Oral Answers to Questions

Mark Hoban Excerpts

Tuesday 1st November 2011 Commons Chamber

[Nick Smith (Blaenau Gwent) (Lab)]

10. What assessment he has made of the level of economic growth in (a) the UK and (b) other EU members states in the last 12 months.

[The Financial Secretary to the Treasury (Mr Mark Hoban)]

Eurostat publishes GDP growth data on all EU member states. These data show the UK economy growing in the most recent three quarters. The IMF’s latest forecast shows the UK economy growing this year, and growing faster than the economies of France, Germany and Italy next year.

[Nick Smith]

The Times says today that the Government’s plans for growth are “piecemeal” and their implementation “patchy”. Given that long-term youth unemployment is up by 60%, do we not need a proper programme for jobs?

[Mr Hoban]

The hon. Gentleman will realise that the biggest increase in youth unemployment in recent years took place when his party was in government. This Government have put in place the long-term foundations to tackle unemployment and raise growth across the UK.

[Charlie Elphicke (Dover) (Con)]

May I welcome today’s excellent economic growth figures, which are well ahead of forecasts at 0.5%? Our growth is just as high as US growth this year, without the massive fiscal stimulus. Is that not right?

[Mr Hoban]

My hon. Friend makes an important point. It would have been better if the Labour party had welcomed today’s growth figures rather than talking our economy down.

[Stephen Timms (East Ham) (Lab)]

When we embarked on the economic course that the Government have set, Ministers told us that because they were tackling the deficit aggressively, there would be a surge of private sector confidence—and, therefore, investment and jobs. Many people agreed with them. Now that we know that expectation was mistaken, surely there must be a change of course.

[Mr Hoban]

Every reputable international organisation that talks about what is happening in the UK economy now recognises that the Government need to stick to the course, rather than throwing away the valuable credibility that we have gained as a consequence of tackling the mess left behind by the previous Government.

[Andrea Leadsom (South Northamptonshire) (Con)]

Does my hon. Friend agree that having our own currency is one of the keys to turning round our economy? Does he share my astonishment that the Labour party does not rule out joining the single currency?

[Mr Hoban]

It is remarkable, is it not, that when the Leader of the Opposition was asked whether a Labour Government would join the euro, his answer was:

“It depends how long I’m prime minister for.”

This Government have closed down the euro preparations that the Labour party set up, and that is why I think that we have taken the right decision to stay out of the euro and tackle our debt and deficit problems. That is why we have low interest rates, which help strengthen the recovery in this country.

[Mrs Linda Riordan (Halifax) (Lab/Co-op)]

13. What fiscal measures he is implementing to address youth unemployment.

--- Later in debate ---

[John Howell (Henley) (Con)]

14. What recent representations he has received from the IMF and the OECD on UK economic policy.

[The Financial Secretary to the Treasury (Mr Mark Hoban)]

The International Monetary Fund and the OECD regularly hold frank bilateral discussions with each member country. When Christine Lagarde, the managing director of the IMF, visited London in September, she stated:

“In the United Kingdom strong fiscal consolidation is essential to restore debt sustainability, given the UK’s very high structural budget deficit and large financial sector relative to GDP.”

Angel Gurria, secretary-general of the OECD, said yesterday of the UK:

“You were successful. You cleared the markets. The package was credible…The markets never discuss the quality of the rating of the UK.”

That is a consequence of the actions this Government have taken to tackle the mess left behind by the previous Government.

[John Howell]

I thank the Minister for that reply, but what advice has he been given on the consequences of our failing to pay our IMF subscription?

[Mr Hoban]

My hon. Friend asks a very good question. It is a sad indictment of the state of today’s Labour party that it voted against the increase in the IMF subscription negotiated by the—

[Mr Speaker]

Order. The Minister has said enough, and he has said it about another party’s policy. We need to move on.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Is it not accepted now by the international community that the announcement by the Chancellor a year ago that he would cut half a million public sector jobs led directly to a reduction in consumer demand, and that it has reduced private sector investment and growth and led to an increase in deficit predictions?

[Mr Hoban]

The hon. Gentleman should recognise that the action that this Government have taken has earned the endorsement of the IMF and the OECD. That is why we have the low interest rates the economy needs. The Opposition talk about a plan B, but that would actually increase the budget deficit and the interest rates that this country would have to pay.

[Laura Sandys (South Thanet) (Con)]

15. What fiscal measures he is taking to encourage job creation in the private sector.