G20

Baroness Royall of Blaisdon Excerpts

Monday 15th November 2010 Lords Chamber

[Baroness Royall of Blaisdon]

My Lords, I thank the Leader of the House for repeating the Statement on the G20 made by the Prime Minister. We endorse wholeheartedly the congratulations that the Prime Minister has passed to the remarkable lady, Aung San Suu Kyi. However, we also agree that as we celebrate her freedom, there is still a long journey before there will be a free and democratic Burma. I also welcome the release of Paul and Rachel Chandler.

On the G20, I welcome the South Korean Government’s success in keeping development on the G20 agenda. Development aid is not only important for the lives it saves; it also makes an important contribution to global growth. I also welcome the fact that the Prime Minister pressed the G8 countries that were there in Seoul to keep their promises on aid.

On climate change, can the Leader of the House tell us how the promises made at Seoul will be turned into action at Cancun?

On banks, we welcome the continuation of work to reform the financial regulatory framework set in motion at previous G20 meetings. The increased stringency of the Basel Committee’s capital requirements is a welcome step in making banks across the world more stable. However, further work is needed to implement these reforms. We recognise that this is difficult. Can the Leader of the House tell us what he believes is the way to balance the need for financial stability with the economic recovery?

On growth, we all know that for the UK global growth is always important—we are a trading nation. Jobs in this country depend on strong exports, which in turn depend on a growing global economy. Does the Leader of the House acknowledge that dependence is even greater because of the decisions that his Government have taken on the economy here at home? Cutting public spending and increasing VAT will dampen domestic demands and hit jobs. The Office for Budget Responsibility has shown that because of the cuts he is making, Britain must increase exports by more than £100 billion to sustain jobs and growth. How can that happen if our export markets are failing to grow? Do the Government recognise that the global economy on which we are now even more reliant is fragile?

That is why this G20 was so important. The most recent figures show that growth in our largest export market—Europe—has halved and that the US is still facing high unemployment and slow growth. Does the Leader of the House acknowledge that with growing disagreements between major economies about currencies and trade restrictions, co-ordinated action through the G20 is more important than ever?

I suggest, therefore, that the G20 was a missed opportunity. No one expected the problems to be solved overnight, but there was no co-ordinated action to support jobs and growth worldwide; little progress on reaching agreement on currencies, particularly between China and the US; little assurance by way of anything practical to prevent a resurgence of protectionism over the next few years, but I hear what the noble Lord said on that issue; and no action to restart the Doha round of trade negotiations, however difficult that may have been.

This was the fifth G20 summit since the global financial crisis hit in 2008. During that time the UK provided leadership for co-ordinated global action. Can the Leader of the House tell us why the Prime Minister failed to offer that leadership in the run-up to Seoul, and at Seoul itself, at such a crucial time for jobs in this country and for the global economy?

Now that the summit is over, the questions that remain are: what was the Prime Minister’ strategy; what was he aiming to achieve; did he have any proposals for jobs and growth, and if so what were they? We are told in the media that tonight, in a speech at the Lord Mayor’s banquet, the Prime Minister will talk about,

“a Britain at the centre of all the big discussions. Producing the ideas”.

What were the Prime Minister’s ideas for the G20 and what did he say in those discussions? Is it not the case that, because the Prime Minister has refused to take action on jobs and growth in Britain, he would find it difficult to lead in the debate about jobs and growth internationally? Is it not true that, because the Government refuse to recognise that the economic crisis was global, they find it difficult to engage with international efforts to tackle it?

No one expected the summit to be straightforward and it was not. It saddens me, however, to think that rather than showing strong global leadership—strong leadership in the search for global solutions to global problems—we in Britain looked as though we were on the sidelines.