Oral Answers to Questions

Danny Alexander Excerpts

Tuesday 8th June 2010 Commons Chamber

[Richard Harrington (Watford) (Con)]

4. If he will estimate Government expenditure on external consultants in (a) 1997 and (b) the last year for which figures are available.

[The Chief Secretary to the Treasury (Danny Alexander)]

Information on 1997 central Government expenditure on external consultancy is not held centrally, but records for 2007-08—the first year for which figures are available—show that spending on external consultants was £773 million in central Departments. In 2008-09 that rose to £1.1 billion for central Departments, or £1.57 billion when the whole of central Government is taken into account. Future expenditure will fall significantly as a result of the freeze on consultancy spending recently announced by the Government.

[Richard Harrington]

I thank my right hon. Friend the Chief Secretary for that answer, and welcome him into the job. He should note that the figures show gross profligacy and a waste of taxpayers’ money that affects everybody in the House, all my constituents in Watford, and everybody in this country. I should very much like the Chief Secretary to assure us that that disgraceful waste of money will not happen again.

[Danny Alexander]

My hon. Friend is right about waste and inefficiency, and consultancy is not the only example. I can give him two or three more. The Department for Business, Innovation and Skills spent £12,000 on branded golf balls over three years. The Ministry of Defence spent £232,000 on eight paintings in a single year. The Department for Communities and Local Government has spent £6,000 on deluxe espresso coffee machines for nine new, but empty, regional fire control rooms. He can rest assured that the actions that we take will ensure that that kind of waste and inefficiency will never happen again.

[Mr Speaker]

Order. I know that the Chief Secretary will want to stick to the narrow subject of external consultants.

[Mr Tom Watson (West Bromwich East) (Lab)]

Is Andy Coulson a consultant? How much are you paying him?

[Danny Alexander]

He works at No. 10 Downing street—[Interruption]—and I will give the hon. Gentleman a full response if he wants one.

[Peter Bottomley (Worthing West) (Con)]

5. What steps his Department is taking to increase economic growth.

--- Later in debate ---

[Charlie Elphicke (Dover) (Con)]

10. What recent assessment he has made of the level of growth in the UK economy compared with those of other OECD countries.

[The Chief Secretary to the Treasury (Danny Alexander)]

The independent Office for Budget Responsibility will publish forecasts for growth in the UK ahead of the emergency Budget.

[Charlie Elphicke]

There is too much deprivation in Dover and Deal. We need more jobs and money locally. What action will the Government take to increase the trend growth rate of this nation, so that the people of Dover and Deal get more jobs and money, and Britain does better?

[Danny Alexander]

The best thing that we can do to increase growth and create jobs in this country is tackle the enormous budget deficit that we inherited from the previous Government. By taking firm action to reduce the deficit, we can restore confidence in the economy and help the private sector to create jobs. That is what we need to do.

[Angela Smith (Penistone and Stocksbridge) (Lab)]

The £80 million loan to Sheffield Forgemasters was an investment designed to encourage the growth of the advanced manufacturing sector of the economy, not just across south Yorkshire but across the UK as a whole. Will the Government bear in mind that investment, and the long-term context, when they make a decision on the future of that loan?

[Danny Alexander]

I am grateful to the hon. Lady for making that point, and I have certainly heard what she said. Obviously, we are reassessing carefully projects approved by the previous Government between 1 January and the election, and we will make an announcement in the near future.

[Mr Mark Williams (Ceredigion) (LD)]

11. What his policy is on the mechanism for the provision of funding from the Exchequer to the devolved Administrations; and if he will make a statement.

[The Chief Secretary to the Treasury (Danny Alexander)]

The Government recognise the concerns expressed by the Holtham commission about the system of devolution funding, but as we made clear in the coalition programme for government, the first priority has to be reducing the deficit.

[Mr Williams]

I thank my right hon. Friend for that answer, and for the acknowledgement in the coalition agreement of the work of the Holtham commission. Its message was that there was historical underfunding of Wales to the tune of £300 million a year; that was backed up by Lord Barnett himself and a Lords Committee. Does my right hon. Friend accept the report’s conclusion that Wales has, historically, been underfunded? We acknowledge that cuts will be borne right across the UK, and across all its regions and nations, but will he use this opportunity to confirm the Government’s commitment to fair funding across the country?

[Danny Alexander]

In the coalition agreement, we say that we recognise the concerns raised by the Holtham commission, but the priority must be to reduce the deficit. We also said that once the forthcoming referendum has taken place, there will be a Calman commission-like process. The Calman commission looked at greater financial accountability for the Scottish Parliament, and a similar process for Wales might help to address some of my hon. Friend’s concerns.

[Anas Sarwar (Glasgow Central) (Lab)]

Will the Chief Secretary please tell us why his party campaigned throughout the election against immediate spending cuts, but is now, in return for jobs in the Cabinet, willing to risk tens of thousands of jobs across the country?

[Danny Alexander]

The hon. Gentleman just needs to look around the world to see that the argument for rapid fiscal consolidation is becoming stronger by the day. He should look at the G20 and the independent assessments. Clearly, making the sort of decisions that we are making now—the £6 billion exercise and the decisions that will no doubt be announced in the Budget—is absolutely essential to create a responsible basis for the public finances and return the country to the right economic track.

[Mr Adrian Sanders (Torbay) (LD)]

16. What steps his Department is taking to reduce the level of tax avoidance.

--- Later in debate ---

[Tom Brake (Carshalton and Wallington) (LD)]

T2. While the Chancellor is reviewing the projects agreed by the previous Government since 1 January, may I commend to him the Better Healthcare Closer to Home programme and the plans that it has for St Helier hospital? May it draw it to his attention that the plans were very enthusiastically endorsed by the new Secretary of State for Health when he visited my constituency just a couple of days before the general election?

[The Chief Secretary to the Treasury (Danny Alexander)]

I am grateful to my hon. Friend for his question and pay tribute to his assiduous campaigning on the issue over many years. He will know that we are carefully reassessing the projects agreed by the previous Government between 1 January and the election, and we will make an announcement shortly. He will also know that it is right that we are making sure that each and every one of the many projects that were announced is affordable and represents value for money.

[Kerry McCarthy (Bristol East) (Lab)]

T5. I was disappointed to see no mention of the credit union movement in the coalition agreement. Although I admit that I have not yet got my head around what the big society is, I hope that there is a role in there for the credit union movement. When can we expect the Legislative Reform (Industrial And Provident Societies and Credit Unions) Order 2010 to be laid before the House?

--- Later in debate ---

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

Growth throughout the UK economy has often been geographically uneven. Has the Chancellor considered what help a rural fuel derogation might bring to the highlands and, in particular, the islands of Scotland; and can I volunteer my own constituency, Na h-Eileanan an Iar, for any pilot project?

[Danny Alexander]

The Government are well aware of the benefits that a rural fuel derogation might bring to remote parts of the economy. We are examining that issue, which is contained in the coalition agreement, and we note the hon. Gentleman’s interests from his own constituency.

[Robert Halfon (Harlow) (Con)]

Under the previous Government, unemployment in Harlow was the highest in west Essex. Do the Government agree that a low-tax, low-debt economy is the best way to bring jobs back to Harlow?

--- Later in debate ---

[Roger Williams (Brecon and Radnorshire) (LD)]

A Select Committee in the other place found that reform of the Barnett formula could lead to a reduction in the budget deficit. In terms of the imperative of achieving that, will not the Treasury team look once again at that Select Committee report?

[Danny Alexander]

I am happy to look at the report, but as I said in answer to earlier questions, we made it clear in the coalition programme for government that, although we recognise those concerns, the priority must be to address the budget deficit, and that is what we are going to do.

[Fiona Mactaggart (Slough) (Lab)]

Will unemployment and inequality increase or decrease in the coming year?

--- Later in debate ---

[Danny Alexander]

A range of announcements will be made in the Budget across a whole range of issues, but as the Chancellor has said repeatedly, one of the key tests of measures is fairness, to ensure that we do not repeat the mistakes of the previous Government in allowing inequality to widen and in missing child poverty targets.

[Gordon Birtwistle (Burnley) (LD)]

Does my right hon. Friend intend to continue using the very expensive PFI funding for future capital investment in the NHS? The most expensive to date has been in Wythenshawe hospital, where the NHS will pay back 16 times the original capital value. More prudent borrowing in the past would have delivered the investment without adding to the deficit.