Huw Irranca-Davies
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Cost of Living: Energy and Housing
Huw Irranca-Davies Excerpts(10 years, 5 months ago)
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The Secretary of State for Energy and Climate Change (Mr Edward Davey)
Yesterday’s Gracious Speech marks another step in this coalition’s work to secure Britain’s economic recovery. With the infrastructure Bill, the small business Bill and the Childcare Payments Bill, this Queen’s Speech continues the central purpose of this coalition—not just to rebuild the shattered economy we inherited, but to promote a new economy with sustainable growth and employment for all, so the British people can enjoy a stronger economy and a fairer society.
The coalition’s long-term economic plan is all about raising living standards for everyone in our country, but to do that we have to tackle the country’s economic problems head-on. We cannot duck the difficult decisions even when they come at a political price. To do the right thing for our country in the appalling circumstances in which we found ourselves in 2010 was always going to take courage and I am genuinely proud to serve a Deputy Prime Minister and a Prime Minister who have both had that courage even though both have experienced difficulties in our respective parties as a result. Let us look at where their courage has taken our country.
Our economy is growing again; indeed, no other major economy grew faster in the last year. Our deficit is falling steadily, responsibly—not as fast as some people argued for, but at a pace that has kept interest rates low and enabled employment to rise. There is nothing of which my colleagues and I are more proud than this coalition’s record on jobs: unemployment down in the last year alone by over 300,000 and employment up at record levels, increasing by over 720,000 last year alone.
Huw Irranca-Davies (Ogmore) (Lab)
I thank the right hon. Gentleman for giving way so early in what sounded like his peroration. Will he comment on the UK’s decline in stature in terms of the renewables industry, which has come out in recent reports, and also on the speculation that numerous applications for onshore wind energy have been declined by the Secretary of State for Communities and Local Government? Can the Energy Secretary tell us how many have been declined against official advice?
Mr Davey
Renewable electricity has more than doubled under this Government. The situation we inherited from the last Government was that we were at the bottom of the European league—no, I should correct the record: we were above Malta and Luxembourg—but now our position has improved significantly. I would have thought the hon. Gentleman would have welcomed that. We have put in place an excellent regime for investment in renewables and all low-carbons. The Ernst and Young report he refers to shows us to be the best place in the world to invest in offshore wind and tidal energy, and my right hon. Friend the Secretary of State for Communities and Local Government Secretary and I are very proud of the fact that we have increased onshore wind so substantially and that there is such a healthy pipeline of future investment in it.
Caroline Flint (Don Valley) (Lab)
The Government’s record is simple: since they came to power, working people have seen their pay fall by £1,600 a year on average, and by the end of this Parliament, people will be worse off than at the beginning. That is a record that no other Government can match, but it is not one to be proud of. The averages and statistics provide only a glimpse of what is happening to families caught in the cost of living crisis. It is a crisis that runs deep into people’s lives and deep into our country, because something fundamental has happened. The link between the wealth of our nation and everyday family finances has been broken, so the single biggest challenge facing our country is to restore that link so that growing prosperity is shared by all and not just a few at the top. On that challenge, this Queen’s Speech falls badly short. Today, I want to set out why it fails, and how Labour would take immediate action to deal with the pressures facing families and make the big long-term changes that we need so that hard-working people are better off.
Let us start with energy. There were suggestions yesterday that communities would be given the right to purchase a stake in local renewable energy projects, which was one of the community energy ideas in “The Power Book” which we published back in 2012. If that is what the Government are announcing, we welcome it and we look forward to more information on how and when it will apply.
We also heard that, subject to their consultation, the Government intend to bring forward legislation to give oil and gas developers underground access rights without requiring landowner permission. We have always been clear that provided it can be done in a safe and environmentally sustainable way, we will support shale gas exploration, but we have set out six conditions which we believe need to be met, four of which the Government have agreed to. That leaves two—first, an assessment of groundwater methane levels, and secondly, ensuring that all this monitoring is done for a full 12 months before any drilling can proceed, so as to ensure that we have robust baseline measurements to which we can always refer back. That is one of the lessons we need to take on board from the American experience, which did not go as well there.
As the Secretary of State mentioned, the changes to underground access rights announced in the Queen’s Speech will put shale gas on the same footing as other industries such as coal, water and sewage, so we will not oppose them, but we will continue to push for the environmental framework to be strengthened, and for assurances that the responsibility for clean-up costs and liability for any untoward consequences rests fairly and squarely with the industry, not with taxpayers or homeowners.
However, as the Secretary of State knows, companies have only exploratory licences, so full shale gas production is still some years away. Even if it does happen, unless we see significant shale production not just in Britain but right across of Europe, most experts believe it will have little effect on gas prices in the UK. The idea that it will in any way help with the cost of living that people are facing in relation to energy prices is therefore pretty wide of the mark.
One would not know it from the Secretary of State’s complacent speech, but in real terms energy bills have risen three times faster under this Government than under the previous one. The average family’s energy bill is now £300 a year higher than it was back in 2010, and businesses say energy is the second biggest cost they face. The consequences are being felt around the country. Figures out this week show that more than 1.5 million households are in debt to their supplier—saddled with more than £1 billion-worth of debt. If the Government had published their annual fuel poverty statistics last month, as I believe they were meant to, I imagine we would see the fuel poverty gap—the gap between people’s bills and what they can afford—increasing too. Perhaps the Secretary of State could enlighten us today on whether that is the case and explain why these statistics were not published.
On Tuesday we learned that in the past year alone the profit margins of the big six energy companies from supplying gas and electricity have doubled, so what is there in the Queen’s Speech to help bill payers? What is there to stop companies exploiting their customers? Nothing. The Secretary of State spoke about the Government’s dodgy deal with the energy companies, which he claimed had cut the average bill by £50, but let me remind the House of a few things that he forgot to mention. He forgot to say that because the energy companies increased bills by, on average, £110 at the same time as cutting green levies, the average family’s bill is still more than £60 higher than last year. He forgot to say that 3.7 million households on fixed price deals will not even receive the full saving, even though the Minister of State, Department of Energy and Climate Change, the right hon. Member for Bexhill and Battle (Gregory Barker) said it was “not acceptable” for the energy companies to fail to pass it on.
The Secretary of State forgot to say how the Government cobbled this deal together—a £5 cut in network charges, to be repaid in full next year, with interest; £12 from the warm home discount moved from people’s bills to their taxes, and somewhere between £30 and £40 of cuts to vulnerable and hard-to-treat households, which should have got help with energy efficiency and insulation through the energy company obligation. That amounts to 440,000 fewer households getting help to make their homes warmer. These are the people who have been made to pay, not the energy companies.
Then we heard the Secretary of State wax lyrical about the impending market investigation by the Competition and Markets Authority. I have been clear that we support the market investigation. I have also said that the review should cover the role of the regulator too, because one cannot properly investigate a market without looking at how it is regulated. The very fact that Ofgem has deemed it necessary to refer this industry to the competition authorities is an admission that the market is not working for consumers. Yet the review will take 18 months to complete and has not even been given the go-ahead yet. The test for the Government was what they would do to help households and businesses in the meantime, and on that test this Queen’s Speech fails.
I can tell the House exactly what we would do if this were Labour’s Queen’s Speech. We would protect households from any more unfair price hikes by freezing energy bills for 20 months. That would stop suppliers increasing their prices, but of course they would still be able to cut them. We would also begin the work of reforming the market. Consumers will not thank us if we use the CMA investigation as an excuse to avoid dealing with problems we can fix now. For instance, one of the biggest barriers to proper competition in this market, and one of the main reasons people find it difficult to trust the industry, is that companies can generate power and sell it from one arm of the business to another, at prices that are never disclosed, before finally selling it on to the public.
We could fix that problem quite straightforwardly by introducing a ring fence between the generation and retail arms of energy companies. We are not talking about companies being forced to divest bits of their business, although of course that may be something for the CMA to consider; we are simply talking about the way in which these companies operate becoming transparent. In fact, some suppliers already claim to operate in such a way. SSE has said, following the publication of Labour’s Green Paper on energy market reform, that it will legally separate its generation and retail businesses. So why wait? The CMA might report back with additional measures that need to be implemented, but if there are things we can do now to make this market work for the public and restore trust, then we should do them.
Huw Irranca-Davies
I commend my right hon. Friend for laying out the measures that would have been in an alternative Labour Queen’s Speech. Will she confirm that another measure would have dealt with the one in five or one in six people who are in rural off-grid households and who currently have no protection? One of the greatest measures we could have brought forward would be to allow those people to have their winter fuel payment paid early, so that they have the flexibility to buy at times of the year when the prices for off-grid oil, and so on, are much cheaper.
Caroline Flint
I absolutely agree with my hon. Friend. I commend the fantastic work he is doing with rural communities the length and breadth of Britain and thank him for the support he has given my team in addressing some of the issues facing households who are off the grid. As he says, for those off the grid this is an equally disappointing Queen’s Speech. There is nothing on bringing forward winter fuel payments, which would allow people to buy their heating oil when it is cheaper, or on bringing those who are off-grid under the energy regulator so that they can enjoy some of the protections that everybody else would enjoy. Labour would have put both those measures in a Queen’s Speech.
Sir John Randall
I agree with my right hon. Friend. I am a little cautious, for understandable governmental reasons, about ensuring the independence of the commissioner. No one likes to give up power entirely. The commissioner’s role will be important, but we have to recognise that to a great extent, the commissioner will have to have independence from Departments. That is another aspect.
My right hon. Friend the Member for Meriden talked about the supply chain and ensuring that businesses have due regard. I am sure that that theme will be raised on Tuesday when we are discussing home affairs and certainly when we debate the Bill itself. It is one of the most controversial issues, but it is essential. How far that is put into legislation will have to be discussed. I know that the Government, rightly, do not want to burden businesses with unnecessary regulation, but I think that most businesses, as my right hon. Friend the Member for Meriden said, will want such provision for their own reputational advantage, so that they are seen not merely to pay lip service to having no slavery in their supply chain but to ensure that they do not. Nobody can be sure at any particular stage and some of the evidence we heard over recent months has put me off purchasing all sorts of items. For example, many of the prawns we get in this country, from Thailand and elsewhere, are produced in conditions, which, if we knew more about them, would make us very wary of buying them.
Huw Irranca-Davies
The right hon. Gentleman is making a very good point. Does he agree that buyers in the UK can play a significant role unilaterally in this regard? There are half a dozen significant buyers in the garment and food sectors and should they choose to lead the field by saying that they will ensure that they are paying people what they need right down the supply chain, whatever part of the world they live in, so that they can live in dignity and bring up their families, that could go a long way.
Sir John Randall
To a great extent, they are doing that. The problem is that when their suppliers in another country tell them that everything is okay and not to worry, they accept that. It is sometimes very difficult to get right down to the problem and that is why many of us think that one director or the chief executive should have a legal responsibility, not to penalise that person but to help the company. In other words, so long as they are doing their very best they will not be hauled in front of everybody and publicly shamed if something is found to have gone wrong. The idea is to help businesses.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
Thank you, Mr Deputy Speaker, for calling me to speak in this important debate following Her Majesty’s most Gracious Speech yesterday—a speech which truly shows that we are on the side of the vast majority of hard-working, decent, law-abiding, responsible people. It is a speech which, despite what the Opposition say, continues to demonstrate that this Government are dedicated to securing our country’s long-term economic future.
The range and depth of Bills announced shows that there is no let-up in our commitment to put right the failures of the previous Government, and builds on what this Government have already achieved. For the Opposition to have any credibility, they need to accept the failures of the past and just say sorry. Until they do, no one should ever trust them again with the finances of this country. Their weak attempt to frame this parliamentary Session as lacking substance is misguided and shows the desperation of their own argument. As John Longworth, director general of the British Chambers of Commerce, said:
“Businesses across Britain will be relieved to see that the government has opted for a streamlined legislative programme, meaning ministers can devote more time to delivering the best possible environment for economic growth and enterprise. Businesses hold governments accountable not for how many bills they pass, but for what they actually deliver.”
I agree. There is much to be welcomed, and it is not about quantity but quality. It is also not just about what we say here and what is in the speech but what we do and achieve in the next 11 months.
We have already achieved a lot. When this Government came to power, the future of our country was by no means certain. We were in the throes of Labour’s great recession, borrowing billions of pounds to bridge the gap between income and expenditure; confidence was at an all-time low; and, to top it all, we were informed by the former Chief Secretary, the right hon. Member for Birmingham, Hodge Hill (Mr Byrne), through his now infamous note, that “there’s no money left”. It was against this backdrop—this toxic economic inheritance—that the new Government had to set about rebuilding and rebalancing our economy. We abandoned the plans of the previous Government for more borrowing, more spending and more tax in exchange for a real long-term economic plan that is delivering growth, employment, and a brighter future than we might have dared to expect. Yesterday’s Queen’s Speech builds on that.
Huw Irranca-Davies
In his very outspoken welcoming of the Queen’s Speech, will the hon. Gentleman reflect on a situation that I am sure affects his constituents as well as mine, whereby as many as one in six agency workers now work under the so-called Swedish derogation, which means that some of them are being paid £135 less for doing the same job as the people standing next to them? Is that how we should be rebuilding the economy?
Stephen Metcalfe
The hon. Gentleman makes a valuable point. There are still challenges to be tackled. I am not saying that the recovery is perfect. There is a long way to go and we need to do a lot more, but the fact that we are on the right road has to be welcomed.
There are challenges—there is no doubt about that—and one of them is the overall cost of living, but we are serious about tackling that by taking the decisions to resolve these issues, decisions that have been blocked at every turn by Labour. I accept that there is a cost of living challenge—we have to; it is a reality—but we were always going to have this problem until our long-term economic plan was in place and seen to be working. Whichever way you cut it, as a nation we were spending more than we were earning and borrowing the difference, and that is what had to come to a stop. We cannot keep spending more than we earn. Anyone who has ever got into trouble with their credit card or overdraft knows that at some point they have to stop spending and face reality. That is what we did when we got into government—we faced reality and we stopped spending so much. Anyone who has ever used a credit card or an overdraft to fund their lifestyle knows that when they rein in expenditure and start paying back their bills they do not have as much money to spend. That is the situation we found ourselves in as a nation. Despite the toxic economic inheritance we received, we have managed the reductions in spending in a cautious and measured way. It has not been without pain, but if we had not taken the decisions we have, things could have been so much worse than they have been and are.
How do we tackle the continuing cost of living challenge? I believe there are three ways to do that. First, we can put off the inevitable, keep borrowing and spending, and hope something will turn up. Secondly, we can take an interventionist approach and try to con people that we can freeze energy prices, cap rents, and renationalise the railways. Thirdly, we can do what this Government have done: take the hard decisions, pull our head out of the sand, and tackle the problem head on. The best way to deal with the challenge is to create growth and jobs and to rebalance the economy so that wages rise at least in line with costs, and, in the meantime, to mitigate the impact of the readjustment as best we can. For example, we have raised the threshold at which people begin to pay tax so that low-paid workers who are least able to weather the economic storm can keep more of their money. That measure alone has saved 26 million people £705 each per year.
We have demonstrated to the markets that we are serious about paying down the debts and closing the deficit. This has potentially saved mortgage holders over £1,000 for every percentage point by which mortgages could have risen. We have frozen council tax so that after five years people are paying the same as they were in 2010, saving them hundreds of pounds. We should compare that with the doubling of council tax that took place under the previous Government. We have frozen the fuel duty escalator, making fuel now 20p per litre cheaper than it would have been under the previous Government’s plans. We have created jobs so that people have the security of an income. We have created 1.5 million new jobs and now have more people in work than ever before in our history. I could go on .
However, all of the above does not mean I am oblivious to the challenges people continue to face each and every day. That is why I warmly welcome all the Bills announced in the Gracious Speech, including the Childcare Payments Bill, which will help people to meet the cost of child care; the infrastructure Bill, which will enable us to source cheaper local energy; and the pensions Bill, which will show that we trust people to do the right thing with the money they have saved.
Above all, I welcome the small business, enterprise and employment Bill. As many in this House will know, in my previous life I worked in my own family printing business. I can therefore confirm that running your own small business is tough—always has been and probably always will be. If we can do anything to make it easier, then we must, and this Bill goes a long way towards achieving that. People might ask what small businesses have to do directly with the cost of living. I sometimes think we forget how important our small and medium-sized business sector is. It is the powerhouse of the British economy and—dare I say it?—the backbone of our society. Not until the SME sector is truly thriving will we be able fully to tackle the cost of living challenge. There are 4.9 million small businesses in the UK. If even only half of them employed one extra person, we could wipe out unemployment in a stroke.
That is why this Bill is so important, and I am not the only one who thinks so—the Federation of Small Business and the British Chambers of Commerce have also welcomed it. John Allan, the FSB’s national chairman, said:
“The Small Business Bill, announced today in the Queen’s Speech, reflects the growing recognition of the role small businesses have to play in driving forward the economy and the need to do all we can to support them in that effort.”
John Longworth, director general of the BCC, said:
“Simplifying life for small or growing businesses should be an objective shared across all political parties.”
That is what I believe we are delivering. A number of significant measures in the Bill will go a long way towards helping small businesses and thus helping them to support their staff in tackling the rising cost of living. Unlike Governments or public bodies, SMEs can pay their staff only what the company earns, and until they can earn more they cannot pay more.
The first measure that will have a significant impact on the success of our businesses is the renewed focus on late payment. As I said in my debate on this topic 18 months ago, small businesses should not be acting as the bank for large business. A recent survey of FSB members found that 51% of large company invoices were paid late. That is outrageous. It is blocking tens of billions of pounds that could be pumped back into the economy for the benefit of the majority and not the minority. Make no mistake: this is not asking companies to settle their invoices before the due date; it is just asking them to settle them at the agreed terms, whether 30, 60 or 90 days—that is a private arrangement. Paying on time could significantly increase the profits of small businesses. Businesses often function on overdrafts because of the money they are owed. If they did not have to fund an overdraft, they would undoubtedly have more money for wages and investment. Late payment of invoices costs money, affects cash flow, increases overdrafts, causes anxiety, and demotivates businesses so that they do not invest. Anything we can do to improve the situation by toughening up the prompt payment code is very welcome, but if it does not work, please expect me to come back here and call for yet further action. We cannot take our foot off the accelerator on this one.
Mr Robert Walter (North Dorset) (Con)
I am pleased to follow the hon. Member for Ynys Môn (Albert Owen). I agreed with some of the things he said, particularly that this Government will be judged on their record—I am very happy for the Government to be judged on their record at the general election. He mentioned shopping in England, but he should not be too embarrassed at taking his bags with him. I take my bags to the supermarket, and the only reason people look oddly at me is because I tend to fill rather robust Waitrose bags in a Tesco supermarket.
This was a good Queen’s Speech. It has been criticised for containing only 11 Bills, but earlier this morning we approved the carry-over of six Bills from the previous Session, so that makes 17. As somebody who is in favour of less government and less legislation, I think it is a good Queen’s Speech—the culmination of a balanced programme in the face of the economic and financial crisis that this Government inherited. As I said, I am happy for this Government to be judged on their record, and they will be judged on the growth, employment and inflation figures.
One of the topics we are considering today is energy—whether from solar panels, wind turbines or shale gas. How we get it, what we pay for it and what we are willing to give up to secure its future continue to be issues. Nationally, I have campaigned hard over the past 15 years with many colleagues in this House to change national policy in respect of large-scale, badly sited onshore wind farm developments, in response to a veritable barrage of applications faced by rural constituencies, from developers desperate to profit from generous subsidies. Twelve years ago in my constituency we saw off an application for some 32 wind turbines in the Winterbourne valley and, more recently—we fought this over several years—another wind farm at Silton, which at the end of 2012 the inspector ruled was a totally inappropriate development in a country area, on grounds of intrusion on the landscape and historic buildings.
The campaigning has started to pay real dividends, with a welcome commitment by the Prime Minister that the next Conservative Government would end any additional public subsidy for onshore wind beyond what is already planned and ensure that large-scale onshore wind farms would be determined by the locally led planning system, as opposed to a national infrastructure regime. We need to amend planning policy to give even greater protection to the landscape, heritage and other concerns.
Solar power is another renewable energy source that has enjoyed unprecedented growth in recent years. Similar action to curb over-inflated solar subsidies in 2011 led to cuts in the feed-in tariff that had so long supported the deployment of solar farms. That drove down the cost on consumer bills and, despite the concerns of the industry, solar has continued to thrive, as evidenced by the number of applications across my constituency. Back in the Winterbourne valley, where we fought wind turbines 12 years ago, the same landowner tried to develop 175 acres—for those who do not live in rural areas, that is about 110 football pitches—by covering them with wind turbines. I am pleased to say that the residents, who probably had a degree of self-interest, took the application to judicial review and it has now been quashed.
I have no objections to solar power as such, and in most cases it is infinitely preferable to towering industrial wind turbines, stamping their carbon-intensive footprint across our beautiful landscapes. However, the Energy Minister, my right hon. Friend the Member for Bexhill and Battle (Gregory Barker), was right when he said that support for solar as part of our future energy mix does not equate to wanting the
“uncontrolled expansion of solar on the countryside”.
That means, in future, favouring domestic, retail, industrial and commercial rooftops and on-site generation, such as deployment on brownfield sites and car parks. In my view, our locally led planning system should be the sole judge of such developments.
Shale gas—I mention this because it was also mentioned in the Queen’s Speech—is a valuable resource that we should be considering, but when fracking takes place in our communities it, too, should come under the control of our democratically elected councillors and local communities, because they are essential to the decision-making process. Our future energy supply and security must remain at the top of this country’s agenda, but that should not mean sacrificing our natural environment or the quality of life of local communities, whether in Dorset or elsewhere.
Let me turn to the final paragraphs of yesterday’s Queen’s Speech, which included the words:
“My government will work to promote reform in the European Union, including a stronger role for member states and national parliaments.”
That is fundamental. It is a positive message that, after the European Parliament election results—which sent us a clear message—says that we need to look positively at how we develop our relationship with the European Union.
The rise of UKIP and other far-right movements across Europe is a manifestation of the electorate’s disapproval of mainstream political parties and their handling of the financial crisis that engulfed the world, and particularly some European states, in 2008. Their dissatisfaction is justified, but the European elections come at a time when the British and European economies are turning the corner. With growth on the up—that it is not just my assessment; the International Monetary Fund and the OECD have indicated that in this country growth is up and, although modest, consistent, with employment numbers rising—I think the overall sentiment towards the European Union has been improving, both at home and across the rest of Europe. Despite UKIP’s rise in popularity, 70% of the voters who turned out in the European elections voted for parties that want Britain to remain part of the EU.
I urge all the mainstream political parties represented in this House not to use the EU as a fig leaf to cover other failings. What is needed is leadership and real solutions to the challenges facing this country and Europe. The populist and xenophobic panaceas offered by far-right parties are not the answer, as our not-so-distant history has shown us.
Unfortunately, UKIP Members of the European Parliament have consistently failed to work for their constituents and promote British positions. For about a month, I tried—not particularly scientifically—to ask virtually everybody I met in my constituency whether they could tell me who were the two UKIP Members of the European Parliament for the south-west. I did not find a single person who could answer the question. Many of them knew who the three Conservative MEPs were—and the one Liberal Democrat MEP—who, I have to say, have all been diligent over the past five years, working hard for their constituents. The UKIP MEPs are the least hard-working of all MEPs. At a time when Britain in Europe needs all hands on deck, they have been sleeping on the job and I do not expect the new batch to perform any better. It is more important that the rest of the MEPs we send to Brussels are influential, involved, active and constructive, and are prepared to engage, build alliances, lead, write reports and vote on the decisions that affect all of us.
Of course, Nigel Farage is popular. He is the average bloke we might meet in the pub—well, not quite average. The answer to every problem, as far as he is concerned, is either Brussels or immigrants; or, if we put them together, “It’s foreigners”—although not his wife, who happens to be German. He complains about hearing foreign voices on the train. When Mr Farage is on the Eurostar, travelling to Brussels, and he crosses the Belgian border, does he speak Flemish or French? I wonder what the answer is.
Huw Irranca-Davies
I thank the hon. Gentleman for giving way, and for his considered comments on UKIP and those on the more extreme edges of the debate. The point he makes about immigration is moot, because people are talking about it on the doorstep. However, I think it would have been a different conversation on the doorstep, with his constituents and mine, if UKIP had elevated its conversation to talk about the real issues around pressures on services, and if, for example, Nathan Gill, the UKIP MEP elected in Wales, had fronted up to the fact that, as we now know, he employed immigrant labour for his own business. It seems to be a case of do as I say, not as I do.
Mr Walter
The hon. Gentleman is very perceptive, because I have Nathan Gill’s name written down here and I was going to mention him in a moment or two.
I want to continue briefly talking about Nigel Farage, because in UKIP terms he is quite moderate. What concerns me most, when listening to many UKIP members and supporters, is that they use the word Gypsy, which is for them Roma, which means Romanian, which therefore means that all Romanians are criminals. Bringing together those terms in a very ignorant way is something our hard-working European partners find deeply offensive. The hon. Gentleman mentioned Nathan Gill, the newly-elected UKIP MEP for Wales, who has been employing large numbers of eastern Europeans and accommodating them in bunkhouses, for which he then charges them rent. I think he has probably done a great service for his own pocket. Whether he has done a great service for the British economy, I am not sure.
If we are going to look at migration, we must remember that some 2.3 million EU nationals live in the United Kingdom. It is estimated that they contribute about £25 billion to the UK economy. In fact, there are fewer eastern Europeans living in the UK than there are UK nationals living in the rest of Europe. Some 1 million UK nationals live either permanently or temporarily in Spain, which is 300,000 more than the number of Poles living in the United Kingdom. However, most of the Poles living in the United Kingdom are here to work and to make a contribution, whereas most of the UK nationals living in Spain are there to use the local services because they are retired and elderly.
We need a sense of perspective, because we have a great opportunity. This year we are negotiating a new trade deal with the United States—the transatlantic trade and investment partnership—which will bring together 40% of the world’s GDP in one effective single market. That deal is too good to turn our backs on. I therefore hope we can turn our backs on the UKIP remedy for our problems. I hope we will treat the commemorations this year of the first world war and the 70th anniversary tomorrow of the D-day landings and the start of the liberation of Europe as a siren call to build on what the founding fathers of the European Union saw as the goal. It is not a centralised Government in Brussels; it is the European nations working together in harmony for the prosperity of all our peoples.
Kate Green (Stretford and Urmston) (Lab)
I am grateful for the chance to participate in the debate, and it is nice to be doing so just after the length of time that it has taken for women to be able to contribute to the proceedings of the House has been highlighted. I know that you, Madam Deputy Speaker, the hon. Member for Brentford and Isleworth (Mary Macleod) and others are especially pleased to celebrate that today.
I believe that my constituents who watched the Queen’s Speech were looking for measures that would give them a sense of confidence and security about the future—a sense that there would be secure jobs, that they would have stable homes, and that they would be able to get on rather than having to scrape by wondering from week to week how things would pan out. There were a few welcome measures. I was pleased to hear the announcement about free school meals, and any investment in helping families with the cost of child care is welcome too. However, I want to say something very clearly and strongly to Ministers about an issue that is brushed aside each time it is raised.
Far too many people in this country who are in work are working in poverty, and that is simply not acceptable. The measures that Ministers talk about, such as the raising of the tax threshold, are not sufficient on their own, because the lowest-paid workers, particularly those on zero-hours contracts, are unlikely to benefit from them. Any fiscal measures must be accompanied by much firmer and more determined action on low pay. That is why we have spoken of the need to be much more proactive in addressing the phenomenon of zero-hours contracts, and to take much more energetic action to ensure that the national minimum wage increasingly becomes a wage on which people can live and raise their families.
I also think that we should take much firmer action in bearing down on some of the basic living costs that families face: the costs of food, energy and housing. I agree with other Members who have drawn attention to the need to increase affordable housing supply. In Trafford, in my part of Greater Manchester, housing costs are relatively high. They are not on the scale experienced by Members with seats in London and the south-east, but, in Greater Manchester terms, Trafford is an expensive place in which to live. That applies particularly to people in private rented accommodation, who constitute a substantial proportion of my constituents.
Those people will be very disappointed by the deficiencies in the Queen’s Speech in this regard, because they are already being priced out of their accommodation. If they complain about its quality, the landlord will tell them to move out, and the knowledge that the landlord holds all the cards makes them feel deeply insecure about their tenancies. It is very regrettable that the Government have not been more active in relation to that substantial housing sector. Many people in my constituency aspire to own their homes and we want to support them, but we must recognise that a large number of people are living in private rented accommodation, and will continue to do so because they cannot afford, or do not have stable enough incomes, to commit themselves to buying their own homes. I implore the Government to think about what more can be done for those households.
However, it was energy that I really wanted to discuss this afternoon. Let me first say a little about energy costs. We must all be relieved that last winter was so mild. I know that many of my constituents really fear their energy bills—especially disabled people, older people and those who are bringing up young children, because they are at home more often, and because the vulnerability of many family members requires the heating to be turned on and turned up. It is because of that real fear that I want to say to Government Members that their scepticism about Labour’s 20-month price freeze is totally misplaced. The proposal has been greatly welcomed by my constituents, because it will give them a chance to manage bills and to plan a bit—perhaps to set some money aside for a rainy day to cope with day-to-day living expenses. I think that Government Members should think carefully about the nature of that commitment, and about what more can be done to encourage other energy companies to follow the example of those that have already shown what can be done.
I particularly wanted to speak about energy supply, in the context of the importance of energy security and managing climate impact. The issue is of huge concern and interest in my constituency, and it is also an issue of considerable pride. Trafford college is at the cutting-edge in offering renewables installation training, for instance. It is also a very live issue in my constituency, because there is real concern about the environmental impact of the fracking measures announced in the Queen’s Speech, and that is what I want to talk about this afternoon.
The north-west has been identified as having significant shale gas and coal-bed methane fields and drilling has already begun, for example just over the border from my constituency in the constituency of my hon. Friend the Member for Worsley and Eccles South (Barbara Keeley). There are also live proposals for a coal-bed methane site in Trafford. There is deep local fear that fracking will start happening in our community, and there is a particular worry about fracking starting in Davyhulme where air quality standards are already being breached. It is a built-up area that is next to the M60 and close to an airport, and the site is right by the proposed biomass plant. There is, at the very least, real concern that the air quality will worsen substantially if there is fracking and exploratory drilling, not least because of the additional traffic flows, which the Secretary of State acknowledged was one of the unfortunate by-products of fracking exploration.
The core issue, however, is a lack of transparency and of genuinely honest and open dialogue with local communities about the implications for them. For example, it took the local press to reveal that radioactive waste water had been placed into the Manchester ship canal by United Utilities a couple of years ago. That waste water had been brought to our neighbourhood with the purpose of disposing of it. The public should have been informed about that, and if the view was that that was done entirely safely, that, too, should have been explained to local people. It does nothing for people’s confidence in new energy sources if we have such cover-ups.
Friends of the Earth reports that Trafford council failed properly to consider the climate change impacts and did not therefore require an environmental impact assessment for the IGas application for coal-bed methane testing and production at Davyhulme. Therefore, we have not had a full environmental impact assessment of the likely consequences of such activity. Moreover, the Environment Agency has allowed exploratory drilling at Barton Moss next door, in the constituency of my hon. Friend the Member for Worsley and Eccles South. It seems to be quite untroubled by the fact that the IGas application to undertake such activity made it clear that it would be storing hazardous waste extracts on site. That is not covered by the Environment Agency permit, yet nothing appears to have been done to prevent it from carrying on with the activity. There needs to be more transparency and the regulatory regime needs to be much more effective if people are to have any confidence in this form of exploration. My constituents are very sceptical about whether they are being given all the facts.
Huw Irranca-Davies
My hon. Friend is making a very good contribution on hydraulic fracturing. Last year I visited Pau in southern France where for a couple of decades work has been carried out on carbon capture and storage underground. There is extensive seismic monitoring and monitoring of gas and so forth. It would be helpful if Ministers explained to us what long-term monitoring there would be of any sites where hydraulic fracturing is used.
Kate Green
I agree. There must be both the monitoring and the publication of the outcome of that monitoring and absolute openness and transparency about the impact.
My constituents are also anxious about the Government’s proposals to allow fracking companies to drill under people’s homes or properties without permission. I am pleased there is to be a consultation. The Secretary of State said this morning that there would be a full 12-week consultation on this, but I am puzzled as to where the Government are coming from because yesterday, in response to a question from the hon. Member for Brighton, Pavilion (Caroline Lucas), the Prime Minister said it would not be legal to go on to someone’s property and frack against their will, but I am not sure I got such a firm assurance from the Secretary of State this morning.
As my right hon. Friend the Member for Don Valley (Caroline Flint) pointed out, the coal and water and sewerage industries already have a right of access to underground land. It is important to have clarity as to whether Ministers intend there to be a comparable right in relation to shale gas and if that is the case whether the costs of any damage and any clean-up and so forth will fall to the industry, not to the taxpayer or property owners. As my hon. Friend the Member for Ogmore (Huw Irranca-Davies) suggested, there is also significant concern about assessing baseline data in relation to, for example, seismic activity or methane in groundwater, and maintaining the monitoring of any impact on that baseline data as a result of any fracking activity.
Finally, there is significant worry about the long-term impact of investing substantially in further fossil fuel technology at the expense of renewables investment. We are very clear that any investment in fracking and other gas-based technologies must be accompanied by rigorous and tough adherence to decarbonisation targets. Ministers have not said much yet to explain why they are so enthusiastic about investing in a fuel source that can only increase our fossil fuel footprint, and which will not deliver much in the way of energy security for a good 10 to 15 years—time that could be used to develop alternative sources of energy. There is real concern about the climate impact being rather underplayed.
I think my constituents would prefer a greener energy strategy, and at the very least they deserve absolute openness about decisions to engage in the exploitation of coal-bed methane and shale gas. I echo calls made in this Chamber today for the Government to proceed with caution, and I very much hope they will be heeded.
Mr Dominic Raab (Esher and Walton) (Con)
It is a pleasure to speak in this debate and to follow the hon. Member for Stretford and Urmston (Kate Green). She touched on some of the issues I intend to speak to, although she may have come to slightly different conclusions from those I shall reach.
The No. 1 thing for this Government from their inception through to this Queen’s Speech has been the economy. There is no divide between economic growth and fairness and all the things that follow through from that, including the cost of living, which is the subject of this debate. It has been mentioned that we have cut the deficit, and we hope it will have been cut by half by the end of this Parliament, as has been forecast. That is not just some bean-counting exercise; it relates directly to mortgage payments, and it is therefore a cost of living issue as well as an economic issue.
A lot is said about Government debt, but far less is said about banking and household debt. Both of those are down from their high point under the last Government, and that is important. None of us wants to have to talk to our constituents about taxpayers bailing out banks again, and with interest rates likely to rise—and rightly so—in the relatively near future, it is very important that household debt comes down as well, so that those on tight, fine margins in respect of their mortgages do not feel the pinch too much.
We have recently become the fastest growing economy in the advanced world, and as a result unemployment has come down to 6.8%, as opposed to the 8% rate left by the last Government. The private sector has fuelled a huge amount of job creation. The media and also many in this Chamber talk about job creation and unemployment as if it were an economic priority, but the most economically and socially disfranchised in this country are the unemployed, and jobs creation is about dealing with them. This Government’s record in that regard is stellar: in just four years we have seen businesses create double the number of jobs that were created in the last decade under Labour. That is absolutely critical.
Inflation has been one of the issues eating away at the cost of living for many of our constituents, but again this Government’s record is very clear. The statistics do not lie: consumer prices index inflation now stands at 1.8% as against the 3.4% we inherited from the previous Government. The British Retail Consortium figures out just this week show that because of supermarket competition there has been a decline in non-food prices of 2.8% over the year. That is critically important, and annual food inflation stands at 0.7%, the lowest rate since 2006.
Huw Irranca-Davies
I just want to dig under some of the things the hon. Gentleman has been saying about debt. How, for example, would he make sense of the fact that, according to a recent report, the Bridgend county borough area, which covers two constituencies and contains a big manufacturing belt and areas of prosperity, has seen a tenfold increase in the number of people taking out payday loans at the end of the week to ease themselves over into the following week? In spite of all the good news that the hon. Gentleman is giving us, something worrying is happening.
Mr Raab
I am trying to look at the big picture, and the fact is that household debt has fallen from its 2009 peak of about 109% of GDP to around 10 percentage points lower. I am not suggesting that there are no issues relating to other subsets of household debt, such as credit and payday loans, but if the hon. Gentleman looks at the big picture and examines the raw data, he will see that the present situation represents a significant improvement on the one that his Government left behind. He is right to look at other micro-issues, and we must continue to do that, but let us not lose sight of the big picture.
When it comes to the big picture, we have to talk about housing. We could talk about stamp duty, as I am tempted to do, and about planning regulations and the relevant taxation, but the key issue is the supply of new homes. We need to do more on that front. I am sure that the Secretary of State for Communities and Local Government does not feel that he is on the back foot in this regard; I am simply urging everyone to look at the raw data. Hon. Members will be delighted to hear that, according to DCLG figures, the average annual number of affordable homes built under this coalition was 48,000, compared with 31,000 during the 13 years of the previous Government. That represents a 50% increase, and we should recognise the progress that we have made as well as talking about what else needs to be done.
We are talking about fairness in this debate on the cost of living, and we should also talk about inequality. The Leader of the Opposition is a wonkish sort—I mean that in the best possible way—and I am sure that he will be delighted to learn that the Gini coefficient shows that inequality is lower under this Government than it was under Labour. People talk about tax cuts for millionaires, but he will also be delighted to know that people earning between £10,000 and £15,000 are paying 54% less tax under this Government than they were in the last tax year under the previous Government, and that millionaires are paying 14% more. The idea that this Government are the enemy of the low-paid and the friend of the millionaire is therefore news to us.
Huw Irranca-Davies (Ogmore) (Lab)
I am pleased to take part in this important debate. I am familiar with the refrain that you just issued to the Chamber, Madam Deputy Speaker, and I will definitely stick within that time limit and hopefully my speech will be even shorter.
Let me return to the remarks of my right hon. Friend the Leader of the Opposition in opening this debate on the Queen’s Speech yesterday, because he said something vital to this House, this Parliament, this Government and the country: that we in this House face a real challenge of relevance, legitimacy and standing in the eyes of the public. All Members from all parts of the House will have been out in their constituencies across the country, campaigning, knocking on doors and speaking to people in marketplaces, and so on, and that point will have come across crystal clear. The question is: how do we respond to that in the Queen’s Speech, the autumn statement and elsewhere in a way that makes sense to our constituents?
I want to focus on only one element—one that, sadly and tragically, is missing from this Queen’s Speech. For all the welcome news in the hard data in the claimant count analysis—including in my constituency, where the claimant count is down overall, although there is still a massive and enduring issue with long-term youth unemployment—for many people that is unfortunately not reflected in their satisfaction with being in work. The reasons behind that have not been referred to or engaged with by Government Members today, but that is the reality for many of my constituents.
The sad fact is that now, for the first time in the recorded history of this country, the majority of people defined as living in poverty are in work. Something is critically wrong with what we are doing. The fundamental question is whether or not we accept taxpayer-funded poverty pay where the Government—that is, the taxpayer—are asked to step in to prop up poverty wages. It is not all do with part-time work, zero-hours contracts, increased casualisation or agency workers; it is people in full-time work who cannot afford to feed their household, pay the rent, and so on.
I say simply to hon. Members on both sides of the Chamber that, with all the talk of rising employment, falling unemployment counts, and so on, if we do not deal with this fundamental issue, it will be a derogation of our duty as parliamentarians and also fly in the face of what we heard on the doorsteps, because it does not only affect our debates about welfare reform and how we create more jobs and good jobs; it also ties into those fundamental fears—fears of what people perceive and what the reality is—about immigration as well.
I have knocked on people’s doors, and the other day a woman in one household told me that she and her two children were both working full-time, yet their income was way below what they needed to live, not in opulence—not even taking two holidays a year, but one—but to do the basics of feeding their family and looking after each other. This also applies next door—these people are neighbours—where immigrant workers are living in multi-occupancy houses. They are on agency workers contracts and, because the national minimum wage, albeit pitiful as it currently is, is not adequately enforced, they are now being targeted by many who say, understandably in some ways, that it is their fault. Well, it is not their fault, and it is for us in this Parliament to do something about it: to protect the rights and conditions, the pay and earnings of everybody who works in this country.
I watched for six or seven minutes yesterday while the House was held rapt by the truth of what the leader of my party said in his opening remarks. It is worth putting them on the record once again:
“Fundamentally, too many people in our country feel that Britain does not work for them and has not done so for a long time—in the jobs they do and whether hard work is rewarded; in the prospects for their children and whether they will lead a better life than their parents, including whether they will be able to afford a home of their own; in the pressures that communities face; and above all whether the work and effort that people put in are reflected in their sharing fairly in the wealth of the country.”—[Official Report, 4 June 2014; Vol. 582, c. 15.]
This far into the 21st century I would say, not only to my own colleagues but to those on the Government Benches, that there is a point at which we have to make it clear that if we genuinely believe in dignity at work, that dignity has to be reflected in the way people are remunerated. We cannot do that overnight and we cannot do that if we are insensitive to small businesses, but we can do it with tax breaks to promote the living wage and by being serious about how we push up—over time, but more rapidly than we are—the national minimum wage. We can do it by dealing with the scourge of the abuse of agency workers. Too many agency workers are now in conditions where not only are they being recruited abroad, but they are being brought here and laid off after the 12-week period so that they do not receive the same protections as other people. We can do it not by completely ending zero-hours contracts, but by dealing with the abuse of them, where people who work regularly over a long time for an employer are not given the dignity and respect of being told, “You are doing a good job, we are going to keep you on. Here’s the contract.”
That is the sort of fundamental challenge we heard on the doorstep to the legitimacy and the reputational standing of this place. I ask Ministers to respond to that, because this Queen’s Speech simply did not.
Mr Pickles
Yes, indeed. We did that, I think, as recently as a couple of months ago. An exceptional case has to be made for housing on green belt. We know from the Solihull case that an exceptional case has to be made not only in terms of taking things off the green belt but putting things on to it.
The Opposition claim that there are half a million unbuilt houses with planning permission due to land banking; indeed, we have just heard that. I have to say that that is not entirely correct. Some 90% of those houses are currently in the process of being built or are about to be started. Our reforms on planning conditions in the infrastructure Bill will help to speed up the process. We have taken a series of steps to kick-start stalled sites, such as scaling back unreasonable section 106 agreements—all measures that the Opposition have opposed.
This Government have turned Britain around. We are safeguarding the public finances, there are 1.5 million more people in work, income tax has been reduced for 24 million people, and the deficit is down by a third. [Interruption.] If the hon. Member for Ogmore (Huw Irranca-Davies) wants to intervene, he should stand up and ask. [Interruption.] I will not give way at the moment.
This is the sort of decisive action that the Opposition can only dream of. Labour Members talk about the cost of living crisis and claim to understand it, but they failed to protect hard-working people when they had a chance. Instead, they doubled council tax, escalated fuel duty, and watched as building sites downed tools and shops were boarded up. In contrast, this Government are protecting people who want to get on and do the right thing by putting taxpayers at the heart of decision making.
Huw Irranca-Davies
I thank the right hon. Gentleman for giving way and for his advice on standing up. In standing up for my constituents, may I ask him to address the nub of my speech? The fall in the claimant count in my constituency, despite continuing long-term problems and long-term unemployment, is welcome news, but underneath that is the issue of poverty pay. Does he accept the situation under this Government whereby more people are in poverty and in work than in poverty and out of work? Is that acceptable?
Mr Pickles
We have been very clear that we want an increase in the minimum wage and want to do things to prosecute employers who do not pay it. We want to see people on the ladder. We do not take the Labour view: “You know your place and you’ll never get any better.” We believe that once people get on the employment ladder they will get a better job, move on and get promoted, and then reach a point when they want to put something back into society. There is nothing wrong with the dignity of labour.