Stormont

Part of Backbench Business — [2nd Allotted Day] – in the House of Commons at 9:14 pm on 12 October 2015.

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Photo of Mark Durkan Mark Durkan Social Democratic and Labour Party, Foyle 9:14, 12 October 2015

In following David Simpson, I will respond to his challenge to my party, but I do not want to respond only to the issue of welfare reform and the challenges in the devolved budget resulting from the Treasury’s budget bullying tactics. The Treasury is imposing a fine on the block grant that is given to the Northern Ireland Executive under the Barnett formula. It adopted that tactic because it thought that creating budget stress for the Assembly would force through welfare reform, but that budget stress became a budget crisis, and that in turn is feeding a political crisis.

The Treasury needs to take a different course. I ask hon. Members to contemplate what would happen if the British Government decided to introduce a provision in the Scotland Bill that would require any disagreement between Ministers in London and Edinburgh on welfare issues in Scotland to be resolved according to the terms they are using in Northern Ireland. How would those on the Treasury Bench react if some of us proposed a new Clause that would specifically forbid the Treasury ever doing in Scotland what it is now doing in Northern Ireland: using budget interference to impose a different view of welfare reform?

Although the scheme for devolution set out in the Scotland Bill is different from the notional legislative devolution that Northern Ireland has, the fact is that there is a scheme for devolution there, and it requires and presumes, by the nature of the legislation, agreement between Ministers, but there is no provision for when there is disagreement. It certainly would not work if Scotland was to be treated in the way Northern Ireland has been treated. Therefore, if the Treasury would not treat Scotland that way in relation to the future of devolution and welfare, it should not treat Northern Ireland that way now.

Barnett formula

An economic mechanism used by the Treasury to adjust automatically the amounts of public expenditure allocated to Northern Ireland, Scotland and Wales, to reflect changes in spending levels allocated to public services in England, England and Wales or Great Britain as a whole.

See http://en.wikipedia.org/wiki/Barnett_formula

clause

A parliamentary bill is divided into sections called clauses.

Printed in the margin next to each clause is a brief explanatory `side-note' giving details of what the effect of the clause will be.

During the committee stage of a bill, MPs examine these clauses in detail and may introduce new clauses of their own or table amendments to the existing clauses.

When a bill becomes an Act of Parliament, clauses become known as sections.