Oral Answers to Questions

Dominic Raab Excerpts

Wednesday 9th July 2014 Commons Chamber

[The Prime Minister]

I think that we can probably tell the difference between a ray of sunshine and the hon. Gentleman on this issue, as on so many others. This is an excellent deal for Birmingham and the west midlands. If he does not think so, he might want to explain why Sir Albert Bore, the Labour leader of Birmingham city council, said:

“This is good news for Birmingham. A number of major projects will now be accelerated. Transport routes across the city will be much improved… And other money will go into site development that will provide much needed jobs in the city.”

I think that the hon. Gentleman needs to spend a little more time with Sir Albert Bore.

[Mr Dominic Raab (Esher and Walton) (Con)]

Q15. Tomorrow Britain faces damage and disruption from strikes, none of which has been backed by a majority of union members. Since the right hon. Member for Doncaster North (Edward Miliband) became the leader of the Labour party, it has taken £13 million from Unite alone, so he will not stand up to the union barons. Will the Prime Minister make it clear that we are on the side of the public, who by 3:1 back a voting threshold for strikes to stop this licensed sabotage?

[The Prime Minister]

My hon. Friend makes a very good point. Frankly, I think the time has come to look at setting thresholds in strike ballots. I mentioned the NUT strike earlier. A ballot is taking place—[Interruption.] Look, I know Labour Members are paid for by the unions, but they might want to listen to this, because it is going to disrupt our children’s education. The strike ballot took place in 2012. It is based on a 27% turnout. How can it possibly be right for our children’s education to be disrupted by trade unions acting in this way? It is time to legislate, and that will be in the Conservative manifesto.

Cost of Living: Energy and Housing

Dominic Raab Excerpts

Thursday 5th June 2014 Commons Chamber

[Mr Davey]

Many commentators thought we should cut the deficit faster, but we have taken a very responsible approach, to ensure not only that interest rates were kept low—that has been so vital for many families and the hon. Lady’s constituents—but that employment has risen so well. I would have thought she would be welcoming that.

The problem is that the Opposition used to criticise the coalition on unemployment—they used to say that unemployment was going to go up—but when the facts showed they were wrong and that unemployment has gone down they have had to change their economic argument. The Opposition keep changing the economic argument because they keep losing the economic argument. Let us examine their recent economic argument on the cost of living. I presume that everyone in this House accepts that the key measure of the cost of living remains the inflation figures. So if the cost of living is the measure by which to judge this coalition, let us see what has been happening to inflation. Inflation is lower than when the previous Government left office and it is falling.

I have to confess to the House that the Bank of England’s inflation target is not being hit—inflation is lower than the target. In March, inflation had slowed to just 1.6%. Of course for our constituents it is real incomes and real wages that actually matter: what people have to spend after tax and after inflation. Looking at things in that way, it is true that after the 2008 recession many people saw living standards fall. But let us remind ourselves what happened: a huge £113 billion was wiped off our economy in the great financial crash of 2008, and there was a £3,000 cost to every household in the United Kingdom. To put that right, and to keep employment rising, it was arithmetically inevitable that living standards could not rise in the turnaround period for our economy, but now we really are in recovery. Now it is not just employment that is rising—it is living standards too. How has that happened? Of course, it has been because of the coalition’s long-term economic plan.

Key aspects of that plan are really beginning to help, above all the implementation of the Liberal Democrat manifesto policy to increase the tax-free allowance to £10,000 a year. Our record not just of implementing this fairest of tax cuts, but doing more than we promised is helping more than 26 million people. It has taken 3.2 million low paid out of income tax and it has cut the income tax bill of a double-earning couple on average earnings by £1,600 a year. This Liberal-Democrat-turned-coalition policy has cut the number of low-income people paying income tax more in five years than any other Government have achieved in the same period since records began.

[Mr Dominic Raab (Esher and Walton) (Con)]

Before the Secretary of State diverts on to a partisan frolic, may I ask whether he welcomes the British Retail Consortium’s data out this week showing that competition between supermarkets has led to a decline in non-food prices of 2.8%? Does he also welcome the fact that food inflation is at 0.7%, its lowest level since 2006?

[Mr Davey]

My hon. Friend is absolutely right to make that point: competition, not Government intervention, is the best way of getting prices down and helping people with their living standards.

--- Later in debate ---

[Mr Dominic Raab (Esher and Walton) (Con)]

It is a pleasure to speak in this debate and to follow the hon. Member for Stretford and Urmston (Kate Green). She touched on some of the issues I intend to speak to, although she may have come to slightly different conclusions from those I shall reach.

The No. 1 thing for this Government from their inception through to this Queen’s Speech has been the economy. There is no divide between economic growth and fairness and all the things that follow through from that, including the cost of living, which is the subject of this debate. It has been mentioned that we have cut the deficit, and we hope it will have been cut by half by the end of this Parliament, as has been forecast. That is not just some bean-counting exercise; it relates directly to mortgage payments, and it is therefore a cost of living issue as well as an economic issue.

A lot is said about Government debt, but far less is said about banking and household debt. Both of those are down from their high point under the last Government, and that is important. None of us wants to have to talk to our constituents about taxpayers bailing out banks again, and with interest rates likely to rise—and rightly so—in the relatively near future, it is very important that household debt comes down as well, so that those on tight, fine margins in respect of their mortgages do not feel the pinch too much.

We have recently become the fastest growing economy in the advanced world, and as a result unemployment has come down to 6.8%, as opposed to the 8% rate left by the last Government. The private sector has fuelled a huge amount of job creation. The media and also many in this Chamber talk about job creation and unemployment as if it were an economic priority, but the most economically and socially disfranchised in this country are the unemployed, and jobs creation is about dealing with them. This Government’s record in that regard is stellar: in just four years we have seen businesses create double the number of jobs that were created in the last decade under Labour. That is absolutely critical.

Inflation has been one of the issues eating away at the cost of living for many of our constituents, but again this Government’s record is very clear. The statistics do not lie: consumer prices index inflation now stands at 1.8% as against the 3.4% we inherited from the previous Government. The British Retail Consortium figures out just this week show that because of supermarket competition there has been a decline in non-food prices of 2.8% over the year. That is critically important, and annual food inflation stands at 0.7%, the lowest rate since 2006.

[Huw Irranca-Davies]

I just want to dig under some of the things the hon. Gentleman has been saying about debt. How, for example, would he make sense of the fact that, according to a recent report, the Bridgend county borough area, which covers two constituencies and contains a big manufacturing belt and areas of prosperity, has seen a tenfold increase in the number of people taking out payday loans at the end of the week to ease themselves over into the following week? In spite of all the good news that the hon. Gentleman is giving us, something worrying is happening.

[Mr Raab]

I am trying to look at the big picture, and the fact is that household debt has fallen from its 2009 peak of about 109% of GDP to around 10 percentage points lower. I am not suggesting that there are no issues relating to other subsets of household debt, such as credit and payday loans, but if the hon. Gentleman looks at the big picture and examines the raw data, he will see that the present situation represents a significant improvement on the one that his Government left behind. He is right to look at other micro-issues, and we must continue to do that, but let us not lose sight of the big picture.

When it comes to the big picture, we have to talk about housing. We could talk about stamp duty, as I am tempted to do, and about planning regulations and the relevant taxation, but the key issue is the supply of new homes. We need to do more on that front. I am sure that the Secretary of State for Communities and Local Government does not feel that he is on the back foot in this regard; I am simply urging everyone to look at the raw data. Hon. Members will be delighted to hear that, according to DCLG figures, the average annual number of affordable homes built under this coalition was 48,000, compared with 31,000 during the 13 years of the previous Government. That represents a 50% increase, and we should recognise the progress that we have made as well as talking about what else needs to be done.

We are talking about fairness in this debate on the cost of living, and we should also talk about inequality. The Leader of the Opposition is a wonkish sort—I mean that in the best possible way—and I am sure that he will be delighted to learn that the Gini coefficient shows that inequality is lower under this Government than it was under Labour. People talk about tax cuts for millionaires, but he will also be delighted to know that people earning between £10,000 and £15,000 are paying 54% less tax under this Government than they were in the last tax year under the previous Government, and that millionaires are paying 14% more. The idea that this Government are the enemy of the low-paid and the friend of the millionaire is therefore news to us.

[Ms Gisela Stuart]

I shall try not to be too wonkish. The recent Institute of Economic Affairs pamphlet on poverty argued that the best way to help the poor and to reduce inequality was to reduce the cost of those things that most disproportionately affected the spending of the poor—energy, food and housing. Given the hon. Gentleman’s argument, should he not therefore welcome Labour’s proposals?

--- Later in debate ---

[Mr Raab]

The hon. Lady’s interventions are always thoughtful, but I am not quite sure to which bits of Labour’s proposals she is referring. We can talk about the minimum wage and rent controls, but I fear that they would not have the impact that she desires, despite her best intentions. Some people on my side of the House think that raising the minimum wage would be a good thing, but I do not think that it would be the best thing to do for the most socially and economically disfranchised; nor do I think that rent controls are the right answer.

[Ms Stuart]

Rather unusually for a Labour MP, I am praying in aid the Institute of Economic Affairs, which has stated that it would be better to reduce energy and food costs than to increase benefits. I would have thought that that would be absolutely in line with the hon. Gentleman’s thinking.

[Mr Raab]

The hon. Lady is absolutely right; we share the same aspirations. Unfortunately, however, this is all about the means to achieving those ends. If we had wanted to do something about energy prices, we should not have closed down nuclear power stations, as happened under the last Government. We should be taking advantage of shale gas, as we propose in the Queen’s Speech. One area in which we can make common cause on the means as well as the ends is the need to reform the common agricultural policy, which puts £400 on the average family’s bills. The hon. Lady will recall, however, that Tony Blair rather meekly gave up on CAP reform as well as sacrificing the British rebate.

The hon. Member for Ogmore (Huw Irranca-Davies) mentioned regional impacts. The recovery is often described as London-centred, but this week’s figures from the Office for National Statistics show that gross disposable income per person has risen 4% in the north-east, which is higher than the UK average and considerably higher than the figure for London. The shadow Secretary of State, the right hon. Member for Leeds Central (Hilary Benn), is also a wonkish type—again, I mean that in the best possible spirit—and if he and other hon. Members on both sides of the House look at the raw data, they will see that we have done a good job in relation not only to economic stewardship but to social fairness. I might even manage to get the shadow Secretary of State to agree that Thomas Piketty would have to accept that Britain is not just economically better off but fairer under the Tories. Let us see whether the right hon. Gentleman can bring himself to do that when he winds up the debate later.

We cannot rest on our laurels, however. There are important measures in the Queen’s Speech to strengthen the economy further and to curb the practice of public sector employees claiming redundancy and subsequently taking another job in the same sector. It is important that we get the public sector pay bill down, and that should be done in a way that targets the bureaucracy, the highly paid managers and the waste while protecting front-line services.

We are going to simplify the national insurance paid by the self-employed. I would like us to go further and cut employers’ national insurance contributions, because they can deter companies from hiring people as well as from paying better wages. I was delighted to read in The Times today—I am sure that the Parliamentary Secretary to the Treasury, my right hon. Friend the Member for North West Hampshire (Sir George Young) will confirm this—that the No. 10 policy unit is considering raising the threshold for employees’ national insurance contributions. I have argued for that for a long time. If we really want to do something about low pay, as the hon. Member for Stretford and Urmston does, raising the threshold for employees’ contributions is by far the clearest way of doing it. The Resolution Foundation, the Institute for Public Policy Research and all the left-wing think-tanks agree with me on that, and I am glad that the Government are looking seriously at that proposal.

I am delighted by the proposed reforms to speed up infrastructure projects and to allow fracking firms to run shale gas pipelines. I should like to comment on a couple of the points that the hon. Member for Stretford and Urmston made about shale gas. Ofgem has made it clear that our back-up energy stocks will fall to 2% by 2015. The chances of blackouts will increase from one in 47 years to one in 12 years. The previous Government allowed this stark energy crisis to creep up on us, and we must address it now. The renaissance in nuclear power will play an important role in achieving that; it will be good for meeting our energy demands and for decarbonisation.

We must also bear in mind our unique national comparative advantage in relation to shale gas. In 2013, the British Geological Survey—hardly a Thatcherite body by disposition—estimated that there were 1,300 trillion cubic feet of shale gas in the Bowland-Hodder basin alone. The reserves equate to 47 years of total UK gas consumption or 90 years of the UK’s North sea gas production. Of course, not all of it will be extracted, and it will take time to develop the right regulatory regime. That is important, but the opportunities over the medium term are immense. The Institute of Directors has estimated that shale gas could meet one third of UK gas demand and support 74,000 jobs, not to mention boosting manufacturing and helping us sustainably to rejuvenate the economy of the northern region.

I understand the concerns about fracking, but the Royal Academy of Engineering and the Royal Society—again, not Thatcherite bodies by any stretch of the imagination—have looked at the risks to aquifers and the risk of earthquakes and concluded that the risks are very, very low. They have concluded that, with a decent set of regulations, the process could be properly managed and monitored. Frankly, the spectres of polluted drinking water and of earthquakes have been massively exaggerated by ideologically driven activists. We ought to get cracking with fracking, and I am delighted that this Queen’s Speech will bring that about. It will also help us to wean ourselves off energy dependence on places such as the middle east and Russia; we need to consider that given the stability in those regions.

In this Queen’s Speech we also want to reward the great economic virtues of saving and grafting, both in the short term and over the long term. That is what our reforms to annuities are about. People will not in future be required to buy an annuity with their pension savings and they will be able to draw their retirement income in one go, if they so choose. If people save hard and do the right thing, we trust them. Our tax break for child care, worth up to £2,000 a year per child, is crucial to dealing with the cost of living. Many couples in our changing society are between them—both men and women—grappling with the balance of bread-winning and child caring. I have to declare an interest in the tax break for child care at this point, because No.2 in the Raab household will be on its way by the end of the year, and we will be delighted to take advantage of this new piece of legislation.

Finally, the European elections showed the level of the corrosion of public trust in the political class, and I welcome the introduction of a right of recall in the Queen’s Speech. I am very conscious of the debate that is being had in government and with parliamentarians such as my hon. Friend the Member for Richmond Park (Zac Goldsmith) about getting the right balance. We do not want something that is abusive, but we should not set up a right of recall and then torpedo it by allowing a committee of politicians to veto or vet it. I am sure we can strike the right balance to give the public greater trust in our political class, and I hope that as that Bill comes forward we can do so.

I am conscious of the time and know that others wish to speak, but I want to make one final point about immigration. It relates both to the economic pressures in this country and specifically to housing, which is the subject of today’s debate. The Government have already cut net immigration by a third; we have cracked down on bogus colleges, which sprouted up left, right and centre under the previous Government; and we have cracked down on the sham marriages and the abuse of the family route. A Bill will be going through this Parliament to strengthen immigration controls. I have argued passionately for us to strengthen some areas of that Bill, but I recognise the important steps that have already been taken. It is a bit rich if all the Labour Front-Bench team and the shadow Home Secretary can do is criticise the target of reducing net immigration to tens of thousands, given that her Government made it so difficult to accomplish that. It is a bit rich coming from the party of open-door immigration, which boasted in office that there is “no obvious” upper limit on immigration—that was said by a past Labour Home Secretary, whom I shall not name for fear of embarrassing him. It is a bit rich coming from the party that failed to impose transitional controls on immigration from the eight countries from central and eastern Europe in 2004.

I am no clearer today as to what positive agenda the Labour party is offering this country to take it forward. As Winston Churchill once said of the Soviet Union, Labour policy is a puzzle inside a riddle wrapped in an enigma; it has no clear vision, no serious policies and no credible leadership. The Government have a clear agenda, of fresh reforms cast against a Conservative vision of a more prosperous and fairer Britain grounded in sustainable public finances, and in the virtues of rewarding enterprise, hard graft and saving. I commend the Gracious Speech to the House.

Oral Answers to Questions

Dominic Raab Excerpts

Wednesday 30th April 2014 Commons Chamber

[Mr Maude]

We are doing much more to co-ordinate than has ever been done before, and last month I launched CERT UK, which includes the cyber-security information sharing partnership that some 400 companies now belong to. The sharing of information, which was very inhibited before, is now taking place to a much greater extent. There is more we need to do, but Britain overall is not in a bad place on that. However, we need to move fast because those who wish to undertake cybercrime and cyber-attacks are moving pretty fast too.

[Mr Dominic Raab (Esher and Walton) (Con)]

5. What steps he is taking to reduce waste in the civil service.

[The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)]

The Efficiency and Reform Group was set up after the 2010 general election to tackle wasteful expenditure in the public sector. We have supported Departments in achieving savings in 2010-11 of £3.75 billion, a further £5.5 billion the following year and more than £10 billion in 2012-13. In June we will announce the figures for the year just finished.

[Mr Raab]

I thank the Minister for that answer and welcome the progress to date. With the stronger language requirements for visas introduced by the Home Secretary to promote integration, what scope is there to reduce the high cost of translation across the public sector?

[Mr Maude]

There are some central contracts and some scope for us to do this much better, although we need to be confident about quality. Through the Crown Commercial Service we can now aggregate demand to a much greater extent, but what we do not want to do is exclude smaller translation companies from this market as they can often provide a much more cost-effective service. The issue is kept under constant review, and there is definitely scope for further savings.

Oral Answers to Questions

Dominic Raab Excerpts

Wednesday 12th March 2014 Commons Chamber

[Mr Maude]

I have indeed discussed this with my colleagues in BIS. I do not take the gloomy view that the hon. Lady takes, that any involvement of the private sector means that the Land Registry will be less effective or have less opportunity to grow. A lot of what the Land Registry does is excellent, and there is a real opportunity for it to grow. If that involves bringing in a private sector partner, or private sector capital of one form or another, I hope that she would support that.

[Mr Dominic Raab (Esher and Walton) (Con)]

T3. May I welcome the Minister’s plans to improve accountability for senior civil service appointments? To ensure transparency and the scrutiny of appointments, may I also urge him to consider making the shortlists for appointments for the heads of quangos, Whitehall Departments and international courts the subject of prior scrutiny by Select Committees?

[Mr Maude]

My hon. Friend’s latter point is constantly reviewed, and it will come as no surprise to him that his urging is supported by many Select Committees. On his first point, for the first time all permanent secretary appointments are for a fixed tenure of five years. We publish the objectives of permanent secretaries, and all this is beginning to be more accountable than it has ever been before.

Oral Answers to Questions

Dominic Raab Excerpts

Wednesday 30th October 2013 Commons Chamber

[Mr Maude]

I am sure that when the hon. Gentleman was in residence in No. 10 Downing street in the last Government—when the degree of transparency was virtually nil—it would never have been disclosed, as it will be, that the hon. Member for North Ayrshire and Arran (Katy Clark) was at Chequers helping the then Prime Minister to plant a tree.

[Mr Dominic Raab (Esher and Walton) (Con)]

T4. This time last year, Ministers announced a radical overhaul of facility time. With Royal Mail, teacher and fire brigade strikes inflicting disruption on the public and with the appalling behaviour of Len McCluskey in Grangemouth, FOI data I have received show that the overall public subsidy from Whitehall to the unions has gone up, not down. What further action is my right hon. Friend taking?

[Mr Maude]

The events at Grangemouth illustrate the problems that can arise when full-time union officials are paid for by the employer. I am glad to be able to tell my hon. Friend that the number of full-time union officials on the civil service payroll has halved and that the cost has more than halved.

Oral Answers to Questions

Dominic Raab Excerpts

Tuesday 15th October 2013 Commons Chamber

[The Deputy Prime Minister]

Of course I accept that for some households the change from one system to another creates real dilemmas that need to be addressed through the money that we are making available to local authorities. The right hon. and learned Lady cites a figure. To be honest, lots of wildly different figures have been cited about the policy’s impact. That is why we are commissioning independent research to understand its impact. I suspect that it varies enormously between one part of the country and another, and one local authority and another. That is why we are trebling the resources that we making available to local authorities.

[Mr Dominic Raab (Esher and Walton) (Con)]

T2. The Deputy Prime Minister has specific responsibility for implementing the programme for government and likes to take special ownership of the chapter on tax, a key aim of which is to help lower and middle-income earners. I have a Lib Dem briefing that states:“£50,000” is “a very large salary: these are not middle income earners.”It also says:“We are looking at how” they “could make a further contribution.”Why does he want to clobber the middle classes?

[The Deputy Prime Minister]

I do not, and as we made clear at the time the £50,000 figure does not represent any policy of my party. However, I will not be shy about parading the fact that it is because of Liberal Democrats in government that we are giving a huge tax cut to over 20 million basic rate taxpayers, a policy that I was warned by the hon. Gentleman’s party leader at the time of the last general election was not deliverable. It has been delivered because of Liberal Democrats in government.

Tributes to Baroness Thatcher

Dominic Raab Excerpts

Wednesday 10th April 2013 Commons Chamber

[Mr Dominic Raab (Esher and Walton) (Con)]

Unlike many who have spoken today, I met Lady Thatcher only once, but I was nevertheless touched by her unique blend of resolve and kindness. She wrote to me after the last election, as she wrote to many of my new colleagues, urging us to

“carry the fight to our opponents whenever the time comes”.

Her twilight years never dimmed that most tenacious of spirits.

Of course she had her critics and her enemies—did anyone ever get anything done without them?—but this was a woman who won three elections by appealing across tribal political divides and across society. For me, what stands out about her legacy is the fact that she was an underdog fighting for the underdog. Yes, she was renowned for her economic leadership; yes, she reminds us today that we have a choice, and that if we rise to the challenge, our better days lie ahead and not behind us; but she would never have held office for so long had she not carried people with her.

She may have caused division within the Westminster village, but in the country, because of her, 6 million took a stake in British businesses, and 1 million bought their council homes. For many more—including refugees like my father, who came here with nothing—she nurtured the flicker of aspiration, inspiring people, regardless of their background, to believe that as a result of hard work, their dreams of prosperity and a better quality of life lay within their grasp. That message resonated not just in Britain, but around the world. As cold war historian John Lewis Gaddis has observed,

“It was a blow for Marxism, for if capitalism really did exploit the masses, why did so many among them cheer the ‘iron lady’?”

She was fired by a moral clarity that drove decisive action against perilous odds. We think of the Iranian embassy siege, and of the Falklands. Her most basic insight on Europe, shortly after she took office, remains prescient. She said:

“We believe in a free Europe, not a standardised Europe. Diminish that variety within the member states, and you impoverish the whole community.”

That neatly sums up the malaise that afflicts the European Union today.

As others have said, Margaret Thatcher made the political weather. She forged a new consensus. That is why, after the 1997 election, the cover of Time magazine pronounced her legacy the real winner. That is why Tony Blair wrote in his memoirs:

“Mrs Thatcher was absolutely on the side of history…in recognising that as people became more prosperous, they wanted the freedom to spend their money as they chose; and they didn’t want a big state getting in the way of that liberation by suffocating people in uniformity, in the drabness and dullness of the state monopoly… Anything else was to ignore human nature.”

When Caesar learnt of Mark Antony’s death, he lamented:

“The breaking of so great a thing should make

A greater crack”.

Today, we ensure that the passing of so great a statesman echoes from this Chamber. Margaret Thatcher was the ultimate conviction politician: our greatest peacetime leader.

Oral Answers to Questions

Dominic Raab Excerpts

Tuesday 26th March 2013 Commons Chamber

[The Attorney-General]

Yes, they can be confident that the reports will be looked at. Indeed, there are other routes by which reports might come to the SFO, including through the City police and Action Fraud. There is clearly a requirement for prioritisation, but the SFO will examine and consider any reports it receives.

[Mr Dominic Raab (Esher and Walton) (Con)]

4. What steps he is taking to strengthen conviction rates.

[The Attorney-General (Mr Dominic Grieve)]

The Crown Prosecution Service secures convictions in over 17 out of every 20 cases. The Director of Public Prosecutions has concentrated particularly on improving rape and domestic violence outcomes for victims, and conviction rates for both have improved substantially over the past two years. As for the statistical performance of the Serious Fraud Office, my hon. Friend will have heard the answer I gave to the hon. Member for Cardiff West (Kevin Brennan).

[Mr Raab]

I thank the Attorney-General for that answer. For all the controversy over terrorism legislation, LIBOR rate rigging and tax-dodging, terrorism convictions plummeted by 77% over the past five years, convictions for false accounting fell by 73%, and convictions for tax evasion slumped to 107 under Labour. What action is he taking to plug the gaping prosecutorial deficit left by the previous Government?

Oral Answers to Questions

Dominic Raab Excerpts

Tuesday 10th July 2012 Commons Chamber

[The Attorney-General]

I can reassure my hon. Friend. The final scoping for the inspection is not yet complete but it will include examination of a significant number of sexual offences cases to ascertain whether the disclosure of medical records, including, where applicable, counselling notes, complies with the prosecution’s duty of disclosure and policy and the potential impact of any non-compliance. As I hope she will appreciate, although the other part of the disclosure inquiry is particularly about the problems that came out of the south Wales case of Lynette White, those two things are not mutually incompatible.

[Mr Dominic Raab (Esher and Walton) (Con)]

7. What steps he is taking to increase the rate of successful prosecutions in counter-terrorism cases.

[The Attorney-General (Mr Dominic Grieve)]

The Crown Prosecution Service, police and security services work closely together to build a strong evidential case to enable those suspected of involvement in terrorism to be charged wherever possible with appropriate criminal offences. A post-case review is held after every prosecution and, where appropriate, lessons learned and good practice are used to improve future prospects of successful prosecution and conviction.

[Mr Raab]

I thank the Attorney-General for that answer. According to Home Office data, convictions under terrorism legislation have fallen by 100% since 2006 while convictions for false accounting have fallen by 82% since 2004. Is it not time that we better armed our prosecutors with tools such as intercept evidence and greater use of plea bargaining so that we can take a more robust approach to disrupting and deterring joint criminal enterprises, whether they are terrorism or fraud in the banking sector?

[The Attorney-General]

I have had the opportunity to discuss this with the CPS and it is not thought that the processes we have require widespread reform. The CPS and the Security Service already work closely together from the earliest stages of an investigation, exploring options to strengthen the evidence and follow lines of investigation that lead to sufficient evidence on which to charge. Early formation of the prosecution team and collaborative working with international partners are regarded as essential in securing convictions. I have not seen the statistics to which my hon. Friend referred, but mercifully the number of prosecutions for terrorism-related offences is small and I would be just a little wary of trying to extrapolate a trend in view of the numbers of cases involved. For example, I know that in the early part of this year there were a number of notably successful prosecutions in that field.

Public Bodies Bill [Lords]

Dominic Raab Excerpts

Tuesday 12th July 2011 Commons Chamber

[Mr Dominic Raab (Esher and Walton) (Con)]

I welcome the opportunity to speak in this important debate.

Two key objectives for the coalition are to tackle irresponsible Government spending and to deliver reform of the public sector. The Bill will help to achieve both those aims.

It is worth saying at the outset that some public bodies do important work and are a necessary response to the complexity of modern government. However, they have become massively overused. When the Government came to office, there were 901 quangos. In 2009, executive quangos alone—those that take decisions and do not just advise—employed 111,000 people at a cost to the taxpayer of £38 billion. Governments of all political persuasions share the blame for adding to this problem, but the previous Government certainly added to it in abundance. Funding for executive quangos leapt by 59% between 1997 and 2008.

It is right that the Government are cracking down on the inflation of the quango state. They are doing so first and foremost through greater transparency in the exercise of public functions and powers. In the current economic climate, in which value for money is even more imperative than usual, transparency and ministerial accountability are especially vital. Government policy is also welcome because abolishing and merging quangos and cutting their programmes will save £30 billion over the spending review period, as Ministers have reiterated yet again today. Given the difficult spending decisions that have inevitably been made elsewhere, it is essential to streamline Government as much as possible. Nowhere is that more important than in the sphere of quangos.

It makes sense to merge bodies with comparable functions, as set out in clause 2. For example, the proposed merger of the Office of Fair Trading and the Competition Commission is designed to deliver more effective regulation. It will also realise annual cost savings of between £3.5 million and £6.8 million. It is right, as Members across the House have done, to look at and question the practical impact of these changes. On that particular merger, will the Minister say any more in his winding-up speech about the institutional separation of powers between the initial investigation and the final enforcement decision? I have spoken to a number of competition lawyers and experts about that, and it is a key feature of the current competition regime. How will it be retained in the combined competition and markets authority?

Most of the savings will come not from mergers, but from cutting waste. Some quangos have been guilty of the most appalling waste of taxpayers’ resources. The right hon. Member for Dulwich and West Norwood (Tessa Jowell) made a spirited defence of the Equality and Human Rights Commission. However, auditors have refused to sign off its accounts for three years running. Last year, it breached Government pay guidelines and spent more than £1 million without due authorisation. It presided over a botched website launch, which eventually saw almost £1 million written off. Members do not need to take my word for that. The National Audit Office damningly concluded that

“there is little general financial understanding or competence in the organisation, and that many managers have limited experience of the effective management of public money.”

I discovered that for myself last week when I was informed through a parliamentary answer that a single agency worker at the commission was paid an astonishing salary of £200,000 last year. How can that possibly be justified? In the light of that, it is right that the commission is listed in schedule 5 to the Bill, allowing its functions to be modified or transferred by the Government, subject of course to the consultation on its future.

Other quangos that are to be scrapped in the Bill should probably never have been created in the first place, and I make no apology for listing as chief among them the eight regional development agencies, a pet project of the last Government that proved an expensive failure. The RDAs were established in 1999 but did little to stimulate growth. Job creation in the five years before their creation was higher than in the five years that followed despite the continued boom economic conditions. They also failed to reduce regional imbalances, which was one of their main aims, as figures from the Office for National Statistics amply demonstrate.

The RDAs made a range of poor spending decisions. Between 2007 and 2009, for example, 62% of all grants went to predominantly public sector organisations, while the trade unions were awarded more than £3 million. That is not a spending pattern that inspires confidence, nor is it one to drive a private sector-driven economic recovery. The RDAs will not be missed by those trying to drive jobs and growth in the private sector, especially as scrapping them will save three quarters of a billion pounds in administration costs alone between now and 2015. It is high time to shed light on quangos’ activities and cut down on waste.

Looking ahead, I also welcome the commitment made by the Minister for the Cabinet Office in his statement in October to triennial reviews of the purpose of the remaining quangos. They will be an important part of ensuring that the number of quangos does not balloon again in future, but that provision for them does not appear in the Bill. I ask the Minister to explain why it will not be made a statutory requirement. Equally, Ministers have previously talked about a role for the Public Administration Committee in vetting any new quangos. It would be interesting to know what the status of that proposal is.

Ultimately and overall, the Bill is a big step in the right direction towards strengthening transparency and accountability while delivering savings for the taxpayer, and it has my full support.