Oral Answers to Questions
Debate between Neil Parish and David Davis(8 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Neil Parish (Tiverton and Honiton) (Con)
Debate on the Address
Debate between Neil Parish and David Davis(11 years, 7 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Davis
There is an element of that, and that is what I was alluding to just now. There is no doubt that the system makes some mistakes, but I have the advantage of having been an MP for a long time, and I can remember when we changed the disability rules the other way, and we had a 400% increase in people claiming disability benefits of one sort or another. It was the right direction to go in, but it went vastly too far. The problem is that we now have a situation in which people are basically taken completely off the job market. To be frank, it suited past Governments of both political persuasions to have those people out of the job market, because the figures looked better, but that does not mean we do not now have to put this right.
My argument here—it is the argument I will make throughout what I have to say in the next five or so minutes—is that the difficult decisions we face now have to be faced up to, but we must always, time and again, come back and apply a fairness test. The hon. Gentleman would probably agree with me about that, although maybe not about where that test would fall.
I particularly approve of the proposed changes to pensions. Last week I was worried that the Government effectively were proposing to ignore the benefit that arises from stay-at-home mothers, but, in fact, the reverse is true. The Queen’s Speech states that the Government will
“create a simpler state pension system that encourages saving and provides more help to those who have spent years caring for children.”
If there is one thing in the Government’s economic strategy that I disapprove of it is the presumption that the only useful mother is one that goes out to work. Raising children—particularly raising three or four children—is a difficult task in its own right and a very important social task, and I am surprised that a Conservative Government, of all Governments, do not recognise that more and do more about it. This at least appears to be a move in the right direction, and if it lives up to the advertising in the Queen’s Speech, I will support it enthusiastically.
Indeed, I would go further and say that the Conservative party had a manifesto commitment to have transferable tax allowances for married couples as well, and I see no reason why we should not hold to our manifesto commitment. I understand that is budgeted for in the Treasury anyway, so why do we not do it?
The one element of the Leader of the Opposition’s speech that I sort of half-agreed with was that we have not been fast or robust enough in our approach to banking reform. There has been a lot of talk recently about populist measures—about “Thatcherite giveaways” of the nationally held shares in the banks. That is neither here nor there to me. What matters is the structure of the banks. We should be breaking up our banks. At the level at which economies of scale run out in commercial banking, we could have 30 high street banks in the UK. Some 30 or 40 years ago, that is exactly what we did have, and I have to say levels of service in banking have gone down since then, not up.
We have ignored competition law. We have ignored the virtues of competition and the impact on stability of having banks that are too big. We need measures on that. They are not in today’s Queen’s Speech because the Banking Commission is yet to report. As soon as it does report, we must have urgent action. This is not something we can put off for five years. We should do it now.
Neil Parish
I agree with what my right hon. Friend is saying about our banking system. I am finding that many businesses in my constituency are still being denied credit, and especially credit at affordable rates. Is he finding the same thing happening in his constituency? If we had greater competition between more banks, we could get the rates for lending to businesses down.
Mr Davis
My hon. Friend is absolutely right. A large part of the reason for that is the state of the UK banks’ balance sheets. They are getting money effectively for free, but they have got such bad, or untrustworthy, loans on their balance sheets that they dare not lend money, and the Government are putting constraints on them to limit their lending, too. The outcome is that our small businesses in particular are having a terrible time. Patches are being put over this problem, such as the Chancellor’s mortgage support scheme in the Budget, but we need to sort out the problem at source.