Thursday Volume 512 24 June 2010 No. 21

HOUSE OF COMMONS OFFICIAL REPORT

PARLIAMENTARY DEBATES (HANSARD)

Thursday 24 June 2010

£5·00 © Parliamentary Copyright House of Commons 2010 This publication may be reproduced under the terms of the Parliamentary Click-Use Licence, available online through the Office of Public Sector Information website at www.opsi.gov.uk/click-use/ Enquiries to the Office of Public Sector Information, Kew, Richmond, Surrey TW9 4DU; e-mail: [email protected] 409 24 JUNE 2010 410 House of Commons Oral Answers to Questions

Thursday 24 June 2010 ENVIRONMENT, FOOD AND RURAL AFFAIRS

The House met at half-past Ten o’clock The Secretary of State was asked— Broadband (Rural Areas)

PRAYERS 1. Richard Drax (South Dorset) (Con): What discussions she has had with the Secretary of State for Business, Innovation and Skills on the roll-out of [MR SPEAKER in the Chair] broadband to rural areas. [3937]

9. Nadhim Zahawi (Stratford-on-Avon) (Con): What BUSINESS BEFORE QUESTIONS discussions she has had with the Secretary of State for Business, Innovation and Skills on the roll-out of broadband to rural areas. [3945] CANTERBURY CITY COUNCIL BILL Ordered, 11. Matthew Hancock (West Suffolk) (Con): What That so much of the Lords Message [10 June] as relates to the discussions she has had with the Secretary of State for Canterbury City Council Bill be now considered.—(The First Business, Innovation and Skills on the roll-out of Deputy Chairman of Ways and Means.) broadband to rural areas. [3947] Motion made, and Question proposed, The Secretary of State for Environment, Food and That the promoters of the Canterbury City Council Bill, which Rural Affairs (Mrs Caroline Spelman): As I am sure the was originally introduced in this House in Session 2007-08 on House is aware, a former Minister for Agriculture, 22 January 2008, may have leave to proceed with the Bill in the current Session according to the provisions of Standing Order 188B Fisheries and Food and Secretary of State for Wales, (Revival of bills).—(The First Deputy Chairman of Ways and Peter Walker, has passed away. I felt it right to record Means.) our gratitude for his services to agriculture, and our condolences to his family. Hon. Members: Object. I wrote to the Secretary of State for Culture, Media and Sport, and have followed that up with conversations To be considered on Monday 5 July at Seven o’clock. with my right hon. Friends the Secretaries of State for Business Innovation and Skills and for Culture, Media CITY OF WESTMINSTER BILL [LORDS] and Sport about this important issue. I have spoken to Ordered, the latter—the Government lead on broadband—to express my support for the initiatives announced on That so much of the Lords Message [10 June] as relates to the 8 June to take broadband to rural communities. City of Westminster Bill [Lords] be now considered.—(The First Deputy Chairman of Ways and Means.) Richard Drax: I welcome the Secretary of State to her Motion made, and Question proposed, post, and thank her very much for coming down to That this House concurs with the Lords in their Resolution.—(The South Dorset during the election campaign. I also First Deputy Chairman of Ways and Means.) welcome the Government’s plans to roll out broadband. Can she please confirm that there will be a rapid broadband Hon. Members: Object. legacy in rural South Dorset after the Olympics? To be considered on Monday 5 July at Seven o’clock . Mrs Spelman: I thank my hon. Friend for his kind words. I have seen for myself that his constituency NOTTINGHAM CITY COUNCIL BILL presents challenges in terms of broadband provision, especially given the high ground before the acute descent Ordered, to the coast. He is, however, fortunate to have the That so much of the Lords Message [10 June] as relates to the opportunity provided by an Olympic facility that will Nottingham City Council Bill be now considered.—(The First leave a lasting legacy in his constituency. Deputy Chairman of Ways and Means.) I take the view that we should not try to reinvent the Motion made, and Question proposed, wheel. Where broadband infrastructure is already in That the promoters of the Nottingham City Council Bill, place, of course we should seek to use it. However, I will which was originally introduced in this House in Session 2007-08 use my good offices to speak to those at the DCMS and on 22 January 2008, may have leave to proceed with the Bill in the to ensure that the legacy is a good one. current Session according to the provisions of Standing Order 188B (Revival of bills).—(The First Deputy of Chairman of Ways and Means.) Nadhim Zahawi: I, too, welcome the Secretary of State to her post. Yesterday’s Budget confirmation that the Government will fund three pilot schemes to bring Hon. Members: Object. super-fast broadband to hard-to-reach areas is crucial To be considered on Monday 5 July at Seven o’clock. to my constituency. It is especially crucial for the 50 to 411 Oral Answers24 JUNE 2010 Oral Answers 412

80 age group—which, for various reasons, is one of the from the European Union. Only yesterday, my right fastest-growing groups of internet users—and, obviously, hon. Friend the Secretary of State and I met the Agriculture for enterprises in the area. Can the Secretary of State Commissioner and impressed upon him not only the tell us a little more about her discussions on those three measures I have announced, but the need for the whole pilot schemes? EU to adopt a much more simplified approach to regulation and to concentrate on outcomes. I am pleased Mrs Spelman: I thank my hon. Friend for drawing to tell my hon. Friend that that message went down very attention to the importance of super-fast broadband well with the Commissioner, who entirely endorsed that provision to all generations in our society, and to the approach. social inclusivity it provides. The coalition Government have made a clear commitment to roll out super-fast Tony Lloyd (Manchester Central) (Lab): Will the broadband to ensure that those who live in rural Minister guarantee that this rush into deregulation will communities are not disadvantaged. As my hon. Friend not be at the expense of the health and safety of people pointed out, that includes businesses, but it also includes working in agriculture, farmers themselves, their employees children, who often need broadband to complete their and the wider public? Will he guarantee a place for the homework. I assure him that this is a priority for the trade unions on his taskforce? Department, and that the choice of location for the pilots will be decided shortly. Mr Paice: I can assure the hon. Gentleman that we have absolutely no intention of reducing standards. We Matthew Hancock: I welcome the Secretary of State in this country—particularly under the last Government— and her team to the Front Bench. I also welcome what seem to have become obsessed with the view that to she said about rural broadband. In counties such as maintain standards, we must have high levels of intervention Suffolk, it is an important part of our modern infrastructure. in how people comply with regulations. We have become The people of Suffolk are enterprising and innovative, obsessed with process. I can assure the House that we and I know that they too will warmly welcome what the have absolutely no intention of allowing our standards Secretary of State has said. However, will she tell us to fall, be they in health and safety, food safety, pollution more about the importance of community initiatives for or anything else. We are focusing on reducing the burden improving broadband, and what she will do to support on businesses regarding how they comply with such them? regulations by concentrating on whether they do.

Mrs Spelman: Obviously, broadband is very important Tim Farron (Westmorland and Lonsdale) (LD): I to my hon. Friend’s constituency, which contains many welcome the Minister to his position. He will not be farmers. It is simply assumed that those farmers will surprised to learn of my recent conversation with a have access to broadband in order to complete form-filling farmer in South Westmorland who bought a bull from online. market to his farm and was then unable to move any As I said earlier, this is a community opportunity. sheep from a field two miles away because of the six-day There are some excellent examples of the big society at movement rule. That made absolute sense during the work in Northumberland and Rutland, where communities foot and mouth crisis of 2001, but is now an unnecessary have come together to ensure that good broadband burden on the farming industry. When will the Minister access is available to all. scrap it? Farming Regulation Mr Paice: I have a lot of sympathy with the hon. Gentleman, whose constituency I have visited; I have 2. Mark Menzies (Fylde) (Con): What plans her probably had the same farmer saying the same thing to Department has to reduce the level of regulation on me there, as well as farmers in many other places over farmers; and if she will make a statement. [3938] the many years when I sat on the Opposition side of the House. I tend to share his doubts about the six-day rule, The Minister of State, Department for Environment, but the advice I have received so far is that there is a Food and Rural Affairs (Mr James Paice): As I announced very sound reason for it. It will certainly be one of the at the cereals event on 9 June, bureaucratic burdens on issues considered by the taskforce and I hope that, the food and farming industry will be scrutinized by a along with other such provisions, it will recommend new industry-led taskforce on food and farming regulation. getting rid of the rule. The taskforce will identify ways to reduce regulatory burdens by trusting farmers to deliver the necessary Hilary Benn (Leeds Central) (Lab): May I associate outcomes, rather than telling them how to do so. It will this side of the House with the remarks of the Secretary also advise on how best to achieve a risk-based system of State about the late Peter Walker? of inspection in future. Regulation is very important in animal health, including in combating animal disease. Will the Minister therefore Mark Menzies: I am sure that many farmers in Fylde tell the House when a decision was taken that there will take comfort from the work that is being done. To would be a targeted cull of badgers in hotspot areas? what extent is the Minister’s Department liaising with EU member states regarding further reducing the regulatory Mr Paice: As the right hon. Gentleman well knows, burden? the commitment appears in the coalition agreement, so, bearing in mind that we have a new Government, I Mr Paice: I am grateful to my hon. Friend, whom I suppose the answer to his question is that the decision welcome to his first DEFRA questions. He is absolutely was taken when that coalition agreement was drawn up. right: a huge amount of DEFRA regulations emanate Until that point, there were measures being proposed 413 Oral Answers24 JUNE 2010 Oral Answers 414 by the Conservative party and by the Liberal Democrats. Richard Benyon: I thank the hon. Gentleman for his There is a great deal of science concerning bovine TB. kind words. He has a particularly interesting project in We are looking at all of it and drawing up our proposals, his constituency: the work on the River Rother. I am which we will publish and put out for consultation. As very interested in it because it involves local levy funding, the right hon. Gentleman well knows, there is a valid which is a very good way forward in times of difficult case for addressing the reservoir in wildlife, including financial circumstances. We have found some savings in badgers, in this country, as has been done by every the budget for this year, and that is simply because the other country in the world. Environment Agency was ahead of the game in its targets for this year. I cannot say to the hon. Gentleman Hilary Benn: If a decision has been taken that there that there will be no cuts in the flood defence budget, will be a cull, which is what the Minister said at the but if he looks at the coalition agreement he will see Devon county show, why did he say in a written answer that flood protection is an absolute priority for this on 22 June that all the evidence would be considered Government. “before taking a decision”? How will it help to deal with the disease when the two Ministers responsible appear Miss Anne McIntosh (Thirsk and Malton) (Con): to be saying completely different things? May I congratulate the entire ministerial team and assure Ministers of a very warm welcome when they appear before the departmental Select Committee? May Mr Paice: The former Secretary of State is desperately I press my hon. Friend on flood defences for Chesterfield trying to create a division where none exists, because the and other more urban areas? Will he take this opportunity situation is clear—in black and white, if I may use the to review the way the points are skewed in favour of phrase—in the coalition agreement. The considerations urban areas to the detriment of rural areas, and make mentioned in the parliamentary answer to which he sure we restore more funding to regular maintenance refers concern the details of how, where and who, along rather than, almost exclusively, capital expenditure projects? with all the other issues that have to be addressed in working out how to do a cull of badgers and how to Richard Benyon: I thank my hon. Friend for her integrate it with the badger vaccine deployment project. comments, and it will be very interesting to take up these matters with her Select Committee; I know they Neil Parish (Tiverton and Honiton) (Con): May I will be of great interest to it. This is all about getting the follow up an earlier question on the movement of balance right. There are circumstances in which rural animals? During the winter, a sheep farmer in Honiton communities can put together a very good financial had to fill in a form every time she moved her sheep in case, particularly with a form of local levy funding, to and out of a field for lambing because she did not own which I have already referred. We also have to recognise, that field—it was not part of her holding. We have got however, that spending must go to where it is most to find ways of simplifying movement orders. effective and can secure as many homes as possible from the risk of flooding. I cannot talk in specifics on such a Mr Paice: I welcome my hon. Friend to the House general issue, but I can assure my hon. Friend that this and to DEFRA questions. I entirely agree with him: is an absolute priority that we will take forward. that is one of countless regulations that appear on the Campaign for the Farmed Environment face of it to be nonsensical, and which the taskforce will consider. 6. Mr Marcus Jones (Nuneaton) (Con): What recent discussions she has had on the objectives of the Flood Defence (Chesterfield) Campaign for the Farmed Environment; and if she will make a statement. [3942] 3. Toby Perkins (Chesterfield) (Lab): What progress has been made on flood defence projects in the The Minister of State, Department for Environment, Chesterfield area since 2007; and if she will make a Food and Rural Affairs (Mr James Paice): The Government statement. [3939] are strongly committed to the Campaign for the Farmed Environment, which we consider to be an excellent example of the farming industry taking responsibility The Parliamentary Under-Secretary of State for for its environmental impacts. The Secretary of State Environment, Food and Rural Affairs (Richard Benyon): and I met a number of senior representatives of the The Environment Agency is currently taking forward a campaign’s partner organisations at the recent cereals project that will provide protection from the River event and discussed aspects of the campaign with them, Rother to more than 150 homes and businesses in and we look forward to receiving the progress report Chesterfield. Further schemes to provide protection in later this month. Chesterfield are being assessed. Mr Jones: I thank the Minister for his response. He Toby Perkins: I welcome the Secretary of State and may be interested to know that I shall be attending an her Front-Bench team to their positions. Flood defence event to promote the Campaign for the Farmed work was one of the many areas on which the Conservative Environment in my constituency this very evening. Can party when in opposition criticised the Labour Government he say what the level of uptake has been for the campaign for not spending more, rather than asking for cuts. Can across the country? Ministers please confirm that there will be no cuts to flood defence work, which is so important, particularly Mr Paice: The latest statistics we have are from a given the likely increase in flood risk due to climate survey done in February. As I have said, there will be a change? further report shortly, but the latest statistics show that 415 Oral Answers24 JUNE 2010 Oral Answers 416

25% of farmers had already taken measures under the Guy Opperman (Hexham) (Con): I welcome the campaign and that another 50% plan to do so in the ministerial team to the Front Bench. It is good to see near future. someone with some farming experience finally putting forward the case on behalf of DEFRA. Will the Minister Pulmonary Disease confirm that in these difficult times, when decisions have to be made regarding cuts, consideration will be 8. John Mann (Bassetlaw) (Lab): What recent given to the Agricultural Wages Board, as its task could discussions she has had with the Secretary of State for be dealt with through the national minimum wage Health on the Health Protection Agency’s investigation procedure? of the potential for mushroom composting to cause or exacerbate chronic obstructive pulmonary disease. Richard Benyon: I can confirm that the future of the [3944] Agricultural Wages Board is being considered as part of the whole review of arm’s length bodies and non- The Minister of State, Department for Environment, departmental public bodies, and that there will be an Food and Rural Affairs (Mr James Paice): The local announcement soon. primary care trust has been investigating the concerns that the hon. Gentleman has raised previously about Common Agricultural Policy possible health impacts from the mushroom composting plant in his constituency. I understand that its report is 13. Karen Bradley (Staffordshire Moorlands) (Con): due in the next few weeks. What recent discussions she has had with the farming industry and other interested parties on reform of the John Mann: If the report says there is a link of any common agricultural policy. [3949] kind, will the Minister act immediately to ensure that the health and well-being of my constituents and others The Secretary of State for Environment, Food and is immediately protected? Rural Affairs (Mrs Caroline Spelman): I have attended the Agriculture Council twice and have discussed the Mr Paice: I cannot forecast what might come out in CAP with Agriculture Ministers from other member the report, so I am not going to make any commitments states. Last night, I hosted a dinner attended by the as to what the Government might do afterwards, but I Commissioner for Agriculture and Rural Development, can tell the hon. Gentleman that, as I am sure he is Commissioner Ciolos, my colleagues here and from the aware, the preliminary findings of the PCT investigation devolved Administrations, the Secretary of State for show no links between the mushroom composting plant Scotland and other key UK stakeholders. We discussed and incidences of chronic obstructive pulmonary disease a number of issues, including CAP reform, and I have in the locality. more European visits planned in the coming months.

Workplace Activity (Natural Environment) Karen Bradley: I thank the Secretary of State for that answer. She will be well aware of the problems caused 12. Luciana Berger (Liverpool, Wavertree) (Lab/Co-op): by the Rural Payments Agency’s remapping exercise, If she will discuss with trade unions measures to reduce particularly in non-flat areas such as Staffordshire the adverse effect on the natural environment of Moorlands. Can she reassure farmers who are still workplace activity. [3948] waiting to agree their revised maps that the single farm payment will not be delayed and that they will not The Parliamentary Under-Secretary of State for suffer undue hardship? Environment, Food and Rural Affairs (Richard Benyon): I or my colleagues would be happy to hold such discussions. Mrs Spelman: I am sure that my hon. Friend’s farmer constituents will be very grateful to her for bringing up Luciana Berger: With public sector employers having this issue. If she gives us the details of any significant to make the longest and deepest cuts since the second problems with the mapping in her area—I understand world war, will the Minister recognise the role of trade that they might relate to the slopes and gradients of the union environment representatives in helping to achieve land—I am sure that my hon. Friend the Minister of energy, water and waste savings? Can he assure me that State will look into it closely, as he has offered to chair managers in his Department regularly discuss and monitor the board of the RPA. environmental cost savings at joint union-management meetings? Dr Eilidh Whiteford (Banff and Buchan) (SNP): May I also welcome the right hon. Lady and her team to Richard Benyon: I assure the hon. Lady that such their posts? I believe that her talks yesterday with the matters are taken up. The general secretary of the Scottish Government’s Cabinet Secretary for Rural Affairs Trades Union Congress wrote to my right hon. Friend and the Environment were very constructive, but will the Secretary of State recently about the trade union she clarify for the benefit of the House how she intends sustainable development advisory committee, wanting to work with the devolved Administrations? In particular, reassurance that the Government will continue with how does she see the future of pillar one support in the that organisation, which links employees with government common agricultural policy reform process? regarding ideas for sustainable working methods. My right hon. Friend wrote back to Brendan Barber this Mrs Spelman: I thank the hon. Lady for that question, week to say that my noble Friend Lord Henley will and I can tell her that discussions with her honourable chair that committee in future. We certainly will be colleague from Scotland were indeed very constructive. taking forward these issues forward in government. I made it clear to him that I would always consult before 417 Oral Answers24 JUNE 2010 Oral Answers 418 taking a position ahead of any Council meeting. I order to help maintain the capacity to train lay vaccinators. added that we will have very close and good contact Badger sett surveys will also be completed in the Gloucester with all the devolved Administrations, and I said specifically area, near Cheltenham. That change reflects the need to that I am confident that pillar one and direct payments consider all our public expenditure carefully. will continue. The previous Government appointed Rosemary Radcliffe to examine options for responsibility and cost-sharing George Freeman (Mid Norfolk) (Con): May I, on for animal disease control. Unlike that Government, behalf of the people of Mid Norfolk, send a warm though, we will await the outcome of that report, as it welcome to the members of the Government Front may well include options for the agency’s future. I have Bench? It is nice to see a DEFRA team with such a rich had a number of discussions regarding that review. experience of the countryside, after 13 years of feeling rather neglected. On CAP reform, will my right hon. Friend reassure Harriett Baldwin: I thank the Minister for that answer, the House and the people of Mid Norfolk that, as far as and may I also add my welcome to some fellow meat-eaters possible, we will seek a revised structure that rewards in the Front Bench team for this particular portfolio? I our farmers for growing food competitively? Such a want to emphasise how important animal welfare is for structure should reward them for what they do in the farmers in West Worcestershire. A vet came to my countryside, for which they get no support at the moment. constituency surgery recently and highlighted the fact that, while the AHA seemed to have spent a lot of time on management, computer systems and office work, it Mrs Spelman: I thank my hon. Friend for those warm was not placing enough emphasis on its veterinary words. In fact, I should like to take this opportunity to function. Does the Minister have any plans to tackle say to all Government Members that the Front Bench is that? grateful for their admirable level of support. I can assure my hon. Friend that in the CAP reform negotiations, we will be seeking the best deal for farmers, consumers, Mr Paice: I am grateful to my hon. Friend, and I taxpayers and the environment. There is no doubt that welcome her to this question session. She is absolutely sustainable food production is a public good, and there right and, as part of our overall review of all arm’s is broad support across European countries for recognising length bodies, we are looking for the sorts of efficiencies the contribution that farmers make. to which she has referred. However, I can tell her that the AHA has already instituted a road map for change Jim Fitzpatrick (Poplar and Limehouse) (Lab): May that should deliver a significant tranche of savings, and I add my welcome to the Secretary of State and her a much more efficient business as well. ministerial team, and congratulate them on their new positions? Indeed, I extend that welcome to all new Back Benchers on both sides of the House. Rural Payments Agency A few moments ago, the Secretary of State mentioned her discussions with other interested parties, but do 16. Andrew George (St Ives) (LD): What plans she they include the Treasury? Reductions in the overall has for the future of the Rural Payments Agency. CAP budget might be attractive to the Treasury, but [3952] does she agree that that would be to the detriment of British agriculture? Will she assure the House that she will defend the interests of British agriculture, in both The Minister of State, Department for Environment, Brussels and Downing street? Food and Rural Affairs (Mr James Paice): An independent review of the Rural Payments Agency, commissioned Mrs Spelman: Of course I can give the hon. Gentleman by DEFRA last autumn, has recently concluded. We that assurance. I just said that I was seeking to get a will publish the recommendations of the review and our better deal for farmers, consumers, taxpayers and the response to it shortly. environment, and he can be assured of that. DEFRA is an economic Department with a very clear role in the Andrew George: I am grateful to the Minister for that economic recovery that this country needs. It is absolutely reply, and I wish him well in his work. As he knows well, at one with the objectives set out by the Treasury in that each claim to the RPA costs £1,700, and the RPA has regard. been characterised by mistakes and inefficiency throughout Animal Health Agency its years of operation. What reassurance can he give farmers in my constituency and throughout the country that those problems will improve? 15. Harriett Baldwin (West Worcestershire) (Con): What recent discussions she has had with the farming industry and other interested parties on the Animal Mr Paice: I am grateful to the hon. Gentleman. I Health Agency; and if she will make a statement. think he knows that the impossible we can do at once, [3951] but miracles take a little longer, and putting the RPA right probably comes within the last part of that saying. The Minister of State, Department for Environment, I assure him that I am extremely determined to get a Food and Rural Affairs (Mr James Paice): As has been grip on the problems at the RPA; I am conscious, as I mentioned already, the most urgent issue in animal have made clear over recent years, of the problems and health and welfare is bovine TB. I have reviewed the the service to many farmers, and we have to get it right. badger vaccine deployment project and have decided to When I publish the review I will also put forward the proceed with one area near Stroud for the time being, in measures that we propose to take to address them. 419 Oral Answers24 JUNE 2010 Oral Answers 420

Flood Defences The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Richard Benyon): Since May, I have had preliminary discussions with 17. Grahame M. Morris (Easington) (Lab): What representatives of the fishing industry, and within the estimate she has made of her Department’s expenditure next two weeks I will meet the National Federation of on flood defences in 2010-11. [3953] Fishermen’s Organisations, the Scottish Fishermen’s Federation and the New Under Ten Fishermen’s The Secretary of State for Environment, Food and Association, along with the EU Fisheries Commissioner, Rural Affairs (Mrs Caroline Spelman): DEFRA’s estimate to discuss CFP reform specifically. I have also had of its expenditure in 2010 to 2011 on flood and coastal discussions about CFP reform with other interested erosion risk management is currently £664 million. This parties, including environmental non-governmental does not include local authority expenditure, estimated organisations, and shall do so again in the future. at £87 million, which is funded by Government through the formula grant. Amber Rudd: I thank the Minister for his answer. I know that he is aware of the shameful way in which the Grahame M. Morris: In welcoming the new ministerial under-10-metre community of fishermen have been treated team to the Front Bench, may I point out that on in the past 13 years. What steps might this Government 23 March last year the right hon. Member for Arundel take to restore their way of life? and South Downs (Nick Herbert), the then shadow Secretary of State for Environment, Food and Rural Richard Benyon: My hon. Friend is to be credited for Affairs, said that it was her assiduousness on behalf of her constituency’s fishing “essential that the Government takes a strong lead and implements community. She badgered me when I was sitting on the the key recommendations from the Pitt review” Opposition Benches, and she continues to do so now. My answer will be in three parts. First, there is a on flood defences. This was at a time when Labour was longer-term strategy of reforming the CFP and getting committed to protecting flood defence expenditure, which an improved deal for vessels under 10 metres in length. is very important in the north-east—in Morpeth and In the medium term, we support the very good initiative Carlisle—in view of the recent floods. Will cuts to her on sustainable access to inshore fisheries, which was Department mean that key recommendations from the started by the previous Government. The project will Pitt review will not now be implemented? report in the next few months and we will take forward its recommendations. In the short term, we can take on Mrs Spelman: I can give the hon. Gentleman an board the good suggestions made by fishing communities absolute assurance, because the coalition agreement and hon. Members and try, when we can, to improve states our commitment to taking forward the findings the lot of those communities through methods such as of the Pitt review on the 2007 floods. We are considering swaps of quota. This is not easy, but I assure my hon. how best to put this into effect, against the difficult Friend that I shall listen to the honest pleadings of her spending background, and as he will have heard earlier fishing community and do what I can to help them. from my hon. Friend the Under-Secretary of State for Environment, Food and Rural Affairs, this year, because Barry Gardiner (Brent North) (Lab): I am grateful to the Environment Agency was ahead of the game with the Minister for attending the meeting of the Global the amount of flood defences it had provided, there is Legislators Organisation for a Balanced Environment no question of this important front-line service being commission on fisheries on world oceans day. Has he compromised. In the spending review we will of course had the opportunity to read the letter that I sent him give priority to flood defences. following the meeting in which I outlined the proposals for a marine fisheries recovery strategy that were made Damian Collins (Folkestone and Hythe) (Con): The by the 16 nations represented on that day, and when Secretary of State will be aware of the importance of might I expect a response? the investment in sea defences in my constituency at Dymchurch, the Romney Marsh coast and Dungeness. Richard Benyon: I must apologise if I have not replied May I ask that she continues to give consideration to already. I thank the hon. Gentleman for inviting me the importance of that work when reviewing the budget to the event, which brought together people from across in the future? the world, and for chairing it so well. The event gave us the opportunity to show that what we are doing on marine conservation in this country is ahead of what is Mrs Spelman: My hon. Friend will not know this, but being done in many other countries, so people can learn Dymchurch and Hythe have a special place in my heart from what we do. I assure him that I will reply to him as because as a small girl I used to enjoy my summer soon as I can and take forward the recommendations of holidays taking the light railway to such places. So I that excellent organisation. perfectly understand the importance of defending that part of the Kent coast with effective coastal defences. Huw Irranca-Davies (Ogmore) (Lab): I welcome the ministerial team to their positions. I know that they will Common Fisheries Policy do their very best in their roles and I ask them to keep the Department in good shape for us. 18. Amber Rudd (Hastings and Rye) (Con): What The CFP is on the agenda of the European Council recent discussions she has had with the fishing industry meeting on 29 June. At that and subsequent meetings, and other interested parties on reform of the common will the Minister try to change the rigid rules that bind fisheries policy. [3954] the hands of member states in international negotiations 421 Oral Answers24 JUNE 2010 Oral Answers 422 so that they abstain when they cannot reach consensus, across Government. They are: does it perform a technical thus condemning iconic species such as the bluefin tuna function; does it need to be politically impartial; and and perhaps whales? does it act independently and transparently to establish the facts? The Environment Agency will be subject to Richard Benyon: I pay tribute to the hon. Gentleman, those criteria. with whom I worked closely when we sat on opposite I shall certainly take up my hon. Friend’s concerns sides of the House, for his hard work in doing an awful about flooding. She has made it clear on her website lot for the fishing community. and in a number of interventions how anxious she is to I am bemused by the arrangements requiring members ensure that her constituents are protected from flooding. of the European Union with a long tradition in the I shall impress that upon the Environment Agency. International Whaling Commission, including ourselves, to find an absolutely solid position with EU colleagues. Mr Tom Watson (West Bromwich East) (Lab): Will The hon. Gentleman is to be credited for taking an the Secretary of State ask the Environment Agency to independent line on bluefin tuna. I will take up the act independently and establish the facts of the use of matter seriously, and my right hon. Friend the Secretary aminopyralid herbicides, which have recently been licensed of State and other colleagues are also concerned about by the chemicals regulation directorate? They have got the voting procedure. into manure and the toxic chemical has destroyed allotments in my constituency and allotments belonging to thousands Huw Irranca-Davies: On the issue raised by the hon. of our citizens. She might not be an expert on the Member for Hastings and Rye (Amber Rudd), I know subject now, but I hope that she will take some responsibility that great expectations were raised in Hastings and and look into the misery that the chemical is causing. elsewhere about the future of the under-10s fleet. I welcome the Minister’s remarks about the work that has Mrs Spelman: I thank the hon. Gentleman for his already been done, particularly with the SAIF—sustainable question, although I took my chemistry O-level so long access to inshore fisheries—project. There was, however, ago that I have a little difficulty unravelling the description an expectation of a master plan and an additional way of the pesticide. There is also a pesticides inspectorate, forward, so will he tell us what that is? but whether the Environment Agency or some other DEFRA agency is the appropriate body, I will take up Richard Benyon: I do not want to sound weak, but it his specific question. is work in progress. I concede, and am the first to admit, that what seems incredibly simple in opposition can Fishing Restrictions (Suffolk Coastal) become more complicated, as the hon. Gentleman will understand. However, I am deeply mindful that we 21. Dr Thérèse Coffey (Suffolk Coastal) (Con): If she must recognise that fishing supports not only fishermen will take steps to support fishermen in Suffolk Coastal themselves, but communities. The Government will be constituency subject to restrictions in fishing activity focused on those communities. On the back of the arising from quota allocations and regulations on SAIF project, we will bring forward answers in the fishing vessels under 10 metres in length. [3957] medium term. We are looking to try to provide more quota and fishing capacity on a daily basis, and that will The Parliamentary Under-Secretary of State for continue around the coastline. Environment, Food and Rural Affairs (Richard Benyon): As I said, I recognise the difficulties currently facing the Environment Agency inshore fleet. In the immediate term, the Marine Management Organisation is actively managing catch 19. Elizabeth Truss (South West Norfolk) (Con): limits to keep fisheries open as long as possible, and is What plans she has to review the (a) functions and (b) working to secure additional quota through swaps for accountability of the Environment Agency. [3955] stocks of importance. However, the current system is not sustainable in the long term. I plan to meet The Secretary of State for Environment, Food and representatives from across industry and reflect on the Rural Affairs (Mrs Caroline Spelman): In the Queen’s outputs of the SAIF—sustainable access to inshore Speech, the Government announced their intention to fisheries—project as a matter of priority. Common bring forward a Bill to reform public bodies. DEFRA is fisheries policy reform will also play a key role, where I carrying out a critical examination of the number and want to see greater clarity on user rights and management cost of its arm’s length bodies. The Environment Agency devolved to local communities. is being considered as part of that review. Dr Coffey: I thank the Minister for that reply. I hope Elizabeth Truss: I thank the Secretary of State for her that when he comes to my constituency to look at the answer. I am worried about the bureaucratic and remote impact of coastal erosion, he will make time to meet nature of the Environment Agency’s processes, specifically local fishermen and, indeed, enjoy some delicious fish on the flooding of the A1101 at Welney and flood and chips in Aldeburgh or Sole Bay. For too long, defences at Wiggenhall St Germans. Will she tell us how fishermen have felt remote from what goes on in this local communities can hold the Environment Agency’s House, and direct access to a Minister for a short time functions further to account and make it more responsive? would be very welcome.

Mrs Spelman: One assurance I can give about Richard Benyon: I hope that I have got it across to unnecessary bureaucracy is that every one of the arm’s many members of the fishing community that I am length bodies with which DEFRA does business will be accessible and that they can approach me to explain subject to the three tests applied to arm’s length bodies their problems, which are often very local and specific 423 Oral Answers24 JUNE 2010 Oral Answers 424 to the area of coastline where they fish. I shall certainly taskforce will want to look into. I would just add the take up my hon. Friend’s kind offer of fish and chips in caution that when one looks closely at a matter on the her constituency and have a detailed discussion with ground, it is not always as clear-cut as it appears. If he members of her fishing community about the problems has a particular case in mind, I will be happy to look they face. into it. Biodiversity British Waterways 22. Chris Skidmore (Kingswood) (Con): What plans she has to increase levels of biodiversity; and if she will 25. Tristram Hunt (Stoke-on-Trent Central) (Lab): make a statement. [3958] What plans she has for the future of British Waterways. [3961] The Secretary of State for Environment, Food and Rural Affairs (Mrs Caroline Spelman): I assure the The Parliamentary Under-Secretary of State for House that biodiversity is one of my highest priorities. I Environment, Food and Rural Affairs (Richard Benyon): shall take action domestically through a White Paper I made a statement on Monday 21 June on inland on the natural environment, which will promote green waterways policy for England and Wales. The Government spaces and wildlife corridors to restore and increase consider that civil society has a valuable role to play in biodiversity. At international level, I shall ensure that delivering public services as part of the big society. We the UK shows leadership in this international year of will be looking in detail at options for a third sector biodiversity by working to achieve a global agreement model that will be appropriate for British Waterways, on a new biodiversity framework at the meeting of the including the possible inclusion of Environment Agency convention on biological diversity in Nagoya in October. navigations. No decisions will be taken until after the spending review. Chris Skidmore: I am sure the Secretary of State agrees that a key aspect of improving our nation’s Tristram Hunt: The Minister will know that Stoke-on- biodiversity is planning. In Kingswood, our much treasured Trent is blessed with many things, and among them are green belt has been threatened by the previous Government’s the great canals of England: the Trent and Mersey and disastrous regional spatial strategy and the plan to the Caldon canal, where we recently had the Hanley build 10,000 houses on it. Does my right hon. Friend regatta. In order to become a proper third sector agree that the urgent abolition of the RSS and returning organisation, British Waterways needs an appropriate powers to build houses to local communities will help to financial settlement following the comprehensive spending protect our green belts and defend biodiversity? review and a longer contract with Government to replace Mrs Spelman: I can reassure my hon. Friend that he annual grants. Can British Waterways’property endowment is speaking to a Secretary of State whose constituency is be put in a charity-locked mechanism, so that the entirely within the green belt and who has campaigned Treasury does not sell it down the canal, and we can be tirelessly on its erosion and, in particular, the unfortunate assured that, as an example of the big— consequences of the phenomenon of garden grabbing. Those matters are the responsibility of the Department Mr Speaker: Order. I am grateful to the hon. Gentleman, for Communities and Local Government and I am well but I think that we have the gist of his question. aware that my right hon. Friend the Secretary of State for Communities and Local Government intends to Richard Benyon: I am grateful for all those questions, abolish the regional spatial strategy and to protect and and I look forward to debating this matter with the hon. maintain the green belt, as my hon. Friend would like. Gentleman and other colleagues to whom it is important. I know that he is particularly interested in the heritage Farming Regulation of our waterways. The answer to his question is yes. For the third sector model to work, British Waterways will 24. Sajid Javid (Bromsgrove) (Con): What plans her have to have access to its estate, or a large proportion of Department has to reduce the level of regulation on it, for it to gear up funding for sustainable funding in farmers; and if she will make a statement. [3960] the future. I can assure him that it will not proceed unless it is locked in in that way. Those are the negotiations The Minister of State, Department for Environment, that we are taking forward with British Waterways. Food and Rural Affairs (Mr James Paice): I refer my hon. Friend to the answer that I gave to Question 2. Topical Questions Sajid Javid: I welcome those on the Front Bench to their new roles and I thank the Secretary of State for T1. [3962] Peter Aldous (Waveney) (Con): If she will visiting Bromsgrove during the election campaign. make a statement on her departmental responsibilities. The Minister referred earlier to the review of EU regulations, but may I draw his attention to the fact that The Secretary of State for Environment, Food and they are often not enforced by our major trading partners? Rural Affairs (Mrs Caroline Spelman): I will be publishing While we enforce regulations harshly, many EU countries my Department’s priorities shortly in our structural ignore them, so will the he consider that urgently? reform plan, but I can share with the House that they are: to support British farming and food and encourage Mr Paice: I am grateful to my hon. Friend for that sustainable food production; to enhance the environment very important question. There is a huge amount of and biodiversity to improve the quality of life; and to concern that some EU countries are less vigorous in support a strong and sustainable green economy, resilient enforcing regulations, and it is one of the issues that the to climate change. 425 Oral Answers24 JUNE 2010 Oral Answers 426

Peter Aldous: Fishing and farming are important Mr Paice: I am grateful to the hon. Lady for a industries in my constituency of Waveney in north question that tests many people, as she rightly identifies. Suffolk, and the forthcoming reviews of the CAP and I make two points. First, specific planning applications the CFP provide a great opportunity to improve the must, quite properly, fall to the local planning authority prospects of those two industries. Can the Minister and and are not for DEFRA Ministers to comment on. her team assure my constituents that they will stand up Secondly, on wider animal welfare issues, the coalition for British farmers and fishermen and show the leadership has made achieving the highest standards of animal to get them the best possible deal? welfare one of its absolute commitments. However, all the evidence is that management, rather than simple Mrs Spelman: I can assure my hon. Friend that the numbers, necessarily dictates the quality of animal welfare coalition Government are engaging effectively and in any particular unit. constructively with the EU in the UK’s national interest. I hope that the early evidence of the invitation to the T6. [3967] Philip Davies (Shipley) (Con): Does the commissioner, which was accepted last night, will Secretary of State understand the frustration of people demonstrate that we are taking the concerns of British who hear the European Commission for ever promise farmers and fishermen right to the heart of European to reform the common agricultural policy, and matters. Governments of all parties promise to get it reformed, when nothing ever happens? Does she not agree that Hilary Benn (Leeds Central) (Lab): Sixteen conservation the failure to reform the CAP, which costs this country organisations have recently written to the Secretary of £10 billion a year, is yet another perfect example of State urging her to protect agri-environment schemes why we would be better off out of the European from spending cuts. Given that every pound that we Union? spend brings in money from Europe, and given that once biodiversity is lost, it is very hard to bring back, Mrs Spelman: I perfectly understand the frustration can she give the House an assurance that she will make of my hon. Friend and, in fact, farmers, who feel that the natural environment a priority in the decisions that we could and should get a better deal from the common she makes? agricultural policy. From the preliminary stages of the negotiations, however, I can share with him the fact Mrs Spelman: I can give the right hon. Gentleman that, across Europe, there is a clear consensus on lifting that absolute assurance. In answer to a question about the regulatory burden on farmers. That augurs well for biodiversity, I have just made it clear that I and the the issue being an important part of CAP reform and Department attach great priority to it, and agri-environment for my ensuring that the UK gets the best possible deal schemes are an integral part of ensuring good biodiversity. for its farmers, fishermen, consumers and taxpayers alike. T3. [3964] Robert Halfon (Harlow) (Con): It is a shame that the former Prime Minister and right hon. Member T4. [3965] Mr Jim Cunningham (Coventry South) (Lab): for Kirkcaldy and Cowdenbeath (Mr Brown) made Has the Secretary of State had the chance to talk to her only a fleeting visit to the Chamber, as I would have colleague in local government about the building of liked him to have heard my question. Does the Secretary 7,000 houses on Coventry’s green belt in Keresley and of State agree that the previous Government’s payments Kings Hill? Will she honour her pledge to stop that agency was an expensive shambles? Will she visit Matching proposal, which was put forward by the previous and other villages in my constituency and meet farmers Conservative-controlled city council? who were threatened with financial ruin when payments were delayed? Will she take steps to simplify that service? Mrs Spelman: I assure the hon. Gentleman that with the abolition of the regional spatial strategy the local Mr Speaker: Order. May I say very gently to the hon. plan is what determines where and how many houses Gentleman and to other Members that topical questions are built. That will be a matter for Labour-controlled in particular are supposed to be brief, and that a Member Coventry city council: it is within its gift to decide where has a topical question—singular? the houses that are needed for the people of Coventry should go. The Minister of State, Department for Environment, Food and Rural Affairs (Mr James Paice): I shall try to T7. [3968] Guy Opperman (Hexham) (Con): The reply with one answer. I fully understand my hon. electronic sheep tagging rules were introduced by Friend’s concern. I would be very happy to visit his the previous Government. Will the Minister review the constituency, as I have done many times, and I am very practical operation of those hated rules? Traceability conscious of the distress that the mistakes of the Rural can surely be maintained without the unnecessary cost Payments Agency caused to many farmers. and bureaucratic burden on farmers and Government alike. T2. [3963] Kerry McCarthy (Bristol East) (Lab): Earlier this year, Nocton Dairies submitted an Mr Paice: My hon. Friend puts his finger on a key application for a factory farm for 8,000 cows in regulation for which I cannot find any sensible justification. Lincolnshire, and said: Nevertheless, it is in place, but I plan to speak to the “Cows do not belong in fields.” relevant commissioner about it in Luxembourg next Now the pig farmer of the year 2009 has submitted an week. application for 26,000 pigs to be held in a factory farm in Derbyshire. Does the Minister agree that we should T5. [3966] John Mann (Bassetlaw) (Lab): Will there be resist that increasing industrialisation of our food any cuts in taxpayers’ subsidies to farmers in 2011 and production? in the consequential four years? 427 Oral Answers24 JUNE 2010 Oral Answers 428

Mrs Spelman: Obviously, the common agricultural Richard Benyon: It is not a plan to privatise British policy determines in large part the remuneration that Waterways, but a plan to mutualise it. That was a very farmers receive, and taxpayers from all member states good suggestion that was made under the previous contribute to its funding. As the hon. Gentleman will Government. It will offer the opportunity for longer-term just have heard, I have made it clear that, as part of the secure funding. This is the sort of organisation that can CAP reform negotiations that will take place shortly, exist in a voluntary sector role, as long as it has the my objective is to ensure that we get the best deal for proper resources to call on. I urge hon. Members to farmers, taxpayers and consumers alike. look carefully at the proposals that are being made. We are listening and consulting; we have not made any T8. [3969] Tom Brake (Carshalton and Wallington) decisions yet. This is a method of securing a long-term, (LD): Smallholdings in Carshalton suffer badly from viable future for waterways that we all value greatly. fly-tipping. What consideration have the Government given to the National Farmers Union’s request to Julian Sturdy (York Outer) (Con): Will the Minister extend fines for people who fly-tip and to extend the give the House an update on the health of bees in this Flycatcher database to include private land? country and on what future measures are planned to help the current situation? The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Richard Benyon): Mr Paice: The whole House has always taken a great I am very interested in the NFU’s suggestions. I have interest in bee health, and we were very critical when the been following advice on this issue from organisations previous Government initially planned to cut funding such as the Campaign to Protect Rural England. Fly-tipping for it. My hon. Friend may be aware that this week, is by and large a local issue, and it is often solved at a using a significant contribution from DEFRA, a £10 million very local level by the immediate community. It is a research programme was launched on the whole issue of burden that often falls to landowners, and to farmers, bees and other pollinators, because we recognise their to clear up. We will be working with the NFU to get a value to the economy. better strategy, but also trusting local communities and empowering them with the necessary laws and regulations Ann Coffey (Stockport) (Lab): What support can the that they need to bear down on this scourge of the rural Secretary of State’s Department give to traditional markets environment. to encourage the sale of local produce? Mark Lazarowicz (Edinburgh North and Leith) (Lab/ Mrs Spelman: I thank the hon. Lady for that question. Co-op): Does the answer that the Secretary of State As I am sure she has seen, there is now a proliferation of gave to my hon. Friend the Member for Bassetlaw (John farmers markets in most locations, because consumers Mann) a few moments ago mean that she will indeed be very much like the diversity of high-quality produce arguing aggressively within the European Union for that they offer. The decision about facilitating a farmers Europe-wide cuts in agricultural subsidies? market in a particular location rests with local government. However, I am happy to discuss with colleagues at the Mrs Spelman: I have made it clear that my objective Department for Communities and Local Government as part of the CAP reform negotiations is to get a better how we might give further encouragement so that we deal for Britain’s farmers and taxpayers. That should see more such markets. include, for example, proper recognition of the measures that farmers take to protect the environment at the Duncan Hames (Chippenham) (LD): As part of her same time as producing food in a sustainable way. The forthcoming review of arm’s length bodies, will the negotiations are at the early stages. It will be quite some Secretary of State consider the track record of the time before we know how the UK will be affected, but Environment Agency in facilitating the introduction of my objective is to get us the best deal. hydroelectric power schemes on rivers? Its indecision and delay are an obstacle to progress on the River Avon Tony Baldry (Banbury) (Con): On landfill, the coalition in my constituency. agreement says that the Government hope to promote energy from waste through anaerobic digestion. How Mrs Spelman: I thank the hon. Gentleman for his will that be done? question, but I believe that the question of hydroelectric power is one for the Department of Energy and Climate Mrs Spelman: My hon. Friend, whose constituency is Change rather than the Department for Environment, not far from mine, will perhaps have observed that our Food and Rural Affairs. However, the Environment local authorities find that the increasing cost of the Agency operates as an arm’s length body and, as I have landfill tax is a strong incentive to try to reduce the previously said, will form part of the review. amount of material that goes into recycling. There are opportunities for organic waste not to go to recycling at Meg Hillier (Hackney South and Shoreditch) (Lab/ all; it is often composted by people who live in a rural or Co-op): Canals and waterways are vital in my constituency suburban locations. As regards anaerobic digestion, it is in inner London, where there is a huge renaissance possible to consider collection from places where large thanks to the Olympics. I welcome the Minister’s tone, quantities are produced, such as hospitals, catering but what conversations has he had with the Treasury? It outlets and schools. is vital that British Waterways is not sold down the canal but is there for the long term, to protect this asset John Cryer (Leyton and Wanstead) (Lab): The plan for the British public as a mutual. to privatise British Waterways by the back door—that is what the Minister is planning—has been knocking about Richard Benyon: I am aware that Regent’s canal, in for decades. What makes him think it will work this the hon. Lady’s constituency, is a great heritage asset to time? that part of London. People who love it, and those who 429 Oral Answers24 JUNE 2010 Oral Answers 430 love the canals in my constituency and elsewhere, will Richard Benyon: We want to see much greater look on with great concern to ensure that that point is consultation with local communities, anglers and all made and that the Treasury understands—and it does—the sorts of interest groups— need to provide British Waterways with the endowment it needs to gear up for the necessary repairs and maintenance Mr Dennis Skinner (Bolsover) (Lab): Liberals? of our canals.

Martin Horwood (Cheltenham) (LD): I welcome the Richard Benyon: And Liberal Democrats, certainly. Ministers to their responsibilities. They will probably be We want that consultation on the management of our aware by now that the previous Government were being river systems, and it is important to understand that we taken to court by the WWF and the Angling Trust for are talking about not just river ways but the whole non-compliance with the European Union water framework system, including the farmers who ensure that the water directive. Will the new Government adopt a different that gets into the rivers is clean. The water framework strategy on that important environmental legislation, directive is a vital piece of legislation and a good based on involving local communities and stakeholders directive with which we want to comply, and we will rather than lawyers? work with all parties to ensure that it is a success. 431 24 JUNE 2010 Business of the House 432

Business of the House suspect the ventriloquist’s dummy, the Chief Secretary, who tells us very little when he comes to the House, but may be rather more garrulous with journalists as the 11.32 am Liberal Democrat mouthpiece for Conservative policies. Ms Rosie Winterton (Doncaster Central) (Lab): Will Perhaps the Leader of the House could put in the the Leader of the House give us the forthcoming business? Library the advice that is being given to the Cabinet about making announcements to the House before The Leader of the House of Commons (Sir George making them to journalists. Young): The business for the week commencing 28 June Why is there no oral statement today from the Secretary will include: of State for Work and Pensions on changes to the state pension age, which mean that men in their 50s will lose MONDAY 28 JUNE—Conclusion of the Budget debate. on average £8,000 of state pension? TUESDAY 29 JUNE—Opposition day (2nd allotted day). There will be a full day’s debate on local government Last week, the Leader of the House stated that he financing. This debate will arise on an Opposition motion. had set out in response to a written question how the Government would inform Parliament of the numerous WEDNESDAY 30 JUNE—General debate on the progress reviews and commissions that are taking place. It is not and prospects in energy efficiency. clear from his reply where the review took place that led THURSDAY 1JULY—General debate on global poverty. on Monday to the Prime Minister’s saying, in response The provisional business for the week commencing to an intervention from me, that the Sheffield Forgemasters 5 July will include: loan was a piece of “financial engineering”. Those MONDAY 5JULY—Motion relating to the clear line of remarks have caused huge concern among industrialists sight project, followed by the Chairman of Ways and in Sheffield and south Yorkshire. The implications of Means has named opposed private business for the Prime Minister’s words are that he is backing Japanese consideration. and Korean industrialists against UK manufacturing. I urge the Leader of the House to provide more information TUESDAY 6JULY—Second Reading of the Finance Bill. about the reviews’ terms of reference. WEDNESDAY 7JULY—Opposition day (3rd allotted May we have a general debate on today’s findings by day). There will be a debate on an Opposition motion. the Institute for Fiscal Studies? The IFS shows that, Subject to be announced. under Labour’s plans, the poorest 10% would have been THURSDAY 8JULY—General debate on defendant virtually untouched, but under the Chancellor’s Budget, anonymity. their incomes are cut by more than 2.5%. Even the Government’s appointed public sector pay commissioner Ms Winterton: I thank the Leader of the House for has said that there is no logic to the brutish cuts that the giving us the business. Chancellor proposes. Will the Leader of the House ask It is important that today, we take the opportunity to the Prime Minister himself to lead the debate on the acknowledge that the Leader of the House has been IFS findings so that he can explain to the House why he working extremely hard this week to fine-tune his leak- said yesterday that it was a fair Budget? prevention strategy. I certainly detected his guiding I thank the Leader of the House for granting the hand in the reports of the unprecedented move by the general debate on defendant anonymity. That is very Chancellor of the Exchequer to ask journalists to sign a welcome. written legal agreement that they would only take photographs of him and not ask any questions, just in Sir George Young: I am grateful to the right hon. case he let the cat out of the bag about anything in the Lady for her last comment. I congratulate the hon. Budget. That was a magnificent move, not least because Member for North East Derbyshire (Natascha Engel) it vindicated the work that the Opposition have been on her success in the election for the Chair of the putting in week after week, making helpful and constructive Backbench Business Committee. suggestions about how to get the Leader of the House’s leak prevention strategy up to scratch. Sadly for the I am afraid that the right hon. Lady is wrong about Chancellor, the media refused to co-operate and, frankly, the written ministerial statement on the NHS operating things have been going downhill ever since. framework. It was issued on time, just after half-past nine, and the document, which was the subject of the The Secretary of State for Education announced his point of order, was deposited in the Library at 9.34 am. plans for free schools to the papers and came to the All the normal procedures were followed in respect of House only because the Opposition tabled an urgent that document. question. The Secretary of State for Health announced to the media the biggest shake-up of the NHS operating It is indeed the case that more urgent questions are framework at 9.25 on Monday morning, but a written being granted. I listened to your important speech to ministerial statement did not appear until 12.40. As for the Hansard Society, Mr Speaker, when you said: the Budget, most of it, including detailed figures, was in “I have also deliberately rescued the urgent question, a device the Sunday papers—my hon. Friend the Member for which compels a Minister to come to the House to face a question Rhondda (Chris Bryant) made a point of order about on a matter which has suddenly arisen”. that this week. The previous Government also experienced that change Obviously, an investigation of what went wrong will of approach. We welcome it and are happy to come to be in order, but Labour Members are quietly confident the House to answer urgent questions when they are that the Leader of the House and Deputy Leader of the granted. House can become the Government’s Sherlock Holmes On Sheffield, the Secretary of State for Business, and Dr. Watson. They might like to have as their prime Innovation and Skills dealt with that point extensively 433 Business of the House24 JUNE 2010 Business of the House 434 in his speech in the Budget debate yesterday, and I there is a shopping centre in deep financial difficulties understand that the Deputy Prime Minister is meeting as a result of the Tory council’s failure to invest and Sheffield Forgemasters tomorrow in his constituency. support it. Can we have a debate on how this Government So far as welfare is concerned, the right hon. Lady intend to support and regenerate local town centres, will know that on Monday the Budget debate will be which is something that I know is of concern across the opened by my right hon. Friend the Secretary of State House? for Work and Pensions. He will deal robustly with the points that she has made. She will also know that, for Sir George Young: I will of course draw to the attention the first time, the Red Book contains a whole section on of my right hon. Friend the Secretary of State for the impact of tax and welfare changes on households, Communities and Local Government the failure to call from page 63 all the way to page 69. I am sure that she in a particular planning decision, but I have to say to will have read the conclusion about child poverty on the hon. Lady that one of the thrusts of the coalition page 69, which says: Government’s policies is to devolve decision making down to local communities—to local councillors who “Steps have been taken to protect low income families with children from the impact of these changes, by freezing the rate of are answerable to local people for the decisions that Child Benefit to partly fund above indexation increases to the they take on planning and others matters. Child Tax Credit. This ensures that the overall impact of all modelled Budget changes on child poverty…is statistically Mr David Davis (Haltemprice and Howden) (Con): insignificant.” May I draw my right hon. Friend’s attention to the Let me say to the right hon. Lady that of course I written statement this morning on pre-charge detention? take seriously the question of leaks, as I have said Although I understand that the instrument will be before. The House should be the first place to hear of debatable in the House, we are talking about a highly any major changes in Government policy, and we also controversial issue. In future when they have such highly take seriously the suggestion of any leaks in advance of controversial issues, can he encourage his right hon. statements. However, on her general point, the House Friends to come and speak to the House, and not follow would take the Opposition more seriously, first, if they the new Labour practice of releasing things as written exhibited just some remorse for the mess that they left statements on a one-line Whip Thursday. this country in, and secondly, if they indicated how they would fill the £50 billion gap in the public finances that Sir George Young: I am grateful to my right hon. they left us to inherit. Friend. As he knows, today’s statement is about an interim arrangement while the review of detention takes Several hon. Members rose— place, and it carries forward for six months the 28-day detention proposal. As he generously said, the order Mr Speaker: Order. A great many right hon. and hon. that my right hon. Friend the Home Secretary has just Members are seeking to catch my eye. As always, I laid will be debatable and votable on in both Houses, so would like to be able to accommodate everybody, but a I hope that there will be adequate opportunity for his single, short supplementary question and a characteristically views on this important issue to be heard. brief reply from the Front Bench are the order of the day. Natascha Engel (North East Derbyshire) (Lab): I thank the Leader of the House for his congratulations Mr Edward Timpson (Crewe and Nantwich) (Con): and I look forward to working with him closely. He has Now that we realise how much the previous Government always been a vocal supporter of a strong Backbench misled the public about transport infrastructure investment, Business Committee. As such, will he ensure that the promising money that simply did not exist, can the Chair of that Committee has full membership of the Leader of the House find time for a debate on enabling Liaison Committee? greater private sector investment in our transport infrastructure, including helping to boost projects such Sir George Young: I am grateful for the hon. Lady’s as the regeneration of Crewe railway station in my words. I had always envisaged that the Chairman of the constituency? Backbench Business Committee would indeed be a Member of the Liaison Committee and take part in its Sir George Young: I am grateful to my hon. Friend. important work, not least in its twice yearly interrogation Along with many other hon. Friends, I had occasion to of the Prime Minister. visit Crewe railway station some two years ago, in order to secure his election to the House. He will have heard Roger Williams (Brecon and Radnorshire) (LD): Would my right hon. Friend the Chancellor refer in his Budget the Leader of the House look favourably on requests statement to a generous regional investment fund to for a general debate on the Floor of the House on take forward transport and other infrastructure projects science and its role in ensuring that we have an expanding that will lead to jobs. My hon. Friend will also know and improving economy, particularly so that the that we favour much longer railway franchises, which Government can express their views on genetically modified will enable the train operating companies to take a technology and the role it can play in British agriculture? longer-term view and therefore afford major investment projects such as that in Crewe railway station. Sir George Young: I am grateful to my hon. Friend for that proposal. As he will know, in future, decisions Kate Green (Stretford and Urmston) (Lab): Yesterday as to whether or not a general debate is held will fall to the Secretary of State for Communities and Local the hon. Member for North East Derbyshire (Natascha Government informed me that he would not be calling Engel) and her colleagues on the Backbench Business in a planning decision for a mega-Tesco in my constituency. Committee, which we hope to get up and running as Although gains in jobs will be welcome in the local soon as we can. I am sure that what my hon. Friend has economy, just down the road in Stretford town centre, said did not fall on deaf ears. 435 Business of the House24 JUNE 2010 Business of the House 436

Vernon Coaker (Gedling) (Lab): Will the Leader of but I do bear in mind his request, which I know is the House arrange a debate on the answering of written widely shared, for a more general debate on what is questions with respect to a named day? Last Monday, I happening in Afghanistan. was expecting an answer from the Treasury to a named day written question about the distributional impact of Mr Phil Woolas (Oldham East and Saddleworth) a 1% rise in VAT. Given that the right hon. Gentleman (Lab): The House would not want to be left with the has just quoted the Red Book, is he not astonished that suspicion that the Deputy Prime Minister says one I am yet to receive an answer to that question? thing to one group and quite another thing to another group. Will the Leader of the House ask the right hon. Sir George Young: I am genuinely sorry if there has Gentleman if he will report to the House on his meeting, been any discourtesy to the hon. Gentleman, and I will due to take place tomorrow, with Sheffield Forgemasters? draw to the attention of my ministerial colleagues at the This is an issue not just for Sheffield—important though Treasury the need to get him an urgent reply. it is there—but for the whole of the nuclear industry, and particularly for our plans in the north-west of Dr Julian Lewis (New Forest East) (Con): May I England. welcome the late conversion of the former Labour Government to not leaking to the press before making Sir George Young: The hon. Gentleman will know announcements in this House? May I ask the Leader of that the Deputy Prime Minister answers questions to the House for an early debate on the importance of the House like any other Minister—[Interruption.] The maintaining specialist mental health facilities, which hon. Gentleman will have an opportunity to raise the would allow me to raise the question of the loss of the matter with him. Alternatively, he can table a written intensive care unit at Woodhaven hospital in the New question to the Deputy Prime Minister on the issue he Forest and the threat to the Crowlin House rehabilitation has raised. centre there? Greg Mulholland (Leeds North West) (LD): All the Sir George Young: I am grateful to my hon. Friend English Members of the House thoroughly enjoyed and I know that this is an important issue for New England’s qualification yesterday, and it was wonderful Forest Members. He might like to put in for an to see the cross of St George flying. However, it is still Adjournment debate on this important issue or raise it frustrating to hear England singing the wrong anthem—the with Ministers at the next Health questions. anthem of the United Kingdom. Following the historic decision to use “Jerusalem”at the Commonwealth games, Mr Dennis Skinner (Bolsover) (Lab): A few weeks may we have a debate in the House about properly ago, we were told that a statement on Building Schools establishing an English national anthem for when England, for the Future would be made so that everybody would as opposed to the United Kingdom, compete? know which schools would be able to go ahead. The people living in Shirebrook and Tibshelf in the Bolsover constituency are still waiting for an answer. Several Sir George Young: I am sure that England’s victory schools were built when the Labour Government were yesterday was celebrated not just in England but in in power; when are we going to have a statement? Scotland and Wales. The hon. Gentleman raises an important issue. In future, whether or not something is debated in the House will be a matter for the Backbench Sir George Young: As the hon. Gentleman will know Business Committee. In the meantime, he might like to from the Budget statement, the comprehensive spending try his luck in Westminster Hall. review is now under way and the outcome will be known on 20 October. At that point, the Department will be in a position to see how best to spend its capital Mr Dave Watts (St Helens North) (Lab): Further to programme. the question put by my right hon. Friend the Member for Doncaster Central (Ms Winterton), will the Leader Mr John Baron (Basildon and Billericay) (Con): My of the House arrange for a debate on the impact of VAT right hon. Friend will know that the news flow from increases on low-paid families, bearing in mind that the Afghanistan has not been very good recently. In addition Chancellor’s and the Prime Minister’s claims that the to the further tragic loss of life, there has been the news Budget is fair are contradicted in the Institute for Fiscal about General McChrystal, the resignation of key Ministers Studies report? within President Karzai’s Government and the early retirement of the UK special envoy to Afghanistan. Sir George Young: We are in the middle of a four-day Will my right hon. Friend use his influence to encourage debate on the Budget, and the hon. Gentleman will the Government to bring forward perhaps a ministerial have an opportunity later today and on Monday to statement outlining the latest situation, particularly given raise precisely the issue he has just touched on and to the talk from within the international security assistance get a convincing reply from one of my right hon. force—ISAF—comparing Afghanistan to Vietnam? Friends.

Sir George Young: I am grateful to my hon. Friend, Mr David Nuttall (Bury North) (Con): In view of the who will know that the Prime Minister made a statement announcement by the Chancellor of the Exchequer that on Afghanistan a few days ago and that the Government regrettably the civil list is to be frozen yet again, will the are committed to regular updates to the House on Leader of the House please arrange for a statement on Afghanistan from where there has indeed been some the latest position on the Queen’s forthcoming diamond more tragic news today. He will also know that Foreign jubilee being properly marked in the House and throughout and Commonwealth questions takes place on 6 July, the country? 437 Business of the House24 JUNE 2010 Business of the House 438

Sir George Young: I understand that the arrangements Geoffrey Clifton-Brown (The Cotswolds) (Con): Does on the civil list were dealt with by agreement, and I the Leader of the House agree that we should in no way entirely agree with my hon. Friend that appropriate wish to curtail demonstrations in Parliament square, celebrations are necessary. We have a year or two in but that the present system of almost permanent which to plan them, and I hope there will be an opportunity incumbency is unsatisfactory? The square should be to share with the House exactly how that will be handled. used on a much wider basis by more demonstrators and by people for recreation, including tourists. Pete Wishart (Perth and North Perthshire) (SNP): May I offer my most sincere congratulations to the Sir George Young: I agree with my hon. Friend. With English football team on reaching the knockout stage the Houses of Parliament, Westminster Abbey and of the World cup? Does the Leader of the House not Whitehall, it is a historic setting, and the presence of a agree that disqualification of the smaller parties in the shanty town right in the middle does no credit to the House from the Backbench Business Committee is in centre of one of the greatest capital cities in the world. danger of rendering the whole project undemocratic As he will know, the Mayor of London is responsible and illegitimate? What is he doing to ensure that all for the green in the middle of the square, and he is in the Back Benchers are equal and that all have an opportunity process of taking action through the courts against to participate in the business of the House? those currently occupying it. If he is successful, I hope that the green will be cleared and accessible to more Sir George Young: The Wright Committee recommended people. Personally, I have no objection to people lobbying that there should be a business committee of between and protesting outside the Houses of Parliament, but I seven and nine members. The House agreed the think that at the end of the day they should go home. establishment of a Backbench Business Committee of eight members a few days ago, and the allocation between Maria Eagle (Garston and Halewood) (Lab): In the the parties was done according to the formula with newspapers this morning, the Minister for Police has which the hon. Gentleman is familiar, and the minority been quoted as saying that parties did not get a place. However, that Committee “the last government mistakenly believed that the test of an will be re-elected every year, and I can only suggest that effective police force was how many officers it employed.” when members are elected for the current year, he opens We know that the Budget and spending review will a dialogue with as many of them as possible to ensure ensure that there are far fewer police on our streets that the voice of minority parties is heard at the Backbench across the nation, but at the recent general election, in Business Committee, and I am sure that its Chairman Garston and Halewood, my Conservative opponent has listened to his point. promised Andrew Percy (Brigg and Goole) (Con): The Leader “more officers on the beat in Liverpool” , of the House will no doubt be aware that following as did my Lib Dem opponent. The Deputy Prime years of under-investment in our magistrates courts, Minister, who visited on a number of occasions, also Goole magistrates and county court, along with said that the Lib Dems would put more police on the neighbouring Selby magistrates court, are scheduled for streets. Will the Leader of the House agree to a debate closure. May we have a debate on that important issue? in Government time on the new politics that the governing parties appear to be advocating, and on whether it Sir George Young: As my hon. Friend will know, the equates to no more than completely ignoring election Lord Chancellor yesterday announced a consultation promises and treating the electorate like dupes? on the closure of 157 magistrates and county courts. With public finances under pressure, we need to reduce Sir George Young: There will be Home Office questions costs wherever we can. We are committed to supporting on 28 June. Until the hon. Lady tells the House how the local justice, and the Justice Secretary will take all views Labour party would have filled the £50 billion gap in expressed into account before deciding which courts the public finances, we will listen with suspicion to her ought to be closed and when. points accusing us of making reductions that the Labour party would not have had to make had it won the Mr Tom Harris (Glasgow South) (Lab): I am not election. entirely sure about this new democracy malarkey.Although we are not allowed to say it, the Whips did a very good Mark Lancaster (Milton Keynes North) (Con): May job in previous Parliaments of ensuring that Select we have a debate on child abduction? We might then Committees had a good balance, geographically and in discuss the case of my constituent, Ken Spooner, whose terms of gender and experience. Under the new system, two British-born children were abducted by their Zambian I am not sure that that will be possible. May we have a mother in 2008. Having spent nearly all his life savings debate at some point on whether this new experiment in on successfully getting his children made wards of a democracy within the House has worked? I am not sure UK court, and having that registered in Zambia, even that the Wright reforms were the right reforms. now he cannot get them returned to the UK. Can the Government do anything to help? Sir George Young: I cannot believe that the hon. Gentleman is suggesting that we go back to the old Sir George Young: I am grateful to my hon. Friend system whereby the Whips nominated Members to Select for that question. Many Members of Parliament will Committees. It is astonishing that in the House of have experienced cases in their constituency in which Commons, the cockpit of democracy, an hon. Member the courts have awarded custody to the UK parent should make such a regressive suggestion that we abandon but the children are abducted to another country. Where elections and go back to nominations. the other country has signed the relevant Hague convention, 439 Business of the House24 JUNE 2010 Business of the House 440

[Sir George Young] Qualifications Day on 23 June 2010; notes that, while there have been significant improvements in the way it is possible through the courts of that country to get vocational qualifications are viewed, more needs to be the child repatriated, but it is difficult where the country done to raise the stature and demonstrate the benefits of concerned has not signed up to that agreement. We are practical and vocational learning; recognises that vocational pursuing the matter with the Foreign and Commonwealth qualifications provide the workforce of tomorrow with the Office, which will be in touch with my hon. Friend. practical skills needed to progress in the workplace and help employers improve and grow their businesses, especially Jim Sheridan (Paisley and Renfrewshire North) (Lab): in a challenging economic environment; and believes that May we have a debate on compensation payments for the many paths to success available should be celebrated.] Christmas Island victims. Such a debate would allow us to find out exactly why the compensation payments are It refers to Vocational Qualifications day, which was taking so long and to assure the victims that the payments held yesterday. According to Edge, 4 million vocational will still be made. More importantly, it would allow us qualifications were awarded last year, many of them in to choke off the financial gravy train for the legal Harlow. Will the Leader of the House give thought to profession. allowing an annual skills debate to be held on the same day? Sir George Young: The hon. Gentleman raises an important issue, and I will share his concern with the Sir George Young: It so happens that I have read Foreign and Commonwealth Secretary. On 6 July, there early-day motion 282. As my hon. Friend will know, the will be questions to that Department, and he may have coalition agreement contains a clear commitment in an opportunity to raise the issue then. this regard, which states: “We will improve the quality of vocational education, including Philip Davies (Shipley) (Con): May we have a topical increasing flexibility for 14–19 year olds and creating new Technical debate on the remit and membership of the National Academies as part of our plans to diversify schools provision.” Institute for Health and Clinical Excellence, which is rapidly in danger of becoming a nanny state monster. Emma Reynolds (Wolverhampton North East) (Lab): Most people thought that its job was to assess the Several schools in my constituency are expecting investment clinical and cost effectiveness of drugs, yet not a day under the Building Schools for the Future programme. goes by without it proposing some ridiculous measure, I am deeply concerned by the Leader of the House’s such as compulsory sex education for five-year-olds, statement earlier that we would have to wait until state handouts to food companies to produce healthier October to find out whether that investment would go food, smoking breath tests for pregnant women or ahead. May we have a debate on the issue, and will the minimum pricing for alcohol. May we have a debate on Government reconsider? getting NICE back to doing what it should be doing, rather than a load of garbage that it should not be Sir George Young: The outcome of the comprehensive doing? spending review will indeed be announced on 20 October, but I understand that a statement on Building Schools Sir George Young: No public body should engage in for the Future is likely to be made next week. mission creep and start encroaching on the responsibilities of other organisations such as school governing bodies Kevin Brennan (Cardiff West) (Lab): Further to the or, indeed, parents. My hon. Friend may have an comments of my hon. Friend and best mate the Member opportunity to share his concern with the Secretary of for Cardiff South—sorry, I mean Glasgow South— State for Health during Health questions, which I believe [Laughter.] It is a bit further north than the Cardiff will take place next Tuesday. constituency. Mr Kevan Jones (North Durham) (Lab): May we My hon. Friend the Member for Glasgow South have a debate in Government time on the politicisation (Mr Harris) obviously agrees with a predecessor of of the military, given that a story in this morning’s Daily yours, Mr. Speaker. Bernard Weatherill once told me Telegraph made clear that a row had taken place between “You can’t have civilisation without sewers, and you the Secretary of State for Defence and the Prime Minister, can’t have Parliament without the Whips.” May we have and given that it was announced last week that the a statement, or perhaps a debate, on the cost of democracy Prime Minister would personally interview candidates and of some things we have lost which are valuable, for the post of Chief of the Defence Staff? Is there not a including the ability of Opposition spokespeople to danger that any future CDS will be seen as merely a travel in order to carry out their duties? That has been Tory party stooge? taken away by our handing over such matters to people who know nothing about politics. Is it possible for the Sir George Young: The hon. Gentleman should not Leader of the House to look into the matter? I am sure believe everything that he reads in the papers, even in that he will want to make certain that the Opposition The Daily Telegraph. As for the question of public can do their job properly, as he did when he was in appointments, I can assure him that the proper procedures opposition. will be observed in the appointment of senor public officers. Sir George Young: The Government are very anxious for the Opposition to be able to hold us properly to Robert Halfon (Harlow) (Con): Has my right hon. account. Having been an Opposition Front-Bench Friend seen early-day motion 282? spokesman myself, I recall that the Short money makes [That this House congratulates the millions of people provision for travel for Opposition spokesmen. That is who gain vocational qualifications every year and celebrates the source to which the hon. Gentleman should look in their achievement on the third annual Vocational order to fund his important travels around the country. 441 Business of the House24 JUNE 2010 Business of the House 442

Mr Mark Williams (Ceredigion) (LD): The Amnesty part of the normal buying pattern for the cellar, on International report “From Protest to Prison” reveals which between £80,000 and £100,000 is spent per annum.” that up to 5,000 Iranians citizens are now languishing in prison following the disputed presidential election. There Barry Gardiner (Brent North) (Lab): When will the have been 150 executions in Iran, and persecution of Leader of the House announce measures to make good the gay community, the Baha’i community and, of his party’s excellent manifesto commitment based on course, women remains characteristic of the Iranian the Illegally Logged Timber (Prohibition of Sale and regime. May we have a debate on the human rights Distribution) Bill, which I presented as a ten-minute record of the regime and our Government’s necessary Bill? The party made that commitment in opposition. response to it? Will he also tell us whether the rumour that responsibility for it has been passed from the Department for Sir George Young: The hon. Gentleman has raised Environment, Food and Rural Affairs to the Department the important issue of the barbaric treatment of a for Energy and Climate Change is correct? number of prisoners in Iran. Foreign Office questions will take place on 6 July; alternatively, he may wish to Sir George Young: I would require notice of the apply for a debate in Westminster Hall, where the second part of the hon. Gentleman’s question, but he matter could be dealt with at greater length. has raised an important issue. There is a commitment, and it will be honoured. Chris Bryant (Rhondda) (Lab): May we have a debate on ministerial statements, or at least a statement on Mark Lazarowicz (Edinburgh North and Leith) (Lab/ statements? The right hon. Gentleman has suggested to Co-op): Given that there is plenty of time for general us that it is fine for Ministers to use written ministerial debates over the next few weeks, may we have an early statements even to deal with such highly controversial oral ministerial statement on Equitable Life? Before the issues as retirement and the closure of magistrates election the Government parties made lots of sympathetic courts in areas throughout the country, including Llwynypia noises to Equitable Life policyholders, but they are now in my constituency. He has just said that there will be a increasingly concerned that they are about to be betrayed. statement on something next week. Would it not have May we have an early ministerial statement to reassure been better to include that in his opening announcement? them that the promises made not just by the Government Would it not be better for him to say that he knows that but by 380 Members of Parliament across the House there will be a statement next week, so that it will be are to be kept? easier for us to scrutinise the Government? Sir George Young: This side of the House will accept Sir George Young: The business statement does not no criticism from Opposition Members about the treatment normally include written statements. We can give prior of Equitable Life policyholders. We can do better than notice of written ministerial statements, and I shall see a statement: we will introduce a Bill. whether that could be done in the instance that the hon. Gentleman has cited. However, we have not deviated Mr Speaker: Last but not least, I call Mr Nick Smith. from the policy on written ministerial statements that was adopted by the last Government, of whom he was a distinguished member. Nick Smith (Blaenau Gwent) (Lab): Yesterday in Parliament the Prime Minister said, in regard to Mr Tom Watson (West Bromwich East) (Lab): If the employment, that the Government would Leader of the House granted a debate on public sector “introduce our work programme, which will be the biggest, cuts, I could inform him of my plans for alternative boldest scheme in…. history”.—[Official Report, 23 June 2010; cuts. The Foreign Office recently admitted to me that Vol. 512, c. 288.] the ministerial wine cellar was worth £860,000 a year, Unemployment in my constituency is almost 12%. The and that it had just spent nearly £18,000 on replenishing Labour Government’s future jobs fund has been a it after the election. However, it was less candid about tremendous success, creating nearly 500 jobs, but when what was held in the collection. Does the Leader of the will we have a proper debate? When will we have further House think that Ministers should tell me what is in it, discussion and much more information about this important and should we sell it so that we are “all in it together”? subject?

Sir George Young: I could have said that the Chief Sir George Young: The short answer is “on Monday”. Secretary was not the only person who left the cupboard My right hon. Friend the Secretary of State for Work bare, and that the Government hospitality cellar had to and Pensions will lead Monday’s debate on the Budget, be replenished when we came to office; but I will not. and will focus on that subject. It says here: “The Government hospitality cellar is a The future jobs programme was expensive in comparison carefully managed resource that is integral to the service with other programmes. It found relatively short-term delivered by Government hospitality for all Government jobs paying relatively low wages. We believe that we can Departments. Expenditure since the election has been do much better than that. 443 24 JUNE 2010 444

Points of Order Ways and Means

12.9 pm Budget Resolutions and Economic Barbara Keeley (Worsley and Eccles South) (Lab): Situation On a point of order, Mr Speaker. My right hon. Friend the shadow Leader of the House raised today the issue of the announcement made by the Secretary of State CAPITAL GAINS TAX (RATES) for Health at 9.25 am on Monday of revisions to the Debate resumed (Order, 22 June), NHS operating framework. I checked personally with Question again proposed, the Library at 9.30 am and then throughout the morning for the written ministerial statement. It was not made That provision may be made in relation to the rates at which capital gains tax is charged. available until 12.40 pm, 10 minutes after the deadline for submission of an urgent question to you, Mr Speaker. Is it in order for me to ask now for a review of the way 12.12 pm in which written ministerial statements are made available The Secretary of State for Energy and Climate Change to Members? (Chris Huhne): I am delighted to open this day of the Budget debate and I want particularly to do three Mr Speaker: I am grateful to the hon. Lady for her things in this speech. One is to argue why the Budget point of order. The handling of matters of this kind, strategy—what used to be called the Budget judgment—is subject to its being orderly, is in the hands of the an essential and correct response to the balance of risks Government. As the Leader of the House is here, he that the economy faces. The second is to address the might wish to respond, and is welcome to do so. question that always arises at this stage of the business cycle, which is from where the jobs are likely to come The Leader of the House of Commons (Sir George during the recovery. The third is to outline why, like all Young): I would welcome the opportunity to have a chat other recoveries from deep recessions, we will build a with the hon. Lady immediately and explain my new economy. Indeed, a large part of the answer as to understanding of what happened on that day. from where the jobs will come are the new low-carbon industries which represent our third industrial revolution. Mr Speaker: I hope that that will suffice for now; I In five years’ time, the outlines of a sustainable and think it must. resilient economy will be clear, thanks in part to the route map that we begin to sketch out in the Budget—the Simon Hughes (Bermondsey and Old Southwark) carbon price floor, the green investment bank and the (LD): On a point of order, Mr Speaker. Before we come green deal. to the serious matter of resuming the debate on the Let me start with the point about the balance of risks, Budget, I wonder if I might crave your indulgence to see and pick up where we left off in the last debate, when whether you might be willing to consider doing something the right hon. Member for Doncaster North (Edward on behalf of the House. You might have noticed that Miliband) was disparaging me for the “Greek defence” yesterday saw the most titanic tennis match ever played—in as he put it. This determines the timing of measures to this great city of ours and in our country. Nicolas cut the budget deficit. The last time that we debated Mahut, the Frenchman, and John Isner, from the United these issues, the right hon. Gentleman accused me of States, ended up in the fifth set at 59-all when, for the performing a U-turn on whether there should be cuts in second day running, they were not able to complete that this year. I conceded that we in the Liberal Democrat match. They will take it to a conclusion today. I wondered part of the coalition had changed our minds. I also whether at the end of the match you might consider pointed out that we had done so on the basis of events inviting the two players to this House to show, in this in international capital markets, which have dramatically great summer of sport, how much we value sport in this raised the risks of our being engulfed in a firestorm. If country and how much we value people from all over that were to occur we would not be looking at a proactive the world coming to show their talents in this great plan decided by Government, but at a forced reaction to country of ours. market pressure, which would be unplanned, unconsidered and deeply damaging. Mr Speaker: What I would say to the hon. Gentleman is as follows. First, it may or may not be of interest to When I last made that point, the right hon. Gentleman him and the House to know that I myself watched said that there had been no change in circumstance that significant parts of that match—certainly for at least a justified a change in judgment. So I looked up the couple of hours in the evening—and was as fascinated figures for the key public finance borrowing interest by it as the hon. Gentleman. The second point is that rate: the 10-year bond yield for each of the afflicted his suggestion is an interesting one but, sadly, does not economies and for our own. The 10-year bond yield qualify as a point of order. My third point is that I determines the cost at which we finance our own borrowing, would be more than happy to invite the two gentlemen but it also sets the tone for interest rates in the rest of concerned to the House, but I do not have the foggiest the economy. The 10-year yield for the Greek Government idea whether they would be interested in accepting the on the day the election was called in this country, invitation. 6 April, was a little less than 7%; it was 6.98%. It had hovered at or around that level for most of the early If there are no further points of order, we come now part of the year, yet during the general election campaign to the main business. the Greek bond yield began lurching upwards, reaching a peak of more than 12% the day after our general election. 445 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 446 Situation Situation The right hon. Gentleman mocked my Greek defence I would merely remind the right hon. Gentleman of and said that the circumstances were so different that another dictum from a rather great economist—also we could not possibly be affected. I merely remind him something of a hero of mine; I should probably be that our Budget deficit is the second highest in the EU looking towards the Liberal Democrats here— and currently higher than that of Greece. It is true of J. K. Galbraith. He served a number of American course that Greece has substantially higher public debt Presidents, including J. F. Kennedy, and I should point to national income ratios than we do, but that is not as out to the right hon. Gentleman that it was J. K. consoling a thought as the right hon. Gentleman appears Galbraith who said that the essence of leadership was to think. Contagion does not work like that. It is, by for a leader to confront the greatest dangers of the definition, irrational and sees similarities even where a people they aspire to lead. The right hon. Gentleman is cooler mind sees differences. not doing that.

Barry Gardiner (Brent North) (Lab): Did the right Chris Bryant (Rhondda) (Lab): I can fully understand hon. Gentleman have the opportunity to watch and why the Secretary of State feels the need to justify his listen to the eminent Japanese economist on “Newsnight” change of position; he has a lot of voters to try to last night, who explained, on precisely this point, that explain himself away to. I can also understand why he were Britain to be paralleled with Greece, the bond makes the argument that some elements of the economic rates in Britain would not be showing a four point situation in Europe have changed over the past few spread at the moment and would not be being bought months. [Interruption.] No, I can see why he might so avidly by British companies and consumers? make that argument, but I do not see why that means he has got to change his principles, because I thought one Chris Huhne: The hon. Gentleman makes a point of his principles was that progressive taxation was about the circumstances, but markets travel on expectations. better than regressive taxation, and that that was why The expectations of what was going on in this country he had a great big poster about a VAT tax bombshell. It were very clear during the general election campaign: is his principles that we are worried about. the hon. Gentleman and his friends were about to lose the election. It is precisely the case with the contagion in Chris Huhne: The hon. Gentleman makes an interesting southern Europe that it spread quickly from Greece to point, but I would merely commend to him the Institute Spain and to Italy. Italy, of course, has a very high for Fiscal Studies analysis published today, which looks public debt to GDP ratio and is clearly in a different in particular at the distributional consequences of value category from ourselves. But that is not the case for added tax. From the tables the IFS has usefully Spain—one of the most substantial economies in Europe— produced—at this point I rather agree with my right where the central Government to GDP ratio is actually hon. Friend the Secretary of State for Business, Innovation much smaller than ours. The debt to GDP ratio in and Skills that it would be helpful if we had a PowerPoint Spain was 33% as against 60% in the UK at the beginning presentation pack in the Chamber for the edification of of this process. That is the problem that the right hon. those who seem to be unaware of the evidence—and in Member for Doncaster North and his friends have to particular from the analysis of the impact by decile of answer. It was absolutely clear from the rise in bond expenditure, it is very clear that VAT is not in fact the yields across southern Europe that we were in the firing regressive tax that the Opposition have said. [Interruption.] line and it would have been completely irresponsible for Please, just look at the IFS distributional impact analysis, us not to remove ourselves from it. as it is made clear there. The reason for that— Matthew Hancock (West Suffolk) (Con): Is the right hon. Gentleman aware that yesterday in the Chamber Chris Bryant: On a point of order, Mr Speaker. the shadow Chancellor argued that the problem with “Erskine May” makes it very clear that hon. Members Greece, and one of the reasons for what happened should be able to explain themselves without requiring there, was that the authorities did not act quickly enough? documents that they then want to present to the House. Does he share my surprise that the shadow Chancellor The right hon. Gentleman has just said that Members can combine that with an argument for not acting now should look at some document that he is referring to, here? but we are not able to do so. Should we not get back to the facts? Chris Huhne: My hon. Friend is absolutely right. There is no doubt that the lessons of history are completely Mr Speaker: It is true that the use of visual aids in the clear. Those countries that grip their problems and deal Chamber is disorderly. I am going to be charitable and with them do so in their own time and their own way generous, and interpret the Secretary of State as suggesting and in a proactive manner. Those countries that fail to that these are matters that people might like to take do so end up like Greece and Spain—with socialist forward at another time outside the Chamber, but they Governments—grappling with measures that will be far clearly to do not aid the debate in the Chamber now. more severe than anything that we have introduced in this House. I simply remind the right hon. Member for Several hon. Members rose— Doncaster North that Lord Keynes, the great Liberal economist who continues to be an economic hero to me, Mr Speaker: I fear that we are going to have a flurry was once famously accused of changing his mind. He of points of order. [Interruption.] No, they are not splendidly replied, “When the facts change, sir, I change points of order. I therefore call the Secretary of State. my mind. What do you do?” The right hon. Gentleman’s principal problem today is that the facts have changed Chris Huhne: Thank you, Mr Speaker. Let me merely and he has not changed his mind. That is precisely the assert, until the hon. Member for Rhondda (Chris argument. Bryant) has had the opportunity to check this for 447 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 448 Situation Situation [Chris Huhne] struggled with the collapse of the Thai baht, and I never want to see a British Government have to go cap in himself, that the distributional analysis of changing the hand to the International Monetary Fund as those main VAT rate produced by the IFS today shows that countries did, as Greece is now doing and as the friends there is not a regressive pattern to that when looked at of the right hon. Member for Doncaster North had to by decile of expenditure. do in 1976. I am very happy to defend this Budget, not least on Had we run the risk of contagion—of a sharp spike the basis that, astonishingly, it is the first Budget in in Government and probably short-term policy interest which we have a serious distributional analysis of the rates too—the impact on growth would have been severe. impact of its measures. We had 13 years of a Labour The truth is that the course of action that the right hon. Government producing Budget after Budget, and on Gentleman and his friends recommend—the Micawberish not one occasion in one Red Book was there a section course of hoping that something will turn up—would devoted in this way to distributional analysis. have put the British economy and British jobs in the international firing line, and no responsible Government Edward Miliband (Doncaster North) (Lab): Why did would have done that. Frankly, I have enough respect the leader of the Liberal Democrats, now the Deputy for the intelligence and judgment of the right hon. Prime Minister, say on 7 April 2010 that we should Gentleman to believe that he would not have adopted remember that VAT is a regressive tax? How does the that stance if he and his friends had been re-elected. Secretary of State square that with the fact that he is seeking to claim from the Dispatch Box today that it is Ian Swales (Redcar) (LD): Does my right hon. Friend not a regressive tax? agree that regressive taxes are those that stay the same regardless of people’s income, such as council tax, Chris Huhne: If VAT is raised right across without whereas progressive taxes are those that increase with the exemptions that we have for food, children’s clothes income, such as value added tax, under which the rich and books, for example, and without the lower rate on will pay more because they will spend more? [Interruption.] fuel, then it is a regressive tax. It is a standard feature of I say that as one of the qualified accountants in this basic micro-economics that indirect taxes are more House. [Interruption.] regressive than direct taxes, but I ask that Members please look at the IFS analysis, because it seems to me Chris Huhne: Before Opposition Members start chortling to undermine directly the case that the Opposition are away, let me say that my hon. Friend makes a very good attempting to make. point. I would merely remind Opposition Members which Government raised council tax so steeply—the Rachel Reeves (Leeds West) (Lab): The right hon. most regressive tax in the entire toolkit. Year after year Gentleman talks about the IFS numbers on the under a Labour Government it was pushed up and up distributional impact. Does he agree with the following and up. numbers from the IFS? The impact of the measures Let me now turn to the issue of growth and jobs. At announced on Tuesday on the incomes of the poorest—the this stage in every business cycle that I have followed, bottom—decile will be minus 2.6%, whereas it will be going all the way back to the recovery from the bust that minus 1.5% for the next two deciles, then minus 1.4%, minus followed the Barber boom in the early ’70s, the cry 1.3%, minus 1.1%, minus 0.9%, minus 0.6%, minus always goes up, “But where will the jobs come from?” 0.6% and minus 0.7%. So the bottom decile will see a That cry is particularly urgent whenever, as has too reduction in their income of minus 2.6% and the top frequently happened, Governments are trying to deal decile will see a reduction in their income of minus with the legacy of past fiscal misdeeds. However, the 0.7%. Is that regressive or progressive? forecast from the Office for Budget Responsibility is a reasonable central assessment and is similar to independent Chris Huhne: The hon. Lady clearly did not listen to forecasts. It shows that the biggest impetus to growth my earlier answer. When looking at the distributional this year comes, as is usual at this point in the cycle, impact, it is very important, particularly with indirect from the inventory cycle. Recessions inevitably put tax measures, to look at the expenditure effects, not the businesses under enormous financial pressure. Businesses income effects. The IFS report shows very clearly the try to raise cash by cutting output and by meeting the enormous distinction between the conventional answer demand for their goods from stocks, but that process on the distributional impact on income and the answer has to exhaust itself as those stocks of finished goods when we look at the expenditure effects. run down. More of the demand for those goods then has to be met from output, and businesses once again The choice for this Government has been clear: either gear up production. That is where we are today. The we manage the transition to lower borrowing to sustain inventory cycle is a powerful stimulus. The OBR forecast the recovery, or we will have those choices yanked from has it contributing 1.2% of gross domestic product this our hands by the markets and we will face force majeure. year. It is far better to design a fair package, as we have done, than to have an unfair package imposed on us that no Mr Adrian Bailey (West Bromwich West) (Lab/Co-op): one has had the time or thought or energy to design. Let me take the right hon. Gentleman back to his No fiscal package responding to a market emergency defence of his party’s volte-face on VAT. He explained that I have ever seen has been fair, whatever Opposition that VAT was not a regressive tax because of the range Members may say. I spent five years of my pre-political of exemptions from it. Will he tell us what exemptions life analysing sovereign risk and sovereign crisis. I was there are now under the coalition Government that in Seoul before Christmas 1997, in Djakarta at the time were not there before that make it less regressive than it of the food riots, and in Bangkok when the authorities was before? 449 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 450 Situation Situation Chris Huhne: The hon. Gentleman knows that the Chris Huhne: I honestly think that the hon. Gentleman exemptions are exactly the same. I merely make a standard is misreading the situation dramatically. We had three point that is made by the IFS every year when analysing announcements; I have mentioned two of them already the distributional consequences of any financial measures. and I am going to expand on the green deal. It was an We can always take individual measures—the hon. emergency Budget, and I would not have expected a Gentleman refers to VAT, but, as my hon. Friend the substantial programme of reform on green taxes in an Member for Redcar (Ian Swales) has mentioned, the emergency Budget that was designed to take us out of distributional consequences of what the Labour the firing line. We have a clear coalition commitment, Government did with council tax were appalling because going forward, to a rise in revenue from green taxes as a it is such an unfair tax—but we must look at the proportion of total revenue. That is in the coalition package as a whole. If one looks at the section of the agreement and I have absolutely no doubt that that is document that describes what the distributional what we will see when the full Budget is brought forward consequences are, one sees that the package as a whole in the normal way after the processes of consultation is a fair one. throughout Government. An important part of the answer regarding where jobs will come from is, of course, from existing businesses Mark Lazarowicz (Edinburgh North and Leith) (Lab/ as they recover as I have described. That will in turn Co-op): Even if we accept what the right hon. Gentleman feed confidence, consumer spending and investment. says about the emergency Budget, there was a very However, there is also a deeper answer. carefully costed proposal on air passenger duty in the Lib Dem manifesto—at least my Liberal opponents said that it was carefully costed—which seems to have David Wright (Telford) (Lab): Will the right hon. gone missing. Why has that proposal been replaced by Gentleman give way? some future discussion in some future commission? Why has it become something that only might happen, Chris Huhne: Let me make a bit of progress with the if it could, apparently, have added £3 billion a year to argument. The deeper answer is the profound change the Budget now, at a time when that money is clearly that must take place in our economy over the next needed by the Government? 10 years, which will also be a great source of growth, jobs and profit. I am talking about the transition of our Chris Huhne: I hope that the hon. Gentleman realises economy—the third, or green, revolution—to being that there will be a consultation on that proposal in the powered from low-carbon sources. That is potentially autumn. I have no reason to believe that it will not be as great a shift as some of the biggest changes in our brought forward in the normal course of events with economic history—from water to coal, from coal to oil ordinary Government announcements. It is part of the and from gas to electricity.With each of those fundamental coalition agreement and is widely welcomed. I believe changes of technology, there was a wave of new investment that it was in both the Conservative and the Liberal that powered the recovery of a new and very different Democrat manifestos, but not everything can be announced economy. We can look at the legacy of the rapid recovery on day one. The overwhelming priority for this Budget in the 1930s from the point of maximum downturn in has been to ensure that we can sustain growth and jobs 1931. That was one of the fastest periods of British by removing ourselves from the substantial and real risk economic growth, with the development of new electrical of contagion from the financial crisis in southern Europe. appliances, other light industries and the suburbs around That has been the overwhelming priority. our major cities. Let me cite some numbers to give a feel for the scale Duncan Hames (Chippenham) (LD): Given my right of the potential transformation that we face as a result hon. Friend’s comments on the need to invest in the of the green revolution. Thanks to the ageing of our infrastructure needed for a low-carbon energy future, energy infrastructure, my Department estimates that we will he assure me that his Department’s investments in will need £200 billion-worth of new investment in the the south-west wave hub will endure and survive the next 10 years. That scale of investment will have substantial current turbulence associated with the machinery of macro-economic consequences for businesses in the government of its sponsor body? supply chain and for all those who work in them. I am pleased that my right hon. Friend the Chancellor announced Chris Huhne: I thank my hon. Friend for that question. in the emergency Budget, even though the focus was Obviously, he knows that we will go through the inevitably on averting a fiscal crisis, two measures that comprehensive spending review in the autumn, and the will support that investment. The first was our coalition normal process is to make announcements when we commitment to remodelling the climate change levy have been through that, but I have no reason to doubt and providing a carbon price floor to encourage low-carbon that the Government’s commitment to the support of sources of energy, renewables and others. We will consult infant wave, tidal stream and wind technologies will on that in the autumn. The second was, of course, the continue and I am confident that there will be commitment to the green investment bank. We will be announcements reflecting that priority, which is in the looking at the scope of the bank through the autumn coalition agreement. and we hope to bring forward proposals on that. Mark Lazarowicz: Will the right hon. Gentleman Toby Perkins (Chesterfield) (Lab): A lot of give way on that point? environmentalists were deeply disappointed that there were not more green taxes. Is that just another example Chris Huhne: I shall give way a bit more, but let me of how little influence Liberal Democrat policy has had make a little progress. I have been making the argument on what was a classic Tory Budget? that the need to replace our ageing energy infrastructure 451 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 452 Situation Situation [Chris Huhne] Chris Huhne: I certainly do not believe that we can rely on achieving the sort of comprehensive approach will give enormous impetus to growth in coming years. that I am talking about merely through introducing The other part of the argument has to be about looking pay-as-you-save measures. The reality is that there will at the centrepiece of the Bill that my Department will have to be cross-subsidy, as there already is, but particularly bring forward later in the year and at what we are to the fuel poor and to those in homes that are hard to proposing on the green deal. That, too, is an enormously heat and which need solid-wall insulation and so forth. significant package that will have genuine macro-economic I am afraid that the hon. Gentleman will have to wait consequences for the transformation of the economy for the final proposals in the Bill, but I very much agree and the creation of a whole new industry. that we need a comprehensive set of proposals to deal with the whole of the residential housing sector. Those Edward Miliband: That was not mentioned in the proposals must cover homes owned by owner-occupiers Budget speech. but also the private rental sector, where many of the worst offenders when it comes to energy inefficiency are Chris Huhne: The right hon. Gentleman mutters from to be found. I hope that that is what he will see. a sedentary position that that was not mentioned in the Budget speech, but the Budget documents contain a Barry Gardiner: I am grateful once again to the right clear commitment in that regard. It is very clearly hon. Gentleman. I welcome the measures that he is something that we are proceeding with rather dramatically. outlining and we will want to study them carefully, but I The point that I want to make is that this will be the am troubled by his suggestion that one element of the first genuinely comprehensive attempt to make sure that coalition agreement was a decision that green taxes all of our housing stock is retrofitted. We know that should rise as a proportion of the revenues into the most of the homes that we will be using in 2050 have Exchequer. I have heard him make the argument, from been built already, so we need a comprehensive way to this side of the House, that green taxes should be used get carbon emissions from our residential housing sector to change behaviour but not as long-term revenue streams way down if we are to meet our 80% overall reduction on which the Exchequer can depend. I agree with that, targets. but will he explain why that element of the coalition agreement is now seen to fund resource into the future? Dr Alan Whitehead (Southampton, Test) (Lab) rose— Chris Huhne: The hon. Gentleman knows, as I do, Barry Gardiner rose— that the two points that he makes are not as mutually contradictory as he suggests. There is a long history in Mark Lazarowicz rose— this country of applying so-called “sin taxes” to alcohol and tobacco, and they have had the very desirable effect Chris Huhne: Before I give way, let me make a couple of helping to get people off smoking and of cutting of points about the economic significance of that approach. their drinking. The success of those taxes is not perhaps First, the potential increase in demand as a result of the as great as many hon. Members on both sides of the creation of new industry will be absolutely enormous if House would like, yet I am assured by the latest Red we can get the Bill, the framework and the pay-as-you-save Book documents that the Treasury continues to raise a measures right. By way of indication, we would be very substantial amount of money from both tobacco talking, in practical terms, of 14 million homes that and drink excises. could be insulated with the support of the green deal. The reality is that, while green taxes will change Purely arithmetically, if the average cost were £6,500, behaviour, the responsiveness of behaviour is such that for example, we would be talking about a market worth revenue will continue to be raised for a very substantial literally tens of billions of pounds—£90 billion over a period. I have to say that, in the present circumstances, substantial period. that point is likely to commend itself to the Treasury, We are talking about creating a new industry that which always used to follow the motto of Colbert, the would be genuinely jobs rich, as it would use skills finance minister of Louis XIV, who said that the art of already present in the construction sector and need taxation lay in plucking the maximum number of feathers unskilled labour as well. from the goose with the minimum amount of hissing. In that context, green taxes certainly are a very justifiable Dr Whitehead: Will the right hon. Gentleman give way to pluck the maximum number of feathers. way? I shall give way once more, to the hon. Member for Edinburgh North and Leith (Mark Lazarowicz), and Chris Huhne: I will happily give way to my neighbour then I shall wind up and let the debate make progress. in Hampshire. Mark Lazarowicz: I am very grateful indeed to the Dr Whitehead: I thank the right hon. Gentleman for right hon. Gentleman for giving way. I want to leave giving way. He envisages that his green deal will involve Louis XIV and return to future technologies, and I was insulating and raising the energy rating of 14 million interested in the response that he gave to the hon. homes in the UK. The previous low-carbon transition Member for Chippenham (Duncan Hames) about support plan envisaged that that would be done through the for wave technologies. The right hon. Gentleman will provision of subsidised loft, cavity-wall and other forms probably know that two of the UK’s leading marine of insulation. Has he succeeded in defending the money renewable energy businesses have their headquarters in set aside in his Department for subsidising that, or will my constituency. Can he assure me that support for he rely on Tesco to do the job instead? marine renewables will be at the centre of his policies 453 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 454 Situation Situation for every constituency in the UK, and not just those in the gulf of Mexico and our exploration west of Shetland, the south-west of England? More specifically, will he opens up a terribly important point about the whole tell us how the Government’s support for marine renewables thrust of what we are intending to do. That is that we will be affected by the Budget that we are discussing? have been given a wake-up call to move towards a low-carbon economy even more rapidly than before. Chris Huhne: Quite properly, the hon. Gentleman That is not merely for climate change reasons but wants me to anticipate announcements that will be because an economy that is more independent of volatile made by the Government in the normal course of sources of energy from geopolitically troubled parts of events. I understand that game, as I have played it the world is also more resilient to oil price shocks. If the myself on many occasions. At this stage, however, I can name of the game is not to end boom and bust, as the merely tell him that I visited Aberdeen recently for the right hon. Member for Kirkcaldy and Cowdenbeath All Energy conference, where I had interesting and (Mr Brown) used to promise, but at least to moderate fruitful talks with the marine energy specialists currently boom and bust, then an important objective for my testing equipment off Orkney. I am deeply committed, Department has to be to ensure that that moderation as I believe the Government are, to making sure that takes place by making energy security a more serious what is a genuinely interesting source of potential future objective and defining energy security not merely in prosperity and jobs continues to get the support that it terms of physical interruptions—problems, say, in the needs to get off the ground. straits of Hormuz—but in terms of our ability to withstand Obviously, we are in very tough times and have had price volatility and price shocks. to cut our cloth to fit our straitened circumstances, but I I think I have gone on far too long—[Interruption.] believe that marine energy offers real opportunities. We As the hon. Member for Islington South and Finsbury have made a number of proposals in that regard, and (Emily Thornberry) says from a sedentary position, and we will continue to support the sector. I can agree with her—[Interruption.] Sorry, the hon. Member for Wallasey (Ms Eagle)—I was being barracked. Chris Bryant: Will the right hon. Gentleman give I want to make a key point about the prospect of the way? move to a low-carbon economy providing us with a new type of economy that will be more resilient to shocks, Chris Huhne: No. I said that the previous intervention will be jobs-rich and will provide genuine prosperity, would be the final time that I would give way before employment and profit for British businesses, including winding up, and I have given way to the hon. Gentleman opening up enormous opportunities in export markets. before. The framework that we have set out enables us to do that, and I commend the Budget to the House. By the way, I should add to my response to the previous intervention by saying that we have confirmed some of the grants and soft loans made available, for 12.51 pm example, for wind energy. Edward Miliband (Doncaster North) (Lab): May I start by congratulating the Secretary of State? He is by Dr Sarah Wollaston (Totnes) (Con): Will my right my reckoning the first Liberal to open a Budget debate hon. Friend give way? in peacetime since 1914. That is a remarkable honour, which we should note today. Chris Huhne: I am not going to give way again. I am sorry, but I am going to end up—[HON.MEMBERS: “But Chris Huhne: I am delighted to accept the right hon. it’s a new Member!”] I am sorry, I did not realise that Gentleman’s commendation, but I should remind him the request came from a new Member. that my right hon. Friend the Secretary of State for Business, Innovation and Skills opened the debate. Dr Wollaston: I am extremely grateful to my right hon. Friend for giving way. My constituency is home to Edward Miliband: I do not want to be a pedant about Transition Town Totnes, of which he may have heard. It this, but he was not the first speaker in the day’s debate. leads the way in looking at climate change and peak oil, That was the only point that I was making. The Secretary and I am sure that the people involved will be very of State can accept my congratulations or not. I also interested to know the size and scale of the projects that want to congratulate him on something else. Today we will be funded by the green banks. What will be the time have seen the completion of a remarkable political scale? When might they be able to start looking forward journey by the right hon. Gentleman. Remember the to making applications? Liberal Democrat leadership election, Mr Deputy Speaker? He was the tribune of the left. He ran to the left of the Chris Huhne: I thank my hon. Friend for that current leader of the Liberal Democrat party. Today we intervention. [HON.MEMBERS: “Answer!”] Opposition heard the most remarkable political transformation from Members know perfectly well that there are certain left-wing Liberal to Thatcherite. He could be the Reg processes in Government that we have to go through. Prentice of 2010. He could easily qualify as a Conservative We have to consult. We have to make sure not only that candidate at the next election on the basis of the speech we produce decisions at the moment that both Opposition that we heard today. and Government Members would like, but that those There is a proud tradition here—Reg Prentice, Hartley decisions are right and have gone through all the normal Shawcross; maybe soon he will join those predecessors. processes. But the problem for the right hon. Gentleman is that in However, I want to pick up on one very important order to complete this political journey, he has to engage point. My hon. Friend mentioned peak oil, something in the most remarkable amount of doublespeak, which that, especially in the context of Deepwater Horizon in speaks to the heart of the traditions of liberalism. I 455 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 456 Situation Situation [Edward Miliband] Let me develop my argument. First, let us look at economic growth. There was an honest difference of come to this House today to praise the traditions of opinion at the election about economic growth and how liberalism; he comes to bury them. What is the legacy of we could ensure that growth, which is the surest way of John Maynard Keynes? [Interruption.] I know that the reducing the deficit, could be maintained. The Labour right hon. Gentleman does not want to hear it. John party was on one side of the argument. We said that Maynard Keynes taught us about the dangers of fiscal growth should be maintained by maintaining spending austerity at a time of global downturn. This Budget this year. The Liberal Democrats—the Secretary of pays no heed to those warnings. State admitted this—were also on our side of the argument, What is the lesson of William Beveridge? It is the and the Conservatives were on the other side of the principles of social insurance and protecting the most argument. needy. What is the legacy of David Lloyd George? In The Secretary of State made much play in his speech 1909, 101 years ago, David Lloyd George delivered the about Greece—the Greek defence as I called it last time. people’s Budget. The people’s Budget—I say this as a He said that everything had changed because of Greece. Labour Member of Parliament—was a remarkable example Has the right hon. Gentleman changed his position of showing that one could be fair at a time of fiscal because he is now in power and must defend a Conservative challenge. Nobody could claim that Tuesday’s Budget Budget, or is his change of position genuine? If it is was anything like a people’s Budget. So I am afraid I genuine, we should give him credit for that. I am afraid I give up on the right hon. Gentleman, but there are some have to say to him in all candour that it cannot be a Liberal Democrats in the Chamber today, and of course genuine change. Look at the facts. He made great play the new Tribune of the left is the hon. Member for of the fact that Greek bond yields had gone up from Bermondsey and Old Southwark (Simon Hughes). I am 7% at the beginning of the election campaign to 12% on afraid that we have to put our faith in him as far as this the day of the election. The question is not whether Budget is concerned, because we have to give up on the Greek bond yields went up but what was the impact on Secretary of State. [Interruption.] My hon. Friends say the UK. What happened to UK 10-year bond yields he is conning me. I think that we should give him a between those two dates? Ten-year bond yields went chance during this debate. down during that time, so there is no evidence for his The Conservatives will vote for this Budget at the claim about contagion. completion of the Budget debates on Tuesday because The right hon. Gentleman must face a hard and they vote for unfair, unjust, unequal Budgets. I say to uncomfortable truth. I do not blame him for taking the Liberal Democrats in all candour that they have to chance of office that he was offered, but he must come make a judgment. If the Budget is akin to the people’s clean with us and admit that he has had to accept a Budget of 1909 and if it shows fairness at a time of macro-economic strategy totally at odds with the one fiscal austerity, they should by all means vote for it. But that he went into the election defending. if it is a rerun of Lord Howe’s Budget of 1981, they have a duty to vote against it. I know that power is Chris Huhne rose— tempting. The Secretary of State is in power and has been tempted by office, but there are Liberal Democrat Edward Miliband: I will give way to the right hon. Members who are not in office, and they need to Gentleman. Perhaps he will say that because he wants examine their consciences between now and next Tuesday. to do good things at the Department of Energy and They should ask themselves, “Is this what I came into Climate Change—I do not doubt his good intentions—it politics for?” That is the argument that I shall develop was worth paying the price of supporting a Budget that in my speech. he would have opposed before the election. That is the Chris Huhne: I wish to nip in the bud any temptation reality of the situation. for the right hon. Gentleman to make parallels between what my right hon. Friend the Chancellor has announced Chris Huhne rose— and what Lord Howe announced in the early 1980s. The right hon. Gentleman says that this Budget is worse, but Mr Deputy Speaker (Mr Lindsay Hoyle): Order. May if he looks at the fiscal tightening set out in the cyclically we have short interventions? The right hon. Gentleman adjusted budget deficit in the Red Book, it is 0.5% of has already made a speech, and there are a lot of GDP.The right hon. Gentleman is too young to remember, Members to follow. but the Howe Budget was more than 2%. So this is a very different Budget. We are talking about something Chris Huhne: May I remind the right hon. Gentleman that allows growth to continue, and indeed safeguards that the former Chancellor of the Exchequer said that growth, precisely because it takes us out of the firing the ice always looks most solid just before it cracks? The line of the southern European crisis. contagion affected other countries in Europe including, Edward Miliband: I am afraid I disagree with the as I cited, Spain, which had a lower central Government right hon. Gentleman. The fiscal tightening may be less debt to GDP ratio than ours, and it is irresponsible to than the Howe Budget, but he has to look at overall suggest otherwise. conditions in the world economy. There is a reason why President Obama has written to G20 leaders ahead of Edward Miliband: I would give the right hon. Gentleman the meeting this weekend to warn about the dangers of more credit if he had been more explicit about all these early exit from fiscal stimulus. President Obama is dangers before the election. worried about the world economy. Of course one has to Interestingly, the right hon. Gentleman has been look at fiscal tightening, but one also has to look at sufficiently concerned about the public finances to put conditions in the world economy. pen to paper. We should take at face value the concern 457 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 458 Situation Situation that he expressed at the start of the financial crisis in an During the debate on the Gracious Speech, I told the interesting article in The Guardian titled “Cameron and right hon. Gentleman that we would hold him to account Osborne are peddling skewed facts and scaremongering on the Sheffield Forgemasters decision—and he will be on public finances”. He felt moved to open his article by held to account for it. I have to say to him in all honesty writing: that the decision is short-sighted, damaging and wrong. “You do not normally expect opposition politicians to leap to The Labour Government approved a loan to Sheffield the defence of the government of the day, but there is an important Forgemasters—not a grant, a loan. We had money from national interest in doing so on the key issue of public finances. If the European Investment Bank—those people do not David Cameron’s view that the ‘cupboard is bare’ gains ground, throw money at problems when it is not required—and not only will policymakers feel more constrained, but we will risk Westinghouse, which was going to order parts for the thinking and talking ourselves into a worse downturn.” nuclear power stations that it wants to build in the UK, He does not even have a blank record to defend, because which will involve one of the only two reactor designs his record is one of defending us on the public finances— that we are going to have in the UK. The decision was [Interruption.] I do not want to take up too much time, therefore central not only to our economic strategy but but if he wants to explain away his article, I shall give to our green strategy.I know that the right hon. Gentleman way to him. does not like nuclear power, but prejudice against it will get us nowhere, either economically or in relation to the Chris Huhne: The right hon. Gentleman really has to green industries of the future. take on board my case that while there was no evidence The grant to Sheffield Forgemasters would have given of contagion at the beginning of the election campaign, us the ability to make key components for the nuclear there was massive evidence by the end of it. I changed industry that currently have to be sourced from outside my mind when the facts changed. He has not done so, Britain, but the Government have turned their back on but he should not be proud of that. it. The Minister of State, Department of Energy and Climate Change, the hon. Member for Wealden (Charles Edward Miliband: No, at the end of the election Hendry), who is in the Chamber, is an honourable guy campaign the right hon. Gentleman was offered the whom I respect, because he supports nuclear power—that chance of office—and that is the sad truth of why he is slightly complicated given his Secretary of State—but changed his mind. during a debate on Tuesday, he said about Sheffield Forgemasters: Chris Huhne: The right hon. Gentleman recently “If one went to a bank and said, ‘I need an overdraft because I accused me of not changing my mind because I wanted want to give more money to charity,’ the bank would question the office when he suggested in a newspaper interview that wisdom of that approach.”—[Official Report, 22 June 2010; our negotiating sessions with the Labour party showed Vol. 512, c. 26WH.] that we had somehow become right wing because we Sheffield Forgemasters is not a charity. It has the potential were insisting on cuts in this financial year. He cannot to be at the centre of the green industrial revolution that have it both ways: either we accepted the cuts for our country needs. I have spoken to the management of opportunistic reasons because we wanted office; or we Sheffield Forgemasters, the unions and people in Sheffield, are saying that the facts have changed and we need to so I know that they are bemused by the Government’s move the economy away from the risks of contagion decision. from southern Europe. I was the Minister who, along with Lord Mandelson, signed off the loan—it is not a grant—after we had Edward Miliband: The right hon. Gentleman’s defence looked at the arrangements over 18 months in government. is becoming even more contorted—I am not sure that It passed a whole set of value-for-money considerations, even I understand it now. I shall make some progress. yet the Government have cut it off. I hope that the Secretary of State can force a reconsideration of the The real problem with the Budget in respect of economic decision— growth is that it ignores the lessons of Keynes. The right hon. Gentleman is defending a Budget that, on the Chris Huhne rose— Chancellor’s own figures, will reduce growth by 0.3% next year and lead to 100,000 fewer people in work not just Edward Miliband: I have given way to the right hon. this year, but next year, the year after and the year after Gentleman a number of times, but if he is going to say that. Even that scenario is optimistic according to at the Dispatch Box that he will reconsider the decision, independent forecasters such as the Chartered Institute I shall give way, albeit more in hope than expectation. of Personnel and Development, which says that unemployment will go on rising, so there are real dangers Chris Huhne: Does the right hon. Gentleman really in the Budget strategy. think that an appropriate use of public money would be A further problem with the Budget is that it has no to ensure that the major shareholders in Sheffield plan for growth. The right hon. Gentleman waxed Forgemasters do not have to reduce their equity holdings lyrical about green industries, but he can point to nothing below 51%? I do not think that it would be. in the Budget that will support the green industries of the future. The Liberal Democrats said at the election Edward Miliband: That is an extraordinary statement that they opposed cuts this year, but they are making to make on the Floor of the House. A set of commercial not only the efficiency savings that the Conservative negotiations was carried out with Sheffield Forgemasters. party promised at the election, but real cuts to regional The decision was signed off by the permanent secretaries development agencies, university places and Government of DECC and the Department for Business, Innovation support for industries of the future, the most outrageous and Skills as a value-for-money loan, but now the right example of which is the case of Sheffield Forgemasters. hon. Gentleman questions that. 459 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 460 Situation Situation [Edward Miliband] fair, and I think it important to quote him exactly. These are not my words, but those of the Chancellor of The right hon. Gentleman’s explanation is different the Exchequer. He said: from that offered by the Chief Secretary to the Treasury, “Overall, everyone will pay something, but the people at the who said that the loan represented value for money, but bottom of the income scale will pay proportionally less than the the Government did not have the money. The Secretary people at the top. It is a progressive Budget.”—[Official Report, of State is not only wrong to oppose the loan, but 22 June 2010; Vol. 512, c. 180.] confused about the reason why it is not being offered. I That is simply not the case. That was exposed yesterday am afraid that the Government are hampering the by the IFS. When one looks at the Budget measures, green revolution that we need. one sees that it is regressive, not progressive. According to the IFS, as my hon. Friend the Member for Leeds Toby Perkins: Does my right hon. Friend agree that West (Rachel Reeves) said, as a result of the measures in the fact that a Liberal Democrat Chief Secretary to the the Budget the poorest 10% will pay four times more as Treasury came to the House to tell us the decision about a proportion of their income than the richest. I repeat: Sheffield Forgemasters, and that a Liberal Democrat four times more. Secretary of State is supporting that decision today, is just another sign of how the Conservative Government Matthew Hancock: Will the right hon. Gentleman are using the Liberal Democrats as a fig leaf, which will give way? shame the leader of the Liberal Democrats in his Sheffield constituency? Edward Miliband: I will give way to the hon. Gentleman in a minute, because as a former adviser to the Chancellor, he might be able to explain what is going on—but let me Edward Miliband: My hon. Friend is completely right. offer an explanation first. He has experience of booting out Liberal Democrats locally—something that will happen in many constituencies What the Chancellor did was an extraordinary sleight at the next general election. It is blinkered short termism: of hand. He published in the Red Book figures that take that is the only way to describe what they have done. credit for Labour’s last Budget, which was progressive, and he combined the impact with that of his regressive What is the assessment of the Budget from a green Budget. Remember, this is a guy who claimed in his point of view? Friends of the Earth says that the Budget speech that there was a renewed transparency “June Budget does little to suggest” and honesty in the Budget process. What he had done was exposed within hours by the IFS. I give way to his that the coalition will keep the former adviser. “promise to be the greenest Government ever.” That is not a very good start, but I want to reassure the Matthew Hancock: I can certainly be more proud of Secretary of State by telling him that there is praise for having been an adviser to the current Chancellor than if the Budget from an unlikely quarter. Roger Helmer, a I had been an adviser to the one who said that he had Conservative MEP and a well known climate change abolished boom and bust. denier, quite likes the Budget and says: Following on from the right hon. Gentleman’s misleading “Green lobbyists are whingeing that ‘this is the least green use of statistics, which are described by the OBR on Budget for years’. Brilliant! Well done George. Maybe we’ve come page 93 of the Red Book as “misleading”, does he agree to our senses”. with me that the IFS said that when all the Budget I have to tell the Secretary of State that for the first measures are taken into account, the impact is greatest Budget in which he was involved to have congratulations on the richest 10%, not the poorest 10%, and that he is from Roger Helmer and condemnation from Friends of quoting partially? the Earth is not a very good start. Edward Miliband: I want to be generous to the hon. The second test we should apply to the Budget is that Gentleman, as a new Member of Parliament, but I fear of fairness. Is it a fair Budget or not? Let us be clear: as that he has walked into the most enormous elephant well as going beyond the decisions that the Liberal trap. Let me read from the last page of the IFS handout: Democrats advocated for the first year, the Budget goes well beyond the pace of deficit reduction that they “Treasury said that reforms to be implemented between now and 2012-13 progressive, but recommended. To sustain the Secretary of State’s argument, we are talking about not only cuts now, but a much —This is mainly because of reforms announced by the previous faster timetable. He shakes his head, but the Institute government for Fiscal Studies analysis published at the time of the —They only look at reforms to 2012-13—benefit cuts announced election shows that the Liberal Democrats had set out yesterday for subsequent years hit the poorest hardest”. exactly the same pace of deficit reduction in 2014-15 as The IFS concludes: we had, but this Budget goes beyond that, with £30 billion “So likely that overall impact of yesterday’s measures was of extra cuts in spending and the rise in value added regressive”. tax. If the Chancellor wants to bring a new transparency The question at the heart of the Budget debate over and honesty to the debate, he cannot take credit for the past 48 hours is where do the cuts fall? Who bears measures announced by my right hon. Friend the former the burden? That is the question that Lloyd George Chancellor and say that they are somehow part of his asked in this House years ago. The truth is becoming Budget. clearer: this is a regressive Budget, not a fair one. The Chancellor claimed in his speech that the Budget was Chris Huhne rose— 461 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 462 Situation Situation Edward Miliband: The right hon. Gentleman is itching Joan Ruddock (Lewisham, Deptford) (Lab): And the to get back in, but let us be clear. The Chancellor’s Lib-Dems. words—the words a Chancellor uses in his Budget speech are a grave matter—were: Edward Miliband: I am coming to them in a minute. “It is a progressive Budget.”—[Official Report, 22 June 2010; That has been the case historically, but the difference Vol. 512, c. 180.] this time is that the Liberal Democrats are faced with a I cannot see how that can possibly be the case, but choice. The hon. Member for Bermondsey and Old perhaps the right hon. Gentleman, in his newfound role Southwark (Simon Hughes)—someone I respect; a person of defending the Conservative party, can. of good conscience who came into politics to make our country fairer—has a big decision to make. He is not Chris Huhne: The reality is that it is perfectly legitimate going to fall for the stuff we have heard from the for the Treasury to analyse pre-announced measures as Secretary of State for Energy and Climate Change, well as the measures that are announced, because a new trying to explain away the Budget. Government reverse measures that they do not like and confirm measures that they agree with. Look at, for The hon. Member for Bermondsey and Old Southwark example, the decision to freeze the threshold at which knows an unfair Budget when he sees one, so he has a the higher rate of tax begins to be paid. Does the right decision to make in the coming days. He has an honourable hon. Gentleman support that measure? It will increase path to take. He can say, “Up with this I will not put.” the progressive element by taking more tax from the That is what Liberal Democrats throughout the country best-off. will expect him to do. Maybe he will defeat the Budget, maybe he will get the Government to rethink parts of it, Edward Miliband: The doublespeak just gets worse. but he could lead a movement, not just of Liberal The Conservatives spend the election attacking the Labour Democrats in the House but of Liberal Democrats Government for putting up national insurance contributions outside the House who will join him. He did not come on employees, then they produce their own Budget into politics to put up VAT or to freeze child benefit. He which is regressive and unfair, then they realise that that campaigned against the freeze in child benefit in the will be pretty damaging for them, so they take credit for 1980s under Mrs Thatcher. He did not come into politics a measure that they used to attack. That cannot possibly to abolish the health in pregnancy grant. He did not make sense. The truth is that the Chancellor made a come into politics to do those things, and he is not in claim in his Budget speech that the Budget was progressive. office. He does not face the choice of resignation: he The Institute for Fiscal Studies, to which the Chancellor faces the choice of how to vote. In all candour I say to referred in his Budget speech, has said clearly that if him that he wanted a Lib-Lab alliance after the last one looks at the measures announced in the Budget one general election because he knew what would happen sees that it is a regressive Budget—and not just regressive, otherwise. He saw it in the runes. He saw where things but deeply regressive, because the poorest 10% pay would go, and he was proved right. But now he faces the three and a half times more than the richest 10%. However ultimate choice in politics, which is between principle much they may twist and turn with the help of their new and expediency—and he should follow principle. friend, the Secretary of State for Energy and Climate Change, who is auditioning to be a member of the Ian Swales: Yesterday The Independent described the Conservative party, it will not help them. People can Budget as a social democratic Budget. I came into smell it. People can see through the doublespeak. politics via the Social Democratic party, and I am very happy with the Budget. Mr Mark Field (Cities of London and Westminster) (Con): The right hon. Gentleman has made a statement about national insurance that he knows does not tell Edward Miliband: The hon. Gentleman should not anything like half the truth. Our objection always was believe everything that he reads in The Independent.I to the employer’s element—the jobs tax element—of say in all seriousness to him that, as we saw, the presentation the national insurance rises. It is that element that we from the Chancellor was that this was a fair Budget, have been very glad to put to one side, rather than the and for a few hours it fooled some people, who thought employee’s element, to which he gives such undue that perhaps it was fair. But that has been completely prominence. exposed and blown apart by the Institute for Fiscal Studies. The Secretary of State shakes his head, but we Edward Miliband: I have enormous respect for the all know what he would be doing if the Budget had hon. Gentleman, but he will have to do better than that. been presented and he was not in government. He would be railing against it with his great eloquence. He Rachel Reeves: Can my right hon. Friend confirm would be talking about what he came into politics for: that, in addition to what I said earlier about this Budget his belief in fairness. affecting the top decile by just 0.7% and the bottom One of the central arguments of the leader of the decile by 2.6%, Labour’s March Budget had an impact Liberal Democrats at the election was that the poorest on the top decile of 7% and absolutely no impact at all people in our society paid too much in tax and the on the income of the poorest decile? There is a different richest paid too little in tax. That was the central and way of doing a Budget, and that was a progressive powerful claim made by the Liberal Democrats at the Budget. election. The question one must ask is: what happens as a result of the Budget? It makes the situation worse. Edward Miliband: My hon. Friend is right, of course. How can the hon. Member for Bermondsey and Old That is the difference between a Labour Budget and a Southwark possibly vote for that? This is not a Budget Conservative Budget— that he can in all conscience support. 463 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 464 Situation Situation [Edward Miliband] 1.26 pm

The Budget does not help to lay the foundations for Simon Hughes (Bermondsey and Old Southwark) economic growth and it is not fair. It also attacks some (LD): I am happy to take part in what is clearly an of the most important things that we have in this important debate, in which we are invoking the spirits country to help the poorest families, such as tax credits. of forebears of mine, of ours, whom I pray in aid as The Chancellor said in his Budget speech that he would part of the traditions to which I belong. Lloyd George, reduce payments to families earning over £40,000 next Keynes and Beveridge are indeed part of the family of year, but we learn from the Red Book that the cuts are progressive liberals, of whom I regard myself as a for those earning over £25,000 a year—not well-off modest inheritor. families. The most important thing that was announced in the What about fairness? How have the banks fared as a area of energy and climate change and environmental result of the Budget? The banks were a big target for the policy, the specific theme of today’s debate, was the Liberal Democrats during the election campaign. green investment bank. It had been a Labour party [Interruption.] The hon. Gentleman shouts “Bank levy”. commitment, and the Conservative party and Liberal Perhaps this is the saving grace for the hon. Gentleman. Democrats were clear that it should be invented, created Perhaps that is something that he can cling on to. It is and got up and running. It is absolutely central to this interesting, because that is starting to unravel too. There Parliament’s strategy that we set up that bank in the was much trumpeting of the bank levy in the Budget as near future. It must not be a modest little invention a fairness measure. But the reality is that the corporation hidden away in a corner; it must be a central part of the tax cut from 28% to 24% will help every bank in the new stage of the British economy and it must draw on country. HSBC’s banking analysts say: money from the private sector, which will be used for projects that would not otherwise be funded. But it “We’d expect most domestically-orientated banks…to be better must also help us to invest in the new generation of off after four years than they were pre-Budget.” green jobs that will make us again the country that can When the measures are taken together, the banks are export our manufacturing abilities and the success of not worse off but better off—another shred of credibility the world. For the last 25 years, we have slipped back in for the Budget destroyed. Deutsche Bank says that it is manufacturing and exports in these areas and have a good outcome for the banks. It is plain to see who relied too much on the City, on finance and on banking. bears the burden. This is not a Lloyd George Budget; it That is not enough to sustain a modern economy, and it is a repeat of the unfair, unequal, unjust Tory Budgets is not enough to change the environmental way in of the past. which we do our business and honour our international obligations. I end on a point about trust and credibility. The Liberal Democrats said that there should be no spending The second specific area that was much discussed cuts this year; now they support them. They said that when I shadowed the right hon. Member for Doncaster they supported our four-year deficit reduction plan; North (Edward Miliband) and my neighbour the right now they do not. They said that there should be no VAT hon. Member for Lewisham, Deptford (Joan Ruddock) rise; now they support it. They said that there should be was how to ensure that households and individuals play protection for young people through the future jobs their part. The Labour party started that process and I fund; now they support its abolition. pay credit to the right hon. Lady and her right hon. Friend for beginning to ensure that we make households It takes a long time to establish an honourable political energy efficient, reduce bills, insulate homes properly, tradition, but it takes a very short time to destroy it. protect the vulnerable, and so on. But the scheme was This is a week of judgment for the Government, but in never big enough; it was always a set of schemes that particular it is a week of judgment for the Liberal were confusing and lacking in coherence. The phrase Democrats. I say to them very clearly that they should “Green Deal” comes from the Conservative manifesto, exercise their conscience and be willing to oppose the but the idea comes from both manifestos. That we have Budget. The question that the hon. Gentleman and his a green deal for households must also be a central part colleagues need to consider this weekend is whether of the Government’s strategy. We need to ensure that they are still the party of Keynes, Beveridge and Lloyd the new housing that is built and the housing that needs George. We all know that those three men would turn in to be renovated and improved give us the safe, warm their graves at the idea that the inheritors of the liberal and pleasant housing that we need. My right hon. tradition were supporting this Budget. Friend the Secretary of State knows as well as anybody Today, Liberal Democrats face the ultimate choice else, because he was the architect of the policy in our between power and principle. They did not come into party a mere three years ago for a carbon neutral politics to raise VAT, freeze child benefit or do all those Britain, that the crucial area here is to ensure that the other things. No doubt they think that voting against poor and the vulnerable are protected first, and that the the Budget would truly make them turkeys voting for people who spend a huge amount of their money on Christmas. The opposite is true. If they vote for the fuel when they cannot afford it are given the help that Budget it will bring unfairness and injustice to the they need. One of the criticisms that I must repeat of people whom they claim to represent. It will go against the Labour Government, which I made when they were everything that they have claimed to stand for, and it in office, is that when it came to helping the fuel will destroy for ever their claim to be a progressive poor—those who pay more than 10p in the pound of alternative. That is why they should vote down this their income on fuel—they sadly failed. They tried, and unfair, unjust Tory Budget that will damage our economy I do not doubt their integrity in trying, but they failed, and divide our society. That is why they should join us and we have to do better than that. We have to ensure in the No Lobby to vote down the Budget next week. that single people on their own, who make up 40% of 465 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 466 Situation Situation households, and those with families do not have the economic realism in the nuclear industry. That has been ridiculous, out-of-control bills that they had; that we our position, and it has been accommodated in our save the fuel and reduce the energy that we need as a parties’ agreement. country; and that we reduce our climate change liability. There is another matter on which I have lobbied the Government but not yet seen anything emerge, and if it Dr Whitehead: Does the hon. Gentleman agree that, could be dealt with in the ministerial winding-up speech if a programme such as that which he envisages is to that would be helpful. It is about helping with biodiesel have any real traction, there is an absolute imperative to that is made from recycled vegetable oil. I declare two defend and increase the almost £200 million that was set interests: I drive a vehicle that uses it; and there is a firm aside for the insulation of hard-to-treat homes and in my constituency from which I purchase it, and which social housing? Will he put that in his book as a red line in turn takes it from firms locally. It is a good and on Government investment in the energy efficiency environmental product, but the financial incentives for uprating of social housing? If that investment does not biofuels do not yet encourage the industry to grow. It is appear, will he publicly underline his opposition to an industry of small businesses, it ought to be incentivised energy efficiency improvement methods that are not but the Treasury loses out because of the wrong incentives underwritten properly by Government funding? as well as inadequate incentives for the sector. I hope that that issue will be looked at, and that we might Simon Hughes: The hon. Gentleman has a good, introduce an amendment to the Finance Bill in order to honourable and knowledgeable track record on the pick up on that individual and ring-fenced item. issue, and, as he would expect, in this Parliament I have On the Budget as a whole, the right hon. Member for already met the Housing Minister, the Secretary of Doncaster North rightly said that I had always assumed State for Communities and Local Government and my that the more natural coalition, had it been achievable, friend the Secretary of State for Business, Innovation would have been between the Labour party and ourselves. and Skills to ensure that those points are made. We are There is no secret about that, but in the end it proved just beginning the debate about where the spending cuts undeliverable on two counts: first, the numbers did not must be made, and a coalition of Members needs to put add up, and this country needed a secure, majority the case for retaining that expenditure which is necessary Government; and, secondly, the Labour party was not to pump-prime, drive and incentivise the housing stock willing to move on key issues. They included political change that we clearly need. The other central point, on and electoral reform and a fairer taxation system—in which the Government have made a commitment, is to particular, taking people on low incomes out of tax. introduce the power of general competence to local The measures that commend the Budget are specifically councils, so that they have much more flexibility over items that were in the Liberal Democrat manifesto, on how they address such issues. which I did fight the election. They include, first, linking Thirdly, on the green agenda, I note the comments pensions with earnings. The link was broken by that my right hon. Friend the Secretary of State for Mrs Thatcher and never reintroduced by Labour, but its Energy and Climate Change made about the carbon restoration next year was committed to in this Budget. price, and we await with interest the publication of the Secondly, there is the measure on taking people who proposals to reform the climate change levy. However, I have an income of less than £10,000 out of tax gradually, remind him that we ought to reconsider introducing the the first wave of which was introduced in the Budget, emissions performance standard, which both our parties and which matters not to the absolutely poorest who were willing to do. Labour resisted it, but I hope that it have no incomes, but specifically to pensioners and gets back on the agenda as a way of ensuring that we working people who have a small income. Thirdly, there make progress not just in our country, but throughout is the measure on increasing capital gains tax, because Europe. we believe that it should be set at the same level as Fourthly, and more controversially, there is nuclear income tax. There has been a debate among Government power, to which the Budget referred not specifically, but Members on that issue, and there is a difference in view, indirectly in relation to Sheffield Forgemasters. I made but there has been a move in that direction, which I my position clear about nuclear power before the election, applaud and recognise. and when the initial announcement was made about the Sheffield Forgemasters loan, and I have always believed Toby Perkins: I congratulate the hon. Gentleman on that the nuclear industry will not have a viable future his appointment as the deputy leader of the Liberal unless it receives public subsidy. I have never had a Democrats, but I fear it strangely apposite that at the theological opposition to nuclear power. I believed that moment he sits all alone on the Liberal Democrat it was the wrong answer, contributing too little to Benches. If he feels that this is a coalition Budget, will emissions reduction and to the country’s power needs, he explain how much worse it would have been for the but in that context the Sheffield Forgemasters loan was poorest people without the influence of the Liberal inconsistent with a policy of not subsidising the nuclear Democrats? power industry. The announcement is difficult for Sheffield and for Simon Hughes: I am, and always have been, very clear south Yorkshire, but we have to have a policy that about that issue. When it was obvious that there was no applies from the beginning to the end, and we have to possibility of a coalition with the Labour party, we had be tough on that. In reality, other countries such as the option either of letting the Conservatives become a Germany have now introduced a tax on nuclear power minority Government or of being in coalition with stations to make up for the fact that the industry them. I am very clear that it was better for the country benefits from a carbon price but does not pay for the and for the issues that matter to me that we were part of clean-up of the legacy nuclear waste. There must be the Government—that we were influencing matters and 467 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 468 Situation Situation [Simon Hughes] was the view of some people in the Tory party behind the scenes, but there was a rumour that they would ensuring that there was a shared programme, not a think it was a good thing. That is why, during the Conservative programme. I say that completely honestly, election campaign, we said that we thought it was a bad and the hon. Gentleman, with a constituency that is in thing and challenged them to agree with us. Nevertheless, some ways not dissimilar to mine, would expect as none of us ruled it out. I wish it were not here, as it is much. I have made it my business to battle for the clearly less progressive than other taxes where people people whom I represent in order to ensure that we end pay on the basis of income, but it is a necessary measure up with a fairer Budget, and a fairer Britain as the given that we have to fill the huge debt that the Labour outcome. The election, the Budget and the next exercise, party has left us. the spending cuts, must all be judged on whether we end We will vote for the Budget next week. However, if up with a fairer Britain. there are measures in the Finance Bill whereby we can Let me therefore address the remaining issues that improve fairness and make for a fairer Britain, then we follow from that. There has been some press speculation will table amendments to try to do that. That is where that, because certain items are expensive, they are we can make the difference, as we will during the unaffordable and should be dropped. They include items spending review that will follow in the months ahead. for the poor, such as the freedom pass and the winter fuel allowance. There is no issue between me and my friends on the Treasury Bench, but the coalition deal is 1.41 pm a deal and what has been agreed must stand. There Mr Tom Clarke (Coatbridge, Chryston and Bellshill) cannot be any unpicking of items in that deal, otherwise (Lab): I have seldom been so disappointed with a the whole thing risks falling apart. There is no suggestion speech by the hon. Member for Bermondsey and Old of that from the Government; there is a suggestion from Southwark (Simon Hughes) as with the one that we outside the Chamber of changes. However, the deal have just heard. I suspect that he will find life even more must be that we go down the committed road. We uncomfortable as time goes on. Having listened to the signed up and the Conservative party signed up, all speech by the Secretary of State, and then heard the compromising where appropriate, and that must stand. support offered by the hon. Gentleman, it seemed to me If there were any suggestion that it change, there would that many Liberal Democrat supporters will be thinking be trouble. I do not think that it will change, because I that this must be the biggest conversion since the Chinese have heard nothing from colleagues in government general baptised a whole army with a hosepipe. We have suggesting that they want it to, but let us be clear from had a whole election campaign in which many of the the beginning: it is a deal, and if it is stuck to, it will last things commended today by Government Members the five years. were not only blatantly opposed by Liberal Democrats, I turn to yesterday’s Institute for Fiscal Studies report. but disowned. The IFS is a respected organisation. It made clear that I have had the privilege of serving for many years in the Budget as a whole increases fairness, but that if it the constituency in Lanarkshire that I represent, where excluded the matters that were implemented by the my next door neighbour was the late John Smith. More Labour Government in the Budget earlier this year it than once, he said to me, “You know, I judge a Budget would not be. However, the Budget does not exclude on the impact I think it has on ordinary young men and them; it has endorsed and continued them. The right young women, with all their aspirations, living in a hon. Member for Doncaster North and I know each council house in Lanarkshire.” It is on that test that I other well, but the Government have continued with make my views clear. those elements that the previous Labour Chancellor introduced in the routine Budget earlier this year. We have heard today a defence of a Budget that is thoroughly unfair and absolutely vindictive towards a large number of people in this country, region by region, Helen Goodman (Bishop Auckland) (Lab): Are you not least those in my own constituency. I am not at all taking credit for it? surprised that the Conservatives have supported what is a Tory Budget; it is the kind of Budget that they have Simon Hughes: No, we are not taking credit for always wanted to introduce, with or without a global it—we are just making sure that we look together at the crisis. However, I have to say that the apologies from the measures that this country has as its tax regime in the Liberal Democrats are profoundly unconvincing, as coming days and months. they have shown again today. As Jeremy Thorpe might On that basis, this is a Budget that produces greater have said, “Greater love than this no man has—that he fairness. There is difficulty in reaching the people at the laid down his principles to save his Mondeo and his red very bottom end of the income scale who are not in box.” work, and there are other difficult areas. However, my I have to tell Government Members frankly that their right hon. Friend the Chief Secretary and my hon. claims for this already discredited Budget stand in stark Friend the Member for Thornbury and Yate (Steve contrast to the consequences for my constituents in Webb), the Pensions Minister, who come from a proud Coatbridge, Chryston and Bellshill. For several years tradition of knowing these issues well and campaigning before the election, and then again during it, the for the poor and the disadvantaged, would not have Conservatives talked about “a broken Britain”, but no signed up to something that undermines all the sorts of Budget has done more to introduce a broken Britain campaigns that they have been fighting for. than this one. The most vulnerable have been attacked, There remains the issue of VAT. I did not want a with housing benefit cut, child benefit frozen, the health Budget with a VAT increase, nor did the Conservative in pregnancy grant scrapped, and the maternity grant party, and nor did the Labour party. I have no idea what slashed—and we are told that this is a fair Budget. 469 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 470 Situation Situation Then we come to what I would regard as perhaps the important matter. While the Government have been most appalling aspect of this Budget—the increases in hammering away at the poorest people in the poorest VAT, hugely painful because they are clearly regressive. parts of our country, they have treated the banks with a A 2008 report by the Institute for Fiscal Studies feather duster. They have hardly responded to the problems demonstrated that cuts in VAT benefit the poorest that the banks themselves created, and no Member on 10%= most, while increases hit them hardest. That is their Benches can defend that. why during the election the Tories were particularly ambiguous on this specific issue, although I have no Rachel Reeves: Does my right hon. Friend agree that doubt that they had this policy in mind all the time. To it does not seem fair that the welfare bill will be cut by be fair to the Liberal Democrats, they did warn us—for £11 billion, but we are asking the banks to contribute example, by unveiling a poster showing a “VAT bombshell”, only an extra £2.4 billion? with their leader standing beside it. What we got on Mr Clarke: Absolutely—that is an excellent point. Tuesday was a Trojan horse with their leader and his Indeed, I wish now to compare to the Budget’s response friends standing inside it. to local government, and to people applying for disability We are told that we are all in this together—that this living allowance, with the way in which the Government Budget is indeed fair. I invite the House, then, to have treated the banks. They have certainly not done so contemplate for a few moments what it means for a in a way of which my constituents, or the disability and constituency like mine. In Coatbridge, Chryston and local government organisations that I know of, would Bellshill, the average wage of those in work is approve. £18,000. Unemployment stands at 7.4%—lower than in What the Government have done to local government 1997, but clearly unacceptable. Let us look at Tatton, is to cut, cut and cut again. They have offered the public the Chancellor’s constituency. The average wage is a freeze in council tax but failed to explain that the over £25,000, and unemployment stands at 2.9%. In services that they and the House have imposed upon Twickenham, the Business Secretary’s constituency, the local authorities cannot possibly be carried out without average wage is over £33,000, and unemployment stands other services being slashed, including social services at 2.5%. Yet this Budget is being applied to the whole and social work for the most needy. That is clearly nation. missing from the thoughts of coalition Members. I Of course there is a crisis, as recognised most recently invite them to compare that with their approach to the in the letter that President Obama sent to those involved banks, which I was heckled for mentioning. in the G20. However, the words that he repeatedly used What about those who seek to live on DLA? We are about investment, about real fairness—and, above all, told that one by one, they are going to be recalled and about growth—were hardly reflected in the Budget that re-examined. I was a Member of the House in the early we are asked to approve. More sustainable ways to 1980s when we had that version of Thatcherism, and I reduce the deficit clearly apply to the growth that President want never again to see men who have worked in the Obama has promoted and that, along with progressive mining industry, and who have to be helped into my taxation, Labour Members strongly support. surgeries because they can hardly breathe, being cut off I can see that for the Tories this is a matter of from benefit because they are told that they can walk ideology. They do not like the public sector: they have 50 yards. If that is the type of policy that the so-called made no bones about that. The public sector provides coalition Government are planning, which I believe it is, education, excellent services from the police, and they can expect the utmost opposition. infrastructure for providing new jobs—and, my heavens, At a time when there is a clear demand for housing, we will need them after this Budget. How can they what the Government have done to housing support is possibly argue that this Budget will not lead to simply disgraceful. I say that as somebody who was in unemployment? We need to build more schools. We local government before coming to the House. Even the need to make more industrial parks available, hoping to Evening Standard had to point out last night that because invite inward investment, via the regional authorities, of the Government’s approach to housing benefit, more and making more money available so that the Government poor people would be made homeless. I predict that are creating the environment by which jobs can be local councils faced with the financial challenges that provided. that represents will build fewer and fewer social houses, which the Liberal Democrats told us before the election Kwasi Kwarteng (Spelthorne) (Con): What does the were one of the important issues for them. right hon. Gentleman think about the remarks written Matthew Hancock: Will the right hon. Gentleman down by his party’s former Chief Secretary to the give way? Treasury, the right hon. Member for Birmingham, Hodge Hill (Mr Byrne), who said, I believe, “There is no more Mr Clarke: I will not, because I know others want to money”? speak. I wish to conclude now for that very reason—many hon. Members wish to speak about the situation in their Mr Clarke: I had assumed that the hon. Gentleman constituencies and the Budget’s impact on ordinary had a better sense of humour. It was clear to the whole people and communities. They want to do so partly country that it was a joke, so I do not regard that as because we have seen this situation before—not in this being a serious point. generation, but certainly in the 1930s and the ’80s, and The Government blame the public sector for the we do not want to see it again. recession, but what about the banks? [Interruption.] This is a regressive and dangerous Budget that will We must ask that question. My right hon. Friend the hit the poor hardest. Yesterday, my hon. Friend the Member for Doncaster North (Edward Miliband) dealt Member for Derby North (Chris Williamson) referred at some length with how we have approached that to Orwell’s “Animal Farm”, and I wish to conclude by 471 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 472 Situation Situation [Mr Tom Clarke] Michael Fallon: I accept both those points, and I am not drawing exact parallels with Greece and Spain. I am quoting some words from that work: “Twelve voices”—I making the much more general point that when a look at the mixture of Liberal Democrats and Conservatives country is warned by all the international agencies and on the Government Benches— commentators, and depends on the international markets “were shouting in anger, and they were all alike…The creatures to finance its accelerated borrowing, it has to listen to outside looked from pig to man, and from man to pig, and from those warnings. That is why we are now confronted with pig to man again; but already it was impossible to say which was a second Budget in three months. which.” The Budget is to be welcomed because the pain is But the British people can see through that. quite clearly shared. We can of course argue about its 1.54 pm relative impact on various deciles and so on, and we Michael Fallon (Sevenoaks) (Con): It is always a have had that argument. We can also discuss whether pleasure to follow the right hon. Member for Coatbridge, we should include the measures taken in earlier Budgets Chryston and Bellshill (Mr Clarke), but he will not be or just consider this Budget itself. What cannot be surprised that I cannot agree with his analysis. I wish to argued about, however, is that the pain is spread across make two specific comments to him. First, he spoke all income groups and sectors. My constituents will passionately on behalf of the poorest people in his bear some of that pain, just as the right hon. Gentleman’s constituency, but I cannot see how one helps the poorest constituents will in Coatbridge. and those out of work in Coatbridge by messing up the Let us be clear about some of the spending cuts that public finances and producing spending plans that are will ensue: they are legacy cuts; in the end, they are unaffordable and cannot be carried through. Making Labour’s cuts. We discovered that some of the spending promises of that kind does the poor no favours. promises made in January would, shockingly, have been financed from the reserve, which was set aside to ensure Secondly, I disagree with the right hon. Gentleman’s that our troops in Afghanistan would be properly financed accusation that we take pleasure in the measures that if new need arose there for equipment and so on. It were announced on Tuesday. There are many things in would have been raided to finance the extra spending the Budget that I do not take pleasure from, and many commitments that were announced in the pre-election spending cuts are coming that Members in all parts of rush. The plain fact is that the spending was unfunded. the House will probably wish had not been made. There We cannot continue to spend £700 billion and raise only are certainly tax increases in the pipeline that we would £545 billion in taxes. That gap must be bridged and the not have wished for. However, many of the decisions Budget, for the first time in a series of Budgets, sets out that the Chancellor has taken were simply unavoidable a credible path for achieving that. because of the mess that we have inherited. We take no pleasure in the judgments that have had to be made. I am pleased that, when the Chancellor considered the make-up of those spending totals, he decided not to It is heartening to Members on the Government side cut the capital spending programme further. That is of the House, after so many years of hubris, boasting important. Clearly, there are implications for jobs, and and declaration, to have a Budget that is so clear, honest the capital spending totals were already being halved and straightforward. Even if the right hon. Gentleman from their peak. There are explanations for that, but it disagrees with the measures in it, it sets them out clearly was right not to cut them further. and simply. It is refreshing to have a Budget that takes the longer view—a Budget for a whole Parliament. It is I note that when the Chancellor reviewed the capital good to know now the structure of the measures in it, spending programme and future capital spending unpopular and unpalatable as some of them are to commitments, he was careful to preserve some of the Members on our side of the House as well as his, and commitments for key infrastructure projects in, for that if those decisions are carried through, the current example, the northern cities. It is not true that the structural deficit will be closed by the end of this Budget hits Scotland, Lanarkshire or the north harder Parliament. than other parts of the country. The dualling of the A21, for which we have long campaigned in Kent, was It is refreshing also to have a Government who face one of the first casualties of the spending review. Long- up to a situation that has deteriorated rapidly, as we cherished projects in the south-east, too, are being have seen in the eurozone. There is no exact parallel further postponed. The pain is being spread across the between our deficit and that of Greece, or between our country. That should be borne in mind when particular debt and that of Spain, but there was a parallel between decisions, such as the loan to Sheffield Forgemasters, the Labour Government and the Governments of Greece are considered. and Spain in that all of them ignored successive warnings. I want to make three further comments about the They were all warned by the International Monetary Budget judgment. First, I assume—obviously, I must Fund, the OECD and the European Commission to await the completion of the spending review—that there start putting their public finances in order, and they will be further contributions from annually managed ignored those warnings. That is why we have had to be expenditure. I assume that, as well as the decisions that confronted with a second Budget in a year—an emergency have already been made—I accept that Labour Members Budget that puts right the weaknesses that have been may oppose them—about housing benefit and some of identified. the other grants that have been mentioned, there will be Mr Tom Clarke: When the hon. Gentleman makes more changes through some of the welfare reforms that comparisons with other countries, will he bear in mind my right hon. Friend the Secretary of State for Work that we in Britain are not in the euro? Will he also, as he and Pensions and his team are considering. did when he was on the Treasury Committee, recognise Secondly, I hope that, when an element of spending is that there is a big difference between short and long-term protected, it will not be wholly insulated from the same debt, and that that matters? downward pressures that we apply elsewhere to reducing 473 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 474 Situation Situation management, eliminating unnecessary bureaucracy and economy and Welsh families and communities. However, focusing more spending on the front line. That must I begin by asking whether the Budget was even necessary, apply equally to health and international development never mind whether it deserves the billing of an “emergency as to other matters. Otherwise, in two, three or four Budget.” It was clearly a political and ideological Budget, years, those who happen to work in the health service designed to shrink the state, and not one that was will end up being better rewarded than those who have economically needed. chosen to work in the education service or the police Indeed, even the Financial Times columnist, Sam service. That would not be right. Brittan, called it a “totally unnecessary budget” in his Thirdly, I want to say a little more about the proposed column of 18 June. We already had figures from the freezes. There are freezes on public sector pay, child March Budget from the new Office for Budget benefit and council tax. The reasons for them are all too Responsibility, and we all knew that the major obvious: the private sector has had to accept a huge announcements are actually the cuts that will be announced measure of freezing—I pay tribute to trade unions in in October in the comprehensive spending review. the private sector for the extent to which they accepted On Tuesday, the UK Government confirmed that, the necessary restraint on pay and the changes in working except for health and overseas aid, departmental budgets practices that had to follow in the teeth of one of the are to be cut by 25% during this Parliament. If we map worst recessions we have had to face. It is therefore right that level of cuts on the position in Wales, around that, as well as freezing pay, we should continue to 60,000 public sector jobs are at risk—15,000 more than consider the greater flexibilities that we need, and equity the 45,000 job cuts planned by Labour in March. Indeed, between the private and public sectors. Working practices, based on today’s Financial Times figures, 65,000 public various entitlements and inherited rights should also be sector jobs are in danger in my country. That is very examined. It is not simply a question of freezing pay for worrying for many families in Wales, and we believe two years and exposing public services to some of the that it is unnecessary and avoidable. problems that we have experienced in the past with incomes policy, when there is immediate demand for Clearly, the national debt and deficit must be tackled, catch-up, immediate pressure for comparability and so but there is a question of timing, and I cannot believe on. While the freezes are in place, it is important to that increasing the cuts in this way and at this time is in continue the search for radical reform, which helps any way beneficial to the people of Wales. However, the restructure those services. That should apply across the implementation of the recommendations of the Holtham public sector, where we have frozen pay and in local commission on funding and finance in Wales would be government, where we will freeze council tax. We must beneficial. A major plank of that was the recommendation continue the drive for more efficient services, and shared that a floor of 114% of English spend be implemented services between councils. immediately, to ensure that Wales does not lose out further under the Barnett formula. The principle may also apply to some of the frozen benefits, such as child benefit, where freezing the benefit Plaid Cymru is not alone in calling for that. Government does not wholly tackle some of the inherent difficulties Members may recall that the Liberal Democrat leader with universal benefits—the deadweight cost that is in Wales said on 7 June 2009 that expended on those who are well able to afford to bring “the Westminster Government should act immediately” up their children but are entitled to exactly the same in introducing a floor. That £300 million a year would amount of child benefit as those much further down the save around 9,000 public sector jobs in Wales, but income scale. Those issues need to be addressed while would be only the first step on the way to the fairer, the benefits are frozen. needs-based formula that we need. It is therefore As we rebalance the economy away from the expansion disappointing that all this has been put on the back in the public sector to encouraging the private sector to burner. With so much work on the issue contributed by grow again—I welcome the enterprise measures in the Gerry Holtham and his team, as well as three other Budget—it is enormously important to continue to independent reports, I cannot see the need for an additional focus effort on reskilling and ensuring that those who commission after a successful referendum on further have to change their jobs and seek the new opportunities powers for the National Assembly. that are being provided have the necessary skills to alter There were other areas where the new Budget is both their position in the labour market. We must get alternative tough and unfair. The most important are the cuts in training providers in alongside jobcentres and existing the welfare budget, to the tune of £11 billion in coming services. years. As figures in the Financial Times showed, any Labour Members have described the Budget as a cuts in welfare or the public sector hurt areas that are gamble. It is not a gamble, but a necessary judgment to already in need of more. The change from upgrading restore the public finances and get our economy growing benefits according to retail prices index inflation to again in a way that provides the jobs of the future. We upgrading them according to the consumer prices index are in politics to make such judgments, and I am will mean a lower rate of benefit growth than before, as delighted that my right hon. Friend the Chancellor has well as a stealth saving. Having worked for Citizens set out his judgment so honestly in the Budget that I Advice Cymru, I can tell hon. Members that people support. who rely on benefits will struggle because of those changes, and we are talking about real people and 2.7 pm families on low incomes, not the “welfare scroungers” Jonathan Edwards (Carmarthen East and Dinefwr) that the political right like to caricature. (PC): In my speech today, I will examine several different Specifically, the proposals to lower the number of issues of Welsh, UK and international significance, people on disability living allowance are a cause for noting the impact of the new Budget on the Welsh concern. In Wales, there are more than 240,000 people 475 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 476 Situation Situation [Jonathan Edwards] evasion? Instead, cuts to Her Majesty’s Revenue and Customs staff will reduce capacity to collect due tax on DLA. Having seen the impact of tribunals and from those intent on not paying their fair share. stricter qualification criteria on other benefits, we have There were elements of the Budget that must be concerns about how the new changes to eligibility will welcomed, not least the increase by £1,000 of the level be implemented and who will make the final decision. at which income tax is paid by basic rate taxpayers, a What appeals system will be in place, for example? We Plaid Cymru policy at the general election. and disability groups support getting people into work. However, a further disappointment for my country in That is a good thing, but when such schemes are suggested, this Budget is that although confirmation was given of especially in such a manner and in such a Budget, there other transport schemes in England, the electrification is a wider concern that they are just a means for getting of the Great Western line was noticeable by its absence. people off benefits, rather than supporting them back I do not need to remind you, Mr Deputy Speaker, that into work. Wales ranks alongside Albania and Moldova at the I must also say that, in many parts of the UK, even if bottom of the electrified rail track league table. Without people are able to work, they cannot. Some parts of my a concrete timetable for either electrification of the country have very few jobs available, with between Great Western line or the creation of a high speed rail 10 and 15 registered jobseeker’s allowance claimants for link to south Wales and north Wales, we will languish each advertised job, and that is even before adding there much longer. people who are switched from disability benefits. It is Far from all of us being in this together, the emergency the same with parents of young children going back to Budget aimed its axe at the poorest and the most work. If the work is not available and we are forced into disadvantaged communities, while being more or less making savage cuts in the public sector, how are those “business as usual” for the economic elite. people to find work? However, there are some steps in the Budget that we Several hon. Members rose— welcome. There was a recognition that Wales and other parts of the UK have not shared in economic growth in Mr Deputy Speaker (Mr Nigel Evans): Order. As hon. the past and that a level playing field is required. Quite Members will have recognised, we have a 12-minute how Labour managed to create or accept a situation limit, and I am grateful to everybody for observing that. where only one private sector job was created in the I am sure that the House will also want to observe the north or midlands of England, but 10 were created in conventions associated with maiden speeches. London, is beyond me. That shows Labour’s failure of imagination in growing or developing a balanced economy. 2.16 pm However, the Conservatives’ proposal to allow a national Karen Bradley (Staffordshire Moorlands) (Con): It is insurance holiday is hardly likely to correct the years of an honour to address this House for the first time today. economic centralisation in London and the south-east It is an equal honour to do so as the Member for of England, or re-balance the economy geographically. Staffordshire Moorlands. I could easily use up all the A more far-reaching idea might be the regionalisation time available in praising my beautiful constituency, of corporation tax according to gross value added. and although I shall resist doing so, as there are pressing That would give the poorest nations and regions a matters facing the House, I make no apology for my competitive advantage. In west Wales and the valleys—the pride in representing the people of the Moorlands, areas that I represent—GVA is only 64% of the UK among whom I feel very much at home, as I represent average, so additional assistance to equalise that across the seat where I was born. the UK would be warmly welcomed. Another avenue I would like to start by paying tribute to my predecessor, might be the devolution of that tax, so that the Welsh Charlotte Atkins. She made many friends in the Government could make their own decisions, within constituency in her 13 years of representing the seat. EU regulations. Bolder moves to develop the Welsh There are many local causes that she made her own, economy are needed than those given in the Budget. including her advocacy for the charity Sailability and The route map for economic renewal, to be launched in her vocal campaign for the preservation and promotion a few weeks’ time by Welsh Deputy First Minister Ieuan of the canal network. I am privileged to take up the Wyn Jones, will provide more nuanced, Welsh solutions. baton in representing the Staffordshire Moorlands in Changes that bring about real-terms cuts in benefits this House. and public sector pay freezes punish those who had Right hon. and hon. Members may be aware of the nothing to do with the economic mess created by the unique character of the Moorlands. Staffordshire is a banks. The general public will contribute £13 billion large county with a great industrial history, but sometimes extra towards the deficit through the VAT hike. The we overlook its claim as home to much of the Peak bankers will pay a measly £2 billion a year through a district. The geography of Staffordshire Moorlands is levy, yet still see huge benefits in shifting their profits demonstrated not only by the name, but by the fact that from income tax to capital gains tax. The levy is not one third of the seat is made up of Peak national park only small; it is being introduced only gradually. The land. I see it as one of my responsibilities to encourage banks will not be squealing as a result of this Budget, as visitors to that beautiful place, which is something of an the cuts in corporation tax will compensate for the levy. undiscovered tourist gem. When hon. Members visit Considering that the Public and Commercial Services the Moorlands, they will find a wealth of natural attractions. Union estimates that there is £123 billion of uncollected The very many hills enjoyed by walkers provide striking tax, far from demonising vulnerable people struggling and inspiring scenery, including the famous Roaches. to get by, would it not be better if the Government While among the peaks, hon. Members can slake their targeted the super-rich for their tax avoidance and thirst in up to five of the 10 highest pubs in Britain. 477 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 478 Situation Situation Alongside the wild shapes and deep colours of the all other right hon. and hon. Members, to uphold the moors and the peaks, we should not forget, of course, supremacy of Parliament, because that is how their that much of the wonderful rural beauty is conserved interests will be represented most effectively. for our enjoyment largely thanks to the hard work and That brings me to the point I want to make about dedication of farmers. As a result, Staffordshire Moorlands today’s debate. We have the duty, as well as an opportunity is an important source of the nation’s food. We are now in this new Parliament, to hold the Executive to account, entering the summer country show season, when the but we must understand clearly what we mean by the quality and variety of livestock will be on prize-winning Executive. Today, it is not simply Cabinet Government, display. We all benefit from the maintenance of the land but the extension of Government through the civil that supports that vital industry. It will be one of my service and numerous Government agencies. We must aims to encourage the House to ensure that farming—not ensure that, as we vote for laws in this House, what we hidden by the catch-all “rural affairs”— is given due pass is actually implemented in practice. attention by the Government. My professional background is as a chartered accountant There are opportunities not only for walking, but for and chartered tax adviser—and I realise how many bird watching, including around Tittesworth reservoir, people would be disappointed if the word “tax” did not and for sailing on Rudyard lake, the place after which appear in this maiden speech. Over the years I have the famous Mr Kipling—not the one who makes cakes— advised businesses, large and small, on their tax affairs, was named. The lake is no mean feat of engineering, I have seen many instances of where the intention of the and was created at the end of the 18th century to feed law has been altered in practice, not by another Act of the canal network, another important part of our tourism Parliament or even by a judge, but by officials in industry. On top of those natural attractions are other Government Departments—in my particular case, by reasons to be confident about the future for the Moorlands. Her Majesty’s Revenue and Customs. That is a question The constituency is home to the most visited tourist not necessarily of unintended consequences, but of attraction outside London, Alton Towers. There is also deliberately altered consequences by officials. a thriving arts community, building on a long history Let me provide a concrete example of what I mean; it that includes William Morris, who lived and worked in relates directly to our debate on green energy and Leek for a time. Local painters such as David Hunt reducing carbon emissions. Under the Finance Act 1999, continue the tradition, capturing the essence of the the then Government encouraged people to cycle to area. work—which given the terrain in the Moorlands, would Of course, Staffordshire Moorlands is no simple rural keep us extra fit. Parliament determined that if businesses idyll; it is also home to towns with an industrial, textile provided cycles for their staff, that provision would be and mining history. Biddulph grew up on mining, but exempt from tax. There are several ways that a business has adapted and is now finding its way with more could do that—for example, by creating a pool of bikes modern industries. Leek prospered from the silk trade or by setting up a salary sacrifice scheme. In the latter and has long been the home to two large providers of case, a credit agreement between the employer and financial services, Leek United and Britannia. Contrary employee is required. to some reports, manufacturing in the UK is not finished. One of the principles in the legislation is that the Small firms in the Moorlands are making gearboxes, benefit should be “generally available”. However, HMRC seat belts, chemicals and agricultural equipment, to guidance drawn up in the normal way on the matter name just a few. results in a subtle, but different, position—that the I believe that the traditional character of our towns benefit must be “available to all”. Crucially, employees and villages and our farms has been strengthened by a under the age of 18 cannot enter into a credit agreement. feeling of togetherness—a feeling of the moorlands This means that most employers could not offer the being something unique—but we have to trade some of option to all employees; and, according to the Revenue, that positive feeling for our fellow moorlanders with the if it is not available to all, it cannot be available to any. difficulty of ease of access. There is, for example, neither A Department for Transport guideline produced 10 years a train station nor a dual carriageway in Staffordshire later attempted to clear up the anomaly, but why did we Moorlands. That lack of infrastructure might be one need guidelines from one Department to interpret guidelines problem for our businesses that seek to connect quickly from another when the intent of the law was quite clear? with others, but another, more severe, problem has been Why should HMRC apply the rules in this way? Did not one of neglect of places such as the Moorlands—neglect Parliament say that it wanted this tax exemption to be by the previous Administration who developed policy given to employees to encourage green transport? Who with an eye only on its metropolitan heartlands and gave the Revenue, a Government agency, the right to large companies. They were an Administration who re-interpret the law? That may seem a small instance, strangled small businesses with regulation and looked but it is indicative of the larger problem we face. There on in ignorance of anyone who works on the land or is a culture of control often masquerading as advice, cultivates livestock. and there is a tendency to complicate the law—and not However, I do not think that I have been elected by just in the area of tax. the people of Staffordshire Moorlands just to sing the Too many times my constituents have said to me that praises of the area. I consider that they have elected me they do not understand why MPs or councillors have to also to support the new Government in redressing the take legal advice or are following the official guidance balance in focus of our legislation. I welcome the intention rather than doing what the intent of the law says. to devolve powers to the right local level and recognise Parliament must be supreme, and not just in fiscal that the diversity in our country requires that we have matters. Ministers and Members of this House must be strong principles and that we apply them appropriately. confident that they are the masters of the rules, because I also believe that my constituents expect me, along with they are accountable to those who have sent them here. 479 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 480 Situation Situation [Karen Bradley] stimulus and was important for companies in my constituency and across the midlands. Quantitative easing If we pass fewer but simpler and clearer laws, there will was another positive step. During that period, the be less scope for confusion. Simplicity will help Parliament Conservative party largely got it wrong. It opposed a maintain that supremacy, while transparency will also number of those initiatives, and was particularly slow help to restore the reputation of politics. when it came to supporting bailing out the banks. In Our electors are more than capable of judging what large part, it got a number of those decisions wrong. we are doing—and seeing whether it is worth while—if The crucial question facing us now is the speed at they can see what it is, and clarity of principle might which we pay down the deficit that resulted from the even increase interest in the business of Parliament. global recession. We are all agreed on that. The risk is People will see this House as a place of serious and that if we take too drastic action, we could find ourselves relevant debate, and, dare I say it, simplicity might even pushed back into recession. On “Newsnight” last night, help us make efficiency savings. I therefore ask that in which I watched with my cup of tea, an economist, this Budget debate, and in the debates that follow on of Richard Koo of Nomura Investment in Japan, said that the Finance and other Bills, we ensure that what we there is a danger that the Budget will take too much intend the legislation to do is what officials implement cash out of the economy, and made the point that the and enforce. private sector is deleveraging and might also be tempted Before I sit down, Mr Deputy Speaker, I hope you to pay down debt. He made the point that, as a result of will indulge one final comment, as I want to thank the the Budget, we might find ourselves in a low-growth, voters of Staffordshire Moorlands for putting their low-inflation economic position, as experienced in Japan. trust in me. I will endeavour to work hard for all of At such times, he said, a portion of financial stimulus them and represent their interests in this House. needs to be sustained, and that should have happened in Japan in the late 1990s. What happened in Japan was that it bumped along the bottom in economic growth. 2.25 pm That is a worry. David Wright (Telford) (Lab): I congratulate the hon. The Budget envisages a massive shift to private sector Member for Staffordshire Moorlands (Karen Bradley) investment and exports over the next three years. We on a genuinely excellent maiden speech. She mentioned should all support that and hope that such a strategy 10 pubs that were among some of the highest in Britain. succeeds, but such a significant rise in private sector My love of a pint of beer will ensure that I visit her investment and exports over a three-year period is a tall constituency very soon, perhaps over the summer holidays, order, especially if, as the Prime Minister said proudly and avail myself of a pint of bitter—or maybe even from the Dispatch Box the other day, economies across two—in each one of them. As a fellow midlands MP, it Europe are contracting public spending. Several European is a great pleasure for me to welcome her to the House. I Governments have withdrawn stimulus from the economy, was the Government Whip for her predecessor, Charlotte which is a concern in relation to demand for exports Atkins, to whom she paid worthy tribute. Perhaps I can over the coming three to four years. That is why the encourage the hon. Lady to join us in the Lobbies next question of the speed of cuts is crucial. week, as I used to encourage her predecessor to do, but The Canadian deficit reduction model, which is often on the basis of her excellent speech, I think I might have cited by commentators in relation to the Budget, was some problems achieving that. pursued at a time of growth in the economy. I want to I want to speak about some general issues surrounding see more growth and I want to see the country succeed, the Budget. First, I was struck during the Budget debate as we all should, but my concern is that growth is fragile over the past couple of days about how the Budget here. Businesses are concerned about the impact of cuts failed to mention the scale of the global downturn over on levels of demand in the economy. The Shropshire the past three or four years. Anyone listening to the Star, my local paper, did an excellent piece on the Chancellor would not have believed that the world Budget—that will get me a good slot in the editorial economy had gone through one of the greatest tonight—and quoted Geoff Parkes, who runs a company downturns—indeed, the greatest downturn—since the in Telford, ASC Finance For Business. I do not know second world war. This omission amounts to a significant him or pray him in aid of the Labour party’s position, rewriting of history. but he had this to say about the Budget: I recall visiting the United States when the housing “The big unknown is the effect of public sector cuts, reduction crisis, prompted by the mis-selling of mortgages in the in tax credits, freezing child benefit and critically the rise in VAT US, was just beginning to take hold. There was real fear to 20% from January 2011”. on Wall street about the value and confidence of what He said that this was then triple A-rated debt. It sent a shockwave around “will have an impact on demand in the economy—this means the world, yet we heard no mention of that in what the firms will have to compete harder for their share of the recovery”. Chancellor had to say, which I found quite remarkable. He is right: companies will have to compete harder for I also found it remarkable that the Chancellor had their share of the recovery. My concern is that we are nothing to say about the decisions taken by the Labour taking public spending out of the economy too quickly. Government to support the economy at the height of We need to cushion the impact of the cuts over the next the recession. I still believe that those decisions were the two to three years; otherwise, we might find ourselves in right ones to take, supporting the banks during the a double-dip recession. crisis and cutting VAT—perhaps the Liberal Democrats My concern about the Budget is the ideological drive would like to reflect on that when it comes to the vote of the Conservative party to reduce the role of the state. next week—to provide a stimulus to the economy. The This is the kind of Budget that the Conservative party car scrappage scheme was a particularly successful economic would have introduced whether we had these economic 481 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 482 Situation Situation problems or not. The Conservatives have a big society 2.37 pm view about the country based on a US small state theme. The headline from the Budget is, “Pain now, Mr Mark Field (Cities of London and Westminster) more pain later”. The massive spending cuts are pushed (Con): I congratulate my hon. Friend the Member for away to the autumn, when they can be announced by Staffordshire Moorlands (Karen Bradley) on her charming the Chief Secretary to the Treasury, the Chancellor’s maiden speech. She spoke with great passion about her personal human shield. I would not be surprised if the constituency, although I felt slightly guilty when she Prime Minister and Chancellor were well away—probably lamented the fact that there were no railway stations in out of the country—when the Chief Secretary stands at it. There are 32 tube stations in my constituency, along the Dispatch Box to announce the savage cuts later in with no fewer than three of the four railway stations on the year. In the meantime, the Budget can be presented the Monopoly board. Perhaps we can swap a few between as half the story of what needs to happen in our Cities of London and Westminster and Staffordshire economy. Moorlands before the world is too much older. The Institute for Fiscal Studies has said clearly that if The first Budget of any new Administration is always some Departments are to be protected, with perhaps a momentous event. It inevitably sets the seal for much 10% cuts, others will have to bear cuts of about a third. of what will follow economically. This is a groundbreaking That is an enormous amount to come out of the budget and very brave Budget, which has expressly changed the in the next two to three years. I am extremely concerned terms of trade. In his speech, the Chancellor made a about the impact that will have on police services in robust case for the nation to have a future that would be constituencies such as mine, where we will see fewer underwritten by the success of business and enterprise. police officers on the street, fewer community support It is only the third time in more than three decades officers and fewer front-line services. Telford is heavily that such a Budget has been delivered. In the infinitely reliant on civil service jobs: defence jobs, Department more clement economic weather of 1997, the then for Work and Pensions jobs, and jobs that are reliant on Chancellor, the right hon. Member for Kirkcaldy and work from the Treasury. I fear that there will be a Cowdenbeath (Mr Brown), while ostensibly sticking to significant reduction in the number of civil service jobs his predecessor’s spending plans, announced fatefully in Telford, which will have a consequential impact on his intention to restrict private pension tax breaks. At a our economy. I want us to protect those jobs in Telford, stroke, the culture of personal savings was undermined, and I will fight to protect them. It is important for us to and a distinct shift from individual responsibility to protect our local economy—an economy that relies so collective state provision was flagged up. It has, perhaps, much on public sector jobs. taken a full 13 years for us to appreciate the true I was disappointed that the Building Schools for the implications of what many then regarded as a technical Future programme was not mentioned in the Budget. A manoeuvre born largely from a need to secure an easily significant amount—more than £200 million—has been available pool of cash to spend on pet projects, a state invested in the renewal of our schools in Telford, but of affairs that was necessitated by the making of an there is currently no security for head teachers, pupils or orthodox manifesto pledge. parents with regard to the future of those schools. In the emergency Budget of 1979, the incoming Secondary schools such as Wrockwardine Wood arts Conservative Government signalled a desire to unleash college, the Phoenix school, Lord Silkin school and the power of the free market from the state’s grip, and Sutherland Business and Enterprise college are waiting to promote free trade after a characteristic spell of to see whether the Government will proceed with Building Labour mismanagement. Indeed, in the run-up to the Schools for the Future. I shall campaign with local general election this year, it became the pastime of communities to ensure that we complete that programme—a many political commentators to draw comparisons between programme that we initiated as a Labour Government, that momentous 1979 election and the political and and of which I am incredibly proud. economic landscape that faces us today. Yet, of course, I believe that the Budget will have a disproportionate that simplistic analysis ignored the significant differences impact on the poorest people in the country. The Institute between the two episodes. When the Conservative for Fiscal Studies stated clearly today that it believed Government took control of the public purse in the that it would have a greater impact on the lower paid final year of the 1970s, our nation had been subject to and the poorest than on anyone else. As our discussion monetarist policies for two and half years courtesy of over the past couple of hours has made plain, Labour’s the IMF. In essence the very toughest decisions on last Budget was progressive and this Budget from the public spending had already been made at that time. Conservatives is regressive. That has been the focus of the debate. In contrast, this year, while there was a superficial The core tax rise in this Budget is, of course, the acceptance that the best of economic times was over, increase in VAT.Before the election, both the Conservatives the sheer gravity of our economic problems has been and the Liberal Democrats said that they had no plans too lightly skated over during the campaign skirmishes. to introduce increases in VAT.This VAT rise is a bombshell. Indeed, it served the expedient interests of all three We talked about it during the election in Telford, where main political parties to confine any economic discussion it will have a significant impact on families. I shall be in to a somewhat fatuous battle over public spending cuts the Lobby next week opposing it. Indeed, I shall be in of £6 billion; a sum of money that we borrow, not the Lobby opposing the entire Budget package, because spend, every fortnight. it is damaging to communities such as Telford and The public were willing to embrace change in 1979. damaging to the country. We should oppose it because Today, I fear that the electorate have been less willing to it is non-progressive—in fact, it is regressive—and I accept the seriousness of the national economic situation. look forward to Liberal Democrat Members joining us The breathless relentless media coverage over the past in the Lobby to oppose it next week. two years charting stock market swings, house price 483 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 484 Situation Situation [Mr Mark Field] It was against that background of public pressure and economic misery that the then Prime Minister crashes and global turbulence has convinced many that Lloyd George appointed Sir Eric Geddes to chair an the worst is already behind us when, really, the reckoning independent review of Government spending in the has yet to begin. bitter year of 1921, the aim being drastically to cut I have felt that the past couple of years have been spending by eliminating the waste that had been identified. uncompromisingly ugly—we have seen that in many of The Geddes committee was to become the most thorough the speeches from Opposition Members today—for those and rigorous outside investigation of public expenditure of us who support capitalism, free markets and open ever conducted in Britain. It was also, of course, highly trade. Once again I am delighted that this Budget starts controversial. Its membership consisted of only a single to make the case for empowering people, the smaller elected MP and five unelected business leaders, and state and individual responsibility. while it was lauded by the world of commerce and Conservatives and taxpayers, it was attacked by the The election is now of course behind us. I remain fledgling Labour party and the trade unions. concerned that our coalition Government do in all fairness lack the critical and explicit mandate to make In the end, Geddes was able to slice some £54 million some of the very tough economic decisions that are off Government expenditure. That seems an almost required as a matter of urgency to get the public finances risibly small sum today, but in those days it amounted back on track, for this Parliament—indeed probably for to a 10% reduction. We should soberly remember that, the entire decade—stands to be dominated domestically once ring-fencing is accounted for, departmental cuts of by the need to take a firm grip of the public finances. about 25% are likely to be required next year. This year’s public budget deficit of some £155 billion Back in the 1920s, a clear message was sent to Ministers, represents 11 per cent. of GDP and means that we Whitehall and the general public that spending in any continue to borrow fully £1 in every £4 that we spend. form would be very closely scrutinised like never before. This colossal living beyond our means is made up of The committee’s work marked a crucial turning point in consumption rather than investment in any meaningful rebalancing the public finances from a distorted war sense of the word. Correcting that imbalance will necessitate basis to a peacetime basis. It is a lesson we need to learn diminished living standards for the generation of taxpayers in the months ahead as we go about the work of yet to enter the workplace. In a large measure, that ensuring that these departmental changes happen. means that we have to take an axe to public spending, The committee’s success in rapidly achieving its goal and that has of course been a remarkably rare event. was due to a number of factors: it had professional and I am delighted by the generally positive media response respected committee members; it enjoyed unstinting to the Budget, but I should point out to my hon. political support; it worked to a very swift timetable, Friends that the pain of the tax rises accounts for only which I think we will have to do again this time; there 23 per cent. of the overall measures. Details of the was widespread public support for its aims; and it was adjustments to public expenditure will be hammered willing to compromise on proposals that proved to be home in the months to come and will become fully politically unfeasible—I think we will find ourselves in apparent only in 2011-12. That is when the real logistic that situation again in the months to come. The experience and political tests will come. of nine decades also has demonstrated that while securing There is much to learn from history about those very public expenditure cuts is very politically difficult, it is few previous episodes when we have needed to make a far from an impossible task, as is often claimed. We substantial cut in public spending. The single most undoubtedly need to try to achieve great public support. significant period of efficiencies and reductions in public The experience of the 1920s showed that while voters spending came in the aftermath of the first world war might agree in general with cuts, they almost never and, perhaps significantly, was also in a time of peacetime agree with specific cuts that directly affect them. To put coalition between the Liberals and Conservatives under it simply, we need to ensure that the cuts are fair, Lloyd George. The wartime economy at that juncture focused and effective. was characterised by huge unprecedented state control, History also provides important perspectives and so much so that when the conflict came to an end, there pointers to the future. Wisely, the coalition Government was a massive upswing in the economy as pent-up have an even more recent precedent in mind. The hon. demand, wartime savings and the removal of wartime Member for Telford (David Wright) rightly pointed out controls caused a boom. However, the first peacetime that the Canadian model of deficit reduction in the first Budget in 1919 actually led to a budget deficit of 6 per half of the 1990s took place in an era of great global cent. of GDP after the then Chancellor concentrated growth and plenty. We should not underestimate how on building homes fit for heroes and embarking on an much easier that made its very painful readjustments, ambitious social programme rather than balancing books. under which a quarter of public sector employees in the Hot on the heels of that boom, however, was a grim country lost their jobs. By contrast, today’s reductions slump. Having been one of the world’s largest overseas in the head count will, to an extent, be tomorrow’s investors before the first world war, Britain became one unemployment rise. of the biggest debtors with interest payments taking up In Canada in the 1990s, the Government had already some 40 per cent. of all Government expenditure. The levelled with the voters over a period of time. They then value of the pound was depressed, yet the anticipated proceeded to provide very clear evidence, on a year-by-year export boom failed to materialise. Even preceding the basis, of the gains as expenditure was reduced. They slump there had been a public outcry at the Government’s also made the moral case that the living standards of extravagance. As the economic gloom descended and future generations of taxpayers should not be diminished tax increased, the outcry against Government waste to pick up the tab for the consumption and debts of became a thundering clamour. current taxpayers. That is absolutely crucial. 485 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 486 Situation Situation This has been an extremely brave Budget from the given the roles of prisoners and jailers. Very quickly, Chancellor. The fact is that despite the—at times two thirds of the jailers became very sadistic, but the contrived—anger from Opposition Members, those who peculiar thing was that the prisoners, although they are most likely to suffer are middle England voters, who were free to leave at any time, decided to stay and take are the very people the Conservative party has relied the sadistic treatment being dished out. I think that upon for electoral support. The Budget’s promise to be something is going on here. The Liberal Democrats tough but fair is largely borne out, especially in its who have taken the thirty pieces of silver and the Toyota protection for the poorest and most vulnerable in our Prius cars are clearly taking on the role of the sadistic society. Indeed, I have been calling for some years now jailers who have adopted the policies in the Budget. The for the removal of the very lowest earners from income Liberal Democrats who are left—I do not know what tax altogether, and I am very pleased about the steps the collective term for them should be, but perhaps it that have been taken in that regard. could be dupes, as that is a term that someone has used I sound only two notes of caution. First, I believe recently—are unable to free themselves. They have that the Office for Budget Responsibility unemployment internalised their grief and they are going along for the projections have been over-optimistic. Indeed, such has rollercoaster ride on the track that has been laid by the been the unreliability of economic forecasting over Conservatives in this Budget; they are hanging on for a recent years, that I think that unemployment will not white-knuckle ride. peak this year, but that it will be higher in both 2011 There are endless quotes from the general election in and 2012. Secondly, I fear that there is a real risk of which Liberals warned us about the Conservatives and serious sovereign default in the eurozone, as has been what they would do in government, so there is no discussed. mandate for the Liberal Democrats to support the I do, in part, accept the Opposition’s view that there Budget. The majority of people who voted at the last is a significant element of risk in this Budget, with general election voted for the parties that opposed the many of the toughest measures coming in next year sort of cuts that are in the Budget. when the coldest winds may well be sweeping across the The fact that we need to address the deficit is without continent. However, for the sake of this nation’s economic doubt. If Labour were in government we would be welfare, I believe this calculated judgment is well worth cutting public services, and people would feel the taking. Given that denial, debt and delay are part of the consequences of those cuts; there is no doubt about problem, I cannot see that they will be the solution to that. However, the size and scale of what we have got this crisis. from the coalition Government is beyond anything that anyone has attempted in the UK before. In one Budget, they are cutting back the size of the state, over six years, 2.49 pm beyond what it was when Labour came into power Clive Efford (Eltham) (Lab): This is my first speech in 13 years ago. Under the guise of reducing the deficit the new Parliament, so let me take this opportunity to they have set about reducing the size of the state, with say what a pleasure it is to see you in your position, an enthusiasm that Margaret Thatcher could only look Mr Deputy Speaker. on in wonder. One of the first things that we need to say about the Budget is that it is quite clear that the underlying Kwasi Kwarteng: The hon. Gentleman mentions the narrative is an assault on the size of the state. It is not deficit; who does he think was responsible for it? merely an attempt to deal with the deficit following what has been described as a profligate former Labour Clive Efford: The hon. Gentleman will probably know Government. It is an ideological assault on the state the history of this matter. Until November 2008 there based on the belief that reducing the size of the public was an agreement in this House about how to deal with sector will create space and that the private sector will the deficit. The Conservatives supported what the inevitably grow and fill the vacuum. Without question, Government of the time were doing, so I suggest that he this Budget is—apart, perhaps from the absence of the go back and look at the facts of what was going on. NHS from the cuts—the Budget that Margaret Thatcher The Liberal Democrats conveniently forget the statements always wanted to introduce. But who would have thought that they made expressing their fear of what the Tories it would be the Liberal Democrats who would give the would do. I remind the House of one that was made at Conservatives the power to wield the axe? the start of the general election campaign. In an interview The Deputy Prime Minister sat through the Budget with The Observer, the leader of the Liberal Democrats, nodding in support of every swing. We all remember the the right hon. Member for Sheffield, Hallam (Mr Clegg), warnings that he gave during the election about what said this about a new Conservative Government: the Conservatives would do if they got into power—the “They then turn around in the next week or two and say we’re VAT bombshell—but what changed? I think he is suffering going to chuck up VAT to 20%, we’re going to start cutting from Stockholm syndrome, which is what happens when teachers, cutting police and the wage bill in the public sector. I a hostage becomes emotionally attached to the people think if you’re not careful in that situation…you’d get Greek-style who are holding him captive. It is quite clear from his unrest…be careful for what you wish for.” response to the Budget that there is something going I think that those are very wise words. on. He has now collaborated in the biggest robbery The Government have also prayed in aid what has since Patty Hearst just went to the bank. gone on in Greece, Sweden and Canada, but my right Perhaps I am being unfair. It could be that the hon. Friend the Member for Doncaster North (Edward Liberal Democrats just cannot help themselves. I am Miliband) pointed out at the Dispatch Box that reminded of an experiment at Stanford university—the comparisons with Greece are utterly ridiculous. In Sweden Stanford prison experiment—in which students were they cut back public expenditure by 20% over 15 years, 487 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 488 Situation Situation [Clive Efford] The public sector will be hit in three ways, with a triple whammy—a freeze on council tax, a freeze on an approach that bears no comparison with the scale of pay, and a squeeze on workers’ pensions. The claim that what is being attempted here. It is true that the Canadian none of those would be necessary if the previous Government carried out a consultation exercise, but Government had not left the country in the state that that was confined to short-term measures to deal with the present Government say that they did just does not the deficit, and the intention was always that there stand up to scrutiny. would be a return to expenditure. In this Budget we are being asked to vote for taking What we are seeing is a permanent cut-back of the away £1.8 billion from housing benefit, £1.4 million state, and a withdrawal from expenditure for ever. That from disability benefits, £11 billion from the welfare is what the people of this country are being asked to state overall—and £2 billion from the banks. The participate in through this consultation. Government say that they oppose nationalisation, but The hon. Member for St Ives (Andrew George) is the they have certainly nationalised the cost of the banking only Liberal Democrat in the Chamber. I am not surprised failure, and it is the poorest people in our constituencies that there no others participating in this Budget debate. who will pay the price. I have quoted the party leader as saying The figures show that £1 in every £7 spent by the “be careful what you wish for”, poorest 10% in our communities goes on VAT, but that drops to £1 in every £25 for the richest 10%. The IFS and I hope that the hon. Gentleman will remind his has confirmed that Labour’s plans would hardly have friends of that, especially the ones who cheered this touched the poorest 10% at all, but this Budget will Thatcherite Budget. Supporting this Budget is a reduce their income by 2.5%. Labour’s proposals would proclamation of an intent to reduce the size of the have reduced the position of the richest 10% by 7%, but public sector in perpetuity. Liberal Democrat Members the Budget adds only a further 0.6% of that. cannot support reducing the size of the state and say with any credibility that the axe will not swing against Guy Opperman (Hexham) (Con): Will the hon. the NHS in the long term. This is an ideological change, Gentleman give way? and they cannot escape that fact. Clive Efford: No. I have given way twice, and other Andrew George (St Ives) (LD): Will the hon. Gentleman Members wish to speak. give way? We can see who is paying the price for the Budget. The Government say that we are all in this together, but Clive Efford: I welcome the hon. Gentleman getting some of us are in it more than others, and the poorest to his feet. Perhaps he will explain whether he supports are in it up to their ears. the state being withdrawn in this way. There is no mandate for this Tory Budget. Despite all the coverage that we have read about it, no one has said, Andrew George: I am grateful to the hon. Gentleman “Thank God the Liberal Democrats were there to hold for giving way. I certainly appreciate the attention that back the nasty Tories.” Everyone says that it is a he is giving to my party, although he fails to recognise Conservative Budget—the Budget that the Conservatives that this is a coalition Government. There will be elements would have introduced whether or not they had the rag, of both the Budget and the coalition agreement about tag and bobtail of the Liberal Democrats tagging along which the Conservatives are especially enthusiastic, and behind them. This assault on our public services is elements about which the Liberal Democrats are especially founded on the misguided belief that as the pubic sector keen. The measures in the Budget include a raising of contracts, the private sector will expand and provide the personal tax allowance, a significant improvement new jobs. in annual increases in pensions, increases in capital gains tax and the introduction of levies on banks—all There is no intention of returning investment to the things that Labour failed to do at all. public sector. The dogma that drives the cuts is the same that drove the Tories to attempt to destroy the NHS Clive Efford: If that did not sound like an excuse, I do when they were last in power. Anyone who votes for not know what would. A person on a low income who the Budget is signing up to a Thatcherite philosophy of receives benefits or child tax credits is going to see those slashing the public sector and paying no heed to the benefits reduced, so raising the personal tax allowance consequences for the most vulnerable people in our will make very little difference to household income. communities. Never again will the Liberal Democrats be able to claim that they are the party that stands up for the underprivileged and a party that is in favour of Andrew George: What about the 10p rate? intervention. This is a Thatcherite Budget and anyone who votes for it will be a Thatcherite: Members Clive Efford: I assume that the hon. Gentleman has on the Government side of the House are all Thatcherites applied to speak in the debate, but it is clear that I have now. touched a raw nerve with him. It is as sure as night follows day that those who 3.1 pm support this Budget will want to cut the NHS next. Attacks on what has been describe as an “over-bloated” Mr Matthew Offord (Hendon) (Con): I pay tribute public sector are attempts to soften the public up in to the speech made by my hon. Friend the Member preparation for an unprecedented attack on public sector for Staffordshire Moorlands (Karen Bradley). I know workers and the people who rely on the services that her seat very well and I am tremendously proud that they provide. she is in the House. It was interesting to see the 489 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 490 Situation Situation right hon. Member for Kirkcaldy and Cowdenbeath in one of the most prosperous cities in the western (Mr Brown) in the Chamber earlier, but Conservative world, but there remain yawning chasms between the Members would have liked him to stay for the whole of aspirations of the people I represent. today’s debate. In that respect, my constituency is probably a microcosm It is a great honour to speak in my first debate as the of London. In turn, London represents part of the newly elected Member of Parliament for Hendon. affluent south that stands in total contrast to the other Mr Speaker will know my seat well. He grew up in the places where I have lived, such as Barnsley, Carlisle, neighbouring constituency, so he will know of many of Bodmin and Leek. The difference for those places is in my constituency’s attributes. Hendon is famous for how they are viewed by us, as law-makers. Without many reasons, including the Metropolitan police training doubt there is an urban-rural dichotomy in this country, college, the Medical Research Institute, the British Library which even today is reflected in our politics. That was newspaper depositary, Brent Cross shopping centre and reinforced by the previous Government when they the RAF museum, to name but a few. Many people are established the Urban Task Force and the Rural Task migrating to Hendon for some of its other attractions, Force. However, when more than 80% of us live in such as our lower than average crime rate, our good areas, such as my constituency, that can be classified as schools and our green spaces, all of which are within suburban, it is anathema that the suburbs play a secondary easy access of central London, so I urge hon. Members role in regeneration and urban policy. to travel on Thameslink or the Northern line to come Given the importance of cities to Britain’s future and visit. I am sure that many Members, certainly those economic prosperity, I urge the Government to recognise representing northern constituencies, have already visited that suburban constituencies must play a key role in Hendon, especially if they travel back to their constituencies their policies for urban regeneration. Many commentators at the end of the week by car along the A5, A1, A406 or share my view, recognising that suburbs are the even the M1. forgotten dimension in our urban policies. There are My constituency is also known for many of its former many initiatives that could overcome that issue. In the inhabitants or those who were schooled in the area, past, the former Member for Sedgefield spoke about including Oliver Postgate, the creator of Bagpuss and “Education, education, education”, but I think that the Clangers; Garbo, the Spanish spy who fed the that was too narrow a focus. I would prefer us to instil Germans false intelligence about the D-day landings in our people a sense of “Aspiration, aspiration, aspiration”, 66 years ago; William Wilberforce, a former Member of which will continue with them throughout their adult Parliament and slave trade abolitionist; and Sir Stamford lives. But we cannot do that on a national scale. We Raffles, the founder of Singapore. More recent Hendon need to allow local people to implement the right social characters include Henry Cooper, Denis Compton, Joe and economic priorities for themselves on a suburban Beevers and even Lord Mandelson, who attended school scale. in the area. That shows us that my constituency has When I was deputy leader of Barnet council, I was attracted people who have contributed to a range of proud to introduce a scheme whereby we employed activities in our society and national life. It continues to our looked-after children, in the same way that any do so, and I hope, as its new MP, that I will make my parent would employ one of their children in the family mark for the people of my constituency. business. It was not a guarantee of employment, but an I pay tribute to the work of my predecessor, Andrew opportunity of aspiration that could be taken up—one Dismore. He worked hard on many issues, and I intend which, I am pleased to say, several young people did to continue some of that work for different sections of take up and so improved their life chances by entering our community. He set the bar high, but I intend to the local economy.Barnet council also led in the promotion exceed it. He also prided himself on having made the of what became known as the Barnet bond—a financial longest speech in the Chamber in the past decade, but scheme to raise more than £300 million to be invested in hon. Members will be pleased to hear that I do not wish schools, transport and other local services that will be to emulate that. needed to provide the infrastructure to cope with the The constituency of Hendon is marked by extreme housing growth expected over the next decade in our religious and cultural diversity, which is mirrored suburban constituency. If Barnet does not achieve that—if economically in the contrast between the affluent Hale, it does not raise the aspirations of the area and the Hendon, Mill Hill and Edgware wards and the housing people who live within it—community life will be on a estates of Burnt Oak and Grahame Park, the Perryfields downward trajectory. estate and Stonegrove. I am pleased to confirm, however, Today, I have heard some Labour Members say that that the London borough of Barnet has already started Government Members dislike the public sector. I assure work to regenerate the Stonegrove and Grahame Park them that that is not the case. In fact, we believe that the estates. public sector has a part to play but that there are others One of the most tragic comments I heard during my who are able to contribute better than the public sector. campaign to be elected to Parliament came from a Unlike the previous Government, we do not believe that mother on the Grahame Park estate, who said that too throwing money at problems is the way to create a many foreigners were coming into this country and better economy and better living conditions for our taking social housing away, and asked how her children people. We believe that there are many other could have any chance of taking over the tenancy of organisations—particularly in the third sector—that their home. That illustrates the lack of aspiration that are better at deciding what local people’s objectives are many people have today. I contrast her attitude with and introducing action to achieve them. that of parents in other parts of the constituency who My constituency has many organisations that provide spoke about their children going to university, buying benefits for civic and local life—my Seahorse sailing their first home and eventually getting married. We live club on the Welsh harp; the Community Security Trust, 491 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 492 Situation Situation [Mr Matthew Offord] enriched by many excellent qualities, among which are their good sense and sound judgment. I am delighted which plays a great role in our Jewish community; the that they employ those when they vote Labour, which is Mill Hill Preservation Society and the Larches Trust, to whyIamhere. name but a few. Particularly when we talk about green To that end, I have the benefit in my constituency of energy and climate change, we must create the aspiration the hard work and tireless commitment of many excellent for those organisations and new ones to emerge and Labour councillors, led by the leader of the Labour allow them to play their part. We must not let the group, Councillor Steve Brady, and I thank them for budget deficit become an excuse for inertia. their service. I can also tell the House that in the past Under the previous Government there was an increase few days we have had a new councillor on the Labour in violent crime. More than 40 years ago Robert Kennedy benches in the chamber in Hull—Councillor Maureen told an audience that there is another kind of violence Bristow. She crossed the floor from the Lib-Dems because, besides physical violence—one that is slower, but just as in her words, she did not come into politics to implement deadly and just as destructive—and that is the violence Tory policy that hit the hard-working and the poorest of institutions, particularly when they become indifferent, people the hardest. That sentiment is shared by people show inaction and produce slow decay. That is, in in Hull and throughout the country who have previously essence, a neglect of aspirations by politicians and voted Lib-Dem but will never make that mistake again. policy makers. Because we do not have any money, we I am often reminded that I have very big boots to fill, must look at alternative ways of reducing our deficit and I acknowledge that in paying tribute to my predecessor, and improving our country. John Prescott. It was 40 years ago on the 18th of this Because of the massive economic deficit we must win month that John was elected to the House. In that time the argument, particularly Conservative Members and he has been credited with many achievements, perhaps with our colleagues the Liberal Democrats, that it is the too many to mention in the short time that I am opportunity of aspiration that will create private sector permitted to speak. Throughout his time here, he was employment and pull us out of the state that we are in. blessed with the loyalty of his agent, Harry Woodford, It will not happen as a result of some of the objectives who still attends Labour party meetings at the age proposed by Opposition Members. We need to recognise of 93. I know that I can rely on the same loyalty from that different communities work in different ways, be my agent, Howard Flitton. He is much younger than they rural, urban or suburban, and we have to give our Harry, but, if I stay in the House as long as John, by constituents the ways and means to address the problems then he will be about the same age. that they face and to introduce the right conditions for While John was a Member, some say that he delivered themselves. As the Member of Parliament for Hendon, many knockout blows. He was very faithful to his I intend to play my part to achieve that. constituents and to the Labour party, and I hope to Finally, I wish to thank the people of Hendon who emulate that. Hon. Members might recall that in the gave me, and the Conservative party, their respect and 2001 general election, while on the campaign trail, John trust in allowing me to come to this place. was involved in an incident in Wales. When his then boss, Tony Blair, asked him, “John, for heaven’s sake, 3.11 pm what were you doing?” I am told that John replied, “Well you told me to go out there and connect with the Karl Turner (Kingston upon Hull East) (Lab): I start electorate, so don’t blame me now.” He was straight by welcoming you, Mr. Deputy Speaker, to your position. talking, and he had a very good left jab. One of the first tasks that I undertook when I came into John Prescott has a lot to be proud of. He rose from this place was to put my cross against your name, so being a seafaring steward to the dizzy heights of Deputy welcome. I also congratulate hon. Members on their Prime Minister, following the Labour party’s magnificent maiden speeches. Members will share with me the sense election success in 1997. I feel compelled to mention of privilege and much pride that comes with entering that, unlike the incumbent Deputy Prime Minister, this magnificent Chamber. That pride brings with it a John gained his place in government through the electorate real sense of responsibility, which I will keep to the and the then leader of his own party. It was not gained forefront of my mind throughout. through the desire for power, whereby 22 Government However, the happiness of the occasion is tinged for jobs, with gold-plated pensions, have been traded for me with some sadness and real fear: sadness because I many thousands of public sector jobs—a desire for do not take my seat on the Government Benches where power that I predict will not come without a great cost the important decisions that affect my constituents will to the right hon. Member for Sheffield, Hallam (Mr Clegg) be made, and fear for the constituents who I represent, and his party. and worry that the choices already made by the coalition My predecessor is very different from the right hon. will severely damage the good that has come from Gentleman, but there are some comparisons. I say that 13 years of a Labour Government. Those choices are with some apprehension, because I am clearly at risk of driven by pure ideology, with consequences that are offending my predecessor, and I do not suggest for even likely to be far-reaching and long-lasting. My constituency a second that John has, or will ever, utter the words, “I has benefited tremendously from a Labour Government, agree with Nick,” but interestingly enough at the general and I fear the clock being turned back to Tory time. election he and the right hon. Gentleman asked the Hull East, or East Hull, as it is known to those of us electorate to vote for their respective parties in order to who were born and bred there, is a fantastic place. Its stop the Tories ruining the economic recovery that was greatest asset is its people. East Hull folk have a reputation set in train by the previous Labour Government. Like for straight talking, and I hope that I bring with me to the electorate, I have no recollection of the current the House that special quality. East Hull people are Deputy Prime Minister saying, “I agree with Dave.” 493 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 494 Situation Situation While making comparisons, however, I seem to share about it—we did mend the roof when the sun was the Prime Minister’s sense of humour, because like him, shining. The vast majority of those policies were opposed I and many other Opposition Members have a new by the new Government; some have already gone in the favourite joke. The former Deputy Prime Minister—the short time that they have held office. one whom the electorate wanted—will soon continue in I vow to hold this Government to account while I sit the other place with his tireless commitment to his on this side of the Chamber, but in doing so I remember interests, and I wish him well there. the responsibility that I have to my constituents. If the Indeed, I do have big boots to fill. The last Hull-born Con-Dem coalition gets it right, I will support it, but MP to represent the area was the great William Wilberforce, when the policy is wrong, when it is for ideological who began his political career in 1780 when he became reasons, and when it adversely affects my constituents, I the independent MP for Yorkshire, which at the time shall challenge it at each and every opportunity. covered some parts of my constituency. He was a truly honourable man, who led the parliamentary campaign against the British slave trade, and after some 26 years 3.21 pm the Slave Trade Act 1807 was passed. When Wilberforce Angie Bray (Ealing Central and Acton) (Con): Let left the House in 1826, he continued his campaign, and me start by congratulating the hon. Member for Kingston just three years before he died he learned of the passing upon Hull East (Karl Turner) and my hon. Friends the of the Slavery Abolition Act 1833. Members for Staffordshire Moorlands (Karen Bradley) East Hull has a record of electing Members with and for Hendon (Mr Offord) on their excellent maiden seagoing experience. In 1945, the area elected Harry speeches. I am sure that they will all make great Pursey, a former naval commander, and of course my contributions to this House over the years to come. predecessor was a merchant seaman. Although I have I cannot imagine that many of us who sat in the no seafaring experience, I am the son of a former Chamber on Tuesday to hear the Chancellor’s emergency seaman, so to that end the tradition continues. Budget statement will have found it exactly an enjoyable I am very proud of my roots. I was educated in a state experience. Theatrical, yes; dramatic, yes; enjoyable, no. comprehensive, and my school suffered from some shameful It was a bleak Budget statement drawn from a grim under-investment during the previous, 18-year-long Tory economic landscape bequeathed to us by the previous Government. I left school without having achieved much Labour Administration. We will all now be thinking academic success, but after the first term of the previous about getting back to our constituencies this weekend Labour Government and their agenda for lifelong learning and discussing with our constituents how we can face I had the opportunity and confidence to study law at these tough measures together. Yet I suspect, judging by the excellent university of Hull. I was eventually called the Leader of the Opposition’s response, that many of to the Bar in 2005. those on the Labour Benches will be blaming everyone Hull has many things to be proud of, not least the and everything but themselves for the situation in which excellent quality of its rugby league. In the east we have we find ourselves. That is neither wise nor credible. I Hull Kingston Rovers and in the west Hull FC, both of hope that at least some of them will recognise that which rival each other in the super league. We also have under their governance this country was living way Hull City football club. Not unlike another team that beyond its means for far too long. As the well-worn but are extremely close to my heart, we suffered last season true saying goes, all good things come to an end—only what I hope turns out to be a short-lived demotion. The on this occasion, not just an end, but a juddering halt team were led by, I often argued, an excellent leader in that has shaken the whole country violently. Mr Brown—that is, Phil Brown. I would like to put on record how much I abhor the Despite the coalition Government’s attempts to convince manner in which the previous Labour Government, in each other and the wider electorate that we got it their last few months, went round dangling all sorts of wrong, Labour Members sit on this side of the House promises—this project, that programme—to dazzle proudly and with our heads held high. We have an the electorate, all of them knowingly unfunded, so excellent record to defend. I am particularly proud of that they were inevitably withdrawn when reality the national minimum wage; our investment in the kicked in with the new Government. Another Labour NHS, with 85,000 more nurses and 32,000 more doctors, Government—heaven forfend—would have been in no and cancer care that is again becoming the envy of the position to do any different from what we are having world; record numbers of students from normal to do. backgrounds like my own going off to university; Sure I believe that the Chancellor’s Budget is tough but Start; the winter fuel allowance; equality legislation set fair. Responsible governance means taking tough decisions in train by the Labour party in government; the historic now to get our country back on its feet down the road. Good Friday agreement and the peace in Northern Fair governance means the better-off shouldering the Ireland that it brought; tackling pensioner poverty; biggest share of the burden, but most important, it child tax credits; the abolition of section 28; the introduction means taking account of everyone in our society, ensuring of civil partnerships; massive investment in social housing; that pensioners can enjoy dignity in retirement and that free bus passes for over-60s; free swimming for under-16s families in poverty receive the support they need. The and over-60s; free nursery places for three and four-year- long overdue restoration of the link between pensions olds; and Building Schools for the Future. and earnings and the triple lock is to be welcomed. The On the economy, I am proud that we took decisive increase in child tax credits for the poorest families action when the global economic crisis hit. I am proud, demonstrates that fairness is a priority for this Government. too, that we saved the banks from inevitable collapse The raising of the income tax threshold for those on and invested in the economy, leaving the new coalition lower incomes is a huge step forward. It means that with an economy that is in growth. Make no mistake 880,000 of the lowest taxpayers will be taken out of tax 495 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 496 Situation Situation [Angie Bray] support the people who can make that happen. Britain needs positive entrepreneurs, so a reduction in the tax altogether. I recognise that that was very much a Liberal on the profits that they make is welcome news. Allied Democrat manifesto pledge, but it is no less welcome in with reductions in business taxes, it should kick-start our coalition for that. It also resonates closely with our economy and be the decisive action that we need to Conservative values, and I hope that the Chancellor will lift us out of the mess that we are in—the mess created be able to get even closer to the £10,000 threshold that by 13 years of a Labour Government. we all want to see when we can afford it. In my constituency, there are many fine examples of the type of people who will drive this country forward Kate Green (Stretford and Urmston) (Lab): It is all again through their own enterprise. They will certainly very well to say that this Budget will protect the poorest, welcome the rise in the national insurance contribution but how can that possibly be reconciled with a long-term threshold to ease costs for employers, and the cuts in freeze or cut in benefits as a result of linking them to the taxes on businesses small and large. The regional growth consumer price index rather than the retail price index? fund is a great step forward in helping small businesses That is to be compensated for only by the short-term get off the ground. At the moment its remit excludes measure of increasing the child tax credit. Surely this is London constituencies such as mine. I know that it is not a Budget that is fair to the poorest but one that will only too easy to present an image of London as having leave people who rely on those state benefits in a much streets paved with gold, but as we Londoners are well worse position. aware, our capital has many areas of serious deprivation that need supporting. I hope that, in due course, the Angie Bray: I have to say to the hon. Lady that needs Chancellor and his team will consider extending the must, to an extent, and we find ourselves in these scheme or taking other measures to help grow small problems thanks to the appalling governance of the businesses across Ealing Central and Acton. Labour party. I also suggest that part of the problem, I would also like to put in a plug for Crossrail. I am and the reason why I agree with her that many will feel delighted that the Budget allows capital projects to the pain, is that the previous Government had a record proceed and I greatly hope that Crossrail will be one of of allowing a dependency culture to grow. Far too many them. It is essential to London and particularly important people in this country depend on benefits, and we need in my constituency of Ealing Central and Acton. to turn that around if we possibly can. It is fitting that the Chancellor was allowed to bring out Gladstone’s original Red Box to carry his Budget to Matthew Hancock: Does my hon. Friend share my the House. There can be no doubt that Gladstone, a surprise that Opposition Members can possibly comment Conservative before becoming a Liberal, would fully on the fairness of the Budget, given that under the support the coalition and the Budget. He was passionate Budget as a whole the richest will pay the most and the about free trade and lower taxes when possible, and was poorest will not, and that when they were in office, they clear that borrowing was no way to cover over deficits. doubled the tax of the lowest-paid in this country? The coalition’s task is to turn around the biggest financial deficit that this country has faced since the Angie Bray: My hon. Friend makes an extremely second world war. The Chancellor and his team have good point, and let us not forget that the gap between taken courageous and difficult decisions, and provided the rich and the poor actually grew wider under the us with a Budget that gives us every chance to turn the previous Government. corner, get our country back on track and, most important, I believe that the measures I have outlined will help open Britain for business again. ease the unavoidable impact of the rise in VAT. I am well aware that that proposal is especially hard and will affect every single person in the country. Thankfully, 3.31 pm food, children’s clothing, books and newspapers are still Dr Alan Whitehead (Southampton, Test) (Lab): I exempted, but we will all undoubtedly be hit to some must say that I felt that the previous speech was derived degree. My question, however, is this: if not a rise in directly from a Conservative central office handout, VAT, which will bring in an estimated £13 billion, then which was unfortunately handed out before any proper what instead? If the Chancellor had not gone for VAT, examination of the Budget and its impact on those who he would inevitably have had to look elsewhere, including benefit from it and those who do not. It is beyond doubt possibly at further curtailment of public spending. that the Budget is unfair, and harms those least able to Those on higher incomes will face the biggest share defend and help themselves as well as future prospects of the Budget burden. Tax credits will be limited to for the recovery and development of the British economy. households earning less than £40,000, and the figure I want to consider that in the context of the energy and will go down. The 50% tax bracket introduced by the climate change theme of our debate. previous Government is being kept in place for those The Secretary of State, in introducing the theme, earning more than £150,000, and capital gains tax will purported to defend the role of the Budget in the rise from 18 to 28%. Fiscal drag will also mean more Department’s proper ambitions for a green energy economy people paying higher-rate tax. I am not exactly thrilled and a green recovery in the overall economy, with by the prospect of any of those measures, but I accept prospects for green jobs and a change-round so that we that they play an important part in providing a fair produce the goods and services that we need at a Budget. fraction of the carbon output. I have great respect for Prosperity for all is the long-term positive message to the Secretary of State’s commitment to the environment, take from this week’s Budget. To move forward and climate change and energy matters, so I am sad to say replenish the enormous hole in our finances, we must that I was reminded of the well known 18th century 497 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 498 Situation Situation ballad, “The Vicar of Bray”, in which the vicar of Bray to support it if it is breached. Do the Government intoned against popery when it was out of fashion and intend to provide the assistance to ensure that a floor greatly in its favour when it was again in fashion. I hope price can be sustained or do they think—as the Budget that the right hon. Gentleman’s—and, indeed, the Liberal suggests—that these things can simply be left to the Democrats’—principles on climate change and a low-energy market? economy are not affected by the expediencies that the The green deal has been put in place, through the Budget outlines. carbon emissions reduction target and the community We must take action to change the way in which our energy savings programme, while the Great British Refurb economy works in the next few years. We must keep in is coming up—we hope—in order to ensure that houses place the goals to ensure that we reduce carbon outputs across the country have the energy efficiency that they in our economy so that we reach our target by 2050 of will require to play their part in the new low-carbon no less than an 80% reduction in carbon output in our economy. Considerable investment will be needed to country and a 50% reduction throughout the world. I underwrite efficient home insulation for social housing hope that the Government do not resile from that and homes that are without cavity wall insulation. That target, even though they have taken away targets for will require several million pounds of Government support. waiting lists in hospitals and for house building. If they All that was in place prior to the general election. Is it do not resile from that target, there will still be a the Government’s intention to continue that underwriting number of imperatives—a number of which the Secretary or will that be left to the market as well? of State outlined—in terms of the investment needed in A number of important aspects of the development our economy over the next few years to turn around of a low-carbon economy will require that intervention, how much of it works, and in terms of energy supply support and underpinning. I am concerned that, instead and a range of other activities. of continuing to provide that underpinning, the intention That is why I thought, among other things, that the might be to place increasing obligations on energy recent Forgemasters decision, although not enormous companies to undertake it instead. There are already relative to some of those other areas, was nevertheless obligations on energy companies concerning smart meter totemic. It was a decision for apparently short-term and introduction, feed-in tariffs and the carbon emissions expedient reasons to take away a loan—not a grant—from reduction target and, indeed, carbon capture and storage. a company that would have invested in the future of our As well as hearing about increased obligations on energy economy and, in particular, our low-carbon economy. I companies, we have heard that the introduction of hope that the decision is not a precursor to other things smart meters will be rolled forward by a further three for our low-carbon economy, because the coalition years, which will place a further obligation on energy document sets out a number of ambitions that will companies to undertake the financing. Every obligation work only if the investment, underpinning and Government placed on an energy company increases the fuel price support for such changes are put in place. They include and puts more people in fuel poverty as a result. For ambitions on carbon capture and storage, a green every 1% increase in the fuel price, 40,000 people go investment bank, a floor price for carbon and a new into fuel poverty. green deal for home energy efficiency, all of which are Is the Budget going to be fair when it increases VAT essential pillars of that new, green, low-carbon economy. not necessarily on domestic fuel but on fuel across the However, the prospect of a 25% cut in the Department board elsewhere, which also indirectly but eventually of Energy and Climate Change’s budget over the next pushes up fuel prices, leading to more people living in few years suggests, at the very least, that a number of fuel poverty in the future? Will the mechanisms ensure those ambitions will not be supported and funded in the that fairness in fuel access and fuel price becomes a real way that will be necessary. part of the country’s future energy economy? I am concerned that the ambition for a green investment The final important totem to watch carefully is whether bank might turn out to be no more than a re-badging the renewable heat incentive happens over the next year. exercise, unless the Government are prepared to underpin Will the Government put in the underwriting to make the bank in a way that will secure those investments, that renewable heat incentive work? If they are not which will go into new methods of production and new prepared to do that or to make a number of the other services that would not otherwise receive support from necessary underwritings to take us towards the green the traditional banking sector. If the Government have economy, they will have aspirations without means and turned their face against loans that produce results far the principles set out today will prove to be nothing beyond the ambition of this loan, that would suggest more than hollow promises. that the green investment bank might just be the re-badging exercise that I have described. I would also be concerned if the green investment bank simply sought to replace 3.43 pm money that is already in the system—for example, the George Eustice (Camborne and Redruth) (Con): I am £400 million for research and development in low-carbon grateful for the opportunity to make my maiden speech. technologies or the £120 million for the promotion and I start by congratulating my hon. Friends who have also development of offshore wind—with other means, albeit made their maiden speeches today. I sympathise with perhaps with inferior outcomes. my hon. Friend the Member for Staffordshire Moorlands As for a floor price for carbon, it is one thing to have (Karen Bradley) in her frustrations over bureaucracy an ambition for the future. Setting aside for a moment and her impatience at the way in which Whitehall the fact that we operate in the context of a European sometimes adds additional layers to the laws that we in Union with a single market and that if our country this House set out. I also congratulate my hon. Friend unilaterally set a floor price for carbon, others might the Member for Hendon (Mr Offord) and I completely free-ride on it, any floor will have to have intervention agree with him about the importance of building aspiration. 499 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 500 Situation Situation [George Eustice] The constituency also leads in much of the academic research work that will enable wave power to move I would like, too, to congratulate the hon. Member forward, especially at the Camborne school of mines, for Kingston upon Hull East (Karl Turner), who I now located at the combined universities for Cornwall believe has just left the Chamber, on a very articulate at Tremough. speech. That might be something that the constituents My No. 1 priority for the area will be economic of Kingston upon Hull East take a while to get used to. regeneration. I was delighted to hear the Chancellor say I am grateful to the hon. Member for Eltham (Clive in his Budget that he does not propose to make a Efford)—he has also left the Chamber—for his colourful further cut to total capital spending. If we want to description of, and personal perspective on, the new improve our infrastructure and competitiveness and coalition, although when I heard him discussing the rebalance our economy, it is essential that we continue Stockholm syndrome, I wondered whether he was talking to invest in that infrastructure. He is also right, however, about the process whereby Labour Members stuck with that we should switch the focus to creating new enterprises their former leader, the right hon. Member for Kirkcaldy and businesses, and that in particular we should encourage and Cowdenbeath (Mr Brown), for such a long time. the development of new enterprise in those regions such The seat that I represent is a three-way marginal, as as mine that have perhaps been too dependent in the was the former constituency of Camborne and Falmouth. recent past on the public sector. There is only one way The election left me with a majority of just 66 over my out of the current recession: through new businesses predecessor, so it has certainly lived up to its reputation setting up and new industries being created. We need to again this time around. harness a culture in which entrepreneurs are willing to It is a special honour for me to represent my home get out there, take risks, have a go, and feel that they can town. I was brought up between Camborne and Hayle, make a difference. in Cornwall, and my family have lived and worked in Earlier, I mentioned Richard Trevithick, the most the area for more than 400 years. When one has such famous inventor from Cornwall. Like many pioneers, deep roots in a constituency, one feels a special responsibility Richard Trevithick never actually made any money for its long-term future. from his idea of building an engine, but the rest of the My predecessor, Julia Goldsworthy, was also local, country did, and the world has benefited from that and came from a well known Camborne family. I pay invention and everything that followed it. Trevithick tribute to her work for the seat in her five years as a had no regrets about what he had done. Recently, when Member of the House. When she was elected she was conducting some research, I came across an interesting the youngest MP in England and one of the youngest in extract from a letter that he had written. I shall end with the country. She was quickly promoted within the Lib this quotation, because I think it makes a very valid point. Dems, and became first a health spokesman, later shadow “I have been branded with folly and madness for attempting Chief Secretary to the Treasury, and finally Communities what the world calls impossibilities, and even from the great and Local Government spokesman. She also campaigned engineer, the late Mr. James Watt, who said to an eminent locally, most notably on water charges and the injustice scientific character still living, that I deserved hanging for bringing in the south-west whereby just 3% of the population are into use the high-pressure engine. This so far has been my reward expected to carry the burden of maintaining 30% of our from the public; but should this be all, I shall be satisfied by the coastline. I, and many other Devon and Cornwall MPs, great secret pleasure and laudable pride that I feel in my own breast from having been the instrument of bringing forward and will be persistent in pushing that agenda forward and maturing new principles and new arrangements of boundless trying to find a policy solution that ends that injustice. value to my country. However much I may be straitened in Camborne and Redruth is a diverse constituency. To pecuniary circumstances, the great honour of being a useful the south is the peace and tranquillity of the Helford subject can never be taken from me, which to me far exceeds passage and some fantastic gardens such as Trebah and riches.” Glendurgan, with their collection of plants. To the I believe that as we face the present economic challenges north is the rugged splendour of the north cliffs and and try to deal with the environmental challenge of undoubtedly one of the best beaches in the country at climate change, we can learn a lot from pioneers such as Hayle, with three miles of golden sands. At its heart, Richard Trevithick. What we can learn is that Government however, are the three industrial towns of Camborne, cannot simply drop all the answers. I have heard a great Redruth and Hayle, which have made a remarkable deal in the debate today about how Government can do contribution to the industrial revolution. The steam everything, but they cannot. In the final analysis, we locomotive was invented there by Richard Trevithick, need talented individuals to come up with the solutions. the famous Camborne engineer, and the first ever gas The role of Government is to enable those individuals, lamp was invented by William Murdoch in Redruth. not to try to replace their role. Ever since, there has been a healthy rivalry and competition between those towns and not least their rugby clubs. 3.51 pm The loss of the mining industry and iconic engineering firms such as Holman Brothers in Camborne dealt a Luciana Berger (Liverpool, Wavertree) (Lab/Co-op): serious blow to the Camborne and Redruth area. I truly I welcome you to your seat, Mr Deputy Speaker. I also believe, however, that we can be pioneers again and congratulate the hon. Member for Camborne and Redruth become the international centre of excellence in renewable (George Eustice) on his excellent maiden speech, and energy and, most importantly, wave power. Cornwall’s my hon. Friend the Member for Kingston upon Hull coastline is second to none, and we have the engineering East (Karl Turner) on his. expertise to turn ideas into industry. The wave hub Many of my hon. Friends have already raised their project, currently under construction near Hayle, will objections to the Budget. I share all those objections. be the first of its type anywhere in the world—the first As was pointed out by my hon. Friend the Member for installation that can test commercial-scale wave devices. Telford (David Wright), the Budget attempted to rewrite 501 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 502 Situation Situation history, completely ignoring the world economic crisis. Luciana Berger: I thank the hon. Gentleman for his This is the first Budget of the 21st century that hits comments but I do not agree with them. My point was those who are worst off the hardest. Contrary to what that the Conservatives campaigned during the election was said by the hon. Member for Ealing Central and on a pledge that they would not cut front-line services. Acton (Angie Bray), who used the phrase “needs must”, That will not now be the case. the Tories told us throughout the election campaign that there would be no cuts in front-line services. There Toby Perkins: Does my hon. Friend share my confusion? is no possibility of cuts of more than 25% in Government Have we not been told for the past six weeks that the Departments without front-line services taking a hit. Labour Government spent too much money? It appears now that we were cutting all the time. Is she as confused I want to focus on two very different elements of the as I am as to the policy of the Government? Budget which will have a negative impact on my constituency. The first is the appalling news that the Luciana Berger: My hon. Friend makes a very good Sure Start maternity grant is to be restricted to the first point. [Interruption.] child. That raises a number of obvious problems, not least the moral hazard of cutting benefits for low-income Mr Tom Harris (Glasgow South) (Lab): My hon. families and their newborn babies when they need help Friend is making a powerful and significant contribution most. in talking about the difficulties that younger parents in It seems obvious that, in the interests of all of us, particular have in bringing up their first and second children from low-income families should be supported children. What conclusions does she draw about the as much as possible. The proposal in the Budget is less Conservatives’ approach to those difficulties from the than clear. Will the restriction of the grant to a first fact that Conservative Members are mocking her and child mean that those who did not take the benefit when laughing when she is trying to make a serious point they had their first child and are now having their about the difficulty and cost of bringing up children? second cannot receive it, even if they need it? That Luciana Berger: I thank my hon. Friend for making seems particularly likely to happen in a number of his point and I am disappointed by the response from instances, especially following the recession. Moreover, Conservative Members. the Budget seems to make no provision for a number of On Tuesday, the Chancellor said that his Budget “blended” families. What of the mother with her first would protect the most vulnerable. I urge the Government child who is the father’s third? Will that family be to address the question of what limiting support to the eligible for the grant? What of families in which a child firstborn will mean in practice. No family that needs is born while an older baby is still using the necessary help should miss out and, contrary to the Chancellor’s equipment, and what of twins? declaration, this cut will affect rather than protect the The Government will undoubtedly attempt to justify most vulnerable. the cut by saying that the grant is intended to buy The second very different element of the Budget I permanent equipment such as prams, cots and sterilisers, wish to raise is the remarkably short-sighted decision items that will last and can be used for siblings, but what not to introduce tax relief for the UK video games their decision fails to recognise is that a great deal of the industry, which makes a valuable contribution to the grant is used after the baby is born to offset the high UK economy: in 2009, it generated £2 billion of sales, cost of looking after a newborn child. The grant is added approximately £1 billion to the UK’s GDP, raised often spent on nappies, milk, other food products, over £400 million for HM Treasury in tax revenues, and clothes, medicine, and any number of other perishable employed more than 28,000 people. It is an export- items that cannot be used for more than one child. orientated, high-tech, highly skilled, low-carbon industry. Furthermore, while it is somewhat more likely that a As we speak, the best developers are leaving the UK family with a second child will already have the necessary and going to Canada and the USA. The UK lost equipment, it is by no means reasonable to make such 700 jobs in the sector from 2008-09; a full 7 per cent. of an assumption. That is especially true of low-income its work force. That not only is harmful to the UK families who will often buy cheaper, less durable equipment industry and to games already in production but means that simply will not last long enough to be used by later that some games that would otherwise have been made siblings. Even if it were reasonable to assume that a in the UK are made elsewhere. pram, for example, could be used for a second child as well as a first, what of the third or fourth? The estimated Why are so many of the video games industry work cost of bringing up a baby during its first year is £4,000. force leaving the UK at a time when global video game I know from speaking to many constituents that the sales grew by 24 per cent. between 2007-09? Why has £500 Sure Start maternity grant has afforded babies in the UK games development industry fallen from the Wavertree a better welcome to our world. third largest in the world based on revenue in 2006 to fifth place in 2009? It is because the UK’s principal The Chancellor said on Tuesday that his Budget competitors in Australia, Canada, China, France, South would protect the most vulnerable. Korea, Singapore and the USA all received national or Robert Halfon (Harlow) (Con): The hon. Lady talked regional state tax breaks for games production. For about cuts to front-line services in her constituency and example, in Montreal, Quebec, there is a five-year income I understand her wanting to protect those services, but tax holiday for foreign specialists and research and why even in the boom times did her Government cut development tax credits cover 20% to 35% of qualifying front-line services in my constituency, such as closing expenditure. down the Territorial Army centre, cutting the budget of Other competitive nations have taken a strategic decision Harlow college by £1.6 million and closing down the that the video games sector is a key element of their Inland Revenue office? Why are Labour cuts ignored economy. Research carried out by The Independent and Tory cuts condemned? Game Developers’ Association, or TIGA, the trade 503 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 504 Situation Situation [Luciana Berger] the hon. Member for Kingston upon Hull East (Karl Turner)? We have heard some excellent speeches, and I association representing the UK games industry, indicates was particularly pleased to hear from my hon. Friend that over five years games tax relief would create or save the Member for Staffordshire Moorlands, whose 3,550 graduate-level jobs, increase and safeguard constituency I often have the pleasure of walking through £457 million in new development expenditure and save on my very rare days off these days. development expenditure that would be lost without tax I wish to speak briefly about business finance. Some relief. Most significantly, introducing games tax relief Members have talked about the lack of discussion of would increase and protect £415 million in new and growth today, and growth is clearly vital for our economy. saved tax receipts for HM Treasury—far outweighing Members have referred to the importance of the private the £192 million that games tax relief would cost. sector and of private sector investment taking us out of Can the Minister explain why it is stated in table 2.1 the situation we are in and creating jobs and tax revenues. of the Red Book that the non-introduction of video The Budget Red Book rightly states that small and games tax relief would raise an additional £190 million medium-sized enterprises over the next five years? How was that figure arrived at? “are fundamental to the economic recovery and to tackling In my constituency and across Liverpool there are a unemployment”, number of video games developers: Genemation, Bizarre and I listened with interest to the remarks of the hon. Creations, Magenta Software and Playbox. Sony Computer Member for Liverpool, Wavertree (Luciana Berger) about Entertainment, based at Wavertree technology park, tax relief on video games. However, some SMEs continue employs more than 600 people. Games developed over to have problems accessing the affordable finance that the past 15 years in north-west England alone have they need. produced and sold over 100 million units, equating to over £3 billion in revenue. It is important to put that statement in context. We have an outstanding record for vision and originality According to figures from the Institute of Directors, in of games, but it is clear to me from having spoken to a 2001, 45% of its members were financing their businesses number of people in the industry that there is a deep through bank loans and 40% through overdrafts. A sense of frustration. All they want is a level playing field recent survey shows that now only 28% do so through so that we can at least maintain the UK’s position, if bank loans, 36% through overdrafts and 20% to some not grow the sector, so that jobs are retained and we can extent through credit cards. That is not a sustainable compete on a fair basis. model for SME finance when we are looking to SMEs to be the engine that pulls us into the strong growth The video games sector is an important and growing necessary both to tackle the scourge of unemployment knowledge-based industry. More than a third of the and to generate the tax revenues that we so desperately work force are carrying out graduate-level jobs in games need. development. Average salaries exceed £30,000, which is above the national average of £22,000. There is absolutely Why have things changed so much? An IOD survey no doubt that a cultural revolution is taking place in the of 1,045 directors earlier this year was revealing. It games sector, whether in serious games such as educational showed that 57% of businesses seeking bank finance in programmes and defence training simulators or recreational 2009-10 were rejected by their banks. Perhaps even games. more discouraging was the fact that 83% of those declined bank finance were not even offered information Interactive media industries are with us for the next on the previous Government’s and the current Government’s century and we should be doing all we can to support enterprise finance guarantee. Indeed, personal guarantees the sector to be a world leader in the field. Just as we were sometimes asked for even when the enterprise have film tax relief in the UK, the Government should finance guarantee was offered. uphold the commitment both coalition parties made before the election to have a games tax relief. Britain has The Government have increased the enterprise finance traditionally been a leader in the field of video games guarantee facility by £200 million for the current year to development, and in many ways it still is. However, we support additional lending of up to £700 million. I cannot compete without the same tax incentive system welcome that, but it is clear that implementation is key. that is in place in other countries. The EFG will not help small and medium-sized enterprises if the participating banks do not make their customers Throughout the Chancellor’s speech on Tuesday, he fully aware of it. Neither will it help if the procedures kept on repeating that his Budget was an accelerated are lengthy. Profitable SMEs often run into short-term decrease in the structural deficit, but as I have shown cash-flow difficulties—I recently came across one such through reference to just two of the cuts announced, it instance in my constituency—and swift and decisive is actually an accelerated attack on families. It is an help is needed in such cases. I therefore welcome the accelerated attack on those who are most vulnerable, on processing target, which is mentioned in the Red Book, business and on growth and jobs. I will be voting of 20 business days for all major lenders participating in against it next week. the EFG. Indeed, I think that serious lenders could do considerably better. 4.2 pm Although the EFG is welcome, it will not fix the Jeremy Lefroy (Stafford) (Con): May I welcome you problem of the lack of bank finance. The announcement to the Chair, Mr Deputy Speaker? May I also congratulate that the Government will publish a Green Paper on those Members who have made their maiden speeches business finance before the summer recess is an important today: my hon. Friends the Members for Staffordshire and clear sign that they understand the situation, but Moorlands (Karen Bradley), for Hendon (Mr Offord) we need action from banks now. Their reputation has and for Camborne and Redruth (George Eustice) and been tarnished in recent years, and I do not make that 505 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 506 Situation Situation point with any satisfaction because they are not the There has been a lot of talk in the Chamber today only people in that position. What better way for about comparisons with the situations in Greece and British banking to restore its reputation than to provide Canada, but in my view they are false. I think that the most of the finance that UK SMEs need to carry out most appropriate comparison in many respects is a the task of profitably creating jobs and generating tax domestic one, and it was touched on by the hon. Member revenues? for Cities of London and Westminster (Mr Field). He is Bank loans and overdrafts are not enough. SMEs no longer in his place but he made a very interesting also need greater access to riskier capital, particularly speech, in which he compared the present situation with equity and quasi-equity, but the UK has not excelled in the approach adopted by Geoffrey Howe and Margaret that area. The new or growing business cannot necessarily Thatcher. In fact, the Culture Secretary has been talking provide security for loans, so more unsecured finance is up the appropriateness of making comparisons with the desperately needed. I therefore welcome the growth Thatcher Budget of 1981 and the general economic capital fund that the Government will create as part of strategy of that Conservative Government. the existing £237 million programme of enterprise capital There are differences—we are in a different time, and funds. I credit the previous Government with recognising the economic circumstances are not the same—but the importance of such funding and I am delighted that what is being done with this Budget has strong parallels this Government will build on that work. with what was done in the early 1980s. Geoffrey Howe Those amounts are necessarily small. It is the raised VAT from 8% to 15% in 1979, following an Government’s role to take the lead, but they cannot and election campaign in which he said that his party had do not shoulder the whole burden. In north Staffordshire, absolutely no intention of hiking up the tax. Today, of we have the Michelin Development fund, which was set course, the Chancellor has raised VAT from 17.5% to up by the tyre company to provide unsecured finance to 20%, following an election campaign in which he—and local SMEs, with the specific remit of creating sustainable his coalition partners in particular—said that they had jobs in profitable businesses. There is also the North no plans to increase VAT. Staffordshire Risk Capital Fund, which invests in businesses Geoffrey Howe slashed benefits in the 1980s: the in my constituency. It is a public-private partnership, 1981 Budget made sickness benefits and unemployment with investment from local businesses, individuals and benefits taxable, and unemployment benefit for the the regional development fund. It was set up with a over-60s was reduced. The Chancellor today has done 10-year life and is drawing to a close. We must ensure similar things today: among many other things, he has that it is renewed or replenished, because it performs a cut child benefit and disability living allowance, and vital role. I will do everything I can to assist with that. reduced tax credits for young parents earning just In south Staffordshire, we have the Black Country £15,000 each. Reinvestment Society, which supports firms in Stafford The reactions from the national commentariat are with secured and unsecured funding. similar too. In 1981, 364 economists signed a letter to I believe that Members of Parliament on both sides The Times warning that the Thatcher Government’s of the House have a vital role to play in encouraging policies would deepen recession and threaten social and such funds to form and grow in our constituencies. In political stability. In April this year, 80 economists my working life in business, over more than 25 years, signed a letter to The Times warning that the current the greatest pleasure was in creating new and lasting Tory Government’s approach would lead to job losses jobs, and the times of most distress were when someone that would affect spending and confidence and tip us had to be made redundant. Working with local people back into recession. to create or support such funds gives us the chance to Surprisingly, Washington in some respects took a play a direct role in helping SMEs to do the job that more cautious approach, then as now. In 1981, just after they want to do and that we so desperately need them Geoffrey Howe’s Budget, President Reagan signed the to do. Economic Recovery Tax Act to stimulate US consumption. This month, President Obama wrote to the Prime Minister 4.9 pm and other G20 leaders to remind them of the dangers of withdrawing stimulus and engaging in fiscal consolidation Mr Chuka Umunna (Streatham) (Lab): I have listened too quickly. with interest to the various speeches made today and I What were the effects of the approach adopted by do not think anybody denies the need to reduce the Geoffrey Howe in the 1980s? I can describe what they deficit. Neither do I think that my fellow Labour Members were in my constituency, in which I am proud to say think that the answers all lie with government, but the that I have lived all my life. In April 1981 my mother big decisions that we are taking at the moment are was out shopping with my sister and me in the middle about judgment and the direction in which we think of Brixton when the riots broke out. I was too young—just economic strategy should go. two and half—to be able to remember what happened, but I want to pose some questions on those issues, because my mother remembers it well, and it was terrifying. it is clear, on any analysis, that this Budget is going to Soon after those riots, Lord Scarman was appointed hit everybody. My own view, which is obviously not to hold an inquiry into what caused them. It is well shared on the other side of the House, is that it will hit known that racism in the police at the time was a major the poorest and most vulnerable people in society hardest. factor, and the rioting was attributed to a loss of confidence How can it not, given the figures that we are looking at? in the police among significant sections of the population The IFS data for 2012-13 leave no doubt of the Budget’s in my constituency and the other two constituencies in regressive nature. They make it clear for all to see: the Brixton area. However, although the report said indeed, the Financial Times said yesterday that that “the result of cuts in government services will be felt more on “the social conditions in Brixton do not provide an excuse for Nottingham’s estates than by the Notting Hill set.” disorder” 507 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 508 Situation Situation [Mr Chuka Umunna] problems because of the structural deficit that we had going into the recession? Does he agree with this quotation: it added that “Public finances must be sustainable over the long term…If “the disorders cannot be fully understood unless they are seen they are not, the poor, the elderly, and those on fixed incomes in the context of complex political, social and economic factors”. who depend most on public services will suffer most.”?—[Official Report, 2 July 1997; Vol. 315, c. 303.]? The report continued: They are not my words but those of the right hon. “There can be no doubt that” Member for Kirkcaldy and Cowdenbeath (Mr Brown). unemployment “was a major factor in the complex pattern of conditions which Mr Umunna: First, the deficit pre-November 2008 lies at the root of the disorders in Brixton and elsewhere. In a was primarily in some respects caused by increased materialistic society, the relative deprivation it entails is keenly spending to which those who are now in the Conservative felt, and idleness gives time for resentment and envy to grow.” Government were then committed. Conservative Members With regard to the Tulse Hill estate—I have just come are continuing to promote the view that somehow there from that estate to the House today—it was pointed out was no global credit crunch, and that the bankers, many that high unemployment, coupled with society’s emphasis of whom they are very friendly with, had nothing to do on material acquisition, led to both material deprivation with it—but the general public do not buy that. and a sense of hopelessness, particularly among the Conservative Members will have to accept that, but youth. Of course we know what happened after that: the real question that I want answered—I note that a unemployment rocketed beyond the 3 million barrier Minister is still here—is: what comfort can he give to and stayed there until 1987. the people who live in places such as the Tulse Hill estate in my constituency that they will not have to pay Kwasi Kwarteng: Is the hon. Gentleman seriously the price? What measures will he take to help them to suggesting that riots on the scale witnessed in Brixton in get back into work? What will he do to give them extra 1981 will come as a result of the Budget? training and experience? Why on earth is he cutting programmes such as the future jobs fund, which I have Mr Umunna: No, I am not, but I am seeking to point seen working in my constituency, helping to get people out what happens when people take a cold, dispassionate back into work? The Government say that the future and inhuman approach to economics and neglect to jobs fund is ineffective and a waste of money, but they consider the consequences of their actions. do not have figures on which to base that assertion. The Red Book makes no provision for funding any programme Mr Tom Harris: I rise in part to respond to the hon. to get young people back into work or into training that Member for Spelthorne (Kwasi Kwarteng), because it will replace what the Government are abolishing. was not my hon. Friend the Member for Streatham (Mr Umunna) who suggested that riots would return to The Financial Secretary to the Treasury (Mr Mark the streets of Britain; it was the Deputy Prime Minister, Hoban): Perhaps the hon. Gentleman will think back to who said just a few weeks before the general election the package of cuts that was announced last month. that the scale of cuts foreseen at the time would result in Some £500 million of the £6.2 billion of cuts was civic society breaking down in this country. Is the hon. recycled into extra training and more apprenticeships; Gentleman suggesting that the Deputy Prime Minister that is where this party’s commitment to growth comes is mistaken? from.

Mr Umunna: Silence. Mr Umunna: I am not going to say that I do not welcome things such as apprenticeships, because we There has been a lot of talk about IFS and IOD need those programmes, but at the same time as the reports, various statistics, the extent to which we need to Government are putting in place 10,000 apprenticeships, reduce the structural deficit and the extent to which it is they are slashing a programme that could place hundreds cyclical—but we are talking about people’s lives, and I of thousands of people in work. I do not understand am deeply worried about what the approach adopted by their approach; ultimately, my constituents want to the Government means for my constituents and those know what is happening. who live in similar areas. There was talk of contrived anger. My worry is not contrived; it is very real. As has been said, the Office for Budget Responsibility has 4.21 pm revised up the unemployment forecast by 100,000 people. Guy Opperman (Hexham) (Con): I remind the House The Chartered Institute of Personnel and Development that I have declared a previous involvement in is saying that it is absolutely certain that unemployment manufacturing through my family firm. will go beyond the 3 million barrier again. Before I talk about the Budget, I wish to say something I took the trouble to look into some of the cuts that about the maiden speeches that we have heard. We Geoffrey Howe imposed on the country, and what heard an excellent maiden speech from my hon. Friend worries me most is that they pale into insignificance the Member for Staffordshire Moorlands (Karen Bradley). compared with the cuts envisaged by the Government Her seat is similar to my Northumberland constituency, and now. Howe cut spending by 4% between 1981 and 1984. she spoke eloquently about the contribution that can be The Chancellor is planning 25% cuts over four years. made by tourism and farming, which I look forward to championing with her. My hon. Friend the Member for Matthew Hancock: I thank the hon. Gentleman for Hendon (Mr Offord) also spoke well, and the hon. giving way in his an extremely thoughtful speech. Does Member for Kingston upon Hull East (Karl Turner) he not agree that we have to deal with these huge was a great deal more articulate than his predecessor in 509 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 510 Situation Situation the House. My hon. Friend the Member for Camborne do differently? The answer to that is fundamentally and Redruth (George Eustice) said that his family lived lacking from the Opposition’s arguments. It is a bit like in his constituency 400 years ago. The constituency was watching the French football team: everything is wrong, also the home of Ross Poldark, who found fame and but they have no alternatives. fortune in the novels, and I am sure that my hon. Friend I have also read in detail the speeches of the shadow will have a similarly colourful career. Chancellor, the right hon. Member for Edinburgh South It gives me no pleasure—to a certain degree I endorse West (Mr Darling), and the right hon. and learned what was said by the hon. Member for Streatham Member for Camberwell and Peckham (Ms Harman), (Mr Umunna) on that subject—to speak in a Budget who spoke on Tuesday. The only features of which she debate when we all face such difficult circumstances. spoke in support were the capital gains tax measure, the Unemployment has increased considerably in the four 50p tax and the bank levy. Northumberland constituencies. It has increased by Earlier today, to support his argument, the right hon. nearly 60% over the past five years in the two Labour-held Member for Coatbridge, Chryston and Bellshill (Mr Clarke) constituencies of Blyth Valley and Wansbeck, and by a quoted the right hon. John Smith saying, “I judge a similar amount in Berwick-upon-Tweed. Unemployment Budget on what happens to a person living on a council in Hexham has increased by 67% in the past five years. estate.” We have a number of council estates in my I have heard much of what Labour Members have constituency, and during the election we constantly said in today’s debate, but this is not a question of articulated the view that to spend £400 a week while ideology. We are not Thatcher’s children producing making only £300 a week is to head for financial disaster. Thatcherite views. I assure Labour Members that I did Everyone can understand that. not join the Conservative party until considerably after Mrs Thatcher left office, and I am not in a position in We have heard a lot in our debates in the House which I want to put forward such a point of view. The about various organisations’ comments on the Budget. ideology behind what we are trying to do to put things I represent a north-east constituency. The North East right is a simple question of maths. We have outgoings Chamber of Commerce, an august body which represents of £700 billion and incomings of £545 billion. Those more than 4,000 businesses and more than 30% of the figures are unquestionable; the issue is how we address region’s work force, says: the situation. “The Budget clearly contained a number of painful measures on…taxation and spending. However… Funding for a strategic My ideology arises from the fact that my family came economic development body in the North East was maintained”. to this country nearly 100 years ago as immigrants with next to nothing. They had no opportunities, save what The NECC continues: they could make. In the 1920s—when there was a real “Reductions in employer National Insurance (NI) contributions recession and things were really bad—my grandfather and headline Corporation Tax are welcomed by businesses, as is came home from school to be told by his father that the extra exemption on NI in certain regions”. school was no longer an option, and he would have to It says: be withdrawn so that he could work for his father. The “The Chancellor was right to avoid further capital spending three children then began to work for their father in the cuts and to confirm spending on the Tyne and Wear Metro”. basement of a small flat in Islington and built up a The NECC goes on: small manufacturing business on the back of a small gift of £40. I wish to say something about manufacturing. “The scale of the public finance deficit clearly required radical In 1997 we made roughly as much as we consumed in action… NECC believes the measures taken broadly support the this country—about £160 billion, compared with wealth-creating part of the economy in the North East.” £150 billion. Now, however, we consume nearly twice It adds: what we make. “Freezing public sector pay and reforms to pensions were In Northumberland apprenticeships are struggling. I difficult but necessary decisions to address the deficit and help visited Glendinning’s, a firm in my constituency, shortly reduce the need for large job cuts in the region’s public sector.” before the election. I was told that the firm could not The NECC welcomes—[Interruption.] Bless you. I welcome take up the Government’s apprenticeships, for the simple the hon. Member for Washington and Sunderland West reason that they were so complex and so administratively (Mrs Hodgson), a fellow north-east Member, who is difficult to implement that it was better off working suffering from hay fever. I am happy to have accepted outside the Government’s scheme and ignoring any her intervention, brief though it was. Government money. The NECC has also welcomed the increased thresholds During the election I went round nearly all the stores for employer national insurance contributions and changes in Wylam in my constituency and asked the owners to the headline rate of corporation tax. The one criticism what the effect would be if national insurance went up. I put to Treasury Ministers is that, like the NECC, I Every single one said that if it was increased, they find it would have to put people out of work. “disappointing to see no change to empty property rates, which There are many responses to the Budget that we we continue to see having a punitive effect” could discuss, but there has been little from the Labour leadership. I have listened to the debates so far, and on businesses, not only in the north-east, but throughout yesterday I listened to the hon. Member for Harrow the country. West (Mr Thomas), who uttered not one word about On capital spending, it is wonderful to see that the what he would do differently. It is all very well saying Tyne and Wear metro will go ahead, and that the A1 that the Labour Government were going to cut the will finally see some form of action, which has long deficit by 50% in a number of years—but surely the been supported by many hon. Members—albeit that question is what would they cut, and what would they the money still has to be found. 511 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 512 Situation Situation [Guy Opperman] sector. I know how hard they work. They work beyond their contractual hours, and when there is recruitment As I was sitting here this morning representing a freeze, they pick up the slack and carry out the work fundamentally farming constituency during questions created by the vacancies. They went into the public to the Department for Environment, Food and Rural sector because they wanted to serve the public, and Affairs, there was a brief sighting of an interesting and their only perk was a decent pension. They have never rarely seen—in the House for the past six weeks—individual, had a large wage compared with those in the private the right hon. Member for Kirkcaldy and Cowdenbeath sector. They are the people who serve the House, who (Mr Brown). He is not normally seen at DEFRA questions, turn policy into legislation and who defend the Government. and like a small badger he nipped in and, alert to a Instead of being accountable to members of the public, possible cull, nipped out again very quickly, before any they seem to be accountable to accountants. They know of us could question him in any way whatever, whether where the budget can be trimmed. Every single minute on DEFRA questions—not something that I necessarily of their working day is accounted for. think he would have been seeking to answer—or on Public sector workers work beyond the call of duty Budget matters. It would have been wonderful to have just to ensure that the wheels of this country turn. They had the opportunity to ask the former Prime Minister always act in the public interest and are committed and just what he had to say about the state of the budget. I loyal to this country. I note that the Government want would certainly have wanted to make the point that we to hear from them about how to make cuts, but that old are set to miss his golden rule by £485 billion—quite a cliché of turkeys voting for Christmas comes to mind, significant miss, one might think? One thing is for sure: because no one will say, “Here, have my job. Take this as when he is brought to account in this House, he will a cut.” The Government should carry out a skills and have to answer for the state of the nation and the policy audit of each Department, because that way they country’s finances. He may run, but he will never hide can decide their policies and priorities. I note from the from that issue. He has much to account for, and we will Chancellor of the Exchequer’s speech that he has asked ensure that he does so. Will Hutton to look at plans for fairer pay throughout I finish by recommending a study of all the finances. the public sector, and I ask the right hon. Gentleman to Some aspects might be due to other factors, but most of extend that remit to those private companies that received what we now see happened on the watch of the previous public money in the bail-out. Government. I recommend the Budget to the House. Will Hutton said himself in an article in The Observer that even John Lewis, the founder of the department 4.32 pm store, thought it extraordinary that a chief executive Valerie Vaz (Walsall South) (Lab): It is a pleasure to should receive almost 20 times’ the pay of other workers. follow the hon. Member for Hexham (Guy Opperman). President Obama’s pay tsar is doing exactly the same in He does his family proud. They will be very proud of the United States, and Will Hutton’s remit should him and the speech that he made today. It is also a be used to renegotiate the payouts and compensation pleasure to listen to all those who made their maiden made to those who have received exceptional taxpayer speeches. They will do their constituents proud. assistance. Thank you, Mr. Deputy Speaker, for allowing me to Much has been said about the private sector mopping speak in the Budget debate. There was an audible gasp up after the public sector, but the reality is there to be around the country, and that was just from the parents seen in my constituency. On Saturday I met a delegation whose children had finished their GCSEs, and that of workers from Maple Leaf Bakery in Raleigh street. includes my own daughter Liberty, my nephew Luke They told me how they are under pressure to sign a new and 630,000 other 15 and 16-year-olds. They have worked contract at different hourly rates. If they do not, and hard and given up many activities, so that when August even if they put in a letter of protest, they will be comes no one can say that they did not work hard and sacked, so they either accept the new rate or go. The that exams are getting easier. When they end up here, as rate has been reduced from £8.48 an hour to £6.88. Those some of them will do, I hope that they will not condemn people make our daily bread. I met them, and some us by saying that we just taught them how not to pass have been at the factory for more than 37 years, so they exams and did not give them a decent education. We have the skills. If there had not been a minimum wage, should acknowledge the efforts of their teachers, too. who knows what their pay would be? ACAS has been My husband Paul is waiting for an Ofsted inspection, so involved, and all that the workers want to do is work. there is another major event in the family. I was pleased They have a way forward and have suggested a team to to invite his school to the House, St Mary’s Roman look at ways of reducing waste, upgrading the plant Catholic primary school. They came on Monday, and and cutting the number of managers. Its parent were greeted by their MP, the hon. Member for Brentford company in Canada is making a loss, but the and Isleworth (Mary Macleod). company in my constituency makes a profit. My hon. The Secretary of State for Education could learn Friend the Member for Bolsover (Mr Skinner), commonly something from those young people. He seems to known as the beast of Bolsover, is sadly not in the misunderstand the word “free”. He wants people to set Chamber, but he described the events of the economic up free schools, but they are not free; the money is meltdown as an “economic tsunami”. I could not put it coming from the public sector and coming from taxpayers any other way. so that some people can say, “We’re setting up vanity People forget that when the Prime Minister attends schooling.” And that is just what it is. the G20 summit at the weekend, he takes with him the Much has been said about public sector workers, and legacy of my right hon. Friends the Members for Kirkcaldy it is here that I have to declare an interest because I have and Cowdenbeath (Mr Brown) and for Edinburgh South friends and former colleagues who work in the public West (Mr Darling), who did not blink in the face of the 513 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 514 Situation Situation huge financial pressures and meltdown but steered the only thing bothering him is a difference of 5%? I have ship of state into safer waters. That is the true legacy of not heard anything from Labour Members in the past the past 13 years. two or three days that remotely suggests how they would achieve the 20% cut that they have talked about. 4.38 pm James Carville, who was President Clinton’s political Sajid Javid (Bromsgrove) (Con): I pay tribute to adviser, once famously said: those hon. Members who have made their maiden speeches “I used to think if there was reincarnation, I wanted to come today. My hon. Friends the Members for Staffordshire back as the President or the Pope or a .400 baseball hitter. But Moorlands (Karen Bradley), for Hendon (Mr Offord) now I want to come back as the bond market. You can intimidate and for Camborne and Redruth (George Eustice), and everyone.” the hon. Member for Kingston upon Hull East (Karl Soon after that, President Clinton abandoned his plans Turner), all made excellent maiden speeches. to increase borrowing, recognising instead that, even at After 13 years of Budgets that were predicated on the that time, he had no choice but to balance the budget. I mistaken notion that boom and bust had ended, it is have traded in the international bond markets for many hugely reassuring to see a Budget that restores some years, and working on a trading floor I saw for myself fiscal sanity. This Budget puts at the heart of our just how severe the financial crisis was. There is no economic policy the restoration of our nation’s finances question but that we would have faced economic problems and the laying of foundations for stronger economic regardless of the actions that were taken by the previous growth. In response to the hon. Member for Walsall Government, but their actions made things worse, and South (Valerie Vaz), however, I must add that we do not that is the key. The situation has been made worse by know what the previous Government’s legacy is, because the huge amount of borrowing that we have taken on some costs of the past two or three years’ actions have since that time. yet to be borne—but will be unless this Government Mr Tom Harris: Does the hon. Gentleman believe take preventive steps. that it was right for the Government to bail out Northern I shall not dwell on what has been bequeathed to us, Rock? but I must mention a few statistics that speak for themselves. The budget deficit is more than 11% of Sajid Javid: Personally speaking, on my own behalf, I GDP, and the largest of all advanced nations’; the would not have carried out the bail-out in such a way. I visible national debt is 68% of GDP; and a record think that the true consequences and costs of that 28% of the adult working population—8 million people— bail-out are yet to be borne out. are currently described as “economically inactive”. Despite I know from my own experience of the bond markets all Labour’s efforts, no amount of spin can hide the that they take no hostages. We now depend on them truth of the abysmal inheritance that we have been utterly for the nation’s finances. My right hon. Friend given. Once again, it has been left to a Conservative-led the Secretary of State was absolutely right to point out Administration to clean up the mess of a former Labour that we face a major sovereign crisis unless we take Administration. As it says in the Budget, we have to serious action. Some Labour Members have said that it start doing that by addressing this record peace-time does not look as though we have had problems with deficit. financing our budget deficit to date. We borrowed about I am somewhat surprised that Labour Members continue £225 billion in gilts in the last financial year, but at the to act as though we can keep living beyond our means, same time, the previous Government, through the process when only £3 in every £4 of Government spending is of quantitative easing, printed about £225 billion of raised through general taxation. Only eight weeks or so new money. It is therefore not difficult to work out how, ago, even the Labour leadership admitted during the in effect, much of that borrowing was paid for. election campaign that if they won the election they The United States was the only other major economy would have to carry out severe cuts as well. There were that went through a process of quantitative easing, and various estimates, but they averaged about 20% of real we cannot use it as an example to compare with ourselves cuts in unprotected Departments over the course of the because, as we know, it has a reserve currency and we do next Parliament. Notably, the then Chancellor of the not. That makes its situation entirely different when it Exchequer said in an interview that if he were re-elected comes to such an economic policy. The only other he would have to make bigger and deeper cuts than country in the world that I can think of without a Margaret Thatcher did in her time. Now, however, reserve currency that went ahead and printed money at Labour Members act as though those cuts are not about the same time as us—indeed, before—was Zimbabwe. necessary and we are able to make a choice. It is rumoured that the Finance Minister of Zimbabwe sent a note in 2008 to the then Chancellor of the Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op): Exchequer offering him his economic advice in exchange It is not the reduction of the deficit that is the point of for lifting visa restrictions on him and his family. I think conflict between us but the scale and the speed of doing the then Chancellor took the advice but did not give it. Doing it in the way that has been proposed risks anything in return. pushing the economy back away from growth and into recession. In that situation, the deficit will increase, not The bond markets are picking off grossly indebted decrease. Does the hon. Gentleman accept that point? nations one by one with rising bond yields and falling prices. We have heard today about Greece, and we have Sajid Javid: The hon. Gentleman’s own party said seen what has happened in Ireland, Portugal, Spain and before the election that it expected to make very large, Italy. Those who observe the markets carefully need severe cuts, in the order of about 20% in real terms. Our only look at what has happened, to a lesser extent, in Budget proposes cuts of about 25% in real terms in France in recent weeks, where problems have started. unprotected Departments. Is he really saying that the That is why France, too, recently announced an austerity 515 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 516 Situation Situation [Sajid Javid] not include the invisible national debt, public sector pension liabilities, which reputable organisations estimate package. We have no choice but to reduce the record to be more than £2 trillion, and all the private finance budget deficit, or else we will face an economic crisis of initiative liabilities, which grew from approximately cataclysmic proportions. £20 billion to £150 billion. We have a huge debt problem, which must be addressed, otherwise not only will this Chris Williamson (Derby North) (Lab): I would be generation and our children pay for it, but our children’s interested to hear what the hon. Gentleman has to say children will inherit it. Let us not forget the changing about Professor David Blanchflower’s comments yesterday. demographics in our country, where we have a growing He said that the Budget made him more certain that elderly population and fewer people of working age. there would now be a double-dip recession, with no That means that there are fewer people to tax and fewer room for manoeuvre because interest rates are already who are able to fund the state’s activities, including so low. Would the hon. Gentleman comment on that? repayment of debt. The Budget addressed how to start promoting growth, Sajid Javid: Yes; Professor Blanchflower has been which will help us get out of the mess. The Government consistently wrong for the past three years since the are reducing corporation tax, the tax on small companies crisis started, and he was wrong in what he said yesterday. and on entrepreneurs’ relief, and addressing some of We have no choice but to cut the deficit, and that the problems of bank lending Many banks have been requires both cuts in spending and the raising of taxes. held back from increasing lending since the onset of the As we have heard today, we have to a strike a balance crisis because of the uncertainty of the future economy. between the two, and the burden must fall on public The Budget gives banks much more certainty about the spending. We have no choice about that, because if we future of our economy, and that gives them more confidence raise taxes too much we will destroy the very incentives to lend. that we need to create the growth that will get us out of The securitisation market has not been mentioned this economic mess. often in the debate. More than the equivalent of £5 trillion As we go through that process, we must naturally try has been issued in the past 10 years. Many banks used to protect the most vulnerable as much as we possibly that to provide funding to small and medium-sized can. Opposition Members have accused us of being companies and to fund mortgages throughout the world. ideological about the matter, but how can we be anything Securitisation unquestionably caused some of the problems else? They are absolutely right, and there is no shame in of the credit crisis, but we must consider that market if it, because there is an ideological difference between we are serious about getting banks to lend again. So far what they believe and what we believe about how to get this year, European banks have issued ¤30 billion of our country back on track and our economy going. securitised bonds, against ¤500 billion in the same period The Opposition believe in some kind of Alice in last year. Last year, 95% was purchased by the private Wonderland economics in which we can go on living sector; so far this year, 95% has been purchased by the beyond our means year after year. We believe in the real public sector central banks throughout Europe, including world, where we have to pay our way. They believe that ours. the state has the answer to all society’s problems, but we We are considering a bold Budget to redress a dire believe that individuals, helped by the state, have the situation. Its measures are thoughtful and disciplined answers. They believe in an ever increasing welfare state, and it aims to spread the economising process throughout in which people are tied down and not allowed to profit the nation. No group is spared and none is favoured. from their own industry, and we believe in helping the most vulnerable in society—those who cannot help 4.52 pm themselves—but freeing those who can work for themselves Toby Perkins (Chesterfield) (Lab): It is interesting to and earn an income, and giving them the incentives to follow the hon. Member for Bromsgrove (Sajid Javid). do just that. Because of that, we believe that we can get There was one thing in the past 14 minutes that I am more out of our constrained budget, repair our economy glad that he acknowledged; otherwise there was little and create a fairer and more responsible society. with which I could agree. However, I agreed with the Mr Tom Harris: Will the hon. Gentleman give way? admission that the Budget is ideological and that the Conservative party has delivered the sort of change that Sajid Javid: I should like to plough on for a bit, but I it always wanted to make and scrapped the massive will give way in a moment. improvements that the Labour party made in the public sector. It is not an economic but an ideological Budget. The size of our national debt cannot be ignored, The hon. Gentleman’s honesty, at least about that, does either. It has not been mentioned much—we have all him great credit. talked about the deficit, but let us not forget the enormity of the problem caused by the national debt. Any I want to consider the huge and unnecessary gamble Government will have to address it at some point. that the Chancellor has taken with our economic recovery, Benjamin Disraeli once said: and why a genuine growth strategy would enable us to grow our way out of the economic crisis without threatening “Debt is the prolific mother of folly and of crime.” thousands of people with the dole, and without threatening He should have known, because there was not just those who rely on housing benefit or the economic public debt at the time; I believe he had some personal recovery. I shall also talk about the Budget’s impact on debt, and he was probably referring to that as well. my constituents in Chesterfield and Staveley. After 13 years in office, Labour took our visible First, I shall deal with the myth that the Chancellor national debt from £350 billion to more than had no choice and that the measures were taken out of £900 billion—an almost threefold increase. That does economic necessity rather than, as the hon. Member for 517 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 518 Situation Situation Bromsgrove admitted, political ideology. That is nonsense. heard over the past three days. I look forward to watching The Chancellor’s Office for Budget Responsibility’s report it on iPlayer tonight and reliving the moment, because confirms that the borrowing requirement this year was it is something that will live long in the memory. £8 billion less than that forecast by my right hon. Friend I want to talk about the choice that the Labour party the shadow Chancellor in March. Before the Chancellor’s made. What we enjoyed under the previous Labour intervention in the Budget, we were on target for the Government was 11 years of stable economic growth. growth forecast for 2011 of 1.25% that the shadow That was the longest period of stable economic growth Chancellor had made. The OBR admitted that the in this country’s history, yet unlike the Conservatives, shadow Chancellor’s plans for spending restraint over we went into recession only when the entire world went the next four years would have halved the budget deficit into recession. The Conservatives did it differently: they by 2014-15, just as he said they would when he delivered could go into recession when the rest of Europe was in a his Budget in March. strong position. It was only the global economic crisis Uniquely among the main parties, the Labour party that threw the economy off course under a Labour is putting forward policies that we campaigned on in the Government. general election a month ago. This could catch on: we could go into elections telling the public what we wanted Kwasi Kwarteng: Will the hon. Gentleman enlighten them to vote for, and then we could come to this place me on one thing? What does he think the former Prime and deliver those policies. Minister and then Chancellor meant when he suggested that there would be no more boom and bust? Mr Tom Harris: That’s not the new politics. Toby Perkins: What he was probably referring to was Toby Perkins: My hon. Friend makes a valid point: it 11 years of stable economic growth. What he did not probably is not the new politics, but it is something that foresee was that we would be hit by the biggest global political parties should perhaps consider. economic crisis for more than 80 years. Of course, nobody foresaw that. There were no Conservative Members Hon. Members should remember that the previous suggesting that the ways in which our banks were Labour Government were the first Government for regulated would lead to the economic crisis. To pretend many years to start paying off the national debt. The that you knew that that was coming or that the deficit stringent financial rules that the former Prime Minister that has been built up is somehow irrelevant to that is put in place during his long stint at the Treasury put this just ludicrous, and no one believes you, so you really country into the position whereby we entered the recession must stop trying to treat people like fools when you say with the second lowest debt to GDP ratio in the G7. that the deficit that has been created was something that happened just because we had a Labour Government— Jacob Rees-Mogg (North East Somerset) (Con): Is it not the case that the only time when the economy was Mr Deputy Speaker: Order. I ask Members please to run properly under the previous Government was when refrain from using the word “you”, because that means they followed Conservative spending plans in their first me, and the hon. Gentleman has just accused me of three years? saying something that I have not said. Toby Perkins: It certainly is not the case. The hon. Toby Perkins: Please accept my apologies, Mr Deputy Gentleman should remember that in 1997 we inherited Speaker. I shall make sure that I address you and hon. hospitals that were in a disgraceful state and where Members correctly in future. people died of things that they could have been treated It is right to talk about the choice that Labour made, for, if only they had got to the top of the waiting list. which was to protect the jobs that people relied on and We should also remember that we inherited schools to prevent an extra 500,000 going on the dole. Labour’s where the roofs leaked every time it rained. Our children choice was to protect the homes that people had saved were educated in quite disgraceful conditions. That was up over their whole lives to be able to buy. Labour’s the legacy of 18 years of the Conservatives, which is choice was to support industry and bring forward public why when they lost, they lost so massively that they spending projects to keep the construction industry were not even credible as a party for another 13 years. working when the private sector was sitting on its hands. Labour knew that the price of salvaging those Mr Tom Harris: May I congratulate my hon. Friend jobs, those homes and those businesses would be an on a terrific election result in Chesterfield? Does he increase in our deficit. We delivered a plan for the share my bewilderment—and, I have to say, amusement—at recovery, which is working, and a plan for reducing the the efforts by the Chief Secretary to the Treasury and deficit after the recovery had been secured in the following the Business Secretary to claim not only that they were year. The hon. Member for Bromsgrove told us that we wrong to oppose an increase in VAT, but that they have could not keep living beyond our means, but of course miraculously transformed VAT from a regressive tax we already knew that; that is exactly what the shadow before 6 May into a progressive tax now? Chancellor was referring to in the previously attributed quote. He made it absolutely clear what our strategy Toby Perkins: I was certainly bewildered by the Secretary was. of State for Energy and Climate Change’s contribution in opening this debate, and by the idea that when the Jonathan Reynolds: Does my hon. Friend agree that Liberal Democrats talked about the tax bombshell, there is something deeply disingenuous about the fact what they meant was that VAT was regressive only if it that the Conservative party supported our Government was levied on food, a suggestion that nobody had made spending plans until 2008—before the economic crisis and which was never part of the debate. His speech was hit home. They believe that we are living beyond our one of the most bizarre contributions that we have means, but they supported our spending at the time. 519 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 520 Situation Situation Toby Perkins: My hon. Friend effectively anticipates when families are crying out for more help from my speech, for which I thank him. He makes a very wise Government, not less. That will have a knock-on effect contribution. The reality between 1999 and 2008 was on business. The Government seem to think that reducing not that the Conservatives were calling on the Labour the corporation tax burden, already historically low on Government to reduce spending; quite the opposite, businesses, will stimulate growth, without recognising they were complaining about all sorts of things that we that the environment in which businesses trade is the were not spending enough money on—from police to most important part of making a profit. flood defences and all sorts of other things. Now they Taking money out of the pockets of consumers also sit there and say that we should have known all along takes money out of the pockets of businesses. It increases what was going to happen. No one can take what they redundancies and business failures, and it stunts our say seriously. ability to grow our way out of recession. For the hundreds of extra businesses that will now struggle to stay afloat, Matthew Hancock rose— the thought of a cut in corporation tax will merit little more than a mirthless laugh. At every level, the Budget Toby Perkins: Talking of no one taking the Conservatives stunts growth. Cutting the allowances on which seriously, I give way to the hon. Gentleman. manufacturing firms were relying, and replacing them with a corporation tax cut over the next few years, will Matthew Hancock: The hon. Gentleman referred to result in businesses being less likely to invest and more the Labour Government’s plans for significant cuts in likely to focus on bottom-line profits. public spending. Can he give us one single example that The starkest aspect of the Budget, however, was a they have set out? complete lack of a sense that the Liberal Democrats have been a moderating influence on the Tory plans. Toby Perkins: Yes, as the shadow Chancellor made Where were the Lib Dem influences in this Budget? clear, we would have maintained spending over the Seriously, does anyone in the House believe that if the course of this year and put in place a different Budget Budget had been delivered by a Tory majority from that of the Conservatives, along with headline Administration, the Liberal Democrats would have marched measures about what future spending would be. Of through the Lobby and supported it? I will take that as course it was too early for us to have a comprehensive a no. Where was the £2 billion capital gains tax increase? spending review; when the Conservatives were in opposition, It was less than halved. Where was the commitment to did they ever do a comprehensive spending review and restrict tax relief on pensioners to the basic rate? It tell us every line of the Budget they would have carried disappeared. Where was the mansion tax? It does not out? Of course not. That is the reality of the situation. exist. Where were the green taxes? How can one justify a My hon. Friends have pointed out that under the £2 billion bank levy that will be compensated by corporation former Prime Minister the Labour Government led the tax cuts for the banks that caused so much damage? rest of the world to the solution when the global economic Where was the Robin Hood tax on bank transactions, crisis was at its worst. Labour made the choice to which would have brought in more than treble the protect jobs, as I said. Just as Labour made a choice—an amount? ethical and a political choice as well as an economic one—so the Chancellor has made his choice with the Simon Hughes: Will the hon. Gentleman give way? Budget. He did not choose fairness; he chose to gamble. His gamble is based on an ideology that says that the Toby Perkins: I am afraid that I do not have time. growth of the public sector somehow constricts the This was a Tory Budget without a shred of Lib private sector, but it is utterly fallacious to suggest that Demery about it. I will applaud the hon. Member for the success of the one has to be to the detriment of the Colchester (Bob Russell) if he sticks to his guns and other and that the role of Government is to keep taxes refuses to vote for it. The Chancellor had a choice: he low for businesses and keep out of the way. That is the made the wrong choice, and we will all pay a heavy price wrong choice. That is taking a gamble with the recovery for years to come. that Labour was delivering in a stable and managed way. It threatens our recovery at a time when the economy Mr Deputy Speaker: Three Members wish to catch is still fragile. my eye, and I intend to call the winding-up speeches at The choice to increase VAT is, of course, regressive. half-past 5. I am sure that Members will wish to show When even the TaxPayers Alliance denigrates the policy their characteristic generosity in sharing the time. as hitting the poor, we really have to listen. This will take approximately twice the amount from the incomes 5.7 pm of the bottom 20% as it does from the top 20%, and it will stunt growth. That is acknowledged on page 97 of Nick de Bois (Enfield North) (Con): Thank you, the Red Book, so the Chancellor is introducing a policy Mr. Deputy Speaker. I shall do some immediate live that he knows will stunt growth. As a business owner editing to meet your request. myself, I know that this tax will directly remove 2.5% from As a relative newcomer to the Chamber, let me say the bottom line of my firm if it were not passed on to that we need to remember that there is no such thing as my customers. free money. The vast sums that we are discussing have I also know that cuts in corporation tax are not as had to be earned by people, and those same people will important as having a market in which one can make a pay the price for the failed policies of the previous profit. While the VAT cut introduced by Labour in Administration. We should bear in mind the fact that 2008-09 stimulated growth, this VAT increase will take they will be making sacrifices because of Labour’s about £300 out of the average family’s pocket at a time mistakes. 521 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 522 Situation Situation In a former life, I was fortunate enough to be able to according to the FSB report, only 18% of its SME run my own business. During 20 years in the private membership apply for loans, and only 9% are awarded sector, I have enjoyed the ups and downs that go with them. SMEs are being discouraged from applying, and that territory, as well as sharing the challenges and that is distorting the certificates. opportunities that all families face. Given that reality, I recognise that this Budget, and the legacy we have Andrew Bingham (High Peak) (Con): I agree with inherited, will hurt people, and will hurt some in their what my hon. Friend has said about the banks. Will he pockets. Obviously, no Chancellor would wish to give also acknowledge that hard-working counter staff are such a Budget, but it is the one that any responsible being criticised by members of the public although they Chancellor would have to give. are not to blame for the difficulties that the banks have caused? They have been working very hard, and they We are like the receivers coming in to clear up the are being unfairly criticised. chaos left by the previous owners. It falls to us to tell the shareholders, the staff and stakeholders what must be Nick de Bois: I thank my hon. Friend for highlighting done to save them from bankruptcy. In government, that distinction. Indeed, it does not apply only to those Labour Members were always keen to hold company working on the shop floor. Many senior managers are directors to account for their mistakes, and would often clearly being directed to follow a policy which—I am pursue criminal prosecution. I notice that there is not extremely pleased to note from the Budget—we are the same alacrity to do so with the right hon. Members prepared to challenge. The Red Book refers to a review for Kirkcaldy and Cowdenbeath (Mr Brown) and for of the way in which banks should respond to the need Edinburgh South West (Mr Darling). to lend in the future. I realise that Britain needs its In the limited time available, I want to focus on banks, but the banks need to play their part openly and enterprise in the Budget, because my constituents in honestly, and I look forward to seeing that happen. It is Enfield North will welcome steps to protect jobs and a key part of the proposals outlined in the Red Book. create an enterprise environment that can create new This is a necessary Budget. It is a tragedy for our jobs—and why not? Given the 15% annual increase in country that every 20 years or so Conservative Chancellors the number of jobseeker’s allowance claimants under must make difficult decisions and accept public 24 and the 30% drop in the number of vacancies, jobs unpopularity for sorting out the mess left by their are clearly a key issue in our area. opponents. That has now happened again. I dislike By reducing the burden of taxation and regulation, many of the measures in the Budget, but I support them the Budget will give business the confidence to invest in because I dislike even more the idea of our country the long term, which is crucial. The hon. Member for literally going bankrupt. I hope that many of the tax Chesterfield (Toby Perkins) suggested that the tax cut rises that have been announced will eventually be reversed for companies would be of no value and would do as our economy grows over the coming years, but our nothing except, perhaps, create extra profits for those priority now is to stop the country slipping into a spiral involved. That is nonsense. According to a survey of its of debt-driven decline, to rebuild our businesses, and to members by the Federation of Small Businesses, 42 per create jobs and opportunities to turn our economy cent. of small firms will use savings from tax cuts to round. invest in growing their businesses, 20% will use them to employ more staff, and some 22% will try to invest in 5.15 pm new services and products. We must allow our companies Matthew Hancock (West Suffolk) (Con): It is an to invest and, in doing so, create jobs. honour to be able to speak in this debate on what is, by I welcome the benefits to increase the level of business common recognition, a Budget of historic proportions. rate support temporarily for new businesses. We are After the Budget, I bumped into a group of former civil trying to introduce help in the regions, and the exemption servants who were reminiscing about huge Budgets of from national insurance for the first 10 employees will the past and where this one came. They talked about the certainly be welcome. Let me, however, introduce a note 1981 Budget that has been much discussed in this of caution, and ask my colleagues to bear it in mind. I debate, and the 1970 Budget by Iain Macleod that was do not want to see the emergence of a series of phoenix never actually delivered because he died before he had companies that may wish to take advantage of the the chance to give it. Of course they talked about the exemption as an aside. This is not the occasion on big 1950s Budgets of Rab Butler. All those Budgets had which to discuss the merits of phoenix companies, but something in common: they were Conservative, or mostly they have the potential to abuse what is otherwise a very Conservative, Budgets that were clearing up the mess welcome policy. left by a previous Labour Administration. This one of Above all, I welcome the Government’s commitment course is no different. to urging banks to promote small and medium-sized The mess created by the Labour Government has not enterprises in particular. That too is crucial. Many been left at their end. We know from the letter by the people in my constituency and—I declare an interest former Chief Secretary, of which we will no doubt here here—in my own experience have seen the abject failure more, that there is no money left. That only repeats a of banks, some of them owned by the people, in that letter sent in 1964 by Reggie Maudling to Jim Callaghan, regard. Many pursue a twin-track approach: they tell us which said, “Good luck, old cock. Sorry to leave it in that they are publicly committed to lending to SMEs, such a mess.” Here we are at the end of a Labour while in the real world actively discouraging them from Government, once again clearing up the mess. applying for loans. Such disgraceful behaviour should Before we hear too much from Labour Members, we not be allowed to continue without comment. I for one must remember the economic as well as the budgetary will be watching the banks carefully and holding them consequences of former Labour Administrations. Under to account in the future. Their behaviour explains why, the Attlee Administration, unemployment went up by 523 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 524 Situation Situation [Matthew Hancock] Government, and that the bigger argument about turning our economy around and dealing with the problems we 280,000; under Wilson from 1964-70, unemployment face will trump every complaint about an individual went up by 226,000; under Callaghan, it rose by 479,000; problem and each cut. After all, the public are yearning under Blair-Brown, it went up by 460,000. In fact the for a stable and secure economy—we have seen the only Labour Government under which unemployment opposite of that in recent years—and this Budget attempts fell was Ramsay MacDonald’s 1924 Administration. I to deliver it. am not sure that that is one that we should follow or one I strongly believe that the coalition must govern in with which Labour Members would want to agree. the national interest. It must eliminate the structural Those lessons from history teach us several things. deficit. I was surprised by something the shadow Chancellor, One is that memories of the failure of an Administration the right hon. Member for Edinburgh South West run deep. We all remembered for a long time the winter (Mr Darling), said yesterday. He said that Greece of discontent. We now know that the public recognise “took far too long to do what was necessary”, that many of the measures proposed in the Budget are and Labour cuts because they are the response to the legacy “Had they done it in February, when the problems first became that Labour has left. As my hon. Friend the Member apparent, some, although not all, of those problems might have for Enfield North (Nick de Bois) has said, it is a been avoided.”—[Official Report, 23 June 2010; Vol. 512, c. 312.] responsible Government who pick up the pieces following How he can hold that view and also hold the view that the irresponsibility of a Labour Administration who we should not deal with the deficit in this country is sent us into a recession with the largest budget deficit in baffling. the developed world. We must eliminate the structural deficit and ensure Opportunism and oppositionism make life harder in that growth returns by supporting the enterprise package opposition, rather than easier. We have seen so many and the corporation tax cuts and, of course, by stopping times from Labour Members today and in the debate the jobs tax, which was an important part of the Budget. on the Queen’s Speech the pointed finger and heard We must solve some of the long-term problems we face their lists of cuts, with almost no recognition of the such as on public sector pensions—I am delighted that need to deal with the size of the deficit that existed John Hutton will be producing a report on reform of before the election. public sector pensions. There was one exception to this; the hon. Member for Many Members have spoken of the impact of the Streatham (Mr Umunna) made what I thought was an Budget on their constituencies. I know that in my extremely thought-provoking speech. But at the end, he constituency there will be more support for enterprise, accused the Government of having nothing to say about lower corporate taxes on successful businesses, more reskilling and helping the unemployed. He was quite business confidence, which will allow people to create literally stumped and sat down after he was intervened jobs, and lower interest rates for businesses that want to on by the Minister who explained some of the proposals expand. that the Government have put forward to help to lower It is a bold Budget. It is undoubtedly a difficult unemployment and improve skills. At that point, the Budget, but it is the right step for the country, and I speech quite literally disintegrated. We have seen that commend it to the House. repeatedly over the past few days. Vernon Coaker (Gedling) (Lab): On a point of order, Many Labour interventions have been based on Mr Deputy Speaker. Last Thursday, I tabled a written accusations that are groundless. One is that the OBR question for named day answer on Monday of this shows a reduction in growth thanks to the Budget, but week, to which the Department for Education’s response the OBR itself describes the contrast between two of its was that it would reply to me as soon as possible. I had forecasts as misleading. It ignores the effect of the asked it to name the schools that had applied for reduction in interest rates in the international bond academy status, and I read in today’s edition of The markets that has happened since the election because of Guardian that that list is to be published tomorrow, but the anticipated action to deal with the deficit. Those I have as yet received no communication from any interest rates have fallen further today. They are now Minister. I wonder whether at this late stage you have half a point lower than at the election, and the total fall received any request from a Minister to come to the has been more than 10%. That is having a positive House to explain what is going on in respect of naming impact on companies throughout the country. the schools that applied for academy status. As Labour marches to the left, with its lengthy leadership contest meaning that the competition for taking up ever Mr Deputy Speaker (Mr Nigel Evans): I thank the more left-wing positions intensifies, we increasingly find hon. Gentleman for notice of that point of order. I have that there is a lack of credibility. The coalition parties received no such request, but I know that Ministers in are facing up to the seriousness of the situation and successive Governments have worked late into the night supporting measures that may not all be easily palatable. and the list might be being typed out as I speak and We support them because we see the long-term benefit then be delivered to him. I know that the relevant of turning our country around and getting it back on its Minister will want to keep his word, and I am sure that feet. There is no way that a position that lacks credibility, the Government Whip on duty will make sure the and simply attacks every cut and puts forward absolutely message gets through. no alternatives, will be seen by the public as anything other than sniping from the sidelines. 5.24 pm The centre of debate is about how we get through this Kwasi Kwarteng (Spelthorne) (Con): I am very grateful difficult period. Lessons from history also teach us that to you for calling me to speak in the debate, Mr Deputy clearing up this mess is crucial to the success of the Speaker, and I feel privileged to follow my hon. Friends 525 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 526 Situation Situation the Members for West Suffolk (Matthew Hancock) and Chancellor had thought was a scandal, went up to for Bromsgrove (Sajid Javid), who outlined in their 12%. According to the very rules that he set, we have compelling speeches why the Budget is incredibly important. failed and been found wanting. It is in that context that The issue that we have not really focused on enough is my right hon. Friend the Chancellor of the Exchequer the context of the Budget. We all—even Opposition introduced his bold and comprehensive Budget on Monday. Members—accept that the deficit is too large and that It was only because we had to do this that the Budget at some point in this Parliament we have to deal with it. was introduced to this House. It was not part of any The big point of contention between the coalition ideology or master plan; it was an act of dire necessity. Government and the Opposition is how soon we should I thought that the most interesting contribution in grapple with the deficit. the debate was that of my right hon. Friend the Business We forget the fair hopes that we had in 1997 when the Secretary, who recalled with a lot of emotion and then Chancellor of the Exchequer produced his first understanding the experience of 1976. It was exactly Budget, entitled “Equipping Britain for our long-term that experience, when another Labour Government had future”. That was the message that he wanted to send. bankrupted the country and had to go to the International That financial statement and Budget report came out in Monetary Fund, that he was so anxious to avoid. It is in July 1997, and it was in that report that he famously that spirit that the Budget has been introduced to the stated his golden rule: House and that is why I am very happy to commend “The golden rule means that over the economic cycle the this Budget and to go through the Aye Lobby to vote Government will borrow only to finance public investment and for it on Monday. not to fund current expenditure.” So far so good. The second rule was that he would 5.29 pm maintain stable public finances—a requirement for our long-term economic stability. Ms Angela Eagle (Wallasey) (Lab): It is a pleasure to welcome you to the Chair for the first time, Mr Deputy Toby Perkins: The hon. Gentleman will be aware that Speaker. I would also like to add my personal welcome those rules were changed only in the face of huge, to the Economic Secretary to the Treasury; this is the global economic crisis. His party supported the change first time that we have debated over the Dispatch Box when the economic crisis struck, so was it incorrect to since the election, although it is not the first time ever. I do that? hope that she will accept my personal good wishes in the job that she is now doing. Kwasi Kwarteng: The hon. Gentleman will remember I would also like to commend the maiden speeches that the second rule was that that we have heard in the debate today. In particular, I “public debt as a proportion of national income will be held over thank the hon. Member for Staffordshire Moorlands the economic cycle at a stable and prudent level.” (Karen Bradley) for her praise of her predecessor, Charlotte The then Chancellor concluded the 1997 report by Atkins, who is a very long-standing friend of mine. The stating: hon. Lady spoke passionately about her beliefs and her constituency, which I know is a very beautiful one. “These rules will ensure that borrowing will be kept under firm control.” In his maiden speech, the hon. Member for Hendon Everyone applauded him. He was talking about prudence; (Mr Offord) talked about another good friend of mine, he was the Iron Chancellor and very much the hero of his predecessor Andrew Dismore. Alas for the hon. the hour. In the same report, he referred to the recession Gentleman, today’s 12-minute limit on speeches meant of the early 1990s. His conclusion was that the public that he could not even begin to compete with Andrew’s sector borrowing requirement rose to a peak at 7% of record for the longest speech in the House. However, I GDP and he said: am sure that he will rev up and have a go at that. “The Government regards it as important that no similar risks Unfortunately, my hon. Friend the Member for Kingston should be taken with fiscal policy again.” upon Hull East (Karl Turner) is unavoidably absent That was the position of the Labour party in 1997, from the wind-ups tonight. As the successor to Lord and in 2006 Labour was repeating the same mantra and Prescott he has very big shoes to fill, but his maiden the same pie in the sky ideas. It was saying that speech was witty and astute. He spoke about his constituency and his political credo, and I am sure that “public sector net debt is projected to remain low and stable over we can look forward to many more contributions from him. the forecast period”. The final maiden speech was made by the hon. Member In 2007, it said: for Camborne and Redruth (George Eustice), who has “The Budget 2007 projections for the public finances are one of the smallest majorities in the House. He spoke broadly in line with the 2006 Pre Budget Report”, about Trevithick, the railway pioneer; as he did so, I was and so on. thinking about the fact that whenever I return to my own constituency, I travel through Rainhill, where the David Wright: Will the hon. Gentleman outline what famous and historic trials that were won by the Rocket spending he would have cut between 1997 and 2007? took place—an event that brings back many happy memories as we travel to Liverpool Lime Street station. Kwasi Kwarteng: I am merely stating the very prudent We have heard some important speeches today, from rules that the former Chancellor and Prime Minister all sides of the House. One of most intriguing was made outlined. All the rules that he set in place in 1997— by the hon. Member for Bermondsey and Old Southwark [Interruption.] The hon. Gentleman asked a question (Simon Hughes). I shall say more about it later, but he and I want to answer it. All those rules were ripped said some intriguing things about how he might wish to apart. The PSBR figure of 7% of GDP, which the then amend the Budget—particularly with respect to VAT—as 527 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 528 Situation Situation [Ms Angela Eagle] here in the UK were significantly impacted, while spending had to rise to deal with the costs of recession. The fiscal it goes through the House. I certainly look forward to stimulus, which was necessary to stop the global recession seeing the amendments that he may propose. I think turning into a worldwide depression, also had an effect that I shall look on them with a sympathetic eye if they on the deficit. That is the cause of our deficit problem, do what we want, which is to make this Budget more and it is certainly not unique to this country. The progressive than it is at the moment. previous Government were right to take the action that Other speakers in the debate included my right hon. we did to protect people’s bank deposits and to shore up Friend the Member for Coatbridge, Chryston and Bellshill the very foundations of our economic system. I am (Mr Clarke), and my hon. Friends the Members for proud that we were able to rise to that challenge. Telford (David Wright), for Eltham (Clive Efford), for I have taken some time to outline the economic Southampton, Test (Dr Whitehead), for Liverpool, context, in agreement with the pleas of the hon. Member Wavertree (Luciana Berger), for Streatham (Mr Umunna), for Spelthorne, because in four days’ debate on this for Walsall South (Valerie Vaz) and for Chesterfield theatrically named “emergency Budget”, we have not (Toby Perkins). They all made extremely important yet heard any Government Member, from the Chancellor contributions. down, have the decency and the honesty to mention it at We heard some passionate speeches from the Opposition all. They wish the country to believe that, somehow, the Benches, many of which I agreed with very little. However, considerable economic challenges that we now face I can certainly thank the hon. Member for Stafford were all caused by the previous Government’s (Jeremy Lefroy), who was unique among Opposition irresponsibility and have nothing to do with the greed Members in recognising that the Labour Government of reckless bankers and speculators. That is arrant did some good things while in office. I thank him for his nonsense, and they know it. grace in accepting that, although I am not sure that it will do him in any good, or help his career. Mr Mark Field: Does the hon. Lady not recognise The hon. Member for Bromsgrove (Sajid Javid) gave that huge global imbalances built up, and that mistakes the game away when he revealed himself in the Chamber by policy makers and politicians of all colours from as a crusading small-state Conservative, and proud of across the world had their part to play, rather than the it. He praised the Government’s ideological basis, something problem just being caused by, as she would put it, the whose very existence many Opposition Members were greed and recklessness of bankers? frantically trying to deny. There were other important contributions to the debate Ms Eagle: I agree, and during an earlier part of my today, and the short speech by the hon. Member for speech I listed all those people as being among those Spelthorne (Kwasi Kwarteng) was by no means the least who had things to apologise for, as the hon. Gentleman among them. He asked us to look at the context in will see if he reads the record. which the Budget was held, and I want to spend a little In the prelude to the Budget, other preposterous time doing that now. myths have been peddled, designed to justify an austerity We have lived through a difficult time in the last two programme so severe that it is positively, even gleefully, years. We have seen the deepest and most synchronised sadistic. I will just mention one of them in passing. The global recession in living memory, with world GDP myth says, “It’s all much worse than we thought.” We falling for the first time since the second world war as a have heard the Prime Minister, the Deputy Prime Minister direct result of the global credit crunch. That credit and the Chancellor all singing that refrain in recent crunch was precipitated by monumentally reckless and days. They had prepared the ground, they had the greedy behaviour in the banking sector worldwide, which newspapers all going along with it, and they had briefed made a few people spectacularly rich but also impoverished their Back Benchers, who are even now loyally parroting countless millions of its victims around the world. I the line. How irritating for them, then, that the facts thought that the hon. Member for Cities of London have failed to conform to their prearranged narrative, and Westminster (Mr Field) probably came the closest and how positively annoying that the Chancellor’s new of all Government Members to being up-front about forecasting quango—the pejoratively named Office for that in his extremely good speech. Budget Responsibility—should so comprehensively give the game away just before the main show. It quickly The credit rating agencies, which are now so frequently became clear that, far from all this being much worse quoted by Government Members with reverence as than we thought, it was actually better: economic oracles, were particularly compromised by the triple A rating that they awarded to complex derivatives “embarrassingly, the economy is just not playing along. Things just keep getting better.” masquerading as assets when they were in fact debts, and they did so for lucrative fees. The credit crunch was I was quoting Fraser Nelson—that well known socialist exacerbated by the undoubted failure of politicians, writer—from the Telegraph. policy makers, economists and regulators to understand and price risk appropriately in the complex and Dr Julian Huppert (Cambridge) (LD): Will the hon. interdependent global market. That led to a degree of Lady give way? complacency and the misreading of international conditions that were shared by almost every economic commentator. Ms Eagle: The hon. Gentleman has not been here all Hindsight is a wonderful thing, and with the benefit of day, so I will not give way to him. it we can learn many lessons to prevent those problems In the pre-Budget report, Sir Alan Budd was obliged from recurring—I certainly hope that we do. to point out that my right hon. Friend the shadow Meanwhile, fiscal deficits everywhere had to rise Chancellor was being too pessimistic—those who know dramatically to cope with the crisis. Our tax revenues him are not always surprised by that—and that on 529 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 530 Situation Situation almost every measure, the public finances are in better, It has taken a mere two days for the pitifully thin Lib not worse, shape than we expected at the time of the Dem veneer attached to the Budget to flake off completely. March Budget. Unemployment, Sir Alan revealed, would The Lib Dem leader promised us “progressive cuts”, be 200,000 lower than expected, and tax revenues would but the devastating analysis of the IFS has put paid to be much stronger than forecast. Thus the borrowing that absurd and oxymoronic phrase. When we take out forecast was £8.4 billion lower this year than predicted Labour’s remaining Budget changes, this Budget is deeply in March, and £22 billion lower by 2014-15. regressive, and it gets more regressive as the years go on and the huge cuts in welfare support and tax credits Matthew Hancock: Will the hon. Lady give way? bite. It is now clear what the Deputy Prime Minister means by progressive cuts: he will cut this year, cut more next year, and cut even more the year after that. His Ms Eagle: No. phrase is true, when it is taken literally. No amount—[Interruption.] Conservative Members A Budget that targets £6 billion of cuts on the most have had all day to peddle their view of what is happening vulnerable, including pensioners, by delinking benefit to the economy. I am now responding to that, and they uprating from the retail prices index, yet hits banks with have to sit and listen whether they like it or not. only a £2 billion levy that is being given back through No amount of Orwellian double-speak emanating corporation tax, is not sharing the pain. A huge hike in from No. 10 or No. 11 can cover up the basic fact that VAT that hits the poorest hardest is not sharing the things are not worse as far as the deficit is concerned, pain. A deliberate decision to destroy large swathes of but better. Shorn of the prearranged excuse for ratcheting social support, and cutting support for the jobless and up the pain levels in his austerity Budget, the Chancellor home owners when they are most under pressure, is not has been exposed as a small-state ideologue and a true sharing the pain. The choices in the Budget make it child of the 1980s. He has imposed the most brutal cuts abundantly clear that we are not all in this together. in public spending that the country has ever experienced Today’s Financial Times carries an article that states: in peacetime for reasons of dogmatic delusion, not “Ministers warn that they may have to tear up some untargeted economic necessity. The Tories are doing this not because welfare promises—such as the £4bn spent on subsidising bus they have to, but because they want to. They have made travel, winter fuel and television licences for older people…One a political choice, not an economic choice, and we will minister said that such a move was ‘almost certain’”. see the results of their return to their Thatcherite roots. The hon. Member for Bermondsey and Old Southwark said today that he would not allow that to happen. Well, There is no electoral mandate for the economically if he wants to stop that betrayal, he has to table those dubious dance with dogma that is at the Budget’s intellectual amendments and carry his Lib Dem colleagues through core. The majority of the electorate voted for parties the Lobby with us to stop this Conservative-led Budget that did not want to make immediate cuts at a time doing even more damage. We look forward to seeing when the recovery was not locked in and our major EU him in there with us. trading partners were seeing their upturns falter. Those who voted Lib Dem did not expect their chosen party to 5.45 pm experience a wholesale conversion to Tory fiscal hawkery The Economic Secretary to the Treasury (Justine after a quick cup of tea with the Governor of the Bank Greening): Mr Deputy Speaker, may I start by saying of England. They feel betrayed—and they have been. what a pleasure it is to give my first speech as a Minister Make no mistake: this is a very Tory Budget. It with you in the Chair? I thank the hon. Member for contains the largest spending cuts in our peacetime Wallasey (Ms Eagle) for her kind words. I very much history, focused on the neediest areas of the country. It enjoyed debating with her when I was the shadow brings about a huge rise in the most regressive tax Minister and I look forward to continuing to do so in available, which will hit the poorest hardest. The decision government. to attempt to eliminate an 8% structural deficit in five We have had a good debate this afternoon and evening. years, and the choice of a ratio of 77% spending cuts to It was broadly meant to be about the Budget in relation 23% tax rises, are more brutal than Mrs Thatcher ever to the environment, but we have not heard a lot about dreamed of. The Chancellor has paraded Canada and that, apart from in the thoughtful speech made by the Sweden as examples to follow, but as Will Hutton hon. Member for Southampton, Test (Dr Whitehead). recently pointed out, the plans for fiscal consolidation The hon. Member for Eltham (Clive Efford) said that in the Budget are three times tougher than those achieved there is little on the environment in the Budget, but in Sweden and twice as tough as the Canadian example. given that the Labour Government had stalled on reducing Sweden took 15 years to achieve 20% cuts in some emissions and wanted to go ahead with polluting measures departmental spending, but this Tory-led Government such as a third runway at Heathrow, I am not surprised want to cut 25% in five years. that the shadow Secretary of State for Energy and The lesson from Japan is that it is positively dangerous Climate Change failed to mention the environment in to attempt radical fiscal consolidation when the private the half hour that he was on his feet. sector is deleveraging, so why are the Government I wanted to start by reflecting on the many speeches— prepared to risk making the same mistake? Because of 23 or 24, by my count—made today, in particular some its error, Japan experienced a lost decade of growth and excellent maiden speeches. I was delighted to hear from achieved the opposite of its intentions: not a shrinking my hon. Friend the new Member for Staffordshire deficit, but an increasing one. The Budget contains no Moorlands (Karen Bradley), especially when she said strategy for growth beyond the usual tired old Tory that she is an accountant. Speaking as an accountant refrain that the private sector will fill the gap. That is myself, I think that this House needs more of us, and I not a growth strategy, but a statement of blind economic dare say the Opposition could do with a few more as faith that might or might not be fulfilled. well, so that they can start adding up properly. 531 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 532 Situation Situation [Justine Greening] from the British public at the last election was that they want a constructive debate about how to solve the deep We also heard a great maiden speech from my hon. financial crisis that our country faces. We have had Friend the new Member for Hendon (Mr Offord). I nothing from the Opposition. No alternative is being remember his predecessor—indeed, I think I was present presented to all of the measures that were raised as in the Chamber during that very long speech he made. concerns by Opposition Members. I presume that we If it is the one I remember, it was about animal welfare can now start ticking them off as measures that the and lasted more than two and a half hours. On that Opposition would say a Labour Government would occasion, the hon. Gentleman said how sad he was that take. We will rapidly reach the conclusion that there are his dog had died, and I intervened at one point to ask no measures that the Opposition would take to solve whether the dog had died of boredom. He said that it this deficit. After all, they were happy to cancel their had not. spending review, and now they are happy to play no role The new hon. Member for Kingston upon Hull East in having a constructive debate with the public and the (Karl Turner), who is no longer in his seat, made a Government about how we dig ourselves out of this really good maiden speech. I hope he does not go mess. It is simply not true to say that the Opposition around hitting people like his predecessor did, but his had no role in it. We were running a deficit long before predecessor was certainly a colourful character, who the global crisis hit. That is why we went into the brought his own personality to this place. We will see recession first, that is why we came out of it later, and whether the new Member for the constituency can that is why our recession was deeper. We have now had match him. the longest and deepest recession since the second world I thought the maiden speech of my hon. Friend the war under the Labour Government. We need take no Member for Camborne and Redruth (George Eustice) lectures from them. was excellent, especially when he talked about how it is often individuals—their drive, initiative and creativity Matthew Hancock: Does my hon. Friend agree that in working to tackle climate change and developing new the Labour party’s views tend to be based on technologies—who make all the difference. We should misrepresentations? For instance, I think that the shadow never forget—we on this side of the House certainly do Minister said that according to the Office for Budget not—that it is individuals who make the difference, not Responsibility on almost every measure things were always Government alone. The latter theory has been better, but on the crucial measure of the size of the tested to destruction by the Labour party. structural deficit, which is the measure that will not We have heard a number of other speeches this come back with economic growth, things are worse, and afternoon, not least that of the shadow Secretary of that justifies the position that the Government have State for Energy and Climate Change, who seemingly taken. failed to mention anything about the environment. I have to say that the public watching the debate and Justine Greening: My hon. Friend is absolutely right. hearing all the contributions from Labour Members Let us just talk about the Office for Budget Responsibility. would not have thought that they had just been through I still cannot quite work out whether the Opposition an election that they lost. It is as though they have support it. I am happy to take an intervention from the learned nothing. They have not even paused to reflect shadow Secretary of State to clarify that. We are none on the message that they have just been given by the the wiser. British people. They have handed over to this coalition On the point about changing forecasts, and the OBR Government an absolute basket-case of an economy, forecast pre-Budget and its forecast on the Budget, let and what we have heard from Labour Members today is me be clear about what it said about comparing those what we heard when we were in opposition: they always two forecasts. If the Opposition have any shred of know better. They knew better in government and now credibility, I hope that they will pay attention to this. At they know better in opposition. They know better than the bottom of page 94 of the Red Book it says it is: the British Chambers of Commerce, which said “misleading to interpret the difference between the pre-Budget “The Chancellor’s message that Britain is open for business and Budget forecasts as the economic impact of the Budget will be welcomed by companies the length and breadth of the measures.” country, and across the globe”. The Opposition want it all ways. They want to quote They know better than the CBI, the Federation of some figures and, as my hon. Friend says, conveniently Small Businesses, the Governor of the Bank of England, forget the key figure, which showed that the structural the G20 and the EU, which says that countries such as deficit was worse. They want partially to welcome it ours need to get on faster with reducing their fiscal warmly, but to ignore what it says about the impact of deficit. comparing false statistics. They do the debate, which is Clive Efford: Would the hon. Lady care to comment important for people throughout the country as we go on a quote from the right hon. Member for Wokingham through an incredibly difficult process, a real disservice, (Mr Redwood), who urged people hit by budget cuts to because the British public need them to play a role, wear more clothes, turn down the thermostat and eat which should be for them as the Opposition to come up more vegetables. Is not that just about the most damning with some constructive comments. It would have been indictment of the Budget that we could have, from one better if they could have come up with some kind of an of her own colleagues? alternative, but we have had none today. We need take no lectures from the Opposition about Justine Greening: The hon. Gentleman continues in fairness. This is the party that did a pensions raid. This the vein that the Opposition have adopted today, which is the party that came up with the 10p tax fiasco. This is is to try to score cheap political points. The message the party that widened the gap between rich and poor. 533 Budget Resolutions and Economic 24 JUNE 2010 Budget Resolutions and Economic 534 Situation Situation This is the party that told us we had an end to boom better. Greece has gone one step further and, effectively, and bust. It is no wonder the savings ratio in Britain has the bailiffs knocking on the door. went down. If people had listened to the right hon. Our Budget was all about ensuring that we do not Member for Kirkcaldy and Cowdenbeath (Mr Brown)— reach the position where the bank manager says that he who knows where he is now?—they would never have is going to raise interest rates on us. We as a nation thought that they needed to save for a rainy day. The cannot afford it, and British households cannot afford British people get it, because they have started paying it. We definitely do not want to reach the stage where we down their debts, but the Opposition parties have totally have the bailiffs knocking on the door, which is what missed the point. They seem to be living in a post-election has effectively happened in Greece. I am concerned, bubble, and they have not taken a moment even to however, because in spite of everything that has happened reflect on what has happened or on the verdict of the in our country, including the election and the state of British voters, let alone to reach the stage at which they our public finances, we have still not heard a meaningful might apologise for the mess that they handed over to debate from the Opposition. the coalition Government. The two parties in government have taken the decision that they need to work together Dr Whitehead: As the subject of today’s debate is for the British public’s interest in order to find a resolution supposed to be energy and climate change, I wonder to our crisis, and to get ourselves out of this financial whether the hon. Lady has anything at all to say about mess. the extent to which the Budget might facilitate a recovery towards a low-carbon economy, or whether, as I suspect Toby Perkins: The hon. Lady has referred to the the case may be, she does not. election result a couple of times, but we remember the election result in 1997 after a long period of Conservative Justine Greening: I am pleased that the hon. Gentleman Government, when that party lost so badly that it was has given me the chance to finish on that subject, out of power for 13 years. If people were so dissatisfied because I wanted to take the time to talk about the with the Labour Government, how come the Conservatives environment in the context of the Budget. could not even secure a majority? We have said that we are determined to make progress on setting up a green investment bank; we have talked Justine Greening: The hon. Gentleman, if he is not about ensuring that the green deal works, because it is careful, might be projecting the political fate of his own critical that our housing stock be made more party. With this Budget, we want to ensure above all else environmentally friendly; and, of course, the final piece that we start addressing our country’s dire financial of the Budget was about ensuring that we can move to a situation. By the end of this Parliament, we will have low-carbon economy that does not just put our energy started to return to a sustainable set of public finances strategy on a more sustainable footing, but includes the which puts us in a position to make sure that our debt is jobs that can be part of the green enterprise economy more affordable. He might think it acceptable that the that we want to set up. average taxpayer pays almost £1,400 in interest to service the debt that his party racked up, but I do not, and over The hon. Gentleman was right to raise the matter, a period of years we want to get into a position where because too often the issue of climate change and the our debt is affordable once again. The process will not environment has been exclusive—the idea being, “If be quick; it will take us time, because of the gravity of you can afford to save the planet, you can do it.” We the situation. want to make sure that everybody in our country is able to be part of tackling climate change. That is why the Let us make no mistake: we have no time to wait. green deal and the green investment bank are so important. Before the election, we had only to look across the The supply side of technologies is critical in ensuring water at some of our European partners to see what was that these markets can get the finance they need. I can happening to their countries. I shall draw an analogy, absolutely assure the hon. Gentleman— because in Spain the equivalent of the bank manager—the markets—said that they simply were not willing to lend 6pm to that country at the same rate of interest as previously. That debt now costs Spain’s taxpayers millions of pounds The debate stood adjourned (Standing Order No. 9(3)). more in interest than it did when their credit rating was Ordered, That the debate be resumed Monday 28 June. 535 24 JUNE 2010 English Language Schools 536

English Language Schools I see in his place my hon. Friend the Member for Cambridge (Dr Huppert). He wanted to intervene in Motion made, and Question proposed, That this House this debate, but the Chair is of the view that we should do now adjourn.—(Mr Newmark.) not breach that convention. I know that these schools are very important in Cambridge too, as well as in 6pm Poole and in Brighton. I also see my hon. Friend the Conor Burns (Bournemouth West) (Con): It is an Member for Grantham and Stamford (Nick Boles), honour to give my first speech in this Chamber as the who is hoping to make a brief contribution to the new Member of Parliament for Bournemouth West—a debate. new constituency that should more accurately be called Why am I raising this subject now? It has become a Bournemouth West and Poole East, because it includes problem because of what the previous Government did wards from the constituencies of my hon. Friend the in their dying months of office. Immigration became a Member for Poole (Mr Syms) and the hon. Member for rising political topic as we got closer to the general Mid Dorset and North Poole (Annette Brooke). I thank election, and the previous Government, in an attempt the Speaker for giving me this opportunity to deliver a to be seen to be doing something, did the old civil maiden speech in an Adjournment debate, which I service Sir Humphrey thing: “We must do something; understand is a slight breach of the conventions of this this is something, so let’s do it.” They changed the House. criteria on the requirement for competence in the English I believe that I am standing in the same place as language that was needed for someone to come to another new Member who breached convention some Britain to study English. They also changed the student 50 years ago—Margaret Thatcher, who delivered her visa arrangements so that such a person had to return maiden speech when introducing a private Member’s to their country of origin to extend their visa. Bill. I told her on Saturday that I was going to do my I wish to draw attention not just to the question of maiden and had waited 50 days to do so, and she told the English language schools and the employment that me that it was over time to be getting on with it. In fact, they generate in Bournemouth and Poole, but to the in researching this speech, my team found out that Lady welcome additional earnings in the household budgets Thatcher waited more than 100 days; I shall point that of the host families who welcome students into their out to her on the next occasion that I see her. home, and to the boost to the local economy when I will, if I may, say a word about my predecessor, students’ family and friends come to visit, stay in local Sir John Butterfill, who served this House for 27 years. hotels and use local restaurants. Professor Fletcher of During that time, he piloted four private Members’ Bills Bournemouth university has estimated that they contribute into law, which, I imagine, must be something of a more than £200 million to the local economy in the record: the Registered Homes (Amendment) Act 1991, Bournemouth and Poole area. the Insolvency Act 1994, the Policyholders Protection Then there is the matter that one probably cannot Act 1997 and the Building Societies (Funding) and quantify: those who have come to Britain to learn Mutual Societies (Transfers) Act 2007. I hope that English have a great affection and affinity for Britain Sir John will have time to reflect, in a good way, in the which will stand our country in great stead in the years months and years that lie ahead on the totality of his ahead, when they return and enter businesses. The right 27 years of service in this place, and not just on the hon. Lord King visited me during the election campaign difficult period in the run-up to the last general election. and relayed the story of an Egyptian Defence Minister I suspect that it must also be unusual for a new who, on his first night on a visit to Britain, did not want Member who represents a constituency that has only to go out to dinner with the then Secretary of State for ever had four Members of Parliament to be able to pay Defence because he wanted to go and see his old landlady, tribute not only to my predecessor but to my predecessor’s for whom he had great affection. We cannot put a price predecessor, Lord Eden of Winton, who joined me, on such things, but they are of enormous benefit. with Bournemouth’s member of the Youth Parliament, The previous Government were right to recognise Jasminn Osborne, on the campaign trail in Bournemouth that there was a problem with some bogus schools, and during the last general election. Lord Eden has now they put in place measures to try to deal with them. served for 27 years in the other place. Prior to the introduction of the points-based system, it I bring to the House today the subject of Britain’s was estimated that up to 50,000 students could be using English language schools and the enormous contribution the student visa system as a way of staying in the that they make to the economy of the United Kingdom. United Kingdom illegally. In April 2009 they introduced More than 500,000 students a year choose to learn the new system, which forced schools to gain Government English in Britain. That figure accounts for almost accreditation and led to the closure of several thousand 43% of all students who choose to travel abroad to bogus language schools. Great strides were made in learn English. It is estimated that they contribute more tightening up the system. than £1.5 billion to the UK economy every year. It is On 12 November 2009, only months after the system appropriate that we talk about this in the context of the was put in place, the then Prime Minister ordered a Budget that my right hon. Friend the Chancellor introduced review of it due to concerns about those coming in to earlier this week. We have been talking about diversifying study at below degree level. The hon. Member for the UK economy, away from sole reliance on the financial Oldham East and Saddleworth (Mr Woolas) said about services sector, and this is a massive export for our that on 11 December 2009: country and a contributor to the bottom line. “I would like to make it absolutely clear that no firm decisions Bournemouth has, I suspect, more language schools as to whether and what changes ought to be made to Tier 4 have per head of population than almost anywhere else in yet been taken. The responses we have received from all parts of the country. However, not only Bournemouth has them. the education sector have suggested that there is the potential for 537 English Language Schools24 JUNE 2010 English Language Schools 538 some of the broader review questions to affect the UK’s attractiveness There is a point to make about the number of students as a destination for study if they are implemented. Damaging the who come to the United Kingdom, learn English in the education sector is not the aim of the review.” language schools and progress to higher education. My However, the reality is that the outcome of the review constituency of Bournemouth West contains the whole has done just that. of Bournemouth university, which was rated by The I wish to go into some detail about what the change Guardian—I give The Guardian credit; I would not to the English language requirement has done. I shall normally do that—as Britain’s No. 1 new university. It quote a letter from my right hon. and noble Friend has a regular flow of new students from Bournemouth’s Lord Eden, who posed a simple question to my hon. language schools who move on to degree-level qualifications. Friend the Minister for Immigration on 20 May. He I hope that the Under-Secretary of State for the wrote: Home Department, my hon. Friend the Member for “The simple question that needs to be answered is how are Old Bexley and Sidcup (James Brokenshire) will students that are coming to this country to learn English supposed acknowledge that we do not operate in a vacuum. There to be able to qualify in English language proficiency in order to is global competition for language schools. Obviously, receive a student visa?” people can go to New Zealand or Canada, and if they It is not just a very basic understanding of English that want to learn to speak English badly, they can go to they require. The definition of B1 competence, which is America. The principal relationship is between the agents the equivalent of about an A* GCSE, is that a student who place the students and the schools. Those agents can are now considering the difficulties that face students “understand the main points of clear standard input on familiar who come to this country and are already exploring matters regularly encountered in work, school, leisure, etc. Can relationships with language schools in other parts of deal with most situations likely to arise whilst travelling in an area the world. If we allow the relationships to be severed, where the language is spoken. Can produce simple connected text we will inflict a terrible and grievous wound on the UK on topics which are familiar or of personal interest. Can describe English language schools sector. experiences and events, dreams, hopes & ambitions and briefly give reasons and explanations for opinions and plans.” I hope that the Home Office will continue to review It seems to me that if someone is able to do all that, they the changes that the previous Government implemented. are pretty fluent and would not necessarily need to We can learn much from other countries and how they enrol themselves on an English language course. We are handle matters. I am not standing here simply to complain saying to students, “Learn English so you can qualify to about the previous Government’s actions because that come here to study and learn English in Britain.” It is is futile. The coalition has an opportunity to review painfully ridiculous. much of that and find other solutions. For example, we could move to a bond system—I know that my hon. The other matter on which problems arise for the Friend the Minister for Immigration examined that language schools is their dealings with the UK Border before the election—whereby the student pays an up-front Agency. Institutions and students have found it difficult sum of money, which would make absconding much to communicate with the agency. One student trying to less likely. We could have an assessment level, whereby negotiate the application process said they had found we examined the risks posed by students from particular that the risk countries, and we could have a classification system, “UK staff provide conflicting information or are unable to answer whereby we perhaps relaxed the rules for others. queries regarding classification of guidance which does more than simply repeat the existing regulations.” The changes that the previous Government made are Hon. Members might recognise some of that in another having a profoundly worrying and detrimental effect on organisation with which we have had dealings in recent businesses in my constituency and throughout the country. weeks closer to home, but I shall not derail myself by I hope that the Under-Secretary will examine all the going into that. alternatives because we can be proud of the English language schools sector. The English language is one of The UK Border Agency failed to carry out any our greatest assets. English is the language of world impact assessments before implementing the changes, commerce, and if we shut off the ability of those and that was extremely damaging. Under pressure from schools to thrive, to welcome people to our shores and its flawed system in April 2009, it was obviously anxious to enable them to immerse themselves in our language, to be seen to be robust and proactive, but that meant our culture and our values, in time we will look back increasing frustration on the part of the English language and realise that we made a very fundamental mistake. schools, which are now responsible under the licensing arrangements for their students’ whereabouts. One college Several hon. Members rose— in Bournemouth, Anglo-Continental, which is led by Guido Schillig and has existed since the 1930s, gave an Mr Deputy Speaker (Mr Nigel Evans): Order. Has the example of that. Guido Schillig is responsible for his Minister been notified that the hon. Member for Grantham students’ whereabouts, yet the UK Border Agency would and Stamford (Nick Boles) or any other Member wishes not tell him whether a student had arrived in the United to speak? Kingdom. The situation is grossly unfair. My hon. Friend the Minister for Immigration met a The Parliamentary Under-Secretary of State for the delegation of local language schools. My hon. Friend Home Department (James Brokenshire): Two other hon. the Member for Poole can probably enlighten the House Members apart from my hon. Friend the Member for about that if he contributes to the debate shortly. My Grantham and Stamford (Nick Boles) have spoken to hon. Friend the Minister for Immigration said that the me. I have indicated that, with your consent, Mr Deputy previous Government had used a sledgehammer not Speaker, I would be happy for them to speak in the time simply to crack a nut but to smash entirely the wrong allowed, if the hon. Member for Bournemouth West object. (Conor Burns) is also content with that. 539 English Language Schools24 JUNE 2010 English Language Schools 540

Conor Burns indicated assent. I had a debate at the end of the previous Parliament on the same topic. It is vital that we get a quick Mr Deputy Speaker: I call Mr Boles and ask that hon. resolution to the problem, before students are diverted Members make short speeches with no interventions to other schools and this country loses millions of please. pounds, loses jobs and loses a great opportunity for what is a world-beating industry, if we remove the 6.15 pm bureaucracy. Of course we need a firm immigration system, but it has to be fair, and we have to be fair to the Nick Boles (Grantham and Stamford) (Con): Thank language schools so that they can do their business. you, Mr Deputy Speaker. I should first apologise for my croaky voice: I spent rather too much of yesterday 6.18 pm afternoon shouting at the television. Dr Julian Huppert (Cambridge) (LD): I will be extremely I congratulate my hon. Friend the Member for brief. I pay tribute to the hon. Member for Bournemouth Bournemouth West (Conor Burns) on what was, frankly, West (Conor Burns) for securing this debate and making a very classy maiden speech. I hope that it will be the an excellent speech. I want to add my support, because first of many conventions that he will overturn. I also the problem is serious in Cambridge and elsewhere. My declare an interest, in that I have spent, it seems, quite a hon. Friend the Member for Eastbourne (Stephen Lloyd) lot of the past six months helping a young Israeli friend has tabled early-day motion 140, which is about English of mine try to navigate his way through the bureaucratic, language schools and has attracted a lot of support. Kafkaesque nightmare that is the process of applying I hope that the Minister will deal with the problem for a tier 4 general student visa—and it is just that: a seriously. English UK estimates that there are 3,500 jobs Kafkaesque nightmare. at stake, with £400 million in schools and £1 billion in Like my hon. Friend, I support the Government’s universities, plus the advantages to the households that attempts to restrain excessive immigration, which has look after the people involved. I look forward to hearing been such a problem in recent years, and in particular—he the Minister’s comments. described this in more detail—the attempt to crack down on abuses by cowboy colleges and gangs that 6.19 pm abuse illegal immigrants’ desire to get into this country. The Parliamentary Under-Secretary of State for the However, I believe that the previous Government’s approach Home Department (James Brokenshire): Let me say was wholly misconceived. Instead of focusing ruthlessly what a pleasure it is to take part in this debate and to on closing down the cowboy colleges that are colluding have listened to the excellent contribution from my hon. in fraud, they resorted to a process of ever-shifting Friend the Member for Bournemouth West (Conor bureaucratic meddling, in order to make the application Burns). Although his maiden speech might have been process as complicated as possible. unconventional in terms of procedure in this House, it I would like to give a specific example. I believe that I was impressive in style, considered in content and have a reasonable command of my mother tongue. I impassioned in delivery. He has shown very clearly by also have two degrees from moderately okay universities— his contribution to the debate what an excellent Member one in this country and one in the United States—but it of Parliament he will be for his constituents in Bournemouth took me literally hours to help my friend fill out those West. I wish him all success in the House. I have no forms and understand the supporting documentation doubt at all about the contributions that he will make in that was required. the months and years ahead. I will give hon. Members one example. Any student I also thank my hon. Friend the Member for Grantham has to demonstrate—quite rightly—that they have enough and Stamford (Nick Boles) for his contribution. He funds to maintain themselves while they remain in the highlighted a particular case, and although it is difficult UK. The current requirement is for them to produce a to draw conclusions from one case alone, we certainly bank statement showing that they have the funds in heard what he had to say and I am sure that, if he their bank account back home for 30 days. That is fair provides any further details either to me or to my hon. enough—I do not think that any of us would complain Friend the Minister for Immigration, we will look into about that—but the bank statement has to be stamped those matters. I also thank my hon. Friend the Member by the bank, even though it is a statement from the for Poole (Mr Syms) and the hon. Member for Cambridge bank. However, the statement does not have to be just (Dr Huppert) for their contributions. We recognise the stamped by the bank; it has to be signed by the bank importance of language schools and I hope to address manager. And that is not all: the statement also has to some of the points that they raised. list the equivalent amounts in the account in sterling, I should also mention that, in a sense, this is my and applicants can use only one website for that. maiden speech as the hon. Member for Old Bexley and Sidcup. It is rather unconventional to be speaking from My hon. Friend has made the point that English is the Dispatch Box in that context, but I am proud to our greatest asset and our greatest competitive advantage. represent Old Bexley and Sidcup and I will do my We must change the system, so I hope that my hon. utmost to fulfil the responsibilities that my constituents Friend the Minister will do what he can to help. have placed on me. Although I may not always be able to speak in this Chamber on the full range of topics on 6.18 pm their behalf, I will certainly do my utmost to fulfil my Mr Robert Syms (Poole) (Con): I congratulate my duties and to ensure that any matters of concern to hon. Friend the Member for Bournemouth West (Conor them are properly addressed and dealt with. Burns) on making a characteristically strong case for Let me say at the outset that, as my hon. Friend the his constituents. He will be a powerful advocate for his Member for Bournemouth West is aware, the English constituents and I look forward to working with him. language schools in his constituency—and in the 541 English Language Schools24 JUNE 2010 English Language Schools 542 constituencies of my other hon. Friends in their places permission to change institution. We do not think that this evening—are involved in challenging by judicial that is inappropriate, as migrants should keep in contact review some of the changes identified tonight, particularly with us and we need to know if they are no longer the minimum level of language study permitted under studying, as they will be in breach of their student tier 4. That case is ongoing and is due to be heard next conditions. week, so I hope that my hon. Friend and others will Although colleges might find it frustrating that the appreciate that I may be somewhat limited in my responses UK Border Agency does not routinely inform them on certain points raised this evening. when a student has entered the UK—this point was The Government are committed to attracting the raised directly—it is simply not practical when we consider brightest and the best to the UK, which is why we are the millions of arrivals at our ports and airports each determined to encourage legitimate students to come year. Institutions will know when their sponsorship has here for study. The UK is the second most popular been used in a visa application and they will know when destination for international students—second only to their student is expected to arrive. If a student does not the United States. We must therefore ensure that our do so, it is this exception that must be reported to the immigration system does not inhibit the education sector, UK Border Agency and we will then check whether the which we recognise has to compete in an increasingly student is in the UK and in breach of his or her competitive global market. conditions. At the same time, we need to ensure that our overall The difficulty remains, however, in identifying those immigration system works to prevent abuse, so the bogus students who have no intention of studying in the Government are now taking the necessary steps to set a UK, but simply seek a route of entry. Such so-called new direction in immigration policy, built on the students have no qualms about deceiving bona fide coalition’s core values of freedom, fairness and education providers to obtain an offer of a place on a responsibility. We face a number of challenges, however, course that will go some way to securing their entry to in delivering a safe and strong border, which are made the UK. Such economic migrants tend to target courses even more pressing by difficult economic times. Immigration that have little in the way of pre-entry requirements, must be properly controlled, so that people can have and English language courses have proven to be particularly confidence in the system. Our intention to introduce susceptible to abuse by non-bona fide students. Between new measures to minimise abuse of the immigration April and November 2009, UK Border Agency data system, including abuse of the student routes, is a show that almost a third of English language schools priority that was outlined in the coalition’s programme licensed under tier 4 voluntarily notified UKBA of for government. more than 1,100 students who had failed to enrol or I do not ignore the fact that the English language who had dropped out of their course of study. industry contributes millions of pounds to the UK’s economy every year. As my hon. Friend rightly pointed The tier 4 student visa can be very attractive to out, English language schools in the UK provide economic migrants because of the generous entitlements jobs for their staff, while students spend money on that such visas rightly provide to those who wish to fees and books, and generate additional income for study here. The ability to work part-time during term their host families. The English language is a global time and full-time during vacations, and to bring family language, and we are, of course, keen to promote the members to the UK, are two important privileges that UK as the home of English. We are also acutely aware help us to compete with other countries and attract the of the part played by English language schools in brightest and the best to study here. However, the preparing overseas students for further and higher education Government are committed to ensuring that such privileges in the UK. are not abused. We must therefore be sure that there are sufficient safeguards in place to ensure that the tier 4 However, in the past there has been significant abuse requirements are not so abused. of the student route, with the previous Government ignoring repeated warnings of the scale of abuse by Data collected since the launch of tier 4 showed a bogus students and bogus colleges for a number of surge in the number of applications made under the years. Bogus students were often found applying with route, which was certainly a significant change. That forged documentation, not taking up their course of increase, coupled with students who had secured entry study or dropping out part way through, and working under tier 4 but failed to enrol on their courses or too many hours. The UK Border Agency dealt with ceased their studies early, painted a worrying picture. bogus colleges that would engage in simple fraud, such For that reason, changes were introduced from March. as not delivering courses as advertised, if at all, and As hon. Members will have heard, the minimum level of collaborating with bogus students to facilitate their language study permitted under tier 4 is level B2 of the entry to the UK—in some cases, falsifying education common European framework of reference for languages. certificates to allow bogus students to prolong their stay That means that students must be at least proficient to in the UK. level B1 before they can use tier 4 and enjoy the entitlements that the route confers. Students whose English language Since the launch of the register of education and ability is not at that level are still permitted to come to training providers by the former Department for Innovation, the UK to develop it, using the student visitor route, Universities and Skills in January 2005, more than which allows a person to come to the UK for up to six 300 bogus colleges have needed to be removed from months. that register. The introduction of tier 4, the student route of the points-based system, along with sponsor Without wishing to pre-empt the outcome of next licensing, has gone some way to addressing the problem week’s judicial review hearing, the Minister for Immigration of bogus colleges. Under the new system, students are intends to undertake a thorough evaluation of the tied to their sponsoring institution and must seek our student system in the coming weeks and months, to 543 English Language Schools24 JUNE 2010 English Language Schools 544

[James Brokenshire] education system and to take away knowledge, skills and a sense of our culture, which they can then put to ensure that the measures currently in place strike the good use in their home countries. right balance between providing a user-friendly route Question put and agreed to. for bona fide students and education providers and keeping out those who would seek to abuse the student system. Let me be clear: the Government want to encourage 6.30 pm genuine students who seek to benefit from our world-class House adjourned. 145WH 24 JUNE 2010 Local Media 146WH

parliamentary career. That is very welcome, particularly Westminster Hall as Parliament gains powers and responsibilities under the coalition Government. Thursday 24 June 2010 I am grateful for the Select Committee’s emphatic support for local and regional media—above all, local journalism. Westminster Hall is full of quality today, [MR JOE BENTON in the Chair] but I had anticipated more quantity, in terms of the number of hon. Members present. I say that because debates on the local media give all in this House a Local Media chance to praise our local newspapers and local media [Relevant documents: Fourth Report from the Culture, organisations, in a desperate attempt to curry favour Media and Sport Committee Session 2009-10 HC43-I, with them. In fact, during the four Westminster Hall and the Government response thereto, Cm 7882.] debates in which I participated as a member of the Motion made, and Question proposed, That the sitting Opposition, I went out of my way to praise my local be now adjourned.—(Miss Chloe Smith.) newspaper, the Wantage and Grove Herald. In response, I am delighted to say that it put details of my expenses on the front page and campaigned vigorously for an 2.30 pm independent candidate to stand against me. Mr Joe Benton (in the Chair): I call Mr Ed Vaizey. So let me instead use this opportunity to praise [HON.MEMBERS: “Hear, hear!”] Oxfordshire’s JACKfm, a local radio station that is enormously successful. To be serious for a moment, The Parliamentary Under-Secretary of State for Culture, JACKfm won two awards this week at the Arqiva Olympics, Media and Sport (Mr Edward Vaizey): What commercial radio awards. [Interruption.] I think that a great pleasure it is to open this debate under your my hon. Friend the Member for Shipley may indeed chairmanship, Mr Benton. I thank hon. Members and have been present at the awards ceremony. JACKfm hon. Friends for their early support for my remarks, won two awards. The first was for Ali Booker’s “Cancer which may have been heard as “noises off”. [Laughter.] Diaries”. Ali Booker is a constituent of mine, who is a very well known local personality and radio DJ. She has Mr Don Foster (Bath) (LD): On a point of order, been recording her battle with cancer on JACKfm and Mr Benton. I apologise for interrupting the Minister. it has been an extremely moving and highly popular Would it be in order for hon. Members to take off their programme. JACKfm also won the commercial radio jackets? station imaging award. I must confess that I am not quite sure what an “imaging award” is, for a local radio Mr Joe Benton (in the Chair): I see nothing wrong station. with that, as long as they have a decent shirt on. [Laughter.] I also want to thank Arqiva for sponsoring those commercial radio awards. I am a huge admirer of Mr Vaizey: Thank you, Mr Benton, for that important Arqiva, although our relationship is somewhat strained ruling, which was effectively ex post facto, as I noticed at the moment, because my local television antenna in that Opposition Members had already pre-empted it. Oxfordshire, which was built by Arqiva to enable the digital television switchover, unfortunately caught fire This is an important debate about a very important and burned down as it was being erected. That has issue—the future of our local and regional media—and affected the local television coverage of many of my I am delighted that we will have the opportunity in the constituents. A new antenna is being built, but it will next three hours to examine in detail the landscape not be erected until September and I am in constant before us and the opportunities that we could have to dialogue with Arqiva about the situation. reinvigorate local media and, through local media, local communities and local democracy. I wanted to use the opportunity of this debate to talk I am delighted to see so many important members of about some of the themes highlighted in the Select the Culture, Media and Sport Committee here today. Committee’s report, in the light of the Government’s Towards the end of last year, the Select Committee approach to this vital part of the media landscape. As I issued a very important report on local media, and the am sure all hon. Members will agree, we have a fine Government have recently responded in some detail to tradition of excellent journalism, provided at a range of it. That response is now available at the Vote Office and levels through a wide range of media. That tradition is I am sure that all hon. Members present will have read it as important at the local level as at the national level. in some detail. Indeed, survey data from Ofcom indicate that four in five people rate local news stories as very important. As is clear in our response, the Government welcome Although they were tragic, awful and unprecedented, the Select Committee’s in-depth investigation and analysis one thing that emerged from the terrible events in of the issues affecting local media—indeed, we broadly Whitehaven recently was how important the local newspaper agree with most of the Committee’s conclusions. I must had been. say, albeit in his absence, that I have been a great admirer of the hard-working Chairman of the Committee, Indeed, I remember the floods in Oxfordshire in July my hon. Friend the Member for Maldon (Mr Whittingdale), 2007, when BBC Oxford radio became an incredibly and of one of its more articulate members, my hon. important source of local information, with people able Friend the Member for Shipley (Philip Davies), who has to ring in to the station to talk about the situation on had a strong and independent voice in Parliament and the ground. As a result, the radio station became a vital looks set to continue to have one for his foreseeable hub of local communication at a time of crisis. 147WH Local Media24 JUNE 2010 Local Media 148WH

[Mr Vaizey] may have to consider. However, it is also incumbent on the Government to ensure that there are no barriers to Independent journalism and news distribution have a enterprise—we made that point again and again in clear and vital role in democracy at every level. In an opposition—and to provide the necessary independence international report on the newspaper industry, published and vision to enable a commercially successful and by the OECD last week, the industry was described as: publicly valuable local media economy to develop. In “a pillar of public life and pluralistic, democratic societies”. that regard, we have stood still for too long, even in the face of the vast changes that I have mentioned. I recommend that hon. Members read that excellent report, if they can. To put a finer point on it, as the That is why, as a coalition Government, our priorities Select Committee said in its report: in this area are to find ways to improve local media provision, and to enable the development of partnerships “The importance of reporting on local institutions and local democracy cannot be overstated; without it there is little democratic across the local media landscape. As elements of local accountability.” media increasingly converge through digital means, it is vital that we see the landscape as interlinked, so we have Democratic accountability has never been more to be active across all areas. That means a programme important. As we roll back power from the core to the of action across television, newspapers, radio and the periphery and from central Government to local internet. government, and as we empower local government and local people to take more and more decisions, reporting Importantly, we do not think of the issue as a zero-sum on those decisions, or on the environment and climate game—we are not going to be moving the deckchairs in which those decisions are made, will be a vital role for about on the deck of the Titanic. As I said earlier, even local news sources. in the face of the downturn, we know that the digital age presents real opportunities to grow and strengthen For example, we intend to introduce locally elected local media. There are opportunities to support the police chiefs. It will be vital for local newspapers and plurality of news, hold local government to account, local media to participate in the debate on that issue. strengthen democracy, participate in and lead debates, We also intend to have elected NHS boards, to give new and aggregate data at a local level. There are also powers to councils, to publish local Government spending, opportunities to reconnect people with the work of and to unlock local and national Government data. their local voluntary and community sector, with job That presents a huge opportunity for the local media in opportunities and local businesses, and with getting hold of that information, leading the debate or neighbourhoods. providing a forum and platform for important debates at the local level. We believe that the issue can be dealt with without straightforward subsidy. In fact, we take the view that As my right hon. Friend the Secretary of State for Government patronage can be a problem—it can create Culture, Olympics, Media and Sport, has said: dependence and threaten impartiality. Local media should “This government is committed to…giving local communities far be given the opportunity to become commercially viable greater control over their own destinies…But for this to happen and sustainable in the long term, but they should also we need strong local media to nurture a sense of local identity and have commercial and editorial independence from the hold locally-elected politicians to account.” very institutions that they are meant to scrutinise. However, as the Select Committee report makes clear, So what does such an approach look like in action? there are significant challenges ahead for our media. First, my right hon. Friend the Secretary of State Newspapers have been particularly hard hit. A report recently announced that we are going to implement the last week—I think that it was the OECD report to recommendations that Ofcom put forward at the end of which I referred earlier—noted a projected 26% fall in last year. We will therefore significantly relax local overall UK print advertising revenues for 2009, the cross-media ownership regulations, and I hope that that steepest fall in Europe. Since 2004, regional newspapers relaxation will be in place by the end of this year. have faced a much steeper decline in circulation than However, we would like to go further, which is why we national newspapers. Not only newspapers, but local have asked Ofcom to look at the scope for removing radio and regional TV news programmes face significant the remaining rules and what the implications of that structural challenges—shifting to meet audiences online, would be. developing effective new advertising models and carrying If any barriers to local media growth and sustainability the burdens of onerous ownership restrictions. Those are to remain, we want to be absolutely clear about have been exacerbated by the cyclical pressures brought whether they are necessary. Local journalism and the about by the current economic climate. local media economy will benefit from more permeable It is obviously important for the industry to adapt to boundaries between different types of media. That will the changing economic and technological environment help to achieve greater economies of scale, to follow and, in debating this subject, we should not lose sight of consumers as they move between platforms and to the fact that these are, by and large, commercial companies develop innovative ways of communicating with audiences. that were able to make substantial and significant profits Secondly, we have a commitment to building a strong in the pre-internet age. It is therefore only right that broadband network in the UK. Broadband also has a they, as commercial companies, should be prepared to crucial role to play in supporting local media. As I have adapt and change their business models in a very different already pointed out, media at every level—national, technological climate. regional and local—are converging online, and local I was interested to note, for example, that yesterday media’s ability to connect with audiences will increasingly the Evening Standard announced that it has started to depend on fast internet connections. We want to ensure move into profit after having adopted a free distribution a basic universal service and to explore ways to introduce model. Those are the kinds of changes that newspapers super-fast broadband in rural and urban areas. We will 149WH Local Media24 JUNE 2010 Local Media 150WH work to accelerate the roll-out of super-fast broadband, Mr Vaizey: The hon. Member for Bath (Mr Foster) particularly by using existing infrastructure—the pipes wants to answer the question, so I am tempted not to and poles in every neighbourhood—to improve fibre-optic answer it, and simply to leave him to deal with it when access. he speaks. However, I should mention a number of points. First, I have always been against top-slicing the Mr Tom Watson (West Bromwich East) (Lab): Will BBC licence fee to fund other broadcasters, because the Minister do me the honour of defining the term that is the thin end of the wedge. We have one publicly “super-fast broadband”? supported broadcaster in this country, but once one starts top-slicing, one effectively creates a second, and possibly a third. Mr Vaizey: As the hon. Gentleman is fully aware, I have answered a parliamentary question on that point, I do not say that ITV is calling for top-slicing, but I and I refer him back to the answer I gave him some say to any broadcaster that might still be calling for it to days ago. be careful what they wish for, because the BBC operates under a number of constraints and in a very public climate, and that is something that other broadcasters Mr Foster: As some of us have not had the opportunity are, to a certain extent, free from. We do not think such of seeing the answer, would my hon. Friend the Minister an approach is the way forward, but we believe that we be kind enough to tell all hon. Members what that have an answer for my hon. Friend the Member for answer was? Shipley (Philip Davies), and that is the third strand of our policy after deregulation and laying the infrastructure Mr Vaizey: As the hon. Gentleman knows, I am for super-fast broadband, the definition of which is in against Government waste, and it seems pointless to Hansard. repeat that answer here when it has already been printed in Hansard. I will write him a letter explaining what my Mike Weatherley (Hove) (Con): I feel that I am definition of super-fast broadband is, but it certainly missing out on some of the definitions here. May I, too, does not involve the word “megabit.” please receive the Minister’s letter about the definition We have always been clear that the previous Government’s of super-fast broadband? plans for independently financed news consortia were the wrong way to go, and we opposed those plans from Mr Vaizey: I am delighted to welcome my hon. the beginning. We understood why the previous Friend, the new Member for Hove, who has had a Government wanted to put the measures in place: it was distinguished career in the film industry. I went down to their answer to the challenge of sustaining regional Hove to support him during the election and got into news. There is a legacy from the process that they trouble with the Daily Mirror as a result, but I will not started, in that it kindled innovative ideas among local go into that. I like to think that my visit contributed media companies. Indeed, my understanding is that substantially to my hon. Friend’s impressive victory, many of the consortia that formed as a result of that and I will certainly drop him an e-mail about my policy will continue to work together to look at ways of definition of super-fast broadband. taking their ideas forward. We hope that by, for example, relaxing the cross-media ownership rules, they can follow After deregulation and broadband roll-out, the third a deregulatory path, rather than the subsidy path, to strand is our major announcement on strong public-service bring their ideas to fruition. local television. Bizarrely, this country has had no real local television. As I am sure right hon. and hon. We always felt strongly that the issue of subsidy Members will point out, when they turn on their local focused consortia on the best way to get access to the news it is, in effect, regional news, and regional news subsidy, as opposed to the best way to engage with can be wholly irrelevant to one’s local area. As an viewers. That is why we opposed subsidies, and why we Oxfordshire MP, I am used to getting news from took an early decision not to go ahead with the pilots. Southampton and other places, which are fantastic, but The savings made from not going ahead with them will the news is not entirely relevant to where I live. Things go into providing super-fast broadband, a definition of are very different in America and western Europe, where which is available in Hansard. local television thrives. A local television network, enabled by a new regulatory regime, could form a core plank of Philip Davies (Shipley) (Con): I agree with much of local journalism and local democracy in a thriving what my hon. Friend has said, but does he accept that in multi-platform local media ecosystem. If the hon. Member places such as Yorkshire, ITV regional news—the news for West Bromwich East (Mr Watson) wishes to put programme there is called “Calendar”—is incredibly down a parliamentary question, I will give him a definition popular, and that there is great demand for it? Will he of multi-platform local media ecosystem. think again about the obvious solution that would help The Government’s focus is on making new local organisations such as ITV carry on with programmes media models commercially viable. We believe that local such as “Calendar”? That solution is to top-slice the television has the potential to revitalise local media BBC licence fee. The BBC gets more and more money markets with new cross-media models, and as a new every year—so much money that in most years, it does platform for reaching local audiences. Before I go into not know how to spend it. That money could be given further detail, I want to stress that regional news will to an organisation such as ITV to do something worth remain, for both ITV and STV, an obligation on the while, such as providing real competition within regional channel 3 licence holders. Our vision for local TV is in news, which is much enjoyed in places such as Yorkshire. addition to existing regional news services. We are looking at the potential for existing public-service content providers Mr Foster: No. in the nations and regions to play a role locally. 151WH Local Media24 JUNE 2010 Local Media 152WH

Mr Watson: I have not had the chance to read in I enjoyed sparring with the hon. Member for Hammersmith detail the Minister’s vision for a multi-platform local (Mr Slaughter) on the subject of the role of Hammersmith media ecosystem and for public service TV. Does he and Fulham council’s local newspaper. I got the impression acknowledge that some commercially independent that he was driven less by principle than by a concern newspapers would be wary of a further extension of that the newspaper might cost him his seat. Now that he local TV if it distorts a market in which they are already has won a seat that the Conservatives may have expected finding it difficult to operate? Can he reassure them? to win, he may take a more objective view of the newspaper’s role. The Secretary of State for Communities Mr Vaizey: I am happy to reassure them; we see local and Local Government will bring forward a consultation newspaper groups as having an opportunity with local on the impact of local authority newspapers on the television. It is important to make the point that many local press in the very near future. of our local newspapers are owned by national or It is also important to address specifically the Culture, multinational companies; they are not produced with a Media and Sport Committee’s points on local radio. In photocopier in someone’s back room, but are part of a particular, the Committee praised the role of community substantial business. The Government think that there radio, and I am delighted to echo that praise. Community could be a huge opportunity there, not just because of radio has been a huge success story, and a lot of the the quality of the journalism, which is obviously very credit goes to the previous Government for how they high and we should not lose sight of that—it reaches its nurtured it. Towards the end of the previous Parliament, peak in the Wantage and Grove Herald, owned by I was on a Committee that further deregulated community Newsquest—but because local people tend to identify radio. In the run-up to digital switchover, which remains closely with the brands. We continue to see opportunities a firm commitment of the coalition Government, it is there. important to acknowledge that there is, again, a significant On introducing local television into this country, part opportunity for community radio, in that more of the of the opportunity for local television comes about FM spectrum should be available to community radio because of the changes in technology that have decentralised stations so that they can broadcast to local communities. production and reduced costs, and because we have new I have covered quite a large area of ground in substantial flexible means of reaching and interacting with audiences. detail. I am grateful that not too many hon. Members I have already talked about the convergence of different intervened on me. I look forward to hearing the speeches media platforms online, which, again, makes this an of the Opposition spokesman—the right hon. Member exciting opportunity. for Exeter (Mr Bradshaw)—and other hon. Members We have asked a chap called Nicholas Shott, the head during the two and a half hours that we have to debate of UK investment banking at Lazard, to examine the this subject. potential for commercially viable local television stations and to look at what the barriers are, what incentives are Mr Joe Benton (in the Chair): I call Mr Ben Bradshaw. needed and what we need to do to make local television a central part of a thriving local media ecology. On the Mr Ben Bradshaw (Exeter) (Lab): Forgive me, Mr Benton, basis that if one announces something in Parliament, it but I understood that I would speak towards the end of will not get into the public domain, I want to tell right the debate. I can then respond to hon. Members’ points hon. and hon. Members in complete confidence that we before the Minister sums up. have appointed a steering group to support Nicholas Shott. That may be in the newspapers in a few weeks, Mr Joe Benton (in the Chair): If you prefer, you may but I will tell Members in confidence now. The group do so. I call Mr Tom Watson. includes the media analyst, Claire Enders; the venture capitalist, Brian Linden; the former GCap director, 2.59 pm Richard Eyre; and the Labour peer, Baroness Kingsmill, the former head of the Competition Commission. They Mr Tom Watson (West Bromwich East) (Lab): It is a have agreed to work with Nicholas Shott on his report, pleasure to serve under your chairmanship, Mr Benton, which is due in the autumn, to take things forward. and to give a speech that I did not know I was going to There is work to be done. deliver when I entered this cavernously empty Chamber. Given that we have two and a half hours together this Mr Watson: I apologise for hogging the Minister’s afternoon, I would like to use the opportunity to praise time. Have the terms of reference for the review been the Minister and congratulate him on his appointment. published in the House? If they have not, could he He is a noble and elegant member of the Government, facilitate that? and I am looking forward to working with him when I can, scrutinising him in infinite detail and helping him Mr Vaizey: I am not entirely clear—I cast a panicked to do his job to the best of his ability. It is good that he look at my officials—whether those terms of reference has published the response to the Select Committee’s have been published. I cannot see any reason why they report last year on local media, but I suspect that it has should be confidential. I imagine that my right hon. only just gone to the Table Office. He is new to his job, Friend the Secretary of State for Culture, Olympics, so I shall not be pedantic and complain about that, but Media and Sport has sent a letter to Nicholas Shott he will understand that we have not had time adequately explaining in detail exactly what the Government hope to read the report and respond to it. Perhaps we will he will examine in the next few months. have a chance to do so in another forum. A number of other points arose from the Culture, The figure that worried me most in the Minister’s Media and Sport Committee’s report that are worth speech was that from the OECD of a 26% fall in print covering. It focused on the impact that local authority advertising revenue this year. That illustrates the huge newspapers might have on local newspapers. In opposition structural problems that local, regional and national 153WH Local Media24 JUNE 2010 Local Media 154WH media face in the United Kingdom. They are structural and checking facts can manage transformation in the because of the internet, which is the most disruptive digital space, but it must understand the power of its technology for many centuries. It is hackneyed to say brand. that it is as disruptive as the Gutenberg press, but it is The Minister referred to the Wantage and Grove important that we, as policy makers, understand some Herald, which mistakenly made an editorial decision to of the characteristics that the internet gives us when put his expenses on the front page. How would a responding to the challenges in local media. I hope to newspaper respond to that? The country’s biggest-selling sketch out a few of my concerns in that area. regional newspaper—the Express and Star—is in my The Minister talked about advertising revenue as a constituency. It is—dare I say it?—a classically run prime example of why advertising models for newspapers newspaper with strong news values, and when one turns are now in such trouble. A great man called Craig a page one knows whether one is reading a news story Newmark, who invented Craigslist, looked at the classified or a comment piece; it does not have editorialised new ads in American newspapers and thought they created pages. Editorially, it backs a political party—the Minister’s an imperfect marketplace because people could not find party—but its news coverage is studiously impartial. It all the goods that they wanted to purchase, and people refuses to take off-the-record or unattributed briefings; trying to sell goods could not find all their potential everything is on the record. When it makes a mistake, it purchasers. He found a digital solution and founded apologises and puts it right. When I appeared in the Express and Star Craigslist, the vast majority of which offers free classified accused of claiming for a 69p pair of advertising. Having started his endeavour with no idea rubber gloves and a tree surgeon, it apologised and put of how he would make the model pay, he created a small the matter right by explaining that it was in fact my revenue base, based on advertising real estate in selected neighbouring MP who had made those claims. That is Express and Star American cities. Craigslist is one of the biggest and why the has managed to stand up most successful global websites. against some of the forces that have been unleashed in local newspapers better than others. It has strong values Craig Newmark understood the power of network which result in a loyal readership. growth, which is killing newspapers’ revenue models Another matter that newspapers should understand today. We are almost in a commune of despair when it is the power of communities. They could collaborate comes to considering how we can retain a strong, rigorous with their readership more than they have. We all take local news base in the UK. None of us has the answers part in some form of collaboration. Most hon. Members to the hugely disruptive models that the internet gives have columns in our local newspapers, and it is far us. The lessons that we, as policy makers, must learn is: easier in a digital age to build a more participative if we do not have the answers, let us not make it harder relationship with readers. I hope that the Government to find them. One thing that worries me—my position is will play a role in helping to facilitate that. probably slightly ironic in my party—is that if one does In our report, we did not discuss in depth whether not know an answer, the regulatory models that are there is a role for the Government to provide not a then devised may make the problem worse, not better. I technology fund, but technology advice to old-school hope that in years to come, the one thing that we can newspapers in the analogue sector moving through the share an interest in is trying not to be too prescriptive transition to the digital age. Perhaps one of the most with our regulation. worrying parts of the mix in the newspaper industry The two Front Benches will probably be in despair at now is that when it has had to cut back, it has done so my wittering on about the Digital Economy Act 2010, on news journalism to such a degree that it cannot cut but I believe that if we are honest with each other, it the staff any more, so it is turning on higher-paid managed the politics of decline for some of the old technologists and making it harder to handle the digital publishing models that are now completely challenged age. If the Government have a role in partnership, it and almost washed away by the internet. Governments could be in the technology sector. must sometimes step in and protect industries that are I cannot end my rather rambling contribution without transforming themselves, and that is fine, but I suspect referring to the report’s reference to the Hammersmith that the Act has made it harder, not easier, for publishers newspaper. What united both wings of the Committee to find solutions. was that we were almost stupefied that a local authority could produce a weekly newspaper containing pizza The simple truth of the internet is that scarcity cannot advertising and—I will not refer to cranky religious be enforced, as used to be possible in print media, and advertising—all sorts of dubious advertising without local newspapers have found it difficult to find solutions. any social policy on that. The only people from the There are some things that communities do on the council who were allowed to appear in the pages of the internet from which lessons can be learned. It enables newspaper were the elected Conservative cabinet councillors; people easily to form groups. They may coalesce around the poor Conservative back-bench councillors were not a brand, a journalist or a newspaper group, so that what even allowed a voice. The paper had such a dominant a newspaper does and its component parts are vital to place in the local market that it would be impossible for its future success. A classic example is the Daily Mail’s a commercial rival to set up and produce an alternative Jan Moir, who chose to write a vicious article that form of news. It could not possibly have held the local resulted in 25,000 complaints to the Press Complaints authority to account. Commission when people uprose digitally and formed a community. I believe that harmed the Daily Mail brand. Philip Davies: I support what the hon. Gentleman A good pioneering local newspaper that distinguishes says. Does he agree that it is bad enough when local itself in a niche market by being the only creator of authorities use local taxpayers’ money to pay for local news and has a track record of integrity, honesty propaganda when it is clearly labelled as propaganda, 155WH Local Media24 JUNE 2010 Local Media 156WH

[Philip Davies] liver cancer. She is quite seriously ill and she was, most recently, taking Herceptin, until her consultants discovered but it is even worse when local authorities such that it was causing heart failure. The only drug now as Hammersmith and Fulham produce newspapers available to her is relatively new. It was recommended full of propaganda that masquerade as independent by her consultants, but it has not, unfortunately, gone newspapers? through the final stages of approval by the National Institute for Health and Clinical Excellence, so she is Mr Watson: Yes, the hon. Gentleman is right. In an being denied access to this life-saving drug. I am delighted article in The Daily Telegraph last week, the Secretary of that my local newspaper is running a campaign to gain State for Communities and Local Government complained support for her and that my secretary’s local MP, the about the cost of envelopes in local government. Far be hon. Member for North East Somerset (Jacob Rees-Mogg), it from me to give the Minister advice about his privatisation is supporting her. plans, but the paper in Hammersmith and Fulham is Local newspapers, local radio and local media overall one local authority paper that could adequately be are clearly important, and they provide all the things privatised. That would do us all a democratic service, that I have described. They also provide a training because it would then hold elected politicians to account. ground where many people can develop their media On the consultation, I hope that we have a serious skills before moving to more regional or national discussion about how we can give local authorities newspapers. Given the emphasis that the coalition proper boundaries and show them what is and is not Government place on localism, it is critical that we democratically acceptable, because some authorities have find ways of supporting and defending local media so inadvertently or deliberately crossed a line that needs that they can carry out important checks on what defining. It is fair to say that all the members of the happens locally. Committee entered the inquiry thinking that old newspapers were bleating about local authority newspapers, but As we have heard from the Minister, there are many when we looked at the issue in depth, we were pretty problems. The local media industry has been contracting shocked. I hope the Minister will be able to work with for the past five years. Thousands of jobs have been lost colleagues in other Departments to do something about in regional and local newspapers, and 25% of jobs are that, because it is not fair. With that, I will conclude, being cut in local papers. Sixty titles were cut last year which should give my right hon. Friend the Member for alone, and more jobs and titles will potentially be lost. Exeter (Mr Bradshaw) adequate time to wrap up over Reference has also been made to ITV, where something the next two hours. like 1,000 jobs have already gone in the regional news service. More than half of local commercial radio stations are now loss-making, and the industry’s total revenue 3.11 pm has gone down dramatically—by nearly a quarter—in Mr Don Foster (Bath) (LD): It is a great pleasure the past few years. Its audience share has also declined. to follow the hon. Member for West Bromwich East The Minister has given us some of the reasons for (Mr Watson) and to serve under your chairmanship, what has happened. Of course, it is largely to do with Mr Benton. The debate gives me the opportunity formally the recession and, therefore, the fall in advertising revenue. to welcome the Under-Secretary of State for Culture, However, there has also been a move to new platforms, Olympics, Media and Sport, my hon. Friend the Member not least on the internet—an issue to which I will return for Wantage (Mr Vaizey), to his post on the Front shortly. If we believe that something needs to be done, Bench. the real question is what we are going to do about these We are discussing a really important issue. The Minister issues. I am delighted that the coalition agreement rightly recognised that we all had an opportunity to makes clear reference to the coalition Government’s namecheck our excellent local newspapers. He did so desire to with the Wantage and Grove Herald, and I certainly “enable partnerships between local newspapers, radio and television want to do the same for my own paper, The Bath stations to promote a strong and diverse local media industry.” Chronicle, which is now, sadly, a weekly rather than a daily. The Bath Chronicle, the Wantage and Grove Herald The question is how we do that. I want to make a and all other local newspapers are important in ensuring number of suggestions to the Minister and to pick up the accountability of our local councils and other public on some of the points that he and others have made. bodies, and they are a focal point for the community. Let me start by saying that it is critical that we Sometimes they do interesting things; the Minister gave understand the important role that the BBC plays, and us the example of the coverage of his expenses. About that we make it clear that we would do great damage to eight years ago, when The Bath Chronicle was a daily, local, regional and national media if we followed the the letters page included a letter complaining that there advice of the hon. Member for Shipley (Philip Davies) were too many photographs of Don Foster in the and top-sliced the BBC’s licence fee. That would undermine paper. I was delighted that the paper chose to illustrate the BBC’s independence—something that I am delighted the letter with a quarter-page photograph of me, with a the Secretary of State, in his recent speech on these banner underneath saying, “Too many photographs?” issues, made clear the coalition Government are not Local newspapers and the local media—radio and so prepared to do. The minute we allow top-slicing at the on—also act as good vehicles for important local campaigns. BBC, the corporation will be constantly looking over its Let me just say on a serious note, and with a degree of shoulder to make sure that it is not offending the personal interest, that the front page of today’s edition Government of the day, and its independence from the of The Bath Chronicle includes an article about my Government will be lost. I have to tell the hon. Gentleman part-time secretary in my constituency office. This lady that I strongly oppose top-slicing and I hope that that has had breast cancer and bone cancer, and she now has will be the view of the coalition Government. 157WH Local Media24 JUNE 2010 Local Media 158WH

Philip Davies: If that is the case, and top-slicing Mr Foster: That is obviously a matter for subsequent undermines the BBC’s independence, is the hon. Gentleman announcements that the Minister will no doubt make. I saying that the BBC’s independence suddenly disappears do not want to second-guess him. I have already hinted in the months and years before the charter and the that the Government would be wise to give careful licence fee agreement come up for renegotiation, because consideration to the sixth purpose of the BBC. That the BBC is looking over its shoulder and thinking about could happen in combination with several other measures what the Government might do? that would help to drive up demand, which I shall come Mr Foster: The hon. Gentleman makes a fair point, to, and that would incentivise the commercial companies— but two wrongs do not make a right for a start. He Virgin, BT and others—to act, for their own benefit. should look carefully at the BBC’s current role, because There are ways forward. there are ways of involving the BBC—I will come to The other television organisation that has been mentioned this in more detail in a minute—in developing things is ITV, which has been a catalyst for debate because of that we need to support local and regional media. The its decision to reduce regional television. Many people BBC’s sixth purpose, for example, includes responsibility have been deeply concerned about that. There is a new for helping to develop platforms on which BBC programmes management team, and ITV seems at least willing to will appear. The most obvious example currently is the consider maintaining present regional TV levels, rather roll-out of high-speed broadband, the definition of than making further cuts. The decisions have not yet which we will receive shortly when we get our letters been made. However, certain things should be done to from the Minister. That is an important example. Under provide support to ITV.Ofcom is already looking at the its existing charter obligations, the BBC could be expected airtime sales rules, and we shall have to wait for the to provide even more support through such activities. outcome. It is considering—I would hope it would do it The hon. Gentleman is also well aware that the BBC rather more urgently—the issue of minutage, particularly has recently developed an even more vigorous approach in peak time. However, there is a key area in which it is to the concept of partnership. It is working with others important for the coalition Government to find a solution: in all parts of the media to provide forms of mutual the problems currently caused by the contract rights support. That work benefits the BBC, but it also supports renewal situation. That is a fetter on ITV’s opportunity others. That is another area that we need to do more to develop a rational approach to the sale of advertising. about in future. I fully appreciate the difficulties, although it is not Recently the biggest area of support, collaboration appropriate to go into them here. I hope that the and partnership has been in developing a key part of Minister will make some reference to the issue and give the solution to our current problems; that is the development a commitment that the Government will do all they can of Project Canvas. I am sure that all hon. Members to find a solution, perhaps working with colleagues in present are aware that while we debate the BBC Trust is the Department for Business, Innovation and Skills. making a final decision about whether to allow the BBC The Minister has mentioned something else that will to go ahead with it. I hope the trust will allow it, be helpful for local and regional media—the reduction because it will be a key driver in solving many of the of regulation of cross-media ownership. The Secretary problems that we have described. of State referred in his speech at the Hospital club to Ofcom’s recommendations, and an agreement to proceed Mr Bradshaw: Before the hon. Gentleman moves with those, but he said he wanted to go further, and if away from the question of the BBC and top-slicing, possible to remove the rules altogether. Of course he have not the Government announced that they intend rightly entered a caveat, saying that we must bear in to do exactly what he so decries, in that they have said mind monopoly situations, which would be a matter of they will fund super-fast broadband, whatever that concern to us all. I hope that the Minister will be willing means—one assumes it must be more than 2 megabits to consider, in addition to monopolies, the other side of post-2014—from the licence fee? That can only mean a the coin: all our deliberations—on all mergers—should continuation of top-slicing post-2014. include a public interest test. On some occasions a Mr Foster: The right hon. Gentleman should know public interest test would suggest going ahead with better than to ask me of all people that question, something even if it would lead to a monopoly. We because he knows only too well that the previous should introduce such a test not just for cross-media Government identified the underspend from the digital ownership but for monopolies. That is a possible approach. switchover money, which was provided for the targeted There is a problem for the coalition Government and help scheme. That was ring-fenced and was not going to we should make no bones about it. The two parties in be used for any other BBC activities. I was highly the coalition started their approach to independently critical of it; it should never have been there. That is a funded news consortia from different positions. The very different proposition from taking money from the Conservative party was opposed to them and the Liberal BBC’s operating funding. It was a separate fund. The Democrats wanted to go ahead with the three trials. previous Government were going to use it for one set of The coalition agreement states that we shall not go purposes, and the coalition Government are going to ahead, and I support that because of the Minister’s use it for other purposes. On a judgment call as to who clear acknowledgment that although they were not is right, I believe the coalition decision to use it for the necessarily the right way forward, valuable lessons had roll-out of high-speed broadband is right. The right been learned from the work that was done in setting up hon. Gentleman was going to use it in part for independently the potential trial areas. The question for the coalition funded news consortia. Government is whether to grasp the opportunities of Mr Bradshaw: If we are only talking about the those lessons and find ways to take them forward. underspend from the digital switchover before 2014, I mentioned Project Canvas. With that, people will be how will the coalition fund super-fast broadband able to sit in front of their televisions and see programmes after 2014? that come from satellite, free-to-air or, effectively, their 159WH Local Media24 JUNE 2010 Local Media 160WH

[Mr Foster] May I point out to the hon. Gentleman our regret over the dropping of the IFNC plans? There is a sense computer, via broadband. It would then be perfectly of urgency within the industry, and as secretary of the possible to develop a model of local television, which National Union of Journalists group I have stood up the Secretary of State and the Minister are interested in time and again in virtually every debate we have had developing—I support them in that—through an internet over the past 18 months on the matter to demonstrate protocol television route. That would be one potential that sense of urgency. I suppose that what I am trying to model. We could then bring into partnership local and get across to him is that if he is offering an alternative regional newspapers, local radio stations and other model, it would behove him to put as much pressure as interested groups, and many others in the creative industries, he possibly can on the coalition to bring his proposals in developing programmes. A model could be developed forward rapidly, before we lose even more jobs in the that could provide truly local television, which would industry. support the other parts of the local and regional media industries. That would bring something of real interest Mr Foster: I hear what the hon. Gentleman says. In to communities, and would be a sustainable model. the most appropriate way that I can, given the rather strange circumstances that we all find ourselves in, I shall offer several suggestions in a friendly and supportive Mr Watson: The hon. Gentleman will not be able to way to the Minister who has responsibility in this area. I answer this, because none of us has an answer, but hope that I have done exactly what the hon. Gentleman although I follow the logic of his argument, is not the has asked of me. advertising revenue model from which organisations now work finite? What he suggests might load greater I have two more quick points before I conclude. The obligation and cost on to local news organisations first, which is about local radio, is a plea to the Minister. without an increase in revenues to cover it. It will not fall on deaf ears, because I know that he shares my view on this: we must have a clear route map for digital radio switchover, as quickly as possible. It Mr Foster: I hear what the hon. Gentleman says, but is vital so that the industry can understand where it is all I am suggesting is that I hope the review will consider going. In doing that, can we please continue to make it the model I describe. That model could also receive clear to the public at large that digital switchover does support from the BBC and ITV, to provide some not mean that FM will disappear? The continuation of programming through partnership arrangements with FM provides a set of opportunities for exciting new the BBC and Canvas and ITV and its regional news things to happen, not least the development of true outlets. That could provide a new route forward. community radio, which is often run by volunteers and Interestingly, the Select Committee hinted at it as a local groups. It would provide yet another form of local possibility in its report, and it ties in with the precise media which I believe would be very popular indeed. So wording of the coalition agreement, which mentions please let us get on with digital radio switchover. We partnerships between all those bodies. have passed the legislation to enable it, so let us now get Of course, as the Secretary of State said, there would on and implement it as quickly as possible. And, please, also be the possibility of having straightforward, free-to-air can we make it clear that there is no intention to switch local TV stations, but in those circumstances it is almost off FM? certain that they would have to use the interleaved Finally, following on from where the hon. Member spectrum. As we know, there is pressure on that spectrum for West Bromwich East left off, of course we are all for other uses such as programme making and special deeply concerned about the relatively small number of events—PMSE—and so on, so there are problems to be local councils that produce free sheets far too regularly, overcome, but it would be interesting to look at both taking away advertising from their local newspapers, models. and action needs to be taken. I am sure that he, like me, My final point on this subject to the Minister, and has looked carefully at the statistics provided by the through him to the Secretary of State, is that reference Local Government Association, which did some helpful is often made to the situation in America. We are aware, work recently in looking at the number of councils that of course, that many of the American stations that he do that. It is staggering how few local councils, relatively referred to are actually cable television stations—that is, speaking, are doing what he suggested—going way over the equivalent of broadband today. The one advantage the mark—but the fact is that several are, and it is of developing that model as part of the package is that critically important that action is taken by laying down it would be a key driver for broadband take-up. Broadband clear guidelines on what will be allowed. In those areas roll-out is crucial, but it is equally important that there where the council is going over the top—going is high take-up of broadband as it is rolled out. If that overboard—we must provide protection to the local occurs, there will be a greater incentive for commercial media. operators to do a greater proportion of the work than I hope that the Minister will think that my remarks they might otherwise do, thereby reducing the requirement have been helpful in suggesting a way forward. I look on the state to fill in the gaps for rural and hard-to-reach forward to other colleagues joining the debate and to areas. The model that I am describing would have the hearing what the Minister has to say. advantage of driving up broadband take-up. 3.34 pm John McDonnell (Hayes and Harlington) (Lab): I Mike Weatherley (Hove) (Con): Thank you, Mr Benton, apologise for coming late to the debate, Mr Benton, for giving me an opportunity to speak today. This is not because of an earlier ministerial meeting. Otherwise, I my maiden speech; it is actually my second speech, so I would have intervened earlier. shall not be constrained by the 10 minutes one gets for a 161WH Local Media24 JUNE 2010 Local Media 162WH maiden speech. I have one hour and 20 minutes to listenership and enough people in the locality viewing complete my speech, so thank you for that. the programmes rather than taking information from I thank you, Minister, for helping me to win the seat elsewhere. of Hove, which I hope will soon be called “Hove and Mr Watson: It is a great honour to make the first Portslade”, as I am campaigning for use of the full intervention on a new Member. I did not realise that we constituency name. We had an enjoyable ice-cream on had the Jack Black of the Conservative Back Benches the beach, I recall, and you had a lot of green paint on with us, but I am delighted that the hon. Gentleman is your jacket that day after sitting on a painting. We sat taking part in the debate. When he is looking at his local on theatre seats on the beach, which was appropriate, media and how internet radio and internet TV can be given the Department for Culture, Media and Sport developed, does he accept that the capacity in which role that you hold. super-fast broadband is delivered will be vital to that? If You spoke to local businesses at the Brighton and we are to scale up the extent of people downloading Hove business show, which included many media content through the net, we will perhaps need a definition companies. As you said, advertising revenues are in of or at least a floor level for what super-fast broadband decline, but there are many opportunities out there for means in practical terms. specific, targeted advertising, which is more effective. Advertising revenues may be down, but opportunities Mike Weatherley: I thank the hon. Gentleman for his are up through the many outlets that you are creating in intervention. I, too, am looking forward to the definition local media. of super-fast broadband and how that is implicated in Of course, local democracy is important, so I shall the debate. Certainly in my professional career, I have take up your advice to include some of the names of my been very involved with intellectual property rights and local media outlets. Our wonderful daily newspaper, the problems that that issue creates. I believe in creative The Argus, is not always helpful but is always informative, ownership and, as the hon. Gentleman rightly points like your own local paper, I believe. It is a wonderful out, digital downloads will potentially cause a problem example of a regional newspaper. going into the future. I look forward to supporting the Government in providing a full definition, including the We also have a free weekly magazine called Latest aspect of super-fast broadband. Homes. It is an example of a magazine whose readership is in ascendancy rather than decline. As you said earlier, 3.40 pm many comments have been made about changing the media. I believe you mentioned that the London Evening Mr Ben Bradshaw (Exeter) (Lab): I welcome the Standard is now in profit. I am sure that that will be one debate. At the beginning of it, the Minister made much of the ways forward for many papers. of how the new Government want to take Parliament more seriously, but six weeks after taking office, the Mr Joe Benton (in the Chair): Order. May I in the Secretary of State has made a speech at the Roundhouse nicest way possible put it to the hon. Gentleman that he about the arts and one in Weymouth about tourism and should not use personal pronouns when addressing he has announced at least some media policy at the other Members? I point out that it should be “honourable Hospital club—but he has yet to come to the House of Member”. Commons to make a statement. I therefore welcome the opportunity to have a proper debate about media policy this afternoon. Mike Weatherley: Thank you, Mr Benton, for pointing that out. I appreciate it. As hon. Members on both sides rightly said, strong, independent local and regional media are essential to We also have several good, strong local radio stations. the health of our democracy as well as to a sense of One is Juice FM, and there is a community radio identity and place in communities and regions throughout station called Radio Reverb, on which I was fortunate the United Kingdom. However, these have, as hon. to host a programme called “House of Rock”. I mention Members noted, come under severe pressure in recent Radio Reverb because it is a good, local community years for the reasons already highlighted: the move radio station which does not have any advertising revenues. from traditional to digital media, the reduction in advertising That has its own problems, but the station is an example revenue and, for some local newspapers, unacceptable of how the community can get involved. The ongoing competition from local authority freesheets. point is that it goes out on the internet as well, and a The threat to quality television news on ITV in the programme that I presented with the Iron Maiden English regions and in Scotland, Wales and, to a lesser manager had a spike of listenership because it was extent, Northern Ireland, has been particularly serious. taken up around the globe. ITV has already made drastic cuts to its regional news That brings me to local television. Like other hon. provision, affecting quality and local content and hampering Members who mentioned this, I am a little concerned those programmes’ ability to compete effectively with about propaganda masquerading as entertainment the BBC. However, in all surveys of opinion in this programming. We need to be careful of that. country, the public have said that high-quality local and I know that various consortiums in my constituency regional news is the public service content that they are looking closely at local TV, and one of my hopes, as value more than any other. Viewing figures substantiate someone who wants to expand the creativity of the city, that, with evening regional news programmes often especially Hove and Portslade, is that we take up all the being the most watched news programmes on the schedule opportunities for media. And, while considering local in those regions. TV, we must consider whether super-fast broadband, That was the context of Labour’s policy for independently whatever that may be, has implications—whether there funded news consortia—a policy supported by both is actually a local aspect, and whether we have enough Commons and Lords Select Committees, both with 163WH Local Media24 JUNE 2010 Local Media 164WH

[Mr Ben Bradshaw] on ITV in the regions and nations of the UK, and that will be the first bitter legacy of the present Government’s Conservative Chairs. It was also supported by the hon. media policy. Member for Bath (Mr Foster), who used to speak on The move has also been greeted with dismay by local Department for Culture, Media and Sport matters for media leaders—people involved in newspapers, magazines, the Liberal Democrats, but who has been unceremoniously radio and television. Sly Bailey of Trinity Mirror said: excluded, so far, from the governing coalition. “We believed that the IFNCs’ capacity to tap the talent and In fact, my first question for the Minister is, who does expertise of regional media companies to provide a viable alternative speak for his Liberal Democrat partners on DCMS to the BBC’s local news made sense for everyone…we don’t see matters in the present Government? Whoever it is, he or ‘City TV’ as a viable proposition. Our research suggests that the costs are too high and the revenues too low to support a sustainable she cannot be too effective, because I have so far failed business model.” to identify a single Liberal Democrat DCMS policy Tony Watson, managing director of the Press that has survived the coalition negotiations. If that Association, said that person is the hon. Member for Bath, or if it may well be in the future, I wish him better luck going forward. “we are sorry to see the scheme for independently funded news consortia scrapped”. David Faulkner, managing director of NWN Media, Mr Foster: As the right hon. Gentleman has asked a said: straight question, may I read to him from the coalition “The concept of the Independently Funded News Consortia agreement? It states: offered a real way forward in boosting news provision on Channel 3”— “We will maintain the independence of the BBC”— ITV— a Liberal Democrat policy— “and multi-platform coverage across the whole of Wales…We are disappointed with today’s statement that the news pilots will not “and give the National Audit Office full access to the BBC’s proceed.” accounts to ensure transparency.” That was also a Liberal Democrat proposal. The agreement Mr Foster: I am sure that as we have a few minutes refers to the policy that we have already mentioned ahead of us, the former Secretary of State will not mind about partnerships between newspapers and radio. It my intervening again. I have already made it clear that I refers to think we would have carried on the trials were we not in coalition. The problem that we faced, and that he now “free entry to national museums”, has to answer, is this. Had the trials been successful, work to deliver the Olympic games, where would the money have come from? Is he saying “moving to a ‘gross profits tax’ system for the National Lottery”, that the Labour party is committed now, in opposition, the use of dormant betting accounts and to providing funding for the full roll-out across the country of the costs of IFNCs? If so, where is the “reform of football governance rules”. money coming from? It also states: Mr Bradshaw: We were absolutely clear about that, in “We will cut red tape to encourage the performance of more our manifesto, in the “Digital Britain” White Paper and live music.” in all the discussions that we had on it, that our preferred I think that the right hon. Gentleman will recognise model was to use a small fraction of the licence fee, each and every one of those as a Liberal Democrat equivalent to the fraction currently being used to fund policy, and if he looks in other parts of the coalition digital switchover. However, we were also open to any programme, he will also notice reference to, for example, other arguments in favour of sustainable, long-term minimum pricing for alcohol and other measures. I and transparent funding models. think that he can be confident that we have played our I shall come to the issue of funding now, because the part. Government appear also to have reversed their previous position and to have accepted what we have always said, Mr Bradshaw: Yes, but the hon. Gentleman has read which is that fast next-generation broadband cannot be out a rather long list of policies that were also Conservative supplied to the whole United Kingdom by the market. party policies; none was a distinctive Liberal Democrat They have acknowledged, or at least said, that they will policy. However, despite what I have said about the hon. use the underspend from the digital switchover fund to Gentleman’s previous support for IFNCs, one of the help to pay for that, instead of for the IFNC pilots. Government’s first acts was to scrap them, without What I am not clear about—I do not think the having any clear idea of what to put in their place. Minister himself is—is how he defines super-fast When I asked the Secretary of State, during DCMS oral broadband. I was sent a definition on my BlackBerry a questions this week, whether he could point to any couple of moments ago, but I have lost it. It did not other European country in which his new preferred come up with a figure, although I understand that the model of local TV works, he could not. current Chancellor of the Exchequer used the figure of It would be very helpful to hon. Members here if the 200 megabits at some stage during the election campaign. Minister did better in his summing-up, or if he identified The Minister’s language involved something about a a single respected media industry commentator who speed that would deliver the best broadband in Europe. believes that the figures on local TV stack up. No, this Either way, the Government have at long last recognised has been done for ideological reasons and has been that the market will not deliver that, but I am still not cheered on, no doubt, by the Government’s friends in clear about something. Our target was to reach 2 megabits the Murdoch empire, who object to any intervention in by 2012 by using the underspend from the digital switchover, the market or any obstacle to their aim to dominate it. I but after 2014, we were going to fund it—again, this am afraid that it will mean the end of high-quality news was supported by the Liberal Democrats at the time— 165WH Local Media24 JUNE 2010 Local Media 166WH through a very modest levy on fixed telephone lines. we have already had consultation. We had a long and That would have provided the super-fast broadband by full consultation last year; we do not need more. The 2018. I am not sure what the Minister’s funding mechanism rules mean that he cannot look at documents or will be post-2014. Although the hon. Member for Bath correspondence from the time before his arrival at the said that it would not mean the continuation of top-slicing Department, but I understand that they allow me to get of the BBC licence fee, I should be grateful if the hold of that information; I would be happy to give him Minister were to confirm that that is so. If that is not to a copy of a letter that I wrote to my colleagues at the be the funding stream, what will be? Department for Communities and Local Government, If, after 2014, the Government intend to continue giving a simple solution. I urge the Minister to implement using a portion of the licence fee to fund super-fast it forthwith, without having to go through another broadband, I suggest that, having criticised the Labour lengthy consultation. I know that local newspapers and Government for planning to use part of the licence fee the local newspaper industry are desperate for something to fund regional news with important public-service to be done. They do not want more consultation; they broadcasting content, using part of the licence fee to want action. fund infrastructure would show breathtaking double I should be grateful if the Minister told us what the standards. I would appreciate some clarity on the point. Government intend to do about news aggregating services. Will the Minister also give us a guarantee—we have They have the enormous potential to suck up news for not had one so far—that there will be no further little cost. Indeed, Google is already doing so, but deterioration in ITV regional news until whatever model Google will never pay local journalists to cover court he and his Liberal Democrat friends come up with to cases or to scrutinise the workings of a local authority. put in its place? Will he also assure us of something that The hon. Member for Bath touched on the importance the Prime Minister could not assure us of yesterday at of local radio and the digital switchover. When we were Prime Minister’s Question Time—that there will be no in government, we recognised the pressures facing the relaxation in the rules governing impartiality for commercial radio industry.The Digital Economy Act 2010 broadcasters? relaxed the rules governing the local radio market. We We have talked about further deregulation in the also provided the industry with much needed certainty local ownership market. The Minister has already on digital switchover, setting a date and the conditions acknowledged that Ofcom has recommended a relaxation that needed to be met. As the hon. Gentleman said, the of local media rules, with the exception of the same freeing up of the FM spectrum for local and community organisation owning all three media—newspapers, radio radio could be valuable for local and community radio. and television—in one area. Does the Secretary of However, the industry needs certainty. State’s statement at the Hospital club that he wants to The Minister said on Monday that the Government go even further than previously proposed mean that the were proceeding with digital switchover, but were Government would be happy to see a monopoly of “taking all factors into account”——[Official Report,21June media ownership across those three platforms in one 2010; Vol. 512, c. 12.] area or region? I would be grateful for an assurance—and Will he explain exactly what that means? Are the so, I suspect, would the hon. Member for Bath. Government still committed to switchover in 2015? Will I turn to local newspapers. The downturn in advertising, they be setting out the criteria that have to be met structural changes in the advertising market and the before a final decision is taken? Will the Government significant generational shift in reading habits has, as also be deciding on a help scheme similar to that for we all acknowledge, hit local newspapers hard. A number digital switchover on television, to support people through of newspaper and other media organisations were part that time? of the successful consortia that bid for our IFNC pilots, Last but not least, will the Minister say when the and as I said earlier, they are dismayed by the Government’s DCMS website will be updated? I wanted to check what decision to scrap them. However, the local newspaper the Government’s policy was on media and broadcasting, industry is looking to the Government to act on the but it was blank. proliferation of local authority freesheets. None of us thinks that there is anything wrong with 3.56 pm local councils keeping in touch with their residents on an occasional basis, to ensure that the public are aware Mr Vaizey: This has been an enjoyable and illuminating of local services and how to access them, and how to debate. Before turning to the myriad questions put by contact their councillors. However, as we have heard, in the excellent Opposition spokesman, the right hon. a small number of cases things have been getting out of Member for Exeter (Mr Bradshaw), I wish to dwell hand. The hon. Member for Bath referred to the Local briefly on some of the speeches that preceded his. Government Association survey, which showed that First, I thank the hon. Member for West Bromwich about 15% of local authorities produce a newspaper or East (Mr Watson) for his kind comments about me. It is magazine at least once a month, and that 13% of sometimes disconcerting to members of the public when newspapers give over more than a third of their pages to Members of Parliament from opposite sides of the adverts, with one local authority reporting that half its House pour praise on each other. It might come across freesheet comprises adverts. That deprives the local as some sort of establishment conspiracy. However, the paid-for newspaper market of extremely valuable advertising public occasionally say that they dislike yah-boo politics revenue. and would like politicians to work more closely together. Before the election, the Labour Government were That is obviously why we decided on a coalition. about to issue new guidance that would have put a stop I do not stint in my admiration for the hon. Gentleman. to that. When can we expect action from the Government I have known him for many years. He has turned on that front? The Minister spoke of consultation, but himself into a digital champion, and a champion of the 167WH Local Media24 JUNE 2010 Local Media 168WH

[Mr Vaizey] Democrats and the Conservatives on a range of issues across culture and the creative industries, so in effect, creative industries. He thinks deeply about the subject coalition policies already existed, and they made it into and about the impact that the internet is having on all the coalition agreement. Indeed, that includes policies aspects of our lives. It is always dangerous for a junior that have crashed resoundingly in the past week. I refer Member to patronise a more senior MP, but I think that to the video games tax credit, of which I was an over the past few years the hon. Gentleman has earned enthusiastic supporter, as was the hon. Member for the right for his comments to be heard by all sides. He Bath. When faced with the brick wall of the Treasury, always makes a powerful case. His speeches are not even policies that have the strong support of leading party-free, but they are generally independent and members of both parties can break like an egg and slide thoughtful. I look forward to engaging in debate with slowly into oblivion. him on this subject for months, if not years, to come. I say, as a matter of praise, that I am always slightly Mr Bradshaw: In that case, will the Minister give us nervous when he intervenes on me; I know that whatever an example of a single policy from the Department for questions he puts to me will probably be difficult, as Culture, Media and Sport that was ditched after pressure was demonstrated today. from the Liberal Democrats? The hon. Gentleman was absolutely right to speak, perhaps in a Rumsfeldian way, about unknown unknowns Mr Vaizey: I did not come to this debate as well in connection with the internet. It is important for hon. prepared as the hon. Member for Bath, who clearly Members to understand that the internet is changing anticipated the Opposition’s question regarding which things so quickly, and technology is moving so rapidly, policies made it in and which were out. The only issue that any attempt at prescriptive regulation would that we disagreed over was IFNCs, and we had a be dangerous. The general consensus about the specific alternative policy to put in place. On most other Communications Act 2003 is that it may already be things—I am sure that at any point now the hon. significantly out of date. We certainly had interesting Member for Bath will intervene and help me out—we debates about the Digital Economy Act 2010, and were in agreement. there are views across the spectrum on how effective it I congratulate my hon. Friend the Member for Hove might be. (Mike Weatherley) on his maiden Westminster Hall The hon. Gentleman raised a specific point about speech. He and I share a similar ambition; I have technology advice from the Government. I can tell renamed my constituency “Wantage and Didcot”, although him—the answer was obviously in my head as he was technically it remains Wantage in the Official Report. asking the question—that there exists a creative industries Even the BBC, when I occasionally appear on it, refers knowledge transfer network. Apparently, that is part of to me as “the Member for Didcot”. My advice to my the Technology Strategy Board. It has made an open hon. Friend is to call himself “the Member for Hove call for proposals as part of its digital test bed. I do not and Portslade”, and in every arena other than this, he need to explain this, but for the record the board is an will be known as that. As I discovered at the last arm’s length group under the Department for Business, election, he will rack up the votes in Portslade as a Innovation and Skills—or, as I learned this morning, result. He has had a very successful career in the media part of the BIS family. I am sure that the board will and will bring important expertise to bear on the subject. continue to thrive in the age of austerity. No doubt he will continue to press me for a definition The hon. Member for Bath (Mr Foster)—perhaps I of super-fast broadband to demonstrate his strong should call him my hon. Friend—and I have participated independence while he remains temporarily on the in a number of debates over the past few years, and as Back Benches. the select group of people who have followed them, and I welcome the shadow spokesman, the right hon. even obsessed about them, will know I have frequently Member for Exeter, to his place. I occasionally faced referred to him as my mentor, and that is no less true him across the Dispatch Box, and he brought a great today than it has been in the past. He is a man from deal of passion and expertise to his role as Secretary of whom I have learned a great deal, and he is a very State for Culture, Media and Sport. Again, without important part of the DCMS family under the current wishing to confirm the prejudices of the public, I have coalition Government. We continue to listen closely to long been an admirer of him and his work. I now have him and to engage in regular discussions with him. As to address some of the specific questions that he was he demonstrated in his speech, his knowledge of this able to put to me as a result of the expertise that he sector and areas around it is second to none. I obviously gained as Secretary of State. He challenged me to cite concur with his view that top-slicing would be a dangerous examples of successful local television in Europe. Obviously, road to go down. I heard what he said about contract there are strong examples in America, but there are also rights renewal, and I can assure him that that is something very important successful commercial examples in Spain, that the Government are looking at, because it has and possibly even Sweden. He also challenged me to become clear that a simple regulatory reform may not name any serious commentators who supported our be enough. He was very honest in his appraisal of proposals. Roy Greenslade, the éminence grise, who is IFNCs and how they came to an end. I heard his probably at the pinnacle of media commentators, was remarks on radio switchover as well, and I will return to full of praise for the Secretary of State’s proposals on them when I address the questions put to me by the local television. No one is pretending that a solution is Opposition spokesman. ready to be taken off the shelf; we are working hard on I thought that it was a little unfair of the Opposition the matter. What Roy Greenslade praised, and what the spokesman to claim that there were no distinctive Liberal right hon. Member for Exeter might bring himself to Democrat policies in the coalition agreement. There praise in a quiet and private moment, is the ambitious was already strong agreement between the Liberal nature of our plans for local television. 169WH Local Media24 JUNE 2010 Local Media 170WH

Mr Watson: I am grateful to the Minister for his Europe. The technology used to deliver this could be fixed or comments, and if I was deploying Rumsfeldian rhetoric wireless but will represent a significant upgrade on today’s fixed in this debate, I apologise. I hope that he appreciates and wireless networks. —[Official Report, 17 June 2010; Vol. 511, that on this occasion, I have not followed through with c. 533W.] the tanks. I am looking for general reassurance on a I hope that that is helpful to hon. Members. It will make point. Essentially, I think that his dilemma is that very it unnecessary for the hon. Gentleman to write to early on in his time in the Department, he will be asked everyone after the debate. The Chancellor used the to back a winner. The point that I was trying to make, figure of 100 megabits per second in his interview with obviously rather inelegantly, is that he should try not to Andrew Marr during the election campaign. lose some of the initiatives that are encouraging innovation and creativity. In particular, I am thinking of 4iP and the work that it has done in the hyper-local news sector, Mr Vaizey: The Opposition spokesman has read out which might be revolutionary, and might be the solution my definition, and I wonder what all the fuss is about. that develops. Have a look at www.thestirrer.co.uk, What could be clearer? In this World cup climate, an which was set up by Adrian Goldberg. Goldberg has alternative definition could be, “just so long as we are created a community that generates its own news content, faster than the Germans”. and people participate in a community board on the The right hon. Gentleman also asked whether the back of that. I ask the Minister to resist the temptation coalition Government were planning to remove the to narrow down the options, and ask him to try to use rules for broadcasting impartiality.“Smear”would perhaps very small amounts of investment to ensure that 1,000 be too strong a word, but that is a long-running blossoms can bloom. misrepresentation of a discussion document issued by Mr Vaizey: I take the hon. Gentleman’s point, and let the Conservative party in opposition. There is a real me say that we can agree on a number of levels. As he issue. said, we are talking about a very fast-changing landscape, No one is planning to remove the rules of impartiality so it is not the job of the Government to pick winners. for our current public service broadcasters, but what That brings the focus on to why the Conservative party, about The Guardian or the Daily Mirror? When The when in opposition, opposed IFNCs. We felt very strongly Guardian does podcasts or makes broadcasts that it that it was about picking winners. It was effectively puts out on its website, should it be subject to impartiality keeping in place the old model of regional television rules? Common sense dictates that that would not be with public money. In contrast, with local television, we the case, but there is an open question about what are looking at a deregulatory initiative; it could also happens with IPTV when the internet becomes effectively perhaps be called a regulatory initiative, at least in so far available on our television. Suppose that a channel run as it would mean setting in place a regime that allows by The Guardian is on the internet, but viewed through commercial organisations to fill that space, if they think our television—should that be impartial or not? It is an that it is viable. That is why we have asked Nicholas interesting matter to explore. Shott to examine the commercial viability of the initiative, but the hon. Gentleman is right to say that we must not The Labour party was keen to speculate that we were lose sight of the fact that there are hundreds of different anxious to import Fox News to this country, but that is initiatives that are involved in the delivery of local news. certainly not our intention. As for whether we would be content with a monopoly of ownership at the local The last time I mentioned the subject in Parliament, I level, we have asked Ofcom to consult on the issue. We was e-mailed by the local news bloggers in Lichfield, want to explore whether it is possible to go further, but who met in the pub and now provide an ultra-local we acknowledge that sweeping away such regulations news service. Of course, there will be elements of public cannot simply be a straightforward political decision. money available for that kind of research and The matter has to be analysed and consulted on, and we experimentation. In effect, one could argue that although would listen to and abide by whatever Ofcom came up 4iP does not strictly have public money, a public service with. broadcaster is providing the service. The Technology Strategy Board is available, and the National Endowment News aggregators are an ongoing matter of concern for Science, Technology and the Arts could potentially for the local and national media. In recent weeks, News lead research in this area, as could our universities and International has decided to put pay walls around its higher education institutions. It is not beyond the bounds website. Interestingly, Rupert Murdoch is always cited of possibility that media companies might also find by the Labour party as effectively dictating the Conservative room to experiment. party’s media policy; despite the fact that his newspapers The right hon. Member for Exeter pressed me on supported the Labour party between 1994 and broadband roll-out, and how the Government were going approximately 2009, he apparently has always been in to pay for it post-2014. We intend to have an industry control of the Conservative party and has absolutely no day at the Department for Business, Innovation and influence on the Labour party. Skills on 15 July, when the Secretary of State will make his proposals clearer. The right hon. Member for Exeter could invite the Secretary of State to make those proposals Mr Watson: I am grateful to the Minister for giving to Parliament. He also raised the issue of impartiality. way. He knows that we have plenty of time to develop such arguments. Does he acknowledge that news Mr Bradshaw: Before the Minister moves off broadband, aggregators are successful because they allow citizens I thought that it might be helpful if I provided him with and consumers to find content in a useful format? his own definition of “super-fast”, which was However, media companies do have the right to opt out “broadband of sufficient speed and quality to deliver the services of news aggregators and that really should be where the that will lead to Britain having the best broadband network in arm of the Government is in such discussions. 171WH Local Media24 JUNE 2010 Local Media 172WH

Mr Vaizey: Absolutely. The matter is, in effect, an account. We hope to announce the road map to digital argument between two competing businesses and business switchover shortly, and by “shortly” I mean in less than models. Again, it is a fast-moving debate and we will see three weeks. what emerges. I am not convinced at the moment that This has been an enjoyable debate. I began by teasing there is a case for direct Government intervention, even my local paper, the Wantage and Grove Herald. I hope if such intervention were realistic or possible. that nobody would take my remarks as criticism in any Finally, the Opposition spokesman, the right hon. sense, because it is one of the best local newspapers in Member for Exeter, pressed me on the digital radio the country, and it provides an important local community switchover. We remain completely committed to switchover. service, along with its sister papers the Oxford Mail and We intend fully to press ahead with it, but it is important The Oxford Times. I also, perhaps, teased Arqiva for to take all factors into account. As my hon. Friend the burning down my television aerial in Oxfordshire. I Member for Bath pointed out, it is important to scotch would like to put on the record, as a new Parliamentary a few of the myths that surround digital radio switchover; Under-Secretary of State, that as far as I am concerned— the idea that FM will suddenly disappear is not true. and this is a tribute both to the current Opposition There are myths about the energy use of digital radios spokesman and his predecessors—the digital television and, again, digital radio technology is changing rapidly switchover has gone incredibly smoothly. It is one life’s to enable cheaper and even more consumer-friendly great ironies that the first glitch just happened to happen radios to be put into the marketplace. The previous in an area that affected my constituents. Government set interesting and important targets for Question put and agreed to. the percentage of the population that should be listening to digital radio before switchover, as well as the level of 4.16 pm coverage. Those are all factors that we will take into Sitting adjourned. 19WS Written Ministerial Statements24 JUNE 2010 Written Ministerial Statements 20WS

Priority 3b—By 31 March 2011 to have improved Written Ministerial MGS customer satisfaction using the 2009 survey results as a baseline. Statements Priority 4—By 31 March 2011 to have achieved a detection rate of at least 55% of recorded crime that significantly impact on defence capability. Thursday 24 June 2010 Priority 5—By 31 March 2011 to have achieved all agreed international tasks. BUSINESS, INNOVATION AND SKILLS Priority 6a—By 31 March 2011 to have met and maintained external MDP accreditation and compliance Postal Services for: a. NPIA Firearms Training Licence. The Parliamentary Under-Secretary of State for Business, b. Professionalising Investigation Programme Compliance. Innovation and Skills (Mr Edward Davey): The Government c. ACPO accreditation for Police Dog Training Instructors. believe that unless we take the right steps Royal Mail d. Management of Police Information. risks being laid low by falling mail volumes, low investment e. Home Office Counting Rules for Recording Crime/Scottish and its huge pension deficit. Crime Recording Standards. To address these challenges, we propose to introduce f. National Standard for Incident Reporting. a Bill in the first Session of this Parliament that will Priority 6b—By 31 March 2011 to have met and help modernise the Royal Mail, in partnership with maintained external MGS accreditations for: employees, and ensure that the company benefits from a. The National Security Industry Gold Standard private sector capital and disciplines. b. Security Industry Authority Standard. We believe that the recommendations and analysis in Richard Hooper’s report on the maintenance of the Priority 7—By 31 March 2011 to have maintained or universal postal service in the UK published in December raised the Diversity Excellence Model score for the 2008 are still broadly valid today, but as our policy agency using the results of the 2009-10 assessment as develops we want to be able to test it against current the baseline. market conditions. I have, therefore, asked Richard Priority 8—By 31 March 2011 to have delivered Hooper to update his report. specified outputs within resource control totals. The terms of reference for Richard Hooper’s update are: To consider developments in the postal sector and Royal HOME DEPARTMENT Mail since the publication of the review’s final report. To test whether the underlying issues which threatened the maintenance of the universal postal service remain. Identity and Passport Service To consider whether the recommendations in the report still provide the best solutions to maintaining the universal service. I have asked him to let the Government have his The Minister for Immigration (Damian Green): The initial views in the summer and he will publish a fuller “Identity and Passport Service Annual Report and update by early autumn. Accounts 2009-10” has been laid before the House and published today. Copies are available in the Vote Office. DEFENCE

Police and Guarding Agency Pre-charge Detention The Parliamentary Under-Secretary of State for Defence (Mr Andrew Robathan): Priorities for 2010-11 have been set for the chief constable/chief executive of the Ministry The Secretary of State for the Home Department of Defence Police and Guarding Agency (MDPGA). (Mrs Theresa May): I am announcing today our intention These priorities are linked to the delivery of the agency’s to renew the current maximum period for pre-charge key outputs of providing an effective policing and guarding detention of terrorist suspects for a period of six months, service. In brief the eight priorities are: and I have laid a draft order to that effect. Priority 1—By 31 March 2011 to have ensured that Section 23 of the Terrorism Act 2006 extended the the customer requirement for Ministry of Defence Police maximum period of detention of terrorist suspects before (MDP) and Ministry of Defence Guard Service (MGS) charge from 14 days to 28 days. Section 25 of that Act services are matched with available resources, through says that the 28-day period of detention must be renewed proactive engagement with TLBs. by order if it is to remain in place. Priority 2a—By 31 March 2011 to have delivered at It is vital that we support the police and other agencies least 95% of MDP agreed UK customer tasks. in their work to keep us safe from terrorism. We face a Priority 2b—By 31 March 2011 to have delivered at serious threat, and the nature of modern international least 95% of MGS agreed UK customer tasks. terrorism means that police investigations can be longer Priority 3a—By 31 March 2011 to have improved and more complex than they have been in the past. At MDP customer satisfaction using the 2009 survey results the same time, as a Government we are also committed as a baseline. to safeguarding the rights and liberties of the public. 21WS Written Ministerial Statements24 JUNE 2010 Written Ministerial Statements 22WS

To ensure this balance is appropriately set, the To support this review I have published today a call Government have made clear their commitment to review for evidence to inform an internal review. This provides counter-terrorism legislation, and pre-charge detention an opportunity for people and organisations to submit will form part of that review. That review is due to evidence to help us reach our decision. This call for report to Parliament in the autumn, but in the meantime evidence will close on 6 August and we will publish our the current, and exceptional, 28-day maximum period response in the autumn. This is to ensure that we are in of pre-charge detention for terrorist suspects will expire a position to give as much notice as possible to those on 24 July. who might be affected by an earlier rise in the state However, while we would not wish to pre-judge the pension age than expected. outcome of the review, both parties in the coalition are To help ensure sustainability of the system over the clear that the 28-day maximum period should be a long term the Government will also consider future temporary measure and one that we will be looking to increases to the state pension age and how best to reduce over time. manage the ongoing challenges of longevity. As part of our strategy to encourage greater private pension saving we are also reviewing how best we can WORK AND PENSIONS support the implementation of automatic enrolment into workplace pensions. The coalition agreement confirms our intention to Reinvigorating Retirement introduce automatic enrolment, which evidence shows is an effective means of increasing pension saving. However, circumstances have changed since the Pensions Commission The Minister of State, Department for Work and published its recommendations in 2005. It is right that Pensions (Steve Webb): The Government are announcing we consider whether the approach inherited from the today two key reviews as part of their strategy to previous administration strikes the right balance between reinvigorate retirement. cost and benefits to individuals, employers and for the As set out in the coalition agreement, we have established taxpayer, particularly in the light of current economic a review into the timing of the increase in state pension and fiscal conditions. ageto66. The review will be conducted by an independent Ensuring an equitable state pension is a key priority team, led by Paul Johnson, Frontier Economics, David for this Government. We are protecting the future value Yeandle OBE, Engineering Employers Federation and of the basic state pension through the triple guarantee. Adrian Boulding, Legal and General Group plc. However life expectancy at age 65 is increasing at a The terms of reference for the review and the call for faster rate than was previously projected and we must evidence are available on the Department’s website at: make sure our pensions system is sustainable. The current www.dwp.gov.uk/policy/pensions-reform/latest-news. They fiscal position means it is right to consider the timing of are also available in the Vote Office and the Printed the rise in state pension age to 66. Paper Office. 279W Written Answers24 JUNE 2010 Written Answers 280W

1 Offence under the Offences against the Person Act 1961, sec27. Written Answers to 2 The figures given in the table on court proceedings relate to persons for whom these offences were the principal offences for which they were dealt with. When a defendant has been found guilty of two or Questions more offences it is the offence for which the heaviest penalty is imposed. Where the same disposal is imposed for two or more offences, the offence selected is the offence for which the statutory Thursday 24 June 2010 maximum penalty is the most severe. 3 Every effort is made to ensure that the figures presented are accurate and complete. However, it is important to note that these data have been extracted from large administrative data systems generated by the courts and police forces. As a consequence, care should be taken ATTORNEY-GENERAL to ensure data collection processes and their inevitable limitations are taken into account when those data are used. Departmental Mobile Phones 4 Excludes data for Cardiff magistrates’ court for April, July, and August 2008. 5 The numbers found guilty may exceed those proceeded against as it Mr Watson: To ask the Attorney-General which may be the case that the proceedings in the magistrates court took Ministers in the Law Officers’ Departments have been place in the preceding year to the defendant being found guilty at the issued with (a) a BlackBerry, (b) an iPhone, (c) Crown Court in the following year, or the defendant was found guilty for a different offence to the original offence proceeded against. another make of mobile telephone and (d) a personal Source: digital assistant supplied by the Department. [4114] Justice Statistics Analytical Services in the Ministry of Justice

The Solicitor-General: The Attorney-General and I have each been issued with a BlackBerry. Departmental Mobile Phones

Mr Khalid Mahmood: To ask the Secretary of State for Justice pursuant to the answer to the hon. Member JUSTICE for West Bromwich East of 10 June 2010, Official Report, column 211W, on departmental mobile phones, Children what the (a) purchase cost of the handset, (b) network provider, (c) type of tariff and (d) name of the supplier Mr Graham Stuart: To ask the Secretary of State for is of each BlackBerry device issued to Ministers in his Justice how many mothers were (a) prosecuted and Department. [4003] (b) convicted for the offence of child abandonment in each of the last five years. [3763] Mr Djanogly: The BlackBerrys issued to Ministers in the Ministry of Justice each (a) have a purchase cost of Mr Blunt: The Ministry of Justice does not hold £50, (b) are on a network provided by Vodafone, (c) centrally, details of the relationship between an offender are on the Vodafone BlackBerry Voice and Data tariff, and the victim other than where the offence is specified and (d) are supplied by Vodafone. separately in law. I can therefore provide details on the number of defendants who were proceeded against at magistrates courts and found guilty at all courts for Departmental Responsibilities ‘abandoning a child under two years’, England and Wales 2004 to 2008 (latest available), which are shown in the table as follows. Sir Alan Beith: To ask the Secretary of State for Justice Court proceedings data for 2009 are planned for whether he has received recent representations from publication in October 2010. Crown Dependency (a) governments and (b) legislatures advocating a transfer of departmental responsibility for Number of defendants proceeded against at magistrates courts and such dependencies from his Department to another found guilty at all courts for abandoning a child under two years1, England and Wales 2004 to 20082,3,4,5 Government department. [4007] Sex 2004 2005 2006 2007 2008 Mr Djanogly: To date I have not received any Males representations from the Crown Dependencies’ Proceeded 4 3 1——Governments advocating a change in departmental against responsibility. Found ———— 1 guilty Fines: Surcharges Females Proceeded —132— against Graham Stringer: To ask the Secretary of State for Found —— 2 1—Justice how much has been raised by the £15 victim guilty surcharge in each year since its inception. [4111]

Total Mr Blunt: The victim surcharge was introduced on Proceeded 4442—1 April 2007. Between 2007-08 to 2009-10 the victim against surcharge raised £21,079,310. It produced approximately Found ——211£3.8 million in 2007-08, £8.1 million in 2008-09 and guilty £9.2 million for 2009-10. 281W Written Answers24 JUNE 2010 Written Answers 282W

Prisoners: Gender Recognition Mr Djanogly: As I am sure the hon. Member is aware, RMJ are now in administration. Where any provider Caroline Lucas: To ask the Secretary of State for ceases to have a legal aid contract for whatever reason, Justice when he expects the Prison Service Order on the LSC will make an assessment of any potential gender dysphoria to be publicly available. [3350] financial issues in the individual circumstances. This will include payments on account made, claims to be Mr Blunt: At the end of March 2010 the NOMS billed and whether for example the provider will be Equalities Group submitted a draft of the Prison Service continuing to conclude cases for existing clients. It may Instruction (PSI) on the care and management of transpire that RMJ owe money to the LSC. transsexual prisoners for legal advice. The NOMS Equalities Group is currently working through the advice provided. A final draft will be ready for ministerial approval after HOME DEPARTMENT the summer recess and will be made publicly available as soon as possible thereafter. Border Agency: Manpower Rape: Victim Support Schemes Andrew Percy: To ask the Secretary of State for the Home Department how many (a) senior executive Caroline Lucas: To ask the Secretary of State for officers and staff at Grade 7 and (b) higher executive Justice for what reasons ring-fencing of funding for officers there were in the UK Border Agency (i) in 1997 independent third sector rape crisis organisations has and (ii) on the latest date for which figures are available. been removed following the combination of separate [1473] funding streams from his Department and the Government Equalities Office for 2010-11. [3578] Damian Green [holding answer 17 June 2010]: The number of (a) senior executive offices and staff at Mr Blunt: The Ministry of Justice has, for the last Grade 7 and (b) higher executive officers in the UK four years, allocated £1.25 million per annum to voluntary Border Agency and its predecessor the Border and sector organisations supporting victims of sexual violence. Immigration Agency is set out in the following table. This is funded through the Victim Surcharge, which is a Data are only available from the present United Kingdom £15 levy on all fines imposed by the courts following a Border Agency personnel system (ADELPHI) back to criminal conviction. It is a condition of the Ministry of 2005. 1997 figures for the grades covered have been Justice’s financial settlement that the income from the obtained from the archive of the previous personnel surcharge must be used to provide non-financial support system PIMMS, and are illustrative. to victims of crime and their families. Following machinery of government changes today’s For the current financial year only, the previous UK Border Agency has a wider function than its Secretary of State for Justice agreed with the then predecessors. It now includes UK Visas (from Foreign Minister for Women to combine this funding from the and Commonwealth Office) and HMRC Detection. Ministry of Justice with £1 million from the Government Because of these changes the 2005 and 2010 figures are Equalities Office, creating a single fund for organisations not directly comparable. that support victims of sexual violence. All other arrangements for the funding, including any ring-fencing, United remain unchanged. This one-off combined fund was Border and Kingdom Immigration Immigration Border created to provide a more joined-up approach to the Directorate1 Agency Agency2 sector, to simplify the application process for organisations (31 March (31 March (31 May bidding for money and to deliver better value for money 1997) 2005) 2010) overall. Grade 73 33 229 577 Refugee Migrant Justice Senior executive 114 466 1,492 officer (SEO) Mr Hanson: To ask the Secretary of State for Justice Higher executive 550 1,242 3,241 on what date he was first informed that Refugee officer (HEO) Migrant Justice had been declared insolvent. [4057] Total in grades 697 1,937 5,248 shown 1 Mr Djanogly: Paul Gray chair of the board of trustees In 1997 the immigration function was carried out by a Home Office directorate rather than a Home Office agency, these figures will of RMJ wrote to my right hon. and learned Friend the therefore undercount other Home Office staff in these grades earning Lord Chancellor and Secretary of State for Justice (Mr out functions on behalf of the directorate, which would now be Clarke) on 14 June to inform him that having taken carried out within the agency. These staff can not be distinguished in professional advice he had convened a special meeting archived data except at disproportionate cost. 2 of the board on 15 June. He informed my right hon. Machinery of government changes have included UK Visas (formerly F and CO) and Detection formerly (HMRC) within these figures. The and learned Friend at that meeting they would be 2005 Border and Immigration Agency figures do not include these obliged to sign formal papers to place the charity into functions. The UK visa grade material included in this total was administration. supplied by International Group support and is at 1 April 2010. 3 All figures are rounded active FTE. Grades shown include specialist Refugee Migrant Justice: Legal Aid equivalents. Departmental Buildings Rachel Reeves: To ask the Secretary of State for Justice what steps his Department is taking to ensure Mr Iain Wright: To ask the Secretary of State for the the prompt payment of legal aid to Refugee Migrant Home Department what properties the UK Border Justice by the Legal Services Commission. [4109] Agency leases overseas; whether those buildings are 283W Written Answers24 JUNE 2010 Written Answers 284W shared with other Government Departments and the spending and effectiveness of measures aimed at non-departmental public bodies; and whether she plans tackling problem drug use. The Department’s response to cancel the leases on those properties. [3522] will be published shortly as a Treasury Minute.

Damian Green: The overwhelming majority of property Entry Clearances occupied by the UK Border Agency overseas is linked to the processing of visa applications. None of these Fiona Mactaggart: To ask the Secretary of State for buildings are leased by the UKBA; they are all leased the Home Department when her Department plans to and managed by the FCO, as part of a package of implement the decision in visit entry clearance appeals support services provided to the FCO for which a VA/15347/2009 and VA/15353/2009 (New Delhi central charge is made. It is common practice for office references 2649457 and 8) which were allowed on 6 July accommodation to be shared with the FCO, where this 2009. [4154] represents the best use of the available office space. Over the last three years the UKBA have rationalised Damian Green: I confirm that the applicants have their footprint overseas by concentrating work into a now been invited to submit their passports to the visa reduced number of decision-making posts. They are section in New Delhi, with a view to the visas being currently investigating how further, similar savings can issued as soon as possible. The UK Border Agency be made. regrets the delay in these cases. The remainder of UKBA overseas property is linked to the operation of the juxtaposed control. The UK Identity Cards Border Agency rents residential and business properties on the continent for use by officials who operate from Alan Johnson: To ask the Secretary of State for the ports, terminals and office sites. These properties are Home Department what estimate she has made of the not shared with other bodies and there are no plans to cost to the public purse of sending notification letters cease operation of these immigration controls. to those who have purchased or applied for identity cards. [3816] Domestic Violence, Crime and Victims Act 2004 Mrs May [holding answer 22 June 2010]: The estimate Mr Buckland: To ask the Secretary of State for the for the cost of sending notification letters to all existing Home Department whether she plans to bring identity card holders is £20,000. Section 9 of the Domestic Violence, Crime and Victims These costs include printing, postage and enclosure Act 2004 into effect. [3782] costs and the cost of secure extraction of names and addresses from the National Identity Register. James Brokenshire: Domestic violence is unacceptable. I will be discussing the specific issue of the implementation Mr Bain: To ask the Secretary of State for the Home of Section 9 with colleagues across Government as we Department what estimate she has made of the number develop our broader approach to tackling violence against of her Department’s staff to be redeployed as a consequence women and will report in due course. of the end of the identity card programme. [4178] Drugs: Misuse Damian Green: I refer the hon. Member to the answer given on 17 June 2010, Official Report, column 552W. Lindsay Roy: To ask the Secretary of State for the Home Department what recent assessment she has made Immobilisation of Vehicles of the effectiveness of the National Drug Strategy in reducing the number of people dependent on illegal Diana R. Johnson: To ask the Secretary of State for drugs. [3717] the Home Department when she plans to bring into James Brokenshire [holding answer 22 June 2010]: force the provisions in the Crime and Security Act 2010 The ultimate goal of all drug treatment should be to relating to regulation of the conduct of the private help drug misusers become free of their addiction. vehicle wheel-clamping industry; and if she will make a statement. [3991] A number of improvements have been made to the drug treatment system over the last decade such as Lynne Featherstone: I refer the hon. Member to the access to treatment and a reduction in the numbers of answer given on 15 June 2010, Official Report, column individuals dropping out, building on the expert view 385W. that drug misusers should spend at least 12 weeks in treatment to derive some benefit. Offences against Children: Internet The latest data shows that, in 2008-09, 210,815 adults were in contact with treatment services. Of those, 194,572 Karen Lumley: To ask the Secretary of State for the (92%) were effectively engaged for 12 weeks or more, or Home Department how many of the subjects investigated if leaving before 12 weeks did so free of dependency. In under Operation Ore have been (a) charged and (b) 2008-09, 24,970 completed treatment free of dependency. convicted of offences related to the investigation; what The Home Office Drug Treatment Outcomes Research the status of the investigation is; and if she will make a Study has shown that for every £1 spent on drug treatment, statement. [3798] an estimated £2.50 worth of benefits were obtained. The Public Accounts Committee’s Thirtieth Report— James Brokenshire: The investigations generated by Tackling Problem Drug Use—published on 24 March Operation Ore were initiated as a consequence of nationally contained a key conclusion that the Home Office evaluates co-ordinated disseminations to local UK police forces. 285W Written Answers24 JUNE 2010 Written Answers 286W

The decision to proceed to investigation on these cases Damian Green: Checks for firearms and drugs on was a matter for the relevant chief constable. Information passenger and freight traffic routed through all ports on Operation Ore is not collated centrally on a routine with ferry connections to the UK are conducted by the basis. UK Border Agency on the basis of risk profiles and However, from information supplied by UK police intelligence. forces to the Child Exploitation and Online Protection All passengers and crew entering the UK are examined (CEOP) Centre and its precursor agency, the National for immigration purposes at all ferry ports. The UK Crime Squad (NCS), more than 1,750 individuals were Border Agency uses intelligence, trend and risk profile convicted, and another 700 people received a formal to identify illegal entrants and those who have been caution. trafficked. All Border Force officers undergo trafficking awareness Police: Stun Guns training to help them identify those who might have been trafficked persons. If there are reasons to believe Anas Sarwar: To ask the Secretary of State for the that a person has been trafficked the case is referred to Home Department what the process of authorisation is the police. for (a) acquisition, (b) possession and (c) use of The UK Border Agency at the channel ports utilises tasers by police. [3743] a range of technologies to search for people; heartbeat detectors, passive millmetric wave imaging, CO2 probes Nick Herbert: In England and Wales, the acquisition, and body detection dogs. deployment and use of Tasers is an operational matter The UK Border Agency, SOCA and police agencies for chief officers of police. Conducted Energy Devices on both sides of the channel have created a UK-France are classified as ’prohibited weapons’ by virtue of section Joint Intelligence Unit which operates to crack down on 5 Firearms Act 1968. Police officers in England and the criminals behind illegal migration through Calais. Wales while acting in their capacity as such, are exempt from the requirements of the legislation and do not need any additional legal authority to possess the Taser. Taser is available to Authorised Firearms Officers CULTURE, MEDIA AND SPORT (AFO) in England and Wales as a less lethal alternative Arts Council England: Finance for use in situations where a firearms authority has been granted in accordance with criteria laid down in the Mr Bradshaw: To ask the Secretary of State for Association of Chief Police Officers Manual of Guidance Culture, Olympics, Media and Sport how much funding on the Management, Command and Deployment of from his Department the Arts Council holds in its Armed Officers. Since 20 July 2007 Taser has been reserves. [3556] deployed by AFOs outside of a firearms authority where officers are facing violence or threats of violence Mr Vaizey: The value of the Arts Council’s reserves of such severity that they would need to use force to at 31 March 2009 stood at £18.4 million. Following the protect the public, themselves and/or the subject(s). recent reductions to 2010-11 budgets, the Arts Council Since 1 December 2008, Taser is also used in similar will use £9 million of its reserves in 2010-11 to mitigate circumstances by specially trained units who are not the impact of these reductions on frontline arts authorised firearms officers. organisations. It has also been agreed that a further £7 million of these reserves will be returned to DCMS. Rape: Warrington These measures mean that the Arts Council’s reserves will be reduced to £2.4 million. Helen Jones: To ask the Secretary of State for the Bingo: Manpower Home Department how many people were arrested on suspicion of rape in Warrington in each of the last five years. [3827] Luciana Berger: To ask the Secretary of State for Culture, Olympics, Media and Sport whether he has James Brokenshire [holding answer 22 June 2010]: made a recent estimate of the number of people who The information requested on arrests is not available. are employed in bingo clubs. [3980] The arrests collection held by the Home Office covers John Penrose: The information requested is available arrests for recorded crime (notifiable offences) at main in the Gambling Commission Industry statistics. The offence group level, covering categories such as violence latest data for 2008-09 is available at the following against the person and sexual offences. It is not possible website: to separately identify arrests for individual offences such as rape. (page 6) http://www.gamblingcommission.gov.uk/pdf/ industry%20statistics%202008-2009%20- Smuggling: Ports %20August%202009.pdf.pdf

Charlie Elphicke: To ask the Secretary of State for the Departmental Mobile Phones Home Department what mandatory checks UK Border Agency staff carry out for (a) firearms, (b) drugs, Shabana Mahmood: To ask the Secretary of State for (c) illegal entrants into the UK and (d) trafficked Culture, Olympics, Media and Sport pursuant to the people at (i) Calais and (ii) other ports with ferry answer to the hon. Member for West Bromwich East connections to the UK. [4159] of 8 June 2010, Official Report, column 148W, on 287W Written Answers24 JUNE 2010 Written Answers 288W departmental mobile phones, what the (a) purchase amount will depend on the level of Lottery ticket sales. cost of the handset, (b) network provider, (c) type of Out of this sum, Big Lottery Fund is contributing tariff and (d) name of the supplier is of the mobile £172 million to the Olympic transfers. phone issued to each Minister in the Department. [3995] Television: Advertising

John Penrose: The Department uses Nokia mobile Mr Bradshaw: To ask the Secretary of State for phones and BlackBerrys, which are primarily used for Culture, Olympics, Media and Sport whether he plans data, although some do have the voice function enabled. to end contract rights renewal undertakings. [3554] As two year contracts have been entered for the mobile phones and BlackBerrys, we have not incurred Mr Vaizey: Responsibility for decisions on the future any costs for the handsets. Our mobile network provider of contract rights renewal undertakings rests with the is Vodafone and our Blackberry provider is O2. Mobile UK’s independent competition authorities. The phones are on the Teamwork Government tariff, and Competition Commission’s report on its review of whether BlackBerrys are on the Standard tariff. the undertakings should be varied was published on 12 May 2010. The Government are considering Departmental Public Expenditure representations it has received suggesting that it should take some form of action in relation to the contracts Gordon Banks: To ask the Secretary of State for rights renewal undertakings. Culture, Olympics, Media and Sport (1) how many of These representations are being considered in the his Department’s contracts with its suppliers are under wider context of the Government’s aim to reform the review as a result of the recently announced reductions regulatory regime in the media sector. in public expenditure; and what the monetary value is of all such contracts which are under review; [3634] (2) how many officials in his Department are working on renegotiating contracts for the supply of DEFENCE goods and services to the Department as a result of recently announced reductions in public spending; what savings are expected to accrue to his Department Armed Forces: Pensions from such renegotiations; how much expenditure his Department will incur on such renegotiations; and Michael Fallon: To ask the Secretary of State for when such renegotiations will be completed. [3656] Defence whether he plans to review the pension entitlement of regular members of the armed forces who were John Penrose: The work to review and renegotiate discharged before 5 April 1975 after fewer than 22 years’ contracts will be taken forward over the coming months, service. [4144] led by the Department’s existing procurement team of three staff and supported by colleagues who are users of Nick Harvey: No. Providing pensions for life this the goods or services involved in individual contracts as group, even if only paid from a future date, would cost needed. They will also be supported by project staff hundreds of millions of pounds. In addition, this issue from Cabinet Office as well. cannot be considered in isolation. Any changes applied to the armed forces schemes would raise similar legacy Listed Buildings: Compulsory Purchase issues across all public sector schemes, with financial implications running into billions of pounds. Mr Buckland: To ask the Secretary of State for Culture, Olympics, Media and Sport how many buildings in AWE Aldermaston England listed as (a) Grade 1 and (b) Grade 2 he has purchased by means of a compulsory purchase order Mr Mike Hancock: To ask the Secretary of State for since 1992. [3783] Defence pursuant to the answer of 8 June 2010, Official Report, column 93W, on the Atomic Weapons John Penrose: The records held by this Department, Establishment, whether his Department has requested dating back to April 2006, indicate that DCMS has not a defence environmental impact assessment exemption purchased any listed buildings via a compulsory purchase direction for the proposed new hydrodynamics facility, order during this period. To obtain information on the Project Hydrus, at the Atomic Weapons Establishment number of listed buildings purchased by DCMS by Aldermaston. [3574] means of a compulsory purchase order between 1992 and 2006 would incur disproportionate cost. Peter Luff: The Ministry of Defence is currently in National Lottery: Grants the process of requesting a Defence Environmental Impact Assessment Exemption Direction for Project Hydrus from the Secretary of State for Communities Mr Bradshaw: To ask the Secretary of State for and Local Government. Culture, Olympics, Media and Sport how much and what proportion of lottery funding he expects to be allocated to the Big Lottery in 2010-11. [3557] Departmental Pay

John Penrose: The Big Lottery Fund will receive 50% Tom Brake: To ask the Secretary of State for Defence of Lottery income in 2010-11. On current projections, how much was paid in bonuses to civil servants in his this would amount to £732 million, though the actual Department in 2009-10. [2184] 289W Written Answers24 JUNE 2010 Written Answers 290W

Dr Fox: Senior civil service (SCS) pay is managed by NORTHERN IRELAND the Cabinet Office and performance incentives are paid primarily as non-consolidated performance payments. Departmental Public Expenditure All satisfactory performers at SCS level were eligible to be considered for a non-consolidated performance award. In financial year 2009-10, permanent members Gordon Banks: To ask the Secretary of State for of the SCS received performance awards totalling Northern Ireland how many of his Department’s contracts £1,594,500, which was within the pay-bill ceiling of with its suppliers are under review as a result of the 8.6%. recently announced reductions in public expenditure; and what the monetary value is of all such contracts Senior fixed term appointees (FTAs) are recruited which are under review. [3645] from outside the civil service. They are on individual contracts and have a higher percentage of pay set to performance awards. In financial year 2009-10 senior Mr Paterson: The reductions in public expenditure FTA received performance awards totalling £838,393. recently announced by HM Treasury do not impact directly on any current policy or contractual responsibilities For staff below the SCS, performance awards are of the Northern Ireland Office (NIO). No contracts paid to staff who meet the eligibility criteria. between the Northern Ireland Office and current suppliers The Ministry of Defence (MOD) operates an in-year are, therefore, under review as a result of the recent non-consolidated special bonus scheme (SBS), which announcement. The Department does, however, keep rewards eligible MOD civilians for exceptional performance procurement under review at all times to ensure value in a specific task or for the achievement of a professional for money. qualification the use of which benefits MOD and the individual. Additionally, Ministry of Defence police Gordon Banks: To ask the Secretary of State for officers may be awarded a payment for exceptional Northern Ireland how many officials in his Department performance when dealing with particularly demanding are working on renegotiating contracts for the supply of one-off tasks or situations, unpleasant one-off tasks or goods and services to the Department as a result of situations, or important one-off tasks or situations. recently announced reductions in public spending; what End of year non-consolidated performance related savings are expected to accrue to his Department from pay awards made to staff below the SCS in financial such renegotiations; how much expenditure his Department year 2009-10 totalled £40,240,963. SBS awards made to will incur on such renegotiations; and when such staff below the SCS in financial year 2009-10 totalled renegotiations will be completed. [3667] £3,990,953. This response excludes information on staff below Mr Paterson: The reductions in public expenditure the SCS in MOD Trading Funds that have separate pay recently announced by HM Treasury do not impact delegations. directly on any current policy or contractual responsibilities of the Northern Ireland Office (NIO). No contracts North Atlantic Treaty Organisation between the Northern Ireland Office and current suppliers are, therefore, under review and no staff are engaged on renegotiation as a result of the recent announcement. Nicholas Soames: To ask the Secretary of State for The Department does, however, keep procurement under Defence what structural reforms to the North Atlantic review at all times to ensure value for money. Treaty Organisation he is seeking. [4060]

Dr Fox: If NATO is to succeed as a modern security alliance, it needs the capability and flexibility to adapt to new threats, with leaner, more efficient and more WALES effective structures. At a meeting of NATO Defence Ministers on 10-11 June, I was encouraged that progress Departmental Mobile Phones is being made on reforming its headquarters and rationalising its agencies. But as I made clear to the Tom Blenkinsop: To ask the Secretary of State for Secretary-General and to colleagues, NATO’s Command Wales pursuant to the answer to the hon. Member for Structure is also a key priority: it is too big, too static West Bromwich East of 7 June 2010, Official Report, and too much is not optimised for the challenges we column 12W, on departmental mobile phones, what the now face. Defence Ministers will review options for a (a) purchase cost of the handset, (b) network provider, revised structure in October. (c) type of tariff and (d) name of the supplier is of the mobile phone issued to each Minister in her Department. Puma Helicopters [3996]

Nicholas Soames: To ask the Secretary of State for Mrs Gillan: The mobile telephones issued by my Defence what timetable he has set for the Puma helicopter Department to Ministers are obtained through the central upgrade programme; and how many airframes will be procurement arrangements provided by the Ministry of available on completion. [4059] Justice. Under this arrangement, the telephones are on the standard Government tariff operated by Vodafone, Peter Luff: The Puma upgrade programme is progressing and incur a purchase cost of £50 and a monthly line to schedule and is expected to be complete by the end of rental charge of £2 plus VAT. The current telephones 2014 with 28 airframes being modified. are made by Nokia. 291W Written Answers24 JUNE 2010 Written Answers 292W

ENVIRONMENT, FOOD AND RURAL AFFAIRS Biodiversity by working to achieve a global agreement on a new biodiversity framework at the meeting of the Landfill Convention on Biological Diversity in Nagoya in October.

5. Michael Connarty: To ask the Secretary of State Icelandic Volcano: UK Environment for Environment, Food and Rural Affairs what her policy is on banning the use of landfill. [3941] Mrs Moon: To ask the Secretary of State for Environment, Food and Rural Affairs what assessment Mrs Spelman: The Government’s aim of moving has been made of the effects of the eruptions of the towards a zero waste economy includes reducing the active Icelandic volcano on the natural environment in amount of recyclable and biodegradable waste we send this country. [3940] to landfill. How best to do this will be part of the review of waste policies I announced last week but my instinct Richard Benyon: DEFRA has been assessing the impact is not to introduce an outright ban because of the of volcanic ash from Iceland’s volcano on the natural unintended consequences this might cause. There is an environment. Air, water and herbage samples from across economic and environmental imperative to reduce the the UK are being analysed for elevated levels of amount going to landfill and to recover as much valuable contaminants from the ash. Results indicate levels well material as we can. below those which may cause adverse effects. DEFRA British Waterways is monitoring the situation closely and making plans for further volcanic activity, including eruptions of greater magnitude. 7. Mr Virendra Sharma: To ask the Secretary of State for Environment, Food and Rural Affairs what plans she has for the future of British Waterways. [3943] Farm Animal Welfare

Richard Benyon: I made a statement on 21 June 2010, Andrew Gwynne: To ask the Secretary of State for Official Report, column 4WS, on inland waterways Environment, Food and Rural Affairs what steps she policy for England and Wales. The Government consider plans to take to promote farm animal welfare. [3950] civil society has a valuable role to play in delivering public services as part of the big society. We will be Mr Paice: We are committed to achieving high standards looking, in detail, at options for a third sector model of animal welfare and are working through the detail of which would be appropriate for British Waterways, policies to ensure that we accomplish this. including the possible inclusion of Environment Agency navigations. No decisions will be taken until after the Water and Sewerage Charges spending review. Government Food: Farm Assured Sources Mr Sanders: To ask the Secretary of State for Environment, Food and Rural Affairs if she will take steps to reduce the number of households spending 10. Chris Ruane: To ask the Secretary of State for more than 3 per cent. of their income on water and Environment, Food and Rural Affairs what plans she sewerage charges. [3959] has to increase the proportion of Government food procured from Farm Assured sources. [3946] Richard Benyon: The Government are examining the recommendations made in the Walker review of charging Mr Paice: We intend to do considerably better than for household water and sewerage services, ahead of the previous Government. We are committed to ensuring taking decisions on next steps. This includes the that food procured by Government Departments, and recommendations on water affordability. eventually the whole public sector, meets British or equivalent right hon. Friend the Secretary of State has written to ministerial colleagues asking them to look Farmers: Young People closely at how they can help to meet this objective. We do not believe that it is acceptable to use taxpayers’ Nicholas Soames: To ask the Secretary of State for money to buy food produced to lower standards than Environment, Food and Rural Affairs what steps she we expect of our own producers. plans to take to encourage young people to enter the farming industry. [4009] Biodiversity Mr Paice: The most important change needed to 20. Simon Kirby: To ask the Secretary of State for encourage young people to enter farming is to ensure Environment, Food and Rural Affairs what plans she that the industry is publicly supported and recognised has to increase levels of biodiversity; and if she will as important by the Government. The Government make a statement. [3956] have pledged to encourage increased food production and development of our food processing sector. Mrs Spelman: Biodiversity is one of my highest priorities, In addition DEFRA supports Fresh Start, an industry- I will be taking action domestically, through a White led initiative to encourage and support new entrants Paper on the natural environment and will promote into farming, including those involved in family succession, green spaces and wildlife corridors to restore and increase and to help established farmers think about how they biodiversity. At an international level, I will ensure the can develop their business in the future in the light of UK shows leadership in this International Year of CAP reform. 293W Written Answers24 JUNE 2010 Written Answers 294W

DEFRA also supports the industry-led Agri-Skills Details of the staff pay bands and staff pay arrangements Strategy which aims to promote the importance of are available on the parliamentary intranet. The salaries skills in making a profitable and sustainable industry of Members of the Management Board are disclosed in fully capable of meeting the demands and challenges of the House of Commons: Administration annual accounts. agriculture in the 21st century. Increasing the profitability and professionalism of farming will make it an increasingly Parliamentary Questions: Email attractive career choice for young people. Jo Swinson: To ask the hon. Member for Middlesbrough, Food: Security answering for the House of Commons Commission whether the House of Commons Commission has Nicholas Soames: To ask the Secretary of State for considered the merits of enabling the Official Report to Environment, Food and Rural Affairs what steps she accept written answers to parliamentary questions by plans to take to increase food security. [4010] e-mail. [4146]

Mr Paice: An assessment of UK Food Security was Sir Stuart Bell: The Commission recognise the merits published in August 2009 (and updated in January of securing more efficient ways of transferring written 2010) which shows that the UK enjoys a high level of material, including written answers to parliamentary food security. It is one of our priorities to ensure a questions, from Government Departments to the House. secure, environmentally sustainable and healthy supply The Official Report and PICT participated in a pilot of food in the face of future challenges. scheme, led by the Leader of the House’s Office, to establish within Government Departments a common, Wood: Imports structured means of transferring written material to the House, but that initiative was unsuccessful. Roberta Blackman-Woods: To ask the Secretary of House officials involved in the Procedural Data State for Environment, Food and Rural Affairs what Programme are now vigorously pursuing a new approach, her policy is on proposed EU legislation to control with the aim of establishing a secure electronic means imports of illegally-felled timber. [3869] of supplying questions to, and receiving answers from, Government Departments. Mr Paice: The UK is a strong supporter of EU legislation to eliminate the flow of illegal timber onto The House expects to realise the following benefits the market—commonly called the Due Diligence from e-delivery of questions and answers: less use of Regulation. The EU is close to agreement on a strong paper; less reliance on scanning technology, and thus regulation that will include a prohibition to prevent reduced support and maintenance overheads; less time illegal timber from entering the EU market. We are required to process hard copies of answers in the Official working with other EU member states, the Commission, Report, generating staffing efficiencies; and increased and the European Parliament to finalise this agreement. speed of publication. The UK is also providing support to voluntary bilateral The other current recipients of paper copies of trade agreements between timber producing countries answers—the Library, the Press Gallery and, of course, and the EU. These agreements require timber imports Members themselves—will be consulted on suitable from signatory countries to be licensed to prove that methods of delivery of answers in the future. they have been legally harvested. UK Youth Parliament:

Jo Swinson: To ask the hon. Member for Middlesbrough, HOUSE OF COMMONS COMMISSION answering for the House of Commons Commission what recent representations the House of Commons House of Commons Staff: Pay Commission has received from the UK YouthParliament on holding an annual sitting in the Chamber. [4147] Andrew Selous: To ask the hon. Member for Middlesbrough, answering for the House of Commons Sir Stuart Bell: Although the Commission has not Commission how many staff of the House Service in received any such representations, the UK YouthParliament each Department are remunerated at a rate above that has raised this possibility with the Speaker and others. of hon. Members. [4101] Preliminary discussions are taking place about another meeting in the Chamber in the autumn. Such a meeting Sir Stuart Bell: The basic salary payable to Members will require the approval of the House, as occurred on is £65,738 per annum. As at June 2010, 83 employees 16 March 2009. were paid an annual salary at a rate above this figure. The breakdown by Department is:

Department Staff numbers TRANSPORT Department of Chamber and 49 A5: M1 Committees Services Department of Facilities 7 Andrew Selous: To ask the Secretary of State for Department of Information 12 Services Transport what his most recent estimate is of the cost Department of Resources 15 of the A5-M1 link; what previous estimates have been Total 83 made of the cost of the scheme; and when each such estimate was made. [3833] 295W Written Answers24 JUNE 2010 Written Answers 296W

Mike Penning [holding answer 22 June 2010]: Due to Departmental Mobile Phones the uncertainty of certain costs when building a road, the Highways Agency calculates the maximum and Mr Watson: To ask the Secretary of State for Transport minimum forecast spend on the scheme to create a which Ministers in his Department have been issued range estimate. A figure in the middle of the range with (a) a BlackBerry, (b) an iPhone, (c) another estimate is then used for planning purposes. The current make of mobile telephone and (d) a personal digital scheme range estimate for the A5-M1 Link is £134 million assistant supplied by the Department. [1422] to £189 million with a mid range estimate of £162 million. This is based on a detailed review of scheme costs in Norman Baker: The following equipment has been September 2009. issued to Ministers: In relation to previous estimates, the July 2008 scheme range estimate was £121 million to £156 million with a Number mid range estimate of £139 million. This was based on Other M1 J10-13 being constructed as a widening scheme. Minister BlackBerry iPhone mobile PDA The March 2009 scheme range estimate was £160 million Secretary of State 11000 to £218 million with a mid range estimate of £189 million. Phillip Hammond This was based on an initial assessment of the cost of Minister of State 1000 A5-M1 Link following the decision to change M1 J10-13 Theresa Villiers from a widening to Managed Motorways scheme with Parliamentary Under- 1000 the resulting transfer of some statutory diversion and Secretary Norman structure works at Junction 11A to the A5-M1 scheme. Baker Parliamentary Under- 1000 Secretary Mike Bedford Station Penning 1 On order. Richard Fuller: To ask the Secretary of State for Neither PDAs nor iPhones have ever been issued to Transport for what reasons the redevelopment of Bedford Ministers. railway station as part of the Thameslink Programme has been designated non-critical. [3509] Departmental Translation Services Mrs Villiers: As part of the coalition Government’s commitment to prudent spending, work to create an Ian Austin: To ask the Secretary of State for Transport (a) (b) additional platform and new ticket hall at Bedford will what documents and other information for be deferred as these facilities are not needed until the which (i) his Department and (ii) its associated public London Bridge station redevelopment is completed. bodies are responsible are published or provided in the This work is currently scheduled to be completed at the UK in languages other than English; for what reason end of 2016. each such publication is required to be made available in a language or languages other than English; and We anticipate that platform extension work allowing what estimate he has made of the cost to the public 12 car trains to stop at Bedford will be finished by purse of the translation work so incurred in the latest December 2011 as planned. period for which figures are available. [1771]

Bus Services: Ashfield Norman Baker: The Department for Transport makes documents and other information available in languages Gloria De Piero: To ask the Secretary of State for other than English to ensure individuals understand Transport if he will allocate funding to support the their rights and have access to the Department’s services development of additional bus services serving Ashfield in accordance with human rights and race relations constituency. [4053] Acts, and to meet the requirements of the Welsh Language Act (1993). Information on individual translated documents Norman Baker: It is for local authorities to decide the and other information for the Department and associated best use of resources to fund local bus services. The public bodies can be provided only at disproportionate Department for Transport has no plans to provide cost. Documents are considered on a case by case basis specific direct funding for additional bus services in with regard to their purpose and likely readership and Ashfield. are translated only where necessary. The estimated cost of translations commissioned by Bus Services: Concessions the Department for the most recent financial year available is set out in the following table. Sadiq Khan: To ask the Secretary of State for Transport Translation costs1 what plans he has for future levels of expenditure on the £000 national concessionary bus travel scheme. [3911] 2009-102 Central Department (DFT(C)) 46.0 Norman Baker: The level of future funding for Driving Standards Agency 311.6 concessionary travel will be a matter for the spending (DSA) review. The Government’s commitment to protect free Driver and Vehicle Licensing 89.4 bus travel for older people is set out in the coalition Agency (DVLA) agreement. The right to free bus travel for both older Government Car and Despatch 30.0 and disabled people is enshrined in primary legislation. Agency (GCDA) 297W Written Answers24 JUNE 2010 Written Answers 298W

Translation costs1 The most recent National Passenger Survey dated £000 spring 2010 assessed First Capital Connect as providing 2009-102 an overall passenger satisfaction rate of 76%. Highways Agency (HA) 2.0 Maritime and Coastguard 8.8 London Underground: Finance Agency (MCA) Vehicle Certification Agency 0.8 Chris Evans: To ask the Secretary of State for Transport (VCA) what changes there will be made in the overall budget of Vehicle and Operator Services 385.5 London Underground in 2010-11 as a consequence of Agency (VOSA) the spending reductions announced on 24 May 2010. 1 These figures may include translations into English, but the [1673] majority of translations are from English into another language. 2 Data for 2009-10 expenditure are provisional and subject to audit—2009-10 resource accounts have yet to be published. Mrs Villiers: The Department for Transport has consulted 3 2008-09. the Mayor of London on a proposed reduction to East Coast Railway Line Transport for London’s grant in 2010-11. London Underground is a subsidiary of Transport for London (TfL) and it is for the Mayor to decide how to accommodate Miss McIntosh: To ask the Secretary of State for the reduction in TfL’s grant. Transport what recent representations he has received on the future of the East Coast Main Line route. The in-year reduction in grant funding to TfL is [2944] equivalent to just over 1% of TfL’s total 2010-11 budget.

Mrs Villiers: The Secretary of State has received a Midland Metro number of representations from Members of this House and others regarding plans for future timetable changes Ian Austin: To ask the Secretary of State for Transport on the East Coast Main Line. He has also received how much he plans to allocate to the (a) extension and representations regarding the possibility of co-operative (b) future development of the Midland Metro through organisations bidding for the next Inter City East Coast Dudley to Brierley Hill. [2383] franchise. Norman Baker: Until the spending review has been Electric Vehicles concluded, the Department for Transport is unable to provide any assurance on its intention to fund any Zac Goldsmith: To ask the Secretary of State for extensions to the existing Midland Metro Line One. Transport whether he plans to encourage the use of electric and plug-in hybrid vehicles; and if he will make Motorcycles: Driving Tests a statement. [3100]

Norman Baker: We announced in the coalition agreement, Mr Mark Williams: To ask the Secretary of State for that the Government will mandate a national charging Transport for what reason the Driving Standards infrastructure for electric and plug-in hybrid vehicles. Agency cancelled the motorcycle trainer workshops due to be held in (a) Twickenham on 26 January 2010 Electric and plug-in hybrid vehicle are currently supported and (b) Leeds on 29 January 2010. [3879] through the taxation system: drivers of such vehicles are exempt from paying vehicle excise duty and fuel Mike Penning: The Driving Standards Agency (DSA) duty; businesses which purchase electric and low carbon planned these motorcycle trainer workshops with the cars can claim enhanced capital allowances and people expectation that at least 250 trainers would attend each who use electric cars as their company car pay lower event. By mid January fewer than 30 trainers had registered rates of ‘benefit in kind’ taxation. for each event. DSA therefore decided to cancel as to In addition to the Department for Business, Innovation continue with the much smaller numbers would not and Skills’ recent announcement of support for Nissan’s have represented good value for money. manufacturing investments, the Department for Transport DSA is considering whether these events are the most is currently considering the provision of direct support effective way to engage and communicate with motorcycle for purchases of low-carbon vehicles, including electric trainers in the longer term. Given the current fiscal and plug-in hybrid vehicles, and will make a statement climate, there are no plans to reinstate these events as soon as possible. during the current financial year. First Capital Connect Railway Stations: Greater London Mr Umunna: To ask the Secretary of State for Transport what his most recent assessment is of the standard of Mr Umunna: To ask the Secretary of State for Transport passenger train services provided by First Capital Connect whether his Department made an assessment of the on the Thameslink franchise. [3742] merits of providing a station stop at Brixton on the East London Line London Overground extension. [3868] Mrs Villiers: The most recent assessment of First Capital Connect’s passenger service performance was Mrs Villiers: The case for a new station at Brixton for the period between 2 and 29 May 2010. Performance High Level was assessed in 2007 by Network Rail as has been improving with First Capital Connect achieving part of the South London Route Utilisation Strategy. a public performance measure figure of 93.5%. Because of its elevated position the new station was 299W Written Answers24 JUNE 2010 Written Answers 300W estimated to cost around £25 million. A decision was Mrs Villiers: The Department for Transport has worked therefore made, by Network Rail, that it could not be closely with Network Rail during the Northern Hub proceeded with at this time because of the cost involved. Rail Study. Network Rail is currently carrying out A decision to implement the new station is ultimately further development work on the Northern Hub, which a matter for the Mayor and Network Rail. includes a detailed review of each element of the project. The Department notes Network Rail’s assessment of Railways: Electrification the implications for the rail network and is aware of the benefits to the northern economy that investment in the Mrs Ellman: To ask the Secretary of State for Transport Hub and rail services would bring. No funding has yet what work has been commissioned in relation to the been allocated for the implementation of the Northern electrification of the (a) Liverpool-Manchester line Hub. The scope for future rail infrastructure investment and (b) London-Swansea line; and if he will make a will depend on decisions that will be made in the statement. [3499] comprehensive spending review in the autumn.

Mrs Villiers [holding answer 21 June 2010]: On both Road Signs and Markings: Sponsorship routes, Network Rail have carried out survey and early design work. Network Rail expect the projects to reach Mr Knight: To ask the Secretary of State for Transport ″ ″ the GRIP 2 stage later this summer, which means that if he will assess the merits of allowing the private the scope and costs will have been developed in sufficient sponsorship of road signs; and if he will make a statement. detail to support progress to the next stage of the [2308] development process. The Government support rail electrification as it Norman Baker: The private sponsorship of roadside helps to reduce carbon emissions and cut running costs. infrastructure is a matter for local highway authorities. However, our priority is tackling the fiscal deficit and However, it is not the lawful function of traffic signs to Ministers will consider the full range of proposed transport serve as advertisements and the Government have no projects in parallel with the spending review process to plans to assess the merits of allowing advertising on ascertain what is affordable. traffic signs. The information displayed on traffic signs and the number of signs provided must be kept to a Railways: North East minimum to avoid unnecessary driver distraction.

Mr Kevan Jones: To ask the Secretary of State for Roads: Repairs and Maintenance Transport what assessment he has made of the likely effect of cost savings by Network Rail on rail services in the North East in the next 12 months; and if he will Simon Kirby: To ask the Secretary of State for Transport make a statement. [1167] whether he plans to remove the link between the allocation of local authority highways funding and the requirement Mrs Villiers: Network Rail is required by the independent to observe national priorities. [3079] Office of Rail Regulation’s five-year periodic review settlement to deliver efficiency savings of 24% by the Norman Baker: No such explicit link exists, though in end of March 2014. It is for Network Rail to determine general terms, the Coalition Government have made how to make those efficiency savings. plain its intention to allow greater freedom to local authorities. Network Rail has now indicated that, subject to the consent of the Office of Rail Regulation, it will reduce No specific decisions will be taken on future funding its spending by a further £100 million on interventions for local authority highways until after the spending which yield lower value for money relative to other review. programmes. The benefit to Government will be realised this financial year but the reduction in expenditure will Rolling Stock be implemented over the remainder of the five-year Control Period 4 to the end of March 2014. Jim Dobbin: To ask the Secretary of State for Transport Network Rail has not given any indication of what if he will make more transparent the process for determining portion of this reduction in expenditure will expect the when extra rolling stock will be deployed to relieve North East of England. We do not expect this reduction passenger overcrowding on the railway network. [3721] to affect rail services. Mrs Villiers: The Government recognise the importance Railways: North West of addressing overcrowding problems on the rail network but all policy interventions are subject to appraisal Angela Smith: To ask the Secretary of State for which considers whether they provide value for money Transport whether his Department (1) has (a) established to the Exchequer. The appraisal process follows the a timetable and (b) allocated funding for the guidance published by the Department for Transport implementation of the Northern Hub project; [1589] website at: (2) what assessment his Department has made of the http://www.dft.gov.uk/webtag/ implications for the rail network of the proposed The process of determining rolling stock allocation Northern Hub project; [1590] to train operators involves complex commercial negotiations (3) whether he plans to undertake a review of the with industry parties, and is handled confidentially in Northern Hub project; and if he will make a statement. order to secure the best outcome for the taxpayer and [1622] the rail user. 301W Written Answers24 JUNE 2010 Written Answers 302W

Simon Reevell: To ask the Secretary of State for few years. Proposals by the previous administration for Transport how many carriages have been added to train the purchase of additional carriages will be appraised services in West Yorkshire in each of the last five years; and assessed for affordability, in parallel with the process and if he will make a statement. [3329] for determining the Department for Transport’s budgets for the spending review period. Mrs Villiers: In the past five years, additional carriages have been deployed on rail services in West Yorkshire in Severn Bridge: Repairs and Maintenance two phases. In December 2006 an additional 12 Class 158 carriages Jonathan Edwards: To ask the Secretary of State for were deployed for crowding relief in West Yorkshire. Transport what discussions he has had with Severn In December 2008 eight Class 158 carriages were River Crossing plc on liabilities for long term repairs added to enable a new Leeds-Nottingham hourly service when the bridges are taken into public ownership; and to be introduced. if he will make a statement. [1528] Simon Reevell: To ask the Secretary of State for Norman Baker: The Highways Agency meets regularly Transport how many carriages have been added to train with Severn River Crossing plc (SRC), which is the services in London and the South East in each of the concessionaire for the Severn Crossing, to ensure handover last five years; and if he will make a statement. [3330] arrangements are in place when the concession ends. SRC carries out a rigorous schedule of inspections to Mrs Villiers: As part of the High Level Output identify maintenance requirements and is required to Specification process, the following additional carriages maintain and repair defects in compliance with the are now being operated on services in London and the concession. south-east: At handover the condition of the bridges must be to Number an agreed standard, to enable the bridges to remain in a serviceable condition for the remainder of their design London Midland 28 lives. The risk for defects which existed before the start National Express East Anglia 16 of the concession, such as corrosion on the M48 Severn First Capital Connect 112 Bridge cables, was not transferred to SRC and remains Southeastern 48 the responsibility of the Secretary of State. Southern 6 Once the crossings have been handed back to the Total 210 Secretary of State, the cost of future maintenance and repairs will be the responsibility of the Government. Furthermore, in December 2009, 174 class 395 carriages were introduced on high speed train services in Kent. The SRC operates under a Concession Agreement Transport for London has ordered 216 new vehicles for (CA) which was signed in October 1990. The concession services on the North and East London lines, and most period began in April 1992 and will end when SRC has are in service. collected a defined amount of money from toll revenue (£995,830,000 in 1989 prices), or up to a maximum of Simon Reevell: To ask the Secretary of State for 30 years. The end date is currently predicted for the first Transport what plans his Department has to add carriages half of 2017. to train services in West Yorkshire in each of the next three years; and if he will make a statement. [3331] Written Questions: Government Responses

Mrs Villiers: Following the National Audit Office Mr Baron: To ask the Secretary of State for Transport Report entitled ‘Increasing Rail Capacity’, the Department when he plans to respond to the letter of 24 May 2010 for Transport is undertaking a reappraisal of the previous from the hon. Member for Basildon and Billericay on Government’s programme for additional rolling stock, his constituent Mrs Nadia McMahon. [4098] including a reassessment of the business case for each procurement in the light of the changed circumstances. This will review all the options. The proposals relating Mrs Villiers: I responded to my hon. Friend for to services in West Yorkshire will be part of this Basildon and Billericay on 22 June 2010. reassessment.

Mrs Ellman: To ask the Secretary of State for Transport what recent instructions he has issued in relation to the PRIME MINISTER provision of additional carriages on the rail network; and if he will make a statement. [3485] Decentralisation and Localism Bill Jonathan Reynolds: To ask the Secretary of State for Transport if he will issue a rolling stock plan giving John Healey: To ask the Prime Minister which Minister details of his Department’s plans to manage future will be responsible for introducing the Decentralisation trends in passenger numbers on the rail network. [3608] and Localism Bill. [3889]

Mrs Villiers: The Government are assessing their The Prime Minister: My right hon. Friend the Secretary policy for addressing crowding on the rail network in of State for Communities and Local Government will the light of overall spending constraints over the next be the Minister responsible. 303W Written Answers24 JUNE 2010 Written Answers 304W

Departmental Internet speak regularly with the Defence Secretary on range of issues relevant to Scotland, particularly once the implications Thomas Docherty: To ask the Prime Minister what of the Strategic Defence and Security Review are known. timetable he has set for the review of (a) e-petitions and (b) other on-line services on the 10 Downing street website. [3993] WORK AND PENSIONS The Prime Minister: I refer the hon. Member to the information on the No. 10 website at: Children: Maintenance http://www.number10.gov.uk/communicate/e-petitions Stephen Mosley: To ask the Secretary of State for Ministerial Policy Advisers Work and Pensions how many parents who were paying child support to the Child Support Agency Lisa Nandy: To ask the Prime Minister (1) whether directly from their salary by deduction from earnings his adviser on health and safety law and practice, the orders in financial year 2009-10 lost some or all of their right hon. Lord Young of Graffham, will receive (a) a payments after their employer went into receivership. salary, (b) expenses and (c) any other payment in that [3080] capacity; [4076] Maria Miller: The Child Maintenance and Enforcement (2) which candidates he considered for the position Commission is responsible for the child maintenance of adviser on health and safety law and practice. [4077] system. I have asked the Child Maintenance Commissioner to write to the hon. Member with the information The Prime Minister: I refer the hon. Member to the requested and I have seen the response. Press Notice issued by my Office on Monday 14 June 2010. A copy of which is available on the No. 10 website Letter from Stephen Geraghty: at: In reply to your recent Parliamentary Question about the Child Support Agency, the Secretary of State promised a substantive http://www.number10.gov.uk/news/latest-news/2010/06/pm- reply from the Child Maintenance Commissioner as the Child announces-review-of-health-and-safety-laws-51726 Support Agency is now the responsibility of the Child Maintenance Lord Youngwill not be receiving a salary, expenses or and Enforcement Commission. any other payment in relation to his work as my adviser You asked the Secretary of State for Work and Pensions, how on health and safety law and practice. many parents who were paying child support to the Child Support Agency directly from their salary by Deduction from Earnings Orders in financial year 2009-10 lost some or all of their payments after their employer went into receivership. [3080] SCOTLAND The information you requested is not available as the Child Maintenance and Enforcement Commission (the Commission) Departmental Mobile Telephones does not collate this type of information for management information purposes. However, you may find it helpful to know, as at March 2010, it is estimated that 117,600 cases are receiving maintenance Mr Khalid Mahmood: To ask the Secretary of State via a deduction from earnings order or request. for Scotland pursuant to the answer to the hon. In England and Wales, if the non-resident parent’s employer Member for West Bromwich East of 10 June 2010, enters bankruptcy or liquidation, the non-resident parent is responsible Official Report, column 224W, on departmental mobile for paying any maintenance which was deducted from their wages telephones, what the (a) purchase cost of the handset, by their employer and not paid over to the Commission, and for (b) network provider, (c) type of tariff and (d) name recovering any money deducted from their employer. They can do of the supplier was in respect of the telephone issued to this through lodging a claim in the insolvency proceedings. (i) him and (ii) the Parliamentary Under-Secretary of The official receiver or liquidator appointed to look after the affairs of the employer gives employees a comprehensive information State. [4061] pack which should cover every eventuality, including the non-payment of deductions to the Commission. If a non-resident parent has David Mundell: The information requested is as follows: specific questions not covered in this pack, they should contact (a) The purchase cost of each BlackBerry handset was £250. the official receiver or liquidator directly. (b) The network provider for both handsets is Vodafone. Scottish law is different. Any money deducted by a deduction (c) Both handsets are on the ’Teamwork + BlackBerry’ tariff. from earning order remains part of the non-resident parent’s wages until the Commission receives it. However the Commission (d) Vodafone supplied both handsets. is responsible for claiming the money and the Commission must lodge a claim in the insolvency proceedings for money deducted Devolution and not paid over. I hope you find this answer helpful. Ian Lucas: To ask the Secretary of State for Scotland what discussions his Department had with the Ministry Departmental Manpower of Defence on the implications of devolution prior to Royal Assent to the Scotland Act 1998. [4093] Mr Anderson: To ask the Secretary of State for Work and Pensions how many (a) front line and (b) other Michael Moore: None. As the Member will know, the staff were employed by (i) his Department and (ii) each Scotland Office only came into existence upon the of its agencies in the latest year for which figures are passing of the Scotland Act 1998. available; and what his most recent estimate is of the However, defence of the UK and associated industries annual cost to the public purse of employing staff of are very important to Scotland. As such, I intend to each type at each of those bodies. [544] 305W Written Answers24 JUNE 2010 Written Answers 306W

Chris Grayling: The number of staff employed by the recently announced reductions in public spending; what Department and each of its agencies as at 31 March savings are expected to accrue to his Department from 2010 is set out as follows: such renegotiations; how much expenditure his Department will incur on such renegotiations; and when such Pension, Departmental renegotiations will be completed. [3672] Disability and staff (shared Jobcentre Plus Carers Service services) Chris Grayling: All areas of DWP third party expenditure Front-line staff 80,742 12,737 1,392 are coming under close scrutiny to reduce costs either Other staff 1,905 1,232 10,847 through contract renegotiation, demand management Total 82,647 13,969 12,239 or collaboration with other Departments to generate Note: economies of scale. This work will be undertaken by Staff figures are shown as full-time equivalents. officials across the organisation in accordance with The Department categorises ‘front-line’ staff as guidance from the Efficiency and Reform Group. operational staff serving external customers and other staff directly supporting these functions. The costs associated with the figures cannot be supplied Employment Schemes: Young People without disproportionate cost. Mr Jim Cunningham: To ask the Secretary of State Departmental Mobile Phones for Work and Pensions what recent assessment he has made of the effects of the Young Person’s Guarantee in Mark Tami: To ask the Secretary of State for Work (a) the West Midlands and (b) Coventry. [3931] and Pensions pursuant to the answer to the hon. Member for West Bromwich East of 15 June 2010, Chris Grayling: The YoungPerson’s Guarantee is still Official Report, column 362W, on departmental mobile being maintained, and the next release of statistics will telephones, what the (a) purchase cost of the handset, be on 11 August. (b) network provider, (c) type of tariff and (d) name of the supplier was of the BlackBerry devices issued to Statistics are available on the Future Jobs Fund which (i) the Minister for Employment, (ii) the Minister for cover the period from October 2009 to January 2010. Disabled People and (iii) the Minister for Pensions. They show that there were 940 recorded Future Jobs [4065] Fund starts in the Jobcentre Plus west midlands region. The information requested on Coventry is not available. Chris Grayling: The purchase cost of each handset is The Future Jobs Fund created temporary, short-term £300. The managed service provider is BT and the jobs, and the grants did not include any incentives to network provider is Vodafone. The tariff used is the move people into permanent posts. The Government ‘Teamworker’ tariff—monthly rental and support charges are investing £150 million to create 50,000 new for each handset are £43.75. The costs of the DWP’s apprenticeship places which will equip people with the Blackberry service are higher than that available through skills they need and allow people to move into a long-term the retail market because of additional departmental job. Next year we are also introducing a new single requirements in relation to security and resilience. Work Programme which will provide better targeted These costs are identical with those incurred for the support and deliver long lasting benefits with a greater same service under the previous Government. focus on sustained employment. Until the new Work Programme is in place, the Departmental Public Expenditure Government will ensure that young people continue to receive the support they need. Gordon Banks: To ask the Secretary of State for Work and Pensions how many of his Department’s Mr Jim Cunningham: To ask the Secretary of State contracts with its suppliers are under review as a result for Work and Pensions (1) what steps he plans to take of the recently announced reductions in public expenditure; to support young people unemployed for more than six and what the monetary value is of all such contracts months to find employment; [3932] which are under review. [3650] (2) what steps he plans to take to support youth employment. [3934] Chris Grayling: All areas of DWP third party expenditure are coming under close scrutiny to reduce costs either through contract renegotiation, demand management Chris Grayling: The Government aim to have the new or collaboration with other Departments to generate Work Programme in place nationally by the summer of economies of scale. This work will be undertaken in 2011. This will help young people move into sustained accordance with guidance from Efficiency and Reform employment rather than temporary jobs, and everyone, Group. including young people, will have access to a fully The monetary value of all such contracts during integrated and coherent system of back to work support. 2009-10 was £4.2 billion. We are also planning further support for young people, including intensive work experience, more apprenticeships Gordon Banks: To ask the Secretary of State for and more further education places. Work and Pensions how many officials in his Department Although the precise design of the Work Programme are working on renegotiating contracts for the supply of is still in development, the Government will ensure that goods and services to the Department as a result of young people receive the support that they need. 307W Written Answers24 JUNE 2010 Written Answers 308W

Funeral Payments Future Jobs Fund

Mr Umunna: To ask the Secretary of State for Work Gordon Banks: To ask the Secretary of State for and Pensions what statistical evidence on the effectiveness Work and Pensions (1) how many funeral payments of the Future Jobs Fund programme he has (a) have been reclaimed in (a) England, (b) Wales, (c) commissioned and (b) evaluated; and if he will place in Scotland and (d) Northern Ireland in each year since the Library a copy of each such item of evidence. [4139] 2000; [2087] (2) what the value has been of funeral payments Chris Grayling: We are publishing official statistics reclaimed in (a) England, (b) Wales, (c) Scotland and covering the take-up of the Young Person’s Guarantee, including the Future Jobs Fund. The first release of (d) Northern Ireland in each year since 2000. [2088] official statistics, covering the period October 2009 to January 2010, was published in May 2010. A copy of Steve Webb: Information regarding funeral payments the statistical release has been placed in the Library of for Northern Ireland is a matter for my right hon. the House. The next release of official statistics is planned Friend the Secretary of State for Northern Ireland. to take place later this summer. The available information is in the tables. We plan to conduct a full evaluation of the Future Jobs Fund in 2011. Number of funeral payment claims on which some recovery was made in Great Britain by country and financial year Mr Umunna: To ask the Secretary of State for Work England Wales Scotland and Pensions how many people have received work 2000-01 990 90 200 placements through the Future Jobs Fund since the 2001-02 720 80 160 programme’s inception. [4142] 2002-03 1,600 140 230 Chris Grayling: The latest official statistics, covering 2003-04 1,810 140 250 the period from October 2009 to January 2010, show 2004-05 2,060 190 170 that nationally 8,660 people started jobs funded by the 2005-06 2,110 170 170 Future Jobs Fund. 2006-07 2,570 140 170 2007-08 1,990 140 170 Future Jobs Fund: Barnsley 2008-09 1,580 140 80 2009-10 560 60 40 Michael Dugher: To ask the Secretary of State for Work and Pensions how many people are in receipt of Funeral payment recovery amount in Great Britain by country and assistance from the Future Jobs Fund in (a) Barnsley financial year East and (b) the Metropolitan Borough of Barnsley. £ million [3978] England Wales Scotland

2000-01 0.56 0.06 0.13 Chris Grayling: The information requested is not 2001-02 0.41 0.05 0.12 available. However, the most recent Official Statistics 2002-03 0.86 0.06 0.15 covering the period October 2009 to January 2010 show 2003-04 1.00 0.07 0.14 that there were 700 recorded Future Jobs Fund starts in 2004-05 1.16 0.10 0.11 the Jobcentre Plus Yorkshire and Humberside region. 2005-06 1.09 0.08 0.11 Future Jobs Fund: Streatham 2006-07 0.85 0.05 0.09 2007-08 0.57 0.04 0.08 Mr Umunna: To ask the Secretary of State for Work 2008-09 0.61 0.05 0.06 and Pensions (1) how many residents of (a) the London 2009-10 0.17 0.01 0.04 Borough of Lambeth and (b) Streatham constituency Notes: have received work placements through the Future Jobs 1. Both tables are for funeral payment claims recovered in full or in Fund; [4140] part. 2. The number of funeral payments on which some recovery was (2) how many individuals have received work placements made has been rounded to the nearest 10 and the amount recovered to under the Future Jobs Fund at premises in Streatham the nearest £0.01 million. constituency since the programme’s inception. [4141] Source: DWP Social Fund Policy, Budget and Management Information Chris Grayling: The requested information is not System. available. However, across London the latest official statistics, covering the period October 2009 to January Mr Iain Wright: To ask the Secretary of State for 2010, show that 840 people started jobs funded by the Work and Pensions pursuant to the answer of 14 June Future Jobs Fund. 2010, Official Report, column 281W, on funeral payments, if he will increase the maximum amount Mortgages: Government Assistance payable as a funeral payment. [3235] Gordon Henderson: To ask the Secretary of State for Work and Pensions if he will assess the merits of Steve Webb: There are no current plans to increase bringing into line with the actual mortgage interest rate the maximum amount of £700 payable to cover paid by claimants of benefits under the Support for disbursements. Cremation and burial costs are not subject Mortgage Interest scheme the Standard Interest Rate to this limit and will continue to be paid in full. used to calculate such payments. [3220] 309W Written Answers24 JUNE 2010 Written Answers 310W

Steve Webb: Customer’s actual interest rates were Housing: Construction used in the past to calculate Support for Mortgage Interest. But that method was abandoned in 1995, in Ian Austin: To ask the Secretary of State for Communities favour of a standard interest rate, which has proved to and Local Government what (a) local authority housing be far more efficient and straightforward. and (b) other housing developments funded from the The pre-1995 arrangements, where customers’ actual public purse are under review as a result of the expenditure rates were used by the Department, were extremely reduction programme announced for 2010-11; how many complex to administer, prone to error and added cost. houses are to be provided in each such development; Reverting to that system carries an unacceptably high how much funding his Department has allocated to risk of increased overpayments and inefficiency, is resource each; at what address and in which parliamentary intensive, and would not support the Government’s aim constituency each is located; and if he will make a of simplifying the benefit system. statement. [2434]

Gordon Henderson: To ask the Secretary of State for Andrew Stunell: The announcement on 24 May set Work and Pensions whether his Department has made out the immediate savings of over £6 billion that needed an estimate of the (a) number and (b) monetary value to be made as down-payment on the public deficit. of excess payments made under the Support for Housing budgets for 2010-11 are also subject, however, Mortgage Interest scheme. [3221] to the provision of end year flexibility. The Chief Secretary to the Treasury announced on 17 June that he is reviewing Steve Webb: At the current Standard Interest Rate of the affordability of a range of end year flexibility agreements 6.08%, the Department for Work and Pensions has made by the previous administration, and an announcement estimated from a small sample of data that 92% (207,000) on the outcome of this is expected shortly. A full review of the 225,000 customers who received Support for of housing projects will be undertaken, once the final Mortgage Interest in November 2009 will receive awards funding position for 2010-11 is clear. in excess of their eligible mortgage interest outgoings. The Department’s systems do not hold information John Healey: To ask the Secretary of State for on the actual rate of interest hat Support for Mortgage Communities and Local Government what estimate he Interest customers pay, so no estimate of the monetary has made of the change to the number of homes to be value of excess payments is available. built under (a) the National Affordable Housing Programme, (b) the Kickstart scheme and (c) the Housing Market Renewal Programme as a result of the budgetary reductions announced on 24 May 2010. [4099] COMMUNITIES AND LOCAL GOVERNMENT Grant Shapps: The coalition Government are committed Departmental Public Expenditure to reducing the United Kingdom’s budget deficit. It has led us to identify savings across Government, starting Gordon Banks: To ask the Secretary of State for with the £6 billion of immediate savings this year that Communities and Local Government how many of his we announced on 24 May, including the £150 million Department’s contracts with its suppliers are under reduction against the previous Administration’s housing review as a result of the recently announced reductions pledge. Against this £170 million has been provided for in public expenditure; and what the monetary value is 2010-11 to safeguard delivery of around 4,000, otherwise of all such contracts which are under review. [3633] unfunded, social rented homes. It is estimated that the £150 million reduction will reduce the number of affordable Robert Neill: The Department is currently reviewing housing starts by around 5,000 but these changes will all new and existing contracts. The total value of all mainly fall to shared ownership and shared equity contract spend last year was £313 million. schemes—not social rented housing. The Department is consulting on the mechanism by Departmental Voluntary Work which the Housing Market Renewal reduction of £50 million will take place. In addition we will un-ring fence HMR expenditure in order to provide maximum John Healey: To ask the Secretary of State for flexibility at a local level. At this stage the final decision Communities and Local Government what the policy on individual allocations has still to be taken. It will be of his Department is on the recognition in staff appraisals for individual HMR Pathfinders to manage the reductions of staff who undertake voluntary activities outside his and to review the varying impact. Department. [3894] John Healey: To ask the Secretary of State for Robert Neill: The Department’s guidance on performance Communities and Local Government what guidance management does not require managers and staff to his Department provides to councils on assessing levels consider volunteering when assessing individual annual of housing need in their area. [4145] performance. However, the Department promotes a variety of Robert Neill: Planning Policy Statement 3: Housing development related volunteering opportunities to enable and the Strategic Housing Market Assessment Practice everyone to play an active part in their community. Guidance can assist local authorities on how to assess CLG staff are asked to record these activities within the level of housing need in their area. My right hon. their Personal Learning and Development Plans. Friend the Secretary of State wrote to the leader of 311W Written Answers24 JUNE 2010 Written Answers 312W each local authority in England on 27 May to reaffirm Andrew Stunell: At the start of 2010-11 the Decent our commitment to abolish regional strategies and return Homes budget was £848 million, covering the arm’s decision-making powers on housing and planning to length management organisation programme: local local councils. Decisions on housing supply will rest authority supported capital expenditure; and gap funding with local planning authorities without the framework arrangements that support some housing transfer schemes. of regional numbers and plans. No decisions to change this budget have been taken In the coalition agreement the Government stated since 6 May. These figures would have been lower had that they will publish and present to Parliament a funding reductions of £150 million not been made to simple and consolidated national planning framework the Decent Housing programme in July 2009. covering all forms of development. We will make an announcement on how we propose to take forward the John Healey: To ask the Secretary of State for national planning framework and the implications for Communities and Local Government what his policy is specific areas of planning policy. on completion of the Decent Homes programme in (a) local authority and (b) housing association properties. Housing: Hull [3884] Andrew Stunell: The Government believe all social Diana R. Johnson: To ask the Secretary of State for housing should meet a minimum standard of decency, Communities and Local Government what his policy is and will continue to invest in the Decent Homes programme on continuing the housing regeneration scheme for the as resources allow. Orchard Park Estate in Hull under the private finance initiative. [4028] John Healey: To ask the Secretary of State for Communities and Local Government when he expects Andrew Stunell: The Orchard Park Estate is a Round the refurbishment of social housing under the Decent 6 Housing PFI project. In July 2009 the council was Homes programme to be completed. [3885] invited to develop its outline business case following the Department’s acceptance of its Expression of Interest. Andrew Stunell: Completion of the backlog of repairs Since then, the council has reviewed its proposals and to council housing depends on additional capital resource. has been in discussion with the Homes and Communities Future funding for the Decent Homes programme will Agency regarding the submission of a revised scheme. be decided in the context of the Government’s Spending The Department will be taking a fresh look in the Review. These figures would have been lower had funding spending review at how its housing programmes, including reductions of £150 million not been made to the Decent Housing PFI, can best offer genuine value for money. Housing programme in July 2009.

Local Government Bill John Healey: To ask the Secretary of State for Communities and Local Government what estimate he has made of the number of (a) local authority and (b) John Healey: To ask the Secretary of State for housing association properties remaining to be refurbished Communities and Local Government how many officials under the Decent Homes programme on 31 March have been assigned to work on the Local Government 2012. [3887] Bill. [3891]

Robert Neill: Within my Department, the total number Andrew Stunell: Using social landlords’ statistical of officials currently working on the Local Government returns for the year 2008-09 we have forecast that 160,000 Bill is five full-time equivalents. local authority and 58,000 housing association properties will be counted as non-decent at the end of March 2012. These figures would have been lower had funding Rented Housing: Private Sector reductions of £150 million not been made to the Decent Housing programme in July 2009. Rushanara Ali: To ask the Secretary of State for Communities and Local Government what steps he plans to take in response to the recommendations of the Rugg Review on the private rented sector; and if he will BUSINESS, INNOVATION AND SKILLS make a statement. [4124] Business: Government Assistance Andrew Stunell: I refer the hon. Member to the answer I gave to my hon. Friend the Member for St Ives Priti Patel: To ask the Secretary of State for Business, (Andrew George) on 22 June 2010, Official Report, Innovation and Skills how many small and medium-sized columns 162-63W. businesses in Witham constituency have received support under each business support scheme operated by his Social Rented Housing: Standards Department since 2007. [3748]

John Healey: To ask the Secretary of State for Mr Prisk: The East of England Development Agency Communities and Local Government what his (EEDA) and Business Link hold business support data Department’s planned budget for the Decent Homes by local authority district. From these records EEDA programme was at the start of the 2010-11 financial has assisted one business in Witham since 2007, which year; and whether that budget has been changed since 6 received a £200,000 grant for research and development May 2010. [3883] (R and D). A further three other companies across the 313W Written Answers24 JUNE 2010 Written Answers 314W

Braintree local authority district have, or are in the (2) what proportion of the £50 million for further process of receiving support, one via an R and D grant education capital development announced on 17 June and the other two through Proof of Market funding. 2010, will be allocated to the College of North West Business Link has supported 8,174 SMEs and pre-starts London under that programme; [3982] across the Braintree local authority district since the (3) if he will take steps to compensate further beginning of 2007-08 financial year. education colleges whose capital budgets have been reduced as a result of Learning and Skills Agency Co-operatives and Social Enterprises management; and if he will make a statement. [4027] Mr Thomas: To ask the Secretary of State for Business, Mr Hayes: This Government fully appreciates the Innovation and Skills how many (a) registered social disappointment of those colleges who had planned enterprises and (b) co-operatives are registered in each capital projects put on hold by the Learning and Skills (i) region and (ii) parliamentary constituency. [2885] Council due to the lack of funding last year. Mr Hurd: I have been asked to reply. This Government cannot undo the previous Like other businesses, there is no single legal form for mismanagement of the FE Capital Programme but will social enterprise and as a result they are not required to ensure that all efforts are made to ensure it does not register with any one body.The figures from the Department happen again. for Business, Innovation and Skills’ Annual Small Business On the 24 May, as part of the Chancellor of the Survey (2005-07), suggest that there are at least 60,000 Exchequer’s statement on the £6 billion of efficiency social enterprises. savings to be realised in 2010/11, it was announced that Although we do not collect regional or parliamentary £50 million would be re-prioritised from Train to Gain constituency figures for co-operatives, Co-operatives to further education capital. On the 21 June, government UK report that there are over 4300 co-operatives in made a further announcement setting out the details for the UK. how this additional money would be invested. All colleges that received less than £5 million in grant Education Maintenance Allowance support since 2001 will receive a share of the £30 million renewal grant. This will support approximately 150 colleges Angela Smith: To ask the Secretary of State for in total across the country. Each will receive approximately Business, Innovation and Skills what plans he has for £225,000, with an expectation that such investment will the future provision of financial support for students facilitate considerable additional private finance. aged between 16 and 19 years. [1438] The remaining £20 million will be made available to the same colleges through an enhanced renewal grant. Mr Gibb: I have been asked to reply. At least 20 colleges will have the opportunity to add to I can confirm that the education maintenance allowance their renewal grant, by bidding to build their total (EMA) will be paid in full this year. In addition, eligible allocation to £1 million. Colleges will be expected to students may also get support for child care costs through attract substantial additional private finance, resulting the care to learn scheme, and hardship funds are provided in final projects of significant value. to eligible students through discretionary learner support funds. Longer term plans for financial support for Applications for the enhanced renewal grant will be students aged between 16 and 19 will be considered in assessed using key criteria, including the existing condition the context of the Comprehensive Spending Review in of bidding colleges’ estates and facilities; resulting benefits the autumn. to learners; and the contribution which each applicant’s proposals make to the regeneration of their local Food: Training community. Projects will be expected to meet exacting design standards, ensuring a built legacy of which all Mrs Main: To ask the Secretary of State for Business, concerned can be proud. Innovation and Skills if he will meet representatives of I understand that the College of North West London the British curry industry to discuss assistance from his had previously received capital grant support, and as Department for training for chefs in the industry. such, will not be eligible to access the £50 million fund. [4258] It is recognised that this may leave ineligible colleges feeling disappointed, but this Government believe it is Mr Hayes: I plan to meet with Sector Skills Councils right to target resource at those who have to date regularly to discuss their skills needs, including with benefited least and believe we will see significant People 1st who are responsible for skills and training in improvements for learners as a result. the hospitality industry. I know that People 1st has ongoing discussions with representatives from the Asian Higher Education: Anti-Semitism and Oriental catering industry and there is an agreed strategy in place. Mr Amess: To ask the Secretary of State for Business, Further Education: Finance Innovation and Skills (1) what meetings have been held of the higher education sub-group of the cross-government Glenda Jackson: To ask the Secretary of State for working group on anti-Semitism since his appointment; Business, Innovation and Skills (1) what criteria will be which officials at each civil service grade attended each used to determine the allocation of the £50 million meeting; what matters were discussed at each meeting; fund for further education capital development what further meetings are planned; and if he will make announced on 17 June 2010; [3981] a statement; [2933] 315W Written Answers24 JUNE 2010 Written Answers 316W

(2) what steps he plans to take to deal with anti-Semitism Financial Year/EPSRC funding for fusion research (a) on university campuses and (b) in student unions; £ million what recent discussions he has had on the issue with 2005/06 17.3 representatives of the Jewish community; and if he will 2006/07 22.3 make a statement. [2985] 2007/08 21.7 Mr Willetts [holding answer 22 June 2010]: There 2008/09 32.6 have been no meetings of the BIS Anti-Semitism and 2009/10 20.0 HE Group since my appointment. I have had no meetings so far to discuss anti-Semitism in higher education with Peru: EU External Trade representatives of the Jewish community. However, I am due to meet with representatives of the Jewish Zac Goldsmith: To ask the Secretary of State for community and the HE sector to discuss this issue and Business, Innovation and Skills if he will discuss with the work of the BIS Anti-Semitism and HE Group. (a) the European Commission, (b) members of the There is no place for racism of any form, including European Parliament and (c) his EU counterparts the anti-Semitism, in higher education, whether on campus environmental and social effects of the proposed EU or in student unions. Universities have access to a free trade agreement with Peru; and if he will make a strong legislative framework and guidance to help them statement. [3811] deal effectively with instances of intolerance, racism and harassment in their institutions. Government would Mr Davey: The EU-Andean (Peru and Colombia) expect them to vigorously tackle these issues when they Free Trade Agreement includes a clause covering arise and have supported institutions with key guidance environmental and social issues in the Trade and Sustainable on promoting good campus relations in the sector. Development Chapter. This clause commits both the EU and Peru and Colombia to environmental and labour standards rights. Nuclear Fusion: Research Throughout the negotiations, officials have discussed environmental and social issues with the European Caroline Lucas: To ask the Secretary of State for Commission, EU counterparts and Members of the Business, Innovation and Skills how much his Department European Parliament and, will continue to do so as the and its predecessors spent on nuclear fusion research in agreement progresses. (a) the UK and (b) abroad in each of the last 10 years; what resources and personnel have been provided by the Regional Development Agencies UK to the International Thermonuclear Experimental Reactor (ITER) international fusion project; and what response he plans to make to the request from the ITER Mr MacShane: To ask the Secretary of State for Business, Innovation and Skills what plans he has for consortium for additional resources. [3740] the future of Yorkshire Forward; and if he will make a statement. [3872] Mr Willetts: Figures for the Government funding of nuclear fusion research in the UK in each of the last 10 Mr Prisk: The Government will provide further detail years are given below. The Engineering and Physical on the future of the regional development agencies and Sciences Research Council (EPSRC) took over the how we propose to take forward our proposals for local responsibility for funding the fusion programme in enterprise partnerships shortly. 2003/04. Euratom also funds fusion research in the UK through Unemployment: Young People the United Kingdom Atomic Energy Authority. Euratom manages the European fusion research programme, Mr Jim Cunningham: To ask the Secretary of State including the European contribution to the International for Business, Innovation and Skills how many young Thermonuclear Experimental Reactor (ITER) fusion people in (a) the West Midlands and (b) Coventry research project. The UK does not provide direct funding have found (i) employment or (ii) a work placement as to ITER, but contributes indirectly to ITER through its a result of the Young Person’s Guarantee. [3930] payments to the EU budget. The Spanish presidency of the EU has set up a task Chris Grayling: I have been asked to reply. force to examine the ITER funding issue, and its conclusions The YoungPerson’s Guarantee is still being maintained, will be considered by the Council of Ministers in due and the next release of statistics will be on 11 August. course. Statistics are available on the Future Jobs Fund which Financial Year/UK Government expenditure on fusion research cover the period from October 2009 to January 2010. £ million They show that there were 940 recorded Future Jobs 2000/01 17.0 Fund starts in the Jobcentre Plus west midlands region. 2001/02 14.4 The information requested on Coventry is not available. 2002/03 14.6 Vocational Training: West Midlands Financial Year/EPSRC funding for fusion research £ million Mr Jim Cunningham: To ask the Secretary of State 2003/04 15.9 for Business, Innovation and Skills what steps he plans to take to improve (a) youth and (b) adult skills in (a) 2004/05 19.4 the West Midlands and (b) Coventry. [3933] 317W Written Answers24 JUNE 2010 Written Answers 318W

Mr Hayes: The Department for Business, Innovation Child Trust Fund and Skills is seeking to improve skills levels by directing public funding where it will bring the clearest benefits. Mr Umunna: To ask the Chancellor of the Exchequer We have begun to rebalance skills provision by pursuant to the answer of 9 June 2010, Official Report, redeploying £150 million of Train to Gain funding to column 188W,on the Child Trust Fund, whether parents create 50,000 high-quality apprenticeship places. We are and guardians will be able to take control of stakeholder also taking action to set colleges and training organisations Child Trust Fund accounts previously established by free from excessive bureaucracy and direct state control, HM Revenue and Customs for a child in receipt of a to give them the freedom to respond better to local voucher under the scheme after January 2011. [3805] needs and to make sure employers and individuals have the information they need to make the best choices Mr Hoban: On 24 May 2010 the Government announced about investing in training. that they intend to reduce and then stop all government Coventry and the West Midlands will gain from the contributions to Child Trust Funds from January 2011. refocusing of funding towards higher-quality training Child Trust Fund accounts will continue to operate as with clearer benefits and from the improved responsiveness they do now, whenever they happen to have been opened. of local training providers. As with all accounts, stakeholder accounts opened by HM Revenue and Customs on behalf of children, now and in the future, are under the full control of the TREASURY parents or legal guardian of the child. Parents or guardians can transfer the account to a different financial provider Black Economy or type of account, but the money remains the child’s and they cannot withdraw it until they turn 18. Dr Pugh: To ask the Chancellor of the Exchequer whether HM Revenue and Customs plans to extend its Departmental Official Cars programme of investigative work in relation to the hidden economy. [3812] Ian Austin: To ask the Chancellor of the Exchequer what his policy is on the use by Ministers in his Department Mr Gauke: HM Revenue and Customs (HMRC) is of cars allocated from (a) his Department’s pool and committed to cracking down on those who seek to (b) the Government car pool which are manufactured evade tax, including those who operate in the hidden in the UK; whether Ministers in his Department are economy. Through development of its data-matching entitled to request the use of a car manufactured in the techniques, the Department continues to improve its UK; and if he will make a statement. [2417] ability to identify and tackle individuals operating in the hidden economy. Justine Greening: The Treasury policy on the use of Government cars is in accordance with the recently Capital Gains Tax announced ministerial code. I also refer the hon. Member to the answer given to Gordon Banks: To ask the Chancellor of the him by the Parliamentary Under-Secretary of State for Exchequer what recent assessment he has made of the Transport (Mike Penning) on 14 June 2010, Official effect on the economy of the threshold of the tax-free Report, column 291W. allowance for capital gains tax. [3831] Devolution: Northern Ireland Mr Gauke [holding answer 22 June 2010]: No assessment has been made of the impact of the annual exempt amount (AEA) for capital gains tax on the economy. Ms Ritchie: To ask the Chancellor of the Exchequer what his policy is on the devolution of tax-varying The AEA will continue to rise in line with inflation powers to the Northern Ireland Assembly. [3539] and will remain at £10,100 for 2010-11. The estimated cost, which excludes any behavioural Danny Alexander [holding answer 21 June 2010]: The response, of the AEA for 2008-09 and 2009-10 is published Chancellor announced at his Budget statement that at: the Government will publish a paper on rebalancing the http://www.hmrc.gov.uk/stats/tax_expenditures/table1-5.pdf. Northern Ireland economy, in consultation with the This table is routinely updated following the publication Northern Ireland Executive, including examining potential of the Budget. mechanisms for changing the corporation tax rate in Northern Ireland. Child Benefit Double Taxation Alex Cunningham: To ask the Chancellor of the Exchequer (1) whether he has made an estimate of the Zac Goldsmith: To ask the Chancellor of the Exchequer likely level of uptake of child benefit if eligibility for it (1) what his policy is on continuing the provisions of were to be means-tested; [3722] Section 58 of the Finance Act 2008 in respect of UK (2) what estimate his Department has made of the residents and foreign partnerships; and if he will make a cost of administering child benefit if eligibility for it statement; [3745] were to be means-tested. [3777] (2) whether he plans to introduce proposals to repeal legislative provisions that ensure UK residents Justine Greening: The requested information is not retrospectively pay UK tax on their profits from foreign available. partnerships; and if he will make a statement. [3810] 319W Written Answers24 JUNE 2010 Written Answers 320W

Mr Gauke: UK residents are taxable on their worldwide Mr Hurd: I have been asked to reply. income wherever it arises—including situations where it The information requested falls within the responsibility arises by way of foreign partnerships. Section 58 of of the UK Statistics Authority. I have asked the authority Finance Act 2008 was enacted to help put that beyond to reply. doubt. The Government are, in general, opposed to Letter from Stephen Penneck: retrospective legislation. However, the retrospective element of section 58 is currently the subject of judicial review As Director General for the Office for National Statistics, I by the courts and the Government’s view is that it is have been asked to reply to your Parliamentary Question asking what recent estimate has been made of the average savings ratio of best dealt with there. households on (a) low and (b) middle incomes. (3231) ONS compiles and publishes an estimate of the saving ratio for Financial Services: Regulation the whole of the household and Non Profit Institutions Serving Households (NPISH) sector. This is referred to as the household Mr Thomas: To ask the Chancellor of the Exchequer saving ratio for short and is published quarterly in United Kingdom Economic Accounts. which body will have responsibility for the (a) supervision and (b) regulation of UK financial ONS does not compile estimates of the household saving ratio markets in the period to 2012; and if he will make a by level of income. statement. [4169] Public Expenditure: Wales Mr Hoban: The Financial Services Authority will Jonathan Edwards: To ask the Chancellor of the continue to regulate and supervise financial services Exchequer what estimate he has made of the Barnett and markets until the legislation implementing the formula consequentials for Wales of the measures Government’s proposals for reform has been enacted announced by the Chief Secretary to the Treasury in and commenced. his statement on public spending on 17 June 2010; and whether these consequentials were taken into account Mr Thomas: To ask the Chancellor of the Exchequer in (a) the consequential changes announced on if he will direct the Banking Commission to consider 24 May 2010 and (b) subsequent announcements. the future contribution of the financial services industry to increasing the positive effects of economic [3709] activity on the natural environment; and if he will Danny Alexander: There were no further Barnett make a statement. [4170] consequentials for Wales for the measures announced on 17 June 2010. Mr Hoban: The remit of the commission is outlined in the commission’s terms of reference, which are a Public Finance matter of public record and can be found at: http://www.hm-treasury.gov.uk/d/ Lisa Nandy: To ask the Chancellor of the Exchequer banking_commission_terms_of_reference.pdf by what mechanism he will consult the public on options As an independent commission, it will be at the for public expenditure cuts; and what information he commissioners’ discretion to consider representations plans to provide in order to inform that consultation. or evidence received on any relevant topic. [1703]

Mr Thomas: To ask the Chancellor of the Exchequer Danny Alexander: The Government published their what mechanism will be used to appoint the members proposals for the spending review on 9 June: The Spending of the Financial Policy Committee of the Bank of Review Framework (CM 7872). England. [4171] The Government are determined that this spending review process will be open, responsible and fair and Mr Hoban: The Government will set out more detail conducted in a way that protects the poorest and most on the Financial Policy Committee, including membership vulnerable in our society; in a way that unites our and appointments, in a consultation document to be country rather than divides it. The Budget announced published before the summer recess. that an engagement programme will launch on 24 June 2010, giving public sector workers and members of the Mr Thomas: To ask the Chancellor of the Exchequer publican opportunity to feed in their ideas for how to what time period will elapse between meetings of the reduce spending while protecting the quality of public Financial Policy Committee of the Bank of England services. and publication of its minutes. [4172] Tax Allowances: Christmas Mr Hoban: The Government will set out more detail on the Financial Policy Committee, including issues Andrew Gwynne: To ask the Chancellor of the relating to transparency and accountability, in a consultation Exchequer pursuant to the oral answer from the Prime document to be published before the summer recess. Minister of 2 June 2010, Official Report, column 428, what the evidential basis is for the statement that Personal Savings: Low Incomes Christmas parties are supported in the tax system. [3213] Mr Iain Wright: To ask the Chancellor of the Exchequer what recent estimate he has made of the average savings Mr Gauke: Section 264 of the Income Tax (Earnings ratio of households on (a) low and (b) middle incomes. and Pensions) Act 2003 exempts from tax the provision [3231] by an employer of an annual party or similar annual 321W Written Answers24 JUNE 2010 Written Answers 322W function open to all employees, such as a Christmas The Office for National Statistics 2007 mid-year party, subject to an aggregate limit of £150 per person. population estimate for the UK indicates there were 38 million individuals aged 16 or over and below state Tax Allowances: Married People pension age and so liable for national insurance contributions (NICs) if they have earnings or profits Andrew Gwynne: To ask the Chancellor of the Exchequer from self-employment above the relevant thresholds. what assessment he has made of whether implementation Individuals overstate pension age, of which there of the Government’s proposals to introduce transferable were nearly 12 million in 2007, are not liable to pay tax allowances for married couples will take place at a NICs. net cost to the Exchequer. [3214] An estimated 29 million individuals paid NICs in 2007-08, the latest year for which information is available. Mr Gauke: I refer the hon. Member to the answer Further details can be found using the Department for given to the hon. Member for Bristol East (Kerry Work and Pension’s tabulation tool based on a 1% McCarthy) on 9 June 2010, Official Report, column sample of national insurance records: 189W. http://83.244.183.180/NIRS/live/tabtool.html Tax Avoidance and Evasion Estimates for those aged 16 and over in full-time further or higher education paying and not paying Jonathan Edwards: To ask the Chancellor of the NICs are not available. Exchequer if he will bring forward plans for a All individuals pay VAT on any purchases of goods comprehensive anti-tax avoidance and evasion strategy and services that are subject to VAT. as a part of his Department’s fiscal policy. [3053] Welfare Tax Credits: Standards Mr Gauke: I refer the hon. Gentleman to the answer given to him on 14 June 2010, Official Report, column Mark Lancaster: To ask the Chancellor of the Exchequer 275W. what recent estimate he has made of the average time Tax Evasion: Publicity taken to (a) process an application for and (b) make an award of tax credits. [3775] Katy Clark: To ask the Chancellor of the Exchequer Mr Gauke: In 2009-10, HM Revenue and Customs how much HM Revenue and Customs has spent on aimed to pay 60% of tax credits new claims in 15 days. advertising for the purposes of preventing tax evasion The provisional outturn for 2009-10 is 58%. The in each of the last three years. [3776] disaggregated information requested is not available. Mr Gauke: HM Revenue and Customs spent £633,284 (excluding VAT) on advertising for the purposes of preventing tax evasion last year. There was no expenditure in the previous two years. LEADER OF THE HOUSE Unpaid Taxes Departmental Mobile Phones

Dr Pugh: To ask the Chancellor of the Exchequer Mr Watson: To ask the Leader of the House which what plans he has to increase the rate of recovery of Ministers in his Office have been issued with (a) a tax debt. [3813] BlackBerry, (b) an iPhone, (c) another make of mobile telephone and (d) a personal digital assistant supplied Mr Gauke: The Chancellor announced in the Budget by the Cabinet Office. [4113] that HM Revenue and Customs (HMRC) will contract debt collection agencies to recover additional monies Sir George Young: One Minister in the Office of the from existing tax debts. HMRC estimate that this will Leader of the House of Commons has been issued with lead to an additional £140 million revenue accruing to a Blackberry which was previously used by Cabinet the Exchequer. Office staff. HMRC’s 2010-11 Business Plan provides further information on the Department’s plans to improve its tax debt recovery operations: http://www.hmrc.gov.uk/about/bus-plan-2010-11.pdf CABINET OFFICE VAT Breast Cancer

Vernon Coaker: To ask the Chancellor of the Exchequer Yvonne Fovargue: To ask the Minister for the Cabinet if he will estimate how many (a) individuals, (b) retired Office how many women in (a) the Metropolitan borough pensioners and (c) people over the age of 16 in full-time of Wigan, (b) the North West and (c) England (i) were further and higher education who did not pay national diagnosed with and (ii) died from breast cancer in each insurance contributions in 2009-10 paid value added of the last five years. [3139] tax on household purchases. [3287] Mr Hurd: The information requested falls within the Mr Gauke [holding answer 21 June 2010]: The precise responsibility of the UK Statistics Authority. I have information requested is not available. asked the authority to reply. 323W Written Answers24 JUNE 2010 Written Answers 324W

Letter from Stephen Penneck, dated June 2010: Mr Maude: No BlackBerrys, iPhones, other mobile As Director General for the Office for National Statistics, I phones or personal digital assistants have been issued to have been asked to reply to your recent question asking how many any Government Whips or Assistant Whips in the Cabinet women in (a) the Metropolitan Borough of Wigan, (b) the North Office. West and (c) England (i) were diagnosed with and (ii) died from breast cancer in each of the last five years. [3139] Electoral Register The latest available figures for newly diagnosed cases of breast cancer (incidence) are for the year 2007, while the latest provisional Dr Whitehead: To ask the Minister for the Cabinet figures for deaths are for the year 2009. Please note that the Office what his most recent estimate is of (a) the number of breast cancer cases may not be the same as the number number of people registered to vote and (b) the number of people diagnosed with cancer, because one person may be of people aged 18 years and over resident in each diagnosed with more than one cancer. constituency in England and Wales. [3148] Table 1 provides the number of (i) newly diagnosed cases of breast cancer in women from 2003 to 2007 and Table 2 provides Mr Hurd: The information requested falls within the the number of (ii) deaths from breast cancer in women from 2005 responsibility of the UK Statistics Authority. I have to 2009, for (a) Wigan metropolitan district, (b) North West asked the authority to reply. government office region and (c) England. Letter from Stephen Penneck: 1 Table 1: Registrations of newly diagnosed cases of breast cancer , As Director General for the Office for National Statistics, I females2, Wigan metropolitan district, North West Government office 3 4 have been asked to reply to your Parliamentary Question asking region and England , 2003 to 2007 what the most recent estimate is of (a) the number of people Area 2003 2004 2005 2006 2007 registered to vote and (b) the number of people aged 18 years and over resident in each constituency in England and Wales (3148). Wigan 209 213 210 227 204 Table 1 shows the number of people registered to vote in North 5,002 5,186 5,311 5,383 5,269 West parliamentary elections for each parliamentary constituency in England and Wales, as at 1st December 2009. Table 2 shows the England 37,584 37,855 38,733 38,550 38,048 mid-year estimate of the population aged 18 and over by parliamentary 1 Breast cancer is coded as C50 in the International Classification of constituency, in England and Wales for 2007. A copy of the tables Diseases, Tenth Revision (ICD-10). has been placed in the House of Commons Library. 2 Around 99% of breast cancer cases are in women. 3 Based on boundaries as of 2010. These are the latest figures that are available. There have been a 4 Newly diagnosed cases registered in each calendar year. number of boundary changes to parliamentary constituencies in Table 2: Number of deaths where breast cancer was the underlying England and Wales between 2007 and 2009. cause of death1, females, Wigan metropolitan district, North West government office region, and England2, 3, 2005 to 20094, 5 Dr Whitehead: To ask the Minister for the Cabinet Area 2005 2006 2007 2008 2009 Office what his most recent estimate is of the number of people aged 18 years and over resident in each Wigan 51 62 49 60 57 constituency in England and Wales who are registered North 1,385 1,394 1,344 1,313 1,295 to vote. [3149] West England 10,297 10,243 9,986 10,065 9,749 Mr Hurd: The information requested falls within the 1 Cause of death was defined using the International Classification of responsibility of the UK Statistics Authority. I have Diseases, Tenth Revision (ICD-10) code C50. asked the authority to reply. 2 Based on boundaries as of 2010. 3 Figures do not include deaths of non-residents. Letter from Stephen Penneck, dated June 2010: 4 Figures are for deaths registered in each calendar year. As Director General for the Office for National Statistics, I 5 Figures for deaths registered in 2009 are provisional. have been asked to reply to your Parliamentary Question asking what the most recent estimate is of the number of people aged 18 years and over resident in each constituency in England and Departmental Mobile Phones Wales who are registered to vote (3149). The table shows the number of people registered to vote aged 18 and over in each parliamentary constituency in England and Mr Watson: To ask the Minister for the Cabinet Wales as at l December 2009. Figures provided exclude people Office whether the (a) Minister without Portfolio, the who are registered as overseas electors and who are not resident in right hon. Baroness Warsi and (b) the Leader of the England and Wales. A Copy of the table has been placed in the House of Lords, the right hon. Lord Strathclyde have House of Commons Library. been issued with (i) a BlackBerry, (ii) an iPhone, (iii) These estimates are the best approximation to the figures you another make of mobile telephone and (iv) a personal request however, the registered electorate may include some voters digital assistant supplied by a Government Department. who are not currently resident. This is because people who have [4112] more than one address may register in more than one place (e.g. students may register at parental and term-time addresses) and electoral registration officers vary in how quickly they remove Mr Maude: No BlackBerrys, iPhones, other mobile people from the registers after they have moved away from an phones or personal digital assistants have been issued to area or died. This can affect the comparability of figures across the Minister without Portfolio, the right hon. Baroness parliamentary constituencies. Warsi and the Leader of the House of Lords, the right Non-departmental Public Bodies hon. Lord Strathclyde in the Cabinet Office. John Mann: To ask the Minister for the Cabinet Office Mr Watson: To ask the Minister for the Cabinet which non-departmental public bodies his Department Office which Government (a) Whips and (b) Assistant is assessing on their suitability of purpose and cost- Whips in both Houses have been issued with (i) a effectiveness. [3435] BlackBerry, (ii) an iPhone, (iii) another make of mobile telephone and (iv) a personal digital assistant. [4183] Mr Maude: All of them. 325W Written Answers24 JUNE 2010 Written Answers 326W

HEALTH impact to UK businesses; the assessment will be completed when the maximum European Commission’s proposal Departmental Mobile Phones on permitted levels for vitamins and minerals is published. The impact assessment is made at the UK level and Mr Khalid Mahmood: To ask the Secretary of State does not consider individual counties or towns separately. for Health pursuant to the answer to the hon. Member The impact assessment will form part of a public for West Bromwich East of 14 June 2010, Official consultation on the proposals. Report, column 262W, on departmental mobile telephones, what the (a) purchase cost of the handset, Drugs and Alcoholic Drinks: Rehabilitation (b) network provider, (c) type of tariff and (d) name of the supplier was in respect of the BlackBerry devices Mark Lazarowicz: To ask the Secretary of State for issued to each Parliamentary Under-Secretary of State. Health what steps he plans to take to improve health [4062] outcomes for those treated for alcohol or drug abuse. [3326] Anne Milton: Each Parliamentary Under-Secretary of State has been issued with a BlackBerry device at an Anne Milton: Alcohol and drugs are major public individual cost of £196.50 plus VAT, on the Vodafone health issues. In England, primary care trusts (PCTs) “Teamwork+BlackBerry” tariff, supplied by the are responsible for arranging to meet the local needs of Department’s Information Services Division. those with alcohol and/or drug related problems and ensuring that services commissioned are of the required Dietary Supplements: EU Law quality. Robert Halfon: To ask the Secretary of State for We are determined to help the national health service Health (1) who has attended each meeting at EU level ensure effective commissioning of services, focusing on to discuss European legislation on food supplements in good outcomes from treatment, including that for alcohol the last 24 months; what reports he has received on and drug problems. We will set out our plans in more each such meeting; what decisions he has taken as a detail in the coming months. result of those reports; and if he will make a statement; The Department’s Alcohol Improvement Programme [3702] supports the NHS to help them commission improvements (2) what criteria he used in deciding which officials in in alcohol prevention and treatment, through: his Department would undertake negotiations in the guidance on effective commissioning and treatment; EU on maximum permitted levels for vitamins and data from the National Alcohol Treatment Monitoring System minerals in food supplements; what technical expertise and local alcohol profiles for England to help PCTs understand is available to those officials; and if he will make a local need in relation to alcohol harm; and a National Support Team for Alcohol, providing support in statement; [3703] areas with the highest rates of alcohol-related hospital admissions. (3) what information he has on the likely timetable Together the Department, the National Institute for for the publication by the European Commission of Health and Clinical Excellence and the National Treatment proposals for maximum permitted levels for vitamins Agency for Substance Misuse (NTA) have produced a and minerals in food supplements under the provisions comprehensive suite of evidence-based guidance on of Article 5 of the Food Supplements Directive; and drug treatment for those commissioning and delivering what assessment he has made of the likely economic services. effects of implementation of those levels on businesses in (a) Harlow, (b) Essex and (c) the UK. [3704] To improve the availability, capacity and effectiveness of treatment for drug misuse in England, the NTA Anne Milton: Food Standards Agency (FSA) officials provides drug service providers with practical support have attended each meeting at the EU level to discuss and encouragement, while data from the National Drug European legislation on food supplements in the last 24 Treatment Monitoring System allows PCTs to more months. There have been no European Union level accurately plan and target resources for their drug meetings on this subject since this Government was misuse services. formed and therefore no reports have been received. We will be conducting a full review of sentencing A team of FSA officials are responsible for this issue. policy to ensure that it is effective and that sentencing While officials at grade 7 and above in seniority will for drug use helps offenders to come off drugs. We will normally represent the United Kingdom in EU level also explore alternative forms of secure, treatment-based discussions, the FSA deploys staff resources flexibly, accommodation for drugs offenders. using to the best effect the available skills and expertise, Hospitals to ensure that the UK is best able to deliver its objectives. The FSA team includes officials with relevant scientific Mr Iain Wright: To ask the Secretary of State for qualifications and expertise. Additional technical expertise Health what estimate he has made of the optimum is available from independent scientific experts and food population size which general hospitals should serve. supplement industry experts as necessary. [4105] The European Commission has indicated that discussions will continue at working group level later in 2010. A Anne Milton: Each community in England is unique date has not been set for publication by the European in terms of its population, their distribution and health Commission of proposals for maximum permitted levels needs. Therefore, national health service organisations for vitamins and minerals in food supplements under design their facilities to best respond to these local the provisions of article 5 of the food supplements health needs to deliver high quality care. Centrally directive. An impact assessment is being prepared according linking population size and hospital types would therefore to cabinet office guidelines, which will include economic fail to provide the service the public deserve. 327W Written Answers24 JUNE 2010 Written Answers 328W

Mr Iain Wright: To ask the Secretary of State for Patients: Per Capita Costs Health what his policy is on (a) specialist centres of excellence and (b) general district hospitals. [4106] Mr Iain Wright: To ask the Secretary of State for Health what the average cost of admission to hospital Mr Lansley: We believe that patients should have per patient was at (a) the University Hospital of access to the right treatment, at the right place and at Hartlepool, (b) the University Hospital of North Tees, the right time. We require that quality health care (c) James Cook University Hospital and (d) all services reflect considerations of safety, quality standards hospitals in England in the latest period for which and access. We believe services should be locally accessible figures are available. [4102] wherever possible; and centralised where necessary. Judgments about this balance must, as I made clear in Mr Lansley: The information is not collected centrally. my statement of 21 May, take full account of clinical However, it is possible to estimate the average cost of evidence, public engagement, general practitioner each episode of admitted patient care under a consultant commissioning and referral intentions, and the current using information collected in national health service and prospective pattern of patient choice. reference costs, most recently covering the financial year 2008-09. Figures are provided in the table for these Hospitals: Buildings NHS organisations and for England. Data for all NHS organisations in England is available from the Department’s Mr Iain Wright: To ask the Secretary of State for website at: Health what assessment he has made of the clinical www.dh.gov.uk/en/Publicationsandstatistics/Publications/ outcomes for patients in hospital buildings that are PublicationsPolicyAndGuidance/DH_111591. older that 10 years. [4103] Table: Average cost of admitted patient care under the care of a consultant in 2008-09 Anne Milton: The national health service delivers Average unit cost per finished patient services in buildings from a wide range of ages. consultant episode (FCE) The NHS is expected to ensure that its buildings are North Tees and Hartlepool NHS £1,200 functionally suitable to deliver safe and high quality Foundation Trust care, regardless of when they were built. South Tees Hospitals NHS Foundation £1,400 Trust North Tees and Hartlepool NHS Foundation Trust Average for all hospitals in England £1,300 Notes: Mr Iain Wright: To ask the Secretary of State for Health 1. The figures in the table are derived from organisation level reference costs and from schedule 1 (NHS trusts) of the 2008-09 national schedules of what is the estimated (a) reactive and (b) planned reference costs. repairs and maintenance cost for the (i) University 2. The figures were calculated by summing the product of activity (FCEs and Hospital of Hartlepool and (ii) University Hospital of excess bed days) and average unit costs, and dividing by total FCEs, for all health care resource groups in the day case, elective inpatient and non-elective North Tees in each of the next three years. [4104] inpatient schedules. 3. FCEs are the unity of activity for reference costs and cover a patient’s Mr Lansley: The information is not available in the period in the care of a consultant in hospital. There may be more than one FCE during a patient’s spell of care between admission and discharge. format requested. The information that is available is 4. The figures are rounded to the nearest £100. shown in the following table. 5. University Hospital of Hartlepool and University Hospital of North Tees are part of North Tees and Hartlepool NHS Foundation Trust. Backlog maintenance data for the university hospital of Hartlepool and the 6. James Cook University Hospital is part of South Tees Hospitals NHS university hospital of North Tees for 2008-09 Foundation Trust. University hospital University hospital of Hartlepool of North Tees

High risk (£000) 250 250 WOMEN AND EQUALITIES Significant risk (£000) 430 500 Medium risk (£000) 3,000 5,000 Civil Partnerships Low risk (£000) 4,000 5,770 Total (£000) 7,680 11,520 Mr Bain: To ask the Minister for Women and Equalities what discussions she has had with leaders of religious groups on the Government’s policy on allowing same-sex Total backlog maintenance/ 178.99/m2 157.04/m2 occupied floor area (£) couples to register relationships in a religious setting. Notes: [4163] 1. National health service organisations are locally responsible for the provision and maintenance of their facilities. This includes planning and Lynne Featherstone: The Government published investment to reduce backlog maintenance. This data has not been amended centrally and its accuracy is the responsibility of the contributing NHS “Working for Lesbian, Gay, Bisexual and Transgender organisations. Equality” on 16 June 2010. This document sets out a 2. Backlog maintenance is the capital investment required to bring a trust’s programme of work to tackle discrimination and ensure estate up to an appropriate standard. The latest available data is for 2008-09, which has been provided in the table. equal opportunities for Lesbian, Gay, Bisexual and 3. High risk backlog maintenance is defined as urgent priority work needed to Transgender people. prevent catastrophic failure, major disruption to clinical services or deficiencies resulting in serious injury or prosecution. It confirms our support for civil partnerships and sets 4. Significant risk backlog maintenance is defined as work that requires short- out our commitment to term expenditure but can be effectively managed to avoid risk to health care “talk to those with a key interest in this issue about what the next services or concern to enforcement bodies. 5. Moderate risk backlog maintenance is defined as work that requires close stage should be for civil partnerships, including how some religious control and monitoring but can be managed in the medium term. organisations can allow same-sex couples the opportunity to 6. Low risk backlog maintenance is defined as work that can be addressed register their relations in a religious setting is they wish to do so”. through agreed maintenance programmes or through strategic plans. Source: We will be talking with leaders of religious groups as Estates Returns Information Collection (ERIC) 2008-09 part of this process. 329W Written Answers24 JUNE 2010 Written Answers 330W

EDUCATION GCSE results of pupils at the end of key stage 4 in academies in 2009 Percentage of Academies: GCSE Percentage of pupils achieving pupils 5+ A*-C achieving 5+ including English Tristram Hunt: To ask the Secretary of State for A*-C and Maths Education what proportion of year 11 pupils at (a) academy schools and (b) each academy school obtained Grace Academy Coventry 32 27 at least five GCSEs at A*-C grade, excluding equivalents Shireland Collegiate 27 26 in 2008-09 in (i) any subject and (ii) including English Academy and mathematics. [2786] George Salter Collegiate 25 24 Academy Mr Gibb: The information requested is presented in Q3 Academy 50 43 the following table: RSA Academy 17 16 Grace Academy Solihull 31 19 GCSE results of pupils at the end of key stage 4 in academies in 2009 CTC Kingshurst Academy 43 41 Percentage of Walsall Academy 61 56 Percentage of pupils achieving pupils 5+ A*-C Sheffield Community 22 21 achieving 5+ including English Academy A*-C and Maths The Academy of St Francis 22 17 of Assisi St Pauls Academy 66 56 North Liverpool Academy 30 26 Mossbourne Community 83 82 The Belvedere Academy 99 96 Academy Essa Academy 39 35 Burlington Danes Academy 52 49 Manchester Academy 33 32 City of London Academy - 42 34 William Hulme’s Grammar 88 85 Islington School Lambeth Academy 42 35 St Anne’s Academy 31 30 Haberdashers’ Aske’s 90 86 Salford City Academy 38 32 Hatcham College Haberdashers’ Aske’s 28 25 Oasis Academy 37 31 Knights Academy MediaCityUK St Matthew Academy 21 19 Stockport Academy 25 20 City of London Academy 47 38 New Charter Academy 32 28 (Southwark) The Barnsley Academy 7 7 Harris Academy at 27 24 Trinity Academy 50 46 Peckham Sheffield Park Academy 2 2 Harris Academy 47 44 Sheffield Springs Academy 13 13 Bermondsey Dixons City Academy 87 86 Harris Girls’ Academy East 40 35 Dulwich Bradford Academy 22 19 Walworth Academy 30 30 David Young Community 24 22 St Michael and All Angels 23 22 Academy C of E Academy Excelsior Academy 12 10 Bacon’s College 70 53 Academy 360 16 15 Globe Academy 34 31 The City Academy Bristol 37 32 Ashcroft Technology 66 63 Bristol Brunei Academy 26 22 Academy Bristol Cathedral Choir 83 78 Paddington Academy 39 32 School Westminster Academy 31 29 Colston’s Girls’ School 100 85 Pimlico Academy 51 40 Merchants’ Academy 15 13 London Academy 42 33 Oasis Academy Bristol 25 18 The Business Academy 32 30 Oasis Academy Brightstowe 26 20 Bexley John Cabot Academy 71 62 Harris Academy 30 28 Falconwood Unity City Academy 14 14 Capital City Academy 34 29 The King’s Academy 44 37 Harris Academy South 23 23 Macmillan Academy 74 65 Norwood Archbishop Sentamu 14 14 Harris City Academy 90 81 Academy Crystal Palace Oasis Academy Immingham 15 14 Oasis Academy—Coulsdon 49 42 Oasis Academy 21 21 West London Academy 33 28 Wintringham Greig City Academy 39 36 Havelock Academy 27 26 Stockley Academy 19 18 St Lawrence Academy 34 33 The Harefield Academy 38 35 Barnfield West Academy 29 29 Harris Academy Merton 58 47 Luton St Marks Church of 34 27 Barnfield South Academy 34 31 England Academy Luton Walthamstow Academy 33 27 Landau Forte College 66 52 331W Written Answers24 JUNE 2010 Written Answers 332W

GCSE results of pupils at the end of key stage 4 in academies in 2009 David Wright: To ask the Secretary of State for Percentage of Education (1) whether the Wrockwardine WoodSecondary Percentage of pupils achieving School in Telford is included in the review of the pupils 5+ A*-C Building Schools for the Future programme; [2506] achieving 5+ including English A*-C and Maths (2) whether the Phoenix Secondary School in Telford is included in the review of the Building Schools for the St Aidans Church of 40 37 [2507] England Academy Future programme; Oasis Academy Lord’s Hill 21 19 (3) whether the Lord Silkin Secondary School in Oasis Academy Mayfield 36 32 Telford is included in the review of the Building Swindon Academy 32 26 Schools for the Future programme; [2508] John Madejski Academy 6 6 (4) whether the Sutherland Secondary School in The Langley Academy 30 28 Telford is included in the review of the Building Thomas Deacon Academy 40 34 Schools for the Future programme; [2509] New Rickstones Academy 36 32 (5) when the review of the Building Schools for the Greensward Academy 49 45 Future programme will be concluded. [2510] Maltings Academy 41 35 The Gateway Academy 28 25 Mr Gibb: The Department is currently reviewing the Hereford Academy 29 23 Building Schools for the Future programme to ensure Steiner Academy Hereford 0 0 that we can build schools more effectively and more The Marlowe Academy 5 5 cost-efficiently in the future. Folkestone Academy 23 22 Marsh Academy 22 22 Children: Epilepsy The Leigh Technology 26 26 Academy Mrs Hodgson: To ask the Secretary of State for Spires Academy 21 21 Education what recent estimate his Department has New Line Learning 44made of the number of children with epilepsy in mainstream Academy schools. [2802] Cornwallis Academy 38 37 Longfield Academy 34 29 Sarah Teather: The information on the number of Accrington Academy 34 28 pupils with epilepsy is not collected by the Department. Darwen Aldridge 27 22 The information available on type of special educational Community Academy need is published in the Statistical First Release “Schools, Samworth Church Academy 26 21 Pupils and their characteristics, January 2010 (Provisional)” Djanogly City Academy 22 22 and can be found at: Nottingham http://www.dcsf.gov.uk/rsgateway/DB/SFR/s000925/ Madeley Academy 45 43 index.shtml Abraham Darby 33 30 Richard Rose Morton 26 24 Children: Protection Academy Richard Rose Central 30 25 Academy Ann Coffey: To ask the Secretary of State for Education West Lakes Academy 32 25 how many children were on the Child Protection Register Priory Witham Academy 29 26 in each local authority in England in each year since Priory City of Lincoln 26 23 2006. [3567] Academy Priory Academy LSST 96 96 Tim Loughton: The information requested is as follows: Trent Valley Academy 25 22 Table 9D: Children1 who were the subject of a Child Protection Plan— The Open Academy 28 27 Years ending 31 March 2006-09 Coverage: England Northampton Academy 37 35 Number Corby Business Academy 17 16 Local Brooke Weston Academy 90 80 authority 2006 2007 2008 2009 North Oxfordshire 20 19 England 26,400 27,900 29,200 34,100 Academy Oxford Academy 24 18 North East 1,615 1,785 1,980 2,265 Midhurst Rother College 51 42 Darlington 65 50 50 65 All Academy schools 37 33 Durham 180 225 215 290 Note : Gateshead 145 145 155 135 Only A*-C passes in full, short course and double award GCSEs are included. Hartlepool 75 90 55 80 Middlesbrough 140 125 210 260 Building Schools for the Future Programme Newcastle 230 350 320 315 upon Tyne North 95 115 105 125 Mr Kevan Jones: To ask the Secretary of State for Tyneside Education when he expects his review of the Building Northumberland 160 175 255 255 Schools for the Future programme to conclude; and if Redcar and 70 60 120 160 he will make a statement. [1166] Cleveland 333W Written Answers24 JUNE 2010 Written Answers 334W

Table 9D: Children1 who were the subject of a Child Protection Plan— Table 9D: Children1 who were the subject of a Child Protection Plan— Years ending 31 March 2006-09 Coverage: England Years ending 31 March 2006-09 Coverage: England Number Number Local Local authority 2006 2007 2008 2009 authority 2006 2007 2008 2009

South 85 110 135 110 Leicestershire 160 150 245 255 Tyneside Lincolnshire 365 345 260 205 Stockton-on- 105 130 160 210 Northamptonshire 185 185 155 225 Tees Nottingham 270 330 430 410 Sunderland 270 210 200 265 Nottinghamshire 450 485 420 445 Rutland 10 15 2—10 North West 3,375 3,565 3,980 5,235 Blackburn 70 65 45 135 West midlands 3,305 3,480 3,475 4,245 with Darwen Birmingham 1,055 1,255 1,020 1,375 Blackpool 145 110 165 155 Coventry 210 185 180 300 Bolton 130 145 190 250 Dudley 115 135 135 170 Bury 110 100 145 145 Herefordshire 65 55 70 105 Cheshire 175 155 175 260 Sandwell 175 120 190 210 Cumbria 120 160 225 270 Shropshire 160 160 135 175 Halton 85 80 65 75 Solihull 130 80 55 90 Knowsley 110 150 110 135 Staffordshire 385 340 385 440 Lancashire 515 565 510 660 Stoke-on- 115 150 240 185 Liverpool 225 320 355 500 Trent Manchester 270 300 515 540 Telford and 105 135 160 155 Wrekin Oldham 90 130 170 235 Walsall 120 165 175 195 Rochdale 70 105 75 140 Warwickshire 295 300 335 355 Salford 130 75 135 225 Wolverhampton 190 125 120 160 Sefton 145 195 235 310 Worcestershire 195 285 270 330 St Helens 150 105 90 120 Stockport 130 130 140 170 East of 2,600 2,620 2,745 3,025 Tameside 95 85 105 165 England Trafford 160 155 200 215 Bedfordshire 140 110 140 200 Warrington 100 95 100 95 Cambridgeshire 250 290 360 360 Wigan 90 95 110 215 Essex 500 625 545 645 Wirral 250 245 115 225 Hertfordshire 420 385 445 585 Luton 140 120 100 145 Yorks and the 2,830 2,730 2,835 3,240 Norfolk 410 320 295 310 Humber Peterborough 175 175 85 100 Barnsley 195 140 150 170 Southend-on- 100 120 165 155 Bradford 275 205 255 305 Sea Calderdale 90 115 135 160 Suffolk 405 410 465 390 Thurrock 60 70 150 130 Doncaster 250 235 325 310 East Riding 135 115 110 110 of Yorkshire London 4,745 4,955 5,210 5,795 Kingston 260 155 125 145 Inner London Upon Hull, Camden 215 195 195 270 City of City of 0 2— 2— 2— Kirklees 205 200 215 230 London Leeds 305 400 405 395 Hackney 165 185 220 220 North East 70 80 90 70 Hammersmith 75 140 150 175 Lincolnshire and Fulham North 85 80 90 85 Haringey 200 155 230 180 Lincolnshire Islington 135 110 110 140 North 315 240 130 230 Kensington 60 60 55 75 Yorkshire and Chelsea Rotherham 105 145 235 285 Lambeth 215 240 255 210 Sheffield 350 405 285 350 Lewisham 225 195 175 200 Wakefield 145 160 210 305 Newham 430 475 385 300 York 45 60 80 100 Southwark 240 230 260 315 Tower 125 190 235 270 East Midlands 2,275 2,525 2,410 2,525 Hamlets Derby 260 300 170 135 Wandsworth 125 135 175 180 Derbyshire 290 320 375 490 Westminster 110 115 85 145 Leicester 290 395 350 345 335W Written Answers24 JUNE 2010 Written Answers 336W

Table 9D: Children1 who were the subject of a Child Protection Plan— Education Maintenance Allowance Years ending 31 March 2006-09 Coverage: England Number Ian Austin: To ask the Secretary of State for Education Local authority 2006 2007 2008 2009 how many young people in (a) Dudley, (b) the West Midlands and (c) England applied for educational Outer London maintenance allowance in each of the last five years; Barking and 130 145 165 165 and if he will make a statement. [1500] Dagenham Barnet 115 130 155 150 Mr Gibb: This is a matter for the Young People’s Bexley 80 60 60 85 Learning Agency (YPLA) who operate the education Brent 130 125 170 175 maintenance allowance for the Department for Education. Bromley 155 140 140 165 Peter Lauener the YPLA’s chief executive, will write to Croydon 215 235 250 270 the hon. Member for Dudley North with the information Ealing 240 320 365 330 requested and a copy of his reply will be placed in Enfield 180 155 130 205 Hansard and the Library. Greenwich 165 175 190 275 Harrow 120 135 110 160 Education Maintenance Allowance: Warrington Havering 135 75 70 95 Hillingdon 85 125 150 175 Helen Jones: To ask the Secretary of State for Education Hounslow 160 180 140 185 how many students in Warrington North constituency Kingston 40 50 60 80 are in receipt of education maintenance allowance. upon Thames [3281] Merton 85 120 130 135 Redbridge 100 115 135 150 Mr Gibb: This is a matter for the Young People’s Richmond 50 50 35 35 Learning Agency (YPLA) who operate the education upon Thames maintenance allowance for the Department for Education. Sutton 65 85 105 150 Peter Lauener the YPLA’s chief executive, will write to Waltham 175 105 95 135 the hon. Member and a copy of his reply will be placed Forest in the Libraries. 1 Includes unborn children. 2 A small number which has been suppressed to preserve Education Maintenance Allowance: Wigan confidentiality Source: CPR3 Lisa Nandy: To ask the Secretary of State for Education how many young people resident in Wigan constituency Children’s Centres: Doncaster receive education maintenance allowance. [1735]

Caroline Flint: To ask the Secretary of State for Mr Gibb: This is a matter for the Young People’s Education how many children’s centres there were in Learning Agency (YPLA) who operate the education (a) Don Valley and (b) the Doncaster borough maintenance allowance for the Department for Education. council area in each year since (i) 1997 and (ii) at the Peter Lauener the YPLA’s chief executive, will write to latest date for which figures are available. [2746] the hon. with the information requested and a copy of his reply will be placed in Hansard and the Libraries. Sarah Teather: The following table gives details of how many designated (open) Sure Start Children’s Centres Free School Meals there were in (a) Don Valley constituency and (b) the Doncaster borough council area in each year since Mr Anderson: To ask the Secretary of State for 2003. There were no children’s centres designated prior Education when he expects to announce the results of to 2003; the latest data on the total number of children’s the universal free school meals pilot schemes; and if he centres designated in Doncaster was available at 30 will make a statement. [1531] April 2010—shown as the 2010 figures in the table. Mr Gibb: The pilots in Newham, Durham and Total children’s centres in Wolverhampton, started in the autumn term 2009 and Total children’s centres in Doncaster borough Don Valley constituency council will run until July 2011. We have commissioned NatCen (National Centre for Social Research) to undertake the 2003 1 1 evaluation of the pilots. We will closely evaluate them 2004 1 1 for evidence on how each option affects take up of 2005 3 9 school lunches; impacts on children’s outcomes including 2006 4 14 diet at school and at home, health, behaviour and 2007 4 14 attainment; and value for money. We expect the full 2008 7 22 evaluation results to be available early in 2012. Some 2009 16 121 results, such as the effect on school lunch take-up, will 2010 6 21 be available earlier. 1 In 2009 Conisbrough children’s centre merged with Denaby Main As the Secretary of State made clear in his letter of children’s centre, becoming a satellite to Denaby Main children’s 7 June to the right hon. Member for Morley and Outwood centre rather than a centre in its own right. This resulted in a (Ed Balls) which has been placed in the Library, the reduction to the overall total of children’s centres in Doncaster. Government will not be funding the additional free 337W Written Answers24 JUNE 2010 Written Answers 338W school meals pilots in Islington, Bradford, Nottingham, (2) what assessment was made of the implications for Cumbria and Medway that were due to start in September child protection of allowing head teachers to use 2010. no-notice detentions. [2439]

Free Schools Mr Gibb: The Government trust head teachers to make reasonable arrangements for detentions, taking Ed Balls: To ask the Secretary of State for Education into account any implications for child protection and what funding he plans to allocate to the implementation for young carers. of free school polices in (a) 2010-11, (b) 2011-12 and (c) 2013-14. [1216] Schools: Finance Mr Gibb: Full plans for all education funding depend on the spending review which has yet to be undertaken. Mr Iain Wright: To ask the Secretary of State for Those plans will include provision for the funding of Education if he will estimate the cost to the public purse free schools. Details will be published as part of the of paying to each eligible (a) primary and (b) secondary spending settlement latter this year. school under his proposals the payment presently awarded to each school which achieves academy school status. GCSE: West Midlands [1398] Mr Jim Cunningham: To ask the Secretary of State Mr Gibb: Outstanding schools making a successful for Education how many pupils obtained five A* to C application for conversion to academy status will be grades at GCSE in (a) the West Midlands and (b) entitled to a grant of around £25,000 as a contribution Coventry in each year since 1997. [3853] to implementation and development costs. The total Mr Gibb [holding answer 23 June 2010]: The information cost will depend on the number of successful applications. required is shown in the following table. Schools: Standards Number of pupils obtained five A* to C grades at GCSE in the West Midlands and Coventry West Midlands Coventry Meg Munn: To ask the Secretary of State for Education Number Percentage Number Percentage if he will ensure that any reduction in the level of regulation affecting schools does not put children at 1997 24,733 40.2 1,262 36.9 risk. [2438] 1998 25,138 41.3 1,286 37.1 1999 26,972 43.5 1,318 39.1 2000 27,441 44.8 1,412 40.8 Mr Gibb: I can confirm that the Government’s programme of providing greater freedom for schools 2001 29,262 45.8 1,523 42.6 will not put pupils at risk. Academies already benefit 2002 30,742 48.1 1,561 43.2 from greater freedoms to help them innovate and raise 2003 32,797 50.2 1,668 45.8 standards. These include freedom from local authority 2004 33,967 50.9 1,666 45.5 control; the ability to set their own pay and conditions 2005 36,001 54.3 1,720 46.4 for staff; freedom from following the national curriculum; 2006 38,232 56.4 1,796 47.9 and the ability to change the length of terms and school 2007 40,734 59.3 1,998 52.6 days. Staff in all schools, including academies, have a 2008 43,263 64.1 2,210 60.7 general duty of care for those in their charge. 2009 45,455 70.1 2,474 70.0 Notes: Specialised Diplomas 1. Data for the period 1997 to 2004 relates to 15-year-olds. 2. Data for the period 2005 to 2009 relates to pupils at the end of Key Stage 4. Lisa Nandy: To ask the Secretary of State for Education Source: Achievement and Attainment Tables. how many young people in (a) Wigan constituency, (b) the North West and (c) England have enrolled on a National Curriculum Tests 14 to 19 diploma course in each subject in each year since their introduction. [1739] David Mowat: To ask the Secretary of State for Education when the timetable for Key Stage 2 standard Mr Gibb: The 14 to 19 Diploma was introduced in assessment tests for academic year 2010-11 will be the academic year 2008/09. Information on the number published; and on what dates he expects those tests to of students participating in Diploma learning in 2008/09 take place. [2614] was published via the DFE website on 11 November 2009 at: Mr Gibb: We are currently considering the arrangements for the Key Stage 2 tests in 2011 and will confirm the http://www.dcsf.gov.uk/rsgateway/DB/STA/t000888/ details shortly. index.shtml Final figures for 2009/10 are likely to be available from Schools: Discipline the end of November 2010; however, indicative figures were released on the DFE website on 18 December 2009 Meg Munn: To ask the Secretary of State for at: Education (1) what assessment he has made of the http://www.dcsf.gov.uk/14-19/ implications for young carers of a policy in schools of index.cfm?go=site.home&sid=57&pid=500&lid= no-notice detentions; [2436] 593&l4id=287&ptype=Single&ctype=Text 339W Written Answers24 JUNE 2010 Written Answers 340W

The number of students who participated in a course 31 August 2009 by subject, as identified by the number of study towards a Diploma for all or part of the of Diploma students registered on the QCDA Diploma academic year 2008/09 in (a) the Wigan constituency, Aggregation Service (DAS) data is: (b) the North West and (c) England up to and including

Construction and the Built Information Society, Health and 2008/09 Environment Creative and Media Engineering Technology Development Total

Wigan Nil North West 225 524 423 177 303 1,652 England 1,529 3,522 2,629 1,920 1,726 11,326 Source: Full year 2008/09 DAS participation data matched to the DFE National Pupil Database

The number of students who were on a course of (c) England by subject, as indicated by funding returns study towards a Diploma as of September 2009 in from local authorities is: (a) the Wigan constituency, (b) the North West and

Construction and the Built Society, Health and September 2009 Environment Creative and Media Engineering Information Technology Development

Wigan 0 39 0 26 0 North West 432 1373 1030 547 957 England 3,291 9,850 6,343 5,189 5,196

Business Administration and Environment and Land Manufacturing and September 2009 Finance Based Studies Hair and Beauty Studies Hospitality Product Design

Wigan 0 9 8 11 0 North West 312 114 279 104 12 England 2,440 643 2,562 783 144 Source: Local authority funding returns for the Diploma Formula Grant submitted to the DFE in November 2009

UN Convention on the Rights of Persons with into force in April 2011. Statutory guidance was published Disabilities in March 2010 and can be found at http://www.dcsf.gov.uk/everychildmatters/ safeguardingandsocialcare/childrenincare/careplanning/ Mr Mike Hancock: To ask the Secretary of State for careplanning/ Education what steps his Department plans to take to implement its responsibilities in the UN Convention on Youth Opportunities and Youth Capital Funds the Rights of Persons with Disabilities; if he will withdraw the reservation and declaration made by his Andrea Leadsom: To ask the Secretary of State for Department to the Convention; and what steps his Education what his plans are for the future of the (a) Department is taking to reduce the number of disabled Youth Opportunity Fund and (b) Youth Capital children educated a long distance away from their Fund. [1976] homes. [1602] Tim Loughton: The Department for Education has Sarah Teather [holding answer 15 June 2010]: The not yet made a decision on the future of the Youth UK Government have ratified the convention and we Opportunity Fund or Youth Capital Fund. The will meet our commitments under it. The previous Government are committed to a full comprehensive Government took a reservation and interpretive declaration spending review in the autumn and Ministers will shortly to article 24, on education, and we currently have no be considering their spending priorities, which will take plans to change this. into account all areas of spending including that for youth activities and facilities. Section 9 of the Children and Young Persons Act 2008 inserted section 22G into the Children Act 1989 to require local authorities to take steps that secure, so far as reasonably practicable, sufficient accommodation, FOREIGN AND COMMONWEALTH OFFICE within the authority’s area, which meets the needs of children that the local authority are looking after, and Aung San Suu Kyi whose circumstances are such that it would be consistent with their welfare for them to be provided with Mr MacShane: To ask the Secretary of State for accommodation that is in the authority’s area. This will Foreign and Commonwealth Affairs what steps he has require local authorities to plan strategically to meet the taken to seek to secure the release of Aung San Suu Kyi needs of those children. The duty is planned to come since his appointment. [3870] 341W Written Answers24 JUNE 2010 Written Answers 342W

Mr Jeremy Browne: I raised Burma with ASEAN Colombia: Political Prisoners Ministers at the EU-ASEAN Ministerial on 26 May 2010 at which the Burmese Foreign Minister was present. Alun Michael: To ask the Secretary of State for I made clear that without the release and participation Foreign and Commonwealth Affairs whether British of all political prisoners including Aung San Suu Kyi, diplomats in Bogota have visited political prisoners in Burma’s elections will not be free and fair. The subsequent Colombian jails. [3432] summit statement reflected the EU’s concern. To mark Aung San Suu Kyi’s 65th birthday, my right Mr Jeremy Browne: We have pointed out to the hon. Friends the Prime Minister, the Foreign Secretary Colombian authorities that those charged with crimes and I called on the military regime to end her detention. should have their legal rights fully respected, including Our ambassador in Rangoon repeatedly raises the need to a fair trial. We have also raised specific cases of for the release of prisoners of conscience, including concern of people who have been detained for long Aung San Suu Kyi, with ministers in the Burmese periods without trial on the charge of rebellion. military government. Departmental Official Cars We will continue to raise the plight of Burma’s political prisoners including Aung San Suu Kyi through the EU, with Burma’s neighbours, and we will highlight the Chris Bryant: To ask the Secretary of State for Foreign issue in the UN Security Council and UN’s human and Commonwealth Affairs pursuant to the answer of rights bodies. We endorse the UN Working Group on 15 June 2010, Official Report, columns 353-4, on Arbitrary Detention’s recent observation that the ongoing departmental official cars, what cars and vehicles have detention of Aung San Suu Kyi is illegal and in violation been purchased by the Mission in Italy since 12 May of international human rights law. 2010. [3490] Mr Bellingham: No cars or vehicles have been purchased Burma: Elections by the Mission in Italy since 12 May 2010. Iran: Human Rights Mr MacShane: To ask the Secretary of State for Foreign and Commonwealth Affairs what steps he plans to take to seek to increase the level of access for Ms Ritchie: To ask the Secretary of State for Foreign people in Burma to free media and information and Commonwealth Affairs what discussions his networks before the forthcoming election in that Department has had with the Government of Iran on country. [3896] its record on the protection of human rights in the country. [3548]

Mr Jeremy Browne: The forthcoming elections are set Mr Bellingham: We believe that the human rights to be held under deeply oppressive conditions. The situation in Iran is deplorable, and the Foreign and Burmese regime limits public access to media information. Commonwealth Office continues to take opportunities Election literature is censored and public gatherings, to raise human rights with the Government of Iran in political banners and flags are banned. Most people are both a bilateral context, and with EU partners. In unable to access the media to voice political views and Geneva this month, the Human Rights Council adopted those who do so risk draconian measures imposed by Iran’s Universal Periodic Review, at which the UK the military junta including long prison sentences. Under made a series of statements about our concerns and these conditions, Burma’s people will not have reasonable made recommendations to Iran to improve the human access to free and impartial media. rights situation. The UK also signed up to a cross-regional The Foreign and Commonwealth Office (FCO) provides statement by Norway and signed by 55 other states funding to the BBC World Service to enable it to run a calling on Iran to improve urgently its human rights Burmese service, which provides objective coverage of record. politics in Burma. BBC World Service reports that it reaches 8.5 million listeners every week inside Burma. Iraq: Christianity Although internet use is limited in Burma, the FCO’s digital communications work also plays its part in the Mr Evennett: To ask the Secretary of State for flow of information to the country. As elections approach Foreign and Commonwealth Affairs what recent in Burma, the FCO will continue to work closely with representations he has received from representatives of the BBC World Service and others to increase access to the Assyrian community in the UK on the current political information. situation in Iraq. [3309]

Colombia and Peru: EU External Trade Mr Bellingham: Foreign and Commonwealth officials in Iraq and London regularly meet representatives of the wider Iraqi Christian community to hear their concerns. Chris Bryant: To ask the Secretary of State for On 21 June 2010 our embassy officials in Baghdad met Foreign and Commonwealth Affairs if he will make it the co-founder of the Assyrian Democratic Movement his policy that the EU free trade agreement with in the Kurdish region of Iraq. Colombia and Peru be subject to ratification in each We urge the Iraqi Government to protect all Iraqi member state. [3491] communities, including Christians, and to deal appropriately with those who are found responsible for any acts of Mr Jeremy Browne: We will determine our policy violence and intimidation because of political, ethnic or when we have seen the English text of the final agreement. religious affiliation. 343W Written Answers24 JUNE 2010 Written Answers 344W

Overseas Students: Scholarships ENERGY AND CLIMATE CHANGE

Mrs Hodgson: To ask the Secretary of State for Biofuels Foreign and Commonwealth Affairs how many people were awarded British Embassy bursaries to study in the Charlotte Leslie: To ask the Secretary of State for UK in each of the last 20 years. [2264] Energy and Climate Change if he will undertake a review of the eligibility of biofuels sourced from palm Mr Jeremy Browne: The Foreign and Commonwealth oil and jatropha oil for renewables obligation Office (FCO) has provided funds for four award schemes: certificates to ensure that those biofuels do not receive Chevening scholarships, Chevening fellowships, Marshall subsidies under that certification scheme. [3711] scholarships (through the Marshall Aid Commemoration Commission) and Commonwealth scholarships (through the Commonwealth Scholarship Commission in the Charles Hendry: A review of support levels for renewable UK under the Commonwealth Scholarship and Fellowship electricity generation under the Renewables Obligation Plan). Since 2008-09 the FCO is not funding any new is scheduled to start in October 2010, and will include Commonwealth awards (but it is paying the continuing electricity and CHP generation from bioliquids (i.e. costs of existing scholars). The number of new awards biofuels for electricity). I expect to consult publicly on given on each scheme in each of the last 20 years is set any changes resulting following this review. out in the following table. The Government are committed to the sustainability of bio-energy feedstocks. I expect to publish next month Chevening Chevening Marshall Commonwealth proposed sustainability criteria for bioliquids, based on scholarships fellowships scholarships scholarships the standards set in the Renewable Energy Directive, to be implemented in the Renewables Obligation. 1990-91 1,489 n/a 30 70 1991-92 1,097 n/a 40 74 1992-93 1,145 n/a 39 91 Carbon Emissions 1993-94 1,362 n/a 36 39 1994-95 1,486 n/a 40 59 Liz Kendall: To ask the Secretary of State for Energy 1995-96 1,894 n/a 40 96 and Climate Change (1) what estimate his Department 1996-97 1,918 n/a 40 22 has made of the reduction in carbon dioxide emissions 1997-98 1,906 n/a 40 79 in the UK resulting from the introduction of a carbon 1998-99 1,607 n/a 39 74 floor price; [3579] 1999- 2,022 n/a 40 35 (2) what steps his Department has taken to assess the 2000 effects on electricity bills of the introduction of a 2000-01 2,285 n/a 38 20 carbon floor price; [3583] 2001-02 2,284 n/a 40 79 (3) what assessment his Department has made of the 2002-03 2,387 n/a 40 72 energy (a) sectors and (b) companies which will 2003-04 2,401 n/a 40 59 benefit from the introduction of a carbon floor price. 2004-05 2,124 87 44 62 [3607] 2005-06 1,677 208 43 51 2006-07 1,609 229 43 56 Gregory Barker: The creation of a floor for the 2007-08 1,350 225 44 46 carbon price is an important commitment in the Programme 2008-09 978 213 37 53 of Government. As announced in the Budget, the 2009-10 910 173 40 0 Government will publish proposals in the autumn to reform the climate change levy in order to provide more certainty and support to the carbon price. Further detail will be published as part of the consultation process. DEPUTY PRIME MINISTER Departmental Official Cars General Elections: Alternative Vote Mr Watson: To ask the Secretary of State for Energy Miss McIntosh: To ask the Deputy Prime Minister and Climate Change how many (a) civil servants and what recent representations he has received on his (b) special advisers in his Department are entitled to proposal to hold a referendum on the alternative voting the use of (i) a car with a dedicated driver, (ii) a car from the Government car pool and (iii) a taxi ordered system for general elections. [4156] through a departmental account. [3206] Mr Harper: Representations have been received from those with an interest in the electoral system for general Gregory Barker: There are no civil servants or special elections, including Members of Parliament and the advisers who are entitled to the use of a car with a public. The Government have set out their intention to dedicated driver nor a car from the Government car introduce legislation providing for a national referendum pool. on the alternative vote for future elections to the House Where groups have such accounts, staff are able to of Commons, and will announce further details in due order a taxi through a departmental account in accordance course. with departmental guidelines. 345W Written Answers24 JUNE 2010 Written Answers 346W

Departmental Translation Services Electric Cables: Countryside

Ian Austin: To ask the Secretary of State for Energy Andrew Percy: To ask the Secretary of State for and Climate Change what (a) documents and (b) Energy and Climate Change if he will bring forward other information for which (i) his Department and (ii) proposals to reduce the visual effect of electricity its associated public bodies are responsible are pylons on the open countryside. [3921] published or provided in the UK in languages other than English; for what reason each such publication is Gregory Barker: For new electricity network lines, it required to be made available in a language or is for the regulatory price control and planning processes languages other than English; and what estimate he has to determine the appropriate balance between need, made of the cost to the public purse of the translation cost and visual impact of electricity transmission towers work so incurred in the latest period for which figures (pylons) in each location. are available. [1779] Fuel Poverty Gregory Barker: The annual Global Threat Reduction Report is translated into Russian each year, at a cost Karl Turner: To ask the Secretary of State for Energy last year of £4,972. The report outlines the progress and Climate Change what steps he plans to take to being made to address the nuclear, biological and chemical reduce fuel poverty; and how much funding will be legacies in the countries of the Former Soviet Union provided for WarmSure from 2011 onwards. [3733] (FSU). The following documents were translated into Welsh Gregory Barker: Funding for the Warm Front scheme for DECC in 2009-10, in accordance with the Welsh is just over £1.1 billion for the current three-year spending Language Act (1993): period to March 2011. This includes a cash provision of £345 million for 2010-11. Funding for future years will £ be considered as part of the spending review processes. The Green Deal is a key element of our policy to Nuclear Consultations Annexes: Volumes 2 and 3 7,817.12 improve household energy efficiency. We want the Green Non-Technical Summaries for AoS Reports on EN-1 to 6,898.87 EN-5 Deal to be relevant to all households. To this end we will Nuclear Consultations Annexes: Volumes 2 and 3 5,182.88 ensure that as policy around the Green Deal develops, EN-1 Draft Overarching National Policy Statement for 4,820.00 the needs of those in fuel poverty continue to be recognised. Energy Renewables Consultation 4,500.00 Nuclear Power Stations: Construction EN-3 Draft National Policy Statement for Renewable 3,103.87 Energy Generation Graham Evans: To ask the Secretary of State for Household Energy Management 2,380.38 Energy and Climate Change what criteria have been set Gas Supply Infrastructure 1,168.00 for companies investing in new build nuclear power Habitats Regulation Assessment for EN-1 to EN-5 1,052.87 plants. [4265] Consultation on Financing of Nuclear Decommissioning; 990.00 Consultation on Fixed Unit Price for Waste Disposal Charles Hendry: Government’s position on new nuclear EN-2 Draft National Policy Statement for Fossil Fuel 915.37 Electricity Generating Infrastructure power is clear. It is for the private sector energy companies Electricity Networks 880.37 to construct, operate and decommission new nuclear Executive Summary; Fixed Unit Price 842.12 power plants, as long as they are subject to the normal planning process for major projects and that they receive Nuclear Consultation 730.50 no public subsidy. Operator’s plans will also have to Executive Summary re regulation of gas and electricity 420.88 networks satisfy the independent safety regulators. The Government Miners Newsletter 290.87 will complete the drafting of the Nuclear National Policy Statement and put it before Parliament which if Extending Carbon Emissions Reduction Target 217.50 approved will clear the way for planning applications Slides for NPS Presentation 150.00 for new nuclear. Notices re Maximum Purchase Limit for Fuel 94.00 EN-5 Changes to English 60.00 Amendments to EN-4 60.00 Nuclear Power: Finance

The Health and Safety Executive paid £2,357.50 on Zac Goldsmith: To ask the Secretary of State for DECC’s behalf for the translation of the following Energy and Climate Change how much has been spent document into Welsh, in 2009-10: on the (a) National Nuclear Laboratory, (b) National Nuclear Academy, (c) Nuclear Institute and (d) Office Consultation on Restructuring of the Health and Safety Executive’s Nuclear Directorate. for Civil Nuclear Security in the last 10 years. [2346] The following documents were translated into Welsh Charles Hendry: The information is as follows: for Ofgem in 2009-10, in accordance with the Welsh Language Act (1993), at a total cost of £1,449: Spend on: Executive Summary of the Government Response to the (a) The National Nuclear Laboratory Consultation on the Revised Social and Environmental Guidance The NNL operates on a commercial basis, managed through a to Ofgem; The Revised Social and Environmental Guidance to GOCO (Government-owned, contractor-operated) arrangement Ofgem; Call for Evidence on the EU Third Package. and does not receive funding from the public purse. 347W Written Answers24 JUNE 2010 Written Answers 348W

(b) The Nuclear Academy The findings of any HSE offshore inspection are No funding is currently allocated directly from the public discussed with the offshore work force safety representatives purse. However, in 2007-08 the NDA provided £5 million to at the conclusion of the visit, and they subsequently support the establishment of Energus (formerly referred to as the receive copies of any inspection letter. Nuclear Academy) as a centre of excellence for skills, training and DECC have confirmed that they completed business support. environmental inspections of Transocean’s Galaxy 4 (c) The Nuclear Institute and Arctic 4 Rigs during October 2009; the Sedco 711 The Nuclear Institute receives no public income. The NI Rig during March 2010 and the Paul Boyd Lloyd Junior income is from individual membership, surplus from events and during May 2010. DECC’s Offshore Inspectorate also sales of journals and journal advertising and some occasional plan to visit the above HSE listed Transocean rigs as donations. part of their series of prioritised environmental inspections (d) Office for Civil Nuclear Security to fixed installations and drilling rigs, subject to a risk The following payments have been made to the Office for Civil based approach which takes into account operations Nuclear Security (OCNS) in recognition of work carried out on being conducted. During 2008 DECC’s Offshore behalf of Government which could not be charged to the civil Inspectorate completed an inspection campaign focused nuclear industry: on industry drilling operations, the results of which are published on the DECC website. The inspections ensure April to March each year £ that permit holders/operators have been, or are complying 2009- 10 280,000 with the requirements, restrictions or prohibitions imposed 2008- 09 196,000 upon them by the relevant statutory provisions. 2007- 08 174,000 Following a DECC environmental offshore inspection Prior to that date, OCNS was part of DTI (as was) and its an inspection letter raising any issues will be sent to the budget was subsumed within the DTI budget. permit holder/operator. These are currently publically available upon request. Renewable Energy

Jeremy Lefroy: To ask the Secretary of State for Energy and Climate Change whether he plans to bring INTERNATIONAL DEVELOPMENT forward proposals for a renewable heat incentive. [4392] Afghanistan: Overseas Aid Charles Hendry: I refer my hon. Friend to the answer I gave my hon. Friend the Member for Sevenoaks (Michael Fallon) on 15 June 2010, Official Report, Ann McKechin: To ask the Secretary of State for columns 367-68W. International Development pursuant to the Prime Minister’s Oral Statement of 4 June 2010, Official Transocean Report, columns 603-6, on Afghanistan, over what period the £200 million for training and strengthening Mr Thomas: To ask the Secretary of State for Energy the police forces and Government institutions is to be and Climate Change when the next safety and spent; from what budget the funding is drawn; and how environmental inspection of the 10 Transocean rigs much will be spent on each priority for the expenditure. operating in UK waters will be completed; and whether [3705] the inspection reports will be published. [3166] Mr Andrew Mitchell: The Department for International Charles Hendry [holding answer 21 June 2010]: If Development (DFID) will allocate the additional £200 Transocean rigs are operating in UK waters they will be million from its own budget to support the Afghan subject to safety inspections by the Health and Safety Government over the next four years (2010-11—2013-14). Executive (HSE) and environmental inspection by the DFID is currently reviewing its programme for Department of Energy and Climate Change (DECC) Afghanistan. The Kabul Conference, scheduled for July, Offshore Environmental Inspectorate. will be a key point for the Afghan Government to set HSE have informed DECC that their health and out its development priorities and for the international safety intervention plan for Transocean proposes at community to set out their plans to support these. least one annual visit to every Transocean drilling rig We will make specific decisions on spending and working in UK waters. The planned health and safety focus areas in time for this event. inspections for 2010-11, subject to schedules and rig moves etc., are: Mr Douglas Alexander: To ask the Secretary of State April: Galaxy II (well test)—inspection completed for International Development (1) what proportion of May: Arctic III (Rotterdam shipyard)—inspection completed the additional £200 million of aid for Afghanistan June: Galaxy II and Sedco 714—inspections completed announced on 10 June 2010 will be distributed through the United Nations Development Programme; [3730] August: Arctic III and Prospect September: John Shaw (2) what proportion of the additional £200 million of aid for Afghanistan announced on 10 June 2010 will be October: Paul B Lloyd Jnr allocated to (a) policing, (b) improving training, livelihoods November: Sedco 704 and education, (c) Afghan-led stabilisation, including January: J W McLean justice and dispute resolution at a sub-national level, February: Sedco 711 (d) improving governance and revenue generation and March: Galaxy III (e) supporting Civil Service reform; [3731] 349W Written Answers24 JUNE 2010 Written Answers 350W

(3) what proportion of the additional £200 million of (2) when he expects his Department’s proposed aid aid for Afghanistan announced on 10 June 2010 will be watchdog to be fully operational. [3726] distributed (a) through the government of Afghanistan, (b) through civil society organisations, (c) through Mr Andrew Mitchell: We have taken the first steps multilateral organisations and (d) directly by the towards creating a new independent aid watchdog. Details Government; [3732] are currently being worked out, and I will keep the (4) whether the £200 million allocation of aid for House informed of progress. Afghanistan he announced on 10 June 2010 meets the definition of overseas development assistance used by South Africa: HIV Infection the Organisation for Economic Co-operation and Development’s Development Assistance Committee. Ms Ritchie: To ask the Secretary of State for [3778] International Development what steps his Department is taking to tackle the HIV epidemic in South Africa. Mr Andrew Mitchell: The Department for International [3545] Development (DFID) is currently reviewing its programme for Afghanistan. The Kabul Conference, scheduled for Mr Andrew Mitchell: The Department for International July, will be a key point for the Afghan Government to Development (DFID) is working with a range of South set out its development priorities and for the international African organisations, including the Government of community to set out their plans to support these. South Africa’s Ministry of Health, to meet the following We will make specific decisions on spending and targets set out in the National Strategic Plan for HIV focus areas in time for this event. and AIDS: All aid spending will continue to meet the Organisation Reduce new HIV infections by 50%; for Economic Co-operation and Development (OECD) Reduce mother to child transmission to 5%; and definition for official development assistance (ODA). Expand coverage of treatment, care and support to 80%. In The Coalition: our programme for government, Departmental mobile phones the Government highlighted it’s commitment to restricting the spread of HIV and AIDS. In the coming months Mr Khalid Mahmood: To ask the Secretary of State DFID will be reviewing its aid programme to determine for International Development pursuant to the answer how we can achieve better value for money for the to the hon. Member for West Bromwich East of 14 June taxpayer and accelerate progress towards the Millennium 2010, Official Report, column 310W, on departmental Development Goals, including the targets for HIV and mobile telephones, what the (a) purchase cost of the AIDS. handset, (b) network provider, (c) type of tariff and (d) name of the supplier was in respect of the BlackBerry St Helena device issued to (i) the Minister of State and (ii) the Parliamentary Under-Secretary of State. [4063] Bob Russell: To ask the Secretary of State for International Development how much financial aid has Mr Andrew Mitchell: The cost of the Blackberry been allocated to St Helena in 2010-11. [3802] handsets issued to the Minister of State and the Parliamentary Under-Secretary of State were £235 each. Mr Andrew Mitchell: I refer the hon. Member to my The network provider and supplier is Vodafone. The answer of 17 June 2010, Official Report, column 55W, tariff is ’teamwork and blackberry’. on British Overseas Territories: Overseas Aid.

Developing Countries: Climate Change Bob Russell: To ask the Secretary of State for International Development how much financial aid he plans to provide to St Helena in each of the five Mr Douglas Alexander: To ask the Secretary of State financial years from April 2011; and if he will make a for International Development whether funding for the statement. [3803] Government’s contribution to the Fast Start programme announced on 31 May 2010 is to be drawn Mr Andrew Mitchell: In the coming months the from existing aid allocations. [3727] Department for International Development (DFID) Mr Andrew Mitchell: The UK’s contribution to Fast will be reviewing its aid programme to determine how Start finance will be drawn from the UK’s aid budget. we can achieve better value for money for the taxpayer This is a continuation of the previous Government’s and fulfil our obligation to the citizens of UK overseas position, announced in the answer provided on 22 February territories. Allocation of funding to UK overseas territories 2010, Official Report, column 242W by the hon. Member will be determined as part of the review. for Harrow West (Mr Thomas), on Overseas Aid: Climate Change. Bob Russell: To ask the Secretary of State for International Development how much financial aid has been given to St Helena in each year since 2008. [3857] Overseas Aid Mr Andrew Mitchell: Details of aid provided to St Mr Douglas Alexander: To ask the Secretary of State Helena by the Department for International Development for International Development (1) what estimate he has (DFID) are published annually in ‘Statistics on International made of the cost of establishing his Department’s Development’, which is available in the Library and on proposed aid watchdog; [3725] the DFID website at: 351W Written Answers24 JUNE 2010 Written Answers 352W

http://www.dfid.gov.uk/About-DFID/Finance-and- recovery between the North and the South of Sudan. performance/Aid-Statistics/Statistics-on-International- The tri-departmental Stabilisation Unit has an Adviser Development-2009/ based in the HMG team in Southern Sudan. The UK DFID provided £17,550,000 and £35,738,000 to also contributes to a number of funds operating in St Helena and dependencies (including Tristan da Cunha) Southern Sudan with a stabilisation focus, including the in 2007-08 and 2008-09 respectively. Figures for 2009-10 UK-Netherlands Southern Sudan Recovery Fund which will be published later this year. is piloting support to state-level stabilisation plans. St Helena: Airports We are currently reviewing all our aid, including aid channelled through multilateral agencies to ensure it is as effective as possible and brings real benefit to the Bob Russell: To ask the Secretary of State for world’s poor and conflict-affected populations. International Development when he expects to make an announcement in respect of the start date for building an airport on St Helena; and if he will make a statement. Mr Tom Clarke: To ask the Secretary of State for International Development what assessment he has [3801] made of the effectiveness of mechanisms to account for expenditure from the funds administered by the UN in Mr Andrew Mitchell: We are currently considering Sudan. [3469] the question of access to St Helena. I will inform the House of any decision that is made. Mr Andrew Mitchell: Mechanisms in place include Sudan: Overseas Aid narrative and financial reports as well as audited statements in line with UN procedures. Department for International Mr Tom Clarke: To ask the Secretary of State for Development (DFID) staff also conduct regular monitoring International Development if he will put in place of progress and formal annual reviews in line with our measures to ensure continuous and regular funding for own project management procedures. recovery and stabilisation in southern Sudan. [3468] We are currently reviewing all our aid, including aid channelled through multilateral agencies to ensure it is Mr Andrew Mitchell: The UK remains committed to as effective as possible and brings real benefit in terms implementation of the Comprehensive Peace Agreement of building peace and delivering assistance to those in Sudan which is the best foundation for stability and affected by conflict.

1MC Ministerial Corrections24 JUNE 2010 Ministerial Corrections 2MC

sometimes be cases where the publication of the name Ministerial Correction of the accused person gives rise to other people coming forward with well-founded complaints against that Thursday 24 June 2010 person. We will have to see whether there is any evidence that such cases are a significant proportion of the total cases of rape. We shall also have to consider the arguments on the other side, where a woman JUSTICE can make an anonymous complaint, the man can eventually be convicted, after going through a long Topical Questions and probably rather destructive ordeal, and the woman retains her anonymity as she walks away, with T9. [2248] Barbara Keeley (Worsley and Eccles South) her ex-boyfriend or ex-husband left to live with the (Lab): In a recent case, a Salford man had committed a consequences. rape and was bailed, but then committed a further The correct answer should have been: rape, and the police believe that there are further victims of this man. Can the Secretary of State explain Mr Kenneth Clarke: With great respect, I find it very why the Government have committed in their coalition surprising that so many questions are being raised agreement to extending anonymity to such defendants about a proposition that has been before the House, on before all the evidence is heard? Can he also say who and off, for the past 20 years and is not easily resolved. will now be consulted for that evidence? We will, of course, look at all arguments, including the [Official Report, 15 June 2010, Vol. 511, c. 735-36.] experience of the case to which the hon. Lady has referred, but that is only one of the considerations Letter of correction from Mr Kenneth Clarke: to be taken into account. There will undoubtedly An error has been identified in the oral answer given sometimes be cases where the publication of the name to the hon. Member for Worsley and Eccles South of the accused person gives rise to other people coming (Barbara Keeley) on 15 June 2010. The answer given forward with well-founded complaints against that was as follows: person. We will have to see whether there is any evidence that such cases are a significant proportion of Mr Kenneth Clarke: With great respect, I find it very the total cases of rape. We shall also have to consider surprising that so many questions are being raised the arguments on the other side, where a woman about a proposition that has been before the House, on can make an anonymous complaint, the man can and off, for the past 20 years and is not easily resolved. eventually be acquitted, after going through a long We will, of course, look at all arguments, including the and probably rather destructive ordeal, and the experience of the case to which the hon. Lady has woman retains her anonymity as she walks away, with referred, but that is only one of the considerations her ex-boyfriend or ex-husband left to live with the to be taken into account. There will undoubtedly consequences.

ORAL ANSWERS

Thursday 24 June 2010

Col. No. Col. No. ENVIRONMENT, FOOD AND RURAL ENVIRONMENT, FOOD AND RURAL AFFAIRS— AFFAIRS...... 410 continued Animal Health Agency ...... 417 Farming Regulation ...... 423 Biodiversity...... 423 Fishing Restrictions (Suffolk Coastal)...... 422 British Waterways ...... 424 Flood Defence (Chesterfield) ...... 413 Broadband (Rural Areas)...... 410 Flood Defences...... 419 Campaign for the Farmed Environment ...... 414 Pulmonary Disease ...... 415 Common Agricultural Policy ...... 416 Rural Payments Agency ...... 418 Common Fisheries Policy ...... 419 Topical Questions ...... 424 Environment Agency ...... 421 Workplace Activity (Natural Environment) ...... 415 Farming Regulation ...... 411 WRITTEN MINISTERIAL STATEMENTS

Thursday 24 June 2010

Col. No. Col. No. BUSINESS, INNOVATION AND SKILLS ...... 19WS HOME DEPARTMENT...... 20WS Postal Services...... 19WS Identity and Passport Service...... 20WS Pre-charge Detention ...... 20WS

DEFENCE...... 19WS WORK AND PENSIONS ...... 21WS Police and Guarding Agency...... 19WS Reinvigorating Retirement ...... 21WS WRITTEN ANSWERS

Thursday 24 June 2010

Col. No. Col. No. ATTORNEY-GENERAL ...... 279W CULTURE, MEDIA AND SPORT—continued Departmental Mobile Phones ...... 279W Departmental Mobile Phones ...... 286W Departmental Public Expenditure...... 287W BUSINESS, INNOVATION AND SKILLS ...... 312W Listed Buildings: Compulsory Purchase...... 287W Business: Government Assistance ...... 312W National Lottery: Grants ...... 287W Co-operatives and Social Enterprises ...... 313W Television: Advertising...... 288W Education Maintenance Allowance...... 313W Food: Training ...... 313W DEFENCE...... 288W Further Education: Finance...... 313W Armed Forces: Pensions...... 288W Higher Education: Anti-Semitism...... 314W AWE Aldermaston...... 288W Nuclear Fusion: Research ...... 315W Departmental Pay ...... 288W Peru: EU External Trade...... 316W North Atlantic Treaty Organisation ...... 289W Regional Development Agencies...... 316W Puma Helicopters...... 289W Unemployment: Young People...... 316W Vocational Training: West Midlands ...... 316W DEPUTY PRIME MINISTER ...... 343W General Elections: Alternative Vote ...... 343W CABINET OFFICE...... 322W Breast Cancer...... 322W EDUCATION...... 329W Departmental Mobile Phones ...... 323W Academies: GCSE...... 329W Electoral Register...... 324W Building Schools for the Future Programme ...... 331W Non-departmental Public Bodies ...... 324W Children: Epilepsy...... 332W Children: Protection...... 332W COMMUNITIES AND LOCAL GOVERNMENT . 309W Children’s Centres: Doncaster...... 335W Departmental Public Expenditure...... 309W Education Maintenance Allowance...... 336W Departmental Voluntary Work ...... 309W Education Maintenance Allowance: Warrington ... 336W Housing: Construction...... 310W Education Maintenance Allowance: Wigan ...... 336W Housing: Hull ...... 311W Free School Meals...... 336W Local Government Bill...... 311W Free Schools...... 337W Rented Housing: Private Sector ...... 311W GCSE: West Midlands ...... 337W Social Rented Housing: Standards...... 311W National Curriculum Tests...... 337W Schools: Discipline...... 337W CULTURE, MEDIA AND SPORT ...... 286W Schools: Finance...... 338W Arts Council England: Finance...... 286W Schools: Standards...... 338W Bingo: Manpower ...... 286W Specialised Diplomas ...... 338W Col. No. Col. No. EDUCATION—continued INTERNATIONAL DEVELOPMENT—continued UN Convention on the Rights of Persons with Developing Countries: Climate Change ...... 349W Disabilities ...... 339W Overseas Aid...... 349W Youth Opportunities and Youth Capital Funds ..... 340W South Africa: HIV Infection ...... 350W St Helena ...... 350W ENERGY AND CLIMATE CHANGE ...... 344W St Helena: Airports ...... 351W Biofuels...... 344W Sudan: Overseas Aid...... 351W Carbon Emissions...... 344W Departmental Official Cars...... 344W JUSTICE...... 279W Departmental Translation Services ...... 345W Children...... 279W Electric Cables: Countryside ...... 346W Departmental Mobile Phones ...... 280W Fuel Poverty...... 346W Departmental Responsibilities ...... 280W Nuclear Power: Finance ...... 346W Fines: Surcharges ...... 280W Nuclear Power Stations: Construction ...... 346W Prisoners: Gender Recognition ...... 281W Renewable Energy...... 347W Rape: Victim Support Schemes ...... 281W Transocean...... 347W Refugee Migrant Justice...... 281W Refugee Migrant Justice: Legal Aid ...... 281W ENVIRONMENT, FOOD AND RURAL AFFAIRS...... 291W LEADER OF THE HOUSE ...... 322W Biodiversity...... 291W Departmental Mobile Phones ...... 322W British Waterways ...... 291W Farm Animal Welfare ...... 292W NORTHERN IRELAND ...... 290W Farmers: Young People ...... 292W Departmental Public Expenditure...... 290W Food: Security...... 293W Government Food: Farm Assured Sources ...... 291W PRIME MINISTER ...... 302W Icelandic Volcano: UK Environment ...... 292W Decentralisation and Localism Bill ...... 302W Landfill ...... 291W Departmental Internet ...... 303W Water and Sewerage Charges ...... 292W Ministerial Policy Advisers...... 303W Wood: Imports...... 293W SCOTLAND...... 303W FOREIGN AND COMMONWEALTH OFFICE..... 340W Departmental Mobile Telephones...... 303W Aung San Suu Kyi...... 340W Devolution...... 303W Burma: Elections ...... 341W Colombia and Peru: EU External Trade ...... 341W TRANSPORT ...... 294W Colombia: Political Prisoners...... 342W A5: M1...... 294W Departmental Official Cars...... 342W Bedford Station...... 295W Iran: Human Rights...... 342W Bus Services: Ashfield ...... 295W Iraq: Christianity ...... 342W Bus Services: Concessions ...... 295W Overseas Students: Scholarships ...... 343W Departmental Mobile Phones ...... 296W Departmental Translation Services ...... 296W HEALTH...... 325W East Coast Railway Line ...... 297W Departmental Mobile Phones ...... 325W Electric Vehicles ...... 297W Dietary Supplements: EU Law...... 325W First Capital Connect...... 297W Drugs and Alcoholic Drinks: Rehabilitation...... 326W London Underground: Finance ...... 298W Hospitals...... 326W Midland Metro ...... 298W Hospitals: Buildings...... 327W Motorcycles: Driving Tests ...... 298W North Tees and Hartlepool NHS Foundation Railway Stations: Greater London...... 298W Trust ...... 327W Railways: Electrification ...... 299W Patients: Per Capita Costs...... 328W Railways: North East ...... 299W Railways: North West ...... 299W HOME DEPARTMENT...... 282W Road Signs and Markings: Sponsorship...... 300W Border Agency: Manpower...... 282W Roads: Repairs and Maintenance...... 300W Departmental Buildings...... 282W Rolling Stock ...... 300W Domestic Violence, Crime and Victims Act 2004 ... 283W Severn Bridge: Repairs and Maintenance...... 302W Drugs: Misuse...... 283W Written Questions: Government Responses ...... 302W Entry Clearances...... 284W Identity Cards ...... 284W TREASURY ...... 317W Immobilisation of Vehicles...... 284W Black Economy...... 317W Offences against Children: Internet...... 284W Capital Gains Tax ...... 317W Police: Stun Guns...... 285W Child Benefit...... 317W Rape: Warrington ...... 285W Child Trust Fund ...... 318W Smuggling: Ports...... 285W Departmental Official Cars...... 318W Devolution: Northern Ireland...... 318W HOUSE OF COMMONS COMMISSION...... 293W Double Taxation ...... 318W House of Commons Staff: Pay...... 293W Financial Services: Regulation ...... 319W Parliamentary Questions: Email...... 294W Personal Savings: Low Incomes ...... 319W UK Youth Parliament:...... 294W Public Expenditure: Wales ...... 320W Public Finance ...... 320W INTERNATIONAL DEVELOPMENT...... 348W Tax Allowances: Christmas...... 320W Afghanistan: Overseas Aid...... 348W Tax Allowances: Married People...... 321W Departmental mobile phones...... 349W Tax Avoidance and Evasion ...... 321W Col. No. Col. No. TREASURY—continued WORK AND PENSIONS ...... 304W Tax Evasion: Publicity ...... 321W Children: Maintenance ...... 304W Unpaid Taxes...... 321W Departmental Manpower...... 304W VAT ...... 321W Departmental Mobile Phones ...... 305W Welfare Tax Credits: Standards...... 322W Departmental Public Expenditure...... 305W Employment Schemes: Young People...... 306W WALES...... 290W Funeral Payments ...... 307W Departmental Mobile Phones ...... 290W Future Jobs Fund...... 308W Future Jobs Fund: Barnsley ...... 308W WOMEN AND EQUALITIES...... 328W Future Jobs Fund: Streatham ...... 308W Civil Partnerships...... 328W Mortgages: Government Assistance...... 308W MINISTERIAL CORRECTION

Thursday 24 June 2010

Col. No. JUSTICE...... 1MC Topical Questions ...... 1MC Members who wish to have the Daily Report of the Debates forwarded to them should give notice at the Vote Office. The Bound Volumes will also be sent to Members who similarly express their desire to have them. No proofs of the Daily Reports can be supplied, nor can corrections be made in the Weekly Edition. Corrections which Members suggest for the Bound Volume should be clearly marked in the Daily Report, but not telephoned, and the copy containing the Corrections must be received at the Editor’s Room, House of Commons,

not later than Thursday 1 July 2010

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CONTENTS

Thursday 24 June 2010

Oral Answers to Questions [Col. 410] [see index inside back page] Secretary of State for Environment, Food and Rural Affairs

Business of the House [Col. 431] Statement—(Sir George Young)

Budget Resolutions and Economic Situation [Col. 444] Debate (Second day) Debate adjourned

English Language Schools [Col. 535] Debate on motion for Adjournment

Westminster Hall Local Media [Col. 145WH] Debate on motion for Adjournment

Written Ministerial Statements [Col. 19WS]

Written Answers to Questions [Col. 279W] [see index inside back page]

Ministerial Correction [Col. 1MC]