Oral Answers to Questions

Edward Miliband Excerpts

Wednesday 14th May 2014 Commons Chamber

[The Prime Minister]

I know that my hon. Friend has been fighting very hard, with my hon. Friend the Member for South Thanet (Laura Sandys), about the future of Manston airport and recognises that it has played an important role in the local economy and employed local people. Ultimately, the future of Manston remains the responsibility of the airport owner, but it is important that the Government are engaged, and I know that my right hon. Friend the Transport Secretary is engaged. He will be speaking to Mrs Gloag about this issue and also contacting RiverOak, the potential purchasers. In the end, it has to make a commercial decision, but the Government will do everything they can to help.

[Edward Miliband (Doncaster North) (Lab)]

I welcome the fall in unemployment. For all those people who have found work, it is good for them and good for their families.

On the subject of high-skilled jobs in the UK, following the appearance of Pfizer at the Select Committee yesterday, can the Prime Minister tell us what further assurances he is seeking from Pfizer about its takeover of AstraZeneca?

[The Prime Minister]

First of all, may I welcome the fact that the right hon. Gentleman has welcomed the fall in unemployment? These are, of course, jobs that he predicted would never come to Britain and would never be there. This is important, because what we see today is the largest-ever quarterly increase in the number of people in work—283,000. We see unemployment coming down, youth unemployment coming down, long-term unemployment coming down, and long-term youth unemployment coming down—and of course, in our growing economy, where our long-term economic plan is working, we see the number of vacancies going up. Hon. Members may be interested to know, in addition, that three quarters of the new jobs over the last year have gone to UK nationals, and also that the employment of Romanians and Bulgarians actually went down in the first three months of this year following the lifting of the controls, which is notable.

In terms of Pfizer and AstraZeneca, this Government have been absolutely clear that the right thing to do is to get stuck in to seek the best possible guarantees on British jobs, British investment and British science. We discussed this last week and one of the most important things we have learned since then is that the right hon. Gentleman was asked for a meeting with Pfizer, but he said he was too busy political campaigning. He quite literally put party politics ahead of the national interest.

[Edward Miliband]

I am not going to take any lectures from the guy who was negotiating with Pfizer over the heads of the board of AstraZeneca. Pfizer does not need a public relations man—it has the Prime Minister.

For Members on both sides of the House, the appearance of Pfizer at a Select Committee raised more questions than it answered about the so-called assurances. The head of Pfizer said there would be a fall in research and development spending as a result of the takeover. Has the Prime Minister got an assurance that those R and D cuts will not take place in the UK?

[The Prime Minister]

We want the strongest possible guarantees, but I have to ask the right hon. Gentleman: what is the way of getting those guarantees? Is it getting stuck in with Pfizer and AstraZeneca, battling for the British interest, or is it standing back like him, doing absolutely nothing apart from playing politics? That is the point I put to him. I am clear about what the British interest is: it is British jobs, British science and British R and D, and we will do everything we can to make those guarantees that we have received—the right hon. Gentleman would have got nothing—as firm as possible. As we do so, let us remember that 175,000 people are employed in the life sciences in our country, because we are an open economy that encourages investment. Eli Lilly, Novartis, Johnson & Johnson and e Sci have chosen to come and invest here because it is a great country to come and do business.

[Edward Miliband]

The problem is that the assurances are “vague”, have “caveats” and are “inappropriate”. Those are not my words, but the words of the president of the Royal Society. The assurances are useless and there is no guarantee on R and D.

Let us talk about jobs. The head of Pfizer said yesterday:

“There will be job cuts somewhere”.

Has the Prime Minister got an assurance that those job cuts will not take place in the UK?

[The Prime Minister]

We have assurances on the percentage of R and D that will happen here and on investment in Cambridge and in Macclesfield. If the right hon. Gentleman is asking whether we want further assurances, then yes, we do. Do we want to make sure those jobs stay here? Yes, we do. Do we want more investment in British universities and British science? Yes, we do. The only difference between us is on how to get those things. I say: get stuck in, negotiate hard and fight for Britain. He says: stand up, play politics and put that before the national interest.

[Edward Miliband]

But the Prime Minister’s negotiations are not working—they are worthless. On R and D and jobs, he has no answer.

Let us try the Prime Minister on another issue: the possible carving up of the merged company. Nobody wants the company to be bought, split up and then sold off. Has he got assurances that that will not happen in the case of this takeover?

[The Prime Minister]

What we want is a good outcome for British investment and British jobs. We know what happens if you take the approach of the Labour party. Let us remember Kraft and Cadbury. What did we have? We had outright opposition, wonderful speeches about blocking investment and then complete and abject surrender and the closure of plants under Labour. That is what happened. We have learned the lessons of the mistakes Labour made. We are operating under the framework that it left us—which, incidentally, the right hon. Gentleman wrote when he was at the Treasury—and we will get results for British science, British jobs and investment by being engaged rather than standing off and playing politics.

[Edward Miliband]

We all know what happened the last time the Prime Minister got assurances: he sold off Royal Mail at a knock-down price and the Chancellor’s best man made a killing. That is what happens with the Prime Minister’s assurances.

The truth is that the Prime Minister cannot give us a guarantee, because the chief executive says that he wants to “conserve the optionality” of splitting up the company and flogging it off. Last week, the Prime Minister said he would judge the takeover on

“British jobs, British investment and British science.”—[Official Report, 7 May 2014; Vol. 580, c. 146.]

But he cannot offer us assurances on any of those things. Is it not obvious—he should have a proper test of the public interest, and if the deal does not pass, he should block it?

[The Prime Minister]

Once again, the right hon. Gentleman raises this issue about the public interest test. It is worth asking which party, which Government and indeed which individual, when he was sitting in the Treasury writing the rules, got rid of that test. It was the right hon. Gentleman. That is what we see: on a day when unemployment is down, on a day when more people are in work, he will try any trick other than to talk about what is happening in our economy. That is the truth. The country is getting stronger, and he is getting weaker.

[Edward Miliband]

The Prime Minister might not think it important to talk about a company that is 2% of UK exports and on which 30,000 jobs depend. It is important: it is crucial to our national interest. The truth is that he is not powerless. He is the Prime Minister, and he could act on a public interest test. We are talking about one of our most important companies. Nobody is convinced by his assurances. Why will he not intervene? Because he is falling back on the old idea that the market always knows best and does not need rules. From Royal Mail to AstraZeneca, this is a Prime Minister whose ideology means that he cannot stand up for the national interest.

[The Prime Minister]

If the right hon. Gentleman thinks these companies are important, why did he not meet them, rather than going canvassing? That is what he did: he quite literally put his own party political interest ahead of the national interest. What he fails to understand is that, yes, we measure the British interest in British jobs, British science and British investment, but we also measure it in being a country that is open to overseas investment. There is a reason why companies and countries are coming here to make cars, to build aeroplanes, to build trains, to fabricate oil rigs, to make new drugs in our country—it is because we have cut taxes, we welcome investment, we are growing our economy and we have got more people in work. We will take absolutely no lectures from the people who brought this economy to its knees.

Oral Answers to Questions

Edward Miliband Excerpts

Wednesday 30th April 2014 Commons Chamber

[The Prime Minister]

My hon. Friend is absolutely right to pay tribute to Lance Corporal Oliver Thomas. It is a reminder of the sacrifices we have borne in Afghanistan. This looks as if it was a tragic accident but we will get to the bottom of what happened. He is absolutely right, too, to mention how our reservists in all three forces serve alongside their regular colleagues and take all of the risks. In Afghanistan, the reservists have proved again and again that they are people of huge quality, ability and courage. As we go forward and expand our reserves, I hope that everyone in our country—particularly businesses, the public sector, local councils and others, including the civil service—will do everything they can to make sure that reservists are welcome in their businesses and supported in the vital work they do for our country.

[Edward Miliband (Doncaster North) (Lab)]

I join the Prime Minister in paying tribute to Captain Thomas Clarke of the Army Air Corps, Flight Lieutenant Rakesh Chauhan of Joint Helicopter Command, RAF Odiham, Acting Warrant Officer Class 2 Spencer Faulkner of the Army Air Corps, Corporal James Walters of the Army Air Corps, and Lance Corporal Oliver Thomas of the Intelligence Corps, who were tragically killed. Those deaths are a tragic and poignant reminder of the sacrifices made by our armed forces, including reservists, in serving our country with bravery and distinction. All our thoughts go to the friends of those whom we lost, including the hon. Member for Brecon and Radnorshire (Roger Williams). We share his loss, and our deepest sympathy goes to the families of those who were killed.

Let me also join the Prime Minister in paying tribute to the teacher, Ann Maguire, who was murdered in her classroom on Monday. That was an appalling tragedy. It is clear from the testimonies of those who have spoken out since she died that she was an inspiration to those whom she taught. All our thoughts are with her family and friends, and with the teachers and pupils at the school.

Yesterday, for the first time, we learnt the names of some of the 16 investors, including hedge funds, which were given preferential access to Royal Mail shares and sold one third of them. How were those lucky few chosen?

[The Prime Minister]

What we are talking about is an exercise in privatising Royal Mail that has been a success for our country. A business that lost £1 billion under Labour has now paid money back to the taxpayer, and is making profits. The people whom we should be praising are the 140,000 employees of Royal Mail who are now, under this Government, shareholders in the business for which they work.

[Edward Miliband]

We have had no answer to the question, Mr Speaker. The Royal Mail share price is currently 50% above the level at which it was sold. Only the Prime Minister would want to be congratulated on losing the taxpayer £1 billion.

Each of those chosen few investors was given, on average, 18 times more shares than other bidders, on the basis that, in the words of the National Audit Office, they would provide

“a stable long-term… shareholder base”,

and would not be—in the words of the Business Secretary—“spivs and speculators”. Can the Prime Minister tell us what assurances, in return for their golden ticket, those investors gave us that they would hold the shares for the long term?

[The Prime Minister]

First, the right hon. Gentleman says that people were given shares. They paid for shares. Secondly, he again raises the issue that there was some sort of agreement. There was no agreement.

At the end of the day, the right hon. Gentleman should recognise that a business which lost money, and which he tried to privatise in government but failed, is now in the private sector, making money and succeeding for our country, and its employees are now shareholders. Is it not interesting that, given the growth in our economy, the fall in unemployment and the reduction in the deficit, he is reduced, like old Labour, to complaining about a successful privatisation?

[Edward Miliband]

No, Mr Speaker. I am raising an issue about a rip-off of the taxpayer, which the British people know when they see it. The reason this matters—[Interruption.] The reason this matters—[Interruption.]

[Mr Speaker]

Order. The orchestrated barracking is very predictable and also incredibly tedious, but it will not stop us getting through Prime Minister’s questions; it just means that it will take a bit longer. Members should calm down, and take a tablet if necessary.

[Edward Miliband]

The reason this matters is that the sale was grossly undervalued. Shares that were sold for £1.7 billion on privatisation are now worth £2.7 billion, and who cashed in? Twelve of the 16 so-called long-term investors made a killing worth hundreds of millions of pounds within weeks.

Yesterday, the representative of the bank that sold the shares said there was an “understanding” with those investors. [Interruption.] That is what it says on the record, Mr Speaker. He said that there was an understanding with those investors about their long-term commitment to Royal Mail. So why were they allowed to make a fast buck?

[The Prime Minister]

We are being given lectures on taxpayer value from the people who sold our nation’s gold at the bottom of the market. The right hon. Gentleman talks about ripping off the taxpayer, but it was he who left an 11% budget deficit after the biggest banking bail-out in Britain’s history.

These are exactly the arguments that Michael Foot made about the privatisation of the National Freight Corporation. They are exactly the same arguments as Neil Kinnock made about British Telecom and British Airways. It pleases the Back Benchers, it excites the trade unions, but it is utterly meaningless. Is the right hon. Gentleman recommitting to renationalising the Post Office? No, of course not. He is just playing to the gallery because he cannot talk about the success of our economy.

[Edward Miliband]

The Prime Minister should listen to Members on his own side. What did the hon. Member for Northampton South (Mr Binley) say yesterday? He said that this privatisation had “let people down”. He said:

“The interests of the taxpayer were not taken into account”.

He has also called it “unethical and immoral”.

[Mr Brian Binley (Northampton South) (Con)]

indicated assent.

[Edward Miliband]

He is nodding his head. That is what the Prime Minister’s own side think of it. He talks a lot about the postal workers, so this is very interesting: there were no conditions on the hedge funds, but there were conditions on other groups such as the postal workers. Can he explain why postal workers were told they could not sell their shares for three years but hedge funds were told they could cash in on day one?

[The Prime Minister]

The Post Office workers were given their shares, and it is right that they were given their shares—let us celebrate the popular capitalism. I thought the right hon. Gentleman believed in empowering workers. We now have 140,000 workers who have got those shares. On the risk to the taxpayer, he ought to reflect on this—[Interruption.]

[The Prime Minister]

You are right, Mr Speaker, that there is a lot of history in this shouting, because of course in the past with all these privatisations we had the shouting of the Kinnocks, the shouting of the Prescotts and the shouting of the Straws. Over Easter, I was looking at Labour’s candidates and I saw that son of Kinnock is coming here, son of Straw wants to get here and son of Prescott wants to come here. It is the same families with the same message—it is literally the same old Labour. That is what is happening.

The right hon. Gentleman asked about taxpayer value, and here is what the National Audit Office said:

“Privatisation has reduced taxpayer risk to support the universal postal service”.

This is a good deal for taxpayers because this business was losing £1 billion and it is now making money, paying taxes and gaining in value—this is good for our country but bad for Labour.

[Edward Miliband]

The Post Office was actually making a profit when the Government privatised it. What have we discovered today? It is one rule for the postal workers and another rule for the hedge funds. Who runs these hedge funds? The Government have been very coy about who runs these hedge funds. None other than the Chancellor’s best man runs one of them. It is one rule if you deliver the Chancellor’s best man’s speech and it is another rule if you deliver the Chancellor’s post.

[The Prime Minister]

What this shows is that the right hon. Gentleman cannot talk about the deficit, because it is falling; he cannot talk about the economy, because it is growing; and he cannot talk about jobs, because there are 1.5 million more people in work. So he is painting himself into the red corner by talking only about issues that are actually successes for the Government but which appeal to the trade unions, the left wingers behind him and the people who want to play the politics of envy. That is what is happening in British politics, and everyone can see it. He has nothing to say about the long-term economic plan which shows Britain is on the rise and Labour is on the slide.

[Edward Miliband]

What we know is there is a cost of living crisis in this country—[Interruption.] Oh, they do not think there is a cost of living crisis. Why not? Because they stand up for the wrong people. The more we know about this privatisation, the bigger the fiasco it is: a national asset sold at a knock-down price; a sweetheart deal for the City; and the Government totally bungled the sale. Everything about this privatisation stinks.

[The Prime Minister]

Six questions and not a mention of GDP; not a mention of what happened to employment figures while we were away; and not a mention of the fact that the deficit is getting better. We know that the right hon. Gentleman has a new adviser from America. It is Mr Axelrod, and this is what the right hon. Gentleman has been advised to say. Let me share it with the House as it is excellent advice. It is that

“there’s a better future ahead of us”—

but we must not—

“go backward to the policies that put us in this mess in the first place.”

I do not know what Labour are paying him--

Oral Answers to Questions

Edward Miliband Excerpts

Wednesday 2nd April 2014 Commons Chamber

[The Prime Minister]

My right hon. Friend is factually correct: every Labour Government have left office with unemployment higher than when they came to office. In this Parliament what we have seen is 1.7 million more people employed in the private sector and 1.3 million more people employed as a whole—one of the highest rates of employment in our history. We must keep up the work to offer more hope and more security to more of our people.

[Edward Miliband (Doncaster North) (Lab)]

Can the Prime Minister tell the House: what is his excuse for the Royal Mail fiasco?

[The Prime Minister]

What I would say about Royal Mail is that taxpayers benefited from selling the business for £2 billion—that of course is £2 billion that the Labour party never achieved, because it was never able to sell the business.

[Edward Miliband]

Here is what the Prime Minister’s own side is saying about this issue. The hon. Member for Northampton South (Mr Binley) said yesterday that it was a “debacle”, “unethical” and “immoral”. The Prime Minister sold the shares for 330p. What are they trading at now?

[The Prime Minister]

The shares are trading ahead of where they were sold, but the fact is this—[Interruption.]

--- Later in debate ---

[Edward Miliband]

The Prime Minister cannot answer the question because it is such an embarrassment. He sold at 330p, and this morning the price was 563p. It is basic maths. It is not so much “The Wolf of Wall Street” but the dunce of Downing street. Let me ask him this: if Royal Mail was sold at today’s price, how much more would the taxpayer have made?

[The Prime Minister]

I will take a lecture from almost anyone in the country about the sale of Royal Mail, but not from the two muppets who advised the last Chancellor on selling the gold. There they sit with not a word of apology for £9 billion wasted. The Royal Mail privatisation has got £2 billion for the taxpayer, 140,000 employees owning shares and 700,000 members of the public who are now shareholders. This is a great success for our country, and something that the right hon. Gentleman should be praising.

[Edward Miliband]

Again, the Prime Minister cannot answer the question. The answer is that the taxpayer would have got £1.4 billion less for this valuable asset than it is worth today. Here is the thing, Mr Speaker—[Interruption.]

[Mr Speaker]

Order. When the Prime Minister was speaking I said that he should not be shouted down and nor should anyone else. However hard the effort is made to shout someone down, it will not work because we will just keep going. The sooner the juveniles can grow up and reach adulthood, so much the better.

[Edward Miliband]

And here is the thing, Mr Speaker, a third of the shares were sold to just 16 City investors. And get this: there was a gentleman’s agreement that those City investors would not sell the shares. What happened? Within weeks, half of those shares had been sold, and they had made a killing worth hundreds of millions of pounds. In other words, mates rates to the Prime Minister’s friends in the City. Perhaps he can tell us what happened to that gentleman’s agreement on those shares?

[The Prime Minister]

We know why the right hon. Gentleman is asking these questions—because he is paid to by the trade unions. He sat in a Cabinet that wanted to privatise Royal Mail. That was its commitment. What happened was this. The general secretary of the Communication Workers Union said that “in terms of the last Labour Government, they tried to privatise the Royal Mail—it was the unions who brought that government to its senses.” Once again, Labour was weak in Government because it could not carry out its policies; it is weak in Opposition because it does not support shareholding by postal workers in Royal Mail; it is weak because it has no economic policy; and it is weak because it has no plan.

[Edward Miliband]

He has flogged it off to his friends in the City and he cannot answer the question. I will ask him the question again. There was a gentleman’s agreement that these so-called long-term investors would not sell their shares, but half of them were sold and hundreds of millions of pounds were made. What happened to that agreement? Answer the question.

[The Prime Minister]

What happened is that the taxpayer is £2 billion better off. Yes, and anyone who has sold shares has missed out on what is a successful business. The truth is this: the right hon. Gentleman sat in a Cabinet that wanted to privatise Royal Mail. They could not do it—[Interruption.]

[The Prime Minister]

They could not do it because the trade unions would not let them. There are now 140,000 shareholders working for Royal Mail and almost three quarters of a million members of the public with shares. Those are signs for celebration in our country, not reasons to talk them down just because the Opposition are anti-market, anti-competitive and anti-business. Nothing has changed in the Labour party. No wonder it has advertised this week for someone to bring some fresh ideas to the leadership. I have the commercial here. It says that they should have

“the ability to manage…different teams across the Labour Party”.

That must be the hardest job in Britain. No wonder Labour is looking for a change, because it has a leader who does not have a clue.

[Edward Miliband]

The Prime Minister has gone as red as a postbox, and that is because he knows that he lost £1.4 billion for the taxpayer. This is a sale that nobody wanted and nobody voted for—a national asset sold at a knockdown price to make a fortune for the few. It is a symbol of a Government who stand up for the wrong people, with the British people paying the price.

[The Prime Minister]

The right hon. Gentleman just said that it was a sale that nobody wanted. It was in his manifesto—it was a commitment of the last Government. They are shaking—[Interruption.] They worked so hard, but they failed to do it. This coalition Government privatised Royal Mail, created thousands of new shareholders and have a great business working for Britain. We have seen it all from Labour this week. They are advertising for fresh ideas. People around the right hon. Gentleman are fighting like ferrets in a sack. Their top adviser—get this, Mr Speaker—is called Arnie and he has gone to America, but unlike Arnie he has said “I’m not coming back.” They are warring, they are weak and they do not have a plan.

Oral Answers to Questions

Edward Miliband Excerpts

Wednesday 26th March 2014 Commons Chamber

[The Prime Minister]

I completely understand my hon. Friend’s concern. We will be working with local partners to minimise the impact of the job losses. Honda has assured us that it is committed to the long-term success of the plant in Swindon, which I have visited—it is a remarkable plant—and the 3,000 people who work there. I know that Honda remains committed to the UK and committed to Honda. We will work with the local council and local people to ensure that Swindon continues to have a strong and successful economic future.

[Edward Miliband (Doncaster North) (Lab)]

This morning, we learned that the energy company, SSE, will be freezing its energy prices for 20 months. Would we be right to assume that the Prime Minister believes that the price freeze is unworkable, impossible to implement and probably a communist plot?

[The Prime Minister]

It is hugely welcome in our country that energy companies are cutting and freezing their bills. As ever with the right hon. Gentleman, he has failed to read the small print. This is what Scottish and Southern Energy says about why it has been able to cut bills in that way. It says today that “the decisions taken” by the Government

“to reduce the…costs of the ECO were a principal factor in SSE being able to make this price commitment”.

That is what is happening under this Government. What a contrast with the doubling of the gas bills and the 50% increase in electricity bills when Labour was in power.

[Edward Miliband]

So, over the past six months, we have obviously misunderstood the Prime Minister. He is the champion of the price freeze—that is what he wants us to understand. Week after week, he denounced Labour’s call for an energy price freeze to help families and business, but now—apparently—he supports the price freeze. Can he explain why a price freeze was wrong six months ago but the right thing to do today?

[The Prime Minister]

What we have done is reduce the costs of energy charges so that companies are able to cut their bills. Let me give the right hon. Gentleman the list of what has happened since I made the announcement about rolling back the costs of green charges—[Interruption.]

[The Prime Minister]

You are right, Mr Speaker. Opposition Members shout in support of the Leader of the Opposition in the Chamber and brief against him outside. That is what happens.

This is what has happened since I made that announcement. For dual-fuel users, British Gas has cut £50 off bills; Scottish Power £54 off bills; E.ON £50 off bills; EDF £65 off bills; and npower, Scottish Power and EDF have announced that prices will not go up further in 2014. May I therefore thank the right hon. Gentleman for the opportunity to demonstrate how that part of our long-term economic plan is as successful as all the other parts?

[Edward Miliband]

Once again, the Prime Minister shows how totally out of touch he is. The Office for Budget Responsibility itself says that energy prices are rising by more than double the rate of inflation. That is the reality. I am very interested in his position now on price freezes, because this morning the Energy Secretary said—[Hon. Members: “Weak.”] I will tell Government Members what is weak: not standing up to the energy companies. That is what they are not doing. The Energy Secretary, who I see over there, said this morning that he was calling on other suppliers to do the same and freeze their bills. Is it now the Prime Minister’s policy that we should freeze bills?

[The Prime Minister]

It is our policy that bills should be cut, and bills are being cut under this Government. That is what is happening. When we come to the small print, let us have a look at what Scottish and Southern said about the Labour policy. [Hon. Members: “Weak.”] I will tell hon. Members what is weak: weak is not having an economic policy; weak is not responding to the Budget; weak is having no long-term plan for Britain—that is what is weak. This is what Scottish and Southern says about Labour’s plans. It is worth listening to. It says that Labour policy

“does not appear to include a clear commitment or a long-term solution to reduce the costs of supplying electricity and gas…An externally-imposed 20-month price freeze would not reduce the costs of supplying energy.”

That is what Scottish and Southern says, and that is why, I assume, a Labour business supporter called John Mills said about Labour’s policy yesterday:

“I don’t think the Labour party would do that if it were in power”.

If Labour cannot convince its one business supporter, how on earth can it convince the country?

[Edward Miliband]

The right hon. Gentleman is not the Prime Minister at all; he is the PR man for the energy companies—that is what he is. Bills are rising and what is clear is that his argument against a freeze has been totally demolished today. A price freeze for households and businesses is feasible, workable and will happen under a Labour Government. All of this shows that he just does not get the cost of living crisis that is happening in this country. Will he confirm that the OBR itself shows that, over the course of this Parliament, living standards will be falling and that it is the first time that has happened since the war?

[The Prime Minister]

Is it not great that, after a week, we have finally got to the Budget? The right hon. Gentleman has finally got something to say about the Budget. If he is concerned about energy prices, he might want to explain why he voted against a Budget that has a £7 billion cut in energy prices for businesses and consumers up and down this country. Why did the Opposition vote against that? If he is concerned about the cost of living, why did they vote against a personal allowance of £10,500 for every single worker in our country? If they are concerned about the cost of living, why did they vote against giving pensioners the right to spend their own money as they choose? If they care about the cost of living, why did they vote against abolishing the savings tax, paid for by the poorest people in our country? They do not have a clue about how to help working people, no clue about how to run the economy and no clue about the Budget.

[Edward Miliband]

Not for the first time, “Calm down, dear, calm down.” Or should I say, for the benefit of the Chancellor, “Eyes down, dear, eyes down”? The truth is that living standards are falling over this Parliament. The Prime Minister talks about what the Chancellor did on energy, but it is classic “Give with one hand and take with another.” He introduced a carbon price floor and now he wants credit for giving part of it back to families and businesses. Let us try the Prime Minister again. Will he confirm that page 87 of the OBR document says that living standards are falling over this Parliament—yes or no?

[The Prime Minister]

The figures that the right hon. Gentleman quotes time and again at the Dispatch Box—[Interruption.]

[The Prime Minister]

Of course we were made poorer by the great recession over which the Opposition presided, but I am happy to compare our records on the cost of living any time. We are cutting income tax for 25 million people; they voted against it. We have taken 3.2 million people out of income tax altogether; they voted against it. We voted to freeze the council tax; they voted against it. We are freezing fuel duty; they voted against it. We are cutting spending so that we can cut taxes for hard-working people; they have voted against every single change. Their vote against the Budget last night will go down in the history of this Parliament as a massive own goal for Labour.

[Edward Miliband]

The Prime Minister will go down in history as the Prime Minister who cut people’s living standards over the course of this Parliament, and he cannot deny it. He cannot solve the cost of living crisis because he does not think there is one. He will not freeze energy bills because he thinks that that is nothing to do with the Government. The thing on which we can always rely with the Prime Minister is that he will always stand up for the wrong people.

[The Prime Minister]

What is happening under this Government is that inflation is falling, unemployment is coming down, 1.3 million more people are in work, and there are 400,000 more businesses in our country. We are helping the economy to recover from the ravages with which it was left by Labour. That is the truth. Everyone can see that we have a plan for a better future for our country, and everyone can see that the right hon. Gentleman is flailing around, a man with no plan and, increasingly, no future.

European Council and Nuclear Security Summit

Edward Miliband Excerpts

Wednesday 26th March 2014 Commons Chamber

[Edward Miliband (Doncaster North) (Lab)]

I start by welcoming the Prime Minister’s statement. I want to start where he did, on the formal substance of the EU summit and its conclusions.

We welcome the steps that were agreed in efforts to complete the internal energy market, to improve the energy flow across the continent, to strengthen EU tax rules on the exchange of information, and on nuclear proliferation. On climate change, I agree with the Prime Minister on the importance of the EU reaching agreement, if possible in advance of the UN climate leaders summit in September. The EU has shown leadership on this issue before. Some countries in the EU have doubts about the strength of the 40% target, but it is a target that we support and I know he supports, and he will have our support in pushing for maximum ambition on this issue.

On discussions regarding the vote at the UN Human Rights Council on Sri Lanka today, I am grateful to the Prime Minister for setting out the actions that have been taken. In the event of the UN resolution being passed, which is what we all hope for, will he say what he sees as the next steps to ensure that the inquiry we all want to see actually happens?

Let me turn to the main substance of the summit—Ukraine. The House is united in outrage at Russia’s annexation of Crimea. It is an action in direct violation of Ukraine’s territorial integrity and it is a clear breach of international law. Russia’s actions have created the most significant security threat on the European continent in decades. I believe that Members across the House will want to praise the measured response shown so far by the Ukrainian authorities in response to this terrible act of aggression. I also want to express support for the shared goals set out at last week’s EU Council meeting—of both isolating Russia for its actions and reassuring our allies and partners in the region.

I will take the specific outcomes of the summit in turn. First, I welcome the signing of the political chapters of the association agreement between the EU and the Ukrainian Government. It was that strengthening of co-operation with the EU, spurned by the former President, that partly sparked the current crisis. It is right that the EU should continue to make it clear that these agreements are not a zero-sum game between the EU and Russia—but it is also right that the EU now pushes ahead with similar pacts for Moldova and Georgia.

Secondly, it is vital, as the Prime Minister acknowledged, that the international community imposes real costs on President Putin and his key supporters. For that reason, we welcome the agreement at the EU summit on extending the list of individuals targeted by visa bans and asset freezes. But unlike the Washington list, the EU list avoided placing sanctions on certain senior Kremlin figures. Will the Prime Minister explain the reasons behind that, and say whether any specific proposals were put forward for consideration before the final agreement on the publication of the EU list?

Thirdly, given that the US has added sanctions on the Bank Rossiya and indicated that the economic sectors may be targeted as part of its approach, the Prime Minister said we would have a sectoral approach on these matters. Will he say what sectors are being looked at as part of the EU discussions?

Turning to the meeting of the G7 and the EU, we welcome the decision taken by members of the G7 to suspend the 16-year collaboration with Russia. It is absolutely right, not only that the Sochi summit does not go ahead, but that no future summits can be envisaged while the Russian action is outstanding. I note also, though, that this week the Russian Foreign Minister held talks with his Ukrainian counterpart for the first time since Russia’s move into Crimea. May I ask the Prime Minister what steps are being taken to ensure that such dialogue continues between Ukraine and Russia in the weeks ahead?

Finally, given that the Prime Minister said this week that Britain and its NATO allies would help to bolster the defences of the alliance’s Baltic members, which have Russian minorities and will be feeling particularly vulnerable at this time, will he tell the House what the nature of any such UK contribution would be?

The actions of the whole international community should be designed to strengthen Ukraine’s sovereignty and democratic transition, to impose real costs on the Government of President Putin, and to bring all sides together in a meaningful dialogue to de-escalate the situation and find a political solution. As we have said throughout this crisis, in taking this action, the Prime Minister will have our full support.

[The Prime Minister]

I thank the Leader of the Opposition for his response and for the points that he made in support of the approach that we are taking. Let me try to answer every point in turn.

On the Council communiqué, the right hon. Gentleman is right to mention the advances on tax transparency. This has been hard going, but there was a real breakthrough with Luxembourg and Austria now signing up to the approach. It means we have to put pressure on Switzerland to make sure it does that too, but we have made real breakthroughs in realising proper exchange of tax information, and I want to thank Austrian and Luxembourg colleagues for doing that.

On climate change, we agree that we need an agreement for the 40% reduction in carbon emissions. I think it will be achieved later in the year. We have to engage with the Polish Government and others. They do have an understandable concern, which is that if we are trying to control carbon and restrict supplies of Russian gas, that could lead to some countries burning coal. That does not help on the climate change front, and we need to work with them to find a solution.

On Sri Lanka, I am very grateful for the support we have for this co-sponsored UK motion. We hope it will be carried. If it is, then it is mandated that the review has properly to go ahead.

On Ukraine, the right hon. Gentleman is completely right that we should not see this as a zero-sum game—either a Ukraine that leans to Russia, or a Ukraine that leans to Europe. We want Ukraine to be a bridge between the two. It should have a proper relationship with Russia, but also a growing relationship with Europe—if that is what its people want. He is right to say that we should push ahead with these agreements, not only with Ukraine, but with Moldova and Georgia. It would send a terrible message if, because of what Russia has done, we were to pull back from these agreements that we would otherwise be signing.

On the question about why the US is taking a slightly different approach to the EU in terms of the specific individuals targeted for asset freezes and travel bans, the approach we take in the EU is that the individual concerned should have a proper link with the action taken in Crimea. [Interruption.] The right hon. Gentleman asks why. I think it is because of the legal processes under which the EU has to act. There is a logic in saying that it is right to target those—including Russian MPs—who have played a role in this illegal act.

In terms of economic sectors and future sanctions were Putin to go further in Ukraine, because the EU talks about wide-ranging economic sectors, that would have to include areas such as energy, financial services, trade and arms. The breakthrough here was to get the Commission to start the work, because it is no good warning about economic sanctions if work is not under way to deliver what they should be. That was a real breakthrough at the meeting which Britain strongly supported.

The Russian Foreign Minister’s talks with the Ukrainian Foreign Minister are hugely welcome. I met Ban Ki-moon yesterday to encourage further such contacts and for the UN to do everything it can to bring together Ukrainian and Russian Ministers.

Finally, the right hon. Gentleman asked about NATO and what we were doing to help to provide certainty and security particularly to Baltic countries. We are increasing our help with their air policing and are making four aircraft available. We should do everything we can to reassure our friends and colleagues in Latvia, Lithuania and Estonia and in Poland that we really believe in their NATO membership and the guarantees that we have given to them, and that we will work together to secure the future of Europe, as we have in the past.

--- Later in debate ---

[The Prime Minister]

All I can say is that, three and a half years into this Government, I feel that I have lived and breathed the Siemens investment, making frequent calls and trying to unlock the investment. I am sure others have played their role in that as well.

[Edward Miliband]

Generous.

[The Prime Minister]

Well, it was a lot more generous than anything my predecessor ever said about anything done by any previous Government. For once, silence. Yesterday I worked very hard with Hull city council, and local MPs. We do not have to talk too much about renewable energy today because Britain has the biggest offshore wind market anywhere in the world, and we should be proud of that. We do not have the largest shale gas market anywhere in the world; indeed, we have barely started. I give so much emphasis to shale gas because I think it can be an important part of our future, and I am sure that that will have all-party support.

European Council

Edward Miliband Excerpts

Monday 10th March 2014 Commons Chamber

[Edward Miliband (Doncaster North) (Lab)]

I thank the Prime Minister for his statement, and I join him in expressing deep concern about the situation in Ukraine.

Since we discussed this issue in the House last Wednesday, we have seen the illegal referendum announced in Crimea, Organisation for Security and Co-operation in Europe observers prevented from crossing into the region by Russian forces for four days running and, yesterday, violence on the streets against anti-Russian demonstrators. We support the twin-track approach of encouraging dialogue and at the same time maximising pressure on the Russian Government, but nobody looking at the unfolding situation on the ground would conclude that this is yet having the desired effect. It is on that basis that we should examine the discussions taking place, the outcome of the EU summit and the steps that should be taken in the days ahead.

It is worth saying that getting agreement among the EU 28 is always difficult, particularly when a number of member states are vulnerable to Russian action on issues such as energy. However, as we agreed last week, this is a test of EU resolve and of its commitment to uphold the rule of law, democracy and human rights—values on which it prides itself as an institution.

Let me welcome the summit measures that were agreed. Those include the unity of the EU in condemning Russia’s actions and the decision to provide support and encouragement to the Ukrainian Government, including €11 billion of aid. The Prime Minister referred to the suspension of visa talks and a new agreement on EU-Russia relations. Those measures are welcome, although they had been announced on 3 March before the developments that I referred to at the start. Does he accept that the evidence from recent days suggests that those measures alone will be insufficient to get Russia to change course, and that further action will be required?

Turning to what more needs to be done, I welcome the European Council’s decision to look at further measures, although the agreed language is weaker than we would have wished. I welcome what the Prime Minister said about asset freezes and travel bans. Will he confirm that the time frame for their implementation will be days and not weeks, particularly given that the United States is committed to such action? On the EU-Russia summit, which is referred to in the Council conclusions, surely it makes sense at the very least, unless there is an immediate change of course by the Russian Government, to suspend preparations for it, as has been done for the G8 summit in Sochi.

Beyond that, I welcome the Prime Minister’s statement that we need to look actively at other measures. I urge him in the days ahead to build support for further measures among our European and other allies to prepare for the eventuality that they will be required.

Let me ask the Prime Minister about some specific matters. Will he confirm that, if Russia does not change course, he will consider working with the G7 to suspend Russia from the G8—something that he called for specifically at the start of the crisis in Georgia in 2008? That would go beyond simply withdrawing from the preparatory talks for Sochi or from the Sochi summit itself. Following the announcement that the UK Government are reviewing every outstanding arms export licence to Russia, to which he referred, will he confirm what the time scale is for the conclusions on that issue? What scope does he believe there is for an EU-wide agreement on arms exports?

Finally, will the Prime Minister not only confirm that he is open to wider economic and trade sanctions, as he said in his statement, but tell the House in what circumstances it would be appropriate to go down that road? He said in his statement, with a reference to Chancellor Merkel, that there would need to be a ratcheting up of pressure on Russia if it used the referendum in Crimea to strengthen its hold on Crimea. Will he say specifically whether economic and trade sanctions would be appropriate in those circumstances, given that the referendum is a pressing matter and will take place in a week or so?

In conclusion, we should continue to use all possible channels to facilitate dialogue and encourage the Ukrainian Government to be as broad based as possible. We recognise the constraints on the Prime Minister in seeking to reach EU-wide agreement. However, I urge him, particularly as we approach the referendum in Crimea, to apply maximum influence on our allies, so that maximum pressure can be applied on the Russian Government. Hesitancy or weakness in the EU’s response will send precisely the wrong message. The UK has a vital position of responsibility in ensuring that that does not happen and that, instead, the EU and the US stand together in clear and united resolve. We will provide him with all the necessary support as he seeks to achieve that.

[The Prime Minister]

I thank the right hon. Gentleman for what he has said. He has welcomed our approach, which is a combination of pressure and dialogue. That is absolutely right: we should be trying to de-escalate the crisis, but an element of deterrence is required to discourage further aggressive steps from Russia.

Let me try to answer each of the right hon. Gentleman’s questions. He is right that this is a test of European resolve. It is clearly difficult, as he says, to get agreement among 28 countries. There are countries in the European Union that have a heavy dependence on Russian energy, for instance, so we have to try to bring everyone along in the argument. That is what happened at the European Council. A lot of people were expecting a strong US response and an EU response that was well behind it. That did not happen. Given everything, the EU response was a relatively good one.

The right hon. Gentleman asked whether further measures will be needed. That will obviously depend on the Russian response. We are trying to be clear, predictable and consistent in setting out what has been done, what will need to be done if the talks do not get going, and what further steps would be taken if Russia took further aggressive steps, for instance in eastern Ukraine. Setting that out in advance helps people to understand the depth of concern in the EU and the preparedness for action.

The right hon. Gentleman asked whether asset freezes would be put in place in days rather than weeks. Obviously, that depends on whether the Russians set up the contact group and start the dialogue with the Ukrainian Government. If they do not, asset freezes and travel bans will follow, and yes, that should follow in a matter of days not weeks, because the setting up of the contact group and the starting of talks is not a particularly difficult step for the Russians to take if they genuinely want to see this ended through a process of dialogue, rather than continuing with this conflict.

The right hon. Gentleman’s comment about linking the EU-Russia summit with the G8 is absolutely right. It would be unthinkable for a G8 not to go ahead while an EU-Russia summit did go ahead; these things have to be considered in tandem. He also asked whether it would be right to resuscitate the G7, rather than going ahead with the G8. If we do not make progress on a contact group and if Russia takes further steps, clearly one of the measures that we could bring forward relatively quickly would be to take a different approach by going back to a G7, rather than holding a G8, but let us hope that that is not necessary.

In relation to arms, the right hon. Gentleman made the point that we should try to take action across the EU, and I very much agree with that. I have set out today my own view about arms licences from Britain, and we will be working within the European Council to try to achieve the greatest possible common ground on this. The fact is that some countries have substantial exports to Russia, but as I said at the Council, everyone is going to have to consider things that might be painful and difficult for their own country, and I think that the countries concerned are prepared to take those steps.

The right hon. Gentleman asked about the issue with Crimea, and about what consequences could follow there. It is very clear that the international community is not going to recognise that illegal and illegitimate referendum. As I said, it is a fairly farcical referendum, because people cannot get out and campaign across Crimea. There is not even a proper electoral register there, there are troops all over the territory and Ukrainian politicians are unable to travel from one part of their country to another. So the referendum is clearly not only illegal but rather farcical. Again, the answer lies in Russia’s hand, because this is about how it reacts to this illegal and illegitimate referendum. If it reacts by saying that it is somehow legitimate, consequences should follow from that.

The right hon. Gentleman asked whether we should put maximum influence on our allies in Europe to try to strengthen these statements and measures, and we will. He made the point that the EU and the US should work together, and that is exactly what I believe we achieved last week. Also, behind his questions was the idea that we should be trying strategically to make the European Union member states less dependent on Russia. Some are heavily dependent on it for oil and gas, and it is right that the European Union should spend more time thinking about that.

Oral Answers to Questions

Edward Miliband Excerpts

Wednesday 12th February 2014 Commons Chamber

[The Prime Minister]

First of all, my hon. Friend is absolutely right to take up his constituent’s case in this way. He has written to me about this specific case. My sympathy goes out to the family and friends of Georgia Williams. As he has asked, I understand that the Independent Police Complaints Commission is currently considering its response to a referral from West Mercia police into the handling of this case and what needs to be published. On the issue of cautions, we announced last year that we are banning the use of simple cautions for all of the most serious offences, including manslaughter, rape and robbery, as well as a range of other offences that devastate lives and tear apart communities. Clearly, this is a tragic case and we must get to the bottom of what went wrong.

[Edward Miliband (Doncaster North) (Lab)]

I join the Prime Minister in expressing all my sympathies with people who have been affected by the floods, who have been driven out of their homes, and who are facing disruption to their lives. I also join him in paying tribute to all those helping with relief efforts and to the extraordinary resilience we have seen in the past few weeks of the people of our country. He will know that people in affected communities are relieved that help from the armed forces and emergency services has now arrived, but many feel they were sent in too late. With further flooding expected in the coming hours and days, can the Prime Minister provide an assurance that people will be getting help in time, not after the event?

[The Prime Minister]

I can certainly give that assurance. Let me repeat again that it is important, as the right hon. Gentleman said, to praise our emergency services, to praise volunteers, and to praise all those working for the Environment Agency, who have worked night and day, round the clock, to help our communities. They really have done amazing work, and we should thank them.

In terms of the engagement of the military, I think that this is important. It has always been possible for gold commanders in these emergency situations to call on military assets. Indeed, a military liaison officer is supposed to sit with those gold commanders and liaise with them. What we have done in recent days is to say very clearly to all the local authorities concerned, which we have contacted individually, “If you want military assistance, don’t think twice about it: think once, then ask, and they’ll be there.” We have now got thousands of military at a state of readiness to help out. A huge number have already been deployed; and yes, as we see the levels potentially rising on the Thames again coming into this weekend, we should do everything we can now to get extra help into those communities that could be affected and make sure that they are helped. All the military assistance that is required is there; people only have to ask.

[Edward Miliband]

I welcome that promise of proactive help from the Prime Minister. Given the forecasts of extreme weather and that river levels are rising, one of the key issues that will concern people is not just their homes but continuing gas and electricity supplies. We have learned from experience in 2007 that protecting electricity substations that can be responsible for power for hundreds of thousands of homes is of particular importance. Can he reassure the House about the steps being taken to protect these vital services?

[The Prime Minister]

I can give the right hon. Gentleman that assurance. My right hon. Friend the Minister for Government Policy carried out a review into the resilience of our infrastructure. A lot of extra steps were taken following that, and that has made a difference. Also, in the Cobra system, we are monitoring every day those particular bits of infrastructure that could be under threat. In recent days, it has more been about water-treatment works than electricity works.

I also spoke to the Minister responsible for energy policy, my right hon. Friend the Member for Sevenoaks (Michael Fallon), at this morning’s Cobra to make sure that everything is done to contact the energy companies to stand up the people who will be necessary if there are further supply interruptions over the coming days. Since the experience of the problems in Kent after Christmas, the energy companies and the network companies have done a better job at reconnecting people more quickly.

[Edward Miliband]

I thank the Prime Minister for that answer. One of the reassurances that he provided yesterday, as he said in an earlier answer, was to say that money was no object, but this morning the Transport Secretary said that it is not a “blank cheque”. Will the Prime Minister tell the House exactly what areas of spending yesterday’s promise covers?

[The Prime Minister]

I was very clear last night, and let me repeat again that, as I said last night, money is no object in this relief effort. I want communities who are suffering and people who see water lapping at their doors to know that when it comes to the military, sandbags, the emergency services, restoring broken flood defences—all of those things—money is no object. To be fair to the Transport Secretary, this is what he said this morning:

“money is not the issue while we’re in this relief job.”

That is what he said. He is absolutely right.

[Edward Miliband]

The Prime Minister is of course absolutely right about the relief effort. He also said yesterday that he will

“spend whatever it takes to recover from this”

and make sure that we have a

“resilient country for the future.”

Let me give him an example in that context. Yesterday, he praised the staff of the Environment Agency, but it is in the process, this year, of making 550 people dealing with flooding redundant. These are staff who help put in place and maintain flood defences, and help deal with clean-up. If money is no object, as he said, is he committing now to reconsidering these redundancies?

[The Prime Minister]

Let me tell the right hon. Gentleman exactly what we are doing with the Environment Agency and with the flood defence budget. We are spending £2.4 billion over the four-year period between 2010 and 2014, which compares with just £2.2 billion in the previous four-year period. What I can say to the House—I think that this is important—is that as the waters recede, it will be important for the Environment Agency and for local authorities all to look again at the flood patterns we have seen and the models that they have, and to work out what fresh flood defences will be necessary.

In addition to that, I can tell the House that we will be introducing a grant for all affected home owners and businesses to build in better flood protection as they repair their properties. That will be up to £5,000 per house and per business. On top of that, we are announcing a £10 million fund to help farmers who have seen their land waterlogged day after day, week after week. I can also announce today that we will be deferring the tax payments that businesses have to pay, and all the businesses that have been affected by floods will get 100% business rate relief.

[Edward Miliband]

Those steps are welcome and will be welcomed across the House, but I am afraid that the Prime Minister did not answer the specific question I asked, which is about the 550 people who work on flood defences who the Environment Agency is planning to make redundant. They are people who are currently helping with the clean-up, and who put in place the flood defences.

Similarly, on the issue of spending on flood defence, the Committee on Climate Change says that we are spending significantly less on flood defence than we should. My question is a simple one: given yesterday’s promise to make sure that we have a

“resilient country for the future”

and will

“spend whatever it takes”,

is the Prime Minister committing now to reconsidering these redundancies and the amount of money we invest in flood defences?

[The Prime Minister]

Let me tell the right hon. Gentleman what we are doing with the Environment Agency budget into the future. We have set out the figures for the Environment Agency budget in terms of capital spending all the way up to 2020. We have made capital spending pledges only in areas such as transport and flood defences—pledges that no one else is able to match, particularly not if they are committed to a zero-based budget review, but promises we are happy to make so that people can see how much money will be spent on flood defences in 2015, 2016, 2017, 2018, 2019 and 2020. We are only able to make those pledges because we have managed our economy effectively and managed our Budgets effectively.

[Edward Miliband]

I say to the Prime Minister that he came along to his press conference yesterday and made what sounded like a very grand promise to

“spend whatever it takes to recover from this and to make sure we have a resilient country for the future”.

The simple point that I am making to him is that there are real doubts about that when it comes to making members of the Environment Agency who deal with flooding redundant and the Committee on Climate Change—the expert body that is charged with this—says that the investment in flood defences is not happening. He needs to reconsider those things.

I urge the Prime Minister to ensure this in the coming days: the Government need to speak with one voice on this issue; the response needs to be speedier than it has been in the past; and everyone affected needs to feel that they are getting the help they need. If the Government do that, they will have our full support.

[The Prime Minister]

What I said last night is exactly what I have said today: when it comes to this relief effort, money will be no object. I do not want people to worry about penny-pinching as they see the vital work that is needed to help them with their houses and to deal with the floods. This is what this Government are doing: we are deploying the military when we are asked for the military; we deployed extra pumps when we were asked for pumps; we are raising the compensation to local government to 100%, because that is what local communities should have. I am only sorry that the right hon. Gentleman seeks to divide the House, when we should be coming together for the nation.

Oral Answers to Questions

Edward Miliband Excerpts

Wednesday 29th January 2014 Commons Chamber

[The Prime Minister]

My hon. Friend is absolutely right: that should be the test of the decisions we are taking—will they secure a better future, more stability and more peace of mind for our children and grandchildren? Last week we saw the biggest number of new jobs in a quarter since records began, and this week we see the fastest growth in our economy for six years. There should be absolutely no complacency. The job is nowhere near complete, but if we stick to our long-term economic plan we can see our country rise and our people rise too.

[Edward Miliband (Doncaster North) (Lab)]

All sides of the House will welcome the Government’s significant change of heart on the issue of Syrian refugees, which I raised with the Prime Minister last week, and we look forward to the Home Secretary’s statement. Now that the decision has apparently been taken, will he reassure the House that he will act with the utmost urgency, because we are talking about the most vulnerable people in refugee camps who need help now?

[The Prime Minister]

What I can assure the right hon. Gentleman is that we will act with the greatest urgency, because when it comes to Syria, we have acted with the greatest urgency throughout. We have made available £600 million, which makes us the second largest humanitarian donor. We have provided food for 188,000 people, clean water for almost a million, and medical consultations for almost a quarter of a million. As the Home Secretary will make clear, we will be coming forward with a scheme to help the most needy people in those refugee camps and offer them a home in our country. We want to make sure that we particularly help those who have been victims of sexual violence—a cause that the Foreign Secretary has rightly, on behalf of the whole country, championed across the world.

[Edward Miliband]

I welcome the Government’s decision to accept Syrian refugees; it is a very important cause.

Let me turn to another subject. Can I ask the Prime Minister who, just before the election, said that

“showing that we’re all in this together…means showing that the rich will pay their share which is why…the 50p tax rate will have to stay”? [Interruption.]

[Mr Speaker]

Order. A question has been asked and the answer must be heard.

[The Prime Minister]

Under this Government the richest will pay more in income tax in every year than any year when the right hon. Gentleman was in office. That is the truth. I want the richest to pay more in tax, and under this Government they are, because we are creating jobs and growth, and we are encouraging investment. What we have heard from Labour Members over the past 48 hours is that they want to attack that growth and attack those jobs; they want to attack those businesses. We now have in Britain an anti-business, anti-growth, anti-jobs party.

[Edward Miliband]

No, Mr Speaker; what we have is a policy with the overwhelming support of the most important people of all—the people of Britain. That is what the 50p rate is. The Prime Minister is obviously rather coy in telling us who said those words. Of course, it was him, in 2009, just before the election. He said that the 50p tax rate was a symbol of us all being in it together, and now it has gone. Can he now tell us whether he rules out cutting the top rate further to 40p?

--- Later in debate ---

[The Prime Minister]

There is plenty more. While we are on the subject of interesting quotes, who in the last 48 hours said this:

“do I think the level of public spending going into the crisis was a problem for Britain? No, I don’t, nor our deficit, nor our national debt”?

In fact, he even said that in

“in some areas we’d spend more”.

That was the shadow Chancellor. We were talking earlier about our children. When our children in future turn to the dictionary and look up the definition of denial, it will be right there: Balls, Ed.

[Edward Miliband]

It is hard to remember now, but a long time ago I asked a question. The Prime Minister failed to answer it, so let us try him again and give him another go. Does he rule out—[Interruption.] The Chancellor should keep quiet for a second. Does the Prime Minister rule out giving another tax cut to the richest in society by cutting the top rate to 40p—

[The Prime Minister]

rose—

[Edward Miliband]

Calm down. Yes or no?

[The Prime Minister]

There is so much good news I cannot wait to get up and tell it. Our priority is to cut taxes for the lowest paid in our country. That is why we have taken 2 million people out of tax. Let us look at the reaction to the right hon. Gentleman’s 50p announcement. Businesses have said it would cost jobs, Labour Ministers whom he served alongside have queued up to say that it is economically illiterate, and the Institute for Fiscal Studies has said that it would raise hardly any money. It has been an absolutely disastrous policy launch from a disastrous Labour economic team.

[Edward Miliband]

With every answer, the Prime Minister shows who he stands up for: a few at the top, not the ordinary families of Britain. That is the truth.

It is a very simple question. I know the Prime Minister does not love answering questions at Prime Minister’s questions, but that is the point of these occasions. We are asking him a very simple question. We have a clear position. We would reverse the millionaires’ tax cut and put the top rate of tax back to 50p. I am asking him a very simple question. Does he rule out reducing the top rate to 40p—yes or no?

[The Prime Minister]

The simple answer is that I have told him our priority: tax cuts for low earners, tax cuts for middle earners, freezing the council tax, freezing the fuel duty and helping people in our country. What have we seen from him so far this year? We have seen a banking policy that the Governor of the Bank of England says would increase risk to the banking system, an employment policy that the CBI said would cost jobs, and a tax policy that business leaders said would be a risk to our recovery. There is a crisis in our country— a crisis of economic credibility for the Labour party.

[Edward Miliband]

The whole country will have heard; he had three opportunities to answer and he could not give us a straight answer to the question. This is a country where, after four years of this Government, people are worse off. This is a Prime Minister who has already given those at the top, millionaires, a £100,000 tax cut, and he wants to give them another one. He can only govern for the few; he can never govern for the many.

[The Prime Minister]

I will tell you who we are governing for: the 1.3 million people who got jobs under this Government; the 400,000 new businesses under this Government; the 2 million people we have taken out of tax under this Government; the people on the minimum wage who have seen their tax bills come down by two thirds under this Government. That is who we are governing for. The fact is we have more factories producing more goods, more people taking home a pay packet and more security for hard-working families. Now we can see the risks. Labour—a risk to jobs, a risk to the recovery and a risk to the future of Britain’s security.

Oral Answers to Questions

Edward Miliband Excerpts

Wednesday 8th January 2014 Commons Chamber

[The Prime Minister]

I thank my right hon. Friend for his comments, including those about Paul Goggins.

It is a welcome report from the British Chambers of Commerce, but there is still a lot more work to do: we must continue to reduce the deficit, create economic growth and get more people into work. There should not be one ounce of complacency, but the report did find that manufacturing balances were at an all-time high, that exports were up and that services were growing strongly. If we stick to this plan, we can see this country rise, and our people rise with it too.

[Edward Miliband (Doncaster North) (Lab)]

I join the Prime Minister in paying tribute to Captain Richard Holloway of the Royal Engineers, who was killed in action in Afghanistan. His death, just two days before Christmas, is a reminder of the risks being taken on our behalf every day by members of our armed forces. He showed the utmost courage and bravery, and all our sympathies are with his family and friends. I also join the right hon. Gentleman in sending condolences to the families of the victims of the US helicopter crash in Norfolk.

I want to pay tribute to our friend and colleague, Paul Goggins. He was one of the kindest, most decent people in the House, and he was someone of the deepest principle. It shone throughout his career, as social worker, councillor, MP and Minister, and it is a measure of the man and his ability that he earned the respect, trust and affection of all sides in Northern Ireland. The Labour party has lost one of its own and one of its best. Our deepest condolences go to his wife, Wyn, to his children, Matthew, Theresa and Dominic, and indeed to his whole family.

The whole country will be concerned about the price being paid by those in communities affected by the floods and storms. I pay tribute to the work of the emergency services. Will the Prime Minister update the House on the number of people affected and on what action is being taken now to ensure areas that could be affected by further flooding have all the necessary support?

[The Prime Minister]

First, I thank the Leader of the Opposition for his very moving words about Paul Goggins.

The flooding provides an extremely difficult situation for those affected. We should remember that seven people have lost their lives since this began. The right hon. Gentleman is right to pay tribute to the emergency services, to the Environment Agency workers, to the flood wardens and to the many neighbours and individuals who showed great bravery, courage and spirit over the Christmas period in helping neighbours and friends.

As the situation is ongoing, let me bring the House up to date with the latest detail. There are currently 104 flood warnings in place across the whole of England and Wales. That means, sadly, that more flooding is expected and that immediate action is required. There are also 186 flood alerts, which means even further flooding is possible beyond what we expect to happen more rapidly. Although the weather has improved, river and groundwater levels remain so high that further flooding could come at relatively short notice. There are a number of particular concerns, including Dorset, Wiltshire, Hampshire, Somerset and Oxfordshire. Given these ongoing threats, which could last for several days to come, I urge members of the public to keep following the advice of the emergency services and the Environment Agency in those areas at risk. At a national level, we have co-ordinated this response via Cobra, which will continue to meet under the chairmanship of my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs until the threat has passed.

[Edward Miliband]

I thank the Prime Minister for that answer. I know he and the Environment Secretary will keep us updated. He will recognise that some people felt that the response was, at times, too slow. In particular, will he explain whether it has become clear why it took so long for some of the energy distribution companies to restore power to homes over the Christmas period? What steps does he believe can be taken to ensure that that kind of thing does not happen again?

[The Prime Minister]

The right hon. Gentleman is absolutely right: in all these circumstances, no matter how good the preparation, there are always lessons to learn—and there are lessons to learn on this occasion. On the positive side, the Environment Agency warning service worked better than it has in the past and the flood defences protected up to a million homes over the December and Christmas period, but there are some negatives, too, and we need to learn lessons from them. In particular, some of the energy companies did not have enough people available over the holiday period for an emergency response, which I saw for myself in Kent. We need to learn those lessons, and my right hon. Friend the Minister for Government Policy will lead this exercise. The Energy Secretary is already looking at the levels of compensation and at the preparedness and speed of response from energy companies. I would, however, welcome hearing from Members of all constituencies affected by the flooding what they saw on the ground about the lessons that could be learned so that we can ensure that preparedness is even better on a future occasion.

[Edward Miliband]

Given the scale of risk exposed by these floods and the expected impact of climate change, will the Prime Minister also commit to the Department for Environment, Food and Rural Affairs providing a report by the end of this month, providing a full assessment of the future capability of our flood defences and flood response agencies and of whether the investment plans in place are equal to the need for events of this kind?

[The Prime Minister]

I am very happy to make that commitment. As the right hon. Gentleman knows, in this current four-year period, we are spending £2.3 billion, compared with £2.1 billion in the previous period. The money is going into flood defences. As I said, in the early December flooding, about 800,000 homes were protected by previous flood defence work and over the Christmas period a further 200,000 houses were affected. Whenever there is flooding, it makes sense to look again at the proposals in the programme for flood defence work and to see what more can be done. In addition to Government money, we are keen to lever in more private sector and local authority money, which is now possible under the arrangements. I am happy to commit, as the right hon. Gentleman asked, to the Environment Secretary coming back to report to the House on the level of expenditure in the years going ahead.

--- Later in debate ---

[The Prime Minister]

My hon. Friend has made an important point. We have made difficult decisions to get the deficit down and to get the country back on track: difficult decisions in terms of departmental spending, and also welfare. The Labour party is now back where it started: Labour Members are saying that they want to mitigate the level of cuts, and therefore they want to spend more, they want to borrow more and they want to tax more. We may be at the beginning of a new year, but they have gone completely back to where they were three years ago.

[Edward Miliband (Doncaster North) (Lab)]

Does the Prime Minister recognise the concern of families and communities about the impact of fixed odds betting terminals, gaming machines on which people can gamble up to £300 a minute on our high streets?

[The Prime Minister]

I absolutely share the concern about that issue, and I welcome the fact that we shall be debating it in the House today. There are problems in the betting and gaming industry, and we need to look at them. I think it is worth listening to the advice of the right hon. Gentleman’s own shadow Minister who said

“I accept the argument that empirical evidence is needed before making”

any changes,

“because it might just create another problem somewhere else”.—[Official Report, Eighth Delegated Legislation Committee, 27 November 2013; c. 8.]

However, this is a problem, and it does need to be looked at. We have a review under way. We are clearing up a situation that was put in place under the last Government, but I think that if we work together, we can probably sort it out.

[Edward Miliband]

The Gambling Act 2005 limited the number of machines to four per betting shop, but it did not go nearly far enough. More action should have been taken. The Prime Minister asked about evidence. Local communities from Fareham to Liverpool are saying that these machines are causing problems for families and communities. Local communities believe that they already have the evidence. Should they not be given the power to decide whether or not they want these machines?

[The Prime Minister]

The right hon. Gentleman has made a reasonable point, but let me first deal with the facts. The first fact is that fixed odds betting terminals were introduced in 2001 after the Labour Government had relaxed gambling regulations. The second fact is that there are fewer of these machines now than there were when Labour was in office. As for the right hon. Gentleman’s last point, councils already have powers to tackle the issue, and I believe that they should make full use of those powers. I am not arguing that that is “job done”—there may well be more to do— but we have a review under way. This is an issue for the Department for Culture, Media and Sport. If the right hon. Gentleman has ideas, I ask him to put them into the review, but, as I said earlier, he may want to listen to his own shadow Minister, who, as recently as November, said

“there is no evidence to support a change to stakes and prizes for FOBTs”. —[Official Report, Eighth Delegated Legislation Committee, 27 November 2013; c. 20.]

There seems to be something of a change here, but if the right hon. Gentleman has extra evidence, he should put it into our review, and I think that we can then sort the matter out.

[Edward Miliband]

Our ideas are in today’s motion, and if the Prime Minister wants to vote for it, we would be very happy for him to do so. He says there are already powers in place, but the Mayor of London and the Conservative head of the Local Government Association have said that local authorities do not have the power to limit the number of machines. One in three calls to the gambling helpline are about these machines and they are clustered in deprived areas. For example, there are 348 in one of the most deprived boroughs in the country: Newham. Can the Prime Minister at least give us a timetable for when the Government will decide whether to act?

[The Prime Minister]

We will be reporting in the spring as a result of the review that is under way, and I think it is important that we get to grips with this. There is something of a pattern. We had the problem of 24-hour drinking, and that needed to be changed and mitigated and we have done that. We have the problems created by the deregulation of betting and gaming, which the right hon. Gentleman is raising today and we need to sort that out. We have also had problems, of course, in the banking industry and elsewhere that we have sorted out, so, as I said, if he wants to—[Interruption.] As I said, if he wants to input ideas into that review, I think that is the right way forward.

Oral Answers to Questions

Edward Miliband Excerpts

Wednesday 11th December 2013 Commons Chamber

[The Prime Minister]

My hon. Friend makes a very good point in speaking on behalf of his constituent. As he has said, we have toughened the law, and I think that that has made a difference, but I think that the most important thing for us to do now is get rid of this dreadful culture of people carrying knives and educate young people about the dangers of carrying them. Those who carry knives often end up being stabbed themselves, and sometimes tragically die. It is to that work that we should now give priority.

[Edward Miliband (Doncaster North) (Lab)]

Does the Prime Minister agree that, given the crisis in living standards that ordinary families are facing, Members of Parliament should not be awarded a pay rise many times above inflation in 2015?

[The Prime Minister]

I do agree with the right hon. Gentleman about this issue. I think that it would be wrong for MPs to be given a big pay rise at a time of public sector pay restraint. All three party leaders agree on that, and we have all made the point to the Independent Parliamentary Standards Authority. However, we should be clear about the fact that what IPSA has said is not a final recommendation.

Let me briefly make three points. First, I think that the idea of an 11% pay rise in one year at a time of pay restraint is simply unacceptable. Secondly, I think that IPSA needs to think again, and that unless it does so no one will want to rule anything out. No one wants to go back to the system of MPs voting on their own pay, but we must have a process and an outcome that can build public confidence. Thirdly, I think that all this should be accompanied by a cut in the cost of politics.

[Edward Miliband]

I am glad that the Prime Minister agrees with me about this issue. Does he also agree that we should not let it hang around as an issue until after the general election, and hang over trust in politics? May I urge him to work with me, on a cross-party basis, to find a way of making IPSA think again, and to stop this package happening?

[The Prime Minister]

My door is always open to the right hon. Gentleman, and I am always happy to discuss this or, indeed, any other issue. Let me stress, however, that what IPSA has said is not a final recommendation. I think that if the three party leaders and others in the House unite in saying that it is not right to award this pay rise, that will be the strongest message we can give.

[Edward Miliband]

I agree with the Prime Minister, but I hope he agrees with me that waiting and seeing will not work and that we do have to get together to deal with this. The reason this is not the right time for this pay rise is that most people are going through the biggest cost of living crisis in a generation, and I want to turn to that cost of living crisis. Last Thursday, the Chancellor claimed living standards were rising. That just is not the case, is it?

[The Prime Minister]

Let me add one point on the issue of MPs’ pay. This Government have shown respect for the difficulties people face: when we came into office we cut Ministers’ pay by 5% and froze it for the whole of the Parliament. That is not something Labour did.

The right hon. Gentleman wants to get on to the economy and, frankly, after last week’s exchange I cannot wait to get on to the exchange on the economy. We discovered a new duo: red Ed and redder Ed. I am looking forward to discussing these things. I thought the Institute for Fiscal Studies put this very clearly. It said: we have had a great big recession. We have had the biggest recession we have had in 100 years. It would be astonishing if household incomes had not fallen and earnings had not fallen, but the fact is that is the legacy of what Labour left us. The right hon. Gentleman’s entire approach seems to be: “We made the most almighty mess, why are you taking so long to clear it up?” Well, we are clearing it up.

[Edward Miliband]

In case the right hon. Gentleman has forgotten, he has been the Prime Minister for three and a half years. But I think we are making progress, because last Thursday the Chancellor said that living standards were rising. [Interruption.] His own Office for Budget Responsibility says:

“Almost whichever way you look at it…average earnings, wages and salaries…the levels have been falling”. [Interruption.]

[Mr Speaker]

Order. Mr Blenkinsop, you are yelling across the Chamber. Be quiet. Calm yourself. Take up yoga.

[Edward Miliband]

The OBR went on to say that it is “inconceivable” to suggest otherwise, but that is exactly what the Chancellor did last Thursday. Why will the Prime Minister not just come out and admit it: there is a cost of living crisis in this country?

[The Prime Minister]

Well, it comes to something when the right hon. Gentleman is being heckled from his own side. I do not know how you are going to keep us all in order, Mr Speaker.

I will tell the right hon. Gentleman what has been happening over these three years: we have got the deficit down by a third, we have got 1 million more people in work, we have got 400,000 more businesses operating in Britain, and we have got one of the fastest rates of growth now of any major western economy. But the truth about living standards and the cost of living is this: if we do not have a long-term economic plan to get our economy moving, we do not have a plan to deal with living standards. We have a plan. Our plan is to keep interest rates low, to get the country back to work, to cut people’s taxes, to boost business. Our plan is working. The right hon. Gentleman does not have a plan, as we discovered last week, apart from more borrowing, more spending, more taxes—all the things that got us into the mess in the first place.

[Edward Miliband]

Utterly complacent and out of touch with the country—that is this Prime Minister absolutely all over. Let us be fair to him: he does understand that some people are really struggling because today we learn of his plan to cut the top rate of tax further, from 45p to 40p. Can he explain why he is even contemplating a further tax cut for millionaires, who have received hundreds of thousands of pounds-worth of tax cuts, when ordinary families are so squeezed?

[The Prime Minister]

The top rate under this Government is higher than at any time when the right hon. Gentleman was in the Cabinet, the Government or was working in the Treasury trying to wreck the economy in the first place. If he wants to talk about the cost of living, let us compare our records. The Labour Government doubled council tax; we have frozen it. They put up petrol tax 12 times; we have frozen it. They put up the basic rate of pension by a measly 75p; we have increased it by £15 a week. I am happy to compare our records any time of day, but the British public know this: if we want to sort out the cost of living, if we want to help families, we need more jobs, we need more growth, we need a long-term economic plan. We have got one; he has not.

[Edward Miliband]

I will tell the right hon. Gentleman what happened—[Interruption.]

[Mr Speaker]

Order. Members must calm down. I have said that before, but some people are slow learners. We will go on for as long as it takes. They can shout and scream and bawl in the most juvenile manner, but we will just keep going.

[Edward Miliband]

I will tell the right hon. Gentleman what happened. Under the last Labour Government, real earnings went up £3,600. Living standards went up: under him, they are down £1,600. Living standards are down under this Government. We have always known how out of touch he is, but he is now taking it to a whole new level. The Government are in denial about the cost of living crisis, and they are not satisfied with one millionaires’ tax cut—they think it is time for another. Once again, the Prime Minister proves that he stands up for the wrong people.

[The Prime Minister]

Oh, dearie me! At the end of six questions, we are back to denial and the record of the last Labour Government. I know that I have had a long flight, but I could not have written the script better if I had done it myself. The last Labour Government gave us the biggest budget deficit virtually anywhere in the world, and the biggest banking bust anywhere in the world. They created a giant mess that this Government are clearing up. That is the truth. Since the autumn statement, why cannot the right hon. Gentleman mention the fact that business optimism is up, manufacturing is up and the number of job vacancies is up? Pretty soon, we will be able to add two to that list.