Oral Answers to Questions

Debate between Lord Jackson of Peterborough and Mark Hoban

Monday 11th March 2013 Commons Chamber

[Mr Stewart Jackson (Peterborough) (Con)]

There is significant concern across the country about the likelihood of welfare dependency as a result of immigration from Romania and Bulgaria from January 2014. Will the Minister look urgently at the habitual residence test within the context of the free movement directive and ensure that such issues are addressed in good time?

[Mr Hoban]

I assure my hon. Friend that we apply a habitual residence test to see whether people moving from other EU states are entitled to means-tested benefits. We will continue to look at that test and at what more can be done to strengthen it.

Section 5 of the European Communities (Amendment) Act 1993

Debate between Lord Jackson of Peterborough and Mark Hoban

Tuesday 24th April 2012 Commons Chamber

[Mr Hoban]

To be fair to the hon. Gentleman, I suspect he is one of the few Opposition Members who supported the 50p rate throughout the period of the Labour Government, and is not one of the late converts that many of his hon. Friends have become.

As I have said, it is important that we create the right competitive conditions for business to flourish, and this Government will continue to invest in our nation’s future. We have announced that we will take forward many of Alan Cook’s recommendations on roads and develop a national roads strategy; we have confirmed investment to provide ultrafast broadband to 10 cities across the UK, with a second wave of cities to be identified in future; and we will continue to support the establishment of a new pension infrastructure platform to unlock an initial £2 billion of investment by as early as 2013.

However, a return to prosperity in the UK depends not only on what is happening here, but on what happens beyond our shores.

[Mr Stewart Jackson (Peterborough) (Con)]

My hon. Friend makes a coherent argument, but we have been told on many occasions that what happens in the eurozone is important for exports. Without any monetary stimulus, and without major fiscal changes or major structural reforms, how can a cumulative 3% year-on-year reduction of budgets in southern Europe in countries such as Portugal, Greece and Italy possibly assist us in growing our economy out of the recession of the past few years?

[Mr Hoban]

My hon. Friend needs to recognise that, in several countries that have a programme in place, there is a requirement to make structural reforms. A number of member states are already embracing structural reforms, tackling issues such as restrictions on the labour market and looking at ways to tackle the burden of regulation. We are seeing the structural reform that goes hand in hand with fiscal consolidation to create a stable and sustainable platform for economic growth. Here in the UK, we are undergoing fiscal consolidation, but at the same time we are engaging in supply-side reforms to help stimulate growth in the economy. I do not see the two as mutually exclusive. Indeed, they need to go hand in hand if we are to deliver growth.

--- Later in debate ---

[Mr Hoban]

The hon. Gentleman makes an important point. In any economy where there is economic change, there will be a political debate, and that political debate is helpful.

[Mr Stewart Jackson]

I thank the Minister for giving way; he is being his normal generous self. Do we not have a responsibility to the millions of young people in southern Europe who are on the edge of penury and economic misery, essentially because of this institutionalised, obdurate approach, principally from the Germans, and the failure to accept that the European Central Bank should be the lender of last resort? This political project, which the euro is, is plunging millions of working people in southern Europe into poverty for the next 10, 15 or 20 years. Surely we have a moral duty not to be complicit.

[Mr Hoban]

My hon. Friend would, I think, be the first to criticise other member states seeking to lecture us on our economic policy, so we need to be careful not to lecture them either. As I said, there is the political will in the eurozone to keep the euro, and its actions are consistent with that. Whether through closer fiscal integration or increased firepower for the European stability mechanism, those signs are there. The fiscal compact is a significant step towards closer fiscal integration.

Oral Answers to Questions

Debate between Lord Jackson of Peterborough and Mark Hoban

Tuesday 24th January 2012 Commons Chamber

[Mr Hoban]

The hon. Lady makes an important point. It is absolutely vital that HMRC looks carefully at the costs it incurs in processing credit card transactions and that it charges taxpayers only what are reasonable costs. We want that same approach to be adopted in the private sector as well, as that would bring huge benefit to consumers.

[Mr Stewart Jackson (Peterborough) (Con)]

16. What steps he is taking to maintain the UK’s triple A credit rating.

[The Financial Secretary to the Treasury (Mr Mark Hoban)]

The Government’s macro-economic strategy is designed to protect the economy through this period of instability, and to lay the foundations for a stronger, more balanced economy in the future. The autumn statement set out a comprehensive plan to return the public finances to a sustainable position and meet the Government’s fiscal targets. In recent months, the major credit rating agencies have reaffirmed the UK’s sovereign credit triple A rating, with a stable outlook.

[Mr Jackson]

Does the Minister agree that the systemic risk to our triple A credit rating is unlikely to be ameliorated by a form of state-sponsored laundering of UK taxpayers’ money through the International Monetary Fund to the failed eurozone, which hitherto has not received the confidence of the bond markets?

[Mr Hoban]

My hon. Friend raises an issue about resources for the IMF. It is absolutely vital that the IMF has the resources it needs to play its part in ensuring that there is a stable global economy, which is in our economic interest. My right hon. Friend the Chancellor has said that if there is a request from the IMF for more resources, he will look at it carefully. If he agrees to the request, and the amount requested exceeds the limit in place at the moment, we shall seek parliamentary approval, but it is absolutely vital, and in our interest, to ensure that there is a stable global economy, because that is of benefit to the UK economy. I hope that the Opposition have changed the approach they adopted last year of opposing increases in the IMF subscription.