Infrastructure (Financial Assistance) Bill

Debate between Denis MacShane and Danny Alexander

Monday 17th September 2012 Commons Chamber

[The Chief Secretary to the Treasury (Danny Alexander)]

I beg to move, That the Bill be now read a Second time.

We are introducing the Bill because a number of key infrastructure projects in this country that are close to starting construction are being held back as a result of the difficulties they face in accessing finance. These difficulties are not because of poor commercial or economic viability of projects, but because of temporary capacity constraints in debt markets and significantly longer lead times to secure lending commitments. Accordingly, we are expediting this Bill so that we can provide the necessary financial assistance as quickly as possible and provide confidence to the markets that the Government will be in a position to do so. Once Parliament approves the Bill we will be able to complete formal negotiations with project providers over financial assistance, which we would like to do as quickly as possible to prevent costly and unnecessary delay. I therefore thank Opposition Members and the Opposition’s Front-Bench representatives for agreeing to expedite the Bill.

The measures that the Bill will make possible—financial assistance to infrastructure and housing projects worth tens of billions of pounds—have received widespread support, particularly from the business community. They are supported, for example, by the Confederation of British Industry, which says that our approach

“marks a big step towards unlocking the…investment needed to renew our national infrastructure,”

and that our proposals

“will provide a much-needed tonic for the construction sector, getting diggers on site and people into work. It will make a difference to households across the country.”

[Mr Denis MacShane (Rotherham) (Lab)]

I support the main thrust of the Bill, but on Sunday last week I drove my son to start his studies at Edinburgh university and the A1 between Newcastle and Edinburgh, which is a single-carriageway road, was clogged up with tractors and hay balers. It is extraordinary that, in contemporary Britain, the access road to one of our main capital cities belongs to the back of beyond in Bangladesh. Can we do anything to dual-carriageway that road? It is close to the Chief Secretary’s constituency as well as mine.

[Danny Alexander]

I think that my constituents in the highlands would say that describing it as close to my constituency might be a misuse of the word “close”, but none the less I recognise the right hon. Gentleman’s point. I gently observe that his party had 13 years in office to deal with that project, although I mean no disrespect to him in saying so.

Oral Answers to Questions

Debate between Denis MacShane and Danny Alexander

Tuesday 6th September 2011 Commons Chamber

[Danny Alexander]

I agree very much with that. I believe that it is a quotation from the former Chancellor of the Exchequer, the right hon. Member for Edinburgh South West (Mr Darling). We are united at the top and we have a credible economic policy, while the Opposition—if I may use the former Chancellor’s phrase—are “not at the races”.

[Mr Denis MacShane (Rotherham) (Lab)]

Does the Chief Secretary—whom I fondly recall from the days when he was known as “Danny the euro”—agree that a big problem that we all face is the fact that the purchasing power of the pound internationally has sunk to an all-time low? Do we not have a real problem with the Osborne pound, which is now importing inflation, and do we not need to separate the two? We cannot get rid of the pound, because they will not let us, so do we not have to get rid of the Chancellor?

[Danny Alexander]

The right hon. Gentleman—I shall not tell the House what he was known as—should be aware that the reduction in the value of the pound took place under the previous Government, so he might direct his comments to them. He might also recognise, if he were being balanced, that that is having a beneficial effect on British exporters who are trying to sell into the eurozone, where the difficulties are, of course, affecting us as well.

Public Spending

Debate between Denis MacShane and Danny Alexander

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.