Stephen Farry
North Down · Alliance Party · Northern Ireland
“Speaking for a party that has a longer pedigree in advocating a public inquiry than both the DUP and Sinn Féin, I nonetheless welcome this announcement, despite the torturous path that we have had and, indeed, the missed opportunities.”
“The first was a reform of the petition of concern to take it back to the original intent when it was designed in 1998. It was clear at that stage that Arlene Foster banged the table and said, "No, never. We are not doing that. That is a way whereby we are going to have to fold on equal marriage: it's not happening".”
“<BR /> <BR />The main points that I make concern the substance of the order. There are probably three aspects that the Minister needs to address properly before the Assembly, and they really relate to what other options he has.”
“That raises the question of why they want to go as far as 2022, especially when I am not sure — I would welcome any clarification to the contrary on it — that there has been formal Executive approval of this.”
“<BR /> <BR />There are three major substantive issues that I do not believe have been properly aired on this: VAT; European Commission infraction proceedings; and, most important, the opportunity foregone to revisit the classification of Northern Ireland Water and the ability, through a separate water charge, to allow it to borrow commerc…”
“While my party was supportive of the Good Friday Agreement back in 1998, at that time, we expressed some reservations around the very detailed nature of the proposals and how those could, in due course, destabilise Northern Ireland and prevent us from realising our full potential. We have been very much vindicated in that analysis.”
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“I thank the Member for giving way. Could he tell me under what trading scenario he envisages that there will be no rules and regulations? Does he recognise that, if he follows through on some of his party's policies on, say, immigration, he will be asking businesses to take on more regulations, such as checking people's right to work in the country?”
“Does the Member recognise — this is probably the key difference to arise in the debate — that, given the current WTO rules, we are more likely to see the opening up of different markets around the world, in the United States, Canada and China, if we are part of the single market. They are much more likely to do a deal with the European Union than with the UK in isolation.”
“Will the Member concede that it is perfectly possible for the UK to technically leave the European Union but remain part of the single market? That is, in essence, the so-called soft Brexit option advocated by the CBI. It may not be his preference, but it is entirely consistent for people to make that argument if they wish to do so.”
“That type of investment can continue, but access to markets is also a key consideration for investors. Corporation tax has the potential to be a game changer, but that is based on attracting profit centres to Northern Ireland, which are much more likely to want to have a base from which to sell to the single market. <BR /> <BR />At present, our investment context is characterised by risk and uncertainty, and it is important that people fully understand and recognise that. If we are serious about investment, we must recognise that it is not just about tax and talent, as is often said; it is about tax, talent and trade. The stakes for Northern Ireland at present are very high, and it is important that the Assembly takes the opportunity today to declare its full support for the single market.”
“This logic is even more acute in Northern Ireland, given our land border with an EU state and the nature of some of our business sectors, such as agri-food, which is, to a large extent, organised on a North/South basis. Agri-food is also a much bigger component of our economy and faces the additional hit of being confronted by the highest EU external tariffs, if we leave the single market. <BR /> <BR />It is also worth briefly considering our inward investment narrative. There is an air of complacency from some that, given Northern Ireland's recent strong track record and the onset of corporation tax powers, everything will be OK. However, our success to date — it has been a success — has predominantly been around attracting quality back office functions from US companies, and our skills base has been particularly helpful in that regard.”
“I am happy to clarify. The word "participate" is fairly clear and unambiguous: we want to be part of the single market, and that is our starting point. The notion of access to the single market is one step removed from that. If we talk about access to the single market, we accept that there will be some barriers, particularly in transactional costs and regulatory issues. Every time we take a step back, the implications for our exporters will become more severe. <BR /> <BR />It is clearly in the interests of the UK economy as a whole to maximise engagement with the single market. The business community is loud and clear in that regard, most recently in its warnings about the consequences of a hard Brexit. A hard Brexit would entail a drop in the UK's GPD and a major baseline correction in our overall wealth as a nation.”
“Different companies and sectors in the Northern Ireland economy will have different current and potential overseas markets, and there are dangers in extrapolating from outliers. We can all cite the good deals being done by company x and company y in the United States, which is to be welcomed, but let us look at the statistics and see where the bulk of our trade is going and will continue to go.”
“The level of tariffs is not the only barrier to trade. Transactional costs, regulatory matters and the policing of issues such as country of origin are just as important, and this is where specific free trade agreements — most importantly, the preference for a single market — become much more important. These complexities would not be addressed under WTO rules. The further we move away from the notion of a single market, the greater the impact of transactional costs and regulatory issues will be. All that red tape, which I believe the "Leave" campaign was seeking to get away from, will create more and more barriers for our exporters. <BR /> <BR />If we are serious about doing the best for Northern Ireland, we need to maximise our relationship with the single market and, ideally, be participants in it.”
“They are not the same, but many on the "Leave" side seem to think that they are.”
“It is essentially the global multilateral floor on which further progress on breaking down barriers can be built or on which more specific arrangements can be based. In theory, the UK can throw off its tariff walls to imports and hope that others will reciprocate in how UK exports are treated. It is not as straightforward in practice, as many states continue to seek to protect their domestic markets, particularly and notably for agricultural products and services. It is particularly naive to think that the UK can simply lower its tariffs and expect the EU to reciprocate. To do so, especially in the absence of acceptance of freedom of movement, would be to see the unpicking of the wider European project. We should also be clear that there is a difference between the concept of a single market, a customs union and a free trade zone.”
“The Transatlantic Trade and Investment Partnership (TTIP) is already in considerable difficulty, and even the proposed Canada-EU deal is creating controversy. Beyond our shores, we see difficulties with the Trans-Pacific Partnership (TPP) for the United States. Of course, bilateral deals can be struck, such as the Swiss deal with China that has often been cited. Worryingly, however, that one was concluded very much on China's terms. If you want simply to surrender to the terms of other countries that wish to trade with us, of course we can do all these deals, but it is not necessarily in our interests to do so. <BR /> <BR />It is also worth reflecting for a moment on what the term "WTO rules" entails.”
“While that gap may be narrowing, it is nevertheless considerable. It would be foolish in the extreme to make it more difficult for Northern Ireland companies to access what is still by far their largest non-UK market. <BR /> <BR />Moreover, Europe versus the rest of the world was never an either/or choice, rather a both/and. The European Union is better placed to create new free trade agreements with other parts of the world than the UK going alone. The UK is no more likely to participate in a free trade agreement with the United States, Canada or China by going it alone than by going through the European Union. Such deals often take years to negotiate and are rarely straightforward.”
“<BR /> <BR />Before the Brexit vote, there was a rather warped narrative that there was somehow a choice to be made between trading with the European Union and accessing the rest of the world. No doubt we will hear that reinforced today by some of the apologists for the "Leave" campaign in the Chamber, who will argue that the proportion of Northern Ireland exports to the Republic of Ireland and the rest of the European Union has declined and the proportion of our exports to the United States and the rest of the world is increasing and that, ergo, our future prosperity lies outside the European Union. That neglects to consider that the gap between the level of exports to Ireland and the rest of Europe, whether we are talking about services, manufactured products or agrifood, is still significantly ahead of the rest of the world.”
“<BR /> <BR />There are a number of scenarios when it comes to trading relationships. They range from some form of special status or special arrangement that allows us to continue to be part of the European Union through to Northern Ireland alone or the UK as a whole continuing to be part of the EU single market, passing through some form of access to single market akin to the Norwegian model or the less advantageous Swiss model, with the backstop of the World Trade Organization (WTO) rules. Over recent days and weeks, there has been a lot of talk about WTO rules from Conservative Ministers and from some former and current unionist politicians. That has received a strong rebuke from UK-wide employer organisations such as the CBI, which should know.”
“<BR /> <BR />Recent export growth has reflected some microeconomic interventions around skills, innovation and the building-up of capacity among local companies. Over the past few months, there has been a short-term boost due to the radical changes in the value of the pound in the aftermath of the Brexit vote. However, cheaper exports are balanced by more expensive imports for manufacturers and consumers. The drop in the value of the pound also reflects a drop in the value of the overall UK economy. Even the companies benefiting from the currency changes would accept that volatility in exchange rates is not healthy and that an economy cannot be truly prosperous unless it is based on strong and solid foundations. Therefore, the key issue for expanding our export base is accessibility to markets.”
“We also concur that exports should continue to be a core element of Northern Ireland's economic strategy. <BR /> <BR />In some regards, the Brexit decision is especially frustrating at a time when the peace process is well embedded and the Northern Ireland economy is addressing some structural reforms and really has the potential to take off and see real results. We are dragging ourselves down at a time when we are really about to lift off. Our amendment gives the Assembly the opportunity to declare unequivocally that continued participation in the EU single market is one of the most important aspects, if not the most important aspect, of what makes the Northern Ireland economy competitive today and would maximise our competitiveness in the future.”
“It will not be lost that Mr Lyons did not give his support to the first amendment and did not take the opportunity to give his full support to the single market. I think that the business community, here in Northern Ireland and across the UK, will take note of that. The fortunate opportunity for the DUP in the House to unite around that does seem to have been missed. Hopefully, they will reconsider as we go along. <BR /> <BR />At the outset, we can concur that exports are a good thing. Export-led growth is a key route through which we can transform our economy, drive up skills and productivity and enhance prosperity. There has been some recent improvement in that regard, though we may dispute some of the underlying explanations of that.”
“We can make our resources stretch that bit further in investing in public services and our infrastructure.”
“<BR /> <BR />My final point is that there are issues in other parts of government where the way that ONS works and how we treat parts of the public sector allow or constrain the ability to borrow and raise money. I encourage the Executive to have a wider look across the piece in that regard. In doing so, we may find, particularly in these very straitened economic times, that there are resources available to us without having to raise revenue directly from the hard-pressed householders across Northern Ireland.”
“For better or worse, this is the only opportunity that the Assembly has had to discuss the issues. If we had what should have been the process in the Chamber of a ministerial statement, we could have done this in a much more structured way, akin to what is happening in Cardiff and Edinburgh, which have shown the way forward in that regard. Lest the current Minister thinks that we are picking on him, although this is the current example, it is a trend across the board. He is not the only one who is falling into the situation of not having the proper mechanisms of accountability. We are having the debate today, and we are able to raise the issues of process and the substance.”
“In concurring with my colleague, I also recall many instances on which the DUP and Sinn Féin, as the two parties of government, did exactly the same thing with motions that had to be tabled where the circumstances had moved on after the original tabling of the motion. It also shows that —”
“Thank you. It is not silly in the slightest. It goes to the heart of the debate. There is, as there should be, a duty on Ministers in the ministerial code — they should follow through on it — to be open around decisions. There is clearly precedent in other jurisdictions that, where there are matters of major public interest, a Minister is proactive in bringing information forward and having scrutiny. When I was the Minister, I did it routinely, as did others.”
“It is an important issue that goes to the heart of the resources available to us and what we can do to make a difference.”
“<BR /> <BR />It is not just a matter of us receiving the information as poor MLAs in the Opposition parties; this is something that actually affects the public of Northern Ireland, who have an interest in hearing what is being said as well. That is the case in particular for the housing associations and our wider policy objectives of being able to make sure the resources available in Northern Ireland can be stretched to their maximum outcome. Obviously, the reclassification potential will severely curtail that in many respects. <BR /> <BR />A lot of this could have been avoided if the Minister had been proactive in bringing a statement to the Assembly. That, in turn, allows MLAs, on behalf of their constituents, to pose questions to the Minister. I hope that we can avoid this situation in future.”
“<BR /> <BR />I want to make a number of brief comments on this situation. The key issue of debate that has emerged in the Chamber today is on process and how the Opposition are somehow out of order in bringing up something that the Executive, in their infinite wisdom, are on top of. Almost building upon the theme of last week's business, we are again seeing the problems in openness and transparency in what the Executive are doing. It is almost as though we have a privilege in sometimes being told what the Executive are actually up to. We should have open and transparent government where decisions are explained, questions are answered on time and Ministers are proactive in bringing information to the Assembly rather than putting the onus on everyone else to go around and find out.”
“I will pick up from Mr Beggs on further education to say that there is no clamour in the FE sector for a reclassification away from being a non-departmental public body. The situation for FE in Northern Ireland is much healthier than in England where there have been quite significant funding cuts, which have been cut out from a lot of the narrative on investment in skills and education. Consideration was given to a potential public consultation on changing the governance for FE to allow ONS to reclassify it away from NDPBs. In light of our own difficulties with budgets and the fact that the Executive put in place end-year flexibility that allowed surpluses to be transferred from one year to another, there is now consensus that the status quo is the best way forward. So that is not an appropriate line to go down.”
“It is not good enough to see the great powers intervening on different sides of the conflict and it becoming a kind of proxy war. Russia in particular stands out for international condemnation for its activities, namely the military support that it provides to the regime and its bolstering and protecting of Bashar al-Assad. Frankly, if that support were withdrawn there may be some hope of a solution. <BR /> <BR />I fear that, at present, we are seeing a rolling stalemate centred around the city of Aleppo, and that is likely to continue unless we see a change in tack from the international community. What is needed is a genuinely united front and a recognition that the international community has a formal responsibility to protect, and to recognise that what happens within national borders is something that concerns us all.”
“Aleppo is one of the oldest inhabited settlements in the world, and what is happening there is a tragedy in so many respects. It also reflects the much wider situation in Syria. As an Assembly, it is important that we speak out on what is happening beyond our borders. What is happening today in Syria is, I think, the defining conflict of our age. We should be defined by how we, as the international community, respond to that situation. It is important that we see humanitarian assistance and that we join in recognising the aid workers who risk their lives to bring assistance, and in particular the role played by the white helmets in trying to save and rescue lives. <BR /> <BR />We also have to recognise that it is not just about humanitarian aid and that we have wider responsibilities as an international community.”
“The difference between those battles and the situation today is that so many civilians are bearing the brunt of the conflict; they are suffering daily, losing their lives, their homes, their livelihoods and their future.”
“I also thank Mr Attwood for bringing this important Matter of the Day to the Assembly. At the outset, I also make reference to the humanitarian situation in Haiti due to Hurricane Matthew and recognise the hundreds of people who have lost their life there and the thousands who are now homeless. <BR /> <BR />In some respects, we have a man-made hurricane affecting the people of Aleppo. Given our history and the fact that this year we mark the 100th anniversary of a number of major battles in the First World War, such as the Somme and Verdun, we know the consequences when a long-term stalemate builds up.”
“I want to add to the list that my colleague Gordon Dunne very wisely mentioned: the junction at the turn-off into the Kinnegar area in Holywood is also very dangerous. Is the Minister prepared to consider the long-term future of the Rathgael Road in Bangor, which is a feeder onto the A2 dual carriageway? It is an extremely busy road. Technically, it is a rural road, but it has seen massive housing developments in recent years and, indeed, is a feeder for the outer edge of Bangor onto that road. Can we manage the traffic in that area better?”
“I am thankful to the Member for giving way. If the DUP wants to use Westminster as its benchmark, does Mr Swann agree that, in Westminster, it would not be tolerated if papers were late for Committees, Ministers were not showing up frequently and announcements were being made by press release as opposed to on the Floor of the House of Commons, where Back-Bench MPs can hold Ministers to account?”
“<BR /> <BR />The issues that are addressed by the social investment fund are not unique or new but are things that could have been addressed in the past by my Department — the Department for Employment and Learning — and the Department for Social Development through proper procurement measures, which can engage with the community and voluntary sector. When we end up bypassing those procedures, a whole range of risks are being borne by government, and we are just seeing the tip of the iceberg in that regard.”
“The fund seems to exist as a means to bypass the normal purposes of distributing and of how government engages with the community sector and delivers on employability and deprivation issues. The attempt seems to be to direct funding to particular favoured organisations. It has been dogged by delays and controversies, and, in particular, the recent announcement in regard to east Belfast sends out a terrible message in the aftermath of the Fresh Start commitments on addressing paramilitarism. Perhaps we might be better off if the social investment fund were wound up, with the money being invested in our health service.”
“Concerns have been expressed at the decision-making process, including consideration of value for money and opportunity costs, related to the subsidy to United Airlines and also the financial support to the City of Derry Airport. Perhaps the most serious example in this regard was the decision of a Sinn Féin Minister to relocate DARD, now DAERA, to Ballykelly without a business case. This actually cost more than the status quo and does create major questions around business continuity. The dawning that this project is in difficulty reflects the dangers of not fully exploring all of the risks through a business case. <BR /> <BR />I will finish with the issue of the social investment fund (SIF), which is a walking recipe for bad governance.”
“<BR /> <BR />Drilling down into Budget changes also becomes more difficult when we look at the issue around monitoring rounds, and what happened in June is a lesson that we have to avoid. There was a lack of detail from the Finance Minister, and, indeed, a lack of engagement more generally with Committees. The Public Accounts Committee is now doing its job in trying to get to the bottom of the ongoing problems arising from the Department of Enterprise, Trade and Investment's black hole on public finances. <BR /> <BR />We also have a growing culture of major financial decisions being taken without approval of a proper business case. I do accept that there are some cases where ministerial directions are appropriate, but that argument becomes weaker when the scale of resources increases.”
“<BR /> <BR />Poor governance extends more widely to the nature of the Budget process. The Budget for this financial year was presented to Ministers outside the two lead parties with 20 minutes before it was actually adopted. To be clear, I am not talking about the draft Budget but the actual final Budget. The Executive may well have been facing an incredibly tight schedule that was not of their making, but there was still space for some structured engagement with key stakeholders. There was an air of getting the matter out of the way in order to progress the DUP leadership transition. We are now facing a similar situation for the next financial year. Even with the tight timescale arising from the autumn statement, lessons need to be learnt from last year. However, the indications are not encouraging.”
“Another case of secrecy that risks becoming counterproductive is the way in which the Health Minister is currently sitting on the Bengoa report. This report was commissioned by the previous Minister, with a key desire to build a cross-party consensus on a generational change in Health and Social Care, and all of the main parties were engaged and consulted in the development of the proposals. This report has been with the Minister since the start of the summer, and there seems to be no intention of publishing it until the Department has agreed its own response. This approach strikes me as missing an opportunity to continue the informed debate and to build consensus, particularly given the current state of the health service and what is at stake with public finances.”
“I congratulate Mr Stalford on a very successful intervention.”
“I stress that this is spontaneous coordination across the opposition.”
“Indeed, that is the point. I made numerous statements to the Assembly, to the point where the Chair of my Committee was almost frowning at the number of times he was forced to come in to receive and listen to them.”
“Yet, some Ministers, from a range of parties, have proven in the past that it is possible to respect deadlines around FOI requests and questions; those Ministers include David Ford and me. <BR /> <BR />In terms of Ministers offering themselves for accountability, we also see a reluctance to make major announcements in the form of ministerial statements to the Assembly, so providing Members with the opportunity to question.”
“The processing of FOI requests is governed by statute, and compliance is not supposed to fit in around political convenience. This is not an isolated example. The response rate of OFMDFM, in particular, to FOI deadlines is appalling. Of course, it is conceivable that they have used the royal prerogative to change the freedom of information legislation to exempt themselves from this requirement and just have not told us. <BR /> <BR />The pattern of no respect for compliance with FOI deadlines is replicated in the time taken to answer questions. The protocols governing the timescales for responses are readily flouted with impunity. Again, some Departments and Ministers are serial offenders, with — surprise, surprise — OFMDFM, now the Executive Office, as the worst offender.”
“The issues at stake here are not just criminal; they also relate to the degree of due diligence around public appointments and the approach to decision-making within Stormont Castle. <BR /> <BR />Also in the news this past week was the failure of the First Minister (FM) and deputy First Minister (DFM) to disclose in a timely manner the document on the implications of Brexit, prepared by their civil servants almost a year before the referendum. A lot has been said about this in public, but one particularly troubling aspect is that it took a freedom of information (FOI) request to produce it. The FOI request was tabled in February, and while most normal public bodies would take regard of their duties to produce documentation within 20 working days, it was only released on the rather convenient day after the referendum.”
“Before the opponents of the motion start to engage in "whataboutery", in terms of what other parties have done, let me be clear that the issue at stake is not that the Executive chose to headhunt somebody, let alone that that person is David Gordon. Rather, the concerns are that the First Minister and deputy First Minister thought that it was appropriate to use the royal prerogative in an area already covered by legislation and did not use one of the already generous special adviser allowances to accommodate the post, which happens in other jurisdictions. <BR /> <BR />Turning to the National Asset Management Agency (NAMA) scandal, it is a matter of some bewilderment that the DUP and Sinn Féin chose to close ranks to water down what would have been a more far-reaching motion in the Assembly.”
“<BR /> <BR />Good governance, including effective scrutiny, lends itself to better value for money and maximises the best use of resources, allowing more to be done in terms of investing in the key drivers of our economy or expanding public services. Indeed, there is a persistent trend of DUP and Sinn Féin MLAs on Assembly Committees being reluctant to countenance scrutiny of their own Ministers. This has had a particular effect on the Committee for the Executive Office and its predecessor, the Committee for OFMDFM, as a majority of members come from the ministerial parties. <BR /> <BR />There are numerous examples of decisions or the handling of issues that give substance to this motion. Let us take, for example, the appointment of the Executive press secretary.”
“I suspect that those today who will seek to defend the Executive will claim that their antics are little different from what happens in other Governments. So let us be clear: what is happening here is at the extreme end of the spectrum of what is supposed to pass for democratic government. <BR /> <BR />We often hear the mantra, "We won the election", but democracy means more than just majority voting. It about good governance, human rights and the rule of law. Others may dismiss this debate as part of the Stormont bubble, but this stuff really matters in terms of the nature and quality of outcomes for the people of Northern Ireland.”
“The motion provides an opportunity to make clear the growing unease at matters around openness, transparency and accountability on the part of the Northern Ireland Executive. We have deliberately kept the motion on a high-level basis to allow for a free-flowing and wide-ranging debate. We have consciously tried to avoid getting bogged down in any particular remedies as such, but have no difficulty with either of the proposed amendments. However, it is important that we highlight a range of issues in the debate. <BR /> <BR />Over the past few months, we have seen numerous breaches of what should be the accepted standards of good governance, including disregard for Assembly processes, unnecessary secrecy, control freakery and cronyism, to name just a few.”
“Is it the single market? Is it the Norwegian model? Is it WTO rules? Is it something else? What is her view on the best way forward for a trading regime for the local sector?”
“In light of the very particular characteristics of the Northern Ireland market, such as the number of businesses that conduct their activities on a North/South basis and the scale in our economy relative to other places, what is the Minister's assessment of the best model for Northern Ireland agri-food's future trading arrangements?”