(10 years, 11 months ago)
Commons ChamberRead Hansard Text Read Debate Ministerial Extracts
Bob Blackman (Harrow East) (Con)
1. What discussions he has had on new investment in energy infrastructure in Wales.
The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)
Wales is already attracting significant investment in new energy infrastructure. From Hitachi’s investment in new nuclear to promising marine energy projects such as the Skerries tidal stream array, Wales is proving that it can play a leading role in meeting our country’s energy needs.
Bob Blackman
It is good news that Wales is getting energy infrastructure, but what will my hon. Friend do to ensure that businesses and consumers can access it?
Stephen Crabb
I thank my hon. Friend for that question. This country needs more than £100 billion of new energy infrastructure investment in the next eight years. We at the Wales Office are determined that Welsh businesses should be at the forefront of those opportunities in Wales, which is why my right hon. Friend the Secretary of State will host an energy summit to explore with Welsh businesses the opportunities that this new investment will afford.
Hywel Williams (Arfon) (PC)
Will the Minister assure the House that when an assessment is made of competing means of transmission, full consideration will be given to the full costs, including those to tourism and outdoor pursuit industries?
Stephen Crabb
I recognise the important point made by the hon. Gentleman and I followed the debate secured by the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) yesterday evening on that very issue. It is clearly important that the distribution transmission companies take a view of all the costs involved, but there is concern that when we make these transmission projects more expensive—through, for example, underground cabling—the cost is ultimately borne by households who pay energy bills.
Roger Williams (Brecon and Radnorshire) (LD)
Anaerobic digestion is an important player in energy production in Wales. There appears to have been a problem in the feed-in tariff order scheme for anaerobic digestion of less than 500 kW, which could affect investment in the technology. Will the Minister work with the ministerial team in the Department of Energy and Climate Change to rectify this problem?
Stephen Crabb
I thank my hon. Friend for that question. We are very aware of the issue. A discussion is taking place with officials and colleagues at DECC. They are in contact with the trade body for the developers of such projects, and I hope a solution will be found soon.
Huw Irranca-Davies (Ogmore) (Lab)
2. What assessment he has made of the effect of recent increases in the cost of energy bills on living standards in Wales.
The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)
The recent price increases announced by the big six are unwelcome, especially at this time, which is why we are legislating to force energy companies to put people on the lowest tariff that meets their preference. We are also helping to keep bills lower by increasing competition in the market and opening up the marketplace for new independent suppliers to challenge the dominance of the big six.
Huw Irranca-Davies
Last week a friend of mine who works with elderly residents in Ogmore visited four elderly residents in one day. All four would not put on their heating because they were frightened of the effect on them of rising fuel prices. They sat in the cold. Yesterday, it snowed in Ogmore. Is not this the time to call for a freeze on prices so that elderly people are not afraid that they will freeze in their homes?
Stephen Crabb
As I said, the increases in bills are unwelcome at this time and we all know from our communities the pressures that puts on vulnerable households, but I would say to the hon. Gentleman that, on the slogan of a price freeze for energy, the Leader of the Opposition knows full well that that is not deliverable. We know from Labour’s track record in government that it was intensely relaxed about gas prices doubling, electricity prices going up by more than 50% and increasing fuel tax 12 times. It was too relaxed and complacent.
Robert Halfon (Harlow) (Con)
Does my hon. Friend agree that one of the biggest impacts on the cost of energy is the high cost of petrol and diesel, and that the fuel duty freeze will mean that petrol and fuel duty will be 13p cheaper in tax terms and will help the cost of living enormously in Wales and across the country?
Stephen Crabb
My hon. Friend is exactly right. It is of particular benefit in rural Welsh areas, where average incomes are lower. By the end of this Parliament, average fuel prices will not be 13p per litre lower; they will be more than 20p per litre lower than under the previous Government’s plan.
Jessica Morden (Newport East) (Lab)
13. A report by the CAB last week showed that over the past three years energy bills have increased eight times more than earnings. Does the Secretary of State not share the concern that Wales has the highest energy bills of anywhere in the UK? If he does, why does he not tackle that far more urgently?
Stephen Crabb
Wales has some of the highest energy prices, but regional variations are partly due to higher transmission costs—an important component of an energy bill. That brings us back to the earlier question about wanting more expensive transmission projects in Wales, not cheaper ones. We are very aware of the pressure on households in Wales because of the energy prices increase, and we are not complacent about that.
Mr Mark Williams (Ceredigion) (LD)
A particular concern in rural areas such as Ceredigion is the crippling price of domestic oil. What work will my hon. Friend do, including with the Department of Energy and Climate Change, to support oil syndicates and oil clubs and encourage bulk purchasing to reduce price?
Stephen Crabb
The collective purchasing power of communities and groups of buyers of oil might have a role in bringing down prices for consumers in rural areas. We are seeing that with switching as well. My colleagues at the Department of Energy and Climate Change are encouraging community groups to come together to strike collective switching agreements with companies to help bring down prices.
Mr Peter Hain (Neath) (Lab)
With sky-high energy bills in Wales, which are higher than anywhere else, and a Tory-aligned think-tank saying that people are maxed out on personal debt—there are about 250,000 of them in Wales—does the Minister agree with the planning Minister, the hon. Member for Grantham and Stamford (Nick Boles), that his party is the party of the rich and that its members are seen as aliens and heartless extremists?
Stephen Crabb
The right hon. Gentleman is a member of a party about which one of his colleagues said it was “intensely relaxed” about people becoming filthy rich. It was intensely relaxed about many families on low incomes being pushed into greater household debt. We do not take that approach; we are trying to bring down household debt.
Guto Bebb (Aberconwy) (Con)
Does the Minister agree that the Labour party claims to be concerned about the cost of living in Wales, yet on the one cost it can control, the council tax, it has failed miserably to support Welsh constituents?
Stephen Crabb
My hon. Friend is absolutely right. If Opposition Members were genuinely concerned about tackling the cost of living in Wales they would be hammering on the door of their Labour colleagues in the Welsh Government in Cardiff and demanding that they freeze council tax bills, as we have for households in England.
Nia Griffith (Llanelli) (Lab)
Wales has seen the sharpest increase in the number of people falling behind with their energy fuel bills—up 24% from 68,000 two years ago to an alarming 85,000 households now in arrears. With SSE’s massive 8% price hike kicking in last Friday, will the Minister explain why he thinks it is not possible to deliver an energy freeze and to break up the six big energy companies to deliver a fairer system for the people of Wales?
Stephen Crabb
The uncompetitive big six were of course created by the previous Labour Government. We are opening up the marketplace to seven new independent suppliers, challenging the dominance of the big six and increasing competition in the marketplace, which will deliver lower bills for households in Wales.
Mr Henry Bellingham (North West Norfolk) (Con)
3. What plans he has to encourage growth in the small and medium-sized enterprise sector in Wales.
The Secretary of State for Wales (Mr David Jones)
Small and medium-sized enterprises are vital to the economy in Wales and, indeed, the UK as a whole. That is why we have launched the Business is Great campaign, focusing on how we can further support these thriving businesses.
Mr Bellingham
I agree with the Secretary of State that small businesses in the Principality and across the country are the lifeblood of the economy. Considerable moves have been made already on the tax front and in lifting burdensome regulations. What more can he do, working with the Welsh Government, further to enhance wealth creation and the job-generating power of small businesses?
Mr Jones
My hon. Friend is absolutely right that SMEs are the backbone of the Welsh economy, and we are keen to do all we can to encourage them. That is why we have initiated the StartUp loans scheme, which has already lent about £50 million to more than 9,000 new businesses. With effect from this October, working with the Welsh Government, we have announced the scheme’s roll-out to Wales, so that any Welsh entrepreneur with a good idea can come forward and apply for a loan.
Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC)
The Secretary of State will know that SMEs in Dwyfor Meirionnydd are doing their best to thrive in the face of coalition austerity, as he visited the first ever Meirionnydd day the week before last. I thank him for attending it. However, the economic situation outside London is far different from down here, so why not make the National Insurance Contributions Bill, which is currently going through the House, apply everywhere outside London and south-east England, thereby mirroring a move in the Government’s emergency Budget of 2010?
Mr Jones
I did, indeed, enjoy my visit to the Meirionnydd day that the right hon. Gentleman held, and I was very impressed by the positive attitude of SMEs from his constituency. He will know that the national insurance contributions employment allowance will benefit 35,000 businesses across Wales by a total of £50 million, with 20,000 of those businesses being taken out employer national insurance contributions altogether, which I would have thought his constituents welcomed.
Mr Llwyd
Welsh exports were down by just under £1 billion over the past 12 months, which is the biggest fall in any UK nation or English region. What discussions is the Secretary of State having with the Chancellor to ensure that the Welsh producing economy, which is comprised mainly of SMEs, is not paying the price for a growing service and finance economy centred on London and the south-east?
Mr Jones
We are anxious to ensure that as many SMEs as possible export. That is a good reason for Welsh SMEs to utilise the services of UK Trade & Investment. UKTI has global reach and is available to every business, including those in Wales. I encourage the right hon. Gentleman to encourage his constituents to seek the services it offers.
Alun Cairns (Vale of Glamorgan) (Con)
The extension of the StartUp loans scheme to Wales is fantastic news for budding entrepreneurs across the nation. Will the Secretary of State join me in calling on the enterprise agencies, such as Business in Focus, which serves the Vale of Glamorgan, to co-ordinate their activities in a campaign to get more people to start their own businesses?
Mr Jones
Indeed; we need more entrepreneurs in Wales to set up their own businesses. The roll-out of the StartUp loans scheme to Wales is extremely good news. It was done in co-operation with the Welsh Government and I was pleased to see their entirely positive attitude to it.
Geraint Davies (Swansea West) (Lab/Co-op)
Swansea accepts that Hull, coming out of the shadows, not Swansea, continuing to shine, was named the UK city of culture for 2017. Does the Secretary of State agree that to maximise the growth of SMEs, we need to keep the momentum of the bid going, maximise the opportunity of the Dylan Thomas centenary and confirm Swansea as the city of culture of Wales?
Mr Jones
I agree entirely with the hon. Gentleman. While I congratulate Hull, I was bitterly disappointed that Swansea did not get the accolade of city of culture. Nevertheless, Swansea’s bid was an extremely good one and the networks that were built up can form a good platform for future enterprises. I agree that the Dylan Thomas centenary is a massive opportunity for Swansea.
Bill Wiggin (North Herefordshire) (Con)
4. What assessment he has made of the potential effect on the Welsh economy of upgrading the M4 motorway.
Andrew Selous (South West Bedfordshire) (Con)
6. What assessment he has made of the potential effect on Wales of upgrading the M4 motorway.
The Secretary of State for Wales (Mr David Jones)
Upgrading the M4 is a key priority for the Government and for businesses in Wales. That is why we are enabling the Welsh Government to use their existing limited borrowing powers to begin work on upgrading the motorway as soon as possible.
Bill Wiggin
Will my right hon. Friend assure the House that he will continue to persuade his colleagues in the Welsh Government to work hard to ensure that there are improvements to the M4 around Newport?
Mr Jones
My hon. Friend is entirely right. That infrastructure improvement has long been called for, particularly by the CBI. An upgrade is grossly overdue. We have given the Welsh Assembly Government the borrowing powers that they need. We hope and expect that they will proceed with the upgrade as quickly as possible.
Andrew Selous
Is it the case that although funding to upgrade the M4 around Newport may not have been available in the past, the Government’s recent agreement to increase the borrowing powers of the Welsh Government means that the upgrade can now go ahead?
Kevin Brennan (Cardiff West) (Lab)
One of my earliest memories is cramming into the back of my dad’s Ford Anglia in 1966 with my two sisters and my brother, and crossing the original M4 Severn crossing. Forty-seven years later, it costs £6.20 for a car, £12.40 for a van and £18.60 for a heavy goods vehicle. The second Severn crossing was built 17 years ago. Is it not time that we improved the Welsh economy by getting rid of those burdensome tolls?
Mr Jones
I agree with the hon. Gentleman that the tolls are a major impediment to businesses in south Wales. Having said that, these are important pieces of infrastructure that assist the south Wales economy immensely. As he will know, the franchise ends in 2017-18. At that time, we will look at ways to reduce the cost of crossing the Severn.
David T. C. Davies (Monmouth) (Con)
8. Businesses and commuters have given a warm welcome to the announcement about the M4 relief road that was made by the Prime Minister and his deputy. Given that, what does the Secretary of State make of the headline in the South Wales Evening Post on Monday, which suggested that the Liberal Democrats in Wales oppose that vital piece of infrastructure?
Susan Elan Jones (Clwyd South) (Lab)
5. When he plans to bring forward legislative proposals to give the Welsh Government borrowing powers.
The Secretary of State for Wales (Mr David Jones)
Our detailed response to the Silk Commission’s recommendations, which we published on Monday, confirmed that we will include proposals in a draft Wales Bill to give the Welsh Government borrowing powers. We will publish the draft Bill, for pre-legislative scrutiny, in the current parliamentary Session.
Susan Elan Jones
I welcome the fact that, after a year’s wait, we finally have a statement from the Secretary of State, but I would like to press him further, as he speaks of details. When will we know the basis on which the Welsh capital borrowing limits will be calculated? There is a precedent in the Scotland Act. Why will he not just say that he will follow that?
Mr Jones
I make no apologies for ensuring that the proposal was properly scrutinised. The package we announced is good for Wales and I am glad that it was welcomed by the Welsh Government, who will have new borrowing powers. The borrowing limit that will apply to those powers will be commensurate with the Welsh Government’s access to independent streams of funding to repay the borrowing they incur. The details will be placed on the face of the draft Bill when it is published.
Michael Fabricant (Lichfield) (Con)
If the National Assembly for Wales is going to have borrowing powers, and if it is going to smell like a Parliament and look like a Parliament, is it not time that it became the National Parliament of Wales?
Mr Speaker
Order. Noisy and discordant conversations are taking place in the Chamber. I am sure I am not alone in wanting to hear the Secretary of State’s answer to the hon. Member for Lichfield (Michael Fabricant).
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
In Monday’s statement, the Secretary of State closely tied in borrowing powers with the income tax sharing arrangement between the UK and the Welsh Government. Will he confirm that the proposed sunset clause on the referendum has been dropped?
Mr David Hanson (Delyn) (Lab)
7. What steps the Government are taking to increase the number of people in Wales who earn a living wage.
Chris Ruane (Vale of Clwyd) (Lab)
11. What steps the Government are taking to increase the number of people in Wales who earn a living wage.
The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)
We support strong minimum wage legislation and rigorous enforcement as a way of protecting people on the lowest incomes. Decisions on wage rates above the minimum wage are for employers and employees to agree together.
Mr Hanson
According to a Barclays bank survey in my constituency, in the past year those earning £100,000 or more saw their spending power rise by 4.4%, while those on less than £15,000 saw their spending power fall by 5.6%. Does the Minister think that that has anything to do with Government policy? Will he work towards a minimum wage to help the 700,000 people in Wales who currently earn less than the living wage?
Stephen Crabb
I gently point out to the right hon. Gentleman that the vast majority of the decline in real wage values in his constituency and throughout Wales occurred in the last three years of the Labour Government. We are working incredibly hard to bring new jobs and investment to constituencies such as the right hon. Gentleman’s. If he is saying that those jobs are not welcome unless they pay more than £7.60 an hour, he needs to make that clear, but it would be a significant barrier to inward investment.
Chris Ruane
Welsh wages have fallen in 40 of the 41 months since the Government came to power in 2010. By the next election, Welsh workers will be £6,000 worse off than they were in 2010. What is the Minister doing to help Welsh workers improve their living standards?
Stephen Crabb
The best way to achieve better living standards for people in the hon. Gentleman’s constituency and throughout Wales is to tackle our problems head on, to take the responsible decisions and to do everything we can to encourage businesses to create jobs. That is why unemployment is falling in his constituency when it increased so rapidly under last five years of the Labour Government.
Jonathan Evans (Cardiff North) (Con)
Surely the best way to raise living standards in Wales is to bear down on economic inactivity in Wales. Will my hon. Friend share with the House what has happened to economic inactivity since the 2010 election?
Stephen Crabb
My hon. Friend is quite right: economic inactivity and worklessness have been a curse on Wales for too long. Under the last Labour Government, economic inactivity rates averaged around 21%; under this Government they are down to around 21%. [Interruption.] We are not complacent: we want to go further with improving the situation.
Ann Clwyd (Cynon Valley) (Lab)
14. In some parts of Cynon Valley, over half the children are living in poverty. Why?
Stephen Crabb
I am grateful to the right hon. Lady for that question. I visited her constituency and I am well aware of the deep-seated, long-entrenched problems there. I have been to the jobcentre in Aberdare and seen how hard the excellent team are working to tackle long-term unemployment, but there are no quick fixes. What we are doing, with the Work programme and our other efforts through the Department for Work and Pensions, is trying to bear down on worklessness and get more people into jobs.
Karl MᶜCartney (Lincoln) (Con)
9. What assessment he has made of the potential effect on the Welsh economy of varying the current level of taxation in Wales.
The Secretary of State for Wales (Mr David Jones)
The power to vary tax is an important way of driving economic growth and ensuring that Governments are accountable for the way they spend money. We will devolve certain taxes to the Welsh Assembly and Welsh Government and provide for a referendum, so that people in Wales can decide whether some of their income tax should be devolved, as in Scotland.
Karl MᶜCartney
I thank my right hon. Friend for that answer. Could he explain what role devolving stamp duty land tax will play in stimulating the housing market in Wales, including in rural places such as Llanbedr Pont Steffan? Does he agree that the expansion of the Help to Buy scheme—
Mr Speaker
Order. Unfortunately the question has got nothing to do with the current level of taxation in Wales. [Interruption.] Come on, finish it off.
Karl MᶜCartney
Will the scheme help not only aspiring home owners in Wales, but my constituents in Lincoln?
Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
What substantive planning is the Secretary of State doing for the Welsh economy to take full advantage of the benefits that Scottish independence will bring to these islands in the coming years? Surely tax-varying powers are the minimum requirement in Wales, so that it, too, will benefit in the way that Scotland will benefit in the years to come.
Owen Smith (Pontypridd) (Lab)
On Monday, we heard in this House the Secretary of State commit his party to cutting a penny off income tax for taxpayers in Wales, including millionaires. I am sure he did not pluck that figure out of thin air; I am sure he consulted the Treasury. Will he therefore tell us what the precise cost to the Welsh budget will be of his proposed tax cut?
Mr Jones
The point I made was that a cut of one penny in the pound would do a tremendous amount to stimulate the Welsh economy. Let me repeat what I said to the hon. Gentleman on Monday. We in the Conservative party are ambitious for the people of Wales. We want to see the Welsh economy growing; he wants a Welsh economy reliant on handouts. That is the difference between our parties.
Owen Smith
No, the difference is that I want some answers. I assume from the Secretary of State’s answer that he did not consult the Chancellor and does not know how much the proposal will cost the Welsh budget, so let me help him out. The static effect is £200 million, or the equivalent of 5,000 teachers in Wales, so will he tell us which services he would propose cutting to pay for that tax pledge?
Mr Jones
The hon. Gentleman clearly does not get it. The issue of whether income tax should be devolved will be in the hands of the Welsh people. It will be up to the Welsh Assembly Government to make the decision to trigger that referendum. For our part, we want them to trigger that referendum, to call it, to elect for a lower rate of tax and to give Wales the competitive edge that so far it lacks under the Labour Welsh Assembly Government.
Stephen Mosley (City of Chester) (Con)
10. What assessment he has made of the potential economic effect of the proposed new prison in north Wales.
The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)
Our £250 million investment in a new prison in north Wales will be a significant driver for growth in the local economy and provide around 1,000 jobs. The prison is expected to contribute £23 million a year to the regional economy.
Stephen Mosley
Will the Minister join me in welcoming the fact that the prison will allow prisoners from north Wales and Cheshire to live closer to their families and maintain vital links with them, thus helping rehabilitation?
Stephen Crabb
My hon. Friend is exactly right. Aside from the important economic benefits to Wales of the new prison, importantly it will help families stay in closer touch with prisoners, which has been proven time and again to be a vital factor in whether people reduce their offending behaviour when they are out of prison.
Mr Crispin Blunt (Reigate) (Con)
Good ideas have many parents, and I am sitting alongside two of them in the case of the prison in Wrexham. I urge my hon. Friend the Minister to make sure that, as a new large prison, it contains units that can deal with all the different types of offenders who will need to be addressed to produce the best rehabilitative effect, and that there are proper work facilities for prisoners under that regime.
Stephen Crabb
I thank my hon. Friend. Last week, I saw a great example of a large and diverse prison—Parc prison in Bridgend—which shows just how effectively different categories of prisoners can be brought together and offending behaviour can be tackled. We have exactly the same aspiration for the new prison in north Wales.
Steve Brine (Winchester) (Con)
Q1. If he will list his official engagements for Wednesday 20 November.
The Prime Minister (Mr David Cameron)
I am sure the whole House will wish to join me in paying tribute to Warrant Officer Ian Fisher of 3rd Battalion the Mercian Regiment, who was killed on operations in Afghanistan on Tuesday 5 November. It is clear from the tributes paid that he was a professional and well respected soldier who made a huge contribution to the Army over many years on a number of operational tours. Our thoughts and our condolences should be with his family and his friends.
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.
Steve Brine
I am sure every Member will want to associate themselves with the Prime Minister’s tribute—a reminder that in this season of remembrance we will in faith always remember their service to our country.
MPs from across the House will have grave concerns about the nightmare unfolding at the Co-operative bank. Does the Prime Minister share my sense of disbelief that a person such as Reverend Flowers, responsible as he was for such large sums of our constituents’ money, was ever appointed to the position of chairman? What can my right hon. Friend now do to find out how on earth that happened?
The Prime Minister
My hon. Friend makes an important point. Constituencies across the House will have people who hold Co-op bonds who are very worried about what will happen to their investment. Let me be clear that the first priority is to safeguard this bank—and to make sure that it is safeguarded without using taxpayers’ money. That must be the priority. My right hon. Friend the Chancellor will be discussing with the regulators what is the appropriate form of inquiry to get to the bottom of what went wrong, but there are clearly a lot of questions that have to be answered. Why was Reverend Flowers judged suitable to be chairman of a bank, and why were alarm bells not rung earlier, particularly by those who knew? In the coming days, it will be important for anyone who has information to stand up and provide it to the authorities.
Edward Miliband (Doncaster North) (Lab)
I join the Prime Minister in paying tribute to Warrant Officer Ian Fisher of 3rd Battalion the Mercian Regiment. He died serving his country, and all our thoughts are with his family and friends.
Can the Prime Minister tell us how his campaign to save the Chipping Norton children’s centre is going?
The Prime Minister
I support children’s centres across the whole of the country. The fact is that, in spite of very difficult decisions that have to be made right across the country, the number of children’s centres has reduced by around 1%. Like all Members of Parliament, I fight very hard for services in my constituency.
Edward Miliband
The Conservatives are going round saying that children’s centres are safe and there is no threat to them. Things are so bad that the Prime Minister has even signed a petition in his own area to save his local children’s centre. Can he clarify: is the petition addressed to his local Tory council, or is he taking it right to the top?
The Prime Minister
More people are using children’s centres than ever before in our country. The right hon. Gentleman does not want to give the figures, but there are 3,000 children’s centres. This Government can hold their head up high, because we are increasing the amount of money that is going to local councils for children’s centres. That is what is happening under this Government.
Edward Miliband
We all wish the right hon. Gentleman luck in his fight as a local Member of Parliament. Imagine what he could achieve if he were Prime Minister of the country!
I think that we have established the Prime Minister’s double standards in Oxfordshire. Let us take another example. In Tory Essex—[Interruption.] I know that the Tories do not care about children’s centres, but they should hush down a bit and listen. In Tory Essex, they propose to close 11 centres and downgrade 37, whose opening hours will fall from 50 a week to as few as five. So there will be fewer centres, fewer staff and fewer hours. How is that doing what the Prime Minister promised to do before the election, which was to protect and improve Sure Start?
The Prime Minister
Let me tell the right hon. Gentleman what is happening to child care under this Government. For the first time ever, there are 15 hours a week of child care for every three and four-year-old in the country. That never happened under Labour. For the first time, under this Government, there are free child care hours for every disadvantaged two-year-old in the country. That never happened under Labour. Also, to come, there will be tax-free child care under this Government. That never happened under Labour. And the child tax credit has been upgraded by £420 under this Government. That is what is happening, but let me be clear: there is one policy that we will not adopt, and that is Labour’s policy of funding more hours through its bank levy. I will tell you why: Labour has already spent the bank levy 10 times over. The youth jobs guarantee, VAT cuts, more capital spending—Mr Speaker, that is not a policy; it is a night out with Reverend Flowers.
Edward Miliband
Let us talk about the people the Prime Minister associates with—[Interruption.]
Mr Speaker
Order. Let the House calm down. I am concerned, as always, about Back Benchers, and Back Benchers who want to speak should be accommodated, so calm down and let us move on.
Edward Miliband
The Prime Minister obviously wants to talk about who he associates with. He has taken nearly £5 million from Michael Spencer, whose company was found to be rigging LIBOR; he has a party chairman who operated a company under a false name and was investigated for fraud; he has taken millions from tax exiles and tax avoiders; his party has never paid back the money from Asil Nadir—and they are just the people I can talk about in this House. Did not the planning Minister have it right yesterday, when he said
“the single biggest problem the Conservative party faces is being seen as the party of the rich”?
The Prime Minister
How extraordinary that, today of all days, the right hon. Gentleman wants to talk about the people he associates with and takes money from, because what we can now see is that this bank, driven into the wall by this chairman, has been giving soft loans to the Labour party, facilities to the Labour party, donations to the Labour party, has trooped in and out of Downing street under Labour, and is still advising the leader of the Labour party—and yet now we know that Labour knew about his past all along. Why did Labour do nothing to bring to the attention of the authorities this man who has broken a bank?
Edward Miliband
I think we can take it from that answer that the Prime Minister does not want to talk about his planning Minister. Where is the planning Minister? Where is he today? Only last January, the Prime Minister was praising him to the rafters, saying that he was leading the debate. I think that the House should hear more from him. This is what he says about the Tory party: that it stands for people who
“work for private equity”
and
“make a ton of money.”
He is right, isn’t he?
The Prime Minister
We have finally found a public inquiry that the right hon. Gentleman does not want. He comes to the House and asks for inquiry after inquiry into the culture and practices of this and that, but when it comes to the Co-op bank, he is absolutely frightened of it.
This is also an interesting week in which to talk about people on the Front Bench. This week, the right hon. Gentleman referred to his own shadow Chancellor as a “nightmare”. I am sorry; I hate to say “I told you so”, but I have been saying that for three years. However, that is not the most interesting thing in this fascinating exchange of e-mails. Labour’s head of strategy—yes, they do actually have one—replied to the shadow Chancellor:
“When did built to last become a part of our thing?”
I agree. Their policies are not built to last; they are built to self-destruct in about five seconds.
Edward Miliband
What the Prime Minister has shown comprehensively today is that he has no answers on the cost of living crisis facing families up and down the country. That is the truth and his close friend the planning Minister is right. [Interruption.]
Mr Speaker
Order. The House must calm down. Questions will be heard, however long it takes; it is very simple.
Edward Miliband
The Prime Minister’s close friend the planning Minister is right. He says this: there are many people who “don’t like” the Tory party and “don’t trust” its motives, and he says that the Prime Minister is not the man to reach them. What he is really saying is that this Prime Minister is a loser.
The Prime Minister
What this proves is the right hon. Gentleman cannot ask about the economy because it is growing, he cannot ask about the deficit because it is falling, he cannot ask about the number of people in work because that is rising, and he cannot even ask about banking because he is mired in his own banking scandal. [Interruption.] What we have learned in the last fortnight is that he is too—[Interruption.]
The Prime Minister
What we have learned in the last fortnight is that the right hon. Gentleman is too weak to stand up to his paymasters in the trade unions, too weak to stand up to his bankers and too weak to stand up to his shadow Chancellor. We all know that it would be a nightmare, and that is why we are dedicated to making sure the British people do not have to live through it.
Jackie Doyle-Price (Thurrock) (Con)
Q2. My right hon. Friend will recall visiting the London Gateway port in Thurrock, which is now open for business, but is he as appalled as I am to hear that Unite is picketing the potential clients of that port and encouraging its sister unions to boycott any ship that docks there? Is that not more evidence that Unite’s bully-boy tactics cost jobs, not save them?
The Prime Minister
My hon. Friend is absolutely right. I have visited the London Gateway port and it is one of the most compelling things I have seen in recent years about Britain’s industrial renaissance. It is an extraordinary investment that is going to be of huge benefit, bringing about 12,000 direct and indirect jobs. She is absolutely right about the dangers of union intimidation and bully-boy tactics. That is why it is important that we have a review and, frankly, it is important that both Unite and the Labour party take part in that review.
Mr Nigel Dodds (Belfast North) (DUP)
I am sure the Prime Minister will agree that the victims of terrorism deserve not just words of sympathy but our full support and help and must be at the core of any process dealing with the past in Northern Ireland. Given the very worrying statement by the Attorney-General for Northern Ireland overnight, made on his own account and his own behalf and without consultation, does the Prime Minister agree there can be no question of an amnesty for any terrorist atrocities and crimes and that all victims of terrorism deserve truth and justice?
The Prime Minister
First, let me agree with what the right hon. Gentleman has said, which is that the words of the Northern Ireland Attorney-General are very much his own words and not made at the behest of anybody else. I can reassure the right hon. Gentleman that the Government have no plans to legislate for an amnesty for crimes that were committed during the troubles. As he knows, Richard Haass is currently consulting all the Northern Ireland parties on issues from the past as well as parades and flags, and I think that is the right forum in which to discuss these issues.
Sir Tony Baldry (Banbury) (Con)
Q3. General Synod is meeting today and hopefully will find a way to enable women as soon as possible to be consecrated as bishops in the Church of England. If this is successful, will my right hon. Friend and the Government support amendments to the Bishops Act to ensure that women bishops can be admitted to the House of Lords as soon as possible rather than new women bishops having to queue up behind every existing diocesan bishop before we can see women bishops in Parliament?
The Prime Minister
My hon. Friend follows these matters closely and asks an extremely important question. I strongly support women bishops and hope the Church of England takes this key step to ensure its place as a modern Church in touch with our society. On the problem he raises—there is, of course, a seniority rule for bishops entering the House of Lords—the Government are ready to work with the Church to see how we can get women bishops into the House of Lords as soon as possible.
Katy Clark (North Ayrshire and Arran) (Lab)
Q4. Does the PM believe that the proposal from the Conservative Free Enterprise Group, supported by 42 of his own MPs, to put VAT on food and children’s clothes shows the true face of the party he leads?
Mr Adrian Sanders (Torbay) (LD)
I recently joined the Plough and Share credit union in my constituency. Credit unions can help to ensure that a lot of people do not have to go to payday lenders. What more can the Government do to support credit unions and encourage anybody with a few pounds to spare to put them into a credit union and take trade away from awful payday lenders?
The Prime Minister
I am grateful to my hon. Friend for raising this issue. The Government strongly support credit unions and think them a big part of the answer to the problems of payday lending. We have invested £38 million in credit unions and want to see them expand. Also, for the first time, we are properly regulating payday lending through the new regulator and are prepared to consider all the steps that can be taken to sort out this problem.
Alex Cunningham (Stockton North) (Lab)
Q5. Today is universal children’s day, and the Prime Minister will be aware that Save the Children has highlighted the importance of early years in children’s development. Does he accept that the closure of three Sure Start centres a week is undermining the life chances of countless needy children?
The Prime Minister
I would challenge the hon. Gentleman’s figures. Whereas the pot of money for children’s centres was £2.3 billion in 2012-13, it is going up to £2.5 billion in 2014-15; there are 3,000 children’s centres open; and as I said, only about 1% have closed, so I think the Government have an excellent record on this front.
Mr David Burrowes (Enfield, Southgate) (Con)
Q6. Now that the changes to Enfield’s A and E and maternity services have been given the green light—not by politicians and bureaucrats, as happened under the previous Government, but by local GPs—will the Prime Minister confirm that Enfield is getting increased primary care funding and that Chase Farm hospital is getting 24/7 access to urgent care?
The Prime Minister
First, let me pay tribute to my hon. Friend, who I know has worked hard on this difficult issue for his constituents. I understand that the Barnet, Enfield and Haringey strategy has been approved, and once it has been implemented Chase Farm hospital will provide a service giving access to GPs 24 hours a day, seven days a week. Enfield is also getting an increase in primary care funding. That is part of our plan of not cutting but expanding our NHS.
Karl Turner (Kingston upon Hull East) (Lab)
Will the Prime Minister join me in congratulating the good people of Hull on winning the city of culture 2017?
The Prime Minister
I am absolutely delighted to join the hon. Gentleman, and everyone in Hull and around the country, in celebrating this great award of the city of culture to Hull. It is a very exciting opportunity for Hull. We will be able to celebrate the birthplace of Wilberforce and the fact that Andrew Motion lectured there and Philip Larkin was the librarian. Slightly more incongruously, Peter Mandelson is the high sheriff—but every city has its burden to bear. And of course Hull has a fantastic record on popular music. I remember some years ago that great Housemartins album, “London 0 Hull 4”—so named because they said they were the fourth-best band in Hull. I am sure it will be a huge success for Hull and for Humberside more generally.
Mary Macleod (Brentford and Isleworth) (Con)
Q7. My constituency registered 600 new business start-ups last year, putting it among the top-10 places in the UK for new business growth. In preparation for small business Saturday on 7 December, will my right hon. Friend meet me to discuss a review of business rates to encourage future growth, especially in London, where rateable values are very high and therefore rates are excessive?
The Prime Minister
I am very happy to discuss this issue with my hon. Friend, who always stands up for business and enterprise. She refers to the number of start-ups. It is a real success story for our country, with an extra 400,000 businesses now operating. The Minister for Skills and Enterprise, my hon. Friend the Member for West Suffolk (Matthew Hancock), will shortly be telling the House about the 10,000th StartUp loan—a Government scheme that has got off the ground extremely quickly. Of course, there are concerns about business rates, and I am happy to discuss those with her, but may I take this opportunity to encourage all colleagues to take part in small business Saturday? It is a brilliant initiative that worked well in the United States and which will allow everyone to demonstrate how much they care about small businesses on our high streets.
Sarah Champion (Rotherham) (Lab)
Does the Prime Minister agree with his planning Minister that when modern Britain looks at the Conservative party it sees an old-fashioned monolith?
The Prime Minister
We have had some interesting interventions from Front Benchers past and present. I hope I can break records by explaining that a tweet has just come in from Tony McNulty—we remember him—the former Labour Security Minister, saying this:
“Public desperate for PM in waiting who speaks for them—not Leader of Opposition indulging in partisan Westminster Village knockabout.”
So I would stay up with the tweets if you want to get on the right side of this one.
Dr Matthew Offord (Hendon) (Con)
Q8. I refer the House to the Register of Members’ Financial Interests because I have recently returned from a delegation to Israel—[Interruption.]
Mr Speaker
Order. I want to hear the words of Dr Offord, and at the moment I cannot hear them.
Dr Offord
I will repeat my declaration, Mr Speaker. I refer the House to the Register of Members’ Financial Interests as I have recently returned from a delegation to Israel and the Palestinian Authority with Conservative Friends of Israel. On the Israeli streets and in the corridors of power, Iran remains the No. 1 issue of concern. Earlier this week, French President Hollande visited Israel to discuss this matter with Israeli counterparts and appears to have clearly understood Israel’s legitimate concerns. When will our Prime Minister be visiting Israel, our close democratic ally in the region, to discuss the Iranian nuclear issue and other regional concerns?
The Prime Minister
I thank my hon. Friend for his question. I know that many people in his constituency care deeply about this issue and about the future of Israel. I will never forget the visit that I made as Leader of the Opposition, and I look forward to visiting, I hope, next year. I completely understand—
The Prime Minister
Of course. When I went to Israel, I visited not only occupied east Jerusalem but other places in Palestine as well, as is proper. I do understand the very real concern that Israelis have about the potential Iranian nuclear weapon. That is why I spoke to President Rouhani of Iran last night to make it clear that we want a good outcome to these talks, but it has got to be an outcome that takes Iran further away from a nuclear weapon rather than one that retains the status quo.
Mr Peter Hain (Neath) (Lab)
While agreeing with the right hon. Member for Belfast North (Mr Dodds) that there should be no question of an amnesty, surely there is some merit in the proposal from the Northern Ireland Attorney-General that rather than incurring enormous expenditure pursuing crimes committed during the troubles decades ago—where the evidence is difficult, if not impossible, to establish—the justified grievances of victims, including widows of police officers and prison officers, should be addressed in other ways so that Northern Ireland can move on from its hideous past.
The Prime Minister
I have great respect for the right hon. Gentleman’s views on this issue. He served in Northern Ireland and knows how important these issues are. I would make two points. First of all, I do think it is important to allow Richard Haass to do his work about parades, about flags and about dealing with the past. Clearly, the dealing with the past part is the most difficult of the three and the most difficult to unlock. The second point I would make is that we are all democrats who believe in the rule of law and believe in the independence of the police and prosecuting authorities, who should, if they are able to, be able to bring cases, and it is rather dangerous to think that you can put some sort of block on that. But of course we are all interested in ways in which people can reconcile and come to terms with the bloody past so that they can build a viable future and a shared future for Northern Ireland.
Mr David Ruffley (Bury St Edmunds) (Con)
Q9. The people and the businesses of Suffolk are driving economic growth in the east of England, but they are increasingly fearful that the proposed A14 road toll will put Suffolk at a serious competitive disadvantage compared with other counties. Will my right hon. Friend seriously reconsider the current road toll proposal?
The Prime Minister
I will, and I know the Chancellor and the Transport Secretary will, listen carefully to the representations made by Suffolk MPs. I think we have all received representations. The important point is that we want new roads to be built, and we all know there are shortages in terms of the capital expenditure that we can bring forward. That is why the idea of having tolling for some new roads and new schemes is properly worth looking at, but we will listen carefully to colleagues and people in Suffolk, and businesses in Suffolk too.
Mr Tom Harris (Glasgow South) (Lab)
Bereaved parents coming to terms with their loss have no right to paid employment leave, which forces many of them to go back to work far too soon after the death of a child. Will the Prime Minister commit to amending the Employment Rights Act 1996 so as at last to give British parents the legal right and the time to grieve?
The Prime Minister
The hon. Gentleman raises an important issue, and I am happy to look at that, having suffered that experience myself. As a Member of Parliament, it is possible to take a little bit of time to stand back and come to terms with what has happened, because colleagues and the people who help us are ready to step in and do what they can. He has raised an important point; let me look at it and get back to him.
Dr Julian Lewis (New Forest East) (Con)
Q10. If he will rule out the removal of continuous at-sea nuclear deterrence for as long as he is in office.
The Prime Minister
As I told my hon. Friend when he last asked about this issue, if we want a proper, functioning deterrent, we need to have the best. That means a permanent, at-sea, submarine-based posture, and that is what a Conservative-only Government after the next election will deliver.
Dr Lewis
May I reassure my right hon. Friend that that excellent answer will remain on my website for as long as it takes for the pledge to be fulfilled? I notice that he used the words “Conservative-only Government”. Will he reassure the House that never again will Liberal Democrats be allowed to obstruct or delay the signing of the main gate contracts, and will he undertake to sign those contracts at the earliest possible opportunity?
The Prime Minister
I would say a couple of things to my hon. Friend. First, investment in our nuclear deterrent has not ceased. Actually, we are taking all the necessary steps to make that main gate decision possible. Also, we have had the alternative study, which I do not think came up with a convincing answer. I have to say, however, that I do not feel that I would satisfy him even if I gave him a nuclear submarine to park off the coast of his New Forest constituency. [Laughter.]
Mr Speaker
I rather fear that that is true, having known the hon. Member for New Forest East (Dr Lewis) for over 30 years.
Mr Michael Meacher (Oldham West and Royton) (Lab)
Is the Prime Minister aware that, according to The Economist, Britain is now 159th lowest in the world in terms of business investment, just behind Mali, Paraguay and Guatemala? Will he therefore please tell the House when, under his esteemed leadership and that of his Chancellor, Britain can expect to catch up with Mali?
The Prime Minister
I can only conclude that the right hon. Gentleman, too, has been on a night out on the town with Rev. Flowers and that the mind-altering substances have taken effect. The fact is that in the first six months of this year, Britain has received more inward investment than any other country anywhere in the world.
Mr Stephen O’Brien (Eddisbury) (Con)
Q11. Had my right hon. Friend and the Government taken the advice of the Opposition, what would have been the impact on the cost of fuel and what would have been the consequences for families?
The Prime Minister
My hon. Friend makes an important point. Let us look at the cuts and freezes on fuel duty that we have made. Fuel duty would be 13p a litre higher under Labour’s plans than under our plans. To use a simple word, it would be a “nightmare”.
Bill Esterson (Sefton Central) (Lab)
The Prime Minister’s own Education Department has said that it has closed 578 children’s centres. How is that protecting Sure Start?
The Prime Minister
I gave the hon. Gentleman the figures, but I am afraid that he was unable to think on his feet and alter his question. The fact is that there are 3,000 such centres open, and only around 1% have closed.
Neil Parish (Tiverton and Honiton) (Con)
Q12. Aston Manor brewery in my constituency has invested £10 million and created lots of jobs in Tiverton. The OECD has upgraded its forecast for Britain while downgrading global forecasts. Does my right hon. Friend agree that reducing debt is the way to get the economy moving, rather than incurring more debt, as the party opposite would do?
The Prime Minister
I am grateful to my hon. Friend for that question. The OECD forecast that came out this week shows a massive increase in the forecast for UK growth over the next couple of years. Of course, the Opposition do not want to talk about the economy. They told us that we were going to lose 1 million jobs, but we gained 1 million jobs. They told us growth would be choked off, but growth is growing in Britain. That is what is happening. The nightmare of the shadow Chancellor wants to talk about everything else. When it comes to debt, let me just remind him of this important point, which is directly relevant to the issue of debt. The former Mayor, Ken Livingstone, said this:
“Gordon Brown was borrowing £20 billion a year at the height of the boom in the first decade of this century in order to avoid having to increase taxes, because he wanted to increase public spending. It was an act of cowardice.”
That is, if you like, the “daymare”. [Interruption.] We are also hearing ranting from the nightmare.
Mr Speaker
Order. The hon. Lady has a right to put her question and to be heard when she does so, and that is what is going to happen.
Teresa Pearce
Thank you, Mr Speaker. The housing association that is landlord to some of the poorest people in my constituency recently voted its chief executive a non-contractual redundancy pay-off of £397,000. Will the Prime Minister join me in condemning the board’s action and asking for it to be repaid and invested in much-needed tenant services?
The Prime Minister
I am very happy to look at the case the hon. Lady mentions, because some of these pay-offs really are completely unacceptable, and we need to make sure that local authorities properly take responsibility for stopping such high pay-offs. In terms of other parts of the economy, we are making sure that if people are re-employed, having taken these pay-offs, they have to pay back the money. I think that is vitally important, and perhaps it might apply in this case too.
Mr James Arbuthnot (North East Hampshire) (Con)
Does my right hon. Friend agree that a key element of the success of the plan for the Reserves would be if he joined with the Leader of the Opposition in inspiring employers to recognise that its success—because there is no plan B—is in the national interest?
The Prime Minister
I completely agree with my right hon. Friend. This is an important programme for the future of the country. Of course I understand hon. and right hon. Members’ concerns about this, but if we pass the amendment in the name of my hon. Friend the Member for Basildon and Billericay (Mr Baron), that would simply stop us investing in and improving our Reserves, rather than changing the overall stance.
I have noticed that Labour put out a statement today, saying,
“We are not calling for the reforms to be reversed. We are not saying the reforms should be shelved.”
In that case, if they vote against the Government, one can only assume that it is naked opportunism.
Mrs Mary Glindon (North Tyneside) (Lab)
Can the Prime Minister explain to the House why he wanted to delete his pledge of no cuts to public services from the Conservative party website?
The Prime Minister
What we promised is that we would not cut the NHS, and we have not cut the NHS. We made it absolutely clear before the last election we would have to take difficult decisions, but it is because of those difficult decisions that the deficit is coming down, employment is growing, there are 1 million more people in work and our economy is doing better. If we followed the advice of the party opposite, we would have more spending, more borrowing, more debt—all of the things that got this country into the mess in the first place.