Northern Ireland: Political Situation

Owen Smith Excerpts

Monday 3rd July 2017 Commons Chamber

[The Secretary of State for Northern Ireland (James Brokenshire)]

With permission, Mr Speaker, I would like to make a statement about the political situation in Northern Ireland.

As the House will recall, following the resignation of Martin McGuinness, the then Deputy First Minister of Northern Ireland in January, an election took place to the Northern Ireland Assembly on 2 March. Despite intensive discussions in the three weeks following the election, the Northern Ireland parties were unable to reach agreement on the formation of a new Executive. In order to facilitate further discussions between the parties, Parliament passed legislation immediately prior to Dissolution extending the period in which an Executive could be formed until 29 June. Last Thursday—29 June—I made a statement in Belfast setting out that while differences remain between the parties, progress had been made and that it was still possible for a resolution to be achieved. I urged the parties to continue focusing their efforts on this, with the full support of the UK Government and, as appropriate, the Irish Government. In that regard, I want to recognise the contribution of the Irish Foreign Minister, Simon Coveney, and his predecessor, Charlie Flanagan.

In the past few days since the passing of the deadline, some progress has continued to be made, including on the most challenging issues, such as language, culture and identity, but gaps remain between the parties on a defined number of issues. The Government remain committed to working with the parties and the Irish Government to find a way to close these gaps quickly in order to reach an agreement that will pave the way for the restoration of devolved government. The Prime Minister has been actively involved, following on from her meeting with each of the parties, including speaking to Arlene Foster and Michelle O’Neill on Friday night. I continue to believe that a deal remains achievable, and if agreement is reached, I will bring forward legislation to enable an Executive to be formed, possibly as early as this week.

But time is short. It has been six months since a full Executive were in place to represent the people of Northern Ireland. In that time, it has been civil servants, not politicians, who have made decisions on spending. Without political direction, it has not been possible for strategic decisions to be made about priorities in areas such as education and health. This has created pressures that need to be addressed, and it has led to understandable concern and uncertainty among businesses and those relying on public services alike, as well as the community and voluntary sector. This hiatus cannot simply continue for much longer.

There is no doubt that the best outcome is for a new Executive to make those strategic decisions in the interests of all parts of the community in Northern Ireland. It should be for a new Executive to make swift decisions on their budget and make use of the considerable spending power available to them. While engagement between the parties continues and there is prospect of an agreement, it is right that those discussions remain our focus. At the same time, we will not forget our ultimate responsibility as a Government to uphold political stability and good governance in Northern Ireland.

I made a written statement in April that sought to provide clarity for those civil servants charged with allocating cash in Northern Ireland, to assist them in the discharge of their responsibilities. Some £42 million in resources flowing from the spring Budget and budget transfers from the last financial year remain unallocated, and they are intended to provide an incoming Executive with the room to decide how they should best be spent.

If we do not see resolution in the coming days, however, it will become urgent that we reflect further on whether clarity is required for Northern Ireland permanent secretaries about the allocation of those resources. In that situation we would also need to reflect carefully on how we might allocate funding made available to address immediate health and education pressures, as set out in last Monday’s statement on UK Government financial support for Northern Ireland, recognising Northern Ireland’s particular circumstances. If no agreement is reached, legislation in Westminster may then be required to give authority for the expenditure of Northern Ireland Departments through an appropriations Bill.

From my conversations with the head of the Northern Ireland civil service, I know that we have not quite reached that critical point yet. But that point is coming and the lack of a formal budget cannot be sustained indefinitely. Similarly, decisions on capital expenditure and infrastructure and public service reform in key sectors such as the health service cannot be deferred for much longer.

One area on which there is much consensus, however, is the need for greater transparency on political donations. In line with the commitment set out in the Conservative party’s Northern Ireland manifesto at the general election, I can confirm that I intend to propose legislation that will provide for the publication of all donations and loans received by Northern Ireland parties on or after 1 July 2017.

All of that reinforces further the importance of the parties coming together and reaching an agreement. It sets out, too, some of the hard choices we face if uncertainty persists. I am also conscious that, with the deadline now passed, I am under a duty to set a date for a new election. I will continue to keep that duty under review, but it seems unlikely that that would of itself resolve the current political impasse or address the ultimate need for political decision making, however we proceed.

As the Government for the whole United Kingdom, we will always govern in the interests of all those in the United Kingdom. Therefore, if resolution were to prove intractable and an Executive could not be restored, we would of course be ready to do what is needed to provide that political decision making in the best interests of Northern Ireland.

I am clear, however, that the return of inclusive, devolved government by a power-sharing Executive is what would be profoundly in the best interests of Northern Ireland, and that will remain our overriding focus in the crucial days ahead.

The UK Government will continue to govern in the interests of everyone in Northern Ireland by providing political stability and keeping an open and sustained dialogue with the parties and with the Irish Government, in accordance with the well-established three-stranded approach.

I stand ready to do what is necessary to facilitate the quick formation of an Executive once an agreement is reached, and that is where our focus should lie. I commend this statement to the House.

[Owen Smith (Pontypridd) (Lab)]

I thank the Secretary of State for advance sight of his statement and for his welcome efforts to keep me regularly updated on progress in the talks. I know that the Secretary of State, the Irish Foreign Minister, Simon Coveney, and all the parties have been working hard to try to narrow the gap on the outstanding issues, in particular on languages, culture and identity. I welcome the fact that the Secretary of State has not come here today to say that the shutters are coming down on the talks and I admire his sustained—if slightly surprising—optimism that a deal might be done this week.

People in Belfast and across Northern Ireland will have heard his contention that there remains the prospect of a deal. If that is achieved, he will enjoy the Opposition’s full support in putting in place whatever legislation is necessary to enable the Executive to reform and the Assembly to meet. But there will be legitimate frustration among many Northern Ireland citizens that fully six months after the Executive broke down, and little more than a week before the marching season reaches its apogee on 12 July, we remain at this impasse. There will also be some scepticism about the likelihood of his surmounting it in a few short days.

Hard questions must now be asked about what more the Government can do to assist the parties in moving forward. It is encouraging that the Prime Minister picked up the phone on Friday night to the leaders of the DUP and Sinn Fein. But I invite the Secretary of State, in the new spirit of free speech that seems to be abroad in the Conservative party, to agree with me that the Prime Minister could do a bit more. He could tell her to get on a plane to Belfast herself. I am sure that Arlene Foster would not mind lending the Prime Minister her plane for the weekend.

History tells us, on both sides of the House, that the direct involvement of the Prime Minister and the Taoiseach can sometimes help to bridge the divide in Northern Ireland and move things forward. It is a surprise to me that the Prime Minister continues to seem reluctant to take personal responsibility to break the deadlock. In fact, I think many in Northern Ireland would feel that the current Prime Minister has a particular duty to take some personal responsibility and get more involved because it was her decision to call an election in April that lengthened the hiatus and has taken us so close to 12 July, and her reliance on the DUP—a legitimate reliance, given the arithmetic of the House—that is being cited by other interlocutors in the talks as part of the reason for the impasse.

I agree with the Secretary of State that the hiatus simply cannot continue for much longer, but I would like to hear more from him about what he will do to resolve it. If it is not with greater hands on involvement by the Prime Minster and the Taoiseach, as I and others have suggested, does he think there is a role for a new independent—and perhaps international—chair for the talks, with fresh eyes and a new mandate? That too has been an important means of shifting things in the past.

I noted the coded warning that the Secretary of State gave, rightly, that if a way forward cannot be found, he will have to bring forward further budgetary transfers to give extra clarity and certainty to the Northern Ireland civil service. That may well be necessary and, if so, he would again enjoy our support, but I am not sure that it would provide much of a spur to the parties, because they are used to this limbo land after the last six months. I know he agrees with me that it is profoundly unsatisfactory for strategic decisions to be put off and for Northern Ireland to be in the hands of unelected civil servants, no matter how competent and well intentioned they are. An appropriations Bill may prove to be a bigger spur, but some—as the Secretary of State knows—will see that effectively as a return to direct rule. I am sure that that will be a position that he will wish to avoid and I would urge him to take all possible steps to avoid it.

I welcome the decision that the Secretary of State has taken today to legislate for publication of all political loans and donations received by parties in Northern Ireland after 1 July. That is an important step in normalising the politics of Northern Ireland, although it may strike some as ironic in the light of the recent deal with the DUP. Does he intend that the thresholds that will apply to that legislation will be the same as apply to donations and loans in the rest of the UK? Will the same requirement apply that all donors are registered voters in the UK?

Finally, I am sure the Secretary of State agrees that Northern Ireland needs its Assembly and Executive up and running as soon as possible. There is no greater illustration of that than the fact that we are now entering the Brexit negotiations in earnest. Northern Ireland effectively has no voice at that negotiating table; certainly not one that reflects all the traditions, culture and heritage of Northern Ireland. There is an absolute imperative to get the Executive back on their feet and to restore Northern Ireland’s voice. I am sure he will join me in urging all Members to urge all parties to make sure that that happens as soon as possible.

[James Brokenshire]

I certainly join the hon. Gentleman in underlining that core message. I appreciate and welcome the support he has given to the Government in trying to reach a point where agreement is concluded and we are able to move swiftly in this House. I appreciate the opportunity we have had to discuss these issues over the last few days and I will certainly maintain that dialogue with him.

The hon. Gentleman raises a number of points. He highlights the frustration of many people in Northern Ireland that no deal has been concluded thus far. A theme that I know binds us together is how we can achieve that conclusion, with an inclusive power-sharing Executive of locally elected politicians getting on and making decisions in the best interests of Northern Ireland.

The hon. Gentleman asked about the engagement of the Prime Minister. She has been involved throughout the process. She met all the leaders of the political parties in London and has maintained contact throughout this time. As I indicated, in recent days she has, as she has previously, spoken to the leaders of the two main parties. He will recognise that particular interventions may not necessarily have the desired outcome. From his previous involvement in Northern Ireland he will know of occasions that did not lead to the outcome he wished for at the time, in places such as Leeds Castle, for example. Different solutions and scenarios present themselves in different cases. A defined number of issues remain outstanding and we need to give them our focus and attention, rather than extending out and changing the whole dynamic. We will continue to keep matters under careful review. Resolution is possible if the willingness is there. It is with that urgency that we must approach the days ahead.

There is opportunity here. I spoke about the additional funding that could be available to an incoming Executive to enable them to act and to take strategic decisions. It is profoundly in Northern Ireland’s interest for locally elected politicians to do that.

I will write to the hon. Gentleman and set out further details on transparency issues relating to political donations—I think that is probably the best way to do it—and I will put a letter in the House of Commons Library. I will also introduce legislation spelling that out so that everyone will be able to see the next steps very clearly.