Northern Ireland Assembly Members (Pay) Bill

Lady Hermon Excerpts

2nd reading: House of Commons & 3rd reading: House of Commons
Wednesday 21st March 2018 Commons Chamber

[Karen Bradley]

I thank my hon. Friend, the Chair of the Northern Ireland Affairs Committee, for his intervention. He is right that the Bill responds public concern, which has been raised with me and with him as Chair of the Committee, and with its members. I am sure that it has also been raised with Members of Parliament here who represent constituencies in Northern Ireland.

The Bill will grant the power to vary pay and allowances for Members of the Northern Ireland Assembly, and, as I have just said, it is clear from my conversations with the public and stakeholders that there is broad desire for action to be taken in this regard. The Assembly has not sat since 13 March 2017—its first meeting after the 2 March election—but its Members continue to be paid their full salaries.

MLAs’ salaries and allowances are rightly a devolved matter. The normal process for setting MLA pay and allowances is for the Independent Financial Review Panel—a body set up by the Assembly for this purpose—to make determinations on pay and allowances. The panel would normally do that ahead of each Assembly election to cover the newly elected Assembly, although it is also empowered to make changes to reflect extraordinary circumstances. The last panel determination was made in March 2016 before the election in May that year. As no Members have been appointed since the first panel’s term of office ended in 2016, there is at present nobody in Northern Ireland with the power to change MLA pay to reflect the current extraordinary circumstances.

From my conversations and from opinion polling, it is clear that the public want to see somebody with the power to act. That is what the Bill will leave me in a position to do. In short, it will put me in the same position as the panel ordinarily would be in, giving me, as Secretary of State, the power to set out the pay and allowances of MLAs by means of a determination.

[Lady Hermon (North Down) (Ind)]

When the Secretary of State last made a statement to the House covering this particular issue, she made it clear that she wanted the Northern Ireland parties to make “full and final representations” to her on it, but she did not clarify when the closure date was for full and final representations. Will she confirm today that that date is before the end of this month and that she will therefore be free to cut MLAs’ salaries before the end of March?

[Karen Bradley]

The hon. Lady is right that I did not set a specific date. I hope that representations will be made and will continue to be made and that the fact that we have this Bill before us will encourage people to come forward and make representations. I am also clear that the reason for introducing it this week—I will come to this later—is to ensure that the pay rise that would have gone through automatically on 1 April is stopped, and that we can then take a decision about pay. I will come to my position—what I am minded to do—but she is right that I have not made a final decision on a date.

[Lady Hermon]

I thank the Secretary of State for being so generous in taking a second intervention so quickly. Will she also confirm in the House, for the record, that all representations made from Northern Ireland political parties will be published, so that the public can see that the general consensus across the political parties is that they want to see MLAs’ salaries cut?

[Karen Bradley]

Of course I am happy to publish any representations made to me, although that might not be appropriate for some, for specific reasons, and information might need to be redacted. I cannot envisage any such reasons now, however, and I will of course ensure as much publicity and transparency as possible.

One important difference between the panel’s powers and those in the Bill is that, although the panel also makes determinations on pensions, the Bill includes an explicit protection for MLAs’ pensions so that they are not affected by any changes to MLAs’ pay.

With the panel’s 2016 determination continuing to operate, and without action by someone empowered to make a new determination, a £500 per year increase in the salaries of all MLAs will automatically apply from 1 April. That is linked to the level of inflation the previous September. The criteria for an increase was met in 2017, so the increase will apply automatically at the start of next month. I am clear that it is not appropriate for this increase to apply in the present circumstances.

In advice provided to my predecessor, my right hon. Friend the Member for Old Bexley and Sidcup (James Brokenshire), Trevor Reaney, a former Clerk of the Northern Ireland Assembly, recommended that the increase not take place. Further, the Speaker of the Northern Ireland Assembly has written to me on behalf of the Assembly Commission saying that it is its view that the rise would not be appropriate and that it would be appropriate for me to take action to stop it. If granted the power to do so by the Bill, I will introduce a short determination to do just that.

More broadly, in his December 2017 advice, Mr Reaney provided his independent assessment of what action should be taken on MLA pay and allowances in the current circumstances. As part of that advice, he also recommended stopping the £500 increase. The advice was, however, more wide ranging. He made a series of recommendations, including for a 27.5% reduction in MLAs’ salaries. That was a considered case based on his assessment, following discussions with the parties and other stakeholders, and reflected pay that took account of all the important work that many Members continued to do in the absence of an Assembly. That is, at this stage, a recommendation I am minded to follow.

As we have just discussed, I set it out last week that I wished to seek final representations from the parties before I took action. I continue to encourage those representations so that we can hear views from all sides before introducing a determination on wider changes to pay and allowances under the Bill. I cannot act to put a determination in place, however, until the Bill has been passed by both Houses and received Royal Assent. I hope that right hon. and hon. Members across the House and in the other place will support the Bill and allow me to take action on this matter.

The Bill itself makes no change to MLAs’ pay or allowances. It merely grants me the power to make a determination during this period without an Executive.

--- Later in debate ---

[Karen Bradley]

That is exactly what I am saying. As I have said, I know how hard my staff work, and I am sure that the staff of all of us in this place work incredibly hard for our constituents. The position of the staff at Stormont should not be prejudiced by what is happening with their political masters.

[Lady Hermon (North Down) (Ind)]

I have great sympathy with what the Secretary of State has said about not cutting allowances for staff. They should not be punished because the MLAs are not sitting and have not sat for 14 months. However, the Secretary of State said that she was “minded” to follow Trevor Reaney’s recommendation, delivered on 20 December 2017. Does that translate into cutting MLAs’ salaries when she is given the power to do so today? That is what the people of Northern Ireland want to know.

[Karen Bradley]

Yes, I am minded to cut the salaries of MLAs in line with the Trevor Reaney recommendation, on the basis that that is the only evidence that I have and the only advice that I have. However, I am open to recommendations and representations from others. I want to put on record my thanks to Mr Reaney for the work that he did, but if others believe that something different should be done, I shall welcome their representations.

--- Later in debate ---

[Lady Hermon (North Down) (Ind)]

It is a delight to follow the hon. Member for Belfast East (Gavin Robinson). I put on the record that I am absolutely delighted that, at long last, the Secretary of State has taken legal powers to herself, through this Bill this afternoon, to cut MLAs’ salaries. She has made it quite clear that she is not going to cut the staff allowances, with which I agree, but she must be decisive. She has been given the powers in this legislation, which will go through all its stages by the fast-track procedure, and she should not shy away from taking decisive decisions about cutting MLAs’ salaries. The fact that she has made it quite clear today that the £500 pay increase that was due to MLAs on 1 April will not go ahead is absolutely brilliant news. People in Northern Ireland will be thrilled and delighted by that, but she needs to go further.

The Secretary of State referred to the fact that there was “clear public concern”—it was such a nice phrase—about MLAs being paid their full salary since the Assembly and the Executive collapsed 14 months ago. “Clear public concern” is a very pleasant way of describing what has been mentioned to me in the clearest terms of fury by my constituents and people beyond North Down. They have expressed their rage, disgust, anger and fury about MLAs receiving their full salary. Therefore, beyond announcing today that the £500 increase will not go ahead on 1 April, the Secretary of State must not dither any longer about using the powers that she will be given and entrusted with today to cut MLAs’ salaries.

Reference has been made time and again to “hard-working MLAs.” I do not detract from that—we do have hard-working MLAs—but let us just look at that title. MLAs are Members of a legislative Assembly. They are supposed to be legislating and taking Executive decisions. They have not been doing that for 14 months.

The Assembly collapsed in January 2017. It was exceedingly good of Trevor Rainey, a very distinguished civil servant, to come out of retirement to do his independent report on salaries and allowances, reflecting the disrepute into which this issue has brought the Northern Ireland Assembly. Many people have expressed to me their view that, if this issue were not dealt with firmly, why on earth would we have a Northern Ireland Assembly? So the issue of MLAs’ salaries is corroding public confidence and public respect in the Assembly and I do not want to see that. I want to see the Assembly and the Executive restored for the betterment of all of our people in Northern Ireland. Although I do not wish to detract from those who have been described as hard-working MLAs, they are not doing the full range of functions for which they are receiving their full salary. If they are not legislating and not taking Executive decisions, they absolutely do not deserve to receive their full salaries.

[Sir Jeffrey M. Donaldson]

I would be very interested in the hon. Lady’s opinion on two key matters under consideration. First, as the abbreviation MP means Member of Parliament, does she agree that those so-called Members of Parliament who do not take their seats and involve themselves in the legislative process should not be entitled to the allowances and payments that they currently receive? Secondly, she talks about the restoration of devolution, and the DUP agrees with her that it is important for the people of Northern Ireland. Does she have a view on the Irish language Act, and does she believe that Unionists should concede to it to get the Executive functioning again?

[Lady Hermon]

Let me take the right hon. Gentleman’s very helpful points one by one. In respect of Sinn Féin, if the right hon. Gentleman, as a sort of homework, cares to look—as I am sure he does—at the written questions that I have submitted, he will see a long line of questions to the Leader of the House asking that representative money to Sinn Féin be considered by this House. In my most recent written question to the Leader of the House, I asked her which parties she had consulted regarding the thousands and thousands of pounds of representative money that is paid to Sinn Féin. I was astounded, to put it mildly, when the reply came back that the Leader of the House had apparently had no discussions with any political parties about the reduction of representative money to Sinn Féin Members, who do not take their seats in this House. I would be delighted to join in common cause with the right hon. Gentleman on this issue, so that we might, in fact, take it further because it is quite outrageous.

There are seven Sinn Féin Members of this House, who do not take their seats because of their political views. They receive representative money, which was invented—I stand to be corrected on this—in February 2006 by the then Prime Minister, and that irritates and grates on me, as an independent Member. As I am not a Member of a party, I receive no representative money, no additional Short money and no additional secretarial and administrative allowances, even though I do take my seat and represent my people from North Down. It is a bone of contention about which I feel very strongly and which I would like the House to address, so, yes, it is a good point for the right hon. Gentleman to raise.

The right hon. Gentleman also asked me to address the issue of the Irish language Act, which is deeply divisive in Northern Ireland. However, I commend his party leader, Arlene Foster, who we know has made valiant efforts in this regard. We know this because the draft document, indicating the detailed discussions that have been taking place between Sinn Féin and the leadership of the DUP, was put into the public domain by some journalists, including Eamonn Mallie. This was very encouraging.

It is a great regret to me that the Irish language Act seems to have been the issue that brought everything tumbling down. It is divisive, but given the great good will from the right hon. Gentleman’s party leader and from the leader of Sinn Féin in Northern Ireland—although I am sure that the leader of Sinn Féin for all the island will also have to be consulted and have her penny’s worth—I would like to think that the generosity and leadership that were definitely evidenced by the draft document could be evidenced again and that we could get our Assembly up and running again. The Secretary of State would then not have to worry about explaining to the hon. Member for Belfast East whether this determination will come down immediately that the Executive are restored or whether it could be reinvented if the Assembly were to crash again. I do not want to prepare for the Assembly crashing again. I want the Assembly and the Executive up and running, so that this place does not have to take back powers. I hope that that answers the questions of the right hon. Member for Lagan Valley.

[Sir Jeffrey M. Donaldson]

It does.

[Lady Hermon]

In the meantime, the Secretary of State has been bold today. I encourage her to continue in that vein and to be very bold in terms of following the excellent recommendations of Trevor Rainey, bearing in mind the disrepute into which the Assembly brings itself if MLAs continue to receive their full salary. That is not doing MLAs any good at all, despite their hard work.