Finance (No. 3) Bill

Debate between Jim McGovern and Alec Shelbrooke

Tuesday 26th April 2011 Commons Chamber

[Alec Shelbrooke]

My hon. Friend pre-empts me, because I was going to say that the Swedes put aside 2% of gross domestic product during the good times and the Australians paid off their national debt in the last quarter, leaving them well placed to deal with these issues.

People often say that the new deal in America, with its Keynesian attitude, dug the American economy out of its hole. No, it did not—that was achieved by the second world war and the fact that America was able to lend money and sell armaments to the rest of the world while not having its mainland invaded. That put the Americans in the economic driving seat, from which they have never looked back.

I want to talk about fuel prices. The Opposition were going to add another 5p to the price of petrol. I know that it is difficult to prove a negative. If we say to people, “We’ve cut 6p off a litre of petrol,” they will say, “No, you haven’t—you only cut a penny,” because if they are not paying that 5p it is difficult to prove it to them. However, at least we have done something to help, and we have to pay for that somehow. We cannot just go on printing money and saying, “It doesn’t matter. It’s the Government’s money—we’ll supply it, don’t worry about it,” because that completely misses the point and gets us into these problems. Under the previous Government, fuel prices rocketed because of taxation; under this Government, fuel prices have gone up because of the oil price, over which we do not have influence. If we are to believe what is said, we may have reached peak oil. We could have a discussion for three hours about whether that is so, and people would say, “Well, more oil comes online because at the current high oil price it becomes more economical and there is plenty of oil out there—it isn’t going to run out.” However, the key to that argument is that it relates to the current oil price. Let us not forget that the oil price is controlled by the oil traders and speculators, and if they believe that we are at peak oil, that oil price is here to stay. We have tried to cushion the impact and help hard-working families, and it is pretty cheap for Labour Members to snipe at that.

Drawing on the comments by the shadow Chief Secretary to the Treasury, at the same time as the argument that we should try to reduce our carbon emissions, we hear that we should not build any nuclear stations or put any subsidies into moving forward with nuclear power. We have seen an absolutely terrible and disastrous event in Japan—something that shocked the world and daily covers the newspapers, and still gets talked about constantly, with Russia now making criticisms. As far as I am aware, that nuclear reactor has not killed anyone. It is funny how quickly people completely forget about the 20,000 people who died in the tsunami: the real human cost. But no, they focus on a nuclear power station hit by the third biggest release of energy the world has ever seen and a 30-foot tsunami doing 60 mph, and everybody says that that is why we should not have nuclear power. Nobody adds that more than 20,000 people have been killed by this natural disaster. Let us get some perspective. We know that nuclear power may not be the best way forward, but it is the best way forward at this moment. Until we develop the technology so that we can get to nuclear fusion and perhaps some better green technologies, these are our options and this is what we face. We cannot keep saying no to everything.

The Opposition always want it both ways. They want to cut the fuel price, but they do not want to tax oil companies. They want the banks to lend more, but they want to tax them so much that they would leave the country. They want to reduce carbon and to have secure energy, but they do not want to go nuclear. They are a joke. Their speeches vary from Member to Member. Some could be on this side of the House, some could be old Labour and some could be new Labour. I do not know what their policy is, but the blank sheet of paper is certainly something that they are all sticking to vigorously. We have seen very little in the local election campaign except for criticism of the Government.

[Jim McGovern (Dundee West) (Lab)]

The hon. Gentleman speaks about nuclear energy and fossil fuel energy. Does he have an opinion on the Scottish National party’s view on nuclear energy?