Budget Resolutions and Economic Situation

Debate between John Denham and Steve Rotheram

Wednesday 20th March 2013 Commons Chamber

[Mr John Denham (Southampton, Itchen) (Lab)]

It is a great pleasure to follow the Chair of the Treasury Committee.

There must have been at least some Government Members who, however much they wanted to cheer publicly, were wondering privately why no progress has been made in the past three years, and why so much of the promise, as set out by the coalition Government, has failed to achieve what they thought it was going to achieve. I have no doubt that three years ago the Chancellor, the Prime Minister and other members of the Cabinet believed that the measures they were planning were going to work. If we are to understand why we have made no progress, despite the fall in the living standards of an average family of £1,200 a year and the loss of public services, we must look not only at the statistics, but understand why things have gone so badly wrong.

[Steve Rotheram (Liverpool, Walton) (Lab)]

Does my right hon. Friend agree that the Chancellor is becoming the Baldrick of British politics? He thinks he has got a cunning plan, but everybody else can see that it is doomed to failure.

[Mr Denham]

There were certainly points in the Chancellor’s speech when he seemed to be living in a completely different world from the one in which I am living. For example, he made a throwaway remark that reforms to the planning system mean that houses are being built, yet there were fewer housing starts last year than at any time over the past few years. It is nonsense to claim something that is patently untrue, which brings me to my central point about the danger in politics and government of believing one’s own rhetoric.

Port of Southampton

Debate between John Denham and Steve Rotheram

Wednesday 18th January 2012 Westminster Hall

[Mr Denham]

Planning rules may be a problem, but they do not always necessarily need to be exploited to damage an investment.

In 2011, three years after the original application, the MMO issued consent. Two months later, Hutchison commenced judicial review proceedings in the High Court, alleging that the environmental impact assessment was defective. In June 2011, without discussion with ABP, the MMO, having listened to that objection, withdrew its consent. The critical issue is, as I understand it, that the judicial review application by Hutchison did not raise any issues that had not previously been raised in 2010 and that the MMO had every opportunity to consider. What actually happened is that the MMO had the chance to consider those objections and decided not to act on them, or decided that they did not have a substantial basis in fact, and issued the consent, but then, faced with a High Court challenge, changed its mind. It is another case where the MMO’s handing of the matter has badly let down everybody involved in the port of Southampton.

Since then, there has been further delay. ABP responded to further requests for analysis that it said it would deliver by 30 September 2011. Just three days before that date, the MMO asked ABP to produce additional information, which caused a further delay. Then—without going through all the twists and turns—there was a further lengthy delay before the MMO finally commenced the consultation on 11 January 2012.

I have gone over the history not to rake up old issues but to stress, for the benefit of the Minister with responsibility for shipping and ports, that the port of Southampton has been on the receiving end of particularly poor treatment by Government agencies, not just under this Government, but in the past. As a result, this major investment has yet to start. I will not hold the Minister or his predecessor, who will be contributing from the Opposition Front Bench, personally responsible for these errors. We know that these things happen deep in the depths of agencies far away, in normal circumstances, from ministerial decisions, but there are times when Ministers need to act.

I wrote to the Secretary of State for Environment, Food and Rural Affairs about this matter in August and again in September. I have to say that, although I am sure that the letters that I received were legally correct, there was no sense of urgency coming from the Department for Environment, Food and Rural Affairs on how the MMO would handle this matter. I was told that, since June, the MMO had maintained a single point of contact with ABP in Southampton and that, in July, it assigned a case team to the application. However, as I have said, that did not prevent further and later requests from the MMO to ABP for additional analysis and information that further delayed the project.

I wrote to the Prime Minister on 24 November. I hope that I am not unduly pompous as an ex-Minister, but there was a time when former Secretaries of State and Privy Counsellors who wrote to Prime Ministers would get a reply a from the Prime Minister or a Secretary of State. I am afraid that it took two months for the Prime Minister to get a junior Minister in DEFRA to send me back pretty much the same letter that I had got from the Secretary of State. There is no sense that the Downing street machine has grasped that it could play a role in making sure that this happens.

We are now at a critical point. The consultation is under way again—that is important—but the consultation period is six weeks. Objections must then be properly considered, because that is the legal process. The MMO must therefore consider objectively any issue raised so that, should it give approval, its decision cannot be challenged. The potential for delay is significant, and it is essential for the MMO to have sufficient resources and access to sufficient expertise to give the decision proper consideration. That is what I am asking the Minister to take away today and to take to his colleagues in DEFRA. We cannot have a situation in which either the MMO does not have the resources or expertise to consider the consultation responses properly or mistakes are made, thus laying the process open to further legal challenge.

I ask the Minister to consider one other factor. It is not for him or the House to constrain the courts, but in truth the move for judicial review came not from a statutory or voluntary environmental organisation, nor from any group that might be affected by the environmental impact of the port, but from a commercial operator, and it seems pretty clear that the motives were to inflict commercial damage on a rival. That raises a massive challenge to the Government’s plans to encourage infrastructure investment in the UK.

[Steve Rotheram (Liverpool, Walton) (Lab)]

Before my right hon. Friend concludes, I absolutely support the aim expressed in his earlier comments that we should work in the greater interest of the whole UK economy. Will he therefore agree to broker a meeting between the Southampton and Liverpool authorities, so that we can put to bed the animosity between the two and move forward on what is in the interest of both Liverpool and the UK, to grow the economy in Merseyside?

[Mr Denham]

Our two great port cities have a lot in common, in history and in the future, and I hope that Southampton and Liverpool will work together in the future. The Minister’s decision on the issue is imminent, and we will all want to consider it carefully. We are very consistent in Southampton: we are not saying that Liverpool should not have a cruise terminal; we are merely saying that competition should be fair and on the same basis of cruise terminal capacity development. We are not out to say, “You have no right to have cruise ships. You have no right to have this industry,” but the competition must be fair, so if meetings will improve understanding, they would be helpful.

The vast majority of ports in this country are privately operated, but they all depend on either the actions of Government agencies or, sometimes, public investment. The Government’s infrastructure plan, for example, included proposals to improve roads that would help, among other things, to support the port of Felixstowe. We will get into a terrible position, however, if urgent investment in the UK economy routinely becomes the matter of legal challenge by different commercial companies picking up technicalities and details of arguments rather than pursuing the UK national interest. I do not expect the Minister to say much or, probably, if he is prudent, anything at all on that point—I am sure that he will be measured—but Ministers need to have that serious discussion with major companies in this country, to ensure that the interests of UK plc always come first, particularly in such difficult times.