Oral Answers to Questions

Debate between Hugh Bayley and Justine Greening

Wednesday 17th July 2013 Commons Chamber

[Hugh Bayley (York Central) (Lab)]

T5. In a Westminster Hall debate on 4 July, the Minister of State, who has just left the Front Bench, said that he would take on board my concerns about workers in debt bondage in Pakistan. Will he undertake to get the DFID office in Pakistan to write a plan of action over the summer and then to make a written statement when the House comes back in September?

[Justine Greening]

I am sure that I can speak on my right hon. Friend’s behalf by assuring the hon. Gentleman that we will follow up his comments in that Westminster Hall debate. We have a close working relationship with the new Pakistan Government and it will involve improving the lot of workers.

UK’s Development Work (Girls and Women)

Debate between Hugh Bayley and Justine Greening

Thursday 7th March 2013 Commons Chamber

[Justine Greening]

Yes, I was delighted by that. It was very good of Amnesty to allow me to make my speech at its headquarters here in London. Amnesty has been pressing us for some time to focus more strategically on the work that we are doing, particularly on women and girls in Afghanistan, and I was pleased to be able to set those policies out to Kate on Monday.

[Hugh Bayley (York Central) (Lab)]

I welcome the priority that the Secretary of State is giving to women and girls, and I hope that she welcomes the work that the International Development Committee is doing on the subject at the moment. I once asked the noble Baroness Afshar, before she was appointed to the House of Lords, what would make the most difference to British development policy in supporting women and girls. She said that it would be to ensure that there always had to be a woman’s signature on the cheque book. When the Secretary of State is talking about budget support, will she seek to ensure that, when decisions are taken by the Governments to whom we give money, women Ministers in those Governments are required to sign off any decisions before they are made?

Rail Investment

Debate between Hugh Bayley and Justine Greening

Monday 16th July 2012 Commons Chamber

[Justine Greening]

It absolutely is—my right hon. Friend has been a tireless campaigner to get that investment which communities such as his have so long needed. We are going to get on with the upgrade and the electrification of the midland main line. That will also, incidentally, release long-distance diesel trains, which we can potentially cascade on to other parts of the network, so it will have benefits that go far broader than just the midland main line.

[Hugh Bayley (York Central) (Lab)]

Will the Secretary of State make sure that the electrified midland main line connects to the first phase of High Speed 2, so that Yorkshire gets classic compatible trains running fast from London via Birmingham to Yorkshire just as quickly as Manchester? Will she reflect on her claim that only 10 miles of track was electrified under Labour? After all, High Speed 1 from the channel tunnel to London, a brand-new electric line, was built when Labour was in power.

Rail Reform

Debate between Hugh Bayley and Justine Greening

Thursday 8th March 2012 Commons Chamber

[Justine Greening]

I appreciate my hon. Friend’s kind words. As the right hon. Member for Edinburgh South West (Mr Darling) set out, we have no mean challenge ahead of us, but we know the direction that we want to travel and how we are going to get there. The key now is to make sure that we implement that and that I work with the industry as it gets on with this.

[Hugh Bayley (York Central) (Lab)]

I think I am the only Member in the Chamber today who served on the Bill Committee that considered the Railways Bill that privatised the railways almost 20 years ago. We were told at the time by Conservative Ministers that privatisation would drive down costs and increase efficiency, but we know now that that was not at all the case. Privatisation cost thousands of railway jobs. I still have hundreds of railway jobs in my constituency, but what assessment has the Secretary of State made of the number of jobs on the railways that will be lost as a result of her statement, nationally and in my constituency?

[Justine Greening]

There has never been a better time to be working in the railway industry. We have record investment going into the industry; it is unprecedented since Victorian times. I have spoken to both Network Rail and the TUC about how we can work harder to develop careers in the railway industry and get more women working in the industry—only 13% of Network Rail’s employees are women. There is a huge opportunity ahead of us, not just for passengers and taxpayers but for staff. I hope that everyone can work together to deliver efficiency improvements from which everyone benefits.

Oral Answers to Questions

Debate between Hugh Bayley and Justine Greening

Thursday 23rd February 2012 Commons Chamber

[Hugh Bayley (York Central) (Lab)]

9. What steps she plans to take to limit the bonuses and overall remuneration of executive directors of privately owned but publicly subsidised railway companies.

[The Secretary of State for Transport (Justine Greening)]

Bonuses at shareholder-owned private sector companies are a matter for their remuneration committees and shareholders. I very much welcome the decision by the Network Rail’s executive directors to forgo this year’s annual bonuses.

[Hugh Bayley]

I ask the Secretary of State to think further on that. Of the six private companies that receive enormous subsidies from the taxpayer for running rail franchises, only one publishes information on the remuneration of its directors—the highest paid director receives £344,000 a year. Will she consider publishing, in an anonymised form if necessary, the salaries of all directors and staff of companies that receive money from the taxpayer when those salaries are higher, say, than her own?

High-speed Rail

Debate between Hugh Bayley and Justine Greening

Tuesday 10th January 2012 Commons Chamber

[Justine Greening]

I absolutely want to see the investment in our armed forces that we need for our country, but we also have to make sure that we look to the future for our transport system and the role that it plays in helping our economy to prosper, grow and create jobs. That is what today’s announcement is all about.

[Hugh Bayley (York Central) (Lab)]

The map that the Secretary of State published today shows the network continuing north of Leeds to join the east coast main line. Is she considering joining that at York, and is she aware that there is a major development site right next to York station? If that is her intention, she needs to state it early to make sure that the land is available.

[Justine Greening]

I am very grateful to the hon. Gentleman for flagging up that opportunity. I have no doubt that over the coming weeks and months he will want to set out some of those ideas in more detail. Over the course of this Parliament, we will be putting significant effort into developing High Speed 2—I think we will spend something like £750 million in total—and I am sure the hon. Gentleman will want to ensure that he puts his views forward.

Finance (No. 3) Bill

Debate between Hugh Bayley and Justine Greening

Tuesday 3rd May 2011 Commons Chamber

[Hugh Bayley]

First, I want to compare the records on fuel taxation of the most recent Labour Government and the previous Conservative Government. My view is that the Labour Government were a great deal kinder to the motorist, and the following figures are provided by the current Government. Figures from the Department of Energy and Climate Change show that in 1990, when the Conservatives were in power, 59% of the price paid at the pump by the motorist and road haulier for unleaded petrol was taken by the Government in fuel taxation, and that it rose to 75% during the following seven years of Conservative rule; the Government therefore took more and more and more in taxation. When Labour was in power, however, the proportion of the price of unleaded petrol taken in fuel taxation fell to 65%. The figures for diesel are almost the same. Under the Conservatives, the tax take rose from 57% to 74%, whereas Labour brought it down to 64%.

I would like the Economic Secretary to the Treasury to answer one question in her response, on the following subject. Since the general election, Government policy—not just Conservative policy, but Conservative and Liberal Democrat policy—has been to increase the tax on fuel by about 3p a litre through the increase in VAT and to give back roughly a third of that, 1p a litre, through the reduction in duty. That policy will slightly help road hauliers, because the duty element will reduce. The VAT element increases, but hauliers are able to recover the VAT, or at least pass it on in the VAT they charge their customers. So the effect of the Government’s policy will be to clobber the private motorist to the tune of 2p a litre, because they will have to pay the VAT increase out of their own pockets, while providing slight relief to businesses, particularly hauliers. I say “slight” because the price of fuel has increased as a result of a number of factors, including the increase in the cost of oil and the fall in the value of the pound on the international exchanges. So motorists and hauliers have been clobbered by the market and by the Government, but hauliers are being hit slightly less hard than the private motorist because they are able to recover the VAT increase.

My question to the Economic Secretary is as follows: is it a deliberate act of Government policy to make life slightly easier for businesses but to clobber the private citizen, or is it just an accident that that has happened? This is one of the things that ought to be studied in the review that the Opposition amendment proposes. We should examine the relative merits of taxing fuel for vehicles through VAT as opposed to through fuel duty, and who the gainers and losers are.

My hon. Friend the Member for Wirral South (Alison McGovern) made a very powerful speech about the impact that the increase in VAT on fuel has had on family budgets, and the impact that inflation generally, and fuel inflation in particular, is having on families who are having their earnings squeezed. My Front-Bench colleagues’ amendment proposes that the review ought to consider that matter.

I would like such a review also to consider one other issue, because I do not believe that the Government have yet done so—although I would be delighted to be corrected if they have carried out the sort of analysis that I propose. The review should also examine the impact that taxation has on the demand for fuel. The previous Conservative Government, one and a half decades ago, introduced a fuel price escalator. I understand that their reason for doing so was environmental: they wanted to increase the price of fuel to depress the demand for it, and so reduce carbon emissions. That was the policy intention, and it is one of the reasons why Conservative policies cost taxpayers and consumers so much. I mentioned that the fuel tax take rose from 59% to 75% in their last seven years in office. I wonder whether the Minister can tell me whether that sharp increase in fuel taxation under the previous Conservative Government actually did depress the demand for fuel, because that is an important consideration. If we change the marginal rate of fuel taxation, economics suggest that there should be some elasticity in demand.

The Government say that they want to be the greenest ever, so they ought to consider the carbon emission consequences of changes to fuel duty and VAT on fuel. I hope that Treasury Ministers have taken advice on that from both the Department of Energy and Climate Change and the Department for Transport. They ought to have done, if they really are—[Interruption.] Does the Financial Secretary to the Treasury want to intervene? No, he is back in his seat. The Government ought to take advice before they make such proposals, so that they can assess the environmental impact of a fiscal measure. I am waiting to hear from a Minister, but it sounds as though that has not happened. It ought to if the Government are serious about the environmental consequences of their fiscal policy.

[Justine Greening]

rose—

[Hugh Bayley]

The Economic Secretary wants to intervene, and I hope she can tell me that the analysis has been done and what its outcome is.

[Justine Greening]

I direct the hon. Gentleman to the tax note that we issued at the Budget. The answers to his questions are there; clearly he has not read it yet.

[Hugh Bayley]

I have not read it—[Interruption.] That is why I ask the question. If the hon. Lady would care to read it to the Committee, I would be pleased to listen.

[Justine Greening]

As the hon. Gentleman could not read the note himself in advance of the debate, I shall read it to him now:

“Removing the fuel duty escalator and cutting duty by 1ppl could result in a small increase in CO₂ emissions in 2011-12 of 0.4Mt. However, emissions from road transport are forecast to be approximately 1 per cent lower than current levels by 2015-16 owing to underlying trends in”

fuel efficiency.

[Hugh Bayley]

Is it the Government’s policy, then, to use fiscal measures to reduce carbon emissions? Is that what brought about the carbon variation of 1.4 megatonnes—is that what the hon. Lady said? [Interruption.] It is 0.4 megatonnes; I am grateful to stand corrected. Has the reduction that she mentioned come about as a result of the Government’s proposed fiscal changes, or as a result of the economic downturn that is a result of their policies? There is an important difference. One would expect the fall in economic activity that we have seen as a result of the Budget—the Office for Budget Responsibility has revised down its forecast for growth as a result of the Government’s fiscal measures so far—to lead to a decline in carbon emissions from both road transport and other sources. I am not clear from what the hon. Lady has read out whether the reduction in carbon emissions will be a result of the fiscal measure or of a reduction in demand because of a contraction of the economy.

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[Justine Greening]

The hon. Gentleman’s party does not even have a position on that because Labour Members abstained on it. If the policy in clause 19 is so bad, I expect them to vote against it, but I suspect that it will be another case of abstention making the heart grow fonder. I do not think that that will work with taxpayers, who remember exactly who was planning to bring in the fuel duty escalator had they remained in power.

This Government listened to hard-pressed motorists and businesses. We declined to increase the escalator and to introduce the 1p per litre fuel duty increase, which would collectively have added 6p to pump prices compared with what they are now. Instead, we responded with a £1.9 billion package to ease the burden on motorists at this time of record pump prices. We acted by cutting fuel duty by 1p per litre from 6 pm on Budget day. We cancelled the previous Government’s fuel duty escalator for the rest of the Parliament. We introduced a fair fuel stabiliser that will better share the burden of high oil prices between motorists and oil companies, and so fuel duty will increase by inflation only when oil prices are high.

[Hugh Bayley]

I read from a Library briefing:

“In its Budget in March 1993 the Conservative Government introduced a ‘road fuel escalator’—a commitment to increase duty rates on these fuels in real terms by a specified percentage each year”.

I accept that that was continued for a number of years by the Labour Government before being abandoned, but the Minister should not say that the public do not forget things and then gloss over the fact that it was a Conservative Government who brought in the fuel price escalator.

[Justine Greening]

I will tell the hon. Gentleman one thing we did not do, and that is hand over a huge fiscal deficit to the incoming Labour Government.

[Hugh Bayley]

Will the Minister give way?

[Justine Greening]

No, we have heard enough from Labour Members.

We had to take decisions to support motorists in spite of the catastrophic state of public finances that Labour handed over. We have made sure that there are no fuel duty increases this year by deferring the inflation-only increase that was planned for April to 1 January 2012. This is real help for families and for businesses. As of 1 April, average pump prices are approximately 6p per litre lower than if we had continued with the previous Government’s escalator.

--- Later in debate ---

[Justine Greening]

The hon. Gentleman will be aware that the derogation is to carry out a pilot to look at how we can support rural areas with a fuel duty discount. He is right to point out that we have submitted a formal request to the European Commission, and we wait to hear its response. I assure him that we got on with that derogation request, just as we said we would.

If I may, I will make progress on the issues that have been raised by hon. Members.

[Hugh Bayley]

Will the hon. Lady give way?

[Justine Greening]

I will give way to the hon. Gentleman once more.

[Hugh Bayley]

The Economic Secretary has been extremely generous. A few minutes ago she referred to the deficit and the debt inherited by the incoming Government. Has she forgotten that during John Major’s premiership, the national debt almost doubled, and that during the first 10 years that Labour was in power, the Government reduced the national debt by 40% through good stewardship of the economy?

[Justine Greening]

The hon. Gentleman is obviously one of the Labour party’s structural deficit refuseniks. He simply refuses to accept that the deficit exists. I am sure that he would also refuse to accept that his party left unemployment 400,000 higher by the end of its term in office. We understand the problems that our economy faces and the Budget was all about tackling them.

I will turn to the substance of the amendment. For motorists to realise the benefits of the cut in fuel duty, retailers need to pass it on at the forecourt. If the cut in fuel duty had been fully passed on to average pump prices, including VAT, they would have been 1.2p per litre lower. The amendment seeks a published assessment of the degree to which the cut fed through to pump prices. As I said, we have already published a tax information and impact note that sets out our analysis of the impact of the cut. Following the Budget, the website petrolprices.com, which gives independent average daily prices and which the previous Government used to track prices, showed that average pump prices fell by approximately 0.8p per litre between 23 and 28 March. It can be clearly seen that the reduction in fuel duty largely fed through to prices at the pump. Therefore, prices are lower due to our actions and motorists are benefiting from the cut in duty. Let us not forget that average pump prices are approximately 6p per litre lower as a result of the cut in duty and our scrapping of the previous Government’s planned escalator, which they would have gone ahead with.