Northern Ireland Budget (Anticipation and Adjustments) (No. 2) Bill

Paul Masterton Excerpts

2nd reading: House of Commons
Tuesday 5th March 2019 Commons Chamber

[Dr Andrew Murrison (South West Wiltshire) (Con)]

I welcome the Secretary of State’s hard work over the past several months in trying to resolve the impasse at Stormont. She has worked tirelessly. If I may be ever so slightly critical of the hon. Member for Rochdale (Tony Lloyd), I think he is being a little harsh—uncharacteristically —about the efforts of the Government to restart this process and about the Prime Minister’s efforts. I do not particularly appreciate shuttle diplomacy of the sort we have seen in the past—there are other more effective ways of achieving the same end—but he has to accept the extraordinary difficulty that currently pertains in Northern Ireland and the intransigence of some of the actors therein.

Like the Secretary of State, I hope that we restore the Executive in the near future—more in hope than expectation—and I understand why she is behaving as she is in trying to keep the ship on an even keel while trying not to interfere in matters that are properly devolved. It is a dilemma she faces on a daily basis. She well knows that the longer this goes on, the more the people of Northern Ireland suffer and the more their lived experience deteriorates. In that context, I congratulate once again the Northern Ireland civil service and David Sterling. It is important to do that. This is unprecedented, and Northern Ireland should be very proud of its civil service. I also thank and commend the work of the Northern Ireland Office under the strong leadership of Sir Jonathan Stephens. It is often forgotten in this mix, but it has done an excellent job in trying to keep things going.

Clearly, I welcome the Bill, which is largely of a technical nature, but I share the concerns expressed about scrutiny. I am not entirely clear that this measure should be dealt with as an urgent matter, as referred to in paragraph 27 of the guidance notes. It could have been far more elective than that. Scrutiny is important. I accept that the Secretary of State is avoiding at all costs making decisions on important matters relating to Northern Ireland that are properly devolved, but this place has to assume some responsibility for scrutiny of these important matters, and I am not sure we are doing justice to that process.

[Paul Masterton (East Renfrewshire) (Con)]

My hon. Friend says the Bill is of a technical nature, and I agree in some respects, but ultimately it authorises the spending of billions of pounds in Northern Ireland. Can it really be called merely technical when it is so substantive in nature? On scrutiny, despite all the money going to Northern Ireland, there has been very little progress in getting it directed in a way that meets the needs of people in Northern Ireland since the priorities were first set. If we are to be in this situation again in 12 months, we will need to reflect on how we can do this better.

[Dr Murrison]

My hon. Friend makes a good point. We are in uncharted waters. It is difficult to hold to account Ministers who are not making decisions. It is not clear where accountability lies in this process. I hesitate to say we are making it up as we go along—clearly that would be unfair—but it is difficult to know precisely whom to hold to account, which is the job of this place.

Of course we have organisations such as the Northern Ireland Audit Office, which does its best to ensure that public funds are being disbursed in a reasonable manner, and there are other mechanisms for Members to attempt to shed light on the position and hold the Executive to account. Ultimately that process may end up in the courts through judicial review, but the Secretary of State is very keen for that not to happen, hence the guidance that she issued recently. However, I entirely agree with my hon. Friend the Member for East Renfrewshire (Paul Masterton) that the whole thing is unsatisfactory. I suspect that if the Secretary of State were answering his point, she would say that the solution is very straightforward, and it is the restoration of the Executive.

I must say that I worry about the state of Northern Ireland and where it is going, given the lack of Ministers. The public are often rather cynical about us politicians, but I think this process has shown that Ministers have utility in improving people’s lives. David Sterling himself has referred to “slow decay and stagnation” in Northern Ireland. Those are strong words, and I take them very seriously: I think he is absolutely right. Very few of us who have anything to do with Northern Ireland will not be impressed by the sense there that people are being let down by their political class, and that is an indictment of us all. I will not pin the blame on any one party or set of politicians, but it is incumbent on us all to ensure that proper governance is restored to Northern Ireland at the earliest available opportunity.

I accept the arguments for the uplift in the vote on account for the financial year 2019-20, because that strikes me as a pragmatic way ahead, but it is quite unusual. Of course I accept everything that my right hon. Friend the Secretary of State has to say—she is a person of great honour and integrity—but, as my hon. Friend the Member for East Renfrewshire pointed out, surely the job of this place is ultimately to scrutinise, and this 70% uplift is somewhat unusual. I therefore particularly regret the lack of opportunity that we are having—and, if I may say so, my Select Committee is having—to delve into why the uplift is needed. It may be expedient, but expediency is not necessarily sufficient.

I also accept that the Bill does not imply any particular decisions, political or otherwise, except, of course the so-called flagship projects to which the Secretary of State referred in her written ministerial statement on 28 February, which include the A6, the York street interchange and the mother and children’s hospital. Those projects are unobjectionable and I believe that everyone in Northern Ireland wants to see them, so I think that the Secretary of State is on very safe ground. Nevertheless, they are big infrastructure projects, which, in the normal course of things, would be subject to intense scrutiny one way or the other. That scrutiny clearly cannot come from Stormont, as Stormont is not working, but it falls to someone, and it really falls to us, because we are the default position. I am not clear in my mind that those big projects, and the planned expenditure on them, are being given the scrutiny that they deserve.

At the risk of being accused of being a pedant, I should like the Minister, when he sums up the debate, to clarify what the £4 million allocated to transformation is being spent on. I alluded to that earlier in a brief intervention. “Transformation” is very politically loaded, because it implies that something is being transformed into something else. It is important to know what is in the minds of those who are doing the transforming. I know that £4 million is not a great deal of money, but it would be useful to know what it is being spent on, because it implies a particular direction in terms of the outcomes that are being sought. I understand from what has been said previously that it is intended to make public services more sustainable. “Sustainable” is one of those words that sound innocuous, but it does imply change, and when change impacts on public services, it becomes politically contentious and, again, politically loaded. We therefore need to be told in a reasonable amount of detail how that relatively small sum is being disbursed.

I welcome the real-terms increase for health and education. My Select Committee has taken the view that it should get involved in both those areas. They are both areas that in the normal way of things we would be firmly told to set aside since they are devolved matters, but nobody else is looking at these particularly important areas of public policy at the moment and we have taken that as licence to exert some level of scrutiny. It has been very clear to us that not only is transformation needed in both areas, but that we need to look at making root-and-branch changes particularly in relation to footprint, to ensure that public money is spent properly and outcomes are improved.

In healthcare in particular, outcomes in Northern Ireland are really not good at all. The people of Northern Ireland deserve much better. We have heard in our Committee about issues to do with education, and I think we will be drawn to conclude that the footprint is part of the problem. All these things in all our constituencies up and down the country would ordinarily be matters of acute political interest in which politicians would be heavily involved, and there would be public meetings and all manner of things. The hon. Member for Rochdale who speaks for the Opposition was absolutely right to draw that comparison in his opening remarks, because were this to happen in my constituency I know I would be attending public meetings and doing all sorts of things that simply do not happen in Northern Ireland because of the absence of normal politics there at the moment. What is important however is that, wherever we can, we make sure we have some level of scrutiny, and that is why in its small way my Select Committee has taken upon itself investigations into health and education, and will be reporting very shortly.

I wonder whether the Secretary of State, or the Minister who replies, can update the House on what the £130 million transferred from capital for the next financial year to deal with public service resource pressures is being spent on. It has been referred to already and is a substantial sum of money. We really do need some level of granularity to ensure that money is best spent on areas where it will have the biggest impact. It is of concern, obviously, when money is transferred from capital to revenue, because it implies that there will be a backlog in due course of capital spend not being done at the moment that will have to be made good in the fullness of time.

Will the Minister say why the Executive Office vote is being uplifted by 4.4%? On the face of it that seems remarkable, and, knowing how eager the hon. Member for North Down (Lady Hermon) is to scrutinise these areas, she might have it in mind to press Ministers further on this when she speaks. It is remarkable that when we do not have an Executive in place, the Executive Office should be having an uplift of 4.4%. I would have thought the reverse would be the case.

--- Later in debate ---

[Karin Smyth (Bristol South) (Lab)]

We have heard a wide range of speeches on the Bill, but they have a similar theme. Before entering this House, I was a manager in the NHS in England. I have been a school governor and a non-executive director. I have served on finance committees, audit committees, and, since joining this place, I have been a member of the Public Accounts Committee. Like many people in this place, I take seriously the issue of spending taxpayers’ money. I believe it warrants scrutiny, analysis, challenge and, critically, accountability. As has been noted in all the speeches we have heard this afternoon, we should not be discussing the Bill, but, as we are, we should be doing it properly, and we cannot.

[Paul Masterton]

The hon. Lady mentions her role on the Public Accounts Committee. Does she think that, for as long as Stormont continues to not sit, there would be any merit in having the reports of the Northern Ireland Audit Office reviewed by the Public Accounts Committee?

[Karin Smyth]

I understand that the reports of the Comptroller and Auditor General for Northern Ireland are currently not being scrutinised in the way that we would expect here. If the Public Accounts Committee was to undertake that role, it would be a very serious change to constitutional arrangements. The actuality discussed by the Chair of Northern Ireland Affairs Committee and others is that there needs to be some sort of process. I am not sure whether this is the right process, but I agree that there needs to be some sort of process for the reports already coming out of Northern Ireland that are highlighting some serious problems.

I make no judgment about the work of the Northern Ireland Office, the civil servants in Northern Ireland and the many public servants trying to continue to deliver services, but the lack of scrutiny and analysis of that money, and our incapacity to challenge, means that that huge area of spend, involving UK taxpayers’ money, is receiving less attention than school budgets get when we audit them. We know—this has been reinforced—that there are huge problems under the headings of this debate. As my hon. Friend the Member for Rochdale (Tony Lloyd) said, the Opposition want the Department to make progress on the Hart inquiry, victims’ and survivors’ pensions, and the medical school at Ulster University. I recently visited the team behind the project to progress the medical school in Derry/Londonderry. The scale of the work to date, and their ambition for their city and region, is to be commended, and the Secretary of State must find a way to support them. We have the ridiculous situation in which civil servants can support the business case but not agree the funding, because that is beyond their powers and would be considered a reallocation.

Why is a medical school important? The Government are proud of their announcement of new medical schools in England. The areas chosen need those schools because we need the recruits. As the chief executive of Health Education England said when the announcement was made—MPs in those areas know this—

“studies show that doctors tend to stay in the areas where they train so it means more doctors for the region to deliver high-quality care.”

In Northern Ireland, the locum bill is more than £80 million per annum and rising—an increase, according to the Bengoa report, of more than 78% in five years. It is clear that Northern Ireland needs to be training more of its own doctors and other clinical staff. It also needs to pay them properly, but the rates of pay of those staff are falling behind those in the rest of the UK.