Northern Ireland Budget (No. 2) Bill

Sammy Wilson Excerpts

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

[Sammy Wilson (East Antrim) (DUP)]

I welcome the Bill tonight because it secures the money we voted to Departments to keep them running until the end of July and assures them that the full funding will be available until the end of the financial year.

We accept, however, that this is not a satisfactory arrangement. Issues such as budget allocations, how the money is spent and the monitoring of how it is spent all require detailed examination by politicians—that is how we get the accountability that should attach to any budget—but we can see from attendance tonight that there is no massive interest in the House. Indeed, there is a certain irony. For the past year, sitting in the Chamber, I have seen Member after Member stand up and say how concerned he or she is about the Brexit negotiations and the impact that Brexit would have on Northern Ireland, the impact that it would have on the Good Friday agreement, and the impact that it would have on community relations and the people of Northern Ireland. However, when it comes to the budget for the people of Northern Ireland, they are nowhere to be seen. I do not think that that irony is lost on the people of Northern Ireland. The pseudo-concern that we have heard from the Labour party during the Brexit debate represents little more than an opportunity to score political points and, conveniently, to use Northern Ireland as a means of arguing against the referendum result and the people who wanted to take us out of the European Union.

[Ian Paisley]

Labour Members who are so interested in whether there should be a hard or a soft border could have put on record their concern about the number of officers who have been recruited to the Northern Ireland border service and Her Majesty’s Revenue and Customs to deal with these issues, and how those officers have been recruited, but hark! I hear nothing from the Labour Benches.

[Sammy Wilson]

There are plenty of other aspects of the budget that could have been related to the concerns that Labour Members have been expressing. In that regard, Scottish National party Members are no different—they too have expressed great concerns.—and the same applies to the Liberal Democrats, who are nowhere to be seen. At least some Labour Members are present, but none of the rest has turned up.

This is not a satisfactory arrangement. I think I should use some of my speech to talk about how we got here, why we are here, and who is responsible for the fact that our budget is being dealt with in this way in the House of Commons.

[Lady Hermon]

Will the right hon. Gentleman give way?

[Sammy Wilson]

I am sure that the hon. Lady will have an opportunity to make her point later, when she makes her own speech.

This is the second occasion on which the Northern Ireland Budget has come to this House. On the first, in an act of political cowardice the then Finance Minister in the Northern Ireland Assembly, Máirtín Ó Muilleoir of Sinn Féin, refused to bring a budget to the Assembly. Sinn Féin has always liked to hold its hand out for British pounds, but it does not like to make the hard decisions that must be made when it comes to spending money in a responsible way. No budget was brought to the Northern Ireland Assembly in November 2016 when it should have been, and, shortly after that, Sinn Féin collapsed the Assembly.

That was very convenient, because Sinn Féin did not have to make the hard decisions. They wanted the post and the responsibility—they wanted all the kudos that was involved in being head of the Department of Finance— but they did not want to make the hard decisions. It was convenient that the Assembly collapsed—or that Sinn Féin collapsed the Assembly—because that meant that Sinn Féin did not have to put their hand up for a budget.

I have been in that position. When one has to allocate money across Departments, there will always be people who are disappointed, and there will always be criticism. One will be told that one should have prioritised this and should not have given money to that, or that, magically, one should have produced for everyone money that just was not there, which, of course, is not always possible.

The budget came to the House of Commons on the first occasion because of Sinn Féin’s failure to produce a budget; on this occasion, it has come here because Sinn Féin made it impossible for anyone else to produce a budget. Having collapsed the Assembly, Sinn Féin then refused to return to it, appoint Ministers, and enable the Assembly to make decisions about how money was spent and allocated and to present a budget for the people of Northern Ireland. Sinn Féin preferred to engage in a game of blackmail: they would not allow the Assembly to be set up unless all the parties in the Assembly agreed to their agenda, before they were even in the Assembly. Sinn Féin knew that that agenda would have been impossible to deliver had it come to votes in the Assembly—even some of the nationalists would not have voted for it—so what did they do? They sat outside and said, “We have a veto. Under the rules that currently govern Northern Ireland, if we are not included in the Executive that Executive cannot sit, and that Executive will not sit until we get our way and are given promises that the policies we want will be implemented.”

Oddly enough, it seems that Sinn Féin are holding up all political progress in Northern Ireland so that the 4,000 Irish speakers in Northern Ireland can see Irish road signs and can be spoken to in Irish when they telephone about their rates bills, although they can all speak English. We are being held to political ransom. We have Irish broadcasting and Irish schools, and £197 million is spent on all kinds of Irish-medium education. We spend money on Irish festivals, and we allow Irish street names if enough people in the area want them. Despite all that, one of the reasons we are discussing this budget here tonight is that because 4,000 people in Northern Ireland claim to be Irish speakers, Sinn Féin say that unless an Irish language Act makes Irish an official language—which would mean hundreds of millions of pounds of expenditure—they will not allow any progress.

The hon. Member for Paisley and Renfrewshire North (Gavin Newlands) said that he did not want to become involved in an argument about who was right and who was wrong, and who was responsible. However, if he looked at even the surface of what is happening in Northern Ireland, he would be able to point the finger of blame—and, by the way, the blame does not lie with the Government at Westminster, although I know that the favourite activity of the Scottish National party is to blame them for everything. The blame for this should not be laid at the door of the Government at Westminster; it should be laid at the door of those who know that they have a veto, who have used that veto irresponsibly, and who are quite happy for this budget to be pushed through the House of Commons today without the level of scrutiny and accountability that would have been possible in a Northern Ireland Assembly.

[Jim Shannon (Strangford) (DUP)]

Sinn Féin often ask about the Irish language and the funding for it, but very few members of Sinn Féin can speak Irish. Is my right hon. Friend as amazed about that as many of the rest of us are?

[Sammy Wilson]

It does not surprise me at all. Sinn Féin have introduced this hurdle because they do not want the Assembly to be up and running anyway. I shall say more about that in a moment. Sinn Féin prefer the political vacuum, for a reason. The Secretary of State must bear that in mind, as must the hon. Member for Rochdale (Tony Lloyd), who said that he hoped that this was not part of some creeping direct rule. There was a contradiction in his argument, because he then said that we were moving towards a crisis, and that there must be pressure for action. He was right.

There are decisions that need to be made, and we need a process for that. It is clear, however, that one of the parties required to set up the Northern Ireland Executive is determined not to be in that Executive. Its members prefer to sit on the Terrace of the House of Commons, lobbying Ministers and Members, rather than coming in here, and rather than doing their job in Northern Ireland as well. We see them all the time, sitting about this place collecting millions of pounds for not doing their jobs, and at the same time complaining about the outcome of the process. They have pointed the finger at the DUP, and one of the arguments they have made is that my party and those who asked the Government to implement this budget are supporting Tory austerity. However, I can say that we have probably done more to alleviate the impact of austerity in Northern Ireland than Sinn Féin or all the other parties put together, because, as my right hon. Friend the Member for Belfast North (Nigel Dodds) has pointed out, the confidence and supply arrangement that we reached with the Government was what resulted in the additional resources the Secretary of State has referred to becoming available to the Northern Ireland budget.

I know that the hon. Member for Paisley and Renfrewshire North would have liked to have had the same benefit. I thought the SNP was opposed to outsourcing, but it appears that it wants to outsource the negotiations on its budget to the DUP, saying to us, “You go and do a deal with the Government and then we will reap the benefits of it.” I think the Government may well be prepared to make the benefits of that kind of confidence and supply arrangement available to the Scottish National party if it is prepared to back the Government in the same way as we have done.

In fact, we had the situation last week when the SNP was so determined to annoy Members of this House that it called votes when we were in the Smoking Room cheering on England to get them through to the quarter-finals—they are now in the semi-finals. What were SNP Members doing? They were doing their best to disrupt our night of enjoyment. They can hardly expect a confidence and supply arrangement from anybody in this House when they behave in that way.

I accept that this is a difficult budget. In cash terms, it is a flat budget. The amount available to Government Departments in Northern Ireland is no different from that in the previous year, and that does present challenges. It presents further challenges when the allocations are based on decisions that the Assembly made nearly two and a half years ago. It set certain priorities, wanting to see over the next five years an extra £1 billion put into the health service, and of course that meant that, since the cake had to be sliced up, other Departments would find that their budgets faced cash reductions.

While this has presented challenges, those challenges have been reduced somewhat due to the additional money obtained for the reform of the health service, the additional money for frontline services in health and education, and the additional money for broadband, infrastructure projects, mental health and areas of severe deprivation. Indeed, some school budgets, or parts of school budgets, have been protected because breakfast clubs, after-school clubs and so on have been able to have money allocated to them from that severe deprivation funding.

[Lady Hermon]

I want to pick up on the points made earlier by the right hon. Gentleman’s party colleague the right hon. Member for Lagan Valley (Sir Jeffrey M. Donaldson) about schools in his constituency, because I must add to those concerns my worries about school budgets in North Down. The right hon. Gentlemen has called on the Government to boost health and education, and the Government in turn have delivered that through the confidence and supply arrangement, so how on earth can it be that budgets in North Down for primary and special care schools are so stretched? Please will the right hon. Member for East Antrim (Sammy Wilson) explain that to the principals and parents in my constituency?

[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.

[Sir Jeffrey M. Donaldson]

My right hon. Friend, and the Secretary of State and her Minister, might be interested to know that we have been waiting several years for the introduction of a weight limit in Hillsborough village in my constituency. Heavy vehicles are damaging the conservation zone and the historic Georgian buildings in the centre, but the village cannot be afforded the protection it needs because we now need legislation, which requires decisions at a ministerial level. Hillsborough cannot be given the protection it requires, even though Historic Royal Palaces has done a wonderful job in restoring and introducing new facilities at Hillsborough Castle. The whole situation is having an impact on many people in Northern Ireland.

[Sammy Wilson]

I am sure that Members on these Benches could give lots of local examples of decisions not being made on things that matter to individuals and communities because we do not have a local Administration.

I would say to the Secretary of State that we want devolution—we are a devolutionist party and we believe that it is the right thing—but there is increasing cynicism in Northern Ireland about devolution, and the longer we go on without a devolved Administration, the more that cynicism will grow. This is not a case of putting the blame on all the parties and saying that they all need to get together. The pressure has to be put on those who are holding up devolution, the ones who will not go through the doors, the ones who are happy to sit here and sponge off taxpayers, and the ones who are happy to sit in Northern Ireland and complain about no decisions being made while at the same time being the very ones who refuse to allow a situation to develop in which those decisions could be made.

[Nigel Dodds]

My right hon. Friend is making some powerful points, which I am sure that those on the Treasury Bench are listening to carefully. Just as a marker about decision making might be put down in Committee, such a marker is clearly being put down now, not just by the representatives of Northern Ireland in this House but by business in Northern Ireland. We have heard a lot of talk about business in relation to Brexit. The chambers of commerce, the Institute of Directors and the CBI, which the Secretary of State visited recently, are all saying that it is time to get decisions made in Northern Ireland. That was made clear in a meeting with business representatives that we had two weeks ago. They said, as we are saying, that they want devolution, but in the meantime, there cannot be a situation in which part of the United Kingdom is left without government for 15 months.

[Sammy Wilson]

That is one of the reasons why I think we will need some intervention. The hon. Member for Rochdale (Tony Lloyd) made the point quite forcefully that Northern Ireland had faced far bigger and more difficult situations than this in the past. I remember when I was a member of the Executive, as was the Member for North Down—[Interruption.] I mean North Belfast. I am sorry. My right hon. Friend the Member for Belfast North has taken over North Down as well.

I remember when we faced the devolution of policing. Nothing was more controversial in Northern Ireland than the devolution of policing, especially as it was going to be devolved to an Assembly that contained people who had supported the killing of policemen and women. We were prepared to work at that, however, in order to get an agreement and to get policing devolved to Northern Ireland.

I think that that illustrates the point that this party has been flexible all along when it has come to making devolution work. However, no amount of flexibility is going to get us over a situation in which one party, which has a veto, does not want to make the tough decisions, does not want to be associated with any compromise around Brexit and does not want to have to deal with its murky past when it comes to legacy. That party is determined to use its veto to keep the Assembly from sitting to keep the Executive from being formed. A former leader of our party recently gave a lecture when he was appointed visiting professor at Queen’s University, and he made the point that perhaps we are coming to a time when, if the Government are squeamish about direct rule, we have to look again at the rules of the Assembly that allow a veto for parties that are prepared to use it indefinitely and damage even their own constituents in pursuit of their own ideology.

I believe that we will come back next year and have this same debate. We will again have to discuss a budget for Northern Ireland that will be based on decisions made nearly four years ago—as it will be by then—that no longer have much relevance to the changing needs of the Northern Ireland economy. Sadly, that budget will reflect that position, rather than being an up-to-date budget that has been debated by people in Northern Ireland and decided by politicians there.