Oral Answers to Questions

Debate between Mark Hoban and Peter Bone

Monday 1st July 2013 Commons Chamber

[Mr Hoban]

The hon. Lady raises an important point. We need to work with those organisations that support lone parents to see what more the Work programme can do to help them into employment. The Chancellor announced last week that we will be providing more support to lone parents in the two or three years before their child goes to primary school.

[Mr Peter Bone (Wellingborough) (Con)]

Does the Minister agree that what we really need for young people is jobs in the economy? Will he welcome what is happening at Rushden Lakes, a major new retail and leisure park that is currently going through its planning process? It will create thousands of jobs, many of them for young people, thanks to the leadership of the Conservative-dominated Government.

[Mr Hoban]

My hon. Friend is absolutely right. Labour did not believe that the private sector would create the necessary jobs to offset public sector job losses, but over the past three years, for every job lost in the public sector, three were created in the private sector. Labour criticises that, but we should congratulate the sector.

Oral Answers to Questions

Debate between Mark Hoban and Peter Bone

Monday 5th November 2012 Commons Chamber

[The Minister of State, Department for Work and Pensions (Mr Mark Hoban)]

Since May 2010, more than 8.6 million claims for jobseeker’s allowance have ended, of which an estimated 68%—or more than 5.8 million—saw the claimant enter work.

[Mr Bone]

I have good news for the Minister: another 2,000 are coming off jobseeker’s allowance because of a new development in my constituency—well, between my constituency and the Corby constituency. It is supported by Wellingborough council, East Northamptonshire district council, Higham Ferrers council and Rushden council—all Tory councils—but it is opposed by Labour Corby council. Can the Minister explain that?

[Mr Hoban]

My hon. Friend makes an important point. When people think about how they should vote in Corby on 15 November, they will see that Labour is wrecking job prospects in that area.

Oral Answers to Questions

Debate between Mark Hoban and Peter Bone

Monday 10th September 2012 Commons Chamber

[Mr Hoban]

First, I thank my hon. Friend for his congratulations. We have a lot to do, but the numbers of people in work have increased since the Government came to office. I congratulate him on setting up the jobs fair and am delighted that Jobcentre Plus has worked with him to ensure that it is as effective as it can be so that it gets as many people in Harlow as possible into work.

[Mr Peter Bone (Wellingborough) (Con)]

2. What recent assessment he has made of employment levels in the private sector.

[The Minister of State, Department for Work and Pensions (Mr Mark Hoban)]

The latest figures, covering February to April 2012, show almost 23.5 million people employed in the private sector. That is a rise of 222,000 on the previous quarter and more than 900,000 since 2010.

[Mr Bone]

What a splendid answer. Would the Minister like to increase that figure a little more? A company in my constituency has won an export order for 90 air conditioners to Egypt, but it is being blocked by red tape from the Foreign Office from carrying out the order. Could he provide some help and encouragement so that the order can happen?

Oral Answers to Questions

Debate between Mark Hoban and Peter Bone

Tuesday 24th January 2012 Commons Chamber

[Mr Peter Bone (Wellingborough) (Con)]

12. What recent estimate he has made of the level of the UK’s current account balance with the EU.

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

In 2010, the UK had a current account deficit of £49 billion. That deficit results from a deficits of £48 billion with the EU and of £1 billion with non-EU countries.

[Mr Bone]

That was a most incredible figure of a deficit of nearly £50 billion to the EU. Does the Minister agree that the Deputy Prime Minister is quite wrong to go around to the television studios claiming that the EU creates 3 million jobs for British workers when it is quite clear from those figures that the EU costs millions of British jobs?

[Mr Hoban]

My hon. Friend should bear in mind that the deficit on traded goods between the UK and the EU is £43.9 billion but that the deficit outside the EU is even larger at £54.7 billion. We should be encouraging businesses across the UK to invest more and to export more to places in the EU, as well as to Brazil, Russia, India and China. I encourage him to talk to businesses in his constituency and encourage them to export more to close that gap.

Connecting Europe Facility

Debate between Mark Hoban and Peter Bone

Thursday 19th January 2012 Commons Chamber

[Mr Hoban]

Of course, in a way, the Commission’s view is that it is probably somebody else’s problem to resolve the financing. It put forward measures in the multi-annual financial framework that will increase the amount of money flowing to Europe. It has put forward an EU-wide financial transactions tax, which we object to. Its view is that if such a tax went ahead, the revenues would go not to member states, to spend at their discretion, but to the European Commission to spend. As part of its financial framework, the Commission also proposed the end to our rebate—another proposal we would reject.

The Commission would look to member states to meet the cost of these projects, which is why it is absolutely vital that we work with like-minded allies to restrain the EU budget and ensure that we can spend more money at home, while less money goes abroad. [Interruption.] The hon. Member for Nottingham East (Chris Leslie) chunters, but if he had listened to my speech, he would have heard me say that we have signed a letter with the Chancellor in Germany, Angela Merkel, and with the French President calling for a real-terms freeze in payments. That is the sort of alliance we can build in Europe. I will come to the hon. Gentleman’s amendment later, but I am rather bemused: the Labour Government talked tough in EU negotiations, but they happily gave away our rebate, costing this Government €10 billion over the life of this Parliament.

[Mr Peter Bone (Wellingborough) (Con)]

The Minister is being far too generous to Labour Members. Over the last five years of the Labour Government, our net contribution to the EU was an extortionate £19 billion. Under this Government, it will be £41 billion, because Labour gave away a large part of Mrs Thatcher’s rebate. That is a disgrace, and Labour should be held to account for it.

[Mr Hoban]

I like to be generous in politics, but the previous Government were generous in giving away our money, by giving away part of the rebate. I will come back to that in a moment.

Northern Rock

Debate between Mark Hoban and Peter Bone

Monday 21st November 2011 Commons Chamber

[Mr Hoban]

I have made it very clear that we acted on the advice that we had received from our independent advisers. They put forward the case that it was better for Northern Rock to be sold to Virgin Money than for us to sit on it or have it remutualised in one form or another, and I think that that is the best outcome for Northern Rock and its employees. I also think that Labour Members should recognise their role in the circumstances that led up to the failure of Northern Rock and show some contrition about the regulatory system that they left behind.

[Mr Peter Bone (Wellingborough) (Con)]

For Northern Rock’s employees, borrowers and depositors, who does the Minister think would be better to run it: the Government or Virgin? It appears that Labour Front Benchers think it is the Government.

[Mr Hoban]

I have always taken the view—I think my hon. Friend will agree with me on this occasion—that these things are better run in the private sector than in the state sector. I think we will see good management and good leadership from Virgin Money, which will provide a long-term foundation for a credible competitor in the retail financial services sector.

Eurozone Crisis

Debate between Mark Hoban and Peter Bone

Thursday 3rd November 2011 Commons Chamber

[Mr Peter Bone (Wellingborough) (Con)]

(Urgent Question): To ask the Chancellor of the Exchequer to make a statement on the euro crisis and its implication for the United Kingdom.

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

Hon. Members will be aware of recent developments in the eurozone. My right hon. Friends the Prime Minister and the Chancellor of the Exchequer are at the G20 meeting in Cannes as we speak, and we understand that the Greek Cabinet is due to meet imminently as well. We will not be providing a running commentary on the market and media speculation of those events, but I can reassure the House that the Prime Minister will be making a statement to the House on Monday.

What is clear, however, is that the instability in the eurozone continues to have a chilling effect on the rest of the European, the UK and the entire global economy. As the Chancellor has said, a resolution to that crisis is in our vital national interest. It is vital that the eurozone members reach a solution that is coherent, comprehensive and lasting. Last week, European Heads of State reached an outline agreement that laid out a blueprint to resolve the crisis. It was a three-pronged strategy. First, weak European banks should be recapitalised. Importantly, in the assessment of the European Banking Authority and our own regulatory authorities, no British banks require additional capital, which is an important expression of confidence in the country’s banking system.

Secondly, the unsustainable position of Greece’s debts should be resolved. In particular, a headline agreement was reached to reduce the Greek debt to gross domestic product ratio to 120% by 2020, through an additional €30 billion of euro area money and private holders of Greek sovereign debt being asked to accept a nominal write-down of 50%. Thirdly, eurozone member states should reinforce the bail-out fund to create a firewall, either by using the fund to insure new debt or by attracting public and private investors through a special purpose vehicle. Both mechanisms are designed to have the capacity to leverage around €1 trillion. This package demonstrated the commitment of the euro area member states to stand behind the single currency. It was progress, but more details are needed on how it will work.

Right hon. and hon. Members will be aware, however, of developments in Greece since that agreement was reached last week. There is no doubt that the decision by the Greek Prime Minister has added to the instability and uncertainty in the eurozone. Ultimately, it is up to Greece to make its own decisions, but it is critical that all parties stick to the deal that was agreed last week. That agreement is an important part of the economic recovery here in the UK, across Europe and across the global system. If the euro area collectively does not decisively sort out its ongoing problems, the uncertainty that that creates and its impact on global confidence will continue to undermine economic recovery across the world.

This is uncertainty that the global economy can ill afford, and uncertainty that has been a drag on all our economies for months. We will continue to urge our euro area counterparts to press for a decisive resolution of the crisis at the G20 at Cannes over the coming days, but at no point have we committed any British taxpayer money—not to Greece, not to the bail-out fund.

I want to address directly the question of UK commitments through the International Monetary Fund. Britain has always been one of the largest shareholders in the IMF, and there may well be a case for further increasing the resources of the IMF to keep pace with the size of the global economy. We stand ready to consider the case for further resources if necessary, but let me be clear: we are only prepared to see an increase in the resources that the IMF makes available to all its members. We would not be prepared to see IMF resources reserved only for use by the eurozone. The IMF can use its expertise to help administer its fund, but it can only lend to countries with a programme for adjustment. A potential special purpose vehicle for the euro area bail-out fund does not fit that bill.

Last week’s announcement, however, was only the first step to resolving the immediate crisis. In the long term, it is vital that the euro area members follow the remorseless logic to closer fiscal union. It is equally vital that we work together to improve competitiveness in the peripheral countries of the eurozone, as well as the overall competitiveness of the European bloc in the world economy.

The ongoing instability in the euro area is a vindication of the Government’s decision to get ahead of the curve, cut our own deficit and improve our economic competitiveness. Our decisive action to cut the deficit means that the UK has stayed out of the storm, and is the reason we have gilt yields close to the likes of Germany, rather than similar to those of Greece, Italy or Spain. We will encourage our euro area counterparts to do the same over the coming weeks. As I said, the Chancellor and Prime Minister are in Cannes. It is vital that leaders commit in Cannes to increase confidence in the global economy, agreeing the detail of the euro area rescue. The Prime Minister will update the House on Monday.

[Mr Bone]

I thank you for granting this urgent question, Mr Speaker, and the Minister for his full response.

It has long been argued by Conservative Ministers that retaining the pound and allowing it to float in line with market conditions has enormous benefits for the British economy. If the British economy is having a difficult time, the value of the pound will fall, which makes exports cheaper and foreign companies’ imports more expensive, thereby increasing growth, jobs and prosperity in the United Kingdom. Equally, Conservative Ministers have always argued that the Bank of England’s ability to set UK interest rates allows the country to encourage growth in a recession and control expansion in a boom.

Both those powerful economic weapons are being denied to Greece, as it is in the euro straitjacket. Will the Minister explain why it is the Government’s policy to deny Greece a way out of its economic crisis by allowing it to withdraw from the euro and re-establish the drachma? Does he think it was a mistake for the German Chancellor and the French President to increase the crisis by making the Greek referendum on the bail-out a referendum on whether Greece remains in the euro? Does the Minister agree that the Greek Government were right to consult their people on the proposed austerity measures, so that if the country votes yes, they will have a mandate to drive through the reforms? What other countries does he think would come under market pressure because of the instability of the euro? Were the President of France and the Chancellor of Germany right to say that they wanted to save the euro at any cost, rather than putting the interests of Europe first? Finally, do the Government have a comprehensive contingency plan for when the euro collapses?

[Mr Hoban]

I am grateful to my hon. Friend for his question and his response to my statement. He is absolutely right: it was right for this country to stay out of the euro. That is the settled position of the coalition Government, and it is the right position to adopt. However, that was a decision that the people of this country made. It was not made under duress from other countries; it was a free choice that we made. On that basis, it is better for the Greeks to make their own decisions than for us to offer them advice.

My hon. Friend asked about contingency planning. He would expect every good Government to have plans in place to cover a range of eventualities, and this Government are well prepared for any eventuality.

Oral Answers to Questions

Debate between Mark Hoban and Peter Bone

Tuesday 21st June 2011 Commons Chamber

[Mr Hoban]

Perhaps the hon. Gentleman should speak to the right hon. Member for Edinburgh South West (Mr Darling), who said that imposing the bank levy again simply would not work.

[Mr Peter Bone (Wellingborough) (Con)]

Are the losses on banks that accumulated because of their bad judgment being allowed to be set against future profits? In other words, are they avoiding future tax on future profits?

[Mr Hoban]

The corporation tax arrangements for banks are similar to those for other businesses. That is one reason why we have imposed the additional bank levy, which will raise more each year over this Parliament than the previous Government’s bank payroll tax did. It is important that the banks make a contribution to reflect the risk that they pose to the wider economy.

Eurozone (Contingency Plans)

Debate between Mark Hoban and Peter Bone

Monday 20th June 2011 Commons Chamber

[Mr Hoban]

When the Greek Government agreed last year’s debt bail-out package, it was assumed that they would be able to re-enter the markets in the spring of next year. That is clearly not the case, given current market pressures, which is why the Greek Government had to seek a second round of refinancing. However, they still need to take action to improve Greece’s competitiveness, reduce the size of the state sector through further privatisation and improve taxation, to get the economy back on track.

[Mr Peter Bone (Wellingborough) (Con)]

I congratulate the hon. Member for Birmingham, Edgbaston (Ms Stuart) on securing this urgent question, and I say gently to the Minister that it is a shame that he did not volunteer to make a statement on this matter first. What is Her Majesty’s view on whether the euro can survive in its current format?

Regulatory and Banking Reform

Debate between Mark Hoban and Peter Bone

Thursday 16th June 2011 Commons Chamber

[Mr Hoban]

That response clearly demonstrated the emptiness of the Opposition’s thoughts on these matters. They have had a year to consider whether these reforms are in the interests of strengthening financial regulation and whether they will strengthen the banking system, but here they are today, a year later, with no idea on the best way to proceed. That is not surprising given that the shadow Chancellor was a champion of light-touch regulation when he was the City Minister and he presented that argument not just in London but across the world. It is time for the Opposition to make their mind up: are they prepared to acknowledge the mistakes of the past and accept the tougher regulatory regime we have proposed, or are they going to cling to the legacy and wreckage of the previous Government’s financial regulation system?

Let me deal with one or two of the points that the hon. Gentleman raised. It has been clear from the outset that one of the roles of the interim Financial Policy Committee, which is meeting formally for the first time this afternoon, is to provide advice to the Treasury on the macro-prudential tools that it believes would be appropriate for the FPC. Until the interim FPC has concluded its work it is very difficult to give the House information on that, but what we are doing in the Bill is making sure there is a process in place to ensure there is consultation and that there is discussion in the House. Those tools will not be given to the Bank until we have gone through a legislative process in this place.

The hon. Gentleman raised the issue of Northern Rock. As someone who was born and brought up the north-east, I understand his concern and the importance of Northern Rock to the regional economy. We have, as part of our review, considered remutualisation and our financial adviser Deutsche Bank is reporting to UK Financial Investments on Northern Rock. The advice is to proceed in the first instance with a sale option and the option of remutualisation has been explored with Co-operatives UK and the Building Societies Association, which commissioned the report by Professor Michie. The final decision will be judged against such other options as an initial public offering or a stand-alone remutualisation, but I remind the Opposition that it is important to secure taxpayers’ interests, as we have invested £1.4 billion in Northern Rock.

On the Independent Commission on Banking, we have indicated that we would support the proposal, but we have said that we want to see the final proposal that Sir John Vickers makes. We have dealt with an issue that the previous Government failed to tackle. They closed down the topic of whether there were some structural issues in the UK banking sector that put taxpayers at risk. They were not prepared to confront that debate, but this Government have been prepared to do that and to take some serious and difficult decisions on that matter.

On the issue of bank lending, it is all very well the hon. Gentleman preaching, but the previous Government did not in any way attempt to get the big banks together to talk about increasing lending to small businesses. As the banking sector and the economy deleverage, it is important that those businesses seeking finance have that opportunity. That is why we secured commitments from the banks, and they are held to account on the published targets that were announced earlier this year. The package of measures we have announced demonstrates the progress we are making towards a new settlement on financial regulation and banking, and it is a pity that the Opposition are not prepared to face up to their responsibilities and take part in this debate.

[Mr Peter Bone (Wellingborough) (Con)]

I thought that the shadow Minister let the Government off far too lightly regarding Parliament. This place should hear new policy from the Government first. Yesterday, this was published by the BBC first and was then announced at Mansion House. I am afraid that the Government have failed on this occasion. Will the Minister please publish the media grid?

[Mr Hoban]

I would just point out to my hon. Friend that last night the Chancellor did not read out the White Paper—the blueprint for reform that we have before us today. That is the centrepiece of today’s announcement. We have engaged fully with Parliament on this and he will be aware that what we are doing is starting a process of pre-legislative scrutiny to ensure that Members across the House can take part in debate on this. Throughout this whole process, we have sought to keep Parliament informed of the actions we are taking and to ensure that Parliament has a chance to scrutinise the decisions that the Government have made.

European Summit

Debate between Mark Hoban and Peter Bone

Thursday 24th March 2011 Commons Chamber

[Mr Hoban]

I do not believe it is appropriate at this stage to engage in speculation about the Portuguese economy. There has been no request for a bail-out, and further comment would be unhelpful.

[Mr Peter Bone (Wellingborough) (Con)]

On the Portuguese potential bail-out, will the Minister agree to make a statement to the House before we are committed to any bail-out? What provision has been made in the Budget for such a bail-out?

[Mr Hoban]

My hon. Friend wishes me to respond to a hypothetical question, but I do not intend to do so today.

Oral Answers to Questions

Debate between Mark Hoban and Peter Bone

Tuesday 21st December 2010 Commons Chamber

[Mr Hoban]

If the hon. Lady speaks to building societies, which are finding it difficult to lend at the moment, she will hear their concern about the amount that they pay towards the financial services compensation scheme. Contributing to a pre-funded scheme would add to that burden and reduce the ability of banks and building societies to lend to support the recovery.

[Mr Peter Bone (Wellingborough) (Con)]

Government Members, including me, believe that the Chancellor and his team are doing an exceptionally good job for the country. May I suggest another policy to reduce the deficit in this country? A freeze on our contributions to the EU would save us £22 billion over the next five years, which should be given back in tax cuts.

[Mr Hoban]

My right hon. Friend the Prime Minister is working with his international partners to freeze the EU’s budget over the next financial perspective.

Loans to Ireland Bill

Debate between Mark Hoban and Peter Bone

Wednesday 15th December 2010 Commons Chamber

[Mr Hoban]

It is right that the duty to report is extinguished when there is no principal outstanding, and that is the purpose of subsections (4) and (5).

I hope that, with that explanation, hon. Members will accept manuscript amendment (a) and will not seek to press amendments 1, 5 and 2.

Manuscript amendment (a) agreed to.

Clause 2, as amended, ordered to stand part of the Bill.

Clause 3

Short title, commencement and extent

Question proposed, That the clause stand part of the Bill.

[Mr Bone]

Can the Minister answer the following question, which has been raised several times during the debate: why is the Bill called the Loans to Ireland Bill rather than the Loans to the Republic of Ireland Bill? That seems very strange, as it gives others the impression that we are lending money to Northern Ireland as well as to southern Ireland.

[Mr Hoban]

That is an interesting question, as my hon. Friend the Deputy Leader of the House knows because he also recently asked it. I draw the attention of my hon. Friend the Member for Wellingborough (Mr Bone) to clause 1(2), which defines an “Irish loan” as

“a loan to Ireland by the United Kingdom.”

Of course the United Kingdom includes Northern Ireland. Therefore, the loan is clearly to what one technically might describe as the Republic of Ireland. I am grateful to my hon. Friend for raising that point, in order to enable me to put that clarification on the record.

Question put and agreed to.

Clause 3 accordingly ordered to stand part of the Bill.

The Deputy Speaker resumed the Chair.

Bill, as amended, reported.

Third Reading

Loans to Ireland Bill

Debate between Mark Hoban and Peter Bone

Wednesday 15th December 2010 Commons Chamber

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

This has been a good debate about the principles underlying the Bill, and I welcome the Opposition’s support for it.

I am sorry that the shadow Chancellor is not in his place. He made a typical speech: a couple of jokes, a few quotations and then a shaky grasp of the facts. I shall not match him on jokes, but let me give the House a couple of quotations. He talked about the views on Ireland, but let me quote a former member of Labour’s shadow Cabinet, who said:

“The whole purpose is to bring the Welsh economy up to the standards of those of other countries in Europe, so that we can follow the lead of the Irish economy and become, in a matter of 10 or 20 years, one of the most successful regional economies in Europe.”—[Official Report, 28 February 2002; Vol. 380, c. 868.]

The right hon. Member for East Ham (Stephen Timms), when he was Chief Secretary to the Treasury, said:

“The Irish economy has enjoyed a good deal of success over the past few years. The corporation tax regime has contributed to that, but there have been a number of other factors”.––[Official Report, Finance Public Bill Committee, 8 May 2007; c. 19.]

There we go: a record of Opposition Members’ hymns of praise to the Irish economy.

It struck me as remarkable, however, that the shadow Chancellor did not understand the mechanisms being used to support the Irish economy. He seemed to think that the UK would bear a higher share of the bail-out costs than other European Union members, such as France and Germany, and that they do not contribute to the IMF or to the stability mechanism. Let me make it absolutely clear to the House that the UK is contributing through the IMF, the stability mechanism and a bilateral loan. Other European countries are contributing through the IMF, the stability mechanism and, if they are members of the eurozone, the stabilisation facility.

Owing to their share of the contribution to European Union funds, Germany and France are contributing more than the UK: some 27% of the contribution is through the facility. France contributes 20% through the facility, compared with our 14%. And through the mechanism, the UK’s contribution is 14%, Germany’s 20% and France’s 17%. It is a pity that the shadow Chancellor does not understand how the package actually works. The right hon. Gentleman also seemed to deny that the euro made any contribution to the crisis facing Ireland. However, the right hon. Member for Edinburgh South West (Mr Darling), who made a very thoughtful speech about the challenges facing the European Union, punctured his view that the euro had nothing to do with it.

My hon. Friend the Member for Chichester (Mr Tyrie) asked whether we considered buying bank assets. We have in place an agreement by the Irish Government to repay our loan in full, but that could not have been guaranteed if we had sought to buy individual assets of Irish banks. He also asked whether Ireland could repay early without a penalty, and the answer is yes, but the Irish Government would have to make break payments.

The right hon. Member for Belfast North (Mr Dodds) and the hon. Member for Belfast South (Dr McDonnell) talked about the impact on the Northern Ireland economy of what is happening south of the border, and we recognise that. We recognise also that more work needs to be done to strengthen the Northern Irish economy, which is why we are in discussions with the Northern Ireland Office about the issues to do with enabling the Executive to set their own corporation tax rate. There is another part to that deal, however, because, if they have that power, they will need to bear the risk with the revenue and see a reduction in their block grant.

A number of hon. Members, including my hon. Friends the Members for Wellingborough (Mr Bone) and for Kettering (Mr Hollobone) and the hon. Member for Nottingham East (Chris Leslie), asked how we can afford to do this, given the fiscal position that we are in. Let me make it clear that we are not paying for the loan out of revenue or capital expenditure; we are going to borrow the money. The measure will not lead to a reduction in the money we can spend in my constituency or theirs. In fact, as my right hon. Friend the Chancellor said, we will end up making a small profit on the loan because of interest rate differentials. The loan will not affect how much can be spent in our constituencies, and if that is the only reason hon. Members are opposing the measure, I ask them to think again.

[Mr Bone]

I entirely agree with what my hon. Friend is saying. However, the measure will increase our debt, which is something we are trying to get down. In addition, his comments are based on the assumption that the loan will eventually be repaid.

Finance Ministers’ Meeting (Ireland)

Debate between Mark Hoban and Peter Bone

Wednesday 17th November 2010 Commons Chamber

[Mr Peter Bone (Wellingborough) (Con)]

(Urgent Question): To ask the Chancellor of the Exchequer whether he will make a statement on the Government’s position about the proposed financial rescue package for Ireland.

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

I am grateful for this opportunity to make a statement to the House about Ireland.

The House will understand that the Chancellor is currently in Brussels at the meeting of the Council of EU Finance Ministers. I understand that hon. Members are concerned about the events that have unfolded.

Ireland has been facing difficult economic and banking challenges for some time, and as a member of the euro area its ability to use policy to respond to economic shocks is less flexible than our own. As a result, there are ongoing market concerns about Ireland’s economic and financial resilience.

Let us be clear: there has been no formal request for assistance from Ireland, or for that matter from any other member state. I hope the House will understand that it would be inappropriate for me to engage in any speculation on what might happen in Ireland, given that it has made no request for assistance. It is not for me to say whether Ireland should request assistance, just as I would not tell it how to run any part of its economy. Its large financial institutions have obviously got themselves into difficultly, and we very much hope it will be able to resolve those pressures.

Ireland is one of our biggest export markets. We have very close economic ties with it and, as the Chancellor said this morning, it is in Britain’s national interest that the Irish economy is successful, so we stand ready to support Ireland in the steps that it needs to take to bring about stability. I am sure that our fellow EU member states will share that sentiment, and I assure the House that we will keep it informed of developments.

[Mr Bone]

I thank the Minister for his response. At a time when the United Kingdom is already contributing extra funds to the European Union—over the next five years our net contribution will be £41 billion, an increase of more than £21 billion compared with the past five years—and when we are making drastic cuts in the UK’s economy, does he think it is acceptable that any further funds should be committed to the EU?

The coalition Government have made it clear that we will not join the euro during this Parliament, arguing that the euro, with its single interest rate but diverse economies, cannot work. Will the Minister confirm that we will not be joining the euro?

The Government have also made it clear that the UK will not support the euro. Will the Minister therefore rule out the UK participating in any bail-out of the Irish economy? Will he also confirm that the €440 billion special-purpose vehicle facility—a voluntary intergovernmental agreement between eurozone countries —should be used for any such bail-out?

Does the Minister further agree that the use of the stabilisation mechanism, which the United Kingdom guarantees up to £8 billion, was not intended to be used to bail out eurozone countries facing financial pressure? Finally, does he agree that what is required from the EU is support for member states’ policies when, like Ireland, they are trying to do the right thing? Instead, the EU has undermined Ireland and created a crisis.

[Mr Hoban]

May I first reassure my hon. Friend that it is not the Government’s intention to join the euro during this Parliament? I am not entirely sure what the Opposition’s view is, but we have ruled that out.

My hon. Friend mentions the two mechanisms that are available for stabilisation. The stabilisation facility is purely for eurozone member states, outside the auspices of the current treaties and a bilateral, Government-to-Government arrangement. The mechanism that he refers to is available to all members of the European Union. The previous Government and the previous Chancellor decided to join it in the days prior to the formation of the current Government, and I believe that they need to be held to account for that decision.

European Union Economic Governance

Debate between Mark Hoban and Peter Bone

Wednesday 10th November 2010 Commons Chamber

[Mr Hoban]

There is nothing new in the macro-economic surveillance processes outlined in the document and, as I have said, we are exempt from the sanctions regime that the Commission and others have proposed, which applies only to eurozone countries. Let me now make some progress.

We need to recognise that there are lessons to be learned from the economic crisis, but one lesson that stands out that is relevant to the debate this evening and to the documents is that in an open, global economy, no economy exists in isolation. The failures of economic policy in one country can be exported to other nations, and the imbalances in one economy can have an impact on others. Imbalances such as excessive domestic demand and growth can lead to asset bubbles, an over-reliance on exports or divergence in competition across countries. It is in all our interests to improve co-ordination and co-operation in policy making, to tackle those imbalances and increase the resilience and strength of the global economy.

However, in our view, increasing co-ordination and co-operation has to be consistent with national sovereignty and the accountability of Parliament. It is those principles that frame our response to the documents and our response to the global economic crisis. There is an intense global debate about those topics in the G20, the IMF and the OECD, and in Europe. We take part in those debates because, as an open economy, we have a strong interest in economic stability. We are acutely aware that imbalances and problems in one economy can have a spill-over effect in another.

[Mr Peter Bone (Wellingborough) (Con)]

Is the Financial Secretary saying that the taskforce document that I have, dated 21 October, has been rewritten? It concludes:

“Endorsement by the European Council of the recommendations in the present report will contribute to strengthening economic governance in the EU”.

It clearly says “in the EU” as a whole.

[Mr Hoban]

But the sanctions regime relates only to eurozone countries, and no sanctions can be imposed on the UK. All that the document is referring to is continuation of the macro-economic surveillance that has been taking place over the past 10 years.

Economic Governance (EU)

Debate between Mark Hoban and Peter Bone

Wednesday 27th October 2010 Commons Chamber

[Mr Hoban]

Absolutely. That is why I would encourage my hon. Friend to read this document. He will see the gains that we have managed to secure in Europe to defend our position.

[Mr Peter Bone (Wellingborough) (Con)]

Does the Minister welcome the united approach of the coalition Government working together, under which the Prime Minister sent the hon. Member for Stone (Mr Cash) to Brussels yesterday to duff over the EU President and soften up the EU so that the Prime Minister can finish the job this weekend?

[Mr Hoban]

The coalition is at its best when all Members are united behind it.