M5 Motorway Accident

Debate between Jacob Rees-Mogg and Justine Greening

Monday 7th November 2011 Commons Chamber

[Justine Greening]

The hon. Gentleman is right that the fire was a significant factor in the number of fatalities and it is fair to say that it was a particularly unusual occurrence. He asks about fuel tanks on heavy goods vehicles. As he will be aware, there are a number of regulations on ensuring that HGVs are safe, and he will be interested to know that EU harmonisation rules mean that over the next three years those standards will become even tougher. I am very happy to talk with the hon. Gentleman, who has an interest in this area, to see how we can maintain a balanced and informed debate on how to improve road safety.

[Jacob Rees-Mogg (North East Somerset) (Con)]

May I add my name to those of my right hon. and hon. Friends in commenting on our sympathy for the bereaved and our praise of the security and emergency services in Somerset, particularly the Avon and Somerset constabulary? May I also thank the Secretary of State for being calm in her approach and for being willing to look at the evidence, particularly in relation to the 80 mph speed limit? I do not think that now is the time to be dwelling on those issues, but a full and thorough review must be the right way forward.

[Justine Greening]

I agree with my hon. Friend. Critically, we must bear in mind that safe driving on motorways is not simply about the maximum speed limit; it is also about smart driving—not driving too close to people in front and braking in a way that is not too quick and that surprises motorists behind. There are an awful lot of different aspects of safe driving on motorways. In fact, we are already considering whether we can ensure that learner drivers have some experience of driving on motorways as part of their training. That proposal has been put to us. We can do a number of things to improve the situation. Clearly, it is important for individual drivers at all times to bear in mind that although there is a speed limit, they must drive according to the conditions of the road and the weather.

Common Consolidated Corporate Tax Base

Debate between Jacob Rees-Mogg and Justine Greening

Wednesday 11th May 2011 Commons Chamber

[Justine Greening]

At the moment, the directive is in such a rough draft that it is not exactly clear in what shape it will end up. Important questions are already being asked not only by the UK but by countries such as the Netherlands and Sweden, and by some smaller and newer member states such as Lithuania. They are asking whether there is a problem that needs to be solved in the first place and whether the European Commission’s hypothesis about why a common consolidated corporate tax base is required is correct. The second debate that is starting to happen in earnest across Europe is about whether this solution is the best solution to solve that problem. The Government’s position is that we do not believe that the problem exists in the form that the European Commission articulates, and that this solution would not be the right solution to that problem, even if it did exist.

[Jacob Rees-Mogg (North East Somerset) (Con)]

rose—

[Justine Greening]

Perhaps if I make a little more progress, it will help hon. Members to understand the Government’s position in a little more detail and where we are in the proposal’s development, which it is important to understand. It is also important to understand Parliament’s role in the process, which is the whole point of this debate.

A number of issues need to be addressed in the policy substance of this proposal. Those issues will have to be discussed among all 27 member states. That is why we have committed to engage in the ongoing EU discussions on this proposal. It is important that the UK participates fully in the negotiations, so that we can seek solutions that meet the interests of the UK and the EU as a whole. Although the issues of subsidiarity and proportionality are fundamental, we need to be ready to engage fully in the negotiations that are starting in Brussels. We need to engage not only in Brussels, but with our fellow member states to ensure that we influence them.

For example, member states will need to consider the implications of the proposal for companies operating across the UK, particularly if it were taken forward through enhanced co-operation. We should also seek to ensure that a common consolidated corporate tax base does not undermine UK competitiveness or create opportunities for tax avoidance.

Such considerations will involve examining some of the specific issues raised in the European Scrutiny Committee’s helpful report, such as the potential implications for the tax treaties and the risk of creating additional administrative burdens on business. Of course, one of the European Commission’s arguments is that the proposal will reduce burdens and provide simplification, but, like the Committee, the Government simply do not accept that argument.

I turn to some of the specific concerns that the Committee raised in its report. First, I will address the proposal’s legal base. Article 115 of the treaty on the functioning of the European Union provides for EU legislation that directly affects the single market. In strict legal terms, it is possible to make a case that that article is an acceptable legal base for a proposal such as that which we are discussing, but the Government have broader reservations. We do not believe that a common consolidated corporate tax base is necessary for the internal market to function effectively, and we do not accept the assumptions that appear to underpin the Commission’s proposal. At present, we are therefore not convinced that the proposal is consistent with either subsidiarity or proportionality. In this instance, we think it difficult to separate the two, because both centre on whether such an EU mechanism is necessary to achieve the objectives set out by the Commission.

[Jacob Rees-Mogg]

Establishing the legal base is absolutely crucial before the Government engage in negotiations about the form of the directive. May I draw the Economic Secretary’s attention to conclusion 2.12 of the European Scrutiny Committee’s report? It clearly states that the ability for the single market to have taxes refers to turnover taxes and VAT, and not to the type of tax included in the directive. If there is no legal base for the tax, is there any point in having further discussion?

[Justine Greening]

Our assessment is that it is possible to make the case that because article 115 of the TFEU relates to the effective functioning of the single market, it is relevant to consider whether the proposal would affect the single market. There is also the question whether there is any problem that needs to be addressed. We do not accept that there is, but if there were, we would have to ask whether the proposal was the right solution. That is what I mean when I talk about proportionality. We must also consider subsidiarity, and we do not believe that the two can simply be separated, because they go hand in hand.

For the Government to be reassured that the proposal complies with the fundamental principles of proportionality and subsidiarity, we would require far stronger justification from the Commission. We would need evidence that the existence of 27 different tax systems is a significant barrier to the functioning of the single market—we do not believe it is, or that the evidence is there to support such a conclusion—and directly results in all the specific tax obstacles that the proposal claims to address. We would also need evidence that the proposal is the only, or the best, way to address those tax obstacles. We will continue to raise those points with the Commission during our discussions, and we will continue to engage proactively and constructively with other member states on the important issues of policy substance, including those highlighted in the European Scrutiny Committee’s report.

As I have said, we are not the only member state that has raised significant concerns about the proposal, and we will continue to talk to others about their concerns and ours.

Oral Answers to Questions

Debate between Jacob Rees-Mogg and Justine Greening

Tuesday 22nd March 2011 Commons Chamber

[Justine Greening]

I simply do not agree. As we have heard, every independent forecaster is backing our fiscal consolidation plan. The hon. Gentleman talks about evidence, but the retail sales volume grew strongly in January. The Chartered Institute of Purchasing and Supply purchasing managers index grew faster in January than analysts expected, while manufacturing reached a record high. Only today, the CBI industrial sector survey says that orders are going up. Our economy is rebalancing over time, and although the hon. Gentleman says that there is no evidence for that, there is such evidence. There is job creation, and that is what we will need if we are to turn our public finances around.

[Jacob Rees-Mogg (North East Somerset) (Con)]

Is it not the case that the Government’s debt reduction plan is absolutely right, as we see in the gilt market and the country’s credit rating? Is it not also true that, throughout history, coalition and Conservative Governments clean up the economic mess left by socialists?

[Justine Greening]

My hon. Friend is right. The consequence of that economic mess is that Labour Governments always leave unemployment higher than when they came into office. It is always that that we seek to tackle. He is right that there is no alternative plan. We have heard about a defunct plan for VAT and petrol, but we have not heard from the Opposition any plan to tackle the deficit. They said they would have some thoughts. Clearly, they are totally thoughtless.