Northern Ireland Budget Bill

Lady Hermon Excerpts

2nd reading: House of Commons
Wednesday 30th October 2019 Commons Chamber

[Julian Smith]

The right hon. Gentleman makes an important point. However, I go back to the fact that it is, I think we all agree, in Northern Ireland’s best interests that the Executive are reformed and the Assembly gets back up and running. Any idea that it is a better solution to take powers here at Westminster is false, and we have to focus on that.

[Lady Hermon (North Down) (Ind)]

rose—

[Julian Smith]

I am going to make some progress.

I would like to pay tribute to the Northern Ireland civil service. It has the most dedicated civil servants who are continuing to deliver public services in the absence of political leadership and political decision making. Hon. Members from across the House have approached me today raising legitimate concerns about the future of public services. While today’s debate is not the place to tackle these issues—this Bill simply makes the necessary authorisations for expenditure for this year—those Members are right that they need to continue to be monitored carefully, and that is what we will be doing. However, we are up against a lack of a local decision making.

[Lady Hermon]

rose—

[Julian Smith]

Could I continue to make a little progress?

There are some significant challenges to reflect on, such as housing associations and welfare reform, but there are opportunities, too. The £163 million growth deal announcement to Northern Ireland shows what can be achieved when politicians of all backgrounds, local businesses and community leaders come together to shape the economic future for their local area and for Northern Ireland as a whole. That is why we want to see these issues taken forward by a restored Executive.

To my frustration, however, it is necessary once again for Westminster to intervene to provide the necessary authorisations for expenditure in Northern Ireland in the continuing absence of an Executive and of a functioning Assembly. The finances of Northern Ireland Departments are in a critical state. The legal authority for the Northern Ireland civil service to spend is currently capped at approximately 70% of the opening position of the previous financial year’s budget—a spending cap that was approved by this House in March 2019. The Northern Ireland Audit Office and the public services ombudsman have already reached their cash limits, and the Department of Finance has been forced to issue two Departments with contingency funding. This temporary financial measure can be used on a very short-term basis to manage the smaller Departments running out of cash, but it is just not tenable for a significant number of Departments.

--- Later in debate ---

[Lady Hermon]

I am grateful to the Secretary of State for allowing me to intervene. He reminded the House in his opening remarks that we have not had a functioning Assembly for almost three years. I am astonished and disappointed—and I am sure that the vast majority of the public in Northern Ireland will be extremely annoyed—that the Bill mentions the remuneration of MLAs yet again. I had a horrible feeling when the Secretary of State mentioned a review, when I challenged him about the continuation of MLAs’ salaries in Northern Ireland questions today. We have had a review. We had a review two years ago by Mr Reaney, who reported in December 2017. Two years on, we do not need more long grass dressed up and disguised as a review. Why does the Secretary of State hesitate in getting on and doing the right thing by the people of Northern Ireland, by cutting MLAs’ salaries? It is so obvious that he should be doing that.

[Julian Smith]

The hon. Lady raised that issue with me earlier today. I spoke to her three days ago about this review. I am on it, but as I said, I want to ensure that I balance the need to ensure that public expenditure is reduced with the fact that I want the Assembly up and running. I am not going to stand here and accept the premise that this Assembly and Executive cannot get up and running.