amendment of the law Debate

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Department: HM Treasury
Monday 24th March 2014

(10 years, 1 month ago)

Commons Chamber
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Mike Kane Portrait Mike Kane (Wythenshawe and Sale East) (Lab)
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It is a pleasure to follow the apolitical speech of the hon. Member for Spelthorne (Kwasi Kwarteng).

The Chancellor got it completely wrong. Ebbsfleet is not the first new garden city in 100 years: he is welcome to visit Wythenshawe, which was built in the 1930s and ’40s, any time. He should cross his border and see it in all its glory. I also say to the hon. Member for Dartford (Gareth Johnson) that there are possible twinning opportunities for us; he knows where my office is.

I give a cautious welcome to the reform in the Budget of air passenger duty. The current rules are crazy and unjust, as the Chancellor rightly said. He said that there would be support for new routes from regional airports, but we need more detail. His statement did not go far enough. The Government could go further and grant exemptions for new long-haul services from regional airports. That would make a huge difference at Manchester airport, in my constituency, attracting flights from cities such as Beijing. Eventually, that would link up with High Speed 2 and with the £800 million Chinese investment in the new airport city we are building in my constituency. It is an important measure, and I will challenge the Chancellor further on it in the weeks and months to come.

We are facing a cost of living crisis, and Labour Members will keep pointing that out. No one could have fought the by-election that I have just fought without speaking to the many people who had stories to tell in that regard. As was pointed out earlier, real wages are down by £1,600 a year compared with 2010, and the OBR has confirmed that all our constituents will be worse off in 2015 than they were in 2010. To compound the problem, people’s energy bills have risen by almost £300, on average, since the election. It is no wonder that many of my constituents are increasingly reliant on food banks such as that run by the Dandelion Community, which I visited on Friday.

I want to focus on three key things that would benefit my constituents, the first of which is freezing energy bills. I am reminded of the story of a former Member of this place, Richard Cobden, a Liberal campaigner from Manchester who was part of the Anti-Corn Law League. He stood up against the Peel Government of the time and brought working people and intellectuals together because the landed aristocracy who were running this place controlled the price of wheat bushels by not allowing external competition and free trade. He eventually won that argument, because millions of poor working people across the country were going hungry. Our energy providers are doing exactly the same thing today. The big conglomerates are controlling the markets. It is not a free market; it is not fair. The prices go up, and the energy providers never lose. The hon. Member for Spelthorne goes on about business, and he is right to do so, but those businesses take no risks. Whenever their costs go up, the prices go up. We would freeze those bills—

Kwasi Kwarteng Portrait Kwasi Kwarteng
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Will the hon. Gentleman give way?

Mike Kane Portrait Mike Kane
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Of course I will. This will be the first intervention that I have taken in the House, so I ask the hon. Gentleman to be gentle.

Kwasi Kwarteng Portrait Kwasi Kwarteng
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I will bear that in mind. I was just wondering what the hon. Gentleman thinks Richard Cobden would have thought about the proposed energy price freeze.

Mike Kane Portrait Mike Kane
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Poor working people were going hungry, and he campaigned for them, so I think he would understand that poor working people are now cold, and that he would campaign for them as well.

Barry Gardiner Portrait Barry Gardiner
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Will my hon. Friend give way?

Mike Kane Portrait Mike Kane
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Do I get an extra minute? Yes? Then I will give way.

Barry Gardiner Portrait Barry Gardiner
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My hon. Friend is making an excellent speech. May I assist him by saying that Richard Cobden might have thought the price freeze less important than the restructuring of the vertical integration in the market, which it was buying time in order to do?

Mike Kane Portrait Mike Kane
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I agree with that, even if I do not quite understand all of it. It was very good. I am very proud that Richard Cobden ran his campaign from Manchester and changed the world. Once he had won, the campaign eventually brought down the Peel Government, so there is hope for us on these Benches.

My second point is that we should put young people back to work. Nearly 900,000 young people are out of work in this country, and many are in my constituency. Their parents are very worried about their children’s future. Nearly 1,000 young people under the age of 24 in my constituency are in that position. We could pay for measures to address that with a tax on the bankers bonuses. In 1997, the new deal did an immense amount for the estates in Wythenshawe. In my opinion, it did even more than the introduction of the national minimum wage. It transformed the estates and got people back into work, which makes a great difference to the cohesion in our communities.

Finally, it would make a real difference to the standard of living in my constituency if we were to extend free child care for working parents to 25 hours a week for their three and four-year-olds. That would help more young women to get back into the workplace. The lack of affordable child care is a real obstacle for working poor families, but we could achieve that change in the next Parliament while balancing the nation’s books in a fairer and more equitable way.