Oral Answers to Questions

Edward Miliband Excerpts

Wednesday 19th October 2011 Commons Chamber

[The Prime Minister]

I commend my hon. Friend for his question, because a number of universities in our country—including Edinburgh, which I have visited—are leaders in marine renewable energy. My right hon. Friend the Energy and Climate Change Secretary yesterday announced that we will go ahead with renewables obligation certificates, ensuring that we boost that vital industry and attract jobs to this country for offshore wind and other renewable technologies.

[Edward Miliband (Doncaster North) (Lab)]

May I join the Prime Minister in paying tribute to Rifleman Vijay Rai from 2nd Battalion The Royal Gurkha Rifles? In joining the Army, he was following in a proud family tradition. He showed the utmost courage and bravery, and our deepest condolences are with his family and friends.

The revelations over the past week about what has been going on in the most sensitive Department at the heart of the Prime Minister’s Government are deeply worrying. The former Defence Secretary had an unofficial adviser with access to top officials in the military and, indeed, in foreign Governments, who was funded by undeclared private donations solicited by him, yet the Prime Minister says that he and No. 10 knew nothing about these goings-on for 18 months. How did he allow this to happen?

[The Prime Minister]

First, I agree with the right hon. Gentleman that this is an important and serious issue, which is why I set up a full and proper inquiry by the Cabinet Secretary. He has produced his report, and it has been published in full. It is worth noting, however, that in this case the Secretary of State for Defence recognised that he had made a mistake, acknowledged that had broken the ministerial code and resigned. That was not something that always happened in the previous 13 years.

[Edward Miliband]

I have a piece of advice for the Prime Minister: this week of all weeks, show a bit of humility, eh? The truth is that we still do not know the full facts about this case, about the money trail and about who exactly in the Government met Mr Werritty. It is becoming clear that there is a network of individuals, some with close links to the Conservative party and other Cabinet members, who funded Mr Werritty. Given that the Prime Minister says that he knew nothing about the former Defence Secretary’s arrangements, can he give the House a categorical guarantee that over the past 18 months no other Minister has been engaging in similar activities?

[The Prime Minister]

I think that we should have a little humility from the people who gave us cabs for hire, passports for favours, mortgages for mates, dodgy dossiers, the smearing of opponents and good days to bury bad news. I note that these were the questions that the right hon. Gentleman was meant to ask last week. I have some advice for him: if he is going to jump on a bandwagon, make sure it is still moving.

[Edward Miliband]

The Prime Minister has no answer to the question that people want answered. We have seen a pattern of activity from him: he does not ask the tough questions of those around him, and when anything goes wrong, it is nothing to do with him. What did he say in the ministerial code that he published? He said:

“It is not enough simply to make a difference. We must be different.”

In the past three months, we have seen his Defence Secretary resign in disgrace and his spin doctor arrested. Is that what he meant by being different?

[The Prime Minister]

The right hon. Gentleman seems to have failed to notice that the Minister in question has resigned—you’re just a bit late.

--- Later in debate ---

[The Prime Minister]

I am very pleased to do that. I am a huge fan of Help for Heroes. The way the charity has grown has been a remarkable story. I have seen for myself the extraordinary efforts that it has made at Headley Court, where it has built an extraordinary swimming pool that is used by so many people who are recovering from their injuries in Afghanistan and elsewhere. I would certainly be pleased to support what my hon. Friend says.

[Edward Miliband]

Last week we heard that unemployment was at its highest level since the last Conservative Government. This week we heard that retail price inflation was at its highest level since the last Conservative Government. Does the Prime Minister still think that his plan is working?

[The Prime Minister]

To put the right hon. Gentleman right, the last time that CPI—which is the measure of inflation that we all now recognise—was as high as this was in 2008, when he was in government. That is quite an important point to note. Of course inflation is too high. The principal reasons for it being so high are world food prices, world fuel prices, the depreciation of sterling—[Hon. Members: “VAT.”] Yes, there was an effect from the increase in VAT, just as there was an effect when he increased VAT at the beginning of 2010, but the reason for increasing VAT is to get on top of the record deficit that the last Government left.

[Edward Miliband]

As always, the Prime Minister says that it is just like that in the rest of the world, but we have the highest inflation of any EU country apart from Estonia. That is because of decisions that he made, including the decision on VAT. Week in, week out, the evidence mounts that his plan is not working, but he refuses to change course. Last week, we heard that his flagship national insurance scheme had not worked. Now let me ask him about his flagship regional growth fund, which he launched 16 months ago. Can he tell us how many businesses have had cash paid out to them under the scheme?

[The Prime Minister]

First, let me just put the right hon. Gentleman right on this issue—[Interruption.] It is important. One of the reasons Britain has such a difficult situation with inflation is that we were the country with the biggest boom and the biggest bust of any major European country. He cannot hide from that. The regional growth fund is going to be distributing billions of pounds right across the country, and it is a thoroughly worthwhile scheme that he should be supporting.

[Edward Miliband]

I do not think that the Prime Minister knows the answer. The Government have certainly issued lots of press releases about the regional growth fund—22 of them—but how many businesses have been helped during the past 16 months? Two businesses have been helped. And how many businesses have gone bankrupt in that time? Sixteen thousand. What greater example could there be that this Government’s plan is not working? We have had 18 months of his economic experiment, and what have we got to show for it? More and more people losing their jobs, more and more businesses going bust and inflation going through the roof—and all we have is a Prime Minister who is hopelessly out of touch.

[The Prime Minister]

All the right hon. Gentleman wants to do is talk down the economy, so he will not mention the fact that 300,000 new businesses have started and that 500,000 people have jobs who did not have one at the time of the election. The big question for the right hon. Gentleman is: if he does not like our plan, where is his plan? We now know that his plan to deal with our debts is—[Interruption.]