Economy: Inflation and Unemployment

Debate between Lord Sassoon and Lord Martin of Springburn

Thursday 27th October 2011 Lords Chamber

[Lord Sassoon]

First of all, as the noble Lord, Lord Myners, knows, the Governor of the Bank of England has set out very clearly his and the MPC’s analysis of the inflation situation and of their reasons for increasing by £75 billion the asset purchase scheme, so I am not going to answer for them. On unemployment, I would point out that in the second quarter of 2011 the internationally comparable employment rate for the UK was 69.4 per cent. That was the fourth highest employment rate in the G7, behind Canada, Germany and Japan and ahead of, among others, the US. We also had the seventh highest employment rate in the European Union in the second quarter. Of course we would wish to see growth increased, but we have to have sustainable growth. We should not put ourselves in the position of thinking that, on unemployment, we are out of line with our peer group. We are coming out of the deepest recession that we have known for many decades—and who caused that?

[Lord Martin of Springburn]

My Lords, I must tell the Minister that I welcome the fact that the Government are keen to see as many apprenticeships as possible. In that case, will he urge the authorities of this House and the other place to take on more apprentices and trainees? We have a fine building and many highly skilled people, and it would be good if we showed a good example by employing more apprentices and trainees in this very building.

[Lord Sassoon]

I am sure that the authorities of both Houses have heard what the noble Lord, Lord Martin of Springburn, has said. Of course, skills will be part of the supply-side reforms that we continue to work on going forward.

National Insurance Contributions Bill

Debate between Lord Sassoon and Lord Martin of Springburn

Wednesday 2nd February 2011 Lords Chamber

[Lord Sassoon]

My Lords, the scheme can be sensibly judged only when we get the full package of data on a national and regional basis that is broken down by the number of employees in the way that I have described. That will be published very transparently when there is a first basis of data on which to judge properly the impact of the scheme.

I want to address one last, important point from the noble Lord, Lord Martin of Springburn, about apprenticeships. Those have not been addressed otherwise in this debate but are of course relevant to the broader approach of the Government. His point is slightly detached from the main purpose of the Bill, but it gives me an opportunity to remind noble Lords that, in 2011-12, the Government will be providing £799 million for apprenticeships for 16 to 19 year-olds, which is an increase from the £780 million in 2010-11, and will fund 230,000 apprenticeship places for that age group. I trust that the noble Lord will recognise that this Government absolutely take on board the importance of apprenticeships. I could give the data if he wants, but I will not prolong the discussion now about the considerable amount of money that is also going into adult apprenticeships.

[Lord Martin of Springburn]

I welcome any help and initiative that is given to employing apprentices. On the remark about adult apprenticeships, it should not be forgotten that those who may have missed an opportunity when they left school should have an opportunity, as adults, to take up apprenticeships.

[Lord Sassoon]

Indeed, I think that in 2011-12 the sum for adult apprenticeships will be over £600 million. That accounts for something of the order of 430,000 apprenticeships, so the point is well made.

I am conscious of the time. I hope that I have been able to reassure noble Lords on the majority of the questions that they have raised on both parts of the Bill. I am grateful to the noble Lords, Lord McKenzie of Luton and Lord Davies of Oldham, for making it completely clear that the Opposition do not oppose this Bill. I am also grateful for having had the opportunity to explain the Government’s position on the issues in the Bill. The Bill enables the reduction of taxation on labour nationally, with extra support in targeted areas, and I ask the House to give the Bill a Second Reading.

Ireland: Financial Assistance

Debate between Lord Sassoon and Lord Martin of Springburn

Monday 22nd November 2010 Lords Chamber

[Lord Sassoon]

I am very grateful to my noble friend and completely agree with his sentiments. It is always good to be reminded that our economy has an important agricultural component to it and that that is part of what the Government’s possible contribution to this package is helping to protect.

[Lord Martin of Springburn]

My Lords, I welcome the help that is being given to Ireland. I am mindful of the fact that, in the city where I was raised, many sons and daughters of Ireland came to be our teachers, to look after our elderly and to be our doctors. Many of the large construction projects, such as the hydro dams, were built by Irishmen who worked so hard and were away from home.

The Minister said that the interest rates will be worked out, but for every point on the interest rates there will be more hardship for the people of Ireland. When the Chancellor announces the interest rates, will this House and the other place have a say in them?

[Lord Sassoon]

Interest rates and the other terms of the package will be negotiated between the Government of Ireland, the IMF and those leading the European side of the negotiations, so they will not be the subject of discussion in your Lordships' House, except that any bilateral element in the package from the UK will be subject to primary legislation, so there will be an opportunity to consider the terms of any bilateral loan.