---

Rates (Amendment) (Northern Ireland) Order 2006

The Minister is going to hear more of the same from these Benches, which gives me no pleasure. Nevertheless, I thank him for introducing the order. In the press and in background publications, the Government have talked about the introduction of a fairer system of rates for Northern Ireland. While we agree that the current system needs to be reformed, we object to the proposals in the order. The proposed system is blatantly not fair; in fact, it is grossly unfair. The Secretary of State has made comparisons with England and Wales, but such comparisons have little relevance because they operate on a different local taxation system and the structure of the cost of living is different from Northern Ireland. However, if we want to go down that route, the Minister will find that the average Northern Ireland household income is19 per cent lower than that in the UK, that more Northern Ireland households—21 per cent—rely on benefits than in the UK overall, where the average is 12 per cent, and that Northern Ireland households pay 26 per cent more for fuel, light and power than the rest of the UK. A major concern that has arisen in government consultations on this issue is that the scheme does not take into account a person’s ability to pay. We have heard from the noble Lord, Lord Glentoran, about property prices in Northern Ireland. Indeed, they are rocketing. A recent Belfast Telegraph article reported that house prices are rising at a rate of £110 a day, compared with a rise of just £30 a day—which is still enough—in the rest of the UK. The Nationwide house price survey for the third quarter of this year showed the average price of a house in Northern Ireland to be £159,859, which is a 33.4 per cent increase on last year. The average price of a house in Belfast is at an all-time high of £204,816, which is a 24 per cent rise in the past 12 months. In such circumstances, a person who bought his house 10 or 20 years ago, when property prices in Northern Ireland were significantly lower, is likely to find himself with a huge increase in his rates payments, which he may not necessarily be able to afford to pay, especially if he is on a fixed income. As we have already heard, pensioners are extremely worried about their ability to afford the new rates, and the public response to the consultation carried out in 2004 contained many stories from pensioners or people approaching retirement who were extremely worried that their houses are now worth considerably more than they were when they were bought. Because such people are now retired and their incomes are fixed, they will find it extremely difficult to pay the increased rates. A large proportion of those who face rate bills that top £3,000 will be older people who have retired from work. Massive extra bills will create havoc for those who have to pay them and for those who have to collect them, as larger numbers of people may not be able to afford to pay. Those older people worked hard throughout their careers to pay for their home, and they retired safe in the knowledge that they had paid off their mortgage and their financial situation was sound. It is not so any more. With rate bills of more than £3,000 falling on their doormats, they now face a situation in which they own their home but cannot afford to live in it. This situation is potentially catastrophic for them. Furthermore, punitive rates will hit the economy hard by reducing disposable incomes in Northern Ireland. The Minister will not be surprised to hear me ask what consideration was given to the introduction of a regional income tax based on a person’s ability to pay, rather than on the value of his home. The Secretary of State has spoken about a cap on rates, and there has been some discussion of rate relief for pensioners, but neither of those proposals is in the order that we are looking at today. There is provision in the order for a rate relief scheme, and such a scheme is to come forward in regulations, if the department decides to bring forward such regulations at all, but what chance will Parliament have to debate and discuss such a scheme? Who will qualify for it? It is unacceptable for the Government to ask the Committee to consent to this order without the details of the scheme being in place. However, our concerns are about not just the content of the order, but also why it has been brought forward at this time. The Minister sought to explain the Government’s position on that. The Secretary of State made a Statement in the House only a week and a half ago that heralded the agreement at St Andrews as opening a way to a new dawn for democracy in Northern Ireland. We welcomed that Statement and congratulated the Government on the work that they had done to achieve such an accord. However,24 November is now less than a month away and, as the noble Lord, Lord Glentoran, asked, is this legislation so vital that it must be pushed through Parliament at this time? If the Government were to wait until after 24 November, we would know whether the Assembly will be restored. If it is restored, would it not be better for local politicians, who are accountable to the people of Northern Ireland, to introduce a rate system that they feel best suits the needs of Northern Ireland? Indeed, the parties have been asked to respond to the St Andrews agreement by 10 November, which is only two and a half weeks away. By then, we should know whether there is a clear indication that a First Ministerand Deputy First Minister will be nominated on24 November. How can the Government say that this legislation must be pushed through today, before we have a clear indication of the prospect of devolution, when this process has been on-going since May 2000? The process of rates reform was begun by the Northern Ireland Assembly. It should be concluded by the Northern Ireland Assembly. It should not be pushed through Westminster when there is a real chance that the politicians of Northern Ireland, who have been elected to take decisions on issues such as this, will be exercising power—as we hope—in the Assembly within a matter of weeks.