Fuel Duty

Debate between David Simpson and Robert Halfon

Monday 12th November 2012 Commons Chamber

[Robert Halfon]

I am hugely grateful to my hon. Friend and, I have to say, to many colleagues in this House, some of whom are on the Opposition Benches. My hon. Friend the Member for Cleethorpes (Martin Vickers) has done a huge amount of work behind the scenes, as have many other colleagues. We will have to wait and see what the Government say in the autumn statement, but I am happy to support them because I believe that they are in serious listening mode.

I have three concerns about the Labour motion. First, it is a non-binding motion; it is just gesture politics. My constituents care about the price of petrol, not the politics. Secondly, the only way that we can stop the petrol tax is through the autumn statement on 5 December. That is how it has been done in the past few years. Yes, I am asking the Treasury for action on fuel, but what my constituents want is action on the policy—the substance. My constituents will not be looking at what happens today; they will be looking when the Chancellor makes his speech on 5 December. That is when we hope the Chancellor will listen to British motorists.

Thirdly, we need a long-term settlement for cheaper petrol. My right hon. Friend the Member for Wokingham is exactly right. The motion proposes a three-month oil rush, which would lead to motorists being hammered with a 7p tax rise in April 2013. The only way to get the long-term settlement is to work constructively with the Government and look at reform and how we can permanently lower fuel duty.

[David Simpson (Upper Bann) (DUP)]

Will the hon. Gentleman give way?

[Robert Halfon]

I may if I have time, but I will continue for the moment.

I believe that the Government are in strong listening mode, and I would not go into their Lobby tonight if I did not believe that to be the case. If we look at the Treasury amendment carefully, we see that it does not rule out stopping the planned rise in January. That is a significant move from a few months ago, when the Government said that the rise would go ahead. As I said, the Treasury team have done more to cut fuel prices than Labour did in a decade. We do not have to work at Bletchley Park to read the signals the Treasury is sending about helping with the cost of living—it is written in black and white.

I will continue to ask the Government to lower fuel duty, but I want to end where I started: this is a matter of social justice. I have stuck my head above the parapet and tabled several motions urging the Government to cut fuel duty. Inevitably, the focus in the media today has been on the economics, but this is about social justice. The average person in Harlow spends £1,700 a year filling up the family car—one tenth of their income. In essence, those families are facing fuel poverty. According to data published last year, three quarters of bankruptcies in the transport sector were the result of fuel costs. High fuel prices are adding to Britain’s dole queues. Furthermore, as the AA shows, families are choosing between buying food and filling up at the pumps.

I urge the Chancellor and the Treasury to listen to the thousands of Harlow residents who have written to me, and take action. Given everything the Treasury team have done in the past two years to cut fuel duty and given that the Chancellor’s amendment leaves the door open to cuts in fuel duty, we should at least wait for the autumn statement before casting judgment. That is why I will be proud to vote with the Government tonight, and I urge the House to vote for the amendment. I would not support the Government if I did not believe they had genuinely taken this on board. I hope they do not let us down.

Motoring Fuel Costs

Debate between David Simpson and Robert Halfon

Tuesday 14th June 2011 Westminster Hall

[David Simpson (Upper Bann) (DUP)]

rose—

[Robert Halfon]

I give way again, but then I must make progress.

[David Simpson]

The position in Northern Ireland is somewhat different from that in Harlow, because we have a land border. Currently, the Government are losing £280 million to £300 million a year on fuel smuggling and laundering of fuel. We are currently looking at the whole issue of corporation tax in Northern Ireland but, if duty on fuel were reduced or even if the suggested pilot scheme were in Northern Ireland, it would save the Government an absolute fortune, and would help the motorist and commercial enterprises in the long term.

[Robert Halfon]

As so often in Westminster Hall, as I said last week, I find myself agreeing with the hon. Gentleman. That might form part of the commission’s inquiry. At the end of July, I plan to go in a truck to Europe, to see how truckers there manage to get all their fuel cheaply, while English truckers are paying far more. The hon. Gentleman makes an important point.

Returning to my constituency, we are a town held to ransom by petrol prices. Motorists are robbed of a tenth of their salary just to fill their petrol tank. Fuel poverty is defined as spending more than a tenth of income to stay warm. That is all about domestic homes, but what about spending a tenth of income just to drive to work, which is what motorists are doing? The issue is also one for welfare reform. I welcome the Government making great strides with universal credit, lower taxes for lower earners and the Work programme. Yet all those benefits could be wiped out by the rising cost of fuel. Every 1p increase in the pump price will cost the average Harlow motorist £13 a year. For someone on a low income, perhaps commuting from Harlow to Basildon, the actual cost would be much higher. Inflation soon adds up, and we must not let petrol prices become part of the poverty trap and deter people from getting off benefits and into work.

Nor should we forget rural constituencies. My hon. Friend the Member for Hexham (Guy Opperman), who cannot be here because of his recent operation, has campaigned for many years against the fuel poverty suffered by his constituents. He wrote to me yesterday:

“fuel is a necessity in a constituency of 1,000 square miles, not a luxury.”

Throughout the country we see the same tragedy.

Government Skills Strategy

Debate between David Simpson and Robert Halfon

Wednesday 19th January 2011 Westminster Hall

[Robert Halfon (Harlow) (Con)]

First, I would like to register an interest. I have an apprentice in my office who is paid partly by a local businessman, Mr Dean Barclay, and partly by Essex council.

One good thing about skills and apprenticeships is that they are not a party political football. We may sometimes disagree on the right approach, but all sides of the House want to see more jobs for young people and an internationally competitive Britain. As a new MP, I know that many hon. Members care deeply about the problems of youth unemployment, and there are many others who know more about that issue than me.

However, when one looks at the manifestos, initiatives, Whitehall targets and, crucially, the Budget Red Books from the past 20 years, there is a clear conclusion—for decades, the focus has been university, university, university. Let me be clear: I am not anti-university. I was lucky enough to study at Exeter university, which I would recommend to any student. [Interruption.] My hon. Friend the Member for Bromsgrove (Sajid Javid) is present. He was at Exeter university at the same time.

The massive expansion in higher education has left us with problems. First, the poorest have not really benefited. The representation and likelihood of success at university remain highest among young people with wealthier parents, and lowest among those from deprived neighbourhoods. Young people from our poorest housing estates are still the most likely to drop out, take one gap year after another, defer enrolment, and switch, repeat or continually restart their course. Secondly, there is a skills deficit. For years, construction has represented about 10% of our GDP, but we have consistently imported much of that labour from Europe. We have created a rootless, undereducated and jobless generation of graduates who do not always have the right skills for our growth industries.

Finally, there is a NEET problem. Despite the efforts of the previous Government, the number of young people who are not in employment, education or training rose year after year. Between 2000 and 2010, the number of NEETs aged between 16 and 24 steadily increased from about 600,000 to more than 1 million. That was not a temporary blip due to the recession; it was a structural problem that got worse and worse. Research by Edge, the vocational skills organisation, shows that two out of every five teachers push A-levels as being the best route to university, and believe that vocational routes are a risk because they rule out university altogether. The research shows that apprenticeships are seen by many parents as a second-class option or a B-grade back-up for young people who cannot handle—or cannot be bothered with—writing essays. I believe that apprenticeships are a forceful answer to the problems of social mobility, our skills deficit and the rising NEET population.

[David Simpson (Upper Bann) (DUP)]

I congratulate the hon. Gentleman on securing this debate, and offer apologies to the Chair. The Northern Ireland Affairs Committee is sitting today and I must leave early to attend that. He mentioned the needs of young people. Does he agree that, although we can have Government strategies and 50,000 new apprenticeships, or whatever, we must also have universities and FE colleges that provide the right courses? There is no point in someone going for an NVQ in politics if they are going to be a mechanic. We need a cocktail of measures, and our universities and FE colleges must provide the right courses to benefit young people as we go into the economic revival. That will certainly help industry.

[Robert Halfon]

The hon. Gentleman has said in 20 seconds what I will say in about 20 minutes. I agree with him entirely and that is an essential part of the skills strategy. It is no good having courses and apprenticeships if they do not provide what business and industry need.

--- Later in debate ---

[Robert Halfon]

Yes. What my hon. Friend has just said, and particularly the fact that he has managed to secure the Minister responsible for apprentices for the event in his constituency, shows exactly why he is such a champion of apprentices. Something has come through to my office about MPs becoming apprentices for a day, and I hope very much to be able to do that during apprenticeship week.

I should also mention that my apprentice is partly funded by a local business man, who employs eight apprentices and 13 ex-apprentices in his construction firm. He wanted to support us because he was an apprentice many years ago. He is a real example of the social capital that can be built when employers take apprenticeships seriously, as the right hon. Member for Oxford East (Mr Smith) said.

The philosophical heart of the Government’s paper is that the world is too complex to be planned and delivered centrally. Hon. Members on both sides of the House will, I hope, welcome the new freedoms that the Government are devolving to further education colleges, with the simplification of budget lines and the reductions in audits and form-filling. Harlow college used to receive umpteen different ring-fenced types of funding for adult learners, all of which had to be monitored, with no flexibility to move funding between them. Now, there will be a single funding line for adults. It will be a much simplified system, with less paperwork.

At the same time, the quicker the Government can move to do the same for funding for 16 to 18-year-olds, the better. Harlow college at one time had 50 separate funding lines for 16 to 18-year-olds, all requiring separate reporting, which is bureaucratic insanity.

Possibly the greatest freedom that the Government are giving FE colleges—I am very excited about this—is the chance to bid for and run university technical colleges. The Minister is working closely with my right hon. Friend the Secretary of State for Education and with a former Education Secretary, Lord Baker, on their roll-out across the country. Like the old institutions that taught technical skills, although they will not be seen as second grade, university technical colleges will combine English, maths, information and communications technology and business skills with specialist subjects that require technical equipment—for example, engineering, product design, construction and environmental services. They will be part of the Government’s massive expansion in academies and, crucially, a conveyor belt to level 3 and 4 apprenticeships and higher education. As a major structural reform, university technical colleges tackle head-on the problems of low prestige and poor routes to university from which apprenticeships are suffering.

I have met several times Lord Baker and representatives of Essex and Harlow councils, Harlow college, Anglia Ruskin university and Pearson UK about the prospect of a UTC in Harlow. Lord Baker has visited Harlow college himself—as has the Minister—to try to bring that into being. Only last week, the Minister reminded us that Harlow college

“is an exemplar in so many ways.”—[Official Report, 13 January 2011; Vol. 521, c. 411.]

Under the principal, Colin Hindmarch, the college has been transformed from being at the lower end of the league tables to being nationally competitive. Indeed, it is rapidly becoming one of the best colleges in England. In terms of value added—how much a student improves between starting and finishing their course—it is one of the best places to study in the UK. I am delighted to tell hon. Members today that Pearson UK—a national firm based in Harlow—is examining how it could support the college’s bid for a UTC in Harlow, perhaps with an application later this year.

The former Prime Minister, Tony Blair, has argued that we have not really decided as a nation whether we want American levels of taxation or European levels of public services, but increasingly I think that that is a false choice. When the private sector makes a voluntary contribution to enhance a public service, it can result in the best of both worlds. As the Government’s strategy paper states, the cost of training

“should ultimately be shared between employers, individuals and the state to reflect the benefit each receives.”

So long as there is no barrier to access, such as up-front fees for courses inherited by the Government, sharing the cost is fair, as it recognises that education is both a private and a public good.

I clearly support the Government’s strategy on skills, but I believe that further steps need to be taken. I recently met apprenticeship organisations, from livery companies to UK Skills and from the Association of Colleges to Edge, each of which represents a different part of the jigsaw of occasional qualifications. We discussed the idea of establishing a national society of apprenticeships, even a royal society, similar to the Law Society or the British Medical Association—or, better still, the Royal College of Surgeons. I tabled early-day motion 587 in support of that notion and raised the proposal in Parliament. A society with membership benefits such as high-street discounts and social events would dramatically increase the prestige and culture of apprenticeships. The Minister will be aware that I have been holding discussions with relevant groups, businesses and student organisations for a number of months, and I hope that we and the Government will be making an announcement in the near future.

Secondly, last week I spoke to the Minister about the pioneering wage-subsidy scheme run by Essex county council, and asked whether the Government would consider encouraging other local authorities to roll it out.

[David Simpson]

I thank the hon. Gentleman for giving way a second time. He has hit upon a poignant matter: the incentivisation, if that is the proper word, of young people to go into apprenticeships. There needs to be some financial reward or incentive. In my constituency, 15 or 20 young people may start an apprenticeship course, perhaps at an FE college, but only five will finish it because the finance is not there. It is difficult to get companies to sponsor apprentices in the current economic climate.

[Robert Halfon]

The hon. Gentleman is exactly right. Part of the problem with people who want to do apprenticeships is that they cannot afford to do so. I am lucky that the apprentice in my office lives with his family; it would be much harder if he did not, as the apprentice wage is just under £100 a week. That is why we need a royal society of apprenticeships. That is why I am working with student organisations and others to bring about an incentive scheme. If we change the culture and prestige of apprenticeships, there will be a genuine substantial financial incentive for people to become apprentices. Another big problem relates to single parents wanting to do apprenticeships. The Essex county council scheme is specifically directed at such low-income groups, and it needs to be replicated.

I believe strongly that companies tendering for Government contracts should include a clause in their agreements that will boost apprenticeships. I suggested that Essex county council should consider including such a clause for its major construction projects. Today, I received confirmation that it is committed to making that happen; all who tender for major construction works with Essex county council will need to have an apprentice. That is an important step.

I turn to the question of EMA reform. A debate on the subject is taking place in the main Chamber as we speak, but I wish to discuss the matter with the Minister. A central aspect of further education is the affordability of studying, and getting young people not only to start but to finish their courses. I support reform of the educational maintenance allowance, as I accept that there are flaws in the current system. However, certain factors might affect students and apprentices, particularly those from deprived backgrounds. I shall use my local college as an example.

Nearly two thirds of learners at Harlow college receive the EMA, and 80% of them receive the full £30 a week. The college estimates that between 300 and 400 learners at Harlow—about 10% to 15%—depend on the EMA for lunch and dinner and for travelling to college. Those learners are the most vulnerable, from the poorest housing estates. The next tier is made up of a further 300 to 400 learners, another 10% or 15%, who are not the very poorest but are still from deprived backgrounds—people who strive and work hard. Without the EMA, they would need part-time jobs to increase their income significantly, but given the job market today that is not easy.

Harlow college is not stuck in the past, and it welcomes reform. It is not reactionary and does not represent what Tony Blair once described as the forces of conservatism. Whatever system we put in place, however, we must recognise the different financial positions of those two groups. I have discussed with the principal of Harlow college making the EMA, or a centrally administered college fund, dependent on improvement rather than attendance. It is something that he supports. We believe that learners should earn their money not simply by showing up, but by being punctual, behaving well, working hard and making good progress. As with apprenticeships, it would teach young people the work ethic. For level 3 courses, there are several value-added measures, including the key stage 5 achievement and attainment tables, that can be used at the end of a course to measure the success of tying EMA funds to achievement.