Northern Ireland (Regional Rates and Energy) (No. 2) Bill

Lord Coaker Excerpts

2nd reading: House of Commons
Wednesday 6th March 2019 Commons Chamber

[Karen Bradley]

The hon. Gentleman may have more information than me. All I can say is that we know the Northern Ireland civil service is looking at that and we will act appropriately at the appropriate time.

The measures in the Bill are limited yet necessary interventions in Northern Ireland. They provide the certainty and support that Northern Ireland Departments and, indeed, the wider public need and deserve for the year ahead. I will now give more detail on the measures. Clause 1 addresses the collection of the regional rate. The UK Government have set the Northern Ireland regional rate in the absence of an Executive for the past two years. The level of rate to be applied this year was set out in my budget statement to Parliament last week. As part of the wider budget package of support to Northern Ireland for the 2019-20 financial year, the UK Government have set a 3% plus inflation increase on the domestic rate and an inflation-only increase on the non-domestic rate.

[Vernon Coaker (Gedling) (Lab)]

The Secretary of State outlined the percentage rise in the regional rate. I will say something about that in my speech if I am called later, Madam Deputy Speaker, but will the Secretary of State say something to the House about how the 3% was arrived at?

[Karen Bradley]

Throughout the whole budgetary process, we have ensured that we have liaised with the main parties in Northern Ireland and politicians to make sure that we reflect both the priorities of the programme for government that was in place before the Executive collapsed and the priorities of the politicians of Northern Ireland. Clearly, an increase in the regional rate was needed to meet the budget gap. It is quite right that, as well as the Treasury providing additional money to bridge the gap in the budget, the people of Northern Ireland should make a contribution towards the public services that they receive, and 3% was an appropriate number.

--- Later in debate ---

[Vernon Coaker (Gedling) (Lab)]

It is a pleasure to follow the right hon. Member for East Antrim (Sammy Wilson), who, apart from the last couple of sentences, I thought made a really good, interesting speech.

I make these points very seriously. I agree with virtually every comment that has been made in the Chamber. It is particularly important, given the fact that the devolved Assembly has not been meeting for over two years, that we in this Parliament, without moving towards any sort of direct rule, are seen by the people of Northern Ireland to be joining others who take an interest because they represent Northern Ireland to scrutinise properly the legislation that has a massive impact on the people who live there. In that context, I will make a couple of points—first, about regional rates and more generally, about the RHI.

The majority of Members of this United Kingdom Parliament would consider it quite inadequate to be given information that makes bland statements of the sort the Secretary of State made in her introduction. That is why I intervened. She basically announced that the Government were going to increase the regional rate by 3% plus inflation. There is no explanation of how they arrived at that figure. What debate was had? I am not talking about the ability to amend the figure or take on the civil servants in Northern Ireland, but that figure was not plucked out of thin air. There have been discussions. There have been discussions—quite rightly—with representatives here, and we now hear that 10.5% or 11.5% was suggested. The vast majority of Members, given the absence of the devolved Assembly, would have been completely unaware of that.

Whatever the rights and wrongs, what is the consequence of reducing the rate to 3%? Somewhere along the line, the Northern Ireland Office, in consultation with representatives in Northern Ireland—business and so on—arrived at 3%. Was there an option to go lower? The right hon. Member for East Antrim rightly made the point that for some families even 3% plus inflation will be a significant cost. No information has been given to Parliament, yet we are set to agree the rate. I am not suggesting we should not agree it, but what reasons were given for a lower increase?

In her written ministerial statement, the Secretary of State said:

“This budget position has been constructed on the basis of a 3% (plus inflation) increase on the domestic regional rate, and 0% plus inflation on business rates. I consider that this is a necessary and important step to continue to support public services”.—[Official Report, 28 February 2019; Vol. 655, c. 24WS.]

In any other public debate, the Secretary of State or Minister would explain how they had arrived at that figure. I am not saying it is wrong; all I am saying is that I have no idea from the information I have gathered—from a few media reports and from what Northern Ireland Members have said—how it was arrived at. Since we are making this decision, in the absence of the devolved Assembly, the Government should be making more information available, while respecting the fact that we are in circumstances none of us wishes to be in.

[Paul Girvan (South Antrim) (DUP)]

The regional rate will make up roughly 46% of the overall domestic rate in household bills from April. Most local authorities have struggled to maintain below-inflation rate increases, and they will be impacted because the public will not understand that a large percentage is a regional add-on to the rates bill. They will not see that the 5.8% is a regional add-on.

[Vernon Coaker]

That is an interesting point. The hon. Gentleman has shared with the House another important piece of information that will no doubt be reported and on which it is important that Parliament reflects. Nobody is saying this is wrong or that the Government are in a state of confusion, but where is the information that would allow us to consider this in a much more measured and informed way?

I know it is unrelated to the Bill, but we were told time and again in yesterday’s debate, “It’s been agreed we should spend more on education and health and that necessarily means less on other areas”. It is stated, not argued. The House is given no information for why it is. It is just asserted. In the present circumstances, I would suggest to the Minister, the Secretary of State and the Northern Ireland Office that they consider much more carefully how they inform the House of how decisions have been arrived at. That is not to usurp the functions of the civil service in Northern Ireland or to seek to replace the devolved settlement, but if we are being asked to make decisions, we should have much more information.

I have a similar view about the business rate. The business rate increase is 0%, but plus inflation, so it is not 0% as such. Again, the right hon. Member for East Antrim outlined some of the difficulties for business. Notwithstanding the investment that is taking place in Northern Ireland and the success stories there, there are issues surrounding the business rate. Those who google or read the Northern Ireland press will be able to see some of what businesses are saying about what they perceive as the unfairness with which it operates. It is not necessarily for the House to say that it should be changed, because that is not our function, but if it is 0% plus inflation, it is certainly our function to consider it.

Why was it necessary for the right hon. Member for East Antrim, rather than the Secretary of State or the Minister, to outline some of the problems that businesses were identifying in respect of the increase? The Secretary of State, and the Minister, when he responds to the debate, should say something about this, to demonstrate to the people of Northern Ireland that we understand what is going on, and that the decisions that are being made in the present circumstances reflect that. The hon. Member for Lewes (Maria Caulfield) said something very similar, unless I misinterpreted what she said. As I have observed on numerous occasions to various Secretaries of State, we seem to be rubber-stamping things without proper scrutiny and without being given any proper information.

Let me now make some comments about the RHI scheme. No one would want us to be where we are now, but the seriousness of this is simply astonishing. As has been said by the right hon. Member for East Antrim and others—including, I think, the Chair of the Select Committee, the hon. Member for South West Wiltshire (Dr Murrison)—the House has not much alternative but to pass the Bill as it stands. According to the explanatory memorandum, 1,800 small and medium-sized businesses—about 100 per constituency, on average—will be affected if it is not passed, because no subsidy arrangements will be available to them. This is a phenomenal problem. No wonder the people in those businesses will be looking at what is happening here and, in many cases, will be in despair. As we all know, small businesses depend considerably on cash flow. Many are already struggling, and people are working hard to make ends meet. Of course some sort of scheme must be in place, but I agree very much with the Chair of the Select Committee. It does come to something when, essentially, we are approving this scheme because it is a case of “Oh my God, if we don’t, we will be in trouble.”

[Ian Paisley]

The hon. Gentleman has put his finger on a number of issues. We have been told that it is the legal opinion of the Department that that is the case, but we are not able to see or challenge that legal opinion. That is why a judicial review has been launched. It could actually be that the legal opinion that the Department is proffering is wrong, and that we could, at the end of the month, revert to the original payment scheme.

The hon. Gentleman is absolutely right. We are caught in the headlights. The threat that is being made is that if we do not do this, we will be responsible for ensuring that farmers get zero. That is not right.

[Vernon Coaker]

I cannot really add to what the hon. Gentleman has said, other than to agree with it. That sums it up. Members of the public will be looking at us—they will not be distinguishing between the Government and the Opposition—and wondering how on earth we have let it come to this. All I can say to the Minister is that, notwithstanding the fact that it looks as if we will have to pass the Bill otherwise people simply will not know what the position will be after 1 April, I think there is a great deal of merit in what the Chair of the Committee said. I think that the Minister—I hope he is listening to what I am saying—needs to take account of what has been said by every single Member on both sides of the House. They are saying even if it is necessary to pass this legislation for the reasons that we have heard—to give that certainty—notwithstanding the fact that there is a legal challenge and notwithstanding the fact that we seem to be doing this because we have no choice and we are caught in the headlights, the Government must recognise the strength of opinion about this. They must take up at the very least the very reasonable suggestion by the Chair of the Select Committee and check—particularly if there is a legal challenge, in which case they will have to—whether the statistics are right and whether the Committee can look at this. If it is found that there is an alternative to what is happening at present the Government can perhaps review the legislation.

I know what will happen in the civil service, with all due respect; it will say it is not possible. My experience of Government is that if there is a will everything is possible, and it is perfectly possible for the Secretary of State and the Minister of State—two of the most senior members of the UK Government—to take responsibility and say they are not prepared for 1,800 businesses to be treated unfairly, because by and large those people are totally innocent. In totally good faith, they took on the RHI, and they should not pay the price of a public policy failure. If that means that as a result in a couple of weeks, a month or six weeks, the Government have to review what has happened, I think that will be a price worth paying, because that will be fairness. People expect the Government to operate in a way that is fair to all.

I hope that the Minister heard what I said about information that should be made available to this Parliament on how things like a regional rate are decided, not in order to disagree, but to have greater information to understand how a decision has been arrived at. On the RHI, can the Minister reassure the House whether something can be done in a few weeks should it prove possible to do that and should it prove to be the case that the statistics were wrong?

I hope—as I know the Minister, the Secretary of State and every Member of this House does—that in the longer term, whatever that means, we can see a restoration of devolved government. I gently say to all of them that what might need to happen is, rather than just wishing it, we should try to see whether there is something new we can say or do that will hasten the restoration of devolved government in Northern Ireland.