Cost of Living Debate

Full Debate: Read Full Debate

Cost of Living

Jim Shannon Excerpts
Tuesday 14th May 2013

(11 years, 1 month ago)

Commons Chamber
Read Full debate Read Hansard Text
Ian Paisley Portrait Ian Paisley
- Hansard - - - Excerpts

Like the hon. Gentleman, who is also a great Unionist committed to the Union, I believe that the same benefits should flow whether in the north of England or the northern part of Ulster. [Interruption.] That includes Donegal; we will get it back into the Union at some point soon.

Families with a person who suffers from cancer may face difficulties. Macmillan Cancer Support recently produced an interesting report showing the significant impact on the cost of living of cancer sufferers, which could amount to as much as a year’s mortgage payments. The Government should focus their attention on what additional support they can introduce to assist those people.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
- Hansard - -

Will my hon. Friend give way?

Ian Paisley Portrait Ian Paisley
- Hansard - - - Excerpts

Not at the moment, but I will shortly.

A disaster is coming to our farming community that will dramatically affect the cost of living through the rising cost of food. We have had one of the harshest winters ever. That is affecting, and will affect, the price of foodstuffs to feed our cattle and our sheep in the countryside. If next winter is equally harsh, I predict that this time next year the cost of food could be as much as double what it is this year. A bale of hay to feed cattle can cost as much as £60 in Northern Ireland—almost triple last year’s price. That will have a knock-on effect on the cost of living of ordinary households up and down the United Kingdom because it will affect how much a person can purchase to feed their family. The Government had better be warned about this now so that they can try to address the needs of the farming community across this country.

The impact of the cost of living in our rural communities is leading to an increase in suicide. For example, there was a very saddening episode last week in the Republic of Ireland, in County Monaghan, where a farmer shot 40 of his livestock because he could no longer afford to feed them, and then turned the gun on himself. This is a diabolical situation that is starting to affect our economy and will see the price of food increase.

I want to deal briefly with fags. Over the past few days people have talked about the impact of not having something in the Queen’s Speech. I want to commend the Government for taking a stand by not including measures on plain packaging, because that would have driven people out of employment, and not only in Northern Ireland; it would have affected shopkeepers up and down the United Kingdom and destroyed people’s opportunity to make a living.

In addition, it is a giant con trick. I am a non-smoker and I have four children who I never want to see smoking. If I thought for one moment that plain packaging would stop them smoking, I would have been in favour of it years ago. Indeed, the Labour party had the chance to introduce this measure in 2008 and did not do so. I am glad that 18 members of the Labour party signed my open letter to Her Majesty’s Government to support my campaign to stop plain packaging because of the impact it would have on smuggling, on counterfeit trade, and on all sorts of other aspects that would not affect the health of the nation in any way.

--- Later in debate ---
Mike Crockart Portrait Mike Crockart (Edinburgh West) (LD)
- Hansard - - - Excerpts

It is a great pleasure to speak in support of the Queen’s Speech.

The Government recognise that household budgets are under extreme pressure. I am happy that we are taking action to support households with the cost of living. In the little time available to me, I will concentrate on one aspect of those costs: the cost of energy. The consumer group Which? recently found that 82% of consumers list the cost of energy and fuel as a top financial concern. It matters not just to fuel-poor households, but is a key issue for millions throughout the UK, including many small businesses. That is why I am glad that the Energy Bill will introduce radical new measures to make energy tariffs fairer and to make energy suppliers more accountable to consumers by strengthening Ofgem’s role.

By giving statutory backing to Ofgem’s retail market review proposals, we will ensure that customers receive the best deal on their energy tariffs, which will mean a radical reduction in the number of energy tariffs that are offered to consumers. That will be a huge improvement on the old regime, in which the hundreds of complex tariffs have led to confusion and a complete lack of transparency. Under the reforms, energy companies will be legally obligated to place households on the cheapest tariff for their individual payment and tariff preferences, and to provide households with relevant personal information.

Jim Shannon Portrait Jim Shannon
- Hansard - -

Does the hon. Gentleman feel that competition provides the motivation to reduce prices? In Northern Ireland, where there is not the same competition, energy costs for industries and businesses are 30% or 40% higher. That is an example of where competition could bring prices down.

--- Later in debate ---
Clive Efford Portrait Clive Efford (Eltham) (Lab)
- Hansard - - - Excerpts

This Queen’s Speech has generated more debate about what is not in it than about what is, and it has highlighted the Government’s dysfunctionality. As we heard from my right hon. Friend the Member for Don Valley (Caroline Flint), the Prime Minister made a big announcement about putting people on the lowest energy tariff, a promise that has proved completely worthless. There is nothing effective in the Queen’s Speech to protect consumers from the cost of energy bills.

The Institute for Fiscal Studies published a report just before the Queen’s Speech showing that all the advances that had been made in tackling child poverty would be wiped out by the benefit changes that the Government are introducing. There was nothing to deal with that in the Queen’s Speech. Yet at the same time, there is a millionaires’ tax increase. Those millionaires share £27.4 billion of income, but they apparently deserve a tax cut while child poverty increases.

There are no coherent proposals for growth or job creation.

Jim Shannon Portrait Jim Shannon
- Hansard - -

Is the hon. Gentleman alarmed by figures that seem to indicate that because of the changes to benefits, some 200,000 children will be added to the list of those in child poverty?

Clive Efford Portrait Clive Efford
- Hansard - - - Excerpts

I think the IFS puts the increase at 1 million children, but I take the hon. Gentleman’s point.

There are no proposals in the Queen’s Speech to stimulate the construction industry and build social housing. It is worth remembering that the Government inherited the biggest council house building programme for more than two decades, and then scrapped it as part of their austerity measures. In London, there were 11,328 social rented housing starts in 2010-11. That figure plummeted to 1,672 in 2012-13. That is a time bomb hitting young people in London, and the problem goes right up the social scale. It does not just affect people on low incomes who are in desperate housing need. People on above-average incomes who have children cannot afford to rent or buy in the private sector in London. That time bomb will not go away, and the Queen’s Speech does nothing to address it.