Steve Baker
Main Page: Steve Baker (Conservative - Wycombe)Department Debates - View all Steve Baker's debates with the Northern Ireland Office
(11 months, 3 weeks ago)
Commons ChamberThe UK Government are acutely aware of the cost of living pressures experienced in all parts of the UK since the onset of war in Ukraine. We provided an estimated £2 billion of financial support to Northern Ireland, including more than £1 billion in the form of the energy price guarantee and the additional £600 payment to help households with the rising cost of energy. Tackling inflation continues to be a top priority for this Government.
Every country in the world is having to deal with the impact of the war in Ukraine and the impact of the pandemic, but only one country is having to deal with the impact of Brexit, which is what is driving up prices and the cost of living for people in Northern Ireland and across the UK, isn’t it?
I am inclined just to say no. The reality is that this conversation will keep going to and fro. We have left the European Union and we are staying out of the European Union. Our task is to make sure that we flourish as a nation outside the EU, and I wish the hon. Gentleman would just get behind it and move on.
In June this year, according to research by the Trussell Trust, one in six people across Northern Ireland faced hunger, with nearly half of those referred to Trussell Trust food banks being children under the age of 16. In Scotland, primary school children get a £120 uniform grant and secondary school pupils get a £150 uniform grant, but the amount in Wales in Northern Ireland is almost a quarter of that. Given that parents are choosing between spending money on back-to-school supplies or on food, what steps is the Minister taking to ease the cost of living pressures on families in Northern Ireland?
As I said, we provided a large sum of money to ease cost of living pressures in Northern Ireland. The hon. Gentleman mentions food banks, which are very much on my mind, given the scale of the food bank in Wycombe. I am very well aware of the cost of living pressures in Northern Ireland. We continue to put large sums of money into Northern Ireland, but it would be much better to deal with all these issues in the presence of a restored Executive.
May I join in the congratulations to my right hon. Friend on his first anniversary? I also thank the new shadow Secretary of State for the huge contribution he has made as vice-chairman of the UK-EU Parliamentary Partnership Assembly. In welcoming the money that has been provided to Northern Ireland to help with the cost of living pressures, does the Minister agree that it would be even better, and more efficiently spent, if the Executive were back up and running?
Yes, I absolutely do; my right hon. and learned Friend is right on that. Time and again we are asked to intervene, and every time we are asked to intervene that is a call for direct rule. We do not intend to get into direct rule. It would be far better if local decisions were taken by a locally accountable Executive.
The Government have shown their commitment to supporting the people of Northern Ireland through the recent increase in the cost of living. In the absence of an Executive—we all accept that one is absolutely necessary—will my hon. Friend assure me that the Government will continue to intervene where necessary for the people of Northern Ireland?
We will continue to work for the people of Northern Ireland, respecting the devolution settlement. For example, in recognition of the cost of living pressures faced by workers across the UK, the Government increased the national minimum wage rate by 9.7%, to £10.42 per hour for workers aged 23 and over, at the spring Budget. We will continue to be seized of the need to help those least well off.
The cost of living crisis is clearly continuing to bite hard in Northern Ireland, with footfall at stores across Northern Ireland falling by 5% throughout August. What steps is the Department taking to enable people to take full advantage of the highly privileged economic status and market access that Northern Ireland now has, which this Government have deprived to the rest of the UK?
I disagree with the hon. Gentleman’s use of the term “deprived”, but I am happy to tell him that next week we have the Northern Ireland investment summit. We are determined to attract private sector investment into Northern Ireland and to promote inclusion in that growth. Northern Ireland has a fantastically vibrant economy, and I very much hope that the least well-off will have opportunities through our investment in skills to develop themselves and to secure more better paying jobs in Northern Ireland, so that they can move on.
We routinely monitor trends in the Northern Ireland economy. It has the ingredients required for economic success: exceptional talent, creativity and innovation. Although challenges persist, recent indicators suggest resilience and the potential for growth. This Government remain committed to fostering a productive environment for economic development and prosperity in Northern Ireland. I look forward to our investment summit between 12 and 13 September—next week—which is a fantastic opportunity to showcase Northern Ireland’s economic potential to the world.
I thank the Minister for that encouraging response. He will be aware that Northern Ireland’s largest trading partner by a very long way is Great Britain. It is therefore important that there is frictionless trade between Great Britain and Northern Ireland, so will he update the House on what discussions he has had on the future operation of the green channel?
One of our priorities now is the successful implementation of the Windsor framework and that green channel. We will continue to have conversations with colleagues in the Cabinet Office who lead the Windsor framework taskforce. I assure my hon. Friend that we are determined to ensure that that system works as seamlessly for everyone.
Will the Minister confirm that at next week’s investment conference the Government will proactively market Northern Ireland’s dual market access under the Windsor framework?
Yes, I can confirm that. I am absolutely determined that we shall do so. Indeed, next week I shall chair a session on that issue. This is not just about access as of right to the UK market and as a privilege to the EU market; it is also about being under our services regulation, which is an advantage, in combination with access to our free trade agreements, such as the comprehensive and progressive agreement for trans-Pacific partnership. This is a unique opportunity in all of the world, including right across the EU, and I am convinced that he and I, and we all, should make the most of it.
Under the Windsor framework, sending parcels to friends and family in Northern Ireland will be as smooth and easy as it is today, removing any burdensome paperwork, costs or delays. Northern Ireland consumers will be able to order from businesses in the rest of the UK and receive goods in the post as they do now, without customs processes or burdensome costs. This will maintain consumer choice for British goods in Northern Ireland. Businesses sending goods to other businesses will use our new green lane.
A number of constituents and consumers have contacted me to highlight that many eBay or Amazon providers will no longer ship to Northern Ireland as they state that they cannot afford the enhanced fees, demonstrating that Northern Ireland continues to be treated differently. It is costing small businesses and individuals the ability to shop around. What steps can the Minister take to revisit the framework with our EU counterparts, to ensure free and fair trade throughout the United Kingdom that is clear and easy to follow for all businesses?
Under the protocol as it was, all parcels would have needed to complete full international customs processes. I believe that the suppliers to whom the hon. Gentleman refers will be making their plans under the protocol as it was. Under the Windsor framework, parcels to consumers will not be subject to those burdensome processes. He reminds us all that we need to redouble our efforts to communicate to suppliers the message that they will be able to take advantage of a new green lane and supply to consumers in Northern Ireland. It is a subject close to my heart, and I can see that it is extremely close to his too.
The Northern Ireland Budget (No. 2) Bill 2023-24 is progressing through Parliament and is due to be debated in the other House next week. The Secretary of State has used his powers to request information and advice from the Northern Ireland civil service on measures that could generate revenue and improve the sustainability of public finances.
I thank my hon. Friend for his answer. I congratulate him and the Secretary of State on their anniversaries and pay tribute to them for all they have done in the past year.
Some have suggested that we could reform the Barnett formula to address the sustainability of public finances in Northern Ireland, but does my hon. Friend agree that that is not a silver bullet, and that trade-offs will need to be made to fund public services?
I am extremely grateful to my hon. Friend for his question. This is a very important point. Although we will remain open to discussing proposals put to us by the Northern Ireland parties, it would not be a silver bullet to reform the Barnett formula. An Executive will still need to make trade-offs when they decide to spend scarce resources. Negotiations between the Welsh Government and the Treasury on a fiscal framework, which included an adjustment to the Barnett formula, took place over seven years, so, with the best will in the world, it is not an issue that can be solved overnight. What we need is a functioning Executive and we stand ready to work with that Executive. In the meantime, we will continue to engage with the Northern Ireland civil service on a range of measures that could improve fiscal sustainability.
Early years services are vital for children to reach their potential, but they are underfunded and at risk in Northern Ireland. Northern Ireland is the only part of the UK without a childcare strategy. According to the Department for Education, it was delayed again because early years faces potential significant budget reductions. When can hard-pressed families in Northern Ireland expect the childcare strategy? Will the Minister commit to early years services receiving the increased multi-year funding that is needed to invest in children?
I am glad to welcome the hon. Lady to her place. As she knows, education is devolved in Northern Ireland and it is a matter for the Education Department there to take these decisions, but her point is well made, and I am confident that, when she makes her first visit to Northern Ireland, like me she will be engaging with all parties on just such issues.
The cliff edge on veterinary medicines has been removed, protecting the supply of those medicines in Northern Ireland through to 2025, while we work through sustainable, long-term solutions. We are much more optimistic about reaching those solutions in the context of the Windsor framework. There will no longer be any need for costly phytosanitary certificates for each movement of plants staying in the UK. We have paved the way for 11 banned plant species to move again by the time of the next planting season. These were priority cases identified by the industry itself, and we have progressed further cases since announcing the Windsor framework. We are working closely with a wide range of stakeholders to ensure that gardeners, farmers and growers can access plants and seeds from a wide variety of sources.
With regards to veterinary medicines, I fear the Minister’s sunny optimism may be somewhat misplaced. After all, his preferred stakeholder—Mr Bernard Van Goethem, the deputy director general for food sustainability—has made it abundantly clear to DEFRA and the UK Government that the negotiations on this matter are “over”. The deal is done. There will be no change to veterinary medicines. This means that insulin will no longer be available in Northern Ireland for animals. Veterinary medicines for botulism—144,000 were issued last year—will no longer be available. What will the Secretary of State and the Minister do about this?
The hon. Gentleman has presented me with information about which I was not aware beforehand. I am certainly happy to look at what has been said, but what I would say to him is that my right hon. Friend the Prime Minister did the deal that no one said could be done. That has transformed the relationship with the European Union, and I am therefore confident that we will be able to deliver a deal on veterinary medicines. As we sometimes say, I do not recognise the information that the hon. Gentleman has presented. It is new to me, and I shall be glad to look at it, but we will certainly have to deliver a deal.
The Ulster Farmers Union estimates that 1,700 veterinary medicines could be withdrawn from the market in Northern Ireland unless the Windsor framework is fixed. I urge the Minister to do that.
Certainly. My right hon. Friend makes her point with great clarity. Of course, having made it on an occasion such as this, it has been heard by a wide range of Ministers, and I am confident that we will be able to redouble our efforts to deliver what we need on veterinary medicines.