Budget Resolutions and Economic Situation
Debate between Damian Collins and Brooks Newmark(9 years, 1 month ago)
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Mr Brooks Newmark (Braintree) (Con)
I am delighted to follow the hon. Member for East Antrim (Sammy Wilson), who is a powerful advocate for his region of the United Kingdom. He raised many important points. It has not been a balanced recovery; he is absolutely right. The south has done a little bit better than perhaps Northern Ireland and some of the areas of the north. However, as the Chancellor pointed out during his speech, recoveries are never linear. Sometimes some regions grow faster than others. Sometimes we get recoveries that are slow and then there is a U-bend and suddenly the recovery accelerates a little more. I suspect that what we are seeing now is a little bit of the J-curve—we have had a much slower recovery than we expected, but it is now moving much faster, as we have seen from the Red Book.
Damian Collins (Folkestone and Hythe) (Con)
I wanted to intervene on the hon. Member for East Antrim (Sammy Wilson) but he was reaching his conclusion. Is it not a cause for positive reflection that job creation in Northern Ireland at the end of last year was growing at its fastest rate for more than 20 years? That shows that there has been growth throughout the United Kingdom.
Mr Newmark
My hon. Friend and the hon. Member for East Antrim are both right. The hon. Gentleman’s point was that at the beginning things were a little slower than he would have liked for his constituents, but as he said—this is my point—recoveries are never linear. In the past five years, we have seen slower growth than we would have liked, but we have far more accelerated growth through 2014-15, and certainly beyond to 2016-17 and 2018-19. That is good news.
In 2010, in Labour’s great recession, we faced economic meltdown. As UK plc, we were literally teetering on the brink of bankruptcy. What we needed at that time was an emergency Budget. The Chancellor, working with our coalition partners—I give credit to the Lib Dems—came up with a long-term economic plan. In producing that long-term economic plan, we had to deal with one important issue: the structural deficit. The deficit, which was running at roughly 10.2% of GDP, needed to be dealt with. We particularly needed to deal not just with the general deficit but with the structural deficit, which was an enormous problem in terms of our ability to achieve sustainable borrowing.
That was the challenge posed by the right hon. Member for Wentworth and Dearne (John Healey). He wanted an unsustainable deficit of 10%-plus. Perhaps he meant 12%; perhaps he wanted more borrowing. I do not know what direction of travel he would have liked to take, but if we had gone in that direction, we would have been in France’s position today.
Multiannual Financial Framework
Debate between Damian Collins and Brooks Newmark(11 years, 6 months ago)
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Mr Newmark
If it was the hon. Gentleman and I negotiating, I am sure we could find some realistic efficiencies. The fact is, however, that for the time being—I say this for the benefit of my hon. Friend the Member for Stone (Mr Cash)—we are in something called the European Union. We therefore have to negotiate with more than 25 other countries.
Mr Newmark
No, I think I will proceed.
On the Labour party’s chutzpah and hypocrisy, the hon. Members for Rhondda (Chris Bryant) and for Nottingham East (Chris Leslie) argued for more financial restraint and for looking after taxpayers’ interests, but there was a 47% real-terms increase in the EU budget while Labour was in government. What has suddenly changed their minds? We need not take any lectures from them. Their policies are incoherent, opportunistic and completely lacking in credibility.
That brings me to the nub of the argument: which way will we go? Will we ask the Prime Minister for something that he can achieve, which is a real-terms freeze? That does not mean that he will not do better than that, because I believe he will fight our corner for real-terms cuts. I am sure he is listening to everybody who is fighting for real-terms cuts, or at least to Government Members, but what is his bottom line? What is the red line beyond which we should pull out the veto, which the hon. Member for Nottingham East has not admitted he is willing to use? That red line has to be at least a real-terms freeze. That is what today’s debate is really about.
I ask my right hon. and hon. Friends to consider what message we want to give the Prime Minister. It should be that he should negotiate in the best interests of UK plc. That means fighting for a real-terms cut—I want that, and so do all my right hon. and hon. Friends—but the bottom line should be a real-terms freeze, which I believe is achievable in the negotiations.