Trade (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) Bill [Lords]

Debate between Greg Hands and Richard Graham

2nd reading
Monday 29th January 2024 Commons Chamber

[Greg Hands]

I thought for a moment that the hon. Member was going to verge off into football. I was going to congratulate him on his constituency team, Liverpool, beating Fulham last week. In any case, I thank him. He was recently appointed the Prime Minister’s trade envoy to Mexico, which is a really important position. In general, Mexico presents a great opportunity. Our rolled-over trade deal with Mexico dates from a long time ago—about 2002-03.

The hon. Member will know that the CPTPP includes a comprehensive chapter on labour, with binding provisions on fundamental labour rights, minimum wage, hours of work and health and safety. All parties to the CPTPP are members of the ILO, and they are not allowed to derogate from their domestic labour laws to give them an unfair trade advantage. That is how the labour chapter in the CPTPP works. I look forward to discussions with him, and to doing everything we can to work together to boost trade with Mexico.

Before I extoll the benefits of the agreement still further, I will say that it is a pleasure to be back at the Department, and to see the further progress being made tonight towards the UK being the 12th party to the CPTPP. This is a tremendously exciting moment for both the UK and global trade policy—one that the Department and I personally have been building towards for many years. Back in about 2017, one of the earliest decisions in the Department under the then Secretary of State, my right hon. Friend the Member for North Somerset (Sir Liam Fox), was to explore accession to the trans-Pacific partnership, as the CPTPP was then known.

[Richard Graham]

May I pay tribute to my right hon. Friend for the work that he has done, both on this arrangement in general, and more specifically in promoting our mutual trade and investment agreements with nations in Asia? It is the 67th year of Malaysian independence; this is the first trade and investment agreement that we have ever had with that very encouraging far-eastern nation, with which we can develop a great and stronger relationship. Does he agree?

Oral Answers to Questions

Debate between Greg Hands and Richard Graham

Thursday 15th December 2022 Commons Chamber

[Greg Hands]

We have now signed three of these deals. Last week, we brought Utah a bit closer and we have agreed to start negotiations with California. As a practical example, an offshore wind delegation went to see Governor Cooper of North Carolina just a few months after the deal. We had the first meeting of the working group on Indiana last Monday, at which we talked about increasing the opportunities for UK firms to bid into state procurement markets in the United States. As we know, the US is a very federal system and some state procurement markets offer great potential for companies across the UK, including in my hon. Friend’s Oxfordshire constituency.

[Richard Graham (Gloucester) (Con)]

We have recently signed several agreements with Indonesia, which is good news, and the follow-up is now critical. Will my right hon. Friend confirm, first, that the next round of Joint Economic and Trade Committee talks will happen here in London in the first quarter of next year? Secondly, will the new Government-to-Government framework have Indonesia as a priority? Thirdly, and perhaps most intriguingly, can we move to negotiations on an FTA as soon as possible?

Oral Answers to Questions

Debate between Greg Hands and Richard Graham

Tuesday 12th July 2022 Commons Chamber

[Greg Hands]

I am happy to have further conversations with Treasury Ministers. As the hon. Lady knows, the Government’s position on the core issue remains unchanged, but I will ensure that the specific, additional issue she has raised is put again to Her Majesty’s Treasury.

[Richard Graham (Gloucester) (Con)]

Thank you for giving me a second chance, Mr Speaker. May I congratulate the Secretary of State and the Energy Minister on last week’s first ever ringfenced marine energy renewables auction? This is a landmark moment for the UK in generating our own domestic green energy from some of the world’s fiercest tides. When will my right hon. Friend be able to announce another ringfenced pot for marine energy?

Tidal Energy Generation: Ringfenced Funding

Debate between Greg Hands and Richard Graham

Thursday 25th November 2021 Commons Chamber

[The Minister of State, Department for Business, Energy and Industrial Strategy (Greg Hands)]

I congratulate the right hon. Member for Ross, Skye and Lochaber (Ian Blackford) on securing this important debate, and I welcome his support for the UK Government. He said that he came into the Chamber and, unusually, wanted to support the UK Government, and I am very grateful for that. I very much welcome that change of tack.

Marine energy, and tidal stream energy in particular, is of great interest to the Government. Our theme today is the merits of ringfenced funding for the deployment of tidal stream generation, and I shall say first that I agree entirely with the right hon. Gentleman that tidal stream is a homegrown industry of considerable potential. We have Europe’s and probably the world’s foremost tidal and wave energy testing centre—the European Marine Energy Centre on Orkney. We have other exciting testing centres and marine energy hubs burnishing their reputation on Anglesey, the Morlais project, and on the Isle of Wight, with the Perpetuus Tidal Energy Centre. That cropped up two weeks ago in Department for Business, Energy and Industrial Strategy questions, when my hon. Friend the Member for Isle of Wight (Bob Seely) asked about it. We have a raft of brilliant developers designing and building tidal stream devices in the UK, notably in Edinburgh, in Leith.

The right hon. Gentleman said that the UK Government funding of £20 million has come “only now”, but the picture is so positive, in large part because we have under successive Governments provided more than £175 million—not just the £20 million announced yesterday by the Prime Minister—in innovation funding to the marine energy industry in the past 18 years, of which more than £80 million has come since 2010. So when he talked about 20 to 30 years ago, this is exactly what we have been doing. Thanks to the extensive support afforded under the renewables-obligation mechanism, we were able to build in 2018 the largest tidal stream generating array in the world in the fast-moving waters of the Pentland firth.

It is fair to say, then, that the Government have a sound track record of supporting the tidal stream industry and helping to get it into the position it is in today, on the cusp of commercialisation and with good export potential. This week, however, is an occasion for looking to the future. We were all delighted to hear the Prime Minister announce yesterday at Prime Minister’s questions that the Government will establish a ringfenced budget of £20 million for tidal stream developments in pot 2 of the upcoming fourth contract-for-difference allocation round. The CfD scheme is our flagship mechanism for supporting the cost-effective delivery of renewable energy. Our decision this week will ensure that the nation’s tidal stream innovators get the opportunity they need to bring their cost of energy down, to ramp up the UK’s capture of the abundant energy flowing along our coastlines and to learn the valuable and exportable lessons that come with being the first in the world to deploy a cutting-edge technology at scale. The decision has been warmly welcomed.

[Richard Graham]

The Marine Energy Council has said clearly that it is grateful to Ministers for having listened, understood and acted, and so am I. There is now an opportunity for the sector to make a success of delivering on the funding that my right hon. Friend the Prime Minister announced and then of ramping up domestic capacity. At the same time, as the Prime Minister’s trade envoy there, I will continue discussions with Indonesia about perusing potential opportunities. Will my right hon. Friend accept an invitation to come and meet members of the sector and interested colleagues at the next meeting of the all-party parliamentary group on marine energy before the House rises?

[Greg Hands]

I gladly accept my hon. Friend’s invitation to meet. He does a brilliant job as the chair of that APPG and he does an amazing job as the Prime Minister’s trade envoy to Indonesia. He mentioned one or two of the warm words of congratulation on the announcement yesterday. RenewableUK said it was “a major step forward” and that it

“puts us in pole position to”—

lead—

“the global market in due course.”

RenewableUK also said it would

“unlock private investment and secure green jobs”,

while Neil Kermode of the European Marine Energy Centre on Orkney said:

“This support for the marine energy industry is absolutely pivotal”.

I appreciate the right hon. Member for Ross, Skye and Lochaber having brought this topic to the House. He perhaps might have left one with the impression that just he had made representations to the Prime Minister, but I checked back and found representations from my right hon. Friends the Members for Portsmouth North (Penny Mordaunt) and for Preseli Pembrokeshire (Stephen Crabb), and from my hon. Friends the Members for Meon Valley (Mrs Drummond), for Rother Valley (Alexander Stafford), for Rugby (Mark Pawsey), for Banff and Buchan (David Duguid), for Isle of Wight (Bob Seely), for West Aberdeenshire and Kincardine (Andrew Bowie), for Moray (Douglas Ross), for Ynys Môn (Virginia Crosbie), for Truro and Falmouth (Cherilyn Mackrory), for Gloucester (Richard Graham), for Sedgefield (Paul Howell), for Blyth Valley (Ian Levy), for Workington (Mark Jenkinson), for North Cornwall (Scott Mann), for St Austell and Newquay (Steve Double), for North Devon (Selaine Saxby) and for Barrow and Furness (Simon Fell).

I heard some doubt from the right hon. Member for Ross, Skye and Lochaber as to whether the £20 million per annum is a substantial-enough sum to put the tidal stream sector on its best footing. Indeed, the right hon. Gentleman suggested that £71 million is the minimum required for the job. I am afraid I cannot agree with him on that, because £71 million would mean the awarding of a contract to virtually every developer who shows interest in the auction as long as they bid at a level just a single penny under our stated maximum price. He and I worked together in the City of London in our time. He will know from his knowledge of financial markets—I know that he has since rebranded himself as the simple crofter—that there is no way to run an auction of that sort in that way.

Agricultural Exports from Australia: Tariffs

Debate between Greg Hands and Richard Graham

Thursday 27th May 2021 Commons Chamber

[Greg Hands]

We are the COP26 chairs this year, and we look forward to full Australian participation. The Australian Government are absolutely committed to combating climate change. There may even be something on that in this agreement, which we are negotiating at the moment. In terms of where Australia is overall on our standards, it is worth bearing in mind that it does have high animal welfare standards. It is ranked five out of five by the World Organisation for Animal Health on its evaluation of the performance of veterinary services, and it is worth pointing out that Australian standards are high, but I repeat that there will be no compromise and no change as a result of this free trade agreement to our own food standards.

[Richard Graham (Gloucester) (Con)]

The Australian free trade agreement is a key step forward for both global Britain and the Indo-Pacific pivot, as well as a stepping stone towards a successful trans-Pacific partnership application. There are wide opportunities for Britain with a key member of the Commonwealth family, but does my right hon. Friend agree, first, that hormone-injected beef is illegal in this country, wherever it comes from? Secondly, does he agree that a combination of staggering the introduction of tariffs and targeted DEFRA assistance will ensure that upland farmers do not suffer in the alarmist way suggested by anti-free trade Opposition parties?

[Greg Hands]

My hon. Friend is absolutely right. Hormone beef will remain illegal, because we will not be changing our import standards. I do not believe that this deal represents a fundamental threat to UK farmers, and it certainly does not compromise our high standards. As has already been pointed out, any changes for sensitive goods, such as beef and lamb, can be staged. A typical Australian free trade agreement has stages over 10, 12 or 15 years. He is right that there is an opportunity here: a springboard to CPTPP, which I know he understands well as our trade envoy to many parts of south-east Asia.

CPTPP

Debate between Greg Hands and Richard Graham

Wednesday 21st April 2021 Westminster Hall

[Greg Hands (Chelsea and Fulham) (Con)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. This has been one of the finest Westminster Hall debates that I have attended in 16 years as a Member of Parliament. It is a genuine pleasure to be able to respond to it.

I pay tribute to my hon. Friend the Member for Wycombe (Mr Baker) for securing the debate. He made an excellent speech that made my case for CPTPP as well as I could. He gave a brilliant exposition of the benefits. He rightly points out that he was an early enthusiast for joining the CPTPP. Over the years, he has been a forceful advocate for a sovereign, independent trade policy. I know he has welcomed the FTAs that we have already agreed with 67 countries, with Serbia added to the list this week, and with the EU itself, as he pointed out.

I hope to cheer him further by outlining our plans to unleash even more of Britain’s trading potential through accession to the comprehensive and progressive agreement for trans-Pacific partnership. That is quite a mouthful and comes with the world’s hardest-to-pronounce acronym, the CPTPP—in trade, the longer the term, often the more important the content, and that is true of this agreement.

We know that 2020 was a time of unprecedented challenge on every level, but CPTPP is going to be part of the future of this country. Our accession to CPTPP will be central to our endeavour to build back better and to assist our economic recovery, and our preparations are advancing at pace. As colleagues know, on 1 February we submitted our notification of intent to begin the accession process. That was the first formal step before formal negotiations start later in the year. Joining CPTPP would give British firms access to a free trade area worth £9 trillion, made up of 11 like-minded nations that share our commitment to free trade, international co-operation and the rules-based system.

Britain is the first new country to apply to join this trade partnership since it was established in 2018, with big economies such as South Korea, Thailand and Taiwan. A good point was made by my hon. Friend the Member for Gloucester (Richard Graham), who knows the region incredibly well, as the Prime Minister’s trade envoy to Malaysia and the Association of Southeast Nations region. All of those also show interest in membership.

It is a high-standards agreement between sovereign nations, which together account for 13% of global GDP. UK membership would increase that share by nearly 20%, to 16% overall. As my hon. Friend the Member for Wycombe pointed out, we are not a small nation. Equally, nothing in CPTPP will impinge on our domestic right to regulate, which was one of his key questions.

This is very much a business-focused agreement, removing tariffs on 95% of goods traded between members and reducing other barriers to trade. The UK already does more than £110 billion-worth of trade with individual CPTPP members, and the average growth rate is 8% per annum. Some of our closest trade allies—Japan, Canada, Australia, New Zealand and Singapore—are there, as are big actual or potential markets, such as Mexico, Vietnam and Malaysia, but our membership would take those trade ties to another level, opening up even more opportunities for businesses of all kinds and all sizes across the United Kingdom, spurring growth, generating jobs, delivering prosperity the length and breadth of our country and helping us to level up opportunity nationwide.

This is good news for all regions and nations of the UK, which can strengthen their already lucrative trade ties with these markets. In 2019, for example, more than £3 billion-worth of goods were exported to CPTPP nations from the east midlands alone, together with £2 billion-worth from the north-west of England and £2.4 billion-worth from Scotland. With accession, those bonds of prosperity are set to strengthen and deepen in the years ahead.

To look at specific benefits for Britain in cutting-edge sectors that are shaping the world of tomorrow, from digital trade to tech and automation—these points were made by my hon. Friends the Members for Wycombe and for Milton Keynes North (Ben Everitt)—accession would allow us to work even more closely together with other members on the development of modern digital trade rules that facilitate free and trusted cross-border trade flows and remove unnecessary barriers to business. That point was also made extremely well by my hon. Friend the Member for East Surrey (Claire Coutinho), who spoke first in the Back-Bench contributions.

The depth and breadth of the CPTPP’s e-commerce chapter provide a platform for the UK to help to shape, together with big global players in the sector, the emerging digital trading rulebook. These markets offer exciting new opportunities for British tech innovators as we seek to bind the UK, which is after all Europe’s tech capital, ever more closely with the dynamism of the Asia-Pacific region, unlocking ever greater digital trade potential between us as we build on the nearly £19 billion-worth of digitally delivered services that the UK exported to CPTPP countries in 2019. Those points were localised really well by my hon. Friend the Member for Milton Keynes North in his “Global MK” speech, which I think will have gone down very well in his local area.

Accession would also make it easier for British business people to travel between member countries via the potential for faster and cheaper business visas—a point made very well by my hon. Friend the Member for Don Valley (Nick Fletcher). To return to a key question from my hon. Friend the Member for Wycombe, access to the agreement’s dedicated chapter on small and medium-sized enterprises will ease barriers to trade for small firms by cutting tariffs and reducing red tape, giving thousands of British SMEs greater access to these vibrant markets. A really important feature of modern free trade deals is the SME chapter. A free trade agreement can seem incredibly forbidding—a typical free trade agreement has 700 or 800 pages. Someone running an SME will not have the time, let alone perhaps the inclination, to read a 700 or 800-page agreement. The idea of the SME chapter is that it allows a company to navigate the free trade agreement and take advantage of things such as Government publicity about what is available there; it eases the passage for an SME and particularly a first-time exporter.

In addition, there is the potential for swifter elimination of tariffs on key British exports, including whisky. I look over to my friend from the Democratic Unionist party, the hon. Member for Strangford (Jim Shannon). There is that potential on whisky tariffs. Of course, everybody likes to think about Scotch, but what about Irish whiskey? I have a very good relationship with the Irish Whiskey Association, and we also always promote Irish whiskey—as well as cars, a point of particular relevance to my hon. Friend the Member for Dudley North (Marco Longhi), and the automotive industry.

We could also benefit from the rules-of-origin provisions, which mean that goods produced in any country within the CPTPP will be classed as originating in the free trade area. To give just one example, cars made in the UK could use more Japanese-made parts, such as batteries, and still qualify for tariff reductions when the completed cars are exported to other CPTPP members—for example, Canada. They would count as being of qualifying CPTPP origin. That is a win-win scenario for the British economy.

On parliamentary scrutiny, which has been raised a couple of times, this Government are committed to transparency and we will ensure that parliamentarians, UK citizens and businesses have access to information on our trade negotiations. On 7 December last year, the Secretary of State for International Trade made a written statement outlining the transparency and scrutiny arrangements that will apply to our new FTAs. I am pleased to confirm that those will also apply to the CPTPP negotiations. Before the launch of formal negotiations, we will publish our objectives, alongside a response to the public consultation that has already been held, which the Opposition Front-Bench spokesman, the hon. Member for Sefton Central (Bill Esterson) referred to, and an initial economic scoping assessment, which the Chair of the International Trade Committee, the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil), referred to. He seems, however, already to have made up his mind about what will be in the economic assessment, but I shall see him later, when I appear before his Committee, and perhaps we will continue the discussion at that point.

We will continue to keep Parliament and the public informed of the progress of negotiations via regular updates, working closely with the relevant Committees in both Houses. My hon. Friend the Member for Wycombe sought an explainer. That is exactly what a lot of the documentation is intended to do—to explain the potential and actual benefits from the free trade agreement. As to the point that the hon. Member for Strangford made about a full debate, I would welcome one. I welcome this morning’s debate, and in the Department for International Trade we welcome the opportunity to explain and expand on Britain’s free trading future.

Most of the questions raised by the hon. Member for Sefton Central will, I think, be answered when we publish the negotiation objectives shortly, but to deal with one of his points—the idea that CPTPP will be a back door for a trade deal with China—I cannot make it clearer that there are no plans or intentions for a UK trade deal with China. It is very unlikely that China would meet the requirements for the CPTPP at the moment, and it is worth not forgetting that it is subject to the veto of existing CPTPP members, which, as the hon. Gentleman pointed out, do not yet include the UK. However, we might ask whether China would be welcomed by the existing members of the organisation.

We heard some rather tired, familiar arguments from the SNP Front Bench. I think that the party is always much more interested in debating Brexit than the UK’s trading future. The hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) did not like CPTPP, and I was not the least bit surprised, because the SNP has never supported any trade agreement negotiated by either the European Union or the United Kingdom. The hon. Gentleman may have a nice backdrop, but as to the content of his speech, it expounded the virtues of EU trade agreements, not a single one of which the SNP ever supported. The SNP voted against the Canada deal and it failed to support the Japan deal and the Singapore deal. Those deals were negotiated by the EU, which the hon. Gentleman now praises; so I do not think we will take any words from him. I did not for a moment expect him to support the CPTPP trade deal. The SNP is anti-trade, anti-Scotland and anti-Scotland’s best economic interests.

The hon. Member for Strangford raised an important point about ISDS. I should point out that ISDS procedures are already in place in 90 bilateral UK trade deals. We have never lost a case. We strongly believe that we have nothing to fear from ISDS, but we will shortly publish our negotiation objectives, which will include that important question.

[Richard Graham]

On the point from the SNP about what is really in Scotland’s best interests, does my right hon. Friend agree that it is curious that at this time, when those of us who are trade envoys to the south-east Asian region are doing so much to push for greater access for some of our great drink and food products, including Scotch whisky, the hon. Gentleman cannot see the advantages of the dialogue partner status with ASEAN and the TPP arrangements that the Minister is pursuing?

[Mr Philip Hollobone (in the Chair)]

Minister, you have three minutes.

UK-Japan Comprehensive Economic Partnership Agreement

Debate between Greg Hands and Richard Graham

Wednesday 25th November 2020 Commons Chamber

[The Minister for Trade Policy (Greg Hands)]

This has been an excellent debate, with speeches from 13 Government Back Benchers and six Opposition Members. It is an historic moment, as the Secretary of State outlined. The UK-Japan comprehensive economic partnership agreement is an historic milestone in embracing the opportunities of the UK’s future as an independent trading nation. It shows that economic powerhouses such as Japan—the world’s third largest economy—want ambitious deals with the UK and that it is possible to strike deals that go further and faster than the EU. It not only secures the benefits of the existing EU agreements, which many—and particularly the Opposition—said was impossible, but goes further in a number of key areas such as digital and data, financial services, the protection of geographical indicators and rules of origin. It was negotiated in record time, almost entirely virtually.

[Richard Graham (Gloucester) (Con)]

Will my right hon. Friend give way?

[Greg Hands]

I give way to hon. Friend, who was not able to get into the debate.

[Richard Graham]

I am very grateful to my right hon. Friend. Does he agree that this important free trade agreement is the first of several key UK-Asia goals over the next year, including accession to the trans-Pacific partnership, dialogue partner status with the Association of Southeast Asian Nations, several bilateral market access initiatives and partnership of the climate change summit in Glasgow? Altogether, this will bring alive the determined strategy of global Britain.

[Greg Hands]

My hon. Friend is quite right. He is our trade envoy to the ASEAN region and to a couple of countries there. I was addressing our DIT internal teams in the Asia-Pacific region just this week on the incredible opportunities that this country has there.

The deal was negotiated almost entirely virtually. It deepens the economic partnership between two like-minded island democracies. It reflects our shared values and our shared belief in the fundamental principles of free and fair trade and the importance of playing by the rules. That point was made on both sides of the House, including by the right hon. Member for Warley (John Spellar) and my right hon. Friend the Member for South West Surrey (Jeremy Hunt). This British-shaped deal strengthens ties between the world’s third largest and fifth largest economies and will help to drive economic growth in the long run. The Government are committed to levelling up the UK, delivering opportunity and unleashing the potential of every part of our United Kingdom.

We heard in this debate from two former Trade Ministers: my right hon. Friend the Member for North Somerset (Dr Fox), with his excellent and deep understanding of world trade, and my hon. Friend the Member for Wyre Forest (Mark Garnier) on the importance of the International Trade Committee in scrutinising this agreement. We heard from my hon. Friend the Member for Cleethorpes (Martin Vickers), who again showed that we have proved the naysayers wrong, and from my hon. Friend the Member for Montgomeryshire (Craig Williams) about thriving Wales-Japan trade, particularly in the area of lamb.

My right hon. Friend the Member for South West Surrey, a former Foreign Secretary, described this as a personal triumph for the Trade Secretary; I entirely agree. I can attest at first hand to how much personal effort she has put into getting the team to move forward, including in the early hours of the day. That has been incredibly helpful. My hon. Friend the Member for Tiverton and Honiton (Neil Parish), who chairs the Environment, Food and Rural Affairs Committee, welcomed the fact that the Trade and Agriculture Commission was to be put on a statutory basis. He also pointed out that Japan is the world’s largest importer of agrifood.

Oral Answers to Questions

Debate between Greg Hands and Richard Graham

Thursday 9th February 2017 Commons Chamber

[Greg Hands]

Rolls-Royce has made it clear that it will not tolerate improper business conduct of any sort. It continues to co-operate fully with the Serious Fraud Office, and we await the final outcome, on which it would not be proper to comment beforehand. UK Export Finance notes, and is reviewing, the statement of facts released as part of the deferred prosecution agreement with regards to Rolls-Royce, but the details of the statement are a matter for the SFO and it would not be appropriate to comment further at this stage.

[Richard Graham (Gloucester) (Con)]

Continuing the trend of exporting from the south-west, last week Gloucestershire-based SME Fluid Transfer International won a £6 million contract to supply aircraft-refuelling vehicles to Indonesian airports. The key ingredients were British manufacturing, a strong commitment to the market, and a very good local partnership. Will my hon. Friend join me in congratulating Fluid Transfer, and will his Department work with me to produce a short video to capture the story and inspire other small and medium-sized enterprises by showing them what can be achieved?

Draft Public Service Pensions Revaluation (Prices) Order 2016

Debate between Greg Hands and Richard Graham

Wednesday 2nd March 2016 General Committees

[Greg Hands]

Let me answer the first question. The hon. Gentleman will have a longer memory than I have, but RPI has also gone negative in the past. It is not impossible that exactly same phenomenon could happen with RPI, his preferred measure of inflation.

[Richard Graham (Gloucester) (Con)]

I think I am right in saying that RPI was negative in 2008, during the great recession. It is a constant hazard of recessions that there will be those negative indicators. Am I not also right in thinking that the main reason why CPI was chosen over RPI was precisely that the vast majority of pensioners are not still paying off their mortgages, whereas those people who are have predominantly not retired?

[Greg Hands]

My hon. Friend is right. For all kinds of good reasons the Government made the decision to move this whole sector of public pensions and benefits from RPI to CPI. I think he is right that at that time RPI had gone negative.

If I could answer the final couple of points from the hon. Member for Feltham and Heston—