Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Kelvin Hopkins

Tuesday 18th April 2017 Commons Chamber

[Mr Hammond]

On the hon. Gentleman’s last question, the location of the European Union’s agencies is clearly a matter for the European Union. We cannot credibly seek to leave the European Union and at the same time dictate to it where it should locate its agencies. On the initial items on his list, it will indeed be the UK Government’s objective, as we go into the negotiations, to protect our financial services sector.

[Kelvin Hopkins (Luton North) (Lab)]

Since the EU referendum, the substantial sterling depreciation has seen exports increase and the balance of trade deficit reduce from £13.7 billion in quarter 3 of last year to £5 billion in quarter 4. However, the Chancellor has repeatedly said that he is not concerned about the exchange rate. Is it not just plain wrong to dismiss the significance of the exchange rate?

[Mr Hammond]

I have never said that I was not concerned about the exchange rate. I have said that the Government do not take a view on what the appropriate exchange rate should be; that is very much a matter for the markets to determine. I am sure that the hon. Gentleman will have been delighted to note that my right hon. Friend the Prime Minister’s statement this morning has sent sterling up in the markets, demonstrating the confidence that the markets have in a future for this country under a Tory Government with a new mandate.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Kelvin Hopkins

Tuesday 17th January 2017 Commons Chamber

[Mr Hammond]

Of course. I thought that my hon. Friend was going to tell me that the company had chosen an EU location over London, so I am interested to hear him say that it has chosen Zurich—the only other possible non-EU location. I will look at the issue that he raises. It is our objective to have the most attractive location on this continent for inward investment and for foreign businesses to do their business.

[Kelvin Hopkins (Luton North) (Lab)]

Inflation is still below the Monetary Policy Committee’s official target, and the economy has long been at greater and more worrying risk of deflation than inflation. Will the Chancellor therefore be seeking to dissuade the Governor of the Bank of England from any thoughts of raising interest rates, which would simply inflict wholly unnecessary damage on the economy?

[Mr Hammond]

No. It is not for me to dissuade or persuade the Governor of the Bank of England in relation to interest rate policy. However, I will say this to reassure the hon. Gentleman: although this morning’s inflation figure—1.6%, as measured on the consumer prices index—is below the Bank of England’s target rate, the forecasts of the OBR and, indeed, the Bank suggest that the figure will meet and exceed the target rate later in the year.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Kelvin Hopkins

Tuesday 29th November 2016 Commons Chamber

[Mr Hammond]

I will certainly pass on my hon. Friend’s comments about that particular rail scheme to my right hon. Friend the Transport Secretary. My hon. Friend will know that we have a large programme of rail infrastructure in place and that the additional funding for the east-west rail link that was announced last week was outside that core rail programme. I hope that he will agree that the Oxford to Cambridge corridor represents a real growth opportunity for the south and the east of England to exploit Britain’s two best known universities and their world-class research reputations to enhance the productive capacity of our economy.

[Kelvin Hopkins (Luton North) (Lab)]

Since 23 June, there has been a significant depreciation of sterling and two announcements of major investments in UK motor manufacturing. The prospects for investment in UK manufacturing more widely are now much improved. Will the Chancellor be seeking to ensure that the more sensible exchange rate welcomed by Lord Mervyn King, among others, is sustained?

[Mr Hammond]

No. It is not the Government’s business to sustain or manage the exchange rate in any way, as the hon. Gentleman very well knows. We have an inflation target, but exchange rates are set by markets and reflect market views about the economy and expectations of the trajectory of the economy in the future. He is absolutely right to observe that, over the past six months, we have seen some remarkable endorsements of the British economy through large inward investment decisions made by foreign inward investors.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Kelvin Hopkins

Thursday 15th September 2011 Commons Chamber

[Kelvin Hopkins (Luton North) (Lab)]

T9. In awarding the Thameslink contract, did the Secretary of State take into account Siemens’ industrial relations record? Siemens’ global business strategy has been described as aggressively anti-union, and staff currently working for First Capital Connect on the existing Thameslink bid have not been reassured by the Government that their terms and conditions will be protected by the Transfer of Undertakings (Protection of Employment) Regulations 2006 should they transfer to Siemens. Will he reassure those workers and the House that TUPE will apply in such circumstances?

[Mr Hammond]

My understanding is that TUPE will apply in such circumstances. For the record, Siemens employs 16,000 people in this country, many—indeed, I think most—are represented by the Unite union, and my understanding from the inquiries that I have made is that relationships between the union that represents them and the company are extremely good.

McNulty Report and West Coast Rail

Debate between Lord Hammond of Runnymede and Kelvin Hopkins

Thursday 19th May 2011 Commons Chamber

[Mr Hammond]

As I said earlier, the intention is to be less prescriptive. Train operators already have the freedom to de-designate first-class carriages and reconfigure their trains if they want to, and all the new Pendolino cars that will be inserted in existing nine-car sets will be standard-class carriages. I do not want to talk about imposing a specific duty on operators, but they will have to deliver on targets to reduce overcrowding, and we have powers to force them to take action if they do not.

[Kelvin Hopkins (Luton North) (Lab)]

I had the pleasure of meeting Sir Roy McNulty on two occasions during his consultation. I put to him the points made by Tom Winsor, the former rail regulator, that British Rail worked miracles on a pittance and that when the railways were handed over to the privateers, they were handed over “in good order”—his words. Also, the Catalyst report recorded BR as having the highest productivity of all the railways in Europe. BR was desperately underfunded, with not enough investment, but it worked miracles on a pittance. I also put it to Sir Roy that the staggering rise in costs that has occurred since privatisation is a direct result of privatisation. I personally believe that it is pie in the sky to think that we will bring those costs down without public ownership again. When is the Secretary of State going to look at that again?

[Mr Hammond]

I am not. I think the hon. Gentleman suffers from the disease—which I have noticed is quite widespread—of taking a rose-tinted retrospective view of British Rail. People were quick enough to criticise and complain about British Rail’s performance when it was operating; now, at 15 years’ distance, that era suddenly appears to have been some halcyon period of British excellence. The hon. Gentleman is right that British Rail operated the railway on a shoestring at relatively low cost, but in doing so it built up a tremendous legacy of under-investment and disregard for safety risk, the terrible consequences of which we saw only too clearly in the late 1990s and the early years of this century.

Rail Investment

Debate between Lord Hammond of Runnymede and Kelvin Hopkins

Thursday 25th November 2010 Commons Chamber

[Mr Hammond]

We expect that additional carriages will be delivered to the northern and trans-Pennine franchises, but my hon. Friend will understand that these are commercial matters and that we have to enter negotiations with the franchisees as single-tender actions. We have to negotiate with them on the reimbursements they envisage for operating those additional carriages, so it is not possible to give him a precise number today because that would remove our negotiating power in the franchise discussions.

[Kelvin Hopkins (Luton North) (Lab)]

Thousands of my constituents travel every day by Thameslink, as do I. The Secretary of State has disappointingly delayed this scheme by two years, euphemistically describing the delay as “reprofiling”. He has specifically mentioned London Bridge, but what about Blackfriars, which he and I have visited? Will he at least confirm that the Blackfriars interchange with the Circle line will be completed on time and will not be delayed?

[Mr Hammond]

My understanding is that, yes, the station’s new interchange with the Circle line will be completed by the end of next year and that 12-car train-running through Blackfriars will begin at that time. His constituents will see the first tangible benefits from the Thameslink project at that time.