Stormont House Agreement

Laurence Robertson Excerpts

Wednesday 7th January 2015 Commons Chamber

[Mrs Villiers]

I thank the hon. Gentleman for his expression of support for much of what is in the agreement, and for his kind comments about the work in which I and Minister Flanagan took part. As ever, I refute his allegation of a period of disengagement. At no stage have this Government been disengaged from Northern Ireland. We have actively worked throughout our time in office, not least in agreeing an economic pact that saw us working more closely with the devolved Executive in Northern Ireland than ever before, in addition to bringing the world’s media to Northern Ireland for the tremendously successful G8 conference.

I welcome the hon. Gentleman’s comments about progress on budget matters. Those on both Front Benches are united on the point that there will be no blank cheques, and the Government have put forward a significant and important financial package, reflecting Northern Ireland’s specific circumstances. I was disappointed to hear his comments on corporation tax devolution, because I think that change could have a significantly transformative effect on Northern Ireland’s economy. Northern Ireland is in a unique position in the United Kingdom, because it shares a land border with a jurisdiction that has a much lower rate of corporation tax. I urge the hon. Gentleman to urge the shadow Chancellor to allow Labour to support that change, which I believe is good for Northern Ireland.

The hon. Gentleman asked about the implications for the block grant. The Azores criteria mean that any future reduction in corporation tax in Northern Ireland needs to be funded from the block grant. Various estimates have been made of what that might look like, but at this stage it is impossible to be certain, not least because no final decision has been made on what the rate would be reduced to.

On the criteria for calculating welfare shortfall payments, the £114 million due in financial year 2015-16 is dependent on progress on implementing welfare reform. The quicker welfare reform is introduced and is up and running, the lower the shortfall payment will be. The time scale on the past is a key point, and the Government are keen to start working with the Northern Ireland Executive on the work needed for those institutions. They will certainly need Assembly legislation and in all likelihood they will also need Westminster legislation, and we are getting on with those matters.

The agreement sets out provision for a commission on flags to be established by June, and it is important that we press ahead with that. There is clearly more work to be done on that issue and on parades, and the agreement provides for further work by the Office of the Legislative Counsel of the Executive, bringing forth options that can then be consulted on for reform of the parading system. The process for monitoring will start with its first meeting between the Executive and the Government by the end of January. The final paragraphs of the main part of the agreement set out a system for monitoring implementation, and that will be taken seriously by the Government. It will, of course, involve the Irish Government, where appropriate and consistent with a three-stranded approach, and we look forward to getting down to work with the Executive on those matters.

[Mr Laurence Robertson (Tewkesbury) (Con)]

I thank the Secretary of State for providing an advance copy of her statement. What discussions has she had with the parties in Northern Ireland about moving the Assembly and the Executive towards becoming a more efficient decision-making body?

[Mrs Villiers]

My hon. Friend will find a section in the agreement on that. There is a commitment to draft a protocol on the use of the petition of concern, and to set out more clearly the sorts of issues on which it should be deployed. There are important changes to the way the Executive work, so that Ministers from the smaller parties can get business on to the agenda. There are proposals for reform of the MLA expenses system, and a commitment to a future reduction in the number of MLAs. I am sure that more could be done in terms of institutional change, but the agreement is a real step forward. In particular, I draw the House’s attention to the provision for an official Opposition for the first time in the history of the devolved institutions.