Public Service Pensions

Christopher Pincher Excerpts

Tuesday 20th December 2011 Commons Chamber

[Danny Alexander]

I have to say that that is the most shameful scaremongering about what we are offering that I have heard. What we are offering public service workers are the best pensions available to any work force in the country. Most public service workers will continue to have a very good pension in retirement. People on low and middle incomes will in most cases receive a better pension at their retirement age than they could under the current schemes. I hope that, on reflection, the hon. Gentleman will join us in explaining and selling this deal to the many hard-working public servants in his constituency rather than misrepresenting it.

[Christopher Pincher (Tamworth) (Con)]

Given that Lord Hutton has said that it is “hard to imagine” a better offer than the “generous” one put forward by the Government, has my right hon. Friend received any imaginative proposals from the shadow Chief Secretary about public pension reform or indeed about how she would pay for it?

[Danny Alexander]

Sadly, the answer to that question is that no such proposals whatsoever have been received.

The Economy

Christopher Pincher Excerpts

Tuesday 6th December 2011 Commons Chamber

[Ed Balls]

The numbers for the hon. Gentleman’s constituency show that 8,600 families in his constituency are losing out from the cut in tax credits. [Interruption.] He is normally quite excitable, but he is really getting rattled this afternoon.

What are the facts? “We are all in this together,” yet women are being hit twice as hard as men; there has been a 100,000 rise in child poverty, according to the Treasury’s own figures; there is a four times bigger hit for families and children than for the banks, which have seen their taxes cut this year compared with last year; not 400,000 but 710,000 public sector jobs are set to go; there is £158 billion more in borrowing than was planned a year ago—£6,500 more in borrowing for every household in this country—and there is the cost of rising unemployment. That is the cost of the failure of the Chancellor’s plan. As for the Deputy Prime Minister’s contribution, we have a cobbled-together replacement for the future jobs fund that is judged by the OBR to have no impact at all on employment and zero impact on jobs. I have to say to the Chancellor and to the Chief Secretary that protecting our economy, businesses, jobs and family finances is more important than trying to protect a failing plan and their failing reputations.

[Christopher Pincher (Tamworth) (Con)]

For the benefit of the shadow Chief Secretary, my constituency is Tamworth. [Laughter.] I see that she has found it.

It takes some brass neck for the man who was so responsible for wrapping this country’s economy around a lamp post to stand there now and try to teach this Government how to drive. If he wants to be credible, and if he wants to be trusted about the cuts that he says need to take place, can he explain why he has abandoned the Darling plan and wants to spend £326 billion extra over the next five years?

[Ed Balls]

Abandon the Darling plan? It is the Chancellor who is borrowing £37 billion more than under the Darling plan. That is because of what is happening to jobs, growth and the living standards of families in our country, with 9,500 families in Tamworth hit by the cut in child tax credit announced last week. I will not read the next figure out; I will spare the hon. Gentleman’s blushes.

As we heard in Treasury questions earlier, the IMF was right: growth is necessary for fiscal credibility. The IMF urged the Chancellor to change course if growth undershot current expectations. The Chancellor did not even know the figures at Treasury questions this afternoon, but in October the IMF advised him to change course and to delay the planned consolidation if growth undershot. At that time the IMF was forecasting 1.1% growth this year; it has come in at 0.9%. For next year it was forecasting 1.6% growth; it is now forecast to be 0.7%. If that is not growth clearly undershooting expectations, I do not know what is.

In May the OECD called for the Government to slow the pace of consolidation if the economy undershot. The Chancellor likes to quote the OECD in support of his policies, so let me tell him what its chief economist said only last week. He told the Chancellor to

“contemplate easing up on spending cuts”

if events turned out to be

“a lot bleaker than even the bleak outlook that we have.”

That is not exactly a ringing endorsement of the Chancellor’s plans.

Fuel Prices

Christopher Pincher Excerpts

Tuesday 15th November 2011 Commons Chamber

[Graeme Morrice]

I entirely agree with my hon. Friend. Immediate action needs to be taken to ensure that our hauliers, and our commercial and transport businesses, are supported in this regard.

[Christopher Pincher (Tamworth) (Con)]

Will the hon. Gentleman give way?

[Graeme Morrice]

No, I am going to carry on because I have taken some interventions and I do not have much time. I am coming to the conclusion of my speech. [Interruption.] We hear all the jeers from those on the Government Benches, but we must not forget that in 1993 it was a Conservative Government who introduced the fuel duty escalator. It is a Conservative fuel escalator, despite the protestations from Conservative Members. The families and businesses that have contacted all Members of this House on this issue need and expect action that will bring about a tangible reduction in the price of petrol and diesel, sooner rather than later. I hope that today’s debate will act as a stimulus for real change on this issue in the weeks and months ahead.

--- Later in debate ---

[Tom Blenkinsop]

Yes. We have heard today the very good arguments about the differences between rural and urban areas, but in certain rural communities in my constituency there is less than 30% car ownership, so there are also class and income issues, as well as a diminishing public transport system that is becoming more and more expensive because of Tory cuts and rising fuel prices.

Female part-time workers often visit two or three workplaces. I used to cover, as a community trade union official, Teesside Cast Products, a steelworks in Redcar. I also represented those in OCS, who worked not only as cleaners and canteen staff but elsewhere as carers on a part-time basis. One of the women I knew did a total round trip of approximately 40 miles a day between two or three work sites. Her employers frequently attempted to remove or decrease her company subsidised fuel costs through unilateral variations in terms and conditions. The Government’s attack on her tax credits and their policy of 20% VAT made it almost impossible for her to work on a day-to-day basis. If it were not for the union fighting for her terms and conditions on fuel payments from her employers, she would undoubtedly have become a Department for Work and Pensions statistic and have been downgraded into a burden on the state rather than the hard-working unionised woman I know her to be.

The Office for National Statistics has demonstrated that in 2010 the poorest 20% of households spent 3.5% of their disposable income on petrol and diesel, compared with 1.8% in the case of the richest fifth of the population. Meanwhile, in the same period, Shell’s profits more than doubled to £4.3 billion, Exxon Mobil made £6.5 billion, and BP made £3.2 billion. We must take note that the squeeze caused by the Chancellor increasing VAT from 17.5% to 20% has added 3p to the price of a litre of petrol. Diesel keeps industry, and the vital service sector that it requires, flowing, much like capital and skills. More than this, public services, including Royal Mail, such as it is—it is going to be fractured and regionalised by privatisation—police vehicle response units, ambulances, fire services and councils incur increased costs via the 3% VAT increase.

[Christopher Pincher]

I know that the hon. Gentleman is a decent man, but will he explain why, if he really wants to see fuel price reductions, he fought the general election on a manifesto to support the fuel duty escalator that would have put 5p on a litre of petrol this April and increased the duty every year for the next three years?

[Tom Blenkinsop]

That was not in our manifesto, although the Tories’ manifesto clearly stated that they would not raise VAT.

Budgets in Middlesbrough, Redcar and Cleveland have been most severely cut by this Tory-Liberal Democrat Government, with cuts of up to 10% for those local authorities. Leafy areas in the south-west such as Dorset have had a 1% budget increase, and we are feeling the pain the most. Our area provides the manufacturing-led recovery for this country, but we are not getting the financial benefits from this Government. The 20% VAT rise and its effect on fuel is hurting us.

The public organisations that I have spoken about consequently reduce their contracting of car and van fleet services, which hurts small businesses in communities such as mine. Those small businesses in turn reduce their staff numbers as they are squeezed by the direct increase in fuel prices due to VAT and the indirect negative multiplier effect of public service cuts.

As Opposition Members predicted, killing off public services will not, in and of itself, evacuate space for the private sector to fill. It has simply intensified the pain of already difficult budget cuts. That has happened because of the Chancellor’s economic decisions before the eurozone crisis. The statistics from the Office for National Statistics and the Office for Budget Responsibility show that the cuts were happening before the eurozone crisis, despite the Government’s attempts to use it as a smokescreen for their failed economic policies.

Eurozone Crisis

Christopher Pincher Excerpts

Thursday 3rd November 2011 Commons Chamber

[Mr Hoban]

As I said, British banks are better placed as a consequence of measures taken to strengthen their capital and improve their holdings of high-quality liquidity. We have also agreed lending commitments with Britain’s major banks through Project Merlin, and the Chancellor has said he will announce further measures to improve the availability of credit in the autumn statement.

[Christopher Pincher (Tamworth) (Con)]

Does my hon. Friend agree that we can only support a financial transaction tax if it applies internationally, rather than just to Europe? Does he further agree that because there is no international consensus in favour of such a tax, it will not be introduced?

[Mr Hoban]

We have said we are not against a financial transaction tax in principle, but it does need to be applied globally. The EU’s own impact assessment demonstrates that an EU-only financial transaction tax would destroy jobs and increase unemployment. It is a bad idea at a time when Europe needs jobs and growth.

Public Service Pensions

Christopher Pincher Excerpts

Wednesday 2nd November 2011 Commons Chamber

[Danny Alexander]

I am grateful to my hon. Friend for reminding me of that important point. Public service pensions must reflect not only the careers of people who spend an unbroken working life in the public sector, but the careers of the many people who take time out. By having a career-average basis, especially when each year’s contribution is revalued by earnings, people who take a career break will still get the full value of the contributions they have made in both parts of their career.

[Christopher Pincher (Tamworth) (Con)]

I congratulate the Chief Secretary on listening so carefully and responding so generously to the representations on pensions. The police cannot strike, of course, and Lord Hutton has dealt with them separately, but can the Chief Secretary tell us a little more about the proposals for police pensions?

[Danny Alexander]

Those proposals will be brought forward later. Police pensions are being considered by Tom Winsor in his second report. His recommendations will not be about the police alone, but we need to make sure that police officers get a proper, fair and decent pension for the contribution they make to our society.

Eurozone Crisis

Christopher Pincher Excerpts

Thursday 27th October 2011 Commons Chamber

[Mr Osborne]

The former Chancellor wrote them! What I would say to my hon. Friend is that we did not have the power to veto disbursements from the EFSM, so we had to negotiate our way out of it. That is precisely what the British Prime Minister has done.

[Christopher Pincher (Tamworth) (Con)]

We hear Labour Members suggesting that Britain is somehow isolated from other members at the EU table, but does the Chancellor agree that what they forget is that by refusing to rule out joining the euro and by insisting that more powers be ceded to Brussels, they are isolating themselves from the broad mass of the British people?

[Mr Osborne]

I completely agree with my hon. Friend. It is a remarkable position for the Labour leader to take when he says:

“I don’t think Brussels has too much power.”

What sort of negotiation would it be if he were in charge?

Jobs and Growth

Christopher Pincher Excerpts

Wednesday 12th October 2011 Commons Chamber

[Ed Balls]

Unemployment is rising and growth is flatlining. The Prime Minister said just a few months ago that the only person supporting me was The Guardian leader writer. Since then, what have we seen? The OECD and the International Monetary Fund are saying that the Government should change course. What has happened to The Guardian leader writer? He has become the speech writer to the Prime Minister.

To those who say that these are just the effects of a world economic crisis now hitting Britain—the same people who absurdly claim that the global financial crisis was all the fault of the British Labour Government, but who now want to blame the British growth crisis on the rest of the world—I say yes—

[Christopher Pincher (Tamworth) (Con)]

Will the right hon. Gentleman give way?

[Ed Balls]

In a minute.

Yes, the deepening euro crisis and the weaker US recovery have made things harder for British exporters in the past three months, but one cannot blame the eurozone or the world economy for the collapse of economic recovery here in Britain when, since last autumn, our economy has grown more slowly than that of any EU country except Greece and Portugal, when we have the highest level of inflation of any EU country except Estonia and Latvia, and when, over the past year, we have seen a bigger rise in unemployment than the EU average, when most EU countries have seen unemployment not rising, but falling. I know the Chancellor does not like it, but those are the facts. The Prime Minister said today, “I accept responsibility for everything that happens in our economy”. I hope the Chancellor will do the same today.

[Ed Balls]

The Chancellor’s big boast over the past six months, which we were told regularly, was that between 400,000 and 500,000 more jobs had been created in the British economy, but today’s figures months show that employment has not gone up at all in the past 12 months; it has actually gone down. We were also told that public sector job cuts would be more than outweighed by the rise in private sector jobs, but I am afraid that employment is falling because the private sector has been unable to deliver the recovery we were promised. It has been a complete fantasy.

[Christopher Pincher]

It is nice that the shadow Chancellor acknowledges the Government’s responsibility for the economy, but it would also be nice if he took some responsibility for the damage he did to it when he was in power. A former Chancellor has said that Labour lacks economic credibility. If the right hon. Gentleman cannot even convince a former Chancellor on his own Back Benches, how can he convince the country?

Eurozone

Christopher Pincher Excerpts

Monday 10th October 2011 Commons Chamber

[Mr Osborne]

I certainly can confirm that, and it is down to the hard negotiating effort of the Prime Minister at the European Council where it was agreed to wind down the temporary EU27 fund and that the permanent bail-out fund would not include Britain.

[Christopher Pincher (Tamworth) (Con)]

With instability in the eurozone and fever in the markets, any Government who contemplated changing three of their five Treasury Ministers would be sending a very dangerous signal. Does my right hon. Friend have any advice for any wannabe political leaders when they choose to sack half their Treasury Bench?

[Mr Osborne]

As far as I can tell, they got rid of all the people who wanted the shadow Chancellor to be the leader of the Labour party and the leader has put in place all the people who wanted him to win. That tactic was used by the last two leaders of the Labour party, as well, at the Treasury.

Summer Adjournment

Christopher Pincher Excerpts

Tuesday 19th July 2011 Commons Chamber

[Christopher Pincher (Tamworth) (Con)]

Before the House rises for the summer recess, there are a number of points that I would like to raise on behalf of my constituents with those on the Treasury Bench, none of which—the House may be pleased to learn—relates to News International.

Many of my constituents write to raise concerns about the Child Support Agency and its manifold failings. It is clear that the CSA is in need of reform, as is the Children and Family Court Advisory and Support Service, or CAFCASS, the dispute resolution mechanism. Parents in Tamworth tell me that communications from CAFCASS are often vague, sometimes complex and are almost always sent only in response to parents’ questions and complaints. CAFCASS, in my own experience of dealing with it, seems to be reactive and unhelpful. Yet day in and day out it is dealing with the some of the most upset, angry and worried parents. It seems clear that we need better dispute resolution procedures between parents so that fewer cases go to court and disputes are resolved more quickly. I would be grateful if the relevant Minister would write to me outlining any proposals that they may have for CAFCASS reform.

Additionally in connection with the CSA, my constituent Mr Paul Doxey, a CSA adviser from Tamworth, has raised a number of cases with me in which local parents, paying child support, are unfairly penalised by a quirk in the system and the whim of their variations officer. Parents who own properties and rent them out for income often find that CSA variation officers capitalise the value of those assets when assessing the child support payments they are required to make. The result of that capitalisation, in many cases, is that the parents are required to pay more in support than the rental income they receive from their properties, forcing them to liquidate their assets, which are their main or only form of income. Then, in logic of which Kafka would be proud, the CSA variations officer has to reduce the payment award because the parent’s income has reduced—because of the original capitalisation decision. I would be grateful if a Minister would look into that anomaly with HMRC and the Department for Work and Pensions, and let me know of any action that they propose to remedy the situation.

During the next few weeks, scores of landlords of the Southern Cross care home company will be asked to nominate alternative operators who they wish to operate their properties following the failure of Southern Cross to meet its liabilities. In each case, any new operator will need to satisfy local authorities and regulators of their credentials before the transfer of any homes. Haunton Hall care home in my own constituency is one of those homes. I know that the Minister of State, Department of Health, my hon. Friend the Member for Sutton and Cheam (Paul Burstow) mentioned this earlier, but I would be grateful if he would write to me outlining any actions or guidance that he proposes to ensure that the transition to new landlords is as orderly and as transparent as possible.

As the fickle finger of time is against me, I shall conclude by reporting to the House that during the recess the magnificent Staffordshire hoard, the cache of beautiful carved gold objects that were buried for more than 1,000 years at Hammerwich on the border of the Tamworth and Lichfield constituencies, will be on show at Lichfield cathedral between 30 July and 21 August, and then at Tamworth castle between 27 August and 18 September. I encourage you, Mr Speaker, all Members and certainly all Ministers to pencil those dates into their diaries so that they can see the haul for themselves, and local trades people in Tamworth can see the colour of their wallets. They can even visit Drayton manor park on the way. It is great for the kids. I assure you, Mr Speaker, that the experience will be, as the young people say, golden.

Finance Bill

Christopher Pincher Excerpts

Tuesday 28th June 2011 Commons Chamber

[Jonathan Edwards]

The hon. Gentleman makes an interesting point and I hope that the shadow Minister will be able to address it much better than I could.

Debt charities such as Citizens Advice report that the amount of debt problems dealt with by the service continues to increase, as the human cost of the recession feeds into the system. There is a long-term economic case for addressing this unsustainable situation by reducing the personal debt caused by consumption in the economy. My preference, however, would be to change the banking code and make it more difficult for lenders to seduce consumers into debts that they cannot service, rather than directly to reduce the purchasing powers of individuals via the use of VAT. I note that new clause 11 has been selected for debate and it covers associated matters.

The major issue faced by the economy is a lack of demand. Personal household debt, built up during the last decade, will be a severe economic headwind facing the UK economy for the foreseeable future. The increase in VAT exacerbates the situation, as we can see today from the revised growth figures for the first three months of 2011, which show that consumer spending is falling at its fastest rate since the second quarter of 2009, a decline of 0.6%. Real household disposable income is 2.7% lower than it was last year, the biggest annual fall since 1977.

Growth in consumer spending will be key if the UK Government are to meet the economic growth forecasts they have set in order to achieve their fiscal consolidation targets. The January VAT increase will stymie the consumer-led growth on which the Government depend.

In the past, my party has argued against VAT being used as an economic stimulus, which was the aim of the previous Labour Government when they cut VAT by 2.5% in 2008-09. In our view, there were more effective ways of stimulating the economy, not least investing in capital infrastructure and putting proper money in people’s pockets and in their pay packets rather than just hoping that they would spend the small change from VAT. With the increase in standard VAT from 17.5% to 20% and the stagnating economic recovery from the recession, the circumstances have changed. This is no longer about merely keeping the tills ringing, but about keeping families in their homes.

[Christopher Pincher (Tamworth) (Con)]

I have listened carefully and with interest to the hon. Gentleman’s new clause. Can he tell the House when he informed the shadow Cabinet that he was going to table this clause and whether he has had any advice on it from the shadow Chancellor?

[Jonathan Edwards]

The hon. Gentleman will be aware that I am in a different party from those on the shadow Front Bench and we do not normally negotiate on the clauses we table. I can only assume that my staff are more effective.

Richard Banks, the chief executive of UK Asset Resolution, said that the UK economy faced a tsunami of repossessions once interest rates rise. Increases will come sooner rather than later, partly as a result of the VAT increase. The increase in inflation has come about for a variety of international reasons, including the slow devaluation of the pound and increases in basic food and oil prices, but we have a 2.1% increase in prices across the board and I am sure that many businesses have racked up their prices by greater amounts. The increase in VAT is adding to the inflationary pressures on the economy and it therefore seems strange that the Treasury is using a fiscal measure that is playing its part in increasing inflation and will inevitably at some stage lead to a tightening of monetary policy, creating a further major headwind for the economy. It is the economic equivalent of shooting oneself in the foot.

--- Later in debate ---

[Mr Hanson]

The hon. Gentleman cannot get away from the fact that he has imposed a VAT rise on businesses, families and hard-working people in Vale of Glamorgan and elsewhere in the UK, and he could have avoided that tax in different ways. On the same evening that the Conservative party has proposed tax relief on support for private medical insurance—[Interruption.] Well, I may be mistaken, but I believe that the hon. Members for Christchurch (Mr Chope) and for North East Hertfordshire (Oliver Heald) are Conservative Members of Parliament. The hon. Member for Vale of Glamorgan (Alun Cairns) has imposed a VAT rise on his constituents that is unfair, damaging business and will damage the UK economy.

[Christopher Pincher]

We all feel very sorry for the right hon. Gentleman, sitting there having to speak to new clause 10. Last week he proposed cutting VAT, but this week he simply wants to assess it. What will his policy be next week?

[Mr Hanson]

The policy is exactly the same week in, week out. We have opposed the VAT increase and the hon. Gentleman has voted for it. Last week we supported a temporary cut to help the economy and he opposed it. We are calling for a review of the impact of VAT on businesses and families, and tonight he will oppose it. This is an important debate and we have an opportunity tonight to assess the impact of VAT and look at the issues that affect constituents.

--- Later in debate ---

[Mr Hanson]

I will try again, slowly. The new clause calls for a permanent cut in VAT to 17.5%. It does not do what my right hon. Friend the Member for Morley and Outwood wishes to do—what we voted on last Tuesday—which is to implement a temporary cut in VAT until we secure strong growth.

[Christopher Pincher]

Will the right hon. Gentleman give way?

[Mr Hanson]

In a moment. The new clause does not do what we said we would do, which is implement a temporary reduction. We have tried, through new clause 10, to ensure that we have a review of all the issues I have mentioned—of tourism, business, jobs and families—so that we can come to conclusions about sectoral reductions and a temporary reduction to help employment.

--- Later in debate ---

[Mr Hanson]

Unfortunately, we are making legislation, not just research notes, and unfortunately what the hon. Gentleman’s new clause states is not what he believes he said just now.

[Christopher Pincher]

The right hon. Gentleman says that new clause 10 will make the VAT cut permanent. Is he saying, therefore, that there will never be another Budget before this House? Not only does he seem to have no policy, he does not understand parliamentary procedure.

[Mr Hanson]

With due respect to the hon. Gentleman, you and I, Mr Deputy Speaker, have been here 19 years and three months. I have been here long enough to understand a few matters of parliamentary procedure. The hon. Gentleman needs to go back to Tamworth and explain to his constituents why, by increasing VAT, he is adding £450 to people’s annual VAT bill; why he is hitting retail sales and retail shops in his constituency; why he is impacting on businesses in his constituency; and why the VAT increase in his constituency will put up the cost of the health service, education, housing and jobs. He needs to reflect on those issues as part of this debate.

In conclusion, we have today an opportunity to vote for new clause 10, which would give us a chance to consider the impact of VAT, to come to conclusions on the points I have made today and to ensure that we can properly assess the best way to implement our VAT reduction so that it helps create jobs, build growth and not stifle our economy. This Conservative-Liberal Democrat Government have not only broken their promises on VAT to the electorate, but put at risk growth, jobs and family living standards. Most abominably of all, however, with this rise they have hit the poorest hardest. We have consistently opposed the rise to 20%, and we want it reviewed. We ask hon. Members to vote for new clause 10 tonight, and I look forward to my right hon. and hon. Friends joining me in the Lobby at the end of the debate.