Devolution (Scotland Referendum)

Lord Dodds of Duncairn Excerpts

Tuesday 14th October 2014 Commons Chamber

[Mr Nigel Dodds (Belfast North) (DUP)]

I am very grateful for the opportunity to participate in this debate, which is about devolution across the United Kingdom as a result of the Scottish referendum and the proposals that have been put forward for greater powers for Scotland. It is therefore right that we hear from English Members, as well as Scots Members and representatives from Wales and Northern Ireland.

I pay tribute to all the people of Scotland, however they voted, for the tremendous example of participation in the democratic process that they gave the rest of us. The referendum debate and campaign captivated and almost became a source of wonderment to people everywhere who have been trying desperately to get people engaged in politics and civic society. It was a tremendous exercise. [Interruption.] The hon. Member for Na h-Eileanan an Iar (Mr MacNeil) might agree with me on that point, but I do not think that he will agree with my next point.

I welcome the result of the referendum and the fact that this debate is about devolution and not separation, which would undoubtedly have dominated our considerations for many years. I am glad that a discussion on the separation of Northern Ireland from the rest of the United Kingdom is not even on the horizon. The hon. Member for Glasgow South West (Mr Davidson) mentioned that Northern Ireland had a referendum many years ago, in which people voted overwhelmingly in favour of Northern Ireland’s place in the United Kingdom. Now, there is not even enough support in Northern Ireland for the holding of a referendum. There is no doubt about what the outcome of such a referendum would be. The clear decision of the people of Scotland in the referendum was widely welcomed in Northern Ireland because of our strong ties to that country.

[Mr Redwood]

Will the right hon. Gentleman tell the House whether Northern Ireland likes her current settlement or whether Northern Ireland would like more devolved powers, in line with Scotland?

[Mr Dodds]

The talks on the future of devolution in Northern Ireland are about to begin in Belfast in the coming days. One issue on the table will be greater fiscal powers, including the possible greater devolution of taxation, such as corporation tax, which the Leader of the House mentioned. Given the unique set-up in Northern Ireland—we have a mandatory coalition, and people with diametrically opposed positions are entitled to be in government—we have encountered great difficulties in making things work satisfactorily because of vetoes and so on. Northern Ireland is unique in that sense. We need to have those discussions in Belfast. I am glad that the Leader of the House indicated that he is prepared to table proposals for change if there is agreement in those talks.

[Lady Hermon]

I am grateful to the right hon. Gentleman for taking a second intervention so soon after he took the first. Is it his understanding and that of his colleagues that the corporation tax decision hinted at by the Leader of the House—it will be announced in the autumn statement—is a stand-alone one, or will it be dependent on agreement on the devolution of other matters, and the agreement of the parties on such controversial issues as parading, flags and dealing with the past?

[Mr Dodds]

I will come to corporation tax later, but my understanding is that the decision is not dependent on the outcome of the talks. It has been the subject of much discussion in the House over many years, so the hon. Lady need not worry on that account.

If devolution is to be discussed in the context of greater devolution to the nation states and regions of the UK, it is important that no region or constituent part of the UK is left out. The parties in Northern Ireland cannot be excluded from devolution discussions. Giving powers to Scotland and Wales, and potentially to English regions, will affect Northern Ireland and how we govern within the UK.

The debate on the consequences of devolution for the House is by no means new. It has already been mentioned that in 1886, during the debate on Home Rule, it was first suggested that Irish MPs be accorded a different and lesser status within the House. Eventually, a so-called in-and-out solution for Irish MPs was rejected, although by means of a compromise, the number of Northern Ireland MPs was eventually reduced. The arguments made in the 19th century are as valid today as they were then. The UK is a country with a shared history and culture. The four constituent parts—the nation states that make up the UK—have become intertwined and interdependent. This complex problem will not be solved merely by designating Bills as English or merely by restricting the voting rights of some Members over and above those of others.

We have a number of asymmetries in our constitution. If we were starting with a blank piece of paper, we would not end up with what we have. However, as has already been said today, the British constitution may not work in theory, but it works in practice. We have heard a number of possible solutions. As Unionists, Democratic Unionist Members will judge any proposal by a single test: does it erode the shared cohesion of the constituent parts that make up the Union?

We believe strongly that we cannot rush into change and that we need to consider the matter carefully. I have a lot of sympathy for the arguments put by the right hon. and learned Member for North East Fife (Sir Menzies Campbell) on the need to consider the matter carefully by way of a constitutional convention. We should not get into a situation in which the law of unintended consequences kicks in. Whatever the solution, as Unionists, we believe that it must not erode or damage the Union or what it has stood for over the years. The Scottish people rejected an assault on the Union. The House needs to heed the people of Scotland, proceed with care and ensure that we do not undermine the Union of the United Kingdom.

On fiscal and taxation matters, which were mentioned by the hon. Member for North Down (Lady Hermon), we have raised the issue of an over-reliance on the public sector in Northern Ireland. In the Northern Ireland Executive, we have put a lot of emphasis on the need to grow the private sector, not because the public sector is too big per se, but it is too big proportionately compared with the private sector. We have had 30 to 40 years of violence in Northern Ireland. That is one of the reasons why our private sector has suffered and we have to address that. That is why powers to devolve corporation tax are so important to us: they would give us a tool to grow the private sector. I look forward to the Chancellor’s autumn statement on 3 December. I hope he will deliver to Northern Ireland a means by which we can grow the economy and improve the living conditions for all our people.

[Several hon. Members]

rose—