Bill Esterson
Main Page: Bill Esterson (Labour - Sefton Central)Department Debates - View all Bill Esterson's debates with the Cabinet Office
(11 years ago)
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Mr Wright
I absolutely agree with my hon. Friend. The devil will be in the detail, but I hope that we can make amends. It is only 10 days or so since we commemorated workers memorial day, when we resolved to remember the dead and fight for the living. The proposed legislation is an important part of that, and I hope that compensation, fairness and justice will be provided.
Bill Esterson (Sefton Central) (Lab)
I agree with my hon. Friend that the issue is of great importance, and it is good to see the Government bringing forward such legislation. Not long ago, I received a letter from AXA trumpeting the work that it and the Association of British Insurers have done. Will my hon. Friend join me in impressing on the Government that the approach of the ABI will be incredibly important, and that the Government must not listen just to the insurers when dealing with this very important issue?
Simon Hughes
I voted for the income tax changes as a package that took many people on low and medium incomes out of tax altogether as a result of the raising of the tax threshold, and only when I was satisfied that people on very high earnings would pay more net. Yes, they had a reduction last month in their top rate of income tax from 50p to 45p in the pound, but with all the other changes that affect them they will make a bigger total contribution to the economy in tax. The hon. Lady knows what I am going to say next. I was here for all the time of the Labour Government, when for every single month apart from the last few weeks the top rate of tax was 40%—not 50%, not 45%, but 40%. The great socialist regime of Tony Blair and the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown) did not deliver the great socialist nirvana, and that was the time when people in the banks were earning obscene amounts, the likes of which had never been earned before, and they were not dealt with.
On the welfare cuts, the Liberal Democrats argued strongly in the coalition that benefits should not be cut, but that with some inflation-lined exceptions there should be a limited increase this year of 1%. That is what the Government have tried to do. There are exemptions. Changes to housing benefit should not apply to any pensioner householder in the country. Some rates of increase of benefit for people with disabilities are higher than 1% to try to achieve equity. These are all attempts to deal with a welfare bill that is extremely high. It is not pleasant and I do not pretend that it is easy. We would all like to be able to give much more to people who are struggling, and I am very concerned that the bottom 20% should be the priority of this Government in their remaining two years. From the hon. Lady’s Front-Bench colleagues I have heard no answers as to how we pay our bills, deal with the fact that we are paying 120 million quid a day in interest on our debts, sustain the welfare state and encourage people back into work.
Bill Esterson
The Institute for Fiscal Studies is clear that the lowest 20% of income groups are being hammered by the Government’s various changes. How can the right hon. Gentleman justify disabled people being hit, as they have been, by a combination of the bedroom tax, the council tax localisation scheme, work capability assessments followed by their appeal, and having their benefit cut during that lengthy process?
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. We are now on 17 minutes. I was working on speeches lasting no longer than 16 minutes per Member.
Bill Esterson (Sefton Central) (Lab)
It is always interesting to listen to the hon. Member for Lichfield (Michael Fabricant). I can only imagine what it would be like if he really disagreed with the Government: the vehemence of his attack would be something to behold. He made some good points about the impact of the HS2 project and the need to speed it up, as did his neighbour the hon. Member for Tamworth (Christopher Pincher). Speeding up the construction would help the economy, and the blight point was also well made. I live very near to the route of HS1, and that will drag on and on. One of the lessons of HS1 that should be applied to HS2 is the need to deal with blight as speedily as possible.
This feels a bit like speaking in an Adjournment debate. Indeed, I have seen more Members present in the Chamber during Adjournment debates. That may be an indication of the thinness of the fare before us, which may be more worthy of an Adjournment debate. Perhaps that says it all.
I want to discuss the way in which the Queen’s Speech will affect my constituents, and mention some of the proposals that it might have contained which would have affected them far more. Before I do so, however, let me say that I heard the right hon. Member for Sutton Coldfield (Mr Mitchell) come out with the usual Government line about politicians racking up debt around the world. He mentioned his business background and referred to the need for not just cost-cutting but top-line investment. However, he conveniently neglected to mention the role of the banks around the world in contributing to the financial crisis, and the fact that they lent money to people who could not repay it.
The business analogy illustrates the importance of investment. Without investment, business cannot succeed. Similarly, it is the Government’s role to invest in economies, because that is what Governments are there for. When things are tough and there is no one else to invest to stimulate the economy, Governments should step in. The Queen’s Speech did refer to the creation of jobs and growth, but there was precious little to back that up and explain how it would happen.
Let me say something about the Government-backed mortgage scheme, which, it is said, is designed to help people to own their own homes. My hon. Friend the Member for Glasgow North (Ann McKechin) accurately described the current state of the housing market and the problems that exist not just in her constituency, but all over the country. She spoke of the lack of affordable housing, social housing to rent, and low-cost housing to part-rent-part-buy or to buy outright. Developers want to build the most expensive housing they can, because, of course, they want to make as much money as possible. It is no coincidence that over the years about 2 million houses have been sold under the right to buy and we have a shortage of about 2 million affordable homes. We unquestionably have a housing shortage, and according to the Homes and Communities Agency, affordable housing starts collapsed by 68% in the financial year 2011-12. We have seen an increase in homelessness and rough-sleeping, which is particularly affecting families and children.
A proposal that is designed to underwrite mortgages will help the wealthy because it is for new-builds and more expensive housing, but will it help the housing shortage? If it is designed to help the poorest and tackle the shortage of social housing by moving the market further up, is not that use of Government-backed mortgages one of the reasons why we ended up in a financial crisis in the first place? We all remember Northern Rock and 125% mortgages in this country. It is not just me who says this. My hon. Friend the Member for Glasgow North quoted a number of sources, including the Treasury Committee, commenting on the danger of inflating the housing bubble again and the danger of leaving people, at all levels in the housing market, sooner or later unable to pay, with all the consequences of that, which are still going through the financial system now.
Rising prices are another consequence of having a limited supply of housing, which can put housing out of reach for many, or put people into a false, unaffordable state of ownership. On 20 March, The Daily Telegraph said:
“Given the over-dependence of the British economy on the housing market, it is hardly surprising that Mr Osborne has looked in this direction for salvation. But we question whether it is sensible for the state to enter into the mortgage market in this way. It will do nothing to rebalance the economy, and risks stoking another housing bubble. In addition, even though interest rates will probably remain low, it is dangerous to encourage people to buy who might be vulnerable to an increase in lending costs and negative equity.”
As my hon. Friends have said, there is a housing problem and we need to build affordable homes. We must consider the impact building homes would have on the construction sector, the economy and jobs. There is also a lack of investment in the existing stock of empty homes, which the construction industry is keen to see addressed, hence the calls for a cut in VAT on renovation of property to 5%.
The right hon. Member for Ross, Skye and Lochaber (Mr Kennedy) mentioned the International Monetary Fund visit, and IMF chief economist Olivier Blanchard said:
“We said that if things look bad at the beginning of 2013—which they do—then there should be a reassessment of fiscal policy. We still believe that. You have a budget coming in March and we think that would be a good time to take stock and make some adjustments.”
The Budget did not do that. We did not see the kind of moves on housing that I have just described, and we have not seen that in today’s announced measures either.
Sadly, the Chancellor chose to ignore the advice and plough on regardless, and no doubt he will stick to that when he meets the IMF this week. I heard calls for him to ignore any advice from the IMF and to carry on regardless, but for my constituents that would mean more austerity. It would mean more pain for hard-working families, for disabled people and for those desperately trying to find work where only zero-hour or part-time, low-paid jobs are on offer.
There was no vision in today’s announcements for the long-term either. There was no suggestion of how the economy might grow so that public borrowing could finally be reduced, and there was no answer to the question of why the Chancellor said the credit rating was the most important factor on which he should be judged. Many Government Members want deeper spending cuts, but just a few weeks ago thousands of people earning more than £150,000 a year, including many millionaires, were given what their friends in government had promised them, which amounted to £100,000 each year to anyone earning £1 million a year.
At the same time, our constituents paid for that through the bedroom tax and in cuts in support for those in work and those looking for work. While the wealthiest in our society have enjoyed the benefits of a handout from the Chancellor, millions of people are wondering how to pay the bills, put food on the table and heat their homes. It is no surprise that 350,000 people are using food banks, according to the latest figures from the Trussell Trust—and that is before the bedroom tax, the council tax localisation scheme and other attacks on the poorest have really started to bite. At least 30% of those in social housing will be affected by the bedroom tax, and offering discretionary payments is simply not good enough. The housing associations and local authorities in my area have already found that that money does not go anywhere near far enough. People are facing real hardship, and the measure has only just been introduced.
Two of my constituents have told me of their circumstances. A man who has been disabled for 12 years was recently declared fit for work in his work capability assessment, despite having a degenerative disease. He is appealing, but while he does so he loses £25 a week; at the same time, the bedroom tax on his spare room is £14.71 a week and he has to pay £34 in council tax that he has not had to find before, because the council tax benefit is not at the same level it was before last month’s reforms. It all adds up to more than £200 a month for a disabled man who is unable to work and his family. We have heard from other Members about the difficulty disabled people have in finding work—they genuinely want to work, but there are not the jobs for them, and when they go to interview people will not take them on.
The other constituent is a lady who has spina bifida. She passed her work capability assessment, but one question a medically trained member of the Atos staff asked was, “How long have you had this condition?” The idea that someone who is medically trained did not understand what spina bifida was, or its consequences, is deeply troubling for everyone. That sums up some of the problems that people face. My constituent also now has to pay council tax for the first time. She used to work, but when she goes for an interview now people take one look at her and say, “No, I’m sorry, we can’t employ you”, because they assume that it will be difficult for someone with spina bifida to do the work that she has applied for, although she is extremely well qualified. She has no choice but to pay the extra money in council tax, if she can find the money from somewhere. I keep meeting people who have been disadvantaged by the benefit changes. At the same time, we see people at the top doing very nicely out of some of the changes the Government have introduced. Nothing in today’s announcements was encouraging for people looking for work and people who are disabled—people who desperately want to work.
We have heard about the attacks on the people in most need, but a number of colleagues have also mentioned the necessity of support for business. Where is the support for manufacturing to help our flatlining economy and our businesses and to create the full-time, well-paid jobs that people need? Why was there not an announcement about a national investment bank and the regional banks to go alongside it—the kind of support that is needed, which we could have done with desperately many years ago?
Some measures have helped the economy in my constituency. When the Government took office in 2010, however, they scrapped Building Schools for the Future, and that had a profound effect up and down the country. With school building programmes not going ahead, the construction industry and the economy as a whole were hugely affected. One school in my constituency, Aintree Davenhill, was in the primary capital programme. The children at that school used to have lessons in disused aircraft hangars made of corrugated iron. As one can imagine, it was boiling hot in summer and freezing cold in winter, and it certainly was not an ideal teaching and learning environment. The previous Government had approved funding, but whereas phase 1—the infants part of the school—had been completed, phase 2 had not been. When the current Government came into office, they stopped the funding for phase 2. Fortunately, Sefton council, which had sufficient capital in reserve for a primary school, stepped in to fund the rest of the project. I was lucky enough to go to the opening two weeks ago of the brand new school, which is a fantastic tribute to everybody who has worked on the project.
Investment in a primary school, however, makes only a very small contribution to the economy. Much more investment was needed, because the construction industry has wound down, hundreds of thousands of construction workers have been laid off, and businesses have closed. It will take time for any announcements now about construction to build the industry back up.
Another project that I am pleased to see in my constituency is the building of the Thornton relief road. It is a £30 million project. It was first proposed in 1934, and I have mentioned it many times in this Chamber since being elected. The building of the road was finally achieved by a combination of Government and local government funding, but it should have been approved three years ago. The previous Government had given the green light to the scheme, but it was also cancelled, and three years of lack of investment and economic stimulus resulted, as with the cancellation of the Building Schools for the Future programme.
We need urgency from the Government, and we did not see that today. The hon. Member for Lichfield mentioned the High Speed 2 project, and he is right that it will make a huge contribution to the economy, but if it is delayed for many years, we will not see the economic benefits now when they are most needed.
Michael Fabricant
I forgot to mention that the Birmingham Chamber of Commerce Group has said that one good thing that can come out of HS2 is the construction of lines and carriages, providing that that work goes to British companies. I will be asking the Department for Transport to ensure that it does.
Bill Esterson
I am grateful to the hon. Gentleman for mentioning the importance of using British manufacturing companies for projects in this country. I will mention Bombardier, and the cancellation of the project at the Derby works—a project that went to Siemens—as an example of where our policy was wrong. We must get that sort of thing right—
Bill Esterson
I am glad that that the hon. Gentleman is nodding. German contracts are let to German companies—there are ways of writing contracts that favour them, and this country must get better at that in relation to our companies.
I mentioned the construction sector and two projects in my constituency. This country should ensure that the supply chain supports local subcontractors and local labour, and that should be written into contracts far more often.
Bill Esterson
I am glad to see the Minister nod in agreement to that point. This is about supporting the local economy, which can happen only if we prioritise using local subcontractors and their staff. There are always ways of doing that.
I have made the point about the importance of investment in the economy. There was not enough in the measures announced in the Queen’s Speech—frankly, there was precious little—to support the economy and to get the growth we need. Ultimately, to get the deficit down, we must have growth. We must have the investment now; it will not wait. We have had three years of delay. We need immediate investment in construction, in housing and in the kind of projects that we have been discussing in the past hour or so. It is also important that we consider the measures that my right hon. Friend the Leader of the Opposition and the shadow Chancellor, my right hon. Friend the Member for Morley and Outwood (Ed Balls), are proposing on VAT and support for small business.
I will make a final plug for small business. I ran a small business for 15 years and many small businesses in my constituency—not only in construction, but throughout the economy—need growth and the support of Government investment to succeed. Small businesses will create the jobs; they will be the key drivers of the economic recovery that we desperately need. It is no good lending going just to the medium-sized and large companies that are already financially successful and have lots of money in reserve. There must be proper support for the smallest of businesses, and I urge the Government to take that point on board as well as the other points that I have made about investing in the economy.
Dr Wollaston
Yes, indeed. They say in the south-west that if one can see across the valley, it is about to rain, and if one cannot see across the valley, it is raining already.
Having expressed those reservations about HS2, I welcome almost everything else within the Gracious Speech. My principal point is about the draft care and support Bill. To see that Bill finally being introduced in this Session of Parliament is very welcome. I remember well the shock and horror of many of my former patients when they realised that if they had assets above the threshold of £23,250, they would receive absolutely no support with their care needs. We know that one in 10 families face losing more than £100,000 of their income just to care for a relative, and that very many people end up having to sell their homes to pay for their care needs. So, such a massive increase in the asset threshold and a cap on lifetime costs is very welcome, particularly because those measures will encourage people to come forward at an earlier stage to seek the help that they need. In turn, that will help to reduce unnecessary admissions as well as helping people to remain as independent as possible for as long as possible.
Of course, the Bill will introduce support and proper assessments for carers, not only for adult and elderly carers but for child carers, who suffer and are robbed of so much of their youth as a result of their caring responsibilities. I am looking forward to seeing the detail in the Bill, and I very much enjoyed being part of the Joint Committee on the draft Bill that made recommendations to the Government; I hope that many of those recommendations will be included in the Bill when it is placed before Parliament.
I also particularly welcome the fact that there will be compensation for the victims of mesothelioma who cannot trace an employer and for those whose employer has gone out of business, or who do not have any insurance. It is particularly cruel that they receive no access to any compensation, despite mesothelioma being almost entirely attributable to asbestos exposure. But, and this is a big but, how ironic that while providing fairness and support for one type of lung cancer we are failing in this Queen’s Speech to address preventing a far more common type of lung cancer—failing to address how we are going to stop the next generation of smokers coming on stream. We should bear in mind that every year 200,000 children take up smoking. Those children will be at risk of going on to face a lifetime of problems. We know that 100,000 people a year at least are dying as a result of smoking-related problems. The failure to take forward plain packaging is a huge missed opportunity.
I want to clarify one thing: there is nothing plain about so-called plain packaging. I would encourage everyone to google what plain packaging looks like. Plain packaging sets out very clearly what is involved. It sets out the disease and suffering that people will face if they do not address their smoking. My experience as a doctor was not so much that people feared the thought of death, but that they most feared the process of dying. The process of dying from many smoking-related illnesses is hideous. We are not just talking about lung cancer. We are talking about, for many people, the years spent in a kind of living death, tied to an oxygen cylinder, suffering from end-stage chronic obstructive pulmonary disease and many other conditions; or the suffering that comes from needlessly losing a leg from arterial disease. Smoking is a leading cause of blindness. There are many effects of smoking—all entirely preventable. So-called plain packs spell that out graphically, and to anyone who hands around such a pack, it is quite beyond a simple public health message. It is a very graphic message.
Bill Esterson
I welcome what the hon. Lady says about plain packaging. In the Committee stage of the Children and Families Bill, I and a number of Members tabled an amendment about banning smoking in cars with children present. I wonder whether she would agree that we hope that the Government will bring back their own version of that amendment in good time.
Dr Wollaston
I thank the hon. Gentleman for his intervention. Indeed, this is about protecting children, and that is what we should focus on. It is not about introducing a nanny state. The so-called plain packs would not necessarily change the habits of a committed lifetime smoker, but they are aimed predominantly at deterring the next generation. I feel this is a missed opportunity, and I very much hope that as further evidence emerges from Australia, the Government will reconsider their position and send a very sensible public health message.
Many Members have commented that the Gracious Speech is not just about setting out what legislation will be introduced; it is about sending a message on the direction of travel. My very clear view is that Government’s core business does include public health. Members know that I feel strongly about minimum pricing for alcohol. I am not trying to be the nation’s supernanny here— I enjoy a drink myself. This is about trying to get rid of ultra-cheap alcohol.
In my part of the country, we have shops that sell white cider with a maximum price. They are not allowed to sell it for over 23p a unit. I am afraid that is causing carnage. We have recently seen deaths of rough sleepers in my community, and rough sleeping is very closely associated with dependency. We know that as people start to lose control of their drinking, they start to target cheaper and cheaper alcohol. We know that the heaviest drinkers spend 40% less per unit on their alcohol. Just as with the smoking issue, this is not necessarily about saying that it is always possible to save everyone who has become a dependent drinker. We know that 40% of dependent drinkers will, whatever happens, be unable to control their drinking and will lose their life as a result of their dependency. It is about trying to help those who are starting to lose control of their drinking. It is about helping those who are right at the beginning of the journey, who may have developed a harmful pattern of binge-drinking.
The argument goes beyond the public health message and towards what alcohol dependency is doing to our communities. We know, for example, that there are 705,000 children in this country living with a dependent drinker—not just a hazardous drinker or a harmful drinker, but somebody who is dependent on alcohol. We also know that in 40% of child protection cases, alcohol is a key part of the problem. We know that nearly half of all violent crime is partly attributable to alcohol, as I know from my experience of seeing victims of crime and domestic violence. We know that a huge number of those who are victims of domestic violence report that alcohol directly caused or significantly worsened that violence.
We know that about a third of people feel that their town centres have become no-go areas to them at the weekend, and we know that all of us are paying for that. It costs us a staggering amount—about £21 billion a year just within our health service. I welcome the suggestion from the Secretary of State for Health that members of the Front-Bench team should spend time on work experience, and I suggest that suitable work experience for all members of the Front-Bench team would be a Friday night in casualty. If they really want to see what is causing delays in casualty departments at the weekend, they need look no further. Perhaps they would like to go out with the special constables in my area, who tell me that all their time at the weekend is spent dealing with alcohol-related crime and violence.
The final point that I would like to make about the subject is that it is an important cause of health inequality. To all those who say that minimum pricing penalises the poor, I would say that it is the poor who are suffering the most as a result of ultra-cheap alcohol. There are many reasons why we need to address the problem. If alcohol harmed only the individual who was drinking, that would be purely a matter of personal choice, but the wider harm is caused by the ripples that spread out from the individual who is losing control of their drinking, affecting those closest to them, their wider family and their community. So there are good reasons for saying that this is fundamental and core Government business.
I feel very disappointed that such a well-evidenced measure has been dropped from the agenda. It is not good enough to say, “We have not made a decision.” Continually kicking a ball down the road can, in effect, be the same thing as dropping it altogether. I hope that alcohol-related measures come back as “any other business” within the legislative programme.
I call on the Government particularly to look at the emerging evidence from Canada. Apart from the myth from the alcohol industry that such measures would make alcohol unaffordable, which is not the case, other myths are perpetuated. We need to challenge those. What we have seen clearly from states in Canada that have introduced a floor price is that following a 10% rise in the floor price there is a 32% reduction in deaths directly caused by alcohol. That is important evidence. There has also been a decrease in alcohol-related hospital admissions. Let us look at the evidence and have evidence-based policy, rather than listening to the power of lobbyists. It is vital that we look at the power of the alcohol lobby and the way that that operates at the heart of Government. I would like to see a register of lobbyists. I would like to see transparency about who is calling the shots when it comes to forming policy.
I sometimes get a little flack for using social media—surely not, Members might think—but if we look at the Chamber now, which of course is where Members of Parliament should be, we might consider that Twitter can reach parts that other tools cannot. In particular, if we look at the tools that others use, and at the power of the lobbying industry, we will see that MPs need to use every tool at their disposal to fight for the causes they believe in. Public health is fundamental to why I applied to be in this place in the first place, and it is fundamentally Government business. We should look at the evidence.