Northern Ireland (Regional Rates and Energy) Bill

Lord Dodds of Duncairn Excerpts

2nd reading: House of Commons & 3rd reading: House of Commons
Wednesday 21st March 2018 Commons Chamber

[Karen Bradley]

The hon. Lady is pre-empting the speech that I will make later—I hope not in six hours’ time—when I will be legislating to bring powers to this Parliament to vary the rates of MLA pay. I am doing so this week to ensure that it happens before the start of the new financial year, so that no pay increases go through. I well understand her strong feeling, which is one that has been expressed to me by many in Northern Ireland.

[Nigel Dodds (Belfast North) (DUP)]

The Secretary of State will know that the Assembly Commission, which comprises all the parties, recommended that she should take a power to ensure that the pay increase would not go ahead. That is the view of all the political parties in Northern Ireland. It is a sensible step, and we welcome what the Secretary of State is saying.

[Karen Bradley]

I thank the right hon. Gentleman. He is right that it was cross-party, cross-community view that the pay rise should not go ahead, which is why we are legislating today.

Returning to domestic rates, I well understand the concerns that people will have, but this important measure will address a hole in the budget for 2018-19, so that public services can still be delivered. In my view, the measure represents an important contribution to delivering a sustainable budget picture for 2018-19. As the budget consultation launched by the Northern Ireland civil service last year pointed out, there are important conversations to be had about the right balance in Northern Ireland between revenue raising and spending efficiencies, and that document discussed rises in regional rates of as much as 10% above inflation. Having reflected on conversations with the parties and stakeholders more broadly, and having understood the pressures on key services, I concluded that it was right that we ask households to pay a little more to help to protect and preserve public services.

However, I also considered that we had to balance that increase at the right level. That is why I propose a 3% on top of inflation rise—less than £1 a week for the average household—to help to address pressures in health, education and elsewhere. It is also why I have held business rates in line with inflation—within a broader budget envelope that allows the safeguarding of the small business rate relief—to keep a focus on the growth that Northern Ireland needs to see. That forms an important part, along with the flexibilities that we set out in last week’s budget statement, of helping Northern Ireland to live within its means at a challenging time, maintaining the UK Government’s responsibilities to uphold good governance in Northern Ireland.

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[Karen Bradley]

As I have said, the estimated saving for 2016-17 was £27 million. I assume a similar sort of saving this year. The total saving as a result of the cost capping is in the region of £450 million.

[Nigel Dodds]

The Secretary of State rightly said that this was a continuation of measures that were put in place by Simon Hamilton, the DUP Economy Minister, and which saved money last year. Will the Secretary of State confirm that the Bill replicates the excellent legislation introduced by Mr Hamilton?

[Karen Bradley]

I can confirm that that is the case. We are following the same cost capping as was put in place by the Executive and Simon Hamilton as Economy Minister. The right hon. Gentleman will know the restrictions placed on this Parliament in terms of what we can do with changes, and we are very much guided by decisions taken in the last Executive. He will also know that since then there has not been an Executive to undertake that broader consideration of the right energy policy for Northern Ireland. We are now at the point where the existing cost controls are due to expire. If that happened, there would be no legal basis, not only for maintaining the current cost cap but for paying all those who receive payments under the scheme and whose installations were accredited before November 2015. Neither of these would be acceptable outcomes, nor would it be suitable for the Northern Ireland civil service to administer payments on an extra-statutory basis, which would create unnecessary legal uncertainty for all concerned.

That is why clause 2 ensures that the present cost controls, and the legal basis for payments, can continue for the 2018-19 financial year. As with the 2017 regulations, there is a sunset provision that expires after one year. This is a devolved policy matter, and it is right that the longer-term approach is one for a restored Executive to decide. In the meantime, I am assured that the Northern Ireland civil service will undertake detailed analysis to enable a new Executive to consider the right course for the future.

In summary, this is a modest Bill doing two discrete things. In setting a regional rate and extending the cost controls of the RHI scheme, it upholds our responsibilities to ensure good governance and to safeguard public services and finances in Northern Ireland. It does so in a way that continues our approach of intervening only as necessary to meet those aims, and only at a point at which it is critical that the measures are taken forward. I hope that colleagues across the House agree that it is important we now make progress to see these measures passed into law to put Northern Ireland on its strongest financial footing for the year ahead. The UK Government shall continue to meet our responsibilities to the people of Northern Ireland. To that end, I commend the Bill to the House.

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[Stephen Pound (Ealing North) (Lab)]

I thank all right hon. and hon. Members who have used expediency as their watchword this afternoon. Would that brevity was always the order of the day here.

The Secretary of State rightly referred to “a necessary intervention”, and the points that she and the Chairman of the Northern Ireland Affairs Committee, the hon. Member for South West Wiltshire (Dr Murrison), made about the current situation being unsought by any of us and something that we have to manage were very well made.

I want to concentrate on one aspect of the Secretary of State’s contribution, which was her very welcome mention of small business rates. This was picked up by the hon. Member for South Antrim (Paul Girvan). Some of us have had the great pleasure of attending small business Saturday throughout Northern Ireland. It has taken me from Downpatrick to Coleraine, but I have to say that the high point was probably visiting Quails in Banbridge. People have said that Quails is the Fortnum & Mason of County Down, but I think that Fortnum & Mason is the Quails of Knightsbridge.

[Nigel Dodds]

The hon. Gentleman mentions Quails, which I know very well since it is not far from where I live, but just for the sake of completeness and inclusiveness, he should also mention Fred Elliott, an excellent purveyor of meat products in Banbridge.

[Stephen Pound]

There are strict rules in this House against the wearing of advertising. I appreciate that the top of my head is available, but I would prefer it not to be emblazoned with anybody’s name. I am more than happy to give credit to Fred Elliott, although I have to say that Quails is quite remarkable.

We have heard a range of speakers coming mostly around the same point, although they occasionally went off in slightly different directions. None was more recondite and esoteric than that of the right hon. Member for East Antrim (Sammy Wilson), who raised the terrifying prospect of the DUP standing in my constituency and those of other Members. That is something that I am prepared to wrestle with, although I have visited the right hon. Gentleman in Carrick and Larne and, the last time I visited Carrickfergus Council, a tank was parked outside the city hall. He apparently uses it for canvassing, so I would prefer him not to proceed.