Northern Ireland Budget (Anticipation and Adjustments) Bill Debate
Full Debate: Read Full DebateLady Hermon
Main Page: Lady Hermon (Independent - North Down)Department Debates - View all Lady Hermon's debates with the Northern Ireland Office
(6 years, 8 months ago)
Commons ChamberI beg to move, That the Bill be now read a Second time.
As I set out to the House in my statement last week, in order for the UK Government to uphold their commitments to govern in the interests of all parts of the community in Northern Ireland, a series of steps are now required to safeguard public services and finances. This Bill represents the first of those steps, with further legislation scheduled to follow tomorrow. I should say at the outset that I take these measures with the greatest reluctance; I have deferred action here until it was clear that it would not be possible for a restored Executive to take this legislation forward. But as we approach the end of the financial year, it is important that we proceed now to give certainty as the Northern Ireland civil service looks to continue to protect and preserve public services.
Last year, the UK Government had to step in to ask Parliament to legislate for a 2017-18 budget for Northern Ireland. Again, that was not a step we wanted to take, but it gave the Northern Ireland civil service the clear legal basis required to manage resources and perform the important work it continues to do in the absence of an Executive. The legislation we passed, the Northern Ireland Budget Act 2017, did not set out any direction for how spending decisions should be made; instead it set out in law departmental spending allocations, within which permanent secretaries could deliver on their respective responsibilities. That Act was passed in November, and since then the Northern Ireland civil service has continued to assess where pressures lie across the system and has reallocated resources, as required. In addition, the UK Government committed in November to providing £50 million of support arising from the financial annex to the confidence and supply agreement, to address immediate health and education pressures. Of that, at the request of the Northern Ireland civil service, we agreed that £20 million would be made available in 2017-18, with the remainder to form part of the resource totals available in 2018-19. That additional funding was confirmed in the Supply and Appropriation (Anticipation and Adjustments) Act 2018, which received Royal Assent last week.
As we approach the end of the financial year, those changes must now be reflected in the legal spending authority provided to the Northern Ireland administration, and that is what this Bill does. In addition, it would provide for a vote on account for the early months of next year, to give legal authority for managing day-to-day spending in the run-up to that estimates process. Right hon. and hon. Members may recall that there was no such action this year, with no budget legislation for Northern Ireland before November. This meant that the Northern Ireland civil service had to rely on section 59 of the Northern Ireland Act 1998, and section 7 of the Government Resources and Accounts Act (Northern Ireland) 2001 to issue cash and resources. Those are emergency powers, intended to be used only in the absence of more orthodox legal authority. As we take forward legislation to formalise the budget for last year, I do not consider it would be appropriate if we did not provide the usual vote on account facility to the NICS—a facility we had provided to UK Government Departments through our own spring supplementary estimates process.
To be clear, this is not a budget for the year ahead. The Bill does not seek to set out in legislation the departmental allocations I outlined in my written statement on 8 March. Those will be taken forward via a budget Bill in the summer, exactly as is the case for the United Kingdom finances as a whole. Of course, I hope that this budget Bill will be brought forward by a restored Executive. We must, however, be prepared for the potential that it will again fall to this Parliament to provide budget certainty for the NICS. Nor does the Bill seek to vote any new moneys for Northern Ireland. The totals to which it is related are either locally raised or have been subject to previous votes in Parliament, most recently in the Supply and Appropriation (Anticipation and Adjustments) Bill.
Instead, this Bill looks back to confirm spending totals for 2017-18, to ensure that the NICS has a secure legal basis for its spending in the past year. As such, it formally allocates the £20 million of confidence and supply funding already committed for 2017-18; it is not concerned with any of the £410 million set out in my budget statement, which will be a matter for the UK estimates in the summer, and for a Northern Ireland budget Bill thereafter. Taken as a whole, it therefore represents the minimum necessary intervention to secure public finances at this juncture.
I will turn briefly to the contents of the Bill, as this will largely rehearse the discussion that my predecessor, my right hon. Friend the Member for Old Bexley and Sidcup (James Brokenshire), whom I know will be with us when he has finished dealing with a piece of secondary legislation he is involved with upstairs—[Interruption.] He is here—good. This will rehearse the discussion he had when bringing the Northern Ireland Budget Act 2017 before this House. I am delighted to see him here and I know he will contribute later when he has served on the secondary legislation Committee upstairs.
In short, the Bill authorises Northern Ireland Departments and certain other bodies to incur expenditure and use resources for the financial year ending on 31 March 2018. Clause 1 authorises the issue of £16.1 billion out of the Consolidated Fund of Northern Ireland. The allocation levels for each Northern Ireland Department and the other bodies in receipt of these funds are set out in schedule 1, which also states the purposes for which these funds are to be used. Clause 2 authorises the use of resources amounting to £18 billion in the year ending 31 March 2018 by the Northern Ireland Departments and other bodies listed in clause 3(2). Clause 3 sets revised limits on the accruing resources, including both operating and non-operating accruing resources in the current financial year. These are all largely as they appeared in the 2017 Act, and the revised totals for Departments appear in schedules 1 and 2 of the Bill.
Clause 4 does not have a parallel in that Act. It sets out the power for the NICS to issue out of the Northern Ireland Consolidated Fund some £7.35 billion in cash for the forthcoming financial year. This is the vote on account provision I have already outlined. It is linked to clause 6, which does the same in terms of resources. The value is set, as is standard, at about 45% of the sums available in both regards in the previous financial year. Schedules 3 and 4 operate on the same basis, with each departmental allocation simply set at 45% of the previous year’s. Clause 5 permits some temporary borrowing powers for cash management purposes. As I have already noted, these sums relate to those which have already been voted by Parliament, together with revenue generated locally within Northern Ireland. There is no new money contained within this Bill; there is simply the explicit authority to spend in full the moneys that have already been allocated.
The Secretary of State will be well aware that under the allocation to the Executive Office, the detail in the Bill refers expressly to
“actions associated with the preparation and implementation of the Historical Institutional Abuse Inquiry Report and Findings”—
the Hart report. What exactly is going to be implemented and done? It is long overdue—what is going to happen in Northern Ireland as a result of this Bill?
The hon. Lady and I have discussed this matter in the Northern Ireland Affairs Committee and in the House. As I have said, the Bill agrees the money that has already been spent in respect of the Hart inquiry. That inquiry was set up by the Executive, so it is quite right that the Bill agrees that the money that has already been spent has been properly and lawfully spent.
On the treatment of the victims of historical abuse, the hon. Lady will know that we all want those victims to get the justice that they so rightly deserve. She will also know that the inquiry was set up by the Executive, so the recommendations should rightly be dealt with by the Executive. It is a great shame that we do not have an Executive to deal with these things, but it would be constitutionally inappropriate for this House to determine the actions that should be taken in respect of those recommendations, because this House did not set up the inquiry; it was set up by the Executive, which is the right place for the recommendations to be considered and for the decisions about those recommendations to be taken. I am well aware of the hon. Lady’s point, though, and we will continue to discuss it.
Ordinarily, the Bill would have been taken through the Assembly. As such, there are a series of adaptations in clause 7 that ensure that, once the Bill is approved by both Houses in Westminster, it will be treated as though it were an Assembly budget Act, enabling Northern Ireland public finances to continue to function, notwithstanding the absence of an Executive.
Alongside the Bill itself, I have laid before the House as a Command Paper a set of supplementary estimates for the Departments and bodies covered by the budget Bill. The estimates, which have been prepared by the Northern Ireland Department of Finance, set out the breakdown of the resource allocation in greater detail. As hon. and right hon. Members may note, the process is different from that which we might ordinarily see for estimates at Westminster, where the estimates document precedes the formal Budget legislation and is separately approved. That would also be the case at the Assembly, but as was the case in November, the Bill provides that the laying of the Command Paper takes the place of an estimates document laid and approved before the Assembly—again, to enable public finances to flow smoothly.
My hon. and gallant Friend is correct that members of the Executive would have the power to change the allocations set out in the budget and to change the decisions that have been taken. He will know that, as I set out in my statement last week, what I did was the bare minimum required to allow the NICS to continue to function and deliver public services. Of course, there are many political decisions that it would not be appropriate to take in this place because we do not have the executive power to do that. The Executive would have that power, so I urge Members of the Assembly to do what they can to come back to Stormont so that they can take Executive decision-making powers there.
I hope hon. and right hon. Members will agree that this is very much a technical step that we are taking as we approach the end of the financial year. It looks backwards rather than forwards, although it does avoid the use of emergency powers for the forthcoming financial year.
I am extremely grateful to the Secretary of State for allowing me to move on to a completely different topic: the Independent Reporting Commission. Given the sad and most regrettable rise of loyalist paramilitary activity in North Down, I am curious to know what exactly the Independent Reporting Commission, which was set up a previous very distinguished Secretary of State, the right hon. Member for Old Bexley and Sidcup (James Brokenshire), who was in the Chamber earlier but is not present at the moment, does for its money. Paramilitary activity seems to be increasing instead of decreasing, which was its remit when it was set up.
I had the privilege of meeting Mitchell Reiss when I was in the United States last week, and I think several Opposition Members may also have had the chance to meet him. I expect the Independent Reporting Commission to report its interim findings shortly. Its members will be visiting Northern Ireland shortly, at which point I expect to have a meeting with them. I am well aware of the point that the hon. Lady mentions—it was something I discussed with Mr Reiss in the United States.
I am just picking at random from one Department, and I could do the same with every other Department. When it comes to spending the money, the Secretary of State has two options, or a combination of both. It can either be made clear to civil servants that they have the power to make decisions—I do not think that that is a particularly good way of doing things—or there is a mechanism whereby decisions about the spending of the money can be made politically, and that will require intervention. Otherwise, we will find that Departments receive the money and continue to spend it as they are doing at present, without any policy development and without considering the changes that have occurred in Northern Ireland.
There are not two options, but three. The third option, and the one that we all want to see, is for the DUP to get back into talks with Sinn Féin to establish the Executive and the Assembly. What exactly is holding up the DUP getting back into those talks?
That is actually where I was getting to. Unfortunately, the decisions that we have had to date—a budget statement two weeks ago, the Northern Ireland Budget (Anticipation and Adjustments) Bill today, and a full budget Bill probably in June—are not the inevitable consequence of reluctance from the DUP to do the work that is required. The very next morning after election day last year, we were saying, “Let’s get back into Stormont, and let’s do these things.” We did not lay down any conditions, but Sinn Féin laid down conditions that fell nothing short of blackmail.
Sinn Féin made demands for things in the talks that they knew they would not have got through the Assembly. Even when it came to the Irish language, they could never have persuaded the other parties, some of which have said they are sympathetic to some movement on the Irish language, to give them the kind of Irish language Bill that they wanted. So, what did Sinn Féin do? They made the decision not to go back into the Assembly until they had been given an assurance that there will be delivered, as a price, some things that they could never have negotiated, debated, argued for or persuaded anybody to give them had they been using the Assembly mechanism. The hon. Member for North Down (Lady Hermon) continually tries to share the blame, but let me make it clear that we are having this debate today not due to any reluctance on behalf of my party; it is because we will not give in to the kind of blackmail that we have experienced from Sinn Féin.
Sinn Féin make things even more difficult, because even if someone was daft enough to give them what they wanted, they create such a toxic atmosphere in Northern Ireland that they would be pilloried for it. For example, an MP, who was elected to this House but did not attend, was seen dancing around a garage at midnight, mocking the victims of IRA terrorism—people who were taken out of a minibus on their way home and gunned down—and then they say, “We want to sit down and talk about the way forward and about respect.” When the former Finance Minister does the same, it is impossible to reach an agreement that would get us back into the Assembly.
We welcome the fact that the Secretary of State has acted, and she has not actually been tardy, because had this Bill been presented to the Assembly, it would have been presented around this time of the year anyway. Some poor Finance Minister in the Assembly would have been standing up and enduring—I used that word deliberately—a six-hour debate about what should be in the Budget, and they would have been gnashing their teeth and continually reminding the Speaker, “This is not what the debate should be about,” and MLAs would simply have ignored him or her and continued to talk about it anyway. The Minister has not been tardy with the timing. If the Bill had been brought forward earlier, we would not really have known by how much Departments would have been underspent or overspent for the year. This is as close to the end of the year as we can get. When it gets to June, the final accounts will be made available, so we will know that if changes and adjustments had been made in the last couple of weeks in the month, they can be reflected in the figures that are given.
I am grateful to the right hon. Gentleman for allowing me to intervene again. He has painted a very bleak picture, sadly, of the prospects for the restoration of a devolved Assembly and an Executive this side of the summer. That being the case, would he confirm on the record for the victims of historical institutional abuse that, should we have no Assembly and Executive by the summer, it will be in order for the Secretary of State to implement the Hart proposals through legislation here at Westminster? The victims are elderly and infirm and many are not in good health. It is intolerable that they should be kept like this, uncertain about their future and compensation.
That will be entirely a matter for the Secretary of State, but as has been pointed out regularly during the debate, one of her considerations when coming to that decision ought to be whether some of the institutions that at least turned a blind eye to the abuse should also be held culpable and have to make some contribution towards compensation. It should not fall totally on the public purse, but the Secretary of State would have to make that decision. Our view, if we were ever consulted on it, would be that yes, there is a role for the state, but there is also a role for the institutions that at least turned a blind eye to some of the terrible abuse that went on and therefore allowed so many victims to experience the terrible things that happened to them.
In conclusion, I welcome the Bill and I think Departments will welcome it, but I warn the Secretary of State that it is but a first step. It is one thing to allocate money to Departments, but it is another to ensure that Departments and the civil servants in them have the guidance, direction and authority to spend the money.
The hon. Gentleman has made a very sensible, reasonable, pragmatic point, and, as always, he has demonstrated his strong interest in Northern Ireland affairs. I know that he speaks from the heart and wants to ensure that Northern Ireland keeps moving forward, and that is our only concern. We want to make sure that nobody across the board is detrimentally affected by the lack of Ministers. Likewise, it was because of that concern to ensure that people across the board in both communities had their lives improved that we argued that the confidence and supply arrangements should include an extra £1 billion in cash resources for Northern Ireland to be spent across a range of subjects which would benefit everybody. That is in addition to the extra half a billion pounds in flexibilities in terms of previous moneys allocated.
I welcome the fact that the Secretary of State announced in recent days the budget for Northern Ireland, to include the £410 million first tranche, or substantial part, of those confidence and supply arrangements. Some in the media and elsewhere said over and over again that that money would never come to Northern Ireland and that it was a pipe dream, yet it has now been delivered. They also said it would not come in the absence of an Executive, and that too has been proved wrong, although I do not hear them saying much about it despite being very vocal previously. They also said it could not come because there was no parliamentary authority for it. Well, we are now getting parliamentary authority through this Bill for the money to be expended in this financial year and proper parliamentary authority will be given to all the rest of it, as is to be expected and is the normal process.
I always listen very carefully to what the right hon. Gentleman has to say, and he has made it clear on behalf of his party that there are no red lines. He has also made it clear that his constituents—indeed, my constituents and people right across Northern Ireland from all communities—are anxious to see their Assembly back again and Ministers taking decisions, so what exactly is holding up the DUP getting back into talks with Sinn Féin and successfully seeing the restoration of devolution in Northern Ireland, for the benefit of everybody?
I could repeat everything that my right hon. Friend the Member for East Antrim said in response to exactly the same question. [Interruption.] The hon. Lady has said, “Please don’t,” so I won’t, and if she did not understand it the first time I doubt she will understand it now if I repeat it. The fact of the matter is that we are no barrier to devolution, and neither are the Ulster Unionists, the Alliance party or the SDLP, and perhaps more pressure exerted on those who are the barrier would be more productive and sensible.
The fact of the matter is that this is a very positive move in terms of breaking the logjam and stopping the drift that has continued for too long in Northern Ireland. It sends a strong message to everyone, including the parties that have been reluctant and recalcitrant so far in terms of forming the Executive, that decisions will be taken, for the good of Northern Ireland.
The right hon. Gentleman is being exceedingly generous in giving way again. I just want to ask him to reflect for a few moments on the fact that tomorrow marks the first anniversary of the death of Martin McGuinness. Martin McGuinness sat as Deputy First Minister in a very successful period of devolved Government with the right hon. Gentleman’s then party leader, Ian Paisley senior. Sadly, they are both no longer with us, but remarkable generosity of spirit was shown by both of those gentlemen at the time. Could the DUP indicate a generosity of spirit to get back into talks without any hesitation or red lines?
The hon. Lady is right to refer to the efforts made by the previous leader in Northern Ireland of Sinn Féin and my former leader as well and to the great efforts that were made, and there have also been their successors Peter Robinson, who led the Executive for seven years, and Arlene Foster, and Martin McGuinness during that period as well. I served in the Executive under both Dr Paisley and Peter Robinson, so I am fully aware of the efforts the DUP has made to reach out across the communities and to serve with people who for many, many years attacked our communities, and indeed attacked us personally by trying to assassinate members of our party—myself and others—so that was no easy task.
Generosity of spirit is something that we have exhibited over many, many years. Despite the toxicity of the atmosphere that Sinn Féin has created, to which my right hon. Friend the Member for East Antrim alluded, we are still prepared to go into government and to work in devolved government. That shows a pretty generous spirit. There are no red lines for us because we believe in going about the people’s business and getting the Government up and running. That is what matters.
Just as an aside—although it is more than an aside—I should like to say this. The hon. Member for North Down (Lady Hermon) referred to an anniversary tomorrow, but we have already rightly referred to the anniversary today of the Warrington bombing and the anniversary yesterday of the savage murder of two Army corporals. Everybody who was alive at the time remembers seeing the footage of the two young British soldiers who stumbled into a funeral and who were almost literally torn to death. We should remember, as we hear the eulogies to Martin McGuinness, that it was the movement he led that carried out those atrocities.
We always used to mention the triumvirate of Rory, Darren and Graeme, but now there are so many good golfers in Northern Ireland that we do not want to get into naming them all, because we might offend one by leaving them out. My hon. Friend is absolutely right: we have a great golf ambassador in Rory, and there are many others.
I am sure the hon. Gentleman is coming to the line in his speech about how Rory McIlroy trained in the Holywood golf club, and put Holywood on the map as a constituent of mine. I am sure that tourists will come to see where he trained to become so successful.
We are in danger of getting stuck in the bunker, and that is not where I want to be. Come on, Mr Paisley!
May I say what a pleasure it is to be in this debate this afternoon, Mr Deputy Speaker? I thank right hon. and hon. Members across the House for their contributions. In particular, I thank the Opposition Front Benchers for their support for these necessary steps to safeguard public finances, public services and public confidence in Northern Ireland in the continued absence of devolved government. In bringing forward the Bill, we are taking an administrative but hugely important step to formalise spending totals for the previous year. Given the largely technical nature of what is proposed, I intend to be brief while also responding to some detailed points that have been raised.
In his opening remarks, the hon. Member for Pontypridd (Owen Smith) made several points, many of which my right hon. Friend the Secretary of State responded to. There has been some confusion about the purpose of the Bill, and I hope the hon. Gentleman takes comfort from the fact, and will appreciate, that the issue of victims’ pensions is one for a devolved Assembly.
My hon. Friend the Member for South West Wiltshire (Dr Murrison) raised a number of points. Although the Secretary of State will reply to him in detail regarding the specific questions he raised, I just say that as far as schedule 3 is concerned, this is cash to be drawn down from the Consolidated Fund to pay for revenue and capital investment, while schedule 4 is for the use of resources only. It excludes capital but it includes non-cash items, such as depreciation costs.
We covered the Hart inquiry extensively. Other Members spoke about that as well, but my hon. Friend the Member for South West Wiltshire will appreciate that no recommendations were made by the devolved Assembly before it collapsed. That was something that my right hon. Friend the Member for Old Bexley and Sidcup (James Brokenshire), the former Secretary of State, was able to confirm.
My hon. Friend the Member for South West Wiltshire also spoke about the costs of the border to the Northern Ireland Administration. I emphasise that this budget Bill deals with the 2017-18 budget. Detailed spending decisions, including any allocations required for Brexit costs, remain for the Northern Ireland Administration to take. The Secretary of State’s written ministerial statement from 8 March on the budget set out departmental allocations for the years 2018-19 only. The decisions that underpin those are for the Northern Ireland civil service in the absence of an Executive.
May I clarify one particular point? In response to a question following last week’s statement, the Secretary of State said she would write to the “permanent secretaries”. In actual fact, she meant the “permanent secretary”, and she is more than happy to provide a copy of the letter to my hon. Friend. I hope that that has clarified the issue.
The Minister will undoubtedly be aware that last week—I am sure it was last week—the head of the Northern Ireland civil service, David Sterling, gave evidence under oath to the renewable heat incentive inquiry. He explained—I have no reason to doubt what he said—that in the past some Ministers had instructed officials and civil servants not to take minutes of meetings and decisions about expenditure to avoid freedom of information requests. Since permanent secretaries are now to be given budgets and to be making decisions about expenditure, will the Minister confirm for our benefit and that of the people of Northern Ireland that that policy is no longer in place and that permanent secretaries are indeed keeping minutes of all meetings and decisions relating to the budget?
With the greatest of respect to the Minister, for whom I have enormous regard, this has nothing to do with the RHI inquiry. I am not asking about the inquiry, which is ongoing, as he rightly says; this is a separate issue. In evidence to the inquiry, the head of the civil service in Northern Ireland, David Sterling, confirmed that Ministers—I understood him to mean Sinn Féin and DUP Ministers—had instructed civil servants not to keep minutes of meetings to avoid freedom of information requests. [Interruption.] I am pleased to see that there is some head shaking from DUP Members. Will the Minister confirm that all permanent secretaries, who are now running Northern Ireland Departments, have instructed civil servants to keep minutes of all meetings and decisions recorded afterwards?
I hope that the hon. Lady will appreciate that there are no Ministers in the Northern Ireland Assembly. It would be for them to give instructions to permanent secretaries, not Ministers in Westminster, so I cannot give her the assurance she seeks. It is a devolved matter.
I am grateful for the support of the hon. Member for Edinburgh North and Leith (Deidre Brock). She spoke of the delay in the Bill coming forward. I hope that she will appreciate that we were very keen to get the devolved Assembly up and running again—only recently there were intensive talks to try and progress matters—and that we therefore left this to the last minute. We had hoped not to have to take the decisions we are taking today.
My hon. Friend the Member for Lewes (Maria Caulfield) raised several issues. The Secretary of State’s budget statement on 8 March gives financial clarity to Northern Ireland Departments and reflects the feedback from the Northern Ireland civil service budget consultation and advice from the Northern Ireland civil service on where key pressures lay, such as health and education. It is a balanced budget that provides a secure basis for protecting and preserving public services.
My hon. Friend also mentioned city deals. She will be aware that work is ongoing on these deals. Councils, the Northern Ireland civil service, the Northern Ireland Office, the Ministry of Housing, Communities and Local Government and Her Majesty’s Treasury are all involved in charting the way forward, but she and the House will appreciate that we need the devolved Assembly, because it has a huge contribution to make to progressing those city deals.
My hon. Friend referred to the apprenticeship levy. The Northern Ireland Administration have been allocated their share of the apprenticeship levy, so it is available to the Northern Ireland civil service for allocating. In line with the devolution settlement, however, it is not for the UK Government to dictate how Northern Ireland’s share is spent. Apprenticeships are a devolved matter. That is another issue that highlights the need for a devolved Assembly to be up and running.
The right hon. Member for East Antrim (Sammy Wilson) spoke in his customary manner and with his customary passion. It was good that he helped to clarify the purpose of the Bill, given that there has been some misunderstanding among Members. The right hon. Member for Belfast North (Nigel Dodds) also made a passionate speech, which he normally delivers. He spoke of the way forward for the devolved Assembly from his own perspective, but also recognised the need for crucial decisions to be made, as, indeed, we are making them today.
The hon. Member for Belfast South (Emma Little Pengelly) spoke of her personal experience, and it was certainly beneficial to the House to hear that. She, too, spoke of the need for decisions to be made and gave the example of the special needs sector in education. The hon. Member for South Antrim (Paul Girvan), again, spoke of the lack of decisions, giving examples relating to education and health. He also highlighted the additional funds from the confidence and supply agreement, and it is important to remember that those will benefit all the people of Northern Ireland. The hon. Member for Strangford (Jim Shannon) reinforced the need for decisions to be made.
The hon. Member for North Antrim (Ian Paisley) asked two specific questions, about golf tourism and the youth Commonwealth games. I appreciate the vital importance of golf tourism to the economy, as, I think, does the House, but I am going to give him the answer that he does not want: that, along with the youth Commonwealth games, is a matter for the devolved Assembly, which is another reason why it is so important to try to get the Assembly up and running.