Jobs and Business
Debate between Diane Abbott and Chuka Umunna(11 years, 8 months ago)
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Mr Umunna
The Secretary of State says that it is not required. We will see. I fail to understand why legislation was needed for the green investment bank but not for his small business bank, but let us see. [Interruption.] Let me tell the welfare Secretary that I would love to have a general election, because then I might be able to occupy the Business Secretary’s post more quickly than he perhaps foresees. What we hear from most small businesses is that what the Government have done to increase access to finance and resolve the issues of the banking sector for the real economy has proved to be a let down.
Let me turn to skills and training. Weakness in specific intermediate or vocational skills is a business concern and a source of competitive disadvantage for the UK compared with our neighbours. With almost 1 million young people out of work—my hon. Friend the Member for Croydon North (Mr Reed) referred to this—we must ensure that we have system that delivers people with the education and skills that our businesses need if they are to move into work. We could start by increasing the number of apprenticeships, but crucially boosting their quality too. We have heard the Secretary of State, like other Ministers, boasting about creating more than 1 million apprenticeships, but the number of 16 to 18-year-olds starting an apprenticeship in the first half of this academic year dropped by 12%. Indeed, two thirds of large companies in this country do not offer apprenticeships. We urgently need to improve on that and also protect the quality of apprenticeships, which is precisely the point made by Doug Richard and Jason Holt, whom the Secretary of State commissioned to do reports on apprenticeships.
The Queen’s Speech made a vague reference to a desire to ensure that it becomes typical for those leaving school to start a traineeship or an apprenticeship, but where was the jobs Bill we wanted that would have required large firms getting sizeable Government contracts to have active apprenticeships scheme, ensuring opportunities to work for the next generation? There was no such Bill. I still fail to understand why this Government will not proceed with that simple measure. Ministers released details of their plan for traineeships yesterday, which is a six-month programme of training and work experience to aid young people towards apprenticeships or employment. We will have to study the detail closely, but I note that they expect colleges to have the scheme up and running by August. That will be a challenge, given the very short notice.
On procurement, which should of course be used as part of an industrial strategy, the Government’s Bombardier decision earlier in this Parliament demonstrated their failure to account for the impact of procurement decisions on jobs and growth and on the strategic development of industrial capacity. We know that the story is the same with defence. The Government’s defence industrial strategy has been abandoned in favour of buying off the shelf from overseas. In making procurement decisions, we would take account of the impact on jobs when deciding to whom to award contracts. The French, the Dutch and the German Governments do that within EU law—the Business Secretary referred to it—and so would we. If this Government were serious about backing British industry, we would perhaps see them taking similar measures. Again, however, there was nothing about this in the Queen’s Speech.
Ms Diane Abbott (Hackney North and Stoke Newington) (Lab)
On the question of jobs and skills, training and apprenticeships, does my hon. Friend agree that black and minority ethnic young people in our great cities have been disproportionally hit by this economic crash, making it important that any strategy around jobs, skills and apprenticeships and even access to funds for entrepreneurship has within it structures and strategies to help those BME young people?
Mr Umunna
I completely agree with my hon. Friend. Some things I support, such as the start-up loan scheme, could be of real benefit to our different diverse communities, particularly to young people and young entrepreneurs seeking to set up businesses. The problem up to now—I appreciate that James Caan is doing fantastic work on this—is that there has not been enough awareness of it. I have offered to help him raise such awareness in our different diverse communities.
Public Disorder
Debate between Diane Abbott and Chuka Umunna(13 years, 5 months ago)
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Air Passenger Duty
Debate between Diane Abbott and Chuka Umunna(14 years ago)
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Ms Abbott
The hon. Gentleman has made his point very well indeed. Many of those people, particularly the older ones, have contributed to this country. Some of the generation who came to this country after the war helped to rebuild its public sector, and they have worked all their lives. As I have said, the sums of money involved might seem relatively minor to a Treasury official, but they represent a huge imposition on those people who love this country and who are almost invariably British citizens but who also have a great love for the country of their birth. One thing that makes this seem all the more unfair to those people is that air passenger duty is not charged on private aircraft. If this were really an environmental measure, one would expect it to be charged on private aircraft. I will come back to that point later.
It is my contention that air passenger duty is having a negative effect on British business. I have evidence that British business travellers are flying to the continent, then flying to the Caribbean from there, because it is cheaper to do so. Business travellers contribute £70 million to the British economy—money that is slowly being lost due to airport passenger duty charges. Aviation taxation is putting the UK at a competitive disadvantage in comparison with our European neighbours. This duty will incentivise the strengthening of alternative hubs to the UK both in and outside Europe. In the end, it could well reduce the number and connection of destinations served by UK airports.
Let me move on to tourism. I have been in the House quite a few years and I have lived to see Caribbean countries urged to restructure their economies and to move away from old-fashioned economies, such as those based on bananas and sugar, into financial services, which ended badly. Then they were encouraged to restructure the economy and diversify into tourism. Thus the Caribbean tourism industry now employs, directly and indirectly, more than 1.9 million people—11% of the region’s work force. In important tourist destinations such as Jamaica and Barbados, as much as 25% of the work force are engaged in tourism, while 60% of St Lucia’s gross domestic product derives from tourism. For the Barbados hotel industry, a significant number of holidaymakers are British, and there is no question that the tourism industry in the Caribbean has been damaged by the increases in this duty.
Arrivals from the UK to the Caribbean are now in decline, while those from other markets are increasing. The latest figure from the UK Office for National Statistics shows that visits to the Caribbean by UK residents in 2010 were 16% lower than for the same period in 2009. Visits to Barbados for the same period were 22% lower. For a tourist, as opposed to someone with family links to the region, the Florida Keys is now a cheaper destination. In respect of our air passenger duty arrangements, the whole system is wrong and it is having an effect on British citizens who happen to have links with the Caribbean.
Mr Chuka Umunna (Streatham) (Lab)
I congratulate my hon. Friend on securing this debate on an incredibly important issue. I represent one of the constituencies with the biggest Caribbean diaspora populations in the country. It covers Brixton, for example, and this is a huge issue in my community. I endorse all my hon. Friend’s comments, but would add one more. If this measure were primarily about increasing sustainability and reducing emissions, one would have thought that the proceeds would be used for environmental purposes. My understanding is, however—I am sure the Minister will correct me if I am wrong—that the sums raised from this duty go back into the general pot. Will the Minister also answer a specific point that was put to me? How can it be fair to charge a greater level of tax to fly to Jamaica—there are many Jamaican families in my constituency—than to fly the whole way to Hawaii? I would appreciate an answer on that.
Ms Abbott
I am grateful to my hon. Friend, who makes his point very well. He raised the question of the avowed environmental intent of the duty. I remember that when passenger duties were put forward under a Labour Government, Ministers said that they were there largely in order to help the environment and discourage unnecessary airline travel. This Government have stated that the rises in air passenger duty are partly intended to help achieve environmental goals.
Far be it for me to accuse any Government—whether it be my own or the present Government—of glossing over the reality, but the truth is that if APD were really about achieving environmental goals, it would be calculated differently. For instance, APD is calculated according to only one element of a given flight—the distance travelled, not according to whether the plane is full or half-empty. A whole range of other factors are relevant to environmental impacts, including the type and age of the aircraft, the time it spends in the air and how heavy it is, but the Government choose not to take those factors into account in calculating aviation tax rates.
As I have said, if this is really about the environment, why is no duty charged on private aircraft? The failure to establish a way of calculating the duty that would actually minimise the effect on the environment gives people the impression that, although Ministers may indeed believe in the environmental benefit, it may be no more than a pretext on the part of their officials.
If we want to persuade people to abandon planes for other forms of transport, it is surely logical for APD to bear more heavily on short-haul flights, to which there are genuine alternatives in the form of trains and boats. What, though, is the alternative for the retired nurse living in Hackney who wants to return to Jamaica every couple of years to see her friends and family? There is no such alternative, but we are imposing these big APD rates on her flight, or that of her family.
Having raised the issue under the last Government, I have taken the earliest possible opportunity to raise it again now.
Ms Abbott
My hon. Friend and I went on a number of delegations to Treasury Ministers, and found them—as Ministers always are—well-meaning, kindly and ostensibly understanding of our case. However, they were simply unable to stand up to their officials. We look to this new Treasury Minister for more stoutness of heart and firmness of purpose.
Mr Umunna
I think it important for us to send the public—our constituents—the message that this is not a party-political issue. I have obtained a very good House of Commons note on the subject, and I know that the hon. Member for Chelsea and Fulham (Greg Hands), who is sitting behind the Minister, made a number of excellent points about it in the debate on the Finance Bill in, I think, 2009.
Ms Abbott
I am grateful to my hon. Friend for making that point. I agree that this is not a party-political issue, but one on which Members on both sides of the House feel strongly. I also agree with my hon. Friend the Member for Slough (Fiona Mactaggart) that Ministers should show some fixity of purpose. The present method of calculation is indefensible in terms of both equity and environmental impact, and it could have a big impact on British business by removing the incentive for business-class travellers to make long-haul flights to the Caribbean from London rather than from the continental hub. It is bad for business, it is bad for the Caribbean’s economy—of which tourism is a vital part during an international downturn—and it is bad for British citizens with business interests or family members in the region who simply want to be able to travel at an affordable price.
I have pursued this issue for some time, but I have every hope that a new set of Treasury Ministers will view the arguments afresh, and will undertake to reconsider the way in which air passenger duty is calculated. We appreciate that the Treasury’s tax take must remain the same, and, as I said at the outset, we appreciate that there is a genuine environmental case for seeking to lessen air travel over time. However, we consider the present level of air passenger duty to be unfair, indefensible, and a burden on the Caribbean which this Government should seek to lift.