Oral Answers to Questions

Debate between Lord McCrea of Magherafelt and Cookstown and George Osborne

Tuesday 11th September 2012 Commons Chamber

[Mr Osborne]

I think it sends a terrible message to my hon. Friend’s constituents in Brighton and across the country. The last thing this country needs at the moment is a series of strikes. We have struck a good deal for the public sector on public sector pensions that will ensure that people continue to enjoy some of the best pensions in Britain, while at the same time reducing the cost to the taxpayer by 50% over the long term. We are also instituting public sector pay restraint so we do not have to make even more difficult decisions about job losses. That is because we are dealing with a very difficult economic situation with a very large deficit. I would hope that the trade unions would understand that rather than try to take their members out on strike.

[Dr William McCrea (South Antrim) (DUP)]

Will the Chancellor tell us how money can be taken out of the banks and put into small and medium-sized businesses right across the United Kingdom? Without it, we are certainly not going to kick-start the economy.

Oral Answers to Questions

Debate between Lord McCrea of Magherafelt and Cookstown and George Osborne

Tuesday 24th April 2012 Commons Chamber

[Mr Osborne]

I can certainly give my hon. Friend that assurance and say to businesses in her constituency and others that the national loan guarantee scheme is now available through most of the high street banks. We are also investing through something called the business finance partnership in non-bank financing of businesses. Some of that money will be for very small businesses, too, through peer-to-peer lending. As everyone accepts, I think, financial markets across the world, particularly in Europe, are stressed. That is why the Government have to step in and help, and that is what the £20 billion of guarantees that we are offering under the scheme will do.

[Dr William McCrea (South Antrim) (DUP)]

The Chancellor of the Exchequer must be aware of the pressures being exerted by banks on small and medium-sized businesses. What more can he and his Government do to get the banks to assist by making credit available rather than undermining many of those very good businesses?

[Mr Osborne]

The hon. Gentleman is right that small businesses face difficult financing conditions because of the stress in the financial markets and the fact that banks are not able to access funding in the way that they were four or five years ago. That is why we have taken the step of credit easing, which is not something that a Government would do in more normal economic times, and it is why we have the finance partnership and are expanding the enterprise finance guarantee. Those are all designed as Government interventions, using the good credit worthiness that we have earned for this country, to ensure that those lower interest rates can be passed on to small businesses.

Eurozone

Debate between Lord McCrea of Magherafelt and Cookstown and George Osborne

Monday 10th October 2011 Commons Chamber

[Mr Osborne]

There are quite a lot of fire analogies there. We are trying to do those things. First, we are trying to protect our own country. Of course, this was an independent decision of the Bank of England, but when it made its decision it explicitly referenced what was happening in the eurozone as the principal reason for doing so. Secondly, we are very actively engaged with the eurozone in trying to find this international solution to its problems. I mentioned all the conversations that have been had just in the past 72 hours or so. There have been a string of international meetings where we have made forceful interventions. We have helped to push the eurozone in the right direction, but there are also people—leaders—in the eurozone who are trying to lead it in the right direction as well. The hon. Gentleman’s point about the rather remarkable vote by Labour Members against the IMF is well made.

[Dr William McCrea (South Antrim) (DUP)]

In these challenging times for UK families, can the Chancellor assure the House that hard-pressed taxpayers throughout the United Kingdom will not be saddled with the financial burden of saving the euro? Will he continue actively to engage with banks to save the financial viability of small and medium-sized enterprises across the UK?

[Mr Osborne]

The hon. Gentleman makes a good point about the financial burden. Obviously we bear a burden as an economy that is closely inter-connected with the eurozone, but we took a decision that we wanted to get Britain out of the EU27 mechanism, and we put considerable negotiating effort into doing that. That meant not just the current mechanism, with its €60 billion capacity which had been established—we are still part of that—but ensuring that the permanent bail-out mechanism did not include people who were not in the euro. If the members of the euro want monetary union and want to move towards greater fiscal union, it is not reasonable to ask countries that are not in the euro to be part of one of the key mechanisms of that union, which is a bail-out fund.

Oral Answers to Questions

Debate between Lord McCrea of Magherafelt and Cookstown and George Osborne

Tuesday 12th October 2010 Commons Chamber

[Dr William McCrea (South Antrim) (DUP)]

During a visit by the Deputy Prime Minister to Northern Ireland last week, he stated, “I will go away with colleagues in the coalition Government to look at the possible impact of the deficit reduction plan on capital expenditure in Northern Ireland.” Can the Chancellor confirm that that has been done and what steps will be taken in response?

[Mr Osborne]

As the hon. Gentleman may know, I have met the First Minister and Deputy First Minister of Northern Ireland and I am looking at the points that they raised with me. If he will forgive me, I will make an announcement on 20 October.