(13 years, 10 months ago)
Commons ChamberRead Hansard Text Read Debate Ministerial Extracts
Jonathan Evans (Cardiff North) (Con)
1. What recent discussions she has had with ministerial colleagues on encouraging the relocation of businesses to Wales.
The Parliamentary Under-Secretary of State for Wales (Mr David Jones)
Before I answer my hon. Friend, I am sure that the House will want to join my right hon. Friend and me in expressing condolences to the family of the right hon. Lord Walker of Worcester, whose death at the age of 78 was announced earlier this morning. A distinguished Member of the other place and a former Secretary of State for Wales, he was a good friend to the Welsh people.
My right hon. Friend the Secretary of State and I are committed to attracting more inward investment to Wales, as we believe it will be a key driver for future economic growth.
Jonathan Evans
First, may I associate myself with what my hon. Friend said about Lord Walker? May I also take the opportunity to welcome my hon. Friend the Under-Secretary and my right hon. Friend the Secretary of State to their new responsibilities and to wish them well in the challenges that lie ahead?
Given the recognition even by the First Minister both in an interview on “The Andrew Marr Show” and during the Welsh Labour conference this year that there are not enough private sector jobs in Wales, does my hon. Friend agree that success depends on driving up private sector jobs in the Principality in the future?
Mr Jones
Yes, my hon. Friend is entirely right. The private sector is the key to future growth in Wales, which is why yesterday’s Budget announced a major package of corporation tax reform that is aimed at making Britain—and, of course, Wales—one of the most competitive parts of the G20. In particular, the exemption of up to £5,000 of employer national insurance contributions for each of the first 10 employees, which applies outside London and the south-east, will be of benefit to Wales.
Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC)
May I associate myself with the condolences expressed to the family of the late Lord Walker and also congratulate the right hon. Lady and the hon. Gentleman on their appointment to their posts?
Yesterday, there was a recognition by the Government of the need to grow economies outside the south-east of England. We have argued long and hard about the overheating of the south-east and its cost to the north of England and Wales. Will the Minister consider the idea of either regionalising corporation tax according to gross value added or devolving it altogether to the Welsh Assembly so that the needs of business can be met and real support provided for it?
Mr Jones
I am glad to hear that the hon. Gentleman welcomes the announcements in yesterday’s Budget. The announcement of the exemption of up to £5,000 of national insurance contributions for new employment outside London and the south-east will certainly be of benefit; to that extent, it is a major departure, which I am sure that the entire House will welcome.
Philip Davies (Shipley) (Con)
2. What recent discussions she has had with the First Minister on the proposed referendum on the law-making powers of the National Assembly for Wales.
Mr Andrew Turner (Isle of Wight) (Con)
8. What recent discussions she has had with the First Minister on the proposed referendum on law-making powers of the National Assembly for Wales.
The Secretary of State for Wales (Mrs Cheryl Gillan)
May I also echo the words of my hon. Friend in recognising the tremendous work that the right hon. Lord Walker of Worcester did in this House as one of my predecessors as Secretary of State for Wales from 1987 to 1990? I am sure that all our thoughts are with his family at this sad time.
I have had regular discussions with the First Minister on the proposed referendum on the law-making powers of the National Assembly for Wales.
Philip Davies
Given that so few people in Wales actively voted for the National Assembly in the first place, will my right hon. Friend consider having a turnout threshold for any referendum on whether to give the Assembly more powers so that at least a respectable number of people vote before we make any constitutional changes?
Mrs Gillan
I do not know whether my hon. Friend is aware of it, but there was a threshold of 40% for the previous referendum. I am afraid to tell the House, however, that I am bound by the Government of Wales Act 2006, in accordance with which there is no threshold, but a simple majority. It is therefore important, I believe, that the electorate in Wales uses its right to vote on an important issue. I hope that when the referendum is run, they will turn out in numbers.
Mr Andrew Turner
What progress has the Secretary of State made on the question for the referendum?
Mrs Gillan
No work was done in the Department on the question prior to the general election. I am pleased to tell the House, however, that the project board has produced a question and a preceding statement for the referendum on law-making powers for the National Assembly for Wales, and I am sending it today to the Electoral Commission for the 10 weeks that it needs to carry out its work in proving that question. In the short time I have been in the office, I think I have achieved more than my predecessor did in the time from 17 February, when notice was given to him that a referendum was required.
Paul Murphy (Torfaen) (Lab)
May I congratulate the right hon. Lady on her new job? Despite what the London commentariat say, it is a very important job indeed. She will know that, during any referendum, the question of Members of Parliament from Wales will be an issue. Will she confirm that she agrees with her previous statement that there should be 40 Welsh MPs?
Mrs Gillan
I thank the right hon. Gentleman for his warm welcome. When I dealt with him from the other side of the Dispatch Box, I always found that his courtesy was unfailing. He refers to the potential boundary changes and the reduction of the number of MPs—I am sure that no one outside the House will be arguing for more highly paid politicians. However, I take very seriously the representation of Wales in the House, and nothing will be done in reducing the number of MPs that will disproportionately affect the share of voice that Wales has in the House and at Government levels.
Susan Elan Jones (Clwyd South) (Lab)
Would the Secretary of State like to campaign for a yes vote in the referendum, or will she consult the electorate of Buckinghamshire first?
Mrs Gillan
I am very proud to be the first woman to occupy the position of Secretary of State for Wales, and I was born and brought up in Wales. It is singularly important that the people of Wales decide on the referendum and the outcome, and I will campaign for neither a no vote nor a yes vote. I and my Minister will remain neutral, which is the proper thing to do. The hon. Lady needs to familiarise herself with her own party, as I believe that there are split views in the Labour party as well.
Mr Mark Williams (Ceredigion) (LD)
The Secretary of State will be aware that some of us on these Benches will campaign with great enthusiasm for the referendum, and were disappointed that the referendum that we hoped for in October did not come about. Does she think the fact that it did not occur reflects on the inactivity of the previous Government? Furthermore, in welcoming her news about the question, may I ask whether the Government will make a speedy commitment to a referendum in the spring of next year?
Mrs Gillan
I thank my hon. Friend for that question. As we said in the coalition agreement, and as I said before the election, I am determined to allow the people of Wales to decide in a referendum. It is only polite to accede to the request of the Assembly, which, after all, voted unanimously for a referendum, and I am sad that the previous Secretary of State commenced no work on the question and confined himself to work on the order that we will eventually lay before the House. I am pleased to confirm that I am sending the preamble and question to the Electoral Commission.
Mr Speaker
May I just gently ask the Secretary of State to face the House rather than having her back to the Chair? That would be very helpful.
Mr Peter Hain (Neath) (Lab)
May I join in the commiserations to Lord Walker’s family on his death?
May I congratulate the right hon. Lady, especially on being the first woman Secretary of State for Wales? However, as accounts given to the media have traduced the truth, I must ask whether she is aware that as Secretary of State, on Monday 10 May, in the Wales Office, I specifically asked and received an assurance from senior officials that work I had put in train months before would have enabled a referendum to be staged this October. Before she answers, may I remind her that whatever she has been saying to the media, she must not mislead this House, especially as she will not have seen the official papers detailing my preparations for the referendum?
Mrs Gillan
I thank the shadow Secretary of State for his welcome. I cannot comment on the advice received by the former Administration; however, I do have access to documents that have indicated to me that no work was done on the question before the general election. If the right hon. Gentleman wishes to have a discussion with me about the matter, he is quite able to do so, but no work was done by the Department. The only work carried out was on the order that was to be laid before the House. This was the first question that I asked when I walked into the Department.
Roger Williams (Brecon and Radnorshire) (LD)
3. What recent discussions she has had with the Chancellor of the Exchequer on the findings of the Independent Commission on Funding and Finance for Wales.
The Parliamentary Under-Secretary of State for Wales (Mr David Jones)
My right hon. Friend the Secretary of State has discussed the issue of funding for Wales with the Chief Secretary to the Treasury, and also met the hon. Gentleman last week to discuss the subject. I hope that the hon. Gentleman found that helpful.
Roger Williams
I welcome the Minister and the Secretary of State to their posts.
Notwithstanding the review that has been promised after a successful referendum, there is clear and understandable concern about the difficulties that will be faced in Wales because of the necessary measures being taken to reduce the deficit. Will the Minister commit himself to a dialogue with Gerry Holtham and with Treasury colleagues to ensure that Wales is given a fair deal, given its historic levels of underfunding and the severe pressure put on the Welsh Assembly Government?
Mr Jones
The Government are committed to ensuring that Wales is properly funded, but it is clearly right for the Treasury’s energies to be concentrated on tackling the deficit left behind by the Labour party. We will certainly give careful consideration to the Holtham commission’s final report, which is to be published this summer. My right hon. Friend the Secretary of State has already met Mr Holtham, and intends to have further meetings with him.
Mr Peter Hain (Neath) (Lab)
Do the Minister and the Secretary of State recall that last November the Treasury was persuaded to accept an historic reform ensuring that Wales was not disadvantaged under the Barnett formula? Why are they not ensuring that the agreement to protect the Welsh Budget is implemented? On Barnett, the Chancellor promised on 12 February 2010 to
“move on it pretty quickly, as soon as a new Government is elected.”
How on earth can the Secretary of State and the Minister have allowed that pledge to be dumped in the long grass? Instead of capitulating immediately to savage cuts, why do they not stand up and fight for Wales as their Labour predecessors did?
Mr Jones
Having read the so-called pledge that the right hon. Gentleman received from the Treasury, I think it fair to say that it was almost meaningless. As he knows, the Holtham commission is due to report substantively next month. My right hon. Friend and I intend to have further discussions with Mr Holtham, and it would be wrong to pre-empt his decision.
Greg Hands (Chelsea and Fulham) (Con)
4. What discussions she has had with the Secretary of State for Defence on marking Armed Forces day in Wales in 2010.
The Secretary of State for Wales (Mrs Cheryl Gillan)
Let me begin by paying tribute to the brave Welsh men and women serving in our armed forces throughout the world, particularly in Afghanistan. They are doing a very difficult job, and I am sure that all Members present will join me in thanking them for their bravery and dedication.
I am delighted to be attending the national Armed Forces day event in Cardiff this Saturday, along with my right hon. Friend the Secretary of State for Defence, His Royal Highness the Prince of Wales and the Duchess of Cornwall. My hon. Friend the Minister will also be attending the north Wales event in Caernarfon in July.
Greg Hands
The Secretary of State will know that the whole country is looking forward to Armed Forces day. Last week we were delighted when the Prime Minister and the President of France met veterans at Royal hospital Chelsea, in my constituency. Can the Secretary of State tell us what specific proposals there are to involve veterans in the ceremonies in Cardiff on Saturday?
Mrs Gillan
We should be very proud that Cardiff was chosen for this year’s Armed Forces day celebration. On Monday, when I attended the ceremonial Armed Forces day flag-raising event at Cardiff castle, I was privileged to have several conversations with some of our veterans who were present, representing veterans from all over the United Kingdom. I understand that they will play a prominent part in the ceremonies on Saturday.
Owen Smith (Pontypridd) (Lab)
May I ask the Secretary of State to reflect on the impact of yesterday’s Budget on us in Wales, and in particular on public sector workers? Already 250 jobs have left my constituency. How many public sector jobs does the Secretary of State expect us to lose during the current Parliament?
Mrs Gillan
Well, I thank the hon. Gentleman for that question, but I find it hard to make a linkage to—
Mr Speaker
I am sure it will not be beyond the ingenuity of the Secretary of State somehow to respond in order, although I accept that this is a testing one.
Mrs Gillan
I am not sure how I will make that linkage to Armed Forces day, but I would say that for those who are low paid in the public sector I was delighted to see that the Chancellor had chosen not to freeze their pay for two years and to give them an increase of £250 in each year, which I am sure the hon. Gentleman would welcome. I also welcome that our Prime Minister went to Afghanistan and announced the doubling of the pay for our brave soldiers when they are serving on our behalf overseas.
Alun Cairns (Vale of Glamorgan) (Con)
Does my right hon. Friend agree that one of the best tributes we could pay to the armed forces would be to offer them the best training—world-class training—and that the proposed defence technical college for St Athan could well offer that training? What discussions has she had with the Secretary of State for Defence about this project, and about the delays caused by the last Administration?
Mrs Gillan
May I welcome my hon. Friend to his rightful place in the House, representing the Vale of Glamorgan? He knows what a strong supporter I am of the case for the training college at St Athan, and all I can say is that this is yet another example of how the Labour party did not stand up for Welsh interests. Labour did not get on with this project when it had the opportunity to do so when it was in government. May I also remind my hon. Friend that planning permission for this project was granted by a Conservative-led local authority back in 2009?
Huw Irranca-Davies (Ogmore) (Lab)
6. What recent discussions she has had with the Prime Minister on the representation of the interests of Wales in Cabinet Committees.
The Secretary of State for Wales (Mrs Cheryl Gillan)
I have regular discussions with the Prime Minister and Cabinet colleagues on a range of issues affecting Wales.
Huw Irranca-Davies
May I add my congratulations to the right hon. Member for Chesham and Amersham (Mrs Gillan) and her ministerial colleague on their elevation to the Government Front Bench, but will she confirm that the previous Secretary of State sat on as many as a dozen Cabinet Committees and his ministerial colleague sat on up to a dozen as well, and in the light of that—and of the delay in the referendum date, as well as the appointment of a lovable rogue whom I like very much indeed but is an arch devo-sceptic as Chairman of the Select Committee on Welsh Affairs, and the attack on Welsh MPs—will she tell us why this is not telling the Welsh that they—
Mrs Gillan
Oh dear me. I think the hon. Gentleman needs to catch up with the procedures of the House because I believe Select Committee Chairmen are now elected. That has nothing to do with the Government. Perhaps if the hon. Gentleman had spent less time sitting on Committees he would know about the changes that were made in the House. I must remind him that what impresses the electorate is not the number of Committees a Member sits on, but what they do for Wales. We have already done more for Wales in the five weeks we have been in office than the previous Administration did over 13 years. The hon. Gentleman might also like to note that we have reduced the number of the Committees that he sat on in his ministerial capacity to 11. It is better to have a small set of fully functioning Committees where relevant people continually discuss related issues than for Members to be able to boast that they are sitting on a lot of Committees.
David T. C. Davies (Monmouth) (Con)
May I also give a warm welcome to the Secretary of State for Wales and say, as somebody who might well be chairing a Committee, that I am sure that the vast majority of people in Wales will want us out and about in Wales trying to put right the problems that the Labour party created rather than sitting around in Committee Rooms?
Mrs Gillan
May I congratulate my hon. Friend on securing his new position on the Welsh Affairs Committee? I wish him well, and I hope he will bring education about devolution to this House, because I remember reading the last Select Committee report, which said that it was disappointing that, even after 13 years of the previous Administration, the Welsh Affairs Committee had found that
“Whitehall has not fully engaged with the complex nature of the devolution settlements.”
The ignorance of devolution arose under the last Government, and I hope my hon. Friend will, through the good offices of his Select Committee, put that right.
Mr Wayne David (Caerphilly) (Lab)
I congratulate the right hon. Lady on her appointment as the Secretary of State for Wales. As my right hon. Friend the Member for Neath (Mr Hain) has said, she is the first woman Secretary of State for Wales. However, she follows a time-honoured tradition of Conservative Welsh Secretaries who represent English constituencies. She represents Amersham and Chesham, or is it Chesham and Amersham? Anyhow, it is somewhere in Buckinghamshire. Could the Governor-General, or should I say the Secretary of State for Wales, tell me how many times she has visited Wales since her appointment?
Mrs Gillan
I do not know whether I should welcome the hon. Gentleman’s remarks or just feel sorry for him. I have lost count of the number of times I have been in Wales since I was appointed, but I think it is about nine or 10 already. If that is the best he can do for a question—to ask how many times I have been on a train—when we are facing such economic troubles in this country, then I do feel sorry for him, which was my first emotion.
Mr David Hanson (Delyn) (Lab)
7. When she next expects to discuss with ministerial colleagues the situation of manufacturing industry in Wales.
The Parliamentary Under-Secretary of State for Wales (Mr David Jones)
My right hon. Friend the Secretary of State has discussed various aspects of the Welsh economy, including manufacturing, with ministerial colleagues and will continue to do so in the coming weeks and months.
Nick Smith (Blaenau Gwent) (Lab)
Would not jobs and manufacturing in Wales be helped by a decent employment initiative? The future jobs fund has provided 500 jobs in Blaenau Gwent in recent years. It has had a terrific impact in an area with high unemployment of nearly 12%. Will the Minister or the Secretary of State please visit Blaenau Gwent? I invite them to come and find out about employment in my borough.
Chris Bryant (Rhondda) (Lab)
9. What recent discussions she has had with the Secretary of State for Defence on the proposed defence technical college at St Athan.
The Secretary of State for Wales (Mrs Cheryl Gillan)
This proposal is being considered as part of the strategic defence and security review, which was debated in the House on Monday. The review is due to be completed by October and I will ensure that the Secretary of State for Defence is made fully aware of the importance of our armed forces to Wales.
Chris Bryant
I do not feel sorry for the right hon. Lady; I welcome her wholeheartedly to her post. However, she gave a rather partisan answer to the earlier question about the defence technical college in St Athan, and I urge her to recognise that this issue has involved a cross-party alliance in Wales. All the political parties in Wales have been supporting it, so will she meet a cross-party group of MPs so that they may put the arguments strongly? This is about protecting our armed forces, particularly the soldiers from Wales, who deserve the best training they can possibly get.
Mrs Gillan
I congratulate the hon. Gentleman on having raised this matter not once but three times in the past week or so. I have read the replies to him from both the Secretary of State for Defence and the Prime Minister. The Prime Minister said:
“Everyone who has spent time in south Wales with the military knows that there is an incredibly strong case for the St Athan defence training establishment.”—[Official Report, 2 June 2010; Vol. 510, c. 430.]
I would be delighted to meet a cross-party group to discuss the future of St Athan. The hon. Gentleman will know that it was one of the first things that I signed up to when I was appointed as shadow Secretary of State for Wales. I will not demur from that support.
Mr Peter Bone (Wellingborough) (Con)
10. What her most recent estimate is of the level of public expenditure per capita in Wales in 2010-11.
The Parliamentary Under-Secretary of State for Wales (Mr David Jones)
The latest public expenditure statistical analysis published by the Treasury in April included data up to 2008-09, in which identifiable public expenditure per head on services for Wales was £9,209 while the UK average was £8,206.
Mr Jones
My hon. Friend is entirely right. The former Government seemed to regard it as a matter of success that they spent money that the country could not afford. We recognise the need for Wales to be properly funded, but yesterday’s Budget statement provides a firm foundation for good-quality jobs in Wales.
Kevin Brennan (Cardiff West) (Lab)
May I join the Secretary of State in paying tribute to Lord Walker? I do so genuinely, but I am led to reflect on the fact that, since 1987, the Conservative party has not had a shadow Secretary of State or Secretary of State who represented a Welsh seat.
On the issue of law-making powers for the Welsh Assembly: after the boundary changes, what is the Secretary of State’s opinion of how many Members the Assembly ought to have?
Lisa Nandy (Wigan) (Lab)
Q1. If he will list his official engagements for Wednesday 23 June.
The Prime Minister (Mr David Cameron)
I am sure that the whole House will wish to join me in paying tribute to Marine Paul Warren from 40 Commando Royal Marines, who died on Monday, and to the member of 40 Commando Royal Marines who died yesterday. We should constantly remember, and show our support for, the services and sacrifices made on our behalf by our armed forces and their families.
This morning I had meetings with ministerial colleagues and others. In addition to my duties in this House, I shall have further such meetings later today.
Lisa Nandy
The coalfield communities regeneration programme breathed new life into places such as Wigan after the devastation caused by the pit closures in the 1980s. Michael Clapham’s review is very welcome, but the decision to freeze the funding will devastate our economy all over again. Can the Prime Minister reassure my constituents that he is not simply seeking to close down the coalfields all over again?
The Prime Minister
Of course I can give the hon. Lady that assurance. Let me first of all congratulate her on her election to this House, and say how much we want to make sure, in spite of the difficult decisions that we have had to make in the Budget, that we go on helping and regenerating communities that face difficulties. I have visited the site in Wigan where the new Lads and Girls club is to be built. That is the result of excellent joint work between the private and public sectors, and we need many more projects like it. We will have more to say about that next week.
Simon Hart (Carmarthen West and South Pembrokeshire) (Con)
Q2. The Prime Minister will be aware of the vital contribution of the 23,000 Territorial Army and other reservists who have fought in Afghanistan, Iraq and the Balkans in the last six years. So far, 22 have lost their lives in those operations, and the ones who survive are twice as likely to get post-traumatic stress disorder than their regular counterparts. What recognition and support can my right hon. Friend give to the thousands of employers who routinely allow staff to volunteer, train and engage in reservist activity and who, by doing so, are critical to our military success in those operations?
The Prime Minister
My hon. Friend is absolutely right to raise the contribution that our Territorial Army plays in serving our country. He is also right to remind us how many people have served in Iraq and Afghanistan. There are some 600 volunteer reservists serving today. Standing up for our armed forces is not just a Government responsibility: it is a social responsibility, and something that we should all do. We should pay tribute to those businesses that help people to volunteer and take part. We should remember their service in doing that as well.
Ms Harriet Harman (Camberwell and Peckham) (Lab)
May I join the Prime Minister in paying tribute to Marine Paul Warren from 40 Commando Royal Marines, who died on Monday, and to the member of 40 Commando Royal Marines who died yesterday? They fought with bravery and they died in the service of their country.
The Chancellor announced yesterday that the Government will bring forward relinking the basic state pension to earnings to 2011 rather than 2012. Can the Prime Minister tell us how much money the Treasury has set aside to pay for that next year?
The Prime Minister
Actually, what the Chancellor did yesterday was more complex than that. He said—[Interruption.] This is an extremely important point, and hon. Members will want to listen. We have a triple lock in place to make sure that the pension upgrade is at the highest level possible. Next year, therefore, because of what we expect will happen with the retail prices index, the pension will be upgraded and increased along with it. When the right hon. and learned Lady gets to the Dispatch Box the next time, will she confirm that Labour’s plans were to uprate benefits by less than the consumer price index?
Ms Harman
There was nothing complicated at all about the question, but it was one that the Prime Minister did not seem to want to answer. The answer is that the Government have not set aside a single penny for that big promise to pensioners. Next year prices are due to go up more than earnings, so bringing forward the earnings link by a year does not give pensioners anything extra. But although pensioners get nothing from that change we all know they will pay more in VAT. The Chancellor promised to provide help for pensioners. I am sure that pensioners, including those in the Southwark Pensioners Action Group, or SPAG, which the hon. Member for Bermondsey and Old Southwark (Simon Hughes), knows well, will want to know: are pensioners better off or worse off as a result of the Budget?
The Prime Minister
I have to say to the right hon. and learned Lady that there is a danger in asking the second question without having listened to the first answer. The first answer is that the pension will be uprated by RPI, which is likely to be higher than earnings next year. In terms of how much money we are putting into the state pension system—[Interruption.] How much, they ask? We are putting in £1 billion over the Parliament—£1 billion. What a contrast. In 13 years, Labour never linked the pension back to earnings. We have done it in two months.
Ms Harman
The Prime Minister is not being straight about this. We know that there will be no increase in the pension from linking it with earnings a year early. A pensioner will not benefit from the cut in tax from raising the personal allowance either, because they do not get that if they are over 65, but they will pay more VAT. The Chancellor promised to help pensioners. Will the Prime Minister not admit that pensioners will be worse off under his Budget?
The Prime Minister
Perhaps I could recommend to the right hon. and learned Lady the Budget Red Book, although in her case I suspect it is the unread book. If she looks at page 41, she will see £1 billion going into the state pension system in this Parliament. What a contrast. We all remember the 75p increase for pensioners. Under our triple lock system, that can never happen again.
Ms Harman
Page 41, table 2.1, item 48 states:
“Basic State Pension: introduce triple guarantee”.
Money set aside: zero. The Prime Minister is not being straight about his promise to pensioners.
Can I ask the Prime Minister about families with children? Families with children, with an income of less than £40,000, may be breathing a sigh of relief that they still have their tax credits, as that was on the news last night. But is it right? Can he confirm that—as he promised in the election—families on less than £40,000 will not lose their tax credit?
The Prime Minister
What we are doing is making sure that the less well-off families get the most money. What a contrast again. Since 2004, child poverty went up by 100,000 under a Labour Government. In this Budget, child poverty does not go up by a single family.
Ms Harman
Once again, the Prime Minister is not answering the question. The truth is that, despite the Chancellor’s promise, the Budget small print shows big cuts in eligibility for tax credit. The Prime Minister promised that no family on less than £40,000 a year would lose child tax credit. Will he admit that that is not the case? Will he admit that there are families on a joint income of £30,000 who will lose all their tax credits?
The Prime Minister
The point that the right hon. and learned Lady has got to address is who left us in this mess. Who left a budget deficit of £155 billion, with absolutely no proposals to deal with it? Who put forward—[Interruption.]
Mr Speaker
Order. I apologise for interrupting the Prime Minister. This level of barracking is unacceptable, and I can tell the House that it is detested by the electorate. It must stop.
The Prime Minister
Thank you, Mr Speaker.
Who put forward £50 billion of cuts, without outlining a single penny piece? The whole country can see what is happening here: one party put us into this mess; two parties are working together to get us out of it.
Ms Harman
I think that what the electorate detest is broken promises, and people will want to know how the right hon. Gentleman’s Budget will affect them. He was not straight with pensioners. He was not straight with families. He was not straight on VAT. When the Chancellor got up to present his Budget, he proclaimed:
“I am not going to hide hard choices…in the small print of the Budget documents. The...public are going to hear them straight from me, here” —[Official Report, 22 June 2010; Vol. 512, c. 167.]
Is not the truth that that was his first promise and that he broke it even before he sat down?
The Prime Minister
The right hon. and learned Lady talks about broken promises. We remember, “No more boom and bust.” What happened to that promise? We remember, “Prudence with a purpose.” What happened to that one? We remember, “We’ll protect the poorest,” when Labour took away the 10p tax rate. The fact is that the Labour party has got absolutely nothing to say about the biggest problem facing this country, which is the massive budget deficit. It might be adopting Greekonomics, but we are sorting out the problem.
Paul Maynard (Blackpool North and Cleveleys) (Con)
Given the size of the structural deficit that we have inherited, how many apologies has the Prime Minister received from Opposition Members for what they have left behind?
The Prime Minister
First, may I welcome my hon. Friend, who, I know, will speak with great passion for his town of Blackpool? We should congratulate it on its footballing success recently. On that note, I am sure that the whole House will want to show its support—[Interruption] yes, including all Members—for the England team this afternoon in their key game.
I have not yet received a single apology for the appalling mess that we have been left, but at some stage, the Labour party will have to wake up and realise what a mess it made of the British economy.
Ms Karen Buck (Westminster North) (Lab)
Q3. Will there be fewer police officers at the end of this Parliament compared with the number that we have today?
The Prime Minister
What we want to do— [Interruption.] Opposition Members have got to start getting serious about the task that we face. We want to do everything that we can to keep police officers on the streets, to have money going into our schools and to keep up spending on our hospitals, and the only way that we are going to be able to do it is if we deal with the problems of excessive welfare spending. So if hon. Members want to see police on the streets and if they want to see well-funded schools, they have got to back us on housing benefit and on welfare reform. That is the way that we can keep spending up.
Christopher Pincher (Tamworth) (Con)
Will the Prime Minister join me in congratulating the Daily Mirror on highlighting the terrible 172% increase in unemployment in Tamworth during the recession? Further, will he encourage that august journal to place the responsibility for that grizzly legacy squarely where it lies?
The Prime Minister
I thank my hon. Friend for his question. I think that I am right in saying that it was in Tamworth that I came face to face with the Daily Mirror chicken, which was one of the most enjoyable episodes of the election. He is right about the unemployment figures, and one of the most important things that we have got to do is to introduce our work programme, which will be the biggest, boldest scheme in the history of this country to get people back to work. That is what needs to be done, and that is the best route out of poverty.
Chris Evans (Islwyn) (Lab/Co-op)
Q4. A 25% cut in public spending in Wales, together with a hike in VAT, will hit Wales especially hard. Does the Prime Minister now accept that he and his Liberal friends have let Wales down?
The Prime Minister
I do not accept that at all. The worst thing for Wales would be to continue with the budget deficit and rising debt, and to see our economy slide down. The choice in terms of the Budget is the road to recovery from this party, or the road to ruin offered by the Labour party.
John Thurso (Caithness, Sutherland and Easter Ross) (LD)
Is the Prime Minister aware of the interesting progress in the European project for fusion research, of the opportunity for a materials testing facility to come to the United Kingdom, and of the suitability of Dounreay to deliver that work? Will the Government support such an application?
The Prime Minister
My hon. Friend speaks with great knowledge about scientific issues. It is important that we lead in such areas. His constituency, with Dounreay, obviously has a huge technical edge, so I shall take his representations seriously.
Pamela Nash (Airdrie and Shotts) (Lab)
Q5. I am sure that the Prime Minister is aware of the send my friend to school campaign, in which my young constituents at Victoria primary school in Airdrie are involved and about which they will be writing to him this week. The campaign aims to ensure that the Government direct the £8.5 billion that was committed by the previous Labour Government towards universal primary education by 2015. The matter will be discussed on 7 July at the education summit in South Africa, which is tied in with the World cup. Has the Prime Minister personally spoken to President Zuma and other African leaders about their pledges, and will he confirm that a review of the Department for International Development’s funding will not compromise our pledge?
The Prime Minister
First, I welcome the hon. Lady following her election; I think that I am right in saying that she is the youngest Member of the House of Commons. She is quite right to talk about the millennium development goals and aid spending. It is good that it is common cause across the House of Commons that, despite the difficult decisions that we will have to take, we should meet the target of 0.7% of gross national income. We are committed to doing that, which means that we can continue to support the poorest people in the poorest countries. We will be addressing such issues this weekend at the G8 in Canada.
Graham Evans (Weaver Vale) (Con)
Q6. Yesterday, there was support on both sides of the House for raising the income tax threshold by £1,000. Does the Prime Minister agree that a Government who do that have to explain where the money is coming from?
The Prime Minister
My hon. Friend makes a good point. I noticed yesterday that everyone in the House supported the idea of raising the income tax threshold so that we take 880,000 people out of tax altogether. If people are going to support such a pledge, which could cost as much as £4 billion, they have to say where the money is coming from, but so far we have not heard about one penny piece of one saving from any Labour Front Bencher. In terms of Labour’s election for leader, it does not matter who that is, because they are not giving any figures to show where they would find cuts. Until they do that, they simply will not be taken seriously.
Mr David Crausby (Bolton North East) (Lab)
Q7. The building work for the new £20 million maternity supercentre in Bolton is pretty well finished, but may I be assured that the Government’s decision to review the making it better programme in Greater Manchester will not affect the expansion, and particularly the funding, of Bolton’s Princess Anne maternity unit?
The Prime Minister
Absolutely nobody is proposing closing the new unit that has been set up. The hon. Gentleman will know that decisions that were taken about Greater Manchester in the previous Parliament caused a huge amount of pain in that vital part of our country. My right hon. Friend the Secretary of State for Health is asking the NHS to ensure that we meet the needs of patients locally, instead of just conducting top-down reviews that lead to the closure of much loved units.
Andrew Selous (South West Bedfordshire) (Con)
Will my right hon. Friend tell the House what discussions he has held with the US Administration to ensure that BP remains a strong and viable company?
The Prime Minister
I am grateful to my hon. Friend for raising that point. I have had two discussions with President Obama so far, including a very good telephone call last night. I made the point, especially in the earlier phone call, that of course BP wants to pay for the clean up and to stop the oil gushing into the gulf, and recognises that it must pay money in respect of fishermen and others who have lost their livelihoods, but we want to ensure that the company remains strong and stable for not only our benefit, but the benefit of the United States. I believe that 40% of the company’s shareholders are in the US, while 39% are in the UK, and it employs more people in the US than it does in the UK, so it is in all our interests that it is strong and secure in the future.
Helen Goodman (Bishop Auckland) (Lab)
Q8. Yesterday, the Chancellor of the Exchequer told the House that, in April 2012, there would be no more children living in poverty than there are today. Unfortunately, two thirds of the cuts in tax credits and benefits come after that date. Will the Prime Minister give the House his forecast of the number of children who will be living in poverty by the end of the Parliament?
The Prime Minister
What I would say to the hon. Lady is that, for the first time in any Budget—certainly since I have been in the House—we have actually published the distributional tables on what happens to income. Labour never did that; we have done it for 2012-13. As for what happens towards the end of the Parliament, I am pleased to say that there will be at least another three coalition Budgets, which we look forward to introducing, to make sure that we go on to protect the poorest in our country.
Mr Peter Bone (Wellingborough) (Con)
In the closing days of the previous Parliament, Anthony Steen trafficked through the House the Anti-Slavery Day Act 2010 to highlight the problems of human trafficking. The Government are required to announce a day for anti-slavery day. What progress has been made on that front?
The Prime Minister
My hon. Friend makes a very good point. I admired the work that Anthony Steen did. We have not set a date and he gives me an important reminder that I must get back to my office and make sure that we do.
David Cairns (Inverclyde) (Lab)
Q9. For more than 20 years, Sky News has provided an excellent source of impartial news and analysis. Can the Prime Minister give a guarantee that, whoever ends up owning BSkyB, it will not be allowed to turn into Fox News, and that there is no room here for shouty, reactionary propaganda passing itself off as fair and balanced news?
The Prime Minister
The very idea of shouty, reactionary propaganda being passed in the House of Commons is an appalling thought. As I am sure we all recognise, these are matters for my right hon. Friend the Secretary of State for Business, Innovation and Skills, who will be looking at them very closely.
Matthew Hancock (West Suffolk) (Con)
Can the Prime Minister confirm that, until yesterday’s Budget, the benefits for some of the poorest in society were to be increased at a rate less than inflation, and therefore cut in real terms?
The Prime Minister
My hon. Friend makes an excellent point. The Labour Government’s plans were to increase benefits by less than consumer price inflation next year. They left a £300 million—they do not know this, the dupes behind the Front Bench—[Interruption.] I think dupes is an accurate description of what I am looking at. There was a £300 million black hole, and you do not have to be a “Star Trek” fan to know that when you are in a black hole, you should stop digging.
Fiona Mactaggart (Slough) (Lab)
Q10. In the interests of informing the dupes behind either Front Bench, and in response to his answer to my hon. Friend the Member for Bishop Auckland (Helen Goodman), will the Prime Minister agree to publish the tables for the years following the one that has been published in the Red Book, which is very welcome, so that we can advise him on how to improve the impact of his policies on child poverty?
The Prime Minister
What a pity the hon. Lady never made that point in 13 years of Government. Where were the distributional tables in the Budget after Budget that we—the poor dupes who were sitting at the back—had to listen to the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown) give over and over again? We have published the table for the first time. Between now and the years the hon. Lady talks about, there will be further Budgets, where we will make further progress in helping the poorest families in our country.
Dr Julian Huppert (Cambridge) (LD)
Does the Prime Minister agree with several generals, many members of the public and me that Trident should be included in the strategic defence and security review? Does he agree that if there is a case for retaining it, that would come out in the review; and if there is not a case, it should not be kept?
The Prime Minister
My hon. Friend will know that that matter was carefully negotiated in the coalition agreement between our two parties. My view is clear: Britain should retain the nuclear deterrent and we should always keep that insurance policy against great danger. Although I think that there is a case for looking at the costs of the Trident system and seeing how we can bear down on them, I do not believe that we should have the wider review that he suggests.
Dr William McCrea (South Antrim) (DUP)
Q11. Yesterday, we were told that resolute action was necessary to deal decisively with our country’s debt. Does the Prime Minister believe that it is acceptable that Members’ allowances are being paid to Members of the House who neither take their seats nor participate in the work of the House? When will that injustice be remedied, as he promised before the election?
The Prime Minister
The hon. Gentleman makes a good point. My views about this issue are on the record, and they have not changed. I would like to see if we can make the argument. There is not a case for Sinn Fein Members not to take their seats. I think that at the moment we let them off the hook, so I would like to re-examine the argument and see if we can find a new way of doing this.
Guy Opperman (Hexham) (Con)
Q12. Saturday is Armed Forces day. In my constituency of Hexham in Northumberland we have hundreds of Royal Artillery servicemen who have recently returned from Afghanistan and will receive the freedom of the town. When they are off duty, they will receive multiple discounts from dozens of stores, restaurants and pubs that are doing their bit locally. Does the Prime Minister agree that it is everyone’s duty, not just in the House but all around the country, to go the extra mile and show the gratitude that we all have for our brave troops?
The Prime Minister
I very much agree with my hon. Friend. As I said earlier, this is something that the whole country needs to do, not just the Government. Yes, we have our responsibilities to make sure that we are living up to the military covenant and are doing all that we can for our armed forces and their families, but it is something that communities, individuals and businesses can do, too. I understand that in Hexham, there will be a nine-hour forces celebration. When those servicemen and women are off duty, there will be discounts, as he said, from restaurants and pubs, so I expect that it might get a bit lively, and I am sure that he will join in the fun.
Angus Robertson (Moray) (SNP)
A consequence of yesterday’s Budget and VAT rise is £26.5 million of new overheads for the NHS in Scotland. Having promised to ring-fence health spending, will the Treasury now cover those costs, or will this be another broken promise, just like Lib Dem opposition to a VAT rise before the election?
The Prime Minister
Of course, our action on national insurance contributions has saved the NHS money, which would not be available under a Labour Government. The point I would make is that that benefits Scotland. The fact that we are protecting the NHS and NHS spending means that money will be available in Scotland as well. The shadow Health Secretary has said that health should not be protected, and that the NHS should be cut. That is now, take note, the official position. The Leader of the Opposition is nodding—cutting the NHS is now official Labour policy.
Dr Julian Lewis (New Forest East) (Con)
Q13. What the military purpose is of routine foot and vehicle patrols in Afghanistan.
The Prime Minister
I thank my hon. Friend for his question. We are conducting a counter-insurgency operation in Afghanistan. He asked specifically about the military purpose of routine foot and vehicle patrols in Afghanistan. If we are going to win the counter-insurgency and succeed in what is called “war amongst the people”, we have to be among them, protecting them from the insurgents. That is how we are going to create a more stable and peaceful Afghanistan, from which we will be able to return, leaving the Afghan forces in control.
Dr Lewis
Does the Prime Minister accept that there are other ways of fighting counter-insurgencies that do not involve sending out uniformed personnel along predictable routes, day after day, to be sniped at and blown up? Will he request that his military advisers focus on long-term strategies that could achieve our strategic aims without having to pay such an unnecessarily high price?
The Prime Minister
I know that my hon. Friend takes a close interest in these matters, and I have arranged for him to meet senior officials and military advisers, so that he can explore his ideas with them. All that I would say is that the team that President Obama has put in place, and the team that we have in place of military and civilian leaders, have brought great impetus to the campaign. It is difficult to see, if we are trying to fight a counter-insurgency, how we can do so without having a number of active patrols to protect the people from the insurgents.
Mr Speaker
Order. I gently remind the House that this is a closed question on Afghanistan. Does anybody wish to come in? No. I call Mr Jonathan Evans.
Jonathan Evans (Cardiff North) (Con)
Q14. Bearing in mind the Opposition’s claim that in Europe, Britain is now isolated, will my right hon. Friend indicate how on earth he managed to secure both French and German agreement to the announcement in relation to the bank levy in the Budget yesterday?
The Prime Minister
My hon. Friend makes an excellent point. In the Budget yesterday, my right hon. Friend the Chancellor announced unity between the French, the Germans and the British on introducing a bank levy. The one group of people who are isolated, and who say that we have to wait for the rest of the world before we can ask our banks to make a proper contribution, are the Opposition. Once again, they have no proposals to fill the enormous black hole that the Government are getting to grips with.
Mrs Anne McGuire (Stirling) (Lab)
The Office for National Statistics reported that while the richest 10% spent £1 in every £25 of their income on VAT, the poorest 10% spent £1 in every £7 of their income on VAT. How, then, can the Prime Minister justify his oft-repeated refrain that we are all in this together?
The Prime Minister
What I would say to the right hon. Lady—it is an important point and the Red Book sets it out—is that the richest 10% will pay in cash terms 15 times as much in VAT as the poorest 10%. The important point to take into account and look at is the Budget as a whole. In the Budget as a whole, we can see that the richest pay the most both in cash terms and as a percentage of their income. What we have done, by massively increasing child tax credits, is to ensure that there is no increase in child poverty. What a contrast that is with the figures since 2004. The Labour party put up child poverty by 100,000. That is the difference.