Northern Ireland (Regional Rates and Energy) Bill

Karen Bradley Excerpts

2nd reading: House of Commons & 3rd reading: House of Commons
Wednesday 21st March 2018 Commons Chamber

[The Secretary of State for Northern Ireland (Karen Bradley)]

I beg to move, That the Bill be now read a Second time.

I start by wishing my hon. Friend the Member for Tewkesbury (Mr Robertson) an early happy birthday because I know that it is coming up. I am afraid that I will not be able to celebrate with him, but I wanted to wish him a happy birthday in the Chamber. I am sure that we will all join in wishing the former Chair of the Northern Ireland Affairs Committee a happy birthday.

As with the Northern Ireland Budget (Anticipation and Adjustments) Bill that we introduced yesterday, I stand today to ask the House to give a Second Reading to legislation that is a necessary intervention to safeguard public services and finances in the ongoing absence of a Northern Ireland Executive and sitting Assembly. I covered the broader political situation in my statement last week, but it will be helpful to remind the House of the context in which we are taking forward this Bill today.

During the past 14 months, in the absence of an Executive and Assembly in Northern Ireland, the UK Government have worked tirelessly to facilitate the restoration of devolved government. It had been my firm hope that a new Executive would be in place to complete its own 2017-18 estimates process and to set their own budget for 2018-19, as well as to extend the current cost capping on the renewable heat incentive scheme. It was therefore with disappointment that I had to bring forward yesterday’s Bill to put 2017-18 public spending on a legal footing.

As I set out in my statement on 8 March, there are acute pressures across public services to be addressed in 2018-19, which is why I took steps that day to provide clarity and certainty on Northern Ireland’s finances for 2018-19. The Northern Ireland (Regional Rates and Energy) Bill seeks to build on that certainty, delivering on this Government’s commitment to protect public services and to ensure good governance in Northern Ireland. Today, the focus is on taking forward key steps to provide support for public services and sustainable finances in Northern Ireland as we move into the next financial year.

[Mrs Anne Main (St Albans) (Con)]

Will my right hon. Friend elaborate on something that the public may not be aware of? There are key decisions that ought to be taken and priorities that ought to be set, but that cannot happen because there is no ministerial grouping in Northern Ireland to make such decisions.

[Karen Bradley]

My hon. Friend is absolutely right. There are decisions that ideally would be taken by Ministers sitting in Stormont as part of a devolved Government, but that has not been the case for 14 months. I am therefore taking steps today, reluctantly, and it is pressing that we are able to proceed. I hope that we can get devolved government in Stormont again in the near future, because that is the best thing for the people of Northern Ireland to be able to take advantage of the available opportunities.

Clause 1 addresses the collection of the regional rate, which represents more than 5% of the total revenue available to the Northern Ireland Executive. With a devolved Government in place, it would be set via an affirmative rates order in the Assembly, enabling bills to be issued in 10 instalments, providing certainty to ratepayers and allowing various payment reliefs to be applied. Last year, it fell to the UK Government to take that step in the absence of an Executive. When I took office as Secretary of State earlier this year, I had sorely hoped that it could be one of the first acts of a new devolved Government and Assembly and would not fall again to this Government and this Parliament to set the regional rates. That will not be possible before the next financial year, and it would be unacceptable to allow uncertainty to linger in the meantime until a new Executive are formed.

While we are clear that it is a devolved matter, we are also clear that only the UK Government and Parliament can take such action to secure the interests of individuals and businesses in Northern Ireland. This Bill therefore sets out rates, in pence-per-pound terms, for both domestic and non-domestic properties. For non-domestic properties, the rate reflects a 1.5% inflationary increase. For domestic properties, the rate would be raised by inflation—1.5%—plus 3%, as I set out in my budget statement on 8 March.

[Lady Hermon (North Down) (Ind)]

I am sure the Secretary of State would like to confirm that she is well aware that the general public in Northern Ireland will not be one bit pleased that, when rates are going up in Northern Ireland, it is expected that Members of the Legislative Assembly will get a salary increase from 1 April, unless the Secretary of State exercises the power that she will take later this afternoon. Will she confirm that she will cut their salaries and eliminate any increase before 1 April?

[Karen Bradley]

The hon. Lady is pre-empting the speech that I will make later—I hope not in six hours’ time—when I will be legislating to bring powers to this Parliament to vary the rates of MLA pay. I am doing so this week to ensure that it happens before the start of the new financial year, so that no pay increases go through. I well understand her strong feeling, which is one that has been expressed to me by many in Northern Ireland.

[Nigel Dodds (Belfast North) (DUP)]

The Secretary of State will know that the Assembly Commission, which comprises all the parties, recommended that she should take a power to ensure that the pay increase would not go ahead. That is the view of all the political parties in Northern Ireland. It is a sensible step, and we welcome what the Secretary of State is saying.

[Karen Bradley]

I thank the right hon. Gentleman. He is right that it was cross-party, cross-community view that the pay rise should not go ahead, which is why we are legislating today.

Returning to domestic rates, I well understand the concerns that people will have, but this important measure will address a hole in the budget for 2018-19, so that public services can still be delivered. In my view, the measure represents an important contribution to delivering a sustainable budget picture for 2018-19. As the budget consultation launched by the Northern Ireland civil service last year pointed out, there are important conversations to be had about the right balance in Northern Ireland between revenue raising and spending efficiencies, and that document discussed rises in regional rates of as much as 10% above inflation. Having reflected on conversations with the parties and stakeholders more broadly, and having understood the pressures on key services, I concluded that it was right that we ask households to pay a little more to help to protect and preserve public services.

However, I also considered that we had to balance that increase at the right level. That is why I propose a 3% on top of inflation rise—less than £1 a week for the average household—to help to address pressures in health, education and elsewhere. It is also why I have held business rates in line with inflation—within a broader budget envelope that allows the safeguarding of the small business rate relief—to keep a focus on the growth that Northern Ireland needs to see. That forms an important part, along with the flexibilities that we set out in last week’s budget statement, of helping Northern Ireland to live within its means at a challenging time, maintaining the UK Government’s responsibilities to uphold good governance in Northern Ireland.

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

Does the Secretary of State agree, in addition to the information that she is imparting to the House, that the onus falls on district councils as well because they set a district rate? If they are effective and efficient, the increase will be even less than she has indicated.

[Karen Bradley]

The hon. Gentleman makes an important point. We all know that local government finances operate at both district and regional levels, and he is absolutely right to make the point that some of the regional rates paid by households go to district councils. It is important that they reflect the efficiencies that we are asking the rest of the civil service to reflect. As the Bill makes clear, nothing that we do would cut across the continuing right of the Executive to set a rate by order in the usual way. Should a devolved Government be restored in Stormont, they would therefore be able to make an Executive decision about the regional rate.

Clause 2 deals with the administration of Northern Ireland’s renewable heat incentive scheme, which was established in 2012 to support efforts to increase uptake in the use of renewable energy. However, owing to incorrect assumptions about boiler size and usage, tariff levels and lack of cost controls led to substantial excess payments. Over the 20-year lifespan of the scheme, the projected overspends were well over £500 million, with £27 million of overspend in the 2016-17 year alone, putting the sustainable finances of the Northern Ireland Executive at significant risk.

As colleagues will be aware, the administration of the scheme and the circumstances that led to errors in its administration are subject to an ongoing public inquiry. One of the final acts of the last Executive was to introduce regulations in January last year that put in place robust cost controls. Those made sure that the costs were sustainable. They were put in place only for a year, to allow for longer-term consideration of the scheme as a whole.

[Lady Hermon]

Again, I am grateful to the Secretary of State for giving way. Will she confirm for the benefit of people in Northern Ireland in particular the savings to the public purse as a result of the Bill? How much would it cost without a cap on the RHI scheme for another 12 months, compared with the measures in the Bill?

[Karen Bradley]

As I have said, the estimated saving for 2016-17 was £27 million. I assume a similar sort of saving this year. The total saving as a result of the cost capping is in the region of £450 million.

[Nigel Dodds]

The Secretary of State rightly said that this was a continuation of measures that were put in place by Simon Hamilton, the DUP Economy Minister, and which saved money last year. Will the Secretary of State confirm that the Bill replicates the excellent legislation introduced by Mr Hamilton?

[Karen Bradley]

I can confirm that that is the case. We are following the same cost capping as was put in place by the Executive and Simon Hamilton as Economy Minister. The right hon. Gentleman will know the restrictions placed on this Parliament in terms of what we can do with changes, and we are very much guided by decisions taken in the last Executive. He will also know that since then there has not been an Executive to undertake that broader consideration of the right energy policy for Northern Ireland. We are now at the point where the existing cost controls are due to expire. If that happened, there would be no legal basis, not only for maintaining the current cost cap but for paying all those who receive payments under the scheme and whose installations were accredited before November 2015. Neither of these would be acceptable outcomes, nor would it be suitable for the Northern Ireland civil service to administer payments on an extra-statutory basis, which would create unnecessary legal uncertainty for all concerned.

That is why clause 2 ensures that the present cost controls, and the legal basis for payments, can continue for the 2018-19 financial year. As with the 2017 regulations, there is a sunset provision that expires after one year. This is a devolved policy matter, and it is right that the longer-term approach is one for a restored Executive to decide. In the meantime, I am assured that the Northern Ireland civil service will undertake detailed analysis to enable a new Executive to consider the right course for the future.

In summary, this is a modest Bill doing two discrete things. In setting a regional rate and extending the cost controls of the RHI scheme, it upholds our responsibilities to ensure good governance and to safeguard public services and finances in Northern Ireland. It does so in a way that continues our approach of intervening only as necessary to meet those aims, and only at a point at which it is critical that the measures are taken forward. I hope that colleagues across the House agree that it is important we now make progress to see these measures passed into law to put Northern Ireland on its strongest financial footing for the year ahead. The UK Government shall continue to meet our responsibilities to the people of Northern Ireland. To that end, I commend the Bill to the House.

[Owen Smith (Pontypridd) (Lab)]

The Secretary of State is right that this is a modest Bill with relatively few clauses and few substantive measures. I thank her and her office for providing me with a draft copy yesterday evening, but it is a pretty poor showing that the rest of the House had precisely 10 minutes to look at the Bill before debating its contents, however modest they are. That does not strike me as a terribly long time to look at a measure that increases taxes on 1.8 million people in this country.

We support the Bill. As the Secretary of State said, it is a necessary measure to allow councils to raise the regional rate. It legislates in an area of clearly devolved competence, and it sets the regional rate at about 4.5%, which is above inflation. My first question—I hope that the Under-Secretary will be able to answer it at the end of the debate—is, how did the Government arrive at that figure? Was it discussed with political parties or with the Northern Ireland civil service, or, indeed, with local councils in Northern Ireland? The Secretary of State could have set a lower or a higher rate. How did she reach that figure?

Will the Secretary of State explain the cash impact on households in Northern Ireland? The explanatory notes are scant, so we do not have an impact assessment, and I do not think that anyone in Northern Ireland knows the net effect on average households. It would be useful to learn that.

The RHI measure was a poorly drawn piece of legislation. It is right that we are extending the cap again today. As the Secretary of State said, the liabilities for the taxpayer were potentially £500 million—some people have even said £700 million—so it is absolutely right that we should legislate to mitigate that figure. We are amending the Renewable Heat Incentive Scheme Regulations (Northern Ireland) 2012, which were laid in the Northern Ireland Assembly, passed and amended there. It is Northern Ireland legislation, and we support its further amendment today. However, that raises an important question relating to yesterday’s debate that is vital in the halfway-house period—the limboland—for Northern Ireland. We have had 14 months without an Assembly or Executive, during which Ministers have not been accountable to people, either in Northern Ireland or in the House. We have legislation on issues that fall squarely within the devolved competence of the Northern Ireland Assembly when the Government choose to introduce them, but there are other issues on which the Government choose not to introduce measures. Yesterday, I mentioned the historical institutional abuse inquiry compensation scheme and the prospect of a pension for people who were severely disabled and injured in the troubles.

I was troubled by the answer that the Secretary of State gave to my question, in which she explained why she could not legislate on those things:

“Constitutionally, the inquiry”—

the HIA inquiry—

“was set up by the Executive and reported to the Executive. Unfortunately, the Executive were unable to take decisions on the recommendations before they collapsed…he”—

meaning me—

“will understand that the constitutional implications of the Westminster Parliament or Government taking a decision about something set up by a devolved institution mean that such decisions are not to be taken lightly.”—[Official Report, 20 March 2018; Vol. 638, c. 204.]

I completely accept that, but the Secretary of State is taking a decision—I presume not lightly—to legislate in other areas of devolved competence, including MLA pay, later today. We need to understand why it is deemed permissible to legislate in certain areas but not in others.

To that end, yesterday evening I commissioned the House of Commons Library and an independent Queen’s counsel to provide legal advice to the House, and I will happily place those items in the Library later today. I asked them to explain what the difference might be, constitutionally and legislatively, between those two areas. The Library agreed with what I assumed would be the fairly standard interpretation, which is that there is no constitutional reason why the Secretary of State cannot legislate on historical institutional abuse or on the victims’ pension—the pension for the severely injured and disabled. The Library says:

“As a matter of constitutional law, the UK Parliament can legislate with regard to any matter whatsoever in relation to Northern Ireland, relying on the principle of Parliamentary sovereignty.”

It goes on:

“If the Assembly is unable to introduce legislation, UK Government Ministers may decide that it is either necessary or expedient to ask Parliament to do so.”

Of course, they may decide it is not politically expedient to do so or not timely to introduce those things. That is what we are dealing with here—

[Karen Bradley]

rose—

[Owen Smith]

I hope that when the Secretary of State intervenes she will explain that.

[Karen Bradley]

I wanted to make the point that although, constitutionally, this Parliament can legislate on any matters regarding the United Kingdom, where a matter had been devolved we would be undermining the devolution settlement—that is the point. It would be extraordinary for this Parliament to decide to legislate, unilaterally, where, for example, such an inquiry was set up by the Welsh Assembly or the Scottish Government. We do not take these things lightly and we need to give them great consideration, although I have enormous sympathy with the victims, in both cases.

The hon. Gentleman will know that I was in the Home Office at the time we set up the inquiry on institutional abuse across England and Wales. We carefully considered, and had many debates in the House on, whether the issues in Northern Ireland and the existing Hart inquiry should be brought into that inquiry, but the decision was taken that they should not, because the Executive had already set up the Hart inquiry.

[Owen Smith]

I thank the Secretary of State for that intervention, but she cannot have her cake and eat it. She cannot argue that it would undermine the devolution settlement to intervene and legislate in areas of devolved competence—for example, on the HIA or the pension for those who have been severely disabled—and then do so. She is doing precisely that today on the renewable heat incentive scheme, which was introduced in the Assembly, by the Assembly, for Northern Ireland, and on the regional rates, which is an area to do with local government that is entirely devolved to the Assembly in Belfast. One cannot have one’s cake and eat it. One cannot speak out of both sides of one’s mouth on this issue, and I fear that that is what the Government are seeking to do.

--- Later in debate ---

[Owen Smith]

I will give way to the hon. Gentleman in a moment, because I want to complete this point. I sought some support from KRW Law, a firm of lawyers at the Bar in Belfast. Its view is:

“There are three significant points which would support a conclusion that Parliament should in fact legislate”

particularly in respect of the HIA. It continued:

“(i) The Sewel Convention is a…convention, not a rule of law, and can be departed from for good reasons;

(ii) The constitutional obligation to avoid a vacuum in governance clearly has more weight in the present constitutional circumstances”

where we do not have an Assembly.

The hon. Gentleman raised that second point. The third was that the HIAI made a clear case for intervention. Therefore, I put it to the Secretary of State that there is clear precedent and legal support for her intervening to support some of the most vulnerable and damaged people, either under the terms of the abuse inquiry or in respect of those who have been physically disabled.

I raise the pension for those who were disabled and injured because they are here today—some are in the Gallery for today’s debate and some are meeting hon. Members from across the House. I think they would want to hear from the Secretary of State that she understands the nature of the issues they face.

[Karen Bradley]

rose—

--- Later in debate ---

[Owen Smith]

I give way to the Secretary of State.

[Karen Bradley]

I want to clarify the difference between the two issues the hon. Gentleman is talking about. The HIAI—the Hart inquiry—was set up by the Executive and therefore, constitutionally, it is a matter for the members of the Executive to make a decision on its recommendations. The Hart inquiry reported to the Executive after they had collapsed and therefore they were unable to do that. That therefore gives a legal difficulty: what would the Executive have decided on those recommendations for this Parliament to try to second-guess?

On the victims of the troubles, the hon. Gentleman will know that I have made it clear that this Government are committed to setting up the institutions that were agreed under the Stormont House agreement. We are committed to consulting on how that is done, and as part of that, we will deal with all the issues regarding the victims of the troubles, because I agree with him that those people have been waiting far too long to see remedy for what they went through.

[Owen Smith]

I am grateful to the Secretary of State for the intervention, and let me answer it and the point made by the hon. Member for North Antrim (Ian Paisley). She makes my point for me. She asks what the Executive decided in respect of the HIAI and the answer is we do not know. We know that they said they thought they ought to implement its findings in full—they said that just before the Assembly went down—so we have some clarity on that. Crucially, we do not know what the Executive would have decided in respect of the regional rate and we do not know whether the Assembly would have decided to change the terms of the cap on the RHI, yet we are legislating in this place, in this Bill, to change those things, without any knowledge of what the Assembly would have done. So it precisely relevant to the business at hand—

--- Later in debate ---

[Dr Murrison]

I note that we voted earlier to allow six hours to debate these matters, so I am more than happy to hold forth at great length. The right hon. Gentleman will have to await my Select Committee’s report on this matter, which will deal partly with how, as an option for future-proofing governance in Northern Ireland, powers might be given to local government in future rather than to a body that I am afraid has shown itself to be unstable. It would clearly be inappropriate for any body to levy taxes for services for which that body was not responsible. That is the burden of the point that he was trying to make: the two clearly have to go together. I hope that my Select Committee report, which will be published in the next few weeks, will make that clear.

Although we have six hours to debate these matters, I am sure that we do not want to take that length of time.

[Karen Bradley]

indicated dissent.

[Dr Murrison]

Well, if the Secretary of State wants me to go on, I certainly will, but I think I would rapidly lose the House’s sympathy. I clearly support the Bill, which is completely uncontroversial, given the grave situation.

Northern Ireland Assembly Members (Pay) Bill

Karen Bradley Excerpts

2nd reading: House of Commons & 3rd reading: House of Commons
Wednesday 21st March 2018 Commons Chamber

[The Secretary of State for Northern Ireland (Karen Bradley)]

I beg to move, That the Bill be now read a Second time.

This is the third important piece of legislation to be brought before the House this week. The Northern Ireland Budget (Anticipation and Adjustments) Bill, which the House debated yesterday, and the Northern Ireland (Regional Rates and Energy) Bill, on which we have just concluded proceedings, focused on increasing clarity and confidence in Northern Ireland’s finances. This Bill will now look to increase public confidence in Northern Ireland’s political institutions.

The Bill addresses an issue of long-standing public concern: the pay and allowances of Members of the Northern Ireland Assembly. That is a subject in which interest among the public has increased with the time that Northern Ireland has been without a functioning devolved Executive—a period that now stands at 14 months.

[Nigel Dodds (Belfast North) (DUP)]

The Secretary of State will know that our party supports the Bill. We believe that it is right to take the power to deal with MLA pay and to stop the proposed pay rise as agreed by the parties in the Northern Ireland Assembly. We would also ask the Government to look carefully at the situation in which Sinn Féin representatives get representative money in this place without being subject to the same rules as everybody else. The two should go together.

[Karen Bradley]

The right hon. Gentleman has raised that point with me on several occasions and it has been discussed in the House. I know the strength of feeling on the matter, but he will also know that it is a matter for the House, not for the Government. That is why we are dealing with the power to vary the pay and allowances of Members of the Legislative Assembly today.

[Gavin Robinson (Belfast East) (DUP)]

The Secretary of State is right to indicate that the matter is for the House, not for the Government, but what is a matter for the Government is the ability of Northern Ireland political parties to raise funds outside the United Kingdom in international jurisdictions and wherever they so choose. She could take steps to close that loophole. Will she do so?

[Karen Bradley]

At Question Time, we had a question about the transparency of donations and I am pleased that the House has passed the order to start to increase such transparency. I know that the hon. Gentleman is keen to see further work on that, but I ask that we should see how the order works first. If more needs to be done, we will need to look at that.

[Sir Desmond Swayne (New Forest West) (Con)]

I am surprised but delighted when, during election campaigns, I continue to receive a salary, notwithstanding the fact that the House has been dissolved. What is the difference in principle between us receiving salaries when Parliament has been dissolved and Members of the Assembly receiving salaries when there is no Assembly? I do not mean to be difficult, but I would not want us to set an unhelpful and unwelcome precedent.

[Karen Bradley]

My right hon. Friend always asks helpful questions; he is not known for doing anything other. We are looking to have the power in this House to vary the salaries of Members who serve in the Northern Ireland Assembly—MLAs—in response to the fact that there has been no functioning Assembly for 14 months and the clear public concern about people receiving salaries when the Assembly is not sitting. He is correct, of course, that Members of Parliament receive a salary for the period in which an election runs, but I believe that the rules are different for the period when Parliament is dissolved as opposed to when it is sitting. I understand his concerns, but I assure him that this relates specifically to MLAs’ pay, not MPs’ pay.

[Dr Andrew Murrison (South West Wiltshire) (Con)]

I encourage my right hon. Friend not to be distracted because a number of important points have been made by right hon. and hon. Members, but the Bill is very tight and, as she rightly says, responds to public concern. In my experience, and I suspect in hers too, that public concern goes right across the divide in Northern Ireland. She is right to pursue this matter, because the public expect these salaries to be dealt with. In my understanding, that is the sole purpose of the Bill. Everything else can be discussed electively, but it must not distract the Secretary of State.

[Karen Bradley]

I thank my hon. Friend, the Chair of the Northern Ireland Affairs Committee, for his intervention. He is right that the Bill responds public concern, which has been raised with me and with him as Chair of the Committee, and with its members. I am sure that it has also been raised with Members of Parliament here who represent constituencies in Northern Ireland.

The Bill will grant the power to vary pay and allowances for Members of the Northern Ireland Assembly, and, as I have just said, it is clear from my conversations with the public and stakeholders that there is broad desire for action to be taken in this regard. The Assembly has not sat since 13 March 2017—its first meeting after the 2 March election—but its Members continue to be paid their full salaries.

MLAs’ salaries and allowances are rightly a devolved matter. The normal process for setting MLA pay and allowances is for the Independent Financial Review Panel—a body set up by the Assembly for this purpose—to make determinations on pay and allowances. The panel would normally do that ahead of each Assembly election to cover the newly elected Assembly, although it is also empowered to make changes to reflect extraordinary circumstances. The last panel determination was made in March 2016 before the election in May that year. As no Members have been appointed since the first panel’s term of office ended in 2016, there is at present nobody in Northern Ireland with the power to change MLA pay to reflect the current extraordinary circumstances.

From my conversations and from opinion polling, it is clear that the public want to see somebody with the power to act. That is what the Bill will leave me in a position to do. In short, it will put me in the same position as the panel ordinarily would be in, giving me, as Secretary of State, the power to set out the pay and allowances of MLAs by means of a determination.

[Lady Hermon (North Down) (Ind)]

When the Secretary of State last made a statement to the House covering this particular issue, she made it clear that she wanted the Northern Ireland parties to make “full and final representations” to her on it, but she did not clarify when the closure date was for full and final representations. Will she confirm today that that date is before the end of this month and that she will therefore be free to cut MLAs’ salaries before the end of March?

[Karen Bradley]

The hon. Lady is right that I did not set a specific date. I hope that representations will be made and will continue to be made and that the fact that we have this Bill before us will encourage people to come forward and make representations. I am also clear that the reason for introducing it this week—I will come to this later—is to ensure that the pay rise that would have gone through automatically on 1 April is stopped, and that we can then take a decision about pay. I will come to my position—what I am minded to do—but she is right that I have not made a final decision on a date.

[Lady Hermon]

I thank the Secretary of State for being so generous in taking a second intervention so quickly. Will she also confirm in the House, for the record, that all representations made from Northern Ireland political parties will be published, so that the public can see that the general consensus across the political parties is that they want to see MLAs’ salaries cut?

[Karen Bradley]

Of course I am happy to publish any representations made to me, although that might not be appropriate for some, for specific reasons, and information might need to be redacted. I cannot envisage any such reasons now, however, and I will of course ensure as much publicity and transparency as possible.

One important difference between the panel’s powers and those in the Bill is that, although the panel also makes determinations on pensions, the Bill includes an explicit protection for MLAs’ pensions so that they are not affected by any changes to MLAs’ pay.

With the panel’s 2016 determination continuing to operate, and without action by someone empowered to make a new determination, a £500 per year increase in the salaries of all MLAs will automatically apply from 1 April. That is linked to the level of inflation the previous September. The criteria for an increase was met in 2017, so the increase will apply automatically at the start of next month. I am clear that it is not appropriate for this increase to apply in the present circumstances.

In advice provided to my predecessor, my right hon. Friend the Member for Old Bexley and Sidcup (James Brokenshire), Trevor Reaney, a former Clerk of the Northern Ireland Assembly, recommended that the increase not take place. Further, the Speaker of the Northern Ireland Assembly has written to me on behalf of the Assembly Commission saying that it is its view that the rise would not be appropriate and that it would be appropriate for me to take action to stop it. If granted the power to do so by the Bill, I will introduce a short determination to do just that.

More broadly, in his December 2017 advice, Mr Reaney provided his independent assessment of what action should be taken on MLA pay and allowances in the current circumstances. As part of that advice, he also recommended stopping the £500 increase. The advice was, however, more wide ranging. He made a series of recommendations, including for a 27.5% reduction in MLAs’ salaries. That was a considered case based on his assessment, following discussions with the parties and other stakeholders, and reflected pay that took account of all the important work that many Members continued to do in the absence of an Assembly. That is, at this stage, a recommendation I am minded to follow.

As we have just discussed, I set it out last week that I wished to seek final representations from the parties before I took action. I continue to encourage those representations so that we can hear views from all sides before introducing a determination on wider changes to pay and allowances under the Bill. I cannot act to put a determination in place, however, until the Bill has been passed by both Houses and received Royal Assent. I hope that right hon. and hon. Members across the House and in the other place will support the Bill and allow me to take action on this matter.

The Bill itself makes no change to MLAs’ pay or allowances. It merely grants me the power to make a determination during this period without an Executive.

[Bob Stewart (Beckenham) (Con)]

Does the Secretary of State have a view on what should happen to the salaries of those who work for MLAs? They have no choice, and we should be sympathetic to that.

[Karen Bradley]

I have said in the Northern Ireland Affairs Committee and elsewhere that I agree with the point my hon. and gallant Friend makes. The staff, who work extraordinarily hard on behalf of MLAs’ constituents, should not suffer as a result of our being unable to form an Executive and get the Assembly sitting. As Members of this Parliament, we know the work we do in this place and for our constituents outside, but we also know how hard our staff work, and they should not be prejudiced by the Bill. I do not intend, therefore, to take any action with regard to staff salaries. They should continue to be paid, given how incredibly hard they work for MLAs’ constituents.

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

Will the Secretary of State take it from me that many people in Northern Ireland will be grateful she is doing that? As we heard in the Northern Ireland Affairs Committee whenever the former Finance Minister, Alex Easton, came and answered questions from the hon. Member for North Down (Lady Hermon)—it became known as the Alex Easton section—the staff of hard-working MLAs work day and night to deliver the best deal possible for constituents, so this is very good news. We welcome the salary reduction, but people on the ground should not suffer as a result.

[Owen Smith (Pontypridd) (Lab)]

rose—

[Karen Bradley]

I give way to the shadow Secretary of State.

[Owen Smith]

I too, welcome what I think I heard from the Secretary of State, but may I clarify one point? Is she saying that she does not intend to enact Trevor Reaney’s recommendation that the staff budget should be cut from £50,000 to £37,500? If that is what she has decided, it is an excellent decision.

[Karen Bradley]

That is exactly what I am saying. As I have said, I know how hard my staff work, and I am sure that the staff of all of us in this place work incredibly hard for our constituents. The position of the staff at Stormont should not be prejudiced by what is happening with their political masters.

[Lady Hermon (North Down) (Ind)]

I have great sympathy with what the Secretary of State has said about not cutting allowances for staff. They should not be punished because the MLAs are not sitting and have not sat for 14 months. However, the Secretary of State said that she was “minded” to follow Trevor Reaney’s recommendation, delivered on 20 December 2017. Does that translate into cutting MLAs’ salaries when she is given the power to do so today? That is what the people of Northern Ireland want to know.

[Karen Bradley]

Yes, I am minded to cut the salaries of MLAs in line with the Trevor Reaney recommendation, on the basis that that is the only evidence that I have and the only advice that I have. However, I am open to recommendations and representations from others. I want to put on record my thanks to Mr Reaney for the work that he did, but if others believe that something different should be done, I shall welcome their representations.

[Paul Girvan (South Antrim) (DUP)]

I welcome the Bill. In the statement that was made last week, it was indicated that there would be consultation with the parties. I welcome that as well, but when will the consultation start?

[Karen Bradley]

I do not intend to consult the parties explicitly. What I have said is that I would welcome representations from the parties to provide me with the evidence and the views that I need to make a final decision about the level at which we should set MLAs’ salaries.

I have spent many hours in the Stormont Parliament building over the last few weeks, along with some Opposition Members. It is a wonderful building, and it is right for it to be full of MLAs and their staff, working and delivering on behalf of the people who elected them. We know how different this place is during recesses from how it is when Parliament is sitting. I want to see that place alive, as it should be.

[Emma Little Pengelly (Belfast South) (DUP)]

I absolutely agree with what the Secretary of State has said about constituency staff. They work incredibly hard, and they are in their present position through no fault of their own, so I welcome that decision. I ask her to recognise, however, that there are also very hard-working constituency MLAs, many of whom—including those in my party—want to get back to work but cannot because there are red lines. One of them is my constituency colleague Mr Christopher Stalford, who works very hard in South Belfast alongside me.

--- Later in debate ---

[Karen Bradley]

Those are issues that Mr Reaney looked at. He looked at the work that the MLAs are not doing because the Assembly is not sitting, but also at the work they do for their constituents, and tried to find a balance. That is why I would welcome representations from others, so that I can be sure that the decision that is made is a fair decision that reflects properly the contribution that MLAs make to their constituents even in the absence of an Assembly.

Once an Executive is formed, the power to make a determination will return to being an entirely devolved matter. A future panel would of course be free to make a new determination, applying to all future periods, if it saw fit. That would supersede any determination made under the Bill. To ensure that we do not again find ourselves in a situation in which MLAs remain on full pay when there is no Executive, with no panel determination covering that situation, the Bill allows a determination made under it to apply again. Let me make it clear that it is the determination that would apply again. The power to make a new determination would, in those circumstances, remain devolved.

Therefore, overall, the focus of the Bill is narrow, and I consider taking the power to set MLA pay a necessary step to uphold public confidence in Northern Ireland in the absence of an Executive and a sitting Assembly. As an immediate step, if granted the power set out in the Bill, I intend to act to stop the £500 per year inflationary increase applying to MLAs’ salaries from 1 April. Beyond that, I am minded at this stage to follow the recommendations made by Mr Trevor Reaney, but am open to receiving representations before making my final decision. I commend the Bill to the House.

--- Later in debate ---

[Gavin Robinson]

Thank you, Mr Deputy Speaker. Last night, you were concerned that we were descending into talk of bunkers; today we are perhaps going bonkers. But we will get there.

My parliamentary leader, my right hon. Friend the Member for Belfast North (Nigel Dodds), has outlined our support for the Bill. We think that this is a necessary step that the public of Northern Ireland expect us to take. Indeed, there has been a great deal of frustration over the length of time it has taken to get to this point. The only greater level of frustration is that we do not have an Assembly and that all 90 Members of our legislative Assembly in Northern Ireland will be affected as a consequence of the actions of a minority within it. We cannot overlook that fact when we address the contents of the Bill.

Other Members will mention hard-working MLAs. Mention has been made of one from North Down and of another from Belfast South. My colleagues Joanne Bunting and Robin Newton are also hard-working Members of the Legislative Assembly. I would go further, however, and say that all five representatives in my constituency of Belfast East are hard-working representatives for their constituents—not just the Democratic Unionists but the Alliance party representatives and an Ulster Unionist as well. The same is true of Green representatives and of Social Democratic and Labour party representatives in Northern Ireland. All those representatives would have a Northern Ireland Executive and Assembly established and working again tomorrow. They all stood because they believe in their constituents, in our country and in democracy, yet they are frustrated from doing their jobs. There might be a tad of frustration at the length of time it has taken to see action on MLAs’ pay, but MLAs and the public more generally want the MLAs to be active for their constituents and for their communities. Those MLAs want to get on with the job.

We are where we are, however, and there are a couple of questions about the Bill that I would like to raise with the Secretary of State. It has been clearly outlined that, should it be required, any determination on the basis of this legislation would be capable of being made again, even after the restoration and potential subsequent decline of an Executive.

[Karen Bradley]

If it is helpful, I can tell the hon. Gentleman the way this will work. Once the Executive are formed, the power to make decisions will move back to the panel, because it can be re-formed, but if the Executive were to collapse again, we in this House would retain the ability to make a determination here without the need for further legislation.

[Gavin Robinson]

I am grateful to the Secretary of State, but clause 1(3) gives me cause for concern. It states clearly:

“The power to make a determination under subsection (1) or (2) ceases on the first occasion”

that the Bill is used to make a determination and an Executive are re-formed. If that power ceases when an Executive are re-formed, how can another determination be made? I have read the explanatory notes, and I see that the intention is that a determination can be made, but that seems to jar with the fact that the power will cease on the first occasion it is used when an Executive are re-formed. I understand that this question might not be able to be answered quickly, but if there is an intervention to be made, I will take it. If not, I will move on, but I hope that we can get some clarification on this as we continue our consideration of the Bill.

The Secretary of State is absolutely right to indicate that she will immediately take steps under this legislation, if it is passed, to stop the £500 increase that is due to MLAs’ pay in April. That is a sensible decision, and I think that the court of public opinion would be aghast if Assembly Members were to receive another £500 increase.

[Karen Bradley]

I thank the hon. Gentleman for giving way. The first determination does cease at the point that the Executive are re-formed, but we still have the power to make further determinations in this place if the Executive subsequently collapse. This determination will cease, so we may then need to make a separate determination.

[Gavin Robinson]

I thank the Secretary of State. That is exactly what was outlined earlier, but it still does not solve the problem of the terminology and the language. Clause 1(3) states that the

“power to make a determination”—

a fresh or new determination—

“under subsection (1) or (2) ceases on the first occasion after the passing of this Act”

when an Executive are formed. I accept that the determination itself could be renewed, but I seek clarification on whether there is the power to do so. I may be completely misunderstanding things, but the Secretary of State is indicating that the power will exist to make a new determination, yet subsection (3) indicates that the power “ceases”, so I would be grateful for some clarity.

[Karen Bradley]

I know that this is very technical, but I am trying to resolve this today, rather than have to come back to the hon. Gentleman. The intention is that a determination made in the current period would reapply in any future period, but the sunset clause means that the power cannot be used. Does that make sense?

[Gavin Robinson]

rose—

[Karen Bradley]

It may be easier if we write to the hon. Gentleman with exactly how it works. The intention as set out is how we intend things to work, but it may be easier if we write to him with the technical details.

[Gavin Robinson]

That would be useful. The Under-Secretary of State for Northern Ireland and I parsed such issues last night to the point that he questioned my sincerity because of the breadth of the smile on my face. It is useful to seek clarity on the Floor of the House, because the House’s intention needs to be clear should there ever be cause for judicial consideration, and I think what the Secretary of State has said is making things clear. I do not claim to be an expert on such matters, but there is an issue with the wording of subsection (3), and I will take the opportunity, once I have concluded my remarks, to withdraw from the Chamber—if that is appropriate—for a discussion with the officials should there be any need to raise the issue again in Committee.

[Gavin Robinson]

As I have outlined, my concern is that the power ceases once we make the determination and the Executive are re-formed. That is the difficulty. It is not that there would not be the intention or the willingness; it is that the legislation, as currently drafted, removes the power.

[Karen Bradley]

We do intend that to be the case—I recognise that we are going around the houses slightly—and I suggest that the hon. Gentleman speak to my officials. We would be very happy to go through things. If there is confusion or if something needs to be made clear, we can either put something in the Library or say something in the other place when the legislation is debated there.

[Gavin Robinson]

I know that you did not expect that exchange of views, Mr Deputy Speaker, but this is important. If we are to pass legislation for Northern Ireland when we have a democratic deficit at home and if we are to use this accelerated process, it is important that we have the opportunity at least to probe and consider things to iron out the contents of any Bill that affects the people of Northern Ireland.

The Secretary of State is absolutely right to take the important step of bringing to a close the idea that MLAs will receive a pay increase of £500, and the public will support her. However, we are left in an invidious position by making a decision today without knowing how it will be rectified. If MLAs were doing their job today, the only reason why they would be getting an inflationary increase is that inflation and the cost of living are there and the value of the job has been assessed such that the salary should not just be fixed but increased in line with inflation.

I would love to know what happens when the Assembly is restored. Would Assembly Members receive adequate restitution if their pay rose in line with inflation, as it would for any other worker or public servant in this country? Will the Assembly be placed in an invidious position where, to secure the true value of MLA jobs, one of their first acts will be to rectify the decision not to introduce an increase in April? The indication that the Secretary of State gave today is right, but I am concerned that if that continued for an indefinite period the value and worth of salary attached to the role of MLA would be continually diminished.

[Karen Bradley]

Those are extremely good technical points, but I am assured that the determination that would be made to stop the £500 increase and a further determination to reduce pay would apply for the period in which an Executive are not formed. If the Executive are reformed, MLA pay will be at the rate it should be, including the £500 increase.

[Gavin Robinson]

I am grateful for that clarification, which is important in two respects. During the stasis in Northern Ireland, we should not allow a diminution in the value of the role of MLAs or in the worth of their work. More importantly, it should not be for MLAs to set it back again.

That leads me neatly on to the representations that the Secretary of State has invited on whether she should proceed with Trevor Reaney’s outline proposals. Inviting representations is preferable to a full consultation, because all of us in public life recognise that MLAs, Members of Parliament, local councillors, Ministers and parties should not make determinations about their own pay. Having heard what the Secretary of State has said in our exchanges, I believe that she is mindful of that and does not wish to have a full consultation with parties in which they would determine how she should proceed. I believe that she will proceed in the full knowledge that she has our backing in taking appropriate steps today.

This measure is necessary because we do not have a functioning Executive in Northern Ireland. Even though a programme for government was agreed in October 2016, apparently agreement could not be reached two months later, and the Assembly was brought down as a result of selfish, particular, political, partisan pursuits by one party— Sinn Féin—which, for the past 14 months, has held the people of Northern Ireland and MLAs, along with their willingness and desire for a devolved Assembly, to ransom. It has done so against the needs of its own community for health reform. It has done so against the desires of its community when it comes to inspiring children, investing in their future, supporting education and reorganising our schools in Northern Ireland. It has done so against the wishes of all those who believe in community regeneration, as we do, and who believe in community development, as we do. We see the consequences of its actions coming down the tracks in cuts to neighbourhood renewal in my constituency and other urban areas affected by social deprivation. We cannot do anything about that in Parliament or in the Assembly, because Sinn Féin will not allow it.

That is pathetic. It is a disgrace that, while over the past 14 months in Parliament we have reflected on how shabby that is and how we would far rather have local government, there has been no pressure on Sinn Féin. Who decides that we need to coerce engagement or move on with those who continue to frustrate the development of peace, democracy and parliamentary representation in Northern Ireland? That is not a decision for today, but it is going to have to come, and I encourage the Secretary of State to be bold on it.

I asked the Secretary of State earlier about dark money. How do we get people to recognise that if they are not prepared to take up the reins of government in Northern Ireland, this UK Parliament will take the steps for them? Acting on Sinn Féin’s dark money is one way of doing that. For generations, millions of dollars have been flooding into Northern Ireland from the United States—and not just from there. In two weeks’ time, there will be a fundraiser for the Easter rising celebrations in Canada. At least $20,000—given the ticket sale price and the number of spaces available—will be raised there for Sinn Féin in Northern Ireland. Why do I say “Sinn Féin in Northern Ireland”? The answer is clear: the Irish Republic has had the courage to ban foreign donations to political parties within the 26 counties, and in Great Britain we have had the courage to ban foreign donations to political parties, but in Northern Ireland the door has been left open for Sinn Féin to benefit from dark money. We do not need to theorise or speculate about that, or to believe in conspiracy theories, because Sinn Féin’s own fundraisers in the US tell us that they pay for the literature in Northern Ireland election campaigns and pay the phone bills in constituency offices of Sinn Féin Members in Northern Ireland. These people raising money in Canada, America and Australia are continually funding the pursuits of a political party in this United Kingdom via the only part of the UK where this loophole has been allowed to remain open.

Northern Ireland Budget (Anticipation and Adjustments) Bill

Karen Bradley Excerpts

2nd reading: House of Commons & 3rd reading: House of Commons
Tuesday 20th March 2018 Commons Chamber

[The Secretary of State for Northern Ireland (Karen Bradley)]

I beg to move, That the Bill be now read a Second time.

As I set out to the House in my statement last week, in order for the UK Government to uphold their commitments to govern in the interests of all parts of the community in Northern Ireland, a series of steps are now required to safeguard public services and finances. This Bill represents the first of those steps, with further legislation scheduled to follow tomorrow. I should say at the outset that I take these measures with the greatest reluctance; I have deferred action here until it was clear that it would not be possible for a restored Executive to take this legislation forward. But as we approach the end of the financial year, it is important that we proceed now to give certainty as the Northern Ireland civil service looks to continue to protect and preserve public services.

Last year, the UK Government had to step in to ask Parliament to legislate for a 2017-18 budget for Northern Ireland. Again, that was not a step we wanted to take, but it gave the Northern Ireland civil service the clear legal basis required to manage resources and perform the important work it continues to do in the absence of an Executive. The legislation we passed, the Northern Ireland Budget Act 2017, did not set out any direction for how spending decisions should be made; instead it set out in law departmental spending allocations, within which permanent secretaries could deliver on their respective responsibilities. That Act was passed in November, and since then the Northern Ireland civil service has continued to assess where pressures lie across the system and has reallocated resources, as required. In addition, the UK Government committed in November to providing £50 million of support arising from the financial annex to the confidence and supply agreement, to address immediate health and education pressures. Of that, at the request of the Northern Ireland civil service, we agreed that £20 million would be made available in 2017-18, with the remainder to form part of the resource totals available in 2018-19. That additional funding was confirmed in the Supply and Appropriation (Anticipation and Adjustments) Act 2018, which received Royal Assent last week.

As we approach the end of the financial year, those changes must now be reflected in the legal spending authority provided to the Northern Ireland administration, and that is what this Bill does. In addition, it would provide for a vote on account for the early months of next year, to give legal authority for managing day-to-day spending in the run-up to that estimates process. Right hon. and hon. Members may recall that there was no such action this year, with no budget legislation for Northern Ireland before November. This meant that the Northern Ireland civil service had to rely on section 59 of the Northern Ireland Act 1998, and section 7 of the Government Resources and Accounts Act (Northern Ireland) 2001 to issue cash and resources. Those are emergency powers, intended to be used only in the absence of more orthodox legal authority. As we take forward legislation to formalise the budget for last year, I do not consider it would be appropriate if we did not provide the usual vote on account facility to the NICS—a facility we had provided to UK Government Departments through our own spring supplementary estimates process.

To be clear, this is not a budget for the year ahead. The Bill does not seek to set out in legislation the departmental allocations I outlined in my written statement on 8 March. Those will be taken forward via a budget Bill in the summer, exactly as is the case for the United Kingdom finances as a whole. Of course, I hope that this budget Bill will be brought forward by a restored Executive. We must, however, be prepared for the potential that it will again fall to this Parliament to provide budget certainty for the NICS. Nor does the Bill seek to vote any new moneys for Northern Ireland. The totals to which it is related are either locally raised or have been subject to previous votes in Parliament, most recently in the Supply and Appropriation (Anticipation and Adjustments) Bill.

Instead, this Bill looks back to confirm spending totals for 2017-18, to ensure that the NICS has a secure legal basis for its spending in the past year. As such, it formally allocates the £20 million of confidence and supply funding already committed for 2017-18; it is not concerned with any of the £410 million set out in my budget statement, which will be a matter for the UK estimates in the summer, and for a Northern Ireland budget Bill thereafter. Taken as a whole, it therefore represents the minimum necessary intervention to secure public finances at this juncture.

I will turn briefly to the contents of the Bill, as this will largely rehearse the discussion that my predecessor, my right hon. Friend the Member for Old Bexley and Sidcup (James Brokenshire), whom I know will be with us when he has finished dealing with a piece of secondary legislation he is involved with upstairs—[Interruption.] He is here—good. This will rehearse the discussion he had when bringing the Northern Ireland Budget Act 2017 before this House. I am delighted to see him here and I know he will contribute later when he has served on the secondary legislation Committee upstairs.

In short, the Bill authorises Northern Ireland Departments and certain other bodies to incur expenditure and use resources for the financial year ending on 31 March 2018. Clause 1 authorises the issue of £16.1 billion out of the Consolidated Fund of Northern Ireland. The allocation levels for each Northern Ireland Department and the other bodies in receipt of these funds are set out in schedule 1, which also states the purposes for which these funds are to be used. Clause 2 authorises the use of resources amounting to £18 billion in the year ending 31 March 2018 by the Northern Ireland Departments and other bodies listed in clause 3(2). Clause 3 sets revised limits on the accruing resources, including both operating and non-operating accruing resources in the current financial year. These are all largely as they appeared in the 2017 Act, and the revised totals for Departments appear in schedules 1 and 2 of the Bill.

Clause 4 does not have a parallel in that Act. It sets out the power for the NICS to issue out of the Northern Ireland Consolidated Fund some £7.35 billion in cash for the forthcoming financial year. This is the vote on account provision I have already outlined. It is linked to clause 6, which does the same in terms of resources. The value is set, as is standard, at about 45% of the sums available in both regards in the previous financial year. Schedules 3 and 4 operate on the same basis, with each departmental allocation simply set at 45% of the previous year’s. Clause 5 permits some temporary borrowing powers for cash management purposes. As I have already noted, these sums relate to those which have already been voted by Parliament, together with revenue generated locally within Northern Ireland. There is no new money contained within this Bill; there is simply the explicit authority to spend in full the moneys that have already been allocated.

[Lady Hermon (North Down) (Ind)]

The Secretary of State will be well aware that under the allocation to the Executive Office, the detail in the Bill refers expressly to

“actions associated with the preparation and implementation of the Historical Institutional Abuse Inquiry Report and Findings”—

the Hart report. What exactly is going to be implemented and done? It is long overdue—what is going to happen in Northern Ireland as a result of this Bill?

[Karen Bradley]

The hon. Lady and I have discussed this matter in the Northern Ireland Affairs Committee and in the House. As I have said, the Bill agrees the money that has already been spent in respect of the Hart inquiry. That inquiry was set up by the Executive, so it is quite right that the Bill agrees that the money that has already been spent has been properly and lawfully spent.

On the treatment of the victims of historical abuse, the hon. Lady will know that we all want those victims to get the justice that they so rightly deserve. She will also know that the inquiry was set up by the Executive, so the recommendations should rightly be dealt with by the Executive. It is a great shame that we do not have an Executive to deal with these things, but it would be constitutionally inappropriate for this House to determine the actions that should be taken in respect of those recommendations, because this House did not set up the inquiry; it was set up by the Executive, which is the right place for the recommendations to be considered and for the decisions about those recommendations to be taken. I am well aware of the hon. Lady’s point, though, and we will continue to discuss it.

Ordinarily, the Bill would have been taken through the Assembly. As such, there are a series of adaptations in clause 7 that ensure that, once the Bill is approved by both Houses in Westminster, it will be treated as though it were an Assembly budget Act, enabling Northern Ireland public finances to continue to function, notwithstanding the absence of an Executive.

Alongside the Bill itself, I have laid before the House as a Command Paper a set of supplementary estimates for the Departments and bodies covered by the budget Bill. The estimates, which have been prepared by the Northern Ireland Department of Finance, set out the breakdown of the resource allocation in greater detail. As hon. and right hon. Members may note, the process is different from that which we might ordinarily see for estimates at Westminster, where the estimates document precedes the formal Budget legislation and is separately approved. That would also be the case at the Assembly, but as was the case in November, the Bill provides that the laying of the Command Paper takes the place of an estimates document laid and approved before the Assembly—again, to enable public finances to flow smoothly.

[Bob Stewart (Beckenham) (Con)]

Assuming an Executive is reconstituted at some stage during the year—perhaps, say, in six months’ time—would members of that Executive have any ability to fiddle, change or adjust the budget that my right hon. Friend is proposing, or is it set for the year?

[Karen Bradley]

My hon. and gallant Friend is correct that members of the Executive would have the power to change the allocations set out in the budget and to change the decisions that have been taken. He will know that, as I set out in my statement last week, what I did was the bare minimum required to allow the NICS to continue to function and deliver public services. Of course, there are many political decisions that it would not be appropriate to take in this place because we do not have the executive power to do that. The Executive would have that power, so I urge Members of the Assembly to do what they can to come back to Stormont so that they can take Executive decision-making powers there.

I hope hon. and right hon. Members will agree that this is very much a technical step that we are taking as we approach the end of the financial year. It looks backwards rather than forwards, although it does avoid the use of emergency powers for the forthcoming financial year.

[Lady Hermon]

I am extremely grateful to the Secretary of State for allowing me to move on to a completely different topic: the Independent Reporting Commission. Given the sad and most regrettable rise of loyalist paramilitary activity in North Down, I am curious to know what exactly the Independent Reporting Commission, which was set up a previous very distinguished Secretary of State, the right hon. Member for Old Bexley and Sidcup (James Brokenshire), who was in the Chamber earlier but is not present at the moment, does for its money. Paramilitary activity seems to be increasing instead of decreasing, which was its remit when it was set up.

[Karen Bradley]

I had the privilege of meeting Mitchell Reiss when I was in the United States last week, and I think several Opposition Members may also have had the chance to meet him. I expect the Independent Reporting Commission to report its interim findings shortly. Its members will be visiting Northern Ireland shortly, at which point I expect to have a meeting with them. I am well aware of the point that the hon. Lady mentions—it was something I discussed with Mr Reiss in the United States.

[Dr Andrew Murrison (South West Wiltshire) (Con)]

Funding that is apparently destined for the implementation of the recommendations of the Hart report is quite correctly covered in schedule 2, but it is also covered in schedule 3, which seems to conflict slightly with the point made earlier. Will my right hon. Friend clarify the situation? Schedule 3 appears to anticipate spend on the Hart inquiry, which we would all welcome, but she has not said this explicitly.

--- Later in debate ---

[Karen Bradley]

I thank my hon. Friend the Chair of the Select Committee for that point. As I said earlier, the forward-looking expenditure is merely to approve, in the way we would do in the normal Budget process in this House, 45% of spending. We have done exactly the same allocations as in the previous year to enable the moneys to be spent, but the Bill does not give decision-making power to say how the money should be spent; it merely gives approval for money to be spent by those Departments so that they can continue to function. I appreciate that it is not an entirely satisfactory situation, but it is what is required to enable the Departments to continue to function and provide public services. In summer we will of course come through with the full budget process, which I hope will be done by a restored Executive at Stormont. If not, it will have to be done in this House.

[Ian Paisley (North Antrim) (DUP)]

The Secretary of State will know my interest in making sure that it is the perpetrator who pays and is punished, not the taxpayer. Will she ensure that if there is not an Assembly in six months’ time, it will be the institutions that perpetrated those false and indeed horrible, pernicious attacks on innocent individuals that are made to pay, and that it will not be the taxpayer picking up the bill?

[Karen Bradley]

The hon. Gentleman’s comments indicate to the House that there is perhaps not universal support for every recommendation from the Hart inquiry. That is why it is important that we have a restored Executive in Stormont that can make the decisions about those recommendations and enable justice to be delivered.

[Nigel Dodds (Belfast North) (DUP)]

The Secretary of State confirmed the legal position of the Bill and what it purports to do and will do, if passed. Will she confirm that, in respect of the written ministerial statement that allocated £410 million of the confidence and supply money, Government Departments in Northern Ireland will be able to plan on spending that money as of the start of the financial year?

[Karen Bradley]

The right hon. Gentleman is absolutely right. The statement sets out the departmental allocations; the Bill gives parliamentary approval for Departments to start to spend that money. That is what is required to enable that spending to start at the start of the financial year, but it does not set the final allocations; it merely gives approval such that Departments can start to spend. In effect, Parliament is saying that the money can now be spent so that public services can be delivered. The right hon. Gentleman is absolutely right that the £410 million from the confidence and supply agreement that is allocated for 2018-19 is in the allocations set out in the written ministerial statement, and the Departments can work on the basis that they can start to spend that money.

The Bill provides a secure legal footing for the Northern Ireland civil service. It is on that platform that my budget statement last week sought to build. That statement will need to be the subject of formal legislation in the summer as a further Northern Ireland budget Bill. As I have already said, that is a Bill that I sincerely hope will be taken forward by a restored Executive. If required, though, that is something that we as the UK Government would be prepared to progress with, as we uphold our responsibilities to the people of Northern Ireland. In the meantime, it is those allocations that provide the basis for the NICS to plan and prepare to take decisions for the year ahead.

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

We all, of course, want to see the Executive restored, but, in the absence of that in the medium term, does the Secretary of State agree that the way in which we are bringing this process forward, while not satisfactory, is at least progress? However, we need to see further progress in how that money is spent on the ground on much needed services.

[Karen Bradley]

I thank the hon. Gentleman for his contribution. I agree that we all want to see devolution restored. As I have said, I am doing this reluctantly, but I am doing what is required to enable public spending to continue and public services to be delivered. I pay tribute to the civil servants and other public servants who have worked tirelessly for the past 14 months doing exactly that work, and I want to make sure that they can continue to do so.

[Dr Murrison]

My right hon. Friend is being very generous in giving way. I am probably being thick, but can she explain the difference between schedules 3 and 4 —that is to say the difference between “resources authorised” and “sums granted” for the year ending 31 March 2019? Many of the figures look pretty much the same, but clearly there is a difference in the form of words used. I would be very grateful for clarification on that point.

[Karen Bradley]

I suspect that that is a deeply technical point. It would probably be helpful to the members of the Select Committee if I wrote to my hon. Friend and set out exactly what the difference was. However, I want to assure him that we are approving the start of spending, but we are not approving final numbers or how that spending happens as part of the process for 2018-19. What we are approving today is the moneys that have already been spent and making sure that those moneys that have been spent are on a proper statutory footing so that the finances of Northern Ireland and the NICS can be properly dealt with.

As I conclude, I will set out once again a point that I have made several times before: the UK Government are steadfastly committed to the Belfast agreement, and we are completely committed to working to remove the barriers to the restoration of devolution. That is because Northern Ireland needs strong political leadership from a locally elected and accountable devolved Government and that remains my firm goal. However, in its absence, this Bill is a reminder that the UK Government will always uphold their responsibilities for political stability and good governance, and I commend it to the House.

[Owen Smith (Pontypridd) (Lab)]

This is, as the Secretary of State has said, a technical step today. For instant clarity, let me say that we will, of course, support these technical measures and the provisions in the Bill.

I wish to begin by remembering, on behalf of us all in the House, Johnathan Ball and Tim Parry who lost their lives in the IRA atrocity at Warrington 25 years ago today. There has been a commemoration in Warrington today where they are being honoured along with the 54 men, women and children who were injured on that day. I wanted to do that to mark their tragic death and to remind us all of the terrible cost of the troubles and to remind us, too, of the need to complete the journey to reconciliation between communities and to get to a true point of political stability in Northern Ireland. That is something that we should be reminded of today.

[Karen Bradley]

May I thank the shadow Secretary of State for his words? I wish to put it on the record that I add my condolences and thoughts to his. He is absolutely right to reflect that today marks the 25th anniversary of a shocking event that none of us who lived through that time will forget, and it is a stark reminder of how far we have come.

[Owen Smith]

I welcome those words. I was sure that the Secretary of State would reflect on those events.

The Bill does in itself reflect the instability in Northern Ireland and the fact that reconciliation is required. We should remind ourselves, too, that it is actually the seventh year of suspension in the 18 years of the Assembly. It is a measure of some of the problems that we face that we are still in suspension now after 14 months. Other recent comments that have been made in respect of commemorations remind us, too, of the desperate need that we still have for true reconciliation between communities. Although the peace is robust—I know that we all feel that—the reconciliation is still all too fragile.

Notwithstanding the fact that we are discussing a set of technical measures today—it is not formally a budget, as the Secretary of State has explained to us—there are lots of questions to be asked. I hope to pose some of them, including questions about the form of the Bill—what is in it, what is not in it and what should be in it—reflecting some of the comments that have already been made by right hon. and hon. Members.

The first is about the form of the Bill. The Secretary of State said, “We have done something different this year.” She has not done what her predecessor did, which is rely on section 59 of the Northern Ireland Act 1998 to provide 95% of budgets. We have moved to what is in effect a version of the budget and the estimates process that we have for the rest of the United Kingdom at traditional points in the year. The Secretary of State has partially explained why she has done that—because it is an emergency measure—but I still do not completely understand why we have gone down that route. That prompts the question whether this is a further staging post on that famous glide path to direct rule. If that was in the Government’s mind when they went down this route, I urge them to think harder about how they redouble their efforts to try to get things back up and running.

If we are not dealing with a straightforward budget today and if these measures are allocating only 45% of the spending for 2018-19, we will have to have, as the Secretary of State has said, another budget Bill before the summer, which equally makes the point that this is a pretty poor substitute for the sort of scrutiny, intelligence and direction that we would have if we had a Stormont Executive and Assembly setting and scrutinising a budget. Some of the confusion that we have heard about today over the differences between allocations and appropriations and schedules 3 and 4 and about whether we are allowing for spending on the historical institutional abuse inquiry this year is because, effectively, what we have is a piece of cut and paste legislation here. If we read the schedule, it is pretty much exactly, word for word, the same schedule with the same description of the objectives and tasks facing the individual Departments in Northern Ireland as we had in the Northern Ireland Budget Act 2017.

--- Later in debate ---

[Owen Smith]

It will be for the Government and, I hope, for the Executive to make a determination about the balance of payment. My view is that both will have to bear some costs. Some of the Church institutions that were involved will have to bear some of the cost, as happened in the Irish Republic. I think that the costs will be borne by the taxpayers where state-run institutions are involved. The reality is that we all have to recognise—I know that the hon. Gentleman does—that the abuse suffered by those individuals was heinous, and a way must be found for them to be properly compensated. This impasse in Northern Ireland cannot get in the way of that; we need to move forward. In fact, I have a particular question on this matter for the Secretary of State that she might want to listen to.

When I listened to David Sterling, the head of the Northern Ireland civil service, giving evidence to the Select Committee on Northern Ireland Affairs just a month or so ago, my impression was that he is preparing legislation in respect of the HIA. He said explicitly that if there is no Executive in place—he implied by the summer, as that is when the legislation will be ready—he will ask the Secretary of State to introduce legislation in Westminster to give effect to the recommendations of the Hart inquiry. The Secretary of State left a gap at the end of addressing that question, so I just want to be sure that she will introduce such legislation, notwithstanding the fact that we would, of course, like Stormont to do so.

[Karen Bradley]

To be clear, I also heard the evidence given by David Sterling and I have spoken to him about this. Constitutionally, the inquiry was set up by the Executive and reported to the Executive. Unfortunately, the Executive were unable to take decisions on the recommendations before they collapsed. Given the hon. Gentleman’s closeness to this issue throughout his long political career, he will understand that the constitutional implications of the Westminster Parliament or Government taking a decision about something set up by a devolved institution mean that such decisions are not to be taken lightly. But, of course, if David Sterling should write to me with specific requests, I would consider them at that point.

[Owen Smith]

I am grateful to the Secretary of State for that clarification, but she has effectively doubled down on what she said earlier, and that is not good enough. These people have waited long enough. I think that the report came before the Assembly collapsed, and there is widespread political support across the piece that compensation ought to be paid. I therefore hope that, notwithstanding the complications and the sense that we would in some respect be rescinding a measure of devolution, we should find it in this place to legislate and provide the resources. That is the view of the Labour party, and I am sure that the Secretary of State will reflect on that.

[Owen Smith]

The hon. Lady is right. I think that the report came a matter of days after the Executive collapsed. But that does not change my point, which is that there is widespread political support for action. David Sterling clearly thinks that it would be acceptable for us to legislate in this place. I have put on the record that the Labour party thinks that it would be acceptable for us to legislate in this place and that we think that the Secretary of State should do so.

The second area of omission that I wish to bring to the attention of the House is the legacy of the troubles. I know that the Secretary of State is reflecting on this and that it was part of the discussion between the parties in the recent talks that have unfortunately stalled. In the light of the failure of the talks, will the Secretary of State say a little more about whether and how she might bring forward resources and legislation on dealing with the legacy of the past?

[Karen Bradley]

It is probably worth confirming what I have said previously about dealing with the legacy of the past. No doubt, we will talk about this tomorrow during oral questions and the debates on the further legislation that we are bringing forward. I have been clear that the UK Government are committed to setting up the institutions that were agreed in the Stormont House talks process. We will shortly consult on how to set those institutions up, and we remain committed to doing that.

[Owen Smith]

I am grateful to the Secretary of State for that confirmation. I am sure that people in Northern Ireland will find that reassuring. I also ask her to consider the plea made by the Lord Chief Justice of Northern Ireland for a separate set of resources to allow the few remaining legacy inquests to be undertaken in a timely fashion. Some of the people affected are, of course, ill and some have already died. Every passing month leaves injustice hanging in the air. We could also be dealing with that issue in this place.

My third point is that the Bill could and should have included financial provision for a pension for the seriously injured victims and survivors of the troubles. There are still around 500 seriously physically injured survivors, many of whom live in significant financial hardship due to their injuries and the loss of earnings during their lives as a result of the legacy of the troubles. Some believe that we cannot provide a pension for all those 500, as among them are some who were injured by their own hand. I believe that there are six loyalists and four republicans who were injured by their own actions during the troubles. I acknowledge those concerns and the difficulty that this poses. I understand that right hon. and hon. Members have considerable issues with what that would mean for the treatment of victims and for how we move forward in respect of legislation for victims.

Northern Ireland Finances

Karen Bradley Excerpts

Monday 12th March 2018 Commons Chamber

[The Secretary of State for Northern Ireland (Karen Bradley)]

With permission, Mr Speaker, I would like to make a statement on Northern Ireland finances.

Last week, I made a written statement in which I explained that the pressures on public services meant that it was imperative for the Government to take steps to provide clarity to enable planning in Northern Ireland for 2018-19. With great reluctance and in spite of my strong preference for a new Executive to set a budget, I set out in that statement the resource and capital allocations that I considered to be the most balanced and appropriate settlement for Northern Ireland Departments. I did this following intensive engagement with the Northern Ireland civil service and consultation with all the main Northern Ireland parties. In the continued absence of an Executive, I have an obligation to take these and any other measures that are necessary to keep Northern Ireland functioning, but I will only take such measures where they are essential, limited in nature and part of a clear and consistent approach by the Government.

This approach is based on a number of principles. First, we remain steadfast in our commitment to the Belfast agreement; all that we do will be with the purpose of protecting and fulfilling the agreement. But, secondly, we will take those decisions that are necessary to provide good governance and political stability for Northern Ireland, consistent always with restoring the Executive and local decision making at the earliest possible opportunity. Thirdly, we will continue to implement our obligations under the agreement and its successors where possible, always working for the good of the community as a whole. Finally, we will continue to work with all the Northern Ireland parties—and with the Irish Government as appropriate—to remove the barriers to restoring the Executive and a fully functioning Assembly.

The principles at the core of the agreement, and the political institutions that it establishes, continue to have our full and unreserved support. We will uphold the principle of consent, consistent with this Government’s support for Northern Ireland’s place within the Union and while maintaining the constitutional integrity of the United Kingdom. We believe in devolution and the imperative for local decision making by local politicians. We support power sharing on a cross-community basis, based on mutual respect and recognition. We will continue to support and facilitate north-south co-operation, including as we leave the EU, while always preserving the economic integrity of the United Kingdom. We will continue to work closely with the Irish Government in full accordance with the three-stranded approach. And we will continue to act fairly and govern in the interests of all parts of the community in Northern Ireland.

The necessary steps that I have taken and will continue to take are consistent with all these commitments. In addition to the steps I set out last week, there are several associated measures required to further secure public finances, which I will be taking forward. As well as cutting costs, securing efficiencies and beginning to take the steps to transform public services, it is right to look at how income can be increased to protect the public services on which the people of Northern Ireland depend. So I will introduce legislation to set a regional rate, which will increase domestic rates by 3% above inflation. This will make an important contribution to sustainable finances in the long run, with the additional funding addressing urgent pressures in health and education.

I intend to act to extend the cost-capping of the current renewable heat incentive scheme in Northern Ireland, which the Assembly had put in place over a year ago. It would not be acceptable to put finances at risk by simply allowing that cap to lapse. I therefore propose to extend it for a further year from 1 April, the minimal possible step to protect the public purse. I will also confirm the final spending totals for the Northern Ireland Departments for the 2017-18 financial year in legislation, to set supplementary estimates.

I believe that the time is right to address the ongoing public concern about MLA pay in the absence of a functioning Assembly. I thank Trevor Reaney, who was instructed by my predecessor to produce an independent view and recommended a 27.5% reduction to MLA pay. I will seek to introduce legislation to take a power to vary MLA pay. Further to that, I am minded to reduce pay in line with the Reaney review recommendation, but I would welcome full and final representations from the Northern Ireland parties before I make a final decision.

These measures—which I take reluctantly, but which are necessary in the absence of a functioning Executive and Assembly—will deliver the stability and the decisions to enable forward planning for the financial year ahead. But I am clear that they cannot provide the local input and fundamental decisions that are needed to secure a more sustainable future for Northern Ireland. My powers as Secretary of State for Northern Ireland are limited. The scope of this House to pass legislation on the devolved issues that matter for Northern Ireland is limited. This rightly reflects the devolution settlement that is in place and to which this Government are committed. But in the continuing absence of an Executive, there are fundamental decisions in Northern Ireland that cannot be taken, scrutinised and implemented as they should be.

That has been the situation for 14 months already, and in the continued absence of an Executive, it would be irresponsible for us not to consider how we might provide for different arrangements until such time as the devolved institutions are back up and running. Alongside this, I continue to keep under review my statutory obligation to call an Assembly election. I would welcome the views and proposals of the Northern Ireland parties and others on how such arrangements—providing for local decision making and scrutiny on a cross-community basis—might be achieved in the continued absence of an Executive and how any such arrangements might work alongside the other institutions of the agreement.

Let me be clear that this in no way affects my commitment to the Belfast agreement, or my commitment to work to remove the barriers to the restoration of devolution. As the 20th anniversary of the Belfast agreement approaches, I am clearer than ever that Northern Ireland needs strong political leadership from a locally elected and accountable devolved Government, and that remains my firm goal. I commend this statement to the House.

[Owen Smith (Pontypridd) (Lab)]

May I begin by wishing the Secretary of State a very happy birthday for today? I thank her for advance sight of her statement. Of course, we saw most of it last week when the Government effectively published the budget for Northern Ireland in a written statement that came out at 5 o’clock on a Thursday evening, and I have to say that I think that is an unsatisfactory state of affairs; it is a bit discourteous to this House and, more importantly, the people of Northern Ireland to announce what is a £10.5 billion budget affecting key services for 1.8 million citizens in such a manner, with no opportunity for this House to question, challenge or, certainly, to amend those allocations, and in the absence of any accountable devolved Government in Northern Ireland. I am sure the Secretary of State would not think that was a suitable way to set a budget for her constituents in Staffordshire or mine in Pontypridd, and I hope she will explain to the House why the Government felt they needed to do it in that fashion.

Dare I suggest, Mr Speaker, that the real reason for this slightly stealthy announcement is that the Government are a bit embarrassed that just days before the Conservative party is going to vote through the latest rounds of cuts for public services affecting citizens in England, Wales and Scotland, the £1 billion partnership with the Democratic Unionist party means that Northern Ireland alone is being spared? We absolutely welcome that investment in Northern Ireland, but we also need to see investment in health and education and other key public services in every part of the UK, not just the bit where the Tories need DUP votes.

Turning to the substance of the budget, the Secretary of State said last week and repeated a moment ago that, in the absence of an Assembly and with decisions being taken by wholly unaccountable permanent secretaries, some fundamental decisions cannot be addressed. We agree, but it seems to me that some pretty fundamental decisions were taken last week by the Secretary of State, and I wonder whether she might answer some questions about them today.

First, on the decision to put up taxes in Northern Ireland through the regional rate, can the Secretary of State confirm whether that was discussed in detail and agreed with any or all of the parties in Northern Ireland? Secondly, in respect of the decision to significantly increase the budgets for some individual Departments, can she explain to the House the reasons for an increase for the Department of Justice of £36 million, or 70%, on last year, an increase for the Department of Agriculture, Environment and Rural Affairs of £40 million, or 110%, on last year’s budget, or the increase for the Department for Communities of £38 million, or 30%, on last year? I am sure that there are good reasons for all those increases and for the significant cuts that are made to some of the administrative Departments elsewhere, but the House and the people of Northern Ireland deserve some explanation why the decisions were made and by whom.

As I said, I welcome the extra resources for Northern Ireland, including the extra £80 million for health and education and the extra £100 million to transform the health service in line with the Bengoa report, but will the Secretary of State spell out how that £80 million on health and education will be divided? Who will make the decision about the appropriate allocation? Is that something that the DUP co-ordination committee will be discussing with the Conservative Government, or has it already been discussed?

The Secretary of State talks about big health reforms, and she will be aware that some of the reforms mentioned in Bengoa and other health plans related to hospital closures and other changes to the configuration of health services. Does she imagine that such big decisions could be taken by civil servants? If not, what exactly is the £100 million to be spent on?

The gravity of the issues at hand and the scale of the decisions being taken merely serve to underline the grave crisis that we face in Northern Ireland 14 months after the Executive collapsed and power sharing ended. I welcome the Secretary of State reiterating her commitment to the Belfast agreement and the principles of consent and power sharing that underpin it, especially in the light of recent attempts by some to undermine the agreement. However, we need more than more tireless activity; we need to see some success in the forthcoming negotiations if we are to get to next month’s 20th anniversary with a real sense of optimism about the future of the agreement and of power sharing.

The Secretary of State was at pains to point out that she does not anticipate any failure in the negotiations, but the House and the country will have been struck by the acknowledgement that she thinks that she may need to consider alternative means of keeping the agreement and political accountability alive in the absence of an Executive. That raises important questions about feasibility, given that some parties will not want to take part in a shadow or other form of Assembly, and about the form of any alternative. It also raises a significant risk, of which I hope she will take particular note. Moving to an alternative form of Assembly would take pressure off the parties to come to an agreement that allows them to re-engage in meaningful power sharing. Does she acknowledge that risk in any shift away from the agreement?

Finally, I urge the Secretary of State to ensure that this is the last time we push through a budget using this unsatisfactory process and the last time that a budget is set by this House and not Stormont, where it ought to be set.

[Karen Bradley]

I thank the hon. Gentleman for his kind words about my birthday. I was not expecting to spend it making a budget statement, but there we go. I join him by saying that I hope that this is the last time that I have to stand at the Dispatch Box having taken such action, because we all agree that such decisions should be taken by locally elected politicians. The people who elected their politicians in Northern Ireland want them to take such decisions. I genuinely believe that those politicians want to take those decisions. There are, as he knows and as we have discussed previously, some issues on which the parties cannot agree, but I believe that we can get to a point at which a devolved Government can get up and running. That is what I am determined to achieve. Everything that I have done and set out today is in line with that aim. I want to see a devolved Government back in Stormont. The decisions that have been taken, while difficult, are those that needed to be taken for the public services, but I have taken them in the light of the fact that I do not want to undermine the constitutional arrangements and devolution settlement in Northern Ireland.

As for timing, the hon. Gentleman will recall that I committed to lay a budget by last week when I appeared in front of the Northern Ireland Affairs Committee the week before last. That is why it was important to get the written statement out last week, and I am here at the earliest opportunity to explain things to the House and to take questions from right hon. and hon. Members. However, it is important to put it on the record that I did not publish the statement until I had had the chance to show it to all the main parties represented at Stormont and until they had had the opportunity to see the allocations. My fervent hope is that they will actually deliver the budget, which is why it is important that they were all consulted on the work that had been done.

I pay tribute to my officials and the civil servants of the Northern Ireland civil service. They have worked incredibly hard and selflessly to help to deliver the budget in a way that is uncomfortable for many. They want political direction from politicians, and it is difficult for them to do without it. They have gone above and beyond anything that we would expect of civil servants.

As for the decisions on the allocations, I looked at the key Departments. The hon. Gentleman asks about Justice, and I wanted to ensure that there was money to protect the policing budget, which he will recognise is very important. He asked about the £100 million from the confidence and supply arrangement for health transformation. That was money that the Government recognised and agreed needed to be spent in Northern Ireland because of its unique circumstances. I actually visited the hospital in Derry/Londonderry only last Monday and met consultants and managers, and it was clear to me that health transformation is a priority and that we need to ensure that the money is spent. I have taken legal advice to ensure that the money goes towards the priorities on which it is designed to be spent.

The hon. Gentleman asks about the alternative approaches, and he will know that many have suggested ways to arrange some form of functioning Assembly or scrutiny at Stormont. I am considering all the suggestions, a number of which have been made by the parties, and I would welcome further suggestions. I am taking legal advice on them all, because I do not want to do anything that undermines what we have achieved in the 20 years since the Belfast agreement. However, if there is a way of getting ourselves back on the road to a functioning devolved Government in Stormont, with scrutiny being applied by locally elected politicians, we should endeavour to try to find that route.

[Several hon. Members rose—]

[Dr Andrew Murrison (South West Wiltshire) (Con)]

Nevertheless, Mr Speaker, I hope that you will allow me to add my best wishes to the Secretary of State on her birthday. I welcome the statement, particularly the bit in which she invites comments about how we might close the democratic deficit in Northern Ireland. The Northern Ireland Affairs Committee has many helpful suggestions, and we will certainly be sending them to her.

I draw my right hon. Friend’s attention to the written ministerial statement made on Thursday and the bit in which she says:

“Permanent Secretaries cannot… take the full range of decisions that would be available to Ministers”—[Official Report, 8 March 2018; Vol. 637, c. 20WS.],

which is, of course, perfectly correct. She goes on to say that Ministers will be helpful in offering guidance. May I press her on exactly what form that guidance will take? She has set out departmental expenditure limits, but there is little granularity—certainly in the public domain—about what actually constitutes those DELs.

[Karen Bradley]

I thank my hon. Friend, the Chair of the Northern Ireland Affairs Committee, for his good wishes, for his question and for the Committee’s work in looking at devolution in Northern Ireland. I was pleased to give evidence to the inquiry, and I know that the Committee has visited several institutions and other places in Northern Ireland to consider what might be done. I look forward to the Committee’s recommendations.

In the absence of ministerial direction from Stormont, my hon. Friend is right that there is concern about the work that civil servants can do. We have worked closely with them, ensuring that legal advice is received at all points, so that they have the support they need to take decisions based on those that were previously taken by the Executive or that the Executive had indicated would have been taken. I have written to the permanent secretaries to set out my view and to provide guidance on how any money, such as the health transformation money, should be spent in line with the Bengoa recommendations.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

I thank the Secretary of State for early sight of her statement, and I join the House in wishing her a very happy birthday. I will begin by making absolutely clear my view that while money needs to be allocated for the continued funding of public services in Northern Ireland, those matters should more properly be addressed by locally elected representatives. The decision to increase rates, for example, is a policy decision that reverses a key Stormont policy.

I am sure that none of us wants to be here again, but here we are, in order that the behind-the-scenes machinery of government that keeps the lights on and keeps people’s wages being paid can continue. We must at all times, however, keep in mind the fact that the restoration of devolved government in Northern Ireland is the principal aim. I was pleased that the Secretary of State continued to welcome the views and proposals of the Northern Irish parties and others on how local decision making and scrutiny on a cross-community basis might be achieved. Would she tell us a little bit more about how those views and proposals might be canvassed more transparently and shared with Northern Irish citizens?

With regard to confidence and supply agreement moneys, while of course no one ever begrudges extra money spent on health or education, the sum of more than £400 million is part of the £1 billion that the Democratic Unionist party extracted from the Conservatives to prop up the Government. In view of the considerable concerns about the deal and, indeed, recent concerns about the transparency of the political donations process in Northern Ireland, when can we expect further details about what the extra money will be spent on? Will the Secretary of State explain the destination of the money before the House separately from the allocation of funds required to continue funding public services? It is worrying that we appear to be stepping into a zone where money is allocated without close ministerial direction, and we have not yet seen any criteria for how that money will be spent. Will the Secretary of State commit to providing much greater transparency on the spending of the DUP deal money and lay the full details before the House?

[Karen Bradley]

Again, I thank the hon. Lady—I feel that I may be thanking everyone for their good wishes—for her kindness. She asked about alternative approaches. I invite any parties with suggestions about how this could function and how we might have some form of Assembly functioning with scrutiny in Stormont, but I will have to take legal advice on everything that is proposed. If a suggestion gathers cross-party support, we would want to talk about that with others so we ensured that we could deliver something that everyone was confident would put us back on the route to devolution, not away from it. That is my key priority.

The hon. Lady also asked about the money for the confidence and supply arrangement. She will know that the agreement is on the internet, and is available for everyone to see and download. She should also recognise that these are important changes, particularly to infrastructure. The York Street interchange, for example, is something that anyone in Belfast will know is crying out for investment and change. That is why the Government want to make sure that money is spent on the things on which it needs to be spent, including health transformation, in line with the Bengoa recommendations.

[Bob Stewart (Beckenham) (Con)]

Does my right hon. Friend think that the allocations in the budget largely suggested by the Northern Irish civil service, which is pretty canny, would be very different if the same civil service was advising a Northern Irish Executive, which is obviously not working at the moment?

[Karen Bradley]

Clearly, my hon. and gallant Friend is right that those are conversations that the Northern Ireland civil service has had with the parties as well as with the UK Government. It has been incredibly professional in ensuring that it looks at both the decisions made by the Executive before they collapsed and their programme for government. It reflects the priorities of the UK Government in ensuring that health, education and policing are protected.

[Nigel Dodds (Belfast North) (DUP)]

May I join hon. Members in wishing the Secretary of State every best wish on this momentous occasion? May I thank her for early sight of the statement and for the Government’s clear support in that statement once again for Northern Ireland’s place within the United Kingdom? That is very welcome.

I welcome the budget statement and the £410 million extra for Northern Ireland as a result of the confidence and supply agreement. It will be spent on infrastructure, health and education, and will go to deprived communities, to mental health, to east and west, urban and rural, nationalist and Unionist—everyone benefits. That is a good news story for Northern Ireland, and it has been welcomed across Northern Ireland.

May I also welcome the fact that the Secretary of State said in the statement that she would take a series of decisions—the Government were beginning to take those decisions—for the good government of Northern Ireland? That is long overdue, and I welcome the series of measures that she has announced. I warmly welcome her willingness to look at arrangements that provide for local decision making and scrutiny on a cross-community basis in the meantime. She can be assured of our full support and engagement in that process. We want devolution up and running—she knows that we would form the Executive tomorrow on the basis of the agreed programme for government with Sinn Féin, and we welcome all efforts to return proper decision making to Northern Ireland.

[Karen Bradley]

I thank the right hon. Gentleman for his good wishes and for his comments. I thank the DUP for the role that it played, along with all the other parties, in working with the Government to deliver the budget and ensure that we were able to reflect the priorities of the parties of Northern Ireland.

The right hon. Gentleman is right that the confidence and supply arrangement money that we have released will absolutely be spent on a cross-community basis, for all communities, and for all parts of Northern Ireland, dealing with issues that have perhaps been underfunded in the past or, particularly in the case of infrastructure arrangements, very much need funding today. I thank him for his kind words.

[Maria Caulfield (Lewes) (Con)]

I welcome the review by the Secretary of State of pay for Members of the Legislative Assembly. On a separate matter, does she think it is unsustainable for hon. Members who do not take their seats in Parliament to continue to receive representative money for political campaigning?

[Karen Bradley]

Clearly, the matter to which my hon. Friend refers is a matter for the House, and I know that there are hon. Members who are well versed in the procedures needed for such matters. The issue of MLA pay is something I need to look at as a result of the review by Trevor Reaney, and I would welcome representations from all about that matter.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

May I, too, thank the Secretary of State for advance sight of the statement? The measures that she has brought to the House are to be supported. It is sad but inevitable that it should have to happen this way, but all that we are doing is treating the symptoms, not the underlying disease.

The Secretary of State will have seen the recent comments of the chairperson of the Policing Board about the need for proper accountability of policing in Northern Ireland. The fact that the Police Service of Northern Ireland spends £125,000 a day on overtime demonstrates that the chairperson of the Policing Board is right, and is that not something else that needs to be tackled?

[Karen Bradley]

The right hon. Gentleman makes a point that demonstrates once again why we need devolved government in Stormont. I have met the chair of the Policing Board, and I have also spoken to the Chief Constable about this matter. They are both keen that political representation on the Policing Board should be restored as soon as possible so that there is proper governance. I will be in Washington at the end of the week for the St Patrick’s day events there, and I believe that the chair of the Policing Board will be there too, and I hope to catch up with her and discuss how we might make that a reality.

[Mr Philip Hollobone (Kettering) (Con)]

My constituents in Kettering were under the clear impression that the main purpose in life of Sinn Féin was to avoid at all costs direct rule from Westminster. Is it not clear but ironic that by refusing to reach an agreement with the DUP Sinn Féin has brought about exactly the thing that it has always campaigned to avoid?

[Karen Bradley]

I do not want to get into the whys and wherefores of what happened in the talks process. All I know is that all parties have given me a very strong commitment that they want to go back into devolved government, and I am seeking to find ways to make that a reality.

[Lady Hermon (North Down) (Ind)]

I listened carefully to the Secretary of State’s statement and noted that she was decisive in announcing an increase in rates in Northern Ireland. I was extremely disappointed, to put it mildly, that she continues to dither about cutting the salaries of MLAs. Does she not recognise and accept that it is morally indefensible that MLAs should continue to receive their full salary in the absence of a functioning Assembly for 14 months?

[Karen Bradley]

The hon. Lady sums up the comments that have been made to me by members of the public across Northern Ireland, but I do want to make sure that everybody has the chance to make representations on this matter, so that the power we can legislate for in Westminster is used appropriately. I also want to say, as I have said to her at the Select Committee, that, although there are good grounds to look at the pay of MLAs, I do not think the pay for staff should be affected. I think we would all agree that our staff do fantastic work and they need to be properly remunerated for the great work they do for the constituents of the MLAs.

[Nigel Mills (Amber Valley) (Con)]

I welcome the statement, but does my right hon. Friend agree that the fact that this year, unlike with the previous budget, she has had to take some decisions that could not have been thought through by the Executive before they fell means that today we are several steps further towards direct rule than we were a couple of weeks ago?

[Karen Bradley]

I do not agree with my hon. Friend. A budget needed to be balanced. These steps were taken to balance it. I have done so while being consistently mindful of the need to make sure we maintain the position of restoring devolved government wherever possible.

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

In welcoming the statement, I concur with others in wishing the Secretary of State a happy birthday. Going out to consultation on the MLA salary issue and the office costs allowances is a good move. Does she agree that it would be intolerable to move on that if the House were not also to move on the issue of MPs from Sinn Féin? They deliberately boycott this House, whereas MLAs are prevented from doing their full job.

--- Later in debate ---

[Karen Bradley]

I thank the hon. Gentleman for his kind words. He will know that the matter he raises is one for the House, but the House will have heard the strong words from both sides on the matter.

[Edward Argar (Charnwood) (Con)]

May I start by paying tribute to my right hon. Friend and her predecessor for their tireless work to try to restore devolved government to Northern Ireland? Will she reaffirm that her clear commitment to working for that restoration of devolved government goes hand in hand with her clear commitment to ensuring that, while that work goes on, through this budget the people of Northern Ireland continue to receive the services and investment they need?

[Karen Bradley]

I thank my hon. Friend for his question. He seems to have a frog in his throat and he did well to deliver his question without starting to cough too much. I agree that it would just not be tolerable for the UK Government to not do what was necessary to enable public services to continue to be delivered. The people I have met in Northern Ireland have been very dedicated public servants and they do deserve that, so that they can continue to deliver the schools, hospitals and policing, and all other manner of public services, that the people of Northern Ireland need.

[Kate Hoey (Vauxhall) (Lab)]

The Secretary of State has said that some fundamental decisions cannot be taken in Northern Ireland at the moment. How long will she go on accepting that before she decides that we have to go further and appoint Ministers? Will she make a decision in the next month, please, on the Commonwealth youth games, which are to be held in Northern Ireland in 2021? If a decision is not taken by the end of this month, we will lose those games.

[Karen Bradley]

The hon. Lady, who was a great sports Minister, knows exactly what the problem is, and I remember it from my previous brief. Belfast has been awarded the 2021 Commonwealth games but the absence of an Executive and Ministers to sign the appropriate documentation and contractual information means that there is great difficulty. I am looking at how we can resolve many of these issues, and that one is certainly on my table at the moment.

[Paul Masterton (East Renfrewshire) (Con)]

I welcome the Secretary of State’s statement, particularly the long overdue announcement that some action will be taken on MLAs’ pay. She said in her statement that she is looking for full and final representations from the Northern Irish parties. Will she also be seeking further representations from voluntary sector, third sector and community groups, many of which have had to fill the gap left by MLAs? Not only are they not carrying out parliamentary duties, but many of them have been completely absent in their constituencies.

[Karen Bradley]

I would welcome representations from all. Trevor Reaney’s work and recommendations, for which I thank him, are very valuable and helpful, but it would also be helpful to hear the views of all parties and all sides on this matter.

[Sammy Wilson (East Antrim) (DUP)]

We welcome the fact that the Government have now announced a budget for Northern Ireland. Does the Secretary of State recognise that hundreds of decisions about how that money is spent require some input from a Minister? Will she give a commitment that those issues will be addressed by the promises she has made to the House today to look at further measures?

[Karen Bradley]

On the budget I have spoken about today, I am confident that the direction is there for civil servants to deliver as required and as wanted by all parties. The right hon. Gentleman is right that many decisions are awaited. It is frustrating for all of us, as it is for him, that in the absence of devolved administration in Northern Ireland some of those decisions have not yet been taken.

[Michelle Donelan (Chippenham) (Con)]

I agree with my right hon. Friend that it is deeply regrettable that she has had to take the actions set out today in regard to a budget for Northern Ireland, which are no substitute for local Ministers on the ground making decisions. Will she assure the House that she will do everything to prevent any return to direct rule?

[Karen Bradley]

My priority is to restore devolved government in Northern Ireland. For the good of the Union and for the good of the people of Northern Ireland, that is the right thing to do. It is also worth putting on the record that that is the primary aim of the Irish Government as well. I want to put on the record my thanks for their support in the talks process, and I know that they are committed to restoring devolved government, as we are.

[David Hanson (Delyn) (Lab)]

Could the Minister set a timetable for her consideration of a halfway house on some of the scrutiny issues that have been mentioned by Members across the House? She would have support on allowing MLAs to table questions, to meet as committees and to scrutinise decisions. As a direct rule Minister, I know there were hundreds and hundreds of decisions taken every day by Ministers that are now not being taken. There needs to be scrutiny of those taking those decisions.

[Karen Bradley]

I know the right hon. Gentleman served as a direct rule Minister, in 2004-05 or around then. He was distinguished in doing so—

[Owen Smith]

It was 2005-06.

[Karen Bradley]

I am being corrected by the Opposition Front Bencher.

[Stephen Pound (Ealing North) (Lab)]

It doesn’t happen very often.

[Karen Bradley]

It always happens.

The right hon. Gentleman is right to say that these decisions do need to be taken. We do want to see devolved government. We want decisions and scrutiny to be undertaken in Stormont. That is the right place for those things to happen. I am not going to put a timeframe on it because we need to find something that has consent. As he will know, under the Belfast agreement, for constitutional changes in Northern Ireland, we would need the consent of all communities. Therefore, I do need to work through all the suggestions that have been put to me, but I would welcome suggestions from him, given his extensive experience of doing the job.

[Kevin Foster (Torbay) (Con)]

I would not really welcome this statement, but it is the right thing to do and it is the right approach, given the pressures to deliver public services. We would much rather these decisions were being taken back in Stormont, where they should be taken. Does my right hon. Friend agree that this is not just about financial management and about getting the Assembly going again? It is also about the range of decisions that need to be delivered, based on an agreed programme of government—not just relying on the UK Government to step in when they absolutely have to.

[Karen Bradley]

I agree. My hon. Friend sums the situation up very well.

[David Simpson (Upper Bann) (DUP)]

I welcome the Secretary of State’s statement. Will she outline for the House what actions she intends to take on efficiencies within the different Departments, which she mentioned in her statement?

[Karen Bradley]

The hon. Gentleman will know that the Northern Ireland civil service had started work on efficiencies before the Executive collapsed. Those things had been talked about within ministries while there were Ministers in place at Stormont, so this is about working forward from the programme of government to deliver those efficiencies, which Ministers had previously been looking at. I recognise that this is all terribly difficult to explain, but we are working within the boundaries of what we can.

[Karin Smyth (Bristol South) (Lab)]

I very much welcome the strong commitment in the statement to the Belfast Good Friday agreement. There is no doubt that Northern Ireland needs the funding—indeed, an end to austerity would be welcome in Bristol South and the rest of the United Kingdom—but in tying up the money for confidence and supply, the strength of that case is undermined. What impact assessment has the Secretary of State done on the confidence and supply money?

[Karen Bradley]

As I have said, the agreement on the confidence and supply money is publicly available on the internet. It recognised the priorities and the issues that needed support and additional funding. This process has not been easy—balancing a budget is never easy—but we have done it while mindful of the commitments made in the confidence and supply arrangements and the previous work that had been done.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Will the Secretary of State confirm that not all political parties—for instance, the Social Democratic and Labour party—were consulted on the actual content of the budget? Will she outline who made the political decisions in relation to the budget?

[Karen Bradley]

As the UK Government, we have had to take those decisions. I ensured that all parties saw the statement and the allocations and were allowed input into them, not only before last Thursday, when I got the final figures, but during that period, to ensure that they were all able to contribute to the work that we were doing.

[Emma Little Pengelly (Belfast South) (DUP)]

I thank the Secretary of State for her statement and welcome the budget, but key decisions are urgently required, such as on the support for the victims of historical institutional abuse and on legacy. Will the Secretary of State confirm that she has been informed by Departments that, unless key decisions are made, and made urgently, they will not be able to balance the budgets in those Departments for the next year?

[Karen Bradley]

That is not the advice that I have had from permanent secretaries. The hon. Lady is right to refer to two additional issues: the concerns about legacy and about the victims of institutional abuse. On legacy, the UK Government are committed to consulting on the Stormont House agreement and to setting up the relevant bodies. On historical abuse, the Hart inquiry was set up by the Executive before it collapsed, so it is constitutionally very difficult for any other party or Government to consider its recommendations; it was not a review instigated by the UK Parliament or UK Government. The hon. Lady absolutely describes the tension of the situation we are operating within.

[Paul Girvan (South Antrim) (DUP)]

I thank the Secretary of State for the statement and wish her many happy returns. It is interesting to note that the message that we are receiving from civil servants and permanent secretaries is that they cannot move on and make decisions as to where money should be spent. In the absence of an Assembly, and given that there is unlikely to be one for the foreseeable future, it is vital that we have Ministers making decisions—if not the Secretary of State, it should be other Ministers. When is that going to happen?

[Karen Bradley]

I have attempted to deliver in the budget the financial certainty that is needed to enable the public services to continue. If devolved government were up and running in Stormont, Ministers in Stormont would be able to amend the way in which the budget operates, but I have done what I had to do to enable public services to continue and for public servants to have some certainty, within the restrictions of what is possible for me as Secretary of State for Northern Ireland.

[Gavin Robinson (Belfast East) (DUP)]

I wish the Secretary of State many happy returns; she has had cross-party agreement on that. I understand her caution, concern and reluctance to advance issues of direct rule but, on the statement and on providing a soft landing for that perpetual glide path that we have had for the past 14 months, may I encourage her to be bold and to provide the political opportunities for decision making for the benefits and interests of all the people in Northern Ireland, and to do so with confidence?

[Karen Bradley]

I thank the hon. Gentleman for his good wishes. I am committed to the Belfast agreement and the institutions that were set up under it. I want things to be in such a position that those institutions can be up and running and delivering for the people of Northern Ireland, with the politicians they elected delivering for them. That is what I am determined to do and I do not want to undermine that in any way. That is the very difficult balancing act that I have been operating under. I wanted to make sure that civil servants have the certainty and money that they need, but without undermining anything. I would welcome any suggestions from the hon. Gentleman and others about the sort of constitutional arrangements that could be put in place to get us back to devolved government.

Finances

Karen Bradley Excerpts

Thursday 8th March 2018 Written Statements

[The Secretary of State for Northern Ireland (Karen Bradley)]

During the course of the past 13 months, in the absence of an Executive and Assembly in Northern Ireland, the UK Government have worked tirelessly to facilitate the restoration of devolved Government. It had been my firm hope that a new Executive would be in place to set a budget. That will now not be possible in time for plans to be put in place for the forthcoming financial year.

Yet there are acute pressures across public services to be addressed in 2018-19, and clarity is required now to enable planning to proceed for the year ahead. It is now imperative, therefore, that the UK Government provide clarity and certainty around Northern Ireland finances for 2018-19.

2018-19 Budget allocations

I set out below the resource and capital allocations which I consider to be the most balanced and appropriate settlement for Northern Ireland Departments. It would be open to a restored Executive, of course, to consider and revise the position I have set out.

In deciding on these allocations I have engaged intensively with the Northern Ireland Civil Service (NICS) to understand the needs of Departments as they continue to work to deliver the draft programme for Government. I have reflected too on the response to the budget briefing published by the NICS before Christmas, and discussed the budget situation with the main parties in Northern Ireland.

In the absence of local Ministers, and given the proximity of the next financial year, it would not be appropriate for the UK Government to seek to take fundamental decisions about service delivery and transformation at this time. Yet we must act to secure public services and enable NI departments to meet urgent pressures in health and education. That is what this budget settlement will do, by protecting and preserving public services within challenging fiscal constraints.

On the resource side, it delivers real-terms increases for health and education from their 2017-18 opening baseline. It also delivers cash terms increases for the Departments of Justice; Infrastructure; and Agriculture, Environment and Rural Affairs. Elsewhere, Departments would either be cash-flat or see small decreases, with notable reductions only for the two central Departments (Finance and the Executive Office). For capital, it provides a strong basis for investment and enables key flagship projects to progress.

Confidence and Supply funding

This settlement also delivers £410 million in financial support arising from the financial annex to the confidence and supply agreement between the Conservative Party and the Democratic Unionist Party.

This includes £80 million in support for immediate health and education pressures; £30 million to support programmes to address issues of mental health and severe deprivation; £100 million for ongoing work to transform the health service in line with the broad-based consensus fostered by the Bengoa report; and a £200 million boost in capital spending for key infrastructure projects. Furthermore, in recognition of the lack of opportunity for more fundamental service reconfiguration over the last 12 months, this Budget position allows for £100 million in flexibility to enable existing capital funding to be used to address public services resource pressures in 2018-19. This additional funding will be transferred in due course only with Parliament’s full authorisation, in line with the long-established estimates process.

Transformation

But, as the NICS budget briefing made clear, transformation is needed in a number of areas to make services sustainable in the long term. The urgent work to prepare for this must proceed. To that end, the budget includes a £4 million fund to prepare the ground for transformation, alongside the £100 million set out for health transformation above. I also recognise that this budget only allocates resources for 2018-19 and the NI Departments will need urgently to plan for future years. In that context, it is right that the NICS should continue to take forward preparatory work which could assist with balancing the budget in 2019-20. This will ensure that options are kept open for a restored Executive to consider as part of future budget processes.

Regional rate

As part of setting a budget, it is essential that the UK Government provide clarity on the regional rate. This budget position has been constructed on the basis of an increase in the domestic regional rate of 4.5%. I consider that this is a necessary and important step to continue to support public services, particularly in health and education. The non-domestic rates would rise only at 1.5%, in line with inflation. Conscious of the interest of many stakeholders in the scheme, I can also confirm that this budget settlement would provide the basis for the small business rate relief to continue.

Implementing decisions within the overall allocations

This statement outlines overall allocations, based on my assessment of the options currently available to the NI Departments. To the extent possible, the consequent prioritisation of resources within NI Departments will need to be undertaken by permanent secretaries, as has been the case during the past year. The position will be monitored throughout the year and, where possible, resources reallocated to the highest priority areas in the normal way.

Permanent secretaries cannot, of course, take the full range of decisions that would be available to Ministers. In that context, the UK Government shall continue to support the Northern Ireland Administration, and to do whatever is necessary to meet our responsibilities to the people of Northern Ireland.



Annex of tables can be viewed online at:

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2018-03-08/HCWS527/.

[HCWS527]

Northern Ireland

Karen Bradley Excerpts

Tuesday 20th February 2018 Commons Chamber

[The Secretary of State for Northern Ireland (Karen Bradley)]

With permission, Mr Speaker, I should like to make a statement on the current political situation in Northern Ireland.

Over recent weeks there have been talks involving the main political parties in Northern Ireland, particularly the two largest parties, the Democratic Unionist party and Sinn Féin, to see whether there is a basis for re-establishing the Executive. The UK Government have facilitated and supported those intensive negotiations. We have been in close touch with all the parties and have responded to requests for advice and support.

The Irish Government have also been involved, in accordance with the well established three-strand approach. I would like to place on the record my appreciation of the contribution made by the Irish Foreign Minister, Simon Coveney, and his team. In addition, my right hon. Friend the Prime Minister has been consistently and closely involved, speaking to party leaders and visiting Belfast last Monday. I have continued to give her up-to-date reports as the talks have progressed.

The aim of the talks has been very clear: to bring about the re-establishment of inclusive devolved government at Stormont, which Northern Ireland has effectively been without for over 13 months. In so doing, we have been able to build on the progress made by my predecessor, my right hon. Friend the Member for Old Bexley and Sidcup (James Brokenshire), whom I warmly welcome back to the House today.

In the Government’s view, all parties, including the DUP and Sinn Féin, participated in discussions seriously and in good faith, and we believe that progress towards reaching agreement on all the key substantive issues has been made. It became possible, in the light of this progress, to identify a basis for a possible agreement to allow an Executive to be formed, embracing how the parties ensured that the Executive was sustainable, how they reached a balanced and fair accommodation on the difficult issues of language and culture, and how this was reflected in a package of legislation. Many other issues were also addressed, if not always resolved.

Unfortunately, however, by last Wednesday it had become clear that the current phase of talks had reached a conclusion without such an agreement being finalised and endorsed by both parties. As I said then, it is important for everyone to reflect on the circumstances that have led to this, and on their positions both now and in the future. What is important today is for me to give some directions on the next steps.

First, as our manifesto set out at the last election, the Government believe in devolution under the terms of the 1998 Belfast agreement. We want local politicians making decisions on local matters to be accountable to a local Assembly. We need devolved government to help deliver a stronger economy, to build a stronger society, and to ensure that Northern Ireland’s voice is properly heard as we leave the European Union. In addition, we want to see all the other institutions of the agreement operating in the way that was intended.

I cannot reiterate too strongly that devolved government is in the best interests of all the people of Northern Ireland, because it ensures that their interests and concerns are fairly and equitably represented. It is also in the best interests of maintaining and strengthening the Union, to which the Government remain fully committed, consistent with the principle of consent. We will therefore continue to explore with the parties whether the basis for a political agreement still exists. As my right hon. Friend the Prime Minister has reaffirmed, we stand ready to introduce the legislation that would enable an Executive to be formed at the earliest opportunity. That is the Government’s clear hope and desire, and I believe that our view is shared widely on both sides of the House.

Secondly, however, matters in Northern Ireland cannot simply remain in a state of limbo. A number of challenging decisions will have to be made. Ultimately, the Government have a responsibility to ensure good governance and the continued delivery of public services. In particular, as the head of the Northern Ireland civil service has made clear, there needs to be certainty and clarity on a budget for Northern Ireland for next year as soon as possible. I intend to take steps to provide that clarity, and I will update the House as soon as I am in a position to do so. This is clearly not where I want to be, but in the absence of an Executive in Northern Ireland I have no other choice.

In the longer term, the Government will not shirk their responsibility to take whatever steps are necessary to provide certainty and stability for the people of Northern Ireland, while maintaining our commitment to govern with rigorous impartiality in the interests of all of them. However, we will do that only once we are sure that all other viable options designed to restore devolved government have been properly considered, including my current statutory obligation to call an Assembly election.

In the absence of devolution, it is also right for us to consider the issue of salaries for Assembly Members. At the end of last year, my right hon. Friend the Member for Old Bexley and Sidcup received recommendations on that from Mr Trevor Reaney, a former Clerk of the Assembly. The Government will need to decide shortly on the next steps. I acknowledge the public concern about the fact that while a number of Assembly Members continue to carry out constituency and representative functions, current salaries are maintained while the Assembly is not meeting.

As for the issue of addressing the legacy of Northern Ireland’s past, the Government have manifesto commitments to consult on the implementation of the bodies set out in the 2014 Stormont House agreement, and to support the reform of inquests. I would much prefer to do that in the context of an agreement that would lead to the restoration of a devolved Executive, but I am conscious of the Government’s responsibility to make progress in this respect to provide better outcomes for victims and survivors—the people who suffered most during the troubles. We will therefore continue to proceed towards a full consultation as soon as possible, so that everyone can have their say.

As the House will know, April marks the 20th anniversary of the historic Belfast agreement. That agreement, along with its successors, has been fundamental in helping Northern Ireland to move forward from its violent past to a brighter, more secure future. The Government’s support for those agreements remains steadfast, as does our commitment to govern for everyone in Northern Ireland.

There is no doubt that Northern Ireland has taken huge strides forward in the past 20 years. In my short time as Northern Ireland Secretary, I have seen a place full of wonderful talent and huge potential, but any commemorations this year will look decidedly hollow if Northern Ireland still has no functioning Government of its own. Everyone must continue to strive to see devolved government restored and to build a Northern Ireland fit for the future, and that remains the clear focus and determination of this Government.

[Owen Smith (Pontypridd) (Lab)]

May I thank the Secretary of State for advance sight of her statement? I also thank her and her predecessor, the right hon. Member for Old Bexley and Sidcup (James Brokenshire)—whom I am delighted to see back in his place in this House today—for all the efforts they have both made, alongside the Irish Government, to facilitate agreement between the parties.

All of us in this place know that these are very difficult issues, and I commend all the parties in the talks, especially the DUP and Sinn Féin, on the total engagement they have shown on behalf of their communities. I have to say that I must also commend the Secretary of State on the Herculean optimism she continues to hold to in still hoping for a deal to be done and on the clear statement that she is rejecting the calls to accede to direct rule with immediate effect. Optimism is a vital ingredient in Northern Ireland, even when it is at its most difficult to summon, so I will not criticise the Government for remaining hopeful.

But clarity and contingency planning have also been important features of the process, so people know where they are in that process and what will follow if there is no progress. On those questions, I fear that many in Northern Ireland will be little the wiser after the Secretary of State’s statement this afternoon, because she told us, in a crucial passage, that “it became possible” in the recent talks “to identify a basis for a possible agreement” to form an Executive, including “on the difficult issues of language and culture”. That is a very optimistic statement, and it is a view that has been echoed by the Irish Government and Sinn Féin, but it is hotly disputed by the DUP, whose leader told us that there was no prospect of these discussions leading to a deal.

Ambiguity has also played a very important part on occasion in the Northern Ireland process, but both accounts cannot be accurate, and I hope the Secretary of State will accept that she has a duty to provide clarity to the people of Northern Ireland, not just because they deserve to know what is going on in their peace process, but because some, including some in this House, are using this period of confusion to advance their own agendas: to undermine the Good Friday agreement, which some see as an obstacle to Brexit, or to damage the concept of power sharing, which some have never supported. That is a reckless and dangerous game to play, because we in this place must never forget that the Belfast agreement ended a conflict that led to 3,500 lives being lost. Nor should we forget—especially those who are so quick to assert that the Brexit referendum is to be respected—that the Belfast agreement itself was copper-fastened with its own referendums, north and south, and they too must be respected and protected.

So I welcome the Secretary of State’s confirmation that the Government’s support for the agreement remains steadfast, and I ask her to confirm that she sees the Good Friday agreement as the only viable long-term option for the peaceful governance of Northern Ireland, and that the Government believe that its unique form of power sharing is indispensable to the agreement.

Coming back to last week and the events in Belfast, a simple way for the Government to clear up this confusion is to publish precisely where there was agreement and where the gaps remain—not in order to apportion blame, but to provide greater reassurance that progress has been made over the 13 months. So will the Secretary of State commit to providing further detail and to publishing some of those details?

One area where the Secretary of State has offered some further clarity today is on the possibility of a fresh election in Northern Ireland, and she should know that that would be met with glacial enthusiasm. Why does the Secretary of State think there is potentially an advantage in another election, the fifth in three years, in Northern Ireland? What would it achieve? Although she does have a statutory duty to call one at some point, that has been true since 27 March last year, and she and her predecessor have resisted the temptation to date.

The Secretary of State has also said that she is considering how best to give some certainty about the budget in Northern Ireland. We understand and accept that, and urge only that she consults properly with the parties, so that we can ensure maximum acceptance of, and agreements on, those budget allocations as part of the contingency planning. I hope she can commit to that too today.

Finally, may I ask the Secretary of State to consider what she will do to take forward some of the pressing issues facing Northern Ireland if her optimism is misplaced and a deal cannot be struck? It is not just on the issue of MLAs’ pay that people in Northern Ireland want to see action. Vital questions on the treatment of victims, both of the troubles and of historical institutional abuse, need to be resolved not just with consultation, but with legislation. These people have been waiting for far too long, so will she commit to looking at that in the absence of a deal?

Will the Secretary of State also commit to taking forward issues of human rights and social justice that are enjoyed naturally in other parts of the UK but denied to our citizens in Northern Ireland? In particular, can she confirm that one area of discussion between the parties was on the issue of equal marriage, and that agreement was reached to take matters forward through a private Member’s Bill in Stormont? In the absence of a Stormont Bill, would she consider legislating similarly to extend equal marriage rights to Northern Ireland? We believe that she should, and we will support her if she does so. To be clear, a Labour Government would legislate on that if Stormont could not do so.

Political problems are nothing new in Northern Ireland, but the current impasse has left the Northern Irish people without an accountable Government for almost 400 days. This is a profound crisis, and the Government have a profound duty to try to resolve it, and to preserve the Good Friday agreement and the principle of power sharing. We will continue to support the Government in trying to resolve the crisis, and we will support them on legislation wherever it is necessary, but we will hold them to account to preserve the Good Friday agreement in its spirit and its letter.

[Karen Bradley]

I thank the hon. Gentleman for his comments, and for the tone of them. It is important that we in this House show unity and a unified front when it comes to resolving these issues and re-establishing devolved government in Northern Ireland. If both sides of the House work together with that purpose in mind, we will have all the more reason to hope that that can be achieved. He asked about a number of matters, and I will try to address as many of them as I can.

On the topic of legacy, to which I made reference in my statement, we have been working with the parties and the Victims’ Commissioner on a consultation programme. As I have said, I would very much prefer to do that in the context of devolved government in Stormont, but we clearly have a responsibility to the victims of the troubles, and it is absolutely right that we should deal with that. We will take whatever steps are necessary to ensure that the matter of legacy is dealt with, but as I say, we would much rather that it was done in the context of having devolved government in Stormont. We are committed to the institutions as set out in the Stormont House agreement, and we will be consulting on that.

We are also committed to the Belfast agreement, as I said in my statement, and to all successor agreements. The position in the Conservative party manifesto at the last election, and the position of this Government, is that the Belfast agreement is the right approach. It has led to great success for Northern Ireland, and more success can come. The hon. Gentleman mentioned Brexit. The joint report that was signed before Christmas makes specific reference to a commitment to the Belfast agreement and to respecting the institutions in the agreement.

The hon. Gentleman asked about the talks, and about what the British Government would publish. I want to make it clear that the talks that we have facilitated—we did not impose them—have been between the parties, particularly the two main parties. Therefore, any documentation or anything that has been written down is a matter for the parties; it is not a matter for the British Government. He also asked about an election. I have a statutory duty as Secretary of State to call an election, but I want to ensure that we have exhausted every avenue and every viable option to re-establish devolved government at Stormont. That is what the Government want to see, and that is what we are working towards. We will do all we can to achieve that, and I thank him for his support in that regard.

[James Brokenshire (Old Bexley and Sidcup) (Con)]

It is good to be back, and I thank colleagues on both sides of the House for their kind, generous and supportive comments over the past few weeks. What is not so welcome, however, is the continuing lack of devolved government in Northern Ireland, which it desperately needs. I commend the Secretary of State for all her work and for her efforts in seeking to bring the parties together. I also commend the Irish Government for their work.

I commend what the Secretary of State said about the Government’s commitment the Belfast agreement. That is our cornerstone; it is the bedrock of what we do. I also commend what she said about the troubles and the legacy of the past, and about making progress on the consultation. I hope that she will agree, however, that we need to remain firmly focused on restoring devolved government. Rather than talking up direct rule, we should continue to focus on talking out the remaining issues that lie between the two parties, and I hope that she will agree that we need to retain that focus in all we do if we are to restore devolved government and give Northern Ireland the bright, positive future that I know its people want to see.

[Karen Bradley]

I thank my right hon. Friend for his comments and questions, and for his approach. He was an outstanding Secretary of State for Northern Ireland, and he is very much missed in Northern Ireland. I do not think I have been to a single event since being appointed Secretary of State where he has not been mentioned in the warmest and most generous terms. I am fully aware that his are big shoes for me to fill.

I agree with all that my right hon. Friend says about the importance of restoring devolved government for the people of Northern Ireland. The people of Northern Ireland elected the Members of the Legislative Assembly, and those MLAs need to be in Stormont. That fabulous, wonderful Parliament building is empty and bereft, and it needs to be filled with the people who were elected to fill it, taking decisions on behalf of their constituents for all the people in Northern Ireland.

[Patrick Grady (Glasgow North) (SNP)]

I join others in welcoming the former Secretary of State, the right hon. Member for Old Bexley and Sidcup (James Brokenshire), on his return to the Chamber.

I also thank the Secretary of State for advance sight of her statement, but we share the disappointment we are hearing that, although there has been some progress to report, there has not been enough. We welcome the continued public commitment of the UK and Irish Governments to the Good Friday agreement, noting, as she does, that we are approaching its 20th anniversary.

The Good Friday agreement and the institutions it established were endorsed by the people of Northern Ireland, and the preservation and restoration of those institutions should be the focus of all the parties and interlocutors involved in these vital talks. We also note the Irish Government’s firm position that the agreement, and its subsequent agreements, must be implemented in full, and in that context the Irish Government have reiterated that they do not want to see the introduction of direct rule in Northern Ireland.

I ask the Secretary of State to clarify her timetable for the next steps she has outlined. In particular, given the absence of talks, under what circumstances would she consider calling fresh elections to the Assembly? What consideration has she given to convening the British-Irish Intergovernmental Conference, which was established under strand 3 of the Good Friday agreement?

[Karen Bradley]

I thank the hon. Gentleman for his comments and for his statement of commitment to the Belfast agreement. On my priorities now, in the past few weeks I have focused on the talks process. I still continue to work and communicate with all parties to see what we can do to re-establish discussion and to help the parties get to an accommodation that will enable a devolved Executive to be established. My priority in the immediate term is clearly the budget, as we need to make sure that the dedicated civil servants and public servants in Northern Ireland have the certainty they need to continue delivering public services.

[Several hon. Members rose—]

[Theresa Villiers (Chipping Barnet) (Con)]

None of us should underestimate the difficulty of reaching accommodation on issues of culture and identity that have divided people for centuries. Will the Secretary of State urge the parties to come together to try to find a balanced package that reflects the cultural sensitivities of all sides of the community in modern Northern Ireland?

[Karen Bradley]

I thank my right hon. Friend for her question and hers are another pair of shoes that I endeavour to fill. She was an excellent Secretary of State for Northern Ireland. She went through a number of these processes, so she knows only too well how these things operate. I agree wholeheartedly with what she says.

[Nigel Dodds (Belfast North) (DUP)]

I join others in warmly welcoming the right hon. Member for Old Bexley and Sidcup (James Brokenshire) back to the Chamber. I wish him well.

As the Secretary of State knows, we of course stand ready to form an Executive tomorrow, on the basis of no preconditions and on the basis of the programme for Government that was agreed with Sinn Féin back in December, before Sinn Féin walked out and set preconditions—political demands—that they want to see implemented before they get back into the Executive.

The fact that there is no Executive is not the fault of the Democratic Unionist party. Indeed, it is not the fault of the smaller parties, either—I make that very clear. But in the absence of devolved government, now is the time for the Secretary of State to do right by all the people of Northern Ireland.

I have just come from a meeting of a group of charities and others who want somebody to lobby—a Minister to argue with—about mental health funding in Northern Ireland. There have been no Ministers for 13 months. That cannot continue. Secretary of State, it is time to set a budget. Let the efforts for devolution continue—yes, we want to see devolution—but it is a dereliction of duty to continue without a budget and without ministerial decisions. It is time to get on with it.

--- Later in debate ---

[Karen Bradley]

I thank the right hon. Gentleman for his assertion of the DUP’s commitment to devolved government, which is warmly welcomed by everyone. He and I have had and will continue to have discussions about the budget. The shadow Secretary of State asked whether I would be consulting the parties about the budget. I have committed to do that and will ensure that I work with the right hon. Gentleman and his party’s Members on that. He fervently summed up the reasons why devolved government is so important.

[Dr Andrew Murrison (South West Wiltshire) (Con)]

I congratulate my right hon. Friend on her statement and warmly welcome seeing my right hon. Friend the Member for Old Bexley and Sidcup (James Brokenshire) back in his place and in fine form.

The head of the Northern Ireland civil service said to the Northern Ireland Affairs Committee on 24 January:

“It will be incredibly difficult for us if we do not have budget certainty by 8 February.”

It is now 20 February. What will the Secretary of State now do to set a budget and therefore the political direction that Northern Ireland so needs?

[Karen Bradley]

I thank the Chair of the Northern Ireland Affairs Committee. As I said in my statement, I am now working to ensure that we get certainty for civil servants in Northern Ireland—those dedicated public servants—and I will return to the House when I have further information.

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

The Secretary of State was absolutely right to say that she was not willing to conduct a running commentary on the talks, but now that they have collapsed once again, should she not publish the basis on which the talks failed yet again? The people of Northern Ireland have a right to know the areas of difference and what still needs to be resolved.

[Karen Bradley]

As I explained in my response to the shadow Secretary of State, I was not present at the discussions held between the two parties. I facilitated them, but I was not present during them. It would therefore be inappropriate for me to speculate on exactly where the parties reached in discussing their concerns. It is a matter of public record, however, that I have said that the concerns related to the very difficult issues of language and culture and the sustainability of the Executive.

[Bob Stewart (Beckenham) (Con)]

Would there be any role for the Northern Ireland Legislative Assembly if direct rule, which nobody in this House wants, were to be instituted?

[Karen Bradley]

Some Opposition Members were Ministers during the previous period of direct rule—the right hon. Member for Delyn (David Hanson) will be asking a question shortly—and it was clear then that there was no role for Members of the Assembly at that point.

[Sammy Wilson (East Antrim) (DUP)]

It is clear from the talks and their failure that the structures of the Belfast agreement have given a power of veto and blackmail to Sinn Féin. Given that there will be no giving in to that blackmail, will the Secretary of State recognise that, in the absence of the ability to set up an Executive, the only way forward for proper governance in Northern Ireland is for her to start taking some of the decisions that are important for the day-to-day running of Northern Ireland?

[Karen Bradley]

As I said in my statement, I want to see devolved government in Northern Ireland, I want the politicians elected by people in Northern Ireland to be able to take their places and represent them in the Assembly, and I want an Executive in place. That is what I am focused on trying to deliver as best we can, as I think Members on both sides of the House have stated.

[Nigel Mills (Amber Valley) (Con)]

Will the Secretary of State set out what role, if any, the smaller parties played in the talks last week?

[Karen Bradley]

All five parties were involved in the talks, including some roundtable talks. However, the clear point is that, for an Executive to be formed, the two large parties need to reach an accommodation. That is what we were working towards, and what I would like to happen in the near future.

[David Hanson (Delyn) (Lab)]

In the welcome absence of direct rule, of which I had personal experience as a Minister, will the Secretary of State tell the House how she will bring forward the budget, what form the approval of that budget will take and whether, as the hon. Member for Beckenham (Bob Stewart) asked, Assembly Members will make any contribution to the discussions of the proposals in it?

[Karen Bradley]

I know that the right hon. Gentleman served as a Minister during the last period of direct rule. I have been led to believe that there was a small incident involving a football match—Wales versus Northern Ireland—when he possibly found it difficult to know which side to support. I have said that I will come back to the House on the budget.

[Kevin Foster (Torbay) (Con)]

I welcome the Secretary of State’s statement. I know that for her, as for me, the priority will be to ensure that the peace process keeps on track. Will she therefore outline in some detail what exactly direct rule would mean for the people of Northern Ireland and for this House?

[Karen Bradley]

My focus is on getting devolved government back up and running because people want to know that their elected politicians—the people they have elected locally—will make the decisions for them. Those of us who believe in devolution, be it locally in our constituencies or in the devolved Administrations, know that, when local people make decisions, they are more representative of what voters want. That is why it is so important to get devolved government back up and running.

[Vernon Coaker (Gedling) (Lab)]

I welcome the Secretary of State’s continuing commitment to the Good Friday agreement, but does she agree that being more open and transparent about what happened in the talks—notwithstanding the fact that she says that she cannot do that because they were conducted by the Democratic Unionist party and Sinn Féin—and explaining to the public the problems and where the parties failed to agree might mean that they were in a position to support more properly the leaders of their respective communities who are trying to reach a deal?

[Karen Bradley]

As I have said, it would not be appropriate for me to speculate on what happened behind closed doors at a meeting between the two parties. They are now working to see what they can do to come back to the table, and that is what I am encouraging.

[Edward Argar (Charnwood) (Con)]

I join in the tributes to my right hon. Friend for her determination and work on this issue.

Northern Ireland has enjoyed significant economic success in recent years, largely down to the dynamism of the people of Northern Ireland, but also to the conditions that effective, devolved, power-sharing government created. Does she share my view that certainty about a budget and the restoration of a devolved power-sharing Government are the most effective ways in which to ensure that that economic success continues?

[Karen Bradley]

I agree with my hon. Friend. I have said that I will come to the House about the budget. Last Friday, I met business representatives in Belfast and they were unanimous that they needed their politicians to form an Executive so that they could encourage investment, create jobs and wealth and build on the fantastic success story that is Northern Ireland.

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

My party remains committed to total restoration of an Executive on a fair and equitable basis, and I commend the Secretary of State for what she has said. As was mentioned earlier, the head of the civil service said that it would be incredibly difficult for us if we did not have budget certainty by 8 February—we are now two weeks beyond that. Does she therefore agree that the important matters that divide us are not life and death matters that require a budget to resolve them? She has the power to set one—when will she do it?

[Karen Bradley]

As I said, I need to consult the parties about the budget and I will return to the House at the earliest opportunity with confirmation of my decision on that.

[Rebecca Pow (Taunton Deane) (Con)]

I welcome the Secretary of State’s continuing optimism and urge her to press on, not least because, with Brexit on the horizon, Northern Ireland needs one voice, provided by a functioning Executive, to make it the best Brexit deal not just for Northern Ireland but for the whole of the UK. Does she agree that, on this issue, time is of the essence?

[Karen Bradley]

I do agree with my hon. Friend. We need to make sure Northern Ireland’s voice is heard properly through the proper processes in the Brexit process, and that requires a devolved Government.

[Conor McGinn (St Helens North) (Lab)]

The British and Irish Governments are the guardians of the Good Friday agreement, but its owners are the people of Ireland, north and south, who overwhelmingly endorsed it in referendums. Does the Secretary of State agree that it cannot be usurped by this House, by any party or by any individual in it, and that she will work for its full implementation, alongside the Irish Government?

[Karen Bradley]

I do agree.

[Mr Philip Hollobone (Kettering) (Con)]

By how much is my right hon. Friend going to cut their pay?

[Karen Bradley]

A quick answer deserves another quick question, does it not, Mr Speaker? Mr Trevor Reaney has made recommendations on the pay of Members of the Legislative Assembly, and I am considering those at the moment.

[Kate Hoey (Vauxhall) (Lab)]

The people of Northern Ireland will be disappointed in the Secretary of State’s statement. Of course they would like the Executive back, but what they want more than anything is a budget, and agreement on reform of the health service and education, which were all agreed before Sinn Féin walked out. Why is she still dilly-dallying, and waiting and waiting? What does she actually think is going to be achieved in the next month?

[Karen Bradley]

I am exploring every possible window of opportunity to get devolved government back up and running, while looking at those important decisions that need to be taken. I will revert to the House on those matters.

[Lady Hermon (North Down) (Ind)]

I warmly commend the Secretary of State for her calm and positive tone in her statement today and her response to questions. I am very pleased that the British Government have not been bounced into moving to direct rule. The people of Northern Ireland want their Assembly up and running—it is their Assembly—and they were extremely disappointed and angry last week when the talks collapsed. I am not pointing the finger of blame, because that is not going to help anybody, but the people of Northern Ireland will also be extremely angry that MLAs are receiving their full salary. What possible justification can there be for paying them a full salary 13 months after collapsing the Assembly?

[Karen Bradley]

I thank the hon. Lady for her comments. My predecessor did ask Trevor Reaney to look at this matter. I will be considering the recommendations and will come back to the House shortly.

[Mr Chris Leslie (Nottingham East) (Lab/Co-op)]

Does the Secretary of State share my anxieties at the noises—the drum beat—coming from some of the hard Brexit quarters in the debate about how the Good Friday agreement has “failed” and “outlived its use”? Will she take this opportunity to reassert the Government’s view that nothing—no Brexit ideology and no attempt to justify instituting a new border—should jeopardise this carefully brokered peace settlement and that the Government are fully, 100% behind the Good Friday agreement?

[Karen Bradley]

I can confirm that the Government are 100% behind the Belfast agreement and that it was specifically referenced in the joint report as being of great relevance and importance to everybody in Northern Ireland.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

The common structures of the EU provided the basis of a peace in Ireland via the Good Friday agreement. Is not the reality that the British Government have failed to recognise that in their Brexit positioning and that maintaining the agreement has been a secondary consideration?

[Karen Bradley]

I do not agree with that assessment.

[Joanna Cherry (Edinburgh South West) (SNP)]

As has been said, in the past 48 hours, a couple of Members of this House and a British MEP have attacked the Good Friday agreement as “failed” and “unsustainable”. Will the Secretary of State join the Tanaiste, Ireland’s Deputy Prime Minister, in condemning such language as “irresponsible”?

[Karen Bradley]

As I say, I can only set out the Government’s position, which is that we fully support the Belfast agreement.

[Mike Kane (Wythenshawe and Sale East) (Lab)]

A young generation in Ireland, north and south, and on the mainland have no recollection of violence because of the Good Friday agreement. Therefore, does the Secretary of State agree that those who are playing fast and loose with that agreement for their own terms over Brexit should not be doing so?

[Karen Bradley]

I agree that people do not remember what it was like; my children visited Northern Ireland recently and were astonished to see that there are still walls between communities. That was a shock to them because they had no idea about what the troubles were like and what it was like for people living there. The people of Northern Ireland have come so far in 20 years, and it is vital that we restore devolved government and maintain the Belfast agreement.

[Paul Girvan (South Antrim) (DUP)]

I thank the Secretary of State for her statement. In the light of the failure of the talks and what has ultimately happened, the vacuum has been filled by those who wish to bring about more Dublin interference in Northern Ireland. Will the Secretary of State assure us that Dublin will have no say in the running and governance of Northern Ireland?

[Karen Bradley]

We have been clear that the three-stranded approach has applied in everything we have been doing. Strand 1 issues clearly do not involve the Irish Government. The hon. Gentleman will know that the best way to ensure the protection of the Union and that the people of Northern Ireland have their say is the restoration of devolved government in Stormont.

[Ged Killen (Rutherglen and Hamilton West) (Lab/Co-op)]

I urge the Secretary of State to get off the fence in respect of same-sex marriage in Northern Ireland. We simply would not tolerate such discrimination against any other group of UK citizens. It is not acceptable that the Government continue to be complicit in discrimination against LGBT people in Northern Ireland. Will the Secretary of State support efforts in this place to bring forward change?

[Karen Bradley]

This is a devolved matter. I was proud to vote for same-sex marriage for my constituents in this House when we had that vote, but I did not vote to impose same-sex marriage in Scotland. It is not the job of this Government to introduce legislation; it is for the people of Northern Ireland and their elected politicians to make the decision.

[Christine Jardine (Edinburgh West) (LD)]

Given the Secretary of State’s stated determination to reinstate devolved government in Northern Ireland, does she agree that perhaps the time has come for the appointment of an external mediator to chair the power-sharing talks?

[Karen Bradley]

I have been clear that I rule nothing out. Everything is under review and I will look at all viable options to ensure that we get devolved government back up and running.

[Gavin Robinson (Belfast East) (DUP)]

In situations such as this, we will always get verbal excess or an aspirational wheeze from some of the participants. Will the Secretary of State indicate clearly that nowhere in the Good Friday agreement, the St Andrews agreement, the legislation that underpins them or the constitution of this country is there provision for joint authority?

[Karen Bradley]

I fully respect the Belfast agreement and the successor agreements. We adhere to the three-stranded approach very strictly.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State for her statement. Will she outline the timeline for the imposition of direct rule as it is legislated for in this place, to ensure that the people of Northern Ireland do not continue to be led by the nose by Sinn Féin, a party that does not have the interests of Northern Ireland at heart but seeks only the destruction of the state of Northern Ireland in an attempt to secure an unwanted and unworkable Ireland that is never, never, never going to happen?

[Karen Bradley]

My priority, focus and energies are on the restoration of devolved government in line with the Belfast agreement. That is what I will be focusing on and that is what I am determined to achieve, alongside addressing the urgent issues, including the budget, that need to be dealt with in the very near future.