Living Standards

Debate between Geoffrey Robinson and Richard Graham

Wednesday 4th September 2013 Commons Chamber

[Mr Robinson]

I hope that the Treasury is examining how we can ensure that there is a fair spread of the benefits that will come in the recovery, and how we can sustain that recovery. I will come to that in a moment.

In the global race on living standards, the UK is doing worse than any of our competitors and has had the biggest fall in worker income of any country in the G7. Why is that? Because none of the forecasts made for the past three years has been met, since the Chancellor announced with great fanfare the plan for the rectification of the deficit and the return to growth. He has not come anywhere near fulfilling a single one of the predictions he made then for any year on investment, growth or employment, which I will come to in a moment. It is clear that the failure of the Government’s policy has caused terrible burdens to fall on those least able to bear them. They have failed in their policy, their objectives and the tasks that they set for each sector of the economy. I do not know whether it had to be that way or whether they will repeat that failure, but personally I think it was unnecessary.

We all hope—no one more fervently than the Opposition—that that is behind us now and we can look forward to a recovery that can be sustained. We do not want the Government killing off this recovery like they killed off the one that they inherited from us back in May 2010. [Interruption.] They killed it off. The economy was beginning to grow, under a stimulus. They killed off that recovery, so let us see whether they can kill off this one. No doubt they will try. To avoid that happening, the Government must change course on several fronts, and they must do it quickly, even now.

[Richard Graham (Gloucester) (Con)]

Will the hon. Gentleman give way?

[Mr Robinson]

In a moment. The Government cannot just sit back, say it will all be glorious, accept the fine new forecast in the way they accepted the previous one, and think, “That’s going to happen.”

Before we come back to the inevitable party points that each side will make, I wish to raise one serious issue before the House, which is the role of real wages in economic recovery. As has been said, and as the figures bear out, the burden has been borne heavily by those on average and below-average wages. The fall in wages is significant; it is the largest in any of the major economies and I think the largest in the UK for probably 100 years. That must be rectified because it will be a drag on our ability to recover if we remain in a low-wage, low-skill economy. I hope that point is taken up by the Treasury in all seriousness, as well as by British industry. We have got to upskill unless we want to engage in a race to the bottom of a low-wage economy, which we will never win.

[Richard Graham]

Will the hon. Gentleman give way?

[Mr Robinson]

I will give way in a moment as I said I would. There is time enough. Even China is now coming under pressure from Indonesia and Vietnam. If we try to get down to the levels of wages there, we will not do it; the recovery must be about a higher skilled, more productive economy in which rising incomes play a vital role. Rising incomes, particularly at average level, will be vital in sustaining the recovery. I hope that point is taken and will receive a serious reply.

[Richard Graham]

I am grateful to the hon. Gentleman for giving way. He has provided various revisionist explanations for what his Government did for 13 years. Is he aware that in my constituency of Gloucester, some 6,000 jobs in business were lost during the 13 years of the Labour Government? Since the last election, some 2,000 jobs have been created and 1,240 new apprentices started last year alone. He is right to flag up that some wages are low, and we would all like them to be higher, but what does he say about the prospects for those 6,000 people who lost their jobs, and for the 2,000 new jobs created since the election? Surely that is the starting point for an improved life.

The Economy

Debate between Geoffrey Robinson and Richard Graham

Wednesday 22nd June 2011 Commons Chamber

[Mr Geoffrey Robinson (Coventry North West) (Lab)]

This is a timely economic debate, and I am pleased that the Opposition have tabled this motion for a whole-day debate at this crucial time. We are one year in, and we can now begin to form a view of whether the Government’s policies are working. It is always difficult for the Opposition, particularly on issues such as employment and the impact of economic policies on the well-being of our country and our constituents, when they have to come out and be negative about what is being achieved. Inevitably, and much to the resentment of Opposition Members, that leads to a chorus of unjustified remarks from across the Chamber that we want to talk the economy down or that we do not want good news. In the name of our constituents, we are desperate for good news. We want good news on employment, for example.

[Richard Graham]

The hon. Gentleman said that his constituents were desperate for good news. May I refer him to the very useful economic indicators update provided by the Library? It shows that consumer confidence rose by 10% in May, that manufacturers’ output expectations have risen by 13%, and that the EU economic sentiment indicators for Britain are up by 2.6 points. Does he not agree that those are all positive indicators? I would welcome him sharing them with his constituents and all his colleagues on the Opposition Benches.

[Mr Robinson]

All we know at the moment is what has happened and many forward-looking forecasts are no better than those of the OBR, which was set up by the Government to provide a so-called independent forecast. Let us be clear that we welcomed and accepted that. All we can look at is what has been achieved; we will come on to the forecasts in a few moments. If we show a moment’s hesitation or doubt about them, I hope that Government Members will understand why. I followed the first 10 years of the Labour Government very closely, and I do not think that we ever had to revise any forecast three times in a matter of six months. If we do not listen to the forecasts and do not treat them as if they had already been achieved, I hope that the hon. Gentleman will understand why.

There are some things we can welcome. We can welcome the good effort in job creation in the private sector. According to the Chancellor this afternoon, that means 520,000 jobs, so let us welcome that. The trouble is, however, that the OBR says—this is the bible we have to go by—that before the end of this Parliament, 200,000 more people are going to be unemployed than it originally thought. We have 520,000 on the one hand and 200,000 more on the other. There is always a negative balancing out the positive in all these areas. If we take inflation, for example, it has gone through the roof at 4.5%. Manufacturing output has been a good effort up until the last quarter, but it is now down again. It is not surprising that an intake of jobs in the private manufacturing sector has supported that output, built on the back of the previous Government’s policies. [Interruption.] No, they do not like to hear it, but it is a fact. Why did more than two thirds of the private sector increase in employment take place before the spending round announcement? It happened on the back of the reflationary policies of the previous Labour Government.

UK Armed Forces in Afghanistan

Debate between Geoffrey Robinson and Richard Graham

Thursday 9th September 2010 Commons Chamber

[Mr Robinson]

The hon. Gentleman is now at his most persuasive and irresistible best, and I will give the matter further thought during and after my speech.

As for the other amendments, while I agree with much in amendment (c), tabled by the hon. Member for Brighton, Pavilion (Caroline Lucas), it is inadequate in that it implies a cut-and-rush approach of getting out willy-nilly as soon as we can. I do not think that is on, or that the country would want to see us scuttle away. I believe that the only approach is the one that I outlined in an early-day motion that I circulated to most Members, which I hope will find support throughout the House. It arose from the message that came from the Taliban in August, which was the subject of a front-page article in The Guardian. It stated that the Taliban were open to negotiations and discussions about civilian deaths. That is a major problem for the allied forces and is central to the counter-insurgency strategy that was mentioned earlier, but it would not necessarily lead immediately to talks about how we could reach a political settlement involving the Taliban. I do not think that any other exit strategy makes sense. Unpleasant though it is to many, and although we may not get everything we need from talks with the Taliban, the sooner we begin them, the sooner we have a chance of achieving what the hon. Member for New Forest East and I want, which is a reduction in the unnecessary and awful killings that are taking place, including of civilians in front of their own troops. They are bound to continue if we pursue the current strategy under the terms under which our forces are operating.

We cannot simply cut and run, so I do not support the amendment in the name of the hon. Member for Brighton, Pavilion, but I will do my very best to meet the request of the hon. Member for New Forest East. I certainly cannot vote for the motion, which is defective and unacceptable because it does not give a time scale. Much though we may dislike time scales, Ministers are always asked, “How long will it last?” and they cannot dodge that and leave things open-ended. Time goes very quickly. If we are not up against a deadline, in no time at all we could find that there is mission creep and that the conflict expands. Before we know what has happened, we have built the conflict up to being about the defence of the whole western way of life.

[Richard Graham (Gloucester) (Con)]

Does the hon. Gentleman agree that his logic is the same as that of my hon. Friend the Member for Penrith and The Border (Rory Stewart)? Effectively, that logic is to abstain on the basis that the proposed amendments do not accurately reflect what we hope for, which is the timed withdrawal that the coalition Government propose?