PARLIAMENTARY DEBATE
Northern Ireland Executive Formation - 31 January 2024 (Commons/Commons Chamber)
Debate Detail
This Saturday would mark two years without a fully functioning devolved Government in Northern Ireland. That is two years without locally elected Ministers able to take important decisions on Northern Ireland’s schools and hospitals and the broader economy, and above all, it is two years in which Northern Ireland has been held back from achieving the massive potential of this unique part of the United Kingdom.
It was nearly two years ago that the then First Minister resigned over the old Northern Ireland protocol. The Government recognised that the protocol did not deliver to the people of Northern Ireland the same freedoms that leaving the European Union delivered for the rest of the United Kingdom. As the party of the Union, this Conservative Government have sought to address those concerns by replacing the protocol with the Windsor framework. I maintain that the Windsor framework was, and is, a good deal for Northern Ireland that addresses the issues around the old protocol and sets out a new way forward. However, it alone did not prove sufficient to allow the devolved institutions to function with the cross-community support that is such an essential bedrock of the Belfast/Good Friday agreement.
As such, for the past few months, my team and I have been holding discussions with the Northern Ireland political parties on how we could see the return of devolved institutions. Those discussions have been long and necessarily tough, but that is testament to the patience of all Northern Ireland’s political leaders, who—as I have seen at first hand—work tirelessly to make sure that Northern Ireland is the most prosperous and safe society it can be. One of the people I have been talking to most is the hon. Member for Belfast East (Gavin Robinson). It has been a pleasure to work with him on these matters, and it was also a pleasure to confirm recently that the Government will support his Bill that seeks to create a dedicated route for eligible Irish nationals who wish to apply for British citizenship. If passed, that legislation would support the close historical and geographical ties between Ireland and the UK, and I commend him on championing that cause.
I am also pleased to be able to outline today the package of measures we are announcing, which has four key elements. First, it further protects Northern Ireland’s place in the United Kingdom by demonstrating our commitment to restoring power sharing so that it has the broadest support from across the community in Northern Ireland. I know that I am not alone in believing firmly that the long-term interests of the Union are served by persuading those who might not vote for Unionist parties, or even think of themselves as Unionists, that Northern Ireland within the United Kingdom offers the best solution for them and their children. I have always believed that making Northern Ireland work—indeed, making Northern Ireland thrive—is the surest way to safeguard the Union, and I commend all Unionists on taking bold steps to make that case for the Union, too.
We will also legislate to reaffirm Northern Ireland’s constitutional status, including as reflected in the Acts of Union. We will also recognise in domestic law that, with the vital democratic safeguard of the Stormont brake that a new Assembly would wield, the idea of automatic and permanent dynamic alignment of EU law no longer applies. We will also future-proof Northern Ireland’s position within the UK’s internal market against any future protocol that would create a new EU law alignment for Northern Ireland, and with it, barriers between Northern Ireland and the rest of the United Kingdom.
Secondly, the deal promotes and strengthens the UK internal market, delivering new legislation to guarantee and future-proof unfettered access for Northern Ireland goods to the whole of the UK internal market, and ensuring that internal trade within the United Kingdom takes place under a new UK internal market system. Only yesterday, we saw how quickly progress has been made, with a joint legal solution reached with the European Union on tariff rate quotas. That solution, which will be taken forward at the next UK-EU Joint Committee, will ensure that Northern Ireland traders can benefit from the UK’s independent free trade policy when importing agrifood goods, reflecting Northern Ireland’s integral place in the UK’s customs territory. To maintain that focus on delivering in the interests of businesses for the future, we will put in place new structures, such as a new independent monitoring panel to ensure a practical and pragmatic approach without gold-plating.
Thirdly, the deal will recognise the importance of the connections across the United Kingdom, now and in the future. A new UK-wide east-west economic council will bring businesses and Ministers together to identify the opportunities that unite us across all parts of the United Kingdom, and a new body—InterTrade UK—will promote and facilitate trade within the United Kingdom, recognising that while international trade is important, so too is the vital trade that occurs within our internal market.
Finally, the deal will help put Northern Ireland’s public services on a sustainable footing, with funding totalling over £3 billion to support public services in Northern Ireland and provide a solid foundation for the Executive to deliver better outcomes in the day-to-day lives of the people in Northern Ireland. That funding is part of a financial package I announced before Christmas that will help address public sector pay pressures; provide an updated Barnett formula for Northern Ireland, now and into the future, reflecting the needs and unique circumstances of the people of Northern Ireland; and give the Executive significant funding to stabilise public finances.
Much of what I am announcing today is the result of a significant period of negotiations between the Government and the Democratic Unionist party, led by the right hon. Member for Lagan Valley (Sir Jeffrey M. Donaldson). Many of us in this Chamber last week could not have failed to be struck by his unshakeable advocacy on behalf of the Unionist cause. That same determination, fortitude and tact was at the heart of his approach during those detailed discussions, and further to the right hon. Member’s comments in this place last week, I am absolutely sure that the whole House will join me in expressing support for him in utterly condemning those shameless figures who have tried to threaten and intimidate him for simply doing his job. [Hon. Members: “Hear, hear.”] The right hon. Member is a man who is truly committed to Northern Ireland. He is truly committed to the Union, and has always worked hard to find solutions and improvements when others have taken the far easier path of simply criticising and heckling from the sidelines.
The result—as I hope hon. Members will agree—is a deal that, taken as a whole, is the right one for Northern Ireland and for the Union. With this package, it is now time for elected representatives in Northern Ireland to come together, end the two years of impasse and start work again in the interests of the people who elected them. This week, the right hon. Member for Lagan Valley was clear that this depended on the Government demonstrating their commitment to the Union, not just in word but in deed. That is exactly what we will do. Today, I am publishing the details of the deal, but I am also laying before the House the statutory instruments that enshrine several of its commitments in law. Those instruments will be debated in this place tomorrow, subject to a change in its future business with the will of the House, as an immediate show of good faith.
Once those instruments are passed by this House, as I hope they will be, I trust we will have the conditions to move onwards and to see Ministers back in post in Stormont swiftly. As those Ministers take their places, they will face massive challenges, but they have the tools to grasp those challenges, not least in moving to resolve the public sector pay issues that have been so disruptive. They will also be able to grasp the opportunities offered by Northern Ireland’s unique economic position and the good will that it enjoys across the world.
It is only right that I acknowledge that, for many in the community, an important part of this will be seeing Michelle O’Neill take her place as First Minister following the democratic mandate she won at the May 2022 Assembly election, recognising that the First and Deputy First Ministers remain equal in law. I look forward to working with the new First Minister and Deputy First Minister and all their colleagues in the Northern Ireland Executive to improve the lives of people from all backgrounds, whether Unionist, nationalist or other. As we move forward swiftly to give effect to our commitments, I urge the parties to do the same thing by notifying the Speaker of the Northern Ireland Assembly to recall Stormont, electing a First Minister and Deputy First Minister, and appointing new Ministers to the Executive.
It is time to build on the progress of the last 25 years. Today, we have presented a plan that will deliver the long-term change that Northern Ireland needs. It will strengthen Northern Ireland’s place in our Union and guarantee the free flow of goods across the entire United Kingdom. It is only by sticking to this plan that we will become a more united and prosperous country together, and I commend this statement to the House.
This is a very significant moment. It is our chance to restore to the people of Northern Ireland what they desperately need but have been without for almost two years: a functioning Government. It will also mark a first in Northern Ireland history when Michelle O’Neill takes up her position as Sinn Féin First Minister in a power-sharing Government with a DUP Deputy First Minister. I would like to thank the Secretary of State for his tireless efforts that have brought us to this point. His is a great achievement.
I would like to acknowledge the courageous and decisive leadership of the right hon. Member for Lagan Valley (Sir Jeffrey M. Donaldson), who in the face of abuse has consistently and persuasively made his case for change, while always being clear that he wanted to return to government with an agreement that was acceptable to all communities. I also want to thank the other party leaders in Northern Ireland—and I join the Secretary of State in doing so—who, with great wisdom, have allowed the time and the space for this deal to be reached, as well as to express my thanks to all the officials involved.
On the legislative changes that the right hon. Gentleman the Secretary of State has set out, I welcome the Government’s commitment not to ratify any new Northern Ireland-related agreements with the EU that would create new regulatory borders. This will be a helpful brake on divergence. Could the Secretary of State say when the new UK internal market lane will come into being?
We will of course examine in detail all the proposals in the statutory instruments to which the right hon. Gentleman referred—I understand that we are likely to debate them tomorrow—because we need to get on with this so that the Assembly can be recalled and the Executive established as quickly as possible. I have always made it clear that we believe in Northern Ireland’s place in the internal market of the United Kingdom, and that we support any practical measures to reinforce it that are consistent with the Windsor framework, which we also support, and that have the support of nationalists as well as Unionists. On that basis, we will vote for the legislation.
The money that the Secretary of State has announced, including the needs-based funding formula and the stabilisation funding, will enable a restored Executive and Assembly to give public sector workers a pay rise, for which they have waited too long, and to start to tackle the huge challenges facing communities and public services and make the most of the great economic potential of Northern Ireland. We also welcome the plans to defer and then write off Stormont’s overspend, provided that the Executive produce a new fiscal sustainability plan. How quickly does the right hon. Gentleman expect the money to be transferred, and when does he think the new Executive will produce a budget?
Finally, as we reflect on the importance of this moment, since the Good Friday agreement was signed the people of Northern Ireland have been without a devolved Government for over a third of the time. Does the right hon. Gentleman agree with me that we need to work together—all of us in the House—to prevent the institutions from collapsing again in the years ahead? Stability is everything, especially to the people of Northern Ireland after all they have been through, and we all have a duty to ensure that it endures.
The shadow Secretary of State is completely right that everyone in this House will need to work together to ensure stability for Northern Ireland and to ensure that the institutions do not fall again. It is vital that we all understand the responsibility that sits with us in this place: we are guarantors of the Belfast/Good Friday agreement. We have a responsibility to the people of Northern Ireland, and in every way we should consider that in everything we do, because this Union is stronger for it.
The shadow Secretary of State asked some questions. We hope to have the UK internal market lane in operation as soon as possible, and we obviously need some legal changes—I mean, other changes—to have that done. The money will flow as soon as the new Executive is up and running, and I very much hope that a new Executive will be sitting very soon.
I am particularly pleased that the Command Paper incorporates many of the sensible recommendations from the hon. Member for Belfast East (Gavin Robinson), which we share, on further legislation to make sure that the position of Northern Ireland within the UK internal market is absolutely cemented. I am particularly pleased that the Command Paper looks forward to new investment—not just the important investment in public services, but the enhanced investment zone proposal of £150 million, which will be at the centre of how we attract new inward investment to realise the huge potential that Northern Ireland presents for jobs and the economy both here in the UK and across the wider world.
It is tempting for this Parliament, once it passes the secondary legislation, to say that the job is done, but we cannot afford to devolve and forget. Will my right hon. Friend assure me that this Government will not devolve and forget?
I would like to take this opportunity to recognise the distance that has been travelled by all parties in getting to this point, but we were brought to this point by a failure of politics around the manner in which the UK chose to leave the European Union. Now that the politics has moved on, it is time for the politicians in Northern Ireland to step up, and we wish the MLAs well in that endeavour and look forward to seeing the First Minister and the Deputy First Minister taking office in what will be a very significant moment in history for all in these islands.
The Secretary of State describes his party as being the party of the Union, and I say to him that it has not gone unnoticed in other parts of the Union that Northern Ireland has for some time had the offer of a status, in its access to the UK market and to the European market, that other parts of the Union are now deprived of. I am sure that voters will draw their own conclusions from that.
I want to ask two questions. When might the details of any new fiscal framework emerge? While I would like to take this opportunity to welcome the new east-west economic council, can the Secretary of State clarify what role there might be for the other devolved institutions in these islands to make that new council as successful as it possibly can be?
On the fiscal framework, I very much hope that the incoming Northern Ireland Executive and Ministers responsible will work with His Majesty’s Treasury in great detail to make sure that we get that absolutely right. I have never conducted a negotiation with His Majesty’s Treasury in that sort of way, but I imagine that it has quite tight pockets, is very difficult to get hold of and probably would not want ongoing commentary. However, I am sure that it will make the matter as public as it can, when it can. Finally, on the east-west body, it is important that it works with all parts of Great Britain.
Although we were told that the Windsor framework could not be reopened, we have succeeded. Although we were told that there would be no change to the green lane, it is gone. We were told that there would be no removal of barriers to trade between GB and Northern Ireland, but we have removed all checks within the UK internal market system, save for those ordinarily required for dealing with criminality and the prevention of smuggling. We were told that there would be no legal change to the Windsor framework or the EU text, yet—this was part of the process of ensuring trust and commitment—colleagues will have noticed the publication just yesterday of more than 60 pages of legislative changes to text on the European perspective. That will allow rest-of-the-world products and the benefits of UK-wide trade deals to truly be available UK-wide.
We are very grateful to the Secretary of State and to the Prime Minister, who was here earlier, and we are grateful for the offers of support and commitment from His Majesty’s loyal Opposition and the Leader of the Opposition. We are grateful for having got to this place today. We have turned the impossible into the possible, and are delivering the undeliverable in this Command Paper. We are hopeful for the future, but the Secretary of State will know that our position is predicated on full and faithful implementation and delivery of what we have achieved. Today’s Command Paper and yesterday’s legislative changes were published; in the spirit of the trust that we have established, and given the process that needs to flow, I would be very grateful if he could indicate that tomorrow, subject to what the Leader of the House does, we will see the introduction and passage of the legislation that is so crucial to this programme.
The hon. Gentleman knows more than anyone that the deal is about safeguarding Northern Ireland’s place in the Union. We have set out what that involves. It includes new measures in domestic legislation to affirm unfettered access and Northern Ireland’s constitutional position, as well as new structures, and steps to ensure that the full benefits of the Windsor framework are felt by people and businesses. As is shown by the draft tariff text that he mentioned, we can continue to show the joint solutions that the UK and EU can deliver under the Windsor framework. He asked me a very specific question about the timetable. I am committed to the timetable, as are the Government. Everybody in this House should know that. In all transparency, it is unbelievably important that, with the leave of the House, we get the business changed, so that we can debate those two statutory instruments and they can be passed. They are a fundamental part of the timetable that leads to Stormont’s return.
The Government have admitted that there will be divergence in the future. On page 17 of the Command Paper, there is an indication that there will be a legal requirement to assess whether new legislation impacts on trade between Northern Ireland and GB. If it does, Ministers have to make a statement. We have had the Minister of State, the right hon. Member for Wycombe (Mr Baker), saying only this week that that does not mean that the UK Government cannot introduce laws that diverge from the EU laws that apply in Northern Ireland. Which is it? Is Northern Ireland going to find that it has the ability to stay tied to the United Kingdom, or will the Government happily proceed to change laws here in Westminster, regardless of the impact it has on Northern Ireland?
The right hon. Gentleman refers to clause 13C in one of the statutory instruments. A whole swathe of things happen behind the scenes before a Bill is brought before this House. One of them, which the hon. Member for Belfast East (Gavin Robinson) has complained to me about before, is something we call the parliamentary business and legislation committee, or PBL. We do a Star Chamber of Bills, and the Secretaries of State for Scotland, Northern Ireland and Wales attend to state whether there is any adverse effect of the legislation being mooted. What the right hon. Gentleman rightly asked for is transparency and the publication of a written ministerial statement when there is the possibility of a significant adverse effect on GB-NI trade. Publishing a written ministerial statement is not in any way what he says it is.
Secondly, as I tried to underline in a previous answer, a timetable has been agreed with the Democratic Unionist party, which the Government are committed to, and if we fulfil it, that will lead to the restoration of Stormont. The House is full of agile and able Members of Parliament who are amazingly good at scrutiny, and I know that they can do that very, very well in the time provided.
As a Member of Parliament from the new intake, I think it is a great shame that we have often felt at loggerheads with Democratic Unionist party Members. Ultimately, I share a huge amount of their values, and I absolutely appreciate their passion and how closely they cling to their identity. I share that passion. Will the Secretary of State ensure that this marks a new chapter when we can work more collaboratively to promote the place of Northern Ireland within our Union, which we all love?
On the financial package, I very much welcome the £3.3 billion for Northern Ireland, which reflects a cross-party effort. Will the Secretary of State acknowledge that there is a need for a further discussion to happen—potentially in the next Parliament—on a long-term review of Northern Ireland’s fiscal framework and fiscal floor? On reform, will he recognise that, building on precedents, the UK Government must lead that process? If we are talking about safeguarding the Union, we also have to talk about safeguarding the Assembly and the Executive.
We are still part of that single market and, from what I see in the Command Paper, we will continue to be. As a consequence, in our energy market in Northern Ireland—I would like an answer on this—we are paying a carbon tax at an entirely different rate from any other part of Great Britain. For our electricity supply, our carbon offset is twice the level paid in any other part of the United Kingdom. What measures on that are included in the Command Paper? It was handed to us at what I would call the eleventh hour and 59th minute. We would like to be given time to get into the details. We very much feel like we are being bounced through a timetable and that we will not get through the detail that is supposedly in the statutory instruments and the Command Paper.
There are a whole host of things to say, but I will just make the point about the difference for Northern Ireland. It does have access to the EU single market and unfettered access to the UK’s internal market, but it is not subjugated to the European Union arrangements. It will not pay into the European Union budget. It is not subject to European Union freedom of movement, services rules, environmental rules, labour rules or procurement rules; neither is it subject to the European Medicines Agency, the common agricultural policy or the common fisheries policy. Northern Ireland has unique circumstances because of its geographic location. Everybody recognises that. We want it to thrive in our Union, and with the Command Paper that direction of travel is set.
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