Points of Order

Pat McFadden Excerpts

Thursday 22nd July 2010 Commons Chamber

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

On a point of order, Mr Speaker. Yesterday at Prime Minister’s questions, the Deputy Prime Minister, when trying to justify the recent decision by the Government to refuse the proposed loan of £80 million to Sheffield Forgemasters said that the decision taken by the last Government had been made knowing the funds were not available. He said:

“Lord Mandelson was writing out cheques to companies like Forgemasters, which he knew would bounce”. —[Official Report, 21 July 2010; Vol. 514, c. 343.]

But I am in possession of a letter sent to me a few days ago by the permanent secretary at the Department for Business, Innovation and Skills commenting on the financial controls in place during the time that the decision to approve the loan was taken. That letter says that

“when a new project or policy is considered the Department provides thorough advice to Ministers, including on the following aspects: value for money, legal implications, delivery of policy objectives, stakeholder and media reaction and available sources of funding. When funding cannot be identified from within existing departmental budgets it is agreed with HM Treasury.

I confirm that the process above was in place while you were a Minister here”.

In other words, the permanent secretary, an official for whom I have the highest regard, is clear that it was not the case that the previous Secretary of State approved financial decisions for which funds were not available. The Deputy Prime Minister has already got his facts wrong on the directors’ shareholdings. We also have the news that a major Tory donor wrote to the Government specifically on this point and appealing for the loan not to be granted. Now the permanent secretary’s letter shows that the Deputy Prime Minister has got his facts wrong again, this time on the issue of financial approval of the loan itself.

I ask you, Mr Speaker, how can we ensure that when the Deputy Prime Minister next speaks at the Dispatch box, he does not simply spray around unfounded accusations but gets his facts right on this crucial issue?

[Mr Speaker]

The straightforward answer to that point of order is that—if memory serves me correctly—there will be an opportunity to question the Deputy Prime Minister on Tuesday next week. If hon. Members wish to put questions to the Deputy Prime Minister on the matter to which the right hon. Gentleman has just referred, they will have an opportunity—not least in topical questions—to do so.

So far as the wider comments the right hon. Gentleman made are concerned, I can only reiterate what I have already said about the correction of errors and underline the importance of Members using their own devices to pursue those matters. I cannot be drawn into the debate. The right hon. Gentleman has stated his position and I have indicated what opportunities there are for the pursuit of the matter.