Oral Answers to Questions

Julian Brazier Excerpts

Tuesday 17th January 2017 Commons Chamber

[Jane Ellison]

Rather than just reading the manifesto, Ministers have actually been meeting the chemical industry. The Under-Secretary of State for Exiting the European Union, my hon. Friend the Member for Worcester (Mr Walker), met the Chemical Industries Association on 17 November. All these issues were explored in some detail and a good, productive conversation was had.

[Sir Julian Brazier (Canterbury) (Con)]

I welcome my hon. Friend’s typically constructive approach, but does she recall the clinical trials directive that destroyed much of the pharmaceutical industry in this country overnight, including Pfizer’s site in east Kent?

[Jane Ellison]

As I recall, the original directive did have some negative effects, but it was improved on in subsequent negotiations to ensure that it did not have the same effect.

Oral Answers to Questions

Julian Brazier Excerpts

Tuesday 29th November 2016 Commons Chamber

[Mr Hammond]

We did announce funds for flood resilience in the autumn statement, distributed from money that had already been set aside for that purpose in the spending review. I did not mention Cumbria specifically in the autumn statement, but I will look at the case that the hon. Gentleman has raised, and will write to him.

[Mr Julian Brazier (Canterbury) (Con)]

I welcome my right hon. Friend’s announcements of the various sums, and may I suggest that the sums the Government have put aside for coastal defence are critical for places such as Whitstable, in my constituency, for generating economic as well as social confidence among the people who live there?

[Mr Hammond]

My hon. Friend is absolutely right and of course flood defences are categorised as economic infrastructure precisely because they are a critical enabler of business activity and are critical to protect transport, communications, infrastructure and so on, and we will continue to invest in them.

Oral Answers to Questions

Julian Brazier Excerpts

Tuesday 25th October 2016 Commons Chamber

[Mr Hammond]

I can certainly reassure the hon. Gentleman that manufacturing industry is very much in the forefront of our thinking as we approach these negotiations. I am sorry that I have not had a chance to go to West Yorkshire, but I have been engaging with businesses in all sectors of the economy, including many businesses from the north that have attended round-tables in Downing Street over the past few weeks to set out their concerns so that we can take them properly into account.

[Mr Julian Brazier (Canterbury) (Con)]

In welcoming my right hon. Friend’s robust stance on this matter, may I suggest that as there is a large balance of payments deficit with Europe, specifically in the automotive sector, it would be in the EU’s interest to strike a decent deal with us, as he intends to do?

[Mr Hammond]

Our intention is to get the very best deal we can with our neighbours in the European Union to allow access for our companies to trade their goods and services into the EU. However, I would just caution my hon. Friend: to look at the economic arguments alone is to miss an important point. There is a political debate going on here in Europe, and European politicians are very conscious of the impact of Britain’s departure on their political project. I do not think we can be certain that economics alone will dictate the course of this negotiation.

The Economy and Living Standards

Julian Brazier Excerpts

Thursday 12th June 2014 Commons Chamber

[Mr Julian Brazier (Canterbury) (Con)]

I greatly welcome those steps. Will my right hon. Friend reassure the House that enforcement will be based on simple principles of integrity and not create a climate of box-ticking of the kind that we saw with the now discredited Financial Services Authority, which was introduced by the last Government?

[Mr Osborne]

My hon. Friend is absolutely right that what we need in our regulation is the exercise of judgment, rather than just process. One of the biggest errors of judgment was the abolition of the Bank of England as an authority that would oversee systemic risks in our economy and monitor levels of debt, and the creation of the tripartite regime, which we have abolished.

One of the new features of the financial regulation landscape is the Financial Policy Committee, which is the group, independent of the Government, that looks at systemic financial risks, seeks to spot asset booms and has the tools to do something about them—something that, sadly, was completely lacking six or seven years ago. We have given the Financial Policy Committee far-reaching powers over capital ratios and mortgage standards, with powers to recommend limits on loans-to-income and even loans-to-value. That is the answer to the question about housing and the impact of housing debt on our financial system and families. I am clear that the Bank of England should not hesitate to use those powers, and any others we make available, should it see serious risks emerging in the housing market. That is a fundamental improvement in the resilience of the British economy.

I agree that we need more homes as well, and the changes to our planning system are now increasing housing supply. Planning permissions and starts are now at a six-year high. The fundamental answer to the challenge of the British housing market is to see more homes built. Frankly, I would ask the Labour party, which opposed the planning changes when they were introduced a couple of years ago, to reconsider its position and confirm that they will remain in place. And by the way, as the hon. Member for Bishop Auckland (Helen Goodman)—who I think sits on her party’s Front Bench—said that Labour should get rid of the Help to Buy scheme, let me tell her that it is helping families across the country, overwhelmingly outside the south-east of England, to buy homes that are well below the national average house price. I am proud that this Government are helping people with the aspiration of buying their own home and providing the support for families who can afford it to get on the housing ladder.

Oral Answers to Questions

Julian Brazier Excerpts

Tuesday 29th April 2014 Commons Chamber

[Andrea Leadsom]

RBS has made a good start on its return to growth under Ross McEwan. It now has a good strategy to be the best small and medium-sized enterprise bank in Britain, but it still has a very long way to go. Therefore, we felt, and United Kingdom Financial Investments Ltd agreed, that the right thing to do was to not allow RBS to do what other private sector banks have done, which is to go for the maximum of 2:1 in terms of bonus to salary. Lloyds, on the other hand, is much further along the road to recover, so it was fine to allow it, in line with other private banks, to go ahead with that 2:1 plan.

[Mr Julian Brazier (Canterbury) (Con)]

May I say how good it is to see my hon. Friend in her new position? I welcome her answer. Does she agree that the best way to tackle widespread concern about excessive bonuses is through opening the banks up to proper shareholder inspection and answerability, as we are gradually doing?

[Andrea Leadsom]

Yes, my hon. Friend is absolutely right. One of the priorities of this Government has been to ensure proper scrutiny of directors’ pay and remuneration, so the changes in the Prudential Regulation Authority guidelines introduced last year, strengthening improvements made by the Labour Government, are designed to do just that—to put us at the forefront of scrutiny and transparency in pay for banking.

Oral Answers to Questions

Julian Brazier Excerpts

Tuesday 11th March 2014 Commons Chamber

[Danny Alexander]

There is no bluff, bluster or bullying on this issue. Businesses, the Treasury and the political parties are making it clear that, on the basis of the evidence, a currency union would be bad for Scotland and bad for the rest of the United Kingdom. The hon. Gentleman rightly lists a range of businesses that have looked at their business models and recognised the damaging effect that independence would have on them. It is important that those businesses feel able to speak out to explain to their shareholders and workers how they see it, because people in Scotland should have every bit of information we need when we cast our votes in the referendum in September.

[Mr Julian Brazier (Canterbury) (Con)]

I commend my right hon. Friend’s answer. Does he agree that anybody who thinks that a currency union between sovereign states is a good idea should make an early visit to southern Europe?

[Danny Alexander]

It is striking how little the Scottish National party appears to have learned from what has happened in the eurozone. The truth is that when setting up a new country, the last thing anyone wants to do is to abandon all the levers that control the economy. The first few decades of independence would be a risky, dangerous and uncertain phase, and embarking on it without the ability to control interest rates or an exchange rate that can, for example, adjust to oil price fluctuations, and with your hands bound on tax and spending—one of the lessons of the eurozone crisis—is an utterly ridiculous proposition.

Oral Answers to Questions

Julian Brazier Excerpts

Tuesday 28th January 2014 Commons Chamber

[Nicky Morgan]

On poverty projections, in October 2012 the IFS suggested that the number of children in relative poverty would fall by 100,000 in 2010-11, but in fact it fell by 300,000. If the hon. Lady wishes to talk about educational attainment, I am sure she will join me in welcoming the news yesterday that thanks to strong reforms of the education sector by the Secretary of State for Education, more schools are now offering better education than under the previous Government.

[Mr Julian Brazier (Canterbury) (Con)]

Does my hon. Friend agree that, as the Centre for Social Justice has argued for a long time, we must tackle the underlying drivers of poverty—family breakdown, illiteracy and innumeracy, substance abuse among parents and so on—as well as put a welcome emphasis, as she has done, on getting people back into work?

[Nicky Morgan]

I entirely agree with my hon. Friend. The Government remain committed to ending child poverty by 2020 and to the Child Poverty Act 2010. We understand that poverty is about more than income alone. As he has said, we need to focus on the root causes, one of which is poor mental health, in which I have taken a particular interest.

Oral Answers to Questions

Julian Brazier Excerpts

Tuesday 10th December 2013 Commons Chamber

[Nicky Morgan]

My hon. Friend is, of course, right. The fall in living standards is a consequence of the economic crisis left to us, and the best way to deal with living standards is to deal with that economic crisis so that families can find work in a growing economy.

[Mr Julian Brazier (Canterbury) (Con)]

Does my hon. Friend agree that the reason we have had a big drop in living standards is that we had the largest drop in output since the second world war? As my hon. Friend the Member for South Northamptonshire (Andrea Leadsom) says, we need to rebuild that output, as we are now doing, if we want to rebuild living standards.

[Nicky Morgan]

My hon. Friend is right. As I said, Paul Johnson of the Institute for Fiscal Studies said:

“We’ve have had the biggest recession we’ve had in 100 years”.

It is hardly surprising that household incomes and wages have fallen. We recognise that times have been very tough for households and for businesses, but as my right hon. Friend the Chancellor’s autumn statement showed last week, we are on the right path to a responsible recovery now.

Oral Answers to Questions

Julian Brazier Excerpts

Tuesday 10th September 2013 Commons Chamber

[Mr Osborne]

People have been helped with their low mortgage rates which our credible economic policy is delivering. They are helped by the increase in the personal allowance—£600 this year, £700 next year. They will be helped by our tax-free child care, but above all they are helped by an economy that is turning the corner. The worst thing for living standards, the worst thing for household incomes, would be a return to the disastrous economic policies of the Labour party.

[Mr Julian Brazier (Canterbury) (Con)]

Does my right hon. Friend agree that the trend in real wages further emphasises the need to hold down social security spending?

[Mr Osborne]

Of course, the key thing about social security and welfare is that it should encourage people into work. One of the remarkable achievements of my right hon. Friend the Secretary of State for Work and Pensions is that the number of workless households is now at a record low in this country. That is a huge achievement. Since the Opposition have been raising all these questions about living standards and wages, perhaps they would like to hear what the right hon. Member for Birmingham, Hodge Hill (Mr Byrne), a member of their shadow Cabinet, has been saying. He said:

“From 2004 onwards…families on ‘median incomes’—millions of workers—…were feeling the strain…people were working just as hard as ever—but were not getting on”.

He presented his findings to the Cabinet in 2010 but they got buried:

“We picked it up too late. It was very late in the day, is the truth”.

Trident Alternatives Review

Julian Brazier Excerpts

Wednesday 17th July 2013 Commons Chamber

[Danny Alexander]

I certainly hear the point my hon. Friend is making. The veterans clearly played an important role in the development of the deterrent, and I am sure that the Under-Secretary of State for Defence, my hon. Friend the Member for Ludlow (Mr Dunne), who is going to reply to the debate, will be able to add something more on that in his comments.

The review was tasked to answer three questions. First, are there credible alternatives to submarine-based deterrence; secondly, are there credible submarine-based alternatives to the current proposal; and, thirdly, are there alternative nuclear postures that could maintain credibility? The review has been thorough, detailed, extensive and objective. The analysis looks in detail at specific combinations of platform, delivery vehicle and warhead design, but excludes technologies that could not be ready by 2035. Variants of the current successor programme are included.

As for alternative platforms, the review considered large aircraft, combat jets, surface ships and multiple types of submarine, including those with a dual role. As for alternative delivery systems, the final analysis was focused on two types of potential future cruise missile—a subsonic stealthy cruise missile and a supersonic cruise missile, each carrying one warhead. Warhead design issues were considered and were important in the review.

An assessment of our ability to deliver alternative options showed that producing the warhead and its integration into a cruise missile or bomb would be the critical challenge. The reality is that the UK nuclear warhead programme is highly optimised around producing and maintaining warheads for the Trident missile. The review found that moving towards an alternative would add technical, financial and schedule risk to the programme. Delivering a warhead for an alternative system would therefore take at least 24 years—deliverable with some risk by about 2040. The crucial point is that the review judged this warhead time scale to be longer than the Vanguard submarines can safely be operated for. There are, of course, options to bridge the gap, but when we look at the cost of alternative systems, it becomes clear that each cruise missile-based option includes an extra £10 billion on its price tag because of the need to bridge the gap.

The bottom line is this, and I quote from the review:

“The analysis has shown that there are alternatives to Trident that would enable the UK to be capable of inflicting significant damage such that most potential adversaries around the world would be deterred.”

The analysis shows that cruise missile-based options are militarily credible, but, because of the gap, my conclusion is that a replacement nuclear deterrent based on the current Trident system is the most cost-effective for the period we are considering.

[Mr Julian Brazier (Canterbury) (Con)]

I am most grateful to my right hon. Friend for giving way and I welcome his conclusion on submarines, but will he accept that continuous-at-sea deterrence is rather like pregnancy—nature admits of no middle position?

[Danny Alexander]

I will come to that, but I do not accept the point; that may be an accurate description of pregnancy, but not of deterrent postures.