Oral Answers to Questions

Pat McFadden Excerpts

Thursday 8th July 2010 Commons Chamber

[Mr Prisk]

Indeed we are, and our plans include the changes to corporation tax that mean that manufacturing industry is better off by £250 million, the reduction of the burden of red tape and the removal of many regulators, and the £150 million that has been set aside to fund up to 50,000 more apprentices. The Government’s stronger long-term approach contrasts with the pick ‘n’ mix tactics and the tinkering and meddling that we had from the last Labour Government.

I remind the House that manufacturing investment declined in 10 of the last 11 years. That is the record of the Labour Government, and Labour Members should be ashamed of it.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

I want to return to the issue of capital allowances. The Minister and the Secretary of State have said that they want to rebalance the economy, but the Budget proceeded with plans to cut £3.1 billion from capital allowances and the investment allowance by 2013. The IFS has said that

“cutting capital allowances is not a good way to raise money because they are an efficient way to promote investment”.

In addition, the Engineering Employers Federation has said that the cuts

“make the investment needed to rebalance the economy more expensive”.

Labour’s Budget in March doubled the investment allowance for manufacturers, but this Government have cut that by 75%. We are all saying that we want to rebalance the economy, so how can the Minister justify these cuts of £3 billion a year in our support for manufacturers?

[Mr Prisk]

As I told the hon. Member for Glasgow North East (Mr Bain) earlier, the net balance is that manufacturing will be £250 million better off. That is the point. The right hon. Gentleman refers to the annual investment allowances but, even after these reforms take effect, the vast majority of businesses—over 90%—will still have all their investment costs covered by the Association of International Accountants. The key point is that the record of the Labour party is one in which manufacturing investment declined in 10 years of 11. We are changing that environment by taking the long-term approach. Is the hon. Gentleman proud of his record of investment down and jobs cut? Is he proud of that?

--- Later in debate ---

[Vince Cable]

I do share my hon. Friend’s concerns. As she knows, the decision originated last June with the Payments Council, which is an independent body. The decision was based on the fact that there had been a dramatic fall in cheque use, from 11 million a day in 1990 to 3.5 million. However, the Government recognise that there are large numbers of individuals, small companies and charities for whom the cheque is an extremely important way of making transactions. The Payments Council is an independent body, but we are trying to ensure that it has alternatives in place, so that people are not greatly disadvantaged by the change.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

May I ask the Secretary of State about an important area for consumers and businesses—the future of mobile broadband internet? As he will know, it is growing exponentially, and is hugely important for consumers and businesses. Will the Government therefore put an end to the uncertainty on the issue that has been created since the election, and proceed with the statutory instrument on the planned future spectrum option, which can make the sector grow in the UK? That measure, which was put together by the Labour Government, would have ensured fair competition through caps on the amount of spectrum that could be bought by a single operator. There has been great uncertainty on the issue since the election. Do the Government accept that it would be wrong to have that option in place in a way that squeezed out competition, and will they therefore set out their plans?

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Vaizey)]

We are looking carefully at this issue, holding regular discussions with the mobile phone operators and involving other Departments and regulators. The right hon. Gentleman is quite right. Getting the issue sorted is an absolute priority for us, and we hope to make an announcement before the end of the summer recess.

--- Later in debate ---

[Mr Hayes]

I can see that I will be busy travelling the whole country. Of course I will—WorldSkills matters and celebrates success; there was cross-party agreement about that. I will support the event in his constituency and WorldSkills more generally.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

On a point of order, Mr Speaker.

[Mr Speaker]

Order. The answer to the right hon. Gentleman is that points of order follow statements. [Interruption.] Order. Somebody chuntered from a sedentary position that there was a point of order earlier. The hon. Member for Rhondda (Chris Bryant) is a considerable authority on these matters and knows perfectly well—it is helpful for me to explain this to the House—that one circumstance in which a point of order can come before a statement is when, in respect of a particular question, a Member is so dissatisfied with the answer that he or she signals an intention to raise the matter on the Adjournment. I explain that both for the benefit of the House and for those outside who are unaware of such matters.