Infrastructure

Debate between Greg Clark and Sheila Gilmore

Tuesday 12th February 2013 Commons Chamber

[Sheila Gilmore (Edinburgh East) (Lab)]

Will the right hon. Gentleman concede that during much of the Labour Government’s period in office a good deal of debt was repaid? That was one of the things that was done, and in my constituency people can point to new schools and new buildings, so there is something to be seen. Is that not the case in his constituency?

[Greg Clark]

The hon. Lady seems to be unaware of the fact that under the last Labour Government the national debt almost trebled. That is the legacy that they left and with which this Government are dealing. Over 13 years, they borrowed so much they left us with a deficit that was as big as that of Greece, and bigger than that of Spain, Portugal or Italy.

We would think that there would be something to show for all that money spent. We would think our roads, railways and power stations would be at least as good as those of Spain, Portugal and Italy. That, at least, would be a consolation prize: modern, up-to-date national infrastructure available to support British business and help us to generate the billions of pounds we need to pay off the deficit and reduce our debts.

--- Later in debate ---

[Greg Clark]

There is a Government of the Welsh Assembly led by the hon. Gentleman’s party. I commend the example that we have put forward in this country. Our close working with each of the leaders of the eight cities has achieved very encouraging results to date. I dare say the hon. Gentleman can go back to Wales and commend that to his colleagues.

The way that investments can be financed has also been transformed for the better. Labour saddled future generations with PFI debts of £279 billion, of which less than £40 billion has been paid off, and which cost at least five times and often more than the original project cost of the underlying investment.

[Sheila Gilmore]

Will the Minister give way?

[Greg Clark]

I have given way to the hon. Lady.

Our programme of infrastructure guarantees has made available £40 billion to underpin important projects, of which £10 billion of investments have already been pre-qualified only months after the initiative was begun. This will unlock vital investment, such as the £1 billion extension to the Northern line in Battersea. On energy policy, our reforms are driving investment in new capacity, not only in generation, but in energy efficiency and extraction. Our energy industry is now alive again—a new start after years of neglect under Labour.

All Governments are stewards of the country that elects them. The test of their stewardship is whether they leave their country better equipped and better prepared to prosper in the future through having taken the long-term decisions on which major infrastructure investment depends. In two short years, Britain’s reputation for infrastructure has been transformed. Having plummeted down the international league table of countries rated by their infrastructure, we are now climbing it again. The rest of the world has seen this country shaking off the torpor of the past. After more than a decade of inaction, we are once more laying the foundations of the future.

Financial Services Bill

Debate between Greg Clark and Sheila Gilmore

Monday 10th December 2012 Commons Chamber

[Greg Clark]

This excellent debate has covered a number of issues that colleagues from all parts of the House feel passionately about, and correctly so because they are of huge importance to all our constituents, especially the most vulnerable in our society.

In the short time available, I wish to address some of the points that have been made directly by hon. Members. The shadow spokesman, the hon. Member for Nottingham East (Chris Leslie), asked how the powers would be exercised by the Financial Conduct Authority. The powers come directly from the FCA’s remit, and he will be aware that the Bill establishes a far-reaching consumer protection objective. The overall objective is

“securing an appropriate degree of protection for consumers.”

The Bill goes into detail to require the FCA to consider the following: the different degree of risk to be tolerated by different types of consumers; the different needs of different types of consumers for the provision of information; and the general principle that those providing financial services should be expected to provide consumers with a level of care appropriate to their needs. I think that colleagues would recognise that this is a far-reaching objective which gives quite general powers to protect consumers, and it is right that that should be so.

The hon. Gentleman mentioned basic bank accounts, on which some progress continues to be made. There is no universal legal right to a basic bank account, but the industry guidance still stands. It states that if a consumer asks to open a basic bank account and meets the qualifying criteria, the firm should offer them an account and that banks can refuse to open an account for a customer only where the customer has a history of fraud or is an undischarged bankrupt. Those provisions continue.

[Sheila Gilmore]

The previous Government had proposed creating exactly such an obligation, but the Minister’s predecessor, in a debate I had with him in Westminster Hall, refused to contemplate any such provision. Has there been any change of mind on the part of the Government?

[Greg Clark]

I did not have the privilege of participating in that debate, but I can tell the hon. Lady our policy. I also wanted to talk about the very important matter that the hon. Member for Nottingham East and several others raised about the transparency of the information that should be provided, as is the case in the United States, on the actual practice rather than just the intentions of lenders. This is a particularly important point, and what we have said in public—I mentioned this to the Chairman of the Treasury Committee earlier—is that the Government are working with the industry to get a commitment from the banks that they will publish granular data on their lending, particularly in deprived communities. We are meeting the British Bankers Association shortly on that. We have been absolutely clear that if we are not satisfied with that information we will use the forthcoming banking reform Bill to legislate to that effect. That will concentrate minds and I think everyone will be aware of the importance of that question.

It is important to address the context in which we are operating. The Financial Conduct Authority must not regard itself simply as a regulator of incumbents, although it has important responsibilities in that regard. It also has the important objective that my hon. Friend the Member for South Northamptonshire (Andrea Leadsom) mentioned, which is to promote competition. I regard the degree of competition in retail banking as unacceptable. I would like to see more new entrants and I would like them to concentrate, in particular, on reaching those parts of the market that existing incumbents find it difficult to reach. I have made it absolutely clear in the meetings I have had with the shadow Financial Conduct Authority that the competition objective is to be taken extremely seriously, and I and my colleagues in the Treasury will be looking for progress on that.

Oral Answers to Questions

Debate between Greg Clark and Sheila Gilmore

Monday 30th January 2012 Commons Chamber

[Greg Clark]

My hon. Friend is absolutely right. We have opened up the Government to receive representations directly from all members of the community, whether community groups or individuals, rather than them needing to go through a filter before arriving with the Government.

[Sheila Gilmore (Edinburgh East) (Lab)]

I would like to give the Housing Minister a third opportunity to give a straight answer on the bedroom tax. The real reason housing benefit has risen so much is the growth of the private rented sector, so why are council and housing association tenants being told to leave their homes or take a benefit cut?