Cost of Living
Debate between Geraint Davies and Alec Shelbrooke
Geraint Davies
That is a key point.
We are always hearing that everything is all right in the UK and the problems are someone else’s fault. The EU does have problems, but there are emerging opportunities in China, India, Brazil and elsewhere. The Queen’s Speech should have provided a strategic platform for international trade to help us access the newly emergent and massive middle classes who want to take our consumer goods and who form the basis of inward capital investment. But no, we are busy being the one nation, fish and chip shop, Eurosceptic Britain—the nation of shopkeepers that Napoleon described us as. It is frankly pathetic. The Conservatives are not fit to be in government.
Between 1997 and 2008, we saw growth of 40%. Not enough Labour Members stand up and defend that. If our debt to GDP ratio is going from 55% to 85%, how can we sort it out? One way is to cut debt and to stamp on the poor for the recklessness of the bankers, which is what the Tories are doing. The other is to increase GDP so that the ratio goes down. Under Labour, GDP went up by 40% up to 2008. In 2008, my right hon. Friend the Member for Kirkcaldy and Cowdenbeath (Mr Brown) and President Obama put together the fiscal stimulus. The EU’s fiscal stimulus was 2% of GDP. In the United States, it was 5% of GDP. Indeed, the United States put in $2 trillion of quantitative easing, whereas the EU put in nothing. Britain did put in something, but we still have the economics of austerity here and in Europe. In the United States, where the economy was stimulated, growth is projected to be 3% in the next year. In the EU, it is projected to be 1%. Why was nothing done about that in the Queen’s Speech?
We have seen the emergence of massive youth unemployment. In Greece, the rate is more than 60% and in Italy it is 38%. In Greece, people are moving towards the Nazis and extreme communists. In Italy, 25% of people voted for a comedian. I notice that that is the same percentage of people who are voting for UKIP here. The British National party’s support has gone up fourfold from 1% to 4%. The response of the Tories is to run for the hills and emulate UKIP.
Why has support for UKIP gone up? The first reason is that the Prime Minister has given it credibility by saying that he will hold a referendum. People who used to say to me when I knocked on their doors, “You must be joking. We’ve got millions of jobs involved in trade with Europe. It’s the platform into China, India and the United States”, are now thinking, “Hold on. Cameron’s offering us this option, so it must be a credible choice.” That gives oxygen to UKIP.
Alec Shelbrooke
What is the hon. Gentleman’s reaction to the hon. Member for Lewisham West and Penge (Jim Dowd), who said that their party should support a referendum on Europe?
Geraint Davies
Obviously, I disagree with that. I do not agree with a referendum, but if the overwhelming majority of people in Britain want one, I accept that we should have one. I am simply saying that the case for a referendum has been whipped up because of the Conservatives’ fear of UKIP. They have fed it red meat, and it is coming back for more.
It is the same with immigration. Everyone is going, “Oh no, there’s too much immigration. It’s terrible, isn’t it?” However, immigration was part of the reason for our economic growth. We prematurely let in some of the people from Poland who would have been able to come here anyway, and meanwhile Germany is saying that it needs more immigrants to pay for the generation that is growing old. We obviously need to manage immigration properly and carefully, but we should consider that 6% of immigrants are on benefits compared with 16% of indigenous people.
We are providing ammunition for people to blame immigrants, and what was in the Queen’s Speech? Private landlords and health providers will have to find out whether someone is an immigrant and whether they are legal. What will be the easiest test of that? “Are you white or are you black?” It is institutional racism. We are feeding the UKIP voters by saying, “The austerity problems aren’t Tory austerity problems, they’re because of all the immigrants.” Is that helping anyone and creating a united and strong Britain with a one nation future? No, it is creating a weak, divided nation of people who are being crushed by the Tories, and the poorest are blaming the immigrants. It stinks.