Economic Policy

Peter Bone Excerpts

Monday 25th February 2013 Commons Chamber

[Mr Osborne]

Unfortunately the hon. Lady’s list did not include the shadow Chancellor, so I cannot give her an answer.

[Mr Peter Bone (Wellingborough) (Con)]

I can guarantee that in the Dog and Duck in Wellingborough they will not be talking about Moody’s. They might be talking about the lowest council tax in the country or the thousands of homes to be built in Wellingborough East, but does the Chancellor agree that they are most likely to be discussing the 2,000 new jobs that will be created by the Skew Bridge development, which will bring leisure and retail facilities to my town?

[Mr Osborne]

I think they will be talking about the new jobs being created at Skew Bridge and those being created across our economy as the private sector grows. I was in the west midlands on Friday, where I think there has been a 67,000 increase in jobs in the private sector over the past year. That is worth remembering, because the number of jobs in the private sector in the west midlands during the boom years before the financial crisis actually shrank under the previous Labour Government.

Autumn Statement

Peter Bone Excerpts

Wednesday 5th December 2012 Commons Chamber

[Mr Osborne]

Out-of-work benefits have increased by 20% over the last five years, while average earnings in the public and private sectors have gone up by 10%. We have to make difficult decisions, and I think it is a fair decision to uprate working age benefits by 1%. We are also uprating the higher-rate tax threshold by 1%. This is a fair decision. If the right hon. Gentleman can recommend other ways of taking substantial sums out of the Government’s bill, let him come forward with them—and I still have not heard from a single Labour MP whether they will be voting for or against the welfare uprating Bill.

[Mr Peter Bone (Wellingborough) (Con)]

One way the Chancellor could produce a lot of money at no expense to the British economy is, of course, by not going ahead with overseas aid at 0.7% of gross national income. How much additional borrowing will be required to meet that commitment?

[Mr Osborne]

My hon. Friend and I have a genuine disagreement on this matter. I think it is right for this country to honour its obligations to the world’s poorest. I think we should be proud to be a part of, and support, what will be the first Government in British history to reach the 0.7% target. I have had to rebase the aid budget because of the GDP forecast, as I do not want to spend more than 0.7% of national income. As a result, the Department for International Development has had one of the biggest adjustments to its budget of all Departments.

Inward Investment (Wales)

Peter Bone Excerpts

Thursday 29th November 2012 Westminster Hall

[Geraint Davies]

There is nothing wrong with fish and chips—

[Mr Peter Bone (in the Chair)]

Order. Chuntering should not occur at all and should definitely not be heard from those sitting behind the Minister.

[Geraint Davies]

That is kind of you, Mr Bone; thank you.

I want to mention the issue of city regions. In terms of working together in a critical mass in a global marketplace, one benefit of trying to bring together the four local authorities of Swansea, Neath Port Talbot, Pembrokeshire and Carmarthenshire, plus the universities and industry, to argue the commercial case as well as the social case for electrification of the railway to Swansea was that there was a refocusing on the common interests of that area.

I am very pleased that the Welsh Government have taken the initiative in doing a consultation on city region status and have given the go-ahead for the Swansea Bay city region to move forward. Swansea has always been seen to be, to a certain extent at least, in the shadow of Cardiff, so it is interesting to note that Cardiff itself contains about 300,000 people, but the continuous urban footprint of Neath Port Talbot and Swansea, going to Llanelli, is one of about 400,000 people —the biggest urban footprint in Wales. We can work together within that and within Carmarthenshire, haloing out to Pembrokeshire and, indeed, Ceredigion—there is not really anywhere to go beyond that. The hon. Member for Ceredigion (Mr Williams) is very welcome in the Swansea Bay region. I am talking about working together to have a diverse skills base. Working with the universities and the local authorities to get coherence, focus and value for money is very important.

I have already welcomed the rail electrification. It was regrettable that we had to work so hard to get the Government to agree to an extension from Cardiff to Swansea, but that was very good news. As I have said, the next thing that we want is to be able to say that we have super-connectivity.

Of course, the Swansea Bay brand has been created partly through football. The Minister will know that Swansea won 3-1 against West Brom last night. That sort of news is transmitted to 600 million people in 200 countries. That is important because the name Swansea is then known. Increasingly, people are hearing of Swansea who may not even have heard of Cardiff. That is amazing.

--- Later in debate ---

[Several hon. Members]

rose—

[Mr Peter Bone (in the Chair)]

Before I call the next speaker, hon. Members might find it useful to know that I anticipate two Divisions in the House at 2.30 pm. If that happens, I will suspend the sitting until 10 minutes after the start of the second Division.

Oral Answers to Questions

Peter Bone Excerpts

Tuesday 6th November 2012 Commons Chamber

[Sajid Javid]

This Government rightly commissioned the report because we believe that Lord Heseltine has a lot of experience in that area. We will study it carefully and will respond in due course.

[Mr Peter Bone (Wellingborough) (Con)]

Does the Minister realise that unemployment in my constituency went down last month? Does he also realise that in the neighbouring constituency, Corby, the unemployment level fell by 5%? Does that not show that the Conservative-led Government is succeeding in Northamptonshire?

[Sajid Javid]

My hon. Friend is absolutely right. In the first two years of this Government, the private sector created 1 million new jobs whereas in the last 10 years of the previous Government the sector created about half of that figure.

Multiannual Financial Framework

Peter Bone Excerpts

Wednesday 31st October 2012 Commons Chamber

[Greg Clark]

I normally agree with my hon. Friend, who is one of the House’s sages, and I can say that I agree in every respect with the amendment that he tabled.

[Mr Peter Bone (Wellingborough) (Con)]

The Government are therefore making a most generous concession, so will my right hon. Friend make things absolutely clear to the House? My hon. Friend the Member for North East Somerset (Jacob Rees-Mogg) spoke about a freeze, which would not allow for a cash increase. Is that the Government’s position?

[Greg Clark]

Our position is that we want the EU budget to be cut, but part of the negotiating mandate that the Prime Minister has agreed is that the very most that we would accept would be a real-terms freeze. However, we want a cut, as I shall explain.

The Commission—this time with the European Parliament—has proposed an increase of 6.8% for the 2013 annual budget. That is for a year in which the IMF forecasts that growth throughout Europe will average 0.5%. My view, and that of the Government, is that such a demand constitutes a grotesque imposition.

--- Later in debate ---

[Mr Peter Bone (Wellingborough) (Con)]

It is a great pleasure to follow the hon. Member for Vauxhall (Kate Hoey). When the House can hear speeches from the hon. Lady, the hon. Member for Rhondda (Chris Bryant) and my hon. Friends the Members for Stone (Mr Cash) and for Rochester and Strood (Mark Reckless) and we all agree, that is when the House is at its best.

I am delighted if Opposition Members want to vote for a Conservative amendment. That shows great credit to them. I hope that all Members on this side will vote for a Conservative amendment. The problem is that the motion is not a Conservative motion but a coalition motion. I am quite convinced that if we were not in coalition with the Liberal Democrats, the Prime Minister would be voting for the amendment.

[Chris Huhne (Eastleigh) (LD)]

It has nothing to do with whether this is a coalition motion or a Conservative amendment. It is about realism versus unreality. As the hon. Gentleman knows, if someone goes into a negotiation telling people exactly what they are going to do, with no room for movement whatsoever, why on earth should they bother talking to them? We heard the reality from the hon. Member for Stone (Mr Cash) and that is that he, like the hon. Member for Vauxhall (Kate Hoey), wants a crisis for the European Union. This has nothing whatsoever to do with these negotiations.

[Mr Bone]

I must apologise to the Liberal Democrats, because they obviously agree with everything we have said tonight and think that we must strengthen the Prime Minister’s hand in the negotiations. I apologise for giving the false impression that they were going to vote with the Government tonight.

One problem is that this is a Westminster village affair, and I want to know what is happening on the streets in my patch. There is a lady who has been walking the streets of the Corby constituency for eight weeks or so; her name is Christine Emmett and she just happens to be the Conservative candidate there. I wondered what the feedback was on the ground in Corby, and she says:

“I voted ‘no’ to the EEC in 1975, as I did not trust the Common Market (as it then was) would not grow into a political alliance which would diminish our control over our own affairs. The British people voted ‘yes’ and we have lost control of some essential legislation”.

She goes on to say:

“The present terms of membership are unacceptable and unaffordable”—

she speaks for the people in my constituency, too.

[Several hon. Members]

rose—

[Mr Bone]

I shall press on because other Members wish to speak and I want to be as brief as possible.

I think that every Member, whether they vote for the Government’s motion or not, wants a reduced budget. We all think that there should be a real reduction in the EU budget, because how can we tell our constituents that they are suffering cuts so that we can give the European Union money to waste? We have a superb Minister at the Dispatch Box listening to the debate. At its conclusion, I genuinely hope that the Government will be able to accept this modest amendment. Would not that be great? The British people, instead of seeing artificial division, would then know that the whole House was in favour of a reduced budget in real terms, albeit perhaps with the exception of Plaid Cymru Members, who might have done a dirty deal somewhere along the line.

The real issue that I want to talk about is the rebate. I shall give Prime Minister Blair the benefit of the doubt, because when he gave up the rebate, he thought that there would also be a massive cut in common agricultural policy payments, meaning that our net contribution would not go up. According to figures from the House of Commons Library, during the following five years of the Labour Government, our net contribution to the EU was £16 billion. That is a lot to pay for membership of the EU, but unfortunately, since Tony Blair left, our rebate has gone down and there has been no reform of the CAP, so over the period of the coalition Government, as things stand—even without a budget reduction—we will be paying £36.4 billion to be a member of this club. How can we say that we will pay £36.4 billion, and then that we will pay some more to allow for inflation?

[Mr Aidan Burley (Cannock Chase) (Con)]

Is my hon. Friend aware that the “more” figure that we will pay under the Government’s inflationary proposals is £1.3 billion over just the next two and a half years? How many nurses, doctors and teachers would that buy?

[Mr Bone]

I agree entirely.

The issue tonight is not whether I am happy to vote with the hon. Member for Rhondda—

[Chris Bryant]

You always are.

[Mr Bone]

There are no two people in the House who disagree more on the European Union than the hon. Gentleman and I. Today, however, we are voting for what the British people want. When I talk to people in Rushden or Wellingborough, they cannot understand why their council services are being cut at the same time as we plan to spend billions more on the European Union.

Cutting away the rest of the rhetoric, hon. Members must decide whether they will vote for a Conservative amendment calling for a real reduction in the budget, or a coalition motion that effectively calls for an increase, because it allows for inflation. I am sure that, secretly, the Prime Minister would like the whole House to vote for the Conservative amendment, because it would strengthen his hand in the negotiations enormously if he could say, “There is a united House of Commons demanding a reduction in the budget.”

[Several hon. Members]

rose—

HMP Wellingborough

Peter Bone Excerpts

Wednesday 5th September 2012 Westminster Hall

[Mr Peter Bone (Wellingborough) (Con)]

It is a great pleasure to serve under your chairmanship, Ms Dorries.

I welcome the Under-Secretary of State for Justice, my hon. Friend the Member for Kenilworth and Southam (Jeremy Wright), the new Prisons Minister, to the debate and congratulate him on being appointed to such an important ministerial role. I know from personal experience that he will bring energy, integrity and common sense to his position. I appreciate that he will not have had time to acquaint himself with the situation at Wellingborough prison and that he will have to read a speech largely prepared by his officials, but I hope that the debate will allow him to reflect on the situation and postpone any immediate closure of the prison. It would be most unfortunate if the first action of a new Prisons Minister was to close the third most cost-effective prison in the country. When it was announced that Wellingborough prison was to be closed, I knew that 600 jobs were at risk in my constituency; I did not know that it would also lead to every Minister in the Justice Department losing his job. I would like to thank Mr Speaker for granting me this debate in the first week back after the summer recess.

At 9.30 am on 17 July, the House’s last sitting day before the summer recess, the Secretary of State for Justice announced the proposed closure of Wellingborough prison. I was given no prior warning about the decision and found out about the announcement only during a live BBC radio interview. That was an unacceptable divergence from parliamentary protocol and utterly disrespectful to me as Member of Parliament for Wellingborough; more importantly, however, it was disrespectful to my constituents.

By contrast, when Wellingborough prison was placed into market testing, the then Justice Secretary, the right hon. Member for Blackburn (Mr Straw), personally phoned me from Downing street at 6 am to inform me of the decision. He was gracious enough to warn me in advance of the announcement and to answer any of my questions on the matter. In addition, he made an oral statement to the House of Commons during which hon. Members from all parties, including myself, could ask him questions. That was a far cry from the miserable, secretive and back-handed action taken by the previous Secretary of State for Justice in this Government.

I am afraid that this is yet another example of Departments wanting to ignore Parliament, ignore scrutiny and avoid debate, and of the Executive thinking they know best and that anybody else’s ideas are irrelevant. They regard Parliament as an annoying irritant that should be avoided as much as possible and think that, when it cannot be completely avoided, policies should be rushed through with the absolute minimum scrutiny.

[Mr Philip Hollobone (Kettering) (Con)]

I congratulate my hon. Friend on securing the debate and on the excellent way he has run the campaign to save Wellingborough prison on behalf of his constituents. No constituency could ask for a more hard-working Member of Parliament.

In the light of all the bad practice that my hon. Friend has highlighted, is not this a wonderful opportunity for the new Minister to stamp his authority on his Department and his civil servants from day one, and to say clearly that what has gone on is not up to standard and that they should go away and think again? That would earn him the respect of the civil servants under him and force them to think again.

[Mr Bone]

I am grateful for the kind words of my hon. Friend and neighbour, and for his usual sensible advice to the Government, which I urge the Minister to take on board. The Minister’s mind must be in a whirlwind at the moment, given all the things that he has to deal with, but this is not just a little local matter—it needs to be addressed.

Immediately after I heard the announcement on the closure of Wellingborough prison, I applied to Mr Speaker’s office for an emergency debate under Standing Order No. 24. Although Mr Speaker was sympathetic to the important issue, he was unable to grant me an immediate debate, partly because the announcement was made on our last sitting day. It is rare for the Speaker to allow a Member even to make a Standing Order No. 24 application. Parliamentary protocol requires a Minister from the relevant Department about which a Standing Order No. 24 application is made to sit at the Dispatch Box and listen to it, yet the Ministry of Justice failed in this regard—no Minister was present. Yet again, this was gross discourtesy to Parliament.

The key reason given by the Ministry of Justice for the decision to close Wellingborough prison was cost. According to the Government, its closure would save the taxpayer £10 million a year and a further £50 million in renovation costs. However, if Wellingborough prison is so expensive to the taxpayer, why do the Government’s own figures show that it is the third cheapest prison in the country? The National Offenders Management Service annual report shows that there were 122 state-owned prisons in 2010-11, and that Wellingborough prison had an annual cost per prison place of £27,898, with the national average being £39,175. In other words, according to the Ministry of Justice’s figures, Wellingborough prison is £11,277 cheaper per prisoner than the national average—more than 28% cheaper. Wellingborough is therefore more than a quarter cheaper to run than the average prison in the country. Only a Department dominated by lawyers could think that closing Wellingborough prison would make good economic sense. Only lawyers could think that closing the third cheapest prison in the country on economic grounds would be right. If there is a need to close a prison, that should be an outdated Victorian prison with a higher cost per prison place.

It is estimated that £50 million is needed to renovate the prison but, as a chartered accountant, I am always wary of an estimated figure that happens to be a neat rounded sum. To me that is almost saying, “Let’s make up some huge figure to make it appear that Wellingborough is uneconomic.” I have looked into the economics of the capital investment and that is exactly what has happened. At this stage, I shall thank my researcher, Adam Trundle, for many of the facts and figures that I am using today.

First, the cost is a capital one, which would be spread over the useful life of the asset being built, which in this case is around 40 years. It would not be a revenue cost and it would not be £50 million a year. It would be only a small extra cost per prison place per year, and it might even work out that there would be a saving to the cost per prison place. If a new, modern building was built to replace the older 1960s part of the prison, the number of prison officers needing to manage that building would be dramatically reduced. There would be significant savings in the costs of lighting and heating, and significant savings in repairs. Instead of increasing revenue costs, they might actually be reduced. Even if there was no saving to the revenue cost due to running a new building—of course, that is nonsense, as there would be a significant saving—the cost per prison place at Wellingborough would increase by only around £2,000 per year, which would mean that Wellingborough prison would still be well below the national average for cost per prisoner place.

The Chancellor of the Exchequer is desperate to kick-start the economy into growth through capital infrastructure projects. The renovation of Wellingborough prison is therefore exactly the type of project that the Chancellor and the Government are looking for, so I do not think that the new Prisons Minister should cross the Chancellor at such an early stage in his ministerial career. If we had some joined-up government between the Ministry of Justice and the Treasury, the renovation of Wellingborough would be a win-win situation: the Treasury would get a quick and relatively inexpensive infrastructure project to boost jobs and the economy; while the Ministry of Justice would get a more energy-efficient and modern prison that would last for years.

In the response of the previous Secretary of State to my letter about the announcement on closing Wellingborough prison, he painted the prison as a 1960s borstal that was outdated, deteriorating and falling to bits. He did not mention, however, that half—actually, it is more than half—of the prison is less than a decade old, with modern facilities and the ability to hold 300 prisoners. In fact, the contractor for the new prison buildings at Wellingborough received a national award of excellence in 2006.

If the reason for closing the prison is because it was originally constructed in the 1960s, and that it is therefore outdated, although more than half of prison was built in the past 10 years, how does the Ministry of Justice explain two much older prisons that are close to Wellingborough—Leicester and Bedford—remaining open while the more modern Wellingborough prison is closed? Both Leicester and Bedford were constructed in the early Victorian era. They are also not as cost-effective as Wellingborough, as is shown by the Government’s figures. They both cost more than £50,000 a year per prisoner, which is £20,000 more than Wellingborough for each and every prisoner.

The following category C prisons—the same classification as Wellingborough—all cost more than £40,000 per prisoner place: Brixton, Bullwood Hall, Canterbury, Castington, Coldingley, Kennet, Kingston, Lancaster Castle and Shepton Mallet. If we were to close any one of those prisons, we would save more than £10,000 per prisoner place compared with Wellingborough. It is absolutely absurd to say that Wellingborough prison is being closed on the basis of economic cost.

Another reason that is given for allowing Wellingborough prison to be closed is the supposed decline in the prison population, but that comes after years of announcements by the Ministry of Justice that prisons were full and overcrowded, which forced the previous Labour Government to let out prisoners early before they had completed their sentences. The Ministry of Justice’s figures show that, in 2005-06, the prison population was 76,564 in 139 prisons throughout the country. In 2011-12, the prison population had increased to 86,638 in only 136 prisons. That represents a 10,000 increase in the prison population over six years, with the actual number of prisons declining. Today, the prison population is even higher—at 86,801. How can the Ministry of Justice claim that the prison population is falling when, in every year over the past decade, the Department’s own figures have shown a constant increase in the prison population? I suggest that the Ministry of Justice is as good at predicting the prison population as G4S is at hiring enough staff for the Olympics.

Last week, a review by the highly respected Prison Reform Trust claimed that almost two thirds of prisons in England and Wales were overcrowded. In fact, the trust said that there are 7,294 more prisoners than the system was designed to hold. Even with a supposed spare prisoner capacity of 3,500, the prison system will still be almost 4,000 places short to deal with overcrowding. The overcrowding is so severe that one of our closer neighbouring prisons, Leicester, is running at 171% of capacity—it has a designed prisoner capacity of 200, but it actually holds 342. The overcrowding means that there is a higher ratio between prisoners and prison staff, which leads to prison staff having less time to spend rehabilitating inmates, thus further increasing reoffending rates and putting more pressure on the prison system. Closing Wellingborough prison would only make an unacceptable situation even worse.

The governor and staff of Wellingborough prison have been recognised by the former Secretary of State for Justice and the former Prisons Minister for their excellent work improving the prison. The independent monitoring board reported that Wellingborough improved from being a level 2 to a level 3 prison, which is one of the highest levels possible in the prison system. Wellingborough prison has also moved from 123 out of 130 in the prison rankings to 93, because of the hard work and commitment of its governor and staff. The prison has also become far more cost-effective, with efficiency savings of 5% in 2011-12 and a further 3% planned this year. In fact, the number of staff members has reduced by 12 since Wellingborough prison was put into market testing, which shows how efficient the prison staff have been in maintaining high standards.

I should mention the determination of the prison staff to make those improvements to Wellingborough prison. They are following the debate carefully. Moreover, the local prison staff have ignored their national union to implement change, so they should be applauded by the Minister for their actions, not kicked in the teeth.

There has been overwhelming local support for keeping Wellingborough prison open. The most recent meeting of Wellingborough borough council unanimously passed a resolution condemning the Government’s decision to close the prison and supporting my campaign to keep it open. There was a united front from all political parties on the council in support of the resolution. Lynne Holcomb and Martin Fields have organised an energetic campaign to keep the prison open, and they organised the “Save the Prison” petition with 3,000 signatures that I presented to Parliament last night. There was a massive protest meeting in Wellingborough town centre on Saturday in support of keeping the prison open. There have also been community meetings that have been attended by me, the leader of Wellingborough council and other councillors. Even today there was a protest outside Parliament by prison officers, their families and members of the public.

I have a simple proposition for the new, excellent, understandable and understanding Minister, who takes on board arguments and acts accordingly. I request that the new Secretary of State for Justice postpones the decision to close the prison for at least six months and stops the transfer of prisoners from Wellingborough. That would allow time for a proper and fundamental review of the prison system throughout the country. It would also allow the costs and benefits of closing any prison in the country to be analysed to see what prison, if any, is suitable for closure. That would allow for a well-thought-out decision, and for the most expensive prison to be closed. It would also surely prove that there are no financial grounds whatever to close Wellingborough prison. Let us have a proper prison closure plan, if necessary, that is based on clearly identifiable costs, not a random knee-jerk closure of one prison. I firmly believe that this is the wrong prison being closed for the wrong reasons at the wrong time.

[The Parliamentary Under-Secretary of State for Justice (Jeremy Wright)]

It is a pleasure, Ms Dorries, to see you in the Chair. This is my first opportunity to speak with my new responsibilities. It is an even greater pleasure to be able to respond to my hon. Friend the Member for Wellingborough (Mr Bone). I congratulate him on obtaining this debate, and on how he presented his case. I agree entirely with the assessment by my hon. Friend the Member for Kettering (Mr Hollobone) of how he serves his constituents.

I want to put on the record the Government’s appreciation of the continued efforts of all those who work at HMP Wellingborough. Like front-line staff in prisons throughout the country, they do a huge amount of excellent work that is hidden behind prison walls. I want to make it clear that any decision to close the prison is not a reflection of their work or performance.

My hon. Friend the Member for Wellingborough knows that any decision to close a prison is not taken lightly, and is never easy. As he would expect, it follows a comprehensive evaluation process led by senior operational managers in the Department and in the National Offender Management Service. Any such decision deserves an explanation not just to him, but to those he represents and to those who have campaigned to keep HMP Wellingborough open. The way in which he heard about the announcement of the closure is, as he said, profoundly unacceptable. It should not have happened, and I apologise to him for that.

I want to explain why the decision was made, and to set out the context for the decision-making process. As my hon. Friend knows, it is the duty of any Government to ensure that the prison system retains sufficient capacity and resilience to manage all those committed to custody by the courts. I assure him and the House that neither the Secretary of State nor I, as the prisons Minister, will announce any reductions in prison capacity unless we are confident that that duty can be discharged. It is equally clear that the Government have a duty to their citizens to ensure that we make best use of public funds. As a result, we must ensure that we do not maintain an over-provision of prison accommodation or operate prisons that are uneconomic. My hon. Friend should know that there has been the sort of comprehensive analysis that he says he wants across the system to determine which prisons those should be.

The prison system is necessarily complex, as my hon. Friend understands it must be to meet a variety of needs. They include being able to receive new prisoners direct from courts throughout England and Wales, providing health care and education, tackling deep-rooted, dangerous and harmful behaviour, and providing specialist intervention to particular groups of prisoners. Maintaining a wide geographical spread of prisons and a functional balance that meets the changing needs of the prison population is essential. By doing so, we remain able to carry out the punishments by the courts, to maintain strong security to protect the public, and to provide opportunities for different types of offenders to reduce the likelihood of them committing further crimes. Accordingly, individual prisons are robustly assessed to determine whether their closure is operationally viable before a recommendation is made.

My hon. Friend has reminded me that this is my first day in the job with all the constraints involved. A large proportion of my career at the Ministry of Justice so far has been spent on HMP Wellingborough, and I have, as he would expect, asked some questions about the decisions that have been made. I am satisfied that the process has been followed correctly, and that all the necessary criteria have been met. I know that that will discourage him from continuing his campaign, and I fully understand that. I and, I am sure, my right hon. Friend Secretary of State for Justice will be happy to discuss the matter with him further, but I want to be realistic.

[Mr Bone]

I am grateful to the Minister for reading out the notes from his officials, and he is doing exceptionally well. I thank him for offering to have a meeting with me and perhaps the Secretary of State. Can that meeting take place soon? Otherwise, there will be no point in having it.

[Jeremy Wright]

At this early stage in my career, I cannot speak for my diary, let alone for that of the Secretary of State. However, I have no doubt that if my hon. Friend, with all his persistence and eloquence, asks the Secretary of State for a meeting, he will get one as soon as it can be arranged.

[Jeremy Wright]

My hon. Friend makes a tempting offer. This may be day one for me in the job, but it is not day one of consideration of the issue. If he is patient, I will try to explain the work that has been done, and the reasoning that led us to the decision. I take him back to July when the then Secretary of State announced the closure of HMP Wellingborough. The gap between the prison population and our useable capacity then stood at 3,500 places, which represented the most headroom experienced in the prison estate since early 2011, with more empty prison places than there were before last year’s announcement of the closures of HMP Latchmere House and part of the Hewell cluster, formerly known as HMP Brockhill. It also represented more unused places than were available immediately before the serious public disorder in August 2011, and I remind the House that the prison system coped admirably with the unprecedented prison population growth experienced following those events.

The latest figures demonstrate that that degree of headroom has widened further, with a population of 86,708 on Friday 31 August against a useable capacity of 90,897, a gap of more than 4,100. Throughout this year, the capacity of the prison system will increase further as new accommodation at HMP Oakwood and HMP Thameside, with a total of more than 2,500 places, becomes fully operational. The provision of new accommodation is part of our wider strategy to improve prison conditions, to reduce operating costs, and to ensure that the prison system is able to provide opportunities for prisoners to work and to reduce their risks of further offending. That goes entirely to the point that my hon. Friend the Member for Wellingborough made about capacity within the system. Accordingly, it is clear that the loss of 588 places at HMP Wellingborough will not materially affect the Government’s ability to accommodate all those who are committed to custody by the courts in the foreseeable future.

My hon. Friend made the point that even if a prison closure is necessary, it need not be the prison in his constituency. Indeed, he has previously made similar arguments forcefully. The reason for closing HMP Wellingborough is, as he knows, linked to what happened when the running of that prison was put up for competition by the previous Government. He will recall that the reason for withdrawing HMP Wellingborough from that competition has been known to the House for some time. It was central to the decision on closure, and is summed up in the comments of the then Secretary of State:

“During the preparations for the bid it became apparent that competition could not produce improvements at HMP Wellingborough without significant capital investment to secure its long-term viability. In the current financial climate, this is clearly not a tenable proposition, so I took the decision to remove it from the competition process.” —[Official Report, 31 March 2011; Vol. 526, c. 526.]

It has taken longer than we would have hoped to determine the prison’s future, not least because of the significant pressure placed on the prison estate in the aftermath of last year’s public disorder. However, in the intervening period, the continued deterioration of the site has only served to make the need for a decision more pressing. They key point is that the cost of running the prison is not solely operational, as there are also costs for repairs and for bringing the prison up to an acceptable standard.

My hon. Friend mentioned that Wellingborough is the third most cost-effective prison in the country, but as ever, it depends on how that is calculated. That statistic relates to the prison’s running costs; it does not take account of the capital costs required to deal with the backlog of improvements that are needed on site. He is right that Wellingborough has an annual budget of £11.6 million for 588 places, which does not compare unfavourably with other prisons of the same type. However, as it was built in the 1960s, the physical fabric has deteriorated over the years.

[Mr Bone]

I hope that the Minister does not believe everything he is being told. More than half the prison was built in the last 10 years and it is exceptionally modern. The renovations that he mentions are about knocking down and completely rebuilding the old part of the prison. It is not quite as he is explaining it to this Chamber.

[Jeremy Wright]

In my understanding, it is true that almost half the current prisoner accommodation was built in the last 12 years, but sadly, that accounts for less than 25% of the prison’s overall infrastructure. It is not simply the accommodation that needs bringing up to standard; many other improvements are required and I shall come back to those, if my hon. Friend will forgive me.

My hon. Friend mentioned the figure of £50 million, which is the amount required in a major refurbishment programme. He is right that there is no such thing as an accurate, round number in these matters—if he wants the accurate figure, however, I understand that it is £49.7 million, and I hope he will forgive that being rounded up a little. The prison is increasingly unsafe, with poor services and infrastructure.

The proximity and size of the financial liability has presented prison management with a decision. We could either proceed with the outstanding and necessary refurbishments, which, as I have said, are estimated to cost up to £50 million. That would improve the wings that were not built in the past 12 years—wings A to E—and includes the services infrastructure. That would happen at a time when there is sufficient prisoner accommodation in the rest of the prison estate and many other pressures, as my hon. Friend knows, on the Department’s budget. Alternatively, we could close the prison and use the capital to better effect elsewhere.

Prison closures are only part of the Department’s wider strategy, and we will discuss them at length on another occasion. I hope that my hon. Friend will accept—if not today, at subsequent meetings—that we have looked at this very carefully. I am sorry that I cannot offer him better news this afternoon. I can assure him, however, from what I have been able to determine, that careful consideration has been given to the matter.

Changes to the Budget

Peter Bone Excerpts

Monday 11th June 2012 Commons Chamber

[Mr Gauke]

The hon. Lady says that the Government were desperate for money-making measures. Why does she think we needed such measures? She might have noticed that her party left the biggest peacetime deficit we have ever faced. The extraordinary thing about the Labour party is that it always believes that there is a magic money tree that we can get money from. I am afraid, however, that we have to take steps to reduce the deficit. Even with these changes, we remain on the course that we set out. This was a fiscally neutral Budget, and we are not taking risks with the public finances, which is the U-turn that the Opposition want us to take.

The hon. Lady asked how a Budget could be changed and why we had departed from what it set out to do. I should like to remind the House what happened four years ago. In 2007, the then Chancellor of the Exchequer announced the doubling of the 10p rate. A year later, his successor had to come to the House—not in a Budget, but weeks later—and set out additional tax cuts of over £3 billion. They had got their policy wrong and they had destroyed their credibility by doubling the income tax rate for the poorest earners in this country. That is an example of a Budget shambles.

[Mr Peter Bone (Wellingborough) (Con)]

The Government should not apologise for making these U-turns. This is parliamentary democracy at work. It is because Members of this House argued strongly for changes in the Budget that such changes have occurred. Let us contrast that with what happened under the last Government. When their own Back Benchers asked for changes, the Government would not agree to them. This Government should be proud of these changes; they should not apologise.

[Mr Gauke]

I am grateful to my hon. Friend for his characteristically helpful intervention.

IMF

Peter Bone Excerpts

Monday 23rd April 2012 Commons Chamber

[Mr Osborne]

The right hon. Gentleman is quite right to draw attention to the fact that, although we have been talking a lot about the eurozone, the IMF does a great deal of important work in low-income countries. As I said, there are 53 programmes, of which only three—albeit they are very large ones—are in the eurozone. At the IMF I specifically intervened to ask that the IMF’s windfall profits from recent gold sales be used to reduce the interest costs for low-income countries that undertake IMF programmes, to make sure that they have access to the increase in resources we are talking about today.

[Mr Peter Bone (Wellingborough) (Con)]

The only way for Spain, Italy, Portugal and Greece to become competitive and get their economies growing again is through a return to national currencies. Does not the Chancellor agree that it is a bonkers policy to pour billions and billions of UK taxpayers’ money into supporting the failed euro?

[Mr Osborne]

We are not pouring money into some eurozone bail-out fund. We are providing a loan to the International Monetary Fund. I hear what my hon. Friend says about the decision, but every single previous Government have been part of increases in IMF resources—in 1983 and in 1990, under Lady Thatcher’s Government, we contributed to increases in IMF resources. He says that these countries are lost causes, but in Portugal, where very difficult decisions have been taken, exports are up by 7% and the current account deficit has been reduced; Ireland has gone into a current account surplus and Spanish exports are up. Of course they are having to make the adjustments in a brutal way, by real cuts in wages rather than a currency devaluation, but that is the consequence of being in a single currency. The Governments in those countries, with, in most cases, the support of the public now, are taking those difficult decisions. It is interesting that even in Greece, which is probably the most traumatically affected of those countries, there is a clear and overwhelming public majority for Greece staying in the euro.

Oral Answers to Questions

Peter Bone Excerpts

Tuesday 6th March 2012 Commons Chamber

[Mr Gauke]

There are many marketed schemes that HMRC is convinced do not work, and that will be established in the courts. I suggest that those who are sometimes persuaded by claims that a particular scheme will work should treat them with caution. However, the Government are determined to crack down on stamp duty land tax avoidance. We took steps in the last Budget, we took steps in the autumn statement strengthening the disclosure regime, and there may well be more to come.

[Mr Peter Bone (Wellingborough) (Con)]

When the banks begin to make profits again, they will offset the losses that they made when they got us into a total mess, and will avoid paying tax. Whenever companies are paying tax on their profits, the banks will be avoiding tax on theirs. Will the Government look at that?

[Mr Gauke]

There are times when taxpayers engage in aggressive avoidance and we put a stop to it, as we did last week. However, the offsetting of losses is not novel—it is a long-standing element of the tax system—and, although of course we keep all such matters under review, the legitimate use of losses does not necessarily count as aggressive avoidance.

Tax Avoidance (Public Servants)

Peter Bone Excerpts

Thursday 2nd February 2012 Commons Chamber

[Danny Alexander]

What we had was a situation where, as the hon. Gentleman rightly says, for many years—including for many years under the previous Government —the Student Loans Company was in a mess. This man was brought in to run it, and in fairness I think it is widely agreed that he has done a good job of turning it around. In the context of this conversation, I hope that the hon. Gentleman would also recognise that.

[Mr Peter Bone (Wellingborough) (Con)]

I do not think there is a problem with what was set up; the problem is that the Inland Revenue allowed it to happen. I do not understand how such a contract can be awarded to somebody working full time. Unless there was some agreement to the avoidance scheme by the Revenue, it is not the law that is wrong, but the interpretation by the Revenue.

[Danny Alexander]

It is precisely those sorts of issues that the review will seek to examine and properly understand, and I am sure that the Public Accounts Committee might wish to take an interest in that issue.