Draft Transparency of Donations and Loans etc. (Northern Ireland political parties) order 2018

Debate between Chloe Smith and Owen Smith

Tuesday 19th December 2017 General Committees

[Owen Smith]

I will give way in a moment; the hon. Gentleman has made his intervention.

[Chloe Smith]

The right hon. Member for Exeter is precisely on the point. My right hon. Friend the Secretary of State began this action in January. Can the hon. Member for Pontypridd explain why we have not received any further communication from the parties about changing their view, as he claims they have done? Did they not see that we were having a fully open process for the whole of 2017 in which they could have communicated that? They have not done that. I tell him that they have not. We have not received any such communication. There has been no change, and he is dancing on a pin.

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[Owen Smith]

Let me read out to the Minister some of the responses that I have received from the political parties in Northern Ireland, and I will also read out the view of the Electoral Commission in Northern Ireland. I will start with the commission, as it is the only statutory consultee that the Government are meant to consult as a result of the Northern Ireland (Miscellaneous Provisions) Act 2014. It is profoundly disappointed that the Government have chosen not to backdate the donations to 2014, it welcomes the transparency that is going to be introduced prospectively—

[Chloe Smith]

Unlike the hon. Gentleman.

[Owen Smith]

Not unlike the hon. Gentleman because those were my opening words to the Committee today, so the Minister really ought to listen. But the Electoral Commission is profoundly disappointed that the provision will not be retrospective, which is also my view. Ann Watt, the head of the Northern Ireland Electoral Commission, said:

“While all reportable donations and loans received from 1 July 2017 will now be published by the commission, we would also like to see the necessary legislation put in place, as soon as possible, to allow us to publish details of donations and loans received since January 2014.”

Her predecessor, Séamus Magee, who retired in 2014, said:

“The deal on party donations and loans must be part of the DUP/Conservative deal. No other explanation…Every party in Northern Ireland understood that the publication of political donations over £7,500 was to be retrospective to Jan 2014.”

I put it to the Minister that part of the reason that some of the political parties did not respond saying that they wanted it to be retrospective is that they naturally understood that that would be the case, given that that was what the legislation allowed for. When the Minister responds, I am sure she will tell us why she has arbitrarily picked the date of 1 July 2017. There is no reason that I can see, either in statute or in ministerial comments, for coming up with that date.

Let me read some of the views of the parties. Conor Murphy, a Member of the Legislative Assembly for Newry and Armagh, said on behalf of Sinn Féin:

“The British Government’s refusal to backdate new laws on political donations is aimed at covering-up so-called Brexit ‘dark money’ that was paid to the DUP”.

He also said:

“If the DUP and the British Government were serious about transparency in government then they would support the retrospective publication from January 2014 of all donations over the reportable threshold.”

Robin Swann, the leader of the Ulster Unionist party, has told me in writing today that his party would not oppose retrospective introduction of the legislation, and a similar view is now held by the Social Democratic and Labour party. In addition, the view of the Alliance party, which was clear back in January, was that it, too, wanted publication. The truth is that the views of the political parties in Northern Ireland and those of the Labour party have changed as a result of growing concern about the DUP donation.

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[Chloe Smith]

I thank my hon. Friend the Member for North Dorset for his comments and support. I will deal with a few of the remarks made in the debate and then, in wrapping up, I will emphasise why the Committee should vote for this order.

In chronological order, I will begin with the arguments of the hon. Member for Pontypridd. Frankly, I find it amazing that he is opposing transparency. He will no doubt say that his first words were to support transparency, but his second words were to say that he would vote against it. That is a shabby state of affairs. Our words should echo our deeds. The Government are committed to transparency, which is why we have introduced this order; the parties are committed to transparency; the public are committed to transparency; and the Electoral Commission is committed to transparency. He cannot bring himself to vote for it. He is not committed to transparency.

[Owen Smith]

Will the Minister give way?

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[Chloe Smith]

Yes, perhaps the hon. Gentleman will say that he is committed to transparency.

[Owen Smith]

I am, as I said at the beginning of my remarks. I hope the Minister will explain to the Committee why she is not in favour of transparency in line with the original legislation that her Government passed in 2014. That offered more transparency than is currently on offer—Labour wants more transparency, not less. All she needs to do is tell the Committee that she will take this measure away, rethink it in the light of changed views in Northern Ireland and in this House, and adopt what was originally intended by her Government, backdated to 2014.

[Chloe Smith]

That was a lovely long intervention, so that is the hon. Gentleman’s lot—I will not take another one from him. I will explain exactly those points.

I remind the House that the Conservative manifesto for the 2017 election in Northern Ireland pledged to increase transparency. We are delivering on that. The Labour party is choosing not to. That is amazing.

We wrote to the parties in January. This year, Northern Ireland parties have engaged in two elections and in sustained political talks, so to offer the position in January, to seek views and then to take action from July is a reasonable approach. My right hon. Friend the Secretary of State has already explained that he thinks that it is not right or fair to impose retrospective regulations or conditions on people who donated in good faith with the rules as they were set at the time.

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[Chloe Smith]

The right hon. Gentleman allows me to move on to my next, rather important point.

[Owen Smith]

What is the answer?

[Chloe Smith]

The answer is that we are a responsible Government who are introducing the draft order on transparency, and while we have no intention of providing for the publication of pre-2017 donations, we intend to work with the Electoral Commission to review the operation of the broader framework for donations and loans in Northern Ireland when these transparency arrangements have bedded in. That is rather important, because it reminds us that what we have today is the beginning of obtaining an important amount of data; from today, we will be able to better see the full situation.

On that, I turn briefly to the comments from the hon. Member for East Antrim, although he is not a voting member of the Committee. I welcome his affirmation that parties wants to move to full transparency. He also reminded us that only one party proposed backdating, and I reiterate that we have not received any communications from parties indicating that their positions have changed since January.

I also say to the hon. Gentleman that I understand his argument regarding Irish donations. The draft order will provide transparency and will be the beginning of our having some valuable data. When that transparency has bedded in and there is a fuller understanding of how Northern Irish parties are funded, my officials and I intend to work with the Electoral Commission to look at other aspects of the operation of the donation and loan systems in Northern Ireland, to review whether there might be a case for further reforms.

The Government welcome the Electoral Commission’s support for the draft order. We think we should get on with it; to delay will lead to even greater secrecy. Those Members who vote against the draft order are voting to delay transparency and to avoid the normalisation of Northern Ireland’s politics, and they are voting against the ability of anybody to hold politicians to account. Funnily enough, we are talking today about the standards of politicians and the clarity of our conduct. Our votes should mirror our views. If we believe in having transparency henceforth, let us vote for it.

Question put.

Oral Answers to Questions

Debate between Chloe Smith and Owen Smith

Wednesday 15th November 2017 Commons Chamber

[Chloe Smith]

No, I will not. The hon. Lady may think that the answer is not good enough, but it has the merit of being true.

[Owen Smith (Pontypridd) (Lab)]

Will the Minister simply confirm whether women rape victims in Northern Ireland will be at risk of potential prosecution as a result of these measures—yes or no?

[Chloe Smith]

No.

[Owen Smith]

The Minister and indeed the Prime Minister need to reflect on that answer, because I have a letter here from Barra McCrory, the Director of Public Prosecutions in Northern Ireland, who said, in answer to my question on this very issue:

“It is, however, a potential offence to withhold information regarding an act of rape. The legislation does not distinguish between a victim and third parties to whom a disclosure is made; each is potentially liable to prosecution.”

How on earth can the Government countenance making women in Northern Ireland who are subject to rape imprisonable under the law? How can she accept that?

[Chloe Smith]

The fact is that we are not doing so. As I said to the hon. Member for Glasgow Central (Alison Thewliss), there is clear guidance on the form that makes the legal position very clear, and we have sensitively handled that as an exception for precisely those reasons.

Disability Employment Gap

Debate between Chloe Smith and Owen Smith

Wednesday 8th June 2016 Commons Chamber

[Owen Smith]

Of course it does, and I am going to say something about that straight away, because the first of the cuts that I want to discuss—cuts that are making it enormously more difficult for disabled people to get into and stay in work—is the PIP cut. As we know, PIP is a system of support that helps disabled people to deal with the extra costs of being disabled and to play a full part in life, which includes going to work. Eventually, when they have all been shifted across from Labour’s disability living allowance, 3.5 million people will be on PIP.

As I said earlier, the previous Secretary of State baulked at taking £1.2 billion out of PIP by changing the eligibility criteria in respect of washing and dressing, but he knew that he had already saved £2 billion by tightening the criteria relating to the move from DLA to PIP. One of the ways in which he tightened those criteria involved the mobility component of PIP, versus DLA. Crucially, he changed the measurement of people’s mobility—how far they were able to walk—from 50 metres to 20 metres, the net effect of which was, quite simply, that fewer people were eligible for the mobility component. As a result, 17,000 specially adapted Motability cars have been removed from people. [Interruption.] The Secretary of State says that I have got my stats wrong. He can tell us what he thinks the stats are shortly, but first I am going to tell him what Muscular Dystrophy UK has said, because it has an interest in the matter. It has said that it is deeply concerned about the fact that between 400 and 500 specially adapted cars a week are being taken away from disabled people, which is an extraordinary statement. Does the Secretary of State think that is right? Does he think for a second that it is even cost-effective? More important, what does he think about the impact on real people?

Only this morning, Muscular Dystrophy UK highlighted the case of a woman called Sarah, aged 29, from Norfolk. She has myotonic dystrophy, which means that her muscles are progressively wasting. None the less, she works as a nurse in a local hospital, although she needs a specially adapted car to get to work. We could all celebrate that, could we not, were it not for the fact that the Department for Work and Pensions has taken her car away.

Sarah says:

“The ‘20-metre rule’ does not assess how someone’s mobility is affected by their condition. Occasionally I may be able to walk 20 metres, but on other days…I could fall…decreasing my mobility further…I could…choose not to work, but…As a nurse, I make a difference in my role, but it seems like the DWP is trying to prevent me from doing so.”

That is the human effect of the changes that the Secretary of State is overseeing.

[Chloe Smith (Norwich North) (Con)]

I wonder whether the hon. Gentleman will retract his earlier choice of words, when he separated hard-working people like Sarah of Norfolk from other—in his words—“ordinary workers”.

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[Owen Smith]

I said 20 seconds ago that one way in which I would reform the system would be to reverse the cuts to the work allowances under universal credit. That would clearly make work pay for 1 million disabled people in this country. I would start there, and I shall mention myriad other things later that the Government could do.

I would also reverse the cut to the support for disabled students. Getting qualifications is even more important for disabled students than it is for non-disabled people in this country. This summer, disabled students will be looking at their options and considering whether they can afford to go on to higher education, and they will be grossly disappointed to learn that the Government have already made it harder for them to do so through the decision to cut the disability student allowance which supports nearly 70,000 disabled higher education students.

[Chloe Smith]

Will the hon. Gentleman give way?

[Owen Smith]

I am going to finish this point. I might give way to the hon. Lady later.

Can the Secretary of State tell us how many fewer disabled students will go to university this September? I would be really interested to know, but I am not sure that the Government gather statistics on that. It would be good to know whether the cutting of that grant will mean fewer disabled students going to university. Can he explain how putting up barriers to disabled students is going to help his mission to halve the disability employment gap?

The biggest barrier that this Government have raised for disabled people seeking to enter the workplace is the cut to the work-related activity group under the employment and support allowance. That is a cut of around £1,500 a year for 500,000 disabled people whom the Government are meant to be helping into employment.

Welfare Cap

Debate between Chloe Smith and Owen Smith

Wednesday 16th December 2015 Commons Chamber

[Owen Smith]

I was here in the Chamber, and I saw the Secretary of State arrive just before the Minister rose to speak. While we are on the subject, perhaps the Minister can clear up this matter. He said to us on Monday at Department for Work and Pensions questions that the Secretary of State had visited a food bank. We submitted a parliamentary question to the Minister asking when that had taken place. The interesting answer—in truth it was a slightly slippery answer—was that Ministers, not the Secretary of State, have attended lots of things, including food banks. I gather there is another question. Perhaps he could tell us when the Secretary of State went to a food bank. [Interruption.] Clearly, he does not want to say.

As I was saying before the Minister intervened on me, it was a year ago when, to a packed House, the Chancellor unveiled his latest wheeze, the welfare cap. He had a mile-wide smirk on his face like one of the famous cats from his Cheshire constituency. He was positively purring as he laid down what he thought would be a trap for a future Labour Chancellor. He said:

“The welfare cap marks an important moment in the development of the British welfare state…and ensures that never again can the costs spiral out of control”.—[Official Report, 26 March 2014; Vol. 578, c. 374 and 381.]

He wanted Labour Members to stand up

“and say exactly what they think of the welfare cap, and tell us that they support it, and that they should have introduced it when they were in office. They look such a cheery bunch.”—[Official Report, 26 March 2014; Vol. 578, c. 380.]

Well, we are cheery this afternoon, as we look for the soles of the feet of the Cheshire cat Chancellor who has carelessly and ignominiously fallen into his own welfare cat trap. It is less a case of being hoist by his own petard, as slipping on his own smirk. Where is he today to answer these questions? A year ago, he was insistent that it would be he who would be called to account in this House for the breach in the welfare cap. He said in the same debate:

“The charter makes clear what will happen if the welfare cap is breached. The Chancellor—

not the Secretary of State for Work and Pensions or one of his Ministers, but the Chancellor—

“must come to Parliament, account for the failure of public expenditure control, and set out the action that will be taken to address the breach.” —[Official Report, 26 March 2014; Vol. 578, c. 380.]

But cometh the hour, there is no sign of the cat. He has disappeared. Even the smirk has disappeared.

[Chloe Smith (Norwich North) (Con)]

Will the hon. Gentleman enlighten us about where the shadow Chancellor is—or does he disagree with him?

[Owen Smith]

I am sure that the shadow Chancellor is up to some extremely important business. Ostensibly, the Secretary of State for Work and Pensions is meant to account for this on behalf of the Chancellor—talk about adding insult to injury or rubbing salt in the wounds, not only has his budget been raided to pay for the embarrassing reversal on tax credits and the breach of the welfare cap, but he was asked to come here to explain it to the House. I do not blame him for one minute for deciding to attend a really important Cabinet Committee instead of coming to the House to explain about the welfare cap.

First-time Buyers

Debate between Chloe Smith and Owen Smith

Wednesday 14th March 2012 Westminster Hall

[The Economic Secretary to the Treasury (Miss Chloe Smith)]

I start by joining the round of congratulations to my hon. Friend the Member for Winchester (Steve Brine). He has not only secured an important and topical debate, but spoken with real passion. I pleased to respond on behalf of the Government, both to him and to those who have also contributed with passion, whether from Blackpool, Milton Keynes, Cornwall or elsewhere. We have heard about homes, homelessness, history and our hopes for our children. We have heard about stalled development and proper community development, which I will touch on briefly. If Mr Gray will forgive me, I will also insert a small piece of history from my own constituency of Norwich North. I believe that the Mile Cross estate was the first council estate in England built outside London, something that I am very proud about. I shall stop there, before Mr Gray tells me to sit down.

My hon. Friend the Member for Winchester highlighted the package of support that the Government have introduced to help people own their home, and I will set out our progress on that. Before I do so, I will deal with some of the questions that were asked about the detail, principally by my hon. Friend. He asked whether NewBuy could be extended to existing properties, not just new properties. NewBuy builds on an industry-led scheme. That is very important, because it builds on support from both builders and lenders. It makes homes affordable, it stimulates economic activity, and, crucially, it increases supply.

The Home Builders Federation estimates that new build could deliver 25,000 additional homes in three years, supporting in turn up to 50,000 additional jobs, which I think all hon. Members will agree represents a real boost to the economy at a time when it is most needed.

On new versus existing, it is important to state that home building and the supply of new homes at present is not meeting the demand in the economy, so there is a pressing need for new build in that sense. A scheme focused on existing homes would be different and could have different financial consequences.

My hon. Friend also asked about the first-time buyer discount on stamp duty land tax, as did the hon. Member for Pontypridd (Owen Smith). Hon. Members will be aware of a review by Her Majesty’s Revenue and Customs in November 2011, which brought forth some staggering numbers that they may not be aware of. The review indicated that only 1,000 of the additional first-time buyers who bought a property between April 2010 and 2011 would not have purchased it without the relief. That 1,000 figure is derived from the 118,000 first-time buyers who used the relief, of whom it is believed 117,000 would have done so anyway. Hon. Members will agree that those remarkable numbers suggest that the relief was not effective in increasing the numbers of first-time buyers entering the housing market.

[Owen Smith]

Will the Minister give way?

[Miss Smith]

Before the hon. Gentleman asks me further questions, I must address his point about the cost of furthering the relief for a year being estimated at £150 million. I hesitate to give way to him, because in his comments and the questions that he asked me, he once again showed his party’s rather tenuous grip on credibility—if he thinks that such a sum represents value for money in helping first-time buyers and other purchasers. He then quibbled about whether the scheme that I shall outline really helps first-time buyers. He must ask serious questions if he thinks that £150 million spent in that way furthers that aim with no dead weight.

[Owen Smith]

rose—

[Miss Smith]

If the hon. Gentleman would like to justify that, I am happy to hear him.

[Owen Smith]

I would have to look at the numbers before lending them any credibility. It would also make sense for the Minister to concede that her comments are based on numbers predicated on a scheme that has not yet ended. She is talking about November numbers, whereas the scheme runs through to March. The Council of Mortgage Lenders suggested that there has been a 20% increase in the intervening period, which will radically change the figures.

[Miss Smith]

The hon. Gentleman knows as well as I do that the scheme ends on 24 March 2012. No doubt some will try to get in before then. Indeed, a review has to take place at a certain point and, on the broad thrust of a year, if figures such as those I mentioned have been achieved, it is unlikely that it would continue to be a sustainable way to support first-time buyers.

Let me turn now to the point of the debate, which is to query how we can best support those who wish to enter home ownership. There has been a clear correlation in recent decades between wider economic problems and volatility in the housing market. The best thing that we can do, first of all, to support the housing market is improve the country’s financial and macro-economic stability. That is why we are taking action to get public finances back on an even keel. Only through that action will we give people the confidence to invest in new homes and allow the building industry to go ahead and build the homes that we need.

We need to tackle the underlying structural issues that have had such negative consequences for the housing market. That is why the Government are taking action to improve stability in the credit markets and are reforming the planning system. Without such reforms we will face cyclical problems, time and again, of the sort experienced in recent years. However, we understand that we need to help people now, which is why we are taking action to help first-time buyers and other purchasers own their own home.

The effects of the recent financial crisis were particularly pronounced for first-time buyers, as mortgage lenders have cut back on low-deposit products. I can confirm, from Government figures, that the average age of an unassisted first-time buyer is 37, compared with 33 before the crisis. The Government are taking action now to help first-time buyers and others to attain home ownership.

On Monday, the Prime Minister launched the NewBuy scheme, which will deliver a significant increase in housing supply—I have already put numbers to that—and access to affordable mortgages for those without large savings who wish to purchase a new home. The scheme is not aimed at borrowers who cannot afford the mortgage, but at borrowers who lack the savings to fund a deposit, giving creditworthy borrowers a leg-up in the property market. I should like briefly to note hon. Members’ comments about second-steppers, who are important and have serious contributions to make in our effort to get the housing economy moving.

Detail on products is available to Hon. Members who wish to look for it, but I can confirm that although prior to Monday there were no 95% loan-to-value new build mortgage products on the market, today buyers will now be able to purchase a new build property with a 5% deposit. Builders are partnering with lenders to offer 90% to 95% mortgages. Three lenders are offering new mortgage products in that arena. We expect more builder-lender relationships and associated mortgage products to be confirmed over the coming weeks and months. Therefore, in total, the Government have made provision to help up to 100,000 families and young people to buy their own home.

We are committed to invigorating the right to buy, which hon. Members have applauded in today’s debate. On Monday, the Prime Minister announced that we will support social tenants who aspire to own their own home, by raising the discounts to make it attractive to do so across England. Right to buy has already helped nearly 2 million people since its introduction, but discount rates were reduced by the previous Government and the number of sales fell dramatically. From 2 April, the discount limit will be raised to £75,000 across England, so in London, for example, it more than quadruples the current limit. It will help thousands of people realise their home-owning aspirations. However, we are also committed to ensuring that it does not erode the social housing stock, which is why for every home bought under right to buy a new affordable home will be built.

NewBuy and right to buy sit within a broader suite of options intended to help first-time buyers and others into home ownership. Firstbuy, which was announced in Budget 2011, is a fixed-term measure designed to support the housing market, given constrained credit availability and challenging economic conditions. Under that scheme, the Government and around 100 house builders are together providing some £400 million to assist almost 10,500 first-time buyers to purchase with a 20% equity loan a new build property in England by spring 2013. We have had more 4,250 reservations since the scheme opened in September. The three largest participating house builders have reported sales of more than 1,200 homes in the first four months. Hon. Members will agree that those results show that the Government are taking action now, as needed, to support those who wish for the first time, or indeed at other times, to be a home owner and to continue to build the kind of communities that we all aspire to see throughout the country for our children and grandchildren.

Once again, I thank my hon. Friend the Member for Winchester for his reasoned, thoughtful and passionate contribution to the debate that he has given us the opportunity to participate in. I thank other hon. Members who have made equally passionate and inspiring contributions on what we all hope for those we represent.

Regional Pay (Public Sector)

Debate between Chloe Smith and Owen Smith

Tuesday 10th January 2012 Westminster Hall

[Miss Smith]

Absolutely—which I am clearly not ready for at 10 to 11 on a Tuesday morning.

The point that I was going to make, which is the most important one that I want to leave behind in this debate, is that the Government have set out no detailed proposals at this stage. As I think all hon. Members know, the proposal that has been made so far, through the autumn statement and subsequently, is only to ask the experts how public sector pay might better reflect local markets. I, for one, do not have a problem with that being done by letter. I hear what hon. Members have said about that. However, I am also particularly delighted that the hon. Member for Pontypridd changes his mind when facts change. I hope that in this case also he will wait for the evidence.

[Owen Smith]

Does the Minister accept that the Chancellor has clearly indicated that he is in favour of the reform? He spoke before the Treasury Committee, and no one can be in any doubt that he thinks it is a good idea.

[Miss Smith]

It is perfectly possible to think that something is a good idea and then to ask experts how it could happen.

Fuel Prices

Debate between Chloe Smith and Owen Smith

Tuesday 15th November 2011 Commons Chamber

[Owen Smith]

I presume that the hon. Gentleman could confirm—I am not going to give way to him once more to give him a chance to do so—that he spoke to the Whips beforehand. I say that because the motion does not reflect what he wanted in his e-petition. What the motion rather coyly says is that the Government should

“consider the feasibility of a price stabilisation mechanism”,

thereby conceding that what the Chancellor said he was delivering is fiction. It is not a stabiliser; it is merely a gimmick, as we have come to expect from this Government. Why should anybody trust the Tories on fuel tax? Similarly, we should not trust them on VAT because they always say that they are not going to put VAT up and when they get in, they do.

At this point, I must give Government Members a bit of a history lesson, because we have heard such rot this afternoon about the Labour Government’s record on fuel tax. Between 1979 and 1997, during the last period of Tory government, the Tories increased fuel duty fivefold—not a five-point plan but a fivefold increase in fuel duty, which went up from 8p to 45p by the time they left office. During the ’90s, when they invented the fuel duty escalator, fuel duty increased from 59% to 75% of the price per litre. That is what we inherited when came to government. It was left to Labour effectively to stabilise prices by freezing successive—[Laughter.] Hon. Members may laugh but they really ought to read the facts before they come into the Chamber and speak. Let me quote from the House of Commons note that was prepared for this debate:

“Duty rates were cut or frozen for around six years from early 2000…By autumn 2008 duty was lower…in real terms”

than at any point since 1996.

[The Economic Secretary to the Treasury (Miss Chloe Smith)]

Will the hon. Gentleman give way?

[Owen Smith]

In a moment. What is the reality of what the Government did—[Hon. Members: “Stop pointing!”] I think she is worth pointing at. What is the reality of what the Government did in the Budget? It merely takes us back to where we were in 2008. Far from it being a substantive change, this is once again smoke and mirrors from the Government. They say there is nothing they can do but there is a choice—there is always a choice in politics.

[Miss Smith]

Did the hon. Gentleman vote against the Finance Bill measures? Did he vote for the fuel duty cut that we proposed?

[Owen Smith]

We have heard that utterly specious remark all the way through. We voted against the entire Budget, which we feel is choking off growth in this country. There is a choice the Government could take—they could choose to act. They should act today and implement a plan—plan A or plan B, we do not mind what it is called. They should just do something.

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[Miss Smith]

I welcome that point from my hon. Friend and near neighbour. I should like to reassure her constituents, as well as motorists up and down the land, whether they are in rural, suburban or urban areas, that this Government have listened to their concerns and will continue to do so. However, today is not the day to try to change taxes—that is for the Budget. Today is to listen.

From our first Budget last year—indeed, from when we were in Opposition, when we said, as the hon. Member for Pontypridd has pointed out, that we would introduce a fair fuel stabiliser—this coalition Government have listened and acted. In the Budget in March, we announced a £2 billion package to support motorists at a time of record pump prices. However, the Labour party, including the hon. Gentleman, whom I do not believe was there at 4 am when many of the rest of us were, failed to support that package, which was supported by the Federation of Small Businesses on behalf of, for example, van drivers.

Before I come to specific points raised in the motion, I will explain why the Government took the action that they did in the Budget.

[Owen Smith]

Does the hon. Lady agree that the price stabiliser is not what it was described as being by the Chancellor and the Prime Minister when they were in opposition? It does not link pump prices to oil prices.

[Miss Smith]

It is the Labour party that wants a price stabiliser, and I shall come to that. Our fair fuel stabiliser aims to do other things, and I shall deal with that in due course.

Motoring is an essential part of everyday life for many households and businesses, and the cost of fuel affects us all. The Government recognise that the price of petrol is a significant part of day-to-day spending. We know that high oil prices are causing real difficulties with regard to the affordability of motoring. It is important that a responsible Government listen, consider and act.

It was the previous Government who, in the 2009 Budget, introduced a fuel duty escalator. That involved planning for seven fuel duty increases after the 12 that they had already made. None of those planned increases was subject to either oil price or pump price movements. Despite what Labour Members may claim now, and the synthetic anger referred to earlier in the debate, the previous Government had no plans whatever to support motorists. The right hon. Member for Coatbridge, Chryston and Bellshill (Mr Clarke) said, “We are where we are.” It is regrettable that the previous Government did not act to prevent us from being where we are. From the very beginning of this coalition Government, we have looked at how we could ease the burden on motorists. We acted with a £2 billion plan to ease that burden.

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[Miss Smith]

No. I am sorry, but there is not time.

I need to explain to the hon. Lady that we deferred the inflation-only increase that was planned for April 2011 to January 2012, and deferred the 2012-13 increase to 1 August 2012.

[Owen Smith]

Will the hon. Lady give way?

[Miss Smith]

No, I will not. I need to press on.

There have been calls for the Government not to go ahead with those two duty increases. I can understand that, and my right hon. Friend the Chancellor understands that, but let us not forget that those increases remained in the Budget so that we can deal with the record deficit that we inherited. This is a time of international instability, and the difficult decisions that the Government have taken to tackle the deficit have made Britain safer for householders. Our reduction plan has led to low interest rates, which help householders through their mortgages.

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[Miss Smith]

Thank you, Mr Deputy Speaker.

I need to explain that our fuel duty cut was on top of an increase in approved mileage allowance payments; that helps employees and volunteers who use their own cars. I think that, in the light of their speeches this afternoon, my hon. Friends the Members for Romsey and Southampton North (Caroline Nokes), and for High Peak (Andrew Bingham), will welcome that. That is all on top of the increase in the personal allowance, cuts in corporation tax, above-inflation increases in child tax credits, and the triple guarantee for pensioners. That is real help for motorists, businesses and families, as my hon. Friend the Member for Truro and Falmouth (Sarah Newton) said.

Let us not forget that although the Opposition have talked so much today about helping motorists, they could not even bring themselves to offer their support for the fuel duty cut, or the increase in the supplementary charge on oil and gas companies to fund it, in the Finance Bill debates.

[Owen Smith]

Will the hon. Lady give way?

[Miss Smith]

No; I am terribly sorry. Today, average pump prices are approximately 6p per litre lower than they would have been if we had continued with the previous Government’s planned escalator, which the Opposition are so keen to airbrush out of history. That means that a typical Ford Focus driver would have been £56 better off in 2011-12, and an average haulier £1,700 in 2011-12. [Interruption.] Opposition Members are chuntering and trying to suggest that motorists would be better off under their plans for an escalator and a VAT rate of 17.5%. We know that the right hon. Member for Edinburgh South West (Mr Darling) was planning to increase VAT.

The Opposition cannot say where £12 billion of extra expenditure would come from, and it is simply not true that motorists would at present be better off under the previous Government’s plans. When comparing the changes that we announced in the Budget with the previous Government’s fuel duty and VAT plans, pump prices are approximately 3p a litre lower. By the end of the Parliament, average pump prices will be 3.5p a litre lower. Cutting fuel duty and scrapping their escalator will more than offset the impact of the increase in VAT.

I shall quickly address the issue of whether oil price falls this summer have been passed on at the pump, which is a matter of concern to hon. Members who have participated in the debate and to many of our constituents. For motorists to realise the benefits, as we all wish them to do, retailers need to pass those on at the forecourt. Individual pricing decisions are for retailers—we have heard about competition from my hon. Friend the Member for Worcester (Mr Walker) and others—and the Office for Fair Trading is not aware of any evidence that would allow it to launch an investigation.

The Chancellor has made it clear that although the Government can control the duty rate it cannot control the world oil price. After such a good debate, I hope that I speak for Members from all parts of the House in saying that we all want motorists to benefit as much as possible from falls in oil prices. A number of complexities mean that pricing is not the same at every petrol station in every part of the country, but overall prices today are lower than they were at the beginning of the summer, just as they were lower at 6 pm on Budget day after we cut prices by 1p. They are 6p a litre lower because of the actions taken by this Government.

Furthermore, I regret to say that the motion is wrong about fuel duty receipts, which have not fallen by £1 billion since 2008. Official receipt data show that receipts have increased in recent years. Let me deal briefly with the fair fuel stabiliser. The support we are providing to the motorist needs to be paid for. My hon. Friend the Member for Beverley and Holderness (Mr Stuart) referred to sound Conservative principles, and this is one of which I am proud—things must be paid for—and it is fair that companies make a higher contribution. Only in that way can we support the motorist in a way that is fair, affordable and transparent. Updates on the introduction of a rural fuel duty rebate will be available to hon. Members who are interested in that, and we must do what we need to do in a sustainable manner.