Stormont House Agreement

Lord McAvoy Excerpts

Wednesday 7th January 2015 Lords Chamber

[Lord McAvoy (Lab)]

My Lords, first, I thank the Government for making advance sight of the Secretary of State’s Statement available to us. Her Majesty’s Opposition welcome many aspects of the agreement that the Minister has outlined to the House. It is not perfect, but it is a genuine advance on the stalemate of the past two years. We congratulate the Secretary of State, the Parliamentary Under-Secretary of State and her counterparts in the Irish Government on their painstaking and, I am sure, at times painful facilitation of the talks.

Throughout the political impasse of the past two years, we have repeatedly called for a more active role from the Government. We hope that the right lessons have now been learnt about the consequences of disengagement for political stability and momentum in Northern Ireland. I am sure that the Minister will agree that there is no room for complacency. As we have seen in the recent past, unresolved issues such as parades and flags have the potential to fuel public concern and disorder, and therefore ultimately lead to political instability.

Her Majesty’s Opposition also pay tribute to Northern Ireland’s political leaders for stepping back from the abyss and restoring some level of public confidence in their capacity to move Northern Ireland forward. It is acknowledged that they face unique challenges in managing the transition from a society scarred by conflict and sectarianism to a normal society. However, this acknowledgment does not mean exemption from difficult political choices about priorities, or any expectation of blank cheques from this or any future Westminster Government.

Turning to the agreement itself, Her Majesty’s Opposition welcome the adoption of a viable budget for the next financial year. It is right that this includes some elements of welfare reform while excluding the pernicious bedroom tax, which an incoming Labour Government will scrap.

However concerns remain about the Government’s rush to introduce legislation on corporation tax devolution, a decision that will have profound implications for Northern Ireland and the rest of the United Kingdom. There should have been a proper consultation process, including an analysis of the financial impact of significant reductions in corporation tax on Northern Ireland’s block grant, before introducing legislation in Parliament.

It is good news that a comprehensive system has been agreed to deal with the past. It is to be hoped that, over time, victims and their loved ones will develop confidence in the integrity of the new architecture and get the truth and justice they have been denied for too long. We also support the Government’s decision to make new investment available to boost integrated education, which is one of the most powerful manifestations of what a shared future can mean.

However, I have a number of questions for the Minister. First, what assessment have the Government made of the impact on the block grant for Northern Ireland of reducing corporation tax to the levels in the Republic of Ireland? Secondly, what criteria will be applied to determining whether penalties will be levied by the Treasury next year in connection with welfare reform? Thirdly, what is the timescale for the creation of a new system to deal with the past? Fourthly, what negotiating process will now be put in place to deal with unresolved issues such as parades and flags, and other identity issues such as the Irish language? Fifthly, what process has been agreed to monitor the implementation of this agreement?

These are genuine questions, to which we hope the Government have turned their mind. We do not want a situation where we are not totally and fully prepared—as far as possible—for any particular new situation in Northern Ireland.