Oral Answers to Questions

David T C Davies Excerpts

Tuesday 9th July 2013 Commons Chamber

[The Deputy Prime Minister]

Of course I acknowledge the fact that the success of the Silk commission is that it has mobilised such cross-party consensus and support in Wales. That is why, far from treating the recommendations with contempt, we are treating them with a great deal of seriousness. I accept that that is taking a little longer than the hon. Gentleman might want, but when we announce our response to the 33 recommendations I hope he will be pleasantly surprised at our forthcoming and forward-leaning approach.

[David T. C. Davies (Monmouth) (Con)]

Does the Deputy Prime Minister agree that it would be utterly wrong to allow yet further powers to be given to the Welsh Assembly before we have resolved the problem of what we do about English devolution?

[The Deputy Prime Minister]

I do not think one should seek to be too neat about these things. Of course I accept that there is an issue with how English votes on issues that affect only English constituencies are dealt with in this House. The McKay commission examined that, and we are now reflecting on its recommendations, but that does not mean that we should somehow freeze in time an ongoing process of devolution to other parts of the United Kingdom.

Oral Answers to Questions

David T C Davies Excerpts

Wednesday 3rd July 2013 Commons Chamber

[Stephen Crabb]

The hon. Lady is absolutely right to raise the technical challenges involved in a new relief road for the M4. She will have noted the Welsh Government announcement that they will shortly launch a consultation on the details of the scheme, which will provide her local community with every opportunity to express concerns and, we hope, get answers to their questions.

[David T. C. Davies (Monmouth) (Con)]

I applaud the Minister for his determination to go ahead with this much-needed project, which has been blocked so many times by members of the Labour party in the Welsh Assembly. May I also urge him to ensure that it is linked to an announcement about the future of the Severn bridge, as motorists are struggling to pay the costs of it, just a few years before it is returned to the Government?

[Stephen Crabb]

I thank my hon. Friend for his question. As I said in answer to a previous question, I am not going to pre-empt any announcement today. I recognise the concerns of the Chairman and other members of the Select Committee about the high tolls on the Severn bridge, but we are not in a position today to make any comment on what lies beyond 2018, when the current concession comes to an end.

Oral Answers to Questions

David T C Davies Excerpts

Wednesday 15th May 2013 Commons Chamber

[Stephen Crabb]

I followed closely yesterday the questioning of the Under-Secretary of State who has responsibility for welfare reform. His comments about sleeping on sofa beds were made in the context of families where the parents have split—he discussed whether there is a duty on the state to provide benefits sufficient for each separated parent to have family-sized accommodation for children during the same week. If the position of the Labour party is that they should have such provision, it should be stated clearly from the Opposition Front Bench, but picking up all the costs of relationship breakdown in that way would be an enormous burden on the taxpayer.

[David T. C. Davies (Monmouth) (Con)]

Is it not the case that, despite the jeering and catcalls from Opposition Members, they will make no commitment to reverse those reforms, which have been introduced because of the financial mess the country is in? They know that better than most since they were the ones who caused it.

[Stephen Crabb]

As ever, my hon. Friend is correct. The Opposition’s position is characterised by two things: opportunism and hypocrisy. They know they will not reverse the changes if they ever form a Government again.

Debate on the Address

David T C Davies Excerpts

Wednesday 8th May 2013 Commons Chamber

[Dame Anne Begg]

I am delighted to hear that and perhaps we will come back to the Bill if it is not amended enough.

We welcome the single-tier pension because it will generally mean more state pension for those who have the least. Groups that have lost out in the past with regard to the state pension will benefit—they will generally be women, carers, people with broken work records, and those such as the self-employed who have been unable to build up any kind of second state pension. They will see the immediate benefits of the introduction of this system.

There will, however, be those who lose out, and one main change will affect those who have already made decisions about their retirement. At the moment, someone can qualify for a full state pension after 30 years of national insurance contributions. The Bill increases that to 35 years, but there is already a group of people who have decided to retire although they have not reached pensionable age. They will not necessarily be in a position to build up 35 years of national insurance contributions before they reach the new single-tier pension. The Committee makes recommendations about buying back national insurance years and contributions, but a huge communications job will be necessary to ensure that people are aware that the number of qualifying years has now changed. I will say more about communications in a minute.

It was interesting that the Minister went on the airwaves earlier this week with regard to one group of people who will definitely lose out—women who get only a pension derived from their husband’s contributions. I am not sure why the Minister spoke about that in terms of the wives of expats, but it was possibly because a large number of those who will be affected by this measure live abroad. The measure will, of course, also affect women in this country. That seems to have come as a complete surprise to many and perhaps explains why a lot of people think they will be better off under the new system when in fact they will not because their spouse will not qualify for any of the new derived rights. Basically, what used to be known as the married woman’s allowance is going for everyone.

The Committee has a recommendation for the Government:

“We welcome the Government’s sensible transitional solution to the potential adverse impact on employed women who chose to pay reduced NI contributions under the Reduced Rate Election—”.

That was often called the small stamp or the married woman’s stamp. It was a long-running sore that had never been cured, so good on the Government because it has now been solved. They have come up with a transitional arrangement that will allow women who paid the small stamp to get full credits and qualify for the single-tier extension.

That does not apply, however, to those who will get nothing as a result of the abolition of their derived rights. The Committee report states:

“We believe that it should also be possible to find a solution for another small group of women: those who did not build up their own NI record because they had a legitimate expectation that they would be able to rely on their husband’s contributions to give them entitlement to a Basic State Pension. One option might be that women in this position who are within 15 years of State Pension Age should be able to retain this right. We recommend that the Government assesses and publishes the cost of providing this option for the relatively small number of women affected. We believe that, for those further from retirement, there is sufficient time for them to plan on the basis of the new rules.”

One reason we chose the period of 15 years from retirement was that it had to be more than 10 years. The Bill says seven or 10 years, but the Committee recommends that it should state anything up to 10 years, because people will probably need to have 10 years’ worth of contributions before they get any state pension—they will get nothing for less than 10 years’ worth of contributions. The Committee believes that people within 15 years of retirement with no national insurance contribution, who would have expected to get their pension through their spouse, should be protected, and that there should be transitional arrangements for them. Anyone further away can make up some of the shortfall—not all of it—in the intervening time.

[David T. C. Davies (Monmouth) (Con)]

I am grateful to the hon. Lady for giving way and for the reasonable way in which she makes her points. Without trying to jump ahead, what does she make of suggestions that the Government will prevent spouses who have never set foot in the UK from receiving a state pension? I suspect most Government Members fully support those proposals, but does she support them?

[Dame Anne Begg]

The Committee did not say that we were against the abolition of derived rights in principle for future pensioners. We accept the Government’s argument that people should have a state pension in their own right, and that they should accrue their own credits to get it. The consequence is that there will be no married woman’s allowance in future. The problem I have addressed is how we get from the current position to that one without being unfair on the group of women who are within 15 years of reaching their pensionable age. As the Bill stands—we hope it might change by tomorrow—that group of women will get nothing from April 2016. The Committee believes that that is a particularly harsh cliff edge. We have no problems with what happens in future. Because women work or because of changes made by the previous Government in how national insurance can be credited for caring—not only for children, but for disabled adults or elderly relatives—women are more likely to have credits towards their own pension, which previous generations did not have. We accept that the world and society have changed and that, as a result, women who have not been in this country and who have not been in a position to build up credits will not get a pension in the long run.

The Government face a problem in getting over to people exactly what the pensions Bill means. They have concentrated on saying that the new arrangements are much simpler and easier to understand, which is understandable. They have said, “The new single-tier pension will be £144, and that’s it. That’s all you need to know.” However, as a result of that simplification of the message, people have got the wrong end of the stick with regard to what it means in their individual cases. That is why it is crucial that the Government think again on a clear communication strategy. That should start as soon as possible, and not wait until the Bill has become an Act of Parliament. In anything to do with pensions, planning is so long term that people have to be sure about what they may expect. If things are going to change, people have to know they are going to change. That is especially true of the group of women born in 1952 and 1953, as they have suffered a double whammy with the increase in the state pension age. Many of them are worried that they will lose out, but they may not. The point is that they do not know, and the Government have not been able to give them enough information or explain what will happen.

This week I got a letter from a lady who was convinced that she will get only £144 a week because she will reach pension age after April 2016. She has paid SERPS all her life and she is convinced that the Government will steal her SERPS from her. She does not know that she will get whichever is higher—SERPS or the single-tier pension. One gentleman thinks that it is really unfair that he has paid SERPS all his life, but will get only £144, whereas his next-door neighbour, who was contracted out and gets an occupational pension—and has been paying less national insurance—will also get £144, but of course that is not true. The person who has been contracted out will lose out, depending how the calculation goes. The calculation is a complicated one and the headline message has continued to be that everyone will get £144 for their state pension, so many people think that the introduction of the new scheme is unfair.

I have to say that initially some people who had already reached pension age were keen to get on to the new system until they realised that they would not necessarily be much better off. They are not quite so keen now to get on to the single-tier pension. It is worth pointing out that the Govt are doing this only because it is cost-neutral. The Treasury does not have huge extra wads of money sitting around somewhere to pay to people who reach pension age after April 2016. The worry of many women born in 1952 and 1953 is that they would have qualified for pension credit anyway.

The Committee was concerned that the single-tier pension was being set only £1 above pension credit levels. We thought that the Bill should include a provision that would always ensure that the single-tier pension would be above the level of pension credit. We were disappointed that the gap between pension credit and the single-tier pension was so narrow. It would help to allay some of the fears if there was a guarantee that the single-tier pension would always be above the basic level.

--- Later in debate ---

[Mr Kennedy]

Indeed. The hon. Lady has echoed my “Dutch auction” point. I think that many of us in all parties, including the Conservative party, have developed a sense of considerable unease—not least during the past few weeks of British politics, and perhaps during the past week in particular—about some of the siren voices that we are beginning to hear in this context. That is not healthy, it is not right, and it is misleading to people in this country, in historical terms as well as in terms of our contemporary position.

A second issue in respect of which I think the Liberal Democrats have a vital and valuable role to play—perhaps somewhat by default, but nevertheless this is where we find ourselves—is, of course, Europe. I am not going to become involved in the ins and outs of the ongoing Conservative party obsession, absolute unbelievable obsession, with Europe. However, I recall the days of the Maastricht treaty debates in the House and the so-called night watchmen of the time, including the present Secretary of State for Work and Pensions, who was one of their leading lights. They kept the place going night after night, week after week, month after month, and almost brought the Government to their knees over the issue of Europe. Here we are, more than 20 years later, and little, if anything, has changed. This is an important opportunity for the Liberal Democrats to exploit.

[David T. C. Davies]

The right hon. Gentleman has accused us of having an obsession. Does he not agree that it is far better for us to discuss something that people out there are discussing than to ignore the voice of at least one in four people—perhaps as much as half the population—who think that it is high time we pulled out of the European Union?

[Mr Kennedy]

With all due respect to the hon. Gentleman, I think that is a judgment he must make. I do not want to trawl through a history lesson going back to the days of Maastricht, but the person I blame most on all of this is Tony Blair. He is the one Prime Minister who came into office with the wind behind him, and could have lanced the boil of the European issue for an entire political generation had he seized the opportunity. Sadly, he chose not to do so, which is why not only has it festered, but what began as a rather eccentric minority position is, as the hon. Gentleman says, now commanding 25% of the recent votes cast and, even more alarmingly, I suspect much more than 25% of the current parliamentary Conservative party.

Oral Answers to Questions

David T C Davies Excerpts

Wednesday 27th February 2013 Commons Chamber

[Mr Jones]

I hear the right hon. Gentleman’s point. No doubt the Silk commission will hear it too, and will take it into account when deciding whether the matter should be taken forward.

[David T. C. Davies (Monmouth) (Con)]

The Welsh Assembly may be able to prevent parents from having their children educated in England and prevent patients from being treated by the excellent English national health service, but they will not be able to stop criminals crossing the border and breaking the law in England, or vice versa. Does the Secretary of State agree that it would be a disaster to devolve policing and justice to the Welsh Assembly?

[Mr Jones]

My hon. Friend has made his point in his customary restrained manner. No doubt the Silk commission is listening very carefully to what he has to say. He has 48 hours in which to make his submissions. I encourage him to do so.

Oral Answers to Questions

David T C Davies Excerpts

Wednesday 16th January 2013 Commons Chamber

[Stephen Crabb]

We will take no lessons from Labour on how to respond to the issue of fuel poverty. We are taking real action, not least through the green deal, through our continued support for winter fuel payments and cold weather payments, and through implementing the Prime Minister’s promise to ensure that everyone gets access to the cheapest possible tariff through their provider.

[David T. C. Davies (Monmouth) (Con)]

Cutting domestic electricity bills in half would practically end fuel poverty in this country. The Americans have done that through the exploitation of shale gas. Would it not be right for us to get behind that exciting new technology as well, to remove people from fuel poverty in Britain?

[Stephen Crabb]

My hon. Friend is quite right to suggest that shale gas has been something of a game changer for the energy market in the UK. In the autumn statement, my right hon. Friend the Chancellor of the Exchequer announced a range of measures to explore the potential for shale gas in the UK, alongside strict new regulatory safeguards.

Oral Answers to Questions

David T C Davies Excerpts

Wednesday 28th November 2012 Commons Chamber

[Mr Jones]

I do not know whether I would go that far, but clearly there is an argument to be made, and it is under consideration.

[David T. C. Davies (Monmouth) (Con)]

Does the Secretary of State agree that if the Assembly is given, and uses, powers to raise unlimited amounts of income tax, the effects on the Welsh economy could be devastating?

[Mr Jones]

I think it unlikely that the Assembly could raise unlimited amounts of tax, because it would need unlimited levels of income, which everyone would agree it does not have. Paul Silk’s work is important, and it deserves careful consideration, and that is what is happening at the moment.

Oral Answers to Questions

David T C Davies Excerpts

Wednesday 17th October 2012 Commons Chamber

[Mr Jones]

As we say in Wales, diolch am y llongyfarchiadau. I can assure the hon. Gentleman that this Government are fully committed to the respect agenda. We are working closely with the Welsh Government and I am very pleased with the relationship I am cultivating with Carwyn Jones, the First Minister.

[David T. C. Davies (Monmouth) (Con)]

Would both Ministers, whom I warmly congratulate, agree with me that parch, as we say in Monmouthshire, is something that works in both directions, and that the refusal of Welsh Assembly Ministers to appear before Select Committees shows a disgraceful lack of respect not only to this House but to those of us who were put in it by the people of Wales?

[Mr Jones]

The word “parch” means respect and I agree that parch is a process that works in two directions. I am very hopeful that a new relationship will be cultivated not only between the two Governments but between Parliament and the Assembly.

EU Council

David T C Davies Excerpts

Monday 2nd July 2012 Commons Chamber

[The Prime Minister]

The short answer to that is yes, I want it to have those powers. What Parliament has behind it is that, if people do not produce those policies, papers and people, they are in contempt of Parliament. We are seeing with the Culture, Media and Sport Committee inquiry that the whole concept of being in contempt of Parliament is being strengthened, and that is all to the good. The committee will have the powers that it needs and the expertise that it needs, but crucially it will be able to get on with the job straight away.

[David T. C. Davies (Monmouth) (Con)]

Does the Prime Minister agree that the last time we saw the current levels of interference in British domestic affairs, it led to the traumatic split with the Catholic Church? Does he agree that we would be better off having a second referendum than a second Reformation?

[The Prime Minister]

The point I would make—[Interruption.]

Ministerial Code (Culture Secretary)

David T C Davies Excerpts

Monday 30th April 2012 Commons Chamber

[The Prime Minister]

Let me be absolutely clear about what the permanent secretary has done and approved. He approved the approach taken by the Department to the quasi-judicial process relating to the BSkyB bid. This included a small number of people—including Adam Smith, the special adviser—acting as a contact point with News Corporation. It is normal—indeed, required—in such a process to have contacts, and the permanent secretary has made it clear that he was aware and content for Adam Smith to be one of those points of contact. You can keep digging into this area, but I am afraid that it is not getting anywhere.

[David T. C. Davies (Monmouth) (Con)]

Will the Prime Minister tell us whether he, like previous Prime Ministers, has ever phoned the Murdoch empire to offer his services as a godfather, or perhaps offer No. 10 for a pyjama party? If not, does he think that what we are seeing is a call for openness, or more naked opportunism than one would find on page 3?

[The Prime Minister]

My hon. Friend puts it well. The point is this: I am perfectly prepared to admit that the relationship between politicians and media proprietors got too close. What is interesting about the Labour party is that it has not revealed any of the meetings that it had while it was in government, whereas we have been completely transparent.