Northern Ireland (Regional Rates and Energy) Bill

Lord Browne of Belmont Excerpts

2nd reading (Hansard): House of Lords & 3rd reading (Hansard): House of Lords & Committee: 1st sitting (Hansard): House of Lords
Tuesday 27th March 2018 Lords Chamber

[Lord Browne of Belmont (DUP)]

My Lords, I join other noble Lords in strongly supporting the three Bills before us today. I fully appreciate that their fast-tracking is unavoidable in the present circumstances, as there has been 15 months of absence from the Northern Ireland Assembly Chamber.

As regards the Northern Ireland Budget (Anticipation and Adjustments) Bill, the Government’s timely intervention has provided much-needed certainty for the Northern Ireland departments. The Secretary of State has already set the departmental spending limits and provided us with a budget statement. Last year’s expenditure will now be authorised in this technical Bill and the departments will be granted the legal authority to spend, since 45% of the budget is allocated in this Bill.

Your Lordships’ House recently agreed the Northern Ireland budget, which provided a significant boost to future resource spending on frontline health and education as well as an increase in infrastructure spending across Northern Ireland. A significant part of this spending, which will benefit both communities in Northern Ireland, was made possible by the confidence and supply arrangements agreed with the Democratic Unionist Party. I am certain that noble Lords will agree that this will provide welcome relief from pressures on the front line.

On the Northern Ireland (Regional Rates and Energy) Bill, although the increase in the regional rate is slightly above the rate of consumer price inflation, it is considerably less than the figure of 10% above inflation recommended in the options paper drawn up by the Northern Ireland Civil Service. As regards the business rate, the increase has been kept in line with inflation, and the small business rates relief scheme has been retained for the time being. Can the Minister indicate whether this scheme will be continued after the present scheme comes to an end later in the year? On the subject of the renewable heat incentive scheme, I welcome the retention of the cap on costs, which should prevent any future overspend.

Moving on to the Northern Ireland Assembly Members (Pay) Bill, I support the Secretary of State’s decision to take the power to vary MLAs’ pay and allowances. The Government are also correct to say that they will take the appropriate steps to stop the £500 MLA salary increase due in April. Again, this must be welcomed as a sensible move. I believe that the court of public opinion will be on the Government’s side here. I also welcome the decision to seek representations on this subject and to take full account of the independent report published recently.

Given the unfortunate continued absence of decision-makers at a local level, I am pleased that the Government have now acted to provide some much-needed clarity. Nevertheless, the restoration of a sustainable and fully functioning local Government for all the people of Northern Ireland must remain our focus. To the vast majority, it would be much more desirable for work to be able to continue across government with locally elected Ministers, who know what decisions will work and what decisions will not work in a local context. I would prefer that Bills such as those we are discussing today were laid before the Stormont Assembly in Belfast by a locally accountable Minister. Regrettably, instead of a sensible and balanced approach and a coherent way forward, the party that collapsed the devolved institutions 15 months ago set out a list of absolute preconditions, thereby prioritising the fulfilment of certain demands over governing in the interests of all the people.

However, the people of Northern Ireland still need key decisions to be made on education, health and public services. Although the legislation discussed today is welcome, it is vital to remember that during the past 15 months many key decisions have had to be postponed. In the absence of a functioning Assembly, will the Government be prepared to give permanent secretaries the power, or, in the last resort, to have Ministers provide guidance, direction and authority, and to make specific decisions on how the money allocated is to be spent? The current situation is not sustainable in the long term. There are examples—such as a number of decisions that will be made within the Department of Health and the Department for the Economy—that will require ministerial direction. These decisions are about allocation and prioritisation.

Since the breakdown of the Stormont talks there have been too many negative statements about the possibility of restoring devolved government in Northern Ireland. It is important that all parties return to the negotiating table as soon as possible, preferably without setting any preconditions. I am sure that the Secretary of State will spare no effort in trying to achieve this outcome, and that all noble Lords in this House will give her every possible encouragement and support in this difficult task.