Debate on the Address

Debate between Mark Tami and David Davis

Wednesday 8th May 2013 Commons Chamber

[Mark Tami]

What about those people who come to see us in our surgeries who have been told they are fit to work, but who, in the real world and the very difficult economic climate in which we find ourselves, are not going to get work? Just saying they are fit for work, under whatever system, does not mean they are going to go out and get a job. Does the right hon. Gentleman accept that an acknowledgement of that is what is lacking?

[Mr Davis]

There is an element of that, and that is what I was alluding to just now. There is no doubt that the system makes some mistakes, but I have the advantage of having been an MP for a long time, and I can remember when we changed the disability rules the other way, and we had a 400% increase in people claiming disability benefits of one sort or another. It was the right direction to go in, but it went vastly too far. The problem is that we now have a situation in which people are basically taken completely off the job market. To be frank, it suited past Governments of both political persuasions to have those people out of the job market, because the figures looked better, but that does not mean we do not now have to put this right.

My argument here—it is the argument I will make throughout what I have to say in the next five or so minutes—is that the difficult decisions we face now have to be faced up to, but we must always, time and again, come back and apply a fairness test. The hon. Gentleman would probably agree with me about that, although maybe not about where that test would fall.

I particularly approve of the proposed changes to pensions. Last week I was worried that the Government effectively were proposing to ignore the benefit that arises from stay-at-home mothers, but, in fact, the reverse is true. The Queen’s Speech states that the Government will

“create a simpler state pension system that encourages saving and provides more help to those who have spent years caring for children.”

If there is one thing in the Government’s economic strategy that I disapprove of it is the presumption that the only useful mother is one that goes out to work. Raising children—particularly raising three or four children—is a difficult task in its own right and a very important social task, and I am surprised that a Conservative Government, of all Governments, do not recognise that more and do more about it. This at least appears to be a move in the right direction, and if it lives up to the advertising in the Queen’s Speech, I will support it enthusiastically.

Indeed, I would go further and say that the Conservative party had a manifesto commitment to have transferable tax allowances for married couples as well, and I see no reason why we should not hold to our manifesto commitment. I understand that is budgeted for in the Treasury anyway, so why do we not do it?

The one element of the Leader of the Opposition’s speech that I sort of half-agreed with was that we have not been fast or robust enough in our approach to banking reform. There has been a lot of talk recently about populist measures—about “Thatcherite giveaways” of the nationally held shares in the banks. That is neither here nor there to me. What matters is the structure of the banks. We should be breaking up our banks. At the level at which economies of scale run out in commercial banking, we could have 30 high street banks in the UK. Some 30 or 40 years ago, that is exactly what we did have, and I have to say levels of service in banking have gone down since then, not up.

We have ignored competition law. We have ignored the virtues of competition and the impact on stability of having banks that are too big. We need measures on that. They are not in today’s Queen’s Speech because the Banking Commission is yet to report. As soon as it does report, we must have urgent action. This is not something we can put off for five years. We should do it now.

--- Later in debate ---

[Mr Davis]

I am afraid that that is not true. I do not want to end up giving a lecture on this, but let me say that the previous Government made a simple mistake in allowing access before the transitional periods were up for those from the entire A8 group of accession countries—Poland, Hungary, the Czech Republic and so on. Therefore a large number of people who could not get into Germany and France at that time came to this country, because they were allowed legitimately to do so; ours was the only big country to do that. As a result, we end up with a Polish community—with Polish shops, Polish newspapers and so on—and so where do Poles go when everything is opened up? They come to where there is an indigenous Polish community, and that is perfectly reasonable. All of this is rational behaviour on the part of people who want to work, make a living and get on in life, and I cannot disapprove of them doing that. So one mistake was made then and that is what it led to. We are not going to be in the same position in respect of Romania and Bulgaria, so it is difficult to predict the numbers. I was the shadow Home Secretary who challenged the right hon. Member for Sheffield, Brightside and Hillsborough (Mr Blunkett) when, as Home Secretary, he said that 13,000 eastern Europeans would be the total number coming to this country. He eventually got so nervous about this that he started saying, “I am the Home Secretary, but the Home Office is saying this.” He realised that his numbers were wrong and the real number turned out to be millions.

[Mark Tami]

By their very nature, these people, be they from Poland or wherever, tend to be young and healthy, and the health service is probably one of the last things they think about—it is the job they are looking for.