Oral Answers to Questions

Debate between Vince Cable and Kelvin Hopkins

Thursday 26th March 2015 Commons Chamber

[Kelvin Hopkins (Luton North) (Lab)]

12. What assessment he has made of the effect on the balance of trade of depreciation of the euro.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

In the latest Office for Budget Responsibility forecast, while sterling is assumed to be stronger against the euro, the balance of trade is forecast to improve. I recognise that a strengthening pound can create pressure for some exporters, but any discernible impact on the balance of trade has been more than offset by other factors, such as demand conditions in overseas markets.

[Kelvin Hopkins]

The UK has a trade deficit of about £1 billion a week with the rest of the EU, equivalent to 1 million jobs lost, and the significant depreciation of the euro rate against sterling, while bringing a short-term benefit to the trade balance because of the J-curve effect, will cause serious longer-term damage to the economy. What discussions has the Secretary of State had with the Chancellor and the Governor of the Bank of England about this worrying matter?

[Vince Cable]

I have had a lot of discussions with both of them about this issue, but since the hon. Gentleman is an expert on the subject he will know that what really matters is the real effective exchange rate. We have devalued substantially against the dollar, by more than 10%, and that must be put into the mix. One lesson we learned from the 2008 financial crisis, when we had sterling devaluation of 25%, is that that does not automatically translate into improved trade.

Amendment of the Law

Debate between Vince Cable and Kelvin Hopkins

Thursday 19th March 2015 Commons Chamber

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

It is a privilege to respond to the Budget. I have calculated that, if we include emergency Budgets, this is the 20th successive Budget to which I have responded. I have begun to recognise some common traits, one of which is that the shadow Chancellor, whoever it is, has to adopt a tone of outrage. The current shadow Chancellor does outrage very well—I will concede that—but what he does not do so well is memory. He has the same problem as his party leader of forgetting important things.

The shadow Chancellor seems, for example, to have had problems remembering his own version of the millionaires’ tax cut, when throughout almost all the period of Labour Government the top rate of tax for millionaires was 40% rather than the 45% it is today. I think he has forgotten his authorship of that famous phrase, “No more boom and bust,” and his own role in boosting the banking sector such that it became overweight, toppled over and caused much of the damage and hurt we are still living with today. I think he has forgotten his record as a forecaster: we all remember his triple-dip recession—there was no triple and there was not even a recession.

There is help at hand, however, because one of the genuinely good legacies of the previous Labour Government is the Crick Institute, which will open shortly and will do medical research. I understand it will be taking forward some of the excellent work of University college London on neural pathways. That will open the door to a cure for amnesia, which seems to be the shadow Chancellor’s main problem.

[Kelvin Hopkins (Luton North) (Lab)]

Does the Secretary of State not accept that the real change took place when Mrs Thatcher and Geoffrey Howe abolished exchange controls, raised interest rates, raised the value of the pound, destroyed manufacturing and shifted power to the City?

[Vince Cable]

From what I remember of the facts, the biggest decline in manufacturing took place when the hon. Gentleman and his colleagues were in government. I will come back to that later.

Oral Answers to Questions

Debate between Vince Cable and Kelvin Hopkins

Thursday 8th January 2015 Commons Chamber

[Kelvin Hopkins (Luton North) (Lab)]

9. What recent assessment he has made of the effect of the UK’s EU membership on businesses and the UK economy.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

The European single market gives British firms access to 500 million consumers and, as our largest trading partner, is responsible for almost half this country’s exports. There is a clear direct benefit to British businesses from European Union membership.

[Kelvin Hopkins]

Britain has an enormous and persistent trade deficit with the EU, equivalent to about 1 million lost British jobs. The growing crisis in the eurozone will only make the position worse, and there is no end in sight to its economic problems. What are the Government going to do to protect Britain’s economic interests in this dire situation?

[Vince Cable]

I am surprised that the hon. Gentleman does not share the consensus among Opposition Members about the benefits of British membership. I am sure that if he occasionally crosses the border into Luton South and visits the vehicle production institution, he will recognise the EU’s importance to the industry and of its having the European Union negotiate access to bigger markets such as north America, as it currently is.

Oral Answers to Questions

Debate between Vince Cable and Kelvin Hopkins

Thursday 20th December 2012 Commons Chamber

[Kelvin Hopkins (Luton North) (Lab)]

7. What assessment he has made of the latest construction output figures; and if he will make a statement.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

The latest Office for National Statistics figures show that the seasonally adjusted volume of construction output fell by 2.5% in the third quarter of 2012. The volume of new construction orders, however, rose by 5.4% in the third quarter of 2012.

[Kelvin Hopkins]

I thank the Secretary of State for his answer, but the fact is that construction is in deep recession, with output falling by 10% between the fourth quarter of 2011 and the third quarter of this year. Industry is, indeed, in crisis. Is it not time for the Government to boost construction, including a programme of local authority house building to house the almost 2 million households on waiting lists?

[Vince Cable]

Certainly, the construction industry has had a torrid time ever since the collapse of the bubble in residential and commercial property. I know that there is a lot of distress in the sector, but there is some indication of orders improving. As the hon. Gentleman knows, the Government have taken action in the past few months. In September, we launched the programme of guarantees for social housing bodies to proceed with construction and raise capital for that purpose, and the autumn statement announced £5.5 billion-worth of new commitments, mainly through guarantees, for infrastructure projects.

Oral Answers to Questions

Debate between Vince Cable and Kelvin Hopkins

Thursday 13th January 2011 Commons Chamber

[Kelvin Hopkins (Luton North) (Lab)]

My hon. Friend the Member for Luton South (Gavin Shuker) and I have been in correspondence with the Secretary of State about the future of the General Motors van plant in Luton. I thank him for his reply, which we received this week. It seems from press reports that, as of yesterday, there are still uncertainties about the future of the van plant. Will he now intervene directly with the company to ensure that a new vehicle comes to Luton for the period after 2013?

[Vince Cable]

Yes, I know that this is an extremely important part of the British car industry; indeed, it is a highly productive and successful one. I have spoken to Mr Reilly about the issue, and I think that this part of the industry has a very good future.

Higher Education and Student Finance

Debate between Vince Cable and Kelvin Hopkins

Tuesday 12th October 2010 Commons Chamber

[Vince Cable]

The answer to that question is similar to the one that I gave on the other STEM subjects. Medicine is a costly course, which is why continuing support is needed through the teaching grant from Government to keep graduate contributions at a moderate and reasonable level, and that is what we shall aim to do.

[Kelvin Hopkins (Luton North) (Lab)]

I was one of 33 Labour Members who voted against the introduction of fees in 1998. I took that view then, and I have not changed it at all—I do not believe that it is unaffordable or unsustainable. May I suggest to the Secretary of State that the Government seriously attack the tax gap, as less than 10% of the tax gap would pay for fees or, indeed, a quarter of the amount of tax breaks for the rich on their savings?