amendment of the law

Debate between Mike Thornton and Jim Cunningham

Monday 25th March 2013 Commons Chamber

[Mr Jim Cunningham (Coventry South) (Lab)]

Listening to Government Members this evening, one would think that there was no economic situation in 2008, but in fact it started in America because of the irresponsibility of the bankers—not only in this country, but in America. It is also worth reminding the House, when the Government try to blame those on the Labour Benches, that in his last four or five weeks as President, George Bush pumped billions into the American economy, because he realised right away that the fault lay with the American banks.

I remind Members, too, of the catastrophe associated with Lehman Brothers, with Fannie Mae and Freddie Mac, for example. We need to remind the Government of those aspects because the Government were very light, to say the least, when it came to dealing with the bankers who caused the problem in the first place. What they have tried to do is to blame the previous Government for things that they never understood at the time. I remember that when we were in government, their solution to the problem was “Oh, well, we have too much red tape and we must cut it”. I do not remember any Members now on the Government Benches providing any solutions whatever at the time, yet they are pretty good at coming here and trying to blame us for a situation that their friends, the bankers, caused in the first place.

[Mike Thornton (Eastleigh) (LD)]

Under whose regulatory system did those failures take place?

[Mr Cunningham]

It was the previous Conservative Government, and that has never been acknowledged, so the hon. Gentleman should not rewrite history.

Another interesting aspect of the present economic situation is that local government has taken the brunt—33.3%—of the cuts. People talk about growth, without realising that it is only through local government that growth will happen. It is worth noting that in the west midlands, for example, unemployment is probably the highest in the country with about 8.5% unemployed, while for young people up and down the country it is as high as 21%. Given those levels of youth unemployment over which this Chancellor is presiding, I think it is offensive when he talks about aspiration and the aspiration nation. The UK has the third worst level of youth unemployment in the developed world; of the OECD countries, only Spain and Greece have higher levels. Since the recession started, the UK has experienced the fastest rise in youth unemployment of the G8 countries.

Speaking about aspiration, the Chancellor is dividing people into “aspirants” who aspire to prosperity and others. It is as though he does not know or does not care that there is a national lack of job opportunities available to young people. It is simply disgraceful for the Chancellor to talk about aspiration when one in five young people leaving school might not find work. The Government need an extensive programme to create jobs for young people and should support them in finding those jobs and training them.

Let me deal with manufacturing. I have often spoken about the west midlands and its success in manufacturing, and I strongly believe that the manufacturing sector can drive local economies and boost growth. I was therefore alarmed at the Budget’s lack of discussion of manufacturing industry. The Chancellor’s only mention of it was his claim that for the first time in 40 years we are manufacturing for export more cars than we import. Well, that started under the Labour Government and certainly not under the present Government. The Government try to take the credit for the success of Jaguar Land Rover, but Labour Members know that the previous Labour Government supported that industry.