Monetary Policy Committee

Debate between Lord Maples and Lord Strathclyde

Wednesday 6th July 2011 Lords Chamber

[Lord Maples]

My Lords—

[Lord Strathclyde]

My Lords, we have time for both noble Lords. We can have the noble Lord, Lord Newby, and then the noble Lord, Lord Maples.

--- Later in debate ---

[Lord Maples]

My Lords, consumer price inflation is only one measure of inflation. May I suggest that if in the run-up to the crash the Monetary Policy Committee had been looking at asset price inflation—

[Lord Strathclyde]

My Lords, there are two noble Lords trying to speak. We are on 22 minutes and perhaps we should go on to the next Question.

Osama bin Laden

Debate between Lord Maples and Lord Strathclyde

Tuesday 3rd May 2011 Lords Chamber

[Lord Maples]

My Lords, I agree with my noble friend that our aid programme and friendly relationship with Pakistan must continue. However, these events will alter that relationship and that of the United States with Pakistan, which is perhaps more important. First, I suspect there will be turmoil in Pakistan over what has happened and the death of Osama bin Laden, which may well lead to the fall of the Government.

Secondly, and perhaps more importantly from an American or British point of view, my noble friend said that we will get to the bottom of what happened. However, it seems inconceivable that, without at least the tacit approval of some elements of the Pakistani state, Osama bin Laden could have survived for so long, living in the way that he did in a town less than 100 miles from Islamabad. When we get to the bottom of that, it will almost certainly confirm what many of us have suspected for ages—that elements of the Pakistani state are extremely friendly to the Afghan Taliban. They may want to fight the Taliban operating in Pakistan, but they make a distinction for the Afghan Taliban and are more friendly to it. This will be caught red-handed. Pakistan, whatever its Government, must now be confronted with this problem if we are to continue our friendly relationship with it in an effort to exterminate terrorism from that part of the world and from our own.

[Lord Strathclyde]

My Lords, because of the problems that my noble friend pointed out, it is vital for the United Kingdom to maintain and increase the closeness of the relationship between our country and Pakistan. After all, this is a shared fight—a fight against global terrorism in which Pakistan finds itself on the front line. It is right to record that the Government of Pakistan have formally welcomed the news of the death of bin Laden. The question of who knew what will unfold over the next few weeks and months. With that clarity, no doubt different people will take different views. What does not change is that Pakistan needs a great deal of support, which the United Kingdom is happy to give.

European Council

Debate between Lord Maples and Lord Strathclyde

Monday 20th December 2010 Lords Chamber

[Lord Strathclyde]

My Lords, we certainly played a part in the Irish bailout because we perceived it to be in our national interest, whether Ireland was in the eurozone or otherwise, for reasons that the noble Lord knows well.

The noble Lord asked another question: what happens if another country asks for similar support? He went on to list a few of them. There have been no requests for financial assistance from other member states. It is therefore inappropriate for me from this Dispatch Box to speculate on what may or may not happen in other member states given that no request for assistance has been made. The European financial stability mechanism and the European financial stability facility are fully operational. Any request for assistance from a member state would be considered on its own merits.

The noble Lord started by saying that the eurozone was designed for disaster. It is not easy for those who were not in favour of us joining the euro in the first place to make a coherent argument for the euro, but it is in existence. It is in our political and economic interests in Britain for the euro to succeed and that is why we continue to support it.

[Lord Maples]

My Lords, could my noble friend help me with my memory of the Maastricht treaty, which set up the euro? I seem to remember that two of the conditions were that: first, no Government should run a budget deficit of more than 3 per cent of GDP; and, secondly, that there should be no bailouts? Is not the reason that the European Union—or the eurozone at least—is now having to breach the no-bailout clause because Governments were allowed to breach the deficit clause? Will that change not create a huge moral hazard? They were getting away with breaking the deficit clause but they did not know that they were going to get bailed out. Now that they know they are going to get bailed out, that is creating a moral hazard that surely will encourage bad behaviour in the future. When my noble friend says that we are in favour of these arrangements, is that because we think that it will make the euro stronger or weaker?

[Lord Strathclyde]

My Lords, my noble friend is right some of the conditions for entry into the euro that were laid out in the Maastricht treaty, and other conditions including those on deficits, have been broken. I believe that there is a sense of moral hazard because they have been bailed out, but it is in the interests of everyone within Europe to make sure that no further countries find themselves in financial trouble. That is why the eurozone is itself taking steps to try to manage its affairs in a more coherent way.

Parliamentary Voting System and Constituencies Bill

Debate between Lord Maples and Lord Strathclyde

Monday 15th November 2010 Lords Chamber

[Lord Maples]

I am grateful to my noble friend. Does he agree that an electoral system which, at the general election in 2010, required the Conservative Party to get 40 per cent of the vote to get an overall majority but Labour to get only 34 per cent cannot possibly be considered fair?

[Lord Strathclyde]

My Lords, my noble friend makes a very good point—but it is not the fundamental case that the Government are making in the Bill. This is about a general fairness across the country.