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Rates (Amendment) (Northern Ireland) Order 2006

I, too, thank the Minister for introducing this order. I shall start by agreeing with him that most people in the Province agree that the rating system in Northern Ireland was in need of reform. We share the aim of the order, which is to make the rating system in Northern Ireland fair and more understandable. However, I, like most people in Northern Ireland, feel that that has not been achieved by it. I shall mention several areas of concern. There are inconsistencies between the order and the law as it applies in England and Wales. I should declare an interest as I live in Notting Hill. I have lived there for 20-odd years. Unfortunately, it is not Notting Hill in London. If I lived in Notting Hill in London, I would be paying rates of about £3,000, but, because I live in Notting Hill in Northern Ireland, my rates will be upwards of £6,000. Capping rates is acceptable in England and Wales, but it was not acceptable in Northern Ireland in September. Now, in October, it is now apparently acceptable. What has changed to make it acceptable now when it was not acceptable a month ago? I do not believe that I heard the Minister correctly. I am sure that I got him wrong when I heard him say that it was changed as a punishment for the electorate for non-agreement with the politicians. However, I shall be positive for a minute. Following the so-called St Andrews agreement, we are now told that the Government are looking at a cap of about £3,000, which is positive. But, surely, we need more details? Why put the cap at the maximum level for England? Why would it not be more appropriate for it to be at the slightly lower maximum figure for Wales, an area that is more similar to Northern Ireland in per capita- income terms? There is another inconsistency. As the noble Lord, Lord Glentoran, has said, many households in Northern Ireland are asset rich and cash poor. I agree with him. We are not speaking about large farmers or landholders. In many cases, we are speaking of old-age pensioners, people who bought their houses some 20 years ago, widows and widowers—people whose assets have increased but whose income has, unfortunately, not increased proportionately to pay these rates. There is a clear case for a single-occupancy and pensioners’ discount in the Northern Ireland system. Again, this applies in England. Surely Northern Ireland ratepayers should not be denied this relief. The Minister has argued that the new rates system represents a win for most Northern Ireland property owners: 55 per cent are the same or better off, and only 45 per cent are worse off. I ask him to clarify whether the 55 per cent he speaks of is inclusive of those who were already not paying any rates because of housing benefits. The Minister said that the new system is revenue neutral. Surely that is inconsistent with the Government’s policy of increasing revenue from rates in future.