Oral Answers to Questions

Debate between Hazel Blears and Danny Alexander

Tuesday 14th May 2013 Commons Chamber

[Danny Alexander]

The hon. Gentleman is stretching somewhat beyond the area of housing, Mr Speaker, but with your permission I would like to address his question. Some £10 billion worth of infrastructure projects prequalified for the guarantee scheme, bringing forward substantial investment in infrastructure. We are investing more in transport infrastructure in this Parliament than his Government managed during the economic good times. We are investing more in the railways than has been done since Victorian times. He should compliment the Government on our approach to infrastructure, because, whether in transport or communications and broadband, more is happening than his Government ever managed.

[Hazel Blears (Salford and Eccles) (Lab)]

Q5. What steps he is taking to implement the Public Services (Social Value) Act 2012 in his Department in relation to its procurement procedures; and what guidance his Department has given to its agencies on this matter.

Infrastructure (Financial Assistance) Bill

Debate between Hazel Blears and Danny Alexander

Monday 17th September 2012 Commons Chamber

[Danny Alexander]

The hon. Lady makes an important point. Of course, the Bill will not discriminate between projects on policy grounds. We have set out some criteria, which I shall come to, but there are many energy projects—particularly in the renewables field—that are being brought forward in this country as a result of that framework and the policies that have followed from it. Some of those projects may well fall into the category that needs the support from the guarantees that the Bill will provide. In that sense, the Bill should give us an extra tool to ensure that the renewables investment that we need can go forward in a timely fashion, which I hope she would welcome.

The House will know that the Treasury already has wide powers under common law, not limited by statute, to issue guarantees, make loans and give other financial assistance in support of infrastructure. In some cases, Secretaries of State have statutory powers to support infrastructure; in others, they would need to rely on common law powers. However, many Members will also know that there is a long-standing convention, dating back to 1932, that the Government should not rest significant and regular expenditure under common law powers on the sole authority of general supply legislation. Accordingly, in order to offer the support that we want to see, the Government need Parliament’s authority to incur expenditure in connection with agreements to provide financial assistance and to pay out on liabilities, should they be called on to do so. Today we seek authority for the Treasury, or the Secretary of State where appropriate, to incur up to £50 billion of expenditure in connection with giving financial assistance to infrastructure across the UK.

[Hazel Blears (Salford and Eccles) (Lab)]

In drawing up the agreements for such significant expenditure, what account will the Chief Secretary take of the Public Services (Social Value) Act 2012, so that we can secure a social, environmental and economic impact from such contracts—in particular, through employment and training opportunities for young people—and ensure that the money makes a difference on the ground in our communities?

[Danny Alexander]

The right hon. Lady is referring to an important piece of legislation, which, generally speaking, will have been taken into account in the process of giving consent to a project. The guarantees will be offered to projects that meet a number of criteria, one of which is that they already have the necessary consents in place to get going within 12 months. The objective is to bring forward and accelerate the development of infrastructure, and it would be inappropriate to impose additional obligations on people delivering projects. This is about enabling projects that are already slated to happen to get going quickly.