Finance (No. 2) Bill

Guy Opperman Excerpts

Wednesday 9th April 2014 Commons Chamber

[Cathy Jamieson]

I am sure that, like me, my hon. Friend meets young people every day who are desperate to get into employment, and understands absolutely what additional funding would do to help that happen. Like many other Members, I organised a jobs and employment fair in my constituency recently, and it was humbling to see the number of young people standing outside the hall queuing up before it opened in the morning in the hope of obtaining an interview and the opportunity to put themselves forward to the employers who were there either for an apprenticeship or even for part-time work—anything to get them off the dole queues. If we look at what we could do through this bankers bonus tax to support those young people, I think it is clear that is well worth introducing.

Unlike the Government, we are not willing to sit back and do nothing while ordinary people are struggling with the cost of living crisis. That is why we are calling on the Chancellor to publish a report on the feasibility of reintroducing the bank payroll tax and using the proceeds generated to fund what we have called a compulsory jobs guarantee.

It is important to stress a point I made earlier: under the scheme we are proposing every young person out of work for more than 12 months would be guaranteed a job, and they would take that up or they would lose benefits. So there is both the carrot and the stick, because we think that is important.

[Guy Opperman (Hexham) (Con)]

I have been listening to the hon. Lady’s argument and so I took the trouble to check the JSA claimant levels for her constituency: the number of 18 to 24-year-old JSA claimants is down 20.7% and claims of duration of over 12 months—the long term—are down 12.1%. Surely that disproves her argument that the figures are going up:

[Cathy Jamieson]

I note that the hon. Gentleman did not quote the long-term youth unemployment rate for my constituency. He is looking at the overall long-term unemployment rates, and in my constituency, which I have lived in for most of my life, I have seen what has happened in relation to people who have been unable to secure permanent full-time employment. I have seen the young people who have been unable to get the apprenticeships they so desperately want. I also know, from work I did in the past—I did have a life before I came into the hallowed halls of this place—with young vulnerable people, the importance of trying to support them into employment. I know, too, that many young people right across the UK are in the same situation: they are desperate to get into employment; they need the help to get there; they need us to be on their side. I therefore cannot for the life of me understand why those on the Government Benches would want to vote against bringing forward a report to look at this in more detail.

[Guy Opperman]

rose—

[Cathy Jamieson]

Perhaps the hon. Gentleman can explain to me why he does not support the idea of bringing forward this report.

[Guy Opperman]

Does the hon. Lady not accept that things like traineeships, which are the greatest passport into apprenticeships and jobs, are the true best way in which to train up our young men and women so they can then obtain the jobs and apprenticeships she is so laudably seeking?

[Cathy Jamieson]

I have no difficulty with the idea of getting young people into any form of education, employment, traineeship and so on, but we have to ensure that that is available to the young people who are out of work for a lengthy period as a priority, because we know that the longer young people are away from the jobs market, the more difficult it is for them to get back in, and I do not see that the hon. Gentleman’s point is in any way incompatible with the idea of bringing forward a report to look in more detail at how this could work and how the funding would be used.

--- Later in debate ---

[Mr Gauke]

My point to the hon. Gentleman is that the Government must reduce the deficit and APD is a valuable source of revenue. One cannot look at the effects of APD in isolation; one must look at the overall effects on the economy. We have taken measures in the Bill to reduce the burden of APD, but it is worth noting that airports in Scotland and Wales, and regional airports elsewhere in the UK, have been doing well in recent months.

[Guy Opperman]

I wish to praise Newcastle airport, which has welcomed the changes to APD. It is pleased that officials are indicating that the regional air connectivity fund will extend to airports beyond the 3 million passenger mark to those with upwards of 5 million passengers in certain circumstances. Does the Minister agree that that is a further example of the Government assisting regional airports and allowing them to grow as we know they can?

[Mr Gauke]

I am grateful to my hon. Friend because he brings me to my next point. I agree with him. The Government recognise the importance of aviation connectivity for all parts of the UK—for example, domestic flights are not subject to VAT. As he says, we are extending the scope of the regional air connectivity fund to include start-up aid for new routes from regional airports, and increasing funding to £20 million a year. Clearly, exactly how that works is a matter for the Department for Transport, but I welcome the fact that the Government are consulting the regional airports to see whether those that have more than 3 million passengers per year can receive extra support. That includes Newcastle airport, which has 4.4 million passengers. One could also mention East Midlands International, Liverpool John Lennon, Belfast International, Aberdeen, London City and Leeds Bradford, all of which have more than 3 million passengers a year. We are trying to do what we can to ensure that those airports can gain support from the connectivity fund.

[Mr Gauke]

The hon. Lady is being uncharacteristically glass half empty. We have announced an expansion of the connectivity fund. We have said that we are seeking to take that beyond airports that have more than 3 million passengers per annum. As it happens, the Department for Transport is consulting on and developing guidelines for accessing support, and the results will be published in the summer. I am sure that the hon. Lady is as keen as my hon. Friend the Member for Hexham (Guy Opperman) to ensure that the best happens for Newcastle airport.

[Guy Opperman]

It is surely a relevant factor that the Budget was only a few weeks ago and the guidance on which we are consulting was published by the European Commission only at the end of February. One could hardly have done it any earlier.