(8 years, 7 months ago)
Commons ChamberI fully agree that the devolution of corporation tax to Northern Ireland provides huge opportunities to attract new business and inward investment and to boost the economy. My hon. Friend is right, however, that it needs to be accompanied by broader economic reform, such as a focus on skills, universities and infrastructure.
While the devolution of corporation tax will be important in growing the Northern Ireland economy, does the Secretary of State agree that a vote to leave the EU would help the Northern Ireland economy insofar as it would release £18 billion every year for expenditure on public services, enable us to enter a trade agreement with growing parts of the world and release us from the stifling bureaucracies of Europe?
I am afraid that the hon. Gentleman is tempting me to engage in arguments which will rightly be a matter for everyone in the country when they have an opportunity to vote in the referendum. We promised a referendum in our manifesto, and that is what we are going to deliver.
(8 years, 9 months ago)
Commons ChamberAs I will explain, the primary legislation enabled by the Bill has had extensive scrutiny over the last four years. The Order in Council published alongside the Bill reflects the proposed welfare legislation in the Northern Ireland Assembly that fell as a result of the tabling of a petition of concern. That proposed legislation had a First stage, a Second stage, a Committee stage, a Consideration stage, a Further Consideration stage and a Final stage, and there was an extensive debate on a legislative consent motion. It has, therefore, had extensive scrutiny, including 21 weeks of cross-party talks this year and last year. It is not an ideal way to legislate, but the proposed legislation, at its heart, has had extensive scrutiny.
The Secretary of State has outlined what debate there has already been on the terms of the Bill. Will she accept that one reason for urgency is that, until the Bill is passed, Northern Ireland will continue to lose money by the day to the Treasury by way of payments that have to be made back because of the differences in the welfare arrangements, and the Northern Ireland budget cannot sustain that?
The hon. Gentleman makes a valid point. The difference between the level of benefits in Great Britain and Northern Ireland is £2 million a week, which is a drain on the resources of the Executive that they can ill afford at this difficult time for the public finances. Successive attempts to resolve the welfare question over the last four years have foundered, which has contributed largely to a political crisis in Northern Ireland and the Executive’s finances. By early autumn, it looked increasingly likely that the issue would bring down the devolved institutions themselves. As he points out, this has been costing the Executive money—approximately £2 million a week. That is the difference between what the Treasury is prepared to pay—to fund up to parity with Great Britain—and the cost of continuing to run an old, unreformed welfare system in Northern Ireland. The Executive estimate that the cost to their budget will rise to more than £200 million next year and to more than £500 million a year by the end of this Parliament. That is simply unaffordable, and the figures do not even take into account the costs of IT.
Although welfare is technically a devolved matter in Northern Ireland, up to now it has always retained parity with the rest of the UK and been fully integrated into the UK system, through the Department for Work and Pensions. Once Great Britain moves entirely to the new system, based around universal credit, Northern Ireland will no longer have access to the DWP computer systems on which it currently relies to assess and deliver people’s benefits. It would be left with no option but to devise, implement and maintain an entirely separate and more expensive system and meet the massive costs of the IT needed to support it. For a small devolved Administration, that cost would be prohibitive.
(8 years, 10 months ago)
Commons ChamberMy hon. Friend makes an important point. There is a tendency among some to try to rewrite history. That is something that this Government will never support and will always firmly oppose. There is no possible means by which one could romanticise a campaign that saw thousands of people murdered. That is at the heart of our approach to the institutions on the past to be created under the Stormont House agreement. They must be balanced, objective, fair and impartial to make sure that we establish all the facts about the history of the troubles, and do not enable anyone to seek to rewrite the history of the troubles and to draw some wholly unacceptable form of equivalence between terrorism and police officers.
The report indicates that individual IRA members remain involved in criminal activity and describes a range of acts, from smuggling right up to murder. What it does not say is that those people are defended by Sinn Féin political representatives who eulogise them, discourage people from giving evidence against them, and make excuses for their activities. Does the Secretary of State agree that one of the biggest impediments to making devolution work in Northern Ireland is the ambivalence of Sinn Féin’s political representatives to the criminality of their associates?
I can provide the hon. Gentleman with at least a degree of reassurance on that. Sinn Féin has always been very clear with me that it condemns criminal acts and criminality. It has certainly done that in relation to whoever was responsible for the murder of Kevin McGuigan.
(8 years, 11 months ago)
Commons ChamberI am anxious to see the devolved institutions continue and operate parallel to the talks. I encourage all parties to continue to work constructively. There is an important job to be done in the talks, both within the Executive and beyond, and I will be encouraging all parties to work together to keep the institutions going and to reach a successful conclusion to the talks.
Rather than share the shadow Secretary of State’s belief that some political Kyle Lafferty will pull a match-saver out of the bag, I believe it is more likely, given the attitude of some of the parties in Northern Ireland, that more own goals will be scored during the talks. Will the Secretary of State give us an assurance today that if the rumours circulating at the moment in Belfast are true—that senior people associated with Sinn Féin are likely to be arrested for serious crimes—she will not hesitate to show the red card to those Sinn Féin associates and put them back behind bars, where they should be and from where they have been released under licence?
I thank the hon. Gentleman for his question. I do not think it would be appropriate for me to comment on specific matters relating to what future arrests might take place, but I reiterate that this Government believe firmly in the rule of law. Therefore, if the police have reason to believe that criminal offences have been committed by individuals, they must be allowed to pursue those individuals and bring them to justice, regardless of their political background or political status.
(9 years, 2 months ago)
Commons ChamberI 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.
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?
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.
(9 years, 5 months ago)
Commons ChamberI 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.
(9 years, 7 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I agree with the hon. Gentleman that inquests were a key matter that were considered at great length in the Stormont House agreement talks. Although we could not build a consensus on the way to reform inquests, we did reach a consensus on the fact that the inquest system needs to be reformed because, at the moment, it is not working effectively enough to give proper answers to families. I am working with the Justice Minister and others in the devolved Executive to do everything we can to take that reform process forward; it is vital that we do that. Disclosure was also debated at length, and I can assure the House that the Government are committed to the fullest disclosure in relation to the new bodies to be set up under the Stormont House agreement. But when it comes to onward disclosure, we will of course need to put in place national security measures, which are broadly equivalent to those that apply in respect of current institutions. In conclusion, I wish to pass on my condolences to the O’Connor family, who must have been distressed and upset by recent events.
I am sure that the Secretary of State will understand why the people of Northern Ireland are cynical about her oft-repeated mantra that no one can rely on these letters, when we have already had two people relying on them, and she has indicated today that there could possibly be another 36. Will she tell the House who was responsible for the error, and what the nature of the error was? In that way, we can at least determine whether this was a deliberate action to ensure that a killer was not brought to justice or a genuine mistake.
The Hallett report indicates that the error may well have originated within the PSNI, but we should not rush to judgment on that. As I have said in relation to the John Downey case, wherever the error arose, the problem was that the scheme was not designed to guard against errors or to pick up on them when they were made. The overall responsibility for the errors still rests at ministerial level. There is a consensus on both sides of the House that the Ministers in power at the time need to take responsibility for what happened, even if, at the end of the process, the error may have been made by the PSNI. It is a matter on which we should not rush to judgment. The hon. Gentleman may wish to look at page 108 of the Hallett report to assess how the error occurred.
(9 years, 7 months ago)
Commons ChamberIf the hon. Lady is not feeling sore from some of my remarks, she is more brazen than I thought she was—[Laughter.] As she has not yet heard the rest of my speech, she does not know what I am going to say or the balanced arguments that I am going to make about corporation tax.
Everyone who has spoken so far has suggested that there is widespread support for the Bill in Northern Ireland. That is, of course, not true. The Green party opposes it, but then that party opposes economic growth apparently, according to its latest manifesto. I can understand, therefore, why it would not want to see any measures that would encourage economic growth in Northern Ireland. I do not know how the Green party expects us to tackle our unemployment or standard of living problems with no economic growth, but in any event it opposes the Bill.
The other opponents of the Bill are the trade unions, which are organising a one-day strike against it and other measures some time in March. At the same time as they complain about youth unemployment and the low-wage economy, they oppose a measure that has the potential to address all of those issues and want to strike against it. I do not understand their logic.
The only other party that opposes the measure is the traditional Unionist voice, but I think that is because we support it. That seems to be the rationale for anything it does.
All parties in this House are agreed that tax incentives can be beneficial in stimulating business growth. Some may disagree about the actual form the tax incentive should take or the degree to which it should be used, but there is an undeniable correlation between such incentives—be they small business rates relief, corporation tax reductions or oil industry taxes—and growth. Shareholders are attracted to putting money into businesses, which in turn have more profits to plough back into investment. Tax incentives can also give businesses a competitive edge over those in other countries. That is the rationale behind the Bill and no one can deny that it will have an effect.
In Northern Ireland there is an additional reason to make the change in that we share a land boundary with a country that has had a lower corporation tax rate. Some people say that this will not have a beneficial effect, but it is significant that, even when the Government of the Irish Republic were having to slash public expenditure and incur the wrath of the population by reducing wages in the public sector, putting up taxes, introducing new charges for water and so on, the one area for which they were fiscally responsible and did not make any changes was corporation tax. They had obviously judged that when it came to fighting for business, corporation tax—albeit along with other measures—was a shock and awe tactic they could use to try to attract businesses to the Irish Republic. That is a significant argument.
I have a degree of scepticism about economic modelling. As I am sure the Financial Secretary would tell us, we can put whatever finely tuned assumptions we want into economic models, but they can be upset fairly quickly. In the next 15 years, it is estimated that output in the Northern Ireland economy will grow by 11%, creating about 37,500 jobs. Any economic model must come with a warning that the assumptions on which it is based can change fairly rapidly. However, the estimate has been made using the economic data we have at present: assumptions, past trends, information from other economies and so on. In Northern Ireland, we cannot afford to ignore that estimate, even if it is not totally correct, especially if it will grow the private sector and bring in well-paid, above-average jobs.
We had concerns about a number of issues. We did not want a Bill for people who simply moved their profits to Northern Ireland and did not create jobs. There is no benefit to us in having companies with just a brass plate outside the door, but no substance. I believe the Bill addresses that issue, as much as it can, by indicating that it will benefit trading profits only. In addition, there will be strict investigation by the Treasury of companies who try to move profits. As I understand it, there will be a charge for ensuring that compliance measures are put in place to avoid such scenarios.
If we do that, what about small businesses? Many small businesses, especially in the construction industry, have a substantial amount of work in Great Britain because of the decline in the construction industry. We did not want small businesses to have huge administrative costs imposed on them for differentiating where they made their profits. I welcome the proposal in the Bill that businesses based in Northern Ireland with 75% of their activity and employment there, will be exempt on all their profits. That should cover 99% of small businesses in Northern Ireland so there should not be administrative costs for small businesses.
Oil and gas is excluded from the legislation. I hope that very shortly, despite the endeavours of the Social and Democratic and Labour party Environment Minister, we will have a substantial oil and gas industry that can exploit the shale gas resources that we believe are buried under the ground in Northern Ireland. There may be some who play the populist line and say, “Let’s just keep those resources there. After all, they’re nasty CO2-producing fossil fuels.” I want them to be exploited for the benefit of the people of Northern Ireland and the United Kingdom. The profits from those companies would not currently be subject to the corporation tax arrangement, but I hope that if and when we develop such an industry, Northern Ireland will benefit from the kinds of promises that have been made to the north-east of England, including a sovereign wealth fund to take in part of the profits from those businesses and plough them back into public expenditure projects. I understand, however, why that has not been included at present.
On financial sector profits, there were two issues. I was not all that supportive of the argument about why those nasty banks, who nearly destroyed our economy, should benefit from reductions in corporation tax, paid for by reductions in the block grant. I understand the emotional rhetoric in that argument, but I am more concerned that the profits of banks and other financial institutions are much more volatile and more easily moved without detection than the profits of manufacturing or other companies. One has only to look at the difference between 2007-08 and 2008-09, when banks’ profits changed from £255 million to £45 million. That kind of volatility in tax revenue was a compelling reason why we should not include the profits of financial institutions in the Bill. I am glad that the Government have responded to that.
I very much welcome the hon. Gentleman’s remarks. It is important to bear in mind that certain activities relating to banks and financial services can fall within the scope of a new Northern Ireland rate, in no small part because of the election provisions in relation to back-office functions. For example, the kind of work that is currently done in Northern Ireland by Citigroup could fall within a new reduced Northern Ireland rate.
That was exactly the point I was going to make. Having said that there are exceptions to this, the exemptions are important because one of the fastest-growing sectors in the higher wage end of the Northern Ireland economy has been those back-office financial services jobs. We would not want to lose the ability to attract them. There is provision in the Bill to allow for that. Whether they are brought as separate or spur companies to the main company, they will nevertheless be subject to the new regime.
There are some dangers. One danger we have heard about time and again—it was alluded to by the shadow Secretary of State—is the potential loss of public sector expenditure. Under the Azores ruling, we will have to pay for whatever the forgone revenue happens to be. That will depend on the rate we eventually set. At maximum, it could be about 3% of the current revenue budget available to Northern Ireland. In the current circumstances, to try to find that immediately would be very difficult, which is one reason why the decision to introduce this will not be implemented until at least 2016-17. That will give the Executive time to plan.
We must remember, however, that the reduction in the block grant and money available for public expenditure in Northern Ireland will be offset by the expansion in other parts of the economy. Yes, that is a gamble, but can we politicians in Northern Ireland sit on our hands and do nothing, knowing that public expenditure is going to tighten, regardless of whether there is a Labour or Conservative Administration, given how heavily reliant we are on public expenditure? That would be wrong. The shadow spokesman wants to know the reason for my alleged conversion. This is one of the issues to weigh in the balance. Can we just drift along, knowing that regardless of which party is in government at Westminster the public sector is going to contract, and make no provision for expanding the private sector?
(9 years, 7 months ago)
Commons ChamberThese are hugely sensitive issues and these matters have been under discussion in various forums for many years, and the proposal to have a broader civic conversation and debate about finding a way forward is a good one. The hon. Gentleman will be aware that it was first proposed by Dr Richard Haass in the work that he and Meghan O’Sullivan did. We simply do not have all the answers on how all these matters need to be resolved. Including as many people as possible in finding a way forward on these sensitive and crucial questions of identity is an important step towards that.
The additional money made available to Northern Ireland through flexibility and borrowing, and the extra money for the additional institutions, will be welcome. Despite what the hon. Member for Reigate (Crispin Blunt) said in his little Englander outburst, which helps nationalism more than the nasty nationalists of this House do when it comes to the break-up of the Union, this is something that Northern Ireland needed.
The important thing is to rebalance the economy as well. Will the Secretary of State spell out for us what exactly she means when she says that the Government will use their “best endeavours” to get the legislation on corporation tax through Parliament? Does that mean that that might not happen, and if not, why can she not give total clarity that the legislation will go through before the end of this Session?
As I have said before, the reality is that introducing legislation at this stage of a Parliament runs the risk of running out of time for it, in which case we become dependent on the Opposition for getting it through. We will try to speed it through as best we can, assuming that the Northern Ireland Executive do their bit. We had hoped to introduce the legislation in December, in which case we would have been pretty confident of getting it through on time without the support of the Opposition. Given the delay of a few weeks, it is more uncertain. That is why I put the question I did to the shadow Secretary of State, but we will certainly try our very best to get this legislation on the statute book.
(9 years, 8 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I agree that the credibility of the institutions is on the line. If the Assembly cannot get its budget right, it is very difficult for it to perform its basic functions, and it would be in for significant criticism if it cannot resolve these matters. As to the hon. Lady’s comment that the parties recognise the importance of delivery, and her question about whether they have the will to do it, I hope they do and I believe they do. Time is running out. It is crucial that we seize this opportunity because we will not get another one for months, if not years, to come.
The main reason that the talks failed this week was Sinn Fein’s deluded belief that Northern Ireland should be totally exempt from the implications of UK budgetary policy and welfare reform. Will the Secretary of State confirm and put it on the record for those head-in-the-sand ostrich economists who advise Sinn Fein that if Northern Ireland wishes to deviate from the welfare reform package which is available in the rest of the United Kingdom, that money must be found from the Northern Ireland block grant and there is no additional money available?
Yes, I can certainly do that. There will be no new money for welfare reform.
(9 years, 10 months ago)
Commons ChamberOne of the main ways in which we can help is through the tax system. That is why we have cut corporation tax, which will be the lowest in the G20 by April, and why we are cutting job taxes for employers for the benefit of, in particular, young unemployed people. We think that it is vital for more people to have the security of a pay packet to take home to their families, and our tax policy has been driven by that.
10. What the cost to her Department was of the Parades Commission in each of the last five years.
The cost of the Parades Commission was £1.01 million in 2013-14. In the preceding four years it was £1.37 million, £0.93 million, £1.07 million and £1.01 million respectively.
Rather than reducing the tension surrounding parades, the Parades Commission has actually contributed to further tension because of its bias against the Orange Order, its incompetence, and its propensity to give in to republican protesters. Does the Secretary of State agree that we now need a root-and-branch change in the way in which contentious parades are dealt with in Northern Ireland?
The Parades Commission faces a hugely difficult task in adjudicating on highly sensitive parades, and I think that it performs that task well. If the political parties in Northern Ireland want a different system for parading, that is open to them, but the only way in which to achieve that is to get round the table and consider future reform in the cross-party talks that are now under way.
(10 years, 1 month ago)
Commons ChamberI can assure the hon. Gentleman that I will take whatever steps are necessary to remove barriers to prosecution, based on the advice I am given by police and prosecutors. We will do everything possible to ensure that we do not see a repeat of the collapse of the Downey trial in another instance.
The report makes it quite clear on the cover-up of this scheme that the authors and indeed the former Prime Minister and Secretary of State—appallingly—made representations about murderers not being prosecuted. The least we could have expected from the shadow Secretary of State today was an apology, instead of which we got a brazen defence. The Minister has at least apologised for the way in which the scheme was administered, for the ambiguity, and for the fact that the Northern Ireland Assembly and Executive were not informed. Will she now go further and assure us not only that will cases be left open but that she will be request from the police that everyone who has been issued with a letter will have their case reinvestigated, that new intelligence will be sought and that new investigative channels will be looked at so at least the victims can be sure that those who have received these letters will not be able to live in comfort for the rest of their lives?
Let me take this opportunity to repeat the apology that I gave for the lack of transparency and the failure to discuss this scheme. I repeat my concerns about the way in which this scheme as a whole was run, including under my predecessors. I think that has been the cause of much of the distress to victims. The hon. Gentleman asks about the exact steps that will be taken to ensure that errors are corrected and problematic cases dealt with. I counsel against statements of that sort at this stage. We need to be careful to ensure that there is nothing that could be said in haste, which might end up hindering rather than helping a future prosecution. As soon as I am able, I will give further information on how we intend to implement the recommendations. Today, we need to be careful about commenting on specific cases and how they will be dealt with.
(10 years, 1 month ago)
Commons ChamberThe Government are working closely with the Northern Ireland Executive on economic matters. Following the economic pact we signed last year, we have recently published an update demonstrating achievements on improved lending to small businesses—that is up 46% on last year—and we have got the enterprise zone set up, and access to finance initiatives from the business bank are also helping to restart the economy in Northern Ireland. Securing 100% assisted area status for Northern Ireland is also hugely helpful to Invest NI in attracting inward investment.
The economic package agreed between the Prime Minister and the Northern Ireland Executive is now a year old. It was designed to rebalance the economy. What specific measures in that package have now been implemented that will assist in attracting inward investment, dealing with youth unemployment and rebalancing the economy?
There are some which I just mentioned; the specific inward investment conference attended by the Prime Minister, which prompted 800 new jobs at Convergys and EY; the banking transparency measures, which were a specific ask of the business community—we now have details of lending to small and medium-sized enterprises published for the first time in Northern Ireland; the enterprise zone has been set up; we are pressing ahead with projects from the green investment bank on anaerobic digestion in parts of Northern Ireland; and we are pressing ahead with a UK-Ireland visa system, which means that business people from China and India can visit our two countries with just a single visa, thus encouraging tourism, business links and inward investment.
(10 years, 7 months ago)
Commons Chamber5. What recent discussions she has had with the Chief Constable of Northern Ireland on public order in Northern Ireland.
Public order issues are primarily a matter for the Justice Minister and the Chief Constable, in line with the devolution settlement. However, I meet them both regularly to discuss a range of issues, which often include public order matters.
Does the Secretary of State share the concern felt by many people in Northern Ireland about the apparently partisan way in which the PSNI has dealt with public order offences? On the one hand, members of the loyalist community who have been involved in street protests have been arrested, had their homes raided, been refused bail, and gone to jail; on the other hand, a prominent Sinn Fein Member of the Legislative Assembly who obstructed the police and encouraged others to attack them was merely given a warning. Does the Secretary of State not agree that public order offences must be dealt with firmly but also evenly, because otherwise confidence in the police will be lost?
(10 years, 7 months ago)
Commons ChamberThe UK Government have always made it clear that we would never find it acceptable for someone to draw equivalence between those who sought to undermine and destroy the rule of law through terrorism and those who sought to uphold it as members of the security forces. However, a lot of progress has been made on the proposals about the past—far more than most people expected. To make that progress and build up such a degree of consensus in just four months is encouraging. Some elements of what is in the Haass proposals are difficult, so I understand concerns about them, but this is an important opportunity to grasp and there is scope for compromise. The UK Government are prepared to be part of that compromise and we encourage the parties to continue to work on these matters.
May I also join in the tributes to Paul Goggins? Unlike many Ministers who, when they leave Northern Ireland, forget all about the place, Paul was always interested and wanted to hear what was going on, which I think was an indication of the genuine interest he had in the job he performed in Northern Ireland.
Given the wide range of opinions and the deeply held views that were discussed in the Haass talks, does not the Secretary of State agree that no deal was better than a deal that would have exacerbated the divisions in Northern Ireland? While, as politicians and as a society, we have to continue to work at the issues, does she not agree that the best way of undermining those who want to wreck Northern Ireland is to change our education system, get young people into jobs and have a robust economy, rather than implement quick-fix solutions that simply involve more quangos and legislation?
If any deal is to work, it is important that it commands a broad consensus. If we are to reach an agreement, some difficult decisions may be needed to get the compromises that are necessary. I agree with the hon. Gentleman that as well as working on the Haass issues, important though they are, it is crucial that efforts continue to be made to improve education in Northern Ireland, to boost the economy and to deal with all the other challenges with which the Northern Ireland Executive continue to grapple.
(11 years, 5 months ago)
Commons ChamberThe Government are fully committed to their welfare reform programme. We believe that welfare reform is essential to ensure that work always pays. We believe that it is deeply irresponsible for Her Majesty’s Opposition to continue to oppose all the reforms of welfare, which are designed to get the welfare bill down. That spiralled under their tenure of the economy.
Like many other peripheral regions of the United Kingdom, Northern Ireland has suffered most during this recession. We understand that reckless expenditure will damage the economy, but would the Secretary of State support the calls by all the regional administrations in the United Kingdom for a fiscal stimulus for capital expenditure, which will create short-term jobs and increase the economy’s capacity in the long run?
As Finance Minister for the Northern Ireland Executive, the hon. Gentleman has options available to him within the block grant, which he receives under the Barnett arrangements; his grant remains considerably higher than the UK average. We are happy to continue to work with him and his colleagues in the Executive to generate inward investment for Northern Ireland and to ensure that our macro-economic policy, for example, on reducing corporation tax, is delivering the maximum benefits possible to rebalance the Northern Ireland economy.