(12 years, 6 months ago)
Commons ChamberRead Hansard Text Read Debate Ministerial Extracts
Stuart Andrew (Pudsey) (Con)
1. What discussions she has had with ministerial colleagues and others on marketing Wales as a destination for foreign business investment.
Karl MᶜCartney (Lincoln) (Con)
3. What discussions she has had with ministerial colleagues and others on marketing Wales as a destination for foreign business investment.
The Secretary of State for Wales (Mrs Cheryl Gillan)
I have regular discussions with ministerial colleagues and others on marketing Wales as a destination for foreign business investment. The recent Select Committee on Welsh Affairs report on inward investment in Wales highlighted a number of important issues, and we are committed to closer joint working with the Welsh Government to deliver more inward investment to Wales.
Stuart Andrew
I am grateful to my right hon. Friend for that answer. One of the best ways to improve foreign investment in Wales is for the UK and Welsh Governments to work more closely together. Does she regret the apparent unwillingness of the Welsh Business Minister to do just that?
Mrs Gillan
As the Welsh Affairs Committee has made clear in the inquiry into foreign direct investment, co-operation between both Governments is considered essential to marketing Wales and for potential investors. However, as economic development is devolved and led by the Labour Government in Wales, I share my hon. Friend’s disappointment that the Business Minister did not give evidence to the Committee. I hope that we can develop a more mature attitude, as FDI projects in Wales have diminished over the years and we need to get them back up, so that we are competing effectively.
Karl MᶜCartney
I thank my right hon. Friend for her earlier answer. Does she agree that it is right to explore investment opportunities in emerging markets? There are markets close to home, such as in the Commonwealth of Nations, which consists of 54 countries and has a population of 3.5 billion-plus, that also offer important investment potential.
Mrs Gillan
The Prime Minister himself has said that he wants
“to link Britain up to the fastest growing parts of the world, because we need to trade and export our way out of our economic difficulties.”
We inherited those from the previous Government. That is why I have taken such a tremendous interest in this area and why I am very pleased that we have now joined up UK Trade & Investment to the Welsh Government. We have offered at least one of UKTI’s investment advisers to work in the Welsh Government offices in Treforest and for there to be two-way secondees between UKTI and the Welsh Government. That is real progress and it shows that we can get our two Governments working together in the interests of Wales.
Ann Clwyd (Cynon Valley) (Lab)
As the Secretary of State knows, good air transport links are essential in attracting business investment to Wales. What discussions has she had with the First Minister and the Welsh Government about improving the links between Cardiff airport and the rest of the world?
Mrs Gillan
As the right hon. Lady knows, I have constant discussions with the First Minister and the Welsh Government, as does the Under-Secretary. We have certainly discussed the links and there has been some discussion of Cardiff airport. I am pleased to say that I have invited the owners of the airport to meet me shortly, because I have been concerned about some of the reports I have heard in the press. We should be trying to talk Cardiff airport up, not down.
Nia Griffith (Llanelli) (Lab)
I certainly welcome the announcement by the Labour Welsh Government that Tata Steel will invest £800 million in Wales, but as the Secretary of State will know Tata bosses have repeatedly said that the prices they have to pay for energy in the UK are simply not competitive when compared with what industry pays elsewhere. What discussions has she had with the Energy Secretary and energy companies to secure a better deal on energy prices for heavy industry to provide an incentive for companies such as Tata to invest in Wales?
Mrs Gillan
One of the first things I did when I was appointed was visit Tata Steel, and I took the Business Secretary, Vince Cable, with me to discuss energy prices. The hon. Lady should know that all the Departments have been focused on the energy-intensive industries because we want to ensure that there are good manufacturing jobs in the future, not just in Wales but elsewhere in the UK. I have read the press release from the Welsh Government and the First Minister and he says that he was told at a meeting in India that £800 million has been approved over the next five years for investment in Tata Steel in Wales. I look forward to seeing the detail, because it seems to be a general announcement at this stage without too much detail attached to it.
Mr Speaker
The Secretary of State was referring to the right hon. Member for Twickenham. We do not name people in this place.
Mark Tami (Alyn and Deeside) (Lab)
2. What assessment she has made of the effect of the Budget on the National Assembly for Wales; and if she will make a statement.
The Parliamentary Under-Secretary of State for Wales (Mr David Jones)
As a result of the Budget the Welsh Government will benefit from an additional £11.7 million over the spending review period. Consequently, they will have received nearly £500 million in additional funding since the spending review in 2010.
Mark Tami
The granny tax, the pasty tax and cutting the top rate of tax for the rich while shutting Remploy factories that give disabled people the dignity of work: those are the priorities of this Government. The caravan tax will hit thousands of hard-working families in Wales, particularly in north Wales. Will the Minister speak to the Chancellor and get him to scrap the caravan tax, rather than sitting on his hands like the hon. Member for Aberconwy (Guto Bebb) did the other evening?
Mr Jones
The hon. Gentleman should not get so aerated. The Government fully recognise the importance of the holiday and touring park sector to the Welsh tourism industry and to the economy of Wales as a whole. Her Majesty’s Revenue and Customs is consulting on the proposals, as he should know, and I hope he will play a part in that consultation, which closes on 18 May.
Jonathan Evans (Cardiff North) (Con)
Will my hon. Friend confirm that the Red Book reveals that although 14 Government Departments will see reductions in spending over the next four years, spending in Wales increases year on year despite the fact that the Welsh Assembly Government underspent by £385 million last year while cutting health spending in Wales?
Mr Peter Hain (Neath) (Lab)
Is it fair that Welsh churches, charities, caravanners, pensioners and almost everybody else will pay more taxes so that millionaires can each pay £40,000 less?
Mr Jones
That is a very strange rhetorical question. The right hon. Gentleman will know that the reduction in the top rate of tax will not take effect until the end of the public spending freeze and it is quite interesting that the Government of whom he was a member did not see fit to increase the rate of tax until a matter of weeks before their last Budget.
Mr Hain
I am amazed that the hon. Gentleman is not ashamed of that impact on some of the most vulnerable in our society. Can we in Wales, through him, apologise to the Secretary of State? We used to think that she was all on her own at sea in the Cabinet, but clearly they are now all at sea together. The Budget omnishambles, Abu Qatada, petrol pump panic—at least Wales has a Labour Government to give us some protection from this Tory-Lib Dem incompetence. At least Wales can reject this disastrous Budget by voting Labour in the council elections next Thursday.
Roger Williams (Brecon and Radnorshire) (LD)
Does the Minister agree that with new law-making powers and a £15 billion budget, the Welsh Assembly Government have both the tools and the money to make a real and lasting difference in Wales?
Mr Jones
Yes, indeed. It is vital, too, that the Welsh Assembly Government work closely with the Government in Westminster for the good of the people of Wales. I very much hope that we will now see a far more joined-up approach taken by the Welsh Assembly Government in that regard.
Nick Smith (Blaenau Gwent) (Lab)
4. What assessment she has made of the treatment of capital allowances in enterprise zones in Wales; and if she will make a statement.
The Secretary of State for Wales (Mrs Cheryl Gillan)
The Chancellor announced funding for enhanced capital allowances in the Deeside enterprise zone in the Budget in addition to the money already provided for enterprise zones in Wales. We are committed to looking at how we can provide these allowances elsewhere but the Welsh Government must develop strong, detailed and robust business cases.
Nick Smith
I thank the Secretary of State for her interest in the Blaenau Gwent enterprise zone. Plans for a motor industry complex there are now at a critical juncture. We need to know if capital allowances can be delivered or if other tax treatments are a better prospect. May I press her for a meeting between developers and the Chief Secretary to the Treasury, so that we can thrash out a solution?
Mrs Gillan
The hon. Gentleman has worked tirelessly for his constituency to develop these proposals for the Ebbw Vale enterprise zone, and I really do congratulate him on that. We have met on other occasions and I have written to him again today, saying that I am very willing to try to secure a meeting with the Chief Secretary to the Treasury, but without a business case the Treasury cannot make any decisions on further enhanced capital allowances. I urge the hon. Gentleman to discuss the subject with the Welsh Government as well as with our Government.
Mr Mark Williams (Ceredigion) (LD)
5. What discussions she has had with ministerial colleagues and others on funding for broadband technology in Wales.
Bob Blackman (Harrow East) (Con)
8. What discussions she has had with ministerial colleagues and others on funding for broadband technology in Wales.
The Parliamentary Under-Secretary of State for Wales (Mr David Jones)
My right hon. Friend the Secretary of State has had, and continues to have, regular discussions with ministerial colleagues, Welsh Government Ministers and other interested parties on the funding of broadband technology in Wales.
Mr Mark Williams
I thank the Minister for that response and congratulate him on his part in securing £57 million for Wales and, of course, the broadband provision for Cardiff. However, on the roll-out of broadband in scattered rural areas, does the Minister share the frustrations of many in my constituency—small business men, and consumers trying to access their bank accounts—at the speed with which that is being delivered in Wales when compared with authorities such as Cornwall, which are speeding ahead?
Mr Jones
As my hon. Friend says, the Government have made available a total of £56.9 million to help bring superfast broadband to Wales. The Welsh Government are working with Broadband Delivery UK on how best to employ the funding, but we are indeed looking to the Welsh Government to make an announcement as to their contribution to speed up the process. I am sure, however, that my hon. Friend will be pleased with the announcement by BT last December that 33 rural communities will have access to faster broadband by this summer, including Aberystwyth.
Hywel Williams (Arfon) (PC)
The South Wales chamber of commerce has called for a more ambitious target for broadband speeds in Wales for 2015, at 50 megabits per second from the previous target of 30. What are the Government doing here, in conjunction with the Welsh Government, to achieve such a target, which could clearly be very beneficial for Welsh business?
Mr Jones
It would indeed be beneficial, and I am sure that the hon. Gentleman will recall that in the Budget a sum of £12 million was made available to help transform Cardiff into a super-connected city, which should result in speeds of between 60 and 100 megabits per second—plus, of course, wi-fi connectivity.
Hywel Williams
Cardiff is not Wales, although some people might be under that misapprehension. Countries such as Finland and Malta have introduced a universal service obligation on internet coverage and connections similar to that for the postal service, to ensure that everybody has equal access to the internet and its advantages, irrespective of location, be that rural or otherwise. Will the Government look into that, and do so in time for the next communications Bill—or perhaps it is something that the Welsh Government can do under the powers set out in part 4 of the Government of Wales Act 2006?
Mr Jones
I quite agree with the hon. Gentleman: Cardiff is not Wales, but he referred specifically to the South Wales chamber of commerce. Indeed, as he knows, it is the ambition of this Government to ensure that superfast broadband is rolled out throughout the United Kingdom by the end of this Parliament, and at the moment we are on track.
Bob Blackman
Broadband suppliers have shown a marked reluctance to invest in Wales. Does my hon. Friend agree that it is important that the people of Wales have the benefit of new technology, and that perhaps the Welsh Assembly might use some of this vast underspend to invest in Wales, so that everyone has the benefit of broadband?
Andrew Selous (South West Bedfordshire) (Con)
6. What recent discussions she has had with ministerial colleagues on encouraging economic growth in Wales.
The Secretary of State for Wales (Mrs Cheryl Gillan)
Economic growth is a key priority for this Government and I have regular discussions with ministerial colleagues on ways to encourage economic growth in Wales. Yesterday I met the business advisory group and heard directly from members how this Government’s growth policies are helping businesses in Wales to face the current economic challenges.
Andrew Selous
Does the Secretary of State agree that the fact that the recent Budget is taking 95,000 people out of tax altogether in Wales is a big boost for business in Wales, as more people will have greater spending power and find it worth their while to be in work?
Mrs Gillan
I agree entirely with my hon. Friend. It must be very good for those people whom we have taken out of tax altogether and the lower paid workers who will benefit from our tax changes, because it will put money directly back in their pockets rather better than the Welsh Labour Government down in Cardiff Bay, under whose auspices council tax has doubled in Wales.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
The Budget included a clear framework for reducing localised pay in the public sector. Considering that there is a direct link between money in people’s pockets and spending in the local economy, how will depressing pay encourage economic growth in the poorest parts of the British state?
Mrs Gillan
When it comes to local pay, our aim is to create a more flexible labour market that is more responsive to the challenging economic conditions we currently face. We want to create more private sector growth and, as a consequence, wealth in Wales and across the UK.
Alun Michael (Cardiff South and Penarth) (Lab/Co-op)
If the Secretary of State thinks this Government are interested in growth, she is living in cloud cuckoo land. Is she not keeping up with today’s news that shows that the Chancellor’s obsessive intention of cutting too deep and too fast is taking us back into recession?
Mrs Gillan
No. I have to say that today’s news is disappointing but not totally unexpected. Britain cannot be immune to what is happening on our doorstep. For example, Italy, Holland, Ireland, Belgium and Portugal are already in recession. But let us remember that since the coalition took office in 2010, more than 630,000 private sector jobs have been created, more than outstripping job losses in the public sector, and private sector employment in Wales rose by 12,000 between quarter 3 in 2010 and quarter 3 in 2011.
Huw Irranca-Davies (Ogmore) (Lab)
7. What recent progress has been made on electrification of the south Wales valley railways; and if she will make a statement.
The Parliamentary Under-Secretary of State for Wales (Mr David Jones)
My right hon. Friend and I are working with the Secretary of State for Transport and Welsh Ministers on the business case for electrification of the south Wales valley lines. We expect to make an announcement in the summer.
Huw Irranca-Davies
My hon. Friend the Member for Blaenau Gwent (Nick Smith) has the lovely Ebbw vale line. I live in the beautiful Llynfi valley and catch the Maesteg to Gloucester train via all points including Cardiff and Newport, a route which sometimes takes me through the delightful constituency of the hon. Member for Vale of Glamorgan (Alun Cairns). All these link even as far west as Swansea. We are all valleys people on valleys rail connections, so when considering electrification for south Wales and the valleys, will the Minister’s definition of south Wales be my definition—the definition of the people of south Wales—because when it comes to electrification, we are all in this together?
Mr Jones
Yes, indeed. We recognise the importance of the electrification of the south Wales valley lines to the economy of the Cardiff city region and wider. The Chancellor of the Exchequer singled out electrification of those lines as a key infrastructure priority in the Budget, and I was delighted that my right hon. Friend the Prime Minister confirmed his personal commitment to that when he visited Wales earlier this month.
Albert Owen (Ynys Môn) (Lab)
9. What recent discussions she has had with the First Minister of Wales on developing rail transport in Wales.
The Parliamentary Under-Secretary of State for Wales (Mr David Jones)
My right hon. Friend has regular discussions with the First Minister about a range of transport issues that affect Wales, most recently last week.
Albert Owen
Has the Wales Office done a study of the impact of High Speed 2 on Wales, and has the Wales Office put the case for improving the lines west of Crewe and line speeds, as well as possible electrification, so that we can have a high-speed Wales?
Karen Lumley (Redditch) (Con)
What discussions has the Minister had with the European Parliament on trans-European network funding to enhance the railways?
Mrs Siân C. James (Swansea East) (Lab)
As we know, economic growth is one of the ways we can improve infrastructure in Wales, but to do so we need a modern railway, and that means electrification as far as Swansea. What impact assessment has been made of the effect on the commuter and holiday trade of rail electrification to Swansea?
Mr Jones
I commend the hon. Lady for her interest in this matter on behalf of her constituents and can assure her that we remain very interested in the electrification of the line and are working closely with the Welsh Assembly Government to develop the business case. [Interruption.]
Mr Speaker
Order. Far too many noisy private conversations are taking place. Let us have a bit of hush for Mr Robert Halfon.
Robert Halfon (Harlow) (Con)
10. What recent assessment she has made of the effect of petrol and diesel prices on the Welsh economy.
The Parliamentary Under-Secretary of State for Wales (Mr David Jones)
The Government recognise that businesses, individuals and families are struggling with the rising cost of fuel, particularly in rural areas. We have eased the burden on motorists by approximately £4.5 billion through the abolition of the fuel duty escalator and the introduction of the fair fuel stabiliser and by cutting fuel duty.
Robert Halfon
I welcome the Government’s cuts in fuel duty, but the market price of oil is still too high, partly because of oil speculation. The United States is bringing in tough penalties for price fixing and market manipulation. Will the Minister urge his Government colleagues to look at this and put pressure on the big oil firms to cut prices at the pumps?
Mr Jones
As I have said, the Government recognise the impact of the rising cost of fuel on people and businesses in Wales. However, it should be remembered that the duty increase that was expected to take place in January this year has been deferred to August and we have cancelled the inflation increase planned for August, which means that there will be just one inflation-only increase this year.
Mr David Hanson (Delyn) (Lab)
Can the Minister tell us the price of a litre of fuel this time last year and today, and is the rise anything to do with the VAT increase that he voted for?
Gavin Williamson (South Staffordshire) (Con)
11. What recent discussions she has had with ministerial colleagues and others on the aerospace industry in Wales.
The Secretary of State for Wales (Mrs Cheryl Gillan)
I have regular discussions with ministerial colleagues and other organisations on a range of issues, including the aerospace industry in Wales.
Gavin Williamson
Does the Secretary of State agree that, while the UK Government have taken a lead in establishing enterprise zones, the onus is now on the Welsh Government to ensure that their enterprise zone for the aerospace industry in St Athan is a success?
Mrs Gillan
My hon. Friend is absolutely right. As far as enterprise zones are concerned, a great deal depends on what the Labour Welsh Government will do, because we have capital allowances for only one enterprise zone, which is already in Deeside. The enterprise zone to which he refers will be crucial to the UK and will secure work on the next generation of aircraft, because some 27,000 large aircraft, worth $3 trillion, will be needed over the next 20 years, around 7,000 new helicopters will be required within the next decade and there is a huge potential future market in unmanned air vehicles, and I want us to benefit from that demand in the aerospace business in Wales.
Ian Lucas (Wrexham) (Lab)
Is it not the case that the success of the UK aerospace industry is due to government and industry working together—[Interruption]—and that saying that business succeeds because government gets out of the way is arrant nonsense?
Mrs Gillan
Over this noise, Mr Speaker, I think the hon. Gentleman is suggesting that government should get out of the way of business. Indeed, that is exactly what this Government are doing, with the red tape challenge, by reducing the bureaucracy that the previous Labour Government imposed on our industries, and by reducing the rate of corporation tax so that our business environment can be one of the most competitive in the G20.
Mrs Madeleine Moon (Bridgend) (Lab)
13. What assessment she has made of the implications of the Budget for women in Wales.
The Secretary of State for Wales (Mrs Cheryl Gillan)
Last month’s Budget was one of fairness and values. Although we had to make some difficult decisions, we are committed to ensuring that women all over the UK play a full part in the economic recovery.
Mrs Moon
Women in Wales are suffering and struggling with rising food prices, the rising cost of living and the rising costs of child care. In the most recent quarter, 4,000 additional women became unemployed. How many women in Wales will benefit from the reduction in taxation on high-level earners from 50% to 45%? Will that benefit women in Wales?
Mrs Gillan
Despite the recession, the employment rate for women remains historically high, at 65.3% now compared with 53% in 1971. Employment has fallen more sharply among men during the recession, so frankly it will be expected to rise more quickly as the economy recovers. This is, however, the fourth consecutive set of figures to show employment and economic activity rising in Wales, which I would have thought the hon. Lady would welcome.
Gordon Henderson (Sittingbourne and Sheppey) (Con)
Q1. If he will list his official engagements for Wednesday 25 April.
The Prime Minister (Mr David Cameron)
I am sure the whole House will wish to join me in paying tribute to Sapper Connor Ray, of 33 Engineer Regiment (Explosive Ordnance Disposal), who died on Wednesday 18 April from wounds that he sustained in Afghanistan. He was described by all who served with him as a superb soldier. His dedication and his courage will never be forgotten, and we send our condolences to his family and his loved ones.
This morning I had meetings with ministerial colleagues and others, and in addition to my duties in this House I shall have further such meetings later today.
Gordon Henderson
I associate myself with the Prime Minister’s tribute to Sapper Connor Ray and, in doing so, ask my right hon. Friend whether he will confirm that, although British servicemen and women are scheduled to leave Afghanistan in 2014, the actual pace of withdrawal will be determined first and foremost by the need to minimise the risk to those members of our armed forces serving in Afghanistan at that time.
The Prime Minister
My hon. Friend makes an important point. I can confirm that by the end of 2014 we will not have anything like the troop numbers that we have now, and we will not be in a combat role. Of course, post 2014 we do believe in having a training role with the Afghan army, particularly the officer training role that President Karzai has personally asked for us to undertake. The speed of the reductions between now and the end of 2014 will be in accordance with the conditions on the ground and with what is right in terms of transitioning from allied control to Afghan control—and at all times, of course, paramount in our minds is the safety and security of our brave armed forces, to whom I pay tribute again today.
Edward Miliband (Doncaster North) (Lab)
I join the Prime Minister in paying tribute to Sapper Connor Ray of 33 Engineer Regiment. He carried out his duties with the utmost courage, saving many Afghan and British lives by what he did, and our deepest condolences go to his family and friends.
Today we had the catastrophic news that Britain is back in recession. I am sure that the Prime Minister has spent the past 24 hours thinking of an excuse as to why it is nothing to do with him, so what is his excuse this time?
The Prime Minister
These are very, very disappointing figures. I do not seek to excuse them, I do not seek to try to explain them away, and let me be absolutely clear that there is no complacency at all in this Government in dealing with what is a very tough situation that, frankly, has just got tougher. I believe the truth is this: it is very difficult recovering from the deepest recession in living memory, accompanied as it was by a debt crisis. Our banks had too much debt, our households had too much debt, our Government had too much debt. We have to rebalance our economy, we need a bigger private sector, we need more exports and more investment. This is painstaking, difficult work, but we will stick with our plans, stick with the low interest rates and do everything that we can to boost growth, competitiveness and jobs in our country.
Edward Miliband
Typical of this arrogant Prime Minister—he tries to blame everyone else. The reality is that this is a recession made by him and the Chancellor in Downing street. Over the last 18 months since the catastrophic spending review, our economy has shrunk. This is a slower recovery from recession even than that in the 1930s. The reality is that it is families and businesses who are paying the price for his arrogance and complacency. Why does he not admit that it is his catastrophic economic policy, his plan for austerity, which is cutting too far and too fast, that has landed us back in recession?
The Prime Minister
Not a single business organisation, serious commentator or international body thinks that these problems emerged in the last 24 months. The debt crisis has been long in the making; the failure to regulate our banks has been long in the making; the Government overspending has been long in the making. This is a tough and difficult situation that the economy is in, but the one thing that we must not do is abandon the public spending and deficit reduction plans, because the solution to a debt crisis cannot be more debt. We must not put at risk the low interest rates that are absolutely essential to our recovery—that would be absolute folly. That is why no business organisation and no international economic organisation suggests we follow that course.
Edward Miliband
It is all bluster; the Prime Minister’s plan has failed. That is the reality. They were the people who said that Britain was a safe haven—the Chancellor even said it on Monday—and we are back in recession. It was the Prime Minister who said that we were
“out of the danger zone”—[Official Report, 15 December 2010; Vol. 520, c. 901.]
and this is what has happened. As even his own Back Benchers are saying, the complacent, “arrogant posh boys” just don’t get it.
Let us turn from the economic disaster of this Government to the political disaster that is the Culture Secretary. We now know, from the evidence published yesterday, that throughout the time when the Culture Secretary was supposed to be acting in an impartial manner, he and his office were providing in advance a constant flow of confidential information to News Corporation about statements to be made in this House, his private discussions with the regulators and his discussions with opposing parties. Having seen the 163 pages published yesterday, is the Prime Minister seriously telling us that the Secretary of State was acting as he should have done, in a transparent, impartial and fair manner?
The Prime Minister
Let me first of all finish off on the economy, which the right hon. Gentleman has moved off—[Interruption.]
Mr Speaker
Order. Let us hear what the Prime Minister has to say on the economy, and on anything else.
The Prime Minister
We will not let anyone forget who got us into this mess in the first place. More spending, more borrowing, more debt—that is what caused these problems; it cannot be the solution to these problems.
Let me turn to the Leveson inquiry. I set up the Leveson inquiry and its terms of reference were agreed by the leader of the Liberal Democrat party and the leader of the Labour party. I believe that to step in and prejudge that inquiry would be wrong. Lord Justice Leveson has made that precise point this morning. Let me read to the House what he has said. [Interruption.] Perhaps the House would like to listen. [Interruption.]
Mr Speaker
Order. Let us hear what the Prime Minister has to say, and then the questioning will continue.
The Prime Minister
Lord Justice Leveson said this morning that
“it is very important to hear every side of the story before drawing conclusions.”
He then said that
“although I have seen requests for other inquiries and investigations and, of course, I do not seek to constrain Parliament, it seems to me that the better course is to allow this Inquiry to proceed.”
Having set up this inquiry and agreed with the inquiry, the right hon. Gentleman should listen to the inquiry.
Edward Miliband
Lord Justice Leveson is responsible for a lot of things, but he is not responsible for the integrity of the Prime Minister’s Government. In case he has forgotten, that is his responsibility as the Prime Minister.
It beggars belief that the Prime Minister can defend the Culture Secretary, because he was not judging this bid—he was helping the bid by News Corporation. Two days before the statement to the House on 25 January, the Culture Secretary’s office was not only colluding with News Corp to provide it with information in advance, it was hatching a plan to ensure that it would be
“game over for the opposition”
to the bid. Does the Prime Minister really believe that is how a judge and his advisers are supposed to act?
The Prime Minister
The Leader of the Opposition clearly does not think that what Lord Leveson said this morning matters. Let me remind him of what he said yesterday about the Leveson inquiry. He said:
“I think”—
this is the Leader of the Opposition speaking—
“that it’s right that the Leveson Inquiry takes its course”.
He went on to say that
“the most important thing is that the Leveson Inquiry gets to the bottom of what happened, of what Labour did, of what the Conservatives did and we reach a judgment about that.”
Is it not typical of the right hon. Gentleman that in the morning he sets out his very clear position, but in the afternoon he cannot resist the passing political bandwagon?
Mr Speaker
Order. I said the Prime Minister must be heard, and the Leader of the Opposition must be heard. Both will be heard, however long it takes. It is very clear.
Edward Miliband
Totally pathetic answers. He is the Prime Minister. If he cannot defend the conduct of his own Ministers, his Ministers should be out of the door. He should fire them. He does not even try to defend the Secretary of State and what he did. The Secretary of State told the House on 3 March, in answer to a question from the hon. Member for Banbury (Tony Baldry), that
“today we are publishing…all the consultation documents, all the submissions we received, all the exchanges between my Department and News Corporation.”—[Official Report, 3 March 2011; Vol. 524, c. 526.]
But he did not, because 163 pages have now emerged. The Prime Minister does not defend him over giving confidential information to one party in the case; he does not defend him over collusion; is he really going to defend him about not being straight with this House of Commons?
The Prime Minister
Let me make it absolutely clear that the Culture Secretary, who has my full support for the excellent job that he does, will be giving a full account of himself in this House of Commons this afternoon and in front of the Leveson inquiry, and he will give a very good account of himself for this very simple reason: that in judging this important bid, he sought independent advice from independent regulators at every stage, although he did not need to, and he took that independent advice at every stage, although he did not need to. The way he has dealt with this issue is in stark contrast to the Governments of whom the right hon. Gentleman was a member.
Edward Miliband
I say this to the Prime Minister: while his Culture Secretary remains in place, and while he refuses to come clean on his and the Chancellor’s meetings with Rupert Murdoch, the shadow of sleaze will hang over this Government. It is a pattern with this Prime Minister—Andy Coulson, Rebekah Brooks and now the Culture Secretary. When is he going to realise that it is time to stop putting his cronies before the interests of the country?
The Prime Minister
I have to say to the right hon. Gentleman that he called for an independent judicial inquiry. That is the inquiry I have set up. He agreed the terms of reference. Now he is flip-flopping all over the place. The fact is that the problem of closeness between politicians and media proprietors had been going on for years and it is this Government who are going to sort it out. Whether it is the proper regulation of the press, whether it is cleaning up our financial system, whether it is dealing with our debts: I don’t duck my responsibilities. What a pity he cannot live up to his.
Karl MᶜCartney (Lincoln) (Con)
Q2. Is my right hon. Friend aware of recent very good news in the manufacturing and engineering sectors in Lincoln? Hoval has seen an increase in turnover of over 20% to around £17.5 million; Italian firm Brifrangi has confirmed an investment of circa £50 million in a new tooling press, one of the largest in the world; and Siemens is involved in the first new engineering school in our country for 20 years. Will my right hon. Friend accept my personal invitation to visit Lincoln to see for himself the excellent progress our city is enjoying under his Conservative-led Government?
The Prime Minister
I am very grateful for my hon. Friend’s invitation and will try to take it up. As I said earlier, although there is very disappointing news today about what is happening in our economy, underneath that there is a rebalancing that needs to take place, and is taking place, in terms of manufacturing investment and exports, and in terms of the Government getting behind that, with more investment in apprenticeships and more investments in technical hubs at our universities, like the one at the university of Lincoln, and by cutting business taxes so that we get Britain working and making things again.
Yasmin Qureshi (Bolton South East) (Lab)
On Monday, the Prime Minister said that he was going on an economic rescue mission. Is it not fair to say that that mission has failed spectacularly in the light of the figures released today?
The Prime Minister
The point I would make to the hon. Lady is that the recession we suffered—a 7% contraction of our gross domestic product—was much bigger even than what happened in America. It is worth remembering that the biggest bank bail-out anywhere in the world was not in America; it was here in Britain. Getting out of the recession, the financial crisis and the debt crisis is difficult, painstaking work, but this Government are committed to doing just that.
Gordon Birtwistle (Burnley) (LD)
Q3. Last week, I met the chief executive of the fourth largest manufacturing group in the UK, Unison Engineering, which has a substantial factory in Burnley. He has been instructed by his US board to increase the turnover of his UK operations so as to take advantage of the Government’s industrial strategy. He is concerned about the lack of skills. [Interruption.] Can my right hon. Friend assure me that the Government investment in apprenticeships and university technical colleges will increase over the coming years?
The Prime Minister
What is interesting is that if any Member of Parliament wants to talk about manufacturing success or business success in their constituency, they are shouted down by the Opposition, because all they want to hear is bad news and to talk our economy down. We are investing in skills and putting more money into the apprenticeship schemes and the university technical colleges. I was at Airbus in Filton this week seeing the expansion and growth plans there, and it is good to hear what is happening in my hon. Friend’s constituency.
Shabana Mahmood (Birmingham, Ladywood) (Lab)
Does the Prime Minister agree with his Chancellor, who said in 2008 that
“once…you’ve got a downturn you cannot possibly slash public expenditure”?
Will the Prime Minister stick to his complacent plan of cutting too far and too fast, which has delivered a double-dip recession?
The Prime Minister
Well read. [Interruption.] The point is that we inherited from the Labour party a budget deficit of 11%. The budget deficit we inherited was bigger than Greece’s, bigger than Spain’s, bigger than Portugal’s. If you do not deal with your debts and your deficit, you will never keep interest rates low, and it is low interest rates that offer us the best prospects of getting out of this difficult economic situation we are in.
Jeremy Lefroy
At least half a million children died from malaria last year. On world malaria day, may I thank the Prime Minister for his personal commitment to combating this disease? Will he join me in recognising the international leadership that British scientists, aid workers and volunteers, including Rotarians in Penkridge and Stafford in my constituency, show in combating malaria?
The Prime Minister
I am grateful for the opportunity to join my hon. Friend in wishing the people of Penkridge well. He did rather better in convincing the people of Penkridge to vote for him than I did in 1997. He is absolutely right to raise the issue of malaria on world malaria day. Some 15,000 children die every week from what is a preventable illness. That is why I am proud that Britain is leading on this issue, putting money into the aid budget and malarial bed nets, and making all the scientific advances that he referred to. This is a vital agenda, and even in difficult economic times, we are right to pursue it.
Mark Hendrick (Preston) (Lab/Co-op)
Q5. Does this out-of-touch Prime Minister still believe that the British economy is “out of the danger zone”?—[Official Report, 15 December 2010; Vol. 520, c. 901.]
The Prime Minister
One of the biggest problems we faced on taking office was the danger that financial markets would take the same view of Britain as they took of Greece, Spain and Portugal, where interest rates were rising. That Britain has such low interest rates demonstrates that we have credibility. Difficult decisions are needed to get on top of the debt and deficit, and to deal with public spending, but they are the right decisions, not least because, as the shadow Chancellor once said, low interest rates are the mark of economic credibility.
Craig Whittaker (Calder Valley) (Con)
Q14. The head teachers of Calder and Todmorden high schools in Calder Valley welcome the Government’s educational reforms. [Hon. Members: “Reading!”] They are two schools that never qualified for the Building Schools for the Future programme under the previous Government because they attained far too highly. [Hon. Members: “Reading!”] Will the Prime Minister tell the pupils of those schools when they can expect an announcement on the priority school buildings project to which they both applied?
The Prime Minister
We are investing more in school building than Labour did in its first two Parliaments after 1997. The figure is along the lines of £17 billion during the spending review period. So there are opportunities for new classrooms and buildings, and I am sure that the Secretary of State for Education, who is listening carefully to my hon. Friend, will be in touch with him about their prospects.
Mr Iain McKenzie (Inverclyde) (Lab)
Q6. Did the Prime Minister agree with the hon. Member for Mid Bedfordshire (Nadine Dorries) when she said that the Prime Minister and the Chancellor—[Interruption.]
Mr McKenzie
Did the Prime Minister agree with the hon. Lady when she called him and the Chancellor “posh boys” showing no compassion or understanding for the lives of others? Is that not further evidence that they are out of touch and an explanation for this double-dip recession?
The Prime Minister
I agree with my hon. Friend the Member for Mid Bedfordshire (Nadine Dorries) about many, many things.
Andrew Jones (Harrogate and Knaresborough) (Con)
Over the past two years, UK exports have grown by 23%, and even faster to the BRIC. Will my right hon. Friend join me in congratulating the 151 winners of the Queen’s award for enterprise this week on their success in international trade, particularly GSPK Circuits in Knaresborough and Boroughbridge in my constituency?
The Prime Minister
I certainly join my hon. Friend in congratulating that business on its export performance. When we look at some of the fastest-growing markets in the world—whether India, China or some of the south-east Asian markets I visited a few days ago—we see that our export performance in some of those markets, compared with 2009, is up by as much as 60%. As well as those markets, however, we also have to remember our old friends, as it were, and the fact that we still export more to the Republic of Ireland than to Brazil, Russia, India and China combined. So we need to expand our existing markets, but it is far harder work to get into the fast-growing markets of the world.
David Simpson (Upper Bann) (DUP)
Q7. Recently, the Prime Minister conceded that the Government had made an “important mistake” in the handling of the fuel crisis. Would it not be a positive step in correcting that mistake were the Government to scrap the 3p increase in August, in order to help motorists, haulage companies and hard-pressed families in the UK?
The Prime Minister
The Government have actually used about £4 billion of Budget money to keep petrol prices down. They are about 6p lower than they would be under Labour’s plans. Let me update the hon. Gentleman and the House on the issue of the fuel strike. It now looks as if there will be longer before a strike could take place. I am determined that we use that time to ensure that every piece of resilience is in place. The plans we inherited would have allowed the military to provide perhaps 10% of our fuel needs. We have now managed to lift that to about 60% or 70%. We are in a much better place now because of the proper emergency planning that this Government have done, as opposed to the Labour party, which just crosses its fingers and hopes for the best from the trade unions.
Mr David Amess (Southend West) (Con)
Next Wednesday my mother Maud will celebrate her 100th birthday. Living, as she does, five minutes from the Olympic stadium, she has agreed to be Usain Bolt’s pacemaker, in order to give the other athletes a chance. Will my right hon. Friend now call on the indomitable spirit of former Land Army girls such as my mother and encourage our Olympic athletes to go for gold?
The Prime Minister
I will certainly do that. I have written to Maud to congratulate her on this fantastic milestone, and I am sure that as she speeds past Usain Bolt, she will turn round and reflect that the only way is Essex.
Mr Speaker
I am delighted that the Prime Minister has written to her. That makes two of us.
Fiona O'Donnell (East Lothian) (Lab)
Q8. The Prime Minister has spent plenty of time cosying up to News Corporation in return for political support, so—[Interruption.] I can wait. He is therefore well qualified to answer this: when Alex Salmond agreed to act as a lobbyist for News Corp, was he acting in self-interest or in the interests of Scotland?
The Prime Minister
First, I think Alex Salmond can answer for himself. Secondly, this is another issue for the Leveson inquiry—properly set up, properly established—which is going to interview all the politicians, including all sorts of people who cosied up to News International over the years. I think on all sides of the House there is a bit of a need to say, hand on heart, that we all did too much cosying up to Rupert Murdoch—I think we would agree. On that basis, I am sure that Lord Leveson will make some important recommendations.
Andrew Griffiths (Burton) (Con)
Q9. Has the Prime Minister seen the research published today by the TaxPayers Alliance, which shows that there are 3,097 town hall employees earning more than £100,000 and 52 earning more than £250,000? My constituents in Burton cannot understand such exorbitant salaries. What can we do about it?
The Prime Minister
My hon. Friend is entirely right to raise this issue. The important thing that we have done is to make completely transparent the pay in our town halls and local government. Sadly, I believe there is still one local council—a Labour-controlled council in Nottinghamshire—that is not making that information available. Every council should be transparent about how it spends council tax payers’ money.
Barbara Keeley (Worsley and Eccles South) (Lab)
Last year the Prime Minister said that those warning him that cutting too far and too fast would risk a double-dip recession should apologise. Now that he has delivered a double-dip recession, should he not apologise?
The Prime Minister
The point I would make to the hon. Lady is this: we faced a very difficult situation, with an 11% budget deficit. If we had listened to the plans of the Opposition, and spent more, borrowed more and increased our debt, that would have only made the debt crisis worse. How can the answer to a debt crisis be more borrowing? That is the question the Opposition can never answer.
Bob Blackman (Harrow East) (Con)
Q10. After weeks of ducking and diving, Ken Livingstone has given a partial publication of his tax affairs. Sadly, he refuses to publish the tax affairs of Silveta, the company he set up to avoid paying his fair share of tax. Does my right hon. Friend agree that Ken Livingstone has ceased to be the old pretender and has now become the Artful Dodger?
The Prime Minister
I think my hon. Friend speaks for all of London when he makes that point. Ken Livingstone owes the people of London some proper transparency about this company and about his tax bill. There are still several days to go before this key election. He should make that information available. I have to say that I had something of a shock this week, because I have hardly ever agreed with anything Alan Sugar has ever said, but in saying that Londoners should not back Ken, he was spot on.
Mr Jim Cunningham (Coventry South) (Lab)
Q11. Now that the Prime Minister has admitted that he created the economic mess that the country is in, may I be helpful to him and suggest that he drop his ridiculous proposals for regional pay cuts and accelerate the capital programme for schools in Coventry and the west midlands?
The Prime Minister
As I said earlier, we are spending more on capital on schools in this Parliament than either of the first two Labour Parliaments. I am very happy for Education Ministers to look specifically at the case in the hon. Gentleman’s constituency to see what can be done. I also hope that he will join me and invite people in Coventry on 3 May to vote yes for a mayor for Coventry.
Stephen Lloyd (Eastbourne) (LD)
Q13. Every year, millions of British people donate money to charities. They do so for the simple reason that they want to help the cause or help others who are worse off then they are. I would describe those actions by members of the public as honourable, kind and selfless. We have all heard recently that some, but not all, of our wealthy citizens want to donate money to charity only if they can continue to reduce their tax bill. Does the Prime Minister think that their motives are honourable, kind and selfless?
The Prime Minister
We should support people who give money to charity, which is why the Government have expanded gift aid very generously and made available a change to help people with inheritance tax if they leave bequests to charity. As the hon. Gentleman knows, the Budget set out a number of limits to reliefs, and we specifically identified the potential problem for charities. My right hon. Friend the Chancellor will consult very widely on how we can make sure that we encourage philanthropic giving and charities, and what charities do in our country.
Angela Smith (Penistone and Stocksbridge) (Lab)
Q12. The Prime Minister’s dismissive response to the fact that the UK is now back in recession suggests that his mind is on other things. Should he not just sack his Culture Secretary and concentrate properly on the job of sorting out the British economy?
The Prime Minister
I think the hon. Lady would recognise that there is absolutely nothing dismissive about either my reply on the economy or, indeed, what I think we need to do. We are in a difficult economic situation in Britain, just as we see recessions in Denmark, in Holland, in Italy and in Spain. That is what is happening across the continent with which we trade. It is absolutely essential that we take every step that we can to help our economy out of recession: investing in apprenticeships; setting up enterprise zones; cutting business taxes; and prioritising investment in our infrastructure. We are doing all those things, and we will do more to help get our economy out of the mess in which the last Government left it.
Stephen Hammond (Wimbledon) (Con)
Far from being dismissive, the Prime Minister acknowledged that the figures were disappointing. Does he agree that if we are getting out of a debt crisis we should not spend more money? There is no international organisation suggesting that this country change course and spend more money to do so.
The Prime Minister
My hon. Friend is absolutely right. It is not just that there is no international body making that case—there is no business organisation making that case. Indeed, the Institute of Directors and the CBI have both said today that, while these figures are disappointing, we must not give up the low interest rates and the credible fiscal policy that we have, as that would land our economy in the problems that the Opposition left it in.
Mr David Winnick (Walsall North) (Lab)
It is a sorry state of affairs when in just two years the economy is in deep recession and now the Government are deep in sleaze. Same old Tories.
Chris Bryant (Rhondda) (Lab)
On a point of order, Mr Speaker. It relates to the Prime Minister.
Mr Speaker
It may relate to the Prime Minister but, as far as I am concerned, unless I am advised otherwise, points of order come after statements, and the statement—
Mr Speaker
I note what the hon. Gentleman has said from a sedentary position. We will now hear the statement from the Secretary of State for Culture, Olympics, Media and Sport. I call Mr Secretary Hunt.