Oral Answers to Questions

Mike Penning Excerpts

Wednesday 24th October 2012 Commons Chamber

[Rosie Cooper (West Lancashire) (Lab)]

3. What progress she has made on implementing the recommendations of the Northern Ireland Affairs Committee’s third report of session 2010-12 on Fuel Laundering and Smuggling in Northern Ireland, HC 1504.

[The Minister of State, Northern Ireland Office (Mike Penning)]

May I, too, pay tribute to Sir Stuart Bell? He served as shadow Northern Ireland Minister and served his country in many different roles. He will be a sad loss to us all.

Fuel fraud is primarily an excise offence and a matter for Her Majesty’s Revenue and Customs, which works closely with the Northern Ireland Department of Justice and its counterparts, including the Northern Ireland Office. I welcome the report by the Northern Ireland Affairs Committee. It was very useful, and many of the issues and recommendations it contains will be taken forward. Fuel fraud is taken very seriously and remains a high priority.

[Rosie Cooper]

Following the memorandum of understanding signed by HMRC and Irish revenue commissioners, will the Minister say what progress has been made on putting in place a single tender procedure for the marker for rebated diesel, and will he assure the House that there will be no slippage on the agreed timetable?

[Mike Penning]

Work continues on that agreement, and there is no doubt that dealing with fuel fraud, as well as with tobacco smuggling, is a top priority for the Government in the Province. We know that money from things such as fuel smuggling gets into the wrong hands and jeopardises the peace that we are all looking for.

[Mr Laurence Robertson (Tewkesbury) (Con)]

I welcome the Secretary of State and the Minister to their positions.

One recommendation in the report by the Northern Ireland Affairs Committee was that sentences for such crimes in Northern Ireland should be strengthened because they are far weaker than those in Great Britain. Will the Minister do all he can to help bring about those stronger sentences recommended by the Committee?

[Mike Penning]

I met the Minister for Justice in the Northern Ireland Assembly, and we will work together to ensure that the punishment fits the crime. As I said earlier, money made from such crimes often goes to the wrong areas, and we are looking forward to ensuring that it does not.

[Ian Paisley (North Antrim) (DUP)]

I add my voice of congratulation to the Secretary of State; I know that the people of Northern Ireland wish her and her colleague well in their new roles.

A recent HMRC report on measuring tax gaps revealed that fuel smuggling over the past year has increased from involving 12% of all diesel sold in Northern Ireland to 25%—a staggering increase. Does the Minister agree that HMRC must be encouraged to find a measure that will allow it to mark properly fuel in Northern Ireland, so that it cannot be stripped of its mark and sold as counterfeit?

[Mike Penning]

This sort of technical work is being looked at carefully, and one element that will help enormously is the lorry road user charging legislation that the Government started to bring forward yesterday. That will create a more level playing field for all hauliers—those who are hit hardest by this problem—across the entire United Kingdom including, quite rightly, in Northern Ireland.

[Ian Lucas (Wrexham) (Lab)]

4. What assessment she has made of the effect of the Government’s economic policies in Northern Ireland.

--- Later in debate ---

[Dr Alasdair McDonnell (Belfast South) (SDLP)]

5. What assessment she has made of the effect of the level of air passenger duty for short-haul flights on the regional economy in Northern Ireland.

[The Minister of State, Northern Ireland Office (Mike Penning)]

The impact of air passenger duty on Northern Ireland was carefully considered last year, and, in recognition of Northern Ireland’s unique circumstances, my right hon. Friend the Chancellor agreed to the Northern Ireland Executive’s request for the devolution of APD for all direct long-haul flights departing from Northern Ireland airports.

[Dr McDonnell]

I welcome the Secretary of State and the Minister to their first Northern Ireland questions, and associate myself with the kind comments about Sir Stuart Bell.

Is the Minister aware that the business community in Northern Ireland is unanimous in its view that the high level of passenger duty is helping to strangle potential economic recovery? Will he tell us more about the unique circumstances that he mentioned?

[Mike Penning]

I just about heard what the hon. Gentleman said. I think he asked about future APD. Interestingly, when I looked into the matter, the Executive did not ask for short-haul powers. If they had, we would have considered it. If they want short-haul powers, therefore, we will consider the matter, although there would, of course, be a cost to their own Exchequer.

[Andrew Bridgen (North West Leicestershire) (Con)]

Does my hon. Friend agree that the cut in APD in Northern Ireland will allow airlines to develop further long-haul services and significantly stimulate the Northern Ireland economy, and would that not be true across the whole of the UK?

[Mike Penning]

My hon. Friend draws me into territory that my right hon. Friend the Chancellor, who is sitting to my left, will probably ensure I do not dwell on. There was a sustainable argument for the exceptional circumstances in Northern Ireland. The Executive requested long-haul APD, and the Chancellor gave it to them. Should they request something more, we would consider it.

[Mr Gregory Campbell (East Londonderry) (DUP)]

Does the Minister agree that the reduction in APD is a key driver in attracting inward investment? Will he agree to negotiate with the Department for Enterprise, Trade and Investment, should it propose that short-haul APD—in other words, at Belfast City and Londonderry airports, as well as for international flights—also be reduced?

[Mike Penning]

I will continue to work as closely as I can with all parts of Northern Ireland, particularly the Department of Finance and Personnel and businesses, but there would be a cost to the Minister for Finance and Personnel, which I know he is aware of, but as yet we have not had a request for short haul. If we do, we will look at it.

[Mr Jeffrey M. Donaldson (Lagan Valley) (DUP)]

7. What discussions she has had with the Irish Government on extending the deadline for the completion of the Smithwick tribunal.

[The Minister of State, Northern Ireland Office (Mike Penning)]

As yet, I have not had the opportunity to have introductory discussions with the Irish Government, although I have had discussions with the Irish ambassador in London. Although the sponsorship of the Smithwick tribunal is a matter for the Irish Government, I am aware of the recent intention to extend the deadline for the tribunal to complete its work.

[Mr Donaldson]

It is absolutely crucial that the tribunal is extended because of the revelations in recent times. We need to get to the truth of the matter. These were the two most senior RUC officers to be murdered by the IRA and there is strong evidence of collusion on the part of Irish state forces, so we need to know precisely what happened.

[Mike Penning]

I think we would all agree that what we require is the truth. The Republic of Ireland Government have been asked for an extension, that is true, and we will give all the assistance we can. In recent weeks we have given more help in the form of the evidence we have discovered in the north and we will continue to do so.

[Naomi Long (Belfast East) (Alliance)]

8. What further steps she plans to take following the initial round of talks with Northern Ireland party leaders aimed at finding consensus on dealing with the past and its legacy.