I beg to move amendment 2, in clause 5, page 67, line 36, at end insert—

‘( ) Section 1171 of CTA 2010 (orders and regulations) does not apply to the power of the Treasury under subsection (3)(a).”

This amendment prevents a general provision about the procedure applicable to regulations under “the Corporation Tax Acts” (defined in the Interpretation Act 1978) from affecting regulations under Clause 5(3)(a). As is usual with orders or regulations bringing legislation into force, these regulations are not subject to parliamentary control.

The clause gives the Treasury the power to set the start date of the new regime through regulations before Northern Ireland can set its own rate of corporation tax. As the Committee knows, commencement of the regime will depend on the Northern Ireland Executive delivering on their commitments in the Stormont House agreement, which we have been discussing. The start date of the new regime will therefore depend on the Executive’s ability to demonstrate a sustainable plan for their finances. The earliest the regime can come into effect is April 2017. We hope it will come into effect on that date, but, first, the Executive must demonstrate that their finances are on a sustainable footing for the long-term.

As my right hon. Friend the Secretary of State for Northern Ireland said in the oral evidence session, the Treasury, the Northern Ireland Office and the Northern Ireland Executive will work out the exact criteria that will be applied to determine whether that is the case. Although the exact criteria have not been settled, it will be important to see a stable budget and a clear demonstration that the Executive are able to live within their means. It is important for discussions to continue on the arrangements for calculating the block grant and for that to be agreed ahead of 2017.

The recent agreement on a final draft budget for 2015-16 is a welcome development, as is the Executive’s commitment to reform the public sector and to take steps to ensure that their budget is sustainable for the longer term. They have shown that they have the determination to sort out their budget for 2015-16, and that there is strong political support for a reduction in corporation tax.

The 2017 start date, if met, will allow Her Majesty’s Revenue and Customs to update its systems for the new regime. Importantly, it will also give companies two years to prepare. Finally, it will allow for any necessary tweaks to the legislation to ensure that it functions as we intend when the new regime begins. The clause also includes provisions for companies whose accounting periods straddle the commencement date.

The amendment ensures that the clause has been drafted in line with normal practice for commencement powers that give the Government the power to turn on the legislation by regulations made by statutory instrument. It is a minor, technical amendment to ensure that the legislation does what it is intended to do and that there is no scope for misinterpretation.

Can the Minister assure us that there is no intention to use the power to switch on the legislation, which remains in the hands of the Government, to impose policy choices on the Executive? Some of us perceived strong-arm tactics being used in relation to welfare reform. The Assembly thought it could make certain choices, but now it cannot. Can he assure us that there is no plan to abuse the power relating to sustainable budgets and the Treasury’s judgment to enforce policy directions on the Executive?

I return to what I said a moment ago. There is certainly no intention to abuse the power. The intention is to ensure that the Stormont House agreement  is fulfilled, which requires the Northern Ireland Executive to ensure that their public finances are on a sustainable footing. That is the purpose, and I assure the hon. Gentleman that we will not abuse the power.

Just so it is on the record, does the Minister accept that that was not the interpretation of all parties in Northern Ireland? Indeed, the implementation of welfare reform was an essential part of balancing the budget, insofar as while it was not implemented, substantial moneys were going from the block grant back to the Treasury.

I am grateful for that intervention. I was attempting to address the general accusation of strong-arm tactics, and I have a lot of sympathy with what the hon. Gentleman has said. With those comments, I beg to move that the amendment be accepted and the clause stand part of the Bill.

I am grateful to the Minister for his explanation of the clause and the amendment. I will be brief. Everything he said highlights again that the onus is back on the political process that must now be undergone for the Northern Ireland Executive to show that they have put their finances on a sustainable footing. In the clause 1 stand part debate, I asked whether there was potential for the Minister, until this Bill completes all its stages in this House and the other place, to give an indication of the timetable we might be working to over the next year or year and a half or so. I did not catch an answer to it in his previous remarks. Will he return to that point?

First, I am grateful for the hon. Lady’s support for the clause and the amendment. All I can say at this point is that the earliest possible date of implementation, as set out in the Stormont House agreement, will be the financial year beginning 1 April 2017. As the agreement states, the powers will be commenced from April 2017, subject to the Executive demonstrating that their finances are on a sustainable footing for the long term, including successfully implementing measures in the agreement and subsequent reform measures. A moment ago, we nearly had a rerun of some of the debates in Northern Ireland on that matter.

Beyond what is set out in the Stormont House agreement —agreeing and delivering a final balanced budget for 2015-16 by January 2015 and the Welfare Reform Bill passing through consideration stage in the Assembly by the end of February 2015—the UK Government are working with the Northern Ireland Executive to agree further detail. I do not think I can set out any more information at this point, but we hope to make good progress on that.

I thank the Minister for accepting an intervention; it saves me from trying to make this point separately after he sits down. There is some concern, not just because of the experience on welfare reform, where the block grant was fined unless the Assembly passed a Bill that it otherwise would not have wanted to pass. Without going back to all that, will the Minister assure us that the judgment that is made on budget  sustainability in a couple of years’ time will not hinge on the Treasury saying to the Executive, for instance, “You do not have a sustainable budget unless you introduce water charges. You do not have a sustainable budget unless you introduce some other measure, or unless you raise revenue in another direction”? That is people’s concern in relation to the switch-on power—that the switching on will be withheld unless and until other things happen, a bit like the welfare reform experience.

Let me say this: my approach to looking at the finances of the Northern Ireland Executive as a whole, in their totality, is that they need to be on a sustainable footing. When it comes to public finances, whether in Northern Ireland or in the United Kingdom—public finances are the sum of its parts—this is a matter of looking at the totality of the public finances and the full context. I do not think I can say much more on that point. The hon. Member for East Antrim was in some respects making the point that it was credible to address the sustainability of the public finances of the Northern Ireland Executive only if welfare reform was included—that is the argument I think he would make and there is a lot to be said for it. Nevertheless, in terms of how the Treasury will view that in future, I would not go beyond the wording set out in the Stormont House agreement.

With those remarks, I commend the amendment to the Committee.

Amendment 2 agreed to.

Clause 5, as amended, ordered to stand part of the Bill.

Clause 6 ordered to stand part of the Bill.

On a point of order, Mrs Osborne. Before you put the final question to the Committee, I want to stand briefly to thank you for your guidance today and on Tuesday. I also thank Sir David Amess for his role. I know that his day in the sun was cruelly taken away and that he will feel a degree of emptiness next week. I must say that he conducted the Programming Sub-Committee with great dispatch: we completed it in approximately 60 seconds, so his service on this Bill was most efficient, as indeed has been the scrutiny today. I thank all Members for their participation. Although we have managed to progress more quickly than anticipated, the Bill has been properly probed. I am delighted by the support of the five parties represented today for the direction of the Bill; it is heartening.

I thank the usual channels: as always, my hon. Friend the Member for Croydon Central and the hon. Member for Scunthorpe managed to arrange matters in good spirit. I thank the hon. Member for Birmingham, Ladywood. Once again, our paths have crossed in a Bill Committee, as they have on numerous occasions over the course of the parliamentary year. So much for a zombie Parliament: I think we have done about five Bills between us. I also thank the Clerks, the Hansard reporters, the police and the attendants. I thank the officials from the Treasury, HMRC and the Northern Ireland Office, and I thank my hon. Friends the Members for Dartford and for Harrogate and Knaresborough, who passed inspiration to me as and when necessary.

I hope that the smooth progress made on the Bill can continue. The hon. Member for East Antrim, who has had much to do with this project in more than one capacity over many years, pointed out that it was important  to the people and parties of Northern Ireland that we get this legislation on to the statute book in the course of this Parliament. We have made a big step towards achieving that goal today, and I am delighted that we have done so. Some of us, particularly the hon. Gentleman and I, have been working on this matter for many years, so I am pleased that we have reached this point.

Further to that point of order, Mrs Osborne. I associate myself with the Minister’s remarks, particularly his thanks to you and Sir David Amess. I thought that his 60 second estimate was rather generous; the time we spent in the Programming Sub-Committee was considerably shorter, but that was entirely down to Sir David’s excellent chairmanship. Long may it continue.

I, too, thank the officials from the Treasury, HMRC and the Northern Ireland Office, as well as the Clerks,  the Doorkeepers, the police, Hansard, the Whips for keeping us all in line so very well, and Members from across the House. Although the debate has not taken up all the sittings allocated, it has been detailed and we have had high-quality contributions from Members from across the House. That is a sign of how important some of these issues are to not only Members with a direct interest but all of us who want both Northern Ireland and UK plc to succeed.

I also thank the Minister. He is right: so much for a zombie Parliament. He and I alone are keeping the legislative flame alive in this Parliament. I see more of him than I do many of the rest of my colleagues. I look forward to discussing the Bill further as it continues its passage through the House.

Bill, as amended, to be reported.

Committee rose.