Northern Ireland Budget (Anticipation and Adjustments) Bill

Sammy Wilson Excerpts

2nd reading: House of Commons & 3rd reading: House of Commons
Tuesday 20th March 2018 Commons Chamber

[Sir Jeffrey M. Donaldson]

May I assure the hon. Lady that the Belfast city region deal is going forward? It is being led by a consortium of local councils—Belfast City Council, Lisburn and Castlereagh Council, Antrim and Newtownabbey Council, and some others—

[Sammy Wilson]

Mid and East Antrim.

[Sir Jeffrey M. Donaldson]

And, of course, Mid and East Antrim. The absence of a devolved Government is therefore in no way inhibiting progress on the city deal, which is directly between central Government and local government in Northern Ireland.

--- Later in debate ---

[Sammy Wilson]

(East Antrim) (DUP): Let me start by making it clear that this is a technical debate, although the misconceptions that we have heard from some speakers in the Chamber today are not uncommon. As my right hon. Friend the Member for Belfast North (Nigel Dodds) and I will remember, from when we were in the Northern Ireland Assembly and from our work at the Department of Finance, this budget debate very often degenerated into people coming forward with all the things they wanted to spend money on, when in fact it was nothing to do with setting the budget.

The shadow Secretary of State fell into that misconception. I do not want to go through all his mistakes. He talked about this being a pretty poor way of dealing with the budget, yet we are not actually dealing with the budget; this would have been an essential step even had it been in the Northern Ireland Assembly. He also talked about the general headings in the Bill and how they had not changed. As was pointed out to him, unless we change the remit of a Department, we would not change those headings of expenditure—although there are significant points that the Secretary of State will need to address in future.

This debate is really about, first, how Departments spent their money last year. As the figures show, some spent more than was originally allocated and some spent significantly less. For example, the Department for the Executive spent more than a third less than it was originally allocated, although I note that this year it will be allocated the same amount that it was given last year, even though it underspent by a third. Maybe the Secretary of State can tell us why that decision was made, when the underspend was so high. This debate looks back at the past, at what was allocated, what was spent and what additional money had to be given to some Departments—for example, health and education. Where did that money come from? It came from some of the Departments that underspent. That additional expenditure—or that reduction in expenditure—has to be authorised, which is what this Bill does.

This debate also looks forward, because a budget has been set for Northern Ireland—the Secretary of State did that a couple of weeks ago. Each Department knows its expenditure limits for the next year, but until a budget Bill goes through, which will take some time, Departments have to have the legal authority to spend. That is the reason why 45% of the budget is allocated in this Bill. Departments can spend with confidence, because they know that the money is available to them, and they know the limits within which they have to spend it.

It is important that we understand what we are actually debating today. This is not about, “Well, you should have given more money to the Department of Education” or “The Department of Education should be spending money on this” or “The historical enquiries team should have more money allocated to them.” The Members who raised those issues have illustrated an important point, which the Secretary of State needs to address: simply giving Departments information about the money they will have available to them next year does not give them the ability to spend that money, because there are some things civil servants will need direction about.

The Secretary of State has taken the first step—namely, setting the departmental spending limit, giving us the budget statement and now bringing through this Bill authorising last year’s expenditure, which is historical, and giving some money to start off next year—but the big, important political question is when, in the absence of the Assembly, she will give permanent secretaries more power or have Ministers take responsibility for spending the money that is allocated.

I could bore the House with that this afternoon, but let me take just one example: the Department for the Economy, which will get roughly £1 billion next year. Some of that will be spent on air access. If we want to authorise new routes, that will require a ministerial decision—no civil servant is going to do that.

Another thing that is listed is “development including regulatory reform” and “mineral and petroleum licensing”. We are sitting on one of the most lucrative goldmines not just in Europe but in the world. There are issues around that, but those will not be resolved by civil servants. The Exchequer will be able to get vast amounts of revenue from that development. There are hundreds of jobs in the west of the Province, where rural employment is difficult to obtain. However, in terms of making decisions about that, it is not enough just to say to the Department for the Economy, “There is £1 billion.” Decisions have to be made. Direction has to be given about the development of regulations and about decisions where controversies are going to arise.

Another issue is assistance to the gas and electricity industries, which is particularly relevant in my constituency. Indeed, the Northern Ireland Affairs Committee looked at the issue recently. As a result of the auction, Kilroot power station is likely to close. That major coal power station supplies, on occasion, 45% of the power to Northern Ireland. A decision has to be made, because the regulator wants the station kept open for three years, but there is no guarantee that it will sell 1 kW of electricity. Quite rightly, the owners are saying, “We are not going to keep it open for three years if we are not guaranteed any sales.” A decision is going to have to be made by a Minister—it is that important. What do we do?

There is also the issue of investment in tele- communications infrastructure. This is not included in the Bill, but £150 million has been allocated for broadband infrastructure in Northern Ireland. However, again, the policy decisions required to spend that money will require ministerial direction.

On Tourism Ireland, we provide 60% or 40% of the budget for that cross-border body. Yet, if someone goes into the international airport, what is that body advertising? Is it advertising and promoting tourism in Northern Ireland? Not a bit of it. It is advertising tourism in the Irish Republic. There needs to be a ministerial decision: do we continue to spend such an amount of money on a cross-border body such as that, when it is actually to the detriment of Northern Ireland?

[Ian Paisley]

Is my right hon. Friend saying that the Secretary of State should make those ministerial decisions or that she should appoint other Ministers under her from here to make them?

[Sammy Wilson]

I am just picking at random from one Department, and I could do the same with every other Department. When it comes to spending the money, the Secretary of State has two options, or a combination of both. It can either be made clear to civil servants that they have the power to make decisions—I do not think that that is a particularly good way of doing things—or there is a mechanism whereby decisions about the spending of the money can be made politically, and that will require intervention. Otherwise, we will find that Departments receive the money and continue to spend it as they are doing at present, without any policy development and without considering the changes that have occurred in Northern Ireland.

[Lady Hermon]

There are not two options, but three. The third option, and the one that we all want to see, is for the DUP to get back into talks with Sinn Féin to establish the Executive and the Assembly. What exactly is holding up the DUP getting back into those talks?

[Sammy Wilson]

That is actually where I was getting to. Unfortunately, the decisions that we have had to date—a budget statement two weeks ago, the Northern Ireland Budget (Anticipation and Adjustments) Bill today, and a full budget Bill probably in June—are not the inevitable consequence of reluctance from the DUP to do the work that is required. The very next morning after election day last year, we were saying, “Let’s get back into Stormont, and let’s do these things.” We did not lay down any conditions, but Sinn Féin laid down conditions that fell nothing short of blackmail.

Sinn Féin made demands for things in the talks that they knew they would not have got through the Assembly. Even when it came to the Irish language, they could never have persuaded the other parties, some of which have said they are sympathetic to some movement on the Irish language, to give them the kind of Irish language Bill that they wanted. So, what did Sinn Féin do? They made the decision not to go back into the Assembly until they had been given an assurance that there will be delivered, as a price, some things that they could never have negotiated, debated, argued for or persuaded anybody to give them had they been using the Assembly mechanism. The hon. Member for North Down (Lady Hermon) continually tries to share the blame, but let me make it clear that we are having this debate today not due to any reluctance on behalf of my party; it is because we will not give in to the kind of blackmail that we have experienced from Sinn Féin.

Sinn Féin make things even more difficult, because even if someone was daft enough to give them what they wanted, they create such a toxic atmosphere in Northern Ireland that they would be pilloried for it. For example, an MP, who was elected to this House but did not attend, was seen dancing around a garage at midnight, mocking the victims of IRA terrorism—people who were taken out of a minibus on their way home and gunned down—and then they say, “We want to sit down and talk about the way forward and about respect.” When the former Finance Minister does the same, it is impossible to reach an agreement that would get us back into the Assembly.

We welcome the fact that the Secretary of State has acted, and she has not actually been tardy, because had this Bill been presented to the Assembly, it would have been presented around this time of the year anyway. Some poor Finance Minister in the Assembly would have been standing up and enduring—I used that word deliberately—a six-hour debate about what should be in the Budget, and they would have been gnashing their teeth and continually reminding the Speaker, “This is not what the debate should be about,” and MLAs would simply have ignored him or her and continued to talk about it anyway. The Minister has not been tardy with the timing. If the Bill had been brought forward earlier, we would not really have known by how much Departments would have been underspent or overspent for the year. This is as close to the end of the year as we can get. When it gets to June, the final accounts will be made available, so we will know that if changes and adjustments had been made in the last couple of weeks in the month, they can be reflected in the figures that are given.

[Lady Hermon]

I am grateful to the right hon. Gentleman for allowing me to intervene again. He has painted a very bleak picture, sadly, of the prospects for the restoration of a devolved Assembly and an Executive this side of the summer. That being the case, would he confirm on the record for the victims of historical institutional abuse that, should we have no Assembly and Executive by the summer, it will be in order for the Secretary of State to implement the Hart proposals through legislation here at Westminster? The victims are elderly and infirm and many are not in good health. It is intolerable that they should be kept like this, uncertain about their future and compensation.

[Sammy Wilson]

That will be entirely a matter for the Secretary of State, but as has been pointed out regularly during the debate, one of her considerations when coming to that decision ought to be whether some of the institutions that at least turned a blind eye to the abuse should also be held culpable and have to make some contribution towards compensation. It should not fall totally on the public purse, but the Secretary of State would have to make that decision. Our view, if we were ever consulted on it, would be that yes, there is a role for the state, but there is also a role for the institutions that at least turned a blind eye to some of the terrible abuse that went on and therefore allowed so many victims to experience the terrible things that happened to them.

In conclusion, I welcome the Bill and I think Departments will welcome it, but I warn the Secretary of State that it is but a first step. It is one thing to allocate money to Departments, but it is another to ensure that Departments and the civil servants in them have the guidance, direction and authority to spend the money.

[Nigel Dodds (Belfast North) (DUP)]

As always, it is a pleasure to follow my right hon. Friend the Member for East Antrim (Sammy Wilson), who spoke with great authority and eloquence. Of course, as he said, he speaks with authority as a former Minister for Finance in Northern Ireland. He and I both have experience of serving in that office in the Northern Ireland Executive, so I totally empathise with his frustration when it comes to replying to some of these kinds of debates. I well remember civil servants preparing a whole host of possible answers to questions that might arise in such a debate. After a year or two of experience, I remember being able to tell them that they could discard all their preparations, because the same issues would arise that had arisen in every previous debate of this type—the issues would be totally irrelevant to the debate, so they should just get on and prepare the press release. Thankfully, there has not been as much of that in this debate so far, and I think my right hon. Friend set out very clearly what the Bill does.

I too welcome the fact that the Secretary of State has brought the Bill to the House today. It is very timely; it is the start of decision making for Northern Ireland, ending the drift, and is an important milestone in that regard. I fully empathise with the point that the hon. Member for Lewes (Maria Caulfield) made earlier about the empty Benches. I suppose in one way that is actually quite a good sign, in that it seems that taking decisions at Westminster is not that controversial after all. At the end of the day, there seems to be a broad consensus. Nobody I have heard railing about how terrible it would all be is actually even here to make those points. That is a very significant development.

The hon. Lady rightly alluded to those who speak so much about Northern Ireland—about their concern for the economy and the future and about having no hard border—but who, when it comes to the nitty-gritty of financial management and decision making for Northern Ireland, are not here. These are people who speak a lot about Northern Ireland in terms of Brexit but who never show any interest at any other time. It raises questions in our minds about the extent to which Northern Ireland—the Belfast agreement, the peace process, our political situation—is being used by some people to thwart Brexit or to shape a Brexit they would like for the whole of the UK. That is what is actually going on. I therefore commend Members on both sides of the House who are here and making a contribution today on this important matter.

I reiterate what my right hon. Friend the Member for East Antrim said about how we do not wish to be in this situation. We would far rather these matters were decided in the Northern Ireland Assembly at Stormont. Indeed, it is ironic that in late December 2016, when the then Finance Minister, a Sinn Féin Member, had the ability to bring forward measures in the budget, he refused consistently to do so—refused even to bring matters to the Northern Ireland Executive—in the full and certain knowledge that Sinn Féin was going to crash the institutions early in January over matters totally extraneous to the programme for government or anything it had previously raised in discussions with us.

[Sammy Wilson]

Does my right hon. Friend accept that had that Member, Máirtín Ó Muilleoir, still been Finance Minister when this situation arose, he would probably have breathed a sigh of relief, because he had not the courage to take the political decisions to bring forward a budget—the only Finance Minister never to do so—but would rather whinge and gurn and point the finger at the Conservative party?

[Nigel Dodds]

My right hon. Friend makes an interesting point. A very good illustration that proves his point concerns welfare reform. We were faced with a difficult situation in Northern Ireland following welfare cuts and changes to welfare benefits. The then Minister, Nelson McCausland, negotiated mitigations that helped the situation in Northern Ireland, but generally it presented a difficult position for all the parties in Northern Ireland. The parties, including ours, took the hard decisions and brought them to the Assembly, but Sinn Féin refused to go along with it, and because of the make-up of the Assembly and the veto principle, it was able to block those decisions, and the institutions almost collapsed as a result. We had to have the Stormont House and fresh start negotiations to prevent the collapse of the Assembly.

As my right hon. Friend points out, Sinn Féin, in particular, refuses to take hard decisions and work within the parameters of a devolved legislature that has to set budgets and work within the block grant. That is part of the problem and one of the reasons we are now in this situation. Our party stands ready, as it did in December 2016 and at the time of the elections in March 2017, and as it has done every day since, to get back into government immediately, without any preconditions or red lines, to tackle the issues that matter to the people of Northern Ireland.

In any survey or poll conducted right across both communities, the issues that matter to people are those that matter to people everywhere: health spending, education, infrastructure, housing, the environment. These are the things people care about, and they want their politicians to be delivering on and dealing with them—and so do we—which is why we are mystified, and why most people in Northern Ireland are bewildered, that Sinn Féin put narrow partisan political issues above dealing with these issues. When we proposed dealing with issues of concern to Sinn Féin in parallel with getting the institutions up and running and dealing with the big issues affecting all of us, and even suggested time limiting the Assembly to ensure there was no bad faith on our part, it was rejected out of hand.

Let us be very clear: devolution is our first option and our clear preference. We are not the barriers to devolution in Northern Ireland; nor, I believe, are other smaller parties such as the Ulster Unionists, the Social Democratic and Labour party and the Alliance party. It is very clear what is blocking devolution.

There is another point that we make over and over again, and it was strongly emphasised by the Chairman of the Select Committee, the hon. Member for South West Wiltshire (Dr Murrison), and he was absolutely right. Without prejudice to efforts to get devolution up and running, we do need decisions to be made. The same point was made by the hon. Member for Lewes.

It is the fact that there are no Ministers in place that is causing drift and putting Northern Ireland into limbo. That is why some decisions are not being made in the Department for the Economy, to which my right hon. Friend the Member for East Antrim referred. The problem is not the absence of an Executive per se, but the absence of Ministers. As the hon. Member for South West Wiltshire said, the situation cannot continue for much longer. The various decisions that need to be made by Ministers are basically about allocation and prioritisation. Civil servants cannot make those decisions, because they would just be making personal decisions. They are not accountable. We need to ensure that something is done, and that it is done in a relatively short space of time.