Achieving Economic Growth

Debate between Geraint Davies and Bernard Jenkin

Wednesday 18th May 2022 Commons Chamber

[Sir Bernard Jenkin]

I am most grateful to my hon. Friend for that intervention, but we should recognise that these issues of conversion therapy and transsexuality are very important to certain sections of society. They need to be addressed, but we need to be sure that we address them in the right way.

[Geraint Davies]

Will the hon. Gentleman give way?

[Sir Bernard Jenkin]

I will, but I do not want to give way too often because we are not time-limited.

[Geraint Davies]

Some years ago, I brought forward a Bill on the regulation of psychotherapists, which recommended banning conversion therapy. There was a conference that 100 conversion therapists attended, so this is a widespread and abhorrent practice. Does the hon. Gentleman agree that those who say that transsexuality should not be included seem to be those who think that people would go through the process of becoming a transwoman in order to rape another woman? There are a lot of male rapists out there. It seems to be a lot of effort for someone to have their head kicked in by other men. Transgender people should be included in the Bill.

[Sir Bernard Jenkin]

I had not intended to make a great speech about this subject. I note the point that the hon. Gentleman has made and I wish to move on.

I welcome the forthcoming legislation to protect the Belfast/Good Friday agreement. I say to the right hon. Member for Leeds Central (Hilary Benn), who spoke a few moments ago, that perhaps we agree a great deal about the future of the Northern Ireland protocol. The question is whether we can make it happen unless we have some legislation coming down the track as well, because the EU has not changed its mandate.

I want to concentrate today on much more immediate challenges. Covid supply chain disruption persists in many parts of the world, notably China, and now we have Russia’s dreadful war against Ukraine, which frankly has shattered the geopolitical order that we have become used to for decades. We all used to believe in what the Germans called, “Wandel durch Handel”—the mistaken faith that nations that trade together would never go to war with each other. President Putin has smashed that confidence.

Business and Governments are reducing their exposure to dependency on all autocratic regimes. That is throwing globalisation into reverse, creating massive price increases and shortages. Poorer nations are acting to keep their food affordable for their own people. For example, India has just banned wheat exports, following Indonesia, which banned palm oil exports. We have an acute, growing and potentially far greater energy supply crisis in Europe. Europe cannot continue to rely on supply from Russia. This crisis requires a vast reorganisation of Europe’s energy supply and trading arrangements, and this massive adjustment will take years and is unprecedented. Only major food and energy producers in the world, such as Canada and the US, will avoid the worst kind of recession.

At least the United Kingdom can produce some of our own gas and oil and can continue to expand renewables, but why are we pumping our surplus gas out to Europe this warm spring to fill EU storage capacity, when we should be filling our own? The Government shut it down, and we need to reopen our gas storage capacity as quickly as possible. I fervently hope that we can achieve net zero by 2050 without excessive cost. The Government are right to see gas as the essential transition fuel, but why import gas when we can produce our own more cheaply?

Meanwhile, we must all recognise the cost of living crisis—yes, crisis. Even before today’s shock rise in CPI to 9%, the Commons Library had given me striking projections for the effect of this crisis on households. The full-year cost of just energy and food prices will rise by well over £1,000 a year for the lowest 20% of households by income and by £1,500 a year for pensioner households. A summer package to rescue the most vulnerable households is needed to avoid real financial distress and personal anguish and to support the economic demand of the most vulnerable households, or we will be creating possibly a worse recession than is already expected.

I welcome the suggestion in The Times today that the Government are considering a package. The spring statement represented peacetime thinking. Like after the unforeseen covid crisis, the Treasury must adapt to this unexpected war in Europe and accept that this new global energy and economic crisis also requires a very substantial policy response. I have to say that is far greater than the £3 billion package that the Labour party has offered us, though I do not subscribe to the rest of its fiscal profligacy.

I suggest that the £20 uplift in universal credit should immediately be restored. The abolition of VAT on domestic fuel would abolish a regressive tax that hurts the poorest households the most. We can do that now we are outside the EU. The Government should abolish the green levies on energy bills and fund them from the Exchequer, as recommended by Professor Dieter Helm. The Government should provide pensioners and poorer families with the confidence they can afford to stay warm. We should double the warm home discount and treble the winter fuel payment.

This package would cost not £3 billion, but £13.5 billion from July in this current tax year, but that is still less than the recent tax increases we have seen, and it is about 0.6% of GDP and affordable. Now or later, we should also consider relief for middle-income households. The lower 40% of households will feel severe stress from energy and food costs alone. We could start reindexing tax thresholds, or more, and that would have the advantage of incentivising work and productivity.

I have watched Governments—and Oppositions, I think we saw it today—blindsided by their own commitment to outdated thinking and policies of the past. There is no excuse for another such episode. My right hon. Friend the Chief Secretary is right to sound cautious, but we can see what is coming, and I am confident that this Government will act as they must.

Relationship with Russia and China

Debate between Geraint Davies and Bernard Jenkin

Thursday 24th February 2022 Commons Chamber

[Sir Bernard Jenkin (Harwich and North Essex) (Con)]

It is a great pleasure to follow the right hon. Member for Orkney and Shetland (Mr Carmichael), who stands out as the only Scottish Member of Parliament who voted for the renewal of Trident in 2016. That is a great credit to him and to his prescience, because, as my right hon. Friend the Member for North Somerset (Dr Fox) said, if there was ever a demonstration of the futility of nuclear disarmament, it is the position that Ukraine finds itself in now. Yet that is the policy of the SNP and of a great number of Labour MPs, and they are a threat to our national security.

I congratulate my hon. Friend the Member for Isle of Wight (Bob Seely) on securing this debate. As the dark shadow of war once again falls across our entire continent, I reflect on the adage attributed to Leon Trotsky:

“You may not be interested in war, but war is interested in you.”

Everyone who loathes war and wants peace should reflect on that. If other people are determined to foment war, we have to take an interest.

The question in this debate is how we should now see Russia and China and the relationship between them. In the UK, we see Russia as an immediate threat, but China as perhaps the much greater long-term challenge. In the US, it is different. All US presidents since Obama have seen China as the existential threat and today’s Russia as yesterday’s problem, Europe’s problem, and a regional rather than a global threat. There are, to be sure, specialists in the US who understand that, like China, Russia is a long-term opponent, but their voices must compete with those who are effectively advocating appeasement for Russia—resets, normalisation, and the overlooking of previous illegal incursions, overseas assassinations, cyber-attacks on NATO allies and so on.

In Europe, Germany understands the existential nature of the Russian threat, but has until very recently pursued a policy of engagement with Russia. This now looks to have been deeply unwise. It has created serious vulnerability for Germany and for Europe as a whole. France, historically anti-American, must now accept that Russia presents the threat. Even this week, the French were, understandably, trying to use this to their advantage to prove their global influence and to try to secure peace. But all of Europe must now be united.

Nor is the United Kingdom beyond criticism. We have a firm understanding of the Russia problem in our analytical community, and of China, but until recently successive Prime Ministers chose to turn a blind eye to both problems. This is now changing, but the UK finds itself without the necessary tools to tackle the Russia threat and the China challenge. Our military has lost its ability to fight a peer enemy. Our legal system allows Russians and Chinese agents to exploit the vulnerabilities inherent in democracy. Our own blind reliance on spot markets to obtain cheaper gas has undermined our energy security. I have spoken before about how the UK Government lack the capacity for deep continuous strategic thinking to match the strategy and planning of our enemies, and I will return to that point.

Putin and President Xi have observed years of western failure to react to Russian encroachments and Chinese anti-democratic influence. We have encouraged them to join together in thinking that, despite our bluster, Putin’s taking Ukraine and China’s expanding influence are in their mutual interests and will remain largely unchallenged. That must now change, and it is changing. Until recently, it seemed that Putin might succeed, as he did in Georgia and Crimea, but Putin has miscalculated. His bullying has mobilised Ukraine’s resistance, is galvanizing support for NATO in previously neutral nations such as Sweden and Finland, and is rekindling Washington’s concern about Russia’s threat to global peace.

[Geraint Davies]

The hon. Gentleman will have seen a map drawn by Putin of Ukraine, where a lump is given to Ukraine by Stalin, another lump by Lenin and another lump by Brezhnev. Does he agree that the implicit plan is to take all that bit, to leave a little bit, like a doughnut, for the Ukrainians to be corralled in, to have them like the Uyghur population, to Russify the rest, to finish off Ukraine and to take the large majority of it?

[Sir Bernard Jenkin]

What is completely clear is that President Putin has repudiated his own words and security guarantees that were given to Ukraine on its existing borders.

Last night’s strikes by Russia on Ukraine’s military infrastructure and border guard units, and the incursions of military vehicles, show that there can be no compromise with Putin. We will only find peace through strength. What is there to negotiate? Putin is now seized by an irrational obsession to crush Ukraine by one means or another. His performance on Russian TV addressing his security council underlined how Putin is now acting out his emotions—his frustration, wounded pride and lust for revenge. According to him, only great powers count, and if you cannot bully your smaller neighbours into submission, you are not really a great power.

President Xi is very different from the usurper Putin. While Russia represents great culture and history, Putin’s rogue regime is fundamentally weak, trying to prove its power despite Russia’s internal dysfunctionality and economic failure. China, however, represents a far older, more consistent and altogether more considered philosophical tradition. Putin acts impetuously; President Xi demonstrates strategic patience. Russia is trying to distract from its failures; China is building upon its success. The task of the west is not only to deal effectively with Putin, but to give a clear message to China and to other countries that might consider endorsing or imitating Putin’s aggression.

To his credit, President Xi has now backed off from his earlier strong support for Putin, as he came to realise that a full-scale invasion of Ukraine will mobilise the west and enable the west to strengthen its defences and have a more competitive stance, against not only Russia, but China. China should reflect on the questions now being asked in Washington and Europe, as raised by my right hon. Friend the Member for North Somerset. Why should we not formally recognise Taiwan’s sovereignty and its right to self-determination, if China is to co-operate so easily with Putin in Ukraine? China can use this moment to build trust with the west. The west will continue to have great differences with China, but we want to work together with China for global peace and security and for a sustainable planet. We cannot begin to do so if China aligns itself with the now rogue regime in Moscow.