Transport (CSR)
Debate between Jim Fitzpatrick and Stuart Andrew(14Â years ago)
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Jim Fitzpatrick
We do not accept for a second, as was clearly outlined by my right hon. Friend the shadow Chancellor in a speech only last month, that it was a Labour deficit. The deficit was created by an international banking crisis that started in the US. Most other countries copied the UK Government’s solution in restabilising their financial institutions and trying to ensure that the economy was in a position to recover.
We accept that cuts have to be made. We do not demur from that in any way, shape or form. I shall come to that in a second.
Stuart Andrew
Does the hon. Gentleman also accept that the Government he was a member of did not put money aside in the good times so that when the bad times came we were in a better position to deal with that, as other countries such as Australia did?
Jim Fitzpatrick
No, I do not accept that position either. The year before the crisis hit, we were borrowing 2.4% of GDP, compared with the 3.4% that we inherited from the previous Conservative Chancellor, the right hon. and learned Member for Rushcliffe (Mr Clarke). Almost all our borrowing financed capital investment in schools, hospitals, road and rail.
The second myth about our record is that even if the public finances overall were under control, we were spending too much. We do not accept the allegation that what we were spending on schools and hospitals was excessive given the size of our economy. It was in line with other industrialised countries.