(9 years, 10 months ago)
Commons ChamberThat is one of the reasons, of course, that some people say the public sector accounts for as much as 62% of employment in Northern Ireland. Some of it is disguised in the way the hon. Lady suggests.
We have to consider whether we can simply sit on our hands. However, there is a second consideration for the Northern Ireland Executive. Yes, there is some risk attached to the policy; all economic policies carry some risk, but in measuring and trying to balance that risk, we have to consider the impact of the policy elsewhere, especially in areas similar to Northern Ireland. I have already mentioned the approach of the Republic of Ireland Government.
As the changes to the rules on accounting and disclosure come forward, I know that some of the financial services issues might be addressed, but we have not touched on the ongoing cost of the devolution of corporation tax, which is currently reckoned to be about £300 million. However, as the economy grows, a formula will be imposed in respect of the loss of revenue, and given that there could be a substantial reduction in corporation tax in Northern Ireland, the formula must not be draconian. For example, if it was set at an unrealistic rate, based on the performance of better performing regions or of the UK economy as a whole, the burden could become substantially higher as time goes on. We need clarity on that issue.
The right hon. Member for North Shropshire said that from this day on the Executive should be proceeding with this matter, but we cannot do so because the Bill has not yet been passed. I know he is enthusiastic, but I think his enthusiasm has run away from the reality: the Bill has to pass its stages as normal.
I said that the Northern Ireland parties should make an announcement now about what they intend to do with the powers once the Bill has passed. If such an announcement were made, in the two years between now and April 2017, local businesses, UK businesses and, above all, foreign business could begin to plan in the knowledge that they would benefit from a much lower rate of tax. The hon. Gentleman is right—we have to pass the Bill, and I am delighted it has the support of the Opposition—but it is vital that, from today, the local parties say what they would do with these powers, on the basis that the Bill will pass before Dissolution.
On the last point, given that the ongoing cost is not known yet, there remain some issues to resolve.
There is a challenge, not for politicians, but for the businesses that have campaigned for the devolution of corporation tax. As the shadow Secretary of State said, those businesses have a responsibility not to use their profits simply to pay higher salaries for managers, for shareholders or for vanity projects. Having campaigned for this change, and given its implications for expenditure in Northern Ireland, they have a responsibility to ensure that the additional money that results from forgoing tax revenue is invested in their companies to increase productivity, make them more competitive and create better-paid jobs. Only then will this campaign have been a success.
(11 years, 6 months ago)
Commons ChamberI am grateful to my hon. Friend. I know that he is in close touch with the farming community, and we appreciate that it is under great pressure, which is why we are determined to introduce measures that will, we hope, reduce the disease in high-risk areas and, crucially, stop it going into low-risk areas.
The Secretary of State has highlighted the costs to the individual farmer and the taxpayer, but does he recognise that having disease-free cattle is important to the agri-food industry—a multi-billion pound industry in the United Kingdom that is especially important to economies such as Northern Ireland’s?
The hon. Gentleman is right to mention the potentially very serious impact on the agri-food industry if we do not get a grip on this disease. We are determined to work on this policy, and to learn the lessons from the experience of the neighbouring state of the Republic of Ireland and other countries.
The task of managing bovine TB and bringing it under control is difficult and complex, but that is no excuse for further inaction. This Government are committed to using all the tools at our disposal and continuing to develop new ones, because we need a comprehensive package of measures to tackle the disease. International experience clearly shows that controlling wildlife species that harbour the disease and can pass it on to cattle must be part of that package.
(12 years, 5 months ago)
Commons Chamber1. What discussions his Department has had with HM Treasury on loss of revenue as a result of fuel laundering in Northern Ireland.
My Department has regular discussions with HM Treasury on a wide range of issues. Fuel fraud is primarily an excise offence and, therefore, an excepted matter that falls to Her Majesty’s Revenue and Customs, which works closely with the Department of Justice for Northern Ireland and its counterparts in Ireland.
Despite the fact that over the past six years more than £2 billion has been lost in revenue as a result of criminal activities through fuel laundering, HMRC has taken only 28 cases to court, and there has been only one custodial sentence, which was suspended. Does the Secretary of State believe that that is an adequate response from HMRC or the court system in Northern Ireland?
I thank the hon. Gentleman for his question and I appreciate his knowledge of this subject, as Minister of Finance and Personnel. He makes a very good point, which I have discussed with David Ford, the Minister of Justice. We have agreed that we should work together so that Northern Ireland sentences can be appealed against if considered too lenient.
(13 years ago)
Commons ChamberI entirely agree with my hon. Friend. One survey showed that public spending represents 77.6% of GDP in Northern Ireland. We know that that is wholly unsustainable, and we are committed to rebalancing the economy over time, working closely with the Executive.
One of the ways of rebalancing the economy towards the private sector is to ensure that there is a flow of funds from the banking sector to private firms. What steps will the Government take to ensure that the credit easing measures announced yesterday will apply effectively in Northern Ireland, given the lack of market penetration by UK mainland banks and the high dependence on Irish banks?
I am grateful for the opportunity to clarify that the national loan guarantee scheme, which the Chancellor announced yesterday, applies to Northern Ireland. That will be of great benefit to small businesses right across Northern Ireland.
(13 years, 2 months ago)
Commons ChamberAgain, I say that we accept the verdict of Stevens that there was collusion and we have apologised. What we have set out today is a swift route to the truth.
May I welcome the Secretary of State’s statement and express my disappointment that the anger that has been expressed by the family is being used to indicate that the peace process in Northern Ireland is so fragile that it will somehow fall apart as a result of the disappointment of one family? The Secretary of State has given us details about the inquiry, but will he also tell us the cost of the inquiry so far and give us an assurance that this marks a permanent end to the expensive public inquiry process of dealing with the past, which has done nothing to heal wounds but has filled the wallets of lawyers?
I thank the hon. Gentleman for his support. This is not an inquiry—it is a review—and I appointed Sir Desmond only this morning. To repeat, we estimate the cost to be £1.5 million. I entirely endorse the hon. Gentleman’s opinion that we need to move on. Let me pick up on an earlier comment. A few weeks ago, I was in Enniskillen, where I met about 100 young people who were asked their three priorities. Not one of them mentioned the past. I think there is a generational issue here. For those affected—the 3,268 people and any of their relatives and for the Finucane family—these events are absolutely, shatteringly appalling. Their whole adult lives have been dominated by them and we have to recognise that, but there is a new generation coming through and we have to think about them. That is why we have to resolve these outstanding issues and move on.
(13 years, 5 months ago)
Commons ChamberI am delighted to report that the consultation, which ends on Friday, has received the overwhelming endorsement of all five political parties. The leaders in the Executive came to Kelvatek for the launch of that very successful consultation. My right hon. Friends the Prime Minister and the Chancellor of the Exchequer have been to Northern Ireland to see what is happening for themselves—as has my hon. Friend the Exchequer Secretary, who is going again tomorrow—and we will respond in the autumn.
Does the Secretary of State agree that if the Northern Ireland economy is to be helped through the devolution of corporation tax, that must come at a fair, reasonable and acceptable price rather than a price that is detrimental to economic growth?
As the hon. Gentleman knows, the Treasury document makes it clear that every 2.5% reduction in corporation tax requires a £60 million to £90 million reduction in the block grant. That constitutes 0.5% of the block grant, which many economists and businesses consider to be a very modest investment.
(13 years, 7 months ago)
Commons ChamberOrder. There are far too many noisy private conversations taking place in the Chamber. The House must hear Mr Sammy Wilson.
Recently the Irish Republic abolished air passenger duty, which has put at risk cross-Atlantic flights from Northern Ireland and had an impact on the tourist and investment strategy of the Executive. Ironically, that was done as a result of loans facilitated by the UK Government. Will the Secretary of State ensure that in the renegotiation of those loans or any further loans, conditions are attached that stop the Irish Republic gaining such competitive advantage?
I congratulate the hon. Gentleman on his re-election, and re-election to his Ministry. He is right that maintaining good, cheap and quick transport links between Northern Ireland and the rest of the world is vital. I have discussed APD with Treasury colleagues. A consultation is going on and I would like to meet the hon. Gentleman to discuss how we work together on the matter. In meetings with the Government in Dublin, I will also raise the issue.
(13 years, 9 months ago)
Commons ChamberWe have the Ulster fry, with which we can celebrate in numerous splendid establishments in Northern Ireland. I think the message is that we have stabilised the economy. We have moved out of the danger zone that we used to inhabit after inheriting the mess from the last Government, and today we can celebrate moving forward with a constructive Budget and specific measures to help small businesses in Northern Ireland.
I hope that the Budget sizzles but does not burn the economy.
Does the Secretary of State believe that a corporation tax change for Northern Ireland which also imposes a huge financial burden on public expenditure is likely to promote the competitiveness to which he has referred? Will he ensure that if corporation tax is devolved, it is devolved at a fair rate and in a way that does not make it—
Order. I should be grateful for a reply from the Secretary of State.