I congratulate the Select Committee on its report and the hon. Member for Sheffield South East (Mr Betts) as Chairman on his excellent speech introducing it. He is right that there is a consensus between the political parties on the need for, and role of, greater devolution. In my view, that should include devolution of powers not just from central government to local and regional government, but ultimately from local government to communities as well. I shall touch on that in my remarks.
The topical issue in this debate is about the northern powerhouse, the Manchester area and the devolution of powers from central Government to that Greater Manchester authority on matters including economic development and infrastructure, and health and social care. I am sure we will hear more from hon. Members from that region as the debate proceeds. In my region of Kent, however, many people looking at that level of devolution would probably welcome it and like to see it in their area, too.
The Select Committee Chairman rightly highlighted the number of city and county areas in the country that are of comparable size to other devolved areas of government. Kent, for example, has a similar size of population and parliamentary representation as Northern Ireland, which is a clearly defined area. If devolution can be managed in Northern Ireland, I think it can be managed in an English county authority, particularly one with more than 1.5 million people, as well. I would like to see this form of devolution—incorporating the planning of major economic projects, major investments and major infrastructure projects. We can take a county-wide view, lobby the Government for money, plan for the future and have the power to manage more of the investment ourselves and to create our own priorities, particular for transport infrastructure.
The debate about the integration and local management of health and social services also reflects something that many hon. Members would recognise and agree with for their own communities—the fact that greater integration between the management of those two resources is essential. We need to consider the experience of patients either being treated in the health service or receiving social care in their community so that they end up on one single pathway of care that can be managed by different bodies. The more they are integrated and the more their budgets are managed together, the better the results will be.
As we all know from our constituency case work, when a vulnerable person needs urgent and expensive medical care, we know exactly how that should be dealt with and it is often easy to provide for it, whereas when someone needs less expensive intervention at a lower level to support independent living at home, the money may be harder to find. I believe that if we adopted a more strategic approach and viewed such cases alongside each other, we would deliver not only better value for money for the taxpayer but better outcomes for patients.
Does my hon. Friend agree that we also need an England level of decision making when it comes to strategic railways, strategic roads and major health policies? We already have that in Whitehall Departments, but is there not a fundamental injustice if Members of Parliament from other parts of the United Kingdom can vote on such issues when they are England-only issues handled by England Ministers?
I agree that powers and decisions should not be forced on English communities by MPs who are not affected by the outcomes of their votes. However, I think that there is a case for devolution of the kind that we have seen in the Greater Manchester area to large English authorities—county authorities such as Kent county council, for instance—which should be able to take a strategic lead. My right hon. Friend is right about major infrastructure projects. Local enterprise partnership boards, for instance, are often better placed than someone in Whitehall to know which road and which rail network should be made a priority for funding and investment. Local leadership of that kind is greatly to be welcomed.
(14 years ago)
Commons ChamberThe problem with the stability rules has been that when there should have been interventions or challenges the opportunity has been ducked. That has allowed countries to fudge the rules, has made a shambles of the stability pact and has undoubtedly led to the crisis we face now. It demonstrates something that many hon. Members have known for a very long time: this was primarily a political project and the objective was to get as many countries in as possible and to keep them in whatever the cost, even if the cost was to the member states.
The other point made by the hon. Member for Rhondda (Chris Bryant) was about the concern in member states about whether staying in the euro is good for them or not. Since the December Council we have seen a greater understanding of what staying in the euro will mean. In effect, as my hon. Friend the Member for Stone (Mr Cash) said in his speech, it will mean that the European Commission will decide on budgets for member states, on debt levels and on spending and will enforce measures through the European Court to correct those states if they do not comply. The price of continued membership of the eurozone will then look increasingly high. I believe that might lead some countries to question whether to stay in—or, perhaps, the markets will make that decision for them. No doubt the events of the next few months will give us a good idea of how that will play out.
The challenge is for Europe not to continue as a fortress Europe, but, instead, to be a market Europe that looks to open itself up to the world. That is the best thing for its competitiveness and prosperity and for the future of all its citizens.
This month, the European Council published “The European Council in 2011” , which looks back at the previous year. The President of the Council, Mr Van Rompuy, said that
“we can draw confidence from the political will we mustered in the past year”.
I am glad that one person in Europe draws confidence from the political will mustered by the European Council, because I think most people see a failure of leadership and a great deal of concern about the effectiveness of that body to lead in the future.
In the same chapter of the book, which is entitled “The road ahead”, Mr Van Rompuy goes on to say:
“The key for the future is to harness the forces of change.”
I believe that is right: Europe needs to harness the forces of change. That requires a change of direction, however, rather than acceleration down the old worn path, which is where it is heading.
The document also states that the level of economic integration—in effect, the creation of a common economic policy—will remain high on the agenda for the European Council this year. It states:
“‘Member States shall regard their economic policies as a matter of common concern’. In 2012, we will further examine a deepening of our economic union, a subject on which I will report to the March European Council.”
It goes on to say:
“We must demonstrate that the euro is more than a currency: an irreversible project, a common destiny.”
That underlines the concerns that many of us have had for some time that the leaders of the European Council and leaders in Europe have been blinded by the political objectives behind the euro to whether it is truly sustainable for those countries.
Hon. Members have already remarked that trade is an important part of our membership of the European Union and that half of our trade is with the EU. That is true, but UK trade figures for the past 10 years show that the growth comes from trade not with the member states of the European Union but with the emerging consumer markets around the world, in Brazil, Russia, China and India. That is common in countries such as Germany, too, because as the world economy grows and there are more consumers, we need to be in the market competing for their goods and services.
Does my hon. Friend recognise that because of the Rotterdam entrepot effect of goods going through that port to other parts of the world and because of large service exports to non-EU countries, the true figure is under a third? It is nowhere near half.
I thank my right hon. Friend for that important contribution. It follows my point that the future of our trade and growth will increasingly lie beyond the borders of the EU and not solely within it. That should not make us any less European; we must simply recognise that the world economy is growing, that it is growing outside the EU and that those economies are increasingly competitive. They have more consumers with more money in their pockets and more demand for the products we can sell. Our challenge, and that for Europe, is to make ourselves open to those markets. Rather than having European rules and regulations, particularly on social and environmental law, that seek to add costs and make us less competitive, we should review them and consider whether they are truly fit for the modern world in which we live. That would give us the chance to compete in this more competitive and growing global economy.
That is the crisis that Europe faces as it reaches its crossroads. Its rules and regulations have created a union that is less competitive than it should be and more weighed down with debt. Currency union has not supported the weaker countries but has emboldened and added weight to the strength of those already strong economies, such as Germany. Those fundamental issues must be addressed as Europe faces its crisis. I believe that they are the issues that the Council must tackle. It will require a more flexible and open Europe in which, I believe, the UK can act as a fellow traveller, setting the course of direction. We must be very clear that if Europe will not move and will not change, we cannot afford to be held back by it.