Budget Resolutions and Economic Situation

Sarah Newton Excerpts

Friday 23rd March 2012 Commons Chamber

[Sarah Newton (Truro and Falmouth) (Con)]

When I talk to businesses in my constituency in Cornwall—this goes for families as well; a party from Shortlanesend community primary in my constituency were just in the Gallery, so some young people from Cornwall have been here today—they tell me that, in such a part of the world where we are so far away from major markets, transport infrastructure is absolutely essential and vitally important.

I very much welcome, therefore, the Secretary of State’s introduction to the debate this morning, as it underlined the Government’s commitment to ensure that we invest in our vital transport infrastructure, which is important not only for individuals but for businesses—businesses that need to get their goods and services to market.

One area of transport, which we have not touched on today but that is very important to the nation, is shipping and ports. More than 90% of the value of goods entering this country enters on ships, as does 95% of everything that we consume in this country. Of course, it has to go through a port, or we would not be able to export. My hon. Friend the Member for West Suffolk (Matthew Hancock) quite rightly reminded us of the huge importance of international trade to our great country. Growth will come from exporting more of our goods and services, and they will be exported by and large on ships. Therefore, ensuring that we have the right port infrastructure to support the growth of trade—and foreign trade—in and out of our country is vital.

I therefore welcome in particular as part of the Budget—a small but important part in this context—the Chancellor’s report back on his commitment in the autumn statement to look at the planning issues surrounding ports development. I see nodding those colleagues who represent ports, because whether one represents a small port, a relatively small port in terms of shipping turnover, as I do in Falmouth, or one of our great container ports, one realises that how port operators develop those businesses is a real issue.

[Charlie Elphicke]

My hon. Friend will be aware that the national ports planning policy framework was recently put before the House. Does she agree that it is a positive step forward, although we should perhaps support mankind a little more vigorously and the humble shellfish a little less?

--- Later in debate ---

[Sarah Newton]

I definitely agree that the framework is a big step forward, and protecting our precious marine environment, which supports the whole fishing industry and ecosystem of parts of the UK, is important, but we need to balance that with our economic growth, stability and jobs, which is really important too.

The Budget reports on the review that was set in train in the autumn statement in order to analyse the implementation in the UK of the EU habitats directive, to which I think my hon. Friend was referring, and which can create so many problems for our port operators. In reading through that review, I think there is a great deal to be welcomed. It has engaged with a range of stakeholders, all of whom acknowledged that the implementation of the habitats directive caused considerable problems for our ports operators, and many positive measures have been put in place in terms of collecting data.

Many disputes about planning applications arise because there are no accurate data, and a lot of work is going to be put into that area, and into ensuring that the various regulatory bodies—ultimately, the Marine Management Organisation will make the licensing decisions for our ports, but many are involved—engage earlier and more constructively with ports operators, which should make them more confident that proposals for development can go forward.

[Dr Thérèse Coffey]

My hon. Friend and I have made common cause in trying to help those matters along, as we share similar issues. I understand that she welcomes much that was in the review, but does she share my concern that it missed the opportunity to look at certain regulations and determine whether we should have them at all? Indeed, the review’s terms of reference included looking through that and making appropriate representations to the Commission.

[Sarah Newton]

My hon. Friend makes a good point. I think that the review is a work in progress. The review team did not have much time, but I think they managed to cover a lot of ground. Certainly, if we look at the terms of reference the Chancellor gave them, we will see that there are things that subsequently have been passed over to the Law Commission for its consideration. I was somewhat perturbed to read in a footnote in the review document that the Government would consider the Law Commission’s recommendations “in due course”. I would like reassurance from the Chancellor that he will ensure, through the all-departmental working group he set up, that regulations are not standing in the way of economic growth and development of our ports, that this “in due course” is acted on speedily, because in due course without reform we will not have the ports to enable us to import our energy or the food and other vital materials we need. I would like to see that “in due course” in the footnote turned into something a little more urgent.

I think that eventually representations will have to be made at an EU level. Interestingly, the review showed that other European countries with ports have had experiences similar to ours when interpreting and implementing the habitats review. I am sure that all Members with ports in their constituencies or an interest in ensuring that Britain returns to being the great trading nation it always has been will want to watch these things and help the Government constructively to tackle these issues.

With regard to other vital infrastructure, a number of colleagues, including my hon. Friends the Members for Bedford (Richard Fuller) and for Camborne and Redruth (George Eustice), mentioned that for those of us living in the more remote parts of the UK a lot of transport is by road, so fuel prices and levies on fuel are of great significance to us. All the goods and services and the great things that are manufactured in Cornwall need to be able to get to market in the rest of the country. Although I was disappointed that fuel levies will go up in August by 3p, I understand why, given the huge mess that the Government are trying to sort out and the economic legacy they were left. That is something we have to bear.

One thing I would like the Minister to consider is a recent precedent. We have heard from colleagues today about the extent to which we believe fuel companies are profiteering from customers in our parts of the world, where the price at the pump is 3p, 4p, or 5p more than it is in other parts of the country. The Office of Fair Trading has the task of looking at whether there is a proper competitive market working in the region. The Department for Energy and Climate Change recently referred the fuel oil market to the OFT, because the winter before last many of us experienced the most appalling hikes in the price of fuel oil, which many people in remote, rural areas use to heat their homes. After the referral to the OFT, some very good work it did and the implementation of measures, we saw no repeat of such hikes last winter. With that recent precedent in mind, I think that the OFT could play a useful role in ensuring that our regional fuel markets are working efficiently. Based on that, hopefully we could see real pressure to reduce the profiteering that I believe is going on at the pump so that people in constituencies further away from the south-east of England will not feel the full impact of the 3p rise.

I welcome the measures in the Budget to support infrastructure. The investment in rail will affect not only HS2 but places such as Cornwall, and the connectedness of the remoter regions of the UK is vital to our economic future. I very much support and commend the Government’s single-minded focus on making sure that we have an infrastructure that is fit to get Britain working and Britain back to work.

[Several hon. Members]

rose—