Oral Answers to Questions

Lord Cameron of Chipping Norton Excerpts

Wednesday 4th July 2012 Commons Chamber

[Fiona O'Donnell (East Lothian) (Lab)]

Q1. If he will list his official engagements for Wednesday 4 July.

[The Prime Minister (Mr David Cameron)]

I am sure that the whole House will wish to join me in paying tribute to the three British servicemen who were killed in Afghanistan in the appalling incident on Sunday, Guardsman Apete Tuisovurua and Guardsman Craig Roderick of 1st Battalion Welsh Guards and Warrant Officer Class 2 Leonard Thomas of the Royal Corps of Signals. We send our heartfelt condolences to the families of the servicemen who were killed in that tragic incident. They will never be forgotten by our nation.

This morning, I had meetings with ministerial colleagues and others. In addition to my duties in this House, I shall have further such meetings later today.

[Fiona O'Donnell]

I am sure that the whole House will want to associate itself with the Prime Minister’s remarks and to send our deepest condolences to the families of the crew from RAF Lossiemouth who were lost earlier this week.

Food prices rose by 4.6% between March last year and this year. I understand why, so will the Prime Minister spare me the lecture and tell the House what he is doing about food inflation?

[The Prime Minister]

First, I join the hon. Lady in what she said about the Tornado aircraft accident at RAF Lossiemouth. She is right that our thoughts should be with the friends, families and colleagues of those involved. The circumstances remain uncertain, but it was clearly a serious incident. The investigation is ongoing and more details will be released by the RAF in due course. It is a reminder of the risks that our service personnel take, not only when they are on active service, but when they are undergoing vital training for that service.

On food inflation, I would first make the point that inflation is now falling in our country, which is extremely good news. It is vital that the food prices in our shops are not too hard on people’s budgets, but the way to keep inflation down is to have a responsible monetary policy, which is what we have in our country.

[Nicholas Soames (Mid Sussex) (Con)]

Does my right hon. Friend agree that although the serious banking difficulties must be dealt with, it is vital that we retain the central importance of the City of London, and that any reforms must be proportionate and not damage such a brilliant asset for our country?

[The Prime Minister]

My right hon. Friend makes an important point. We have to get to the bottom of what has happened and we have to do so quickly. In doing that, we should bear in mind the remarks of Richard Lambert, who ran the CBI very successfully for many years, who carried out an investigation for the Labour party and whom I respect a great deal:

“the Libor scandal means that the required changes have to be tougher…that is the argument for a short, sharp inquiry. Going back to square one would, to put it mildly, be a serious mistake. The economy cannot recover in the absence of a stable banking system: nothing can be more urgent than that.”

That is not the only consideration. We must get to the truth, but we should listen to such expert opinions as well.

[Edward Miliband (Doncaster North) (Lab)]

I join the Prime Minister in paying tribute to Guardsman Apete Tuisovurua, Guardsman Craig Roderick of 1st Battalion Welsh Guards and Warrant Officer Class 2 Leonard Thomas of the Royal Corps of Signals, who died in the most tragic of circumstances. Our hearts go out to their families and friends. I also join the Prime Minister in his remarks about the incident at RAF Lossiemouth.

The banking scandals of the last week have revealed traders cheating and the mis-selling of insurance products to small businesses, and come on top of other scandals in the banking system and the continuing multi-million-pound bonus merry-go-round. How can the Prime Minister convince people that a parliamentary inquiry is a better way of restoring people’s confidence than a full, independent, forensic and open judge-led inquiry?

[The Prime Minister]

On the substance of the issue, there is no disagreement between us. This banking scandal is appalling. It is outrageous, frankly, that home owners may have paid higher mortgage rates and small businesses may have paid higher interest rates because of spivvy and probably illegal activity in the City. People want to know that crime in our banks and financial services will be pursued and punished like crimes on our streets. As well as people being held accountable, the public want rapid action to make sure that this cannot happen again.

In my view, the most important thing about an inquiry is that it is swift and decisive, is set up as fast as possible, gets going as fast as possible, reports as fast as possible and is transparent and open at every stage. That is why I favour a public parliamentary inquiry rather than a judge-led inquiry. I want us to legislate on this, starting next year.

[Edward Miliband]

I do understand the Prime Minister’s concerns about speed, but there are concerns also that the inquiry that has been talked about is far too narrow, focused solely on the scandal of LIBOR when we know that the problems go much wider, to the culture and practices in the City. I believe, however, that there is a way forward that we could agree upon—that we have a two-part, judge-led inquiry that is instructed to report by Christmas on the scandal surrounding LIBOR, which is his timetable. The second part of the inquiry should look, over 12 months, at the much wider area of the culture and practices of the industry. That would satisfy his requirement of speed but also the necessary requirement to look at the wider culture and practices in the City. Will he agree to my proposal?

[The Prime Minister]

I always listen carefully to proposals from all parts of the House. Let me make three points in response. First, on the structure and future of banking, we set up the Vickers inquiry. It reported, and we are going to implement that inquiry, which will for the first time separate investment banking from retail banking. That is a major step forward. Secondly, the parliamentary inquiry that we are proposing is wider than the right hon. Gentleman says. It will look at the culture of banking, as my hon. Friend the Member for Chichester (Mr Tyrie) confirmed this morning.

My third point—all these points need to be considered—is that the Serious Fraud Office is still considering whether to launch a criminal investigation. While that is happening, there are dangers in opting for a judge-led inquiry, which might not be able to get under way. If we want to do this as fast as possible and get action as fast as possible, I think the way we have suggested is right. There was a vote last night in which the House of Lords voted against a public inquiry, and we have made time available on Thursday—this has not happened before—for an Opposition motion and a Government motion to be debated and voted on. Frankly, what matters more than the process is the substance and getting on with it. I hope we can accept the results on Thursday.

[Edward Miliband]

We were in exactly the same position a year ago, when the Prime Minister initially rejected the idea of a judge-led inquiry into the press scandal and then rightly changed his mind. In justifying that decision, he said:

“I don’t believe there is any better process than an inquiry led by a judge”.

He said that would happen with

“the whole thing…pursued…by a team of barristers who are expert at finding out the facts”.—[Official Report, 30 April 2012; Vol. 543, c. 1251.]

Why is it right to have that judge-led approach to the scandal in the press but wrong for the scandal in the banks?

[The Prime Minister]

I think there is a very profound difference between the circumstances of the Leveson inquiry and the circumstances of this inquiry, because of course the Leveson inquiry followed a whole series of unsuccessful and failed inquiries. On this occasion we have had a very successful inquiry by the Department of Justice in America and the Financial Services Authority, which has uncovered the wrongdoing. Now what is required is swift inquiry, swift action and swift legislation. That is what you will get from this Government.

[Edward Miliband]

I do not think the Prime Minister has understood the depths of public concern and the depths of the lack of confidence. He says both that the inquiry that he proposes can be completed within essentially four months and that it can go as wide as it likes. That is simply not realistic. I have listened to his concerns and proposed a way forward. I ask him again for a two-part inquiry, with a judge, to complete the part on LIBOR on the Chancellor’s timetable—by Christmas—and then to look at the wider issues about the culture and practices of the City, of which there are many.

[The Prime Minister]

I understand the public concern about this issue, which is why I want us to get on with it. Frankly, it is this Government who are legislating to split the banks, as Vickers suggested; who are scrapping the tripartite agreement that failed so badly under the last Government; who have introduced the bank levy so that the banks pay their taxes properly; and who have introduced the most transparent regime for pay and bonuses in any financial centre anywhere in the world. As evidence that the House of Commons is getting on with it, we are going to see Bob Diamond questioned upstairs by the Treasury Select Committee this afternoon. I say to the right hon. Gentleman that we are having a vote in the House of Commons tomorrow—a vote on his motion and a vote on the Government motion. Clearly, if the Opposition motion wins, there will be a full independent public inquiry. I urge him to say now that if the Government motion is carried, he will co-operate with a full parliamentary inquiry.

[Edward Miliband]

I do not think the Prime Minister gets it about the depth of public concern. I hope that he will reconsider his position. He says that the Government are implementing the Vickers inquiry. On a very important issue that has come out in the past two weeks—high street banks selling dodgy products to small businesses—the Vickers commission said that it should never be allowed to happen again, yet after lobbying by the banks the Government rejected this basic recommendation of Vickers. In the light of the recent scandal, with small businesses damaged, will he now U-turn and implement the Vickers recommendations in full?

[The Prime Minister]

First, I will not take a lecture on getting it from a party that was in office for 13 years when all these things took place. On his specific question about the Vickers inquiry, let me repeat that it was set up by this Government and will be implemented by this Government—something that had not happened before. Under the inquiry, complex derivatives will be included in the investment bank ring fence, not in the retail banks, which we want to make safer. But let me just say this to the right hon. Gentleman: if he wants a quick resolution, he must accept the outcome of a vote in the House of Commons. I am prepared to do that. Why is he not?

[Edward Miliband]

Mr Speaker—[Interruption.]

[Edward Miliband]

If the Prime Minister wants a history lesson, let me repeat what he told the City of London on 28 March 2008:

“As a free-marketeer by conviction, it will not surprise you to hear me say that”

the problem “of the past decade” is “too much regulation”.

Does that not say it all about the double standards of this Prime Minister? Whenever these scandals happen, he is slow to act and he stands up for the wrong people. The question people are asking is, “Who will act in the national interest, rather than the party interest?” His is a party bankrolled by the banks. If he fails to order a judge-led inquiry, people will come to one conclusion: he simply cannot act in the national interest.

[The Prime Minister]

Everybody can see what is happening here. [Interruption.]

[Mr Speaker]

Order. Members must calm down. I said it to Government Back Benchers and I am now saying it to Opposition Back Benchers: let the answer be heard.

[The Prime Minister]

The party opposite want to talk about absolutely everything apart from their record of 13 years in government. I have to say that we may have found the Higgs boson particle, but Labour has not found a sense of shame.

[Esther McVey (Wirral West) (Con)]

Today is a hugely significant day for British scientists with the announcement of the Higgs boson discovery. Some 6,000 scientists worked on it worldwide—700 from the UK—and there was a major contribution from the north-west. A constituent of mine, Professor Phil Allport, head of particle physics at Liverpool university, led the ATLAS experiment. Will the Prime Minister confirm this Government’s commitment to science and to institutes in the north-west?

[The Prime Minister]

My hon. Friend is absolutely right to raise this issue, the immense British contribution there has been to this extraordinary breakthrough—not least that of Higgs himself—and the extraordinary work that, as she says, is done in the north-west of England. It is a very big step forward and we should congratulate everyone involved. This Government’s commitment to the science budget is without any doubt, not least because although we have had to make difficult cuts, we have preserved the science budget.

[Jim Shannon (Strangford) (DUP)]

Q2. The last 15 days have witnessed absolute chaos in the Ulster bank. Direct debits continue to be removed and wages have not been put into accounts. Ulster bank is owned by RBS. We, the people, have an 82% share in RBS, so the Government have a major say in what happens in the Ulster bank in Northern Ireland. Will the Prime Minister give an assurance to the 100,000 Ulster bank customers that the Prime Minister and the Government will have a direct input in addressing this issue, and that normal banking will resume immediately?

[The Prime Minister]

I can quite understand why the hon. Gentleman raises this on behalf of his constituents. What happened is not acceptable. Clearly, it is an operational matter for the bank, but the Financial Services Authority has been monitoring this very closely. My right hon. Friend the Secretary of State for Northern Ireland spoke yesterday to the chairman of RBS. The lessons must be learned, but I can tell the hon. Gentleman that RBS has said that it will reimburse any customer for penalty charges or overdraft fees—anything that is incurred because of these difficulties.

[Eric Ollerenshaw (Lancaster and Fleetwood) (Con)]

Q3. To be blunt, my constituents and businesses are losing faith in their banks. What they need from the Prime Minister is a reassurance that there will be no more political skeletons in the cupboard left by the Labour party.

[The Prime Minister]

What matters for my hon. Friend’s constituents and, frankly, for everyone in this House is that we get to the bottom of what happened as quickly as possible. We have had a vote in the House of Lords; we will have a vote in the House of Commons; and then we need to get on with it. We are sent to this House to hold these inquiries, to find these facts, to pass these laws. Let us get on with it.

[Mr David Hanson (Delyn) (Lab)]

Q4. Yesterday, 117 manufacturing jobs were lost in my constituency on a rising trend of unemployment in north Wales. Will the Prime Minister confirm to the House that last week’s GDP figures showed that his Government’s performance was worse than he expected and requires change, and that the cause is his Government’s policies?

[The Prime Minister]

I very much regret any loss of jobs, including in the right hon. Gentleman’s constituency, particularly as, since the election, we have seen 800,000 extra jobs in the private sector. I am very concerned about the economic performance in Wales, which over the last decade or more has actually fallen further behind the rest of the United Kingdom. We need to work very hard with the Welsh Assembly Government to try to make sure that we are making Wales more competitive.

[Stephen Lloyd (Eastbourne) (LD)]

A key part of the Health and Social Care Act 2012 is that clinical change must be led by clinicians and patients. In my own hospital, the Eastbourne district general hospital, the majority of consultants have said that they have no confidence in the trust’s proposed clinical change, and the vast majority of the public in Eastbourne share that lack of confidence. Will the Prime Minister confirm that the local trust has to listen to the Act, the clinicians and local people in Eastbourne?

[The Prime Minister]

I can absolutely confirm that. Clearly, changes should not go ahead unless there is proper listening to local clinicians and local people. That is how our health service should operate. My right hon. Friend the Health Secretary will be making an announcement shortly. The good news is that across the health service in-patient and out-patient waiting times are down, and we have the best ever performance for patients waiting for longer than 18 weeks to be treated. Added to that, the number of mixed-sex wards is down and rates of infection are down; the health service is doing well.

[Anas Sarwar (Glasgow Central) (Lab)]

Q5. The Prime Minister will be aware that the Crown Office in Scotland has confirmed that it has been carrying out an investigation, led by the serious crime division, into allegations that several banks, including state-owned RBS, have provided false information to financial markets. Does the Prime Minister back that investigation? Given the scale of the crisis and the scale of public anger, will he back a full, independent, judge-led inquiry and, crucially, will he give us a free vote in the House tomorrow?

[The Prime Minister]

There are two important things here. First, we should allow all the investigative authorities to carry out their investigations and take them wherever the evidence leads them. That is true for the Serious Fraud Office, and it is true for the Financial Services Authority—we need to ensure that they have the resources necessary to do that. Then we have to consider the nature of the inquiry. The problem with the suggestion the hon. Gentleman makes is that as these investigations are ongoing, it is actually easier to hold a rapid investigation within Parliament than to set up an investigation outside Parliament.

[James Wharton (Stockton South) (Con)]

Q6. What message would the Prime Minister send to the emergency services, local authorities and communities across the north-east, which swung into action so effectively when the region was hit by flooding last week?

[The Prime Minister]

The first thing I would say is huge congratulations and thank you to the emergency services. I saw for myself—not in my hon. Friend’s constituency, but when I was in West Yorkshire—the incredible work that was done. The other thing to note is that whenever these things happen, there is an incredible coming together of community and social action to help people who have been flooded out of their homes. I am sure that everyone, in all parts of the House, will want to thank people for what they have done on others’ behalf.

[Ian Lucas (Wrexham) (Lab)]

Q7. On the question of a European referendum, is it the policy of the Prime Minister to be indecisive, or is he not sure?

[The Prime Minister]

I wonder how long in front of the bathroom mirror that one took. The point is this. There are two things that would not be right: the first would be to hold an in/out referendum now—I do not think that is the right approach—and the second would be to rule it out for all time. I have no idea what the hon. Gentleman’s party’s policy is.

[Mr Julian Brazier (Canterbury) (Con)]

Does my right hon. Friend agree that central to any reforms of banking must be, from the point of view of ordinary punters, two things: first, the proposals which we are already working up to ensure that people can move their accounts quickly, cheaply and easily; and secondly, an absolute guarantee that Governments will never again bail out banks?

[The Prime Minister]

My hon. Friend makes two very important points. On the first point, about people being able to move their bank accounts, that will be in place later this year. On the issue of bailing out banks, we need to put in place mechanisms so that banks can fail without calling on taxpayers to support them. That resolution regime, which for 13 years was left untouched by Labour, has been dealt with by this Government.

[Graham Stringer (Blackley and Broughton) (Lab)]

Q8. The euro now has a solid record of destroying jobs and democracy throughout Europe. The Prime Minister is failing to repatriate any powers or resources to this country. When is he going to stop dithering and allow the electorate in this country to have a referendum on the European Union to decide whether to stay in or get out of that mess?

[The Prime Minister]

We have repatriated one power, which is that we have got out of the bail-out that the last Government put us into, and that is saving us billions of pounds. If the hon. Gentleman takes that view, he should be sitting on this side of the House rather than that side.

[David Morris (Morecambe and Lunesdale) (Con)]

I want to draw my right hon. Friend’s attention away from banking for one moment—[Interruption]—and the Opposition’s attention—to more important matters: children’s lives in my constituency. Five children in my constituency have been involved in an accident on a crossing outside St Peter’s school in Heysham. I know this is a county council matter, but I would like the Prime Minister to assist me in trying to get a crossing outside St Peter’s school.

[The Prime Minister]

My hon. Friend is entirely right to raise a constituency case such as this, where so many people have lost their lives and where there is such a threat to safety. I will certainly look at what he says. As he says, it is a matter for the county council, but if I can help him to put his case, I will be pleased to do so.

[Jonathan Ashworth (Leicester South) (Lab)]

Q9. Leicester is bearing the brunt of the Prime Minister’s double-dip recession, with the sad news today that yet another business is going under, resulting in the loss of local jobs. In that context, was he as disappointed as I was at the figures released last month showing that lending to small businesses was down by £1.7 billion? Is it not clear that the Chancellor’s credit easing policies are not working?

[The Prime Minister]

The credit easing policy—the national loan guarantee scheme—is going to make available £20 billion of extra loans; some of that money is already available. The Merlin scheme saw lending to small businesses go up in 2011. It is difficult when the banks are nervous about the economic situation, but the Treasury and the Bank of England are doing all that they can, including through the Merlin agreement, to get money out of the banks and into hard-pressed businesses.

[Sir Peter Tapsell (Louth and Horncastle) (Con)]

If, as a result of this shameful banking crisis, bank executives are dismissed or forced to resign, and the boards of their banks fail to act appropriately, will the Government do their best to ensure that the delinquents are not able to walk away with their bonuses and severance payments?

[The Prime Minister]

The Father of the House makes an extremely good point. It would be completely wrong if people who were leaving in those circumstances were given some vast pay-off. It would be completely inexplicable to the British public, and it would not be right. I very much hope that it does not happen. In terms of what the Government can do, we are going to legislate so that all pay deals are put to shareholders with a binding vote, and those deals should include any severance payments. The party opposite had 13 years to do that; we are going to do it in two.

[Mr Michael Meacher (Oldham West and Royton) (Lab)]

Q10. Given that the richest 1,000 persons in Britain made gains of £155 billion in the past three years of austerity, why will the Government not charge those gains at the capital gains tax rate, which would bring in about £40 billion? That would be enough, without any increase in public borrowing, to generate 1 million or more jobs. It would be far better to cut the deficit in that way—through growth, rather than through the Chancellor’s failed slump.

[The Prime Minister]

I hate to remind the right hon. Gentleman, but he was a Minister in the Government whose capital gains tax rules meant that people in the City were paying less in tax than their cleaners were paying. We have lifted the rate of capital gains tax to 28% so that we have a fairer system.

[Duncan Hames (Chippenham) (LD)]

Q11. The pupils I met recently at Corsham primary school told me, in their own creative ways, that they liked to learn together. They know, however, that many children in other countries never get that chance. How will the Prime Minister, as chair of the United Nations high-level panel on the millennium development goals, restart efforts to ensure that all girls and boys around the world go to school?

[The Prime Minister]

My hon. Friend raises an important point. Many of us will have seen the “Send my Friend to School” campaign in our own constituencies; it is a brilliant way of teaching young people the importance of showing responsibility for those on the other side of the world who do not have the advantages that they do. Our aid is currently supporting 5.3 million children in primary education, and we hope to up that to 9 million people by 2014, so the Government are playing their part, but we want all of civil society—schools, parents and teachers—to join in that magnificent effort.

[Mr Nigel Dodds (Belfast North) (DUP)]

In addition to what the Prime Minister said earlier about the Ulster bank crisis in Northern Ireland, in which households, individuals and businesses are being denied even basic banking facilities, will he and the Chancellor talk to Her Majesty’s Revenue and Customs to ensure that some flexibility will be shown towards the liabilities of those households, individuals and businesses so that they can be helped through the cash-flow problems that are the result of problems that they did not create?

[The Prime Minister]

I will certainly look at what the right hon. Gentleman says. As I said, RBS has said that it will ensure that people do not lose out through banking charges, but I will discuss his point about HMRC with the Chancellor.

[Margot James (Stourbridge) (Con)]

Q12. I welcome the Government’s commitment to women and girls at the heart of their development policy. As this weekend’s Tokyo conference on the future of Afghanistan approaches, will the Prime Minister consider making aid to Afghanistan conditional on the protection of the hard-won rights of women and girls, which, as he knows, are under attack?

[The Prime Minister]

My hon. Friend makes a very important point. Whereas in 2001 fewer than 1 million children—and, of course, no girls—were attending school in Afghanistan, today 6 million children regularly attend school and 2 million of them are girls. I will reflect carefully on what she says about our aid programme and discuss it with the Secretary of State. It is important that we attach conditions and have real transparency and proper results from our aid. I think that is the only way we can take people with us as we continue to expand our aid budget at a time of economic difficulty at home. My hon. Friend is absolutely right to raise this issue because if we want a stable and prosperous as well as a safe Afghanistan, we need an Afghanistan where the role of women is properly respected.

[Mr Michael McCann (East Kilbride, Strathaven and Lesmahagow) (Lab)]

Q13. May I give the Prime Minister the opportunity to answer the question put to him a few moments ago by my hon. Friend the Member for Glasgow Central (Anas Sarwar)? If the Prime Minister believes in the sovereignty of Parliament, will he confirm that there will be a free vote across the House tomorrow?

[The Prime Minister]

There was a vote last night in the House of Lords when Labour peers were heavily whipped to vote for the Labour position. I have a clear view, the Government have a clear view and the whole of the coalition Government have a clear view about the right way ahead. There will be a motion for the Labour party, which they can vote for, and a motion for us, which we can vote for. Let me put this one more time to the Leader of the Opposition: I will be bound by a vote for a full public inquiry; will he be bound if the House votes for a parliamentary inquiry? If he cannot answer that question, people will take a very dim view of an Opposition party that stands in the way of an inquiry because they do not want their dirty washing done in public.

[Andrew Stephenson (Pendle) (Con)]

Q14. The Olympics provide a great opportunity to bring our nation together. Does the Prime Minister therefore share my dismay at the plans of some union leaders to disrupt this summer’s events?

[The Prime Minister]

My hon. Friend makes an important point. The Unite union is encouraging strikes on our buses in London. The Leader of the Opposition likes to talk about standing up to vested interests, but what have we heard from him on the trade union movement? Absolutely nothing, and the whole country will be listening to that. We want a strike-free Olympics, and Labour should talk to its paymasters about it.

[Pat Glass (North West Durham) (Lab)]

Q15. We all witnessed last week’s storms across the country. My own village of Lanchester hit the headlines because of the floods. We are all grateful to the police, the fire brigade, Durham county council and the Weardale mountain rescue service, but will the Prime Minister confirm that the Government will be there with real money to support these people and these agencies, and not offer just nice warm words?

[The Prime Minister]

Of course we will be there to do that. We are investing around £2 billion in future flood defences. Of course, all the emergency services have done an excellent job, and they remain ready to carry out further work if necessary. I also think the Government should lend a very sympathetic ear to the local councils and local organisations that are setting up hardship funds to help families, perhaps those that do not have insurance or cannot afford the excess when it comes to dealing with their problems. I have said to the Department for Communities and Local Government that we should be generous in helping people to get their lives back together again.

[George Freeman (Mid Norfolk) (Con)]

Will the Prime Minister join me in welcoming the news that over £1 billion has been raised in the last six months for start-ups in our life science sector—more than in the last three years combined? Does he agree that this is a massive statement of confidence in our innovation economy and in our policies to make Britain a place to do business?

[The Prime Minister]

My hon. Friend has a close interest in life sciences and pharmaceutical industries, and knows a lot about what he says. One of the successes with part of the EU patent court coming to London is that the patents that cover life sciences, pharmaceuticals and similar industries will be in London as well. That means many, many jobs and tens of millions of pounds of investment in this industry and in our capital city.

Oral Answers to Questions

Lord Cameron of Chipping Norton Excerpts

Wednesday 16th May 2012 Commons Chamber

[Paul Maynard (Blackpool North and Cleveleys) (Con)]

Q1. If he will list his official engagements for Wednesday 16 May.

[The Prime Minister (Mr David Cameron)]

I am sure that the whole House will wish to join me in paying tribute to the two servicemen who were killed in Afghanistan on Saturday, Corporal Brent McCarthy of the Royal Air Force and Lance Corporal Lee Davies of the 1st Battalion Welsh Guards. Our deepest condolences are with their families and their loved ones. They were both courageous and highly respected men who were engaged in the vitally important work of training and mentoring the Afghan police, and their service to our nation must never be forgotten.

This morning I had meetings with ministerial colleagues and others. In addition to my duties in the House, I shall have further such meetings later today.

[Paul Maynard]

May I associate myself with the Prime Minister’s correct tribute to our fallen servicemen? It is the right thing to do.

I welcome the fall in unemployment of which we have learnt today, and, perhaps more important, the rise in employment. Can the Prime Minister assure me that he will continue to invest in the apprenticeships, the Work programme, and the other schemes that get my constituents, and all our constituents, back to work?

[The Prime Minister]

I thank my hon. Friend for what he has said about the schemes that we are introducing. It is welcome that we have seen the largest rise in employment for over a year, that the number of people in work has risen by 370,000 since the last election, and that the number of private sector jobs has increased by more than 600,000. However, we are not remotely complacent. Although there is good news about youth unemployment and the fall in the claimant count, there are still too many people in part-time work who want full-time work, and we still face the challenge of tackling long-term unemployment. We are not complacent, but whereas the flexible new deal took four years to put in place, the Work programme has been put in place within 12 months, and is targeted at helping the difficult to help and the long-term unemployed whom we want to help back to work.

[Edward Miliband (Doncaster North) (Lab)]

May I join the Prime Minister in paying tribute to Corporal Brent McCarthy of the Royal Air Force and Lance Corporal Lee Davies of the 1st Battalion Welsh Guards. They both showed the utmost bravery and courage, and our thoughts are with their families and friends.

We need to ensure that the welcome reduction in unemployment that has been announced today is sustained by economic growth. Can the Prime Minister tell us what discussions he has had with the new President of France about a growth plan for Europe?

[The Prime Minister]

First, let me welcome the fact that, on this occasion, the right hon. Gentleman has welcomed the fall in unemployment. Unemployment has come down and the claimant count has come down, and I think it is worth making the point that the number of people on out-of-work benefits has fallen by 70,000 since the election. However, there are still challenges, and we must go on investing in apprenticeships and in the Work programme.

I had a brief discussion with the President of France after his victory, and I look forward to having a longer bilateral with him before the G8 starts this weekend. I look forward specifically to discussing what more we can do to help in terms of European growth. As the right hon. Gentleman will know, together with the Italian Prime Minister and many other Prime Ministers, we have put forward a whole series of steps that can help the European economy to move. Let us complete the energy single market; let us complete the digital single market; let us complete the services single market. These things could seriously add to growth in Europe. That is what we should be focused on in Europe, and I look forward to discussing that, and more, with the French President.

[Edward Miliband]

If I may say so, it is a shame the right hon. Gentleman did not see the French President three months ago, when he was in the United Kingdom. But I am sure that a text message and “LOL” will go down very well.

Europe needs a proper growth plan, which this Prime Minister has failed to argue for, and Britain needs a proper growth plan, which he has failed to come up with. Business is pleading with the Government for a growth plan. Does he really agree with the Foreign Secretary that the problem with our economy is that British business is not working hard enough?

[The Prime Minister]

I have to admit that perhaps I have been overusing my mobile phone—but at least, as Prime Minister, I know how to use a mobile phone, rather than just throw it at the people who work for me. You can probably still see the dents!

I do think there will be common ground between the British view of what needs to happen in Europe and the French view. I note that the French President, when asked how he would stimulate growth, said:

“The means cannot be extra public spending, since we want to rein it in”.

It is interesting that the French President does not back the Labour view that the way out of a debt crisis is to borrow more, spend more and add to the debt. But I do think that what we need in Britain—absolutely vital—are the low interest rates that we have, because when this Government came to power, we had the same interest rates as Spain. Today, ours are below 2%, whereas Spanish rates are over 6%. The shadow Chancellor was saying from a sedentary position that somehow this was delusional. Let me remind him that he said:

“the simplest measure of monetary and fiscal policy credibility”

is long-term low interest rates. Those were his words. That is what Britain has got, and that is what we must not lose.

[Edward Miliband]

The right hon. Gentleman totally failed to answer the question about the Foreign Secretary, who is saying that the problem in our economy is that British business is somehow not working hard enough. I notice that the right hon. Gentleman is now trying to claim the President of France as an ally—what is he on? But there is one group of people whom we know are losing their jobs, and that is the police, 30,000 of whom marched on the streets last week. Can the Prime Minister tell us how many front-line police officers have been lost since he came to power?

[The Prime Minister]

I am not surprised that the right hon. Gentleman wants to rush off the economy after his first few questions. Let me just remind him what this Government are doing to boost our economy. We have cut corporation tax; we have boosted enterprise zones; we are investing in apprenticeships; we are investing in housing; we are making sure we put money into infrastructure. But above all, because we have a plan to deal with our deficit, we have the lowest interest rates, whereas he would give us the highest interest rates.

On policing, Her Majesty’s inspectorate of constabulary has actually found that police forces are planning to increase the proportion of police officers and staff working on the front line, so they are taking people out of the back office and putting them on the front line. But let me say this to the right hon. Gentleman: both parties are committed to making cuts to the police budget. He is committed to £1 billion of cuts, but the point is this: we are reforming allowances, we are cutting paperwork, we are freezing pay, we are reforming pensions. He would not do any of those things, so his cuts would be deeper, because he does not have the courage to do the right thing.

[Edward Miliband]

First, on the economy, we are in a double-dip recession—a recession made in Downing street by the two of them—him and the Chancellor. That is the reality. On policing, everybody will have noticed the Prime Minister’s answer. It was about the proportion of front-line officers—that is because he is sacking so many police officers from the back office. But what is actually happening to the number of front-line police officers? We have 5,000 fewer front-line officers. We have fewer 999 responders, fewer neighbourhood police and fewer traffic police. What was his sales pitch—[Interruption.] They were elected on a promise of more police officers—no wonder they are losing the elections.

What was the right hon. Gentleman’s sales pitch just before the election? This is what he said—[Interruption.] They do not want to hear about what he said before the election. He said:

“any Cabinet Minister…who comes to me and says, ‘Here are my plans’ and they involve front-line reductions, they’ll be sent straight back to their Department to go away and think again.”

Is it any wonder that the police are absolutely furious about his broken promise?

[The Prime Minister]

Oh dear, he is having a bad day. Let me try to explain. Whoever was standing here right now would have to cut police budgets—they accept that, we accept that. But if you did not have the courage to deal with allowances, to deal with paperwork and to deal with pay, you would have to make deeper cuts. This is what—

[Ed Balls (Morley and Outwood) (Lab/Co-op)]

Calm down, calm down.

[The Prime Minister]

I am extremely calm. This is what the Leader of the Opposition’s own police spokesman said. He was asked, “Aren’t you accepting the need for a freeze on police pay? That is what Yvette Cooper has said recently.” “No”, he replied. So that is it: they do not accept the freeze on pay, they do not accept the pension reform, they would not do the paperwork cuts; they would be cutting the police more deeply. That is their position—they have absolutely no policy ideas at all.

[Edward Miliband]

I know that the right hon. Gentleman is going to have extensive training before he goes before Leveson, and I have a suggestion: I think it should include anger management. I think it would be very good for him.

It is not just on policing that the right hon. Gentleman has broken his promises. We all remember his promises three years ago to the nurses. He told their conference:

“there will be no top-down reorganisation”.

I notice that he did not go back to the Royal College of Nursing conference this year. Can the Prime Minister tell us how many fewer nurses there are since he came to power?

[The Prime Minister]

The number of clinical staff in the NHS has gone up, and the reason it has gone up is that this Government have put more money into the NHS every year. What is the right hon. Gentleman’s commitment? His commitment is that spending on the NHS is irresponsible. That is his commitment—to cut spending on the NHS. What is actually happening is that we have the lowest number of people waiting for 18 weeks in our NHS, and that is because we have got more doctors, more clinical staff and fewer bureaucrats working in the NHS.

[Edward Miliband]

I am afraid it is back to the bunker with that answer. There are 3,500 fewer nurses since the right hon. Gentleman became Prime Minister. The Health Ministers could not even get the figure right on the radio; they could not even tell us how many nurses in training cannot find jobs. This is all because he has diverted billions of pounds from patient care to a top-down reorganisation that nobody voted for and nobody wanted. I know that he does not like being reminded of his words, but that is because he broke his promise. That is the problem with this Government: they cut taxes for millionaires and cut services for the rest of us. [Interruption.] I know they do not like hearing about it. What did the hon. Member for Cleethorpes (Martin Vickers) say? He said:

“We can’t convince voters that we are ‘on their side’ when we give top-earners a tax cut leaving Mr & Mrs Average reeling”.

That is the truth of this Government. They are unfair and out of touch, and they stand up for the wrong people.

[The Prime Minister]

What this Government have done is delivered a tax cut for every single working person in the country. We froze the council tax for every household in the country. We have taken 2 million people out of tax in our country.

But what is the big decision that the Leader of the Opposition has taken this week? He took the person in charge of his policy review, the right hon. Member for Birmingham, Hodge Hill (Mr Byrne)—the person who said that they had to be serious about the deficit, who said that they had to be serious about welfare reform, the person who told us that they had run out of money—and replaced him with a policy chief who thinks that Labour’s problem is that it is not close enough to the trade unions. That is the Leader of the Opposition’s big decision. I often wonder whether his problem is that he is weak or that he is left-wing—his problem is that he is both.

[Several hon. Members]

rose—

--- Later in debate ---

[The Prime Minister]

I cannot give a direct answer to that, but I can say that the eurozone has to make a choice. If it wants to continue as it is then it has to build a proper firewall and take steps to secure the weakest members of the eurozone, or it will have to work out that it has to go in a different direction. It either has to make up or it is looking at a potential break-up. That is the choice that has to be made, and it cannot long be put off.

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

Q2. If Andy Coulson was not vetted, why did he attend secret briefings, and what documents did he see? Is not this a mess?

[The Prime Minister]

I know the hon. Lady is desperate to find a smoking gun but I tell her that this is absolutely not it. We took a view, on coming to office, that in the past there were too—[Interruption.]

[Mr Speaker]

Order. The question has been put and the answer must be heard.

[The Prime Minister]

We took a view that too many people had been cleared at the highest level and that that had led to some of the problems in terms of Alastair Campbell. Actually, when it came to it, Andy Coulson was in the process of being development-vetted, so there is absolutely no mystery about this at all. The hon. Lady should go and look somewhere else.

[Joseph Johnson (Orpington) (Con)]

Q3. Britain has just posted its first quarterly trade surplus in cars since the 1975 nationalisation of British Leyland by one of the previous Labour Governments. Will the Prime Minister welcome the news that Britain has not only cut its deficit by 25% over the last two years but is once again a net car exporter?

[The Prime Minister]

My hon. Friend makes an extremely good point; the Labour party does not want to hear good news. He is absolutely right that although we have had to take difficult decisions, the deficit has now been reduced by one quarter, so we are on our way to balancing our budget and dealing with our problems. It is encouraging that for the first time since 1976 we have a surplus in motor car manufacturing. That is because of the hard work that people have put in at Nissan, at Honda, at Jaguar Land Rover. It is extremely good news that, although it has taken this long to get back to a trade surplus in cars, Britain is once again a real home for manufacturing.

[Hugh Bayley (York Central) (Lab)]

Q4. Two years ago, during the general election, The Press in York reported the Prime Minister as promising, “We won’t bring in VAT increase”. Has he considered that if he were to honour that pledge and reverse the VAT increase, that would put money in people’s pockets, stimulate the economy and get Britain out of a double-dip recession made in Downing street?

[The Prime Minister]

The reason we had to put up VAT is that we were left the biggest budget deficit anywhere in Europe. It was bigger than Greece’s, bigger than Spain’s, bigger than Portugal’s—the complete mess left by Labour. We now know from reading the former Chancellor’s memoirs that he was going to put up VAT too.

[Caroline Dinenage (Gosport) (Con)]

Q5. You may be aware that this is adult learners week, Mr Speaker, and Gosport’s inspirational Read and Grow charity has just received lottery funds to support the innovative work it is doing with adult literacy. May I invite the Prime Minister and the education team to visit Gosport and see for themselves how this work could be rolled out across the country to benefit people?

[The Prime Minister]

My hon. Friend is absolutely right to raise the issue. It is a tragedy that too many adults in our country do not have proper literacy and reading skills, because of not being taught properly at school. It is vital that we put that right through initiatives such as adult learners week, as she recommends, but we have to do better in our schools in the first place, to make sure that no child is left behind. We know that through the phonics scheme that my right hon. Friend the Secretary of State for Education is leading on that we can teach reading so that no child is left behind, and we must make sure it is available for every child in every school.

[Mr Nigel Dodds (Belfast North) (DUP)]

The Police Service of Northern Ireland has revealed that between 1960 and 2005 it kept body parts and tissue samples in 64 cases of suspicious death, without notifying the families and loved ones of those concerned, many of them in my constituency. Police forces in England have done the same. The Prime Minister and the whole House will sympathise with the families; obviously, shock has been felt throughout Northern Ireland as the families have been visited. Will the Prime Minister join me in demanding the fullest and speediest answers about what happened in those cases so that families can know as soon as possible? Does he have sympathy with the idea of holding an independent review in order to explain how that practice could go on for so long right across the United Kingdom?

[The Prime Minister]

I thank the right hon. Gentleman for his question. I am sure I speak for everyone in the House in expressing sympathy for the families who found out that terrible news about their loved ones; it must be a time of huge anguish for them. I am extremely sorry that the report was leaked, because it was going to be announced properly on Monday, when there could be a proper statement and explanation of what has gone on. I am sure my right hon. Friend the Secretary of State for Northern Ireland will have listened carefully to what the right hon. Gentleman said about the form of inquiry that needs to be held, but let us first publish the information on Monday, so that everyone can see what went wrong and why it happened.

[Stuart Andrew (Pudsey) (Con)]

Q6. From growing up in a council house, I remember well how proud people in my community were to be the first in their family to own their home. Will my right hon. Friend do all he can to give the same opportunity to a new generation of families?

[The Prime Minister]

My hon. Friend makes a really important point. The right to buy their council house was a hugely important social and economic change that gave people a stake in their society, a stake in their community and led to a huge improvement in many housing estates up and down the country. It is sad that under the last Government discounts were allowed to go—[Hon. Members: “What are you going to do?”] We are going to increase the discount right away to £75,000, which in some cases will mean a quadrupling of the available discount. There were years of Labour neglect, but two years of a coalition Government and we can get council house tenants buying their homes again.

[Ian Austin (Dudley North) (Lab)]

Q7. In recent weeks, Britain has gone back into recession, we have had a botched Budget and crazy advice from the Cabinet Office to stockpile petrol at home. Which of those does the Prime Minister think has caused the calamitous collapse in his reputation for competence?

[The Prime Minister]

What the hon. Gentleman should be recognising is that today unemployment has fallen, the claimant count has come down and more people are in work. Yes, we have a difficult economic situation, but if he listened to the Governor of the Bank of England this morning, he will have heard him say that we are coming up with a textbook response to what needs to be done to clear up the mess made by people like the hon. Gentleman.

[Pauline Latham (Mid Derbyshire) (Con)]

Q8. Businesses and home owners in my constituency are having a tough time at the moment, but it would be worse if it were not for consistently low interest rates. Under Labour, our long-term interest rates were the same as Spain’s; this week our rates are under 2%—a record low—while Spain’s are 6%. Will the Prime Minister assure the people of Mid Derbyshire that he will do nothing to put that situation into jeopardy?

[The Prime Minister]

My hon. Friend makes an important point: every increase in interest rates of 1% will add £1,000 to the typical family mortgage. The fact is that today British interest rates are below 2% because the world has confidence that in spite of our economic difficulties we have a plan to deal with our debt and our deficit. We can see from looking around Europe what happens when there is no plan. Interest rates go up, which is bad for business, bad for home owners and bad for the economy. That is what we would get if we listened to the Opposition.

[Tony Lloyd (Manchester Central) (Lab)]

Q9. Many agencies let down the children involved in the Rochdale sex abuse cases, and the whole House must agree that offering our looked-after children a safe and secure place to live is paramount. In that context, given that there are wide concerns about the operation of private children’s homes in the area, will the Prime Minister do two things? Will he look at holding an inquiry into whether they are properly funded and have properly trained staff, and will he make sure that monitoring now works effectively? Clearly it has not done so.

[The Prime Minister]

I am glad the hon. Gentleman raises this issue. It is a truly shocking case and we need to look very carefully at what went wrong. I have asked my right hon. Friend the Secretary of State for Education to do this. He, in turn, has asked the Children’s Commissioner to do a piece of work on it. We need to look at why information was not passed more rapidly from children’s homes to police, and why action was not taken more rapidly. There are obviously issues about inspection, which the hon. Gentleman mentions, but there are also issues about why action was not taken. It is very important that we get to the bottom of a truly, truly dreadful case.

[Jason McCartney (Colne Valley) (Con)]

Q15. Huddersfield Town fans are celebrating today, having won a place in the league 1 play-off final at Wembley. Also winning in my constituency are local manufacturing businesses, which are winning new orders, creating new jobs and creating apprenticeships. Does the Prime Minister agree that the record number of apprenticeships in the UK is a clear sign that this Government are committed to getting Britain working?

[The Prime Minister]

I am grateful to my hon. Friend. Through him, I wish Huddersfield Town all the best, although that might be a prime ministerial curse.

We achieved 457,000 apprenticeship starts last year. We are hoping to achieve over 400,000 more this year. The budget has been increased by more than £1.5 billion. This should deliver 250,000 more apprenticeships across this Parliament than were planned by the Opposition. There is a lot more to do also to make sure that these are high-quality apprenticeships, and we are targeting them on the young people who need help most.

[Simon Danczuk (Rochdale) (Lab)]

Q10. My hon. Friend the Member for Manchester Central (Tony Lloyd) referred to the case and the situation in Rochdale. I want to speak about the girls in that case—the vulnerable girls who went to hell and back through what they experienced. I pay tribute to their bravery in coming forward and standing up to their abusers. They did it to get justice and to stop it happening to others. Vulnerable girls like that do not usually get heard by politicians. They do not get easy access to power or influence. How will the Government respond to these terrible crimes, and will the Prime Minister support a serious case review?

[The Prime Minister]

First, I pay tribute to the hon. Gentleman. He is absolutely right to say that these girls have been brave to come forward and tell their stories, with all the difficulties that that involved. He has talked about people who have come to his constituency surgeries. Of course this is a problem across communities, but there are particular problems in particular communities and he has been brave to say that, because we need to face up to these problems if we are to deal with them. He asks about a review. I will have a look at that. As I said, the Office of the Children’s Commissioner will—hopefully—come up with recommendations within a month, and I understand that Rochdale borough safeguarding children board has conducted a review of child sex exploitation which will be published, but I am prepared to look at the issue of a serious case review as well.

[George Eustice (Camborne and Redruth) (Con)]

Q11. Next year Camborne Science and International academy will become the first ever British school to host the international student science fair, welcoming schools from around the world. Does the Prime Minister agree that if Britain is to prosper in the future we need to lead the world in science and technology, and that we should support the efforts of schools such as Camborne, which are leading the way?

[The Prime Minister]

My hon. Friend is absolutely right to highlight the issue and to highlight the school in his constituency that is clearly doing a good job. If we want to compete in a very competitive global market, we need more science teaching, we need more science graduates, and we need also to encourage those science graduates back into the classroom to train up the next generation of scientists and engineers. The good news is that there has been an 80% increase in the number of students taking science GCSEs since 2010, and my right hon. Friend the Secretary of State for Education has put in place some generous bursary schemes to encourage some of our top maths and science graduates back into the classroom, to make sure that they are teaching the next generation.

[Dan Jarvis (Barnsley Central) (Lab)]

Q12. It is now clear that the Government do not have a comprehensive long-term strategy for care, so does the Prime Minister agree that the sharp increase in home care charges revealed by figures released today is the result of his cut of £1 billion from local council budgets for older people?

[The Prime Minister]

I am afraid I do not think the hon. Gentleman’s figures are right. In the spending review we put £2 billion extra into adult social care, but we have inherited a situation where there is not a clear strategy or pathway for social care. We need to deliver one. That is why there will be a White Paper this year which has to look at all—

[Ian Lucas (Wrexham) (Lab)]

When?

[The Prime Minister]

The hon. Gentleman asks when. The Opposition had 13 years. They just ducked decision after decision. Royal commissions were held. Absolutely nothing was done. Within two years we have done far more than they did in 13.

[Tessa Munt (Wells) (LD)]

Q13. Some 2,000 highly paid public servants have been exposed for avoiding paying their fair share of tax. Does the Prime Minister agree that whenever someone is paid a salary using taxpayers’ money, the Government should insist that they are on the payroll and pay full pay-as-you-earn income tax and national insurance contributions?

[The Prime Minister]

The hon. Lady is right to raise that and I agree with what she says. We have been shocked by the level of this problem and the Treasury is looking at it closely, but the principle she announces—those paid by the public should pay tax properly—is absolutely spot on.

[Mr Peter Hain (Neath) (Lab)]

Will the Prime Minister meet to take forward the Severn barrage project, which is entirely privately financed and could be the biggest source of renewable generation in Europe, generating 5% of Britain’s electricity needs? Does he accept that, with a flat economy in Britain and Europe, this £30 billion of private investment in growth and jobs is a no-brainer?

[The Prime Minister]

I heard the right hon. Gentleman on “Farming Today” waxing eloquent on this project. I think that it has many advantages. A huge amount of renewable energy could be delivered through a barrage of this kind. He knows that there are lots of problems and that the environmental groups have been divided over it, but I am very happy to listen to his views as he takes forward this important piece of work. I think that there are many opportunities in a challenging European economy, as he says, to look at energy connectors and energy co-operation, particularly between England, France and other northern European countries.

[Christopher Pincher (Tamworth) (Con)]

Q14. Both the National Audit Office and the Public Accounts Committee have praised the Work programme for getting off the ground in under a year, which is in stark contrast to the four wasted years it took to get Labour’s programme off the ground. What further help can the Prime Minister give my striving jobseekers in Tamworth, where unemployment figures monthly are falling, to find the work they want?

[The Prime Minister]

My hon. Friend makes an important point, because not only did the Work programme get up and running quickly, but it is already helping 519,000 people. It will help over 3 million in total. The key difference between it and previous programmes is payment by results, so we are paying providers more money for the more difficult people who have been out of work for a long time and have serious challenges in getting back into the workplace. I think that we can use this programme to help not only people who have fallen out of work recently, but people who have totally lost connection with the labour market. Those are the people we want to help most, and the Work programme is a very innovative way of doing that.

[Alan Johnson (Kingston upon Hull West and Hessle) (Lab)]

In April last year the Government announced the successful bids in round 1 of the regional growth fund. Hull was very pleased to be included, because it means 500 jobs and rescuing people from some of the poorest housing conditions in the country. However, 13 months later, not a penny of that regional growth fund money has materialised. Will the Prime Minister tell me why and, if he cannot, will he undertake to find out and ensure that that money flows before the summer recess?

[The Prime Minister]

I will certainly look at the case the right hon. Gentleman raises. With the regional growth fund as a whole, around half of the projects are now under way and serious amounts of money are being disbursed. By way of comparison with the regional development agencies, the overhead costs are £3 million, compared with £240 million, so we are able to put a lot more money into these projects, but I will certainly look at his specific project and write to him shortly.

Oral Answers to Questions

Lord Cameron of Chipping Norton Excerpts

Wednesday 7th March 2012 Commons Chamber

[Nick Boles (Grantham and Stamford) (Con)]

Q1. If he will list his official engagements for Wednesday 7 March.

[The Prime Minister (Mr David Cameron)]

I hope you will permit me, Mr Speaker, before I answer any questions, to make the following announcement. Yesterday, a Warrior armoured fighting vehicle on patrol near the eastern border of Helmand province was struck by an explosion. It is with very great sadness that I must tell the House that six soldiers are missing, believed killed. Five of them are from the 3rd Battalion the Yorkshire Regiment and one is from the 1st Battalion the Duke of Lancaster’s Regiment. Our thoughts are with the family and friends of those brave servicemen. This will be the largest loss of life in a single incident in Afghanistan since 2006. It takes the overall number of casualties that we have suffered in Afghanistan to more than 400. Every death and every injury reminds us of the human cost paid by our armed forces to keep our country safe. I have spoken this morning to the Chief of the Defence Staff, the Chief of the General Staff and the commanding officer of 3rd Battalion the Yorkshire Regiment. They each stressed the commitment of our troops to the mission and to getting the job done. I know that everyone will want a message of support and backing for our troops and their families to go out from this House today.

This morning, I had meetings with ministerial colleagues and others, and in addition to my duties in the House I shall have further such meetings later today.

[Nick Boles]

I echo the Prime Minister’s tribute to the fallen. Their service and their sacrifice humbles us all. With this terrible news in mind, will my right hon. Friend use his meetings next week with President Obama to co-ordinate a prudent draw-down of allied forces in Afghanistan and to ensure that Afghan forces get the training and equipment they need to take over?

[The Prime Minister]

I thank my hon. Friend for his question. Next week is an opportunity to make sure that Britain and America, as the two largest contributors to the international security assistance force mission in Afghanistan, are absolutely in lock-step about the importance of training up the Afghan army, training up the Afghan police and making sure that all NATO partners have a properly co-ordinated process for transition in that country, so that the Afghans can take responsibility for the security of their own country, and we can bring our forces home.

[Edward Miliband (Doncaster North) (Lab)]

I join the Prime Minister in expressing profound sadness at the terrible news of our six soldiers who are missing, feared dead. Today, we are reminded of the ongoing commitment and sacrifice that our service personnel make on our behalf. By putting themselves in harm’s way for our benefit, they demonstrate the utmost service and courage. We owe them and all those who have lost their lives in Afghanistan an immense debt of gratitude, and our thoughts are with their family, friends and colleagues at this terrible time.

At moments like these, does the Prime Minister agree that we must restate clearly the reasons for our mission in Afghanistan? A more stable, self-governing Afghanistan will produce more stable outcomes in that region and ensure greater safety for our citizens here at home.

[The Prime Minister]

I thank the right hon. Gentleman for his words. He is absolutely right. Our mission in Afghanistan remains vital to our national security. We are there to prevent that country from being a safe haven for al-Qaeda, from where they might plan attacks on the UK or our allies. Our task is simple: to equip the Afghan Government and the forces of Afghanistan with the capability and capacity to take care of their own national security without the need for foreign troops on their soil. That is our aim. We are making progress. The Afghan national army stands at 184,000, on target for 195,000 by the end of this year. The Afghan national police, standing at 145,000, are on target for 157,000 at the end of this year. We are making progress. It is absolutely essential for bringing our troops home, but I agree with the right hon. Gentleman: we need to restate clearly why we are there and why it is in our national interest. The commander of the battalion told me today that his men have high morale, they know they are doing an important mission for the future of this country and the future of the world, and they want our support as they go about it.

[Edward Miliband]

I thank the Prime Minister for that answer. He and I also agree that it is essential that we build now for a political settlement in Afghanistan for when our troops are gone. Can he take this moment to update the House on what diplomatic progress is being made on securing the broader and more inclusive political settlement needed for a stable Afghanistan? Does he further agree that the whole international community must up the pace of progress towards that political settlement, to ensure that we do all we can to make concrete progress between now and the departure of our combat troops at the end of 2014?

[The Prime Minister]

We are clearly planning the increase in the army and the police—the physical forces that will take over—but the greatest difference we could make is a stronger political settlement that will ensure that Afghanistan has the chance for real peace, stability, prosperity and security in the future. There are some good signs, in that there are now proper discussions between the Afghan and Pakistan Governments. A clear message is coming out of Afghanistan and Pakistan to all those who are engaged in violence to give up that violence and join a political process. There is strong support for that across the Arab world, particularly in the middle east. We need to give that process every possible support and send a clear message to the Taliban: whether it is our troops or Afghan troops who are there, the Taliban will not win on the battlefield. They never win on the battlefield, and now it is time for a political settlement to give the country a chance for peaceful progress.

[Jack Lopresti (Filton and Bradley Stoke) (Con)]

I, too, echo the Prime Minister’s tribute—as do other Members across the House—to our brave men and women who are asked to make sacrifices on a daily basis to keep our country safe and ensure a peaceful Afghanistan. Will the Prime Minister confirm that, despite those tragic events, ISAF will remain in Afghanistan in one form or another for as long as it takes to complete the mission for a safe, secure and stable Afghanistan, with the Afghan people taking responsibility for their own security?

[The Prime Minister]

We have a clear timetable, which is all about transitioning parts of Afghanistan to Afghan security control, to allow our troops to move into the background and eventually out of the country. In Helmand itself, where we have been for all these years—one of the toughest parts of Afghanistan—Lashkar Gah, the effective capital, is now controlled by Afghan forces. The process is ongoing. I believe it can be properly completed by the end of 2014, so that we leave in a proper and orderly fashion, handing over to Afghan troops. Let us be clear: the relationship between Britain and other countries and Afghanistan will go on. It will be a relationship of military training, of diplomacy, of support, of aid and help for that country. We must learn the lesson of the past, which is what a mistake it was to turn away from Afghanistan.

[Mr Virendra Sharma (Ealing, Southall) (Lab)]

Q2. The Prime Minister’s Business Secretary says of the Government’s action on economic growth:“Our actions are, frankly, rather piecemeal.”Does the Prime Minister agree?

[The Prime Minister]

Obviously, I do not agree with that. What this Government are doing is cutting corporation tax, investing in apprenticeships, building enterprise zones, making sure that right across our economy the rebalancing is taking place that is necessary for sustained economic growth.

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

Q3. My constituents have to wait longer to get a hospital appointment than they would in England, they are five times less likely to get certain cancer drugs than they are in England, and if they get to hospital, they are twice as likely to get an infection as they are in England. Does this prove to the Prime Minister that we cannot trust Labour with the NHS?

[The Prime Minister]

My hon. Friend makes an important point, which is that, if you look at the NHS in Wales, it shows what happens if we do not put in the resources—the money—because the resources are being cut in Wales, and also if we do not reform the NHS to make sure that there is a proper chance for people to get the treatments they need. There is not the cancer drugs fund in Wales, there are much longer waiting times, and there are much longer waiting lists, and that is an example of what happens without the money and without the reform.

[Dame Joan Ruddock (Lewisham, Deptford) (Lab)]

Q4. The Prime Minister is proud of his welfare reforms. [Hon. Members: “Hear, hear.”] Can he look me in the eye and tell me he is proud of the decision to remove all disability benefits from a 10-year-old child who can hardly walk and who cannot toilet herself because she has cerebral palsy? Is he truly proud?

[The Prime Minister]

This Government are not cutting the money that is going into disability benefits. We are replacing disability living allowance with the personal independence payment. As someone who has actually filled out the form for disability allowance and had a child with cerebral palsy, I know how long it takes to fill in that form. We are going to have a proper medical test so that people who are disabled and need that help get it more quickly.

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

Q5. On Friday—[Interruption.]

--- Later in debate ---

[Mr Speaker]

Order. We are grateful to the hon. Gentleman, who should resume his seat. The question is too long.

[The Prime Minister]

My hon. Friend raises an important issue. We are determined to stamp out these so-called legal highs. The Home Office is aware of this particular drug. We now have the drugs early warning system which brings these things to our attention, but as he says, a decision needs swiftly to be made and I will make sure that happens.

[Edward Miliband]

Tim Howes is a delivery driver from Dartford. He is a married father of three and the sole earner in his family. He currently works 20 hours a week. From next month, under the Prime Minister’s proposals, unless he works 24 hours a week he will lose all his working tax credit, some £60 a week. He says:

“I have approached my employer to possibly increase my hours but I have been told there simply aren’t the hours there. I would love to work full-time.”

What is the Prime Minister’s advice to Tim Howes?

[The Prime Minister]

First, let me set the context for this—[Hon. Members: “Answer!”] I will answer the question very directly, but we need to reform the tax credits system because we have a massive budget deficit. When we came to office, tax credits were going to nine out of 10 families, including people right up the income scale, including Members of Parliament. What our changes do, in terms of this specific case, is deal with the basic unfairness that we ask a single parent to work 16 hours before getting access to the tax credit system, so it is only right to say to couples that between them they should work 24 hours—that is, 12 hours each. If that is the case, and they do that, they will be better off.

[Edward Miliband]

I have to say to the Prime Minister that that answer is no use to Mr Howes and his family. He cannot find the extra hours and so will lose his—[Interruption.] The Defence Secretary shouts from a sedentary position, “What about his wife?” Let me tell him that his wife is looking after their three school-age children and cannot find hours that are consistent with that. Tim Howes and 200,000 couples will lose as a result of this. Before the election, the Prime Minister said in the TV debates that for Labour

“to say that actually the changes we’re making would hit low income families is simply not true.”

Why has he broken that promise?

[The Prime Minister]

We have increased the child tax credit that goes to the poorest families in our country. To answer the right hon. Gentleman very directly, when we say to a single parent that they have to work 16 hours to get access to the tax credits system, I do not think that it is unreasonable to ask a couple to work an average of 12 hours each. That is what we are asking. In a way, this relates to a bigger picture. We have a massive budget deficit. If he is not going to support the welfare cap, the housing benefit cap, cuts to legal aid or cuts to tax credits, how on earth would he deal with the deficit?

[Edward Miliband]

In case the Prime Minister did not realise this, in Dartford, where the Howes family live, five people are chasing every vacancy. It is just not good enough for him to say, “Well, they should go out to work.” If they cannot find the work, they will find that they are better off on benefits than in work because of the Prime Minister’s changes, which is something he said he wanted to avoid. It is also about this matter of trust. He made a clear promise, just like he made a clear promise on child benefit. Before the election, he said:

“I’m not going to flannel you. I’m going to give it to you straight. I like the child benefit. I wouldn’t change child benefit. I wouldn’t means-test it. I don’t think that is a good idea.”

We have already established that he has broken his promise to low-income families. Why has he broken his promise to middle-income families, too?

[The Prime Minister]

Here we go: another change the right hon. Gentleman does not support. He seems to think that people on—[Interruption.]

[Mr Speaker]

Order. The question has been asked. The Prime Minister’s answer must be heard.

[The Prime Minister]

Does the right hon. Gentleman really think that people earning £25,000 should pay for his child benefit? I do not agree with that. We have to make savings, so not giving child benefit to the wealthiest 15% of families in our country—of course it is a difficult decision. Life is about difficult decisions. Government is about difficult decisions. It is a pity that he is just not capable of taking one.

[Edward Miliband]

First of all, we are talking about families on £43,000 a year. Secondly, it is no good the Prime Minister saying that he now supports the principle that people on high incomes should not get child benefit, because before the election he supported the opposite principle and said quite clearly to families up and down this country, “I’m not going to take away your child benefit.” In my book there is a very simple word for that: a broken promise—it is a broken promise by this Prime Minister. [Hon. Members: “That’s two.”] They are right: there are two broken promises. The reality is that lower-income families are losing their tax credits and middle-income families are losing their child benefit. Does the Prime Minister understand why people just do not believe him when he says, “We’re all in this together”?

[The Prime Minister]

I think that it is time the right hon. Gentleman listened to his own shadow Chief Secretary, who said that

“we must ensure we pass the test of fiscal credibility. If we don’t get this right, it doesn’t matter what we say about anything else.”

She is absolutely right. Reducing our deficit takes tough decisions. He has opposed every single cut. He has opposed the welfare cap, the housing benefit cap and legal aid cuts. It is no wonder that when people dial up a radio phone-in and eventually work out who he is, they all say the same thing: he is not remotely up to the job.

[Mark Pritchard (The Wrekin) (Con)]

Following—[Interruption.]

[Mark Pritchard]

Following last week’s statement on the use of wild animals in circuses, can the Prime Minister inform the House whether a ban will be introduced in this Parliament and before the next general election?

[The Prime Minister]

I do want to see a ban introduced. It is the overwhelming opinion of Members in this House. We are putting in place a regulatory scheme in the short term, but my right hon. Friend the Environment Secretary made it absolutely clear that it is our intention to introduce a ban in full as well.

[Paul Blomfield (Sheffield Central) (Lab)]

Q6. Today, the Business, Innovation and Skills Committee published a major report on consumer debt. Last November R3 reported that 60% of people were worried about debt and 3.5 million were considering payday loans. In the year since the Government concluded their consultation, no action has been announced. Will the Prime Minister commit to act now to protect vulnerable families, or will he accept that he is simply out of touch with the financial reality facing them as a result of his policies?

[The Prime Minister]

I think, as the last exchange just proved, we are worried about debt. The whole country needs to be worried about debt, and the problem is that the Labour party does not seem to understand that there is a debt problem. There has been a debt problem in our economy, there is also a debt problem for many households, and we do need to make sure that they get help. That is why we are making sure that citizens advice bureaux continue to get help, as they are one of the most important services for helping families in that way.

[Mr Douglas Carswell (Clacton) (Con)]

Q7. The coalition agreement contains many bold and brilliant proposals to give Britain the change that we need: open primaries, a bonfire of the quangos, and radical localism. Sometimes, however, progress has been a little slower than some of us on the Government Benches would have hoped: sometimes the radicalism has been ever so slightly blunted. Is that because of the constraints of coalition, or because of the Whitehall machine?

[The Prime Minister]

It was good to have such a helpful start from my hon. Friend. I think that this Government have done a number of radical things, right across the board, whether it is welfare reform to make sure that it always pays to work, education reform to give greater independence to our schools, or tax reform to give us competitive tax rates. Of course I always want us to go further and faster. I do not blame the Whitehall machine; in the end the politicians must always take responsibility.

[Mr Tom Harris (Glasgow South) (Lab)]

My constituent James Toner was arrested in Goa almost three years ago on drugs charges. He was subsequently released when it turned out that the police officers who arrested him were themselves under investigation for corruption. He has spent the past 22 months in legal limbo, his passport has been confiscated, he cannot travel, he cannot work and he does not even know when his case is going to go to court. Does the Prime Minister agree that justice delayed is justice denied, and will he make sure that a Foreign Office Minister meets me urgently to discuss the case of my constituent?

[The Prime Minister]

I will certainly do that. It is very important that the hon. Gentleman and others feel that they can stand up for their constituents on the other side of the world who are being treated in this way, and that we can take up these cases. The work of Fair Trials International and other organisations is very important in that respect, and I shall make sure that the Foreign Office meets him soon.

[Mr Lee Scott (Ilford North) (Con)]

Q8. Will the Prime Minister join me in congratulating the project that is starting a pilot in my constituency in September, funded by the private sector, the London borough of Redbridge, and various charities, and in congratulating also the co-chairs, Richard and Philippa Mintz, and the inter-faith group on their work to get young people with special needs into employment?

[The Prime Minister]

I will certainly join my hon. Friend in supporting that project. It is important that we help children with special needs through not only their schooling time but that transition after school and into college, and then try to help them to find work. It sounds like this is an excellent project that deserves his support.

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

Is it true:

“The problem is that policy is being run by two public school boys who don’t know what it’s like to go to the supermarket and have to put things back on the shelves because they can’t afford it for their children’s lunchboxes. What’s worse, they don’t care either”?

Those are not my words, but the words of a Conservative Member, the hon. Member for Mid Bedfordshire (Nadine Dorries).

[The Prime Minister]

I would have thought that, coming from the north-east, the hon. Lady should be celebrating the fact that Nissan is going to build its new car in Britain—instead of whatever nonsense it was that she read out.

[Oliver Colvile (Plymouth, Sutton and Devonport) (Con)]

Q9. May I add my personal tributes to our fallen? On Monday, Clare’s law came into being. Would my right hon. Friend be willing to meet me and Sergeant Carney-Haworth to learn at first hand how his team’s groundbreaking initiative in Devonport, Operation Encompass, is helping to make sure that children in my Sutton and Devonport constituency grow up in an area where there is no longer any domestic violence?

[The Prime Minister]

My hon. Friend is absolutely right to raise this constituency issue and to do so this week, when tomorrow we have international women’s day. The move that has been made on Clare’s law is important; it is a breakthrough to give women this information if they seek it. I want us to follow that by looking into a specific offence of stalking. I want us to continue to support the rape crisis centres, as we are under this Government, and to make sure that we act on domestic violence right across the board.

[Mr Brian H. Donohoe (Central Ayrshire) (Lab)]

Q10. When he next expects to visit Central Ayrshire.

[The Prime Minister]

I look forward to visiting Scotland soon.

[Mr Donohoe]

I know that the Prime Minister is coming to my constituency very soon indeed—in fact, later this month to attend his Tory party conference in Troon. However, I want to know whether he agrees that the uncertainty that is being created by the Nats around the separatist idea of a referendum that is being delayed for longer than it should be is leading to uncertainty about inward investment in my constituency and elsewhere. While he is in Troon, will he come with me to see some of the potential for inward investment? That is a promise that he made to me at a meeting a year ago.

[The Prime Minister]

When the hon. Gentleman asked me that question a year ago, I did in fact meet a delegation from his constituency. I agree with every word that he said, and I make him this offer: as I am going to be in Troon, he can make the short trip from his constituency and we can share a platform together to point out the dangers of separatism and the nationalist agenda. Are you up for it?

[Louise Mensch (Corby) (Con)]

Q11. Labour-controlled Corby borough council—[Interruption.]

[Louise Mensch]

Thank you, Mr Speaker.

Labour-controlled Corby borough council is trying to suppress a report into the scandal at the Corby Cube. Twenty-six million pounds of Corby people’s money has been wasted, and now councillors are being threatened with disciplinary action if they blow the whistle. Does the Prime Minister agree that the council should come clean with Corby people?

[The Prime Minister]

I absolutely agree with my hon. Friend, who raises an important point. There are now proposals for total transparency in local government so that expenditure over £500 should be separately documented and so that all the salaries, names, budgets and responsibilities of staff paid over £58,000 should be published, including councillors’ allowances and expenses and all the organisational charts. We want the wind of transparency to go right through local government, Corby included.

[John Cryer (Leyton and Wanstead) (Lab)]

Article 16 of the European fiscal compact says very clearly that it will be incorporated into the European treaty in five years’ time. Will the Prime Minister promise to veto that, or does he not expect to be here in five years’ time?

[The Prime Minister]

The treaty says very clearly that it can be incorporated only with the permission of all 27 member states of the European Union, and our position on that has not changed.

[Nigel Adams (Selby and Ainsty) (Con)]

Q12. Will the Prime Minister join me, along with the thousands of families with missing loved ones, including the family of missing York woman Claudia Lawrence, in supporting the sensible recommendations in the Justice Committee’s report into missing people’s rights and the presumption of death?

[The Prime Minister]

My hon. Friend raises an important issue. I pay tribute to Peter Lawrence and his support for the Missing People campaign. The Justice Committee has produced an important report on this issue. We acknowledge that the current law is complicated. I recognise all the emotional and practical difficulties faced by those whose loved ones are missing. We are going to consider the recommendations very carefully, and perhaps I will write to my hon. Friend when we come up with the answer.

[Sheila Gilmore (Edinburgh East) (Lab)]

Q13. If the Prime Minister manages to persuade his Chancellor to remove some of the anomalies in his child benefit policy to help people earning over £43,000 a year, will he then take action to help the couples on the minimum wage who are set to lose £3,000 from April?

[The Prime Minister]

I think that we dealt with that earlier. Quite apart from the point about the unfairness of a single person having to work 16 hours, we are making a long-term reform with universal credit, which will mean that everyone is always better off in work, no matter how many hours they work. Labour had 13 years to put that in place; we will have it done in 18 months.

[Tim Farron (Westmorland and Lonsdale) (LD)]

On Saturday, 2,000 of us marched through Kendal to present a petition of 11,000 people calling for radiotherapy services at Westmorland general hospital in Kendal. Will my right hon. Friend meet me, the commissioners and cancer campaigners to ensure that we bring cancer treatment to Kendal, so that local lives can be made longer and people’s journeys shorter?

[The Prime Minister]

I know from having visited the hon. Gentleman’s constituency how important the issue of the hospital is. My right hon. Friend the Health Secretary is fully engaged in this issue. Perhaps I can fix a meeting between the hon. Gentleman and my right hon. Friend to ensure that the issue is dealt with.

[Lindsay Roy (Glenrothes) (Lab)]

Q14. The Royal Bank of Scotland recently axed another 300 jobs, mostly in Edinburgh and London. However, the jobs have not gone completely, but have been outsourced to India. The Prime Minister and the Government act on behalf of the biggest shareholder, so when will they stand up to RBS and prevent the needless job losses in the UK?

[The Prime Minister]

We must recognise that the Government put £45 billion into the Royal Bank of Scotland on behalf of the country. That is £2,500 for every working family in the country. The most important thing is that we get that money back. We need RBS to return to health. It has to deal with its bad loans and the trouble that it got into, and it has to grow the rest of its business. We will then be in a position to return to people the money that they put into the bank. That is what matters most.

[Kris Hopkins (Keighley) (Con)]

May I offer my sympathies to the families and friends of the six soldiers who have been killed, five of whom served in 3rd Battalion the Yorkshire Regiment, the Duke of Wellington’s, with which I had the privilege to serve? I recognise and support the vital role that our troops are endeavouring to undertake, but we need to bring them back in 2015. I ask the Prime Minister to ensure that we do everything that we can to support the families of those who have been lost.

[The Prime Minister]

My hon. Friend speaks with considerable experience, because of his service in our armed forces. It is important that we have the date for our troops coming home from Afghanistan, which I set. We will not be there in a combat role and will not be there in anything like the current numbers by the end of 2014. It is also important to ensure that, between now and then, our troops have all the equipment that they need to make them as safe as possible. I pay tribute to the previous Government, who started putting extra money into vehicles in 2006. Since then, we have spent about £2 billion on better-protected vehicles and an additional £160 million on counter-IED equipment. He is right that we need to do more for the families of our armed forces at home. That is what the military covenant process and the Cabinet Committee, which I chaired for the first meeting, are all about.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

Using Applied Language Solutions was supposed to save West Midlands police £750,000 a year, and yet last week we heard that the shortage of translators leaves the police unable to quiz suspects for weeks. Is that the kind of service we can expect when our police forces tender out services to private security companies?

[The Prime Minister]

I do not think that there is anything wrong with the police getting back-office functions carried out by private sector organisations. Indeed, when the shadow policing Minister was asked about that at the Select Committee on Home Affairs, he said that he was quite relaxed about it. I think that that is right. I am delighted that the hon. Lady is considering whether to become a police and crime commissioner. That will be an excellent way of calling the police to account, and I hope that many other hon. Members will consider it as a career change.

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

Will my right hon. Friend do all that he can to support Mayor Boris Johnson in London, who is pleading with the Pru, our biggest insurer, not to leave the City of London because of the attack by the European Union on the competitiveness of the City? I invite my right hon. Friend to block the fiscal union treaty by making an application to the European Court of Justice that it is illegal, until we get the City safeguards that he was demanding in December.

[The Prime Minister]

My hon. Friend is entirely right to raise the case of the Prudential, because it is an example of ill-thought-out EU legislation endangering a great British business, which should have its headquarters here in the UK. I recognise the importance of this matter. We are working extremely hard at the European level and with the Prudential to deal with it. I know that we have the full support of Boris Johnson in doing that.

Oral Answers to Questions

Lord Cameron of Chipping Norton Excerpts

Wednesday 30th November 2011 Commons Chamber

[Nick Smith (Blaenau Gwent) (Lab)]

Q1. If he will list his official engagements for Wednesday 30 November.

[The Prime Minister (Mr David Cameron)]

I am sure the whole House will wish to join me in paying tribute to Rifleman Sheldon Steel from 5th Battalion The Rifles. He was a highly respected soldier who had achieved a great deal and shown much potential during his time with the Army. At this very sad time, our thoughts should be with his family, his friends and his colleagues. His courage and his dedication will never be forgotten by our nation.

This morning I had meetings with ministerial colleagues and others. In addition to my duties in the House, I shall have further such meetings later today.

[Nick Smith]

I join the Prime Minister in paying tribute to that brave serviceman, who gave his life for our country. Our thoughts are with his family at this very difficult time.

Blaenau Gwent, my constituency, has high unemployment but great potential, and it would benefit greatly from £200 million of private sector-led investment in motor sport. Will the Prime Minister provide support for enhanced capital allowances for enterprise zones in Wales, including Blaenau Gwent, as well as in England?

[The Prime Minister]

I thank the hon. Gentleman for that question. First, may I congratulate him and the other 37 Members who have opted to grow additional facial hair in this month of November? It is a very good way—[Interruption.] For those who are capable of doing so, it is a very good way of raising the profile of that important illness, prostate cancer.

We are committed to providing enhanced capital allowances, and discussions are ongoing with devolved Administrations about enhanced capital allowances in their enterprise zones. We will do what we can in Blaenau Gwent, as elsewhere, and I should add that we are electrifying the line to Cardiff and looking for improvements on the M4. All the announcements that my right hon. Friend the Chancellor made yesterday will have consequentials for additional spending on infrastructure in Wales.

[Richard Drax (South Dorset) (Con)]

I am confident that the Prime Minister, like me, will praise the courage and professionalism of the Portland search and rescue helicopter. I am confident also that he will share with me the alarm, anger and disbelief of my constituents and many colleagues with coastal constituencies that it is to be axed. Will he meet me and a small delegation from South Dorset to discuss that urgent matter before a disastrous mistake is made?

[The Prime Minister]

I am very happy to meet my hon. Friend. I know how important it is that we have effective search and rescue facilities off our coast, and I know about the incredibly good work that they do. What the Government are looking at is the best way to deliver those services, including how they should be paid for, and it is important that that work goes ahead.

[Edward Miliband (Doncaster North) (Lab)]

May I join the Prime Minister in paying tribute to Rifleman Sheldon Steel, from 5th Battalion The Rifles? He served with huge commitment and courage, and our deepest condolences are with his family and friends.

In June at Prime Minister’s questions, the Prime Minister praised the head teacher of Vaynor First school in Redditch for refusing to strike. Today, she has closed her school. She says:

“This has been the most difficult decision of my professional life… The difference in the summer was that I had faith in the Government… I have not seen any progress so I have decided…to strike.”

Why does the Prime Minister think that so many decent, hard-working public sector workers, many of whom have never been on strike before, feel that the Government simply are not listening?

[The Prime Minister]

The reason why people are going on strike is that they object to the reforms that we are making to public sector pensions, but I believe that those reforms are absolutely essential. The Labour former Work and Pensions Secretary, Lord Hutton, said that

“it is hard to imagine a better deal than this.”

What I would say, above all, to people who are on strike today is that they are going on strike at a time when negotiations are still under way. The right hon. Gentleman refers to what was said in June. Let me remind him what he said on 30 June:

“These strikes are wrong at a time when negotiations are…going on”.

Why has he changed his mind?

[Edward Miliband]

Mr Speaker, the reason—[Hon. Members: “Answer.”]

--- Later in debate ---

[Edward Miliband]

The reason public sector workers do not think the Prime Minister is listening is that the Government declared negotiations at an end four weeks ago. They said that they had made their final offer. They have not even met the unions for four weeks, since 2 November. What has he gone around saying to people? He has gone around saying that he is privately delighted that the unions have walked into his trap. That is the reality. He has been spoiling for this fight. The reason people have lost faith is that he is not being straight with them. Will he admit that 800,000 low-paid workers on £15,000 a year or less are facing an immediate tax rise of 3% on his pension plan?

[The Prime Minister]

I know that the right hon. Gentleman’s entire party is paid for by the unions, but I must say that what he has just told the House is extraordinary and completely and utterly untrue. The fact is there were meetings with the trade unions yesterday, there will be meetings with them tomorrow and there will be meetings on Friday. The negotiations are under way. Let me repeat what he said in June. He said that it is wrong to strike

“at a time when negotiations are…going on”.

Yet today he backs the strikes. Why? Because he is irresponsible, left-wing and weak.

[Edward Miliband]

The difference is that, unlike the Prime Minister, I am not going to demonise the dinner lady, the cleaner or the nurse, people who earn in a week what the Chancellor pays for his annual skiing holiday—[Interruption.]

[Edward Miliband]

The Prime Minister is the one—he did not deny it—who went around saying that he is privately delighted because the unions have walked into his trap. That is the reality. The truth is that it is not only public sector workers who are paying for the failure of his plan, but private sector workers. Will he confirm that, as a result of the cuts to tax credits announced yesterday, a family on the minimum wage, taking home £200 a week, will lose a week and a half’s wages?

[The Prime Minister]

First, let me be absolutely clear—[Hon. Members: “Answer.”] I will answer the question—

[Mr Speaker]

Order. Let me say again that the Prime Minister’s answer, however long it takes, will be heard. That is the principle of democracy. The Leader of the Opposition and the Prime Minister must be heard.

[The Prime Minister]

Let me be clear that I do not welcome these strikes one bit. I think that we have made a very reasonable and very fair offer to public sector workers, and that is why the former Labour Pensions Secretary said that

“it is hard to imagine a better deal.”

I do not want to see any strikes. I do not want to see schools close. I do not want to see problems at our borders, but this Government have to make responsible decisions.

Let me just remind the right hon. Gentleman and the House of the facts about public sector pensions. Anyone earning less than £15,000 on a full-time equivalent salary will not see any increase in the contributions they have to make. In terms of the reforms we are making, a nurse retiring on a salary of just over £34,000 today would get a pension of £17,000, but in future she would get over £22,000. A teacher retiring on a salary of £37,000 would have got £19,000, but will now get £25,000. These are fair changes. I will tell the House why they are fair. We rejected the idea that we should level down public sector pensions. We think that public sector pensions should be generous, but as people live longer it is only right and fair that they should make greater contributions. What we see today on the Opposition Benches is a party that is in the pocket of the trade union leaders, that has to ask their permission before crossing a picket line and that take the irresponsible side of trade union leaders who have called their people out on strike when negotiations are under way.

Now let me answer his question about the low-paid—[Interruption.]

[Mr Speaker]

Order. I remind the Prime Minister gently that a large number of Members are listed on the Order Paper—Back Benchers, whom I want to hear and he wants to hear. A brief sentence will suffice.

[The Prime Minister]

I will wait for his next trade union-sponsored question, and then give my answer.

[Edward Miliband]

I am proud that millions of hard-working people in this country support the Labour party—better that than millions from Lord Ashcroft.

The problem is that the Prime Minister does not understand his own policy. He does not understand that there are part-time workers earning less than £21,000 who will be hit—800,000 low-paid, part-time workers, 90% of whom are women, will pay more. He denies that, but it is true. That is the reality.

[The Prime Minister]

indicated dissent.

[Edward Miliband]

The Prime Minister sits there shaking his head. He does not understand his own policy, and of course, he could not explain or justify what he did to everyone on low pay with the miserable deal cooked up with the Deputy Prime Minister to cut £1 billion from tax credits in the autumn statement yesterday. They have no explanation for why they are doing that—[Interruption.]

--- Later in debate ---

[Edward Miliband]

Let me try the Prime Minister on another matter. What will unemployment be at the time of the next autumn statement on the Office for Budget Responsibility forecast?

[The Prime Minister]

If we compare the end of this Parliament with the start of this Parliament, the Office for Budget Responsibility figures—let us remember that the OBR is independent, but when the right hon. Gentleman was sitting in the Treasury, the figures were fiddled by Ministers and advisers, and that no longer happens—show that 500,000 more people will be in jobs, 90,000 fewer people will be on the claimant count, and the unemployment rate will be 7.2% instead of 8.1%. That is the OBR’s forecast; it is not fiddled. The OBR is independent; and that is what the figures show.

Let me answer the right hon. Gentleman’s question, as I was not able to do so earlier, about helping the poorest people in our country. It is his party that got rid of the 10p tax—the biggest attack on the working poor. It is this Government who have taken 1.1 million people out of tax, who froze the council tax, cut the petrol tax, introduced free nursery care for two, three and four-year-olds, and are putting up the child tax credit by £390 this year and next. That is a record to be proud of, instead of the right hon. Gentleman’s appalling record of attacking the working poor.

[Edward Miliband]

With child poverty going up as a result of the autumn statement yesterday, the truth is that the Prime Minister could not answer the question because he is too embarrassed by the truth—[Interruption.] The Education Secretary should calm down. He tells children to behave; why does he not behave himself?

The Prime Minister is too embarrassed. There are 2.8 million people out of work according to the forecast of the Office for Budget Responsibility. He is another Conservative Prime Minister for whom unemployment is a price worth paying. Because he is failing on unemployment and growth, he is failing on borrowing. He told the CBI conference last year that, no ifs or buts, by 2015

“we will have balanced the books.”

Will he now admit that on the central test he set himself, he has failed?

[The Prime Minister]

The right hon. Gentleman complains about the level of borrowing, but his answer is to borrow even more. That is the utter illiteracy. Let me tell him what we are doing. Because we have a plan to meet the mandate and to meet the test set out by the Chancellor in his emergency Budget, we have some of the lowest interest rates in Europe. That is right; for every percentage point they went up under Labour, that would be another £1,000 on a family mortgage, another £7 billion out of business and another £21 billion on our national debt. That is what we would get under Labour and that is why it is this Government who will take the country through this storm.

[Edward Miliband]

The Prime Minister is borrowing an extra £158 billion to pay for his economic failure. The truth is that his plan has failed. He refuses to change course and he is making working families pay the price. At the very least, we now know that he will never, ever be able to say again, “We’re all in this together.”

[The Prime Minister]

The leader of the Labour party has taken sides today: he is on the side of the trade union leader who wants strikes and not negotiations and he is on the side of people who want to disrupt our schools, disrupt our borders and disrupt our country. And when it comes to borrowing, he cannot even bring himself to welcome the fact that there are low interest rates.

Let me tell him this. The shadow Chancellor—[Interruption.] Mr Speaker, they are all shouting in unison—[Interruption.] Or should that have been they are all shouting on behalf of Unison? I am not quite clear. Let me remind the House of what the shadow Chancellor said about low interest rates. He said that long-term interest rates are

“the simplest measure of monetary and fiscal policy credibility”.

That is what he said, and that is what this Government are delivering.

We are being tested by these difficult economic times. We will meet that test by getting on top of our debt and getting on top of our deficit. The Leader of the Opposition is being tested too, and he is showing that he is weak, left-wing and irresponsible.

[Jo Swinson (East Dunbartonshire) (LD)]

rose—

[Jo Swinson]

Q2. Thank you, Mr Speaker. I would like to associate myself with the words of condolence from the Prime Minister and Leader of the Opposition.Ten years on from the military intervention, more than 3 million girls in Afghanistan are now in school. With the Bonn conference on Monday, will the Prime Minister send a clear message that the rights of those girls should not be traded away in a false choice between women’s rights and security? The evidence shows that women’s involvement in post-conflict resolution is essential for stability.

[The Prime Minister]

First of all, may I wish my hon. Friend and everyone in Scotland or who is Scottish a very happy St Andrew’s day? She is absolutely right to talk about women’s rights in Afghanistan. All too often, we talk about security without talking about some of the things that that security is making possible. It is the case that whereas in 2001 there were fewer than 1 million children in school in Afghanistan, none of them girls, today there are 6 million children regularly in school, 2 million of whom are girls. All those of us who have been to Afghanistan and met women MPs and other leaders in that country who want to stand up for women’s rights know what an incredible job those people are doing, and we are on their side.

[Lilian Greenwood (Nottingham South) (Lab)]

Q13. According to the Office for Budget Responsibility, half a million more people will be on the dole in 2013 than previously thought. That is a terrible human cost, but how much more will be lost in tax and paid out in benefits as a result of his Chancellor’s economic failure?

[The Prime Minister]

What the OBR shows is that by 2015 we are going to have half a million more people in jobs, fewer people on the claimant count and a lower unemployment rate. But there is a serious point here, because the figures do show a sharp decline in public sector employment. That is shown by the figures. There is a much bigger increase in private sector employment.

What I would say to the Opposition—in fact, to everyone in the House—is that if we want to reduce the amount of unemployment from the public sector, we have to reform welfare, which they oppose, we have to freeze public sector pay, which they oppose, and we have to reform public sector pensions, where they are on the side of the irresponsible trade union leaders.

[Mr Laurence Robertson (Tewkesbury) (Con)]

Q3. Is the Prime Minister aware that in the last financial year, taxpayers paid more than £113 million to trade unions by way of paid staff time and direct grants? In the light of today’s disruption to hospitals and schools, is it not time to review that situation?

[The Prime Minister]

I think it is time. I do not think full-time trade unionists working in the public sector on trade union business rather than serving the public is right, and we will put that to an end. That is absolutely the case, and the evidence today makes that case even stronger.

[Kate Green (Stretford and Urmston) (Lab)]

Q4. Why are the Government freezing working tax credit, which helps the lowest paid workers, including those whose wages are too low for them even to pay tax, to make work pay?

[The Prime Minister]

As the hon. Lady knows, what we are doing with tax credits is that there will be a £255 increase this year, which is the largest ever increase in child tax credit, and there will be a further £135 increase next year—a 5.2% increase. I think that is the right increase in child tax credit. Helping those families, genuinely helping people to get out and stay out of poverty, helping on nursery education and helping to get low paid people out of tax is even more valuable.

[Jacob Rees-Mogg (North East Somerset) (Con)]

As the United Kingdom’s borders are being kept open today by patriotic volunteers, will the Prime Minister consider imitating the robust action of the late US President Ronald Reagan in relation to recalcitrant air traffic controllers?

[The Prime Minister]

I thank all those people, including a number from No. 10 Downing street, who are helping to keep our borders open and to make sure that Heathrow and Gatwick are working properly. Let me report to the House that the evidence so far suggests that about 40% of schools are open; less than a third of the civil service is striking; on our borders, the early signs are that the contingency measures are minimising the impact; we have full cover in terms of ambulance services; and only 18 out of 900 jobcentres have closed. Despite the disappointment of the Labour party, which supports irresponsible and damaging strikes, it looks like something of a damp squib.

[Mark Hendrick (Preston) (Lab/Co-op)]

Q5. May I ask the Prime Minister if he came into politics to sack three quarters of a million civil servants and public sector workers, most of whom are women and most of whom have families?

[The Prime Minister]

I came into politics to try to improve the welfare of people in our country. The fact is that, at the end of this public sector pension reform, those people working in the public sector will have far better pensions than most people in the private sector, who are contributing that money to them. [Interruption.] I know the Leader of the Opposition and the shadow Chancellor are paid to ask questions; they do not have to wave as well. [Interruption.] If they give the money back to the unions, I will calm down.

[Chris Kelly (Dudley South) (Con)]

Will my right hon. Friend join me in condemning the outrageous attack on our embassy in Tehran yesterday and in paying tribute to our diplomatic staff serving in such difficult environments with such distinction?

[The Prime Minister]

I certainly join my hon. Friend in doing that, and I am sure the whole House will join me in praising the incredible devotion of our staff in the foreign and diplomatic service, who often face great dangers, as they did yesterday in Tehran. I chaired a meeting of Cobra yesterday and another one this morning and spoke to our ambassador about the safety of his staff. That should be our No. 1 concern—their safety, their security and making sure those are maintained. After that, we will consider taking some very tough action in response to that completely appalling and disgraceful behaviour by the Iranians.

[Several hon. Members]

rose—

[Mr Graham Allen (Nottingham North) (Lab)]

Q6. What plans he has to change the machinery of Government to facilitate the implementation of early intervention policies; and if he will make a statement.

[The Prime Minister]

I lead a Committee of Cabinet Ministers that looks specifically at family issues, including the importance of early intervention, which is central to what the Government are trying to achieve. We believe that if we change the life chances of the least well off, we have a much better chance of genuinely lifting young people out of poverty and keeping them out of poverty. I take a close interest—as do my right hon. Friends the Secretary of State for Education and the Chancellor of the Exchequer—in the hon. Gentleman’s work, and in the real difference that he has made in prioritising early intervention in our country.

[Mr Allen]

I thank all three party leaders for their consistent support for early intervention and their generous welcome for my two reports. May I ask the Prime Minister to make early intervention in the lives of babies, children and young people a theme for all Departments in the next comprehensive spending review, so that not only will all children be able to make the best of their life chances, but Government and the taxpayer will be able to reduce the massive costs of failure—including educational underachievement, 120,000 dysfunctional families, summers of discontent, and many, many lifetimes wasted on benefits?

[The Prime Minister]

That is a very sensible suggestion. I think that we can look at it in the context of the next spending round, but I do not even want to wait for the next spending round. That is why the family Committee that I lead, and of which the Deputy Prime Minister is a member, is considering how we can make effective action such as intervention in the lives of the 120,000 neediest and most broken families. Government—all the different Departments—spend a huge amount of money on those families, but we are not satisfied that that money has been spent on actually intervening in the lives of those families, and trying to turn them around in order to solve their very real problems. We have a programme for doing that now, but I hope that the hon. Gentleman will continue with his very positive work.

[Andrew Rosindell (Romford) (Con)]

Q7. The Prime Minister will be aware that there remain 16 British overseas territories around the world where the Union flag still flies proudly. Will he pledge that Her Majesty’s Government will protect, defend and cherish the loyal subjects of all those territories?

[The Prime Minister]

I can happily give my hon. Friend that guarantee. Let me add that the overseas territories will remain British for as long as the people of those territories want to maintain their special relationship with us, and that the Union flag will continue to fly over the Governors’ residences. We are increasing our assistance to overseas territories—my hon. Friend will be familiar with what we are doing in St Helena with the airport—and, of course, next year is the anniversary of the liberation of the Falkland Islands, which will be a moment for genuine celebration in all overseas territories.

[Julie Hilling (Bolton West) (Lab)]

Q8. My constituent Jackie contacted me to ask how she is to manage with a 3% tax on her pension, no pay increase until 2013, and rocketing fuel and food bills. How is she to feed her family? Why is the Prime Minister making people like Jackie pay for his Government’s failure?

[The Prime Minister]

The fact is, I am afraid, that the whole country is having to pay for the failure of the last Government to get on top of debt and deficit, but what I would say to the hon. Lady’s constituent is that we are trying to help. That is why we are freezing council tax, cutting petrol tax, taking 1.1 million of the poorest people out of tax altogether, and increasing child tax credit in the way that I described earlier. We will continue to take all those steps, but I would say to the hon. Lady’s constituent—as I would say to all others—that the most dangerous thing that we could do now is lose control of our debts and see interest rates go up. When this Government came to power, our interest rates were at the same level as Italy’s. Today, Italy’s interest rates are 5% higher. If ours were at the same level, we would see higher mortgage costs and businesses going bust, and we would have a real problem in our country. That, however, is the policy of the Labour party.

[Fiona Bruce (Congleton) (Con)]

Q9. What message has the Prime Minister today for the thousands of people who run and work in small businesses in my constituency, who work tremendously hard to keep those businesses and the local economy going, and who, in some cases, can barely afford to make provision for their own pensions?

[The Prime Minister]

The hon. Lady is entirely right. This Government are squarely on the side of people who work hard, play by the rules, and want to do the right things for their families. Today I would say to all those people “Thank you for what you do to contribute to public sector pensions that are far more generous than anything that you are able to afford. For our part, we promise to ensure that public sector pensions remain strong but are affordable.” What is so notable about today is that the Labour party has taken the side of trade union leaders who want to disrupt our country.

[Diana Johnson (Kingston upon Hull North) (Lab)]

Q10. With taxpayers set to pay up to £100 million to BAE Systems to make workers redundant, is the Prime Minister aware that £100 million would pay for five new Hawk planes to be built at Brough for our Red Arrows? Is that not a better use of £100 million?

[The Prime Minister]

I strongly support British Aerospace and all that it does. It is an extraordinarily strong British company. It has the full backing of the British Government and an enormous order book from us in terms of the strategic defence review. It also has massive backing from us in selling Hawk aircraft, Typhoons and Eurofighters all over the world to countries that need them. Clearly at Brough there have been issues and difficulties. That is why we have put in an enterprise zone, and we will do everything we can to help those people and help that company.

[Mr Mark Spencer (Sherwood) (Con)]

Q11. Does the Prime Minister share my belief, and until recently the belief of the Leader of the Opposition, that now is not the time to strike, before negotiations have been completed?

[The Prime Minister]

My hon. Friend makes a very good point. Just in case anyone did not get it the first time, let me say it again:

“These strikes are wrong at a time when negotiations are…going on”.

Negotiations are going on, so the Leader of the Opposition should think the strikes are wrong. He does not think that they are wrong, because he is in the pocket of the trade union leaders.

[Mr Frank Roy (Motherwell and Wishaw) (Lab)]

In every city and village in the country, home helps, carers, nurses and teachers are on strike for the very first time in their lives. These hard-working people—

[Mr Roy]

Well, we hear laughter from the Government Benches, but this is no laughing matter to hard-working families. Are these hard-working people out-of-touch left-wing trade union militants, as demonised by the two parties on the Government Benches, or are they men and women who have said to the Government, “Enough is enough”?

[The Prime Minister]

I know that people feel strongly about this, but we have a responsibility to deliver an affordable public sector pension system. We have rejected the idea of levelling down public sector pensions. What we will deliver on public sector pensions is a generous and fair offer that will give public sector pensioners, unlike others in our country, a defined benefit system. That is why Lord Hutton says that this is an incredibly generous offer. What a pity it is that the Labour party has left reality and will not back that view.

[Andrew Bingham (High Peak) (Con)]

Q12. The Prime Minister will know that I recently held a small businesses event in my constituency, and many of the businesses that attended complained bitterly about the red tape and bureaucracy that they have to jump through to deal with public bodies. What message can he send to these businesses, as we look to them to help rebuild the economy, about getting rid of some of this obstructive bureaucratic nonsense?

[The Prime Minister]

My hon. Friend is absolutely right to raise this subject. It is why we have introduced the red tape challenge, so that all these rules are published on line and businesses and individuals can tell us which ones can be scrapped without harming public safety. At the same time, we have the one-in, one-out rule so that Ministers cannot introduce a new regulation until they have scrapped an existing one. This Government are determined to scrap unnecessary regulation and to help small businesses to employ more people in our country.

[Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)]

At the last spending review, the Prime Minister said that the £110 rise in child tax credits would have an impact on child poverty. Now that he has taken away that rise and is freezing working tax credit, can he say how many more children will be in poverty in the coming year?

[The Prime Minister]

What we are doing in terms of child tax credit is that it is going to be £390 higher than at the time of the last election. That is a £255 increase this year, which is the largest ever increase in child tax credit. We are adding a further £135 next year—an increase of 5.2%. That is what is happening on child tax credit. Let me make this additional point. If the pension is increased, we see child poverty figures go up, under the definition used by the Labour party. I think that it is right that we increase the pension; I do not think that we harm the life chances of children by giving pensioners what we have given, which is a record cash increase in pensions next year.

[Amber Rudd (Hastings and Rye) (Con)]

Q14. May I ask the Prime Minister to ensure that this House remains a free and democratic institution, accountable only to voters? Does he share my indignation that some Members had to ask permission from the GMB to be here today? [Interruption.]

[Mr Speaker]

Order. There is a matter of basic courtesy here. The question from the hon. Lady should be heard. I think that she has completed her question, but it really is a lesson for the future. When questions are being asked, they should be heard with courtesy, and when the answers are given, whatever Members think of them, they should be heard with courtesy.

[The Prime Minister]

It is genuinely baffling to people that somebody who said that they would not back strike action while negotiations were under way has come to the House today to speak on behalf of trade union leaders. I want to say that it is a flashback to Neil Kinnock, but even Kinnock was not as bad as that.

[Owen Smith (Pontypridd) (Lab)]

Does the Prime Minister think it fair that the Chancellor yesterday decided to take just £300 million extra from the banks, and £1.3 billion from working families in this country? Is that a fair distribution?

[The Prime Minister]

What the Chancellor announced yesterday was that we will take £2.5 billion off the banks, not through a one-off bonus tax one year, but every year. It is this Government who are properly putting a tax on the banks, whereas the Labour party, year after year, gave knighthoods to Fred Goodwin, did not regulate the banks or tax them properly, and gave us the biggest boom and the biggest bust, from which we are having to recover.

[Roger Williams (Brecon and Radnorshire) (LD)]

Q15. While I welcome the reduction in corporation tax, which will encourage the businesses affected to expand, 90% of the businesses in my constituency are not incorporated and will not benefit from the tax reduction. Will the Prime Minister ensure that in the spring Budget those businesses are given similar tax incentives to ensure that they grow to their full potential, in the economy and the communities they serve?

[The Prime Minister]

May I again praise the hon. Gentleman for the magnificent specimen lurking underneath his nose? We will not wait until the Budget to help those small businesses: we have already extended the rate relief freeze for small businesses, and the national loan guarantee scheme, which will help small businesses to access credit, will be up and running soon.

[Mr Speaker]

Order. We now come to the statement from the Minister for the Cabinet Office and Paymaster General. I appeal to right hon. and hon. Members leaving the Chamber to do so quickly and quietly, so that the Minister can deliver his statement and the House can listen to and hear it.

Oral Answers to Questions

Lord Cameron of Chipping Norton Excerpts

Wednesday 6th July 2011 Commons Chamber

[Mr Ronnie Campbell (Blyth Valley) (Lab)]

Q1. If he will list his official engagements for Wednesday 6 July.

[The Prime Minister (Mr David Cameron)]

I am sure that the whole House will wish to join me in paying tribute to Highlander Scott McLaren of The Highlanders, 4th Battalion, The Royal Regiment of Scotland. This week I witnessed at first hand the sacrifice of our soldiers. I pay tribute to the bravery and dedication of this particular soldier, who was lost in such tragic circumstances. Our thoughts will rightly be with his family and his friends at this very sad time, but we pay tribute to him and all those like him who serve our country so magnificently in Afghanistan and elsewhere.

This morning I had meetings with ministerial colleagues and others. In addition to my duties in the House, I shall have further such meetings later today.

[Mr Campbell]

I echo the sentiments that the Prime Minister has expressed. As a father whose son is serving in the Royal Marines and doing his duty in Afghanistan, I can tell the House that those in my position dread the knock on the door saying that their son has been lost in action. Our sympathies obviously go to Scott’s father, mother and family at this time.

Is it right that yesterday we gave £10 billion to the bail-out of the banks in Greece, that we gave £7 billion to the bail-out in Ireland, and that we—the British taxpayers—give £100 billion a year to the banks in this country for insurance and other purposes? Why does the Prime Minister not get on his bike, go down to see his friends in the City, and sack a few spivs and speculators and bankers—

[Mr Speaker]

Order. We are grateful to the hon. Gentleman. We have got the gist.

[The Prime Minister]

Let me say first that it is this Government who have imposed a levy on the banks so that they pay more every year than they paid in bankers’ bonus tax under the last Government. As for Greece, I kept us out of a European bail-out, and as for Ireland, its economy is so close and so integrated with ours that it is right for us to give it support. That, I think, is the right approach, but this Government are being tough in ensuring that the banks pay their fair share.

[Mr David Burrowes (Enfield, Southgate) (Con)]

Q2. Severe droughts, conflicts and food prices have combined viciously in the horn of Africa, creating desperate hunger and threatening the lives of millions. Given that aid agencies are short of funds, what are the Government doing to help?

[The Prime Minister]

As ever, the Department for International Development is being extremely effective. It is working very quickly to try to help in this appalling crisis, in which 10 million people face the threat of starvation. That demonstrates once again that we are right to maintain and increase our spending in this area, difficult as the arguments sometimes are. Our difficulties here and elsewhere in Europe are nothing in comparison with what is being experienced by people who face starvation and death unless we help them.

[Edward Miliband (Doncaster North) (Lab)]

May I join the Prime Minister in paying tribute to Highlander Scott McLaren of The Highlanders, 4th Battalion, The Royal Regiment of Scotland? He was a young man who was serving our country, and died in the most horrific circumstances. I am sure the thoughts of the whole House are with his family and friends.

The whole country has been appalled by the disclosures about phone hacking: the 7/7 victims, the parents of Holly Wells and Jessica Chapman, and, of course, the phone of Milly Dowler. That anyone could hack into her phone, listen to her family’s frantic messages and delete them, giving false hope to the parents, is immoral and a disgrace. Given the gravity of what has occurred, will the Prime Minister support the calls for a full, independent public inquiry to take place as soon as practical into the culture and practices of British newspapers?

[The Prime Minister]

Let me be very clear: yes, we do need to have an inquiry—possibly inquiries—into what has happened. We are no longer talking about politicians and celebrities; we are talking about murder victims—potentially terrorist victims—having their phones hacked into. What has taken place is absolutely disgusting, and I think everyone in this House, and indeed this country, will be revolted by what they have heard and seen on their television screens.

Let me make a couple of points. First—people need to know this—a major police investigation is under way. It is one of the biggest police investigations currently under way in our country, and crucially—I hope Opposition Members will listen to this—it does not involve police officers who were involved in the original investigation that so clearly did not get to the truth. It is important that we have inquiries: inquiries that are public; inquiries that are independent; and inquiries that have public confidence.

It seems to me that there are two vital issues that we need to look into. The first is the original police inquiry and why that did not get to the bottom of what has happened, and the second is the behaviour of individual people and individual media organisations and, as the right hon. Gentleman says, a wider look into media practices and ethics in this country. Clearly, as he says, we cannot start that sort of inquiry immediately because we must not jeopardise the police investigation, but it may be possible to start some of that work earlier. I am very happy to discuss this with him, with other party leaders, and with the Attorney-General and the Cabinet Secretary, to make sure that we get this right and lessons are learned from what has become a disgraceful episode.

[Edward Miliband]

Let me say to the Prime Minister that I am encouraged that he does now recognise the need for a full public inquiry into what happened. He is right to say that it can be fully completed only after the police investigation has taken its course, but, as he also said, that may take some years. It is possible, as I think he implied, for the Prime Minister to start the process now, so may I make some suggestions in that context? He should immediately appoint a senior figure, potentially a judge, to lead this inquiry, make it clear that it will have the power to call witnesses under oath, and establish clear terms of reference covering a number of key issues: the culture and practices of the industry; the nature of regulation, which is absolutely crucial; and the relationship between the police and the media. I wonder whether he can respond on those points.

[The Prime Minister]

I want to respond positively, and let me do so. First, on the two issues I mentioned—the conduct of the earlier police inquiry and the broader lessons about ethics in the media—I do not think it is possible to start any form of investigation into the former until the police investigation is completed, because I think there would be a danger of jeopardising the current police inquiry. Responding positively to what the right hon. Gentleman said, I do think it may be possible to make a start on other elements, and, as I have said, I do not want us to rush this decision; I want us to get it right, having discussed it with other party leaders, the Attorney-General and the Cabinet Secretary. All too often, these sorts of inquiries can be set up too quickly without thinking through what actually needs to be done.

[Edward Miliband]

I think the Prime Minister is implying that this can start moving now, and I think it is very important that it does so; just because we cannot do everything does not mean we cannot do anything. It is very important that we act. A year ago to the day, the Prime Minister appointed the Gibson inquiry to look into the treatment of detainees by the intelligence services, with criminal cases still pending.

Let me ask the Prime Minister about what happens in the meantime, pending this public inquiry. We have consistently said that the BSkyB bid should be referred to the Competition Commission and not dealt with in the way the Culture Secretary has done. The Prime Minister must realise that the public will react with disbelief if next week the decision is taken to go ahead with this deal at a time when News International is subject to a major criminal investigation and we do not yet know who charges will be laid against. Does the Prime Minister agree that the BSkyB bid should now be referred to the Competition Commission, to provide the breathing space that is required?

[The Prime Minister]

First, let me answer the right hon. Gentleman’s point about Gibson, because this is a good and fair point. We established the Gibson inquiry but it has not been able to make much progress until criminal proceedings have been brought to an end. There is a good reason for this; clearly you do not want to jeopardise a police operation, and you do so if you start questioning witnesses through a public inquiry process at the same time as they are being questioned through a police process. That is the reason for doing this, but, believe me, I want us to get on with this issue, and the faster we can set up other elements of an inquiry, the happier I will be.

On the issue of BSkyB, what we have done is follow, absolutely to the letter, the correct legal processes. That is what the Government have to do. My right hon. Friend the Secretary of State for Culture, Olympics, Media and Sport has a quasi-judicial role and he has to follow that. I note that the leader of the Labour party said yesterday that the issue of competition and plurality is “a separate issue” from the very important issue we are discussing today. What I would say is that these processes must be followed properly, including by Ofcom, and it is Ofcom that has the duty to make a recommendation about a “fit and proper person”. Those are the right processes; this Government will behave in a proper way.

[Edward Miliband]

I am afraid that that answer was out of touch with millions of people up and down this country. The public will not accept the idea that, with this scandal engulfing the News of the World and News International, the Government should, in the coming days be making a decision outside the normal processes, for them to take control of one of the biggest media organisations in the country. I know that this is difficult for the Prime Minister, but I strongly urge him to think again and send this decision to the proper authorities—the Competition Commission. As I say, this would provide breathing space for legitimacy and for the proper decisions to be made.

[The Prime Minister]

I would say to the right hon. Gentleman that the decision making has been through the proper processes, that it is right that the Government act legally in every way and that that is what they have done. One of these is an issue about morality and ethics, and a police investigation that needs to be carried out in the proper way—they have total independence and must do that. The other is an issue about plurality and competition, where we have to act under the law. Those are the words he used yesterday and, in just 24 hours, he has done a U-turn in order to try to look good in the Commons.

[Edward Miliband]

This is not the time for technicalities or low blows. We have said consistently, throughout this process, that this bid should be referred to the Competition Commission—that is the right way forward. The Prime Minister, instead of engaging in technicalities, should speak for the country on this issue, because this is what people want him to do. I hope that he will go off from this Question Time and think again, because it is in the interests of the media industry and the British public that this is properly referred to the Competition Commission in the way that all other bids are dealt with.

What we also know, as well as that we need a public inquiry and that we need the BSkyB bid referred to the Competition Commission, is that these were not the actions of a rogue individual or a rogue reporter, but part of a wider, systematic pattern of abuses. The public see a major news organisation in this country where no one appears prepared to take responsibility for what happens. Nobody is denying that Milly Dowler’s phone was hacked and nobody is denying that it happened on the watch of the current chief executive of News International, who was editor of the newspaper at the time. Will the Prime Minister join me—if he believes in people taking responsibility—in saying that she should take responsibility and consider her position?

[The Prime Minister]

First, let me deal with the issue of technicalities. I have to say to the right hon. Gentleman that when you are dealing with the law, you have to look at the technicalities because there is something called due process that you have to follow. That is necessary for any Government and I am sure that he understands that. As for News International, everyone at News International must ask themselves some pretty searching questions and everyone at News International is subject to one of the largest police investigations under way in this country. I think that we should let the police do their work. They must follow the evidence wherever it leads and if they find people guilty of wrongdoing, they should have no hesitation in ensuring that they are prosecuted.

[Edward Miliband]

I do not know from that answer whether the Prime Minister says that the chief executive of News International should stand down or not. I am clear: she should take responsibility and stand down. These events show a systematic set of abuses that demonstrates the use of power without responsibility in our country and it is in the interests of our democracy and the public that such issues are sorted out. With the biggest press scandal in modern times getting worse by the day, I am afraid the Prime Minister has not shown the necessary leadership today. He has not shown the necessary leadership on BSkyB or on News International. Is it not the case that if the public are to have confidence in him, he must do the thing that is most difficult and accept that he made a catastrophic judgment in bringing Andy Coulson into the heart of his Downing street machine? [Interruption.]

[The Prime Minister]

What people—[Interruption.]

[Mr Speaker]

Order. I apologise for interrupting the Prime Minister, but the Prime Minister should not have to shout to be heard and neither, for that matter, should the Leader of the Opposition. It is thoroughly disorderly and the Prime Minister will now be heard.

[The Prime Minister]

Thank you, Mr Speaker. I take full responsibility for everyone I employ and everyone I appoint and I take responsibility for everything my Government do. What this Government are doing is making sure—the public and I feel appalled by what has happened, and the fact that murder victims and terrorist victims have had their phones hacked is quite disgraceful. That is why it is important that there is a full police investigation with all the powers the police need. That is why it is important that we have those inquiries to get to the bottom of what went wrong and the lessons that need to be learned. That is why we also need to inquire as to how we can improve the ethics and morals of the press in this country and ensure that they improve for the future. That is what needs to be done, that is what the Government are doing and we do not need to take lectures from the right hon. Gentleman about it.

[Nicky Morgan (Loughborough) (Con)]

Q3. Year 9 pupils at Limehurst high school in my constituency have joined hundreds of other pupils to work on the “Send my Sister to School” campaign. Will the Prime Minister add his support to this cause and should not this campaign remind us that good education, here or overseas, transforms children’s lives and their life chances?

[The Prime Minister]

I am delighted to welcome the campaign that my hon. Friend mentions and her personal support for it. The fact is that across our world 39 million girls are out of school and even if they are in school, the gender gaps we still see are appalling. We in the UK, through our aid budget, are securing schooling for 11 million children by 2015. That is more than we educate in the UK, but we will be able to do it at 2.5% of the cost. This is a good investment for Britain and for British taxpayers that will ensure that we reduce inequality in our world.

[Mr Gareth Thomas (Harrow West) (Lab/Co-op)]

Q4. Will the Prime Minister explain whether he thinks that the cost of his NHS reforms, which are set to rise even further—as we now know thanks to the revelation that a new super-quango will be created in the NHS—might be partly responsible for the funding squeeze affecting health services in Harrow? That has put at particular risk services at the popular Alexandra avenue polyclinic in my constituency.

[The Prime Minister]

What we have seen since this Government have taken office is more than 2,000 more doctors but 4,000 fewer managers. We are cutting bureaucracy by a third—[Interruption.] I know they do not like to hear it, but if we had followed their plans and cut NHS spending, the number of doctors, nurses and operations would be going down. Just this morning, we have seen the figures for the number of diagnostic tests in the UK going up. That is because of the investment that is going in under this Government.

[Mike Freer (Finchley and Golders Green) (Con)]

Q6. The Prime Minister will be aware of the news this morning that Portugal’s debt has been downgraded to junk status. Does he not agree that it is a warning to every Member of this House that we cannot put off difficult decisions and that the only plan B is bankruptcy?

[The Prime Minister]

My hon. Friend is entirely right: plan B stands for bankruptcy. We can see what happens if Governments do not get a grip of their debt and their deficit. That is what this Government are doing, but the Labour party has learnt nothing.

[Karl Turner (Kingston upon Hull East) (Lab)]

Q7. Does the Prime Minister agree that the maximum sentence for the offence of dangerous driving does not properly reflect the potential harm caused to victims, some of whom are left paralysed and brain-damaged? Will he support me and Labour Front Benchers in moves to increase the maximum sentence to seven years?

[The Prime Minister]

I know that the hon. Gentleman speaks with great personal knowledge about this not just because of a constituency case that he wrote to me about but because of his work as a barrister before he came to this place. I do believe there is a problem when there is a high sentence, rightly, for causing death by dangerous driving, but only this two-year sentence in cases such as the one he brought to my attention in which someone was damaged permanently for life, and yet the maximum sentence was two years. In our Sentencing (Reform) Bill we are looking at this issue and we hope to make some progress.

[David Morris (Morecambe and Lunesdale) (Con)]

Does the Prime Minister agree with me that the alleged bail-out mentioned by the Opposition of £10 billion is not that and that if we are not in the IMF we will not be a global player? Does he also agree that the Opposition need reminding that in the 1970s the IMF bailed out their Government?

[Mr Speaker]

I know that the Prime Minister will want to deal with the first part of the question, but not the second part because it was disorderly.

[The Prime Minister]

I absolutely agree with what my hon. Friend said. It was remarkable yesterday that the Labour party put itself in the position of opposing our involvement in the IMF. Britain is a serious global economy and we should take responsibility for serious global issues, including through the IMF.

[David Simpson (Upper Bann) (DUP)]

Q8. Does the Prime Minister agree that details of all the weapons and explosives decommissioned in Northern Ireland should be made public as promised? Will he agree to have negotiations with the Irish Government to move forward to the Americans to see that that happens?

[The Prime Minister]

The point is that the Independent International Commission on Decommissioning did not provide us with an inventory. It was an independent body and that was a decision for it to take—difficult as I know that is. It stated:

“We would not wish, inadvertently, to discourage future decommissioning events by groups that are actively engaged today, nor to deter groups that have decommissioned their arms from handing over any arms that may subsequently come to light”.

This is difficult and we are all having to do difficult things, in Northern Ireland as elsewhere in the world, in order to bring conflict to an end and keep conflict at an end. That is what the independent commission’s report was doing.

[Mr Adrian Sanders (Torbay) (LD)]

Is not the real issue about delaying an inquiry that the public have little confidence in the Metropolitan police where investigations concerning News International are concerned? May I remind the Prime Minister of the question I asked him on 27 April about whether he would have

“a full judicial inquiry and, in particular, look at the relationship between the Metropolitan police and News International?”—[Official Report, 27 April 2011; Vol. 527, c. 168.]

[The Prime Minister]

Clearly, this is a very important issue. My right hon. Friend the Home Secretary has discussed it with the Metropolitan Police Commissioner this morning and they want to continue with the investigation that is under way. But let me try to reassure the House and the hon. Gentleman about this because even before we get to the point about independent and public inquiries, what the public need to know is that the police are going to go about their job properly in this investigation, so they do need to know that this is an investigation completely separate from the previous investigation. As it stands today, it is one of the largest police investigations going on anywhere in our country.

[Teresa Pearce (Erith and Thamesmead) (Lab)]

Q9. Victims of knife crime in London have increased by more than 8% in the past three months. On the streets of London we have children carrying knives and other children afraid of the journey to and from school. Last Friday, on a busy shopping parade, a 16-year-old constituent of mine was stabbed to death. Two children have been arrested in connection with that. What will the Prime Minister do to ensure that the Mayor of London gets a grip on this problem, which was one of both the Mayor’s and the Prime Minister’s election promises?

[The Prime Minister]

The case that the hon. Lady raises is an absolutely tragic one and there are still too many victims of knife crime, particularly among young people in our cities and particularly in London. What we are doing is creating a new offence with a mandatory prison sentence to send a very clear message to those who carry knives. The offence will apply to those with a knife who threaten and endanger others in a public place. That will send a clear message to those who possess a knife that if they threaten anyone, they will go to jail.

[Mr Christopher Chope (Christchurch) (Con)]

Does my right hon. Friend agree that those who pay back early their student loans are doing the right thing and should be encouraged? If so, how is that consistent with the Government’s policy, which is apparently one of discouraging people from paying back early, and indeed of penalising them for early repayment of student loans?

[The Prime Minister]

I urge my hon. Friend to look carefully at the detail of our proposals. We want a progressive system in which people who earn more pay back more, which is why nobody pays anything until they earn £21,000, and people do not start to pay back in full until they earn £35,000. We propose that people who pay back, say, £3,000 a year in earnings should not be discouraged, because in many ways that is the right thing to do.

[Toby Perkins (Chesterfield) (Lab)]

Q10. In opposition, the Prime Minister made it clear that Hizb ut-Tahrir should be banned, but last week he fell back on exactly the same explanations that he refused to accept when they were given to him by the previous Prime Minister. What has changed?

[The Prime Minister]

We have banned the Tehrik-e-Taliban—we have taken action. As my right hon. Friend the Lord Chancellor will hastily testify, it is endlessly frustrating that we are subject to so many legal requirements, but I am afraid that we have to be a Government under the law. [Interruption.]

[Mr Speaker]

Order. The House will want to hear Mr Robert Halfon.

[Robert Halfon (Harlow) (Con)]

Q11. Thank you, Mr Speaker. Given that the Olympics and the diamond jubilee will take place next year, is the Prime Minister aware that immigration and special branch officers at Stansted airport are concerned that the common travel area channel in its current form allows illegal migrants, Islamists and terrorists into the country without their passports being checked? Will he take urgent steps to close that loophole immediately?

[The Prime Minister]

My hon. Friend makes an important point. Passport-free travel between the UK, the Crown dependencies and the Republic of Ireland has been in place for many years, and it offers real economic and social benefits. I accept that those routes can be open to abuse, and we are determined to resolve that. The UK Border Agency is working closely with Ireland and others to make sure that that happens, but we want to try to do so without disadvantaging people who have been able to take advantage of that common travel area up to now.

[Mrs Mary Glindon (North Tyneside) (Lab)]

Q12. The Secretary of State for Communities and Local Government and the Secretary of State for Work and Pensions have both said that British employers should employ British workers, so will the Prime Minister stop the Department for Work and Pensions offshoring existing jobs in North Tyneside to Bangalore?

[The Prime Minister]

Of course I will look closely at the case that the hon. Lady makes, but every Government—[Interruption.]

[Mr Speaker]

Order. I want to hear the Prime Minister’s answer, and so does the House.

[The Prime Minister]

We need to make sure that our welfare reforms encourage those people who sit on welfare and who could work actually to go out to work. Under the Labour Government, yes, we had economic growth, but there were 5 million working-age people living on benefits. That is not good enough, and we are going to change it.

[Andrew Bingham (High Peak) (Con)]

Q13. Does the Prime Minister agree that birthing centres in rural areas provide a valuable and irreplaceable service to the local community, and every effort should be made to retain them—a message that hundreds of my constituents and I are sending to Derbyshire County NHS as it considers the future of the Corbar birthing centre in my constituency of High Peak?

[The Prime Minister]

I absolutely agree with my hon. Friend. We want to see maternity networks so that mums can make a choice about where they give birth, whether in a community setting, midwife-led, or whether in a district general hospital with all the paraphernalia of consultants and the rest of it. It should be a choice made by them with their GP and others on what is right for their needs.

[Margaret Beckett (Derby South) (Lab)]

Is the Prime Minister aware that yesterday, when Bombardier had to announce the redundancy, among others, of skilled engineers and designers, the company made public for the first time the fact that it had offered to establish a new academy in this country for the design and manufacture of cars for the next generation of high-speed trains for the UK and across the world—a global centre of excellence, providing more jobs and jobs with even higher skills. He will not have had time to familiarise himself with the details, but will he undertake to look into that with care to give substance to the commitment that he made in my constituency to British manufacturers?

[The Prime Minister]

I will look carefully at what the right hon. Lady has said about this issue. I want to see more British jobs in manufacturing as, indeed, we are seeing across the country. In the case of the Bombardier train contract, the procurement process was designed and initiated by the Government of whom she was a member. We are bound by the criteria that they set out, so we have to continue with the decision that has been made according to those criteria. Separately, we are setting out to ask what more we can do under the rules to make sure that we boost manufacturing and not have situations like this in future.

[Bob Blackman (Harrow East) (Con)]

Q14. Twelve days ago a young constituent of mine was the victim of a vicious knife attack. Last weekend another 16-year-old young man was also the victim of a knife attack. Will my right hon. Friend join me in condemning this upsurge in gang-related violence and confirm that those who carry knives will face a custodial sentence if apprehended?

[The Prime Minister]

As I said to the hon. Member for Erith and Thamesmead (Teresa Pearce), it is important that we send a clear message about this. We are doing that with the new offence which carries a mandatory sentence. That is a signal to anyone who is contemplating carrying a knife, but we should be frank with ourselves in the House and in the country that purely looking at the issue from a criminal justice perspective is not the answer. We have to ask ourselves why so many young children are joining gangs, and why our families and communities are not doing more to keep them close and prevent the carrying of knives. That is something that runs right across Government and across our society as well.

[Mr Ben Bradshaw (Exeter) (Lab)]

It is simply not the case, as the Prime Minister claimed earlier, that the Government have followed the normal process in relation to the News Corp takeover of BSkyB. Why does he believe that the assurances that News Corp executives have given are any more credible than the assurances they gave over phone hacking?

[The Prime Minister]

The point is that we have followed the correct legal processes. If you do not follow the correct legal processes, you will be judicially reviewed, and all the decisions that you would like to make from a political point of view will be struck down in the courts. You would look pretty for a day, but useless for a week. [Interruption.]

[Mr Speaker]

Order. If the House can overcome its collective mirth, it will give a hearing to Mr Ian Swales.

[Ian Swales (Redcar) (LD)]

Last Friday I visited Grangetown school in my constituency, which is the 17th most deprived primary school in the country. Will the Prime Minister join me in congratulating the school and community on their work to convert an area of demolished houses into a school playing field, and will he ensure that the Government continue their pupil premium policy to support the school’s excellent work?

[The Prime Minister]

I congratulate the hon. Gentleman on the support that he is showing to his local primary schools. I believe that the pupil premium, which will pump billions extra into education, particularly for the most deprived children in the most deprived parts of our country—[Interruption.] It will make a huge difference to our schools. For all the noise from the Opposition, they had 13 years to introduce a pupil premium. What did we get? Absolutely nothing.

Oral Answers to Questions

Lord Cameron of Chipping Norton Excerpts

Wednesday 23rd March 2011 Commons Chamber

[The Prime Minister (Mr David Cameron)]

I am sure that the whole House will wish to join me in paying tribute to Private Daniel Prior, from 2nd Battalion the Parachute Regiment, who died on Friday at Queen Elizabeth hospital in Birmingham having been wounded in Afghanistan on Wednesday. Tragically, Private Prior had just become a father and our deepest condolences should be with his family and friends, especially his wife and his newborn son. We must make sure that he grows up in a country where everyone honours the memory of his father and what all our armed forces stand for.

This morning, I had meetings with ministerial colleagues and others, and in addition to my duties in the House, I shall have further such meetings later today.

[John Woodcock]

I thank the Prime Minister for that answer and associate myself, and all on the Opposition side of the House, with his moving tribute to Private Daniel Prior.

The Prime Minister has taken the right decisions to extend the life of the Nimrods and HMS Cumberland so that our armed forces remain equipped to protect in this conflict. He knows the uncertainty we now face, so will he, in due course, extend that rethink of our defence capabilities?

[The Prime Minister]

Obviously we will look very closely at all the lessons we should learn from what we are engaged in: diplomatically; politically; and in terms of both foreign policy and military equipment. What I would say, though, is that the whole predication of the strategic defence and security review was that we should be able to deploy at speed anywhere in the world and have very flexible armed forces, with particular emphasis on transport and on things such as special forces. We think that we did anticipate the sorts of things we are doing now, but if there are further lessons to learn, of course we should learn them.

[Jo Swinson (East Dunbartonshire) (LD)]

Q2. Our hearts go out to the people of Japan as we watch their horror unfold and see warnings today about heightened radiation in Tokyo’s water supply. It is not just earthquakes and tsunamis that can threaten the cooling systems of nuclear reactors, so does the Prime Minister agree that what has happened at Fukushima will have consequences for the new nuclear power stations proposed for the UK?

[The Prime Minister]

I am sure that the whole House will want to join the hon. Lady in sending our condolences to people in Japan and to express our admiration for their incredible bravery and resilience in dealing with this immense crisis. Of course we must learn any lessons that need to be learned about nuclear power, which is why the head of the nuclear safety inspectorate is looking at this issue. As I have said before, the power stations we have in Britain are of a different type from those in Japan. We are not planning to build any like those, and we are not in an earthquake zone or a zone subject to tsunamis, but of course we have always got to test against all eventualities. I am sure that there is further testing we can do on nuclear power.

Japan is doing a good job in dealing with this problem and the signs from the nuclear station are a little better than they were a few days ago, but it is certainly not out of the danger zone. What we should do is make sure that we give the correct advice to all British citizens in Tokyo—that is what we have done and what we will continue to do.

[Edward Miliband (Doncaster North) (Lab)]

I join the Prime Minister in paying tribute to Private Daniel Prior. He demonstrated outstanding bravery in the line of duty and our thoughts are with his wife and young son and all his family and friends.

I am sure that the whole House will also want to think of our armed forces personnel now in action in the military operation in Libya and to pay tribute to the outstanding work they are doing. Following the overwhelming vote in the House on Monday, will the Prime Minister update the House on the progress of our military operation and the actions of British forces?

[The Prime Minister]

I thank the right hon. Gentleman for what he says and for his speech in that debate on Monday, which I thought was extremely powerful. To update the House on the military operations, a no-fly zone is now in place over Libya and 11 nations are contributing more than 150 aircraft. As we discussed on Monday, there has been an early and good effect as regime forces have had to retreat from Benghazi, but there is clearly great concern about what the regime is doing in Misrata. Any idea that the second ceasefire was any more meaningful than the first is, we can see, complete nonsense. We made good progress in the no-fly zone and good progress in turning some of the forces back and protecting civilians. Everything is clearly still in the early stages, however, and a lot more remains to be done.

[Edward Miliband]

I thank the Prime Minister for that answer and for what he said about the debate on Monday. We support UN resolution 1973 to protect the people of Libya. The support of the Arab League was a key factor in securing the UN resolution. Will the Prime Minister update the House on the military contribution that Arab states will make to the operation and what conversations he has had with Arab leaders about their continued role in the enforcement of the resolution and the plan of action?

[The Prime Minister]

I can do that. First, the Arab League met again yesterday and reinforced its view that a no-fly zone is right and that it supports UN Security Council resolution 1973. In terms of concrete assets, I can confirm that yesterday the Qataris deployed the first of their contribution—Mirage aircraft and other support aircraft—and we will get logistic contributions from countries such as Kuwait and Jordan. I hope that further support will be forthcoming but I would like to be clear that because we had to act so quickly on Saturday it was not possible to bring forward as much Arab support as might have been welcomed by, I think, everybody in this House. There is clear support from the secretary-general of those Arab nations. I also had a meeting with the Saudi Foreign Minister yesterday and I believe that support in the Arab world—not just among Arab leaders but among Arab people—for saving lives in Libya is very strong.

[Edward Miliband]

Let me emphasise something that the Prime Minister mentioned on Monday, which is the importance of the contribution of Arab countries to the military operation. He also said that there would be a regular and more formal process with the Arab League and others. It seems to me very important that that process takes place. Let me ask the Prime Minister one other thing about our action. Will he clarify the Government’s position on the targeting of Colonel Gaddafi? It is important that we stick to the terms of the UN resolution as we seek to maintain the coalition we have built on that resolution.

[The Prime Minister]

I am grateful for that question and for the chance to set this out clearly to the House. All our targets must be selected to be absolutely in line with UN Security Council resolution 1973. That allows us to take “all necessary measures” to enforce a no-fly zone and to put it in place as safely as possible as well as to take action to protect civilian life. All targets should be in line with that but I do not propose to give a running commentary on targets or, frankly, to say anything beyond that.

[Mr David Amess (Southend West) (Con)]

Q3. As my right hon. Friend struggles to sort out the mess left behind by the previous rotten Labour Government, will he take this opportunity to unite the House on health matters by praising the work of Marie Curie nurses, highlighting the dangers of prostate cancer and supporting low salt week?

[The Prime Minister]

I yield to no one in blaming the last Government for all sorts of ills, but I think even I would probably draw the line at blaming them for the level of salt in food—[Hon. Members: “Oh, go on.”] Well, I suspect that the previous Prime Minister probably put salt in his porridge, but we will have to leave it there.

My hon. Friend mentions a very important charity, Marie Curie Cancer Care, and the work it does to help people, particularly when they are suffering often incurable conditions; it should be praised by everyone in this House. The whole point of what we want to do through our health reforms is to involve in an even greater way such great charities, which do so much to help people across our country.

[Mrs Mary Glindon (North Tyneside) (Lab)]

North Tyneside’s Tory, elected mayor has spoken of her intention to become the council’s chief executive under new government powers. Does the Prime Minister think that the mayor, who was elected on a political ticket under the alternative vote and has no proven professional experience for such an apolitical role, should go back to the electorate in the true spirit of localism and get their opinion on this issue?

[The Prime Minister]

I thank the hon. Lady for reminding everyone that North Tyneside has an excellent Conservative mayor who is doing a great job. It will be a matter for her and the people and the council of North Tyneside to work out what a fantastic job she can do in future.

[Gavin Barwell (Croydon Central) (Con)]

Q4. Croydon town centre is just 15 minutes from central London by rail, but rateable values are 60% lower. Does my right hon. Friend agree that there is huge potential to save public money by relocating part of the Government estate from the most expensive real estate in the country in SW1?

[Bob Russell (Colchester) (LD)]

Let’s start with IPSA.

[The Prime Minister]

I just heard a suggestion from my hon. Friend that the Independent Parliamentary Standards Authority should be based in Croydon.

My hon. Friend the Member for Croydon Central (Gavin Barwell) makes a very good point. We have already saved £50 million by relocating Government property. The Minister for the Cabinet Office and Paymaster General, who sits in the Cabinet and does an excellent job, has saved £2.6 billion by combining quangos and public bodies, but I am sure there is more we can do, including, perhaps, in Croydon.

[Edward Miliband]

Will the Prime Minister explain why he proposes to remove the mobility component of disability living allowance from 80,000 care home residents?

[The Prime Minister]

The short answer is that we are not.

[Edward Miliband]

Not for the first time, I have to tell the Prime Minister what is in his own legislation: clause 83 of the Welfare Reform Bill proposes precisely that and people do not understand why he is doing it. If he is saying that he is going to abandon the policy, then, great, let us abandon the policy.

[The Prime Minister]

The review of disability living allowance and the mobility component is wrapped up in the new personal independence payment. That is what is happening. To be frank, this point has been raised right across the House of Commons and is a point that we have responded to. It is a review that the right hon. Gentleman can take part in; perhaps he can say something constructive.

[Edward Miliband]

It is not a review, it is a proposal—a clause—in the Bill to take away the mobility component of DLA. Some 22 disabled persons organisations up and down the country are saying that the Government should abandon the policy. I have a suggestion for the Prime Minister: why does he not complete the review now and say that he is dumping the policy? He has done it before.

[The Prime Minister]

The first thing the right hon. Gentleman said about disability living allowance was that he wanted to support our gateway reforms, but we do not hear much about that any more. As I have said, the review of DLA is rolled into the personal independence payment. That is how we will reform the mobility component. Instead of getting so excited about it, he should congratulate the Government on listening to opinion from across the House.

[Karl MᶜCartney (Lincoln) (Con)]

My right hon. Friend the Prime Minister might be aware that the Financial Times reported earlier this week that Gaddafi is sitting on $6.5 billion-worth of gold in his war chest. Although there is precious little to commend the current leader of Libya, gold has been the great inflation hedge throughout our history. Britain, on the other hand, sold off her gold reserves at the behest of the shadow Chancellor, when he worked as a bag carrier at the Treasury, in order to bolster the then failing euro. Which of those two is more psychologically flawed?

[The Prime Minister]

That was an ingenious question from my hon. Friend. I have to say that selling the gold was one of the many appalling decisions taken by the previous Government and was advised by the two people now responsible for their economic policy in opposition.

[Chris Evans (Islwyn) (Lab/Co-op)]

Q5. Why is poor performance still being rewarded in the banking industry with massive bonuses?

[The Prime Minister]

What we have done in the banking industry is make sure that it is paying a £2.5 billion banking levy, not as a one-off, but every single year during this Parliament, so under this Government, the taxes it pays will go up; the bonus levels have gone down; and the lending to small businesses—and large businesses—will increase. The hon. Gentleman should welcome that approach.

[Alun Cairns (Vale of Glamorgan) (Con)]

What conclusions has the Prime Minister drawn from the statement of the secretary-general of the OECD, who recently said

“if you don’t deal with the deficit you can be assured that there will not be growth”?

[The Prime Minister]

The OECD was in town last week and gave the clearest possible message: if we do not deal with the deficit, we will not get any growth. That is what it said, and it is about time that the Opposition started listening to it.

[Roberta Blackman-Woods (City of Durham) (Lab)]

Q6. I am sure the Prime Minister is aware that unemployment in my constituency will increase as a result of public sector cuts. What is his Government doing to expand private sector job opportunities in the area, such as supply-chain jobs from the Hitachi train-building programme? Will he ask the Business Secretary to meet local businesses and Durham county council about that, to boost jobs in Durham and the north-east?

[The Prime Minister]

I am very happy to arrange that meeting. The point that the hon. Lady makes is absolutely right: at a time when, frankly, any Government would have to make public sector cuts, we have to make sure that the private sector grows. That is why we have the regional growth fund, which is putting money and leveraging new jobs into the north-east. That is why we will introduce things such as enterprise zones, and that is why, if she sits and waits patiently, she will hear in the Chancellor’s Budget a whole series of measures to fire up the private sector and make sure that we get growth right across our country.

[Richard Fuller (Bedford) (Con)]

After fuel duty, council tax is the most despised tax in the country, and under the Labour Government it increased mercilessly, year on year. Will the Prime Minister tell me how many councils, like Bedford borough council, have taken advantage of the offer made by the Chancellor in last year’s Budget and frozen or reduced council tax?

[The Prime Minister]

My hon. Friend makes a good point. It is worth while noting that we now know that every single council in the country has agreed to take part in the Government’s council tax freeze. I would have thought that would be welcomed across the House of Commons, because people do face a difficult situation with the cost of living. We have taken action on council tax; we are lifting people out of income tax; we are uprating the pension in line with earnings, instead of prices; and I hope that the Chancellor will have a few more things to say in a minute or two.

[Mr Brian H. Donohoe (Central Ayrshire) (Lab)]

Q7. The Prime Minister knows of my passion for the no campaign on the alternative vote, and I know that he will be working day and night on that subject. However, I have another passion: legal aid. What will his Government do to protect those who are debarred from legal aid, and to get rid of all the abuse in the legal aid system at present?

[The Prime Minister]

Of course, this is a devolved issue for Scotland, but what we have done elsewhere in the United Kingdom is maintain the grant that we give centrally to the citizens advice bureaux to make sure that work goes ahead. If the hon. Gentleman looks at the comparative figures, he will see that this country spends way more per head on legal aid than comparator countries, and it is right that it should be reformed.

[Mr Laurence Robertson (Tewkesbury) (Con)]

Q8. Is the Prime Minister aware of the very poor rail services between Gloucestershire and London? As a result of that problem, my hon. Friend the Member for The Cotswolds (Geoffrey Clifton-Brown) and I have campaigned very long and hard for the line between Swindon and Kemble to be redoubled. Will the Prime Minister give every consideration possible to that project?

[The Prime Minister]

I do know the problems that there are between London and Gloucester, and also, as a Member of Parliament with a seat to the west of London, I know the problems on the Cotswold line, which has recently been improved through redoubling. I hope that my hon. Friend will sit patiently, because I very much hope that the Chancellor might have something to say about how we will make life easier for my hon. Friend’s constituents who want to get to and from Gloucester and London.

[Angela Smith (Penistone and Stocksbridge) (Lab)]

Q9. Will the Prime Minister update the House on the representations that he has received from the Deputy Prime Minister on reinstating the loan to Sheffield Forgemasters?

[The Prime Minister]

The hon. Lady knows well that this was done on the basis of affordability, but she also knows that Sheffield Forgemasters has been encouraged to bid under the regional growth fund; that is an approach it can take.

[Elizabeth Truss (South West Norfolk) (Con)]

Given the central role that RAF Marham and the Tornado have played in securing a no-fly zone over Libya, and the brave actions of our service personnel despite the ongoing uncertainty at that base, is it not time that we confirmed the future of RAF Marham as a fast jet base?

[The Prime Minister]

My hon. Friend makes an important representation on behalf of a vital base in her constituency. It gives me the opportunity to pay tribute again to what our brave pilots are doing, whether flying Typhoons in order to police the no-fly zone, or flying Tornadoes in order to carry out vital operations on the ground in Libya. She makes a very strong case, but I know that others will be making a case too. These decisions will be taken in due course by the Ministry of Defence.

[Emma Reynolds (Wolverhampton North East) (Lab)]

Q10. Last week the Prime Minister told the House that people here are twice as likely to die from a heart attack as people in France, but is not the truth that survival rates are improving, we will have a lower death rate than France by next year, and we have record levels of satisfaction with the NHS? When will he stop talking down the NHS and distorting the figures?

[The Prime Minister]

The NHS has done extraordinary things for me and my family. I am passionate about the NHS. I passionately want it to remain free at the point of use on the basis of need and not related to people’s ability to pay. The point of reforming the NHS is to safeguard it for the future. That is what everyone in the House wants. I will never talk down the NHS, but if we really believe we cannot do better on cancer, heart disease and stroke, we are fooling ourselves. We must do better, and that is the aim of our reforms.

[Duncan Hames (Chippenham) (LD)]

The coalition agreement promises the public greater accountability in NHS commissioning through directly elected individuals on the boards of primary care trusts. As PCTs are on their way out, does the Prime Minister accept that the best way now to deliver that commitment is to reserve places on GP consortia boards for locally elected people?

[The Prime Minister]

One of the ways we can make the NHS more accountable is through the better combination of the NHS and local government. That is what our proposals envisage. That is the best way to make sure that there is good democratic accountability for what happens in our NHS.

[Mr David Blunkett (Sheffield, Brightside and Hillsborough) (Lab)]

Q11. The Government have not yet factored into their future Budget proposals the sell-off of the bank assets that we own. Given the Prime Minister’s commitment to volunteering and the dire straits that many young people face because of unemployment, will he consider an endowment fund for a nationwide volunteer programme, building on the six-week national citizen service and benefiting individuals and the nation as a whole?

[The Prime Minister]

The right hon. Gentleman makes an extremely interesting suggestion. Obviously, there will be an opportunity to sell the bank assets that we own. I do not think that that opportunity is right now, or that we should wait to get national citizen service, which he rightly mentions, up and running. I want to see every 16-year-old in our country have the opportunity to take part in something like that to make them feel more part of our country and recognise the responsibilities that we all have as we move towards adulthood.

[Neil Carmichael (Stroud) (Con)]

Q12. With the recent OECD report underlining the fact that the structural deficit has caused so many difficulties for our economy, does the Prime Minister agree that it is all the more important that we upgrade our industry and business by providing training opportunities for young people?

[The Prime Minister]

My hon. Friend makes an important point. It is why we are making bold and difficult reforms in education. As we stand today, less than 50% of young people at 16 are getting grades A to C in English and maths. We must make sure that people are properly prepared for the world of work, and that is not good enough. I pay tribute to my right hon. Friend the Education Secretary, who is setting a higher bar for himself and for the Government. We have to make sure that we get over it.

[Mr Denis MacShane (Rotherham) (Lab)]

I welcome the Prime Minister’s U-turn yesterday with the announcement that the United Kingdom will now opt into the EU directive on sex slave trafficking, which many have campaigned on for six months. This is a cross-party issue which he takes seriously. Will he ask the Home Secretary, seated on his left, to look particularly at unaccompanied children arriving at the Eurostar terminal at St Pancras, as there is evidence that some of them may be trafficked? We may be able to put some block on this terrible thing with a bit of work there.

[The Prime Minister]

I am grateful to the right hon. Gentleman for his question. He is absolutely right: this is an issue of cross-party concern. As he knows, we completely agree with what was proposed for the human trafficking directive. We decided to wait and check that it would actually be in line with what was wanted and did not have further dangers in terms of our immigration policy. I am happy to say that we will be opting into the directive, with parliamentary permission. Above all, we must ensure that our arrangements are in place to help trafficked children, including in the way he suggests.

[Matthew Hancock (West Suffolk) (Con)]

Q13. A recent Public Accounts Committee report found that in the past hospitals were built under the private finance initiative even though it was more expensive than other forms of financing. In some PFI hospitals, it now costs £333 to change a light switch. What is the Prime Minister going to do about it, and whose fault was it?

[The Prime Minister]

My hon. Friend makes an important point. Some of the PFI deals that were entered into were extremely expensive, and the costs will rack up on taxpayers for years to come. He does not have to believe me, as we now have it from Labour’s shadow Health Secretary, who has made a number of helpful interventions in recent weeks. The latest one was in the Morning Star—not a paper I always read. Whether talking to a communist paper or backing Tory plans, he is very consistent: he is always in favour of what the Government are doing. He said:

“There is definitely a case for saying we were poor at PFI, poor at negotiating PFI contracts from the outset.”

I could not agree more.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

Q14. Some £180 million of land and property assets assembled by One North East are at risk of a fire sale to benefit central Government coffers. The Association of North East Councils and the Northern Business Forum have joined forces in a bid to take on those assets for the benefit of our region. Will the Prime Minister back the bid and put his warm words on localism into action?

[The Prime Minister]

I am grateful to the hon. Lady. As we move from the regional development agencies to the new local enterprise partnerships, many of which are up and running and doing a good job, it is important that we ensure we have good consistency and continuity, and I will certainly look at the case she makes.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

Will my right hon. Friend comment in advance of the Budget on this country’s current financial situation in terms that I can use to convey to my constituents the dreadful state of the economy that we inherited from the party opposite?

[The Prime Minister]

One way of putting that inheritance is that we had a Budget deficit that was bigger than Portugal’s, bigger than Spain’s and bigger than Greece’s. It is only because of the action we have taken in government to show how we will pay down our debts that we have interest rates in this country that are at a similar level to Germany’s. That is what we have been able to do, to the huge benefit of our economy and with absolutely no help from the party opposite.

[Paul Blomfield (Sheffield Central) (Lab)]

Q15. It was reported at the weekend that the Department of Health has failed to publish research it commissioned and received last autumn showing the highest ever level of satisfaction with the NHS. Will the Prime Minister urge the Secretary of State for Health to publish that research without further delay, or, by not doing so, will he confirm that the British Medical Association was right last week when it deplored the Government’s use of misleading and inaccurate information to denigrate the NHS and justify their reforms?

[The Prime Minister]

This Government have published more information about the NHS than any other. Indeed, the hon. Gentleman is quoting from a published report. The point I would make to him is this: if we had survival rates for cancer that were the same as the European average, we would save 5,000 lives every year. Do Members opposite want to save those lives, or are they going to stick with the status quo and say that there should be no choice, that patients should not have a say in how they are treated and that doctors should not be more involved in the health service? What a backward step, and what a backward lot.

[Mrs Anne Main (St Albans) (Con)]

Parents value the 15 hours’ free nursery provision they are given, but 22 nurseries I have met are concerned that the new guidelines do not give enough flexibility. Will the Prime Minister talk to my right hon. Friend the Secretary of State for Education to see whether there is a problem?

[The Prime Minister]

I will certainly do that. Obviously, what we have done is to make sure that we have properly funded the extra hours of nursery education for three-year-olds and, for the first time, introduced that provision for disadvantaged two-year-olds, so that is a big step forward. At a time of spending constraint and austerity, we have been able to help the poorest families in our country to have a better future, but I will certainly take on board the point my hon. Friend makes and make sure that she meets my right hon. Friend the Education Secretary to ensure that it is introduced in the right way.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

In a newspaper interview last weekend, the Secretary of State for Energy and Climate Change cast doubt on the viability of investment in the civil nuclear energy industry. Given the strategic importance of the industry and the need for certainty and commitment from the Government, can the Prime Minister reassure the House and business that his policy is unaltered in that area?

[The Prime Minister]

I can do that, and the point I would make—the Energy and Climate Change Secretary would say exactly the same thing—is that what we have done is to create a fair playing field where that private investment can come forward. What we should not be doing is having unfair subsidies. We are making sure that on issues such as planning and carbon pricing the situation is very clear, so that nuclear, which is part of the energy mix in this country, can go on being part of the energy mix in our country.

[Nicky Morgan (Loughborough) (Con)]

Last Friday I visited Rawlins community college in my constituency and spoke to a very bright group of economics students. We discussed the fact that Governments cannot spend money they do not have. The students understood that; why does my right hon. Friend think the Opposition do not?

[The Prime Minister]

My hon. Friend makes a very good point. I know the Opposition do not like to hear about the mess they left, but let me give them some new published information about the mess they left. This is what we inherited: we are 72nd on wastefulness of Government spending, behind Kazakhstan and Cambodia; 108th on Government debt, behind Malawi, Lesotho and, yes, you’ve guessed it, Libya; and—this is the best one—on the soundness of banks, we are 133rd. Our banks, under Labour, were less sound than those in Serbia, Estonia, Madagascar and Chad. That is the record we inherited from the Opposition, and we will not tire of reminding them.

Oral Answers to Questions

Lord Cameron of Chipping Norton Excerpts

Wednesday 15th December 2010 Commons Chamber

[Heidi Alexander (Lewisham East) (Lab)]

Q1. If he will list his official engagements for Wednesday 15 December.

[The Prime Minister (Mr David Cameron)]

This morning, I had meetings with ministerial colleagues and others, and, in addition to my duties in this House, I shall have further such meetings later today.

[Heidi Alexander]

Time and time again, the Prime Minister has said that he wants to protect the poorest and most vulnerable while reducing the budget deficit, so can he explain to me and to residents of my Lewisham East constituency why he is heaping huge cuts on local councils, which tend to spend half their overall budget on child protection, care for the elderly and services for the disabled?

[The Prime Minister]

Let me tell the hon. Lady what we are doing in Lewisham to protect the most vulnerable. The per pupil funding in our schools in Lewisham will be maintained at £6,951 per pupil—that is the 10th highest in the country, recognising the level of deprivation. On top of that, for the first time in our history we will be adding a pupil premium of £430 per child. That is an excellent policy.

[Mark Reckless (Rochester and Strood) (Con)]

Q2. The BBC reports that the German Finance Minister wants to set an interest rate to punish Ireland. Will the Prime Minister confirm that this country wants to help Ireland?

[The Prime Minister]

My right hon. Friend the Chancellor of the Exchequer will be setting out the details of the loan on Second Reading of the Bill today, but I think that it is worth standing back and asking ourselves, “Why is it that we are able to make a loan to Ireland? Why is it that people are asking us to do that?” It is because Britain’s economy is out of the danger zone and recovering. If we had listened to the Labour party, we would still be in a hole.

[Edward Miliband (Doncaster North) (Lab)]

May I start by paying tribute to our troops serving in Afghanistan? We owe them a huge debt of gratitude for everything that they are doing for us, and our thoughts will be with them and with their families, who will be apart from them at this time of year.

Does the Prime Minister recognise the concern that there will be about the rise in unemployment of 35,000 that we saw this morning? Does he understand that for all those families around the country, his confidence and indeed his restatement today that Britain “is out of the danger zone” will seem very hollow?

[The Prime Minister]

First, let me join the right hon. Gentleman in paying tribute to our forces in Afghanistan, whom I visited last week, and to all their families, who will be missing them at Christmas time. To be fair, under the Government of whom he was a part and under this Government we are making big improvements on their contact home—on fax time, telephone time and all the contact that they need—and that is absolutely right.

On the unemployment figures, of course everyone should be concerned—and I am concerned—by a rise in unemployment. When anyone loses a job it is a tragedy for that person, and we must do everything we can to help people into work. With the Work programme we will be launching the biggest back-to-work programme in this country for 70 years. To be accurate, although part of the figures are disappointing, they are mixed because we see that the claimant count has come down in the unemployment figures and we are also seeing an increase in the number of vacancies in our economy—every day there are another 10,000 vacancies. So, yes, we have to get the private sector going and increase the number of jobs available. Over the past six months, we have seen 300,000 new private sector jobs. We need more of them, and keeping our economy out of the danger zone is the way to get them.

[Edward Miliband]

The Prime Minister slightly sounds as though he paints himself as an innocent bystander in relation to the unemployment figures. He should not be pressing ahead with a rise in VAT on 4 January and £20 billion of public spending cuts.

I want to turn to another aspect of the Prime Minister’s financial plans. Can he confirm that the Government are now set to break the promise made in the coalition agreement:

“We will guarantee that health spending increases in real terms in each year of the Parliament”?

[The Prime Minister]

Being a bystander would mean having no plans to deal with our economic problems. This Government are cutting corporation tax, abolishing Labour’s jobs tax, reducing national insurance and increasing our jobs programme. No one should be complacent; complacency is having no answers. No one should be complacent, but we do see retail sales up, exports up, manufacturing up, interest rates coming down since the election and growth higher than expected. I am not in the slightest bit complacent about what we need to do, but let us not talk down the performance of our economy.

Turning to the NHS, we have increased the NHS budget by £10 billion in this Parliament. I must say to the right hon. Gentleman that only one party stood at the election on saving the NHS and its spending and that was this party right here. I am confident that we will fulfil our goal of real-terms increases every year in the NHS.

[Edward Miliband]

It is very interesting that the right hon. Gentleman says that he is confident. He should listen to what the Conservative-led Health Committee said only on Monday. It said that with inflation now higher,

“the Government’s commitment to a real terms increase in health funding…will not be met.”

We all remember those posters during the election and we all remember his face, airbrushed, on those posters. Will he now admit that he is breaking that promise?

[The Prime Minister]

We are not breaking that promise. We want to see NHS spending increase by more than inflation every year. Let me be clear about who supports this policy. The shadow Chancellor—this is not vague, but pretty clear—said, when asked whether it is right to protect NHS spending:

“There is no logic, sense or rationality to it at all.”

Let us be clear: on this side of the House, we want real-terms increases in health spending to ensure that we improve the health of our nation; the Opposition are committed to cutting the NHS.

[Edward Miliband]

I know that the right hon. Gentleman is good at the broad brush, that he is good at the airbrush and that he does not do detail, but he should read the report, which says that health service spending will be cut next year in real terms.

Let me turn to his next broken promise on the NHS. He pledged, and the coalition agreement says:

“We will stop the top-down reorganisations of the NHS that have got in the way of patient care”,

but that is exactly what the Government are forcing on the health service. Fewer than one in four doctors think that it will improve patient services and independent experts say that it will cost £3 billion. After six months, is not an old truth being confirmed? When it comes to the NHS, you cannot trust the Tories.

[The Prime Minister]

There are moments when I think I am up against Basil Brush. When it comes to protecting the NHS, only one side of this House is committed to protecting NHS spending and that is this side.

Now we come on to reforming the NHS. We are not reorganising the bureaucracy of the NHS; we are cutting and abolishing it. Because we are making a 45% saving in the bureaucracy of the NHS, that will save £1.9 billion. Because we are increasing the spending on the NHS, that money will go into hospitals, beds, nurses and doctors. All those things would be cut if it was up to the Opposition because they do not have a commitment to maintaining NHS spending.

[Edward Miliband]

The Prime Minister is breaking his promise and he does not want to admit it. What does he want to do? He wants to leave it to the back end of the pantomime horse, the Deputy Prime Minister, to break the promises. It is time that the front end of the pantomime horse took some responsibility.

I want to ask the Prime Minister about another broken promise, on the education maintenance allowance. Why does he not go a couple of miles away from here—I know that he does not talk to students, or only to those in China—to Southwark college and talk to the students and teachers there? The business teacher there wrote to me and said—[Interruption.] I would have thought that Government Members would want to listen to the fate of students and young people up and down this country. The teacher said:

“I see the benefits that the EMA provides for many of my learners. I see how they struggle to pay for transport…books and other essentials. How can we expect them to aspire to a better life if we deny them the means?”

[The Prime Minister]

The right hon. Gentleman wants to talk pantomime. I am afraid it will not be long before he is thinking, “Look behind you!”

The problem with the education maintenance allowance is that research shows that 90% of those who receive it would stay on at school anyway. As we are raising the school participation age to 18, it is right that we replace the education maintenance allowance with something that is better targeted. The right hon. Gentleman has to look at the bigger picture, which is that we inherited a completely wrecked set of public finances. His questions are always about this cut or that cut; we know which cuts he is against, but he has not made one single suggestion about how to dig the country out of the pit of debt that he left us in.

[Edward Miliband]

The truth is that the right hon. Gentleman began the year making promises and now he is breaking them. The promise on NHS spending—broken; the promise on the education maintenance allowance—broken; the promise on universal child benefit—broken; the promise on knife crime—broken; and the promise on new politics—broken. Should not his new year’s resolution for 2011 be to keep the promises he made in 2010?

[The Prime Minister]

It can be put quite simply: Labour started the year with a leader who was dithering and had no answers on the economy and it has ended the year with a leader who is dithering and has no answers on the economy. I suppose, in Labour terms, that is what passes for progress.

[Iain Stewart (Milton Keynes South) (Con)]

Q3. The Bletchley Park Trust in my constituency hopes to buy for the nation the personal papers of Alan Turing, the heroic wartime code breaker. It is confident of raising the funds to buy the papers, but there is a danger that the auction might take place before it has the chance to do so. Will my right hon. Friend do all he can to give Bletchley Park a fair chance to secure those important documents for the nation?

[The Prime Minister]

I would certainly like to do that, because I think my hon. Friend is entirely right—Alan Turing was a remarkable man. Many of the people who worked on cracking the enigma code at Bletchley Park during the war are still alive and we owe them a huge debt of gratitude. They made a decisive difference in winning the second world war and we should praise all of them. Of course I hope that private donors will generously support the fundraising campaign and I am very happy to work with my hon. Friend and do anything I can to make that happen.

[Joan Ruddock (Lewisham, Deptford) (Lab)]

Earlier, the Prime Minister expressed concern about unemployment. Unemployment in his constituency is 1.5% whereas in my constituency it is 7.3%. A full Jobcentre Plus service is available in Witney, but he has decided to close down the Deptford jobcentre. That cannot meet any test of fairness, so will he personally review that disastrous decision?

[The Prime Minister]

I will very happily look at the distribution of jobcentres, but the fact is that, through local government and other spending, we put a lot more money into deprived areas in our country. [Interruption.] Yes, we do. I had a little check before coming to Question Time and if we look at what is happening to grant changes—for instance, comparing my constituency with that of the right hon. Member for Doncaster North (Edward Miliband)—the cut in grant in my constituency is 27% greater than in his. I simply do not accept that the Government are not being fair and helping those who need help the most.

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

Q4. All of us in the Chamber will have had tragic cases of late diagnoses of cervical and breast cancer in our constituencies—cancers that should and can be survived. The Prime Minister promised to do more when he was in opposition. Now that we are in government, what is he doing about the unacceptably low survival rates?

[The Prime Minister]

My hon. Friend is absolutely right to raise this issue. The first thing we did was to make good on our promise of a cancer drugs fund. We put money into that fund so that thousands of people who were without the drugs they needed can now get them. We want to see further improvements on cancer screening and much more focus on cancer outcomes, and unlike the Labour party we are prepared to put the money in to make sure it happens.

[John McDonnell (Hayes and Harlington) (Lab)]

According to the latest statistics, children of asylum seekers have been placed in detention centres on 665 occasions in the past year, which means that it is highly likely that there will be children in our detention centres this Christmas. This is not a party-political point. May I ask the Prime Minister, on behalf of the whole House, to give a commitment that by next Christmas, in 2012, there will be no children of asylum seekers in detention centres, and that there never will be again?

[The Prime Minister]

The hon. Gentleman has made an important point. In our coalition agreement we made a commitment to address the issue, and the Deputy Prime Minister will make a statement tomorrow about how we will end this scandal.

[Mr Edward Leigh (Gainsborough) (Con)]

Q5. As naval aviation celebrates its centenary, will my right hon. Friend guarantee that the promised transfer of 20 Merlin helicopters from the RAF to the Fleet Air Arm will indeed take place? Otherwise critical mass may well be lost, and the first 100 years of a service that has defended us in peace and war may be the last 100 years.

[The Prime Minister]

My hon. Friend is absolutely right to raise that point. Of course I will look into the issue of the Merlin transfer. However, we should be clear about the fact that Britain will still have the fourth largest defence budget anywhere in the world. The Navy will have seven Astute class submarines, 19 destroyers and frigates, 14 minesweepers and other vessels, the Royal Marines—obviously—and our nuclear deterrent. We will have a large and fit-for-purpose Navy of which the country can rightly be proud.

[Mr David Lammy (Tottenham) (Lab)]

The Prime Minister will be aware that there are two great football clubs in north London, Tottenham Hotspur and Enfield Town. He will also be aware that Spurs are considering moving across London to the east end—to the Olympic park. Will he join me, and the Spurs fans who signed a petition entitled “Say NO to ‘Stratford Hotspur’”, in urging the Spurs chairman to put the club and its history before shareholder value?

[The Prime Minister]

My recent experience has taught me to stay out of international football management. While paying tribute to the right hon. Gentleman’s club, to Enfield Town and, of course, to Arsenal as well—I think it right to do that—I will let the club make the decision. However, it is true to say that on the Olympic site there will be a fantastic stadium of which I hope one football club will take advantage.

[Malcolm Bruce (Gordon) (LD)]

Q6. Will the Prime Minister join me in thanking and expressing appreciation to the postal service workers across the United Kingdom—including those whom I visited in Inverurie, Dyce and Ellen—who are struggling through snow and ice to make their deliveries? Does he agree that the mail order firms that are cancelling Christmas in Scotland by refusing to accept orders should recognise that they cannot and do not match the universal postal service, and that for that reason it should be secured and protected?

[The Prime Minister]

The right hon. Gentleman has made an extremely good point. I am sure that all Members in all parts of the House—many of whom will take the opportunity to visit sorting offices this Christmas—will want to record our support and thanks for the very good work that postal workers do throughout the country in ensuring that everything is delivered in time for Christmas. I know that they are having a particularly difficult time in Scotland. Additional air and rail services have been laid on to speed the movement of mail in and out of Scotland, and Royal Mail itself has made a big investment—of £20 million—to try to deal with the most severe weather that it has faced for 30 years.

Again, let us all pay tribute to those who will ensure that cards and presents are delivered on time.

[Mr David Hamilton (Midlothian) (Lab)]

Q7. The right hon. Member for Gordon (Malcolm Bruce) is right. The situation has been horrendous in Scotland, and indeed in the north of England. The only people who are delivering are those in Royal Mail, as the private companies have offloaded their commitments on to it. The £20 million invested by Royal Mail is important. Will the Prime Minister give a straight answer to this question? Will he guarantee that universal service, and will he and his friend the Chancellor of the Exchequer, who is sitting next to him, review Royal Mail’s privatisation and step back from it?

[The Prime Minister]

The whole point of trying to get private capital and management involved in Royal Mail is to make the service better, and to ensure that it can go on doing all the things that we want it to do. Opposition Members—including the Leader of the Opposition—shake their heads, but the fact is that they were going to present plans in the last Parliament, because even they realised that this needs to be done.

[Mary Macleod (Brentford and Isleworth) (Con)]

Will the Prime Minister join me in paying tribute to the service of the Gurkhas and, especially, to my Chiswick constituent, Havildar Lachhiman Gurung, who died on 12 December aged 92? He won the Victoria cross while serving with the Gurkha Rifles in Burma in 1945, where he demonstrated

“outstanding gallantry and extreme devotion to duty, in the face of almost overwhelming odds”.

[The Prime Minister]

I certainly join my hon. Friend in paying tribute to the Gurkhas both past and present. Anyone who goes to Afghanistan and sees how many Gurkhas there are not just in the Gurkha Rifles but in some of the logistic regiments, serving our country extremely well, will know that we owe them the greatest debt of gratitude, and we must always make sure that it is paid in full.

[Mr Ronnie Campbell (Blyth Valley) (Lab)]

Q8. This has been a momentous week, with the trebling of tuition fees for students and the average decrease of 10% in grants for local councils. We have also been told this week that the Chancellor has to build up a war chest of £50 billion just in time for the general election—paid for by working people and their families. [Interruption.] That is right; that is the question.

[The Prime Minister]

I am not quite sure what the question is. Let me just answer the point about fees by putting this point on the record. The Institute for Fiscal Studies has looked carefully at our plans, and it finds:

“By decile of graduate lifetime earnings, the Government’s proposals are more progressive than the current system or that proposed by Lord Browne. The highest earning graduates would pay more on average than both the current system and that proposed by Lord Browne, while lower earning graduates would pay back less.”

I say to the Opposition, including the hon. Gentleman, if they want a progressive system for tuition fee reform, that is what we offer. In terms of dealing with the deficit, it is absolutely vital that we get on top of it. That is good for everyone in this country, his constituents included.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

Q9. Will the Prime Minister ensure that primary care trusts, strategic health authorities and all NHS bureaucracies serve patients, not their own interests? Will he further ensure that the Secretary of State for Health intervenes to stamp out any excessive failures caused by that unnecessary bureaucracy?

[The Prime Minister]

I agree with my hon. Friend, but the key is to try to get rid of so much of that bureaucracy. Under the previous Government, the number of managers went up faster than the number of nurses, and our aim is to reduce that bureaucracy, get rid of that bureaucracy and put power in the hands of GPs and their patients, so that the decisions taken in our constituencies about hospitals and services are driven by the choices our constituents make, rather than by bureaucrats. That is the key to those reforms and why I hope everyone in the House will support them.

[Chris Ruane (Vale of Clwyd) (Lab)]

Q10. Is there any truth in the rumour that tomorrow the Liberal Democrats will move the writ for the Oldham East and Saddleworth by-election for 13 January, thus denying the good people of Oldham a politician-free Christmas and new year? Is that unseemly haste over the festive season a cynical attempt by the Government to avoid the wrath of the public and especially students on tuition fees, school cuts and police cuts?

[Mr Speaker]

We have got the message. The Prime Minister can give an answer.

[The Prime Minister]

Do I gather that the Opposition are frightened of having an election? I would put the question the other way: why should the people of that constituency put up with not having a Member of Parliament, and what have you lot got to be frightened of?

[Andrew Bridgen (North West Leicestershire) (Con)]

Will the Prime Minister outline to the House the steps that the Government are taking to cut through the legacy of red tape and bureaucracy that we inherited from the previous Government in order to deliver real value-for-money front-line services?

[The Prime Minister]

There is no doubt that regulation has got out of control in this country. That is why my right hon. Friend the Business Secretary is introducing a new one-in, one-out rule—so that any time the Government want to legislate or regulate they have to remove a regulation first. That sort of discipline can make a real difference.

[Dr Alasdair McDonnell (Belfast South) (SDLP)]

Q11. May I put on the record my appreciation, and the appreciation of many, of the goodwill and practical neighbourly support that the Prime Minister and Chancellor have shown to Ireland at this difficult time? It makes very good sense, because the Irish economy, the Northern Ireland economy and the British economy are closely intertwined. But the economic indications are that Northern Ireland is still in decline and the economy is in serious need of a boost. May I ask the Prime Minister for his assessment of the possibility of a boost to the Northern Ireland economy by reducing corporation tax to 12.5%?

[The Prime Minister]

The hon. Gentleman makes a good point about the economy in Northern Ireland. We want to see it recover and grow, but everyone in Northern Ireland knows that the size of the state—the size of government—in Northern Ireland has become too big, and we have to see a private sector recovery. We are looking at all sorts of ideas, including the enterprise zone to which my right hon. Friend the Secretary of State for Northern Ireland referred. I should also like to put on record my thanks to those Northern Irish Members who are going to support what we are doing to help the Republic of Ireland in its time of need.

[Sajid Javid (Bromsgrove) (Con)]

Q12. The people of Bromsgrove are immensely proud of our brave servicemen and women. That is why Bromsgrove district council has decided to give the freedom of the district to the Mercian Regiment next month. Will the Prime Minister join me in congratulating the decision of the council, and does he believe that we can all do more to honour our heroes?

[The Prime Minister]

I certainly join my hon. Friend in doing that. Bromsgrove is absolutely right to honour the Mercian Regiment in that way. He brings out an important point. Yes, we have responsibility, as a Government and as a House of Commons, to deliver on the military covenant for our personnel in the armed services, but there is a broader responsibility on businesses, on the media, on us as individuals and on the whole country to work out what more we can do to recognise the bravery of these people who do so much on our behalf.

[Hugh Bayley (York Central) (Lab)]

Q13. There are 1,238 students at York college who come from families poor enough to qualify for a full education maintenance allowance. That is one in three at the college. The chair of governors describes the Government’s plans for EMAs as “totally unacceptable” and the replacement funding as “woefully inadequate.” I know that the Prime Minister visits North Yorkshire from time to time, will he show that he cares about social mobility and that he really is a one-nation Tory by meeting people from the college to discuss—

[Mr Speaker]

Order. I think we have got the thrust of it.

[The Prime Minister]

I absolutely accept that we have got to do more to help people to get from the very bottom to the very top. That is why we have saved the per pupil funding and why we are increasing the pupil premium. When we look at what happened over the last few years, since 2004, child poverty rose by 100,000, inequality reached the highest level since 1961, and 5 million people were stuck on out-of-work benefits. That is why we need to change the way that we help people to get on in life, and that is exactly what we are committed to doing.

[Mike Freer (Finchley and Golders Green) (Con)]

Q14. As we approach Holocaust memorial day, will the Prime Minister confirm that the Government will generously donate to the Auschwitz-Birkenau restoration fund?

[The Prime Minister]

I can do that. Auschwitz-Birkenau is a very powerful reminder of the ultimate consequences of intolerance, and it is only right that it should be preserved to bear witness to the deaths of the millions of victims who perished there and to act as a stark reminder of man’s inhumanity to man. The director of the Auschwitz-Birkenau Foundation has recently visited the UK to discuss funding with a number of Government Departments, and we are also involved in EU discussions. I think everyone in this House knows how important it is to maintain these memorials. We obviously remember the holocaust, but we must also remember that there have been other acts of gross inhumanity more recently. We have to go on remembering to stop that happening again.

[Mr Kevin Barron (Rother Valley) (Lab)]

Will the Prime Minister tell the House whether, when he appointed the ex-Member for Arundel and South Downs to the other place, he knew his thoughts on state benefits being an incentive to breed? Is that another example of the new politics the Prime Minister promised the country?

[The Prime Minister]

I do not know how long that one took to think up. The former hon. Member, who is now a Member of the House of Lords, completely withdrew those comments and apologised for what he said, which was completely unacceptable. I am prepared to leave it at that.

[Andrea Leadsom (South Northamptonshire) (Con)]

Q15. Is my right hon. Friend aware of the concern of many people at reports in the press that he plans to support high-speed rail regardless of next year’s consultation? Will he spread a bit of Christmas cheer by reassuring my constituents that he will keep an open mind and that he will not be railroading through a railroad?

[The Prime Minister]

I completely understand the concern that there is all the way along the proposed line. Obviously, people are worried about it and, yes, this is a proper consultation—it must be a proper consultation and it will be. As I have said before at the Dispatch Box, for 50 years we have been trying to deal with the north-south divide and have a more effective regional policy. I do believe that high-speed rail has a really effective role to play in bringing our country closer together and spreading economic benefit throughout all our country.

[Alison McGovern (Wirral South) (Lab)]

Students in Wirral tell me that they need their education maintenance allowance for travel to go to the sixth form or college of their choice. Catherine McCormack, the head of South Wirral high school, says:

“Without EMA, choice and diversity are not supported.”

Does the Prime Minister think that a choice of courses is only for those who can afford it?

[The Prime Minister]

I have to say to the hon. Lady that we looked very carefully at the study that was completed under the Government of the Labour party and it showed that nine out of 10 of those people receiving education maintenance allowance would have stayed on at school anyway. This is why the Labour party landed us in such a mess over the economy. We have to ask the question about value for money and whether we are spending money in the correct way. We are not abolishing EMAs: we are replacing EMAs with something more effective. At a time—[Interruption.]

[Mr Speaker]

Order. Members ask the question; they must listen to the Prime Minister’s answer.

[The Prime Minister]

At a time when we are legislating to raise the participation age to 18, we have to ask whether it is it is right to spend so much money on asking people to do something that by law they will be asked to do anyway.

[Robert Halfon (Harlow) (Con)]

Time and time again, we seem to be exporting extreme Islamist terrorists and suicide bombers to Afghanistan, Israel and now Sweden. What steps is my right hon. Friend taking to drain the poison of extreme Islamism from our country?

[The Prime Minister]

My hon. Friend raises an incredibly important point. If we are frank on both sides of the House, we have not done enough to deal with the promotion of extremist Islamism in our country. Whether it is making sure that imams coming over to this country can speak English properly, or whether it is making sure that we de-radicalise our universities, we have to take a range of further steps, and I am going to be working hard to make sure that we do. Yes, we have got to have the policing in place; yes, we have got to make sure that we invest in our intelligence services; yes, we have got to co-operate with other countries—but we have also got to ask why it is that so many young men in our country get radicalised in this completely unacceptable way.

[Mr Speaker]

We come now to the 10-minute rule motion. I call Nadhim Zahawi. [Interruption.] If the hon. Gentleman would just wait for a moment, may I, as always, appeal to right hon. and hon. Members who are leaving the Chamber to do so quickly and quietly so that the same courtesy is extended to the hon. Member for Stratford-on-Avon as they would want to be extended to them? [Interruption.] I hope that Members are on their way out, but large numbers of Members will of course be staying to listen to the hon. Gentleman.

Oral Answers to Questions

Lord Cameron of Chipping Norton Excerpts

Wednesday 30th June 2010 Commons Chamber

[Kevin Brennan (Cardiff West) (Lab)]

Q1. If he will list his official engagements for Wednesday 30 June.

[The Prime Minister (Mr David Cameron)]

This morning I had meetings with ministerial colleagues and others. In addition to my duties in the House, I shall have further such meetings later today.

[Kevin Brennan]

Is the reason that the Prime Minister wants to put fewer criminals in jail to do with cutting crime or cutting budgets?

[The Prime Minister]

What the Government want to do is clear up the complete mess of the criminal justice system left by the Labour party. Each prison place today costs £45,000, yet 40% of prisoners are back in prison within a year, more than half of them are on drugs, and around 10% of them are foreign national prisoners, who should not be here in the first place.

[Nadine Dorries (Mid Bedfordshire) (Con)]

The American waste giant, Covanta, is proposing to build in my constituency an incinerator about the size of Wembley. Will the Prime Minister give an assurance that decisions about such matters will be made at a local level in future?

[The Prime Minister]

My hon. Friend is right to raise this, and it is right that decisions should be made locally. We want to make sure that all the latest technology for alternatives to incineration is considered, so that we can make sure that we are using the best ways to achieve a green approach.

[Ms Harriet Harman (Camberwell and Peckham) (Lab)]

We were very concerned this morning to read reports that as a result of the right hon. Gentleman’s Budget, 1.3 million jobs will be lost. Can he confirm that this was an estimate produced by Treasury officials?

[The Prime Minister]

The right hon. and learned Lady should know—[Interruption.] I will give a surprisingly full answer if Opposition Members just sit patiently. This morning the Office for Budget Responsibility produced the full tables for the Budget for employment in the public and the private sector. That never happened under a Labour Government, right? As shown in the Budget, unemployment is forecast to fall every year under this Government, but the tables also show public sector employment. It is interesting that from the tables we can see the effect of Labour’s policy before the Budget and the effect of our policy after the Budget. What the figures show is that under Labour’s plans, next year there would be 70,000 fewer public sector jobs, and the year after that, there would be 150,000 fewer public sector jobs. We have had the courage to have a two-year pay freeze. I know we have all been watching the football, but that was a spectacular own goal.

[Ms Harman]

I know that the right hon. Gentleman has published some new figures today, but it is the figures that he has not published that I am asking about—the figures that show that 1.3 million jobs will be lost. Why will the Prime Minister not publish those Treasury documents? Why is he keeping them hidden?

[The Prime Minister]

The forecasts that are published now are independent from the Government. That is the whole point. [Interruption.] It is no good Opposition Members chuntering about that. They now support the Office for Budget Responsibility, completely independent of Government. The right hon. and learned Lady’s approach is extraordinary. Before the election the shadow Chancellor, the then Chancellor, was asked on BBC radio on 23 April 2010, and the transcript says:

“‘Will you acknowledge that public sector jobs will be cut?’ Darling: ‘It’s inevitable.’”

[Ms Harman]

But even the OBR says that under the Prime Minister’s Budget, unemployment will be higher than it would otherwise have been. It says that on today’s figures and it said that on last week’s figures. Can the right hon. Gentleman confirm that the secret Treasury analysis shows that under his Budget, 500,000 jobs will be lost in the public sector, but even more will be lost in the private sector?

[The Prime Minister]

The figures published today show 2 million more private sector jobs. They show 1.4 million more people in work at the end of this Parliament. They show unemployment falling every year. It is not really any surprise that the former Labour Minister, Digby Jones, after the Budget said—[Interruption.] Why not listen?

[Mr Speaker]

Order. I am sorry to interrupt the Prime Minister. I must ask hon. and right hon. Members to listen with some restraint. I want to hear the answers.

[The Prime Minister]

The Opposition gave him a peerage. They might as well listen to what he had to say. He said:

“I think that sign has gone up around the world saying Britain is serious about sorting out its economic mess”.

He is right. It is a pity he did not say it when he was in office.

[Ms Harman]

The right hon. Gentleman has not answered the question about the 1.3 million. He has not agreed to publish those documents. He should know what abject misery this unemployment will cause to individuals, to families and to communities. Can he tell us now how much extra it will cost in unemployment benefits?

[The Prime Minister]

The right hon. and learned Lady does not seem to understand. Unemployment will be falling during this Parliament. We have published the full figures, but it is not now us publishing the figures, it is the Office for Budget Responsibility. She must understand that this is something the Labour party now supports. Let me repeat: the figures show that unemployment in the public sector would be higher under Labour’s plans next year and the year after. When she gets to her feet perhaps she will tell us whether she now supports the pay freeze to keep unemployment down?

[Ms Harman]

Mr. Speaker, you can always tell when the right hon. Gentleman does not want to answer a question, because he asks me a question. He should recognise that under the OBR figures published today, unemployment is higher than it would have been because of his Budget. The same is shown in the OBR report last week. He will not tell us how much more the Treasury will have to pay out in benefits to people without work as a result of his Budget. Will he tell us how much less will be coming in in taxes as a result of fewer people in work because of his Budget?

[The Prime Minister]

There will be more people in work. Like every Labour Government, the Opposition left us with unemployment rising and at the end of this Parliament unemployment will be falling. That is the difference. My advice would be to look at the figures before standing up and asking the question. If one looks at the figures one sees higher public sector unemployment next year and the year after under Labour. The right hon. and learned Lady has slotted the ball straight into the back of her own net.

[Ms Harman]

We will look at the figures if the right hon. Gentleman will publish them. We know that because this Budget hits jobs, the Treasury will have less money coming in and more money going out. Does not that make reducing the deficit even harder and more painful, with bigger tax rises or even deeper cuts in public services? Why are the Lib Dems just sitting there letting this happen? No one who voted Lib Dem voted for this.

[The Prime Minister]

The right hon. Lady talks about reducing the Budget deficit, but we have not heard one single proposal for cutting the deficit. We all know that the Opposition left us the biggest Budget deficit in the G20—the biggest Budget deficit in our history. We have been having a good trawl for the stupidest piece of spending that they undertook, and I think we have found it. It was in her own Department, which spent £2.4 million doing up the Department, including £72,000 each on two-storey meeting pods known as peace pods. This is what they were for—[Interruption.] It is true. I am reading from her own Department’s staff magazine. Taxpayers have a right to hear where their money went. This is where it went. It was

“a 21st century…space of quality, air and light, where we can…relax and refuel in a natural ebb and flow.”

That is what has happened. They have gone from peaceniks to peace pods, and bankrupted the country in the process.

[Mr Steve Brine (Winchester) (Con)]

The Prime Minister will be aware that Winchester hosted the largest homecoming parade of returning troops from Afghanistan to date last Wednesday afternoon, when 650 men and women from 11 Light Brigade marched through the city’s streets in the presence of the Duchess of Cornwall. Will he join me in paying tribute to those 650 brave men and women, the 64 who did not make it home and, of course, the thousands of Winchester constituents of mine who showed their gratitude for a job well done?

[The Prime Minister]

I shall certainly join my hon. Friend in paying tribute to all those who served in Afghanistan. The homecoming parades that have been instituted are an absolutely excellent way of showing the whole country’s support for our armed forces. He rightly talks about those who did not come home, and we should also think of those who have come home wounded and will need our support, backing and help in terms of health and mental health services, prosthetic limbs and other things of a really high quality for the rest of their lives. I am determined that we will honour that commitment.

[John Cryer (Leyton and Wanstead) (Lab)]

Q2. The leaked Treasury papers are absolutely clear that unemployment will rocket by 1.3 million over the next five years. Does the Prime Minister not realise that millions of people watching this who face unemployment over the next few years will think that his comments are tinged with contempt in his refusal to answer perfectly straightforward questions from the Labour Front Bench?

[The Prime Minister]

The hon. Gentleman is wrong. We are publishing the figures, and they show exactly what will happen in terms of private sector employment and public sector employment. As the previous Government accepted, there will be reductions in public sector employment, but according to the Office for Budget Responsibility, which is independent of the Government, the growth in the private sector more than makes up for that. After he has left this room, he should maybe spend some time in a peace pod, wander to the Library and have a look at the figures, where he will see the Office for Budget Responsibility showing unemployment falling every year of this Parliament.

[Julian Sturdy (York Outer) (Con)]

Q3. Following last week’s much welcomed Budget announcement, does the Prime Minister agree that correcting our deeply unbalanced economy will require fresh investment and enterprise in many northern cities, such as my own of York, which for so long was neglected by the Labour Government? What assurances can he give to me and my constituents that the coalition will do all it can to encourage the economic growth—

[Mr Speaker]

Order. We are grateful to the hon. Gentleman. We need an answer.

[The Prime Minister]

My hon. Friend is quite right to raise that point, because during the past decade the disparity between regions actually got worse. Regional policy has for the past decade been a complete failure, and that is why we are right to cut rates of corporation tax, to say to new businesses, “You can set up without having to pay national insurance on your first 10 employees,” to bias that policy in favour of parts of the country where the needs are greatest and to have a £1 billion regional growth fund that can help parts of the country such as the one that he represents.

[Mr George Howarth (Knowsley) (Lab)]

Does the Prime Minister accept that one consequence of a prison sentence is that those serving them are unavailable to reoffend?

[The Prime Minister]

Yes, absolutely—I mean, that is absolutely right. That is why prison is there. I believe that prison can work; the fact is that it is just not working properly at the moment. When we have got those reoffending rates, the cost of each prison place and the appalling problem of drugs in prison, we have got to reform. If the Labour party wants to put itself on the side of the argument of simply defending the status quo, it is making a great mistake. If ever there were a part of our public services that needed radical reform to make sure that prison does work, then now, that is it.

[Stephen Lloyd (Eastbourne) (LD)]

Q4. Given the Chancellor’s recent comments stating that the UK is open for business, I should like to ask my right hon. Friend the Prime Minister why foreign students who come here to study at English language schools for a period greater than six months and contribute an estimated £600 million a year to that vital industry must now already be able to speak English before they can obtain a visa. Will the Prime Minister arrange for me and a delegation to meet the Immigration Minister to sort that out and show that our Government really are open for business?

[The Prime Minister]

My hon. Friend is absolutely right: we want to make sure that this country is open for business, and we are taking steps to do that. The point about people coming here to learn English is that, if they come to learn English for less than six months, that is permitted, but clearly there are problems, as everybody knows: too many bogus colleges and too many people pretending to come and study, when really they are coming for work. I shall certainly organise a meeting between my hon. Friend and the Immigration Minister to discuss that, but it is right that we have to deal with the problem of bogus colleges, where there has been so much abuse in recent years.

[Meg Munn (Sheffield, Heeley) (Lab/Co-op)]

The Prime Minister has said that he wants to see more companies owned by their workers—the so-called John Lewis model. Sheffield Forgemasters is one of those companies. Will the Prime Minister therefore now accept that he was wrong to criticise its shareholders for seeking a loan from the Government? They were not seeking to line their own pockets; they have not yet taken a penny in dividends. What they were seeking to do was ensure the future of that company and other jobs in the UK.

[The Prime Minister]

The hon. Lady talks about the importance of firms being owned by their own employees; I am looking forward to her support and the support of every Labour Member when we make sure that the Post Office has that sort of ownership model and we get the investment going as well. [Interruption.] I will take that as a yes, then.

[Mr Gary Streeter (South West Devon) (Con)]

Q5. About 5,000 young people a year leave local authority care, and without parental support many of them end up on the streets or in our prisons. Do the new Government have any plans to intervene more effectively in the lives of that very vulnerable group, to try to improve their life chances?

[The Prime Minister]

My hon. Friend is absolutely right to raise this. We really do need to do better as a country. The fact is that around 0.6% of children are in care, but 23% of adult prisoners in our prison system were in care. We have to do better. One of the problems is that, unlike other 18-year-olds, children leaving care aged 18 have nowhere to go and no one to help them. We have to do better. We are looking at this area and I recognise that dealing with the scandal of the poor outcomes for children in care is something, frankly, that everyone in this House ought to support.

[Caroline Lucas (Brighton, Pavilion) (Green)]

Homecoming parades for our very brave soldiers in Afghanistan are incredibly important, but so is an exit strategy from Afghanistan. Given the growing agreement that there is no military solution to the crisis there and that the head of the Army himself has said that we should start talking to the Taliban soon, would the Prime Minister not agree that we should start talking now, so that we can save more lives on all sides and bring our troops home?

[The Prime Minister]

May I first of all welcome the hon. Lady to the House? Winning her seat was an incredible achievement for her party, and I know that she will make a huge contribution during this Parliament.

We discussed Afghanistan at quite some length in the House yesterday. Of course there is no purely military solution; very few insurgencies are ended by purely military means. But I think it is important to continue with the strategy this year of the military surge, to put pressure on the Taliban—and, of course, there should be a political track. But as I said yesterday in the House, we have to recognise that there is a difference between the Taliban linked to al-Qaeda, who want to do so much harm not just in Afghanistan but across our continent as well, and those people who have been caught up in an insurgency for other reasons. Should there be reconciliation and reintegration? Yes, of course; there is, and we can go further. But I think that the things that the hon. Lady is talking about would not be advisable.

[Mark Lancaster (Milton Keynes North) (Con)]

Q6. As we pay tribute to the members of our armed forces who have made the ultimate sacrifice in Afghanistan, it is worth remembering that for every life lost there, six more are changed for ever through the loss of one or more limbs. Sometimes there are things that money cannot buy, but I welcome the Prime Minister’s announcement of an extra £67 million to try to help to counter improvised explosive devices. Will he explain to the House how that money will be spent?

[The Prime Minister]

I thank my hon. Friend for his question and pay tribute to him as a member of our Territorial Army reserve. He is himself a bomb disposal expert who has served in Afghanistan. What the bomb disposal and IED teams do is beyond brave. I saw for myself in Camp Bastion their training and instruction. They do a really extraordinary thing for our soldiers and our country. We announced an extra £67 million to give proper protection; £40 million of that is for more protected vehicles. We will also be doubling the number of teams. All the time, we have to keep up with the technology that our enemy is using.

My hon. Friend mentioned people coming home having lost one limb or two. These are young people, who do not just want to have a new limb and a quiet life—they want to run marathons and to climb Everest. They want to have fulfilled lives. We have to make sure that the support and the very best prosthetic limbs are there for them so that they can lead those lives.

[Kate Green (Stretford and Urmston) (Lab)]

Q7. In light of the earlier exchanges about employment and job losses, does not the Prime Minister think that the announcement this week of a further 4,000 full-time-equivalent staff being cut from Jobcentre Plus by next March amounts to a false economy?

[The Prime Minister]

First, I welcome the hon. Lady to the House. Not everyone will know that she was head of the Child Poverty Action Group, which has done incredible work in our country over many years. I pay tribute to her for that.

Let me just repeat: the forecasts show employment rising—that is the key—and employment is the best way of tackling poverty. Of course there are going to be public sector job losses, and of course there are going to be cuts in some programmes—that would have been true under a Labour Government, and it is true under our Government. The key, though, is gripping this problem so that we start to get confidence and growth in our economy and so we start to get the recovery. I say to Labour Members that they have got to engage in this debate rather than play this pathetic game of pretending there would not have been cuts under Labour. There would have been—they announced them, they just never told anyone what they were.

[Charlie Elphicke (Dover) (Con)]

The campaign of the right hon. Member for South Shields (David Miliband) is so confused these days that he is seeking support from Conservative MPs. He says that the Budget was avoidable. Can I ask the Prime Minister whether it was avoidable or—[Interruption.]

[Liz Kendall (Leicester West) (Lab)]

Q8. The paediatric cardiac unit at Glenfield hospital in my constituency provides outstanding care, not only in terms of the quality of surgery but of the excellent nursing, aftercare, and facilities and support for parents. Will the Prime Minister confirm that all aspects of care will be considered as part of the Government’s review of children’s heart surgery; and will he agree to visit the Glenfield’s unit before the review makes its recommendations to see for himself the excellent care it provides?

[The Prime Minister]

I quite understand why the hon. Lady raises this question. A national examination of children’s cardiac services was started under the last Government, and it will continue under this Government, because we have got to make sure that standards are as high as they can be in this incredibly difficult and technical area. We all have our interests to defend—obviously, I have the John Radcliffe hospital, which does a great job as well, next to my constituency—so she is right to stand up for her constituents in that way. The examination needs to take place. However, one of the keys is going to be protecting, as we believe is necessary, spending in the NHS over this Parliament, with modest, real-terms increases each year. That is our policy; it is no longer the policy of the Labour party. So when difficult decisions have to be made, it would be worse if we were adopting the Labour policy of cutting the NHS.

[Mr Robin Walker (Worcester) (Con)]

Q9. Will the Prime Minister join me in welcoming the fact that through protecting investments in health care, the coalition Government have been able to approve the £40 million hospices capital grant, £600,000 of which will go towards the expansion of St Richard’s hospice in Worcester, which will benefit at least hundreds of patients a year, with community care, and hundreds of families and care workers across Worcestershire in the years to come?

[The Prime Minister]

My hon. Friend is right to raise the hospice movement, which has been one of the great successes of the big society that we have in this country. I think we all cherish what the hospice movement does.

May I take this opportunity, on behalf of the whole House, to pay tribute to my hon. Friend’s father, who served in Parliament for 49 years? He gave great service to this country, and he gave great service in Wales. He had many achievements in his long career. If politics is about public service in the national interest, and things that can change people’s lives, his pioneering reform of selling council homes to their tenants is something that I think has greatly improved our country.

[Gordon Banks (Ochil and South Perthshire) (Lab)]

I wonder whether the Prime Minister could tell us who he considers to be right on short prison sentences—the Secretary of State for Justice or the leader of his party in the Scottish Parliament.

[The Prime Minister]

The point here is straightforward. We all know we have to keep short sentences for some purposes; I have said that, and the Lord Chancellor has said that. Of course we need to have that in some circumstances, but do we benefit from lots and lots of very short sentences? I think it would be better if we could improve community sentences so that they were tough. One of the problems of the appalling inheritance that we have from the past 10 years is that no one has any faith in the community sentences that ought to be a good alternative to prison.

[Tony Baldry (Banbury) (Con)]

Q10. May I urge my right hon. Friend to ignore Simon Heffer when, in The Daily Telegraph today, he advocates the complete abolition of the Department for International Development on the basis that charity begins at home? Will he take this opportunity to tell those sections of the Poujadiste press that keep on having a crack at the Government’s commitment to international development that our national interest, security stability and sense of humanity very often begin overseas?

[The Prime Minister]

My hon. Friend is entirely right, and he has a record as a Minister for Africa and a Development Minister in a previous Government. The fact is that we have made a commitment, both nationally and internationally, to increase our aid spending, and I think Britain should be a country that sticks to its word. I have to say, even to those who take a more hard-headed approach to these things, that overseas aid is in our domestic interest. When we think of the problems that world poverty causes, we see that it is in our interest and that of our national security to deliver that aid. Above all, Britain sticking to its word, as I found at the G8 and G20, gives us the opportunity to have some moral authority and moral leadership on this vital issue.

[Mr Michael Meacher (Oldham West and Royton) (Lab)]

How can the Prime Minister justify the fact that hundreds of thousands of public sector workers, the victims of the financial crash, will unquestionably lose their jobs because of the huge public service cuts to come, when the bankers and super-rich, the architects of the financial crash, whose wealth grew by £77 billion in this last year according to The Sunday Times rich list, stand to lose neither their jobs, their income nor their wealth? Is that what he means by everyone being in it together?

[The Prime Minister]

The right hon. Gentleman fought the last election on £50 billion of unspecified cuts. That is why the figures published today show that public sector job losses would be higher under Labour in the next two years. He can say all he likes about bankers; the fact is, his party would not introduce a bank levy until the rest of the world had decided to do it. We have done it in seven weeks.

[Annette Brooke (Mid Dorset and North Poole) (LD)]

Q11. My constituent Milly, aged five, wrote to me recently asking why there are special days for mothers and fathers and not for children—[Interruption.]

[Annette Brooke]

Will the Prime Minister commit to working with voluntary organisations to raise the profile of our children’s day on 20 November, to celebrate the United Nations convention on the rights of the child and indeed to celebrate the achievements of all our children, whether they be rich or poor?

[The Prime Minister]

The hon. Lady has a long record of supporting children’s day and the United Nations convention, which was signed in 1990. I think we should raise the profile of the day, and I know she will be pleased to note that the coalition is making good progress on that. Only this morning the Minister of State, Department for Education, my hon. Friend the Member for Brent Central (Sarah Teather), held a seminar about special needs children and how we must ensure that their needs are properly protected under this coalition Government.

[Michael Connarty (Linlithgow and East Falkirk) (Lab)]

Q12. The Prime Minister might have noticed that the people of Scotland did not choose his party, except in one seat out of 59, and they did not choose the Conservatives’ poodles, the Liberal Democrats, either. Can he assure the House, as an absolute chill runs through Scotland at the 1.3 million hidden job losses that he did not publish, that any proposals for cuts in public services and expenditure in Scotland, and any Barnett formula cuts, will be brought before the Select Committee on Scottish Affairs—[Interruption.]

[Mr Speaker]

Order. We are grateful to the hon. Gentleman, but the question is too long.

[The Prime Minister]

I am well aware that the Conservative party did not sweep Scotland, and I thank the hon. Gentleman for reminding me of it.

What I said I would do if we formed a Government was to go straight to Scotland and Wales to meet the First Ministers and have—[Interruption.] The hon. Gentleman has asked a question; he might as well listen to the answer before he starts shouting at me. I said that I would have proper meetings and have a respect agenda in which we respected the devolved Assemblies. I have to say that under the last Government there was a whole year during the financial crisis when the Prime Minister of our country did not even meet the First Minister of Scotland. That will not happen under this Government—we believe in respect.

[Matthew Hancock (West Suffolk) (Con)]

Q14. May I tell the Prime Minister how pleased my constituents were when he found £50 million to help further education colleges that were promised funding but left high and dry by the previous Administration? Will he ensure that the application for an FE college in Haverhill in my constituency is given the attention it deserves, so that Haverhill can get the FE college that it is promised?

[The Prime Minister]

My hon. Friend makes a very good public spending application, and I am sure that the Treasury will have been listening carefully. He also makes a very good point: even in a difficult Budget, when reductions had to be made, we have boosted spending on FE colleges and increased the number of apprenticeships, after the shambles left by the last lot.

[Graham Jones (Hyndburn) (Lab)]

Q13. The Local Government Chronicle has listed my constituency as the one that has received the biggest cuts in Britain—nearly £3 million at district level. As the Prime Minister will be aware, it is an area of poor health, low incomes and some of the worst housing in Britain. In fact, at the weekend the Liberal Democrat leader of Burnley borough council, the neighbouring council, said:“The cuts announced by the Government are hitting deprived areas like Burnley much harder than the more affluent areas.”Does the Prime Minister agree with his colleague in the Liberal Democrats?

[The Prime Minister]

Of course there will be difficult decisions in the Budget and on public spending reductions. Everybody should know that and should be honest about it rather than pretending that they would not have happened if we had had a different Government. What we will do is help areas of need through the tax changes we are making and also through the regional development grant of £1 billion, for which areas such as Hyndburn are able to bid to ensure that they get an increased private sector, to try to get the motor of our economy going again. That is absolutely vital.