Economy

Lord Kinnock Excerpts

Monday 7th June 2010 Lords Chamber

[Lord De Mauley]

My noble friend is quite right. On 17 May, the Government announced that a separate review process is under way to examine spending commitments made since 1 January. It includes some of the projects to which my noble friend referred. Where projects are good value for money and consistent with the Government’s priorities, they will go ahead. Where they are not, it would be irresponsible to waste money on them. The Treasury has been asked to fast-track a decision to give clarity as soon as possible to the companies and the work on which they are focusing. A decision is expected soon.

[Lord Kinnock]

My Lords, can the Minister tell us whom we should believe, especially in view of the impact on the economy and employment of government policy on public expenditure? Should we believe Mr Clegg, who says that there will be no going back to the days—as he put it—of Thatcher, or Mr Cameron, who tells us that the cuts are going to be so savage that they will change the way in which we all live? Which of them is telling the truth, because they are opposites?

[Lord De Mauley]

My Lords, the noble Lord, Lord Kinnock, will not be surprised to hear that I do not necessarily agree with him. I respectfully suggest to him that his line of questioning on job losses, in particular, is somewhat flawed in that it ignores the near certainty that job losses on a massive scale will occur if cuts are not made because of the danger of rising interest rates and their effect on business.