The Secretary of State for Scotland (Michael Moore)
The first person I spoke to after my appointment was the First Minister. I have since had further discussions with him and Scottish Ministers, including on the subject of the fossil fuel levy and transmission charging. I remain committed to having constructive discussions with Scottish Ministers.
Mr Brown
I welcome the Secretary of State and the Under-Secretary to their new posts. For the Under-Secretary it will be déjà vu, recalling his initial days as a Social Democratic party councillor sitting with the Liberals. On future nuclear electricity generation, can the Secretary of State explain to the House how his position and that of the Energy Secretary squares with the stance taken by the Under-Secretary?
Michael Moore
I thank the hon. Gentleman for his warm welcome. I am sure that as a fellow south of Scotland MP, he is delighted to see the region so well represented in the Scotland Office.
On energy policy and particularly electricity supply, my right hon. Friend the Secretary of State for Energy and Climate Change and the Government have set out clearly in the coalition programme our commitment to ensuring that under our policy we tackle the twin issues of climate change and a secure, clean and affordable supply of energy. We have set out how we intend to go about that in respect of all forms of energy, and I am sure the hon. Gentleman will support us in developing that programme to ensure a successful and productive future for Britain’s energy and Scotland’s energy within it.
Sir Robert Smith (West Aberdeenshire and Kincardine) (LD)
In those discussions with the First Minister, did my right hon. Friend take on board the great potential that Scotland has for marine renewable electricity generation? In that context, will he make a commitment to an early visit to the north-east of Scotland to see the sub-sea engineering skills that have been developed in the oil and gas industry, which have so much to offer that marine renewable industry?
Michael Moore
I thank my hon. Friend for that question. Yes, indeed we discussed marine and other renewables—briefly, it must be said. There are many areas in which, under the new arrangement whereby we will engage constructively with one another under the respect agenda, we can work productively together. I have already had discussions with representatives of the oil and gas industry, who made the very point to me that my hon. Friend makes about the skills and how those may apply to marine renewables. I would be delighted to come to the north-east of Scotland to further my understanding of those issues and discuss them with him and others in due course.
Dr Eilidh Whiteford (Banff and Buchan) (SNP)
Is the Secretary of State aware that Peterhead power station pays £29 million every year in transmission charges, whereas a similar facility in London would attract subsidy of about £3 million per annum, and that as a consequence Scottish and Southern Energy is planning up to 50 job losses at the Peterhead plant? Does he accept that the transmission charges regime is discriminatory and is discouraging investment in renewable energy in the very parts of Scotland best equipped to produce it? When he comes to the north-east of Scotland, as he has just pledged to do, will he agree to meet me and representatives of the management and work force at Peterhead power station to discuss the transmission charges regime and the future of the Peterhead plant?
Michael Moore
As the hon. Lady knows, the transmission charging regime is primarily a matter for the National Grid. It is an issue that others have raised with me and Ofgem. I shall be keen to talk further about it with her and others from the Scottish Government. There have been representations from all sides of the House already—it has been a busy few days—and I look forward to taking forward those discussions in the most appropriate form in the future.
Jo Swinson (East Dunbartonshire) (LD)
I welcome my right hon. Friend to his position. I am pleased to hear what he said about marine renewables, for which Scotland clearly has a massive potential, yet six years after it was set up, the marine renewables development fund still has £42 million lying unclaimed and unused because of the criteria attached to it. Will my right hon. Friend look into the matter and ensure that under this Government the support announced for green energy becomes reality?
Michael Moore
I thank my hon. Friend for her kind welcome. I take on board her observations about the criteria that have been used, and I look forward to having further discussions with her and my right hon. Friend the Secretary of State for Energy and Climate Change.
Mr David Hamilton (Midlothian) (Lab)
2. What assessment he has made of the likely effect on economic growth in Scotland of the programme of expenditure reduction announced on 24 May 2010.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
Dealing with the deficit and continuing to ensure the economic recovery is the most urgent issue we face. We must tackle the deficit to restore confidence in our economy and support the recovery.
Mr Hamilton
Next week the Under-Secretary and his Liberal colleagues will be making massive cuts throughout the United Kingdom. When he has his first meeting with the First Minister of Scotland, could he explain why, when the Scottish Government have got a substantial increase in the amount of money they are receiving this year, they are overseeing thousands of cuts throughout Scotland? Will he do what I think he will do, which is to roll over whenever the First Minister wants him to?
David Mundell
I thank the hon. Gentleman for his, as usual, spirited question. I am sure he will be in agreement with the Scottish Parliament Finance Committee, which called on the Scottish Government to show far greater leadership by discussing in more open and realistic terms the impact that the cuts will have and the options that are available to deal with those cuts.
Mr Alan Reid (Argyll and Bute) (LD)
I warmly welcome the Minister to his new post.
It is really important for economic growth in remote and rural areas to ensure that businesses, particularly small businesses, in such areas have access to broadband. What will the Government be doing to ensure that broadband is rolled out to the whole country, including remote and rural parts of Scotland?
David Mundell
I thank the hon. Gentleman for his warm welcome. He will already know that the Secretary of State for Culture, Olympics, Media and Sport has set out his clear objective of turning Britain into a digital economy. The hon. Gentleman specified with clarity the needs of rural areas, for which the Secretary of State and I will continue to fight within Government.
Mr Ian Davidson (Glasgow South West) (Lab/Co-op)
I congratulate the new Ministers on taking office. However, I draw to the House’s attention the fact that they are huddled together in one section of the country; I hope that they will, at times, travel out to look at other parts of the country, including my own constituency.
What actions have been taken so far to ensure that any expenditure reduction does not result in a cut or a delay in the aircraft carriers upon which so much of the economy of the west of Scotland, and Scotland as a whole, depends?
David Mundell
I congratulate the hon. Gentleman on his elevation to the chairmanship of the Scottish Affairs Committee, on which I was pleased to serve with him. I am sure that he will bring his own distinct style to the Committee’s proceedings.
As the hon. Gentleman will know, this Government’s position on the aircraft carriers is, despite attempts to suggest otherwise, no different from that of the previous Government. There is to be a strategic defence review. The nuclear deterrent is excluded from that review, and it would be wrong to prejudge the review in any other way, other than to say that sea-borne defence is obviously very important to this country.
Richard Ottaway (Croydon South) (Con)
3. What recent discussions he has had with the First Minister on implementation of the recommendations of the final report of the Commission on Scottish Devolution.
Miss Anne Begg (Aberdeen South) (Lab)
5. When he expects to bring forward proposals to implement the recommendations of the final report of the Commission on Scottish Devolution.
The Secretary of State for Scotland (Michael Moore)
I have had a positive dialogue with the First Minister on a number of subjects, including the Government’s commitment to implementing the recommendations of the Commission on Scottish Devolution. On the question of timing, I have asked officials to work for the autumn introduction of a Bill to take forward legislative proposals, with non-legislative recommendations taken forward on a similar timetable.
Richard Ottaway
Is my right hon. Friend aware of the growing concern at the disparity in public services between England and Scotland? If he wants to retain support for the Union in England, he will have to address this sooner rather than later. Will he set out a timetable to deal with these financial disparities now?
Michael Moore
May I congratulate the hon. Gentleman on his new position as Chair of the Foreign Affairs Committee? I am sure that that will be a very interesting and challenging role for him to fulfil, and I wish him all the best with it.
The Commission on Scottish Devolution was set up with the remit of ensuring that it reviewed how devolution was working for Scotland, and particularly whether it was serving the interests of the people of Scotland. It was designed to increase the financial accountability of the Scottish Parliament, and thereby the Scottish Government, and also to secure the Union. On two of those three counts, I am sure that the hon. Gentleman would agree that it is a very well-focused commission. I look forward, later this year, to introducing the proposals that I have set out; we are determined to get on with that as quickly as possible.
Michael Moore
I congratulate the hon. Lady on her new position as Chair of the Select Committee on Work and Pensions and wish her all the best. Clearly, that will be an important part of Government policy and the Committee will be an important place for debate.
The Calman proposals envisage that at some point in future, a Secretary of State for Scotland will no longer be required. The hon. Lady knows that that was a part of Liberal Democrat policy for a long time, but right here and now the position is important, particularly in delivering that legislation and in focusing on the economy, so it holds.
Iain Stewart (Milton Keynes South) (Con)
Does the Secretary of State agree that the fiscal relationship between Scotland and the United Kingdom as a whole is more complex than just the Barnett formula or crude overall spending-per-head figures, and that great care should be taken in any review to consider all aspects of the fiscal relationships between all parts of the UK?
Michael Moore
I agree with my hon. Friend, and that is perhaps a broader discussion we can have with some of our colleagues over the next little while. The Commission on Scottish Devolution looked exhaustively at fiscal relationships and the need to ensure not only greater financial accountability but the ongoing equity and stability of finances. All those strands together mean that we have a good package which, under the proposals in the Bill, will improve Scotland’s accountability and the devolution settlement.
Mr Jim Murphy (East Renfrewshire) (Lab)
I welcome the Secretary of State to his first Scotland Office questions. Of course, it is a very big day for him: it is his 16th day in office, which is exactly the length of time his predecessor survived in the job. I hope the rest of today goes well for him and that he is still here tomorrow. I have always got on very well with him. In fact, I was delighted, just before the election, to meet a delegation that he led, pleading for the extension of the future jobs fund in his constituency.
On the Calman commission, the right hon. Gentleman has previously argued for the abolition of the Scotland Office. When did he change his mind?
Michael Moore
I thank the right hon. Gentleman for his typically generous welcome. I am happy to confirm that we were able to work very productively across party lines in the last Parliament, but may I just correct him on a matter of fact? When I went to see him with that delegation, the focus was on bank lending, on which the previous Government, frankly, did not have a good record. If he wishes me to remind him of the specific issues that were raised by those four companies, I would be happy to do so, but I shall not detain the House on that now.
On the position of Secretary of State for Scotland, I am not changing Liberal Democrat policy one bit—it is eventually to see the position abolished. However, in the course of getting the coalition agreement together, and recognising the exciting opportunity to get this settlement through and deliver improvements to Scottish devolution, I was very happy to support the continuation of the office, not least because the economic legacy of the previous Government, of whom he was a member, is something that we seriously need to tackle.
Mr Murphy
I again welcome the right hon. Gentleman to his position. It is clear that he is one of a minority in the Cabinet and may from time to time find it difficult to have his voice heard—he is, of course, one of the few non-millionaires sitting around the Cabinet table.
Turning to the success of the Calman commission, should there not be an independent commission to look into the abolition of the future jobs fund? Will the right hon. Gentleman support an independent commission, perhaps to be chaired by Sir Ken Calman, on the impact of the shameful decision of a gang of millionaires to turn their backs on the unemployed of Scotland?
Michael Moore
Mr Speaker, you will not be surprised that I reject the right hon. Gentleman’s analysis of the situation. Like him, I care very deeply about unemployment, not least among young people, in Scotland and anywhere else in the United Kingdom. The reality, however, is that the future jobs fund was set up on an unsustainable basis. We need to ensure that we get a sustainable basis for the future of youth unemployment support. Those proposals will come forward in very close order. In the meantime, before he sets up too many scare stories, let us remember that existing bids will be honoured under the future jobs fund.
Mr Speaker
Order. We really do need a bit of order in the House. There are far too many private conversations taking place. It is a very unattractive spectacle so far as those outside the Chamber are concerned.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
All Members of this House share the sense of shock and disbelief at the tragic events that unfolded in Cumbria on 2 June. The hon. Gentleman must have felt this more than most given his close personal associations with Whitehaven, and I personally offer my condolences to him and to the families that have been so cruelly affected.
In Prime Minister’s questions on 3 June, the Prime Minister confirmed that the Association of Chief Police Officers would be supporting a peer review, to be conducted by national police experts, on firearms licensing, the police firearms response and firearms tactics. Firearms legislation is a reserved matter. As the Home Secretary told the House in her statement on 3 June, we will await the police report before we embark on and lead a debate about the gun laws across Great Britain.
Mr Speaker
Order. We must now speed up. Some of these answers are simply too long and it will not do.
Thomas Docherty
I thank the Minister for his kind words and welcome him to his new post. The House may wish to note the support given by Scottish police forces to the Cumbria constabulary in the immediate aftermath of the incident. Will he agree to meet a cross-party delegation from Scotland once ACPO and its counterparts in England and Wales have made their submission to the Home Office, so that we can convey the very strong feelings of the people of Scotland about firearms legislation?
David Mundell
We are all proud of the efforts of officers from the Dumfries and Galloway police force and others in Scotland after the events in Cumbria. I will meet the hon. Gentleman’s delegation.
Sir Menzies Campbell (North East Fife) (LD)
Perhaps I should declare an interest as the holder of a shotgun licence, for sporting purposes only.
If any question were to arise of separate legislation for Scotland, would the Minister undertake to consider the difference between the sufficiency of existing legislation and the extent to which it is properly enforced? Further, in view of the geographical position of his constituency and that of his colleagues, will he take account of the considerable cross-border traffic in sporting activities involving firearms?
David Mundell
I shall most certainly take into account the issues that the right hon. and learned Gentleman has raised. He will, however, be aware that the Calman commission has recommended that the regulation of air guns be transferred to the responsibility of the Scottish Parliament, and the Government are committed to doing that in the Bill that we will bring forward in the autumn.
Mary Macleod (Brentford and Isleworth) (Con)
6. What steps he plans to take to ensure a stable economic environment for businesses in Scotland.
The Secretary of State for Scotland (Michael Moore)
Tackling the budget deficit and creating a fairer and more balanced economy will ensure a stable economic environment for businesses in Scotland.
Mary Macleod
Under the last Government, the Scotland Office’s attempts to help to maintain a strong economic environment in Scotland had something of a credibility problem. What is my right hon. Friend doing to dispel the myth promoted by his predecessors that the level of Government borrowing is somehow unconnected to the level of interest rates and taxation?
Michael Moore
The hon. Lady makes an important point. We must not lose sight of the fact that the deficit left behind by the previous Government was £155,000 million. We have to establish our credibility not just with the people of Britain, but with the international financial markets. If we do not, we will see higher interest charges that will bear down on the level of public services that we can afford and affect the pockets of everyone in Scotland, both businesses and individuals. We have to tackle that urgently, and I am determined that we will do so.
John Howell
I am sure the Secretary of State would agree that the crisis in the financial sector was especially detrimental to the economic stability of Scotland. Will he now confirm that the Scotland Office will no longer issue press releases saying that it is taking advice from Sir Fred Goodwin, and will take advice from a more representative group of Scottish financiers?
Michael Moore
The hon. Gentleman is correct to highlight the important place that financial institutions play in the Scottish and United Kingdom economy. I assure him that I will be taking as broad a range of advice on these subjects as necessary. Indeed, I am already making early contact with some of the largest financial institutions in the country, including RBS and HBOS.
Stewart Hosie (Dundee East) (SNP)
I welcome the Secretary of State to his new job. On a stable economic environment, one of the key issues is business cost stability, and the area that businesses find most difficult is that of fuel and haulage costs. Can he confirm, therefore, that it remains the policy of at least the Conservative side of the coalition to introduce a fair fuel stabiliser or fuel duty regulator to smooth out the spikes in the cost of fuel and bring some cost stability to haulage for businesses throughout Scotland?
Michael Moore
I thank the hon. Gentleman for his opening remarks. He will understand, I am sure, that I am not in a position to pre-empt, and have no intention of pre-empting, the Chancellor’s statement introducing the Budget next week. The hon. Gentleman’s representations, and those of others, are among the many being received by the Treasury and the Scotland Office, and I am sure that he will pay attention when the Budget is announced next week.
Ann McKechin (Glasgow North) (Lab)
I welcome both right hon. Gentlemen to their new positions in the Scotland Office. Given the unique position of the Scottish media and the Government’s disastrous cancellation of the tendering process for provision of local news on Scottish television, despite the winners having already been announced, what discussions has the Secretary of State had with the Secretary of State for Culture, Olympics, Media and Sport about the threat now posed to news on STV?
Michael Moore
I thank the hon. Lady for her initial comments. An independently financed news consortium was another idea that on closer scrutiny did not have the financial backing to make it sustainable, either through the pilot stage or in a more general process. I have spoken to members of the consortium, and my right hon. Friend the Under-Secretary has spoken to representatives from STV. We will work with them and others in Scotland to ensure that we get the right local news across the country.
Jim Sheridan (Paisley and Renfrewshire North) (Lab)
8. What recent discussions he has had with ministerial colleagues on the support available for manufacturing in Scotland.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
My right hon. Friend the Secretary of State has made it a priority to speak to a number of key individuals in the business sector in Scotland to get an update on the main issues affecting them.
Jim Sheridan
The Minister will be aware of the Dyson report commissioned by the Conservative party in March. It contained many important ideas, such as building esteem for science, engineering, and research and development, and investing in high-tech start-ups. It also highlighted the importance of projects such as those for nuclear and offshore wind power, and, from a Scottish perspective, high-speed rail. Will the coalition Government be implementing any of those proposals, and if so, when?
David Mundell
The hon. Gentleman was a strong supporter of Lord Myners and will know therefore that the latter said:
“The Government cannot create jobs. The Government can create an environment that is conducive to the creation of jobs”.—[Official Report, House of Lords, 8 June 2010; Vol. 719, c. 625.]
That is the priority of this coalition Government.
Mr Adam Holloway (Gravesham) (Con)
9. What recent discussions he has had with ministerial colleagues on Scotland’s future energy needs.
The Secretary of State for Scotland (Michael Moore)
My colleagues and I are fully committed to ensuring that Scotland is able to continue to play an important role in meeting the UK’s aspirations for climate change and security of supply.
Mr Holloway
Can my right hon. Friend give us an assurance that Scotland’s energy capacity will remain at the forefront of global renewable advances?
Mr Brian H. Donohoe (Central Ayrshire) (Lab)
My constituency has three of the five biggest users of energy. Does the Secretary of State agree that the only solution is nuclear power?
Michael Moore
As I said earlier, the Government have set out a clear policy on their energy strategy, and arrangements are in place to ensure that we have diverse sources of supply and security for the future.
Andrew Rosindell (Romford) (Con)
10. What recent discussions he has had with ministerial colleagues on measures to reduce the level of economic inactivity in Scotland.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
The Government have already announced their plans for a radical reform of the welfare-to-work system and the implementation of the programme, which among other things will tackle the issue of economic inactivity.
Andrew Rosindell
The Minister will have noted the comments of Lord Myners, who said that it was wrong for the previous Government to create jobs themselves, rather than creating the conditions for business to create those jobs. Will he encourage the Scottish trade unions to take the same attitude?
David Mundell
I am sure that trade unions in Scotland will share the Chancellor’s view that we are all in this together.
Jim McGovern (Dundee West) (Lab)
May I, too, welcome the Secretary of State to his new post? I am sure he is aware that his predecessor in the previous Government visited my constituency on a number of occasions to see at first hand the importance of the computer games industry in Dundee. The former Chancellor gave a commitment in his Budget to tax breaks for that industry. Can the Minister guarantee that the Government of whom he is now a member will honour that commitment?
Mr Speaker
Order. If the Minister could hear that, he has very good hearing. May I make an appeal to the House? I know that it is in a state of eager anticipation of Prime Minister’s questions, but it is very unfair to the Member on his or her feet, and to the Minister. Let us have a bit of order. That is what the public expect.
David Mundell
Like the Secretary of State, I do not want to pre-empt next week’s Budget, but I am sure that the Chancellor will have heard the hon. Gentleman’s representations.
The Prime Minister (Mr David Cameron)
I am sure that the whole House will wish to join me in paying tribute to the Royal Marine of 40 Commando who died at the Queen Elizabeth hospital in Birmingham on Monday from wounds sustained in Afghanistan, and to the two soldiers from the 1st Battalion the Duke of Lancaster’s Regiment who died yesterday. We should send our sincere condolences to their families and their friends. We should also pay tribute to the exceptional work of our armed forces serving in Afghanistan and, perhaps today in particular, to the highly skilled doctors and nurses who work alongside them, as well as to those who treat the injured personnel back in the UK.
This morning I had meetings with ministerial colleagues and others. In addition to my duties in the House, I shall have further such meetings later today.
Philip Davies
Does my right hon. Friend accept that the millions of people who voted Conservative at the last election in order to make him Prime Minister did not do so in order to see a reduction in the number of people sent to prison or to see those criminals given softer sentences? If he really wants to reduce the budget of the Prison Service, may I suggest that he starts by taking Sky TV away from the 4,000 prisoners who enjoy that luxury in their cells?
The Prime Minister
May I thank my hon. Friend for that helpful suggestion? He knows that I share his views about the need for a tough response to crime. The challenge is going to be delivering that tough response at a time when the last Government left us absolutely no money. What I would say to him is that we have to address the failures in the system: the fact that half of all prisoners are on drugs; the fact that more than one in 10 are foreign nationals who should not be here in the first place; and the fact that 40% commit another crime within one year of leaving prison. That is the record of failure that we have inherited, and it is the record of failure that we have to reform.
Ms Harriet Harman (Camberwell and Peckham) (Lab)
I join the Prime Minister in paying tribute to the Royal Marine of 40 Commando who died on Monday and to the two soldiers from the 1st Battalion the Duke of Lancaster’s Regiment who died yesterday. We honour their sacrifice, and we remember all our servicemen and women who are fighting so bravely for our country.
Although this morning saw the unemployment claimant count fall, unemployment is still too high. Behind the figures are real people and real concerns. Can the Prime Minister promise that none of the policies that he will put in his Budget next week will put more people out of work?
The Prime Minister
First, I agree with the right hon. and learned Lady that any rise in unemployment is a tragedy, not least for those people desperately looking for work who want to put food on the table for their families. The figures this morning give a mixed picture. On the one hand, the claimant count is down; on the other hand, the International Labour Organisation measure of unemployment is up by 23,000. What I can say to her is that we will bring in our Work programme as soon as we can, which will be the biggest, boldest scheme for getting people back to work, and everything that will be—[Interruption.] Hon. Members should remember why we have had record unemployment in this country: because of the record of failure that we inherited. What I can tell the right hon. and learned Lady is that everything that we do in the forthcoming Budget will be about giving this country a strong economy with sustainable public finances and clearing up the mess left by the person sitting next to her, the right hon. Member for Edinburgh South West (Mr Darling).
Ms Harman
In fact, ILO unemployment is down on last month, and the Prime Minister should welcome that. He has criticised our plans, but the Office for Budget Responsibility says this week that, under Labour’s plans, unemployment is set to fall. Will he promise that he will not do anything in his Budget next week that will cause unemployment to rise? We are talking about his policies in his Budget.
The Prime Minister
First, the right hon. and learned Lady is just wrong about the figures. The ILO figures are up, and the claimant count is down—
The Prime Minister
Yes, they are; if she looks at the figures, she will discover that. She asked about the Budget. I have to say that I am still waiting for the Budget submission from the Labour party—[Interruption.] Let me tell hon. Members why. Before the last election, Labour set out £50 billion of spending reductions, including £18 billion of reductions in capital spending, but it did not set out where one penny piece of that money was coming from. So, while Labour Members are looking forward to the Budget next week and asking what we are going to do, perhaps they could have the decency to tell us what they would have done.
Ms Harman
The Prime Minister did not listen to what I said about ILO unemployment, which is that it is down on last month, and he did not answer the question either. He has already cut the future jobs fund, and he will not guarantee to drop policies that would push unemployment up. He talks about the deficit, but how does putting more people on the dole help to get the deficit down?
The Prime Minister
Perhaps the right hon. and learned Lady should consider this statement about the importance of sorting out the budget deficit—[Interruption.] Hon. Members ought to listen to this:
“Public finances must be sustainable…If they are not, the poor, the elderly, and those on fixed incomes who depend on public services will suffer most.”—[Official Report, 2 July 1997; Vol. 315, c. 303.]
Who said that? It was the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown), when he used to talk some sense, in the old days.
Ms Harman
As the Prime Minister is talking about new politics and transparency, will he confirm that the Office for Budget Responsibility has forecast that, under the plans that we put in place, unemployment and borrowing will be lower than we forecast in our Budget, not only this year but next year and the year after? Will he confirm that, and will he welcome it?
The Prime Minister
First, should the right hon. and learned Lady not welcome the fact that these things are now independently determined, rather than fiddled in the Treasury? What the Office for Budget Responsibility shows is that the structural deficit is going to be £12 billion higher, and that the growth forecast that the Chancellor of the Exchequer produced at the time of the Budget was a complete fiction.
Ms Harman
I can answer the Prime Minister’s question, although, to be fair, he is supposed to be answering mine. Yes, I do support the OBR, but he will not say whether he welcomes the forecast that I set out earlier. It is clear what he is doing: he is talking down the economy and the public finances in order to soften up the public for the cuts that he wants to make. Does he not realise that, in doing that, he is also undermining business confidence? How can that be right?
The Prime Minister
What the right hon. and learned Lady and other Labour Members need to remember is this: never mind talking the economy down, they did the economy down. They left this country with a £155 billion deficit—the biggest deficit in our peacetime history. They are the ones who let the banks go rip. They told us that they had abolished boom and bust, yet they gave us the biggest boom and the biggest bust. They were the ones who told us we were going to lead the world out of recession; our recession was longer and deeper than others. They have not told us about one single penny of the £50 billion that they were going to cut—not one penny. Do you know where they ought to start? Why not start with an apology?
Ms Harman
If the Prime Minister thought that our spending plans were so bad, why did he back them right up until the end of 2008, praising them as “tough”? One minute he is praising them, then he is calling them reckless. This is not so much magic numbers as the magic roundabout that he has been on. We all agree that the deficit needs to come down, but will he promise that in the Budget next week he will not hit the poorest and he will not throw people out of work? Does he agree with us that unemployment is never a price worth paying?
The Prime Minister
The figures were wrong, and the jokes were not much good either. Never mind the magic roundabout, what we are all enjoying on the Government Benches is the Labour leadership election, although it is by day beginning to look more like a Star Trek convention—beam me up! What the right hon. and learned Lady has to answer is this: before the election, her Government set out £50 billion of cuts, but not a single penny was aligned to a single programme—not one pence of the £18 billion they were cutting from capital spending was aligned to one single bit of capital expenditure. Before she starts challenging us about cuts, they should first of all apologise for the mess they have left; second of all, tell us where the cuts were going to come to under their Government; and third of all, recognise that the responsible party, in coalition, is dealing with the deficit and the mess that they left behind.
Sir Alan Haselhurst (Saffron Walden) (Con)
Despite the huge satisfaction felt in my constituency at the Government’s decision not to proceed with the second runway at Stansted airport, is my right hon. Friend aware that blight and uncertainty still overhang the communities closest to the airport? Will he look to see if other measures can be taken to provide them with longer-term assurance?
The Prime Minister
First, may I say what a pleasure it is to see my right hon. Friend being able to speak about these issues for the first time in many years. I am sure he will do so often and with great power from the Back Benches. He is right to say that we are very clear in the coalition agreement about Stansted airport. I hope that removes some of the blight and uncertainty; I will certainly bear in mind what he had to say.
Andrew Miller (Ellesmere Port and Neston) (Lab)
Q2. During the general election, the Conservative party distanced itself from remarks made by the right hon. and learned Member for Rushcliffe (Mr Clarke) when he spoke about Government aid and said that it had nothing to do with Vauxhall. Will the Prime Minister take this opportunity to remove the uncertainty not only for Vauxhall but for Sheffield Forgemasters and all the other companies that are waiting for support in properly constructed agreements?
The Prime Minister
Everyone wants to see Vauxhall succeed; it is a very important company, employing many people in this country, not least in the hon. Gentleman’s own constituency. As he knows, a £270 million Government loan guarantee to support GM Europe was announced on 12 March 2010. We are reviewing commitments made since 1 January 2010. Projects that are good value for money and consistent with the Government’s priorities will go ahead. [Interruption.] Let me say to Labour Members who are shouting that we have to be clear that there were spending announcements made by the previous Government before the election that need to be reviewed. To take just one example of one scheme operated by Lord Mandelson’s Department—the so-called strategic investment fund: when we looked at the money provided for specific projects, we found that over two thirds of the constituencies involved were marginal Labour seats. So it is right to examine these, but I say to the hon. Gentleman that proper grants properly made for proper reasons will go ahead; fiddled grants for political reasons should not.
Stuart Andrew (Pudsey) (Con)
The 16-year-old son of my constituent, Lorraine Fraser, died after a vicious multiple knife attack incident six years ago. One of the murderers is trying to use the law to reduce his tariff after serving only five years, and another avoided conviction altogether by fleeing the country. Will the Prime Minister agree to look into this case on behalf of my constituent and meet her to hear about her plight and about the excellent work she is doing to defeat knife crime in this country?
The Prime Minister
I hear what my hon. Friend says, and I would be happy to meet him and his constituent. We need to take knife crimes in this country incredibly seriously: there has been a huge increase in the carrying of knives, and we must put a stop to that. On lenient sentences, I am not convinced that the power introduced some 20 years ago to allow the Attorney-General to appeal against lenient sentences is used enough. We need to look at that again and ensure that in cases in which people feel that a lenient sentence has been put in place, there is an opportunity to increase it.
John Woodcock (Barrow and Furness) (Lab/ Co-op)
Q3. The defence contracts for Astute class submarines signed in March were long negotiated and are essential for our security and for thousands of manufacturing jobs in my constituency and across the UK. Will the Prime Minister honour them?
The Prime Minister
First, may I welcome the hon. Gentleman and say that I know how much his constituency depends on the work going on in the submarine yards in Barrow, which I have visited and where I have seen the building of Astute class submarines and the submarines carrying our nuclear deterrent? I know how important that is, but a defence review is under way, and it must include the Astute class submarines—[Interruption]. To those Labour Members who are calling out, let me say that the Labour party was itself committed to a defence review. We asked whether it included everything—even aircraft carriers—and the answer came back yes. It is no good Labour Members bickering now that they are in opposition; it is right to have a defence review and that we consider such matters. I know how important submarine building is to Barrow and to the defence of the nation.
Mr David Evennett (Bexleyheath and Crayford) (Con)
Q4. Labour Members might revere regional development agencies, but is my right hon. Friend aware of the considerable amount of money wasted by some RDAs, especially on unnecessary expenditure on entertainment? Will he confirm that, to get better value for taxpayers’ money, he will take action on RDAs?
The Prime Minister
My hon. Friend is right, and I know that a lot of argument and discussion is going on about regional development agencies. The figures about how much money has been wasted, however, should be more widely shared. The East Midlands Development Agency paid more than £300,000 for offices in north America. The Northwest Development Agency shared an office in Newport Beach. One NorthEast spent money on offices in China, Japan, Korea and Australia. The chairman of the South East England Development Agency spent £51,000 on taxis and executive cars in one year alone. We need proper control of costs and spending—there has not been any for the past 13 years, and there sure is going to be under this Government.
Margaret Hodge (Barking) (Lab)
May I tell the Prime Minister about my constituent, Nikki Blunden, who is 37, has a son aged four and is dying of cancer. Her consultant wants to prescribe the new drug Lapatinib, which could prolong her life. Last week, the National Institute for Health and Clinical Excellence deemed the treatment not to be cost-effective. Will the Prime Minister stick to his promise not to hide behind NICE, and ensure that the primary care trust funds forthwith this NHS treatment? Nikki Blunden cannot wait; I ask the Prime Minister to act.
The Prime Minister
I am grateful to the right hon. Lady for asking that question. My heart goes out to her constituent, Nikki Blunden. We want to see these cancer drugs get to patients more quickly, without the bureaucratic wheels taking so long to turn. That is why we are establishing the cancer drugs fund, and I will discuss with my right hon. Friend the Secretary of State for Health how quickly that can be done. If possible, I want it to be done this year rather than next year. If it can be done, it will be, and if drugs can be got to people like the right hon. Lady’s constituent—we all have constituents in such a position—I will do everything that I can to make that happen.
Mr Douglas Carswell (Clacton) (Con)
Q5. The Prime Minister knows that I am always and everywhere for referendums. However, will he tell the House why he is planning a referendum on the alternative vote, which was not in the manifesto of either coalition party, but not a referendum on European integration, which all three main parties were recently promising?
The Prime Minister
What I can promise my hon. Friend is that we will have such legislation on the referendum lock, so that it will not be possible in future for a British Government to pass powers from Westminster to Brussels without asking the British people first. That is absolutely right. The referendum on the alternative vote was part of the coalition agreement, and he will be free to campaign on whatever side of the referendum he wants. However, the referendum was part of the agreement that put together this Government, who, I believe, are rolling up their sleeves and sorting out the country’s problems.
Jim Dobbin (Heywood and Middleton) (Lab/ Co-op)
Q6. About 1.5 million people suffer from involuntary tranquilliser addiction as a result of medical prescribing, and it completely ruins their lives. Will the Government consider investing in cost-effective, supportive, long-term withdrawal treatment programmes to enable them to lead normal lives, come off benefits, and go back to work?
The Prime Minister
Let me praise the hon. Gentleman for his interest in the work that is being done. I know that he is chairman of the all-party group that deals with this extremely difficult issue. The last Government set up a review of addiction to prescription and over-the-counter medicines. We are waiting for the report to be published, and will study it carefully when it is.
Let me make two points. First, I think that there is a problem in our national health service more generally, in that we spend too much time treating the symptoms rather than necessarily dealing with the causes. We could probably reduce the level of painkillers and tranquillisers if we did more—through physiotherapy and other therapies—to deal with the problem in the first place. Secondly, all addictions need proper attention, and proper treatment and therapy, to rid people of their addictions, whatever they happen to be. I am sure that the report will mention that.
Sir Alan Beith (Berwick-upon-Tweed) (LD)
Q7. Will the Prime Minister respond positively to the uplands inquiry by the Commission for Rural Communities—which reveals the great value and potential of magnificent hill areas such as ours in Northumberland—by stressing the need to ensure that hill farmers have an adequate income, and that there are rented homes, apprenticeships, and services such as broadband to enable young people to stay in those areas?
The Prime Minister
I will certainly look carefully at the report. I have every sympathy with what the right hon. Gentleman has said. Upland landscape is as beautiful as it is because it has been farmed for centuries, and we need to recognise the connection between beautiful landscape and active farming. We want our countryside to be a living, working countryside, not a museum.
The right hon. Gentleman mentioned housing. We must also recognise that the top-down target system was not working. Our plans in the coalition agreement to increase the ability of communities, including villages, to decide whether they want to put in extra homes is a good way of helping to keep the pub, the post office, and the local shops and schools open, and I hope we can proceed with that work.
Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC)
I am sure that, even as we speak, the Prime Minister and his team are seeking to make savings and possibly cuts, hopefully without affecting front-line services. May I commend to him one way of saving £7.2 million a day? Bring the troops home from Afghanistan.
The Prime Minister
I have to say to the hon. Gentleman that I just do not agree with him. I think that if we brought the troops home precipitately—if we did it straight away—not only would we let down our NATO allies, not only would we let down the Afghan people, but we would create circumstances in which the Taliban would return, and the danger of terrorist training camps in Afghanistan would come straight back.
I know that what we are doing is dangerous and difficult, and that it is costing us dearly. I am, of course, acutely aware of that. However, I think that we must put our effort and our shoulder behind the wheel of the Obama-McChrystal plan to ensure that it works as well as it can, and accompany that military surge with a political surge. We need to seek a political settlement to get Taliban fighters to put down their arms and reintegrate into Afghan society. That is the way in which to create some stability in Afghanistan—never a perfect democracy, but some stability—in which event our troops can come home with their heads held high.
Miss Anne McIntosh (Thirsk and Malton) (Con)
Q8. Will the Prime Minister join me in paying tribute to all who work for the health service, but will he also examine the circumstances in which patients are often discharged from hospital only to be readmitted very soon afterwards? The assessment for continuous health care has become something of a postcode lottery. Will the Prime Minister examine that as well, to ensure that such care is paid for on the basis of clinical need?
The Prime Minister
Thank you, Mr. Speaker; the one answer that I will give is this. I know that there is a big problem with hospitals discharging patients, sometimes to meet their own targets—including financial targets—without thinking of the longer-term consequences if those patients have to return. That is why my right hon. Friend the Secretary of State for Health has announced that hospitals will be responsible for patients not just during their treatment but for the 30 days following their discharge, so that we can better link health and social care to ensure that people leave hospital at the right time, in the right way, and for good.
Mr Stephen Hepburn (Jarrow) (Lab)
Q9. Siemens is proposing to close Trench UK in my constituency and to transfer its production to France and Germany, despite the fact that Trench UK has a full order book, healthy profits and is exporting all over the world. It is a first-class product. Would the Prime Minister meet me so that we can discuss that illogical decision which could lose the UK a jewel in manufacturing?
The Prime Minister
I would certainly meet the hon. Gentleman. I know how frustrating this can be; Siemens is a big investor in my constituency, too. The jobs that he is speaking about are exactly the sort of high-tech, high-skill jobs that we want to keep in this country. Therefore, I will certainly meet him, and we will do what we can in the Budget to ensure that we have in this country a tax regime, support for apprenticeships and support for training that will want to make businesses locate, stay and invest in Britain.
Mr Adam Holloway (Gravesham) (Con)
Q10. Every household in Gravesham has inherited a sort of second mortgage of debt. Can the Prime Minister give us some idea of the level of debt per household across the country?
The Prime Minister
My hon. Friend is entirely right that every single person in this country is now carrying £22,000 of debt because of the mess that the last Labour Government left us. The fact is this: if we do not do something about it, by the end of this Parliament, we will be paying £70 billion in debt interest. That is more than we spend on schools and more than we spend on defence. It would be a tragic waste of money. That is why, however painful it is, we have to get to grips with the deficit that we were left by the last Labour Government.
Barry Gardiner (Brent North) (Lab)
Can the Prime Minister explain why the changes to local government funding last week mean that, in Witney in Oxfordshire, people will see an uplift of 1.7%, while children in Brent will see a loss from their education budget of £1.88 million? Can it have anything to do with last week’s statement by the Minister with responsibility for local government, the Under-Secretary of State for Communities and Local Government, the hon. Member for Bromley and Chislehurst (Robert Neill), who said:
“Those in greatest need ultimately bear the burden of paying off the debt”?—[Official Report, 10 June 2010; Vol. 511, c. 450.]
The Prime Minister
I am sure that the hon. Gentleman will welcome the fact that we are going to introduce the pupil premium, so that the money follows our country’s poorest children to the schools that they go to. That is what is going to happen. That is what he should support and I will look forward to him supporting it when it comes.
Mr Graham Brady (Altrincham and Sale West) (Con)
Q11. As the Prime Minister strives to restore sanity to our national finances, will he give a word of reassurance that the Budget next week will seek to encourage and support those who save and provide for their own future?
The Prime Minister
My hon. Friend is entirely right. We have got to make sure that, in what we do, we help those who try to do the right thing, to save and to look after themselves and their families. The first thing that we have to do is keep control of inflation, keep the Bank of England independent and ensure that the Budget supports the tough approach on inflation, which is the worst thing for savers. The second thing that we can do is ensure that we do not discourage saving by having so many people reliant on a means test. That is why we are committed to linking the state pension back to earnings.
There are no easy ways of reducing the deficit. Some people believe that it can be got all from one area or all from another. I am afraid that it is going to be a difficult task. We will do everything we can to take the whole country with us. We will need to have a responsible debate about how we do it, but it has to be done for the good of our country.
Luciana Berger (Liverpool, Wavertree) (Lab/ Co-op)
Q15. In the past week, I have been contacted by students and parents in my constituency who are devastated to have been told that geography and politics courses at Liverpool John Moores university have been cancelled from September, giving them less than three months to make alternative arrangements. What assurances can the Prime Minister give my constituents that cuts to higher education will not affect students?
The Prime Minister
I welcome the hon. Lady to her place. The assurance I can give her is that we are going to increase the number of university places by 10,000 in the coming year, because we want to see higher education expand. The other assurance I can give her is that we are committed to the Browne review that the previous Government set up, on an all-party basis, to look at how we can ensure that higher education is affordable both for the young people going into higher education and for our country as a whole.
Harriett Baldwin (West Worcestershire) (Con)
Q12. Can I praise the Prime Minister for his staunch support of the NHS and its budget, and use this opportunity to invite him to Malvern to open, some time at his convenience this autumn, our brand-new community hospital?
Mr Speaker
Order. It is not against the rules of the House for a Government Back Bencher to support the Government; it is not that odd.
The Prime Minister
Mr Speaker, we all remember you doing that very well. My hon. Friend’s invitation is a kind one. The commitment that we have made to maintain health spending is very important. I want to see community hospitals and district general hospitals thrive under this Government.
Mr David Lammy (Tottenham) (Lab)
May I invite the Prime Minister to take a trip with me next season from Seven Sisters tube station up to the Spurs ground at White Hart Lane? On that journey he will see a proliferation of betting shops. Will he give local authorities the power to deal with the saturation of betting shops, which are preying on working and poor people?
The Prime Minister
That is another great invitation this afternoon. I say to the right hon. Gentleman that there is a balance to strike. Some of the deregulation that took place was necessary in order not to have over-regulation of these sectors, but yes I think that there is a case for allowing local authorities greater latitude to decide on some of these things. We made that point in opposition, particularly on the issue of lap-dancing clubs, over which local authorities should be given more power and influence. The issue now seems to be being taken up more broadly by Labour Members.