Oral Answers to Questions

Bridget Phillipson Excerpts

Wednesday 9th February 2011 Commons Chamber

The Secretary of State was asked—

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

1. What assessment he has made of the effect on economic growth in Northern Ireland of the increase in the basic rate of value added tax.

[The Secretary of State for Northern Ireland (Mr Owen Paterson)]

Before answering, may I pay tribute to Ranger David Dalzell of the 1st Battalion the Royal Irish Regiment? He came from Bangor, but he was also stationed with his regiment in my constituency at Tern Hill. I am sure the whole House will join me in offering our condolences to his family and friends, and thanking this brave young man for his service to his country after he was killed in Helmand this week.

The reckless years of debt and spending made the VAT rise a necessary step for national economic recovery. Forecasts from the Office for Budget Responsibility show that the Government’s plans will deliver sustainable growth for each of the next five years, with employment rising by 1.1 million by 2015, and the deficit falling.

[Bridget Phillipson]

When will the Secretary of State set out his paper on rebalancing the Northern Ireland economy? That is particularly crucial at a time when the VAT rise is damaging local retailers.

[Mr Paterson]

The hon. Lady is correct. We need to bring the paper forward as a team effort, working with local Ministers. I will come to that in response to later questions. We had a very satisfactory meeting with the Exchequer Secretary earlier this week, and we hope to publish the paper as soon as possible.