Armed Forces (Recruitment Age)

Jim Shannon Excerpts

Tuesday 21st May 2013 Westminster Hall

[Alex Cunningham]

I respect the hon. Gentleman and his work in the military. Perhaps he has more knowledge of the matter than I do, but my understanding is that it is less likely for a person who enlists as an adult to be in front-line conflict. I will check my facts and ensure that, if I address the situation again, I am correct.

The time has come to heed the advice of Child Soldiers International, the Children’s Rights Alliance for England, UNICEF, the United Nations, the Joint Committee on Human Rights and the Select Committee on Defence and raise the lowest age of recruitment from 16 to 18.

[Jim Shannon (Strangford) (DUP)]

I spoke to the hon. Gentleman before this debate. Through my role in the armed forces parliamentary scheme and my contact as a cadet force representative in Parliament for those in Northern Ireland, over the past 20 years I have met some of the most excellent young men and women. They have tremendous qualities and, having been introduced to the Army at 16, are leaders of men today. With great respect, I cannot understand how the hon. Gentleman can advance this point of view when we all have experience of young people who excel at what they do having being inducted at 16.

[Alex Cunningham]

I have no doubt that there are young people recruited at a very early age who go on to excel, but there are some people who might have chosen a different path had they been given the opportunity. I will address some of that later in my speech.

There is no similar under-age recruitment in other dangerous public service vocations, such as the fire or police services. Young people under 18 are legally restricted from watching violent war films and playing violent video games, yet they can be trained to go to war.

Not many people realise that having 16 as a minimum recruitment age is hardly typical among developed and democratic countries. In fact, the UK is the only member of the European Union and the only permanent member of the Security Council that still recruits at 16. We are one of only 20 countries that continue to recruit at 16, while 37 countries recruit from the age of 17. We receive the same criticism as several countries that I am sure no one here would want to see us lumped in with.

The United Nations Committee on the Rights of the Child has asked the Government to

“reconsider its active policy of recruitment of children into the armed forces and ensure that it does not occur in a manner which specifically targets ethnic minorities and children of low-income families”.

I am saddened that such language could be used about our country.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 14th May 2013 Commons Chamber

[Danny Alexander]

First, I congratulate my hon. Friend on the work he is doing on the million jobs campaign to support young people in getting back to work. I echo his words on the employment allowance, which ensures that one person on an average wage and three on the minimum wage can be employed national insurance-free. That should be a substantial incentive, especially for small businesses, to take on more staff.

[Jim Shannon (Strangford) (DUP)]

On skills training and apprenticeships for young people, there is a two- pronged approach: employment opportunities through apprenticeships and skills training. What is the Chief Secretary doing to ensure that companies can provide skills training in conjunction with colleges?

[Danny Alexander]

I hope that the hon. Gentleman will have a look at the employee ownership pilot on apprenticeships, the purpose of which is to put much more of the funding, and more of the control over the way in which apprenticeships are designed and supported through colleges, in the hands of employers to make sure that the skills training that the young people get is suited precisely to the needs of the employers concerned.

Finance (No. 2) Bill

Jim Shannon Excerpts

Wednesday 17th April 2013 Commons Chamber

[Alison Seabeck]

My hon. Friend is right and has flagged up yet another unfairness about what is proposed.

We have an example of the Government bearing down on the less well-off—those who are suffering because of the bedroom tax. Those people could probably never afford a mortgage, however desirable an ideal that might be. The Government are effectively expecting those people on low incomes to fund and support other people to buy new homes.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Lady for being gracious enough to give way to everyone who has wanted to intervene. Does she feel that there should be an incentive for parents or grandparents who either have savings or could remortgage their homes to provide a deposit for their children or grandchildren? Could that not enable first-time buyers to get on to the ladder in their 20s rather than at 37, as was mentioned earlier?

[Alison Seabeck]

The hon. Gentleman makes an interesting point, and I will briefly touch on it later. I suspect that it could be possible for parents to buy for children.

People struggling to get a mortgage and those who want to own their first home must be a priority for help, not the small number of people who can afford to buy a second home. What checks will be introduced to prevent abuse of the scheme, so that people are prevented from applying in the names of their sons and daughters, cats and dogs?

The key fact is that not enough homes are being built. The Government must focus on that issue and on listening to the voices of those who understand the market. They should not simply dismiss out of hand the Opposition’s new clause, which would enable the public to have a better understanding of who benefits from the scheme. Is it foreign investors, parents buying second homes for their children or people seeking to rent the property in the long term?

What checks will be put in place if somebody applies to the scheme saying that they are not going to let the property, then sits on it for a time and subsequently opts to rent it out? Perhaps people could use the scheme for a straightforward holiday home purchase, as I mentioned in relation to Plymouth and the South Hams. Where are first-time buyers in the process? For me, they are singularly missing.

--- Later in debate ---

[Andrew Stunell]

Indeed, and I will move on to that shortly. Based on all that has gone before, I think that the Minister will say that the Government have every intention of ensuring that those things happen and that the work being promoted by the IF campaign becomes mainstream in this House and the outcome we all wish to see. I support that campaign and its objectives and am keen for the Government to adopt them and be supportive as well. Indeed, my hon. Friend the Under-Secretary of State for International Development is sitting just in front of me on the Front Bench, and I know that she works very hard on those matters as well.

I do not think that the trinket presented to us in amendment 6 is the core of what we need. I challenge the Government to give an undertaking that the proposals in the Finance Bill will be moved on so that multinationals are required to reveal the tax avoidance schemes they are using in the developing world and developing countries are helped to collect more of the tax they are owed. I pay tribute to the work, which I think was initially promoted by the International Development Committee in the previous Parliament, and which I know this Government have taken up with some enthusiasm, of supporting developing countries to create effective tax systems of their own. I know that the work that has been done in Zambia is seen as a template for other countries around the world. I encourage the Government to move forward in that direction.

[Jim Shannon]

The right hon. Gentleman is bringing to the Committee’s attention the issue of large multinational companies avoiding tax in other countries around the world. Does he agree that it is an issue not only for this House, but for other investment countries, such as the United States, and that together we can address the problem of big companies trying to avoid tax in third-world countries?

[Andrew Stunell]

Yes, I very much agree. Indeed, I have heard Ministers say that they agree. It is why it is important to work through the G8, the OECD and even the UN to get some level of international engagement on that. As is so often the case, those necessary and important international outcomes cannot be achieved by one country taking an initiative on its own. That does not deter me from arguing that the United Kingdom should be giving the necessary leadership, but I think that we have to be realistic about how we can achieve those outcomes.

amendment of the law

Jim Shannon Excerpts

Monday 25th March 2013 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I welcome the many good things in the Budget, but I want to focus on one omission. The Prime Minister and the coalition have suggested that marriage should be recognised in the tax system, but yet another Budget has not recognised it. Other countries across the OECD have recognised it, but Great Britain has not. That point has to be underlined. The Prime Minister was right to commit to bringing us back into line with international best practice, and the benefits of marriage to individuals, families and society are considerable and plain to see, yet the Government have again singularly failed to deliver.

The greater benefits of marriage reach out beyond the family structure, leading to stronger and more cohesive communities. The Relationships Foundation has shown that the cost of family failure has increased to a staggering £44 billion, which means that failed relationships across the United Kingdom cost the taxpayer £1,470 each per year. In that context, the Government should be doing all they can to support family stability, and that is best secured by supporting marriage. They should be encouraging and supporting marriage and the bond of commitment, not making it harder to marry in this country than across the rest of the OECD. Again, the Government have failed to address that issue.

In recent years, the Government have said repeatedly that they back recognising marriage in the tax system, but the reality is very different. It was a headline commitment in both the Conservative manifesto and the coalition agreement. If that is not enough, public support for a transferable allowance is plain. A 2012 YouGov poll showed that 70% of people who expressed an opinion supported a tax allowance for married couples. So why the inaction?

On 3 July 2012, I asked the Exchequer Secretary two questions on this matter. First, I asked whether the Government would honour their commitment to recognise marriage in the tax system. He did not answer. Then I asked him about implementation. Nine months later, I hope to get an answer to that question. I want to quote what I said that day:

“Recognition of marriage in the tax system will require HMRC to make various operational changes, particularly in the IT systems. Can he reassure us that this preparatory work is already under way so that when the Government bring forward legislation to recognise marriage in the tax system there is no further delay? If he cannot do so tonight, will he make it an urgent priority to make a statement to the House setting out the time that will be required to change the IT systems and announce that he has instructed that work to begin in readiness for the introduction of the transferable allowance legislation?”—[Official Report, 3 July 2012; Vol. 547, c. 880.]

This issue is even more pressing today because, unlike the last Budget, this Budget is quite possibly the last opportunity the Government will have to introduce the necessary Budget resolution if transferable allowances are to be up and running by the next election. If they take more than 12 months and the Government wait until the 2014 Budget, that means there will almost certainly be no transferable allowance in place at the next election. That would be tragic. I very much hope that the Minister will be good enough to answer the question today and explain either that the process will take significantly less than 12 months, so that the system can be introduced at the Budget and fully implemented within the time frame of the coalition agreement—that is, before May 2015—or that the Government will amend the Finance Bill so that the IT changes can start now.

People feel alienated when manifestos are not delivered on and promises are not kept. It is not too late to put it right tonight.

Tax Fairness

Jim Shannon Excerpts

Tuesday 12th March 2013 Commons Chamber

[Chris Leslie]

It would be a great loss for the House to lose some of the skills and contributions of Liberal Democrat Members. Perhaps at our next Opposition day debate a Liberal Democrat protection order should be on the agenda. They may cling on in a number of ways in different places.

I am surprised that the Liberal Democrats do not support the mansion tax proposition. It is hardly surprising that Conservatives do not support the idea. After all, half of them are in politics to defend the wealth of the wealthiest, and the other half will probably need to declare an interest before they speak on the issue.

Let us consider the mansion tax in relation to the other tax benefits that the richest 1% receive. If the Lib Dem design for a mansion tax were to be enacted, it would just recoup a mere fraction of the money being given away to high net worth individuals in the millionaires’ tax cut from April—the first of too many examples of unfairness. In the last Budget, the Chancellor took the decision to hit pensioners with the so-called granny tax, which is more accurately described as a freeze on the old age personal allowance and has caused widespread disgust, especially because the Government chose to use the money to fund a cut in the higher rate of income tax. That is not fair and it is not right, and it certainly should not be part of the society we want to build. Even Liberal Democrats must know that it is deeply resented across the country, yet the Government continue to clobber lower and middle-income families, whether by freezing the maternity pay of new parents, taking child benefit away in a fiendishly complex tax assessment process or reducing the value of the tax credits on which so many working people rely. They cannot even ensure that the money men pay their fair share, with a bank levy that for two years running has undershot the supposed target of £2.5 billion that the Chancellor claimed it would collect.

On maternity pay, the bedroom tax and the cuts to tax credits, the Government have their priorities all wrong. They are handing a tax cut to millionaires when millions of hard-working families pay more. Voting for the motion is an opportunity, especially for the Liberal Democrats, to tell the Government that they need to rebalance their priorities.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for introducing an admirable motion. Does he agree that it is not just about tax cuts for millions of people on middle and low incomes, but that it could also be an incentive for first-time buyers to get on to the first rung of the ladder? They do not want to buy a mansion, just a first house. Should the money be used for that too?

[Chris Leslie]

The hon. Gentleman makes an important point about finding ways to help those who aspire to own their home. I am certainly interested in discussing options for how that might be achieved, because it is important. It is becoming very difficult for people in those circumstances. They are the home owners that we really need to focus on. It is amazing that so many Government Members want to defend the massive super-wealth of those with properties of £2 million and above. All we want is that they pay their fair share, as the motion states in plain and simple terms. We are giving a timely pre-Budget opportunity for the House to express support for or opposition to a mansion tax as

“part of a fair tax system.”

It could not be more straightforward. The country is crying out for a tax system that focuses on helping the majority of the public and ensures that the wealthiest 1% pay their fair share.

First and foremost, Government Members have a duty to their constituents, who will be astonished if their MP flunks this opportunity to make real change because they are suppressing their principles in a bid to cling on to power.

Infrastructure

Jim Shannon Excerpts

Tuesday 12th February 2013 Commons Chamber

[James Morris (Halesowen and Rowley Regis) (Con)]

Unusually, I would like to start by thanking the Leader of the Opposition for choosing the subject of this debate, even if the text of his motion is fundamentally flawed. In the language of “Yes Minister”, it is extremely courageous of the Opposition to choose a debate on a subject on which their own record is so weak, particularly when they would have cut investment by 50% had they won the last election. I agree with the Leader of the Opposition that investment in infrastructure is vital to the economy’s long-term prosperity. It is also vital that we take effective action today to address the infrastructure deficit left by the previous Government.

There is no question that poor infrastructure discourages inward investment. As Professor Dieter Helm wrote towards the end of the last Labour Government in 2009:

“Few would choose to locate in Britain because of its infrastructure”.

He went on to describe it as

“not fit for the digital age”.

Bringing our infrastructure up to a standard that businesses and residents should be able to expect is essential if we are to create the flexible and successful economy on which prosperity will depend.

One of the most damaging legacies the Government inherited was the unsustainable imbalance in the economy that had built up over previous decades. We cannot build the prosperity we need based on London and the south-east alone and we cannot unlock the potential of the whole country without the modern infrastructure that makes doing business across the country and around the world as straightforward as it can be.

The prosperity gap between the black country, part of which I represent, and the south-east grew out of control under the previous Government. Gross value added per head in Dudley and Sandwell fell from 88% of the national average in 1997 to just 74% in 2008. World-class transport infrastructure such as the HS2 scheme will play an important role in closing that gap. We need to make it as easy to do business with Frankfurt, New York and vital emerging markets from our regional cities as it is from the City of London.

Labour left a rail system rapidly approaching capacity. Network Rail forecast that the west coast main line would be completely full by 2004. The inter-city rail network would be unable to cope without the additional capacity that will provided by HS2, and I am proud that the Government are taking the bold steps necessary to take that scheme forward. Businesses thinking of locating in my constituency know that they will have regular connecting services from the three main line stations in my constituency to the HS2 terminal in Birmingham, offering fast routes to London and later to Manchester, Leeds, Edinburgh and Glasgow.

I would like to make one representation to the Minister. That investment, which is so important to bringing our largest cities together, must be complemented by a new focus on the importance of our regional airports. Whatever the rights and wrongs over the debate about expanding Heathrow, there can be no doubting the benefits of making better use of existing and potential capacity at airports outside London. Building a second runway at Birmingham airport, for example, would increase spare capacity to 50 million passengers per year, creating or sustaining 50,000 jobs. Transforming Birmingham, Manchester and other regional airports into additional hub airports would transform our regional economies and relieve some of the pressure on Heathrow.

[Jim Shannon (Strangford) (DUP)]

Does the hon. Gentleman think that we also need to increase the turnover and capacity of regional airports in Scotland and Northern Ireland, particularly Aldergrove, Belfast city and Londonderry airports, in order to strengthen the economy across the whole of the UK?

[James Morris]

The hon. Gentleman makes a very good point. We need to encourage greater use of capacity for all our regional airports, as part of the vital effort to rebalance the British economy in the way I described.

Transport infrastructure is not only vital to business, but essential to people’s everyday lives. As the Minister said, the previous Government explicitly set out to price people out of their cars in order to reduce demand for investment in road infrastructure. Instead, we need to look at how we can make our roads better. My constituents are pleased that the Government are investing more in local roads through the highways maintenance block grant to councils. Unfortunately, Labour’s record in local government highlights the hypocrisy of the Opposition’s motion. People in Dudley borough have benefited from £2 million of additional investment in local road maintenance. Unfortunately, the new Labour administration is cutting the road maintenance budget by the same amount, pound for pound, as the additional funding from the Department for Transport. Labour in local government has shown time and again that, as far as it is concerned, infrastructure spending is a very low priority, but residents know that we cannot build a strong local economy with third-rate local infrastructure.

Financial Services

Jim Shannon Excerpts

Wednesday 6th February 2013 Commons Chamber

[Greg Clark]

The hon. Gentleman makes an important point that will be considered by the commission, which is looking into the culture. It is important that banks recognise that they exist to serve their customers—that is their purpose and the reason why they operate. My recent experience of speaking to some bank boards leads me to believe that they recognise the commercial imperative for that, but he makes a suggestion that I am sure our colleagues will consider.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister firmly for his statement. In particular, I thank him for the £35 million of fines imposed on the banks that will go directly to the armed forces community; £5 million will go to the Imperial War Museum. Will he confirm the criteria by which charity groups such as the Royal British Legion, the Army Benevolent Fund, SSAFA and Help the Heroes can qualify for financial assistance through the fines on the banks?

[Greg Clark]

As I said in my statement, we will make further announcements on the disbursement of the funds, but they have been earmarked and reserved for the military community.

Taxation (Living Wage)

Jim Shannon Excerpts

Tuesday 22nd January 2013 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Member for Harlow (Robert Halfon) on bringing this matter to the House for consideration. I want to give a Northern Ireland perspective and to discuss the importance of small and medium-sized businesses, particularly for my constituency, but also for constituencies across the rest of the United Kingdom.

Times are tough for many families throughout the UK. They face stagnating wages, coupled with rising costs. Many small businesses are struggling and cannot afford annual pay rises. The question in many families is, is it better to be in or out of work? The cold reality of the market out there has pressed many of them to make a decision about that.

The Government have shown that they are attempting to address the situation through the uplift of the personal allowance threshold. That should mean that approximately 250,000 workers on low pay no longer have to pay income tax, which has to be good news. The same uplift will also mean that most basic and higher-rate taxpayers will pay £47 less tax from April, after the Chancellor increased their tax-free limit to £9,440 a year.

The Chancellor has indicated that the steps the coalition has taken have increased the number of low earners lifted out of tax to 2.2 million. Again, that is good news, and things are going the right way. The amount of tax paid by people on the minimum wage will have been cut in half by next year. From next April, the personal allowance will rise by a further £235, so the total increase next year will be £1,335—the highest cash increase ever. Over the past two years, the Government have announced total increases to the personal allowance of £2,965, with the aim of reaching a £10,000 allowance in this Parliament.

I read the report of the debate about paying a living wage, which would help many people. Northern Ireland has the highest proportion of people earning below the living wage in the UK, at 24%, and is followed by Wales, at 23%. The lowest proportion of sub-living-wage earners is in London and the south-east; in both cases, it is 16%. However, the number of people affected in London is 570,000. In the north-west, it is also 570,000, while in the south-east, it is 530,000. In terms of the numbers, therefore, those are the most affected areas, but they do not compare with Northern Ireland in percentage terms.

A study showed that workers in the hospitality industry are the worst affected, with 90% of bar staff, and more than four out of five waiters and waitresses, or 85%, paid less than the living wage. The study also showed that 75% of kitchen and catering assistants, as well as launderers and dry cleaners, were paid less than the living wage. Similarly, 70% of cleaners and florists received less than the living wage. Clearly, those figures are of some concern.

[Mr Jim Cunningham]

There has been a whole range of price increases on things such as travel, as well as benefit cuts. In tax terms, would the reintroduction of the 10p tax rate offset that and take people to the level of the living wage?

--- Later in debate ---

[Jim Shannon]

I wish I knew how that would work. I cannot answer that question; the person who can is perhaps the Minister. I hope that that would happen, but I cannot say that it definitely would. Perhaps the Minister can comment on that when he responds.

Small and medium-sized businesses make up more than half the UK’s business population. As such, they are not a minority, and they should not be overlooked or ignored. That is what I want to focus on. The Federation of Small Businesses has said that Northern Ireland has the highest concentration of SMEs—companies with fewer than 250 employees—in the UK. There is not one business in my constituency that employs more than 250 people, so SMEs are very important for the people I represent. Those SMEs account for 81% of all private sector employment and 79% of all private sector turnover. In contrast, less than 1% of the private sector consists of large firms, which account for less than 20% of total employment and 21% of turnover.

Small businesses employ 65% of the private sector work force in Northern Ireland, compared with 62% in Wales, 48% in Scotland and 46% in England. Small businesses account for a greater proportion of turnover, contributing 60% of all private sector turnover, which is, again, higher than in Wales, at 46%, in Scotland, at 40%, and in England, at 36%. Some 54.5% of gross value added was produced by small businesses, which are those with nought to 49 employees, while a further 27% was produced by medium-sized enterprises, which are those employing between 50 and 249 people. In total, SMEs accounted for 81.6% of GVA.

Those figures indicate the importance of SMEs, which are critical for the future, particularly in my constituency. The Prime Minister has indicated that he wants to build up the private sector, but we need to do that before we try to downsize the pubic sector. The statistics show how essential those businesses are to the economy. I wonder how many of them could afford, in these difficult days, to up their wages bill when they are already struggling to stay afloat.

This year will be critical for a great many industries, in my opinion and the opinion of many others more expert than I am. I know of more than one business in my town that has downgraded from two shops to one, but which has kept the same staffing levels in the hope of reducing overheads and not having to make staff redundant. For the owner, the most important thing is not to make staff redundant—not to send people to the unemployment queue. He cares about his staff and does not want them to be out of work. However, he has children to feed, as they do, and if we asked him to pay his eight staff more wages, he could not. He would either have to lay some off, or close altogether. I know that that story is being replicated throughout the UK, as even businesses that were thought to be established call in the administrators and close their doors. Can we honestly expect the small retailer to take up the slack? We hope that he or she can do it, but we are not sure.

Can we force the onus of economic recovery on to shop owners, or does it lie in this place? I believe it lies in Parliament and with the Assemblies. We must encourage small businesses to pay their staff what they can; but there is also a need for decisions for growth and the encouragement of business investment in local economies, and for the creation of employment and spending power. A living wage is a great target to aim for, but that will be brought about not through legislation but through good governance from the House and the devolved Assemblies; the Northern Ireland Assembly has a particular role to play. We need to focus on those issues, and when economic conditions are right—which we hope will be soon—we can expect employers to play their part in making things better for their employees.

Outsourcing of Public Services

Jim Shannon Excerpts

Tuesday 18th December 2012 Westminster Hall

[Chris White (Warwick and Leamington) (Con)]

I called for a debate this afternoon on the outsourcing of our public services. I am grateful to Social Enterprise UK, in particular Celia Richardson, for putting together the report, “The Shadow State”, and for raising this important matter and providing fresh insight.

Although politicians can easily become fixated on the high-level discussions in politics, we need to remember that one of the most important roles of government for most people is the provision of high-quality, front-line public services. Over the past 200 years in Britain and throughout the world, Government have become more and more central to the delivery of services vital for millions of people: health care, child care, policing, prisons, helping people back to work, education and transport are just a few of the areas that the public sector reaches. Since 1945, Britain has seen a vast centralisation of such responsibilities away from the local level and from independent organisations and towards central Government. In 2010 prices, the budget has gone from £234 billion in 1945 to £660 billion.

A large proportion of the budget has been spent on public services, and we have seen massive improvements in many areas. I am proud of some of the achievements that have been secured, but we face difficult economic times and cannot expect to keep spending large quantities of money in order to increase the quality of public services. The vast structures of the public sector, which were appropriate in the 1940s and ’50s, are now starting to struggle to deliver the improvements in services and the productivity increases that we need for the decades ahead.

Over the past 20 years, Governments of all colours have increasingly turned to the private sector for delivery of public services, in order to reduce costs and to provide better outcomes. Oxford Economics has estimated that the current outsourced market for public services has an annual turnover of £82 billion, representing 24% of the total spend on goods and services by public services. Rightly, therefore, in July 2011 the Government released their “Open Public Services” White Paper, which sought to lay out the future direction of public services through five key principles: first, wherever possible to increase choice; secondly, to decentralise public services to the lowest appropriate levels; thirdly, to open public services to a range of providers; fourthly, to ensure fair access to public services; and, fifthly, to make public services accountable to users and taxpayers alike.

[Jim Shannon (Strangford) (DUP)]

Is the hon. Gentleman aware that a recent Confederation of British Industry report stated that more opportunity for private and independent sourcing of public services could produce savings of £22.6 billion, while maintaining the quality of service? Is that what we should be looking at?

[Chris White]

I appreciate both the point made by the hon. Gentleman and the CBI’s report. I will be coming to some of those issues later in my comments.

I support those five principles, which I am confident that Members in all parties support as well. The Government have been clear that they are seeking to increase the amount of public services delivered by independent organisations. Seymour Pierce has predicted that the value of the public services sector will increase to £140 billion by 2014. That is a huge amount of public money and, rightly, we should be concentrating on how that money is spent and on how we ensure maximum benefit for our community. A concern, however, is that the principles outlined in the “Open Public Services” White Paper, to make our public services more accountable, more transparent and more in the control of communities, have not been realised in practice.

One deep concern is explained in the Social Enterprise UK report, “The Shadow State”, which has highlighted a significant lack of transparency and accountability, with information from those delivering our public services hard to come by. It also highlighted the increasing dominance of our public services by a small group of large multinational businesses and the difficulties that small business, charities and social enterprises have experienced in accessing provision of our public services.

The Economy

Jim Shannon Excerpts

Tuesday 11th December 2012 Commons Chamber

[Ms Ritchie]

I thank the hon. Gentleman for his intervention. I agree that the banking regime in Northern Ireland is stringent at the moment. We have a unique situation in Northern Ireland. Some of the banking institutions are owned by the south of Ireland, but some have direct links to the Royal Bank of Scotland and Danske Bank. So there is that sort of mix as well. Suffice it to say that small and medium-sized enterprises are facing difficult economic challenges, and to have banks unwilling to lend or provide the necessary credit at this difficult time is not helping economic growth. That needs to be explored by the Treasury and, in the case of Northern Ireland, in some instances, directly with the Department of Finance in Dublin.

[Jim Shannon (Strangford) (DUP)]

Does the hon. Lady think that one way of boosting the economy would be to encourage the construction industry, which, as all Members know, has had particular problems? Does she think that the banks should be more sympathetic to the construction industry in particular?

[Ms Ritchie]

I agree that the construction industry, along with agriculture and tourism, is a vital economic lever in Northern Ireland, but, owing to the economic challenges of the recession, many people employed in the construction industry have found themselves without work and many businesses have gone to the wall. They did not meet with a sympathetic reception from the banking institutions, but they need assistance because they are necessary to pump-prime our local economy.

The Chancellor’s welfare plans will remove more than £4 billion from the welfare budget by uprating benefits by just 1% a year until 2015. With a legacy of physical and social neglect from the troubles, this will remove the necessary level of support from many of our people and a substantial sum of money from the local economy. Instead of addressing their own shortcomings, the Government are vilifying the poor and those on welfare as a smokescreen for their own appalling economic record. That will place those most needy and vulnerable in the current economic climate in an even more precarious situation and will hurt not just the unemployed, but those who rely on in-work benefits. It is nothing more than a real-terms cut for those most in need by the same Chancellor who handed out a tax cut for the wealthiest in society at the last Budget. It would seem that some of us are more “all in this together” than others.

The autumn statement might have been politically more surefooted than the Chancellor’s last Budget, but I fail to see what it will do to address the core problems facing the economy. It might reassure some Tory voters here, but I do not think that my constituents or the people of Northern Ireland will find much to cheer about. I fear that we will be having this same debate, with similarly poor economic figures, come the next Budget.