G20 Summit

Caroline Lucas Excerpts

Monday 25th June 2012 Commons Chamber

[The Prime Minister]

My right hon. Friend raises an important point. Because we have credibility in financial markets and our interest rates are less than 2%, we are able to use the strength of our balance sheet to help make sure that houses get built, that infrastructure goes ahead and that we help our economy in that way. We are looking at the best way to make this happen.

[Caroline Lucas (Brighton, Pavilion) (Green)]

Given the lack of any discernible progress on ending harmful fossil fuel subsidies since the first G20 pledge on that three years ago, and given the silence about it again today, what would the Prime Minister say to the 1 million people whose petition was handed to him last week asking for an immediate end to those subsidies? Does he really think they are the best use of $100 billion globally every single year?

[The Prime Minister]

The hon. Lady makes a very important point, and there is huge pressure on countries that have big fossil fuel subsidies to end them. A number of countries—such as Nigeria and, I believe, Pakistan—have taken some steps to end the subsidies. It is obviously a difficult and painful process for those Governments to go through as they change the structures of their economy, but we should be encouraging them.