Tag: Claire Hanna

The speech made by Claire Hanna, the SDLP MP for Belfast South, in Westminster Hall, the House of Commons on 1 February 2023.

I beg to move,

That this House has considered replacement of funding from EU programmes in Northern Ireland.

I am grateful to have the opportunity to discuss this issue and, I hope, get clarity for a number of third sector partners and other groups in Northern Ireland and, potentially, areas of opportunity for them. It feels like a very long time ago, but during the EU referendum campaign there were assurances that Northern Ireland would not lose out, doing well, as we did, out of the EU funds, which were based on need. We know that the phrase “take back control” resonated with many people, but it appears to mean taking back control from some of the funds that have traditionally underpinned progress in Northern Ireland and from local decision makers, and handing it directly to London, without any sense of a strategy that local groups can try to support.

In March last year, in the early stages of the community renewal fund, I had a Westminster Hall debate, in which various eyebrow-raising allocations from that scheme were addressed. I am afraid that several of the reservations that people had about process, strategy, co-ordination and transparency have been borne out. It is worth saying that these concerns are not held just by groups that are applying for funding or by my party. The Northern Ireland Executive, as was, adopted the position that the best delivery mechanism for the shared prosperity fund would be via existing structures. Invest Northern Ireland, our economy arm, was very clear that it believed that the funding would be best delivered in conjunction with the programme for government. And the think-tank Pivotal and other respected commentators and business voices made the same point. People are up for change. They understand that it is a reality, and they roll with the punches. But it has to feel transparent, and there has to be a sense of fairness and coherence and that there is more to these allocations than just the whim of Ministers in London.

As I said, Northern Ireland was a net beneficiary in the EU. That is not a secret and is not anything to be ashamed of. Those allocations were made on the basis of need and, in many cases, were a counterweight to the obvious challenges that Northern Ireland faced and to decades of capital underinvestment. That is not just a historical issue: in 2021, the average capital spend per head in Northern Ireland was £1,325, compared with a UK average of £1,407. Of course, all that has contributed to a failure to attract quality investment and foreign direct investment, and decent jobs. That is reflected in our rates of economically inactive people, which are substantially higher than those in other regions.

The founder of our party, John Hume, said many times that the best peace process is a job: the best way to enable people to have hope in their futures and see beyond the things that have divided us in our region is to have meaningful employment—a reason to stay, to get up in the morning and to work together. Those were the opportunities that we saw in European participation, and that is why we continue to work so hard to protect our access to political and economic structures. Funds beyond the block grant, the EU funding as was and the promised successor funds, have been billed and are needed as additional, and they should be an opportunity to realise some of those ambitions, to remove barriers to employment and, in particular at the moment, to allow people to take advantage of the opportunities that the current very tight labour market offers. Unfortunately, that is not what we are getting.

Time is obviously short, so I want to focus on the loss of the European social fund and the European regional development fund and on the replacement, the SPF, and to touch on the levelling-up fund. It is worth clarifying that, as well as those assurances back in 2016, during the referendum campaign, the Conservative party manifesto in 2019 committed to replacing the ESF in its entirety. Northern Ireland got an average of £65 million a year from the ESF and ERDF in the period from 2014 to 2020, with Northern Ireland Departments having the power to manage that in line with UK strategy. That allowed them to align projects that they funded with regional and local strategies, ensuring complementarity and targeted outcomes.

The scenario now is that the UK Government and Northern Ireland Departments are essentially two players on the same pitch, in the same space, delivering the same sorts of projects. That has a built-in inefficiency and means that the results are less than the sum of the parts. That overlapping inevitably applies to monitoring, too. How are we supposed to measure the impact of different interventions in areas like skills if the scheme is only one part of an equation in which all the other Departments are trying to do similar things? It seems that it will be impossible to disaggregate that. The governance is sub-par and the quantum is less, too.

By comparison with the ESF and the ERDF averages, the allocation for the shared prosperity fund in Northern Ireland is £127 million over three years, so we are losing on average £23 million per year from that scheme. That has created this massive gap for funded groups, many of whom just cannot hold on. It is not like in the civil service; people have to be put on protected notice or face closure. Again, there is nothing co-ordinated about any of this. It is not even the survival of the fittest—that the strongest and best organisations will continue—because it is largely the luck of the draw on where organisations are in their funding cycle. Again, this is one more downside of the abandonment of devolution. Engaged and responsive local Ministers could monitor the situation and be flexible and creative with in-year allocation, match funding and bridge funding. They could, in short, protect us from the deficit created by Brexit and this devolution override.

I want to touch on how all this affects specific groups. The NOW Group is a highly regarded project that works across Belfast and further afield, supporting people who are economically inactive because of a disability get into employment. It has 17 years of ESF funding and runs high-profile facilities. If anyone has been in the café in Belfast City Hall, they will have seen NOW Group workers. They help hundreds of people with disabilities into all sorts of sectors, including leading corporates and the knowledge sector. It is a safe bet that any credible funder will keep backing a project like this, but the assurances are just not there. Reserves cannot last forever and, of course, smaller organisations will not have such reserves. In that project, 52 people are at risk of being put on notice and another 800 people with disabilities will be left with no service.

Mencap in south Belfast and far beyond has run ESF projects on social inclusion for decades and was well on track to exceed the target set by ESF of supporting 13,000 people by 2023. It is concerned by how limited the scope of SPF is compared to what they were able to do under ESF. The East Belfast Mission described well what is at stake:

“Our programmes have a long track record of being more successful than government initiatives”.

Jim Shannon (Strangford) (DUP)

I thank the hon. Lady for bringing the debate forward. I work with the East Belfast Mission regularly in my office, so I understand its work and its success rate from the people it helps in my constituency. The mission tells me, as I told the hon. Lady, that without this funding stream it will not be able to continue to have the success stories it has and that that will hurt individuals and families. Like the hon. Lady, I look to the Minister for some assurance that the funding it has received over the past few years can be continued. With that, we can help more of our people over the long term.

Claire Hanna

The mission itself captured that. It talks about its staff being based in local communities with lived experience that helps them understand the specific difficulties people face. It says:

“Many of the people we work with have faced societal and generational barriers to employment, through illness, trauma or other issues. Our projects help break the cycle and raise up our host communities.”

It says that if it loses the fund, it will not be able to provide certainty and will

“lose irreplaceable experience which has been built up over decades.”

This is not just a Belfast issue by any stretch of the imagination. Dozens of projects across Northern Ireland, particularly those supporting younger people, women and minorities, are at risk. First Steps Women’s Centre is a vital part of the community sector in Mid Ulster, working to integrate new and minority ethnic communities, providing crèche facilities to support women back into work and signposting people to other partners who can help them with the multitude of issues they may face.

I want to specifically ask the Minister how the Department ensures that the projects it is funding are aligned with Northern Ireland’s democratically agreed priorities—agreed by the Executive with all five parties—absent a formal role for those Departments. How do the Government propose that groups, such as those I have described, that are facing this essentially bureaucratic gap are supposed to address it? If the gap is not going to be addressed, what are the people who use those services supposed to do instead?

I want to address the widespread concerns about the levelling-up fund. It is a mighty slogan—who does not want to see things levelled up?—but unfortunately, like a lot of slogans of the last few years, it struggles a bit when it comes into contact with implementation. People perceive it as pitting communities against one another, with distant Ministers picking winners seemingly at random. Again, the initiative started badly for us. The initial allocations fell short of the promised 3% of the UK pot. That target was laid out in the strategy document, which seemed to acknowledge the traditional capital shortfall in Northern Ireland but has failed to address it. The fund was initially conceived as a scheme for England with a Barnett consequential, but it has evolved to be more centralised than was promised.

The same paper highlighted the issues that there would be given the fact that local governance structures in Northern Ireland are different from those in Britain, but it has failed to develop a more collaborative approach to mitigate those issues. The same overlap and duplication issues with the SPF pertain here, despite requests from me and others to consider the north-south dimension and co-ordination on this issue. That misses real opportunity to maximise value by co-ordinating with the Irish Government, who have, for example, a £400 million capital fund in the Shared Island unit.

Lessons from the first round of levelling up, which were very well telegraphed, do not appear to have been taken on board for round two. Although the projects that got the nod last week are no doubt good news for the relevant communities, nobody has any clue about what the winning ingredients in those bids were, or how others might have similar success in future applications. We are advised that the Northern Ireland bids were assessed against three of the four criteria set out in the prospectus, namely strategic fit to the economic case and deliverability.

The winning bids are in the public domain, but the other applicants are not. In the interests of transparency, reassurance and learning for future schemes, will the Minister therefore share details of the original Northern Ireland shortlist of projects and their ranking, as presented after the assessors’ moderation meeting? Will she also advise what, if any, additional considerations informed the Minister’s decision? Can she clarify whether the funding decisions were taken by the Minister alone? It has been suggested by some applicants—I have struggled to confirm this—that the gateway pass mark that was used in England, Scotland and Wales was 75%, and that that was dropped, after applications were submitted, to 57%. I hope that the Minister can confirm whether that is the case.

Jim Shannon

The hon. Lady is absolutely right. In my constituency of Strangford, an application was put in for the Whitespots park, an environmental scheme at Conlig. It is shovel ready—the boys could start it tomorrow —but we have missed out on two occasions. She is expressing her concerns over what is happening in her constituency; I echo those and support her in what she says.

Claire Hanna

That again illustrates the confusion that people have about what was selected. Will the Minister confirm whether any criteria additional to those specified were applied? Were they applied consistently to all projects? Will the transparent list that she will publish include any changes in ranking that occurred as a result of new criteria?

Again—for future learning—it was announced that there will be a round three of levelling-up funding. An enormous amount of work goes into the applications, including, as people will know, many thousands of pounds on proposals and engaging the strategy board. Will the Department therefore develop a reserve list from round two applications? That could prevent some groups from having to run up the same professional fees and pouring in the same time, particularly when they are being left in the dark about the criteria. Further, can the Minister clarify what consultation was held with the Northern Ireland Departments and other funding bodies to address the overlap in applications under levelling up and other schemes? Finally, does the Minister think that the spread of applications in Northern Ireland is appropriate?

A lot of these issues are very technical, but they are vital to achieving the things that we all want to achieve for Northern Ireland and for progress. They are also vital to people having some faith in this progress—that they have not had their eye wiped, essentially, by funds being promised, removed and not adequately replaced. That is not the case at the moment. People see this as a net loss from what we enjoyed before Brexit, and that should concern the Department.

The speech made by Claire Hanna, the SDLP MP for Belfast South, in the House of Commons on 27 June 2022.

These few years have been frustrating and damaging for Northern Ireland, and the Bill adds to that. They have been bad for the economy—for businesses that need stability, not brinkmanship—and for relationships in each of the Good Friday agreement’s three strands: within Northern Ireland; between the north and south of Ireland; and between east and west. More than that, the Bill is being seen as part of the Government’s departure from the Good Friday agreement’s values of compromise, partnership and the rule of law. The Bill recycles the same distortions and half-truths that the people of Northern Ireland have been listening to for the last six or seven years of the Brexit debate, and there is still a failure to reconcile the dilemmas that Brexit forces and the choices that the UK Government have made with the reality of our geography.

Some truly mind-bending arguments have been put forth to justify the Bill. It is said that the Bill is about consent and consensus, when in fact the majority of people in Northern Ireland have not consented to Brexit in any form, and a majority of voters and MLAs reject the Bill in the strongest terms. We are told that it is about protecting the Good Friday agreement, while the UK Government and people whom we all saw scuttling away from Castle Buildings when the Good Friday agreement was being forged—they screamed in the windows for the first few years, while we tried to implement it—are in the middle of body-slamming a cornerstone of that agreement.

We have also heard that the Bill is about rights. If it is truly about rights, the women of Northern Ireland, the LGBT community of Northern Ireland and the minority ethnic community of Northern Ireland would like a word. We have heard that it is about the alleged damage to our economy, when every credible business organisation in Northern Ireland is calling for the retention of the protocol. Business after business lauds the potential of dual market access, and Northern Ireland is the only UK region outside London managing to achieve post-pandemic GDP growth.

We are told that the Bill is about a democratic deficit. That is being protested against by removing the entirety of Government from the people of Northern Ireland, and it will apparently be solved by handing over Henry VIII powers that allow the Government to ride roughshod over everybody in Northern Ireland. I am old enough to remember the time when Brexit was supposed to be about parliamentary sovereignty. We have been promised that, and we were promised sunlit uplands, but people in Northern Ireland are getting the gaslit uplands, given that there has, for years, been a cynical campaign to distort the causes and effects of the protocol.

I understand entirely the hurt and frustration of many ordinary Unionists. They have been catastrophically misrepresented by the Democratic Unionist party, and by the Prime Minister, who insisted—[Interruption.] The DUP has been saying all those words for three, four, five years, and we ended up with the protocol. Some of us are here to try to clear up the mess that was created, while the DUP voted down every option that could have prevented the sea border. Unionists and others are wrong to think that the solution is breaking international law and walking away from partnership and compromise.

I hope that the DUP will understand—I mean this in the best possible way—that hundreds of thousands of us in Northern Ireland who do not identify as Unionists constitutionally compromise every single day; we live in a reality where the governance lines do not directly match up with our identity. We do that because it suits the majority of people, and because Northern Ireland is not a place where hard, sharp lines of sovereignty work, or where the winner can take all. It is a place where governance survives in the shades of grey, as the right hon. Member for Skipton and Ripon (Julian Smith) said.

I am glad that some very plausible solutions, including on sanitary and phytosanitary arrangements and veterinary deals, are being mentioned, because for some reason, they disappeared off the agenda. We are told, “I would do anything for Northern Ireland, but I won’t do that. I won’t agree to a simple, negotiated solution that could remove 70% or 80% of checks.” There is no doubt that the protocol can be smoothed and its operation can be improved; everybody says that. As I have said before, nobody in Northern Ireland loves the protocol, but the better options were voted down. As with everything that is worth doing in Northern Ireland, that improvement will be achieved through partnership and compromises, not by imposing unmeetable red lines. That would remove the people of Northern Ireland from the single market, and that has no support.

Instead of doing the hard work and levelling with the people of Northern Ireland, the Government, to whom the DUP has shackled itself, are choosing to distort and deflect. They are using the “stabbed in the back” narrative; they are saying that this is all the fault of remainers, the EU, the Irish, and those who are not patriots, but we know that this is about the DUP. The hon. Member for Stone (Sir William Cash) mentioned Eamon de Valera, and that reminded me of a quote that has echoed down through Anglo-Irish relationships from the last century. Lord Edward Carson, who had been the leader of Unionism, said in the other place, as he reflected in disillusionment on the shambles left by the Conservative party on the island of Ireland,

“What a fool I was. I was only a puppet, and so was Ulster, and so was Ireland, in the political game that was to get the Conservative Party into power.”—[Official Report, House of Lords, 14 December 1921; Vol. 48, c. 44.]

The only difference between then and now, when we have this miserable, deceitful Bill before us, is that we are talking about maintaining the Conservative party in power and propping up a failing, discredited Prime Minister. This is also perhaps about the Foreign Secretary currying favour with the malevolent European Research Group and once again pulling the wool over Unionism’s eyes.

I suspect that we cannot stop the Bill—people will troop through the Lobby and support it—but Members should understand that people on the island of Ireland, and further afield, are watching the Government. They will have to work through the implications of dealing with a Government who are in a very bad place morally, and who are in contravention of the culture of lawfulness that many of us have worked very hard to cultivate in Northern Ireland. The Government’s approach is fundamentally altering the dynamics of relationships on the island.

Having spent the last six years having the same argument time and again, I do not believe that the Conservative party has it in it to put the people, businesses and economy of Northern Ireland first. I implore my colleagues on the Opposition Benches: please, unshackle yourselves. Work with us—your neighbours, colleagues and friends—on the negotiated solutions that we all know are possible. We have solved bigger problems before; these solutions are available. End this toxic debate. That is what the people of Northern Ireland want. They do not want to have to hear about this day after day on the radio. They want dual market access, and they want our economy to prosper; and that is entirely achievable, with good will.