European Union (Withdrawal) Act
Debate between John McDonnell and Lord Clarke of Nottingham(5 years, 11 months ago)
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John McDonnell
Let me press on now.
My fourth and final point is the vulnerability of our economy to a bad Brexit, and, indeed, the vulnerability of so many of our people—the people we represent. The Prime Minister’s deal does not give the certainty our country needs. Even the trickle of muted support from businesses when the deal was first done has now been replaced by a deafening silence. That is because businesses and trade unions alike now understand that under the Prime Minister’s deal we are facing, in 2020, more uncertainty as this Government then decide whether to extend the transition or fall into an unlimited backstop.
If a bad Brexit is forced upon our country, and the economy and jobs are not protected, many of our people who have suffered from eight years of austerity will suffer even more. Indeed, many of us believe that it has been the economic failures of the past and the present that helped to deliver the Brexit vote. I take no pleasure in saying that it was a vote from which the Government seem almost determined to learn nothing. We have an economy that has seen wages grow more slowly than in any other advanced country in the G20.
Mr Kenneth Clarke
The right hon. Gentleman started in a welcome tone of offering cross-party collaboration. I was waiting to see what he proposed as the starting point for the Labour party. He spent about 30 seconds on that, in a couple of sentences, and he is now back to attacking the Government and the withdrawal agreement. Am I right in understanding that he essentially agrees with me that we should stay in a customs union and collaborate with our European partners on international trade deals? He talked about us collaborating with the single market, which I do not quite understand. Nowhere in the world is there an open border between two countries unless they have a customs union and regulatory convergence. Is he advocating that? That not only solves the Irish border problem, but eases the economic consequences of leaving the European Union to a considerable extent.
John McDonnell
I thank the Father of the House for his intervention. Let me make this clear. First, we want a permanent customs union, and we want to ensure we have a future say in future trade deals that reflects the strength and size of our economy. Secondly, we want a close collaborative relationship with the single market, which we believe we can achieve, but we also want the ongoing protection of regulations on employment, the environment and consumer rights. Those are the negotiations that we wish to undertake—if not in government, as a Parliament.
Charter for Budget Responsibility
Debate between John McDonnell and Lord Clarke of Nottingham(9 years, 1 month ago)
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Hon. Members
Mr Clarke
What happened under the last Labour Government was that the Chancellor and his regulatory authorities allowed first the dotcom bubble and then the crazy credit boom. Tax revenues temporarily soared to astonishing levels. The Labour Government carried on running a deficit on top of those tax revenues, and then the revenues collapsed, leaving us with the worst annual deficit in the G20. The last Government were complicit in the consequences of 2008.
John McDonnell
And when that expenditure was being determined in the House, the Opposition supported it, and never objected. The right hon. and learned Gentleman may well have rejected it, but I remember his Budgets. His Budgets balanced, but when they balanced, there were 40,000 homeless families in London. People were dying on waiting lists before they got their operations. Those were the consequences of his economic policies.
Focusing on the deficit continues to mask the underlying weaknesses and failures of our unreformed economic system. We are witnessing a recovery based on rising house prices, growing consumer credit, a ballooning current account deficit and still inadequate reform of the finance sector. I worry that some of the warning signs are reappearing. But the Conservatives have adhered to their dictum: never let a crisis go to waste. They have skilfully used their narrative of the deficit to enable them to cut public services, slash benefits, and give tax cuts to the rich and corporations. Successive charters and fiscal mandates brought before this House have been cynically used as a weapon in that cause.
The purpose of the original Fiscal Responsibility Act 2010, brought in by Labour, was to bolster the then Government’s economic credibility. I recall what the current Chancellor said. He described it as little more than a political stunt. But he soon learned what a useful tool charters and mandates can be, and immediately upon the coalition’s election, he introduced his own. The fact that he missed most of his targets was irrelevant to him; what was more valuable was that charters could be picked up whenever needed and prayed in aid to excuse any attack on the welfare state and any cut in benefits, and provide a means to redistribute wealth upwards.
The charter before us today also has little basis in economics. Let me quote Dr Ha-Joon Chang, Professor Thomas Piketty, Professor David Blanchflower, Mariana Mazzucato and Simon Wren-Lewis. Those eminent economists in our society said that it has
“no basis in economics. Osborne’s proposals are not fit for the complexity of a modern 21st-century economy and, as such, they risk a liquidity crisis that could also trigger banking problems, a fall in GDP, a crash, or all three.”
They go on to say that if the Government
“chooses to try to inflexibly run surpluses…Households, consumers and businesses may have to borrow more overall, and the risk of a personal debt crisis to rival 2008 could be very real indeed.”
Legal Aid, Sentencing and Punishment of Offenders Bill
Debate between John McDonnell and Lord Clarke of Nottingham(12 years, 7 months ago)
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Mr Clarke
Let me move on, because I am giving way far too much and taking a great deal of time.
Lords amendment 170 sounds like an innocuous measure, but it would open up legal aid to cover the costs of expert reports in all the cases that currently are funded by CFAs or no win, no fee arrangements. It would allow lawyers to apply for legal aid to cover the expert report in any case where a client, of any age, was financially eligible, and to still get their success fee in respect of their other legal costs. That would transfer all the risk in a no win, no fee case from the solicitors and insurers to the legal aid fund and the taxpayer. That would be unfair to the taxpayer and would result in a significant expansion of the legal aid scheme.
I have covered with as much care as I can these particularly sensitive areas—
John McDonnell
I would not have sought to intervene if I had not been here from the beginning of the debate. I have been here the whole time.
I want to get clarity on one point in relation to children. The Children’s Society and the Refugee Children’s Consortium estimate that there are about 2,500 under-18s who will not gain support in relation to immigration matters. My borough deals with more unaccompanied child immigrants than any other in the country. When this matter was raised before, the Secretary of State said that those are uncomplicated cases and that such children can receive advice elsewhere. That has been interpreted as meaning that social workers are able to give that advice. However, social workers are not registered in that way under existing legislation, so there is a conflict between the proposals and the existing legislation that needs to be resolved; otherwise local authorities will be in not only financial difficulties but legal difficulties.
Mr Clarke
No, not all of them, but the vast majority. Once such a case becomes an application for asylum, legal aid is available. I am surprised by the figures that have been given for the cases that do not eventually wind up getting legal aid in that way. The problems posed by such cases, when a child gets off an aeroplane unescorted, go far beyond the legal ones. The Home Office is discussing with local authorities how to improve the response to such children. However, I am not satisfied that that category of children can be given access to legal aid for other claims of a legal kind, which I cannot visualise straight away, that might arise. The vast majority of those cases quickly turn into asylum applications and will therefore get legal aid.
I hope that the House is persuaded that the Government have taken a consistent and principled approach to reforming the scope of legal aid. No one looks to touch this area of the justice system lightly, but change is unavoidable if we are to protect access to justice and ensure that the system is affordable. On domestic violence, children, clinical negligence and welfare benefits we have sought to ensure that scarce resources are targeted where they matter most and where alternative funding or representation are unavailable. It is not easy to get that balance right. In the light of the principles that I set out at the start of my speech, I think that we have got the balance about right with the amendments that we have accepted and those that we oppose.
I believe the Government have been particularly responsive on all the issues. We knew perfectly well that when cutting back on this country’s legal aid expenditure, we ran the risk of damaging our system of justice if we got it wrong. We have made the countless moves that I have listed since we first produced the Bill however many months ago, in response to debate in both Houses. I am grateful to the Commons and the Lords for what they have done, and I hope that I have eventually put forward clearly the Government’s thoughts on the Lords amendments and on our amendments in lieu. I commend our position to the House.
Prisons Competition
Debate between John McDonnell and Lord Clarke of Nottingham(13 years, 7 months ago)
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Mr Clarke
We are out to consultation at the moment on the Green Paper on sentencing in general and we floated in that the prospect, about which my hon. Friend rightly asks, of having a regular programme of competitive tendering throughout the prison system so that we can revisit quality and cost, in an organised way, gradually over the years. We have not finalised the form, but we will come back in due course once we have finished our consultations and responded, and we will answer his question about exactly what we want to do on that front. Probation trusts are equally involved, I hope, in the development of the payment by results policy. We are as anxious to see public sector bodies involved as private sector bodies. The best of the probation trusts seem to me, in my contact with them, to be quite enthusiastic about becoming involved in such a contracting process.
John McDonnell (Hayes and Harlington) (Lab)
The Secretary of State may consider that privatisation is no longer controversial within this House across certain parties, but it is deeply controversial among Prison Officers Association members. He should meet the POA as a matter of urgency, and should look well beyond TUPE for the protection of staff who are currently being made vulnerable by privatisation; otherwise I believe that there will be industrial conflict.
Mr Clarke
I have every respect for the hon. Gentleman’s opinions, in which he has always been consistent. He has always been an articulate advocate, and I almost welcome him as a voice from the past. I realise that the POA is rather stuck in its traditional attitudes towards this kind of thing, but I really hope that it will reflect on what is almost a universal view in this House that we are moving on to a proper, fair, competitive basis for deciding how best to run prisons and at what cost, without being so obsessed about whether they are private sector or the public sector. Of course, the Under-Secretary of State for Justice, my hon. Friend the Member for Reigate (Mr Blunt) and I will continue our close contact with the POA. We have had to have contingency plans in case anyone is so foolish as to start industrial action—but it is illegal to take industrial action. The sensible thing for people to do is to look at the tendering process and, if they are in the public sector, decide how their prisons can achieve a better score in future. They have won one this time, but it is up to them to put in the best bids as we develop the policy.