Incomes and Prices
Debate between Lord Howell of Guildford and Viscount Younger of Leckie
Viscount Younger of Leckie (Con)
I most certainly will do that. It is certainly a fact, but there is a lot more that we are doing, of course, to help people pay their bills. There are many who are really struggling at the moment, so this is not the only answer. We have to create that balance between recognising the vital importance of public sector workers, while delivering value for the taxpayer and being careful not to drive prices even higher in the future by contributing to the wage-price spiral.
Lord Howell of Guildford (Con)
Has my noble friend noticed that global wholesale gas prices are now falling and that global oil prices, despite the efforts of OPEC in the other direction, are also falling? This implies that the main source of our inflation problem, energy prices, will ease considerably—with luck—before the first half of next year. Would it not be wise to delay as long as possible, if we can do so without breaking any established laws and customs, the fixing of the estimates for full inflation for next year while ensuring that those demanding that wages are not cut too much in real terms also wait to see what actually happens?
Public Spending: Borrowing Increase
Debate between Lord Howell of Guildford and Viscount Younger of Leckie
Viscount Younger of Leckie (Con)
I am not going to be drawn into responding to that. What I will say is that we are set on announcing the medium-term fiscal plan—as I have mentioned at least three times—on 31 October, and that of course is linked to the OBR giving its view on the Government’s plans. We are confident that we will be able to roll out in detail our growth plan, what it means and how it will get this country moving.
Lord Howell of Guildford (Con)
My Lords, the pandemic involved a huge increase in public spending and borrowing, which I thought had the general support of all parties. Stopping the bleeding over energy prices was the same, and yet another colossal amount. As everyone knows, combatting climate change is going to require still more. These are huge increases in borrowing and surely now we are having to pay the price. If in America the Fed is putting up its interest rates, we will have to do the same. Can the Minister clarify where the Opposition stand on that, because they sound as if they are going back on this whole sensible analysis?
Viscount Younger of Leckie (Con)
I thank my noble friend. I think the Opposition probably do understand that. The Government launched the independent review into the delivery of the net-zero climate commitments with a focus on ensuring that the UK’s fight against climate change remains undiminished. I have shied away from saying it so far because everybody has been saying it but many of the issues that we are having to deal with stem from the tail end—the sting—of the pandemic and from the war in Ukraine. We all know that.
UK-US Trade Deal Negotiating Objectives
Debate between Lord Howell of Guildford and Viscount Younger of Leckie
Viscount Younger of Leckie
I am much more optimistic than the noble Lord. I can perhaps reassure him that we are aware that some reforms are required for the WTO. We very much want to play our part in ensuring that those reforms are carried through.
The second thing to say is that the US deal is the first of several. The noble Lord will know that we have Japan, New Zealand and Australia to come, and of course the EU. There was a chance in the past few days, and yesterday, to question my noble friend Lord True on the EU deal. I do not want to be drawn in on that except to say that, in the US deal, we start from a very good platform because we are one nation negotiating with one other nation; with the EU, it is of course a bit more complicated, in that we are dealing with 27 countries —and the House will understand when I say that there are a few more complications than that. However, we are very confident that we will be able to negotiate both a US deal and an EU deal in parallel. I hope that helps to answer the noble Lord’s questions, but I doubt it.
Lord Howell of Guildford (Con)
My Lords, the Department for International Trade has obviously done an enormous amount of work on this issue, a large amount of it under my right honourable friend Dr Liam Fox, the former Secretary of State who was doing a very good job on all fronts. It is absolutely right, as your Lordships have observed, that the USA is far the largest single country market force at 20%; about half is services and is growing, and the other half is goods, which is shrinking. But most consumer market growth in the next 10 years will not be in America, or indeed in Europe—it will be in Asia, by far. That is the huge new area where we have to succeed. Asia will shortly make up half of the world’s GDP, if not more. That happens to be where we are weakest, so I urge my noble friend to remind his colleagues in the Department for International Trade that we should think carefully about our priorities and not spend too much time trying to perfect our excellent trade with America—that may now get more difficult, not easier—when we should really be concentrating all our resources on finding our way into the giant Asian markets, which will really determine our future and prosperity.
Viscount Younger of Leckie
I agree with my noble friend that the Asian market is very important. I mentioned Japan earlier, which he will know is very much on the agenda. There is, of course, more to do in Asia, but I go back to the statistic that I gave earlier: we intend, over the next three years, to cover 80% of our trade deals. That, I would argue, is a very good start. It is right that we are starting not just with the EU but also with the US. It is on the basis that the US, clearly, is on our side: it wants to secure a deal as well.
Veterans: Investigations
Debate between Lord Howell of Guildford and Viscount Younger of Leckie
Viscount Younger of Leckie
The noble Lord is right to the extent that we also wish to come back on the results of the consultation. He will understand that it takes time with 17,000 responses—a lot are very sensitive and a lot are long exposés and letters going back to terrible experiences—but we want to come out with a detailed response to the consultation as soon as possible. As he alluded to, we owe great gratitude for the heroism and bravery of our Armed Forces. We take seriously the issue of the prosecution of veterans. The Prime Minister is fully aware of the strength of feeling on this, both in Parliament and among the public. However, nobody is above the law—we should take that very seriously, particularly in this country. The point has been made that there is a difference in terms of our brave soldiers fighting in Northern Ireland as opposed to in Iraq and Afghanistan.
Lord Howell of Guildford (Con)
My Lords, I declare an interest as having been a Minister for Northern Ireland 45 years ago at some of the bloodiest times and during some of the most terrible atrocities. I understand what the Secretary of State for Defence is trying to do and explain, but it is worth remembering that the Provisional IRA declared that it was a war and that anyone in uniform was a fair target and could be slaughtered—what we called murder and it called war. That distinction should perhaps be made a little more strongly in the Statement. Of course Northern Ireland is different, as the terrorist situations in Afghanistan and Iraq are different. Northern Ireland being part of the United Kingdom made for an additional difference. Nevertheless, it was a war. Young and often inexperienced soldiers were put on checkpoints where they were confronted with a choice of murder or be murdered. The drama of this has to be understood in dealing with the problem of veterans and repeated accusations. Could that emphasis be a little more carefully enunciated in dealing with this matter?
Viscount Younger of Leckie
My noble friend is right that these matters are quite sensitive. On whether the Troubles can be defined as a war or a conflict, to my own knowledge they are defined more as a conflict. What is certain is that our soldiers were put into the front line to deal with some extremely difficult issues and, as soldiers do, they had to make split-second decisions in very demanding situations. We should never forget that they are extremely highly trained, nor should we forget the victims who were caught up in those events. The whole point of what we are trying to do is draw a line under the conflict and move on.
Universities: Financial Sustainability
Debate between Lord Howell of Guildford and Viscount Younger of Leckie
Viscount Younger of Leckie
I shall first answer the question about the pension scheme. The noble Lord may know that Her Majesty’s Government have a consultation on the teacher pension scheme changes which closes on Wednesday—in two days’ time. The Department for Education has limited financial resources and can afford to fund only part of the increase in employer contribution costs relating to the TPS. Schools, further education colleges and other publicly funded training organisations are in great need of additional support for those costs. The live consultation seeks views on the proposal’s impact on higher education institutions. We will finalise funding decisions once that consultation has concluded.
On the Horizon programme, the noble Lord may know that negotiations are ongoing. As he said, it is important that we continue to engage in that programme, and we very much hope that will be the case.
Lord Howell of Guildford (Con)
My Lords, does my noble friend agree that some university funding might be made easier if the whole process of receiving bona fide students from overseas were made somewhat less complicated? Does he agree that that in turn would be much easier if we took the student immigration figures out of the overall immigration figures and dealt with them carefully and sensibly in a separate way, and that this would be particularly beneficial for links with the Commonwealth, and especially with India?
Viscount Younger of Leckie
My noble friend would expect me not to agree with that point, but I think the whole House would agree it is very important that we continue to attract students from overseas—from EU and non-EU countries. It is very encouraging that the number of applicants from the EU has increased by 1% to 43,890. There is still a lot of work to do in that respect but, in terms of students being included in the migration figures, we have had much discussion in the Chamber about that, and I do not want to go into it today.
Nuclear Energy: Small Modular Reactor
Debate between Lord Howell of Guildford and Viscount Younger of Leckie
Viscount Younger of Leckie
The Government acknowledge that industry is eager for greater clarity on the approach we will adopt on small modular reactors. Nuclear power is an important part of our diverse energy mix, and it currently supplies around 20% of our electricity demand. Today, I can announce that the Government are providing up to £7 million over the next two years to increase the capacity of the UK nuclear regulators to support and assess new and advanced nuclear technologies, such as SMRs. Investment from international partnerships is forthcoming, and we expect there to be more of interest in the future.
Lord Howell of Guildford (Con)
Is my noble friend the Minister aware that British firms are making considerable progress in this technology, particular Rolls-Royce? Is he also aware—I am sure he is—that China, Korea, the United States and other countries are all pushing forward with this new technology very rapidly? Would he consider, for the medium term down at Hinkley Point, that installing a series of these much more reliable and possibly cheaper nuclear installations—there is a learning curve, as each new product cuts the costs—may be a much better way forward than continuing with the present plan of the giant, out-of-date design, and staggering cost, of the present project down there, which will impose a vast cost on the British people for years ahead?
Brexit: Belfast Agreement
Debate between Lord Howell of Guildford and Viscount Younger of Leckie(8 years, 2 months ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Viscount Younger of Leckie
It is true what the noble Lord says: it is an interrelated agreement—it is power sharing for Northern Ireland and it is quite a complicated agreement, but there is no reason to suggest that the outcome of the referendum means that the agreement needs to be revisited. Perhaps I can reassure the noble Lord on that. The UK Government, Irish Government and Northern Ireland political parties are fully committed to upholding the agreement and its successors.
Lord Howell of Guildford (Con)
My Lords, is my noble friend aware that the Republic of Ireland has shown some interest recently in associate membership of the Commonwealth? Do Her Majesty’s Government consider that this could be useful in resolving some of the border problems which are being discussed? If so, will the Government consider pressing the Commonwealth authorities to develop the relationship with the Republic of Ireland which is already blossoming quite strongly?
Viscount Younger of Leckie
This is a helpful comment from my noble friend. I know that the new Secretary of State for Northern Ireland has hit the ground running, if I may put it that way. He has been meeting a variety of parties to ensure that he gets into his new role. I will pass that message on.
Carbon Emissions
Debate between Lord Howell of Guildford and Viscount Younger of Leckie
Viscount Younger of Leckie
I draw the noble Lord’s attention to our record over the last five years in making buildings more efficient. Homes and non-domestic buildings built to the latest building regulation requirements are already very energy efficient, so that plays into the affordable homes argument.
Lord Howell of Guildford (Con)
Would my noble friend explain to the noble Lord, Lord Purvis, and indeed the noble Lord, Lord Redesdale, that they are talking about emissions arising from domestic activity and domestic energy production, while, through our colossal imports into this country, our emissions from consumption are rising very fast? They have risen enormously since 1990. If one is concerned about combating global climate change, the changes we are talking about today make very little difference to our contribution, while they probably help a number of would-be homeowners very considerably.
Viscount Younger of Leckie
In taking a holistic view my noble friend makes a good point. Under the UK’s Climate Change Act we are committed to cutting overall emissions by 80% by 2050. This extends the argument beyond housing. Carbon budgets provide the framework to put us on a cost-effective pathway to meeting our legally binding 2050 target.
United Kingdom: Exports
Debate between Lord Howell of Guildford and Viscount Younger of Leckie
Viscount Younger of Leckie
The noble Lord will be aware that we are very much aware of that. Like all major developed economies, the UK does not operate an exchange-rate-targeted monetary policy regime, and has not done so since 1992. The relationship also between exchange rate movements and trade flows is somewhat ambiguous, and evidence suggests that export growth is driven more by changes in foreign demand than by price competitiveness.
Lord Howell of Guildford (Con)
Does my noble friend appreciate that not only does the 40% figure probably largely underestimate the service content in all our manufactures, as well as the major element of equipment and knowledge expertise in all our exports, but that the vast majority of growth in that area is occurring in the huge new markets of Asia and Africa and in the English-speaking Commonwealth network? Will he ensure that his colleagues in all the departments concerned with promotion of services overseas, including the UKTI itself, work harder than ever to focus on that priority and to ensure that we succeed in those markets, where our future will be largely determined?
Viscount Younger of Leckie
My noble friend is right that, through the efforts of UKTI, our focus goes very much beyond the eurozone and the European economy. Despite the tough conditions, UK exports to emerging economies have increased in recent years. It is very pleasing to note that, since 2010, UK exports to the Far East—to China—have increased by 52%, to India by 24% and to Brazil by 37%. However, there is still much more work to do.
Businesses: Employee-shareholder Scheme
Debate between Lord Howell of Guildford and Viscount Younger of Leckie(10 years, 10 months ago)
Lords ChamberRead Full debate Read Hansard Text
Viscount Younger of Leckie
My noble friend would expect—and will not be surprised—to hear me say that it is not my department’s responsibility to formulate tax policy, and that the figures that were given during the course of discussions on the Bill were very much estimates.
Lord Howell of Guildford (Con)
My Lords, while employee share schemes may be less than perfect, and we have heard some negative remarks about them, does the Minister accept that the concept of spreading ownership as widely as possible in our society, turning earners into owners and enabling all parts of society to share fully in the asset growth of the nation is a very good theme that all parties, and their leaders, should strongly encourage, as we have sought to do in the past?
Viscount Younger of Leckie
My noble friend makes a very important point. Indeed, it is true that businesses where employees have a stake in the company have been seen to perform better than those where that is not the case. The employee ownership index has outperformed the FTSE all-share by an average of 10% since 1992, so successful employee-owned businesses do see the engagement of the workforce as an integral feature of how the business is run.
Olympic and Paralympic Games 2012
Debate between Lord Howell of Guildford and Viscount Younger of Leckie
Viscount Younger of Leckie
I take note of what the noble Lord has said. I do not want to go into the cuts element of that, but say only that I wholeheartedly agree with him that the military stepped into the breach, as it were, extremely readily, again with smiles, and that they should be wholeheartedly congratulated.
Lord Howell of Guildford
My Lords, I wish to reinforce what the noble Lord, Lord Wigley, has said. Will the Minister bear in mind that the Commonwealth Games in Glasgow in 2014 will be a spectacular event and a major help to this country vis-à-vis its position in the Commonwealth network, which is growing in strength at all times? The fact that one of the biggest indoor athletic stadiums in Europe has been built bang on time and well within budget is a major achievement. Will the Minister tell all his colleagues in government that it should be supported to the maximum and that the public should give all the encouragement to it that they gave to the Olympic Games?
Viscount Younger of Leckie
That is very much noted. I thank the noble Lord very much; he is absolutely right.