Northern Ireland Budget (No. 2) Bill

Lord Duncan of Springbank Excerpts

2nd reading (Hansard): House of Lords & 3rd reading (Hansard): House of Lords & Committee negatived (Hansard): House of Lords
Wednesday 18th July 2018 Lords Chamber

Moved by

[Lord Duncan of Springbank]

That the Bill be now read a second time.

[The Parliamentary Under-Secretary of State, Northern Ireland Office and Scotland Office (Lord Duncan of Springbank) (Con)]

My Lords, with regret and despite our best efforts to restore devolved government in Northern Ireland, the Northern Ireland political parties have not yet been able to reach an agreement to enable an Executive to be formed. As a result, and as noble Lords will be aware, it has fallen to the Northern Ireland Civil Service to continue to deliver public services in the interests of all communities in Northern Ireland. I join my right honourable friend the Secretary of State for Northern Ireland in commending the Northern Ireland Civil Service’s ongoing professionalism and commitment in these trying circumstances.

I assure the House that the UK Government have noted the recent Buick ruling and the questions that it has raised on the wider ability of the Northern Ireland Civil Service to continue to take decisions in the absence of an Executive. Both the NICS and the UK Government are considering the judgment very carefully indeed.

In the continued absence of an Executive, the Government have taken all necessary steps to support the Civil Service, to ensure good governance and to protect the delivery of public services in Northern Ireland. Of course this is not the first time that I have asked the House to consider a budget for Northern Ireland and I therefore beg noble Lords’ forgiveness if the explanation that I am about to provide is a little familiar to some of you gathered here.

Noble Lords will recall that my right honourable friend the Secretary of State provided a Northern Ireland budget for 2018-19 in a Statement to Parliament on 8 March. That budget position set out headline departmental allocations for the 2018-19 financial year providing the necessary certainty to the Northern Ireland Civil Service to manage and maintain public services throughout the early months of this financial year.

Building on that certainty, Parliament then approved as part of the Northern Ireland Budget (Anticipations and Adjustments) Act in late March 2018 a vote on account, which essentially provides the Northern Ireland Civil Service with the legal authority to actually incur expenditure and allocate funds in line with this budget position in the early months of the financial year. As is normal process with a vote on account, the limit is set to a maximum of 45% of the previous financial year’s allocations. As a consequence, further legislation is now required to provide the legal authority for the Northern Ireland departments to access the full funding available for the whole financial year. Without such legislation, the only avenue available would be for the Northern Ireland Civil Service to deploy the emergency powers under Section 59 of the Northern Ireland Act 1998 to allocate resources. The Government are committed to avoiding that necessity.

In order to put my right honourable friend the Secretary of State’s budget Statement on to a legal footing, to provide the Northern Ireland Civil Service with the legal authority to fully access available funds, and to avoid the need for the Northern Ireland Civil Service to resort to using emergency powers, I ask that noble Lords consider this necessary budget Bill.

This is a short, technical Bill. It would authorise the Northern Ireland departments and certain other bodies to incur expenditure of up to £8.9 billion and to use resources totalling up to £9.9 billion for the financial year ending 31 March 2019. The figures in this schedule of the Bill are in keeping with the Secretary of State’s budget Statement of 8 March.

While the legislation sets the headline departmental allocations only, it does not prescribe how the Northern Ireland Civil Service departments allocate these funds. In the absence of an Executive, it is for the Northern Ireland departments to implement their own budgets. How the Northern Ireland departments allocate these budgets is set out in a detailed main estimates Command Paper.

While this is a Northern Ireland budget being brought forward by a UK Government, it does not and should not be taken as a move towards direct rule. Nor does it remove the pressing need to have locally accountable politicians in place to take the long-term decisions needed to secure the future for the people of Northern Ireland.

While this is a technical budget Bill, we recognise the constitutional significance of Parliament having to deliver this for Northern Ireland. I therefore draw noble Lords’ attention to two important issues that do not form a part of the Bill expressly but which will be of interest to your Lordships as we debate the Bill.

First, as my right honourable friend the Secretary of State highlighted in her budget Statement, the overall figures allocated to departments include a further £410 million of UK government money from the £1 billion supply and confidence agreement. To be clear, the figures in the Bill include the £410 million. The Bill is not legislating for this amount. It was approved by Parliament for release as part of the UK main estimates Bill. This Bill simply allows the £410 million to be spent by the Northern Ireland Civil Service, and details of how it will be spent are set out in the Northern Ireland main estimates document. It should be noted that this is on top of the £20 million already released in 2017-18 to help address pressures in the areas of health and education.

Secondly, there is the matter of the accountability structures in place. In addition to placing all NIAO audits and value-for-money reports and the associated departmental responses in the Libraries of both Houses to enable accessibility and visibility to all interested Members and committees, my right honourable friend the Secretary of State will also write to the Northern Ireland political parties, highlighting publication of the reports and encouraging engagement with their findings. This is as robust a process as is possible in the circumstances. However, the best form of overall accountability and scrutiny of Northern Ireland’s public finances would, of course, be that undertaken by an Executive and a sitting Assembly in Northern Ireland.

The UK Government remain committed to providing Northern Ireland with good governance and political stability while efforts continue to restore devolved government at the earliest possible opportunity. Northern Ireland and its people deserve strong political leadership from a locally elected and locally accountable devolved Government. This remains our firm and absolute priority for the weeks and months to come. That said, in the absence of devolved government in Northern Ireland, the UK Government will always deliver on their responsibilities for good governance and political stability. On that basis, I beg to move.

--- Later in debate ---

[Lord Duncan of Springbank]

My Lords, I echo the tributes paid to the noble Baroness, Lady Blood. She grabbed hold of me in my first week in the Northern Ireland Office—I do not mean that figuratively; I mean quite literally—took me aside and explained some issues about education, which she was most passionate about. She will be missed here but I do not doubt that her voice will continue to be heard. I also pay tribute to David Ford. He fulfilled an extraordinary role in the Assembly and did good work. His voice also must continue to be heard in the councils where his experience can be drawn on. I suspect both have long careers ahead of them where they may yet give great service to Northern Ireland.

It is not often that I get my own words repeated back to me but, again, it is a sign that I have been doing this for quite some time that my words are now being interpreted. It is in itself quite a pleasure. I am never quite sure if I did indeed say certain things but I will take them on board.

This was an extraordinarily wide-ranging debate. I think the best way I can address it is like building a jigsaw. I will start with the outside square edges and then try to build into the centre. I will begin with a very categorical statement. It is a rhetorical question. How many more times can I do this? The reality is not many. The budget that rests in Northern Ireland, and which we are moving forward today, is based on the priorities set by the outgoing Administration. However, we are moving further and further away from that particular piece of certainty. It is like pulling apart a piece of toffee. It is still holding together but it is getting more and more tenuous and it will break. We cannot extend it too far.

Some have said that nothing has changed, but actually a lot has. The people of Northern Ireland are growing weary of the situation there. Their priorities are not being acted on. We are having to interpret them—often within legally challenged constraints, with more constraints yet to come—and we are trying our best to deliver against objectives that are becoming more and more difficult to maintain and to deliver at the very time when there are greater challenges ahead.

I will come on to speak about the money within the budget, but I want to stress one other thing. It might seem an odd thing to say in the middle of a debate about the budget, but money is not everything. Money is not the whole answer to this dilemma. The reality remains that we need full scrutiny and a situation where the Civil Service is not exposed to legal challenge, where it is given the support of democratically elected politicians. We also need the nuances that are brought in when we have to interpret how money should be spent, rather than historically gazing over our shoulder at how it was once spent and how we might be able to continue to spend it.

I echo the words of many noble Lords today who said that they speak with some regret. There should be no doubt that I too speak with some regret: I have no desire to be taking forward a budget for Northern Ireland. That responsibility rests more naturally and sensibly elsewhere. I shall try to address some of the more fundamental points raised by a number of noble Lords. It is appropriate, in this week of all weeks, as we recall the violence of the past few days, to consider exactly what a struggle we are witnessing inside Northern Ireland. Many noble Lords have said today that if there is a vacuum, violence will fill it: we are seeing evidence of that again already.

I emphasise that the Government have spent a considerable sum of money. Since 2010, almost £250 million has been invested in additional security services in Northern Ireland. Since 2015, £25 million has been invested through the fresh start agreement. Would it not be great if the money did not have to be spent on those things? Think of what we could do with a quarter of a billion pounds. Yet, sensibly and necessarily, that money has been made available and will continue to be made available. On the question raised by the noble Baroness, Lady Suttie, about the wider legacy issue and pensions, which I know is a matter dear to the heart of the noble Lord, Lord Hain, who is of course not in his place today, we have referred this to the Victims Commissioner. We are looking for further guidance on this point, but we cannot lose time: we need to be able to move forward, so once we are in receipt of information from the Victims Commissioner we shall take that on board and move forward with it.

When we talk about the importance of re-establishing an Executive, these are matters that rest more comfortably in the devolved sphere, but in the absence of that, we cannot allow this simply to drift. I know that the word “drift” has been used by a number of noble Lords today: we cannot allow that drift to continue. In the past I have used the phrase “thinking outside the box”. I note that the noble Lord, Lord Empey, condemned me by saying that it is not a box but a sarcophagus. From the papers over the last few days, I recall that a great, black sarcophagus has been found in the depths of Alexandria and there is a great fear of what will happen when it is opened. Will it be like some kind of Pandora’s box, when all the horrors of humanity pour forth? As I said a moment ago, I cannot keep doing this; we are at stage where change is coming. The question is what form that change will take.

The noble Lord, Lord Murphy of Torfaen, put forward a number of issues, not least of which is whether there can be an independent chairman. I note that his noble friend Lord Hain has already referred a name to me in that regard. I emphasise, as I did in the past, that we cannot set aside any of these issues. A number of noble Lords asked about the evolution in Northern Ireland: what can happen next? Noble Lords will know that there are broadly three options: we are at that tripartite road. We can continue to try, as best we can, to string out that piece of toffee, hoping it does not snap in the middle: that is one option. I am the living embodiment of that today. The other options are, of course, to move towards an election, and that is certainly on the table—my right honourable friend the Secretary of State for Northern Ireland has not in any way ruled that out. The final option, of course, is direct rule. Some today have said that this budget itself represents a form of direct rule. In truth, it represents a necessary and essential step to preserve good government in Northern Ireland.

Noble Lords will be aware that we have reached a critical stage: the previous budget Bill allowed us to allocate funds—45%. We will reach the point over the summer where we will have spent those funds, and we therefore need to move forward to ensure full allocation of the total amount of money. That will be a critical reality check for the civil servants in Northern Ireland. Of those three routes, one will have to be taken: the question is when and how it will unfold. The greatest hope of all is the magic option: that each of the parties will come back together again and be able to broker a deal that will address all these issues. I note, as a slightly ironic comment, that the last time all the parties were gathered together in Belfast was at the PinkNews awards only a few weeks ago: that, in itself, is a reminder of how far many of those parties have come over the last short period.

The noble Lord, Lord Empey, and many others, spoke of the importance of the court cases that are coming up, and the question of an appeal. That is being strongly and actively considered by the Northern Ireland Civil Service, which will have to move that forward. It is being actively considered by ourselves. As many noble Lords noted today, if we are found in any way not to be able to act in this regard, we will be in a very difficult position indeed. That is also true in regard to the RHI case: that would place even greater constraint upon us. We cannot be in a situation where good governance can be delivered neither by an absent Executive, nor by the UK Government in our current formation, so we will need to make progress to deliver, and to be cognisant of the realities of what those court cases will mean.

The noble Lords, Lord Empey and Lord Murphy of Torfaen, asked about the role of the Prime Minister. I can state today that the Prime Minister will be spending the next few days in Northern Ireland. I can also confirm that she has spent much time speaking with the parties. The point I make to noble Lords is that it is not just a question of what happens inside that room, and drawing the people into the room; it is how the individuals in the room communicate with their supporters outside the room. There is a bigger test here that we need to be able to wrestle and bring to the ground.

On the question of the supply and confidence money, the noble Lord, Lord Morrow, was quite right to stress that it does not rest in one single community; it is for all communities. Of the £1 billion total which has been set aside, £430 million will have been spent as we progress this budget Bill. Some £20 million was spent in the last period; that leaves £410 million. The noble Lord, Lord Morrow, was quite right to stress that much of that money will rest inside the health spend and the education spend: that is additional spending that would not be in Northern Ireland but for the supply and confidence fund. Importantly, £10 million of that is for mental health issues. It is also important to stress that, as a consequence of the Prime Minister’s commitment to funding for the NHS, there will be a significant Barnett consequential uplift in Northern Ireland—a figure, I imagine, of around £760 million, if my maths is correct, during the period 2023-24. That is jam tomorrow, not jam today, but it represents a significant investment of money which I hope will be available for health in Northern Ireland.

On the issue raised by the noble Lord, Lord Dubs, the Government have made funds available for the accommodation and housing of refugees and refugee children in Northern Ireland. If the noble Lord will allow, I will write to him in greater detail, to make sure he has all the information he is looking for. I am also very cognisant of the importance of integrated education. It is important for me to stress that that is, of course, a devolved matter and one which I hope will be able to be progressed. I suspect that if the noble Baroness, Lady Blood, is taking some time off from here, she may well wrestle some of these issues to the ground in Northern Ireland—she will be welcome there, I hope. We are supportive of the idea of an integrated educational approach in Northern Ireland, cognisant of the devolution settlement itself.

The noble Lord, Lord Alderdice, continues to ask me challenging questions, to which I do not always have appropriate answers. To take up some of his points, we cannot right now place upon the shoulders of civil servants the pressures they have had to withstand—the two impending court cases and appeals stand testimony to that—and we must therefore move forward with a new way of thinking. I am conscious, as he rightly points out, that civil servants are conservative—with a small C—and that is why we end up with very cautious spending, rather than the spending that elected representatives might be willing to embrace. I am conscious that we need to make sure that we are in a position where the realities of the challenges in Northern Ireland are dealt with.

I was struck by the note raised in the debate by the noble Lord, Lord Bew: the demographic time-bomb which many of the home nations are wrestling with is not actually the same challenge in Northern Ireland. I would be fascinated to understand more about that. I am going to do my own investigations to understand more about exactly how that will work in practice. In so recognising, it therefore means that the solutions to the challenges of Northern Ireland cannot be taken from a textbook. They need to be tailored to the situation that we witness.

The noble Lord, Lord Kilclooney, took us again into the back story that brings us to the point we have reached. It is a reminder that many of the challenges that we face today have a lengthier pedigree. Importantly, the noble Lord stresses the value to the communities of Northern Ireland of this additional supply and confidence money. We need to make sure, however, that that money can be spent. There will come points when we cannot, by our current methodology, create funding proprieties to spend all of the money. It simply will not be deliverable under our current arrangements so, although the £1 billion will remain an important sum of money, unless we can make some serious progress, it will remain at least partially underspent.

As to where the money that has not yet been spent is, I do not think it rests in a big bank account somewhere, but it might do. The reality is that it is money that is fully available to the communities of Northern Ireland, which will be spent delivering the very good work that the noble Lord, Lord Morrow, stressed throughout his speech. It is important to remember that that money can indeed do good things. Making sure that we can spend it will be the ultimate test.

The noble Baroness, Lady Harris of Richmond, raised a number of technical points about how we could move things forward. I admire the points that were being raised and I recognise that, if we could do them, we would make some progress. I fear that the first step in that process is a challenging one—how we get from where we are to delivering against them. We need to be in a situation soon, however, where a lot of these issues are addressed, I would hope, by an incoming, re-established, sustainable Executive. We need to be conscious that this is a necessary step.

The spending of monies will continue to be scrutinised, as it has been before, by the various bodies that are responsible for auditing in Northern Ireland. Those figures and reports are made public and I will ensure that, when they are published, a note of that publication is registered with your Lordships to make sure that they are fully aware of them.

I note with some curiosity the question of libel law reform from the noble Lord, Lord Bew. I would like to learn more of that, so I am going to invert tradition and ask him to write to me, so that I can learn more about what he had in mind. He was also correct in stressing the importance of how information can be used and misused. He was absolutely correct when he was talking about the checks around the Irish border. We need to be clear that we are not talking about a borderless border; there are still realities that interface between Northern Ireland and Ireland itself—or, as the noble Lord, Lord Kilclooney, would say, the Republic of Ireland—depending on how they touch together. The purpose of the British-Irish Council is to deal with east-west issues. That is its principal purpose and what it should continue to do, within the context of the Good Friday agreement.

The noble Lord, Lord Morrow, carefully raised the issue of abortion and wider abortion services. He also gave me an opportunity to write to him, and I will take him up on that kind offer. That is more appropriate, so that I can be absolutely clear what the answers are and make sure that I am not short-changing him in any way. I note again that the figures quoted are serious contributions to Northern Ireland financially, and that they stem from the passing of this particular budget Bill.

I conclude with the remarks of “Direct Ruler Murphy”, or the noble Lord, Lord Murphy. I like it as a term although I recognise exactly what it means. I hope there is a recognition that we are not going to shirk responsibilities. We have not been successful in delivering what needs to be delivered. There is enough blame to rest upon a number of shoulders, and we do not claim ownership rights over all of it. We will, however, need to make progress. I am not invoking the sarcophagus of the noble Lord, Lord Empey, but rather the needful elements that we must embrace; in the next few months each of the issues raised by the noble Lord will have to be seriously considered. We cannot continue to move forward on the basis that we have established so far. It is now without the underpinnings to give it the confidence of the people of Northern Ireland or, indeed, wider democratic confidence itself.

[Lord Empey]

I am sorry to interrupt the Minister, but he goes back to his analogy in his three-way split: the current position, direct rule or a restoration of devolution. That worries me, because it does not introduce any new thinking. The answer in the short term will have to be somewhere between those different options. I was hoping to hear that there would be a look at options, whatever they might be, before we close all those doors. I raised a question about police pay and the Hart inquiry. Perhaps the noble Lord would write to me on those matters.

[Lord Duncan of Springbank]

I thank the noble Lord for this intervention. We have not reached a fork in the road; technically, we have reached a trident in the road as there are three options. In response to the noble Lord, Lord Murphy, we must find new ways to travel along those roads. There need to be new ways of thinking about this so I cannot, in good conscience, rule out any of the issues that I believe the noble Lord, Lord Murphy, has brought to the debate today. Each of those may yet play its part and will have to do so sooner than might have been the case had we not been where we stand right now, cognisant of the challenges of delivering this budget within the timescale that we have. I am very aware of that.

I am aware that policing is a devolved matter, but it deserves a greater response than trying to swipe it away with that statement. I will again take the opportunity to write to the noble Lord and give a fuller answer.

A number of noble Lords raised the question of MLA pay. In short order, my right honourable friend the Secretary of State for Northern Ireland will be addressing that matter. It is time to do that.

In finally responding to the noble Lord, Lord Murphy, I am aware and pleased that he is able to support the necessary steps, recognising that it is what it is, which is necessary. The measure is short and technical, but it also recognises that we do not wish to be where we are. That is something I am very conscious of. I have no desire to stand here and do this again, fun though it is.

I am going to slightly change the tone of the debate, because that might be useful. Many noble Lords will know one of the poets of Northern Ireland whose name is Carol Rumens. She wrote “Prayer for Belfast” and I am going to read it, because it is perhaps apropos today:

“Night, be starry-sensed for her,

Your bitter frost be fleece to her.

Comb the vale, slow mist, for her.

Lough, be a muscle, tensed for her.

And coals, the only fire in her,

And rain, the only news of her.

Small hills, keep sisters’ eyes on her.

Be reticent, desire for her.

Go, stories, leave the breath in her,

The last word to be said by her,

And leave no heart for dead in her.

Steer this ship of dread from her.

No husband lift a hand to her,

No daughter shut the blind on her.

May sails be sewn, seeds grown, for her.

May every kiss be kind to her”.

Bill read a second time. Committee negatived. Standing Order 46 having been dispensed with, the Bill was read a third time and passed.