The Economy Debate

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Department: HM Treasury

The Economy

Barry Sheerman Excerpts
Thursday 4th June 2015

(8 years, 11 months ago)

Commons Chamber
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Chris Leslie Portrait Chris Leslie
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I will come to that in a moment. The hon. Gentleman must also be staggered that the Chancellor did not even mention it in his Budget speech. That was an omission that the Chancellor needs to correct. We take a different view of where productivity comes from because, for us, it depends in part on having decent infrastructure and public services—motorways that flow freely and trains that commuters can actually get on, tax offices answering business queries efficiently rather than keeping companies’ staff waiting on hold, employees who are off sick able to get treated swiftly in a decent NHS, an education system that supports a work force and provides training in high-quality skills. Each of these is crucial for our future economic productivity, and each depends on the Chancellor making the right fiscal choices for this Parliament.

Barry Sheerman Portrait Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
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Will my hon. Friend push the Chancellor a little harder on productivity? The recent report from the Chartered Management Institute said that management and skills were at the heart of productivity. The Government have not tackled those, and a culture has grown up in which even when managers fail to meet targets they still get their bonus.

Chris Leslie Portrait Chris Leslie
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My hon. Friend makes a good point. According to the OBR, if productivity growth per worker was closer to 4%, our national debt would be £350 billion lower by the end of this Parliament. There is a connection between the choices that are made in fiscal policy and the productive nature of our economy.

The OECD confirmed just yesterday in a sobering reality check for the Chancellor that continued weak productivity could lead to a higher than expected budget deficit, and he should listen to the OECD.

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George Osborne Portrait Mr Osborne
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Let me say how fantastic it is to see my hon. Friend back in his place, because he has fought so hard for his constituency in delivering the Mersey Gateway bridge, the rail improvements in his constituency, and, as he mentioned, the major investments in science at Daresbury, including in high-performance computing. Today’s announcement from IBM shows what happens if we get our science and technology policy right as a country—we attract investment from all over the world.

Barry Sheerman Portrait Mr Sheerman
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Can I ask the Chancellor about—

John Bercow Portrait Mr Speaker
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Order. The hon. Gentleman has been here for 36 years, and he ought to know that you do not pose the question before permission to make the intervention has been granted. I think the Chancellor has acceded to the intervention; let us now hear what it is.

Barry Sheerman Portrait Mr Sheerman
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The right hon. Gentleman knows that I try to play fair in these things, but on his question about my right hon. Friend the Member for Normanton, Pontefract and Castleford (Yvette Cooper), I think a sense of humility is needed in this Chamber today. The Tory party has just got 30% of the popular vote; the Labour party got 31%. A hell of a lot of people in this country did not vote Conservative and did not vote Labour, and if we are not looking at why we do not enthuse the people, we are not doing our job.

George Osborne Portrait Mr Osborne
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I could not tell whether the hon. Gentleman agrees with the right hon. Member for Normanton, Pontefract and Castleford that the Labour party is the anti-worker party—but we will find out.

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Barry Sheerman Portrait Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
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What a pleasure it is to be the first Member on the Labour Benches to be called by you, Ms Engel. You and I have been friends since you came to the House, and what I love about you is that you are passionate about this House. You were a great Chair of the Backbench Business Committee.

I have been sitting here since 9.30 am and have heard many excellent speeches and interventions today. There have been too many maiden speeches to mention. The secret of this place is to use it, serve the apprenticeship and then enjoy it. It is the place for hon. Members to make their reputation, hone their skills and show that they are real parliamentarians.

I wanted to talk about austerity, productivity, schools and skills, the north-south divide and the danger of withdrawing from Europe, but I probably will not be able to touch on a lot of that. I will instead start by being a little serious. Mr Speaker is sometimes very ageist and points out how long I have been in the House of Commons. My wife is just as bad. I was making my acceptance speech in Huddersfield on election night and said that I had just fought my ninth campaign. My wife said, “Darling, it’s your tenth. You fought Taunton first and didn’t get in.” I looked it up and found that I am the last Labour candidate to come second in Taunton. We came in behind the UK Independence party this year. That is quite a long history of fighting 10 elections.

However, this is the most worrying election I have been involved in. I say that not because the Labour party got a drubbing, or because there was a spectacular surge in Scotland by the Scottish National party. What was really worrying was the electorate’s lack of enthusiasm for any of us. They do not like us very much. Only two thirds of them voted and they did not vote with the great passion, saying they wanted to get to the polls, they wanted to get a Labour party or a Conservative party, or anybody else in Government. I found it very worrying that there was so little enthusiasm for the election as I knocked on doors. This is a country in which people such as the Luddites, the Chartists and the Suffragettes fought for the vote, but now we knock on people’s doors and are told, “We’re not voting—you’re all the same.” That is a terrible comment on where we are in our democracy today.

I found that the electorate were confused and depressed, and they resented and distrusted us. They wanted the leaders of our parties to be better, and I also think that all three leaders could have been a darn sight better. There was a feeling that there was no legitimacy about the election. Only 66% of the electorate voted, 71% in Scotland. As I said in an intervention on the Chancellor of the Exchequer earlier, “Don’t let’s crow about how well we represent everyone, when even the Government party is only representing such a small percentage of the British and the UK people.”

This is a year of really important anniversaries: 800 years since Magna Carta, and 200 years since Waterloo. However, I want to dwell for a moment on world war two, as it is 70 years since it ended. Faced with the challenge of rebuilding a devastated country that had been at war for six years, we picked ourselves up under a Labour Government and made the basic institutions that were to provide the foundations of the good life for so many people for 70 years. There was the national health service, which meant everybody getting the best medical treatment on the basis of need and not the ability to pay. There was the welfare state—okay, it was started after the first world war by Lloyd George, but it was made much more comprehensive after 1945 by a Government that said there should be a welfare net and that no one should fall below that level of poverty and need. Then, “welfare” meant something wonderful and not what it has been turned into now, partly sometimes in this country by the Government but particularly by the Republicans in the United States. I believe in the welfare state, and I believe in a great state.

We have a great challenge now to regenerate our economy and our country, and we will only do that by making our people happy and contented, and giving them the good life that they deserve.