Oral Answers to Questions

Debate between Bernard Jenkin and George Osborne

Wednesday 25th May 2016 Commons Chamber

[Mr Osborne]

Of course, we have 25,000 more clinically trained staff in our national health service, but I completely agree with the hon. Lady that there is a challenge of housing in London. I met the new Mayor of London, Sadiq Khan, earlier this week and we are going to see where we can agree on policies that will help to address that issue.

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

In my right hon. Friend’s enthusiasm to bludgeon the British voter into supporting a European Union that they do not really like, how can he justify planning to break the law? Is he aware that the Public Administration Committee has now published three legal opinions from Speaker’s Counsel—[Interruption.]

[Mr Jenkin]

Is my right hon. Friend aware that the Public Administration Committee has now published three legal opinions from Speaker’s Counsel that make it perfectly clear that it is illegal for the Government to keep their pro-EU propaganda up on Government websites during the purdah period?

[Mr Osborne]

Of course the Government will comply with the law and the Government websites will comply with the purdah rules. We are confident that they do so. May I make a general observation? My hon. Friend and I have fought for this referendum and it is now taking place. There are huge issues at stake about Britain’s economy, Britain’s security and Britain’s place in the world, and we have perfectly honourable disagreements on those big issues. Let us debate the substance rather than the process, so that the British people can feel that they have had a range of opinions and can make their own minds up.

Greece

Debate between Bernard Jenkin and George Osborne

Monday 29th June 2015 Commons Chamber

[Mr Osborne]

I make the broad observation that ultimately countries have to live within their means; we see what happens if they do not. On the Greek debt situation and the burden of Greek debt, eurozone members were in discussions about the terms of debt repayments and the like, but those negotiations were broken off on Saturday because of the unexpected announcement by the Greek Prime Minister on Friday.

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

Does not the eurozone states effectively endorsing a plan for fiscal and banking union, as proposed by the five eurozone Presidents, regardless of the treaty that the Prime Minister vetoed in December 2012, underline the urgency for the Chancellor to deliver on the dilemma that he outlined in a speech on 15 January 2014, when he said:

“The…Treaties are not fit for purpose.”

He also said:

“If we cannot protect the collective interests of non-eurozone member states then they”—

meaning we—

“will have to choose between joining the euro, which the UK will not do, or leaving the EU.”

Can he explain why those words have been taken down from the Downing Street website?

[Mr Osborne]

I have absolutely no idea; I thought it was one of the better speeches I gave over the past five years. My hon. Friend will be glad to know that I repeated exactly those arguments, including the phrase about the challenge of Britain having to choose, in the Mansion House speech that I gave just a couple of weeks ago. That is certainly up on the Treasury website.

Economic Growth

Debate between Bernard Jenkin and George Osborne

Wednesday 15th May 2013 Commons Chamber

[Mr Osborne]

As our Scotland analysis papers show, Scotland would have to apply to join the European Union as it became a new state. I am glad the Scottish National party is taking part in this debate on economic policy. Perhaps we will get a clearer view from SNP Members, after the shambles of the past three weeks, of what their policy is on the currency that Scotland would use, should Scotland vote to leave the Union. We have not had a clear answer. Some members of the SNP have said that Scotland should have its own currency, others have said that Scotland should join the euro, and still others have said that they would negotiate a monetary union with all of us in order to keep the pound. There is complete confusion in the SNP ranks and until they have a clear answer to that, they will not be listened to on much else.

[Mr Jenkin]

Does my right hon. Friend agree that the Government are committed to what one might call a policy of negotiate and decide, although that has a familiar ring to it? Would it not help the clarity of this debate if the Government set out exactly what they intend to negotiate on? That has not been clear from anything they have so far said.

[Mr Osborne]

As my hon. Friend knows, and he takes a close interest in these matters, this is the beginning of a process of setting out what we want to achieve in a renegotiation, and in a conversation about that. Of course, we will then seek to achieve that renegotiation, achieve that new settlement—I am confident that after the election the Prime Minister and a Conservative Government will be able to achieve that—and put it to the British people in a referendum.

Professional Standards in the Banking Industry

Debate between Bernard Jenkin and George Osborne

Thursday 5th July 2012 Commons Chamber

[Mr Osborne]

I will make further progress in my speech and then give way, but I am not giving way at the moment. If we—[Interruption.]

[Mr Jenkin]

On a point of order, Madam Deputy Speaker. I regret to say that I cannot hear the Chancellor of the Exchequer. Mr Speaker regularly reminds this House that we do not look very good to the public, and I think this might be a prime example.

Eurozone

Debate between Bernard Jenkin and George Osborne

Monday 10th October 2011 Commons Chamber

[Mr Osborne]

I think that is called a trick question. The hon. Gentleman has been an absolutely consistent and principled opponent of the euro. When I first arrived in the House in 2001, he was making the argument then and he is still making it now, and I respect him for it. As I have said, however, “I told you so” is not an economic policy at the moment. He may well be right about the problems of combining the economies of different countries with totally different structural problems, competitiveness rates and so on, let alone fiscal policies. He is right about all that, but we have to deal with the world as it is, and at a time like this I do not think that advocating the break-up of the euro is in our national interest. We need to make the euro work. Monetary unions can be made to work, but that involves things like fiscal transfers. At last, I think, the eurozone is facing up to that.

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

May I remind my right hon. Friend of what he said on 24 September, when he reminded the world that there were six weeks to save the euro? If we get to 5 November and this crisis is grinding interminably on, will it not be time to start advocating the advice of Lord Lawson, who advocates an orderly break-up of the euro in order to restore growth to European economies and limit the liabilities that are constantly building up the longer this crisis goes on?

[Mr Osborne]

My hon. Friend is right to remind us that the G20 summit in Cannes is the last of a string of international meetings that have involved the G7, ECOFIN, which the Treasury Secretary attended, the International Monetary Fund, G20 Finance Ministers later this week and the European Council next week. It all culminates in the G20 meeting of world leaders at Cannes. That really is the moment when the world needs to be in no doubt that there is a solution to the eurozone problems and that we have the firepower and strength in the banking system to deal with them. If we do not deal with them, the situation will go from bad to even worse. However, as I say, it would not be sensible to advocate to our European colleagues the break-up of the euro. That would greatly diminish what we had to say in these meetings, as it would not be seen as practical—[Interruption.] Well, I also think it would be wrong, as it is not in Britain’s national interest to see the euro break up.

Independent Banking Commission Report

Debate between Bernard Jenkin and George Osborne

Monday 12th September 2011 Commons Chamber

[Mr Osborne]

I talk to UKFI all the time, and one of the things I talk about is ensuring that the banks in which we have a public ownership of shares are meeting their Merlin lending targets. I congratulate Lloyds, which has changed its operations and advertising campaigns and has tried to encourage small business lending. The hon. Gentleman talks about targets, but again there is complete amnesia about the fact that Labour were in government about 18 months ago. The Labour Government introduced net lending targets, which he wants us to introduce, abandoned them after 12 months, after those targets were completely missed, and then said in the House of Commons that they would introduce gross lending targets for two banks, RBS and Lloyds. We have not just stuck with the methodology that they developed, but have extended it to the entire banking system. Before they criticise those trying to clear up the mess, Labour should remember what they did in office.

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

I welcome my right hon. Friend’s comment that we should not confuse the interests of bank shareholders with those of taxpayers. Should we not also remind ourselves, however, that unless the shareholders are doing well, the bank balance sheets will not be doing well, and ultimately small business borrowers will not be doing well? He is winning the argument on the reforms, but will he reassure the House that he is mindful of the cost of capital of banks? By raising business costs for banks, we would be in danger not only of driving them offshore, but of raising the costs of capital for UK business.

[Mr Osborne]

Of course, that is the difficult balance that we all must get right. The challenge is to ensure that banks can lend well, as people have been asking them to, while at the same time ensuring that they have a greater cushion should things go wrong. In his report, one of the things that John Vickers points to is that if a bank is ring-fenced, its retail deposits are more likely to be used to support retail lending than to support an investment bank’s activities. He thinks that the ring fence could positively enhance lending opportunities for ring-fenced banks.

Financial Assistance (Ireland)

Debate between Bernard Jenkin and George Osborne

Monday 22nd November 2010 Commons Chamber

[Mr Osborne]

As I said earlier, the conditions attached to our loan will be similar to those attached to the overall international assistance package; of course, we are part of the discussions when it comes to shaping that package. I would make two specific points. First, we have set very high store by sorting out the banking problem. In other words, using this financial assistance to sort out the banking problem has been the primary thing that I have been calling for in the private discussions we have had leading up to this point.

Secondly, on the rate of corporation tax, I would make this observation to the hon. Lady, and I hope that she has some sympathy with me. Ireland should be in charge of its own tax rates. How the terms of the financial assistance are met has to be a decision ultimately for the Irish Government and the Irish Parliament. It is the thin end of the wedge if we allow other countries and other international organisations to start determining what corporate tax rates should or should not be. It is in everyone’s interests that Ireland grows, and it would not be particularly in our interests if the Irish undertook measures that might, for example, lead to an immediate flight of international business.

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

I recognise that my right hon. Friend is dealing with some very serious and potentially disastrous economic circumstances, but when I say, “I told you so,” it is not just about staying out of the euro; I am saying, “I told you we shouldn’t have ratified the Maastricht treaty.” [Laughter.] They are guilty over on the Opposition Benches, too. Will my right hon. Friend be a little clearer? Is he saying that unless we are fully extricated from any potential liability for other eurozone members through the European Union, there will be no treaty change?

[Mr Osborne]

I am not proposing to take Britain out of the Maastricht treaty, despite my hon. Friend’s request. I know that will come as a bit of a disappointment. I would like the balance of payments mechanism to remain—it has existed for many years—but of course the situation in the eurozone is not a balance of payments issue. That mechanism is for countries, particularly accession countries, to draw upon. I would like the mechanism set up under article 122 to be used for what it was designed to be used for, which was natural disasters and the like, and I would like the permanent bail-out mechanism for the eurozone not to include the United Kingdom.