Lord Swire
Main Page: Lord Swire (Conservative - Life peer)Department Debates - View all Lord Swire's debates with the Northern Ireland Office
(13 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Chris Evans (Islwyn) (Lab/Co-op)
2. What assessment he has made of the effects on the service sector in Northern Ireland of reductions in Government spending.
The Minister of State, Northern Ireland Office (Mr Hugo Swire)
Tackling the deficit remains the Government’s biggest priority, and Northern Ireland has its part to play in achieving that outcome. My right hon. Friend the Secretary of State and I are working closely with the Northern Ireland Executive to boost private sector growth and investment and to help rebalance the economy.
Chris Evans
I am sure that the Minister will have seen that 59,500 people are signed on the dole in Northern Ireland. Whenever anyone losses their job, it is a tragedy for their family and causes hurt and pain. What are the Government going to do about it?
Mr Swire
I welcome the hon. Gentleman’s interest in Northern Ireland, and I hope that it will continue. I hope also that he will join me in celebrating the jobs that the service sector in Northern Ireland has attracted. The New York stock exchange has attracted 400 new jobs; Citigroup financial services will attract 500 jobs over the next five years; and the law firm Allen and Overy has attracted 300 jobs in Belfast. To answer his question directly, I would say that Northern Ireland is a great place for the service industries. It is open and we want more investment, and I hope that he and his party will join us in making that happen.
Mr Shaun Woodward (St Helens South and Whiston) (Lab)
Well that all sounds very good, but in the past 12 months, the Northern Ireland claimant count has increased by 7%. That is the biggest increase in the UK and 21 times the national average. The Minister will know that the Northern Bank/Oxford Economics survey has now dramatically downgraded economic growth forecasts in Northern Ireland to 1.1% from a previous forecast of 1.9%. The Northern Ireland economy needs help now. What is the Minister going to do?
Mr Swire
It is regrettable that the Secretary of State is talking Northern Ireland down—[Interruption.] The independent Office for Budget Responsibility’s recent updated fiscal and economic forecasts show that the Government’s plans will deliver sustainable growth in each of the next five years with employment rising by 1.1 million by 2015 across the UK and the deficit falling. That of course includes Northern Ireland. The unemployment rate for Northern Ireland was down by 0.8% over the quarter and the number of unemployed people in Northern Ireland was estimated at 61,000—down 6,000 over the quarter. It is because of the Government’s determination to tackle the deficit and the legacy we inherited from a Government of which the right hon. Gentleman was part that these figures are good.
Mr Woodward
Regrettably, the only thing that is going down is an economic forecast from 1.9% to 1.1%. Undoubtedly the Minister will update his brief in due course. The Secretary of State proposes a change in corporation tax rates to help in the long term. I seek clarification. We know that the immediate impact of the cut in the block grant will be the loss of tens of thousands of jobs in the public sector, especially in education. However, if the policy in the medium term creates jobs, it follows that there will be additional revenue from income tax and a decrease in welfare payments. He wants the public sector, especially in education, to take the pain now, but in the future, if those benefits flow from increases in jobs and tax revenues, will the Treasury keep the money or will it go to the people of Northern Ireland?
Mr Swire
The right hon. Gentleman is right to raise the issue of corporation tax. There has been widespread consultation on the issue, and all the political parties in Northern Ireland support devolving the power to Northern Ireland. We believe that it will bring growth and jobs; equally, we believe that it is important to rebalance Northern Ireland’s economy, regardless of the situation that we inherited. Like me, the right hon. Gentleman represents an English constituency, and he will be aware that Northern Ireland receives about 25% more in spend per head of the population than England. It is therefore important that we rebalance Northern Ireland’s economy and allow it to grow.
Robert Halfon (Harlow) (Con)
3. What recent assessment he has made of the extent of petrol and diesel smuggling from the Republic of Ireland into Northern Ireland.
The Minister of State, Northern Ireland Office (Mr Hugo Swire)
Her Majesty’s Revenue and Customs leads the work to crack down on fuel smuggling and fraud, working closely with the Irish authorities. The Organised Crime Task Force, which is chaired by the Northern Ireland Justice Minister, estimated in its 2011 threat assessment that there is an annual tax loss of £200 million from fuel fraud and legitimate cross-border fuel shopping.
Robert Halfon
Estimates suggest that the Government actually lose between £280 million to £300 million a year to fuel smuggling and laundering in Northern Ireland. That pushes up fuel taxes for everyone, which is deeply unfair. Does my right hon. Friend agree that extending rural fuel pilots to the new economic zones would cut smuggling and save the taxpayer an absolute fortune?
Mr Swire
I agree that we need to save the taxpayer an absolute fortune, and I have had discussions about this issue with both the Northern Ireland Justice Minister and the Exchequer Secretary to the Treasury. I recently brought to the attention of the Exchequer Secretary and the Financial Secretary to the Treasury—who is here with us today—the comments of the hon. Member for North Antrim (Ian Paisley), who has some ideas about various companies that can help with the traceability of fuel. However, I would also point out to my hon. Friend that the “Cross-Border Organised Crime Assessment 2010” said:
“Changes in exchange and duty rates have made this…less profitable over the past few years than it would have been previously.”
David Simpson (Upper Bann) (DUP)
We have just heard about the amount of money that Her Majesty’s Government are losing in revenue to fuel smuggling and laundering. The Minister will be aware of recent findings of large amounts of fuel on the border. Can he please update us on the fuel duty escalator and the possible introduction of a pilot scheme in Northern Ireland?
Mr Swire
I think that I have just answered that question, which was not dissimilar to that asked by my hon. Friend the Member for Harlow (Robert Halfon). In direct answer to the point about co-operation across the border, relations are extremely good, as is true for all our relations with the Republic of Ireland, not least with the Garda. We are working in close co-operation, hence the success of the Organised Crime Task Force and HMRC in driving down fuel smuggling.
Mark Durkan (Foyle) (SDLP)
4. What recent representations he has received on the rate of VAT applied to tourism activities in Northern Ireland.
The Minister of State, Northern Ireland Office (Mr Hugo Swire)
Northern Ireland has enormous attractions for tourists and we strongly support efforts to encourage them to visit. The hon. Member for South Down (Ms Ritchie) raised the issue of VAT rates at a recent meeting with my right hon. Friend the Secretary of State, but these matters are not our direct responsibility.
Mark Durkan
The Minister of State should be aware that as of last week, VAT in the tourism sector in the south of Ireland has been reduced to 9% for 18 months. Similar steps have been taken in France and Germany. Will he and the Secretary of State use their standing with their colleagues in the Treasury to commend a sectorally targeted VAT cut for tourism throughout the UK?
Mr Swire
The hon. Gentleman knows that the EU average for VAT is 20.8%, whereas VAT in the UK is 20%. Germany’s lower rate is simply a mechanism to redistribute money from the centre to the Länder, as Germany has many local tourist—or “bed”—taxes. We would all like lower taxation and we would all like the deficit to be addressed, which is what we are seeking to do, but this is not just about the rates of VAT. London hotels are doing better than they have done for some time, there are more tourist visitors to Northern Ireland than there have been for some time and the hon. Gentleman’s city of Londonderry will be city of culture in 2013. We need to offer people value for money and good hospitality—that I am sure we can do—and the issue of VAT will then become secondary.
Ian Paisley (North Antrim) (DUP)
On future taxation policy, will the Secretary of State tell us whether the electricity White Paper that is soon to be published will contain proposals to address the fact that Northern Ireland has a single electricity market, linked with the Republic of Ireland? Will it address the implications of those arrangements for providers and users of energy in Northern Ireland, in that they could influence the market disproportionately?
Mrs Mary Glindon (North Tyneside) (Lab)
5. What assessment he has made of the role of dissident republicans in recent disturbances in the Short Strand area of Belfast; and if he will make a statement.
Toby Perkins (Chesterfield) (Lab)
9. What assessment he has made of the effect on economic growth in Northern Ireland of reductions in public expenditure.
The Minister of State, Northern Ireland Office (Mr Hugo Swire)
As I said earlier to the hon. Member for Islwyn (Chris Evans), tackling the deficit has to be the Government’s biggest priority, and Northern Ireland must play its part. My right hon. Friend the Secretary of State and I are working with Northern Ireland Ministers to attract growth and investment and to help rebalance the economy.
Toby Perkins
Northern Bank’s quarterly economic forecast states that Northern Ireland’s construction sector has hit a new low and is facing its fourth year of decline. It has already suffered some of the worst job losses anywhere in the country. Do the 10,000 people who could now lose their jobs, on top of those who have already done so, have any cause for optimism, given the complacency that the Minister showed in his earlier answer?
Mr Swire
I do not think that I showed complacency in my earlier answer. We are fully aware of the effect of the recession on the construction industry not only in Northern Ireland but in the whole of the United Kingdom. It has had a real effect in many of the border areas where people used to go down to the building sites of Dublin and earn their money that way. That is a serious issue for all kinds of reasons. The fact that we came to the aid of the Republic of Ireland has allowed us to have far greater involvement in its investment decisions affecting Northern Ireland, not least those of the banks, as well as in other issues of mutual interest.
Dr Alasdair McDonnell (Belfast South) (SDLP)
Does the Minister agree that air passenger duty is helping to strangle economic recovery in Northern Ireland? Does he have any plans to persuade the Treasury to make changes to it?
Mr Swire
As the hon. Gentleman knows, there has been a consultation process on air passenger duty, which is continuing, and we have discussed the issue with the Finance Minister at Stormont. These are issues that we take very seriously, not least in respect of what I describe as the economic umbilical cord—the link to New York by Continental airlines. We are keen to see that continue. A number of companies, including the New York stock exchange, came to invest in Northern Ireland because of that air route. As I say, we are taking this extremely seriously and we are batting for Northern Ireland.
Mr Peter Bone (Wellingborough) (Con)
10. What recent discussions he has had with the First Minister on the level of cross-border human trafficking to and from Northern Ireland.
The Minister of State, Northern Ireland Office (Mr Hugo Swire)
Data on the exact level of cross-border trafficking is not available, but there is clearly a cross-border element in many cases. I spoke yesterday to the Northern Ireland justice Minister and I know that he has been working closely with authorities in the Republic of Ireland to tackle this despicable crime.
Mr Bone
I thank the Minister for his response. People are being trafficked across the border with bogus papers. Unfortunately, they are being trafficked from this country into the Republic of Ireland. The Republic of Ireland is discovering trafficked people whose papers are so obviously bogus that they should never have been admitted to the United Kingdom in the first place. This is an issue that we really need to look at.
Mr Swire
My hon. Friend is, of course, absolutely right. The Minister for Immigration is working closely with his counterparts in the Irish Republic to ensure that we jointly strengthen our external borders against threats such as human trafficking gangs. I would like briefly to pay tribute, if I may, to my hon. Friend’s work on the all-party group and, indeed, to that of our former colleague, Anthony Steen and the Human Trafficking Foundation, which I hope to accompany to Northern Ireland. My hon. Friend has much to add to the debate. [Interruption.]
Mr Gregory Campbell (East Londonderry) (DUP)
Thank you, Mr Speaker. The ease with which cross-border trafficking between Northern Ireland and the Republic can occur is quite obvious and apparent to everyone. Will the Minister ensure that liaison with the Republic of Ireland’s authorities is stepped up to ensure that those who are being trafficked can be helped, given the problems that they are facing?
Mr Swire
We all want to hear the hon. Gentleman—I hope others heard him better than I did. The little that I heard was about cross-border co-operation. I can assure him that we have had some recent successes in Northern Ireland, as he will have seen from the newspapers. We work extremely closely with the authorities in the Republic. This is an issue that affects us all. It is a despicable thing, and I draw the attention of all Members to the Joseph Rowntree Foundation’s report “Forced labour in Northern Ireland”, which has recently come out and bears reading.
Mr Adam Holloway (Gravesham) (Con)
11. What recent assessment he has made of the Northern Ireland economy.