UK’s Development Work (Girls and Women)

Debate between Anne Begg and Justine Greening

Thursday 7th March 2013 Commons Chamber

[Justine Greening]

In short, I agree with my hon. Friend. Some of the most courageous people I have met during my time in this role were the women I met when I went to Afghanistan at the end of last year. They are amazing women who are literally putting their lives on the line to stand up for women’s rights in Afghanistan. They should be supported in doing that, which is precisely why I believe it is now time to make this issue a more strategic priority in the work DFID does in Afghanistan.

[Dame Anne Begg (Aberdeen South) (Lab)]

Last Friday I took part in an event at Aberdeen university which showed a moving film called “Sister”, which highlighted the reality for pregnant women in developing countries. The film was a graphic demonstration of why millennium development goal 5, on maternal health, is still some way from being met. What action are the Government taking to improve maternal health in developing countries and increase the survival rates of women and their babies?

[Justine Greening]

Interestingly, in spite of all the progress that has been mentioned, there is a huge issue, with issues in childbirth and pregnancy still representing the largest reason for death among girls aged 15 to 19 in developing countries. We are addressing that through a range of health interventions in many programmes, but also through family planning, as I have said, and, critically, education. We know that the better educated women become, particularly if they not only get to primary school, but go on to secondary school, the later they start their families and the healthier those families will be. However, there is still a huge amount of work to be done in this area, and that is what we are getting on with.

Finance (No. 3) Bill

Debate between Anne Begg and Justine Greening

Tuesday 3rd May 2011 Commons Chamber

[Justine Greening]

Realistically, it is not always possible to discuss rate changes with the industries concerned. It is not done as a matter of course, but the point about working with the industry to ensure that we understand the impact on more marginal investments is valid, and that is precisely what we are doing.

The clause increases the rate of the supplementary charge, which is a tax on the profits of oil and gas production, from 20% to 32% from 24 March this year. It is fair to point out that oil prices have increased from $77 a barrel at the time of the June 2010 Budget to about $125 a barrel today.

[Dame Anne Begg]

Plenty of other companies and industries deal in commodities whose prices go up, and plenty of other companies and industries make huge profits, but can the Economic Secretary name one other industry where the marginal rate of tax is 81%?

[Justine Greening]

The point is that we faced an increase in oil prices that had fed through pretty directly to pump prices. The increase in the cost of fuel was not just impacting on motorists, but having a huge impact on hauliers, on the cost of living and on businesses. We had to decide what was the right thing to do. I think that the right and fair thing to do was to share the burden by taking some of the additional profits that oil companies were making—profits at a level that far exceeded the projections of the companies when they made those investments. I will come on to answer the question from the hon. Member for Bishop Auckland (Helen Goodman) about projected future investment. I will give a telling statistic that makes my point very well.

We expect pre-tax profits from oil and gas production in the UK to be £24 billion in the current tax year, which is a 50% increase in just two years, primarily as a result of the increased oil price. Oil companies can afford to pay a bit more, but hard-pressed motorists, hauliers and businesses deserve to pay less.

[Justine Greening]

We have just agreed to clause 19 without either the Scottish National party or the Labour party having divided the House. If we are willing to accept the cost of the motoring package in clause 19, which I think we all accept was badly needed to support motorists, hauliers and businesses, we also have to accept some responsibility for putting in place a way of funding it. Clause 7 is how we will do that.

[Dame Anne Begg]

Will the Economic Secretary give way?

[Justine Greening]

Let me make a bit more progress, because Members have raised some real concerns and I want to ensure that I respond.

The Government recognise that we need to act as a good custodian of the UK’s natural mineral wealth; at the same time, we need to manage a tax regime that tailors the level of tax to the level of profits available from the UK continental shelf. The UK’s oil and gas reserves are a finite resource that belongs to the nation. Current oil production was not sanctioned on the basis of the high prices from which the industry benefits today. Those unexpectedly high prices and profits have arisen due to geopolitical events in the middle east and north Africa, as we have heard, and the Government must ensure that they secure a fair return for the UK taxpayer, particularly given the impact that oil prices are having on the broader economy outside the oil and gas exploration industry.