Europe
Debate between John Redwood and William Bain(11 years, 3 months ago)
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Mr William Bain (Glasgow North East) (Lab)
It is 62 years since the treaty of Paris was adopted, and 57 years since the adoption of the first treaty of Rome. In that time we have seen peace among the great powers in Europe, a great boost to our growth and trade, and a greater sense of social unity between Europe’s peoples. That is now under threat because the Government no longer seem willing to make the case that pooling part of our sovereignty increases our collective economic strength within Europe, and that our influence in the world increases as a result.
The success of the European Union means that other countries such as Serbia and Turkey are queuing up to join, and the model of peaceful rules-based co-operation between nation states has been followed in Asia with the Association of Southeast Asian Nations, in Africa with the African Union, and in south America with Mercosur. We know from the views of the American Administration and the Government of China that our sense of and influence in the world is bound up with our full participation in the European Union, and we risk that at our peril.
Like my hon. Friend the Member for Sheffield Central (Paul Blomfield), my grandfather served during the first world war and my parents were children during the second world war when Europe was in the process of tearing itself apart.
Mr Bain
Sadly I cannot because of time. For my generation, Europe stands stronger together with common rights at work, free movement for workers and a successful single market of 480 million with whom we trade more than 48% of our exports. On many issues, the common stance that we have adopted has added to our strength in the world. That is why, as a Scottish Member of Parliament, I am clear that we must remain part of the United Kingdom and through that play a crucial part in Europe. I am hugely concerned that the Scottish Government’s proposals to take Scotland out of the United Kingdom would impact on that strong link with Europe and lead to years of negotiations and uncertainty about our currency and central bank, and our inclusion in global trade agreements.
The EU is at an important crossroads and needs reform, not least of its economic policies. Through the fiscal pact to which 25 countries have signed up, we see southern Europe at risk of a generation of austerity. The tragedy of the Prime Minister’s leadership—as the ghost of Maastricht continues to stalk the Conservative Benches two decades after the ratification of that treaty—is that Britain is well placed to lead on major issues of reform such as reducing agricultural subsidies through the CAP, increasing Europe’s investment in science and innovation, and completing the single market in energy. Instead of prioritising those areas, the Prime Minister is throwing that opportunity away and trying to diminish the rights of workers within the single market to paid holidays, maternity and paternity leave, and safe conditions at work.
As the Government’s survey shows, if Britain is not part of the single market and if the rest of Europe completes it in our absence, our national income would be 7.4% lower—[Interruption.] The analysis, which Government Members can consult, was conducted by the Department for Business, Innovation and Skills.
The Prime Minister is placing his increasingly forlorn ambition of uniting his party above our national interests at the heart of Europe. It is the Opposition’s duty to make the positive case.
Welfare Benefits Up-rating Bill
Debate between John Redwood and William Bain(11 years, 3 months ago)
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Mr Redwood
That is not my case at all. My case is that the Government inherited an impossible financial position: the public sector was spending and borrowing far too much and the economy had been performing very badly, with a collapse in living standards towards the end of Labour’s period in office that was the biggest that any of us in this House had witnessed in our lifetimes.
My right hon. and hon. Friends on the Front Bench are trying desperately to come up with a series of policies that promote growth and restore a greater degree of normality. The Committee must recognise that the model that sustained growth from 1945 through to 2007 was comprehensively broken when Labour broke the banks and nationalised them. Until we sort that mess out, we will be dealing with very unpopular and difficult choices, whoever is in government.
Mr William Bain (Glasgow North East) (Lab)
I know that the right hon. Gentleman always reads his economic documents, so why does he disagree with the view expressed by the Chancellor when he came to office in 2010 and by the IMF now that the automatic stabilisers in our economy should operate unimpeded?
Mr Redwood
If the hon. Gentleman looks again at the numbers in the Budget Red Book, he will see that the automatic stabilisers have been more than functioning. Under this Government, public spending has gone up considerably while borrowing has remained at extremely high levels. The borrowing levels the Government inherited were off the chart compared with those in any previous cycle we have witnessed in the British economy. Levels of public borrowing are still well above the peaks in previous cycles. The hon. Gentleman must understand that the numbers show that plenty of automatic stabilisers are in operation—the question he needs to answer is why they are not working. Of course, they are not working because of the other problems that have been inherited, such as the broken banks, the difficulties with tax rates and the large structural deficit. Those are all part of the problem and we can debate them at another time during a general debate on the economy.
The Government are attempting, through their tax and benefit changes, to tackle the problem of people asking, “Why work?” I have two bits of advice for my right hon. and hon. Friends on the Front Bench that might be more to the liking of the Labour party. If my right hon. and hon. Friends are going to pursue and sustain the policy of very low benefit increases for the next period, it is important that two other conditions are met. The first is that every action should be taken to get inflation down. If inflation suddenly took off, this would become a much tougher and crueller policy than Ministers have in mind. That would be extremely difficult. So it is in everybody’s interest—not just of those in low-paid work and not just those on benefit, but those people in particular—that more is done to sustain and control price rises.
Fuel Duty
Debate between John Redwood and William Bain(11 years, 5 months ago)
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Mr William Bain (Glasgow North East) (Lab)
I was intrigued by the Economic Secretary’s arguments when he moved the amendment. He is no longer in his place, but wherever he is at the moment, I hope he can afford enough fuel to return to planet Earth, as that was not a place he was able to inhabit much during his contribution. He spoke of the fanfare of international approval for the Chancellor’s policies, yet the OECD says that this year demand in our country will be one tenth of that in the United States and in the lowest fifth among EU countries. He said this Government dealt in costed spending commitments, from the very Dispatch Box where a few weeks ago the Prime Minister caused chaos in the energy industry by saying every consumer would be on the lowest possible tariff. The Economic Secretary also boasted about taking action on high commodity prices on behalf of a Government who are blocking the enactment of a global Dodd-Frank Bill in line with the successful approach in the United States.
Last week’s election in the United States showed that for voters both across the Atlantic and in the United Kingdom the key issue is living standards. During the longest journey out of an economic slump in Britain for 140 years, living standards have declined at a more prolific rate than during the recessions presided over by the Conservative party in the 1980s and 1990s. As last month’s Office for National Statistics study of well-being showed, on the net national incomes measure, incomes in the second quarter of 2012 were 13.2% lower than before the start of the great recession in 2008. We should be under no illusion: a real economic recovery for millions of lower and middle-income people in this country will not happen until these trends show signs of being reversed.
Mr Redwood
Does the hon. Gentleman agree that the biggest fall in living standards occurred on Labour’s watch, when boom went to bust?
Mr Bain
Tax credits helped to sustain family incomes in that period, but that is precisely the part of the tax and benefit system that is under such great assault from the Government the right hon. Gentleman supports.
We need a long-term strategy to tackle declining living standards, but there are short-term measures we can take now that will help ordinary families. We can have a cut in VAT and not proceed with the 3p rise in fuel duty next January. Both those measures would help to restore growth to an economy that has been starved of it for a year, and which is smaller now than at the time of the Chancellor’s comprehensive spending review of October 2010.
Despite a decrease in the headline consumer prices index inflation rate from 5.2% to 2.2% since last October, costs of basic goods such as electricity and food are going up. Average electricity bills are up by £200 since the coalition took office, taking the average bill to £1,310 a year. Costs for childminders for the over-2s in Scotland have risen at nearly twice the CPI inflation rate this year. Living costs are, therefore, soaring for millions of people.