National Assembly for Wales
Jessica Morden Excerpts(11 years, 10 months ago)
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Geraint Davies (Swansea West) (Lab/Co-op)
It is a great pleasure to rise at this slightly later than anticipated hour to debate the Green Paper on the future electoral arrangements of the National Assembly for Wales.
I do so against the background of the Government’s wanting to reduce the number of MPs in Wales from 40 to 30 as part of a broader remapping of boundaries which has, I am delighted to say, failed in its attempt to reshape the political map, particularly in Wales but across the country, for party political gain. One of the key problems with that proposal is that it would break the coterminosity in Wales between MPs and Assembly Members. In the knowledge that they were doing that, the Government produced a Green Paper that said, in effect, “Don’t worry about it—we’ll reintroduce the coterminosity as a sort of Trojan horse to bring about a 30:30 arrangement, reducing the number of democratically elected AMs, increasing the list numbers, and changing the prospective balance of power in the Assembly.” That was done without any consultation or collaboration with the Assembly itself—a complete disgrace.
Jessica Morden (Newport East) (Lab)
I congratulate my hon. Friend on securing this debate. Does he think that given the Prime Minister’s assurance to the First Minister that any changes in Wales should have the consent of the Welsh people, it was pretty outrageous that he just went ahead regardless, which does not say much for any kind of respect agenda?
Geraint Davies
I will be mild in my criticism, but I thought it was completely disgraceful. It showed a great lack of respect for the blossoming new democracy that we have in the nation of Wales, with a Welsh Government doing very good things and the road of devolution moving forwards. Where important decisions can be made locally by the people they affect most, that is what should happen. It was very unfortunate, to put it mildly, that the Prime Minister showed such disrespect to the leader of the Welsh Assembly Government.
The other propositions in the Green Paper include the idea of a five-year cycle for the National Assembly for Wales detached by a year from Westminster’s five-year cycle. That might be quite sensible on the grounds that it would be unfortunate to have both elections on the same day because there could be confusion in Wales as a result of the media carrying more about UK policies of the Labour party and other parties that may differ from those in Wales. It is important in the interests of effective democracy, and effectively communicating democracy, that the elections do not occur in the same year, and I am therefore minded to support the idea of moving to a five-year cycle displaced by a year.
Stephen Crabb
We will not take any lessons from the Labour party on spending money. The hon. Gentleman was a distinguished Minister in the previous Government and perhaps bears more responsibility than most, in terms of collective responsibility, for some of the decisions taken by that Government with such disastrous financial consequences for this country. We will take no lessons from the Labour party on the good use of resources.
I think that the hon. Member for Swansea West and his colleagues will come to regret the vote that they took last week, which was, as I have said, against fairer-sized parliamentary constituencies and cutting the cost of politics. Voters want more out of democratic system; they want more value for money and to know that their votes count. The hon. Gentleman’s constituency has an electorate of 60,000 or 61,000, but some of his colleagues have 94,000, 95,000 or 96,000 constituents. He should be able to see as well as anyone the inbuilt unfairness in the current system of parliamentary boundaries.
Jessica Morden
Has the Minister made any assessment of how much the abortive boundaries review in Wales cost, as well as the mess-up over the ballot papers, the police and crime commissioner elections and the Green Paper process? How much has that all cost Wales in total?
Stephen Crabb
The hon. Lady asks a direct question about the cost of the Green Paper consultation and I will give her a direct answer. The consultation on the Green Paper cost just over £3,000. If she or any of her colleagues are tempted to say, “Isn’t that now a waste of money because we are not proceeding with changes to Assembly constituency boundaries?” I remind them that the Green Paper was about a lot more than the shape of constituency boundaries for Assembly elections. Important parts of the consultation still need to be considered, and I will come to that in a moment.
Oral Answers to Questions
Jessica Morden Excerpts(12 years, 5 months ago)
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Jessica Morden (Newport East) (Lab)
4. What progress he has made on his consultation on regional pay for public sector workers; and if he will make a statement.
The Economic Secretary to the Treasury (Miss Chloe Smith)
The independent pay review bodies are considering how public sector pay can be made more responsive to local labour markets, and will report from July. Nothing has been decided, and no changes will be made unless there is strong supporting evidence and a rational case for proceeding.
Jessica Morden
The Tory finance spokesperson in the Welsh Assembly said that introducing regional pay could disadvantage thousands of public sector workers, and that
“we are making it absolutely clear that we are against”
it. Does the Minister agree?
Miss Smith
As I have just set out, this is a question at present for the independent pay review bodies, which will report back in July. There is an argument that more local, market-facing pay in the public sector has the potential to support more for the same investment, and to help local businesses become more competitive.
Financial Services Bill
Jessica Morden Excerpts(12 years, 7 months ago)
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Katy Clark
It is a pleasure to speak to new clause 12, which I tabled along with many other hon. Members. It would require the Financial Policy Committee to
“carry out and publish a review of the operation of consumer prepayment schemes to consider whether existing protection for consumers is sufficient.”
It would require the report to include
“an analysis of whether consumers of prepayment schemes should be made preferential creditors for the purposes of the distribution of the realised assets…in the event of insolvency.”
I come to this issue as a result of the experiences of my constituents when the Farepak Christmas savings club collapsed on 13 October 2006. Many hon. Members will be well aware of the background to the Farepak issue, which has been raised in this Chamber on a number of occasions. More than five years after the collapse of the company, almost none of the 120,000 people who lost out have received a penny of their money back. Those 120,000 savers lost about £38 million. Some money was distributed as a result of a response fund, which was set up in the lead-up to Christmas 2006, but the people who lost out have not received any money from those who are dealing with Farepak’s assets.
In my constituency, hundreds of families were affected. I pay tribute to my constituents Louise McDaid and Jean McLardy, who, along with many others, set up the Farepak victims committee, which continues to campaign for justice for those who lost out as a result of Farepak’s collapse.
Jessica Morden (Newport East) (Lab)
Will my hon. Friend add to that list my constituent Deborah Harvey, who was a Farepak agent and who has campaigned tirelessly with the Farepak victims committee? The committee recently contacted a raft of companies that run prepayment schemes to seek assurances about the future protection of people’s money, but it has not had a welcoming response. Does my hon. Friend agree that we owe it to Farepak’s victims to ensure that this sort of thing never happens again and that such people are protected in legislation?
Oral Answers to Questions
Jessica Morden Excerpts(12 years, 9 months ago)
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Jessica Morden (Newport East) (Lab)
1. What assessment he has made of the effect on families of the changes in eligibility rules for working tax credit to be introduced in April 2012.
Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)
4. What assessment he has made of the effect on the economy of changes to the working tax credit to be introduced in April 2012.
The Economic Secretary to the Treasury (Miss Chloe Smith)
The Government are reforming tax credits to ensure that support is targeted on those most in need and costs are controlled. The change to the working hours requirement for couples with children makes the system fairer by reducing the disparity between lone parents and couples. Lone parents have to work 16 hours a week to be eligible for tax credits, so it is right that couples should have to work more hours between them.
Jessica Morden
Some 730 families in Newport will be hit by the changes to tax credits, which means that they will either have to work more hours or face losing up to £3,800 a year. The Government have so far demonstrated no understanding of the difficulties faced by families in this position trying to find extra work. Will the Minister tell my constituents exactly where these mythical hours will come from?
Miss Smith
I shall be precise. I can tell the hon. Lady that the number of vacancies was up by 11,000 in the last three months to January 2012, and 1.07 million people moved into employment in the last quarter.
The Economy
Jessica Morden Excerpts(13 years ago)
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Stephen Timms (East Ham) (Lab)
The number of young people out of work has topped 1 million for the first time. If nothing else, that must be a wake-up call for urgent action on the economy. Last June, the Prime Minister told the House that cutting the deficit faster would revive private sector confidence. That was the rationale for the strategy that was set out to us. There would be pain but it would be worth it. Private sector investment and jobs would surge. The increase in confidence would mean that growth in the number of private sector jobs would more than match public sector job cuts. We were told that employment would rise every year. In fact, in the past year, employment has fallen by more than 100,000. One thing we can say for sure, with no fear of contradiction, is that that key assumption about confidence underpinning the Government’s entire strategy was mistaken.
The Institute of Chartered Accountants’ latest business confidence monitor is headlined “UK business confidence has collapsed”. That is its assessment of confidence. The latest of its regular surveys states:
“Confidence has declined across all sectors and all regions.”
There will be different views across the Chamber about the reasons that the Prime Minister’s hope has proved ill-founded. The Chancellor took the view and his party seems to take the view that all the problems before the election were the fault of the UK Government and that all the problems since the election have been the fault of someone else. Whatever view we take of the reasons that the Prime Minister’s expectation was ill-founded, the fact that it was ill-founded is, after the autumn statement, not in dispute.
The Prime Minister told us that unemployment would not be too much of a problem because private sector job creation would exceed public sector job cuts. In fact, public sector job cuts are exceeding new private sector jobs on a ratio of about 2:1. The Office for Budget Responsibility has told us that more than 700,000 public sector jobs will be lost. The cuts are going too far and too fast. Young people and women are bearing the brunt. Moreover, the plan is not delivering, as far as we can see, the central goal of swiftly eliminating the deficit. That is now clear. Borrowing will be higher than it was under the previous Government’s plans.
When a plan goes so badly wrong and when the expectations underpinning it are shown to have been so mistaken, surely it is time to revisit the plan. Surely, when things have turned out so different from what the Government told us would happen, the case for a fundamental rethink is extremely strong.
Jessica Morden (Newport East) (Lab)
Last week, Tata steel in my constituency mothballed a hot strip mill because of low demand for steel, which means that in the past month 185 job losses have been announced at Llanwern. Is that not further evidence that the Government’s economic plan is not working. We have heard nothing today that will do anything to save those much-needed steel jobs?
Stephen Timms
Unfortunately, nothing at all. This lack of confidence is one of the problems in the economy.
Another problem is that the Chancellor cannot change course because he has boxed himself in and cannot budge for fear of admitting that his judgment was wrong. That problem was well expressed by Martin Wolf, the chief economics commentator for the Financial Times—the Chancellor quoted the Financial Times in his support—who warned after the autumn statement last week of the danger of a lost decade. He wrote that the Chancellor
“is wrong to ignore his errors. He is trapped by his own rigid fiscal framework. He might indeed shatter confidence if he were more flexible. But that is partly his own fault.”
It seems that we will all be trapped because the Chancellor cannot acknowledge that he got the fundamental judgment wrong at the start.
We need to build growth in the economy and to create jobs for young people. That is the rationale for the five-point plan for jobs and growth advanced by the Labour party. We should repeat the tax on bankers’ bonuses to bring in another £2 billion and we should use that to fund 100,000 jobs for young people, getting them off the dole and building on the future jobs fund introduced before the election. I welcome the announcement of the young people’s contract—a watered-down version of the future jobs fund—and I look forward to seeing the details but it simply underlines what a misjudgment it was to shut down the future jobs fund in the first place.
We should introduce another temporary cut in VAT to rebuild momentum in the economy—that is what the temporary cut did last time—and we should introduce further investment in infrastructure, including in schools and other areas. We should also cut the increase in university fees. At a time when youth unemployment is at such a catastrophic level, the last thing that we should be doing is forcing young people out of education—we should be encouraging them to stay in. Yet, I am hearing reports from colleges that significant numbers of young people have concluded that, with fees at the level announced by the coalition, they have no chance of ever making it to university and that therefore they should not even bother staying on to study, including for A-levels.
We should also listen to the Federation of Small Businesses and give small firms hiring new staff a break from national insurance to encourage them to do so. The Government should heed that call. We need a strategy for growth but as yet we have no sign of one. I am pleased that the Government have retained the previous Government’s proposals for a patent box to improve the research-and-development environment. That was the right decision and it allowed the Prime Minister yesterday to make his welcome announcement about support for life sciences.
In closing, I want to draw attention to one seemingly minor measure announced by the previous Government. Its significance is much greater than the initial view suggested. I am referring to the tax break from computer games announced in the last Budget by my right hon. Friend the Member for Edinburgh South West (Mr Darling). We have some of the most creative computer design businesses and talent in the world and we should make better use of it.
Autumn Statement
Jessica Morden Excerpts(13 years ago)
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Mr Osborne
We hope to get it up and running in the next couple of months. We must clear the state aid hurdles—I am afraid that that is a fact of life—but we have been making good progress, and we hope that following the European Investment Bank scheme that already exists will make the process relatively simple. We are open to other credit-easing programmes such as partnership schemes, which some people have suggested, and we want to work with the Federation of Small Businesses and others to ensure that small businesses receive their money in the form of reduced rates for those who participate in the scheme.
I said explicitly in my statement that we would not make the best the enemy of the good. We must get the scheme up and running as quickly as possible in order to help companies in Gloucester and elsewhere that have found it difficult to gain access to finance over the last three or four years.
Jessica Morden (Newport East) (Lab)
The Chancellor referred earlier to the Severn bridge tolls. Can he be more specific about what he can do to help, in view of the assistance that he has given to the Humber bridge?
Mr Osborne
The issue of the Severn bridge tolls is different. There will come a point later in the decade when the question arises of what we do with the toll income and how it is allocated between England and Wales. I want to establish, in discussion with the Welsh Government in Cardiff, whether we can arrange to use the money from the tolls to support the M4 corridor in south Wales.
Oral Answers to Questions
Jessica Morden Excerpts(14 years, 5 months ago)
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Justine Greening
I do not think the hon. Gentleman is right about that at all. The OBR clearly set out that it expects our economy to grow over the coming years. It expects unemployment to fall and employment to rise, and the hon. Gentleman should welcome that.
Jessica Morden (Newport East) (Lab)
T1. If he will make a statement on his departmental responsibilities.
The Chief Secretary to the Treasury (Danny Alexander)
The core purpose of the Treasury is to ensure the stability of the economy, promote growth and employment, reform the banking system and manage the public finances so that Britain lives within her means.
Jessica Morden
Many small charities are extremely worried about the rise in VAT. Does the Minister think it is fair that charities be hit in this way?
The Economic Secretary to the Treasury (Justine Greening)
The hon. Lady is right to raise the issue of charities; in fact it is an issue in which we have taken a great interest coming into government. I hope she will welcome the fact that we are continuing with the gift aid forum, which brings together a range of people interested in charities and charity tax to look at how we can stimulate gift aid and make it more effective over the coming years. The hon. Lady is also right about the impact of VAT on charities, but we have to sort out the economic mess the last Government left us, and the best way to sustain the funding of charities is to make sure people have jobs and money in their pockets that they feel they can donate.