Oral Answers to Questions

Debate between Mark Garnier and Andrea Leadsom

Tuesday 27th January 2015 Commons Chamber

[Andrea Leadsom]

No. The amount spent was £43,000. The Government believe fundamentally that we need to have the toughest regime in the world of any global financial centre on pay, and that is what we have. We have ensured that bankers will be remunerated in future on performance and that pay can be clawed back. We have put in place a system that is far better and far more accountable than anything that the previous Government attempted.

[Mark Garnier (Wyre Forest) (Con)]

In the light of all the hard work by the Government to ensure that bonuses are held back by banks to secure better behaviour by staff and greater stability for banks, is not the bonus cap a crude measure that will increase bank instability and bad behaviour by bankers?

[Andrea Leadsom]

My hon. Friend is exactly right. The Government wanted to challenge that cap because it would push up fixed pay, which means bankers being paid not for performing but for simply turning up and raises prudential risks associated with higher fixed costs. It was vital to the interests of this important sector to the UK that we introduced a better regime, and I am delighted that the Chancellor has written to the Governor of the Bank of England in his role on the Financial Stability Board to ask him to look at other ways of ensuring accountability.

High Speed 2

Debate between Mark Garnier and Andrea Leadsom

Thursday 13th October 2011 Commons Chamber

[Andrea Leadsom]

I want to make a little more progress, if I may.

I hear arguments that lots of other countries have high-speed rail so we need it to be able to keep up and compete with them, but the truth is that France, Germany and China are very different from our country. They each have a far greater land mass and much longer distances between cities. Furthermore, their high-speed railways follow existing transport corridors, and their non-high speed trains are extremely slow, unlike our existing inter-city trains, which are technically high-speed, with a top speed of 125 mph.

I also hear arguments that we should replicate the fabulous experiment with HS1. Yet a wealth of evidence suggests that commuter services running parallel to the HS1 link have become more expensive, have far more stops and far fewer trains running along the line, in order to subsidise HS1. Even the chief engineer of HS2 Ltd told me that, as a Kent commuter, he has had to get used to more expensive train fares in order to subsidise those using the HS1 service.

If all else fails, we hear that killer argument, “This is about a vision for Britain. This is like the great Victorian railways. It is like the fabulous post second world war motorways.” I am sorry, but I just do not buy that argument. The Victorian railways were largely privately funded The motorways are fabulous, but they have benefited every town and village in this country, because they have junctions every few miles. By contrast, every family in Britain will pay £1,000 for HS2 but 99% of people in this country will use the service less than once a year, and the wealthiest will use it four times more often than the poorest. That is a massive skewing of scarce resources.

[Mark Garnier (Wyre Forest) (Con)]

Does my hon. Friend agree that although £32 billion is a great deal to spend on an infrastructure project, it is probably a welcome sum to spend on the supply side of our economy? Does she further agree, however, that it could be better spent on more local projects, such as the Stourport relief road in Kidderminster?

[Andrea Leadsom]

My hon. Friend makes a good point, and we could have a fabulous relief road for £32 billion. He makes the serious point that there is a huge opportunity cost to spending this amount of money on HS2.