I beg to move, That the Bill be now read a Second time.
The Bill gives effect to key elements of the fresh start agreement of 2015 and the Stormont House agreement of 2014. It is an important stage in the implementation of those agreements, which, taken together, have the potential to help us to secure a more peaceful, stable and prosperous future for Northern Ireland.
Before turning to the detail of the clauses, I will remind the House of the background to their contents. As the House will recall, following just over 10 weeks of intensive talks, the Government, the Northern Ireland Executive parties and the Irish Government reached the Stormont House agreement on 23 December 2014. It addressed many of the most significant challenges facing Northern Ireland. Some of those challenges, such as the long-standing disagreements over flags, parading and the past, were deeply damaging to political relationships within the devolved Executive and were fuelling community divisions. Others, particularly the state of the Executive’s finances and disagreements over welfare reform, were jeopardising the effectiveness and sustainability of devolution itself.
The Stormont House agreement included proposals to give the Executive a workable and sustainable budget; to set a path towards resolving contentious issues around flags, symbols and parading; to establish new bodies to help to tackle the legacy of Northern Ireland’s past; and to deliver reforms at Stormont to make devolution work better. All of that was underpinned by a financial package that gave the Executive about £2 billion of extra spending power.
The Stormont House agreement was and remains a good deal for Northern Ireland. However, by last summer, it was clear that implementation had stalled. That was largely due to disagreements in the Executive over the budget and finances, at the heart of which was the decision by the nationalist parties to withdraw their support for the welfare reform package agreed at Stormont Castle the preceding December. As the stand-off continued, it had the knock-on effect of preventing decisions on other elements of the agreement from being taken. Sadly, the sense of crisis was intensified by two brutal murders in Belfast, one in May and one in August, which once again raised the spectre of the malign influence of continued paramilitary activity on the streets of Northern Ireland.
As we entered last autumn, the political situation looked increasingly perilous. We faced the prospect that resignations might trigger early Assembly elections. That could easily have led to the collapse of the devolved institutions and a return to direct rule from Westminster. That would have been a major setback after all that has been achieved under successive Governments during the past 20 years. It was an outcome that the Government acted strenuously and decisively to avoid.
First, in a speech in Cambridge on 5 September, I made it clear that we could not let the financial impasse continue indefinitely and that if there was no resolution to the dispute, we would be left with no option but to legislate in Westminster for welfare reform.
Secondly, following discussions with my right hon. Friend the Prime Minister, it was decided that the time was right to convene a second round of cross-party talks, which began at Stormont House on 8 September. Once again, the talks included the five largest parties in the Northern Ireland Assembly and the Irish Government on matters for which they are responsible, in accordance with the long-established three-stranded approach to Northern Ireland affairs. The objectives we set ourselves were twofold: to secure the full implementation of the Stormont House agreement and to deal with the impact of continued paramilitary activity.
The talks once again lasted for 10 weeks and concluded on 17 November with a document entitled “A Fresh Start: The Stormont Agreement and Implementation Plan”, which was agreed between the UK Government, the Irish Government and the two parties representing a majority of Unionists and nationalists in the Executive. In the Government’s view, that agreement goes a long way towards satisfying the objectives that the participants in the talks set themselves. It gives the Executive a stable and sustainable budget that includes welfare reform; it unblocks progress on other crucial elements of the Stormont House agreement, including institutional reform; and it strongly reaffirms support for the rule of law and places fresh obligations on Northern Ireland’s political representatives to work together with determination to rid society of paramilitary activity and groups. This agreement, like the previous one, was underpinned by a financial package from the UK Government, this time worth up to £500 million.
I can inform the House that progress on the implementation of the fresh start agreement has been good. On 18 November, the day after it was reached, the Assembly passed a legislative consent motion for Westminster to go ahead with welfare legislation. The subsequent Northern Ireland (Welfare Reform) Act 2015 was given Royal Assent on 25 November and the related order was passed in early December. The Government are working closely with the Executive on the extensive secondary legislation that is required to deliver the new welfare system in Northern Ireland. We hope to be in a position to begin bringing that forward shortly, with a view to completing its passage through both Houses as soon as we can.
On 21 December, the UK and Irish Governments, along with the Northern Ireland Executive, established a Joint Agency Task Force to reinforce efforts to tackle cross-jurisdictional organised crime. The Executive have established the three-person panel envisaged by the agreement to make recommendations for a broad-ranging strategy to disband paramilitary groups. The appointments process for the new flags commission is under way. A Bill to reduce the number of Government Departments from 12 to nine has completed its consideration in the Assembly. A further Bill to reduce the number of Members of the Legislative Assembly per constituency from six to five is set for its final stage of consideration in the Assembly tomorrow.
The Bill before the House today represents further significant progress, dealing with elements of the fresh start agreement that require UK Government legislation. Clauses 1 to 5 make provision to put into effect a treaty, to be agreed between the UK and Irish Governments, that will establish the independent reporting commission. The Bill sets out the commission’s primary objective to promote progress towards ending paramilitary activity
connected with Northern Ireland. It will report on progress towards that objective and on the implementation of relevant measures by the UK Government, the Irish Government and the Executive that were agreed in the fresh start agreement. The Bill makes provision for key aspects of the new commission’s work, including the duties to which it will be subject and the legal privileges to be conferred on it as an international body. These are intended to ensure that the commission is able to engage with a range of sources of information in performing its important functions, but will avoid doing anything that might put life, safety or national security at risk. I appreciate that hon. Members will wish to see the text of the treaty. It has not been possible to provide that today, because it has not yet been agreed between the UK and Irish Governments, but we will of course place a copy in the Library of the House in due course as soon as we can.
Clause 6 and schedule 1 will extend the time available for the allocation of ministerial positions in the Executive from seven to 14 days after the Assembly meets following an election. The purpose of the change, as set out in the Stormont House agreement, is to allow parties more time to agree a programme for government on a cross-party basis prior to the allocation of ministerial positions. It is hoped that this will encourage a more bipartisan approach to the programme for government.
Clause 7 will amend the pledge of office for Ministers in the Northern Ireland Executive, reflecting strong commitments set out in the fresh start agreement to give unequivocal support for the rule of law and to work collectively to achieve a society free of paramilitarism once and for all. Clause 8 will introduce a similar undertaking by all Members of the Assembly.
Clause 9 will implement the commitments in the fresh start agreement for the UK Government to legislate, with Assembly consent, to increase fiscal transparency in Executive budgets, thus helping the Executive to deliver an affordable and sustainable budget.