Oral Answers to Questions

Jason McCartney Excerpts

Tuesday 11th September 2012 Commons Chamber

[Mr Osborne]

I repeat the general observation that we are making every effort, through legislation and enforcement activity, to reduce tax avoidance and to stop tax evasion. If my right hon. Friend has specific examples that he wants to bring to my attention, he should please do so, and if necessary we will investigate.

[Jason McCartney (Colne Valley) (Con)]

2. What recent steps he has taken to support nationally important infrastructure projects.

[Mr Stewart Jackson (Peterborough) (Con)]

3. What assessment he has made of the effect that investment in infrastructure will have on the economy.

[The Chancellor of the Exchequer (Mr George Osborne)]

A competitive market economy such as Britain needs modern infrastructure if it is to succeed, yet in areas such as roads, energy and broadband, the last decade saw us fall behind the rest of Europe. This Government are righting those wrongs by overseeing a £250 billion investment in infrastructure—double the amount in the previous Parliament, even in these straitened times. Our new legislation will guarantee billions more in investment from the private sector. This will bring the new roads, the superfast broadband to our cities, and the new rail connections such as the northern hub. We are also cutting through the delays in Whitehall and in the planning system to make sure that we deliver faster than Labour did.

[Jason McCartney]

I welcome all that investment in infrastructure, particularly the investment in electrification of the trans-Pennine rail route and the full funding of the northern hub rail project. Will my right hon. Friend continue to invest in infrastructure so that we can recover from the shocking situation we inherited whereby for every 10 jobs created in London and the south-east under the previous Government, only one was created in the regions?

[Mr Osborne]

My hon. Friend points to the stark truth that, as he says, for every 10 jobs created in the private sector in the south of England only one was created in the north of England. In a region as important as the west midlands, for example, private sector employment fell during Labour’s period in office, and that was before the crash. We are investing in the infrastructure. The trans-Pennine electrification is incredibly important. The stretch between Liverpool and Manchester is already under way, and of course it then crosses the Pennines. We are also fully committing to the northern hub—something that was not done under the previous Government.

LIBOR (FSA Investigation)

Jason McCartney Excerpts

Monday 2nd July 2012 Commons Chamber

[Mr Osborne]

The Committee will be set up in the normal way.

[Jason McCartney (Colne Valley) (Con)]

Will the Chancellor once again confirm that progress is being made towards a more responsible banking system, with the separation of high street domestic banking and banks’ so-called casino operations?

[Mr Osborne]

My hon. Friend is right: we are proceeding with a change to the structure of British banking, in which we will ring-fence the retail banks from their investment banking arms. [Interruption.] There will be plenty of opportunity for Labour ex-Ministers such as the shadow Chancellor to appear before the Committee, if he is worried about that. We will introduce a Bill, which will go through Parliament next year. In answer to the point about a public inquiry, why spend three or four years before getting to legislation? Why do we not use the opportunity to get it right now, and amend the Bill that will be before Parliament?

Changes to the Budget

Jason McCartney Excerpts

Monday 11th June 2012 Commons Chamber

[Mr Gauke]

My understanding is that Her Majesty’s Revenue and Customs is continuing to work with the industry to provide clarity in this area. There have been concerns; I think there was a misinterpretation of earlier advice and I believe that that is in the process of being addressed.

[Jason McCartney (Colne Valley) (Con)]

I greatly welcome the consultations, but will the Minister confirm that the Government will stand firm on the main facets of the Budget, which have resulted in tax cuts for 25 million people, council tax frozen for the second year running and fuel duty being 10p lower than it would have been under the other lot?

[Mr Speaker]

Order. I did not hear a question about changes, but the hon. Member has registered his view with force and alacrity, and it is on the record so his constituents will hear it.

IMF

Jason McCartney Excerpts

Monday 23rd April 2012 Commons Chamber

[Mr Osborne]

I have never denied that there was an international economic crisis; what I said was that those problems were not visited upon Britain from abroad. Britain was at the epicentre of the crisis, with the biggest bank bail-outs, the most indebted households, the most over-leveraged banks and one of the largest deficits going into the crisis. That is what I complain about, and I complain in particular about the man who was responsible for most of those economic policies giving us lectures on them afterwards. I welcome the fact that the hon. Member for Coventry South (Mr Cunningham) supports the IMF and an increase in its resources, but the money does not come out of the public spending cuts that we have had to make in order to deal with that mess; it comes out of our foreign exchange reserves. We are exchanging one asset for another, and as I have said, every country that has lent money to the IMF has got its money back.

[Jason McCartney (Colne Valley) (Con)]

Happy St George’s day, Mr Speaker.

I very much welcome the fact that the loan will be returned with interest, but does my right hon. Friend hope, as I do, that those interest payments are not returned at the expense of countries such as Greece racking up yet more debt?

[Mr Osborne]

IMF loans are made with conditions, and one condition is interest, although there is a specific programme to help very low-income countries to cope with the interest costs. It is very important, as part of any IMF analysis, that we undertake proper debt analysis, and the IMF has been pretty instrumental in driving through the private sector creditor write-offs that have happened in Greece in order to improve debt sustainability, something which—I do not think it is any secret—many eurozone countries were not particularly in favour of. The IMF can therefore take action to improve debt sustainability.

Oral Answers to Questions

Jason McCartney Excerpts

Tuesday 6th March 2012 Commons Chamber

[Mr Osborne]

In two weeks’ time I will produce the latest Office for Budget Responsibility forecasts for the fiscal situation, so the hon. Gentleman will have to be patient and wait until then.

[Jason McCartney (Colne Valley) (Con)]

T6. With new businesses setting up and others expanding in my constituency, I very much welcome plans to promote equity investment in new business ventures through the seed enterprise investment scheme. What else is being done to support new business ventures across my constituency and the rest of our nation?

[The Exchequer Secretary to the Treasury (Mr David Gauke)]

My hon. Friend is absolutely right to highlight the seed enterprise investment scheme, which will provide 50% income tax relief on investments in new start-up businesses. There is also the £50 million business angel co-investment fund, supported through the regional growth fund, the business coaching for growth arrangements and a number of measures that HMRC is taking to help start-up businesses.

Banking Commission Report

Jason McCartney Excerpts

Monday 19th December 2011 Commons Chamber

[Mr Osborne]

We expect the bonus pool to be lower than last year and very much lower than four or five years ago, when it was probably four times what it will be now, so bonuses have come down. We have a very transparent regime, which did not exist when we took office, with the pay of the eight highest-paid non-board executive members now having to be disclosed. Above all, however, people should pay attention to what the Financial Policy Committee has just advised, which is that banks should retain earnings to build up capital at a time such as this, not pay them out in bonuses. The Governor of the Bank of England, the Financial Services Authority and I have all made it clear that banks would do well to pay attention to that advice over the next couple of months.

[Jason McCartney (Colne Valley) (Con)]

Does the Chancellor agree that the high street banks have a key role to play in regenerating our towns and rural communities, by continuing to have a presence on the high street?

[Mr Osborne]

Yes, I do, and, to be fair, the banks themselves acknowledge that they withdrew from the high street too much. We want to get back to more of that face-to-face banking that served our country well for many decades. As I have said, the banks acknowledge that, and they have come together to create the business growth fund, which will invest in new start-up businesses. They have also issued a new code of conduct to enable them to get back to the high street banking that we remember from the past.

Alcohol Taxation

Jason McCartney Excerpts

Wednesday 14th December 2011 Westminster Hall

[Dr Wollaston]

I thank my hon. Friend: he makes an excellent point about the decline in rural pubs and why any action that the Minister takes has to take into account the impact on rural pubs and, of course, town pubs.

[Jason McCartney (Colne Valley) (Con)]

I congratulate my hon. Friend on securing the debate. I have to declare an interest. I worked behind the bar in one of my local pubs on a recent Friday evening, celebrating British beer week. I am also a member of the all-party beer group. I echo the comments made by my hon. Friend the Member for Burton (Andrew Griffiths). In a pub, we have a safe environment; we have a landlord who is licensed. That encourages responsible drinking. The pub I worked in—the Wills O’Nats in Meltham—was a family environment. Young people were there, drinking soft drinks until early in the evening. Does my hon. Friend agree that any taxation put in place by the Government should not just be about revenue streams, but should encourage responsible drinking in the community pub environment?

[Dr Wollaston]

I absolutely agree. The point is that in the UK harmful drinkers buy 15 times more alcohol than moderate drinkers, yet they pay 40% less per unit. Those are the groups that are most influenced by pricing. That is why I agree with my hon. Friends that the problem does not come from pubs.

I did have a prop for the debate. Last weekend, my researcher was able to access 2 litres of own-brand cider from Asda for £1.48, which worked out at just 18p a unit. With a four-pack of bitter for 68p, the price was just 17p a unit. I particularly objected to the labelling. It said, “Asda Smart Price”. I put it to hon. Members that there is nothing smart about charging 68p for four units of alcohol. That would send a woman well over the safe limit for a single day for just 68p.

Fuel Prices

Jason McCartney Excerpts

Tuesday 15th November 2011 Commons Chamber

[Mr Jones]

I will not give way, as other Members want to get in.

[Jason McCartney (Colne Valley) (Con)]

Will my hon. Friend give way?

[Mr Jones]

Indeed.

[Jason McCartney]

To follow up my hon. Friend’s earlier comments about having a swift half, I recently spent an evening serving behind the bar in one of my local rural pubs to celebrate British pub week—the Wills O’Nats in Meltham, a very rural pub a mile from the nearest houses. All the staff have to drive there. All the customers drive there, of course, with a designated driver and with soft drinks. So it is important not just for enjoying a drink, but for employment opportunities that we support our rural pubs and that we try to do what we can with the fuel duty to help such employment.

[Mr Jones]

As my hon. Friend rightly points out, that is a vital issue for our local communities.

The road transport angle is vital to my constituency, where many jobs depend on the industry, as it is a major road and network hub for UK distribution. Many transport and haulage companies are suffering greatly. As we have heard, most heavy goods vehicles do about 8 miles to the gallon, so the planned 3p increase in January 2012 will add about £15 a week to the cost of running a vehicle, according to figures I have received from the Freight Transport Association. For companies with fleets of more than 50 vehicles, of which there are several in my constituency, the planned increase will increase their costs by £37,000 a year. They will either absorb the cost or pass it on to their customers. With such low operating margins in the transport sector these days, I suspect that it is inevitable that the increase will be passed on, thus adding further inflation to the supply chain.

Furthermore, an increase would also widen the gap between UK and continental fuel prices and increase the number of foreign trucks operating in the UK. We should think carefully about that, because foreign trucks pay no UK fuel duty, no UK road fund licence and no UK employment taxes. That will increase their ability to undercut UK hauliers, potentially put UK jobs at risk and exacerbate the loss of tax take that hon. Members have mentioned this evening. Smaller haulage companies tell me that fuel prices are crippling their cash flow, as they have to pay at the pump or on very short seven-day credit terms, whereas their customers want 30, 60 or 90-day credit terms.

I would like to say more on this important matter and talk about the general motorist and car driver, but unfortunately I am running short of time. In conclusion, deficit reduction is rightly the Government’s first priority, but I appeal to the Chancellor to listen to the public on this vital issue, particularly before his autumn statement, and see what he can do to minimise the impact that it might have on our hauliers and motorists.

Eurozone Crisis

Jason McCartney Excerpts

Thursday 27th October 2011 Commons Chamber

[Mr Osborne]

The discussions on treaty change, which the Council conclusions on the eurozone mention, have only just begun, so I have not had those discussions.

[Jason McCartney (Colne Valley) (Con)]

Would my right hon. Friend anticipate how his international counterparts would have reacted at recent EU summits if he had argued that, as advocated by Labour Members, the UK should increase its borrowing by the end of this Parliament by up to £87 billion a year?

[Mr Osborne]

We would, of course, have been laughed out of the summit. We would not even have been able to sign up to the Council’s conclusions. The Labour party policy has no plan to reduce the deficit—[Interruption.] Well, if there is a plan, let us hear it. Let us hear one example. The Labour party has no plan to reduce our deficit, which is higher than that of almost any of the countries we have talked about. It has a plan basically to pull us out of the International Monetary Fund and a plan to join the euro—such plans would be treated as slightly bizarre at some of these meetings.

Summer Adjournment

Jason McCartney Excerpts

Tuesday 19th July 2011 Commons Chamber

[Jason McCartney (Colne Valley) (Con)]

I am not interested in media-driven lynch mobs. I am not interested in the politically motivated settling of personal vendettas. The big issue in my Colne Valley constituency is the wanton destruction of beautiful and historic countryside.

Thousands of concerned local residents have attended public meetings, registered their objections via e-mail and on the council website, written letters and contacted their local representatives to oppose plans to bulldoze the countryside for hundreds of new homes and industrial developments. I called one such public meeting in Lindley in north Huddersfield to oppose plans for 300 new homes and a data campus on Lindley moor. The church hall was packed on a Friday evening with hundreds of concerned local residents. There have been other recent meetings in Slaithwaite and Meltham.

These plans are being forced through with little meaningful consultation and little regard for the already creaking local infrastructure. Roads are clogged, schools are oversubscribed and people are extremely lucky if they can get an NHS dentist. That all stems from the previous Government’s regional special strategies and top-down housing targets, which were imposed on local communities. My local Kirklees council was given a figure of 28,000 new homes. It is still pursuing that figure via a blueprint for development called the local development framework, which has been widely lambasted—rightly so.

The consultation has been flawed, with thousands of homes failing to receive the consultation leaflet that had supposedly been delivered to all homes in the area. As a result, my hon. Friend the Member for Dewsbury (Simon Reevell) and I called for the LDF consultation to be suspended. That was because the LDF in our area was not

“reflecting local people’s aspirations and decisions on important issues such as...housing and economic development.”

A High Court judgment on 7 February this year stated that councils should make the intended abolition of the regional strategies, otherwise known as the top-down targets, a “material consideration” pending enactment of the Localism Bill. However, the housing target numbers remain at Kirklees council.

I warmly welcome the Government’s promise to reform the planning system radically and to give neighbourhoods much more ability to determine the shape of the places in which their inhabitants live. The Localism Bill will give local people a real say in what developments go on in their area. Community groups, parish councils and local business organisations will be involved in developing neighbourhood plans. However, we have to wait for the autumn for that to happen.

Another change that I would like to see is related to the new homes bonus. I have proposed in the Chamber a higher rate of bonus for homes built on brownfield sites, to incentivise developers to go for those sites over and above greenfield sites. I really believe that developers and my local council need to engage better with local communities. That will happen after the Localism Bill becomes law later this year, but planning applications also need to demonstrate clear improvements to local infrastructure. The plans for housing at Lindley moor, for example, show little regard for the heavily oversubscribed schools and clogged roads.

Finally, I stand side by side with the many people in my constituency who are deeply worried and angered by the way in which plans for homes and the data campus are being railroaded through with little genuine consultation, no regard for infrastructure and little explanation of the need. We are not anti-development, we just want better, sustainable developments that involve the whole community.