Tax Credits (Working Families)

Simon Hoare Excerpts

Tuesday 7th July 2015 Commons Chamber

[Mr Roger Godsiff (Birmingham, Hall Green) (Lab)]

First, may I congratulate the hon. Member for Ayr, Carrick and Cumnock (Corri Wilson) on her excellent maiden speech, which I am sure will be the first of many?

A lot of my constituents are low-paid workers. Many are paid the minimum wage and some receive even less. They work very long hours and some have two or three jobs to bring in enough money to feed their families and pay the bills. Even then, some of them cannot afford to put food on the table seven days a week and have to endure the humiliation of going to food banks with their families.

These low-paid workers are not shirkers or skivers, lazy or feckless; nor, as a matter of interest, are they the people who caused the financial and banking crisis in 2008. If the curtains on their houses are drawn at 7 or 8 in the morning, it is not because they are skiving or being lazy, but because they only got home from work after midnight. These are the people in my constituency who rely on working tax credits to top up their poverty pay, and it is they who suffer if tax credit support is reduced or abolished.

I agree with the Prime Minister that employers should pay the living wage, but many of them do not and will not unless they are forced to do so. If the Government are serious and want to save money on tax credits, they must turn the statutory minimum wage into a statutory living wage. Indeed, the Prime Minister should understand that argument, because Steve Hilton, who was his adviser until recently, has advocated exactly that. I hope very much indeed that that is what the Government will do. I suspect that they will offer incentives to employers to pay the living wage, but by doing so they would just be subsidising employers—they would not save money.

In a different world we would have unions that were strong enough to bid up their members’ wages, but they are not strong enough. Conservative Members smile and laugh whenever unions are mentioned. Unions have a traditional role of negotiating better terms and conditions for their members. The Conservative party hates trade unions. Indeed, it has made it absolutely plain that it will bring in even more draconian restrictions on them, so trade unions will not be able to do their traditional job of bidding up wages. Therefore, it is down to the Government—if they are serious—to turn the minimum wage into a living wage. Is that what Treasury Ministers intend to do?

[Simon Hoare (North Dorset) (Con)]

Will the hon. Gentleman give way?

[Mr Godsiff]

No, I will not take interventions.

The Government could set an example by insisting that the contractors they use pay the living wage, not the minimum wage. That would be positive. Treasury Ministers could set an even better example. When Her Majesty’s Revenue and Customs, which is the Treasury’s responsibility, put out its cleaning contract to ISS and was offered a contract price based on either the minimum wage or the living wage, why did it choose the minimum wage? It could have set an example by choosing the living wage, but it chose the lowest common denominator. Low pay is a national scandal. It is not the fault of hard-working, low-paid families in my constituency or anywhere else in the country. It is the Government’s responsibility to address this issue.

Greece

Simon Hoare Excerpts

Monday 29th June 2015 Commons Chamber

[Mr Osborne]

The decision to which the hon. Gentleman refers was taken yesterday by the European Central Bank, and it was a decision not to expand the amount of liquidity assistance provided; it did not cancel the existing liquidity assistance. We are not in the eurozone, of course, so we are not part of the European Central Bank, but there have been close discussions and the European Central Bank is keeping the Bank of England directly informed about the decisions it is making.

[Simon Hoare (North Dorset) (Con)]

My right hon. Friend will remember the back story to the Don Pacifico incident. What advice will he, the Foreign Secretary and the Foreign Office be providing to British citizens residing in Greece or visiting Greece during the holiday season about their physical safety and security, because, whatever the result of the referendum, there could be periods of intense unrest across the country?

[Mr Osborne]

I will not attempt to say the Latin phrase that Palmerston used at the time of the Don Pacifico affair, but I will say that we of course stand ready to help British holidaymakers. The best thing that they can do is ensure that they are well prepared, and the best thing that we can do is ensure that the advice they need is provided. Greece is clearly one of the most popular holiday destinations; at the moment 150,000 British citizens go there every week in July. That is why we have changed the travel advice and said clearly that people should take with them the euros they need for their holiday, or at least not assume that getting cash out of an ATM will be straightforward. They need to think through those issues, which is why we are providing that advice.

European Union (Finance) Bill

Simon Hoare Excerpts

Tuesday 23rd June 2015 Commons Chamber

[Mr Gauke]

I would certainly make it very clear that there was a considerable achievement in the 2013 negotiations that were implemented in 2014. For example, there were calls for changes to the financing system and to introduce new types of member state contributions, but the UK resisted that successfully. There were calls to introduce new EU-wide taxes, including a financial transactions tax, and the UK resisted that successfully. Finally, there were calls to reform the rebate and the Government protected that. That is a considerable achievement.

On the subject of the regional distribution of common agricultural policy receipts, it is only fair to point out that payments per hectare are only part of the story. Although Scotland receives the lowest payments per hectare, Scottish farmers also receive one of the highest payments per farm in the European Union. On average, Scottish farmers receive just under £26,000 compared with England’s £17,000, Wales’s £16,000 and Northern Ireland’s £7,000. I hope that that provides some clarity for the right hon. Gentleman.

[Simon Hoare (North Dorset) (Con)]

I note the irony that the House of Commons Library published its briefing paper on the Bill on the bicentenary of the battle of Waterloo. It notes, with its characteristic understatement, that our

“rebate is not popular with other Member States or the Commission”.

May I invite my hon. Friend to make a firm commitment to the retention of our rebate? Will he continue to argue for it and ensure that it is not part of any of the renegotiations on our ongoing membership in the Community?

[Mr Gauke]

Absolutely. I am keen to make that commitment and I am grateful to my hon. Friend for making that point. Those of us who participated in the equivalent debates after the previous multi-annual financial framework was agreed and on the Act that performed the task that this Bill will now perform will recall that we spent some considerable time focusing on the fact that a large part of the rebate had been surrendered by the previous Government for little or nothing, merely a promise of reform of the common agricultural policy that had not been delivered.

--- Later in debate ---

[Mr Gauke]

My hon. Friend makes a good point. He anticipates comments that I will make later relating to how we can ensure that the money is not just controlled and reduced, but better spent. There is a criticism, which I suspect is shared by Members from all parts of the House, that the money that the European Union spends in its various ways is not used as efficiently and is not as focused on improving our competitiveness as it might be. There are encouraging signs that there is a greater focus on that. I will return to that shortly.

I was running through the various technical changes in the own resources decision. I have touched on the changes to the retention rates. May I also touch on the changes in relation to GNI-based contributions?

[Simon Hoare]

rose—

[Mr Gauke]

Before I do so, I will give way to my hon. Friend.

[Simon Hoare]

I am grateful to my hon. Friend for giving way a second time; he is being very generous. My constituents in North Dorset and people across the south-west want to have confidence that Her Majesty’s Government will in no way acquiesce to a change in our rebate as part of any negotiations. We all understand that the UK’s agreement is contingent on any changes to the rebate. I invite the Minister to make the commitment that the rebate is not part of any renegotiation, that it is absolutely off limits and that this Government will always continue to defend our rebate.

[Mr Gauke]

I give the assurance that the Government will always defend our rebate. Perhaps it might be helpful to the Committee if I make the point that I made on Second Reading about the scale and significance of the partial surrender of our rebate by the Labour Government. According to the European Commission, the disapplication of the UK rebate cost the UK about €9 billion over the seven-year period of the previous multi-annual financial framework. Thereafter, with the abatement disapplication fully phased in, the cost to the UK is about £2 billion a year. That is a significant sum, particularly given the fiscal circumstances that we continue to face.

Frankly, the question of what was achieved in return for the surrender of that partial rebate might be asked. Perhaps we will hear an answer to that later this afternoon, but I have not heard a convincing answer yet.

Productivity

Simon Hoare Excerpts

Wednesday 17th June 2015 Commons Chamber

[Chris Leslie]

I am sure the Chancellor is very much focused on being the Prime Minister in waiting. He is, of course, the eminent First Secretary of State, and I hope his junior Ministers occasionally manage to peek round his door and get the odd minute of his very busy time on these matters.

The mark of a Chancellor focused on our economic challenges would have been to engage a bit more thoughtfully in considering how best we can tackle Britain’s productivity problems, but he could not bring himself to mention productivity once during his 8,000-word Budget speech three months ago.

[Simon Hoare (North Dorset) (Con)]

The hon. Gentleman is being a little churlish. I am sure that we can all be accused of all sorts of things, but over the past five and a half years my right hon. Friend the Chancellor has focused with Exocet precision on making the economy grow, increasing jobs and getting us on the move again. Such churlishness belies the hon. Gentleman.

[Chris Leslie]

I am sorry that the hon. Gentleman finds my remarks a little churlish. When did he last speak to the Chancellor about productivity?

--- Later in debate ---

[Simon Hoare]

Clearly, the hon. Gentleman is not a barrister. One should never ask a question to which one does not know the answer: last Thursday in the Lobby.

[Chris Leslie]

I am delighted to hear it. I only wish that the Chancellor would come and talk to the rest of us about productivity.

--- Later in debate ---

[Marcus Fysh (Yeovil) (Con)]

It is a pleasure to follow such excellent maiden speeches, not least that of my hon. Friend the Member for Hertsmere (Oliver Dowden), who gave us a wonderful tour of the massage parlours of his constituency.

The amount of value we create in our work is key to what we can expect to earn over the long term. We heard earlier this afternoon from the Secretary of State for Education how this Government are focused on getting great teaching and skills to our young people to give them the best chances in life. I support that and am keen to ensure that recent improvements on that front in my Yeovil constituency are consolidated and taken further. I want more funding for school places in my county of Somerset, too, so that we can build a better future for our children, developing their talents to their full potential.

I also support the plan for productivity mentioned earlier by the Chief Secretary to the Treasury. We have a plan for productivity, not just platitudes as espoused by the Opposition. Differences in productivity levels between G7 nations have been relatively static over time, reflecting widely different structural characteristics. There are significant measurement problems in the statistics—for example, in picking up the intangible benefits of changing technology. Productivity growth has dipped in America, too, in recent years, so it is not just a British disease, as some are trying to claim, although we should look to America as an example of an economy with higher productivity growth on average than we have managed over time.

Recessions are bad for productivity growth, as capital for investment becomes scarce, so confidence in further recovery is definitely a factor for us to encourage. We also must be careful not to restrict our service businesses while we attempt, rightly, to encourage manufacturing. Services are a huge competitive advantage that we have as a nation, and we need to get them firing on all cylinders and respect their contribution.

It is fantastic news that 2 million net new jobs have been taken up since 2010. In the past year alone, the unemployment count in my constituency has come down by 24%. That is an outstanding achievement and it shows that my constituents are finding positive answers to their questions on employment, even if there is more to do and we need always to prepare for an uncertain future. We must not be complacent and we must certainly do what we can to enable employers to make the jobs they offer more rewarding, improve the number and quality of apprenticeships, and support businesses with the right policy settings.

Of course, we can do better as a nation, and that is important to the national finances, as well as to personal pay packets. People in the south-west want to cut red tape, extend investment allowances, keep taxes low, invest in infrastructure such as the dualling of the A303 and A358, connect people with broadband, including those in rural areas, and reopen rail connections in Yeovil and Chard, to get people and their work and ideas to where they need to be.

[Simon Hoare]

My hon. Friend is absolutely right to mention broadband, an issue that affects many constituencies. Does he agree that an increase in mobile telephone signal is also very important in rural areas, to help small and medium-sized businesses?

[Marcus Fysh]

That is a very good point, and we are pursuing it in the south-west.

People are not just productivity statistics from a survey in a report. What suits one person will not necessarily suit another, and it is wrong to say that lower-paid work is necessarily bad or should not be respected. It is a good thing that all types of jobs are being created. Things are getting better in our country and we must resist talking down the great achievements and sacrifices our people have made over the testing period we are coming out of. We can all play our part to build a better future, and if we do the right thing the statistics will follow.

The Economy

Simon Hoare Excerpts

Thursday 4th June 2015 Commons Chamber

[Simon Hoare (North Dorset) (Con)]

It is a pleasure to be called to speak in this final day of the debate on the Gracious Speech, but that pleasure is increased by the fact that I represent the constituency of North Dorset, which is probably—I will not give way to anyone on this point—the most beautiful constituency, certainly in England. At its heart is Blackmore Vale, made famous in the writings of Thomas Hardy. The village of Marnhull, where my children attend school, is very much the centre of the story of “Tess of the d’Urbervilles”. Who will ever forget the great scene in which Tess sees Angel Clare country dancing on the village green? I note that there is no all-party parliamentary group for country dancing. The House will be pleased to know that I am not proposing that we set one up.

The constituency of North Dorset has been represented by some colourful characters over the years, including a polar explorer, a former chairman of Crufts—the dog show, I presume—and a Loch Ness researcher. I do not know whether he ever found the Loch Ness monster, but I say to Scottish National party Members that that is not an invitation to field a candidate at the next general election.

This is an important debate, and one in which my predecessor, Robert Walter, took great interest. Robert served North Dorset for 18 years, filling a number of roles in this House. Probably more importantly, his commitment to democracy and his desire to see the eastern bloc and Europe flourish took him into the realms of the Inter-Parliamentary Union, where he did a huge amount of very good work over the years. We wish him well in his next turn of career.

That said, Robert never neglected his constituency. I lost track of the number of people who told me on the doorstep while I was canvassing for the election that they would always vote Conservative because of what Mr Walter did 10 or 15 years ago. Those are big shoes to fill, and it is a legacy I hope to continue. We wish him and his wife Feride well. While on the subject of Feride, I note that Robert, a man who liked to do things for the first time, was the first Member of this House to have a Muslim wedding service here in the Palace of Westminster.

The economy of North Dorset is growing and our employment rates are going up, but there is still fragility there. A number of hon. Friends have already referred to some of the challenges that hold back what in my constituency are not small to medium-sized businesses, but micro to small businesses. We do not have particularly good coverage for mobile phone signals, or indeed for broadband, as referenced by my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake). Those are things that I campaigned on during the general election, and on which I will be pressing Ministers in the Department for Culture, Media and Sport and other Departments in order to deliver those opportunities for local businesses to grow.

The constituency wants to do well and to see investment, and I am going to be a champion for that. Like many other quarters of the country, we need investment in our road infrastructure. I refer, in particular, to the A350 and the C13. When I was selected as the Conservative candidate, a lady asked me whether I would be joining the 1933 group. I replied, “I think we all join the 1922 committee,” assuming that she was just a little confused about the antiquities of the Conservative parliamentary party. She was, in fact, referring to the local action group set up in 1933 to campaign for the Melbury Abbas bypass. It may well be that in my time in this House we are able to deliver it.

The Gracious Speech put at the heart of the Government’s programme a commitment to growth and to entrepreneurialism, and that is something I want to champion during the years I am here. The people of Dorset are welcoming and they want the constituency to do well. I invite Members of the House to visit Hardy country. Tourism and agriculture in the area are growing. Indeed, the agricultural economy is probably the largest in the constituency. I will be looking to Front-Bench colleagues in the Department for Environment, Food and Rural Affairs to ensure that we are doing all we can to combat such challenges as bovine TB and ensure stability in the dairy sector. There is a lot to do, and I have the honour to play a part in helping North Dorset thrive. I look forward to it.