(10 years, 5 months ago)
Commons ChamberAbsolutely. I concur with my hon. Friend, and that is one reason why more money has gone into apprenticeships as well.
My second point concerns GDP growth. A year ago, the OBR predicted growth for 2013 at just 0.6%. In fact, it came in at three times that level, and the forecast for next year has changed from 1.8% to 2.4%.
Thirdly, inflation now sits at 1.9%, well within the range set by the Bank of England. Fourthly, thanks to our low interest rates, the cost of borrowing by individuals, banks and the Government is low. But, of course, low interest rates are not so welcome to savers, hence this important announcement to end compulsory annuities, making it cheaper and simpler for pensioners to draw down their savings.
My hon. Friend mentions that inflation is low. Is it not the case that wage inflation this year is likely to be higher than inflation, which means that finally we will see an end to the wages crunch?
Again, my hon. Friend makes a valid point.
Finally, I come to the deficit, and how much the Government must borrow to balance the books. The OBR predicts that the deficit will continue to fall. We should remind the Opposition that when they took office in 1997, they inherited a sound economy. Up to 2002, the Labour Government made a surplus. Then the wheels came off, one by one. By 2004, the deficit was up to £33 billion, by 2008-09, it had increased to £69 billion, and in their final year of office, they had to borrow £156 billion to balance the books. Thankfully, a change in Government brought in a new economic strategy and our deficit has reduced to £108 billion this year, which will drop to £95 billion next year. If we stick to this economic plan, we will balance the books by 2018.
Of course, productivity, exports and savings figures are not what they should be, and the Budget addresses that. Time is limited and I cannot go into the details, but I welcome greater incentives.
(13 years, 5 months ago)
Commons ChamberFirst, I am aware of where the US now stands and, secondly, I am not attacking anyone, but simply asking for some form of clarification of why Germany has taken the stance it has. I have inquired about it, but got no reply.
On the issue of why countries might be reticent, the particular dictator we are dealing with is a relevant issue. Gaddafi had, after all, turned his back on terrorism; he had stopped funding the IRA; he had paid compensation to victims of the Lockerbie bombers; he had suspended his nuclear programme; and he was no longer seeking weapons of mass destruction. He was co-operating with the EU on the movement of refugees. Yes, he might well be bad, but what will his successor be like? If we want to avoid another Somalia, perhaps we should keep this guy.
We also need to bear in mind the reputation we gain for wandering into countries, particularly in Arab countries such as Iraq. I happened to disagree with our invasion in 2003, but the long-term consequences of it on Britain’s reputation in the Arab world as a whole are huge—and stay with us to this day. This reticence to go into Libya is strengthened by reports circulating in America that suggest that twice as many foreign fighters against the US in the Iraq invasion came from Libya than from any other part of the Arab world. I can understand those arguments, but I do not agree with them.
The first problem is that such arguments fail to recognise the changing mood across the Arab nations. The mother of all Parliaments here should, after all, encourage democracy. The world is a much smaller interrelated global community. Oil prices, stock exchanges, trade movements and deals, business interests and so forth: for all these, we are so much more interrelated in comparison with the independence we used to have—perhaps enjoyed—in the decades and centuries before. Politicians move; ideas are set; and there are consequences when an event happens in one part of the world—whether it be a natural disaster as in Japan, or a human catastrophe such as we are seeing in Libya, with the movement of refugees and so forth. We cannot dissociate ourselves from what is going on in north Africa.
There are also more moral questions. One issue not much talked about is the level of genocide. How many people need to die before we wake up and say, “We must step in”? I am reminded of the spokeswoman who, in May 1994, said of Rwanda—Members might recall it from the films about the country—that the word “genocide” should not be used, and that “acts of genocide” should be used instead. She could not bring herself to use that term.
Apparently, 5,000 people have already died in Libya. We must ask ourselves at what point we should make a judgment from a moral perspective, let alone a legal one.
The Prime Minister has made clear three requirements for the establishment of a no-fly zone: a need for it, legal grounds for it, and of course regional support. Unfortunately, the dithering that has taken place over the last couple of weeks has allowed Gaddafi to regroup his forces. It has allowed to him to recruit mercenaries—because he cannot trust many of his own troops—and to steal the initiatives.
We should also ask ourselves why the “good” dictators, if I may call them that, have stepped down in this Arab spring, while the bad dictators—the ones who stay in there and fight—are being rewarded by being allowed to keep their jobs. Our failure to support the people in that regard sends a message to the other dictators, who say, “Let us hold our ground. Let us stick it out.” That is what will happen if the international community is not organised enough, and has not the necessary gravitas and determination, to mount a challenge.
The Arab League has been mentioned, and I referred to it in an intervention. The Arab League has no power. It is a group of Foreign Ministers who have no influence over the dictators to whom they report back. Moreover, Arab forces have never been organised. If we look back at the 1948, 1967 and 1973 wars, we see that they have never been united. If a no-fly zone is imposed or intervention takes place, it will not be through those Arab nations. Their armed forces are nowhere near as strong as they seem to be on paper.
It is also necessary for us to understand the terrain. As I said when I intervened on the hon. Member for Birmingham, Edgbaston (Ms Stuart), a no-fly zone in Libya would be very different from a no-fly zone in Bosnia or Iraq. We need to understand the structure of communities in Libya. There is one long road leading from east to west which contains two main cities, two main groups of communities in Tripoli and Benghazi. We should control Libya with not just a no-fly zone but a no-drive zone. Such a measure would be far easier to implement than any that we have seen before.
Allowing Gaddafi to stay will have a number of consequences. There will be repercussions for his own people, and questionable alliances will develop. Gazprom will eye the region with envy, and will resolve to take over all the operations in north Africa and Libya in particular if Gaddafi stays. That may be one reason why it is not willing to support a no-fly zone.
We have also touched on military tactics. What is the purpose of a no-fly zone? Is it humanitarian or military? Those of us who have served in the military know that it is a force multiplier—a way of creating an advantage for one side or another. It would probably be necessary only to create a no-fly zone over Benghazi initially, and then to move forward from that. A no-fly zone is intended to prevent aircraft from moving, but that can be done in another way. A Storm Shadow missile could be fired right now, landing on the runways and preventing the aircraft from taking off in the first place. The aircraft that are available are not good, and many of them are already in rebel hands. There are other questions we should ask about tactics. We tend to grab at labels and to say, as armchair generals do, “That is what we have done in the past, so that is what we should do now.”
My hon. Friend asks, “What is a no-fly zone?” That is exactly the question that should be asked. Does he agree that it should not be merely a humanitarian air umbrella protecting people from being attacked in Benghazi, but should extend to Tripoli, so that Gaddafi cannot import more mercenaries—his merchants of death?
We are getting into the weeds here. We need to step back and consider the creation of a no-fly zone from a strategic perspective. What is our mission in supporting the rebels, rather than trying to create something about which the military tacticians need to decide? We must determine what our strategy is. A no-fly zone may be part of it, and the extent of the no-fly zone might be considered as well.
We are becoming very focused on Libya, but I mentioned the importance of Egypt in another intervention. The revolution there is not complete. There are worrying signs, such as the agreements that we have seen between the Muslim Brotherhood and the armed forces. People are being told, “You can only be a full citizen of Egypt if you can prove that your grandfather and your father were born in the country.” That completely removes a group of middle-class citizens who could possibly help to establish a new political society. We must not lose sight of where Egypt is going. Because it is so influential in north Africa and the Arab world in general, where Egypt goes other nations will follow.
Many comparisons have also been drawn with the changes following the fall of the iron curtain, and they are useful to some extent. However, communism was a one-party system, and it is far simpler to make the transition from that to a democracy—especially as many of the countries concerned were democracies prior to being entrapped behind the iron curtain—than it is to make the transition to democracy from a dictatorship, where the power is focused on an individual and the society is based on fear. Huge dangers arise when oppressive rule is released from its shackles, when they have been broken because of the creation of a power vacuum. We should consider our experiences in Afghanistan: 10 years after we wandered in there and tried to install some form of democracy, we are still struggling.
The world has been following the latest headlines very carefully. As we speak, Gaddafi is doing exactly what I said he would: he is deliberately bombing the runways in Benghazi to stop the rebels using their planes. The world is asking why the international community is not doing more, and the people of Libya are asking the same question. The turbulent chapter in world history that we are now experiencing, and which opened with the fall of President Mubarak, is far from over, and future generations will judge the current generation of leaders on its outcome.
At the heart of the matter is freedom, and the desire to grasp a rare opportunity to sow the seeds of democracy as people-power tries to usurp dictatorships across north Africa and the middle east. Events in the middle east are testing the international community, and they are moving too swiftly for us to be able to be a positive influence or force. To do nothing is to leave things to fate, and I fear that Iran is not going to do that, and nor is al-Qaeda. It is a sad irony that the global community is more than willing to help on one side of the world in saving and rebuilding lives after a natural disaster, but fails to act to prevent, or intervene in, a man-made disaster.
For Libya, the window of opportunity is closing. Gaddafi has taken advantage of our collective dithering to regroup and unleash hell on those who dared to stand up to him in the name of democracy. Across north Africa and the middle east I believe that, unfortunately, the worst is still to come, and the west must be better prepared to respond.
I shall end as I began, by praising the work of our Government and the lead they have taken. I only hope our allies will now play catch-up.