Theresa Villiers
Main Page: Theresa Villiers (Conservative - Chipping Barnet)Department Debates - View all Theresa Villiers's debates with the Cabinet Office
(9 years, 9 months ago)
Commons Chamber3. When she plans to make a progress report on the Government’s economic pact for Northern Ireland.
An annual progress report on the economic pact was published last July. The range of items so far delivered include improvements to business access to finance; funding projects secured from the Green Investment Bank; the continuation of 100% assisted area status for Northern Ireland; and a record year for inward investment following the G8 and follow-up investment conference.
With one in six people in Northern Ireland on low pay and intergenerational poverty remaining stubbornly high, should not the Government be getting a move on to raise the minimum wage to at least £8 an hour and get as many people as possible on to the living wage to make this a recovery in living standards for all the people of Northern Ireland?
The hon. Gentleman will be aware that my right hon. Friend the Chancellor said he would like to see increases in the minimum wage. We are cutting taxes for those on the lowest incomes. We have cut taxes for 670,000 people in Northern Ireland, and those on the minimum wage have had their income tax bills halved. We have also seen unemployment in Northern Ireland fall for the 25th consecutive month—it has fallen by 1,700—giving many more people the security and reassurance of a pay packet.
Will the Secretary of State meet the Northern Ireland union leaders, as I did recently, so that she can understand the frustrations of squeezed teachers, bus drivers and health workers, and praise their vital work rather than condemn them for being forced to vote for industrial action?
I have met trade union groups on various occasions, including in Northern Ireland, and I am of course hugely supportive of the work done by our public servants and our front-line workers. It is important that the whole public sector takes part in the austerity programme, and the Government are doing everything they can to put our public finances right to ensure that we can continue to provide the best possible public services for the country.
What impact does the Secretary of State think another round of stalemate at Stormont will have on measures to attract investment and encourage growth in Northern Ireland?
There is no doubt that the announcement by Sinn Fein on Monday was a significant setback for the Stormont House agreement, but it is inevitable that there will be bumps in the road with agreements of this nature. That has been the case in the past. I will be working hard to get things back on track and to help the parties get this matter resolved. Political stability is, of course, crucial when it comes to attracting inward investment. That is one of the many reasons why we need to press ahead with implementing the Stormont House agreement.
Does the Secretary of State accept that people in Northern Ireland and those who observe the Northern Ireland political scene are stunned, bewildered—and, indeed, angry—at what Sinn Fein has done in reneging on its agreement on welfare reform, without any good reason whatsoever? Does the Secretary of State wish to spell out now from the Dispatch Box the implications for corporation tax and other issues of the Stormont House agreement not proceeding? It is clear that Sinn Fein is putting its own narrow party interests ahead of vulnerable people and the entire community in Northern Ireland.
As I have said, this is a serious setback. I believe that Sinn Fein’s change of mind is unhelpful and hugely disappointing. As I have said, however, the task now is for the Northern Ireland Executive parties to continue their efforts to implement the Stormont House agreement. I hope to get the party leaders together as soon as possible to discuss how to resolve this welfare question, but the Stormont House agreement will not be reopened; we need to press ahead with implementation. The corporation tax question is difficult. It is expressly linked with the resolution of welfare reform. The Bill contains a commencement clause, and there is no question but that this welfare issue must be resolved. The Executive must fulfil their obligations under the Stormont House agreement before the commencement clause can be operated. In the interim, the Government propose to continue with the legislation and to complete its parliamentary progress, because we are determined to implement the agreement fully and fairly. Let me be clear: Northern Ireland will not get these devolved powers until the Stormont House agreement has been implemented.
It is important now that people in Northern Ireland, this House and everybody looking at the political scene are clear that the responsibility for the current crisis lies squarely with Sinn Fein, which is reneging on its commitments clearly made and openly expressed in the Stormont House agreement. Will the Secretary of State be clear that she will not take this blanket condemnation or blame approach, but focus on the problem—Sinn Fein?
I will indeed focus on the problem. The right hon. Gentleman is right that this current setback is the result of the actions of Sinn Fein, which is, as I have said, hugely disappointing and unhelpful. To be honest, it was a significant surprise, too, given the enthusiasm with which the Deputy First Minister and Sinn Fein were promoting the agreement. Now I think we all need to work together to try to get this sorted, because it would be a huge step backwards if the Stormont House agreement were to be jeopardised. It would potentially plunge us back into the sort of budget and political crisis with which we were grappling last year.
May I, on behalf of my party, associate myself with the tributes paid to Lord Molyneaux of Killead, and convey our condolences to his family, friends and colleagues?
Given the need to create economic and political stability in Northern Ireland, will the Secretary of State prevail on the Chancellor to reduce VAT on United Kingdom tourism products in next week’s Budget? That would have important financial consequences for the tourism industry in Northern Ireland.
Let me also take the opportunity to associate myself with the comments of the right hon. Member for Lagan Valley (Mr Donaldson) and my hon. Friend the Under-Secretary of State about the distinguished record of Lord Molyneaux. He was indeed a very distinguished parliamentarian over many years, and this is a sad loss to Northern Ireland.
The Chancellor is well aware of the campaign for the tax change that the hon. Lady would like to see. Tax reductions are difficult because the imperative must be repairing the public finances, but the Chancellor has relieved tax burdens on business by reducing corporation tax, introducing an employment allowance and, of course, helping people into work.
May I associate my party with the comments that have been made about Lord Molyneaux?
As the Secretary of State has said, economic progress and political stability in Northern Ireland are inextricably linked. Does she agree that the unravelling of the Stormont House agreement would be an unmitigated disaster for economic and political confidence in Northern Ireland, and that now is the time for responsible leadership which accepts the need for a reformed welfare system that mitigates the impact of cuts on the most vulnerable while also being affordable and sustainable?
I very much agree with the hon. Gentleman. Now is the time for level-headed consideration of how we can resolve this matter. In the autumn, Northern Ireland faced a budget crisis that was so serious that the very sustainability and future credibility of the institutions was at stake, and we were looking over a cliff at the possibility that devolution would collapse altogether. Returning to that position would be a huge step backward. The Stormont House agreement was a big step forward, and it is vital for all parties to work to ensure that it is implemented fully and fairly.
As I said earlier to the right hon. Member for Belfast North (Mr Dodds), I expect to meet the five party leaders in the coming days. I hope to do so tomorrow, but that will depend on when the First and Deputy First Minister return from New York.
It is vital for progress to be made on welfare reform. That is a key part of the Stormont Castle and the Stormont House agreements. I will press for such progress, not least because without it the Northern Ireland Executive’s budget will become unsustainable, which will hugely impair its ability to function effectively.
4. What assessment she has made of the current political situation in Northern Ireland.
7. What assessment she has made of the current political situation in Northern Ireland.
The political situation suffered a setback on Monday following Sinn Fein’s withdrawal of support for the Welfare Reform Bill. It is very important for the Stormont House agreement to be implemented fully and fairly, including all the sections on welfare and budgets. I will continue to work intensively with the Northern Ireland parties to resolve the impasse.
What does the Secretary of State consider to be the wider political implications of Sinn Fein’s withdrawal of support for the welfare proposals?
The political implications are very serious. They put in jeopardy corporation tax devolution, a financial package of about £2 billion in extra spending power, and a fresh approach to the past which is designed to produce better outcomes for victims and survivors. All that is under threat as a result of what has happened this week, and I will do all that I can to retrieve the situation so that the Stormont House agreement can go ahead.
Does the Secretary of State agree that Her Majesty’s Government must take resolute action against Sinn Fein over its irresponsible and selfish behaviour, which is jeopardising the Stormont Parliament and everything that has been achieved in Northern Ireland so far?
As I said, the approach taken by Sinn Fein is hugely disappointing and dramatically different from everything that it has been saying over the past few months. I am urging Sinn Fein to change its approach. It is vital that we have a responsible and realistic approach to welfare. The welfare reform package agreed under the Stormont House agreement is a good one, a generous one and a fair one, and therefore it is vital that it is implemented.
May I wish all my friends in Northern Ireland the very best for the future? People often take for granted the peace and stability that has been secured in Northern Ireland since the 2007 agreement, but that was won only after conflict, terror and hatred going back centuries, through very difficult negotiations. It took dedicated skill and constant strong leadership by the Labour Government to achieve it. Does the Secretary of State accept that maintaining that progress requires nurturing by this Government and by any Governments to follow?
I do accept that. This Government will continue to do all they can to support and nurture that political settlement. That is a message that all parties need to hear, including Sinn Fein—that we should not take risks with political stability in Northern Ireland, because the consequences could be very grave.
Does the Secretary of State recognise that it is not just Sinn Fein, but their lapdogs in the Social Democratic and Labour party who have blocked welfare reform in Northern Ireland and put the Assembly in jeopardy? Will she spell out the consequences for corporation tax, the economic package and the long-term sustainability of the budget in Northern Ireland as a result of that irresponsible behaviour?
If this question is not resolved, if the welfare reform legislation remains permanently stalled, obviously the rest of the Stormont House agreement does not happen. That includes the financial package and the devolution of corporation tax, but we are not at that point yet. It is important to work intensively, and in the meantime the UK Government will do everything we can to continue to implement the agreement.
The Secretary of State will be at pains not to feed the sense of impasse that surrounds the Stormont House agreement. She knows that there were two elements to the understanding on welfare reform—one was the understanding about the amount of money from the Executive’s budget that could mitigate measures; the other was the degree of leeway within the welfare spending. Has anything changed in the lines from the Department for Work and Pensions that have given rise to the allegations that Sinn Fein is making against the Democratic Unionist party?
I agree with the hon. Gentleman that we need to do all we can to keep the situation as calm as possible. Unfortunately, episodes of this kind are characteristic of the implementation process of agreements. It will be helpful for as many facts as possible to be made clear about how the welfare reform programme will operate in Northern Ireland and how the top-ups will operate. It is a generous package, and once the details are clear I hope everyone will be convinced of that.
At this, the last Northern Ireland questions before the election, there is an air of some melancholy. Who knows where we will meet again or on what side of the Dispatch Box? May I ask the right hon. Lady what, in her three years as Secretary of State, in which she has been unfailingly courteous, she would consider her proudest—her finest—achievement?
Up to Monday, I would have said the Stormont House agreement—[Interruption]
Order. The hon. Member for Ealing North (Stephen Pound) asked a question. I want to hear the Secretary of State’s answer, and she is entitled to have her answer heard.
Up until Monday, I would have said the Stormont House agreement. I think that is still the greatest thing that I have contributed to and it is still on the road. We have had a bump on the road, but the Stormont House agreement will carry on. The other thing of which I am proud is the progress that we have made towards devolution of corporation tax. I do not want to see that thrown off course by events that have taken place this week.
5. What further steps the Government plan to take to resolve outstanding issues relating to flags and parades.
9. What further steps the Government plan to take to resolve outstanding issues relating to flags and parades.
The Stormont House agreement identified a clear way forward on parades and flags. [Interruption.] The Government will continue to work with the five parties in the Executive on the implementation of all the provisions of the agreement, including on these issues. [Interruption.]
I thank the Secretary of State for that answer, although I must admit I had trouble hearing it. Unrest around the parades has an unsettling impact on the community, on local businesses and on tourism. What steps are the Government taking this year to try to ensure a peaceful parade season?
I urge everyone involved in parades or parades-related protest to ensure that all activity related to parades and protest is both peaceful and lawful and that the determinations of the Parades Commission, as the lawfully constituted authority, are complied with. I continue to have a series of meetings to try to find a way forward on the parading impasse in north Belfast.
In Belfast, my right hon. Friend the Member for Doncaster North (Edward Miliband) recently said that securing the peace process and a strong economy went hand in hand. Does the Secretary of State agree, and will she support the Heenan-Anderson commission to ensure that people at the margins are not drawn to violence on issues such as flags and parades?
I agree that politics and economics are intertwined in Northern Ireland. Political stability is crucial for a successful economy. I note the Labour commission on this, but I think the crucial thing is to stick to the Government’s long-term economic plan, because that is delivering economic recovery in Northern Ireland.
Does the Secretary of State recognise the feeling of injustice in the Unionist community on the issue of parades? In my constituency we have waited 16 years to get a return parade—a church parade. When are we going to get a resolution?
I am very conscious of the concern felt in the community in the hon. Gentleman’s constituency. It is crucial that the Parades Commission’s determination needs to be abided by, but it is also important to press ahead with a reformed and devolved system of parades adjudication, as envisaged by the Stormont House agreement.
6. What steps the Government are taking to reduce the cost of living in Northern Ireland.
8. What recent progress has been made on the status and operation of the National Crime Agency in Northern Ireland.
I welcome the vote in the Assembly that will enable the full operation of the National Crime Agency in Northern Ireland. This will ensure that the people of Northern Ireland are afforded the same protections from serious and organised crime as those in the rest of the United Kingdom.
When the NCA is up and running in Northern Ireland, will my right hon. Friend speak via the Chief Constable to ensure that the agency investigates the destination of funds from serious and organised crime? Many of the serious and organised criminals in the border area are the people giving funds to the IRA, and it is important that those funds do not fund political parties.
I am sure my right hon. Friend will understand that I cannot comment on individual cases, but I know that the full implementation of the NCA in Northern Ireland is a welcome step. I pay tribute to the Justice Minister and others for securing that result, and I know that they will bear down on all the perpetrators of such activities and on any who receive the funds that those activities create.
Thank you, Mr Speaker. Will the National Crime Agency specifically target the organised criminal gangs that are engaging in subterfuge and in the organised criminal activity of fuel laundering along the border areas of Northern Ireland?
That is a significant problem, and the House will have the chance to debate it later. Significant cross-border co-operation is under way, and the authorities in Her Majesty’s Revenue and Customs and the police services on both sides of the border are determined to tackle the problem and bring the perpetrators to justice.