Jobs and Business

Jeremy Browne Excerpts

Friday 10th May 2013 Commons Chamber

[Mark Hendrick (Preston) (Lab/Co-op)]

I rise to speak about jobs and businesses, and in particular about those serious issues in our country that the Queen’s Speech has done—and will do—little to alleviate. Unemployment in Preston is currently about 7%, and a great deal of existing employment is low paid. With the measures that the Government are trying to introduce to make issues of health and safety less important and make things easier for employers, being in employment will clearly be a risky business. We recently commemorated the international recognition of workers who have lost their lives or fallen ill while in employment, yet we also have a Government who are making it more likely that employees will fall ill while in work.

At its lowest point, about 1,400 people in Preston were on jobseeker’s allowance. There are now about 4,000, which is very bad. Lots of young people are coming to my surgery complaining about being sanctioned, supposedly for not trying hard enough to find a job, but in fact very few vacancies are available in Preston. For those who are applying for jobs to be told that they are not trying hard enough is, in my view, adding insult to injury.

There are good industries—the hon. Member for Burnley (Gordon Birtwistle) mentioned aerospace, which is a good industry in north-west England, focused particularly on Lancashire. It is doing great things to train young people and get them into work. Westinghouse provides nuclear rods for the nuclear industry, but there are not enough such companies. Although I welcome the Government’s aerospace strategy and we are doing well in that area, we have unfortunately seen a gradual decline in many industries, particularly in consumer electronics and for a lot of consumer goods, and those industries and jobs have left this country to go to other shores.

The Business Secretary said that we cannot legislate our way to economic growth, but is not the Enterprise and Regulatory Reform Act 2013 a way of legislating to promote economic growth? We must be able to create the conditions to allow that growth, and the Business Secretary’s earlier response on the creation of more than 1 million private sector jobs was interesting. Why has that not resulted in any significant growth? He did not say—this was left to one of my colleagues—that it is because many of those jobs are low paid or part time, and that is why they are not contributing to the growth we would like to see in this country.

As we teeter, as we saw, on the brink of a triple-dip recession, let us cast our minds back to before the general election in 2010. The Labour party had a programme that would have got rid of the deficit over two terms, and halved it after the first. This Government promised to wipe out the deficit in one term. What we saw beforehand was a programme that would have benefited this country in a great way being pooh-poohed. When we said there would be a double-dip recession—[Interruption.] The Minister is chuntering from a sedentary position. If he would like to intervene, I invite him to do so.

[The Minister of State, Home Department (Mr Jeremy Browne)]

I am grateful for this unexpected opportunity. I was pointing out that the previous Prime Minister promised the House that he had abolished boom and bust. I therefore do not understand how the hon. Gentleman can be talking about a bust, given that the previous Government eradicated the possibility of Britain ever having a bust again, according to the previous Prime Minister.

[Mark Hendrick]

I thank the Minister for his intervention and he will, of course, note that the last recession in 2008—[Interruption.] Again, he is chuntering from a sedentary position, but I will try to answer his question. He will remember that the economic crisis and recession in 2008 was caused by external shocks, principally starting in the US housing market where financial products were wrapped up in very unsafe debts. That caused financial contagion around the world. The recession was an international one, not a home-grown one, such as the ones under previous Conservative Governments and the coalition Government. That is how the deficit came about. In the Labour Government’s wisdom, they thought it right to bail out the banks. Otherwise, people would have gone to cash tills and no money would have come out, and there would have been no finance to keep the economy moving. They now get the blame for an international problem—the problem was not home grown, unlike the recessions under the previous Conservative Government.

The Labour Government were accused—[Interruption.] The Minister chunters again from a sedentary position, but I will let him intervene.

[Mr Browne]

I am grateful for a second opportunity to intervene. The previous Prime Minister did not say, “I have abolished boom and bust,” adding in brackets, “Unless there are people who lend irresponsible mortgages in the United States of America.” He said, “Labour has abolished boom and bust.” I remember sitting in the House hearing him make that boast the whole time. We now hear that boom and bust is all about international factors. Why does the Labour party not take responsibility for building up the massive deficit when it promised it had abolished boom and bust, no caveats, full stop?