Northern Ireland (Executive Formation etc) Bill

Stephen Farry Excerpts

2nd reading
Tuesday 29th November 2022 Commons Chamber

[Chris Heaton-Harris]

I believe I have just laid a written ministerial statement to give an update on how the Government are delivering on the commitments in the New Decade, New Approach paper. The hon. Gentleman is quite right that all these things can happen simultaneously or separately and at different speeds, and have done, but there is also a fundamental issue, which was noted at that time, with the protocol. This Bill, though, is about creating the conditions in which key decisions in Northern Ireland can be taken, including on the implementation of the budget, rather than the content of the budget that I was describing before the intervention.

I will briefly summarise the overall intention of the Bill before running through its provisions. At the outset, though, I must say that I am grateful to those on the Opposition Benches—all of them—for their co-operation in moving this Bill forward. Specifically, though I know I should perhaps save this for Third Reading, I thank the shadow Northern Ireland Secretary, the hon. Member for Hove (Peter Kyle), for the constructive and cross-party fashion in which he and others on the Opposition Front Bench have approached this Bill, both in this place and the other place. I am also grateful to him for speaking to me on this important Bill over the weekend and for speaking to my hon. Friend the Minister of State yesterday evening.

The Bill broadly seeks to do three main things. It retrospectively extends the period of Executive formation for two six-week periods. That means, subject to the agreement of this House and the other place, that if an Executive is not formed within those timeframes, the election duty placed on me will kick in after the second extension of six weeks, on 20 January 2023.

[Stephen Farry (North Down) (Alliance)]

I ask the Secretary of State to reflect on the disjoint between the timetable he is setting out today for restoration of the Executive and the current pace of negotiations with the European Union. Does he not recognise the need for him to build in some further flexibility, to avoid a situation where he has to call an election at a time when the negotiations are coming to a conclusion and potentially inside that tunnel, given that an election may be very prejudicial to securing a stable outcome and to getting the necessary compromise so that Northern Ireland can move forward?

[Chris Heaton-Harris]

I thank the hon. Gentleman for his intervention and for his message to me on the subject earlier. I completely understand the point he makes, but I am hopeful that we can do the work that needs to be done within the timeframe that we are setting down now.

Returning to the Bill, the second main thing it does is to clarify the decisions that civil servants in Northern Ireland Departments can take in the absence of Northern Ireland Ministers, so that decisions in crucial areas such as public sector spending and the maintenance of public services can continue to be taken in the absence of an Executive.

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[Stephen Farry (North Down) (Alliance)]

I cannot say that I welcome the legislation, but I recognise that it is sadly necessary. It is shameful and disgraceful that the Northern Ireland Assembly and Executive are currently not in place. We continue to maintain that they should be established forthwith.

We are facing twin governance and financial crises in Northern Ireland, and huge damage has been done to our economy and public services through delayed or missed decision making. That comes at a time when there is immense pressure on Northern Ireland’s public finances. I have made the point that mistakes were made in the past and the roof was not mended when the sun was shining and we had better opportunities, so difficult decisions are now required. Indeed, our health service in particular is going through tremendous difficulties. Necessary reforms to our public sector are being delayed, which means that the budget crisis gets ever tighter as we try to balance the books on an ever-declining, burning platform.

I will touch on the key areas of the Bill, mindful of your guidance, Mr Deputy Speaker. First, I will touch on the revised deadline for the formation of an Executive and, by implication, the resumption of the duty on the Secretary of State to call an election within 12 weeks if those deadlines are not met. The Secretary of State took the right decision to defer an election after 28 October and to seek further flexibility. In the current climate, an election would have been counterproductive and would have made the task of restoration and the wider negotiations with the European Union more difficult.

My difficulty lies with the revised dates. I appreciate that the Government have to try to move the process along and put in place some kind of deadline to get people over the line, but there is a disconnect between the timescale that the Northern Ireland Office is setting out and the reality of the pace of negotiations with the European Union. Evidently, we have seen a change in the mood music over the past few weeks, which is extremely welcome, but we have not yet seen real progress in the substance of those negotiations. I earnestly wish that we reach a conclusion as quickly as possible, which will require flexibility from the UK and, may I say, the European Union. The UK Government need to take a view on exactly where they will land on these issues; I will refrain from going into the detail of those discussions, given the nature of the Bill.

The shadow Secretary of State has already alluded to the fact that the first deadline in the legislation of 8 December is next Thursday, which may in practice be only a couple of days after the Bill gets Royal Assent. What seemed to be a reasonable deadline a few weeks ago is now, I suspect, fairly meaningless, so we are focused on the second deadline of 19 January, which I note is essentially only seven weeks away. In theory, that is ample time for the negotiations with the European Union to reach a conclusion, but based on the rate of progress that we have seen in recent weeks and months, we need to be realistic that that may not be the case.

We could therefore be in a situation where the Secretary of State has a restored duty to call an election after 19 January. At that stage, perhaps progress will have finally been made in the negotiations or we might be in or about to enter the metaphorical tunnel of those negotiations. In that context, I venture that the prospect or actuality of an Assembly election would be at best counterproductive and at worst extremely damaging. The talks could grind to a halt because of that potential election, or a certain political party or others could harden their red lines about those negotiations, which would make compromise, or the acceptance of a compromise deal, more difficult.

Obviously we need strong leadership from all quarters to ensure that we can get something workable over the line. I suggest to the Secretary of State that this Bill is too inflexibly framed. I appreciate the need to focus minds, but if after 19 January it is manifestly not in the interests of the people of Northern Ireland, the negotiations or the wider public interest to have an election, the only recourse available will be the Secretary of State’s coming back to Parliament seeking a further Bill. I imagine it would go down like a lead balloon if we were in that situation. I urge the Secretary of State to take the time between now and consideration of this Bill in the other place to reflect on the way forward—to keep us focused on the job in hand but to give that bit of flexibility if it proves necessary.

Secondly, I want to talk about the guidance. I welcome the publication of the draft guidance today, but the Bill is at best a stopgap in terms of governance. We have a major hole in that regard. What we have before us is neither tenable nor sustainable beyond the shortest possible periods. There are many difficult, pressing, urgent decisions that need to be taken, and it is right that civil servants are reluctant to take significant decisions that are normally left to be taken at the political level. There are particular difficulties in taking budget decisions: it is one thing keeping a budget ticking over on a care and maintenance basis, but if the books need to be balanced in a tighter budget situation, any decision to cut something is inherently political and will be subject to some degree of challenge. The civil servants are placed in an unenviable situation, but a balance must be struck between recognising that reluctance while at least enabling critical things to be taken forward.

We must have some further discussion on the guidance. I understand it could be clarified in due course, but what type of consultations will happen over a short period of time to get the draft guidance turned into final guidance whenever this Bill receives Royal Assent? I also seek an assurance that the guidance will be flexible enough to enable—rather than direct—civil servants to implement any pay body recommendations, because that is clearly a pressing issue for many public sector workers in Northern Ireland, who perhaps at this stage have not received what has been made available in Great Britain, never mind the legitimate concerns around additional pay that many are making.

On MLA pay, I declare a previous interest in that I was an MLA whose pay was deducted under a previous Assembly. It was difficult, but it was the right thing to do, and I recognise that cutting MLA pay is the right thing to do today. I say slightly flippantly that it should be directed primarily at those who are blocking restoration of the Executive, but I appreciate that is difficult to do. I recognise the remarks from Members of other parties that this might not in itself force a change of minds, but as the Chair of the Select Committee, the hon. Member for North Dorset (Simon Hoare), recognised, there is major disquiet at MLAs receiving their full salary in the current environment, and that must be recognised inside this Parliament. Most MLAs recognise that; certainly my party colleagues do so. Notwithstanding the fact that they cannot perform their full job description as set out, they are working extensively every week to act on behalf of their constituents, to make representations and work with other groups in Northern Ireland. But they are also massively frustrated.

Finally, I want to talk about what will happen if this Bill fails, and indeed if there is no outcome from negotiations with the EU or we have an outcome that most common-sense people would accept but is none the less rejected by some Northern Ireland parties, and we therefore have continued blockage. As I have said, I do not believe the current stopgap approach to governance is sustainable. Decisions should be taken by locally elected people in Northern Ireland on behalf of their constituents. If we are in the situation of defaulting to direct rule, that is problematic in many respects. As there has been some talk of joint authority being an alternative, I want to take this opportunity just to make it very clear that for my party, joint authority is outside the context of the Good Friday agreement and outside the principle of consent. None the less, if we are to talk about direct rule, that would have to have an Irish dimension of some description, and that has been understood going back to the Anglo-Irish agreement of 1985.

That is basically what we are looking into, but short of that, we should be looking at reform of the institutions. I am not going to go into the detail of that, except to reiterate my party’s very strong commitment to allow those parties in Northern Ireland that wish to govern to do so. That is by far the next best alternative to the current arrangements. I would prefer that to be done on an inclusive basis, but the point is that some parties have the opportunity to take up places in government, and it is they who are self-excluding.

[Sammy Wilson]

When did the Alliance party have this Damascus road experience? For three years when Sinn Féin was holding up progress and holding up the Assembly in Northern Ireland, I never heard once that the Alliance party believed that the Assembly and its structures should be changed to facilitate that.

[Stephen Farry]

I am grateful to the right hon. Member for his intervention because it gives me the opportunity to reiterate that my party has consistently advocated reform of the Assembly structures. It has been in our party manifestos going back to 1999. In particular, in the period between 2017 and 2020, my party made numerous comments publicly on the need for reform. I will gladly forward copies of speeches made by my party leader to party conferences to the right hon. Member so that he can read them with a great deal of interest.

[Colum Eastwood]

Far be it from me to get involved in this conversation between the Alliance party and the DUP, but would the hon. Member like to tell us his understanding of what the DUP’s position actually is on mandatory coalition, because as far as I am concerned, it seems to be a new convert to the principle?

[Stephen Farry]

We can look at this in two different ways—what happened before 1972, and what happened in the 1970s and 1980s through to what happened during the talks. I would stress that, if we read the DUP manifestos up to the point of its current walk-out, we can see that it was actually a fan of reform of the institutions and moving away from mandatory coalition. It was a principle for the DUP then, but that is no longer the case. Indeed, the right hon. Member for Lagan Valley (Sir Jeffrey M. Donaldson) famously went on “Question Time” during the last impasse and lambasted the situation in which a party with about 25% of the vote was able to frustrate the institutions. I think I will leave it there.

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[Jim Shannon]

I thank my hon. Friend and colleague for reminding us of that important factor, which cannot be ignored. The leader of Sinn Féin across all Ireland, north and south, is a Member for her political party down south and has jurisdiction through her party in Northern Ireland as well, so what happens in Dublin will clearly have an impact on Northern Ireland. I therefore believe, like my hon. Friend and others, that we cannot ignore the issue in this House. That is the point that I think he was making, and I concur totally.

The DUP was proud to table new clause 7, but it was not selected for debate. It would have changed the date of the local government elections in 2023 to take into consideration the King’s coronation celebrations. Because Northern Ireland elections are conducted under proportional representation, counting takes significantly longer than is normal in other parts of the United Kingdom.

[Stephen Farry]

May I put it on the record that my party agrees with the DUP on the issue? There may well be some degree of consensus on a pragmatic reform to take into account the need to respect the coronation and respect the elections in Northern Ireland. I hope that that gives the Northern Ireland Office a hint.

[Jim Shannon]

Well, we have a consensus! I am pleased to hear that the hon. Member and his party concur with our opinion, so I hope that when the Minister of State replies to the debate he will give us a positive answer. It is important because if 4 May remains election day, the results will extend into coronation day. That is the very nature of what will happen back home, so it must be changed to ensure the public participation of candidates, the electoral office staff, who are an important part of it all, and the party supporters attending count centres. I urge the Government to take our proposal into immediate consideration for the sake of the celebration of the King’s coronation, and I thank the hon. Member for North Down (Stephen Farry) for his support.

The amendments that the DUP has tabled are for the greater good of Northern Ireland and our economic and constitutional position within this great United Kingdom. We hope that the Government will listen to us. They must be assured of our stealth and determination in regard to the damaging effect that the Northern Ireland Protocol Bill is having on Northern Ireland.

Northern Ireland (Executive Formation etc) Bill

Stephen Farry Excerpts

Committee stage
Tuesday 29th November 2022 Commons Chamber

[Sir Jeffrey M. Donaldson]

Actually, that is not what the former DAERA Minister said. He recognised that the protocol is not working and is harming agriculture. Our farmers cannot bring seed potatoes from Great Britain into Northern Ireland, and there are many other restrictions on the movement of livestock and so on. The point he was making was that there should be no restriction on state aid support for farmers in Northern Ireland as a result of the protocol Bill—not as a result of the protocol.

We can go around in circles on all this. We can train-spot on MLA pay all day long, but the reality is that we are missing the train coming down the track. And the train coming down the track is the lack of consensus enabling the political institutions to function properly. That is what we need to resolve. The Bill allows more time for the solution to be found, and that is what we need to happen. We need the solution.

[Stephen Farry]

Members will be pleased to know that I will be extremely brief. I will touch on a few points.

First, I will not repeat the arguments for amendment 10 given that I mentioned them on Second Reading, but I invite the Secretary of State or the Minister to respond to the substance of it when they wind up. I hope they will reflect on what I and the shadow Secretary of State, the hon. Member for Hove (Peter Kyle) have said about not boxing themselves in for what lies ahead.

Beyond that, I stress that there is a need for some degree of ad hoc scrutiny in what happens over the coming weeks and months. With respect to my DUP colleagues, amendment 13, taken literally, is somewhat onerous, but there is also an elephant in the room: our best means to scrutinise decision making in Northern Ireland is to have a fully functioning Assembly.

[Mr Baker]

First, I thank Members opposite for being constructive in dealing with Northern Ireland issues while also holding us to account. They are holding us to account on new clause 6 in particular, and have asked us to provide reports. We propose instead to make statements to Parliament, including oral statements. Those Members know that they are very welcome to be in touch with us with suggestions. Clearly, we do not want to be in here every day—nor would we need to be—but we would wish to make statements so that Parliament is properly informed. The Secretary of State and I are fully committed to working constructively with the House.

Turning to amendment 10 on indefinite extension, it is not the intention of the legislation to create indefinite or undefined extensions to the Executive formation period. We are deeply aware that the previous political impasse dragged on for three years, and we cannot allow that to happen again.

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[Mr Baker]

I wholeheartedly agree with my right hon. Friend. Getting that deal will require us, as we have said several times, to respect the legitimate interests of our negotiating partners while also delivering on the legitimate interests of Unionists. I am extremely grateful to him for his support.

[Stephen Farry]

I want to press the Minister on that point. I fully accept his point that the legislation being open-ended is not desirable in any sense, but, equally, we are seven weeks away from the 18 January deadline. If he is genuinely telling us that he believes we will have a full outcome in that period, that is great, but surely he recognises that that may not be the case and that it would be best not to box himself in entirely.

[Mr Baker]

I certainly recognise that we may not reach a deal, and that is why the Northern Ireland Protocol Bill continues its passage in the other place, but the reality is that we cannot allow ourselves to drag on with indefinite extension. The people of Northern Ireland deserve good government, and that is why the legislation is drafted to create a short, straightforward and defined extension to the period for Executive formation. I very much hope that we will conclude an agreement, reform the institutions and then move forward.