Oral Answers to Questions

Theresa Villiers Excerpts

Wednesday 24th June 2015 Commons Chamber

[Suella Fernandes (Fareham) (Con)]

11. What progress has been made on implementation of the Stormont House Agreement.

[The Secretary of State for Northern Ireland (Mrs Theresa Villiers)]

With permission, Mr Speaker, I will first offer my condolences, and those of my colleagues in the Government, in relation to the tragedy that occurred in Berkeley which took the lives of five Irish students. The pain of that loss is felt across the UK and Ireland.

The Government are making progress on their obligations under the Stormont House agreement. We have legislated for corporation tax devolution and we expect to introduce a Bill soon on new structures on the past. I urge the Northern Ireland political parties to deliver on their side of the agreement, including welfare reform and passing a sustainable budget.

[Andrew Gwynne]

I would like to associate myself with the Secretary of State’s comments.

Many young people in Northern Ireland have been given the opportunity to build a shared and integrated future through educational programmes for which there are substantial resources under the Stormont House agreement. Now that a waiting game is being played as the parties in Stormont must agree on other matters, will the Secretary of State update the House on the status of those initiatives?

[Mrs Villiers]

An important part of the financial package offered by the UK Government under the Stormont House agreement includes £500 million to support shared and integrated education as a crucial means of building reconciliation in Northern Ireland. The financial package is of course contingent on the Stormont House agreement being implemented. The UK Government think this is one of the main reasons why we need to press ahead with the welfare provisions and the sustainable budget. It would be a huge setback for Northern Ireland to lose the rest of the Stormont House agreement, including the valuable funding for shared and integrated education.

[Andrew Stephenson]

Does my right hon. Friend agree that the implementation of the Stormont House agreement is the only way to get things back on track in Northern Ireland, and that the Government should continue to do all they can to achieve that?

[Mrs Villiers]

I do agree. We are working hard and the Executive are making a degree of progress with a number of their obligations under the agreement, but it is vital that welfare reform, which was agreed in Stormont Castle and Stormont House, is implemented. It is a good deal for Northern Ireland. The reformed system provides real help for vulnerable people and rewards work. It is a better system than the one it replaces. Under Stormont Castle, the five political parties agreed top-ups from the block grant that would give Northern Ireland the most generous welfare system in the United Kingdom.

[Suella Fernandes]

As has been mentioned, the Stormont House agreement contained a financial package of up to £2 billion of additional spending power for the Northern Ireland Executive. Does my right hon. Friend agree that that represented a substantial commitment by the Government to Northern Ireland which, should the agreement not be implemented, could be in jeopardy?

[Mrs Villiers]

It would indeed be in jeopardy, which is one of the main reasons why it is very important for the Northern Ireland Executive to pass a budget that works. That will be impossible without the implementation of the welfare provisions. It is incumbent on every Administration worldwide to live within their means. The consequences of denying the deficit and spending money without regard to the consequences are extremely negative for front-line public services, which is why getting the Stormont House agreement back on track is essential if we are to continue to ensure public service provision is of high quality in Northern Ireland and vulnerable groups are protected.

[Mr Nigel Dodds (Belfast North) (DUP)]

Everyone in Northern Ireland and further afield agrees that the reason the Stormont House agreement is not being implemented is the failure of Sinn Féin and the Social Democratic and Labour party to live up to what they agreed back in December, and to implement what they agreed and signed up to. Will the Secretary of State accept that this is now costing Northern Ireland £2 million a week in terms of loss to the block grant? That is hitting vulnerable people, and imposing austerity and greater cuts, which those parties claim to be against. Does she accept that she must live up to her responsibilities and take action to ensure the agreement is implemented?

[Mrs Villiers]

I agree that every day welfare reform is delayed and every day Sinn Féin and SDLP refuse to live up to their obligations under the Stormont House agreement costs the Northern Ireland Executive money. If the situation is not resolved soon, we will start to see a significant negative impact on Northern Ireland’s front-line services, because it will not have a sustainable or workable budget without Sinn Féin and SDLP living up to the commitments they undertook as part of the Stormont House agreement. I will continue to work to see that welfare reform is agreed and implemented, and the Government will consider all the options.

[Mr Dodds]

Given that we are now into the period running up to 12 July and beyond, does the Secretary of State accept that enormous efforts were made last year by community leaders and political parties to ensure peace and calm on the streets of Belfast and elsewhere? Since then, she has abandoned the only initiative that was in the offing to move things forward, and has not come up with an alternative. Will she undertake to look at the parades legislation? She has the responsibility for parading issues—it is not devolved—so will she come forward with proposals to move the situation forward and find a replacement for the current failed regime?

[Mrs Villiers]

The best way to take forward reform of parades adjudication is, of course, through the Stormont House agreement. I understand that the Office of the Legislative Counsel has been preparing the options for which it was tasked, under the agreement, for reform of parades legislation. I hope that they will be published soon. Alongside others, I will take part in the debate about what a reformed system of parading would look like and how it would work. In the meantime, it is crucial for us all to work together to encourage a peaceful parading season, where determinations are obeyed and any protests and parades are both peaceful and lawful.

[Mr Laurence Robertson (Tewkesbury) (Con)]

With regard to setting the budget and many other decisions that need to be taken, is not the fundamental problem that the Assembly and the Executive were designed for the very good reason of bringing people together, but that that does not make for an efficient decision-making body? What thought has the Secretary of State given to how we might move forward to a position in which the Assembly and the Executive can take decisions on a day-to-day basis?

[Mrs Villiers]

These difficult decisions on living within one’s means are more challenging in a situation in which there is a broad coalition and multiple vetoes. Where there is the political will, however, it is perfectly possible for the Northern Ireland Executive to pass a sustainable budget and implement the Stormont House agreement. That is why it is very important for the two nationalist parties, Sinn Féin and the SDLP to live up to the undertakings they made. The Stormont House agreement was a good deal for Northern Ireland. It was rightly praised by Sinn Fein when it was agreed, and now it needs to get on and implement it.

[Dr Alasdair McDonnell (Belfast South) (SDLP)]

Let me reassure the Secretary of State that the SDLP has lived up to, and will continue to live up to, every detail of its obligations. I would be very glad to discuss with her any of the details that she has not understood. Although the Stormont House agreement achieved much, it did not fully complete the circle of the many issues involved. Will she define the Government’s position with regard to the Stormont House agreement? Are they active participants for peace and progress, or are they neutral observers?

[Mrs Villiers]

We are active participants for peace and progress. That is why we are fully engaged on our side of the Stormont House agreement and in encouraging the parties to live up to theirs. Obviously, a crucial part of the agreement is progress on dealing with the legacy of the past. That is another reason why I appeal to the hon. Gentleman and his party colleagues to unblock the questions about welfare so that we can press ahead with those institutions that his party championed during the Stormont House talks.

[Mr Ivan Lewis (Bury South) (Lab)]

Can the Secretary of State confirm that in the event of the Stormont House and Stormont Castle agreements being implemented, the Northern Ireland Executive will operate a far more compassionate and generous benefit system than is available in the rest of the United Kingdom?

[Mrs Villiers]

I believe that the welfare reforms introduced by this Government are the best ones for the whole of the United Kingdom. I believe it is crucial to replace a system that has failed and trapped people in poverty with one that rewards work and caps benefits. I believe that the top-ups agreed by the Northern Ireland parties at the Stormont Castle agreement produce a useful and helpful addition to match specific local circumstances.

[Mr Lewis]

Although we disagree with the Government on the bedroom tax and on their refusal to come clean on future benefit cuts, the Secretary of State is right to insist that these agreements are honoured without extra money from the Treasury. In the past, Northern Ireland’s leaders have earned great respect for making tough choices for peace. Does she agree that all parties must now accept that an affordable and sustainable welfare system is vital to securing financial and political stability in Northern Ireland?

[Mrs Villiers]

I thank the hon. Gentleman for those comments. It is crucial for the Northern Ireland Executive to find a way to live within their means. They are not being asked to do anything that Governments across the developed world have not had to grapple with over the last five years. Their block grant has gone up a little in cash terms and come down only by about 1% per year in real terms. It is deliverable; it is possible to do this. The Stormont House agreement delivers a good deal for Northern Ireland, including on welfare.

[Jo Stevens (Cardiff Central) (Lab)]

2. What steps the Government are taking to tackle low pay in Northern Ireland.

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[Ms Margaret Ritchie (South Down) (SDLP)]

5. What discussions she has had with the Chancellor of the Exchequer on the implementation of greater fiscal flexibility for Northern Ireland; and if she will make a statement.

[The Secretary of State for Northern Ireland (Mrs Theresa Villiers)]

I have regular discussions with Treasury Ministers, including the Chancellor. The Government are giving £2 billion of extra spending power to the Northern Ireland Executive under the Stormont House agreement.

[Ms Ritchie]

I am glad to hear that Northern Ireland Ministers are having conversations with the Treasury, but will the Secretary of State and her Minister now act as persuaders on behalf of Northern Ireland, which would benefit from a reduced rate of VAT on tourism for the whole United Kingdom?

[Mrs Villiers]

I know that is a matter of great importance to the hon. Lady and her party. The reality is that the Government have to act with caution when it comes to reductions in taxes. We have identified further increases to the income tax threshold as our priority, but no doubt the Chancellor will be able to share more information on those matters in his Budget.

[Sammy Wilson (East Antrim) (DUP)]

I am sure the Secretary of State will agree that the last party that should be seeking additional fiscal flexibility for Northern Ireland is the SDLP, given the way in which it and Sinn Féin have put the budget in Northern Ireland in jeopardy. But will she spell out for us the implications for the budget of the financial mess that the refusal to implement the Stormont House agreement has made? What are the implications for the devolution of corporation tax, which has already been agreed?

[Mrs Villiers]

The implications are very serious: if the welfare question is not resolved, it means that the pressure on the Northern Ireland Executive budget grows considerably and, ultimately, that the Executive will get to a point where they cannot pay their staff and bills, and front-line services will suffer as a result. Without resolving the welfare question, the prospects of corporation tax being devolved and reduced are remote.

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[Jake Berry (Rossendale and Darwen) (Con)]

7. What recent assessment she has made of the political situation in Northern Ireland.

[The Secretary of State for Northern Ireland (Mrs Theresa Villiers)]

The political situation in Northern Ireland continues to be very difficult. It is essential that the current deadlock on welfare reform is resolved so that the Stormont House agreement can be implemented.

[Jake Berry]

What impact does my right hon. Friend think that the failure to implement the Stormont House agreement is having on the international reputation of the Northern Ireland Assembly?

[Mrs Villiers]

I think it does have a negative impact on the reputation of Northern Ireland. Of course it is crucial that we are all promoting Northern Ireland around the world as a great place in which to invest, and part of that is about ensuring we can deliver political stability. That is yet another reason why the Stormont House agreement needs to go ahead.

[Mr Gregory Campbell (East Londonderry) (DUP)]

Does the Secretary of State agree that the current political impasse as a result of two parties failing to implement the Stormont House agreement is costing us about 50,000 private sector jobs, as corporation tax reductions and investment in the likes of the Ballykelly camp in my constituency are being held up?

[Mrs Villiers]

There are the direct consequences that we have talked about before in terms of public finances and the effectiveness of the Executive, but the huge jobs boost that could come with corporation tax devolution is not going to be delivered unless a sustainable budget is settled and welfare reform is implemented.

[Pat Glass (North West Durham) (Lab)]

8. What recent discussions she has had on the security situation in Northern Ireland; and if she will make a statement.

[The Secretary of State for Northern Ireland (Mrs Theresa Villiers)]

The threat from Northern Ireland-related terrorism continues to be severe. It is potentially lethal and it is enduring. It is being suppressed through the hard work of the Police Service of Northern Ireland and MI5, but the need for a high state of vigilance remains.

[Pat Glass]

I have just heard the Minister passing the buck on the cuts to the PSNI, but the situation in Northern Ireland goes on, with 171 bombings, shootings and paramilitary actions in the past year. What is the Minister doing to ensure that the PSNI has the resources it needs to meet this ongoing security situation?

[Mrs Villiers]

The Government have provided £230 million in extra security funding for the PSNI. The primary responsibility for funding the PSNI rests with the Executive, but the Stormont House agreement contains a provision to seek to protect its budget. That is yet another reason why this welfare question must be settled; the PSNI is among other front-line services that will suffer directly if it is not and if the Executive start to run out of money because their budget is unworkable.

[Danny Kinahan (South Antrim) (UUP)]

The residents of Randalstown, Ballyclare and Antrim in my patch are all suffering from the police cuts. Will the Secretary of State guarantee that if the Stormont House agreement—or the welfare agreement—does not happen, sufficient funding will be going through to ensure that we have enough police on the ground?

[Mrs Villiers]

The security situation is one that we monitor at all times, and of course the security implications of the current political impasse will be an important part of our thinking in how we approach it. It is vital that this question is resolved. There is a question for Sinn Féin and the Social Democratic and Labour party: do they want to spend this money on a more expensive welfare system or do they want to fund front-line public services?

[Ian Paisley (North Antrim) (DUP)]

Belfast woman Maíria Cahill was raped by Martin Morris, with his crime being covered over by Padraic Wilson. Both those individuals’ trials have collapsed. Does the Secretary of State agree that there is a worrying trend that legacy cases in Northern Ireland involving senior republicans are not resulting in convictions?

[Mrs Villiers]

It is obviously not appropriate for me to comment on the outcome of a particular court case, but these events were very shocking. This is another reason why it is important to press ahead with the new structures on the past, including the Historical Investigations Unit and the Independent Commission on Information Retrieval, which were agreed as part of the Stormont House agreement, because the current systems are not providing good enough outcomes for victims and survivors. Their interests should be at the heart of the actions of all of us in this House and in the Northern Ireland Assembly.

[Mr David Hanson (Delyn) (Lab)]

9. What steps the Government are taking to ensure that a viable budget can be set by the Northern Ireland Executive.

[The Secretary of State for Northern Ireland (Mrs Theresa Villiers)]

The devolved institutions are responsible for setting a viable budget for Northern Ireland. Under the Stormont House agreement, the Government provided £2 billion of additional spending power to help deal with problems which are specific to Northern Ireland, such as addressing the legacy of its past.

[Mr Hanson]

While respecting the devolution process and the Stormont House agreement, there is still a £600 million potential black hole in the budget. What steps will the Secretary of State take to bring the parties together to resolve that issue?

[Mrs Villiers]

I have an almost continuous round of meetings with the Northern Ireland political parties. I have a review meeting on the Stormont House agreement on Thursday, alongside Minister Flanagan from the Irish Republic. I will be doing everything I can to get the process back on the road, but, fundamentally, it is down to Sinn Féin and the SDLP to live up to the commitments they made under the Stormont House agreement.

[Gavin Robinson (Belfast East) (DUP)]

The Secretary of State will be aware that the Deputy First Minister of Northern Ireland made great play in London at the weekend of how the vulnerable are hurting. Will she remind our Deputy First Minister that the vulnerable have been hurting while we have had an impasse over the Stormont House agreement, and they will continue to hurt should there not be any progress on the issue?

[Mrs Villiers]

The hon. Gentleman is absolutely right that taking an irresponsible approach to the public finances means that the people who really suffer are the most vulnerable in our community. That is why difficult decisions are needed in Stormont to ensure that a sustainable Budget is passed and that the Stormont House agreement is back on track.

The Prime Minister was asked—