Oral Answers to Questions

Debate between George Mudie and Danny Alexander

Tuesday 11th September 2012 Commons Chamber

[Mr George Mudie (Leeds East) (Lab)]

5. What assessment he has made of the implications for his policies of the public sector net borrowing figures in the current fiscal year.

[The Chief Secretary to the Treasury (Danny Alexander)]

Public sector borrowing figures have been higher than expected, primarily because of short-term factors, including lower corporation tax receipts caused by the Elgin shutdown and the lower than expected oil price. With eight months of the year remaining, it is too early to draw conclusions about the year as a whole, but the Government remain committed to returning the public finances to a sustainable path, while allowing the automatic stabilisers to operate in response to the weakness in the global economy.

[Mr Mudie]

The Chancellor boasted in his 2010 Budget speech that the borrowing requirement this year would be £89 billion. The Office for Budget Responsibility is suggesting that the figure will be £120 billion—a 33% overshoot. Can we have an explanation of why the Chancellor got it so wrong?

[Danny Alexander]

The hon. Gentleman, as he knows, is referring to the OBR’s forecasts. Of course, a number of problems in the global economy, not least those in the eurozone, have become more serious since those forecasts were made. I would have thought that he would applaud the fact that our plan is sufficiently flexible to allow the automatic stabilisers to support our economy when there is weakness in the global economy.

Tax Avoidance (Public Servants)

Debate between George Mudie and Danny Alexander

Thursday 2nd February 2012 Commons Chamber

[Danny Alexander]

I am grateful to the hon. Gentleman for generously welcoming the steps that we have taken to deal with this issue. As I said in my statement, and in answer to several questions, I was not made aware of any tax benefit to any individual in this case. There is a great deal of information in the public domain that has been released under freedom of information, and I would urge him to study it.

[Mr George Mudie (Leeds East) (Lab)]

So, is the Chief Secretary to the Treasury actually telling the House that the information passed to him when clearing the arrangement did not include details relating to the unusual aspects of the case, and that they were withheld by the Minister for Universities and Science?

[Danny Alexander]

No, I am not saying that at all. What I am saying is that the arrangements were put in place by the Department for Business, Innovation and Skills. Terms and conditions of employment are a matter for individual Departments. My role is to sign off the salary level for appointments paying over £142,500. As I have said in answer to several questions, in this case we reduced the salary and the expenses payments. I think that that was an appropriate response to the information that I was provided with.

Oral Answers to Questions

Debate between George Mudie and Danny Alexander

Tuesday 24th January 2012 Commons Chamber

[Danny Alexander]

That was mentioned explicitly in the Financial Services Authority’s report on the failures of the Royal Bank of Scotland. Lord Turner suggested three options for changing the law, and the Joint Committee that has scrutinised the draft Financial Services Bill has recommended that the Government give consideration to the report’s recommendations. We agree with that, and we will be publishing a joint consultation document with the FSA later this spring, which will consider a range of possible measures.

[Mr George Mudie (Leeds East) (Lab)]

John Hourican of RBS is expected to get in excess of £4.3 million in his remuneration package in share options alone. When RBS was asked about this, it said that he had met his performance targets, but refused to say what those targets were. On the ground of transparency, will the Chief Secretary agree to put in the Library a copy of the performance targets of the chief executive of RBS and of Mr Hourican?

[Danny Alexander]

I will certainly look into the matter that the hon. Gentleman has raised, but it was his party that set up the contracts for many of the executives at RBS, and his party that allowed the bonuses to be paid out. It was also his party that awarded Fred Goodwin a knighthood that he should never have been given, so I do not think that we are going to take any lessons on this from him. We have certainly been looking hard at the remuneration proposals for this year, and I can assure him that bonuses will be far, far lower than they were last year.

Oral Answers to Questions

Debate between George Mudie and Danny Alexander

Tuesday 10th May 2011 Commons Chamber

[Danny Alexander]

I would urge my hon. Friend and other colleagues from Cornwall to encourage businesses and the local authorities to support bids from private sector businesses. The regional growth fund is there to support private sector-led bids that create growth and jobs and that support economic development across England, and I would urge her to work with chambers of commerce and local enterprise partnerships.

[Mr George Mudie (Leeds East) (Lab)]

In view of the indifferent growth in the regions, does the Minister regret the Government’s decision to abolish regional development agencies and to give to their authorities no money, no staff and no authority?

[Danny Alexander]

No, I do not; I think that that was the right decision. The balance of policies that we are putting forward—on enterprise zones, local enterprise partnerships and the regional growth fund—is designed to ensure that ideas that come from the regions have a much greater chance of success. Our decision was the right one, and the hon. Gentleman will have noted that inequality among the regions actually grew during Labour’s 13 years in office.