The Economy

Jim Shannon Excerpts

Thursday 22nd March 2018 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

It is always a pleasure to speak in a debate, even if, as often happens, it is at the tail-end. I thank all right hon. and hon. Members for their contributions so far and for their specific interests in the economy. I would like to bring a Northern Ireland perspective to the debate.

The economy is an issue that affects every village, town and city in the United Kingdom of Great Britain and Northern Ireland. We all read the grim, doomsday predictions about Brexit, yet we are still here and we are still standing. We will still be here and we will still be standing after 31 March 2019. I am a proud Brexiteer. Indeed, I think the Democratic Unionist party invented the word, because we were Brexiteers before the word was ever mentioned. We have always had concerns about Europe. It is good that we will now leave, and the sooner the better.

Like all Members, I am always interested to receive the constituency-tailored claimant counts, which indicate how the labour market is performing in our areas. I thank the economics, policy and statistics section of the Library for its sterling work, which it provides to us on request and as a matter of rote. Northern Ireland unemployment is down by 3,400 and now stands at 29,000. There has been a very focused economic strategy for Northern Ireland, which has worked out extremely well. We stand at 3.4% across the whole of Northern Ireland. Some constituencies are below that figure and some may be above it.

The total number of jobseeker’s allowance claimants in my constituency in February 2018 was 1,370, or 3.2% of the economically active population aged 16 to 64—the 207th highest of the 650 UK constituencies—but that is down from 5% when I first came into the House in 2010. The equivalent UK claimant rate was 2.7%. The UK unemployment rate, which includes people not claiming benefits and is estimated from survey data, was 4.3% between November 2017 and January 2018. The number of claimants in Strangford constituency is 115 lower than in February 2017, which perhaps indicates that we are moving in the right direction. There were 290 claimants aged 18 to 24 in February 2018, which is 75 lower than February 2017. That, to me, is an indicator that we are progressing. Indeed, as a party colleague highlighted, the latest labour market statistics show Northern Ireland moving in the right economic direction.

It is important to say that we have not had a working, functioning Northern Ireland Assembly for 14 months. In that time, we have experienced some of the greatest growth in Northern Ireland for employment, job opportunities and the economy as a whole. Those are good things, even though we have not had a Northern Ireland Assembly to drive it. Significant employment opportunities have taken place because of the good work of, and the foundations laid down by, the Northern Ireland Assembly, when it was working, and the Department for Enterprise, Trade and Industry. One of my DUP colleagues, in the Belfast Telegraph, said:

“Boosting the economy through private sector growth has been a key DUP priority over the last decade. It is very welcome that private sector jobs are now at their highest level since records began in 1974. We want to see that grow further and significant funding secured through the Confidence and Supply agreement to deliver on key infrastructure projects such as the York Street interchange and the superfast broadband are the foundation of future growth.”

Some Members have referred to the £1.4 billion that the DUP secured with the Conservatives as part of the confidence and supply agreement. We would be happy to assist those who are interested in how to negotiate a good deal.

[Kelvin Hopkins]

I am pleased that Northern Ireland is doing relatively well, in spite of difficulties. Does the hon. Gentleman not accept that a factor in manufacturing doing relatively well in Northern Ireland, and in the rest of the United Kingdom, is the depreciation of the pound following the referendum, and that keeping the pound at a sensible level would be better for Northern Ireland’s future and for the United Kingdom’s future?

[Jim Shannon]

It would be remiss of me to say other than that the value of the pound has enabled our exports to grow and our manufacturing base to maintain its position. The hon. Gentleman is absolutely right.

The DUP’s confidence and supply agreement with the Conservative party has brought in money for everyone in Northern Ireland, regardless of whether they are Unionist, nationalist or anything else. Everybody gains from that agreement.

The House has seen progress on business rates and the small business rates relief scheme. I am very pleased that the Government have continued to ensure that that happens, because it will definitely bring benefit to all the high streets across the United Kingdom. Rates relief has brought opportunities and retained employment in shops in places in my constituency such as Newtownards, Comber and Ballynahinch. Rates relief ensures that we do not have empty shops. Those involved in the retail business say that we have some of the best shopping opportunities in the whole of Northern Ireland.

We have pursued the issues of air passenger duty and tourism VAT, negotiating and consulting with the Conservatives on how the confidence and supply agreement can benefit us, as well as the whole of the United Kingdom. There are advantages for others across the United Kingdom in a reduction to air passenger duty and tourism VAT. We need to be on equal terms with the Republic of Ireland to be able to grow our tourism sector. The DUP is continuing to work on issues that affect the local economy in Northern Ireland, as well as the whole of the UK economy. We are pleased to be part of the economic success story we have in the whole of the United Kingdom of Great Britain and Northern Ireland.

As the briefing paper succinctly put it, in terms we can understand, in 2016-17 the Government borrowed £46 billion to make up the difference between their spending and the income raised from taxes and other sources. Since 2009-10, the UK’s borrowing—often referred to as the deficit—has fallen by 70%, which again is good news. Borrowing is now at a similar level to that before the 2007-08 financial crisis, and the OBR forecasts that it will fall each year to just over £1 billion in 2022-23, which is equivalent to around 1% of GDP. If anyone thinks that this is not good news, they need to take another look at what it is saying. In laymen’s terms, we still have a massive debt—there is no doubt about that—but, in fairness to the Conservative party, it is trying hard to reduce the deficit, and if we continue along the lines we are on, it will be to the benefit of everyone in the Chamber and every one of our constituents.

[Alex Chalk (Cheltenham) (Con)]

Does the hon. Gentleman agree that it will be to the benefit not just of this generation but of the next generation, given that we currently spend on debt interest alone a sum greater than the entire NHS wage bill? We have to get that down so that future generations can have the public services they deserve.

[Jim Shannon]

The hon. Gentleman is right. It is not just for us as MPs and our constituents; it is for our children and our grandchildren. We are building a base here, as we have done in Northern Ireland through the Assembly, for a stronger economy in years to come. It is important that we move towards that.

I agree with the Government’s goal of reducing the deficit yearly, but while we must aim to do this, things arise outside of our control, and we must always be able to access spending power to meet those needs. We seem to be stabilising, and yet I am aware of the adverse effect of the roll-out of universal credit. I must put on the record my concern about its effect on the disabled and vulnerable. Opposition Members who have sat with me through many debates will understand my concern.

I am also very aware of the needs of the NHS, which the hon. Member for Cheltenham (Alex Chalk) referred to in his intervention, and the importance of providing advantages and opportunities to the NHS when it comes to funding. In the words of an elderly constituent of mine, the NHS “needs to rubbed out and drawn again, as our highly trained NHS staff are at the end of themselves and living on their nerves with no breaks and crisis management from one hour to the next”. That is why I welcome the Government’s commitment to a 6.5% wage increase for NHS staff over three years. That is good news, and we should all welcome it, because it is a step in the right direction. The DUP asked for that in our negotiations and discussions with the Conservative party, and the Conservative party has accepted it.

Fishing, which has come up on both sides of the House, is hugely important to me and my constituency, particularly in the village of Portavogie. Since we have an absentee MP for South Down, I should add that it is also important to those from Ardglass and Kilkeel. It is very important that we have a good fishing industry and sector. We are sick and tired of EU bureaucracy and red tape, of quota restrictions and days-at-sea restrictions, of boat numbers reducing in my village of Portavogie from 120 to about 75—the reductions are similar in Kilkeel and Ardglass.

The fishing sector is under pressure, but with Brexit we will have what the hon. Member for Angus (Kirstene Hair) said: a stronger fishing sector and industry, more employment, more opportunities and more jobs. I, like others, would like to see landings landing on UK soil. That is important. The voisinage agreement is a legal agreement under which we will take back some of the waters that are ours but which under another legal agreement the Republic of Ireland looks after. That will happen, and we will have more control over our own waters. So Brexit brings good news for the fishing sector.

I say the same thing to the Minister today that I said to the Secretary of State for Environment, Food and Rural Affairs the other day. I want us to make sure that in 2020 we are out. It is the responsibility of Ministers to make sure that happens. The Secretary of State gave me that commitment, and other commitments have been given as well. Those who represent fishing villages understand our concern and angst.

My constituency has seen enormous growth in the agri-foods sector. I think of businesses such as Willowbrook Foods, Mash Direct and Pritchitts—also known as Lakeland Dairies. The latter has three factories, two in the Republic and one in Northern Ireland, and if ever we needed an example of why we need to transition to a soft border, that company is it. Its process involves milk crossing the border three times: first, it comes across in fluid form; then it goes back in powder form; and then it comes back again to Newtownards, where it is packaged and processed, and sold across the world. Rich Sauces is another agri-food business in my constituency that is doing extremely well, and we must remember that this is about not just the guys in the factories doing the production and manufacturing, but the farmers supplying the milk, and those providing arable goods for vegetable firms. Those are the success stories, and we need to reach a satisfactory arrangement for them.

We have also seen new markets created. Lakeland Dairies, for example, is marketing a new milk powder in China. The Minister has been involved with that. He has been helping us to get through the red tape we sometimes have so that we can secure that opportunity. Pharmaceuticals, insurance and light engineering are other growth industries in my constituency, like others. We have many small companies that started off with perhaps half a dozen employees and then grew. Patton’s is one that comes to mind right away. It started off with a van and three people; it now has a dozen vans and a workforce of 65.

Good things are happening, so let us talk about them. I do not mean to be disrespectful to anyone—that is not my nature—but if people talk things down enough, they will be down. We must talk them up. Let us talk up the good things—we should not ignore the negatives—and be positive. Positivity is what we want—it is certainly what I want.

I am aware that even small tax rises—for example, the 4.5% rise in rates for Northern Ireland, coupled with the almost 3% local rise in my constituency, results in a 7.5% rate increase for families slightly above the threshold for help through tax credits—can have an impact on people’s quality of life. We tell parents not to feed their children crisps as a lunchtime snack. Crisps cost 10p, but we tell them to give the children an orange, which costs 20p, so that is financially illogical. We tell parents to take their children to after-school clubs to help their social development, but they have to fund that themselves, because cuts have stopped Sure Start and other places from funding classes for children.

Members have referred to food banks. People are always being negative about food banks, but we should be positive. The Trussell Trust food bank in Newtownards in my constituency—we were the first to have one in Northern Ireland—has brought the churches and many individuals together. Every one of them is concerned for those who have nothing. Is it not a good thing when people come together to do something really good, substantial and positive to bring about change?

[David Linden]

The hon. Gentleman knows that I have huge respect for him and count him as an hon. Friend, but the reality is that the top three reasons why people go to food banks are changes to benefits, low incomes, and insecure employment. I am sure he will put that on record. We do not seek to use this as a political football, but the statistics back up my point.

[Jim Shannon]

The hon. Gentleman beat me to it—I was going to come to that point. Why do people go to food banks? I sign their chits every week, so I know why: because of benefits and delays in receiving them. We have to sharpen our system up. When people are living under a far lower threshold than anyone in this House and many people outside it, we recognise that there are problems. Food banks have brought people together with the right motivation, but they are here for a reason. The hon. Gentleman is right about why that is: because of benefit changes, benefit delays, and marital and relationship break-ups; and because people have lost their jobs. It is good to have the food banks, but they are there for a purpose. I am very pleased to commend the Trussell Trust and the food bank that works through the Thriving Life church in Newtownards in my constituency on what they do. Their volunteers do marvellous work. They are people with passion, belief and concern, as we all have in this House and hopefully outside it as well.

We ask women to get into work, but not enough funded pre-nursery places are available to help them with childcare. We tell parents that they do not get pre-nursery places because they do not meet the benefits threshold. We tell them that they must spend time reading with their children and doing imaginative play after they have had to work all day, although they pay out most of their money on getting an acceptable level of childcare. We say that they should ensure that they take time off for their own mental health.

The Government have tried to address the issue of childcare, and we tried to do so in the Northern Ireland Assembly. However, there is still some way to go on providing childcare, and I say that respectfully. The Minister might want to come back on that. Other Members feel similarly to me and know where the voids are. For some reason, there is certainly a void in childcare. If we want a woman to work, we have to make sure that she has somewhere to take her children that does not cost her the earth. There is no sense in people working if every pound they get goes on paying for childcare. People want to work to keep them sane, but they also want to be financially better off. I make those points with respect to the Minister.

We encourage family units to provide childcare while, at the same, putting the retirement age up by six years. Again, I feel greatly aggrieved that women have to work beyond their time. Many of us in this House and my party have had discussions with the Government about the WASPI women. We all know what the issues are—those are very clear—and what has happened niggles me and my constituents. Those people have to continue to work, and their children must pay someone to mind their children. It is an advantage when someone has parents, grandparents, aunties and uncles who can do the childcare for them. However, if those family members have to work for another six years, that opportunity is never there.

[Alison Thewliss]

Does not the hon. Gentleman agree that often these women worked while their children were small and looked forward to the treat of spending quality time with their grandchildren?

[Jim Shannon]

I absolutely agree. The hon. Lady and I have discussed these things on many occasions. We have a very similar opinion.

I feel that the failure is one that society and perhaps the Government need to address. It has accumulated over a number of years. The economy is essential, as is reducing the deficit, and I support sustainable borrowing, but it is also essential that we provide the support and level of care to make life bearable for our constituents.

Interest rates were referred to earlier. It is absolutely critical that they do not increase so that we keep the economy stabilised, provide opportunities and make sure that we put money in the pockets of our constituents. That will also keep the economy going in the direction that we want so that we make sure that we create more jobs and employment.

I am aware that we bit off too much before the financial crisis, but we cannot compound the problem by putting constituents in debt, or close to debt, as they pay the continual minimal rises that we place on their shoulders. We must do as much as we can to economise while not asking too much from people who are squeezed to the limit. We are moving forward and reducing our nation’s debt, but that must not be at the expense of our constituents. I feel that we face that danger at present, and I ask the Minister to take that into account in his response.

[The Leader of the House of Commons (Andrea Leadsom)]

On a point of order, Madam Deputy Speaker. I have listened to representations following my business statement. For the benefit of the House, I can say that Monday’s general debate will now be on national security and Russia.