Debate on the Address

Michael Fabricant Excerpts

Tuesday 10th May 2022 Commons Chamber

[Michael Fabricant (Lichfield) (Con)]

My right hon. Friend is echoing the words of the Mayor of the West Midlands, Andy Street, who has said that it cannot be Governments who create wealth; we merely have to provide the opportunity for businesses and individuals to create that wealth.

[John Redwood]

I am glad that all three of us agree on this matter, and we can proceed on that basis.

So what do the Government need to do? My first recommendation to my right hon. Friend the Chancellor is that he needs to have a new framework for the conduct of our economic policy. We are still running on Maastricht-lite. We still think that the way in which to control the economy is to control the debt and the deficit. I have news for the Chancellor: if we get growth and inflation right, the debt and the deficit will come closer to taking care of themselves. If we get the growth right, we will have much less of a problem with the debt and the deficit.

In the last year, when the United Kingdom led the growth tables for the advanced world, an unremarkable thing happened. It seemed very remarkable to the Treasury, but it seemed unremarkable to me. The deficit came tumbling down. According to one set of figures—and they still keep changing—it came in at £90 billion below the Office for Budget Responsibility and Treasury forecast, because with more growth comes more activity, more incomes and more spending, so the Treasury can collect more VAT and income tax. It was mainly extra revenues that came in, because we had that faster growth.

In my view, the debt and the deficit matter but should be subsidiary. The two main aims of economic policy should be a 2% inflation target, embedded as a Government target as well as a control mechanism on the Bank of England, and a complementary 2% growth target—not that exacting in the context of 20th-century experience in the United Kingdom, but fairly challenging in the context of the current century’s experience because of the disfiguring effect of the big banking crash and great recession in the middle of its first two decades.

Let me deal first with inflation. Once it gets out of control, it is extremely damaging to everything. It ends up causing shortages on the shelves, lack of supply, businesses crashing, and people being thrown out of jobs. We do not want to get into the accelerating double-figure inflation that some countries have suffered all too much. Anyone who wants to see what happens with the playbook should look at what is happening in Turkey at the moment, and at what has happened, on a grotesque scale, in Venezuela, where the generous state kept printing and kept borrowing and ended up destroying more than half its national income and much of the potential of the oil industry, which used to pay for everything because it was nationalised and incompetently run.

Those extreme versions need to be ruled out, and of course the amount of money created needs to be controlled; you need to keep an eye on when you can afford to borrow in the public sector and how much. However, that is a second-order issue in comparison with promoting growth and inflation targets as the main aims. The inflation target cannot simply be delivered by a central bank. Unfortunately, the Bank of England made a policy error, to which I drew attention beforehand last year. I think that it went on printing money for longer than it should have, and that its policy was too loose for too long. I was fully behind its huge injection of money and ultra-low interest rates in the previous year because of the huge shock administered to the economy, but it now looks as though it made a mistake, which it has subsequently corrected. It should not overdo it, though. It is no longer printing any money in excess, it has put up interest rates on three separate occasions, and money growth is now much more constrained in our country; but the Government must also put their shoulder to the wheel to curb various types of inflation.

At present one of the inflationary factors hitting, in particular, the budgets of those in the lower income areas is the huge price inflation in energy and food. That is caused by supply shortages. We were already pretty short of energy in western Europe because of the policies being pursued and because of the lack of natural resources on the continent, where there is not any, or much, oil and gas outside the Netherlands. We were already very short of basic energy. Then, of course, the dreadful invasion of Ukraine came along and caused so much damage—most directly to the people there who have such dreadful shocks from it, but there has been a wider economic shock for the rest of us. As a result of policy, Russian oil and gas are being gradually withdrawn from our supply systems, so we have exacerbated the shortage, for understandable and good political reasons, to try to help Ukraine in its battle against the Russian invasion.

As for food, we see a shortage arising as markets are heralding the sad likelihood that there will not be a lot of crop coming out of Ukraine this year and that a big source of edible oils and of grains will not be producing and exporting in the way that the world market needs, so we see great price pressures there.

So there is a need to engage Government, and I am pleased to see that the Government are working towards energy self-sufficiency and more food production. Those are crucial as a response to what has just happened and as security for the future. If we want to keep inflation down in the future, the one thing we can rely on is producing more of our own energy and growing more of our own food, which will give us more control over the pricing, particularly with something like gas, which of course is traded on the world market only to the extent that there is either pipeline capacity or liquefied natural gas capacity, so a lot of the gas cannot be traded internationally. American gas cannot be sent to Europe in huge quantities because there is no pipeline, and there is a limited amount of LNG capacity. America has much lower gas prices—and nothing like the cost of living problem that we have with energy—as a result of producing a lot of its own gas and therefore having a domestic market that clears at a lower price than the current very spiked world gas prices. I trust that the Government will pursue greater national self-sufficiency in key areas, including not only basic energy and food—we can grow a lot more of our temperate food—but crucial technologies, which the Government are becoming increasingly sensitive about.

I trust that when the Government turn their mind to the detail of their energy legislation, they will use it to facilitate the production of more domestic oil and gas. I think there is more general agreement today, after the debates of recent months, on the proposition that we ought to re-enter the North sea and that, instead of overseeing a pretty rapid rundown in its output, we should go through a transitional period, maybe this decade, and get more oil and gas out of the North sea. That surely makes more sense. It makes green sense because the CO₂ output created by burning our own gas is considerably less than that of the elaborate process of carrying it halfway round the world and having it compressed and decompressed so that it can travel as LNG. It is about half the CO₂ generated.

More importantly from the point of view of levelling up and growth in our public finances, we would be paying the tax to ourselves. All gas and oil attracts massive taxation from the countries that have the good fortune to produce it. If we buy gas from Qatar—or when we were buying oil from Russia—we pay them a huge amount of tax, which is revenue that we could pay to ourselves if we developed more of our own production. Our own Treasury could then either spend it or give it back to us in some other form, such as a rebate or grant.

There is a more sensitive issue about onshore gas, and people are often rather opposed to that idea. I suggest that no landowner or council should be made to have onshore gas production if they do not want to. That would be a democratic decision over permissions and it would be a decision of those who have the land or property nearby as a result. I think that some areas would have it—suitably protected and environmentally tailored, as it could be. We already have some onshore oil and gas. Wych Farm, for example, is in a very beautiful part of the world and it produces oil quite happily onshore. The Government need to put into law a framework where landowners and communities that agree to participate in onshore oil and gas development should receive a participation in the royalty of some sorts, or free gas to consumers, or whatever.

Easter Recess: Government Update

Michael Fabricant Excerpts

Tuesday 19th April 2022 Commons Chamber

[The Prime Minister]

I repeat what I have said. I know that the hon. Gentleman has experienced bereavement during the pandemic and I am sorry for his loss. I repeat my apologies for what happened in No. 10.

[Michael Fabricant (Lichfield) (Con)]

I was desperately sad to hear about my constituent John Robinson. My own best friend’s mother died in hospital and he was not able to see her. I recall, of course, that the Prime Minister’s mother also died during the covid crisis. We have all suffered from these heart-wrenching tragedies and none of us should forget it. I want to ask a quick question regarding Ukraine. The Prime Minister has announced that he is going to provide new, modern, mobile ground-to-air missile systems. How will we be able to train the Ukrainians during this war situation so that they can be put into use before it is too late?

[The Prime Minister]

I thank my hon. Friend and repeat my condolences to his friend. On the Starstreak and other systems that we are using—that we are supplying to Ukraine—the Ukrainians are now being trained, as he can imagine, outside the immediate theatre of conflict.

Ukraine

Michael Fabricant Excerpts

Tuesday 22nd February 2022 Commons Chamber

[The Prime Minister]

We certainly are taking on the bankers. We are hitting Russia’s financial interests, and we will continue to hit them harder.

[Michael Fabricant (Lichfield) (Con)]

Eighty-five years ago, a predecessor of the Prime Minister talked about “a quarrel in a faraway country between people of whom we know nothing”. Does not the concordance between both sides of the House today demonstrate that that is not the case when it comes to Ukraine?

[The Prime Minister]

My hon. Friend is so right. I think that everyone who knows people in the Ukrainian community in Britain, which is so large and so active and makes such a fantastic contribution to our life, feels a huge amount of sympathy for the people of Ukraine today. This is a country with which we have familiarity and which we understand. It is a country that is a democracy and shares our values. That is what is at stake today.

Living with Covid-19

Michael Fabricant Excerpts

Monday 21st February 2022 Commons Chamber

[The Prime Minister]

First of all, we are not dropping the testing until the beginning of April, as the hon. Gentleman knows. It is thanks only to the massive financial firepower of the UK that we have been able to run the biggest testing operation in Europe plus the fastest vaccination roll-out.

[Michael Fabricant (Lichfield) (Con)]

Let me ask my right hon. Friend to cast his mind back to January last year, when Chris Whitty said that there will come a time when covid will be the same as flu, from which there are 7,000 to 20,000 deaths each year. At that time, there was no comment against him from either the Labour party or the Scottish National party. Now that we have excess deaths at minus 9% of what is normal at this time, is my right hon. Friend as baffled as I am about the attitude that Labour Front Benchers now take?

Sue Gray Report

Michael Fabricant Excerpts

Monday 31st January 2022 Commons Chamber

[The Prime Minister]

Sue Gray has published everything that she can. I propose that we wait until the conclusion of the inquiry. In the meantime, I think it peculiar that the report is being simultaneously hailed as utterly damning and condemned for not having enough in it—it cannot be both.

[Michael Fabricant (Lichfield) (Con)]

President Truman had on his desk, “The buck stops here”, so the Prime Minister was right to apologise for the events that happened in No. 10 Downing Street. Two weeks ago, I reminded Tom Harwood that Tony Blair suggested that there should be an Office of the Prime Minister, so that it could be governed not from 70 Whitehall but from the building itself. Will the Prime Minister tell me how he envisions the office working? Will the permanent secretary be based in No. 10, controlling what civil servants do in No. 10?

[The Prime Minister]

I am grateful to my hon. Friend. I think the House understands, even if many people outside do not, that No. 10 hosts more than 400 officials on a busy day. They have a huge amount to do —[Interruption.] No, they are working very hard. We need to make sure there are proper lines of authority and that we sort out the command structures, and that is what we are doing.

Oral Answers to Questions

Michael Fabricant Excerpts

Wednesday 12th January 2022 Commons Chamber

[Kemi Badenoch]

We have put, on average, £1,000 a year more into the pockets of the lowest earners through changes to universal credit, increasing the minimum wage next April to £9.50 an hour, and helping with the cost of fuel bills. Our multibillion plan for jobs, which was recently expanded by £500 million, will help people across the UK to find work and to boost their wages and prospects, and this will disproportionately benefit people in minority ethnic groups.

[Michael Fabricant (Lichfield) (Con)]

In May 2020, Professor Sarah Gilbert, with help from the Downing Street team, was working on the AstraZeneca vaccine. What more can my right hon. Friend do to encourage more women in biomedicine?

[Elizabeth Truss]

My hon. Friend is absolutely right about Sarah Gilbert’s achievements. She was part of our Gender Equality Advisory Council, working across the G7 to give women more opportunities and to enable more entrepreneurship, ideas and innovation around the world.

Covid-19 Update

Michael Fabricant Excerpts

Wednesday 5th January 2022 Commons Chamber

[The Prime Minister]

It is very important that everybody should get the ambulance service that they need. That is why we are investing £55 million more and that is why there are 500 more people on the ambulance staff than there were in 2018.

[Michael Fabricant (Lichfield) (Con)]

Is my right hon. Friend aware that the eyes of the world are literally upon us, with The New York Times and newspapers in France, Germany and Israel, among others, talking about the Prime Minister’s bold initiative in sticking to plan B and recognising that omicron is less serious than previous variants? They say that Britain was the first to recognise that, and that we were the first to start a vaccine programme in Europe and also the largest testing programme in Europe. Will my right hon. Friend still, however, maintain a watching brief on other variants, because there may be more serious variants in the future—we just do not know? Will he also take this opportunity, again, to correct what the right hon. Member for Ashton-under-Lyne (Angela Rayner) said and say that we are not cancelling any cancer operations?

[The Prime Minister]

Yes indeed. I really think that she should withdraw that because it is not—[Interruption.] She did say that. [Interruption.] She did, and it was totally untrue. It is because we are the most boosted and the most tested, and because we have the most antivirals of any European country, that we are able also to be the most open. That is thanks to the efforts of this Government, but also hundreds of thousands of people up and down the country—millions of people—who are doing the right thing.

Oral Answers to Questions

Michael Fabricant Excerpts

Wednesday 5th January 2022 Commons Chamber

[Simon Hart]

The UK Government have been doing everything they can, including providing substantial investments in Wales under my jurisdiction, to address a number of the challenges that have been presented. As I said before, there is no appetite whatsoever in Welsh businesses and communities to keep trying to go back four or five years and pretend that the referendum result did not happen. It did happen, it happened in Wales and it got a resounding majority. Those businesses are reflecting that position.

[Michael Fabricant (Lichfield) (Con)]

Having spent Boxing day and new year’s in Wales, the home of my beloved mother, I met a number of business people in the evening who said that Mark Drakeford’s plans for covid restrictions were nothing but political posturing and that they were damaging their economy. Have they got it wrong?

[Simon Hart]

My hon. Friend makes a good point. There has been a huge effort on the part of the UK Government and the Welsh Government to maintain public confidence through what has been an incredibly trying period, and a number of people in Wales were happy to give the First Minister the benefit of the doubt. However, the recent raft of announcements, including the confusing examples that I gave the House a moment ago, have got even the most loyal people doubting whether he is still making the right decisions.

Oral Answers to Questions

Michael Fabricant Excerpts

Wednesday 1st December 2021 Commons Chamber

[Bob Blackman (Harrow East) (Con)]

I congratulate the President of COP26 on the excellent work that he has done for this country and for the world. Will he also inform the House what discussions he has had with the Treasury about what we as the United Kingdom Government can do to help the countries that are threatened?

[Michael Fabricant (Lichfield) (Con)]

What a creep! [Laughter.]

[Alok Sharma]

I will ignore that additional comment. I thank my hon. Friend the Member for Harrow East (Bob Blackman) for his very kind words. A number of things have happened in relation to the UK. The Chancellor has set out the conditions to restore the 0.7% commitment and we know that, on the latest forecast, that will be restored by 2024-25. In addition, the UK worked with other countries to ensure that the $100 billion delivery plan also set out when additional funding will be made available to support developing countries.

G20 and COP26 World Leaders Summit

Michael Fabricant Excerpts

Wednesday 3rd November 2021 Commons Chamber

[The Prime Minister]

This is a point I have now heard several times from those on the Opposition Benches. Without having perhaps all the technical expertise, I am very impressed by the tidal proposals I have seen. What I will undertake to the right hon. Gentleman is not an absolute commitment on contract for difference or the strike price for tidal power, but I will certainly go away and look at it again.

[Michael Fabricant (Lichfield) (Con)]

Well done, Prime Minister, on motivating people and delivering that which others were saying could not be delivered at COP26 so far, just a couple of days into a two-week programme. May I invite him to visit Rolls-Royce, which is working on developing a 100% sustainable fuel jet engine for aviation, and to put his considerable weight—I do not mean that in a personal manner; I mean as Prime Minister—behind the gigafactory proposal for Coventry in the West Midlands Combined Authority?

[The Prime Minister]

I thank my hon. Friend. It was, in fact, only a couple of weeks ago that the entire Cabinet was in Bristol with Rolls-Royce, looking at what it is doing with GKN and other companies on sustainable aviation. We are also looking actively at what we can do to support a gigafactory in the Coventry area, but obviously, there are commercial discussions under way.