(7 years, 4 months ago)
Commons ChamberMy hon. Friend is entirely right. The Labour party would constantly have us believe that somehow we are being soft on the wealthy and hard on the less well-off when the precise opposite is true. The top 1% pay over 27% of tax, and the wealthiest 3,000 people in our country pay as much as the poorest 9 million. Under Labour, the poor paid more tax relative to the wealthy, not less. No wonder that under our policies income inequality is at a 30-year low.
12. If he will make an assessment of the potential merits of merging income tax and national insurance.
The Government are committed to simplifying the tax system. In 2015, we asked the Office of Tax Simplification to provide an independent assessment of the alignment of income tax and national insurance contributions. We have already taken action in a number of places highlighted by the report. However, alignment now would cause significant upheaval for millions. Now is not the right time for further reform in this area.
I welcome my right hon. Friend to his new ministerial role. Last year the Office of Tax Simplification said that bringing national insurance and income tax closer together would create a simpler and fairer system for business and taxpayers. As national insurance and income tax revenues go into the same pot, would it not be simpler and clearer to merge the two and have one single income tax?
As I said, we recognise the value of merging national insurance and income tax where that is practical and achievable, and there are some measures coming up in the Bills in the autumn that will address that in certain circumstances, but to do it right across the piece at this stage is perhaps a long-term aspiration rather than one we will be addressing in the short term.
(10 years, 8 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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My hon. Friend is right. If that figure of 58% by 2020 is correct—I have no reason to doubt him—it is a concern, because we are told so often that we need a basket of green energy that is not targeted just towards wind.
Another green energy that is much more acceptable to Devon is the biodigester, which uses waste from farms and food waste and creates energy all the time. It works not on the nuclear process, but generates gas and electricity throughout the whole day and, therefore, again contributes to a base load in electric supply.
One bone of contention with the whole system is that wind turbines do not produce electricity for a sufficient length of time to make them necessary in our most beautiful countryside.
In my constituency, we had an application at Bampton Down farm for 20 wind turbines, 22 metres high, in a prominent position on Bampton Down, above the Exe valley. This is the highest land south of Exmoor and east of Dartmoor in Devon and it goes down to semi-permanent pasture land. That application has, at the moment, been withdrawn and I hope it stays withdrawn and disappears. But is the planning policy in place strong enough to stop that coming back and will it be strong enough to stop the application being awarded on appeal?
At Blatchworthy farm, an application for nine wind turbines was withdrawn, but for how long? At Highlands farm, there was an application for one wind turbine, with a height of 34.2 metres; again, that was withdrawn, partly after local objections from Hemyock parish council. An application at Plainfield farm in Withleigh for one 100kW wind turbine with a maximum height of some metres was withdrawn. At Rifton farm there was an application, which is still going on, for a turbine with a maximum height of 77 metres. At Sydenham farm, one wind turbine has been rejected
Planning applications are happening all the time in my constituency. Planning policy needs to be so much stronger, so that people know that, under the process, there can be local objections and that they can, along with the local and district councils, put a case together and be certain that they will be able to reject large turbines in prominent positions. Turbines need to be in an area where there is maximum wind, even though they will still be working only some 30% or 35% of the time. They will always be in the most prominent spots. We are a Government who look to the countryside and to rural areas for support, but we are not providing protection for those areas as far as wind turbines are concerned.
Some people refer to wind turbines as windmills, but they certainly are not. Three or four turbines would probably require nearly half an acre to an acre of concrete in the ground. I can assure hon. Members that a mast some 180 metres high would need an awful lot of concrete to keep it in the ground. Infrastructure, including roads, is also needed to allow access to the turbines, to service them. They are not the fluffy wind turbines and windmills that they are sometimes portrayed to be.
My hon. Friend is making a powerful case. On the visual impact of turbines, I do not want to get into a bragging war about who has the largest turbines, but those that he mentioned were probably no higher than 60 or 70 metres. Those that are likely to be built now in the Den Brook valley will be 120 metres high; that is almost the height of St Paul’s cathedral. Whether they are smaller turbines up on hill ridges, which are obviously visible, or turbines down in valleys, they are often of such a magnitude that they are visible for miles around.
My hon. Friend knows that Devon’s tourist industry is valued at about £1 billion a year. There will be huge, cumulative detrimental impact on that business if we continue to despoil our landscape in this way.
My hon. Friend talks about a mast that is 120 metres high; in real money that is 400 feet, which is a huge height. People must remember that it will be seen for miles. Turbines will be put in prominent positions to catch the wind in the first place and they go 200, 300 or 400 feet up in the air, so they can be seen. They cause huge detriment to the visual aspect of the countryside, to the people living there and, as my hon. Friend says, to the people coming to visit Devon, Cornwall and the west country. Believe it or not, people do not come to the west country to see wind turbines; they come to the countryside to see the great landscapes and, dare I say it, the lambs, sheep and cattle in the fields, along with our beautiful rivers. People do not come to see massive wind turbines that are being built in the countryside not because of the economics but because they are over-subsidised.
The Minister cannot be held responsible for the over-subsidy of wind turbines, which is not in his Department’s portfolio, but the Government should consider the over-subsidy more closely because I am certain that if we killed the economics of wind turbines, we would kill the applications, irrespective of planning. The Minister might not be able to answer that today, but it needs to be passed down the line.
(12 years, 4 months ago)
Commons ChamberIt is a great pleasure to speak in this pre-recess debate. I echo the words of my hon. Friend the Member for Brentford and Isleworth (Mary Macleod): we wish team GB the greatest success in the world. May I say to my hon. Friend the Member for Southend West (Mr Amess), who mentioned the “Guinness Book of Records”, that he should appear in it for the amount of stuff he can get into a five-minute speech about his constituency and events all across the world? He most certainly should be given such an award.
To be serious, on 7 July, 4½ inches of rain fell in one day on part of my constituency—Axminster, Seaton and Uplyme. There was a great deal of flooding in Axminster, particularly in Willhayes park, where many bungalows were flooded. Several elderly residents were confined to their beds and literally had to be rescued while the water was rising in those bungalows. I have toured the area this last week with the mayor of Axminster, Councillor Andrew Moulding, who has set up a local fund to help residents. It is great to see how the local community has pulled together in Axminster; I was amazed at how stoic the residents whom I went to see were, considering that their houses had been flooded. Anyone who has been into houses that have been flooded will be aware of the smell and contamination that people have to go through.
My hon. Friend is touching on an important point about the flooding that has affected many of us in the south-west. Will he join me in congratulating the Environment Agency on its sterling work, particularly in keeping residents fully informed of what was happening, including Members of Parliament?
My hon. Friend must be a mind reader, because I was just about to mention the fact that the Environment Agency has been so good, especially in warning people and getting the warnings through early so that people could take action, where possible, to secure their properties with sandbags. A large flood happened in Axminster where there was a blockage across a railway under a large culvert. The water backed up and there was immediately a huge amount of flooding. In the long run, we need not only to get good flood warnings in place, but to make sure that the culverts are clear and the rivers properly dredged so that we can get rid of the water when it comes.
I accept that when 4½ inches of rainfall comes down in less than 24 hours it is very difficult to handle, but we have to realise that the drainage channels and those rivers are all there for a purpose. That purpose is to drain. Yes, they are very pretty when the water level is kept high and they are allowed to silt up. Indeed, it all looks lovely until the rain starts to come down and we cannot drain the water away fast enough. I hope that Ministers and the Environment Agency will think seriously about that.
We also experienced floods in Uplyme. Down by the village hall, culverts were blocked and, again, there was a great deal of flooding. Fewer properties were involved, but one was badly flooded when a stream came down from the hill. Again the rocks came out and blocked the pipe, and water cascaded through the building. As I have said, it is not possible to solve all the problems, but I think that we need proper drainage channels with proper grilles.
Because I do not possess the ability of my hon. Friend the Member for Southend West to raise numerous matters during a short speech and am capable of raising only two or three, I shall now confine myself to raising the serious issue of the price of milk and the problems faced by dairy farmers in my constituency. The constituency contains a great deal of grassland, much of which is dairy farming land in the Blackdown hills and on the edge of Exmoor. The dairy farmers are not receiving the cost of production, and we need to do something about it, because they are experiencing a real problem. When 2,500 dairy farmers from all over the country come to a meeting in London—at Methodist central hall—the strength of feeling is clear. We cannot stand by while supermarkets drive the price of milk down by using it as a loss leader, as a result of which processors and farmers are squeezed.
Members have asked what future young dairy farmers have. I think that they have a good future, but we must ensure that there are more co-operatives. Farmers must come together if they are to have more power in the marketplace. We must also think about future markets. The Minister of State, Department for Environment, Food and Rural Affairs, my right hon. Friend the Member for South East Cambridgeshire (Mr Paice), has told us that when he went to China he saw many milk products from France, Germany and the Netherlands, but none from Britain. I think that when we have an expanding market in China, it is essential for us to send our milk and milk products over there.
If we do not export enough dairy products and create a demand throughout the country, and if too much liquid milk is flooding the market, it is very difficult to keep the price up for farmers. Farmers in my constituency need a future. They spend a great deal of money themselves throughout the community, and they need to be supported. I hope that the Minister will do something about that, and will establish contracts so that farmers can make a decent living.
(13 years, 1 month ago)
Commons Chamber3. What recent discussions she has had with her ministerial colleagues and others on job creation in the private sector in Wales.
4. What recent discussions she has had with her ministerial colleagues and others on job creation in the private sector in Wales.
I have regular discussions with ministerial colleagues and other interested parties on ways in which we can stimulate job creation in the private sector in Wales. We must create an environment in which the private sector can grow and prosper in order for businesses to create much-needed jobs in Wales, and we will continue to work with the Welsh Government to achieve that aim.
(14 years, 2 months ago)
Commons ChamberLike many other Members who have spoken this evening, I welcome the Bill. It is timely—it has certainly not come before time—and I congratulate the Financial Secretary on introducing it so early in the life of this Government.
I too signed the EMAG pledge to stand up for fair and appropriate compensation, and like many other Members, I too have had many individuals in my constituency come to me in a terrible state because of what has happened to their pensions and their future as a consequence of maladministration and regulatory failure. For each one of those individuals that is a tragedy, but when we consider that 1 million policyholders and 1.5 million policies are involved, we see that it is not a tragedy; it is a national catastrophe, because it hits saving. We have now come out of one of the worst recessions in modern times—one of the worst since the second world war—and one of the things we must now do as a nation is get back into the habit of saving. Nothing in the previous Government’s approach to the Equitable Life saga has done anything to encourage that habit.
I have sat through most of today’s debate and I have been disappointed and slightly irritated by the synthetic anger from Labour Members—I felt that particularly at the beginning of the debate. They have suggested that in some way we have been responsible for the delays and for the fact that these payouts are not happening more quickly, but we know of the previous Government’s attitude and approach to Penrose, of how they obfuscated on the second parliamentary ombudsman’s report and of the, in my opinion, cynical way in which they set up Chadwick to report after the general election so that it would be us who would be standing in this Chamber addressing these issues as we are today.
I thank my hon. Friend for the powerful points that he is making. May I reinforce the fact that this is about the message we send to all those who are saving for their old age in order to give themselves a good quality of life? If we do not sort out the Equitable Life situation, it will send exactly the wrong message to hard-working people. I congratulate the coalition Government on having the political will to sort it out, given that the previous Labour Government had no such will. In fact, they used taxpayers’ money to fight policyholders. I urge our Front-Bench team to get this sorted.
I thank my hon. Friend for making a very important point, with which I entirely agree. I welcome the coalition’s commitments on several important matters, and they must not be overlooked in all the discussion about what the final payout is. The first is that there will be no means-testing. As we know, means-testing, when applied appropriately, can often provide resources to those who are most needy, but in this instance it will do nothing other than to punish those who have acted responsibly and have saved, putting something away for their future.
I too am very pleased that the Financial Secretary has stated that the estates of the 30,000 people who have died since this saga began will benefit through this scheme. I also welcome the transparency that has been proposed and the independent commission, which is so important in terms of designing and administering the scheme. I am happy that it will report so early in 2011, in time to make payments for the middle of next year. I am also particularly pleased that Brian Pomeroy has been appointed to that independent commission and that that was acceptable to EMAG.
I do not believe that interim payments should be made, because I accept what the Financial Secretary has said—I think he talked about this in his statement to this House on 22 July—about how that would overly complicate matters. What hon. Members must now concentrate on is making sure that we hit the end date—a final point at which justice is done in this matter.
Many hon. Members have also rightly recognised the complexity of the task facing the independent commission in deciding on the payments and administering them. We are talking about 30 million pension transactions over the period that we are considering. I urge the Financial Secretary to ensure that he does everything possible to ensure that no delay now occurs as a result of that task.
As we know, the Bill is enabling legislation—it is not designed to determine the final payout. That is part of the comprehensive spending review, and the report back to this House will be made on 20 October. EMAG suggests that £5 billion should be the amount. Chadwick’s remit was distinctly different from that of the parliamentary ombudsman, and because of the assumptions that he made about the proportion of people who were likely to have invested in Equitable Life, irrespective of the maladministration—in other words, if they had known of it at the time—he is perhaps looking at 10% of that figure.
We should not dismiss the Chadwick report’s methodology and much of the hard work that was done, which took more than a year to put together in that report. However, I agree with this statement made by the Financial Secretary:
“I am aware that some of his findings will be contentious”.—[Official Report, 22 July 2010; Vol. 514, c. 577.]
Furthermore, I contend that they will be more than that if they result in 10% payouts; they will be wholly unacceptable.
I have been impressed by one aspect of today’s debate, which is that members of EMAG have sat patiently watching our debate; I recognise one of the gentlemen in the Public Gallery at the moment. We owe it to them—we owe it to the individual policyholders—to do the right thing. We have a moral duty to them and we have a national imperative in terms of re-establishing the trust between government and people, which hangs on the decision that the Financial Secretary will take later this year.