Debate on the Address

Barry Sheerman Excerpts

Wednesday 9th May 2012 Commons Chamber

[The Prime Minister]

Certainly, the cost of a stand-alone referendum would be significant and it is worth taking that into account.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Will the Prime Minister take it from me, after a lot of canvassing last week, that many people in this country are astounded that in the Queen’s Speech there is nothing about youth unemployment or providing jobs, no higher education Bill and nothing to address the large number of unemployed graduates we now have in this country?

[The Prime Minister]

The youth contract, which is going to do enormous amounts on youth unemployment, started last month. We achieved 450,000 apprenticeships last year. The Work programme is well under way now, helping half a million people, and it is the biggest back-to-work programme in this country since the 1930s.

Let me explain that there are a number of important measures in this Queen’s Speech to promote growth and jobs. As well as the Work programme and the youth contract, we have the national loan guarantee scheme, with £20 billion to get cheaper loans flowing to small businesses. The most important work of the Government is implementing all those schemes and programmes, but we must do more to rebalance our economy. It is clear what went wrong. The public sector grew too large, our economy became unbalanced between north and south and we ended up too dependent on financial services. So we know what we need to do as a country. We must revive the private sector, spread growth and jobs across the country and make sure that financial services truly serve the economy—not the other way around.

To expand the private sector we need to cut the burdens on business and make it easier for employers to take people on. That is in our enterprise Bill. To make the most of growth in the energy sector, including gas, nuclear and renewables, we need to reform the energy market, and that is what the energy Bill will do. To make the most of green investment, we need to legislate properly for the green investment bank, with £3 billion of money in its coffers. That will be done through the measures announced in the Queen’s Speech as well.

Another key issue is the need to clean up the financial system, and I have to say to the shadow Chancellor, who sat and did nothing while the financial sector melted down, that he ought to focus on this part of the Queen’s Speech. As the Governor of the Bank of England said last week, there are three vital steps to take, and we will be taking all of them: proper regulation at last by the Bank of England, the banks being made to hold enough capital to keep them safe, and a regime that means that if they do fail they can fail without the taxpayer picking up the bill. Those are all things that the shadow Chancellor never did when he was the City Minister.