Oral Answers to Questions

Ed Miliband Excerpts

Wednesday 11th February 2015 Commons Chamber

[The Prime Minister]

I am grateful to my hon. Friend. I was not a voter in 1983, but it is true to say that this Government are cutting unemployment and that every Labour Government always puts up unemployment. In my hon. Friend’s constituency, the claimant count has fallen by 55% since the last election. This also speaks to a bigger picture, which is that this Government have created 1,000 jobs for every day that we have been in office. We all remember the prediction from the leader of the Labour party that our plans would cost 1 million jobs. With unemployment tumbling, perhaps today is the day he should apologise.

[Edward Miliband (Doncaster North) (Lab)]

An hour ago, we learned that linked to the HSBC tax avoidance scandal are seven Tory donors, including a former treasurer of the Tory party, who between them have given the party nearly £5 million. How can the Prime Minister explain the revolving door between Tory party HQ and the Swiss branch of HSBC?

[The Prime Minister]

I saw that list just before coming to Prime Minister’s questions. One of the people named is the Labour donor, Lord Paul, who funded Gordon Brown’s election campaign. I am very clear: people should pay their taxes in our country, and no Government have been tougher than this one in chasing down tax evasion and tax avoidance.

[Edward Miliband]

Let us talk about the difference between the Prime Minister and me. None of those people has given a penny on my watch, and he is up to his neck in this. Let us take Stanley Fink, who gave £3 million to the Conservative party. The Prime Minister actually appointed him as treasurer of the party and gave him a peerage for good measure. Will he now explain what steps he is going to take about the tax avoidance activities of Lord Fink?

[The Prime Minister]

I will tell the right hon. Gentleman about the difference between him and me. When people donate to the Conservative party, they do not pick the candidates, they do not choose the policies and they do not elect the leader. When the trade unions fund the Labour party, they pay for the candidates, they pay for the policies, and the only reason that the right hon. Gentleman is sitting there today is that a bunch of trade union leaders decided that he was more left wing than his brother.

[Edward Miliband]

The Prime Minister cannot get away from it: he is a dodgy Prime Minister surrounded by dodgy donors. He did not just take the money—[Interruption.]

[Mr Speaker]

Order. It has always to be said: the questions will be heard and the answers will be heard, because this is a democratic Chamber. I do not mind how long it takes, they will be heard.

[Edward Miliband]

He did not just take the money; he appointed the man who was head of HSBC as a Minister. It was in the public domain in September 2010 that HSBC was enabling tax avoidance on an industrial scale. Are we seriously expected to believe that when he made Stephen Green a Minister four months later, he had no idea about these allegations?

[The Prime Minister]

I am glad the right hon. Gentleman has brought up the issue of Stephen Green, who was a trade Minister in this Government. This is the same Stephen Green whom Gordon Brown appointed as the head of his business advisory council. This is the same Stephen Green whom Labour welcomed as a trade Minister into the Government. It is the same Stephen Green whom the shadow Business Secretary, who is looking a bit coy today, invited on a trade mission as late as 2013. We know what happens: every week the right hon. Gentleman gets more desperate. He cannot talk about the economy and he cannot talk about unemployment, and so he comes here with fiction after fiction. Let me deal, while I have a moment, with the fiction we had last week. He came here and, if you remember, he talked about something called intermediary tax relief. It turns out—[Interruption.] We have as long as it takes.

[The Prime Minister]

Thank you, Mr Speaker. Last week, the Labour leader asked me six times about the tax treatment of hedge funds. Now it turns out that the treatment he is complaining about was introduced in the autumn of 1997 by a Labour Government. It further turns out that it was extended in 2007. Who was in power in 2007? It was Labour. Who was the City Minister in 2007? I think we’ll find it was Ed somebody.

[Edward Miliband]

I know the Prime Minister does not care about tax avoidance, but on this day of all days he is going to be held accountable for answering the question. He is pleading ignorance as to what was happening with Stephen Green, but today we discover that the Minister in charge issued a press release in November 2011 which referred to the investigation into the HSBC Geneva account holders. Does the Prime Minister expect us to believe that in Stephen Green’s three years as a Minister he never had a conversation with him about what was happening at HSBC?

[The Prime Minister]

Why did Labour welcome Stephen Green as a trade Minister? Why were they still booking meetings with him in 2013? My responsibility is the tax laws of this country, and no one has been tougher. Let me remind the right hon. Gentleman about what we found: hedge funds cutting their taxes by flipping currencies—allowed under Labour, banned under the Tories; foreigners not paying stamp duty—allowed under Labour, banned under the Tories; and banks not paying tax on all their profits—allowed under Labour, banned by the Tories. Those two in the Treasury were the friends of the tax dodger. We are the friend of the hard working tax payer.

[Edward Miliband]

The Prime Minister is bang to rights, just like his donors. And doesn’t this all sound familiar? The Prime Minister appoints someone to a senior job in government. There are public allegations but he does not ask the questions, he turns a blind eye. Isn’t this just the behaviour we saw with Andy Coulson?

[The Prime Minister]

It is desperate stuff. The Opposition cannot talk about the economy because it is growing; they cannot talk about unemployment because it is falling; and they cannot talk about their health policy because it is collapsing. What have we seen this week? They cannot even go in front of a business audience because they have offended every business in the country; they cannot go to Scotland because they are toxic; they cannot talk to women because they have a pink bus touring the country; and they have even offended Britain’s nuns. No wonder people look at Labour and say that it has not got a prayer.

[Edward Miliband]

He took the money, gave a job to the head of HSBC, and lets the tax avoiders get away with it. There is something rotten at the heart of the Conservative party and it is him.

[The Prime Minister]

For 13 years, Labour sat in the Treasury and did nothing about tax transparency, nothing about tax dodging, and nothing about tax avoidance. This Government have been tougher than any previous Government. That is why the Opposition are desperate and that is why they are losing.