Oral Answers to Questions

Jeremy Corbyn Excerpts

Wednesday 6th July 2016 Commons Chamber

[The Prime Minister]

I absolutely agree with my hon. Friend. Making sure that all our citizens have life chances to make the most of their talents should be the driving mission for the rest of this Parliament. Yesterday at Cabinet we were discussing the importance of boosting the National Citizen Service, which will play a key role in giving young people the confidence and life skills to make the most of the talents that they undoubtedly have.

[Jeremy Corbyn (Islington North) (Lab)]

I think today it would be appropriate if we paused for a moment to think of those people who lost their lives in the bombings in Baghdad and Medina in recent days—the people who have suffered and their families at the end of Ramadan; it must be a terrible experience for them, and I think we should send our sympathies and solidarity to them.

I join the Prime Minister in wishing Wales well, and I will be cheering for Wales along with everybody else. It is quiet, isn’t it. [Interruption.] Ah, there is life after all.

Thirty years ago the Shirebrook colliery employed thousands of workers in skilled, well-paid unionised jobs digging coal. Today thousands of people work on the same site, the vast majority on zero-hours contracts, with no union recognition, where the minimum wage is not even paid. Does Shirebrook not sum up “Agency Britain”?

[The Prime Minister]

First, let me join the Leader of the Opposition in giving our sympathies and condolences to all those who have been the victims of these appalling terrorist attacks, as he says, in Baghdad and Medina, and also in Istanbul.

On the issue of what has happened in our coalfield communities in order to see new jobs and new investment, we have made sure that there is not only a minimum wage, but now a national living wage. The Leader of the Opposition talks about one colliery. I very recently visited the site of the Grimethorpe colliery; there is now one business there—ASOS, I think—employing almost 5,000 people. We are never going to succeed as a country if we try to hold on to the jobs of industries that have become uncompetitive; we have got to invest in the industries of the future, and that is what this Government are doing.

[Jeremy Corbyn]

The problem is that if someone is on a zero-hours contract, the minimum wage does not add up to a living weekly wage; the Prime Minister must understand that. May I take him north-east of Shirebrook to the Lindsey oil refinery? In 2009, hundreds of oil workers there walked out on strike because agency workers from Italy and Portugal were brought in on lower wages to do the same job. Just down the road in Boston, low pay is endemic. The average hourly wage across the whole country is £13.33. In the east midlands, it is £12.26; in Boston, it is £9.13. Is it not time that the Government intervened to step up for those communities that feel they have been left behind in modern Britain?

[The Prime Minister]

We have intervened with the national living wage. We have intervened with more fines against companies which do not pay the minimum wage. We have intervened, and for the first time—this is something Labour never did—we are naming and shaming the companies involved. Those interventions help and can make a difference, but the real intervention that we need is an economy that is growing and encouraging investment, because we want the industries of the future. That is what can be seen in our country and that is why record numbers are in work—2.5 million more people have a job since I become Prime Minister—and why the British economy has been one of the strongest in the G7.

[Jeremy Corbyn]

This Government promised that they would rebalance our economy. They promised a northern powerhouse, yet half of 1% of infrastructure investment is going to the north-east and London is getting 44 times more than that. Is it not time to have a real rebalancing of our economy and to invest in the areas that are losing out so badly?

[The Prime Minister]

The right hon. Gentleman is talking down the performance of parts of our economy that are doing well. The fastest growing part of our economy has been the north-west, not the south-east. Exports are growing faster in the north-east, not in London. There is a huge amount of work to do to make sure that we heal that north-south divide, and for the first time we have a Government with a proper strategy of investing in the infrastructure and the training and the skills that will make a difference. For years, regional policy was about just trying to distribute a few Government jobs outside London. We now have a strategy that is about skills, training and growth, and it is delivering.

[Jeremy Corbyn]

The idea of redistribution is interesting, because investment in London is more than the total of every other English region combined. Does the Prime Minister not think that such issues should be addressed? In March, Government investment was cut in order to meet their fiscal rule. How can the economy be rebalanced when investment is cut and when what little investment remains reinforces the regional imbalances in this country?

[The Prime Minister]

Again, I think the right hon. Gentleman is talking down the north in the questions that he asks. The unemployment rate in the north-west is lower than the rate in London, so I think his figures are wrong.

As for investment, we of course need to have Government investment, and we have that in HS2 and the railways. We have the biggest investment programme since Victorian times and the biggest investment in our roads since the 1970s, but we can invest only if we have a strong, growing economy. We know what Labour’s recipe is: more borrowing, more spending, more debt, and trashing the economy, which is what they did in office. That is when investment collapses.

[Jeremy Corbyn]

The Chancellor finally did this week what the shadow Chancellor asked him to do in the autumn statement and what I asked the Prime Minister to do last week—he abandoned a key part of the fiscal rule. The deficit was supposed to vanish by 2015, but we now know it will not even be gone by 2020. Is it not time to admit that austerity is a failure and that the way forward is to invest in infrastructure, in growth and in jobs?

[The Prime Minister]

What the right hon. Gentleman says is simply not the case. The rules that we set out always had flexibilities in case growth did not turn out the way it did. I would take his advice more seriously if I could think of a single spending reduction that he supported at any time in the past six years. The fact is that this Government and the previous one—the coalition Government—had to take difficult decisions to get our deficit under control. It has gone from the 11% of GDP that we inherited—almost the biggest in the world—to under 3% this year and that is because of difficult decisions. If he can stand up and tell me about one of those decisions that he has supported, I would be interested to hear it.

[Jeremy Corbyn]

Concerns about the fiscal rule and investment are obviously spreading on the Prime Minister’s own Benches. The Secretary of State for Work and Pensions and the Secretary of State for Business, Innovation and Skills have seen the light and now agree with the shadow Chancellor about backing the massive investment programme that we have been advocating. Is it not time that the Prime Minister thanked my hon. Friend the Member for Hayes and Harlington (John McDonnell) for the education work that he has been doing in this House? Will the Prime Minister confirm that the Chancellor’s fiscal rule is dead and that he will invest in the north-east, in Lincolnshire, and in Derbyshire? They are all places that feel, with good reason, that they have been left behind and that investment is going to the wrong places. They are ending up with few jobs on low wages and insecure employment to boot.

[The Prime Minister]

If the investment was going to the wrong places, we would not see 2.5 million more people in work and we would not see a fall in unemployment and a rise in employment in every single region in our country.

The only area where I think the right hon. Gentleman has made a massive contribution is in recent weeks coming up with the biggest job-creation scheme that I have ever seen in my life. Almost everyone on the Benches behind him has had an opportunity to serve on the Opposition Front Bench. Rather like those old job-creation schemes, however, it has been a bit of a revolving door. They get a job—sometimes for only a few hours—and then they go back to the Back Benches, but it is a job-creation scheme none the less and we should thank him for that.