Oral Answers to Questions

Debate between Lord Jackson of Peterborough and George Osborne

Tuesday 19th April 2016 Commons Chamber

[Mr Stewart Jackson (Peterborough) (Con)]

I remember the good old days when the Chancellor regarded Treasury predictions as so discredited that he established the Office for Budget Responsibility instead. I cannot think what could have changed. The GDP projections in his dodgy dossier are predicated on breaking our manifesto commitment on immigration, while the cost implications of his new policy of mass migration for school places, housing, health and transport are not made explicit in the document. Why is that?

[Mr Osborne]

We are having a referendum, and people are going to take different views on the prospects of the United Kingdom as we go forward, but the public want facts and information. We have set out in the analysis produced by the Treasury what we think the likely impacts on the economy will be, and this analysis has now been supported by the London School of Economics. It gives out a similar message to that provided by the Bank of England on the economic shock that would come if we leave. Then there are bodies such as the International Monetary Fund and others saying a similar thing. The weight of evidence and the weight of opinion is clear: there would be an economic price if we left the EU. Some regard that as a price worth paying, which is a perfectly respectable argument, but it is not one that I agree with.

Greece

Debate between Lord Jackson of Peterborough and George Osborne

Monday 29th June 2015 Commons Chamber

[Mr Osborne]

It is fair to say that Greece’s membership of the European Union, as opposed to membership of the eurozone, was an important step in that country’s transition from fascist dictatorship to democracy and in entrenching that democracy, and I think that view is broadly held by the Greek people, whatever their views about the current financial situation or their membership of the euro. I repeat that whatever happens we stand alongside Greece as an important member of the family of European nations.

[Mr Stewart Jackson (Peterborough) (Con)]

Almost 20 years ago a number of us predicted the disastrous consequences that would be visited on small countries as a result of monetary convergence and the single currency, and so it has come to pass this week with Greece, which it seems is being smashed on the altar of German monetary policy. With that in mind, will the Chancellor give the House an undertaking that proposals for further future financial convergence—a single EU-wide corporation tax rate, which would damage the British economy—will never see the light of day?

[Mr Osborne]

I will tell my hon. Friend what I have to say about that: we are not going to sign up to some European corporation tax rate.

Oral Answers to Questions

Debate between Lord Jackson of Peterborough and George Osborne

Tuesday 11th September 2012 Commons Chamber

[Mr Stewart Jackson (Peterborough) (Con)]

3. What assessment he has made of the effect that investment in infrastructure will have on the economy.

[The Chancellor of the Exchequer (Mr George Osborne)]

A competitive market economy such as Britain needs modern infrastructure if it is to succeed, yet in areas such as roads, energy and broadband, the last decade saw us fall behind the rest of Europe. This Government are righting those wrongs by overseeing a £250 billion investment in infrastructure—double the amount in the previous Parliament, even in these straitened times. Our new legislation will guarantee billions more in investment from the private sector. This will bring the new roads, the superfast broadband to our cities, and the new rail connections such as the northern hub. We are also cutting through the delays in Whitehall and in the planning system to make sure that we deliver faster than Labour did.

[Mr Osborne]

My hon. Friend points to the stark truth that, as he says, for every 10 jobs created in the private sector in the south of England only one was created in the north of England. In a region as important as the west midlands, for example, private sector employment fell during Labour’s period in office, and that was before the crash. We are investing in the infrastructure. The trans-Pennine electrification is incredibly important. The stretch between Liverpool and Manchester is already under way, and of course it then crosses the Pennines. We are also fully committing to the northern hub—something that was not done under the previous Government.

[Mr Stewart Jackson]

I support the Government’s national infrastructure plan. I particularly welcome specific projects such as the dualling of the A11 and the potential new A14 toll road in Cambridgeshire near my constituency. Is not the lesson of such discrete local transport infrastructure projects that they deliver a much more profound impact on jobs and growth than grandiose projects such as High Speed 2, the business case for which is fatally flawed?

[Mr Osborne]

I agreed with my hon. Friend until his last sentence. He is right to say that it is not just the big projects announced from this Dispatch Box that count; the local projects in Peterborough and elsewhere will also unlock jobs, development and investment. Of course, we cannot make all those announcements here in the House of Commons. However, we have provided local authorities with the funds to make those transport changes and improvements. We call it the Growing Places fund, and it is worth about £500 million. In the city deals that we are striking with different cities, we are improving road and rail connections to create jobs and get the private sector growing, which is what we all want to see.

IMF

Debate between Lord Jackson of Peterborough and George Osborne

Monday 23rd April 2012 Commons Chamber

[Mr Osborne]

No it is not, and there is no connection between the two matters. An IMF loan comes out of our foreign exchange reserves. That has been the case under Labour Governments, Conservative Governments and this coalition Government. It is a contingent loan that will be drawn upon if the IMF needs resources. We swap our foreign exchange asset for the IMF loan. The Chief Secretary said what he did today because we are trying to get a grip on the public finances. To do that, we have to ensure that Departments can deal with their own contingencies, as and when they arrive.

[Mr Stewart Jackson (Peterborough) (Con)]

We all know that what we are discussing is state-sponsored money laundering to prop up the failed and doomed European project called the euro. The deal does not come without a heavy human cost. In southern Europe, it means the imposition of a net tightening of 3% per year, yet there is no monetary stimulus to offset that, no demand for growth in the rest of Europe and no demand for structural reforms. Why is the Chancellor throwing the good money of UK taxpayers after bad for this economic madness?

[Mr Osborne]

This money comes out of Britain’s foreign exchange reserves and is swapped for an IMF loan. It is therefore not money that we would otherwise spend on public services or use to cut taxes. My hon. Friend is being a little unfair to the countries that are having to undertake difficult structural reforms. For example, Spain has recently passed significant reforms to its labour laws to make its employment market more flexible and Italy has made difficult pension reforms. People will remember the scenes in Italy when those reforms were announced a few months ago. Britain is also having to make difficult reforms and take difficult decisions to make our economy more competitive and to deal with the problems in our public finances.