(13 years ago)
Commons ChamberI have read that pamphlet too, and what it says is good, sound common sense. We do not know exactly when treaty change will be proposed and how great that treaty change will be, but I am absolutely clear, and the coalition is clear, about the fact that there will be opportunities to advance our national interest, and it is on those opportunities that we should focus.
Does the Prime Minister agree that, at today’s European summit, we need not just the sorting out of their problems by Greece and Italy and the proper recapitalisation of Europe’s banks, but an agenda to help Europe, and indeed Britain, to grow?
What it will be absolutely necessary to do this evening is deal with the key elements of the eurozone crisis, which is acting as a drag anchor on recoveries in many other countries, including our own. That will require decisive action to deal with the Greek situation and a proper recapitalisation of the banks, which has not happened across Europe to date—and the stress tests that have been carried out have not had credibility—but, above all, it will require the construction of the firewall of the European fund to prevent contagion elsewhere. That is the most important thing. The right hon. Gentleman is right to suggest that a wider growth strategy across Europe is required. That was debated on Sunday, and all the Commission’s proposals—on completing the services directive, completing the single market, liberalising energy policy and cutting regulation—could have been written right here in London.
The point I would emphasise to the Prime Minister is that those are long-term measures, but we also need immediate action for growth, and that needs to happen not just at European meetings, but at the G20 next week.
We know that the Prime Minister’s real focus has, unfortunately, not been on sorting out the eurozone crisis; it has been on sorting out the problems on his own side. He said on Monday that his priority is to repatriate powers from Europe: which powers, and when?
One serious question, then straight on to the politics; how absolutely typical!
Let me make this point to the right hon. Gentleman: the idea that we could go into the meeting this evening about the future of Europe arguing that Britain should add an extra £100 billion to its deficit is a complete and utter joke.
Let me answer the question about our relationship with Europe very directly. The coalition agreement talks about rebalancing power between Britain and Europe. This coalition has already achieved bringing back one power: the bail-out power that the right hon. Gentleman’s Government gave away.
The Prime Minister said in this House on Monday:
“I remain firmly committed to…bringing back more powers from Brussels”—[Official Report, 24 October 2011; Vol. 534, c. 27.]
but yesterday the Deputy Prime Minister was asked about his plan and he said:
“It won’t work, it will be condemned to failure.”
So one day we have the Prime Minister saying yes to repatriation, and 24 hours later the Deputy Prime Minister says no. On this crucial question, who speaks for the Government?
Let me quote what the Deputy Prime Minister said yesterday. He said that there is a perfectly good case for
“rebalancing the responsibilities between the EU and its member states.”
What a contrast with what the leader of the Labour party said. Jon Sopel asked:
“Let me ask this single question. Yes or no answer. Has Brussels got too much power? ”
The right hon. Gentleman replied:
“I don’t think it has too much power.”
So the situation is very plain: there is a group of people on this side of the House who want some rebalancing, a group of people who want a lot of rebalancing, and a complete mug who wants no rebalancing at all.
Why does the Prime Minister not come clean about the split between himself and the Deputy Prime Minister? This is what the Deputy Prime Minister was asked:
“Is David Cameron wrong to promise at some point the idea of another treaty that might bring powers back?”
He said this:
“This Government, of which I’m a Deputy Prime Minister, is not going to launch some sort of dawn raid, some smash and grab raid on Brussels. It won’t work, it will be condemned to failure.”
So which is it: who speaks for the Government? It is no wonder the Prime Minister’s Back Benchers are saying there is no clarity in the Government’s position, and the secretary of the 1922 committee said the Government’s “position is politically unsustainable.” Is it the Prime Minister’s position to get out of the social chapter: yes or no?
It is this coalition that has worked together to get us out of the bail-out fund—to get us out of the Greek bail-out—and to deliver this year a freeze in the European budget. That is what this coalition has achieved. The split that we have is between the right hon. Gentleman and reality, and we have the greatest proof of that. I talked to the House about this on Monday, but it is so good that I have got to do so again. When he was asked if he wanted to join the euro, he said:
“It depends how long I’m prime minister for.”
That is the split: it is between the Labour party and reality.
The Prime Minister will be going to the Council in December to negotiate on behalf of Britain, and treaty change may be on the agenda. I ask him the question again. His Education Secretary said on the radio yesterday morning:
“I think we should take back powers over employment law”,
but his Deputy Prime Minister disagrees. What is the Prime Minister’s position?
I tell you what would be on the agenda if the right hon. Gentleman was going to the meeting in Brussels tonight. We would not be discussing Italy. We would not be discussing Greece. It would be Britain handing out the begging bowl asking for a bail-out. We know that he now wants to join the euro. The other thing that Labour Members want to do is leave the International Monetary Fund. They had the opportunity in this Parliament to vote for an increase in IMF funds, which was agreed at the London Council by their own Government—they rejected that. So we now have the extraordinary situation where they want to join the euro and leave the IMF. It is not France they want to be like—it is Monaco.
It is no wonder the Prime Minister had a problem on Monday, because the truth is that he led his Back Benchers on, making a promise that he knows he cannot keep and that is ruled out by the coalition agreement. We have a Prime Minister who cannot speak for his Government. On the day of the eurozone crisis, we have a Prime Minister who has spent the last week pleading with his Back Benchers, not leading for Britain in Europe.
I might have had a problem on Monday, but I think the right hon. Gentleman has got a problem on Wednesday. The truth is that if he went to that meeting tonight, his message to Berlusconi would be, “Ignore the markets, just carry on spending” and his message to the rest of Europe would be that Labour thinks that you should spend another £100 billion adding to our deficit—after they had finished laughing there would be no time for the rest of the meeting. [Interruption.]
(13 years, 4 months ago)
Commons ChamberMy hon. Friend makes an extremely powerful point in a powerful way. We have to be clear about what is happening here. There is a firestorm, if you like, that is engulfing parts of the media, parts of the police and, indeed, our political system’s ability to respond. What we must do in the coming days and weeks is think above all of the victims, such as the Dowler family, who are watching this today, and make doubly sure that we get to the bottom of what happened and prosecute those who are guilty.
Yesterday I met the family of Milly Dowler, who have shown incredible bravery and strength in speaking out about what happened to them, the hacking of their daughter’s phone, and their terrible treatment at the hands of the News of the World. I am sure the whole House will want to pay tribute to their courage and bravery. [Hon. Members: “Hear, hear.”] Does the Prime Minister now agree with me that it is an insult to the family that Rebekah Brooks, who was editor of the News of the World at the time, is still in her post at News International?
I have made it very clear that she was right to resign and that that resignation should have been accepted. There needs to be root-and-branch change at this entire organisation. It has now become increasingly clear that while everybody, to start with, wanted in some way to separate what was happening at News International and what is happening with BSkyB, that is simply not possible. What has happened at this company is disgraceful. It has got to be addressed at every level and they should stop thinking about mergers when they have to sort out the mess they have created.
I thank the Prime Minister for that answer. He is right to take the position that Rebekah Brooks should go. When such a serious cloud hangs over News Corporation, and with the abuses and the systematic pattern of deceit that we have seen, does he agree with me—he clearly does—that it would be quite wrong for them to expand their stake in the British media? Does he further agree that if the House of Commons speaks with one voice today—I hope the Prime Minister will come to the debate—Rupert Murdoch should drop his bid for BSkyB, recognise that the world has changed, and listen to this House of Commons?
I agree with what the right hon. Gentleman has said. It is good that the House of Commons is going to speak with one voice. As he knows, the Government have a job to do to act at all times within the law, and my right hon. Friend the Culture Secretary has to obey every aspect of the law—laws that were on the whole put in place by the last Government.
And yes, as the hon. Gentleman says, we should look at amending the laws. We should make sure that the “fit and proper” test is right. We should make sure that the Competition Act 1998 and the Enterprise Act 2002 are right. It is perfectly acceptable, at one and the same time, to obey the law as a Government but to send a message from the House of Commons that this business has got to stop the business of mergers and get on with the business of cleaning its stables.
I look forward to debating these issues with the Leader of the House, who will be speaking for the Government later in the debate. I know the Prime Minister is to make a statement shortly about the inquiry, but can he confirm something that we agreed last night—that we need to make sure that we get to the bottom not just of what happened at our newspapers, but of the relationships between politicians and the press? Does he agree that if we expect editors and members of the press to give evidence under oath, so should current and past politicians?
I agree with that. First, on the issue of the debate, we are debating now, which is right, and we are going to have a statement in the House of Commons, and I will stand here and answer questions from as many Members of Parliament who want to ask them. I think we should focus on the substance.
As the Leader of the Opposition said, we had an excellent meeting last night. We discussed the nature of the inquiry that needs to take place. We discussed the terms of reference. I sent those terms of reference to his office this morning. We have had some amendments. We are happy to accept those amendments. They will still be draft terms of reference, and I want to hear what the Dowler family and others have to say so that we can move ahead in a way that takes the whole country with us as we deal with this problem.
I also think that if we are going to say to the police, “You must be more transparent and cut out corruption”, and if we are going to say to the media, “You must be more transparent and cut out this malpractice”, then yes, the relationship between politicians and the media must change and we must be more transparent, too, about meetings, particularly with executives, editors, proprietors and the rest of it, and I will be setting out some proposals for precisely that in a minute or two.
I want to thank the Prime Minister for those answers; they are answers the whole country will have wanted to hear. Can I also ask him to clear up one specific issue? It has now been confirmed that his chief of staff and his director of strategy were given specific information before the general election by The Guardian. The information showed that Andy Coulson, while editing the News of the World, had hired Jonathan Rees, a man jailed for seven years for a criminal conspiracy and who had made payments to police on behalf of the News of the World. Can the Prime Minister tell us what happened to that significant information that was given to his chief of staff?
I would like to answer this, if I may, Mr Speaker, in full, and I do need to give a very full answer. First, all these questions relate to the fact that I hired a tabloid editor. I did so on the basis of assurances he gave me that he did not know about the phone hacking and was not involved in criminality. He gave those self-same assurances to the police, to a Select Committee of this House and under oath to a court of law. If it turns out he lied, it will not just be that he should not have been in government; it will be that he should be prosecuted. But I do believe that we must stick to the principle that you are innocent until proven guilty.
Now, let me deal directly with the information given to my office by figures from The Guardian in February last year. First, this information was not passed on to me, but let me be clear that this was not some secret stash of information; almost all of it was published in The Guardian in February 2010, at the same time my office was approached. It contained no allegations directly linking Andy Coulson to illegal behaviour and it did not shed any further light on the issue of phone hacking, so it was not drawn to my attention by my office.
What is more, Mr Speaker—let me just make this point—I met the editor of The Guardian the very next month and he did not raise it with me once. I met him a year later and he did not raise it then either. Indeed, if this information is so significant, why have I been asked not one question about it at a press conference or in this House? The reason is that it did not add anything to the assurances that I was given. Let me say once more that if I was lied to, if the police were lied to, or if the Select Committee was lied to, it would be a matter of deep regret and a matter for a criminal prosecution. [Interruption.]
Order. Anybody might think that orchestrated noise is taking place—[Interruption.] Order. The House will come to order and these exchanges will continue in an orderly way.
The Prime Minister has just made a very important admission. He has admitted that his chief of staff was given information before the general election that Andy Coulson had hired a man who had been jailed for seven years for a criminal conspiracy and who made payments to the police on behalf of the News of the World. This evidence casts serious doubt on Mr Coulson’s assurances that the phone hacking over which he resigned was an isolated example of illegal activity. The Prime Minister says that his chief of staff did not pass on this very serious information. Can he now tell us what action he proposes to take against his chief of staff?
I have given, I think, the fullest possible answer I could to the right hon. Gentleman. Let me just say this. He can stand there and ask questions about Andy Coulson. I can stand here and ask questions about Tom Baldwin. He can ask questions about my private office. I can ask questions about Damian McBride. But do you know what, Mr Speaker, I think the public and the victims of this appalling scandal want us to rise above this and deal with the problems that this country faces.
He just doesn’t get it, Mr Speaker. I say this to the Prime Minister. He was warned by the Deputy Prime Minister about hiring Andy Coulson. He was warned by Lord Ashdown about hiring Andy Coulson. He has now admitted in the House of Commons today that his chief of staff was given complete evidence which contradicted Andy Coulson’s previous account. The Prime Minister must now publish the fullest account of all the information that was provided and what he did and why those warnings went unheeded. Most of all, he should apologise for the catastrophic error of judgment he made in hiring Andy Coulson.
I am afraid, Mr Speaker, that the person who is not getting it is the Leader of the Opposition. What the public want us to do is address this firestorm. They want us to sort out bad practices at the media. They want us to fix the corruption in the police. They want a proper public inquiry. And they are entitled to ask, when these problems went on for so long, for so many years, what was it that happened in the last decade? When was the police investigation that did not work? Where was the public inquiry over the last 10 years? We have now got a full-on police investigation that will see proper prosecutions and, I hope, proper convictions, and we will have a public inquiry run by a judge to get to the bottom of this issue. That is the leadership I am determined to provide. [Interruption.]
(13 years, 5 months ago)
Commons ChamberMy hon. Friend speaks for the whole House in what she says about those dreadful pictures of that poor boy. There are credible reports of 1,000 dead and as many as 10,000 detained. The violence being meted out to peaceful protesters and demonstrators is completely unacceptable. Of course, we must not stand silent in the face of those outrages, and we will not. The EU has already frozen the assets of, and banned travel by, members of the regime, and we have now added President Assad to that list. However, I believe that we need to go further, and today in New York, Britain and France will table a resolution at the Security Council condemning the repression and demanding accountability and humanitarian access. If anyone votes against that resolution or tries to veto it, that should be on their conscience.
May I join the Prime Minister in paying tribute to Colour Serjeant Kevin Fortuna and Rifleman Martin Lamb from 1st Battalion The Rifles; Lieutenant Oliver Augustin, Marine Samuel Alexander MC and Lance Corporal Martin Gill from 42 Commando, Royal Marines; and Corporal Michael Pike from 4th Battalion, The Royal Regiment of Scotland. They all showed enormous bravery and courage, and our thoughts are with their families and friends. As the Prime Minister said, that number of deaths once again demonstrates the bravery of all our forces in Afghanistan and elsewhere around the world.
We read in the newspapers today that the Prime Minister has torn up the Justice Secretary’s policy on sentencing. Has he?
What we want is tough sentences for serious offenders. This Government produced a consultation paper—there was wide consultation and widespread support for many of the proposals that it made—and in the coming weeks, we will publish our legislation.
But we read in the newspapers today that the Prime Minister has torn up the Justice Secretary’s proposals because he felt that he had to step in—and frankly I can see why. There is widespread public concern about the proposal to cut by 50% sentences for those who plead guilty. The consultation ended in March. The Justice Secretary was advocating the policy two weeks ago. Has the Prime Minister torn it up, yes or no?
The right hon. Gentleman should do something more useful than just read the newspapers. One response to the consultation paper came from the shadow Justice Secretary, the man sitting next to him, who said that it is
“a perfectly sensible vision for a sentencing policy, entirely in keeping with the emphasis on punishment and reform that Labour followed in government”.
Why the sudden U-turn?
The Prime Minister knows, and the whole country knows, that he is in a total mess on his sentencing policy, just like on all of his other crime policies. I now want to ask about another area where he is in a complete mess. Why has he made such a mess of his health plans?
I am not surprised that the right hon. Gentleman wants to move on because on the first subject he was found guilty. On the issue of discounts, it was the last Government who introduced a 33% discount—a third—on sentences. So there is more than a whiff of jumping on a bandwagon.
Bandwagon No. 1 hit the buffers, so let us turn to bandwagon No. 2. Yes, we are having a review of the plans that we announced on health: we want to get them right. I have to say again that there has been widespread support for the review of our health plans, not least from the man sitting four down from the right hon. Gentleman, the shadow Health Secretary—I know I often quote him—who said that
“looking at the evidence of what works, listening hard to those who know the NHS and learning from the views they get…is not rocket science. It’s simply good government”.
What the right hon. Gentleman calls a shambles, his shadow Health Secretary calls good government. The right hon. Gentleman is not really in command of the ship.
I asked the Prime Minister why he had made such a mess of his health proposals. The first reason he made such a mess of his health proposals is the promises he made before the election. We all remember the Prime Minister touring round the country promising no more top-down reorganisations. A year before the election, he told the Royal College of Nursing:
“There will be no more of those pointless top-down reorganisations that aim for change and instead bring chaos”.
Why did he say that?
What the Royal College of Nursing said yesterday was a welcome for the speech that I made. The reason that we are able to improve the NHS is not only that we are committed to reform, but that we are also committed to more funding. The Labour party is in favour of cutting funding to the NHS. If the right hon. Gentleman wants to look at what is happening in the NHS, Wales is now only one part of the country that is controlled by Labour and there waiting lists are massively up and health spending is being cut. That is what Labour would do to the NHS.
I will tell the Prime Minister why he made promises that he then broke—because he is completely shameless and he will say anything. The second reason he has made a mess of the health service is because he did not think the policy through. Last June, he ordered the NHS to stop enforcing Labour’s 18-week waiting time target. As a result, the number of patients waiting more than 18 weeks has gone up by 69%. Why did he scrap the instruction to enforce the waiting time target?
The best that can be said about this performance is that—quite rightly—the right hon. Gentleman was not thinking about politics on his honeymoon. On waiting times, what actually matters is the time people wait and median waiting times are down. That is what has happened in the NHS, and that is something that he misled the House of Commons about a fortnight ago—
What I meant was that the right hon. Gentleman gave an interesting use of facts on waiting times, which are down in the NHS. What we are seeing today is simply empty opposition and weak leadership. That is what we get from Labour.
The whole House will note that the Prime Minister did not withdraw his remark. He is obviously rattled over the health service. It is no wonder he is rattled, because he is making a complete mess of it, and everybody up and down the country knows it. What is the most important reason he is making a mess of the health service? However much he says he loves the NHS, and however many times he says it, the truth is that he has the wrong values. He wanted to put a free market free-for-all at the centre of our health service, and any changes he makes now are not because he wants to make them, but because he has been found out. We know all we need to know about this Prime Minister from what he has done on the NHS: he breaks his promises; he does not think things through; he is reckless; and he has got the wrong values. I will hand it to him though. After one year, he has proved the oldest truth in politics: you can’t trust the Tories on the NHS.
This side of the House will not take lectures from a party that, when in government, gave £250 million to private sector companies for doing nothing. That is what happened. What we have heard today is just a series of bandwagons, and anyone who is watching this knows that it is this Government who are boldly making reforms in the public sector; who are dealing with the deficit; and who are reforming welfare, and what do we get from the Labour party? Where is the right hon. Gentleman’s plan for the NHS? There is not one. Where is his plan for reforming welfare? Nothing. Where is his plan for higher education? Nothing. All we get is empty opposition and weak leadership, and the country can see it.
(13 years, 7 months ago)
Commons ChamberI thank my hon. Friend for her question. First of all, we should be absolutely clear that the scenes in central London of property, shops, banks and livelihoods being destroyed were completely and utterly unacceptable. The police should have our full support for the way they policed the march and the action they took. I think that it is important for people to understand that UK Uncut refused to condemn this violence and Opposition Members should remove their names from the early-day motion.
I join the Prime Minister in paying tribute to Major Matthew Collins and Lance Sergeant Mark Burgan, who died in Afghanistan. They showed enormous bravery and courage, and all our thoughts are with their family and friends.
May I start by asking the Prime Minister about the ongoing situation in Libya? In particular, will he tell the House what his policy is on arming the rebels?
I thank the right hon. Gentleman for his question. Before starting, perhaps on behalf of everyone in the House, I congratulate him and Justine on the happy news of their forthcoming wedding and, along with everyone, wish them a long and happy life together.
I can report that the situation on the ground is extremely fluid. There is no doubt in anyone’s mind that the ceasefire is still being breached, and it is absolutely right that we keep up our pressure under UN Security Council resolution 1973. I can confirm to the House that the coalition took action yesterday against regime forces harassing civilian vessels trying to get into Misrata. Yesterday and overnight the RAF flew 24 sorties, and Tornado aircraft destroyed artillery and an armoured fighting vehicle near Sirte.
The right hon. Gentleman asks about arming the rebels. I have said before in this House that we must do everything to comply with both Security Council resolutions. As I told the House, the legal position is clear—the arms embargo applies to the whole territory of Libya—but at the same time UNSCR 1973 allows “all necessary measures” to protect civilians and civilian populated areas, and our view is that that would not necessarily rule out the provision of assistance to those protecting civilians in certain circumstances. As I have told the House before, we do not rule it out, but we have not taken the decision to do so.
I thank the Prime Minister for that reply and am sure that the matter will be explored further in the Foreign Secretary’s statement at 12.30 pm. I also thank him, and indeed all Members, for their kind wishes on my forthcoming wedding, which I am very much looking forward to. I might have to come to him in the next couple of months for advice, because I know that he knows how to organise memorable stag nights.
Let me turn to a different issue: tuition fees. The Prime Minister said that universities will charge £9,000 in tuition fees only in exceptional circumstances. How many of the 23 universities that have announced their plans are planning to charge £9,000?
I am sure that there will be a free exchange of advice. When I was Leader of the Opposition, I would have done anything for a honeymoon, and the right hon. Gentleman probably feels the same way. However, we wish him well.
On tuition fees, the point about the £9,000 is well made. Universities can charge £9,000 only if they go through a number of steps to prove that they really are improving access to universities. I do not have the figures available, but I am very happy to give them to him when I do.
This is an important point, because when the Prime Minister was selling his tuition fees policy he reassured people that there would be a basic threshold of £6,000, but that “in exceptional circumstances” some universities would be allowed to charge £9,000. Of the 23 universities that have announced their fees, 18—more than 80%—plan to charge £9,000. It is not the exception; it is the rule. I am afraid—not for the first time—that this policy has not been implemented competently. The next problem he faces with this policy is that it will cost the Treasury more money to fund the loans. Will he guarantee that that money will not come from university budgets or through a reduction in student numbers?
It is worth reminding the House that university tuition fees were first introduced by the Labour party. There are two important points about this threshold. First, each university will have to spend £900 per place on access requirements. Secondly, the Office for Fair Access will decide whether universities can go to that £9,000 threshold. Very tough rules have been published and placed in the House for people to see. On the additional money that will go into higher education, the right hon. Gentleman is absolutely right: because of the system we are introducing, we will be spending more overall on universities. However, the key thing is that because of the reductions in spending we are having to make elsewhere, this is the only way to guarantee that we have well-funded universities, well-stocked libraries, well-paid lecturers and good universities to take on the world.
I asked a very simple question: where will the money come from, given that the Government have miscalculated the level of tuition fees? Universities up and down the country are worried that the Prime Minister does not think that an 80% cut in the teaching budget is enough and that he will come back for more.
Policing is another area of public services that I do not think the Government are getting quite right. The police Minister was asked eight times on the radio this morning whether the number of front-line police officers would fall. May I ask the Prime Minister whether there will be fewer front-line police officers in the years ahead?
According to Home Office statistics, if all forces achieve the current best average for visibility and availability, it would increase the number of officers available by 8,000.
I do not think that people will understand what that answer was supposed to mean. The Prime Minister should listen to the chief inspector of Lancashire police:
“We cannot leave the front line untouched”.
That is because of the scale of the cuts. Two thousand police officers are being forced out under the A19 rules. Sergeant Dave Hewitt:
“'I will be walking away from the force, unfortunately not through choice… As far as I’m concerned I’m still young and I wanted to continue being a neighbourhood sergeant.”
That sounds like a front-line police officer to me. May I ask the Prime Minister the same question? Does he expect there to be fewer front-line police officers in the years ahead? Yes or no?
There is no reason for there to be fewer front-line officers. Both parties agree that the police budget has to be cut. I heard the shadow Chancellor on the Marr programme say that
“we would have made cuts to policing”.
The Labour party would have cut policing, and we have to do so, so the question is: how do we make those cuts? We say that we have to freeze police pay for two years, reform police allowances and cut their paperwork. The Labour party opposes all those things, so it would have to make deeper cuts in police numbers. That is the case.
It is very simple: we proposed 12% cuts in the policing budget; the Prime Minister is proposing 20% cuts. Her Majesty’s inspectorate of constabulary said that if we go beyond 12%, that is likely to lead to cuts in front-line officers, which is exactly what is happening up and down this country. The truth is that he used to claim that the Conservatives were the party of law and order, but now he is cutting the number of police officers up and down the country. It is the wrong choice for the police, the wrong choice for communities and the wrong choice for the country as well.
Not for the first time, the right hon. Gentleman is completely wrong. The difference between a 12% reduction and what we are proposing is the freeze in police pay and the reform of police allowances, which he refuses to support. Has anyone seen a more ridiculous spectacle than the right hon. Gentleman marching against the cuts that his Government caused? I know Martin Luther King said he had a dream—I think it is time the right hon. Gentleman woke up.
(13 years, 9 months ago)
Commons ChamberI am happy to do as my hon. Friend asks. A big change is taking place in medicine, where far more interest needs to be directed at genetic data and genetically inherited diseases, as this is how we will reduce disease and illness in the future. We are looking, for instance, at value-based pricing, whereby we try to share between companies developing new treatments and the taxpayer the cost of developing them, which could be a good way forward to make sure we get more treatments to more people more quickly.
I join the Prime Minister in paying tribute to Private Lewis Hendry from 3rd Battalion the Parachute Regiment, Private Conrad Lewis from 4th Battalion the Parachute Regiment, and Lance Corporal Kyle Marshall from 2nd Battalion the Parachute Regiment. All these men showed extraordinary bravery and dedication. Our thoughts are with them and their families and friends as they grieve for them.
We now know that inflation is rising, growth has stalled and an extra 66,000 young people are out of work. Can the Prime Minister tell us whether he thinks his strategy is working?
Of course today’s unemployment figures are a matter of great regret, particularly in terms of higher youth unemployment, but I have to say to the right hon. Gentleman that youth unemployment has been a problem in this country for well over a decade, in good years and in bad. The level of youth unemployment actually went up by 40% under the last Government—an extra 270,000 young people unemployed. What we have to do is sort out all the things that help young people get back into work. There is a welfare system that does not help you get work, an education system that does not prepare you for work and back-to-work programmes that, under the last Government, simply did not work.
The right hon. Gentleman asked me what is happening in our economy. We are no longer linked with Greece and Ireland and those countries in the danger zone. We have a situation where market interest rates have fallen. Our credit rating is secured. There are 218,000 more people in work than there were a year ago. Above all, what I would say to him is what the Governor of the Bank of England said this morning:
“There has to be a plan A… This country needs fiscal consolidation to deal with the biggest budget deficit in peacetime”.
The right hon. Gentleman says that we are doing so well compared with the rest of Europe, but we were the only major European economy in the last quarter of 2010 that had no economic growth and where growth went into reverse. Let me ask him specifically about youth unemployment. His own former chief economist said this morning that he thought that they were wrong to scrap the education maintenance allowance, wrong to scrap the future jobs fund and that they should have been building on it. I know that he likes to make an industry out of saying that the future jobs fund was the wrong thing to do, but what did he say before the election? He went to Liverpool and said that it was “a good scheme” and that he had been “inspired” by what he saw. Why does he not listen to young people and their families up and down the country and take real action to help them?
First, the economist from the Cabinet Office whom the right hon. Gentleman has just quoted also said this:
“I would not excuse the previous Government on this; they failed to wake up to the problem early enough.”
What matters is whether work programmes are effective. I now have the figures for the flexible new deal, which was the absolute centrepiece of the last Government’s approach to this matter. Let me give the House of Commons the figures, because I think that they show what has been going wrong. Of the 279,000 people who took part in the flexible new deal, how many got a long-term job? The answer is 3,800. It is not good enough. What we have been doing on welfare, education and back-to-work programmes is not good enough. All those things need to change.
What we actually discovered today is that the right hon. Gentleman’s great new Work programme, which he is trumpeting as the answer to all the nation’s problems, will have 250,000 fewer opportunities than were provided under the last Labour Government. We know that his view of social mobility is auctioning off a few City internships at the Conservative party ball, but frankly he is going to have to do better than that. The truth is that he is betraying a whole generation of young people. He is trebling tuition fees, abolishing the education maintenance allowance and abolishing the future jobs fund. Why does he not change course and help those young people who need help up and down this country?
First, let me answer the right hon. Gentleman on the Work programme, because this is important. For the last 20 years, in this House and elsewhere, people have been arguing that we should use the savings from future benefits and invest them now in helping people to get a job, and for 20 years the Treasury has said no, including the time when he and the right hon. Member for Morley and Outwood (Ed Balls) were sitting in the Treasury advising. Now, for the first time, under this coalition Government, we will be spending the future benefits in order to get people training and into work. That will include, in some cases, spending up to £14,000 to get people, particularly those on incapacity benefit, a job.
The figures the Leader of the Opposition gives are wrong. The Work programme is the biggest back-to-work scheme this country has seen since the 1930s. Instead of being cash-limited and patchy, like his schemes, it has no limit and can help as many people as possible from all of those different categories. He mentions internships. I did a little research into his: he did one for Tony Benn and one for the deputy leader of the Labour party. No wonder he is so left-wing, so politically correct and so completely ineffective.
My hon. Friend is absolutely right: we have made a big commitment to that, with £530 million going into broadband investment, and that is absolutely vital, particularly for rural parts of the country, because we do not want them to be cut off from the information superhighway. I hope my hon. Friend will advise them about the opportunities of super-fast broadband—the business creation and job creation that it can mean right across this country.
Can the Prime Minister tell us whether he is happy with his flagship policy on forestry?
The short answer to that is no. As I have said before in this House, it is a consultation that has been put forward, and we have had a range of interesting responses to it, but what is important is that we should be making sure that, whatever happens, we increase access to our forests, we increase biodiversity and we do not make the mistake that was made under the last Government, where they sold forests with no access rights at all.
Even the right hon. Gentleman must appreciate the irony: he, the guy who made the tree the symbol of the Conservative party, flogging them off up and down this country. He says that they are consulting on the policy; they are actually consulting on how to flog off the forests, not on whether to flog off the forests. Is the Prime Minister now saying that he might drop the policy completely?
I would have thought that the whole point of a consultation is that you put forward some proposals, you listen to the answer and then you make a decision. I know it is a totally alien concept, but what is so complicated about that?
Everybody knows that the right hon. Gentleman is going to have to drop this ludicrous policy. Let me give him the chance to do so. Nobody voted for the policy; 500,000 people have signed a petition against it. When he gets up at the Dispatch Box, why does he say not that he is postponing the sale, but that he is cancelling it?
I think, once again, that the right hon. Gentleman wrote the questions before he listened to the answers, and I think the bandwagon has just hit a bit of a tree.
(13 years, 10 months ago)
Commons ChamberI pay tribute to my hon. Friend and what he does to help drive the regeneration agenda in Gloucester. There are real opportunities now that the regional development agencies, which were unloved in so many parts of the country, are going and we are having stronger local enterprise partnerships. There is much more room for good local development, including in Gloucester.
I join the Prime Minister in paying tribute to Corporal Steven Dunn from 216 Parachute Signal Squadron, Warrant Officer Class 2 Charles Wood from 23 Pioneer Regiment Royal Logistic Corps and Private Joseva Vatubua from the Argyll and Sutherland Highlanders, 5th Battalion The Royal Regiment of Scotland. We pay tribute to them for their heroism, commitment and dedication, and our hearts go out to their families and friends. I also join the Prime Minister in sending condolences to the Australian people for the floods that are affecting them.
In opposition, the Prime Minister said:
“Where the taxpayer owns a large stake in a bank we are saying that no employee should be paid a bonus of over £2,000”.
Can the Prime Minister update us on the progress in implementing that promise?
What I would say is this—[Interruption.] It was the last Government who bailed out the banks and asked for nothing in return. That is what happened. The reason we have difficulties with Royal Bank of Scotland this year is the completely inadequate contract that was negotiated by the Government whom the right hon. Gentleman supported. What we all want to see is the banks paying more in tax, and we will see that; we want to see the banks doing more lending, and we will see that; and we want to see bonuses cut, and we will see that. Perhaps he would now make a constructive suggestion.
The country is getting fed up with the Prime Minister’s pathetic excuses on the banks. He made a clear promise: no bank bonus over £2,000; it is still on the Conservative website. It is a promise broken.
The Prime Minister cannot answer the question on bankers’ bonuses: let us try him on the bankers’ tax. Can he explain to the British people why he thinks it is fair and reasonable, at a time when he is raising taxes on everyone else, to be cutting taxes this year on the banks?
We are not, is the simple answer. I know that the shadow Chancellor cannot really do the numbers, so there is no point Wallace asking Gromit about that one. Let me give the right hon. Gentleman the figures. Last year, the banks paid £18 billion in tax; this year, they are going to be paying £20 billion in tax. Their taxes are going up.
The Prime Minister just needs to look at page 91 of the Office for Budget Responsibility book, published in November, to see that Labour’s payroll tax on the banks raised £3.5 billion in addition to the corporation tax that they pay. His banking levy is raising just £1.2 billion. In anyone’s language, that is a tax cut for the banks. Why does the Prime Minister not just admit it?
I have given the right hon. Gentleman the numbers showing that the taxes are going up from £18 billion to £20 billion—now let me explain the numbers in terms of his bank bonus tax and our bank levy. Obviously he cannot get the numbers from the man sitting next to him, so let me give him the numbers. The bank bonus tax raised a net £2.3 billion, and the author of that tax, the former Chancellor, the right hon. Member for Edinburgh South West (Mr Darling), who is sitting on the Back Benches, says that you cannot go on introducing this tax year after year, and very sensible that is too. The bank levy will raise £2.5 billion each year once it is fully up and running—[Interruption.] Yes, £2.5 billion; even the shadow Chancellor can tell the right hon. Gentleman that £2.5 billion is more than £2.3 billion. And with the magic of addition and a bank levy every year, which we supported and he opposed—they said “Don’t do it”, remember that?—we will raise £9 billion compared with his £2.3 billion. Even the shadow Chancellor can work out that 9 is bigger than 2.3.
That is as close as we get to an admission from the Prime Minister that he is cutting taxes on the banks this year. The OBR is very clear that Labour’s bank bonus tax raised £3.5 billion; he will be raising £1.2 billion from the bankers’ levy.
The Prime Minister cannot answer on bonuses and he cannot answer on taxes: now let us talk about transparency. On this, I think he should listen to the Business Secretary. We know that the Business Secretary is not a man to mess with; he told his surgery before Christmas that he had a nuclear weapon in his pocket and he was not afraid to use it, so we should listen to him. He said:
“If you keep people in the dark, you grow poisonous fungus.”
On this occasion, he was not talking about the Chancellor of the Exchequer—he was talking about the bankers. Why does the Prime Minister not listen to his Business Secretary and implement our proposal for the disclosure of all bonuses over £1 million? It is on the statute book and ready to go—why does he not just get on with it?
That was such a long question that I think it is the right hon. Gentleman who should be thinking about the television career, and he should get his brother to run the Labour party—that is probably a better way round. [Interruption.] Look, we want greater transparency, but let me put this to him: he had 13 years to put these rules in place—why did he never get round to it?
We know that the Prime Minister has no answer when he starts asking me the questions. Why does he not answer the question on transparency? Let me tell the Prime Minister, he is now in the absurd position of being more of a defender of the banks than even the banks themselves. Stephen Hester, the chief executive of the Royal Bank of Scotland, went to the Treasury Select Committee before Christmas and said,
“If the Walker Report”
—a report that the Labour Government commissioned, which made the recommendation—
“were to be implemented for the whole industry, I’m not arguing against it. I have no great problem with the issue of transparency and would have no difficulty.”
The Prime Minister has had eight months to hold the banks to account—[Interruption.] He has had eight months to hold them to account. When is he going to start?
I will take a lecture from a lot of people on how to regulate banks, but I will not take one from the Opposition, who let them get away with absolute murder. Who set up the bank regulation that completely failed? Who bailed out the banks and got nothing in return? Who agreed a Royal Bank of Scotland contract with nothing in it about bonuses for this year? By the way, the right hon. Gentleman was at the Treasury all the way through that. He was there when the previous Government knighted Fred Goodwin. [Hon. Members: “Ah!”] Yes—wait for it—they knighted him for services to banking and sent him away with a £70 million pay-off. That is why no one will ever trust Labour on banking or on the economy again.
What was the right hon. Gentleman saying when all that was going on? He was saying, “Deregulate the banks more.” He even put the Vulcan in charge of his policy on the banks—planet Redwood and planet Cameron. That is the truth; there we have it. Life in 2011 on planet Cameron: one rule for the banks, another for everybody else. Is it any wonder, as we now know, what his Ministers say in private? In the privacy of his surgery, his Health Minister said:
“I don’t want you to trust David Cameron…he has values that I don’t share.”
The Health Minister knows that the Prime Minister is out of touch, the House knows that he is out of touch and now, because of his failure on the banks, the whole country knows that he is out of touch.
I think the right hon. Gentleman knows that this just is not working. We have ended up with a shadow Chancellor who cannot count, and a Labour leader who does not count. When the right hon. Gentleman was in the Treasury, what did he do when the Government set up the regulatory system that failed? He did nothing. What did he do when they paid out £11 billion in bonuses to bankers? He did nothing. What did he do when they said that they had abolished boom and bust? He did nothing. He was the nothing man at the Treasury and he is the nothing man now that he is trying to run the Labour party.
(14 years, 1 month ago)
Commons ChamberI thank my hon. Friend for that question. It was good to see the alternative vote in practice, if I can put it that way, although of course, to be fair to my colleagues on the Government Benches, when it comes to the referendum the trade unions will not have quite such a large involvement.
I should like to take this opportunity to congratulate the right hon. Member for Doncaster North (Edward Miliband). It is an important job that he does, calling the Government to account and standing up for Opposition Members. I am sure that there will be many times when we can work together on issues of national interest, such as on Afghanistan, which I was just talking about. I hope that he will not mind me saying that, as well as wishing him well, I hope that he does the job for many, many years to come.
May I start by thanking the Prime Minister for his kind words just then, and for the kind words that he gave to me when I was elected leader of the Labour party? As he said, there will be issues on which we can work constructively, including on Afghanistan.
I join him in paying tribute to our troops who have died in Afghanistan. They were Sergeant Andrew Jones of the Royal Engineers and Trooper Andrew Howarth of the Queen’s Royal Lancers, who died on 18 September; Corporal Matthew Thomas from the Royal Electrical and Mechanical Engineers, who died on 25 September, Rifleman Suraj Gurung from 1st Battalion the Royal Gurkha Rifles, who died on 2 October and Sergeant Peter Rayner from 2nd Battalion the Duke of Lancaster’s Regiment, who died on 8 October. Each of them showed the highest dedication, commitment and bravery. We honour their memory and pass deep condolences to their families.
We also honour Linda Norgrove, who died doing a simple job trying to make the lives of people in Afghanistan better—a necessary part of any political settlement. She too showed immense bravery. May I say to the Prime Minister that we fully support the decision the Foreign Secretary took to authorise her rescue? We must always make it clear from all parts of this House that responsibility for her death lies solely and squarely with those who took her hostage. May I ask the Prime Minister to update the House on his phone call with President Obama about the circumstances surrounding Linda Norgrove’s death and the progress on the inquiry into those circumstances?
I am grateful for what the right hon. Gentleman says and the way that he says it, both about our troops and about the tragic case of Linda Norgrove. As he knows, I spoke to President Obama to stress the point that we think it is extremely important that this is a joint US and UK investigation. I do not think there are any further details I can give about what happened that night—the picture is still unclear—but it was right, I think, to correct the early information, which most likely was wrong, about how Linda died. This investigation is now under way. When there is new information to bring to the House, we will bring it to the House. Most important of all, though, is to keep the family informed at every stage. I will meet General Petraeus tomorrow to discuss this further. I particularly want to echo what the right hon. Gentleman says about the responsibility for this. It is an impossibly difficult decision to make about whether to launch a raid and try to free a hostage. In the end we must all be clear: the responsibility for Linda’s death lies with those cowardly, ruthless people who took her hostage in the first place.
I thank the Prime Minister for that answer and for undertaking to keep the House informed. He has our full support on the issue.
Let me turn to the issue of benefits and say to the Prime Minister that we will work with him on his reforms to disability living allowance and to sickness benefits, because they are important reforms and they need to be done. On child benefit, though, I think that those on his own Benches and the country at large do have concerns. May I ask him, first, how many families where one parent stays at home will be affected by the changes that he has proposed to child benefit?
In terms of the number of families who will be affected, higher-rate tax is paid by 15% of taxpayers, and the decision that we have taken is to say that child benefit should not be received by families where there is a higher-rate taxpayer. I accept that this is a difficult choice, but the fact is—
I have answered the question, “How many?” The answer is that 15% of taxpayers are higher-rate taxpayers. This is a difficult choice, because as we deal with the deficit we have to ask better-off people to bear their share of the burden. The fact is that today we spend £1 billion giving money through child benefit to relatively better-off homes. We think that has to change, and I have to ask the right hon. Gentleman why he thinks that that is not the case.
I may be new to this game, but I think that I ask the questions and the Prime Minister should answer them.
I am afraid that that the Prime Minister did not provide an answer to the specific question I asked. By my reckoning, there are hundreds of thousands of families where one parent stays at home, and the question they are asking is this: why should a family on £45,000 where one person stays at home lose their child benefit—£1,000, £2,000, £3,000 a year—but a family on £80,000 where both partners in the couple are working should keep their child benefit? That does not strike people as fair, and it does not strike me as fair: does it strike the Prime Minister as fair?
What I believe is fair is asking better-off people to make a contribution to reducing the deficit. Let me try putting it this way to the right hon. Gentleman—think about it like this: there are thousands of people in his constituency earning one sixth of what he earns. Through their taxes, they will be paying for his child benefit. Is that really fair?
I am afraid it is nought out of two on straight answers. We should try to change the tone of these exchanges, but the Prime Minister must provide straight answers to straight questions that I ask him. I am not defending the rich—[Interruption.]
Order. The Leader of the Opposition will be heard, and if there are colleagues chuntering away who then hope to catch the eye of the Chair, I am afraid they are deluded.
I am defending the deputy head teacher in her primary school and the police inspector, who are asking a simple question. The Prime Minister used to agree with me. Before the election he went to Bolton, in an event that I gather was called “Cameron Direct”, and he said:
“I’m not going to flannel you. I’m going to give it to you straight. I like child benefit. . . I wouldn’t change child benefit, I wouldn’t means test it, I don’t think that’s a good idea.”
I agree with the Prime Minister: why doesn’t he?
The problem that the right hon. Gentleman has to face up to is that he left us the biggest budget deficit in the G20, and he has absolutely no proposals to deal with it. He opposes our changes on housing benefit, yes? You oppose those? He opposes our changes on a benefit cap—[Interruption.]
The right hon. Gentleman opposes our changes on a benefit cap, yes? Just nod. And he opposes our changes on child benefit. He quoted something to me; let me quote him something back:
“We have to be frank with people and show our mettle. In times of plenty, giving child benefit to high earners is a luxury the country”
cannot afford. That was Alan Milburn, someone who cared—[Interruption.] Ah, he’s gone. I love this—all the Labour politicians who used to win elections have been thrown out of the window. The right hon. Gentleman has to face up to the truth. We have a big budget deficit, and we have to ask better-off people to make their contribution. We say higher earners should not get child benefit. Their child benefit is being paid for by some of the poorest people in our country, and it is about time he protected them.
I really want the Prime Minister to face up to the scale of the changes he is proposing, and I say to right hon. and hon. Members on the Government Benches that they should face up to the scale of the loss. Take a family on £33,000 after tax. If they have three kids, they will be losing £2,500 as a result of these changes. That is the equivalent of 6p on the basic rate of income tax. That is an enormous loss that the Prime Minister is inflicting on a particular group in the population. If he wants to take people with him on deficit reduction, he has to show that his changes are fair and reasonable. I come back to this point: I do not believe his changes are fair and reasonable—does he?
I do not think it is fair for the poorest constituents in the right hon. Gentleman’s constituency to contribute to his child benefit. That is what he is asking them to do. Let me remind him of something he said in July, which was that
“whoever is the Labour leader will, by the time of the spending review, have to show that they have an alternative plan”.
Where is the alternative plan? That was a speech he made to an organisation called Left Foot Forward. Could I suggest that he put both his left feet forward and tell us what the plan is?
Order. People should stop shouting. The public hate it, it is bad for politics and it should not happen.
The truth is that the Prime Minister has no defence of that policy. He cannot explain to families up and down the country why they will sustain that loss. I see the Chancellor sitting there. Let us be honest: the policy has been a shambles from day one. The rest of the Cabinet knew nothing about it, and the Local Government Secretary said he found out from the media that it would be announced. The Children’s Minister, whom I cannot see in the Chamber, went on the run because he was too scared to defend the policy. I bet the Prime Minister wishes the BBC blackout had gone ahead, given that his conference was such a shambles.
On child benefit, is it not time that the Prime Minister had the grown-up sense to admit that he has got it wrong and that he has made the wrong decision? He should tell middle-income families up and down Britain that he will think again.
The right hon. Gentleman has suddenly discovered middle-income families. We are now hearing about the squeezed middle, but who squeezed the middle? Who doubled the council tax and put up tax 122 times, and who taxed the pensions, the petrol, the marriages and the mortgages? Suddenly, having done all that to middle-income earners, Labour wants to stand up for them. That is a completely transparent political strategy to cover up the inconvenient truth that he was put where he is by the trade union movement. It is short-term tactics and political positioning: it is not red, it is Brown.