Northern Ireland Budget (No. 2) Bill

Paul Girvan Excerpts

2nd reading: House of Commons
Monday 9th July 2018 Commons Chamber

[Karen Bradley]

For clarification, the report I am referring to is precisely the one presented to the Prime Minister by the right hon. Gentleman and the leader of the Democratic Unionist party. We have received it and are considering it across Government, as we rightly should in that situation.

This Bill seeks to put the budget position I set out in March on a legal footing. It does not direct the NICS Departments on how to use these allocations. In the absence of an Executive, it remains for Northern Ireland Departments to implement their budget positions. How Northern Ireland Departments will allocate their budgets is set out in the detailed NI main estimates Command Paper. Passing this budget Bill does not remove the pressing need to have locally accountable political leaders in place to take the fundamental decisions that will secure a more sustainable future for the people of Northern Ireland.

I will now turn to the Bill itself. The Bill authorises Northern Ireland Departments and certain other bodies to incur expenditure of up to £8.9 billion and use resources totalling up to £9.9 billion for the financial year ending on 31 March 2019. While this is a technical budget Bill, I do not dismiss the constitutional significance of Parliament having to deliver this for Northern Ireland. I therefore draw Members’ attention to two important issues that do not form a part of the Bill expressly, but will be of interest to Parliament as we debate the Bill. First, as I highlighted in my March statement, this budget includes a further £410 million of UK Government funding that flows from the confidence and supply agreement. That is in addition to the £20 million already released in 2017-18 to help to address immediate pressures in health and education.

[Paul Girvan (South Antrim) (DUP)]

On the back of the court judgment that was reinforced last week, which has made it virtually impossible for NI civil servants and permanent secretaries to move forward and even to spend the money that they will have, we fear that the confidence and supply money will not be allocated or used correctly if we cannot get decisions pushed through. The only people who can do it are this Government here, because there is no Executive in Northern Ireland to deal with it.

[Karen Bradley]

As I made clear in my earlier remarks, we are very aware of the Buick judgment and are considering that decision. In respect of specific items of spending allocated from the confidence and supply money, we are looking carefully to ensure that if ministerial decisions are required, we know what decisions are required and how we would go about taking them. To be clear, there is no difficulty in spending the money that has been allocated so far. As and when there becomes a difficulty, we will of course be ready to take actions as necessary.

--- Later in debate ---

[Sammy Wilson]

It comes back to the point I was making about the allocation of the budget and the way in which decisions are made. First, decisions are based on historical decisions made by the Assembly. Secondly, unfortunately, I have to say—this is why the current system is not acceptable and has to be changed—that when allocations are made by civil servants, we cannot be sure that the finance available will always go to what the public might want to prioritise, because bureaucrats see different priorities. For example, I had a long discussion with the permanent secretary in the Department of Education when we found out that some of the additional money that was available for schools and was meant to go to frontline schooling actually went to finance the deficit of the Education Authority. By the way, after the amalgamation of five education and library boards, that authority was still spending as much on administration as the five boards had spent, even though the idea was that one authority would lead to rationalisation and therefore cut costs.

When civil servants are making these decisions, they will often have different priorities, because they see things from the point of view of administration and bureaucracy, and sometimes that will be more important to them than what politicians would see as the priorities. Politicians are being confronted on a day-to-day basis by parents with youngsters with special needs, teachers who are teaching bigger classes, and headmasters who are having to say to parents, “We need you to provide extra money for books, paper and everything else.” Therefore politicians will often have different priorities.

But here is the point: in the absence of devolution, we do not have people in place who are perhaps tuned into those things as priorities. That is one of the disservices that Sinn Féin has done to the people of Northern Ireland. In its pursuit of its ideological goal involving the Irish language, it is prepared to see bad budgetary or spending decisions, or decisions that do not reflect the priorities of the public.

[Paul Girvan]

The common funding package used for education has shown up glaring inequalities. There are primary schools in my area that are allocated £2,400 per pupil, yet there will be another sector of education that receives up to £15,000 per pupil. This inequality should not exist. I would have no issue with such policy decisions if we had an Assembly in place, but without an Assembly in place to make decisions, we cannot make those changes.

[Sammy Wilson]

This goes back to my point about the Irish language. Those inequalities often exist because of the preference given under the Good Friday agreement to Irish language legislation, which has consequences in terms of small Irish language schools. Some secondary schools have opened with as few as 14 pupils, which is very costly and has led to the kind of result that my hon. Friend raises. That cannot be changed by a civil servant. That is a political decision, and that is why we need an Assembly up and running in which such decisions can be made, meaning that we can look at funding inequalities and decide whether we should change the priorities.

What is important is that we have a means by which the budget can be spent. The Secretary of State said that there is no difficulty with allocation, but there is a difficulty, as I have explained, with accountability, and the issue with the Department of Education has already been raised by two Members. Different Departments have reacted in different ways, however, and I am pleased that the Department of Health has allocated the additional money it obtained as a result of the confidence and supply arrangement to frontline services. Thousands of people across Northern Ireland will benefit from the allocation of that money to reduce waiting lists for elective surgery. Some people were facing two-year waiting lists, but will now find their waiting time reduced. The results can therefore depend on how Departments react.

Although the Secretary of State has said there is no difficulty in allocating the money, there is a difficulty in accountability, and I take issue with her on that. I have had conversations with permanent secretaries, and difficulties are emerging in the allocation of spending. For example, the permanent secretary in the Department for Infrastructure told me recently that he would have difficulty making a decision about the York Street interchange, for which money has been allocated in the infrastructure budget. He argued that he would not be able to make a decision on that. We have already seen the difficulties over getting the broadband money spent in Northern Ireland, and we know that there are decisions to be made on health reforms. If the health budget is going to be sustainable in the long run, health reform is required, but in order to spend some of the money in the budget on that reform, a change in the nature of some hospitals will be required, including the movement of some services and the concentration of services in other hospitals. According to the courts, those decisions cannot be made by civil servants; they have to be made by Ministers.

The same applies to the school estate. One way of getting more money into the classrooms is through the rationalisation of schools. We have additional school places in Northern Ireland, but in some areas there is a shortage of school places and in others there is a surplus. That requires decisions to be made about school closures and about opening new schools but, again, those decisions need to be made by politicians. I think the Secretary of State is wrong when she says that we do not have any difficulty when it comes to allocation. We are heading towards that difficulty now.

At the other end of the spectrum, I am already in discussions with officials in certain Departments and someone has already mentioned the number of assistant chief constables who are on temporary contracts. They cannot be given permanent contracts because no one is there to make that decision. Applications for a whole range of disabled parking bays are queuing up for a decision, but there is no one there to make those decisions. That might not be an important issue in the global sense, but it is important for people with mobility problems who cannot park their car outside their door. Then there is the issue of school minibuses. Directives have been issued in Northern Ireland to say that teachers need to have a public service vehicle licence to drive those minibuses, even though teachers elsewhere do not have to have them. Many schools have had to give up providing sporting and other after-school activities. It requires a Minister to make decisions on those issues as well. I could go on.