The Economy

Debate between Jim Shannon and Kelvin Hopkins

Thursday 22nd March 2018 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

It is always a pleasure to speak in a debate, even if, as often happens, it is at the tail-end. I thank all right hon. and hon. Members for their contributions so far and for their specific interests in the economy. I would like to bring a Northern Ireland perspective to the debate.

The economy is an issue that affects every village, town and city in the United Kingdom of Great Britain and Northern Ireland. We all read the grim, doomsday predictions about Brexit, yet we are still here and we are still standing. We will still be here and we will still be standing after 31 March 2019. I am a proud Brexiteer. Indeed, I think the Democratic Unionist party invented the word, because we were Brexiteers before the word was ever mentioned. We have always had concerns about Europe. It is good that we will now leave, and the sooner the better.

Like all Members, I am always interested to receive the constituency-tailored claimant counts, which indicate how the labour market is performing in our areas. I thank the economics, policy and statistics section of the Library for its sterling work, which it provides to us on request and as a matter of rote. Northern Ireland unemployment is down by 3,400 and now stands at 29,000. There has been a very focused economic strategy for Northern Ireland, which has worked out extremely well. We stand at 3.4% across the whole of Northern Ireland. Some constituencies are below that figure and some may be above it.

The total number of jobseeker’s allowance claimants in my constituency in February 2018 was 1,370, or 3.2% of the economically active population aged 16 to 64—the 207th highest of the 650 UK constituencies—but that is down from 5% when I first came into the House in 2010. The equivalent UK claimant rate was 2.7%. The UK unemployment rate, which includes people not claiming benefits and is estimated from survey data, was 4.3% between November 2017 and January 2018. The number of claimants in Strangford constituency is 115 lower than in February 2017, which perhaps indicates that we are moving in the right direction. There were 290 claimants aged 18 to 24 in February 2018, which is 75 lower than February 2017. That, to me, is an indicator that we are progressing. Indeed, as a party colleague highlighted, the latest labour market statistics show Northern Ireland moving in the right economic direction.

It is important to say that we have not had a working, functioning Northern Ireland Assembly for 14 months. In that time, we have experienced some of the greatest growth in Northern Ireland for employment, job opportunities and the economy as a whole. Those are good things, even though we have not had a Northern Ireland Assembly to drive it. Significant employment opportunities have taken place because of the good work of, and the foundations laid down by, the Northern Ireland Assembly, when it was working, and the Department for Enterprise, Trade and Industry. One of my DUP colleagues, in the Belfast Telegraph, said:

“Boosting the economy through private sector growth has been a key DUP priority over the last decade. It is very welcome that private sector jobs are now at their highest level since records began in 1974. We want to see that grow further and significant funding secured through the Confidence and Supply agreement to deliver on key infrastructure projects such as the York Street interchange and the superfast broadband are the foundation of future growth.”

Some Members have referred to the £1.4 billion that the DUP secured with the Conservatives as part of the confidence and supply agreement. We would be happy to assist those who are interested in how to negotiate a good deal.

[Kelvin Hopkins]

I am pleased that Northern Ireland is doing relatively well, in spite of difficulties. Does the hon. Gentleman not accept that a factor in manufacturing doing relatively well in Northern Ireland, and in the rest of the United Kingdom, is the depreciation of the pound following the referendum, and that keeping the pound at a sensible level would be better for Northern Ireland’s future and for the United Kingdom’s future?

[Jim Shannon]

It would be remiss of me to say other than that the value of the pound has enabled our exports to grow and our manufacturing base to maintain its position. The hon. Gentleman is absolutely right.

The DUP’s confidence and supply agreement with the Conservative party has brought in money for everyone in Northern Ireland, regardless of whether they are Unionist, nationalist or anything else. Everybody gains from that agreement.

The House has seen progress on business rates and the small business rates relief scheme. I am very pleased that the Government have continued to ensure that that happens, because it will definitely bring benefit to all the high streets across the United Kingdom. Rates relief has brought opportunities and retained employment in shops in places in my constituency such as Newtownards, Comber and Ballynahinch. Rates relief ensures that we do not have empty shops. Those involved in the retail business say that we have some of the best shopping opportunities in the whole of Northern Ireland.

We have pursued the issues of air passenger duty and tourism VAT, negotiating and consulting with the Conservatives on how the confidence and supply agreement can benefit us, as well as the whole of the United Kingdom. There are advantages for others across the United Kingdom in a reduction to air passenger duty and tourism VAT. We need to be on equal terms with the Republic of Ireland to be able to grow our tourism sector. The DUP is continuing to work on issues that affect the local economy in Northern Ireland, as well as the whole of the UK economy. We are pleased to be part of the economic success story we have in the whole of the United Kingdom of Great Britain and Northern Ireland.

As the briefing paper succinctly put it, in terms we can understand, in 2016-17 the Government borrowed £46 billion to make up the difference between their spending and the income raised from taxes and other sources. Since 2009-10, the UK’s borrowing—often referred to as the deficit—has fallen by 70%, which again is good news. Borrowing is now at a similar level to that before the 2007-08 financial crisis, and the OBR forecasts that it will fall each year to just over £1 billion in 2022-23, which is equivalent to around 1% of GDP. If anyone thinks that this is not good news, they need to take another look at what it is saying. In laymen’s terms, we still have a massive debt—there is no doubt about that—but, in fairness to the Conservative party, it is trying hard to reduce the deficit, and if we continue along the lines we are on, it will be to the benefit of everyone in the Chamber and every one of our constituents.