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Budget (Northern Ireland) Order 2007

My Lords, I begin by thanking noble Lords for welcoming me back to Grand Committee and to Northern Ireland business. I confess that when it became clear that I would have to do some Northern Ireland business, I said to my noble friend Lord Rooker, ““As long as I don’t have to do the Northern Ireland Budget””. But here I am. Clearly, it was intended that I should be here. I should say to noble Lords—particularly to the noble Lord, Lord Shutt, who raised a number of the issues he mentioned when I replied to this Committee many years ago—that it was quite a delight to hear the same issues coming up again. Like the noble Lord, Lord Glentoran, I hope that this is the last time we debate the Northern Ireland Budget. We all hope that the process of devolution will proceed. I also join noble Lords in noting the absence of the noble Lord, Lord Laird. He always brings what I can only describe as a colourful dimension to our proceedings. I certainly miss him. If I may, I should like to run through the various points that have been raised, starting with the general points on the economy raised by the noble Lord, Lord Glentoran. He is correct to say that Northern Ireland’s unemployment is at a record low and well below the UK average. Employment is also increasing rapidly, particularly in the services sector. In terms of skills development, that remains an area of concern to some. I note the noble Lord’s comments on the local housing market. As he will know from discussions today about the housing market particularly in London, it is not a unique problem. However, a significant housing affordability review is under way. The affordability review is considering the barriers affecting those seeking affordable housing in the owner-occupied and the social and private rented sectors. An interim report has just been produced for consultation. Following the consultation period, final recommendations will be presented to the Government in the spring. The noble Lord, Lord Trimble, raised wider Budget issues regarding the various requests for additional funding in Northern Ireland. It would be a much braver person than I who responded in detail on that matter. This is a time when the budgets of all government departments and wider public sector bodies are facing pressure as a result of wider economic conditions. I am absolutely certain that that will be one of the things that the Chancellor bears in mind. The current package presented by the Chancellor offers a stable and robust base on which an incoming Executive can develop priorities and associated spending plans. That remains our view. On the point made by the noble Lord, Lord Glentoran, on the scale of public sector employment in Northern Ireland, the noble Lord is of course right that the key issue is to increase private sector employment. It is important to point out that the level of public sector employment in Northern Ireland is high when it is expressed as a percentage of the total number of those employed. If, however, you look at it as a percentage of the total population, it is actually exactly the same as elsewhere in the United Kingdom, because you need certain levels of nurses, teachers and others. The noble Lords, Lord Glentoran and Lord Maginnis, who is briefly not in his place, mentioned the review of public administration, which covers local government, education and the major health and social services bodies, including the remaining Executive agencies and public bodies. Under the current timetable, by 1 April this year, five new health and social services trusts will replace 18 existing trusts. By 1 April next year, a new health and social services authority will replace four existing health and social services boards. A new patient and client care council will replace the existing four health and social services councils, and a new education and skills authority will replace the five education and library boards. A new library authority will also be operational. By 1 April 2009, seven new councils will replace the existing 26 councils. The noble Lord, Lord Maginnis, suggested that the number should be 15 or 16. I talked earlier about a braver person than I am, and I must use the same words again: a braver person than I am would reopen the debate on local government configuration, which has already been decided. The decisions arising from the review of public administration in relation to local government are designed to strengthen the role of local government in Northern Ireland and place it at the heart of local democracy. The Local Government Task Force, which is chaired by my honourable friend David Cairns, continues to provide the vehicle for the direct engagement of local government representatives in strengthening local democracy in Northern Ireland. Moreover, members will have direct input throughout the implementation phase. So although the debate on the number of councils is not open to discussion, there will be an opportunity to have input in how the seven councils are implemented. The noble Lords, Lord Glentoran and Lord Shutt, and the noble Baroness, Lady Harris, mentioned schools. In answer to the noble Baroness, I do not know whether one unitary authority was considered, but I am happy to write to her if I find out any more about it. On rationalisation, on 23 January the Department of Education published a consultation document, called A Policy for Sustainable Schools. The policy is based on the Bain review recommendation, including its minimum thresholds for urban and rural primary schools, post-primary schools and sixth forms. Its objective is to ensure that all children have access to high-quality education in fit-for-purpose facilities. The closing date for responses to the consultation document is 16 April 2007. The Bain review recommended that schools under the minimum enrolment threshold should be reviewed to ensure that they are providing children with the education they need and will continue to need in the future. The fundamental issue is quality of education. Of course, reviews must be handled carefully and sensitively, and the review will need time to be completed and will require engagement with the relevant education authorities. The Bain review did not identify a level of savings at this stage. The noble Lord, Lord Shutt, talked about integrated schools. The figures quoted reflect the fact that there has been a re-profiling of integrated schools provision. The money has not been taken away from the integrated sector; it has been re-profiled—a rather difficult word—to specific projects. I shall give some examples of what that re-profiling involves. This year, for example, the Government have allocated £25 million for new capital development in integrated schools. On top of that, additional money will be put into supporting the ongoing running costs of integrated schools, and proposals for new integrated schools are under consideration. For example, the Minister for Education recently decided upon two development proposals for the establishment of new integrated schools. Almost every time the noble Lord, Lord Glentoran, speaks on these budgetary and resource issues, he raises the issue of consultants. Following the publication of the Northern Ireland Audit Office report on the use of consultants in June 2004, the DFP issued revised guidance on the use of external consultants in February 2005, outlining a number of lessons contained in the report that could be applied across all departments to ensure that value for money was obtained when employing consultants. External consultants are currently being used on a number of key government reforms: the review of public administration and the water reform I have already mentioned, and NICS-wide reforms such as accounting systems, human resources and accommodation. They are also used on a range of major projects, including the new sports stadium at the Maze and on private finance initiatives. The noble Lord, Lord Shutt, raised the question of the civic forum. The Office of the First and Deputy First Minister has made financial provision in the vote on account for 2007-08 for the civic forum being restored should devolution return. On railways, an issue which the noble Lord has raised in the past, the north-west railway link has sufficient resources to maintain existing services but, given the recent British-Irish Intergovernmental Council oversight report which acknowledged its strategic importance, a review is under way. The north-west clearly has great potential for tourism and that must be exploited. Translink plan to upgrade the track on the railway line between Ballymena and Londonderry. The work is intended to commence late this year, with an expected duration of two years. On Ulster Savings and the use of money in closed accounts, another issue raised by the noble Lord, Lord Shutt, the outstanding Ulster Savings scheme liability is held within the Consolidated Fund on behalf of investors. It now stands at some £6.6 million. Payments are made on receipt of a valid certificate. The accounts are therefore considered closed as opposed to dormant. The £6.6 million remains liable for repayment. The Treasury plans to bring forward legislation on dormant bank and building society accounts on a UK-wide basis. It will not apply in the case of Ulster Savings, however, because those accounts are viewed as closed rather than dormant. The potential of the legislation on dormant accounts is to fund the community and voluntary sector, including in Northern Ireland. The noble Lord looks as though he wants to come back.