While the Northern Ireland economy does have its challenges, as we do across the United Kingdom as we come out of covid-19, I am confident that Northern Ireland has a promising economic future as we recover from this crisis. We will continue to work with business, the Executive and local partners to make sure we do everything we can to get the economy not just back up and running, but turbocharged as it moves forward, laying the foundations for a stable and sustainable economic future.
I thank the Secretary of State for that response. Does he agree with me that the much talked about reduction in corporation tax in Northern Ireland to 12.5% would be a major boost to the economy of the Province? If one or two parties in Northern Ireland are not keen on that idea, would the Government consider introducing it once we are free of the shackles of the European Union in that respect?
I think we are all looking forward to being completely free of the shackles of the European Union. We in the UK Government remain committed to supporting the Executive to achieve the devolution of corporation tax, so that they will have the power to make the decision that my hon. Friend has outlined. In the Stormont House and subsequent “Fresh Start” agreements, we made it clear that these powers would be devolved and provided, subject to the Executive’ demonstrating that their finances are on a sustainable footing for the long term. It is for the Northern Ireland Executive to take the steps necessary to place those finances on a sustainable footing, such as by putting in place the fiscal council, which I hope they will do very swiftly.
There are 600 job losses at Bombardier, 400 at Thompson Aero, and another 200 at risk from the cancellation of the Airbus neo—new engine option—project. Northern Ireland cannot afford to lose these jewels in the crown of its economy, so will the Secretary of State ensure that the Government step in with a strategy and support for the aerospace sector similar to that provided by France, Germany and the US?
The hon. Lady asks a very important question about the aviation industry more widely. Obviously, I have spoken to the chief executive of Bombardier in particular, and my colleagues at the Department for Business, Energy and Industrial Strategy, and the Minister of State, Northern Ireland Office, my hon. Friend the Member for Worcester (Mr Walker), have been in constant co-ordination and contact with the relevant companies.
The UK Government have provided some £2.1 billion through the covid corporate financing facility to the aerospace sector and airlines more widely, and additional flexibility for UK Export Finance to support £3.5 billion of sales in the next 18 months, as well as putting £0.5 billion into our aerospace research and development over the next few years. We are determined to do everything we can to support all sectors of our economy, including the Northern Ireland economy.
What discussions he has had with representatives of the Northern Ireland Executive and the Irish Government on co-ordinating the response to the covid-19 outbreak.
I am working closely with businesses across Northern Ireland to ensure that they are ready for the end of the transition period, which will come at the end of December this year. The first business engagement forum meeting was held on 10 June, and my officials continue to engage in detailed technical discussions, as we did before that and as we will continue to do.
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Covid-19: Public Security
Covid-19: Economic Recovery
Covid-19: Hospitality and Tourism
Cross-border Transfer of Jobs
EU Relationship
Restoration of Assembly Powers
“New Decade, New Approach” Deal
Prime Minister
Engagements
20 of 159 shown
The Secretary of State for Northern Ireland (Brandon Lewis)
ConservativeGreat Yarmouth
Throughout the covid-19 outbreak, the UK Government have continued to meet regularly with the First Minister and the Deputy First Minister, as well as other Executive Ministers, to co-ordinate the response and, importantly, to take steps together towards a healthy and full economic recovery.
I am delighted to learn about the positive relationship that exists between the Northern Ireland Executive and the UK Government during this unprecedented crisis. Does my right hon. Friend agree that, as the Northern Ireland Executive face some critical challenges in the near future, the spirit of co-operation, which will benefit not only Northern Ireland but the whole of the United Kingdom, should continue?
My hon. Friend makes a very good point. It has been a really positive period of working together, across all the devolved parts of the United Kingdom, with the UK Government. I have had regular weekly meetings with both the First Minister and the Deputy First Minister, apart from the wider Government meetings that they and their Ministers have been involved with. That is a positive sign of how we have been able to work together for the best interests of everybody in all communities in Northern Ireland. I hope that that will continue in the weeks, months and period ahead.
I also welcome the positive way in which the Northern Ireland Executive have worked with the UK Government during this crisis. Does my right hon. Friend share my hope that this positive spirit of co-operation continues?
Absolutely. There has been an absolute unity of purpose in dealing with covid over the period from all parts, and the relationships—east-west, and of the Republic of Ireland with Northern Ireland and the UK Government—have been very positive. We have worked together and met regularly and, as I say, I think that has been a positive sign for what we can achieve in the future.
The Prime Minister continues to insist that Northern Ireland businesses can simply throw customs exit declarations “in the bin”, while Michel Barnier continues to insist that this would be incompatible with the UK’s legal commitments. The Secretary of State says that consultations are ongoing, but does he not see that this cannot drag into the autumn? Business needs clarity now, given that preparation for a no-deal exit takes months. If he cannot provide that, he owes it to business to extend the transition period until proper answers are found.
We will not be extending the transition period; we have made that clear. On the wider point, we will set out more detailed plans for extensive support from Her Majesty’s Revenue and Customs for Northern Ireland businesses that will be engaging in the new administrative processes, and we will issue that guidance this summer. I shall be clear, as I have been previously at this Dispatch Box: Northern Ireland businesses trading with the rest of the UK are part of the UK customs territory. They will have unfettered access.
On that point, are the Government actively seeking a waiver from the EU to prevent the need for customs declarations on goods being shipped between Great Britain and Northern Ireland? How advanced are such discussions, if they are taking place?