Newry HMRC Centre

Mark Durkan Excerpts

Tuesday 3rd December 2013 Commons Chamber

[Ms Ritchie]

I thank the hon. Lady for her intervention. I sit on a cross-border committee organised by Newry and Mourne district council. A representative from HMRC in Newry attends its meetings and deals with illegal fuel laundering. The last meeting was some six weeks ago, and good progress has been made on that, on foot of the report of the Northern Ireland Affairs Committee, and the good work being carried out by HMRC in dealing with illegal fuel laundering.

[Mark Durkan (Foyle) (SDLP)]

As my hon. Friend knows, Foyle House in Derry, in my constituency, is also affected by the proposals. She is rightly emphasising the fact that jobs are at stake, but does she agree that the quality of services is also at stake? When other taxation services have moved out of Northern Ireland, not least those involving the administration of tax credits, many people—particularly cross-border workers—have been left with very poor services and chronic problems.

[Ms Ritchie]

I thank my hon. Friend for his useful intervention. I agree wholeheartedly that there is a need for this service, particularly in regard to cross-border working, as there is a considerable interchange of population between the north and the south. In his case, it is between Derry and Donegal; in my case, it is between Newry and Dundalk. In my area, there is a memorandum of understanding between both councils, north and south, to deal with economic issues in order to pump-prime the local economy.

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[Mr Gauke]

I reiterate that HMRC will honour the commitment made earlier in this Parliament that Newry will be open at least until 2015. A final decision will be made only after consultation, as I have outlined. I do not wish in any way to hide from the point—indeed, HMRC has been very clear about this—that HMRC does not see Newry having a future in the long term. The final decision as to when any closure would take place will be made, as I have said, after consultation. The choice for HMRC in the circumstances is to try to conceal that and leave things to the last minute or to try to be as open as possible, engage with staff and provide opportunities at an early stage for those who might want to leave voluntarily with a severance package.

[Mark Durkan]

In the decisions that HMRC is making about its future pattern of business, has any account been taken of the possible changes in the distribution of taxation? The Government have recently indicated that there are shifts in relation to Wales, and who knows what is going to happen in Scotland? If other choices are being made on some taxation moving to a more devolution-weighted basis, surely having a revenue-collecting infrastructure available in a devolved area is hugely important?

[Mr Gauke]

The hon. Gentleman makes an interesting point. HMRC is going in the direction of concentration on larger urban offices that have the flexibility to operate. Included in those larger urban offices is Belfast. He tempts me to speculate on future policy matters in the devolution of tax, but I want to make it clear that this is not a proposal to withdraw from Northern Ireland. This is a proposal that applies across the United Kingdom, with a move to larger urban centres. That applies in Northern Ireland, as well as elsewhere.

May I deal quickly with the issue of the equality impact assessment, which is an important matter raised by the hon. Member for South Down? The equality position has been considered, and it has been concluded that there is unlikely to be a disproportionate impact on any of the protected equality groups as a result of the voluntary exit schemes. Consequently, completion of an equality impact assessment is unnecessary. A people impact assessment has been completed, however, and audiences likely to be affected have been identified and appropriate mitigating action will be taken to eliminate those impacts.

If HMRC does decide to close any offices in future it will identify all redeployment options for affected staff. However, because its estate and work force will become smaller, there will clearly be less chance of redeployment in HMRC, particularly in areas that are outside a reasonable daily commute.