(11 years, 1 month ago)
Commons ChamberI am not going to get into the semantics of the difference between consensus and common agreement, but I hear what the hon. Gentleman says.
I am pleased the Government have done quite a lot of listening. They have brought forward a number of amendments and put forward various propositions. Some people are claiming what the Government are saying will not work in practice in the way they say it would, but that is a reason for having further discussions, instead of forcing inadequate law through this House.
I share some of the concerns of the hon. Member for Christchurch (Mr Chope) around the muddle and clutter in the Bill in relation to variable commencement dates and the transitional provisions. The Government may well say that the clauses are framed in a way that allows for slippage if that is needed, but slippage at the hands of a Minister in relation to commencement will give rise to suspicions of slipperiness and the possibility of partisan motivations. The variable commencement provisions that apply to different parts of part 2 are evidence of just how scrappy the thinking has been, and provide an argument for there being a longer pause for thought.
I wish to speak particularly in support of new clauses 2 and 3. Some Members have said that neither of the clauses on their own goes far enough. That may be so, but they do recognise gross deficiencies in the Bill. They may not meet them in full, but at least if this Chamber agrees to these amendments it will be creating a basis on which there will be further amendments and further consideration to meet those gross deficiencies. It is a derelict argument to say that, because they do not completely meet the deficiencies, we should not adopt them. There are even more inadequacies in the Bill that we would leave unamended, so saying that they do not go far enough and would need to be supplemented by other changes should not be used as a justification for voting against them.
New clause 2 refers to the very confusing impact this legislation would have in the context of the devolved areas. I have a particular interest in Northern Ireland, of course. I have no wish to bungee jump in and out of the debate about the Scottish referendum, but I take on board the point that has been made on a number of occasions by the Chairman of the Political and Constitutional Reform Committee and we need to hear it answered as it seems to be a pretty basic and fundamental one.
I want again to inform the House that many Members have referred to the vast numbers of third sector groups—charities, Churches, policy advocacy groups—that have expressed concern throughout England, Scotland and Wales, and they have also done so in Northern Ireland. In many ways their concerns are even more vexed because, as the hon. Member for Caerphilly (Wayne David) has said, civil society in Northern Ireland has been playing a significant, telling and growing role in helping to move politics on and improving the content and climate of political debate in Northern Ireland.
(12 years, 7 months ago)
Commons ChamberDoes the hon. Gentleman also hope to have clarification from the Government of why, if the measure is about deficit reduction, they have refused to say that it will be reviewed or revised when the deficit is reduced? It will not necessarily be temporary, whereas the Chancellor was very clear that the 50p rate, while he adhered to it, would only be temporary.
Absolutely. The hon. Gentleman makes a very good point. He may be of an age to recall what happened in the 1970s when we had the International Monetary Fund dictating to the then Labour Government what they should do to bridge the fiscal deficit that existed then. One of the measures that was introduced as a result was, in effect, an income tax surcharge which was retrospective for a year, but everybody who had been paying tax at a particular level had to pay a surcharge to help deficit reduction.
It would be possible for the Government to do something similar in this Budget to put a time limit on that, but the problem is that because of the enormity of the mess that the previous Administration made of things, we will not begin to reduce the debt until well on into the next five or seven years. In the meantime our debt will go beyond £1.5 trillion, so I am not sure that if we introduced a time limit, it could be an early time limit. It might have to be reviewed by Government in about 20 years. However, I take the hon. Gentleman’s point. Before he intervened, I was about to conclude my remarks as I know that many more colleagues wish to lay into the Opposition on their wholly misconceived amendment 1.
(13 years, 11 months ago)
Commons ChamberMy hon. Friend asks a rhetorical question. The answer is that I am not sure where Ireland was at that time.
I agree with my right hon. Friend the Chancellor that we should allow the Irish to have their own domestic policy. That is why it would not be right for us to interfere with their low corporation tax policy—it should be for them to decide. However, the other side of the coin must be that we let the Irish take the consequences and accept the responsibility for what happens as a result. We cannot say, “We’re going to help pay for the consequences while not being able to influence the policy.” I find what is proposed very intellectually trying to deal with.
When we have a border—our hon. Friends from Northern Ireland have made their points about this—that low corporation tax policy makes things much more difficult. Indeed, it is possible to argue that we have lost the corporate headquarters of major international organisations from London to Dublin as a result of Ireland’s low corporation tax policy. Now we are subsidising that policy, the consequences of which are that the Irish have been unable to meet their financial obligations and are desperate for additional loans. I am not convinced that we should be getting involved with British taxpayers’ money. It would be different if we did not have an awful national debt crisis, but we do. One consequence of the Bill, if it goes through today, may be to send out a signal to our constituents that says, “Don’t worry, the debt crisis is not as bad as we’ve been telling you, because we can afford to add to that debt further by giving a soft loan to the Irish.” At the same time, we are having to argue to our constituents that we cannot put pressure on the banks to give more soft loans to businesses, even if those businesses go bust or cannot expand as a result, with all the damaging consequences for employment that that would have in our country, so I am not convinced.
Does the hon. Gentleman not acknowledge the scale of the exposure of British banks in the Irish Republic’s economy or the key dependence of Northern Ireland’s economy on the role of some of the Irish banks?
Of course I acknowledge that, because it is a fact. However, my hon. Friend the Member for Chichester (Mr Tyrie) made the important point that, in negotiating a bilateral deal, we might have been able to deal with the debts owed to those banks and, in a sense, directed any money that we wanted to give into those British banks, rather than into the Irish coffers in general. We could have linked those things, if that was what was needed. However, I do not think that the difficulties of those banks are a justification for increasing our national debt further in the way that the Bill proposes.
(14 years ago)
Commons ChamberI am against the Bill because of the lack of flexibility in it. From what the hon. Member for Foyle (Mark Durkan) has just been telling us, I think he agrees that if we have a fixed-term Parliament, a lack of flexibility is inevitable. He said that in the current constitutional and financial crisis in Ireland it is reasonable that its Parliament should be able to call what he described as an early general election rather than an immediate one.
However, the consequence of the Bill will be that if we had a constitutional and financial crisis in this country similar to the one besetting the Irish people—God forbid that that should happen—the hon. Gentleman or I might ask my right hon. Friend the Prime Minister whether he intended to call an early general election so that the people could have their say. Under the terms of the Bill, the Prime Minister would turn around and say to me or the hon. Gentleman, “I am sorry, but I don’t have the power to call a general election now. The only way I can engineer one is for you to put down a motion of no confidence in me, with the humiliation that it would involve, or for me to try to get a two-thirds majority in the House to facilitate it.” The Prime Minister would lose the right to call an election. The Minister seems to think that is a good idea, but I do not. I trust the Prime Minister’s judgment on such issues, and I think we should trust the people and let them decide.
When our good friend Edward Heath was Prime Minister, he decided to call an early general election to deal with the miners’ strike. The people reached their verdict. Basically, they said, “We think that you have proved yourself unworthy to remain in office.” The fact that a Prime Minister calls an early general election does not necessarily mean that they are going to win it. Whether they win or not is a matter for the people.
If there was a financial or constitutional crisis, such as the one in Dublin, a reasonable Prime Minister—I should like to think of my right hon. Friend the Prime Minister as a reasonable man—would say, “In the light of what has happened, we should call a general election. We should call it now. We should not have to have a contrived vote in the House of Commons. I wish to go to the Queen and ask her to exercise her prerogative to call an immediate general election.”
In Dublin, a budget needs to be passed and then people can make a legitimate judgment. The imperative is to get a budget passed to create some economic and financial stability to boost confidence in the wider markets—not just for the Irish economy but for other economies both inside and outside the eurozone that will be under pressure. There will be an election in late January and that is known, but at least the Dail has the opportunity to pass a budget.
I will not get involved in the detail of what is happening in Ireland at the moment. If a similar situation were to happen in this country, people might well turn to their Members of Parliament and say, “Why should we trust this Government to pass another Budget when it has made such a Horlicks of the current arrangements? Why don’t we elect a new Parliament and a new Government to deal with the crisis?”