The Economy

Alex Chalk Excerpts

Thursday 22nd March 2018 Commons Chamber

[Jim Shannon]

It would be remiss of me to say other than that the value of the pound has enabled our exports to grow and our manufacturing base to maintain its position. The hon. Gentleman is absolutely right.

The DUP’s confidence and supply agreement with the Conservative party has brought in money for everyone in Northern Ireland, regardless of whether they are Unionist, nationalist or anything else. Everybody gains from that agreement.

The House has seen progress on business rates and the small business rates relief scheme. I am very pleased that the Government have continued to ensure that that happens, because it will definitely bring benefit to all the high streets across the United Kingdom. Rates relief has brought opportunities and retained employment in shops in places in my constituency such as Newtownards, Comber and Ballynahinch. Rates relief ensures that we do not have empty shops. Those involved in the retail business say that we have some of the best shopping opportunities in the whole of Northern Ireland.

We have pursued the issues of air passenger duty and tourism VAT, negotiating and consulting with the Conservatives on how the confidence and supply agreement can benefit us, as well as the whole of the United Kingdom. There are advantages for others across the United Kingdom in a reduction to air passenger duty and tourism VAT. We need to be on equal terms with the Republic of Ireland to be able to grow our tourism sector. The DUP is continuing to work on issues that affect the local economy in Northern Ireland, as well as the whole of the UK economy. We are pleased to be part of the economic success story we have in the whole of the United Kingdom of Great Britain and Northern Ireland.

As the briefing paper succinctly put it, in terms we can understand, in 2016-17 the Government borrowed £46 billion to make up the difference between their spending and the income raised from taxes and other sources. Since 2009-10, the UK’s borrowing—often referred to as the deficit—has fallen by 70%, which again is good news. Borrowing is now at a similar level to that before the 2007-08 financial crisis, and the OBR forecasts that it will fall each year to just over £1 billion in 2022-23, which is equivalent to around 1% of GDP. If anyone thinks that this is not good news, they need to take another look at what it is saying. In laymen’s terms, we still have a massive debt—there is no doubt about that—but, in fairness to the Conservative party, it is trying hard to reduce the deficit, and if we continue along the lines we are on, it will be to the benefit of everyone in the Chamber and every one of our constituents.

[Alex Chalk (Cheltenham) (Con)]

Does the hon. Gentleman agree that it will be to the benefit not just of this generation but of the next generation, given that we currently spend on debt interest alone a sum greater than the entire NHS wage bill? We have to get that down so that future generations can have the public services they deserve.

[Jim Shannon]

The hon. Gentleman is right. It is not just for us as MPs and our constituents; it is for our children and our grandchildren. We are building a base here, as we have done in Northern Ireland through the Assembly, for a stronger economy in years to come. It is important that we move towards that.

I agree with the Government’s goal of reducing the deficit yearly, but while we must aim to do this, things arise outside of our control, and we must always be able to access spending power to meet those needs. We seem to be stabilising, and yet I am aware of the adverse effect of the roll-out of universal credit. I must put on the record my concern about its effect on the disabled and vulnerable. Opposition Members who have sat with me through many debates will understand my concern.

I am also very aware of the needs of the NHS, which the hon. Member for Cheltenham (Alex Chalk) referred to in his intervention, and the importance of providing advantages and opportunities to the NHS when it comes to funding. In the words of an elderly constituent of mine, the NHS “needs to rubbed out and drawn again, as our highly trained NHS staff are at the end of themselves and living on their nerves with no breaks and crisis management from one hour to the next”. That is why I welcome the Government’s commitment to a 6.5% wage increase for NHS staff over three years. That is good news, and we should all welcome it, because it is a step in the right direction. The DUP asked for that in our negotiations and discussions with the Conservative party, and the Conservative party has accepted it.

Fishing, which has come up on both sides of the House, is hugely important to me and my constituency, particularly in the village of Portavogie. Since we have an absentee MP for South Down, I should add that it is also important to those from Ardglass and Kilkeel. It is very important that we have a good fishing industry and sector. We are sick and tired of EU bureaucracy and red tape, of quota restrictions and days-at-sea restrictions, of boat numbers reducing in my village of Portavogie from 120 to about 75—the reductions are similar in Kilkeel and Ardglass.

The fishing sector is under pressure, but with Brexit we will have what the hon. Member for Angus (Kirstene Hair) said: a stronger fishing sector and industry, more employment, more opportunities and more jobs. I, like others, would like to see landings landing on UK soil. That is important. The voisinage agreement is a legal agreement under which we will take back some of the waters that are ours but which under another legal agreement the Republic of Ireland looks after. That will happen, and we will have more control over our own waters. So Brexit brings good news for the fishing sector.

I say the same thing to the Minister today that I said to the Secretary of State for Environment, Food and Rural Affairs the other day. I want us to make sure that in 2020 we are out. It is the responsibility of Ministers to make sure that happens. The Secretary of State gave me that commitment, and other commitments have been given as well. Those who represent fishing villages understand our concern and angst.

My constituency has seen enormous growth in the agri-foods sector. I think of businesses such as Willowbrook Foods, Mash Direct and Pritchitts—also known as Lakeland Dairies. The latter has three factories, two in the Republic and one in Northern Ireland, and if ever we needed an example of why we need to transition to a soft border, that company is it. Its process involves milk crossing the border three times: first, it comes across in fluid form; then it goes back in powder form; and then it comes back again to Newtownards, where it is packaged and processed, and sold across the world. Rich Sauces is another agri-food business in my constituency that is doing extremely well, and we must remember that this is about not just the guys in the factories doing the production and manufacturing, but the farmers supplying the milk, and those providing arable goods for vegetable firms. Those are the success stories, and we need to reach a satisfactory arrangement for them.

We have also seen new markets created. Lakeland Dairies, for example, is marketing a new milk powder in China. The Minister has been involved with that. He has been helping us to get through the red tape we sometimes have so that we can secure that opportunity. Pharmaceuticals, insurance and light engineering are other growth industries in my constituency, like others. We have many small companies that started off with perhaps half a dozen employees and then grew. Patton’s is one that comes to mind right away. It started off with a van and three people; it now has a dozen vans and a workforce of 65.

Good things are happening, so let us talk about them. I do not mean to be disrespectful to anyone—that is not my nature—but if people talk things down enough, they will be down. We must talk them up. Let us talk up the good things—we should not ignore the negatives—and be positive. Positivity is what we want—it is certainly what I want.

I am aware that even small tax rises—for example, the 4.5% rise in rates for Northern Ireland, coupled with the almost 3% local rise in my constituency, results in a 7.5% rate increase for families slightly above the threshold for help through tax credits—can have an impact on people’s quality of life. We tell parents not to feed their children crisps as a lunchtime snack. Crisps cost 10p, but we tell them to give the children an orange, which costs 20p, so that is financially illogical. We tell parents to take their children to after-school clubs to help their social development, but they have to fund that themselves, because cuts have stopped Sure Start and other places from funding classes for children.

Members have referred to food banks. People are always being negative about food banks, but we should be positive. The Trussell Trust food bank in Newtownards in my constituency—we were the first to have one in Northern Ireland—has brought the churches and many individuals together. Every one of them is concerned for those who have nothing. Is it not a good thing when people come together to do something really good, substantial and positive to bring about change?