Northern Ireland (Ministerial Appointments and Regional Rates) Bill

Lord Dunlop Excerpts

2nd reading (Hansard): House of Lords & 3rd reading (Hansard): House of Lords
Wednesday 26th April 2017 Lords Chamber

Moved by

[Lord Dunlop]

That the Bill be now read a second time.

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

My Lords, the context for this short and simple Bill is very clear. Northern Ireland has enjoyed the longest unbroken period of devolved government since the old Stormont Parliament was dissolved in 1972. It is now nearly 10 years since full power was restored to the devolved institutions in Northern Ireland following a prolonged period of suspension. In these years Northern Ireland has taken important and positive steps forward. Northern Ireland is today a more peaceful and prosperous place than it was. Of course, there are still too many acts of wanton violence. Paramilitary activity and terrorism have not yet been eradicated from the streets of Northern Ireland, as we saw all too clearly with the placing of a significant bomb over the weekend by dissident republican terrorists next to a primary school in north Belfast. This is an outrage, putting innocent lives at risk. I pay tribute to the work of the police and other emergency services who work so hard to keep us all safe.

It is clear also that significant economic and social challenges remain to be overcome, so we are all united in this House and beyond in our desire to see the momentum of the peace process maintained. Momentum is what the people of Northern Ireland want their political leaders to deliver, whether here at Westminster or in Stormont. The continuation of strong and stable devolved government is what people voted for in large numbers in the recent Assembly elections. It is what they expect. It is what they deserve. We must not let them down, so protecting the interests of the people of Northern Ireland is at the heart of this simple, three-clause Bill—a Bill designed to ensure that every opportunity is given for an Executive to be formed so that the ratepayers of Northern Ireland do not suffer greater difficulty in managing their bills or that a gap does not open up in funding for essential public services.

It is ultimately the UK Government who have responsibility for maintaining political stability in Northern Ireland, and the Government take that responsibility very seriously. My right honourable friend the Northern Ireland Secretary has updated Parliament regularly in recent weeks. In doing so, he set out his intention to bring forward legislation with two aims in mind: to provide the legal basis for an Executive to form and to set a regional rate to enable that important source of revenue to be collected. In the final full week of this Parliament, the time is right to deal with both those matters, providing greater certainty for the people of Northern Ireland and creating the opportunity for the parties to come together to secure the resumption of devolved government. The way in which this Bill deals with the latter issue takes into account the reality of the forthcoming general election.

I know that the House understands very well the background leading up to today’s Bill. The collapse of the previous Executive in January placed a duty on the Northern Ireland Secretary to set a date for a further election. He did so in January, with the election held on 2 March. Since then, the Secretary of State has been engaged in talks with the political parties and, as appropriate, the Irish Government, in accordance with the well-established three-stranded approach. These talks have had one clear purpose: to re-establish an inclusive devolved Administration in line with the 1998 Belfast agreement and its successors.

When the new Assembly sat for the first time on 13 March, it set in train a 14-day deadline under the Northern Ireland Act 1998 for an Executive to be formed. That deadline, however, came and went on 27 March. The failure to form an Executive within the prescribed period meant that my right honourable friend was placed under a further duty to set a date for another election. At that point, it was no longer possible for an Executive to form without either another election or new legislation specifically enabling Ministers to be appointed to an Executive.

With talks under way and a realistic prospect of an agreement being reached, to have called another Assembly election would not have been appropriate—a view widely shared, not least by many in this House. Therefore, following consultation with the parties and the Irish Government, the Secretary of State convened a further phase of intensive round tables in the 10 days before Easter.

Progress was made on several fronts during that phase on the formation of an Executive, on the budget and on the programme for government. There was progress too in terms of legacy. Constructive discussions took place with all the parties on the detail of the legacy institutions set out in the Stormont House agreement and the need to reform legacy inquests. As my right honourable friend said on Monday in the other place:

“Although no one will underestimate the challenge of addressing the legacy of the past, the proposals are now sufficiently developed that the next step should be to publish them for consultation”.—[Official Report, Commons, 24/4/17; col. 918.]


In that way, we can listen to the views of victims and survivors and all those who will be most affected by the proposed new institutions.

However, looking at the talks as a whole, it was clear that outstanding issues remained to be resolved and that a period of reflection was necessary to give the impetus for discussions to reach a successful conclusion. As a result, the talks were paused over Easter and, since then, meetings have continued between the parties.

The Government are clear that the restoration of devolved government remains achievable and the absolute priority. However, that will require more time and more focused engagement by the parties on the critical issues that remain, building on the discussions over the course of the past eight weeks. The Government’s hope, and wish, is that the parties can use this period to build on the progress made so far. This is particularly important given that, with an election on 8 June, if a deal is not reached now, the people of Northern Ireland will be faced with nearly six months without an Executive.

The Bill before this House today would provide the space, and the opportunity, for the parties to do just that. The Government consider this to be the most practical way forward for the people of Northern Ireland in the current circumstances. It is an approach that recognises the current focus on the general election and provides the scope for the parties to continue discussions and to resolve outstanding issues, while providing time for an incoming Government to consider their options if a deal does not prove possible before the election. This gives the best possible opportunity for restoring a strong, stable and inclusive devolved Government. I take this opportunity to place on record my gratitude to the parties opposite for their constructive and positive engagement during the process leading up to this point, and for their support for the measures we are proposing today.

Moving to the substance of the Bill, as I have said, Clause 1 would remove the present legal barrier to an Executive being able to form to enable any deal reached to be implemented. It would retrospectively reset the 14-day clock in the Northern Ireland Act 1998, which expired on 27 March, with a 108-day period, removing the present duty that the Northern Ireland Secretary is under to set a date for an election, with this arising again at 4 pm on Thursday 29 June. After that time, as now, an Executive would no longer be able to form. To be clear, this extension applies to the specific circumstances following the last Assembly elections and does not represent a more fundamental change to the Northern Ireland Act 1998. It will provide the space in the current circumstances for an Executive to form, making clear that the parties are not absolved of their responsibility to make progress.

Let me reiterate the point that if a deal was not already in place, it would provide a period for further talks in the new Parliament, allowing the parties to take stock and move forward. It would mean also that if a deal is not struck, there is a period for the new Government to properly consider the way forward. That is important. In the absence of a deal there will be significant decisions to be made in the new Parliament to provide political stability in Northern Ireland. None of us hopes to face that situation, and this Bill is intended to provide the framework to avoid that outcome. I hope, as I am sure the whole House does, that the parties will seize the opportunity, whether in the coming weeks or soon after, to deliver the Executive for which they have such a clear mandate to secure.

I turn now to Clause 2 on the regional rates. Two acute issues of financial uncertainty are caused by the lack of an Executive. The first is the absence of a 2017-18 regional rate, which represents more than 5% of the total revenue available to the Northern Ireland Executive. Normally this would have been set by the Department of Finance earlier this year via an affirmative rates order in the Assembly. This would have enabled bills to be issued in 10 instalments, giving certainty to ratepayers and allowing various payment reliefs to be applied. However, time has nearly run out for that course. If no rate is set in the next few days, there will be fewer bill instalments of higher amounts, and the longer it takes to set a rate, the worse that situation would become. The only outcome would be bad debt, lost revenue, uncertainty and hardship. Therefore, while we are clear that this is a devolved matter, we are clear also that in the current circumstances only the UK Government can take action to secure the interests of individuals, businesses and indeed the Executive.

Clause 2 addresses this issue by setting a 2017-18 regional rate in Northern Ireland. It does so by setting “pence per pound” rates for both domestic and non-domestic properties. These rates represent a 1.6% inflationary increase, the same approach as was taken by the Executive in setting a rate the year before. As we make clear in Clause 2(4) and (5), it would not cut across the continuing right of the Executive to set a rate by order in the usual way. This would be the most limited step available to us, taken at a point beyond which we cannot delay.

The second financial matter is the lack of a 2017-18 budget. Its absence has meant that since the beginning of this month, civil servants alone have been in charge of allocating cash, which is by no means a solution for the longer term. Before Easter, therefore, the Secretary of State made it clear that he would provide further assurance in this regard if an Executive were not in place, reflecting the UK Government’s ultimate responsibility for political stability in Northern Ireland. The Secretary of State has now provided that assurance in the other place.

First, he has indicated that the Government would be prepared, as a last resort, to pass an appropriation Act in the next Session to provide legislative authority for the expenditure of Northern Ireland departments. Secondly, the Secretary of State has published a Written Ministerial Statement, following the advice of the Northern Ireland Civil Service, setting out indicative departmental allocations. These reflect the budget priorities and decisions of the previous Executive and provide a basis for allocations in the absence of an Executive. These totals would not constrain the future freedom of an incoming Executive to amend expenditure allocations.

These are not steps any Government would take lightly. However, they reflect the duty Parliament owes to the people of Northern Ireland and the Government’s ultimate responsibility, as I say, for political stability and good governance. By passing this Bill we can provide the scope and space for a deal to be done by the parties. The Government will continue to work intensively to secure that outcome in the critical weeks to come. That is what the people of Northern Ireland voted for and it is what businesses, community groups and individuals across Northern Ireland want to see. It is what this Bill seeks to deliver and I beg to move.

--- Later in debate ---

[Lord Dunlop]

My Lords, first, I thank all noble Lords who have contributed to today’s proceedings, providing valuable and important exchanges on the Bill. I very much agree with what the noble Lord, Lord Murphy, said. Today, we have heard great wisdom from noble Lords across the House, as I think is always the case when we have debates about Northern Ireland.

A theme of the debate has been that this is not where any of us wanted to be but it is where we are, frustrating though that is, as the noble and right reverend Lord, Lord Eames, rightly said. I think that there is broad agreement across the House on the steps that the Government are taking today. Another theme that has come across very strongly is that, in searching for solutions to restore devolved government in Northern Ireland, there is a need to show imagination and creativity. That was mentioned by, among others, my noble friend Lord Trimble, the noble Lords, Lord Empey and Lord Alderdice, and my noble friend Lord Cormack.

I extend my thanks once again to the parties opposite and to all others for their support for the Bill and agreeing to its faster than usual passage through this House. As we have heard, the Bill is short and modest in scope, but it provides the framework within which the parties may come together, reach agreement and form an Executive. That is what the people of Northern Ireland voted for on 2 March, and it must remain the focus. This Government will always uphold their responsibilities on political stability and good governance in Northern Ireland. That is why the Bill provides the flexibility for an incoming Government to act in the best interests of Northern Ireland and the space for the parties to conclude a deal. I am very appreciative of the support of the House for this approach.

I was grateful too for the support there was for the Government taking the exceptional step of having this Parliament set a regional rate for Northern Ireland for this year. Although very much a step we had hoped to avoid, it is an essential move for securing greater financial certainty for individuals and businesses in Northern Ireland.

I turn now to some of the specific points raised during the debate. Obviously, one important theme was the question of where the talks go from here and what that will mean for deadlines and creative solutions. These issues were raised by the noble Lords, Lord McAvoy, Lord Browne, Lord Empey, Lord Trimble and Lord Lexden, and the noble Baroness, Lady Suttie. It is very important that we do not absolve the parties in Northern Ireland of their responsibilities to resolve their differences. The Secretary of State will be meeting the parties tomorrow to consider the way forward. That is the right moment to consider how best to proceed.

Of course the UK and Irish Governments will continue to maintain contact during the election period in line with the three-strand approach, and of course the Northern Ireland Office will continue to be prepared to uphold the UK Government’s responsibilities during the pre-election period. As I have said, the Bill provides the necessary space for agreement to be reached, and that is where the focus should rightly be.

However, this process cannot drag on indefinitely. Clearly, if no agreement is reached then an incoming Government would have to look at the full range of options available. I am sure that any Government coming in after the election would want to examine any creative solutions that are on the table. As has been said by others in this debate, nobody wants a return to direct rule. We want a return to strong and stable devolved government in Northern Ireland.

Brexit has been mentioned, as has the priority that the Government attach to Northern Ireland issues. As we have debated in the past in this Chamber, Northern Ireland clearly has unique interests and those interests are an absolute priority for the Government and the Prime Minister. That was reflected in the Prime Minister’s Article 50 letter, and the Government are encouraged by the priority that has been shown in the draft EU negotiating guidelines, which reciprocate the priority that the Government themselves attach to Northern Ireland issues. As we have discussed and debated many times before, no one wants a return to hard borders, and we want to maintain the momentum of the peace process.

Mention was made of the general election—how could we avoid it? The Prime Minister is seeking a strong mandate to deliver the best possible deal, not just for Northern Ireland but for the UK as a whole.

Representing the interests of Northern Ireland is absolutely why we need the Northern Ireland Executive to be re-formed and get up and running again. In the meantime, the Northern Ireland Office will continue to champion the interests of Northern Ireland in discussions in Whitehall. We have been actively engaging with stakeholders across Northern Ireland to make sure that we understand and represent those interests effectively.

Legacy was mentioned by the noble Lord, Lord McAvoy, and the noble and right reverend Lord, Lord Eames. The Secretary of State for Northern Ireland is absolutely clear that we should move to a period of public consultation. Clearly, the timing of this will be a matter for an incoming Government after 8 June, but there is widespread agreement that the current situation is unsatisfactory and we must find a better way—and better outcomes—for victims and survivors that is fair, balanced and proportionate.

On the issue of rates, I can confirm that all the parties were consulted on the approach to the rate and the Government’s approach has been informed by advice from the Northern Ireland Civil Service, in line with scenarios that were provided by officials in the Northern Ireland Civil Service to the political parties. On the resources available to local councils, I reassure the House that any delay in setting a rate has not interrupted the income of local councils.

In conclusion, I am grateful to all noble Lords for their support for the passage of the Bill and I thank my officials for the support they have provided. I am also grateful for the support of the Northern Ireland Civil Service. As I have said, the Bill provides the scope and space for a deal to be done, which is what businesses, community groups and individuals across Northern Ireland want. I am sure that I speak for the whole House when I express my sincere hope that all sides use the opportunity that the Bill provides to secure the resumption of devolved government in Northern Ireland at the earliest opportunity. I ask the House to give this short and simple Bill a Second Reading.

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