Coronavirus Bill

Lord Hain Excerpts

2nd reading & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords
Tuesday 24th March 2020 Lords Chamber

[Lord Hain (Lab)]

My Lords, it is always a pleasure to follow the noble Lord, Lord Bates. We all owe a massive debt to the brave and skilled workers who are battling this crisis, including a close relative of mine on the NHS front line who is trying to keep her patients, as well as her husband and three small children, safe. Care workers who are without proper personal protective equipment are looking after another close relative who is in her 90s and in a care home under lockdown.

I thank my noble friend Lady Thornton for her diligent leadership, expertise and hard work, because key questions affecting this Bill remain. First, everyone in government has known for years about the probability of a pandemic at some point. Although I was never a Health Minister, as a Cabinet Minister 17 years ago I recall being alerted during the SARS outbreak. My noble and learned friend Lord Falconer might remember that too. Given that, why was it only last week that the Health Secretary appealed for companies to help produce many more ventilators? Why was this not done much earlier, especially after Chinese scientists gave deadly warnings about the pandemic? Why were plans not put in place for proper testing, especially for front-line NHS staff and care workers? Why were no preparations made to ensure the supply of sufficient personal protection equipment for doctors, nurses and carers?

Secondly, there have been mixed messages. For instance, the Prime Minister suggested that he would be seeing his mother on Mother’s Day, but that was later hastily corrected by No. 10. The contrast with the sober authority of Wales’s First Minister, Mark Drakeford, Scotland’s First Minister, Nicola Sturgeon and the Mayor for London, Sadiq Khan, has been striking.

Thirdly, although I congratulate the Chancellor on acting quickly, providing hundreds of billions of pounds in extra and vital funding to protect employees and businesses—although the self-employed still remain to be protected—and surely with even more to come, the Government must promptly make much more funding available to local councils and voluntary groups because they too are on the front line. However, they have suffered budget cuts of around a third over the past 10 years.

In his novel, The Corridors of Power, C.P. Snow wrote that,

“political memory lasts about a fortnight.”

A fortnight since the Budget, its contents have been eclipsed by the Chancellor’s subsequent coronavirus announcements. He is rightly injecting hundreds of billions of pounds of Keynesian stimulus into an economy that is facing certain recession and perhaps even depression. The scale bears comparison with our Labour Government’s response to the 2008 global banking crisis—a response lambasted by Conservatives ever since. The Chancellor has rightly abandoned all the Tory borrowing rules and spending ceilings because the urgent action needed to stave off disaster requires intervention on a scale that only government can provide. The Chancellor was right to turn away from 10 years of Tory austerity and to throw the power of the state at the most acute crisis we have faced since World War Two.

However, that previous Tory insistence on non-intervention and shrinking the public sector has left us battling the coronavirus with an NHS in England that is short of 10,000 doctors, 40,000 nurses and 110,000 adult social care workers. It did not have to be like this. The Government have been able to borrow at record low interest rates for years and there was no need to wait until catastrophe stared us in the face before discarding the financial straitjacket. Why start spending and investing only in a terrible crisis like this? Despite gargantuan levels of national debt and borrowing to defeat Hitler, Keynesian policies after World War Two—led by both Conservative and Labour Governments—rebuilt this country through huge public investment and spending, generating healthy growth and a buoyant private sector. When the coronavirus outbreak is over, let us not repeat the mistake made after the financial crisis in 2010 of reverting in knee-jerk style to austerity and starving public services of support in a futile attempt to balance the budget, with only feeble growth accompanying it.

After the 1956 Suez debacle, Tory Minister Anthony Nutting wrote: “It has taught us no end of a lesson. It will do us no end of good.” The Conservative Party did not thank him for saying so. Today, after 10 years of avoidable austerity, this coronavirus crisis has reminded everyone what Keynes taught us about the vital role for an active, investing state in a modern enterprising economy.