could be released to enable that work to be done as soon as possible, because I think that people in Northern Ireland would expect it to be done as soon as possible. The First Minister would have been pleased to hear what the Secretary of State has said.

The House has been in the habit of dealing with Northern Ireland legislation in one day, but we believe that that should happen only when the need is truly urgent. We supported an emergency procedure with respect to welfare reform, and I promised the Secretary of State when I resumed my current role that we would maintain a bipartisan approach based on the principle of consent. I hope that our actions have demonstrated that commitment, but I want to make it clear that in this instance we have agreed to an expedited procedure rather than an emergency process. This procedure allows us more time to consider the Bill, while still making it possible for us to secure Royal Assent before the approaching Northern Ireland elections. I assume that any necessary legislative consent motion will be forthcoming in order to ensure that measures relating to the pledge of office, the MLA undertaking, and extension of the time available for ministerial appointments are in place in time for the Assembly's return. I am told that the Northern Ireland parties themselves are keen for that to happen.

The hon. Member for Foyle (Mark Durkan) made a fair and reasonable point about discussion of the legacy issues in due course. I think that anyone in Northern Ireland would expect discussion of those significant and important issues to take place by means of due process in the House, and not to be speeded up.

[Lady Hermon]

Will Her Majesty’s Opposition be tabling amendments to clause 8 to make it absolutely clear that a sanction will be applied to MLAs who make the pledge and take their seats, but then do not abide by the pledge that they have made? There is a code of ministerial responsibility for members of the Executive, and there are sanctions, but there are no sanctions in the Bill, and that is an obvious omission.

[Vernon Coaker]

I will say something about pledges later in my speech, but, whether we table amendments or not, I think that the hon. Lady is right to ask for clarification. I shall be quoting one of the pledges which contains a qualification, and I shall be asking what that means. Even if we accept that this is Stormont business, I think it is right for such questions to be asked in the House of Commons.

The Bill will establish an independent reporting commission to monitor progress towards ending paramilitary activity in Northern Ireland. That is a key aspect of it. Paramilitary activity is totally unacceptable and has no place in Northern Ireland, but we shall have to consider in Committee what progress has already been made, and why this initiative will work when others have not. How will progress be judged, and what will happen if it stalls?

The issue of disclosure will also have to be explored in Committee. It is bound to arise, because the Bill requires the Secretary of State to provide guidance on how national security and individuals are to be protected. We shall need an explanation in order to ensure that the problems that prevented an agreement on how to deal with the past do not happen again and prevent the Commission from working effectively—or, indeed, from working at all.

The Bill modifies the pledge of office to be taken by Northern Ireland Ministers, which was mentioned by the hon. Member for North Down (Lady Hermon). The revised pledge will include fresh obligations to work together on a shared objective of ridding society of all forms of paramilitary groups and activity, and the Bill introduces a parallel undertaking for Members of the Assembly, who must commit themselves to demonstrating a peaceful pursuit of change and progress. That is to be welcomed. However, the revised pledge includes seven newly agreed commitments, one of which is

“to accept no authority direction, or control on my political activities other than my democratic mandate alongside my own personal and party judgement”.

I think that, in Committee, Members may want to hear a full explanation of the qualification in that pledge.

The Bill extends the period allowed for the appointment of Northern Ireland Ministers, once the Assembly is elected, from seven to 14 days, which we hope will allow more time for a programme of government to be agreed. It also provides for the promotion of fiscal transparency and support for the Executive’s delivery of a stable and sustainable budget. It must be made clear what block grant the UK Government will provide, and how spending above that will be funded. I look forward to some interesting discussion of that in Committee.

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[Mr Nigel Dodds (Belfast North) (DUP)]

I welcome the debate on this Bill, and the DUP supports the Bill as well as the proposal to fast-track it. I commend the Secretary of State for her speech to the House, which was the latest in a number of wise statements that she has made on Northern Ireland and wider issues in recent days. I commend her for all those statements.

As a general rule, we are keen to see the fullest possible parliamentary scrutiny of legislation that affects Northern Ireland, and in the past a great deal of such legislation has been passed on an emergency basis. Although often that was unavoidable and understandable, we all accept—not least for the reasons outlined by the hon. Member for Tewkesbury (Mr Robertson)—that that was not the best way to operate. Often, such emergency legislation was the result of some breakdown or failure of the political process in Northern Ireland, and I am glad that the Bill does not fall into that category.

This Bill has been drafted as a result of political agreement, and not political disagreement or crisis. It is based on a political agreement from last November, and it has involved considerable consultation and work in the Northern Ireland Assembly and in the Northern Ireland Executive. The Bill is only part of the implementation process of the Stormont agreement. A long list of issues were agreed, and they are all being progressed and implemented either in the Assembly, through this House, or directly administratively by the Executive and other agencies, as set out by the Secretary of State. I welcome that progress. The Executive in Northern Ireland has already agreed that a legislative consent motion should be put before the Assembly for clauses that deal with devolved matters, and I understand that that motion will come before the Assembly in mid-March.

I am confident that despite the need to fast-track the Bill, we will have the opportunity for adequate consideration. It is important that a number of measures introduced by the Bill are in place so that when Assembly elections are held and the results come in, everything is in place for the new Assembly and Executive to operate under the new legislation, without any hiccup, delay, or question mark about that. In particular, it is essential that the House deals with the agreement of a programme for government, extending the period to appoint Ministers, new paragraphs for the pledge of office, and an undertaking for Members of the Legislative Assembly, before the Assembly is dissolved at the end of March.

[Lady Hermon]

In the light of the recent controversy surrounding the scrutiny of MLAs’ expenses, and—unfortunately—the damage that that does to public confidence in the operation of the Northern Ireland Assembly, does the right hon. Gentleman agree that the Bill would be an appropriate vehicle with which to introduce in Northern Ireland an institution comparable to the Independent Parliamentary Standards Authority, so as to rebuild public confidence in the expenses vetting procedure in Northern Ireland?

[Mr Dodds]

IPSA is a whole other area of debate, and I am sure it will evoke much argument and discussion in this House. The DUP suggested the introduction of an IPSA-style regime some time ago, but we could not get agreement on that. The First Minister of Northern Ireland made a speech on Friday night, outlining again the importance of transparency and of that matter being dealt with and taken forward in precisely that way. Whether the Bill is the right vehicle for that remains to be seen, because it would require agreement and consultation within Northern Ireland. That could—and indeed should—happen, and I encourage parties to do that. It is important to maintain confidence in the integrity of the Assembly. We in this House know what it is to have gone through that kind of controversy, and we want to ensure that things are progressed properly, openly, and with the utmost transparency.

However, when IPSA reported on expenses in Northern Ireland, it found a pretty satisfactory situation overall—it is not as if the entire situation was unsatisfactory. We must ensure that there is confidence, and I and the DUP support whatever steps are needed to introduce an open and transparent system in which such matters are not decided or administered by Members; I hope others will agree.

The Bill, as the Secretary of State has said, seeks to implement aspects of the fresh start agreement, which represents a new beginning for politics in Northern Ireland. I totally agree with what she said about the situation in Northern Ireland. It is more positive now. There is a more positive view of the Assembly and politics, because people have seen that agreement can be made. It was difficult, but things can get done when there is agreement and we can move forward. We must continue to build on that.

It was not, of course, possible to resolve every issue, especially in relation to the past. We have discussed that and will discuss it in much greater detail. Of course, it is not in the Bill—we should be discussing what is in the Bill—but I want to state again that, as far as our party is concerned, we are quite happy for the details of how far we got on all that to be published so that the victims, their families and all the people affected can see openly how much work is being done, how much progress has been made, where the gaps are and what needs to be done to bring the process to a conclusion.

The two issues that threatened imminent destruction of devolution at that time—paramilitary violence and welfare reform—have been addressed, agreed on and dealt with and are subject to provisions in the Bill. The resolution of the welfare reform issue was extremely important; the importance of resolving it cannot be underestimated. It was the single most important issue, from a financial perspective, to be resolved to allow the Assembly to function. I deeply regret that even after the fresh start agreement there were still Members of this House and of the Assembly who opposed the implementation of the agreement. They did not seem to recognise that without a budget that measures up and is sustainable, one cannot continue with devolution.

I am glad that there are politicians in Northern Ireland who are prepared to face up to reality, grapple with difficult problems and sit down to reach sensible outcomes through dialogue and agreement. I am pleased that this House was able to take forward the welfare reforms and the Northern Ireland Assembly was able to agree that the mitigations and some of the enhancements to the welfare system will be allowed to proceed as well. Of course, that is very important. We on these Benches would not have designed this welfare system for Northern Ireland, but it recognises the constraints and parameters within which we must operate financially while going a fair distance to meet some of the problems and issues raised by our constituents.

I am pleased that all the major targets under the fresh start agreement and the implementation plan are being met and that deadlines are being kept. Unlike with the Stormont House agreement of 2014, I believe that there is every reason to expect that every aspect will be implemented in full. On the welfare reform agreement, it is important to note that Eileen Evason’s group made recommendations that came in under budget and will be implemented by the Assembly and the Executive. That allows more money to be spent in other areas by the Executive, who have now passed a budget for next year ahead of time which has been dealt with by the Assembly as it should have been.

On the issue of paramilitary violence, the panel on paramilitary disbandment has been set up and has begun its work. The trilateral meeting to tackle paramilitarism, criminality and organised crime met before Christmas. The Executive are seized of the importance of making progress on this issue, because, at the end of the day, as we made very clear when the crisis blew up, we are not prepared to sweep these matters under the carpet. They must be faced up to by everyone who wants to see Northern Ireland move forward. There must be not only a commitment in words to democracy and the rule of law but an implementation of that in practice. That is why we on these Benches, and back in the Assembly, as elected representatives of the people, will not allow these matters simply to be ignored or to be used as a political football for a temporary political point-scoring exercise before being forgotten about. We are serious about these issues and we want them to be addressed, and to be addressed properly.

I am also glad that the Executive has agreed the reduction in the corporation tax rate to commence from April 2018. The reduction to 12.5% is an extremely important addition to the range of attractions that Invest Northern Ireland will be able to go out and promote across the world to possible investors and those who are interested in coming to Northern Ireland. I welcome that and express our gratitude to the Government for their support on this matter. Many parties and people who will no doubt claim credit now gave up on corporation tax. Our party never gave up on it. Some people said that the possibility was over and done with and would never happen—that is the reality—but we did not give up.

I pay tribute to the former First Minister of Northern Ireland, Peter Robinson, who made corporation tax a very important issue. He recognised the value of having the measure in place. Indeed, I pay tribute to him for the work he did, along with the Secretary of State and other parties, to make this fresh start agreement happen. His commitment to ensuring stability in devolution cannot be underestimated. He deserves an enormous amount of credit for the agreement. The corporation tax provision, in particular, was something that he felt very strongly about and that our party has always believed in. I am glad that it is now proceeding. When the First Minister goes to New York and Washington and to the west coast in March, along with the Deputy First Minister and others, the strength of her argument about coming to invest in Northern Ireland will have been greatly increased as a result of this agreement. This tax reduction is another reason why there should be investment in Northern Ireland.

The legislation to reduce the number of MLAs and reorganise and reduce the number of Government Departments is also nearing completion. As we heard, tomorrow there will be further debate on that. The Assembly has passed a resolution to allow an official opposition to be created and that work has been taken forward by the Assembly authorities. Nominations have been sought from the parties and applications sought from the public for the flags commission, and we expect that to be established by the end of March. There has also been progress made on the fiscal council and the compact civic advisory panel.

All in all, progress on the fresh start agreement has been very positive and has heralded a better atmosphere at Stormont, where things are getting done. The Bill is a further positive step in implementing what has been agreed. If I might say so in passing, it is an interesting commentary on the media that when there is a hold-up in the Assembly, a massive issue of confrontation on political issues, a stand-off or when things are not getting done, there is a mass of attention and commentary. We do not hear the same reporting or the same level of discussion in the media, on the radio and on television when things are getting done, day by day and week by week. Legislation has been passed and progress is being made, but it is as if nothing is happening at all. There is hardly any reporting at all—I do not hear about any of it. It is interesting how sometimes good news, positive developments and progress are massively under-reported in Northern Ireland, whereas anything negative or bad is given massive prominence.

As other Members have said, it is worth putting on record the distance that Northern Ireland has come and the progress that has been made. For all the backward steps and ups and downs, we have made enormous progress. The political institutions that came back after the St Andrews agreement have provided a much more stable environment and I believe that that needs to be celebrated.

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

I pay tribute to the Secretary of State and the Minister for all the work that they and their teams have done to bring forward this Bill. Having been involved in much of the negotiations in the past, I can say in all honesty—we should always give credit when it is due—that the Secretary of State has gone way up in my estimation for the clear stance that she has taken on issues both in the public domain and privately around the negotiating table. She has done so with great clarity and that is something to be welcomed from a Secretary of State. She has also been ably supported by the Minister.

I pay tribute to Mark Calway, who worked for my hon. Friend the Member for Tewkesbury (Mr Robertson). I had the pleasure of meeting him on several occasions as he took an interest in Northern Ireland. I know that my hon. Friend and his team will feel his loss very deeply, and we extend our sympathy to him and to Mark’s family.

Tackling paramilitarism is an important element of this agreement, and it is long overdue. As a party, we have pressed time and again for the paramilitaries to leave the stage. At times I have heard their spokespersons in the media talk about their big contribution to the peace process, but they have delivered little by way of the necessary steps. For far too long, they have been begrudging about the action that the paramilitary organisations need to take. They have continued to straddle the fence between democracy and the rule of law on the one side, and continued involvement in criminality and at times, sadly, in murder on the other.

One reason for the political crisis in Northern Ireland last year was precisely to do with this continued involvement by members of paramilitary organisations in criminal activity and in carrying out murders. As the hon. Member for Belfast South (Dr McDonnell) reminded us, those murders took place in his constituency. We need to be absolutely clear that there is no room for ambiguity, for grey areas or for straddling the fence between the rule of the law and involvement in criminality and paramilitarism. The people of Northern Ireland deserve better, which is why it is vital that we continue to pursue this agenda, and the Stormont agreement marks a significant step in taking it forward.

[Lady Hermon]

The right hon. Gentleman condemns paramilitarism, whatever shape or form it takes—loyalist paramilitaries as well as republican paramilitaries. In that connection, will he put on record his thanks, and the thanks of many people, to the Police Service of Northern Ireland for completing yet another search for the remains of Lisa Dorrian, who disappeared 11 years ago, and was murdered by those with loyalist paramilitary connections? Her family have never had her returned for a Christian burial, and tragically her mother died broken-hearted earlier this year. I would be grateful if the right hon. Gentleman condemned equally loyalist and republican paramilitaries.

[Mr Donaldson]

The hon. Lady speaks of the individual, personal and family suffering of the victims of paramilitary violence. Let me make it clear that when, as a party, we refer to paramilitarism we mean paramilitarism across the political divide. I had the pleasure of taking the Secretary of State and the shadow Secretary of State to Lisburn to visit a community project in my constituency. We have worked hard with people who were previously involved in paramilitary activity to enable them to complete the transition to what is now purely community development work, and those communities have been transformed as a result. For example, the Old Warren in Lisburn in my constituency has been transformed as a result of the transition of people previously involved in loyalist paramilitarism to purely community development. I commend the Resurgam Trust in Lisburn and its leadership for what they have done to transform that community by enabling those people to make that transition. I assure the hon. Lady that that is precisely the kind of effort that needs to take place in Northern Ireland.

It was one of the tragedies of conflict, and our troubles in Northern Ireland, that families not only suffered the loss of a loved one but were not able to mourn properly, because their loved one’s remains had not been returned to them. The family of Lisa Dorrian are a case in point, and we hope and pray that one day they will at least have the dignity of being able to bury the remains of their loved one. I appeal to those who know where Lisa Dorrian’s remains are to give that information to the police. I appeal to them on the grounds of basic Christian principles: even those involved in such wrongdoing should see that it is the right thing for a family to be able to have some degree of closure and have their loved one’s remains returned to them.

The Bill makes provision for the establishment of the independent reporting commission, which we welcome. The commission will report annually on progress on ending continued paramilitary activity, and we hope that it will shine a spotlight on republican and loyalist paramilitary groups that continue to engage in criminal acts and acts of violence. That will apply in Northern Ireland, but one of the important provisions in the Bill is that it will also apply in Great Britain and the Republic of Ireland. In recent times, we have seen the effects of paramilitary gangster-type activity in Dublin, which is unacceptable, and we must all co-operate to ensure that such activity is brought to an end. I hope that the good people of the Republic of Ireland, who go to the polls shortly, will think long and hard about who they elect to their national Parliament and where they stand on questions such as the special criminal court and the need to bring to an end paramilitarism, gangsterism and criminality, wherever they develop and emerge.

We welcome changes to the pledge of office for Ministers in the Northern Ireland Executive and, crucially, a new undertaking to be given by all Members elected to the Assembly after May that will commit them to non-violence and to supporting the rule of law. No such undertaking has been required in the past, even though an undertaking is required of councillors in local government. The hon. Member for North Down (Lady Hermon) is absolutely right: we need to be sure that it is not just a question of a paper exercise but that sanctions are in place so that if Members breach that undertaking they can be held to account. I assure her that we will examine the Standing Orders of the Northern Ireland Assembly to see whether such a sanction exists. If it does not, we are prepared to introduce and support an amendment to the Bill to ensure that provision is made for such a sanction.

The hon. Member for Belfast South (Dr McDonnell) and others have made reference to things that are not in the Bill, and it is a matter of regret that we cannot yet legislate for the provisions of the Stormont House agreement dealing with legacy matters. The Democratic Unionist party supports full implementation of the Stormont House agreement. We are doing nothing that holds back implementation of the agreement. We are all aware that implementation has not taken place because of a stand-off or impasse on the question of national security. Here I differ from the hon. Gentleman. He talked about victims, but I am interested not just in the victims of the past but in ensuring that we do not have more victims in future. When we take action that compromises the security of our people and brings into the public domain the manner in which the security forces operate to counter terrorism we put people at risk in Northern Ireland. We put lives at risk, and we create the potential for future victims in Northern Ireland, because sadly not everyone has signed up to the peace process. Not all paramilitary organisations are on ceasefire. People out there today are targeting others—in my own constituency, in the past couple of weeks there have been two instances of prison officers having to leave their home because of threats from dissident republican organisations.

Knowledge and intelligence have, thankfully, prevented attacks from going ahead, which tells us that our security services continue to operate to prevent loss of life and prevent further victims from being created. I would say to the hon. Member for Belfast South and the Social Democratic and Labour party that, yes, we want the maximum disclosure that is available, but we also need to ensure that the security of the people we represent is protected. Yes, we want processes to be in place for innocent victims of terrorism to enable them to have access to information and justice and a degree of closure. At the same time, we must not compromise the ability of the security forces to protect the community in Northern Ireland and prevent further victims from being created in future.

On the national security issue, no democratic party should give cover to Sinn Féin on this issue, because we know that what their game is. It is about rewriting the history of the troubles. The reality is that 90% of all the killings that occurred in the troubles were carried out by paramilitary organisations. However, if we look at the media coverage, read the newspapers and look at the amount of money spent on investigations and inquests, proportionately far more of that resource goes on the 10% of deaths attributed to the state. Many of those deaths were the result of the security forces killing people who were engaged in acts of terrorism, but far more emphasis is put on those deaths than on the 90% of innocent victims murdered by paramilitary organisations.

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[Ms Margaret Ritchie (South Down) (SDLP)]

I am delighted to participate in this Second Reading debate. I offer my condolences to the hon. Member for Tewkesbury (Mr Robertson) following the bereavement of his staff member. I also offer my condolences to my hon. Friend the Member for Foyle (Mark Durkan) following his family’s bereavement last night.

In its generality, the Bill deals with trying to eradicate paramilitarism. Like my hon. Friend the Member for Belfast South (Dr McDonnell), I want to emphasise not only my party’s consistent support for political and economic stability throughout Northern Ireland and the island of Ireland, but, above all, our unequivocal opposition to all forms of paramilitarism, whether it comes from republican or loyalist paramilitaries. Paramilitarism, and what it fed and spawned, created not only instability but fear. It was like a cancer running throughout our society.

There were also other issues. The right hon. Member for Lagan Valley (Mr Donaldson) referred to the murder of six innocent men in Loughinisland on 18 June 1994. That is a night I will never forget, because two people who were murdered that night were directly related to relatives of mine—one was an uncle and another was a cousin. In that respect, therefore, I know the character of those people, and their only political act on any occasion was to register their vote. Never by word or deed did they undertake any form of paramilitary activity, but they died at the butt of a gun, and their bodies were strewn over a pub.

I would therefore say to the Secretary of State that her comments on 11 February were in some ways unfair, because at the moment the independent police ombudsman is undertaking, and near the completion of, another inquiry into what happened in Loughinisland on that night and why it happened. Were there elements of collusion between the then RUC and those who perpetrated those awful crimes on that night, robbing the community that I represent and, above all, that I live in of six good people and irrevocably changing our community, not because what happened moved people towards violence in any form, but because it left them in a state of fear, in a community that had never known any form of violence before? I urge the Secretary of State in that respect to be particularly careful, because her words on 11 February could be construed as trying to obfuscate that inquiry by the police ombudsman, which is near completion. That is the second inquiry, because the previous ombudsman’s inquiry was inconclusive and, in many ways, could be perceived as being deliberately inconclusive.

[Lady Hermon]

I am listening carefully to the hon. Lady’s comments, and I have huge regard for her. I would just like her to put on record this evening her gratitude to the RUC, which stood between the whole community of Northern Ireland and absolute mayhem through more than 30 years of appalling violence. Three hundred and two RUC officers paid the ultimate price with their lives. I am sure she would like to put on record her gratitude for the sacrifice and courage of the RUC through the awful years of the troubles.

[Ms Ritchie]

I thank the hon. Lady for that intervention. We were always opposed to the murder of members of the security forces, whether those security forces were the RUC, the UDR or the Army. We saw what that did to those people and to their families. That murder and that paramilitarism against members of the security forces was totally unacceptable; we condemned it at the time, and we will always condemn it—we are very clear about that. Let me move on to other issues.

There is a clear need to ensure that economic stability is embedded in Northern Ireland, as my hon. Friend the Member for Gedling (Vernon Coaker) said when he referred to issues to do with corporation tax and the loss of jobs last week at Bombardier in the constituency of the hon. Member for Belfast East (Gavin Robinson), and other job losses. The most important thing is to ensure that existing economic stability in Northern Ireland is protected. What better way to do that, I say again, than through continued membership of the European Union, because we have a ready export market in the south of Ireland and are also able to trade with the wider Common Market? I ask the Secretary of State to reflect on her position in that respect.

Moving on to elements of the Bill, clause 1(4) deals with the independent reporting commission, to which the First Minister and Deputy First Minister can nominate two persons. I suggest that there would need to be a legislative input for the Justice Department, despite the character of the independent reporting commission. It could be argued that any Northern Ireland nominations should be made by the Executive as a collective body, or chosen from proposals made by parties. The issues that fall to the independent reporting commission brought the parties together in September last year, because they refer directly to the murders of Gerard Davison in the first week in May last year and of Kevin McGuigan in August. Both people resided in the constituency of my hon. Friend the Member for Belfast South.

During the negotiations—I am sure that the Secretary of State and the Minister will recall this—we in the SDLP circulated papers to the three Governments and all parties on a whole-enforcement approach and a whole-community approach on how to address the issues of paramilitarism. Despite fresh start being designed and managed to be a two-party deal, there should have been all-party work on IRC membership. How can the work and the mandate of the IRC, which includes Dublin representatives, be reconciled with Sinn Féin’s approach to Tom Murphy from South Armagh? I would like to press the Secretary of State on precisely how much new moneys are to be made available to the National Crime Agency and the PSNI, when those moneys will be released, and how they will be split between the National Crime Agency and the PSNI.

Clause 2(3)(a) deals with national security, which was referred to by the right hon. Member for Lagan Valley. Paramilitarism and criminality are therefore to be addressed, but unfortunately the British Government can invoke national security, and that allows for the protection of agents who have information, thereby impeding work on the resolution of many cases.

Clause 6(1) deals with institutional reform. Yes, 14 days before the appointment of Ministers is okay, but fresh start refers to a proposal that parties have to agree to go into the Executive before the programme for government is finally agreed. Have the Government contemplated any amendment to this proposition? The pledge of office for Ministers states that they must

“support the rule of law unequivocally in word and deed and…support all efforts to uphold it.”

How can this be reconciled with Sinn Féin’s view on the National Crime Agency? The NCA is a vehicle for the rule of law, yet in February 2015 Sinn Féin opposed a motion in the Assembly that proposed support in word and deed, and refused to endorse it at a recent meeting of the Policing Board. How does the new pledge address Sinn Féin’s approach to Mr Murphy? The same applies to the pledge of office for Assembly Members.

In the Stormont House talks, and in our submissions to those talks, we have made the point time and again that capricious or divided political messages on paramilitarism exacerbate the challenges facing people trying to move community transitions and graduations away from ingrained paramilitary interests. A genuinely united political stance from all parties in the Assembly is imperative if we are to enable statutory agencies and community groups to challenge ongoing paramilitary activity, which should be condemned outright from whatever quarter it comes. For that reason, the ministerial pledge of office and the undertaking by Assembly Members are welcome, but further clarification is required.

One element of the pledge, in particular, requires further scrutiny: the reference in the pledge of office and the undertaking by MLAs to their duty

“to support those who are determined to make the transition away from paramilitarism”.

Will the Secretary of State or the Minister provide some clarification on that? Rooting out paramilitarism is not an overnight process, and scope has to be allowed for transition, but that cannot apply to illegal or untoward activity by paramilitary groups, or manifest itself as respect or tolerance for different classes of paramilitary behaviour. As MPs representing Northern Ireland constituencies, we have seen many examples of paramilitary activity.

As I said in my intervention on the Secretary of State, I regret the fact that there has been no legislative addressing of the legacy issues that need to be dealt with—the victims and the past. I urge that such legislation be introduced and that, as my hon. Friend the Member for Foyle said, it is subjected to detailed scrutiny by this House, because we owe that to all the victims and all those who have suffered so terribly as a result of such heinous violence that was never asked for and never called for.

In the outworkings of all these agreements, we must try to achieve political and economic stability, because that is what we all strive for and all want to see. For the betterment of all our constituents and all the citizens of Northern Ireland, we must ensure that social justice is provided for and that inequalities that have been inherent across the community for some years are totally addressed. We must also ensure that we see the sustaining of existing jobs and the provision of new jobs through the building up of small and medium-sized enterprises, but also jobs through foreign direct investment. I ask the Secretary of State and the Minister to work with the Northern Ireland Executive to ensure that this comes about.

--- Later in debate ---

[Mark Durkan]

My colleagues have signed a petition of concern against a current proposal. [Interruption.] It is a matter of trying to protect existing laws and not change them rashly before an election. The DUP has cited that in relation to other matters. It is about defending the existing equality provisions. What happens with a petition of concern should be what was decided under the Good Friday agreement. Rather than that being the end of the matter, it should be the subject of an investigation by a specially appointed committee to see what issues of rights and equality are involved, to test those issues and to allow the matter to proceed. That is how it should have been, as per the agreement. That has been our consistent position on how petitions of concern should properly be dealt with; they should not be abused as they have been.

I turn to the pledge of office by Ministers and the undertaking by Members of the Assembly. The commitment is confined to Ministers and Members of the Assembly, and does not extend to other party politicians. In addition, the pledge of office requires Ministers

“to work collectively with the other members of the Executive Committee to achieve a society free of paramilitarism”.

I would hope that the Ministers’ commitment would extend much further than simply to working with their ministerial colleagues. Similarly, the commitment of Assembly Members should extend further than just to working with their Assembly colleagues.

There is also the question of what some of the terms mean. The hon. Member for Gedling (Vernon Coaker) was right to point out the final sub-pledge in the pledge of office by Ministers and the undertaking by Assembly Members, which is

“to accept no authority, direction or control on my political activities other than my democratic mandate alongside my own personal and party judgment”.

In the same pledge of office, Ministers pledge to be bound by decisions of the Assembly and the Executive Committee. The final sub-pledge appears to contradict that, so there is potential tension there. In addition, if we fill the gap that the hon. Member for North Down mentioned by creating clear standards and sanctions, people will have to accept some trammelling of their political conduct, because they will be listening to others as to what the due standards of behaviour and engagement should be. I think that there is a problem, which the hon. Member for Gedling was right to identify.

I want to take up the point that my hon. Friend the Member for South Down mentioned about the second to last of the sub-pledges, which is

“to support those who are determined to make the transition away from paramilitarism”.

That might seem to be fair enough as a general statement of support, but what does it mean in practice? Are there potential tensions between that and other parts of the pledge, such as the commitment

“to challenge paramilitary attempts to control communities”

and

“to challenge all paramilitary activity and associated criminality”?

The right hon. Member for Lagan Valley (Mr Donaldson) earlier questioned whether some of the former paramilitary personalities who have talked a lot about their positive contribution to the peace process have been more laggardly in relation to certain standards and practices, and whether they have turned a blind eye to certain things.

The question therefore arises of whether or not, when we criticise or challenge such people, we will be accused of not supporting those who are determined to make the transition away from paramilitarism. Many people use as a justification for their demands for funding for particular schemes—jobs for the boys, set-ups and all the rest of those things—that they are all about weaning people away from paramilitarism. Other people in the community sometimes challenge that by questioning why they were not interviewed for posts that had become available in community organisations or whatever, while other people were interviewed. We need to look at such issues.

We should remember the very glaring example involving my hon. Friend the Member for South Down. When she was a Minister, she decided to cease her Department’s funding of the conflict transformation initiative because the Chief Constable and other senior police officers made it very clear that those in the Ulster Defence Association, which was essentially funded and supported by the conflict transformation initiative, were up to their necks in a series of high-profile crimes. The Chief Constable made that clear, and high-profile criminal activity was taking place at the time. My hon. Friend brought that to the Executive, which told her she had to decide because it was a matter for her Department. However, when she made her decision, they changed their ideas. Members of other parties said, “Oh, no. The conflict transformation initiative is supporting people who are trying to make the transition away from paramilitarism,” while as far as others were concerned, the money was going to support and indulge people who were up to their necks in crime at that time. Which was it?

There are potential tensions in how any of us might interpret the pledge and the undertaking in clauses 7 and 8. We could take them in very different directions, so work is needed to refine them and define them better. We must also ensure that somebody else can arbitrate, because otherwise there will be a lot of arguments between the parties on such issues. The one thing we do not want is for parties to end up arguing with each other about who opposes aspects of paramilitarism either now or historically. The more united and coherent the parties can be seen to be, the better.

We want to make sure that that applies at all levels to resolve many of the existing issues. If there are controversies about party politicians turning up at particular events or protests that paramilitaries are also attending, we need to be able to deal with such issues. We must ensure that the pledge governs what happens when there are other controversies, such as the naming of the play park that has often been mentioned in this Chamber. It should be clear that we have an absolutely coherent pledge relating to paramilitary practices, either historical or current, and that we all have the same yardstick. That would provide protection for all individual politicians put under pressure at community level to get involved in this, that or the other, or to lend their presence to an event. A proper, articulate and robust pledge could give us a lot in that respect.

There are other issues about the Bill that I want to mention, before I touch on what is not in it. As hon. Members have said, the First Minister and the Deputy First Minister will appoint members of the independent reporting commission. In the fresh start agreement the reference was to the Executive, but the Bill makes it clear and explicit that the power lies with the First Minister and the Deputy First Minister. I share the view of other hon. Members that that needs to be the subject of wider consideration and consultation. There are also issues to consider about the Secretary of State’s powers in respect of the commission. The fact that the Secretary of State will be in charge of defining and possibly changing many interpretations means that more work and consideration is needed.

I want to make a few points about clause 9, which is about draft budgets. The Government say they have included the clause because they want to ensure greater transparency and sustainability in relation to the budget. I am all for transparency in budgets, as I was when I had the job of the Minister of Finance and Personnel. In various talks, the Social Democratic and Labour party has advocated going much further on budget transparency. As well as designing the whole procedure for a fairly transparent process of draft budgets that are fully considered in the Assembly, open to public consultation and then subject to the revised budget procedure, we have advocated in various talks, going right back to Leeds castle, the idea that after the revised budget is approved by the Assembly, each departmental Minister should, within a number of weeks, make a statement about their own spending plan and be fully answerable to the Assembly on how they will deliver it. We thought that that would add to the transparency, but it was not to the taste of many of the parties that were talking a lot about transparency. I remember Peter Robinson telling me, “We don’t want that much transparency—that would be just too much.” I think there should be transparency in how the Assembly follows up on budgets.

Under clause 9, a statement will be laid before the Assembly about the amount of UK funding to be allocated. Will the Secretary of State consider accepting an amendment to take that further by saying that the statement should specify exactly how the Northern Ireland Barnett allocation was calculated? That would allow people in the Assembly, and Members here, to see exactly how the spending amount for Northern Ireland had been determined on the basis of spending commitments here and, possibly, on the basis of legislation and legislative requirements that had gone through this place. We would be able to see whether the two correlated.

A key argument that the Scottish National party and my party made in relation to English votes for English laws was that England-only or England and Wales-only legislation that goes through this place will inform the spending plans for England or England and Wales, and will, in turn, be factored into the Barnett formula. Therefore, let us have transparency. The Government tried to tell us that no legislation has those sorts of spending consequences. That is funny, because the same Government usually say, when they reject amendments to Bills, that they are doing so because there would be budgetary consequences. So they will not take amendments to legislation because there would be budgetary consequences, but with English votes for English laws they pretend that legislation does not have budgetary consequences.

The Government might be right, or we might be right. The way to prove who is right and to establish the facts in the future is to take the transparency provision a bit further. It should not be hard to colour in the budget statement a bit more. Rather than being just a brief outline statement, it should be well coloured in, whether in respect of the draft budget or the subsequent statement that comes with the revised budget. If people want transparency, that would be a good addition to the Bill.

There is a question over whether one intention behind the statement is that it can be used, in effect, as a budget cap. The Government say that it is about transparency and sustainability. However, when the Corporation Tax (Northern Ireland) Bill was debated, the Financial Secretary to the Treasury said that the switch-on power would be activated only when the Treasury was satisfied that there was a balanced and sustainable budget. Some of us asked in the Bill Committee whether the Treasury would use that power to make a judgment on the spending plans of the Executive in relation to other matters, such as student finance, water charges or prescription charges. After all, the Treasury was using the Assembly’s failure to pass the welfare reform legislation to make the judgment that there was not a balanced and sustainable budget. The Financial Secretary said, “We will judge a budget on the sum of its parts.” He did not rule out the Government using the power to involve themselves in those other matters.

One reason why I welcome the provisions of clause 9 on draft budgets is that they settle a point that arose after the Assembly budget in 2008, when Peter Robinson was the Minister for Finance and Personnel. We tried to amend that budget and the programme for government, and we voted against aspects of it. A few months later, Peter Robinson announced that because the budget had contained indicative figures for 2009 and 2010, draft budgets did not need to be tabled before the Assembly in the subsequent years. The procedures that were laid down in the 1998 Act were clearly predicated on an annual financial exercise, but he said that he had received legal advice that the requirement for that exercise before each financial year had been discharged by covering the figures for all three years in the 2008 budget.

We challenged that at the time and took it to the Speaker of the Assembly. Unfortunately, he did not rule but said it was up to us to make a legal challenge. The flaky advice given by Peter Robinson was followed by that of his successor as Minister of Finance and Personnel, the right hon. Member for Belfast North (Mr Dodds), who said that the draft budget exercise was not needed. Clause 9 is clear that it will be an annual exercise. There is absolutely no ambiguity or doubt in how it is framed: it is an annual exercise. A draft budget has to be tabled and debated fully every year, with an additional statement made ahead of it. We are glad that that is set out in the Bill. It may restore the Assembly’s role in transparency, which needs to be amplified. The Assembly should be doing much more scrutiny of budgets and spending; that should not just be left to bodies outside the Assembly.

Members have raised issues not covered in the Bill, and the Secretary of State, in her opening remarks, addressed issues relating to legacy. Like my colleagues, I regret that, rather than our ending up with an all-party agreement, welfare reform was agreed by the three amigos of Sinn Féin, the Tories and the DUP—the austerity alliance. This Bill is now being brought forward, and we await the legacy legislation. It is important that it is not rushed. It is also important that we give some issues full consideration again. I recognise that the Secretary of State thinks the measure of agreement apparent around the table at Stormont House was the highest degree of agreement there has been. I would make the point, however, that Eames-Bradley offered a much better prospectus for dealing with the past. So did the Haass proposals, although not as good as Eames-Bradley. They were watered down in the Stormont House agreement, and they have been watered down further in a number of respects.

Victims’ groups have their own concerns, upsets and apprehensions about some of the issues involved. I ask them, and all parties, to consider all the issues in the round, not least with respect to the potential to deal with what have now been called “thematics”. It is hugely important that the historical investigations units is set up to undertake the work formerly done by the Historical Enquiries Team and the work on the past done by the police ombudsman, but we should recognise that the HIU will be confined to looking at killings. We should also recognise that it will work, a bit like the HET, on the basis of reports being provided to the families. Those reports will then be treated as the private property of the families.

Many cases, however, are linked. There are wider patterns, themes and issues at stake, not all of which relate to killings, and many of them need to be scrutinised and given an airing. In many ways, we think that would help to answer some of the questions put by the right hon. Member for Lagan Valley. He says that there is an unbalanced approach to the past, and that those who are seeking the truth and want the past to be investigated are concentrating entirely on what the state did and not on what paramilitary actors did. The whole question of thematics and patterns in those investigations could lead to more balance, which is why we in the SDLP in particular put such emphasis on that.

I recall that in the Haass negotiations, Richard Haass himself replied to points that the right hon. Member for Lagan Valley made about a failed market in relation to the past, whereby people with the means and the motives were pursuing the aspects of the past that interested them, while others were being left aside. He argued that thematics was one way of evening the situation up and ensuring that other pictures and other concerns were looked at.

[Lady Hermon]

Before the hon. Gentleman concludes his remarks—[Hon. Members: “Hear, hear.”] Despite the noises off, I want to take this opportunity to express on behalf of my colleagues and friends how very sorry we are to hear that he has had a bereavement in his extended family. We would be most grateful if he would offer to his sister our sympathy and support at a time when her partner was tragically killed in a traffic accident last night. We are very sorry indeed that death has visited her door and the hon. Gentleman’s door at such an untimely stage of life.

[Mark Durkan]

I thank the hon. Lady for her kind condolences, which I will certainly pass on. I accept them in the spirit in which she has shared them—not just on her own behalf but on behalf of her colleagues as well. Of course, whenever we experience the shock of death like that, it comes as a throwback. I did not know what had happened when I spotted the tapes across the road and the police action that was going on; it looked like a security operation that would have been familiar to so many of us down the years. In talking to the police at the scene, I had memories of other occasions, which brought to mind once again the position that we are all talking about, from our different party stances, when we deal with the concerns of victims and survivors about the past. This is why we need to give the issue full consideration now.

When the legacy legislation comes forward, we must ensure that it is going to be fit for the needs and purposes of victims and survivors. We must listen to them, and think a little more about what they say. I hope that the sort of consensus that the Secretary of State says she wants to build will not be one in which she just tries to square things off between herself and one or two other parties. It must be done much more widely.

As my hon. Friend the Member for Belfast South (Dr McDonnell) has said, we will bring forward amendments on some of the issues that I have mentioned, in an attempt to proof and improve the Bill. We are obviously not opposed to its passage, because we need the changes that it makes, for instance to the timeline for the appointment of Ministers, and we need to allow a programme for government to be aired and shared before Ministers are appointed. If that is to happen in time for the mandate of the next Assembly, the Bill will have to go through. We are certainly not throwing any spanners in the works in respect of the timing, but we want to try to improve the Bill and make good some of the gaps and wrinkles in it.

Even in respect of the limited things the Bill does, we think more could have been done. Why should the First Minister and Deputy First Minister remain the singular appointments of two parties? Why not revert to the original Good Friday agreement principle of electing the First Minister and Deputy First Minister? Sinn Féin and the DUP no longer have a problem in going through the Lobbies together. They could not do so originally in 2007 when devolution was restored, which is why the whole system of appointing the First and Deputy First Minister had to be changed, but now that they can do that and now that they are happy to be an axis and be in a power pact, there is absolutely no reason why they should not. The First and Deputy First Ministers should be mandated by the Assembly. We have tried to secure such an amendment to other Bills. I do not know whether we will try it with this Bill, because we may concentrate more on the matters that are in it than those that are not.