Amendment of the Law

Karl Turner Excerpts

Monday 26th March 2012 Commons Chamber

[Alun Cairns (Vale of Glamorgan) (Con)]

It is a pleasure to follow the right hon. Member for Stirling (Mrs McGuire) and, I hope, to support my hon. Friends in introducing an element of reality, bearing in mind the financial situation we face. I pay tribute to the Chancellor and to the Treasury team, and to the Under-Secretary of State for Culture, Olympics, Media and Sport, my hon. Friend the Member for Wantage (Mr Vaizey), for the way in which he introduced the debate. I shall come to the Budget’s focus on the creative industries shortly.

The starting point of such a debate must be the state of the nation’s finances. We must consider the debt of the nation and the deficit of the nation, as well as the structural deficit and the interest on that debt. As we know, £120 million a day is paid from the public purse to service the nation’s debt. I have heard the groans that come from the Labour Benches when we repeat these figures time after time, but they are still true, and that is the context in which the Chancellor and the Treasury team have to work. It has been said before and needs to be said again that the financial position is unprecedented, and any tax cuts in any Budget have to be funded. It is simply not an option to continue to borrow money time after time as the previous Administration did.

[Karl Turner (Kingston upon Hull East) (Lab)]

If the hon. Gentleman believes that his Government’s policy is working, why has the Chancellor borrowed a further £147 billion?

Living Standards

Karl Turner Excerpts

Monday 5th March 2012 Commons Chamber

[The Economic Secretary to the Treasury (Miss Chloe Smith)]

I thank hon. Members for their contributions to what has, on the whole, been an insightful debate. We have heard from the hon. Member for Bristol West (Stephen Williams), my right hon. Friend the Member for Wokingham (Mr Redwood), my hon. Friends the Members for Witham (Priti Patel), for Mid Norfolk (George Freeman) and for Halesowen and Rowley Regis (James Morris), the hon. Member for East Antrim (Sammy Wilson) and, indeed, my fellow by-election winners, the hon. Members for Oldham East and Saddleworth (Debbie Abrahams) and for Inverclyde (Mr McKenzie), whom I very much welcome to this House.

I note that today’s motion is deficient, in that it gives the wrong date for the Budget—I wonder whether that reflects the Opposition’s grasp of detail when they want to spend and borrow an extra £12 billion. It is no surprise that they do not wish to talk about how to bring the deficit “down”, as mentioned in the third line of their motion. They also said nothing about lone parents. Do they not care about the single mums and dads? No, there was not a word for them and the fairness of their already having to work 16 hours a week.

As the House is well aware, we all face tough economic conditions as we recover from the disastrous economic legacy left to us by the previous Government.

[Karl Turner (Kingston upon Hull East) (Lab)]

Will the Minister give way?

[Miss Smith]

No, I shall not, because we have had plenty of time to hear from Labour Members. I must press on. We all know that, in these tough times, families across the UK are tightening their belts, managing pay freezes or worse, and coping with ongoing economic uncertainty. Many families are confronting falling living standards because of the dire economic situation we inherited. The Opposition want to keep on spending and keep piling on the debt, but we refuse to burden our children and mortgage the country’s future with their profligacy.

Tackling the deficit is the vital precondition for a sustainable recovery, underpinning private sector confidence to support growth and job creation. It is right and fair that we tackle the deficit now, as a foundation for prosperity. It is because of our decisiveness that we have secured record low gilt yields, which feeds through to record low and stable interest rates that make a real difference to families paying their mortgages and to refinancing business loans right across the country.

If we are going to discuss a squeeze on living standards, let us talk about what a rise in market interest rates would mean for families across the UK. It would force taxpayers to find an extra £21 billion in debt interest payments; it would increase the cost of business loans by £7 billion; and it would add £10 billion to mortgage bills every year, or an extra £1,000 for the average family—and that with just a 1% rise. Let me remind the House that when we took office, our rates were tracking those of the likes of Spain and Italy, but now they are close to those of Germany. That is because of the tough decisions we have taken.

[Karl Turner]

Will the Minister give way?

[Miss Smith]

No, I shall not, as I have already said.

According to the shadow Chancellor, who, as ever, cannot be quiet, low interest rates are a sign of trouble. He would rather have higher interest rates, a bigger squeeze on families and an even bigger fall in living standards.

The simple truth is that the Opposition have no credible response to the economic challenges that this country faces, which is why we must never return the keys to those who crashed the car. It is we who have the answers to tackling the deficit and securing our prosperity. I know that for many families, however, these are tough times. That is why we have taken substantial steps to protect living standards and to ensure we support our poorest and most vulnerable families. That is why we secured the largest ever cash rise in the basic pension and why we uprated working age benefits by 5.2%, protecting the real incomes of the poorest. We are taking the same approach as we reform our welfare system, targeting support where it is needed most.

Tackling the deficit in a fair way means that we have to ensure that tax credits are targeted at our poorest and most vulnerable families, unlike the path taken by the previous Government, who spent more than £150 billion on tax credits and let nine out of 10 families be eligible for them. That is a staggering, untargeted and unsustainable level of spending and it is right and fair that we should reform it.

Let me turn to the working tax credit. It is not fair that a couple with children can claim the credit if one partner works 16 hours, whereas a lone parent has to pull in the same time on their own. Increasing the working hour requirements for a couple is entirely fair. It is right that they should put in more hours than a lone parent before receiving the working tax credit. That also creates a clear work incentive signal, which many Members have sought in this debate, to potential second earners who could benefit from tax credits if they moved into work or increased their hours—and hours are available. Let me answer this one. In the quarter to January, there were 11,000 vacancies across the economy, meaning that 1 million people moved into work. That paves the way for the principles of universal credit because work must pay.[Official Report, 6 March 2012, Vol. 541, c. 9MC.]

At the same time, we are right to reform child benefit to target it towards those families who need it the most, rather than millionaires. I fully understand that it is a vital income boost, but it comes at a substantial cost to the Exchequer, including more than £2 billion a year in payments to higher rate taxpayers. It is right that we should refocus resources where we need them most, and that means taking the tough decision to withdraw child benefit from families with a higher rate taxpayer, because it is simply not fair that working parents on low incomes should subsidise child benefit for millionaires.

None of these points ignores the fact that across the board, we know that this will be a tough year for households. That is why we have gone even further to support families and businesses across the country, limiting the increases to Transport for London and regulated rail fares and funding South West Water to enable it to cut bills by £50 a year for households that face the highest water bills in the country. We are helping pensioners, setting aside an extra £675 million for local authorities in England that freeze or reduce their council tax, deferring the fuel duty increase that was due to take effect on 1 January to August this year and cancelling the further increase for August. As a result, tax on petrol will be a full 10p lower than it would have been under the shadow Chancellor’s plans, meaning families with the average family car will save £144.

As we fix the failures of the past and repair our economy, we are committed to supporting families across the country. It is a tough challenge to ensure and secure our economic stability and to lay the foundations for sustainable growth, but in our determination to do so and to restore the economic prosperity of this country, we will put fairness at the heart of our recovery. We are protecting living standards for the poorest and most vulnerable families by lifting millions out of tax, taking steps to reduce the cost of living and refocusing welfare on those who need it most. Yes, that means that those on the highest income will bear the heaviest burden as we pull together to tackle the deficit, but it is right that those who can contribute the most should do so. A fair and sustainable recovery demands leadership, and that is what this Government are providing.

Question put.

The Economy

Karl Turner Excerpts

Tuesday 6th December 2011 Commons Chamber

[Matthew Hancock (West Suffolk) (Con)]

I shall continue directly from what was said by the right hon. Member for Wolverhampton South East (Mr McFadden). Our country faces very difficult economic times, as does the continent of Europe. In recovering from a debt crisis throughout the west, we face difficult challenges. I listened with great interest to the right hon. Gentleman’s speech. It closely followed the line of argument that was put forward by the right hon. Member for South Shields (David Miliband) in a speech last week. The right hon. Member for Wolverhampton South East recognised the scale of the problem and the need to deal with the deficit. Some of his suggestions were sensible; others I would not follow so closely. None the less, he was engaged in the economic argument. People across the country want to see politicians engaging directly in the economic argument about how we deal with the problem that exists now. I am not talking about the forecast that was set out before the credit crunch in 2007 and before the last election. Incomes are 14% smaller than anticipated, which is a serious problem. Most of the blame rests with the previous Administration, so it is absurd to make party point-scoring interventions on this particular issue. This is an important argument with which to engage, which is why I am so disappointed by the arguments that were put forward by the shadow Chancellor and the Labour party; they completely failed to engage in the seriousness of the economic debate.

I should like to tackle three issues that show just how much the Opposition arguments miss the point. I will not dwell on the fact that the Opposition seem to believe that borrowing is in and of itself a good thing and I will not set out any further than has been set out already the chaos of their euro policy—a policy that was changed from the Dispatch Box in response to an intervention. However, I will set out the complete failure of the Opposition on three specific points.

[Karl Turner (Kingston upon Hull East) (Lab)]

Before the hon. Gentleman moves on to his next point, will he accept that economic growth was choked off well before the eurozone crisis? Government Members were being warned about the situation by many people. They were even warned by me, and I have very little knowledge of the economy.

[Matthew Hancock]

I certainly accept that growth and the protection of the economy will be difficult because we are escaping from a debt crisis in which we had the biggest boom and the biggest bust. Certainly there are some very important domestic causes of our problems. The massive boom was funded by borrowing—both by the Government and in the banking sector. I also accept that inflation, and especially commodity price inflation, has had a negative impact on the economy as set out by the OBR. Moreover, the Greek crisis broke in the weekend after Labour had lost the election, but before the coalition was formed. The then Chancellor set out that Britain should participate in bail-outs, a position from which this Government have extricated themselves. The euro crisis certainly has had an impact and it broke in May 2010.

My first specific point is that I have not yet had an answer to a question that I have been posing on TV, on the radio and in this House, which is how can spending more money lead to lower borrowing?

Autumn Statement

Karl Turner Excerpts

Tuesday 29th November 2011 Commons Chamber

[Mr Osborne]

I pay tribute again to my hon. Friend and the other MPs in the area, including my hon. Friend the Member for Beverley and Holderness (Mr Stuart) who first raised this issue with me some years ago.

[Karl Turner (Kingston upon Hull East) (Lab)]

What about me, George?

[Mr Osborne]

Absolutely, I happily pay tribute to all the MPs of north Lincolnshire and Humberside who have campaigned for the reduction of the tolls. This was an injustice. The bridge was built many years ago and the debt was paid off, but the tolls were still very high. I am glad that we have been able to help. Along with our enterprise zones in Humberside and our commitment to the renewable energy industry in the area, this will really help the economy.

Fuel Prices

Karl Turner Excerpts

Tuesday 15th November 2011 Commons Chamber

[Mr Clarke]

We are where we are.

What the Chancellor does on fuel duty increases next year could make or break many people’s ability to go about their everyday lives, whether they are looking after their family or running a business. Failure by the Government to take effective action would mean winding the clock back on travel and mobility to a time when the freedom of the road was the preserve of the middle class. That cannot be right or fair. It would be a retrograde step for my constituents and would place their finances in an intolerable position.

With 80% of the population living in a car-owning household, a car is now a necessity, not a luxury. Unlike here in London, where vast transport links provide the necessary infrastructure for people to live their lives effectively, in constituencies such as mine people use and rely on their cars daily. Lower-income families, elderly people and those living in rural areas will be the most adversely affected and hit by rising fuel prices. In September, the then Secretary of State for Transport suggested that the railways had become a rich man’s toy. If that is the case, how can the Government’s policy, which is allowing exorbitant fuel prices literally to drive people off the roads, be justified?

Despite the Government’s seemingly generous gesture of a 1p cut in fuel duty, the public will simply not be fooled. The simultaneous increase of 2.5 percentage points in petrol tax that accompanied the VAT rise from 17.5% to 20% in January makes a mockery of the Government’s proposal. Their meagre attempt to placate motorists will benefit only the Treasury.

The fuel duty stabiliser has not shielded drivers from pump price volatility. That is why I believe that the Government need to take real urgent action now to help ease the squeeze on struggling families and kick-start the economy by temporarily reversing the VAT increase.

[Karl Turner (Kingston upon Hull East) (Lab)]

Will my right hon. Friend give way?

[Mr Clarke]

I am sorry, but I will not.

I know that when times are tough, tax revenues are seen as vital to the Treasury. My constituents know that, too, because most of them have been through tough times. However, let us be clear that those revenues cannot be loaded on to the backs of the poorest and most vulnerable in our society. It is they who are suffering most from rising fuel prices, and it is for them that the House ought to speak tonight.

[Andrew Bingham (High Peak) (Con)]

First, I add my congratulations to my hon. Friend the Member for Harlow (Robert Halfon), who is no longer in his place, not only on securing the debate but on the tenacious way he has pursued the issue relentlessly since his election last year.

I rise to support the motion and highlight the extra impact of fuel prices on High Peak. We have a large number of quarries, all of which produce the finest quality limestone in the country. That limestone has to be moved by road or rail, but predominantly by road. Quarries have to be where the stone is, so they cannot be moved around. I wish to tell the House a short tale about a constituent of mine, Mark Pearson, who operates his own wagon. He is a single operator who carries 17.5 tonnes of limestone with every load. In the past three years his fuel bill has increased from £1,600 a month to £3,200 a month. That huge increase in his overheads has to be borne by somebody, whether by Mark himself or the end users of the stone. Such overheads will restrict employment and business growth.

[Karl Turner]

The hon. Gentleman makes a powerful point on behalf of his constituent, who is clearly being squeezed. Did he bother to ask his constituent how much the increase in VAT is costing him?

[Andrew Bingham]

As I am sure the hon. Gentleman is aware, many businesses are registered for VAT and so will be able to reclaim it. It is the other tax that is the addition to their costs.

[Karl Turner]

What about his employees?

[Andrew Bingham]

If the hon. Gentleman had been paying attention, he would know that I said my constituent was an owner-operator with his own truck.

[Andrew Percy]

If that owner-operator did have employees, does my hon. Friend think that he would be happy with the six planned rises under Labour?

[Karl Turner]

What about VAT?

Treasury

Karl Turner Excerpts

Tuesday 21st December 2010 Commons Chamber

[Fiona Bruce]

Thank you, Mr. Deputy Speaker.

I believe that financial literacy is an essential element of every young person’s education. Including it in the curriculum would decrease the cost to so many people—and to the nation—of personal debt, family breakdown and ill health. Even more important, it would enable all young people to embark on adulthood with a vital tool, and to realise their full potential in life. I hope that the Minister agrees that this is a vital issue that we need to address sooner rather than later.

[Karl Turner (Kingston upon Hull East) (Lab)]

On a point of order, Mr. Deputy Speaker. Is it in order for the Government to send a Whip rather than a Minister to respond to the debate?

[Mr Deputy Speaker]

Members may be disappointed that no Treasury Minister is present, but let me say in fairness that the Whip is a Minister. He is part of the Government, and he has the right to speak from the Front Bench. That is the position. There may be disappointment, but I am sure that we shall hear full and thorough answers. We all look forward to the response from the hon. Member for Scarborough and Whitby (Mr Goodwill).

Autumn Forecast

Karl Turner Excerpts

Monday 29th November 2010 Commons Chamber

[Mr Osborne]

I know that a number of concerns have been raised about the FSA’s review of that area. Obviously, it is an independent regulator, but I have made sure that those concerns have been drawn to its attention.

[Karl Turner (Kingston upon Hull East) (Lab)]

Does this apparent good news mean that the Government can now spare the blushes of the disgraced Deputy Prime Minister and of Government Members by scrapping plans to hike university tuition fees, or is this really about pure ideology—rich kids can afford to go to university and poor kids cannot?

Oral Answers to Questions

Karl Turner Excerpts

Tuesday 12th October 2010 Commons Chamber

[Justine Greening]

Such areas would have faced a jobs tax with higher national insurance, higher corporation tax rates, lower economic confidence and, quite possibly, higher interest rates.

[Karl Turner (Kingston upon Hull East) (Lab)]

15. What representations he has received on the new arrangements for child benefit which will apply to one and two-parent families.

[The Exchequer Secretary to the Treasury (Mr David Gauke)]

The Chancellor has received a number of representations on the planned changes to child benefit. It is not the Government’s practice to provide details of all such representations.

[Karl Turner]

Does the Minister agree with my constituent Christopher Sumpton, who points out that it is grossly unfair for a single mother earning £44,000 a year and supporting three children to lose her child benefit, given that the next-door neighbours earning £80,000 will not? Will Treasury Benchers explain why the Government are attacking women in this savage way?

[Mr Gauke]

As I said earlier, we do not currently have the capability to examine the situation on a household basis, but we do need to make difficult decisions. If the Opposition want to oppose each and every cut, including in the child benefit that is given to some of the wealthiest in society, they can take that position, but we are prepared to take those tough decisions.

Budget Resolutions and Economic Situation

Karl Turner Excerpts

Thursday 24th June 2010 Commons Chamber

[Karl Turner (Kingston upon Hull East) (Lab)]

I start by welcoming you, Mr. Deputy Speaker, to your position. One of the first tasks that I undertook when I came into this place was to put my cross against your name, so welcome. I also congratulate hon. Members on their maiden speeches. Members will share with me the sense of privilege and much pride that comes with entering this magnificent Chamber. That pride brings with it a real sense of responsibility, which I will keep to the forefront of my mind throughout.

However, the happiness of the occasion is tinged for me with some sadness and real fear: sadness because I do not take my seat on the Government Benches where the important decisions that affect my constituents will be made, and fear for the constituents whom I represent, and worry that the choices already made by the coalition will severely damage the good that has come from 13 years of a Labour Government. Those choices are driven by pure ideology, with consequences that are likely to be far-reaching and long-lasting. My constituency has benefited tremendously from a Labour Government, and I fear the clock being turned back to Tory time.

Hull East, or East Hull, as it is known to those of us who were born and bred there, is a fantastic place. Its greatest asset is its people. East Hull folk have a reputation for straight talking, and I hope that I bring with me to the House that special quality. East Hull people are enriched by many excellent qualities, among which are their good sense and sound judgment. I am delighted that they employ those when they vote Labour, which is why I am here.

To that end, I have the benefit in my constituency of the hard work and tireless commitment of many excellent Labour councillors, led by the leader of the Labour group, Councillor Steve Brady, and I thank them for their service. I can also tell the House that in the past few days we have had a new councillor on the Labour benches in the chamber in Hull—Councillor Maureen Bristow. She crossed the floor from the Lib Dems because, in her words, she did not come into politics to implement Tory policy that hit the hard-working and the poorest people the hardest. That sentiment is shared by people in Hull and throughout the country who have previously voted Lib Dem but will never make that mistake again.

I am often reminded that I have very big boots to fill, and I acknowledge that in paying tribute to my predecessor, John Prescott. It was 40 years ago on the 18th of this month that John was elected to the House. In that time he has been credited with many achievements, perhaps too many to mention in the short time that I am permitted to speak. Throughout his time here, he was blessed with the loyalty of his agent, Harry Woodford, who still attends Labour party meetings at the age of 93. I know that I can rely on the same loyalty from my agent, Howard Flitton. He is much younger than Harry, but, if I stay in the House as long as John, by then he will be about the same age.

While John was a Member, some say that he delivered many knockout blows. He was very faithful to his constituents and to the Labour party, and I hope to emulate that. Hon. Members might recall that in the 2001 general election, while on the campaign trail, John was involved in an incident in Wales. When his then boss, Tony Blair, asked him, “John, for heaven’s sake, what were you doing?” I am told that John replied, “Well you told me to go out there and connect with the electorate, so don’t blame me now.” He was straight talking, and he had a very good left jab.

John Prescott has a lot to be proud of. He rose from being a seafaring steward to the dizzy heights of Deputy Prime Minister, following the Labour party’s magnificent election success in 1997. I feel compelled to mention that, unlike the incumbent Deputy Prime Minister, John gained his place in government through the electorate and the then leader of his own party. It was not gained through the desire for power, whereby 22 Government jobs, with gold-plated pensions, have been traded for many thousands of public sector jobs—a desire for power that I predict will not come without a great cost to the right hon. Member for Sheffield, Hallam (Mr Clegg) and his party.

My predecessor is very different from the right hon. Gentleman, but there are some comparisons. I say that with some apprehension, because I am clearly at risk of offending my predecessor, and I do not suggest for even a second that John has, or will ever, utter the words, “I agree with Nick,” but interestingly enough at the general election he and the right hon. Gentleman asked the electorate to vote for their respective parties in order to stop the Tories ruining the economic recovery that was set in train by the previous Labour Government. Like the electorate, I have no recollection of the current Deputy Prime Minister saying, “I agree with Dave.” While making comparisons, however, I seem to share the Prime Minister’s sense of humour, because like him, I and many other Opposition Members have a new favourite joke. The former Deputy Prime Minister—the one whom the electorate wanted—will soon continue in the other place with his tireless commitment to his interests, and I wish him well there.

Indeed, I do have big boots to fill. The last Hull-born MP to represent the area was the great William Wilberforce, who began his political career in 1780 when he became the independent MP for Yorkshire, which at the time covered some parts of my constituency. He was a truly honourable man, who led the parliamentary campaign against the British slave trade, and after some 26 years the Slave Trade Act 1807 was passed. When Wilberforce left the House in 1826, he continued his campaign, and just three days before he died he learned of the passing of the Slavery Abolition Act 1833.

East Hull has a record of electing Members with seagoing experience. In 1945, the area elected Harry Pursey, a former naval commander, and of course my predecessor was a merchant seaman. Although I have no seafaring experience, I am the son of a former seaman, so to that end the tradition continues.

I am very proud of my roots. I was educated in a state comprehensive, and my school suffered from some shameful under-investment during the previous, 18-year-long Tory Government. I left school without having achieved much academic success, but after the first term of the previous Labour Government and their agenda for lifelong learning I had the opportunity and confidence to study law at the excellent university of Hull. I was eventually called to the Bar in 2005.

Hull has many things to be proud of, not least the excellent quality of its rugby league. In the east we have Hull Kingston Rovers and in the west Hull FC, both of which rival each other in the super league. We also have Hull City football club. Not unlike another team that are extremely close to my heart, we suffered last season what I hope turns out to be a short-lived demotion. The team were led by, I often argued, an excellent leader in Mr Brown—that is, Phil Brown.

Despite the coalition Government’s attempts to convince each other and the wider electorate that we got it wrong, Labour Members sit on this side of the House proudly and with our heads held high. We have an excellent record to defend. I am particularly proud of the national minimum wage; our investment in the NHS, with 85,000 more nurses and 32,000 more doctors, and cancer care that is again becoming the envy of the world; record numbers of students from normal backgrounds like my own going off to university; Sure Start; the winter fuel allowance; equality legislation set in train by the Labour party in government; the historic Good Friday agreement and the peace in Northern Ireland that it brought; tackling pensioner poverty; child tax credits; the abolition of section 28; the introduction of civil partnerships; massive investment in social housing; free bus passes for over-60s; free swimming for under-16s and over-60s; free nursery places for three and four-year-olds; and Building Schools for the Future.

On the economy, I am proud that we took decisive action when the global economic crisis hit. I am proud, too, that we saved the banks from inevitable collapse and invested in the economy, leaving the new coalition with an economy that is in growth. Make no mistake about it—we did mend the roof when the sun was shining. The vast majority of those policies were opposed by the new Government; some have already gone in the short time that they have held office.

I vow to hold this Government to account while I sit on this side of the Chamber, but in doing so I remember the responsibility that I have to my constituents. If the Con-Dem coalition gets it right, I will support it, but when the policy is wrong, when it is for ideological reasons, and when it adversely affects my constituents, I shall challenge it at each and every opportunity.