Oral Answers to Questions
Debate between Justine Greening and Chris Williamson(10 years, 7 months ago)
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Justine Greening
It is 20 years since the Rwandan genocide—my right hon. Friend the Foreign Secretary was in Rwanda over recent days to commemorate that terrible event—but since then, Rwanda has taken huge steps forward in development. It is one of the beacons showing how countries can develop rapidly when there are the resources and the political will. We will continue our work with Rwanda.
Chris Williamson (Derby North) (Lab)
T4. I have just returned from a fact-finding mission to Qatar with the construction workers union, the Union of Construction, Allied Trades and Technicians, to look at the terrible plight of migrant workers in Qatar. I was reassured by some of the Secretary of State’s comments in reply to the question from my right hon. Friend the Member for East Renfrewshire (Mr Murphy). Will she, however, give the House an assurance that she will make representations to the Qatari authorities to end the kafala system, which is effectively bonded labour, and to stop the appalling circumstances of migrant workers living in abject squalor? Some 1,200 have been killed on construction sites already, and if some action is not taken, 4,000 will be dead before the World cup starts.
Justine Greening
The hon. Gentleman is right to raise those issues, and I assure him that we are raising them with the Qatari authorities. I will also do that.
Oral Answers to Questions
Debate between Justine Greening and Chris Williamson(13 years ago)
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Justine Greening
As my hon. Friend rightly points out, there are far more issues to do with the MOT test than just its frequency. We aim to look at all those issues as part of this review, and I shall be making an announcement shortly.
Chris Williamson (Derby North) (Lab)
I, too, extend my congratulations to the Secretary of State on her new role.
The Member of the European Parliament for the East Midlands, Glenis Willmott, has established that the European Union has no problem with the Thameslink contracts being retendered to incorporate socio-economic factors. The Business Secretary was on the “Today” programme this morning saying how much the Government supported the manufacturing industry. May I urge the Secretary of State to show her commitment to British manufacturing by considering retendering the Thameslink contract, which could be achieved in a matter of six to 12 months?
Justine Greening
We cannot retender that contract, not least because it would put on hold the vital work being done on the Thameslink project, which is creating, I think, 3,000 jobs. The hon. Gentleman’s point about better reflecting socio-economic factors in the procurement process is, however, a good one. That is precisely why we are looking at how we can improve the procurement process, which I should add was developed by his Government.
Amendment of the Law
Debate between Justine Greening and Chris Williamson(13 years, 8 months ago)
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Chris Williamson
No, I will not give way any more.
This Budget does little or nothing to ameliorate the public service cuts. The cuts to local council budgets in particular are vindictive, gratuitous and counter-productive. The Department for Communities and Local Government budget is set to experience a whopping real-terms reduction of 67.8% over the next four years.
The Chancellor needs to create demand in the economy. My hon. Friend the Member for Coventry North West (Mr Robinson) referred to the importance of the construction industry. Every pound invested in construction generates £2.84 in total economic activity, and 92p of every pound spent on construction is retained in the UK. Every pound invested by the public sector yields a return of 56p to the Exchequer, making it a net investment of just 44p. In spite of those facts, house building is at an all-time low, Building Schools for the Future was scrapped and housing targets have been abolished. The £250 million announced in yesterday’s Budget to support first-time buyers is not enough.
The proposed changes to the planning system, which as the Chancellor said will introduce a presumption in favour of sustainable development, contradict the proposals in the Government’s Localism Bill. What is going on? On the DCLG website, the Minister of State, the right hon. Member for Tunbridge Wells (Greg Clark), who has responsibility for decentralisation, is quoted as saying that the Localism Bill
“will enact new rights allowing local people to shape and influence the places where they live, revolutionising the planning process by passing power down to those who know best about their neighbourhoods.”
A Budget briefing from the UK Contractors Group states that
“it has been much harder to obtain definite information on investment intentions from a number of key public sector clients. Indeed, there appears to be some deliberate attempts to delay decisions and to obfuscate on forward plans. A prime example of this is the future of the school building programme. The Sebastian James review was originally scheduled to report to ministers before Christmas. In March, we are still waiting for the Department for Education to signal its intentions. Equally on energy supply, the industry stands ready to support the enormous amount of investment needed but to deliver this support effectively and efficiently we need a clear understanding of the future programme.”
It goes on to say how the health reforms have caused further confusion.
I turn to the Chancellor’s modest reduction in fuel duty. As other Members have said, it is more than offset by the imposition of the VAT rise. I have been lobbied heavily by small businesses and residents in my constituency, who say that the VAT rise on petrol is hurting and needs to be reversed. It is not acceptable for the Government to argue that they are prevented from doing so by the European Union—that simply will not wash.
The Economic Secretary to the Treasury (Justine Greening)
Will the hon. Gentleman give way?
Chris Williamson
I will not give way any further, I am afraid.
The Chancellor should have done more to support manufacturing. The growth fund is inadequate—nowhere near as much as the regional development agencies were spending—business confidence is falling and the enterprise zones will not generate growth either. It is simply a case of rearranging the deckchairs. Let us not forget that it was the Tories who decimated manufacturing industries when they came to power in 1979. They also put all their eggs in the financial services basket, and that is why this country was overexposed when the financial bubble burst.
There are also problems with the Government’s ambitions on welfare reform. A Financial Times survey of businesses showed that three quarters of them said that they could not absorb lost public sector jobs, and that 57% were not interested in doing so. What hope do long-term unemployed people have of being able to get employment, given the welfare reforms and the so-called private sector-led recovery, which is not happening? They will simply not be able to get employment, given the cuts that the Government are bringing about.
Further to that, an investigation by my local paper, the Derby Telegraph, has shown that unemployed workers are being discriminated against by the insurance industry, which is saying that landlords who let their properties to unemployed workers will not be able to obtain insurance. A lot more people will be facing that situation as a result of the cuts, with more and more people losing their jobs.
We are in an economic downward spiral, and we need a virtuous circle. We need public sector investment to create jobs and demand in the economy, which in turn would create more demand and then more jobs. Yesterday, the Chancellor claimed that his decisions had brought economic stability, but the reality is that they have created a toxic cocktail of falling growth, increasing poverty and rising unemployment.
The inconvenient truth for the Chancellor is that his decisions have left this country facing the spectre of stagflation. To add insult to injury, he is borrowing an extra £44.5 billion a year, and for what? It is to pay for unemployment and lower growth. It is clear that he has lost the plot, and that we need a plan B. He said that
“society should not just be judged by the strength of its economy alone, but also by the compassion of its people”.—[Official Report, 23 March 2011; Vol. 525, c. 961.]
He certainly fails on the first point, and he is making the second very difficult. I am afraid that unless we get a plan B, this country is doomed to further decline.
Comprehensive Spending Review
Debate between Justine Greening and Chris Williamson(14 years ago)
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Justine Greening
As the hon. Lady will be aware, we have set up the Office for Budget Responsibility, which is an independent office. It is the OBR that is predicting year-on-year falling unemployment and rising employment. I hear Opposition Members talking about 480,000 or 490,000 public sector job losses, but I am afraid they have to consider that the same report assesses that 1.6 million jobs will be created in the private sector. They cannot have it both ways.
Justine Greening
I will not, because we have had a long debate and I have three minutes to respond to each hour of it. I really do want to try to cover the points that hon. Members who participated raised. I apologise to the hon. Gentleman, but I want to respond to what has been said.
The bottom line is that if a country loses control of its finances, it loses the ability to choose how to spend its money, and its priorities become those of its debtors, not of its people. That is why we outlined a clear and credible plan to deal with the deficit when we came to government and that is why we will stick to it. The Government are firmly focused on achieving sustainable growth. Tackling the deficit will help to provide the strong economic bedrock on which the private sector can build, as my hon. Friend the Member for Esher and Walton (Mr Raab) pointed out.
Chris Williamson
This morning, I met a representative from the UK construction group that represents some of the largest construction companies in the country, which said that it did not recognise the growth figures that the Prime Minister quoted yesterday. It said:
“The 4% increase in construction turnover in”
quarter 3
“is unbelievable and does not reflect the mood of the major players”.
Is it not a fact that the private sector-led recovery on which the hon. Lady is relying is just a fantasy and will not come to fruition?
Justine Greening
I was about to ask the hon. Gentleman to give way, Mr Deputy Speaker. The Government are spending slightly more on capital infrastructure than the previous Government, so heaven knows what the industry would have thought of Labour’s plans. In the next four years, we will invest more than £30 billion in transport projects, £14 billion of which will fund maintenance and investment in our railways and £10 billion of which will be spent on road, regional and local transport schemes. We have created the new green investment bank to help finance sustainable infrastructure for the future and we have launched the £1.4 billion regional growth fund, which has rightly been welcomed by my hon. Friends the Members for Bristol West (Stephen Williams) and for Macclesfield (David Rutley).
Even when faced with the economic problems bestowed by the Labour party, we are still investing tens of billions of pounds in Britain’s future. That goes alongside the reduction in corporation tax that we brought forward in the emergency Budget and the reduction in national insurance that we have also brought forward, scrapping the Labour party’s jobs tax. The hon. Member for Wallasey (Ms Eagle) said that the spending review is not just about numbers, but I shall give her a number—400,000. That was the number of extra unemployed at the end of Labour’s time in power, but Labour still wanted to introduce the jobs tax.
The hon. Members for Easington (Grahame M. Morris), for Stockton North (Alex Cunningham), for Middlesbrough South and East Cleveland (Tom Blenkinsop), for Penistone and Stocksbridge (Angela Smith) and for Nottingham South (Lilian Greenwood) all spoke of their concerns about the spending review and the cuts, but none of them offered any alternatives. We hear about the Opposition supporting cuts, but we never find out which ones they support.
The second principle behind our decisions is to ensure fairness and make sure that those with the biggest shoulders bear the largest burden, while protecting the most vulnerable in our society. That is why the Government have restored the earnings link for the state pension and ring-fenced NHS funding. We want to give every child the best possible start in life by increasing the child tax credit for the lowest-income families and by protecting our investment in schools. There is nothing fair about not tackling the deficit and placing the millstone of debt that we currently have around the necks of our country’s 20-somethings for the future.
Finance Bill
Debate between Justine Greening and Chris Williamson(14 years, 4 months ago)
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Justine Greening
No, I will not.
The OBR said that the deficit was £12 billion larger than had previously been suggested, so our priority was to tackle that deficit. Although reductions in public sector spending will be necessary to ensure that it is at a level affordable to the public, taxes clearly have to play their part as well. As we have heard, even from the hon. Member for Wallasey (Ms Eagle), growth in employment must be led by the private sector. Reducing incentives to employers, as the previous Government would have done by introducing the jobs tax and raising small companies’ corporation tax rates, would have reduced incentives and led to our economy languishing for longer and longer, and debt building up.
Chris Williamson (Derby North) (Lab)
Is the Minister aware, though, that the Financial Times published research last month showing that 1.2 million jobs in the private sector rely on the public spending that she is going to cut?
Justine Greening
That is typical of the contributions that we have had from Opposition Members all the way through our debates. The hon. Gentleman’s party went into the election having passed its Fiscal Responsibility Act 2010, which set out 20% cuts. That means one of three things. Either Labour Members had no intention of ever reducing or tackling the deficit, in which case the Act was gross duplicity; or they went into the election standing on a platform of cuts with no idea whatever of how to deliver them, in which case it was gross incompetence; or they knew what they wanted to do but still, in spite of all the hours of debate, fail to admit to any of the measures that they were planning to take, in which case it is gross concealment. We need take no lectures from the hon. Gentleman.