(13 years, 8 months ago)
Commons ChamberI remind hon. Members that there is a six-minute time limit on contributions in the debate from now on so that we can try to ensure that everybody gets in.
Order. May I remind hon. Members that I want to begin the winding-up speeches at about 20 minutes to 10? There are 16 Members who still wish to speak in this important debate, although there might be more—I have not seen them all. Hon. Members do not have to use the six minutes, but I am not going to reduce the time limit, because I appreciate that it is difficult to make the strong arguments hon. Members want to make in less time than that.
(13 years, 9 months ago)
Commons ChamberBefore I call the Minister, I inform the House that Mr Speaker has not selected the reasoned amendment tabled in the name of the Opposition.
I look forward to the hon. Gentleman going back to Dover to explain why he is supporting not only a Bill that does not give a national insurance holiday to his constituents, but the VAT rise elsewhere in the Budget proposals—we need to look at that in the round—which will impact on pensioners, the low paid and everybody in his community. This is not a topic for today, but the debate on the national insurance rise was open and honest on our side. During and after the election, the Conservative party argued against the rise, but it is now implementing it. On top of that, it is not meeting the objectives in its manifesto and has increased VAT. I think that a VAT rise is a regressive tax policy that will hit the poorest hardest, but that is the choice that the Conservative party has made.
I want to focus most of my remarks on the second part of the Bill. The decision to introduce a regional employer national insurance holiday is welcome, but it specifically excludes new businesses in Greater London, the south-east and the eastern region. We tabled a reasoned amendment that has not been selected, but which would have declined to give a Second Reading to the Bill because of those exclusions. I sense that the hon. Members for Portsmouth North (Penny Mordaunt), for Meon Valley (George Hollingbery) and for Basildon and Billericay (Mr Baron), who spoke earlier, will have expressed their concerns about how the choices on the national insurance holiday were made. [Interruption.] The Economic Secretary to the Treasury says that we would have increased national insurance contributions across the board.
Order. We cannot have comments shouted across the Floor from a sedentary position. It makes it very difficult for Hansard to record our proceedings, particularly when the comments are then referred to without having been recorded. Will the hon. Lady make her point from the Dispatch Box, so that the right hon. Gentleman can answer it?
My point was that the Labour party would have increased NICs for absolutely everybody.
The point needs to be made that the Minister has explained that a significant extra cost would be involved in making this a national programme. As the Member of Parliament for Watford, an area that faces significant unemployment problems, I would say that it would be very nice to have this programme, but the Minister has explained that the cost involved would be more £660 million. I am pleased to see this principle being used, because I believe that selective regional policy can be used in the future. I hope that the Government’s localisation agenda will mean that holidays and similar tax benefits for rates will be extended to specific areas. But for the moment, because of the mess that the Labour Government left us with—
Order. The hon. Gentleman will resume his seat. Interventions are supposed to be brief.
I suggest that the hon. Gentleman should perhaps make his own speech, rather than intervene on mine.
The FSB makes clear its concern about not only the regional variation, but the fact that the proposals do not deal with existing firms. My right hon. Friend the Member for Delyn (Mr Hanson) also made that point from the Front Bench. The FSB says that
“surveys have found that 57% of small businesses without employees would like to employ in the future, which could create…800,000 new jobs”.
It also points out that many small businesses do not survive for more than two or three years, so by discriminating against existing small businesses that have just been established the proposals are another difficulty for that sector. The FSB claims that, on average, its 213,000 members each employ seven members of staff and that most employ five or fewer. It points out that if they were able to get the support that is being made available only to certain businesses in certain regions, there would be the potential for much greater assistance. Therefore, the essence of the proposals is that if the Government are going down this route, they are doing so in a way that discriminates against certain regions and certain communities in the country, and that discriminates between different businesses.
The essence of the proposal, we are told, is that we are all in this together but, sadly, it is yet another example of where we are not. We are all in it together, but we are not all getting the assistance to deal with the problems that the Government will create when they slash the public sector.
(13 years, 9 months ago)
Commons ChamberWith this it will be convenient to discuss the following:
Amendment 13, page 2, line 10, at end insert ‘with effect from 1st January 2014’.
Amendment 14, page 2, line 10, at end insert—
‘(1A) The provisions in subsections (2) to (5) come into force with effect from 1st January 2014.’.
Amendment 15, page 2, line 36, in clause 4, leave out subsection (2).
Amendment 16, page 2, line 39, leave out ‘The rest of this Act ‘ and insert ‘This Act, apart from section 2’.
Amendment 27, page 2, line 39, leave out ‘The rest of’.
Amendment 40, page 3, line 1, leave out subsection (4).
Amendment 28, page 3, line 1, leave out from beginning to ‘3(1)’ and insert ‘Section’.
Amendment 29, page 3, line 2, leave out ‘extend’ and insert ‘extends’.
Amendment 41, page 3, line 4, leave out subsection (5).
Amendment 31, page 3, line 4, leave out from beginning to ‘3(2)’ in line 5 and insert ‘Section’.
Amendment 32, page 3, line 6, leave out ‘extend’ and insert ‘extends’.
Amendment 39, page 3, line 7, leave out ‘The rest of’.
Amendment 37, in title, line 1, leave out ‘to repeal the Saving Gateway Accounts Act 2009;’.
We are in danger of repeating discussions that we had in Committee, but the Prime Minister has said that opposition is an important constitutional duty, and I intend to fulfil it in the next hour on the question of saving gateway accounts.
Amendment 2 seeks to remove the abolition of those accounts by removing clause 2. As ever, and as I said in relation to the first group of amendments, I am trying to be pragmatic. The Minister will note that amendment 13 seeks merely to delay the abolition of the saving gateway until 1 January 2014 to allow him and his officials a period of reflection in which they can examine whether abolition is required.
The saving gateway, which was originally introduced in the Saving Gateway Accounts Act 2009, is important—[Interruption.]
Order. One conversation in the Chamber is quite enough at any one time, and the conversation we are supposed to be hearing is the shadow Minister addressing the House.
(13 years, 9 months ago)
Commons ChamberI beg to move amendment 5, page 1, line 7, at end insert—
‘(2D) The Treasury shall lay before Parliament details of the timings and planned dates for payments of compensation to which this section applies, no later than three months after commencement of this Act.’.
With this it will be convenient to discuss amendment 8, in page 1, line 7, at end insert—
‘(2A) After determining the total amount of the payments that the Treasury is to authorise under subsection (2) and the persons to whom those payments are to be made, the Treasury must secure—
(a) that each of those persons is paid the full amount due to that person in a single payment, and
(b) that the single payment is made as soon as practicable.’.
Order. There has been a very expansive debate so far, so there will not be a clause stand part debate. If the Minister wants to say anything, I would encourage him to say it now.
You are right, Ms Primarolo, we have had an extensive debate, so I will ensure that I now have my notes to hand for the clause stand part debate. I should clarify the treatment of the payments under the tax and benefits system. They will not be treated as income for tax purposes, and will not be taken into account in the calculation of tax credits, which is a benefit for policyholders. In terms of benefits, they will be treated as capital rather than income, and given the beneficial nature of the treatment of capital in the benefits system, that helps policyholders. We have sought in the design of the scheme, through measures such as the tax and benefits treatment, to maximise the value so that policyholders will receive the full amount.
Will the hon. Gentleman explain the inactivity on the matter while his party was in government, particularly during the demise of the Icelandic banking industry, when his Government bailed out many investors who were affected by that at the drop of a hat?
Order. Before the hon. Member for Nottingham East (Chris Leslie) answers, may I remind the House that this is Third Reading and that it is timed, which means that it will conclude at three minutes past 5? Members who have sat through the debate this afternoon and who wish to speak on Third Reading might not get the opportunity to do so. I shall call Mr Leslie back to the Dispatch Box to respond to the intervention, but perhaps everybody in the Chamber could bear my point in mind.
Indeed, Madam Deputy Speaker. It is certainly incumbent on us all to be brief as far as we can. I have set out the position as I see it. I know that Government Members will disagree, but I do not wish to impugn their intentions. I was simply seeking to point out that they are held to a pledge that not all Members are held to and that they will be judged on that.
We are not minded to oppose the legislation this evening. This is a necessary paving Bill, but we accept that the devil will be in the detail and we await the further scrutiny of the measures that will come subsequently.
(13 years, 9 months ago)
Commons ChamberI must inform the House that Mr Speaker has not selected any of the amendments.
(13 years, 10 months ago)
Commons ChamberOrder. As hon. Members will see, there is a great deal of interest in today’s debate. Some 10 Members have indicated that they wish to speak, and as this is a time-limited debate I will ask each of them to consider how long they will speak for, so as to ensure that every Member who wants to make a contribution can do so before the time elapses.
I acknowledge the hon. Gentleman’s honourable record on this matter, but will he acknowledge that the description that he just gave admirably suits the Quisling-in-chief now occupying the position of Opposition Front-Bench spokesman, who always urged the previous Labour Government on from the Back Benches?
Order. I think the hon. Gentleman’s language—“Quisling-in-chief”—was a little strong, and I am sure that he would like to rephrase his view of that individual, even on an intervention.
Order. I want to inform the House that I intend to give those on the Front Benches time to make a brief response to the debate, and I shall do that at 8.22 pm. There are still a number of Members who wish to speak, so I ask them to do the maths and to help their colleagues out if they can, please.
Order. May I ask Members to leave the Chamber, if that is what they wish to do, quietly and quickly so that the rest of the business of the House can continue?
Delegated Legislation (committees)
Motion made,
That the Town and Country Planning (General Permitted Development) (Amendment) (No. 2) (England) Order 2010 (S.I., 2010, No. 2134) and the Town and Country Planning (Compensation) (No. 3) (England) Regulations 2010 (S.I., 2010, No. 2135), be referred to a Delegated Legislation Committee.—(Stephen Crabb.)
(13 years, 10 months ago)
Commons ChamberI am extremely interested in the fact that you admit that you would have cut the deficit, and I am extremely interested to know how you would do so.
Order. Tempted as I am to answer the questions that are being posed about the deficit, I remind the House that the hon. Gentleman is not the only one in this debate currently blaming the Chair for everything, so I would be grateful if we could return to the convention, ensure that our language is correct and, if possible, keep me out of this argument—for now, anyway.
The whole matter is very much one of degree, not either/or. However, one other interesting difference between the Government and Opposition Front Benchers is that the Government frequently argue that high public spending and a big public sector act as a drain on, and kill off, the private sector. In the city of Edinburgh between 1997 and 2007, however, development and building—not just public sector building, but private sector building—flourished. In fact, the Royal Bank of Scotland built a huge corporate headquarters just outside the city during that period. The argument is that if we have a huge public sector, the private sector will shrink and disappear, and that, therefore, if we do the opposite, the private sector will suddenly rise up. I do not yet see, and doubt whether we will see, any great rise in the private sector. Where are the private residential houses and offices being built by the construction industry in my city? They simply are not there. They were at a time when, according to all the arguments that Government Members have put forward, they should not have been. If the public sector is so bad for the private sector, we should have had huge problems.
At this stage in the passage of a Finance Bill there are opportunities to do several things. We heard an interesting exposition of the importance to the film industry of tax reliefs and credits, so why did the Government decide not to go ahead with an equivalent tax credit for the video games industry? The city of Dundee, which is not far from where I live, suffered for many years after what happened to the old industries. It was a city of jam, jute and journalism, and it struggled for a long time, but the relatively recent expansion of the further and higher education sector in the city and the spin-offs in terms of the research and development have been very impressive. They have brought people back to a city that was losing its population, and they have encouraged young people who were educated there to stay there. Industries such as the video games industry, for which Dundee has become justly famous, have done that, yet for no good reason the coalition Government have stopped something that might have allowed the industry to develop and flourish. The opportunity exists in this legislation for the Government to reintroduce that opportunity, and I hope that they will do so.
I was at a briefing earlier today on the Robin Hood tax, a financial transaction tax that many organisations in this country advocate not only because they feel it right that the banks, which did so much to cause the financial crisis, should contribute, but because it is a way of raising funds to deal with poverty and deprivation here and elsewhere. That proposal could be included in the Bill. It is well worked out, and I hope that, even at this stage, the Government will be prepared to consider amending the legislation in order to include such matters.
(13 years, 11 months ago)
Commons ChamberOrder. I remind hon. Members that Mr Speaker has set a time limit of eight minutes for Back-Bench speakers. There are so many people who want to speak that I ask all hon. Members to help their colleagues wherever possible by speaking for less than eight minutes. We will have to consider progress in the debate later this evening, and whether everyone will get in. I also remind Members who feel that as they might not have a chance to speak they will therefore make an intervention, that the intervention should be brief, not a substitute for the speech that would otherwise have been made. I call Mr Bernard Jenkin.
Mr Jenkin does not wish to speak, even though his name is on the list. In that case, I call Mr Alan Reid.
(14 years, 2 months ago)
Commons ChamberThank you very much for giving way, and I am looking forward to hearing what else you have to say. What you have said so far would, however, have much more credibility if you had not represented a Government who tried a different approach for 13 years, with high-falutin’ goals to reduce poverty to help your constituents, and who failed miserably in that. Is the hon. Gentleman truly saying that in his view there should be no cuts—that the broken economic model should roll on as before and that that is the way to repair the economy—or does he have some idea of where the cuts should have fallen?
Order. Before the hon. Gentleman replies, may I just say to the hon. Lady, first, that interventions are supposed to be brief—I hope that all Members will take note of that? Secondly, on the use of “you”, may I remind the hon. Lady that her comments are not addressed to me in the Chair? Given that we have been back in the Chamber for quite some time now, I think Members need to come back to addressing each other correctly when putting questions.
My apologies, Madam Deputy Speaker, for not welcoming you to the Chair.
My answer to the hon. Lady’s second question is: absolutely not. None of us can resile from the fact that there will need to be not just efficiencies, but cuts and prioritisation of projects and spending, and that will hurt. My fundamental point, which I shall return to in some detail shortly, is about how we do it and when we do it; the timing of it.
I have to say that I could not disagree more with the hon. Lady’s earlier point, and neither could most of the child charities or the Joseph Rowntree Foundation. [Interruption.] Yes, we have had criticism for not going far enough, but I return to the remarks of the hon. Member for Strangford (Jim Shannon) about child tax credits. They can sometimes be complicated. I sometimes have constituents in my office who say, “Can you help me sort this out, because we have letters going back and forth?” I tell the hon. Member for Devizes (Claire Perry) this, however: none of my constituents would do without them because of the material difference they have made to them.
When I send my children to school, I know that if they come home and say they have a trip to go on and it will cost a fiver, a tenner or £20, I can say to them, “Don’t you worry. I’m on an MP’s salary; it’ll be okay.” I also know, however, that there are constituents of every Member in this House who will have to make the choice between putting groceries on the table and putting that money towards things such as school trips. So when the hon. Lady says this makes no difference, I can honestly say to her, “Go and look at the statistics. Go and look at the numbers of those who have been lifted out of absolute poverty under the previous Government.” If she shares this commitment—as I am sure she does—I tell her to put the pressure on the coalition Government to make it clear before the summer what their poverty targets are, and not for two years, but for five years.
Order. I want to be helpful to the Chamber by explaining that when hon. Members make their contributions, they address the Chair. When hon. Members say “you”, they mean the occupant of Chair—and according to parliamentary convention, the Chair should not be blamed for everything. Also, interventions should be brief.
Thank you, Madam Deputy Speaker. All that I would say about the hon. Gentleman’s intervention is that the recession was caused by the collapse of the global economy, and principally by the bankers. If the hon. Gentleman would like to come and have a look at the ex-mining and ex-steelworking areas of my constituency, I could show him how much progress was being made in repairing the damage and how much that repair is now at risk because of the policies pursued by this Government.
I fear the worst for the young of our country. The 1980s saw the creation of a lost generation, and we are still feeling the effects. I believe this coalition will create yet another lost generation. I fear for the poor, the sick, the unemployed, the elderly and the hard-working public sector. Now we are getting to know just what the “big society” is all about. It is about an ideological drive towards a US-style small state; it is about people being left on their own; it is about the poor and the disadvantaged being left to help themselves; it is a return to the days we thought had been left far behind when the previous Tory Government left office. The only surprise is that this time they are being aided and abetted by the Lib Dems. That just goes to show that, as we have always suspected in south Yorkshire, the Lib Dems are yellow Tories at heart.
Increasingly, when I look at the Lib Dems in government, I am reminded of George Orwell’s “Animal Farm”. The pigs, led by Napoleon, campaign for an overthrow of the old politics on the farm. Gradually, however, the pigs morph into the humans they once despised, and their slogan of “Four legs good, two legs bad” changes to “Four legs good, two legs better”. In Sheffield, we are all aware that our Napoleon has started walking on two legs. The Deputy Prime Minister is a Tory in all but name, and we fear the consequences of his betrayal for our economy, both regionally and nationally. He should hang his head in shame.