Northern Ireland (Regional Rates and Energy) (No. 2) Bill

Karen Bradley Excerpts

2nd reading: House of Commons
Wednesday 6th March 2019 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 rise to ask the House to give a Second Reading to a piece of proposed legislation that delivers on this Government’s commitment to ensure good governance and stable public finances in Northern Ireland. The Bill seeks to achieve those outcomes by bringing forward two essential measures. First, it will enable the collection of regional rates in Northern Ireland. Secondly, it will ensure that fair and appropriate tariffs and cost-capping measures are in place for the renewable heat incentive scheme in Northern Ireland.

As we discussed yesterday, the Government are committed to devolution. I am working hard to restore devolved government in Northern Ireland at the earliest opportunity. I firmly believe that this is the best long-term plan for the people of Northern Ireland and I profoundly believe it is in the best long-term interests of the Union. Important local decisions should be taken by locally elected politicians in Northern Ireland. I share the frustration felt by some Members of Parliament and the public that taking forward important proposed legislation in this manner in this House is not the ideal situation. However, in the absence of devolved government I have made it clear that I will continue to take the urgent and necessary decisions to ensure good governance and to protect public services.

[Gavin Robinson (Belfast East) (DUP)]

The Secretary of State will recall that during the passage of the Northern Ireland (Executive Formation and Exercise of Functions) Act 2018, we raised an urgent issue that crystallises at the end of this month: the forthcoming resources available to our housing associations in Northern Ireland. Because of an Office for National Statistics definitional issue, they would not have been able to draw down on financial transactions capital tax. Will she confirm today that Her Majesty’s Treasury has agreed to extend the derogation on that definition and that legislation will be brought forward in this Parliament to resolve this issue satisfactorily, so that our housing associations and co-ownership and other schemes have the funding available that will not impact on our block grant, but will allow people to have a sustainable future home in the Province?

[Karen Bradley]

I thank the hon. Gentleman for raising that important issue. It is clear that the derogation needs to and will continue, but that is not a long-term, sustainable solution. As he will know, the Northern Ireland civil service is putting together legislation and we await copies of that so that action can be taken.

[Gavin Robinson]

I am very grateful for that response. I understand that the legislation is there and is ready to be brought forward. Will the Secretary of State confirm that subject to parliamentary business, it will be introduced as soon as possible, and before the summer?

[Karen Bradley]

The hon. Gentleman may have more information than me. All I can say is that we know the Northern Ireland civil service is looking at that and we will act appropriately at the appropriate time.

The measures in the Bill are limited yet necessary interventions in Northern Ireland. They provide the certainty and support that Northern Ireland Departments and, indeed, the wider public need and deserve for the year ahead. I will now give more detail on the measures. Clause 1 addresses the collection of the regional rate. The UK Government have set the Northern Ireland regional rate in the absence of an Executive for the past two years. The level of rate to be applied this year was set out in my budget statement to Parliament last week. As part of the wider budget package of support to Northern Ireland for the 2019-20 financial year, the UK Government have set a 3% plus inflation increase on the domestic rate and an inflation-only increase on the non-domestic rate.

[Vernon Coaker (Gedling) (Lab)]

The Secretary of State outlined the percentage rise in the regional rate. I will say something about that in my speech if I am called later, Madam Deputy Speaker, but will the Secretary of State say something to the House about how the 3% was arrived at?

[Karen Bradley]

Throughout the whole budgetary process, we have ensured that we have liaised with the main parties in Northern Ireland and politicians to make sure that we reflect both the priorities of the programme for government that was in place before the Executive collapsed and the priorities of the politicians of Northern Ireland. Clearly, an increase in the regional rate was needed to meet the budget gap. It is quite right that, as well as the Treasury providing additional money to bridge the gap in the budget, the people of Northern Ireland should make a contribution towards the public services that they receive, and 3% was an appropriate number.

[Maria Caulfield (Lewes) (Con)]

The retailers organisation, Retail NI, has expressed disappointment at the rates, and has argued that Northern Ireland businesses would be paying the highest business rates in the UK. Will the Secretary of State give some words of sympathy or encouragement to them?

[Karen Bradley]

I understand the concerns that have been raised; I have met Retail NI and others. Clearly, we are only increasing business rates in line with inflation, but a number of measures are available to businesses in my constituency that are not available to businesses in Northern Ireland. That is as a result of Northern Ireland not having an Executive to deliver those. This comes back to the point that we discussed at length yesterday: what we need is an Executive to deliver on the programmes, incentives and support that are available, as is right and appropriate for Northern Ireland. It may be that what is needed in Northern Ireland is not the same as the incentives in Great Britain.

[Chris Elmore (Ogmore) (Lab)]

I am grateful to the Secretary of State for giving way; she is being very generous with her time. On the domestic rate—the 3% plus inflation; so 4%, there or thereabouts—clearly some residents in Northern Ireland will be able to afford that based on their income, but lots of people living in Northern Ireland are on the minimum wage, in low-income families, so will she set out for the House what support she will put in place so that there is some sort of relief to meet the costs of that rise?

--- Later in debate ---

[Karen Bradley]

What we are doing today is setting the rate. We are not setting any of the reliefs or allowances or support that is already available. Nothing that is there is changing and we are not able to change anything with the Bill. We are just setting the rate, but the hon. Gentleman is right that there may be things that people in Northern Ireland would like to see. Again, if there were Ministers in Stormont, they could do the right thing for Northern Ireland. It would be wrong to transpose the situation for councils in England, Wales or Scotland to Northern Ireland because it needs specific measures, and only Ministers in Northern Ireland can appropriately and properly deliver those.

This approach to regional rates, and therefore the measures in the Bill, represent an important contribution to delivering a sustainable budget for 2019-20. The second element of the Bill concerns the administration of Northern Ireland’s renewable heat incentive scheme. I must make it clear that the UK Government have not taken the decisions on the revised scheme. This remains a devolved matter and the Government are taking forward this legislation at the request of the Department for the Economy. It is crucial that that happens because without this legislation, there will be no legislative basis to maintain the current cost-control measures.

[Lady Hermon (North Down) (Ind)]

I am grateful to the Secretary of State for allowing me to intervene. I have received a large number of emails mostly, if not exclusively, from individuals who are not constituents of mine but who feel extremely aggrieved by the proposals in this legislation. They entered into the RHI scheme in good faith and feel that they are now being unfairly penalised. I would like the Secretary of State to address that issue this afternoon. Will she assure those people who have raised concerns and who feel very strongly aggrieved by the Bill that there is fairness in the proposals, and that they will not find themselves making their way to the local court to challenge the legislation, because it is in breach of human rights, for example?

[Karen Bradley]

I will come on to the details of why the decisions have been taken, the advice that we have received from the Department for the Economy and the request that it put in. However, I assure the hon. Lady that the measures we are taking today are the only legal ways in which any subsidies can continue to be paid to anybody on the RHI scheme. Failure to do this will mean the closure of the scheme and no subsidies at all. We need to bear that in mind when looking at this matter. I well understand that people feel concerned when they have entered into an obligation in good faith and then the subsidies that they receive are reduced. I will come on to explain why that is the situation.

[Sir Jeffrey M. Donaldson (Lagan Valley) (DUP)]

The Secretary of State will be aware of our concern that there has been a lack of proper scrutiny of these proposals. While we await the report of the public inquiry in Northern Ireland, it may be that one of the issues on which it makes recommendations is how we scrutinise this kind of measure going forward. We would have hoped that Parliament could set an example for that, yet we are not getting that opportunity, so would she care to address that concern and the timing of this proposal, coming so close to the end of the financial year?

--- Later in debate ---

[Karen Bradley]

As I said, this situation has resulted from a decision by the European Commission on state aid rules, and failure to do this will mean no subsidies being paid to anybody. I fully accept the right hon. Gentleman’s point about scrutiny, but it comes back to the point we discussed at length yesterday: in the absence of an Executive, there is simply no way scrutiny can take place appropriately.

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

While we await the findings of the inquiry, would the Secretary of State agree that whoever’s fault the RHI debacle is—policy makers or politicians—it is certainly not the fault of the people who entered the scheme, and that, at a time when farmers in Northern Ireland are facing great uncertainty and huge challenges, this will be seen as hugely detrimental to them?

[Karen Bradley]

As I say, I have enormous sympathy for people in this situation. I have met the Ulster Farmers Union and my officials have met individual farmers to talk about it. I well understand the concerns but, faced with a choice between no subsidies at all and cost cutting at 12%, I think this is the right and only legal approach we can take.

[Ian Paisley (North Antrim) (DUP)]

I thank the Secretary of State for at least acknowledging how grossly unfair this is to many people, but she must recognise that the Bill the Northern Ireland Office has put before the House today does far more than she has indicated. Less than half a page of the Bill deals with the regional rate. The rest—five pages—deals with the RHI scheme, and her proposal for the scheme will bring all renewable activity to an end for a generation. No one will ever again apply for a renewable scheme or a Government-backed deal in Northern Ireland. That will be the effect of her proposal.

[Karen Bradley]

I thank the hon. Gentleman for his comments. I will come on to the detail of the renewable heat measures and the work undertaken.

The Department for the Economy in Northern Ireland undertook an extensive public consultation in the last year to ensure that revised measures could be introduced in time for new legislation to come into effect from 1 April 2019. The tariff levels set out in the Bill are based on an analysis of the additional costs and savings of operating a biomass boiler in Northern Ireland. The Department has also engaged with the European Commission in developing the long-term tariff. The Commission has indicated that it is not in a position to approve a tariff that delivers a rate of return higher than 12%. Recognising that a small number of participants with lower usage needs or higher capital costs could see returns below the intended 12%, the Bill makes provision for the introduction of voluntary buy-out arrangements.

I recognise that some scheme participants in Northern Ireland will be concerned about these new tariffs. Both the Department for the Economy and my own Department have heard their views in person and in writing in recent weeks, as I said earlier, and I empathise with those people and businesses across Northern Ireland.

[Ian Paisley]

I thank the Secretary of State for going into the detail. She mentions the 12% rate of return. Why can the rest of the UK set a rate of return on the same scheme fluctuating between 8% and 22%? Why are our officials being told that Europe will only accept 12% for Northern Ireland, but will accept a differential rate for the rest of the UK? Officials have a duty to tell the public why that is.

[Karen Bradley]

We cannot easily compare schemes: there are different set-up costs and fuel costs in different parts of the United Kingdom. Differences apply. The work done by the Department for the Economy with the Commission is thorough and has ensured that the recommendations it put to me and the tariffs we are legislating for today mean that the scheme remains legal. That is the important point. If we do not have a legal scheme, there will be no subsidies.

[Ian Paisley]

The Secretary of State says there are different set-up costs, but under state aid rules that is not allowed. State aid rules declare that the set-up costs are X for the provision of the boiler. In England, different set-up costs are being used, and our Department in Northern Ireland is changing those set-up costs according to its interpretation of what the law demands. Does that not ultimately reflect the need for more scrutiny? To rush the measure through the House is not right, fair or equitable.

[Karen Bradley]

There are differences in fuel costs and transport costs. There are differences between different parts of the UK. I am interested in making sure that the scheme in Northern Ireland remains legal so that people with boilers can continue to receive some subsidy. I know it is not at the levels they were receiving previously, but it is still some subsidy.

[Maria Caulfield]

I understand why there has to be a change, but for farmers who have borrowed £250,000 or £500,000 to install a boiler and went to the banks with a guarantee of 20 years of subsidy, a change from £13,000 to £2,000 a year per boiler is a real concern. Many will not be able to pay the money back and will go under.

[Karen Bradley]

That is why a buy-out scheme is available: so that boiler owners can choose individually. I cannot say exactly what the rate will be, because it will depend on, for instance, the subsidies that have been received to date. The calculations will be individual, but a buy-out will be available to boiler owners who do not believe that the subsidies now available will enable them to continue in business.

[Sammy Wilson (East Antrim) (DUP)]

rose—

[Gavin Robinson]

rose—

[Karen Bradley]

I do want to make some progress, but I recognise that many interests are involved. I will give way to the right hon. Member for East Antrim (Sammy Wilson) and to the hon. Member for Belfast East (Gavin Robinson), but then I will conclude my speech.

[Sammy Wilson]

Does the Secretary of State accept, first, that the terms of the buy-out scheme are not clear and, secondly, that a large number of people—probably those who are most affected by these changes—will not be able to avail themselves of it?

[Karen Bradley]

I will now give way to the hon. Member for Belfast East.

[Gavin Robinson]

The Secretary of State talked about a 12% rate of return. She knows that participants in the scheme will be listening very carefully to what is being said today. According to figures that were given yesterday, over the 20-year period of the scheme the rate of return will be 60%, but whether it is 12% or 60%, officials were indicating that the money had largely been paid. Will the Secretary of State confirm that, and does she agree with those figures?

[Karen Bradley]

As I have said, the figures will all be individual, and it is impossible for me to give the hon. Gentleman a generality from the Dispatch Box. However, he is right to say that the subsidies that have been paid to date will, on the whole, be higher than the subsidies that will be paid from now on. The point is that unless those steps were taken, the subsidies that were being paid would breach state aid rules, and the scheme would be illegal and would be closed. This is the maximum level at which subsidies can be paid if the scheme is to continue to be legal.

Representatives of the Department for the Economy will meet other interested parties, such as the banks and those in the agri-food supply chain, to discuss the impacts and seek support for affected participants. The Department has also agreed to provide additional advice and technical assistance for participants. I know that this is a very difficult matter, but I believe that the measures proposed by the Department for the Economy are fair, and strike the correct balance between the rights of participants and the wider public interest.

To conclude—

[Gavin Robinson]

rose—

[Karen Bradley]

I was about to conclude, but I will give way to the hon. Gentleman, because he is irresistible.

[Gavin Robinson]

I am very grateful to the Secretary of State. She says that I am irresistible; how could I disagree? She is very kind to give way for a final time.

I want to focus on the fact that the Secretary of State said there was a fixed rate of return of 12%. Participants can hear today that they will not receive that money in the forthcoming years under the terms of the Bill. Is it not the case that the Department for the Economy is saying that they have already received it?

[Karen Bradley]

As I have said, these are the measures that we need to take now to ensure that the scheme remains on a legal footing. These are the steps that need to be taken to ensure that any subsidies can continue to be paid from the scheme and allow it to remain within the state aid rules. However, I am sure we will debate this issue further at a later stage, and I do understand the hon. Gentleman’s points.

The Bill does two things, both of which are required for good governance and stable public finances in Northern Ireland. I hope that colleagues on both sides of the House agree that it is important for us to make progress now to protect the best interests of all people in Northern Ireland, and to that end I commend the Bill to the House.

Northern Ireland (Regional Rates and Energy) (No. 2) Bill

Karen Bradley Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Wednesday 6th March 2019 Commons Chamber

[The Chairman]

With this it will be convenient to discuss the following:

Clauses 3 to 5 stand part.

Amendment 1, in clause 6, page 5, line 26, at end add—

“(4) Section (Regulations) comes into force at the end of the period of 3 months beginning with the day on which this Act is passed.”

Clauses 6 and 7 stand part.

New clause 1—Regulations—

“(1) The Secretary of State may make regulations by statutory instrument amending any provision within sections 2 to 5 of this Act or within the Schedule to this Act.

(2) Regulations under this section may not be made unless a draft of the statutory instrument containing them has been laid before Parliament and approved by resolution of each House of Parliament.

(3) The Secretary of State may lay draft regulations under this section before Parliament only if the draft regulations take account of any relevant recommendations made by any select committee of the House of Commons.”

The purpose of this new clause is to ensure prior consultation, and full and proper scrutiny, of proposed changes to the renewable heat incentive scheme in order to ensure that current participants are not disadvantaged by changes to the scheme.

That the Schedule be the schedule to the Bill.

[Karen Bradley]

We have had significant debate on this matter on Second Reading and I do not wish to prolong proceedings any further at this stage. I look forward to hearing from right hon. and hon. Members.

[Dr Murrison]

I am grateful to you for calling me to speak in this stage of our proceedings, Sir Lindsay. The complexity of the Bill, apart from clause 1, has been demonstrated by the level of discussion that we have had. That really underscores the need for full and proper scrutiny of this Bill. Forcing this through all its stages in a day is a challenge, and I fear we have not explored sufficiently the complexity of this matter. It is a matter that bears on the lives of many people in Northern Ireland and we must get it right. I know the Secretary of State is as keen as I am to ensure that that happens.

I am grateful to the parliamentary draftsmen for their assistance in crafting my new clause, which is available in manuscript form. It turns what I thought would be a simple matter—that of dividing the largely uncontroversial part of the Bill from the more difficult bit on the RHI—into something that, in my mind, is really quite complicated, but that is the nature of this place and of parliamentary draftsmanship. We cannot consider these two parts separately and be sure the matter will be finalised in time for people to get their money on 1 April, so in consultation with parliamentary draftsmen, we have devised a new clause and an amendment to clause 6, which is the commencement clause.

I am grateful to the members of the Northern Ireland Affairs Committee who have co-signed the new clause and amendment. I have appended to the new clause what I hope is a helpful explanatory statement. It explains that the new clause is essentially a patch-up job that I hope will help to facilitate consultation and fuller and better scrutiny of proposed changes to the renewable heat incentive scheme to ensure that current participants are not disadvantaged by changes to the scheme. I appreciate that this is imperfect—I would have preferred for it to be dealt with separately and for the Bill to have been divided into two parts to allow for a proper debate on the RHI clauses and schedule—but I accept that we are faced with the choice of supporting the Bill or not and that if we do not support it many people will be financially disadvantaged, which is not acceptable. I hope that the new clause provides a mechanism for scrutinising this matter, albeit imperfectly, and for making recommendations that the Secretary of State might implement to ensure that as few people as possible are disadvantaged.

I am not in the business of job creation, and I gently point out that my Select Committee is the most productive in the House of Commons, according to figures I have seen—we are pretty busy, particularly at the moment—but it might be thought a proper Select Committee to undertake this work. If so, I will discuss it with my Committee, but I make no prescription. I am quite clear that this complicated element of our business needs proper detailed scrutiny and that we need to see and examine the data produced.

Several right hon. and hon. Members have been a little critical of the Department for the Economy. It is after all implicated in this situation, as the informatics it produced and the advice it gave are partly to blame for where we are, and that means we are doubly obliged to examine closely any material it has produced. That is fair and proper scrutiny. I gently suggest that whichever Select Committee undertakes this work focus heavily on that information so that we can be clear what is being recommended to the Secretary of State and are better able to make recommendations to minimise the hard cases that we are all concerned about in the course of this legislation. I hope she will consider the amendments carefully, and I look forward to hearing what she has to say.

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[Ian Paisley]

It is always an honour to serve under your chairmanship, Sir Lindsay.

I support the new clause. It has the overwhelming support of the parties here and of the Select Committee, which has been rightly identified as the Committee that should try to organise the scrutiny. I approve of the requirement in the new clause that the Secretary of State should bear in mind

“any relevant recommendations made by any select committee of the House”.

A number of points were made on Second Reading but, in particular, Members asked where the evidence came from and on what we were basing this, and my hon. Friend the Member for North Down (Lady Hermon) asked whether we could see the material. Yesterday was the first time that I, and many of my colleagues, were able to see the material on which tonight’s discussion is based. I have it in my hand. There is not a lot of it: it contains 300 words and three graphs. On the basis of a 300-word document with three graphs, we are being asked to agree a multi-million-pound subsidy cut in Northern Ireland. That is not right.

This requires scrutiny. Those 300 words may have convinced some people, and the Minister made a very good fist of making the case, but they are not a compelling argument. We need to be able to see the evidence that has convinced the Department that it is doing right and the rest of the United Kingdom is doing wrong, and that, if the Irish Republic comes on stream, it too will be doing wrong. We need to see the evidence for those claims.

I asked a few questions that need to be answered by the Secretary of State or her senior officials. That can happen only in a Committee, because they have not been answered on Second Reading, and I do not know if they will be answered in Committee. I welcome the new clause that has been tabled by colleagues; I hope that it attracts support and that the Secretary of State can demonstrate to us, if she does not want us to accept it, that she will take cognisance of what a Committee will say and of scrutiny that will actually take place.

[Karen Bradley]

I recognise the concern of Members and the spirit of this amendment, which seeks to provide for additional time and scrutiny. As I have said, I empathise with the participants in the scheme. I have been very clear, during discussion both of yesterday’s legislative measures and today’s, that this situation and this process are far from ideal. What I and I think everybody in this Chamber wants to see is scrutiny of Northern Ireland policies by locally elected politicians. Nevertheless, I am committed to bringing forward measures on behalf of Northern Ireland where they are critical to good governance, as these two Bills are. I remind Members about the point I raised yesterday about the normal estimates process: by taking this legislation through as primary legislation in this House, rather than subordinate legislation, as it would have been in the Assembly, we are affording a higher degree of scrutiny and accountability to these measures.

My hon. Friend the Member for South West Wiltshire (Dr Murrison), the Chair of the Northern Ireland Affairs Committee, is right that full and proper scrutiny is what we need, and he is right to challenge us. He is also right to say that we must get this right, and I appreciate that his amendment would afford more time for scrutiny and offer a mechanism by which more scrutiny could be delivered.

The Northern Ireland RHI scheme has probably received more public scrutiny than any other. I have already mentioned the public inquiry into the scheme, which has interrogated myriad aspects of the scheme in detail, but additionally and specifically on these new tariffs, the Department for the Economy held an extensive public consultation from June to September 2018. That included making public the evidence base used by the independent experts who generated the tariffs. I believe that information is on the Department for the Economy website and we are looking to see if we can find it quickly and provide a link to it as soon as possible.

The Department held pre-consultation events for stakeholders, including all the local political parties and key representative groups, including the Ulster Farmers’ Union and the Renewable Heat Association Northern Ireland. Following the closure of the consultation, the Department set out its analysis and response in January 2019 and said that final proposals for the revised tariffs would be delivered in February this year. The Department and my officials have in recent weeks briefed parliamentarians and local parties on the new tariffs and the new legislative measures before us, including the new buy-out clause. My hon. Friend’s suggestion that there may be a role for further scrutiny in either his Committee or another Committee in the House is very welcome and I certainly would appreciate that.

With regard to the timing of the legislation today, it is important to recognise the comprehensive and technical nature of the work involved. As I have mentioned, the Department for the Economy engaged independent experts to carry out a painstakingly detailed review of the scheme, went through a full public consultation exercise and more recently an extensive discussion with the European Commission on state aid. These discussions only reached a conclusion at the end of January, meaning the Department for the Economy could not finalise its position any earlier. The current legislation is sunsetted and a failure to enact the clauses before us will mean more than 1,800 participants will not be able to be paid by 1 April.

[Ian Paisley]

On that point—I think this is critical and is probably subject to the judicial review at the present time—is it the case that payments stop? Is that the opinion of the barristers advising the Department? Or is it the case that this reverts to the original payments scheme? There is contrary advice on this and the Secretary of State must be clear with us which advice she is taking and why.

[Karen Bradley]

The advice I have received is that the payments will stop, because there will be no legal basis on which to make any payments. The payments that are currently being made have been found to breach state aid rules, so there is no legal basis on which to continue to make payments. The payments with the cost-capping involved expire on 31 March. The Department cannot go back to the original payments, because they would be illegal payments, and we will not have any other mechanism by which legal payments can be made after 31 March. I recognise that this is far from ideal, but the facts of the situation have meant that an expedited process is required.

[Ian Paisley]

The Secretary of State says that we cannot go back to the original payments, but I do not think that anyone is asking for that. However, the payments were stepped down, and I understand that she could continue with those stepped-down payments.

[Karen Bradley]

I cannot continue with those, because the advice that I have is that to continue with them would be illegal. Under the ministerial code, I cannot, as a Minister of the Crown, legislate for something that I am advised is illegal. So I am left in a very difficult situation. I understand how people feel about this. I empathise with people and I understand the implications for them of a reduction, but as Secretary of State, legislating for something that none of us wants to be legislating for in this place, I am faced with the choice of legislating for something that is legal, to allow some subsidies to continue, or not legislating, which would result in no subsidies happening after 31 March. The legal basis on which the reduced subsidies, as set out by the Executive, are paid expires on 31 March.

[Dr Murrison]

I appreciate the Secretary of State’s dilemma. She is having to act on the basis of advice that she is getting from the Department for the Economy, a Department whose advice has been shown to be flawed in the past. Does she understand that we need to examine this closely? She has been told that, legally, she has to do this, and we in this place have to accept that, but we also have to scrutinise the legislation. I hope that she can give me sufficient reassurance that she will note our examination of this matter and our recommendations on it, and that she will not take at face value the advice that she has been given from a Department that has erred in the past. I very much hope that she will be able to tailor her remarks accordingly, and I am all agog as to what commitment she can give to providing the scrutiny that I have described in my amendment.

[Karen Bradley]

I thank my hon. Friend for his questions, and I will come on specifically to those points in a moment.

I want to come back to the question of whether there is an option to delay. I agree with the principle and intention behind the amendment, but it is not the solution to the wider problem. As I have said, the tariffs set out in the legislation are the only tariffs available that will bring the returns on the scheme into line with the 12% approved by state aid. The tariffs strike a fair balance between the interests of scheme participants and the wider public interest, in ensuring that the Northern Ireland budget and public services are protected and that taxpayers’ money is spent to achieve value for money. The only lawful alternative would be the closure of the scheme.

[Paul Girvan]

In relation to the figures that are being presented, I have done a very simple back-of-the-envelope calculation—perhaps not a very wise thing to do—of the payments that would have been received in the early stages at the maximum permissible amount. If we calculate that in, then take the reduction over the next couple of years that has been calculated in, then multiply by the factor that has been put forward, it comes out at 3.1 times less than what the rest of GB is getting on the average tariff.

[Karen Bradley]

I hope that the scrutiny that the Chair of the Northern Ireland Affairs Committee has offered will help to address a number of those issues. I know that there is concern about the differences between the scheme in GB and the scheme in Northern Ireland. I am not using a visual aid here, but I can assure Members that we have a copy of the document that is on the Department for the Economy website. It is available for download, and we would be happy to send a link to all Members here today, to ensure that they have an opportunity to see the very detailed information, tables and calculations, which I am sure they will absorb and enjoy.

To resume, delay of the legislative measures, such as the amendment would achieve, would serve only to put at risk payments to all the participants in the scheme. For there to be a lawful basis for the RHI scheme come 1 April, the legislative process and Royal Assent need to be completed by 31 March. The current tariffs are designed to pay the maximum 12% rate of return to a typical participant, so there is no lawful way to introduce higher tariffs to the scheme. A delay would not change that fundamental issue.

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[Karen Bradley]

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

I thank everyone who has participated in this debate and the one yesterday. We have had a good discussion. We are all dissatisfied with the level of scrutiny afforded to these measures in the absence of an Executive, but I think it is fair to say that the debates in this Chamber yesterday and today have meant that there has been scrutiny and that we have aired a number of the issues that right hon. and hon. Members wished to air. I thank all who have participated and look forward to the work that the Select Committee has set out it will do.

I thank my Minister of State, the Minister in the other place, the Whips, the Opposition, the Scottish National party, the Members from the Democratic Unionist party and the hon. Member for North Down (Lady Hermon) for their participation over the past two days. Finally, I thank the Bill officials because, if it were not for the people who spend hours and hours coming up with the very technical points and working incredibly hard through that, we would not be able to deliver in this place in the way that we do.