Oral Answers to Questions
Debate between Geraint Davies and Kevin Hollinrake(1 year, 6 months ago)
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Kevin Hollinrake
The CMA is an independent body that decides where it should intervene. We keep these matters under very close scrutiny. Competition is the best regulator. We have a very competitive market for the supermarkets. There are 14 supermarkets, all regulated by the Groceries Code Adjudicator. It is important that competition is allowed to play its role in driving down prices, but we will keep an eye on that.
Geraint Davies (Swansea West) (Lab/Co-op)
Achieving Economic Growth
Debate between Geraint Davies and Kevin Hollinrake(2 years, 6 months ago)
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Rachel Reeves
I give way to my hon. Friend the Member for Swansea West (Geraint Davies).
Employment and Trade Union Rights (Dismissal and Re-engagement) Bill
Debate between Geraint Davies and Kevin Hollinrake(3 years, 1 month ago)
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Kevin Hollinrake
I defer to my hon. Friend, who knows far more about this issue than I ever would. The principle behind our discussion is making sure that, where the question is a business’s survival, it can get through a very difficult time. There is no doubt that last year many businesses and many sectors were in a situation where there were question marks about their very existence, so in those times they must have the opportunity to sit down with their workforce and restructure, where that is the only way forward.
Geraint Davies
The hon. Gentleman professes to speak for business. My background is in business. I mentioned earlier that the productivity rate in Germany had been twice that of here because employers are required not to fire and rehire people easily, so they train people. Does he also know that the Government-commissioned research by the Department for Business, Energy and Industrial Strategy shows that, in terms of productivity, the return to training in Britain is about 24% compared with only 6% in Germany? In other words, they have done much more training but our returns are much higher. Does he not agree that this sort of Bill, which puts pressure on employers to train and tool up their workers instead of just firing them when times are tough, is very important for the economy? Will he not join hands with us and take this forward to Committee?
Kevin Hollinrake
I think that there are two separate things entirely. Who would not agree with skilling up our workforce? Of course we need to skill up our workforce and good employers will do that to enhance productivity, particularly if we move to a higher-wage, higher-skilled economy. It is absolutely right that we should do that. However, the key question on whether the Bill should go forward to Committee is: is the Bill in any shape or form amendable so that it can do what the hon. Gentleman wants? [Interruption.] I accept that Opposition Members may feel that it is, but there are cogent arguments from Government Members that it is not and that there are better ways to do this.
EU-Japan Economic Partnership Agreement
Debate between Geraint Davies and Kevin Hollinrake(6 years, 5 months ago)
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Geraint Davies (Swansea West) (Lab/Co-op)
It is a pleasure to follow the hon. Member for Yeovil (Mr Fysh), who made a number of interesting points about the uncertainties we face. In particular, we have Brexit day in March and then a transition period, and our status within this very welcome EU-Japan deal is very uncertain.
The first key point I want to make is that we should relish the fact, as the right hon. Member for Chelsea and Fulham (Greg Hands) essentially did, that we have been part of the EU and have had the strength of the EU to enable us to negotiate a good deal. The real fear is that, after Brexit, we will be a stand-alone country facing big opportunities but also big challenges—whether with Japan, China or Trump’s United States. That is something I very much regret.
It is good to see that we do not have an investor court system in the Japan deal. That underlines the point that such a system is simply unnecessary for trading between two mature economies in democracies with established judiciaries, because there is already protection for investors. That is the case for Canada, and also for trade with the United States, in which investors are protected. The problem with investor court systems is that they put the investor first, above the environment or the public interest. There is an endless list of examples, but—[Interruption.] The Under-Secretary of State is chuntering from the Front Bench. By way of example, let us take George Osborne’s sugar tax. When such a tax was introduced in Mexico, such a system was used to sue Mexico for the profits lost by protecting people from diabetes, so these things do happen.
Kevin Hollinrake
The hon. Gentleman is citing the Cargill case, in which Mexico was actually fined by the World Trade Organisation for inappropriately applying tariffs that were contrary to a free trade agreement. In that case, it was ruled against not just under the investor-state dispute settlement process, but in the WTO itself.
Geraint Davies
The WTO did get involved, but the essential point—[Interruption.] No, let us get this clear. The essential point of these arbitration courts is that investors invest, and if Governments change the rules and doing so changes their future profits, investors can sue for compensation, as was the case with the sugar tax. That would be the case if there was a plastics tax, for example, or if there was a diesel tax, and so on. That is why people are very worried, and the Government must not trade off the environment, the public interest and wider considerations of public law. Thankfully, there has been concern about this in Europe, which is why such an unnecessary system has not been applied in the Japan deal.
On Japan, 40% of its inward investment into Europe is to Britain. Why? Is it because the Japanese love British people? We do speak English, which is their second language, but it is basically because we are a platform, through the customs union and the single market, into the biggest market in the world. These are the facts. If we are not in the single market and the customs union, which we will not be after the transition period—if we go ahead with the barmy negotiation that is being suggested—that foreign direct investment will go to mainland Europe, and we may just be left on our own.
This is the situation we face. In particular, as has been said, President Trump basically has an America first policy. He does not recognise anything except a zero-sum game. We have had a conversation about imports and exports.
The Economy
Debate between Geraint Davies and Kevin Hollinrake(9 years ago)
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Geraint Davies (Swansea West) (Lab/Co-op)
It is always a hilarious pleasure to follow the hon. Member for Monmouth (David T. C. Davies). I am very sorry that the Economic Secretary to the Treasury, the hon. Member for West Worcestershire (Harriett Baldwin), who is so brightly coloured in her UKIP blazer, has left the Chamber after giving her black and white comedy speech. A part of that speech was about how Labour has caused the problems and misery of the current day, but that is completely false. In fact, in the 10 years to 2008 under Labour, the economy grew by 40%, which is why we could double the size of the health service and the education service and lift millions of people out of poverty.
In 2008, we saw the financial crisis caused by the bankers and the sub-prime debt crisis. The then Labour Government under Gordon Brown along with Barack Obama provided a fiscal stimulus that got us back to growth by 2010. The key strategic issue in this debate is the balance between growth and cuts to get down the deficit. Labour errs on the side of growth, and George Osborne, when he arrived in 2010, decided to revert to cuts—I am talking about half a million job cuts. People stopped spending and we have had flatlining growth until relatively recently. What that has meant is that, while we have had more jobs, the overall production per job has gone down.
Kevin Hollinrake (Thirsk and Malton) (Con)
Does the hon. Gentleman not recognise that, in 2008, the UK was in the deepest recession that it had been in since the second world war, and that we are now the fastest growing economy in the G7? Will he acknowledge those facts today?
Geraint Davies
The fact that I do recognise is that, when we left office in 2010, debt as a percentage of GDP was 55%, and now it is 80%. The Labour party borrowed less in 13 years than the Conservatives have in five years. There has been a complete failure to invest in strategic growth, productivity, and wealth creation. Instead, debt has been used as a cover to attack the welfare state and public services, which are part of the public-private partnership on which Britain relies.