Northern Ireland: Political Agreement

Lord Empey Excerpts

Thursday 19th November 2015 Lords Chamber

[Lord Dunlop]

In this House a few weeks ago we had a Statement about the assessment that had been made. The Government continue to agree with that assessment, and I am not sure that I can add more at this stage to what was said on that occasion. Clearly, though, we are determined to tackle organised criminal activity, which has such a corrosive effect on the well-being of Northern Ireland.

[Lord Empey (UUP)]

My Lords, I take this opportunity to wish Mr Robinson well in his retirement. However, I wish to disabuse the House of any idea that this is a five-party agreement. The document was pushed in front of our faces at 3 pm on Tuesday, and that applied to three out of the five parties. The final plenary session of the talks process was one hour later, and no one should be required to absorb a 67-page document in one hour. So let us be clear: this is a two-party agreement, it is less than the one that we had Statements on a year ago and huge areas are unresolved.

Will the Minister address the fact that the reason why we have a huge impasse here is not only that Sinn Fein reneged on the agreement on welfare that was made a year ago but the four consistent years of massive financial mismanagement? We are now faced with the situation that the budgets were known four years ago but no action was taken to meet expenditure on budgets, which meant that for the first time since 1921 Stormont could not balance its books. Secondly, and worse, we are now being allowed to borrow £700 million to pay off 20,000 public sector workers, instead of action having been taken at the time to gradually run things down by natural wastage and other mechanisms that would have cost the taxpayer nothing. Why did the Northern Ireland Office allow this situation to develop, watching millions of pounds of public sector money being squandered and wasted? What steps will the Minister take to ensure that the budget will be operated properly in future and that taxpayers will get value for money?

[Lord Dunlop]

I thank my noble friend. I note what he says about the position of other parties. All the parties have been engaged over a 10-week process and, as I said, it has broken a very damaging impasse. I hope that all Northern Ireland politicians will want to get behind the agreement and build upon it.

As for the finances, welfare reform and putting the budget on a sustainable footing have been two of the most intractable problems that we have been grappling with. It is important to say that all the new money that is part of this agreement is contingent on the Northern Ireland parties meeting the commitments that they have entered into. The agreement includes spending to save measures and there is no free ride in it. In addition to the implementation of welfare reform, instilling fiscal responsibility into managing the finances of Northern Ireland is critical to the agreement. Additional financial controls are part of the agreement—it is no longer possible to set unrealistic budgets—and it makes provision for a new, independent fiscal council. These are all things that are really important to ensuring that we do not get into the financially risky situation that we have seen over the last few months.