Northern Ireland (Interim Arrangements) Bill

Steve Baker Excerpts

2nd reading
Wednesday 10th May 2023 Commons Chamber

[The Minister of State, Northern Ireland Office (Mr Steve Baker)]

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

It is, of course, with profound regret that I return to the Dispatch Box to bring forward legislation in the absence of a Northern Ireland Executive. I am sure that right hon. and hon. Members across the House will agree that this is not a position that any of us would want to be in. The Government remain committed to supporting the restoration of the Executive in Northern Ireland as soon as possible. Functioning governance for Northern Ireland by its elected representatives is the best outcome for citizens.

Last month, we all came together to reflect on the 25th anniversary of the Belfast/Good Friday agreement, and to mark the progress that Northern Ireland has made over the past quarter-century and the peace and prosperity that the agreement has brought. Of course, we also reflected on the work that remains to be done. The anniversary is an opportunity for us all to recommit to building an even brighter future for Northern Ireland. We need to see Northern Ireland’s political leaders come together and restore the devolved institutions established by the agreement, which is the surest way of delivering on the priorities of Northern Ireland’s peoples and of safeguarding our Union.

We have been very clear that to strengthen and protect the Union, we must persuade people and demonstrate that devolved government within the UK is what works best for Northern Ireland. It is in that spirit that we agreed the Windsor framework, seeking to restore the balance of the agreement and solve the issues posed by the Northern Ireland protocol. Now is the time for the parties to move forward together for what is the best possible future for Northern Ireland, and to deliver on the priorities of its people. That includes a more prosperous economy and better, more sustainable public services.

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

The Minister quite correctly draws attention to the fact that the best way for Northern Ireland to have success in the future is to get devolved government up and running within the United Kingdom. Does he agree that that can best be done when all main sections of the community in Northern Ireland buy into the process of governance by which they would be governed?

[Mr Baker]

Yes, of course. My right hon. Friend the Secretary of State and I agree that it must involve all sections of the community. I will be very frank with the hon. Gentleman: I recognise that the Windsor framework is a hard compromise for many sections of the Unionist community because it leaves in place some European Union law in order to have an infrastructure-free border. That is why it is also a hard compromise for Conservative Eurosceptics and for me. But I recognise that, of all the plausible futures for Northern Ireland before us, the one that is best for the people of Northern Ireland is to accept the Windsor framework, including the Stormont brake and the consent mechanism, to restore devolved government and move forward together.

As I said when I answered the final oral question earlier, Northern Ireland has an amazing opportunity. Northern Ireland Members will know better than me the incredible strength of the entrepreneurial private sector in Northern Ireland. What I see is a sector that could, with political stability, soar. With privileged access to the UK, to the EU, and to our free trade agreements under UK services law, we could achieve amazing things that will secure Northern Ireland’s prosperity, and, I believe, secure consent for Northern Ireland’s place in the Union. But I think that, for the moment, I had best leave unsaid what will happen if people continue to go without good-quality devolved government and where that will lead. If that is a topic that Members wish to pursue, perhaps we can have a different debate. I hope that is helpful to the hon. Member for East Londonderry (Mr Campbell).

I want to be absolutely clear that my right hon. Friend the Secretary of State, the Prime Minister and I all wish to preserve Northern Ireland’s place in the Union, respecting the UK’s commitments under the Belfast/Good Friday agreement. We are Unionists, although I am aware that there are some commentators for whom we can never be Unionist enough—but I am allowing myself to digress and I should get back on track.

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

It may just be the way in which the Minister phrased what he said, but this is important: our ability to trade with the rest of the United Kingdom is not a privilege; it is a right. It is a right under article 6 of the Act of Union that we have the economic right to trade, barrier-free, with the rest of our own country. Yes, privileged access to the EU, but let us not talk about “privileged access” to the UK market. We are part of the United Kingdom.

[Mr Baker]

The right hon. Gentleman is absolutely right, and I apologise to him and to Northern Ireland Members. I had it in my head to say “privileged access to the EU”, but seeing him sitting there, I wanted to mention the UK first. It was a mistake. He is absolutely right that Northern Ireland’s right to trade unhampered into the UK is one that, as we explained at oral questions earlier, we continue to stand by and preserve, and which, under the Windsor framework, we have permanently guaranteed. I am grateful to him for clarifying that point. I will press on.

Before I provide an overview of the Bill, I should say a few words on Northern Ireland’s public finances. As the Bill’s provisions indicate, we are acutely concerned about the long-term sustainability of public finances in Northern Ireland. It was with considerable disappointment that my right hon. Friend the Secretary of State found it necessary once again to step in and set a budget for Northern Ireland for 2023-24 in the absence of a Northern Ireland Executive and Assembly. As the Secretary of State has made clear on multiple occasions, the extent of the budget pressures facing Northern Ireland Departments is extremely challenging. Departments are facing difficult and unavoidable decisions in the current difficult and frustrating circumstances.

The Government recognise that we need an Executive in place to take some of those difficult decisions and make the choices on budget priorities—choices that officials should not have to face without Ministers. We stand ready to work with a restored Executive on that, but in the meantime, we the Government of the UK have a responsibility to ensure that public services and the management of public funds can continue in their absence, so we will in due course take forward legislation to put the budget on a legal footing. Members of this House will have the opportunity to debate those allocations in detail at that time, if and when we come to it.

[Stephen Farry (North Down) (Alliance)]

There is concern about the nature of the current civil service guidance. The Government believe that the civil service has the capacity to take decisions; civil servants do not believe that they have the vires to take decisions, particularly in relation to statutory functions. Does the Minister recognise that we are at somewhat of an impasse in the current status quo, and that there is a danger that we end up either with difficult decisions being deferred, which makes them more painful, or with a managed overspend, which is another very undesirable situation?

[Mr Baker]

I do recognise those aspects. We have published today revised guidance and those relatively small changes are now available on gov.uk. We will certainly be interested in the hon. Gentleman’s views, and those of all relevant parties, on that guidance. In a nutshell, I agree with him that the best way forward is to restore the institutions. I am trying not to hector, but we are all very frustrated. As I have repeatedly said, I recognise that the Democratic Unionist party and Unionism more broadly face a very difficult compromise, but I am committed, as I know the hon. Gentleman is, to saying that devolved government in Northern Ireland is the best way forward.

[Simon Hoare (North Dorset) (Con)]

Will my hon. Friend give way?

[Mr Baker]

I will, and once I have done so I will try to press on.

[Simon Hoare]

I am grateful to my hon. Friend for giving way. Picking up on the point raised by the hon. Member for North Down (Stephen Farry) with regard to the role of civil servants, is the Minister able to consider seconding GB civil servants with experience of delivering dynamic change management to both the Northern Ireland civil service and the Northern Ireland Office in order to help deliver those changes? Although we hope it will for a short period of time, all hands are needed to the pump.

[Mr Baker]

My hon. Friend makes a very sensible suggestion. I am sure it will be considered in due course, but I hope he will not mind me saying that it would be best if that request came from a restored Executive. I know that I sound like a broken record, but that is the present issue.

I will press on. First, I express my sincere thanks to Opposition Members for continuing to ensure that Northern Ireland is served as well as possible and for not making it a political football. I appreciate that most sincerely.

The Bill does three important things. First, it continues the provisions relating to decision making for Northern Ireland civil servants, which Parliament passed in December in the Northern Ireland (Executive Formation etc) Act 2022. Those provisions, which clarify the decisions that civil servants in the Northern Ireland Departments can take in the absence of Northern Ireland Ministers and an Executive, are due to expire on 5 June. Under this Bill, those powers will continue until an Executive are restored. This will avoid a governance gap arising if an Executive are not in place by 5 June. As before, senior officers will be required to have regard to guidance, now published, set by my right hon. Friend the Secretary of State and the Government. That draft is out there, and we will take representations on it.

The second thing that the Bill does, and this is a little more novel, is give power to the Secretary of State to explore, with Northern Ireland Departments, options for budget sustainability, including further revenue raising, in Northern Ireland. Alongside allowing him to commission advice, the Bill will allow the Secretary of State to direct consultations to be held by Northern Ireland Departments on those matters. These powers are time-limited and apply only until an Executive are formed.

[Colum Eastwood (Foyle) (SDLP)]

I am grateful to the Minister for giving way. He has talked about revenue raising. It is possible that a new model for funding higher education will be looked at. Given that all Governments have said that they want to ensure an expansion in student numbers in Derry, can he guarantee that that hope and desire will be protected under any new funding model?

[Mr Baker]

As the hon. Gentleman knows, I cannot guarantee what a restored Executive will choose to do, but I can guarantee that we will listen to him and all relevant stakeholders. Indeed, we meet the university frequently—I did so on a recent visit. We certainly wish to take the advice of the universities and, indeed, representatives from Northern Ireland as we work towards commissioning advice. Without wishing to preview what we are likely to do, of course student finance is an important matter to consider. I am grateful to the hon. Gentleman.

The powers are deliberately focused on official advice and consultations on budget sustainability. Final decisions on implementation are best taken by locally elected representatives, and this Bill does not give the Secretary of State any power to direct implementation of such budget measures.

The third thing the Bill does is ensure greater political oversight of the management of public money in the absence of the Assembly, by providing for Northern Ireland Departments’ accounts and associated documents to be laid in the House of Commons. In previous absences of the Northern Ireland Assembly, the law has provided for that scrutiny to fall to Parliament, and the provision in this Bill will do that again. This provision will be active for all periods where there is no functioning Assembly, on the basis that public bodies must always be scrutinised to ensure good management of public money.

In conclusion, the measures in this Bill will ensure a continuation of the current Government’s arrangements in Northern Ireland.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister very much for what he has said so far. My constituents are concerned about the issue of childcare. I know that the moneys allocated by this House for childcare are for England alone, but as we approach the council elections, my constituents and others I have met on the doorsteps over the past few days have informed me that they are very concerned that Northern Ireland has not been offered childcare arrangements similar to those in England. Whether that will come through the Barnett consequentials or elsewhere, it has to happen. I am making a constructive comment, and I hope that the Minister will accept it as such. Only 60% of employed women with dependent children work full time, as opposed to 95% of men with dependent children. It is clear that the lack of affordable childcare—this is what they are telling me on the doorstep—is holding back women in Northern Ireland. What can be done through this interim arrangements Bill to enable childcare provision in Northern Ireland?

[Mr Baker]

I have enormous empathy for what the hon. Gentleman says. He is right to say that without childcare, women will be held back. That is why my right hon. Friend the Chancellor included so much on childcare in his Budget statement. As awkward as it is for me to once again be a stuck record, the hon. Gentleman knows that it is a devolved area. Barnett consequentials are relevant and it will be for a restored Executive to put these things in place. I am not for a moment pretending that this is a perfect or permanent solution for governance in Northern Ireland. These are interim arrangements and we very much hope, for reasons that I have begun to sketch, that we might be able to persuade Unionism to support the return of the institutions so that we can make sure that Northern Ireland gets all of the services for which he passionately and rightly argues.

The measures in the Bill will ensure the continuation of governance arrangements should there be no Executive when they expire on 5 June. They are not, and cannot be, a substitute for devolved government, as I have just said. They are by no means ideal, particularly in the context of this financial position. I want particularly to thank Northern Ireland civil servants, because they are in a very difficult position and we are extremely grateful to them for the burden that they are taking on. We continue to be grateful, and we will continue to give them what support we can.

The marking of the Belfast/Good Friday agreement has reminded us all of the importance of making the institutions in Northern Ireland work. This Government believe that an effective and functioning devolved government is crucial to showing that the Union works for the whole community in Northern Ireland. That is why the restoration of the Executive remains a Government top priority. We will continue to do everything we can to make that happen, and as we do so we will keep these arrangements under review. But for now, I commend the Bill to the House.

--- Later in debate ---

[Mr Baker]

With the leave of the House, I rise to close the debate, and I thank all those who have participated in it. Once again, we have seen that on the main substance of the Bill there is wide agreement. There is agreement that it is necessary but regrettable, as we continue to seek to avoid the governance gap.

I will now seek to respond to as many points as I can. The shadow Secretary of State raised the issue of some difficult decisions being too much for officials. We recognise that the Bill is an interim arrangement. It clarifies the powers that civil servants need in order to maintain public services in the absence of an Executive. We recognise that civil servants will be uncomfortable taking some of the difficult decisions that are needed. Indeed, it is possible that they will feel unable to take them, but that, of course, is why we need the Executive back. I am aware that we are sounding like a stuck record, but getting the Executive back is what we are seeking to do.

Before I go any further, I will just say to the hon. Member for Gower (Tonia Antoniazzi) that I know the Prime Minister would want me to say that he is fully committed to the return of devolution, but that is a point to which I shall return later.

My hon. Friend the Member for North Dorset (Simon Hoare), who chairs the Northern Ireland Affairs Committee, asked about advice. He raised a great point and I am happy to clarify that it is our intention that the options developed for budget sustainability will be shared with the new Executive, and we hope that the new Executive will act swiftly to implement such measures. Further to various points that he made in relation to direct rule, I am absolutely clear that the Bill does not give us any powers to implement measures. I hope that is helpful to my hon. Friend—it is just the powers of the Secretary of State to direct that there should be advice and consultations, which would fall away.

The hon. Member for Gordon (Richard Thomson), who speaks for the SNP, made a speech to which I listened very carefully. I am happy to say that, on this occasion, I did not spot any areas where I disagreed with him, but I shall have to revisit Hansard. I am grateful to him for the manner in which he has approached this debate, and I can assure him that it made a pleasant change.

A number of Members have talked about the budget. I know that if the moment comes that we are forced to bring forward a budget Bill, we will no doubt touch on all of the issues in detail, but I hope the House will forgive me if I do not go into any further detail on that this afternoon. What I will say is that we will have to bring forward a Bill if there is not an Executive, which I and the Secretary of State will regret should that be necessary.

On the issue of funding, the Government have, for many years, recognised the unique challenges that Northern Ireland faces. We have provided about £7 billion in additional funding to Northern Ireland since 2014, on top of the Barnett-based block grant and the Northern Ireland budget. Per person, that is around 20% higher than the equivalent UK Government spending in the rest of the UK. I am well aware of the Fiscal Council’s report, which suggests that, on a needs basis, it should be even higher, but I have to say that 20% extra would go a long way in Wycombe—the streets are not all paved with gold there.

[Gavin Robinson]

Will the Minister give way?

[Mr Baker]

I will, if the hon. Gentleman will let me finish my point.

We do need the Executive back, and not because we believe all the problems will go away—far from it—but because we need the problems to be addressed by Northern Ireland Executive Ministers. I am very clear that the road ahead will be long and hard for those Ministers.

[Gavin Robinson]

Does the Minister accept that, within the next two years, the upward trajectory for the budget in England is 6%, but the trajectory in Northern Ireland is 3.6%? Per household, that equates to £2,000 less in Northern Ireland than for his constituents in Wycombe.

[Mr Baker]

I am confident that the hon. Gentleman has done his homework, but I hope he will forgive me for saying that I will not confirm the figures when I do not have them immediately in front of me in the terms that he has put them. As I mentioned in oral questions earlier today, for all of us in this House, and indeed in all the devolved institutions, we do need to engage with the fiscal projections of the Office for Budget Responsibility. There is no doubt in my mind that, for the rest of our political careers and far beyond, there will be a problem with meeting the many demands of age-related spending. All of us will need to rise to that challenge, as it will need, in particular, healthcare reform. The Bengoa report is long since overdue in implementation. I also talked earlier about healthcare.

A total of £600,000 a day is spent maintaining a divided education system. It cannot be right just on a cost basis, never mind all of the social divisions that it leads to. That conversation needs to be had. I have made that position clear. The Government’s position is very clear: we are in favour of integrated education. I know that there will be a spectrum of views on this, but when it comes to funding, we are all clear that the problems that are faced will endure. We are clear that there will need to be a conversation about the Barnett formula—I am aware of the Barnett squeeze—but none of these things will be anything like plausible to solve, in a way that will be acceptable to all sections of the community, until the Executive is restored.

[Sammy Wilson]

I ask the Minister, whose party talks all the time in this House about choice in education, why he wishes to shoehorn education in Northern Ireland into one particular system. Does he not accept that, in Northern Ireland, there are those who choose to have church education, those who choose to have grammar school education, and those who want to have integrated schools? Does he not accept that the same choice that he would have for his constituents should be available to people in Northern Ireland?

[Mr Baker]

I absolutely do. Since the right hon. Gentleman mentions my constituents, I am happy to tell him that we are a grammar system in Wycombe and that the Highcrest Academy has built what it calls an “all ability” school there, which I regard as a comprehensive. Strangely enough, I helped it against the forces of the hard left, which were trying to avoid building an all ability school under the grammar system, and I rather approve of its ability to bring back choice for parents.

We have a co-operative school in my constituency, which I support, and a Catholic school—by the way, Muslim parents, and there are many in Wycombe, choose freely to send their children to the Catholic school. I am all in favour of school choice for my constituents and for the right hon. Gentleman’s constituents, but the question is at what cost. That question is one that he and his colleague Members of the Legislative Assembly need to answer in a re-formed Executive.

However, when I go over to Northern Ireland as a Minister and meet young people who say to me, “I was 16 before I met my first Catholic”, or “I was 18 before I met my first Unionist”, there is so much wrong with that. I find myself amazed that that is even a conversation in the 21st century. Yes to choice, but at what cost?

[Stephen Farry]

I welcome what the Minister says in relation to integrated schools, but I have two points for him. First, I want to reinforce that there is significant demand for integrated schools right across the community in Northern Ireland. Secondly, and most relevant to this debate, does he recognise that moving from a split system to more of a shared, integrated system involves some degree of investment? The problem is that the Department of Education cannot do that at present, in a context of declining budgets where it is trying to protect what it has.

[Mr Baker]

The hon. Gentleman’s point is very well made; he knows that I hear it now and have heard it in the past.

We are clear that finances in Northern Ireland are not sustainable, but we are also clear that it is for an Executive to act on it. In the absence of an Executive, the Government through this Bill will ensure that time is not lost in starting to think about and work on that. We will commission advice from the Northern Ireland civil service on the options for budget sustainability in Northern Ireland, and we are happy to engage with any Member of the House in more detail about what we commission.

I heard what the hon. Member for Foyle (Colum Eastwood) said, and I am particularly interested in engaging with him and the universities. I also recognise the point he makes about places in Derry. He is right that Northern Ireland will never be a laissez-faire paradise, and it will be necessary for policy to embrace the point he makes about rebalancing towards Derry/Londonderry.

We are happy to engage with hon. Members, although I do not wish to pre-empt any particular piece of advice we might commission. We are absolutely clear that it is for locally accountable leadership to take these difficult decisions, but we are clear that those decisions will endure.

Questions were asked about future strategy, but the Government are clear about our strategy for Northern Ireland: devolution, moving forward with the Windsor framework and making the most of our new, constructive relationship with the EU and Ireland to improve that framework in a collaborative way when problems arise, as they inevitably will. Since this point came up earlier, we will then also work towards the review of the trade and co-operation agreement and try to improve our overall position.

While we are doing that—because, as has been said, we can do more than one thing at once—we will do everything we can to cheerlead for Northern Ireland. It is an amazing place, loved by people all over the world and full of talented people with an incredible capacity for innovation and development. They deserve investment, and I for one want to see that they get it.

Finally, I join in the lament about the gap that has opened up between the Government and Unionists. Once again, this has been a painful debate for me to listen to. Sometimes hon. Friends in the DUP have directed their remarks at me, but I would say to them that I do not wish to be hard on them. I must say to my right hon. Friend the Member for East Antrim (Sammy Wilson) that I do not regret having given voice to people in Fermanagh who said, “Get on with it.”. That is what people want in Northern Ireland. There was no chanting—it was just a cry of “Get on with it”, and I am not sorry that I gave voice to that sentiment.

Hon. Members will have noticed that I have tried to be as emollient as possible in recent days—I really have. I have put on record that this is a difficult compromise for me too. I know that it is an even more difficult compromise for them to go back into the Executive with the Windsor framework, but I just say again that we have to choose from available futures.

Everybody here knows that it is not enough just to say what you want; you have to know how you will get it. I am clear, as we go forward with the Bill, that we do not want to be here again with Bills of this nature. We want to celebrate a return of devolved government, and yes, by all means, continue a conversation about the detail of the Windsor framework and what we can do to support the Union and Unionism. But, my goodness, I want us to get to the point, beyond this Bill, where we are celebrating the return of devolved government to solve the real problems that we face, and celebrating a Northern Ireland that has a much better and brighter future.

Question put and agreed to.

Bill accordingly read a Second time; to stand committed to a Committee of the whole House (Order, this day).