Select Committee on Northern Ireland Affairs Minutes of Evidence


Examination of Witnesses (Questions 1-19)

RT HON SHAUN WOODWARD MP, MR NICK PERRY AND MS HILARY JACKSON

30 JANUARY 2008

  Q1 Chairman: Secretary of State, you are very welcome. We are being broadcast this afternoon and the clerk has just advised me that we ought to start promptly at three because of the fact that so many will be hanging on your words in Northern Ireland and elsewhere. Before I welcome you formally at three, perhaps you would just like to introduce your two officials. We do of course know Nick Perry well.

  Mr Woodward: Chairman, thank you very much indeed. In the spirit of openness and transparency, I think I will introduce my two colleagues by name and then I will allow them to describe briefly to the Committee what they do for themselves. Nick Perry and Hilary Jackson.

  Mr Perry: Chairman, I am Director General of the Policing and Security Directorate and I look after policing and related matters.

  Ms Jackson: I am Director General for the Political Directorate.

  Q2  Chairman: You are both very welcome. Secretary of State, could I now formally welcome you and say how grateful we are to you for coming. Welcome, Nick Perry and Hilary Jackson. This is the first time that you have appeared before the Committee formally although you very kindly met us when we were in Northern Ireland in October, and we had a good discussion then. It is the first time you have given formal evidence to the Committee and we look forward to seeing you at regular, if not too frequent intervals during the course of the year. Is there anything that you yourself would like to say by way of introduction before I begin the questioning?

  Mr Woodward: First of all, Chairman, can I thank you very much indeed for asking me to be before the Committee. It is a pleasure to be here this afternoon and it is a pleasure to have the opportunity to talk about what I imagine will be quite a wide range of issues. I think it might be helpful to signal to the Committee that obviously, we are now on our way to it being 12 months from the restoration of the institutions in Northern Ireland. Of course, there are critics but, by and large, it is my perception, and I believe it is the perception of the public in Northern Ireland by and large that this has been an extremely successful period. Whilst this is very much a process and not an event, it would be true to say that I think we are really seeing the opportunity for people in Northern Ireland to embrace a very different kind of shared future, and that the work of the Executive and of the Assembly of course is difficult—governing is difficult; everybody in this room knows that governing is difficult—and there are disagreements but this is truly a different Northern Ireland. It is certainly a Northern Ireland which, if I remember as a BBC reporter back in the 1980s, it is a completely different atmosphere. As I am sure this Committee will have found, it is perhaps indicative most of all that the kind of issues that are being discussed by people in Northern Ireland today, whether it is in the pub or in the Assembly or in the Executive, are issues that really make a difference to ordinary people's lives, ordinary people's work, and those are the issues of jobs, the issues of the Health Service, of education and of course, the last remaining part of the jigsaw is the devolution of policing and criminal justice, and I am sure you will want to touch on that this afternoon. Of course, it is not straightforward but, nonetheless, huge progress has been made, huge confidence is being achieved and I think again significantly, yes, there have been a small number of incidents that have taken place in the last six or eight months that of course have rightly attracted the interest and scrutiny of the public and the politicians, but what we have to see, I think, and the critical question to ask ourselves is when those incidents have taken place—and I am referring here specifically to the appalling murder, condemned by everybody, of Paul Quinn; I am talking of, for example, the attacks on the two police officers at the end of last year; I have in mind, for example, the attacks on the Orange Halls that have taken place. What is significant is that it has been universally condemned and that we are seeing a level of co-operation from the public with the police which, in the words of the Chief Constable, he has not seen before. We are not yet there. We in this room all know that but the fact that we are not there should never be allowed for us to obscure the progress that everybody in this room and everybody in Northern Ireland has made. Yes, it is difficult but the progress is significant and the benefits for the people living and working in Northern Ireland are absolutely huge.

  Q3  Chairman: I think we would all in varying degrees endorse all of that and we ourselves have noticed these differences. When we were in Northern Ireland less than a fortnight ago, and indeed in the Republic, we were particularly encouraged by the ever-increasing co-operation between the two police forces and so on. We welcome what you say. We know it to be true but we also know that some of the very unfortunate and some of the appalling incidents to which you have referred are of continuing concern. What I would like to do is just to ask you a couple of questions myself, and then bring in colleagues for a whole range of issues. As you move towards complete devolution, and you are a long way along that path, how do you envisage the relations between the Northern Ireland Office and the departments of the Northern Ireland Executive developing?

  Mr Woodward: I described in my opening remarks, I think, devolution very much as a process and not an event, and I think the work being conducted by the Northern Ireland Office, both in the run-up to the St Andrews Agreement itself and subsequently, has been very much part of that process. For our part, the British Government will have prepared the institutions of policing and criminal justice for devolution for May, as set out in the timetable. Colleagues from the DUP I know will readily point out to me that of course, whilst they absolutely in principle signed up to the Agreement, the timetable contained within the Agreement, which envisages stage two taking place in May of this year, was not something which they were readily obliged to sign up to. Nonetheless, I have noted, and I think everyone would acknowledge, that whatever differences there may be, people are certainly working within the spirit of wanting to achieve that. Institutionally, therefore, we will be ready once the Assembly, First Deputy, First Minister, indicate that there is cross-community support, to make that transfer in May of this year but it would be foolish for me in any shape or form not to recognise that this has to be something that the parties have to want and agree to.

  Q4  Chairman: Absolutely, yes.

  Mr Woodward: So this is not something which will be imposed by us on the Assembly, on the Executive, not least because it would be unworkable. Equally, I am still continuing to work within the spirit of the St Andrews Agreement and the timetable to make sure that we can meet the requirements if the Assembly and the political parties reach such an agreement within that timescale. Of course, we are encouraging the parties to want to meet that timescale because we believe that actually there is an appetite amongst the institutions and amongst the public to complete that process of devolution. I can perhaps best highlight this by talking about the outstanding work that is being done by the Executive and the Assembly in the preparations for the Investment Conference in May of this year. The work that Nigel Dodds and his colleagues have done has been exemplary. They have attracted considerable interest in the United States in wanting to come to a major conference that will take place in May of this year. However, in support of their work what I find again and again—and it has been readily endorsed by the White House and elsewhere—is of course everybody who wants to make an investment in Northern Ireland believes that law and order is a secured issue. I do genuinely think that if we find ourselves in May of this year unable to proceed to stage two, we will very carefully need to work together to provide the reassurances to those who wish to make substantial investment—

  Q5  Chairman: I sure that you will do that and I am sure that can be done. I do not want to foreclose on you now because this is a crucial area and we will further down the line come on to it, with one or two specific questions. I was concerned about the relationship between the NIO and the departments as and when—and do not let us go into the details as to precisely when—full devolution occurs, what will the relationship be? What will the presence be within Northern Ireland? The Northern Ireland Office will continue. Will there be a shedding of many people? What is going to happen?

  Mr Woodward: Of course the presence of the Northern Ireland Office will continue, as indeed there is a Scotland Office. What I think we have to envisage here is, we obviously have to give the public value for money. It is our intention not to try and run any kind of parallel department. We will reduce our functions to those functions which are not transferred. I would envisage that being a few hundred people. Of course we are engaged with all those members of staff in the Northern Ireland Office at the moment and with the trade unions to make sure that that transfer is achieved in a way that is satisfactory to all the parties concerned. We are, after all, talking about changing people's lives in terms of their working practices. I believe that is being very much embraced. The issues which are still the ones that have to be firmly addressed are the ones that the Donaldson Committee on working on. Those are issues around the nature and structure of the model of a new Department of Justice but again, Chairman, if I can just remind you, it is not that we are in a space whereby in practice there are very clear delineations between those remaining areas with the British Government and those that have been transferred. If you take, for example, the inquiry you have done yourselves into the Prison Service, you immediately see the way in which the Prison Service and the Health Department in Northern Ireland are working together. In fact, you could almost move through every single department—

  Q6  Chairman: Or not, as the case may be.

  Mr Woodward: Exactly, and you will see levels of co-operation, and indeed, if you take policing itself, the fact that Sinn Fein have joined the Policing Board means that this is not some single event that we are approaching. It is a process, and much of the co-operation is already taking place.

  Chairman: Of course it is. I do not want to be rude but I would like to ask for reasonably crisp questions and answers because there is a lot of ground to cover. I would like to move towards the background to the devolution of policing, et cetera and to bring in Dr McDonnell at this point.

  Q7  Dr McDonnell: Thank you, Secretary of State, for your answers. I want to pick up on a couple of points, particularly on the activities of former paramilitaries and the growing confidence in policing that you referred to earlier. Could you give us some information or some idea as to how much of a threat you see the former paramilitaries, or dissidents, let us call them, posing at the moment.

  Mr Woodward: I think first of all I absolutely stand behind the last IMC report and previous reports to that and the distinction they make between the activities of PIRA and other paramilitary groups. I think we have absolutely no reason to question the judgement the IMC have reached on that issue. There are outstanding issues, however: the conduct of those individuals in PIRA is an obvious case in point, the activities that took place with two attempted murders of police officers at the end of last year, very, very serious crimes and the resurgence of the kind of thing that many of us in this room had hoped had gone away but it very clearly has not. It is not wishful thinking to want it to go away because it is a normal society precondition that actually police officers are not murdered by criminals masquerading as paramilitary organisations. So yes, there is a threat out there. The murder of Paul Quinn—that is an issue, but again, I do not think that should be allowed to obscure the progress that has been made. Again, I think, as some of your own Parliamentary colleagues have said, Alasdair, one of the best ways we can really put a lid—and I am not trying to be unrealistic; I am trying to be realistic—in revealing just how these paramilitary individuals or so-called paramilitary individuals are really isolated in their community is to move forward to stage two of devolution of policing and criminal justice. They have no support in their community. We know that. Undoubtedly, if you take the case of Paul Quinn, there is, regrettably, an atmosphere of intimidation which still operates. We should put that on the table now and recognise it but it is an atmosphere which we will be better able to deal with by completing devolution than by resisting devolution and to some extent giving ammunition to those criminals who wish to disrupt the process. What they are trying to do is upset the confidence that is being built in the community. What they are trying to do is to make people afraid of taking responsibility.

  Q8  Chairman: Secretary of State, just a minute. I do not want you to go on too long because there is a real perception in Northern Ireland that there are those who are sharing power who are also sharing knowledge of some pretty terrible things, and one of the things that came across in the informal meetings and the more formal ones we had, both in Dublin and in Belfast, a couple of weeks ago was yes, of course there must be devolution but the timing must be right and, if it is pushed too quickly, the whole thing could blow up in your face. There has to be an absolute certainty in the minds of those who are sharing power with the other parties and of the public that nobody is giving succour to those who have committed terrible deeds. This is the underlying agenda. I think one has to recognise that.

  Mr Woodward: Then let us immediately pick that up and let us remind everybody that every single member of the Executive has taken a pledge of office. There are those out there, regrettably, who will try and use murky perception to prevent this from happening. I regret that because I actually think that if we look fairly and with clarity at this issue, and it is up to this Committee and others to provide clarity in what might be a murky background in some areas, to recognise that not only has every member of the Executive taken the pledge of office but when the murder of Paul Quinn happened there was condemnation across the political spectrum, and this is a very, very different position from a few years ago.

  Chairman: Of course it is.

  Q9  Dr McDonnell: We seem to have got on to Paul Quinn now. I was hoping to come to that later. Secretary of State, are you suggesting, as I have gathered from you when you were talking there about, as they call themselves, the Real IRA, that Quinn's murderers came from that background?

  Mr Woodward: No, what I am drawing on here—and again, I am very careful not to provide a running commentary on the police investigation, obviously specifically by the Garda, obviously they are doing that in conjunction with the PSNI and yes, I am in constant contact with the Justice Minister in the Republic about this, and it would not be helpful for me to provide a running commentary on the police investigation, although I know that some people have been tempted to do so. What I will say is that the Chief Constable has made it perfectly clear that it is conceivable that either former or low-level members of PIRA may have been involved—may have been involved—but equally, the Chief Constable has made equally clear that there is absolutely no basis whatsoever for believing that this had any authorisation, which is exactly the kind of issue that would have worried this Committee very seriously a few years ago. I do not want to prejudge this investigation but what I do want to do is to make sure that we keep a very clear sense of fact and fiction, and when it comes to, hopefully, the police making arrests, that we find ourselves in a position by which we have not obscured our judgement by providing a running commentary to the investigation as it proceeds. It is a difficult investigation but the police do have very substantial numbers of leads and they do have a very large number of people who they are talking to. Again, I think we have to recognise that that is substantial progress on what we would have seen just two years ago.

  Q10  Dr McDonnell: Secretary of State, I do not dispute the progress but one of the things I am trying to establish here is that I am not aware, and I do not think a lot of others will be aware, of the South Armagh brigade of the Provisional IRA ever requiring authorisation or clearance over 30 years. Probably what a lot of people are seeing out there is that that is still the case and they are still relatively freelance. I do not want to drag it out and I do not want to compromise any court cases but there are fairly reliable reports that the young man Nugent, who was a material witness to Paul Quinn's murder in that he was lured with Paul Quinn to the scene of Paul Quinn's death, has been threatened.

  Mr Woodward: I was aware of those press reports and the stories that were circulating before they were published in the newspapers over the weekend. The Chief Constable takes those things very seriously and, again, let me remind you of the Chief Constable's words in relation to this, which is that we will do everything we can to help bring Paul Quinn's killers to justice. That means we are conscious of the need to ourselves make sure that there is adequate protection for those people who may wish to be not only people who help the police with their inquiries but actually may be prepared to go into the witness box. We will do everything we can to build that climate of confidence so that people who are brave enough to come forward and actually reveal the killers of Paul Quinn can do so.

  Q11  Sammy Wilson: Can I take the Secretary of State back to a point which he made at the very start of his submission. I know, Secretary of State, that you are keen to have devolution of policing and justice on the timetable which presumably the Government had agreed with Sinn Fein but I do not think that people in Northern Ireland and those involved in the Assembly can work to a particular government timetable. We have to think of the stability of the Assembly. You mentioned that first of all there was huge public demand for this. Perhaps you would just clarify on what you base that. Secondly, that there would be an expectation from those who would be coming to the Investment Conference in May that it may even compromise the Investment Conference in May if there had not been devolution of policing and justice. I am not aware that those who have done preliminary work on this received any such indications from those they spoke to in America. I wonder if you would just clarify for the Committee on what you base your claim that there is a public outcry for devolution of policing and justice in Northern Ireland and that secondly, somehow or other, those who would come to this Investment Conference may be less than willing to attend, or indeed to invest money in Northern Ireland, if devolution of policing and justice did not occur. Is it not more important for them simply to know that there are no bombs going off and people being killed?

  Mr Woodward: There is quite a lot wrapped up in that question, Chairman. Let me just try and deal with some of the statements that were made in the preamble which, if they were allowed to rest, I think would be somewhat dangerous. It is not that I am keen on devolution; it is actually that the public are keen on devolution. They voted for it last year. They voted for it when the Assembly was restored. Of course, everybody in this room wants stability. That does not mean that I want it any less than you want it, Sammy. The fact of the matter is that actually, opinion polls, which you will be as aware of as I am, show that in excess of 60% of the public actually think we can get on with devolution of policing and criminal justice. That is not an unstable position if 60% of the public want it. Do I want to see that as 90% or 100%? Of course I do, and so do you. I do not think we are divided in any shape or form on the issue of wanting stability in Northern Ireland. To pick up what the Chairman said earlier, there is no wish on our part to unnaturally drive this forward but the fact of the matter is co-operation is taking place, Sinn Fein are part of the Policing Board. The reconstituted DPP has embraced those who have not been on it this time last year. Huge progress is being made and when I report to you that this is what I am being told in America in relation to the Investment Conference, it is just that. Most of the people who are coming to the Investment Conference this May, who we all welcome, I can tell you do not even think that there is an issue about stage two devolution. They think, quite rightly, as Sammy interprets it, it is about the bombs not going off any longer but what we all know in this room, I think, is that actually, it is essential that politicians in Northern Ireland can take responsibility for policing and criminal justice as the best way of preserving a peace which means that bombs will not go off.

  Q12  Chairman: These people coming over want a stable environment. That is what they want. They want to feel they can go out at night, have a meal, wander the streets of Belfast, go to the trade fair the next day, have their conference. That is what they want.

  Mr Woodward: They want a bit more than that, Chairman. They actually want to know that if they are going to invest 10, 20, 30, 100 million dollars, that actually this is not philanthropy but it is investment, and that is what fundamentally distinguishes the money that may be about to be invested in Northern Ireland from much of the money that has been invested in the past. Those in the past—and we should thank every single one of them—have often tended to be as much philanthropic as investors. What distinguishes the people coming this May is that the investment is investment, precisely because of the shared future and the commitments that every single politician in Northern Ireland has made to this new Assembly.

  Q13  Chairman: Of course, and we would all agree with that. The future must be assured and the transition must be smooth. I do not think there is any difference between any of us on that but I think there are just worries about the pace of this latest, last bit of devolution and my colleagues are merely seeking to ask questions on that.

  Mr Woodward: I recognise the pace but you said earlier, Chairman, 100% certainty. I do not think any of the moves that have been made in Northern Ireland, very bravely, by people have ever been in truth on 100% certainty. They have always been about an assessment of the risks and being prepared as an article of faith to move to the next stage. We will not ask people to do something that we would not do ourselves.

  Q14  Chairman: Of course not. I would like to move on a little because one of the things that has constantly come up with our investigations has been this issue of fuel smuggling. It is a crime—and it is a crime -that does have victims. There is a good deal of intimidation in the background to get people involved in it. Let me choose my words with great care and then bring in Rosie Cooper. There is a real perception that people are not caught often enough, are not pursued vigorously enough, and when they are punished, they are not punished heavily enough. I think that is the perception that this Committee has found some evidence to support. There have recently been articles in the press in Belfast following investigations through Freedom of Information and so on which would seem to bear that out to a degree. Would you like to comment on that?

  Mr Woodward: Would you like to ask your question first?

  Q15  Rosie Cooper: Sir Patrick has fundamentally asked quite a lot on the statements I was going to make. When we did the organised crime inquiry, there was some real fear on behalf of some of the people who gave evidence to us—and they were very brave but the overriding impression I was left with were people who were faced with smuggling, be it of petrol and cigarettes or whatever, and the inability or the acceptability of the powers that be to ignore that. In some of the press statements six years ago when there was a Customs crackdown, 15 people were convicted of fuel frauds; last year it was only four. So it goes on. If the Revenue just wishes to get some of their money back and does not treat it as seriously and does not want those people convicted and going to jail, what we are doing is we are condoning it; it is obvious to everybody in Northern Ireland that that is the case; and it makes it look as if it is a victimless crime. Criminals getting away with it is just not acceptable. There is a second part to that, which is, how does cross-border co-operation helped to reduce the amount of fuel going across the border? That does not take away one jot from the bit which is there is fuel in Northern Ireland and, by whatever means, the Revenue is not getting the money, those people are not being prosecuted, it is open crime season and it is not acceptable.

  Mr Woodward: I of course share the view of this Committee, as you said in your report, that there is no such thing as a victimless crime, and we too easily make this distinction that somehow there is a group of crimes for which there are victims—those who are raped or mugged—and those for which there are no victims because this is a financial crime of sorts. The loss to the Exchequer and the loss to public services in Northern Ireland is huge, so I entirely share the views of the Committee that this is a problem because it does have a victim. I also share the view of the Committee, again highlighted in your report, that it may seem astonishing that only 1% of those who are actually involved in this end up being convicted. I think it is probably worth remarking, as when you were doing your work on the Committee, that there is a way of judging this other than simply the numbers of convictions: the interruption of the business of fuel laundering, the closing down of the operation—that process of disruption to the criminal is equally important. There are two dimensions. One is that you want the laundering to stop and secondly, you want the people who are doing it put away. I would therefore say to you that this is a really difficult issue for us to address. It is particularly difficult in the context of Northern Ireland because of the border. I think of the proposals that the Committee put forward, the Danish example is an interesting one, as we said in our response to the Organised Crime Task Force investigation. It is something we should again review, and we plan to do it later on this year, because we should leave no stone unturned. We may have said some months ago that the Danish model would not be the right model for us and we have said we should continue to look at it, and we will look at it but I think it is important to balance convictions with disruption. I think it is important for us to constantly renew our efforts to try and tackle this and again, the Organised Crime Task Force is doing work on that and the work that the Minister of State, Paul Goggins is doing is extremely important but it would be a shame if we only judge it on the number of convictions. I think there is significant interruption and disruption to the criminals doing it but I do not for one moment sit here complacently saying that I think we are sufficiently on top of the issue. We clearly are not.

  Q16  Rosie Cooper: Can I ask you, Secretary of State, is there any political dividend for not prosecuting this as hard as you might?

  Mr Woodward: No, there is no political dividend in allowing any crime to happen. Condoning crime should never happen and it would be irresponsible in the extreme if anybody took a message from this that we in any shape or form condone it. We have to stop it and we have to do everything we can to stop it.

  Chairman: That is reassuring.

  Q17  Mr Anderson: Secretary of State, you said in response to Rosie Cooper that what we want to see is people put away. Our information is that actually, nobody has been put away for fuel laundering and fuel smuggling charges. There have been convictions but nobody has served any time whatsoever. Can you confirm that and is that not showing that there is no real disincentive for these people? Yes, you might disrupt them but it is not really a disincentive in what we have heard in evidence is a £380 million business.

  Mr Woodward: David, I share your view about this entirely and one of the issues I am looking at—and I cannot promise the Committee that there will in the end be such an offence—but one of the things I am very keen for us to look at is whether or not we might be able to create a specific offence of fuel laundering. That is going to involve quite a lot of work over the coming months and it may come to nothing. One of the problems, as you know, about seeking a conviction is that sometimes it is what you are trying to get a conviction for. One of the areas that I am anxious that we pursue while we have responsibility and continue to have responsibility for policing and criminal justice is to see whether or not we actually have all the means, both for the police and the criminal justice system, at their disposal to secure convictions of people involved in this. If it were the case that we could find a definition of fuel laundering as an offence which might allow us to actually secure more successful convictions—and I will say this all too readily—if I could replace the number of people who are serving sentences in prisons in Northern Ireland for fine defaulting with people who are fuel laundering, I think we would all be a lot happier.

  Q18  Mr Hepburn: If the Home Secretary were to turn round and say to all the burglars in the country "If you are caught, all you've got to do is give your stuff back", there would be anarchy. The impression that we get from our investigations in Northern Ireland on fuel smuggling is that Customs, once they catch somebody, after an in-depth investigation costing a lot of money and a lot of man hours, all they do is say, "Just give us some money back and you can go free." What sort of incentive is that to actually stop offending?

  Mr Woodward: I cannot really disagree with anything that you have just said, Stephen. I just remind you again that I am asking officials to look at whether or not we may be able to increase the means at the disposal of the police and the criminal justice system to actually put these people away.

  Chairman: I think we are to some degree encouraged by that and we would encourage you to be, to use the jargon, even more robust on this, because it is something that has troubled us all over a long period.

  Q19  Sammy Wilson: I hear the Secretary of State's assurances but over the last three years—these are your own figures that you have just given us—a 1% conviction rate. I would imagine for any other crime in the United Kingdom a 1% conviction rate would be regarded as fairly deplorable. I think Stephen Hepburn was wrong when he said that all they ever ask for is the money back. Only in a small minority of cases do they ask for money back and in three years, although it is reckoned smugglers may have netted £30 million, less than £500,000 has been asked for back when seizures have been made. There is a feeling within Her Majesty's Revenue and Customs by those officers who want to do something about it that you are happy enough to get a lorry but all of the names are known, the big players are known, the people who own petrol stations, and even the petrol stations which are owned by them which become the outlets are known. What I want to know, Secretary of State, is if you know the names of the big suppliers, if HMRC even know the names of the garages which they own and which they use to distribute this fuel from, if they know the lorries they use and the fact that they probably have 20,000 lorry journeys per year, why do we get such a paltry amount and why are the Mr Bigs immune from prosecution?

  Mr Woodward: Again, as you will know from your investigation, there has been, and indeed among some in HMRC, a view that 1% somehow represents a figure which is what are believed to be in the public interest in terms of the volume of prosecutions. I suspect there is not a single Member of this Committee would agree with that view and I think this Committee is very clearly suggesting this afternoon, as indeed it has done before, that you would like to see significantly more than 1% being successfully prosecuted.



 
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