PARLIAMENTARY DEBATE
Northern Ireland Executive Formation - 16 January 2020 (Commons/Commons Chamber)
Debate Detail
I am delighted to tell the House that all five of Northern Ireland’s main political parties accepted the deal as a basis for re-entering devolved government. Ministers have been appointed, an Executive has been formed, and the Assembly is open for business. Devolution is restored in Northern Ireland. The Prime Minister visited the Assembly and met the Executive on Monday to mark the positive moment of restored devolved government. I know that the whole House will join me in welcoming and celebrating the return of devolved government, and in congratulating party leaders on their confident decision to make this happen.
I thank my team in the UK civil service, the Northern Ireland Office and No. 10 Downing Street for their months of work to make the deal happen. I also thank the Northern Ireland political parties, the Westminster parties and the hon. Member for Rochdale (Tony Lloyd). I want to put on record the debt that I owe my two predecessors, my right hon. Friends the Members for Staffordshire Moorlands (Karen Bradley) and for Old Bexley and Sidcup (James Brokenshire). I also thank my right hon. Friend the Member for Maidenhead (Mrs May) for all the work that she put into this issue during her time as Prime Minister. Finally, on a personal level, I thank Jonathan Stephens, the retiring permanent secretary of the Northern Ireland Office, Ross Easton and, above all, Lilah Howson-Smith.
The Good Friday agreement, which was signed more than 20 years ago, brought with it an unprecedented period of peace, prosperity and growth for Northern Ireland. That progress, however, always was and always will be underpinned by the institutions that it created. Now that those institutions have been restored to full working order, we can carry on with the important business of moving Northern Ireland forward and bringing its people together. The institutions for north-south and east-west co-operation can work again as intended.
The “New Decade, New Approach” deal sets out a range of commitments for the Executive, the UK Government and the Irish Government. It commits a new Executive to addressing the immediate challenges facing the health service, reforming the education and justice systems, growing the economy, promoting opportunity and tackling deprivation. The deal does not seek to restore the Executive for its own sake, but offers real reforms aimed at making it more sustainable and transparent so that the institutions can begin to rebuild trust and confidence with the public. The deal also gives the Executive a seat at the table when we discuss the Northern Ireland Protocol with the European Union. It solves outstanding cases which have been causing real concern to families, so that all the people of Northern Ireland are treated in the same way when bringing family members to this country.
Yesterday the Government announced that we would provide the restored Executive with a £2 billion financial package that would deliver for the people of Northern Ireland and support the deal. That financial commitment represents the biggest injection of new money in a Northern Ireland talks deal for well over a decade. It has already allowed the Executive, this morning, to pledge to deliver pay parity for nurses in Northern Ireland, the first such intervention in a devolved area and one that has now ended the nurses’ strike, and it will continue to support the Executive’s delivery of the priorities for the people of Northern Ireland.
Provided over five years, the deal will include a guarantee of at least £1 billion of Barnett-based funding to turbo-charge infrastructure investment, along with £1 billion of new resources and capital spending. That will include significant new funding of about £245 million to transform public services, including health, education and justice, and a rapid injection of £550 million to put the Executive’s finances on a sustainable footing, including £200 million over three years to help to resolve the nurses’ pay dispute immediately and deliver pay parity.
The UK Government will ring-fence £45 million of capital, and will provide resource funding to deliver a Northern Ireland graduate-entry medical school in Derry/Londonderry, subject to Executive approval. They will also provide £50 million over two years to support the roll-out of ultra low emission public transport. Moreover, the agreement will provide £140 million to address Northern Ireland’s unique circumstances. That money will help to strengthen our Union, and will support the four key areas set out in “New Decade, New Approach”. I hope that the whole House will join me in welcoming the announcement.
These funds will come with stringent conditions attached. In particular, through this agreement I will convene a UK Government-Northern Ireland Executive joint board. This will provide a clear role for the UK Government in overseeing the implementation of this financial package. More broadly, it is right, as we have heard in recent days, that the Executive should focus on ensuring that public services and finances can be delivered more sustainably. Northern Ireland taxpayers deserve to know that their money is being used efficiently and effectively.
The past few days have given us much cause for celebration, but this is not job done. Three years without an Executive was completely unacceptable, and it is now down to all of us to ensure that this never happens again. We need an Executive that will go forward on the basis of trust and mutual respect and, above all else, focus on delivering for the people of Northern Ireland. For my part, I will ensure that the UK Government fully implement their commitments under this deal, but I will also be working with the Executive to ensure that the letter and the spirit of this agreement are being delivered. I commend the statement to the House.
I shall turn now to the details of the Secretary of State’s statement and more generally to the restoration of the Executive and the work he has in front of him. Will he give us absolute clarity on the case of Emma De Souza and her husband Jake DeSouza, who have campaigned hard for the right to be able to live together in this country of ours? She is an Irish citizen living in Northern Ireland. I think that the words in the documents are clear, but it would be unremittingly good news if the Secretary of State could clarify that that situation will be resolved. I think that that is what he said, but it would be helpful if he could place on record the names of those two individuals and how this will affect them.
The document rightly makes reference to the Stormont House agreement. The Secretary of State will know that, 21 years on from the Good Friday agreement, many of the victims and their families are still looking for justice and knowledge of what happened to their loved ones, whether they were murdered by terrorists or even, in some cases, by the forces of the Crown, because that possibility does exist. The Stormont House agreement ensured that there would be a historical investigations unit, and that was an important commitment, but will the Secretary of State put it beyond doubt that he has confidence in the capacity of our police to investigate this, and in the independence of our prosecution services and our judiciary, to ensure that the Stormont House process can be completed in a way that will give satisfaction, as far as we ever can do, to the families and victims of the tragedy that took place in Northern Ireland all those years ago?
I shall now turn to the contentious issue of finance. I applaud the Secretary of State and the Tánaiste for standing in front of Stormont with this document. As the Secretary of State has told us this morning, the two of them tabled a draft text to all parties. There is no doubt that the document is now owned by the Executive and the Assembly, but it is also owned by the UK Government, and the Secretary of State and this Government—the Prime Minister and the Chancellor in particular—must accept the important but challenging programme of work within it. The Prime Minister, who rightly went to Belfast to celebrate the return of the Executive, is party to the ambitions of the document, but he is also party to the need to make proper finances available.
My first question for the Secretary of State relates to the hopefully soon-to-be-concluded nurses’ pay parity dispute. While he said that £200 million will be made available—a lot of money in a health context—the reality is that the cost of providing pay parity and the cost for equivalent awards for other professions in the Northern Ireland health and social care sector is likely to be £200 million on an annual basis, not as a one-off. The package must be properly funded if we are to ensure that we can begin to see a narrowing of the disparity in pay in healthcare between Northern Ireland and the rest of the United Kingdom.
More generally, there is a real issue about the funding of the whole package. The moneys that the Government have made available so far will simply not be adequate for this ambitious document which, I repeat, is owned by the United Kingdom Government just as much as it is by the Northern Ireland Executive. The First Minister and the Deputy First Minister have written a joint letter to the Prime Minister making the point that the money is not adequate. Finance Minister Conor Murphy also told me that he is working things through to discover the real financial consequences of the document, and they will be significantly more than the moneys the Government have made available.
This is a really important moment in the history of our two islands. The Secretary of State deserves enormous credit for the restoration of the Executive, but the process cannot now be frustrated by a penny-pinching attitude from a Chancellor and a Prime Minister who will not accept the consequences. I say directly to the Secretary of State that he has to do better. He must go back to other Ministers and say, “We now need to see the resources made available.”
As for the hon. Gentleman’s question about broader issues for victims and those seeking justice, I point him to the Prime Minister’s comments. He and the Government are clear that we cannot accept the unfair or vexatious pursuit of our veterans when there is no new evidence. However, that must obviously be balanced against the need for truth for victims, and the Government will be addressing that in due course.
On the finances, at £2 billion, this is the best financial deal of any Northern Ireland talks settlement. The hon. Gentleman referred to a letter from the two First Ministers. I have seen the letter and the reply, which points out that this is an injection of money for this talks process: £1 billion of new money and a guaranteed £1 billion of Barnett-based funding up front. We then have the UK Budget in March, and we have a deal for Brexit. The key task for the Executive is to focus on their priorities. The hon. Gentleman referred to the programme for Government in appendix 2, which clearly states that the
“parties agree to publish, within two weeks of the restoration of the institutions, the fuller details of an agreed Programme for Government.”
This Government stand ready to work with the Executive over the coming months and years, and we really want to support them. This £2 billion is an extremely good start, and I am confident it is the basis for a strong future for Northern Ireland.
I also commend the Northern Ireland parties for coming together in the interest of the people of Northern Ireland, and I welcome the representatives from the Social Democratic and Labour party and the Alliance party to the House, alongside the representatives from the Democratic Unionist party.
I congratulate my right hon. Friends the Members for Old Bexley and Sidcup (James Brokenshire) and for Staffordshire Moorlands (Karen Bradley) on their commendable work over the years.
The Government are committed to having no hard border between Northern Ireland and the Republic of Ireland, and the annex to this plan says that the UK Government will
“legislate to guarantee unfettered access for Northern Ireland’s businesses to the whole of the UK internal market”.
It does so on the assumption that that unfettered access is as unfettered as it is today. What are the implications of these commitments for the future trade deal between the UK and the European Union?
The people of Northern Ireland have been left without local government for three years amid Brexit and amid a crisis in their public services. There is no doubt that this absence of government has had a profound impact on their daily lives. All the work that the parties have put into enabling the restoration of devolved government must be applauded, and their efforts must be warmly welcomed, as the Secretary of State said. There is no doubt that the new Government have a huge task ahead of them, but the spirit in which the agreement was reached provides them with great opportunities.
I heard what the Secretary of State says about funding. Last night the Government committed to an additional £1 billion in support of this agreement. To be clear, we believe that that is a necessary and welcome investment, but can the Secretary of State confirm today that those moneys will be subject to the Barnett formula?
In the agreement and in the Secretary of State’s statement, the UK Government commit to a new deal for Northern Ireland in the context of it being dragged out of the EU against its will. Is he able today to detail more fully to the House what this new deal will involve, and to identify some of the specific measures that are planned?
The Executive need to take a different approach from the one they have historically taken. They need to reform. We are setting up a board, and we are looking at how to encourage greater productivity. I was slightly disappointed to hear this week that water rates have been ruled out. The Executive need to look at their own revenue-raising measures, as well as coming to the UK Exchequer for cash.
On the office of diversity, these now are devolved matters, but I absolutely concur with the direction of my right hon. Friend’s question: let us not make this deal add to the division. Everything needs to focus on bringing the community in Northern Ireland together.
We welcome the measures for veterans in Northern Ireland, the appointment of a new Northern Ireland veterans commissioner and the full implementation of the armed forces covenant in Northern Ireland. These are welcome developments for the men and women who served our country. We also welcome the establishment of an Ulster British commissioner to promote the culture, heritage, arts, literature and so on of the Ulster British people of Northern Ireland. We believe that that is an important step forward in promoting and supporting the identity of all of us who regard ourselves as Unionists and having our place in the United Kingdom. On the commitments made on Brexit, I echo the question asked by the former Prime Minister. The current Prime Minister has talked about Northern Ireland having full access to new trade deals, so it will be interesting to see how that works out in practice.
The funding issue has already been raised by the Opposition Front Bencher. We are concerned that, if this deal is to work and devolution is to be effective in Northern Ireland, the resources need to be there in order to ensure sustainability. Can the Secretary of State assure us that the remaining balance of the confidence and supply agreement moneys previously committed by the Government will be included and will come to the Northern Ireland Executive in full?
I congratulate the Secretary of State and the Tánaiste on their efforts in securing the agreement, along with the ministerial and civil service team who helped to deliver it, but may I press him on the finances? The new Finance Minister said yesterday that the settlement that the Secretary of State imposed on the Executive was an act of “bad faith” and that he cannot and will not accept that. How does the Secretary of State intend to mend the gap between the expectations of devolved Ministers and the pay and financial settlement that he has imposed on the new Executive?
On the concern about the level of finances, we all represent our own constituencies, and Northern Ireland has around 20% more funding than any other part of the UK. I have outlined the package and confirmed that there will be a UK Budget by my right hon. Friend the Chancellor. I look forward to working with the Finance Minister, as does the Treasury, as he develops well-costed plans based on good value for money for UK taxpayers.
May I touch on the issue of sustainability? Now that the Executive have been re-established, it is important that they remain there—that they continue to serve the people of Northern Ireland and that we have that local decision making. Will my right hon. Friend comment on the steps that are being taken and will be taken to ensure that the devolved Government in Northern Ireland remain, and remain serving its people?
On sustainability, my right hon. Friend is absolutely right. In the chapter on sustainability that was developed, as were all parts of the party-led agreement, by working groups earlier last year, there are many initiatives on supporting and funding Opposition parties and on looking at how things would work should the First Minister and the Deputy First Minister resign.
On the commitment to the financial package more generally, as I have said before, we stand ready to support the Executive as they develop their priorities.
“negative attitude and disrespect…is consigned to the past”.
We all recognise that. Hopefully Sinn Féin will do the same and will not misuse the case of the Irish language and be confronted about it, as I and others have had to do in the past.
I often get asked this question by my constituents, so would my right hon. Friend confirm for the record that the funding available for Northern Ireland is available to all parts of the community?
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