Oral Answers to Questions

Debate between Lord Bruce of Bennachie and Justine Greening

Wednesday 18th March 2015 Commons Chamber

[Sir Malcolm Bruce (Gordon) (LD)]

I commend the Secretary of State, her Department and her Ministers for their campaigning work on this issue on behalf of women and girls. May I ask her not to hold back in countries such as Sierra Leone, where secret societies perpetrate female genital mutilation? The girls do not even know what is happening to them and they do not discuss it. Will she work with campaigners in that country to ensure that the matter is addressed?

[Justine Greening]

My right hon. Friend is right to address that point. In spite of the challenges that Sierra Leone faces with Ebola, FGM has, ironically, stopped. This is because it was one of the main ways in which the disease could spread. The key now is to prevent those practices from coming back, and I am already having discussions on that.

Given that my right hon. Friend is leaving the House soon, I should like to take this opportunity to pay tribute to all the work that he has done as Chair of the Select Committee on International Development since 2005. The Committee has published more than 90 reports in that time. On a personal level, I have very much valued his objectivity and constructive working with our Department.

Oral Answers to Questions

Debate between Lord Bruce of Bennachie and Justine Greening

Wednesday 17th December 2014 Commons Chamber

[Justine Greening]

Yes, of course. We will continue to deliver the promises we have made such as getting hospitals open and delivering extra beds. A key announcement I made during my visit over the past few days was to provide more protection for the many children affected by the crisis. Many of them are orphaned or themselves suffering from Ebola and needing to recover. There will be lots more support for them. I can assure the hon. Lady that as we are able to scale up the operation, we will reach more and more patients.

[Sir Malcolm Bruce (Gordon) (LD)]

I would like to thank, through the Secretary of State, the British personnel who are engaged in tackling the outbreak. Following up the question on the WHO, does she acknowledge that it did not respond quickly enough and that its mechanisms are not really fit for purpose? Will she press for a review of the workings of the WHO so that it can be more efficient in future?

Oral Answers to Questions

Debate between Lord Bruce of Bennachie and Justine Greening

Wednesday 5th November 2014 Commons Chamber

[Justine Greening]

As I said, I think we should be proud of the work we are doing, and we are doing a huge amount. Alongside the beds we are providing, we are helping to make sure that burials can take place safely, we are scaling up the training of health care workers—800 a week are being trained by the MOD—and we are rolling out more community care. As the hon. Gentleman says, this care is often being delivered by volunteers from Sierra Leone, who are involved in safe burials, and from our own country, and we should thank them for their generosity of spirit.

[Sir Malcolm Bruce (Gordon) (LD)]

Will the Secretary of State join me in thanking those dedicated workers from Sierra Leone, the UK and across the world who are risking their lives to tackle this? Will she also ensure that the UK Government’s cross-departmental working delivers a long-term legacy to Sierra Leone of a strong health service capable of preventing any such disaster from happening again?

[Justine Greening]

I am pleased that my right hon. Friend has given me the chance to give a very personal thank you to my staff, who have really played a role in leading our efforts on the ground in Africa, pulling together the MOD, Public Health England, and NHS workers—who have done an amazing job—alongside our Foreign Office staff. We have nearly doubled our DFID team in Sierra Leone. Many of them are people who thought they would be doing something entirely different, but are now working round the clock to tackle Ebola. We should be proud of what we are doing. My right hon. Friend is of course right that we should also look to ensure that we can strengthen health care systems in countries such as Sierra Leone, so they are better placed in future to combat these challenges on their own.

Afghanistan

Debate between Lord Bruce of Bennachie and Justine Greening

Wednesday 14th May 2014 Commons Chamber

[Justine Greening]

I thank the right hon. Gentleman for his questions. The first point he raised was how we can make sure we never forget the sacrifice that has been made by our servicemen and women who have served in Afghanistan. I understand that discussions on how we can make sure we commemorate and remember that work are under way in the Ministry of Defence, and I am sure it will have further updates to give the House shortly.

In relation to the work ICAI did on DFID programmes in Afghanistan, I think the first point to make is that it recognises, as we do, that Afghanistan is one of the most difficult places in the world to deliver aid. However, it said that we worked effectively with our partners, and, indeed, that

“our livelihoods programmes are delivering significant improvements to thousands of people”,

although the right hon. Gentleman raised some of the serious challenges we still face in making sure that the gains and advances we have made continue. It is probably worth pointing out that some of the training on vocational education has helped about 70,000 young people get into work in Afghanistan. The right hon. Gentleman is right that the livelihoods issue is one of the core elements of the programme going forward. We will work on the ICAI recommendations in the report and any that the IDC has made recently.

On the terrible mudslide and flooding around Badakhshan, the UN is working there on the ground. As the right hon. Gentleman points out, some areas in Afghanistan are harder for aid agencies to reach than others, but we have already made a £10 million contribution to the common humanitarian fund, and we stand ready to assess any further requests. Our current assessment is that adequate support is getting through to people, but he is right to point out that we need to see what we can do to help the people who remain rebuild their lives and get them back on track.

The right hon. Gentleman is right to raise the issue of the work on women’s rights. As everyone recognises, this issue presents one of the biggest risks: as troop draw-down takes place and Afghanistan transitions to a future in which it takes responsibility for its own security, and a presidential election results in a new President, it is important that this aspect of progress—the advancement of women’s rights in a country that remains one of the toughest places in the world to be a woman—is not left behind. I can assure the right hon. Gentleman that I have made this issue a strategic priority for DFID within Afghanistan. We are undertaking a variety of projects that will continue in the coming years, such as the girls’ education project, and we will support the Government to make sure that the law on the elimination of violence against women is implemented on the ground. That will include working with the Ministry of the Interior and directly with the Afghan police, so that we can make sure that laws are implemented by them and they play their role in protecting and upholding women’s rights on the ground.

As the right hon. Gentleman pointed out, and as I mentioned in my statement, we have done work on women’s political participation. One of the most encouraging aspects of the recent first round of presidential elections—alongside perhaps less violence than we might have expected—was the number of women who are now exercising their right to vote. DFID played a role in the United Nations Development Programme, supporting the independent election commission, and on the ground in encouraging people to use their vote. In particular, it helped to ensure that women were registered, and that women candidates were supported and understood that they could be not just a voter within the election, but a participant. Some 300 women candidates came forward, and 20% of the provincial election council places will go to women after the election.

We are also ramping up our work on access to justice. We have teamed up with the existing Australian Government programme—a £3 million programme that will mean that we can provide better access to justice for women in six provinces. Of course, the existing Tawanmandi programme, which supports civil society organisations on the ground, continues. I am putting an extra £2 million into that, which should help to provide at least 10 grants to organisations that are focused on working to tackle violence against women.

The right hon. Gentleman raised the question of draw-down and security. Obviously, I cannot go into the details of that in the House, but he is right to point out that the environment faced not just by our forces but by Foreign Office and DFID staff working in Afghanistan is highly risky, even in the British embassy in Kabul. I would like to take this opportunity to pay tribute to those staff members, who do an immensely challenging job in difficult circumstances and are some of the most dedicated people I have come across in this job. I can assure the right hon. Gentleman that that duty of care to our staff is always of paramount importance.

[Sir Malcolm Bruce (Gordon) (LD)]

I thank the Secretary of State very much indeed not just for her statement but for its positive character and for the fact that she is making it, because that indicates DFID’s increasing importance and profile as Afghanistan moves from a situation of troop engagement to development. I want to reinforce the International Development Committee’s view that the test of success in development in Afghanistan will be the progress maintained by women. Indeed, I am grateful to the Secretary of State for emphasising women’s rights and development. Does she agree with me and our Committee that the status of women will be the key to Afghan development, that it is important that women are supported, that all the people of Afghanistan must understand that the progress of women will determine the successful development of their country, and that in that, they will have the full partnership of the UK Government?

[Justine Greening]

I pay tribute to the work the right hon. Gentleman’s Committee does in scrutinising my Department and the work we do in Afghanistan. I can assure him that we will continue to play our role, as a key donor, in helping the Afghanistan Government to continue to make progress on women’s rights. It is fantastic that we now have a statutory duty to look at gender equality in international development, thanks to my hon. Friend the Member for Stone (Mr Cash), so we will continue to do that work. His legislation has sent a message across the world about the UK’s stance on the rights of women and girls, and it will permeate our entire work.

Oral Answers to Questions

Debate between Lord Bruce of Bennachie and Justine Greening

Wednesday 5th March 2014 Commons Chamber

[Justine Greening]

We have already been part of the effort to vaccinate more than 200,000 children against polio in Syria—I think that I am right to say that—as part of the emergency support. The right hon. Gentleman is quite right to highlight that issue. In relation to education, the UK has played a leading role in designing the no lost generation initiative, which is all about making sure that we do not forget the impact of this terrible crisis on children, not least the lack of education.

[Sir Malcolm Bruce (Gordon) (LD)]

The UK contribution to humanitarian relief in the middle east has been unparalleled. Indeed, the United Nations would have had difficulty coping without it. Does the Secretary of State acknowledge, however, that it is difficult to sustain, and what is she doing to ensure that other countries, including France, make comparable contributions?

[Justine Greening]

We regularly raise our concerns about the lack of full funding for the UN appeal in relation to the Syrian crisis both in the European Union and more broadly internationally. My right hon. Friend is right to say that the UK has played a leading role: we are the second largest bilateral donor after the US, and we have already committed £600 million of funding to provide the vital humanitarian services and supplies that people need.

Oral Answers to Questions

Debate between Lord Bruce of Bennachie and Justine Greening

Wednesday 22nd January 2014 Commons Chamber

[Justine Greening]

I do not think that the right hon. Gentleman is right. Obviously, the Home Secretary has already responded to the UN in relation to the issues that he has just raised. We will continue to look at what we can do to support the refugees. It would be wrong for anybody to say anything other than that the UK has played a leading role in the extent, the co-ordination and, latterly, the shaping of our support, in particular focusing it on helping children affected by the crisis.

[Sir Malcolm Bruce (Gordon) (LD)]

With a contribution of £600 million, the Government are probably the lead contributor to humanitarian relief, but does the Secretary of State acknowledge that there is concern that if there is not a solution to this crisis in the coming 12 months, there will not be enough resources in the world to meet humanitarian crises elsewhere? It is absolutely imperative that everything is done to try to achieve a situation in which we can sustain the support.

[Justine Greening]

Ultimately, we need a political solution to move forward in Syria, which is why the Geneva II talks are so important. We all hope that we can see progress there, but nobody underestimates the challenges.

Oral Answers to Questions

Debate between Lord Bruce of Bennachie and Justine Greening

Wednesday 4th December 2013 Commons Chamber

[Justine Greening]

First, we are highlighting the risks to women and girls in emergencies, which is why I held an international call to action summit the very week, as it turned out, that Typhoon Haiyan hit. In respect of the particular crisis mentioned, we have sent two of our specialist humanitarian experts who are particularly specialist in this area to work with the UN and the clusters that are providing support on the ground, to ensure that not only direct, but indirect support is provided across all the work that happens.

[Sir Malcolm Bruce (Gordon) (LD)]

Given the call on British development funds from the Philippines and the Central African Republic, and following the outfall from the conflict in Syria, how will the Department budget for what are, by definition, unpredictable disasters, given that it has now reached its budget ceiling?

[Justine Greening]

The right hon. Gentleman is right to reflect on the number of different parts of the world facing crises of one form or another that the Department for International Development is trying to play a role in assisting. As he will know, that is just part of the uncertainties we have to deal with as a Department. We have a budget set aside for humanitarian response, and ultimately it is a flexible budget. As the right hon. Gentleman will have seen over recent days, we announced additional support for the Central African Republic, because we felt it was appropriate.

Oral Answers to Questions

Debate between Lord Bruce of Bennachie and Justine Greening

Wednesday 23rd October 2013 Commons Chamber

[Justine Greening]

We are encouraging NGOs to work with grass-roots organisations, and they, too, understand that they need to do that. This is vital if we are to maintain the support of the host communities, who have been incredibly generous in accepting refugees. I should also point out to the right hon. Gentleman that one of the challenges is making sure that we can work with NGOs, which have the breadth and capacity to be able to work across the piece and across communities but are absolutely working on the ground with existing civil society organisations.

[Sir Malcolm Bruce (Gordon) (LD)]

May I thank the Secretary of State for the comprehensive evidence session that she gave to the International Development Committee yesterday? I welcome the leadership role that the UK has played in committing these funds, but will she urge other countries such as those in Europe and the middle east also to step up to the plate and ensure that the UN appeal is fully funded and Britain is not left in front without followers?

[Justine Greening]

I could not agree more with the right hon. Gentleman. Britain has done exactly the right thing in playing a leading role in the humanitarian response. It is absolutely right for the Syrian refugees, but right for us too, to try to do what we can to keep stability in the region. However, we cannot do that on our own, and it is now time, in the run-up to the next donor conference in January, for other countries in the international community to ask themselves what more they can do alongside the UK in making sure that the next UN donor appeal, unlike the last one, is fully funded.

--- Later in debate ---

[Sir Malcolm Bruce (Gordon) (LD)]

T7. What steps is the Department taking to ensure that ethnic conflict in Burma is brought to an end? Otherwise, it threatens both the stability and the development prospects of that country.

[Justine Greening]

The Department is working hand in hand with the Foreign Office to play its role in improving governance and accountability, not only at regional and governmental level, but at community level, where, clearly, so many of the root causes of that situation lie.

Oral Answers to Questions

Debate between Lord Bruce of Bennachie and Justine Greening

Wednesday 17th July 2013 Commons Chamber

[Justine Greening]

This is something that DFID has particularly focused on. We have given funding directly to UNICEF to support educational facilities—when I was in the Zaatari camp in Jordan, I saw school facilities that had recently been built—and to support counselling. I would like to look more carefully with the United Nations agencies at what we can do to provide trauma counselling for children and their parents, because many of them have gone through awful experiences before ending up in the refugee camps.

[Sir Malcolm Bruce (Gordon) (LD)]

When King Abdullah of Jordan was in London recently, he told us that there was a massive problem with crime, violent assault, rape, prostitution and trafficking involving women who had been displaced by the violence in Syria. What action are we taking to ensure that those women and girls can be protected, because currently they are not?

[Justine Greening]

We do our best work with the UN agencies, which are co-ordinating much of the relief to ensure that the most vulnerable are protected. The right hon. Gentleman will be aware that about 75% of the refugees leaving Syria are women and children, so this is incredibly important. Alongside that work, we clearly need to work in the host communities in places like Jordan to ensure that they are able to cope with this huge influx of people who are placing added pressure on their services, which can often cause tension leading to the kind of trouble that he has mentioned.

Oral Answers to Questions

Debate between Lord Bruce of Bennachie and Justine Greening

Wednesday 12th June 2013 Commons Chamber

[Justine Greening]

We have made beneficial ownership one of the key elements of our G8 agenda, and it is right to do so. I do not recall the hon. Gentleman’s Government particularly pushing on the issue during their 13 years in office. I can assure him that the best way to make a difference for developing countries is to get international agreement. That is what they want and that is why we are trying to get it.

[Sir Malcolm Bruce (Gordon) (LD)]

In the light of the Select Committee on International Development’s recent report, and following the election, will the Secretary of State engage with the Government of Pakistan to ensure that Ministers, MPs and the leaders of the community there pay their fair share of taxes to match the contribution that British development aid is making to Pakistan?

[Justine Greening]

We have a question on the Order Paper later about Pakistan, Mr Speaker. I have already spoken with Ministers in the Pakistani Government, and the Committee’s report was right to highlight this issue.

Oral Answers to Questions

Debate between Lord Bruce of Bennachie and Justine Greening

Wednesday 12th December 2012 Commons Chamber

[Justine Greening]

We currently have an aid programme of around £270 million a year. After we complete our transition to technical assistance, we expect to spend approximately just under £30 million from 2015 onwards, to help the Indian Government to get the most out of the £50 billion a year they spend on things such as health and education.

[Sir Malcolm Bruce (Gordon) (LD)]

I appreciate that the Secretary of State has negotiated the changed arrangement with the Indian Government and the state governments, but does she not acknowledge that India still has more poor people than sub-Saharan Africa? Is she prepared to consider not only technical assistance, but perhaps changing the relationship to soft loans, so that India can accelerate poverty reduction using the substantial pro-poor measures it is already adopting?

[Justine Greening]

The right hon. Gentleman is right that our relationship with India will go beyond technical assistance. It will include us helping with investments in small and medium-sized enterprises, particularly in rural and poorer areas of India, so that we not only help them to get the most out of India’s development spend, but drive economic development too.

UK Aid (Uganda and Rwanda)

Debate between Lord Bruce of Bennachie and Justine Greening

Monday 19th November 2012 Commons Chamber

[Justine Greening]

I am disappointed by the tone that the hon. Gentleman has taken on this important matter, and by his attempt to politicise something that is of deep concern to hon. Members on both sides of the House. I can assure you, Mr Speaker, that, as you know, I make written ministerial statements whenever we believe them to be of a substance that is warranted in the House—[Interruption.] We did indeed make statements to the House, and I will endeavour to continue to do so. I am always happy to answer urgent questions on any issues, as you see fit, Mr Speaker.

On Rwanda, I should point out that, under my predecessor, the Government reduced the amount of general budget support from the levels we inherited. That support will continue to fall over the coming months. The shadow Secretary of State mentioned the President of Rwanda, but a Labour predecessor of mine called him a “sweetie”. Labour therefore has no ability to criticise the Government in relation to tracking the results of our aid or in relation to being clear on whether it is being spent appropriately. Whenever we have needed to take action to curb aid, we have done so.

The shadow Secretary of State may disagree with the reasons for partially putting through some further budget support earlier this year, but I have been clear with the International Development Committee, including last week, that I will take a look at all the evidence on the ground from all sources when I come to make my decision in December. I will not pre-empt that. When I met the Committee last week, the situation on the ground in eastern DRC was different from how it is today. He might want to pre-empt where we might be in December, which is when I will take my next decision, but it would not be correct for me to follow suit, as he wants me to do.

In relation to what conditions we will seek to see adhered to, we have been clear cut about both the partnership principles that we struck up with the Government of Rwanda and the PM’s conditions. I think they are absolutely right, and I will again look at them when I come to take my decision in December.

The hon. Gentleman asked what steps the Government had taken in relation to the Rwandan Government regarding the M23. The Foreign Secretary spoke with the Rwandan Foreign Minister at the weekend.

On Uganda, I have to say that we have taken action in a timely fashion in relation to suspending aid to Uganda. I presume the hon. Gentleman does not disagree with the decision I took. No, he clearly does not. I am delighted he supports the decision we have taken. If I can set out the chronology of what happened, in August we had initial reports of fraud and corruption in relation to the office of the Prime Minister—not in relation to our money, but other donor money. At that stage, we duly suspended our further funding to the office of the Prime Minister. After that, we initiated a forensic audit, and the initial results of that forensic audit have led me to suspend all aid, more broadly, to the Government of Uganda.

This has been a logical process that has taken account of all information, but has sought always to consider the fact that we still want to make sure that our development work in countries such as Uganda and Rwanda helps to alleviate the extreme poverty faced by the people on the ground on a day-to-day basis. These are often difficult decisions to have to take, but we take them based on the facts that we have at the time, and in discussion across Government. I hope that that answers the hon. Gentleman’s questions, and I look forward to other questions from my colleagues.

[Sir Malcolm Bruce (Gordon) (LD)]

I am sure that hon. Members in all parts of the House agree that what matters in this conflict is the needs of the people of Rwanda, Uganda and eastern Congo, and the need for them to receive the support and assistance that aid provides and also have some kind of trust in their own Governments. What steps will the Secretary of State take to consult all other donor agencies to try to ensure that we co-ordinate our response?

May I remind the House that this is not the first time that aid has been suspended to Uganda because of corruption? The previous Government had to do this, too. This is a disappointing development that suggests that the Ugandan Government have not learnt very much. I remind the House that the Select Committee on International Development is currently conducting an inquiry into the situation in Rwanda. We hope to have a report ready in time to help the Secretary of State with her decision.

[Justine Greening]

I appreciate the work the right hon. Gentleman’s Committee has done to help inform these important decisions. He is right that we discuss with other donors, both at official and ministerial level as appropriate, all views that are held about what is happening on the ground, and, critically, the implications for aid. As he rightly pointed out, we must always bear in mind that the point of development programmes is to help people on the ground. Surely, we have to bear that in mind before we simply turn off the tap. That is precisely what I intend to do.

Oral Answers to Questions

Debate between Lord Bruce of Bennachie and Justine Greening

Wednesday 31st October 2012 Commons Chamber

[Justine Greening]

My predecessor set out in his written ministerial statement the basis on which the Government’s decision was taken. My understanding is that it was based on officials’ advice.

[Sir Malcolm Bruce (Gordon) (LD)]

May I, too, welcome the Secretary of State to her position and say on behalf of the Select Committee on International Development that we look forward to engaging with her? She will be aware that we produced a report on conflict in the DRC, and we are undertaking one on the situation in Rwanda in the light of budget support being reinstated. Does she accept that the dilemma we face is that Rwanda is a country where development money delivers real results for poor people, but where issues such as freedom of speech and plurality are compromised? That is a dilemma we have to resolve.

Finance (No. 3) Bill

Debate between Lord Bruce of Bennachie and Justine Greening

Tuesday 3rd May 2011 Commons Chamber

[Justine Greening]

I just said that we accept that there will be a marginal impact; however, Wood Mackenzie has said that it does not expect that marginal impact to be high. If we look at Professor Kemp’s optimistic scenario of $90, which is less optimistic than what the OBR is projecting, and then use the hurdle rate most commonly used by most companies, we see that in the high-price scenario, total future projects are expected to fall from 1,099 to 1,074—a 2% reduction. We are saying that we recognise that. We therefore believe that the challenge is now for us to work with the industry to ensure that we can mitigate the risk to that 2% of investment.

I turn briefly to the amendments in the names of my right hon. Friend the Member for Gordon and my hon. Friend the Member for West Aberdeenshire and Kincardine. Clearly, the amendments enabled them to make the points they wanted to make, but I think they would accept that the way in which their proposals would operate could mean that the supplementary charge rise started later and lasted potentially for a finite time. It might also have a staged approach. All those things would mean that the funding would not be in place to fund the package we want to introduce for motorists. I stress, however, that as my right hon. Friend the Member for Gordon said at the end of this comments, the way through this is to ensure that we work with the industry. I am pleased with the engagement we have now had with the industry. We have got through our first meeting with industry representatives after the Budget, which was a chance for them to set out their reaction to a tax rise we did not anticipate they would welcome.

The Government amendments demonstrate that we are engaged with the industry and are listening to its concerns. In fact, as a result of that engagement we wanted to address a technical issue that had arisen involving the basis proposed for the apportionment of profits. The Government’s amendments seek to address that. The legislation provides for how profits in an accounting period that straddles the date of the rate increase are to be split, so that the two tax rates can be applied to the appropriate amounts of profits. Government amendment 11 provides that a company may elect for a just and reasonable basis to be used where a time apportionment would give an unjust or unreasonable result.

We have proposed amendment 11 to take account of the concerns of industry. The amendment has an Exchequer cost of £40 million in 2011-12 only. We feel that the change is worth while because it ensures, for example, that the tax change does not affect the tax liability due in respect of transactions that were wholly completed before the Budget and that should not, therefore, have been affected by the rate change. The change follows an approach that the industry has suggested and shows that the Government are willing to change the detail of the delivery of their stated policy aims where evidence of unforeseen effects is presented by the industry. I urge hon. Members to accept the change.

This Government will carry on working with the industry on providing certainty in respect of decommissioning tax relief. Industry and officials will be engaging closely on that important piece of work in the coming months, and as previously mentioned, officials and Ministers are closely engaging with the industry in relation to the marginal field developments. We explicitly said that we would do that in the Budget, and we are now following up on that desire to ensure that investment continues to be unlocked. The concerns of gas producers are also being discussed with them. As I have mentioned, the Government are also seeking the views of oil companies and motoring groups about the level of the trigger price for the supplementary charge, and how the oil price for that purpose is to be determined. That informal consultation will be take place shortly, and we expect to be able to clarify the policy mechanism in the autumn.

We want to ensure that the Exchequer obtains a fair share of the value of our natural resource wealth while ensuring that the tax regime does not impede the development of the basin’s potential. The impacts of the measure are understood, so no further assessment is required, and I urge the Opposition not to press the amendment. It is impossible not to note that they voted—[Interruption.] I was actually referring to amendment 10, which I would have thought Labour Members would recognise, having proposed it—although I suppose that anyone who has voted for a tax cut on fuel duty, even though they have no way of paying for it because they have set out their stall against getting the funding mechanism from the oil companies, might be expected not to have followed the arguments that I have set out.

The amendments proposed by my right hon. Friend the Member for Gordon are well intentioned. Let me reassure him once again that we are listening to representations from the industry and acting to ameliorate unforeseen effects. I therefore urge hon. Members to accept the Government amendments. The clause puts in place a fair fuel stabiliser, ensuring that we can pay for much needed help for motorists up and down the country. The clause also ensures that motorists and businesses suffer less pain from high prices at the petrol pump as a result of higher oil prices that would otherwise simply increase the profits of oil companies.

[Malcolm Bruce]

We have had a very useful debate, in which Members from all parts of the Committee have had the opportunity to express some pretty forceful points of view about the industry, as well as present facts from well informed sources. It is perhaps unfortunate that it is so late, but this still stands on the record as a valuable debate.

I thank the Minister for her constructive response and for the information about the Government’s detailed engagement. It would be fair to say that the immediate situation after the Budget was that the Government mounted a robust defence of their line against an industry that was shocked at what it heard. Perhaps the first meeting was less than constructive, although it is clear that things are now moving in the right direction. The amendments in my name and that of my hon. Friend the Member for West Aberdeenshire and Kincardine (Sir Robert Smith) suggest how we might have liked the Government to proceed. We recognise that the die has been cast, although it is important that the Government should continue to engage with the industry to understand the issues of competitiveness, because the oil price is worldwide and the UK has to compete for that investment.

It is also important to take on board the fact that although the losses in production and investment might be considered marginal, we are talking about margins on huge sums of money and huge resources. In other words, we are talking about 1 billion to 2 billion barrels of oil-equivalent, which is worth £70 billion to £100 billion, and £20 billion-plus of potential lost investment. It is important that the engagement between the industry and the Government finds solutions that can deliver the revenue that the Government need and are entitled to accept, given the very high prices, as well as delivering to the country the investment in long-term production that it needs. I believe that this debate has made a substantial and useful contribution. I welcome the Minister’s response to it, and I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Amendments made: 11, page 3, line 13, at end insert:

“(4A) But if the basis of apportionment in subsection (4)(b) would work unjustly or unreasonably in the company’s case, the company may elect for its profits to be apportioned on another basis that is just and reasonable and specified in the election.”

Amendment 12, page 3, line 16, leave out “subsection (4)” and insert “subsections (4) and (4A)”.

Amendment proposed: 10, page 4, line 7, at end add:

“ (11) The Chancellor shall produce, before 30 September 2011, an assessment of the impact of taxation of ring fence profits on business investment and growth including an assessment of the long-term sustainability of oil and gas exploration in the North Sea.”—(Kerry McCarthy.)

Question put, That the amendment be made.