Oral Answers to Questions

Debate between Ed Balls and Peter Tapsell

Tuesday 10th September 2013 Commons Chamber

[Sir Peter Tapsell (Louth and Horncastle) (Con)]

Although the economy is improving, I am afraid that the same cannot be said of the deputy Chancellor—[Interruption.]

[Ed Balls (Morley and Outwood) (Lab/Co-op)]

Shadow Chancellor.

[Sir Peter Tapsell]

Yes—you! [Laughter.]

Given that Sir John Vickers has just warned us that British banks are still seriously under-capitalised, does my right hon. Friend now accept that ring fencing, whether electrified or not, cannot be relied on to provide adequate protection for depositors and businesses in the event of another banking crisis? Will he therefore give further thought to the proposal, supported by Mr Paul Volcker and Lord Lawson, for the total separation of the commercial and investment banking sectors?

Jobs and Growth

Debate between Ed Balls and Peter Tapsell

Wednesday 12th October 2011 Commons Chamber

[Ed Balls]

Well, unemployment has fallen as a percentage—[Interruption.] As I said, that whipping operation knows no bounds. I was hoping that the hon. Gentleman was going to repeat what the hon. Member for West Suffolk (Matthew Hancock) said earlier this year. He said that

“manufacturing is expanding under this Government”.—[Official Report, 23 March 2011; Vol. 525, c. 1024.]

The trouble is that manufacturing output has fallen in every one of the past three—[Interruption.] I am going to agree with the hon. Member for Stratford-on-Avon (Nadhim Zahawi), who wrote on his blog that

“deficit reduction alone isn’t enough. If we are to smooth the waters of this choppy recovery we need to ensure that we also support sustainable growth in the private sector.”

Where is that growth? Will the Chancellor repeat his claim that—

[Sir Peter Tapsell (Louth and Horncastle) (Con)]

Will the right hon. Gentleman give way?

[Ed Balls]

Undoubtedly.

--- Later in debate ---

[Sir Peter Tapsell]

As a lifelong Keynesian, I fully understand that growth can be achieved only by increased demand. Every Finance Minister in the western world is grappling with that problem. What are the right hon. Gentleman’s proposals for increasing demand without causing damaging side-effects for the rest of the economy?

[Ed Balls]

At last, a perceptive intervention from the right hon. Gentleman. I will come to that very issue later in my speech after making a few more points. I will deal with ensuring that getting demand moving is done in a safe, sustainable and careful way.