Budget Resolutions and Economic Situation

Iain McKenzie Excerpts

Wednesday 18th March 2015 Commons Chamber

[Mr Iain McKenzie (Inverclyde) (Lab)]

Members from across the Chamber would probably describe the Chancellor’s statement as quite unbelievable, but for very different reasons. My constituents would certainly describe it as unbelievable because they have again listened to a Budget that is unable to hide the fact that, after five years of this Government, working families are worse off. The Chancellor claimed otherwise, but we know that the real truth is that people in this country are still struggling.

As we know, we have a Chancellor who gives with one hand and takes much away with the other. His tax and benefit changes since 2010, including that big VAT rise, have cost families dearly year after year, and no pre-election tax cut can make up for that. Worse still, we know the Tories are planning more extreme cuts after the election, which will go way beyond balancing the books.

We need a better plan—a Labour Budget that puts working families first. That is why this Budget will not be welcomed by the majority of people in my constituency of Inverclyde, or indeed in Scotland. Labour’s plan for creating wealth does not just target a few at the very top, but, unlike this Government’s plan, aims to help hard-working families across the country. We need something better, recognising that Britain only does well when we all do well and prosper. The gap between rich and poor is still too wide, and history tells us that our society does not fare well when that gap is so wide. We need support for and investment in business; and, as has been said, we need investment in our young people too, to create not just jobs for them, but careers.

The Chancellor claims that the economy is a success, but the reality is failure on every measure which the Government have set themselves to achieve. They have borrowed more, debt is up, low-paying jobs are up and tax receipts are down. All those are connected, for people cannot expect to deliver an economic recovery solely through the millionaires at the top. The squeeze on living standards during the past five years means that the Chancellor has failed to bring in the tax revenues necessary to balance the books. Indeed, the Government have broken their promise to balance the books by 2015. Low and stagnant pay means that tax receipts have been £68 billion lower than expected and national insurance contributions £28 billion lower than expected.

The Government have failed to tackle the cost of living crisis. Wages continue to stagnate, and too many jobs have been created in low-paid, insecure work, rather than in high-paid, high-skill sectors. So what is the Government’s solution to fix their mess? As we have heard, it is to take Britain back to spending levels last seen in the 1930s, with further planned cuts of £50 billion. We have already had five years of that and it has not worked. The Government want to run the state, but they do not believe it should exist. The Government’s plan has clearly failed, and we need a different approach. We need a Government with new ideas on how to support business, to create jobs, especially for our young people, and to improve living conditions for hard-working families.

Labour’s Budget would have seen support for working families not simply through tax-and-spend redistribution but by building a more inclusive recovery. Wealth does not flow from the top down: it is created from the bottom up, by working people and families. Every person in every sector of the economy is a wealth creator.

My constituents in Inverclyde will not be fooled by the small rise in the minimum wage announced by the Chancellor to take effect in October. It falls far short of the £7 minimum wage that he promised over a year ago. Under this Chancellor, we have seen the value of the minimum wage eroded and working people’s living standards fall. The hard-working families I represent in Inverclyde are on average at least £1,600 a year worse off under the Chancellor. Without doubt, Labour has set a more ambitious target for the minimum wage, which would see it rise to £8 an hour. We will also act to make sure the national minimum wage is properly enforced, unlike this Government who have failed to get to grips with non-payment, and named and shamed but a handful of companies.

Labour will take action to help to make work pay with an economic plan that works for all, not just a few at the top. We will tackle low pay and address insecurity in the workplace. My constituents tell me on the doorstep that they are struggling to make ends meet as the cost of living crisis bites deep; they need a pay rise and fairness in their contracts at work. Increasing the minimum wage to £8 an hour would instantly benefit more than 6,000 people in my constituency, but we need to go further and encourage more employers to pay a living wage by establishing “make work pay” contracts.

My constituents would also benefit from our compulsory jobs guarantee to provide a job for every young person unemployed for more than a year. The Government sorely lack any plan to give those young people an opportunity in life. The jobs of tomorrow will come from a large number of small businesses, not simply a number of large ones. That is why we also need to look at how overheads can be cut for businesses, but the Chancellor has given us nothing like Labour’s promise to lower energy bills through a price cap or to reform the energy market. Cutting costs for businesses means they have more scope to hire, contributing to the recovery and creating more jobs.

Scotland needs more than low-paid, low-skilled jobs. In Scotland, 82% of the jobs created since 2010 fall into that category. Those jobs fall way short of allowing families to make ends meet from week to week, and we have seen in-work poverty increasing and zero-hours contracts flourish. If we do not get to grips with low pay, low skills and poor contracts, we simply cannot expect Britain to lead the way in existing markets or in developing new markets.

Labour’s agenda is about fairness and opportunity for all. I hope that this will be the last Budget from a Government focused on millionaires rather than the millions who need help.

Electric Vehicles (Vulnerable Road Users)

Iain McKenzie Excerpts

Wednesday 30th October 2013 Westminster Hall

[Mr Iain McKenzie (Inverclyde) (Lab)]

It is a pleasure to serve under your chairmanship again, Mr Hood. I congratulate my hon. Friend the Member for North Tyneside (Mrs Glindon) on securing this important debate.

Silent cars, be they electric or hybrid vehicles, are becoming more and more popular and their number is increasing year on year. In 2006, more than 39,000 such cars were sold, and the latest study shows a growth rate of about 5% by 2012. The reasons for increasing demand include the EU policy objectives of reaching the 2020 target for reducing carbon emissions and rising consumer awareness of climate change and the need to reduce the use of fossil fuels. Car manufacturers are well aware of buying trends and aim to meet the expectations of consumers who want the benefits of lower fuel consumption and emissions.

We have all become accustomed to the traffic noise that the internal combustion engine causes—be it petrol or diesel, two or four stroke—but in the modern age, it has been made quieter by means of a reduction in moving parts or engine compartment noise dampening. Some cars still make a lot of noise and some owners still like to hear the roar of an engine—if you were the lucky owner of a Ferrari, wouldn’t you?

Electric and hybrid cars make little or no sound when running at low speeds and their use contributes to quieter urban areas. However, not everyone benefits from that innovation, and others’ needs must be considered. That group comprises people with visual and hearing impairments, children and older people and other road users, such as cyclists. They are all exposed to danger, because they are no longer warned by audible noise from a vehicle engine and may be unable to react accordingly. We are, after all, taught from an early age to cross the road safely by looking and listening.

Silent cars have created an unforeseen tension among car manufacturers, environmentalists and organisations representing pedestrians. Guide Dogs in the UK has raised concerns about the implications of hybrid and electric vehicles. As we heard from hon. Members, silent cars can limit the independence of blind and visually impaired people in everyday life. Guide dogs are equally vulnerable to the dangers of silent cars.

Children are exposed to the dangers of traffic daily. Most children involved in accidents are under 10 years of age. The risks raised by the distractions of playing in the street do not need to be stressed, and they are increased by the use of silent cars. The youngest children have great difficulty in assessing the speed of an approaching vehicle, and silent cars increase the difficulty, because speed cannot be associated with engine noise. It is not only children and pedestrians with visual impairments who are affected—cyclists, who might not look behind before making a manoeuvre, people listening to an iPod or using mobile phones and older people are all at risk if they do not hear a vehicle approaching.

Awareness is growing in the USA and Japan of the dangers of silent cars. General Motors has been working with the US National Federation of the Blind to develop a safe level of sound to alert pedestrians.

[Mr Andrew Smith]

My hon. Friend makes a persuasive speech. Does he agree that an important argument from an industry perspective is that, although motor manufacturers want to be consulted fully and are ingenious in bringing forward solutions to problems, there are advantages in the certainty of knowing where they stand, rather than the uncertainty of not knowing when a regulation is coming or whether it will be voluntary or mandatory?

[Mr McKenzie]

My right hon. Friend makes a good point. When changes have been made to vehicle regulations in the past, there has been an area of overlap or a time scale to allow manufacturers to bring in the change. The safety aspects of this matter would override giving a discretionary term to bring in changes.

General Motors looked at a vibrating sensor that transmits sounds as vibrations, but its effectiveness is dependent on the vehicle emitting a sound. Although sound is deemed a critical component for the increased safety of silent cars for vulnerable pedestrians and other road users, experts in the USA believe that such cars also need to indicate directions and show acceleration or deceleration.

In Europe, Guide Dogs has worked with Lotus Engineering Ltd on developing a synthesised sound system that can be added to vehicles. The UK Government commissioned the Transport Research Laboratory to conduct two items of work: first, assess whether there is an increase in the incidence of accidents between silent or quiet vehicles and pedestrians; and secondly, assess sound requirements through simulated trials.

Not everyone supports adding sound. Opponents claim that artificial sounds will do more to cause noise pollution in the environment than aid pedestrians or other road users. There needs to be a clear definition of a recognisable sound and set requirements, to ensure that the sound conveys distance, speed, acceleration or deceleration and the size of the vehicle to the pedestrian or other road user. Safety must be paramount.

The European Parliament voted in February 2013 to require manufacturers to install an acoustic vehicle alerting system in hybrid-electric and electric vehicles. The legislation has been through the Parliament and is awaiting First Reading at the EU Transport Council. Guide Dogs, which works hard to give blind and partially sighted people the confidence to get about, has intimated its concerns.

Guide dogs are trained to sit at kerbs and await their owner’s assessment of when it is safe to cross the road. If the owner cannot detect a vehicle, they do not know whether it is safe to cross. One near-miss with a quiet vehicle could severely hamper a person’s confidence, and the lack of certainty resulting from the presence of quiet vehicles could be enough to deter people from leaving their home alone, for fear of being involved in a collision. Studies have shown that some electric vehicles cannot be heard until one second before impact with a pedestrian.

Guide Dogs “Safe and Sound” campaign for audibly detectible vehicles calls for the installation of artificial engine noises on all quiet vehicles to ensure their audibility for pedestrians. It also asks EU decision makers to support the introduction of mandatory artificial engine noises at the earliest opportunity and reject the addition of a mandatory pause switch to the regulation. We all expect the Government to use their position on the Council of the European Union to ensure that quiet vehicles in the UK are made safe for our pedestrians.

Oral Answers to Questions

Iain McKenzie Excerpts

Thursday 12th September 2013 Commons Chamber

[Stephen Hammond]

I have listened carefully to the hon. Gentleman’s case, and I accept the point about the Silvertown link—indeed, the Mayor has made a commitment to look at that. As I said to the hon. Member for Lewisham East (Heidi Alexander), any proposal to extend the underground and the rail system in that part of London is primarily a decision for the Mayor.

[Mr Iain McKenzie (Inverclyde) (Lab)]

6. What his policy is on the privatisation of InterCity East Coast rail services; and if he will make a statement.

[The Minister of State, Department for Transport (Mr Simon Burns)]

My right hon. Friend the Secretary of State announced the Government’s programme for rail franchising in March. This included the intention to return the InterCity East Coast franchise to the private sector by February 2015, and this remains our policy.

[Mr McKenzie]

Why does the Minister continue to claim that the only way to get investment in the east coast main line is through privatisation, when he is well aware of the planned upgrade and the new generation of inter-city trains, both paid for by the taxpayer?

[Mr Burns]

Because, as I would hope the hon. Gentleman appreciates, the purpose of Directly Operated Railways is not to run a railway ad infinitum; it is a short-term measure when a problem arises with a franchise. He is absolutely right that as part of the record-breaking investment in our rail infrastructure we are investing in the east coast main line—as we are doing in the west coast main line and other lines— because that is the way forward. With the innovation and impetus of the private sector and a private sector franchisee, the maximum benefits can be ensured from state and Government investment.

Oral Answers to Questions

Iain McKenzie Excerpts

Thursday 27th June 2013 Commons Chamber

[Mr Iain McKenzie (Inverclyde) (Lab)]

It has been revealed that the maritime rescue co-ordination centre in Belfast has been staffed below risk level on 191 shifts this year alone. Does the Minister find that acceptable, and, if he does not, what is he doing about it?

[Mr McLoughlin]

It is vital that we have cover, and that if there is low availability pairing arrangements ensure that others take over that cover. We will not demur from our responsibility.

West Coast Main Line

Iain McKenzie Excerpts

Monday 15th October 2012 Commons Chamber

[Mr McLoughlin]

I can certainly confirm that, and I am grateful to my hon. Friend for asking me the question. That is wholly the case, and the mistakes we found were mistakes made in the Department.

[Mr Iain McKenzie (Inverclyde) (Lab)]

We have now witnessed two procurement fiascos from this Government in quick succession. We have seen that contracts are not being monitored and we are seeing tendering processes that are clearly flawed. One would think that the Minister would be well aware of these and that if he had been alerted to them, he would not have awarded this contract. The question therefore arises: why did he award this contract when he knew that it was flawed?

[Mr McLoughlin]

The contract was not signed.

Oral Answers to Questions

Iain McKenzie Excerpts

Thursday 12th January 2012 Commons Chamber

[Mrs May]

I commend the women’s enterprise action that was taken in the north-west. That is a very good example of what can be done at local and regional level to ensure that we encourage women to use their full potential in the economy, which is to their benefit and that of the UK as a whole. Our introduction of business mentors is one thing that will help women not only to set up businesses, but to grow them in a way that will lead to them becoming employers.

[Mr Iain McKenzie (Inverclyde) (Lab)]

5. What assessment she has made of the effect of Government policies on efforts to tackle domestic violence against women.

[The Minister for Equalities (Lynne Featherstone)]

A progress review of the Government’s approach to tackling violence against women and girls was published on 25 November. It highlighted many of our achievements to date in relation to domestic violence, including, among many other measures: providing £3.3 million funding for multi-agency risk assessment conference co-ordinator and independent domestic violence adviser posts locally until 2015; introducing a requirement for multi-agency reviews after every domestic homicide; and piloting domestic violence protection orders in three police force areas.

[Mr McKenzie]

I recently visited a Women’s Aid project in my constituency. Is the Minister aware of the crisis in accommodation for women fleeing violence? Such projects have been left with little choice but to advise vulnerable women on how to minimise harm if they are forced to sleep on the streets.

[Lynne Featherstone]

I understand, with all that is going on in this age of austerity—there is not enough money to fund everything—that there are issues around some of the funding for women, but the Home Secretary and I could not have been clearer about the priority that the Government place on tackling violence against women, by ring-fencing £28 million of funding and by sending a loud and clear message to local authorities that they should not look for soft targets.

Coastguard Modernisation

Iain McKenzie Excerpts

Tuesday 22nd November 2011 Commons Chamber

[Mike Penning]

Some of what my hon. Friend has just asked for is above my pay grade and even comes under a completely different Department. The Secretary of State is sitting next to me and I am sure that she has heard the message loud and clear.

May I also reiterate—I hope I mentioned it in my statement—my complete admiration for the volunteers, whether they are in the volunteer lifeboats of the RNLI or the 3,500 plus volunteers who go out on a regular basis and put their lives at risk for us?

[Mr Iain McKenzie (Inverclyde) (Lab)]

It will come as no surprise to the Minister that, as the Member for Inverclyde, where the Clyde coastguard is situated, I am deeply disappointed with today’s announcement, which comes on the back of 800 new engagements in the consultation process, tens of thousands of signatures sent to the Prime Minister in support of retaining the Clyde coastguard and numerous letters from organisations to the Minister. How does the Minister intend to assure people on the west coast of Scotland that safety is paramount and that the loss of the Clyde coastguard station will not mean that the area off the coast of the west of Scotland will be a no-shipping zone?

[Mike Penning]

I know that it is difficult, but hon. Members should be careful about the emotive language that they use. When the Clyde co-ordination centre is not operational for whatever reason, its pair does the job on a regular basis. That happens and it happens around the country. That was why we went to this system and that was part of the submission. If the hon. Gentleman is disappointed by what I have said today, I must say to him that the previous Government’s proposals, which were on my desk when I arrived, were 10 times worse.

Coastguard Modernisation

Iain McKenzie Excerpts

Thursday 14th July 2011 Commons Chamber

[Mr Hammond]

I understand my hon. Friend’s specific local concerns; she has campaigned extremely hard on behalf of her local community and its concerns. Of course safety is paramount. This whole process is about making the coastguard service more resilient and more effective, and creating a proper career structure that will attract and retain the quality of people we need in a service that, frankly, has not had a good experience of industrial relations and personnel issues over the last few years. My hon. Friend says I should consult the experts; that is precisely what we have done. My hon. Friend the Under-Secretary has been around the country, talking to coastguards and has received countless delegations here, tapping into their expert knowledge. The proposals I have announced reflect that very useful input that they have made.

[Mr Iain McKenzie (Inverclyde) (Lab)]

Will the Secretary of State comment on two points along the same lines as questions already asked? First, with the announcement that the coastguard station on the Clyde in Greenock in my constituency is to close, I must ask the Minister whether he feels that safety has been compromised, especially on the west coast of Scotland, which is a particularly challenging coastline with demanding waters and a big increase in shipping in the area. Is safety on the west coast of Scotland being compromised? Secondly, will the right hon. Gentleman comment on the number of job losses in my constituency that will result from the closure of this station?

[Mr Hammond]

On the safety issue, the hon. Gentleman will know that the proposal in the original consultation was also to close the station in the Clyde—and that position still stands. This questioning of whether the closure of local stations will compromise safety betrays, I think, a failure to understand how the coastguard works and operates. What is really important is that the part of the service that receives calls and directs front-line rescue operations is effectively networked together. At the moment, we have what I consider in the 21st century to be a frankly shocking situation whereby each coastguard station is able to communicate and share work with only one other coastguard station. If there is a surge of work on the west coast, for example, due to a particular weather pattern, it is impossible at the moment for that work load to be shared with stations on the south coast, the east coast or elsewhere in the United Kingdom. It is to deliver that resilience that these proposals have been brought forward. The professionals who have evaluated them and who advise us are quite clear that this will enhance the resilience of the system and thus the safety of seafarers and coastal communities around the UK. I am quite happy to write to the hon. Gentleman specifically on the job loss issues relating to his constituency.