If he will make a statement on the work of the Assets Recovery Agency. [120566]

I have been informed by my right hon. Friend the Secretary of State for the Home Office that the Northern Ireland branch of the Assets Recovery Agency has six cases that are currently under active investigation. The right hon. Gentleman will know that the agency has been granted investigative orders, including search warrants, by the High Court in two cases on 13 June and 23 June. Indeed, search warrants were executed yesterday at three premises in County Down by Assets Recovery Agency staff, with the support and assistance of the Police Service of Northern Ireland.

I welcome the progress that the Minister reports. May I underline how important it is that the agency produces results, in particular with regard to the leading godfathers of paramilitarism and racketeering, because they are largely the same? I do not need to go into names, but the agency needs to target very quickly leading paramilitaries who we know control the major rackets. I hope that the agency will go after them and not just go around gathering up smaller fish.

On accountability, because the body does not exercise police powers, it is not subject to inspection by Her Majesty's inspectorate. Will it come under the purview of the inspectorate of criminal justice? In that respect, we welcome the appointment of Lord Clyde as inspector. Will he have a supervisory role, because it would be wrong if that body turned out to be the only element in the broad spectrum of criminal justice that is not subject to an inspection arrangement?

I welcome the right hon. Gentleman's words about the good work that the agency has undertaken in Northern Ireland. However, on accountability, the Northern Ireland branch of the Assets Recovery Agency is part of a UK-wide agency. Along with other partners of the Organised Crime Task Force, its accountability is often to Ministers and other Departments outwith Northern Ireland Office responsibilities. In this case, I believe that the current accountability arrangements are appropriate.

May I assure the Minister that support for the Assets Recovery Agency comes not just from the small parties in Northern Ireland, but from Northern Ireland's largest political party as well?

Is the Minister aware of the concern that the bulk of the cases considered by the Assets Recovery Agency involve loyalist paramilitaries, whereas the largest amount of money has been obtained by republican paramilitaries? Is there any step she can take to ensure that there is a proper pursuit of republican paramilitaries? Does she think that the Assets Recovery Agency could give any assistance to the right hon. Member for Upper Bann (Mr. Trimble) to recover some of his recent lost assets?

I am grateful to receive support for the Assets Recovery Agency, from whatever quarter it comes. On the selection of cases, it is important to remember that that is pursued by the agency and it is entirely for its director, supported by the assistant director of Northern Ireland, to determine. She must act in accordance with her statutory duty to use her powers in the way that she considers best calculated to reduce crime. However, we know of the clear links that exist between paramilitary organisations and organised criminal networks in Northern Ireland. We are very conscious of those links and pursue all organised criminals, whatever their political persuasion or complexion.

In the context of assets recovery, is there not a danger that the IRA will not disarm, not because it still believes that it can bomb its way to a united Ireland, but because it needs its arms to sustain the menace of its criminal activities?

That does not apply just to the Provisional IRA, but to all paramilitary organisations that we have established are clearly engaged, or associated with, organised criminals who operate not simply within localities in Northern Ireland, but with organised criminal networks across the UK, Europe and the world. We must oppose those groups. The hon. Gentleman is right that they use their ill-gotten gains for the pursuit of terrorism. It is precisely because of that link, and the Government's recognition of it, that we established the Organised Crime Task Force in the first place.

If he will make a statement on the peace process. [120567]

We are pursuing with the political parties how the devolved institutions might be restored and the remainder of the Belfast agreement fully implemented. It is essential to such advance, however, to have clarity on both the future of paramilitarism and the stability of the institutions.

Does my right hon. Friend agree that following recent developments in the Ulster Unionist party, a significant majority remains in favour of the peace process in the Ulster Unionist party and in the Unionist electorate, and an overwhelming majority is in favour of it in the electorate at large? Will he take the opportunity to work with those who favour the peace process and marginalise the fringe groups that do not?

I cannot agree with what my hon. Friend said in his last sentence about marginalising groups that do not agree with the Good Friday agreement. It is my job to talk to all political parties in Northern Ireland, irrespective of their political standpoint. However, I very much agree that the vote at the Ulster Unionist Council last week indicated that a majority of its members are still in favour of the Good Friday agreement. I agree with my hon. Friend that the majority of people in Northern Ireland believe that the best way forward is through the Good Friday agreement, and I also agree that the polls suggest that that includes the Unionist community. I believe that people in Northern Ireland want an end to paramilitary activity, and want the stability of the institutions that will be achieved through the Good Friday agreement.

Would the Secretary of State tell the House how an amnesty for on-the-run IRA terrorist suspects can contribute to the peace process? Does he understand the growing public anger at the continuing persecution of former members of the Royal Ulster Constabulary and those who served in the security forces in tribunals such as the Bloody Sunday inquiry, where millions of pounds worth of taxpayers' hard-earned money is being squandered?

I would not agree that money is being squandered. However, I agree that it is important for us at some stage to draw a line under what has happened in the past 30 years in Northern Ireland. There will come a time when we want to achieve a normal society in Northern Ireland, and I believe that we are going in that direction. As for the on-the-runs, the hon. Gentleman will be aware that the proposals discussed at Hillsborough do not include an amnesty for on-the-runs, but they do make provision for a proper judicial process. He will also be aware that that process is linked in to acts of completion by the IRA, so it is entirely conditional on what happens in that area.

Does the Secretary of State agree that the peace process, which has now stalled, cannot be put back on track until there is firm, verifiable demilitarisation and destructuring by the paramilitaries, both republican and loyalist? Does he also agree that Government policy and attitudes to date have not created common ground among nationalists and Unionists who support the Good Friday agreement, so it is essential that the Government undertake a drive to ensure that paragraph 13 on decommissioning, destructuring and the cessation of violence against the community is immediately implemented in its entirety, particularly by the Provisional IRA, so that we can re-establish the devolved institutions of partnership.

My hon. Friend is entirely right that progress on restoring the institutions of the Good Friday agreement rests on the confidence and trust that need to be built up between political parties in Northern Ireland. That can be done only if the issues addressed in paragraph 13 about paramilitary activity are dealt with. My hon. Friend is entirely right about that, and his personal history in Northern Ireland is such that we listen to him with great respect. I believe that in the months ahead we will resolve these problems, which are extremely difficult at the moment. However, it is important that the House realises that unless we resolve the problems first, of paramilitary activity, and secondly, of the stability of the institutions we will not get a properly restored Executive in Northern Ireland.

Paragraph 8 of the validation, implementation and review section of the Good Friday agreement states that

"the two Governments and the parties in the Assembly will convene a conference 4 years after the agreement comes into effect, to review and report on its operation."

It is now more than five years since the agreement was signed and four and a half years since the Northern Ireland Act 1998 was passed, but that review has not even started yet. Why not?

The hon. Gentleman is aware that we have had reviews of the Good Friday agreement under paragraph 7. A review under paragraph 8, which makes provision for a more general, deeper and intense review, will take place before the year is over. It is important for political parties and the two Governments to get together to look at the issues that divide us and ensure that the Good Friday agreement is implemented in full. However, the hon. Gentleman will be aware that if that is to happen we must rebuild confidence between parties, and to do so we have to address the issues that I referred to earlier.

I went to Belfast last week on a cross-party visit and was struck by the positive changes since I first visited many years ago, with the development of the city centre and the work of those such as the East Belfast community partnership to promote regeneration, jobs and skills. I also found considerable good will towards implementing the Good Friday agreement and returning to a normal life. Does my right hon. Friend agree that the priority must be to rebuild trust and move back towards an effective power-sharing Executive and Assembly?

My hon. Friend is right. We must rebuild that trust in order to move forward in the process. She is also right to draw the House's attention to the improvements in the life of people in Northern Ireland since the signing of the Good Friday agreement in 1998. She is aware that there are now 34,000 unemployed people in Northern Ireland, which is the lowest figure since 1975; that the increase in economic activity in Northern Ireland is such that it is the fastest-growing region or nation in the whole of the United Kingdom; and that there has been a 25 per cent. increase in tourism in Northern Ireland since the Good Friday agreement. She is particularly aware that the security situation in Northern Ireland is much improved on what it was in 1998.

On behalf of the Opposition, I welcome the Minister of State, the right hon. Member for Warley (Mr. Spellar), to the Northern Ireland Front Bench. He and I are old sparring partners, and we look forward to his contributions on this important subject.

As it is clear that the peace process has been paralysed since the Government decided to cancel the elections, and the parties have turned in on themselves, and as there continue to be murders by loyalist paramilitaries and attempted murders by republican dissidents, and the Garda Commissioner and the Chief Constable have both expressed their concern about the security position over the past few days, would it not be sensible to shelve all plans for any reductions in intelligence gathering or security capability in Northern Ireland, including the plans to dismantle the observation towers in south Armagh?

The hon. Gentleman knows that any actions that are taken with regard to security installations are dealt with on the basis of the level of threat. He also knows that the normalisation paper that was discussed at Hillsborough, and which appears in the joint declaration, is entirely related to acts of completion by the IRA. The hon. Gentleman is right that, towards the autumn, it is important for us to engage in intensive discussions and negotiations with political parties in Northern Ireland so that we can have an Assembly in Northern Ireland. In addition, we want the Executive governing Northern Ireland, so that people who are from Northern Ireland can govern the people in Northern Ireland.

Is not the whole point that there have been no acts of completion, so reductions in our capability are inappropriate? Even if the Chief Constable and the General Officer Commanding were prepared to countenance the dismantling of those towers, is it not rather foolish to give away that card for nothing, in advance of the comprehensive negotiations that we all hope can resume before too long?

I repeat to the hon. Gentleman that the decision to dismantle the towers is entirely in line with the wishes of the GOC and the Chief Constable. I repeat that acts of completion by the IRA, particularly with regard to paramilitary activity, are linked to the rest of the normalisation paper, which is in the joint declaration. All our efforts are bent on ensuring that in the autumn we resolve our difficulties, we have an Assembly and we have an Executive, so that the process can move forward.

Does the Secretary of State agree that for the first time in history, the vast majority of the people of Ireland north and south have voted together on how they wish to live together, by overwhelmingly voting for the agreement? For that reason, it is the duty of all true democrats to implement the will of the people. Certain Opposition parties that wish to overthrow that agreement are overthrowing the principle of consent, which was the fundamental principle of Unionism. If they do that, what damage are they doing to their own people?

My hon. Friend is entirely right. In 1998, people north and south voted overwhelmingly for the Good Friday agreement, and the institutions of that agreement are the only way forward. I know that my hon. Friend is also aware that for us to move forward and to ensure that those institutions are restored, we have to restore the confidence and trust between parties in Northern Ireland, and that is based on ensuring that there is an end to paramilitary activity and that the institutions in Northern Ireland are stable.

If he will make a statement on the links between (a) Sinn Fein and (b) the Provisional IRA and (i) Batasuna and (ii) ETA in Spain. [120568]

The political and ideological relationship between Sinn Fein and Batasuna are well attested, as evidenced by recent press statements from Sinn Fein.

The Minister will surely be aware, if she listens to her intelligence advisers, that ETA-Batasuna and IRA-Sinn Fein are identical and integrated organisations. In the case of our home-based IRA-Sinn Fein organisation, the Sinn Fein president and chief negotiator sit in the army council. The Minister should also be aware that under the definition of proscription of organisations in the Terrorism Act 2000, Sinn Fein should be on the list of proscribed organisations. Is it not time that the Government had the same courage as the Spanish Government and put Sinn Fein on the proscribed list until it acts as a democratic party?

The hon. Gentleman is right that Sinn Fein is the IRA's political wing and as such the two are inextricably linked. However—it is important for us all to bear this in mind—the Spanish do not regard Batasuna as supporting the peace process. Sinn Fein does support the peace process. Unlike ETA—[Interruption.] Hon. Members may disregard that if they wish, but unlike ETA the IRA is on ceasefire, and it is worth bearing in mind the difference in the behaviour of the two organisations. However, hon. Members will know, and will have heard the Government state many times, that ceasefires on their own are no longer enough to restore trust and confidence and to allow the re-establishment of the institutions. The IRA has to make it absolutely clear that all paramilitary activity, as set out in paragraph 13 of the joint declaration by the British and Irish Governments, will come to an end.

The Minister has admitted that Sinn Fein and the IRA, a terrorist group operating in part of the United Kingdom, are inextricably linked. Why, then, do the Government persist in trying to insert into all accountable Executive positions in part of the United Kingdom a group linked to and inextricably part of a terrorist organisation? Despite the Secretary of State's determination to close his eyes to reality, if he looks along this Bench in the House of Commons today he will see the reality—that the policy of supporting Sinn Fein in Government in Northern Ireland is supported only by a rump of the Unionist party as led by—

Order. The Minister will answer only the question.

I repeat that, unlike ETA, the Provisional IRA remains on ceasefire. The cost to Spain in terms of ETA's continuance of its terrorist programme has been 46 deaths since 1999. The comparisons with the Provisional IRA deserve scrutiny. The Provisional IRA, in our assessment, remains on ceasefire. However, as I said earlier, and it bears repeating, ceasefires on their own are no longer enough.

The Minister will be aware that all the structures to deal with terrorism must work properly, whether in Northern Ireland or outside it. Will the Minister confirm that, as of now, necessary investigations into the criminal activities of loyalist paramilitary groupings cannot be properly processed by the police ombudsperson for the very good reason that the Government will not fund those investigations? Will the Minister take the opportunity now to tell the House that the Government will fund at least three investigations into not just serious irregularities, but murders?

I am afraid that I do not agree with my hon. Friend on the point that he has made. The Police Ombudsman for Northern Ireland received the whole of the budgetary requirements that she put forward in the case that she made. We met her request in full. The cases that she takes forward are a matter for her to prioritise within the budgets that she is required to manage.

The Minister may maintain that the IRA "remains on ceasefire", to use her words, but the reality is that the current problems in Northern Ireland politics are caused by the IRA's failure to complete and the Government's repeated concessions to it. Is she aware of the recent poll conducted by Millward Brown Ulster, which clearly states:

"If the IRA was to disband, 76 per cent. of Unionists would support the Good Friday agreement"?

Is it not crystal clear where the Government's efforts must lie?

I do not disagree with the hon. Gentleman's comments. The complete transition to exclusively peaceful means is the contribution that all paramilitary organisations could make and which the people of Northern Ireland deserve. As I have said previously, statements or words on their own are not enough. The people of Northern Ireland, in order to have the confidence that all parties engaged in the peace process are fully wedded to democratic means, need to see actions that follow through on the words that they say.

If he will make a statement on the criminal activities of Northern Ireland paramilitary organisations outside Northern Ireland. [120569]

The Organised Crime Task Force's most recent assessment is that two thirds of the organised crime groups in Northern Ireland have links to paramilitary organisations. Clearly, a number of those groups undertake their criminal activities both across and outside Northern Ireland.

Good operational links already exist between law enforcement agencies nationally and internationally, as my hon. Friend has good reason to know in his constituency—[Interruption.] I will continue to work with. Organised Crime Task Force members with UK-wide responsibilities to assist in the fight against national and international organised crime—[Interruption.]

Order. There is far too much noise in the House, and it is unfair to those who are in the Chamber for Northern Ireland questions.

I thank my hon. Friend for that answer. Given her very heavy work load, I am sure that she is unable to read the Dundee Evening Telegraph and Post or The Courier and Advertiser, but she will be aware from last week's reports in the Belfast News Letter and The Irish Times of the 26-year sentences handed down to five members of a Protestant paramilitary organisation, the Red Hand Commando, for their armed robbery at a Dundee public house last year. On speaking to the chief constable of Tayside, I was told that there was little consultation between the authorities in Northern Ireland and the police force in Tayside and Dundee. Given the statements that she has made today, I hope that she will do all that she can to ensure that greater efforts are made to improve liaison between the two organisations on the mainland and in Northern Ireland.

I am surprised to hear my hon. Friend's comments and I shall look into the case that he raises. I had understood that the Police Service of Northern Ireland indeed provided written statements and that an officer testified in the court case. I had concluded on that basis that there were good relations. I know that such relations exist on an operational basis between the Police Service of Northern Ireland and other police forces throughout England and Wales and, indeed, Scotland. Where such good links need to be developed, they are developed and built upon, and they are to be commended.

The Minister will be aware that a very good Bill, the Crime (International Co-operation) Bill, has just completed its Standing Committee stage. What discussion has she had with the Chief Constable of the Police Service of Northern Ireland about the implications of that Bill for tackling paramilitary organisations in the Republic of Ireland?

As the hon. Lady knows, I regularly meet the Chief Constable to discuss a range of issues. No concerns as such have been raised directly with me about the implications for Northern Ireland of the Bill to which she referred. I am aware of the very good relationships that exist between the Police Service of Northern Ireland and the law enforcement agencies in the Republic of Ireland, and I will do all in my power to foster those good relations so that we can continue to see successful joint operations of the sort that recently led to interception of the vehicle bombs that were thankfully intercepted at the border at the weekend and in Londonderry.

Is the Minister aware of the increasing concern, particularly in border areas in Northern Ireland, about paramilitary groups in the Irish Republic, including the various factions of the IRA, who are making preparations for further bombs like the one to which she alluded? Thankfully, that was intercepted in Londonderry, but there are many more. Is she aware of the concern of people in Northern Ireland regarding those preparations?

I am indeed aware of such concern in Northern Ireland. The dissident republicans continue to pose a serious threat. However, as I have said, due to the very good co-operation that exists between the Police Service of Northern Ireland and the Garda Siochana in the Republic of Ireland, there has been a large degree of success in dealing with dissidents in both the north and the south of Ireland. That success will continue, and I will continue to do all that is in my power to foster good co-operation between those law enforcement agencies.