Oral Answers to Questions

Debate between Lord Hammond of Runnymede and David Nuttall

Tuesday 25th October 2016 Commons Chamber

[Mr Hammond]

The Government can of course support and enable exporters, but we cannot do their job for them. It is for British exporters to make their businesses competitive and to go and sell their wares around the world, but we will do everything we can to support them in that endeavour.

[Mr David Nuttall (Bury North) (Con)]

Does my right hon. Friend agree that unless, bizarrely, the European Union were to impose trade sanctions on the UK, there would be absolutely nothing to prevent us from having access to the single market when we leave the EU?

[Mr Hammond]

My hon. Friend is right in the sense that every nation that is a member of the World Trade Organisation, as we are, has the right to access other members’ markets on WTO terms. However, WTO terms would be quite challenging for some of our industries. For example, in the automotive industry, WTO terms imply a 10% tariff on cars entering other markets.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and David Nuttall

Tuesday 12th July 2016 Commons Chamber

[Mr Hammond]

I am unsure whether the two issues need to be prioritised. They can both be pursued in parallel. The decision to renew our nuclear deterrent is quite separate from the negotiations that we will be having with the EU, including negotiations to ensure the rights of EU nationals living in the UK and the reciprocal rights of UK nationals living in EU countries.

[Mr David Nuttall (Bury North) (Con)]

Regardless of whether the Scottish Government are involved in the negotiations, will the Secretary of State confirm that the negotiations are purely about us leaving the EU and not some sort of renegotiation of our terms of membership that will result in a halfway house where we are half-in and half-out of the EU?

[Mr Hammond]

Yes, I can confirm that. The next Prime Minister has made it clear that Brexit means Brexit: we will be negotiating our exit from the EU. However, we will of course also seek to negotiate an agreement between the United Kingdom and the EU 27 to regulate our trade and other relationships with the EU.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and David Nuttall

Tuesday 12th January 2016 Commons Chamber

[Mr Hammond]

The Prime Minister has been clear throughout that once we have an agreed deal, he will make a recommendation based on his assessment of the best interests of Britain. That is what drives him; that is what will determine the recommendation he makes.

[Mr Nuttall]

Many people are suspicious about the seriousness of this renegotiation when three of the so-called demands were accepted without any negotiation at all. Why, for example, did the Government bother to ask for a cut in red tape and for more competitiveness when the European Council has made it clear—in European Council after European Council in recent years—that that is exactly what it intended to do anyway?

[Mr Hammond]

It is true that we have seen, particularly under the present Commission, some very welcome moves to address some of the measures that make the European Union increasingly uncompetitive in the global market. But we are not seeking to get a political fix by one Commission: we are looking for an institutional restructuring that cements these arrangements for the future to ensure that the direction of travel remains one that the British people can be comfortable with and that will benefit the British economy and this country for the future. That is what we are going to do.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and David Nuttall

Tuesday 20th October 2015 Commons Chamber

[Mr Hammond]

We expect that some of the changes that we are seeking—by no means all, but some—will require treaty change. We are exploring in technical discussions with the Commission’s lawyers how we might enter into binding arrangements ahead of treaty change that will have the effect of binding our partners into the agreements they have made.

[Mr David Nuttall (Bury North) (Con)]

17. Can the Foreign Secretary confirm that apart from some technical changes relating to the right of EU citizens to claim welfare payments, the basic principle of free movement of people is not going to change in the renegotiations?

[Mr Hammond]

The basic principle of freedom of movement to work is not being challenged, but I disagree with my hon. Friend that changes to access to welfare are merely technical. The point was made very well that access to extraordinarily generous in-work benefits effectively distorts the labour market and creates a pull factor towards working in the UK that we need to reverse.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and David Nuttall

Tuesday 2nd December 2014 Commons Chamber

[Mr Philip Hammond]

The hon. Gentleman’s timeline merely serves to underscore how complex, difficult and intractable the problem is. Our commitment to a two-state solution is loudly expressed at every opportunity—no one can be in any doubt about it—but, as the Under-Secretary of State for Foreign and Commonwealth Affairs, my hon. Friend the Member for Bournemouth East (Mr Ellwood) has made clear, recognition is a tool to be used in trying to bring about the peace settlement all hon. Members ardently desire.

[Mr David Nuttall (Bury North) (Con)]

May I just say what a great school Aston academy is? Of course, it was Aston comprehensive when I went there, but I will not ask about that.

Does the Foreign Secretary agree that millions of people around the country will have taken the Prime Minister’s speech last week on immigration as setting out that the revision of the rules on benefit claimants would be a red line in the renegotiation?

[Mr Hammond]

I am happy to agree with my hon. Friend both on Aston academy and on the Prime Minister’s speech last Friday. The right hon. Member for Paisley and Renfrewshire South (Mr Alexander) called for clarity on our agenda with the European Union. He got clarity from the Prime Minister on Friday, but I have not heard him acknowledge that.

IT Systems (Army Recruitment)

Debate between Lord Hammond of Runnymede and David Nuttall

Tuesday 14th January 2014 Commons Chamber

[Mr Hammond]

I have heard Capita referred to as a lot of things, but not normally as “smaller and leaner”. The hon. Gentleman is referring to precisely the tension that I mentioned a few moments ago—between the desire to allow smaller players to come in, provide IT solutions to the Government and utilise existing IT solutions, and the desire to ensure that the integration risk lies with the supplier. My view is that the Government are poor at managing integration risk, and I suggest that a solution that may look superficially good value, but which transfers integration risk to Departments, is probably to be viewed with some suspicion.

[Mr David Nuttall (Bury North) (Con)]

The Secretary of State explained that the interim solution will lead to an improvement in recruitment numbers over the next few weeks, and that we should start to see that improvement come through. Will he therefore explain why the interim solution is not capable of being turned into a much cheaper long-term solution?

[Mr Hammond]

There are a number of elements to that. I said that potential recruits seeking to access the system will notice an improvement in the quality of the IT platform, principally because the front end—the web-based portal through which they will access the system—will be replaced at the end of January by a system that is now running but still being trialled before it goes live. The system will work, but that is by applying additional manual resource, which, as I have already told the House, is costing us £1 million a month. The purpose of the partnering contract is to take about 1,000 personnel who were involved in the administration of recruiting out of that role, and save about £300 million a year. In the long term we still need to harvest that saving, and it will be necessary to have a proper ICT solution to do that.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and David Nuttall

Monday 19th December 2011 Commons Chamber

[Mr Hammond]

The Government recognise the unique and important role played by the armed forces, which is why we doubled the operational allowance to £5,280 tax free, why the incremental pay system will continue during and after the pay freeze, and why we have exempted the armed forces from the average 3% increase in pension contributions that public sector workers will pay. I recognise the concern that the hon. Gentleman expresses, and I have discussed it with the Armed Forces Pay Review Body. The proposals that the Chancellor announced in the autumn statement for continued pay restraint after the freeze include flexibility for the Ministry of Defence to address specific problem areas if we find we are losing, or failing to recruit, specialist staff.

[Mr David Nuttall (Bury North) (Con)]

What does my right hon. Friend think will be the effect on the morale of our armed forces personnel of their pay being frozen this year, while many people on benefits are being given a 5.2% increase?

[Mr Hammond]

My hon. Friend will recognise that by doubling the operational allowance for the armed forces, exempting them from the pension contributions increase and continuing the incremental pay system, we have sent a very important signal to them about the importance that we attach to them. I think that most members of the armed forces understand that we are facing some very tough decisions in order to get the MOD budget back on track and ensure a sustainable future for our armed forces, and that the restraint was necessary to achieve that.