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

Lord Cormack Excerpts

2nd reading (Hansard): House of Lords
Tuesday 12th March 2019 Lords Chamber

[Lord Cormack (Con)]

My Lords, unlike most of the speakers in this debate, I do not come from Northern Ireland. It is a part of our United Kingdom that I got to know and love when I was chairing the Northern Ireland Affairs Committee in the other place. The people are marvellous; the countryside is beautiful and I fell in love with it.

I shall always have two particular memories, because 2005-10 was a very interesting, formative time. One was in 2008, when Ian Paisley—the late Lord Bannside—retired. I was at Hillsborough. Perhaps some of your Lordships were as well. It was a remarkable occasion. The Prime Minister, Gordon Brown, was there to pay tribute. The Taoiseach was there. The most moving and amazing part of that evening was the wonderful address, delivered to his friend and mentor, by Martin McGuinness. We have come a long way since then—and not in the right direction.

There is another event I shall always remember and which is printed on my mind. There was a particularly brutal murder of a young man called Paul Quinn. His parents came to see me and some members of the committee and we were invited to Crossmaglen. I was informed that I was the first British politician from this part of the United Kingdom to address a meeting in Crossmaglen since 1901. The warmth of the people, suffused on that occasion by very considerable anger, was palpable.

I feel very sad indeed that neither the Executive that was created nor the Assembly that met regularly exists for the moment. I do not go along with the desire for direct rule. I believe this would be a terribly unfortunate development. I do, however, associate myself with those who have talked about the way in which we are dealing with Northern Ireland legislation in this place and in another place. It is nothing less than an insult to the people of Northern Ireland for us to fast-track the two Bills that are before your Lordships’ House tonight. Frankly, there is no need for it. I am delighted and grateful that we have another day next week on the second of these Bills. I will endeavour to be present and to take part in the debate. I am sure that your Lordships who are here will all do likewise.

It is not good enough. Billions of pounds are effectively being nodded through. There is nothing approaching scrutiny or detailed examination. If we are to have another year like this—and I suspect that we are—this must not be allowed to happen again. There must be proper, adequate scrutiny, even if it has to take place not on the Floor of your Lordships’ House but in the Moses Room, in Grand Committee. We must engage. The people of Northern Ireland are as deserving as the people of Lincoln—where I now live—or of my former constituency of South Staffordshire. They are not getting the government they deserve. They are being short changed. Unless and until the Assembly and the Executive are restored, we have to shoulder—and willingly—the burden of government. This does not mean an early imposition of direct rule.

In his speech, the noble Lord, Lord Alderdice, took up a cry that we have made separately and jointly on many occasions. Why, oh why is the Assembly not meeting? He and I accept that it would not have legal, executive authority. Time and again, I have asked my noble friend why the Assembly cannot meet. I attach no blame whatever to him. My noble friend is an exemplary public servant. He conducts himself with great dignity and is exceptionally well-briefed. When I said it to him again last week, he was kind enough to say that he would try to give some sort of definitive answer this evening. I wait with real interest because it is very important indeed.

I want to touch on a couple of issues, one of which—this renewable heat incentive—has been touched on many times. I am not going to read anything into the record, because that has been done. I have received, as have many of your Lordships, a number of pleas—cris de coeurs—from people in Northern Ireland who believe that they have been badly let down and misled, encouraged to do things they would not otherwise have done and placed themselves in penury as a result. One of them was cited by a noble Lord a moment or two ago. We have all had those letters and I dare say that we will be referring to them again.

The noble Lord, Lord Hain, was unable to be here this evening because of a long-standing previous engagement, but he talked me beforehand because I was one of a group of former Secretaries of State and others who went to see the Secretary of State some weeks ago. I also had a private meeting with the victims’ commissioner, who was over here. We were particularly concerned about the plight of those who, through no fault of their own, had their lives shattered—effectively destroyed—as a result of injury during the Troubles. Most of them are in their 60s or 70s. Many, alas, have already died. We have been told that there is a desire to give them pensions, but as my grandmother used to say, fine words butter no parsnips. These are people who are often living in the most straitened circumstances: their bodies pulverised, their futures destroyed decades ago. They deserve help, and I very much hope that when next we have a Bill before us, it will be a very short one that we can indeed fast-track, and which will enable those people to be recognised.

I finish where I began. It is very wrong that this legislation should be fast-tracked in this way. There is no excuse for it, there is no need for it and the people of Northern Ireland deserve better.

--- Later in debate ---

[Lord Duncan of Springbank]

The noble Lord is absolutely correct. That is why I am trying to be very careful in putting this forward.

[Lord Cormack]

I am most grateful. I would like to follow up: I think we see this as one. I appreciate the suggestion that we might take part in some way. However, I would ask that the Secretary of State herself writes to every single elected Member, saying that there will be a meeting on a particular day and inviting them to come. It would be wrong to allow any single segment or group to veto that initiative. It has to be taken at the highest level, by the Prime Minister or Secretary of State.

[Lord Duncan of Springbank]

I accept the words of my venerable and noble friend. I am trying to find a way of moving this forward as best I can. I wonder whether there might be an opportunity for us to meet collectively in a different forum to discuss that very thing. I do not think I will be able to resolve it on my feet. I do not doubt that in a few moments or so I will be getting little notes from my assistants in the Box.

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

Lord Cormack Excerpts

Committee: 1st sitting (Hansard): House of Lords & Report stage (Hansard): House of Lords
Tuesday 19th March 2019 Lords Chamber

[Lord Cormack (Con)]

My Lords, I support what my noble friend Lord Empey said: this is a question of fairness, justice and equity. As my noble friend said in his powerful and persuasive speech, those of us who take an interest in the affairs of Northern Ireland have had many communications from people who, frankly, are at their wits’ end as to how they can survive financially. I have had letters from poultry farmers, hoteliers and others who, in good faith, with a written ministerial assurance, made an investment. It is not for us to say whether that was wise or not, but we have to recognise that these people were acting on government advice. I do not want to quote a lot of letters but I shall quote just one sentence from a poultry farmer: “Is it fair for the Government to renege on tariff payments that had been guaranteed?”

The system is incredibly complex—my noble friend Lord Empey made that plain— and I do not pretend that I understand all of it but, as a former chairman of the Northern Ireland Affairs Committee in the other place, I am delighted that my successor but two has decided to take this on. I hope his committee will be able to conduct a thorough, expeditious inquiry. I know not what it will say, but I know that this particular scheme, however well intentioned, was certainly not well designed. However pure the motives, the results have been catastrophic; they would have been even more so had something not been done. As my noble friend said in his speech, we would have been talking of a sum in excess of £1 billion for a part of our country which I love dearly but is not the most populated part.

I share my noble friend Lord Empey’s faith and confidence in our Minister. He is a man of totally good intent and I hope that he will be able to come up with a solution that will persuade my noble friend not to press his amendment. I hope there is another solution to that.

I come back to one simple point. We are dealing with citizens of the United Kingdom who have been—maybe inadvertently, although I am not entirely sure of that—misled, who have made financial decisions, who have in some cases, in good faith, borrowed and been lent very large sums of money, and who now find their very livelihoods on the brink of collapse.

We have lamented time and again in recent debates, particularly last Tuesday when we were critical of the fast-tracking of Northern Ireland legislation, the fact that for over two years neither the Assembly nor the Executive have met. In all parts of your Lordships’ House, this is something that we deeply deplore. It means that, temporarily at least—I very much hope it is temporarily—a great weight of responsibility rests on our shoulders for the people of a much loved and, over the years, much troubled part of our United Kingdom. I hope we will be able to do them justice.

I hope above all that my noble friend the Minister, who is both determined and sensitive—we know that in this House—will be able to satisfy the points raised so admirably by my noble friend Lord Empey. I have great pleasure in supporting him.

[Lord Rogan (UUP)]

My Lords, I find it interesting that I am addressing your Lordships this evening from these Benches.

[Lord Cormack]

The noble Lord is very welcome to stay.

[Lord Rogan]

I support the two amendments in my name and the name of my noble friend Lord Empey.

I have said this several times over the last two years and will continue to say it, but it is a matter of deep regret that we are debating this at all. Rather than in your Lordships’ House, it should be taking place in the Northern Ireland Assembly, with local representatives defending the Bill’s provisions rather than the Minister—much as we enjoy seeing a master at work.

Of course, the scandal surrounding the RHI scheme itself has much to do with why we are discussing the subject here rather than the MLAs debating it at Stormont. Noble Lords can argue about whether RHI was the principal reason Sinn Féin/IRA chose to collapse the Executive when Martin McGuinness resigned as Deputy First Minister. What is beyond dispute, however, is that the scheme has been a catastrophe. There must surely be consequences for those responsible for its many failings when Sir Patrick Coghlin and his excellent team produce their final report.

The RHI inquiry also exposed deep failings in the system of governance at Stormont, which must be addressed if the Assembly’s eventual resurrection—should that happen—is to be sustainable and lasting. One must live in hope if nothing else.

--- Later in debate ---

[Lord Duncan of Springbank]

Interestingly enough, this was always known; it was just never fully understood or applied. What the Government here have sought to understand is exactly what information the Northern Ireland Executive has been in receipt of. We have been very clear about pinning that down, because the 12% was always there; it was simply not used correctly, which allowed it to spiral massively, up to and in excess of 50%. We have had sight of correspondence from the European Commissioner that tells us very clearly that, were we to maintain the rate as it stands, we would be in breach of state aid rules. Civil servants in Northern Ireland—noble and diligent as they are—cannot move forward on the basis of an illegal rate. That is why we find ourselves where we are today.

I will touch on a couple of points made by the noble Lord, Lord Empey. He notes that this proposal really covers the medium-sized boilers. He is correct that it does not affect the larger boilers or the micro boilers. These matters were to be considered after we had settled this question, which covers the bulk of boilers in Northern Ireland. That said, the issue is a very simple one, and the noble Lord, Lord Cormack, put it very well: it is fairness, justice and equity. That is the issue we need to address tonight.

There is no question that the individuals who have emailed us, setting out their case and their distress in black and white, must get an adequate response. I am hopeful that I can put forward a proposal to the noble Lord, Lord Empey, and the noble Lord, Lord Rogan, that will help us move this matter forward, but your Lordships must be more of a judge of that than I am. My proposal is that the Department for the Economy in Northern Ireland—not on our instruction but because it believes it to be the right course of action—sets up a unit within the department, under independent chairmanship, that will be responsible for examining the case of every individual who has received funds from the RHI initiative and believes that they have experienced hardship. I propose that each element of their case is considered in thorough detail and with their participation, in order to understand exactly what that hardship looks like.

As a consequence of that, and with the Northern Ireland Affairs Committee inquiry running alongside that, those two elements should together help inform the part of the Bill that covers the issue of the voluntary buy-out. Currently, the voluntary buy-out is more or less a statement that lacks mechanical details. If we construct the buy-out to adequately and appropriately meet the needs of the farmers who rest within it, it could be adjusted in accordance with these elements. At the same time—and necessarily—the Northern Ireland Affairs Committee will consider future issues, and this should inform the overall functioning of this—not just the buy-out but the wider questions that rest within it.

Now, I will not try to sell your Lordships a pig in a poke, so what I will need to do to make this function properly is lay a written report before your Lordships’ House, so that your Lordships can see what this would look like in practice. There is no point in pretending that this can be achieved in a fortnight—there are too many cases that need a thorough and detailed examination. The point is, however, that we need to be in a situation where the compensation element is adequate and informed by these elements. If we can move forward on that basis, we can go some of the way towards meeting the issues raised by the noble Lord, Lord Empey.

[Lord Cormack]

My noble friend is obviously trying very hard to be helpful, for which we are grateful. Would it be possible, on Third Reading, to add a short schedule to the Bill that would refer to this proposal?

[Lord Duncan of Springbank]

I always like to be asked a question, and I turn my eye gently and think: I have no idea of the answer to that. I will, however, find out the answer and report back to the noble Lord in real time as soon as it is available.

The reason that I am putting this proposal before your Lordships’ House tonight is because it would be unfair to pretend that we can treat all those individuals as an average; we need to see each in their own terms, understand how their world fits together and how this invidious scheme has been constructed to their detriment. It is unfair of this or any Government to expect those acting in good faith to be penalised for that. We must also be cognisant of the draw on the public purse—there is no point pretending that there is a bottomless pit of money for our approach to this matter. The noble Lord and I have, however, had discussions about what moneys might be required.

It says here, “No to bringing back on Third Reading”. I am afraid, therefore, that the answer to the question from the noble Lord, Lord Cormack, is no. I can, however, put on record that we will need to understand the timing of this to be able to deliver it—without the timing there is a risk it will drift into the long grass. I give an assurance that we will be able to—

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

Lord Cormack Excerpts

3rd reading (Hansard): House of Lords
Tuesday 19th March 2019 Lords Chamber

[Lord Duncan of Springbank]

That the Bill do now pass.

[Lord Cormack (Con)]

My Lords, I want to speak very briefly to reiterate something that we said last week at Second Reading and touched on again earlier this evening in Committee. When there is no Northern Ireland Executive and no Assembly in session, it is quite wrong for Bills touching the lives of virtually every citizen in Northern Ireland to be disposed of so unnecessarily quickly in this House. I know my noble friend has some sympathy with this point of view—if I may say so, he was magnificent in Committee. I would be grateful if he discussed it yet again with the powers that be through the usual channels. I am delighted to have seen the most senior representative of the usual channels, take a place—not his place—while I have been speaking.

There is one other point I would like to make. At Second Reading last week, my noble friend said that he would try to come back when we were dealing with the Bill today with any further information on the plea that many of us have made for the Assembly to be called into being and on the desirability—which I think we all share—of having some mediator figure to convene the various parties in Northern Ireland. It is now well over two years since we had an Executive or an Assembly. People in Northern Ireland have been short-changed by their politicians.

It is also deeply unfortunate that, when the real stumbling block over Brexit has been the border, we have had no opportunity to hear what the politicians elected to the Assembly in Northern Ireland think or for them to put anything into the debate. Although none of us knows whether this would have made any significant difference, given the fact that 56% of Northern Ireland voted to remain in the European Union and none of the elected representatives in the Westminster Parliament take that view, it would have been an opportunity that might just conceivably have produced some interesting ideas. So for every possible reason—and I am glad to see the noble Lord, Lord Murphy, nodding assent—I hope, as we all do, that we have an Assembly and Executive in being before long; but that we devote more time in this Chamber, where so much responsibility does and should lie, in the absence of a devolved Administration. I look forward to my noble friend’s response in due course.

[Lord Bruce of Bennachie (LD)]

My Lords, like other Members, I was somewhat compromised by the early business and not able to be here in time for the start of it. I do not wish to repeat the debate. I want to show appreciation for the amendment in the name of the noble Lord, Lord Empey; the fact I was not able to speak to it was for no reason other than that, although I supported it, I wanted to observe the courtesies of the House—which I noticed not every other noble Lord did.

In those circumstances, I want to say two or three things. First, this Bill presents this Chamber with a choice between a rock and a hard place. Most of us are, I think, very unhappy about the fact that rates and the renewable heat incentive scheme were lumped together in the Bill. While the Minister did not acknowledge that that was a tactic, he did say it was something he did not approve of and hoped would not happen again.

My second concern is that we were faced with the situation—it probably determined why the noble Lord, Lord Empey, withdrew his amendment—that if we passed the amendment, there was a danger people would receive no payment on 1 April, which is a consideration. At this stage, it is important to acknowledge that the Minister has clearly presented a constructive compromise—but, as the noble Lord, Lord Empey, pointed out, one he does not have the authority to guarantee. The House has accepted that in good faith but with real concerns as to where it might lead us. Had we supported the amendment from the noble Lord, Lord Empey, the consequences might have been difficult.

Like most other Members, I have received emails from a number of different businesses across Northern Ireland—not all of them farmers—expressing their angst and concern. I have engaged with them, responded to the emails and forwarded them all to the Minister. I do not need to repeat it, but we need to acknowledge that we are passing a Bill that effectively—how can I put this?—gives authority to the denial of ministerial responsibility for giving guarantees and assurances on which people relied and on which they have been betrayed. I am not comfortable with giving a Bill that does that a Third Reading, and I do not think your Lordships should be either.

The thought that has occurred to me throughout the whole process around the renewable heat incentive scheme is this: the 12% return was known from the beginning, as the Minister acknowledged. I find it difficult, if not impossible, to believe that on two separate occasions the Northern Ireland Executive introduced tariffs which could not conceivably have come close to representing a 12% return on the investment and which were, as anybody providing any objective analysis would very quickly have observed, in breach. That raises the most fundamental questions of propriety, honesty and integrity, of both politicians and, I am afraid, civil servants too. My instincts, however, are that civil servants did not understand what they should have, but I do not think that lets them off the hook.

People will look for a price to be paid, and the two prices to be paid are these. First, will the people who genuinely relied on this and suffered get compensation? Secondly, in the process of doing that, are we in danger of compensating people who took advantage of the system and who could get an extra twist out of it? That, I suggest to the Minister, is something that we need to avoid.

Having said all that, we have no choice but to pass this Bill tonight. However, we should record that it is being passed under duress, at speed, without adequate consultation and with consequences to follow both in the courts and in the political arena that will probably haunt Northern Ireland for many years to come.