Northern Ireland Budget (No. 2) Bill

Lady Hermon Excerpts

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

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

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

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

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

[Lady Hermon (North Down) (Ind)]

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

[Karen Bradley]

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

[Karen Bradley]

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

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

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

[Lady Hermon]

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

[Karen Bradley]

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

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[Tony Lloyd]

The hon. Gentleman is absolutely right. That is one of many issues that will be frozen for as long as no Executive sits.

I can tell the House of my own experience of being a part of recruiting police officers. Recruitment and training matters enormously. The confidence of the Northern Ireland public in the PSNI demands highly and thoroughly trained people coming into the service. It is in that context that the views of the Chief Constable must be taken into account. The Secretary of State must do better than simply saying that it is under consideration. We need decisions, and we need them fast.

[Lady Hermon]

The shadow Secretary of State will be aware that actions speak louder than words. He rightly acknowledges the needs of the PSNI Chief Constable, who made it clear to the Northern Ireland Affairs Committee two weeks ago this Wednesday that he needed additional police officers and resources. The hon. Gentleman has colleagues on the Committee. Did he and his party leader take action and write to the Secretary of State for Northern Ireland reflecting and supporting the needs and views of the Chief Constable in his request for additional resources? I do not want just to hear words; I want to know that the Labour party took follow-up actions.

[Tony Lloyd]

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

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

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

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[Tony Lloyd]

We need a package of action. It is incumbent on political leaders in Northern Ireland to stand up and be counted. Across the piece, politicians like the right hon. Gentleman have a leadership role in saying, “Get back to the Assembly.” There is, of course, a leadership role for the Secretary of State. I cannot rewrite history, by the way. What I would say is that we saw a move towards a successful conclusion and power sharing was reinvoked. We need movement towards the reintroduction of proper power sharing.

[Lady Hermon]

I am most grateful to the hon. Gentleman for allowing me to intervene again. When the Assembly was suspended in October 2002, under a Labour Government, the suspension provisions were on the statute book. They were repealed at the request, I understand, of Sinn Féin in the St Andrews agreement. Therefore, we are not comparing like with like. We are comparing that situation not with a period of suspension of the Assembly, but with a grey area where the Assembly is simply not functioning but is not suspended.

[Tony Lloyd]

Constitutionally, the hon. Lady is absolutely right. I am not sure, however, that we will make progress by looking to the past. We have to look to the future.

I applaud the Government’s decision to move to the British-Irish Intergovernmental Conference, which will meet in a couple of weeks’ time. It is important that it does so, and certainly my party will do everything it can to make the process work. It would be helpful to recognise a number of things. The conference is one of the institutions of the Good Friday agreement. It is part of the framework of the agreement, which has not gone away. The two Governments, the Irish Government and the British Government, are co-guarantors of the Good Friday agreement. I hope the Minister will make it clear, at a difficult time between our two nations—it is not simply a question of east-west relations, it is about ensuring progress on the north-south agenda too—that both Governments will show leadership in the expectation that it will be mirrored by leadership from the political parties in Northern Ireland.

It is time for a change. The things that are being held up cannot wait for finger pointing between political parties. The Secretary of State has to show real action in the weeks and months to come. Through the British-Irish Intergovernmental Conference, she can begin the process of bringing legitimate pressure to bear on all parties. We have to see real progress if we are to begin to deliver for the people of Northern Ireland the change and transformation that is now needed.

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[Sir Mike Penning]

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

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

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

[Lady Hermon]

I am most grateful to the right hon. Gentleman for allowing me to intervene at the end of his comments. Out of respect, including for the memory of my late husband, who was the Chief Constable of the Royal Ulster Constabulary for 10 years, I wonder if I might just ask the right hon. Gentleman to correct what he said earlier—that the Police Service of Northern Ireland took over after the RUC was abolished. The RUC was incorporated into the Police Service of Northern Ireland and many, many distinguished RUC officers still serve proudly in the PSNI.

[Sir Mike Penning]

If the hon. Lady had not asked me to correct the record, I would still have done so—I spoke inappropriately, and I apologise. I also pay tribute to her husband for the work that he did in getting us to where we are today. Sadly, he is no longer with us. I absolutely agree—I had ex-RUC officers in my own close protection when I was out there. Interestingly, I had former British soldiers who had fallen in love with Irish girls and stayed.

I just want to touch on the G8 summit at Lough Erne and the volunteers we had coming across from the mainland—from Great Britain. I remember Steve White of the Police Federation—he has left the federation now, but he is a good friend—telling me, “You will not get officers going over”. How wrong he was. Police officers from Scotland, Wales and England want to go and help their colleagues. I am still struck by what happened at the first briefing when I was there, when those green uniforms walked in and every other officer from around these great nations of ours stood up out of respect. It was not once; it happened again when I went to the Police Federation conference, simply because of the massive respect that other police forces have for the PSNI. As we know, quite a few of them get recruited out of the Province and into the other forces. Surely the sensible thing would be for them to go back and serve with the PSNI.

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[Sammy Wilson]

There are plenty of other aspects of the budget that could have been related to the concerns that Labour Members have been expressing. In that regard, Scottish National party Members are no different—they too have expressed great concerns.—and the same applies to the Liberal Democrats, who are nowhere to be seen. At least some Labour Members are present, but none of the rest has turned up.

This is not a satisfactory arrangement. I think I should use some of my speech to talk about how we got here, why we are here, and who is responsible for the fact that our budget is being dealt with in this way in the House of Commons.

[Lady Hermon]

Will the right hon. Gentleman give way?

[Sammy Wilson]

I am sure that the hon. Lady will have an opportunity to make her point later, when she makes her own speech.

This is the second occasion on which the Northern Ireland Budget has come to this House. On the first, in an act of political cowardice the then Finance Minister in the Northern Ireland Assembly, Máirtín Ó Muilleoir of Sinn Féin, refused to bring a budget to the Assembly. Sinn Féin has always liked to hold its hand out for British pounds, but it does not like to make the hard decisions that must be made when it comes to spending money in a responsible way. No budget was brought to the Northern Ireland Assembly in November 2016 when it should have been, and, shortly after that, Sinn Féin collapsed the Assembly.

That was very convenient, because Sinn Féin did not have to make the hard decisions. They wanted the post and the responsibility—they wanted all the kudos that was involved in being head of the Department of Finance— but they did not want to make the hard decisions. It was convenient that the Assembly collapsed—or that Sinn Féin collapsed the Assembly—because that meant that Sinn Féin did not have to put their hand up for a budget.

I have been in that position. When one has to allocate money across Departments, there will always be people who are disappointed, and there will always be criticism. One will be told that one should have prioritised this and should not have given money to that, or that, magically, one should have produced for everyone money that just was not there, which, of course, is not always possible.

The budget came to the House of Commons on the first occasion because of Sinn Féin’s failure to produce a budget; on this occasion, it has come here because Sinn Féin made it impossible for anyone else to produce a budget. Having collapsed the Assembly, Sinn Féin then refused to return to it, appoint Ministers, and enable the Assembly to make decisions about how money was spent and allocated and to present a budget for the people of Northern Ireland. Sinn Féin preferred to engage in a game of blackmail: they would not allow the Assembly to be set up unless all the parties in the Assembly agreed to their agenda, before they were even in the Assembly. Sinn Féin knew that that agenda would have been impossible to deliver had it come to votes in the Assembly—even some of the nationalists would not have voted for it—so what did they do? They sat outside and said, “We have a veto. Under the rules that currently govern Northern Ireland, if we are not included in the Executive that Executive cannot sit, and that Executive will not sit until we get our way and are given promises that the policies we want will be implemented.”

Oddly enough, it seems that Sinn Féin are holding up all political progress in Northern Ireland so that the 4,000 Irish speakers in Northern Ireland can see Irish road signs and can be spoken to in Irish when they telephone about their rates bills, although they can all speak English. We are being held to political ransom. We have Irish broadcasting and Irish schools, and £197 million is spent on all kinds of Irish-medium education. We spend money on Irish festivals, and we allow Irish street names if enough people in the area want them. Despite all that, one of the reasons we are discussing this budget here tonight is that because 4,000 people in Northern Ireland claim to be Irish speakers, Sinn Féin say that unless an Irish language Act makes Irish an official language—which would mean hundreds of millions of pounds of expenditure—they will not allow any progress.

The hon. Member for Paisley and Renfrewshire North (Gavin Newlands) said that he did not want to become involved in an argument about who was right and who was wrong, and who was responsible. However, if he looked at even the surface of what is happening in Northern Ireland, he would be able to point the finger of blame—and, by the way, the blame does not lie with the Government at Westminster, although I know that the favourite activity of the Scottish National party is to blame them for everything. The blame for this should not be laid at the door of the Government at Westminster; it should be laid at the door of those who know that they have a veto, who have used that veto irresponsibly, and who are quite happy for this budget to be pushed through the House of Commons today without the level of scrutiny and accountability that would have been possible in a Northern Ireland Assembly.

[Sammy Wilson]

It does not surprise me at all. Sinn Féin have introduced this hurdle because they do not want the Assembly to be up and running anyway. I shall say more about that in a moment. Sinn Féin prefer the political vacuum, for a reason. The Secretary of State must bear that in mind, as must the hon. Member for Rochdale (Tony Lloyd), who said that he hoped that this was not part of some creeping direct rule. There was a contradiction in his argument, because he then said that we were moving towards a crisis, and that there must be pressure for action. He was right.

There are decisions that need to be made, and we need a process for that. It is clear, however, that one of the parties required to set up the Northern Ireland Executive is determined not to be in that Executive. Its members prefer to sit on the Terrace of the House of Commons, lobbying Ministers and Members, rather than coming in here, and rather than doing their job in Northern Ireland as well. We see them all the time, sitting about this place collecting millions of pounds for not doing their jobs, and at the same time complaining about the outcome of the process. They have pointed the finger at the DUP, and one of the arguments they have made is that my party and those who asked the Government to implement this budget are supporting Tory austerity. However, I can say that we have probably done more to alleviate the impact of austerity in Northern Ireland than Sinn Féin or all the other parties put together, because, as my right hon. Friend the Member for Belfast North (Nigel Dodds) has pointed out, the confidence and supply arrangement that we reached with the Government was what resulted in the additional resources the Secretary of State has referred to becoming available to the Northern Ireland budget.

I know that the hon. Member for Paisley and Renfrewshire North would have liked to have had the same benefit. I thought the SNP was opposed to outsourcing, but it appears that it wants to outsource the negotiations on its budget to the DUP, saying to us, “You go and do a deal with the Government and then we will reap the benefits of it.” I think the Government may well be prepared to make the benefits of that kind of confidence and supply arrangement available to the Scottish National party if it is prepared to back the Government in the same way as we have done.

In fact, we had the situation last week when the SNP was so determined to annoy Members of this House that it called votes when we were in the Smoking Room cheering on England to get them through to the quarter-finals—they are now in the semi-finals. What were SNP Members doing? They were doing their best to disrupt our night of enjoyment. They can hardly expect a confidence and supply arrangement from anybody in this House when they behave in that way.

I accept that this is a difficult budget. In cash terms, it is a flat budget. The amount available to Government Departments in Northern Ireland is no different from that in the previous year, and that does present challenges. It presents further challenges when the allocations are based on decisions that the Assembly made nearly two and a half years ago. It set certain priorities, wanting to see over the next five years an extra £1 billion put into the health service, and of course that meant that, since the cake had to be sliced up, other Departments would find that their budgets faced cash reductions.

While this has presented challenges, those challenges have been reduced somewhat due to the additional money obtained for the reform of the health service, the additional money for frontline services in health and education, and the additional money for broadband, infrastructure projects, mental health and areas of severe deprivation. Indeed, some school budgets, or parts of school budgets, have been protected because breakfast clubs, after-school clubs and so on have been able to have money allocated to them from that severe deprivation funding.

[Lady Hermon]

I want to pick up on the points made earlier by the right hon. Gentleman’s party colleague the right hon. Member for Lagan Valley (Sir Jeffrey M. Donaldson) about schools in his constituency, because I must add to those concerns my worries about school budgets in North Down. The right hon. Gentlemen has called on the Government to boost health and education, and the Government in turn have delivered that through the confidence and supply arrangement, so how on earth can it be that budgets in North Down for primary and special care schools are so stretched? Please will the right hon. Member for East Antrim (Sammy Wilson) explain that to the principals and parents in my constituency?

[Sammy Wilson]

It comes back to the point I was making about the allocation of the budget and the way in which decisions are made. First, decisions are based on historical decisions made by the Assembly. Secondly, unfortunately, I have to say—this is why the current system is not acceptable and has to be changed—that when allocations are made by civil servants, we cannot be sure that the finance available will always go to what the public might want to prioritise, because bureaucrats see different priorities. For example, I had a long discussion with the permanent secretary in the Department of Education when we found out that some of the additional money that was available for schools and was meant to go to frontline schooling actually went to finance the deficit of the Education Authority. By the way, after the amalgamation of five education and library boards, that authority was still spending as much on administration as the five boards had spent, even though the idea was that one authority would lead to rationalisation and therefore cut costs.

When civil servants are making these decisions, they will often have different priorities, because they see things from the point of view of administration and bureaucracy, and sometimes that will be more important to them than what politicians would see as the priorities. Politicians are being confronted on a day-to-day basis by parents with youngsters with special needs, teachers who are teaching bigger classes, and headmasters who are having to say to parents, “We need you to provide extra money for books, paper and everything else.” Therefore politicians will often have different priorities.

But here is the point: in the absence of devolution, we do not have people in place who are perhaps tuned into those things as priorities. That is one of the disservices that Sinn Féin has done to the people of Northern Ireland. In its pursuit of its ideological goal involving the Irish language, it is prepared to see bad budgetary or spending decisions, or decisions that do not reflect the priorities of the public.