Oral Answers to Questions

John Bercow Excerpts

Wednesday 30th April 2014 Commons Chamber

[Mr Maude]

That is a very good question. It is difficult to be precise because when business is outsourced to the private sector, it is hard to know which of the jobs in a business that provides services to Government and to other organisations relate to Government business. It is therefore hard to know what the baseline is. A larger number of activities will be carried out outside the public sector, many of them through the spin-outs of public service mutuals, which are a way of delivering much greater job satisfaction—

[Mr Speaker]

Order. I am much obliged to the right hon. Gentleman. He is plodding on to the best of his ability, but I say to him politely that perhaps he could write to his hon. Friend and place a copy of the letter in the Library of the House.

[Mr Maude]

rose—

[Mr Speaker]

No, there is nothing further to add. We are extremely grateful.

[Michael Dugher (Barnsley East) (Lab)]

Earlier this year, the Prime Minister boasted in a speech in Davos that under his Government

“there is a chance for Britain to become the ‘Re-Shore Nation’.”

However, the chief executive of Steria has said that offshoring jobs is “on the agenda” for outsourced civil servants working for Shared Services Connected Ltd, in which the Government retain a 25% stake. Does the Minister share my concern that up to 1,000 jobs might be offshored? Will the Government use their stake in the joint venture to argue that those jobs should be kept in the UK?

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[Mr Maude]

I think the hon. Gentleman may be a little confused. There is no correlation between jobs lost and jobs replaced. We need to have the skills in the civil service to do what needs to be done to serve Britain today so that we can win in a very competitive world. That means that some jobs become redundant, but some new capabilities are needed. No Government or organisation I have ever come across think that they sit in a steady state and never recruit new people. [Interruption.]

[Mr Speaker]

Order. I can scarcely hear the mellifluous tones of the Minister. There are far too many noisy private conversations taking place in the Chamber. I am sure that both the House and the nation will wish to hear Mr Philip Davies.

[Philip Davies (Shipley) (Con)]

T3. In 2011-12, the TaxPayers Alliance found that trade unions received a subsidy from taxpayers of £113 million a year through direct grants and facility time. Does the Minister agree that any part-time or full-time union work should be paid by the unions rather than the taxpayer? Will he update the House on the progress made to reduce that unnecessary cost to the taxpayer?

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[Edward Miliband]

No, Mr Speaker. I am raising an issue about a rip-off of the taxpayer, which the British people know when they see it. The reason this matters—[Interruption.] The reason this matters—[Interruption.]

[Mr Speaker]

Order. The orchestrated barracking is very predictable and also incredibly tedious, but it will not stop us getting through Prime Minister’s questions; it just means that it will take a bit longer. Members should calm down, and take a tablet if necessary.

[Edward Miliband]

The reason this matters is that the sale was grossly undervalued. Shares that were sold for £1.7 billion on privatisation are now worth £2.7 billion, and who cashed in? Twelve of the 16 so-called long-term investors made a killing worth hundreds of millions of pounds within weeks.

Yesterday, the representative of the bank that sold the shares said there was an “understanding” with those investors. [Interruption.] That is what it says on the record, Mr Speaker. He said that there was an understanding with those investors about their long-term commitment to Royal Mail. So why were they allowed to make a fast buck?

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[The Prime Minister]

The Post Office workers were given their shares, and it is right that they were given their shares—let us celebrate the popular capitalism. I thought the right hon. Gentleman believed in empowering workers. We now have 140,000 workers who have got those shares. On the risk to the taxpayer, he ought to reflect on this—[Interruption.]

[Mr Speaker]

Order. There is far too much noise in the Chamber. Ms Mactaggart, you are an illustrious product of the Cheltenham ladies’ college. I cannot believe they taught you there to behave like that.

[The Prime Minister]

You are right, Mr Speaker, that there is a lot of history in this shouting, because of course in the past with all these privatisations we had the shouting of the Kinnocks, the shouting of the Prescotts and the shouting of the Straws. Over Easter, I was looking at Labour’s candidates and I saw that son of Kinnock is coming here, son of Straw wants to get here and son of Prescott wants to come here. It is the same families with the same message—it is literally the same old Labour. That is what is happening.

The right hon. Gentleman asked about taxpayer value, and here is what the National Audit Office said:

“Privatisation has reduced taxpayer risk to support the universal postal service”.

This is a good deal for taxpayers because this business was losing £1 billion and it is now making money, paying taxes and gaining in value—this is good for our country but bad for Labour.

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[The Prime Minister]

Six questions and not a mention of GDP; not a mention of what happened to employment figures while we were away; and not a mention of the fact that the deficit is getting better. We know that the right hon. Gentleman has a new adviser from America. It is Mr Axelrod, and this is what the right hon. Gentleman has been advised to say. Let me share it with the House as it is excellent advice. It is that

“there’s a better future ahead of us”—

but we must not—

“go backward to the policies that put us in this mess in the first place.”

I do not know what Labour are paying him--

[Mr Speaker]

Order.

[The Prime Minister]

I have not finished—[Interruption.]

[Mr Speaker]

In response to that question, the Prime Minister has finished, and he can take it from me that he has finished.

[Dr Liam Fox (North Somerset) (Con)]

From the cyber-attack on Estonia to the invasion of Georgia and the recent events in Crimea, we have seen a clear pattern of behaviour from the Kremlin, and the west has allowed wishful thinking to take the place of critical analysis. Given that defence exports from the EU to Russia have amounted to about €700 million in the past three years, not counting the €1.2 billion order for French warships, is it not about time that they were targeted for EU sanctions?

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[Sir Peter Tapsell (Louth and Horncastle) (Con)]

Reverting to the subject of Royal Mail, as the leader of the stockbroking team that brought British Gas to the market and as the author of the phrase “Ask Sid”, may I tell the Prime Minister that the Opposition’s questions about, and their criticisms of, the way in which the Royal Mail launch was handled show their total ignorance of City markets? The fact is that when one tries to make an immense sale, one has to take infinite trouble to find people to underwrite it, and they are not able to prophesy what stock markets will be like a week ahead. Therefore, the prudent way in which this sale was handled was very sensible—[Interruption.] Do stop waving. You are waving goodbye.

[Mr Speaker]

Order. People should not gesticulate at the right hon. Gentleman. I know that he is nearing his completion.

[Sir Peter Tapsell]

If an issue fails, those institutions responsible for its launch are ruined.

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[The Prime Minister]

I am grateful for my hon. Friend’s question. Recent figures showed that manufacturing was one of the faster-growing sectors of our economy, which I welcome, but what the Chancellor said so powerfully in his Budget is that we are not resting on our laurels or saying that the job is done. There is more work to address the fundamental long-term weaknesses of the British economy: we need to manufacture more; we need to export more; we need to save more; and we need to invest more. Unlike the Labour party, we have policies that promote all those things.

[Mr Speaker]

I will allow some injury time, because there has been so much noise.

Not on this occasion from her seat, but on her feet, I call Fiona Mactaggart to speak.

[Fiona Mactaggart (Slough) (Lab)]

Thank you very much, Mr Speaker. Has the Prime Minister seen the survey showing that two thirds of local councils are either dimming or cutting their streetlights at night? Does he think that women are feeling safe in their local communities at night under his Government?