The Economy and Living Standards

Baroness Primarolo Excerpts

Thursday 12th June 2014 Commons Chamber

[Mr Ellwood]

On a point of order, Madam Deputy Speaker. [Interruption.]

[Madam Deputy Speaker (Dawn Primarolo)]

I call Mr Ellwood on a point of order—in quick order as well.

[Mr Ellwood]

Absolutely, Madam Deputy Speaker. I am glad of that vote of approval. I am just asking for clarification and giving the shadow Chancellor an opportunity to correct himself. He, I think inadvertently, misled the House by suggesting that Bournemouth’s youth unemployment has increased; according to figures from the Library, it has reduced by 40% over the past year.

[Madam Deputy Speaker]

Mr Ellwood, that is not a point of order; that is continuing the debate. You have had three chances at it: three strikes and you’re out—no more.

[Ed Balls]

It is also completely pathetic. In the hon. Gentleman’s constituency, the number of young people aged between 18 and 24 claiming JSA who have been out of work for more than 12 months has gone up by 700%. As I said a moment ago, you either bury your head in the sand, or you face up to these big issues. We are facing up to them, but Government Members are incapable of doing so.

[Ian Austin (Dudley North) (Lab)]

The shadow Chancellor is setting out a really important argument about the recent election results, the widespread disenchantment that clearly exists in Britain at the moment, and the effects of globalisation and technological change on the economy. Is it not absolutely extraordinary that while he is doing so, he is being subjected to these utterly juvenile interventions? Does he not find it extraordinary that all Government Members can do is to read out handouts from the Whips, and the idiot from Bournemouth cannot even get that right? [Interruption.]

[Madam Deputy Speaker]

Order.

[Mr Ellwood]

rose—

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[Madam Deputy Speaker]

Sit down, Mr Ellwood. [Laughter.] This is a serious debate. Mr Ellwood, I am sure that you have very broad shoulders, and you will give your all when you get your turn to speak, perhaps in interventions on the Chancellor.

[Ed Balls]

I am trying to respond to serious issues. The reality is that, yes, after three years of flatlining, our economy is finally growing again, but net lending to small business is still falling, youth unemployment is still at record highs, wages are not keeping pace with prices and people are worse off. What I want to say is that unless we face up to that reality, we will not make progress. [Interruption.]

[Madam Deputy Speaker]

Order. Mr Ellwood, I can hear what you are saying. Actually, I agree that the way in which the hon. Member for Dudley North (Ian Austin) referred to you was uncalled for. You are an honourable Member of this House, and I am sure that Mr Austin wants to make it clear that that is his view.

[Ian Austin]

I did not mean—[Laughter.] Madam Deputy Speaker, the last thing I would want to do is upset you, but I have to say that the hon. Gentleman’s intervention—[Laughter.]

[Hon. Members]

Apologise!

[Madam Deputy Speaker]

Order. I expect Members to behave according to the rules of the Chamber, of which they are fully aware. Mr Austin, the word you are looking for is “sorry”. Stand up, please, and say sorry.

[Ian Austin]

Madam Deputy Speaker, I would like to apologise to you. [Interruption.]

[Madam Deputy Speaker]

Order. For goodness’ sake, everybody calm down. That is good enough: “sorry” is on the record in relation to the hon. Member for Bournemouth East (Mr Ellwood). That is the end of it.

[Mr Jamie Reed (Copeland) (Lab)]

On a point of order, Madam Deputy Speaker.

[Madam Deputy Speaker]

No. I am not going to take a point of order; I am going to listen to what Mr Balls has to say. This is getting ridiculous.

[Ed Balls]

As I said, the first wrongheaded thing to do is to bury one’s head in the sand and not to face up to the reality. We can debate the Chancellor’s record. In 2010, he said that he would balance the Budget in 2015, but the deficit will be £75 million. He said that he would make people better off, but the Institute for Fiscal Studies has confirmed that people will be worse off in 2015 than they were in 2010. He said that we would all be in this together, but he has imposed the bedroom tax on the most vulnerable, seen record numbers go to food banks and cut the top rate of income tax for those earning more than £150,000.

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[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

On a point of order, Madam Deputy Speaker. Mr Speaker was very clear in his guidance earlier that we should speak to the amendment. I am struggling to find in the amendment any mention of a European referendum.

[Madam Deputy Speaker (Dawn Primarolo)]

Fortunately, that is a matter for me, and not the hon. Lady. The clear argument that is being advanced is about the importance of that matter to the economy. As long as the right hon. Gentleman stays on that point, he is in order.

[Ed Balls]

The argument that I am making is that if we as a House—those of us on the left and on the right—are to face up to the challenge of delivering more and better jobs for working people and if we are to see off the pressures for isolation and withdrawal, we cannot take the wrong-headed approach either of denying that there is a problem or of appeasing those who would try to walk away. We need a Queen’s Speech that rises to that challenge. My point is that, in putting all its energy into Europe and the referendum, the Conservative party has the wrong strategy to deal with the challenge that we face.

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[Ed Balls]

Will the Chancellor like to tell the House how many people went into negative equity after 2007, and how that compares with the number of people—the tens of thousands—who were put into negative equity after the Conservative housing crash of 1989? If he is going to make these statements he ought to be able to make them stand up. While we are here, will he tell us—

[Madam Deputy Speaker (Dawn Primarolo)]

No, no, no. Mr Balls, sit down. Not “While we are here.” One point at a time.

[Mr Osborne]

The right hon. Gentleman’s argument seems to be, “My crash was better than your crash.” That is a brilliant argument. I will tell him the answer. He was going to remove a temporary scheme that protects people from mortgage costs when they become unemployed. I extended it year after year after year. I have extended it again in the Budget to make sure that people do not find themselves having their homes repossessed. Can I also tell him that the housing market fell by almost 20%? The price of houses fell and there were people at Northern Rock—[Interruption.] His argument is literally, “I’m sorry we messed it up, but you messed it up in the past as well.” That is an absolutely hopeless argument. I have learned the lesson from the terrible mistake—