HL Deb 20 December 1982 vol 437 cc863-7

3.42 p.m.

The Earl of Gowrie rose to move, That the draft order laid before the House on 17th November 1982 be approved.

The noble Earl said: My Lords, this order is being made under paragraph 1 of Schedule 1 to the Northern Ireland Act 1974. The purpose of the draft order is to appropriate the 1982–83 Autumn Supplementary Estimates of Northern Ireland Departments, which amount in total to some £47 million. The 1982–3 main Estimates which were approved by your Lordships on 22nd July amounted to £2,472 million. The schedule to the draft order describes the purposes of the supplementary provisions sought. Perhaps I should mention that more detailed information can be found in the Estimates volume itself, copies of which have been placed in the Printed Paper Office.

The main items sought are for agriculture, some £ 12 million; roads services, some £8 million; social security benefits (that is to say, non-contributory benefits), £22 million; and just over £1 million for the initial costs of the Northern Ireland Assembly. Apart from the social security provision, which is required principally because of the increase in the numbers of unemployed and beneficiaries in other categories, the major increases reflect the expenditure to be met in providing special aid for agriculture and in repairing severe damage to the structure and fabric of many of the Province's roads which was caused by the abnormally cold weather of the winter of 1981–82.

These requirements are of course set in the context of the Government's overall framework for public expenditure in Northern Ireland, which themselves reflect established economic and political priorities for the Province. I think it might be helpful if I reminded the House of this background. At least in so doing I believe that I am trying to comply with the wishes of several noble Lords who in previous appropriation order debates indicated that they did not find it altogether satisfactory to have these rather dry figures read out and that they wished to be kept informed of the broader strategy, in economic terms, being followed by the Government.

The simple truth of the matter is that there is no future for the United Kingdom in general or for Northern Ireland in particular in terms of economic health which is not based on the creation of the right conditions for sustained economic growth and better employment opportunities. We must continue to control inflation, of course. Excess public spending, so often urged upon us in the Province, means borrowing; and borrowing can drive up interest rates, with direct adverse effects on growth and jobs. Unless we increase the tax burden, with equally damaging disincentive effects, we must continue to wrestle with public spending. I would remind the House that these orders are occurring within a year which is the first time since 1977 that the annual review has not led to an increase in planned expenditure overall in the United Kingdom, though I am glad to be able to say that within that rather dour framework Northern Ireland has had some real increase.

The House will understand that I am not arguing that we are simply pursuing a doctrinaire approach based on the philosophy that public spending is in itself a bad thing. That would be meaningless, certainly in the context of Northern Ireland and, indeed, elsewhere. What I mean is that we have to go on doing what we can afford to do and, equally important, that we must make the best use of the resources which can be made available in any given year. It is not good enough for critics simply to say that we need much more. Those who make that facile request must go on to argue how that "more" should be delivered. But my ministerial colleagues and I in Northern Ireland will always listen carefully to anyone who has ideas about how we can make better use of the resources we have.

As we see it, we have a two-fold task in relation to public spending in the Province. First, we have to ensure that Northern Ireland receives its fair share of the national cake, and perhaps more than the fair share strictly implies: a share which reflects the very special needs and circumstances of Northern Ireland. I think all of us recognise that in its travails Northern Ireland is unique in the United Kingdom. Secondly, we have to establish priorities to ensure that we are responding to these difficulties and travails in the most intelligent way possible.

On the first front, over the last two years we have been able to announce increases on our previous plans. I am satisfied that these represent a significant response by the Government to the special problems of Northern Ireland. In the area of priorities we are adhering to the same framework within which we have been operating over these two years. This means priority for law and order. It means priority also for industrial development and support and energy, where we have succeeded in containing what otherwise would be rapidly escalating electricity costs. In addition, we have to pay very special attention to employment programmes. Within the social and environmental programmes overall, we give our top priority to housing. We believe these priorities reflect not only our own experience but the views of the very many individuals and interest groups with whom we have met.

The news at the end of last week from the Michelin Tyre Company, as the House will be aware, is devastating for the families and for the area of the Province concerned—devastating especially as it comes at Christmas. It makes it more important, not less, that we understand the advantages and possibilities that exist for industry in Northern Ireland. It certainly adds to our determination to carry out our responsibilities. I hope that many United Kingdom investors who are prepared to consider investment in the Republic or, indeed, further afield will also be prepared to look at the very great potential which I know exists in Northern Ireland in terms of human and physical resources, and will look with a cold eye at the considerable support to these which the Government add through our industrial development packages.

All too often, there is a negative approach to public spending in this sense. How very often do we see a concentration on what cannot be done or a direction of attention to the inadequacies of resources available? We could all think of constructive things to do if we had the overall economic strength to allow us to afford them; but this does not mean to say, even in a period of deepest recession, that we should conclude that we cannot do something worthwhile. I believe there is scope and that we have shown scope for a positive approach, through all of us—inside Government and beyond—concentrating our energies on the things we really need to do, and not only doing them but earning the credit which goes with achievement.

To put this into some real perspective, may I remind the House that only last week my right honourable friend the Secretary of State announced that the public expenditure total for which he and Northern Ireland ministerial colleagues will be responsible in 1983–84 will be some £3,800 millions. I believe that together with the area boards, councils and other agencies, as well as with the people of Northern Ireland, we can do a great deal with a sum on that scale, and that the team approach to planning for the best use of resources in future years is what is now required of us. My colleagues have been much impressed with the courage, energy and determination of Ulster people, and these human resources are also backed by an excellent physical industrial infrastructure. There are excellent roads, modern port and airport facilities, a very up-to-date telecommunications system, an environment which by any standards is unpolluted and a joy in which to live, and recreation facilities which are the envy of many.

There are, of course, the acute disadvantages—the blots on the landscape of Northern Ireland's reputation—of which we are all aware. I shall have something to say on these issues—the security situation and the political situation—when we come to debate the next order. My purpose at this point is to draw attention to the advantages which Northern Ireland has and to the very real strengths of the Province which are so often and so easily overlooked.

One of these strengths and advantages is the advantage of scale and the consequent capacity to get things done in the Province quickly and effectively. This has made the consultation which I and my colleagues undertake in establishing public expenditure priorities and carrying them through very rewarding indeed. Until now, what has been lacking has been any regional focus for political activity; any regionally-elected forum which could contribute to this decision-making process. I want to emphasise that the public spending issues about which I have been speaking this aftrnoon affect every man, woman and child in the Province. They are decisions to which the regionally-elected bodies should contribute, and I very much hope that the Assembly will be contributing to them in the future. In fact, they are decisions which, in my view, locally-elected people should actually be taking and carrying out, and for which they should be answering to the electorate.

I look forward to the day when we can have a locally-elected body doing that in respect of these expenditures in Northern Ireland—and doing so with the support of all sections of the community there, as well as with the confidence of the people of the rest of the United Kingdom and the good will and close co-operation of our neighbours in the Irish Republic. The Assembly is a significant move in that direction, and while progress is a lot slower than we would like, a beginning has been made. Certainly I can say to the House that in my experience there has been a great deal of common ground throughout the Northern Ireland community in relation to the economy and to public spending priorities. What we are now seeking to do is to see that common ground translated into stable institutions. Even without devolution the Assembly, through its general sessions and departmental committees, has a chance to make that possible. I certainly look forward, as Finance Minister, to having the views of the Committee for the Department of Finance and Personnel in relation to my own responsibilities.

It seems to me really extraordinary that the official Unionist Party in Northern Ireland has somehow decided that the Committee for the Department of Finance and Personnel is an unimportant committee when in fact, as we know, the collection and distribution of resources is about the most important economic undertaking that can be achieved. I know that the committees will have views on priorities, and I expect these to be put very forcibly to me. Public spending decisions are not a once-and-for-all exercise. We continually review all our spending to ensure that value has been obtained for money, and the programmes are not retaining money which would be better used elsewhere. This is not easy, of course, but it is crucially important, and the Assembly, with its committees, has a great deal to contribute in our decisions.

I have tried to outline very briefly the most significant features of the draft order and to set it (as I was requested to do when we last debated an appropriation order) in the context of the Government's approach to the economy and public spending generally. I have identified my hopes for the greater scrutiny by the Assembly of the monies which are sought in the order. I know that noble Lords will wish to raise other matters of particular concern to them, and I will try to deal with these matters when winding up. As ever, I am grateful to noble Lords who took the kind trouble to give me advance notice of the points they wish to raise. I commend the draft order to the House.

Moved, That the draft order laid before the House on 17th November 1982 be approved.—(The Earl of Gowrie.)

The Lord Chancellor

My Lords, perhaps it would be for the convenience of the House if my noble friend now repeated a Statement.