Oral Answers to Questions

Nick Smith Excerpts

Tuesday 24th April 2012 Commons Chamber

[Mr Osborne]

I am glad the hon. Gentleman reminds us that the previous Government bailed out the banks with no conditions attached, and we are having to pick up the mess. We want to help small business lending by using the Government’s balance sheet and the low interest rates we have earned with a credible deficit plan. We intend to increase competition in the high street: we sent Northern Rock back into the private sector with Virgin Money, a decision that was welcomed in the north-east of England, but opposed by the shadow Chancellor. We are taking the steps necessary, but yes, we are dealing with one enormous mess left to us by Labour.

[Nick Smith (Blaenau Gwent) (Lab)]

5. What assessment he has made of the effect on pensioners of the proposed changes to age-related income tax allowances.

[The Exchequer Secretary to the Treasury (Mr David Gauke)]

No one will pay more tax in 2013-14 than they do today as a result of the changes. There are no cash losers. The Government remain absolutely committed to supporting pensioners. We have introduced a triple guarantee for the basic state pension, ensuring that it will increase each and every year by the highest of earnings, prices or 2.5%. We have also protected other benefits that make a real difference to the lives of millions of pensioners.

[Nick Smith]

What does the Minister have to say to those who are turning 65 in just under a year’s time? They are set to be more than £25 a month worse off than they thought they would be, but they have no time to plan for that change.

[Mr Gauke]

Those who turn 65 next year will benefit from the biggest increase in the personal allowance that we have ever seen.

Finance (No. 4) Bill

Nick Smith Excerpts

Thursday 19th April 2012 Commons Chamber

[Nick Smith (Blaenau Gwent) (Lab)]

I understand that age-related benefits were an idea put forward by Winston Churchill. Does my hon. Friend think that George Osborne knows better than Winston Churchill?

[Rachel Reeves]

Government Members would do well to look to Churchill rather than to their current leaders when deciding how to vote today.

Amendment of the Law

Nick Smith Excerpts

Monday 26th March 2012 Commons Chamber

[Ian Mearns (Gateshead) (Lab)]

It is clear from today’s contributions that the Budget impacts in very different ways in different parts of the country. Members in the south, who mainly represent the Conservative party and the Liberal Democrats, tell us about the benefits of the Budget, but those benefits are few and far between in my neck of the woods.

On behalf of my constituents, I congratulate the Leader of the Opposition, who last week hit the nail on the head, when, in response to the Chancellor’s Budget statement, he said, “Same old Tories”. He was absolutely right, and that point has been magnified by what we have seen this weekend. It is absolutely the same old Tories. But now there is an added dimension. It is the same old Tories but aided and abetted by their accomplices, their partners in crime, the Liberal Democrats.

In the Chancellor’s millionaires’ Budget, it is clear who will suffer the most—the people of the north, the poorest, and those looking for work. With few jobs available, it will be pensioners, families, the hard-working, the squeezed middle and the working poor who will suffer the most. It was notable that the Chancellor consigned to the dustbin of history the phrase, “We’re all in this together.” He is not saying it any more. Owing to the imbalance in the Budget, it is clear that most of us are in this together, but that the few at the top of society will be exempt from it all.

The regional disparity is all too plain to see. In the three south-east regions— London, the south-east and the eastern region—nearly 195,000 people will benefit from the cut in the top rate of tax. In the north-east, that figure is 5,000, and in Wales, it is 4,000. That is a massive disparity.

The people of the north-east will be forgiven for thinking that the Government have developed exactly the same approach as William the Conqueror—a 21st-century scorched-earth, slash-and-burn policy for the north. In just two years, they have abolished our Minister for the north, our local authorities have taken massively disproportionate cuts and the regional development agency has been abolished. My own authority of Gateshead has lost 1,500 jobs, and 67,000 public sector jobs have gone in my region while only 5,000 new jobs have come in the private sector.

We are clearly not in this together. There is no plan, no investment, not a sausage—not even a Greggs sausage roll. The Government’s plan to add VAT to warmed-up pasties could jeopardise Greggs breakfast club scheme for 65 primary schools in my region, four of which are in my constituency—not to mention knocking £35 million off Greggs’ share value last week. It is obvious that we are not all in this together.

Let us consider regional pay. We do not have a credible policy for growth, and now the Government are offering us regional pay.

[Nick Smith (Blaenau Gwent) (Lab)]

Does my hon. Friend agree that it will be people such as police officers, nurses, and fire and other emergency staff who will be most affected by this attack on them in the form of the introduction of regional pay?

[Ian Mearns]

I could not agree more, and of course there will also be a depressing effect in the private sector. Last weekend, private sector bosses in the north-east came out clearly against regional pay.

If we are to look at regional pay, can we also look at regionalised utility bills for gas, electricity, telephone, water and vehicle fuel—and, while we are at it, council tax and grocery bills? If the Chancellor or the Prime Minister fancy paying £250,000—shall we say?—to have dinner with the chief executives of Asda, Morrisons, Tesco and Sainsbury’s, perhaps they could ask them to reduce the cost of grocery bills in the regions. Or they could ask the east coast main line to implement regional level funding for fares for people travelling up and down the country to get to work from far-flung fields. And why not go the whole hog and establish regional Parliaments and re-establish our RDA? Let us do things on a regional basis properly and fundamentally, but I really do not think that will happen. The people of the north-east will never forgive the coalition. In particular, they will never forgive the Liberal Democrats for their hand in it. Quite frankly, the Budget is shocking.

There is one last thing. As One North East, our RDA, winds up and prepares to close its doors for the very last time, may I formally, in the House, record the thanks of the people of the north-east for the work of our RDA and, in particular, Alan Clark, the chief executive, Paul Callaghan, the chairman, and his predecessor, Margaret Fay? They did a great job for the north-east.

Amendment of the Law

Nick Smith Excerpts

Thursday 22nd March 2012 Commons Chamber

[Nick Smith (Blaenau Gwent) (Lab)]

In my maiden speech almost two years ago, I highlighted my constituency’s strengths: our beautiful land and strong sense of community; a pride in our radical past of Chartism and of Nye Bevan, who established the NHS; and its hard-working people, who started our industrial revolution. I highlighted also its challenges and, particularly, high unemployment and a creaking infrastructure that is badly in need of significant investment. Sadly, unemployment is even higher now and, in particular, almost 20% of our 18 to 24-year-olds are on the dole—a shocking figure for young people.

In Blaenau Gwent there are 18 decent and talented people chasing every advertised vacancy, so job creation, transport infrastructure and growth are still top of our agenda. Sadly, the Budget showed that they are not the Government’s top priorities, and we see no coherent strategy for jobs and growth. The UK Government must do more. We need investment in jobs and growth, and we need it now.

The fact is that we are losing jobs faster than we are creating them. Everybody I speak to about regeneration in Blaenau Gwent, in the public and private sectors, stresses the importance of good transport links. Being in the east of Wales, we have good access to the rest of the UK, but we need adequate infrastructure—both road and rail—to deliver the benefits of that access, and that is why I am campaigning for both.

Work to improve the Heads of the Valleys road is under way, and, although the work is disruptive in the short term, when it is complete we will see the benefits. Thankfully it started before the Government proposed linking road improvements to new tolls. Welsh business would also be given a real boost if the Severn crossing’s toll was axed.

Rail electrification to Cardiff is going ahead, and that is good. The Ebbw Vale to Cardiff line was resurrected under Labour, and it is now so successful that carriages are jam-packed and locals call it the “Bombay Express”, but it needs a more frequent service and a line upgrade. In the Budget the Government state that they are working with the Welsh Government on the electrification of the valley lines, with final proposals due this summer. The Ebbw Vale to Cardiff line must be included to give a boost to the place that, because of our high unemployment and related deprivation, needs it so much.

The Welsh Business Minister, Edwina Hart, has committed £2 million to the development of a world-class motor racing circuit in Blaenau Gwent, and that could lead to a £200 million investment and create 1,000 jobs —a real game changer for our area. I had hoped that the Chancellor would support this opportunity, hailed by some as the UK version of the famous German Nürburgring track, but from his statement yesterday it appears that Deeside in north Wales will be the only Welsh enterprise zone to benefit from enhanced capital allowances. Will the Minister please clear that up?

Such tax treatments are focused on plant and equipment costs, not on the infrastructure itself, but capital allowances need to attract individual as well as corporate investors. That would help kick-start those exciting automotive plans for Blaenau Gwent, and the Government should think much more creatively about enhanced capital allowances for business growth.

In the Welsh valleys we punch above our weight in terms of the number of brave men and women recruited to our armed services, so I welcome the measures in the Budget which improve military accommodation and help with council tax rebates and with forces families’ welfare. They are an important part of the military covenant and are supported by both sides of the House.

I should also comment on the Budget proposals affecting fuel prices. A stonemason in my constituency travels from job to job in his 4x4, but with the cost of fuel he thinks that he would be better off out of work, and that cannot be right. Many in Wales will also be fearful of the proposals for regional public sector pay, which would hit women hard in particular, and teachers and nurses especially.

Blaenau Gwent deserves more than this damp squib of a Budget. In the future can we see real Budget leadership on growth and improved transport infrastructure, and on support for business development and public health? Then Blaenau Gwent and Wales will be able to play their part in boosting our economy and make a further positive contribution to our UK budget.

Oral Answers to Questions

Nick Smith Excerpts

Tuesday 6th March 2012 Commons Chamber

[Mr Osborne]

I am afraid that my hon. Friend will have to wait for the Budget to see what we propose to do across the board, but last week we demonstrated that we are prepared to take decisive and swift action where we find unacceptable tax avoidance—by a bank in that case, which we felt was incompatible with the code of practice that we asked the banks to sign and which they have signed. I hope that he and his constituents take it as a signal of our seriousness about tackling tax avoidance and, indeed, tax evasion.

[Nick Smith (Blaenau Gwent) (Lab)]

Much work has been done to secure a private sector-led infrastructure project in Blaenau Gwent. The developers say that it could create sustainable jobs for over 10,000 people. Given that the Chancellor has already announced 100% capital allowances in six English enterprise zones, when will he be able to offer similar assistance to the Welsh enterprise zones?

[The Chief Secretary to the Treasury (Danny Alexander)]

We are in discussions with the Welsh Assembly Government about their proposals for enterprise zones in Wales, including the possibility of applying within them the capital allowances regime that the hon. Gentleman describes, and we will make an announcement shortly.

Tax Avoidance (Public Servants)

Nick Smith Excerpts

Thursday 2nd February 2012 Commons Chamber

[Danny Alexander]

I have made clear the answer to that question throughout my statement. I am responsible for signing off the salary level for appointments over £142,500, and I discharged that responsibility in this case.

[Nick Smith (Blaenau Gwent) (Lab)]

Yesterday’s Financial Times reported: “Treasury beset by exodus of top staff”. Officials have also reported that the Treasury’s staff turnover rate is now “higher than McDonald’s”. Can the Chief Secretary to the Treasury ensure that there will be sufficient firepower at the Treasury to thoroughly scrutinise tax avoidance across Government, and did the Minister for Universities and Science, the right hon. Member for Havant (Mr Willetts) agree to this arrangement?

[Danny Alexander]

It is precisely for the reason that the hon. Gentleman suggests that, in the spending review, we announced an additional £900 million for Her Majesty’s Revenue and Customs to enable it to focus attention specifically on tax avoidance and tax evasion. I very much hope that he welcomes that decision.

Fuel Prices

Nick Smith Excerpts

Tuesday 15th November 2011 Commons Chamber

[Graeme Morrice]

I certainly agree with my hon. Friend that the public are expecting more, and we are not going to see any action unless the Government do something about this imminently.

[Nick Smith (Blaenau Gwent) (Lab)]

Filling up a commercial van costs £15 more now than it did last year. In January, I asked the Prime Minister about help for hauliers who are struggling with their fuel bills and he told me that the Government were looking at a discount for haulage firms. So far there has been little action on that. Does my hon. Friend agree that it is vital to support our truckers at this time?

[Graeme Morrice]

I entirely agree with my hon. Friend. Immediate action needs to be taken to ensure that our hauliers, and our commercial and transport businesses, are supported in this regard.

--- Later in debate ---

[Andrew Griffiths]

I am sorry, but the hon. Lady’s argument would have more strength if her party had done something to cut fuel duty when it was in power.

In the few minutes that I have left, I will raise an issue of particular importance to my constituents.

[Nick Smith]

Will the hon. Gentleman give way?

--- Later in debate ---

[Rosie Cooper (West Lancashire) (Lab)]

More than 100,000 people have added their names to an e-petition, and they and many millions more want to know whether the Government are prepared to listen to them and take the necessary action to ease the burden on hard-working families and businesses and, indeed, on our struggling economy. Out of that desire for action, and to support people in my constituency, I added my name to the amendment tabled by my hon. Friend the Member for St Helens North (Mr Watts) that called on the Government to reverse their VAT increase and, in doing so,

“cut 3p off a litre of petrol”.

[Nick Smith]

Very shortly, the Chancellor will give his autumn statement, so does my hon. Friend agree that that is a terrific opportunity for the Government to signal a temporary cut in VAT that will both help drivers and boost our economy?

[Rosie Cooper]

I do indeed, because the general public are simply not interested in any more words, any more knockabout, or any more “he said, she said”. They have signed up in their thousands for action to reduce the cost of fuel and its impact on families and businesses. Study after study shows that transport is integral to an individual’s ability to access employment opportunities and to take part in social and cultural activities. For many people, access to transport is the difference between social exclusion and social inclusion. I could give examples from my West Lancashire constituency that illustrate that the cost of fuel has a significant impact on people, whether they live in urban or rural areas.

The sixties town of Skelmersdale was designed with the car as king. There is no railway station or pavement system to allow people to walk across town, and public transport services are limited. That means that residents rely on their car to get to work and to get around. In many cases, workers are forced to use taxis to travel to work, and if fuel costs increase, residents in those hard-pressed areas must decide whether travelling to work is financially viable.

Oral Answers to Questions

Nick Smith Excerpts

Tuesday 1st November 2011 Commons Chamber

[Mr Gauke]

We looked at auto-enrolment but one of the difficulties was the fact that it would have been years before we could have put it fully in place and we wanted to move quickly to have the scheme in operation. It is important that we highlight the scheme and make sure that publicity is available and that businesses are aware of it. The businesses that I have met that have taken up the scheme are very appreciative of it and it helps them in those difficult first few months.

[Nick Smith (Blaenau Gwent) (Lab)]

10. What assessment he has made of the level of economic growth in (a) the UK and (b) other EU members states in the last 12 months.

[The Financial Secretary to the Treasury (Mr Mark Hoban)]

Eurostat publishes GDP growth data on all EU member states. These data show the UK economy growing in the most recent three quarters. The IMF’s latest forecast shows the UK economy growing this year, and growing faster than the economies of France, Germany and Italy next year.

[Nick Smith]

The Times says today that the Government’s plans for growth are “piecemeal” and their implementation “patchy”. Given that long-term youth unemployment is up by 60%, do we not need a proper programme for jobs?

[Mr Hoban]

The hon. Gentleman will realise that the biggest increase in youth unemployment in recent years took place when his party was in government. This Government have put in place the long-term foundations to tackle unemployment and raise growth across the UK.

Eurozone Crisis

Nick Smith Excerpts

Thursday 27th October 2011 Commons Chamber

[Mr Osborne]

Yes, I think that I can agree with my hon. Friend.

[Nick Smith (Blaenau Gwent) (Lab)]

Can the Chancellor update us on the situation regarding Cypriot banks, with their many customers in the UK and their tie-in to the Greek economy?

[Mr Osborne]

We keep under close surveillance not only British banks but the branches of Cypriot banks and the subsidiaries of other banks operating here in the UK. So we are closely monitoring the Cypriot banks, as we do with the other eurozone banks in Britain.

Summer Adjournment

Nick Smith Excerpts

Tuesday 19th July 2011 Commons Chamber

[Nick Smith (Blaenau Gwent) (Lab)]

I am pleased to have the opportunity to speak on the critical issue of public health. This time I want to look at the importance of exercise to promote health and well-being. Like many people, I have been alarmed at the rising levels of obesity in the UK and its associated diseases. Treatment of chronic conditions now takes two thirds of the health budget.

The problem is complex. The chair of Public Health Wales, Sir Mansel Aylward, believes people have lost their sense of belonging—once so evident in the south Wales valleys when heavy industries, coal and steel thrived. So he has called for local communities to be made formidable again—a bold ambition.

The latest figures for Wales show that one in three children are overweight. The costs of obesity are huge. If you include the wider cost of days lost from work and out-of-work benefits, they nudge £8 billion. Given the complexity of the problem, we need a much stronger regulatory and policy toolbox. Only 25% of children are getting the recommended 60 to 90 minutes of daily exercise outside school. Nothing can be more fun, or better exercise, than taking a young child to the park. So it is important that we invest in play for young children, and veto charges for playground entry.

Encouraging youngsters to keep active can take patience, good humour and a tailored delivery. Teenage girls sometimes feel that sport at school is a “boy thing”, so I applaud the BBC for its recent coverage of the women’s football world cup. But if young women do prefer dance, martial arts or yoga, they should be timetabled and encouraged. Swimming is a great way to exercise for all ages, all sizes and both sexes. I therefore regret the coalition’s removal of free swimming for under-16s and over-60s—a Labour Olympic legacy initiative.

Buzz Bikes in Blaina, in my constituency, was founded by teenage boys hanging around on their bikes. They received money from the Prince’s Trust, which helped them to set up an outdoor cycling club, and now they run a small shop, and repair and hire out bikes too. Funding was given not to improve the boys’ health, but rather to keep them out of trouble, but it has been a great boost to their physical health and self-esteem.

Finally, I would like to comment on the need for the elderly to keep active. In my area up and down the country, bowling is a popular pastime enjoyed by all ages. It is a source of physical, social and mental activity. It makes for better neighbourhoods, and opportunities to play should be increased, not jeopardised. I understand that the Government’s new obesity strategy should be published soon, and I hope that it will be the subject of a full parliamentary debate. If people of all ages are to become and keep active it is critical that local infrastructure, and play and leisure facilities, be maintained, and that charges be kept low. Many people cannot afford a gym subscription to keep fit, and investing in projects with longer term dividends is always difficult. Nevertheless, if we do not do it the cost to the NHS could be overwhelming.