Northern Ireland (Welfare Reform) Bill

Sammy Wilson Excerpts

Monday 23rd November 2015 Commons Chamber

[Sammy Wilson (East Antrim) (DUP)]

First, I welcome the fact that we now have this Bill before the House of Commons. Had the Government listened to us some time ago, we might have saved a year in which we would we have saved the money that is now being returned to the Treasury. More importantly, we would have saved the damage that has been done to devolution. Apart from the costs involved, the stalemate that has arisen from the failure to agree the welfare reform proposals that we thought had been agreed this time last year in the Stormont House agreement has led to a budgetary crisis in the Assembly. During that stalemate, many of the spending proposals could not be undertaken, with a budget that we knew would have been overspent had we gone through to the end of the year. All that has played out badly in Northern Ireland with regard to the credibility of the Assembly.

This agreement, and the fact that we have now removed one of the most toxic issues that was affecting the work of the Assembly, namely welfare reform, is therefore to be welcomed. I am glad that we have now got this issue on to the Floor of the House.

[Lady Hermon]

The hon. Gentleman is a very senior member of his party, and rightly so—he has been in it for an awfully long time. Will he therefore give us some insight into the negotiations which—thank goodness, after all this waiting—managed to persuade Sinn Féin to agree to this deal? What was the turning point? What was the significant agreement with Sinn Féin whereby it agreed to welfare reform? I am intrigued to know what his new leader, or future leader—[Interruption.] I would be delighted, in fact, if there was a new leader, but will he just answer the question instead of speculating about the leadership?

[Sammy Wilson]

If the hon. Lady had thought of the trend that there has been since the DUP became the largest party in Northern Ireland, she could easily have identified the reason why this has happened. We were told that we could not get devolution because Sinn Féin would never divorce itself from violence, and then it did; we were told that we could never get policing and justice devolved because Sinn Féin would never support the police, and then it did; and we were told that we could never get welfare reform through because Sinn Féin was opposed to it, and we faced it down on that. The record of the DUP should not be compared with the record of the Ulster Unionist party when it was the largest party in Northern Ireland, because it rolled over to Sinn Féin whereas we have stared it down on all these issues and succeeded. I cannot get into the mindset of Sinn Féin. All I know is that a year ago it was saying that under no circumstances would it accept Tory diktats on welfare, and now it has asked the Government to bring forward this legislation, to take it through the House of Commons, and to implement the changes.

I welcome that, because our party never accepted that the devolution of welfare was necessary. Given the parity principle, we would always have been caught in a position whereby we either reflected Westminster legislation or paid the cost of it, which, even in terms of different systems, was never going to be sustainable. Now we are where we are, and I am pleased about that, because it removes one of the biggest barriers to making devolution work in Northern Ireland. I hope that we have now laid the foundation for more workable devolution in future, because we are a party that believes in devolution and wants to see it work. I think that the sacrifices we have made indicate that.

Secondly, this measure brings immediate benefit to Northern Ireland. It removes the toxicity that existed around welfare reform, but also enables us now to move on to deal with the issues that need to be dealt with.

The hon. Member for Belfast South (Dr McDonnell) said that one of the reasons he is not happy is that the agreement does not provide for jobs. I want people in my constituency to be off welfare and to have the dignity of work, but the hon. Gentleman said that the deal does nothing to get people into employment. However, it paves the way for corporation tax changes in Northern Ireland, which will be a job creation measure. Half the savings made from fraud and error in welfare can be retained by the Northern Ireland budget. The agreement specifically says that we can deal with training and youth unemployment. A capital financial package will be available for shared education and shared housing, which will create jobs for people in the construction industry. The Northern Ireland Executive will also be able to keep some of the capital receipts from the sale of assets, and they can be ploughed back into the economy.

The hon. Gentleman was, therefore, wrong to say that the Bill does nothing but penalise people on welfare without giving them an alternative. The Executive now have in their hands the means to provide some of the things that he and I are concerned about. I know that he was not making a cheap political point, because he has a record of being concerned about unemployment not just in his own constituency, but right across Northern Ireland. At least this agreement secures the resources by which some of those issues can be addressed.

Thirdly, although we cannot deviate from parity without there being some cost to Northern Ireland, the Executive have taken it upon themselves to look at where we could change some of the welfare issues and put our own imprint on the Northern Ireland welfare system. Over the next few years, £585 million will be devoted to just that. On cuts to the spare room subsidy, for example, we took the view that we did not have the housing structure to allow for the flexibility required in the housing market, so we have put money into exempting people from the benefit reduction that would have incurred. On the changes to rates—or council tax, as it is known in the rest of the United Kingdom—we have put £17 million aside so that low-income families will be supported and not lose out. Money has also been put aside for tax credit changes. The approach has been tailored. The Bill will go through—as has been agreed by the Executive, and asked for by the Assembly—with those flexibilities. It is a good deal, which is one of the reasons we will be pleased to go through the Lobby tonight in support of the Bill passing through this House.

Finally, there are still those who wish to conduct guerrilla warfare against the institutions in Northern Ireland. Some of them do so because they want to score points against other political parties. We have seen an example of that today. Last week, the Social Democratic and Labour party criticised Sinn Féin in the Assembly, saying, “How dare they dilute devolution by asking for this welfare reform Bill to be taken to the House of Commons? The House of Commons should have no say over it, because it’s a devolved issue.” Now that the Bill has come here, however, SDLP Members are complaining because the House of Commons cannot have a say on making changes. That was, of course, a convenient way of beating Sinn Féin.

Others, such as Traditional Unionist Voice, would have liked the Bill to have been delayed, because they hoped the whole deal would unravel as a result. They want to destroy devolution, despite all the benefits it has brought to Northern Ireland. For that reason, it is important that we address the issue urgently. It has taken long enough to strike the deal, and now that it has been struck let us deliver it for the people of Northern Ireland. Tonight the House of Commons can play a role in helping to improve conditions in Northern Ireland by passing this Bill.

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[Danny Kinahan]

I take that on board, but only to a certain point. We were not listened to as much as we wanted, and we were certainly ignored quite a bit at the end as the two main parties took control.

[Sammy Wilson]

Will the hon. Gentleman give way?

[Danny Kinahan]

Not at the moment.

Was it a case of, “Any deal will do,” perhaps to keep the Prime Minister happy or, more importantly, to fit in with the First Minister’s resignation and glorification at his party conference last weekend? That is deeply worrying.

Some five weeks ago I spoke about the Stormont crisis in an effort to show this House that the present Stormont devolved system does not work. The current Government do not work and I intend to show why that is the case. During that debate we highlighted the fact that, out of the £80 million in the social investment fund, only £1 million had been spent. I also showed that shared education, the racial equality strategy, same-sex marriage and many more things were all stalled by the Executive. I also raised the fact that welfare reform could not be agreed, because Sinn Féin had pulled out of the Stormont House discussions after initially agreeing with them. The consequence is that all our Departments are grinding to a halt; no budget was agreed as a result of welfare not being agreed. So, here we are, passing it over to Westminster to do it for us.

I remember it being made very clear in the Stormont Chamber that, in effect, all the Finance Minister had to do was allocate the Barnett formula funds to the various Departments and that she was no more than a glorified accountant. It seems that we cannot even do that. We have had to hand over the responsibility to Westminster so that it can do the allocation for us.

Stormont is a legislative Assembly—its job is to legislate. May I make it absolutely clear that my party—the Ulster Unionist party—has all along been against handing power back to Westminster? Yet here we are, handing back to Westminster the power to legislate. It is very sad that Stormont cannot even do what it was set up to do.

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[Sammy Wilson]

Does the hon. Gentleman accept that one reason why we paid money back was that his party, when it was having its Jeremy Corbyn moment, was prepared to oppose the welfare changes and was therefore responsible for some of those payments? He cannot run away from that and blame it on somebody else; his own party took that stance.

[Danny Kinahan]

We had very good reasons for taking that stance at the time. We can certainly complain because we are where we are today.

We really need help on welfare in Northern Ireland. It pains me to say so, because I do not want to be part of a begging bowl Government. I want to see Northern Ireland thrive. We have the high-tech skills, the best schools and the entrepreneurs, but we also have the unemployed, the disadvantaged and mental health problems that the years of troubles have left us with. As other hon. Members have said, we do not have the jobs and skills base for those at whom the welfare reforms are aimed. We need reskilling and the right manual jobs for this new welfare system to work.

The roll-out of universal credit in Northern Ireland has experienced major delays and other problems while dealing only with the easy cases. On the disability living allowance and personal independence payment, Northern Ireland has a higher proportion of DLA claims for poor mental health than in Great Britain: in 2010, mental health issues were the disabling condition for 23% of all DLA claims in Northern Ireland, whereas the equivalent figure was 12% in Great Britain. When it comes to tax credits, the changes will hurt far too many, and even with the Chancellor’s minimum wage plans, the childcare help and housing plans, 121,000 people will still be left short by just under £1,000 a year, which will affect our economy, our health service and, of course, our mental health numbers. We need to mitigate the tax credit cuts. With Westminster as yet not changing its plans, Stormont will have to pick up the effects of these cuts. That is one reason why this deal is not as good as it could be. As I have said, it is worse than the original Stormont House agreement.

The Bill really shocks me in that it is only agreed by the two main parties. It is almost as though the Government wanted a deal at any cost, but many have felt that we needed a whole new deal—not a Stormont House agreement, but a complete reworking of all post-Belfast agreement deals. We could have done not with a fresh or even a false start, but with a new start to tie up all the loose ends, such as the legacy issues; better government with a proper opposition; proper action not just on speaking rights and finance, but on a change in the committee structure; and a reworking of the petition of concern, but not into the damp squib of what looks like an effectual code.

So much more could have been included in the deal. I wish we had seen it as a way of drawing a line in the sand. I believe today is a sad day for Northern Ireland. We have shown how big a failure our Stormont is in its present hands and how it cannot agree on anything. I want to see Northern Ireland really thrive. It has the skills, and if we could have more action and more decisions, it can get there. I am grateful for what we have got today, but it could have been so much better.

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[Ms Ritchie]

It is interesting to note that, according to research carried out by the Library, 112,500 people in Northern Ireland are in receipt of tax credits and the annual £60 million of tax credit top-ups for the next four years will meet only 40% of what Northern Ireland will lose.

[Sammy Wilson]

I do not mean to cut the hon. Lady off during a flourish of rhetoric, but does she accept that the welfare reform legislation does not include changes to tax credits? Those have been made through other legislation that is totally separate. It is wrong to set up a straw man by indicating that there is a connection between this legislation and tax credits.

[Ms Ritchie]

My understanding is that the British Government, whose representatives are here today, including the Secretary of State, are claiming that that is the situation.

The people of Northern Ireland fought long and hard with political parties and both Governments to secure the democratic political structures. The SDLP wants to see the bedding down of those institutions through political stability; economic prosperity; greater devolution in respect of fiscal flexibilities, broadcasting and telecommunications; and the deepening of the north-south and British-Irish structures that were facilitated by the Good Friday agreement and the Northern Ireland Act 1998. We do not want to see power removed from the Northern Ireland Assembly and the Executive to be given to the Secretary of State and this Chamber. That was not the purpose of the Act that we voted for in 1998, when power was given to the Northern Ireland Assembly and the Executive.

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[Ms Ritchie]

I thank the Minister for that helpful intervention, but it would be much more helpful if he and his colleagues supported our amendments, which would help to clarify matters and to further delineate such measures. Before he winds up the debate, will the Minister reflect on our amendments as we move to the Committee stage?

[Sammy Wilson]

The hon. Lady does at least engage in debate on these issues. We might appreciate her anger against the welfare reform proposals were it not for the dual standards that her party has adopted. She is railing against some of the measures in the Bill. For example, her party opposes the bedroom tax, as she calls it, but it was her own Minister who introduced the removal of the spare room subsidy for people who live in the private sector. On the one hand, she condemns the Government for picking on people in the public sector, but her own Minister introduced it for people in the private sector, where rents are even higher.

[Ms Ritchie]

I well recall that measure being debated and it related solely to the private rented sector.

I regret that the Bill has not been taken in the Assembly, where it rightfully belongs. I hope the Minister will reflect on our amendments in his winding-up speech and provide greater clarity. I hope Northern Ireland can be a place of work, endeavour and prosperity. That is our job, the job of Parliament, the job of Cabinet and the job of the Northern Ireland Executive.