Cost of Living: Energy and Housing

Michael Ellis Excerpts

Thursday 5th June 2014 Commons Chamber

[Sir Edward Garnier (Harborough) (Con)]

Thank you for calling me so early in this debate, Mr Speaker. I commend both the Secretary of State and the shadow Secretary of State for starting off our proceedings, but I am afraid that I will diverge from energy and housing issues to concentrate on other matters.

Although much has been said about the shortness of the Queen’s Speech—that it does not contain many measures—to my mind that is a quality. This House passes far too much legislation, and we ought to spend more time repealing legislation before we consider passing more. Although some say that its shortness is a fault of this Queen’s Speech, I say that it is a particular benefit.

There is one Bill in particular of which I am very fond: the pensions tax Bill. As a private Member, I introduced—I think in 2004—the Retirement Income Reform Bill, which intended to do away with the need for those at the age of 75 to buy an annuity. It passed Second Reading on a Friday afternoon, I think by a majority of 101. Unfortunately, the Labour Government crushed it. I hope that the Labour party has changed its mind and will support the Bill when it comes before the House again in the guise of the pensions tax Bill.

Another measure that I am particularly pleased to see in the Queen’s Speech which is not politically controversial is the modern slavery Bill. As a former law officer who has appeared in the criminal division of the Court of Appeal dealing with cases that concerned the trafficking of very vulnerable men and women from overseas to this country, some to be sexually abused and some to be abused in the world of employment, I am particularly pleased that the Government and, I hope, the House will pass that Bill in due course. It will add strength to the law that seeks to protect the victims of this most appalling form of criminal behaviour. We all know of examples of appalling gangmasters and people who traffic young girls and women into this country for sexual purposes. Anything that this House can do to protect the victims and to ensure that they are brought to a place of safety and allowed to lead fulfilling lives is much to be approved.

I want to see the modern slavery Bill advance for two other reasons. This morning, I received a letter from my constituent, Laura Palmer, who tells me that there is, in France, something called the Picard law. She writes that the law

“states it is illegal to take money off someone who has been mentally manipulated.”

That put me in mind of the case that was brought by the Moonies—the rather eccentric religious sect—some years ago against the Daily Mail, for which, I hasten to add, I was acting at the time. [Laughter.] It was a long time ago.

[Michael Ellis (Northampton North) (Con)]

I hope it paid well.

[Sir Edward Garnier]

I got married on the strength of the case, thank you very much. Indeed, I bought my first house on the strength of it. However, I want to make a serious point.

The sting of the libel in the case was that the Moonies brainwashed children and extracted money from them for the purposes of the Moonie organisation. Of course, a lot of those activities took place overseas, particularly in America. However, if the modern slavery Bill can criminalise the suborning of vulnerable adults and children for the purpose of encouraging them to join such sects and to give up their independence and what money they have for the benefit of the leaders of such groups, it is much to be encouraged. If my constituent, Laura Palmer, is right about the Picard law in France, I hope that the modern slavery Bill that we are about to introduce into this House will take account of that law and learn from it.

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[Mr Betts]

I entirely take the point that some people object. At a public meeting in my constituency three or four years ago, someone said to me, “We are not going to have homes for those sorts of people, are we?” Frankly, an elected representative has to stand up and face down that sort of prejudice, making it clear that everyone is entitled to a home. Many people who have lived in my constituency all their lives simply cannot afford to buy homes that their parents could have afforded to buy a few years ago. These people are entitled to live in that community; homes should be provided for them.

It is unfortunate that one of the biggest cuts in Government funding during this Parliament has been the 60% cut in funds for social housing. If we are to see house building rise in future, the private housing developers will play a part, but they are not going to build the quarter of a million homes we need. We are going to have to build more homes to rent. It is disappointing that the Government have not moved at least some way in that direction in the Queen’s Speech—failing, for example, to take the cap off local authority borrowing for house building, which they could have done. They could have provided 60,000 new homes immediately with no cost to central Government funds. They could have taken steps to alter the definition of the grant on housing association books and convert it into a genuine grant from the loan that it currently is. That would have freed up more borrowing for housing associations as well.

If we are honest about this in the long term—I say this to both Front-Bench teams—and if we are to build the homes that people need and build more social housing on the scale this country needs, we are going to have to put in more subsidy from the national public purse. That is the reality. We are not going to build the homes we need unless we spend more money on them. That is an uncomfortable fact and we tend not to want to discuss it before the general election, but it is, as I say, the reality of the situation. Whether it be housing associations or local authorities that do the building, they are going to need more assistance to make it work. We need to carry on arguing about that.

[Michael Ellis]

Does the hon. Gentleman agree with me on the avenue provided by brownfield sites, which is seldom properly explored? Development companies are always very keen to develop on greenfield sites because it is much cheaper for them. Does he agree that more effort should be made to direct developers to brownfield sites as well?

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[Albert Owen (Ynys Môn) (Lab)]

I apologise to you, Mr Deputy Speaker, and to those on both Front Benches that I will not be here for the winding-up speeches, but I have to leave the House for personal reasons.

I am pleased to follow the hon. Member for Fareham (Mr Hoban) because he was a courteous and able Minister. He was very courteous in dealing with the Equitable Life issues, which were complex. I will touch on pensions a little later.

I will start by welcoming some of the measures in the Queen’s Speech. Like other right hon. and hon. Members, I welcome the Modern Slavery Bill. It is an excellent piece of legislation. The draft Bill was rightly scrutinised before the Bill came before the House. I believe that the Bill will proceed with the good will of those on both sides of the House. It has been referred to by my hon. Friend the Member for Islington North (Jeremy Corbyn) and others, but I just want to say that I will be very proud to be one of the Members of Parliament who helps to push that legislation through.

It is important not to lose sight of one issue in respect of that Bill. We must have adequate resources to ensure that measures can be taken against those who traffic people across our countries. As someone who represents a port community, I know how difficult that will be. We must have the right numbers, the right resources, the right intelligence and the right kit to ensure that there is adequate screening at ports and that people are brought to justice when they are caught. I welcome that piece of legislation.

I also welcome the announcement that the Government made a couple of days before the Queen’s Speech on pubcos and the need for adjudicators. There has been cross-party consensus on that. The House works very well on such issues. Many pub landlords in my area have suffered over the past few years because of the unscrupulous way in which the pub companies have dealt with them. Many pub companies bought lots of property across the United Kingdom at the height of the market when prices were high and got their fingers burnt. The victims of that are the tenants who are in tied premises. The proposal is an excellent way forward.

I also welcome the plastic bag legislation. I say that as a Welshman because in my part of the world, we do not have carrier bags in many places. I feel quite stupid when I take my carrier bags with me to go shopping in London and other parts of England. People look at me rather oddly. Getting rid of carrier bags is not the end of the world. It is very good for the environment. It also helps in framing one’s thoughts and buying just the right amount of goods, rather than loading up one’s trolley too much, thinking that there will be all those free bags. The serious point is that it is good legislation and I will certainly support it.

I am rather confused about the measures that are coming out on pensions. I know that the Minister of State, Department for Work and Pensions, the hon. Member for Thornbury and Yate (Steve Webb) is very good on the theory of pensions. He knows the subject inside out. However, I am slightly concerned about the contradictions in the different pensions measures. We talk about liberating people to have choice on the one hand and collectiveness on the other. I want to see more detail before we move forward. We do need 21st century legislation on pensions because we are an ageing population, but I want to ensure that we mitigate the risks to workers in the private sector and to those who collect the state pension.

As a Welsh Member I do not often get the chance to engage with housing issues because of devolution, but I tell hon. Members from all parts of the United Kingdom that housing is a real and big issue whether someone lives in Scotland, Northern Ireland, Wales or England, and we need to build more houses for the future. We also need the skills and work force for that—more bricklayers, plasterers, structural engineers and various things—and it is in all our interests for the United Kingdom to have an adequate skills base to ensure that.

This is not a partisan issue. Previous Conservative and Labour Governments have built numbers of houses, but we now face a massive challenge because the demography of our country is changing so much. Elderly people need to downsize. Many people who have had strokes and suffer from various things are living longer, and we need to adapt and build accommodation that is fit for purpose. We must help young entrants with the Help to Buy scheme—I know from my daughters and their peers how difficult it is—but we also need to look after older and less able people, and ensure a good mix of housing stock for our future citizens. I welcome legislation that will help that to happen.

The consensus ends on energy and the cost of living. It was interesting to hear the Prime Minister’s opening remarks on the Queen’s Speech. Government Members are now all on message to say that the long-term economic plan is working, but they have short memories. In 2010 an emergency Budget by the Chancellor stated that the core of the economic plan was to eliminate the deficit by 2015, but that has changed. Cuts are being felt by communities across the United Kingdom, but we have not eliminated the deficit and that is a big failure of the Government’s economic plan. It was their words, their actions, and their failure, and they will be judged on that as in recent elections and in the future—[Interruption.] The hon. Member for Northampton North (Michael Ellis) laughs, but I do not think we should be laughing when 5 million people vote for third and fourth parties in protest. They are doing it for a reason and the Government should be wary of that.

[Michael Ellis]

rose—

[Albert Owen]

I will take an intervention if the hon. Gentleman wants to defend the fact that the deficit has not been eliminated. [Interruption.] The Whip states from a sedentary position that the Labour party is not in power, but this Government said that they would eliminate the deficit and did not do so. They also said they would not raise VAT but did so straight away. They are raising taxes and ordinary working people across the country are paying more for fuel, not less, because every time they buy £1 of fuel, they pay 2.5p extra. The reality is not the mythical 20p that the Government talk about; it is the real 2.5p on every pound when people purchase fuel.

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[Michael Ellis]

Does the hon. Gentleman think that he is rather like the hypothetical arsonist who starts a fire somewhere and then criticises firefighters for not putting it out quickly enough? Labour has the responsibility, which it is abrogating, and this Government have been fixing Labour’s problems.

[Albert Owen]

The hon. Gentleman needs to get out and about. That might be what Conservative central office is telling him, but he needs to get out across the country and ask himself why people are genuinely suffering as a consequence of the actions his Government have taken. Blaming the Labour party is old hat and will not work. Carry on doing that, and we will see at the next election that the Government are judged on their record, not that of previous Governments.

I want to say the three letters that the Prime Minister will never admit to—VAT—because this is about trust in politics. When the leader of a party tells the country that he will not do something and then immediately does it, the country does not forget. This is about trust in politics and this Prime Minister. Indeed, to be fair to the Deputy Prime Minister, before the election he warned that the Conservatives would put up VAT, but he has now jumped into bed with them and is pushing those reforms through.

I think there is a big challenge for energy, and whichever party was in government would have had to reform the energy market. I supported many of the reforming measures in the Energy Bill, but the cost of living crisis has pushed up energy prices beyond what is reasonable and what households can afford. I think it is a missed opportunity for the Queen’s Speech not to contain a consumer Bill for helping with energy prices.

The Government ridicule the fact that the Opposition have come up with a energy freeze, which they say is populist, yet energy companies are starting to do it. The Government need to take a lead on that and not allow energy prices to go beyond the means of ordinary people. The hon. Member for Angus (Mr Weir) mentioned people who are off-grid. The Queen’s Speech contains an infrastructure Bill, but no mention of extending gas mains to many households in the United Kingdom. Many off-grid households have to pay a heck of a lot more for their fuel. They do not benefit from dual fuel bonuses and are not able to switch in the way that the Energy Secretary boasts about. They are also paying considerably more for their energy. The Winter Fuel Allowance Payments (Off Gas Grid Claimants) Bill promoted by the hon. Member for Angus would help to alleviate that, but we need to go further and build infrastructure.

When the Energy Committee, of which I am a member, discussed shale gas three or four years ago, the Government dismissed it because they did not think it worth taking forward—hon. Members can see the responses to that report. We then had another report, and I think it is important to have energy security. Rather than importing foreign gas and oil, we should produce our own if the potential is there. However, I am confused about the way those measures have been handled, moving towards exploration of shale gas, and from what I heard from the Energy Secretary today, things are no clearer.

We must bring communities with us to enjoy the benefits of shale gas together, and there should be local benefits. I am certainly not a nimby and I represent a constituency that has a nuclear power station, offshore wind farms in close proximity, too many onshore wind farms—they need to be moved as new development takes place—and tidal power. I think we should look at the bigger picture, and find local but also national benefits from a gas and oil bonanza, whether it be in the North sea or from shale. We should be putting aside money and ring-fencing some of those profits for local communities and for national benefit, and that could help to fund extension of the gas mains that are causing problems for many of our communities. I know that those on the Opposition Front Bench are listening to these arguments, just as they listened to arguments about people who are off-grid being protected by the regulator. The market does not work in the same way for people who are off-grid, as I explained, and they do not have the protection of a regulator. The Labour party is moving forward on that issue, and such measures could easily have been included in the Queen’s Speech.

People are suffering on a day-to-day basis from a cost of living crisis in the real world. Hon. Members should not take my word for that; they should listen to the former Chancellor of the Exchequer, the right hon. and learned Member for Rushcliffe (Mr Clarke). When he goes out and about and listens to people, he hears that there is a problem. There is a problem, and the Queen’s Speech should have helped to deal with it. Over the next 11 months I think that we will go at a slow pace and little will be achieved. There will then be an opportunity for real choice at a general election, and this failed Government will be turfed out because they have failed to do the things they said they would, and they have done many things that they said they would not do.

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[Michael Ellis (Northampton North) (Con)]

It is a pleasure to follow the hon. Member for Brent North (Barry Gardiner). I thought for a moment he was going to take us through the entire Napoleonic code, so we can be grateful that he did not do that. One part of the French example that I am sure Government Members would not want to follow is their exorbitantly high tax rate, which I understand has resulted in so many people leaving France that the Mayor of London is now Mayor of, in effect, the fourth largest French city. No doubt we can have regard to other aspects of French history.

I rise in support of the Queen’s Speech. Some on the left, and in the Labour party in particular, have mentioned the small number of legislative proposals, but I think that less, not more government is a good thing. State legislatures in some parts of the United States sit for only three or four months a year, and they manage to function in their societies perfectly adequately, with an executive, a judiciary and legislature, and get through their affairs without too many problems. Statist functionaries on the Labour Benches may well find it attractive just to produce Bill after Bill, but I do not find overweening Government attractive. There is the concept that less is sometimes more. Labour may of course find that difficult to understand, bearing in mind that we have seen more from Labour in all these areas—more debt, more of a deficit, more tax and more unemployment.

[Bob Stewart (Beckenham) (Con)]

Less also means more time to get things right.

[Michael Ellis]

Yes, indeed, and careful consideration of measures is crucial. I practised law in the criminal justice system in Northampton for years before I entered the House, and I witnessed the criminal justice legislation repeatedly passed under the Blair Government and the subsequent Labour Government. Frankly, much of that legislation only served to grind to a halt the court process in England and Wales. It did not work, and in many cases it created further problems. It is important to get legislation right.

We want a Britain that pays its way in the world and a Britain that is more competitive. I wholeheartedly disagree with Labour Members who criticise concepts of profit and commercial endeavour. We want hard-working people and to give them peace of mind for the future, and this Queen’s Speech continues that series of policies. This Government have carried through such measures during the past four years, and will continue to do so for the next year.

For example, the deficit is down by a third. We still hear criticisms about how fast we are able to get down the deficit. As I have previously pointed out to the House, the reality is that for Labour to make such criticisms is rather like an arsonist criticising a firefighter for the time taken to put out a fire. The deficit is down by a third, and income tax has been cut for 25 million people by an average of more than £700.

[Julie Hilling]

The hon. Gentleman is praising the Government for reducing the deficit by a third—we are, of course, always pleased when the deficit reduces—but will he explain why they have not met their target of getting rid of the deficit over the term of this Parliament? I appreciate that the Parliament has a few more months to run, but it does not seem to me that they will hit the target of a 100% reduction.

[Michael Ellis]

I am pleased to hear noises from Labour Members about their wanting us to go faster in reducing the deficit. We are doing what we reasonably can, while adopting policies that will be fair across the board and across society, to make good the damage to the British economy that we inherited from the previous Labour Government. That is why we have created 1.5 million more jobs, which is an unprecedentedly large number of new jobs. They are quality jobs: in many cases, they are full-time jobs. I have heard Labour Members castigate such an achievement or try somehow to negate it by reference to the type of jobs created and the like, but these are new jobs that in many cases are giving people security and peace of mind. The huge volume of new jobs certainly beats the record of the previous Government and every Labour Government whom I can think of, going back generations. At the end of their term, unemployment was higher than the level they inherited.

[Mr Pickles]

Always.

[Michael Ellis]

I am told that that has always been the case under every Labour Government.

[Julie Hilling]

I really cannot let the hon. Gentleman get away with the outrageous statement that the previous Labour Government caused a global economic crash that started in America. My right hon. Friend the Member for Kirkcaldy and Cowdenbeath (Mr Brown) may have been very powerful, but I do not believe that he caused the economic crash that started in America. Is the hon. Gentleman really trying to tell the House that the global economic crash was caused by my right hon. Friend?

[Michael Ellis]

The economy that this Government inherited was 20th out of the G20 leading industrialised nations. It was at the bottom of the heap. That was the responsibility of the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown), Tony Blair and the Labour party. That is the appalling legacy that we are seeking to improve.

Under this Government, there are 1.7 million more apprentices. We are looking to give people opportunities. Large numbers of apprenticeships have been created to do that. There are better standards and better schools for young people. Those are significant achievements of the past four years and the Queen’s Speech will follow through on them. Only by sticking to our plan will we secure a better and brighter future for Britain.

I accept, as the hon. Member for Bolton West (Julie Hilling) has pointed out, that there is more to do. That is why we seek another term. In my constituency of Northampton North, the rate of unemployment is 33% lower than it was in April 2010—the month before the general election. Youth unemployment is 41% lower than it was. However, there is more to do and the rate of unemployment is still too high. Like many colleagues on the Government Benches, I organise jobs fairs on an annual basis. During the last jobs fair that I organised, more than 2,000 people came through the doors and more than 40 companies were represented, including medium, small and large companies and charities. I accept that there is more to do, but we must stick to the long-term economic plan and get it right. The Chancellor of the Exchequer, the Prime Minister and all those on the Treasury Bench have been getting it right and we are seeing the results.

Her Majesty referred to the infrastructure Bill. Investing in infrastructure is a key part of the country’s long-term economic plan, because we have to think to the future, like the Victorians and many of our predecessors did. They thought of future generations. Stable long-term funding for the strategic road network is very important and is anticipated in the coming Session.

I have lobbied persistently—some might say nagged—on the issue of potholes. That might seem to many to be a micro-economic issue, but it is significant. In my constituency, and no doubt in other parts of the country, the issue of potholes is of serious and significant concern. I got together a petition to seek more assistance in that regard. I am happy to say that the Chancellor of the Exchequer announced in the Budget that he would allocate a further £200 million towards—

[Bob Stewart]

Northampton.

[Michael Ellis]

Not quite towards Northampton, sadly. We will find out in due course how much Northampton will get. However, I am very pleased that the Government have taken that move.

Motoring groups have welcomed that fund to fix roads, although, as ever, they wanted more. I, too, would like to see more money invested in our roads because the amount of road traffic only ever increases. There is an increasing number of incidents that are caused by poor quality road surfaces. Frankly, there are very human reasons why we need to fix the roads. They are dangerous for cyclists, pedestrians and other road users. The poor quality of our roads is a danger to life, as well as to livelihoods. The cost of compensation, insurance and the like is going up. That affects local taxpayers as well as national taxpayers. There are therefore raw economic reasons why we need to do something about potholes.

That is why I am very pleased that, thanks to the careful measures that the Chancellor of the Exchequer has taken over the past four years and to the fact that he has stuck to the path, sometimes in the face of a tsunami of criticism from the Labour Benches, he has improved the state of the economy to such an extent that he has been able to allocate £200 million to fixing potholes. Northamptonshire has bid for some of that, and I hope to hear relatively soon—as, no doubt, do other areas—how much my area will receive.

I think it right that local authorities bid for funding. As the Secretary of State for Communities and Local Government will know, some local authority areas perform much better than others and have a better track record of getting it right. It is only right that they show why they can operate more efficiently and successfully, or perhaps more expeditiously than others, and why they should therefore be rewarded for their endeavours and competence.

One measure not in the Gracious Speech is the Medical Innovation Bill, which Lord Maurice Saatchi introduced today as a private Member’s Bill in another place. It is to be hoped that in due course it might find its way to this honourable House. It is a completely non-partisan and highly important measure that is designed to make it easier for doctors to treat those who are suffering from cancer and other life-threatening conditions more successfully.

If passed by Parliament, the Bill will allow doctors to take a step away from the well-worn path currently followed in the treatment of cancer. For some cancers, the treatment has not changed literally for decades, and doctors—oncologists in particular—know that they will follow that path with their patient, and that there will be the same result at the end of that path. They can even particularise to quite a fine degree how long a patient may have left to live. With proper safeguards—I emphasise that—and with the fully informed consent of the patient and the extra safeguard of a multidisciplinary panel that can oversee the patient’s authority and what the doctor wishes to do, it is right that doctors ought to be able to diverge slightly from that path to see whether something slightly different can work. Only through those methods will we allow doctors to continue their good work and eventually find a cure for cancer.

[Nia Griffith]

Does the hon. Gentleman agree that those who are suffering from multiple sclerosis and some cancers who have found that low-dose naltrexone can be effective will also benefit if that Bill is passed? At the moment, some GPs who are very much in favour of prescribing it are afraid to do so because of consequences under the present system if something were to go wrong.

[Madam Deputy Speaker (Dawn Primarolo)]

Before the hon. Member for Northampton North (Michael Ellis) replies, may I point out that some Members have been sitting in the Chamber all afternoon? Five Members are waiting to speak and others have already spoken. The wind-ups will start at half past 4. We are running out of time and I hope we will be able to include everybody in the debate this afternoon.

[Michael Ellis]

I am coming to a conclusion, Madam Deputy Speaker. I agree with what the hon. Member for Llanelli (Nia Griffith) said, and many people will benefit from the Medical Innovation Bill. That is why I hope it will have cross-party support as and when it finds itself in this Chamber.

[Several hon. Members]

rose—