Wednesday 18th December 2013

(11 years ago)

Commons Chamber
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Robert Syms Portrait Mr Robert Syms (Poole) (Con)
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Poole food bank does a valuable job, supported by a wide range of people, largely from the churches, but including people across the political spectrum. They are all dealing with what must be a very difficult personal crisis for many when they cannot put food on the table. As a parent, one cannot conceive what it must be like to worry about what can be provided for children in an evening meal. In some respects, food banks provide a perfect example of the third sector at work, doing what it can to plug a gap at a particularly difficult time.

When all this started, I was sitting on the other side of the Chamber, watching the Budgets and the economic management of the country. At that time I was told that boom and bust had been abolished, yet we had one of the biggest busts ever—nearly 7% of GDP. However we look at it, if GDP falls by as much as that, living standards will take a hit.

Let me make an important point. It could have been a lot worse if people in work had gone for high pay increases to compensate for high bills, but they did not; they priced themselves into jobs. It could have been worse if people had been irresponsible, but they have not been irresponsible. Given the scale of the bust, it is a miracle that only 7.4% of people in the country are unemployed. The figures in Germany and Holland are lower, but, among European countries, Britain is not doing too badly.

Guy Opperman Portrait Guy Opperman (Hexham) (Con)
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Does my hon. Friend agree that, while we should all support churches, charities and organisations such as the West Northumberland food bank in my constituency, we should praise the Salvation Army in particular, because it has been providing food assistance for generations?

Robert Syms Portrait Mr Syms
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That is a very good point.

We all know that many people in work, as well as those who are out of work, have experienced a big drop in their living standards, and we know that that is because of the economic crisis, but the good news is that there are still a great many people in work and we have a growing economy. It is inevitable that living standards will start to recover as incomes rise, the market recovers and we start to export more.

Alison McGovern Portrait Alison McGovern (Wirral South) (Lab)
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I am afraid that the hon. Gentleman’s description of the macro-economic picture is not as connected to the micro-economic picture as he may assume. According to volunteers at the food bank in my constituency, they have been told that the need for food banks has been caused by the move from benefits to work. People’s weekly benefits stop and their pay cheques come at the end of the month, which is too far away. I fear that the recovery will not reach all parts of the economy unless we make it do so. Can he tell us what we can do to ensure that that happens?

Robert Syms Portrait Mr Syms
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One of our purposes in introducing universal credit is to make the transition from unemployment to work much easier. The scheme is complicated—we all know that—but I think that it is a worthwhile venture, because anything making employment easier must be a good thing.

Andrew Selous Portrait Andrew Selous
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Will my hon. Friend give way?

Robert Syms Portrait Mr Syms
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I will not, because my time is limited. I have already taken two interventions.

I am sure that, as the economy recovers, living standards will recover as well, but there is a short-term problem and a long-term problem. The short-term problem is the need for us to recover from the recession, which, as we all know, will take several years. The long-term problem is that, while those in the western world who have benefited from globalisation—particularly people at the higher income scale working in, for instance, financial services—can secure large rewards, many people in ordinary jobs have not managed to increase their living standards. That is a feature of the United States economy and it may be a feature of ours, which is why the Government are interested in apprenticeships and are trying to make our education system far more robust and resilient.

Statistics issued by the OECD the other day demonstrated the importance of ensuring that people are proficient in English and maths and that we have a skilled work force, because that enables those people to generate income and higher living standards. I think that the Government have the right instincts and the right answers, but the fact is that it will take a long time to sort the problem out.

Steve Baker Portrait Steve Baker
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Given that the money supply was allowed to triple during the 13 years when Labour was in power, it should not surprise us if those nearest to the source of the new money got rich while everyone else went backwards.

Robert Syms Portrait Mr Syms
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There is an argument to be had about the impact of that. Certainly it helped people with assets rather than those without assets. Nevertheless, I think that progress is being made, and that this morning’s unemployment figures represent a good staging post.

We need to do much more to educate and skill our work force so that we can compete in the global race and improve everyone’s living standards. All the statistics show that some of the more equal societies in Scandinavia are happier societies. What any Government must do in this country is ensure that, as the economy recovers, all sections of the community can earn a living, and can enjoy rising living standards.