Ian Lucas (Wrexham) (Lab)
1. What assessment he has made of the level of business investment by banks in Wales.
The Secretary of State for Wales (Mr David Jones)
Recent Bank of England data show that the availability of credit to businesses, including small and medium-sized enterprises, has increased significantly across the United Kingdom.
Ian Lucas
Businesses in Wrexham tell me that the biggest barrier to growth is the lack of availability of finance. Today Barclays has talked of more redundancies and more bankers’ bonuses. Will the Secretary of State support me by establishing a regional bank for Wales which will be attuned to the local economy, and which will provide the finance for business that will enable the local economy to grow?
Mr Jones
The proposal for a development bank for Wales was floated recently by Professor Dylan Jones-Evans, and I believe that he is now conducting another exercise for Edwina Hart, the business development Minister in Wales. We are certainly prepared to consider the proposal, and, in fact, I have already discussed it with my right hon. Friend the Secretary of State for Business, Innovation and Skills.
Guy Opperman (Hexham) (Con)
Does my right hon. Friend welcome the fact that it was this Government who passed the Financial Services (Banking Reform) Act 2013, which enabled local banks to come into existence and has resulted in the creation of more than 20 new challenger banks, and which the Labour party voted against?
Mr Peter Hain (Neath) (Lab)
Why, instead of coming out with the usual Government flannel, does the Secretary of State not admit that, according to the House of Commons Library, net bank lending—that is, new loans minus repayments—to small and medium-sized enterprises in Wales has been negative over the last two years? Since the third quarter of 2011, small businesses in Wales have paid back to the banks £148 million more than they have been able to borrow, and medium-sized businesses have paid back £186 million more than they have been lent. The truth is that the banking system in Wales is broken, and the Secretary of State is doing nothing about it.
Mr Jones
On the contrary, as my hon. Friend the Member for Hexham (Guy Opperman) has just pointed out, the Financial Services (Banking Reform) Act has put a great deal more power into the hands of customers. It has also done a great deal to repair the damage that was done under the last Labour Administration.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
Many of my constituents continue to be affected by the interest rate swap scandal, when banks were deliberately targeting businesses, and wrecking lives and real economic activity. My constituents Mr and Mrs Bartels, for instance, were deliberately bankrupted by Barclays. What can the Secretary of State do to support the excellent work of the hon. Member for Aberconwy (Guto Bebb) and the all-party parliamentary group on interest rate swap mis-selling to secure justice for Welsh businesses that have been ripped off by exploitative banks?
Nia Griffith (Llanelli) (Lab)
Given that banks are still not doing enough to help entrepreneurs in Wales, does the Secretary of State support his right hon. Friend the Chancellor in his legal pursuit of the European Union to prevent it from capping bankers’ bonuses?
Mr Jones
The position on bankers’ bonuses is entirely clear. In respect of the banks in which the Government have a shareholding, my right hon. Friend the Prime Minister has already said that there will be no cash bonuses of more than £2,000 at RBS and Lloyds Banking Group, and that the Government will veto any proposals to increase overall pay—that is, pay and bonus bills—at RBS.
John Howell (Henley) (Con)
2. What recent assessment he has made of employment trends in Wales.
The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)
Our long-term economic plan is working, and it is working for Wales. The economy is growing, and there have never been more people in work in Wales as unemployment continues to fall. I want to see all parts of Wales share in that positive trend.
John Howell
Can the Minister confirm that, because of the difficult decisions the Government have made, Wales has seen a larger fall in the rate of economic inactivity than any other UK nation?
Stephen Crabb
My hon. Friend is, as ever, exactly right. Wales has seen a larger fall in economic inactivity than any other part of the United Kingdom. We all welcome the fact that 57,000 fewer people are economically inactive in Wales, but that has come about only because of the responsible decisions made by the Government—decisions that were opposed by the Labour party.
Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC)
I do not quite recognise that rosy picture of unemployment rates. Since 2011, long-term and youth unemployment in Wales has quadrupled. That is not something to celebrate. What are the Government doing to ensure that young people are able to find good jobs in Wales? Are the Government going to consider applying for part of the €6 billion European youth jobs guarantee fund, and if not, why not?
Stephen Crabb
Nobody is painting a rosy picture. There is still a long way to go and, in Wales in particular, there are still serious challenges to address. But neither are we in denial about the positive picture that is starting to emerge. That is something that we want all parts of Wales and people from all walks of life, including young people, to benefit from. That is one of the reasons that we are making it easier for businesses to hire young workers through the national insurance holiday for businesses.
Mr Llwyd
We have already heard about the importance of the small and medium-sized enterprise sector to Wales. One thing that would assist it is a further cut in business rates. Are the Government going to consider that, given that roughly 90% of employment in Wales is in the SME sector?
Stephen Crabb
The right hon. Gentleman is right to say that small and medium-sized businesses are the engines of job creation in Wales. They are the ones that are driving the fall in unemployment. Decisions on business rates have largely been devolved to the Welsh Government, and we are taking forward proposals to devolve them entirely, so that is really a discussion that he ought to be having with colleagues in Cardiff.
Mr David Amess (Southend West) (Con)
10. Does my hon. Friend agree with my Welsh relatives that the reduction in the number of people unemployed in the last quarter by 12,000 is entirely due to the fact that the Government’s long-term economic plan is working?
Stephen Crabb
My hon. Friend and his relatives in Wales are right. That is exactly what is happening. There is a long way to go, however. The recovery is patchy, but a positive picture is emerging for Wales. Nobody should be in denial about the growth that we are seeing across Wales.
Owen Smith (Pontypridd) (Lab)
Recent improvements in employment rates in Wales are obviously profoundly welcome, but chronic unemployment continues to dog us. Last week, I met a miner in my constituency who had not worked for 30 years, since the pit closure programme. He, like many others in Wales, wants to know the full truth about the political motivations that lay behind that programme, which poured thousands of Welsh people on to the dole. Does the Minister agree that the papers should now be published in full so that we can know the truth?
Stephen Crabb
I am not going to be drawn on that specific issue, but there is a serious problem with long-term unemployment in Wales, with 200,000 people there who have never worked a day in their lives and 92,000 children living in homes where nobody works. That is exactly why the hon. Gentleman should be supporting what we are doing through the Work programme and our welfare reforms, which are going to benefit exactly those people.
Owen Smith
So a Minister for Wales refuses to engage on the issue of the miners’ strike that poured thousands of people on to the dole in Wales. Is he seriously telling those Welsh miners that they do not have the right to know the truth? Will he take the opportunity, when he comes back to the Dispatch Box, to apologise for the actions of his predecessors and for the political motivations that lay behind that strike?
Stephen Crabb
We understand why the shadow Secretary of State is bringing this politically motivated issue to the Dispatch Box today: it is because he has run out of things to say about the economy in Wales, about unemployment and about growth. Over the past three years, he has been proved wrong on all those issues.
Mr Mark Williams (Ceredigion) (LD)
May I invite my hon. Friend the Minister to congratulate the management of Dunbia on the announcement that 200 new jobs are to be created at Felinfach in the Aeron valley, contributing to the food processing sector that is so important to rural Wales? Those new jobs are good news for Wales.
Stephen Crabb
I join my hon. Friend in welcoming the investment from that meat processing company in his constituency. The agri-food sector is incredibly important to west Wales, and not least to Ceredigion. My hon. Friend represents one of the most important farming and agricultural constituencies in the UK, and the investment by that company is a sign of the growing confidence in the UK economy and the Welsh economy.
Ann Clwyd (Cynon Valley) (Lab)
3. How many fitness to practise cases regulated by the Nursing and Midwifery Council in Wales are waiting to be resolved.
The Secretary of State for Wales (Mr David Jones)
While the Government do not hold the information requested, the Nursing and Midwifery Council advises that there are currently 190 fitness to practise cases in Wales that are waiting to be resolved.
Ann Clwyd
The Health Select Committee drew attention last year to the fact that there were 400 unresolved cases going back over a two-year period. Will the Secretary of State tell us how many of those cases are in Wales and how long they have been waiting for resolution? Is it not unfair on patients in Wales that that matter is still hanging over those hospitals?
Mr Jones
I commend the right hon. Lady for her role in chairing the committee that came up with such an important report on the processing of complaints in the health service.
Although the issue of complaints about nurses and midwives must be one for the Nursing and Midwifery Council, we are clearly anxious to ensure that complaints should be properly investigated. That is why we were extremely pleased that the Welsh Minister for Health and Social Services has now instituted his own inquiry into this issue.
David T. C. Davies (Monmouth) (Con)
Does the Minister agree that people who have complaints about the NHS in Wales under the Labour Welsh Assembly Government are unable simply to cross the border and access the far better treatments, wider range of drugs and shorter waiting lists on offer to those fortunate enough to be served by the Conservative coalition Government in England?
Jessica Morden (Newport East) (Lab)
4. What discussions he has had with the Secretary of State for Justice on the Ministry of Justice’s shared services centre in Newport.
The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)
The Wales Office is in close contact with the Ministry of Justice, which is still at an early stage in evaluating options for the shared services centre in Newport. The Government are committed to ensuring that services are delivered efficiently, while providing value for money for taxpayers.
Jessica Morden
In December, hundreds of workers at the MOJ’s shared services centre in Newport learned that their jobs could be privatised, and obviously the work force has great concern that jobs could be outsourced or offshored, as we have seen with the Government’s model. Given the bad news that Newport received last week with the potential loss of jobs at Avana Bakeries, will the Minister speak up for public sector workers in Newport and tell the MOJ to abandon its plans?
Stephen Crabb
I thank the hon. Lady for her question. On the point about Avana Bakeries, she should be aware that I spoke to that company on Friday afternoon; the scenario is obviously very difficult for the city of Newport.
On the shared services centre, the evaluation of options is, as I said in my initial answer, at an early stage, but the Government will work with staff, trade unions and other stakeholders to assess any impact on staff. We are very mindful of the jobs impact on the hon. Lady’s constituency.
Michael Fabricant (Lichfield) (Con)
5. If he will discuss with the First Minister the standards of education in Wales and of Welsh jobseekers in England; and if he will make a statement.
The Secretary of State for Wales (Mr David Jones)
I am concerned that Wales risks being left behind in the employment market. All young people deserve an education system that provides them with the qualifications, skills and training needed to compete successfully in the global jobs market.
Michael Fabricant
You will know, Mr Speaker, that I served on the Committee that dealt with the Welsh Language Act 1993, that my mother is a Welsh language speaker and that I very much support bilingualism in Wales. However, does my right hon. Friend share my surprise that when I was debating the low standard of education in Wales with the Labour First Minister, he admitted that his Government took their “eye off the ball”? A whole generation of Welsh children was betrayed by the Labour Welsh Government.
Mr Jones
The First Minister clearly did take his eye off the ball. The recent programme for international student assessment—PISA—ratings show the extent to which the Welsh educational system is failing. That is because the Welsh Government are pursuing a course that does not mirror the improvements we are making in England, and I very much hope that the new Welsh Minister for Education and Skills will learn from the reforms we are implementing.
Karen Lumley (Redditch) (Con)
12. My two children were educated in Wrexham in their early years. Does the Secretary of State share my concern about the PISA league tables, which he mentioned? What discussions is he having with the Welsh Assembly Government to try to ensure the very best education for all our children in Wales?
Simon Hart (Carmarthen West and South Pembrokeshire) (Con)
6. What discussions he has had with Ministers in the Welsh Government on waiting times for mental health support for combat veterans in Wales compared with those in England.
The Secretary of State for Wales (Mr David Jones)
It is essential that our veterans receive the best support and medical treatment, including mental health care, available to assist them to rebuild their lives.
Simon Hart
A military veteran living in Carmarthenshire has been told by NHS Wales that he has to wait up to eight months for urgent mental health treatment. The Veterans Association tells me that in parts of England the wait would be seven to 10 days. Will the Secretary of State sort out this problem on behalf of Welsh veterans?
Huw Irranca-Davies (Ogmore) (Lab)
The generosity of Welsh people in donating to mental health charities for veterans is unsurpassed. However, there have been concerns in recent months about the regulation and oversight of some of those charities and of some of the treatments available. Will the Secretary of State meet me to discuss those concerns to ensure that every penny piece that is raised by people in Wales goes towards the very best treatment for our veterans?
Geraint Davies (Swansea West) (Lab/Co-op)
On Friday I met members of Swansea’s Combat Stress group, who told me that the nearest places for in-patient treatment were in Shropshire, Surrey or Scotland. Will the Secretary of State meet me and the Secretary of State for Defence, who is now in his seat, to talk about providing facilities for in-patient care for war veterans in St Athan and the idea of moving units coming out of Germany to St Athan in south Wales to provide much needed employment and economic stimulus?
Guto Bebb (Aberconwy) (Con)
7. What assessment he has made of the effects on Wales of the Government’s policy on superfast broadband roll-out.
The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)
As a result of the £57 million investment by this coalition Government in Westminster, the roll-out of superfast broadband in Wales will transform our broadband network. Last month, it was confirmed that 100,000 Welsh homes and businesses can now get access to superfast broadband.
Guto Bebb
I thank the Minister for his response. I welcome the fact that the roll-out is doing well in Wales. Will he respond to the fact that Llandudno and Llandudno junction, which are key commercial centres in north Wales, are not even scheduled for roll-out as yet? Is that another example of the Welsh Labour Government prioritising south Wales over north Wales?
Stephen Crabb
All Welsh Members of Parliament want their constituencies to be at the front of the queue for superfast broadband. The roll-out implementation plans are agreed between BT Cymru, the Welsh Government and Broadband Delivery UK. If my hon. Friend has specific concerns about that process, will he please raise them with me, and I will ensure that they get an airing?
Glyn Davies (Montgomeryshire) (Con)
14. I represent a very rural constituency where poor broadband is a particularly important issue. Has my hon. Friend made any assessment of the effect of poor internet connections on property values? That issue applies to the whole of Britain as well.
Stephen Crabb
I am not aware of any specific studies on the value of properties with regard to a lack of access to good-quality broadband, but I recognise the point that my hon. Friend makes. High-quality broadband is vital for revitalising the private sector and many of our rural communities.
Mrs Siân C. James (Swansea East) (Lab)
8. What plans the Government have for the future of the Land Registry and jobs in its office in Wales.
The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)
The Government are currently consulting on the proposal to create a new company, still subject to Government oversight, which would be responsible for delivering land registration services.
Mrs James
The Land Registry has a customer satisfaction rating of 98%. As a trading fund, it does not cost the taxpayer anything; indeed, it makes a significant surplus year on year. It made £98.8 million in the past year alone, yet the Government are now consulting to end its trading fund status. Will the Minister confirm that if, as a result of the consultation, the status of the Land Registry is changed to that of a Government-owned company, the people of Swansea will be protected, jobs will be protected and the services will not be changed?
Stephen Crabb
I thank the hon. Lady for her question. I will say again that no decisions on implementation have yet been taken, as all views from the consultation on the right commercial model for Land Registry need to be considered before any decision is taken. None the less, we expect that the majority of staff will be transferred to the new service delivery company, with a small minority remaining in the office of the chief land registrar.
Albert Owen (Ynys Môn) (Lab)
9. What recent discussions he has had with his ministerial colleagues on the effects of VAT on the tourism and hospitality industry in Wales.
The Secretary of State for Wales (Mr David Jones)
Tourism and hospitality play an important role in the economy in Wales, attracting more than 4 million people from across Great Britain between July and September last year. The World Economic Forum has recently ranked the UK fifth in Europe in its travel and tourism competitiveness index.
Albert Owen
Our near neighbours, the Republic of Ireland, and most other European countries have reduced the level of value added tax in the tourism sector, boosting jobs, growth and investment in their countries. The United Kingdom and Wales are among those with the highest rates of VAT in Europe, and, according to an independent inquiry, that has led to the suppression of jobs and investment. Will the Secretary of State lobby the Treasury to ensure that we have a competitive rate of VAT and that we reduce VAT, which is a tax on jobs?
Mr Jones
I am sure that the hon. Gentleman is as happy as I am that tourism expenditure in Wales increased by £746 million over the past year. The United Kingdom is highly competitive in the tourism market. As I said in my initial answer, the World Economic Forum has indicated that the UK is the fifth most competitive economy in Europe, ahead of France, Portugal and Italy.
Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
As in Scotland, VAT on tourism in Wales has a negative effect on the industry. Will he press his Treasury colleagues to ensure a reduction from 20% to 5%, as requested in yesterday’s debate in Westminster Hall, to benefit very scenic constituencies like mine and Carmarthen East and Dinefwr?
Susan Elan Jones (Clwyd South) (Lab)
11. How many people in Wales benefited from the recent reduction in the additional rate of income tax.
The Secretary of State for Wales (Mr David Jones)
Approximately 4,000 people in Wales pay the additional rate of income tax.
Susan Elan Jones
I thank the Secretary of State for that brief response. In his maiden speech as a Member of the Welsh Assembly, the right hon. Gentleman said, “We have no tax-raising powers—long may that state of affairs continue.” As someone who supported the Assembly having tax-levying powers in the 1997 referendum, I find that view extraordinary. Surely the reason he now wants income tax to be devolved to Wales is to cut public services and cut taxes for the rich.
Mr Jones
Rather than concentrating on what I said in 2002, the hon. Lady ought to listen to what her hon. Friend the Member for Pontypridd (Owen Smith) said only last week. The Labour Government in Wales do not want income tax devolved to Wales, but the Conservative and Liberal Democrat coalition Government here in Westminster do.
Julie Elliott (Sunderland Central) (Lab)
13. What assessment he has made of changes in real wages in Wales since 2010; and if he will make a statement.
The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)
Wales had seen the biggest increase in average earnings of all the regions and nations of the United Kingdom, with earnings increasing at twice the national average and more than twice the current rate of inflation. Wage levels are still not where we want them to be, but that is still positive news for Wales.
Julie Elliott
Wales has the highest proportion of people earning less than the living wage, which is outrageous. What are the Government doing to tackle that problem?
Stephen Crabb
My right hon. Friend the Chancellor of the Exchequer has already said where he wants to see the national minimum wage going, as conditions allow. We want to see a strong minimum wage that will benefit low-paid workers. One of the most important things we are doing is taking 130,000 of the lowest-paid people in Wales out of income tax altogether by increasing the personal allowance to £10,000, something the hon. Lady and her colleagues should very much support.
Mr David Hanson (Delyn) (Lab)
Does the Minister accept that wages in Flintshire have dropped dramatically since the election of the Conservative and Liberal Democrat Government and that the situation is not helped by cuts to child tax credits, by the bedroom tax or by other measures they are taking? Will he join my hon. Friend the Member for Wansbeck (Ian Lavery) this afternoon in his plan to introduce a Bill to scrap the bedroom tax?
Stephen Crabb
If the right hon. Gentleman looks at the figures, he will see that the biggest destruction in real wage levels occurred under the last three years of the previous Labour Government, and we are still recovering from the economic trauma of that period. Wage levels are still not where we want them to be, but they are increasing in Wales, which is positive news for people on the lowest incomes.
Mr Speaker
Well, we have got through the lot, the principals are present and the House is expectant, so we can move on to questions to the Prime Minister.
Caroline Lucas (Brighton, Pavilion) (Green)
Q1. If he will list his official engagements for Wednesday 12 February.
The Prime Minister (Mr David Cameron)
This morning I had meetings with ministerial colleagues and others. In addition to my duties in this House, I shall have further such meetings later today.
Caroline Lucas
Our hearts go out to everyone whose lives are being devastated by the current floods. I am sure we all welcome the Prime Minister’s promise yesterday that he will do everything he can both with the relief effort and in building a more resilient country into the future. Does he therefore agree that it would be both complacent and ignorant to flout the warnings of the Met Office and his own advisers, who warn that climate change will lead to even more such events in the future? Can he confirm for the House and for everyone in my Brighton constituency that doing everything he can will include not only reversing cuts to the Environment Agency budget and giving proper funding for flood prevention but, crucially, removing anyone from the Cabinet—[Interruption.]
The Prime Minister
Let me reassure the hon. Lady that I listen very carefully to my experts in the Met Office and in the Environment Agency. Every Cobra meeting starts with a briefing from the Met Office. I think it is clear that we are seeing more extreme weather events, and I suspect that we will go on seeing more extreme weather events. We need to do everything we can to improve the resilience of our country. Let me repeat again that, as I said yesterday, when it comes to this relief effort, money is no object. We will spend what is necessary to help families, to help people and to help communities get through this very difficult time. I have to say that things are likely to get worse before they get better, because of the very high levels of rainfall we have seen—and we are seeing very serious high winds as we speak here in the House today—but whatever can be done to help will be done.
Mark Pritchard (The Wrekin) (Con)
Q2. Last year, my constituent Georgia Williams was brutally murdered. At the subsequent trial, it was revealed that her attacker had previously attacked another young girl five years earlier. Yet, unbelievably, that attacker got off the earlier offence with just a police caution—a written warning. Will the Prime Minister join me in calling on West Mercia police to publish all relevant material relating to that earlier case in order that any lessons that can be learned will be learned?
The Prime Minister
First of all, my hon. Friend is absolutely right to take up his constituent’s case in this way. He has written to me about this specific case. My sympathy goes out to the family and friends of Georgia Williams. As he has asked, I understand that the Independent Police Complaints Commission is currently considering its response to a referral from West Mercia police into the handling of this case and what needs to be published. On the issue of cautions, we announced last year that we are banning the use of simple cautions for all of the most serious offences, including manslaughter, rape and robbery, as well as a range of other offences that devastate lives and tear apart communities. Clearly, this is a tragic case and we must get to the bottom of what went wrong.
Edward Miliband (Doncaster North) (Lab)
I join the Prime Minister in expressing all my sympathies with people who have been affected by the floods, who have been driven out of their homes, and who are facing disruption to their lives. I also join him in paying tribute to all those helping with relief efforts and to the extraordinary resilience we have seen in the past few weeks of the people of our country. He will know that people in affected communities are relieved that help from the armed forces and emergency services has now arrived, but many feel they were sent in too late. With further flooding expected in the coming hours and days, can the Prime Minister provide an assurance that people will be getting help in time, not after the event?
The Prime Minister
I can certainly give that assurance. Let me repeat again that it is important, as the right hon. Gentleman said, to praise our emergency services, to praise volunteers, and to praise all those working for the Environment Agency, who have worked night and day, round the clock, to help our communities. They really have done amazing work, and we should thank them.
In terms of the engagement of the military, I think that this is important. It has always been possible for gold commanders in these emergency situations to call on military assets. Indeed, a military liaison officer is supposed to sit with those gold commanders and liaise with them. What we have done in recent days is to say very clearly to all the local authorities concerned, which we have contacted individually, “If you want military assistance, don’t think twice about it: think once, then ask, and they’ll be there.” We have now got thousands of military at a state of readiness to help out. A huge number have already been deployed; and yes, as we see the levels potentially rising on the Thames again coming into this weekend, we should do everything we can now to get extra help into those communities that could be affected and make sure that they are helped. All the military assistance that is required is there; people only have to ask.
Edward Miliband
I welcome that promise of proactive help from the Prime Minister. Given the forecasts of extreme weather and that river levels are rising, one of the key issues that will concern people is not just their homes but continuing gas and electricity supplies. We have learned from experience in 2007 that protecting electricity substations that can be responsible for power for hundreds of thousands of homes is of particular importance. Can he reassure the House about the steps being taken to protect these vital services?
The Prime Minister
I can give the right hon. Gentleman that assurance. My right hon. Friend the Minister for Government Policy carried out a review into the resilience of our infrastructure. A lot of extra steps were taken following that, and that has made a difference. Also, in the Cobra system, we are monitoring every day those particular bits of infrastructure that could be under threat. In recent days, it has more been about water-treatment works than electricity works.
I also spoke to the Minister responsible for energy policy, my right hon. Friend the Member for Sevenoaks (Michael Fallon), at this morning’s Cobra to make sure that everything is done to contact the energy companies to stand up the people who will be necessary if there are further supply interruptions over the coming days. Since the experience of the problems in Kent after Christmas, the energy companies and the network companies have done a better job at reconnecting people more quickly.
Edward Miliband
I thank the Prime Minister for that answer. One of the reassurances that he provided yesterday, as he said in an earlier answer, was to say that money was no object, but this morning the Transport Secretary said that it is not a “blank cheque”. Will the Prime Minister tell the House exactly what areas of spending yesterday’s promise covers?
The Prime Minister
I was very clear last night, and let me repeat again that, as I said last night, money is no object in this relief effort. I want communities who are suffering and people who see water lapping at their doors to know that when it comes to the military, sandbags, the emergency services, restoring broken flood defences—all of those things—money is no object. To be fair to the Transport Secretary, this is what he said this morning:
“money is not the issue while we’re in this relief job.”
That is what he said. He is absolutely right.
Edward Miliband
The Prime Minister is of course absolutely right about the relief effort. He also said yesterday that he will
“spend whatever it takes to recover from this”
and make sure that we have a
“resilient country for the future.”
Let me give him an example in that context. Yesterday, he praised the staff of the Environment Agency, but it is in the process, this year, of making 550 people dealing with flooding redundant. These are staff who help put in place and maintain flood defences, and help deal with clean-up. If money is no object, as he said, is he committing now to reconsidering these redundancies?
The Prime Minister
Let me tell the right hon. Gentleman exactly what we are doing with the Environment Agency and with the flood defence budget. We are spending £2.4 billion over the four-year period between 2010 and 2014, which compares with just £2.2 billion in the previous four-year period. What I can say to the House—I think that this is important—is that as the waters recede, it will be important for the Environment Agency and for local authorities all to look again at the flood patterns we have seen and the models that they have, and to work out what fresh flood defences will be necessary.
In addition to that, I can tell the House that we will be introducing a grant for all affected home owners and businesses to build in better flood protection as they repair their properties. That will be up to £5,000 per house and per business. On top of that, we are announcing a £10 million fund to help farmers who have seen their land waterlogged day after day, week after week. I can also announce today that we will be deferring the tax payments that businesses have to pay, and all the businesses that have been affected by floods will get 100% business rate relief.
Edward Miliband
Those steps are welcome and will be welcomed across the House, but I am afraid that the Prime Minister did not answer the specific question I asked, which is about the 550 people who work on flood defences who the Environment Agency is planning to make redundant. They are people who are currently helping with the clean-up, and who put in place the flood defences.
Similarly, on the issue of spending on flood defence, the Committee on Climate Change says that we are spending significantly less on flood defence than we should. My question is a simple one: given yesterday’s promise to make sure that we have a
“resilient country for the future”
and will
“spend whatever it takes”,
is the Prime Minister committing now to reconsidering these redundancies and the amount of money we invest in flood defences?
The Prime Minister
Let me tell the right hon. Gentleman what we are doing with the Environment Agency budget into the future. We have set out the figures for the Environment Agency budget in terms of capital spending all the way up to 2020. We have made capital spending pledges only in areas such as transport and flood defences—pledges that no one else is able to match, particularly not if they are committed to a zero-based budget review, but promises we are happy to make so that people can see how much money will be spent on flood defences in 2015, 2016, 2017, 2018, 2019 and 2020. We are only able to make those pledges because we have managed our economy effectively and managed our Budgets effectively.
Edward Miliband
I say to the Prime Minister that he came along to his press conference yesterday and made what sounded like a very grand promise to
“spend whatever it takes to recover from this and to make sure we have a resilient country for the future”.
The simple point that I am making to him is that there are real doubts about that when it comes to making members of the Environment Agency who deal with flooding redundant and the Committee on Climate Change—the expert body that is charged with this—says that the investment in flood defences is not happening. He needs to reconsider those things.
I urge the Prime Minister to ensure this in the coming days: the Government need to speak with one voice on this issue; the response needs to be speedier than it has been in the past; and everyone affected needs to feel that they are getting the help they need. If the Government do that, they will have our full support.
The Prime Minister
What I said last night is exactly what I have said today: when it comes to this relief effort, money will be no object. I do not want people to worry about penny-pinching as they see the vital work that is needed to help them with their houses and to deal with the floods. This is what this Government are doing: we are deploying the military when we are asked for the military; we deployed extra pumps when we were asked for pumps; we are raising the compensation to local government to 100%, because that is what local communities should have. I am only sorry that the right hon. Gentleman seeks to divide the House, when we should be coming together for the nation.
Mr Gary Streeter (South West Devon) (Con)
I thank my right hon. Friend for his recent visit to Plymouth to discuss our broken rail link. Will he commit our Government to finding long-term solutions to providing rail resilience in the far south-west? Will he join me today in sending a very clear signal to the rest of the country that, despite our current problems, Devon and Cornwall are firmly open for business?
The Prime Minister
My hon. Friend is absolutely right. That message needs to go out loud and clear. Businesses, including tourism businesses, in Cornwall and Devon want people’s custom and want people to know that the peninsula is very much open for business. On his specific question, yes we are finding £31 million to fund 10 rail-resilience projects in the south-west to improve the resilience against flooding. That will include work at Cowley bridge junction, Chipping Sodbury, Hinksey, Whiteball tunnel and a number of other places including Honiton and Crewkerne. Clearly, the most important thing is that Dawlish rail link. I saw for myself yesterday the intense damage that has been done to that track and the huge destruction that was wrought by the waves. That work will take up to six weeks. I know that Network Rail is working as hard as it can. I have said to it that for any help that it needs, it needs only to ask.
Andy Sawford (Corby) (Lab/Co-op)
Q3. If he will review the Government’s policy not to disclose the identity of companies that are made to pay penalties in respect of non-payment of the minimum wage. [R]
The Prime Minister (Mr David Cameron)
We are the first Government to name and shame employers that fail to pay the minimum wage. The name of the first company was published in 2011. We have revised the scheme to make publication easier, but I am not satisfied that that is going fast enough. The identity of companies that have been found to have broken the law will be made public very soon.
Andy Sawford
I thank the Prime Minister for that response. However, two employment agencies in my constituency have recently been found not to have been paying the minimum wage to their workers and have had to pay penalties, but the Government say that they have to protect the confidentiality of those companies. My constituents think that the Government are standing up for the wrong people—the rip-off agencies—rather than the workers. Will he look at that matter?
The Prime Minister
As I said, we will publish the names of those companies—something that never happened under the Labour party. We are taking action. When it comes to penalties for not paying the minimum wage, last year more than 700 employers received penalties for failing to comply with minimum wage law and the value of those penalties was almost seven times higher than in the final year of the last Labour Government. We hear a lot of talk about enforcing the minimum wage from the Labour party, but there is a lot of action from this Government.
Mr David Ruffley (Bury St Edmunds) (Con)
Q4. Crime is down by 10% and our excellent Home Secretary’s police reforms are allowing good officers to do more with less. Will the Prime Minister implement the Normington reforms of the Police Federation immediately so that police culture can be further improved?
The Prime Minister
We are working with the Police Federation on this issue, and it is clearly an organisation in need of reform. To be fair, the new head of the Police Federation—whom I have met—recognises that and wants to act, and I think we should support him in sorting out that organisation so that it better represents its members.
Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)
Q5. Two weeks ago, the Chief Secretary to the Treasury refused to rule out any further tax cuts for millionaires, but last week he said that that would be over his dead body. Can the Prime Minister help him out today by ruling out any further tax cuts for top earners, or should his Chief Secretary be looking to up his life insurance?
The Prime Minister
I saw the Chief Secretary this morning at Cobra and he looked alive and well to me, so the hon. Lady does not have any worries on that front. I have said that that is not our priority; our priority is to cut taxes for low and middle earners, and that is what we have done. When it comes to April this year, her constituents will be able to earn £10,000 without paying any income tax at all. That is equivalent to a 10% increase in the minimum wage, and means that their income tax bill will have gone down by two thirds under this Government. Those are the sorts of tax cuts that we are interested in.
Mr David Heath (Somerton and Frome) (LD)
May I thank the Prime Minister and Deputy Prime Minister for their personal engagement with our issues on the Somerset levels, and may I ask the Prime Minister a question that I do not think the Secretary of State for Communities and Local Government quite grasped on Monday? When the emergency, the crisis phase of this problem, is over, we must have sustainable plans to protect people on the Somerset levels. That will require a revenue stream that will come through local government, and that means changes to the way that is administered. When we have those detailed plans, will the Prime Minister meet me and others from Somerset to ensure that we have a sustainable future?
The Prime Minister
I am very happy to meet the hon. Gentleman and other MPs from Somerset, and I have visited twice to see for myself. The problem at the moment, as we know, is simply the pumping capacity. It is now taking 3 million tonnes—soon 5 million tonnes—of water off the Somerset levels, but because there are 65 million tonnes, or more, of water on the levels, it is going to take time. What we need to do once that water level starts to come down is get the dredging going, and then work out the long-term programme for ensuring that this man-made environment is properly looked after by man, so that it is sustainable for the future. I am very happy to meet the hon. Gentleman and discuss that.
Alison Seabeck (Plymouth, Moor View) (Lab)
Q6. Conditions outside are dreadful; the voluntary sector, emergency services and individuals have been amazing, but people and businesses are angry. In my region, the south-west, people are angry because of what they see as the excessive costs of High Speed 2, when the whole of the west country is without a resilient rail network. The money that was announced—reannounced—today, is welcome but not enough. Will the Prime Minister commit in the medium term to ensuring that he supports growth and recovery in the region, and that Plymouth is put on the strategic road transport network? It is not there at the moment, and it should be.
The Prime Minister
I would make three quick points to the hon. Lady. I totally understand her concern and the concern of her constituents. First, I do not want anyone to be under the misapprehension that HS2 will be built at the expense of the west country—it will not. In the next Parliament, we will spend three times more on other road and rail schemes as we will spend on HS2, and some of those schemes will directly benefit people in the west country. Secondly, while we are working as fast as we can to restore the Dawlish link, we need to look at longer-term alternatives, and I have discussed that with Network Rail and First Great Western to see what more can be done. Thirdly, in the meantime, while Dawlish is as it is, we need to go on boosting the air services to the peninsula. That is why I met Flybe in Newquay. It has doubled the number of flights and we have taken £5 off the cost of each of those flights. We also need to make sure that the replacement bus services are as good as they can be. If we do all those things, that will lessen the impact of this tragedy for the west country.
Neil Carmichael (Stroud) (Con)
Q7. With flooding in Frampton for residents and for businesses in Woodchester, and more risks to my constituency associated with warnings for the Severn estuary, does the Prime Minister agree that the action taken so far by various agencies and councils has been helpful? Can he reassure my constituents that the Government will continue to invest in flood defences?
The Prime Minister
I can certainly give my hon. Friend that assurance. He is right to mention the difficulties on the River Severn, because the River Severn, the River Tame and the River Wye are all expected to respond to recent rainfall, and levels are likely to go up. In terms of the Thames, I should tell the House that a second peak in Thames levels is expected on Sunday and Monday, which could potentially put 800 properties at risk. We will go on doing whatever we can to help people—getting people to communities before they are flooded. It is worth making the point, to be fair to the previous Government as well as this one, that all the schemes that have been built since the 2007 floods, when 55,000 homes were flooded, are now protecting well over 1 million properties that would have been flooded this time around, were it not for the important work that has been done.
Mr William Bain (Glasgow North East) (Lab)
Q8. This week Shelter found that house prices have been rising faster than wages in most parts of the country. Does the Prime Minister not agree that the lack of affordable housing is making the cost of living crisis worse for millions of people across our country? Will he confirm that this Government have presided over the fewest new homes built since the 1920s?
The Prime Minister
Housing starts are up from the dreadful situation we were left by the previous Government. We are now investing huge amounts into affordable housing. I make no apology for the fact that it is right to deal with the demand side on housing, as well as the supply side. Programmes such as Help to Buy are helping to get builders building, because builders will not build unless they believe that buyers are able to buy. We are fixing this problem and house building is rising.
Alok Sharma (Reading West) (Con)
Parts of my constituency are suffering from flooding. I want to put on record my thanks to the council officers from West Berkshire council and Reading borough council, the volunteer flood wardens in places such as Purley and the soldiers of the 7th Battalion the Rifles for the work they are doing to help my constituents. I welcome the schemes the Prime Minister has talked about to help individuals and businesses. Will he ensure that the details of those schemes are made available to everyone affected, so that they can make use of them?
The Prime Minister
My hon. Friend makes an important point. I know that he is working very hard to bring people together in his own constituency to make sure that everything that can be done in Reading is done. Obviously, they will be concerned about the rise in the Thames. We will publish details of all the announcements I have made, and we will add into that the fact that the major banks are coming forward with more than £750 million of financial support, which will mean repayment holidays, reduced or waived fees, loan extensions, increased flexibility of terms and specialist support teams deployed on the ground for businesses and farmers who desperately need help. It is a time for our insurance companies and our banks to demonstrate real social responsibility. I believe that they are beginning to do that and we should encourage them to do so.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
Q9. Does the Prime agree that, after months of letting energy companies get away with increasing their profits on the back of hard-working people across the country, the Energy Secretary’s letter to the regulator this week was simply too little, too late?
The Prime Minister
The Energy Secretary was right to write to Ofgem, because it is part of the competition review we have announced. It is on this side of the House that we have delivered the £50 off bills by rolling back the cost of the green levies. That is the right approach, rather than promising a freeze that only means prices will go up.
Lorely Burt (Solihull) (LD)
Does the Prime Minister agree that the success of coalition policies in helping to create more jobs than forecast is very encouraging? Does he also agree that to get sustained growth we need businesses to invest more? Will he do all he can to support my right hon. Friend the Chief Secretary in encouraging more business investment?
The Prime Minister
In this next stage of the recovery, an increase in business investment is what we need to see. I think there are positive signs from the last GDP numbers. My hon. Friend talks about there being more jobs than forecast. It is worth remembering that the Leader of the Opposition told the CBI in October 2010:
“They have a programme which will lead to the disappearance of a million…jobs.”
Since he made that statement, we have seen 1.6 million new private sector jobs and 1.3 million more people in work—more forecasts like that please.
Rushanara Ali (Bethnal Green and Bow) (Lab)
Q10. With almost 1 million young people unemployed and the Work programme, in the Chancellor’s own words, underperforming, will the Prime Minister think again and introduce Labour’s youth jobs guarantee?
The Prime Minister
The Work programme has done an excellent job in getting people into work. If we look at the job creation record under this Government, we see, as I have just said, 1.3 million more people in work, a reduction in youth unemployment and a reduction in long-term unemployment. There are more people in our work force than ever before. There is always more to do to get young people into work. The best schemes we have had are those such as the work experience scheme, which seem to be providing real hope and jobs for our young people.
Oliver Colvile (Plymouth, Sutton and Devonport) (Con)
May I thank my right hon. Friend for coming to Plymouth on Monday to see for himself how hard First Great Western is working to try to get trains back on track? One thing that would be incredibly helpful would be to ensure we have a timetable for those actions so that we can deliver a resilient railway line as well.
The Prime Minister
I completely understand my hon. Friend’s concern. Obviously the gap in rail provision created by the Dawlish disaster will take time to deal with. Above and beyond that, I know that what he and people in Plymouth want is a timetable for achieving a three-hour service to Plymouth and for more trains to arrive early in the morning. As I have said, we have a longer-term programme of looking at rail alternatives at the same time as restoring the Dawlish line.
Stephen Timms (East Ham) (Lab)
Q11. With economic growth delayed for three years after the election, we have been left—[Interruption.] We have been left with more young people out of work long term than at any time for 20 years. Surely we must do more so that we do not waste the potential of a generation.
The Prime Minister
I can only think that the right hon. Gentleman is suffering from a form of memory loss. He was a Treasury Minister when we lost 7% of our GDP, when youth unemployment doubled, and when people were being thrown out of work. Under this Government, 1.3 million more people are in work, young people are getting back to work and, while countries elsewhere are struggling, our economy is growing. That is partly because we took tough and difficult decisions to get the budget deficit, which he and his henchmen left us, under control.
Mr Adrian Sanders (Torbay) (LD)
Unfortunately, some tourist concerns in my constituency have reported lost bookings, partly as a result of over-sensationalising of the crisis. When the crisis is over, will the Prime Minister talk to the Treasury about allocating a sum of money to market the far south-west to potential visitors and businesses, to get the message across that we really are open for business?
The Prime Minister
This was a point made to me by a number of the businesses that I visited in Cornwall and Devon over the last couple of days, all wanting to see much more advertising and publicity about how the area is open for business. I will take every opportunity I have to help with that issue. When the Dawlish line is restored, it will be a big moment to market the benefits of Devon and Cornwall, where I have been on holiday myself.
Richard Burden (Birmingham, Northfield) (Lab)
Q12. May I invite the Prime Minister to recall the day that he asked the country to imagine a Tory Government who would be the most family-friendly in Europe? When he reflects on that day, will he also consider the recent report from the Centre for Economics and Business Research that shows that the cost of raising a child and getting him or her through university has risen by £5,000 in one year? Does he think that for most families money is no object?
The Prime Minister
Many families have faced a very tough time in this country, not least because of the appalling recession that we had under the Labour party. But this Government have taken steps to encourage flexible working; we are introducing tax-free child care; and we have supported more child care for more families than the last Government did, helping two, three and four-year-olds. We have the new rules on shared parental leave and, above all, many families now have someone in work because the economy is moving and businesses are employing people. Those 1.3 million extra jobs mean 1.3 million more families with the security and peace of mind of a regular pay cheque coming in. That is the best way to help our families.
Mr Brian Binley (Northampton South) (Con)
May I remind the Prime Minister that in 1998 Northampton suffered serious floods, sadly killing two people and affecting 2,000 houses? Since that time I have noticed that we have not over-bothered not to build on floodplains. After this episode has been dealt with and his time is more readily available, will he ensure that we do not build on floodplains so that people are not inconvenienced in this way?
The Prime Minister
I will look very carefully at what my hon. Friend says. The figures suggest that, in applications to build properties on flood plains, the official advice, which includes the advice from the Environment Agency, is followed on 99% of occasions. It is worth remembering that areas such as London are part of flood plains, so it is not possible simply to say that no house can ever be built on a flood plain, but we need to look at the rules, listen to the experts and ensure we build only where we can protect.
Graeme Morrice (Livingston) (Lab)
Q13. Thanks to Labour in the Scottish Parliament, Scots may soon be free of the iniquitous bedroom tax, so will the Prime Minister today give an assurance to the House and the Scottish people that he will work with the Scottish Government to help bring that about, or, better still, scrap that hated tax for everyone in Britain? If he will not, Labour will.
The Prime Minister
Obviously, under our devolved system, different parts of the United Kingdom can make different decisions to spend money as they choose. My view is that it is not fair to tell someone in private rented accommodation that they do not get money for extra bedrooms and tell someone in social accommodation that they do. It is a basic issue of fairness, which is why it has overwhelming public support.
Mr David Amess (Southend West) (Con)
Q14. Last week, I undertook a one and a half hour walk organised by Guide Dogs for the Blind to experience at first hand the difficulties that blind and partially sighted people experience as pedestrians—it was very tricky. Will my right hon. Friend look carefully at the recommendations of that organisation on shared surface streets?
The Prime Minister
I will look carefully at what my hon. Friend says. Everyone has noticed the huge amount of improvements that have been made to the way in which streets, traffic lights and pavements are arranged for that purpose. I am happy to look at what he says and see what more needs to be done.
Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)
Q15. If the Prime Minister believes that flood defence is so important, why did he cut the budget when he came into office?
The Prime Minister
As I have explained, we will be spending £2.4 billion in this four-year period, which compares with £2.2 billion under Labour. I think the hon. Gentleman will find that 2.4 is more than 2.2. Also, by setting out the spending figures all the way up to 2020, he must ask the shadow Chancellor, who is back in the gesticulation game, whether, if he has a zero-based budget review, he has to admit to his colleagues that he cannot guarantee to match any of the spending we have announced. Silence.
Mr John Baron (Basildon and Billericay) (Con)
The Prime Minister is aware of a cross-party group of some 80 MPs campaigning for recognition of our nuclear test veterans. Given that the UK compares poorly with other countries on the treatment of veterans and the very high incidence of ill health suffered by their descendants, will the Prime Minister meet us? We have hit a brick wall with the Ministry of Defence and the Government have a good track record of recognising past wrongs.
The Prime Minister
My hon. Friend has consistently campaigned on that. I have discussed it with him before and wrote to him a month ago setting out the Government’s view. The frequently stated position of this Government and previous ones is that there is no published peer-reviewed evidence of excess illness or mortality, but it is right to go on looking at the issue, as I know he will. We will continue to discuss it with him.