Oral Answers to Questions

Edward Miliband Excerpts

Wednesday 10th July 2013 Commons Chamber

[The Prime Minister]

I thank my hon. Friend for his question. I think there will be widespread support around the country for modernising this great public service, for getting new capital into the service and for ensuring that 10% of the shares go to the people who work for Royal Mail. Remarkably, it was proposed by the Labour party when it was in government, but of course, because the trade unions now oppose it, Labour has to oppose it too—fresh evidence today that it is still in the pockets of its trade union paymasters.

[Edward Miliband (Doncaster North) (Lab)]

Let me first join the Prime Minister in paying tribute to Andy Murray for his fantastic victory—following Virginia Wade’s victory in 1977. It was a fantastic achievement; he showed extraordinary determination, and the whole country is incredibly proud of him.

As the Government consider party funding reform, will the Prime Minister tell the House how much his party has received in donations from hedge funds?

[The Prime Minister]

I am not surprised—[Interruption.]

--- Later in debate ---

[The Prime Minister]

The problem is, they’re paid to shout and they’re doing nothing about it.

[Edward Miliband]

I do not think the Prime Minister wanted to answer the question, did he? So let us give him the answer: the Conservative party has received £25 million from hedge funds. Now, next question. In the Budget, the Chancellor gave hedge funds a £145 million tax cut. Can the Prime Minister tell us: was it just a coincidence?

[The Prime Minister]

The top tax rate under this Government is going to be higher than it ever was under the right hon. Gentleman’s Government, but let me tell him this important point. There is a big difference between donations to the Conservative party and donations to the Labour party, and the difference is this: donations to the Labour party buy votes at your conference, buy candidates and MPs in this House, and pay for the votes that gave him his job. They paid their money, they bought their votes, they put him in his place, and that has not changed a thing.

[Edward Miliband]

I will tell him what the difference is: 6p a week in affiliation fees from ordinary people up and down this country, against a party funded by a few millionaires at the top. And what is—[Interruption.]

[Mr Speaker]

Order. Mr Ellis, you find it so difficult to control yourself. I am sure you did not when you were practising at the Bar. Calm it, man! Get a grip of the situation!

[Edward Miliband]

What is shameful about it is that the Prime Minister does not even know about the extra tax cut he gave to hedge funds. He says he wants reform, so I have a proposal for him. I am willing, as I have said before, to have a £5,000 limit on donations from trade unions, businesses and individuals, as part of a fundamental reform in the way our parties are funded. Is he willing to do that?

[The Prime Minister]

First of all, let me deal with—[Hon. Members: “Answer!”] I will answer. Let me deal with 6p a week—[Interruption.]

--- Later in debate ---

[The Prime Minister]

Let me be frank with the right hon. Gentleman. There is a problem with a £5,000 cap, and it is this. It would imply a massive amount of taxpayer support for political parties; and frankly, Mr Speaker, I do not see why the result of a trade union scandal should be every taxpayer in the country paying for Labour.

[Edward Miliband]

So there we have the truth—[Interruption.]

[Mr Speaker]

Order.

[Edward Miliband]

So there we have the truth: the Prime Minister is ducking funding reform. He does not want it to happen. Let us test his willingness to reform in this House. Current rules allow MPs to take on paid directorships and consultancies, as long as they are declared in the Register of Members’ Financial Interests, and Members on both sides of the House abide by those rules. I say: in the next Parliament—this will affect both sides of this House—MPs should not be able to take on new paid directorships and consultancies. Does he agree?

[The Prime Minister]

I think that what matters is that everything is transparent and open. Those are the rules we agreed. The right hon. Gentleman made me an offer—[Interruption.]

[The Prime Minister]

The right hon. Gentleman made me an offer. Let me make him an offer. If he wants change, there is a Bill coming to the House of Commons next week that will cover trade unions. If he wants to legislate to move from opting out to opting in, if he wants to give union members a chance to choose whether to donate and to vote on whether they should give to Labour, we will legislate. Will he accept that offer of legislation? Yes or no?

[Edward Miliband]

I have to say that the right hon. Gentleman will have to do a lot better than that. He must answer the question on second jobs—[Interruption.] Let me tell him and all the Members opposite that between now and the general election, they will be subject to this test: do they support second jobs, new directorships and consultancies—yes or no? That is the test. Let us try the right hon. Gentleman with another test. I say—[Interruption.]

[Mr Speaker]

Order. The question must be heard, and the people whom I might have thought about calling to ask a question who are shouting from a sedentary position might just as well leave the Chamber.

[Edward Miliband]

As well as ending new directorships and consultancies, there should be a limit in the next Parliament on how much people can earn on top of their MP’s salary, as happens in other countries. The public would expect nothing less. What does the Prime Minister say?

[The Prime Minister]

What is interesting is that the right hon. Gentleman does not want to talk about the trade unions stitching up parliamentary selections. He does not want to address that, but that is what this scandal is about. Let us ask what has actually changed since yesterday. Will the unions still have the biggest vote at the conference? Yes. Will they still be able to determine the party’s policy? Yes. Will they still have the decisive vote in choosing the Labour leader? Yes. Those are the facts: they own you lock, stock and block vote.

[Edward Miliband]

This is a man owned by a few millionaires at the top of society, and everyone knows it. Here is the difference between him and me: I want action on second jobs; he does not. I want party funding reform; he does not. I am proud that we have links with ordinary working people; he is bankrolled by a few millionaires. The party of the people. The party of privilege.

[The Prime Minister]

It is not the party of the people; it is the party of Len McCluskey. That is the fact—[Interruption.]