Fuel Duty

Julian Lewis Excerpts

Monday 12th November 2012 Commons Chamber

[Robert Halfon]

Unfortunately, I am just a brand-new MP and I do not have the luxury of having discussions with the Chancellor. I have no idea what is in his lunchbox, but I do know that the Government have a record of cutting fuel duty. That is something that I am proud of and to which I can give strong support.

[Dr Julian Lewis (New Forest East) (Con)]

Will my hon. Friend accept the assurance, as least from Government Members, that if the rise does not go ahead it will have far more to do with his campaign than anything the Opposition have done?

Beer Duty Escalator

Julian Lewis Excerpts

Thursday 1st November 2012 Commons Chamber

[Mr Denham]

The hon. Gentleman again makes a fair point. I say to the Treasury Minister on the Front Bench, the hon. Member for Bromsgrove (Sajid Javid), that in addition to reviewing beer duty and changing the planning laws, the way in which these big companies operate needs to be looked at.

The hon. Member for Bristol North West (Charlotte Leslie) talked about the big society. We cannot have a big society if two big companies shut the community out. Labour Members talk about responsible capitalism; it is not responsible capitalism if big companies collude to stop small entrepreneurs starting up businesses of the sort we want to see in our communities.

In every one of the cases I have raised where a Southampton pub has been turned into a convenience store, that pub offered a safe, social environment for the responsible consumption of alcohol, and it was replaced by an off-licence that trades on cheap booze. I am not saying nothing ever goes wrong in a pub, but there are social constraints on how much people drink and how they behave. If the outcome of public policy is that we lose the places where alcohol is consumed responsibly and replace them with outlets for cut-price booze that encourage people to drink too much at home, where those constraints might not exist, there is something wrong with public policy. The message from Members on both sides of the House is that the Government need to look at beer duty and the wider context.

The Minister on the Front Bench and other current Treasury Ministers, along with previous Treasury Ministers over many years, have all said—because this is in the word processor in the Treasury—that it is difficult to untangle the impact of beer duty from the other factors affecting pubs. Of course that is true, but that is no reason for not looking at beer duty and all the other factors affecting pubs.

[Dr Julian Lewis (New Forest East) (Con)]

I thank the right hon. Gentleman, my near neighbour, for giving way. To encourage him in his line of argument, may I say that when my party was in opposition we had a standard letter to send to people who inquired about beer duty, saying we were launching a campaign entitled “save the great British pub” and urging them to sign the online petition? I am sure, therefore, that the Minister will want to give a positive response to the right hon. Gentleman’s excellent speech.

[Mr Denham]

I am sure the last thing the Minister would want to do is embarrass his party colleague by causing him to tear up the letters he was honestly, and with integrity, sending out just a few months ago.

IMF

Julian Lewis Excerpts

Monday 23rd April 2012 Commons Chamber

[Mr Speaker]

Order. There is still extensive interest in the subject, which I am keen to accommodate, but if I am to do so, brevity is of the essence.

[Dr Julian Lewis (New Forest East) (Con)]

When one’s friends are trapped in a burning building, is not the kindest thing to do to lead them in the direction of the exits in an orderly way, rather than give them billions to stay exactly where they are?

[Mr Osborne]

I would say that it is to make sure that the fire brigade has enough water to deal with the problem.

Oral Answers to Questions

Julian Lewis Excerpts

Tuesday 1st November 2011 Commons Chamber

The Chancellor of the Exchequer was asked—

[Dr Julian Lewis (New Forest East) (Con)]

1. What assessment he has made of the potential effects on UK interests of the creation of an economic government of the Eurozone.

[The Chancellor of the Exchequer (Mr George Osborne)]

We have had positive gross domestic product numbers this morning, but the biggest single boost to the British economy this autumn would be a lasting resolution of the euro crisis. Such a resolution requires, among many other things, greater fiscal integration within the eurozone as it follows the remorseless logic of monetary union. We have made it clear that Britain will not be part of that fiscal integration, and that issues affecting Britain, such as the single market and financial services regulation, must continue to be decided at EU level.

[Dr Lewis]

If the Liberal Democrats had had their way, we would have joined the euro with disastrous consequences. Now, the liberal Conservatives are advising us to support fiscal union in the eurozone, which will lead to economic union and a single government. How does my right hon. Friend really feel about a policy undermining the system of democratic states in Europe that gave the continent peace for more than half a century?

[Mr Osborne]

Those who were against Britain joining the euro, including my hon. Friend and me, were against it partly because we felt that it would lead to greater fiscal integration. That was one of the arguments for keeping Britain out. There is a remorseless logic driving monetary union towards greater fiscal integration, but it is in Britain’s overwhelming economic national interest to have stability in the eurozone, so I think that that fiscal integration is part of what is required. Of course, we have to ensure that Britain’s interests are protected, that we are not part of that fiscal integration, and that issues such as the single market and financial regulation are conducted at the level of the 27.

--- Later in debate ---

[Mr Osborne]

The right hon. Gentleman shakes his head, but in 2011 the British economy has grown at exactly the same rate as the United States economy. It has taken a completely different course from the one that he suggested as shadow Chancellor and yet it has the same growth, which shows that what we are doing is bringing stability to the British economy. Frankly, for him to get up every week and say that we need a deficit reduction plan, but not to give us any details, shows how hopelessly out of touch he is.

[Dr Julian Lewis (New Forest East) (Con)]

T4. If the Greeks can have a referendum on Europe, why can’t we?

European Union Fiscal Union

Julian Lewis Excerpts

Wednesday 14th September 2011 Westminster Hall

[Mr Hanson]

On many occasions I voted differently, because the purpose of the Opposition was to keep the Government on their toes and divided—as, indeed, we see today in the interactions between Back Benchers and the Minister.

I pay tribute to other Members who have spoken. The consistency of my hon. Friend the Member for Luton North (Kelvin Hopkins) is unparalleled, although his approach has differed from that of Labour Front Benchers. The hon. Members for Northampton South (Mr Binley) and for Witham (Priti Patel) hold strong convictions on this subject, which does not come as a surprise to hon. Members or to their constituents.

I confess that I feel like an onion in a strawberry patch, as I take a different view of the benefits of our relationship with Europe and with the European Community. I want the Government to engage positively, not within the potential framework of withdrawal—the tone that percolates through the comments of the hon. Member for Stone and his colleagues and of my hon. Friend the Member for Luton North—but in tackling deep and serious issues of economic policy, and ensuring growth, stability and fairness across the European Community.

As I said, I feel like an onion in a strawberry patch because I hold positive views about Europe and the European Community. Our EU membership gives British companies full and direct access to 500 million consumers —the single market that Governments of all parties have supported. The 3 million jobs in the United Kingdom—10% of the work force—linked directly to the export of goods and services to the EU exist partly because of the structures of the European Community.

Our EU membership makes the UK an attractive place for investment from Europe and creates stability for the emerging countries in the east, the growing markets. Furthermore, the EU brings democracy to countries that when I was first elected were still under dictatorships and were not the positive members of Europe that they are becoming today.

[Dr Julian Lewis (New Forest East) (Con)]

I thank the right hon. Gentleman for giving way, but this really will not do. He is making a general defence of the European Union in a debate on fiscal union, and the fact remains, as many of us have argued for many years, that there cannot be a single currency without a single economy, there cannot be a single economy without a single Government and there cannot be a single Government without a single state. That is why the Eurofederalists want fiscal union, and regardless of whether it works or fails they say we should have more union. The reality is that it is failing and we must disentangle ourselves from this mess, not have a general debate on trade in the European Union.

[Mr Hanson]

If the hon. Gentleman allows me, I shall cover some of those points in a moment. It is important to record the fact that we have economic growth partly because of co-operation, because of the single market, because of the widening of the European Community to the east and because of EU investment in this country.

--- Later in debate ---

[Mr Hoban]

I think that there is a great deal of work to be done on this and that it is my hon. Friend who is putting his head in the sand. We need a successful euro area if we are to protect jobs and businesses in this country. We can see some of the impact on the economy today as a consequence of the uncertainty in the eurozone. We have seen the impact in the form of growth in France and Germany being below the rate of growth in the UK in the second quarter. These issues have an immediate impact on what happens in our constituencies and businesses. We need to ensure that the eurozone is successful if we are to continue to have a successful economy.

[Dr Julian Lewis]

Will the Minister give way?

[Mr Hoban]

No, I am going to continue. [Interruption.] No, I have four minutes left and there are more things that I need to say. My hon. Friend would have had a chance to speak earlier if there had been a more even division of time.

The situation in the euro area remains one of great concern. Market tensions have persisted since the euro area summit of 21 July. The European Central Bank’s purchase of an additional €70 billion of euro area bonds since early August has been accompanied by an alleviation of some of those tensions, but Greek 10-year bond yields are at a new high of about 20% and Italian and Spanish 10-year bond yields remain high. Commitments were made at the summit of 21 July to enhance the scope and flexibility of the European financial stability facility, to lengthen the maturity of euro area loans and to lower interest rates. Those commitments must be implemented in full. Euro area countries need to get ahead of the curve and move towards a more permanent, comprehensive solution to the ongoing crisis.

Several further proposals for greater fiscal integration in the eurozone have been put forward, most notably by President Sarkozy and Chancellor Merkel following their summit of 16 August. There will be further debate about that, but let me be clear: nothing in the agreement of 21 July or in the current proposals put forward by Chancellor Merkel and President Sarkozy requires a treaty change or a transfer of powers from the UK to the EU. That is the state of play at the moment, but it is clearly not possible to say where the debate on fiscal integration may end up.

As the Chancellor has already told the House, more radical proposals should be considered as part of a permanent solution for the euro area, including measures such as euro bonds or other forms of guarantee. However—this goes back to the point made by my hon. Friend the Member for Northampton South—any move in that direction needs to be matched by more effective economic governance in the euro area to ensure that fiscal responsibility is hard-wired into the system. I am pleased that he recognised the need for those monitoring controls to be in place.

Although euro bonds or other guarantees could be designed in a number of ways, it is possible that such a proposal would require a treaty change. If that were to happen, the Government would act to protect the UK’s national interest, as we did last December when leaders agreed to amend the treaty to allow the creation of the new, permanent crisis resolution mechanism. As my right hon. Friend the Prime Minister said when he appeared before the Liaison Committee last week, we will take that opportunity seriously. He said that

“when there is a treaty change, you have an opportunity to put forward what you want in your country’s national interest. I have done that once already, and I would do it again in the future.”

He also said:

“Britain should think carefully about how to maximise our national interest if that”—

treaty change—

“were to come about, but I think that it is some way down the road.”

We need to ensure that there is a strong eurozone and, as hon. Members said, a clear growth agenda in the EU. The current position is one of the barriers to those countries digging themselves out of the recession. However, we should not underestimate the value of the European Union to this country. It adds £600 billion a year to the economy. Further liberalisation could add a further £800 billion to the value of the economy. We need to ensure that we get this right. It is in our national interest to get it right, and we will work to ensure that we do so.

Equitable Life (Payments) Bill

Julian Lewis Excerpts

Tuesday 14th September 2010 Commons Chamber

[The Financial Secretary to the Treasury (Mr Mark Hoban)]

I beg to move, That the Bill be now read a Second time.

The Government want to see justice for Equitable Life’s policyholders and that is clearly reflected in the actions that we have taken since coming to office. In our programme for government, we pledged to implement the Parliamentary and Health Service Ombudsman’s recommendation to make fair and transparent payments to Equitable Life policyholders. As a constituency MP and as the Financial Secretary to the Treasury, I receive plenty of correspondence on this matter, I have answered a series of parliamentary questions about it and I have had a number of oral representations from colleagues on it, all of which have stressed the need for a fair resolution. I understand the strength of feeling and, given my role in the past five years in opposition and now in government, I hope that hon. Members will recognise my commitment to policyholders.

We need a swift resolution, but, vitally, one that is transparent and fair. I am pleased to report to the House that more progress has been made to address the plight of Equitable Life policyholders during the first few months of the coalition Government than was achieved over the past decade. We have published Sir John Chadwick’s independent report setting out his approach to calculating payments. I commissioned the first bottom-up estimates of losses suffered by policyholders, calculated at each individual stage of Sir John’s methodology, and published those estimates in July.

[Dr Julian Lewis (New Forest East) (Con)]

As one of the many people who signed the Equitable Life representatives’ pledge before the election, I am very concerned that there should be a fair settlement. Will the Minister comment on the statement by the parliamentary ombudsman in her letter to all MPs of 26 July that

“the Chadwick proposals seem to me to be an unsafe and unsound basis on which to proceed”?

[Mr Hoban]

My hon. Friend was one of a number of colleagues on both sides of the House, including me, who signed the pledge. I am determined to make sure that we honour the pledge and that justice is delivered to Equitable Life policyholders. I met the ombudsman yesterday to discuss her letter and her comments on Sir John’s report. That is one of a number of representations that I have received about the report. I shall talk about the others in more detail later, but let me say that the starting point of Sir John’s work is a basis for calculating external relative loss. That is the first such basis that has been proposed to us and we need to look at how it could work as a basis for calculating the losses. I am determined to make sure that in deciding the loss figure we should take into account all the representations that have been received, including those of the parliamentary ombudsman.

--- Later in debate ---

[Dr Lewis]

My hon. Friend is extremely generous in giving way a second time. Does he accept that whatever calculations are done, any outcome that results in only a small fraction of the relative loss being made good to the policyholders would be deemed unacceptable by the policyholders, and dishonourable behaviour by those of us who signed that pledge in good faith?

[Mr Hoban]

I draw my hon. Friend’s attention to the ombudsman’s report. She set out a process for assessing relative loss, but she was very clear in her report that we need to take into account the impact on the public purse of any compensation scheme.

--- Later in debate ---

[Stephen Timms]

I wish the hon. Lady success. I believe that she is one of those who signed the pledge, and I am sure that she will be training her fire on Ministers. As I have said—and as EMAG has made crystal clear—we are currently heading for the breaking of that pledge.

[Dr Julian Lewis]

Does the shadow Minister feel that people who made dodgy investments in Icelandic banks are more worthy of compensation than people who trusted the Government and the regulatory authorities over Equitable Life?

[Stephen Timms]

I am not sure which investors the hon. Gentleman is thinking of, but I think it essential for us now to move quickly to a scheme. We need a timetable, and we need the details of a scheme, so that this long-standing matter can be resolved.

PAYE Contributions

Julian Lewis Excerpts

Wednesday 8th September 2010 Commons Chamber

[Mr Gauke]

The hon. Gentleman makes a good point. To be fair, the NPS system brings the information together, but unfortunately, that has highlighted more difficult cases. In fact, as we move forward with the NPS system and—potentially—further reforms, HMRC should have more accurate information and so be able accurately to assess the level of tax due.

[Dr Julian Lewis (New Forest East) (Con)]

I am tempted to ask whether the person who designed the computer system for HMRC is the same as the person who designed the computer system for claiming MPs’ expenses, but I shall resist, and instead ask the Minister this: why has he alighted on the period of only three years for people to make payments? Is it not the case that people on very low incomes may need longer if they are hit with particularly large bills?

[Mr Gauke]

The period of three years is one in which we have confidence that HMRC will be able to address the matter administratively. Beyond that, certain technical matters would need to be thought through. However, we are confident that HMRC is capable of addressing the matter over three years.

Equitable Life

Julian Lewis Excerpts

Thursday 22nd July 2010 Commons Chamber

[Mr Hoban]

I am conscious that this is a very complex business. There are 1.5 million policyholders with 2 million policies and 30 million transactions. The policies are not straightforward and the data are old and difficult to access. I want to do as much as I can to make the process as quick as possible, and my hon. Friend has my commitment that I will do everything that I can to ensure that the date is speeded up.

[Dr Julian Lewis (New Forest East) (Con)]

Dozens of my constituents affected by the scandal, and a cousin who lives abroad, were favourably impressed by what was said in opposition creditably by Conservative and Liberal Democrat MPs. Will my hon. Friend accept that the experience of root canal surgery by the right hon. Member for Rotherham (Mr MacShane) will be as nothing compared with what those MPs will suffer if we fail to live up to our promises? I welcome the speed with which my hon. Friend is taking action, but the content of that action must live up to the speed.

Oral Answers to Questions

Julian Lewis Excerpts

Tuesday 8th June 2010 Commons Chamber

[Mr Gauke]

The Government will make a decision on all matters considering the value for money and considering the very difficult financial circumstances that we find ourselves in, bequeathed by the previous Government.

[Dr Julian Lewis (New Forest East) (Con)]

7. What steps his Department is taking in respect of payment of compensation to Equitable Life policyholders.

[John Howell (Henley) (Con)]

9. What steps his Department is taking in respect of payment of compensation to Equitable Life policyholders.

[The Exchequer Secretary to the Treasury (Mr David Gauke)]

The coalition Government have pledged to make fair and transparent payment to Equitable Life policyholders, through an independently designed payment scheme, for their relative loss as a result of regulatory failure. The Queen’s Speech announced the Government’s intention to introduce a Bill in the first Session of Parliament to enable payments to be made to Equitable Life policyholders. On the same day, the Government also announced that an independent commission would be established to design the payment scheme. These steps are a strong sign of the Government’s commitment to deliver on their pledge.

[Dr Lewis]

More than 60 of my constituents in New Forest East, and indeed even one of my own relatives, will be delighted to know that the Government intend to implement the recommendations of the ombudsman. Can he tell me when this is going to happen—and can he guarantee that the Independent Parliamentary Standards Authority will not be put in charge of making the payments?

[Mr Gauke]

I thank my hon. Friend for his question. The intention is that Sir John Chadwick’s report will reach its conclusion in mid-July; at the same time the independent commission will be established. We are making progress in this area—in contrast, I am afraid, to the dither and delay of our predecessors.