Wednesday Volume 525 23 March 2011 No. 138

HOUSE OF COMMONS OFFICIAL REPORT

PARLIAMENTARY DEBATES (HANSARD)

Wednesday 23 March 2011

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Mr Shaun Woodward (St Helens South and Whiston) House of Commons (Lab): It is good that it is not yet in the bag, because the Secretary of State will know that since 2000, 80 countries Wednesday 23 March 2011 have cut corporation tax rates. I am sure that, among those, he has studied Puerto Rico, a territory of the United States which has an effective corporation tax The House met at half-past Eleven o’clock rate for manufacturing of 2%. What assessment has he made of how that has helped tackle unemployment in that United States territory, and how it has helped those PRAYERS countries generally to recover from global recession?

[MR SPEAKER in the Chair] Mr Paterson: I am most grateful to the shadow Secretary of State for his question, but Puerto Rico is a bizarre comparison. I spent three and a half years travelling to Northern Ireland every week. Week after Oral Answers to Questions week I went to businesses, and week after week they said that a reduction in corporation tax would most help them. NORTHERN IRELAND Mr Woodward: It is clear that the Secretary of State The Secretary of State was asked— travelled week after week, but it is also clear that he learnt nothing. Unemployment in Puerto Rico went up again last month, to 16%. The economy remains in Corporation Tax recession for the fourth year. We need Northern Ireland to get out of recession, not to stay in it, so let us be 1. Guto Bebb (Aberconwy) (Con): What recent progress clear—and a simple yes or no will do. Given the vital has been made in discussions with the Northern Ireland importance of infrastructure, education and skills to Executive and the Chancellor of the Exchequer on attracting and retaining business, will he guarantee that changes to corporation tax in Northern Ireland. [47492] any consequential changes to the annual block grant The Secretary of State for Northern Ireland (Mr Owen and from tax revenue will not leave the Executive with Paterson): I have had discussions with my right hon. an annual net loss? Yes or no? Friend the Chancellor on this issue yesterday and today. A Government consultation paper on rebalancing the Mr Paterson: We need no lectures on the economy Northern Ireland economy will be published tomorrow. from the right hon. Gentleman. He was in the bunker The paper will include a discussion on the potential for with the right hon. Member for Kirkcaldy and transferring the power to reduce corporation tax to the Cowdenbeath (Mr Brown), and he left us with a bill of Northern Ireland Executive. £280,000 a minute in borrowing and £120 million a day in interest costs. We are absolutely clear that, following Guto Bebb: To what extent has the Azores judgment the example of the Republic of Ireland, we will grow had a bearing on the Government’s ability to vary the the revenue. rate of corporation tax in Northern Ireland and other regional authorities? Economic Situation

Mr Paterson: I thank my hon. Friend for that question— 2. Paul Uppal (Wolverhampton South West) (Con): given that I converted him to the Conservative party in What recent assessment he has made of the state of the my kitchen. The Azores judgment will conform to our economy in Northern Ireland. [47493] plans, which will be laid out in the consultation tomorrow. We agree that the powers should be devolved to an 8. David Rutley (Macclesfield) (Con): What recent Assembly that has entire control over its own area and assessment he has made of the state of the economy in that there should be no countervailing intervention Northern Ireland. [47499] from central Government. Ms Margaret Ritchie (South Down) (SDLP): I thank The Secretary of State for Northern Ireland (Mr Owen the Secretary of State for his interest in the subject. Will Paterson): Northern Ireland Executive Ministers and I the Government now consider the devolution of further agree that the economy in Northern Ireland needs to be tax-raising or tax-varying powers to the Northern Ireland rebalanced. The Northern Ireland economy is too Executive? Does he agree that the more economic levers dependent on the public sector, for all the reasons that the Northern Ireland Executive and the Northern Ireland the House will understand. The consultation paper that community have available to them, the more the economy we are publishing tomorrow and our ongoing work will be helped to develop in a better way? with Executive and Treasury Ministers will play a significant part in boosting the private sector and attracting investment Mr Paterson: I thank the hon. Lady for her question. to Northern Ireland. We have no plans to devolve further powers, and I would stress to her and her colleagues that we are Paul Uppal: In the last quarter for which figures are talking about a consultation. It is not in the bag. We available, almost 22% of 16 to 24-year-olds were not have lengthy discussions with other colleagues and the involved in education, employment or training, at a cost Treasury, and it would help if she could galvanise a of more than £250 million. What measures can be taken campaign across Northern Ireland to work with us. to rectify that? 933 Oral Answers23 MARCH 2011 Oral Answers 934

Mr Paterson: The detail of training and employment Mr Paterson: The hon. Gentleman should remember policy is now in the hands of devolved Ministers, but the Budgets that he voted for. I remind him that we are my hon. Friend has touched on a common theme. We borrowing £280,000 a minute, and that we are spending all have an interest in reviving the private sector in £120 million a day on debt interest, compared with Northern Ireland and seeing those young people put £95 million on education. That is where the money is into worthwhile employment. going: we are paying off the deficit that he left behind.

David Rutley: Does my right hon. Friend agree that Air Passenger Duty Northern Ireland benefits from being part of the United Kingdom economy, because it is this Government and this Chancellor who will get the budget deficit back 3. Naomi Long (Belfast East) (Alliance): What assessment under control and rebalance the economy in favour of he has made of the likely effects of changes in air sustainable economic growth, as highlighted recently in passenger duty on business travel between Northern the OECD report? Ireland and London. [47494] The Minister of State, Northern Ireland Office (Mr Hugo Mr Paterson: My hon. Friend is absolutely right to Swire): I have had meetings with the Northern Ireland remind the House of that. We have a worse deficit than Minister of Enterprise, Trade and Investment and with Ireland or Greece, yet our interest rates are considerably my hon. Friend the Economic Secretary to the Treasury lower. That is thanks to the robust measures that the to discuss air passenger duty. My Treasury colleagues coalition Government have taken to enable us to recover fully understand the issues involved. The rates that took from the wreckage left behind by the previous Government. effect last November were, of course, set and legislated for by the previous Government. Mr Nigel Dodds (Belfast North) (DUP): Is the Secretary of State aware that the very high price of petrol and Naomi Long: I thank the Minister for his answer. He diesel in Northern Ireland—the highest in the United will be aware that, in addition to air passenger duty, Kingdom—is having a severe impact on the living standards Heathrow and Gatwick intend to levy passenger landing of families and the viability of businesses? In his discussions charges for regional flights, which will compound the with the Chancellor yesterday and today, has he raised problem. Will he confirm that this matter is at the top of support for a fuel duty stabiliser and other measures to his agenda, so that we can ensure that Northern Ireland tackle this crippling problem, specifically in relation to businesses have access to the capital? Northern Ireland? Mr Swire: Indeed; these things have been discussed at Mr Paterson: The right hon. Gentleman is absolutely ministerial level. I am glad that my right hon. Friend the correct to raise the issue of fuel costs in Northern Chief Secretary to the Treasury is here to listen to the Ireland. He will have to be patient and wait to hear what hon. Lady’s comments. We take this matter very seriously. the Chancellor has to say in a few minutes, but I can tell A lot of the issues to do with Gatwick and Heathrow him that the issue has been raised at the highest level. are commercial matters that are more properly dealt with by BAA. Mr Dodds: I thank the Secretary of State for that answer. An issue that he can respond on is his talk of an Mr Laurence Robertson (Tewkesbury) (Con): Will the enterprise zone for Northern Ireland. Will he elaborate Minister continue to speak to the Chancellor of the on that and tell the House what specific measures he has Exchequer about the possible dangers that a per plane in mind to bring about real change and boost duty could pose for businesses in Northern Ireland, competitiveness for Northern Ireland businesses? Has given the geographical situation of the Province? he looked at the specific issue of air passenger duty, which is having a detrimental effect on Northern Ireland Mr Swire: My hon. Friend raises a good point. It is compared with the Irish Republic? worth pointing out that 75,000 fewer people—business men and tourists—went to the island of Ireland every week last summer. It is important that we keep up the Mr Paterson: I have been using the expression “enterprise amount of people who come here. I think that his zone” for three and a half years as a cover for looking at question might be better directed to Ministers after the ways of reviving the private sector in Northern Ireland. Budget, which will follow in a few minutes, but I am As the right hon. Gentleman knows, I am a convinced sure that his comments will have been heard. evangelist for the proposal to devolve corporation tax, to allow it to be lowered. The paper published tomorrow will also contain an amalgam of ideas from the Executive. Political Donations On the issue of air passenger duty, he will also have to be a little more patient and wait for the Budget statement. 4. Glyn Davies (Montgomeryshire) (Con): What recent discussions he has had with ministerial colleagues on Stephen Pound (Ealing North) (Lab): On the subject the registration of donations to political parties active of robust policies, we have now had nine months since in Northern Ireland. [47495] the emergency Budget, yet the 65% employment rate in Northern Ireland is the lowest in the UK and 10. Graham Evans (Weaver Vale) (Con): What recent unemployment is rising to 8%. May I ask the evangelical discussions he has had with ministerial colleagues on Secretary of State how much further pain families in the registration of donations to political parties active Northern Ireland must be expected to bear? in Northern Ireland. [47501] 935 Oral Answers23 MARCH 2011 Oral Answers 936

The Minister of State, Northern Ireland Office (Mr election. Will the Secretary of State share with the Hugo Swire): An order to extend the current confidentiality House how the new force in UK politics is doing these arrangements for political donations in Northern Ireland days? was debated and approved by both Houses last month. [Interruption.] This order came into effect only from 1 Mr Swire: We remain committed to bringing national March, so I have not had discussions on this issue with politics to Northern Ireland. I am not sure that the hon. ministerial colleagues since then. [Interruption.] Gentleman’s question is within the scope of the subject of registration of political donations, but I can assure Mr Speaker: Order. I understand that the House is him that many people in Northern Ireland and in the eagerly awaiting subsequent business, but there are far rest of the United Kingdom wish to support a Conservative too many noisy private conversations taking place, which party, which is why we are in government and he is not. is very discourteous to the people of Northern Ireland. Aggregates Levy Credit Scheme

Glyn Davies: While discussing donations to political 5. Mark Durkan (Foyle) (SDLP): What recent discussions parties in Northern Ireland in the Northern Ireland he has had with the Chancellor of the Exchequer on the Affairs Committee, the Minister made reference to “details aggregates levy credit scheme in Northern Ireland. of the recipient”, “the amount received” and when [47496] donations were made. Those were the reference points, so can the Minister tell us what progress has been The Minister of State, Northern Ireland Office (Mr Hugo made? Swire): I have spoken with my hon. Friend the Economic Secretary on this matter. The Government remain fully Mr Swire: Indeed, I can. I remain firmly of that view. committed to reinstating the aggregates levy credit scheme We are not in the position that we would like, but I am in Northern Ireland. The Treasury is in regular contact advised that there are serious doubts about whether the with the devolved Administration to co-ordinate the issues that I mentioned can be addressed under existing provision of evidence to the European Commission to legislation, which is very tightly drafted. I hope to make support a new scheme. provision to bring more transparency to existing arrangements when a suitable legislative vehicle can be Mark Durkan: I thank the Minister for that reply. He found. will be aware that the withdrawal of the scheme is having a severe impact on a hard-pressed sector in Northern Ireland. It is also having an impact on the Graham Evans: Will my hon. Friend let us know public purse in its effect on capital expenditure. As well when legislation will be brought forward to make sure as talking to the Treasury, will the Minister consider that donations and loans made to political parties in together with the European Commission whether a Northern Ireland during the prescribed period are not recasting of the overall agricultural levy scheme could disclosed when the prescribed period expires? help to get Europe round its undue hang-ups?

Mr Swire: My hon. Friend makes an important point, Mr Swire: The hon. Gentleman signed the early-day which was behind the introduction of the statutory motion on this matter tabled by the leader of his party, instrument. I hope that this will happen at the earliest the hon. Member for South Down (Ms Ritchie), who is opportunity. Primary legislation will be required: we in her place. My right hon. Friend the Secretary of State have extended the order for a further two years, so it has twice met Gordon Best, the director of the Quarry allows us time to find a suitable legislative vehicle. Products Association and we are seized of the importance of this industry to Northern Ireland and of the unfairness Mr Jeffrey M. Donaldson (Lagan Valley) (DUP): One with the Republic. All I would say to the hon. Gentleman of the problems with regulating donations to political is that the Treasury is continuing its negotiations with parties in Northern Ireland is that a loophole enables the Commission and that the proper place for suggesting some parties to bring funds in through the Republic of ideas is through the Treasury to the Commission. The Ireland—without requiring the kind of registration that Government remain committed to addressing this very applies to funds donated within the United Kingdom. serious— Will the Government move to close this loophole so that there is a level playing field for the funding of Mr Speaker: I am grateful to the Minister for that political parties in Northern Ireland? answer. Jim Shannon (Strangford) (DUP): I represent an area Mr Swire: The right hon. Gentleman will be aware that contains seven quarries which employ more than that any donation over £7,500 has to be declared to the 100 people and generate a multi-million industry that Electoral Commission, as it does in the rest of the UK, exports to all parts of the globe. Will the Minister so that is covered. When we move towards a Bill on the confirm that he will work industriously with the Northern whole issue of elections in Northern Ireland, we can Ireland Executive and, indeed, the Treasury to ensure certainly look at that issue, along with other anomalies that the exemption for the quarries continues in the that we believe exist. near future?

Steve Rotheram (Liverpool, Walton) (Lab): The Ulster Mr Swire: It is quite handy having the Chief Secretary Conservative and Unionist New Force was the snappy to the Treasury here to listen to Northern Ireland title given to the alliance adopted by the Conservative questions. We should try to arrange for it to happen party and the Ulster Unionists in last year’s general more often. 937 Oral Answers23 MARCH 2011 Oral Answers 938

The Government remain very disappointed by the promote the competitiveness to which he has referred? suspension of the aggregates levy credit scheme, but, Will he ensure that if corporation tax is devolved, it is although disappointing, it is unavoidable. I hear what devolved at a fair rate and in a way that does not the hon. Gentleman says about his constituents in make it— Strangford, but this does not affect only Strangford; as I have said, the industry is important throughout Northern Mr Speaker: Order. I should be grateful for a reply Ireland. We are in a difficult position, but I can reassure from the Secretary of State. the hon. Gentleman that we are working closely with Treasury Ministers, as indeed are the Executive in Northern Mr Paterson: The hon. Member for East Antrim Ireland. The Finance Minister himself discussed the (Sammy Wilson) and I discussed this matter at length at matter recently with the Economic Secretary to the Hillsborough the other night. We talked until after Treasury. midnight. He knows that we are proposing a consultation. If the power is then devolved, it will be up to him and Competitiveness his colleagues to decide the manner in which that is done. [Interruption.] He also knows—if he looks south 6. Mr William Bain (Glasgow North East) (Lab): of the border—that the reduction in corporation tax What recent steps the Government has taken to increase there was recently described as a “cornerstone” of the economic competitiveness in Northern Ireland. [47497] success of the rebuilding of manufacturing in the Republic of Ireland. The Secretary of State for Northern Ireland (Mr Owen Paterson): The Government are committed to working Dr Alasdair McDonnell (Belfast South) (SDLP): Can with the Northern Ireland Executive to help boost the Secretary of State give us any advice on steps that private sector growth and investment in Northern Ireland. the Northern Ireland economy might take to become The consultation proposals for rebalancing the economy more productive and efficient? [Interruption.] Iam that the Government will publish tomorrow will send a thinking especially of research and development, and in powerful message to overseas investors. They have the particular of European framework programme 7 for potential to make Northern Ireland a beacon for foreign R and D funding. investment. Mr Speaker: Order. I appeal to the House to come to Mr Bain: Does the Secretary of State recognise that order. It is very difficult for Ministers even to hear the one of the most competitive parts of the Northern questions that they are being asked. Ireland economy is the renewable energy sector? Will he convey to the Chancellor the message that the establishment Mr Paterson: The hon. Gentleman will have to wait of a strong green investment bank with its own borrowing until tomorrow to see the details in the consultation powers during the current Parliament is essential to paper, but I can tell him that we have taken up a range drive the green economy in Northern Ireland? of measures proposed by the Executive. Let me also draw his attention to the national policy that we have Mr Paterson: I thank the hon. Gentleman for that imposed, which involves a huge range of measures to constructive question. He will have been pleased to note revive science and research in this country. the significant investment in Harland and Wolff’s wind apparatus by DONG Energy the other day—that is very much a theme of the coalition Government—but if Enterprise Zone he wants to hear further announcements, he will have to restrain himself and wait for the Budget statement 7. Luciana Berger (Liverpool, Wavertree) (Lab/Co-op): which will be delivered in a few minutes’ time. When he expects plans to establish an enterprise zone for Northern Ireland to be announced. [47498] Julian Smith (Skipton and Ripon) (Con): Northern Ireland, like North Yorkshire, is powered by small The Secretary of State for Northern Ireland (Mr Owen business. What message does the Secretary of State Paterson): My right hon. Friend the Chancellor of the think today’s sizzling Budget for growth will send to Exchequer will unveil the Government’s plans for enterprise risk-takers in Northern Ireland and beyond? zones later today in the Budget. Separately, tomorrow we will publish a consultation paper on rebalancing the Mr Paterson: We have the Ulster fry, with which we Northern Ireland economy and making Northern Ireland can celebrate in numerous splendid establishments in an even more attractive place to do business. Northern Ireland. I think the message is that we have stabilised the economy. We have moved out of the Luciana Berger: I thank the Secretary of State for danger zone that we used to inhabit after inheriting the that reply. A recent report by the Work Foundation mess from the last Government, and today we can found that 80% of the jobs created by enterprise zones celebrate moving forward with a constructive Budget are a result of relocation, and therefore are not new and specific measures to help small businesses in Northern jobs. How will he ensure that the enterprise zones in Ireland. Northern Ireland will be different?

Sammy Wilson (East Antrim) (DUP): I hope that the Mr Paterson: The hon. Lady probably does not know Budget sizzles but does not burn the economy. that I have been using the phrase “enterprise zone” as a Does the Secretary of State believe that a corporation cover-all term for a whole range of measures that would tax change for Northern Ireland which also imposes a revive the private sector in Northern Ireland. I am sure huge financial burden on public expenditure is likely to she agrees that it is unsustainable for—according to one 939 Oral Answers23 MARCH 2011 Oral Answers 940 report—77.6% of the gross domestic product of the Mr Paterson: I wholeheartedly endorse the hon. Lady’s Northern Ireland economy to come from public spending. comments. Unfortunately, the Minister of State and I Tomorrow, we will publish a paper blending our ideas had long-standing commitments that we could not break, with those of the Executive on how we will rebalance but we were ably represented by my hon. Friend the the Northern Ireland economy. Member for Bournemouth West (Conor Burns), who stood in for us, and who will have visited several people David Simpson (Upper Bann) (DUP): Does the Secretary there and expressed the same opinions we would have of State agree that an enterprise zone across the whole expressed had we been in his place. of Northern Ireland is one thing, but if it is interpreted Dissident Activity as it was in the 1980s, that will cause major displacements throughout the Province? 11. Patrick Mercer (Newark) (Con): What assessment he has made of trends in the level of dissident activity in Mr Paterson: I repeat again what I just said: I have Northern Ireland. [47502] used the phrase “enterprise zone” over the past three and a half years as a cover-all term for referring to The Secretary of State for Northern Ireland (Mr Owen investing in a whole range of measures that will help Paterson): Terrorists remain active and the threat level revive the private sector. I have visited the hon. Gentleman’s remains at severe. constituency, and he agrees with me that we must rebalance the economy. The Chancellor will announce the detail Patrick Mercer: Will the Secretary of State join me in of specific measures on enterprise zones in a few minutes, congratulating the Garda on the outstanding co-operation and I hope they will be taken up by the Executive, who over the past few weeks, particularly over the arrest of will have responsibility in Northern Ireland. several dissidents just south of the border?

Security Threat Mr Paterson: I am very grateful to my hon. Friend for his continued interest in Northern Ireland, and we value his experience. I wholeheartedly wish to place on 9. Andrew Stephenson (Pendle) (Con): What recent the record our tribute to the Garda for the work that assessment he has made of the level of threat to they have done. We have an unprecedented level of security in Northern Ireland posed by residual terrorist co-operation with them: I have met Martin Callinan, groups; and if he will make a statement. [47500] the new commissioner; I met the Taoiseach in Washington last week; and I will be visiting Dublin soon to follow The Secretary of State for Northern Ireland (Mr Owen up my recent discussions with the new Tanaiste and Paterson): The threat level in Northern Ireland remains Justice Minister. We are indebted to the work that the at severe. This Government continue to support the Garda have done and by working with them we will Police Service of Northern Ireland in countering the bear down on these unrepresentative dangerous terrorists. small but dangerous groups who regularly endanger the lives of police officers and the general public. That is Mr Gregory Campbell (East Londonderry) (DUP): demonstrated by the recent exceptional provision of an The dissident threat level remains high. Yesterday, the additional £200 million for the PSNI over the next four Secretary of State announced the end of the 50:50 years to combat the threat. discrimination rule in recruitment to the police. Will he join us next week in ensuring that the 10 years of discrimination against young Protestants is completely Andrew Stephenson: I am sure Members of all parties at an end, and in ensuring that young Protestants and will join me in condemning the small number of dissidents young Catholics can join that police service to combat who continue to use violence. Will my right hon. Friend dissident threat levels and ensure a return to normality reiterate how important it is for the public to co-operate in Northern Ireland? with the PSNI by passing on any information that could lead to taking terrorists off our streets? Mr Paterson: I am grateful to the hon. Gentleman for his question. We are happy that the Police Service of Mr Paterson: My hon. Friend is absolutely right to Northern Ireland now represents the community and draw attention to the role that the public can play. The offers a career path that attracts people from all across PSNI now has broad support across the community, it. The issue is now in devolved hands, which is where it and as Robert Peel said, the police are citizens in should be. uniform. If the Antrim road bomb had gone off, members of the public would have been maimed by a device put on a bicycle. PRIME MINISTER Lady Hermon (North Down) (Ind): I thank Members for their silence. The Prime Minister was asked— Given that during the troubles terrorist organisations murdered 102 members of the Royal Ulster Constabulary reserve, and that the Secretary of State could not attend Engagements a thanksgiving service for the reserve at St Anne’s cathedral on Sunday, will he please take this opportunity Q1. [48222] John Woodcock (Barrow and Furness) (Lab/ to put on record his appreciation of the outstanding Co-op): If he will list his official engagements for courage and enormous sacrifice of the RUC reserve? Wednesday 23 March. 941 Oral Answers23 MARCH 2011 Oral Answers 942

The Prime Minister (Mr David Cameron): I am sure that we give the correct advice to all British citizens in that the whole House will wish to join me in paying Tokyo—that is what we have done and what we will tribute to Private Daniel Prior, from 2nd Battalion the continue to do. Parachute Regiment, who died on Friday at Queen Elizabeth hospital in Birmingham having been wounded Edward Miliband (Doncaster North) (Lab): I join the in Afghanistan on Wednesday. Tragically, Private Prior Prime Minister in paying tribute to Private Daniel had just become a father and our deepest condolences Prior. He demonstrated outstanding bravery in the line should be with his family and friends, especially his wife of duty and our thoughts are with his wife and young and his newborn son. We must make sure that he grows son and all his family and friends. up in a country where everyone honours the memory of I am sure that the whole House will also want to his father and what all our armed forces stand for. think of our armed forces personnel now in action in This morning, I had meetings with ministerial colleagues the military operation in Libya and to pay tribute to and others, and in addition to my duties in the House, I the outstanding work they are doing. Following the shall have further such meetings later today. overwhelming vote in the House on Monday, will the Prime Minister update the House on the progress of John Woodcock: I thank the Prime Minister for that our military operation and the actions of British forces? answer and associate myself, and all on this side of the House, with his moving tribute to Private Daniel Prior. The Prime Minister: I thank the right hon. Gentleman The Prime Minister has taken the right decisions to for what he says and for his speech in that debate on extend the life of the Nimrods and HMS Cumberland Monday, which I thought was extremely powerful. To so that our armed forces remain equipped to protect in update the House on the military operations, a no-fly this conflict. He knows the uncertainty we now face, so zone is now in place over Libya and 11 nations are will he, in due course, extend that rethink of our defence contributing more than 150 aircraft. As we discussed on capabilities? Monday, there has been an early and good effect as regime forces have had to retreat from Benghazi, but there is clearly great concern about what the regime is The Prime Minister: Obviously we will look very doing in Misrata. Any idea that the second ceasefire closely at all the lessons we should learn from what we was any more meaningful than the first is, we can see, are engaged in: diplomatically; politically; and in terms complete nonsense. We made good progress in the of both foreign policy and military equipment. What I no-fly zone and good progress in turning some of the would say, though, is that the whole predication of the forces back and protecting civilians. Everything is clearly strategic defence and security review was that we should still in the early stages, however, and a lot more remains be able to deploy at speed anywhere in the world and to be done. have very flexible armed forces, with particular emphasis on transport and on things such as special forces. We Edward Miliband: I thank the Prime Minister for that think that we did anticipate the sorts of things we are answer and for what he said about the debate on Monday. doing now, but if there are further lessons to learn, of We support UN resolution 1973 to protect the people of course we should learn them. Libya. The support of the Arab League was a key factor in securing the UN resolution. Will the Prime Q2. [48223] Jo Swinson (East Dunbartonshire) (LD): Minister update the House on the military contribution Our hearts go out to the people of Japan as we watch that Arab states will make to the operation and what their horror unfold and see warnings today about conversations he has had with Arab leaders about their heightened radiation in Tokyo’s water supply. It is not continued role in the enforcement of the resolution and just earthquakes and tsunamis that can threaten the the plan of action? cooling systems of nuclear reactors, so does the Prime Minister agree that what has happened at Fukushima The Prime Minister: I can do that. First, the Arab will have consequences for the new nuclear power League met again yesterday and reinforced its view that stations proposed for the UK? a no-fly zone is right and that it supports UN Security Council resolution 1973. In terms of concrete assets, I The Prime Minister: I am sure that the whole House can confirm that yesterday the Qataris deployed the will want to join the hon. Lady in sending our condolences first of their contribution—Mirage aircraft and other to people in Japan and to express our admiration for support aircraft—and we will get logistic contributions their incredible bravery and resilience in dealing with from countries such as Kuwait and Jordan. I hope that this immense crisis. Of course we must learn any lessons further support will be forthcoming but I would like to that need to be learned about nuclear power, which is be clear that because we had to act so quickly on why the head of the nuclear safety inspectorate is looking Saturday it was not possible to bring forward as much at this issue. As I have said before, the power stations we Arab support as might have been welcomed by, I think, have in Britain are of a different type from those in everybody in this House. There is clear support from Japan. We are not planning to build any like those, and the secretary-general of those Arab nations. I also had a we are not in an earthquake zone or a zone subject to meeting with the Saudi Foreign Minister yesterday and tsunamis, but of course we have always got to test I believe that support in the Arab world—not just against all eventualities. I am sure that there is further among Arab leaders but among Arab people—for saving testing we can do on nuclear power. lives in Libya is very strong. Japan is doing a good job in dealing with this problem and the signs from the nuclear station are a little better Edward Miliband: Let me emphasise something that than they were a few days ago, but it is certainly not out the Prime Minister mentioned on Monday, which is the of the danger zone. What we should do is make sure importance of the contribution of Arab countries to 943 Oral Answers23 MARCH 2011 Oral Answers 944 the military operation. He also said that there would be Bob Russell (Colchester) (LD): Let’s start with IPSA. a regular and more formal process with the Arab League and others. It seems very important to me that that The Prime Minister: I just heard a suggestion from process takes place. Let me ask the Prime Minister one my hon. Friend that the Independent Parliamentary other thing about our action. Will he clarify the Standards Authority should be based in Croydon. Government’s position on the targeting of Colonel My hon. Friend the Member for Croydon Central Gaddafi? It is important that we stick to the terms of (Gavin Barwell) makes a very good point. We have the UN resolution as we seek to maintain the coalition already saved £50 million by relocating Government we have built on that resolution. property.The Minister for the Cabinet Office and Paymaster General, who sits in the Cabinet and does an excellent The Prime Minister: I am grateful for that question job, has saved £2.6 billion by combining quangos and and for the chance to set this out clearly to the House. public bodies, but I am sure there is more we can do, All our targets must be selected to be absolutely in line including, perhaps, in Croydon. with UN Security Council resolution 1973. That allows us to take “all necessary measures” to enforce a no-fly Edward Miliband: Will the Prime Minister explain zone and to put it in place as safely as possible as well as why he proposes to remove the mobility component of to take action to protect civilian life. All targets should disability living allowance from 80,000 care home residents? be in line with that but I do not propose to give a running commentary on targets or, frankly, to say anything The Prime Minister: The short answer is that we are beyond that. not.

Q3. [48224] Mr David Amess (Southend West) (Con): Edward Miliband: Not for the first time, I have to tell As my right hon. Friend struggles to sort out the mess the Prime Minister what is in his own legislation: clause left behind by the previous rotten Labour Government, 83 of the Welfare Reform Bill proposes precisely that will he take this opportunity to unite the House on and people do not understand why he is doing it. If he is health matters by praising the work of Marie Curie saying that he is going to abandon the policy, then, nurses, highlighting the dangers of prostate cancer and great, let us abandon the policy. supporting low salt week? The Prime Minister: The review of disability living The Prime Minister: I yield to no one in blaming the allowance and the mobility component is wrapped up last Government for all sorts of ills, but I think even I in the new personal independence payment. That is would probably draw the line at blaming them for the what is happening. To be frank, this point has been level of salt in food—[HON.MEMBERS: “Oh, go on.”] raised right across the House of Commons and is a Well, I suspect that the previous Prime Minister probably point that we have responded to. It is a review that the put salt in his porridge, but we will have to leave it there. right hon. Gentleman can take part in; perhaps he can My hon. Friend mentions a very important charity, say something constructive. Marie Curie Cancer Care, and the work it does to help people, particularly when they are suffering often incurable Edward Miliband: It is not a review, it is a proposal—a conditions; it should be praised by everyone in this clause—in the Bill to take away the mobility component House. The whole point of what we want to do through of DLA. Some 22 disabled persons organisations up our health reforms is to involve in an even greater way and down the country are saying that the Government such great charities, which do so much to help people should abandon the policy. I have a suggestion for the across our country. Prime Minister: why does he not complete the review now and say that he is dumping the policy? He has done Mrs Mary Glindon (North Tyneside) (Lab): North it before. Tyneside’s Tory, elected mayor has spoken of her intention to become the council’s chief executive under new The Prime Minister: The first thing the right hon. government powers. Does the Prime Minister think that Gentleman said about disability living allowance was the mayor, who was elected on a political ticket under that he wanted to support our gateway reforms, but we the alternative vote and has no proven professional do not hear much about that any more. As I have said, experience for such an apolitical role, should go back to the review of DLA is rolled into the personal independence the electorate in the true spirit of localism and get their payment. That is how we will reform the mobility opinion on this issue? component. Instead of getting so excited about it, he should congratulate the Government on listening to The Prime Minister: I thank the hon. Lady for reminding opinion from across the House. everyone that North Tyneside has an excellent Conservative mayor who is doing a great job. It will be a matter for Karl McCartney (Lincoln) (Con): My right hon. Friend her and the people and the council of North Tyneside the Prime Minister might be aware that the Financial to work out what a fantastic job she can do in future. Times reported earlier this week that Gaddafi is sitting on $6.5 billion-worth of gold in his war chest. Although Q4. [48225] Gavin Barwell (Croydon Central) (Con): there is precious little to commend the current leader of Croydon town centre is just 15 minutes from central Libya, gold has been the great inflation hedge throughout London by rail, but rateable values are 60% lower. our history. Britain, on the other hand, sold off her gold Does my right hon. Friend agree that there is huge reserves at the behest of the shadow Chancellor, when potential to save public money by relocating part of the he worked as a bag carrier at the Treasury, in order to Government estate from the most expensive real estate bolster the then failing euro. Which of those two is in the country in SW1? more psychologically flawed? 945 Oral Answers23 MARCH 2011 Oral Answers 946

The Prime Minister: That was an ingenious question part in the Government’s council tax freeze. I would from my hon. Friend. I have to say that selling the gold have thought that would be welcomed across the House was one of the many appalling decisions taken by the of Commons, because people do face a difficult situation previous Government and was advised by the two people with the cost of living. We have taken action on council now responsible for their economic policy in opposition. tax; we are lifting people out of income tax; we are uprating the pension in line with earnings, instead of Q5. [48226] Chris Evans (Islwyn) (Lab/Co-op): Why is prices; and I hope that the Chancellor will have a few poor performance still being rewarded in the banking more things to say in a minute or two. industry with massive bonuses? Q7. [48228] Mr Brian H. Donohoe (Central Ayrshire) The Prime Minister: What we have done in the banking (Lab): The Prime Minister knows of my passion for the industry is make sure that it is paying a £2.5-billion no campaign on the alternative vote, and I know that banking levy, not as a one-off, but every single year he will be working day and night on that subject. during this Parliament, so under this Government, the However, I have another passion: legal aid. What will taxes it pays will go up; the bonus levels have gone his Government do to protect those who are debarred down; and the lending to small businesses—and large from legal aid, and to get rid of all the abuse in the businesses—will increase. The hon. Gentleman should legal aid system at present? welcome that approach. The Prime Minister: Of course, this is a devolved Alun Cairns (Vale of Glamorgan) (Con): What issue for Scotland, but what we have done elsewhere in conclusions has the Prime Minister drawn from the the United Kingdom is maintain the grant that we give statement of the secretary-general of the OECD, who centrally to the citizens advice bureaux to make sure recently said that work goes ahead. If the hon. Gentleman looks at “if you don’t deal with the deficit you can be assured that there the comparative figures, he will see that this country will not be growth”? spends way more per head on legal aid than comparator countries, and it is right that it should be reformed. The Prime Minister: The OECD was in town last week and gave the clearest possible message: if we do Q8. [48229] Mr Laurence Robertson (Tewkesbury) (Con): not deal with the deficit, we will not get any growth. Is the Prime Minister aware of the very poor rail That is what it said, and it is about time that the services between Gloucestershire and London? As a Opposition started listening to it. result of that problem, my hon. Friend the Member for The Cotswolds (Geoffrey Clifton-Brown) and I have Q6. [48227] Roberta Blackman-Woods (City of Durham) campaigned very long and hard for the line between (Lab): I am sure the Prime Minister is aware that Swindon and Kemble to be redoubled. Will the Prime unemployment in my constituency will increase as a Minister give every consideration possible to that project? result of public sector cuts. What is his Government doing to expand private sector job opportunities in the area, such as supply-chain jobs from the Hitachi The Prime Minister: I do know the problems that train-building programme? Will he ask the Business there are between London and Gloucester, and also, as Secretary to meet local businesses and Durham county a Member of Parliament with a seat to the west of council about that, to boost jobs in Durham and the London, I know the problems on the Cotswold line, north-east? which has recently been improved through redoubling. I hope that my hon. Friend will sit patiently, because I The Prime Minister: I am very happy to arrange that very much hope that the Chancellor might have something meeting. The point that the hon. Lady makes is absolutely to say about how we will make life easier for my hon. right: at a time when, frankly, any Government would Friend’s constituents who want to get to and from have to make public sector cuts, we have to make sure Gloucester and London. that the private sector grows. That is why we have the regional growth fund, which is putting money and Q9. [48230] Angela Smith (Penistone and Stocksbridge) leveraging new jobs into the north-east. That is why we (Lab): Will the Prime Minister update the House on the will introduce things such as enterprise zones, and that representations that he has received from the Deputy is why, if she sits and waits patiently, she will hear in the Prime Minister on reinstating the loan to Sheffield Chancellor’s Budget a whole series of measures to fire Forgemasters? up the private sector and make sure that we get growth right across our country. The Prime Minister: The hon. Lady knows well that this was done on the basis of affordability, but she also Richard Fuller (Bedford) (Con): After fuel duty, council knows that Sheffield Forgemasters has been encouraged tax is the most despised tax in the country, and under to bid under the regional growth fund; that is an approach the Labour Government it increased mercilessly, year it can take. on year. Will the Prime Minister tell me how many councils, like Bedford borough council, have taken Elizabeth Truss (South West Norfolk) (Con): Given advantage of the offer made by the Chancellor in last the central role that RAF Marham and the Tornado year’s Budget and frozen or reduced council tax? have played in securing a no-fly zone over Libya, and the brave actions of our service personnel despite the The Prime Minister: My hon. Friend makes a good ongoing uncertainty at that base, is it not time that we point. It is worth while noting that we now know that confirmed the future of RAF Marham as a fast jet every single council in the country has agreed to take base? 947 Oral Answers23 MARCH 2011 Oral Answers 948

The Prime Minister: My hon. Friend makes an important Q12. [48233] Neil Carmichael (Stroud) (Con): With the representation on behalf of a vital base in her constituency. recent OECD report underlining the fact that the It gives me the opportunity to pay tribute again to what structural deficit has caused so many difficulties for our our brave pilots are doing, whether flying Typhoons in economy, does the Prime Minister agree that it is all the order to police the no-fly zone, or flying Tornadoes more important that we upgrade our industry and in order to carry out vital operations on the ground in business by providing training opportunities for young Libya. She makes a very strong case, but I know that people? others will be making a case too. These decisions will be taken in due course by the Ministry of Defence. The Prime Minister: My hon. Friend makes an important point. It is why we are making bold and difficult reforms Q10. [48231] Emma Reynolds (Wolverhampton North in education. As we stand today, less than 50% of young East) (Lab): Last week the Prime Minister told the people at 16 are getting grades A to C in English and House that people here are twice as likely to die from a maths. We must make sure that people are properly heart attack as people in France, but is not the truth prepared for the world of work, and that is not good that survival rates are improving, we will have a lower enough. I pay tribute to my right hon. Friend the death rate than France by next year, and we have record Education Secretary, who is setting a higher bar for levels of satisfaction with the NHS? When will he stop himself and for the Government. We have to make sure talking down the NHS and distorting the figures? that we get over it.

The Prime Minister: The NHS has done extraordinary Mr Denis MacShane (Rotherham) (Lab): I welcome things for me and my family. I am passionate about the the Prime Minister’s U-turn yesterday with the NHS. I passionately want it to remain free at the point announcement that the United Kingdom will now opt of use on the basis of need and not related to people’s into the EU directive on sex slave trafficking, which ability to pay. The point of reforming the NHS is to many have campaigned on for six months. This is a safeguard it for the future. That is what everyone in the cross-party issue which he takes seriously. Will he ask House wants. I will never talk down the NHS, but if we the Home Secretary, seated on his left, to look particularly really believe we cannot do better on cancer, heart at unaccompanied children arriving at the Eurostar disease and stroke, we are fooling ourselves. We must do terminal at St Pancras, as there is evidence that some of better, and that is the aim of our reforms. them may be trafficked? We may be able to put some block on this terrible thing with a bit of work there. Duncan Hames (Chippenham) (LD): The coalition agreement promises the public greater accountability in The Prime Minister: I am grateful to the right hon. NHS commissioning through directly elected individuals Gentleman for his question. He is absolutely right: this on the boards of primary care trusts. As PCTs are on is an issue of cross-party concern. As he knows, we their way out, does the Prime Minister accept that the completely agree with what was proposed for the human best way now to deliver that commitment is to reserve trafficking directive. We decided to wait and check that places on GP consortia boards for locally elected people? it would actually be in line with what was wanted and did not have further dangers in terms of our immigration The Prime Minister: One of the ways we can make policy. I am happy to say that we will be opting into the the NHS more accountable is through the better directive, with parliamentary permission. Above all, we combination of the NHS and local government. That is must ensure that our arrangements are in place to help what our proposals envisage. That is the best way to trafficked children, including in the way he suggests. make sure that there is good democratic accountability for what happens in our NHS. Q13. [48234] Matthew Hancock (West Suffolk) (Con): A recent Public Accounts Committee report found that in the past hospitals were built under the private Q11. [48232] Mr David Blunkett (Sheffield, Brightside and Hillsborough) (Lab): The Government have not yet finance initiative even though it was more expensive factored into their future Budget proposals the sell-off than other forms of financing. In some PFI hospitals, of the bank assets that we own. Given the Prime Minister’s it now costs £333 to change a light switch. What is the commitment to volunteering and the dire straits that Prime Minister going to do about it, and whose fault many young people face because of unemployment, will was it? he consider an endowment fund for a nationwide volunteer programme, building on the six-week national citizen The Prime Minister: My hon. Friend makes an important service and benefiting individuals and the nation as a point. Some of the PFI deals that were entered into whole? were extremely expensive, and the costs will rack up on taxpayers for years to come. He does not have to believe The Prime Minister: The right hon. Gentleman makes me, as we now have it from Labour’s shadow Health an extremely interesting suggestion. Obviously, there Secretary, who has made a number of helpful interventions will be an opportunity to sell the bank assets that we in recent weeks. The latest one was in the Morning own. I do not think that that opportunity is right now, Star—not a paper I always read. Whether talking to a or that we should wait to get national citizen service, communist paper or backing Tory plans, he is very which he rightly mentions, up and running. I want to consistent: he is always in favour of what the Government see every 16-year-old in our country have the opportunity are doing. He said: to take part in something like that to make them feel “There is definitely a case for saying we were poor at PFI, poor more part of our country and recognise the responsibilities at negotiating PFI contracts from the outset.” that we all have as we move towards adulthood. I could not agree more. 949 Oral Answers23 MARCH 2011 Oral Answers 950

Q14. [48235] Catherine McKinnell (Newcastle upon Mrs Anne Main (St Albans) (Con): Parents value the Tyne North) (Lab): Some £180 million of land and 15 hours’ free nursery provision they are given, but property assets assembled by One NorthEast are at risk 22 nurseries I have met are concerned that the new of a fire sale to benefit central Government coffers. The guidelines do not give enough flexibility. Will the Prime Association of North East Councils and the Northern Minister talk to my right hon. Friend the Secretary of Business Forum have joined forces in a bid to take on State for Education to see whether there is a problem? those assets for the benefit of our region. Will the Prime Minister back the bid and put his warm words The Prime Minister: I will certainly do that. Obviously, on localism into action? what we have done is to make sure that we have properly funded the extra hours of nursery education for three- The Prime Minister: I am grateful to the hon. Lady. year-olds and, for the first time, introduced that provision As we move from the regional development agencies to for disadvantaged two-year-olds, so that is a big step the new local enterprise partnerships, many of which forward. At a time of spending constraint and austerity, are up and running and doing a good job, it is important we have been able to help the poorest families in our that we ensure we have good consistency and continuity, country to have a better future, but I will certainly take and I will certainly look at the case she makes. on board the point my hon. Friend makes and make sure that she meets my right hon. Friend the Education Secretary to ensure that it is introduced in the right way. Stephen Metcalfe (South Basildon and East Thurrock) (Con): Will my right hon. Friend comment in advance Mr Adrian Bailey (West Bromwich West) (Lab/Co-op): of the Budget on this country’s current financial situation In a newspaper interview last weekend, the Secretary of in terms that I can use to convey to my constituents the State for Energy and Climate Change cast doubt on the dreadful state of the economy that we inherited from viability of investment in the civil nuclear energy industry. the party opposite? Given the strategic importance of the industry and the need for certainty and commitment from the Government, The Prime Minister: One way of putting that inheritance can the Prime Minister reassure the House and business is that we had a Budget deficit that was bigger than that his policy is unaltered in that area? Portugal’s, bigger than Spain’s and bigger than Greece’s. It is only because of the action we have taken in The Prime Minister: I can do that, and the point I government to show how we will pay down our debts would make—the Energy and Climate Change Secretary that we have interest rates in this country that are at a would say exactly the same thing—is that what we have similar level to Germany’s. That is what we have been done is to create a fair playing field where that private able to do, to the huge benefit of our economy and with investment can come forward. What we should not be absolutely no help from the party opposite. doing is having unfair subsidies. We are making sure that on issues such as planning and carbon pricing the Q15. [48236] Paul Blomfield (Sheffield Central) (Lab): situation is very clear, so that nuclear, which is part of It was reported at the weekend that the Department of the energy mix in this country, can go on being part of Health has failed to publish research it commissioned the energy mix in our country. and received last autumn showing the highest ever level Nicky Morgan (Loughborough) (Con): Last Friday I of satisfaction with the NHS. Will the Prime Minister visited Rawlins community college in my constituency urge the Secretary of State for Health to publish that and spoke to a very bright group of economics students. research without further delay, or, by not doing so, will We discussed the fact that Governments cannot spend he confirm that the British Medical Association was money they do not have. The students understood that; right last week when it deplored the Government’s use why does my right hon. Friend think the Opposition do of misleading and inaccurate information to denigrate not? the NHS and justify their reforms? The Prime Minister: My hon. Friend makes a very The Prime Minister: This Government have published good point. I know the Opposition do not like to hear more information about the NHS than any other. Indeed, about the mess they left, but let me give them some new the hon. Gentleman is quoting from a published report. published information about the mess they left. This is The point I would make to him is this: if we had what we inherited: we are 72nd on wastefulness of survival rates for cancer that were the same as the Government spending, behind Kazakhstan and Cambodia; European average, we would save 5,000 lives every year. 108th on Government debt, behind Malawi, Lesotho Do Members opposite want to save those lives, or are and, yes, you’ve guessed it, Libya; and—this is the best they going to stick with the status quo and say that one—on the soundness of banks, we are 133rd. Our there should be no choice, that patients should not have banks, under Labour, were less sound than those in a say in how they are treated and that doctors should Serbia, Estonia, Madagascar and Chad. That is the not be more involved in the health service? What a record we inherited from the Opposition, and we will backward step, and what a backward lot. not tire of reminding them. 951 23 MARCH 2011 Financial Statement 952

Ways and Means ignored for too long. Britain has lost ground in the world’s economy and needs to catch up. In the last decade, other nations have reduced their business tax Financial Statement rates, removed barriers to enterprise, improved education systems, reformed welfare systems and increased exports. Mr Deputy Speaker (Mr Lindsay Hoyle): Before I call Sadly, the reverse has happened in Britain. We gambled the Chancellor of the Exchequer, it may be convenient on a debt-fuelled model of growth that failed. With the to remind hon. Members that copies of the Budget state now accounting for almost half of all income, we resolutions will be available to them in the Vote Office simply cannot afford to go on like this. Britain has to at the end of the Chancellor’s speech. It may be also earn its way in the modern world. appropriate to remind Members that it is not the norm I turn to the forecasts. Last November, I told the to intervene either on the Chancellor of the Exchequer House that the recovery was going to be more challenging or on the Leader of the Opposition. than recoveries from recessions in recent decades. That is inevitable when we have had the sharpest fall in 12.33 pm output since the 1930s, the highest budget deficit in our peacetime, and the largest banking crisis in our entire The Chancellor of the Exchequer (Mr George Osborne): history. But I said that thanks to the course we have set, Last year’s emergency Budget was about rescuing the the independent forecast was for our economy to grow nation’s finances and paying for the mistakes of the in each of the next five years, for unemployment to past. Today’s Budget is about reforming the nation’s peak this year and then fall, and for employment to rise economy, so that we have enduring growth and jobs in through this Parliament. That remains the case in the the future; and it is about doing what we can to help independent forecast we published today. families with the cost of living and the high price of oil. Those forecasts have been drawn up by the Office for We understand how difficult it is for so many people Budget Responsibility. This important change has across our country right now. That we are able now to transformed the way Budgets are put together. So instead set off on the route from rescue to reform, and from of Chancellors fixing the figures to fit the Budget, they reform to recovery, is because of the difficult decisions now have to fix the Budget to fit the figures. Yesterday, we have already taken. the legislation to put the Office for Budget Responsibility Those decisions have brought economic stability, and on a permanent, statutory and independent footing without stability there can be no sustainable growth and received Royal Assent. I am sure that the whole House no new jobs. Without stability, Governments have to will want to thank Robert Chote, Steve Nickell, Graham keep coming back to their citizens for more—more Parker and their whole staff for the very professional taxes and more spending cuts. In Britain, we do not job they are doing. have to do that today. Let me start with their growth forecasts. It has been We have inherited a record budget deficit, but we known for Chancellors in recent years to rattle these off have set out a credible, comprehensive plan to deal with at great speed in the hope that no one will keep up or it. We have had to undertake difficult measures, but we notice. I will not do that. Although average quarterly have already asked the British people for what is needed, growth this year is set to be higher than was previously and today we do not need to ask for more. forecast, the annual forecast for 2011 has been revised So this is not a tax-raising Budget. But nor can we to 1.7%. This the OBR attributes specifically to the afford a giveaway. Taken together, the measures I will weaker-than-expected final quarter of last year, the rise announce today are fiscally neutral across the period. in world commodity prices, and the higher-than-expected This is a Budget built on sound money; a Budget that inflation in the UK. However, the OBR points out that encourages enterprise; that supports exports, manufacturing the effect, in its words, and investment; that is based on robust independent “creates scope for slightly stronger growth in later years” figures: a Budget for making things, not for making than previously forecast. So while it expects real GDP things up. Britain has a plan, and we are sticking to it. growth of 2.5% next year, it forecasts it will then rise to In recent months, many other countries have seen 2.9% in 2013; to 2.9% in 2014; followed by 2.8% in 2015. their ratings downgraded and their borrowing costs soar. Our country’s fiscal plans have been strongly The European Commission has also this month endorsed by the International Monetary Fund, by the published its growth forecasts. These show that the UK European Commission, by the OECD, and by every is forecast to grow more strongly in the coming year reputable business body in Britain. For anyone who than Spain, Italy, France, the average for the eurozone questions whether this matters in the real world, to real and the average for the European Union. businesses and families, they should consider this. Market All countries have to steer a course between two central interest rates in Greece are at 12.5%, in Ireland they are risks: the risk of a European sovereign debt crisis on the close to 10%, and in Portugal and Spain they are 7% one hand, and, on the other, the risk that comes from and 5%. Today our country’s market interest rates have rising global commodity prices. Food prices around the fallen to 3.6%. We have a higher deficit than Portugal, world have increased by nearly 50% since the beginning Greece and Spain, but we have virtually the same interest of last year. Oil has risen by 35% in just five months. rates as Germany. This is our powerful monetary stimulus That is why the OBR expects inflation to remain between to our recovering economy. Stability, credibility, lower 4% and 5% for most of this year, before dropping to interest rates—that is what we have achieved. 2.5% next year and then to 2% in two years’ time. But stability is not enough. So today, in addition to I have today written to the Governor of the Bank of the Red Book, we are publishing “The Plan for Growth”. England to confirm that the inflation target for the For this Budget confronts the hard truth that has been Monetary Policy Committee will remain at 2%, as measured 953 Financial Statement23 MARCH 2011 Financial Statement 954

[Mr George Osborne] remain the world’s leading centre for financial services, but we should resolve that the rest of the country by the consumer prices index. I can also confirm that becomes a world leader in advanced manufacturing, life the asset purchase facility set up by my predecessor will sciences, creative industries, business services, green energy remain in place. and so much more. This is our vision for growth. One cause of current instability is the conflict inside Difficult decisions and major reforms are needed to Libya. The whole House will praise the courage and make it happen, but the alternative is to accept Britain’s professionalism of our armed forces, who are trying to economic decline and a continuing fall in living standards bring that conflict to an end and save lives. I can for our population, and that is not an alternative anyone confirm that the additional cost of military operations in this House should be prepared to accept. will be met entirely from the Treasury reserve. This Budget sets for Britain these four economic The House will also know that last week I authorised ambitions: that Britain should have the most competitive for the UK to take part in a co-ordinated G7 currency tax system in the G20; be the best place in Europe to intervention in support of the Japanese yen. Our hearts start, finance and grow a business; be a more balanced go out to the Japanese people, and this is one way in economy, by encouraging exports and investment; and which Britain can help. It is still too early to say what have a more educated work force who are the most lasting impacts the earthquake and tsunami will have flexible in Europe. Let me now set out the measures that on the world economy. But this is an opportunity for me will achieve these ambitions. to report that we had already decided to rebuild the First, on taxation, here’s the truth: Britain used to UK’s foreign currency reserves, which are at an historically have the third lowest corporate tax rate in Europe. It low level. We will purchase a range of high-quality now has the sixth highest. At the same time, our tax assets, although unfortunately, with the price of gold code has become so complex that it recently overtook now at a record high, we will not be able to replenish the India’s to become the longest in the world. From Adam gold reserves sold at a record low. Smith to Nigel Lawson, people have set out the principles I turn now to the fiscal forecasts for our debt and of good taxation, and this Government declare these deficit. Borrowing to fund the deficit this year is now set principles again for the modern age. Our taxes should to come in below target at £146 billion. It will then fall be efficient and support growth. They should be certain to £122 billion next year, then £101 billion the year and predictable. They should be simple to understand after, then £70 billion in 2013-14, then £46 billion, and and easy to comply with, and our tax system should be then £29 billion by 2015-16. Inflation has had its impact, fair, reward work, support aspiration and ask the most but crucially, the OBR assesses that next year’s structural from those who can most afford the most. deficit remains the same as forecast last November. In In July last year, we set up the Office of Tax Simplification other words, the size of the task of repairing Britain’s to provide independent advice on how to reduce the finances is unchanged. Our national debt, as a share of complexity of the existing system. I want to thank our national income, is forecast to be 60% this year, Michael Jack and John Whiting for the work that they before peaking at 71%, and then starting to fall, reaching have done. Following their recommendations, I can 69% by the end of the period. announce today that this Budget abolishes no fewer This leads me to one of the central tasks of the OBR: than 43 complex reliefs. This includes the millennium that of assessing the Government’s performance against gift aid system, which we will not need for another their stated Budget goals in an open and independent 989 years. However, I have decided not to follow their way, so that we avoid repeating the disastrous experience advice to abolish the community investment tax relief, of the so-called golden rule. Our fiscal mandate is to and instead I encourage people to take it up. But this achieve a cyclically adjusted current balance by the end Budget, at a stroke, removes over 100 pages from our of the rolling five-year forecast period, which is currently tax code and begins the work of simplification. 2015-16. We have supplemented that with a fixed target In the last Budget, I announced that from next month for debt, so that debt should be falling as a proportion welfare payments and public service pensions would be of GDP by the year 2015-16 as well. I can report to the uprated in line with the consumer prices index. I said at House that the OBR confirms that on its central forecast the time that we should also consider uprating the tax we will meet both these objectives—a balanced structural system in the same way, so from April 2012 the default current budget and falling national debt—by the end of indexation assumption for direct taxes will move to the Parliament. Indeed, the forecast remains that we CPI. There will be protection through this Parliament will meet both these objectives one year earlier. for those eligible for age-related, married couple and I said at the start that stability and fiscal responsibility blind person’s allowances, and for employers’ national were not enough. Our country has to compete if we are insurance contributions. The increase in the personal going to create growth and jobs. Britain has fallen tax allowance already announced will vastly exceed behind many others in the world in the last decade. We anything lost through employee NICs uprating, and have dropped from fourth to 12th place in the world that is even before any further increases in that allowance. global competitiveness league, and growth in our country This will bring coherence to the tax and benefit system, has become so unbalanced. Consider this staggering and we look to moving indirect taxes on to the same truth: during the boom years before the bust, private basis when the fiscal position allows. sector employment actually fell in a region as important But there is one further step that we want to undertake as the west midlands. that will dramatically simplify the tax system. For decades, So today’s Budget is an urgent call for action for we have operated income tax and national insurance as Britain. Private sector growth must take the place of two fundamentally different taxes and forced businesses Government deficits. Prosperity must be shared across large and small to operate two completely different all parts of the UK. Yes, we want the City of London to systems of administration, with two different periods 955 Financial Statement23 MARCH 2011 Financial Statement 956 and bases of charge. The resulting anomalies are legion, process; and from April, we are going to impose a and it imposes totally unnecessary costs and complexity moratorium exempting all businesses employing fewer on employers and costs the taxpayer in the extra burden than 10 people, and all genuine start-ups, from new that it places on Her Majesty’s Revenue and Customs. domestic regulation for the next three years. We will So I am announcing today that the Government will also take this fight against regulation to Brussels, where consult on merging the operation of national insurance this week my right hon. Friend the Prime Minister will and income tax. be recruiting other European allies to ensure that our I am not proposing that we extend national insurance continent does not price itself out of the world. to pensioners, or to other forms of income, or that we We are also going to tackle what every Government abolish the contributory principle. Our purpose is not have identified as a chronic obstacle to economic growth to increase taxes; it is to simplify them, and this huge in Britain, and what no Government have done anything task will therefore require a great deal of consultation about: the planning system. Councils are spending and take a number of years to complete, but it is time 13% more in real terms on planning permissions than we took this historic step to simplify dramatically our they did five years ago, despite the fact that applications tax system and make it fit for the modern age. have fallen by a third. Yes, local communities should Making our tax system more competitive is another have a greater say in planning, but from today, we will challenge for the times we live in. Again, let us face facts. expect all bodies involved in planning decisions to prioritise Other countries are quite deliberately making their tax growth and jobs, and we will introduce a new presumption systems more competitive and attracting multinational in favour of sustainable development, so that the default companies away from the United Kingdom. We could answer to development is yes. We will retain existing stand there and do nothing, but increasing the living controls on green belt, but we will remove the nationally standards of every hard-pressed family in the country imposed targets on the use of previously developed depends on keeping companies, and the jobs, the investment land. We will also allow certain use class changes, and the tax revenues that come with them, here in the introduce time limits on applications and pilot, for the United Kingdom. So we will go ahead with the highly first time ever, auctions of planning permission on land. competitive tax rate on profits derived from patents in industries like pharmaceuticals; we will fundamentally Cumbersome planning rules and bad regulation stand reform the complex rules for controlled foreign companies in the way of new jobs, and so too does the shortage of and make them more territorial; and we will introduce finance. Small businesses are the innocent victims of the new rules that effectively apply an ultra-competitive credit crunch, and that is why we have agreed with the 5.75% rate on overseas financing income. This will give banks a 15% increase in the availability of credit to us a far more attractive system than France, America or small businesses. But the lack of start-up capital has Germany. I want Britain to be the place international long been a problem in the British economy. Too often businesses go to, not the place that they leave. we have great ideas in Britain, but it is other countries that exploit them, so today I announce sweeping changes But today I want to do even more, so I can announce to improve the generosity, the simplicity and the reach that from April this year, corporation tax will be reduced of the enterprise investment scheme. From April this not just by the 1% I previously announced, but by 2%, year, income tax relief will increase from 20% to 30%. and it will continue to fall by 1% in each of the following Next year, we will double the amount that any individual three years, taking our corporate tax rate right down to can invest through EIS, increase the size of company 23%—16 % lower than America, 11% lower than France that can qualify for investment, and raise the limit on and 7% lower than Germany—the lowest corporation the amount that can be invested in a company by 400%. tax in the G7. Let it be heard clearly around the world, from Shanghai to Seattle and from Stuttgart to Sao Next week, my right hon. Friends the Prime Minister Paolo: Britain is open for business. and the Business Secretary will launch “Start-up Britain”, To ensure that this is not a net tax cut for banks, I am a new campaign by entrepreneurs for entrepreneurs, adjusting the bank levy rate next year to offset its effect. supported by many of Britain’s most successful firms, In each and every year of this Parliament, our permanent that will help people to start and grow businesses. bank levy raises more in any one year than the last Today we can add to that help. From 6 April this year, I Parliament’s bank taxes. am doubling the size of entrepreneur’s relief to £10 million. The most competitive tax system in the G20 is the Let Britain be the home of enterprise in an age when first of our economic ambitions. The second is that people can invest all over the world. Britain becomes the best place in Europe to start, It is time too that we ended the uncertainty around finance and grow a business. Again, let us face facts: we the taxation of non-domiciles. They are welcome in this are not that today. In the last decade, countries such as country, but I have always believed that they should pay Germany, Denmark, Finland and the Netherlands have something in return for their special tax status. The last all overtaken us in the international rankings of Government followed our advice and introduced a £30,000 competitiveness. That is not surprising when the total charge for those who had lived here for seven years. I cost of regulation imposed on business since 1998 is think we can ask more from those who have been here almost £90 billion a year. even longer, so I am increasing the charge to £50,000 for So in today’s plan for growth, we take action: £350 million non-doms who have been in the country for 12 years. worth of specific regulations will go, including the This will raise over £200 million in the coming years costly dual discrimination rules in the Equality Act 2010. but, in return, and to encourage investment in our Lord Young’s recommendations on health and safety country, I am removing the tax charge when non-doms laws will be implemented in full; the no-win, no-fee remit foreign income or capital gains to the UK for the legal services that prey on employers will be restricted; purpose of investing in a British business, and we will existing regulation will be scrutinised in a public consultation introduce a statutory residence test. To end the speculation 957 Financial Statement23 MARCH 2011 Financial Statement 958

[Mr George Osborne] be simplified to encourage home building. But average mortgage deposits are close to 30%, and this puts home and uncertainty, and to provide stability, I confirm that ownership beyond the reach of many, many families. I will be making no further changes to the taxation of This is not fair. non-domiciles in this Parliament. So I can announce today that, from the proceeds of In an age when business and capital and people can this year’s bank levy, we will fund a £250 million increasingly move anywhere, high tax rates can do real commitment to first-time buyers. A new shared equity damage. That is true for high corporate tax rates, and it scheme, First Buy, will be available for first-time buyers is true for high personal tax rates too. They crush who want to purchase a newly built property, but enterprise, undermine aspiration and often undermine who cannot afford the high deposits. This will help tax revenues as people avoid them. I am clear that the 10,000 families get on the housing ladder for the first 50% tax rate would do lasting damage to our economy time. The previous Government intended to end the if it were to become permanent. That is why I regard it temporary changes to the support for mortgage interest as a temporary measure, just as my Labour predecessor, scheme next January. Instead, we will extend them for the right hon. Member for Edinburgh South West another year. That will reduce mortgage arrears for (Mr Darling), did when he introduced it. I have said around 100,000 out-of-work home owners. before that now would not be the right time to remove it Manufacturing is crucial to the rebalancing of our when we are asking others in our society on much economy. Over the last decade, the share of the economy lower incomes to make sacrifices, for we are all in this accounted for by financial services increased by over together, but I think it is sensible to see how much two thirds, while manufacturing’s share fell by almost a revenue it actually raises. I have asked Her Majesty’s half. Under this Government, manufacturing is now Revenue and Customs—[Interruption.] I have asked growing at a record rate, and 14,000 more jobs have HMRC to find out the truth when the self-assessment been created in the sector in the last three months. To forms start coming in. help that continue, the Government are announcing Of course, taxation must be fair. It is right that the plans today to make our export promotion more wealthiest should pay more than others, and it is especially entrepreneurial and create new export credits to help wrong when they avoid taxes. I will have much more to smaller businesses; launch Britain’s first technology and say later on in this speech on tax avoidance and evasion, innovation centre for high-value manufacturing; and but there is one area that needs extra work in the fund a further nine new university centres for innovative coming months—the taxation of very high value property, manufacturing. where evasion and avoidance are widespread and some Science is one area where Britain already has an of the wealthiest are not paying their fair share. So as advantage over many other countries, and it is central well as reviewing revenues from the 50p tax rate, we will to our future as a place to create businesses. That is one also be redoubling our efforts to find ways of ensuring reason why I protected the science budget from cuts last that owners of high value property cannot avoid paying year. I can tell the House that I have been able to their fair share. find—again from this year’s extra bank levy—an additional Help for small businesses, a boost for enterprise, £100 million to invest in new science facilities at the reforms to planning, and cuts to existing regulations Babraham research campus in Cambridge, the Norwich and a moratorium on new ones, are all part of our research park for environmental and life sciences, the ambition to make Britain the best place in Europe to International Space Innovation Centre at Harwell, and start, grow and finance a business. the national science and innovation campus at Daresbury. Our third ambition is to encourage investment and But if Britain is really to become a home of innovation, exports as a route to a more balanced economy for we want research and development to take place not Britain. In “The Plan for Growth” that we publish just in our great universities, but in our smaller businesses today, we set out specific measures we can take to help a too. One of our greatest high-tech innovators, James wide range of businesses. In life sciences, we will radically Dyson, has urged me to increase the support that they reduce the time it takes to get approval for clinical trials; get. I have listened to him, and have gone even further in our digital and creative industries, we will improve than he recommends. From April this year, the small the intellectual property regime; and in our professional companies research and development tax credit will rise and business services—one of our unsung success to 200%, and from next year it will rise again, to 225%. stories—we will reform our burdensome money laundering We also want to encourage manufacturers to invest in regime now, promote the UK as the global centre of the latest machinery and technology, so I propose to legal arbitration, and launch a new, trusted business double the limit on capital allowances for short-life visa service. assets from four to eight years. We will also extend the Our retail sector includes many small shopkeepers allowance for the renovation of business premises in who are anxious about the impact of coming business assisted areas—which was due to expire next year—for rate rises. The last Government planned that the current a further five years. Supporting the private sector across rate relief holiday for small businesses should end in the whole of the United Kingdom is central to our October this year. I do not think that that would be economic ambitions. right, so I can announce that, at a cost to the Exchequer Savings in the Department for Transport mean that of £370 million, I will extend the rate holiday for small we can also afford £200 million of additional investment businesses for another year to October 2012. in our regional railways. We will go ahead with the We will also take action to help the construction £85 million Ordsall chord scheme, linking Manchester’s industry. Stamp duty will now be levied on the mean Victoria and Piccadilly stations and significantly reducing value of the houses being purchased within a portfolio, journey times between Liverpool and Leeds. We can not the bulk cost, and real estate investment trusts will commit—I know that hon. Members have been calling 959 Financial Statement23 MARCH 2011 Financial Statement 960 for this, as we have just been hearing—to the Swindon- for the power sector. The price will start at around to-Kemble redoubling scheme, which will complement £16 per tonne of carbon dioxide in 2013, and move to a our electrification of the Great Western main line to target price of £30 per tonne in 2020. That will provide Wales. We can also find another £100 million to help the incentive for billions of pounds of new investment councils repair the winter potholes on our roads. in our dilapidated energy infrastructure. To ensure that Helping all parts of our country to succeed is also the customers get a fair deal, we will closely follow developments purpose behind the new enterprise zones that we launch in the energy sector in the light of the Ofgem review today. There have been reports that we would be able to published on Monday. At the same time, I am extending fund 10 new enterprise zones. Today I confirm that the climate change agreements to 2023 and increasing instead we will fund 21 new enterprise zones. Businesses the climate change levy discount on electricity for those will get up to a 100% discount on rates, new superfast who sign up from 65% to 80% from April 2013. This broadband and the potential to use enhanced capital will help our most energy-intensive industries. Green allowances in zones where there is a strong focus on taxes will increase as a proportion of total tax revenues, manufacturing. In return for radically reduced planning as we promised. restrictions, we will let local authorities keep all business The second bold step that we take today is the creation rate growth in their zones for a period of at least of the green investment bank, to support low-carbon 25 years to spend on development priorities. investment where the returns are too long term or too The first 10 enterprise zones will be in urban areas of risky for the market. We have already committed £1 billion highest need, but also the highest potential. They will to the bank; today I commit £2 billion more, funded be in Birmingham and Solihull, Leeds, Liverpool, Greater from asset sales and underwritten by the Treasury. This Manchester, the Tees valley, Tyneside, the Bristol area, will enable the green investment bank to start operation the black country, Derbyshire and Nottinghamshire, one year earlier than planned, in 2012. It will leverage and Sheffield. Tomorrow, my right hon. Friends the an additional £15 billion of private sector investment in Prime Minister and the Deputy Prime Minister will green projects over this Parliament. I can also confirm announce some of the specific locations of the new today that from 2015-16, and subject to our overall debt enterprise zones. I can confirm that a further zone will target being met, we will allow the green investment be located in London, where I have asked the Mayor to bank to borrow and invest in a better future. choose a suitable site. A further 10 enterprise zones will So, a green investment bank with its resources trebled; be announced in the summer. I want local enterprise a new carbon price floor; new capital allowances for partnerships all over the country to come forward with manufacturing; new support for home builders and proposals. first-time buyers; an economy where growth happens Responsibilities are devolved in Northern Ireland, across the country and across all sectors—that is our Scotland and Wales, so we will work with the ambition. Administrations so that they, too, can enjoy the benefits That leads me to our fourth ambition: to create a of this policy. In Northern Ireland, the Treasury will more educated work force who are the most flexible in publish a paper tomorrow on how we help its private Europe. Britain’s working-age population has lower sector to grow. To deal with the unique issues posed by skills than the populations of America, Germany and the Irish Republic’s business tax regime, the paper will France, and that is probably the biggest problem facing consider the case for Northern Ireland having an even our economy in the future. That is why we are undertaking lower rate of corporation tax than the rest of the UK. I far-reaching reform of our schools and universities, and look forward to engaging with all parties there on the funding a pupil premium and additional early-years way forward. support for our most disadvantaged children in poverty. There is one other issue that affects a specific part of It is also why we commissioned Alison Wolf’s impressive our country, and that is the very high water bills for report. customers in the south-west, because of the geography The Government are committed to funding new there, particularly for those on lower incomes. We will university technical colleges, which will provide 11 to come forward with public money to help bring those 19-year-olds with vocational training that is among the bills down. best in the world. The curriculum is being developed in Let me turn now to the opportunity presented by the close co-ordination with both local universities and green energy revolution and our determination to be leading employers. I commend Ken Baker on getting the greenest Government ever. We have already announced the new colleges up and running in our manufacturing our ambitious renewable heat incentive and support for heartlands. To date, the Government have announced low-emission cars, and changes to the company car tax that we will fund 12 new university technical colleges. I regime today will increase that support. Our green deal can tell the House that we will provide funding to to reduce energy bills for homes will be introduced next double that number to at least 24. year. I can confirm that we will act to incentivise and We will also deal directly with the challenge of youth encourage its take-up. We are pioneering new carbon unemployment that has been on a steady rise for the last capture and storage technology, with £1 billion already seven years, and give people direct contact with the provided. Future projects will be funded out of general workplace. Instead of 20,000 young people benefiting spending rather than a complex new levy, but we need from our new work experience scheme, as we planned, to take two further, bold steps if we are to make the we will increase that number fivefold to 100,000 places green energy revolution a reality. over the next two years. In Austria, Germany and First, as I have long argued, investment in green Switzerland, around one in four employers offer energy will never be certain unless we bring some stability apprenticeships. In England fewer than one in 10 do. to the price of carbon. Today we become the first That has got to change, after 10 years of a Labour country in the world to introduce a carbon price floor Government. 961 Financial Statement23 MARCH 2011 Financial Statement 962

[Mr George Osborne] this Government are doing the right thing for the long term: the most competitive corporate taxes; the best Last year, my right hon. Friend the Schools Minister place to start up and run a business; an investing, published a skills strategy and confirmed the largest-ever exporting, greener, manufacturing and more balanced expansion in adult apprenticeships. Today, I am funding economy; a better educated work force; a fairer pensions another 40,000 apprenticeships for young unemployed system. These are our ambitions for Britain, with the people. There are currently only 1,500 higher level measures to match. apprenticeships across the whole of England. This Budget Let me now turn to personal taxes and duties, and let provides for 10,000 more. That brings a total of 250,000 me start by noting that a society should not just be more apprenticeships over the next four years as a result judged by the strength of its economy alone, but also by of this Government’s policies—a Government backing the compassion of its people—[Interruption.] Well, what works: real training, secure jobs and more growth. that is what I happen to think, anyway. The Culture We should not talk about those at the start of their Secretary and I have been working on a series of substantial working life without also talking about those who are reforms that will support giving, from the largest donations coming to the end of their working lives and looking to to the coins collected in the charity bucket. retirement. I am very proud that it was this coalition First, we will dramatically simplify the administration Government who took the decision to re-link the basic of gift aid. Instead of asking charities to submit a state pension to earnings and guarantee its increase written record of every donation made, we will by 2013 through a triple lock. This would simply not have been pay for a much easier online system. Secondly, we will affordable, as Adair Turner’s report argued, without an encourage wealthy people in our society to give even increase in the state pension age. The state pension age more. The gift aid benefit limits will be increased from is set to rise to 66 by 2020. I can tell the House that we £500 to £2,500 so that charities and museums can say will now seek, hopefully with all-party support, a new, thank you properly. We will consult in the coming year more automatic mechanism for future increases in the on how to encourage the donations of pre-eminent state pension age based on regular, independent reviews works of art and historical objects to our nation in of longevity. This is another major reform that will help return for a tax deduction. We will introduce from April Britain to live within her means. next year this major change to our inheritance tax We also need to make sure that our public service system: if you leave 10% or more of your estate to pensions are fair to those who give their working lives to charity, the Government will take 10% off your inheritance help others, and fair to the taxpayers who have to fund tax rate. Let us be clear. No beneficiaries will be better them. Today we publish the result of our consultation off as a result of this policy—just the charities, to the on the discount rate, which shows that a more appropriate tune of £300 million. I want to make giving 10% of rate would be inflation plus GDP growth. This reinforces your legacy to charity the new norm in our country. our case for increasing the employee contributions by The third reform we make to the charitable taxes is an average of 3%. Indeed, the new discount rate could about not the biggest donations but the smallest. We be used to justify further contribution rises. As part of will introduce a new scheme where gift aid can be the wider reforms, I am not proposing to ask for more claimed on small donations, up to a total of £5,000 a than the 3% average. year per charity, without the need for donors to fill in John Hutton has now completed his final report, any forms at all. That means gift aid on the contents of which looks at the pension benefit. I am sure that the collecting tin and the street bucket, and 100,000 charities Members in all parts of this House will want to thank will benefit to the tune of £240 million. Together, these him for a very impressive piece of work—[Interruption.] represent the most radical and most generous reforms Or at least in part of the House. I confirm today that to charitable giving for more than 20 years. Do the right the Government accept Hutton’s recommendations as a thing for a charity, and the Government will do the basis for consultation with public sector workers, unions right thing for you. It is a big help for the big society. and others. There should be no cherry-picking on either But our charity does not extend to those in our side. I believe that this House should also recommend society who seek to avoid paying their fair share of similar changes to the pensions of MPs. taxes. Tax avoidance and evasion mean that we have to We should also address the state pension system, ask more from working families, and that is not fair. which has become unbelievably complex. If people Unfortunately, not enough has been done in recent cannot work out what they are going to get in retirement years to tackle this injustice. HMRC estimates that through the second state pension or how much will be £14 billion was lost through avoidance and evasion in clawed back by the means tests, then they cannot work 2008. Today we publish our new strategy paper on out what they need to save. So the Pensions Minister, tackling tax avoidance and we take specific measures to the Pensions Secretary and I have worked together to shut down the open abuses that have been allowed to develop options including a new single-tier pension. It continue for too long. would be simple, it would be based on contributions, We will close down three forms of stamp duty land and it would be a flat rate, so people know what to tax avoidance, tighten capital gains rules for companies, expect—and it would cost no more than the current and end the practice of disguised remuneration, which system. We currently estimate that this new single-tier sees highly paid employees offered tax-free, lifetime state pension would be worth around £140 per week. It loans that are never repaid; and we are going to tackle will not apply to current pensioners, and it will take the exploitation of low value consignment relief that years fully to come into effect. has left our high street music stores fighting a losing As with the other major reforms that I have announced battle with warehouses in the Channel Islands. In total, today to simplify our tax system, to improve our economic on the numbers audited by the independent OBR, the performance and to reform our public sector pensions, tax avoidance measures in this Budget raise around 963 Financial Statement23 MARCH 2011 Financial Statement 964

£1 billion a year—that is £4 billion over the Parliament. Let me turn to duties on alcohol. We have already We are doing more today to clamp down on tax avoidance announced plans to increase duty on the strongest beers than in any Budget in recent years. and cut in half the duty paid on low-alcohol beers. Beyond that, I can tell the House I have no further That gives us more resources, in a fiscally neutral changes to announce to the rates of alcohol duty put in budget, to help those families who do pay their taxes, place by the previous Government. As usual, these but who are struggling with the daily cost of living. We changes will come in at midnight on Sunday.As announced have already taken steps to help from this April. I am again by my predecessor, tobacco duty rates will increase glad to report that, following measures in my Budget by 2% above inflation. However, it is clear that the last year, every local authority in England has chosen to structure of the tobacco duty regime is being exploited freeze council tax in the coming year. Compared with to produce cheaper cigarettes, so we will change the the amount that council tax could have risen by, this regime to narrow the differential between these lower-cost freeze will save a family in an average band D property brands and the rest, and between cigarettes and hand-rolled £72 a year. In two weeks’ time, the child tax credit for tobacco. This will reduce smoking and improve our lower-income families will increase by an additional nation’s health. These tobacco duty changes will come £255. I can confirm today that in the coming year all into effect at 6 pm this evening. workers in the armed forces, the prison service and the NHS, and teachers and civil servants, earning £21,000 a I turn now to other excise duties. Rates of vehicle year or less will receive a pay uplift of £250. excise duty will increase by inflation only and we will freeze rates for heavy goods vehicles to help our hauliers. As I said last year, the national insurance rate rise I am also proposing to increase the approved mileage that the last Government announced will have to go allowance payments. This mileage rate has not increased ahead, but because we have increased the threshold, it at all since 2002, making those who depend on their car will actually be cheaper to employ people on incomes of for work increasingly worse off. It will now increase less than £21,000 than it is today. That is how we have from 40p to 45p per mile and I can tell the House that stopped Labour’s jobs tax. Anyone earning less than we will extend this relief to cover volunteers travelling £35,000 a year will also be better off because in 14 days’ as passengers, as charities and others have been calling time, the personal income tax allowance—the amount for for many years. people can earn tax free—will go up by £1,000. That is the largest rise in our history. That means, in real terms, All other duty rises will remain exactly as planned by around £160 extra per year or £200 in cash terms for the previous Government—except fuel duty. The price 23 million taxpayers. of petrol has become a huge burden on families. In the last six months, the cost of filling up a family car such The coalition agreement commits this Government as a Ford Focus has increased by £10. This rise has also to real increases in the personal allowance each and hit businesses hard, especially small businesses. It is every year and sets this country the goal that no one important that when shocks like the steep rise in the oil earning less than £10,000 should be caught in the income price occur, a responsible Government are able to listen tax net. This Budget today takes another step towards and respond. that valuable goal. I can confirm that from April next year, the personal tax allowance will increase by a Let us be clear about what is within our control and further £630 to £8,105. That is another real increase of what is not, so that we do not raise false hopes. British £48 extra per year, or £126 in cash terms—together with Governments are not in charge of the world’s oil price, this year’s rise, a total of £326 extra money each year for and as we have seen, events like those in the middle east those working hard to pay for their family’s needs. It can push the cost of petrol at the pump higher. But means that just 10 months into office, this coalition British Governments are in charge of the duty that we Government have taken 1.1 million low-paid people out levy on petrol, and the previous Cabinet put in place, of tax altogether. And one more thing: last year, we before they left office, a new fuel duty escalator that restricted the allowance increase to basic rate taxpayers; involved seven fuel duty increases. Three have already this year, we have not. The result is that no more people taken place, adding just over 3p to the price of petrol. will be pulled into the higher rate tax band as a result of The third step on the escalator is due to come into effect this Budget. next week, and that would add almost another 5p to the Let me turn now to excise duties—first, air passenger price of a litre of petrol. duty. Let me be straight with the House: we had hoped I have made it clear that I would listen to the concerns that we could replace the per passenger tax with a put to me by so many people. Many have suggested that per plane tax. We have tried every possible option, but we should use the extra revenues we automatically get have reluctantly had to accept that all are currently from the North sea. It is true that they go up when the illegal under international law. So we will work with oil price rises, but the OBR confirms that rising oil others to try to get that law changed. In the meantime, prices also cause other tax revenues across the rest of we are consulting today on how to improve the existing the economy to fall by a similar amount, and I am not and rather arbitrary bands that appear to believe that prepared to undermine the public finances like that. the Caribbean is further away than California. We will also seek to bring private jets, which pay no duty at all, Others in this House have suggested that we create a into the scope of taxation. The wealthiest should not separate VAT rate for petrol.The Treasury has examined escape the tax that the ordinary holidaymaker has to this proposal. It would not fully offset the 5p rise that is pay. I can tell the House that with the hefty duty rise last coming, and it would take six years to come into year and with the cost pressures on families, we think it effect—and that is because it turns out to be illegal. So I would be fair to delay this April’s air passenger duty rise have decided to reject this approach and do something to next year. different. 965 Financial Statement23 MARCH 2011 Financial Statement 966

[Mr George Osborne] enterprise, support business and undertake far-reaching reform to help the economy grow. It is the central The North sea oil tax regime was most recently understanding of this Government, and core to our changed in 2006, when the price of oil stood at $66. It is strategy, that these are not two separate tasks: they are now almost double that amount. That means that oil one and the same thing. companies are making unexpected profits on oil prices We are only going to raise the living standards of that are far higher than those that they based their families if we have an economy that can compete in the investment decisions on. Other oil-producing countries modern age. So this is our plan for growth. We want the have a tax regime that automatically regulates returns words: when prices rise. We do not, and the North sea is too “Made in Britain”, “Created in Britain”, “Designed in Britain” mature to introduce such a regime now. Instead, we can and “Invented in Britain” do something else: we can introduce a fair fuel stabiliser. to drive our nation forward—a Britain carried aloft by From tomorrow, the supplementary charge levied on the march of the makers. That is how we will create jobs oil and gas production will increase from 20% to 32%. and support families. We have put fuel into the tank of Even after this, profits on a barrel of oil are forecast to the British economy. I commend this Budget to the be higher in the next five years than in the last five years, House. but this will raise an additional £2 billion of revenue, and we will use the new tax money to do this: first, we Mr Deputy Speaker (Mr Lindsay Hoyle): Under Standing will delay the inflation rise in duty planned for next Order No. 51, the first motion, entitled “Provisional week until next year and also delay the April 2012 Collection of Taxes”, must be decided without debate. I inflation rise until the following summer; secondly, the call on the Chancellor of the Exchequer to move it fuel duty escalator that adds an extra penny on top of formally. inflation every year will be cancelled—not just for this year or next year, but for the rest of this Parliament. PROVISIONAL COLLECTION OF TAXES Motion made, and Question put forthwith (Standing But I do not want important investment in the North Order No. 51(2), sea lost, so if the oil price sustains a fall below $75—and we will consult on the precise figure—we will reintroduce That pursuant to section 5 of the Provisional Collection of Taxes Act 1968, provisional statutory effect shall be given to the the escalator and reduce the new oil tax in proportion. following motions:— That is how it will work: no escalator when the oil price (a) Increase in rate of supplementary charge (Motion No. 8); is high; no extra tax on the profits of North sea oil companies if the oil price falls and stays low. That is the (b) Alcoholic liquor duties (rates) (Motion No. 10); fair fuel stabiliser, and this is the result for Britain’s (c) Tobacco products duty (rates) (Motion No. 12); hard-pressed families: I have made sure there will be no (d) Amusement machine licence duty (amounts of duty) (Motion fuel duty rise this year; I have cancelled the fuel duty No. 13); escalator when the oil price is high; and one final thing, (e) Fuel duty (rates from 23 March 2011) (Motion No. 14); as well as stopping these fuel duty rises, I am today (f) Stamp duty land tax (prevention of avoidance) (Motion cutting fuel duty by 1p per litre. This will take effect in No. 49).—(Mr George Osborne.) petrol stations from 6 pm tonight. Question agreed to. I know that by itself this will not end the pressure on Mr Deputy Speaker (Mr Lindsay Hoyle): I now call family budgets, but we have done what we can to on the Chancellor of the Exchequer to move the motion help—help for families, help for businesses: a Government entitled “Amendment of the Law”. It is on that motion who listen and help. There were some who said that this that the debate will take place today and on the succeeding year my job was to help families with the cost of living, days. The remaining motions will be put at the end of but there were others who said, no, my task was to back the Budget debate on Tuesday 29 March. 967 23 MARCH 2011 Budget Resolutions and Economic 968 Situation Budget Resolutions and Economic What is it about the British snow? There was worse Situation snow in Germany, a big freeze in France, and in the United States the worst blizzards for decades. Despite all that, those country’s economies grew in the fourth quarter. While our growth forecasts have worsened, AMENDMENT OF THE LAW theirs have improved. [Interruption.] The Chancellor Motion made, and Question proposed, should calm down a little. The German economy is (1) That it is expedient to amend the law with respect to the forecast to grow more strongly than last year, and so is National Debt and the public revenue and to make further that of the United States. Growth in the world economy provision in connection with finance. has been revised upwards. Which is the major country (2) This Resolution does not extend to the making of any that is downgrading its growth forecasts? The United amendment with respect to value added tax so as to provide— Kingdom. It is not the wrong type of snow that is to (a) for zero-rating or exempting a supply, acquisition or importation, blame, but the wrong type of Chancellor—the wrong (b) for refunding an amount of tax, type of Chancellor in the wrong type of government (c) for any relief, other than a relief that— with the wrong priorities for Britain—[Interruption.] (i) so far as it is applicable to goods, applies to goods of Mr Deputy Speaker (Mr Lindsay Hoyle): Order. Courtesy every description, and should be shown. The public out there also want to hear (ii) so far as it is applicable to services, applies to services of what the Opposition have to say. If there are Government every description.—(Mr George Osborne.) Members who do not want to listen, will they please leave the Chamber? The public out there want to hear 1.32 pm both sides of the argument. Some people may agree, and some may disagree. Edward Miliband (Doncaster North) (Lab): The Chancellor spoke for an hour, but one fact says it all, Edward Miliband: Government Members shout and and he could not bring himself to mention it. Growth is jeer, Mr Deputy Speaker, as unemployment hits a 17-year down, last year, this year and next year. It is the same high. What more do we need to know about the old Tories. It’s hurting, but it isn’t working. Conservative party? What did the Chancellor say last year about growth? The Chancellor also promised in his June Budget that “Judge me on the figures.” Well, judge him we will. he would deliver “low inflation”, and what has happened? Every time he comes to the House, growth is downgraded. Inflation has risen, month after month after month. Last June, 2011 growth was down from 2.6% to 2.3%. That did not simply happen by accident. It is happening In November, it was down again. In January, what did because the Chancellor made the wrong decision on the Prime Minister say? His three priorities for the year VAT. Same old taxes, same old Tories. were growth, growth, growth. And what has happened The Chancellor promised us falling unemployment in this Budget? Growth is down, down, down. Taking too, and what has happened since he delivered his first account of all the measures—[Interruption.] Budget? Over 60,000 more people are now looking for work. To this Tory Government, just like those of the Mr Deputy Speaker (Mr Lindsay Hoyle): Order. We past, unemployment is a price worth paying. People should show the Leader of the Opposition the same who heard the Chancellor’s Budget speech today will courtesy that was shown to the Chancellor of the Exchequer. wonder what world he was describing. [Interruption.] I think that the Chancellor should listen to this. Edward Miliband: What is the Chancellor’s singular In the constituencies of more than 130 Members of achievement? To deliver a budget for growth that Parliament, 10 people are chasing every vacancy. One in downgrades the growth forecasts. Growth is down this five young people is looking for work. Families are year to 1.8%, and it is downgraded next year too. That seeing their living standards squeezed, not just this year did not happen by chance; it happened by choice—the but year after year. What do the Government say to Chancellor’s choice—and it was the wrong choice: to go communities that are losing their jobs? Let me tell the too far and too fast. In the Chancellor’s own words in House what they recently told the people of Newport, the June Budget, he chose to go £40 billion further and justifying the closure of their passport office. They said faster in tax rises and spending cuts than our plan to that the redundancy payments of the staff who were halve the deficit over four years. That pace of cuts has being sacked would provide a seen consumer confidence fall in almost every month “boost in trade for the local economy”. since the general election. What kind of planet do these people live on? On In his first Budget, the Chancellor promised growth, on inflation, on unemployment, on the promises “steady and sustained economic recovery”.—[Official Report, that he made, the Chancellor could not bring himself to 22 June 2010; Vol. 512, c. 168.] admit that his second Budget tells the story of the When last September’s growth figures were published, failure of his first. At this stage of the recovery, growth he took the credit. He called the figures “a vote of should be powering ahead and unemployment should confidence” in the Government’s economic policy. But be falling fast. Every month that unemployment is when the economy contracted in the fourth quarter, higher than it should be stores up long-term damage for what did he do? He blamed the snow. Even he must our country. Every month when growth is lower than it appreciate the irony. While the Prime Minister was should be, that hits the future potential of our economy. grounded from his Christmas trip to Thailand, the The problem is that, instead of admitting it, the Chancellor Chancellor was on the piste in Klosters. I suppose it was refuses to change course. What did the Energy Secretary the right type of snow for a ski-ing holiday; it was just say? If the figures change, the Government the wrong kind of snow for our economy. “should not be lashed to the mast” 969 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 970 Situation Situation [Edward Miliband] tells us all we need to know about this Government’s values and how they think our economy succeeds: greater of their reckless gamble. They should be willing to insecurity as the route to greater prosperity. We take a change and to think again. different view. Flexible working is yet another broken It is not as if the Government have not had practice promise from the broken-promise Prime Minister. in the U-turn business. Indeed, they are becoming past While we are on the subject of broken promises, let us masters at it. On forests, school sport, housing benefit remember what the Prime Minister said before the for those looking for work and even the vanity election: he said he would be the banker basher in chief. photographer, they have been forced to climb down. It The Chancellor made great play of that in his Budget is on this, the issue that matters most, that they are least speech, but the reality is this: last year Labour’s bonus willing to change. At the weekend we learned something tax raised £3.5 billion—it is in the Red Book—and this new about the Chancellor. Apparently, his political year the bank levy raises just £1.9 billion; it is a Tory aspiration is to be a blend of Nigel Lawson and Michael Government cutting taxes for the banks while they raise Heseltine. Another comparison springs to mind. We see taxes for everybody else. He should have used the money the same hubris and arrogance that we saw in the early from the bank levy to invest in the future jobs fund—which 1990s, the same broken promises, the same view that they abolished—to make a real difference to housing in unemployment is “a price worth paying”. The Chancellor this country and to boost enterprise. is Norman Lamont with an iPod, and on his playlist, no doubt, is “Je Ne Regrette Rien”. They are failing on growth, and they are failing on This is not a growth Budget. It is not a jobs Budget. It living standards too. What did the Prime Minister say is a Budget for more of the same, from a complacent, before the election to families receiving tax credits? He arrogant Chancellor in a complacent, arrogant Government. said that below £50,000 a year, their tax credits were It’s hurting, but it isn’t working. safe When Labour said otherwise, the Home Secretary said this: Let us not forget that these are not just the Chancellor’s decisions, and they are not just the Prime Minister’s “That is a lie, and it is irresponsible for Labour to be…worrying decisions; they are the Deputy Prime Minister’s decisions families needlessly.” too. He is an accomplice to the Tory plan. When it But what is the truth? Next year, over 1 million families comes to the economy, the man who coined the phrase with incomes as low as £26,000 will lose all their tax “alarm-clock Britain” has the snooze button well and credits. The Government should be ashamed of their truly on. Nobody voted for this deficit plan, least of all broken promises on tax credits. his Liberal Democrat voters, who were told in promise after promise that he would never countenance it. If I That is part of the cost of living crisis they are can put it this way to him, it is no wonder nobody wants imposing. The Chancellor trumpeted the rise in the to share a platform with him. personal allowance, and said everybody earning under £35,000 would be better off, but let us look at the facts. On the measures in the Budget, I welcome the support He came along in the June Budget and put up VAT, for the armed forces, and on the measures the Chancellor costing families £450 a year. Now he has the nerve to proposes to support growth, we will look at them but expect them to be grateful when he gives them a fraction there is little reason to believe they will make the of their own money back. What did the Institute for difference to growth that we need. Indeed, the Justice Fiscal Studies tell us this morning? It said: Secretary fell asleep during the Chancellor’s speech, his growth strategy was so compelling. The Office for Budget “there is an awful lot of giving with one hand...and taking away Responsibility has already factored in every single measure with lots and lots of other hands.” he has just announced, and it still produced today’s It is a classic Tory con. downgraded growth forecast. We cannot blame people for being sceptical when the What about their decision on petrol? The Chancellor Chancellor says he has a new flagship policy for growth, has done the same thing again. He has cut duty by 1p, because they are asking what happened to his last but he has whacked up VAT on fuel by 3p. Families flagship policy for growth at the centre of his June won’t be fooled; it’s Del Boy economics. For a two-earner Budget. Does anyone remember the national insurance family, both on average wages, it will be 5p up in the holiday? He was strangely silent about it today. In June, basic rate of income tax and just 1p down next year. he took the credit at the Dispatch Box for helping What do the British people know from history? They 400,000 small firms, but how many have actually benefited? know that every Tory tax cut ends up costing them He has been strangely shy in revealing the figures, but more; same old Tories, same old deceit. someone let slip to the Financial Times that by mid-January We needed a Budget that changed the direction of it wasn’t 400,000, it wasn’t 40,000, it wasn’t even 4,000; economic policy. We needed a Budget that protected the it was less than 0.5% of the number he promised, just promise of Britain that the next generation does better 1,500 businesses. than the last. We needed a Budget that changed course On the Chancellor’s incentives for small firms, we will on cutting too far and too fast. The Chancellor said at look at the detail, but I have to say that his decision to the weekend, with his customary modesty, that he had cancel flexible working for families with children aged completed his rescue mission of the British economy. between 16 and 18 is extraordinary. This Prime Minister After this Budget, it is not the Chancellor who is took the credit for championing that policy with Mumsnet, rescuing the country; it is the country that needs rescuing and then a few months later he takes the credit with from the Chancellor. When families look at this Budget— small business for dumping it. We have to ask, has he look at the squeeze on their living standards, look at the got no shame? The idea that families needing flexibility job losses in their communities—they will conclude: it’s imperil our economic future is, frankly, absurd, and it hurting but it isn’t working. 971 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 972 Situation Situation Ian Murray (Edinburgh South) (Lab): On a point of always sound attractive, but the test is whether they order, Mr Deputy Speaker. A former Chancellor of the form a coherent strategy. On those grounds, I warmly Exchequer, Mr Hugh Dalton, resigned in 1947 for leaking welcome what amounts to a new agenda for tax reform part of his Budget to a journalist when on the way into to create the most competitive tax system in the advanced the Chamber to deliver it. Given that we have heard world. I particularly support the reductions in corporation nothing in the Chancellor’s statement today that had tax, which will bring it down to 23% within a few years. not already been trailed in the media on Monday, It is an absolute disgrace that the UK now has the Tuesday and this morning, please will you, Mr Deputy longest tax code in the world. The complexity of the Speaker, use the good offices of the Speaker to make system is getting in the way of thousands of small sure that senior members of this Government make businesses in our constituencies—these are the very important statements to the House before going to the people who can take us back to sustained growth. We media? must have a tax system that allows enterprise to flourish. A few weeks ago, the Treasury Committee published a Mr Deputy Speaker (Mr Lindsay Hoyle): The principle report setting out the key principles that should underpin is clear, and it will have been heard by those on the tax reform. I can summarise them briefly: let us have Treasury Bench. We must now move on. more simplicity, let us have more stability and let us have lower rates and fewer reliefs, where possible. I note 1.48 pm that in this Budget the Chancellor has abolished 43 reliefs and got rid of 100 pages of the tax code, which is a huge Mr Andrew Tyrie (Chichester) (Con): This Budget step forward. Let us have less meddling in the tax will be judged on whether it keeps us on course to tackle system as well. The Chancellor appears to have set us the deficit, and on whether it provides a strategy to out in the right direction and it will be for the Treasury improve the long-run performance of the British economy. Committee and others to judge whether his proposals I will mention a number of concerns about the growth match up to the principles set out in our report, which strategy shortly, but first let me say that we all need to match closely what others in the tax advice industry be clear about one thing: we as a country are living have concluded as being the right way forward. beyond our means, with £1 in every £4 we spend being The Treasury Committee will also examine who gains borrowed. That overshadows everything else today. and who loses from the Budget. Last year, the Committee Despite all the clash of party cymbals, the gap between demanded an unprecedented amount of detail on the the parties on the scale of the action required to reduce distributional effects of the Budget and the Chancellor the deficit is not so big; at least two thirds of the responded by publishing more information than had adjustment had been signalled by the previous Chancellor ever been provided by a Chancellor before—I commend in his Budget a year ago, and I regret that he is not in him for that. This will be particularly important with the Chamber at present. It was courageous of him to set respect to the plan to merge income tax and national out that deficit reduction plan and those spending cuts insurance contributions. Successive Chancellors of the before the election, but he did it, and today the current Exchequer have examined that beguiling idea closely Chancellor has stuck to his plans to sort out the public and in the end rejected it, largely because it hits the finances. That has taken courage too, and he deserves incomes of certain groups in unexpected ways. Perhaps our full support, as he has done the right thing. its time has come, and the Treasury Committee will take I want to make three further points on the deficit. evidence on whether the time has indeed come to implement First, the Government are not reducing public expenditure it. We should also examine a number of other proposals to dangerous levels. At 40% of gross domestic product that may have long-term distributional impacts, among by the end of the Parliament, it will be returned to which is the encouragement of charitable giving with broadly the same level achieved by Labour in 2008. the sizeable extension of gift aid and the inheritance tax None the less—my second point—the retrenchment reliefs. I hope that the vast majority of us in the House will feel more painful from this time on. The consolidation welcome that too. in each of the next three years, at about £25 billion to The Committee will also do its best to examine the £30 billion a year, is three times the amount implemented coherence of some of the Chancellor’s other measures in the first year of this Government. when set against wider public policies. I can best illustrate The third point I wish to make on the deficit is that that by alluding to points made to me by colleagues in the pressure to flinch will now mount and we simply the House in recent months. For example, the Chancellor must not do so, for at least two reasons. First, doing so announced the creation of 21 enterprise zones, which would cost the country a fortune in higher debt service must be designed carefully to ensure that they create costs as markets lost confidence in economic policy. jobs and increase overall activity. The risk with such Secondly, doing so would mean that the spending lobbies zones will always be that they distort activity at the would have a field day and once they smelt blood the boundaries and add no new jobs. Government’s economic strategy would be put severely at risk. Robert Halfon (Harlow) (Con): I thank my hon. I wish to say a few words about the growth strategy. Friend for his thoughtful remarks. Does he not agree Today, the Chancellor announced a comprehensive new that the enterprise zones should be extended out of the approach, containing many measures that we should cities and into towns such as Harlow, which has a strong welcome, not least the large list of deregulation measures scientific corridor? he cited, the simplification of planning and the measures to improve access to start-up capital. On all those, it is Mr Tyrie: It just crosses my mind that my hon. essential that each part of the strategy is consistent with Friend might have an interest in Harlow. The crucial other parts of public policy. Individually, direct measures issue is that if we are to create areas that have special 973 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 974 Situation Situation [Mr Tyrie] London and the south-east? Should we not know more about how that is going and whether it is, in any way, a reliefs, we must not inadvertently end up merely moving success? activity around the country while adding nothing to the overall welfare of UK Inc. That involves a difficult Mr Tyrie: That is an interesting point. As the hon. judgment and we need to look extremely carefully at it. Gentleman knows, the Committee will be holding hearings next week and we will have an opportunity to take Jonathan Evans (Cardiff North) (Con): My hon. evidence on exactly that point. Friend will have heard the Chancellor say that discussions I wish to draw my remarks to a close by observing will take place on the position in Wales and Scotland. If that growth and the deficit reduction strategy—the two the Welsh Assembly were not to follow this policy, the issues I have been discussing—will be one and the same existence of an enterprise zone in the Bristol area might thing if a reduction in the size of government allows result in that very relocation to which my hon. Friend room for the private sector to grow. I know that this is refers. not something on which agreement will be reached Mr Tyrie: I note what my hon. Friend says and think across the House and that it is the very stuff of party that careful account needs to be taken of those points. politics, but I hope that Members sitting on the other side of the House will permit me to end with a personal Another area in which it is important to have coherent view. Even if there were no deficit, we should still policy is on the cost of fuel. This Budget gives some reduce public spending because at close to 50% of gross relief on fuel duty rises, with the cancellation of the fuel domestic product it is too high. It reduces choice and duty escalator, among other things. However, while freedom for millions of individuals, and it burdens motoring bills are being reduced, other Government enterprises with unacceptable levels of taxation. During policies are putting up the cost of energy for a lot for the 13 years of the previous Government, public spending businesses and home owners in other ways, not least averaged about 40% of GDP.I support this Government’s through the price of electricity, and the cost of rail plans to reduce it to that level again. travel is also increasing. Does all this—a reduction for motorists, but an increase for rail users and much Several hon. Members rose— higher energy bills—form a coherent policy? I do not know, but that needs to be carefully examined, particularly Mr Deputy Speaker (Mr Lindsay Hoyle): Order. Many in the light of the Chancellor’s announcement of a floor Members want to speak today—quite rightly—and we price for carbon. All these issues need to be carefully want to get as many in as possible. There is no time limit examined, because a distortive energy policy will make on speeches but brevity would help other people. Britain less competitive, particularly in our export markets. In our efforts to return to sustained growth, we need 2pm to make the best use of every pound invested in our public services. Another example of the need to make Sir Stuart Bell (Middlesbrough) (Lab): I am grateful sure we have coherence in growth policy has been put to for the opportunity to speak early and to follow the me by colleagues on both sides of the House. They have hon. Member for Chichester (Mr Tyrie). He made three asked whether spending £17 billion on a high-speed rail points that I would like to take up. First, he referred to link is better use of the money than investing in modern the reduction in the deficit over the next four to five rolling stock and improving the existing tracks. I suspect years and said that he thought that that would cause that millions of rail commuters who cannot currently grave concern and bring great pressure to bear on the get a seat and whose trains are unreliable and relatively Government not to continue with the programme. He is slow will be interested in the answer to that question. I perfectly right: £146 billion will be reduced to £122 billion, am very pleased that the Select Committee on Transport which will be reduced to £70 billion, which will be has just announced an inquiry into that matter, as a lot reduced to £26 billion in the years 2015-16. That is a of people will await its outcome. massive and steep drop and will have serious consequences for the public sector, which the hon. Gentleman Steve Baker (Wycombe) (Con): Does my hon. Friend acknowledged. agree that high-speed rail has the potential to be a In his Budget speech, the Chancellor did not mention profoundly bad economic decision for the whole country? the welfare state or the point on which the hon. Member for Chichester finished his speech, which is the balance Mr Tyrie: What I am trying to do is not answer the between the public and private sectors. We will see a questions, but pose them for Select Committees and clear imbalance between the public and private sectors others to try to answer. I am trying to point out that in as regards the question of whether the public sector can order to generate a coherent growth strategy, a large shed jobs and whether they can go into the private number of policies need to be looked at in the round to sector. That is an interesting point that will be followed ensure that we are not wasting public resources. closely in the north-east of England, where some 47% of Mr Andrew Love (Edmonton) (Lab/Co-op) rose— employment is in the public sector. We will then see the difficulties and dangers of moving quickly and rapidly Mr Tyrie: I shall give way to a fellow member of the with such a massive debt reduction over four to five years. Treasury Committee. Harold Wilson once said that one man’s pay rise was another man’s ticket to the dole queue, but the deficit Mr Love: Does it not concern the hon. Gentleman reduction we are talking about today involves one man’s that nothing has been said in today’s Budget about the job passing from the public sector to the dole queue. I centrepiece of the Government’s growth strategy—the must tell the hon. Member for Chichester, since he national insurance holiday for small companies outside made the point, that he must remember that those who 975 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 976 Situation Situation work in the public sector are producers who pay taxes 40% debt in relation to gross domestic product. My and consume and to remove them from that sector with recollection is that for some years it was 37% and it was such a drastic and rapid reduction in the deficit will not the financial crisis that pushed it up to where it was. add to the prosperity or standard of living of our people. Toby Perkins (Chesterfield) (Lab): Would my hon. Friend also say that what is particularly startling today Mr John Redwood (Wokingham) (Con): The hon. is that, after all the measures we have heard from the Gentleman should remember that the Chancellor has Chancellor about in the Budget, the growth forecast has announced today that over five years, this Government taken place as an after-effect? How bad would the plan to borrow an additional £485 billion—or a 50% growth forecast have been without those measures? It is increase in official state debt. They are not paying down still drastically down from what the Chancellor suggested the deficit or paying off the debt—they are just trying to that it would be when he delivered his previous Budget borrow a little less each year, but it is still adding a huge nine or 10 months ago. amount to the national mortgage. Sir Stuart Bell: That is the point that the Leader of Sir Stuart Bell: I was much amused when statements the Opposition made. I was reminded by those on the were made about how the debt was reduced, how much Front Bench—I had not got so far in my speech—that if we had to pay off and how much the Labour Government growth is down, inflation is up. The Chancellor made a borrowed. In the month of February, the Government point about commodity prices going up. They are going borrowed £11 billion when they should have borrowed up in France, where inflation is 2%. We have higher £8 billion. It is perfectly correct that we have mixed up inflation because of the Government’s policy. We have the structural deficit with the overall deficit, but public depreciated the value of our currency over a period of spending will continue to go up. There was a certain time by 25%. We have increased our exports but we have sleight of hand from the Chancellor when he made his also increased our imports. Our imports are still greater Budget speech. than our exports. We are now importing inflation. The Mr Kevan Jones (North Durham) (Lab): Does my difference between French inflation at 2% and our hon. Friend agree that cutting public sector jobs has a inflation, which will run between 3.5% and 5%, is that direct effect on the private sector? I do not know we are importing it, because of Government policy. whether he has seen the study modelling done by Durham Unemployment is going up; it is at a 17-year high. university that shows that in the north-east, some 50,000 The Chancellor made a great thing about 3,000 jobs in jobs will go because of public sector cuts, 20,000 of the manufacturing sector, but he did not refer to all the which will be in the private sector. jobs that have been lost. How many more jobs will be lost when we move into the cuts to local councils that Sir Stuart Bell: I have seen that study. I have also seen will start on 1 April? How will Middlesbrough council the study by PricewaterhouseCoopers about the impact cope with a 28% deficit reduction? How will the national on the north-east of the various deficit reduction plans. health service cope? We know that we will lose at least May I, without in the least way being sycophantic, 1,000 jobs in Middlesbrough and unemployment in my congratulate the Leader of the Opposition? He made a constituency is disgracefully high. We have the fourth short and precise speech but he hit every nail on the highest unemployment rate in the country and that is head that needed to be hit. Growth is down. Snow or no wrong. It happened under a Labour Government and snow, we entered into zero growth in the last quarter. under a Tory Government. The cuts that are being Where is growth going this year? It is at 1.7% for the announced and those that have been made through the year. How does that compare with Germany, where massive deficit reduction programme announced by the there is 3% growth? Chancellor in his previous Budget will push us further down. Jesse Norman (Hereford and South Herefordshire) No reference was made, as I have said, to the welfare (Con): Will the hon. Gentleman enlighten the House state. What happened to the welfare state? What happened about when in any recovery from any major asset-based to the balance between the public and private sectors? deflation growth has returned within even a five or What happened to those who are unable to look after seven-year period? One thinks of the 1930s, and there themselves? Where was all that in today’s Budget? was no return to growth until the end of that decade, and of Japan, where there was no return to growth until David Rutley (Macclesfield) (Con): The hon. Gentleman the beginning of this decade. How can he possibly has talked about what is happening in the north-east. In attribute the situation as regards growth to this Government the north-west, we have seen public sector jobs increase in such a way? by 100,000 between 1999 and 2009, whereas in the private sector, we have seen growth to the tune of 10,000 Sir Stuart Bell: I am grateful to the hon. Gentleman jobs in the same period. That is completely unsustainable. for his point, because we have argued consistently—and What are the Opposition’s proposals to address that so has the international community—that we had a situation? financial crisis from 2008 and 2009 and that out of that financial crisis, without referring to tsunamis or earthquakes, there have been many aftershocks and it will take much Sir Stuart Bell: That might be the figure in the hon. time to get over that. I agree with that point but it was Gentleman’s part of the world, but it might not be a not us who said that we would raise growth last year—it figure in other parts of the world. was the Conservative Government. The hon. Member Let me get back to the point—we created a balance for Chichester made an excellent point when he said, between the public sector and the private sector and we quite rightly, that under a Labour Government we had believed that that balance was right for our country. In 977 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 978 Situation Situation [Sir Stuart Bell] the Governor of the Bank of England was before the Treasury Committee two weeks ago, he and his team the north-east of England, when we lost manufacturing confirmed that without a package of fiscal austerity jobs, steel jobs, coal jobs and shipbuilding jobs, they measures, this country would be borrowing in the were absorbed into the public sector. Those who worked international markets at a rate 3% higher than we in the public sector created careers for themselves. My currently are. That is the Bank’s official position and hon. Friend the Member for North Durham (Mr Jones) that is why those difficult measures have been taken. made this point: there was a relationship between the public and private sectors. They worked together. Sir Stuart Bell: I am not going to go down the route that the shadow Chancellor of the Exchequer might Mr Stewart Jackson (Peterborough) (Con): The hon. have gone down at one stage of attacking or criticising Gentleman is being most generous in giving way. Can the Governor of the Bank of England. That would not he explain why the Government whom he supported be appropriate for me. The advice that was given to the were running a structural deficit several years before the Government, when they came to government, was very financial crisis? severe and we were compared with Greece. Sir Stuart Bell: We had no difficulty with the structural The hon. Member for Hereford and South Herefordshire deficit because we believed in infrastructure projects. (Jesse Norman) makes an interesting point. At what We believed in public-private initiatives and off-balance point in our history did we turn over our economy to sheet finance, which was exactly the same as what the the rating agencies instead of saying, “It’s only the Germans were doing. At the time, it was thought a fine rating agencies”. When the rating agencies call the way of doing things and it is still a fine way of doing Élysée palace, they have a fit of panic there, asking, things. In my constituency, we got the first public-private “You’re not going to reduce our rating are you?” Why initiative in the James Cook university hospital, so we did we, as a nation state, give our economy over to a have nothing to regret about what is now called the rating agency—to Fitch, Moody’s or Standard and structural deficit. As I said earlier, the structural deficit Poor’s? Where was the Chancellor of the Exchequer is like any other, it is part and parcel of the fullest who stood up and said, “No, I am not going to do objective. The right hon. Member for Wokingham that”? The rating agencies had accepted the Labour (Mr Redwood) was right to say that, while we are Government’s deficit reduction plan and were at ease tackling that particular deficit, public expenditure in with it. They were happy with the four-year programme other areas is going up. We need to get the balance and it was the current Government who fell back to the right, but that is not happening at the moment. age of Lord Lamont and John Major, whom my right hon. Friend the Member for Doncaster North (Edward The Chancellor said that we had moved from fourth Miliband) has mentioned, and ideas such as, “If it’s not in the league of competitiveness to 12th and made a big hurting it’s not working”. thing about competitiveness, but he did not mention the eurozone, not surprisingly. He did not mention the David Morris (Morecambe and Lunesdale) (Con): conference tomorrow and the day after when the Does the hon. Gentleman agree that when John Major 17 members of the eurozone will get together to create a left office, he left us with no deficit, unlike the previous competitiveness pact. Why are they doing that? Because Government? they wish to increase their growth and exports, and we are in competition with them. We are in competition with Germany and France and we will be in competition Sir Stuart Bell: That is not true and could not possibly with those other countries. be true. The Chancellor talked about Greece, Portugal and I have just referred to the fact that we borrowed Spain, but why does the fourth-largest economy in the £11 billion in February alone. My point in relation to world have to compare itself with Greece, which has a Lord Lamont and John Major is that if one takes every deficit of 150% against gross domestic product, not the aspect of the Government’s policy on competitiveness, 60% or 50% we are talking about? Why does our nation growth, unemployment and inflation, one sees that they state have to be compared with a small country such as are falling back to where they were in the years between Greece? On that basis, we had £67 billion-worth of 1979 and 1983 and into 1992. So, it seems that the deficit reduction in one Budget. Today, the Chancellor public sector and the welfare state do not count for was very gracious in saying that, now he has taken all much and that what counts is balancing the budget. I that money out of the economy, he will not take any am surprised that the hon. Member for Chichester did more out. He might have said, “I’ll do you all a favour: not go one stage further and say that in five years we I’ve hit you on the head with one big hammer, so I’m might adopt the German approach of balancing the not coming back with another.” How gracious of him budget completely. to destabilise, within the space of nine months, our I do not want to hold up the House for much longer, economy. That is what he has done and is continuing to but I want to mention my constituency and say to the do. He will certainly rebalance the economy—away Chancellor that we are very grateful that we have an from the welfare state, the public sector and the work enterprise zone and a local enterprise partnership for force of our country—and he will weaken the fabric of Tees valley and that we will work closely with the our country. He will weaken the standard of living of Government on both of them. The mothballing of all our people. Redcar steel mill has been reversed and there is a new buyer taking it over. On Teesside, we will look to the Jesse Norman: It is not the Chancellor who has Budget, the LEP, the new enterprise zone and the new associated our economy with those of Portugal, Ireland, steel mill, which will create jobs and bring in £600 million Greece and Spain, but the international markets. When in investment. So, despite the cutbacks and the impact 979 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 980 Situation Situation on local councils, the future is bright for Teesside. I am borrow money for public purposes—are much closer to happy to be confident in that future, notwithstanding those in Germany than those in many other countries in all the blows that we will take over the next four years. Europe. They are under half the level of those in troubled Portugal. The Portuguese 10-year rates went 2.17 pm above 8% today. I stress to beleaguered Portuguese Mr John Redwood (Wokingham) (Con): I remind the parliamentarians, who are battling over whether a general House that I offer industrial business advice to a Swedish, election is the answer to their problems, that if they do quoted international industrial group and investment not take dire and immediate action, their country simply advice to a British investment company. will not be able to borrow at an affordable rate of interest. They cannot go on spending the extra 10% of Some Opposition Members have expressed displeasure national income that we are spending, which is borrowed, that Government Members should have mentioned the to tide us through and get us to better-managed times. circumstances in Greece and Portugal. The Opposition rightly remind us that we have a much bigger economy My right hon. Friend the Chancellor, having set out a than those of Greece and Portugal and I am pleased to pathway for tackling the deficit, was right to turn to the say that ours is also currently better managed. Those question of how he can accelerate growth. The truth of points are important because our public deficit was the five-year deficit programme is simple: we need well- larger even than theirs, as a proportion of national above-average growth in the last three or four years of income, when the big deficit reduction programme started. the programme to deliver the numbers in the Red Book, I praise my right hon. Friend the Chancellor for seeing which are similar to those in the Chancellor’s first that his single, central task, day in, day out, month in, edition of the Red Book last summer. month out, year in, year out—indeed, the five-year To remind the House of the scale of the task, the burden for all of us in the House—is to get that deficit Government plan to spend £70 billion a year more, in down before it kills our public finances and our economy. cash terms, in the fifth year of the plan—2014-15—than If anyone thinks there is no risk, I invite them to visit in the last Labour year; that is not a big increase, but Greece, Portugal or Ireland and see what happens when there will be pressures because of it. They plan to get a country ignores a deficit for the best of reasons and the deficit down by increasing the tax revenue collected says, “I do want to spend a little more on a good public in the last year of the plan to an eye-watering £175 billion cause so I will borrow it to spend it.” Of course, we all more than in the last Labour year. We believe that we have great causes on which we would like to spend more have seen all the important tax rate rises that the Chancellor money. Borrowing is so often the easy option, but when thinks are needed to do that; the rest depends on the a country gets to the point at which it is borrowing too above-average growth that is still in the official forecasts much, it does not just destroy the general economy and of the Office for Budget Responsibility. place too big a burden on those who have to pay the taxes and interest charges—in the end, it brings down Mr Love: As I understand it, the right hon. Gentleman the public sector as well, with far bigger cuts and far less is laying out why we need a credible reduction in our favourable choices than we have when we take matters deficit in the light of the likely market reaction, but is he into our own hands by planning a steady deficit reduction. not concerned about the impact that any austerity We are debating, in a relatively civilised atmosphere programme might have? Although there has been only a and in a relatively sane and sensible way, an economic limited impact so far in the United Kingdom, as in position about which there are strong disagreements. Greece and as is likely in Ireland, it may be too much, However, there is no overall disagreement about the too soon. imperative to avoid big rises in bond rates and interest rates and to get on with some kind of deficit reduction. It is particularly poignant that we are having this debate Mr Redwood: That is absolutely right. The policies on the same day that the Portuguese Parliament is that Ireland, Greece and Portugal are being driven to meeting to discuss not its first, second or third, but may well not work because they are excessive, but that is fourth package of emergency, deep, damaging public the result of going into the euro and following the spending cuts and unaffordable tax increases. Such is market pressures that that inevitably produces. I see the plight that its economy has been driven into by some Labour Members trying to pretend that that is reckless overspending and too much borrowing and, of nothing to do with them, or looking the other way. I course, by being in the euro area. remember being a pretty lonely figure in the ’90s when I said that we should never join the euro. I am pleased Jesse Norman: Does my right hon. Friend agree that that my party now seems to be very broadly of that to answer the question of the hon. Member for view, and I believe that the other two principal parties Middlesbrough (Sir Stuart Bell), who asked when the in the House have come round to the view that we rating agencies took over, one need go no further back certainly should not join the euro any time yet, but we than 1949, 1969, and 1976 to 1979, when there were have still to receive apologies from them. Surely they runs on the foreign exchange markets under Labour must now accept that if Britain had been driven into the Governments? euro, as they wanted, we would have broken the euro and broken ourselves. The euro could scarcely contain Mr Redwood: My hon. Friend is quite right, but the small economies the size of Greece, Portugal and Ireland, Labour party could point to one or two examples under with their amount of debt; it certainly could not have Conservative Governments, so I do not want to be contained Britain comfortably with the level of debt drawn too far down that historical path. We can see that the previous Government started to incur. It would what we need to see by looking at the modern reality. As have found the British banks over-mighty subjects, just my right hon. Friend the Chancellor said, fortunately, as it is finding the Spanish banks rather difficult to British bond rates—the rate that we have to pay to tackle. 981 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 982 Situation Situation Sir Stuart Bell: I am glad that the right hon. Gentleman Where I have had answers to my questions on this added the words “any time yet” to his remarks about subject, I have found that the current rate of natural joining the euro, because it is inevitable that, over many wastage of staff in core Departments is running at years, we will join the euro. Tomorrow and the day after, about 6% per annum; it was about 4% in the first eight 17 euro states will get together and put forward a proper months. Quite a number of those posts have been filled plan for competitiveness within the euro. For the first by taking on new people from outside. I urge my friends time in our history, the United Kingdom is excluded. on the Front Bench to get more of a grip on that, Mr Redwood: If those countries come up with good because the easiest way of reducing the administrative ideas, we can adopt them, and if they come up with bad overhead on the scale that they want—the least painful ideas, we would be wise to sidestep them; that is exactly way for their staff, who need their morale to be up—is the freedom that I and others have argued for passionately to not replace people who leave and not to make others over many years, and that the Government wish to redundant. We cannot afford the redundancies. If we enjoy if all goes well. make greater use of natural wastage, Ministers can say to their staff that it means better opportunities for The hon. Gentleman also said that the reductions promotion and a change of job. If the post vacated is could prove difficult. Believe it or not, I did not become not essential, it should be removed; if it is essential, we a Member of Parliament to have teachers sacked from should appoint someone from inside and remove some my schools or doctors sacked from my surgeries; I want other, less important, post. That surely is the civilised, them to be well paid and well funded, and I want sensible way to tackle the necessary task of cutting the sensible growth in numbers where there is extra demand. administrative overhead. If the Government can cut We are all of that view—it is quite misleading of the their administrative overhead by the very large 30% that Opposition to suggest that some of us do not appreciate they are talking about, it takes the pressure off cuts in that and do not want that for our constituents—but it the areas where none of us wish to see them—in the has to be affordable. It has to be within the power of the schools and hospitals, the front-line services that matter free enterprise part of the economy to pay for that out so much. of reasonable taxation in a way that does not damage our growth; that is so important. The question that I was about to ask before the interventions was about the international context. How The Government have managed to find an extra easy is it going to be for the Government to have the £70 billion of cash spending for the fifth year of the three or four years of above-average growth which are plan, compared with in the start year. It is crucial that so crucial to the strategy? I must warn those on the we keep public sector costs down, so that the maximum Front Bench that I fear that the world background will amount possible can go to improving service and quality, get more difficult going into 2012 and 2013 than it is at and, in some cases, to improving the amount of service, present. There has been a prolonged boom in the emerging and the minimum goes on extra costs and extra market world, and we now see China, India and Brazil inefficiencies. All parties will say in office that they want lifting their interest rates to very high levels. They are more efficiently run public services, but they have to will desperately trying to squeeze inflation out of their not only the end but the means. That is why the reforms system, so in a year or so we must anticipate some on which the Government are embarking are so important. fall-off in demand and spending power growth rates in It is crucial that the Government listen, and that sensible those big emerging market economies. criticisms be taken on board, but public services have to be reformed so that we can say to people in five years’ The United States economy will have a good year this time, “You are getting more for that £70 billion. We year, by the looks of it, on the back of a lot of money haven’t had to cut things that really matter, because we printing, low interest rates and other matters. That have managed things better and have found a bit of comes to an end in the middle of this year, so by next extra money.” year we will see a slower rate of growth in the United States of America as well. Were the situation in the Jesse Norman: Is my right hon. Friend aware of the middle east to get worse, and the damage from politics enormous interest in the private finance initiative community to spread into oilfields outside Libya, we could have in reform of the PFI? A succession of chief executives another unpleasant external shock on the oil price, of PFI companies have asked me, “Why can we not be which would also serve to impede the growth of the allowed to save money?” The reason is the enormously world economy. expensive procurement process. Not a single school has The conclusion that I take from this is that the world been built recently that does not have an atrium, and economy does not look as though it is going to go back that is because it has been decided that schools, which into another deep recession—we are not going to have have nothing to do with corporations, must have corporate that kind of impossible situation—but the world economy atriums. Nothing could be sillier or more resistant to is not going to provide the impetus that it is currently good Government spending. providing. It may not feel that great, but it is providing Mr Redwood: My hon. Friend is quite right. Improving quite a bit of impetus at the moment. It will provide less the quality and cost-effectiveness of our purchasing is impetus next year and beyond. That means that the crucial in Government. There are many opportunities; Chancellor must intensify his pursuit of measures that PFI and public-private partnerships provide some good make the UK that much more competitive and that examples, but so does general purchase. It would speed much more successful. up the deficit reduction if there were a stronger moratorium on purchasing items and supplies where there are already Andrea Leadsom (South Northamptonshire) (Con): stocks. Any company undertaking the kind of radical Will my right hon. Friend comment on the importance turnaround that the country is trying to achieve would of improving our export position vis-à-vis the BRIC immediately freeze all unnecessary purchases and make countries in particular—Brazil, Russia, India and China— people run stocks down to save money. and how important a part that could play in our recovery? 983 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 984 Situation Situation Mr Redwood: It is a good point. We have heard where we have an advantage and can have a much figures from the Government indicating that we export bigger advantage if we do more. Yes, we need to review less to the BRIC countries combined than we do to how easy it is to buy or build a factory and how easy it is Ireland, but we have a close relationship with Ireland to equip it. Anything that can be done to lower the and we are close neighbours. It is understandable that effect of tax rate on business will make Britain a much we export a lot to Ireland and it to us. That figure conceals more attractive place to be. one important point, which is that British business has As hon. Members know, I take the view that if we set probably been a little more active than it suggests, but lower rates, we normally collect a lot more revenue. If for various reasons the larger British companies tend to we want that kind of growth rate, the lower the realistic go into India, Brazil and China and set up joint ventures rate that we can set, the more revenue growth and the or factories of their own there to service the local market. more overall growth we will have. It would be a great It is easier to service those markets in that way, for reasons tragedy to abort the recovery in certain sectors because that we need not go into in detail today, but I agree that the tax rate was too high. I am pleased to see the it would be good if we exported more, and it would be progress on corporation tax. We need to see the details good if we helped small and medium-sized enterprises of some of the individual tax schemes and how the that do not have the capability to set up factories on the carbon tax rebate would work. If we went ahead as other side of the world to export in their turn. trailblazers in Britain and set a high carbon price, we The devaluation that happened more than a year ago would price our energy-intensive business out of Britain has given us one nasty result, which is a much higher into a less clean or less acceptable venue. It is important inflation rate than comparable economies, but it has that the rebates and discounts are properly thought given us one pleasant result, which is that it is very easy through, so that at a time when the Government are to export out of a British base now because British trying to promote more industry, they are not taxing it industry is so much more competitive at the current too heavily. level of the pound. We should have that on our side. Paradoxically, quite a bit of British business in the Margot James (Stourbridge) (Con): On the manufacturing sector is close to capacity, and those competitiveness of British industry, my right hon. Friend businesses are tending to put the prices up a bit to has in the past talked of a cut in regulation being collect a little more revenue and improve their balance equivalent to a free tax cut. Does he welcome the sheets because it is not that easy to expand turnover. measures in the Budget to have a low level of regulation That is where the things that the Chancellor is talking for new start-up companies and small companies? Does about are vital and need to be done speedily. he share my hope that Europe will become more competitive by reducing the regulatory burden that it seeks to impose Britain needs to be able to put up factories more on British business and business in other member states? quickly and get them into use more quickly. It needs to define the skilled engineers and the other skilled individuals Mr Redwood: Of course I welcome that. One of the who want to work in an industrial setting rather than in big barriers to entry and to more effective competition an advisory or City setting, and then expand the capability for the large companies in Britain is the weight of of their companies as a result. Modern manufacturing regulation, which hits anyone who tries to start up a requires a very high degree of skills input, talented new business. I have done it in the past and I know what people and good management. It does not require so it feels like. One has to raise a lot more extra money many people to operate machines because really good because for six months to a year one is just trying to manufacturing now is highly automated. It needs the comply in many areas before one can trade. Yes, of precision of expensive machinery. Indeed, the easiest course we want sensible regulation. We do not believe in way to compete out of a German or a British base is to an unregulated world. We believe in the law of contract. have highly automated plant, so labour costs are a We believe that people should have a duty of care rather unimportant part of the total cost. The intellectual towards their staff and their customers, but if there are property content, the skill content and the plant and too many and too detailed competing types of prescriptive equipment content are much higher, but they are affordable regulation, it puts people off and they say, “It’s too with a quality product. expensive. I can’t be bothered.” Mr Graham Stuart (Beverley and Holderness) (Con): Geraint Davies (Swansea West) (Lab/Co-op): But does Further to my right hon. Friend’s points, a director the right hon. Gentleman agree that the issue for small from JCB gave evidence to the Select Committee on business today is not so much regulation as liquidity Education yesterday and said that he had 57 vacancies and lending to SMEs by the banks? A constituent of for engineers that he cannot fill order to ensure that mine, Alun Richards, is on hunger strike. He had a JCB’s products remain globally competitive, reduce energy business with net assets and a limited amount of debt, usage and so on. That, unfortunately, is a legacy of too and Lloyds bank came along and withdrew the debt. many years in which we have not delivered the technical, Now he is going bankrupt because he has no working vocational, practical education that is required. Is my capital. Does the right hon. Gentleman agree that that right hon. Friend, like me, enthusiastic about the is disgraceful, particularly from a bank that is owned by Government taking forward the programme from the the taxpayer? Poor old Alun Richards wants to run his Wolf review and supporting Lord Baker with his university business, not to be undermined by the banks. What are technical colleges? the Government doing about that? Mr Redwood: I am happy with those proposals. The Mr Redwood: Of course I agree that if there is a Government are clearly on the right lines and I hope solvent and enterprising business and it is not getting there will be cross-party agreement that we need to raise proper banking facilities, that is very bad indeed. It is our game at skills, training and education, particularly particularly bad if it is a state-owned or state-influenced in engineering, pharmaceuticals, chemistry and so forth, bank that is responsible. 985 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 986 Situation Situation [Mr Redwood] has laid out for promoting growth; and whether there is a happy and sensible resolution to the banking problems My final points are about banking, as time presses as they affect SMEs and the wider public in Britain. and many others want to speak. Of equal importance to There has been much discussion of the big banks, the the weighty matters covered by the Chancellor today investment banks and all those sorts of issues, but we will be the Vickers report and the Government’s response now need to laser in on how the banks serve local to it. I believe that we will have interim conclusions communities and the SME sector. We need a more from Sir John Vickers on 11 April. We are not going to pro-competitive answer. I have some thoughts on how have fast, sustained, above-average growth in this country we could do that, but will not detain the House with unless we sort out the banks a little more than we have them because today is not the day for that. However, done so far. All colleagues in the House are united in without such measures the Budget will find it difficult having individual cases where they feel a company to deliver the very large figures for increased revenue on could have been saved or could have grown more rapidly which the whole plan rests. if only there had been more sympathetic or understanding bank managers and facilities. There is a problem with 2.43 pm British banking serving the SME sector town by town, county by county. There is a lot of talent in the banks, Sammy Wilson (East Antrim) (DUP): I appreciate concentrated at the national level and in the big national being called so early in the debate, Mr Deputy Speaker. accounts. Many hon. Members like to knock those In Northern Ireland we are in competition with neither people, but they made an important contribution to the the Conservative party, nor the Liberal Democrats when growth rate under the previous Government and to our it comes to elections, so I suppose I can afford to be a economy. little more objective in my assessment of the Budget. As we know, the allies of the Conservative party in Northern Andrea Leadsom: In the last quarter of 2010, lending Ireland have now abandoned them, and the hon. Member to the SME sector dropped by 38% from the last for Belfast East (Naomi Long), who had some association quarter of 2008. One of my big concerns is that this with the Lib Dems, has abandoned them since coming reflects the incredible concentration of SME lending to the House, so I hope that I can be objective on this. among the four or five largest banks, which are responsible The Chancellor made it clear in his speech today that for around 90% of all SME lending. Does my right hon. his ambition for the Budget is that it should promote Friend agree that the work of the Vickers commission growth in the economy, and I wish him well in that. and the Treasury Committee should focus on breaking Coming from a part of the United Kingdom where up the oligopolistic positions of some of those big growth has been most sluggish and, as a result, banks? unemployment is rising faster than in any other part of the UK, I know that success for the Chancellor will Mr Redwood: I certainly hope that when we see the mean success for our economy. It will reduce the deficit Vickers report and have a proper debate on it we will be so that huge resources will not go simply on paying able to find sensible ways of promoting much more interest, put people back into work, increase living competition in the domestic banking market. We need standards and, in the long run, provide funding for vital more competition on the high street for individuals and public services. families and more competition in town centres for SMEs, I wish the Chancellor well in that, but I think it is a which in previous generations probably had better and little ironic that the Budget has been headlined as a more direct relationships with local bank managers, Budget for growth, because one of its major statistical who had a bit more authority to grant loans and make announcements is that growth forecasts have been money available on judgment than is currently the case downgraded once again. Indeed, the Chancellor through the box-ticking, centralised computer systems. optimistically indicated last June, and again in October, that the measures he would undertake would give us Geraint Davies: In that case, and given the last growth of around 2.5% or 2.3%, but in the six months intervention, does the right hon. Gentleman agree that since then we have had a 33% reduction in his forecast. perhaps the Budget should have introduced tax relief or There is a certain degree of irony in that, which is one of tax credits for individuals wanting to invest in SMEs, the reasons I believe that some of the criticisms that because venture capitalists want too high a return and have come from the Opposition about the speed and the banks are failing the small business sector? We want depth of deficit reduction have some merit. I remember an inclusive economy. Surely there should have been that when I used to teach economics I would say that some support for SMEs so that we could all invest in there are always two sides to the economic growth coin. small businesses more effectively. First, there is the question of how to increase the economy’s potential to produce more. If we do not Mr Redwood: That is exactly what the Budget contained. increase potential, once demand goes up, all we get is I think there was a revamped and revised enterprise inflation, or we will suck in imports. investment scheme and an improvement in the capital The Chancellor outlined a number of measures today—I gains treatment for successful entrepreneurs. It is always will not go through them all—some of which are nice for new people setting up small businesses to be contradictory. The measure that he held out as the able to dream, and why should those of them who are beacon at the start of his speech was the decrease in successful not keep the proceeds if they have created corporation tax, which he argued will give firms the jobs and done so much? ability to keep more profits and, therefore, the opportunity The outcome of the Budget will depend on two to invest in new equipment, new markets or research important considerations: whether we can put enough and development. According to the Red Book, the measures in place along the lines that the Chancellor decrease in corporation tax should put £1.075 billion 987 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 988 Situation Situation into the coffers of companies over the next five years, so Mr Kevan Jones: In 2009-10, the budget for the nine it could certainly be argued that the Chancellor has regional development agencies in the UK was £2.2 billion. released resources for companies to invest if they choose to do so. Sammy Wilson: That probably puts it all in perspective. However, on the next page we see that, as a result of The measure looks good in the Chancellor’s speech, wanting to be a trendy green, or I suspect of looking for but, when one looks at the resources that it releases, a stealth tax, he is imposing a carbon floor price. By which in turn are supposed to increase the willingness 2015, all the additional revenue that firms will have of firms to invest and the productive potential of the from the decrease in corporation tax will be more than economy, one sees just how miniscule it is, and we have absorbed in the carbon price floor tax—£1.41 billion. to judge whether it will make a very great impact. On the surface, the measure appears to be a way of releasing resources to companies, but closer examination Mr Nigel Dodds (Belfast North) (DUP): My hon. shows that companies will not be much better equipped. Friend speaks with great expertise as the Minister for Finance in Northern Ireland, and I congratulated him Stephen Williams (Bristol West) (LD): Will the hon. on the production of his budget there just a few weeks Gentleman concede that the whole purpose of a carbon ago. Does he share my concern at the response from the tax is to incentivise firms to change their behaviour so Secretary of State for Northern Ireland, during Northern that those that do change their behaviour by producing Ireland questions? When asked about the enterprise goods more sustainably will pay less carbon tax and zone and the real substantive changes, he said that it benefit from reduced corporation tax and those that do was really a phrase he had been using to “cover”—that not will pay more? is the word he used—the idea of Northern Ireland being more open for business in relation to corporation Sammy Wilson: That is clearly not what the Chancellor tax. Does my hon. Friend share my concern that, in intends, because he hopes to raise £1.4 billion. If the Northern Ireland, there might not be much substance hon. Gentleman is saying that this is all about changing to that phrase? behaviour so that firms do not get the money, there is an immediate hole in the figures the Chancellor is presenting Sammy Wilson: My fear is that, not just in Northern to the House today. I suspect that it is not all about that Ireland but throughout the United Kingdom, the measure at all, but is another way of raising tax. What appears will be more like a branding exercise and good for a on the surface to be a good supply-side measure will be soundbite, rather than something that will have any real more than offset by some of the other measures undertaken. impact. I hope that the measure has an impact, but, if I Of course, the kinds of firms that are most likely to be look at the amount of resources that will go into the hit by this are the very firms that the Chancellor says he zones, and at what really is required to lift such areas, I wishes to promote: those in manufacturing industry. fear that it will not. The service industry will not be hit by those measures as Other changes have been mentioned, such as those to much as manufacturing will, and, given Northern Ireland’s the tax structure, and I noted what the Chancellor said, reliance on gas and oil to fuel and power manufacturing but some of them might not include extensive industry, and the fact that our energy costs are already consultation—the issue is complex—and might be years higher than in other parts of the United Kingdom, that away. So, again, they look good in the Budget, but what will gravely disadvantage manufacturing firms in Northern is the immediate impact going to be? Ireland, at the very time when the Executive in Northern Ireland is trying to rebalance the economy. Helen Goodman (Bishop Auckland) (Lab): On that point, it is interesting to look at the changes to national Sajid Javid (Bromsgrove) (Con): The hon. Gentleman insurance contributions, which are forecast to have an started his speech by saying that he would provide a impact right out to 2016, because they show that the more objective analysis, and I was excited by that. proposed bringing together of the two taxes—national In that vein, does he accept that the Chancellor’s insurance and income tax—will not happen for at least announcement that, for the first time, as a major departure five years. from corporation tax policy, he would consider a separate tax rate for Northern Ireland, making the whole Province Sammy Wilson: I hope I am not quoting the Chancellor an enterprise zone, is very welcome and could help with wrongly, but I think he talked about nine years in the some of the things that the hon. Gentleman is pointing future before those changes have an impact, so again we out? have to ask, “What is the impact going to be?”

Sammy Wilson: I wish to come to that point later, but Dr William McCrea (South Antrim) (DUP): Does I hope the hon. Gentleman will accept that my comments my hon. Friend agree that the Chancellor missed a vital so far, at least, have been objective, because they are opportunity for the Northern Ireland economy today? based on the figures that the Chancellor has provided. Does my hon. Friend think it right that a £7.5 billion The Chancellor talked about another measure today loan from the British Exchequer to the Government of for encouraging growth, the enterprise zones that the the Irish Republic should be used to enable that Government hon. Gentleman mentions. When we look at the figures to abolish air passenger duty, which in turn gives them in the Red Book, however, we find that in the first year, an unprecedented competitive edge on flights, bearing 21 enterprise zones will eventually be in place but the in mind that it impacts on my constituency and the money made available to businesses as a result of tax international airport in it? exemption will amount to £20 million. By the final year, the figure will be £80 million, and I do not know Sammy Wilson: I am a bit miffed, because I wanted whether £4 million in each zone will generate a great to use that point later in my speech, so I will have to deal in additional output. scribble it out. When we look at some of the issues, 989 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 990 Situation Situation [Sammy Wilson] period. We cannot simply rely on the assurances that the OBR has looked at the figures and thinks they are whether they are the delays, the amount of money being okay, as there could well be a revision. I am merely put in, the offsetting of increases in taxation when some pointing to some aspects within the Budget document tax cuts have been made, the regulations or the consultation that give me cause for concern as to whether these that has still to take place with Europe to see whether growth figures can be achieved. If they cannot, there we can reduce red tape, we have to ask whether the are implications for the deficit, for employment, for predictions for future growth based on the supply-side living standards, and for the ability to provide public measures in the Budget are as fragile as the autumn services in future. predictions that were wiped out by a fall of snow. If that Let me turn to some of the measures that apply to is how fragile the predictions are, then I have concerns. Northern Ireland. As we heard in an earlier intervention, There is another side to the coin, because not only do tomorrow morning an announcement will be made we have to increase the productive potential of the about the corporation tax proposals for Northern Ireland. economy, but people must be willing to purchase the I am waiting to see that. I have no doubt that the ability goods that can be produced, and aggregate demand can of the Northern Ireland Administration to reduce be made up of several different factors. The Government corporation tax could be a useful lever. As a Unionist—I have already ruled out one for very good reasons, and I know that the hon. Member for Dundee East (Stewart accept that the deficit has to be reduced. I may have Hosie) will probably be totally appalled that anyone some issues about how quickly it is being reduced, but from a devolved Administration should say this—I do the one thing we do know is that Government spending not want to see huge fiscal powers devolved to Northern is not going to take up the slack that already exists in Ireland. I am part of the United Kingdom, I want to the economy. remain part of the United Kingdom, and I wish fiscal Consumer spending is not going to take up the slack, powers to stay part of the United Kingdom. either, because the Chancellor made it quite clear that There has been a groundswell of opinion for some he would not make any tax giveaways. Indeed, if one variation in corporation tax; indeed, the Secretary of looks at what he said about the indexation of direct State for Northern Ireland has been very enthusiastic taxes, one finds that he has now built automatic increases about it. However, there is no point in devolving corporation into the tax system for the next four years. There will tax if the price tag attached is such that it savages public not be discretion on a year-to-year basis; inflationary expenditure, which has already suffered a huge cut as a increases are now built into the tax system. result of the Budget decisions made last October. There That leaves investment demand and exports, and it would be a gestation period between a reduction in seems that the Chancellor is emphasising the role of corporation tax and the impact on jobs on the ground, exports. Given that over the past year and a half the whereas any cut in public spending or in the block grant exchange rate has fallen by 20%, our export growth is would take immediate effect. There would be no increase still one of the weakest among the OECD countries. in private sector employment, together with an immediate Investment might improve competitiveness, but the only decrease in public sector employment, and that cannot direct measure that the Chancellor has produced today be good for economic recovery. is the export credit guarantee. I have quickly looked I fear that the figures in the document that we have through the Red Book to see how much the guarantee tomorrow will be neither a fair reflection of the cost of involves, and I cannot get a figure, but that is the only devolving corporation tax to Northern Ireland nor the measure to increase the one component of aggregate kind of opportunity and offer that would be attractive demand on which the Chancellor is relying to improve to the Northern Ireland Administration. We will want growth in the economy. to see that the Treasury and the Government have not If we look at the supply-side measures and the lack of made a savage reduction in the block grant even though demand-side measures, we have to ask, “Can we really it bears no relation to what the real cost of devolving be confident that this is a Budget for growth?” The corporation tax might be. conclusion that I come to—not because I want to take a pot-shot at the Government, but because I want to get Mr Dodds: Does my hon. Friend agree that there is a in behind the figures to see whether the hope being held supreme irony in the fact that as part of the conditions out is genuine—is that I am left with some concerns. for the bail-out of the Irish Republic—£6 billion of UK Mr Graham Stuart: The hon. Gentleman is right to taxpayers’ money—the Irish Republic insisted that its be sombre because of the situation the country is in. corporation tax rate would stay at 12.5%, yet Northern The Chancellor mentioned what is happening in other Ireland, which, uniquely within the United Kingdom, is countries, and we are in a fragile position because of the in direct competition with the Irish Republic, would be appalling inheritance. The growth predictions, however, allowed to reduce its corporation tax but would not are no longer the predictions of a politician; they are receive any similar subsidy from the UK Treasury, the predictions of the OBR. We are in a very fragile whereas the subsidy is going directly to the Irish Republic? state, and it is no wonder that predictions change, but the prediction is that over this Parliament this country’s Sammy Wilson: We can see how the bail-out of the growth will be higher than the EU average. That, considering Irish Republic conflicts with what is happening in Northern where we started, would not mean golden times, but it Ireland. My hon. Friend the Member for South Antrim would be a solid achievement. (Dr McCrea) mentioned air passenger duty. I am disappointed about this because the Chancellor could Sammy Wilson: Of course, the earlier growth figures have done something about it. In particular, the one were also OBR-ified, if one wants to use that term, yet flight between Northern Ireland and North America is they did not prove to be realisable over a six-month very important in attracting not only tourists but inward 991 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 992 Situation Situation investment. A sum of £2.1 million would have ensured England. That was a retrograde step, and I am glad that that that flight continues, yet the Chancellor did not the current Government are reviewing it. Before we hit find that he could allow for regional variation. There trouble, the deficit was 3%, whereas the German economy are precedents for that because regional variations are had a surplus of 3%. The difference that we can see allowed for Scotland. The irony is that the Irish today is that the Germans have a deficit of 5% or 6%, Government, using the £7.5 billion that was obtained while we have one of nearer to 10%. That means that from the United Kingdom, are now going to abolish air the adjustments we will have to make over the next four passenger duty, which places them at an even more or five years will be much more difficult, and it will take positive advantage regarding the service that flies from longer to get there. Northern Ireland. Mr Kevan Jones: I accept the hon. Gentleman’s point Mark Durkan (Foyle) (SDLP): Will the hon. Gentleman about bank regulation, but he has a very short memory, acknowledge that the Irish Government had made the because I remember being in this House when the decision about air passenger duty before any loan facility current Chancellor and Prime Minister were calling for was agreed with the UK Government—and I stress that more light-touch regulation of the financial industry, it is a loan facility? not for more regulation, as they seem to be doing now.

Sammy Wilson: I find it strange that the hon. Gentleman Mr Syms: It was nothing to do with light-touch should want to apologise for the Irish Republic, which regulation; in fact, we needed more competent regulation. is in direct competition with the economy of the area The Financial Services Authority was not up to the job, that he represents, but we will leave it to his constituents and the Bank of England would have done a better one. to question him about that. The key thing is that we now have a great imbalance The Chancellor has made much of the fuel duty in our economy. Over the long term, Britain has always escalator. Northern Ireland does not have the highest tended to have public spending of about 40% of GDP, fuel prices in the United Kingdom, but certainly the taxation of about 40% of GDP, and a national debt of second highest, and we also have the problem of the about 40% of GDP. We have always managed to grow border with the Irish Republic. I would have hoped that and export, and to be a fairly successful economy. We the Chancellor would come through on the promise now have to yank public spending and the deficit back that he made when he was in opposition. We have a to those sorts of levels. As was pointed out earlier in the promise that future price increases will be deferred, but debate, even after five or six years, we will only be back the impact on current prices will be very slight. That down to where we were towards the end of the Labour leaves Northern Ireland, with its high dependence on Government when we had to go into deficit to deal with road transport for its manufactured goods and its dispersed the difficult economic situation. rural nature, at a disadvantage. I think that the Government’s response is sensible. It I acknowledge that the Government have responded is planned over five or six years, and is gradual. For all to some developments recently. I look forward to seeing the talk of expenditure cuts, the expenditure cuts will be the outcome of the aggregates levy and the allowance gradual over that period. The plan, as the Chancellor that has been made. I welcome the fact that the loan set out today, is for the economy to grow. That should facility for the Presbyterian Mutual Society has been generate more tax revenue. The difficulty, of course, is built into the Budget. In his concluding remarks, the that we will have to raise taxation, as can be seen in the Chancellor said that he would put the fuel in the tank of plans, to help balance the budget. I hope that that is the British economy so that it could drive forward. I more of a short term, rather than a medium to long may be about to show my age, but I hope that it is a tiger term thing, because we need to build incentives back in the tank so that we finish up with a tiger economy. I into the British economy. fear that we are going to run out of fuel very quickly, and we will all be poorer for it. Helen Goodman: On that point, has the hon. Gentleman not noticed that table 2.1 on page 42 of the Red Book shows that, over that period, personal tax allowances 3.7 pm will increase substantially, because the switch to CPI Mr Robert Syms (Poole) (Con): I should like to draw and the changes to national insurance outweigh Members’ attention to my declaration in the Register of significantly—by several hundred million pounds—the Members’ Financial Interests in case I stray into the increase in personal allowances that the Chancellor subject of property or something similar. made? This is a tax-raising Budget; not a neutral Budget as he said. The situation at the end of the previous Government’s time in office was unprecedented in international terms. Mr Syms: The key fact is that the Government whom The way that they handled things in their last 18 months the hon. Lady supported left us with massive debts. was not too bad. They went down to 0.5% interest rates, There is no honest or honourable way in which we can allowed the automatic stabilisers to come in, and allowed deal with that problem, other than taking tough decisions, the pound to devalue, as we could because we still which will involve many of our constituents paying control our own monetary policy. Everything possible considerably more money. Over the next five years, was done to adjust to the dire situation in the banking unfortunately, more money will come in through taxation. system. There is no way around that. That is the legacy that To be less complimentary, the regulatory regime that Labour has left us. If we want to be responsible, to get allowed the banks to do some of the things that they did the economy back into balance and to have long-term was set by the former Prime Minister when he was economic growth, we have no choice but to take tough Chancellor by taking powers away from the Bank of measures. 993 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 994 Situation Situation Richard Fuller (Bedford) (Con): Does my hon. Friend I should explain that as a Member for Aberdeen, the agree that the previous Government were the worst economy of my constituency is based on the offshore villains in fiscal drag that this country has ever seen? oil and gas industry. I should also explain that I am the They failed to raise thresholds year after year, and chair of the all-party group on the offshore oil and gas dragged many taxpayers into higher income tax brackets. industry. Aberdeen has survived the downturn probably better than anywhere else, because the oil industry has Mr Syms: My hon. Friend makes a good point. I been fairly buoyant. Unemployment in my constituency welcome what the Chancellor has done with the personal has risen from only 1.9% to 2.5%. I appreciate that that allowance and the £10,000 target. If a central part of will sound very good to many Members. I fear that the Government’s plans is welfare reform, it is inevitable because of the rabbit that the Chancellor pulled out of that we must reduce the tax on the lowest-paid. Otherwise, his hat, that may not continue. we will not get people off welfare and into work, which I speak, of course, about the fair fuel stabiliser. I I think is what all of us want. think that that has the potential to destabilise the offshore I will touch on one or two measures, but I do not oil and gas industry quite dramatically. I appreciate that want to take up too much time. I welcome the Government’s the Chancellor was looking for something so that he plans to assist the housing market. I wish they had gone could bring down fuel prices. However, it appears from farther, because there is a lot of capacity in the housing the Red Book that huge amounts of money will come market, which could provide more jobs and help to get from the North sea. Apart from in the financial year the economy going. However, what the Chancellor 2011-12, in which the amount that will be given back to announced was very good. the taxpayer is £1.9 billion and only £1.78 billion will I welcome the Chancellor’s proposals on charities. come in from the North sea from the increase in the Poole has one of the biggest charities in the UK, the supplementary charge, in every other year more will be Royal National Lifeboat Institution, which raises a raised by the Exchequer from the North sea oil and gas considerable amount of money from bequests. People industry than the Chancellor will give away by bringing getting relief on inheritance tax will be a major boost to down petrol prices. that charity and to many others. Helen Goodman: I also noticed that very interesting I welcome the move back to enterprise zones, because line in table 2.1—line 28. It shows that the proposed we have to become an enterprise economy. One lesson revenue stream is the same in every year. However, as of the last decade is that we do not want to rely on an the Chancellor said, that will depend on what the oil overheated south-east and London. We must ensure price is. Unless he is absolutely confident that the oil price that future growth is balanced so that it occurs in will remain at the same level throughout the period, greater Birmingham, Manchester, Leeds and many of these are completely unfounded forecasts and estimates. our great provincial cities. What the Chancellor announced will assist in that. Dame Anne Begg: Indeed, if the oil price goes up, the The Government are doing what they can to help amount that the Chancellor gets will go up. These must people, with limited room for manoeuvre, by putting off at best be guesstimates. Therein lies the problem for the the fuel duty rises and freezing council tax. We have a offshore industry. The North sea is a mature province, difficult inheritance and the Chancellor has precious but there is still a lot of oil left. In fact, there are little room for manoeuvre. He started his Budget probably as many known oil reserves in the North sea speech by saying that this is basically a neutral Budget. I today as there were in the 1970s, but they are much think that it is right to have a neutral Budget. In some harder to reach and more challenging to get out of the respects, it would be better not to have a Budget at all, ground. The one thing that the offshore oil and gas but to just let the long-term plans of the Government industry needs is stability—stability in what the Chancellor roll on. That gives the best hope of getting the is going to do. The last time the tax revenues for the economy sorted, and of restoring growth to the British offshore industry were changed, by the last Labour economy. Government, there was a slowdown in the industry for a We have heard debate about the OBR forecasts. They good two years before it recovered. The industry complained are forecasts and will change several times before we about the unexpected nature of that change and the fact know what the situation is. I think that we have an that it was not able to plan for it. This change comes excellent chance over the next four or five years to get into effect from 12 o’clock tonight, so it will come as a growth. I think that the Government’s strategy is right. huge shock to the offshore sector that it will be affected. They are concentrating on training and simplifying the tax code. Hopefully, when we can, we will start to Mr Kevan Jones: Does my hon. Friend recognise, reduce the rates. given her expertise on the oil industry, that investment in exploration is long term? In some of the fields that she is talking about, planning and investment can take 3.14 pm up to 10 years. A fluctuating oil price will make such Dame Anne Begg (Aberdeen South) (Lab): At the end decisions very difficult. That will have a direct impact of every Budget speech, the Chancellor has to pull a on Tyneside and Teesside, which are strongly supported rabbit out of the hat. I will begin my remarks on the by the supply industry for North sea oil. rabbit that I was not expecting today. It is something that will affect my constituency. Because I have been Dame Anne Begg: I could not agree more. In fact, I sitting in the Chamber since the Chancellor made his believe that 200 constituencies have 50 jobs or more that speech, I have not been able to quantify exactly how it are directly related to the supply chain of the offshore will affect my constituency, but I have great fears that it industry. The change will come as a big shock out of the might have a devastating effect. blue, and I do not think people are prepared for it. 995 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 996 Situation Situation As my hon. Friend suggests, in its long-term planning, which we did not discover until days afterwards. I am the offshore sector tends to use an oil price of between glad that the Government have backed down on that $50 and $60 a barrel. In other words, it projects a stable and that today’s Red Book shows that money again. oil price in its forward planning. That is clearly not the From a cursory glance at the Red Book, I discover real situation, because sometimes the price dips below something that comes as a bit of a surprise to those of that level and sometimes, as at the moment, it goes up us who were here for Prime Minister’s questions today. to $100 a barrel. The fluctuation of the oil price makes The Leader of the Opposition asked the Prime Minister the sector’s long-term planning difficult, and the Chancellor why the Government were taking the higher-rate mobility has added another factor that will fluctuate, making the component of disability allowance from people living in situation even less stable. To call it a fair fuel stabiliser is residential care. Those who were here will remember a complete misnomer. that the Prime Minister replied, “We are not”—a simple, straightforward answer. However, line d on page 44 of Brandon Lewis (Great Yarmouth) (Con): Like the the Red Book is about the plan to hon. Lady, I represent an area in which the oil and gas “remove mobility components for claimants in residential care industry is prevalent. Does she agree that the measures from April 2013”, that the Chancellor has taken today deal with the with a figure of £155 million to be saved. That is problem that arises when there is effectively a windfall different from the last Red Book, which stated that the for companies because of oil prices? In the long run, the change would come in in 2011-12 and save £135 million. change will be neutral to the taxpayer and the companies All that the Government have done is delayed it by two will not be at a loss. It just deals with what are effectively years. As the Leader of the Opposition pointed out, the windfall profits that they have received because of the change is still in the Welfare Reform Bill, and here it is current high oil prices, to the benefit of the consumer. in the Red Book. Perhaps the Prime Minister might want to come to the Chamber and apologise for not Dame Anne Begg: With all due respect, that is not having been as accurate as he might have been. how the Chancellor has sold it. Even if there has been a windfall, perhaps it would have been better had he given Richard Fuller: For clarification, has the hon. Lady some warning of the change so that people in the oil checked the following page, page 45, which mentions industry in particular could have taken account of it in the disability living allowance reform gateway funds, their planning. which will kick in at £360 million in 2013-14 and rise to When we look at the Red Book, we see that the £1.45 billion? How does that match the figures that she change is not tax-neutral. It states that by 2012-13, the has given, if at all? tax raised will be £2.2 billion, and that it will be £2.1 billion the following year. The Chancellor is expecting to raise Dame Anne Begg: They do not match, because they more than £2 billion a year—a much larger amount are totally different things. In fact, the Prime Minister than is being given back to the consumer who buys did not quite understand that. The DLA gateway is petrol at the pump. Line 6 on page 42 of the Red Book about tightening up the criteria for those coming on to shows that the Chancellor is taking more from the DLA. That will come in with the introduction of personal offshore oil and gas industry than from the banks, by a independence payments. The reform of the gateway is factor of 10. totally different from taking DLA away from people who live in residential care. By any criteria, such people Helen Goodman: I am grateful to my hon. Friend for would qualify to get through the gateway.The Government being so generous in giving way. The other interesting have decided that they will not get the money because thing in those numbers is that whereas the Chancellor they live in residential care, not because they do not fit claimed that the banks would not benefit from the the criteria. corporation tax change, we can see from the Red Book that corporation tax reliefs will rise over the period in Richard Fuller: I am grateful to the hon. Lady for that question but the bank levy will absolutely collapse. clarification. I am sure she will recognise that there are hon. Members on both sides of the House who share Dame Anne Begg: Indeed, the bank levy will come concern about the continuation of the mobility component down to just £100 million by 2015-16. of DLA. I believe that Ministers are looking for a way The change to the oil and gas charge has come as a to both maintain the mobility component and expand bit of a shock, and it worries me. From looking at the personal payments, so that people with disabilities who Red Book, I am getting more and more worried about live in care homes continue to receive the funding that what the Chancellor has announced today. The Red they require for a decent living. If that is not included in Book states: the Budget, I will be very interested to talk to her about it. “The Supplementary Charge on oil and gas production will therefore increase to 32 per cent from midnight tonight.” Dame Anne Begg: What I have said is based on a There was no warning, and it will have come as a big cursory glance at the Red Book, but the evidence from shock to the industry. The effect could be dramatic in the Welfare Reform Bill, which states that those in my constituency. I only hope that the Chancellor has residential care will not get higher-rate mobility DLA, thought the matter through and had some discussions and from the Red Book makes it appear that the with the industry. I suspect he has not, and I am worried Government still intend to take the mobility element about what will happen. away from such people, albeit two years later. Those of I wonder what other nasties are lurking in the Red us who said that the proposal was unfair thought we Book. Last time it was the 10% sanction on housing had won the battle, but it now appears that we have not benefit when someone had been out of work for a year, won it at all. I am grateful to the hon. Gentleman for his 997 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 998 Situation Situation [Dame Anne Begg] The state pension age is about to go up to 66 for men and women by 2020. This was meant to be a Budget for intervention, because I know that Members of all parties growth, but the very first thing the Chancellor spoke of objected to the proposal. I hope that he will put pressure was the downgrading of the growth figures. I am worried on his Government to reconsider the matter. about where all the jobs will come from given the I wish to say a wee bit about the merging of national increased number of people in the workplace. The insurance and income tax. It was trailed slightly in the numbers in the work force are expected to increase press, but we needed to find out what it meant in reality. because of the new work obligations on jobseeker’s The Chancellor said it would not be the end of the allowance claimants; because lone parents will be expected contributory principle, but it is very hard to see how it to look for work when their youngest child is five; cannot be. There needs to be a debate about the future because 30% of incapacity benefit claimants will be of that principle, because other measures that the assessed as fully fit for work and expected to go into the Government have taken have undermined it. People are workplace; and because another 30% of such claimants quite shocked about what is happening, having paid will end up in the work-related activity group of their national insurance all their lives thinking that they employment support allowance. Huge numbers of people were paying into an insurance scheme and that they are expected to go into the workplace. It is difficult to would get money out of it when something went wrong. get figures on how many more people will be looking People get only six months’ jobseeker’s allowance of for work because the Department for Work and Pensions £65 a week as a result of their NI contributions when could not give them to us, but on top of those, the they are unemployed. Under the Welfare Reform Bill, raising of the state pension age means that even more people will get only one year’s sickness benefit under people will be looking for work. the new employment support allowance as a result of Mr Kevan Jones: The Chancellor trumpeted the extension such contributions. Most people assume that they get of support for mortgage interest, but has my hon. the basic state pension because of their NI contributions. Friend seen page 42 of the Red Book, which says that That is the big one, because people are quite happy to that will continue for 2012-13, but decrease in 2013-14 pay their NI contributions for that, but the Government to £15 million and then to zero in 2014-15? plan to introduce a flat-rate, £140 a week state pension. Such contributions pay for the basic state pension state Dame Anne Begg: I was going to talk about housing, and the earnings-related pension scheme as well as but I could speak for another three hours if I go down that pension credit, and everything then gets divided out. route, so if my hon. Friend will forgive me, I shall resist. Will older people who have not reached state pension It is difficult to see how pensions can be based on a age be in work or not? At the moment, only 30% of men contributory record, as the Red Book says they are, if are still in work aged 65—not only because of early everybody gets the same. The Work and Pensions Secretary retirement and other things, but because people lose said a couple of weeks ago that he will introduce the their jobs towards the end of their working lives—but flat-rate pension, and that that will help women, but it they will be expected to work another year. Only 47% of will do so only if it is not dependent on contributions. women aged 60 are still in work, but they will be The Government cannot have it both ways. Either people expected to work for another six years. Those people get the flat-rate pension based on their working record will not necessarily get anything under the universal and NI contributions, which will be part of income tax, credit, because they will probably have saved a nice little or they get it because they have fulfilled other criteria, nest egg—a nest egg of just over £16,000—to see them such as residency. The country and all parties in the through retirement. They will not get jobseeker’s House need a proper debate on how we fund welfare, allowance—or rather, they might get it for six months, the basis of our welfare system, and the future of the but that is all they will get through the contributory contributory principle. principle. If they have fallen out of work because of ill health, the most that they might get is a year of employment Lorely Burt (Solihull) (LD): The Liberal Democrats support allowance before then getting nothing. Those take pensions very seriously. I acknowledge that a lot of are big figures, and that is where a lot of the welfare consultation and working out must be done, but does reform savings in the Red Book will come from. the hon. Lady welcome a basic state pension of £140 a Indeed, it is perhaps worth alerting the House to the week? fact that the big savings in welfare reform do not come from getting “shirkers” back into work; they come from taking money from those who would normally have got Dame Anne Begg: I advocated a universal or citizens contributory incapacity benefit, but will get now get pension as a Government Member for many years, but only contributory employment and support allowance one strong argument against such a pension is that for a year. That means that around £80 a week will many people are very attached to the contributory come out of those people’s incomes. They will get principle. That came out in the original discussions, nothing else if they live in a household with someone in when the Government of the day decided to reduce the work or with any other source of income, or if they state pension qualifying years down to 30 for both men have a small pension or savings of more £16,000. Therefore, and women. there will be a new group of people struggling, and they Part of the problem in this country is that we have no will not be old-age pensioners; they will be pre-old-age means other than NI contributions by which to determine pensioners, as it were. They are people who have fallen who should qualify for a state pension, because we do out of work, but not been able to work to 66 and get not keep residency records, which is how the judgment their state pension. They have been left with little—in is made in, for instance, New Zealand. The problem in fact, in some cases nothing—from the safety net that we this country is more complex than it may seem. think the welfare state is there to provide. 999 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1000 Situation Situation There is a lot more than I could say; indeed, I am criticise these measures, given that Labour’s contribution sorry that I have spoken for longer than I intended to. was to get rid of the 10p tax rate and import more than Over the coming days I will go through Red Book in a 1 million unskilled, low-wage workers from eastern lot more detail than I have managed to today. However, Europe over 13 years to undercut the pay and conditions from what I have seen already, there is a great deal for of the poorest people in this country? people to be concerned about in what the Chancellor has announced today. Stephen Williams: I well remember sitting on the Opposition Benches during the final Budget of the 3.36 pm right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown), and being one of those who spotted the Stephen Williams (Bristol West) (LD): This is, of fact that the tax cut being given to higher-rate taxpayers course, the second Budget of the Liberal Democrat- and the cut in capital gains tax, which were cheered by Conservative coalition Government. The first Budget Labour Members at the time, were effectively being was put together in the extraordinary circumstances funded by a tax rise for the poorest people in society that followed the 2010 general election, when the two that doubled their rate of income tax from 10p in the parties came together to co-operate in government and pound to 20p. clear up the mess left by the Labour Government. In People are also rightly concerned about their household that Budget we dealt with the emergency, and set out a budgets as a result of high fuel prices. You and I will plan to restore fiscal credibility and put Britain back on know, Madam Deputy Speaker, that it is difficult now track. Today we begin the next phase of this coalition to find petrol or diesel costing less than 130p a litre Government. Over the next four years we will build a anywhere in the city of Bristol. Even the local fuel stable economic future, with growth in our economy station in my constituency is now charging 140p for that is regionally balanced, encourages innovation, and diesel. I therefore welcome the measures to address is green and sustainable. We have moved from the those concerns by reducing fuel duty by 1p and by rescue stage. We are now on to recovery, and we look stopping Labour’s planned further increases, leading to forward to reform. a further 5p reduction in fuel duty. This will be welcomed by people not only in cities, such as those I represent, Sheila Gilmore (Edinburgh East) (Lab): When the but in the rural areas around Britain represented by my hon. Gentleman stood for election last year and his colleagues. leader said that making deep and fast cuts in public services would be dangerous, did he believe it? If he did, Mr Alan Reid (Argyll and Bute) (LD): I also welcome but then came to a different view, what made him the fact that the rate of fuel duty on the islands will be change his mind? cut by 5p a litre, starting from April 2012. That will put an extra £5 million into the economy of our islands. Stephen Williams: I would remind the hon. Lady that we can all be selective with quotations from different Stephen Williams: My hon. Friend is of course referring party leaders or finance spokesmen in the general election. to the derogation from the European Commission that Indeed, we could do that all round the Chamber. I well has been applied for in order to ensure that the coalition remember the leader of my party saying that there Government’s Budget promise is deliverable under would need to be “savage cuts” in public expenditure to Community law, unlike the undeliverable measure to deal with the desperate circumstances that whoever won reduce VAT proposed by Labour. the general election would have to deal with. He was heavily criticised for using the phrase “savage cuts”; Fuel duty is, however, a blunt instrument for taxing none the less, he gave a stark warning that was also the motorist. I welcome the measures put forward today timely and well made. to stabilise the prices in between the oil companies and the consumer, but in the medium term, we must look for Despite those circumstances, we—and in particular a much better way of developing a market mechanism the Liberal Democrats in the coalition—have endeavoured for taxing the use of our roads. to ensure that all the measures that we put in place, whether in the emergency Budget, the spending review A further issue of fairness relates to tax avoidance. or the Budgets to come, are underpinned by fairness. It Whether practised by large companies or by rich individuals, is important that we recognise people’s concerns about tax avoidance is an affront to fairness, when ordinary the cost of living and the pressures on their household people around the country are going out to work, budgets. That is why today Liberal Democrats in particular paying their taxes on time and making their contribution. welcome the further step taken towards our main manifesto It is an affront to them that some companies are using commitment of ensuring that nobody on an income of the tax system unfairly to avoid tax. Some rich people in less than £10,000 should face an income tax bill. From society—including sportsmen whom people admire—are April this year, almost 900,000 people will be taken out also using those schemes. It is therefore right that the of income tax altogether, with all average earners getting Government should take further measures today to a tax cut of £200. In a year’s time, 1.1 million lower-paid close down some of those avoidance schemes and introduce people will be taken out of the income tax net altogether, an increased levy on non-domiciled individuals. leading to a tax cut for everyone on average earnings of Right across the age scale, from pensioners who will £326 a year. This measure will, as we always pledged, benefit from the triple lock, guaranteeing that their help the poor and reward work. pension will go up each year, to children from the poorest families, whose schools will receive the pupil Mr Stewart Jackson: I warmly endorse my hon. Friend’s premium, this Government are delivering for all sectors comments about taking low-paid people out of tax. of society. These are fair measures that meet the concerns Does he agree that it ill behoves the Opposition to of ordinary Britons, the people who, according to the 1001 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1002 Situation Situation [Stephen Williams] capital not of £1 billion, but of £3 billion, to incentivise investment in the low-carbon economy of the future. term that my party leader, the Deputy Prime Minister, The Red Book, quoted so much already, suggests that has recently injected into the political debate, wake up this will leverage into the low-carbon economy a to alarm clock Britain. [Laughter.] I knew people would further £18 billion-worth of investment. Before the end like that, but those are the ordinary families around the of this Parliament, once our finances are stabilised, that country that all hon. Members represent, and we should bank will be able to borrow in order to make further not laugh. They are the people who get up and go out to investments. work. They work hard, they want their children to do well and they want their parents to be secure in old age. Zac Goldsmith (Richmond Park) (Con): Does my Another major element of the Budget, along with hon. Friend share my concern that the downgrading of fairness, is the plan for growth in the green book that the Government’s flagship policy, the green investment has been launched today. It is important that the plan bank, from what should have been and would have been should be regionally balanced. One of the unfortunate a bank able to issue bonds from day one to what legacies of the last Labour Government was the overheated amounts to a fund for the next five years effectively economy in London and the south-east of England, reduces the prospects of our country becoming a world and the credit bubble that, as we know, eventually burst. leader in green innovation? Does he also agree that by We cannot allow that to happen again. This Government failing properly to back our fledgling green economy, are determined that growth should be shared fairly we will find it harder to cut our emissions, harder to right across the nations and regions of the United achieve or boost energy sovereignty and that we will be Kingdom. That is why I particularly welcome the missing out on one of the greatest economic opportunities announcement today of 21 enterprise zones and I look of all time? forward tomorrow to hearing confirmation from the Prime Minister and the Deputy Prime Minister of where Stephen Williams: I am sure that the hon. Gentleman they will be based. I hope that one of them will be in the has been making that case in private to his well-connected Greater Bristol local enterprise partnership. friends. I and my colleagues have also been making the case for a green investment bank, not a green investment Mr Kevan Jones: I suggest that the hon. Gentleman fund. It has been confirmed as a green investment bank read the Red Book. If he looks at the figures for the today and it will have £3 billion of seedcorn capital to local enterprise zones, he will see that they add up to get it off to a flying start. It is going to start a year about £900,000 for each one. That needs to be compared earlier than originally suggested. By the end of this with the funding for the regional development agencies Parliament, it will be able to issue bonds so that if we in the last year of the Labour Government, which was wish, we could all deposit our funds with that bank to more than £2 billion. invest in our green future. Stephen Williams: We will have to wait and see the I also welcome the investment made in innovation detail on the local enterprise zones. What we know from and skills, particularly in technology innovation centres. the detail we have had today is that there will be a year’s I talked a lot in the last Parliament about the skilling of tax holiday from business rates in respect of people our young people and how we needed to get more locating in those zones. They will also be equipped with people to take up apprenticeship places, so the confirmation superfast broadband and, I am sure, other measures of of 50,000 more places today means that there will be support and advice. This issue is bound up with other 250,000 more in this Parliament than we were left by the announcements already made this week about the last Government. technology innovation centres and the Manufacturing Speaking as someone who before entering this House Advisory Service. There is a whole package of measures spent 17 years in a career in the private sector, advising that I suggest the hon. Gentleman looks at. small businesses on how to set up and take off, I welcome the confirmation or enhancement in the Budget Dr Julian Huppert (Cambridge) (LD): Does my hon. of many reliefs designed to help new and innovative Friend agree that the test of how well a Government businesses to take off and the fact that by 2014 we will policy works is not how much money is spent on it, but have the lowest rate of corporate tax in the G7. We now the benefits it has? That is why I hope my hon. Friend look forward to a further period of reform. will join me in welcoming the steps taken to help The hon. Member for Aberdeen South (Dame Anne entrepreneurs and scientific research in areas such as Begg) rightly mentioned the integration of the income Babraham near my constituency. tax and national insurance schemes, on which there is to be consultation after the Budget. It is, of course, Stephen Williams: I thank my hon. Friend for that 100 years since Lloyd George, my political hero, introduced intervention, and he is, of course, quite right. The question the national insurance scheme. During the slump of the from Labour Members when they were in government 1920s, however—this deals with the point made by the was always, “How much money can we possibly spend hon. Lady—the actuarial soundness of that scheme was on this situation?” rather than “What works?”. That is essentially undermined, and ever since then the fiction the difference between this coalition Government and has been maintained by Governments of all hues that Labour. I commend my hon. Friend for the measures he it is a separate fund. In fact, it is a second income tax in has recently published on entrepreneurship. all but name, and the time has come to reform it. I am Another aspect of growth that I want to see in the very glad that the Government are going to do that; and future that we have not had in the past is green and because they are going to consult on how it should be sustainable growth. I particularly support the confirmation done, all the issues raised by the hon. Lady about that a green investment bank will be set up with initial contributions-based benefits are likely to be dealt with. 1003 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1004 Situation Situation The other reform to which I look forward is the move the mess. Today’s Budget sets in train a plan for a to a system based more on sustainability, involving a Britain that is fairer, with a stable economy and a tax on carbon. I am delighted that the Chancellor has low-carbon future. It recognises the need to help households confirmed the introduction of a new carbon floor price. with their budgets now, and to give them confidence On behalf of the Liberal Democrats, I will shortly that the economy and their country are back on track. produce a paper fleshing out how that can work during the rest of the current Parliament. Madam Deputy Speaker (Dawn Primarolo): Before It is disappointing that we have not been able to agree we move on, I have to announce the result of a Division internationally on further taxes on aviation—both coalition deferred from a previous day. On the question relating parties wanted an aeroplane tax rather than air passenger to a stability mechanism for member states whose currency duty—and I hope that international agreement will be is the euro, the Ayes were 310 and the Noes were 29. secured so that that can be achieved. However, I welcome Therefore, the Ayes have it. the confirmation that we are to end the absurd anomaly [The Division list is published at the end of today’s whereby the jets that most of us use when travelling debates.] abroad are subject to air passenger duty while private I shall call Mr Dan Jarvis next, who will be making jets are not. Under the existing law, a plane full of his maiden speech, and I remind hon. Members of the football fans going off to watch their heroes must pay normal courtesies that should be extended when hearing tax, while the team itself takes off in a private plane and a maiden speech. pays none. The measures that have already been outlined, and 3.55 pm the reforms to which we look forward, reward hard work, incentivise enterprise, and make progress towards Dan Jarvis (Barnsley Central) (Lab): I am grateful for a low-carbon economy. the opportunity to make my maiden speech in this Let me finally deal with the issue of the banks. I Budget debate. The first time I remember feeling like welcome the fact that the Government have introduced this was when I was being summoned by an RAF a levy that will be permanent, throughout the life of this instructor to make my first parachute jump—a leap of Parliament. It has been confirmed today that the banks faith into the unknown. Today, however, as I rise to will not benefit from the reduction in corporation tax, make my maiden speech in this Chamber, I am reassured and that the levy will be increased in future. We shall by knowing that the hon. Members who have gone have to wait for the results of the Vickers review to find before me—most of them—have landed without incurring out whether there are proposals to break up the banks. permanent injury. The people of Barnsley Central have a long history of Helen Goodman: How can the hon. Gentleman say electing good people to serve as their Member of what he has just said about the banks, given that the Parliament. Only time will tell whether I extend that bank levy is falling from £600 million to £100 million record, but it is a great privilege to pay tribute to my within three years? That is patently ridiculous. predecessors. It is truly humbling to think that I follow in the footsteps of the former Barnsley MP, Roy Mason, Stephen Williams (Bristol West) (LD): I understand a coal miner at the age of 14. Lord Mason went on to that the bank levy is about £2.5 billion a year. The serve the town as its MP for 34 years. During that time, Chancellor announced recently that the levy, which was he served in a number of Governments and held a £1.8 billion in its first year, would be increased to number of high offices. £2.5 billion, and today it has been confirmed that the I also have the great privilege of representing wards banks will not benefit from the reduction in corporation that were previously in the Barnsley, West and Penistone tax and that the levy will be increased. constituency. Before being abolished, the constituency Another issue connected with the banks is what we was represented by the formidable Michael Clapham. should do with our ownership, as taxpayers, of Lloyds As an MP, Mick did tremendous work to support other Banking Group and the Royal Bank of Scotland. That former miners, securing compensation for those who is an issue with which the Government will have to deal had been injured through their work and for the families with at some point in the next few years. A couple of of those miners who had been killed. weeks ago I published a pamphlet, with CentreForum, As it was for Roy and Mick, so it was for Barnsley: which suggested that the shares should be given to the coal mining was at the heart of the community. Barnsley people so that the state could recover the £67 billion is a town with a proud history of linen, wire and glass that was invested in the banks bail-out in 2008. The making, but coal mining once accounted for more than citizen should enjoy the upside: the citizen should enjoy 30,000 jobs. It was a community built on coal. In good the growth in those shares in the future. I hope that my times and bad, in war and in peace, places like Barnsley Treasury colleagues will look favourably on that proposal kept this economy and this country going. As is said in as they decide what to do with the legacy from the last Barnsley: “We dug the coal.” Government. I would also like to pay tribute to my immediate The Liberal Democrat-Conservative coalition predecessor, Eric Illsley. It is acknowledged that Eric Government have dealt with Labour’s toxic legacy, but made mistakes—mistakes that cast a shadow across his Labour seems to be still in denial about the problem. good work for the people of Barnsley—but we should They have not acknowledged its existence, let alone not forget that Eric chose to dedicate his life to the shown any sign of contrition for their role in the deficit. betterment of the lives of working people. Like Mick The Leader of the Opposition produced some very and Roy, Eric served the community and spent 10 years good jokes today—I will give him that—but he could at as a National Union of Mineworkers official, including least have made an apology. We have started to clear up during the miners’ strike. Many people have told me 1005 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1006 Situation Situation [Dan Jarvis] VAT on fuel is costing people in Yorkshire £53 million in extra fuel tax this year. The education maintenance that Eric was a very hard-working and conscientious allowance was helping more than 3,500 of Barnsley’s constituency MP with a strong record of supporting young people to afford to stay in education. This September, and representing working men and women in Barnsley. some of the poorest young people going into education Having served two tours in Afghanistan, I was relieved will be £30 a week worse off and, even on the Government’s to fight a—relatively, at least—peaceful by-election own figures, one in 10 of them will drop out of education campaign in Barnsley, but I was ably supported by as a result. some brilliant local campaigners: people like Anita The Government told us that we were out of the Cherryhome and Tracey Cheetham, to name just two danger zone, that their plan was working and that they among the many to whom I owe a great debt of gratitude. should be judged on the figures. Today, inflation is My transition from the Army to civilian life has been rising, partly as a result of the VAT rise, unemployment made a pleasure because of the people of Barnsley and is rising and growth has stalled. Barnsley urgently needs their support. I remember the warmth of the welcome I an alternative: a plan to get jobs and to help families received at the New Lodge working men’s club while feeling the squeeze. The Government could have chosen having a pint with Roy Butterwood, and from the to repeat the bank bonus tax—a tax on those on whose fantastic people working in Barnsley hospital. Both shoulders much of the responsibility for our predicament institutions are, in different ways, at the heart of the should fall. That money could have funded a plan—a community. plan to build houses, to invest in infrastructure and to I met hundreds of amazing people during the by-election, get young people in work—but they chose not take that including teachers, NHS workers, police officers, business approach. The real test of this Budget was whether the owners and volunteers: remarkable people working hard voice of the country had been heard, whether the evidence and achieving remarkable things in Barnsley, in Yorkshire had been heeded and whether the Government had and beyond. listened on jobs and on the cost of living. They have My constituents are proud people. People such as failed this test. Len Picken and Jenny Platts are proud of their industrial The previous Labour Government, whatever their heritage, proud of who they are today and proud of faults, did their bit to invest in the future, and their what Barnsley can continue to be in the future. There is investment in education and training was particularly no question that the people of my constituency have the important. In Barnsley, the Building Schools for the energy, skill and dedication to make our community a Future project has successfully provided new schools better place. The question today is whether Barnsley’s such as Darton college, the Dearne advanced learning future is safe under this Government or whether it will centre and the Carlton community college, with six be savaged by spending cuts and by a failure to protect more in the pipeline, to sit alongside the inspirational jobs and opportunities for the young, as it was in the Barnsley college, rated as “outstanding” in Ofsted’s last 1980s. inspection. The people of Barnsley were looking for today’s Budget to pass two clear tests. Did it deliver for families My service in the Parachute Regiment has taught me who are finding times hard as pay freezes hit, world that so much can be achieved when people are given the prices rise and the VAT increase takes up to £450 a year right tools, the right skills and the right training—when out of a family’s household spending; and did it demonstrate they are given the support and funding to be the best. I that the Government have a plan to generate jobs and know from fighting in Iraq and Afghanistan that the the growth that would create jobs? The Barnsley of men and women of our armed forces are the best. I have today, after more than a decade of investment and had the privilege of serving with some amazing people, reform to our public services and our infrastructure, is but, above all, it has been a pleasure to serve with the not the Barnsley of the 1980s. Barnsley and our country soldiers and NCOs—the backbone of our armed forces. can and should thrive. Indeed, a year ago, growth in this Today, I particularly remember Corporal Bryan Budd country was rising, and unemployment and inflation VC and Corporal Mark Wright GC, both of the Parachute were falling. We had hoped that the mistakes of the past Regiment, who lost their lives while serving our country were forgotten and that communities such as Barnsley with the most outstanding valour. I pay the highest would not be abandoned as they were then, leaving a tribute to them and to all those men and women who generation scarred. have fallen in the pursuit of maintaining the security of our country. We must never forget their families who The 1980s and 1990s were a dark chapter for the are left behind to grieve, but it is not enough just to town, as the then Government closed down the mines praise the armed forces. They must be supported with which were the heart and soul of our community and the best training and equipment, and the military covenant stood back and let unemployment and misery linger for is not an optional extra but an essential piece of kit. a generation. In recent years, Councillor Steve Houghton, the outstanding leader of Barnsley council, was instrumental The strategic defence and security review may come in working with the Department for Work and Pensions to be remembered as the Fox review, but only in the in devising the future jobs fund, which helped more future will we know whether it is as cunning as its name than 600 people find jobs in Barnsley. But the future might suggest or if it is, as Professor Paul Cornish states jobs fund ends this month and Barnsley is facing some in his recent Chatham House report, merely an attempt of the deepest cuts in the country. The council has to to “muddle through”. This is no time to muddle through. find £26 million this year and £46 million in total, and Clear policy and decisive action are a must, and we jobs will inevitably be lost. The truth is that today South must move the debate on to determining the desired Yorkshire police are losing 400 police officers and facing strategic outputs rather than merely considering defence deeper cuts than many other forces. The increase in inputs. 1007 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1008 Situation Situation Although there is rightly much focus on Libya and has absolutely cheesed off the Opposition. I am getting events in the middle east, in Afghanistan the efforts of sick to death with Members on the Conservative and, our armed forces are nothing short of heroic, and they dare I say, Liberal Benches being castigated for the are buying space and time for the Afghan Government, absolute mess that the country is in. One party alone is but the question remains of how we should use that responsible for that—Labour. It is because of the Labour time. In the end, the true measure of progress is how far party that we are facing debt interest of £120 million a Afghanistan has advanced towards a political settlement day and because of the Labour party that we have the capable of providing enduring stability, because that is biggest structural debt in the G7. the safest way of securing both our interests and those I want to share with colleagues who were elected last of the Afghans. We and our American allies should not year what the past 13 years have been like. As hon. wait to push forward a serious dialogue for reconciliation. Members will know, the last Prime Minister was previously Ultimately, politics is always the solution. Whatever the the Chancellor of the Exchequer. I had the experience progress with that effort, it is critical to address not only of listening to 10 of his Budgets, which he greatly the external and regional elements of the conflict, but enjoyed delivering. He used to come to the Dispatch its internal cause: the issues of legitimacy, the rule of Box and two thirds of the way through his speech he law and grievance that push people to support the would wind Conservative Members up. Then he would Taliban and to which my right hon. Friend the Member make what he thought would be the headline-grabbing for East Renfrewshire (Mr Murphy)referred in his recent news item that would cheer everyone up. But then we speech to the Royal United Services Institute. would all go away and people would read the Red Book I must thank hon. Members on both sides of the and within a few weeks we would find out that what he House who, through their advice and kindness, have had told us was not in any sense accurate. So I congratulate ensured my safe landing in this place. It is with my the Chancellor on the new Red Book, because unlike deepest thanks to them that I now feel a little more able the previous one it is not big enough to use as a to live up to my old regimental motto, “Utrinque paratus”, doorstop, which is all that one was fit for. or “Ready for anything”. Labour Members seem to think that Government Finally, if I have learnt nothing else during the by-election Members relish making cuts. campaign, I have learnt this: the spirit and aspiration of the people of Barnsley cannot be trodden down and I, Mr Kevan Jones: You do! as their Member of Parliament, will do all I can to stand up for them. It is their hard work, their pride in Mr Amess: We do not, and I find it hypocritical that themselves and their compassion for others that makes although Labour Members used to speak about cuts me so very proud to represent them here today. before the general election—I can only talk about those who were here before the election—we no longer hear 4.7 pm about the cuts they were going to make. It is as though Mr David Amess (Southend West) (Con): It is an the Conservatives and Liberals rejoice in making cuts. honour and privilege to follow any maiden speech, but If anyone wants to know why the country is in a mess, I it is particularly so in this case. I know I speak for the can tell them it is because the Labour party took away whole House when I congratulate the hon. Member for regulation from the Bank of England and gave it to an Barnsley Central (Dan Jarvis) on a magnificent organisation that was not fit for purpose. Also, as one performance. He spoke with command, it was a measured of my colleagues said during Prime Minister’s questions, speech and in every sense—whether it was the humorous Labour stupidly sold off our gold reserves. side or the remarks he made about his predecessors—it I will go further: in all his Budgets the then Chancellor was an absolute example of how an hon. Member of the Exchequer would make announcements about should make a maiden speech. When I made my maiden spending in terms not of millions but billions, and we in speech at the end of 1983, it was an ordeal not only for opposition used to wonder how it could be funded. We me but for the House that had to listen to me. now know that it could not be funded and that we were The hon. Gentleman performed splendidly. I also spending money we never had. I will never forgive Tony held his predecessor in high regard as a parliamentarian Blair—[Interruption.] Hon. Members might huff and and I much regret the way he left this House. Colleagues puff, but I am entitled to say this because it was Tony listening to the hon. Gentleman’s speech will have come Blair who got me to vote for the war in Iraq and I will to the conclusion that he brings unique experience to never forgive him for having told us a pack of lies at the this place that will greatly enrich our deliberations in Dispatch Box. the future. I certainly would not willingly jump out of an aeroplane, you would have to push me and that Madam Deputy Speaker (Dawn Primarolo): Order. I would be the end of it. I speak for the whole House—I know that the hon. Gentleman feels very passionately do not think we get much Conservative support in about the subject, but perhaps he would like to temper Barnsley Central—when I wish him a long and successful his language and, in particular, withdraw the accusation career. of lying. Turning to the Budget, there is no doubt that this has been the most difficult and gloomy time I have known Mr Amess: I entirely accept your ruling, Madam for people in business—until today. I congratulate my Deputy Speaker. I thought we could make remarks right hon. Friend the Chancellor on his well-crafted about people who were no longer Members of Parliament. and clever Budget, which will cheer up the country. It has already cheered up Government Members and, as Madam Deputy Speaker: The hon. Gentleman can colleagues will have observed from the general atmosphere make remarks about people who are not Members of among Opposition Members three or four hours ago, it Parliament. I am touching on his language, and the 1009 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1010 Situation Situation [Madam Deputy Speaker] I am absolutely delighted that we are looking at how we deal with income tax and national insurance. I am convention in this House on the moderate use of language delighted about the cut in corporation tax. I am absolutely and on allegations against people who are unable to delighted with what we are doing about fuel duty; one correct what has been said. could see from Labour Members’ glum faces that they were very disappointed with that. I am glad that in the Mr Amess: I hope that Tony Blair will correct what I east of England, 106,000 people are being taken out of have said when he again gives evidence, but I blame him a tax band, and I am very pleased with what has for the way he completely misled the country on any happened about gift aid. number of issues. Not the least part of his lasting legacy is the fact that he destroyed the House of Commons, I hope that Conservative Members will become a because this is certainly not the place that I entered in little more robust when Opposition Members have the 1983. I further blame the last Prime Minister, who was temerity to castigate them after nine months for the Chancellor of the Exchequer. New Labour Members mess that the country is. Conservative and Liberal come into the Chamber and castigate Government Democrat Members are looking at the party that is Members for what is going on; what on earth were they entirely responsible for meltdown Britain. I congratulate standing for in the general election campaign in May? the Chancellor on his Budget today and on cheering up the country. Mr Kevan Jones: Having listened to the hon. Gentleman’s speech, I wish he was in an aeroplane so that we could 4.20 pm push him out. He feels that he has been duped on Iraq and on spending, but why, then, did he and the leader of Stewart Hosie (Dundee East) (SNP): I would love to his party say right up to 2008, including in a speech by say that it was a pleasure to follow the hon. Member for the leader of his party in July 2008 to the CBI conference, Southend West (Mr Amess), but instead I will restrict that the Conservatives would match the Labour myself to saying that I agree with him entirely that the Government’s spending? hon. Member for Barnsley Central (Dan Jarvis) made a very good maiden speech indeed. It is certainly a pleasure Mr Amess: I believe that the only commitment that to follow him, if not the hon. Member for Southend we gave was to match spending on the health service. West. [Interruption.] The Economic Secretary to the Treasury says from a sedentary position that that is Kate Green (Stretford and Urmston) (Lab): I wanted harsh. It is only a little harsh. to check whether the hon. Gentleman’s position of not relishing cuts—I am sure that he does not relish them— The Budget was billed as a Budget for growth, and by reflects the position of his party generally, given that goodness, we need it, so let us test that. In his statement the Chair of the Treasury Committee said this morning and in the Red Book the Chancellor gave us a great deal that he believed that public spending should be reduced, of information. Our national debt for 2010-11 was even if we were not in deficit. expected last year to be £932 billion. It is now forecast to be £909 billion for that year. It was expected to be Mr Amess: I was not at the Select Committee this £1.6 trillion next year, but it is coming in at £1.46 trillion. morning—[Interruption.] I am afraid that I missed the The deficit was expected to be £149 billion for last year. speech that my hon. Friend the Member for Chichester That seems to be coming in at £146 billion. But the (Mr Tyrie) made on the Budget. I will have to discuss figure for 2011-12 was forecast to be £116 billion and the issue with him later. that is now up to £122 billion, if the numbers are to be believed. That tells us that the Chancellor may have had Mr Stewart Jackson: Does my hon. Friend not agree a little room for manoeuvre, but growth is essential if that it takes an enormous degree of mismanagement the figures are to remain on target and if we are to have and incompetence, after 12 years of economic growth, any chance at all of protecting jobs and services. to leave 5 million people on out-of-work benefits, languishing in a half-life on the edge of society? That is I welcome the direction of travel on corporation tax the legacy of the Labour Government. but, because the Budget was so thin and fiscally neutral—the entire Budget barely shifted £10 million in total—it Mr Amess: Of course I agree with my hon. Friend, effectively confirms that the cuts, which were forecast but I would just say that if Labour Members feel that last year at £99 billion and revised down to £81 billion they were absolutely spot on in their judgment on the in the comprehensive spending review, are still there. It economy, why was Labour not re-elected last year? We confirms that £29 billion of tax rises announced last had a general election last year, and the Conservative year are effectively still there. It confirms the swingeing party was overwhelmingly the largest party returned; in benefit cuts of £11 billion announced last year and any case, the Labour party was defeated. I am afraid confirmed in the CSR. It also confirms the changes in that the Labour party’s reaction to the Budget today—they some of the pension component, particularly the RPI-CPI were absolutely cheesed off—says it all. switch, which will yield the Exchequer £1.2 billion this Before the Budget, I had representations from all year, rising to nearly £6 billion in 2014-15. manner of organisations, including the Association On pensions, the Chancellor spoke about a single-tier for Consultancy and Engineering and others in a pension. That is similar to the citizens pension concept conglomeration of engineering companies, and Essex that many of us support, but to deliver that with savings chambers of commerce. I have to say that the Budget predicated on changing not just the state pension, but was much brighter and more positive than I expected, all public sector pensions, which are contracted and so whatever demands have been made, I think that the paid into, in some cases, for many, many years, cannot Chancellor has met them completely. I am delighted be right. He also said in relation to pensions that he that at long last something is being done about regulation. would accept all the Hutton recommendations. It may 1011 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1012 Situation Situation well be that all of us have to save a little more a little quickly on the issue. I would have thought that the longer for the pension that we expect at the end, but let Chancellor had much more to say today about how the the Government be in no doubt that a 3% hike in banking community would increase even gross lending pension contributions now will put some of our to businesses across the country. Instead, although he constituents—indeed, many of our constituents—in serious did increase enterprise investment scheme limits to financial difficulties in the short term. I hope that the encourage private investment, which I welcome, he said implementation of that is carefully considered. nothing about bank lending. It is the retail banks on the On PFI—the Labour party’s worst legacy—the figures high street that most of our small businesses depend are truly frightening. The value of the capital projects is upon for both capital and cash flow. some £56 billion. The cost of the outstanding repayment The two key issues of oil and access to finance are not liability is £214 billion. The average repayment each just about economic recovery, but about fairness, as is year until 2047-48 will be £6 billion, and that will peak alcohol duty, and there were a few changes on that at more than £9 billion in 2017-18. The Chancellor said today. However, the Government brought forward no nothing about that, or about how we would replace the measure whatsoever to tax alcoholic drinks by alcohol PFI system. Throughout his speech he spoke of encouraging content. Whisky is still penalised and we still have the private investment, and some of that is to be welcomed, ludicrous situation where 4% beer is taxed more heavily but he said nothing about how we would replace PFI by than 7.5% cider, which does nothing to promote public means of public capital investment. We know how vital health or address the wider social and economic that is, given that the economic impact multiplier for consequences of excessive drinking. Picking up the tab capital expenditure is 1:1. It is the most significant thing for those costs is estimated to equate to a tax of some we can invest in and, more dangerously, the worse £3.5 billion in Scotland alone. I am surprised that the possible thing we can cut. Chancellor did not use the Budget to take measures to The Chancellor had a great deal to say about oil, deal with that problem. which is not surprising given that the forecast for 2011-12 There are also huge dangers in the Budget, as it shows that the North sea will generate an additional confirms the cut to the Scottish budget and threatens £4 billion. He is right to take immediate action because recovery there. I am sure that the whole House will households and businesses are struggling. The price of welcome the recent reduction in unemployment. The a gallon of petrol in rural Scotland is routinely £6.50, figures for March show that unemployment in Scotland and we know that in the past four or five weeks the price has fallen by 16,000 and employment has risen by 8,000, increase in diesel has added £1,000 to the annual cost of the eighth consecutive reported rise in employment. running a truck. That is unsustainable and inflationary. That is all good news, and we have to drive it forward, I welcome the 1p cut and the fact that the proposed but cutting the Scottish budget, particularly £800 million increase has been stopped, but the Government said from the capital budget, will have a huge impact on the that they had introduced a stabiliser, and I have re-read Scottish Parliament’s ability to drive forward many of his speech any number of times. The stabiliser seems to the initiatives that were making a difference as we came me to suggest that when the barrel price increases it is out of the recession. merely the escalator that is cancelled, leaving the indexed Given the economic backdrop, particularly the fourth rise in place. I always understood that the stabiliser quarter figures for the whole UK and the need to would reduce the duty level when the price rose so that continue to support growth, the Scottish Government we could temper out some of spikes in rising prices. By and, indeed, the UK Government need a Budget that only including the escalator, we do not have a stabiliser supports clear, targeted resources. Given also that the at all and will still see many of the spikes that we have Chancellor had some flexibility, I am surprised that he been trying to smooth out to bring some stability back did not offer up a targeted measure to increase capital into the economy, particularly in the haulage sector. expenditure, because it has the most significant impact The Chancellor said surprisingly little about the banks, of any public spending. so I will go back to what he said in February. He What the Chancellor did talk about was enterprise announced that the banks would lend more, especially zones, of course, and we certainly welcome those as a to small businesses, pay more taxes, bring responsibility concept. They could be used in Moray, for example, and restraint to the sector, pay less in bonuses, be more given the closure of RAF Kinloss, but the Budget transparent and make a greater contribution to the offered little detail beyond suggesting some business regional economy. That is all fine, but in order to thrive rate reductions and streamlined planning measures, both and grow companies need access to affordable and of which the Chancellor rightly said are devolved. For flexible funding, and they need it now. That remains a enterprise zones to work properly, they should revert to huge hurdle for many of our businesses. the old form, which included the significant use of The lack of new lending in particular is continuing to capital resources, but, given that there is only £80 million have an adverse impact on individual companies as well in four years’ time, or £4 million per site, much of which as on the economy as a whole. Business investment, as I suspect will be used to offset business rates for local the Minister knows, will remain some 20% below pre- authorities, it strikes me as inconceivable that the recession levels. Indeed, there was a 0.5% fall in gross Government have planned and prepared for the significant fixed capital formation in the last quarter of 2010, use of capital allowances to deliver their potential. which is extremely worrying, given that this is supposed Mr Kevan Jones: The amount is actually less than to be a business growth and export-driven recovery. that to which the hon. Gentleman refers, because, although All the evidence I have seen highlights the importance page 42 of the Red Book cites £80 million in year four, of expanding sustainable lending. Although we welcome over the period, if we spread the amount across the the lending commitments agreed between the Government 21 proposed enterprise zones, we find that it works out and the banks, it is important to ensure that they move at less than £1 million per zone. 1013 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1014 Situation Situation Stewart Hosie: I am glad that the hon. Gentleman the timing was for its establishment, and he said that he has done the four-year forecast and the average for me, wanted to get it up and running as soon as possible. He but the point is the same: there is very little money in said that he hoped to come forward with proposals on what ought to be an initiative with the potential, at how it was going to be structured between now and least, to deliver some significant economic investment. Christmas and that he would have set aside money to go We need targeted measures, and one measure that the into the bank in the comprehensive spending review. It Chancellor could have introduced today was targeted is therefore hugely depressing that we have to wait help for the computer games industry. A targeted tax another year, until 2012, before it can start to function. break was suggested previously but pulled from the Given the press coverage that I am sure we have all seen, previous Budget. Debates in the Scottish Parliament it looks as though it will be 2015 before it is fully have backed it, and debates in Westminster have had operational. all-party support, but he rejected the idea in 2010 and A further green disappointment is that there was no rejected it today. He did say, however, that he would mention whatsoever of green individual savings accounts—a improve the intellectual property regime and increase key Tory policy to be introduced within two years as a the small companies R and D tax credit, and I look to way of helping savers to benefit from the growth of the understand from the Government at some point whether green economy, because the billions raised from their there is a specific way in which the video games industry sale would fund the state-backed green investment bank. and other growing high-tech industries might access it, Yet it seems that because of objections they are to be and access it in an appropriate way that protects them dropped, choking off a funding stream that would have and grows them in future. channelled an estimated £2 billion a year into green In terms of targeted measures, we also believe that technologies. I do not know if the shutdown of green there was a compelling case for the Scottish Government ISAs is part of a wider move to curtail the potential to be given responsibility for the administration and operations of the green bank before it is even set up, but revenues of the Crown Estate in Scotland, given the it is extremely worrying. Finally on green issues, the focus in Scotland and the UK on driving a low-carbon carbon floor price was mentioned. I understand from economy and the existing responsibilities for marine those who know more about that than I do that it is, in planning and economic development. This Budget provided effect, a secret subsidy to the nuclear industry, which is the Chancellor with the opportunity to indicate that he anything but green. was prepared to do that through Government amendments The Chancellor said that this was a Budget for growth, to the Scotland Bill, but no commitment was made. but growth will be stifled if the banks do not lend, and The Chancellor could also have demonstrated—another if he takes no action on alcohol duty. Growth will be small targeted measure—that he was prepared to adjust restricted by his failure to reassess the cuts in capital the tax treatment of participants and sponsors at the expenditure, and the opportunity of enterprise zones Commonwealth games in Glasgow in 2014 so that there will be squandered without the proper application of was equality of treatment with participants and sponsors capital allowances. Growth sectors such as the games at the Olympic games in 2012. I know that the Scottish industry will be damaged by the refusal to introduce tax Government and others have contacted him on the breaks. Growth in the green economy will be slowed matter, because it is important to the overall success of because of the refusal to release funds from the fossil the 2014 games and to the economic regeneration of the fuel levy, and investment in our green future will be east end of Glasgow, so I am deeply disappointed that, reduced because of delays in setting up the green bank. in a Budget when he had the opportunity to talk about The Chancellor took an hour to shuffle £10 million. It parity of tax treatment, he did not take it. was a profoundly wasted opportunity when he could have done so much more. I know also that, following the abolition of the end-year flexibility agreements with the devolved 4.37 pm Administrations, a new system was to be introduced and the Chancellor intended to set out details in this Joseph Johnson (Orpington) (Con): It is an honour to Budget. They might be tucked away in a document I follow in the slipstream of the new Member for Barnsley have not read, but there was no mention made of that Central (Dan Jarvis), who has executed an elegant at all, or of whether a new end-year cash reserve parachute jump into the Chamber. His forceful and could be established so that end-year flexibility was powerful speech was a reminder of how important it is, maintained in a way that was beneficial not just to the at a time when the country is making ever greater Scottish Administration, but to Wales and to Northern demands on its armed forces, that we hear the voices Ireland. of our servicemen and women from all parts of the The Chancellor spoke a lot about the green economy Chamber. and about several measures that he intends to take, and, Thus far we have touched several times on the critical as the Economic Secretary and the Chancellor know, role that the bond markets are playing in framing the there is still accrued £195 million of fossil fuel levy that budgetary policy of this coalition Government. The only the Scottish Government can use. It ought to be hon. Member for Middlesbrough (Sir Stuart Bell), who released, but under the current rules it cannot without a is no longer in the Chamber, asked when it was that comparable claw-back from the block grant. This was bond markets acquired this pivotal role in our national the opportunity for the Chancellor to release those economic policy making. If I may venture an answer, I funds, but he missed it. think that the views of rating agencies became impossible That is particularly disappointing in relation to the to ignore when towards the middle of the previous announcement about the green investment bank, which decade—before the onset of the financial crisis—the was supposed to be the alternative. In November 2010, British Government in the Treasury Committee, I asked the Chancellor what “lost control of public spending” 1015 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1016 Situation Situation in three key Government Departments: Health, Education I also welcome the Chancellor’s decision to analyse and Defence. Those are not my words or views but closely whether the top rate of tax is yield positive or those of Sir Nicholas Macpherson, the permanent secretary negative for the British economy. It is worth considering of Her Majesty’s Treasury, as expressed in a hearing of whether it is deterring investment, thereby losing us the Public Accounts Committee not so long ago; they more revenue than it is bringing in. A more competitive, are available in the Committee report if people wish to simpler and more stable tax regime is an essential have a look. precondition for growth and will ultimately be better It is also important for the hon. Member for for everybody in this country, rich and poor alike. Middlesbrough to realise that we live in a globalised When countries that had public finances in a comparable financial market, and if one cannot fund one’s borrowing state to ours last May are still fighting off the terrible requirements from captive domestic sources, inevitably spectre of sovereign debt default, it would be terrible one is forced upon the mercies of the international folly to slow the pace of what is widely regarded as a capital markets, and that is exactly where we find ourselves necessary fiscal consolidation. Our policies are under today. intense scrutiny by the international bond markets, to which we are paying £120 million in interest daily. We Mr Kevan Jones: I know that the Conservatives are cannot afford for our borrowing costs to rise, as they peddling the line that we are in hock to foreign banks, have elsewhere. We are paying 3.6% in the gilt markets but does the hon. Gentleman not realise that only about on our staggering public debt. Other countries are 35% of our gilts and debts are held abroad? Greece is paying rates closer to 8% or 9%, and Greece is paying a always held up as the big pariah, and its figure is nearly staggering 12.6%. We simply cannot afford to be 70%. The hon. Gentleman’s argument is frankly complete complacent, as the Governor of the Bank of England nonsense. made clear in a recent hearing of the Treasury Committee, at which he stated firmly that UK gilt rates would rise Joseph Johnson: I thank the hon. Gentleman for that by three percentage points if we backtracked from the elegantly expressed critique. It is a significant proportion course of fiscal consolidation that we have outlined. of our borrowing. It is not the totality, and I never said that it was. However, if our marginal investor, whom we Mr Jones: I wish the hon. Gentleman would do some need to supply that additional pound of borrowing, is homework before he makes accusations, and not just setting the price for our borrowing, that determines the swallow the central office lines on such things. He does rate at which we finance ourselves. It is as simple as not tell the House that less than 20% of our debt needs that. That is straightforward marginal pricing through to be repaid in the next three years, whereas Greece and supply and demand. other countries need to repay 36% or 37% of their debt in the next three years. The idea that we have an instant Mr Jones: Will the hon. Gentleman give way? crisis is wrong. Can he tell me when a UK Government have ever defaulted on a gilt payment? Joseph Johnson: No, I will carry on for a little. In my view, it is only thanks to the resolve and Joseph Johnson: There are problems when a country determination of this Government that we have sufficient has a stock of debt as massive as ours. Even with the credibility with the bond markets to have delivered a Government’s plans for fiscal consolidation, it will not Budget for growth. The Budget includes an acceleration start declining for some years to come. Under the of the plans to cut corporation tax, which will give a much- Labour Government our stock of debt would have needed boost to Britain’s international competitiveness. peaked at about 80% of gross domestic product, but I am particularly pleased by that because at a time when under the current Government’s plans it will peak countries need to compete ever more aggressively to somewhere below 70%—69%, I think I recall. [HON. attract highly skilled labour, the UK is increasingly MEMBERS: “71%.”] Either 69% or 71%. Such a massive being seen not just as a high-tax economy, but as one stock of debt means that every year, we have to refinance with a highly complex and unwieldy tax system. The several hundred billion pounds of Government debt. World Economic Forum’s global competitiveness report Even if it is not all the debt, that is still a very substantial for 2011 ranked the UK tax regime the 95th most amount of money. competitive out of 135 countries—almost at the bottom of the world rankings. That sends out a terrible signal to global business. Richard Fuller: Perhaps my hon. Friend will be interested to read on page 25 of the debt and reserves management The UK tax regime was once viewed as an asset and I report issued today that the gap in the five-year forward am glad that the Government are proceeding with plans rate on debt borrowing is at its highest point for 10 to make it an asset once again. I fully support the years. That reflects the fact that the market is buying Chancellor’s plans to give Britain the most competitive only short-term debt. One of the few assets of this business tax regime of any major western economy, and country that the last Government did not sell down the to reverse our slide down the global competitiveness river was the long-dated debt that we have compared rankings. Already, the coalition Government have reversed with other countries. If we had carried on with their planned increases in payroll taxes and lowered small policies, even that would have been lost as a result of business rates. As we heard from the Chancellor this their profligacy and waste. afternoon, they will accelerate reductions in corporation tax so that by 2014, the rate falls to 23%—the lowest ever rate in this country and the lowest in the G7. That Joseph Johnson: That is a very good point. Markets is something that we should celebrate if we are serious can turn on a dime if they detect backsliding, and that about enterprise and entrepreneurialism in this country. is not what they are getting from this Government. 1017 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1018 Situation Situation Chris Bryant (Rhondda) (Lab): The Conservatives Joseph Johnson: I am not sure which of those many spend all their time suggesting that this is just a national points to focus on. Greece’s economy is of course very problem. The hon. Gentleman cited the possibility of different from ours, and we have a history of repaying our debt being 71% of GDP, but in Germany the figure our creditors in full, on time and when we say we will. is 79%, in France it is 75%, in Italy it is 116% and in We do not want to lose that reputation, which is why it Japan it is 194%. These problems came to every country is so important that the Government stick to their plans in the world, and my right hon. Friend the Member for to bring our public finances back on to a sustainable Kirkcaldy and Cowdenbeath (Mr Brown) was not path. We cannot compromise or jeopardise our standing responsible for all of them. in the international financial markets.

Joseph Johnson: Markets can turn on a dime if they Jacob Rees-Mogg (North East Somerset) (Con): Does detect backsliding. Recovering lost confidence would not the fact that £332 billion needs to be raised on the require much bigger cuts to public spending than the gilt market over the next two years, which at an extra credible ones that the Government have outlined. Evidence 3% would be £9 billion a year of extra interest, show the for that is in abundant supply in countries on the utterly cavalier approach of Opposition Members in periphery of the eurozone. Despite the agreement on their recent interventions? the post-2013 European stability mechanism, concerns about the underlying solvency of the most vulnerable countries—Portugal, Ireland and Greece—are growing. Joseph Johnson: Absolutely—their way of looking at our borrowing requirements is completely irresponsible. Jim Fitzpatrick (Poplar and Limehouse) (Lab): I am To think that we should pay more than £120 million a terribly sorry to interrupt the hon. Gentleman, but will day in interest, which we are currently paying, is utterly he respond later in his speech to the question that my absurd. hon. Friend the Member for Rhondda (Chris Bryant) asked him? Chris Bryant: Incidentally, it is interesting to hear the hon. Member for North East Somerset (Jacob Rees-Mogg) Joseph Johnson: I did not touch on it directly because condemn cavaliers. I thought he was one in the 17th century. the reply is obvious. Yes, other countries have large Many countries whose debt is a higher share of gross debts, but that does not mean that we do not have an domestic product than the UK’s are not cutting anywhere urgent need to reduce the scope of our borrowing and near as fast as we are. Of all 29 major industrialised our national interest payments. countries, only one is cutting faster than us: Greece. Sajid Javid: The hon. Member for Rhondda (Chris Bryant) should recognise that every country’s situation Joseph Johnson: The hon. Gentleman may be a great is different. He mentions Japan, whose debt might be economic expert, but he might find that the world’s about 190% of GDP, but it is also the largest creditor foremost economists and international financial nation in the world. Only about 5% of its total debt organisations, from the International Monetary Fund stock is held by foreign investors. The situation is quite to the OECD—the entire gamut of respected economic different in our case. thought—see this fiscal consolidation as necessary. There is no backsliding, which I applaud. Joseph Johnson: That is an excellent point. Before those interventions, I was saying that Portugal As my right hon. Friend the Member for Wokingham is moving ever closer to becoming the third eurozone (Mr Redwood) said earlier, Portugal’s position is particularly periphery country to need a bail-out. Borrowing costs precarious at the moment because opposition parties are again rising to a new euro-era high in Ireland, which there, much like here, have refused to back the austerity desperately needs eurozone members at tomorrow’s summit measures needed to help the country avoid a bail-out. to reach a political compromise on revised lending That could force Portugal further down the international terms. bail-out route that was first trodden by Greece last By contrast, Britain is a different story, thanks to the spring and then by Ireland at the end of last year. credible policies in the emergency Budget last June and Portugal’s 10-year Government bond yields rose the policies announced in October’s spending review. comfortably above 8% yesterday, for the first time since There is no sign whatever of any funding problems in the start of the crisis, reflecting plunging market confidence the gilts market—quite the opposite—and we must in the resolve of that country’s political class. That prize that achievement. We have saved our triple A cannot be said of the occupants of Nos. 10 and 11 Downing credit rating, which was under threat of downgrade in street. the last months of the previous Government, and kept Mr Kevan Jones: The hon. Gentleman uses Greece, our borrowing costs close to historic lows. but my hon. Friend the Member for Rhondda (Chris The coalition Government have earned the respect of Bryant) makes a very good point: we must look at the international capital markets and have their confidence, countries individually.Our economy is larger than Portugal’s because the combination of a tight fiscal and a loose or Greece’s and completely different in other ways. In monetary policy remains the best chance of avoiding a addition, countries such as those have a tradition of sovereign debt crisis while ensuring acceptable increases being unable to implement fiscal reductions, unlike in GDP. Britain simply could not for long run a budget ours. The basic, simple point is this: £5,000 is a lot to deficit of 11% of GDP—the second highest in the owe for someone earning £10,000, but it is a completely OECD—without taking the unacceptable risk of losing different thing for the hon. Member for Richmond Park the confidence of the bond markets. Almost a year on, (Zac Goldsmith) or other such people to owe that the wisdom of taking decisive action to reduce the risk much. of sovereign debt crisis is obvious to all except perhaps 1019 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1020 Situation Situation Labour Members. Even Gavyn Davies, the Labour- However, it is important that we take an economic supporting economist, conceded in yesterday’s Financial reality check and ask what the Budget will actually Times that getting the deficit down was a “defensible deliver. The key thing—this has been mentioned by decision”. many hon. Members across the Chamber—is that the A debt crisis would have been disastrous for growth growth forecast was down last year, it was down this and unemployment, as many European nations are now year and it is down the year after. The hopes and discovering. Furthermore, unlike those countries, Britain aspirations of all my constituents have been dashed by can, and is, using monetary and exchange rate policy to what has happened since this coalition Government offset the fiscal tightening, as my right hon. Friend the came into power. Member for Wokingham said. I hope that that will keep I want to set this debate in the context of what it the economy recovering. means for my city of Hull. Since last May, £20 million As I have said, all manner of international bodies, has disappeared from Hull’s local economy because of from the IMF to the OECD, are unanimous in urging the coalition’s council cuts. We will see £25 million the Chancellor to stay the fiscal course that he has so leaving the NHS in Hull, while £160 million has already consistently outlined for this country. Yes, real GDP gone because plans for the regeneration project in Orchard growth may have dipped temporarily as consumers’ Park have been axed. Hull’s housing pathfinder funding expenditure has been weakened, and today’s growth has gone. There is zero decent homes funding for the forecasts for 2011 from the Office for Budget Responsibility next three years. Some £21 million has been cut from may be a little lower than we would have liked. However— Hull’s Building Schools for the Future programme, and the university of Hull is getting a 5% funding cut. Alison McGovern (Wirral South) (Lab) rose— There are major cuts to services across the piece in the public sector in Hull, which has a direct impact on the private sector. I fail to understand why the coalition Joseph Johnson: I will continue, if I may. does not see that cutting the public sector to the extent However, business surveys have been much stronger that it is will not help growth, but produce even more than the official data, and the Institute for Fiscal Studies problems. says that the chances of a double-dip recession are no more than 20%. Even Gavyn Davies, the great Labour- Richard Fuller: Does the hon. Lady acknowledge that supporting economist, admits that this figure is the country has record debts, and if so, which public “not high enough to jettison the government’s main strategy, with expenditure cuts would she make? the loss of credibility which that would imply.” Mr Davies is, of course, completely right. Maintaining Diana Johnson: I am concerned that our economy the current policy remains the best bet for Britain in the should grow, and I am trying to set into context— medium to long term, and that is what matters most. Richard Fuller rose—

4.55 pm Diana Johnson: Will the hon. Gentleman just let me Diana Johnson (Kingston upon Hull North) (Lab): finish? I paid him the respect of listening to his question; Let me start by paying tribute to my hon. Friend the I would appreciate it if he would listen to what I have to Member for Barnsley Central (Dan Jarvis) on making say. an excellent maiden speech. He talked about the spirit One way of getting out of the problems that we have and aspiration of the people of Barnsley. I know that he experienced as a result of the bankers’ problems—not will make a very good Member of Parliament and will the Labour Government’s problems, as the hon. Member certainly bring that spirit and aspiration to the House for Southend West (Mr Amess) tried to suggest—is to of Commons. Let me also say what pleasure I took in grow the economy. I am with the coalition Government the election result in Barnsley. Seeing the good people on the need for a growth strategy for the economy, but of Yorkshire give the Liberal Democrats a real pasting— the measures that have been taken so far will not help to they put them in sixth place and made them lose their grow the economy in Hull and the Humber. deposit—was enormously pleasurable. The Chancellor talked about the necessity for growth Richard Fuller: Will the hon. Lady give way? across sectors and across the country. He also said that growth should be properly shared across all parts of the Diana Johnson: No, I want to carry on making the country. I want to talk about growth and the impact on point about why there is a real need in Yorkshire and, in the regions, and particularly the Yorkshire region and particular, the Humber to grow the economy.The measures the sub-region in the Humber. We recently had some that have been taken are not helping. The result of all good news in Hull, which is that Siemens will hopefully that money being taken out of my city is that construction set up a manufacturing site in east Hull to build wind jobs are going and we shall not have the training or the turbines. That will result in about 10,000 jobs, which is apprenticeships that the Chancellor has talked about. excellent news for Hull and the Humber region. Like all For the first time, we have seen compulsory redundancies Members across the House, I want a growing economy, at BAE Systems, a major private sector employer just high-skilled jobs for all the people in this country, and a outside Hull on which many of my constituents rely for well-educated and well-skilled work force. We have a skilled jobs. It is a place where people want to work, but history in Hull, having lost the fishing industry in years private sector jobs are being lost there. gone by, and other historic employment issues that we The abolition of the regional development agency, still need to address, so growth is important for my Yorkshire Forward, is a huge loss to the region and to constituents and my city. the building up of the regional economy. The coalition 1021 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1022 Situation Situation [Diana Johnson] What the Chancellor announced today is a return to the 1980s. As mentioned earlier, the detail on the enterprise has introduced local enterprise partnerships to assist zones is very sketchy and it looks like only limited regeneration. We all agree that we need to regenerate resources will be available to the 21 areas granted this areas such as East Yorkshire and the Humber, and status. Hull, however, is not in the initial 10 announced Yorkshire Forward was doing a very good job of building today, which is very disappointing because Hull and the up the economy. The Government’s answer was to Humber is one area where I would have hoped the remove the RDA and create a regional growth fund. Government would see the need to invest in and support Now, whenever a question is raised about where funding the economy for it to grow. can be accessed, we are told to go to the regional growth fund. The housing pathfinder has been scrapped, and The Financial Secretary to the Treasury (Mr Mark the Prime Minister told my hon. Friend the Member for Hoban): I am delighted that the hon. Lady is so supportive Kingston upon Hull East (Karl Turner) to go to the of our policy on enterprise zones. Perhaps she can regional growth fund for money. It seems to me that the encourage her local LEP to bid in the next round for fund must already have been spent about 100 times one of them to be based in Humber and then to make a over. It is just ridiculous. compelling case for the Humber to benefit from the policy. Alison McGovern: Does my hon. Friend acknowledge, Diana Johnson: With the greatest respect, if the Minister as I do, that the impact of these policies is borne out by had listened to what I said, he would know that the the numbers, as the growth forecasts are downgraded? Conservatives and Liberal Democrats who run the local authorities in my region cannot agree on an LEP, so Diana Johnson: That is absolutely clear. there is not one. There is no procedure whereby anyone can lobby the Government for an enterprise zone. I The proposal for a business-led solution to deal with question what will be delivered for local communities economic growth in the regions appears sensible. In my through an enterprise zone, and I also question how this area, however, local authority politicians on Conservative- policy fits with the localism agenda that the coalition is led East Yorkshire council and Liberal Democrat-led so keen to promote, whereby local areas are supposed to Hull council have been squabbling among themselves. decide for themselves what they want to do and what The business leaders have made it clear that they want a best fits their particular needs. I question the announcement pan-Humber LEP that will bring the economy together today, what it will mean and how it will help areas like on the north and south banks of the Humber. As I said, the Humber. we have had the wonderful announcement from Siemens on the future of renewable energy in our area, but I am also intrigued by this start-up Britain initiative. because of the way in which the local councils in East How is that going to help Yorkshire businesses? How is Riding and Hull are behaving, the business community it going to help businesses in the Hull area? This start-up has been left without an LEP; the Business Secretary business sounds like a roadshow; I understand that the would not agree to one because it did not have the Prime Minister is going to tour around the country with support of the business community. some business leaders. If that is part of the growth strategy, then we have a long way to go. This just shows that the Government’s approach is Is this really a Budget for growth? I am concerned flawed. My area desperately needs economic growth, about some of the announcements that roll back people’s yet it has been left with no LEP and with the council in rights at work. A race to the bottom is not part of a Hull squabbling with the councils on the south bank of sensible progressive growth strategy for our economy. the Humber. We have great potential for growth in the We want high-skill jobs; we want a highly trained work renewable energy sector, but there is no co-ordinating force; and we want people treated properly in the workplace. force. The idea is that LEPs will lead us into the growth Under the Labour Government, we married up social strategy that we all want to see, but that is not going to justice and economic efficiency from 1997 up until happen in my area. 2008, when we had the crisis with the bankers. I am also concerned that women will lose out in this Mr Stewart Jackson: I fear that the hon. Lady might Budget. I was disturbed at Treasury questions yesterday be suffering from selective amnesia. My recollection is when one of my hon. Friends raised the issue of how that, in 13 years of a Labour Government, the per measures taken by the Treasury team were affecting capita public expenditure for the people of Hull was women, only to have it dismissed along the lines of “We significantly higher than for most parts of the UK—it cannot possibly provide that information. We can only was certainly in the top quartile—yet educational drill down to a household level. We can’t be gender attainment, housing, skills and health outcomes were specific.” In this day and age, the Treasury can be all in the bottom quartile. Why does she think that was? gender specific and should come clean on what these measures will mean for women and families. Diana Johnson: I am sure the hon. Gentleman will be Young people in Hull is another important issue. We delighted to know that, because of the additional funding are seeing a lost generation of NEETS—those not in that the Labour Government put in from 1997, huge education, employment or training. The coalition policies strides were made in education in my city, with more to remove education maintenance allowance and treble children achieving at GCSE level and more young people university fees will mean more and more young people going on to college and university. That is important deciding not to get the skills and the education that we because it links into the growth strategy. Unless we have all want them to have. It is a retrograde step when the an educated, skilled work force, employers will not be Government pursue such an agenda against our young attracted into the area. I disagree with the hon. Gentleman. people. 1023 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1024 Situation Situation Mr Sam Gyimah (East Surrey) (Con): I am listening communities. For instance, Hull city council’s early to what the hon. Lady says about young people not years service is being scrapped. We shall have no officers, being given the skills they need and about NEETs. I do no support for our nurseries, and no support for children not know whether she was here earlier this afternoon in nurseries who have special educational needs, because when the Chancellor announced £200 million for 50,000 the early intervention grant that the Government said extra apprenticeships, which are targeted specifically at would cover the cost of children’s centres and support those young people who need training and skills to be for children under five does not do what it says on the able to get on the employment ladder. tin. We shall end up with buildings that are open, with caretakers and receptionists, but with no children in Diana Johnson: Like all hon. Members, I think them. apprenticeships are an excellent idea. Employers in As I have said, the coalition Government’s cuts will Hull, however, will tell anyone that the new criteria that store up a great many problems for the future. They have to be fulfilled to take on an apprentice mean that utter plenty of fine words about the need for early many of the young people cannot get into the workplace. intervention and support for families and communities, They may be with a training provider, but actually but they do not deliver the finance. finding an apprenticeship with a business is proving The Government strike me as a group of deficit very difficult. I do not know where these 250,000 deceivers and growth deniers who are making our country apprenticeships are going to come from. If the Government a less fair and secure place in which to live. Until 2008, can do this, I say “Excellent, we are all supportive,” but the spending commitments of the right hon. Member to be honest, you are in la-la land—[Interruption.]—or, for Tatton (Mr Osborne) matched those of the Labour indeed, in the land of green ginger, which is another Government across the board. Only when the banking very good example. crisis arrived did the then Opposition take a different approach. The Liberal Democrat council in Hull took Mr Deputy Speaker (Mr Nigel Evans): When the hon. the view that the Labour Government should be spending Lady said “you are in la-la land”, she was, of course, far more on Hull, but now Kingston upon Hull council referring to me! is losing 9% of its budget, while Kingston upon Thames is losing 3%. That is not fair. The Chancellor may stand Diana Johnson: I meant no disrespect to you, Mr Deputy up and talk about a fair Budget, but this is not a fair Speaker. Of course, I did not mean that. Budget; neither is it a Budget for growth. Let me bring my remarks to a conclusion. Several hon. Members rose— Mr Marcus Jones (Nuneaton) (Con): The hon. Lady said that employers did not seem to want to take up the Mr Deputy Speaker (Mr Nigel Evans): Order. By offer of apprenticeships. She is entirely wrong. The convention, there are no time limits on speeches on Government’s current scheme, which will generate a Budget day, but many Members still want to take part further 40,000 apprenticeships over the next couple of in the debate. Any Member who speaks at excessive years, is over-subscribed. How can she square that with length—for more than about eight minutes, that is—will what she said? prevent others from contributing. I ask Members please to show some restraint. There will be other opportunities Diana Johnson: With respect to the hon. Gentleman, for them to speak during subsequent Budget debates. that is not what I said. Employers in Hull tell me that the opportunities available to their businesses are limited 5.14 pm because growth is so restricted, and that they therefore cannot take on apprentices. Meanwhile, providers tell Richard Harrington (Watford) (Con): I assure you, me that they bring young people into the training Mr Deputy Speaker, that I will stick to the guidelines centres, but then cannot find the apprenticeship places you have given. In fact, uniquely both in this House and that would enable them to do their training. in life generally, I find that I am speechless after listening to the hon. Member for Kingston upon Hull North There have been a good many academic debates (Diana Johnson). There is a holiday attraction somewhere today about what the Budget means—about bond markets called la-la land. I cannot remember who mentioned it and so forth—but in practical terms, for our constituents but, obviously, it is nothing to do with Kingston upon up and down the country, the real issues are connected Hull North. The picture the hon. Lady painted forgets with the cost of living. The rate of inflation in this who has been in power for the last 13 years and who has country is now the highest in western Europe, people been responsible for a bloated public sector and a are worried about whether they will have jobs in the starved private sector, as well as for unemployment and coming months, and there are problems with fuel duty. I all the other problems that many people, including the am glad that the Government have been able to reduce Chancellor, have spoken about today. fuel duty by 1p, but I find it rather ironic that the Conservatives are not able to challenge the European Matthew Hancock (West Suffolk) (Con): Is my hon. Union on VAT and derogation. Surely this is an opportunity Friend as confused as I am given that the previous for a party that is for ever wanting to take pot shots at speaker started her speech by saying there are new jobs the EU to do something constructive. at Siemens in Hull, thereby showing that manufacturing I believe that the deep cuts that are being made now is expanding under this new Government? will lead to social costs in the long term. It is dreadful that the coalition Government are targeting their cuts at Richard Harrington: My hon. Friend makes a good communities in some of the most deprived areas, and at point, but we heard about Siemens so long ago that it the most deprived and vulnerable groups in those had slipped my mind. 1025 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1026 Situation Situation [Richard Harrington] My next point relates to the availability of skilled staff. Despite the fact that 3.7% of people in Watford—more I shall restrict my comments to my experiences in than 2,000 people—are on jobseeker’s allowance and business of dealing with the economy, and the experiences 700 or 800 young people there are not in education, of my constituents and their businesses in Watford. employment or training, I visit factories and businesses Watford is not dissimilar to Kingston upon Hull. It has that cannot recruit staff of the right calibre every week. significant unemployment and shares all the same problems A few weeks ago, I visited Davin Optronics, a manufacturing as many other parts of the country. Notwithstanding company that uses skilled labour to make lenses—it the Chancellor’s commendable statement today, the most deals with complicated stuff. Its fear was that its work significant factor in encouraging businesses to invest is force were getting older and younger people did not the general macro-economic situation. Therefore, the want to join manufacturing businesses. That is a most important aspects of this Budget and the last fundamental issue and we have to change attitudes. Budget are the measures for reducing the deficit. Helen Goodman: How does the hon. Gentleman reconcile Alison McGovern: The hon. Gentleman is making his that situation with his Government’s policy on tuition speech in his usual eloquent style. Will he comment on fees and the fact that this week children in this country why the growth forecasts have been revised downwards? are being told that they cannot take three sciences at Richard Harrington: The comments that the hon. GCSE because of the cuts to school budgets? Lady somewhat generously applied to my erudition can also be applied to hers. To respond to her question on Richard Harrington: The hon. Lady and I were at growth forecasts, we cannot select one figure and say university at broadly the same time, so we were very that it makes a fundamental difference, because assessments privileged. We could debate tuition fees for hours, but of growth must be made over a period of time. In my no matter what one’s arguments on that, the new regime experience, the most important factor for growth is the has not changed the current situation and we are, thus, confidence people have in the economy, and that will dealing with Labour’s policy on tuition fees at the definitely come about because of the Government’s moment. I would be happy to debate tuition fees with sensible approach, as opposed to the reckless irresponsibility her on another occasion, but the real issue is that we of their predecessor. have young people and older people who are unemployed, and we have vacancies in jobs that people will not go Angie Bray (Ealing Central and Acton) (Con): Is it into. The Government’s efforts on work experience for not the case that in almost every recession that this young people—today’s announcement on that was country has had to fight its way out of, there have been tremendous—and on expanding the apprenticeships scheme choppy times and there has never been a smooth upward are very important, as are the technical universities. I trajectory? It is always the case that some quarters are commend those efforts because we must have a work better than others. force who have the right skills. That is not solely about graduates; it is also about people who are leaving school Richard Harrington: With the possible exception of and are doing apprenticeships and further education the la-la land factor, my hon. Friend is absolutely right. courses. What the Government are doing to help will I want to talk about some specific factors that are change the availability of staff. important to business people, and therefore important to growth. There is a lot of talk about banks and the Mr Kevan Jones: Will the hon. Gentleman give way? availability of capital, and about what the Government should do and what they have not done. Again, I want to comment based on my experiences in the constituency. Richard Harrington: No, I must make progress. The bank lending situation is getting better; there is no I normally agree with everything said by my right doubt about that, as the loans are beginning to come hon. Friend the Member for Wokingham (Mr Redwood), through. In Watford alone, under the enterprise finance who is not in his place, and one might think that, as a guarantee loan scheme, 23 companies have already Conservative Member, I would have an overwhelming borrowed money amounting to £4 million. That is a interest in bureaucracy, labour laws, red tape and obstacles comparatively small sample and it reassures me for the to business and that dealing with those things would be future that this scheme, which is to be expanded, does my top priority. However, important though they are, I work, and that it does so in a comparatively short think that they are secondary to the macro-economic period of time. factors—they are secondary to stability and the feeling It is very fortunate for us that interest rates are low, of confidence. Germany is a classic example of that, but the decisions made by businesses do not change because despite its labour laws and the fact that it has whenfluctuationsareminor,suchas1%upor2%down. lots of regulation, manufacturing industry works well Their decisions do change when the situation reaches a there. So I am very pleased that we are concentrating on ludicrous point; I was once left with a loan on which I the other issues. was paying 2% over base when the base rate was 15%. I am keeping in mind your earlier comments, Mr Deputy Variations such as 1%, 3% or 5% make little difference. Speaker, but I just wish to remind hon. Members Again, what matters is confidence in the economy and that Watford is an average kind of constituency and so confidence that the Chancellor has done the right thing has 3,000 businesses, with eight being roughly the today. So I must encourage what the Government are average number of people employed in them—these are doing on the fundamentals, because people and businesses predominantly small businesses. I believe that this Budget will want to borrow money only when there is confidence will help the long-term confidence for them, despite in the future and confidence that we are doing the right short-term growth forecasts, and so it is a Budget very thing. much for the small business. It is also a Budget for the 1027 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1028 Situation Situation larger business, given the corporation tax measures. as a result of lower growth and higher unemployment. However, more importantly, it is a Budget for ordinary Despite today’s opportunity to think again, however, people and for their prospects. I believe that it is the best the Chancellor will still not accept that plan A is not Budget that we could have, given the mess that the going to plan. Government were left. Although the Chancellor has no plan for growth, his implicit plan B, I think, was looser monetary policy, yet Mr Deputy Speaker (Mr Nigel Evans): I thank the today’s Monetary Policy Committee minutes show a hon. Gentleman for his time restraint. further split over whether to increase rates and yesterday’s inflation data show more pressure for a rate rise. Plan B 5.23 pm is looking as forlorn as plan A, with householders likely Rachel Reeves (Leeds West) (Lab): It is a privilege to to see a mortgage rate rise by the summer. speak in the same debate as my hon. Friend the Member We have heard many times today that the Government for Barnsley Central (Dan Jarvis)—the new Member cannot change course, but that is a fallacy. Jonathan for that constituency—who will be a credit both to his Portes, the new director of the National Institute of constituents and to this House. We should listen carefully Economic and Social Research, recently said that that to his words and his warnings. intransigence Today’s Budget is equally noticeable for what it does “relies on an odd view of market psychology, one that says and does not include, because the Chancellor has not markets have more confidence in governments that never adjust heeded the many warnings showing that the Government’s policy, even when it is sensible…history suggests the opposite: economic policies are not working. Gross domestic that the real hit to credibility comes from sticking to unsustainable product figures for the last quarter of 2010 showed that policies”. our economy contracted by 0.6%. Government Members He is right. Now is the time—more than ever—for the blamed the snow, but it snowed in Germany, yet its Government to rethink their plan, which is sapping jobs economy grew by 0.4%, and it snowed in the United and growth out of the economy. States of America, yet its economy grew by 0.7%. The We need to begin to build the Britain of the future, difference is that we are cutting too fast and too deep because confidence in UK plc requires a belief that we and they are not. have a competitive economy that productively employs Another warning can be found in last week’s its resources, draws on our strengths across the sectors unemployment figures, which showed that unemployment and regions and invests in science, skills, technology is the highest it has been for 17 years and that youth and infrastructure. Today’s Budget, however, does nothing unemployment is the highest on record. The OBR today to foster investment or hope. Although I welcome “The showed that unemployment is set to rise to 8.2% this Plan for Growth”, which has been published today, and year and 8.1% next year—higher than it was even at the the announcements to relieve us of a further increase in height of the recession. House prices continue to fall fuel prices and to provide help for first-time buyers, the and yesterday we learned that the consumer prices Chancellor could and should have done more. index has increased to 4.4% and the retail prices index Most of all, although the Chancellor has said repeatedly to 5.5%. There are many warnings that the Government’s that he will be tough on the banks, page 103 of the Red policies are not working. Book shows that the bank bonus tax brought in £3.5 billion Mr Stewart Jackson: I have a quick question for the in 2010 whereas the bank levy will bring in just £1.9 billion hon. Lady.Why, on the “Daily Politics”show approximately this year. There is no guarantee that the banks will lend three hours ago, was she unable to name one measure in any more to small businesses because the Government this Budget that Labour Front Benchers would vote agreed gross lending targets and no net lending targets. against? No wonder the Treasury spokesperson for the Liberal Democrats in the Lords, Lord Oakeshott, resigned, Rachel Reeves: We would like to vote, for example, on saying that if this was tough action, his name was Bob the bank bonus levy and other components of the Diamond. The Government have washed their hands of Budget. My right hon. Friend the Member for Doncaster any responsibility to help small businesses, which are North (Edward Miliband) set out today that we will being hit hard by the banks’ actions. consider areas of growth in “The Plan for Growth” There are other areas where the Chancellor could green book. There are areas where we want to work have acted today. We need a plan for green jobs and with the Government but also areas where we disagree there is still the potential for Britain to be a world with what they are doing. leader, as my hon. Friend the Member for Kingston Given the warnings I have mentioned, it is hardly upon Hull North (Diana Johnson) pointed out earlier, surprising that the independent OBR has today downgraded in the green technologies of the future, but the market its growth forecast for 2011 to 1.7% and has revised requires certainty and we are losing the initiative to growth for next year to 2.5%. Let us put that in context. countries that are willing to provide it. We need action, Before the Chancellor’s first Budget last year, the OBR not just words, on the green investment bank, yet today predicted growth in 2011 of 2.6%. That forecast has we found out that it will not be fully operational until now been downgraded three times—to 2.3%, 2.1% and 2015. today to 1.7%. Every time the Chancellor gets to the We need regional economic strategies. The regional Dispatch Box, the OBR has to downgrade its growth growth fund is estimated to be 10 times over-subscribed, forecasts. and with a two-thirds cut to regional economic investment, The Opposition will say that the only way to get cities and towns across Britain are missing out on growth back on track is to reduce the deficit, but we opportunities to grow and diversify their economies. We have also seen today that the OBR’s borrowing forecast risk another overheating in London and the south-east is expected to be £44.5 billion higher over this Parliament while the potential powerhouses of the north of England 1029 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1030 Situation Situation [Rachel Reeves] Rachel Reeves: The main thrust of my speech was to point out that growth had been downgraded and we did are being left behind. Although I welcome the enterprise not know that until today. It was only when we heard zones, the evidence from the 1980s shows that such the Budget that we knew that growth had been downgraded, approaches move, rather than create, jobs. Of course, for the third time in a row, to 1.7%, so I could not have the funding for enterprise zones is a fraction of what the written it earlier. regional development agencies had to spend. Mr Jackson: I know that the hon. Lady has some Mr Kevan Jones: Does my hon. Friend agree that expertise on these issues. She can rest assured that my because the enterprise zones are being imposed on criticism will be confined mainly to the Leader of the regions, unlike in London where the Mayor will decide Opposition, who delivered a master class in opportunism where they are, entire areas of the north-east such as and vacuity. His loquacity was in inverse proportion to Northumberland and Durham will be completely excluded his intellectual insight. In his 15 minutes of speaking, from them and the little help they will bring? no policy whatever was articulated. Rachel Reeves: I do agree. Of course, only half the The Budget is supported by the OECD, the International plans were announced today, which was disappointing. Monetary Fund and business leaders such as the deputy We need an approach to business taxation that fosters director of the CBI, John Cridland, and David Frost of growth. Although the Government have trumpeted the the British Chambers of Commerce. It is about the cut in corporation tax, it has so far been funded at the Government putting in place the conditions for sustainable, expense of investment and manufacturing allowances, balanced economic growth. Let us remember that the so while big businesses have benefited from a tax cut, Institute for Fiscal Studies still says that public finances start-up and investment-intensive firms have seen their remain in a critical condition, but we have had no taxes rise. If we are to create the jobs of the future, we alternative whatever from Her Majesty’s Opposition. need today’s entrepreneurs to innovate and that is where Indeed, we might have to call in Professor Brian Cox, the limited funds should be targeted. the noted cosmologist, to search for the black hole We also need greater investment in skills and education. where the Labour economic policy should be. Last year, 8 million people graduated from universities in China and India. No other country is cutting investment Helen Goodman: Will the hon. Gentleman give way? in universities, reducing the teaching grant by 80% and cancelling partnerships between business and universities, Mr Jackson: I will make some progress; I am sure but that is what the Government are doing. that I can let the hon. Lady in a bit later. The priorities Last week, we heard that the youth unemployment of the Budget are primarily to reduce the deficit; rebalance figure is approaching 1 million and it beggars belief that the economy, which was left out of kilter by the Labour the future jobs fund is closing its doors in the same Government, with an over-concentration on financial month that youth unemployment has risen yet again. services, the housing market and public expenditure; One in five young people—more in my constituency—now reform public services; and grow, via initiatives such as claims unemployment benefit. Today’s unemployment the green investment bank, green expertise, knowledge, figures are likely to rise further and today’s Budget is skills and jobs. If I may give a plug, yesterday a collaboration bad news for young people up and down the country. was announced between Peterborough city council and The public recognise the need for austerity, but they Cranfield university on a centre for renewable energy also want to know that the Government have learnt and biofuels, to be based in Peterborough. lessons from the crisis and are determined to build a We need to move towards a high-wage, low-taxation fairer and more sustainable economic future. Britain economy with less pressure on household incomes, and could be a world leader in the jobs, technologies and the Budget provides a road map for that. No one denies industries of the future but only if the Government that we have had to make some very tough decisions in support growth. Today was the Chancellor’s opportunity the comprehensive spending review and in last year’s to show that he understands the needs of businesses emergency Budget. There were real-terms cuts in and families, but the OBR’s verdict was to downgrade departmental expenditure; the cut to departmental growth for the third time in 2011 and for next year as expenditure will be, on average, 11%. However, we well. The Government have ignored the wake-up calls. should remember that between 1998 and 2010, there This Budget is a missed opportunity and I urge the was a real-terms increase in budgets in each Department Chancellor and his colleagues to think again about of anything between 2% and 8%. The fiscal tightening what is really needed to ensure that we emerge from this between now and 2015-16 will mean that we have to recession with a stronger, fairer economy for everyone reduce public expenditure and put taxes up, with capital in the country. gains tax, tobacco, fuel, the bank levy, consumer prices indexation and child benefit affected. Contrary to received Mr Deputy Speaker (Mr Nigel Evans): Thank you for wisdom among Opposition Members, the richest 2% will your time restraint. be hit hardest by the tax benefit and other changes. What choice do we have? Labour’s poisonous legacy 5.32 pm and debt millstone left us with simply no alternative. In Mr Stewart Jackson (Peterborough) (Con): It is a 2010-11, we had to borrow about £140 billion—perhaps pleasure to follow the hon. Member for Leeds West around £10 billion less than expected. Only Ireland has (Rachel Reeves), but I am tempted to say that hers was a bigger cyclically adjusted deficit. Labour ran a structural a bit of a Blue Peter speech—here is one I prepared deficit some seven years before the banking crisis in earlier. I am not sure that she has done anything other 2007-08, and we entered the financial crisis with the than regurgitate the line from the Whips Office. largest structural deficit in the G7. The national debt 1031 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1032 Situation Situation doubled between 1997 and 2010. In May last year, we If there is one lesson that I can offer the Labour party were at significant risk of a downgrading in our from our long period in opposition, it is this: rarely is it international credit rating, with a catastrophic impact enough to be populist to win the respect of the electorate. on public services, business and consumer confidence, a That rarely forms the basis of a credible election strategy. long period of stagflation, and a contraction in the economy. Helen Goodman: Is the hon. Gentleman satisfied with a Budget to which the oil and gas industry responded Rachel Reeves: I want to enlighten the hon. Gentleman this afternoon by expressing its shock and stating that with two facts. First, in 1996, just before the Labour the investment climate has been seriously damaged and Government came into power, there was a structural the Budget will drive jobs away from this country? budget deficit of 4%, whereas it was 2.5% in 2007. Secondly, he compares the UK economy to that of Mr Jackson: That is one viewpoint from one group of Greece, but does he recognise the figures that show that people. Others, such as Baker Tilly, the tax accountants, although bond yields in Greece increased from 7% to say that it is an excellent Budget. So do the CBI, the 12% between January and May 2010, in the UK, before OECD, other industry groups, house builders and others. the Conservatives came to power, they were falling? [Interruption.] I am glad the hon. Lady thinks it is humorous that people are supporting my right hon. Mr Jackson: The hon. Lady will know that the markets Friend’s Budget. have recognised that the fiscal consolidation that the Government had to put in place as part of a policy of Gareth Johnson (Dartford) (Con): One group of people growth in the private sector and consolidation in the who will welcome the measures in the Budget today is public sector has resulted in a lessening of the pressures motorists. Does my hon. Friend agree that the measures in the gilt markets, with gilt yields down to 3.53% since cutting fuel prices ensure that petrol prices will not only May last year, and every 1% is £1 billion of interest not affect motorists directly, but will not have an impact payment. Of course, that is change in the pocket to on the price of goods in the shop, which in turn will Labour Members; we are spending £120 million on debt assist middle England? every day. Mr Jackson: My hon. Friend makes an apposite Helen Goodman: Will the hon. Gentleman give way? point. I lobbied the Chancellor myself, I campaigned for the policy and I am glad that he has listened to the Mr Jackson: No, not at this moment. To put that in views of people, many of whom rely on the car to travel context, £95 million could have been spent on schools to work. It is a matter of public record that had Labour each day, but we are servicing Labour’s debt, and we been re-elected in May last year, petrol prices would could be spending £35 million on police, £25 million on have been going up an extra 6p. That would be the price social care, and £90 million on defence. The entire of Labour’s profligacy. budget deficit that the Labour party ran up in government I am delighted that we are taking more poor working is £42.7 billion. That is 40 Type 45 destroyers, 33 Astute people out of tax, and that we are creating local enterprise class submarines, 42,700 MRI scans, or 1.3 million zones to drive regeneration in some of the more difficult nurses. That is the reality of the appalling profligacy economic areas of Britain. I am delighted, too, that we and mismanagement of the Labour Government. We are tackling corporation tax and creating conditions in do not hear alternatives. We hear a policy that is dishonest, which business wants to relocate to the UK and create incoherent and irresponsible. The right hon. Member jobs. for Morley and Outwood (Ed Balls) shares very few values, I imagine, with the former US President Ronald Sir Robert Smith (West Aberdeenshire and Kincardine) Reagan, who once said, “I am not worried about the (LD): But does the hon. Gentleman not realise the great deficit. It is big enough to take care of itself.” That sums damage the Budget has done by saying to investors, up the Labour party’s attitude in government, and the “You come to the United Kingdom, you invest in deficit denial on the Opposition Benches now. success, you employ 450,000 people, you make 20% of Even some sensible and pragmatic Labour supporters the Exchequer’s corporation tax, and then, once you are troubled by the incoherence and the substitution of have made all that investment, the Government move political opportunism for a realistic alternative policy. the goalposts and whack up a huge extra tax on your The erstwhile Cabinet member, the right hon. Member industry”? for Salford and Eccles (Hazel Blears), said at the weekend: “The public expects us to at least give a broad direction—but I Mr Jackson: I fully understand and respect the hon. think they are worried that we haven’t been as clear as we ought Gentleman’s constituency interests. Were I in his position, to be.” I would make the same points. Clearly, when we are in a She is absolutely right. less than benign financial situation, clearing up the The former general secretary of the Labour party, abysmal mess left by the Labour Government, we have Peter Watt, went further. In a rebuke to the institutionalised to make difficult value judgments. To govern is to deficit denial of the shadow Chancellor, Mr Watt said choose, and sometimes the choices made will not please on the labour-uncut website that Labour everyone. I understand and respect the hon. Gentleman’s views, and I am sure the Chancellor and the Treasury “is...ahighly toxic brand...wearestill opposing every cut...It Front-Bench team have heard his views. might make us feel better and win some short term popularity. But it isn’t an answer to the charge that we had become economically illiterate and had allowed massive overspending.” Dame Anne Begg: Will the hon. Gentleman give way? 1033 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1034 Situation Situation Mr Jackson: No, I do not have time. Although other I would like to focus on two issues: the lack of a Members spoke for much longer, I will have to finish policy for growth in the Budget and how that will not quickly. affect positively the economy of the north-east of England. I am delighted about the permissive nature of the Growth figures for the last quarter of 2010 show that reforms to the planning system and about the desperately the economy contracted by 0.6%, as was mentioned by needed initiatives for first-time buyers. It was extremely my hon. Friend the Member for Leeds West (Rachel important that the mortgage market review of the Financial Reeves). The Government blamed snow for that, but Services Authority was not going to choke off first-time she eloquently pointed out some great examples of buyers. Some figures show that 37 is now the average economies that grew despite having weather that was age at which young—less young—men and women buy far worse than it was in this country. their first homes. We had a significant housing boom in On top of that, last week we saw a 17-year high in the 1990s and 2000s and need to encourage the house unemployment, set against a continuing fall in house building industry to build more homes without choking prices and an increase in inflation to 4.4%. It would not off house prices or the capacity of young people to own take an astrologer, as was mentioned earlier, or a genius houses and flats. to work out that the OBR was going to have to downgrade I am also delighted that residential estate investment its growth forecast today. Initially, it said that growth trusts will be looked at. We need to clarify the regulations would be 2.6%; then, that it would be 2.1%; and today, relating to brownfield remediation, which is an important that it will be 1.7%. The lack of growth is the main risk part of bringing back into use residential and commercial to our economy, and let us be honest, the Budget was sites. In future Budgets we need to think carefully about spun so much that we could have read or predicted most giving tax incentives for saving to first-time buyers so of it before the Chancellor even stood up at the Dispatch that they can build up moneys for a deposit in preparation Box today to announce it. for buying a home. We also need to look at stamp duty The Government also say that the key thing they have land tax. I am pleased that we are beginning to look at to do is to reduce borrowing, but borrowing is now self-invested personal pensions in relation to people’s going up, so even by their standards the economic pill is capacity to invest in the housing market. clearly not working. What is happening now is both In conclusion, the Government have had the courage risky and dangerous to the UK economy, and, although and determination to take tough decisions and to prepare history cannot be repeated precisely, we need to look the ground for economic recovery. A credible plan to back, because one of the key lessons we have learned deal with our record budget deficit is an absolute from the 1920s and ’30s is that recovery from large precondition for growth. The Chancellor is right to financial crises is delicate, slow and stuttering. Now, as strive for a balanced Budget and a firm and consistent a precise result of this Government’s policies since May, strategy that will deliver for ordinary families in my growth is down and unemployment, borrowing and constituency and across the country lower taxes, more inflation are up. jobs, better living standards and a renaissance in our international competitiveness. That is the only way to Rachel Reeves: Does my hon. Friend agree with me achieve future prosperity, which is why on Tuesday I and the chief economist of the International Monetary will be supporting the Budget. Fund, Olivier Blanchard, who says: “Unless advanced countries can count on stronger private Several hon. Members rose— demand, both domestic and foreign, they will find it difficult to achieve fiscal consolidation”? Mr Deputy Speaker (Mr Nigel Evans): Order. The debate will finish promptly at 7 pm. Mr Jones: Yes. That is the entire flaw in the Government’s policy: the idea that they can cut public expenditure as deeply and savagely as they are going to, and that 5.47 pm somehow jobs will be created in the private sector— Mr Kevan Jones (North Durham) (Lab): I was going something that will just not happen. It might happen in to say that it was a pleasure to follow the hon. Member parts of the economy, but there is certainly no indication for Peterborough (Mr Jackson), but we have heard a that it will happen in my region. In fact, the situation is succession of speeches from Government Members that even worse, because Durham university’s model shows were not only economically illiterate, but stuck to the that taking out 20% of the public services will lead to rhetoric pumped out during the general election. They 50,000 jobs going in the north-east, with 20,000 of them seem unable to get away from that rhetoric even when actually in the private sector. Replacing those jobs, in the reality of what this country is facing hits them. We addition to the 30,000 in the public sector, is going to be heard a rant from the hon. Member for Southend West very difficult. (Mr Amess) and, frankly, a very strange speech from the hon. Member for Orpington (Joseph Johnson), who Sammy Wilson: Does the hon. Gentleman accept clearly had read something about the gilt market but that, if the growth figures are wrong, the impact will be did not quite understand how it works. magnified and multiplied the further one moves away I congratulate my hon. Friend the Member for Barnsley from the south-east of England? The impact on regions Central (Dan Jarvis) on an excellent maiden speech. I of the United Kingdom will be much more severe if the think he will be a great asset to the House. He is a Chancellor has got it wrong. man of great courage in both his private and personal life and in the service of this country. I look forward Mr Jones: The hon. Gentleman makes a very good to many more contributions of the standard he gave point, but do the Conservatives care? No, I do not think today. they do. We saw that in the 1980s and early 1990s in the 1035 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1036 Situation Situation north-east of England. His constituents will face similar Was it right to transform and invest in our public problems to constituents in the north-east, given the services over those 13 years? Yes, it was. They have been contraction of public sector jobs, which will have a transformed in many parts of this country, certainly in direct impact on the private sector. Trying to attract my constituency. When I was first elected in 2001, the business and growth to those areas will be very difficult, hospital in Chester-le-Street was in the old workhouse. and I fear that we could have a two-speed Britain: a We now have a brand-new hospital in Chester-le-street, reasonably prosperous south-east of England, but stagnant as well as three others in the area. We have six or seven or even declining regions, such as the north-east and new primary care centres in County Durham. That is a Northern Ireland. Does the Conservative party care direct result of public investment. When the economic about that? No, I do not think it does. crisis hit, did we have to respond to that by borrowing? Yes, we did. Was it the right thing to do? Yes, it was. Sir Alan Beith (Berwick-upon-Tweed) (LD): How At the time of the crisis at Northern Rock, if we had does the hon. Gentleman deal with the fact that, even followed what the Conservatives, including the current with Labour’s slower rate of deficit reduction, he could Chancellor of the Exchequer, wanted to do, which was not have avoided a significant decrease in the number of basically to let it fold, we would have had a far worse public sector jobs to meet his party’s own projections of situation, with a banking crisis that would have devastated how it would reduce the deficit? not only Northern Rock but every other bank. The then Chancellor put in place a package to support banks, Mr Jones: I find that hard to stomach, coming from subsidise mortgages, cut VAT, fund apprenticeships, the right hon. Gentleman, because he is giving succour and give people money to buy new cars and stimulate to the proposals before us, which could damage the the economy—and it worked. If people want to look for north-east economy more severely than even those in the evidence for that, there is the growth of the economy Thatcher’s day. He is looking both ways, as a Liberal in the months prior to, and just after, the general saying one thing in the region, and then coming here election. and supporting and voting for a Conservative Government who are putting the proposals forward. [Interruption.] Contrast that with what we have now—a Government I will tell him exactly why. What we would not have who do not have a growth strategy and are wedded to a done is put forward his and his party’s ludicrous proposal strategy that they feel it would be politically weak to go to abolish the regional development agency, One North away from, repeating time and again that there is no East. alternative. I ask Conservative Members to reflect on what they would have done at that time. Last weekend, The right hon. Gentleman now has to defend his the Chancellor said that we were in this financial state ludicrous policy on local enterprise partnerships, which because of a decade of over-expenditure by the Labour I shall come to later. He struggled to get re-elected this party. Well, the Conservatives supported our spending time; I doubt whether the voters of Berwick will re-elect targets right up until 2008, so they cannot have it both him if he stands next time. It is important to remember ways. I ask them to look at the facts rather than what that none of this could have happened without the central office spun during the election campaign, which, Liberal Democrats blindly going along and supporting unfortunately, some of them are continuing to repeat. those savage cuts, which will have a terrible effect on a region I know he actually cares deeply about. Sajid Javid: I am glad that the hon. Gentleman said Another major aspect of the current economic situation that one should look at the facts. Is he aware that the is inflation. The Bank of England is stuck between a spending cuts over this parliamentary period are only rock and hard place. Interest rates are as low as they can 3.7%—0.9% a year—in real terms, which is lower than go, and quantitative easing is continuing, yet the inflation the spending cuts that were implemented by Denis target is way above where it should be. It is difficult to Healey, a former Chancellor? On that basis, would he know what the Bank will do. still describe them as swingeing, drastic or tough cuts? We continue to hear, as we have heard several times this afternoon, that there is no alternative to this approach. Mr Jones: I am sorry, but yes I would. If hon. I am sorry, but there is a definite alternative. We also Members are going make comparisons, they should hear that the fact that we are in this mess is all down to a compare like with like. Whoever writes the central office Labour Government—that only Britain went through briefings does one thing all the time. They compare our the recession in 2008, while the rest of the world did economy with that of Greece or, as the hon. Gentleman not, and that we got into the position we did only just did, they compare the British economy today with because of Labour’s reckless spending and financial that of the 1970s. That is complete nonsense. management. I want to put some facts on the record. The central point—some Liberal Democrats are starting Conservative Members use a lot of rhetoric and soundbites; to wake up to this, including the Deputy Prime Minister—is the famous one from the Prime Minister was that that although there is a need and a desire to reduce the Labour did not mend the roof while the sun was shining. deficit, there is also an ideological drive to have a In fact, we did, because when we came to power in 1997, smaller state and to put into practice the ideological the level of debt was nearly 50% and we reduced it. I prejudices that the Conservatives have yearned to implement remember the tremendous debate within my party when for many years. The people of this country will suffer we sold off the 3G licences. People said that we should from that. Is there an alternative? Yes, there certainly is. use that money to fund public expenditure, but the then Chancellor took the very good decision to drive down Mr Greg Knight (East Yorkshire) (Con): This trip the level of debt. That left us, going into the economic down memory lane is very interesting, but, if he does downturn, in the strong position of having the lowest not support the expenditure cuts, will the hon. Gentleman debt, unemployment and inflation in the G7, and the tell us how much more he thinks we as a nation should highest investment from overseas. be borrowing? 1037 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1038 Situation Situation Mr Jones: Something that the central office spin The disastrous situation at the moment is that we have machine does very well, and which Thatcher did, is £106 million of European regional development fund somehow to compare the national economy to somebody’s but no money for One North East, local authorities or personal expenditure. Can we afford to borrow at the universities to match fund projects. The Government’s moment? Yes, we can. Borrowing to invest in infrastructure regional strategy is in a complete and utter mess, and and other things is the right thing to do, and is exactly the Budget will do nothing to assist. what we were doing in government. We are increasingly One issue that has already been raised is— borrowing not to invest in the economy and infrastructure and to add to the country’s economic power, but to Mr Gyimah: So why raise it again? support unemployment. That is exactly what the Major Government found in their dying days. Mr Jones: Does the hon. Gentleman want to intervene? It is important to recognise that unemployment in the north-east has reached 10.2%, and that is before the real Mr Gyimah: The hon. Gentleman said that the point effects of the public expenditure cuts work their way he was about to make had already been raised a number through. The idea of economic zones or business of times, so I was asking why he was raising it again. development zones, or whatever they are called, was announced in the Budget, along with the local enterprise Mr Jones: If the hon. Gentleman continues, I might partnerships. One North East was very successful in go on for a bit longer, so he must be clever and not regenerating the north-east economy. It actually moved do so. the economy away from the public sector and grew the As my hon. Friend the Member for Aberdeen South private sector. It had real money. It had £180 million a (Dame Anne Begg) said, it has been billed that the year, and worked with the local university sector and Government have somehow saved the motorist by reducing local authorities to spend European regional development tax by 1p, but the effects of paying for that will be funding. The LEPs have no money attached and the disastrous for the oil industry in this country, including regional growth fund has £1.4 billion to be competed Scotland. They will be disastrous for the north-east, as for around the country. Today, we have the enterprise it relies heavily on Teesside and Tyneside to supply the zones. expanding gas and oil fields, which need long-term investment. It is completely and utterly irresponsible to Mrs Mary Glindon (North Tyneside) (Lab): The throw a spanner into the works of the investment in Government have said that they want enterprise zones developing some of the most difficult oil and gas fields to support real growth and long-term sustainability. in the North sea. Does my hon. Friend agree that the announcement of an enterprise zone for Tyneside means little for growth Dame Anne Begg: Does my hon. Friend agree that or sustainability when the Transport Secretary has said the danger of today’s proposals is that they might that he will not provide funding for the much-needed fatally undermine the whole North sea offshore sector, upgrade of the A19 Silverlink interchange, which businesses which is fragile anyway because the geology makes it have told politicians is essential for the economic difficult to get the oil out? As a result, the country may development of Tyneside and the wider region? lose even more money, because the sector is a huge taxpayer. As my neighbouring MP, the hon. Member for West Aberdeenshire and Kincardine (Sir Robert Mr Deputy Speaker (Mr Nigel Evans): Order. The Smith), said, 20% of all corporation tax is paid by the interventions are becoming very long. I have said that industry. What is being done today could put that in we are under real time constraints, as Mr Jones knows jeopardy. as well. Mr Jones: I agree, and there will also be a direct Mr Jones: I do know that, Mr Deputy Speaker, but it impact on jobs in oil exploration and in the booming oil is important to get these things on the record. supply business in Tyneside and Teesside. The short-term My hon. Friend the Member for North Tyneside measure to try to get the Government out of a political (Mrs Glindon) makes a good point. The two enterprise fix on petrol prices will cause deep and long-term zones for the north-east will be in Tyneside and the Tees damage to jobs in the north-east and in my hon. Friend’s valley. That important piece of infrastructure is somehow constituency. supposed to be funded by the private sector, but that is The first-time buyer scheme, which the Red Book exactly the kind of public expenditure that should be states will cost £250 million for just one year, will not going into the region to create jobs and regenerate help the north-east in any great way, because it will infrastructure. My concern about the enterprise zones is clearly be concentrated where a large number of houses that places such as Durham and Northumberland have are being built—the south-east and other areas. Because been left out. If we look back at the old enterprise the Government have removed housing targets and zones, we see that all we got from them was a shovelling affected social landlords’ ability to build new houses around of businesses and artificial borders. The zones through the ham-fisted way in which they have structured will make it very difficult to attract inward investment the financing of social house building, I doubt whether to Durham and Northumberland. there will be much effect on the north-east. As has been said, page 42 of the Red Book shows I also note that none of the £200 million additional that funding for the 22 enterprise zones will add up to investment in regional railways will go further than about £1 million each over their lifetime, which will not Leeds. Investment schemes for railways in the north-east—I in any way help the regeneration of either Tyneside or have been calling for extra capacity for people to commute Teesside. We will have the talking shops of the local into Tyneside from Chester-le-Street and other places—will enterprise partnerships, but no real money to do anything. clearly not be forthcoming. 1039 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1040 Situation Situation Finally, I wish to mention armed forces pay. The Mr Jones: I am not giving way, I am afraid, because Chancellor said that there would be a £250 uplift for certain Members have taken far too long in the debate, those in the armed forces earning less than £21,000. I thereby stifling others. remind the House that that is from the same Government I am delighted that the personal tax allowance has who have frozen armed forces pay for the next two been increased to more than £8,000 this coming year. It years. In addition, they have changed the calculation is vital that we free people from the shackles of tax, from RPI to CPI, which will cost many thousands of particularly those on lower incomes. It is excellent that servicemen and women huge sums of money over the 1.1 million people will be lifted out of income tax coming years. The Government should not be proud of altogether—[Interruption.] The hon. Member for Stretford that. I get rather annoyed because if the previous and Urmston (Kate Green) does not understand. The Government had done that, when I was a Defence previous Government shackled people to income tax. Minister, the Conservatives and Liberal Democrats would They increased the minimum wage way above inflation had howled us down and called us a disgrace. year on year, but they did not increase the personal Is this a Budget for growth? No, it is not. Will it help allowance, which meant that more and more people the north-east of England? No, it will not. Under the were sucked into income tax. confused regional policy that is proposed, which is supported by the right hon. Member for Berwick-upon- Kate Green: Will the hon. Gentleman give way? Tweed (Sir Alan Beith) and his Liberal Democrat colleagues in the north-east, we will find that as the country’s economy declines and contracts, regions such as ours Mr Jones: No. I am not giving way to the hon. Lady. will go from the very bad position that they are in now Moving on, I welcome the help that we are giving to an even worse one. first-time buyers, although I would ask those on the Front Bench to consider a couple of issues. Can we 6.10 pm build the properties that we need to sustain the scheme quickly enough? Would it be better to extend the scheme Mr Marcus Jones (Nuneaton) (Con): I will be a Jones to older properties, as well as new-build properties? who shows some brevity out of courtesy for his colleagues First-time buyers are the lifeblood of the property on both sides of the House. market and of any chain. I acknowledge that the policy I welcome the Chancellor’s Budget and congratulate will do a lot of good for the building industry, but we him on it, because this is a difficult time to be a Chancellor also need to put in place measures to ensure that the and to deliver a Budget, as it will be for the rest of this property market can sustain itself. Currently it is under Parliament. As much as Opposition Members like to intense pressure. Expanding the policy to cover the deny it, the Chancellor is constrained by the straitjacket property market as a whole will do a lot of good and of the deficit and the debt left behind by Labour. We improve the situation for the industries that rely on it. must view the Budget in context. We are paying £120 million I make a plea for the Chancellor to look at stamp a day in interest alone on our debt—£43 billion this duty land tax in his next couple of Budgets, because it is year, which is more than we spend on the armed forces, quite punitive in terms of the slab rate, particularly up the Foreign Office and the Department for International at the £250,000 threshold. Over this Parliament, if not Development combined—which is a scandal. during the next one, we need to look at putting in place I therefore commend the Chancellor for what is, in changes to stamp duty land tax that result in more the circumstances, a first-rate Budget. It goes some way marginal rates, just as we have different levels of income to recognising the financial pain that is being felt in the tax. country, and serves to set a clear tone for the business I also make a plea for anything that is done in the community. This Government take businesses far more property market to be implemented as quickly as is seriously. They recognise that people and businesses practically possible. Back in 2008, the Labour Government and not the state create jobs—sustainable jobs—and introduced a stamp duty holiday, but if I recall rightly, that if we are not serious about business, the country they suggested in the press that they were doing so cannot sustain in a settled fashion the important public about six or eight weeks before it was actually implemented. services on which we all rely. That had a dramatic and devastating effect on the There are positives in the Budget for individuals and property market and those involved in it in that interim businesses, but I shall also respectfully mention one or period. Therefore, if we are putting policies in place, we two concerns about it. I welcome the announcement on need to ensure that we are expeditious in implementing fuel, which is currently the biggest issue for my constituents. them. People will tonight breathe a sigh of relief that the 5p a litre increase programmed into the Budget by the previous This has been a great Budget for business, within the Chancellor, the right hon. Member for Edinburgh South constraints that the current Government face. I would West (Mr Darling), has been deferred. I am delighted also like to mention fuel again. There are many small that that has happened. People will also breathe a sigh and medium-sized hauliers in my constituency who are of relief that the Government recognised the importance struggling to cope with increases in the price of fuel. In of that, and decided to get off the escalator at the right the main, they have to pay for fuel at the pump, but they time, unlike the previous Government, who did not are not paid by those for whom they work for 60 to know when to get off, as we saw in 2000 when our fuel 90 days. I am sure that they will welcome the Chancellor’s depots were blockaded by truckers and angry motorists, announcement today. which I hope will not happen now. Regulation is one of the biggest banes of business, particularly small and medium-sized businesses, and Mr David Hanson (Delyn) (Lab): Will the hon. costs them £80 billion a year, so they will welcome a Gentleman give way? reduction in red tape and regulation. They will also 1041 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1042 Situation Situation [Mr Marcus Jones] Those pressures, including what is happening in the middle east and the price of food and other basic welcome the fact that the Prime Minister is looking to materials, make it more important that we get our reduce regulation in the European Union to make it policy right domestically. We have recently seen CPI more competitive as a whole, which is vital. I hope that inflation rise to 4.4% and RPI inflation rise to 5.5% in Government Members will continue to press the Chancellor the UK, yet inflation for the EU as a whole is 2.8%. and the Prime Minister to ensure that those plans bear This picture of increased prices must also be taken into fruit, because they are important to freeing up our consideration in the context of our constituents whose businesses and allowing them to expand and employ wages are being held down. People have not seen an more people. increase in their pay packets, but they are seeing price I want to mention the beer and pub industry. I am increases in the shops. slightly disappointed that in that today’s Budget we What is causing this inflation? I am well aware of the have not sought to do anything about the beer duty structure for setting interest rates and controlling price escalator introduced by the previous Government. Since increases, and I look to the Governor of the Bank of 2008, beer duty has increased by 26%. Unfortunately, England for an explanation as to why inflation has we have not looked to soften that blow today. However, moved away from the targets. He says that I hope that those on the Front Bench will listen to what “three factors can account for the current high level of inflation: I am saying and look to soften the blow for both the the rise in VAT relative to a year ago, the continuing consequences brewing industry and the pub industry. We have hundreds of the fall in sterling in late 2007 and 2008, and recent increases in of thousands of pubs closing every year. Our great commodity prices”. British pub is under pressure, and we should look to He cites the Tory tax hike as having played a part in support it. I hope those on the Front Bench will take building inflation. My worry is not just about inflation that on board. this year, however; it is about people’s expectations of Finally, I want to mention the advances that we are building inflation and the permanent hit that they will making on skills, which are vital to ensuring that our have on families. work force can sustain the jobs that we will hopefully help to create in the economy with the additional measures John Thurso (Caithness, Sutherland and Easter Ross) that the Chancellor has mentioned this afternoon. It is (LD): Will the hon. Lady give way? fantastic that we will have another 250,000 apprenticeships over the next four years. I am heartened by that, because Alison McGovern: I will not, if the hon. Gentleman young people have for so long been cast adrift, and this does not mind; I am conscious that other Members will help to bring them into employment and training in want to speak. a sustainable way, and also in a way that will perhaps Labour rightly instigated a temporary reduction in enable them to garner the knowledge to create their the rate of VAT to help us through the downturn, but I own businesses one day and employ others, which is am now worried because the Tory-led Government have what we have seen over many years. implemented a permanent hike in the prices that ordinary I welcome the university training colleges, and I am people in my constituency face in the shops. That is sure that the large industrial companies in the west clearly having a huge impact on our economy and midlands will welcome that approach. I hope that it will threatening future growth, as has been illustrated by the help people to acquire the skills to fill what those reduction in the growth forecast. companies are describing at the moment as a void. On the increase in commodity prices which has also Companies such as Jaguar Land Rover want to expand caused inflation, the Chancellor said in his statement greatly, and they need a supply of skills to sustain any that the UK would seek to have an impact on those such expansion. They need skills from local people in prices through the G20. It is therefore incumbent on the west midlands. We do not want to bring in people Ministers to explain how they are going to engage with from other countries to fill that void. our international partners to achieve that. There is no Given the constraints that the Government are having doubt that those worldwide events are having an impact to work under—it was far from a golden legacy that we on the streets of Bromborough, Bebbington, Heswall inherited from Labour—this is a positive Budget with and New Ferry in my constituency, and I would like to good intentions for business and for creating jobs with know what action the Government are going to take in substance. It also contains measures to bring back to that regard. this country the prosperity that has been badly needed I shall deal briefly with young people and employment. for many years. I know that Members across the House care about the issue, but we need to bring some words of caution to the 6.21 pm debate. The Chancellor rightly reserved extra funds for the future training of apprentices, but money reserved Alison McGovern (Wirral South) (Lab): It is an honour does not equal apprentices hired. Other factors are to participate in the debate in which my hon. Friend the necessary for getting young people into employment. Member for Barnsley Central (Dan Jarvis) made his The first, business confidence, is vital: businesses must maiden speech. He made a really excellent contribution. have the confidence to invest. I refer hon. Members to I want to comment on two aspects of the Chancellor’s what I said about the in-built inflationary expectations statement: first, on inflation and the cost of living that in the economy and what they might do to investment. people in Wirral and elsewhere are facing; secondly, on It is a matter of great concern. A second necessary young people and employment. On inflation and the factor is growth, and it is worrying to see growth cost of living, we all need to acknowledge the global forecasts revised downwards. The Chancellor might pressures that are causing price increases in the shops. have said that this was a Budget for growth, but I feel 1043 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1044 Situation Situation that it was all words and very little action. A final In addition, we are done a disservice because Labour necessary factor is a change in culture, whereby businesses Members’ failure to atone makes their constant outcries feel that it is their role to bring on the next generation. sound like a masquerade of keening by discredited The current generation at work should be allowed to professional mourners of the past. It would be much share their skills in the informal setting of the workplace more insightful if they were able credibly to engage in to bring on the next generation. the issue of how to get the deficit back under control. I highlight, as always, the role of my own local As their own unofficial website, Labour Uncut says, authority. Wirral has shown great leadership in the their current strategy of sphere of encouraging small and medium-sized businesses “Hang on, I haven’t decided” to take on apprentices. However, the local authority does not answer the needs of the time. cuts, which have been much greater in our area than in others, have put Wirral’s ability to play this role in Mr Gyimah: I think that Labour has a plan. As we jeopardy. The Government need to think about how discovered from its press conference last week, the plan they will bring about this change of culture in practice is to repeat last year’s bank bonus tax and spend the rather than simply reserve the funds and say they are £2 billion that it raises in 10 different ways. there if business wants to take them. Finally, I fear that Britain is seeing the end of any Richard Fuller: I shall be interested to see how Opposition interventionist role for the Government. I feel strongly Members respond to what my hon. Friend has said. that the future jobs fund was an excellent answer to I would subject the Budget to the tests specified by youth unemployment, but the Government have withdrawn the hon. Member for Barnsley Central: the impact that from it. They say they are reserving funds for apprentices, it will have on the most vulnerable, and what it will do but they are doing little more than that to encourage for growth. It is difficult to introduce deficit reduction businesses to invest. We are also seeing inflationary measures that do not disadvantage the poorest. What pressures on the cost of living, which the Governor of the hon. Member for Wirral South said about the the Bank of England relates to the rise in VAT. This is a impact of rising prices on people who were not receiving price hike that hard-pressed families in Wirral and increases in their pay packets was absolutely right. I say elsewhere can little afford. On those two issues that I to Ministers that—not necessarily for the purposes of have prioritised, I would like to see Ministers taking the current year, but certainly as we look forward to much more action. next year and the year after that—we must think very Mr Deputy Speaker (Mr Nigel Evans): I thank the carefully about what we will do for public sector workers hon. Lady for her time restraint. who have experienced a pay freeze in at least one year, and in some cases in a number of years. Members on 6.27 pm both sides of the House will want to hear a little more about that. Richard Fuller (Bedford) (Con): May I draw your attention, Mr Deputy Speaker, and that of other hon. As I said earlier when I intervened on the hon. Members to the Register of Members’ Financial Interests Member for Aberdeen South (Dame Anne Begg), the and to my interests in venture capital and small businesses? issue of the mobility component of disability living I would also like to join others in praising the hon. allowance is also of vital interest to Members in all Member for Barnsley Central (Dan Jarvis) for his maiden parts of the House. We must ensure that we protect the speech, which I thought was eloquent, relevant and most vulnerable people in our care homes. I have met insightful. the Minister responsible for the disabled—the Under- Unfortunately, I cannot apply those three adjectives Secretary of State for Work and Pensions, my hon. to the speech of the Leader of the Opposition, which is Friend the Member for Basingstoke (Maria Miller)—on a great shame. When I listened to the right hon. Member many occasions, and I know that she shares my passionate for Doncaster North (Edward Miliband) during Monday’s interest in that subject. debate on the UN resolution, I thought he spoke as a In the context of protecting the most vulnerable, let serious statesman on behalf of not only his own party, me first urge Ministers to continue to give full support but the whole country. Today, however, I am afraid that to the welfare reform measures that are being pushed his speech was more like a pantomime act than a through by the Secretary of State for Work and Pensions. serious contribution. I hope that the shadow Chancellor The universal credit will be of major, long-term, significant will provide a better and more insightful response tomorrow. and beneficial advantage to low-paid and poor people It is a shame because the people of Bedford and Kempston in our country, and it is a measure that those on the want to hear not what is not going to be done, but what Treasury Bench should support in the years ahead. is going to be done. They heard very clearly from the Secondly, I should have liked to hear a little more Chancellor what he was going to do. about support for our charities. I was very pleased to It is not my job to tell Opposition Members to do hear about the £550 million of support that the Chancellor their job, but I think it is time that we heard from them was offering to them in the form of various benefits, but what they would do, which I did not hear. Up until the I should have liked him to be more radical. There are last speech by the hon. Member for Wirral South (Alison many steps that we can take to ease the rules and McGovern), I had not heard that at all. If Members are regulations and break down some of the barriers that challenged and accept that there is a deficit, it is important prevent social investment from various sources. We for them honestly to come forward and say what steps should be a bit more open in relation to the way in and measures they would cut. They should not just which money can flow from social investment to outcomes throw out the next unfunded commitment in response. and social impact bonds. I should have liked to hear That does not help achieve consensus in what are very about personal tax deductions for charitable donations, difficult times. and I should very much like the Treasury—either directly 1045 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1046 Situation Situation [Richard Fuller] the goalposts and taken all of the money to itself. I had thought that the implementation of the scheme had or through the big society bank—to help charities to been delayed until 2012-13, and that was certainly what procure local government services. They need that support was announced to business, but I see from measure O in to arm them in their continuing battles with bureaucracies. table 2.2 on page 44 of the Red Book that the Government The Budget expresses strong support for those who are now forecasting £715 million of revenue to the wish to invest in our small businesses. It strongly supports Treasury in 2011-12 from that scheme that only goes angel investment and mentoring. Small businesses and live in 2012-13. I ask Treasury Ministers to reconcile entrepreneurs want support from people—from local that anomaly. people who may have started up their own businesses—and The carbon floor price appears on the face of it to be we will seek to provide it in Bedford and Kempston. We a positive green measure, but in fact it betrays the lack will seek to bring together successful local business of coherence in Government thinking on this area. The people who can provide financial support through the Government’s electricity market reform recognises the advantages offered by the Budget in terms of angel need to incentivise 18 GWe of new generation capacity investment, and through mentoring to provide guidance in the UK by 2024. That is the equivalent of £200 billion and advice so that small businesses can grow. of investment between now and 2020. As Ministers The Budget challenges us. As many other Members know, much of this generation capacity will come from have said, we are about to be tested, and to go through gas. At a stroke, the Government have pushed away the very difficult times. It is important for Members on very investors they sought to attract. They are now both sides of the House to argue constructively, but we likely to encourage more imports and external dependency. should also rest on the great creativity and ingenuity of Why should European generators generate in the UK our small business people and entrepreneurs, because when they can generate abroad with no such tax upon they offer the future that will achieve growth in this them, and then benefit from higher UK prices by use of country. the interconnectors? One element of the Government’s energy market reform strategy has been to increase the Mr Deputy Speaker (Mr Nigel Evans): I thank the use of interconnectors. As a result of this step, investment hon. Gentleman for exercising time restraint. will be pushed into France, Belgium and the Netherlands. There is incoherence at the heart of the Government’s thinking on this matter. 6.33 pm I did not support the Government in the Lobby on Barry Gardiner (Brent North) (Lab): Thank you, Monday night in the vote on military action in Libya. I Mr Deputy Speaker. I shall try to honour the time pay tribute to our armed services, and to their valour constraints that you have imposed. and the work they do, but I cannot support the cost of Today the United Kingdom has the highest inflation the military escapade taking place in Libya, and I look since the days of Margaret Thatcher. The RPI stands at to what could have been achieved if the funds being 5.5% and the CPI at 4.4%. Today the United Kingdom expended there were instead being expended around the has seen the Chancellor announce a lowering of the rest of our country. growth forecast from the 2.6% predicted by the Office for Budget Responsibility last year and the 2.3% in the Mr Kevan Jones: Will my hon. Friend give way? last Budget to 1.7% today. Today the United Kingdom has the highest unemployment since 1984, when John Barry Gardiner: No, I will not. Major had just taken over from Margaret Thatcher. One Tomahawk missile costs £350,000, and 140 of This is not a Budget for growth into the future. It is a them were launched in the first 48 hours of the attack, Budget that will take us back to the future of Margaret which amounts to a cost of £50 million. It is estimated Thatcher and John Major. that the cost of prosecuting this military conflict is Inflation at 5.5% has a devastating impact on families £6 million each day. The cost of one day of action in in the UK, as £1 in every £20 that they earn is now lost. Libya could restore in its entirety the £2.25 million of For example, the Secretary of State for Environment, cuts in children’s services forced on my community in Food and Rural Affairs gave up an enormous 24% of Brent by this Liberal-Conservative coalition Government. her departmental budget to the Treasury over this spending One month in Libya could protect children’s services period, but inflation has now turned that into a real-terms across the whole of London. Nine months in Libya cut of 31%. Have Treasury Ministers commissioned, or could protect children’s services across the entire UK. do they intend to commission, any research into the Aneurin Bevan once said that priorities is the language capacity of Departments to deliver on their performance of socialism. Those are my priorities and that is why I indicators, given the effects of rising inflation on the will oppose this Budget. departmental spending cuts that have already been incurred? It is risible that this Budget has been delivered by a 6.40 pm Government who style themselves the greenest ever. The establishment of the green investment bank has Sajid Javid (Bromsgrove) (Con): I congratulate the been delayed until 2012, and it is still unclear whether it hon. and gallant Member for Barnsley Central (Dan can fully function as a bank or whether it will simply be Jarvis) on an excellent maiden speech. a glorified fund. The carbon reduction commitment has I would describe this Budget as healthily underwhelming. already outraged the CBI and British business. Instead I say “healthily” because it recognises that private of rewarding energy-efficient businesses and returning sector growth is crucial to our future prosperity. I say £1 billion to business, as the Labour Government proposed “underwhelming”because it reiterates the need to continue when we introduced the scheme, the Treasury has shifted our fiscal consolidation, and I congratulate the Chancellor 1047 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1048 Situation Situation on keeping on course with that. The Budget recognises has been mentioned by certain commentators and by the terrible economic inheritance that this Government Opposition Members. In fact, it is about 0.9% a year, were given. Our first Budget was a rescue mission, less than the cuts made by Denis Healey when he was whereas this Budget is about a desire to build on the Chancellor. foundations for economic growth. Our budget deficit I particularly welcome the Chancellor’s announcement was 11% of GDP—it still is, because the cuts have not that he will consider merging the operation of national yet really begun—and the largest of any major country. insurance and income tax. National insurance was Our national debt grew by 150% over the 13 years of the introduced by David Lloyd George 100 years ago on the Labour Government to £893 billion by the time they contributory principle, which hardly applies to national left office. If we add the costs of the banking interventions insurance today. It makes absolute sense to consider to that, we find that our national debt is more than merging its operation with that of income tax so that we £2.1 trillion, according to the Office for National Statistics. can reduce administration and compliance costs and That means that our debt as a percentage of GDP is on increase transparency.Many times in the past, a Chancellor a par with that of both Lebanon and Jamaica. Our has stood at the Dispatch Box on Budget day and said interest rate costs are £120 million a day and £43 billion that he is not increasing income taxes but has gone on in total this year, and they will rise each and every year to increase national insurance. That transparency will in this Parliament to £66.8 billion. Although Labour be welcome and in future it might lead to greater Members may be in denial, I am glad to see that the downward pressure from the general public on personal International Monetary Fund, the OECD, the CBI and tax levels. the Institute for Fiscal Studies are not. That measure would also add to the simplification of What compounds our problems and the need for this our tax code, which is critical, especially when it comes continued fiscal consolidation is the very uncertain to helping businesses. Our tax code has doubled in size global outlook. The eurozone is still in trouble, as I since 1997, with a guide almost 2,000 pages long, and it found when I checked the bond market yields of some is equivalent to 10 copies of Tolstoy’s novel, “War and eurozone countries this morning. Despite the bail-outs, Peace”. Greece’s yields are more than 13% and Ireland’s are Last year, I welcomed the Chancellor’s commitment more than 10%. Portugal is going through a parliamentary that the 50p income tax rate will not be a permanent test today, and its yields are more than 7.85%. Our feature of the tax system and I urge him, when he five-year bond yields are at 2.37%, despite us having the reviews the tax rate, to consider it in the same way as he largest budget deficit of all the countries that I just considered capital gains tax when it was raised from mentioned. The emerging markets are also causing 18% to 28%. A dynamic analysis was carried out at that particular problems for our growth prospects, with things time and perhaps such an analysis could be done of the slowing down in China, India, Brazil and Russia—China 50p rate to show that it does not bring in any extra tax has hiked rates twice in the past few months. We have from richer members of society. Perhaps if it is cut back relied on economic growth in that country to help our down to 40%, the rich will pay more in tax. own export industry, so we need to keep an eye on the situation. The Chancellor made a number of excellent announcements on growth. Time limits me from mentioning Lastly, as has been mentioned, in particular by the them all, but I want to highlight a few, particularly the hon. Member for Wirral South (Alison McGovern), moratorium for small businesses with fewer than there is concern about global inflation. Clearly inflation 10 employees. I hope that we can consider ways to deal has been caused primarily by rises in the price of oil, with regulations from the EU more constructively. I metals and food, but in the UK, in particular, devaluation note that the EU agency workers directive, if and when has had an impact. It has had a positive impact on it comes into force, will cost businesses in Britain almost exports, but it tends to import inflation too. What has £1.5 billion a year. Although the Government have a not been mentioned today is the potential impact of one-in, one-out policy, if that is successful it will only quantitative easing—the policy of buying up to £200 billion keep regulation at current levels. I hope that it will of both corporate bonds and gilts. That has an impact become a one-in, two-out policy. I welcome the enterprise on the money supply in this country and it is doubtless zones and the decision to speed up planning decisions having an impact on inflation. and ensure that they are made within one year. I also With RPI inflation at 5.5%—the figure was published welcome the decision to increase the enterprise investment yesterday—and our gilt rate at 2.37%, the real rate of scheme allowance from 20% to 30% as well as the return is negative on our bond markets and that is a increase in entrepreneurs’ relief and the cut in corporation very fragile situation for the markets. To put that into tax. context, the last time that RPI inflation was at that level The policies that will truly promote growth are those was in 1991. At that time, our five-year gilt rate was at that the Government have started to implement in some 10.09%. Clearly if the markets woke up one day and of their key plans in other Departments. In education, decided that they were not going to accept such low we will get young people to focus once again on core negative interest rates any more, we would be in a much subjects and, in the context of reskilling our young worse predicament. That underlines the need for continued people, I welcome the announcement that we will increase fiscal consolidation. the number of apprenticeships and build on the good On the Budget itself, I note that the Red Book shows work done by the Minister for Further Education, that spending continues to increase in cash terms from Skills and Lifelong Learning by adding another 50,000 £694 billion to £744 billion by the end of this Parliament apprenticeship places by the end of the Parliament. So, and that in real terms the actual fall in public spending 250,000 new apprenticeships will have been created by is 3.7%. I do not want to belittle such a decline in real this Government by the end of the Parliament. I welcome terms, but it is certainly not the type of savage cut that the decision in the context of welfare to introduce the 1049 Budget Resolutions and Economic 23 MARCH 2011 Budget Resolutions and Economic 1050 Situation Situation [Sajid Javid] cards to pay for. Shelter has highlighted the fact that one in 12 households in London is using credit cards to universal credit, which will ensure that it will always pay pay for mortgage or rent. Across Britain, the figure is anyone on out-of-work benefits to be in work rather one in 20 families. In the face of the changes the than out of work. Government are making to our economy, families across In conclusion, the Budget deals with our fiscal overstretch Britain are struggling to make ends meet. That is vital and promotes growth in tandem with other Government to our economic recovery because, as we all know, policies. I commend it to the House. credit is key to that recovery. Recently released figures show how consumer confidence is falling. People are not buying and spending in the way that our economy 6.49 pm needs them to if it is to recover, but we should care Stella Creasy (Walthamstow) (Lab/Co-op): I share about that and about personal debt not only because of other Members’ pleasure in talking in a debate that has the figures and the economic conditions but because had so much heat and also the light of the maiden millions of families now live with the fear of debt. speech made by my hon. Friend the Member for Barnsley Half of all British households are worried about their Central (Dan Jarvis). debts and how they are going to pay them. Some 44% of I want to speak about a question that has been households find that there is too much month at the end puzzling me for some time. How can the Government of their money and try as they might they cannot make be so keen to show that they are tough on the national what they earn cover what they need to spend. The debt yet so blind to the growing crisis of personal debt problem is only going to get worse. In a recent survey, that their policies are stoking? Families across Britain 43% of people said that they expected their personal today will have listened to the Chancellor and wondered financial situation to deteriorate over the next six months. if he really understands the financial pressures they This is not about buying new TVs or fancy holidays—it face—if he really has, as he said, done all he can to help is about families struggling to feed their kids, pay their them—because of the perfect storm of challenges hitting bus fares or keep their car going so they can get to work. millions of homes across the country. Thanks to the It is about people having to cut corners or shift money VAT rise that he introduced, average families will pay from one credit card to another, chasing deals. It is an extra £300 to £450 a year in VAT and pensioners will about people worrying about paying their mortgage, pay an extra £275. Also, the benefits that help many affording school uniforms, arguing about debt and suffering families, such as tax credits and child benefit, are no sleepless nights. It is about people wasting time applying longer there for them. That is a key concern for many of for jobs when so many jobs no longer exist. my constituents who have large families and who just I judge today’s Budget by what it will do to address tip into the higher tax bracket because of the London those problems and to help families across Britain to weighting on their wages. make ends meet, not least because 20% of those who Thanks to the Chancellor’s cuts, our economic recovery say they are struggling blame the recent tax rises for is stalling, which is why 8% of our working-age population that. As the Institute for Fiscal Studies has said today, is now unemployed. That is the highest level since 1994 the Budget is giving with one hand and taking away lots and is set to rise further. Those people are in a job with the other. The crippling impact of the rise in VAT market in which 10 people are chasing every job and the will more than cancel out any change in the income tax situation is worse in London, with nearly 13 people threshold. Rather than offering corporation tax cuts to chasing every job in my constituency. As a result of the big business, we need to do more to get jobs and growth cuts in the public sector, 130,000 people lost their job back into our economy. We need to put the needs of last year and another 170,000 families have members those families first but instead the Government are who are on redundancy notices. Buried in today’s papers privatising personal debt. are predictions that another 130,000 people will be At a time when people need help accessing credit to made unemployed next year. Even those who are managing keep a roof over their head, the Government are taking to stay in work are getting less because of the public away their options for help, with potentially disastrous sector pay freeze. The consumer prices index and the consequences. They are taking away the social fund and retail prices index are rising, reflecting the growing cost capping the number of crisis loans for living expenses to of living as clothes, food, energy and travel all cost more. just three a year, at a time when even more families are We are already seeing the impact of those problems. struggling. According to the Consumer Credit Counselling Service, I welcome the support that the Government have London has the highest demand in the country for debt given for credit unions, but it will take a generation for advice. Nationally, half of its clients gave unemployment them to become regarded as a serious, mainstream way or reduced income as the reason for their debt problems. for families across the country to access credit. As we all In 2008-09 there were twice as many crisis loan applications know from our surgeries and our conversations on the as in 2006-07 and half of those applicants made two or street, in these difficult economic circumstances, our more applications. Barnardo’s has reported a rise of banks are refusing to lend to businesses and individuals. 20% in the number of applications for its emergency The truth is that, with no real help in the Budget, there loans for families and the UK now has one of the is very little option for many in our communities apart highest levels of personal debt of any country in the from the high-cost credit market, one of the few areas world. of our economy that is growing under this Government. There are 60 million credit cards in circulation in our Legal loan sharks are profiting from the perfect storm country, for 14% of which customers can afford to of rising living costs and falling wage packets for families make only the minimum payment. We should be extremely across the country. Those people need our help now, not alarmed by what some people are using their credit in the future. 1051 Budget Resolutions and Economic 23 MARCH 2011 1052 Situation Already, a quarter of payday loan customers cannot with the cost of living. If they will not listen to me, borrow from anyone else. They are sitting targets for perhaps they will listen to a famous lady who I know such companies, whose business models rely on locking has been an inspiration to many Government Members. people into borrowing at an extortionate yet legal rate, She once argued that if a person could understand the so that what seems like a short-term solution to financial problems of running a home, they were closer to problems quickly becomes a long-term debt. We know understanding the problems of running a country. The that there has been a fourfold increase in payday lending Budget shows that the Government understand neither, since the recession began, and that due to a lack of and the British people will suffer all the more for it. regulation in the market in the UK, The Money Shop, Wonga, Provident, BrightHouse and other companies Chris Williamson (Derby North) (Lab): Does my are expanding across the country at an alarming rate. hon. Friend agree that at a time when so many more Indeed, they have already pointed to the Government’s people in society will face huge debts, it is wrong for policies as increasing their customer base. Derby city council to cut the welfare rights and debt The problem will only get worse, as the Institute for advice provision for local people in my city? Fiscal Studies predicts that households’ real incomes will be lower than they would have been without the Stella Creasy: My hon. Friend makes an important recession. The Governor of the Bank of England predicts point. There are families struggling to understand what that real incomes will stagnate because of the weak options are open to them. It is vital to support debt condition of the labour market. That means that there advocacy services. That is why I proposed that in my are likely to be more and more families in the year Consumer Credit (Regulation and Advice) Bill and why ahead finding that they cannot keep their heads above it is all the more pity that the Government sought to water financially, but the Government have yet to lift a delay action on that measure— finger to help them. Even if the Government will not do anything that the Office for Budget Responsibility says 7pm will increase growth in the economy—we know that the The debate stood adjourned (Standing Order No. 9(3)). plans put forward today have already been factored into the OBR’s growth predictions—they could at least take Ordered, That the debate be resumed tomorrow. action on the cost of credit. Back in February, I warned of the problem, as Members Business without Debate across the House called for a cap on the cost of credit. The Government sought to do what they could to delay taking action. Today, I am giving notice that I will be PRIVATE MEMBERS’ BILLS seeking support for a similar measure in response to the Motion made, Budget. We can learn the lessons of windfall taxes that That, notwithstanding the provisions of Standing Order No. 14(4), targeted the behaviours of particular companies. I want Private Members’ Bills shall have precedence over Government the Budget to review whether the set of companies that business on 9 September 2011, 21 October 2011, 25 November I am talking about ought to have their tax systems 2011 and 20 January 2012.—(Bill Wiggin.) changed to discourage them from behaving as they do. If the Government will not regulate them, perhaps it is Hon. Members: Object. time to use the tax system to deal with legal loan sharks, just as we do with cigarettes and their toxic impact on our communities. PETITIONS I hope to secure support from across the House for making such a measure part of the Budget, and to Child Health challenge the Government not to continue to sit on their hands when there are growing levels of personal debt crippling families in our communities. Introducing 7.1 pm such a measure in the Budget could, for some families, Andrea Leadsom (South Northamptonshire) (Con): be the difference between getting into hundreds of The petition states: pounds of debt and thousands of pounds of debt. That The Petition of Staff and Pupils of Hackleton Church of could be a massively welcome relief for the families who England Primary School, are looking at today’s Budget and finding little to help Declares that just over eight million children die every year them to make ends meet, and who are therefore having before their fifth birthday, mostly from preventable causes like to turn to such companies. diarrhoea and pneumonia; that ensuring that proven, cost-effective, preventative measures such as immunisation and breastfeeding We know that debt in itself can become a barrier to are available at family and community level can save millions of finding employment, as the emotional consequences these lives; that, where child health is prioritised, in countries and financial penalties become too much to bear. If we such as Malawi, there are real and long-lasting results, showing do not act to protect the poorest communities from that change is possible; and notes that the petitioners believe that unaffordable credit measures, we will all pay through global leaders must prioritise child health and end these unnecessary higher welfare bills, lower spending and a lack of growth deaths. in the economy. I hope that the Chancellor and his The Petitioners therefore request that the House of Commons Treasury team are listening to the needs of those families, urges the Secretary of State for International Development to and I hope that the Government will finally act to end widen the Government’s approach on maternal and newborn legal loan sharking, so that we can at least get some health in the developing world to include child health. good news out of today. I do not believe that they have And the Petitioners remain, etc. done all that they can to help families who are struggling [P000906] 1053 Business without Debate 23 MARCH 2011 1054

Hospital Services (Shropshire) Cheshunt Urgent Care Centre Motion made, and Question proposed, That this House 7.2 pm do now adjourn.—(Stephen Crabb.) Glyn Davies (Montgomeryshire) (Con): I bring to the Floor of the House of Commons today a petition in the 7.4 pm names of Donna Benbow and Helen Jervis, both young mothers, both constituents and both concerned about Mr Charles Walker (Broxbourne) (Con): It is a great the movement of maternity and other services from the honour to speak on the Adjournment this evening—we Royal Shrewsbury hospital to the Princess Royal hospital have had the Budget today, so the eyes of the nation are at Telford. upon this place. By way of background, I should explain that the Two years ago, I was involved in a fantastic community Shrewsbury and Telford Hospital NHS Trust which campaign to bring an urgent care centre to Cheshunt. I serves Shropshire and mid-Wales proposes a reconfiguration was joined by more than 3,000 constituents in a letter- of the service that it currently provides. The petition is writing campaign to the primary care trust. We had a supported by 3,745 names. The case is also supported number of public meetings, with the car parks overflowing by more than 800 people who attended public meetings. and many hundreds of constituents making their views Another constituent, Sally Jones, has contributed thousands known. The campaign culminated when I, along with of names to a petition that is to be presented by my hon. the chief executive and the leader of the council, visited Friend the Member for Shrewsbury and Atcham (Daniel the then Secretary of State for Health, the right hon. Kawczynski). Member for Kingston upon Hull West and Hessle (Alan The petition states: Johnson), at the Department of Health. It was a true The Petition of residents of Montgomeryshire, community campaign. If the big society means anything, Declares that the petitioners oppose plans to move the Special that is its basis: people coming together from across a Care Baby Unit, the Children’s Ward and some maternity services community and joining in one voice to bring a much-needed from Shrewsbury to Telford. facility to the constituency. The Petitioners therefore request that the House of Commons Since the centre arrived in October 2009, it has been urges the Government to take all possible steps to prevent these fabulously well received. It is estimated that 400 people services being moved from Shrewsbury to Telford. a week would use it at most, but in some weeks we have And the Petitioners remain, etc. had 700 people voting with their feet by coming to that [P000907] Hospital Services (Shropshire) GP-led urgent care centre. It really is at the heart of the community. The reason so many people choose to use 7.3 pm the facility is that it is open 12 hours a day, seven days a Daniel Kawczynski (Shrewsbury and Atcham) (Con): week, from eight in the morning to eight at night. Like the petition of my hon. Friend the Member for Unlike many GP surgeries, it does not close for lunch Montgomeryshire (Glyn Davies), my petition revolves and is open on Saturdays and Sundays, when people around the concerns of local constituents about the can use a medical facility because they are not at work move of maternity and paediatric services from the in London. Royal Shrewsbury hospital to Telford. In the six years Despite that enormous success, I was horrified to that I have been the Member of Parliament, I have learn a few months ago that the PCT was not happy never received such a large number of signatures—more with the centre’s performance. I do not need to tell you, than 29,000—which reflects the huge objection to the Madam Deputy Speaker, that being a Member of proposals, in conjunction with the opposition of paediatric Parliament over the past three years has been fairly consultants. For the board to try to move maternity and challenging, but one of the bright spots of my career paediatric services away from Shrewsbury to Telford has been walking around my constituency and being would be highly flawed and would fly in the face of all stopped by people saying, “Charles, we are so pleased Government guidelines. we have the urgent care centre. It was so much needed in The petition states: this part of the borough. Thank you so much for the The Petitioners therefore request that the House of Commons campaign you led.” It has been enormously gratifying urges the Government to take all possible steps to prevent these and satisfying to get that level of feedback. services being moved from Shrewsbury to Telford. The PCT came to the House to meet Hertfordshire Following is the full text of the petition: Members and I had my turn to chat with them about [The Petition of residents of Shrewsbury and Atcham, the issues relevant to Broxbourne. After 10 minutes of Declares that the petitioners oppose plans to move the pleasantries I asked, almost off the cuff, “Of course, Special Care Baby Unit, the Children’s Ward and some you’re not thinking of closing the urgent care centre, are maternity services from Shrewsbury to Telford. you?” The reply was, “I’m afraid, Charles, that that is The Petitioners therefore request that the House of one of the options on the table.” I am normally a Commons urges the Government to take all possible steps mild-mannered Member, but I am afraid that on that to prevent these services being moved from Shrewsbury to occasion I blew up. I think that I swore. Indeed, I know Telford. that I swore. I am ashamed of my behaviour, but it And the Petitioners remain, etc.] demonstrates how passionately I feel about the centre. [P000908] Mr David Burrowes (Enfield, Southgate) (Con): I pay tribute to my hon. Friend for his passion and commitment to the urgent care centre and for the joint campaign run in Cheshunt and Enfield for the retention of a fully functioning accident and emergency department at Chase 1055 Cheshunt Urgent Care Centre23 MARCH 2011 Cheshunt Urgent Care Centre 1056

Farm hospital. Does what has happened to the urgent On page 8, it goes on to state: care centre not highlight the importance of the Secretary “In addition, perceived poor access to primary care in and of State’s decision to encourage us all to think again around the area served by Cheshunt must be addressed.” about options other than the Barnet, Enfield and Haringey Notice the emphasis on “perceived”. It is not perceived strategy, which would lead to the downgrading of not poor access, however; it is real poor access. If it was only Chase Farm hospital in Enfield, but, as predicated, perceived, hundreds of my constituents would not go to an urgent care centre there? the urgent care centre. Mr Walker: My hon. Friend makes an excellent point. On pages 11 and 12, the report states: He is at the forefront, along with my hon. Friend the Member for Enfield North (Nick de Bois), of the campaign “The need to improve access to primary care in the Cheshunt to save Chase Farm hospital’s A and E, and I am always area has been recognised and steps are being taken in conjunction with the Clinical Executive Committee (CEC) to support and proud to join him outside those gates, making the performance manage those practices”— argument for a fully functioning A and E service there. The PCT has told me that it believes that the GP-led not a practice, but those practices— urgent care centre is treating inappropriate cases—whatever “in the bottom 10% nationally in terms of patient’s perceived those are—and that people going there should be going access.” to their GPs. It asks why it should have to pay for that Quite frankly, that is not good enough. treatment twice. Of course, they should not pay for it twice, but I always believed that the money should I became even more concerned about the situation follow the patient, not the GP who does not deliver the when I went on to read that it is local GP commissioners service. My constituents use the urgent care centre so who are putting pressure on the PCT to close our fully, because many—not all, but many—GP practices successful GP-led urgent care centre. in my constituency do not deliver on their promise, or On page 9, the report states: live up to their end of the deal, to provide a full GP “Local GP commissioners do not support the configuration service to them. So my constituents vote with their feet. and have confirmed that they would not wish to commission GP surgeries close for lunch, early in the evening and UCCs as currently configured at...Cheshunt in the future.″ at weekends. If people want an appointment, they have On page 12, it states: to call up on the morning that they want it, only to be told, “We haven’t got any today, but if you want to “The view of the GP Practice-Based Commissioning leads in the localities is that these needs are best addressed directly with come and see us tomorrow try calling us tomorrow.” the practices rather than by way of additional services.” That is not acceptable, and my constituents are not going to sit at home and wait to be treated like that day But why are the practices not addressing those needs after day; they are going to walk to the urgent care now? centre and get treated there. What really upsets me is The PCT has said, with great fanfare, that it is that the beacon of success in our constituency—the one providing additional services and support to GPs to that sees up to 700 people a week—now faces closure, help them to improve. Of course, that is very welcome. while the GPs are not facing the necessary censure for However, given that it is providing new telephone systems, some of their practices in delivering services to my automated self-check-in screens, waiting room plasma constituents. screens, web-based online appointments systems and I discovered in a PCT board paper that many GP electronic document management systems, my constituents practices in my constituency are in the NHS version of and I want to know what on earth has been going on in special measures, meaning that they are in the bottom these practices for the past 10 years. One thing that GPs 10% of GP practices in the country. That leads me to have not been short of is money, so how have they not ask again, “Why does the urgent care centre, which placed these absolutely critical tools for managing patient delivers a high level of service, face closure?” while GPs, load in their surgeries, with the PCT now having to fund as I said earlier, are not delivering the service that they them? are paid to deliver. If services in my constituency are to improve, we need The PCT says that there was a unanimous decision competition. We need the urgent care centre to set new on behalf of a steering committee to change the use of standards of treatment. If the urgent care centre, which the urgent care centre—at best to make it a minor is driving ever-higher levels of patient care, is shut, what injuries unit, or perhaps even to close it. It says that the incentive will there be for GPs to improve their service decision came about as a result of a meeting with levels? It is incumbent on my local GPs, who are falling various stakeholders and some research—independent behind, either to deliver or surpass that level of care, or research, I was told—by an organisation called Opinion perhaps to make way and allow practices to come into Research Services. Of course, it was not independent the borough that are willing to take up the challenge of research, because it was commissioned by the PCT: it opening 12 hours a day and providing weekend services. paid the bills of Opinion Research Service. I do not Until we reach that stage, the PCT has absolutely no know what went on at that meeting, but I am fairly sure excuse for closing down this urgent care centre. of what did not, which is that those there did not get a full picture of how successfully the urgent care centre Earlier today, the PCT had a meeting where it decided meets the needs of local constituents. to downgrade the urgent care centre to a minor injuries What I did learn is that the GP services in the area unit; it thinks it will get away with that. However, that is leave a lot to be desired. On page 8, the board report not good enough and it will not satisfy my constituents, states: because closing down the urgent care centre and removing “A quarterly patient access survey carried out nationally has the GPs from it removes the incentive for practices in highlighted perceived problems with access and satisfaction with and around the centre that are not delivering to their primary care in the area served by Cheshunt UCC.” patients to improve their services. 1057 Cheshunt Urgent Care Centre23 MARCH 2011 Cheshunt Urgent Care Centre 1058

[Mr Charles Walker] front-line professionals free to innovate and to make decisions based on their clinical judgment and the needs As you can see, Madam Deputy Speaker, I am really of their patients, with the sole aim of improving the very annoyed about this. I thought that I would come quality of care given and the outcomes achieved. here and manage to smile my way through it and be Responsibility for budgets and commissioning care magnanimous, but I simply cannot. For my whole life, I will transfer from managers within the PCTs to clinicians have believed that good practice and success should be in general practice-led consortia. Patients will receive rewarded. I thought that that was just the way things health care that is tailored to their community and their were—that an organisation that saw an urgent care personal circumstances. Our plans will radically simplify centre that was delivering not 400 patient outcomes a the NHS. Two layers of management—strategic health week, as envisaged, but 600 or 700, would feel that it authorities and PCTs—will no longer be necessary. We was a success story that deserved to be built on. By anticipate a one-third reduction in administration costs, accident or design, our PCT has stumbled on a formula saving the NHS £5 billion by the next election and that works and meets the needs of the local community, £1.7 billion in every year after that. Every single penny but instead of building on that, it is pulling the rug from of those billions of pounds will be reinvested in front-line underneath it, and I believe that it is being pressured by services. some GP practices in my constituency and future GP commissioners to do so. There are now 177 pathfinder consortia across England, covering 35 million people—more than two-thirds of I will conclude, after my 15 minutes, by saying that the population. Those consortia are taking a lead in there is only one set of vested interests that I represent rejuvenating local services, cutting out waste and putting in this place. It is not the PCT’s interests or the GPs’ the needs of patients before the needs of the system. interests—it is the interests of my constituents, more There are now three pathfinder consortia in Hertfordshire. than 520 of whom turned up, at about nine days’ notice, The East and North Hertfordshire GP commissioning at a public meeting that I held last Thursday to say to consortium covers part of my hon. Friend’s constituency. the PCT: “No, we want to keep our urgent care centre.” The PCT has got it wrong, it needs to listen, and we Clinical leadership will go hand in hand with greater need that urgent care centre in Cheshunt. local democratic accountability. Under “any willing provider”, an increasing number of independent sector and social enterprise organisations will deliver NHS 7.18 pm services. Unlike now, local authorities will have the power to scrutinise all providers of NHS-funded services. The Minister of State, Department of Health (Mr Local authorities will be able to require the provider to Simon Burns): I begin by congratulating my hon. Friend present information and to appear at scrutiny meetings the Member for Broxbourne (Mr Walker) on securing to hold them to account. what is a very important debate for him and his constituents. I commend him for the commitment that he has shown, Already, 143 local authorities—almost 90% of those as illustrated during his high-powered speech, in in England—have signed up to be health and wellbeing campaigning on health issues for his constituents to board early implementers, including Hertfordshire county ensure that they get first-class, quality care. I also take council. The make-up of health and wellbeing boards this opportunity to recognise the hard work and dedication will be left to their own discretion, but will include shown by NHS staff in his constituency. Their dedication, representatives of GP consortia, directors of public expertise and drive do so much to improve the health health, adult and children’s services, representatives of and well-being of his and other hon. Members’constituents HealthWatch, representatives of the NHS commissioning on a daily basis. This Government will support and board and locally elected councillors. As well as preparing empower them to provide his constituents with health a joint strategic needs assessment, they will have to outcomes that are consistently among the very best in draw up and deliver a strategy to deliver the requirements the world. set out in that assessment. In short, health and wellbeing boards will promote integrated working across the NHS, As part of the Government’s commitment to the public health and social care, and will hold NHS services NHS, we are consistently increasing the amount of to account. That will lead to better, more accountable money we provide to local organisations. Total revenue services for local people. investment in the NHS in 2011-12 will grow to more than £102 billion. The allocations announced on The Government are clear that in a patient-led NHS, 15 December will provide primary care trusts with any changes to services must begin and end with what £89 billion to spend on the local front-line services that patients and local communities want and need. Until matter most. That is an overall increase of £2.6 billion, the new system is in place, we expect PCTs to follow or 3%. Of that, Hertfordshire PCT will receive best practice in ensuring that local communities are £1.7 billion—a cash increase of £47.7 million, or 2.9%. fully engaged in such decisions. When it comes to Before turning to the specific issue of the Cheshunt urgent care, it is vital that local services are coherent urgent care centre, I will set out the context of our and easily accessible around the clock. However, we plans to modernise the NHS and bring considerable have again been clear that decisions on the form that improvements to the health care experienced by my they should take are best made locally, in the light of hon. Friend’s constituents. We believe that local NHS local needs. services should be centred around the patient, led by In the Broxbourne area, there are 12 GP surgeries, local clinicians and free from political interference, either four of which are in Cheshunt. The area also has an from this House or from the various levels of NHS out-of-hours GP service provided by Herts Urgent Care, bureaucracy.To this purpose, we have set out our proposals based at the Cheshunt community hospital. The community to liberate the NHS from central control. We will set hospital also provides out-patient clinics and a range of 1059 Cheshunt Urgent Care Centre23 MARCH 2011 Cheshunt Urgent Care Centre 1060 community services. There are 22 pharmacies in the how it could improve access to high-quality primary borough, nine of which are in Cheshunt and one of care, to compensate for the loss of the urgent care which opens for extended hours. centre. On the specific matters that my hon. Friend raised As my hon. Friend the Member for Broxbourne is regarding the Cheshunt urgent care centre, I understand aware, Hertfordshire PCT published its board papers that in 2007, the former two Hertfordshire PCTs, in on the issue on 18 March. I understand that the PCT partnership with the two Hertfordshire acute trusts, met earlier today to consider the recommendations and held public consultations on a health strategy, “Delivering has decided to uphold them and not recommission the quality healthcare for Hertfordshire”. The strategy was urgent care centres in their current form. Instead, it will intended to improve access to urgent care services in consider recommissioning a minor injuries unit at Cheshunt. Hertfordshire, so that people with urgent but not life- I accept, as my hon. Friend made clear, that the threatening conditions could be redirected from hospital Cheshunt urgent care centre is well regarded by local accident and emergency departments to receive more people. However, the provision of services is a matter appropriate treatment more quickly and closer to home. for the local NHS. As he understands, it is not for In response to the public consultation, the PCTs Ministers to interfere and micromanage the day-to-day agreed to piloting urgent care centres at both Cheshunt business of the NHS. and Hertford, on the basis that they would be evaluated My hon. Friend mentioned access to general practitioners before longer-term decisions were made about their in the Cheshunt area. To reiterate what he said, the future. It is crucial to remember that they were pilot evaluation panel recommends that the PCT considers schemes, and it was always understood that after a how it can improve access to high-quality primary care period of time had passed, so that experience could be to compensate for the loss of the Cheshunt urgent care gained, they would be evaluated before those longer-term centre. The PCT has upheld that recommendation. I decisions were taken. understand that the PCT has a programme of measures The urgent care centres were established as part of a to improve access to general practice, to which he 12-month pilot project between January and December referred. I am sure he will agree that it is important to 2010, with the specific objective of relieving pressure on pursue and achieve that. local accident and emergency services. The primary purpose and objective was to reduce the number of Mr Walker: I would argue that the PCT ought to have patients seen at A and E by 20,000 a year, by providing been improving the performance of GPs in my constituency local people with direct access to urgent care centres. for the past decade. It has arrived a little late at the The purpose of those centres is to see and treat people party. with urgent, but not life-threatening, illnesses such as sprains, strains, broken bones, and minor burns and Mr Burns: My hon. Friend makes an extremely valid scalds in a local community setting, allowing A and E point. It is sad that only in the last few months have this departments to concentrate on life-threatening emergencies. Government been able to come to grips with some of Hertfordshire PCT commissioned an independent the previous Government’s failings in making the local research organisation, Opinion Research Services, to health service more accountable to the needs, wishes evaluate the success of the pilot centres at Cheshunt and requirements of local people. He and I will be and Hertford, the latter in the constituency of my hon. totally in agreement on that. That is why I believe that Friend the Member for Hertford and Stortford (Mr Prisk). the core of our health service modernisation programme— I understand that during the evaluation process, the putting patients at the heart of the delivery of care—is views of the general public, NHS staff and local GPs so important. I am sure that he and I agree that that is were taken into account. Evidence was then submitted an appealing principle from which to work. to an evaluation panel consisting of local GPs, local As my hon. Friend said, the PCT has established a councillors, staff from local authorities and representatives funding initiative for GP practices to support the Improving of the PCT. Access programme, which includes funding for new When the evaluation panel met on 17 January this telephone systems, improved appointments and check-in year, it came to the unanimous view that urgent care systems, and medical equipment. The programme continues centres were not achieving their aim of diverting significant to be a key area of work for PCT staff, who will work numbers of patients from A and E. I remind the House closely with GPs to ensure that it is implemented, and that that, of course, was the primary purpose of the that local people see improvements. pilot scheme when it was started at the beginning of I have been advised—I hope this reassures my hon. January 2010. Instead, considerable numbers of those Friend—that the latest GP patient survey results show using the urgent care service were seeking advice and that four GP surgeries in his constituency scored 91% or treatment usually provided by GPs, for conditions such above in terms of satisfaction with care. Two of those as raised temperatures, sore throats and headaches. It practices—the Cromwell medical centre, which achieved was never the intention that the urgent care centres a 92% rating, and the Warden Lodge medical practice, would have a primary care focus. They were established which achieved 93%—are in the Cheshunt area. to relieve pressure on local A and E services and to treat I am assured that the PCT will hold discussions with people with urgent but not life-threatening illnesses. East and North Hertfordshire GP consortium and involve The evaluation panel recommended that the pilot it fully as it conducts that further investigation. I am centres should not continue in their current format. also assured that the PCT will have conversations with Instead, it recommended that the PCT should consider the public and other stakeholders, including my hon. recommissioning activity through one or two minor Friend if he wishes, to gain further understanding of injuries units. It also recommended that the PCT consider the needs of the local population, and to explain to 1061 Cheshunt Urgent Care Centre23 MARCH 2011 Cheshunt Urgent Care Centre 1062

[Mr Simon Burns] further the possibilities of setting up a minor injuries unit. I understand that the PCT will test the feasibility potential users of the services what a minor injuries unit of the new unit with providers. can provide. In addition, I am advised that the PCT will Question put and agreed to. strengthen its performance management of GP practices to address the problems that some local people have experienced. I fully understand my hon. Friend’s concerns, 7.33 pm but the board has decided that the PCT needs to explore House adjourned. 1063 23 MARCH 2011 Deferred Division 1064

Deferred Division Hammond, rh Mr Philip McCartney, Jason Hammond, Stephen McCartney, Karl Hancock, Matthew McDonnell, Dr Alasdair SECTION 6 OF THE EUROPEAN UNION (AMENDMENT) Hands, Greg McIntosh, Miss Anne ACT 2008 Harper, Mr Mark McLoughlin, rh Mr Patrick Harrington, Richard McPartland, Stephen That this House takes note of draft European Council decision Harris, Rebecca McVey, Esther EUCO 33/10 (to amend Article 136 of the Treaty on the Functioning Hart, Simon Menzies, Mark of the European Union with regard to a stability mechanism for Haselhurst, rh Sir Alan Mercer, Patrick Member States whose currency is the euro) and, in accordance Hayes, Mr John Metcalfe, Stephen with section 6 of the European Union (Amendment) Act 2008, Heald, Mr Oliver Miller, Maria approves Her Majesty’s Government’s intention to support the Heath, Mr David Mills, Nigel adoption of draft European Council decision EUCO 33/10. Heaton-Harris, Chris Milton, Anne The House divided: Ayes 310, Noes 29. Hemming, John Mitchell, rh Mr Andrew Division No. 236] Herbert, rh Nick Moore, rh Michael Hermon, Lady Mordaunt, Penny AYES Hinds, Damian Morgan, Nicky Hoban, Mr Mark Morris, Anne Marie Adams, Nigel Coffey, Dr Thérèse Hollingbery, George Morris, David Aldous, Peter Collins, Damian Holloway, Mr Adam Morris, James Amess, Mr David Colvile, Oliver Hopkins, Kris Mosley, Stephen Andrew, Stuart Crabb, Stephen Horwood, Martin Mowat, David Arbuthnot, rh Mr James Crockart, Mike Howell, John Mulholland, Greg Bacon, Mr Richard Crouch, Tracey Hughes, rh Simon Mundell, rh David Bagshawe, Ms Louise Davies, David T. C. Huhne, rh Chris Murray, Sheryll Baker, Norman (Monmouth) Hunt, rh Mr Jeremy Murrison, Dr Andrew Baldry, Tony Davies, Glyn Hunter, Mark Neill, Robert Baldwin, Harriett de Bois, Nick Huppert, Dr Julian Newmark, Mr Brooks Barclay, Stephen Dinenage, Caroline Hurd, Mr Nick Nokes, Caroline Barker, Gregory Djanogly, Mr Jonathan Jackson, Mr Stewart Norman, Jesse Barwell, Gavin Doyle-Price, Jackie James, Margot O’Brien, Mr Stephen Bebb, Guto Duddridge, James Javid, Sajid Offord, Mr Matthew Beith, rh Sir Alan Duncan Smith, rh Mr Iain Johnson, Gareth Ollerenshaw, Eric Bellingham, Mr Henry Dunne, Mr Philip Johnson, Joseph Opperman, Guy Benyon, Richard Durkan, Mark Jones, Andrew Ottaway, Richard Berry, Jake Edwards, Jonathan Jones, Mr David Paice, rh Mr James Bingham, Andrew Ellis, Michael Jones, Mr Marcus Parish, Neil Birtwistle, Gordon Ellison, Jane Kawczynski, Daniel Patel, Priti Blackman, Bob Evans, Graham Kelly, Chris Paterson, rh Mr Owen Blackwood, Nicola Evans, Jonathan Kennedy, rh Mr Charles Pawsey, Mark Blunt, Mr Crispin Evennett, Mr David Kirby, Simon Penning, Mike Boles, Nick Fabricant, Michael Kwarteng, Kwasi Penrose, John Bottomley, Sir Peter Fallon, Michael Laing, Mrs Eleanor Phillips, Stephen Bradley, Karen Farron, Tim Lamb, Norman Pickles, rh Mr Eric Brady, Mr Graham Featherstone, Lynne Lancaster, Mark Pincher, Christopher Brake, Tom Field, Mr Mark Lansley, rh Mr Andrew Poulter, Dr Daniel Bray, Angie Foster, rh Mr Don Latham, Pauline Prisk, Mr Mark Brazier, Mr Julian Fox,rhDrLiam Laws, rh Mr David Pritchard, Mark Bridgen, Andrew Francois, rh Mr Mark Leadsom, Andrea Pugh, John Brokenshire, James Freeman, George Lee, Jessica Randall, rh Mr John Brooke, Annette Freer, Mike Lee, Dr Phillip Rees-Mogg, Jacob Browne, Mr Jeremy Fullbrook, Lorraine Leech, Mr John Reevell, Simon Bruce, Fiona Fuller, Richard Lefroy, Jeremy Reid, Mr Alan Bruce, rh Malcolm Gale, Mr Roger Leslie, Charlotte Rifkind, rh Sir Malcolm Buckland, Mr Robert Garnier, Mr Edward Letwin, rh Mr Oliver Robathan, rh Mr Andrew Burley, Mr Aidan Garnier, Mark Lewis, Brandon Robertson, Hugh Burns, Conor Gauke, Mr David Liddell-Grainger, Mr Ian Robertson, Mr Laurence Burns, rh Mr Simon George, Andrew Lidington, rh Mr David Rogerson, Dan Burrowes, Mr David Gilbert, Stephen Lloyd, Stephen Rudd, Amber Burstow, Paul Gillan, rh Mrs Cheryl Llwyd, rh Mr Elfyn Ruffley, Mr David Burt, Lorely Glen, John Long, Naomi Russell, Bob Cable, rh Vince Goodwill, Mr Robert Lopresti, Jack Rutley, David Cairns, Alun Graham, Richard Lord, Jonathan Sanders, Mr Adrian Cameron, rh Mr David Grayling, rh Chris Loughton, Tim Sandys, Laura Campbell, rh Sir Menzies Green, Damian Lucas, Caroline Scott, Mr Lee Carmichael, rh Mr Alistair Greening, Justine Luff, Peter Selous, Andrew Carmichael, Neil Griffiths, Andrew Lumley, Karen Shapps, rh Grant Chishti, Rehman Gummer, Ben MacNeil, Mr Angus Brendan Sharma, Alok Clappison, Mr James Gyimah, Mr Sam MacShane, rh Mr Denis Shelbrooke, Alec Clark, rh Greg Hague, rh Mr William Maude, rh Mr Francis Simmonds, Mark Clarke, rh Mr Kenneth Halfon, Robert May, rh Mrs Theresa Simpson, Mr Keith Clegg, rh Mr Nick Hames, Duncan Maynard, Paul Skidmore, Chris 1065 Deferred Division23 MARCH 2011 Deferred Division 1066

Smith, Miss Chloe Tomlinson, Justin Williams, Stephen Wright, Jeremy Smith, Henry Tredinnick, David Williamson, Gavin Wright, Simon Smith, Julian Truss, Elizabeth Willott, Jenny Young, rh Sir George Soubry, Anna Tyrie, Mr Andrew Wilson, Mr Rob Zahawi, Nadhim Spelman, rh Mrs Caroline Uppal, Paul Wollaston, Dr Sarah Spencer, Mr Mark Vaizey, Mr Edward Stanley, rh Sir John Vara, Mr Shailesh NOES Stephenson, Andrew Villiers, rh Mrs Theresa Stevenson, John Walker, Mr Robin Bone, Mr Peter Main, Mrs Anne Stewart, Bob Wallace, Mr Ben Campbell, Mr Gregory McCrea, Dr William Stewart, Iain Walter, Mr Robert Campbell, Mr Ronnie Nuttall, Mr David Stewart, Rory Ward, Mr David Carswell, Mr Douglas Paisley, Ian Streeter, Mr Gary Watkinson, Angela Cash, Mr William Percy, Andrew Stride, Mel Weatherley, Mike Chope, Mr Christopher Redwood, rh Mr John Stuart, Mr Graham Webb, Steve Corbyn, Jeremy Shannon, Jim Stunell, Andrew Weir, Mr Mike Davies, Philip Sheerman, Mr Barry Dodds, rh Mr Nigel Sturdy, Julian Wharton, James Shepherd, Mr Richard Donaldson, rh Mr Jeffrey M. Swales, Ian Wheeler, Heather Simpson, David Swayne, Mr Desmond White, Chris Drax, Richard Skinner, Mr Dennis Swinson, Jo Whittaker, Craig Gray, Mr James Stuart, Ms Gisela Swire, rh Mr Hugo Wiggin, Bill Henderson, Gordon Syms, Mr Robert Willetts, rh Mr David Hollobone, Mr Philip Tapsell, Sir Peter Teather, Sarah Williams, Hywel Hopkins, Kelvin Wilson, Sammy Thurso, John Williams, Mr Mark Timpson, Mr Edward Williams, Roger Question accordingly agreed to. 257WH 23 MARCH 2011 Public Sector Funding 258WH

generation of volunteers. Its vision is to make volunteering Westminster Hall part of the fabric of everyday life. In the past 10 years, TimeBank has helped and encouraged 30,000 people Wednesday 23 March 2011 into volunteering. For example—this is a good example to consider at the moment—in 2004, TimeBank asked people to back London’s bid for the Olympics and [DAVID AMESS in the Chair] 14,000 potential volunteers responded. That has now risen to 100,000 people who want to volunteer for the Public Sector Funding Olympics. In the same year, it recruited 1,900 people Motion made, and Question proposed, That the sitting aged 20 to 35 for volunteering opportunities with hospices. be now adjourned.—(Brooks Newmark .) In 2008, 1,400 parent volunteers were recruited to mentor other parents for Home-Start. TimeBank offers tailored 9.30 am support to anyone interested in volunteering or running Barbara Keeley (Worsley and Eccles South) (Lab): I a dedicated help desk and website. The organisation has am pleased to have secured a debate on the important established good practice and provides space for local, topic of the effects on the voluntary sector of reductions regional and national sharing of experience. It runs a in public sector funding. I am also pleased to serve dedicated help desk and website to signpost people under you as Chair, Mr Amess. towards volunteering opportunities and to increase In the current economic context, a thriving community accessibility and engagement. and voluntary sector is vital. Locally, people with debt TimeBank recently launched something called the problems need their citizens advice bureau, carers need volurater, which is a forum like TripAdvisor that allows their carers centre and people need support from people to review their volunteering experience. TimeBank organisations that work with children with special needs says that the cancellation of its funding from the Office or with people who have long-term conditions. The for Civil Society means that its support functions will previous Labour Government have a proud record of be severely undermined. The staff and resources for support for a stronger voluntary sector. We doubled the that work have been paid for from the core funding that funding to the sector from £5.5 billion to £12 billion in it receives from Government. All its other funding 2009, and created the first ever Minister for the third streams are ring-fenced for programme or project delivery, sector, with an office putting the third sector at the so the loss of £500,000 of grant funding puts a significant heart of Government. In addition, we gave the third proportion of TimeBank’s work under threat. As I said, sector a strong voice in Government through the Third the volurater is a review tool for volunteers to rate their Sector Partnership Board. volunteering experiences. It aims to help to drive up We also supported social enterprise. At the end of standards in volunteering across the board and to give 2010, there were approximately 62,000 social enterprises volunteers a voice. No other organisation has such a in the UK, contributing at least £24 billion to the tool for volunteers, and it is now under threat. economy and employing 800,000 people. Labour did Junction49 is also under threat. It is a web platform much to boost and encourage volunteering in our aimed at young people that acts as a type of Facebook communities when we were in Government. Some 850,000 for volunteers. It was set up in 2007, and it allows young charity trustees serve on the governing body of a charity, people to share and develop ideas, and to make a and 780,000 paid staff work in the sector to provide difference in their communities by setting up volunteering services and to support and encourage volunteering. projects. Junction49 has supported 1,145 young people, There are also 2.7 million volunteers, on whom many and helped them to volunteer through advice, support small charities rely. For example, my local citizens advice and connecting them with other like-minded people. bureau in Walkden has 20 volunteers a day working TimeBank’s website and newsletter are also at risk. The with staff who are trained debt advisers or are trained website receives 16,000 new visitors a month, and is to offer legal advice. designed specifically to help people to volunteer. The Some 40% of adults report that they have volunteered website includes ideas and inspiration, such as a blog, a formally at least once in the past 12 months, with 25% postcode search for local opportunities and a “how to volunteering formally at least once a month. However, get started” section. There is also a help desk that is despite the coalition Government’s rhetoric about the contactable by phone or e-mail, with a dedicated staffing big society, cuts in funding from central and local resource to answer questions about volunteering and government are damaging the sector. It has been estimated help people along the way. TimeBank has a monthly that the voluntary sector is facing cuts of £1.1 billion electronic newsletter that is sent out to 300,000 volunteers just this year, rising to more than £3 billion next year. whom it calls time givers, and it includes ideas and tips There are also real fears for the capacity of the voluntary about volunteering. Regular social media activity—the sector. At a time when the Government are talking type of things I have been describing—drives people to about localism and creating opportunities for charities the website and raises awareness of volunteering issues and community organisations, the sector will almost and best practice. It also helps with recruiting volunteers certainly do less this year than in previous years. and signposting volunteering opportunities. The collaborative website, www.voluntarysectorcuts. TimeBank also runs programmes to match people org.uk, is mapping those cuts. One of them is a grant with volunteer mentors. I shall mention two of those cut of £500,000 from the Office for Civil Society to the that are under threat as a result of the funding cuts. volunteering support organisation, TimeBank. I want TimeBank has worked in partnership with Carers UK to discuss that as an example of what initiatives are to develop a mentoring programme for new carers, who affected when such a cut is made. TimeBank was set often feel overwhelmed by their responsibilities. Those up in February 2000 and was funded by the Home two organisations are providing new carers with access Office and the BBC as a support agency to inspire a new to information and advice from a mentor who has been 259WH Public Sector Funding23 MARCH 2011 Public Sector Funding 260WH

[Barbara Keeley] Jeremy Corbyn (Islington North) (Lab): I congratulate my hon. Friend on securing the debate. Is the real a carer themselves. A groundbreaking TimeBank project problem that the Government do not appear to understand called Shoulder to Shoulder supports ex-servicemen the role of the voluntary sector? It is often professional, and women returning to civilian life who have mental well run, well organised and extremely hard-working. It health problems. More than 20,000 people leave the brings in lots of money from charities and other places, service to return to civilian life each year, and around a but it absolutely relies on basic core funding in order to quarter of those have a mental health problem. One in succeed. The Government seem to confuse it with charitable five of those have a mental health problem resulting good works in small towns, and that model simply does from traumas and injuries that they experienced during not apply to complex, urban areas such as the one that I their service. represent. Another valuable area of work for TimeBank is support for businesses involved in employee volunteering. Barbara Keeley: Indeed. That is right, if there is an Participating organisations include Sky, Virgin, Vodafone, urge, as the Minister has said, to discuss partnerships Sony, T-Mobile and even the Cabinet Office. Years ago, between Government, business and civil society. I talked I worked on such a project with the organisation, Business earlier about employee volunteering from business in in the Community. I arranged community development the voluntary sector. That has to be arranged, however, assignments for staff from organisations and corporate because there is a big, wide cultural gap between the companies, such as IBM and Marks and Spencer. Support private sector and the voluntary sector. We cannot just for that type of volunteering from business is needed if leave a new business volunteer to flounder in an such things are to happen. I know how valuable that is, organisation. I used to arrange business volunteering as both for the employee who volunteers and for the part of a job that I did in the past. I know that someone community organisation for which they volunteer. For needs to be the link in-between, so I very much agree instance, in 2008, TimeBank organised T-Mobile employees with my hon. Friend. to help young people who are not in education, employment or training set up their own projects and design a The Minister described one strand of action for the mobile application to tackle a social issue. That work Government as could also be under threat. “encouraging more social action in our communities”.—[Official In December 2010, the Minister posted a message on Report, 28 February 2011; Vol. 524, c. 132.] Twitter congratulating TimeBank on its 10th anniversary. How on earth is that going to happen if we cut away the Cutting one sixth of its funding three months later is infrastructure of organisations such as TimeBank? hardly the right way to support an organisation with a 10-year track record of innovative support for volunteering. Jim Shannon (Strangford) (DUP): I congratulate the TimeBank’s chief executive has said: hon. Lady on securing the debate. She has very clearly “This decision will hugely undermine the Government’s vision outlined the case for volunteers in our society. Every for a Big Society…For the past decade we have made an important one of us in the Chamber this morning will be aware of contribution to mobilising an army of 300,000 volunteers and to improving the quality of volunteering across the board. Without the work of volunteers. It seems as if Ministers are this vital core funding we will not be able to continue to deliver diverting money to sports, heritage and arts, and away the level of service that we have based our reputation on and will from voluntary and charity groups and those who do have to considerably reduce our activities and staff as a result.” good work in the community. Does she share my concern Emma Reynolds (Wolverhampton North East) (Lab): that there are more worthy cases in relation to the I have an example in my own constituency. Kids in voluntary and charity work that is done in the community? Communication is a youth media group that operates KicFM, and it has recruited 5,000 volunteers in the past Barbara Keeley: Indeed. I said in my opening paragraph decade. I urge the Minister to look at that group with that in the current economic context issues such as debt some urgency. It will run out of funding at the end of advice and other ways in which people volunteer in next week. He has previously mentioned that 50% match communities and societies are crucial. Volunteering in funding might be available. If we are going to create a sports organisations is important, and sport and culture big society and sustain it, we need such organisations to are important too, but in the current context the social recruit volunteers. By rolling back the funding, the function of volunteering roles are vital, so I agree with Government are decreasing the number of volunteers in the hon. Gentleman. society, which goes against the whole spirit of the big society. I shall return to the question of how the Government Barbara Keeley: Indeed, and I thank my hon. Friend will encourage more social action if they close off for her intervention. I personally believe that some of financial support to those small—and they are small—but the decisions to cut grant funding to organisations that vital charities that support and encourage people to support volunteering, such as TimeBank and the one volunteer. I just want to touch briefly on support for that my hon. Friend has just mentioned, are difficult to carers, which is one strand of the work that TimeBank understand, because Government Ministers have talked is seeking to do, and which is under threat. Support for about encouraging social action and the need to support carers is vital and will become even more so, given the the community and voluntary sector. In fact, we recently cuts and uncertainty that are now affecting us as a had a debate on the big society in the House. The result of proposals in the Health and Social Care Bill. Minister said: Schemes such as the one developed by TimeBank are “I really believe that we have barely scratched the surface of essential, and working with Carers UK to put new what can be achieved in this country if we strike a more effective carers in contact with experienced carers could be a and balanced partnership between Government, business and lifeline. Such a scheme help the new carer to care more civil society”.—[Official Report, 28 February 2011; Vol.524, c. 131.] effectively, which is important in our communities. 261WH Public Sector Funding23 MARCH 2011 Public Sector Funding 262WH

Chris White (Warwick and Leamington) (Con): With note to the Chair beforehand if they wish to speak. regard to TimeBank, is the hon. Lady aware that it is Certainly, when I am chairing proceedings, those hon. seeking to set up an initiative whereby MPs can bank Members will receive preference when I call speakers. If their volunteering? Would she support that initiative, as an hon. Member pops in, makes an intervention and I do? clears off before the end of the debate, that is to be deprecated—hon. Members have to stay for the whole Barbara Keeley: I would certainly support that, but I debate. Finally, I know which hon. Members who wish cannot imagine how the hon. Gentleman thinks that to speak, but I do not know whether other hon. Members TimeBank will set up new projects if his Government have come to the Chamber to make speeches or are cutting away its infrastructure funding. It is astonishing interventions. There are five Government Members and that he should raise that today. eight Opposition Members waiting to speak, and the winding-up speeches will begin at 10.40 am. As hon. Chris White rose— Members have taken the trouble to be here, I would like to call everyone. However, they can do the maths as well Barbara Keeley: No, let us leave it at that. The Minister me, so it is up to them to share the time out. and hon. Members have to understand that we cannot remove £500,000 of an organisation’s funding and then 9.48 am expect it to carry on with new initiatives. Clearly, it Tony Baldry (Banbury) (Con): I think, Mr Amess, would not be able to do so. that coming in, making an intervention and disappearing I was discussing the vital scheme that TimeBank is is known as doing a Spink, is it not? setting up with carers. The groups with which TimeBank It is a great pleasure to follow the very thoughtful works are crucial in our society, but carers are in a speech made by the hon. Member for Worsley and special category. Carers who care for more than 50 hours Eccles South (Barbara Keeley). She and I are involved a week are twice as likely to suffer from ill health, while as officers of the all-party group on carers. I think there those who care for a person suffering from dementia or is no one in this Chamber who does not support the stroke disease are even more at risk of ill health. If we work of volunteers and we would all like to see the do not support carers, therefore, we are causing additional maximum amount of volunteering. We all have to accept, health problems in our communities. In my local area, however, that we start from a position of having to there are some 22,000 carers, one in four of whom care manage an enormous budget deficit. Each and every for more than 50 hours per week. day, the Government have to spend £120 million, just How are we to take initiatives if we cut the infrastructure on interest, to service the deficit. I did a calculation the funding for organisations? Last week, the Carers other day. I added up all the money that the Government Identification and Support Bill, which I introduced, give to my constituency through the local district council, was not debated because we spent much of the time the money it gives in grants to Cherwell district council, discussing a string of Bills introduced by the hon. Oxfordshire county council, the Oxfordshire primary Member for Christchurch (Mr Chope). I am sure that care trust and Thames Valley police for the whole of hon. Members who are here on Fridays understand that Oxfordshire, Berkshire and Buckinghamshire. The total that is a common occurrence these days. There are no equates to just 11 days’ worth of interest on the budget new measures to support carers in the Health and deficit. We all have to put this in some sort of context. Social Care Bill, so how will they be supported? Will the I want to make some general comments about local Minister tell us why his Government’s cuts to Timebank government. I have come to the conclusion that the way have been made, as they will cause the potential loss of it operates will have to change radically and fundamentally, a new way to support carers—people who give their up and I shall give the House examples of that. We have so much of their lives caring for family and friends? had a system under which we all pay our taxes, the taxes The debate on funding must focus on the important go to the Treasury, the Treasury allocates money to issue of support for the infrastructure of the voluntary local government, and local governments, from their sector. Organisations such as Timebank are on the front largesse, allocate money to voluntary groups in their line of finding and supporting volunteers for charities, area, as they see fit. Voluntary groups have very much such as hospices and the Olympics, and they help to been rentiers, dependent on the largesse of local government support and mentor carers. Labour’s support helped and what it has chosen to give them. That needs to maintain high levels of participation in volunteering. change considerably. Cuts to the funding of volunteering charities will result First, there needs to be a commitment by local in the organisational cutbacks that I have discussed, government to allow much greater community scrutiny. and which will lead to a decrease in volunteering, not an May I give the House an example of why that is the increase. I hope that the Minister will tell us today, as case? On Saturday, I met with campaigners in Deddington my hon. Friend the Member for Wolverhampton North in my constituency who want to retain their library. As East (Emma Reynolds) encouraged him to do, that he we discussed the situation, it became apparent that we will think again, and that some way can be found to have in Oxfordshire a public library service, but also a reverse cuts which could be damaging to the cause of schools library service, which is operated completely volunteering. separately. That begs the question, why do we need two services? What happens with back office costs? As we Several hon. Members rose— discussed the matter further and began talking about the mobile library, we realised that it was going to Mr David Amess (in the Chair): Order. I have some villages to which, at the same time, the GP surgery—in words of advice. Westminster Hall debates are important, the village that has the library—sends transport to and the proper procedure is for hon. Members to drop a collect people to come into the surgery. 263WH Public Sector Funding23 MARCH 2011 Public Sector Funding 264WH

[Tony Baldry] enterprises and voluntary organisations, and they need to be much clearer about how that should happen. The As the discussion continued, it struck me that, under last example from my constituency is a new social that system, the risk is that the greatest cuts will be enterprise in Banbury that was set up by people who made at the front end—that is, at the service end—yet had been working for many years with offenders at no one has had an opportunity to understand the full Bullingdon prison who were addicted to or had a central costs of running the services. The local authority dependency on drug or substance abuse. They have has not been subjected to complete scrutiny so that been doing excellent work involving ex-offenders in people may make proper value judgments about whether therapy. They have a good, reputable board of trustees, it is ensuring that any spending reductions it has to including some eminent doctors and others, and are make are fairly distributed between it and the services doing a great deal of work with people who voluntarily that it might hitherto have supported. self-refer. However, they could do a great deal more in There is a danger that local authorities will simply the rehabilitation revolution by offering their services to retrench to their statutory obligations and duties, and people who may recently have come out of custody or say, “If we don’t have a statutory duty to do this, we may be in danger of going into custody—for example, won’t do it.” However, as we all know, the reality is that, there could be referrals from the courts. for a long time, part of the fabric of society has been The difficulty is that there is a disconnect in the local authorities funding all sorts of organisations and rehabilitation revolution between how such groups get operations that are not necessarily part of their statutory referrals, who buys the services and how they buy obligations. services. If government collectively wants social enterprises There needs to be a new obligation on local authorities to develop, there needs to be a much clearer indication to subject themselves to much greater community scrutiny, of where, within the machinery of central Government and that would happen in part if they had to put all and local government, organisations can buy services. their expenditure online and be much more transparent Otherwise, it will be extremely difficult for social enterprises about how they spend their money. Transparency is one to grow because they will have no idea how they might thing, but we also need to ensure that they subject be able to maintain a sustainable income. themselves to much greater scrutiny so that people can We are in incredibly challenging times because of the ask questions about how money is spent. need to tackle the budget deficit, but we also have an opportunity to rethink much of what we do and how we Barbara Keeley: The hon. Gentleman is talking about approach central Government and local government. local authorities retrenching and cutting back on support In the past, there has been a completely top-down, for the voluntary sector, but I have just outlined an paternalistic, dirigiste system in which a citizens advice example of the Government doing that. Does the same bureau at the bottom of the pile is lucky if it gets a duty fall on the Government when they start retrenching grant each year from the district council. We should and substantially cutting grants to charities? turn that on its head. There should be a bottom-up, community-driven process of priorities so that people Tony Baldry: The hon. Lady is already able to scrutinise in Deddington or Adderbury who are concerned about Government decisions—that is exactly what she is doing their library can drive the agenda, rather than it being today in this Chamber. She will have the benefit of a imposed on them from the top. We should see this as an response from my hon. Friend the Minister, who I am opportunity for real change. sure will answer her questions about TimeBank, which is an excellent charity and an excellent initiative, in his 9.58 am winding-up speech. Local government needs to take a new approach to scrutiny. Jeremy Corbyn (Islington North) (Lab): I hope hon. Members will accept that the maths that I have done are My second point is about engagement. My constituency correct. Four-minute speeches would get us all into the happens to have been confronted with a threat to the debate. Are you, Mr Amess, in a position to impose a local general hospital. Over time, that has constructively four-minute limit? resulted in much greater engagement between local authorities, the primary care trust and various campaigning Mr David Amess (in the Chair): Not officially. groups, which has been incredibly successful. As a consequence, we have managed to keep the local hospital Jeremy Corbyn: I look forward to your unofficial as a general hospital. imposition of a four-minute limit. It strikes me that that is a new, organic pattern of I welcome this debate and congratulate my hon. engagement between the local authority and, importantly, Friend the Member for Worsley and Eccles South (Barbara its officers, and members of the voluntary and community Keeley) on securing it. The voluntary sector is very sectors. There are no rigid demarcations as to who is important in our society. It is important for community accountable or who is elected. It involves people coming cohesion and for newly arrived communities, and, in together constructively to try to work out what is in the inner-urban areas such as the one I represent, it is a best interests of the community as a whole. We need the crucial part of the social fabric of both local government local government, its officers and elected members to be and health services. It is highly professional, efficient involved in much more of that sort of broader community and well organised, and stressful for those who work in engagement so that there can be an ongoing discussion it. I am president of Voluntary Action Islington, formerly with the community. Islington voluntary action council, and a trustee of My last point is that there needs to be much greater several local organisations, including Hanley Crouch commitment on the part of local government and central community centre, Elizabeth House and a new-ish group Government to put opportunities to tender out to social called Light Project International, which provides weekend 265WH Public Sector Funding23 MARCH 2011 Public Sector Funding 266WH and after-school activities for young people, so I am I wish that someone would define what a front-line acutely aware of and involved in the valuable work service is. It is easy to say that we must support people done by the voluntary sector. on the front line and not those in the back office, but if The voluntary sector has always been a combination a community centre does not have a bookkeeper, a of a small amount of general fundraising from events cleaner, a caretaker or someone to repair computers and collections, and much larger funding from local and so on, it does not work. There cannot be a simplistic health authorities, local government, various charitable distinction between the front line and the back office. It institutions and, occasionally, business donations. That is the totality of the service that is most important. is complicated, and we should have regard and respect Another condition on transition fund applicants is for those people who manage community centres and that they local organisations, and spend an inordinate amount of “have approved annual accounts that are no more than 12 months their time stressing over funds, staff and conditions, old which show that… your total income for that year was and funding applications. They spend a fantastic amount between £50,000 and £10 million and” of their time completing funding application forms. An that industry has grown up, with professional fundraisers “at least 60 per cent of your total income came from taxpayer-funded offering to complete application forms and to fundraise sources.” for fixed fees or a proportion of the funds raised. But £50,000 is quite a lot. We set up a community chest We must think through the efficiency of having highly system in Islington, which operated until the Government skilled community centre managers spending sometimes cuts, and the council has now set up a new but smaller 70% of their time on fundraising activities, which obviously community chest. It gives small grants to new, seedcorn diminishes a centre’s day-to-day work. A clearer, more organisations such as new Somali organisations—we defined role for local government and local health have a growing Somali community in Islington. The authorities in supporting and funding over a much grant may be as little as £4,000 or £5,000, and in some longer period would be much more efficient. The current cases even less. When such organisations are small and system is not efficient. have only just come into existence, a small investment I have been involved in voluntary sector organisations goes a long way. in my constituency for a long time, and in a previous incarnation I was chair of community development in The briefing goes on to say that free reserves could Haringey council. We developed community centres, “pay for your organisation’s total expenditure for no more than particularly for minority ethnic communities, disability six months.” groups and others, as a way to bring in people in I do not understand that requirement. Anyone who is partnership with local authorities and health authorities. running an organisation must have enough money to I strongly support the voluntary sector, but am sanguine pay for ongoing costs and redundancy costs for at least about its role. three months. I hope that the Minister will tell me two When I hear the Prime Minister talking about the big things: first, whether the transition fund will be simplified society, there seems to be a complete disconnect between and will continue beyond this financial year and, secondly, my experience in inner urban London and what the whether, as it has been so vastly oversubscribed throughout voluntary sector means there, and the vision that he the country, he will speak to the Chancellor and obtain seems to have of fairly well-off retired people donating more money for it. money to run a library and so on in a community with As every other part of the Budget seems to have been highly skilled people with time and money on their leaked, there will be no harm done if the Minister tells hands. That is not the reality of life in my community. If us exactly what part of the transition fund will be made the council closed a library, which fortunately it has not available to the voluntary sector. It is vital to put money done, and offered it to the local community to run, it into such organisations and to keep them going. The would not happen, not because people do not value the health, well-being and strength of communities are so library—they absolutely do—but because they do not important. Removing the seedcorn funding and the basic have the time, the money or the skills necessary to do it. running cost is damaging, and I hope that the Government If we want to maintain the social fabric of our society, will think again about that. we must be prepared to put public money into voluntary organisations with the add-on benefit of community 10.6 am usage and all that goes with that. However, as my hon. Friend the Member for Worsley and Eccles South said, Mr Mark Williams (Ceredigion) (LD): It is a pleasure that core funding is essential. to serve under your chairmanship this morning, Mr Amess. Another point for the Minister, which I hope he will I pay tribute to the hon. Member for Worsley and answer seriously, is the operation of the transition fund. Eccles South (Barbara Keeley) for initiating this debate. As with every other community in the country, mine It is a privilege to follow the hon. Member for Islington faces enormous cuts in local government expenditure North (Jeremy Corbyn) and the four-minute suggested and less grant money from the health authority, as well time limit. He did not quite stick to it, but his maths as less money from London Councils. There are great were welcome. difficulties. The Government established the transition The issue is an urban one, but it is also a rural one. I fund, but I have concerns about it. I received a good represent a large tract of rural west Wales, which has a brief on it from Gerard Omasta-Milsom, director of proud history of volunteering, and I will start with the Islington Peoples Rights, which is a very good voluntary Welsh perspective. There are 30,000 groups throughout advice agency. He says that to be eligible for the transition Wales, and 650,000 volunteers. It was estimated that in fund, applicants must be 2005, 54% of adults in Wales were volunteering in one “spending… 50 per cent of your total income delivering frontline… way or another. Many of those groups—some 10,000— services”. received no public funding whatever and relied on donations, 267WH Public Sector Funding23 MARCH 2011 Public Sector Funding 268WH

[Mr Mark Williams] but many others have not. We suggest a fund to provide a social networking school for charities. In other words— as they had incomes of up to perhaps £10,000 a year. yes—public funds to encourage charities and give them They ran small projects, with the emphasis on developing the training and expertise that they need. We cannot volunteers’ skills. hide from the fact that voluntary sector budgets will A huge number of other schemes in Wales relied on face cuts as a result of cuts to public spending, but local core funding in one manifestation or another, whether authorities have shown that the way in which such cuts from our Assembly Government or through local are managed can have a major impact. I do not want to authorities. I shall cite some examples in my constituency, get into a debate about £16 billion of cuts by this party and their valuable work. Many operated under the guise or £14 billion by that party, and the effect on the of a scheme initiated by our National Assembly which voluntary sector. Nevertheless, the hon. Member for is called the Communities First project. It is very relevant Banbury (Tony Baldry) was right to make a point about in deprived urban communities, and in scattered rural transparency. People and communities need to see the communities. I am not sure whether it is the Liberal situation and put pressure on local authorities to drive Democrats’ policy in the forthcoming Assembly elections the agenda as they see fit. That is a wise initiative. to retain that project, but they should do so, because it has been a laudable success in my part of Wales. Lilian Greenwood (Nottingham South) (Lab): On local authority funding, we must understand why The village of Ystrad Meurig wanted a mobile phone communities with the greatest deprivation are suffering mast, because it did not have any reception, and it was the highest cuts. Transparency is required on that issue. supported in that by the Communities First project. A scheme to develop a youth club in one of my deprived Mr Williams: I do not deviate from that message at wards in Aberystwyth was not short of volunteers, but all. My constituency includes communities with high it needed strategic leadership to organise and support rates of deprivation, so that is a strong point. As has them. I suspect that the idea that under the big society, been stated, however, the role of this debate and of green shoots of initiative will spring up throughout the Parliament is to allow hon. Members to challenge the country is far from the reality. That may happen in Minister, and the hon. Lady has done so effectively in many cases—the hon. Member for Islington North her intervention. spoke about protecting libraries, and we heard about the enthusiasm in Deddington in Oxfordshire. However, I would like to hear more from the Minister on the many of our communities require a lead and some big society bank. I note his written statement, and I measured core funding. agree with what the hon. Member for Islington North said about the limitations of the transition fund, particularly The hon. Member for Worsley and Eccles South the scale of that fund, which is oversubscribed. It would referred to citizens advice bureaux. I have two excellent be a tragedy if some of our voluntary organisations bureaux in Aberystwyth and Cardigan, and my wife is a were allowed to wither because of its limitations. trustee of one of them. Again, there is an abundance of volunteers, but what really worries citizens advice bureaux The written statement published this week talks about is the cut in the central training budgets, which affects “developing a proposal”, “engaging with the sector”, volunteers’ ability to deliver a critical service to my “further development work” and talking to the European constituents. We have heard about carers. I launched a Commission about state aid approval. Impatience with project with Crossroads Care, an organisation in mid-Wales this matter has been well articulated by the voluntary working to support carers with training, enabling them sector, and I would appreciate it if the Minister indicated to take advantage of new flexible working structures what time scale he is working to. In reality, the big and, when given the opportunity, return to the labour society bank seems to be some way off. There are market. More than anything, carers require the stability concerns about the ability to defend charities and the of core funding, and I hope that the Minister will voluntary sector from local authorities. The transition address that issue. fund is over-subscribed. The stakes are high and there is a mixed message about how the voluntary sector can The Liberal Democrats held a much heralded conference respond. in Sheffield a few weeks ago. The party was, in my view, discussing sensible proposals for the national health There is a great deal of support for the principles service, but tucked away in the agenda was a motion on behind the big society, if not the term itself. It was volunteerism. That might seem peripheral, but it is a noticeable that our Sheffield motion did not contain helpful pointer to show what can be done. I suggest that one reference to the big society, although volunteerism the Minister look at a couple of points raised in a paper was described as “principled.” There will be unanimity that we debated, which was launched by my noble across the Chamber on the role that volunteers can—and Friend Baroness Barker. The paper pointed out that we should—play in our society, working co-operatively do not always make the most of opportunities available with local authorities to deliver meaningful services to for funding the voluntary sector. In October last year, a people on the ground. There are still huge, immediate report by ResPublica described the system of gift aid as concerns about funding, and I hope that the Minister an “antiquated” bureaucracy, and pointed out that will allay some of those concerns in his response to the digital processing of gift aid could be worth £750 million debate. to charities. The Minister was present at that launch, and he indicated that he would think about the proposal. 10.15 am Is there any news on that? Lilian Greenwood (Nottingham South) (Lab): I thank The report also suggested that charities should make my hon. Friend the Member for Worsley and Eccles more use of social networking to raise funds. Many South (Barbara Keeley) for securing this debate. I will charities have done good work using social networking, try to be brief. The Minister and I have already debated 269WH Public Sector Funding23 MARCH 2011 Public Sector Funding 270WH the future of the voluntary sector in Nottingham. As he and support, is not sensible, practical or affordable. knows, I believe that the Government are cutting public Finally, I invite the Minister to visit the volunteer centre spending too far and too fast, and I have already in Nottingham so that he can see the outstanding work mentioned my concern that the cuts are not being being done, hear what people have to say, and learn why distributed fairly. The cuts will have a devastating impact they are so worried about the future of volunteering in on the city that I represent, and those who will bear the the city, and about the future of the unemployed and brunt of that impact are the very people least able to vulnerable under this Government. withstand it. A number of hon. Members have expressed concerns 10.19 am about the limitations of the transition fund. Given the time scale involved, that fund will not protect the services Chris White (Warwick and Leamington) (Con): I, that people rely on, the jobs of those working in the too, am grateful for the opportunity to speak in the voluntary sector, or volunteering opportunities. In the debate. The issue affects a range of communities, including short time available, I would like to focus on that last in my own constituency. aspect. We all appreciate that these are difficult economic The Government have stated that a key objective of times and that it is tough to find savings, but the first the big society is to encourage and enable people to play message that we should be sending out from the debate, a more active role in society.It is therefore incomprehensible and one that I support my right hon. Friend the Prime and strange to make cuts that undermine the organisations Minister in articulating, is that local authorities should that provide such opportunities. Nottingham has a consider every other available saving before reducing volunteer centre that supports groups to recruit and support to our voluntary services. We should be squeezing retain volunteers, as well as helping volunteers to find budgets, sharing services, cutting back-office institutions, suitable placements. In the past year, the centre matched generating efficiencies and trying to get maximum value about 2,500 people with volunteering opportunities in for money in procurement before we even begin to the city. In less than two weeks, however, all funding to consider reducing funding for voluntary organisations. support volunteering in Nottingham will end. The volunteer Warwickshire county council, for example, has cut its centre is particularly affected by the scrapping of the youth service budget, yet it has so far made only a 2% working neighbourhood fund and the national youth reduction in staffing. That is not how it should be. volunteering programme, which is called vinvolved. Eight Every local authority should view reducing spending on members of staff will lose their jobs. voluntary organisations as a last resort. In Nottingham, over half of the volunteer centre’s Rebecca Harris (Castle Point) (Con): In my experience, service users are aged 25 or under; 16% of those supported quite a lot of councils have risen to the challenge from by the V project last year were classed as NEET—not in my right hon. Friend the Prime Minister. My local education, employment or training. At a time of record borough council in Castle Point has gone so far as to youth unemployment, when one in five young people cut members’ allowances this year to secure the funding are unable to find work, it is counter-productive and for Crossroads, the Association of Voluntary Services short-sighted to cut that vital link to skills, training and and the citizens advice bureau, because it recognises confidence for the most disadvantaged groups. Figures their importance to the local community. Many councils released last week by the House of Commons Library are doing a very good job in that regard. show that over 3,500 young people aged 24 and under in Nottingham constituencies claim jobseeker’s allowance. Chris White: I thank my hon. Friend for her intervention. In some areas, 19 young people are chasing every vacancy It is clear that her council is a very good example of best advertised by Jobcentre Plus. practice. The Government’s decisions do not only affect young people, and 40% of those who come to the volunteer Emma Reynolds: Has not the chair of the Local centre are out of work. The loss of the service will Government Association, who is a Conservative, said reduce the opportunities available for people to retrain that the cuts imposed by central Government on local and improve their skills and employability, and it will government go way beyond efficiency savings and will also deprive organisations of volunteers who could help therefore necessarily put local government in the impossible to deliver vital services. On CSV “Make a Difference position of having to cut some services? Day”, I helped out at the local Barnardo’s shop. I talked to the volunteers, some of whom had become staff, and Chris White: I refer the hon. Lady to the fact that I heard how important volunteering was, particularly these are difficult economic times, which were not brought for people who were returning to work after a long about by the coalition, and something needs to be done. period caring for a family, those getting into work, and At the moment, I do not see the Opposition doing those with learning difficulties or a disability. Volunteering anything at all to begin to address some of these issues. was important for those people, and taking away that Voluntary services in a range of areas, from welfare opportunity removes that stepping stone into work. to social care and from youth services to health care, Unfortunately, as hon. Members have mentioned, enable the public sector to reduce “failure demand”, many local community and voluntary sector groups are which is one of the biggest costs to the taxpayer. Because unsure about the future of their own services. They will we fail to do the right thing the first time, we end up also lose the capacity to recruit and train volunteers. having to make more expensive interventions further For most organisations, fewer paid staff means fewer down the line. That is not the right approach to providing volunteers, not more. I hope that the Minister appreciates services. Local authorities should work with the voluntary that cutting resources to organisations that provide sector to use its expertise and understanding of the people with work and life experiences, skills training needs of service users to build better platforms. Although 271WH Public Sector Funding23 MARCH 2011 Public Sector Funding 272WH

[Chris White] bureaux have funding from primary care trusts, which are also going. Advice agencies could disappear—97% voluntary organisations can be a short-term expense, of law centre funding is under threat. I make this plea to they can also generate significant savings in the long the Minister: will he please look across the board and term. If anything, we should seek to shift funding bring all the Departments together when they consider towards voluntary organisations, rather than taking the funding for advice services? Otherwise, the cuts to funding away from them. each Department will affect that sector particularly An excellent report by the Association of Chief badly. Executives of Voluntary Organisations called “Replacing I also want to consider my local services in Makerfield the State?” gave four strong reasons why voluntary borough. Makerfield and Wigan benefit from 24,900 volunteer organisations are better placed to provide services than hours a week, and 68,835 people benefit from the services traditional in-house bodies. They are local and focus on provided. Those volunteers need the support of paid the needs of their users, rather than on what is best for staff and, often, the support of the infrastructure organisations. providers. They have higher levels of co-ordination, as We would not expect any employee to work without the they have a community-wide focus. They command a support of management and without a decent regime of high level of public trust. They are incredibly innovative health and safety, supervision and career development, and able radically to change the delivery of services for so why do we expect volunteers to do that? That is what the better. the cuts mean—the volunteers will not be there without There is an even plainer economic argument. Voluntary the support of those paid staff. organisations are already saving the public sector more Central Government are looking at cutting the than £20 billion in staffing costs, given the fact that infrastructure organisations. One particular concern for 17.1 million people volunteered in 2010. If we cut the my local council for voluntary service is the vinvolved funding on offer to the sector, we will reduce the funding. Over three years, the vinvolved project in infrastructure that channels those volunteers, either Wigan has dealt with 1,071 youths, most of whom were leaving people without services or leaving the public classified as NEET—not in education, employment or sector having to hire paid staff. I believe that if we training. There has been a significant reduction in repeat integrate voluntary organisations further into public antisocial behaviour orders for that group and an increase service delivery, we will not only see long-term costs go in the number of people going into work. Cutting that down, but we will be able to secure the future of many programme will leave those youths with nowhere to go. important groups throughout the country—something They will be back on street corners in the neighbourhoods that can benefit all our local communities. that have previously complained about them. It is so important to young people that they are brought into 10.24 am volunteering. My local branch of Age Concern has pointed out to me the value of bringing those young Yvonne Fovargue (Makerfield) (Lab): I congratulate people into its organisation and the cross-generational my hon. Friend the Member for Worsley and Eccles work that that has engendered. South (Barbara Keeley) on obtaining the debate. In the short time available, I will consider two areas. The first Emma Reynolds: Is it not sheer madness for the is the cuts to the advice sector throughout the country Government to cut vinspired when youth unemployment and the complexity of the funding for that sector. Local is at record levels? authority funding constitutes the building blocks on which a local bureau or a local advice centre works, Yvonne Fovargue: Absolutely. My local CVS managed although such places have a range of other funding. the future jobs fund in my borough, and youth The National Association of Citizens Advice Bureaux unemployment among 18 to 24-year-olds was reduced has recently published a report to show that, throughout by 56% in 2010 as a result. It halved the number of the country, bureaux face on average a 15% cut. There jobseekers from 900 to 450 in that period. To cut that at are some notable exceptions, both good and bad, but a this time, when young people are coming out of education simple salami-slicing approach has been taken in a and training without a job to look forward to, is sheer number of cases. Local authorities have not appreciated folly. the cost to them of cutting those services—when the services go, people end up on their doorstep in a worse I do not believe that the big society is new—in my position. borough or in any other borough—but I do believe that, due to the cuts, it is becoming the shrinking Jim Shannon: Does the hon. Lady agree that a time of society, which is dangerous. economic austerity, when the demands on citizens advice bureaux are greater than ever before, is a time not to cut 10.28 am funding for CAB and the work that they do, but to Julie Hilling (Bolton West) (Lab): I congratulate my encourage them and give them more funding? hon. Friend the Member for Worsley and Eccles South (Barbara Keeley) on securing the debate. I want to Yvonne Fovargue: I thank the hon. Gentleman for his follow what seemed to me to be her theme—what on intervention. I completely agree. earth are the Government playing at? In their wholesale Also at risk was the funding for face-to-face debt rush to get rid of everything that the Labour Government advice, which has been given a year’s reprieve, although did, they are destroying structures that would help to there are still arguments about the management costs deliver the big society. I shall talk specifically, as did my centrally. It is proposed that social welfare law should hon. Friend the Member for Makerfield (Yvonne Fovargue), go out of the scope of legal aid funding at the very time about vinvolved—the national young volunteers service. when we are introducing a new welfare system. Many Its aim was to get 500,000 young people into volunteering. 273WH Public Sector Funding23 MARCH 2011 Public Sector Funding 274WH

It developed out of millennium volunteers and was them together and give them the chance to make a directly funded by the Government. It has eight days difference to their lives and the lives of people in the left to be saved. community. The initiative was funded by the Government and The vinvolved initiative is the sort of project that the run by v, the independent charity. There were 107 Government need if they are ever to deliver their big vinvolved teams nationally. Its focus was on creating society. I agree with my hon. Friends that we already new volunteering opportunities, including working with have the big society, but if we want to extend and community and voluntary organisations, to create more expand it, we must have projects that support the voluntary high-quality, diverse volunteer opportunities for young sector and that help young people and adults into people; supporting local organisations that work with volunteering. There are only eight days left to save young volunteers; brokering 16 to 25-year-olds into vinvolved, and I really hope that the Minister will act so volunteering opportunities; finding the right opportunities that we can continue a project that serves the needs of for new and existing volunteers; helping young people young people and their communities in such a splendid to set up their own voluntary projects; and championing way. youth-led action, with each team including a youth action team made up of young volunteers giving advice Mr David Amess (in the Chair): I call Catherine on what projects and work vinvolved teams should get McKinnell. involved in. What happened? Young people were matched to Catherine McKinnell (Newcastle upon Tyne North) opportunities that suited their interests and aspirations, (Lab): I am here to listen to the debate and to contribute and that were sensitive to their individual circumstances. where necessary, Mr Amess, but I have not prepared a That was particularly important for young people with speech. multiple barriers to participation—for example, people leaving care, asylum seekers, refugees and people with Mr David Amess (in the Chair): I apologise. I am mental health issues. The vinvolved project particularly embarrassed, because we have six minutes left before targeted young people who would not normally be the winding-up speeches. Does anyone else want to involved in volunteering and who faced great difficulties contribute? in their lives. Such young people were at risk of being socially marginalised. However, apart from the effect on Catherine McKinnell: I could certainly make a the young people themselves, there is also a real cost to contribution, Mr Amess. Yousimply took me by surprise. society when young people are no longer part of it and have additional needs, which society must then tackle. Mr David Amess (in the Chair): In that case, I call In matching young people with appropriate and fulfilling Catherine McKinnell. volunteering opportunities, which in turn acted as a stepping-stone for their progression, vinvolved allowed many young people to find a new, positive direction. 10.34 am The project enhanced employability and provided references Catherine McKinnell (Newcastle upon Tyne North) for young people who had problems and who may never (Lab): I congratulate my hon. Friend the Member for have completed their secondary education. Those young Worsley and Eccles South (Barbara Keeley) on securing people may have had nobody in their lives to provide a this important debate. It has been very instructive to reference for them, but they got one through their listen to the contributions made from both sides of the volunteering opportunities. The project also supported Chamber. those at risk of social exclusion, increasing their confidence, helping to overcome feelings of isolation and loneliness, People in Newcastle are concerned about the speed and improving community relations as young people with which the local authority cuts have been imposed from different communities came together to work across and about the impact that that has had on the voluntary communities and with people from different backgrounds, sector and support for it. Newcastle is one of the cities including with lesbian, gay, bisexual and transgender that has a thriving citizens advice bureau service, and it young people, and black and minority ethnic young served more than 26,000 people last year, but it has now people. I should add that the voluntary work brokered received a 20% salami-sliced funding cut, which is one by Manchester vinvolved equates to £232,380—I like of the worst cuts to services in the country. the precise figure it has produced—based on salaries at The issue remains very much the speed with which the national minimum wage. the cuts have been imposed on local authorities, as well I could speak for a great deal longer about vinvolved, as their impact on different regions, particularly urban but I am aware of the time. I could also speak for a long areas, where cuts to funding to combat deprivation have time about the wonderful young people who have been had a disproportionate impact—for example, in cities involved in the project, whom I had the honour of such as Newcastle upon Tyne. meeting at an awards event for Greater Manchester a few weeks ago. Those young people have overcome Guto Bebb (Aberconwy) (Con): Clearly, all Members their disabilities and other issues, such as the need to in the Chamber share the view that the volunteering care for relations or the fact that they have come from sector is important, but while listening to Opposition broken homes or experienced homelessness, and they Members’ contributions I had the strong feeling that we have gone on to contribute enormously to the society have created an over-dependence on the public sector they live in. Without projects such as vinvolved, such for volunteering organisations’ funding in the past 10 years. young people will not get involved in volunteering, That over-dependence is as much about creating a big because they need organisations to support them, bring state as it is about creating a big society. 275WH Public Sector Funding23 MARCH 2011 Public Sector Funding 276WH

[Guto Bebb] Catherine McKinnell: Absolutely. The point could not have been put more clearly. I thank my hon. Friend Does the hon. Lady agree that many of the best for that intervention and for giving me the opportunity organisations working with local communities—certainly to contribute to this important debate. in constituencies such as mine—are free from Government intervention and Government funding? The point has 10.40 am been strongly made that there are bureaucratic issues in volunteering when organisations depend on Government Roberta Blackman-Woods (City of Durham) (Lab): funding. We need to create a society in which people May I say how delighted I am to serve under your volunteer, but do not depend on Government funding chairmanship, Mr Amess? I begin by paying tribute to to do so. my hon. Friend the Member for Worsley and Eccles South (Barbara Keeley) for securing this extremely Catherine McKinnell: I do not agree with the hon. timely debate. Its timeliness is evidenced by the large Gentleman’s assertion. I agree that there are some fantastic number of Members here this morning. voluntary organisations that do not rely on any public At this time, up and down the country, voluntary and funding. They are supported, and have to be supported, community-based organisations are extremely concerned across the country, and they are warmly welcomed. about their funding situation. Some, sadly, are trying to However, one of the main issues is that the abilities of cope with vastly reduced budgets for next year and those organisations are not necessarily distributed in uncertainty as to whether they can even continue to such as way as to target the most hard-to-reach areas, operate. My hon. Friend the Member for Worsley and which require more structured funding to support and Eccles South, in her amazingly comprehensive contribution, assist voluntary activities. That point has been made pointed to Labour’s proud record of supporting the very clearly by my hon. Friends and, indeed, by Government voluntary sector. In contrast, I think, to the withdrawal Members. of funding we see from the coalition parties. She used the cuts to TimeBank as an example of how that Stella Creasy (Walthamstow) (Lab/Co-op): There might withdrawal will affect volunteering and volunteering be another interpretation of the points raised by the support organisations. I want to speak about TimeBank hon. Member for Aberconwy (Guto Bebb), which is in a minute or two. that there is a fundamental misunderstanding of the relationship between the voluntary sector and the state, My hon. Friend also emphasised the importance of and of the importance of funding in ensuring that the supporting advice services, particularly in today’s economic voluntary sector has had the capacity to thrive over the climate. My hon. Friend the Member for Makerfield past 13 years. One of the dangers now is that services (Yvonne Fovargue) stressed that issue in what I thought will be affected when funding is taken away and that the was a very passionate contribution. My hon. Friend the capacity to thrive, as well as the voluntary sector’s Member for Worsley and Eccles South also reminded ability to deliver activities and to be a voice for many us, as she often does, of the need to continue to support people in our communities, will be damaged. Some of carers. My hon. Friend the Member for Islington North the comments that we have heard reflect a misunderstanding (Jeremy Corbyn) hit the nail on the head when he said of why it is so important to support the voluntary that this Government simply do not understand the sector if we want volunteering to thrive and if we want nature of the modern-day voluntary sector and its wide to tap into all the benefits it offers our society. range of activities, or the complexity that exists in the neighbourhoods in which it operates or the complexity Catherine McKinnell: I thank my hon. Friend for her of the problems that it must face. intervention. That is exactly the point that needs to be made. As my hon. Friend the Member for Worsley and Guto Bebb: On that point, did not the hon. Member Eccles South said at the beginning of the debate, there is for Islington North (Jeremy Corbyn) highlight the genuine concern that we need to understand how the complexity of the funding system put in place by the voluntary sector works, how it is funded and how it is Labour Government? supported. There is huge concern about the Government’s pursuit of an economic policy that is reducing the Roberta Blackman-Woods: Actually, I think the point deficit at a rate that is too fast, that is reckless and that my hon. Friend made was that the current Government will cause long-term damage to our civil society. do not understand the nature of the modern-day voluntary I want to put those issues on the record. The voluntary sector. That point was emphasised by my hon. Friend sector in Newcastle continues to thrive, but it sits in the Member for Newcastle upon Tyne North (Catherine sheer trepidation, because most organisations have no McKinnell) in her spontaneous but extremely informed—if security of funding beyond the end of this month. I may say—contribution. If he will forgive me for saying so, the contribution from the hon. Member for Banbury Barbara Keeley: Before my hon. Friend finishes, does (Tony Baldry) verified the point made by my hon. she agree that we could characterise this debate as one Friend the Member for Islington North. Other Members in which Government Members have hectored and lectured also made useful points, which I will deal with as I go local authorities about not cutting grants to voluntary through my speech. organisations in their areas, even though Ministers are I want to emphasise two things at the outset. First, in cutting the number of their strategic partners from government, as in opposition, Labour knew that the 42 to 14, and cutting their funding, too? Is it not deficit had to be reduced, but, crucially, we would not inappropriate for coalition Government Members to have cut so deeply or so quickly. Evidence seems to lecture local authorities about what they must and must suggest that it is the up-front cuts to local government not do, when they themselves are scything away the and central Government Departments that are proving infrastructure of the voluntary sector? so damaging to the voluntary sector. We know that it is 277WH Public Sector Funding23 MARCH 2011 Public Sector Funding 278WH some of our poorest areas with the highest levels of There seems to be a particular willingness on the part need that are facing the largest cuts. That point was of Government to cut infrastructure organisations such excellently made by my hon. Friend the Member for as TimeBank, Volunteering England, local CVSs and Nottingham South (Lilian Greenwood), who spoke about similar agencies. Where organisations directly support the huge impact the cuts to the voluntary sector will volunteers, drastic cuts might be very short-sighted have on her constituency. indeed, especially when the previous citizenship survey Secondly, it seems particularly unfair to ask more of showed a reduction in the number of people volunteering. the voluntary sector in terms of delivering services and We need to have more volunteering support organisations, filling gaps in provision, while cutting the resource base or at least support the ones we have adequately. TimeBank of a range of civil society groups. It has led the National and Volunteering England do an excellent job at supporting Council for Voluntary Organisations to conclude: volunteer development, so why dismantle tried and “The scale and speed of the cuts affecting the voluntary and tested methods of effective volunteer support in the community sector are severe and there is a very real danger that vague hope that something might become available in the sector will not be in any fit state to contribute to the ‘Big future? Society’ unless further action is taken.” We know from the Charity Commission that voluntary I can see little evidence that the Government are taking organisations employ approximately 780,000 staff, that further action. supported by 2.7 million volunteers who help them to The Government often raise the transition fund, which fulfil their aims. It appears that the Government want was mentioned by Members today, as the mechanism to rely on volunteers more and more, but they do not for plugging the gap. However, it is restrictive in coverage always recognise that volunteers need to be trained and and demands significant change from a great many encouraged. The cuts agenda may put at risk the key organisations, for example, they must become social planks of support for volunteers. enterprises, and a huge number of the 1,700 applications My hon. Friend the Member for Worsley and Eccles are still being assessed. Other funding that may reach South told us how Labour has supported the voluntary the sector in future, such as that from the big society sector. We understand it and value it, particularly its bank, is unlikely to be made available early enough to expertise and flexibility, and its ability to innovate. prevent some organisations from going under, regardless Before Labour left office, we set out radical plans to of how useful they are to their local communities, and boost funding for volunteers and to make asset-transfers we heard examples of that today. My hon. Friend the to the third sector. We designed the social investment Member for Bolton West (Julie Hilling) made a passionate wholesale bank, which was ready for launch, and launched speech about vinvolved in her constituency and the the social impact bond. We also supported the move for need for it to continue to support young people’s more mutuals and co-ops. We would like to see the volunteering. Cuts are being made regardless of how Government building on that agenda, not dismantling good organisations are at providing services or supporting it. We do not want to see the sector devastated by volunteers. unnecessarily deep and rapid cuts, that at worst will We have had some indication of what the impact of merely provide an opportunity for the further marketisation the cuts will be. The sector receives £12.8 billion from a of our public services. range of statutory sources, and about 52% of that comes from local authorities. Overwhelmingly, that is in the form of contracts for services delivered, rather than 10.50 am grants. I am not sure that Government Members picked The Parliamentary Secretary, Cabinet Office (Mr Nick up that point. Although it is difficult to put a precise Hurd): It is a great pleasure, Mr Amess, to serve under figure on the totality of the cuts affecting the sector your chairmanship. I congratulate the hon. Member for nationally and locally, the available estimates put it at Worsley and Eccles South (Barbara Keeley) on securing somewhere between £3.2 billion and £5.1 billion. That the debate and on the way that she spoke. However, is a huge sum, and a substantial proportion of the special congratulations are in order for the hon. Member sector’s income from statutory sources. At the same for Newcastle upon Tyne North (Catherine McKinnell) time, giving is £700 million less than its pre-recession on thinking so quickly on her feet, and on representing level, so the gap is not being plugged by another source. so sincerely sentiments that I heard directly only a few The end of transitional relief on gift aid in April 2011 weeks ago in Newcastle from people concerned about will cost the sector at least £100 million, and the increase what is going on. in the main rate of VAT to 20% will cost the sector an estimated £150 million per year. This adds up to a range The hon. Member for Worsley and Eccles South of cuts and cost-saving measures by the Government spoke passionately about TimeBank, and tried to make that are impacting on the sector’s ability to deliver. some wider points. I know that she has a particular The Government want to encourage more services to interest in carers, and has done some distinguished be delivered by employee-owned companies, mutuals, work in this place since being elected on that important co-operatives and social enterprises. Of course, Opposition agenda. The leadership of TimeBank is here, and those Members are not against that as a general policy direction, people are probably shooting daggers at me; we shall especially as it is one that we started while in government. meet soon to discuss the decision, but of course they We are against the rushed withdrawal of funding from will not agree with it. organisations without time for them to develop new I shall start with the specifics before going on to sources of funding and without a framework to help wider matters. I make no apology for rationalising the them to manage the transition from a charity or partner Office for Civil Society strategic partner programme. in service delivery with the local council to a social We inherited a situation with more than 40 strategic enterprise or something similar. That transition takes partners and almost as many civil servants, at a cost of time, support and resources. something like £12 million a year. I could not see what 279WH Public Sector Funding23 MARCH 2011 Public Sector Funding 280WH

[Mr Nick Hurd] The wider context is extremely important. It is not just about TimeBank, or the other organisations mentioned value the taxpayer was getting from that programme, by the hon. Members for Bolton West (Julie Hilling), and I received a lot of support from within the sector to for Makerfield (Yvonne Fovargue), for Nottingham rationalise it. South (Lilian Greenwood) and for Wolverhampton North The intention to rationalise was communicated to all East (Emma Reynolds). There is considerable concern strategic partners in July 2010. As a result, all partners in communities across the country about the impact of were effectively at risk of seeing some reduction in their the cuts. funding. We announced yesterday that we would be It would have been nice to have heard more recognition reducing it to nine organisations or partnerships, and I from the Opposition about the economic context, but am satisfied with the mix. The simple fact is that no that fell to my hon. Friends the Members for Banbury organisation has the right to be a strategic partner of (Tony Baldry) and for Warwick and Leamington (Chris the Government. The right has to be earned, and the White). The fact is that we are spending £120 million a process must be run robustly and professionally by civil day in interest, and that is entirely unsustainable. A servants, I received a recommendation about those nine sector that receives £13 billion of taxpayers’ money organisations, but unfortunately TimeBank was not cannot be immune from the process. included. I do not expect it to like that decision, but it The public hate to see politicians playing the blame was a robust process which I think was run properly. game, and I understand that, but nor should we take Barbara Keeley rose— them for fools. I believe that they understand the basics— that the Labour Government left this country massively Mr Hurd: May I finish my point about figures, because over-borrowed and that the coalition Government were it is perhaps the most important? Does it mean that elected to sort it out. That means that tough choices TimeBank and other organisations that are working have to be made by councils. As my hon. Friends the hard to manage and structure volunteering opportunities Members for Warwick and Leamington and for Castle and inspiring people to volunteer will have no further Point (Rebecca Harris) said, some have decided to give opportunity to access taxpayers’ money? Of course not. priority to cutting internal costs and making efficiencies I refer the hon. Lady and all with an interest in the before making cuts in the voluntary and community subject to the recently published Giving Green Paper, sectors. Others have taken a different course for very which will lead to a White Paper. In it, we made clear different reasons. that we will be investing in a volunteering infrastructure No one pretends that it is an easy business—it is programme with voluntary match funding, which will not—but the Government want to put in place active be worth about £40 million over this Parliament. There programmes to help the voluntary and community sector will be opportunities for TimeBank and other organisations manage the transition. We understand the need for such to add value to those programmes. a transition—from a situation in which too many Barbara Keeley: As the Minister is touching on his organisations depend on state income to one in which reasons for cutting away at the infrastructure of an the sector will have to diversify its sources of income in organisation that supports volunteering for hospices, new ways. for the Olympics and for carers, I invite him to explain We want to help manage the transition because we exactly why—beyond a departmental goal to rationalise see big opportunities for the voluntary and community the number of strategic partners—the Government are sector to do more to deliver more public services, and to cutting away at a vital organisation? The same question have a bigger voice at the local level, exactly the point could be asked about others. TimeBank is crucial to made by my hon. Friend the Member for Banbury. In supporting volunteering, and has an excellent 10-year future, there will be many more arguments about local track record. Indeed, he sent it a message when it priorities, and the voluntary and community sector can achieved its 10-year anniversary. Why is he doing this? give a voice to people who often struggle to have their voices heard. The localism agenda will give them a big Mr Hurd: I tried to explain why earlier. We ran a opportunity. We are obviously very ambitious in our process to identify a shorter list of strategic partners, wish to encourage people to give more time and money with criteria; TimeBank and other organisations on a to help others. longer list did not make it through that process. As I said, no organisation has the right to be a strategic Jeremy Corbyn rose— partner of the Government, but I do not expect them to be comfortable with that. I have to tell the hon. Lady that her approach is Mr Hurd: I do not have time to give way. symptomatic of the previous Government’s approach People will go to charities and the voluntary sector. to public money. There was absolutely no rigour in the There are significant medium and long-term opportunities strategic partner programme that we inherited; we are for the sector, but we have to help manage the short-term trying to introduce it for the first time. The hon. Lady transition. speaks about our cutting funding, but she completely That brings me to the transition fund and the specific ignores the fact that there will be further opportunities, questions raised by the hon. Member for Islington in what are frankly more appropriate programmes, for North (Jeremy Corbyn). Most of the answers are contained organisations such as TimeBank to access taxpayers’ in the basic statement. The fund had to be rationed. It money and continue their work. had to be targeted on those organisations most vulnerable Barbara Keeley rose— to a cut in public grant or contract. We took advice from the sector on the criteria. We had to set an income Mr Hurd: I wish to make progress. threshold. 281WH Public Sector Funding 23 MARCH 2011 282WH

We are proud of the progress that BIG fund has Steel Industry (Carbon Floor Pricing) managed for us. I visited an organisation yesterday that has benefited from it. The charities’ fund is £100 million, 11 am and it was topped up yesterday by £7 million from the Department of Health. That is serious money, and it Jessica Morden (Newport East) (Lab): Thank you, will help organisations that are particularly vulnerable, Mr Amess, for the opportunity to take part in the or that have more than 60% of income vulnerability to debate today. I am so grateful for the attendance of the state, to make the transition. Members with an interest in steel, which shows the The hon. Member for Ceredigion (Mr Williams) asked strength of feeling on the issue. about the Big Society bank. It is not a panacea for cuts I put in for the debate after one of my regular visits to in grant. It is a serious strategic long-term intervention, Llanwern steelworks in my constituency. There has designed to make it easier for the sector to access been a steelworks plant at Llanwern since 1962. Although capital. I expect between £60 million and £100 million steel making ceased in 2001, Tata at Llanwern is still a from dormant bank accounts to be released in the third major employer with a hot strip mill and a galvanising quarter and be made available for deployment. I expect line run by an extremely enthusiastic work force who £200 million to come from the four major banks before make a high-quality product for the automotive industry, the end of the year. The balance of the bank’s capitalisation among others. will come from the rest of the dormant bank accounts, The industry has had ups and downs over the years, once they have passed through the state aid process, but with the loss of the heavy end and heavy job losses in it is difficult to pin that down at the moment. 2001, but the dedicated work force produce a high-quality We are talking about a £600 million opportunity—a product. Tata’s investment down the road in Port Talbot, serious attempt to make it easier for social entrepreneurs to which Llanwern is inextricably linked, means that at to access capital in this country. It is part of our the moment things are looking good and employment is programme to help the voluntary and community play back up to around 700. This is a good-news story, but a full role; it will help to build a stronger society, which the threat to the steel industry from Government legislation we want to encourage, and a better partnership between is making the industry wary, and I want to explore that the state, business, the voluntary and community sector, today. and active citizens who feel empowered to take more I am also glad to be introducing the debate because control over their lives. on two occasions in the past week the issue of carbon floor pricing has been raised: in the Welsh Grand Committee by my hon. Friend the Member for Llanelli (Nia Griffith), and in the all-party group on energy-intensive industries. Startlingly, there was no Government response in either forum to address the industry’s concerns. I hope that today’s short debate will give the Minister the chance to hear the very real concerns and address them in person so that the industry knows where it stands. Although “steel” appears in the glamorous title of the debate, the issues apply equally to other intensive energy users such as the paper, glass and ceramics industries, which employ about 225,000 workers in the UK. The issue that concerns the industry is the carbon floor price, which might be introduced in today’s Budget, although the Minister will know more about that than Ido. The Conservative manifesto pledged to reform the climate change levy to introduce a carbon floor price or a stability mechanism so that the total cost of carbon for generators could be more certain. A policy seems to have developed in practice that increases the cost of carbon for UK electricity generators, yet is seen as another tax on the fuel used by generators. The Government’s stated aim for the carbon floor price is to boost investment in low-carbon energy, especially in nuclear power, by putting a minimum price on carbon through taxing fuels used for generating electricity according to carbon intensity. That pushes up the cost of producing electricity from high-carbon fuels such as coal, making renewable and low-carbon means of electricity generation relatively cheaper. UK energy intensive producers will therefore face huge cost increases that will not be borne by other competitors elsewhere in Europe or the rest of the world. The UK steel industry’s submission to the consultation makes it clear that the carbon floor price is the wrong policy for three reasons. First, multiple regulations are 283WH Steel Industry (Carbon Floor 23 MARCH 2011 Steel Industry (Carbon Floor 284WH Pricing) Pricing) [Jessica Morden] with steel produced in the UK, not imported from China, Russia, Ukraine and other steel-producing countries trying to fix individual problems in lots of different that do not face the same regulatory restraints. ways. Carbon is already priced through the European The industry would say that there is consensus for Union emissions trading scheme, the climate change some regulation in this area, but that current policies levy and the carbon reduction commitment, alongside are complex and over-burdensome. As I have said, if the renewable subsidies. Secondly, it runs the very real carbon floor pricing goes ahead, there will be four risk of having a negative impact on the competitiveness prices on carbon—the carbon floor price, the climate of UK manufacturers—a disincentive to invest in the change levy, the carbon reduction commitment emissions UK. Finally, the industry claims it is questionable whether trading scheme, and the renewable subsidies—but no the policy will deliver the desired outcome at all. consistent way of measuring carbon as between those. The industry argues that if the Government are to price Ian Swales (Redcar) (LD): I thank the hon. Lady for carbon, they must make it simpler for everybody involved. giving way and for securing this important debate. Does she agree that many of the industries we are talking The major issue, to which the hon. Member for about are owned by foreign companies, which can choose Redcar (Ian Swales) alluded, is competitiveness. The where to invest, so if the UK adopts policies different debate takes place in the context of escalating costs for from those of the rest of the world, that will simply UK steel producers from existing UK and EU climate drive those industries out of this country? policies that are eroding their international competitiveness. Nobody else in Europe or the world will face those Jessica Morden: I thank the hon. Gentleman for his costs, which is a threat to UK steel. The Government well-made point, which covers the precise subject of the are asking the private sector, especially manufacturing, debate. I shall return to it. to create jobs, but that will not happen if we impose certain conditions and have carbon leakage. Manufacturers We all know we have to reduce our carbon footprint, will choose to go to parts of the world where they can but industries such as steel use large amounts of power get away with less stringent conditions. They will be out of necessity and have no other realistic option at the able to produce steel with the same amount of emissions moment. In the steel industry in my constituency, I see and we will have lost the industry. Where is the sense in an industry that supports plans to make the transition that? That applies not only to some developing countries, to a low-carbon economy and is actively trying to be but, most worryingly, to Europe. No other EU Government involved in being part of the solution to reduce CO2 are making similar proposals, and many have taken emissions. For Tata, that might involve developing products steps to reduce the impact on trade-exposed industries and improving processes such as the £60 million basic precisely to avoid the problem. oxygen steelmaking—BOS—gas recovery investment it has made at its Port Talbot plant, which will have great The figures are quite stark. Tata Steel estimates that benefits for us at Llanwern, or products such as the by 2020 the cost of carbon floor pricing will add at least photovoltaic project being developed in Shotton. an extra £20 million per year to its energy bill. I also draw the Minister’s attention to the Waters Wye report, It is worth remembering that to build low-carbon which documents the cumulative impact of all climate energy sources, improve energy efficiency and drive change policies on heavy energy users. advancements in low-carbon construction, steel will be in high demand. Steel is a high-carbon industry in its Tom Blenkinsop (Middlesbrough South and East production, but an essential product for the low-carbon Cleveland) (Lab): My hon. Friend has secured a very economy. important debate and she is making an excellent argument Mr Denis MacShane (Rotherham) (Lab): Has my for the steel industry. Is she aware that we now have a hon. Friend seen scrap metal being recycled in an 14-month high in the inflation rate, with the retail prices electric arc furnace? An element powered up to 2,000° index running at 5.5%? That is pushing sterling to a of heat plunges into it and recycles instantly, but that much higher rate than previously. Coupled with current requires a huge amount of electricity and energy. I commodity prices, particularly for coke and iron ore, understand where the Government are coming from, there is already a strain on the industry. but unless they find a solution to the problem, their proposals might have the perverse effect of making that Jessica Morden: My hon. Friend makes a valid point, unprofitable, and their welcome focus on manufactures which I am sure the Minister will address. My hon. and exports—there is a demand—might come to nought. Friend is, of course, quite an expert in this field. For the first time in 17 years as MP for Rotherham I am Tata’s submission to the consultation on carbon floor desperately worried about the future of electric arc pricing also questions the effectiveness of the measure, furnace steel manufacture in our country. We must find claiming that it will have only a limited impact on a tweak and a solution to the problem, so I welcome my reducing carbon emissions, even though its cost is real hon. Friend securing the debate. and direct. Tata’s submission suggests better ways to achieve lower emissions, which I will not go into now, Jessica Morden: I welcome my right hon. Friend’s but I draw the Minister’s attention to the submission intervention. Steel making is an incredibly beautiful and ask that further consultation with the industry be process. His point is that we must ensure balance and pursued. that the new tax does not drive heavy industry out of I also ask the Minister to address several other points. this country. It would be helpful if he outlined how the Department Steel is a high-carbon industry in its production, but for Business, Innovation and Skills has worked with the an essential product for a low-carbon economy. Surely Treasury and the Department of Energy and Climate we all want the UK’s low-carbon economy to be built Change to limit the impact on intensive energy users of 285WH Steel Industry (Carbon Floor 23 MARCH 2011 Steel Industry (Carbon Floor 286WH Pricing) Pricing) the proposals for carbon floor pricing and of the wider also fundamentally important to many other industries, electricity market reform. Does he accept that the particularly in manufacturing. Later today, The Chancellor Government’s proposals will have a serious impact on will set out our framework for growth for manufacturing, the competitiveness of key industries? If so, does he which I hope Members will welcome. That framework understand how such an impact will directly conflict reflects some of the long-term issues that the steel with the Government’s policies on private sector growth industry and similar industries face. and an export-led recovery? How do the Government intend to ensure that these Huw Irranca-Davies (Ogmore) (Lab): I should point measures do not impact on the competitiveness of UK out that I am speaking today in my capacity as the MP manufacturers? Given that there was only a very short for Ogmore and not in my capacity as a shadow Energy time for consultation—I believe it was about six to eight Minister. weeks over Christmas—will the Government at least I am not asking the Minister to reveal the details of commit to carrying out a comprehensive assessment of what is in the Budget. However, he just used the word the impact on energy intensive industries of their proposals “framework”. That is quite interesting, because the for electricity market reform and a carbon floor price? Energy Intensive Users Group and others have been Many organisations raised fears about the proposals calling for us not to pin this down, right here, right now, during the consultation, including the Engineering in the Budget, but to allow scope for further discussion. Employers Federation, the CBI, the TUC and the Energy Is that what the Minister meant when he used the term Intensive Users Group. Has the Minister taken their “framework”? views on board and are the Government listening? Finally, in fairness to the steel industry, I must say Mr Prisk: Yes. The manufacturing framework covers that I believe that it is continuously looking for ways to issues that are broader than the issue that we are discussing in this debate. It is about all the issues of capital improve its CO2 performance through improvements to processes, products and investment, particularly in research investment, skills and so on. However, the hon. Gentleman and development. The UK steel industry wants to be is quite right. What we have tried to do with the growth part of the solution to climate change, but it needs the reviews for manufacturing as a whole—I am just going Government to understand that it must compete on a slightly beyond the purview of this debate, Mr Amess, level playing field around the world to do so. Otherwise, but not too far—is to ensure that we have listened we will face a situation where companies could make carefully to manufacturers about all the different aspects long-term investment decisions based on the Government’s of manufacturing, so that we understand how the proposal policies and take their investment plans abroad. As an will work. The hon. Gentleman is quite right that the MP with a steel interest, I certainly do not want that to framework needs to be one in which the Government happen, so let us make our steel industry part of the are a partner with industry, so that it is not simply solution to climate change. I look forward to the Minister’s something that we have decided is the right thing without response. listening to others. That will be reflected particularly in our response to energy intensive users.

11.12 am Ian Swales: Will the Minister give way?

The Minister of State, Department for Business, Innovation Mr Prisk: I will do so briefly, but there are some and Skills (Mr Mark Prisk): Thank you very much, Mr detailed responses to be made to the points raised in the Amess, for calling me to speak. It is good to see you in debate. the Chair. I want to begin by congratulating the hon. Gentleman— Ian Swales: I will be very quick. Is the Minister aware sorry, the hon. Member for Newport East (Jessica Morden). that this very week we have had the first full meeting of There is obviously a little too much gin in the water in the new all-party group on energy intensive industries? I Westminster Hall. I congratulate the hon. Lady not am the vice-chair of that group and I have never been to only on securing the debate but on her incisive comments an all-party group with a higher attendance. Every about the balance that we all have to strike between the single industry that has been mentioned in this debate environmental and business challenges. I will respond was represented at senior level, which illustrates the specifically to the points that she has made. level of concern about the issue. It also supports what It is slightly unfortunate that today is the day of the the hon. Member for Ogmore (Huw Irranca-Davies) Budget because, as right hon. and hon. Members will was saying, that we need time to engage with the understand, that somewhat hampers my ability to be Government to ensure that they truly understand these more specific about measures such as the carbon floor issues. price. The Chancellor will be on his feet imminently and I am sure that he will set out some things in that regard Mr Prisk: I welcome that. It is very important that we in more detail. The hon. Lady not only has an interest have a good and thorough debate, and that Members in the steel industry in her own constituency but she is across the House can participate in it. That is very chair of the all-party group on the steel and metal welcome news. related industry. That combination of interests was very The industry is crucial. We have talked about it in evident in her speech and indeed in her responses to principle, but when one looks at the facts, last year, questions from Members, all of whom have a strong some 9.7 million tonnes of crude steel were produced in constituency interest in this important industry. The the UK and the industry employs 25,000 people directly. right hon. Member for Rotherham (Mr MacShane) is Encouragingly—and this goes back to the point that absolutely right that this is a very important industry. It the right hon. Member for Rotherham made—about is dramatic, in the way that he rightly described, but it is half of the UK steel industry’s output is now exported 287WH Steel Industry (Carbon Floor 23 MARCH 2011 Steel Industry (Carbon Floor 288WH Pricing) Pricing) [Mr Prisk] Let me come back to where we are on the carbon price floor, then look at the strategy as a whole and at and we are now a net exporter. That is not necessarily how we mitigate some of the impacts. The aim is to something that one reads in the newspapers, but it is a encourage investment in low-carbon electricity generation, success story, and in that context I commend both the by giving greater support, yes, and also by providing previous Administration and the industry itself. That is certainty on the price of carbon in the power sector. quite something. Getting that right is important for the whole of In Wales—this is particularly relevant to the hon. manufacturing but, as Members have rightly pointed Member for Newport East—I believe that about 7,000 out, we must strike a balance between the environmental people are employed in the steel industry, with 4,000 gain and improvements in energy efficiency, which could people employed at Port Talbot and 1,000 people employed help all manufacturing, and doing so in a way that does at the Llanwern rolling mills, so that is an important not pinch key energy-intensive sectors unreasonably. part of the sector. What is encouraging is that despite Members will understand that as the price is going to be the fact that in 2008, the industry saw demand for its set in the Budget later today, and as I would like to products drop by 50%, which would be devastating for continue to be a Minister of State for a little while yet, it any industry, it has been able, through good management would be unwise to pre-empt what the Chancellor will of production, good co-operation and a flexible and say, in what I know will be an excellent Budget. committed work force, to ensure that there were not any Let me turn to the question that the hon. Member for major long-term job losses in those plants, which have Newport East rightly asked about what my Department been able to come back into production. Of course, is doing in conjunction with others to consider how to there were some job losses, but in any industry if demand mitigate the impact. We are working with the Department and production drop by half, that is potentially a killer. of Energy and Climate Change on a comprehensive Thankfully, that did not happen. strategy on energy-intensive industries, including steel. I turn to the specific issue of the carbon floor price, The strategy is deliberately intended to look at energy before addressing the energy intensive industries strategy costs, and to assess the incremental changes that industries and thus responding to the question about what my have made—I will come on to some that have very Department is doing to mitigate the impact. We have successfully been achieved in Wales—and possibly the just consulted on the issue across Government, although longer-term transformational changes that might help the consultation was of course led by the Department the industry to deal with the bigger, long-term issues. for Energy and Climate Change. To respond to a question Huw Irranca-Davies: The Minister has said that a line from the hon. Member for Newport East, we consciously in the Budget will set the carbon floor price, but before made a specific point of talking to the key industries he moves away from the issue I would like to ask him involved, including the Engineering Employers Federation, whether he is alive to the concerns raised by my hon. which she mentioned, so that we have a careful Friend the Member for Newport East (Jessica Morden) understanding of the practicalities of the measure for about the complexity of different measures. The carbon all energy users and for particular industries. floor price sits alongside the ongoing electricity market Mr MacShane: I will be brief. I regard the Department review and other measures that are already in place. Is for Business, Innovation and Skills as an ally in this the hon. Gentleman, as a Minister in the Department process while, as we know, the real enemy is across the for Business, Innovation and Skills, focused on streamlining, road in the Treasury. Then there is DECC, with its and on removing complexity to achieve the overall open-toed sandals, greenery and all that nonsense. outcome? Is he having those discussions with his colleagues in the Department of Energy and Climate Change to The Minister of State, Department of Energy and see what is the simplest, most direct and most effective Climate Change, the hon. Member for Bexhill and way of achieving the decarbonisation objectives, and Battle (Gregory Barker) told me on the Floor of the boosting renewables and potentially the nuclear industry— House before Christmas that he would accept an invitation despite what is going on in that field at the moment—while to meet a delegation, but nothing happened. I then at the same time stripping out layers of complexity and asked him about it face to face in the Lobby, and he bureaucracy? said, “Oh, I’m terribly sorry, Denis, we’ll try and sort this out”, but nothing happened. Does the Minister Mr Prisk: Absolutely. The hon. Gentleman is right. accept that there has not been enough consultation, There are two challenges for the Government in this especially with hon. Members, the workers and trade context: dealing with the low-carbon energy issue and union employees? As this process unfolds—I think that ensuring that the lights do not go off in a few years’ we will be discussing this for some time—it will not be time. Those two challenges do not necessarily run in the fixed for ever, either today or tomorrow—will he agree same direction, and if there is any conflict or tension we to receive a bit more input from right hon. and hon. need to ensure that we get the balance right. As the hon. Members, the trade unions and the work force? Gentleman rightly says, as a Minister in the Department for Business, Innovation and Skills, I want to ensure Mr Prisk: My hon. Friend the Energy Minister is a that we do not lose our competitive edge. The export very busy man, and I suspect that it will be through no roles that the right hon. Member for Rotherham referred fault of his own if he has not yet been able to fulfil that to are very important. We must ensure that we remain obligation. However, the door is not closed in this area. competitive and continue to be a net exporter, and I There is work to be done. My view, and I am sure that it would like to encourage that. is the view of my hon. Friend, too, is that we would Let me come back to the strategy and explain to always encourage involvement in this process. If there is Members what is in it, how it works, and how we are an opportunity to do that at the right moment, yes, we involving the industry. The strategy is designed to deal will do so. with a number of key objectives. First, it will assess the 289WH Steel Industry (Carbon Floor 23 MARCH 2011 Steel Industry (Carbon Floor 290WH Pricing) Pricing) potential for cutting greenhouse gas emissions, not just by 400,000 tonnes, while improving environmental in steel but across the industries, and look at the interplay performance and safety. If production can be increased between the sectors. There are a number of subsectors, and performance improved, let us see how we can roll and if we are not careful we will lose the capability of that out and work with the rest of the industry on that the larger sector because we have not taken care of the best practice. smaller ones. That is sensitive issue of which we are very much aware, and there is a thorough technological Tom Blenkinsop: I think that that is a good argument, review of the sectors and their processes, because that, I but if the Minister or the Government are going to suspect, will be where the transformational change can propose new taxation on carbon, one option might be best be achieved in the longer term. There have nevertheless to recycle some of those funds into industrial programmes been some very good short-term changes, which I will that would help the steel industry across the board and mention in a moment. across the nation to do similar projects. Secondly, what we are trying to do with the strategy is Mr Prisk: We are always mindful of the need to build on existing research and both public and industry consider whether we can help the industry, particularly initiatives, to look at how reducing emissions can be where there are up-front capital projects that need to be progressed further. In many ways, it is about extolling bridged, and I am always in discussions with the sector. and developing best practice. Thirdly, the review looks I cannot make open tax promises at this stage as that is at a whole range of ways of decarbonising energy-intensive not my job; it is the job of the Chancellor, and rightly sectors. We are examining improvements to existing so. I am nevertheless always happy to talk with the processes, as well as looking at substitutes and alternatives. industry on that basis. That is partly to do with materials, as well as with processes. Fourthly, the strategy is embedded in a The strategy, together with the carbon price floor and collaborative process with industry, the regulators and together with the fact that the strategy is founded on a the various experts engaged in the field, such as institutions consultative approach, means that we can, I think, work dealing with materials, and we seek to provide evidence with the industry.As the right hon. Member for Rotherham to make the case for the EU to move towards a 30% EU rightly says, the Treasury, the Department of Energy emissions reduction target, to which we committed and Climate Change and the Department for Business, ourselves in the coalition agreement. That is an important Innovation and Skills all need to be involved, and that is shift, and it comes back to competitiveness. the approach that we seek to take. If we had only a single Department approaching the issue from one Lastly, we are looking to introduce, promptly but not perspective, we would be in danger of not looking at it unduly hastily, a range of policy options on which we in the round. can work with the industry so that it can make the transition, while—from my point of view—always looking Jessica Morden: As part of that, has the Minister at competitiveness. That is a difficult balancing act, and done a full impact assessment of the effect of carbon I suspect that we will not achieve it perfectly because of floor pricing on intensive energy users? If not, will he the inherent tensions and the nature of the industry, make a commitment to doing so? and of the steel sector in particular. We are looking at the sector leaders and the supply chain, and at engaging Mr Prisk: The lead on this is not my Department; the with them through the strategy, to ensure that it can proposal comes from the Department of Energy and work. Although there are natural anxieties there is some Climate Change, which has been looking specifically at really good practice, and I want to highlight a couple of the impact of the price across sectors. I deal with examples that I suspect the hon. Members for Newport deregulation, and impact assessment has many other, East and for Ogmore will know, given that they are in often challenging, implications. We have been looking Wales. at how it impacts on the sector, what it means and, most of all, what the practical outcomes are that the industry Last spring, Tata Steel in Europe completed a £60 million can use to progress. That is the key point. investment to recycle process gases from the Port Talbot melt shop. The new facility reduces Port Talbot’s carbon In conclusion, we believe that energy efficiency and dioxide emissions by 240,000 tonnes a year, its particulate business competitiveness go hand in hand. We are trying emissions by 40 tonnes a year and, most interestingly, to ensure that the challenge for the environment does cuts its energy requirement from the grid by half. As the not become something that is done at the expense of the right hon. Member for Rotherham rightly says, this is a economy, and we are very sensitive to the fact that genuinely energy-intensive industry. It is also an industry particular industries, whether it is steel or—as I saw for in which we need to be able to control the energy in key myself recently—brick making, understand the practicalities bursts, and therefore the ability to reduce the energy of changing processes, changing materials and the requirement from the grid by half is tremendously regulatory environment, and how the carbon price floor encouraging. will work, so that we can help businesses move through this period and successfully decarbonise themselves and A further £185 million investment at Port Talbot was compete at the same time. announced last August, and the project, which is due to finish in July, will involve the rebuilding of blast furnace 11.30 am No. 4 and will increase liquid steel capacity at the plant Sitting suspended. 291WH 23 MARCH 2011 Pig Farming 292WH

Pig Farming The inexorable slide into loss-making as rising feed prices have affected the industry has begun to cripple pig farmers in this country once again. The price that [HUGH BAYLEY in the Chair] pig farmers pay for feed has more than doubled since 2010. Feed costs are rising faster than during the crisis of 2008, and I am afraid that the omens for the future 2.30 pm are not good. BPEX—the British Pig Executive, which Mr Richard Bacon (South Norfolk) (Con): It is a is the industry body—estimates that feed, which is great pleasure to serve under your chairmanship, Mr Bayley. generally made up of a combination of wheat, barley I am delighted to have secured this debate, as we have and soya, remains the single largest cost for British pig reached a critical juncture in the British pig industry. I producers and accounts for 77% of pig farmers’ costs, am also particularly pleased to see the Minister in his up from 60% in 2009. BPEX expects food costs to place, as I know that he is a friend and ally of Britain’s remain historically high this year, and possibly beyond. pig farmers and has taken a lot of trouble to understand That gloomy forecast is being borne out by recent the problems faced by the industry. movements on the international cereals market. The We should not underestimate the size of the industry. Food and Agriculture Organisation of the United Nations The value of pork retail sales in the UK is about expects a tightening of the global cereal supply this £8.7 billion, outpacing chicken, beef or lamb. This is an year, driven by growing demand after the slump in important industry, but I am sorry to say that it is in world cereal production in 2010. According to the FAO, trouble. Just three weeks ago, pig farmers from our export prices of major grains have risen at least 70% constituencies and across the country flocked to since February last year, and global cereal stocks are Westminster to draw the Government’s attention to the expected to fall sharply due to a decline in supplies of plight of their industry. Many MPs will have signed the wheat and coarse grains. Market uncertainty after the 16-foot sausage in Whitehall and heard the rousing Japanese earthquake caused prices to fall from £214 a rendition of the industry anthem “Stand By YourHam”, tonne in February to £170 a tonne last week, but as of all in support of the cry, “Pigs are still worth it”. last Friday, wheat prices had climbed back to £195 a I say “still worth it” because the Minister and other tonne. As one might imagine, recent increases in the colleagues with long memories may recall attending the price of pig feed have had a severe impact on the cost of 2008 “Pigs are worth it” rally. Like this month’s rally, pig production, which has risen to £1.64 a kilogram. the 2008 gathering was a response to a sharp increase in However, although production costs continue to rise, feed costs that left the industry on the brink of collapse. the dead-weight average pig price—the price farmers After the 2008 rally, led by the much-missed standard-bearer receive for the pigs they produce—has fallen during the of the “Pigs are worth it” campaign, Winnie the pig, the same period. In February, the DAPP stood at £1.35 a industry returned to profit in 2009. That breathing kilogram, 29p short of covering pig farmers’ costs and space allowed farmers to recoup some of their losses 12p a kilogram below the July 2010 price of £1.47 a and take the opportunity to invest in improvements to kilogram. production and infrastructure. Britain’s pig farmers started 2010 in a state of cautious Despite fluctuations in profit margins, the outlook optimism, their hope to rebuild based on the reasonably remained positive, at least for a few months, until last steady costs that they faced and their improved returns August, when the industry was driven into crisis once in 2009, but by September 2010 the industry had returned more. The fleeting period of profitability was not long to making a loss, and by January 2011 the cost of or profitable enough for pig farmers to recoup the production had risen by one third compared with 2007. severe losses that they sustained in 2007-08. According to BPEX, a farmer sending 200 pigs to Mr Greg Knight (East Yorkshire) (Con): I am grateful slaughter in January this year stood to lose £4,500 in a to my hon. Friend for giving way, and I congratulate single week. The pig industry is facing overall losses of him on securing the debate. Does he agree that one £4 million a week, and farmers are estimated to be problem has been our loose labelling law? Many consumers losing more than £21 on every pig produced. wanting to support the British pig farmer by buying Although the rising price of feed is undoubtedly a British pork have not always known when they were major factor in the pain being suffered by British pig doing so, because it is possible to package pork reared farmers, it is far from being the only factor. The pressure overseas as British if it is merely processed here. on Britain’s pig industry caused by rising feed prices is Mr Bacon: My right hon. Friend is correct. He might being amplified by what can only be described as the have seen my Food Labelling Regulations (Amendment) decoupling of the supply chain. For a supply chain to Bill, which is scheduled for Second Reading on 1 April. work properly, manufacturers, processors and retailers Should the Government wish to take this opportunity must work collaboratively to bring down its costs effectively to announce that they will give it Government time, I and sustainably. However, it is clear that the pressure of would be only too pleased to hand it over to officials to high feed costs is not being shared across the pigmeat be steered through the House. Yesterday, I was encouraged supply chain. If anything, the reverse is the case. Feed by a phone call from the Department for Environment, manufacturers have passed on the rise in the cost of Food and Rural Affairs asking to see a copy. It is cereals to their customers—that is, pig farmers—but the important to say that there has been some improvement costs of rising prices have stopped with farmers and are in labelling in the pork sector, but I still believe and not being passed up the supply chain to producers and have always maintained that the only viable long-term retailers. answer is a mandatory regime. We already have mandatory The disconnect in the pigmeat supply chain can best regimes for many other foodstuffs; we should have one be illustrated by the relative performance of its constituent for pork and pork products as well. parts in the 12 weeks up to the end of January 2011. In 293WH Pig Farming23 MARCH 2011 Pig Farming 294WH that period, British pig farmers suffered losses estimated Elizabeth Truss (South West Norfolk) (Con): Is it not at £35 million, which equates roughly to £416,000 every a shame that we import 50% of all pig products? Given calendar day. However, over the same 12-week period, that the Chancellor has just given a Budget for growth, the processing sector made an estimated profit of would it not be a good idea to try to become a net £100 million, or just over £1 million a day. Retailers, exporter of pork products, particularly from Norfolk, including Britain’s supermarkets, which set much store which is where my constituency, as well as that of my by their support for British farmers, enjoyed combined hon. Friend, lies? There does not seem to be a level profits of £192 million from pork and pork product playing field on welfare internationally to enable us to sales, equivalent to daily profits of £2.3 million. increase our exports and decrease our imports.

Mr Bacon: My hon. Friend is absolutely right—there Andrew George (St Ives) (LD): On the point about is not a level playing field. BPEX has done a lot of work retailers, particularly supermarkets, the hon. Gentleman on the issue and estimates that 70% of the pork imported well knows that we hope the Government will shortly to this country is produced under animal welfare standards introduce the proposed supermarket adjudicator Bill. that would be illegal here. In other words, 30% of what Although that cannot and should not be a price-sensitive comes in meets our standards, and 70% does not. or price-setting mechanism, it will address the issue of fair dealing. Does he agree that the sooner we pass such Price promotions in supermarkets are a particular a Bill, the sooner we can help not just pig farmers, but problem. Tesco ran a price promotion in January in many other farmers and suppliers to supermarkets? what are called the gondola ends—the ends of the aisles—and it was very successful because of its high visibility. Such promotions can increase sales by up to Mr Bacon: I agree. We all use supermarkets because 200%. If a supermarket has an uplift of 200%, not only in many ways they are efficient, but we love to hate them will it want to keep the promotion going for longer, but because they are very powerful. We are not discussing it will need more product. I fear that, at such times, even perfect competition. People sometimes speak of if supermarkets such as Tesco are adhering, or say that supermarkets as though they were speaking of the they are adhering, to the standards for their imports, market for foreign exchange, but this is an oligopolistic suppliers will be under pressure and will get the product arrangement. Supermarkets have large amounts of power from wherever they can, and the standards will not that they do not always use in the right way, and always be adhered to. sometimes they misuse that power. I welcome the People may be familiar with the concept of stalls and Government’s proposals for an adjudicator. tethers, which are banned in this country. Tesco wrote to me this morning pointing out that they will be Mr Keith Simpson (Broadland) (Con): I congratulate banned in the European Union, but they will not—an my hon. Friend and neighbour on introducing the allowance will still be made for the use of stalls and debate. If he will pardon the pun, this is like “Groundhog tethers, although the period will be restricted. Even so, Day” for other hon. Members and for me, as we have that will not be introduced until 2013, which means that been debating the pig industry for at least 10 years. if one visits a British farm and sees a stall and tether, Although I do not want to turn supermarkets into one will know that it is illegal, whereas if one visits a devils, it seems to me that they stand condemned in two farm in other parts of the EU, one will still be able to ways. The first relates to driving down costs and forcing see stalls and tethers and will then have to audit whether down farmers’ profits, and the second is the labelling they are used for more than four weeks. I really do not itself. They are better now than they ever have been, but know how that can be successfully audited. There are all too often, as my right hon. Friend the Member for still big issues to resolve. East Yorkshire (Mr Knight) pointed out, they put the I have no doubt that the behaviour of some supermarkets Union flag on something and it is only when one reads has helped to suck in imports, which has had the effect the small print that one realises that it is imported of keeping the lion’s share of the profits at the customer- bacon or ham. facing end of the supply chain, and of ramming the rising production costs on to pig farmers. Mr Bacon: My hon. Friend is right. There have been Andrew George: It would be interesting to know some egregious examples involving some of the best whether the promotional campaign to which my hon. known and highly admired supermarkets. Marks & Friend referred was effectively being funded by the Spencer, for example, was guilty of such practices, but I suppliers themselves. I am afraid that, too often, the think that there are fewer of them now. The use of so-called promotional campaigns of two for the price of Union, English and Scottish—I was in Scotland for one are largely or mostly funded by the suppliers, not Christmas—flags in supermarket aisles is better and the retailers. more appropriate, but we are not there yet and he is right that there is still work to do. Some supermarkets Mr Bacon: Of course, that is a common problem with are leading the way on doing what I think would be the very powerful retailers. We have seen it in the book right thing, both for themselves in the long term and for trade—many book publishers have been driven under the industry. I shall mention Morrisons in particular in by that sort of practice by some book chains. We know a moment. that big factors in the marketplace mean that it is There is no doubt that supermarkets in general seem constantly dynamic—no static position, even if it holds to be using their part of the supply chain to insulate for a while, will hold for ever—but that is another thing themselves against the increasing costs of the production that the adjudicator needs to look at, because it is an of pork and other pigmeat product, such as bacon, ham exercise of market power that distorts in a way that and sausages. could sometimes be thought of as anti-competitive. 295WH Pig Farming23 MARCH 2011 Pig Farming 296WH

[Mr Bacon] Well, that will be news to Sir Ian Gibson, because that is exactly what Morrisons does. Mr Opie concludes by Retailers have the power, if they choose to use it, to asserting that supermarkets have no direct relationship make a difference by using their stocking, labelling and with farmers. Unsurprisingly, the BPEX chairman, Stewart pricing policies to promote the prominence of British Houston, described those comments as “complete rubbish”, produce and to ensure a fair return for British farmers, before adding that supermarkets including British pig farmers. I pay particular tribute to “dictate prices to processors who pass those prices directly to Morrisons, which is the only one of the big four producers. It is a very short supply chain and they have nowhere supermarkets to source 100% of its fresh pork from to hide. How much money there is in the supply chain is determined Britain. Morrisons has also committed to using British-only by the price supermarkets pay. It is as simple as that.” meat in its own-label sausages, and earlier this month the company’s chairman, Sir Ian Gibson—I am led to Mr Keith Simpson: Am I right in thinking that believe that he is no relation of the former Member for supermarkets or their agents frequently inspect farms Norwich North—wrote to me about Morrisons’ backing for hygiene, health and animal welfare? for British farmers. He said: “We recognise the pressure pig producers are under and will Mr Bacon: They certainly do. They inspect or employ continue to be strong supporters of the sector. We are the only auditors independently to inspect British farms and major supermarket to have such close control over the provenance say—Tesco has been saying this in correspondence with of its meat, buying pigs directly from Britain’s farmers and processing the pork ourselves”. me over the past few days—that they do the same in relation to their foreign supply chain. I fear, however, He continued: that, when they have promotions at the discounted end “This results in exceptional quality, freshness and value. It also of the market, that audit trail may run out and the enables us to offer industry-leading support to British farming. provenance will not always be as clear as it should be. Our commitment to source 100% British fresh pork is unique among the major supermarkets and in 2011 we expect to reach Hon. Members may be disturbed to hear that there is the milestone of purchasing a million pigs a year from British evidence to suggest that British pork products are quietly farmers”. being withdrawn from the shelves of our largest supermarkets and displaced by imports. Data from That is extremely good news. Sir Ian added: Kantar Worldpanel shows that, over the past three “This policy is popular with customers who we know show a years, the volume of pork on sale in British supermarkets preference for British produce if the price is right. Our combination that does not clearly identify a specific country of of British provenance and quality at an affordable price sees us origin has increased, with a spike in sales of non-British overtrade on pork—that is to say, our share of the pork market exceeds our overall market share”. pork having been recorded recently, in the past few months of this year and late last year. I think there is a lesson there for other supermarkets. Sir Ian continued by saying that not only are Morrisons Families in my constituency and across Britain who make their living from farming pigs may find their “major customers of British farming but we consistently pay over weekly shop at the local supermarket increasingly dispiriting. the market price for our pigs and we always have done. This was In-store observation by BPEX suggests that an overall reflected in the results of an independent satisfaction survey of our pork farmers last year, with over 70% responding that they increase in pork sales is being driven by promotional were happy at the price paid by Morrison”. sales of imported pork that does not carry a quality mark. Imported pork has replaced British pork carrying I salute Morrisons for backing British farmers so either the quality standard or the red tractor. Where wholeheartedly and I wish them every success in their major supermarkets have run promotions on pig products million pig milestone that are multi-buy packs or are heavily discounted on It would be remiss to not also mention supermarkets price, it is mostly imported pork. According to BPEX, such as Waitrose, Marks and Spencer, Aldi, Lidl and just one in five pork loins promoted by Sainsbury’s two the Co-op, which now all source 100% of the fresh pork weeks ago was British, Asda’s three for £10 promotion that they stock from British pig farmers. All of that only included imported pork, and anecdotal evidence pork displays the red tractor mark, which is an independent from BPEX members suggests that Tesco’s recent in-store logo that guarantees that the food it adorns was sourced promotion on the so-called gondola end—end of aisle—of from farms and food companies that meet Britain’s high three pork products for £10 also featured only Danish standards of food safety and hygiene, animal welfare or Dutch meat. and environmental protection. That is borne out by Pork Watch, the bi-monthly Such support, however, is not constant throughout survey of supermarkets conducted by representatives of the retail industry. On the day before the “Pigs Are Still the National Pig Association and by Ladies in Pigs. The Worth It” rally, Mr Andrew Opie, food director at the most recent survey found that the overall number of British Retail Consortium, commented in a press statement pork facings—the shelf space allocated to a product entitled “Pig farmers do have retailers’ support”: line—has fallen from 80% in November last year to “Retailers know some consumers prefer to buy British. 77% in February, which is the lowest figure for the past They’re already doing what they need to to look after 12 months. Facings of the red tractor or the quality their supply chain and secure a sustainable UK pig standard mark for pork—both indicators that British industry”. welfare standards have been adhered to—have also fallen slightly from 75% to 73%, after making small I am afraid that that will raise a hollow laugh from gains last year. It is worth taking a particularly close many pig farmers. Mr Opie goes on: look at Pork Watch’s findings on Tesco: it found that “Supermarkets do not generally pay farmers directly for their facings of “British” on Tesco pork had tumbled from pork.” 73% to 59% and red tractor facings had slumped from 297WH Pig Farming23 MARCH 2011 Pig Farming 298WH

63% to 55%—a fall of 14 percentage points in the that supermarkets, such as Morrisons, are backing British British category, which is the largest decline of facings farmers and backing Britain, they are disproportionately of “British” on pork in any British supermarket. About likely to go and shop in those shops and buy those half of the pork on Tesco’s shelves does not bear the red products. They want to see that the supermarket that tractor, which makes it unlikely that imported pork they endorse by their shopping decisions—it is their meets the UK’s welfare standards in all cases, despite spending the money in their pocket that means a Tesco’s claim that its overseas suppliers’ standards “broadly supermarket is profitable—is also helping to back our equate” to red tractor standards. community, back Britain and back British farmers. Let us be in no doubt that the situation facing British When people see that, they respond. That has an economic pig farmers is extremely serious. Of course, neither effect of its own, which is why Morrisons’ policy has retailers, individual farmers, their industry bodies nor proved to be so successful. Other supermarkets should Members of Parliament can do much to influence world follow suit. commodity prices. Feed is expensive because cereals are The even broader point is that, even if the effects expensive, and that looks unlikely to change in the near were cost-neutral in the long term—I do not believe for future. one moment that they are—the supermarkets should recognise that they are British supermarkets and they Simon Hart (Carmarthen Westand South Pembrokeshire) are succeeding only because we have allowed the planning (Con): I hope that my hon. Friend can help me on one permissions to go through, sometimes against people’s point. Presumably, the story he is telling ends with pig better judgment, and enabled them to have those locations. farmers leaving the industry. If that is the case, is the It is because we go into those supermarkets and spend situation not serious for not just pig farmers, but for our money that they are able to make such profits. I agriculture and indeed rural Britain as a whole? I suggest come back to the question: what kind of market are we that problem goes much further than pig farming. talking about? We are not talking about the market for foreign exchange; we are talking about enormously Mr Bacon: It does go much further than pig farming. powerful players, and with enormous power comes People are beginning to exit the industry and many are enormous responsibility. I am asking the supermarkets worried about whether they can expect to still be in the to exercise that responsibility in a more measured way industry by the end of this year. My point is that if we in the interests of this country. I do not want to rant have a stronger pig farming and farming sector, that is even more on that point, so I shall stop there. good for Britain, for the rural economy and for the It is certainly true that some British supermarkets can economy as a whole, and that that is good for the Tescos and do support British pig farmers, but only one of the of this world and their like. If the supermarkets took a big four sources 100% of its pork in Britain. That is not longer-term view, rather than just worrying about the good enough. In addition, the biggest of the big four next three months and the next quarterly results, it also seems to be slowly turning its back on British would be better for them in the end. It is not an accident farmers, offering cheap imports in the misguided belief— that Morrisons’ fresh meat sales have increased by 12% promoted by the British Retail Consortium but disproved since it announced its 100% British pork policy. I urge by Morrisons—that British shoppers do not care where supermarkets that are not currently doing so to take a the meat comes from as long as the price is right. more pro-British stance. It is incumbent on institutions— Retailers will no doubt respond that they have to meet and such companies are institutions—of the like, size the variable demand of their customers and that in the and power of Tesco to do more than just think about current economic climate price has to be a factor. one set of shareholders; they have to think about the However, I question how much of the instability in the entire community of stakeholders, of which they form pigmeat supply chain is due to fluctuations in customer such a powerful part. demand on price and how much is caused by the Let me give an example. Tesco states on its website internal operations of the supply chain which, as I have that it supports British farmers, and hon. Members will set out, is entirely skewed in favour of retailers. have probably seen the signs as they go into Tesco This is not simply a case of backing our heroic pig showing that it is the biggest customer of British agriculture. farmers against the evil supermarkets because, as we On its website, it identifies 27 farmers whom it supports: have heard, some of our supermarkets are trying to do five produce apples and pears, five produce cheese, nine the right thing. Of course it would be foolish to state produce either beef or lamb or a combination of the that shoppers will buy British whatever the price, but we two, one produces watercress, one produces rapeseed oil also know that it is possible to offer consumers British and one produces milk. There is not a single pig farmer food at high standards of quality and animal welfare all among the 27. at an affordable price. Morrisons have shown that that is possible and, if the producers can get a fair price for Mr David Ruffley (Bury St Edmunds) (Con): Will my their pigs, we will have the best of all possible worlds. hon. Friend explain why the economics mean that When feed prices peaked in 2008, it took six months Morrisons can make a profit by sourcing 100% British for prices to fall back to a sustainable level, during pork when Tesco and the other superstores he has which time many pig farmers had left the industry. mentioned cannot? What is the economic reason he has Today, three-quarters of the remaining farmers say that divined for that? they too will get out of the pig business if things do not improve within the next 12 months. That would be a Mr Bacon: My hon. Friend makes a very interesting tragedy for not only pig farmers, but processors, retailers point because one might think that if everybody could and consumers. British consumers want to buy British do it, they would. My point is they can do it and they produce because they want to support British farmers should. The economic case is that when customers see and they believe that it is the best. I have not wavered in 299WH Pig Farming23 MARCH 2011 Pig Farming 300WH

[Mr Bacon] short-lived phenomenon, and will hopefully lead to prices being a little more buoyant in future than they my belief that a mandatory country of origin labelling have been this year? regime, combined with the widest possible support for the red tractor and quality standard marks, will give Dr Coffey: My right hon. Friend makes a very good shoppers the information they need. point. I hope that that will be the case and, going even The Minister acknowledged in the House last week further, that our British farmers will be able to exploit that the pig industry receives no subsidies. That is quite an export opportunity. It would be interesting to see correct and I am certainly not calling for that to change. Germans eating British sausages, rather than their own However, if the Government value having a British pig bratwurst, but why not? We have won on other fronts in industry that sets the highest standards for quality and Germany in the last century and I am sure that our pig animal welfare, they cannot simply shrug and believe farmers would be proud to go in and make sure that an themselves to be powerless in the face of global food English wurst— prices and grocery behemoths. The Government must Daniel Kawczynski (Shrewsbury and Atcham) (Con): encourage the pigmeat supply chain to work as it should, 1966. so that pig farmers can make a living, not a loss. Pigs were worth it in 2008. They are still worth it today. Dr Coffey: Indeed. My hon. Friend is absolutely right. I was not referring to anything else. 2.59 pm We should be proud of the welfare standards that we enjoy in this country. My hon. Friend the Member for Dr Thérèse Coffey (Suffolk Coastal) (Con): It is a South Norfolk is right that some of the regulations have pleasure to serve under your chairmanship, Mr Bayley. been partly changed, and the task of bringing welfare I congratulate my hon. Friend the Member for South standards up to those enjoyed in the United Kingdom Norfolk (Mr Bacon) on securing the debate. I hope he will be completed by 2013. I call on the Government to will not mind if I take his name in vain. Pigmeat is really ensure that they use all possible influence to make sure important to this country and, dare I say it, there is that that date is not delayed in any way. We have already never a better way to start the day than with a cup of tea heard other examples of derogations that have been and a bacon sandwich. I can hear people salivating extended. It is critical for our industry, and just as around me as I mention that. The state of the industry important for the welfare of the animals that are farmed, has already been well described, and there have been that we do not delay. numerous interventions from hon. Members about some What can we do? The industry is innovative. We have of the points that I will try to present in a slightly heard about Ladies in Pigs, with its lip-smacking recipes different way in my speech. There is no doubt, however, and demonstrations around the country. The industry that the industry needs some action from the Government. has is good at talking about consumer choice and I will ask for clarity on actions that are already under education. We can continue to advertise the fact that way, and make some suggestions about the future. 45% of pig herds in this country are reared outdoors, In 1998, this country was 80% self-sufficient in producing whereas in the rest of Europe it barely reaches 5%. Such enough pigmeat for our needs. This year we are at 48%, things are important, and they are one reason why for reasons that have already been referred to: aspects of British pork is rightly a premium product. I wonder the animal welfare standards; the stall and tether and whether it is appropriate to bring in the following point, castration bans; and the dumping of cheap meat on our and I do not know if the pig industry has ever done this. market, especially when we had the German dioxin feed I have received a number of letters from constituents scare. The current value chain has been well documented. who are concerned about halal labelling on other forms I received my figures from one of my local farmers, of meat. Regularly, meat is presented—one might buy Jimmy Butler of Blythburgh Pork, who has approximately chicken or something similar—as having been prepared 18,000 pigs at any one time, all of which are free range to halal standards. I think I am right in saying that halal and very tasty. I had better not promote any more is irrelevant when it comes to pork, bacon and so on. producers. He told me that farmers effectively end up Therefore, if people want to be confident that they are losing £20 per pig. From the figures he gave me, the not eating meat that has been prepared in a halal farming industry loses £4 million per week, while processors way—or indeed in a kosher way—then eating a pigmeat make £8 million, and retailers make £16 million, profit product would be one particular avenue for them to per week. There are various causes. We have already pursue. heard that the pricing that cannot be agreed with We should also make sure that the industry of butchers supermarkets, but there is also an issue about the price continues to recommend itself to consumers. I think of feedstock. I appreciate that the Government cannot that we all regret the loss of any high street butcher control that particular aspect of the input, but they can from our constituencies, and I am proud that we have so do something about the output prices in their proposed many—do not worry, Mr Bayley, I will not be naming legislation for groceries and the inclusion of a draft them all, or any. Butchers provide a professional insight adjudicator code for supermarkets. There is also the for consumers and help with choice. I hope that they issue of welfare standards. will be encouraged by the information in the Budget today on small business rate relief. There will be significant Mr Knight: My hon. Friend has introduced an important reductions for properties with rateable values of less issue to the debate—the dioxin scare in Germany, which than £12,000—an example of the Government supporting has caused a fall-off in demand for pork in that country. high street shops, including butchers, to ensure that Is there a sign of hope in the fact that the lack of they can continue to sell good British pork and other demand for pork in Germany is likely to be a very pig products. 301WH Pig Farming23 MARCH 2011 Pig Farming 302WH

My hon. Friend the Member for South Norfolk said pig— which has just come into the United Kingdom; that we are not calling for a subsidy. I completely agree that was a great pleasure. Today’s debate is about the with that, and I do not believe that the industry is future of pig farming, which is one of the most important calling for it either. However, the Government could parts of agriculture in East Anglia, particularly in Suffolk make sure that they take advantage of my hon. Friend’s and Norfolk. I am therefore delighted that we have excellent Food Labelling Regulations (Amendment) Bill. replying to today’s debate a great friend of East Anglia, We were very strong on that issue before the election Suffolk and my constituency. The Minister knows the and I am very keen to see that we make good progress. issues better than many and I am sure that he will do all That would not cost money, it is free to do, and it would he can to help us resolve them. have a dramatic effect on consumer education, as the The hon. Member for South Norfolk talked about a consumer would know that the products that they buy number of important issues, including the fact that the that sport the British flag were raised and reared here pig industry slid back into loss making in 2010, its and conform to UK welfare standards. It might also be problems exacerbated by the rise in wheat prices and the worth trying to pull together all the different pieces of fact that retailers are not passing on their profits to pig legislation on UK food labelling and having a more producers. According to the National Farmers Union, simplified process. My hon. Friend’s Bill might be a over the past three years pig producers have been losing good avenue for doing so. £20 a pig, whereas retailers have continued to make a It would be helpful if the Minister clarified the position profit of £100 a pig. That is unacceptable. Retailers on Government buying standards for food, which were should show more corporate responsibility in supporting due to come into effect this month. I understand that British food producers. that is not a buy-British campaign, but it is supposed to Of course, the increasing cost of fuel will further ensure that a high quality standard of food is purchased exacerbate the problems in the pig industry, so we were by Government. I look forward to clarification on that. pleased to hear in today’s Budget statement about the Another slightly controversial question concerns fuel stabiliser, which will help many farmers. Another feedstock. Pigswill was banned as a source of food for important problem are the difficulties in many parts of animals, which was understandable at the time. I am not the country with getting planning permission for local suggesting that all pig farmers want pigswill to return, abattoirs, so that we can reduce food miles. I am delighted especially those at the premium end, but have the that we finally have in East Anglia, in my constituency, Government considered reviewing that policy as a way an abattoir. Local pigs can now be slaughtered locally, of trying to reduce the input costs for our farmers? Will which is a very good thing. the Minister also clarify what the UK pigmeat supply chain task force is doing, as well as the EU advisory We have talked about broader questions of Britain’s group on pigmeat? I only learned about that group food sustainability and the importance of supporting a yesterday through a response to a question about pigs profitable and sustainable agricultural sector to improve in the House of Lords? It is good to see that the other that. In the past decade or so, the amount of food place takes an interest in this issue too. I appreciate that consumed in Britain that is produced here has fallen the Government cannot just go out and tell people to quite dramatically: we now produce only about 40% of buy pigmeat, but there is a lot that they can do to ensure the food that we eat. With climate change already that the product that we are proud to see on our shelves, affecting many major agricultural producers such as when carrying a British label, is deemed to have been Australia, where extreme temperatures could undermine produced to the same welfare standards anywhere in a major world supplier of wheat, it is all the more this country. I look forward to the action of a great important that we promote food sustainability and friend of farming—the Minister. support British pig farmers as a means of doing that. I am pleased that that matter has already been raised: the Finally, I must apologise for forgetting to congratulate Minister talked about it in response to parliamentary my hon. Friend the Member for South Norfolk on questions from my hon. Friend the Member for North securing this debate. I hope that it will not be groundhog Warwickshire (Dan Byles), who touched on it in the day, as my hon. Friend the Member for Broadland context of supporting our armed forces. It is important (Mr Simpson) suggested, but all I can say is that, with that we make sure that Britain can feed itself and that the friends of the farming industry who are present in we have proper food security and food sustainability for the Chamber today, the Minister will know that we will the future. not give up. One important point that has been teased out in the 2.59 pm debate is that British pig producers have much higher Dr Daniel Poulter (Central Suffolk and North Ipswich) standards of traceability and animal welfare than many (Con): It is a great pleasure to serve under your of their overseas competitors, but they are not competing chairmanship, Mr Bayley. I congratulate my hon. Friend on a level playing field in the supermarkets where they the Member for South Norfolk (Mr Bacon) on securing sell their goods. An important related point is that 30% the debate, which is very important not just for us in of imported pork does not meet UK standards of East Anglia, but for many rural communities all over animal welfare, but it is still sold in our supermarkets. the country. Pig farming and farming in general have suffered in the past few years. Although it is important Mr Bacon: Actually, BPEX estimates that 70% of that we have a comprehensive debate about pig farming, imported pork does not meet the British standard, and it also helps us to raise a number of issues that are that only 30% does. important to the wider farming sector. One of my first engagements as a new MP last year Dr Poulter: I thank my hon. Friend for that clarification, was a visit to Stuston farm in my constituency, where I which makes the point even more forcefully. As he says, was introduced to a new breed of pig—the mangalitsa only 30% of imported pork in our supermarkets meets 303WH Pig Farming23 MARCH 2011 Pig Farming 304WH

[Dr Poulter] platinum-plating European legislation, whereas countries that do not like the legislation tend to ignore it. He is UK standards, according to BPEX. We need action absolutely right to say that we need to seek consistency from the Government to put the onus on supermarkets across the EU, and that needs to be taken up at a to show greater corporate responsibility and to provide European level. We want a level playing field so that our a more level playing field for British food producers and farmers can have a thriving and prosperous future. the goods they sell. I do not want to detain colleagues much longer, because we want to hear from the Minister. We have Simon Hart: The Minister might be able to comment talked much about honest food labelling, which applies on the appropriateness and legality of using the planning across the farming sector, but particularly to British system to impose such conditions on supermarkets. pork. At the moment, bacon only has to be sliced in the UK to be labelled British, which is unacceptable. UK Dr Poulter: I thank my hon. Friend for that, and I law requires that labelling should not be misleading, look forward to the Minister covering that that in his which is a good thing, but it does not define how much concluding remarks. British involvement is required before produce can be counted as British. Traditionally, slaughtering animals Mr Graham Stuart (Beverley and Holderness) (Con): in this country would count, so calling something British My hon. Friend is making a powerful point about the lamb or British pork could mean that although the need for a level playing field. Pig farmers in my constituency meat was imported, slaughter and packaging took place are not asking to be given any artificial support; they in the UK, but now meat need only be sliced here to be are asking to compete on a level basis. They go to other labelled British. That can be misleading in supermarkets. countries and see farmers putting in new sow stalls We want stronger action on labelling, and I am sure that when they themselves spent hundreds of thousands of the Bill to be introduced by my hon. Friend the Member pounds per unit replacing their stalls 10 years ago, and for South Norfolk will go a good way towards countering they are rightly upset. Does my hon. Friend agree that that great problem, which would also help to support other countries should not be allowed a derogation in British pig farmers. due course? If our farmers have had to make that investment, so should farmers elsewhere and they should We have talked a lot about getting greater corporate not be allowed to import their meat into this country responsibility from our retailers. I mentioned the fact unless they follow the same rules. that while pig farmers have been losing £20 per pig over the past three years, our retailers have been making Dr Poulter: My hon. Friend is absolutely right and profits of £100 to £120 per pig. Surely there must be an makes the point very powerfully. The fact is that there is onus on those retailers not only to support honest food not a level playing field, particularly in the European labelling and promote the fact that British farmers Union. Stricter EU animal welfare laws for pigs have produce pork to higher animal welfare standards and been agreed, but they will come fully into force only in with greater traceability, but to want to support local 2013. As he forcefully argues, we need those standards and British produce. That has to be a good thing. As we to be applied in Europe. However, it is not just a know from the example of Morrisons, cited by my hon. question of standards being applied universally; our Friend the Member for South Norfolk, consumers want supermarkets must also show corporate responsibility. to buy British and support local food producers. Consumers If overseas food producers do not produce food to the in East Anglia, Suffolk and Norfolk want to support same high standards of animal welfare and traceability our local food producers. That would be a good thing as British farmers, our supermarkets should not buy for supermarkets to do. food from them. We need to see that corporate responsibility from the industry. Roger Williams (Brecon and Radnorshire) (LD): I could not resist attending the debate, if only for a few Jim Shannon (Strangford) (DUP): I represent an area minutes. Does the hon. Gentleman agree that one in Northern Ireland where almost everyone used to consequence of the pricing system used by supermarkets keep pigs, sometimes in large numbers. We are now is that pig production in this country is driven down down to only one producer, albeit a big one, which and more pigs are produced in sub-standard conditions indicates that we are hearing the death knell of the pig in other countries? That is a serious problem. industry.In some parts of Europe, regulation is non-existent, so does the hon. Gentleman feel that the Minister needs to convey to European Ministers and to Brussels the Dr Poulter: My hon. Friend is right. The key point, fact that whereas regulation is enforced with almost which my hon. Friend the Member for Beverley and evangelical zeal in parts of the United Kingdom, the Holderness (Mr Stuart) raised, is the need for a level same is not true in other parts of Europe? playing field. We are proud that Britain has high animal welfare standards and traceability, but if our farmers Dr Poulter: I thank the hon. Gentleman for that are not competing on a level playing field with farmers forceful intervention, and I absolutely agree with him. in Europe and overseas, with 70% of overseas pork not British pig farmers have struggled a great deal over the being produced to the same high animal welfare standards, past few years, and it is a great pity that the number of that is wrong. There is an onus on our supermarkets to people farming pigs has consistently declined throughout show greater corporate responsibility and to make a the UK. We would like that to be put right and we stand by supporting local food producers and ensuring would like to see greater support for pig farmers. He is that they help their customers to understand the issues. right to mention the EU, because over the past decade I hope that we will hear strong words of support on that or so Whitehall has been fond of gold-plating and from the Minister. 305WH Pig Farming23 MARCH 2011 Pig Farming 306WH

We have talked today about the importance of backing away with it until 2012. The Minister is a friend to British pig farmers, because we believe in backing British farming, and I know that he will fight our corner very food sustainability and security. We have talked about hard to ensure that there is no extension. This has gone the fact that there should be a level playing field for on for far too many years and driven far too many pig British farmers and pork producers, with their high farmers out of business. animal welfare standards and traceability compared Pig farmers do not want to join the subsidy junket. with the standards of their European competitors. We One or two might, but generally they want a fair price have talked about the need for honest food labelling, for their pigmeat. I have been to many local producers which we will discuss further in the main Chamber in in my constituency to see the farrowing and the outdoor the near future. The Minister is a great friend of farming pig systems. We have some of the best, if not the best, and we look forward to his reply to the debate and to pig systems in the world, but that costs more money. We him telling us how he and the Government will support have all made this plea to the Minister: let us look at the British pig industry. this matter every way we can. Let us help pig farmers to brand their produce with a local label—Devon meat, of Hugh Bayley (in the Chair): I want to call the Front-Bench course, is better than any, but perhaps Norfolk meat is spokesmen to start the winding-up speeches at half-past 3, nearly as good—and to market it so we can get an which leaves us time for one further speech. increase in price. We give Morrisons top marks, but other supermarkets have lower grades, so let us say to 3.23 pm the supermarkets that they cannot go on making pig farmers produce pork at a loss, because the pork will Neil Parish (Tiverton and Honiton) (Con): Thank not be there. Once pork in the rest of Europe has you for calling me, Mr Bayley, and I thank my hon. decreased—the German situation—and production has Friend the Member for South Norfolk (Mr Bacon) for fallen, there will not be this vast amount of pork securing this opportune debate. sloshing about in the European market. What the I want to concentrate first on the profitability of the supermarkets are doing is all very short-sighted. pig sector. It is obvious that pig farmers cannot go on We should look at ways that Government can help, losing £20 per pig—something needs to be done. At but this is also about the power of the consumer. We other times when pig farmers lost money due to high must get the message over to consumers that they must cereal prices, cereal prices subsequently fell, so pig go into the supermarkets, look at the label and ensure farmers could bridge the gap and the profitability of that the Union Jack is not just for processing, but that pigs returned. This time, we cannot guarantee that the the pork was reared, slaughtered and processed in the peak in cereal prices will be here for only a short while; UK. That someone can still put a Union Jack on a label it may be here for quite a lot longer. It is always difficult just for processing is a problem. Often, people will pick to predict a market while thinking on your feet. that product up as though it is a genuine British product. We must say clearly to the supermarkets that it does I welcome the debate. The number of Members present no good to drive pig farmers out of business, which is this afternoon, even with the Budget debate going on, what they are doing. It is very short-sighted and has a shows how important we feel the topic is. I also welcome knock-on effect on the cereal producer, because we the presence of the Minister and the shadow Minister. produce a lot of barley and wheat for feed that goes to the pig and poultry sectors. As many hon. Members have said, the pig industry is 3.28 pm unsubsidised. It does not get any single farm payments, and pig farmers have to make their money back from Mr William Bain (Glasgow North East) (Lab): It is a the marketplace. We have to help them to do so through pleasure to serve under your chairmanship once more, the grocery adjudicator and others. Hon. Members also Mr Bayley. I congratulate the hon. Member for South talked about labelling, and although the “British” label Norfolk (Mr Bacon) on securing this important debate, is not always easy to get, there are regional labels, which which is also timely, given the number of pig farmers have legal standing and are easier to maintain. When I who recently attended the House and put their points was in the European Parliament, the French, and on the future of the British pig industry very forcefully. particularly the Italians, seemed to manage to label I commend the contributions made by the hon. Members everything with a region and, largely, get away with it. for Suffolk Coastal (Dr Coffey), for Central Suffolk and We have to be keen on this. North Ipswich (Dr Poulter) and for Tiverton and Honiton Back in the ’90s, we introduced extra welfare standards (Neil Parish), who expressed their concerns, but also for pig farming. Why did we bring those in? Because their hopes for the expansion of the industry. They were our people are very keen on animal welfare, but, to put united in their call for reform of the supply chain, which it bluntly, if they are keen on animal welfare, they I shall address later. should put their money where their mouth is. Clearly, The number of pigs in the UK declined from 7.9 million higher standards make costs higher, so we must ensure in 1996-98 to around 4.7 million in 2009, although that produce is properly labelled in supermarkets so numbers have stabilised since, and world pork production that consumers know what they are buying and are able has increased in recent years after pauses in growth to buy a British product. earlier in the decade. The United Nations Food and Our main competitors in the pig industry are the Agriculture Organisation estimated that global production Danes, probably closely followed by the Germans, and reached 106.5 million tonnes in 2009, and 108.5 million they are using sow stalls and tethers to this day. I tonnes in 2010. Pork accounted for 37.8% of global remember trying to table an amendment to get them meat production in 2010, and pork production is rising banned in Denmark by 2004, but the Danes are getting in the Asia-Pacific region, but falling in Latin America. 307WH Pig Farming23 MARCH 2011 Pig Farming 308WH

[Mr William Bain] Mr Stuart: I do not know whether the hon. Gentleman, from the rural idyll that is his seat, will be able to answer From 2005 until 2010, the European Union exported this question. He said that he wants the Government more pork than any other region or trading bloc, but vigorously to act on food labelling. Why was so little the Food and Agricultural Policy Research Institute has done during the 13 years of the previous Administration, established that EU exports fell by 19% in 2009, and it although I know he was here for only a little while forecasts a progressive loss in EU global market share, during that time? which is partly accounted for by the differentials in animal welfare treatment. It identifies Brazil and the Mr Bain: I am grateful for the hon. Gentleman’s United States as areas with a quickly expanding global intervention. I remind him, as I did the hon. Member pork market share. for Christchurch (Mr Chope) during a debate on the That raises the question whether the EU, in negotiating Sustainable Livestock Bill some months ago, that there to complete the Doha round of the World Trade are three arable farms at the very top of my constituency. Organisation trade talks, ought to consider trying to I am hoping to visit them during the Easter recess. level up environmental and animal welfare commitments Indeed, I have had a good discussion with the National and guarantees across the world, given the competition Farmers Union Scotland on a range of issues in the that the European pig industry faces from Brazil, the past few weeks. US and other regions. That is an important point. The hon. Member for Beverley and Holderness In this country, the pig industry has made real efforts (Mr Stuart) raises an interesting point. We can bat on reform—for example, greater use of anaerobic digestion around what did or did not happen during the past 13 to cut down on food waste—and has operated to the years, but what will certainly be most effective is cross-EU highest level of animal welfare, but, as hon. Members standards in this area. He knows that the food labelling have pointed out, food labelling and supply chain problems directive is before the European Parliament, and that it are placing our farmers in increasing financial difficulties. may have a Second Reading by early summer. We The previous Government set up a taskforce on the should focus our efforts and show unity across the pigmeat supply chain, which produced a code of practice House on getting decent standards that will protect the on labelling pork and pork products. It was based on pig industry and other parts of our arable and livestock the best practice available from the Food Standards farming industries. Agency and had the support of the industry. I want to address the anomaly that the hon. Member for Central Suffolk and North Ipswich pointed out—that On research and development, the taskforce sought is, food that is processed in the UK can be labelled as to extend new systems for surveillance and epidemiology, produced in this country. We need reform and clarity IT systems for integrating health schemes, slaughterhouse across the EU through regulations to deal with that surveillance and quality assurance schemes, and schemes issue. for reducing waste and emissions to the environment from the supply chain. There may be many measures in The third area in which we seek Government action is the Budget that I will not be able to support— in respect of a plan for the food industry. The previous [Interruption.] I am sure that hon. Members will not be Government commissioned the report “Food Matters”, too surprised by that. under the auspices of the Cabinet Office, and the study “Food 2030”, under the auspices of the Department for Environment, Food and Rural Affairs, but circumstances Daniel Kawczynski (Shrewsbury and Atcham) (Con): have moved on. The Foresight report sets out new Shocked. challenges for better use of water and soil. It also sets the global challenge of feeding 9 billion people by 2050, but with potentially fewer resources—increasing food Mr Bain: Shocked, even—dismayed, perhaps. However, production by 50%, but in a sustainable way. I hope that pig producers, and indeed BPEX, will take up one of the welcome measures in today’s Budget: the To meet the challenges of sustainable food production, expansion of small business relief for research and which the pig industry will be involved with, and to development. That has the potential to improve the show that we can meet our climate change reduction competitiveness of the British pig industry. commitments, the Opposition and the NFU call on the Government to adopt a proper plan for food, which The Opposition call on the Government to act in should include the pig industry. If there is to be a plan three areas. The first is ensuring that the cross-EU for growth arising from today’s Budget, the UK’s largest enforcement of directives 2001/88/EC and 2001/93/EC manufacturing industry—namely, agriculture—cannot on banning close confinement sow stalls takes effect on be left out. The plan should contain strong proposals 1 January 2013, as scheduled. I am aware that the for a groceries code adjudicator with the statutory Government are supporting an intra-EU ban on the sale power to tackle unfairness and inequity wherever they of eggs from countries that do not introduce the new are found throughout food supply chains. As hon. provisions on egg laying hens from 1 January 2012. will Members have pointed out, such an ironing out and they adopt the same position in respect of any breach of levelling of the market would be enormously beneficial the directives on pig welfare standards by any member to our pigmeat producers. state? I hope that the Minister addresses that point in his winding-up speech. Jim Shannon: One of the subjects that the hon. Secondly, on food labelling, we call on the Government Gentleman has not mentioned—perhaps he is about to vigorously to support country of origin labelling in do so—is the supermarket ombudsman, for whom I their discussions at the Council of the European Union, think there is a role. There is a margin between the as alluded to in the coalition Government agreement. £16 million per week profit made by shops and the 309WH Pig Farming23 MARCH 2011 Pig Farming 310WH

£8 million per week that the pig producer gets. Is there a I shall try to address some of the issues that have method whereby the supermarket ombudsman could arisen during the debate. My hon. Friends will be aware bring those figures closer together, thereby keeping pig that there has always been pig cycle. Pigs have a relatively farmers in production? short gestation and growth period, so the rise or fall in supply is a reasonably short-term phenomenon. They Mr Bain: It is precisely that ability to take steps to were always muck or money as supply and demand iron out market inequalities that we are calling for. The fluctuated slightly, but the level of fluctuation has become previous Government called the institution a supermarket much worse, and the £20 a pig loss to which several of ombudsman; the new Government call it the groceries my hon. Friends referred reveals a dramatic downside code adjudicator. What matters is the powers that it will of the cycle. It is unfortunate that the cycle was already have, and we look forward to the draft Bill that the beginning to drop off when feed prices were hiked up Department for Business, Innovation and Skills promised because of the grain price. That exacerbated the problem, to publish by Easter to see how rigorous it will be in but we are there, and the situation is horrendous. helping the sector and the dairy sector as well. My hon. Friend the Member for South Norfolk Hon. Members have alluded to the fact that the referred to some of the costs that our producers incur. British pig industry needs not a handout, but a hand up. Stalls and tethers were first phased out in the early With the combination of an increase in research and 1990s, and were banned completely by 1999. Tethers development, a strong groceries code adjudicator, better were banned in the rest of Europe in 2006, and stalls and stronger EU food labelling rules, fairer supply will be banned by 2013, although, as my hon. Friend chains and reform of the WTO animal welfare rules, we correctly pointed out, it will be permissible to keep sows can collectively ensure a brighter future for our pig in stalls for up to four weeks after service, and that farmers, which is what they want and deserve. brings me to the question asked by the hon. Member for Glasgow North East (Mr Bain). I assure him that the Government are absolutely opposed to any extension or 3.39 pm derogation. As with battery cages for chickens, countries The Minister of State, Department for Environment, have known for a long time that the change was coming, Food and Rural Affairs (Mr James Paice): I too, welcome and farmers have no excuse for not making the transition. you to the Chair, Mr Bayley. I genuinely congratulate The hon. Gentleman asked me quite rightly about my hon. Friend the Member for South Norfolk (Mr Bacon). enforcement, and the fact that farmers will be allowed During his time here, he has been a stalwart supporter to have stalls on their farm in which to keep sows for of the pig industry, and I am sure that that is not four weeks will create a big challenge. Responsibility for because of his name. His Bill, to which I shall return, is enforcement will rest with the competent authority—usually being presented to the House for the fourth time, which the Department of Agriculture in member states—and shows his determination. I have attended innumerable I recognise the issue. We must keep pressing the Commission breakfast and other meetings that he has hosted on the to ensure proper enforcement, because that is a worrying pig industry, and it is fortunate to have someone who is loophole. so determined to support it and the pig producers in his constituency. Mr Graham Stuart: Will my right hon. Friend say On one occasion, most of the Suffolk and Norfolk whether the Government have consistently made the MPs were in the Chamber, which demonstrated not just case that there should be no derogation after 2013, and the importance of the concentration of the pig industry whether he has any idea of when the Commission might in those two counties—[Interruption.] My colleagues publish details on enforcement? The earlier we see the from east Yorkshire also joined us. Those are the main proposed enforcement mechanisms, the more we will be pig producing parts of the UK, and the fact that so able to influence them before they are introduced, when many hon. Members decided to attend demonstrates they will be harder to change. the importance of the pig industry to them, and it reflects the lobbying that has taken place. As a former Mr Paice: The answer to the first part of my hon. pig producer in the constituency of my hon. Friend Friend’s question is that we constantly tell the Commission the Member for Central Suffolk and North Ipswich that when a rule is introduced, every country should (Dr Poulter), I entirely understand its importance. comply with it, and that there should be no derogations. As my hon. Friend the Member for South Norfolk He is right in saying that we have not seen any proposals rightly said, the industry is vital. He said that its total for enforcement, and I am not aware that we have seen value is £8.7 billion, which is a significant sum in the any assessment of what stage other countries are at. retail sector. Others hon. Members have referred to the There were efforts to do that with conventional battery collapse of the pig herd since the mid-1990s. It is cages, but there were difficulties. The matter is important, impossible to say precisely how much of that is attributable and I will chase the matter up to see whether there has to the unilateral ban on stalls and tethers that we been any assessment of what other countries have done. introduced, but it is obviously a significant part. To be fair, we know that many countries with a significant One of the changes over 20, 30 or 40 years has been number of pig farmers, such as Denmark, which is a rationalisation into specialist pig units. Years ago, pigs major pig producing country, have converted, but I were one unit on a generalised farm, and a rise in grain cannot tell my hon. Friend precisely what the proportions prices had less impact, because farmers were feeding are and how many remain to convert. their own grain to their pigs, so they lost on one side The hon. Member for Glasgow North East challenged and gained on the other. Now, more and more farmers me on whether we would support an intra-EU ban on are specialist pig producers, and must buy all their feed, those countries that have not introduced the measure. I so they can only lose from rising grain prices. shall be completely honest, as I always try to be. We 311WH Pig Farming23 MARCH 2011 Pig Farming 312WH

[Mr Paice] to by overseas producers whose products the supermarkets import. Even if the Government cannot do that, however, have not considered that yet, but he makes a valid point. does the Minister agree that there is an interest on the I made the point about eggs, and there is no logical part of consumers and of Government in knowing reason why we should not do the same for pigmeat. whether such claims are true? However, we want everyone to convert, and until we see some sort of assessment, we cannot speculate too much, Mr Paice: My hon. Friend is right and we stand but I entirely accept the hon. Gentleman’s point. four-square behind the assertion that it is important that the consumer is properly informed about what is I have just been passed a note saying that no official available for sale. There should be an effective traceability information is available about how far EU countries chain that can verify the claims made on the label. have moved towards complying with the directive. Denmark and the Netherlands have said that they will comply, At this point, I should probably discuss the issue of but the situation in some other countries is different and labelling. I welcome my hon. Friend’s Bill, but he knows vaguer. There are different rules on castration and as well as I do that there are question marks—to say the tail-docking in different countries, and there is a least—about the legality of the UK legislating alone on competitiveness issue. Some hon. Members referred to food labelling. There is good news, however, and since supermarket specifications and, as my hon. Friend the we came to office, two things have happened. The hon. Member for South Norfolk said, claims by Tesco and Member for Glasgow North East made a point about others about their supply sources. It is reasonable and the pigmeat supply chain taskforce and the code agreed acceptable, of course, for retailers to ensure that their with the industry. That happened before we took office, supply chains comply with British standards, and it is and I am the first to recognise that. Since we took office, not in the Government’s gift to check whether they do. a bigger agreement on all meat has taken place between There is no doubt that tail-docking and castration rules the supermarkets, the meat trade, the catering and are different in other countries, and it is only right and hospitality trades and the producers, resulting in a proper that they should insist on the same standards. I much broader voluntary code of practice concerning shall return to the supermarket issue. country of origin labelling. That is the key issue. That code is now in place, and we are currently doing an That leads me to my last point on welfare. My hon. evaluation exercise to baseline it so that we can measure Friend the Member for Suffolk Coastal (Dr Coffey) progress in the future. referred to pigs being kept outdoors. Anyone who drives through Suffolk and South Norfolk will see that tens of Alongside that, there are negotiations on the EU thousands of sows are kept outdoors, even through the food information regulation. Since taking office, we recent winter and the snow before Christmas. There is have toughened up the UK’s approach to support the no doubt that keeping pigs outdoors is more expensive idea of mandatory labelling for meat and meat products, in production costs. Productivity is lower, there are not and that is what the regulation currently requires. As my so many pigs a year from the sows, and growth rates are hon. Friend the Member for South Norfolk says, there slightly affected. Those systems are being adopted because is a long way to go and I do not want to forecast the the drive for better welfare from retailers has pushed outcome. At the moment, however, the food information them that way, but higher management standards are regulation would achieve what he seeks with his Bill, required and farmers do not receive the price for their except that it would apply not only in the UK but across pigs that that higher standard demands. the EU. That is the best way forward, and potentially that is encouraging news. I was with a group of Agriculture Ministers in Belgium before Christmas, and we were taken to a modern, My hon. Friend the Member for Tiverton and Honiton highly efficient Belgian pig farm operated in totally (Neil Parish) asked about regional labels. There is nothing enclosed buildings, where the hygiene must have been to stop anybody from marketing and using regional incredible, as there was no disease. Nevertheless, there labels, and we strongly support protected name were just spartan, bare shelves with a few rubber balls indicators—PNIs—in principle. The two examples I hanging on chains for the pigs to play with. Those pigs give will not make or break the pig industry, but Gloucester compete with our pigs, which are reared outdoors. Old Spot pigmeat, and more recently Cumberland sausages, Apparently, British consumers prefer pigs that have both in the pigmeat world, have been approved for that been reared outdoors, but they are not always told status. PNIs are a marketing tool, but like any other about it. form of marketing they are effective only if the labelling is honest about the country of origin where the pig was My hon. Friends referred to the overall issue of born, reared and slaughtered. That is the point about supply, and to dioxins, which was a problem from labelling espoused by my hon. Friend. Germany that we had in January. The Commission introduced a private purchase scheme for a short space Mr Bacon: Does the Minister agree that the most of time, and some pigmeat was taken off the market, important thing about labelling, including mandatory which helped for a while. What concerned me was the labelling, is to stamp on the canard that giving full, allegation—I say only that—that certain supermarkets accurate information to consumers somehow distorts were dropping their British suppliers because the European the market, because consumers might act on that mainland market was awash with cheap pigmeat as a information? The only possible consequence of accurate result of the dioxin scare. To me, that undermines the food labelling is to assist the clear operation of market claims made by my hon. Friend the Member for South preferences. Norfolk about supermarkets looking after our sector. Mr Paice: I entirely agree. We are constantly told by Mr Bacon: As the Minister said, it is not in the retailers, “We are doing what the consumer demands.” Government’s gift to check whether claims made by Well, let the consumer demand, but make sure that they supermarkets about animal welfare standards are adhered are properly informed so that we know that the demand 313WH Pig Farming23 MARCH 2011 Pig Farming 314WH is genuine. There is no reason for anybody, whether as opposed to from a processer, as other supermarkets producer or retailer, to be afraid of the consumer, and do. Usually, however, supermarkets are closely involved we should not be afraid of consumers being properly in sourcing their meat. informed. I entirely share the general thrust of the comments I will touch on the two final issues raised by hon. made by my hon. Friend the Member for South Norfolk, Members. First, the coalition Government are committed and those of everybody else who has spoken. If to introducing Government buying standards, and we supermarkets and retailers believe that future consumers are on schedule to do so. Some parts of that relate to will want to buy British pigmeat, they have a responsibility food but concern health, rather than the DEFRA rules to ensure the supply of British pigmeat for the future, on food, so I will concentrate on pigmeat. Our clear and that lies behind the adjudicator and the code. The objective is that we should spend taxpayers’ money only Competition Commission’s conclusions were not about on food that has been produced to British standards, as farmers but about consumers. It was concerned that long as it does not cost any more—there are plenty of retailers were shifting too much risk on to the supply examples and pieces of case work to demonstrate that it side, and that in future the consumer might lose because will not cost more. That is only right and fair, and it the supply side was constrained. Therefore, it is in the means using farm assurance schemes as benchmarks to interests of the consumer to ensure a supply of British ensure that it takes place. That objective is on schedule. pigmeat for the future. I share the view held by my hon. My final point, on which I have been challenged, Friends that although no one pretends that there is a concerns the adjudicator. That is the responsibility of single solution to the challenges we face, supermarkets the Department for Business, Innovation and Skills and have a big role to play. To be fair, it is not only Morrisons it is clear that the Department is determined to go that takes the more responsible line to which my hon. forward with it. I was asked about its role, and the Friend referred. adjudicator will investigate complaints from anyone in the supply chain who has been affected, either directly I am grateful for the compliments that I have received or indirectly, by what they believe to be a breach of the from hon. Friends about my feelings on this matter, but code. Furthermore, the issue can be dealt with anonymously. that is not really important. What matters is what Those are the two big issues that we will see when the the Government do, and we have made a pledge on the legislation is published. adjudicator and are making dramatic progress on the Finally, let me turn to the wider issue of supermarkets. labelling front and on Government buying standards. I must resist the temptation to identify individual We have dealt with the issue of potential GM contamination supermarkets and say what each is doing, because I do of imports, and we are determined to do everything we not have full knowledge of that. Morrisons is distinct, can in an industry that, as others have said, is unsubsidised because it has its own abattoirs, unlike any other and vitally important. I congratulate my hon. Friend on supermarket. That is why it buys pigs from the farmer securing this debate. 315WH 23 MARCH 2011 Rural Broadband 316WH

Rural Broadband today’s debate, is it not this? Communities that are geographically isolated should not be allowed to become digitally isolated. 3.59 pm Rory Stewart: That is a fantastic point. Of course, the Rory Stewart (Penrith and The Border) (Con): This is complexity of what the Government are dealing with is a very oversubscribed subject, and we have only a short astonishing. It is not just topography or technology; it time. I am keen for all hon. Members present to intervene. includes cost, legal issues such as European state aid Some 15 hon. Members have been in touch with me regulations, and issues such as the spectrum auction, about that. I ask them to give me three or four minutes which I hope to come on to briefly. to get under way and then I will try to bring everyone in. May I make a little progress for another minute and a I begin by thanking my hon. Friend the Minister very half before I take any more interventions? This project much. He came up to Nenthead in my constituency on owes an enormous amount to ministerial leadership—not what was a hairy day over the top of the Alston fell. He just that of the Minister, but of my right hon. Friend saw us install the new broadband network and launched the Secretary of State and the Department for Environment, our conference. In general, this is a very positive story. Food and Rural Affairs—and has seen enormous progress It is the beginning of a new story, but a very positive to date. However, it is a revolution in methodology and one. I thank also all the MPs here today. Incredible procurement. People are having to push boundaries on work is being done constituency by constituency. If procurement and methodology that would have been there is a broader constitutional lesson from all this, it is unimaginable 11 months previously. People are having about the role of Members of Parliament in driving to be much more flexible. Instead of going for big, forward superfast broadband. framework, county council solutions, they are having to respond, often parish by parish, to very different I say a huge thank you also to the officials. We have technological solutions within a single area of 100 square had incredible support from Anton Draper in the miles. That involves risk. It involves generous investment Department for Communities and Local Government, by the Government. It involves piloting measures. from Mike Kiely and Robert Sullivan in the Department for Business, Innovation and Skills, from Alan Cook at What does this mean? For the new policy, it means Cumbria county council and from communities themselves. three lessons. We need to share the lessons from all the This is above all a story about community pressure and pilots much more effectively around the country. I hope Government responding to it. Within the confines of that this is the beginning of a series of Westminster Hall Cumbria, there has been huge pressure from a diverse debates—if anyone has the patience—in which we can range of communities. The people and places include take the lessons further. We need to look much more Libby Bateman from Kirkby Stephen, Miles Mandelson, seriously at finance. Of course, there is great inspiration who has constructed one of the most exciting superfast from the United States in the 1920s and ’30s, when a networks imaginable in Great Asby, Leith-Lyvennet dedicated bank was set up for communities to electrify Broadband and Northern Fells Broadband. They have rural areas. The green investment bank is a good beginning all been pushing ahead on this issue. for our Government in that direction. The big society bank is another good beginning. I would like to see There is a huge need, which I am sure all hon. finance facilities available specifically for parishes and Members will speak to, particularly for rural areas—for communities to be able to move ahead with their own our economies above all. Isolation cripples our economies. broadband. As a group of MPs, we tend to have in our constituencies far more self-employed people than any other constituencies The final issue is the rural spectrum auction. We talk in Britain and far more people working from home. a lot about broadband. We must think about mobile Broadband is essential for that, but also for public coverage. An Ofcom consultation is taking place at the services such as health and education. It allows my moment. Ofcom is pushing only for 95% coverage for neighbour with Parkinson’s disease, instead of making this spectrum. We need to shove it up from that, because a four and a half hour round trip to Newcastle general 95% coverage will mean that most of the areas represented hospital, to have a live video link to the consultant in this Chamber will not be covered. On those grounds, without leaving home. The same is true of distance I will take my second intervention. education and learning. Simon Hart (Carmarthen Westand South Pembrokeshire) The challenges, which again are not things I need to (Con): Does my hon. Friend agree that now is an excellent talk about at length today, are challenges of topography, time to urge the Minister to address the twin problems scarce population and the amazing shifting sands of of broadband and mobile phone coverage, not one or technology. Every time I talk to the Minister, a new the other and not even sequentially, because in rural person has emerged with a new and astonishing solution. areas it would be impossible to deliver on the big society I am thinking of point-to-point microwave links; the pledge without both those issues being addressed? fact that one Minister is pushing satellite technology; cellular solutions; long-term evolution solutions; and, Rory Stewart: Absolutely. today, people talking about moving signals down electric wire. Jesse Norman (Hereford and South Herefordshire) (Con): I would like to reinforce a suggestion that has Mr Greg Knight (East Yorkshire) (Con): I am grateful already been made twofold; I would echo both suggestions to my hon. Friend for giving way; I am sorry if I am a that have been made so far. We have had a second minute early according to his guidelines! If there is one summit in Herefordshire. We have been one of the very message that we all want the Minister to take away from fortunate recipients of the first pilots, for which I am 317WH Rural Broadband23 MARCH 2011 Rural Broadband 318WH enormously grateful to the Minister and to officials. Dr Thérèse Coffey (Suffolk Coastal) (Con): On that The overwhelming feedback that has come through has point, I could not agree more with my hon. Friend. picked up both the mobile point and the point about There is a risk that the Treasury will demand a high 100% coverage in rural areas. That is regarded as the price now, but it will cost a fortune later, when we are basic requirement. There is a sense of digital entitlement reliant on delivery of services, as he described, through that will not be thwarted. That means an interesting the use of mobile broadband. The cost of putting in mix of technologies, which takes us that final mile to extra provision then will cost the country so much the person who is living in the mountains. money that we will be told that we cannot afford to do it. Rory Stewart: Those were two very important and effective interventions. Mobile telephone coverage is Rory Stewart: Does anyone else wish to intervene on better in Kabul than in Cumbria. Any of us who travels mobiles? around Europe will find that the coverage is much better in the Norwegian fjords than it is in Cornwall or Mr Richard Bacon (South Norfolk) (Con): My hon. Wales. That really matters for us. Friend reminds me that when I was in the mountains of Kyrgyzstan, I noted that coverage was much better than Anne Marie Morris (Newton Abbot) (Con): I endorse in South Norfolk. what my hon. Friend says about coverage. In Devon, May I point out that six of the Members here for this my part of the world, 9% of people have either no debate were here for the previous debate on pig farming? coverage at all or less than 2 megabits per second, which They stayed because we all represent isolated rural is horrendous, and 22% of rural businesses say that areas, and many of the problems that we face apply not without superfast broadband, they are going to move only to agriculture but to broadband. Does my hon. nowhere fast, so it is imperative that we take action on Friend agree that what was said about the Treasury is that. particularly important? Getting it right, and getting 100% coverage, will enable the kind of economic growth Rory Stewart: I thank my hon. Friend very much. On and the extra tax base, with more tax being paid by the point about mobile coverage, the statistics on coverage rural communities, that will do a great deal to get us out are very dodgy. In the Ofcom consultation document, of the present economic hole in which we find ourselves. there is a shocking paragraph in which it says, “We do not have the methodology to work out exactly what the Rory Stewart: That is a brilliant point, and a very current coverage is in rural areas and therefore it is good one to make about the Budget. The Budget focuses difficult for us to factor into the auction what the above all on two things—what we are doing with fuel economic benefits will be of achieving 100% coverage in and what we are doing for small and medium-sized rural areas.” Therefore, Ofcom is saying that it is likely enterprises in trying to support exactly the sort of to push ahead with a lower coverage obligation, not on businesses that exist in our areas. Without superfast the basis of any research but on the basis of an assumption broadband and mobile coverage, it is difficult to understand that research would be difficult and that the results how they will flourish. would be unquantifiable. I do not think that anyone in this Chamber thinks that that would be acceptable. Mr Graham Stuart (Beverley and Holderness) (Con): Neil Parish (Tiverton and Honiton) (Con): As another I am grateful to my hon. Friend for giving way. As Devon MP, I would like to reinforce what my hon. usual, he speaks powerfully and succinctly. He spoke of Friend the Member for Newton Abbot (Anne Marie pushing the Government to go from 95% to 98% in the Morris) said. We have beautiful countryside in Devon, auction. Is there any reason why we should not aim for but we also have very poor roads. Therefore, if we had 100%—that we set it out as a universal service base? good, fast broadband, many of the businesses could We in the House should send a clear message to the remain in the area and could be built up, along with all Minister and others that unless there are overwhelming the health and education needs being met. This is about financial or technical arguments against it we should delivering competitive broadband throughout rural areas. look for 100% coverage. We have long had universal I urge the Minister to ensure that when bids are being post, but universal digital access is more important than considered from various areas, Devon is given a bite of the post ever was. Perhaps we need to send that signal, the cherry. and ensure that Ministers cannot chivvy away at a few percentage points on the side. Rory Stewart: To finish on mobile coverage, the rural spectrum auction will be essential. As people are aware, Rory Stewart: My hon. Friend makes a powerful and a big auction of 4G is being consulted on at the moment. important point. The answer must distinguish between That includes very exciting spectrum that comes from broadband coverage and mobile phone coverage. We the digital switchover. That is spectrum that allows us to have a universal commitment for broadband coverage, push signals a very long distance, but perhaps not so and we are pushing for a 2 megabits universal service many data down those signals. That is the kind of commitment by 2015, but mobile phone coverage is not spectrum that we would like to get for rural areas. in place. Were we to push for 100%, as my hon. Friend Everyone in this Chamber who can join us in pushing the Member for Hereford and South Herefordshire the Government from 95% to perhaps 98% in the rural (Jesse Norman) suggested, instead of the mobile telephone spectrum auction and pushing back against the Treasury, companies paying the Treasury for that spectrum we which will say that it will not receive as much money would end up with the Treasury paying them to take it. from the mobile phone providers if that kind of rural It is perfectly possible, as was suggested, that we could requirement is put in place— make a powerful economic argument to the Treasury on 319WH Rural Broadband23 MARCH 2011 Rural Broadband 320WH

[Rory Stewart] Julian Smith (Skipton and Ripon) (Con): I am a little concerned that my hon. Friend is about to finish his why it might make sense for the Treasury to pay mobile speech, because I would like briefly to pay tribute to telephone providers to take it, but to do so we would his leadership on this matter, on which he is the most need some very robust figures. knowledgeable person in the House. I hope that Cumbria, One sad thing about the Ofcom debate is that we do together with north Yorkshire, will build the arc of not yet have a group powerful enough to put those superfast broadband across rural northern Britain. figures in place. Such figures would prove that 92% of Before he concludes, will my hon. Friend talk a little those businesses in Penrith and The Border that employ about the responsibility of communities in dealing with fewer than 10 people would benefit enormously. In the matter? I am concerned that the debate has gone a addition—this applies in all our areas, because many little too far towards Government solutions and council retired people live there—applications for telemedicine solutions. He has played an exceptional role in getting and telehealth with mobile phone coverage are much communities motivated. How does he do it? more exciting than those that currently exist on broadband. Rory Stewart: I give way to the hon. Member for Neil Carmichael (Stroud) (Con): I want to say how Newcastle upon Tyne Central (Chi Onwurah). important it is for businesses to get proper access to Chi Onwurah (Newcastle upon Tyne Central) (Lab): I broadband and mobile coverage. I would add that in thank the hon. Gentleman for giving way, and I congratulate rural areas, it is good to facilitate independent living him on securing this debate. Will he adequately distinguish through good communications. That is another aspect between superfast broadband and the kind of broadband to be considered. that small businesses need in order to make the economic difference that we all want them to make as quickly as Rory Stewart: I am aware that I should be coming to possible? The Government do not always distinguish a conclusion, but at the end of my speech I shall draw between broadband, which enables small businesses to together some of these interventions. The lessons show offer their services to the entire world, and superfast that it will be difficult. broadband which may have economic benefits in future that have yet to be fully quantified. Jason McCartney (Colne Valley) (Con): I thank my hon. Friend for giving way—and for having his finger Rory Stewart: I now give way to my hon. Friend the on the digital pulse, given the number of Members Member for Mid Norfolk (George Freeman). packed into the Chamber. I do not know why we are not George Freeman (Mid Norfolk) (Con): I thank my having an hour-and-a-half debate, although I suspect hon. Friend for giving way, and pay tribute to his that my hon. Friend tried for one. leadership in this important field. He mentioned the We heard in the Budget that superfast broadband will Treasury, and I wish to speak about the payback potential be a big benefit for enterprise zones. I am in a rural of such investment. community, and my businesses were badly hit in December As with so many infrastructure matters, the payback because of the heavy snow. Andel, a firm that is based is enormous, and I urge the Minister to make the case to at the top of the valley in Marsden, wanted to Skype the Treasury. The Chancellor gave a stunning Budget when doing business with eastern Europe, but it could today, outlining investment in East Anglia—for science not; the firm raised the matter with me a couple of in Norwich and Cambridge and for the A11. It could weeks ago. Can we try to ensure that the money that is herald a renaissance of small business and high technology, raised—something mentioned by my hon. Friend—is but it will not happen without good broadband. With ring-fenced, and that some of the funds raised through it, we would be paid back in spades—it would pay huge the 4G auction are invested in the superfast broadband dividends to the Treasury. Somehow, we must find a network? mechanism to anticipate that growth, using it now to fund the infrastructure that will feed it. Rory Stewart: I give way again. Rory Stewart: I give way to my hon. Friend the Karl McCartney (Lincoln) (Con): My hon. Friend Member for Hexham (Guy Opperman). may not be aware that below Lincoln are urban areas, within the constituency but outside the city boundary, Guy Opperman (Hexham) (Con): I represent undoubtedly and including Bracebridge heath, that still have problems the most remote and hard-to-please area. [Laughter.] with a lack of suitable broadband provision. All The Minister must understand that there is a way Conservative councils, particularly North Kesteven district forward, provided that we harness the efforts being council and local Conservative councillor Mike Gallagher, made for existing communications. If we do so, there have been active in seeking to resolve the matter, and will be a great addition. have established a good connections group as part of the Lincolnshire sustainable community strategy. Indeed, Rory Stewart: I give way once more. they have applied to BDUK—Broadband Delivery Andrew Bingham (High Peak) (Con): My hon. Friend UK—for pilot scheme funding to improve the provision is generous in giving way. He started the debate, but he of broadband in those areas. Does my hon. Friend has not had time to speak. Does he concede that we are agree that we need to work together to improve our talking about rolling out broadband to rural businesses constituents’ access to suitable broadband connectivity to help support them? If we do not do this, businesses and to enhance the competitiveness of businesses in our will leave rural areas for urban areas and end up constituencies? exacerbating rural deprivation. Rory Stewart: Absolutely. I give way once more. Pamela Nash (Airdrie and Shotts) (Lab) rose— 321WH Rural Broadband23 MARCH 2011 Rural Broadband 322WH

Rory Stewart: I give way to the hon. Lady. I thank you, Mr Bayley, for your patience during this rather eccentric debate. Pamela Nash: Does the hon. Gentleman agree that the Government have so far concentrated on fibre-optics as being the answer to the problems of all rural communities 4.22 pm and broadband? Does he agree that we should diversify that money in the next spending round? The Parliamentary Under-Secretary of State for Culture, Olympics, Media and Sport (Mr Edward Vaizey): Iam Rory Stewart: I thank all who have intervened. I shall grateful for the opportunity to serve under your try to conclude in 60 seconds, and I shall take no more chairmanship, Mr Bayley. May I say what a lovely time interventions. I thank the hon. Member for Airdrie and I spent in your constituency visiting the National Railway Shotts (Pamela Nash) for what she said, and all who museum, which was placed in York by Margaret Thatcher, intervened on the subject of communities, because I who pioneered the role of culture in urban regeneration? wish to conclude by mentioning those two factors. I know that you will want to acknowledge that. The Government are handling two complex issues. One is how to deal with a rapidly changing technological I thank my hon. Friend the Member for Penrith and picture, where the fibre-optic investment that seems The Border (Rory Stewart) for initiating the debate. sensible this year may seem less sensible, or the 4G With a one-line Whip on a Wednesday afternoon following investment next year, or moving signal down an electric the Budget statement, I had expected a quiet discussion wire the year after. between him and me, but I should have known that when he is involved in something it always becomes The most important thing is not just the flexibility much bigger than it says on the paper. with technology or, indeed, the distinctions that the hon. Member for Airdrie and Shotts drew between the I pay tribute to my 17 Conservative colleagues who 2 meg access many businesses want today and the have turned up and to the hon. Members for Airdrie and superfast access they might want in future but the Shotts (Pamela Nash) and for Newcastle upon Tyne question of communities. Our procurement processes Central (Chi Onwurah), who is no longer here, but who have tended to be very centralised and one size fits all, is a former Ofcom employee and perhaps should be of which Cornwall was the absolute epitome, with more lobbied by hon. Members on rural mobile coverage. than £100 million being spent on an area of 1,000 Having heard interventions from Carmarthen, Herefordshire, square miles and delivered through the county council East Yorkshire, Suffolk, Norfolk, Gloucestershire, Devon, with a major telecoms provider. Lincolnshire, Northumberland and Lancashire, no one As my hon. Friend the Member for Skipton and can doubt rural communities’desire to achieve broadband Ripon (Julian Smith) suggested, it is essential that we roll-out. Although it would be iniquitous to pick a give parishes a voice. Parishes and communities will single example, I pay tribute to my hon. Friend the provide financing and labour, they will waive wayleaves, Member for Stroud (Neil Carmichael) for the simple they will dig their own trenches and they will connect reason that my wife was born in Stroud. In fact, her their own fibre-optic, allowing us to achieve much birth appeared on the front page of the Stroud newspaper broader coverage and much faster speeds in a fraction because she was born on new year’s day—but enough of of the time. That will be possible only if the Government that. hold their nerve, resist the temptation, often from county I concur with my hon. Friend the Member for Penrith councils, to spread the money thinly across a large area and The Border, who praised me and the Secretary of and allow genuine pilots in response to communities. State for the work we are doing on broadband roll-out. That requires the commercial sector to be more flexible, We have managed to purloin £530 million to help to allowing communities to connect to their point of presences. fund broadband roll-out. It is important to make the Data charging rates must be reasonable, and if the point that that is specifically for places where the market community digs and installs the fibre it must not be will not deliver. The broadband for about 66% of the charged as though the commercial provider had dug it. population will be delivered by the market—I understand The Government are absolutely on the right track the tone of the debate; that will broadly be BT and with those huge challenges. Virgin Media—but the rest of the money is set aside for mainly rural communities. Eric Ollerenshaw (Lancaster and Fleetwood) (Con): I wish to reinforce my hon. Friend’s argument. I have a I also concur with my hon. Friend in his praise for cautionary tale from my own patch, in the parishes of key officials—Rob Sullivan, Mike Kiely and all the Over Wyresdale and Quernmore. The community, which others who work so hard at Broadband Delivery UK, is prepared to do the digging and where farmers are on as well as officials now at the Department for Culture, board, made a bid, but it has been swept into a county-wide Media and Sport supervising the process. They have European regional funding bid involving a national worked intensively with local authorities. Four pilot internet provider. It will not get what it wants and will areas, three of which are represented in the debate, are lose all the economic benefits of a community doing about to go out to tender. A second wave is on the things for itself. The service will be far more costly and stocks; 11 areas have already expressed an interest and will deliver less than the community could do itself. there are two more days for a local authority or local community to express an interest in bidding for broadband Rory Stewart: On that note, I will conclude by making delivery. Hon. Members are free to speak to any areas four points: first, huge thanks to the Government; that have not yet expressed an interest in bidding, and secondly, in the spectrum auction we must push for we hope to announce the next wave towards the end of much broader coverage of rural mobile; thirdly, there May. We are also working closely with the devolved must be much more flexibility for communities in Administrations of Scotland, Wales and Northern Ireland procurement; and, fourthly, I wish everyone good luck. to ensure that this is a United Kingdom initiative. 323WH Rural Broadband23 MARCH 2011 Rural Broadband 324WH

[Mr Edward Vaizey] that I am extremely anxious to see community broadband solutions, but—perhaps this is pushing back on my I am confident that we will soon make rapid progress. hon. Friends—but they are in a position to sit down The pilots have been extremely important for Broadband and discuss with their county councils the best way Delivery UK in understanding and learning about the forward on the bidding process. It is easier for a county tendering process, and although people might feel that council, perhaps with its own money and additional it has taken some time, the hard work of the four money from Europe, to seek match funding from the pilots—the vanguard—will ensure that future pilots are Government, but its tender need not be a big company taken forward much more quickly in understanding the or big government solution and can include community tendering process and in continuous learning following broadband solutions. the tendering process, as we begin to dig holes in the ground to lay broadband. The key is to ensure that community broadband A number of other key points were made. To a solutions are technically joined up so that that network certain extent, the debate morphed into a discussion of can be available for other users. Should, for any reason, mobile coverage. I want to make these points. I stress a community broadband operator fall away, that network that the pilots and the future waves of broadband would still be available to be used and integrated into delivery are technology-neutral. The best broadband is the county-wide network. I urge my hon. Friends who, probably delivered by fibre, but there will be other on behalf of their constituents, have rightly expressed solutions in some rural areas, such as digital fibre an interest in rural broadband to discuss with their points, whereby WiMax will take the broadband further, county councils how they are bidding, urge them to put and mobile solutions. There will also be satellite technology in place one or two people who will lead the process full solutions. time and ensure that community and parish voices are heard in proposing the solution. Rural mobile coverage is extremely important. Ofcom has begun its consultation on the auction of 4G spectrum. The debate has shown that the broadband initiative is I ask hon. Members who bump into the chief executives gaining real momentum. The Government have put in of the four chief mobile operators to urge them not to place the money. We are also putting in place deregulatory turn to their learned friends and litigate with the initiatives—for example, on deployment of broadband Government over the rules. We are anxious to get the across telegraph poles for the first time and on wayleaves. spectrum out there; it has been a protracted process. We We are anxious to work. Towards the end of the year, are very aware of the needs of rural coverage, and I am we will begin to see a process whereby counties, when discussing with Ofcom how we ensure that it is available they are ready, can simply come to us with a proposal—and, under the spectrum allocation. Let us not forget that I hope, some funding of their own—which we will be in spectrum allocation is important to the whole UK and a position to match. to the UK economy, especially with the rise of the smart phone. I hear what my hon. Friend the Member for Penrith and The Border says about the possibility of broadband Hugh Bayley (in the Chair): I congratulate the Minister roll-out being a big government solution. He will know on getting so much of his speech into the time available. 325WH 23 MARCH 2011 Disability Living Allowance 326WH

Disability Living Allowance and mobility components. PIP would consist of a mobility and daily living component, but unlike the existing care component, the new daily living component would comprise 4.30 pm two rates, not three. An individual’s adaptation to their John Robertson (Glasgow North West) (Lab): I will impairment would be taken into account in determining give colleagues leaving the previous debate an opportunity entitlement to PIP, presumably as a cost-cutting exercise. to sneak out—I am sorry that they cannot stay. I will not deal now with the plans to remove DLA I am delighted to have secured this debate and I look mobility from individuals in residential care, as those forward to hearing the Minister’s reply and her comments plans were the subject of another Westminster Hall on the wider issues that I am about to raise. There is debate that was secured by the hon. Member for Arfon probably no better place to begin debating disability (Hywel Williams). I will simply add that it is reassuring living allowance than with the mobility component for that the Government will review mobility provisions for blind people. I tabled an amendment to the Welfare people living in care settings, but I still note the intention Reform Act 2009, which is due to come into force in to remove DLA mobility for people in residential care April this year and enables blind people to claim the in 2013, albeit that that is one year later than originally higher rate mobility component of DLA. However, if proposed. the Government go ahead with the proposals in the One of my most serious concerns relates to the consultation on a new assessment for DLA to remove Government’s plans to end automatic entitlement to the amendment that I successfully tabled to the 2009 DLA for people who clearly ought to have it, including Act, about 20,000 blind people across the UK could the higher mobility component for people who have lose out. That means that 20,000 blind people in the severe mental health problems, who are deafblind or are UK, including 2,000 blind people in Scotland and 300 in severely visually impaired. Individuals with those disabilities, my own city of Glasgow alone, could lose access to the along with people who are double amputees, automatically higher rate mobility component DLA. That means they qualify for the higher rate, because they meet the strict would lose at least £1,500 a year. That is a considerable criteria on the severity of their impairment. sum for anyone, but it is a vital lifeline for blind people, That automatic entitlement is a clear and administratively who generally come from poor backgrounds. efficient way of identifying disabled people with the The public consultation by the Department of Work highest level of mobility needs. In future, each case will and Pensions on DLA reform, which was published in be looked at individually, except the cases of people December last year, raised concerns about the issue. who are living with a terminal illness. Organisations for The specific threat to the DLA mobility component disabled people tell me that they do not believe that that appears in point 6 on page 4 of the document, which is a sensible approach, as it will increase the costs of says: assessment while leading to the same outcome as the “Currently individuals on DLA with certain health conditions original system, and people with the most severe or impairments are automatically entitled to specific rates of the impairments will still receive the higher rate of benefit. benefit without a full assessment. We propose that for Personal As I have mentioned, in three weeks’ time, more than Independence Payment there are no automatic entitlements, other than the special rules for people who are terminally ill. Instead, 20,000 people in the UK with severe sight loss will be each case will be looked at individually, considering the impact of entitled, for the first time, to the higher rate mobility the impairment or health condition, rather than basing the decision component of DLA and they will receive the extra on the health condition or impairment itself.” £30 a week that they need in their pockets to maintain a decent quality of life. The reason why I tabled my Mr David Hamilton (Midlothian) (Lab): Can my amendment to the 2009 Act in the first place was hon. Friend think of a way in which a blind person’s because of my strongly held belief that there is no good condition can improve? Why is there a need for a reason for discriminating between someone who faces review? physical barriers to mobility and someone who is unable to move around safely and independently as a result of John Robertson: My hon. Friend makes a good point blindness. and I will use a couple of cases as examples as I go I want to tell the Minister about one of my constituents, through my speech. as his case was the one that spurred me on to table the On page 37 of the DWP consultation document, amendment to the 2009 Act in the first place. Alan there is a list of automatic entitlements that the Government McDonald has been blind from birth, has orientation propose to remove, including one for blind people—the problems and faces huge hurdles in getting around. He “severely visually impaired”. That entitlement was brought is unable to use public transport because of his difficulties in as result of my amendment to the 2009 Act. The in getting on and off buses and trains. Either he has to DWP consultation posed many more questions than it spend his other benefits on taxis, although they are answered. We learned that the assessment for the new meant to provide other support, or he is forced to rely personal independence payment, which I will call “PIP”, on his sister to give him a lift to wherever he needs to go, will otherwise, he has to stay at home. “prioritise support on those individuals who face the greatest Alan’s blindness is not the only barrier to his mobility. day-to-day challenges and who are therefore likely to experience For example, when I tabled the amendment to the 2009 higher costs.” Act he was awaiting a second kidney transplant and However, that wording was sufficiently vague that it was due to undergo surgery for hardening of the arteries. could be overshadowed and interpreted in the light of Despite all those difficulties, however, he was told on other developments. Rules on eligibility would be restricted several occasions that he simply did not qualify for in such a way as to question the ongoing entitlement of the higher- rate mobility component of DLA, because disabled people in receipt of the lowest rates of the care he was physically able to walk. Yes, he could walk—he 327WH Disability Living Allowance23 MARCH 2011 Disability Living Allowance 328WH

[John Robertson] Several wrong assumptions could be made about the effectiveness of aids and adaptations. They might work could walk into wheelie bins, or into a set of traffic for some individuals, but others might struggle with lights, or even into the middle of the road where he them. Issuing someone with a cane or a low-vision aid would be knocked down; but he could walk, so he did such as a monocular, does not necessarily mean that not get the money. that person will continue to use it, or use it correctly. The barriers that Alan faces are just as great as those Even if the aids and adaptations are used appropriately, faced by someone who cannot walk, and the current they are likely to have only limited uses. For example, a situation is nonsensical. I believe that the Minister has liquid level indicator might help someone safely to to consider such things. It is unbelievable that somebody make a hot drink, but it will not make it any easier for with such disabilities might not receive the higher rate them to make a meal to go with that drink. How will the of disability allowance in two years’ time, having finally Government help these people? received it after all these years. Blind people such as Alan are justifiably angry about I know of another gentleman, David Griffith from the discriminatory and unfair treatment that they receive, Walthamstow in London, who receives the mobility but they will feel even angrier and let down when the component of DLA because he is deafblind, like Alan. DLA mobility component, which comes into being in He uses his DLA to pay for taxis, and for other support April, is taken away from them in just two years’ time. in getting out and about. He also tries to walk in his That will put them back to square one. local area, and has recently applied for a guide dog because he has had a few near misses with cars of late. Many charities have contacted me because they are However, having heard a feature on the BBC Radio 4 alarmed about the Government’s proposals. For example, programme “In Touch,” he is now worried that becoming the Guide Dogs for the Blind Association is concerned a guide dog owner might result in the removal of his about the proposal that PIP should replace DLA. In DLA. Under the proposals, a guide dog would enhance particular, the association is concerned about the proposal his life and make him safer in one element of his in the DWP report on DLA reform proposals to mobility, but he would never have the independence “take greater account of aids and adaptations”. that sighted people have. He would not to able to jump Taking into account the use of aids and adaptations out of the way of the car that was about to hit him, and when assessing eligibility could inadvertently penalise he might travel on a bus that he did not mean to get on an individual who uses such equipment to try to reduce in the first place. some of the difficulties that they face as a disabled Yvonne Fovargue (Makerfield) (Lab): Does my hon. person. Friend agree that something else that is hitting people is the proposed extension of the waiting period for DLA Mr Andrew Smith (Oxford East) (Lab): I commend from three to six months? A constituent came to me my hon. Friend’s campaign and the passion with which who had been blinded in a road accident and was he is putting a very powerful case. Has he been contacted considering adaptations. He faced the cost of those by the National Autistic Society? I ask that because straight away, and under the proposal he would have to there is enormous concern on the part of those who wait even longer for the money. care for autistic people and those with family members who are autistic, as DLA is crucial for communication, John Robertson: My hon. Friend makes a very good travel and services for autistic people. It is crucial that point. She is absolutely right, and perhaps the Minister access to DLA is retained for autistic people as well as could reflect on the impact of that increased period on for the other people whom my hon. Friend has mentioned. people who do not have the extra time to wait. They need the money now, not in six months’ time. There is a danger that people like David will turn down help such John Robertson: I thank my right hon. Friend, who as that provided through mobility training with a guide has more than a little reputation of looking after these dog or a cane for fear of losing a benefit that they would people, both as a Minister and as a member of the still need, with or without the mobility aid. What does previous Government. I congratulate him on the work the Minister propose to do for Alan and David and that he has done. I have been contacted by so many people like them? groups that I could not possibly name them all in my In conclusion, the Government state that 3 million speech today. If I miss any of them out, it is not because people receive DLA and that the budget will reach I want to do so, but because my speech is time-limited, £12 billion, and they draw the conclusion that the but yes, I have received correspondence from the National benefit is not fit for purpose. I wonder whether a better Autistic Society and I thank my right hon. Friend for conclusion would be that the benefit rightly reaches the his input. millions of people it is supposed to help. Reform might Any reduction in disability-related benefits simply be necessary, and disabled people have expressed themselves because of someone’s access to equipment could on the changes they would like, not least shorter application significantly inhibit their efforts to lead a more independent forms in line with their disability and, of course, quicker life. Disability-related benefits enable people not only to receipt of the money. Are we not in danger, however, of live independently, but to participate in community going so far with the reforms that we lose sight of what activities. Such community engagement could include DLA was originally set up for? DLA is there to assist volunteering, which is a core component of the big people with disabilities that make life more expensive. It society and could help someone to gain skills and is there to help people stretch their incomes that little experience that could enable them to go on to seek and bit further, so that they can achieve the levels of obtain work. independence and enjoy the opportunities that their 329WH Disability Living Allowance23 MARCH 2011 Disability Living Allowance 330WH non-disabled peers take for granted. Are we really saying John Robertson: Will the Minister accept that the that a fifth of today’s case load is no longer in need of impression is that it is the budget and not the people that support? Have we really examined how the reforms who have the disabilities that will determine how much will exacerbate disability poverty? Those questions are, people get? It is not possible to budget for people with in my view, central to this debate on the Government’s disabilities, but if we do we have to say, “We’re going to plans for DLA. let only so many people get disability allowance.” I hope that the Minister listens to and answers my questions. Let me reiterate some of them. Will the Maria Miller: I am sure the hon. Gentleman knows Government confirm that their intention is to revise that the Government have to make difficult decisions in this policy, which has been hard fought for and pursued many areas, not only regarding how much we spend to over a number of years by parliamentarians on every support disabled people. At a time of financial crisis, as side? Will the higher rate mobility component for individuals a result of the problems with controlling costs under the with severe visual impairments be awarded for just two previous Administration, we have to make tough decisions, years? Have the Government modelled the net loss of but the decision that we have made is that we want to household income when individuals lose entitlement to support the most vulnerable people through DLA and DLA, and does their equality impact assessment its successor, and also through many of the other benefits acknowledge the lack of social care and other support that we have. The introduction of universal credit will for people with less complex needs? How much will that do a great deal to support those people in the hon. cost? What steps will the Government take to ensure Gentleman’s constituency, and in mine, who are disabled. that the assessment for PIP is not just a cost-cutting exercise but is fair and accurate, especially with regard Pamela Nash (Airdrie and Shotts) (Lab) rose— to its suitability for people with fluctuating or mental health conditions, and those with lower-incidence Maria Miller: Perhaps the hon. Lady could let me conditions? At a time when the Government wish to make a little progress. tackle bureaucracy and simplify the benefits system, how can it make sense to insist that all disabled people, Pamela Nash: It was on that point. including individuals who evidently have severe needs, undergo regular reassessment? Maria Miller: I shall just make some progress. I am calling for greater clarification on what impact The hon. Member for Glasgow North West has long the 20% cuts will have on determining who will be battled to change how blind and severely impaired eligible for the new PIP and at what level. Will people people are treated under the old DLA regime, and that who qualify for the lowest rate of DLA qualify for PIP serves as an excellent example of the shortcomings under the new system? Will the Government ensure that evident in DLA because of its complexity, poor targeting those who qualify for the higher rate mobility component and inflexibility. I certainly applaud his determination because they are deemed to have severe blindness can to get the support that disabled people need. The failure continue to receive PIP via that route? Finally, will a of his constituent to get the support that he needed comprehensive training programme on blindness be through DLA is a great example of why we need made available for assessors for PIP? I look forward to reform. the Minister’s answers. If the hon. Gentleman had not had to deal with the faulty framework of the DLA in the first place, it might 4.46 pm have taken him slightly less determination, and slightly The Parliamentary Under-Secretary of State for Work less than two years—some people might say less than and Pensions (Maria Miller): It is a pleasure to serve 10—to make the changes in primary legislation and under your chairmanship of this very important debate, then in regulations that were needed to get the present Mr Bayley. I congratulate the hon. Member for Glasgow measure supporting severely visually impaired individuals North West (John Robertson) on securing both the on the statute book. That is why we are taking a debate and the attendance of so many Members when fundamentally fresh approach to dealing with that area the Budget debate is taking place in the Chamber. I of benefits through the personal independence payment, welcome the opportunity to set out again some of the so that we can adjust it and the assessments through facts to counter some of the assumptions that have been regulations in the first instance and maintain the flexibility made, not only by organisations but by some people required to ensure that the benefit reflects people’s who have been listening to the debate thus far. I hope experiences and is adaptable enough to cope with the that the hon. Gentleman’s questions are answered in my dynamic nature of society’s response to disability. comments, but if he feels that any of them need to be The personal independence payment has been designed further investigated I will be very happy to do that with with the support of disabled people and specialists to him separately. provide an objective assessment and ensure that we can I would first like to ensure that it is very clear to help disabled people overcome the barriers that they Members that the Government are not talking about a face to living full and independent lives. That means 20% cut in the current case load, but about ensuring looking past broad categories of impairment and labels that the budget for DLA is kept under control in the and instead treating people as individuals. In doing so, future, and that the rate of increase that we have seen—some we must consider the impact of all disabilities: not only 30% in the past eight years—does not continue to grow physical disabilities—some criticise the DLA for favouring as steeply.That is important, because the misunderstanding people with physical disabilities—but the mental, cognitive about how the budget works has caused great distress and sensory impairments that many of us know need among my constituents, the hon. Gentleman’s constituents more support. The right hon. Member for Oxford East and, I am sure, other Members’ constituents. (Mr Smith) mentioned individuals dealing with autism. 331WH Disability Living Allowance23 MARCH 2011 Disability Living Allowance 332WH

[Maria Miller] independent life. The hon. Gentleman mentioned the example of guide dogs. I will explain why the issue is Some people deal with multiple disabilities as well. That not being understood as well as it needs to be. is the only way for us to deliver targeted benefit that is I assure hon. Members that we have absolutely no fair to all those who need extra help and who face the intention of penalising visually impaired people who biggest challenges leading independent lives. can get out and about and live independently only with The personal independence payment also addresses the help of a guide dog, largely because the activities yet another of the many weaknesses of DLA. The DLA that the assessment is likely to consider are not activities assessment for the higher rate of mobility component, with which a guide dog can necessarily help. Guide dogs on which the hon. Member for Glasgow North West are extremely intelligent animals, but they do not help focused, is framed in the rather simplistic medical context people eat, drink, manage their personal care, take of whether the person can walk. In practice, that means treatments or communicate. Well, some of them help that people facing broader issues involving mental health people communicate, but in a different way. Although problems, learning disabilities or sensory impairments guide dogs help people get out and about, they do not such as blindness could be left, as they have been, in themselves improve an individual’s physical ability to disadvantaged under that narrow definition. With the walk or to plan a journey. I hope that reassures the hon. introduction of PIP, what we want to ask is not simply Gentleman that there is little opportunity for someone whether people can walk but whether they can get out who uses a guide dog to feel that they will be penalised and about, plan a route and navigate from A to B, for making that important adaptation. because that is the challenge that disabled people face. Another aspect on which we have been asking for people’s thoughts in the consultation is whether we John Robertson: I understand what the Minister is could use the new personal independence payment trying to say, but just because I can plan a route does assessment as an opportunity to signpost people to not mean that I can go that route. We are trying to help additional support and help, or a touch point for getting people who have been assessed as unable to work, but people the help that they need. I hope that the hon. who might be able to work if we can get them to the Gentleman will agree that we should not miss such an right place. My constituent Alan can work at a computer, opportunity. Too often, disabled people do not get but first he must get there, and the only way for him to treatment for all the conditions with which they must do so is for somebody to be with him. He must get a lift, cope. The assessment is an opportunity. and he must be accompanied. If people have no one to do that for them or cannot afford a taxi, it cannot happen. The money that Alan gets is vital, and he is not Jason McCartney (Colne Valley) (Con): I congratulate alone. There are lots of people like him all over the the hon. Member for Glasgow North West (John country. Why must they be reassessed all the time? They Robertson) on securing this important debate. Does the know what they are like. They have been through the Minister agree that it is important, having heard some system already. of the details in this debate, that we cut through the myths, worries and concerns about the changes and stress the point that personal independence plans will Maria Miller: The hon. Gentleman raises several bring more targeted help to those who really need it? As issues. DLA is not an out-of-work benefit. People in a result, many people will get more help than they do at work can claim it, as they can claim access to work, the moment. which can also help them. However, I think his fundamental point is that we must recognise the true barriers that people face, not simply say that because they have a Maria Miller: My hon. Friend could well be right. particular impairment they should receive a particular The assessment is being finalised. We want to ensure rate. We must understand the realities of their lives. He that support reaches people. I like to say that it is about has made that point clearly on behalf of his constituent. getting help to the people who find it most difficult to I agree absolutely. That is how we are designing the live the independent lives that they would like. That is a personal independence payment. We are not saying that positive way of thinking of it. Some of the evidence if somebody has a particular condition, their assessment that the Public Bill Committee is hearing has applauded should have a particular outcome; we are doing what he the positive nature of the personal independence payment. has done and considering the impact on people’s lives. I It is heartening to see it as a potential improvement. do not think that DLA does so. The hon. Gentleman mentioned aids and adaptations. Pamela Nash: I thank the Minister for giving way. We must ensure, again, that we do not try to squeeze She is being generous with her time, but I must say that individuals into a one-size-fits-all box. That is doomed her response so far has not filled me with confidence to fail, as he has pointed out. We need to consider how that my constituents who need the benefits to cope with people can use aids and adaptations to improve how their disabilities will still receive them, particularly as they live. We cannot simply ignore or discount aids and she referred immediately to deficit reduction when she adaptations; the taxpayer pays £250 million a year for responded to the earlier comments of my hon. Friend them. The main point is that if we do not consider the Member for Glasgow North West (John Robertson). how people actually live, we will never be able to Can she make it clear whether a ceiling will be put on provide more targeted support. What has happened is the benefits available, and therefore on the number of an extrapolation of what that might mean for the successful claimants of PIP? assessment process. I am not saying that we will include the imputed value of an aid or adaptation as a part of Maria Miller: As the hon. Lady knows, any area of the assessment process. We are asking what day-to-day expenditure must work within a financial budget. We adaptations help improve people’s ability to live an are putting the assessment first and foremost in order to 333WH Disability Living Allowance23 MARCH 2011 Disability Living Allowance 334WH get it right for disabled people and ensure that the of disabled people and the communities in which they funding available reaches people such as the constituent live. That is our starting point for DLA reform, and that of the hon. Member for Glasgow North West, who is how we will ensure that disabled people have enough might have found it difficult to get support in the past choice and control in their lives to live as independently because the DLA was invented some 20 years ago and as possible. I am determined that we will get it right and perhaps does not reflect how we would like to think of continue to provide the right support, targeted at the disabilities today. right people, in a way that is fair for everyone. In conclusion, I hope that the hon. Gentleman is Question put and agreed to. reassured that despite our differences in approach, we have a similar outcome in mind. We want to deliver a 4.59 pm fair and affordable benefit system that serves the interests Sitting adjourned.

55WS Written Ministerial Statements23 MARCH 2011 Written Ministerial Statements 56WS

Although the council tax freeze is only for one year, Written Ministerial financial provision is made to support the freeze across the spending review. This will “lock in” the benefits of Statements this year’s freeze over each year over the spending review. Moving forward, the Localism Bill makes provision Wednesday 23 March 2011 for the abolition of central Government capping powers, replacing them with new, binding council tax referendums from 2012-13 whenever an authority is proposing an TREASURY excessive increase. The Government have also protected families from potential increases in council tax by ruling out a council Debt and Service Management Report 2011-12 tax revaluation in England for the remainder of this Parliament. The Localism Bill also legislates to abolish bin taxes—which would have entailed new charges for The Financial Secretary to the Treasury (Mr Mark household waste collections for many families on top of Hoban): The “Debt and reserves management report council tax. 2011-12” is being published today. Copies have been deposited in the Libraries of both Houses. Guidance on Work Force Matters

COMMUNITIES AND LOCAL GOVERNMENT The Secretary of State for Communities and Local Government (Mr Eric Pickles): The growth review has Council Tax announced that the Government will act to remove barriers to more open and efficient local public services including guidance on work force matters. I wish to The Secretary of State for Communities and Local provide the House with a detailed update on our approach, Government (Mr Eric Pickles): I am pleased to inform including plans to discuss with employers, employee the House that all eligible local, fire and rescue and representatives and others whether any alternative police authorities in England have decided to freeze or arrangements might be useful in the future. reduce their band D council tax in 2011-12 and will I am revoking, with immediate effect, the guidance therefore all be eligible to receive the additional grant on work force matters which formed part of the last offered by the Government for doing so. The average Administration’s best value regime. This is the handling band D rate of council tax will remain at £1,439—a of work force matters in contracting and the code of change of 0%. This is the lowest ever change in the practice on work force matters in local authority service entire history of council tax. It represents a cash-terms contracts (“the two tier code”) (“Annexes C and D plus freeze, and a real-terms cut in council tax. The capping paragraphs 28 to 31 of ODPM Circular 03/2003”) and threshold in recent years was a 5% council tax rise. corresponding guidance applicable to fire and rescue Stopping such a rise this year saves a typical household authorities and the Greater London Authority (“ODPM up to £72 and if an average 2.5% rise had occurred the circulars 07/2003 for the GLA and 09/2004 for the Fire saving would have been £36. and Rescue Service”). Council tax payers in some areas may see a small cash Councils, the voluntary sector and businesses—especially increase in their overall bill due to precept increases set small firms—have called on the Government to remove by town and parish councils; central Government have unnecessary burdens and barriers that act to prevent no remit over such precepts. However, nationally, this is fair and open competition. Removing this guidance will offset by some councils which are making cash-terms help create a level playing field, ensure more opportunities reductions to council tax levels. for innovation, help ensure better value for taxpayers’ The Government have delivered on their promise to money in the provision of public services, and remove work with authorities to produce a council tax freeze in red tape that hinders job creation. England, which is tremendous news for hard-working The withdrawal of the two-tier code will not impact families and pensioners who have experienced a doubling on existing TUPE regulations and provisions in the of council tax since 1997. Employment Act 2008 or other employment legislation. The spending review made £650 million available for There may be instances where contracts will be due for the council tax freeze. Where an authority has not renewal or are currently out to tender and it will be a increased its basic amount of council tax in 2011-12 matter for local authorities to take legal advice on the compared with 2010-11, it will receive a grant equivalent particular contract specifications and circumstances. to a 2.5% increase in its 2010-11 band D figure multiplied The abolition will not be applied retrospectively. Therefore by the latest available tax base figure. existing contracts and the employment terms that flow My Department will write to individual local authorities from them will not be affected by withdrawal of the this week informing them of the amount of freeze grant code. I propose to pay to them during 2011-12. I intend the I will be writing over the coming days to employers, grant to be paid in 10 equal monthly instalments from employee representatives and others to invite their views April 2011 through to January 2012. Following the on whether there might be anything, such as a statement 100% response to the freeze by eligible authorities, no of good employment principles in place of the code, further capping action is required in 2011-12. that would be helpful for the future. 57WS Written Ministerial Statements23 MARCH 2011 Written Ministerial Statements 58WS

LEADER OF THE HOUSE I have tabled a motion, which appears on the Order Paper today, which has the effect of providing extra days for the consideration of Private Members’ Bills in this Session. The extra dates to be provided are Private Members’ Bills (2010-12 Session) 9 September 2011, 21 October 2011, 25 November 2011 and 20 January 2012. Bills will have precedence on those days in accordance with the established order set The Leader of the House of Commons (Sir George out in paragraph (5) of Standing Order No.14. Young): In September, I informed the House that the The Government are also mindful that, due to the Government had decided that the current Session of longer than usual current Session, extra provision will Parliament should run until the spring of 2012. This be necessary for Opposition days and Backbench Business was in order to ensure a smooth transition towards five, days. No changes to Standing Orders are necessary to 12-month Sessions over a Parliament, which would be a accommodate adequate extra provision in these two beneficial consequence of Parliament agreeing the Fixed- instances, and I will announce the provision of extra term Parliaments Bill. time through the weekly business statement as usual. 5P Petitions23 MARCH 2011 Petitions 6P

And the Petitioners remain, etc.—[Presented by Helen Petition Goodman, Official Report, 16 February 2011; Vol. 523, c. 1095 .] Wednesday 23 March 2011 [P000888] Observations from the Secretary of State for Culture, OBSERVATIONS Media and Sport: The Government recognise the strong support in the north-east and elsewhere for preserving Auckland castle CULTURE, MEDIA AND SPORT and its wonderful collection of paintings by Francisco de Zurbarán. The paintings are not just important Proposed Sale of Zurbaran Paintings works in their own right but have become important The Petition of residents of Bishop Auckland, County symbols of religious, ethnic and social tolerance, issues Durham and the North East, which were all highly significant at the time and which remain so today. The castle and paintings are the property Declares that the Petitioners believe that the Church of the Church Commissioners and it is not for the Commissioners should not sell Auckland Castle or the Government to seek to influence decisions concerning Zurbarán Paintings. their future. The Government hope, however, that a The Petitioners therefore request that the House of solution can be found that will satisfy the needs of the Commons urges the Church Commissioners not to Church and ensure that the castle and paintings can proceed with the sale. continue to be enjoyed by the public.

1105W Written Answers23 MARCH 2011 Written Answers 1106W

tax policy in Northern Ireland; and if he will make a Written Answers to statement. [47505] Questions Mr Paterson: I have had extensive discussions with ministerial colleagues in the Treasury on measures to rebalance the Northern Ireland economy. Wednesday 23 March 2011 The Government consultation paper published tomorrow will outline the potential for the devolved Administration to be given powers to reduce the corporation tax rate in Northern Ireland. WALES Royal Irish Regiment and Irish Guards Departmental Ministerial Policy Advisers 15. Mr Donaldson: To ask the Secretary of State for Mr Gregory Campbell: To ask the Secretary of State Northern Ireland whether he has had discussions with for Wales how much her Department has spent on the Secretary of State for Defence on steps to mark the (a) salaries and (b) pension entitlements for special return to Northern Ireland of the Royal Irish Regiment advisers in the financial year 2010-11 to date. [46568] and the Irish Guards from operational deployment in Afghanistan. [47506] Mr David Jones: Information is available on the Cabinet Office website at: Mr Paterson: I would like to take the opportunity to http://www.cabinetoffice.gov.uk/resource-library/special- acknowledge the exceptional efforts and sacrifices of adviser-data-releases the Royal Irish Regiment and Irish Guards in Afghanistan, The estimated pay bill includes pension costs, and details in particular Lance Corporal Stephen McKee from 1st of pension arrangements are set out in the “Model Battalion the Royal Irish Regiment who was killed on contract for Special Advisers”. 9 March 2011. I am aware that the Ministry of Defence are in the early planning stages for several events both in Northern Ireland and in GB and will give any such events my full NORTHERN IRELAND support.

Economic Situation Credit Unions: Northern Ireland

12. Christopher Pincher: To ask the Secretary of State Naomi Long: To ask the Secretary of State for Northern for Northern Ireland what recent discussions he has Ireland what recent discussions he has had with the had with Ministers in the Northern Ireland Executive (a) Secretary of State for Work and Pensions and (b) on economic development in Northern Ireland. [47503] Minister for Enterprise, Trade and Investment in the Northern Ireland Executive on the (i) funding of credit Mr Paterson: I have had extensive discussions with unions in Northern Ireland and (ii) allocation of funding the First and Deputy First Ministers, the Finance Minister through the Growth Fund. [48165] and the Enterprise Minister on proposals to develop and rebalance the Northern Ireland economy. Mr Paterson: As the subject matter of the Credit Unions (Northern Ireland) Order 1985 is a devolved The consultation paper the Government publishes matter I have not held any such discussions to date, tomorrow will be a genuine team effort. I pay tribute to although I would be prepared to raise these matters the work of Northern Ireland Executive Ministers on with the Secretary of State for Work and Pensions, my these crucial proposals. right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith), if asked to do so by the 13. Julian Smith: To ask the Secretary of State for Northern Ireland Minister for Enterprise, Trade and Northern Ireland what recent discussions he has had Investment. with ministerial colleagues on measures to promote economic growth in Northern Ireland. [47504] Social Security is also a devolved matter in Northern Ireland. The Financial Inclusion Fund (FIF) which Mr Paterson: I have had intensive discussions with ends in March 2011 pays for the Department for Work the Exchequer Secretary to the Treasury, my hon. Friend and Pensions Growth Fund. The Northern Ireland the Member for South West Hertfordshire (Mr Gauke), Executive has already received consequential under the on consultation proposals to rebalance the Northern Barnett formula in respect of the FIF. Ireland economy and promote investment. I pay tribute to the excellent work undertaken by my ministerial colleagues in the Treasury on these crucial ENVIRONMENT, FOOD AND RURAL AFFAIRS proposals to boost growth. Animal Welfare: Finance Corporation Tax Mary Creagh: To ask the Secretary of State for 14. Nic Dakin: To ask the Secretary of State for Environment, Food and Rural Affairs what her Northern Ireland what recent discussions he has had Department’s funding allocation for animal health is with the Chancellor of the Exchequer on corporation for each of the next four financial years. [44831] 1107W Written Answers23 MARCH 2011 Written Answers 1108W

Mr Paice: The SR10 programme funding allocation Richard Benyon [holding answer 21 March 2011]: On for animal health and welfare for the next four financial 16 March 2011, Official Report, column 9WS, the Minister years is as follows: for the Cabinet Office and Paymaster General (Mr Maude) issued a written ministerial statement updating Parliament Allocation (£ million) on progress on public bodies reform. That statement also announced that Departments estimate that cumulative 2011-12 213 administrative savings of at least £2.6 billion will flow 2012-13 198 from public bodies over the spending review period. 2013-14 182 2014-15 167 DEFRA anticipates net planned administrative savings from structural reforms of our public bodies over the spending review period of approximately £18.58 million. Biodiversity In addition to this, we anticipate that cumulative planned administrative reductions from all DEFRA’s public Zac Goldsmith: To ask the Secretary of State for bodies will be approximately £250.93 million over the Environment, Food and Rural Affairs what recent estimate spending review period in real terms. she has made of the number of globally-threatened DEFRA published spending review allocations for species present in (a) the UK, (b) England and (c) the its arm’s length bodies on our external website on UK Overseas Territories in each of the last five years. 20 December 2010. [45991] Plantations: Carlisle Richard Benyon: Yearly estimates of globally threatened species present in the UK, England and the UK Overseas John Stevenson: To ask the Secretary of State for Territories (UKOTs) are not undertaken but the best Environment, Food and Rural Affairs what plans she available information is that there are: has for the future of High Stand Plantation in Carlisle constituency. [47885] (a) UK: 194 (2005-10) (b) England: 54 (2010) Mr Paice: High Stand Plantation is owned by the (c) UKOTs: 517 (2008). Secretary of State for Environment, Food and Rural Affairs and placed at the disposal of the Forestry Dairy Farming Commissioners under section (3)1 of the Forestry Act 1967. It is being managed in accordance with an approved forest design plan which sets out the long-term vision Dan Byles: To ask the Secretary of State for Environment, for the wood, including detailed felling and restocking Food and Rural Affairs what assessment she has made plans for at least a 10-year period. of the financial effects on dairy farmers of the implementation of the provisions of European Clean Severn Estuary: Land Water Directive in respect of the storage of slurry. [47632] Mr Liddell-Grainger: To ask the Secretary of State for Environment, Food and Rural Affairs how many Richard Benyon: The financial effect on the dairy permissions have been given by the Environment sector of the need to construct slurry storage under the Agency for the conversion of land on the Severn Nitrates Pollution Prevention Regulations 2008 was Estuary into wetland in each of the last five years; to estimated at that time to be between £15.9 million and whom each such permission was given; on what date; £20.7 million. The nitrates directive (a key measure to and if she will make a statement. [47557] implement the water framework directive) is implemented in England by the nitrates pollution prevention regulations. Richard Benyon: Flood defence consent is not required As the total area of land eventually designated as for the conversion of land into wetland, unless there is a Nitrate Vulnerable Zones comprises 62% of England, structure involved or works are proposed within eight rather than the 70% on which the 2008 estimates were metres of the landward toe of a sea defence. Conversion based, the actual financial impact is likely to have been of land to wetland would be subject to the planning less than suggested above. process administered by the local planning authority. The estimate is for England only, as this is the extent The following table provides details of the two flood of the coverage of the regulations. defence consents for structures that have been issued where land has been converted to wetland habitat through Departmental Public Bodies managed realignment or compensatory works.

Flood defence Date Jon Trickett: To ask the Secretary of State for consent Description granted Granted to Environment, Food and Rural Affairs pursuant to the Congresbury Tidal Realignment of 30 March Environment written ministerial statement of 16 March 2011, Embankment tidal defence 2009 Agency Official Report, columns 9-10WS, on the public bodies and creation of reform programme, what estimate she has made of the marginal habitat savings to her Department net of costs incurred in the Dowlais Farm Fencing in 9 March North assumption of additional departmental responsibilities Wetland Project, conjunction 2006 Somerset to accrue from (a) the abolition of 24 public bodies Clevedon with creating Council new ditches and within her Department’s area of responsibility and (b) ponds the change in function of seven such bodies. [48142] 1109W Written Answers23 MARCH 2011 Written Answers 1110W

ATTORNEY-GENERAL Grant Shapps: In England we are investing nearly £4.5 billion in new affordable housing to help deliver up Departmental Procurement to 150,000 affordable homes. We expect providers of affordable housing and local authorities to work closely Stephen Barclay: To ask the Attorney-General how to identify the level of provision needed in their areas. many procurement projects with a monetary value greater than (a) £10 million, (b) £50 million and (c) The location, number and availability of affordable £100 million (i) the Law Officers’ Departments and (ii) housing will be dependent on agreements between providers the agency for which he is responsible were engaged and the Homes and Communities Agency, in consultation upon in the latest period for which figures are available. with local authorities. [45543] Bowling: Facilities The Solicitor-General: During financial years 2009-10 and 2010-11 only one new procurement project has been John Woodcock: To ask the Secretary of State for undertaken by the Law Officers’ Departments which Communities and Local Government what recent involved costs over £10 million. representations he has received on the safeguarding of In October 2009, the CPS signed a three year extension facilities for crown green and lawn bowling. [48524] of its ongoing contract with Information and Communications Technology (ICT) suppliers Logica Robert Neill: Since May 2010, my Department has and Global Crossing to supply information technology received one representation relating to safeguarding a and telecommunications services until 2015. The cost of bowling green. In the light of a proposal to sell the land this contract extension was £125 million. by its owners, a committee member of a bowling club requested comments on protection of the green through Departmental Rail Travel planning policy and on the Localism Bill’s community right to buy provisions. Mr Godsiff: To ask the Attorney-General how many and what proportion of civil servants in the Law Officers’ Departments are entitled to travel first class Community Development by rail within the UK. [46777] Mike Weatherley: To ask the Secretary of State for The Attorney-General: Civil servants employed by Communities and Local Government (1) whether the the Law Officers Departments have limited entitlement community right to build programme will include (a) to travel by first class rail within the UK. It is expected renovations and (b) continuations of previously halted that all travel should be undertaken by the most efficient building projects; [47895] means to ensure value for money. (2) when he expects the community right to build However, it is accepted that in some exceptional programme to begin operation. [47896] circumstances a first class ticket may cost less than standard class or represent better value for money, or Grant Shapps: The community right to build proposals there may be a genuine business, security or disability are contained in the Localism Bill introduced to Parliament need. In such rare instances, first class travel would only on 13 December 2010. The Bill’s enactment will give be permitted following approval by a senior manager. certain community organisations in rural and urban areas the right to bring forward a community right to Serious Fraud Office build order allowing certain types of small scale development on a specific site to take place providing it Catherine McKinnell: To ask the Attorney-General meets prescribed criteria, has been subject to independent what discussions he has had with the Secretary of State testing and has received majority support in a community for the Home Department on proposals to separate the referendum. Any benefits generated from developments investigation and prosecution functions of the Serious under the community right to build will stay within the Fraud Office; and if he will make a statement. [47340] community and be used for the community’s benefit. It will be for communities to identify suitable land, sources The Solicitor-General: The Attorney-General and I of finance and secure support for their proposals. We regularly have wide-ranging discussions with the Secretary hope to achieve Royal Assent on the Localism Bill as of State for the Home Department and with Home soon as parliamentary time allows. Office Ministers to consider criminal justice matters. These discussions cover, among other things, the coalition Where renovations or the continuation of projects Government’s commitment to tackle white collar crime, require planning permission, it would, in principle, be including those investigated and prosecuted by the Serious possible for community right to build orders to give Fraud Office, as seriously as other crime. permission for such projects, subject to the proposals meeting the requirements set out in the Bill and receiving a positive vote at referendum. COMMUNITIES AND LOCAL GOVERNMENT Disabled Facilities Grants Affordable Housing Mr Raynsford: To ask the Secretary of State for Nicola Blackwood: To ask the Secretary of State for Communities and Local Government what research his Communities and Local Government what steps he is Department has (a) commissioned and (b) evaluated taking to increase the availability of affordable housing on the potential demand for disabled facilities grants. (a) in Oxford and (b) nationally. [47959] [47985] 1111W Written Answers23 MARCH 2011 Written Answers 1112W

Andrew Stunell: The Department for Communities local authority area and (c) North Yorkshire county and Local Government has commissioned the Building council authority area in the latest period for which Research Establishment in 2009 to research and evaluate figures are available. [47899] the potential demand for Disabled Facilities Grants. Details of the research are available on the Department Mr Vaizey: Arts Council England estimates spend in for Communities and Local Government website: 2009-10 at £4.01 per head in Craven, £1.95 per head in http://www.communities.gov.uk/publications/housing/ Harrogate and £6.09 per head in North Yorkshire. dfgallocationmethodology Additionally, a number of organisations funded by First Time Buyers the Arts Council tour their work in the constituency, though their funding is not represented in the figure above. Nicola Blackwood: To ask the Secretary of State for Communities and Local Government what steps his Bowling Department is taking to help first-time home buyers. [47958] John Woodcock: To ask the Secretary of State for Culture, Olympics, Media and Sport whether he has Grant Shapps: The Government are committed to made an estimate of the number of (a) crown green helping those who aspire to own their own home. At bowling and (b) lawn bowling facilities that have Budget we announced £210 million to support a new closed in England in each of the last five years. [48525] FirstBuy: HomeBuy scheme in England. Co-funded with house builders FirstBuy will help over 10,000 Hugh Robertson: Neither the Department nor Sport first-time buyers, who are struggling to purchase a England hold the information requested. home because of large deposit requirements, to buy a newly built home over the next two years. Digital Broadcasting: North Yorkshire I have also recently held a summit bringing together key players in the housing industry calling on them to Julian Smith: To ask the Secretary of State for Culture, work more closely together to help aspiring first-time Olympics, Media and Sport how much his Department buyers. allocated to promoting digital television switchover in I am pleased to see that progress has been made and North Yorkshire in the latest period for which figures those on the front line of building homes and providing are available. [47900] mortgages are stepping up their efforts to help aspiring first-time buyers get a foot on the ladder by developing Mr Vaizey: Digital UK, the independent, not-for-profit new products that meet the challenges faced by first-time company leading the implementation of the digital TV buyers. switchover across the UK, is responsible for co-ordinating the process and informing viewers about switchover—when it is happening in their area and what they need to do in order to be ready. CULTURE, MEDIA AND SPORT Digital UK’s communication budget is funded from a Alcoholic Drinks ring-fenced proportion of the BBC licence fee. The cost of the core information campaign is typically £3.80 per Luciana Berger: To ask the Secretary of State for household. This includes advertising, roadshows, Culture, Olympics, Media and Sport how much his community outreach, a contact centre and website. Department has spent on the contents of Ministerial There are estimated to be around 2.6 million households drinks cabinets since 12 May 2010. [48405] in the Yorkshire TV region. Latest research carried out for Digital UK in the John Penrose: There are no ministerial drinks cabinets Yorkshire TV region shows that awareness of switchover in the Department. was measured at 94% and three quarters of households (74%) are watching digital TV on all their sets. Arts Council England Humanitarian Assistance Julian Smith: To ask the Secretary of State for Culture, Olympics, Media and Sport how much funding Arts Tessa Jowell: To ask the Secretary of State for Culture, Council England allocated per head of population in Olympics, Media and Sport how much his Department the Skipton and Ripon constituency in the latest period budgeted for humanitarian assistance to people in the for which figures are available. [47898] UK affected by major incidents in (a) 2009-10 and (b) 2010-11. [48073] Mr Vaizey: Arts Council England estimates a spend of £2.96 per head in Skipton and Ripon during 2009-10. John Penrose: The Humanitarian Assistance Unit Additionally, a number of organisations funded by budget was £500,000 in each of the years 2009-10 and the Arts Council tour their work in the constituency: 2010-11. their funding is not represented in this total. Tessa Jowell: To ask the Secretary of State for Culture, Julian Smith: To ask the Secretary of State for Culture, Olympics, Media and Sport whether any resources have Olympics, Media and Sport how much funding Arts been allocated to his Department’s Humanitarian Council England allocated per head of population in Assistance Unit to support UK nationals affected by the (a) Craven local authority area, (b) Harrogate the earthquake and tsunami in Japan. [48075] 1113W Written Answers23 MARCH 2011 Written Answers 1114W

John Penrose: The Department has not allocated any replicate this scale of improvement for shorter stays as resources to support UK nationals affected by the well, we will create a further £750 million of spend and earthquake and tsunami in Japan. Any support necessary 11,000 new jobs. is being co-ordinated by the Foreign and Commonwealth I am afraid we have not broken these figures down Office. into the particular categories suggested in this question. Tessa Jowell: To ask the Secretary of State for Culture, Olympics, Media and Sport whether any resources have been allocated to his Department’s Humanitarian BUSINESS, INNOVATION AND SKILLS Assistance Unit to support UK nationals affected by the situation in Libya. [48076] Alcoholic Drinks

John Penrose: The Department has not allocated any Luciana Berger: To ask the Secretary of State for resources to support UK nationals affected by the Business, Innovation and Skills how much his Department situation in Libya. Any support necessary is being has spent on the contents of ministerial drinks cabinets co-ordinated by the Foreign and Commonwealth Office. since 12 May 2010. [48413]

Olympic Games 2012 Mr Davey: There has been no purchases made for this purpose. Stephen Timms: To ask the Secretary of State for Culture, Olympics, Media and Sport which Minister is Business Link to propose the Olympic Truce resolution at the General Assembly of the United Nations. [48082] Chi Onwurah: To ask the Secretary of State for Business, Innovation and Skills what plans he has for Hugh Robertson: The UK will introduce an Olympic future funding of Business Link; and if he will make a Truce resolution in the UN General Assembly session statement. [48318] beginning in September 2011. No decision has yet been made about who will introduce the resolution. Mr Prisk: The Government’s plans for modernising the provision of publicly funded support, information Mr Thomas: To ask the Secretary of State for and advice for business were set out in the ‘Bigger, Culture, Olympics, Media and Sport what estimate he Better Business’ pamphlet published on 5 January 2011. has made of the number of special event orders needed The regional Business Link advisory service will close in each London borough to facilitate the holding of by the end of November this year. The Businesslink events to celebrate the London 2012 Olympics; and if website will continue and be enhanced, supported by a he will make a statement. [48528] new national contact centre for those who cannot access the information they need on the website. Hugh Robertson: Work to compile a calendar of Following the spending review, the nine Regional major events which are planned to take place in London Development Agencies will receive £92 million for 2011/12 in 2012 is well under way. A large number of boroughs, to fund the regional Business Link advisory service’s event organisers, cultural institutions and other core information, diagnostics and brokerage offer. organisations have registered information which will be shared with relevant public agencies to help with resource Future funding of: planning. Following evaluation, detailed discussions with www.businesslink.gov.uk boroughs and event organisers about planning can begin is a matter for HM Revenue and Customs, who outsource from summer 2011. the provision. The new national contact centre is subject to a tendering exercise. Tourism Business: Regulation Dr Wollaston: To ask the Secretary of State for Culture, Olympics, Media and Sport what assessment Nia Griffith: To ask the Secretary of State for Business, he has made of the effect of his tourism strategy on (a) Innovation and Skills what estimate he has made of the seaside towns, (b) rural communities and (c) Dartmoor level of savings to the public purse which will result National Park and other areas of outstanding natural from a reduction in administration costs through exempting beauty. [47528] micro businesses from regulations on (a) maternity rights, (b) right to request flexible leave, (c) removal of John Penrose: Over the next four years we are aiming the default retirement age and (d) flexible parental to attract 4 million extra visitors to Britain adding leave. [48219] £2 billion additional expenditure and create 50,000 jobs through the new £100 million overseas tourism marketing Mr Davey [holding answer 22 March 2011]: On (a) fund. and (d), the Government have no plans to exempt In measurable terms we should increase the proportion micro-businesses from current statutory maternity or of UK residents who holiday in the UK to match those parental leave provisions. who holiday abroad each year. For longer stays (four On (b), the Government have recently announced nights or more) this would mean 29% of travellers that they are going to repeal—for all employers—the holidaying in Britain rather than just 20% today (creating regulations extending the right to request flexible working 4.5 million extra domestic trips each year, £1.3 billion to parents of 17-year-olds, which were due to come into more spend and 26,000 new jobs). And if we can force on 6 April. This extension would have imposed no 1115W Written Answers23 MARCH 2011 Written Answers 1116W burdens on the public purse; but would have imposed a These figures include income from different sources, total administrative cost of £456,000 per annum on including asset sales forecast to occur in the normal employers. course of business. These receipts, along with the resources On (c), the Government are committed to removing provided by the spending review, will fund the spending the default retirement age, including the associated required to complete existing RDA legal commitments administrative procedures. We do not intend to provide in respect of projects already under way. for a default retirement age applicable only to micro Departmental Expenditure businesses. We estimate a net benefit to the public purse from the implementation of this policy of over £120 million per annum. Stephen Barclay: To ask the Secretary of State for Business, Innovation and Skills what expenditure (a) Companies House: Enforcement his Department and (b) each public body sponsored by his Department incurred on engaging external audit Gordon Banks: To ask the Secretary of State for services in each of the last three years; and to which Business, Innovation and Skills what the outcome was service providers such payments were made in each of the investigation into the enforcement by Companies year. [43756] House of the provisions of sections 409 and 410 of the Companies Act 2006 in respect of the submission by Mr Davey: The notional and actual fees for auditing businesses of lists of their subsidiary companies; what the core Department’s accounts, and the consolidated steps he is taking to ensure enforcement of the legislation; accounts of the Department (and the name of the and what assessment he has made of the effect on this provider), are included in the Department’s annual activity of the proposed reduction in staff numbers at report and accounts which are published each year on Companies House. [48929] the BIS website. Fees for the Department’s executive agencies and public bodies sponsored by the Department Mr Davey: Companies House is currently responding would be published in the annual accounts of each to complaints about the failure of certain companies to body. disclose the required details of their overseas subsidiaries. Expenditure on other external audit services is not In accordance with their established practice Companies held centrally and could be collated only at disproportionate House will seek to secure compliance with the legislation cost. rather than embark immediately on retributive action. Prosecution is an option that would normally only be East of England Development Agency undertaken in the light of a persistent and wilful failure to comply with the legislation and would be subject to Mr Stewart Jackson: To ask the Secretary of State the normal considerations under the Crown Prosecutors for Business, Innovation and Skills what options he is Service guidelines. considering for the disposal of the assets and liabilities The proposed reduction in staff numbers at Companies of the East of England Development Agency; and on House will not have any affect on this activity. what date after receipt of its assets and liabilities plan he proposes to issue his conclusions. [46808] Dairy Products Mr Prisk [holding answer 17 March 2011]: I refer my Tim Farron: To ask the Secretary of State for Business, hon. Friend to the answer I gave to my hon. Friend the Innovation and Skills what plans his Department has Member for Gloucester (Richard Graham) on 9 March to support the development of export markets for UK 2011, Official Report, column 1183W.The East of England dairy producers (a) in the Far East and China and (b) Development Agency has submitted a detailed assets elsewhere. [48522] and liabilities plan this is currently being scrutinised by Government. Information will be made available in due Mr Prisk: The full range of UKTI services, including course, once in principle decisions have been made on access to trade fairs and support delivered in the regions appropriate methods of disposal for particular types of and by overseas Posts, is open to all eligible UK based assets. companies seeking to develop export markets, including those in the dairy sector. UKTI commercial staff in Environment Protection: Employment China have, for example, recently assisted the dairy industry to pursue animal health and geographical Tristram Hunt: To ask the Secretary of State for indications issues with the Chinese authorities. Business, Innovation and Skills what steps his Department is taking to support growth in levels of employment in Departmental Assets (a) remanufacturing and (b) other environmental industries. [45203] Chi Onwurah: To ask the Secretary of State for Business, Innovation and Skills whether receipts from Mr Prisk: Remanufacturing is an important feature the sale of assets owned by regional development of the move to a low carbon economy. Any process agencies are reflected in the spending plans of his which reduces costs, waste and carbon emissions, whilst Department for (a) 2012-13 and (b) 2013-14. [47416] meeting demand and serving the economy, is to be welcomed. Job creation must though come from the Mr Prisk [holding answer 17 March 2011]: The spending private sector. The Department for Business, Innovation review settlement for regional development agencies and Skills,(BIS), working with the Department of Energy (RDAs) is net of receipts and anticipates £61.5 million and Climate Change (DECC), is carrying out a review of receipts in 2012/13 and £43.5 million in 2013/14. of energy intensive sectors, such as iron, steel and 1117W Written Answers23 MARCH 2011 Written Answers 1118W aluminium, which will consider how remanufacturing—and on the receipt of donations and public benefit published recycling—will play a role in ensuring the future by the Charity Commission and HEFCE. The Department competitiveness of these sectors in the low carbon does not plan to issue additional guidance. economy. In the revised waste framework directive the waste hierarchy is now a priority order providing a Micro-business Regulation strong driver to encourage greater reuse and recycling. We are also working to create a Green Economy Chi Onwurah: To ask the Secretary of State for Roadmap which is a joint initiative between BIS, DECC Business, Innovation and Skills what meetings (a) he and the Department for Environment, Food and Rural and (b) Ministers in his Department have had with Affairs, to provide clarity to business on the green interested parties on micro-business regulation. [48319] economy, the Government’s policy intentions and the implications for business over the next 10 years. We will Mr Prisk: Ministers have regular meetings with business be publishing details later in the year. representative bodies. The Secretary of State for Business, Innovation and Skills has established an Entrepreneurs’ Environment Protection: Investment Forum which met in January for the first time. A Small Business Economic Forum has also been established, John Stevenson: To ask the Secretary of State for they have met in October 2010 and January. Business, Innovation and Skills what steps his Department I met with the Federation of Small Business, Institute is taking to encourage businesses to invest in environmental of Directors and Confederation of British Industry projects. [47288] most recently on 14 March.

Mr Prisk [holding answer 22 March 2011]: The Northwest Regional Development Agency Department is developing a Green Economy Roadmap with colleagues from the Department of Energy and Alison McGovern: To ask the Secretary of State for Climate Change and the Department for Environment, Business, Innovation and Skills whether he has made an Food and Rural Affairs which will provide greater assessment of the effect on the economy of the North clarity to businesses on the opportunities, requirements West Regional Development Agency’s rural development and implications as we green our economy. programme. [45798] Higher Education: Finance Mr Paice: I have been asked to reply. Dr Julian Lewis: To ask the Secretary of State for The Northwest Regional Development Agency (NWDA) Business, Innovation and Skills what assessment he has currently delivers axes 1 and 3 of the Rural Development made of the reputational effects of the use of funds Programme for England (RDPE) in the north-west from (a) Libya, (b) former Nazi sources and (c) other region, in line with a Regional Implementation Plan. oppressive regimes by UK universities; and if he will The RDPE has recently been subject to a Mid Term Evaluation which examined its progress for England as make a statement. [47581] a whole against a wide range of indicators, including the impact of the programme on the rural economy to the Mr Willetts: Universities are autonomous institutions. extent that this was observable at the mid-term stage. Each will set its own standards for, and assess the The evaluation included a case study on the implementation reputational effect of, the acceptance and use of donations. of the RDPE in the north-west of England (including As charities, all English universities should follow guidance those elements delivered by the NWDA). The Mid on the receipt of donations from the Charity Commission Term Evaluation will be published shortly. and any additional guidance from the Higher Education Funding Council for England in its role as principal Overseas Trade regulator under the Charities Act 2006. The Department does not hold information on the Mr Douglas Alexander: To ask the Secretary of State provenance of donations to universities in England and for Business, Innovation and Skills which foreign-owned has made no central assessment of reputational effects. companies based in (a) Brazil, (b) Russia, (c) India and (d) China have made the largest contributions to Dr Julian Lewis: To ask the Secretary of State for the UK economy in the latest period for which figures Business, Innovation and Skills if he will (a) draw-up are available. [48342] and (b) promulgate a code of practice for higher education establishments in respect of the use of funds from Mr Prisk: UK Trade and Investment (UKTI) is the oppressive regimes for sponsorship of (i) studentships Government department responsible for attracting foreign and (ii) academic posts. [47583] direct investment (FDI) to the UK, and enhancing the competitiveness of companies in the UK through overseas Mr Willetts: Higher education institutions (HEIs) are trade and investment. UKTI does not collect data which autonomous institutions and are charities. The regulator show the respective economic contribution to the UK of charities in England and Wales is the Charity economy of individual foreign-owned companies. UKTI Commission and, if a relevant English HEI, the Higher does record the number of FDI projects entering the Education Funding Council for England (HEFCE), as UK each year, together with the investing companies’ principal regulator under the Charities Act 2006. estimates of associated jobs and (where made available) As a charity, each HEI will set its own standards for capital expenditure for the first three years of each FDI the acceptance of donations and must apply its income project. Companies are not required to provide capital to deliver its charitable purposes for the public benefit. expenditure data, and data gathered are therefore a In doing so, HEIs need to give due notice to guidance partial data set. 1119W Written Answers23 MARCH 2011 Written Answers 1120W

Within the overall total for the UK, the figures for were no UKTI-recorded FDI projects from Russia that the latest period (financial year 2009-10) for Brazil, year. India and China are shown in the following table. There

Number of Capital projects for which investment capital estimates, where investment UKTI-recorded Number of new Number of Total number of supplied (£ estimates Market FDI projects jobs safeguarded Jobs associated jobs million) supplied

Brazil 6 103 0 103 2.75 1 China 74 760 812 1,572 20.23 17 India 92 3,271 2,618 5,889 479.82 7 Totals 172 4,134 3,430 7,564 502.79 25 Source: UKTI

Professional Organisations Mr Djanogly: There was a total of 42 enforcement orders made in respect of contact orders in the county Kelvin Hopkins: To ask the Secretary of State for courts and family proceedings courts of England and Business, Innovation and Skills if he will assess the Wales, in 2009. However, information about to which merits of introducing mandatory membership of party contact orders are issued is not held centrally. independent professional bodies for professionals working in those employment sectors within his remit. [44187] Legal Advice and Assistance Mr Hayes: Professional standards, including occupational licensing, can be a powerful way of raising ambition in Rosie Cooper: To ask the Secretary of State for Justice skills and training provision contributing to greater how many family law matter starts the Legal Services productivity and growth in a sector. They can also be Commission allocated when the initial results of the effective in addressing wider product market failures 2010 family law tender were announced; and how many including consumer protection and health and safety. In such starts each successful bidder (a) returned or (b) “Skills for Sustainable Growth” the Government made reduced following the abandonment of the tender. the commitment to encourage and support the development [48460] of new industry-led professional standards. Employers are best placed to decide on the specifics of any approach Mr Djanogly: As the tender for family services was themselves, such as whether membership of a professional quashed by the administrative court, no matter starts body should be mandatory or otherwise. awarded could be returned or reduced under the new In the further education (FE) sector the Government contract following the order quashing the tender. will continue to support measures to ensure that we have a professionally-qualified teaching workforce. Current Rosie Cooper: To ask the Secretary of State for Justice regulations require all FE teachers working in the publicly how many complaints the Legal Services Commission funded part of the sector to be members of the independent has recorded from (a) members of the judiciary, (b) Institute for Learning established by teachers in FE hon. Members, (c) legal services providers and (d) themselves in 2002. The Government remain fully others about its tender process for the family law contract; committed to the professional status of the FE teaching when each was received; and how each was (i) recorded work force. and (ii) subsequently handled by the Commission. Regional Development Agencies: Finance [48461]

Mr Nicholas Brown: To ask the Secretary of State for Mr Djanogly: The LSC received 149 letters in relation Business, Innovation and Skills what the monetary to the family tender between 12 July 2010 and 22 value is of the residual assets of regional development November 2010. 43 of these were recorded as complaints. agencies that have been transferred to the Homes and Of the 43 recorded as complaints the following Communities Agency. [48833] breakdown can be provided: (a) five from the judiciary; Mr Prisk: No residual RDA assets have yet been (b) 12 from MPs; (c) 18 from providers; (d) eight from transferred to the Homes and Communities Agency. others including three from provider representative bodies. They were all recorded on a central log and responded to by post or e-mail. JUSTICE Legal Services Commission: Complaints Court Orders

Mr Raab: To ask the Secretary of State for Justice Rosie Cooper: To ask the Secretary of State for Justice how many applications for enforcement orders in respect how many complaints the Legal Services Commission of contact orders under section 8 of the Children Act has (a) received and (b) recorded and dealt with within 1989 were granted to parents in 2009. [48502] (i) three, (ii) 10 and (iii) 14 working days of receipt (A) 1121W Written Answers23 MARCH 2011 Written Answers 1122W since the appointment of its current chief executive and Mr Djanogly: Ministry of Justice policies mandate (B) in respect of the family law tender process conducted that: in 2010. [48459] An assessment is made of the risks to employee health from stress and other psychological hazards; Mr Djanogly: The information requested is not held procedures are implemented to manage and mitigate those centrally and could be provided only at a disproportionate risks, and cost. support is provided for staff experiencing stress or psychological harm as a result of their work. Rosie Cooper: To ask the Secretary of State for Justice Managers and staff share responsibility for assessing what guidance the Legal Services Commission follows and managing stress at work. MoJ provides detailed in determining what constitutes a complaint made (a) guidance on how these actions should be carried out to the Commission and (b) about its services; and what and the arrangements which should be followed; this arrangements were made to (i) advise and (ii) train (A) also applies with regard to staff who are exposed to the chairman, (B) the Chief Executive, (C) other personnel potentially traumatising incidents. in the chief executive’s office and (D) the legal director Managers and staff have access to support through of the Commission in its complaints procedures. [48462] occupational health and employee assistance services, which include confidential counselling and other Mr Djanogly: The LSC defines a complaint in its psychological therapeutic interventions as appropriate. customer service standards as: Managers must consider referral to occupational health “Any communication received by the Legal Services Commission services in all cases where staff are absent through that expresses a negative comment regarding the Commission sickness with stress-related problems. and the service we provide.” As part of its commitment to customer service, the LSC has communicated its complaints guidance to all staff. All managers are expected to ensure that their DEFENCE teams are aware of the complaints procedures, and an Afghanistan: Peacekeeping Operations online customer service training course is available for this purpose. Mr Offord: To ask the Secretary of State for Defence The chairman is responsible for ensuring that the what discussions he has had on increasing the area of LSC is delivering high standards of regularity and secure zone in Afghanistan beyond Kabul. [47385] propriety, including ensuring that a robust complaints procedure is in place. Dr Fox: The main effort of Afghan and international The chief executive is responsible for the day-to-day forces remains in southern Afghanistan, and UK forces operations and management of the LSC, including continue to play a key role in the central Helmand area. ensuring that effective procedures for handling complaints Expansion of security within Kabul and surrounding about the LSC are maintained and made widely known provinces has also been an important part of the campaign within the LSC. Both the chief executive, legal director and where significant progress has been made in recent and personnel in the chief executive’s office are fully months as General Petraeus and I discussed on my last conversant with the complaints procedures. visit to Afghanistan.

Prisoners: Mass Media Mr Offord: To ask the Secretary of State for Defence what steps his Department is taking to prepare for any Priti Patel: To ask the Secretary of State for Justice spring offensive by the Taliban in Afghanistan. [47386] pursuant to the answer of 16 March 2011, Official Report, column 463W, on prisoners: mass media, which Dr Fox: The Ministry of Defence has recently completed (a) external and (b) internal stakeholders were a review of deployed forces and judges that force levels consulted on the production of PSI 37/2010. [48467] and posture are robust enough to deal with any spring offensive by the Taliban in UK areas of operation. The Mr Blunt: The external stakeholders consulted on the high tempo and aggressive operations carried out over draft Prison Service Instruction (PSI) 37/2010 Prisoners’ the winter months to disrupt the Taliban will continue. Access to the Media prior to publication were the prisons and probation ombudsman, Her Majesty’s chief Mr Offord: To ask the Secretary of State for Defence inspector of prisons, the Independent Monitoring Boards what estimate his Department has made of the likely Secretariat and Youth Justice Board. force density of UK troops in Afghanistan in 2015. [47387] In addition, a wide range of colleagues in the Ministry of Justice and National Offender Management Service Dr Fox: The Prime Minister has given a clear public were invited to comment. This included those responsible commitment that there will not be British troops in a for the victim liaison scheme. combat role or in Afghanistan in significant numbers in 2015. However, the UK will continue to have an enduring Stress relationship with Afghanistan based on trade, aid and development, and on training Afghan troops and building Chris Ruane: To ask the Secretary of State for Justice that capacity for the future. what arrangements are in place in his Department to The Ministry of Defence is considering options for (a) reduce levels of work-based stress and (b) provide our military contribution post 2015; no decisions have assistance to staff diagnosed with such stress. [48202] yet been taken. 1123W Written Answers23 MARCH 2011 Written Answers 1124W

Mr Offord: To ask the Secretary of State for Defence Review; and what estimate he has made of the cost to what recent assessment he has made of trends in the the public purse of such changes. [47606] performance of the Afghan National Security Forces. [47429] Nick Harvey: I refer the right hon. Member to the answer I gave him and the hon. Member for Plymouth, Dr Fox: ISAF and the Afghan Government are involved Sutton and Devonport (Oliver Colvile) on 16 March in a continual assessment process that looks at the 2011, Official Report, column 361W. performance and capabilities of the Afghan National Security Forces (ANSF). As I explained to the House Departmental Disclosure of Information on 14 February 2011, Official Report, columns 732-35, there have been significant advances in both the size and capabilities of the ANSF. Mr Kevan Jones: To ask the Secretary of State for Defence (1) how many staff of his Department have Both the Afghan national army and Afghan national been questioned as part of the inquiry established to police met their growth objectives for 2010, and are on determine responsibility for the unauthorised disclosure track to meet the targets for 2011, agreed at the Kabul of the letter from the Secretary of State to the Prime conference last year. Minister published in The Daily Telegraph on 28 September 2010; [47913] Angus Robertson: To ask the Secretary of State for (2) when he expects the inquiry to determine responsibility Defence when he expects the new runway at Camp for the unauthorised disclosure of the letter from the Bastion to enter into service; and what types of aircraft Secretary of State to the Prime Minister published in he expects it to be able to accommodate. [48069] The Daily Telegraph on 28 September 2010 to report; Nick Harvey: The new runway at Bastion opened on [47914] 10 February 2011 and routine flying commenced on (3) what progress his Department has made in establishing 1 March 2011. It is suitable for strategic air transport responsibility for the unauthorised disclosure of the aircraft. letter from the Secretary of State to the Prime Minister published in The Daily Telegraph on 28 September 2010; [47915] Armed Forces: Health Services (4) how much the inquiry established to determine responsibility for the unauthorised disclosure of the Mr Jim Cunningham: To ask the Secretary of State letter from the Secretary of State to the Prime Minister for Defence what steps he is taking to improve the published in The Daily Telegraph on 28 September assistance given to soldiers to prepare them for life 2010 has cost to date; [47916] upon return from tours of duty. [45857] (5) whether the inquiry established to determine Mr Robathan: The Ministry of Defence has made, responsibility for the unauthorised disclosure of the and continues to make, significant progress in managing letter from the Secretary of State to the Prime Minister operational stress and the transition back to life at published in The Daily Telegraph on 28 September home through a number of initiatives. Key among these 2010 has reported any interim findings; and if he will are: make a statement. [47917] Trauma risk management is standard practice across Dr Fox [holding answer 21 March 2011]: The Ministry all three services to manage traumatic stress through of Defence investigation is ongoing. I am not prepared peer mentoring throughout the operational deployment. to comment further, nor to speculate when the inquiries Prior to returning to their home base, all personnel may be complete. who have been deployed for more than 30 days will undergo ‘decompression’ in Cyprus to improve the quality Departmental Public Expenditure of homecoming. Each service has specific recovery capabilities designed Mr Kevan Jones: To ask the Secretary of State for to manage injured personnel and bring them back to Defence (1) what discussions he has had with the full fitness for operations or to prepare them civilian Comptroller and Auditor General on the methodology life. of the National Audit Office for calculating the unfunded In addition, there is an ongoing programme of liability in his Department’s budget over the next independent research to generate a deeper understanding 10 years; [47337] of mental health issues. Those returning home after an (2) what discussions he has had with the Comptroller operational deployment will also have access to the and Auditor General on the estimate by (a) the National welfare support services, such as chaplaincy and confidential Audit Office and (b) his Department of the unfunded support lines, which are also available to armed forces liability in his Department’s budget over the next 10 personnel other than those returning from deployment. years. [47338]

Army: Military Bases Dr Fox: In the future, as part of implementing the recommendations of the Gray Report, we plan to provide, Mr Jim Murphy: To ask the Secretary of State for in conjunction with the National Audit Office, an annual Defence what assessment he has made of the changes to statement of the affordability of the equipment programme existing UK bases required in order to accommodate against the Defence budget. Officials continue to discuss troops scheduled to return from Germany under the with the National Audit Office how this might best be recommendations of the Strategic Defence and Security achieved. 1125W Written Answers23 MARCH 2011 Written Answers 1126W

HMS Gannet Nick Harvey: UK Search and Rescue (SAR) helicopter capability is provided from a pool of 38 military and Mr Donohoe: To ask the Secretary of State for Defence seven civilian operated helicopters based at 12 SAR what the (a) payroll and (b) running costs of the HMS bases, each of which is required to field at least one Gannet search and rescue flight were in (i) 2008-09 and helicopter to incidents during their operating hours. (ii) 2009-10; and what the estimate is of such costs in Details of the SAR stations at which dedicated SAR 2010-11. [47892] helicopters are based and first dates of entry into service as are shown in the following table: Nick Harvey: The payroll and running costs incurred by Navy Command in respect of HMS Gannet search Number of aircraft at and rescue flight are provided in the following table: Station each station In-service date RNAS Culdrose 2 Sea King Mk5 - 1980 £ HMS Gannet 2 1— FY 2008-09 FY 2009-10 FY 2010-111 (Prestwick)

Service 2,021,785 1,867,239 2,151,369 Manpower RMB Chivenor 2 Sea King Mk3 - 1978; Civilian 197,011 222,262 234,283 Sea King Mk3a - 1996 Manpower DST Leconfield 2 1— Running Costs 1,925,876 1,741,338 2,194,998 Wattisham 2 1— Receipts -968,909 -853,489 -824,841 Airfield 1 Total 3,175,763 2,977,350 3,755,809 RAF Boulmer 2 — 1 1 Financial year 2010-11 year to date figures have been extrapolated. RAF 2 — Lossiemouth These figures reflect costs attributed directly to HMS RAF Valley 2 1— Gannet’s unit identification number: other costs such as IT and utilities may be incurred by the establishment Sumburgh 2 Sikorsky S-92 - January but are not separately identifiable. Similarly, costs for 2008 Engineering Support to HMS Gannet fall to RNAS Stornaway 2 Sikorsky S-92 - October Culdrose under the Aviation Engineering Multi Activity 2007 Contract and are not separately identifiable. Receipts Lee-on-Solent 2 AgustaWestland AW139 reflect search and rescue income from the Maritime - July 2008 Coastguard Agency and Scottish Ambulance Service. Portland 1 AgustaWestland AW139 - April 2008 Indonesia: Foreign Relations 1 Indicates brace For military SAR helicopters dates of entry into Mr Spellar: To ask the Secretary of State for Defence service are for the particular fleets of aircraft. Military what recent assessment he has made of the state of SAR helicopters not dedicated to UK SAR tasks will defence and security relations between the UK and undertake other military tasks, SAR training or depth Indonesia; and if he will make a statement. [47333] maintenance.

Nick Harvey: I refer the right hon. Member to the Strategic Defence and Security Review answer I gave to the hon. Member for Mid Sussex (Nicholas Soames) on 28 February 2011, Official Report, Mr Jim Murphy: To ask the Secretary of State for columns 80-81W. Defence what plans he has for the new employment model announced in the strategic defence and security Nuclear Weapons review; what assessment he has made of the likely effects of the implementation of the model on (a) former and (b) current service personnel; what timetable Angus Robertson: To ask the Secretary of State for he has set for the introduction of the model; and Defence when he expects the logistics plan for implementing whether the introduction of the model will have any the reduction in nuclear weapons numbers announced consequences for his Department’s budget. [45916] in the Strategic Defence and Security Review to be completed; when it is intended to commence the return Mr Robathan: The new employment model (NEM) of warheads to the Atomic Weapons Establishment for programme aims to examine how we might strike a decommissioning; and when the reduction in stockpile better balance between the requirements of service and size will be complete. [47825] the demands placed on service personnel and their families, adjusting where necessary to promote greater Dr Fox: I will write to the hon. Member. stability in service life while continuing to recognise the impact of mobility. Rescue Services: Helicopters Detailed work is due to commence in April 2011 and report in the summer of 2012. The intent is that policy Mr Donohoe: To ask the Secretary of State for changes will be implemented from April 2014, but it is Defence how many search and rescue helicopters are in too early at this stage to quantify the potential budgetary operation (a) nationally and (b) at each base; on impact. We do not anticipate that any changes will which date each helicopter was first used; and if he will affect service personnel who leave prior to the introduction make a statement. [47890] of the NEM. 1127W Written Answers23 MARCH 2011 Written Answers 1128W

Third Sector Maria Miller: The Department for Work and Pensions regularly reviews its research requirements. Specific research Chris Ruane: To ask the Secretary of State for proposals are considered under a range of criteria, Defence what account he has taken of the Compact including evidence priorities and value for money. between the Government and Civil Society in policy The Green Paper ‘Strengthening families, promoting development. [42602] parental responsibility: the future of child maintenance’ has set out the coalition Government’s vision for child Dr Fox: The compact between the coalition Government maintenance. The research required to support these and civil society organisations was agreed and launched proposed policies will be considered against the wider on 16 December 2010. It was accompanied for the first departmental requirements. time by guidance on accountability and transparency, ensuring that Government Departments as well as civil Currently more than three million children live in society organisations are clear about the level of separated families and around 50% do not receive child commitment and the implications for not following the maintenance. compact. The Cabinet Office considers policy that is relevant to civil society organisations from a compact perspective, ensuring that it is adhered to, and where it Childcare is not possible for whatever reason, that this is explained to the sector in an open and transparent manner. Mr Byrne: To ask the Secretary of State for Work and Pensions how many people he expects to receive payments for childcare from the public purse to cover WORK AND PENSIONS (a) 90 per cent. or more, (b) 80 per cent. or more and (c) 70 per cent. or more of the cost of childcare in each Alcoholic Drinks of the next four years. [46406]

Luciana Berger: To ask the Secretary of State for Work and Pensions how much his Department has Maria Miller: The information available is in the spent on the contents of ministerial drinks cabinets table. It covers the number of households we expect to since 12 May 2010. [48400] benefit from the child care element of tax credits in the current and next three years. Chris Grayling: This Department does not have any The child care element of tax credits in 2010-11 ministerial drinks cabinets so has spent nothing on their covers up to 80% of child care costs of up to £175 a contents. week for one child and £300 a week for two or more Autism children. From April 2011 the proportion is 70%. Some families may have a lower proportion of their Mr Brine: To ask the Secretary of State for Work and costs covered because either their costs exceed the maximum Pensions what plans he has to take into account the limits supported in tax credits, or because they are on needs of people with autism in designing the assessment the taper so have had some of their support tapered procedure for the personal independence payment. away. We cannot estimate the number of families in this [44821] position as we do not know the proportion of costs that the amounts paid out represent for all families. Maria Miller: The assessment is being developed in Some of these families will be able to disregard collaboration with an independent group of specialists child care payments from their earnings in housing in health, social care and disability, including disabled benefit and council tax benefit. Where this is the case people. We know it is essential that it accurately captures they can see over 90% of their costs covered. Administrative the needs of disabled people with autistic spectrum data showing the number of people benefiting from disorders and this is something that the development the additional disregard in those benefits are not group is considering. For example, they believe that the available. new assessment should explicitly take account of the impact of a health condition or impairment, including Households benefiting from the autistic spectrum disorders, on an individual’s ability to child care element of tax credits communicate. This would set it apart from the current DLA assessment. Both I and departmental officials 2010-11 485,000 have met with the National Autistic Society to discuss 2011-12 500,000 our reform proposals and to seek their views on how the 2012-13 510,000 new benefit can best support those with autism. We will continue to work with disabled people and their We are currently unable to offer the requested information organisations as the detail of the assessment criteria for estimates after the introduction of the universal and its operation is developed and tested. credit in 2013. As the Secretary of State for Work and Pensions said at Second Reading of the Welfare Reform Child Support Bill, we will be supporting the costs of child care with an additional element in the universal credit and we will Kate Green: To ask the Secretary of State for Work invest at least the same amount of money as in the and Pensions if he will undertake research to establish present system. More detailed proposals are under the number of children who live in separated families consideration and will be announced during passage of for whom effective arrangements are in place. [39083] the Bill. 1129W Written Answers23 MARCH 2011 Written Answers 1130W

Departmental Ministerial Policy Advisers Maria Miller: We are unable to say how many residents of care homes in the London borough of Barking and Dagenham have applied for the mobility component of Mr Gregory Campbell: To ask the Secretary of State disability living allowance in each of the last five years. for Work and Pensions how much his Department has spent on (a) salaries and (b) pension entitlements for This is because our management information systems special advisers in the financial year 2010-11 to date. do not provide us with details of customers living in [46567] care homes or which council district they live in. Although this level of detail is held on the persons records we estimate that there would be a disproportionate cost to Chris Grayling: The Government publish, on a quarterly the Department in having to extract this information. basis, the names of special advisers by Department, including each special adviser’s pay band, and actual Employment and Support Allowance salary where this is £58,200 or higher, together with details of special advisers’ pay ranges. The latest list, Graeme Morrice: To ask the Secretary of State for which includes an estimate of the total pay bill and Work and Pensions for what period of time people pension costs for 2010-11, was published on the Cabinet eligible for employment and support allowance (ESA) Office website on 10 March 2011: will receive additional transitional payments where http://www.cabinetoffice.gov.uk/resource-library/special- their incapacity benefit payments are more than their adviser-data-releases newly-assessed ESA rate. [48188] Details of pension arrangements are set out in the Model contract for Special Advisers also published on Chris Grayling: People who move from old-style the Cabinet Office website. incapacity benefits to employment and support allowance will receive transitional protection payments if the level of employment and support allowance they receive is Disability Living Allowance less than their incapacity benefits payments. This is to ensure that potentially vulnerable customers do not lose out as a result of the reassessment. Margaret Curran: To ask the Secretary of State for Transitional payments will continue to be made until Work and Pensions what estimate he has made of the April 2020. Transitional payments will cease earlier if likely number of people affected by his proposal to the annual uprating of employment and support allowance change the qualifying period for disability living means that the amount of employment and support allowance from three months to six months. [35509] allowance to which a customer is entitled becomes equal to their previous award of incapacity benefits. If Maria Miller: On 6 December 2010 we launched a this was to happen before 2020, the customer would no consultation on the reform of disability living allowance longer need a transitional allowance. with the key proposal of a new benefit, to be known as If a customer ceases to be entitled to employment personal independence payment, which will be introduced and support allowance, for example if they become well from 2013. The consultation proposed that personal enough to get a job, they will no longer be entitled to a independence payment will have a six month qualifying transitional payment. period and a six month prospective test. The consultation closes on 14 February. Employment Rights Personal independence payment is designed to support individuals with long-term conditions. Other support is Mr Thomas: To ask the Secretary of State for Work available to provide necessary financial support, such as and Pensions how many people worked on the enforcement NHS travel costs, free prescriptions, aids, and adaptations of employment rights and related protections in the provided by the NHS or the local authority and through Health and Safety Executive in each of the last five a range of social security benefits depending on their years; how many people he expects to work on such circumstances during this period, including access to matters in that body in each of the next three years; and employment and support allowance. As for disability if he will make a statement. [47438] living allowance, claims for personal independence payment may be made during the qualifying period meaning that Chris Grayling: The information requested is not dependent upon the nature of the impact of their available in the specified format. HSE currently has disability claimants may not have to wait six months nine authorised working time officers, whose role includes before payment can start. handling complaints received about provisions under the Working Time Regulations 1998 that HSE enforce. As the new assessment for personal independence In addition, HSE inspectors are authorised to enforce payment has not yet been finalised no estimate is available the same provisions. We do not envisage any significant for the numbers who will receive the new benefit and change to the resources devoted to this work over the therefore will be affected by the change to the qualifying next three years. period. Poverty and Social Exclusion Margaret Hodge: To ask the Secretary of State for Work and Pensions how many applications for the Priti Patel: To ask the Secretary of State for Work mobility component of disability living allowance were and Pensions (1) with reference to the conclusions of made by residents of care homes in the London borough the 3037th Employment, Social, Health and Consumer of Barking and Dagenham in each of the last five years Affairs Council meeting on the European Platform for which figures are available. [47241] against Poverty and Social Exclusion, what assessment 1131W Written Answers23 MARCH 2011 Written Answers 1132W he has made of the likely effect on the UK of the Mrs Moon: To ask the Secretary of State for Work implementation of the European framework for social and Pensions how many people Remploy employment and territorial cohesion; [46854] services has assisted to find (a) part-time and (b) (2) whether the Employment Council conclusions on full-time employment lasting more than (i) three the European Platform against Poverty and Social months, (b) six months and (iii) a year in each of the Exclusion require the UK to finalise national targets on last five years. [43119] social inclusion and poverty; what assessment he has made of the effect on the UK of the actions expected Maria Miller: Full-time job starts are counted on of member states; and if he will make a statement. vacancies of 16 hours or more per week. Part-time job [46860] starts are for vacancies offering less than 16 hours per week. Chris Grayling: The Council Conclusions on the The figures shown include the full range of services European Platform against Poverty and Social Exclusion delivered through Remploy Employment Services including carries forward the June 2010 European Council Workstep and Work Choice that replaced Workstep in Conclusions on the Europe 2020 Strategy for Jobs and October 2010. Growth, which ask member states to finalise their national targets taking into account individual starting positions, Please note that numbers have been rounded to the national circumstances and national decision-making nearest 10, therefore the totals may not add up due to procedures. rounding. The Child Poverty Act sets clear targets for the The information requested is provided in the following Government in respect of child poverty. This will be our table: contribution to the EU wide target on poverty and social exclusion in the National Reform Programme Job starts in the year 2004-05 2005-06 2006-07 2007-08 2008-09 which will be submitted to the Commission in April 2011. Full-time job starts in 560 760 650 740 740 work longer than I also refer the hon. Member to the answer I gave to 13 weeks and less than her question number 44416 on 9 March 2011, Official six months Report, column 1080W. Full-time job starts in 790 750 580 810 1,200 work longer than six months and less than 12 months Remploy Full-time job starts in 1,600 1,880 2,880 2,610 2,840 work longer than 12 months Mrs Moon: To ask the Secretary of State for Work Full-time job starts 2,950 3,400 4,110 4,170 4,780 and Pensions how much was spent by Remploy on total in work in excess hotel and conference facilities in each year since 2005. of 13 weeks [41494] Part-time job starts in 20 40 450 100 50 work longer than Maria Miller: To ensure Remploy can continue to 13 weeks and less than operate its Modernisation Plan funding and to reflect six months the fiscal constraints faced by Government since May Part-time job starts in 20 40 40 50 60 2010 the organisation has either not attended or curtailed work longer than six months and less than their presence at nine conference/exhibitions. A balance 12 months will be struck between the need to promote the Part-time job starts in 50 100 220 180 130 organisation’s work and the need for fiscal constraint. work longer than Remploy are in discussions with DWP and Buying 12 months Part-time job starts 90 170 310 330 230 Solutions to explore how they may use Government total in excess of hotel and travel booking services to make further savings 13 weeks on expenditure. Buying Solutions is the professional buying organisation that provides central procurement services as part of the efficiency and reform group of Social Security Benefits the Cabinet Office. The information that is available is provided in the following table. Mr Byrne: To ask the Secretary of State for Work and Pensions with reference to his Department’s impact £ assessment on fraud penalties and sanctions, how many 2005-06 2006-07 2007-08 2008-09 2009-10 cases resulting in (a) a £350 minimum fine and (b) a £50 civil penalty he expects there to be in each year to Meeting and 323,000 483,000 1,012,000 657,000 415,000 2014-15. [46410] conference costs Public transport 2,875,751 3,280,026 3,447,133 3,495,410 3,150,597 costs including Chris Grayling: Estimates of the number of cases hotels and meals resulting in (a) a £350 minimum fine and (b) a £50 civil Of which: hotel 1————1,143,000 and meals penalty are set out in the following table. These take 1 Prior to 2009, Remploy did not record expenditure on hotels separately, into account historical sanction data, increasing the when an automated expenses system was introduced in the company. For the number of fraud investigators, improving use of data years 2005-06 to 2007-08, the table therefore provides overall expenditure and analytics and introducing a penalty for attempted under the travel classification which includes hotels and meals. fraud. The measures will be introduced in 2012. 1133W Written Answers23 MARCH 2011 Written Answers 1134W

Chris Grayling: DWP has suitable and sufficient policies 2012-13 2013-14 2014-15 and arrangements in place to tackle work-related stress. £350 42,000 45,000 47,000 Preventative measures include: minimum fine1 The Department’s Employee Assistance Programme (EAP) which provides staff and managers with a range of support £50 civil 513,000 542,000 571,000 services including workshops and awareness training on, among penalty other things: 1 This figure includes those who will have a fixed £350 penalty where the overpayment is up to £700, as well as those above this where the preventing pressure becoming stress penalty will be 50% of the benefit overpayment, subject to a developing strategies to cope with change maximum of £2,000. building resilience Note: Figures are rounded to the nearest thousand. The DWP ‘live well work well’ well-being programme which provides employees with a wealth of on-site and on-line help Social Security Benefits: Children and advice on identifying, and practical ways to reduce, work related stress. Mr Bain: To ask the Secretary of State for Work and Support measures include: Pensions if he will assess the effect on levels of access Organisationally, the Annual Staff Survey identifies work-related by children to payments under (a) the proposal made stress with managers responsible for creating focus groups and of payment to couple families with children and (b) improvement action planning for their teams to deal with the existing tax credit system. [47092] specific issues identified. Individually, line managers are trained to identify and manage Maria Miller: The universal credit award is intended stress and are required to complete individual stress risk assessments to be paid as a single amount per household, including for their staff where appropriate. couple households. We are allowing members of the The EAP also provides access to a free 24 hour helpline, couple to decide between them whether the money goes including information and counselling, to support individuals into a joint account or if it is received by one or other of with stress related issues. them. It is then for the household to decide who in the The Department’s Occupational Health service also provides family has access to funds and how any money, including advice to managers and employees, from professional occupational health clinicians, to help the employee manage their condition benefit income and wages, is used to budget for household better at work or to return to work from sick leave. This would costs. There may be exceptional cases that require state include advice on practical adjustments or additional measures intervention to ensure that the rest of the family, including that can be taken to support the employee. the children, benefit from the payment: we are considering the best ways of providing support in those cases. Unemployment: Bexley In the current tax credit system, certain elements are paid to the parent who is identified as the main carer for Mr Evennett: To ask the Secretary of State for Work the children but the way in which funds are actually and Pensions what estimate he has made of the number used will similarly depend on household management of people in Bexleyheath and Crayford constituency of finances. who have been out of work for more than 12 months. [36205] Social Security Benefits: Pay Methods Chris Grayling: This is a matter for the Office for Sarah Newton: To ask the Secretary of State for National Statistics (ONS), however I have been asked to Work and Pensions how many people in each postcode reply. area of Truro and Falmouth constituency were paid ONS compiles unemployment statistics for local areas benefits of each type by girocheque in the latest period from the Annual Population Survey following International for which figures are available. [47816] Labour Organisation (ILO) definitions. However, due to sample size estimates of unemployment for the requested Chris Grayling: The information is not available in duration and geography are not available. As an alternative the format requested as data is not held by postcode ONS have provided the number of persons claiming areas and relates to benefit accounts rather than people. jobseeker’s allowance for the Bexleyheath and Crayford As at September 2010, there were 410 pension or constituency. benefit accounts paid by cheque in the Truro and Falmouth There were 250 people resident in Bexleyheath and constituency. This was made up of 180 state pension Crayford constituency in receipt of jobseeker’s allowance and/or pension credit accounts, and 220 other benefit for over 12 months in January 2011. accounts. National and local area estimates for many labour Due to the very small numbers involved, it would be market statistics, including employment, unemployment inappropriate to break down figures any further as this and claimant count are available on the NOMIS website could potentially compromise the privacy of individual at: customers. http://www.nomisweb.co.uk Stress Universal Credit

Chris Ruane: To ask the Secretary of State for Work Mr Bain: To ask the Secretary of State for Work and and Pensions what arrangements are in place in his Pensions if he will estimate the cost in administration Department to (a) reduce levels of work-based stress incurred in dividing payments of universal credit and (b) provide assistance to staff diagnosed with such between both partners in two-couple households in the stress. [48192] first two years of its operation. [46771] 1135W Written Answers23 MARCH 2011 Written Answers 1136W

Chris Grayling: One of the key aims of universal The number of households receiving a winter fuel payment credit will be to significantly reduce the administration North Middlesbrough costs. We are at the moment designing the detailed East South and East processes so it is not yet possible to estimate the Government Cleveland office Tees parliamentary administrative costs associated with a universal credit England region Valley constituency payment. 2002-03 6,970,630 379,950 93,235 13,560 2003-04 7,017,830 381,370 93,675 13,740 Universal Credit: Equality 2004-05 7,196,990 387,830 95,285 14,120 2006-07 7,405,680 396,270 97,370 14,740 David Morris: To ask the Secretary of State for Work 2007-08 7,585,940 405,300 99,750 15,180 and Pensions what assessment he has made of the effect 2008-09 7,713,430 410,170 101,060 15,470 of the introduction of universal credit on equality between 2009-10 7,862,140 417,090 102,490 15,710 men and women. [48176] Notes: 1. Figures are rounded to the nearest five up to 2004-05 and from 2006-07 onwards to the nearest 10. Chris Grayling: We published a universal credit equality 2. Figures for 2009-10 are based on May 2010 parliamentary constituency impact assessment on 8 March 2011, this is available on boundaries. the Department for Work and Pensions website: 3. Household figures for 2005-06 have been withdrawn pending a review of the figures. The revised figures will be placed in the http://www.dwp.gov.uk/docs/eia-universal-credit-wr2011.pdf Commons Library shortly. 4. Household figures are not available prior to 2002-03. 5. Data for England are the sum of the English Government office Welfare State: Reform regions. 6. Data for Tees Valley are the sum of Darlington, Hartlepool, Middlesbrough, Redcar and Cleveland and Stockton authorities. Mr Byrne: To ask the Secretary of State for Work 7. The latest figures for winter fuel payments are published at: http://statistics.dwp.gov.uk/asd/index.php?page=wfp and Pensions (1) with reference to paragraph 31 of his Source: Department’s impact assessment on conditionality DWP Information Directorate 100% data measures in the Welfare Reform Bill what assessment he has made of potential future trends in the number of (a) sanctions and (b) disentitlement decisions; [46381] (2) with reference to his Department’s impact Yorkshire and the Humber assessment on conditionality measures in the Welfare Reform Bill, how many people he estimates will receive a benefit sanction under each level of financial penalty Mr Blunkett: To ask the Secretary of State for Work and Pensions (1) what plans he has to reduce the in each year to 2015-16. [46385] number of staff in the employment service in Sheffield in the next three years; and what information on this his Chris Grayling: The Welfare Reform Bill sets the Department has made available to hon. Members; framework for changes to the application of sanctions [47710] under existing benefits and also introduces a framework for the application of conditionality and sanctions under (2) how many (a) (i) compulsory and (ii) voluntary universal credit. These reforms will elicit behavioural redundancies and (b) early releases his Department responses that are difficult to predict. Consequently, the intends to implement in (A) Sheffield and (B) Yorkshire Department has not forecast the number of benefit and the Humber in the next three years; [47711] sanctions or disentitlements. (3) what information his Department has given to However, the Department does hold data on the staff of his Department in (a) Sheffield and (b) Yorkshire annual number of sanctions and disentitlements received and the Humber in relation to (i) the non-filling of by jobseeker’s allowance (JSA) claimants. In 2009-10 existing vacancies, (ii) compulsory redundancy and (iii) there were: voluntary redundancy, severance or early release; and if he will make a statement. [47712] 159,950 decisions to impose a sanction; 331,230 decisions to disentitle (eg for claimants who fail to actively seek or be available for work); Chris Grayling: The 2010 spending review settlement will result in the Department’s core budget being reduced Totalling 491,180 sanction and disentitlement decisions. by 26% in real terms over the four years to 2014-15, although, the Department will receive substantial extra resources to deliver a range of new measures. Winter Fuel Payments This outcome is likely to result in staffing being reduced in some areas of the Department and increased Tom Blenkinsop: To ask the Secretary of State for in others, and at different rates. More detailed work is Work and Pensions how many winter fuel payments under way to allocate resources to the different parts of were made to households in (a) England, (b) the the Department, develop more detailed plans and assess North East, (c) Teesside and (d) Middlesbrough South the resulting staffing levels. Work on the future staffing and East Cleveland constituency in each of the last 10 position will also take account of estimated staff turnover years. [47746] rates and the potential for internal and external redeployment. It is not therefore possible to provide Steve Webb: The information that is available is in the estimates of future staff numbers or potential redundancies table. in Sheffield or the wider Yorkshire area at this stage. 1137W Written Answers23 MARCH 2011 Written Answers 1138W

There have been departmental wide communications Rhymney, as well as the lines to Penarth and Barry on the spending review settlement and potential impacts Island to the west. There is no current proposal for on overall staff numbers. There have been no additional electrification of the line from Newport to Ebbw Vale. formal communications specific to Sheffield or Yorkshire and the Humber. Departmental Billing

TRANSPORT Stewart Hosie: To ask the Secretary of State for Transport what proportion of invoices from suppliers ATOL Scheme his Department paid within 10 days of receipt in January and February 2011. [45089] Paul Maynard: To ask the Secretary of State for Transport if he will estimate the proportion of those Norman Baker: The 10 day target has been replaced buying flight-based holidays who will be protected under with a five day target, and information is recorded on the revised ATOL scheme. [43147] this basis. The percentage of invoices paid within five days of Mrs Villiers: The Civil Aviation Authority administers receipt for the Department and its seven Agencies for the ATOL scheme and estimate that in 2009-10 some 21 January 2011 is published on the Department’s website million holiday makers were protected by it. at the following address: On 3 February 2011, I announced to the House the http://www.dft.gov.uk/about/procurement/dft/ Government’s in principle decision to reform ATOL to The data for February are expected to be available improve protection for consumers in a changing holiday shortly. market. The reforms would extend the ATOL scheme to Flight Plus holidays sold by travel agents and tour operators. Such trips closely resemble package holidays Departmental Expenditure but are not covered by the existing legal definition and so currently fall outside ATOL. Subject to consultation, the intention is for the reforms Stephen Barclay: To ask the Secretary of State for to be implemented by new secondary legislation in late Transport what expenditure (a) his Department and 2011 or early 2012. It is estimated that, over time, this (b) each public body sponsored by his Department will ensure around an additional 6 million holidays per incurred on engaging external audit services in each of year benefit from full ATOL protection. the last three years; and to which service providers such payments were made in each year. [43752] Brighton Norman Baker: The information requested is in the Simon Kirby: To ask the Secretary of State for Transport following tables: if he will bring forward proposals to relocate (a) staff The auditors of DFT(c) are the National Audit Office and (b) offices of his Department to Brighton; and if (NAO). The notional fees for the NAO’s audit services he will make a statement. [43471] are as follows: DFT(c) Norman Baker: The Department for Transport comprises DfT (Central), the headquarters functions responsible DFT(c) mainly for policy issues, and seven executive agencies Expenditure (£) Of which: responsible for the delivery of various services. 2009-10 855,000 1112,000 Department for Transport Central has no current 2008-09 850,500 299,500 plans to relocate staff or offices to Brighton. The 2007-08 737,000 Department for Transport (including our Executive 1 To review the transitional steps undertaken by the Department to Agencies) will consider opportunities for relocation as move from UK Generally Accepted Accounting Principles (GAAP) they arise, for example, through departmental reorganisation to International Financial Reporting Standards (IFRS). and reviews of estates requirements. 2 To review the transitional steps undertaken by the Department to move from UK GAAP to IFRS. Cardiff-Ebbw Vale Railway Line: Electrification The NAO also performs other statutory audit activity, including value for money and assurance work, at no Nick Smith: To ask the Secretary of State for Transport cost to the Department. pursuant to the statement of 1 March 2011, Official Report, columns 185-87, on Intercity Express and rail DSA electrification, what plans he has for the electrification In each of the last three years, DSA has engaged the of the Cardiff to Ebbw Vale line; and if he will make a NAO to conduct an annual external audit. The costs are statement. [44536] shown as follows: DSA Mrs Villiers [holding answer 7 March 2011]: The Cost (£) Department for Transport has committed to work with the Welsh Assembly Government to develop a business 2009-10 69,000 case for the electrification of the key valley commuter 2008-09 64,000 lines north of Cardiff via Pontypridd and Caerphilly to 2007-08 55,000 Treherbert, Aberdare, Merthyr Tydfil, Coryton and 1139W Written Answers23 MARCH 2011 Written Answers 1140W

DVLA VOSA The following table shows the expenditure the DVLA £ incurred on engaging external audit services from the 2009-10 58,000 NAO for the last three financial years. 2008-09 77,000 DVLA 2007-08 59,000 Cost (£) All payments were made to the NAO. 2007-08 292,000 NDPBs 2008-09 135,000 2009-10 136,000 BTP NAO audit BTP accounts and the charges from them for external audit services and other services in the last GCDA three financial years are as follows: The GCDA auditors are the NAO: BTP GCDA £ £ 2009-10 1145,000 2009-10 49,000 2008-09 2140,000 2008-09 47,000 2007-08 110,000 2007-08 30,000 1 Audit 2 Audit and £10,000 for IFRS Restatement The charge for 2010-11 is expected to be £110,000 HA DOR and BRB (Residuary) HA incurred the following audit costs with the NAO in each of the last three financial years as follows: DOR and BRB (Residuary) Supplier Cost (£) HA £ DOR 2007-08 Nil 10 Notional costs 2008-09 Nil 10 (recorded in 2009-10 PwC 10,000 Actual costs accounts but without (including VAT) physical payment) East Coast 2007-08 Nil 10 2007-08 13,000.00 312,000.00 Main Line 2008-09 14,000.00 333,000.00 Company 2009-10 20,400.00 314,000.00 2008-09 Nil 10 2009-10 PwC 67,500 There are no other external audit costs. MCA BRB 2007-08 PwC 49,000 Taken from the MCA’s accounts for the past three (Residuary) financial years. Ltd. External auditors 2008-09 PwC 126,000 2009-10 PwC 139,000 The statutory audit of the MCA’s financial statements is undertaken by the NAO under the provisions of the 1 Company dormant Government Resources and Accounts Act 2000. The large increase in BRBR’s costs from 2008-09 The cost of audit services for the financial year ending arise as a result of new subsidiaries of BRBR, that need 31 March 2010 was £85,000. No other fee was received in respect to be audited, being incorporated. of non-statutory work. GLF The cost of audit services for the financial year ending The “external audit” of the GLF is undertaken by 31 March 2009 was £63,000 plus £10,000 in respect of the implementation of IFRS. The auditors received no remuneration the NAO. The payment is made as a single payment out for non audit services. of the GLF which covers all three of the GLAs (Northern Lighthouse Board, Trinity House, Commissioners of The cost of audit services for the financial year ending 31 March 2008 was £63,000. The auditors received no remuneration for non Irish Lights). The audit fee for 2009-10 was £135,000, audit services. 2008-09 £126,000 and 2007-08 £131,000. VCA HS2 Ltd. Audit undertaken by the NAO. HS2 Ltd’s external auditors are Thornton Springer LLP. 2009-10: £46,000 The cost in 2009-10 was £10,575 (inc VAT). 2008-09: The notional cost of audit services in 2008-2009 was £38,000 plus an additional notional cost of £7,500 for undertaking PF an additional audit of VCA’s accounts under the new IFRS. 2008-09: £23,000 paid to NAO including £1,500 for reviewing 2007-08: £37,000. No fees, actual or notional, were incurred adjustments required for compliance with IFRS. for non audit work. 2009-10: £23,000 paid to the NAO including £1,500 for reviewing VOSA adjustments required for compliance with IFRS. The VOSA has spent the following amount on external RHC auditing services in each of the last three years: Nil 1141W Written Answers23 MARCH 2011 Written Answers 1142W

RFA Norman Baker: There are many factors which affect RFA the take-up of hybrid and other low carbon vehicles. NAO £ These include: EU regulations on CO2 from cars, vehicle excise duty rates, the company car tax regime, as well as 2007-08 4,100 oil prices as reflected in the price of fuel at the pump. 2008-09 13,200 The recent spending review announced that the 2009-10 12,000 Government have made provision of over £400 million Key: for measures to promote the uptake of ultra-low carbon DFT(c)—Department for Transport (Centre) vehicle technologies. These measures include support for consumer incentives, development of recharging DSA—Driving Standards Agency infrastructure, and a programme of research and DVLA—Driver, Vehicle and Licensing Agency development work. GCDA—Government Car and Despatch Agency HA—Highways Agency Highways Agency: Finance MCA—Maritime and Coastguard Agency VCA—Vehicle Certification Agency Maria Eagle: To ask the Secretary of State for Transport VOSA—Vehicle and Operator Services Agency what estimate has been made of the level of savings arising from better management of Highways Agency BTP—British Transport Police contracts in (a) 2010-11, (b) 2011-12, (c) 2012-13, (d) DOR—Directly Operated Railways 2013-14 and (e) 2014-15. [46641] BRB—British Railways Board (Residuary) Ltd. GLF—General Lighthouse Fund Mike Penning: I refer the hon. Member to my answers HS2—High Speed 2 of 16 March 2011, Official Report, columns 348-9W PF—Passenger Focus and 22 March 2011, Official Report, column 1056W, which explain that savings are implicit in future year RHC—Railway Heritage Committee indicative budgets which are soon to be published in the RFA—Renewable Fuels Agency 2011-12 Highways Agency Business Plan at the end of this month. A key enabler to successful delivery of the Departmental Public Bodies efficiency savings will be the introduction of new contracts as well as continued effectiveness of contract management. Lisa Nandy: To ask the Secretary of State for Transport At this stage, it is difficult to separate the future efficiencies pursuant to the written ministerial statement of 16 March gained through contract management between the two 2011, Official Report, columns 9-10W, on the public tools. bodies reform programme, what estimate he has made The Highways Agency is working on plans, including of the savings to his Department net of costs incurred improvements in contract management, to make the in the assumption of additional departmental necessary reductions in expenditure within the spending responsibilities to accrue from (a) the abolition of six review period ending in 2014-15. public bodies within his Department’s area of responsibility and (b) the change in function of one such body. Local Government Finance [48146] Maria Eagle: To ask the Secretary of State for Transport Norman Baker [holding answer 21 March 2011]: The if he will publish his Department’s impact assessment in Minister for the Cabinet Office and Paymaster General respect of the reduction in local government resource (Mr Maude) issued a written ministerial statement on grants. [46337] 16 March 2011, Official Report, columns 9-10W,updating Parliament on progress on public bodies reform. That Norman Baker: The Department for Transport did statement also announced that Government Departments not prepare an Impact Assessment in respect of the estimate cumulative administrative savings of at least reduction in local government resource grants. Spending £2.6 billion will flow from public bodies reform over the proposals do not generally require an Impact Assessment, spending review period. as they are developed through a business case process. The Department for Transport provided estimated Further information on business case process can be net administrative savings from reform of its public found at: bodies to the Cabinet Office for inclusion in the 16 March http://www.hm-treasury.gov.uk/data_greenbook_business.htm announcement. These figures are subject to ongoing In addition, the Equality Impact Assessment undertaken refinement as the detail of the changes to all bodies by the Department for the local authority finance has not yet been finalised, but anticipated overall net simplification undertaken as part of the spending review administrative savings are around £21 million over the is available at: spending review period (2011-12 to 2014-15). This figure http://www.dft.gov.uk/adobepdf/165220-/equalityia.pdf takes account of the cost of additional departmental responsibilities as a result of the changes. Railways: Construction

Fuels: Prices Christopher Pincher: To ask the Secretary of State for Transport how many people (a) have applied for the Chi Onwurah: To ask the Secretary of State for Exceptional Hardship Fund (EHS) associated with Transport whether he has made an assessment of the High Speed Two and (b) have been approved for the effect of rising oil prices on the take-up of hybrid EHS in (i) the UK and (ii) Tamworth constituency to vehicles. [47846] date. [47829] 1143W Written Answers23 MARCH 2011 Written Answers 1144W

Mr Philip Hammond: The Exceptional Hardship Scheme Ticketless travel as percentage of has, as of 16 March, received 154 applications. Decisions passenger revenue have been taken on 123 of them. 31 applications have been accepted so far and 92 applications have been July to September 1.8 rejected. Of the 31 accepted applications, two were for October to December 1.6 properties in the Tamworth constituency. 2010 Railways: Crime January to March 1.9 April to June 1.4 Lorely Burt: To ask the Secretary of State for Transport July to September 2.2 how many incidents of crime at each rail station in (a) October to December 2.1 the West Midlands and (b) Solihull constituency were Source: reported in each of the last five years. [47994] London Midland

Mrs Villiers: This information is not held by the Railways: Greater London Department for Transport, but by the British Transport Police who can be contacted at: 25 Camden Road Clive Efford: To ask the Secretary of State for Transport what recent discussions he has had with (a) the Mayor London for London and (b) train operators on the overcharging NW1 9LN of passengers using Oyster pay-as-you-go cards; and if or by e-mail at: he will make a statement. [46981] [email protected] Mrs Villiers: There have been no discussions between Railways: Electrification the Department for Transport and the Mayor of London on this matter. The operation of the Oyster pay-as-you-go Geoffrey Clifton-Brown: To ask the Secretary of State system is a matter for the Mayor and Transport for for Transport for how long he expects the Severn London. The hon. Member may wish to write to the Tunnel to be closed during electrification of the Great managing director of London Underground and London Western Main Line; and at what stage during the Rail, Mike Brown, at: electrification process this will take place. [46316] London Underground 55 Broadway Mrs Villiers: Network Rail has confirmed that the Severn Tunnel is capable of accommodating electrification, London and is continuing to develop a detailed solution for NW1 3HG provision of wiring through the tunnel that is both cost effective and keeps passenger disruption to a minimum. Clive Efford: To ask the Secretary of State for Transport That process is ongoing and, until further work is how many passengers using Oyster pay-as-you-go cards completed, it is not possible to confirm the extent or have been overcharged on London rail services in the timing of the tunnel works. last 12 months for which figures are available; and if he will make a statement. [46983] Railways: Fares Mrs Villiers: The Department for Transport does not Lorely Burt: To ask the Secretary of State for Transport hold this information. This is a matter for the Mayor what assessment he has made of the level of fare and Transport for London. The hon. Member may wish evasion on passenger rail services operated by London to write to the managing director of London Underground Midland Trains for each of the last five years. [47992] and London Rail, Mike Brown, at: Mrs Villiers: London Midland has provided information London Underground to officials in the Department for Transport on the level 55 Broadway of ticketless travel as a percentage of passenger revenue. London No information is available as to what proportion of NW1 3HG ticketless travel on London Midland is due to sustained evasion of fares by passengers. London Midland Renewables Fuel Agency commenced operation in November 2007. London Midland has provided the following data: Maria Eagle: To ask the Secretary of State for Transport Ticketless travel as percentage of (1) what (a) costs will be incurred and (b) savings will passenger revenue be made from abolishing the Renewables Fuel Agency in (i) 2010-11, (ii) 2011-12, (iii) 2012-13, (iv) 2013-14 2008 and (v) 2014-15; [46478] April to June 1.7 (2) what residual functions will remain following the July to September 1.4 abolition of the Renewables Fuel Agency; which October to December 1.4 organisation will carry out each such function; what the estimated costs of each such function are; and what 2009 transfer of funds will be made to each organisation to April to June 1.6 carry out each such function; [46479] 1145W Written Answers23 MARCH 2011 Written Answers 1146W

(3) what the budget for the Renewables Fuel Agency Norman Baker [holding answer 21 March 2011]: The (a) was in (i) 2009-10 and (ii) 2010-11 and (b) will be Secretary of State for Transport wrote to leaders of all in (A) 2011-12, (B) 2012-13, (C) 2013-14 and (D) local highway authorities in England on 23 February 2014-15. [46679] 2011 setting out the conditions for exceptional additional funding to repair damage caused by the severe winter Norman Baker: The Renewable Fuels Agency’s (RFA) weather. This requested that authorities responded by budget in 2009-10 was £1.43 million and in 2010-11 it 16 March 2011 confirming their acceptance to these was £1.75 million. conditions. On 14 October 2010, as part of the cross-Government We are now collating the responses received and review of Public Bodies, it was announced that the expect to inform authorities, including central Bedfordshire, Renewable Fuels Agency (RFA) would be abolished of their allocations shortly. As we have explained, we and its functions transferred to Department for Transport intend to distribute the funds formulaically based on (DfT). the Department’s existing highways maintenance capital To manage this process as smoothly as possible, on funding formula which takes into account road length 24 February 2011 the Office of the Renewable Fuels and condition. Agency (Dissolution and Transfer of Functions) Order 2011 was laid. This Order will dissolve the RFA and Roads: Noise transfer its functions to the Secretary of State for Transport on 1 April, to align with the financial year break. From Mr Iain Wright: To ask the Secretary of State for 2011-12, budgeting for the functions previously carried Transport if he will take steps to ensure that resurfacing out by the RFA will be included in Department for of the A19 near Elwick, Teesside is undertaken with Transport business planning. materials that help to reduce the noise of traffic. [47904] The Order transfers all the functions of the RFA and will deliver administrative efficiencies without compromise Mike Penning: The A19 in the vicinity of Elwick to the important regulatory role that the RFA currently forms part of the A168/A19 Design Build Finance provides. It introduces no new business costs. Exact Operate contract and is operated and maintained by future costs and savings are inherently uncertain, however, Autolink Concessionaires (A19) Ltd on behalf of the transitional costs are currently estimated at £100,000 Highways Agency. The contract requires Autolink to and these would likely be incurred in financial years maintain the road to standards that existed at the time 2011-12 and 2012-13. We intend that by 2014-15, the the contract was signed in 1996. These standards did cost of administering the RTFO scheme will be reduced not require the use of low-noise surfacing materials. by around a third in real terms against the current baseline. The northbound carriageway of the A19 is being resurfaced between the A689 and A179 junctions, commencing on 19 June 2011 for a period of approximately Rescue Services: Helicopters three weeks. Autolink Concessionaires do not propose to use low-noise surfacing for these maintenance works. Mr Donohoe: To ask the Secretary of State for Transport what recent discussions he has had on the provision of Severn River Crossing: Tolls search and rescue helicopters. [47889]

Mike Penning: Recent discussions have been held Nia Griffith: To ask the Secretary of State for Transport with officials, who are conducting a series of discussions what recent discussions he has had with the Welsh with search and rescue industry representatives. Assembly Government on arrangements for collection of Severn Crossing tolls after the end of the current Mr Donohoe: To ask the Secretary of State for Transport concession. [48178] what recent discussions he has had on potential long-term procurement options for search and rescue helicopters; Mike Penning: There have not been any recent discussions and if he will make a statement. [47891] held between the Secretary of State for Transport or Ministers, with the Welsh Assembly Government on the Mike Penning: Recent discussions have been held Severn Crossing Tolls. with officials, who are subsequently conducting a series of discussions with search and rescue industry Nia Griffith: To ask the Secretary of State for Transport representatives to establish what short term procurement whether he has any plans to transfer responsibility for options may be available for the future provision of the collection of tolls on the Severn Crossing to the search and rescue helicopters. We have yet to engage Welsh Assembly Government after the end of the current with industry on long term options. We are considering concession. [48179] those options and will make a statement in due course. Mike Penning: No decisions have been made regarding Roads: Bedfordshire the future of the Severn Crossings once the concession ends in 2017. Andrew Selous: To ask the Secretary of State for Transport by what date he expects Central Bedfordshire Nia Griffith: To ask the Secretary of State for Transport Council to have received additional funding to repair whether revenue from tolls on the Severn Crossing will potholes on roads in its area; and how much it will be hypothecated for any purpose after the end of the receive. [48131] current concession. [48180] 1147W Written Answers23 MARCH 2011 Written Answers 1148W

Mike Penning: No decisions have been made regarding Mr Lidington: Programmes, conferences and activities the future of the Severn crossings once the concession for the UK Chairmanship of the Council of Europe’s ends in 2017. Committee of Ministers are currently under discussion. No costings have yet been agreed. We will formally announce our Chairmanship priorities at our handover West Coast Railway Line: Rolling Stock meeting with the outgoing Chairmanship (Ukraine). This will probably take place in early November 2011. Mr Brady: To ask the Secretary of State for Transport pursuant to the answer of 14 March 2011, Official Democratic Republic of Congo: Elections Report, column 106W, on the West Coast Railway Line: rolling stock, what assessment his Department has made Jeremy Corbyn: To ask the Secretary of State for of the costs and benefits of the introduction of double Foreign and Commonwealth Affairs what support his deck passenger trains on the West Coast Main Line Department is providing to the Democratic Republic compared to those of constructing a new high speed rail of Congo in preparation for its presidential and line. [47861] parliamentary elections. [48388]

Mrs Villiers [holding answer 18 March 2011]: In Mr Bellingham: Our ambassador to the Democratic 2007, Network Rail released the Preliminary Evaluation Republic of Congo (DRC) has met Government figures of Double Deck and Extra Long Train Operations including the Prime Minister and Foreign Minister to report that concluded that the costs of introducing press for elections to be free, fair and well administered. double deck passenger trains on the existing West Coast Our ambassador has also recently met the leaders of the Main Line outweighed the benefits. The introduction of main opposition parties and our embassy continues to double deck trains was dismissed at the preliminary sift monitor the human rights situation pertaining to freedom of options to evaluate stage of the High Speed Rail of expression around the elections. Strategic Alternatives study because of the prohibitive Under UN Security Council resolution 1925, the costs identified in the Network Rail report. United Nations Organisation Stabilization Mission in the Democratic Republic of the Congo (MONUSCO) is mandated to provide logistical and technical support for the elections. The UK’s assessed contribution to FOREIGN AND COMMONWEALTH OFFICE MONUSCO is around £62 million per year. The Department for International Development is one of the major donors to the 2007-13 electoral cycle. Burma: Elections This contribution is focused on voter registration, strengthening the electoral commission, as well as funding Valerie Vaz: To ask the Secretary of State for Foreign civil society to provide education. It is aimed at ensuring and Commonwealth Affairs what reports he has received that everyone has the right to vote, and encouraging as on the conduct of the recent elections in Burma. [48385] wide a participation as possible.

Mr Jeremy Browne: Although voting on the day was Iran: Politics and Government calm, the UK Government received widespread reports of severe vote manipulation, particularly through the Mr Douglas Alexander: To ask the Secretary of State use of additional advanced votes after the count had for Foreign and Commonwealth Affairs what reports officially closed and coercion of voters. Moreover, we he has received on the removal of Akbar Hashemi have serious misgivings over the regime’s official results. Rafsanjani from a clerical assembly in Iran; and what The Election Commission initially reported that in some assessment he has made of the effect of that removal constituencies voter turnout exceeded 100% and in Kachin on the political situation in that country. [47765] state where the regime had banned the elections, two pro-government candidates were declared winners. Mr Hague: We assess that Ayatollah Rafsanjani’s Before any votes were cast, 25% of seats in the decision to relinquish the chairmanship of the Assembly legislature were reserved for the military, the regime’s of Experts will not have a significant impact on Iran’s proxy political party received privileged access to state internal and external policies, which remain a serious resources, and Aung San Suu Kyi was excluded from concern for the international community. the process. Under such circumstances, there is no doubt that Iran: Sanctions elections were not free, fair or inclusive. Mr Amess: To ask the Secretary of State for Foreign and Commonwealth Affairs what recent discussions he Council of Ministers has had on the effectiveness of the Iranian sanctions programme imposed by the international community Priti Patel: To ask the Secretary of State for Foreign in meeting its objectives; and if he will make a and Commonwealth Affairs what estimate he has made statement. [47692] of the cost to the public purse of the forthcoming UK Chairmanship of the Council of Europe’s Committee Alistair Burt: We, and our E3+3 partners, are gravely of Ministers; what programmes, conferences and concerned by the Iranian nuclear programme. We continue activities he has planned for the UK Chairmanship; to pursue a diplomatic solution to the issue, through the and if he will make a statement. [48392] dual track policy of pressure and engagement. 1149W Written Answers23 MARCH 2011 Written Answers 1150W

Sanctions are having an impact and have slowed the Libya: Politics and Government programme. But Iran has yet to resolve our concerns on meeting its obligations. So we believe further pressure Mr Douglas Alexander: To ask the Secretary of State will be required. for Foreign and Commonwealth Affairs when the decision was taken to hold the COBR meeting on Japan: Natural Disasters Libya on 24 February 2011. [45323]

Andrew Rosindell: To ask the Secretary of State for Mr Hague: The decision that Cabinet Office briefing Foreign and Commonwealth Affairs what discussions room (COBR) should meet on 24 February 2011 was he has had with his Japanese counterpart in relation to taken in the early hours of 24 February 2011 on the the recent earthquake and tsunami. [47390] grounds that the situation in Libya warranted it. It has met frequently since then. Mr Jeremy Browne: The Secretary of State for Foreign The Foreign and Commonwealth Office crisis centre Affairs spoke on the telephone to the Japanese Foreign has been staffed to cover the growing unrest in Libya Minister on 12 and 13 March to discuss the situation from 19 February 2011. I was in frequent contact with following the earthquake and tsunami to offer UK ministerial colleagues including my right hon. Friends assistance and to express his condolences. the Prime Minister, Secretary of State for Defence and The Secretary of State also held a meeting with the Secretary of State for International Development as the Japanese Foreign Minister at the G8 Foreign Ministers situation in Libya developed. in Paris on 14 March and reiterated the Government’s offer of assistance. Mexico: Smuggling

Libya Jeremy Corbyn: To ask the Secretary of State for Foreign and Commonwealth Affairs what discussions Andrew Rosindell: To ask the Secretary of State for he has had with his US counterpart on (a) sale of Foreign and Commonwealth Affairs how many staff of weapons to drugs gangs in Mexico and (b) importing his Department have been (a) sent to and (b) evacuated of illegal drugs. [48390] from Libya in the last three weeks. [46709] Alistair Burt: There is no record of the Secretary of Alistair Burt: In order to assist the recent evacuation State for Foreign and Commonwealth Affairs discussing of British nationals from Libya, in the period up to either topic with his US counterpart. 28 February we deployed five Rapid Deployment Teams, in total 26 staff, to reinforce the approximately 80 Foreign Middle East: Armed Conflict and Commonwealth Office employees based in our embassy in Tripoli. Since then, a sixth Rapid Deployment Team has been deployed. As a result of the suspension Mr Amess: To ask the Secretary of State for Foreign in operations at our embassy on 26 February 2011, all and Commonwealth Affairs what reports he has received of the British embassy staff not employed locally in on the firing of shells by Hamas into the Eshkol region, Libya have left. A small team of officials recently dispatched of Israel on 19 March 2011; whether he (a) has taken to eastern Libya was withdrawn on 6 March 2011. steps and (b) plans to take steps in the next six months at the United Nations in respect of this issue; and if he Libya: British Nationals Abroad will make a statement. [48865] Alistair Burt: As I said in my statement on 21 March Mr Offord: To ask the Secretary of State for Foreign 2011, following the recent actions by Hamas: and Commonwealth Affairs whether he has made “I condemn the barrage of mortars on southern Israel from provision for UK nationals who have elected to stay in Gaza in recent days. The indiscriminate targeting of Israeli citizens, Libya to receive consular advice should they require it. as they celebrated the Jewish festival of Purim, is unacceptable. [48118] The firing of over 50 mortars in the space of a few hours, as well as a Grad rocket on Ashkelon that caused injury and damage, Alistair Burt: In the light of the deteriorating situation signals a further, worrying escalation in the situation at a time in Libya we have temporarily suspended the operations when international efforts are focused on getting Israel and the of our embassy in Tripoli. The Turkish Government are Palestinians back to the negotiating table. Hamas must halt these now temporarily representing British consular interests strikes immediately, and rein in other militant factions in Gaza. in Libya. The Foreign and Commonwealth Office (FCO) These attacks come against the backdrop of last week’s footage advises against all travel to Libya. We believe that the of Hamas security forces assaulting students and other peaceful demonstrators in Gaza. Over the weekend Hamas also targeted vast majority of British nationals who want to leave local and foreign media organisations. The people of Gaza, like have now left Libya, through commercial means, the people across the region, have an absolute right to freedom of Government charters and military evacuations. We urge expression and peaceful assembly. Hamas should not think that any remaining British nationals in Libya to leave as while the attention of the world is elsewhere we will turn a blind soon as they can safely do so and not to rely on further eye to their actions.” assisted evacuations. We have encouraged British nationals in Libya to register with us to allow us to maintain Mr Amess: To ask the Secretary of State for Foreign contact with them. We have maintained contact with all and Commonwealth Affairs whether he has had recent British nationals we know of who have chosen to stay in discussions with the Arab League on the firing of shells Libya to advise them of exit options and assist them and rockets by Hamas into Israel; and if he will make a should they wish to leave. statement. [48866] 1151W Written Answers23 MARCH 2011 Written Answers 1152W

Alistair Burt: We are in close contact with the Arab what recent discussions he has had with (a) the government League at ministerial and official level. Recent contacts of Israel, (b) the Palestinian Authority, (c) the government have focused on the situation in Libya. However, I have of Egypt, (d) the Arab League, (e) the government of underlined our views in public on the recent mortar Jordan, (f) his EU counterparts and (g) the United attacks on southern Israel. Nations Secretary General on this issue; and if he will I made the following statement on 21 March 2011: make a statement. [47693] “I condemn the barrage of mortars on southern Israel from Gaza in recent days. The indiscriminate targeting of Israeli citizens, Alistair Burt: I refer my hon. Friend to the response as they celebrated the Jewish festival of Purim, is unacceptable. given to him on 7 February 2011, Official Report, The firing of over 50 mortars in the space of a few hours, as well column 23W. as a Grad rocket on Ashkelon that caused injury and damage, signals a further, worrying escalation in the situation at a time South Korea: Bears when international efforts are focused on getting Israel and the Palestinians back to the negotiating table. Hamas must halt these strikes immediately, and rein in other militant factions in Gaza. Nic Dakin: To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make representations These attacks come against the backdrop of last week’s footage of Hamas security forces assaulting students and other peaceful to the South Korean government to seek an end to the demonstrators in Gaza. Over the weekend Hamas also targeted practice of farming bears for bile. [47580] local and foreign media organisations. The people of Gaza, like the people across the region, have an absolute right to freedom of Mr Jeremy Browne: We consider bear bile farming to expression and peaceful assembly. Hamas should not think that be an abhorrent practice. We are committed to promoting while the attention of the world is elsewhere we will turn a blind the conservation of wild animals worldwide, including eye to their actions.” through our membership of international agreements Middle East: Politics and Government such as the Convention on International Trade in Endangered Species. In addition, when appropriate, we Mr Amess: To ask the Secretary of State for Foreign look for opportunities to raise animal welfare issues and Commonwealth Affairs what assessment he has bilaterally. made of recent pro-democracy protests in (a) the Sudan: Human Rights Middle East and (b) North Africa; what discussions he has had at the United Nations on each such case; and if he will make a statement. [47681] Mr Frank Roy: To ask the Secretary of State for Foreign and Commonwealth Affairs what his most Alistair Burt: As the Secretary of State said on 17 March recent assessment is of the human rights situation in 2011, Official Report, columns 494-83, an unprecedented Darfur. [48366] wave of change is now sweeping across the Arab world. Almost every middle eastern country has been affected Mr Bellingham: We remain concerned about serious at the same time by demands for greater political openness ongoing violations of human rights in Darfur and the and democratic freedom. In Egypt and Tunisia, it has increase in violence, which has resulted in an estimated led to new interim governments and the hope of a more 43,000 civilians displaced in the last two months. We democratic future. In Libya, legitimate protest has been have raised our concerns about human rights abuses followed by bloody civil strife at the hands of a government with the Government of Sudan, including the need to willing to countenance any loss of life in order to cling end impunity for crime committed in Darfur and to to power. In each instance of instability, there have been allow full and unhindered access for vital humanitarian implications for thousands of British expatriates who work in Darfur. live and work in these countries. Syria Each nation involved has a distinct culture, political system and level of economic development, so whatever their futures hold, there will be no single model. However, Mr Offord: To ask the Secretary of State for Foreign there is clearly a common hunger for justice, accountability, and Commonwealth Affairs what the outcome was of political rights and economic opportunity, given that his recent visit to Syria; whether he discussed (a) the the overwhelming majority of the demonstrations that progress of and (b) Syrian support for the Middle East we have seen have been peaceful and staged spontaneously peace process with his Syrian counterpart; and if he by ordinary citizens. Our message to all governments of will make a statement. [48087] the region is that without change popular grievances will not go away. The right to peaceful protest must be Alistair Burt: During his recent visit to Syria the respected and responded to with dialogue. Secretary of State for Foreign and Commonwealth Affairs covered a wide range of issues, including the We have consistently supported the right to peaceful need for progress on political reform, human rights and protest throughout all demonstrations in the middle trade. He also discussed the middle east peace process east and north Africa. There is clearly a common desire with President Assad and Foreign Minister Muallem. for justice, accountability, political rights and economic The Secretary of State highlighted our commitment to opportunity. We will continue to raise our concerns comprehensive peace, our undertaking to do all that we with international partners and institutions. can to that end and our view that all those in the region Palestinians: Politics and Government have a role to play. The United Kingdom will continue to press for progress Mr Amess: To ask the Secretary of State for Foreign on the middle east peace process. The situation across and Commonwealth Affairs what recent reports he has the middle east demands that, and I recently discussed received on the presence of al-Qaeda in the Gaza Strip; progress with President Abbas. We want to see a resumption 1153W Written Answers23 MARCH 2011 Written Answers 1154W of negotiations based on clear parameters supported by experience, drawn from non-governmental organisations, the international community: 1967 borders with equivalent the legal and academic communities and international land swaps, appropriate security arrangements, Jerusalem bodies. as the capital of both states and a just solution for refugees. Chris Ruane: To ask the Secretary of State for Foreign and Commonwealth Affairs how much his Department Syria: Nuclear Power provided to each charity it funds in each of the last five years; and how much he has allocated for funding to Mr Amess: To ask the Secretary of State for Foreign each such charity in each of the next five years. [48274] and Commonwealth Affairs what recent assessment he has made of Syria’s nuclear programme; what recent Alistair Burt: The Foreign and Commonwealth Office discussions he has had with (a) the government of (FCO) does not allocate any central funding to specific Israel, (b) the Palestinian Authority, (c) the government charities, other than the British Council, through an of Egypt, (d) the Arab League, (e) the government of annual grant in aid. The details of this funding are Jordan, (f) his EU counterparts and (g) the United published in our annual accounts and also annual Nations Secretary General on this issue; and if he will parliamentary estimates. The British Council is an executive make a statement. [47699] non-departmental public body, a public corporation (in accounting terms) and also a charity. Alistair Burt: The UK strongly supports the International We do use charities as project implementers around Atomic Energy Agency’s (IAEA) investigations on Syria the world to help deliver UK foreign policy objectives, and welcomes the recent report by the Director General where they have the necessary skills or experience. on Syria’s nuclear activities. It is important that Syria co-operates with this international body and ensures Budgets in the FCO are devolved to over 260 posts that the IAEA can complete its investigations. and details of such payments to charities are not held centrally. As a result, this information could be obtained We urge Syria to comply with the IAEA’s requests to only at disproportionate cost. be given further access to Syria’s nuclear sites, and to provide documentation on these sites. We believe it is in The FCO does provide office space and services, but Syria’s interests to provide full transparency in order to no financial support, to the Pimpernel Trust in the UK. allow the agency to investigate effectively. It is a registered charity which helps retired members of the diplomatic service. We discuss the issue of Syria’s nuclear programme regularly within the EU, but have not recently raised bilaterally with the countries listed. Turks and Caicos Islands: Nature Conservation Third Sector Andrew Rosindell: To ask the Secretary of State for Chris Ruane: To ask the Secretary of State for Foreign Foreign and Commonwealth Affairs how much funding and Commonwealth Affairs what account he has taken his Department allocated to the Turks and Caicos Natural of the Compact between the Government and Civil Trust in each of the last five years. [48036] Society in policy development. [42597] Mr Bellingham: The Foreign and Commonwealth Alistair Burt: We take our relationships with civil Office has allocated the sum of £20,000 to the Turks society organisations seriously and engage with them and Caicos Islands National Trust in the last five years. throughout the world on foreign policy issues. Working The project was approved in 2006 to support restoration with civil society is central to the way we deliver policy work following hurricane damage. and is fundamental to the work of the Foreign and Commonwealth Office. Some examples of our engagement with civil society Venezuela: Trade Unions organisations, in line with the compact, include working with the non-governmental organisation (NGO) Control Mr Douglas Alexander: To ask the Secretary of State Arms Coalition (this includes Oxfam, Amnesty for Foreign and Commonwealth Affairs what recent International and Saferworld) on trying to secure the reports he has received on the situation of trade Arms Trade treaty; holding round table events with unionists in Venezuela. [47558] NGOs to listen to their concerns ahead of visits or events, including recent events on China, Burma and Mr Hague: Our embassy in Venezuela, together with Sudan; and we are undertaking a programme of outreach the EU delegation in Caracas, continue to monitor events around the UK to further develop our links with trade union issues. Trade union issues are also the civil society organisations and inform them of foreign subject of reports by Venezuelan non-governmental policy aims. organisations, international human rights organisations The Secretary of State for Foreign and Commonwealth and international organisations such as the InterAmerican Affairs, my right hon. Friend the Member for Richmond Commission of Human Rights. Although some (Yorks) (Mr Hague) hosts the Advisory Group on organisations have welcomed recent increases in the Human Rights, which he established to ensure that he minimum wage and the high level of job security in receives the best possible information about human Venezuela, some recent reports have expressed concern rights challenges and benefits from outside advice on about threats against trade union leaders, restrictions the conduct of our policy. The group’s members are on freedom of association and collective bargaining eminent individuals with a broad range of human rights rights. 1155W Written Answers23 MARCH 2011 Written Answers 1156W

INTERNATIONAL DEVELOPMENT publish full and detailed information on our projects and programmes on our website—in a standardised, Burma: Overseas Aid accessible format so that it can be freely used by third parties. Valerie Vaz: To ask the Secretary of State for International Development whether his Department Turks and Caicos Islands: Nature Conservation had discussions with Aung San Suu Kyi on its policy on aid to Burma. [48351] Andrew Rosindell: To ask the Secretary of State for International Development how much funding his Mr O’Brien: Officials from the Department for Department has allocated to the Turks and Caicos International Development (DFID) and Her Majesty’s Natural Trust in each of the last five years. [48035] ambassador to Burma are in regular contact with Aung San Suu Kyi and her party, the National League for Mr O’Brien: The Department for International Democracy. Recently DFID officials have informed Development (DFID) allocated a total of £212,509 Aung San Suu Kyi about the UK’s plans on aid to between June 2004 and March 2008 from the Overseas Burma and sought her views. Territories Environment Programme (OTEP) for projects implemented by the Turks and Caicos National Trust. Valerie Vaz: To ask the Secretary of State for This funding was channelled through the UK Overseas International Development whether his Department Territories Conservation Forum. provides funding to the Women’s League of Burma. [48386] World Bank: Energy Mr O’Brien: The Department for International Development (DFID) is providing funding to one member Mark Lazarowicz: To ask the Secretary of State for of the Women’s League of Burma, the Shan Women’s International Development pursuant to the answer of Action Network (SWAN). In 2010, DFID provided 9 March 2011, Official Report, column 1094W, on £76,413 to SWAN to improve health, education and development countries: energy, if he will place in the livelihoods, and to empower women and promote their Library a copy of his Department’s submissions to the rights, in communities displaced by conflict along the World Bank energy strategy review. [47967] Thailand-Burma border. DFID does not provide funding to the Women’s League of Burma itself. Mr Andrew Mitchell: I have arranged for the Department for International Development’s (DFID’s) input to the Charities World Bank’s Energy Strategy Review to be placed in the Library of the House. Chris Ruane: To ask the Secretary of State for International Development how much his Department provided to each charity it funds in each of the last five years; and how much he has allocated for funding to CABINET OFFICE each such charity in each of the next five years. [48277]

Mr O’Brien: The Department for International Average Earnings Development (DFID) supports non-government organisations (NGOs) through a range of centrally managed funds and through DFID’s country programmes. Chi Onwurah: To ask the Minister for the Cabinet Details of funds provided to UK-based NGOs in 2009-10 Office if he will estimate the average wage of employees through these different channels can be found in table of businesses with more than 10 employees of each (a) 19 of Statistics on International Development 2010, gender and (b) age group for those in (i) full-time and which is available in the Library of the House and on (ii) part-time employment. [48322] the DFID website. Details of funding to NGOs based in other countries and the specific purpose and conditions Mr Hurd: The information requested falls within the attached to all funding to NGOs cannot be provided responsibility of the UK Statistics Authority. I have without incurring disproportionate costs. However, further asked the authority to reply. details of all DFID projects, including those delivered As Director General for the Office for National Statistics, I by NGOs, can be found on the project database on our have been asked to reply to your recent Parliamentary Question asking us to estimate the average wage of employees of businesses website; with more than 10 employees of each (a) gender and (b) age http://www.dfid.gov.uk/About-DFID/Finance-and- group for those in (i) full-time and (ii) part-time employment. performance/Aid-Statistics/ (48322) Data for 2010-11 will be available in October 2011. Average levels of earnings are estimated from the Annual Survey of Hours and Earnings (ASHE), and are provided for all Final decisions are still being taken for funding for employees on adult rates of pay whose pay for the survey period 2011-12 and beyond. DFID. has recently introduced the was not affected by absence. The ASHE, carried out in April each Aid Transparency Guarantee, which commits the year, is the most comprehensive source of earnings information in Government to making our aid fully transparent to the United Kingdom. citizens in both the UK and overseas, increasing accessibility I attach a table showing the median gross weekly earnings for and feedback, and pushing international partners to full-time and part-time employees of businesses with more than follow this UK lead. Under this guarantee we will 10 employees of each (a) gender and (b) age group for April 2010. 1157W Written Answers23 MARCH 2011 Written Answers 1158W

UK median gross weekly earnings for businesses with more than Mr Hurd: There was an early tranche of 18 Transition 10 employees by age bands1: April 2010 Fund awards made on 15 February and a further tranche £ of 183 awards made on 22 March. These awards will be Full-time Part-time followed by many more in April and May. We do not Male Female Male Female publish details of unsuccessful applicants. 16-172 *188.2 *180.0 *56.5 50.4 18-21 287.5 271.5 100.0 90.1 Chris Ruane: To ask the Minister for the Cabinet 22-29 424.9 404.7 145.0 147.7 Office how much has been allocated from the Transitional 30-39 581.1 514.4 187.9 186.9 Fund (a) to charities operating in each region and (b) 40-49 626.4 478.5 189.0 183.9 to each type of charity. [48474] 50-59 592.7 448.1 198.9 180.7 60+ 489.8 392.5 163.2 145.0 1 Employees on adult rates whose pay for the survey pay-period was Mr Hurd: To date there have been 201 awards from not affected by absence. the Transition Fund. The amount per region and the 2 Figures for 16 to 17-year-olds include employees not on adult rates type of services that these organisations deliver are set of pay. out in the tables. These awards are the first of many; Guide to quality: further awards will be made in April and May. The Coefficient of Variation (CV) indicates the quality of a figure, the smaller the CV value the higher the quality. The true value is likely to lie within +/- twice the CV—for example, for an average of 200 with a Total amount CV of 5%, we would expect the population average to be within the Region Number of awards awarded (£) range 180 to 220. Key: East of England 10 938,190 CV <= 5% East Midlands 20 1,191,643 * CV >5% and <=10% London 48 4,952,471 Source: North East 17 1,241,807 Annual Survey of Hours and Earnings (ASHE), Office for National Statistics North West 21 1,589,516 South East 13 1,027,173 Census South West 31 2,535,546 West Midlands 24 1,655,836 Mike Weatherley: To ask the Minister for the Cabinet Yo rk s a n d 17 1,396,480 Office what plans he has for the presentation of data Humberside resulting from those who have chosen to write in a Total 201 16,528,662 religion on their 2011 Census form. [47622] Service area Instances1 Mr Hurd: The information requested falls within the responsibility of the UK Statistics Authority. I have Health 117 asked the authority to reply. Education 115 Letter from Stephen Penneck, dated March 2011: Children 133 As Director General for the Office for National Statistics Employment 64 (ONS), I have been asked to respond to your recent question Homelessness 44 asking what the plans are for the presentation of data resulting Offenders 34 from those who have chosen to write in a religion on their 2011 Debt and legal advice 39 Census form. [47622] Total 546 The ONS is currently consulting with users on the main set of 1 Many applicants delivered a range of services, so these figures do statistical outputs designed for the 2011 Census (including religion) not equal to the total number of awards. to ensure it reflects user needs and meets expectations. The current proposal lists twenty-eight tables relating to religion with cross-tabulations against other variables such as age, sex, health and occupation, and the religion categories presented in these tables include write-in responses. The tables will be available at Charity Commission: Manpower different levels of geography down to Census outputs areas (approximately 175,000 areas in England and Wales consisting of an average of 125 residents each). Chris Ruane: To ask the Minister for the Cabinet The 2011 Census aims to take action to improve outputs Office how many people the Charity Commission employed (compared to 2001) relating to minority groups who are often in each of the last five years; and how many people he captured in written responses including religion. The current expects it to employ in each of the next five years. consultation refers directly to this and provides users with the opportunity to advise ONS of their requirements for such statistics. [48253] Details of the consultation and the current proposed list of table layouts can be found at: Mr Hurd: The information requested falls within the http://www.ons.gov.uk/census/2011-census/consultations/ responsibility of the Charity Commission for England open-consultations/2011-output-consultation---main- and Wales. I have asked the Commission to reply. statistical-outputs---second-round/index.html Letter from Sam Younger, dated 21 March 2011: Charities: Finance As the Chief Executive of the Charity Commission, I have been asked to respond to your written Parliamentary Question Chris Ruane: To ask the Minister for the Cabinet (48253), how many people the Charity Commission employed in Office which charities applied for but did not receive each of the last five years; and how many people he expects it to funding from the Transitional Fund. [48473] employ in each of the next five years [48253]. 1159W Written Answers23 MARCH 2011 Written Answers 1160W

The average Full-Time Equivalent (FTE) staff in post for each Long-term international migration estimates and projection of the years requested is as follows: assumptions: All migrants, United Kingdom Thousand FTE Ending June each year: Inflow Outflow Balance 2005-06 517 2006-07 490 2006 565 388 +177 2007-08 471 2007 595 387 +208 2008-09 464 2008 571 375 +196 2009-10 466 2009 563 397 +166 2010-11 430 20101 572 346 +226 2011-12 387 20112 671 470 +201 2012-13 320 20122 671 475 +196 2013-14 277 20132 671 480 +191 2014-15 272 20142 671 485 +186 20152 670 490 +180 The projections relate to the financial years covered by the next 2 Spending Review period. FTE in 2015/16 cannot be projected as 2016 670 490 +180 we do not know what our funding will be in that year. 1 Year includes provisional estimates for 2010. 2 2008-based National Population Projections migration assumptions. I hope this information is helpful. The projections assume constant levels of annual net migration beyond 2014-15. Notes: Migration 1. From year ending mid-2011, National Population Projection assumptions have been provided. Due to the different methodology used these are not directly comparable with published migration Andrew Rosindell: To ask the Minister for the Cabinet estimates. 2. The assumed net migration is used in the production of the Office how many people migrated (a) to and (b) from projections. The assumptions for in-migration and out-migration are the UK in each of the last five years; and how many are by-products of this process and do not feed directly into producing expected to migrate (i) to and (ii) from the UK in each projections. Care should be taken when interpreting these figures. of the next five years. [47447] Third Sector Mr Hurd: The information requested falls within the responsibility of the UK Statistics Authority. I have asked the authority to reply. Chris Ruane: To ask the Minister for the Cabinet Letter from Stephen Penneck, dated March 2011: Office how much the Department gave to the youth As Director General for the Office for National Statistics, I volunteering charity v in each of the last five years. have been asked to respond to your recent parliamentary question [48240] asking how many people migrated (a) to and (b) from the UK in each of the last five years; and how many are expected to migrate (i) to and (ii) from the UK in each of the next five years (47447). Mr Hurd: Funding levels for v, the national young volunteers service, can be found on the Cabinet Office The attached table provides both the latest published estimates of long term international migration and projections of future web pages at the following url: migration. http://www.cabinetoffice.gov.uk/resource-library/cabinet- Long Term International Migration (LTIM) estimates are office-annual-reports-and-accounts provided for the years ending mid-2006 up to and including provisional estimates for the year ending mid-2010. These are the latest available estimates and are derived from several data sources. Chris Ruane: To ask the Minister for the Cabinet The International Passenger Survey (IPS) migrant data provides Office what recent representations he has received from the foundation of the LTIM estimates with adjustments for (a) Volunteering England and (b) Citizens Advice on asylum seekers, people whose intentions change with regard to the effects on the voluntary sector of recent reductions their length of stay, and for international migration to and from in public expenditure. [48314] Northern Ireland. Projections of future migration are provided from the year ending mid-2011 to the year ending mid-2016. The most recent Mr Hurd: I meet regularly with a range of voluntary population projections of the UK are based on the mid-year sector organisations. On 16 November 2010 I attended population estimates for 2008 and a set of demographic assumptions the England Volunteering Development Council organised about future fertility, mortality and net migration based on by Volunteering England and heard first hand about analysis of trends and expert advice. The assumptions for in-migration the effects of reductions in public expenditure. and out-migration are by-products of this process and do not feed directly into producing projections. On 24 February 2011, the Office for Civil Society The national population projections are not forecasts and do hosted a meeting of a number of advice providers not attempt to predict the impact that future government policies, including Citizens Advice. The information from this changing economic circumstances or other factors (whether in meeting was shared directly with me. the UK or overseas) might have on demographic behaviour. However, the projections included in the table will reflect the impact of any government policy up to 2008. Chris Ruane: To ask the Minister for the Cabinet Long-term international migration data produced by the ONS Office what assessment he has made of the position of applies the UN definition of someone who moves from their England in international comparator tables on levels of country of previous residence for a period of at least a year, (a) volunteering and (b) State support for the voluntary irrespective of citizenship. sector. [48486] 1161W Written Answers23 MARCH 2011 Written Answers 1162W

Mr Hurd: The Giving Green Paper, published in Table 1: Number of workless households1 in Bexleyheath and Crayford December 2010, cited analysis carried out by the Charities constituency and London borough of Bexley, January to December Aid Foundation (CAF), which suggested that the UK 2009 ranks in 29th place worldwide in terms of giving time. Thousand Lower Upper The National Council for Voluntary Organisations Estimate bound2 bound2 (NCVO) estimates that statutory support to general charities in the UK amounted to £12.8 billion in 2007-08. Bexleyheath and 759 Crayford The Cabinet Office has not made any assessment of constituency how this compares internationally. London borough of 15 12 18 Bexley Chris Ruane: To ask the Minister for the Cabinet 1 Households containing at least one person aged 16 to 64, where all Office what recent assessment his Department has individuals aged 16 or over are not in employment. made of the level of social enterprise activity in each 2 95% confidence interval which means that from all samples possible there would be 95% certainty that the true estimate would region. [48487] lie within the lower and upper bounds. Source: Mr Hurd: The Annual Small Business Survey conducted APS household dataset by the Department for Business, Innovation and Skills, estimates that there are at least 60,000 social enterprises Voluntary Work: Young People in the UK. The survey does not provide a regional breakdown of the level of social enterprise activity. Tony Baldry: To ask the Minister for the Cabinet The Cabinet Office conducts the National Survey of Office when he expects to establish a national citizen Charities and Social Enterprises on a biennial basis to service for all ages. [48327] gather information on the activities and views of sector organisations, including social enterprises. Results from Mr Hurd: The Government have no plans at present the 2010 wave of the National Survey, including regional to widen the age range for participation in National data, are expected to be published in April 2011. The Citizen Service beyond young people aged 16. results from the 2008 survey are available at: Volunteering England: Finance www.nscsesurvey.com

Transitional Fund Chris Ruane: To ask the Minister for the Cabinet Office how much funding was allocated to Volunteering England in each of the last five years; and how much Chris Ruane: To ask the Minister for the Cabinet such funding he plans to allocate in each of the next five Office on what date the Transitional Fund was (a) years. [48344] opened and (b) closed. [48254] Mr Hurd: Cabinet Office funding to Volunteering Mr Hurd: The Transition Fund was opened to applications England for 2005-06 to 2009-10 is shown in the table. on 30 November 2010 and closed on 21 January 2011. £ 2005-06 2006-07 2007-08 2008-09 2009-10 Unemployment: Bexley Strategic 1,203,200 1,500,000 1,537,500 1,575,900 1,615,300 funding Mr Evennett: To ask the Minister for the Cabinet Project grant 839,938 0 0 0 0 Office what recent estimate he has made of the number Management 173,410 177,745 182,189 17,375 0 of workless households in (a) Bexleyheath and Crayford of the Queen’s constituency and (b) the London borough of Bexley. Award for [48106] Voluntary Service (ex VAT ) Mr Hurd: The information requested falls within the Total 2,216,548 1,677,745 1,719,689 1,593,275 1,615,300 responsibility of the UK Statistics Authority. I have asked the authority to reply. Through the Office for Civil Society strategic partner Letter from Stephen Penneck, dated March 2011: transition programme Volunteering England will receive £500,000 in 2011-12, £375,000 in 2012-13 and £250, 000 As Director General for the Office for National Statistics, I in 2013-14. have been asked to reply to your Parliamentary Question asking what recent estimate has been made of the number of workless households in a) Bexleyheath and Crayford constituency and b) the London borough of Bexley (48106). The figures requested come from the Annual Population Survey HOME DEPARTMENT (APS) household datasets. The latest data currently available is for 2009. The attached table shows estimates for Bexleyheath and Crime: Devon Crayford constituency and the London borough of Bexley. As with any sample survey, estimates from the APS are subject to a margin of uncertainty as different samples give different Dr Wollaston: To ask the Secretary of State for the results. These estimates are such that there is 95 per cent certainty Home Department what assessment she has made of that from all samples possible they will lie within the lower and levels of (a) violent crime and (b) domestic violence in upper bounds. South Devon in each of the last three years. [47530] 1163W Written Answers23 MARCH 2011 Written Answers 1164W

James Brokenshire: The Home Office collects data on approach to managing family returns has been developed violence against the person offences recorded by police which places far greater emphasis on engagement with forces in England and Wales. Data are collected at families and aims to encourage families to leave without police force area level but can be broken down to local the need for enforcement action if they are found to authority, Community Safety Partnership (CSP) and have no legal right to be in the UK. Basic Command Unit (BCU) levels. None of these Most elements of this new process went live across levels have an area exactly corresponding to South the UK on 1 March 2011, including a new independent Devon, however data are provided for South Hams Family Returns Panel to advise the UK Border Agency alongside the total figures for England and Wales for on how to ensure the return of those families who do each year from 2007-08 to 2009-10 in Table A. not take up the opportunities to leave under their own Data on domestic violence are collected via the British steam. A range of options has been developed to provide Crime Survey but these can only be broken down to sufficient flexibility for a tailored approach to each regional level. Data for the South West Region are family. provided in Table B. Further information can be found As a backstop, a new option of pre-departure in ‘Homicides, Firearms Offences and Intimate Violence accommodation is being developed for use when other 2009-10’ at the following link: options for ensuring return have failed or are not http://rds.homeoffice.gov.uk/rds/pdfs11/hosb0111.pdf appropriate. This will have a secure perimeter but families Data on police recorded offences of domestic violence will be allowed to leave the premises with permission are collected but cannot be broken down beyond police after a suitable risk assessment. It will have an entirely force area level. Data for Devon and Cornwall police different look and feel to an immigration removal centre force area for 2007-08 to 2009-10 are provided in Table C. with more privacy and strictly time-limited stays. Barnardo’s Table A: Recorded violence against the person offences in South Hams will deliver the key welfare, safeguarding and support and England and Wales, 2007-08 to 2009-10 services. We expect this to open in the summer. Area 2007-08 2008-09 2009-10 The small number of family rooms at Tinsley House Immigration Removal Centre may be used in place of South 634 554 502 Hams the new pre-departure accommodation until May. After May, Tinsley House will only be used for those few families who are refused entry to the UK at the border England 961,099 903,447 871,712 and need to be held for a short time prior to their return and Wales or for criminal and other high-risk families who could not be accommodated safely in the pre-departure accommodation. Table B: Percentage of adults aged 16 to 59 who were victims of domestic abuse in the last year, 2007-08 to 2009-10 BCS Tom Brake: To ask the Secretary of State for the Statistically Home Department (1) if she will introduce a formal significant change: time limit on the detention of children in Tinsley House 2007-08 2008-09 to to Immigration Removal Centre; [47782] 2007-08 2008-09 2009-10 2008-09 2009-10 (2) if she will introduce a formal time limit for South 5.8 4.1 4.7 * — children to be housed in open accommodation and West pre-departure accommodation facilities. [47783] Note: To enable comparisons over time, these figures do not include stalking Damian Green: A new approach to managing family as questions on stalking were not included in the 2007-08 BCS. returns has been developed and was introduced on 1 March. It aims to encourage families to leave without Table C: Reported domestic violence incidents1, Devon and Cornwall the need for enforcement action if they are found to police, 2007-08 to 2009-10 have no legal right to be in the UK. Number of reported domestic violence incidents Where enforcement action does need to be taken, a range of options has been developed to ensure the 2007-08 23,789 safe return of families. These options include open 2008-09 25,872 accommodation and, as a backstop when other options 2009-10 25,659 for ensuring return have failed or are not appropriate, 1 All data are provisional and unverified. pre-departure accommodation. A small number of family rooms at Tinsley House immigration removal centre Detention Centres: Children may be used in place of the new pre-departure accommodation until May. After May, Tinsley House Steve McCabe: To ask the Secretary of State for the will be used only for those few families who are refused Home Department by what date she expects to end the entry to the UK at the border and need to be held for a practice of detaining children of failed asylum seekers. short time prior to their return or for criminal and other [46734] high-risk families who could not be accommodated safely in the pre-departure accommodation. Damian Green: On 16 December 2010, the Government Families will enter open accommodation on a voluntary announced a new package to deliver our commitment basis and will be entirely free to come and go during to end the detention of children for immigration purposes their stay. Families will only enter open accommodation and the immediate closure to children of the family unit where their return can be delivered within 72 hours of at the Yarl’s Wood Immigration Removal Centre. A new the family’s arrival there, or within five working days 1165W Written Answers23 MARCH 2011 Written Answers 1166W for Third Country Unit or Non Suspensive Appeal has made of the number of (a) Brazilian, (b) Russian, (c) Indian cases. If the return fails, the family may remain in open and (d) Chinese nationals resident in the UK. [48338]. accommodation, but their stay will not exceed a maximum The Office for National Statistics collects data on nationality of 28 days. Stays in pre-departure accommodation and from the Annual Population Survey (APS) which is a household in Tinsley House will be strictly time-limited: the normal survey of residents of the UK. It should be noted the survey does maximum will be 72 hours, which may be extended in not include people living in most types of communal establishment. The latest estimates available are for the 12 month period of July exceptional circumstances to a maximum of seven days 2009 to June 2010 and these are shown in Table 1 below. with ministerial authorisation. Table 1: Estimated population resident in the United Kingdom, by Other than in border cases, families will enter open selected nationalities July 2009-June 2010 accommodation, pre-departure accommodation and Thousand Tinsley House only after advice has been sought from a Nationality Estimate CI+/- new independent Family Returns Panel. Brazil 40 9 Tom Brake: To ask the Secretary of State for the China 104 14 Home Department (1) how many families have been India 322 24 separated when one parent is held in immigration Russia 21 6 detention while their children or spouses stay in the Note: community for the purposes of immigration control; ‘CI’—Confidence Interval and how many such families were single parent families Source: where the parent detained was the primary or sole care Annual Population Survey (APS), ONS giver in each of the last five years; [47798] Human Trafficking (2) in how many cases where children were cared for in fostering arrangements or by another parent while Rachel Reeves: To ask the Secretary of State for the their parent was in immigration detention the UK Home Department what steps she plans to take to Border Agency has information on whether the child’s ensure that police receive adequate (a) funding and (b) care arrangements gave rise to child protection training to be able to recognise and deal with cases of concerns which were identified by children’s services; human trafficking. [48530] and of such cases in how many instances were child protection concerns identified. [47784] Damian Green: Combating human trafficking is part of core police business. All new police officers receive Damian Green: The information requested is not mandatory training on trafficking and existing officers recorded centrally by the UK Border Agency and could have access to awareness material. be obtained only through examination of individual case records at disproportionate cost. However, in response Immigration: Correspondence to the Family Removals: Thematic Inspection report by the Independent Chief Inspector of the UK Border Andrew Rosindell: To ask the Secretary of State for Agency, the UK Border Agency has committed to the Home Department how many (a) letters, (b) emails improving the management information held on families. and (c) other items of correspondence her Department The UK Border Agency takes its responsibilities for has received on immigration issues in the last 12 months. safeguarding children seriously and where possible ensures [47440] that families remain together. Typically, separations would take place only in cases where a member of the Damian Green: The UK Border Agency does not family is also a former foreign national prisoner and a routinely collect statistics on the number of inquiries decision has been made to maintain their detention made by members of the public and these could be pending deportation. Under the new arrangements for obtained only at disproportionate cost. However figures managing family returns, families without any criminal are published annually by the Cabinet Office on inquiries history would only be separated in exceptional from Members of Parliament. In 2009 the UK Border circumstances and after advice had been sought from Agency received 66,320 inquiries by letter or e-mail. the independent Family Returns Panel. The figures for 2010 will be published in due course. Sexual Offences: Males Foreign Nationals Mr Ward: To ask the Secretary of State for the Home Mr Douglas Alexander: To ask the Secretary of State Department if she will (a) assess the adequacy of for the Home Department what estimate she has made provision of specialist support for males who have been (a) (b) (c) of the number of Brazilian, Russian, subject to sexual violence and (b) take steps to increase Indian and (d) Chinese nationals resident in the UK. such provision. [47168] [48338] Lynne Featherstone [holding answer 16 March 2011]: Mr Hurd: I have been asked to reply. The Secretary of State for the Home Department has The information requested falls within the responsibility confirmed that Home Office funding of more than of the UK Statistics Authority. I have asked the authority £28 million will be available over four years to support to reply. victims of sexual and domestic violence including male Letter from Stephen Penneck, dated March 2011: victims of sexual violence. Of this, £1.72 million will be As Director General for the Office for National Statistics available each year on a stable basis to support independent (ONS), I have been asked to respond to your question asking the sexual violence advisers in both the specialist voluntary Secretary of State for the Home Department, what estimate she sector and in SARCs. 1167W Written Answers23 MARCH 2011 Written Answers 1168W

Traffic Wardens force area from 1996-97 to 2009-10. The tables also contain the number of full-time equivalent police officers Mr Ruffley: To ask the Secretary of State for the with a traffic function in each police force area from Home Department how many (a) traffic enforcement 2002-03 to 2009-10. Figures prior to 2002-03 are not officers, (b) traffic wardens and (c) council parking available. attendants were operating in each police force area in The number of traffic wardens employed by the England and Wales in each year since 1997. [47793] police has declined substantially in recent years. This reflects the increasing role of local authorities in parking James Brokenshire: The latest available data are provided control. However, figures for council parking attendants in the tables which show the number of full-time equivalent are not provided as the Home Office does not collect traffic wardens employed by the police in each police statistics on local authority employed staff.

Police officer traffic function1 (FTE)2 in England and Wales as at 31 March4, 5. England and Wales Traffic function 2002-03 2003-043 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Avon Police force and 216 222 228 215 148 160 168 157 Somerset Bedfordshire 75 80 80 81 68 65 56 57 Cambridgeshire 85 99 101 99 96 90 99 101 Cheshire 194 200 194 85 91 94 88 90 Cleveland 64 73 2 61 72 104 108 115 Cumbria 107 110 108 111 114 99 88 86 Derbyshire 107 121 116 119 110 109 89 88 Devon and Cornwall 192 198 211 215 225 232 236 239 Dorset 91 86 82 81 80 78 79 76 Durham 111 119 108 105 100 107 104 96 Essex 241 242 243 243 231 219 222 257 Gloucestershire 62 66 67 73 67 67 67 65 Greater Manchester 406 392 359 342 352 338 315 310 Hampshire 248 246 244 240 237 214 187 181 Hertfordshire 150 151 149 149 145 152 151 139 Humberside 123 119 225 181 100 104 97 116 Kent 104 — 122 116 109 122 138 138 Lancashire 198 187 190 197 184 180 181 171 Leicestershire 92 95 85 77 72 74 85 86 Lincolnshire 90 89 96 102 100 92 86 84 London, City of 24 24 28 24 23 26 23 30 Merseyside 125 119 115 138 150 152 167 164 Metropolitan Police 583 592 1,029 603 611 612 290 297 Norfolk 120 121 107 112 110 118 109 102 Northamptonshire 70 71 65 63 63 60 68 68 Northumbria 245 253 165 167 172 165 164 189 North Yorkshire 151 138 101 97 99 105 103 99 Nottinghamshire 26 121 133 134 139 144 139 47 South Yorkshire 180 127 134 141 143 144 135 130 Staffordshire5049582835343067 Suffolk 68 72 76 80 77 81 72 67 Surrey 108 110 107 99 87 98 97 100 Sussex 164 163 163 160 169 160 166 159 Thames Valley 259 259 245 236 237 250 249 228 Warwickshire 103 103 93 97 93 93 14 10 West Mercia 292 115 117 116 129 128 119 101 West Midlands 384 405 393 401 383 352 351 351 West Yorkshire 320 314 317 343 324 283 297 315 Wiltshire 91 96 93 13 89 91 85 83 Dyfed-Powys 136 105 141 143 136 126 94 84 Gwent 93 95 96 102 95 57 49 63 North Wales 115 114 76 81 98 90 88 88 South Wales 243 245 243 243 252 233 165 143 Total of 43 forces 6,902 6,706 7,104 6,511 6,412 6,299 5,714 5,634 1169W Written Answers23 MARCH 2011 Written Answers 1170W

1 Staff with multiple responsibilities (or designations) are recorded under their primary role or function. The deployment of police officers is an operational matter for individual chief constables. 2 This table contains full-time equivalent figures that have been rounded to the nearest whole number. Because of rounding, there may be an apparent discrepancy between the totals in this table and totals in similar published tables. 3 Data not provided by Kent police force. 4 This traffic function table does not appear on our website but is used for policy purposes such as briefing documents, as a result, the data are confirmed with forces. 5 Definition of the traffic function: Staff who are predominantly employed on motor-cycles or in patrol vehicles for the policing of traffic and motorway related duties. This includes officers employed in accident investigation, vehicle examination and radar duties. Include staff who are predominantly employed to support the traffic function of the force including radar, accident investigation, vehicle examination and traffic administration. Include those officers working with hazardous chemicals, and those administrative staff predominantly serving the internal needs of the traffic function of the force and those officer/staff in supporting roles.

Police staff strength as at 31 March, by police force area. England and Wales Traffic wardens 1999- Police force 1996-97 1997-98 1998-99 2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 200-08 2008-09 2009-10

Avon and 108 114 115 59 48 44 43 34 0 0 0 0 0 0 Somerset Bedfordshire 31 26 10 93322000000 Cambridgeshire 39 33 38 35 38 36 35 17 0 0 0 0 0 0 Cheshire 34 35 31 25 20 20 19 15 17 0 0 0 0 0 Cleveland22231813101278000000 Cumbria 21 21 16 60000000000 Derbyshire50535050445048432521127 0 0 Devon and 114 115 113 119 110 101 103 102 96 89 47 37 3 1 Cornwall Dorset61494241371200000000 Durham222221221919154000000 Essex 136 123 121 102 82 59 38 21 8 7 9 9 8 9 Gloucestershire 33 38 35 35 30 30 31 21 16 14 9 0 0 0 Greater 208 189 160 96 88 87 88 88 90 71 32 26 5 5 Manchester Hampshire 77 65 68 53 53 31 25 23 16 7 6 3 2 1 Hertfordshire725544384542389000000 Humberside 60 59 52 53 51 51 48 46 45 38 20 12 10 6 Kent58523110000000000 Lancashire 115 110 101 94 87 84 50 17 2 0 0 0 0 0 Leicestershire7975706765726151265 10 0 0 Lincolnshire 24 26 22 20 21 21 21 18 20 14 10 10 7 9 London, City 00000000000000 of Merseyside 132 115 114 106 93 63 52 43 10 5 38 0 0 0 Metropolitan 1,383 1,166 945 817 689 632 687 505 449 411 317 298 275 249 Police Norfolk 43 43 40 37 33 34 33 31 28 26 22 12 10 9 Northamptonshire 25 25 23 16 11 7 7 5421111 Northumbria 112 78 70 70 72 71 59 56 51 48 32 18 11 4 North 26 23 23 19 12 10 0 10 0 6 3 2 1 1 Yorkshire Nottinghamshire 68 61 65 58 39 30 29 33 12 4 1 0 0 0 South 80 80 76 62 71 77 68 37 18 0 0 0 0 0 Yorkshire Staffordshire373531241712101000000 Suffolk 33 32 33 31 29 29 25 25 20 18 0 0 0 0 Surrey302521162520178530000 Sussex 140 132 113 110 98 62 61 67 62 48 48 36 32 30 Thames Valley 117 103 95 58 45 51 42 36 24 16 8 7 5 2 Warwickshire 12 12 10 89998453111 WestMercia383531302321151391064 3 1 West Midlands 210 218 192 175 128 78 74 72 66 51 24 0 0 0 West Yorkshire 136 129 118 116 107 99 98 85 42 26 12 9 5 4 Wiltshire 21 19 20 15 7875100000 Dyfed-Powys 20 19 15 14 15 12 13 10 10 8 10 10 11 8 Gwent 34 33 32 30 28 28 27 25 21 22 23 20 19 15 NorthWales1816151212875421111 South Wales 106 109 108 100 104 100 99 92 82 77 72 69 60 50 1171W Written Answers23 MARCH 2011 Written Answers 1172W

Police staff strength as at 31 March, by police force area. England and Wales Traffic wardens 1999- Police force 1996-97 1997-98 1998-99 2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 200-08 2008-09 2009-10

Total of 43 4,180 3,788 3,342 2,855 2,516 2,233 2,108 1,688 1,281 1,053 764 590 468 409 forces Note: This table contains full-time equivalent figures that have been rounded to the nearest whole number. Because of rounding there may be an apparent discrepancy between the totals and the sums of the constituent items.

EDUCATION three and seven years. The study looks at the impact on children’s intellectual and social/behavioural development of background Capita characteristics related to parents, the child’s home learning environment and the pre-school settings that children attend. The final report from EPPE is available at: Kate Green: To ask the Secretary of State for Education http://www.education.gov.uk/publications/RSG/ how many contracts his Department has with Capita; publicationDetail/Page1/SSU/FR/2004/01 and how much it has paid to Capita under such contracts The Departmental funded National Evaluation of Sure Start in 2010-11 to date. [18631] (NESS) is a long term wide-ranging evaluation of Sure Start Local Programmes (SSLPs). The aim of SSLPs was to enhance Tim Loughton: The main contracts held with Capita the life chances for young children growing up in disadvantaged are for: the delivery of the National Strategies Programme, neighbourhoods, to enhance health and well-being during the the project management of the Academies Programme, early years, to increase the chances that children would enter the managed delivery of the Teachers Pension Scheme, school ready to learn, be academically successful in school, socially successful in their communities and occupationally successful the Criminal Records Bureau checking service and the when adult. The impact of Sure Start Local Programmes on Managed Service for the Provision of Interim Personnel. five-year-olds and their families’ was published in November The total value of payments to the Capita Group made 2010 and is available at: as at 22 March 2011 were £118 million which includes http://www.education.gov.uk/publications/standard/ managed service costs and payments for other parties. publicationdetail/page1/dfe-rr067 In 2009, the Department commissioned the Tellus4 National Child Development Survey. The Tellus survey was designed to gather information from children and young people about their behaviour and to Chris Ruane: To ask the Secretary of State for Education seek their views on aspects of their lives, schools and local areas. The survey included questions about the children’s physical and what research his Department has (a) commissioned emotional well-being. The report was published in March 2010 and (b) evaluated into development in childhood and and is available at: well-being. [48300] http://www.education.gov.uk/publications/ eOrderingDownload/DCSF-RR218.pdf Sarah Teather: There is no one study explicitly looking The Children’s Society’s “2009 National Survey of Young into the relationship between development in childhood People’s Well-being” was the first comprehensive, UK-wide and well-being. However, there are studies which the investigation of childhood well-being—or happiness—from a Department has commissioned or is aware of which young person’s point of view. Children were also asked questions look at child development or the well-being of children: exploring the impact of family structure on well-being, such as Funding support was previously provided for the Economic living in a lone or step-parent family. The initial report providing and Social Research Council’s (ESRC) study “Understanding a short introduction to some of the main topics covered by the Society”. The purpose of this longitudinal study is to understand survey and is available at: social and economic change in Britain at the household and http://www.childrenssociety.org.uk/sites/default/files/tcs/ individual levels. Wave 3 of their survey due to be collected research_docs/Wellbeing%20report%20summary_0.pdf 2011/12 will contain a module on child development which will The World Health Organisation’s “Young people’s health in cover questions on cognitive development and emotional adjustment; Great Britain and Ireland” published findings from the “health a child’s experience of school; a child’s activities at home; and behaviour of school aged children survey 2006”. The overall aim parental interactions with the child. The report is available at: of the study was to gain new insights and increase understanding http://research.understandingsociety.org.uk/findings/early- of adolescent health behaviours, health and well-being, with an findings emphasis on the social determinants of adolescent health, particularly The Millennium Cohort Study (MCS), commissioned by the the social contexts of young people’s lives. The report is available Economic and Social Research Council (ESRC) is a longitudinal at: study following the lives of around 19,000 children born in the http://www.hbsc.org/downloads/ UK in 2000/01. The MCS covers topics such as parenting, child YoungPeoplesHealth_GB&Ireland.pdf care, school choice, child behaviour and cognitive development, child and parental health, parents’ employment and education, income and poverty, housing, neighbourhood and residential Children mobility, and social capital and ethnicity. Funding support for the study is provided across Government including the Department Chris Ruane: To ask the Secretary of State for Education for Education. “Children of the 21st century; the first five years” which documents the first five years of life of the millennium whether his Department has (a) commissioned and (b) cohort children was published in February 2010, available at: evaluated research on childhood friendship bonds. http://www.cls.ioe.ac.uk/ [48308] publications.asp?section=00010001000600070003 The Effective Pre-school and Primary Education Study (EPPE) Sarah Teather: The Department has either commissioned funded by the Department, is a longitudinal study of a national or evaluated the following research into childhood friendship sample of young children’s development between the ages of bonds: 1173W Written Answers23 MARCH 2011 Written Answers 1174W

Funding support has been provided for the Economic and maintained and (b) private, voluntary and independent Social Research Council’s (ESRC) study, ‘Understanding Society’. full day childcare settings in the west midlands were The study includes a question on friendship—the adult responsible deemed (i) outstanding, (ii) good, (iii) satisfactory and for children aged 0-16 in the household is asked whether (all) (iv) inadequate by Ofsted in each of the last three years. child(ren) have children around for tea or a snack once a fortnight. The study finds that, if a young person’s ability to have friends [47880] around is reduced due to material deprivation, their life satisfaction is negatively affected. The report is available at: Sarah Teather [holding answer 22 March 2011]: These http://research.understandingsociety.org.uk/findings/early- data are held by Ofsted. HM Chief Inspector, Christine findings Gilbert, has written to the hon. Member and a copy of In 2009 the Department commissioned the Tellus 4 National Survey. Findings related to friendship include that the majority of her reply has been placed in the Libraries. children and young people (92%) say that they have one or more Letter from Christine Gilbert, dated 17 March 2011: good friends and 66% said when they are worried about something they can talk to their friends. Girls are more likely to talk to their Your recent parliamentary question has been passed to me, as friends when worried than boys. Overall, 31% of children said Her Majesty’s Chief Inspector, for response. they worried about their friends. Friends were a source of help for Ofsted publishes quarterly official statistics on early years planning their future for around three out of five of children registered inspection outcomes, at local authority, government surveyed. The report is available at: office region and national level, with the annual position summarised http://www.education.gov.uk/publications/ in the Annual Report of Her Majesty’s Chief Inspector of Education, eOrderingDownload/DCSF-RR218.pdf Children’s Services and Skills. The figures given in this response The Children’s Society has developed their Good Childhood are consistent with published statistics. Index, made up of 10 indicators designed to measure children’s Tables A, B and C show the inspection outcomes of childcare sense of well-being about different aspects of their life and providers on the Early Years Register in the West Midlands which includes the question ‘how happy are you with your friends?’ The were active at the end of each period, since September 2008. report is available at: Please note that we do not classify early years registered providers http://www.childrenssociety.org.uk/what-we-do/research/ as ‘maintained’. In addition, because there is no requirement for initiatives/well-being/background-programme-0 Ofsted to capture the funding streams of providers as part of the ‘The World Health Organisation: young people’s health in regulation and inspection of early years registered providers, we Great Britain and Ireland’ published findings from the Health do not hold data on whether such providers are private, voluntary Behaviour of School Age Children Survey 2006. The proportion or independent. of children having three or more close friends of the same gender The figures provided relate only to the inspection of those decreases between age 11 and 15, and boys are more likely than providers on the Early Years Register against the Early Years girls to report having three or more close friends. At age 11, across Foundation Stage framework and do not include a minority of all participating countries, England scores the highest for girls providers inspected before September 2008, under the previous reporting having three or more close friends (91%). Rates of time inspection framework. This is because there is no direct comparison spent out in the evenings with friends increase significantly between between the two frameworks. Childcare providers offering care ages 11 and 15 years in the majority of countries for both boys for children from birth to the 31 August following the child’s fifth and girls. Again, there is a significant increase in prevalence of birthday are required to register on the Early Years Register. The daily electronic communication between ages 11 and 15. The arrangements of the Early Years Foundation Stage came into report is available at: effect in September 2008, marking the beginning of a 47 month http://www.hbsc.org/publications/reports.html cycle of inspection, during which Ofsted aims to inspect all Children: Day Care providers on the Early Years Register at least once. A copy of this reply has been sent to Sarah Teather MP, Mr Jim Cunningham: To ask the Secretary of State Minister of State for Children and Families, and will be placed in for Education how many and what proportion of (a) the library of both Houses.

Table A: Inspection outcomes for early years registered providers in the west midlands inspected between 1 September 2008 and 31 August 2009 Outstanding Good Satisfactory Inadequate Total number

Childminders 137 (7%) 1,120 (60%) 530 (28%) 92 (5%) 1,879 Childcare on non-domestic 119 (13%) 510 (57%) 231 (26%) 42 (5%) 902 premises Childcare on domestic premises 1 (25%) 3 (75%) 0 (0%) 0 (0%) 4 All provision 257 (9%) 1,633 (59%) 761 (27%) 134 (5%) 2,785 Notes: 1. Percentages are rounded and do not always add exactly to 100. 2. Data relate to the most recent inspection during the period of providers who were active at 31 August 2009. 3. Data only relate to inspections where children were being cared for at time of inspection. Table B: Inspection outcomes for early years registered providers in the west midlands inspected between 1 September 2009 and 31 August 2010 Outstanding Good Satisfactory Inadequate Total number

Childminders 91 (8%) 621 (56%) 357 (32%) 38 (3%) 1,107 Childcare on non-domestic 103 (14%) 447 (61%) 154 (21%) 25 (3%) 729 premises Childcare on domestic premises 1 (33%) 2 (67%) 0 (0%) 0 (0%) 3 All provision 195 (11%) 1,070 (58%) 511 (28%) 63 (3%) 1,839 Notes: 1. Percentages are rounded and do not always add exactly to 100. 2. Data relate to the most recent Inspection during the period of providers who were active at 31 August 2010. 3. Data only relate to inspections where children were being cared for at time of inspection. 1175W Written Answers23 MARCH 2011 Written Answers 1176W

Table C: Inspection outcomes for early years registered providers in the west midlands inspected between 1 September 2010 and 31 December 2010 Outstanding Good Satisfactory Inadequate Total number

Childminders 4 (3%) 68 (59%) 39 (34%) 4 (3%) 115 Childcare on non-domestic 18 (16%) 66 (59%) 23 (21%) 4 (4%) 111 premises Childcare on domestic premises 0 (0%) 0 (0%) 0 (0%) 0 (0%) 0 All provision 22 (10%) 134 (59%) 62 (27%) 8 (4%) 226 Notes: 1. Percentages are rounded and do not always add exactly to 100. 2. Data relate to the most recent inspection during the period of providers who were active at 31 December 2010. 3. Data only relate to inspections where children were being cared for at time of inspection.

Children: Obesity calculator, dictionary, desk, etc. This measure of material inequality was the main driver for the UK’s poor rank Mr Amess: To ask the Secretary of State for Education against other countries for this dimension of inequality th what guidance his Department (a) has issued to schools (the UK was ranked 19 out of 24 countries). since October 2010 and (b) plans to issue to schools in The UK ranked 13th out of 24 countries for educational the next six months on reducing obesity among persons well-being. There was below average inequality for maths under the age of 16; and if he will make a statement. literacy, but above average inequality in science literacy. [45594] The UK had lower than average inequality for each measure of health well-being (the UK was 11th out of Sarah Teather: The Department for Education has the 24 countries). We performed particularly well in not issued any specific guidance to schools on reducing comparison to other countries in the self-reported health obesity since October 2010 and has no plans to issue complaints measure. further guidance in the next six months. However, this Government recognise that through physical education, The UK’s overall ranking was in the bottom two-fifths competitive school sport and healthy eating, schools of countries, alongside Belgium, the Czech Republic, can help address the problem of childhood obesity. In Hungary, Luxembourg, Slovakia and Spain. the past, the Department has made available guidance The OECD report “Doing Better for Children” (2009) and resources to help schools provide a healthy environment presents a similarly mixed picture for national average by providing nutritious school lunches, improving levels of child well-being in rich countries (as distinct participation in high quality PE and sport opportunities, from the UNICEF report, which addresses inequalities). helping children learn about health through Personal, There is a strong positive in respect of the quality of Social, Health and Economic education and practical school life, where we are among the OECD’s best- activities such as cooking. Guidance from DFE and performing countries. The strongest negative is on risky Department of Health has also issued to schools on behaviours (smoking, drinking, teenage pregnancy) where how they can support the National Child Measurement we are among the worst. For the remaining dimensions— Programme, which collects essential height and weight material well-being, educational well-being, housing/ data on primary school pupils in Reception and Year 6. environment, and health/safety—the UK’s performance Children: Well-being is broadly similar to the OECD average. UNICEF’s analysis brings out the relationship between Chris Ruane: To ask the Secretary of State for Education lower inequality and higher median scores. UNICEF what assessment he has made of the relative position of has found that those countries with lower ‘bottom-end’ the UK in international comparator tables on the well-being inequality are also those countries with higher median of children. [44601] scores, particularly for education and health well-being. This suggests that it is possible to reduce inequality and Tim Loughton: The most recent and authoritative have high performance in a country. Similarly, the 2010 international report on the well-being of children is Schools White Paper “The Importance of Teaching” UNICEF’s Report Card 9, “The children left behind: a highlights the importance of reducing attainment gaps league table of inequality in child well-being in the between the rich and poor while maintaining high standards. world’s rich countries”, published on 3 December 2010. The Government remain committed to the goal of The report assesses inequalities in child well-being for eradicating child poverty by 2020. The Child Poverty 24 of the world’s richest countries, regarding material Act 2010 requires the Government to publish a child well-being, educational well-being and health well-being. poverty strategy by spring 2011. To inform this process ‘Material inequality’ measures household income, access the Government conducted an eight week period of to basic educational resources and household living consultation with prominent members of the child poverty space. ‘Educational inequality’ measures reading, maths lobby and other interested parties. The consultation ran and science literacy using the 2006 Programme for for eight weeks from 21 December 2010 to 15 February International Student Assessment (PISA). ‘Health 2011. inequality’ measures self-reported health, healthy eating The Government continue to believe that work provides and vigorous physical activity, using the 2005/06 “Health parents and their children with the most sustainable Behaviour of School-aged Children” (HBSC) study. route out of poverty. The Government want parents to For material inequality, the UK showed higher levels take advantage of the employment opportunities currently of inequality than the OECD average, in particular for available. As a consequence the UK welfare system is access to basic educational resources at home such as a being reformed to allow individuals and parents keep 1177W Written Answers23 MARCH 2011 Written Answers 1178W more of their earnings and progress in work. This will Education Maintenance Allowance: Birmingham enable parents to give their children the best possible start in life providing stable financial support for families Shabana Mahmood: To ask the Secretary of State for in the crucial early years of a child’s life. A strong Education how many students in (a) Birmingham, foundation in the early years increases the probability Ladywood constituency and (b) Birmingham in receipt of positive outcomes across the child’s life; a weak of education maintenance allowance (EMA) will have foundation significantly increases the risk of later difficulties. their EMA terminated before their programme of study is complete. [43118] Drugs: Young People Mr Gibb: This is a matter for the Young People’s Chris Ruane: To ask the Secretary of State for Education Learning Agency (YPLA) who operate the education what estimate has been made of the proportion of maintenance allowance for the Department for Education children under 15 in each region who have (a) used and manage the Capita contract. Peter Lauener, the cannabis and (b) been sexually active in the last 12 months YPLA’s chief executive, has written to the hon. Member for Birmingham, Ladywood with the information requested for which figures are available. [48244] and a copy of his reply has been placed in the House Libraries. Sarah Teather: Information on cannabis use among young people aged 11-15 was provided in the report Letter from Peter Lauener, dated 22 March 2011: Smoking, Drinking and Drug Use among YoungPeople, I am writing in response to your Parliamentary Question published by the NHS Information Centre in 2009. A PQ43118 that asked: regional breakdown, with data averaged over three years “How many students in (a) Birmingham, Ladywood constituency due to the survey size, is provided in the following table. and (b) Birmingham in receipt of education maintenance allowance (EMA) will cease to receive EMA before their course is complete”. Proportion of young people aged 11-15 who took cannabis in the last The application form for Education Maintenance Allowance year (average for 2006-08) (EMA) does not require either the name of the course or its end Region Percentage date. Therefore we do not hold information on the number of students in receipt of EMA who are on programmes of study North East 8 which are due to continue after EMA terminates on 31 August North West 12 2011. Yorkshire and Humber 11 West Midlands 10 Educational Psychology East Midlands 9 East of England 10 Nicola Blackwood: To ask the Secretary of State for London 9 Education what assistance his Department provides to South East 9 educational psychologists. [32345] South West 10 Sarah Teather: The Department does not provide The Government do not routinely collect data on assistance to educational psychologists (EPs) who are sexual activity by age. It is also the case that the surveys in post—it is for employers to provide the necessary that have been carried out on this issue, typically report support to their work force. The Department’s support on sexual activity below age 16, rather than under 15, for EPs is provided through the Children’s Workforce given that the age of consent is 16. The most authoritative Development Council’s (CWDC) administration of a and relevant of the surveys in this area is the National scheme for collecting voluntary subscriptions from local Survey of Sexual Attitudes and Lifestyles (NATSAL), authorities (LAs) to support EPs’ initial training. Since which is conducted every 10 years. NATSAL 2000 LA financial contributions have been steadily decreasing, identified that among the 16 to 19-year-olds interviewed, this has involved CWDC meeting the shortfall in funding. 30% of young men and 26% of young women reported However, the current funding scheme is not sustainable. that their first sexual experience occurred before they We have announced that the Department will meet the reached age 16. This was consistent with the findings costs of completing the cohorts of educational psychologists for young men and women in the survey who were aged currently in training, and for one further cohort due to 25-29, indicating that there had been no change in the begin training in September 2011. We are taking advantage proportion of young people having sex before age 16 of the opportunity presented by the consultation on the over the preceding decade. The median age of first sex Green Paper “Support and aspiration: A new approach among 16 to 19-year-olds in the survey in 2000, was to special educational needs and disability” to consider age 16. options for placing the training of educational psychologists Fieldwork for NATSAL 2010 has been completed, on a more secure footing. but the findings have not yet been published. However, a range of separate smaller scale surveys that have been Families undertaken since 2000 have consistently shown between a quarter and a third of young people reporting that Chris Ruane: To ask the Secretary of State for Education they had their first sexual experience before age 16. A what recent research his Department has (a) commissioned tracking survey that was used to assess young people’s and (b) evaluated on the issue of conflicts in the family. reactions to the Teenage Pregnancy Strategy’s media [48506] campaign showed that in 2007, the mean age for first sex among young men was 16.48 years and for young Sarah Teather: The Department has commissioned women was 16.53 years. These results were the same as and is evaluating the following pieces of research which the results from the same survey carried out in 2004. cover the issue of conflicts in the family: 1179W Written Answers23 MARCH 2011 Written Answers 1180W

In 2009, the Department commissioned research on the separating It set out several site options, including the Downshall parents child poverty pilots. The separating parents child poverty Centre. Since November 2010, Partnerships for Schools, pilots are testing how to better co-ordinate support and services the proposers (E-ACT), officials from the Department for parents who are separating or have recently separated. The and representatives of Redbridge council have had evaluation study looking at the effectiveness of these pilots will complete in spring 2011. discussions about the site of the proposed free school, including the potential use of the Downshall Centre. In 2010, the Department commissioned the evaluation of the Parenting Information Programme (PIP). The PIP is a contact These discussions have included the need for the council activity supporting parents to focus on the needs of their child to relocate some community facilities if the Downshall following their separation, to improve their relations and help Centre is used. them reach an amicable agreement on contact arrangements. The The project is currently at the business case and plan evaluation will provide evidence on the effectiveness of the PIP stage. The business case and plan is being developed ordered by courts to support contact agreements, along with the sustainability and quality of these arrangements. This research is and will include the case for the use of a chosen site due to end in March 2011. by the proposed school. No final decision to open In 2006, the then Department for Children, Schools and Families the school will be made until a full assessment of the commissioned the National Centre for Social Research to conduct business case and plan has been completed and the a programme of research to monitor and evaluate family intervention Secretary of State has decided whether to sign the funding projects (FIPS) as they were then known. Family intervention agreement with the proposers. As part of this process, services work with the most challenging families and tackle issues the proposers (E-ACT) will be consulting on their plans such as antisocial behaviour, youth crime, unmet health issues, to open a free school in Ilford. If the project proceeds, family functioning and domestic violence concerns, issues at then transport issues will be fully considered and other school (such as truancy/exclusion), poor housing and unemployment agencies will be involved as necessary before the school in families. This programme of work is currently ongoing and the data it generates is used to inform official statistical releases opens. which provide a range of information about family interventions. The most recent official statistical release can be found at: Higher Education: Sports http://www.education.gov.uk/rsgateway/DB/STR/d000956/ osr09-2010.pdf Ian Austin: To ask the Secretary of State for Education In addition, data from the monitoring of FIPS has been used what plans (a) he and (b) each Minister in his Department to develop further commentary and analysis of the families has to visit specialist sports colleges in the next three receiving the intervention services. This additional information months. [36827] was published by the Department for Education in November 2010 in the report “Monitoring and Evaluation of Family Tim Loughton: Subject to diary pressures and any Interventions”. This report can be found at: urgent parliamentary business, the Secretary of State http://www.education.gov.uk/publications// and other Ministers at the Department for Education eOrderingDownload/DFE-RR044.pdf plan to visit a number of educational institutions over Free Schools: Ilford the next three months including those with a specialism in sport. Mike Gapes: To ask the Secretary of State for Education Literacy (1) if he will discuss with the Secretary of State for Transport the traffic implications associated with the Chris Ruane: To ask the Secretary of State for establishment of a free school at the Downshall Centre Education what the adult literacy rate was for each (a) in Ilford; [48367] region, (b) local authority area and (c) parliamentary (2) what discussions Partnership for Schools has had constituency in the latest period for which figures are with representatives of Redbridge Council on the future available. [48190] of the Downshall Centre in Ilford; [48371] (3) when his Department was notified of the proposal Mr Hayes: The most recent data available on adult to use the Downshall Centre in Ilford as a location for a literacy rates in England are those published in the 2003 free school; [48379] Skills for Life survey.1 This survey was based on fieldwork (4) what discussions his Department had with conducted between May 2002 and June 2003 with adults representatives of (a) Redbridge Council and (b) aged between 16 and 65 (inclusive). Literacy levels for Partnership for Schools prior to the decision on the the nine major administrative regions in England reported location of a free school in Ilford; [48380] by the survey are included in table 1. 1 (5) what consultation (a) his Department and (b) Williams, J., S. Clemens, K. Oleinikoya and K. Tarvin (2003) “The Skills for Life Survey: a national needs and impact survey of Partnership for Schools conducted on the location of a literacy, numeracy and ICT skills”, Department for Education free school in Ilford; [48381] and Skills: Research Report 490, available online at: (6) if he will meet representatives of Redbridge Council http://www.education.gov.uk/publications/eOrderingDownload/ to discuss the potential effects on local community RB490.pdf groups of the establishment of a free school at the accessed 18 March 2011. Downshall Centre in Ilford; [48382] Table 1: Literacy by region (percentage of population) (7) when his Department was first informed that Region/literacy level Level 11 and above E-Act wished to purchase the Downshall Centre in Ilford. [48383] North East 78 London 81 Mr Gibb [holding answer 22 March 2011]: The Yorkshire and Humber 81 application form for the proposed free school in Ilford West Midlands 82 was received by the Department on 5 November 2010. North West 83 1181W Written Answers23 MARCH 2011 Written Answers 1182W

Table 1: Literacy by region (percentage of population) Project title Project description Region/literacy level Level 11 and above

East Midlands 84 National Evaluation of Sure Studies the effectiveness of Sure Start Start local programmes in England South West 86 and will last until 2012. It is made East of England 88 up of several sections: South East 88 Implementation, Impact, Local Context Analysis, Cost Effectiveness and Support to Local Programmes. England 84 Evaluation of Disabled DCATCH is a pilot initiative 1 Equivalent to a low-level GCSE (D-G)) or above. Calculated as Children’s Access to running from March 2008 to March 100—(percentage at Entry Level 3 or below). Childcare (DCATCH)— 2011; the focus of the pilots has Base: Pilot been on improving the range and All respondents with literacy scores (7873) quality of child care for families of Source: disabled children, and involving Skills for Life survey, 2003: p.42 families in shaping child care services. The aims of the evaluation Modelled estimates of literacy levels for approximately include: (i) to evaluate the impacts of these projects on disabled 350 local education authorities (LEA) in England were children and their families; and (ii) calculated using the survey data. The best way to access identify key lessons for policy information on individual LEAs is via the Skills for Life development on child care provision survey web-tool available at: for disabled children. www.bis.gov.uk/skillsforlifesurvey The Childcare and Early Provides robust information on the Years Providers Survey key characteristics of child care Literacy levels for each LEA can be located by accessing (2010-2013) provision in the early years and the website and clicking on the relevant Government child care sector, as well as Office region hyperlink (e.g. ‘East Midlands’) and then information on its workforce and on the relevant Learning and Skills Council area (e.g. the costs of child care that is ‘Derbyshire’). This then provides a list of LEAs in the available given area. The LEA level results can be accessed by The Childcare and Early Provides nationally representative Years Survey of Parents annual statistics concerning parents’ clicking on the hyperlink to results by LEA next to the 2010-2012 views on, and experiences of, table icon (e.g. Derbyshire results by LEA). different types of child care. The The survey did not provide literacy results by research is based on interviews with parliamentary constituency. parents of children aged 0-14 Evaluation of Graduate The GLF focuses specifically on the The Skills for Life survey was repeated in 2010. Leader Fund (GLF) goal of placing a graduate leader in Fieldwork is now complete, and results of the survey every PVI full day care setting by are due to be made public later this year. 2015. The evaluation consists of a range of research activities designed to assess the impact and implementation of GLF. The Evaluation of A long-term and substantive Pre-school Education: Research Children’s Centres in evaluation looking at a broad range England of children’s centres across the country, the different models of Chris Ruane: To ask the Secretary of State for Education provision, and their impact on for what research into early years education his Department service users. The key aims are to provide rigorous information about is providing funding. [48313] the effectiveness of children’s centres. Sarah Teather: Research into early years education The Extension of the EPPE is large scale, longitudinal for which the Department is providing funding is as Effective Pre School and study that follows the follows: Primary Education (EPPE) developmental progress of 3,000 Project to end of Key Stage children originally in various types Project title Project description 3 (KS3) of pre-school education. This element provides an additional Implementation Study of Identifying good practice in extension in order to follow the Free Early Years Education implementing free early education same cohort to the end of key for Two Year Old Children for disadvantaged two year old stage 3. children. The research is based on The Millennium Cohort A multi-disciplinary research project interviews with local authorities and Study following the lives of around 19,000 child care providers. children born in the UK in 2000-01. Provider Influence On The To help identify what early years The study has been tracking the Early Home Learning settings could do to better support children through their early Environment parents to develop their children’s childhood years and plans to follow learning at home. The findings them into adulthood. identify best practice; help quantify Avon Longitudinal Study of A large-scale longitudinal study of the benefits of support to parents Parents and Children— children born in Avon during the and offer suggestions about how to ALSPAC early 1990s. More than 14,000 make best use of resources. mothers enrolled during pregnancy Child Development Grant Aimed at assessing what impact the in 1991 and 1992, and the health Evaluation incentives and support offered by and development of their children the Child Development Grant have has been followed in great detail on engagement. ever since. 1183W Written Answers23 MARCH 2011 Written Answers 1184W

and local authorities in the SEN code of practice to Project title Project description reflect the proposals for change in the Green Paper and Effective Pre-school, This latest extension to the project: responses to the consultation. primary and secondary continues to follow the same group In the Green Paper we ask whether the statutory education 3-14 (EPPSE)— of students (originally from EPPE) continuation to 16 through their final year of guidance on inclusion and school choice, ‘Inclusive compulsory schooling (year 11, age Schooling’, allows appropriately for parental preference 16) and on to their post-16 for either mainstream or special schools. In the light of educational, training and the responses to the Green Paper we will consider employment choices. whether to incorporate this guidance into the new code. The Green Paper also made a commitment to simplify Private Education and improve non-statutory guidance so that it is clear, accessible and helpful, and we will withdraw guidance John Robertson: To ask the Secretary of State for that does not provide useful support. Education how many independent schools applied to On non-statutory guidance, the Department issued become (a) academies and (b) free schools in the last guidance on pupils with behavioural, emotional and year for which figures are available. [43559] social difficulties (BESD) in 2008. The Green Paper is consulting on the categorisation of BESD and whether Mr Gibb: Independent schools that wish to become the term adequately identifies difficulties that may underlie academies follow the free school application process difficult behaviour. The revised and updated code will and are considered alongside applications for new schools. include guidance on behaviour, following consideration To date, 105 independent schools have applied to become of responses to the consultation, and we intend, therefore, free schools. to withdraw the BESD guidance. The revised code will also incorporate guidance on the effective use of data in Schools: Transport monitoring the progress and achievement of pupils with SEN and disabilities currently set out in guidance on categorising SEN for School Census purposes (2005), Mr Alan Campbell: To ask the Secretary of State for Progression Guidance (2009), and Breaking the Link Education pursuant to the answer of 19 January 2011, between Special Educational Needs and Low Attainment Official Report, column 867W, on the North East, what (2010). method of transport he used to travel to the three schools and colleges; and what the cost of the transport We will remove good practice guidance on autism was. [48011] spectrum disorders (2002) as this has been superseded by the web-based 2010 in-service training materials on Tim Loughton: The Secretary of State for Education autism. We will also remove the SEN Toolkit, as it and accompanying official travelled economy class by replicates much of the existing code, and the SEN train, and a car provided by the Government Car Despatch Governors’ Guide video which is now out of date in Agency. Total cost for both travellers was £715.26. both content and format. Miss McIntosh: To ask the Secretary of State for Special Educational Needs Education what recent representations he has received on special needs education. [47737] Diana Johnson: To ask the Secretary of State for Education how many schools in England and Wales Sarah Teather: On 9 March, the Department published providing specialist services for students with disabilities “Support and aspiration: A new approach to special provide such services exclusively for children aged 16 to educational needs and disability”. This Green Paper 18 years. [46820] has been informed by a call for views, which received over 1,800 responses, 40% of which came from parents Sarah Teather: The information requested is not held of disabled children and children with SEN. centrally. In developing the Green Paper the Department has The latest published information on special educational also heard from a range of professionals from health, needs can be found in the “Special Educational Needs education, social care and other areas, representative in England: January 2010” Statistical First Release at: bodies, the voluntary and community sector, and children http://www.education.gov.uk/rsgateway/DB/SFR/s000939/ and young people and their families. index.shtml The Green Paper is now out for consultation until Information relating to Wales is the responsibility of 30 June. the Welsh Assembly Government. Special Educational Needs: Redditch Mr Blunkett: To ask the Secretary of State for Education with reference to his Green Paper on special Karen Lumley: To ask the Secretary of State for educational needs, which items of guidance to schools Education how many (a) special needs schools and (b) and local authorities he plans to withdraw. [47285] children attending special needs schools there are in Redditch constituency. [32240] Sarah Teather [holding answer 18 March 2011]: In the Green Paper “Support and Aspiration: A new approach Sarah Teather: At January 2010 there were two special to special educational needs and disability”, published needs schools in Redditch with a total of 185 sole and on 9 March, we announced that we will retain, but two dual registered pupils. Both schools are maintained review and update, the statutory guidance to schools special schools. 1185W Written Answers23 MARCH 2011 Written Answers 1186W

Special Educational Needs: South West Sarah Teather: Information on the number of disabled children is not currently available. Such information is Tessa Munt: To ask the Secretary of State for being collected for the first time and on a voluntary Education (1) how many children and young people at basis as part of the spring 2011 school census. Future each age up to 19 in (a) North Somerset, (b) Bath and collection and publication arrangements for data on North East Somerset, (c) Somerset, (d) the City of disability will be considered in the light of data and Bristol and (e) Dorset have a disability or a special feedback collected in response to January 2011 school educational need; [46731] census returns. (2) how many children and young people at each age Information on the number of pupils with special up to 19 in (a) North Somerset, (b) Bath and North educational needs, with and without statements, is shown East Somerset, (c) Somerset, (d) the City of Bristol in the following tables. and (e) Dorset (i) have a statement of special educational need and (ii) have a statement of special educational The Department does not collect information on need which was made at the request of a parent or who requested the statement, or the date of issue of the carer; and on what date each such statement was issued. statement. [46732]

All schools excluding independent and general hospital schools1: number of pupils2 with special educational needs (SEN) by age3,asatJanuary 2010, in North Somerset, Bath and North East Somerset, Somerset, city of Bristol and Dorset local authorities North Somerset Bath and North East Somerset Pupils with SEN Pupils with Total4 Pupils with SEN Pupils with Total4 without statements of without statements of statements SEN statements SEN Ageasat 31 August 2009: No. %5 No. %5 No. %5 No. %5 No. %5 No. %5

2 and under 6— 6— 0 0.0 6— 6— 0 0.0 0 0.0 0 0.0 3 14 3.7 0 0.0 15 3.7 12 4.1 0 0.0 10 4.1 4 149 7.0 16 0.7 165 7.7 102 6.0 22 1.3 125 7.3 5 343 15.8 19 0.9 360 16.7 214 13.3 20 1.2 235 14.6 6 416 19.8 17 0.8 435 20.6 312 18.8 42 2.5 355 21.3 7 467 22.3 18 0.9 485 23.2 369 22.4 36 2.2 405 24.6 8 417 20.5 23 1.1 440 21.6 340 20.9 47 2.9 385 23.8 9 490 22.8 31 1.4 520 24.2 369 22.3 55 3.3 425 25.6 10 474 21.7 37 1.7 510 23.4 405 24.1 50 3.0 455 27.1 11 513 22.8 63 2.8 575 25.6 337 16.1 48 2.3 385 18.4 12 443 19.8 54 2.4 495 22.2 290 13.0 76 3.4 365 16.5 13 535 23.6 58 2.6 595 26.1 270 12.6 79 3.7 350 16.3 14 646 27.5 62 2.6 710 30.1 184 8.6 81 3.8 265 12.4 15 635 27.8 43 1.9 680 29.6 214 9.7 87 3.9 300 13.6 16 80 9.4 25 2.9 105 12.3 22 2.1 26 2.5 50 4.6 17 36 5.3 22 3.2 60 8.5 19 2.2 24 2.7 45 4.9 18 6— 6— 3 6.8 5 11.4 3 6.3 9 18.8 10 25.0 19 and over 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 All pupils4 5,660 20.0 490 1.7 6,150 21.8 3,460 14.0 700 2.8 4,165 16.9

Somerset City of Bristol Pupils with SEN Pupils with Total4 Pupils with SEN Pupils with Total4 without statements of without statements of statements SEN statements SEN Ageasat 31 August 2009: No. %5 No. %5 No. %5 No. %5 No. %5 No. %5

2 and under 6— 6— 6— 6— 6— 6— 16 4.1 6— 6— 15 4.3 3 12 2.3 0 0.0 10 2.3 278 9.8 14 0.5 290 10.3 4 460 8.6 14 0.3 475 8.8 354 7.9 53 1.2 405 9.1 5 759 14.4 26 0.5 785 14.9 564 13.3 94 2.2 660 15.5 6 1,069 20.0 24 0.4 1,095 20.4 756 18.3 91 2.2 845 20.5 7 1,071 21.5 34 0.7 1,105 22.2 741 19.9 94 2.5 835 22.4 8 1,114 21.7 38 0.7 1,150 22.4 747 19.7 124 3.3 870 22.9 9 1,255 23.5 55 1.0 1,310 24.5 764 20.4 125 3.3 890 23.7 10 1,227 22.3 58 1.1 1,285 23.4 682 18.5 148 4.0 830 22.5 11 1,204 22.3 72 1.3 1,275 23.6 640 19.4 150 4.6 790 24.0 12 1,072 19.2 119 2.1 1,190 21.3 604 18.5 181 5.5 785 24.0 1187W Written Answers23 MARCH 2011 Written Answers 1188W

Somerset City of Bristol Pupils with SEN Pupils with Total4 Pupils with SEN Pupils with Total4 without statements of without statements of statements SEN statements SEN Ageasat 31 August 2009: No. %5 No. %5 No. %5 No. %5 No. %5 No. %5

13 1,055 19.9 116 2.2 1,170 22.1 510 16.8 154 5.1 665 21.9 14 990 17.8 119 2.1 1,110 20.0 520 16.7 180 5.8 700 22.5 15 1,182 20.4 130 2.2 1,310 22.6 432 14.4 144 4.8 575 19.1 16 45 4.4 33 3.2 80 7.6 66 6.7 43 4.4 110 11.1 17 26 3.2 21 2.6 45 5.8 34 4.3 27 3.5 60 7.8 18 6— 6— 17 18.1 20 20.2 6— 6— 26 20.6 30 22.2 19 and over 0 0.0 0 0.0 0 0.0 6— 6— 0 0.0 6— 6— All pupils4 12,545 18.7 875 1.3 13,420 20.0 7,710 15.8 1,650 3.4 9,360 19.2

Sarah Teather: The Secretary of State for Education Dorset and Ministers within the Department participate in a Pupils with Pupils with Total4 SEN without statements of range of volunteering activities. statements SEN Truancy Ageasat 31 August 2009: No. %5 No. %5 No. %5 Chris Ruane: To ask the Secretary of State for Education what assessment he has made of the position of England 2and 0 0.0 6— 6— 6— 6— under in international comparator rates for truancy. [48485] 3 9 4.2 4 1.9 15 6.1 4 373 9.9 35 0.9 410 10.8 Mr Gibb: The Department for Education has not 5 703 18.6 50 1.3 755 20.0 assessed the position of England in international comparator rates for truancy. 6 797 21.2 57 1.5 855 22.7 7 972 26.1 72 1.9 1,045 28.0 Written Questions: Government Responses 8 959 25.6 71 1.9 1,030 27.5 9 999 25.4 99 2.5 1,100 27.9 Caroline Lucas: To ask the Secretary of State for 10 977 23.8 100 2.4 1,075 26.2 Education when he plans to answer Question (a) (i) 11 1,041 22.1 138 2.9 1,180 25.0 28050 and (ii) 28051, tabled on 29 November 2010 and 12 933 20.1 145 3.1 1,080 23.2 (b) 28761, tabled on 1 December 2010, on school 13 887 20.3 113 2.6 1,000 22.9 sports partnerships. [32362] 14 802 18.6 149 3.5 950 22.0 15 780 17.7 150 3.4 930 21.0 Tim Loughton: Responses to the hon. Member’s questions 16 163 6.7 40 1.7 205 8.4 were answered as follows: 17 93 4.8 20 1.0 115 5.8 PQ 28050: 12 January 2011, Official Report, column 344W 18 10 5.1 24 12.2 35 17.3 PQ 28051: 22 March 2011, Official Report, column 1046W 19 and 0 0.0 0 0.0 0 0.0 over PQ 28761: 13 January 2011, Official Report, column 449W All pupils4 10,500 19.4 1,270 2.3 11,765 21.8 1 Includes maintained and direct grant nursery schools, maintained primary schools, maintained secondary schools, academies, city technology colleges, pupil referral units, maintained and non- WOMEN AND EQUALITIES maintained special schools. 2 Includes sole registrations. In pupil referral units, includes pupils Civil Partnerships registered with other providers and at further education colleges. 3 Age as at 31 August 2009. 4 Totals have been rounded to the nearest five. Guto Bebb: To ask the Minister for Women and 5 The number of pupils by type of SEN expressed as a percentage of Equalities what plans she has to bring forward legislative all pupils of the same age. proposals to enable civil partnerships to take place in 6 One or two pupils, or a percentage based on one or two pupils. religious settings; whether she plans to undertake a Source: consultation on this issue; and if she will make a statement. School Census. [43156]

Third Sector Lynne Featherstone: We announced on 17 February 2011 our intention to remove the ban in England and Wales on civil partnership registrations being held on Chris Ruane: To ask the Secretary of State for Education religious premises by implementing section 202 of the whether (a) he and (b) Ministers in his Department Equality Act 2010. As section 202 is a permissive provision, are participating in volunteering activities as part of his religious organisations who do not wish to host civil Department’s involvement in the big society initiative. partnership registrations will not be required to do so as [42661] a result of this change. 1189W Written Answers23 MARCH 2011 Written Answers 1190W

In the spring we will launch a consultation on proposals Foreign and Commonwealth Office for how civil partnership registrations may be held on Department of Education religious premises. Department for Business, Innovation and Skills Stress Home Office.

Chris Ruane: To ask the Minister for Women and Equalities what arrangements are in place in her ENERGY AND CLIMATE CHANGE Department to (a) reduce levels of work-based stress and (b) provide assistance to staff diagnosed with such Departmental Plants stress. [48193] Luciana Berger: To ask the Secretary of State for Lynne Featherstone: The Government Equalities Office Energy and Climate Change how much his Department (GEO) has sought to find efficient ways of working and has spent on indoor and outdoor plants and trees since to allocate work fairly so that stress is minimised. Care his appointment. [48431] is taken to set realistic deadlines for work and staff capability is assessed before allocating work. GEO has Gregory Barker: The Department has not spent any also developed a Well Being at Work policy. This policy money on indoor or outdoor plants since the appointment recognises the Health and Safety Commission’s stress of the Secretary of State for Energy and Climate Change, management risk factors and includes self help tools the right hon. Member for Eastleigh (Chris Huhne). designed to help alleviate stress. It also shows what Plants in my own office are grown by myself and formal support is available, through an Employee Assistance purchased at my own expense. Programme. GEO staff may also seek advice and guidance through the Occupational Health Service. Departmental Public Bodies Women Tessa Jowell: To ask the Secretary of State for Energy Fiona Mactaggart: To ask the Minister for Women and Climate Change what estimate his Department has and Equalities who attended the pre-commission on the made of the level of savings which will accrue from the Status of Women briefing organised by the Government abolition of the UK Chemical Weapons Convention Equalities Office in January 2011; and which organisations National Authority Advisory Committee. [48706] they represented. [48531] Charles Hendry: It is estimated by the Department Lynne Featherstone: There were 40 attendees at the that the abolition of the UK Chemical Weapons Convention pre-UN Commission on the Status of Women (CSW) National Authority Advisory Committee (NAAC) will 55th Session briefing organised by the Government result in an annual saving of approximately £1,800. Equalities Office. The following list gives the UK non- Departmental Stationary governmental organisations (NGOs) and the other Government Departments (OGDs) represented. Luciana Berger: To ask the Secretary of State for NGOs represented Energy and Climate Change what proportion of his National Alliance of Women’s Organisations (NAWO) departmental stationery comes from recycled or sustainable Widows for Peace through Democracy sources. [48329] Soroptimist International Widows Rights International Gregory Barker: For the period January to December 2010 the Department of Energy and Climate Change UN Women UK purchased 35% of its total stationery requirements (paper International Council of Jewish Women and non-paper) from recycled or sustainable sources. In National Council of Women Great Britain addition 100% of paper supplied to the Department is Baha’i International either recycled or is sourced from managed forests. Northern Ireland Women Electricity: Meters European Platform Engender Kate Green: To ask the Secretary of State for Energy Scottish Women’s Convention and Climate Change what criteria his Department UK Resource Centre for Science, Engineering and Technology plans to use to assess the costs and benefits of the International Federation of University Women roll-out of smart meters. [47634] World Association of Girl Guides and Girls Scouts International Federation of Business and Professional Women Charles Hendry: The Department has published impact UNAMINA assessments setting out the expected costs and benefits Gender Users Statistics Group of the roll-out of smart meters. Costs and benefits have The Haven, Wolverhampton been assessed in line with the HMT Green Book, which sets out the core principles on which all public sector Womankind International economic assessment should be appraised. Trades Union Congress Costs and benefits are quantified where possible and UNA UK assessed against a base case scenario which assumes OGDs represented that there is no substantive roll-out of smart meters. Department for International Development Costs and benefits are also adjusted to account for the 1191W Written Answers23 MARCH 2011 Written Answers 1192W timing of their incidence by discounting them, and for helpful to local planning authorities and local communities any risk and optimism bias. The impacts of changes in in drawing up local and neighbourhood plans. It will be key variables such as energy prices are also considered. for local planning authorities and communities to decide The latest impact assessments were published in July how best to use the findings of the studies to inform 2010 and may be accessed via the DECC smart meters their development plans and to maximise opportunities website at: for the deployment of renewable and low carbon energy in their areas. http://www.decc.gov.uk/en/content/cms/consultations/ smart_mtr_imp/smart_mtr_imp.aspx DECC has not made an assessment of offshore wind potential in the south-west. However, in January 2010, Renewable Energy: British Overseas Territories the Crown Estate leased the Bristol Channel Round 3 offshore wind Zone 8 to RWE Npower Renewables, the UK subsidiary of RWE Innogy. The target capacity for Andrew Rosindell: To ask the Secretary of State for this zone is 1.5 GW.The total Bristol Channel zone area Energy and Climate Change how much his Department is 950 km2. has spent on (a) solar energy and (b) tidal energy projects in British Overseas Territories in each of the Following the award of the zone, RWE Npower renewables announced their intention to develop a 1.5 GW last three years. [48037] wind farm called ‘Atlantic Array’ within the zone. The site extends over 492 km2 and is 14 km from the north Gregory Barker: DECC has not spent any money on Devon coast and 18 km from the south Wales coast at solar energy or tidal energy projects in British Overseas its closest point. Territories in any of the last three years. The Element Energy report on ‘The Growth Potential Renewable Energy: Heating for Microgeneration in England, Wales and Scotland’ provides an overall picture of the current and potential future level of demand for microgeneration, including Mr Robin Walker: To ask the Secretary of State for solar power. It includes regional specific information. Energy and Climate Change what estimate his Further information is available at: Department made of the number of properties which http://www.decc.gov.uk/publications/Default. would be affected by roll-out of the planned Renewable aspx?term=potential%20of%20microgeneration%20 Heat Incentive before the recent announcement of its teclinolsies&tags=&urn=&fromDate=&toDate=&alpha revision; and what estimate it has made of the number of households which will be affected by the new Third Sector scheme. [48245] Chris Ruane: To ask the Secretary of State for Energy Gregory Barker: The Renewable Heat Premium Payment and Climate Change how much his Department will provide support of £15 million in 2011-12 for up to provided to each charity it funds in each year since its 25,000 domestic renewable heat installations. This will inception; and how much he has allocated for funding be followed by the introduction of RHI tariffs for to each such charity in each of the next five years. domestic installations in 2012. However, while we expect this number to grow substantially, we cannot yet give [48291] estimates for numbers of domestic installations supported under the RHI tariffs as we have not determined tariff Gregory Barker: The Department of Energy and levels and other issues around its operation. A consultation Climate Change does not set aside a specific amount for on these details is planned for later in 2011. charities and voluntary organisations. However, charities and voluntary organisations have been and continue to Renewable Energy: South West be able to apply, via our delivery partners, for grant funding under certain DECC low carbon schemes. Dr Wollaston: To ask the Secretary of State for Energy and Climate Change what assessment his (a) Department has made of the potential for tidal HEALTH power, (b) wind power and (c) solar power in renewable energy projects in (i) Totnes constituency, (ii) South Devon and (iii) the South West. [47598] Accident and Emergency Departments: Standards

Gregory Barker: The Department assessed the potential Mr Bradshaw: To ask the Secretary of State for development of marine energy projects in England and Health how many hospital accident and emergency Wales as part of the development of the Second Offshore departments in each strategic health authority did not Energy Strategic Environmental Assessment (SEA) scoping meet the target of treating 98 per cent. of patients report. The SEA Environmental report has just been within four hours in each of the last six quarters in published and is now open for consultation. The SEA which the target was applied. [48295] should pave the way for future leasing rounds for marine (wave and tidal) energy in English waters. Mr Simon Burns: The information shown in the The Department has funded renewable and low carbon following table is the number of organisations in each energy opportunity assessment studies covering some strategic health authority (SHA) that did not meet the onshore renewable technologies in England, including target of treating 98% of patients within four hours in for the south-west. We believe that the studies will be each of the last six quarters for which the target applied. 1193W Written Answers23 MARCH 2011 Written Answers 1194W

Number of Number of organisations organisations Number of not meeting the Number of not meeting the SHA name Quarter organisations 98% target SHA name Quarter organisations 98% target

North East 2009-10 Q3 8 1 South East 2010-11 Q1 12 3 North East 2009-10 Q2 8 1 Coast North East 2009-10 Q1 8 0 South East 2009-10 Q4 12 4 Coast North East 2008-09 Q4 8 0 South East 2009-10 Q3 12 3 Coast North West 2010-11 Q1 25 4 South East 2009-10 Q2 12 1 North West 2009-10 Q4 25 7 Coast North West 2009-10 Q3 25 14 South East 2009-10 Q1 12 0 Coast North West 2009-10 Q2 25 5 South East 2008-09 Q4 13 6 North West 2009-10 Q1 25 3 Coast North West 2008-09 Q4 25 12

South Central 2010-11 Q1 10 1 Yorkshire and 2010-11 Q1 15 3 South Central 2009-10 Q4 10 5 the Humber South Central 2009-10 Q3 10 7 Yorkshire and 2009-10 Q4 15 2 the Humber South Central 2009-10 Q2 10 2 Yorkshire and 2009-10 Q3 15 5 South Central 2009-10 Q1 10 2 the Humber South Central 2008-09 Q4 10 5 Yorkshire and 2009-10 Q2 15 0 the Humber South West 2010-11 Q1 17 1 Yorkshire and 2009-10 Q1 15 2 the Humber South West 2009-10 Q4 17 8 South West 2009-10 Q3 17 6 Yorkshire and 2008-09 Q4 15 4 the Humber South West 2009-10 Q2 17 1 South West 2009-10 Q1 17 1 South West 2008-09 Q4 17 9 East Midlands 2010-11 Q1 8 4 Notes: East Midlands 2009-10 Q4 8 4 1. From Q1 2010-11, the calculation of accident and emergency (A and E) East Midlands 2009-10 Q3 8 6 performance changed. Prior to 2010-11, the calculation identified the East Midlands 2009-10 Q2 8 0 proportion of breaches with respect to all A and E attendances, irrespective of whether the time spent in A and E was known. The new calculation uses the East Midlands 2009-10 Q1 8 1 breaches as a proportion of total attendances for which the time spent in A East Midlands 2008-09 Q4 8 4 and E is known. Any attendances for which the time spent in A and E is unknown are excluded from the total attendances for the purpose of this calculation. West 2010-11 Q1 16 7 2. Figures shown include all acute trusts in England. Percentage figures Midlands calculated including activity at partner primary care trusts or independent sector providers. West 2009-10 Q4 16 10 Source: Midlands Unify2 data collection: QMAE. West 2009-10 Q3 16 11 Midlands Mr Bradshaw: To ask the Secretary of State for West 2009-10 Q2 16 3 Midlands Health how many hospital accident and emergency West 2009-10 Q1 16 2 departments in each strategic health authority have met Midlands the target to treat 95%. of patients within four hours in West 2008-09 Q4 16 8 each quarter since the target was reduced from 98%. Midlands [48298]

East of 2010-11 Q1 17 5 England Mr Simon Burns: The information shown in the following table is the number of organisations in each East of 2009-10 Q4 17 9 England strategic health authority (SHA) that met the target to East of 2009-10 Q3 17 6 treat 95% of patients within four hours in each quarter England since the target was reduced from 98%. East of 2009-10 Q2 17 0 England Number of East of 2009-10 Q1 17 1 organisations England Number of meeting the SHA name Year Quarter organisations 95% target East of 2008-09 Q4 17 10 England North East 2010-11 3 8 8 North East 2010-11 2 8 8 London 2010-11 Q1 25 4 North West 2010-11 3 25 25 London 2009-10 Q4 25 10 North West 2010-11 2 25 25 London 2009-10 Q3 25 9 Yorkshire and 2010-11 3 15 12 the Humber London 2009-10 Q2 25 0 Yorkshire and 2010-11 2 15 15 London 2009-10 Q1 25 1 the Humber London 2008-09 Q4 27 14 East Midlands 2010-11 3 8 6 East Midlands 2010-11 2 8 8 1195W Written Answers23 MARCH 2011 Written Answers 1196W

Mr Simon Burns: From the Department’s Central Number of organisations Procurement’s Database it is not possible to accurately Number of meeting the distinguish between services being provided by the SHA name Year Quarter organisations 95% target Department and to the Department. To accurately identify East Midlands 2010-11 2 8 8 services being provided by the Department, and then West Midlands 2010-11 3 16 13 whether the provider is classified as third sector or West Midlands 2010-11 2 16 15 private sector, would involve an inquiry to and search East of 2010-11 3 17 15 for every Directorate within the Department which England could be obtained only at disproportionate cost. East of 2010-11 2 17 17 England London 2010-11 3 25 23 Drugs: Misuse London 2010-11 2 25 24 South East 2010-11 3 12 8 Coast Nicola Blackwood: To ask the Secretary of State for South East 2010-11 2 12 10 Health what funding will be available for drug and Coast alcohol services after April 2011; and what bodies will South Central 2010-11 3 10 7 be responsible for such services. [47953] South Central 2010-11 2 10 10 South West 2010-11 3 17 17 South West 2010-11 2 17 17 Anne Milton: Central funding for drug treatment is Notes: currently provided to primary care trusts (PCTs) in the 1. From Q1 2010-11, the calculation of accident and emergency (A&E) form of the pooled treatment budget. £406.7 million is performance changed. Prior to 2010-11 the calculation identified the being made available for 2011-12. In addition funding proportion of breaches with respect to all A&E attendances, irrespective of whether the time spent in A&E was known. The new calculation uses the for the Drug Intervention Programme of £60 million breaches as a proportion of total attendances for which the time spent in A&E and funding of £69 million is available to national is known. Any attendances for which the time spent in A&E is unknown are health service trusts for drug treatment and interventions excluded from the total attendances for the purpose of this calculation. 2. Figures shown include all acute trusts in England. Percentage figures in adult and children and young people’s secure settings. calculated including activity at partner primary care trust or independent sector providers. Alcohol interventions and services are funded by the Source: general allocation that PCTs receive from the Department. Unify2 data collection—QMAE It is the responsibility of PCTs to assess the needs of Alcoholic Drinks their communities, to agree what to prioritise and to commission services. Luciana Berger: To ask the Secretary of State for From April 2013, drug and alcohol services will fall Health how much his Department has spent on the within the services that it is proposed will be funded by contents of Ministerial drinks cabinets since 12 May Public Health England and commissioned by local 2010. [48401] authorities as part of their new public health functions and funded from their ring-fenced public health budget. Mr Simon Burns: Nil. The Department is carrying out an exercise to determine Ambulance Services how much is currently spent on those activities that would be funded from the public health budget, including drug and alcohol services. This work will take account Fiona Mactaggart: To ask the Secretary of State for of the outcome of the on-going consultation around Health what discussions he has had with Ministerial the public health White Paper, which ends on 31 March. colleagues on arrangements to improve liaison between ambulance services and other emergency responders; what assessment he has made of the effectiveness of Epilepsy: Bexley cooperation between blue-light services; and if he will make a statement. [48149] Mr Evennett: To ask the Secretary of State for Health Mr Simon Burns: The Department of Health, along how many people in the London Borough of Bexley with the Home Office and the Department of Communities were diagnosed with epilepsy in each of the last 10 and Local Government, continues to encourage and years. [47979] support regular communication across all emergency services. While the police, fire and rescue, and NHS Paul Burstow: The information requested has never ambulance services will continue to offer vital, but very been collected. different and separate services, there are continuous discussions to identify areas where the emergency services The national Quality and Outcomes Framework (QOF) could work more closely and effectively together. records the number of people, aged 18 or over, recorded on practice disease registers who are receiving drug Departmental Contracts treatment for epilepsy. The register is not a count of patients newly diagnosed with the disease within each Tessa Jowell: To ask the Secretary of State for Health year but rather a count of patients receiving drug what estimate he has made of the change in the (a) treatment for epilepsy on a specific day within the year. volume and (b) monetary value of services provided These data are available for the releases of QOF covering by his Department which have been contracted out to financial years 2005-06 through to 2009-10 at: (i) the third sector and (ii) the private sector between www.ic.nhs.uk/statistics-and-data-collections/audits-and- January 2005 and December 2010. [48163] performance/the-quality-and-outcomes-framework 1197W Written Answers23 MARCH 2011 Written Answers 1198W

Genito-urinary Medicine Organisation 2009-10 (£) Mr Stewart Jackson: To ask the Secretary of State Bradford and Airedale PCT 1,725 for Health pursuant to the answer to the hon. Member All PCTs in Yorkshire and the 1,643 for Brighton, Kemptown of 16 February 2011, Official Humber SHA economy area Report, column 860W, on genito-urinary medicine, on Note: “The level of spending” has been interpreted as the total revenue what date he plans to publish a new sexual health expenditure of the PCTs (the net operating costs). strategy. [48175] Source: The net operating cost is taken from the audited summarisation Anne Milton: No decisions have yet been taken on schedules of PCTs for 2009-10. This figure is divided by the PCTs’ what date this year the document on sexual health will resident population to derive the spend per head figure. be published. Hospitals: Waiting Lists Health Services: Yorkshire and the Humber Mr Bradshaw: To ask the Secretary of State for Health how many patients (a) in each primary care Julian Smith: To ask the Secretary of State for Health trust area in the South West and (b) in each strategic what the level of spending per head of population was health authority area were not treated within 18 weeks in the (a) North Yorkshire and York Primary Care of referral in each quarter since January 2009. [48302] Trust area, (b) Bradford and Airedale Primary Care Trust area and (c) area covered by the Yorkshire and Mr Simon Burns: The Department collects and publishes Humber Strategic Health Authority in the latest period monthly referral to treatment data which are used to for which figures are available. [47902] monitor national health service waiting times. These data include information on how many patients waited Mr Simon Burns: The level of spending per head of more than 18 weeks before starting treatment. The population in 2009-10, the most recent financial year Department does not collect information on the reasons for which figures are available, by North Yorkshire and why patients waited longer than 18 weeks but these will York Primary Care Trust (PCT), Bradford and Airedale include those patients who chose to wait longer for PCT and the sum of the constituent PCTs in the Yorkshire personal or social reasons, for example to work around and the Humber Strategic Health Authority (SHA) family or work commitments, or where waiting longer patch are shown in the following table: was clinically appropriate. For these reasons, there will always be a number of patients who are not treated Organisation 2009-10 (£) within 18 weeks of referral. North Yorkshire and York PCT 1,475 This information is contained in the following tables:

Number of admitted (adjusted) patients in each primary care trust (PCT) area in the South West not treated within 18 weeks of referral per quarter since January 2009 PCT Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 code PCT name 2008-09 2009-10 2009-10 2009-10 2009-10 2010-11 2010-11 2010-11

5FL Bath and North East 198 242 224 310 672 510 263 416 Somerset PCT 5QN Bournemouth and 374 235 215 309 343 245 268 320 Poole Teaching PCT 5QJ Bristol PCT 555 675 694 764 819 554 442 476 5QP Cornwall and Isles of 857 489 635 1,290 677 627 1,211 1,899 Scilly PCT 5QQ Devon PCT 1,150 1,047 1,009 980 1,160 860 598 666 5QM Dorset PCT 473 344 375 610 910 609 443 682 5QH Gloucestershire PCT 847 815 731 807 867 795 764 1,023 5M8 North Somerset PCT 263 275 323 372 345 304 226 271 5F1 Plymouth Teaching 310 247 239 220 298 203 207 232 PCT 5QL Somerset PCT 705 745 885 1,482 1,500 1,354 766 693 5A3 South 234 281 307 365 378 265 189 225 Gloucestershire PCT 5K3 Swindon PCT 37 66 136 227 195 122 141 197 TAL Torbay Care Trust 105 106 157 142 160 206 121 78 50K Wiltshire PCT 520 488 407 504 788 668 482 613

Number of non-admitted patients in each primary care trust area in the South West not treated within 18 weeks of referral per quarter since January 2009 PCT Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 code PCT name 2008-09 2009-10 2009-10 2009-10 2009-10 2010-11 2010-11 2010-11

5FL Bath and North East 214 152 150 150 116 86 145 253 Somerset PCT 1199W Written Answers23 MARCH 2011 Written Answers 1200W

Number of non-admitted patients in each primary care trust area in the South West not treated within 18 weeks of referral per quarter since January 2009 PCT Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 code PCT name 2008-09 2009-10 2009-10 2009-10 2009-10 2010-11 2010-11 2010-11

5QN Bournemouth And 180 138 160 140 178 109 124 124 Poole Teaching PCT 5QJ Bristol PCT 424 368 376 424 511 351 249 275 5QP Cornwall and Isles of 516 433 494 398 505 439 585 629 Scilly PCT 5QQ Devon PCT 718 613 694 655 666 529 542 533 5QM Dorset PCT 258 246 275 324 377 300 266 276 5QH Gloucestershire PCT 702 479 534 571 494 662 699 594 5M8 North Somerset PCT 193 130 189 149 128 121 101 136 5F1 Plymouth Teaching 242 203 193 232 266 289 351 330 PCT 5QL Somerset PCT 323 330 403 466 560 505 470 426 5A3 South 172 113 118 138 247 165 107 125 Gloucestershire PCT 5K3 Swindon PCT 87 186 323 245 247 171 164 193 TAL Torbay Care Trust 201 153 115 188 154 131 134 189 5QK Wiltshire PCT 481 419 352 346 316 269 330 484

Number of admitted (adjusted) patients in each strategic health authority (SHA) area not treated within 18 weeks of referral per quarter since January 2009 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 SHA name 2008-09 2009-10 2009-10 2009-10 2009-10 2010-11 2010-11 2010-11

East Midlands SHA 4,342 3,398 3,587 4,191 4,860 4,245 4,243 4,892 East of England SHA 7,624 7,709 7,472 7,123 - 9,332 8,530 8,559 7,712 London SHA 7,818 6,897 8,462 8,217 7,797 7,592 7,678 7,811 North East SHA 3,078 2,961 2,814 2,468 2,674 2,173 2,116 2,419 North West SHA 10,469 9,261 9,714 10,265 11,221 7,977 8,143 10,023 South Central SHA 4,670 4,355 4,595 5,428 6,935 7,637 7,647 6,932 South East Coast 5,974 5,319 5,449 5,315 7,623 7,546 6,180 6,522 SHA South West SHA 6,628 6,055 6,337 8,382 9,112 7,322 6,121 7,791 West Midlands SHA 6,047 5,309 5,582 6,307 6,759 5,583 6,208 7,113 Yorkshire and the 6,946 6,015 5,907 6,511 6,776 7,271 7,313 7,864 Humber SHA National 20000010 Commissioning Group

Number of non-admitted patients in each strategic health authority (SHA) area not treated within 18 weeks of referral per quarter since January 2009 Q4 Q1 Q3 Q4 Q1 Q2 Q3 SHA name 2008-09 2009-10 Q2 2009-10 2009-10 2009-10 2010-11 2010-11 2010-11

East Midlands SHA 3,884 3,425 3,339 3,582 3,449 2,942 3,654 3,985 East of England SHA 6,822 6,782 6,649 6,619 6,481 5,369 5,713 6,002 London SHA 10,983 10,557 12,323 9,944 8,703 8,106 9,251 9,469 North East SHA 3,189 3,178 3,158 2,530 2,253 2,204 2,628 2,840 North West SHA 11,849 10,845 10,974 10,432 9,929 7,639 8,611 10,790 South Central SHA 3,970 3,616 4,809 4,124 3,795 3,562 3,123 4,234 South East Coast SHA 6,214 5,875 5,495 5,838 7,410 6,195 6,451 6,470 South West SHA 4,711 3,963 4,376 4,426 4,765 4,127 4,267 4,567 West Midlands SHA 7,452 7,058 6,497 6,203 5,583 4,537 5,775 6,233 Yorkshire and the Humber 6,975 5,681 5,098 5,231 5,542 5,404 6,378 6,659 SHA National Commissioning 0 1 8 1345144 2 Group

Lung Cancer Paul Burstow: On 20 December 2010, we published “The NHS Outcomes Framework 2011/12”, which will Charlotte Leslie: To ask the Secretary of State for measure the overall progress of the national health Health what plans he has to develop outcome measures service in delivering better health outcomes for patients. for lung cancer treatment. [48052] 1201W Written Answers23 MARCH 2011 Written Answers 1202W

The first NHS Outcomes Framework contains outcomes Table 1: Basic pay and total earnings for non medical staff groups, for cancer including ‘one-year and five-year survival English NHS, 2008-10 rates for lung cancer’. Full-time equivalent2 1 In addition, we have published “Improving Outcomes Basic salary 2008 2009 2010 —A Strategy for Cancer”, which sets out a range of £60,000- 3,657 1,586 1,623 measures to improve outcomes for all cancer patients, £65,000 including those with lung cancer. Backed by more than £65,000- 1,333 3,724 5,704 £750 million over the next four years, the strategy sets £70,000 out our plans to improve earlier diagnosis, access to £70,000- 692 649 831 screening and treatment, and patients’ experience of £75,000 care. £75,000- 1,109 2,142 797 Copies of both publications have been placed in the £80,000 Library. £80,000- 189 276 2,116 £85,000 NHS: Manpower £85,000- 144 173 254 £90,000 Simon Hart: To ask the Secretary of State for Health £90,000- 149 155 174 how many non-medical staff in each (a) salary range £95,000 3 and (b) category of employment the NHS employed in £95,000- — 291 444 £100,000 each year since 2008. [47812] £100,000+ 15 23 28 1 Mr Simon Burns: The full-time equivalent (FTE) Mean basic salary is calculated by dividing the total amount of annualised basic pay earned by staff by the total worked FTE for number of non-medical staff employed by the national those staff m the period specified. health service in England in each £5,000 basic pay band 2 Calculated as mean basic salary, but for all earnings. This includes for the period April to June for the years 2008, 2009 and basic salary, plus hours related pay. overtime, occupation payments, 2010 is shown in table 1. location payments and other payments including redundancy pay or payment of notice periods. The numbers of non-medical staff in each staff group 3 Indicates that the number is less than 10 so the data are obscured in employed by the NHS in England for 2008 and 2009 are line with the Data Protection Act. shown in table 2. The figures are taken from the annual Notes: NHS work force census of NHS staff in England at 1. These figures represent payments made using the Electronic Staff 30 September each year. Record to NHS staff who are on Agenda for Change pay scales. 2. Figures based on data from all NHS organisations who are using The data in the two tables are not comparable because ESR (two foundation trusts have not taken up ESR). pay band data are extracted from the payroll dimension 3. Earnings data are extracted from the payroll dimension of ESR of the Electronic Staff Record (ESR) and include only and undergoes a different data manipulation process to NHS census data. As such, staff numbers in this report will not match those in the staff who are on Agenda for Change terms and conditions NHS Census. so, for example, 114,000 general practitioner (GP) practice Source: staff are not included. As such, staff numbers in this Information Centre for Health and Social Care NHS Staff Earnings report will not match those in the NHS work force Estimates. April to July 2008, 2009 and 2010—processed using data census which covers all staff employed by the NHS in taken from the Electronic Staff Record Data Warehouse. England. Data on staff groups in table 2 are extracted from the annual NHS work force census. As noted Table 2: NHS hospital and community health service (HCHS) and above these figures will not match those derived from general practice work force England the earnings process. Headcount As at 30 September 2008 2009 Table 1: Basic pay and total earnings for non medical staff groups, English NHS, 2008-10 Total HCHS non-medical staff 1,120,548 1,176,831 Full-time equivalent2 1 Basic salary 2008 2009 2010 Total qualified nursing staff2 408,160 417,164 £10,000- 148,267 104,831 86,096 Qualified nursing, midwifery and health 346,377 353,570 £15,000 visiting staff £15,000- 186,404 215,802 241,289 Bank nursing, midwifery and health 39,735 41,659 £20,000 visiting staff 1, 3 £20,000- 173,293 189,267 162,543 GP practice nurses 22,048 21,935 £25,000 £25,000- 119,198 134,035 157,609 Total qualified scientific, therapeutic 142,558 149,596 £30,000 and technical staff4 £30,000- 107,050 98,930 109,805 Qualified Allied Health Professions 71,301 73,953 £35,000 Other qualified scientific, therapeutic 71,257 75,643 £35,000- 40,051 67,009 44,542 and technical staff £40,000

£40,000- 17,789 16,764 51,727 5 £45,000 Qualified ambulance staff 17,451 17,922 £45,000- 4,939 14,237 20,774 £50,000 Support to clinical staff 355,010 377,617 £50,000- 8,571 10,479 5,667 Support to doctors and nursing staff 266,070 278,390 £55,000 £55,000- 1,403 3,033 8,319 Bank support to doctors and nursing 20,184 25,034 £60,000 staff 1203W Written Answers23 MARCH 2011 Written Answers 1204W

Table 2: NHS hospital and community health service (HCHS) and Jason McCartney: To ask the Secretary of State for general practice work force England Health what arrangements are in place in the NHS to Headcount support charities concerned with childhood obesity. As at 30 September 2008 2009 [47964] Support to scientific, therapeutic and 55,689 59,831 technical staff Anne Milton: It is for primary care trusts to commission Support to ambulance staff 13,067 14,362 services to meet the health care needs of their local populations, taking account of local and national priorities. NHS infrastructure support 219,064 236,103 The Department administers the Innovation, Excellence Central functions 105,354 115,818 and Service Development Fund. This scheme provides Hotel, property and estates 73,797 75,624 charities with funding to support projects in the health Manager and senior manager 39,913 44,661 and social care field. Organisations are asked to align their proposals with one or more of the cross cutting Other non-medical staff or those with 353 364 themes set out by the Department. unknown classification Chris Ruane: To ask the Secretary of State for Health Other GP practice staff1 92,436 92,333 what estimate his Department has made of the proportion 1 GP data as at 1 October 1999 and 30 September 2000-09 of (a) men and (b) women in each socio-economic 2 Nursing and midwifery figures exclude students on training courses decile who are (i) overweight and (ii) obese. [48191] leading to a first qualification as a nurse or midwife. 3 Headcount practice nurse figures are estimated for 1999 based on the 1997 FTE to headcount ratio. Anne Milton: Information is not available in the 4 To make the census data comparable with the Review Body for format requested. We do not hold information on socio- Nursing Staff and Other Health Professionals definitions, qualified economic deciles. Allied Health Professionals (AHPs) now include speech and language therapists (previously these were included in other qualified ST and T Information on the percentage of overweight and staff). For comparability historical data has been reassigned to match obese men and women, aged 16 and over, by equivalised the revised definition. The numbers of AHPs will not match those household income quintiles in England in 2009, is included published in previous years. in table 7.3 of the ‘Health Survey for England—2009: 5 In 2006 ambulance staff were collected under new, more detailed, Health and lifestyles’ report. This information is available occupation codes. As a result, qualified totals and support to ambulance on the NHS Information Centre’s website at: staff totals are not directly comparable with previous years. Source: www.ic.nhs.uk/pubs/hse09report The NHS Information Centre. This publication has been placed in the Library.

Obesity Parents: Advisory Services

Jason McCartney: To ask the Secretary of State for Chris Ruane: To ask the Secretary of State for Health Health what estimate he has made of the proportion of what help and support the NHS offers couples considering NHS funding to treat morbid obesity which is provided parenthood. [48464] for (a) medical solutions and (b) holistic approaches. [47962] Anne Milton: The NHS Choices website: www.nhs.uk Anne Milton: None. It is up to primary care trusts to publishes a wide range of information for people commission a range of healthcare services for their considering parenthood including preconceptual care, population, based on clinical need and effectiveness. planning for a healthy pregnancy and choosing the best options for maternity care. Jason McCartney: To ask the Secretary of State for Health what steps the NHS is taking to enable obese individuals to take control of their own weight loss Surgery management. [47963] Charlotte Leslie: To ask the Secretary of State for Anne Milton: It is up to primary care trusts to commission Health (1) what plans he has to support professional a range of health care services for their population, societies in surgery and medicine in the development of based on clinical need and effectiveness. surgical audits and patient outcome data; [48050] The National Institute for Health and Clinical Excellence (2) if he will take steps to ensure that guidelines of has set ‘Guidance on the prevention, identification, the European Society for Cardiothoracic Surgery on assessment and management of overweight and obesity when patients with multi-vessel coronary artery disease in adults and children’, available at: should be recommended for coronary artery surgery or a percutaneous coronary intervention are implemented www.nice.org.uk/CG43 in the NHS. [48051] This guidance sets out clinical and public health recommendations for the prevention and management Mr Simon Burns: In recognition of the role audit of overweight and obesity, including different services plays in driving up quality and delivering improved that can help individuals to manage their weight. outcomes for patients the NHS White Paper commits 1205W Written Answers23 MARCH 2011 Written Answers 1206W the Coalition to extending clinical audit to more conditions Health and Clinical Excellence Quality Standards and and a wider range of interventions. where significant improvements in health outcomes might In 2011-12 the Department will make another be achievable. £1.2 million available for up to four new national clinical The Department is working with the professional audits. The topic selection for these new audits has societies and NHS Improvement to ensure that there is started—led by the Healthcare Quality Improvement appropriate multi-disciplinary decision making and patient Partnership. The intention is that the topics are aligned involvement in decisions about their care, as set out in to the Outcomes Framework and National Institute for the European Society for Cardiology guidelines.

ORAL ANSWERS

Wednesday 23 March 2011

Col. No. Col. No. NORTHERN IRELAND ...... 931 NORTHERN IRELAND—continued Aggregates Levy Credit Scheme...... 936 Enterprise Zone ...... 938 Air Passenger Duty ...... 934 Political Donations ...... 934 Competitiveness...... 937 Security Threat ...... 939 Corporation Tax ...... 931 Dissident Activity ...... 940 PRIME MINISTER ...... 940 Economic Situation...... 932 Engagements...... 940 WRITTEN MINISTERIAL STATEMENTS

Wednesday 23 March 2011

Col. No. Col. No. COMMUNITIES AND LOCAL GOVERNMENT.. 55WS TREASURY ...... 55WS Council Tax ...... 55WS Debt and Service Management Report 2011-12 ..... 55WS Guidance on Work Force Matters...... 56WS LEADER OF THE HOUSE ...... 57WS Private Members’ Bills (2010-12 Session) ...... 57WS PETITION

Wednesday 23 March 2011

Col. No. Col. No. CULTURE, MEDIA AND SPORT ...... 5P Proposed Sale of Zurbaran Paintings ...... 5P WRITTEN ANSWERS

Wednesday 23 March 2011

Col. No. Col. No. ATTORNEY-GENERAL ...... 1109W CABINET OFFICE—continued Departmental Procurement...... 1109W Third Sector...... 1160W Departmental Rail Travel...... 1109W Transitional Fund ...... 1161W Serious Fraud Office ...... 1109W Unemployment: Bexley...... 1161W Voluntary Work: Young People...... 1162W BUSINESS, INNOVATION AND SKILLS ...... 1114W Volunteering England: Finance...... 1162W Alcoholic Drinks...... 1114W Business Link...... 1114W COMMUNITIES AND LOCAL GOVERNMENT.. 1109W Business: Regulation ...... 1114W Affordable Housing...... 1109W Companies House: Enforcement...... 1115W Bowling: Facilities...... 1110W Dairy Products...... 1115W Community Development...... 1110W Departmental Assets...... 1115W Disabled Facilities Grants ...... 1110W Departmental Expenditure ...... 1116W First Time Buyers ...... 1111W East of England Development Agency ...... 1116W Environment Protection: Employment...... 1116W CULTURE, MEDIA AND SPORT ...... 1111W Environment Protection: Investment...... 1117W Alcoholic Drinks...... 1111W Higher Education: Finance ...... 1117W Arts Council England ...... 1111W Micro-business Regulation...... 1118W Bowling...... 1112W Northwest Regional Development Agency ...... 1118W Digital Broadcasting: North Yorkshire ...... 1112W Overseas Trade...... 1118W Humanitarian Assistance...... 1112W Professional Organisations...... 1119W Olympic Games 2012 ...... 1113W Regional Development Agencies: Finance ...... 1119W Tourism...... 1113W

CABINET OFFICE...... 1156W DEFENCE...... 1122W Average Earnings ...... 1156W Afghanistan: Peacekeeping Operations ...... 1122W Census ...... 1157W Armed Forces: Health Services ...... 1123W Charities: Finance...... 1157W Army: Military Bases...... 1123W Charity Commission: Manpower...... 1158W Departmental Disclosure of Information...... 1124W Migration...... 1159W Departmental Public Expenditure...... 1124W Col. No. Col. No. DEFENCE—continued FOREIGN AND COMMONWEALTH OFFICE— HMS Gannet ...... 1125W continued Indonesia: Foreign Relations...... 1125W Venezuela: Trade Unions ...... 1154W Nuclear Weapons...... 1125W Rescue Services: Helicopters ...... 1125W HEALTH...... 1192W Strategic Defence and Security Review ...... 1126W Accident and Emergency Departments: Third Sector...... 1127W Standards...... 1192W Alcoholic Drinks...... 1195W EDUCATION...... 1171W Ambulance Services ...... 1195W Capita ...... 1171W Departmental Contracts ...... 1195W Child Development ...... 1171W Drugs: Misuse...... 1196W Children...... 1172W Epilepsy: Bexley ...... 1196W Children: Day Care ...... 1173W Genito-urinary Medicine ...... 1197W Children: Obesity ...... 1175W Health Services: Yorkshire and the Humber...... 1197W Children: Well-being ...... 1175W Hospitals: Waiting Lists...... 1198W Drugs: Young People ...... 1177W Lung Cancer ...... 1199W Education Maintenance Allowance: Birmingham.. 1178W NHS: Manpower ...... 1201W Educational Psychology...... 1178W Obesity...... 1203W Families ...... 1178W Parents: Advisory Services ...... 1204W Free Schools: Ilford...... 1179W Surgery...... 1204W Higher Education: Sports ...... 1180W Literacy...... 1180W HOME DEPARTMENT...... 1162W Pre-school Education: Research...... 1181W Crime: Devon...... 1162W Private Education...... 1183W Detention Centres: Children ...... 1163W Schools: Transport ...... 1183W Foreign Nationals ...... 1165W Special Educational Needs...... 1183W Human Trafficking ...... 1166W Special Educational Needs: Redditch...... 1184W Immigration: Correspondence ...... 1166W Special Educational Needs: South West ...... 1185W Sexual Offences: Males ...... 1166W Third Sector...... 1187W Traffic Wardens...... 1167W Truancy...... 1188W Written Questions: Government Responses ...... 1188W INTERNATIONAL DEVELOPMENT...... 1155W Burma: Overseas Aid ...... 1155W ENERGY AND CLIMATE CHANGE ...... 1190W Charities ...... 1155W Departmental Plants ...... 1190W Turks and Caicos Islands: Nature Conservation .... 1156W Departmental Public Bodies ...... 1190W World Bank: Energy...... 1156W Departmental Stationary ...... 1190W Electricity: Meters...... 1190W Renewable Energy: British Overseas Territories ..... 1191W JUSTICE...... 1119W Renewable Energy: Heating ...... 1191W Court Orders...... 1119W Renewable Energy: South West...... 1191W Legal Advice and Assistance...... 1120W Third Sector...... 1192W Legal Services Commission: Complaints...... 1120W Prisoners: Mass Media...... 1121W ENVIRONMENT, FOOD AND RURAL Stress...... 1121W AFFAIRS...... 1106W Animal Welfare: Finance ...... 1106W NORTHERN IRELAND ...... 1105W Biodiversity...... 1107W Corporation Tax ...... 1105W Dairy Farming ...... 1107W Credit Unions: Northern Ireland ...... 1106W Departmental Public Bodies ...... 1107W Economic Situation...... 1105W Plantations: Carlisle ...... 1108W Royal Irish Regiment and Irish Guards...... 1106W Severn Estuary: Land...... 1108W TRANSPORT ...... 1137W FOREIGN AND COMMONWEALTH OFFICE..... 1147W ATOL Scheme ...... 1137W Burma: Elections ...... 1147W Brighton...... 1137W Council of Ministers ...... 1147W Cardiff-Ebbw Vale Railway Line: Electrification.... 1137W Democratic Republic of Congo: Elections ...... 1148W Departmental Billing ...... 1138W Iran: Politics and Government ...... 1148W Departmental Expenditure ...... 1138W Iran: Sanctions...... 1148W Departmental Public Bodies ...... 1141W Japan: Natural Disasters ...... 1149W Fuels: Prices...... 1141W Libya...... 1149W Highways Agency: Finance...... 1142W Libya: British Nationals Abroad...... 1149W Local Government Finance ...... 1142W Libya: Politics and Government...... 1150W Railways: Construction...... 1142W Mexico: Smuggling ...... 1150W Railways: Crime...... 1143W Middle East: Armed Conflict...... 1150W Railways: Electrification ...... 1143W Middle East: Politics and Government...... 1151W Railways: Fares ...... 1143W Palestinians: Politics and Government ...... 1151W Railways: Greater London ...... 1144W South Korea: Bears ...... 1152W Renewables Fuel Agency...... 1144W Sudan: Human Rights ...... 1152W Rescue Services: Helicopters ...... 1145W Syria...... 1152W Roads: Bedfordshire...... 1145W Syria: Nuclear Power ...... 1153W Roads: Noise...... 1146W Third Sector...... 1153W Severn River Crossing: Tolls...... 1146W Turks and Caicos Islands: Nature Conservation .... 1154W West Coast Railway Line: Rolling Stock ...... 1147W Col. No. Col. No. WALES...... 1105W WORK AND PENSIONS—continued Departmental Ministerial Policy Advisers...... 1105W Employment and Support Allowance ...... 1130W Employment Rights ...... 1130W WOMEN AND EQUALITIES...... 1188W Poverty and Social Exclusion ...... 1130W Civil Partnerships...... 1188W Remploy...... 1131W Stress...... 1189W Social Security Benefits...... 1132W Women...... 1189W Social Security Benefits: Children ...... 1133W Social Security Benefits: Pay Methods ...... 1133W WORK AND PENSIONS ...... 1127W Stress...... 1133W Alcoholic Drinks...... 1127W Unemployment: Bexley...... 1134W Autism ...... 1127W Universal Credit...... 1134W Child Support ...... 1127W Universal Credit: Equality ...... 1135W Childcare ...... 1128W Welfare State: Reform ...... 1135W Departmental Ministerial Policy Advisers...... 1129W Winter Fuel Payments...... 1135W Disability Living Allowance...... 1129W Yorkshire and the Humber...... 1136W Members who wish to have the Daily Report of the Debates forwarded to them should give notice at the Vote Office. 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CONTENTS

Wednesday 23 March 2011

Oral Answers to Questions [Col. 931] [see index inside back page] Secretary of State for Northern Ireland Prime Minister

Financial Statement [Col. 951] Statement—(Mr George Osborne)

Budget Resolutions and Economic Situation [Col. 967] Debate (First day) Debate adjourned

Petitions [Col. 1052]

Cheshunt Urgent Care Centre [Col. 1054] Debate on motion for Adjournment

Section 6 of the European Union (Amendment) Act 2008 [Col. 1063] Motion, on a deferred Division, agreed to

Westminster Hall Public Sector Funding [Col. 257WH] Steel Industry (Carbon Floor Pricing) [Col. 282WH] Pig Farming [Col. 291WH] Rural Broadband [Col. 315WH] Disability Living Allowance [Col. 325WH] Debates on motion for Adjournment

Written Ministerial Statements [Col. 55WS]

Petition [Col. 5P] Observations

Written Answers to Questions [Col. 1105W] [see index inside back page]