Jobs and Growth
Debate between Sajid Javid and Lord Darling of Roulanish(13 years, 2 months ago)
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Mr Alistair Darling (Edinburgh South West) (Lab)
As the Chancellor has referred to my book—and no doubt others will do so, too—perhaps I should draw the House’s attention to my declaration in the Register of Members’ Financial Interests.
From listening to the Chancellor, it is easy to forget one important fact. When we left office in 2010, our economy was growing; 12 months later, our economy is not growing at all. Growth has stalled, probably for more than a year. Despite everything that the Chancellor and his colleagues said during the last election about its all being the fault of the last Labour Government and nothing to do with global problems or Europe, our economy was growing. Now, 16 months after that general election, while the Chancellor has been in charge and responsible for setting the economic direction, our economy has stopped growing. Even a few months ago people believed that we might see a slow but gradual climb out of recession into growth, but now, right across the world, people are seriously worried that we could be in for a prolonged period of stagnation—at tremendous cost to the country, as today’s unemployment figures show.
Mr Darling
According to Madam Deputy Speaker’s ruling, I have only eight minutes, which means I can give way twice to my benefit; after that, it counts against me. I will, however, give way to the hon. Member for Bromsgrove (Sajid Javid).
Sajid Javid
I thank the right hon. Gentleman for giving way. He said in his recent memoirs that Labour still needs to offer a “clear and viable alternative”. Does he believe that he has heard that today from the shadow Chancellor?
Loans to Ireland Bill
Debate between Sajid Javid and Lord Darling of Roulanish(13 years, 11 months ago)
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Sajid Javid
The shadow Chancellor made the rather incredible statement in his opening remarks that he believes that Ireland’s euro membership has absolutely nothing to do with the predicament in which it finds itself. Does the right hon. Gentleman agree?
Mr Darling
The circumstances in which Ireland finds itself are complex, but there is no doubt that one problem is that a common interest rate right across Europe is perhaps inappropriate for an economy that is rapidly investing in an asset bubble. However, I do not have the same phobia about the euro that many Conservative Members still have, 20 years on.
Capital Gains Tax (Rates)
Debate between Sajid Javid and Lord Darling of Roulanish(14 years, 5 months ago)
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Mr Darling
My hon. Friend’s point about Canada is an important one. Yes, Canada reduced its deficit quite dramatically. As a result of that country’s provincial set-up, a lot of the action was taken by the provincial governments rather than the national Government. It was taken, however, an the back of a growing US economy. Given the relative size of the Canadian economy compared with the US economy—it is much smaller than the Californian economy alone, for example—there is no doubt that the Canadians could do things on the back of their next-door neighbour’s rising prosperity. Our problem is that our next-door neighbours, the EU, are not in the same position at all—indeed, quite the reverse. Equally, when Sweden was going through a similar exercise, it was helped by the fact that the economy of much of Europe was growing at the time.
Sajid Javid (Bromsgrove) (Con)
Does the right hon. Gentleman agree that he should also consider the example of Spain, of which I am sure he is more than aware, when talking about our EU neighbours? Despite having a lower debt-to-GDP ratio than us and a lower budget deficit, it is on the verge of a sovereign debt crisis. Its banks have been frozen out of the borrowing markets for the past three weeks, and it has reportedly held emergency meetings with the International Monetary Fund, the EU and others to try to arrange a bail-out package. Does that not make what we had to do yesterday even more critical?
Mr Darling
There is another difference, of course. Official unemployment in Spain is more than 20%. The Spanish construction industry is in dire straits. A lot of Spain’s smaller banks, which are heavily tied to that industry, are finding things difficult. There is a world of difference between the Spanish economy and our own, just as there is a world of difference between the Greek economy and our own.
Just about every day in the run-up to the election, the hon. Gentleman’s party was anxious—desperate even—to compare our economy with the Greek economy. To his credit, the Secretary of State for Transport—he is not here today, but I made this point to him when we were debating on the television last night—said that Britain was nothing like Greece. The idea that we are in the same position as Greece or Spain is complete nonsense. Our economy is much larger and much stronger, and our ability to service our debt is much greater. The average maturity of our debt—as the hon. Gentleman knows, I assume—is 14 years, whereas in Greece the average maturity is three years and in continental Europe it is about five years.
Of course we have to get our borrowing down and ensure that we can get debt down as well. No one would disagree with that. The question for us is how do we do that in a way that maintains growth, so that we can ensure not only that we get growth in our economy and that we do not damage our future prospects, but that we do so in a way that is socially and politically fair? That is the difference, but to compare us with those smaller countries is, frankly, ludicrous, as many in the hon. Gentleman’s party realise.