Oral Answers to Questions

John Robertson Excerpts

Wednesday 15th January 2014 Commons Chamber

[Ann McKechin (Glasgow North) (Lab)]

1. What steps she is taking to address the rising cost of living in Northern Ireland.

[John Robertson (Glasgow North West) (Lab)]

4. What steps she is taking to address the rising cost of living in Northern Ireland.

[The Secretary of State for Northern Ireland (Mrs Theresa Villiers)]

The actions the Government are taking to help with the cost of living include freezing fuel duty, cutting income tax bills, delivering the biggest ever single cash increase in the state pension and helping to keep interest rates low by dealing with the deficit.

[Mrs Villiers]

As I have said, the Government take this issue very seriously. That is why fuel duty today is 20 pence per litre lower than it would have been if we had stuck with the previous Government’s plans; that is why we have cut income tax for about 618,000 people in Northern Ireland and taken 75,000 out of income tax altogether; and that is why people on the minimum wage will see their income tax bills halved by April.

[John Robertson]

I wonder whether the Secretary of State can tell us what her assessment is of the Advice NI social policy report, which confirms that over 11 food banks have opened in Northern Ireland since 2012. Is she happy with that? If not, what does she plan to do about it?

[Mrs Villiers]

Of course it is a matter of regret that anyone feels the need to go to a food bank, but the Government are doing everything they can to support people on low incomes with the cost of living. I hope the Opposition will welcome the fact that inflation fell to 2% yesterday. We will continue to give people support, in particular with our triple lock on pensions that delivered the biggest ever single cash increase in the state pension, and we will continue to deal with the deficit. The real threat to the cost of living would be a Labour Government, who would put up taxes and see interest rates increased.

British-Irish Parliamentary Assembly

John Robertson Excerpts

Thursday 21st June 2012 Commons Chamber

[John Robertson (Glasgow North West) (Lab)]

Let me say what an honour it is to follow the hon. Members for Tewkesbury (Mr Robertson) and for North Dorset (Mr Walter) and my right hon. Friend the Member for Torfaen (Paul Murphy). Let me also congratulate the hon. Member for Tewkesbury on securing this debate.

I am vice-chair of committee C in the assembly, which deals with the economy, a subject that is—if I said “popular”, that would probably not be the right word, but it has certainly had a lot of attention focused on it. I hope that both Governments will look at, and take on board, our recent report on small and medium-sized enterprises and the problems they are experiencing. It was an excellent report, and we are going to look at credit unions next.

As my right hon. Friend the Member for Torfaen said, the next plenary session will be in Glasgow. I can assure him and all those attending from this and other Houses that they will have an excellent time. I know that those who practised drinking Irish whiskey will be looking forward to the real thing, so I invite them to try it when they come to Glasgow.

One thing that has come out of what has been said so far is the fact that the United Kingdom and Ireland have never been so close. Her Majesty the Queen had a lot to do with that. I believe that her visit signalled a togetherness that was not there before and that a lot of hatreds were buried that day when she set foot on Irish soil. The people of Ireland took her to heart, and it has been said many times since how much they appreciated her going there. The visit will have a lasting effect on the relationship between this country and Ireland.

The Irish nation has had a great influence on the west of Scotland. More than a few people came over during the potato famine and other sad times in Ireland. My own grandmother came from Ireland, although, sadly, I never had the opportunity to meet her and find out her story. That is my loss, and I need to bear it. There are many people of Irish descent in the west of Scotland, and the rivalry is still there between those on either side of the divide, although not to the same extent that it once was. We live as one nation these days and get on together a lot better. I believe that that is because of the relationship between Ireland and the United Kingdom. The leadership that has been shown by both Parliaments has had a lasting and increasing effect, on both sides of the Irish sea.

The need for co-operation has never been so great, particularly in times such as these. I say that as one who is involved with the BIPA economic committee. Ireland is important to this country, and we are important to Ireland. It is only right, therefore, that we should have mutual respect for each other and a mutual desire to work with each other. I believe that that co-operation will become even greater in the years to come, and that, as we come out of recession, there will be opportunities on both sides of the Irish sea to build up those relationships even more.

I look forward to a time when BIPA is not only taken for granted but looked at and listened to in the same way as other such bodies throughout the world are looked at and listened to. We have brought forward a lot of good ideas and put many good reports to both Parliaments, and I look forward to seeing the Government’s response to our report on small and medium-sized enterprises. It is remarkable that the problems affecting those over the water in Ireland are so similar to the problems in this country. We are similar, we are the same people and we speak the same language. We in Scotland certainly hold Ireland very dear. We have more than a little respect for the country and many of us regularly take holidays there. It is important that the British-Irish Parliamentary Assembly should go forward, for the benefit not only of this House but of the Irish people.

--- Later in debate ---

[Esther McVey (Wirral West) (Con)]

The British-Irish Parliamentary Assembly’s mission is to promote co-operation between political representatives in Britain and Ireland. It is a much-needed group, promoting not only co-operation but an understanding of our cultural links and our broader interdependence. As has been mentioned, 42% of Irish exports are to the UK and Ireland is Britain’s fifth largest trading partner. That underlines our financial interdependence.

I come from Liverpool, where almost all of us have Irish roots—hence the city’s name, “the capital of Ireland.” We have deep family ties. In common with many other families, my ancestors will have landed at Liverpool port in the 1800s. Two brothers married two sisters and so the family journey began.

There are now new ties as a result of Liverpool, Dublin and Cork all having become the capital of culture—Liverpool became the capital of culture in 2008. This led to an explosion in construction in those cities. The consequent property boom was fuelled by massive lending by the banks. When the property market collapsed, the Irish banking system was plunged into crisis. There is much to learn from that.

The Irish Government carried out a sizeable fiscal consolidation, which they are continuing. Ireland’s success in cutting its deficit, shrinking its banks and returning to modest economic growth has distinguished it from other parts of the eurozone that were also built on a construction boom. Given our links with Ireland, it is important that we have constant dialogue so we can learn from each other.

What have the Irish done to get out of their economic crisis? They have developed their small and medium-sized enterprises, and they have been increasing exports. Ireland’s exports rose by 4% in 2011, and went on to grow strongly in the first months of 2012. Most of that has come from SMEs, but it also comes from the pharmaceutical and chemical sectors.

As I have an interest in the SME sector, I elected to serve on the economic affairs group, along with the hon. Member for Glasgow North West (John Robertson). We looked at how well the Irish are adapting. There are 198,500 SMEs in Ireland, employing 1.2 million people. Ireland’s central bank says SMEs face significantly tougher lending conditions than similar firms elsewhere in the eurozone. It also says that demand for credit is no different in Ireland from elsewhere in Europe, but the Irish SME sector faces challenges in paying back its borrowing, with problems in respect of 30% of loans. The latest research by central bank economists shows that while demand for credit among Irish firms is at, or above, the eurozone average, the lending conditions imposed by the banks are significantly tougher in terms of collateral requirements, interest rate charges, size of loans available and rejection rates. BIPA has been addressing those issues of late.

We are looking at the impending funding gaps, too. Between now and the end of 2016, banks will be unable to supply between £84 billion and £191 billion of the finance needed to support the growth in the UK economy.

[John Robertson]

The report that was produced was very good, but does the hon. Lady agree that the Irish side seemed to take it much more seriously than the British side, and that we would like the Minister and the British Government to be a wee bit more enthusiastic about what BIPA is trying to do?

[Esther McVey]

I am not sure that I agree that the Irish are looking at it more seriously, but they are ahead of the curve. They have been through the turmoil in advance of us, and there is much that we can learn from what has happened there. They also realise how tough it is for small companies to get money from the banks. I hear similar stories from small businesses in the UK, including locally in Wirral West.