(10 years, 7 months ago)
Commons ChamberRead Hansard Text Read Debate Ministerial Extracts
Rory Stewart (Penrith and The Border) (Con)
1. What assessment he has made of the potential effects of Scottish independence on border parliamentary constituencies.
The Secretary of State for Scotland (Mr Alistair Carmichael)
As a United Kingdom, we all have better job opportunities, employment and mobility. Every day, 30,000 people travel between Scotland and England for work. If Scotland were to leave the United Kingdom, our border constituencies would be the first to feel the effects of the creation of an international border.
Rory Stewart
Does the Secretary of State agree that one of the challenges of separation would be that our focus would be lost and our energy dissipated by looking at the details of administration and borders, rather than all the opportunities in the world, from Brazil to Indonesia?
Mr Carmichael
That is one of the many downsides a vote for independence would bring. It would be an unnecessary distraction that would indeed remove our focus from the opportunities that being part of the United Kingdom give us to develop Scottish business by looking overseas.
Mr Brian H. Donohoe (Central Ayrshire) (Lab)
On the question of separation, surely it is understood that divorce can be messy and that in this case it certainly would be messy? What I have been told by businessmen in my area is that they will move out of Scotland if separation takes place.
Mr Carmichael
I think we all know that what matters to business is the bottom line: the profit and loss account and the balance sheet. If businesses felt that independence was going to be good for them, they would be lining up to support it. Since the turn of the new year, we have heard a steady chorus from the business community, who have all been coming out to underline the risks and uncertainty that would come from independence. [Interruption.] These are voices that the hon. Members on the nationalist Benches may wish to drown out with their incessant chatter, but they will not do it.
Michael Moore (Berwickshire, Roxburgh and Selkirk) (LD)
Anybody who pauses at the top of the hill on the Carter Bar on the A68 is able to reflect on one of the most beautiful views of Scotland and on one of the most beautiful views of England, and reflect on the fact that these two countries have so much in common and so much shared family experience. Does my right hon. Friend share my hope that that will always be the case, rather than it marking the border point between two separate states?
Mr Carmichael
I very much agree with my right hon. Friend. I always think of the United Kingdom as being a family of nations. Of course, like all families, we do have those moments where we have disagreements, and we do occasionally want to do things in a slightly different way, but as a family the ties that bind us are so much greater than the differences that divide us. That is why I believe that Scotland, come 18 September, will choose to remain part of that family of UK nations.
Angus Robertson (Moray) (SNP)
But the people of the borders and the rest of Scotland are being subjected to the self-styled “project fear” campaign, which its own supporters describe as negative, nasty, and threatening, and who also say that the Prime Minister is toxic in Scotland. Why are even the Secretary of State’s own colleagues saying this?
Mr Carmichael
I have to say that it is a bit rich to hear the right hon. Gentleman talking about “project fear” when the First Minister went to Carlisle on St George’s day to deliver a lecture that I can only describe as project ridiculous. The fact of the matter—there is no escaping this for the nationalists—is that for people living in the constituencies on either side of the border, there are real benefits to being part of the United Kingdom. The nationalists want us to walk away from those benefits.
Angus Robertson
Leading members of the right hon. Gentleman’s own campaign have told people in the borders and the rest of Scotland that they will have to show a passport at the border; drive on the right-hand side of the road; worry about their pensions, when in this place people are being told that they are safe; and that they will not be able to use their own currency, when the media in London are being briefed that that will be safe. Why do his colleagues think that the people of the borders and the rest of Scotland will fall for this demeaning, insulting nonsense?
Mr Carmichael
The question of the borders highlights perfectly how the Scottish nationalists want to have their cake and eat it. On the one hand, they tell us that we could have a common travel area, which works very well with the Republic of Ireland at present. At the same time, they tell us that we will have a widely divergent immigration policy, which the Republic of Ireland does not have. They can have one thing or the other: they cannot have both. That is why their prospectus is flawed.
John Stevenson (Carlisle) (Con)
In places such as Carlisle, many businesses have branches and offices on both sides of the border. Does the Secretary of State agree that if Scotland votes yes there is a real danger that there will be such an additional burden on those businesses that it will have an effect on jobs and economic prosperity on both sides of the border?
Mr Carmichael
Inevitably, an independent Scotland would have a different taxation system, different national insurance provisions and different economic regulations, and that would impose an extra cost on business. The financial services sector, which supports 200,000 jobs in Scotland, has already issued serious warnings about what would happen to its business and how it would organise itself if Scotland became independent.
Katy Clark (North Ayrshire and Arran) (Lab)
2. What discussions he has had with his ministerial colleagues on the effects of housing benefit changes in Scotland.
Sandra Osborne (Ayr, Carrick and Cumnock) (Lab)
9. What discussions he has had with his ministerial colleagues on the effects of housing benefit changes in Scotland.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
I have had regular discussions with ministerial colleagues about the effect of housing benefit changes in Scotland, and in particular about the application of discretionary housing payments to those affected by the removal of the spare-room subsidy. Those discussions led to the announcement on Friday 2 May that the setting of the limit for such payments could become the responsibility of the Scottish Government.
Katy Clark
In February the Scottish Parliament voted in favour of full mitigation of the bedroom tax, but much of that money has not yet reached tenants. Given that there has been a discussion about the discretionary cap, does the Minister agree that the Scottish Government could have acted earlier, and, given that an announcement has now been made, will he do everything in his power to ensure that there is co-operation between Westminster and the Scottish Government so that the money reaches the people who need it?
David Mundell
I entirely agree with the hon. Lady. The Scottish Government already had powers that they could have used to take other steps for the purpose of the mitigation that they said was necessary, but they chose not to do so. The Scottish Parliament forced additional funds to be provided, and we will not stand in the way of the spending of those funds. I shall be meeting the Deputy First Minister of Scotland tomorrow morning, and I shall convey the hon. Lady’s comments to her.
Sandra Osborne
Does the Minister agree with the far-reaching proposals of Scottish Labour’s devolution commission, including the proposal for the devolution of housing benefit? Does he agree that that would be a progressive, logical and practical step that would enhance devolution and the ability to meet Scottish housing needs?
David Mundell
I think that the proposal to devolve the setting of the cap for discretionary housing payments is a positive step, and I welcome the fact that the Labour party has presented proposals. At the end of May, the Scottish Conservative party will present its proposals following the outcome of the work of our own devolution commission.
Mary Macleod (Brentford and Isleworth) (Con)
An important part of dealing with housing benefit is ensuring that there is enough affordable housing. Does my right hon. Friend agree that the lack of suitable affordable housing in Scotland is the result and the responsibility of successive Scottish Governments?
David Mundell
I do agree with my hon. Friend. She will be aware that since 2010 the Scottish Government have had an additional £1.3 billion in funding that they could have used to provide affordable housing in Scotland. We used to hear constantly in the Chamber about the number of shovel-ready projects in Scotland, but we have not seen much shovelling.
Dr Eilidh Whiteford (Banff and Buchan) (SNP)
The bedroom tax has been a costly fiasco in Scotland. It should never have happened, but I am glad that the Government have at long last agreed to allow the Scottish Government to mitigate its worst impacts. However, the Secretary of State recently boasted that we have a “fantastic” benefits system. Does the Minister think that he was talking about the bedroom tax, or is he also living in a parallel universe?
David Mundell
I certainly do not live in the universe that the SNP inhabits. It has not given us a single detail of how a welfare system would operate in Scotland. Indeed, in the 670 pages of the Scottish Government’s White Paper, there is just one reference to the establishment of such a system. The SNP set up a commission, but we have heard nothing from it, so I am afraid that I shall take no lessons from the hon. Lady.
Mr Ian Davidson (Glasgow South West) (Lab/Co-op)
Does the Minister accept that, now that the Scottish Government have been given the powers for which they asked in relation to discretionary housing payments, there is no reason why they should not first cancel all the bedroom tax for this year, and then write off all the debts that were incurred last year? In order to ensure that no moral hazard is involved, should they not do as the Scottish Affairs Committee has asked, and refund the money that Scottish people paid last year in bedroom tax?
David Mundell
I understand that a statement is to be made about the matter in the Scottish Parliament today, and I am sure that the hon. Gentleman’s colleagues will raise those very points with the Scottish Government.
John Robertson (Glasgow North West) (Lab)
3. What assessment he has made of the effects of recent trends in household energy bills on standards of living in Scotland; and if he will make a statement.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
Rising energy bills are a serious concern for consumers in Scotland and across the rest of the UK. We are increasing competition, sustaining vital financial support for vulnerable consumers, and working to ensure suppliers put customers on the cheapest tariff.
John Robertson
I thank the Minister for his answer. Does he agree that with the closing of coal-fired power stations and a doctrine of anti-nuclear power stations north of the border, under independence, with the reliance on renewables, energy costs must increase?
David Mundell
I certainly agree with the hon. Gentleman about the serious loss to the Scottish economy of closing the door on the nuclear industry, which has brought so much benefit to Scotland, and I pay tribute to him for being such a champion of that cause. He is right that energy costs will go up in an independent Scotland, as set out in the Government’s analysis on energy.
Guy Opperman (Hexham) (Con)
Both in Northumberland and in Scotland people are setting up oil-buying clubs to deal with the problem of off-grid energy. Does the Minister agree that the best way to combat energy problems and price rises in off-grid circumstances is to copy this good measure and spread it out across the country?
David Mundell
I absolutely agree with my hon. Friend. Oil clubs are developing in Scotland and the Government are keen to promote and support them. I commend him for highlighting this issue.
Mr Mike Weir (Angus) (SNP)
11. If the Minister is genuinely concerned about rising costs of energy in Scotland, why is it that Ofgem has yet again delayed the implementation of Project TransmiT, which would finally begin to tackle the discriminatory and expensive transmission charges? Will he press his colleagues to implement it immediately?
David Mundell
Project TransmiT is one matter on which I am probably in agreement with the hon. Gentleman. The important thing for Scotland is to get the right answer. Yes, it is disappointing that it has taken some time, but the Scotland Office is determined to work towards getting the right answer, and I urge him and his colleagues to continue to press Ofgem on this as well.
Margaret Curran (Glasgow East) (Lab)
Will the Secretary of State explain why, when the Prime Minister said that consumers in Scotland would be £50 better off after cuts to the green levies, hundreds of thousands of Scottish consumers have seen their bills decrease by only £12?
David Mundell
There is no reason why consumers in Scotland should not be seeing this £50 benefit, and the Government will continue to do all we can to make sure that they do.
Margaret Curran
That is the definition of an inadequate answer, and perhaps goes some way towards explaining why Labour’s policy has gained widespread support across Scotland. In opposing Labour’s energy freeze, the Tory-led Government have had the full support of a surprise friend in the form of the Scottish National party, and it does not stop there: standing up for energy companies, failing to take action on the living wage, proposing tax cuts for those at the top. Does the Minister not agree that Scotland deserves better than this?
David Mundell
What I believe is that we do not take any lectures from Labour on energy issues. Gas bills more than doubled under Labour, electricity bills went up by 50%, the leader of the Labour party was responsible for £179 of additional levies on gas bills and fuel duty went up 12 times. I am proud of this Government’s record on energy and Scotland is doing well under it.
David Mowat (Warrington South) (Con)
4. What discussions he has had with Ministers in the Scottish Government on the potential role of the Bank of England in the event of Scotland becoming an independent country.
The Secretary of State for Scotland (Mr Alistair Carmichael)
I have not had any discussions with Ministers in the Scottish Government on the potential role of the Bank of England. If people in Scotland vote to leave the UK, they are voting to leave the UK institutions that support it, such as the Bank of England, which will continue to operate on behalf of the continuing UK.
David Mowat
I thank the Secretary of State for that answer. The majority of my constituents hope very much that Scotland will stay in the Union, but for the avoidance of doubt, will he confirm that in the event of a yes vote, there are no circumstances under which my constituents will underwrite the borrowing and spending plans of an independent Scotland, whichever currency it uses?
Mr Carmichael
I thank my hon. Friend for his support for the continuation of Scotland within the United Kingdom. The position on any currency union or central banking arrangements if Scotland were to vote for independence has been made very clear recently by the Chancellor and the Chief Secretary and also by the shadow Chancellor: there will be no such arrangements.
Ian Murray (Edinburgh South) (Lab)
In the event of an independent Scotland, will the Bank of England’s Monetary Policy Committee take its instructions from the UK Treasury or the Scottish Government?
Mr Carmichael
The Bank of England will continue to take its instructions from the UK Treasury. It is a UK institution and that would not change.
Mr Philip Hollobone (Kettering) (Con)
If Scotland separated from the United Kingdom, how would the UK’s foreign exchange reserves be reallocated?
Mr Carmichael
That would be a matter to be determined in the event of Scotland voting to leave the United Kingdom. I very much hope that will not come to pass.
Stewart Hosie (Dundee East) (SNP)
The Bank of England has already sensibly engaged in technical discussions with the Scottish Government. As each day passes and a yes vote on independence becomes more likely, is it not about time this Government abandoned their bellicose scaremongering and also engaged in sensible discussions with the Scottish Government on how these institutions can continue to work, in the best interests of both countries?
Mr Carmichael
Both Governments agreed in the Edinburgh agreement that there would be no question of pre-negotiation. That was a sensible situation and I am astonished that the hon. Gentleman now seeks to walk away from it.
Sir Malcolm Bruce (Gordon) (LD)
Does the Secretary of State agree that the Bank of England is not an asset to be shared but an institution that belongs to the United Kingdom which Scotland chooses to leave? Does he also agree that it is an extraordinary kind of independence where one wants to hand over control of one’s fiscal and monetary policy to a foreign bank?
Mr Carmichael
My right hon. Friend puts it perfectly. The difference between an asset and an institution is not a difficult one to understand, but the Scottish nationalists do seem to struggle with it.
Michael Connarty (Linlithgow and East Falkirk) (Lab)
5. What discussions he has had with Ministers in the Scottish Government on a potential currency union with an independent Scotland.
The Secretary of State for Scotland (Mr Alistair Carmichael)
I have not had any discussions with the Scottish Government about the prospect of a currency union. The Chancellor, Chief Secretary and shadow Chancellor have all said there will not be a currency union. The only way to keep the UK pound is to stay in the UK.
Michael Connarty
I thank the Secretary of State for that reply. Having read the fiscal commission’s report, it is clear that it took the advice that I have been giving Scottish National party colleagues here that they would be destroyed if they went into the eurozone, where the stability and growth pact would destroy their economy. If they have no currency union with the UK, exactly what prospects are there for the 8% deficit that Scotland is running at the moment?
Mr Carmichael
The position is very clearly laid out: the difficulties that would be created by the currency union would be difficulties for the whole of the United Kingdom, but particularly for the people of Scotland. If we are to be independent, we need to be independent with all that that means. It is not possible to be half independent.
Michael Fabricant (Lichfield) (Con)
Is my right hon. Friend aware that Moody’s has stated that if Scotland were to gain its independence it would downgrade Scotland’s credit rating to B? What effect would that have on Scotland’s interest rates?
Mr Carmichael
The comments and report by Moody’s last week have to be taken very seriously and read with some care. Moody’s makes it clear that on its estimation an independent Scotland would be rated two levels below the rating the UK currently enjoys. For the people of Scotland that would mean more expensive store cards, more expensive overdrafts and more expensive mortgages. We are cheaper as part of the United Kingdom.
Gemma Doyle (West Dunbartonshire) (Lab/Co-op)
12. Does the Secretary of State agree that all the currency options that have been put forward for an independent Scotland by the nationalists would actually involve constraints on decision making on fiscal policy?
Mr Carmichael
Every option that is put forward by the Scottish nationalists is inferior to what we currently have as part of the United Kingdom. That is the unpalatable truth that they do not want to hear, but from which there is no escaping. The people of Scotland know that truth.
Mr Alan Reid (Argyll and Bute) (LD)
The success of the Government’s economic policy is proven by the fact that the number of people claiming unemployment benefit in my constituency reduced by 419 in the past year. Does my right hon. Friend agree that the best way to keep this sustained economic growth is to stay within the UK and with the common currency that we have at the moment?
Mr Carmichael
Indeed. My hon. Friend gives me an opportunity to remind the House that the United Kingdom has the fastest growing economy in the G7, and that Scotland is the second wealthiest part of that economy.
Mr Michael McCann (East Kilbride, Strathaven and Lesmahagow) (Lab)
10. The people of Scotland want facts, so will the Secretary of State tell us on what date, if Scotland chooses to separate, will it either have to begin printing its own money or, failing that, start using the pound as a foreign currency?
Mr Carmichael
The hon. Gentleman invites me to look into the future and make a prediction, which is never an easy prospect—it is an unwise prospect for anyone in politics. The truth of the matter is that all these things are uncertain, and they bring enormous risks in areas where we do very well as a result of being part of the United Kingdom.
Sir Menzies Campbell (North East Fife) (LD)
To echo the hon. Member for Moray (Angus Robertson), what could be more demeaning and insulting than to lead the Scottish people to believe that there are no risks in independence, and that a currency union is a foregone conclusion?
Mr Carmichael
The only foregone conclusion about a currency union is that it will not happen. It will not happen because that is the advice that has been given by the permanent secretary to the Chancellor of the Exchequer. That advice is not going to change, and the outcome of that advice is not going to change.
Pete Wishart (Perth and North Perthshire) (SNP)
The Chancellor’s sermon on the pound was supposed to bring the Scottish people back into fearful line, but as the opinion polls have shown, the Scottish people will not be discouraged by this; instead, they are emboldened and angered. The Scottish people will no longer be told by Westminster. Will the Secretary of State tell us what has happened to the search for the Minister who told the truth? Have they made any progress, or do they perhaps need our help?
Mr Carmichael
Mr Speaker, I am delighted that you were able to fit the hon. Gentleman in; otherwise, we would all have missed his monthly comedy turn. It is quite remarkable that he chooses to ignore the advice given by the permanent secretary to the Chancellor of the Exchequer, setting out why a currency union would be bad for the rest of the United Kingdom and bad for an independent Scotland. Why does the hon. Gentleman want something that would be bad for Scotland?
Gordon Banks (Ochil and South Perthshire) (Lab)
Last week, 18% of members of Scottish Chambers of Commerce confirmed that they are making plans to move out of Scotland in the event of a yes vote, and 63% believe that an independent currency or the euro would be bad for business. Today we have heard from the British Chambers of Commerce that 85% of their businesses are against independence, and nearly half identified currency concerns as the most important issue for them. What reassurances can the Secretary of State give the House about currency for businesses on both sides of the border?
Mr Carmichael
The only reassurance I can give is that if people in Scotland vote no, they will continue to enjoy the use of the pound and they will continue to have the Bank of England as a lender of last resort. Beyond that, everything is uncertain.
Iain Stewart (Milton Keynes South) (Con)
6. What assessment he has made of the potential effects of Scottish independence on cross-border trade and employment.
The Secretary of State for Scotland (Mr Alistair Carmichael)
Scotland’s place in the United Kingdom means we have a truly single domestic market, with no barriers to trade and employment across the United Kingdom. Independence would fundamentally change that. The resulting “border effect” would disrupt trade and free movement of workers, reducing real incomes by, it is estimated, around £2,000 per Scottish household per year.
Iain Stewart
My constituency is home to a large number of national logistics and distribution companies. Is my right hon. Friend aware of the growing concern in that sector that separation could make some cross-border routes less attractive, as they would become international rather than domestic ones?
Mr Carmichael
Indeed, and I hear the same message from a range of business interests. The financial services industry, for example, says that independence would bring extra costs with different taxation and different regulation. The supermarkets have made it very clear that extra costs would fall to Scottish consumers if Scotland were independent.
Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
According to the House of Commons Library, 200,000 UK jobs depend on trade with the Republic of Ireland—double that of Canada and Norway. Ireland used to be part of the UK, but trade between the two has never been higher. The UK is Ireland’s No. 1 trading partner, and among the recently independent nations of the European Union, foreign direct investment rose by 215% in the first four years of independence. For those realities, what scare stories will the Secretary of State use?
Mr Carmichael
It is not a scare story to point out that the White Paper presents a prospectus and a future where there would be barriers and where the mere existence of a border would be an extra cost. If the hon. Gentleman wants to know the truth of the matter, he need look no further than at the situation that exists between Canada and the United States. The hon. Gentleman might not like it, but that is the truth.
Graeme Morrice (Livingston) (Lab)
What discussions has the Secretary of State had with the Scottish Government regarding the possibility of border controls between an independent Scotland and the rest of the UK, if an independent Scotland had a separate immigration policy?
Mr Carmichael
It is an inescapable fact that if, as the nationalists tell us in the White Paper, Scotland were to have a widely divergent immigration policy, which would be necessary for such of their economic plans as they have been prepared to tell us about, the operation of a common travel area of the sort that currently works well with the Republic of Ireland simply would not operate. You cannot have your cake and eat it on this occasion.
Mrs Anne McGuire (Stirling) (Lab)
Given the First Minister’s threat to blockade Scottish fishing grounds if he does not get his own way on EU membership and given that licences are held across the United Kingdom, what analysis has the Secretary of State done on the impact on employment in the Scottish fishing industry?
Mr Carmichael
The impact on employment would be serious in some of the most economically fragile communities in Scotland in our coastal and island communities. I have to say that the First Minister’s comment about blockading Scottish waters went beyond the ridiculous, but it makes me wonder whether that is why he seems so desperate to cosy up to Vladimir Putin.
Mel Stride (Central Devon) (Con)
Q1. If he will list his official engagements for Wednesday 7 May.
The Prime Minister (Mr David Cameron)
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.
Mel Stride
As the proud father of three daughters, I am sure that the entire House will share my deep concern for the more than 270 Nigerian schoolgirls held captive in that country. Their only so-called crime is that they aspired to receive an education. Will my right hon. Friend set out for the House the steps that the Government are taking to ensure that we help to secure their release as soon as possible?
The Prime Minister
I know that my hon. Friend speaks for the whole House—and, indeed, the whole country. I am the father of two young daughters, and my reaction is exactly the same as my hon. Friend’s and of every father and mother in this land and in the world: this is an act of pure evil, which has united people across the planet to stand with Nigeria to help find these children and return them to their parents.
The Foreign Secretary and the British Government have made repeated offers of help to the Nigerian Government since the girls were seized. I shall be speaking to the Nigerian President this afternoon and will say again that Britain stands ready to provide any assistance, working closely with the US, as immediately as we can. We already have a British military training team in Nigeria, and the Foreign Office has counter-terrorism experts. We should be proud of the role we play in that country where British aid helps to educate 800,000 Nigerian children, including 600,000 girls. We should be clear that this is not just a Nigerian issue: it is a global issue. There are extreme Islamists around the world who are against education, against progress and against equality—and we must fight them and take them on wherever they are.
Edward Miliband (Doncaster North) (Lab)
Let me begin by fully associating myself and the Opposition with the Prime Minister’s remarks on the terrible situation in Nigeria.
On our proposal for three-year tenancies in the private sector, will the Prime Minister tell us when he expects to make the inevitable journey from saying that they represent dangerous Venezuelan-style thinking to saying that they are actually quite a good idea?
The Prime Minister
I have not had the time to study the rent control proposals, but I am sure the right hon. Gentleman will be able to lay them out for the House. Let me be clear about my view. If there is an opportunity to find longer-term tenancy agreements to give greater stability—a proposal made at last year’s Conservative conference—I am sure we can work together. If, however, the proposal is for rent controls that have been tried all over the world, including in Britain, and have been shown to fail, I think it would be a very bad idea.
Edward Miliband
Even by the right hon. Gentleman’s standards, this is a pretty quick U-turn. Last week, the chairman of the Conservative party—I know the right hon. Gentleman does not have a briefing on this, but perhaps he can listen to the question—was saying this was all back to Venezuela and that it is completely wrong, but the Community Secretary has supported these proposals. The question is how are we going to make it happen?
The Prime Minister
Actually, I have got some very good briefing on these proposals—from Labour MPs. Here they are. Let us start with Labour’s Housing Minister. You would think she would support Labour’s policy. She says:
“I do not think it will work in practice”.
The shadow Secretary of State for Communities and Local Government says this:
“We don’t want to return to rent controls because the rental sector is meeting a demand for housing.”
There we are—the authentic voice of Bennism.
Then we come to the Chairman of the Communities and Local Government Committee, a Labour MP, the hon. Member for Sheffield South East (Mr Betts). He said this:
“We concluded that rent control was not feasible.”
So there we have a Labour policy, completely unclear about what it is; but the one thing that is clear is that Labour MPs do not back it.
Edward Miliband
All the right hon. Gentleman shows is that he has nothing—[Interruption.]
Mr Speaker
Order. I know it has to be said every week, but I will very happily say it again. However long it takes—a very simple exercise in democracy; the lesson should be learned—the question will be heard and the answer will be heard. It is incredibly simple.
Edward Miliband
All the right hon. Gentleman shows is that he has no idea about this incredibly important issue facing our country. Let me explain it to him. There are 9 million people renting in this country. Our proposal is that there should be fixed three-year tenancies as the norm for those people with predictable rent changes. Right? That is the proposal. Many people across this country think that for the first time this is a party addressing the issue they face, so will he explain what is wrong with going from one-year tenancies with unpredictable rent rises to three-year tenancies with predictable rents? Why has the Conservative party given up on millions of people who are Generation Rent.
The Prime Minister
We want to build more houses so we have a better rental sector with more affordable rents. But as I said in my very first answer, if this is about finding new tenancies that give long-term security on a voluntary basis, yes. If it is about mandating rent controls from the centre and destroying the housing market, no. The problem I have with so many of the right hon. Gentleman’s policies is that they all come from the same place—
The Prime Minister
Thank you very much. Len—they come from the Unite union. Unite said, “Renationalise the railways.” The right hon. Gentleman wants to renationalise the railways. Unite says, “Let’s have old-style rent controls.” He wants old-style rent controls. The problem with rent controls is their policies are for rent, their candidates are for rent and their leader is for rent. That is the problem.
Nigel Adams (Selby and Ainsty) (Con)
The Prime Minister will be as encouraged as I am that unemployment in my constituency is down by almost a third since the last election. However, the future for almost 1,000 workers related to Eggborough power station in my constituency is less certain. Will he meet me to ensure that we have a future for this very important asset in my constituency?
The Prime Minister
I am very happy to meet my hon. Friend to discuss this. What he says about the fall in unemployment, which we are now seeing right across our country, is welcome. In fact, employment is growing fastest not in the south-east but in Wales, which shows that the recovery is increasingly more broadly based. I know about the problems at Eggborough power station, and the demand there for further action, as has been agreed at Drax. I am very happy to discuss that with him and see what can be done.
Mr Andy Slaughter (Hammersmith) (Lab)
Q2. I have two world-class hospitals in my constituency. The Secretary of State for Health has decided that Hammersmith will lose its A and E this year and Charing Cross will be demolished, losing all consultant emergency services, including A and E, and the country’s best stroke unit. Will the Prime Minister stop his Health Secretary putting my constituents’ lives at risk?
The Prime Minister
What we are doing in north-west London is ensuring that the NHS gets more money. It will be getting £2.4 billion this year—£74 million more than the year before. Let us remember that his own party’s policy was to cut the NHS, as is happening now in Wales. The changes that are being made in north-west London are backed by clinicians and local people. We want to see our NHS improve, as it is under this Government.
Sir Tony Baldry (Banbury) (Con)
Does my right hon. Friend agree that the policies of the UK Independence party are based on fear—fear of the world and fear of foreigners? As a great trading nation, we should embrace the world. If anyone comes to my constituency and goes to the hospital, the nursing homes, the farms or the building sites, they will see the great contribution that is being made to our communities and to the growth of our economy by fellow EU citizens.
The Prime Minister
My right hon. Friend is absolutely right that Britain has benefited from being an economy that is open to investment and open to people coming who want to contribute and work hard here. I agree with what he says about UKIP: so much of its view seems to be that we do not have a bright future in this country. I absolutely believe that we do. If we get our deficit down and our economy growing and we invest in apprenticeships, we will show that we can be one of the success stories of the 21st century. We are making progress and that is the way to challenge its world view.
Edward Miliband
There is deep concern in the British business and scientific communities about the proposed takeover of AstraZeneca by Pfizer. The deal would have an impact for decades to come on British jobs, British investment, British exports and British science. The Business Secretary said yesterday that he is “not ruling out intervention”. What type of intervention is under consideration by Government?
The Prime Minister
I absolutely agree with what the Business Secretary said yesterday, but let me be clear that the most important intervention we can make is to back British jobs, British science, British research and development, British medicines and British technology. That is why I asked the Cabinet Secretary and my Ministers to engage with both companies right from the start of this process, and I make no apology for that, because we know what happens when you do not engage. If you stand back and just say you are opposed to everything, you get abject surrender and no guarantees for Britain. We are fighting for British science, and it is a pity that the right hon. Gentleman is trying to play politics rather than backing the national interest.
Edward Miliband
It is good to hear that the right hon. Gentleman agrees with the Business Secretary. The Business Secretary said this:
“One of the Government’s options would be to consider using our public interest test powers.”—[Official Report, 6 May 2014; Vol. 580, c. 23.]
There needs to be a proper assessment of this bid, and yesterday the Business Secretary said that he was open to doing that. It could be done straight away, through this House, and we on the Labour Benches would support making that happen. Will the Prime Minister agree to do it?
The Prime Minister
The assessment that I want is from the Business Department on this deal or indeed, because there is not now an actual offer on the table, any subsequent offer. I will judge all these things on whether they expand British jobs, British investment and British science. Let me just make this point, because I worry that it may be lost in this debate. We all know that the right hon. Gentleman thinks he is extremely clever—we all know that—but he may have missed this point. Britain benefits massively from being open to investment. Nissan is now producing more cars than the whole of Italy. Jaguar Land Rover, under Indian ownership, has created 9,000 jobs in the west midlands since I became Prime Minister. Vodafone and indeed AstraZeneca have benefited from that backing of an open country to go out and build and buy businesses around the world. There is more inward investment in Britain today than the rest of the EU combined. Let us not put that at risk.
Edward Miliband
The right hon. Gentleman does not understand. This is simply about something very straightforward—having an independent assessment of this bid and whether it is in the national interest. I will ask him the question again as it matters to people right across this country. Is he ruling out, or ruling in, using the public interest test on this takeover? We could make it happen. His Business Secretary could make it happen, and we would support it. If he does not take action now, and the bid goes through without a proper assessment, everyone will know that he was cheerleading for this bid, not championing British science and British industry.
The Prime Minister
I think it is deeply sad that the Leader of the Opposition makes accusations about cheerleading when the Government were getting stuck in to help British science, British investment and British jobs. Does it not tell us everything that, given the choice of doing the right thing for the national interest and working with the Government or making short-term political points, that is what he chooses to do? We might ask why the public interest test was changed in the first place. It happened when they were sitting in the Treasury. Yes, they wrote the rules, they sold the gold and they saw manufacturing in our country decline by one half. We will never take lectures from the people who wrecked our economy.
Dr Julian Lewis (New Forest East) (Con)
Will the Prime Minister confirm that under his leadership this country will never spend less than the NATO recommended minimum of 2% of GDP on defence?
The Prime Minister
We are spending in excess of 2% and we are one of the only countries in Europe to do that. The Greeks, I believe, are spending more than 2% but, if I can put it this way, not all on things that are useful for all of NATO. We should continue to make sure we fulfil all our commitments on defence spending.
Joan Walley (Stoke-on-Trent North) (Lab)
Q3. Will the Prime Minister urgently meet again with me and fellow MPs to find a way forward on consultant-led maternity services to be run by the university hospital in Stoke-on-Trent?
The Prime Minister
The hon. Lady has asked me this question in the past. I was keen to ensure that despite all the difficulties at the Mid-Staffordshire hospital there was an opportunity to see whether it might be possible for the long term to have consultant-led maternity services. People who live in our major towns, such as Stafford, want to be able to have their babies locally. It is vital that we do that and I am regularly updated by my hon. Friend the Member for Stafford (Jeremy Lefroy). I would be happy to meet him and a delegation of Staffordshire MPs if it is necessary to talk further about this point.
Margot James (Stourbridge) (Con)
Q4. Last week, Boston Consulting Group published research that found that Britain is the No. 1 competitive manufacturing country in the whole of western Europe and number four globally behind China, the United States and South Korea. Does my right hon. Friend agree that that is just the sort of company we should be keeping and further evidence that our strategy to rebalance the UK economy towards manufacturing and the west midlands and other regions is working?
The Prime Minister
I am grateful to my hon. Friend for what she says, because for the first time in almost a decade all three main sectors of the economy—manufacturing, services and construction—have grown by at least 3% over the past year. That is further evidence that the economic plan is working. Manufacturing is important in itself and it is also important because so much of it is tradeable. We want to see Britain export more, make more and invest more. The moves made by my right hon. Friend the Chancellor in the Budget in terms of investment allowances and backing UK Trade & Investment are dedicated to that angle. As I said earlier, we must also remain an open economy, which will encourage people to invest in our manufacturing base.
Mr Nigel Dodds (Belfast North) (DUP)
Later this week, the opening stages of the Giro d’Italia will take place in Northern Ireland. The Tour de France is also coming to Yorkshire. Such world-class sporting events allow us to showcase our region, boost tourism and grow the local economy. Does the Prime Minister agree that as we seek to build a more prosperous and better future for all our people in Northern Ireland it is vital that the suffering and hurt of the victims is never forgotten and that whether it happened one year ago, 10 years ago or 42 years ago, justice must be pursued and the police must be allowed to follow the evidence wherever it may lead?
The Prime Minister
First, I agree with the right hon. Gentleman about the importance of these great sporting events—both the one he mentioned in Northern Ireland and, of course, the Tour de France, which will be starting in Leeds. That will be a great moment for Yorkshire and for the whole United Kingdom. We should do all we can to promote these events, although we should perhaps draw the line at appearing in lycra at either of them.
The right hon. Gentleman raises a very important issue about terrorist victims. We discussed recently the important issue of trying to ensure greater assistance from Libya over Semtex that is still being found in Northern Ireland as we speak today. As for his other remarks, we should be proud of the fact that a free country has an independent judiciary, an independent legal system and an independent police service and that they decide who to arrest, who to question and who to charge. That is how it must remain.
Paul Burstow (Sutton and Cheam) (LD)
Q5. Dementia is one of the biggest challenges facing our country. Will the Prime Minister join me in congratulating the Alzheimer’s Society and Public Health England on launching a major new campaign through Dementia Friends to raise awareness and to challenge stigma? Given that 50,000 people quit their jobs to care for people with dementia, will he ensure that there is a new dementia strategy at the end of this year—the current one ends this year—so that we can ensure that people with dementia receive the support they need?
The Prime Minister
I pay tribute to my right hon. Friend for raising this issue. We have turned the zero on No. 10 into the dementia flower today to help to boost the importance of raising awareness of this issue and of encouraging more people to train as Dementia Friends. I will look at what he says about the strategy. As he knows, it is about investing in research and science, where we have doubled the budget for dementia. It is about dementia-friendly communities and also making sure that our hospitals and care homes treat people with dementia better. We will carry forward all those, and I will perhaps write to him about the update to the strategy.
Ann Clwyd (Cynon Valley) (Lab)
Some 100,000 people are already dead in Syria and others are dying while we are here today. They need help desperately. We have talked about humanitarian help, but we have not crossed borders. What on earth are we doing about it?
The Prime Minister
The right hon. Lady is right to raise this. The answer to what are we doing about it is that Britain is the second largest bilateral aid donor in terms of humanitarian aid going into Syria, so we are helping to feed, clothe and house people in Turkey, in Lebanon, in Jordan and elsewhere. She raises the important point about getting aid into Syria. More is being done on that, but it is extremely difficult because of the security situation. We will continue to do what we can.
Andrew Griffiths (Burton) (Con)
Q6. As we mark the centenary of the first world war, it is a national disgrace that the graves of Victoria Cross winners lie crumbling and derelict. As a patron of the Victoria Cross Trust, may I congratulate the Prime Minister and the Secretary of State for Communities and Local Government on pledging £100,000 to help to restore some of those graves, and The Sun on highlighting this campaign? As the Government have pledged to match-fund every penny raised by the Victoria Cross Trust, will the Prime Minister join me in urging people to go online, to donate and to ensure that we have fitting memorials for the bravest of the brave.
The Prime Minister
I certainly join my hon. Friend, who is a patron of the Victoria Cross Trust, for the hard work that is being done. The Sun did a good job in highlighting the importance of this issue. As my hon. Friend mentioned, my right hon. Friend the Secretary of State for Communities and Local Government has announced £100,000 of funding for the Victoria Cross Trust. This should go to restoring the graves of Victoria Cross recipients.
We also have a programme for letting local authorities put down paving stones for people who won Victoria Crosses in their area, and we are looking at many other ways to commemorate this absolutely vital anniversary. The most important thing we are doing is the huge multimillion pound investment going to the Imperial War museum, which is opening this summer and to which I take my children. It brings the first world war to life in an extraordinary way, and that is at the heart of our important commemorations.
Mrs Emma Lewell-Buck (South Shields) (Lab)
Q15. My constituent Darren Lugg’s disability means that he needs a specially adapted bed. He therefore cannot share a room with his wife, but still they are hit by the bedroom tax. Can the Prime Minister explain why this Government are punishing him for his disability?
The Prime Minister
As the hon. Lady knows, we have discretionary housing payments for exactly this sort of case, and the money has been topped up, so there is no reason for people to be disadvantaged in the way she suggests.
David Rutley (Macclesfield) (Con)
Q7. AstraZeneca is Macclesfield’s largest employer with 2,000 employees, so I share constituents’ concerns about Pfizer’s proposed bid. I welcome the steps taken by the Government to secure initial commitments from the company if it succeeds. Can the Prime Minister tell the House what further steps are being taken to strengthen those commitments and to safeguard highly skilled manufacturing jobs in Macclesfield?
The Prime Minister
I am grateful for my hon. Friend’s remarks. There are 2,000 people employed by AstraZeneca in his constituency, and he is quite right to speak up for them. Our entire approach is based on trying to secure the best possible deal in terms of jobs, investment and science, and that is why I believe it was absolutely right to ask the Cabinet Secretary to engage with Pfizer, just as we are engaging with AstraZeneca. I find it extraordinary that we have been criticised for this. Of course, there is no offer on the table, but the commitments that have been made so far are encouraging in terms of completing the Cambridge campus and making sure that 20% of the combined companies’ total research and development work force is in the UK going forward—and they specifically mention substantial commercial manufacturing facilities in Macclesfield. The company also goes on to say that because of the patent box that we have introduced, it would look at manufacturing more in the UK. But let me absolutely clear: I am not satisfied; I want more, but the way to get more is to engage, not to stand up and play party politics.
Mr Kevan Jones (North Durham) (Lab)
On a number of occasions the Prime Minister has raised the important issue of awareness of mental health, and I thank him for that, but can he explain why, since 2011, there has been a 30% drop in the number of mental health beds in the NHS, and is it really right that mental health patients are having to travel up to 200 miles to access a bed?
The Prime Minister
What matters in our NHS is the quality of provision and parity of esteem between physical health and mental health. This Government have not solved every problem, but we have put proper parity of esteem into the NHS constitution and the NHS mandate. We have also put in proper targets for some of the talking therapies that are absolutely vital in mental health. Measuring the output of our NHS purely by the number of beds is not a sensible approach.
Iain Stewart (Milton Keynes South) (Con)
Q8. The Government are making a substantial investment in renewing and expanding the nation’s infrastructure. There is, however, a real need to get more young people into engineering so that we will have the long-term skills base for these projects. Will my right hon. Friend assure me that this Government will do all they can to inspire the next generation of engineers?
The Prime Minister
I absolutely back what my hon. Friend says. I know he has been campaigning very hard to get the HS2 academy to go to Milton Keynes, because there is a vital bit of skills work that needs to be done. [Interruption.] I am sure there will be a lot of competition. The key thing about these investments, whether it is Crossrail, the Olympics or HS2, is to plan in advance for the skills that we are going to need so that we can fill the jobs with British people leaving school and college wanting to take on those skills. Today the Chancellor and the Minister for Schools have launched the “Your Life, Your Choice” campaign, which is all about encouraging young people to get into STEM subjects—science, technology, engineering and maths—and to stay in STEM subjects, because there is a massive fall-off from GCSE to A-level, particularly in physics among young women, and we need to encourage them to go on studying.
Hazel Blears (Salford and Eccles) (Lab)
I am delighted to see that the Prime Minister is wearing his Dementia Friends badge today. He will congratulate the Alzheimer’s Society on its commitment to get 1 million dementia friends over the next year, but will he also today commit personally to putting an end to the scandal of 15-minute visits, low wages and zero-hours contracts for the dedicated home carers who look after people with dementia in our country?
The Prime Minister
First, let me praise the right hon. Lady for her work on dementia and the amount of work she has done to spread awareness about this. The 15-minute working times is an issue for local councils. My local council has just decided to stop these 15-minute visits because it does not believe people can really get any meaningful work done, but this is a matter for councils. We are the first Government to have a proper review on zero-hours contracts. We are very unhappy about those with exclusivity clauses that do not allow people to work elsewhere. As important as those things are, it is as important to make sure that our care system has got people inside it who are really caring and understanding about the problems of dementia. The right hon. Lady and I have both been through the very short Dementia Friends training course, and I do not know about her, but I think I am ready for a refresher.
Neil Carmichael (Stroud) (Con)
Q9. With 1.3% growth in manufacturing in the last quarter and some strong performances from my local firms such as Renishaw, Dairy Crest, Lister Communications, Lister Shearing and others, largely through innovation, does the Prime Minister agree that one key element of the long-term economic plan is the need further to strengthen our skills base so that those firms can continue to grow, work hard for Britain, and generate exports?
The Prime Minister
My hon. Friend is absolutely right. A key part of the long-term plan is to rebalance our economy away from purely the south-east and also towards manufacturing exports and investment. I know that he has been playing his part by running a festival for manufacturing and engineering in Stroud. This is really important, because one of the things we have to do is inspire a new generation to think of these careers and think of the subjects they should be studying in school and at university to open up these careers for them.
Keith Vaz (Leicester East) (Lab)
Last Thursday, the European Union ban on the import of Indian mangos took effect. As a result, hundreds of businesses in Leicester and throughout the UK will suffer millions of pounds of losses. There was no consultation with this House and no vote by British Ministers. Next week, the Prime Minister will have his first conversation with the new Indian Prime Minister. Will he do his best to reverse this ban so that we can keep our special relationship with India, which his predecessors and he have worked so hard to maintain, and have our delicious mangos once again?
The Prime Minister
I know how much the right hon. Gentleman cares about this issue, so much so that he delivered a tray of mangos to No. 10 Downing street—missing the deadline, I might add, so that they could safely be consumed by the people inside. I am very grateful for that.
This is a very serious issue. The European Commission has to consider it on the basis of the science and the evidence. There are concerns about cross-contamination of British crops and interests, so we have to make sure that that is got right. I understand how strongly the right hon. Gentleman and the Indian community in this country feel. Indeed, I look forward to discussing the issue with the new Indian Prime Minister.
Chris White (Warwick and Leamington) (Con)
Q10. Will the Prime Minister join me in congratulating Vitsoe, the world-class furniture manufacturer, on its decision to locate its manufacturing facility in Leamington and on the jobs that will create? I am proud the decision was based in part on our community’s rich industrial heritage. Will the Prime Minister also pay tribute to local businesses that have created jobs and reduced the number of jobseeker’s allowance claimants in Warwick and Leamington by a remarkable 54% since May 2010?
The Prime Minister
I congratulate my hon. Friend on the decline in unemployment in his constituency, which is incredibly marked at 54%. I note what he says about furniture factories, because those are the sorts of businesses that were going offshore. What we are seeing in our country is a slow trend—but I want to encourage it—of reshoring and getting businesses to come back to, and invest and expand in, Britain. We must do everything we can to encourage that by keeping their taxes down, keeping national insurance down, cutting national insurance for young people, training more apprentices and investing in infrastructure. That is what we will do so that there are many more success stories like that mentioned by my hon. Friend.
Nic Dakin (Scunthorpe) (Lab)
Q12. My constituent Lorraine Seath’s son has recently returned from serving our country in Afghanistan. Does the Prime Minister think it is right that she has to pay the bedroom tax to keep a room available for her son to stay in when he is at home?
The Prime Minister
Let me look at this individual case, because we made a specific exemption from the spare room subsidy for people who were serving overseas. If the spare room subsidy exemption does not apply in this case, there is of course the provision of the discretionary housing payment, which is another way of dealing with this, and I would hope that Scunthorpe borough council would take up that offer.
Mr Speaker
I call Mr Simon Burns. [Hon. Members: “More!”] There will indeed be more, which is why we must hear the right hon. Gentleman and then, at my request, others. We are concerned also, I am sure, about others.
Mr Simon Burns (Chelmsford) (Con)
Q11. The Prime Minister will be aware that last week the service sector grew at its fastest level this year, with the ensuing creation of jobs. Does he agree that that demonstrates that we must stick with the long-term economic plan, because it is working? I trust my right hon. Friend has enough time to answer the question in full.
The Prime Minister
My right hon. Friend is absolutely right: we have to stick to the long-term economic plan and deliver it. For my right hon. Friend to be called at 12.33 pm on a Wednesday shows that if you stick at anything, you can win.
Mr Speaker
I have always practised that philosophy myself: however long it takes, we are going to get through them.
Kate Hoey (Vauxhall) (Lab)
The Prime Minister will know that recently it has gone into the public domain that more than 365 people in Northern Ireland were given the royal prerogative of mercy, despite 10 years of files being lost. Will he give a commitment that those names will be made public? After all, if the Queen takes the time to sign 365 names, surely the public and particularly the victims have the right to know.
The Prime Minister
I would say to the hon. Lady, who I know takes a very close interest in these issues in Northern Ireland, that difficult decisions were taken, principally by the previous Government at the time of the various agreements, which involved very difficult choices—hard choices—that had to be made in order to try to build the platform for peace and reconciliation. I am very happy to look at her specific point and see whether there is anything I can do to reassure her in a letter, but I do not want to unpick decisions taken at a difficult time to try to give us the peace that we enjoy today.
Zac Goldsmith (Richmond Park) (Con)
Q13. The chief medical officer warned last month that we are misusing antibiotics to such an extent that we risk returning, in just a matter of years, to a 19th-century environment where routine operations carry a grave risk of death. A couple of days ago, the World Health Organisation issued a similar warning, saying that we are hurtling towards the post-antibiotic age. On that basis, it is surely madness to continue to allow so many antibiotics to be used on our factory farms—about half the total use in this country—when we know that that contributes to resistance.
The Prime Minister
My hon. Friend raises an extremely serious problem, which is global in its nature and could have unbelievably bad consequences in terms of anti-microbial resistance leading to quite minor ailments not being properly treatable. One of the problems is that the way research is done currently by pharmaceutical companies is not necessarily bringing forward new antibiotics in the way that we need or solving this problem. I have met the chief medical officer to discuss this. There are a number of steps that we can take here in the UK and working with other countries, and I hope to say something about it soon.
Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)
Yesterday, the Secretary of State for Business, Innovation and Skills said that he was working with civil servants to ensure that any assurances given by Pfizer during the proposed takeover of AstraZeneca could be made legally binding. Does the Prime Minister back that?
The Prime Minister
As I said, the more we can do to strengthen the assurances we are given, the better. But the only way to get assurances is by engaging and getting stuck in with those companies, which is what we have been doing, and I find it extraordinary that the Labour party chooses to criticise us for that.
Dr Julian Huppert (Cambridge) (LD)
Q14. The Pfizer bid for AstraZeneca is driven by tax advantages. Has the Prime Minister spoken to the US Government about whether they propose any changes to their tax law, and has Pfizer asked for any changes to our tax system, particularly to the patent box?
The Prime Minister
In its letter to me, Pfizer mentions the patent box as a positive reason for wanting to invest in Britain and for examining whether it could increase manufacturing in Britain. Of course, because of the way the patent box works, you only get the low-tax benefit if you make your investments and do research in the UK, and then exploit that research by manufacturing in the UK. I agree with the hon. Gentleman that we should be incredibly hard-headed about this. It is an advantage that Britain is a low-tax country. We used to stand in this House of Commons and bemoan the fact that companies were leaving because of our high taxes. They now want to come here because of our tax system. I agree with the Business Secretary that that is not enough; we want the investment, the jobs and the research that comes with that competitive tax system.