Education Funding
Kwasi Kwarteng Excerpts(5 years, 11 months ago)
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Kwasi Kwarteng (Spelthorne) (Con)
I am pleased to follow the hon. Member for Bethnal Green and Bow (Rushanara Ali). There is a sense of déjà vu in these debates about public services. We have rehearsed these arguments over many years, but I still find it extraordinary that when we try to bring a degree of order and sanity to public finances, the Labour party—which wrecked the economy and completely destroyed the public finances—makes the specious argument that we have somehow wrecked public services. In fact, we have preserved the ability of this country to meet the level of public service requirement that our constituents and the country expect, by having a sound footing on the economy. It is ridiculous that the Labour party should constantly harp on about devastating cuts when we had to save the economy.
James Cartlidge
My hon, Friend is making a typically robust speech. This debate is about the next generation. Surely the moral point is that it is precisely the people in education today—in our schools and colleges—who will have to repay the national debt that will be accumulated if we are not prudent and careful with public expenditure. Does my hon. Friend agree?
Kwasi Kwarteng
I am delighted that my hon. Friend is talking about public finance, because we also have to talk about education and look at the record of the previous Labour Administration. In the course of effectively destroying the public finances and leaving us with the biggest deficit in our peacetime history, Labour presided over an absolute fall in standards in our schools. This has been well documented by the programme for international student assessment tables and other international records. It was the case—[Interruption.]
Madam Deputy Speaker (Dame Rosie Winterton)
Order. Not too much shouting from a sedentary position, please.
Kwasi Kwarteng
Labour Members are shouting because they do not like to hear the truth—it is embarrassing to them.
We looked at reading statistics and we looked at mathematics. The coalition Government that came in in 2010 not only managed to begin to reduce the deficit but drove up standards through the admirable work of my right hon. Friend the Member for Surrey Heath (Michael Gove). When he was Secretary of State for four years, he managed to begin to drive up standards in schools. He reorganised a lot of the qualifications. On that note, I am delighted about the introduction of the new T-levels, showing innovation and a new approach. We introduced free schools, which have been very successful.
Kwasi Kwarteng
There have been more than 400, and each of them has been—[Interruption.] The hon. Gentleman scoffs, but each of them has been extremely successful and is driving up standards in its locality.
I was particularly surprised to hear that the shadow Chancellor, the right hon. Member for Hayes and Harlington (John McDonnell), is actually campaigning to try to preserve the free school in his borough because it is a beacon of excellence. This is the kind of hypocrisy—“Do as I say, not as I do”—that we have learned to expect from Labour. It is an absolute scandal that someone like the right hon. Gentleman should be against free schools but actually support one in his own constituency. That school is an excellent initiative. He is being a very good constituency MP, and I am delighted to see that he is supporting a free school in his constituency.
The facts of the matter are very clear. What the coalition Government and the current Conservative Government have managed to do is to bring some degree of order to the public finances while driving standards higher in education. My right hon. Friend the Secretary of State has suggested that we have 1.9 million more pupils in outstanding schools. [Interruption.] These are facts. I know that Labour Members do not want to hear those facts. We have also heard—[Interruption.] I am surprised that I am eliciting a running commentary from the shadow Secretary of State. It is absolutely extraordinary. She does not like hearing the truth, does she? [Interruption.] She really does not like it, so she will not let me continue my speech.
Madam Deputy Speaker (Dame Rosie Winterton)
Order. Really, can we just take the temperature down a little bit here?
Kwasi Kwarteng
Thank you, Madam Deputy Speaker. I have never, in my eight years in Parliament, actually had a running commentary on any speech, so clearly I must have hit a nerve. It is absolutely extraordinary, this constant chuntering.
The facts are very clear. We have had higher standards in the past eight years—[Interruption.] I do not think that is particularly funny, if we look at the wreckage of the last Labour Government. We have a comprehensive spending review next year when we will be allocating even more resources to education and to schools than ever before. We have more teachers. We have higher attainment. We have higher standards than ever before. In the context of the disaster that Labour presided over in respect of the public finances, what this Government have done over the past eight years is to be commended.
In my constituency there are six schools in the maintained sector—very good secondary schools. Every single one of them has seen standards improve and has seen additional amounts of money. We have seen, with one exception, additional amounts of money put to pupils’ use for books, attainment and driving up standards. I would just say that we in Spelthorne would like to see some degree of equalisation between the London allowances that London teachers have and the amount that teachers in our borough receive. We are just outside London. Many of our teachers feel that because they do not have London weighting, even though the costs in the borough are level with those in London, we would like some sort of adjustment, if that were possible. Overall, though, while the picture is not perfect—very little is perfect—we are on a much, much better footing than was ever the case, certainly when I started in my role in 2010.
James Cartlidge
I was referring to what I have heard in my constituency. That was obviously not specific to the hon. Lady’s case, about which I cannot possibly comment. I am simply saying, given the feedback I have had, that although there are issues of deprivation, there are also parents who are not taking seriously enough their responsibility to read to their children, which is leaving them with lower standards. We have to say that, because it has truth in it, I am afraid.
I do agree with the hon. Lady about social mobility. My right hon. Friend the Secretary of State is absolutely right about the importance of education spending. It is the one form of public expenditure that can ultimately enable people to better themselves, rise up in life, and go on and make the most of their natural talents. Obviously we all support school funding, and we want to see our schools adequately funded.
It is shocking when we hear a speech from an Opposition Front Bencher that does not mention the way in which the cake is divided. There are schools in counties across England facing this problem and many different political representations have been made, but overwhelmingly the shire counties receive a very poor share of the cake. We can increase the whole thing, but if we want to see more spending in Suffolk, we have to change the formula. That is why I am incredibly grateful to the Government for going through the pain and the difficult calculations to come to a formula, which, when it comes in, will see my schools in South Suffolk receive an average of 5.1% more funding. That is generous, and it will enable us to give more support to the children we have been talking about.
Kwasi Kwarteng
Will my hon. Friend enlighten the House about the fact that all these plans would make no sense if the economy was wrecked once again, as the Labour party is too often wont to do?
Mike Kane
I will not give way now because I want to get through the vote of thanks.
Normally I would thank people on my side of the House—I thank you all; well done, the lot of you—but what I really want to do is to thank some Conservative Members, such as the Secretary of State himself. He fails to stand up and say “little extras” to anyone. Just to let him know: the cuts in Hampshire are £16.8 million, Damian. [Interruption.]
May I concur with the hon. Member for St Ives (Derek Thomas) about how well schools and schoolteachers have done to commemorate the armistice brilliantly this weekend and over the past few months? However, I also tell him that the cuts to his local authority are £14.2 million since 2015.
I now come to the hon. Member for Spelthorne (Kwasi Kwarteng)—this is my favourite bit—who makes the same speech every time. Honestly, there is a sparsity of facts, and he does need to mix it up once or twice.
Kwasi Kwarteng
The reason why I make the same speech every time is that the hon. Gentleman finds it very difficult to appreciate the force of the argument, which he never addresses.
Mike Kane
Following a speech that lacked so many facts, I will give the hon. Gentleman one: Surrey, which covers his constituency, has faced £14.2 million of cuts since 2015.
My good friend the hon. Member for South Suffolk (James Cartlidge) was a great left winger on the parliamentary football team as we beat the military veterans today, but he was no left winger in this Chamber. He needs to mix it up as well, because there was a sparsity of facts. Suffolk is suffering from £7.8 million of cuts.
The hon. Member for Torbay (Kevin Foster) actually spoke quite eloquently and has a good grasp of schools and what is needed in his constituency, but Devon is facing £16.3 million of cuts.
Education and Social Mobility
Kwasi Kwarteng Excerpts(7 years, 11 months ago)
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Kwasi Kwarteng (Spelthorne) (Con)
I am very grateful to you, Madam Deputy Speaker, for calling me towards the end of this interesting debate.
I have noticed that there is a gaping hole at the centre of the Opposition’s case on grammar schools. If grammar schools are based on a good principle, why would Labour oppose extending them? And if they are based on a bad principle, why is it not committed to abolishing them? Surely, if it is a good idea, a cap or ban is a crazy way to proceed if we want to widen opportunity and choice. If it is a bad idea, why should we allow grammar schools to exist? Why should we allow the existing grammar schools to continue providing a bad education, if indeed they are bad schools and it is a bad principle? It cannot be the case that the number of grammar schools in this country as of 2016 should be fixed in aspic for ever more and never increase. That would be a very illogical way to proceed.
Secondly, I want to pick up on the idea of elite education. My right hon. Friend the Member for Wokingham (John Redwood), who I am glad is in his place, made the point that everyone in the House is happy to see elite soccer teams, musicians and gymnasts educated in private facilities, private schools and even some state schools on a selective basis, yet when it comes to a broad education, somehow it is a taboo issue.
The other issue raised was the fact that we have independent schools. Even if we abolished every single grammar school in the country, we would still have a system in which private schools could be attended by very wealthy—and often very talented—people, accentuating existing differences and inequalities.
Labour’s position is entirely incoherent. It has not given a single indication of what it wants to do with grammar schools. Does it agree with them in principle, or is it against them? If it is against them, why does it not have the courage to say publicly that it will abolish them?
The proposals in the Green Paper are actually quite mild. No one is suggesting that we go back to the 1950s or some sheep and goats, be all and end all 11-plus. Rather, we are saying that there should be diversity of provision. People should be able to access selective education not simply because they can afford to but because they have the abilities and aspiration to do so. We want a diverse system from which all children can benefit.
Schools that work for Everyone
Kwasi Kwarteng Excerpts(8 years, 1 month ago)
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Justine Greening
Again, the right hon. Gentleman was part of the Government that had 13 years to tackle the issue he has just set out and did nothing. The reality is we should be enabling parents to have more choice, including having selection and grammars if they want them, but we should also be challenging grammars to do more on reaching out to disadvantaged children. As we have heard, in Bournemouth and other parts of the country that is already happening. We should be seeing more of that, not simply trying to avoid the debate all together.
Kwasi Kwarteng (Spelthorne) (Con)
I am very grateful for my right hon. Friend’s statement, which is an encouraging step in the right direction. Does she share my anxiety and frustration at the fact that so many of the objectors to this scheme are themselves the products of selective education? The French have a saying: “Le patron mange ici”, or the patron of the establishment—usually a restaurant—eats here, and is it not disappointing to see so many people who are the products of selective education say, “It’s alright for us, but it’s not alright for them”?
Justine Greening
I tend to agree with my hon. Friend, and I would add that on the one hand there is a vehement dislike of the status quo while on the other hand apparently an objection to bringing forward any reforms to change it.
Academies Bill [Lords]
Kwasi Kwarteng Excerpts(14 years, 3 months ago)
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Kwasi Kwarteng (Spelthorne) (Con)
Does the hon. Gentleman believe that the content of the Bill differs significantly from legislation produced and speeches made by the former Prime Minister, the former Member for Sedgefield?
Tom Blenkinsop
The point is that we do not know. Because of the pace at which we are dealing with the Bill, we do not know what some elements of it actually mean. We have no definitive evidence. Members on both sides of the House have gone into some detail, but have not provided enough specificity for us to discuss it.
Many support staff, unlike teachers, are not paid during the school holidays. The SSSNB was given cross-party support in the Apprenticeships, Skills, Children and Learning Act 2009, and has a broad range of school, local authority, religious and employee representation. The Bill would effectively transfer workers to the private sector, unilaterally, without due consultation or consideration. It has the potential to undermine the previous consensual approach of all parties to the creation of the SSSNB. That is certainly not an indication of the “new politics”.
However, despite my obvious criticism—and if we are to take the coalition Government at their word—we can agree that there may be merits in widening the educational family beyond the tried and tested mainstream of the LEA. In the past, academies have had a variety of sponsors. Some, to which I have referred, have had a particular religious conviction. Some have been part of higher education—for instance, Teesside university, which is committed to becoming a partner in the sponsorship of Freeborough college, in the East Cleveland part of my constituency. The NHS is also involved, but most sponsors have come from commercial business, although given the coalition’s recent pace and predilection, the NHS may join the long list of private enterprises. Commercial business sponsors range from Lord Harris, of carpet warehouse fame, to companies such as the United Learning Trust, which has links with major public schools, and firms such as Vodafone, Barclays and Honda (UK).
If representatives of one side of society and commerce can be partners in schools, what about those on the other side? I should be fascinated to hear the Minister’s reaction to a new concept that I want to float. I simply suggest that the Trades Union Congress, or individual TUC unions, be encouraged to set up a trade union school or schools. We might also ask representatives of the co-operative movement—an organisation that was dedicated to mutualism, harmony and fairness centuries before Cameron’s “big society” road to Damascus—whether they would be interested in being part of a wider educational family.
The trade unions have a long history of propagation of adult education through institutions such as Ruskin college in Oxford. The TUC still has its own education department, and individual trade unions, with TUC encouragement and help from local learning and skills councils, have developed successful and widespread union learning campuses in workplaces where they have recognition agreements. The co-operative movement is historically associated with early socialist Sunday schools designed to give children a broader view of the world than could be obtained through Victorian churches, and even today it helps to sponsor educational development in parts of the developing world where it sources food for consumers.
The country, and even the coalition Government, can live with co-operative forms of enterprise. The Government could even float the concept as a way of managing former central or local state provision. If a state can ensure our children’s education with car dealers, carpet salesmen and other wider commerce, why should it not do the same with the democratically elected expression of working people, the trade union movement?
I look forward to the Minister’s response to the points that I have made.
Charlotte Leslie
The right hon. Gentleman has made an interesting point, which I will take on board.
Kwasi Kwarteng
The Soviet Union dissolved in 1991, but my right hon. Friend the Secretary of State was talking about comparisons between 1999 and today. I just wanted to put that on the record.
Charlotte Leslie
My hon. Friend makes a point that I was not going to make for the sake of making progress in my comments, but I thank him very much for that clarification.
Some clarification is required in respect of the Bill as well. There is not some kind of compulsion whereby politicians are driving schools to claim these freedoms. The Bill simply seeks to lift the lid on the ambition, desire and passion that already exists, such as in outstanding schools whose head teachers have said to me, “Isn’t it amazing that if I was at a bad school I’d be able to get the freedoms I want to run my school, but we are just doing too well to have them?” The Bill removes that perverse incentive, and it enables parents and—to mention a group that we have not discussed enough in our debate—teachers to act: it enables parents and ideologically driven teachers who want to help the most vulnerable in our society by starting small schools, along the lines of the American charter schools, in those communities that most need them.
Many of the people who express an interest about this subject to me are those very teachers. They are the kinds of teachers who may be involved in Teach First and the Future Leaders programme. They are people who desperately want to improve the lot of those children who are on free school meals in the most deprived parts of our communities. It deserves a little more recognition in this debate that the Bill aims to lift the lid on passion, belief and desire that already exist to improve education. It is not about compulsion; that is not what we on these Benches are all about.
I understand the concern felt on the Opposition Benches that it is the good schools that will benefit from academy status. I would share those concerns if very substantial amounts of capital investment were to be going into those very good schools, but that is not the case. The good news is that there can be improvement without enormous injections of taxpayers’ money; after 13 years, that obviously comes as very good news to all Members. That improvement will allow good head teachers who lead outstanding schools to have the freedom to innovate, and also to offer their innovations to struggling schools. One aspect of the Bill that I particularly welcome is that it will not only encourage but require good schools that take on academy status to link up, not with outstanding schools as the shadow Secretary of State rather oddly implied, but with the weakest schools that most need that help. That point needs reiterating.
Another aspect of the Bill that should be highlighted is the fact that, for the first time, academy proprietors and sponsors will be subject to freedom of information legislation. Freedom of information has, of course, made the past year and a bit extremely rocky for this House, but, all in all, I think it is an extremely good thing and I am extremely pleased that that kind of public accountability will apply to academies and free schools so that we have a proper test of whether they are actually doing what we want and expect them to do.
I was around in the corridors of this House—although not as a Member, and nor, alas, in the corridors of power—when the Education and Inspections Act 2006 was making its progress as a Bill, and I remember that when the concept of trust schools was first floated there was a huge amount of sincere panic on the Labour Benches that that would open the floodgates and that it would be the end of the educational world and we would all be going to hell in a handcart because local authorities would not be able to control schools as they had previously. Now, four years on, has the world ended? No. Four years on, has trust status enabled Orchard school in my constituency to link up as a trust with the Bridge learning campus, which is driving very good improvements? Yes it has. Therefore, I say to Opposition Members that there was a lot of panic about the 2006 Act, and I also suspect that a lot of what is being said now is conjecture and expressions of fear about the liberation of forces that are not Government forces. I hope that alleviates some of the concerns among those on the Opposition Benches.
It is important not to see this Bill in isolation. We cannot solve everything through structural reform alone. It is certainly part of the equation, but we need to remember that there are far more measures in the coalition manifesto that tackle standards issues—and standards issues in respect of struggling, weak schools. If we were to see this Bill alone as the sole coalition offering on education, some of the concerns expressed by Opposition Members might carry more weight, but it does not stand alone. We also have reforms for improving discipline in struggling schools, which is one of the things that makes teaching in such schools so very difficult. Also, the pupil premium will send money directly to those children who most need it; of course there is work to be done on that, but that is what this House exists to do.
One development that I find particularly concerning, and scandalous, is that over the past 10 years pupil referral units have become repositories for children with special educational needs at the same time as special schools have been closed. I know no one wanted that to come about, but the House must address that tendency, and I hope the added responsibility for new academies to take care of children with SEN will improve the situation. I also hope that some of the measures we will be taking forward will look at pupil referral units alongside other society and voluntary organisations that can perform that function better.
Building a High-Skilled Economy
Kwasi Kwarteng Excerpts(14 years, 4 months ago)
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Chris Williamson
I beg your pardon and thank you for that correction, Mr Deputy Speaker. I will endeavour to ensure that I do not make that mistake in future.
Building a high-skilled economy is vital to the future prosperity of our country. I represent a constituency that is founded on a high-skilled economy. In a previous speech in the Chamber, I referred to the occasion when Jeremy Paxman said, “Why can’t everywhere in Britain be like Derby?” That is because we have been successful in Derby in developing a high-skilled economy. We were fortunate in having Rolls-Royce and Bombardier, which have done so much to create a high-skilled economy, in the city. The country could learn a lot from Derby.
We have invested heavily in the city, thanks to support for training from the Labour Government. We have an excellent university and two new colleges, which undertake extremely important vocational training, preparing young people for the world of work. We built 13 new schools under the Labour Government and employed many new teachers and teaching assistants, who are essential to developing a high-skilled economy.
However, the Conservative party’s policies are taking the country in the wrong direction if we want to develop a high-skilled economy. The Conservatives are making the same mistakes that were made in the 1980s, when the previous Conservative Government systematically undermined and destroyed manufacturing—the bedrock of the greatness of our nation. They took away opportunities for young people to move into work and get the training that they needed.
Kwasi Kwarteng (Spelthorne) (Con)
In a debate that took place yesterday, the Minister for Universities and Science pointed out that manufacturing had collapsed even further under the Labour Government than under 18 years of the Conservative Government. I quote from memory, but it went from some 22% to 18% of GDP between 1979 and 1997, and had decreased to some 11% by 2009.
Chris Williamson
The hon. Gentleman is being a little unfair. He fails to recognise the huge expansion in the service sector. We can play with statistics, but in the 1980s, there seemed to be a clear policy of undermining manufacturing in this country. The car industry was destroyed and the steel industry was undermined.
Industry (Government Support)
Kwasi Kwarteng Excerpts(14 years, 4 months ago)
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Kwasi Kwarteng (Spelthorne) (Con)
This is the first time I have had the privilege of speaking while you are in the Chair, Mr Deputy Speaker, so I congratulate you on your appointment.
We are in a bit of a déjà vu situation. Labour Members cry about Tory cuts, yet they forget why the cuts have to take place. They are suffering from collective amnesia and forgetting that for the last 13 years they ran this country and the Government on the proposition that they had abolished boom and bust. The former Prime Minister, when he was Chancellor, openly boasted about that. There was a feeling that money would pour in—that there was an inexhaustible pot of gold to be drawn from. It reminded me of Aladdin, who rubbed the lamp and the genie appeared. Labour seemed to think that the genie would appear, they would ask for money and, magically, it would arrive.
Rachel Reeves
Does the hon. Gentleman remember that the financial crisis happened across the whole world? Does he believe that the Labour Government are responsible for the budget deficits in all those countries?
Kwasi Kwarteng
I remember that very well, but I would point out that, in the five years before the crisis that the hon. Lady speaks of, we were running completely needless deficits. We did not have to run those deficits; we did so because of the concerted attempt by the then Chancellor to expand the state and to keep spending money.
Rachel Reeves
Can the hon. Gentleman give us an example of when the Conservative party opposed our spending plans?
Kwasi Kwarteng
During the 2005 election, we were—[Interruption]. If I may continue.
The general Aladdin’s lamp approach was shown to be absurd. As the then Government kept rubbing the lamp and the genie came out, they asked for money, but the genie suddenly became rather less giving. At one point, the genie—in form of the right hon. Member for Birmingham, Hodge Hill (Mr Byrne)—wrote a letter and said, “There is no money. We have run out of money.” The reason why we have done so is simply that we were spending too much.
I have a Methodist background. My mother is a Methodist lay preacher, and she would tell the Sunday school, which I attended, about the seven fat years and the seven lean years. Those hon. Members who know the Old Testament will remember that Joseph had a dream in which he dreamt of seven fat cows and then the seven lean cows. [Interruption.] This is not very complicated; it is quite simple actually, so please bear with me. I know that Labour Members have concentration problems sometimes. I am sorry—it was a long time ago. The pharaoh had the dream and he spoke to Joseph. [Interruption.] This is very important and interesting. He asked, “What does this mean?” and Joseph said very simply, “You will have seven fat years and seven lean years.” The whole point is that we are meant to save money in the fat years, so that we can spend it in the lean years. The Labour Government comprehensively failed to do that. They thought that the fat years would run indefinitely. They thought that they had abolished boom and bust.
The point of telling that simple story is to show comprehensively the reason for the cuts mentioned by the hon. Gentleman—I forget his constituency. [Hon. Members: “Sedgefield.”] I apologise; I was perhaps confusing him with another Member for Sedgefield. The hon. Member for Sedgefield (Phil Wilson) referred to them as Tory cuts, but the simple story of Labour’s failure to rein in Government spending in the boom is why we must make these cuts. They are not coming out of the blue or from savageness.
Phil Wilson
I was pointing out that, because of Government intervention, we were creating jobs, especially in the north-east of England, through the regional development agencies. We were not creating poverty; we were creating growth and prosperity. We took action when we were in government before the last election, and 500,000 fewer people are out of work than if we had not done so.
Kwasi Kwarteng
With respect, the idea that, somehow, our wealth was purely predicated on Government spending is exactly the principle that Conservative Members have problems with.
Matthew Hancock
Is my hon. Friend aware that Great Britain went into the recession with the largest budget deficit in the developed world and that that was nothing to do with the banking crisis but was solely due to the management of the economy by the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown)?
Kwasi Kwarteng
I am fully aware of those facts. The figures show that the ratio of our debt to GDP is 12%. That is higher than any other country in the west. [Interruption.] I am sorry; I stand corrected. The deficit-to-GDP ratio is the highest of any other country in western Europe and, indeed, in the western developed world.
Rachel Reeves
I am sorry to correct the hon. Gentleman again. He is right to correct himself—the deficit, not the debt, ratio is 12%—but is he aware that the deficit figure in Greece stands at 14%? Greece is, I believe, in the western world. Is he also aware that we went into the crisis with the second lowest debt-to-GDP ratio in the G7?
Kwasi Kwarteng
The hon. Lady is being quite clever and fixing the measuring rod.
Gordon Brown, the former Prime Minister, openly boasted of abolishing boom and bust. That was the central claim that he made. He predicated his entire policy on that premise. The premise was wrong. As we all know, and as hon. Members have commented, we went into a recession and we were faced with a huge deficit. That was a huge bust, which the former Prime Minister, in his wisdom, failed to see. That is why we were saddled with the deficit, and why we have had to make some of the tough adjustments to which Opposition Members have alluded.
That context is important. I know that there will be difficult times. I know that up and down the country Opposition Members will bemoan and complain about Tory cuts, but the context demonstrates why the adjustments have had to be made. They were forced upon us by the international environment. My hon. Friend the Member for Stratford-on-Avon (Nadhim Zahawi) mentioned that investors would not buy British Government debt. As a consequence, we have to rein in our spending. That is common sense. It is wrong for Opposition Members to say that we are trying to strangle the baby in its cot and that we are savage and uncaring. It is a matter of practical policy. Without that, we have a bleak future.
Mr Anderson
The hon. Gentleman spoke about fairy tales and Bible stories. Some of us lived the reality. Some of us in this country were starved for 18 years, while others became fat cats. We know that his party is taking us back there.
Kwasi Kwarteng
I am not talking about the 18 years from 1979 to 1997. I am talking about the 13 years in which we lived under Labour.
To finish my contribution, I want to talk about the private sector and the public sector. Someone described trying to grow an economy by focusing on the public sector as a man sitting in a bucket trying to lift himself up by pulling the handle. It does not work. The only way we can have a viable public sector is if we can have revenues coming in from a buoyant private sector. As my hon. Friends have reiterated time and again, it is only by having a prosperous private sector that we can grow our way out of the recession. The message about a strong private sector is clear. It wants less regulation, less red tape and bureaucracy and a clear tax system, and it generally supports the coalition Government and the Government programme. For these clear and simple reasons, I support the Government amendment.
Mr Deputy Speaker
Order. Under the power I have to vary the time limit, I am changing it to 10 minutes.
Mr Alan Campbell (Tynemouth) (Lab)
I welcome you to your new post, Mr Deputy Speaker.
I am not sure about the Aladdin analogy. I am, however, convinced that with the Prime Minister and the Deputy Prime Minister, we are now in the age of the brothers Grimm.
Before I get to that, however, may I congratulate everyone who made their maiden speech today? They spoke with passion, commitment and humour, and all bring something special to this very special place. I want to mention in particular the contribution of my new hon. Friend the Member for Middlesbrough South and East Cleveland (Tom Blenkinsop), who spoke superbly about his predecessor, Ashok Kumar, who was both a colleague and a friend to those of us who were elected before 2010.
I congratulate the Government and, in particular, the Prime Minister. They got the decision on the £21 million for Nissan absolutely right, confirming the investment made by the Labour Government. It offers welcome reassurance to the highly skilled work force, some of whom live in my constituency, to the companies in the supply chain, and to the region as a whole. If the Government insist on revisiting all the spending commitments that were made in the preceding months before the election, I hope that when they do so, they will follow the model that they have developed in looking at the Nissan grant. It is important that they get on with it, because if they do not, they risk sapping the confidence of business in the region.
I want to make it absolutely clear, as did the shadow Secretary of State, my right hon. Friend the Member for Wolverhampton South East (Mr McFadden), that we accept the need for deficit reduction, but we also accept that there needs to be a strategy for growth alongside it.
Kwasi Kwarteng
The hon. Gentleman said that he accepts the need for cuts—for the deficit to be dealt with. Where does he, as a representative of his party, see those cuts falling?
Mr Campbell
I have news for the hon. Gentleman: he is sitting on the Government Benches. It is up to the Government to bring their proposals to this House, and it is for this House to make judgments on them. As my right hon. Friend made clear—
Mr Campbell
I would first mention the battle for savings that every police force has to deliver while protecting front-line services. However, I do not necessarily want to talk about that—I want to talk about the money that was in the budgets under the previous Government for a very good reason.
This debate is not only about BIS but about the whole of Government. I hope that the Minister will have a word with colleagues in other Departments, for the sake of construction workers in my constituency. I hope that we can have a decision on Building Schools for the Future in north Tyneside. Our children deserve the best learning environment, but our construction workers deserve jobs, too. When the last new school in my constituency—Monkseaton high school—was built, more than half the construction jobs went to local people. When the then Leader of the Opposition, now the Prime Minister, went to the school, he praised the building. So let us have some commitment from the Government that gives certainty and ensures that Monkseaton high school was not literally the last new school to be built in my constituency.
There was also money in the regional transport budget, but that budget has been frozen. That has caused me concern, but, more importantly, it has caused concern for local businesses and their representatives. There was £30 million in the budget to improve the A19-A1058 Silverlink roundabout. A driver who turns left at that roundabout goes to the new green technology park on the north bank of the Tyne. If they go straight over, they go to the Cobalt business park—the biggest private business park in the country, which is there because of co-operation between the public and the private sectors in bringing those jobs to the area. If we do not get those improvements, then people who go through the new Tyne tunnel—delivered by the previous Labour Government—will end up in gridlock. A whole host of then shadow Ministers came to look at those roads and made promises to my constituents about what they would do. Well, they are in government now, so they had better start delivering on those promises. If the road network in the north-east is not upgraded, if we are excluded from the rapid rail link, and if the new runway at Heathrow does not take place, squeezing out the regional air links, why would an investor who comes to Great Britain think about putting their money into the north-east given that we do not have a transport network for the future to create future jobs?
I want to concentrate on the regional development agency, which has been mentioned. Before the recession, the north-east had the fastest-growing economy of any region outside London. That did not happen despite Government action, it happened with it, and One NorthEast was part of that story.
Mr Campbell
No. The hon. Gentleman has had his chance.
One NorthEast has been a leading player in the New and Renewable Energy Centre in Blyth and along the north bank of the Tyne, in low-carbon vehicles at Nissan on Wearside, and in the Printable Electronics Technology Centre in County Durham. Every one of those developments had at their heart a level of operation between private investors and the public sector. There may be support for small businesses for local authorities to pick up, but I am concerned that without such strategic action, the big national decisions will go elsewhere. My fear is that that will be bad news for the north-east.
If the Government are getting rid of RDAs in England, as has been suggested, have they spoken to the devolved Administrations in Wales and Scotland about them getting rid of their RDAs? One of the first issues that I took up in 1997 was the case of LG Electronics. That company went to Wales because we in the north-east did not have the money, but the Welsh Development Agency did. LG did not stay there, but Wales pinched the jobs.
Cuts in the RDA budget are already affecting jobs in my constituency: the Seafood Training Centre looks as if it will close its doors. Again, a troop of Conservative spokespersons went to that training agency and said how important it was, but now it is closing its doors, which is another bitter blow for the local fishing industry. That is why the Government need to be much clearer than they have been today about their plans for RDAs.
The Business Secretary said that
“changes depend very much on the reaction of local business and local authorities.”—[Official Report, 3 June 2010; Vol. 510, c. 556.]
I can tell him that One NorthEast has the support of local authorities, five universities, the Northern Business Forum, the CBI, the chamber of commerce, the Federation of Small Businesses and the Engineers Employers Federation, so let us see him get on and back it.
Of course, we know why there is dither: there is disagreement at the heart of the coalition. The Communities and Local Government Secretary—the man with the money—wants the money to go to local enterprise partnerships, but the Business Secretary, who is in charge of the sponsoring Department, favours regional economic enterprise partnerships, rather like RDAs. As my hon. Friend the Member for Sedgefield (Phil Wilson) said, this afternoon we have simply heard confirmation of uncertainty. That adds to confusion, and it is not good for business.