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4.32 pm
Mr. Ian Taylor (Esher and Walton): I return the compliments and welcome the Minister of State,Northern Ireland Office, the hon. Member for Torfaen (Mr. Murphy), to his post at the Northern Ireland Office. He has a very responsible job, and I was interested in the way in which he presented the estimates. As he rightly recognised, we have a new, fresh team. I thank him for the welcome that he gave to my hon. Friend the Member for Bracknell (Mr. MacKay) and me. I must also mention my hon. Friend the Member for Beverley and Holderness (Mr. Cran). He is now an Opposition Whip and therefore no longer frozen in silence, as was the tradition when we were in government. He will be playing an active role in the proceedings of the House. I recognise the Under-Secretary of State for Northern Ireland, the hon. Member for Clydebank and Milngavie (Mr. Worthington), and look forward to hearing him wind up the debate.
The Minister will not be surprised if I keep my remarks fairly brief, partly because, as someone who has just been invited to take on this responsibility, my first task is to listen. I am sure that there will be some interesting contributions, which will enable me to learn a little more about the issues affecting constituents in the Province.
I was interested to hear the Minister's detailed comments on policy. It is important to put it on record that the Northern Ireland economy enjoys its best prospects for generations. We sincerely share the hope that that continues. Unemployment in May was at its lowest for almost 17 years. At 8.4 per cent. of the work force, it is still too high and there were some disturbing announcements this week that the Minister mentioned, but the overall picture is positive.
Conservative policies delivered low inflation, low taxation and low interest rates for Northern Ireland. That framework, together with a flexible labour market and the removal of burdens on business, has ensured that Northern Ireland firms remain competitive in an increasingly competitive global economy. I hope that my experience as a Minister at the Department of Trade and Industry will be of benefit during debates on what the Minister rightly called the real Northern Ireland economy, away from the troubles that have beset the Province.
Manufacturing exports were worth more than £3 billion in 1995-96--an increase of almost one fifth. The Province received more inward investment that year than ever before, with 35 projects, worth £430 million, creating or safeguarding almost 5,000 new jobs.
In one respect, 1995-96 was unique. The IRA ceasefire gave new hope to everyone in Northern Ireland. Figures released recently by the Industrial Development Board show that inward investment and business confidence were dealt a clear blow by the IRA's return to violence. I endorse the Minister's comments about the consideration that those who threaten or carry out violence must give to the disturbance that they cause to the economic prospects of the citizens of the Province. My right hon. Friend the Leader of the Opposition confirmed yesterday that we are anxious to continue the bipartisan approach to the peace process, provided that the Government's actions continue to be in the interests of the people of Northern Ireland. I echo those comments.
The paramilitary ceasefires enabled the previous Government to reduce spending on law and order by almost £300 million between 1995-96 and 1998-99, according to the estimates that we set out. Those funds have been released and earmarked for improving the quality of life for the people of Northern Ireland. That should be taken carefully into account if the problems increase, because that reallocation of resources cannot be sustained unless the IRA lays down its weapons once more.
The Opposition will work closely with the Government to bring about a new ceasefire, but the onus remains firmly on the IRA. The Prime Minister made that clear yesterday.
I should like clarification on some general points. I listened carefully to the Minister. Away from the troubles, there may be less inter-party agreement on how to keep the Northern Ireland economy vibrant. I do not disagree about the need to bring down class sizes. I also concur with some of the Minister's other comments, but we must be clear about some of the principles that the
Conservative Government set in train. Northern Ireland benefits from the current fiscal arrangements by £3 billion a year. In 1995-96, public spending per capita was almost £1,400 higher in Northern Ireland than in England. Will the Minister confirm that he has no plans to change those arrangements and that the more disadvantaged areas of the United Kingdom, particularly those in the Province, will continue to receive extra financial support from the Exchequer?
The Prime Minister yesterday confirmed his wish to devolve power to Northern Ireland when circumstances permit. Will the Minister confirm that the Government have no plans to introduce tax-raising powers for a devolved Assembly?
The private finance initiative has much to offer the taxpayer. The Northern Ireland Office has signed a small number of deals, worth about £4 million. It is imperative that more use is made of the PFI in Northern Ireland. It seems to have been endorsed by the Labour Government, but the disruption of the team that was running it has led to a sense of drift. I should like an assurance from the Minister that the removal of people who have tried to get the PFI going and the various reviews that are taking place will not disadvantage the people of Northern Ireland by causing delays in the projects that the PFI could assist. What action is being taken to ensure that the PFI benefits the Province?
The Chancellor of the Exchequer has introduced a completely new set of assumptions about growth, unemployment and other key economic factors. We believe those assumptions generally to be over-cautious. Can the Minister explain their effect on the services provided to the people of Northern Ireland and the higher taxes that they and the rest of us may be expected to pay?
I am concerned when I hear about root-and-branch reviews of every aspect of public expenditure. The Government seem to have come in on a wave of enthusiasm for reviews. I hope that the Province is not burdened by too many reviews, as they may well be a substitute for effective action.
Will the Minister assure me that Northern Ireland will not be penalised by the rigid approach of the Chief Secretary to the Treasury, that there should be no transfers between headings of expenditure and, in the broader Budget sense, no virements between Departments, even if resources that are freed up in one section of expenditure could be beneficial to another? I understand the restraint of using the Red Book projections on public expenditure for the current year and the forward year, but what happens within those caps? Are there movements between headings, and will that affect the estimates that have been laid before the House today?
Dr. Norman A. Godman (Greenock and Inverclyde):
The question by the hon. Member for Esher and Walton (Mr. Taylor) about reviews was rather rich coming from him. Many Scottish Tories fervently wish that the
I shall be brief, as hon. Members representing Northern Ireland constituencies wish to speak. The hon. Member for Esher and Walton was right to say that the order relates to everyday matters. However, as The Irish Times pointed out a couple of days ago, we still face
I was deeply unhappy that the previous Administration rejected--I thought in a squalid way--the use of a Caledonian MacBrayne passenger vessel for such a service, but that is in the past and that Government are now in internal exile. How much has the Northern Ireland Office spent on the project? Are there any forecasts in terms of the number of jobs that are likely to be created in Northern Ireland and Scotland, and what is the assessment of likely passenger volume on the ferry service?
The hon. Member for Esher and Walton mentioned the proposed Assembly. How will its acceptability be assessed? Will it be a costly exercise? In Scotland, we are undergoing a similar process, which will cost some money. How much thought has been given to that? Let me say in passing that I shall be delighted if the anachronistic first-past-the-post system is rejected in favour of a more democratic system.
Although I did not come here to make my hon. Friend the Minister work, I refer to the second report ofthe Northern Ireland Affairs Committee, entitled, "Underachievement in Northern Ireland Secondary Schools". For about three months, I was a member of the Select Committee. I am concerned about the funds that are directed, by way of targeting social need, to children who live in socially and economically deprived areas. As a Scots Member with a keen and deep interest in Northern Ireland matters, I do not consider that the Department of Education has a very good record in that respect and I say that with some regret.
The report was published just before Parliament was dissolved. Paragraph ii on page xxvi is entitled "School funding and social disadvantage". It states:
The paragraph continues:
"the pernicious threat of further IRA violence."
As that editorial pointed out,
"Drumcree looms on Sunday week".
I begin by asking my hon. Friend the Under-Secretary of State for Northern Ireland about funding. I start with a question about the new passenger ferry service link to Campbeltown and the Mull of Kintyre. As he knows, living on the Clyde, the service has long been attractive to the people of Campbeltown, Carradale, Tarbert and elsewhere. It could help to develop a useful tourist link between the west highlands, particularly the Mull of Kintyre, and the beautiful Province of Northern Ireland.
"It is quite clear that the figure of five per cent (for Targeting Social Need) is simply based on previous expenditure. TSN funding is money that would have been spent on analogous education projects, but with a new name. The five per cent figure does not seem to have been arrived at by a process which recognised TSN as a priority."
That is the key sentence. I hope that my hon. Friend will--dare I use the word--review and analyse the targeting of social need policy as matters seem to have gone badly awry.
"DENI should initiate debate and consult widely about the appropriate amount of the schools' budget to allocate to this major policy."
I hope that my hon. Friend will examine those matters closely. As I am one of the authors of the report, I should refrain from saying that it is a fine piece of work--however, it is.
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