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Parliamentary Debates (Hansard) Tuesday Volume 537 6 December 2011 No. 236 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Tuesday 6 December 2011 £5·00 © Parliamentary Copyright House of Commons 2011 This publication may be reproduced under the terms of the Parliamentary Click-Use Licence, available online through The National Archives website at www.nationalarchives.gov.uk/information-management/our-services/parliamentary-licence-information.htm Enquiries to The National Archives, Kew, Richmond, Surrey TW9 4DU; e-mail: [email protected] 141 6 DECEMBER 2011 142 to meet the aid commitments that countries have entered House of Commons into alongside Britain but have not delivered on. The financial transaction tax which is proposed in Europe, Tuesday 6 December 2011 and which we will not accept, has been spent about four times over on domestic programmes, on the EU budget, The House met at half-past Two o’clock on climate change measures, and on aid. A far better thing for the countries of the European Union to do is PRAYERS to live up to the commitments they made on international development and deliver them out of their domestic [MR SPEAKER in the Chair] budgets. BUSINESS BEFORE QUESTIONS Unemployment LONDON LOCAL AUTHORITIES AND TRANSPORT FOR 2. Kate Green (Stretford and Urmston) (Lab): What LONDON (NO.2BILL)[LORDS](BY ORDER) assessment he has made of the implications for his policies of the Office for Budget Responsibility’s TRANSPORT FOR LONDON (SUPPLEMENTAL TOLL forecast for unemployment in 2012. [84781] PROVISIONS)BILL [LORDS](BY ORDER) Second Readings opposed and deferred until Tuesday The Chief Secretary to the Treasury (Danny Alexander): 13 December (Standing Order No. 20). In line with the weaker outlook for our GDP growth, the OBR has revised up the projected level of unemployment over the year term. In the autumn statement, we committed Oral Answers to Questions to important new steps to provide private sector job creation and reduce unemployment, such as nearly £1 million for the youth contract, an initial £1 billion for CHANCELLOR OF THE EXCHEQUER the regional growth fund, and a £21 billion package of credit easing to support small firms, which are an important source of employment in this difficult time. Official Development Assistance 1. Mr Tom Clarke (Coatbridge, Chryston and Bellshill) Kate Green: With unemployment set to soar to 8.7% next (Lab): What assessment he has made of the effect of year, according to the OBR, can the Chief Secretary changes in gross national income on the level of expenditure explain how meeting the rising cost of out-of-work on official development assistance. [84780 benefits helps to get public borrowing down? The Chancellor of the Exchequer (Mr George Osborne): Danny Alexander: The hon. Lady should also note This Government will honour the commitment that our that unemployment rose by nearly half a million during country made to the poorest people in the world and her party’s time in office. The fact remains that we have increase aid spending to 0.7% of gross national income. to deal with the enormous problem that was left to this To ensure that we do not exceed that target, we have country in our public finances by the previous Government. adjusted the spending plans of the Department for The one thing that would hurt the unemployed and the International Development. Its budget will now increase poorest in this country more than anything would be from £7.8 billion this year to £10.6 billion by 2014-15. stepping away from our plan and letting interest rates go through the roof, causing mortgage costs to rise, Mr Clarke: Is the Chancellor still committed to ensuring business costs to rise, and costs to the country to rise. that he places the achievement of 0.7% GNI for overseas That would be the most significant cause of unemployment aid as a specific commitment for 2013 and in the legislation that we could have. that the Government have promised? Michael Fallon (Sevenoaks) (Con): Will my right Mr Osborne: I am absolutely committed to that hon. Friend confirm that the independent OBR forecasts legislation, but more importantly, frankly, we should be that there will be 1 million more people in employment delivering the commitment on the money for the aid by 2016, even including the reduction in public sector budget. We are doing that in very difficult times. We are employment? Does he agree that the route to higher doing it, I hope, on a cross-party basis. We are, as I say, employment lies not through yet more borrowing but honouring our commitment to the poorest in the world. through getting control of our deficit and opening up Even in these difficult times, Britain has not forgotten opportunities and improving skills, not least through its obligations to the world’s poorest. the apprenticeships that the Government are introducing? Charlie Elphicke (Dover) (Con): While I congratulate the Government on holding to this spending and Danny Alexander: I wholeheartedly agree with my hon. maintaining this commitment, is the Chancellor aware Friend’s assessment. He is right that the OBR forecasts that France, Germany and other European nations have the net creation of 1 million more jobs and the creation not done so well in adhering to their commitments and of 1.7 million jobs in the private sector over the forecast are therefore pledged to, or desire, a financial transaction period. It forecasts that unemployment will fall to 6.2% by tax? Will he be trenchant in making sure that this does 2016, reflecting the fact that the commitments we have not happen, as it will damage our economy and our growth? made will deliver for the British economy. Mr Osborne: There are arguments for, and very much Pat Glass (North West Durham) (Lab): The Government against, a financial transaction tax, but a real red herring have shown that they are very relaxed about unemployment is the idea that a financial transaction tax could be used more than doubling in constituencies such as mine and 143 Oral Answers6 DECEMBER 2011 Oral Answers 144 about their economic policies hurting the poorest and through work experience and additional apprenticeships. the most vulnerable the most. When will they turn their If there is any tragedy in this House, it is the economic attention to companies such as Vodafone, which is strategy of the hon. Lady and her party. I notice that allegedly failing to pay millions of pounds of tax? That she denies the deficit but does not deny the quote that I is an affront to the taxpayers who do pay their share. attributed to her. Perhaps I can recommend some holiday reading for her. “In the black Labour”, which was Danny Alexander: I am not in any way relaxed about written by three of her party’s most successful activists, unemployment increasing in the hon. Lady’s constituency states: or the constituency of any hon. Member. That is why in “It is precisely the vagueness of Labour’s position over…the the autumn statement we set out a youth contract deficit that confirms the voters’ worst suspicions about the Party’s designed to help half a million young unemployed lack of commitment to”— people to get into work and stay in work. I hope that she welcomes such measures. Mr Speaker: Order. We are grateful to the Chief Secretary, but we will move on to questions and, hopefully, Mr Philip Hollobone (Kettering) (Con): Presumably, answers that relate to the policies of the Government. the forecasts from the OBR on unemployment are very [Interruption.] I do not need any gesticulation from sensitive to interest rates. Given that interest yields in anyone. That is the purpose of the exercise, and that is Spain have hit 7% and its unemployment rate is 22%, is what is going to happen. it not the case that unemployment in Kettering and across the country would be far higher if the Government National Asset Management Agency relaxed their deficit reduction plan? 3. Ian Paisley (North Antrim) (DUP): What recent Danny Alexander: My hon. Friend is absolutely right discussions he has had with the Republic of Ireland’s in that assessment. A 1% increase in our bond yields National Asset Management Agency on its operations would cost the country an extra £21 billion in debt in Northern Ireland. [84782] interest, and a 1% increase in market rates would cost mortgage payers £10 billion and businesses £7 billion. The Financial Secretary to the Treasury (Mr Mark That is not the right solution for this country and it Hoban): Treasury officials have met NAMA officials as would certainly lead to higher unemployment. That is part of the bilateral engagement between the Irish and what the Labour party are offering. UK Governments. Day-to-day operational decisions are a matter for NAMA and its overall strategic decisions Rachel Reeves (Leeds West) (Lab): In 2010, long-term are set by the Irish Government. youth unemployment fell by 36%. Will the Chief Secretary tell us by how much long-term youth unemployment Ian Paisley: I thank the Financial Secretary for that has fallen since January 2011? answer. As of today, NAMA is the single largest property owner in Northern Ireland. It is also the single largest Danny Alexander: The hon. Lady will know that creditor operating in Northern Ireland. It threatens to youth unemployment rose by more than 40% during put 150 businesses and individuals into receivership. Labour’s time in office. It is precisely because of the rise What are the Government doing strategically to address in youth unemployment, which I do not regard as the needs of the economy in Northern Ireland to prevent tolerable any more than she does, that we have set out NAMA from aggressively putting people out of business the youth contract.
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