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Commons ChamberRead Hansard Text Read Debate Ministerial Extracts
Mr Ian Davidson (Glasgow South West) (Lab/Co-op)
1. When he plans to respond to the fifth report from the Scottish Affairs Committee on the Crown Estate, HC 889.
The Secretary of State for Scotland (Mr Alistair Carmichael)
I welcome the Committee’s continued interest in the Crown Estate’s activities in Scotland and the publication of its latest report. I am working on the UK Government response with colleagues in HM Treasury and we will publish it as soon as possible.
Mr Davidson
Does the Secretary of State agree that this is indeed a fine report, which should be accepted in full by the Government? In particular, does he accept the proposal that the devolution of powers from London should be not simply to the black hole that is Edinburgh, but to the local communities and authorities of the highlands and islands of Scotland?
Mr Carmichael
I pay tribute to the hon. Gentleman because, under his stewardship, the Scottish Affairs Committee has become one of the most productive Committees in the House. He knows that I have a particular interest in this issue. He highlights one of the real challenges facing us. People in our island and coastal communities have seen power and influence systematically stripped away by the Scottish Government since they took power in 2007. I do not see any particular attraction in replacing a centralised system from London with a centralised system in Edinburgh.
Mr Alan Reid (Argyll and Bute) (LD)
A social enterprise has bought the Ardroy outdoor education centre in my constituency, but it needs to acquire from the Crown Estate the rights to a sewage pipe over the foreshore. After months of legal correspondence and thousands of pounds of legal bills, the matter is still not sorted out. Will my right hon. Friend meet me to help resolve the problem?
Mr Carmichael
Unfortunately, my hon. Friend highlights a constituency case of the sort that has been all too familiar to me over the years. In fact, in many ways, it makes the case for the need for reform. I would be more than happy to meet him and his constituents and assist them in any way that is open to me.
Angus Robertson (Moray) (SNP)
It is now nearly three years since all three UK parties were resoundingly defeated by the Scottish National party. In those three years, there was plenty of time for the coalition Government and indeed the official Opposition to consider further devolution, including that advocated by the Scottish Affairs Committee. Will the Minister confirm whether they will or will not publish a comprehensive joint devolution proposal?
Mr Carmichael
The hon. Gentleman will get the Government’s response at the same time as everyone else, but he cannot get away from the fact that his Government in Edinburgh have systematically stripped power, influence and accountability away from island and coastal communities. They are not to be trusted with this.
Angus Robertson
The coalition parties and the official Opposition have spent the past three years expressing nothing but groundless, relentless negativity about the future of Scotland. They have dubbed it “project fear”. The Conservative party said that it had a line in the sand and that there would be no further devolution. The Labour party is proposing even less than a few years ago, and the Liberal Democrats are in favour of federalism in a lopsided model that will never ever work. Why should the electorate believe a single word of any of the three parties on the issue of devolution—
Mr Carmichael
It is not lost on the House that the hon. Gentleman’s question has absolutely nothing to do with the Crown Estate. My constituents and those of other hon. Members representing coastal and island communities will no doubt conclude that that is simply because his Government do not care about them.
Alison McGovern (Wirral South) (Lab)
2. What assessment he has made of the extent of the use of zero-hours contracts in Scotland.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
The Secretary of State for Business, Innovation and Skills recently concluded a consultation on zero-hours contracts with proposals on exclusivity clauses, transparency and guidance. A summary of consultation responses will be published in due course.
Alison McGovern
The Office for National Statistics has recently had to uprate massively the number of people it estimates are on zero-hours contracts right across the UK. Does the Minister agree that this is the wrong time to see a race to the bottom between UK nations on working standards for ordinary people, whether they live in Scotland, England, Wales or anywhere else?
David Mundell
I agree with the hon. Lady. She will know that a 670-page White Paper was produced by the SNP Scottish Government. On zero-hours contracts, as on everything else, it is very short on detail.
Ann McKechin (Glasgow North) (Lab)
Will the Minister explain what assessment has been made of Government procurement contracts in relation to zero-hours contracts and how we can encourage best practice?
David Mundell
The hon. Lady makes an important point. I will take that up with my colleagues in the Cabinet Office and write to her.
Margaret Curran (Glasgow East) (Lab)
Can the Minister tell the House how many people are employed on zero-hours contracts in Scotland?
David Mundell
The answer to that question has not changed since the hon. Lady asked it previously. She knows that there is no legal definition of zero-hours contracts.
Margaret Curran
Well, the House of Commons Library might take issue with that, because according to the Library, 46,000 people in Scotland are on zero-hours contracts and, in fact, it believes that that is an underestimate. Will the Minister join Labour in calling for an end to exploitative zero-hours contracts? Does he agree that, despite all the talk of recovery, there are still thousands and thousands of Scots on very low and insecure incomes? During the Budget process, has he been fighting in the interests of those Scots or, like the rest of the Tories, is he concerned only with those at the top?
David Mundell
It does not surprise me that the hon. Lady does not draw attention to the fact that, on the basis of statistics announced today, employment in Scotland increased by 15,000 over the quarter, and has increased by 79,000 over the year. The Scottish employment rate rose by 0.3%. The way out of poverty is work, and this Government are delivering jobs.
Dr Eilidh Whiteford (Banff and Buchan) (SNP)
3. What assessment he has made of the effect of the Government’s welfare reforms on levels of child poverty in Scotland.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
The Scottish Government child poverty strategy report was published in September 2013 and states that child poverty in Scotland is at its lowest level since 1994. Welfare reform will be subject to the normal policy review process in due course.
Dr Whiteford
I am appalled by the Minister’s complacency. He should be aware that more than half the children in poverty in Scotland have working parents, and that the Child Poverty Action Group estimates that 100,000 more children will be pushed into poverty as a consequence of welfare reform. Why do his Government think that it is okay to make children pay the price of austerity, and does he think that it is a price worth paying?
David Mundell
Each month, the hon. Lady raises welfare issues and plumbs new depths of hypocrisy. The Scottish Government produced a 670-page—[Interruption.]
Mr Speaker
Order. I am quite clear that the context in which the hon. Gentleman is using that term is not collective but individual and personal. [Interruption.] Order. I can handle the matter. The Minister will withdraw that term: it was directed at an individual, and it is inappropriate.
David Mundell
I withdraw unreservedly, Mr Speaker. The point I want to make is that the Scottish National party produced a 670-page White Paper on Scottish independence. How many mentions does it make of child poverty? One, on page 41.
Iain Stewart (Milton Keynes South) (Con)
Does my right hon. Friend agree that a good way of tackling child poverty in Scotland and England is to raise the personal tax allowance, which would target low earners? That is an effective way of increasing the household incomes of families at the bottom end of the income scale.
David Mundell
I absolutely agree with my hon. Friend. Since the coalition Government came to office, 2.2 million people in Scotland have seen their income tax bills reduced.
Lindsay Roy (Glenrothes) (Lab)
Will the Minister confirm what impact the imposition of the bedroom tax has had on child poverty in Scotland?
David Mundell
On the spare room subsidy, the hon. Gentleman is aware that the Government have introduced significant contributions in relation to discretionary housing payment. He knows as well that the Scottish Government have significant powers to contribute to any mitigation that they think is necessary.
Guy Opperman (Hexham) (Con)
Surely the best way to address child poverty is by increasing employment and changing education and skills so that young people in Scotland and England have the skills and aspirations to work their way out of child poverty.
David Mundell
My hon. Friend is exactly right, which is why I would have thought that even Opposition Members would welcome the fact that employment in Scotland has increased by 15,000 over the quarter, and that the Scots employment rate rose by 0.3%.
Mr Russell Brown (Dumfries and Galloway) (Lab)
Child poverty has long-lasting effects. By the age of 16, children receiving free school meals achieve significantly lower exam grades than their wealthier peers, and they leave school with fewer qualifications, which translates into lower earnings over the course of their working lives. Will the Minister speak with the Secretary of State for Work and Pensions and demand a proper start in life for all children, something that is threatened by this Government’s welfare reform programme?
David Mundell
I do not accept the claim that this Government are responsible for child poverty. I agree with the hon. Gentleman’s Dumfries and Galloway council colleague, Marion McCutcheon, who said that the only solution to child poverty is work. That is what this Government are delivering, with 15,000 more people in employment over the past quarter.
Dr Thérèse Coffey (Suffolk Coastal) (Con)
4. What assessment he has made of the financial benefits for Scotland of being part of the UK.
The Secretary of State for Scotland (Mr Alistair Carmichael)
As part of the United Kingdom, Scotland’s economy is doing well. We benefit from being part of the large, integrated UK domestic market.
Dr Coffey
I thank my right hon. Friend for that answer. He illustrates very clearly the benefits of Scotland staying in the United Kingdom, which will be good for everybody in this country. Having already mentioned the private sector recovery and jobs, does he agree that the Barnett formula provides a generous amount of public sector funding?
Mr Carmichael
Indeed. The Barnett formula has been part of Scotland’s political landscape for almost 40 years and delivers a good level of public spending for people in Scotland—in the region of £1,000 per head each year over the figure for the rest of the United Kingdom. That reflects Scotland’s distinctive needs. That is why it is here to stay.
Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
There is huge and growing inequality. Staggeringly, according to Oxfam, five families in the UK own as much as 20% of the population do. The Financial Times stated on Monday that the burden of austerity has fallen most heavily on the least well-off. Can the Secretary of State explain to the growing number of people using food banks in Scotland the benefits of being in the UK? They are not better together; they are at the food bank.
Mr Carmichael
No subject, apparently, is so complex or involved that it cannot be trivialised by the Scottish nationalists. The reasons people have to resort to using food banks are complex, and many of them have more to do with the difficulties they face in work than with being on benefits. I am quite prepared to listen to representations from every part of the House about what the Government can do, but frankly I do not expect to hear anything constructive from the hon. Gentleman.
Mr Charles Kennedy (Ross, Skye and Lochaber) (LD)
Does my right hon. Friend agree that there is more than a sense of irony about the fact that the devolution cause—to maintain but reform the United Kingdom—was based largely on the correct analysis that too many economic decisions were being concentrated here in London. Yet, now in Scotland, if we look at Highlands and Islands Enterprise and the Crofting Commission, to take just two examples, we see that too many economic decisions are being centred politically in Edinburgh? Does he agree that Scotland’s long-term financial benefit is in the UK, but that we also need a more devolved Scotland?
Mr Carmichael
Indeed. We see Scotland’s constitutional position as an evolving one. The experience to which my right hon. Friend points is exactly the same as that which I and my constituents see. Week in, week out, the Scottish Government take power and influence away from constituencies and communities such as ours, which know best what will work in growing their economies, and what we get is what people in Edinburgh think we need, rather than what we want.
Mr Speaker
I ask the Secretary of State to face the House so that we get the full benefit of his mellifluous tones.
Ian Murray (Edinburgh South) (Lab)
There are tens of thousands of financial services jobs in my constituency, and my constituents are getting increasingly upset by the uncertainty around the independence referendum and the fact that many financial institutions might leave Scotland. What can the Secretary of State say to my constituents to ensure them that those jobs will not only stay, but increase in the future?
Mr Carmichael
The best way to ensure that those jobs stay is to vote no on 18 September and ensure that Scotland remains part of the United Kingdom. In recent weeks we have seen a growing number of companies—Standard Life, Royal Bank of Scotland and Alliance Trust Ltd—explaining that, if Scotland was to become a foreign country, as good Scottish companies operating through the whole of the United Kingdom, they would be required to remove their headquarters from Scotland to the rest of the United Kingdom. That would not be good for Scotland’s economy.
Mel Stride (Central Devon) (Con)
5. What recent discussions he has had with the Scottish Government on the prospect of a currency union with an independent Scotland.
Andrew Bridgen (North West Leicestershire) (Con)
6. What recent discussions he has had with the Scottish Government on the prospect of a currency union with an independent Scotland.
Mark Menzies (Fylde) (Con)
8. What recent discussions he has had with the Scottish Government on the prospect of a currency union with an independent Scotland.
The Secretary of State for Scotland (Mr Alistair Carmichael)
I have not had any discussions with the Scottish Government about the prospect of a currency union. The Chancellor, the Chief Secretary to the Treasury and the shadow Chancellor have all said that there will not be a currency union. The only way to keep the pound is to stay in the United Kingdom.
Mel Stride
Alex Salmond claims that an independent Scotland will still use the pound. Given that there is no likelihood of a currency union between the remainder of the United Kingdom and any future independent Scotland and that Scotland would therefore not have the backing of the lender-of-last-resort facility of the Bank of England, does my right hon. Friend agree that such a path is disastrous for Scotland—particularly its financial and banking sector?
Mr Carmichael
Indeed. If Scotland made herself a foreign country to the rest of the United Kingdom, there would be no question of the Bank of England and the taxpayers who underpin it continuing to stand behind banks headquartered in that foreign country. That simply does not happen. As we have already explained, a number of financial services and banking companies north of the border have rightly identified that as a risk to their continued future governance.
Andrew Bridgen
Following the First Minister’s admission at the weekend that his own fiscal commission working group is looking at not only a plan B but a plan C, D, E and F, is it not the truth that the Scottish National party can offer no certainty for the people of Scotland about currency provision for an independent Scotland? They cannot keep the pound, because—
Mr Speaker
Order. The hon. Gentleman has had his say, but it did not remotely resemble a question.
Mr Carmichael
On currency, we started with a White Paper and we have now been given an alphabet soup. I cannot believe that the First Minister does not have a plan B; I cannot believe that, six months from an independence referendum about which he appears to be serious, he has not actually decided what that is going to be. What worries me is that he seems so reluctant to tell the people of Scotland.
Mark Menzies
The First Minister, Alex Salmond, has previously described the pound as a millstone around Scotland’s neck and insisted that it was sinking like a stone. Does my right hon. Friend know what has changed?
Mr Carmichael
My hon. Friend invites me to look into the workings of the First Minister’s mind—not a particularly edifying enterprise, and one that goes beyond even my ambition. My recollection is that when the First Minister made that remark, he wanted us to be independent in Europe. I cannot remember whether that was the time when we were going to be part of the arc of prosperity, but it seems to be all change these days. The truth of the matter is that the First Minister does not care about the pound or anything other than independence.
Stewart Hosie (Dundee East) (SNP)
On 29 January, the Financial Times reported that on independence, with £100 billion of sales, Scotland would be one of the top 35 exporting countries in the world. If the Secretary of State has his way—I am sure that he will not—when does he intend to run around to the good people of England explaining the impact on their currency when £100 billion of Scottish export sales are no longer receipted in sterling?
Mr Carmichael
The hon. Gentleman should listen to some of the experts. The Institute of Directors, for example, has said in terms, that the well rehearsed risks of a currency union far outweigh the problems of the sort of transaction costs that the hon. Gentleman is talking about. He needs to listen to the experts and tell us what he is going to do instead.
Sir Menzies Campbell (North East Fife) (LD)
Does it not tell us all we need to know about those arguing for independence that when the Governor of the Bank of England, in an impartial and carefully produced speech, draws attention to the reservations he has about a currency union, he is dismissed out of hand by the Scottish National party?
Mr Carmichael
In that respect, the Governor of the Bank of England is in very good company—he is with the President of the European Commission, the Prime Minister of Spain and the permanent secretary to the Treasury. The truth of the matter is that, day by day, bad news comes to those who want to remove us from the United Kingdom, and they are just not prepared to listen to it.
Mr William Bain (Glasgow North East) (Lab)
If and when the Secretary of State does speak to the First Minister, will he remind him that any attempt to use sterling informally without a central bank would mean that an independent Scotland would not meet the terms of entry to the European Union? What could be more damaging for jobs and growth in Scotland than that?
Mr Carmichael
The nationalists are always very keen on telling us about their vision. In fact, if we were to use sterling without the central bank in the Bank of England, the relationship between Scotland and the rest of the United Kingdom would be like that between Panama and the United States of America. That is not a vision; it is a nightmare.
Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)
The Minister will be aware that there is nothing more important in a pensions system than—[Interruption.]
Mr Speaker
Order. Perhaps the House can calm down and the hon. Gentleman can actually have the advantage of free speech, which is what this House is about.
Gregg McClymont
I am delighted by such a reception, Mr Speaker.
The Minister will be aware that nothing is more important as regards the certainty of a pensions system than clarity about the currency in which pensions are paid out and saved. Does he therefore agree that the lack of clarity from the Scottish nationalists about the currency that an independent Scotland would use is very damaging for Scots and their pensions?
Mr Carmichael
Indeed. The future of the pensions industry and the security of pensions for Scots post-independence is one of the biggest risks that comes from that lack of clarity. It is quite remarkable that six months out from the independence referendum date, we still do not know what the nationalists are offering us by way of a currency.
Mr Graham Allen (Nottingham North) (Lab)
7. What discussions he has had on the potential benefits of replicating aspects of the Scottish devolution model in England; and if he will make a statement.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
The devolution settlement is designed to meet the needs and wishes of the people of Scotland. This Government are committed to devolving power across the United Kingdom to the most appropriate level, taking account of local need. In England, we are achieving this in many ways, including the city deals programme in which Nottingham is a participant.
Mr Allen
A lasting democratic settlement in the UK must be based on the twin principles of union and devolution. Does the Minister share my view that separatism will be weaker and devolution will be stronger and more believable, not least to the Scottish people, if its benefits are spread to England too?
David Mundell
This Government are committed to devolution within England, and the hon. Gentleman is a prominent advocate of that. He recognises, as I do, that independence in Scotland is the end of devolution there.
Tim Farron (Westmorland and Lonsdale) (LD)
Does my right hon. Friend agree that devolution should absolutely take place in England, but it should be chosen by the people of its regions and not imposed by central Government as it was by the previous Labour Deputy Prime Minister?
David Mundell
I agree that the form that devolution takes within England—and, indeed, within the rest of the United Kingdom outwith Scotland—is a matter for the people of the rest of the United Kingdom.
Pete Wishart (Perth and North Perthshire) (SNP)
There are, of course, new proposed models of devolution on offer. Yesterday we had Labour’s devo-dog’s breakfast as an offer to the Scottish people. Does the Minister find anything attractive in Labour’s chaotic plans? Will they form the basis of the joint proposition, and if not, why not?
David Mundell
What we know about the SNP’s position is that it opposes devolution to Scotland and devolution within Scotland with its centralist agenda.
Graeme Morrice (Livingston) (Lab)
9. What assessment he has made of the potential effect of Scottish independence on investment in the North sea oil industry.
The Secretary of State for Scotland (Mr Alistair Carmichael)
We have already heard from senior business figures that independence presents risk for investment in the North sea oil industry. The sector is facing new challenges, and the United Kingdom offers the strongest basis to unlock the investment needed and ensure that we maximise its potential in future.
Graeme Morrice
The Secretary of State will be aware that the Scottish Government’s own figures show that oil revenues dropped by £4.4 billion last year. Does he agree, therefore, that the figures serve to demonstrate the weakness of basing the economic argument for a separate Scotland on unstable oil revenues?
Mr Carmichael
The figures illustrate perfectly the opportunities that come to Scotland from being part of the United Kingdom. For an economy that is highly dependent on offshore oil and gas, the size of the UK economy offers us the opportunity to absorb the peaks and troughs that are inevitably part of that commodity.
Mrs Cheryl Gillan (Chesham and Amersham) (Con)
Q1. If he will list his official engagements for Wednesday 19 March.
The Prime Minister (Mr David Cameron)
I am sure that the whole House will wish to join me in paying tribute to Tony Benn, who died last week. He made many memorable speeches in this House, and alongside a record of ministerial, parliamentary and public service, he was also a great writer, a great diarist and a great campaigner, no matter whether one agreed with his views or not. He will be missed by both sides of the House, and our thoughts are with the right hon. Member for Leeds Central (Hilary Benn) and other members of his family at this time.
I am sure that the House will also join me in paying tribute to the fantastic Team GB winter Paralympics team, following its great success at the Sochi games. Special congratulations must go to Kelly Gallagher, who won our first ever gold medal at the winter Paralympics, and Jade Etherington, who is now our most successful winter Paralympian, with four medals.
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.
Mrs Gillan
I am sure that the whole House will want to be associated with the remarks made by the Prime Minister today about Tony Benn, and his congratulations to the Paralympics team. The Paralympics started, of course, in Buckinghamshire.
Today, unemployment has fallen by 63,000, with youth and long-term unemployment also falling, and that has been evident in Chesham and Amersham, where we have seen growth in the private sector continue. Does my right hon. Friend agree that we must sustain this growth by continuing to tackle the deficit and support industry, and continue with our long-term economic plan?
The Prime Minister
My right hon. Friend is absolutely right about Buckinghamshire’s link with the Paralympic games. The flame from Stoke Mandeville came to No. 10 Downing street recently. She is also absolutely right about the unemployment figures, which show employment going up and unemployment coming down, a record number of people in work in our country, a record number of women in work in our country, and youth unemployment coming down too. What is particularly remarkable over the last quarter is that private sector employment has gone up by 118,000 and public sector employment has gone down by just 13,000, so 10 times more jobs have been created in the private sector. The important thing is what that means for Britain’s families. For millions of people, it means a pay packet, the chance of work, the chance of dignity, the chance of stability and security, and I hope it will be welcomed across the House.
Edward Miliband (Doncaster North) (Lab)
Let me begin by joining the Prime Minister in paying tribute to Tony Benn. The death of Tony Benn represents the loss of an iconic figure of our age. He will be remembered as a champion of the powerless and a great parliamentarian who defended the rights of Back Benchers in this House against the Executive, whichever Government they came from. He spoke his mind and he spoke up for his values. Everyone knew where he stood and what he stood for, and that is why he won respect from all Members of the House. All our condolences go to his children, Stephen, Hilary, Melissa and Joshua, and to his wider family. In their different ways, they take forward what he taught as a father, a socialist and as someone of great decency.
I also want to join the Prime Minister in paying tribute to the fantastic Team GB winter Paralympics team, following its great success in Sochi. In particular, special congratulations go to Kelly Gallagher and Jade Etherington.
This weekend we saw a referendum in Crimea take place in the shadow of Russian military intervention in Ukraine. Does the Prime Minister agree that the referendum was illegal, illegitimate and in direct violation of the terms of the Ukrainian constitution? Does he also share my deep concern following the news that a Ukrainian serviceman was shot and killed at a military base in Crimea yesterday?
The Prime Minister
The right hon. Gentleman is absolutely correct to say that the referendum in Crimea is illegitimate and illegal. It was spatchcocked together in 10 days and held at the point of a Russian Kalashnikov. This cannot be accepted or legitimised by the international community.
We should be absolutely clear about what has happened: it is the annexation, effectively, of one country’s territory by another country. We must also be absolutely clear about our interest, which is to see a rules-based international system where countries obey the rules. If we turn away from this crisis and do not act, we will pay a very high price in the longer term. We should be clear that this referendum is illegitimate, we must be clear that consequences must follow and we should work with our European partners and the United States for a strong, consistent and robust response.
Edward Miliband
I thank the Prime Minister for that answer and would like to ask him about the meetings that are coming up. The White House has indicated that its sanctions will be expanded, and I am sure the whole House will support the idea that the list of Ukrainian and Russian officials targeted by asset freezes and travel bans will also be extended at the EU Council meeting tomorrow. Will the Prime Minister tell the House the circumstances in which he would also support additional, wider economic and trade sanctions on the Russian Federation?
The Prime Minister
As we discussed previously in the House, the European Union set out some very clear triggers. We said that if the Russians did not take part in a contact group with the Ukrainian Government to take forward discussions, asset freezes and travel bans should follow. Those were put in place at the Foreign Affairs Council on Monday, and I believe further action on that front should be taken at the European Council of Ministers, which I will take part in on Thursday.
I also think we should be responding to the fact of this annexation. We said that if there is further action to destabilise Ukraine—and this annexation is that action—further consequences need to follow. We need to set that out on Thursday, in concert with our European partners. At the same time, we need to put down a very clear warning that if there is further destabilisation—for instance, going into eastern Ukraine in any way—we will move to a position of the sorts of economic sanctions we discussed in the House last week.
Edward Miliband
The Prime Minister should know that he will have the support of Members on this side of the House for the toughest possible diplomatic and economic measures against the Russian Federation, given the totally illegitimate action it has taken.
I also welcome yesterday’s announcement that the G7 allies will gather next week at The Hague. Given Russia’s actions, it seems inconceivable that it can remain in the G8, so does the Prime Minister now agree that a meeting of the G8 should go further and explicitly decide to suspend Russia from the group of G8 advanced economies?
The Prime Minister
I was one of the first people to say that I thought it was unthinkable for the G8 to go ahead as planned. We were one of the first countries to suspend all preparations for that G8 and I strongly support the meeting of G7 countries that will take place on Monday. It is important that we move together with our allies and partners, and we should be discussing whether or not to expel Russia permanently from the G8 if further steps are taken. That is the meeting we will have on Monday and I think that is the right way to proceed.
Dr Julian Huppert (Cambridge) (LD)
Q2. May I add a few words about Tony Benn? He was a great man and it was my pleasure to work with one of his sons, Stephen, for a number of years on science policy.Lifting the income tax threshold to £10,000 so far has lifted 2.7 million poorly paid people out of paying any income tax, making a difference to them. Is the Prime Minister pleased that he abandoned his pre-election objection to that and that he is implementing an excellent Lib Dem policy?
The Prime Minister
The hon. Gentleman brings the House together in his usual way. What I am sure we can agree on is that it has been an excellent move by a Conservative Chancellor in a coalition Government to make sure that you do not pay tax on the first £10,000 of income you earn. That benefits people earning all the way up to £100,000. It is worth, so far, more than £700 to a typical income tax payer and it is highly worth while, and I look forward to hearing what the Chancellor has to say.
Sir Gerald Kaufman (Manchester, Gorton) (Lab)
Is the right hon. Gentleman aware that this week I received from a Palestinian friend an e-mail telling me that the Israelis assassinated a friend in his house and that
“another brother of a friend has been shot dead by the army. So we spent our time from one funeral to another”?
When the right hon. Gentleman was in Israel last week, did he raise with Netanyahu this constant stream of killing of innocent Palestinians by the Israelis, and what is he going to do about it?
The Prime Minister
I did not raise that specific case, which the right hon. Gentleman quite rightly raises in the House today, but I did raise with the Israeli Prime Minister the importance of how the Israelis behave in the west bank and elsewhere, and I raised the issue of settlements, which I believe are unacceptable and need to stop.
I also strongly supported both the Israeli Prime Minister and the Palestinian President in their efforts to find a peace. There is a prospect and an opportunity now, because the Americans are leading a set of talks that could lead to a framework document being agreed, and it is in everyone’s interest to put all the pressure we can on both the participants to take part and to get on with these negotiations, which I believe would mean so much to ordinary Israelis, ordinary Palestinians and, indeed, the rest of us.
Andrew Stephenson (Pendle) (Con)
Q3. Unemployment in Pendle has now fallen over the past 12 months from 4.9% down to 3.8%, helped by a resurgence in British manufacturing. Compared with the 1.8 million manufacturing jobs lost under the previous Labour Government, would our Prime Minister agree that our long-term economic plan is delivering for the north of England?
The Prime Minister
My hon. Friend makes an important point, which is that we want to have a balanced recovery: we want to see growth and employment right across the country. It is worth noting that since 2010, 80% of the rise in private sector employment has taken place outside London. The unemployment rate in the north-west, where my hon. Friend has his seat, is lower than it is in London. We are beginning to see a balanced recovery, but we have got to do everything we can—backing apprenticeships, backing industry—to make sure that continues.
Yasmin Qureshi (Bolton South East) (Lab)
Primodos was a drug given to women to determine pregnancy in the 1960s and 1970s. Its potency is 18 times that of morning after pills. As a result, thousands and thousands of babies were born with deformities. Up to now, there has never been a public inquiry or compensation for the victims. Will the Prime Minister meet me, my constituent Nicola Williams and a representative of the victims’ association to discuss this?
The Prime Minister
I am very happy to look at the case that the hon. Lady mentions. Clearly, this is an important issue. Anyone who has had a disabled child knows the enormous challenges that that brings. I am very happy to look at the case that she raises, and get back to her about it.
Sir Alan Haselhurst (Saffron Walden) (Con)
Q4. Will my right hon. Friend acknowledge that the benefits of economic recovery in my constituency are somewhat tempered by uncomfortable pressures on housing development and inadequate rail infra-structure? Notwithstanding the need for these matters to be dealt with quickly, is it not increasingly clear that there is a need to do more to stem the continuing flow of population to the south-east, by imaginative measures that will spread the benefits of recovery throughout all regions of the country?
The Prime Minister
My right hon. Friend makes an important point. As I said, we want a balanced recovery. Our long-term economic plan is working. An important part of that long-term economic plan is the infrastructure investment that we are making. Obviously, HS2 is important in rebalancing between north and south, but let us be clear: we are spending three times more on other transport schemes in the next Parliament as we are on HS2, and that includes projects such as rail electrification to Bristol, Nottingham and Sheffield, and between Liverpool and Manchester. All of these things can make a difference, and they are all part of our plan.
Edward Miliband
In recent days, the country’s leading mental health charities have joined together to warn of deep concerns about mental health services. Members from across this House have spoken out bravely on this subject, including about the impact on those who experience mental heath problems, their families and our country. Does the Prime Minister agree that mental health should have equal priority with physical health in our heath care systems?
The Prime Minister
First, let me agree with what the right hon. Gentleman said about the debate that took place in this House about mental health. I read the debate carefully and thought that a number of hon. Members took some very brave and bold steps to talk about issues and problems in their own lives. I thought that was an incredibly brave and right thing to do. In terms of whether mental health should have parity of esteem with other forms of health care, yes it should, and we have legislated to make that the case.
Edward Miliband
I thank the Prime Minister for that answer. Let me ask him about some specifics that suggest that we are moving away from the equal footing that we both want to see. The mental health share of the NHS budget is falling, services for children and young people are being squeezed, there are fewer mental health beds, and more young people are being treated on adult psychiatric wards. We know that those things are not just bad for the individuals concerned, but can store up bigger costs for the future. Does the Prime Minister agree that they really should not be happening?
The Prime Minister
First, taking the big picture on health spending, we have decided to increase health spending, rather than reduce it. Health spending is up by £12.7 billion across this Parliament. We have legislated for parity of esteem, as I have said, and we have put in place proper waiting times and disciplines for things such as mental health therapies, which were not there before. Of course, there is still further to go. We need commissioners to really focus on the importance of mental health services—but the money is there, the legal priority is there; we need the health service to respond.
Edward Miliband
The problem is that the mental health budget has fallen for the first time in a decade. It is not getting the share of health spending that it needs. I urge the Prime Minister to look at the specifics that I have raised. We need to ensure that the consensus that clearly exists in this House is reflected in the daily decisions that are made up and down the country about mental health in the health service. Will the Prime Minister agree to enshrine equality for mental health in the NHS constitution in order to send a message to decision makers about the priority that mental health deserves and to ensure that those who are affected by mental health problems get better access to the treatment and care that they need?
The Prime Minister
The right hon. Gentleman raises an important point not just about parity of esteem for mental health in law, but about what we see on the ground. We have put £400 million into talking therapies, which are a very important part of mental health provision. Mental health provision is referenced very clearly in the mandate that is given to NHS England, which in many ways is the absolutely key document for the health service. He is absolutely right that a culture change in favour of mental health and helping with mental health problems is still needed in the way the health service works. On that, there can be all-party support.
Gordon Henderson (Sittingbourne and Sheppey) (Con)
Q15. Many small business entrepreneurs in Sittingbourne and Sheppey have personal incomes below the current welfare cap. With that in mind, will my right hon. Friend consider doing more for small businesses by reducing the burden of regulation, lowering tax and increasing thresholds, as well as by offering them extra assistance in taking on more apprentices?
The Prime Minister
My hon. Friend makes an important point, which is that a key part of our long-term economic plan is to help small businesses take more people on. Absolutely key to that is the employment allowance—the cut in national insurance contributions of £2,000—that will come in this April. It is very important that we all encourage all small businesses to take up that money and therefore to take on more people. At the same time, we are abolishing employer’s national insurance contributions for the under-21s from April 2015. Companies, including those in his constituency, can therefore start planning to take on more people.
Albert Owen (Ynys Môn) (Lab)
Q5. Last week, the Deputy Prime Minister wrongly told the House that child care costs were coming down in England, while they continued to go up in Wales. The House of Commons Library says that that is not the case. This week, the Deputy Prime Minister is offering a pre-election bribe on child care, which will not come into effect until September 2015. Will the Prime Minister get a grip on this policy and help hard-working families with their child care costs now, in this Parliament, because of the cost of living crisis that they are facing today?
The Prime Minister
I am afraid that the hon. Gentleman is wrong on both counts. We are seeing some easing in cost pressures in England on child care costs, but I am afraid in Wales they are still going up. He might want to talk to the Welsh Assembly Government about that.
The point that the Deputy Prime Minister and I were making yesterday was that we want to help hard-working families with their child care costs. Therefore, from 2015, £2,000 on child care costs can be saved for every child. Is it not interesting, Mr Speaker, that we can now hear that the Labour party opposes that move? Clearly, it does not welcome it, so there will be a very clear choice at the election: if you vote for parties on this side of the House, you get help with child care, and if you vote Labour, you get nothing.
Nigel Mills (Amber Valley) (Con)
Q6. Will the Prime Minister join me in praising Conservative-run Amber Valley borough council, which has frozen its council tax for a fifth straight year, providing real help to hard-working people, in stark contrast to the three Labour parts of the area, where it is going up this year?
The Prime Minister
My hon. Friend is absolutely right. We should do everything we can to help hard-working people meet their budgets and meet their needs. That is why councils’ freezing council tax provides a huge amount of help. The Government are doing their part by freezing fuel duty, by raising the personal allowance and by doing everything we can to help hard-working people get on with their lives.
Mike Kane (Wythenshawe and Sale East) (Lab)
The Prime Minister assured the House on 27 November that the Government had exempted disabled people who need an extra bedroom from the bedroom tax. Does he think it is right that my constituent Mr Gunning has to pay the tax with his disability living allowance because he lives in Tory Trafford?
The Prime Minister
What I said to the House was absolutely correct, and I am happy to repeat that today, but there are obviously also the discretionary housing payments, which are there for local councils to deal with difficult cases. I would recommend that the hon. Gentleman takes that up with the council.
Bob Stewart (Beckenham) (Con)
Q7. Russia is not just expanding into the Crimea, but its ships, submarines and aircraft are increasingly appearing off our shores. Bearing in mind that we have great news on the economy and that the Ministry of Defence sent back an underspend last year, is it possible, as suggested by the House of Commons Defence Committee, that we could have a new maritime patrol aircraft before the next strategic defence and security review?
The Prime Minister
I say to my hon. Friend, first, that we are able to have these sorts of discussions and considerations only because we have sorted out the defence budget and got rid of the enormous deficit in it, and we have a successful and growing economy. In terms of maritime patrol, we are currently using the airborne warning and control system aircraft, and of course the Sea King, Merlin and Lynx helicopters, as well as Royal Navy ships and submarines. We work in very close partnership with our NATO allies, but I am sure the Ministry of Defence will be listening to my hon. Friend’s representations for the forthcoming SDSR.
Steve McCabe (Birmingham, Selly Oak) (Lab)
Are the 24 Tory tax rises evidence of the Prime Minister’s tax-cutting instincts?
The Prime Minister
This is a great Labour campaign—I spotted it this morning. They have enumerated a number of tax increases that we had to put in place in order to deal with the deficit. Just to remind people, we said it was right to deal with the deficit with 80% spending reductions and 20% tax increases. There is a problem, though, with this Labour campaign. When the spokesman was asked, “Would you change any of these tax increases?” the answer was no. I am not the world’s biggest expert in campaigns, but I would say that was a bit of a turkey.
Ian Swales (Redcar) (LD)
Q8. I welcome the Prime Minister’s help for those hit by flooding, but I am told that it applies only to areas affected since December. My constituency had its worst ever flooding last September. Will he visit the area, and will he extend his help to the homes and businesses that are still suffering?
The Prime Minister
I absolutely understand the hon. Gentleman’s concern, because the sea surge that took place at Redcar and across Teesside last September led to some of the worst floods that have been seen in the area for a long time. What is absolutely key is that we improve the sea wall to protect properties in Redcar from future flooding. My understanding is that, working with partners, there is a £30 million investment going ahead across 3 km of coast, which will protect something like 1,000 homes. Obviously there may well be more that we need to do, and I am very happy to discuss that with him.
Mrs Mary Glindon (North Tyneside) (Lab)
In 2010, the Chancellor said that the budget deficit would be eliminated by 2015. What went wrong?
The Prime Minister
What we said we would do was cut the deficit, and we have cut the deficit. We said we would get Britain back to work, and we are getting Britain back to work. We said we wanted a private sector-led recovery; we have got a private sector-led recovery. The hon. Lady asks what went wrong. I can give it to her in one word: Labour.
Christopher Pincher (Tamworth) (Con)
Q9. This week, BMW announced that it is coming to Tamworth and bringing with it 100 skilled new jobs. That is on top of the hundreds of new jobs that are already in the pipeline. When my right hon. Friend is next in the midlands, which is the manufacturing heart of our country, will he drop into Tamworth and commend our local enterprise partnership and Tamworth borough council for helping to deliver our long-term economic plan and make Tamworth the place in the midlands to do business?
The Prime Minister
I am always delighted to visit Tamworth, not least to pay homage to the statue of Sir Robert Peel. I would be happy to go back and do that. What my hon. Friend says about the manufacturing revival is important, because we really can see it now in the west midlands, with the news from Jaguar Land Rover, the new engine plant that is opening up, and also what he says about BMW. One in four BMWs, I think, now has a British-made engine. That is great news for what we want to see: more jobs making things, more jobs exporting things, and a manufacturing revival in the UK.
Kerry McCarthy (Bristol East) (Lab)
Q10. Speaking for myself, my right hon. Friend the Member for Bristol South (Dawn Primarolo) and the people of Bristol, whom Tony Benn served so well for 30 years, may I join in paying tribute to him and expressing condolences to his family? Tony Benn was from a very privileged background, yet he spent his political life fighting for the working people. With a cost of living crisis, wages falling by £1,600 a year, people queuing at food banks and so much that requires the Prime Minister’s attention, why does he seem so obsessed with plans to bring back fox hunting by the back door for the benefit of a privileged few?
The Prime Minister
I join the hon. Lady in paying tribute to Tony Benn as a constituency MP. He was always an incredibly busy Back Bencher and Minister, but he never forgot about his constituents. He was also very good with a friendly, helpful word for new Back Benchers, whatever side of the House they happened to be on. I am sure that, like me, many Members experienced that from him.
In terms of what we are doing to help the poorest in our country, the most important thing is getting people back to work. We have now seen 1.7 million new private sector jobs under this Government, and that is the best way of helping people sustainably out of poverty. As they come out of poverty, they will see a higher minimum wage, and also the ability to earn more money before they pay any taxes at all. Those are the Government’s priorities, that is our long-term plan, and that is what people are going to hear about.
Mr John Whittingdale (Maldon) (Con)
Q11. May I join my right hon. Friend in paying tribute to Tony Benn, whose ancestral seat of Stansgate is in my constituency? He was held in high regard by my constituents, even though they may not have agreed with his views.Is my right hon. Friend aware that today’s figures show that unemployment in Maldon has fallen by 27% since the last election, and does he agree that that is further proof that the Chancellor was absolutely right to ignore his critics on the Opposition Benches and stick to his guns?
The Prime Minister
I thank my hon. Friend for what he has said. As I said, there is good news in the unemployment figures about getting women and young people into work and about falls in long-term unemployment, but there has also been the largest annual fall in the claimant count—the number of people claiming unemployment benefit—since February 1998. Getting people back to work and giving them the chance of a job, dignity and security in their lives is really important. That is what our economic plan is all about.
Alison McGovern (Wirral South) (Lab)
At the weekend a young woman from Eastham in my constituency, Sophie Jones, died of cervical cancer, leaving her family and friends bereft and unable to understand why she did not get the smear test that she asked for. Will the Prime Minister send his sympathies to her friends and family, and will he work with me to ensure that once we understand what went wrong, we have the right policies in place to ensure that that does not happen to anyone else?
The Prime Minister
The hon. Lady is absolutely right to raise that case. Many of us will have read about it in the papers at the weekend, and it seems an absolutely tragic case. We have made huge breakthroughs in this country, under Governments of both parties, in the screening programmes and public health information that is available, but something seems to have gone wrong in this case. I am very happy to look into it, and to write to the hon. Lady and seek any views that she has about it too.
Mr David Ward (Bradford East) (LD)
Q12. Today’s unemployment figures show a reduction in Bradford East of 14, which—I concede—is better than an increase of 14, but is very disappointing nevertheless and leaves us ninth highest for unemployment in the country. I recently visited a training provider in Bradford, who said that there were 600 apprenticeship vacancies in Bradford. Is the Prime Minister confident that we are doing enough to ensure that young people in particular are aware of apprenticeships, but also prepared to take them on?
The Prime Minister
My hon. Friend makes a very important point; pockets of quite high unemployment are often found right next to areas that have a lot of apprenticeships or jobs available. There are two things that we have to get right. One is that we have to make sure that more of our young people are leaving school with the key qualifications, including English and maths, which are absolutely vital to taking on an apprenticeship—we need to stress that those subjects are vocational subjects and must be at the heart of education. Secondly, we need to do more to explain to young people in school what is available in terms of apprenticeships and training, and that is exactly what our National Careers Service is going to do.
Ian Murray (Edinburgh South) (Lab)
Q13. Are we really all in this together when the Prime Minister thinks that some public sector workers do not even deserve a 1% pay rise while he signs off on bumper pay rises of up to 40% for his own Government’s special advisers? Does that alone not show that not only is the Prime Minister out of touch, but he only stands up for his own privileged few?
The Prime Minister
Well, it is interesting: it is 12.30 pm and 29 seconds and not a single Labour MP has mentioned the unemployment figures today. Let me answer the hon. Gentleman very directly: under our plans, everyone in the NHS will get at least a 1% pay rise, and this is something I was told was supported by the Labour party. This is what the leader of the Labour party said:
“we’re talking, actually about a pay increase limited to 1%...as I say, this Labour party is going to face up to those difficult choices we have to make.”
How long did that one last? Confronted by a trade union campaign, he demonstrates once again his complete weakness and unfitness for office.
Paul Uppal (Wolverhampton South West) (Con)
Q14. A recent report into female foeticide suggests that the female population has been reduced in the UK by 4,500 and worldwide by 200 million. As a proud British-Asian father of two daughters, may I ask my right hon. Friend to call for an end to this most appalling practice? This once taboo subject clearly must end, not just in the UK, but in the world as a whole.
The Prime Minister
My hon. Friend is absolutely right. It is a simply appalling practice, and in areas such as that, and female genital mutilation and forced marriage, we need to be absolutely clear about our values and the messages we send and about these practices being unacceptable. The Government have made clear that abortion on the grounds of gender alone is illegal. The chief medical officer wrote to all doctors on 22 November last year reminding them of their responsibilities. I am meeting the chief medical officer this afternoon and I will raise this issue with her, and I think it is absolutely right of my hon. Friend to run this campaign.