Northern Ireland (Regional Rates and Energy) (No. 2) Bill — House of Commons, 2019-03-06
Topic: Government Operations
Maria Colette Caulfield (Conservative, Centre-right): The reason we are here is that the Assembly has not been sitting for over two years now. There are many members of the Northern Ireland Affairs Committee here this afternoon. In our public evidence session this morning, the leader of the Green party in Northern Ireland said that she thought that the Assembly would not be up and running for the rest of this year. It is therefore likely that we will be returning here in the next few months, or maybe even this time next year, with similar Bills looking at the budget, as we did yesterday, and rates. I hope that is not the case Many of us are putting pressure on all political parties to get back around the table and get the Assembly up and running because, as we now start to scrutinise devolved issues, we hear week in, week out, about the impact that that is having. We have heard from headteachers in Northern Ireland about issues of procurement. Even simple, basic supplies are not being procured properly and effectively, and money is being wasted on them. We have heard from the Commissioner for Children and Young People that the Salisbury review of education has meant that some funding reforms that should be taking place to enable money to be better spent in small rural schools are not happening because there is no one to take that decision. It is not just about not getting the money to spend; scrutiny of the decisions on how it is spent is not happening either. Both are equally important. The RHI is a classic example of why we need that scrutiny. The RHI was a significant factor in the fall of the Assembly in the first place. The fact that we are now making decisions on it without any real scrutiny apart from a couple of hours in this Chamber is significantly worrying given the impact that it will have on small businesses in Northern Ireland, particularly in the farming community I have sympathy with the Secretary of State, and I agree that we have to make a decision this afternoon, or else any subsidies will stop completely, which would be a huge disservice to the people of Northern Ireland. However, the fact that it has been left to the last minute to make this decision will have a real impact. As a member of the Northern Ireland Affairs Committee, I have been contacted by Northern Ireland businesses telling me that many of them—some have 10 biomass facilities on their farms—have gone to the banks to borrow £250,000 or £500,000 in the expectation that they would get a guaranteed subsidy over a 20-year period. In any other walk of life, someone who breached that agreement would be in court having to defend that or having to pay compensation It is not the fault of anyone here in this Chamber that we are in this position, but neither is it the fault of farmers or businesses who took these decisions. Many will go under if we do not address this issue. To add insult to injury, people in the rest of the United Kingdom will be getting £20,000 per biomass incinerator, whereas farmers, or whoever else has installed them, in Northern Ireland will gain only £2,000. That is a real concern. The Ulster Farmers Union has rightly raised that issue; I know that the Secretary of State has met its representatives to listen to their concerns. They point out that this is happening at a particularly difficult time for Ulster farmers with Brexit day looming We should not be making these decisions, and that is a great reason why we need the Assembly back up and running. The decision was made to set up the scheme, and it should be the Assembly taking responsibility when the budget has spiralled out of control and tough decisions are required. It is frustrating that, once again, people in Northern Ireland have gone to the polls and elected representatives but have no representation in Stormont. Some communities have no representation here so are completely at the mercy of politicians such as me, who have an interest in Northern Ireland but are not at the coal face, experiencing the impact of the decisions. It is down to Northern Ireland politicians to get back round the table and sort this out I have a few questions for the Minister to respond to when he sums up. Can the Northern Ireland Affairs Committee have ongoing scrutiny of this issue, so that we can look at how the buy-out system is working and the impact of the reduction in subsidy and take quick action if it is having a devastating impact, as some fears suggest? What happens if the Executive are restored in the meantime? We heard this morning in the Select Committee that that is unlikely to happen soon, but if it did, there would be an impact on clause 4 in particular and how the budget would be set. We cannot set in place a system today that will be overturned in, say, six months. That would be really unfair on those affected Can we have clarity on why there is such a difference between Northern Ireland and the rest of the United Kingdom? A number of Members have raised that, and it would be helpful to understand it. Can we have further scrutiny of how buy-out payments will be achieved? I have grave concerns that it will be based on the cost of biomass installations, but far greater costs, such as interest payments on loans, will have to be taken into consideration I share Members’ concerns—we should not be in this position. It is not this Government’s fault that a scheme was set up that was never going to work financially, but we have a responsibility to the people of Northern Ireland to ensure that the solution put in place is fair and does not have a detrimental effect on those who invested in all good faith.