Public Spending

Denis MacShane Excerpts

Thursday 17th June 2010 Commons Chamber

[Danny Alexander]

That is at least partly the case. The challenge that we now face is how to tackle the fundamental economic problems that this country faces. The most serious economic challenge that we face is the scale of the deficit. We have seen in countries elsewhere in Europe and further afield the consequences of failing to act on fiscal consolidation. If we fail to act, the problems for jobs and growth and the prospects for our economy will be a great deal worse than they are today.

[Mr Denis MacShane (Rotherham) (Lab)]

In 1979, the then Government started destroying South Yorkshire’s industry, and the right hon. Gentleman is truly an heir of that Government. Does he realise that the name of liberal democracy must hang its head in shame in Sheffield, now that Sheffield Forgemasters has no future? His right hon. Friend the Deputy Prime Minister can now send back his Independent Parliamentary Standards Authority travel allowances, because he will never be welcome in Sheffield or South Yorkshire again.

[Danny Alexander]

I would say two things to the right hon. Gentleman. If he looks at the programmes in the Department for Business, Innovation and Skills, he will see that a number of grants to industry have been approved, having been judged on the tests of value for money and affordability. Also, as the Government make progress over the next few months and years, he will see that protecting areas that are particularly dependent on the public sector and that have been disproportionately affected will be a key priority for us.