Remploy

Thomas Docherty Excerpts

Thursday 4th July 2013 Commons Chamber

[Esther McVey]

My hon. Friend asks a very good question: how many more people can be helped into work, and into mainstream work? That is what we are doing. We now have £350 million to do that. We have got to look at what works, get value for money and support as many people as possible.

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

First, may I echo the positive message from my right hon. Friend the Member for Stirling (Mrs McGuire) about the advance notice given? That certainly compares very favourably with the MOD. On Cowdenbeath Remploy, there will be great disappointment in my constituency and that of my hon. Friend the Member for Glenrothes (Lindsay Roy), and the Minister knows the excellent work done by us and my right hon. Friend the Member for Kirkcaldy and Cowdenbeath (Mr Brown). Will she meet the three of us as soon as possible to discuss what the options are for the two factories in Fife?

[Esther McVey]

I will indeed. I have met the hon. Gentleman and his colleagues as a collective group in the past, and I will certainly do so again.

Budget Resolutions and Economic Situation

Thomas Docherty Excerpts

Friday 22nd March 2013 Commons Chamber

[Mr Duncan Smith]

I agree with my hon. Friend and thank him for reminding me that we need to centre the measure down to constituency level, so that hon. Members know what it does. With my right hon. Friend the Chancellor, I will endeavour to ensure that every constituency is informed about how many people will be lifted out of tax and how many will benefit.

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

rose—

[Mr Kevan Jones]

rose—

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[Jacob Rees-Mogg]

There is a union of people whose seats have “North East” in their names and who make helpful interventions. I am extremely grateful to the hon. Gentleman because he leads me right to my next point, which is about the absolute essence of where growth will come from. I refer right hon. and hon. Members to page 56 of the “Economic and fiscal outlook” produced by the Office for Budget Responsibility, which contains charts on household leverage indicators. That is crucial because about three-quarters of the economy is dependent on private consumption. What we needed, and what has taken time, is for household budgets and balance sheets to rebalance at the same point as the Government balance sheet and budget.

In these charts we see that income leverage—interest payments as a percentage of income—is now at an historic low. That is important because it means that households can now afford to spend. Even more important, asset leverage is back alongside historic averages, so households are no longer over-geared in the way they were in 2007 and 2008. I actually think that the figure on household leverage is overstated because there is still a lot of bad debt in the system that the banks have been reluctant to write off because of concerns over their balance sheets. That is what has happened over the past few years. By following stable and sensible policies, the Government have allowed households to shore up their balance sheets, which means that they will now be in a position to begin to spend again should they wish.

Having looked at the big macro picture of two crucial things—Government expenditure under control, and household balance sheets restored—it is worth considering some of the positive detail within the Budget. The £2,000 cut in national insurance for businesses is fantastic. We know that small businesses are the ones that create new jobs—a series of data from the United States show that, on average, large companies shed 1 million jobs a year, while small companies create just over 1 million jobs a year. The reason for that is straightforward: large companies are always looking to cut costs, but small companies are where new ideas are built up. Anything that helps small businesses is welcome and national insurance is a very bad tax on jobs. I hope that ultimately the Government will look at national insurance in the round, but that will need to be in a time of boom, rather than a time of austerity.

The other policy that is relevant to today’s debate, which was opened by my right hon. Friend the Secretary of State for Work and Pensions, is the £10,000 tax threshold. That is a joy to behold because it gets us away from the taxation and benefits merry-go-round where people on low incomes are taxed and then given back some of their own money, once the Government have taken a cut for administration. We want to get that threshold as high as possible so that we do not tax people and then give them benefits. We want to get people out of that altogether, and out of the dependency culture that exists when we tax people on low incomes.

This measure has a further benefit if it can be extended and if the national insurance threshold can be raised, because that will reduce the administration of employment. If the national insurance threshold can be raised towards the £10,000 tax threshold, employers will be able to pay their employees without having a big administrative burden on top. I hope the Government will look at that as it would be a fantastic boost to employment. I think it could possibly be paid for simply by shifting the band for employees national insurance into line with the increase that would be made from the current level to £10,000. I accept there would be a gap on employers, but that might be minimised by doing it in the way I suggest.

[Thomas Docherty]

The hon. Gentleman is making a far more eloquent case than the Chancellor managed for this set of policies. He seems to be saying, however, that we should not have a contributory system towards the welfare state. Is that where his argument is heading?

[Jacob Rees-Mogg]

No, that is not where I am heading. I am saying that the contributions of people at the lowest end of the pay scales should be minimised.

The hon. Member for Hyndburn (Graham Jones) spoke of the Government’s housing scheme. It is potentially a very exciting scheme, and the most important part of the Budget. There has been some talk of the risk, but I believe there is very little risk. I have had a look at the house prices figures produced by the Land Registry from 2008 to date, and at inflation over the same period. If we combine the two, we see that house prices on the Land Registry index have fallen in real terms by nearly 25% since 2008, which means that the scheme is being introduced at a point when house prices are sustainable, and when the risk to the Government’s balance sheet is limited. The scheme has the great potential not only to allow people to buy properties for the first time or to move into better properties, but all that goes with that, such as refurbishment, extra spending on DIY and so on. The measure could be a boost to consumer expenditure as well as free up the housing market.

I have one caveat to make before I conclude. I am concerned about the general anti-avoidance provision, which may threaten the rule of law. I will speak more about that later.

Remploy Marine Fife

Thomas Docherty Excerpts

Tuesday 15th January 2013 Commons Chamber

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

I congratulate my right hon. Friend the Member for Kirkcaldy and Cowdenbeath (Mr Brown) not just on securing this important debate but on the leadership that he has shown in Fife. We are heartened to see so many Members across the House—and people in the Press Gallery—taking a keen interest in the affairs of Fife, and it will be heartening to all our constituents to know that the county of Fife has such a warm place in the hearts of Members from all over the United Kingdom who are here today.

I am conscious of the need to allow the Minister adequate time to address the issue, so I shall be brief. As my hon. Friend the Member for Glenrothes (Lindsay Roy) said, we will shortly meet the Minister to hold a more detailed discussion, but I should like to pose three specific questions on which she might provide information tonight. She will know the quality of the product and the fact that it is sold across the world. On the seven seas, one can find a product that is made in Fife. Will she tell the House what discussions she intends to have, or has already had, with the Ministry of Defence about what more can be done to encourage the Royal Navy to purchase the product? Will she say what productive discussions she has been able to have with the Scottish Government about how we can all work together and how they can be encouraged to improve further, as my right hon. Friend the Member for Kirkcaldy and Cowdenbeath said, their offer to support the factories? Does she hope to have an opportunity to visit either factory, or both factories, in the near future so that she can meet the work force face to face and see the excellent product that they produce? I am conscious of the need to allow her adequate time to reply, so I shall conclude.

Remploy

Thomas Docherty Excerpts

Monday 10th December 2012 Commons Chamber

[Esther McVey]

I agree with my hon. Friend, and that is precisely what the Sayce review recommended—that we get as many people as possible into mainstream work. There were 2,200 disabled people working at the Remploy factories, and in the last two years alone Remploy Employment Services has put 50,000 similar people into mainstream work.

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

The Minister will be aware that the two factories in Fife, in Cowdenbeath in my constituency and in Leven, are both left in limbo and unclear about their future. Will she meet me and my hon. Friend the Member for Glenrothes (Lindsay Roy) early in the new year so that we can understand better the possible options for the future of those two important factories?

[Esther McVey]

I will indeed meet the hon. Gentleman at his earliest possible convenience and mine.

Oral Answers to Questions

Thomas Docherty Excerpts

Monday 18th July 2011 Commons Chamber

[Maria Miller]

My hon. Friend raises an important point, and that is just the sort of detail we are working through. It is absolutely our intention to ensure that transitional arrangement are in place to help parents in the situation she describes to have continuing payments into the future, and I am certainly making that a priority.

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

8. What the terms of reference are of his review of the mobility component of disability living allowance.

[The Parliamentary Under-Secretary of State for Work and Pensions (Maria Miller)]

We have announced that we would not remove the DLA mobility component from people in residential care from October 2012 and would consider the issue as part of our wider reform to introduce the personal independence payment. It is only right that we consider carefully the needs of this particular group to understand their current circumstances before we come to any final decision on how best to address their needs in future.

[Thomas Docherty]

If that is the case, perhaps the Minister can explain why these savings still appear to be in the Chancellor’s Red Book. Has she discussed the matter with her colleagues in the Treasury?

[Maria Miller]

The hon. Gentleman has probably raised this matter with me before. The Red Book reflects the current position, which is that support for care home residents is being reviewed alongside the broader reform of DLA. The figures in the Red Book make it clear that those savings will be made as part of the Government’s overall reform of the programme, which is very consistent with what I have said, and will be part of the reform of PIP.

Oral Answers to Questions

Thomas Docherty Excerpts

Monday 22nd November 2010 Commons Chamber

[Chris Grayling]

There are two aspects to what we are doing. First, we are seeking to improve the process not simply within the assessment itself, but before and after, in the way that individual cases are handled. I hope that that will make a difference. Secondly, my Department is working with the Ministry of Justice to ensure that we streamline and improve the appeals process, create extra capacity to deal with any appeals that result from next year’s migration and have a system that works as effectively as possible.

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

The Secretary of State knows how vital Remploy and other supportive workshops are in helping people back into work. Will he outline the steps that the Government are going to take to promote that through public procurement, and will he or one of his Ministers meet me and trade union representatives to discuss the matter?

[Maria Miller]

The hon. Gentleman knows from the recent spending review settlement that Remploy’s modernisation plan and funding are in place, and we will continue to monitor its performance against that. I have already met trade union officials about Remploy’s future, and I will continue to do so as we move forward with the modernisation plan.

Jobs and the Unemployed

Thomas Docherty Excerpts

Wednesday 7th July 2010 Commons Chamber

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

I want to talk about one of the biggest challenges that the coalition Government, the House and the country face: jobs and unemployment in our country, and what the Government can do to tackle them. The Opposition motion would be hard to support in any circumstances, but it would be more credible if it had started with an apology. Nearly 2.5 million people are now unemployed. To put that in perspective, that is 500,000 more than the entire population of Slovenia, a nation that we recently played in the World cup. That is a terrible figure, and also a terrible legacy to have inherited from the previous Government.

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

Will the hon. Gentleman give way?

[Nadhim Zahawi]

I will not, as I would like to make some headway in my speech.

Following the election of the new Government, it immediately became clear to us that we faced a series of immense challenges in tackling unemployment and worklessness. Let us be honest—those problems have not come about purely because of the recession. Over the past decade, the very fabric of this nation has been altered. This is now a nation of huge government and huge inefficiency, and one that does not do much for those looking for work. Instead, it seems to encourage those who do not want to work. Those factors have undermined this country’s competitiveness, its efficiency and—perhaps most importantly—its social fabric.

This is a self-aggravating situation. Those who are brought up in workless households are themselves more likely to experience worklessness, welfare dependency and poverty in later life. This is not an issue we can ignore. It is vital that we address the causes and begin to secure solutions to these enormous problems. That can be done by making changes to the way in which the welfare state is operated. My right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith), the Secretary of State for Work and Pensions, alongside the right hon. Member for Birkenhead (Mr Field) and John Hutton, the former Member for Barrow and Furness, have the historical credibility and experience to make a real difference. Focusing on key issues such as the long-term unemployed and the high level of youth unemployment is critical.

Business is another key area in which a real impact can be made. Supporting our businesses and reducing the regulation that strangles them will lead to more opportunity and more jobs. That is a tried and tested solution and one that I, as a business man, will address shortly, but for now I feel that I cannot ignore the record of those sitting opposite me. After 13 years of a Labour Government, huge numbers of people are living off the welfare state. A whole swathe of society has been led to believe that the culture of aspiration and hard work on which Britain has long prided itself can be ignored in favour of welfare and idleness. Yet I do not blame those people, because it is the last Government who allowed that culture to become ingrained in the British psyche. It is the last Government who bloated not only the welfare state but the public sector. I would never accuse them of doing that for reasons of self-interest, but the questions have to be asked: why was it allowed to happen, and what can we do to rectify it?

Let me turn briefly to the figures, for they do not lie. As I mentioned earlier, unemployment is now just shy of 2.5 million, with nearly 1.5 million people claiming jobseeker’s allowance. We also have 1.7 million people who are long-term unemployed, having been without a job for at least 12 months. Of those, 1.4 million have been on out-of-work benefit for nine or more years; that is a deep rut that is hard to climb out of. I should also make it clear that that does not take account of the 2.6 million people in receipt of incapacity benefit and employment and support allowance. Ours is the nation with the highest number of workless households in Europe. There were 5.9 million working-age benefit claimants in November 2009, and we have an incapacity benefit system that makes it more likely that those on it will die or reach pension age, rather than getting another job after two years of claiming. That is the legacy we have been left.

The last Government have clearly failed. They led this great nation for 13 years, and that is the record that has been left. They may point to and blame the recession; they may claim that factors out of their control led to this situation; but I say no, they cannot so easily shirk the responsibility that the people of Britain placed on them in 1997. They claimed that they would take “Britain forward not back”, yet it is backwards that we have gone: back to the dole queue, back to unemployment, and back to poverty. It is now up to us, the coalition Government, to rectify the mistakes of the past and ensure that once again we “Get Britain working”.

Of course, an enormous number of areas must be discussed if we are both to understand and to begin to deal with this problem: the welfare system and what we can do to change and streamline it, the huge problem of youth unemployment, and what we can do to help lone parents back into work. But as a business man myself and a keen believer in the power that enterprise in the UK has in job creation, I intend to focus on that area. I am a firm believer in creating real jobs in the real economy. We have made it clear that a key element of our programme is boosting economic growth and, as a direct result, creating jobs to ensure that Britain has an economic climate in which private enterprise can compete and invest with confidence. It is vital that we ensure that jobs are available both for those looking for work, and for those whom we will try to get into work.

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[Nadhim Zahawi]

My hon. Friend is right, and that is one of the areas I am passionate about.

[Thomas Docherty]

I am deeply puzzled that the hon. Gentleman argues, on the one hand, for less intervention and regulation, and on the other that the privately owned banks have to be instructed to lend more money. Which argument is he making this evening?

[Nadhim Zahawi]

That is not the point I was making. If the hon. Gentleman had been listening carefully, he would have realised that my point is that we have to inquire into what is happening. I am not talking about instructions, but about understanding the dynamic so that we can create a similar environment to that in Silicon valley, for example, where people can get access to funding more easily than in our country.

As a business man, I also know first hand the damaging effects that over-burdening business with regulation has on British companies. It is imperative that we reduce regulation. The coalition Government aim to do just that. The level of regulation in this country is simply staggering, and another example of the top-down bureaucratic approach taken by the last Government. The Institute of Directors has estimated the annual cost of regulation to UK business at £80 billion, and has stated that the ever-increasing burden of paperwork hinders business from growing and, ultimately, creating jobs. That is why we have announced plans fundamentally to review all regulations scheduled for introduction over the coming year. We will put in place a system of sunset clauses so that regulations cease to be law after seven years, and we have also created the one in, one out rule to reduce for ever the regulation created in Whitehall. All of these are key measures in ensuring that our businesses have the opportunity to thrive and, more importantly, to hire.

The level of unemployment in this country is a huge problem, but I am confident that, with the new coalition Government in power, we can address and reduce it. This issue requires a complete set of solutions, all of which need to be implemented together in an effective and decisive manner.

If we balance the books of Government, hold down interest rates, encourage business to invest and reduce the regulation that strangles business, I believe that, at the very least, we will ensure that there are jobs available for those who want them and an economy that can support them.

I support the amendment to the motion.

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[Thomas Docherty (Dunfermline and West Fife) (Lab)]

I shall be brief, given the time available. May I begin by wishing the hon. Member for Mid Norfolk (George Freeman) all the best? He made an excellent maiden speech and I am sure that he will be a valuable addition to his Front Bench in the not-too-distant future if he continues at that pace of contribution.

In just over half an hour, the House has the opportunity to send a message to the country. On this side of the House, we know that Conservative Members are ideologically driven towards cuts. There is nothing new or fresh about their ideas. This is an opportunity in which they are revelling as they make cuts to programmes and policies that they have never liked and never supported.

Those Liberal Democrats who are sitting alongside their new best friends, however, need to hang their heads in shame. It is interesting to look at the roll of dishonour that lists the names of those Liberal Democrat Ministers who have signed this appalling amendment, which revels in a programme of cuts. Fife, Scotland and the whole of the United Kingdom is watching again and the Liberal Democrats must face up to reality—they cannot cosy up to their Conservative pals for the next five years without realising that the people of Britain will punish them for it at the next general election.