Debate on the Address

Debate between Tony Baldry and Gavin Shuker

Wednesday 9th May 2012 Commons Chamber

[Tony Baldry]

Yes, this Government have probably achieved more in two years than the Blair Government achieved in the whole of their first term.

[Gavin Shuker]

Why does the hon. Gentleman believe that we are in the first double-dip recession for 37 years?

[Tony Baldry]

The hon. Gentleman has just heard me comment on the legacy of his Government, so I find it extraordinary that he has the cheek and audacity to ask such a question. The Labour Government left the country with no money and the biggest debt crisis of our lifetime. Indeed, over many years, this country built up massive debts, which we have to pay off. Of course, it is much more difficult to do that when so much of the rest of Europe is in recession. As I suspect France will soon demonstrate, trying to pile debt upon debt is what got Britain and Europe into such difficulties in the first place. It did not work for Britain over 13 years of a Labour Government and would not work now. The eurozone’s troubles are caused by too much debt, the burden of excessive public spending and the burden of excessive public borrowing. It is not surprising that Government are seeking the approval of Parliament relating to the agreed financial stability mechanism within the euro area.

It is no mean task recovering from the deepest recession in living memory, accompanied as it was by a debt crisis. Our banks had too much debt; our households had too much debt; and the Government had too much debt. As Sir Mervyn King, commenting on the performance of the last Government, observed in “The Today Lecture” that he gave last week while the House was in recess:

“Bailing out the banks came too late though to prevent the financial crisis from spilling over into the world economy. The realisation of the true state of the banking system led to a collapse of confidence around the world...unemployment in Britain rose by over a million....to many this will seem deeply unfair and it is. I can understand why so many people are angry.”

One can speculate only that perhaps more than a million people may have lost their jobs unnecessarily because the previous Government failed to act on warnings from the Bank of England.

Notwithstanding the challenge, Britain has so far hung on to our triple A credit rating. We have kept a lid on borrowing costs and, compared with other countries in the eurozone, many of which are in the process of changing leaders or just starting to tackle their debts, we are thriving.