Public Spending

Phil Woolas Excerpts

Thursday 17th June 2010 Commons Chamber

[Danny Alexander]

I understand the hon. Gentleman’s concerns on behalf of his constituents, but the anger should be directed at Labour Front Benchers, who irresponsibly agreed to spend money that, as the former Chief Secretary said in his letter, simply is not there.

[Mr Phil Woolas (Oldham East and Saddleworth) (Lab)]

I ask the right hon. Gentleman to look again at his decision on Sheffield Forgemasters. That £80 million, which is spread over some years, is in the form of a loan and has a huge multiplier effect for the nuclear industry, particularly in the north-west. Is he trying to make sure that if the expansion of the nuclear industry takes place, which I hope it does, the infrastructure for it will have to come from overseas? Will he look at this again, because he is doing what he has accused the banks of doing—not providing loans for investment?

[Danny Alexander]

I have looked very carefully at this and all the projects that we are cancelling or suspending. I believe that the decision that we have made is the right one on value-for-money and affordability grounds. I have discussed it with my right hon. Friend the Secretary of State for Business, Innovation and Skills. In the context of the pressures on budgets and the affordability and value-for-money criteria that we have applied, I am afraid I am not able to go back and reconsider. Officials from the Department for Business, Innovation and Skills will work with the company to try to ensure that it gets access to a private sector solution. As to the nuclear industry, the hon. Gentleman will know that the coalition agreement commits us to no public subsidy for nuclear power.