Wednesday Volume 542 21 March 2012 No. 283

HOUSE OF COMMONS OFFICIAL REPORT

PARLIAMENTARY DEBATES (HANSARD)

Wednesday 21 March 2012

£5·00 © Parliamentary Copyright House of Commons 2012 This publication may be reproduced under the terms of the Parliamentary Click-Use Licence, available online through The National Archives website at www.nationalarchives.gov.uk/information-management/our-services/parliamentary-licence-information.htm Enquiries to The National Archives, Kew, Richmond, Surrey TW9 4DU; e-mail: [email protected] 773 21 MARCH 2012 774

Cathy Jamieson: Recent analysis by the Office for House of Commons National Statistics revealed that half of all central Government Departments, including the Minister’s, have Wednesday 21 March 2012 actually increased staff numbers in the past six months. How does that fit with the Government’s pledge to increase localism? Is that not more central bureaucracy The House met at half-past Eleven o’clock being created?

PRAYERS Mr Letwin: The hon. Lady will be aware that, as I mentioned in my first answer, there has been a massive reduction in the headcount of the civil service as a [MR SPEAKER in the Chair] whole. Of course there have been particular cases in which particular people needed to be hired, but the broad effort we have been making has brought down Oral Answers to Questions the deficit and increased dramatically the efficiency of the civil service.

Mr Bernard Jenkin (Harwich and North Essex) (Con): CABINET OFFICE May I remind my right hon. Friend of the findings of the Public Administration Committee report, “Change The Minister for the Cabinet Office was asked— in Government”, published last autumn, which identified the reduction in resources as just one of the many Civil Service changes the Government are trying to achieve in the civil service? We await the plan for civil service reform 1. Mr Kevin Barron (Rother Valley) (Lab): If he will with great interest, because our main conclusion was undertake an impact assessment on the effect of that the Government need a plan in order to effect this changes in resource for the civil service on delivery of change. Government policy. [100937] Mr Letwin: My hon. Friend, the Chairman of the 8. Cathy Jamieson (Kilmarnock and Loudoun) (Lab/ Public Administration Committee, is absolutely right. Co-op): If he will undertake an impact assessment on My right hon. Friend the Minister for the Cabinet the effect of changes in resource for the civil service on Office and Paymaster General and I have had meetings delivery of Government policy. [100944] with the Prime Minister, the head of the civil service and the Cabinet Secretary, and under the aegis of those The Minister of State, Cabinet Office (Mr Oliver two very senior officials the review to which my hon. Letwin): Our aim is to maintain the superb quality of Friend refers is now being carried forward. There will our civil service while reducing its quantity. Under this be a strategy—much beloved of the Committee—that Government the civil service headcount has come down will emerge from that review, and once it is available from 487,000 to 435,000, which is smaller than it has Ministers will consider it and produce a plan for further been at any time since the second world war. Of course, changes in the civil service. this reduction helps to reduce the deficit, but it is also a natural consequence of our intention to reduce bureaucracy, Mr David Ruffley (Bury St Edmunds) (Con): It has improve public services and promote the big society by been reported that the outgoing director of strategy for shifting power to people on the front line. the Prime Minister, the excellent Steve Hilton, wishes to Mr Barron: A recent National Audit Office report on reduce the number of Whitehall civil servants by two cost reduction in central Government suggests that the thirds. Does the Minister agree? staffing departures revealed an unplanned and haphazard redundancy drive that has paid off 18,000 civil servants Mr Letwin: I am afraid that some wildly inaccurate since 2010, at a cost of £600 million, to save just reports have been floating around, but it is certainly £400 million. One of the report’s conclusions is: true that the review that the Cabinet Secretary and the “Few departmental systems can link costs to outputs and head of the civil service are leading on, which I mentioned impacts, making it difficult to evaluate the effect of cost changes”. in my previous answer, is looking right across the board Does the Minister agree, and what will his Department to try to work out what a modern civil service ought to do about it? look like, bearing in mind all the technology and other advantages we currently have, in order to deliver innovation, Mr Letwin: The right hon. Gentleman has a distinguished change and the delivery of policy in the most effective career, which includes at one time being Parliamentary and efficient way possible. Private Secretary to Lord Kinnock, so presumably he has some experience of figures that go completely wonky, Jon Trickett (Hemsworth) (Lab): The Minister has and the ones he is presenting give a very wonky picture. announced the closure of the Central Office of Information, What the NAO report actually revealed is that the cost which provides politically independent public information to the Departments was £600 million, the payback to from professional civil servants, and he will instead the taxpayer was over 10 to 16 months and the total locate the service in various Departments, with the savings in this spending review period alone, in net consequential inherent risk that the Government present value, will be between £750 million and £1.4 billion. information service might become politicised. We would There is a massive saving there, which he would see if he of course support any sensible measure to deliver a read the whole report. more economic service, but is not the current flood of 775 Oral Answers21 MARCH 2012 Oral Answers 776 leaks, on an industrial scale, in relation to today’s the result was bad value for money and the serious Budget a portent of the public information service’s undermining of the self-esteem of professional civil politicisation, which he is opening the door to? servants, who like being asked to do difficult things and are very good at doing them. Mr Letwin: In a word, no. The changes that are being made in the structure and character of the information Andrew Bridgen (North West Leicestershire) (Con): service are being made in order to have a modern Does my right hon. Friend agree that every Government service that can actually do the job properly. The hon. need the best possible policy advice available, and that Gentleman ought to pause before talking about sometimes it comes from within the civil service, and politicisation of the civil service, as under the previous sometimes from without? Government efforts were made on an unparalleled scale to politicise the service’s activities. By contrast, this Mr Maude: As the new Cabinet Secretary said the Government in all our information have been other day, the civil service has in the past had a monopoly extraordinarily transparent, providing data on an on policy advice, and he and others feel that it is unparalleled scale and operating a much more open something worth questioning. I am sorry that it is only Government than he and his colleagues ever dreamed the Opposition who seem to have closed minds on the of doing. issue. Jon Trickett: But that is all flim-flam, frankly. The leaking of Budget information on that scale is without Voluntary and Community Sector precedent, and it is in clear breach, Mr Speaker, of your strict admonition that such statements should take place 3. Lilian Greenwood (Nottingham South) (Lab): first in the House and not in the media. There is no way What recent discussions he has had on the types of that professional civil servants in the COI would have Government funding models available to the voluntary undertaken such leaking, so does the Minister agree and community sector. [100939] that there should be a Cabinet Office inquiry to identify the leakers? If it was civil servants, they are clearly in 13. Phil Wilson (Sedgefield) (Lab): What recent breach of their code of conduct, but, if it was Ministers, discussions he has had on the types of Government they are playing fast and loose with our democracy. funding models available to the voluntary and community sector. [100949] Mr Letwin: First, if the hon. Gentleman recalls his time as the Parliamentary Private Secretary to the previous The Parliamentary Secretary, Cabinet Office (Mr Nick Prime Minister, he will be aware that he was serving a Hurd): We want to help the voluntary and community past master at giving foretastes of Budgets. Secondly, I sector to become more resilient by developing three am surprised that the hon. Gentleman feels he knows pillars of funding: traditional giving, income from the what is or is not a leak, as he has not seen the Budget state including more opportunities to deliver public yet, and nor has the House. service and a new pillar, the emerging market of social investment. Policy Advice (Outsourcing) Lilian Greenwood: Many local voluntary organisations 2. Barbara Keeley (Worsley and Eccles South) (Lab): were set up to complement statutory services, as What recent discussions he has had with permanent Nottingham Community and Voluntary Service reminded secretaries on Government outsourcing of policy me when I met its representatives last week. If the advice. [100938] predominant funding source for the voluntary sector is now to be public sector contracts, will not thousands of The Minister for the Cabinet Office and Paymaster valuable voluntary groups throughout the country be General (Mr Francis Maude): The head of the civil left high and dry, showing once again this Government’s service has set up a number of themed groups to explore utter contempt for the big society that they purport to various aspects of civil service reform. One is exploring champion? whether outsourcing policy making could deliver more creative and innovative results, while ensuring accountability and value for money, and I met permanent secretaries Mr Hurd: I think the hon. Lady missed my point. We recently to discuss that and other issues. are developing three pillars of funding, with the encouragement of high levels of giving, including a very Barbara Keeley: The Cabinet Office spent almost generous tax incentive introduced by the Chancellor in £120,000 in one day in August last year on consultancy, the previous Budget; a new source of funding, social and McKinsey & Company is reported to have earned investment; and the launch of the world’s first social almost £14 million from Government health policy investment bank within a few weeks. But, yes, we want since the election. Outsourcing policy advice is costly to do more with the sector to help us deliver public and can lead to conflicts of interest, so will Conservative services, so, yes, we will be opening up new opportunities Ministers stick to their pledge in their manifesto to for charities and social enterprises to help us do just reduce the amount of consultancy? that.

Mr Maude: Not only will we, but we have. We have Mr Speaker: I call Phil Wilson. No? Can I simply more than halved—I stress, more than halved—the cost say— of consultancy to the taxpayer. Under the previous Government, such money was spent incontinently, and Phil Wilson rose— 777 Oral Answers21 MARCH 2012 Oral Answers 778

Mr Speaker: The hon. Gentleman is here. We are Voluntary Sector Funding grateful. Good. 4. Seema Malhotra (Feltham and Heston) (Lab/Co-op): Phil Wilson: Question 13, Mr Speaker. What assessment he has made of the change in the level of funding to the voluntary sector in 2011-12. [100940] Mr Speaker: No. The hon. Gentleman asks his supplementary question now, although it would have The Parliamentary Secretary, Cabinet Office (Mr Nick been helpful if there had been advance notification of Hurd): Most voluntary sector organisations receive no the grouping to my office, which there was not. Very public funding at all, but those that do cannot be regrettable. The Minister must do better in the future, I immune from the need to reduce public spending. That am afraid. is why we are taking active steps to help the most vulnerable organisations, to encourage more giving and social investment, and to create new opportunities to Phil Wilson: A survey commissioned by Charity Bank deliver more public services. has revealed that more than 20% of charities have suffered from the cancellation of contracts with businesses Seema Malhotra: Given that the most recent report and Government bodies in the past year. Does the by the National Council for Voluntary Organisations Minister agree that the Government’s refusal to recognise shows that, according to the Government’s own figures, the needs and benefits of charities and voluntary charities are facing cuts of £1.2 billion in public money organisations in policy formulation is preventing such per year, does the Minister agree that the Government organisations from getting vital funding to which they need to do more to support the voluntary sector in are entitled? constituencies such as mine, Feltham and Heston, as we turn around what the NCVO has described as a “toxic Mr Hurd: First, Mr Speaker, I apologise to you mix of circumstances” affecting our charities? formally for that oversight by my office. The hon. Gentleman makes an important point. Any Mr Hurd: As I have said, almost 80% of charities commissioner in the public sector needs to engage with receive no money from the state, but we have made it stakeholders in communities before commissioning clear that those that do cannot be immune from cuts. services—not least in the voluntary and community The Labour leader himself has made it clear that he sector, whose stakeholders tend to have, on the whole, a could not have protected them from cuts at all. We much better understanding of the needs of the people should remind ourselves that the cuts are necessary we are trying to help. because of the actions of the last Labour Government. This Government are taking action to protect the most vulnerable organisations, create new sources of funding Mr Speaker: I thank the Minister for his gracious and open up new opportunities for charities and social apology. enterprises to deliver public services. All they hear from the Labour party are empty words. Duncan Hames (Chippenham) (LD): Five months ago, the Prime Minister told me here that he would look Voluntary and Community Sector at the funding gap arising from changes to legal aid funding for advice services such as the citizens advice 5. Yvonne Fovargue (Makerfield) (Lab): What steps bureaux in Wiltshire. Does the Minister consider that he is taking to ensure that the community and he has yet found lasting funding arrangements to sustain voluntary sector is considered in policy formulation in that voluntary sector service in future years? all Departments. [100941]

Mr Hurd: We know that the charity advice sector is The Minister of State, Cabinet Office (Mr Oliver under a lot of pressure; that is why we found the money Letwin): Our agenda is to give community groups and for a £20 million fund to provide immediate support for other voluntary sector organisations a much wider role the most vulnerable organisations and why we are in fulfilling the demands and needs of the public than undertaking a serious review of the longer-term issues they have had in the past. That is why, in considering facing the sector. We will be announcing the findings of each of our public service reforms, we have paid particular that review later in the spring, so the hon. Gentleman attention to the question of how the voluntary and may not have to wait very long. community sector can work through them and help them. Nicky Morgan (Loughborough) (Con): Will the Minister Yvonne Fovargue: Research by the NCVO has shown join me in congratulating the work of bodies such as that Government Departments plan to cut a further Voluntary Action Leicestershire, which are advising the £444 million of funding from the voluntary and community voluntary and community sector so well in Leicestershire, sector. Does the Minister agree that that is evidence of including my constituency of Loughborough, on how the complete disregard of his own Government for that to find alternative funding models and how to do things sector? differently given the changed funding environment? Mr Letwin: Absolutely not. The hon. Lady should Mr Hurd: I am certainly happy to do that. Such look carefully at what we have done in respect of organisations play an essential role in providing support funding of advice services, to which the Parliamentary for front-line organisations. That is why we have found Secretary, my hon. Friend the Member for Ruislip, £30 million of funding to support organisations as they Northwood and Pinner (Mr Hurd), referred a moment improve those services for the front line through the or two ago. In 2010-11, the funding stood at rather less transforming local infrastructure fund. than £200 million, but in 2011-12 it went up and it has 779 Oral Answers21 MARCH 2012 Oral Answers 780 almost maintained the 2011-12 levels—still above those Mr Maude: I am delighted to say that nine of the of 2010-11—for 2012-13. The Government are investing biggest suppliers to Government have already agreed in the voluntary and community sector, not disinvesting that they will advertise on Contracts Finder their contracts in it. for sub-contract as well, and that will increase accessibility. In addition, we are taking steps to ensure that payments Mr Gregory Campbell (East Londonderry) (DUP): get made quickly not only to prime contractors but to Some examples of bureaucracy are being faced by many sub-contractors further down the supply chain. in the community and voluntary sectors. What are the [Interruption.] Government doing to try to ensure that those sectors face no undue levels of bureaucracy in delivering their services? Mr Speaker: Order. There are far too many very noisy private conversations taking place in the Chamber. Mr Letwin: The hon. Gentleman is absolutely right— That is unfair to the questioner and deeply unfair to there are major bureaucratic obstacles and regulatory Ministers, who may well be greatly wounded by the hurdles. My noble Friend Lord Hodgson has been experience. looking specifically at those, and my team and I have been looking at them as part of the red tape challenge. We are going through every single regulation that affects 11. [100947] Debbie Abrahams (Oldham East and the voluntary sector, the community sector and social Saddleworth) (Lab): The Government say that they are enterprises to see what we can do to ameliorate or committed to ensuring that 25% of all Government remove those obstacles, because we are determined to contracts will be awarded to SMEs, but official figures build the big society. and the experience of SMEs in my constituency show that the situation is getting worse. When are the Government Procurement Government going to get their act together on this?

6. Simon Hughes (Bermondsey and Old Southwark) Mr Maude: I fear that the hon. Lady wrote her (LD): How much and what proportion of Government question before hearing my answer. We cannot make a procurement was made from small and medium-sized commitment; it would be illegal to do that. We have an enterprises in the latest period for which figures are aspiration to move to 25%. The Government formed by available. [100942] the party of which the hon. Lady is a member did not even bother to measure how much of this was happening. 9. David Morris (Morecambe and Lunesdale) (Con): In the past year, we have more than doubled the amount What recent progress he has made on opening up of spend that goes directly to SMEs, but there is further public sector procurement to small and medium-sized to go and we will go that distance. enterprises. [100945]

The Minister for the Cabinet Office and Paymaster Michael Dugher (Barnsley East) (Lab): Last week, General (Mr Francis Maude) rose—[Interruption.] Mark Taylor, the co-chair of the “new suppliers to Government” panel which is advising the Minister on Mr Speaker: Order. I want to hear Minister Maude. SMEs, resigned, saying that Government contracts to SMEs were “drying up”, that things were “going Mr Maude: I am grateful, Mr Speaker. backwards”, and that SMEs were A year ago, the Prime Minister and I launched a package of radical measures to increase opportunities “finding it more difficult to do business with Government”, for small and medium-sized enterprises to supply to and accusing the Government of “recounting” their Government. One year on, central Government’s direct figures. Given that the Minister has admitted that the spend with SMEs is on track to more than double to Government are nowhere near their promised 25% target, nearly 14% since we took office. will he explain why the proportion of procurement spend going to SMEs is falling at the Department of Simon Hughes: Those are very encouraging figures. Energy and Climate Change, the Department for Culture, In order to encourage small and medium-sized firms Media and Sport, the Department for Business, Innovation and show Government transparency, will the evidence and Skills, the Department of Health, the Department behind the facts and figures be put in the public domain for Education, the Department for Transport, Her Majesty’s as soon as possible? Revenue and Customs, the Department for Environment, Food and Rural Affairs, the Department for International Mr Maude: I am delighted to tell my right hon. Development, and the Treasury? Friend that we make this information much more public and transparent than it has ever been before. The Contracts Finder website contains much more information about Mr Maude: I say to the hon. Gentleman that if tenders, contracts and successful bids than has ever Mr Mark Taylor had come to any meetings of the SME been the case, but we have more distance to go, and we panel over the past six months, he would have been will do so. more up to speed with the considerable progress that is being made. The previous Government, for whom the David Morris: I congratulate my right hon. Friend on hon. Gentleman was an adviser, cared so little about the work that he has done to help SMEs to access this matter that they did not even measure what was Government contracts, but will he now consider writing being done. We have, I repeat, more than doubled the protection for small sub-contractors into every major amount that is spent with SMEs over the past year. Government contract? That amount will continue to grow. 781 Oral Answers21 MARCH 2012 Oral Answers 782

Topical Questions right hon. Friend agree that it is disgraceful that strike action has been threatened during such a wonderful T1. [100952] Jake Berry (Rossendale and Darwen) (Con): opportunity? If he will make a statement on his departmental responsibilities. Mr Maude: It was distressing that the leader of the Unite trade union made that intemperate threat. I hope The Minister for the Cabinet Office and Paymaster that the Leader of the Opposition will take an early General (Mr Francis Maude): My responsibilities as opportunity to condemn these bully-boy paymasters, Minister for the Cabinet Office are public sector efficiency who are threatening, when the eyes of the world are on and reform, civil service issues, the industrial relations Britain, to bring the country to a standstill. strategy in the public sector, Government transparency, civil contingencies, civil society and cyber-security. T6. [100957] Chris Evans (Islwyn) (Lab/Co-op): Concerns have been raised about the role of Circle Jake Berry: National citizen service is going to become health care in the Government’s pathfinder a rite of passage for many of our constituents. Will my programme. Will the Minister clarify its role in the right hon. Friend tell me how young people in Rossendale programme? and Darwen can find out about getting involved this summer? Mr Maude: I will look at what the hon. Gentleman says and provide him with what will no doubt be a Mr Maude: Three providers are delivering more than comprehensive answer.[Interruption.] 600 places across Lancashire this year. Those providers are Catch22, The Challenge Network and Fylde Coast Several hon. Members rose— YMCA. I strongly encourage young people and their parents in Rossendale and Darwen to find out more Mr Speaker: Order. I am not altogether sure that the about the NCS through its Facebook page or the Cabinet Minister heard the question. If he did not, he was not Office’s NCS website. the only one. There is too much noise and Members are yelling even when Members from their own party are T2. [100953] Jim McGovern (Dundee West) (Lab): asking questions. A bit of order would help. What progress has been made by the commission into the West Lothian question? Many Opposition T7. [100958] John Pugh (Southport) (LD): Had we Members, and I am sure many Government Members, reached Question 10, I would have asked what recent do not want to see a two-tier system of hon. Members assessment has been made of Government policy on in Westminster. What progress has the Minister made open source software and open standards. on this matter? Will he assure Members that we will be allowed to make a contribution to the commission? Mr Maude: We are strongly in favour of using open source software wherever possible. We have established Mr Maude: I am completely confident that the members that that can cut the cost of providing digital services of the West Lothian commission will read the hon. massively, while producing better results. On a recent Gentleman’s remarks with great interest. visit to silicon valley, I and a number of colleagues found businesses that were capable of cutting those T4. [100955] Iain Stewart (Milton Keynes South) (Con): costs on a massive scale. Will my right hon. Friend tell the House when the plans to refurbish No. 70 Whitehall were approved? Helen Goodman (Bishop Auckland) (Lab): A study by the Association of Chief Executives of Voluntary Mr Maude: Those plans were approved in 2008, when Organisations has found that applications by charities the current Leader of the Opposition was Minister for for emergency help were highest in the north-east, because the Cabinet Office. It is therefore surprising that the the 20 poorest areas suffered 40 times as much reduction shadow Minister for the Cabinet Office chose recently in their funding as the 20 richest. A year ago the to mount an unprovoked attack on the decision made Minister of State, Cabinet Office, the right hon. Member by his party leader. for West Dorset (Mr Letwin), said that the voluntary sector would T3. [100954] Barbara Keeley (Worsley and Eccles South) “find that there is access to a large amount of revenue”.—[Official (Lab): Part of my constituency had a bad experience Report, 20 October 2010; Vol. 516, c. 936.] with the Big Lottery Fund, which awarded it Has he disappeared because he no longer believes that? £1 million, but then sat on the money for the best part of two years. Will the Minister give better policy Mr Maude: I deeply regret that it has been necessary direction to that body so that it does not award funding for the Government to cut spending in the way that they and then sit on it for two years? have. The reason is very simple—the Government of which the hon. Lady was a member left this country Mr Maude: I hear what the hon. Lady says and I will with the biggest budget deficit in the developed world. look into it. I am surprised to hear that that was the case. T8. [100959] Charlie Elphicke (Dover) (Con): In the past decade, small business has increased employment T5. [100956] Stuart Andrew (Pudsey) (Con): Yesterday, by 1 million and big business cut it by 1 million. Does Britain showed itself at its best. The Olympics offer us that not show that procurement for small businesses is a chance to repeat such a show to the world. Does my about not just fairness but more jobs and money? 783 Oral Answers21 MARCH 2012 Oral Answers 784

Mr Maude: My hon. Friend is completely right. That rather than in a direct combat role, that is something is why we have an aspiration to increase the direct spend that I think everyone will want to see. We can make to 25% of what the Government spend. We have already further progress on that issue at the Chicago summit more than doubled that, and we intend to go further. and make announcements later on in the year about that.

PRIME MINISTER Edward Miliband: I thank the Prime Minister for that answer, and I know he will keep the House informed of any change in the British position, and indeed of the The Prime Minister was asked— precise timetable and any evolution of it. Engagements I am sure the Prime Minister will agree that in the wake of the tragic killing of Afghan civilians last week, Q1. [100962] Mark Menzies (Fylde) (Con): If he will which we all abhor, we must carry on with our mission. list his official engagements for Wednesday 21 March. President Karzai has recommended that international troops should be confined to their main bases. The Prime Minister (Mr David Cameron): This morning, Notwithstanding the tragedy of the incident that occurred, I had meetings with ministerial colleagues and others, does the Prime Minister agree that while international and in addition to my duties in this House I shall have troops are there, they must be able to perform their role further such meetings later today. of protecting the Afghan population? Can he tell us Mark Menzies: Small business is concerned that Britain what discussions he has had with President Karzai and suffers from a sicknote culture. Does the Prime Minister his representatives about the impact that any change in agree that an example should be set from the very top, that role will have on security in Helmand, were that to and that those who throw sickies and then swan off to a happen? football match in a Rolls-Royce are setting a very bad The Prime Minister: Obviously our teams are in example indeed? permanent contact about Afghanistan, and I speak to The Prime Minister: My hon. Friend makes an important President Karzai regularly. Obviously what happened in point. We do have a problem of a sicknote culture, and I Afghanistan, with the dreadful shootings that the rogue have to report that the problem can sometimes go to the American soldier carried out, was a dreadful event, very top. The Leader of the Opposition was meant to be which must be properly prosecuted and dealt with for addressing a health rally, called a sickie, and three hours what it was: a mass murder. I know that President later was at a Hull football match. As well as his Obama takes that view very strongly. knowing the miracle cure, I think there is an important In terms of making sure that we work with the question—what was it that first attracted him to the Afghans, as I have said, the key is ensuring that we multi-millionaire owner of the Hull football club? transition in the three parts of Helmand for which we are responsible, that we hand over to Afghan troops, Edward Miliband (Doncaster North) (Lab): Following and that they are in the lead as soon as they are capable the Prime Minister’s recent trip to Washington, we now of fulfilling that task. I do not have any concerns at the know that the timetable for the withdrawal of British moment about the role of British troops—they are able and other international combat forces in Afghanistan to carry out the tasks that they are allotted. We are will be reviewed at the NATO summit in Chicago in making good progress in the three parts of Helmand. May. He has previously set out a timetable that would We will be in permanent touch with the Afghans about see combat operations for British troops cease by the that transition, but transition is a process and, as the end of 2014. Given the recent statements by the US Chancellor will explain in a moment or two, we should Defence Secretary and the French President about an try to make the most of the transition that will take accelerated timetable for their troops, can the Prime place. Minister confirm the British Government’s position going into that summit? Edward Miliband: I know that the Prime Minister agrees with me that dialogue with President Karzai and The Prime Minister: First, let me take this opportunity his representatives on the issue is very important, particularly on behalf of the whole House once again to pay tribute in the light of the comments that were made. A few days to the magnificent work that our armed forces do in ago, the Taliban decided to suspend preliminary talks Afghanistan. We had another reminder yesterday of the with the United States. Will the Prime Minister give the very high price that we have paid. House his assessment of the significance of that? Does On the programme of withdrawal, what I have said he agree that we owe it to our troops serving in Afghanistan absolutely stands, which is that we will not be in a to be much more urgently focused on the task of securing combat role in Afghanistan after 2014, nor will we have a lasting political settlement? How do the British anything like the number of troops that we have now. Government plan to play their role in getting the political We will be performing a training task, particularly process restarted? helping with the officer training academy. Between now and 2014, it is important that we have a sensible profile The Prime Minister: I thank the right hon. Gentleman for the reduction in troop numbers, which should be for that question. It is vital that we get this right. Since largely based on the conditions in the three parts of we took office—to be fair to the previous Government, Helmand province that we are still responsible for and they took this view as well—the British position has the transition that takes place. always been that we need a political settlement to ensure What I discussed with President Obama in America the best possible outcome for the people of Afghanistan. was that in 2013, if there are opportunities to change Britain has been pushing for political reconciliation and the nature of the mission and be more in a support reintegration, and I had very productive talks with 785 Oral Answers21 MARCH 2012 Oral Answers 786

President Obama last week because the American view £25,000 per person. Therefore, if the aim of policy is to is now the same; they want to support that political use the money that we have to support disabled people process. Of course, the Taliban said what they said last into work, the right hon. Lady will understand why the week. I would make this point: we are committed to review came to the decision that it did. handing over to the Afghan Government, the Afghan military and the Afghan police—and the numbers of 3. [100964] Gavin Williamson (South Staffordshire) Afghan military and police are on track—at the end of (Con): The last few weeks have seen the start of the 2014. We believe that that can happen even without a £350 million construction of Jaguar Land Rover’s new political settlement, with a satisfactory outcome for the engine plant in my constituency. Does my right hon. United Kingdom, but clearly it would be better for Friend agree that that is a sign of growing confidence everyone concerned if it was accompanied by a political and belief in British manufacturing, which is in stark settlement. The work for that, including setting up a contrast to the destruction wrought on it by the last Taliban political office in Qatar, is progressing well, and Labour Government? I believe that it is in everyone’s interest that we keep pushing that agenda. However, the Taliban should be in The Prime Minister: My hon. Friend makes an important no doubt: there are opportunities for a political settlement point. The Jaguar Land Rover news is excellent news for if they give up violence, renounce al-Qaeda and want to the west midlands and for British manufacturing and play a part in the future politics of Afghanistan, but if British car making. The good news is that what is they do not take those steps, we will continue to defeat happening in the car industry is not confined to Jaguar them on the battlefield every time they raise their head. Land Rover: Nissan, Honda and Toyota are all expanding across our country. That is very good news for British Q2. [100963] Simon Hart (Carmarthen West and South manufacturing. Pembrokeshire) (Con): I know that the Prime Minister will agree that the Association of Air Ambulances is a Huw Irranca-Davies (Ogmore) (Lab): On the bus to fantastic charity, which enjoys support across the the Commons today I foolishly revealed to a fellow House. However, a typical air ambulance branch needs passenger that I was a Member of Parliament. After to raise about £5 million a year, yet can claim gift aid some light-hearted and customary abuse, our conversation often only on about 5% of that. Will he support my turned to life, the universe and commuting. Can the efforts to make it easier for charities to get the gift aid Prime Minister tell me and the man on the Peckham that they are due? omnibus this: if that journey cost me 90p under Ken, how much did the same journey cost me today under Boris? The Prime Minister: First, I join my hon. Friend in paying tribute to the air ambulance service, which does The Prime Minister: The point I would make is that an amazing job in responding to emergencies, and saves Ken twice promised to freeze fares and twice did not many, many lives. We are providing £3 billion a year in deliver, but the difference between Boris and Ken is that tax reliefs for charities, of which gift aid makes up Boris pays his taxes and Ken does not. around £1 billion. We are increasing the amount on which charities are allowed to claim gift aid without the Jane Ellison (Battersea) (Con): On that very subject, I need for a declaration. That takes it up to £5,000, and I look forward in the Budget later to measures on tax think that that will be a significant help to great charities avoidance, but does the Prime Minister agree that people such as the one my hon. Friend mentioned. seeking high office in public life should set a better example? Ann Clwyd (Cynon Valley) (Lab): When the disability Minister came to Wales last week, she said that it was The Prime Minister: My hon. Friend makes an important for others to consider whether Remploy’s budgets should point. I note that Ken Livingstone has said that if he is be devolved to Wales. I think, when she said “others”, elected Mayor of London, he will fully pay his taxes. It she meant you, Prime Minister. The Welsh Government is not for me to hand out political advice, but my advice have already said that they are committed to supporting would be to pay them before the campaign gets going. the Remploy workers in Wales. Will the Prime Minister therefore devolve the Remploy budgets for the Welsh 5. [100966] John Cryer (Leyton and Wanstead) (Lab): factories for the next three years to ensure that all the Does the Prime Minister recognise that the factories that can have a future do have a future? introduction of regional pay would set hospital against hospital, and school against school, as the Secretary of The Prime Minister: I will look carefully at the right State for Business, Innovation and Skills has helpfully hon. Lady’s proposal, because I know it is put forward pointed out, and yet it would almost certainly push up in a constructive spirit. However, whether the decision the overall cost of public sector pay? Can the Prime is reserved or devolved, it does not mean that we do not Minister give us a guarantee or a promise today that have to take difficult decisions. The fact is that we asked introducing regional pay will bring down the overall the chief executive of Disability Rights UK to look at bill? the issue, and the outcome she proposed is supported by Mencap, Mind, Disability Wales, Sense for Deafblind The Prime Minister: The last Government introduced People and the Centre for Mental Health. The point is local pay into the Court Service. The idea of local pay this: Government funding allows for half a billion for some public services is not an alien concept, but a pounds over five years for Remploy, but even that is not perfectly sensible thing to look at. Labour Front Benchers enough to keep those factories open, because although suggested in the debate on benefits that we look at local access to work awards are around £2,900 per disabled levels of benefits, so surely the hon. Gentleman should person, the cost of each job in Remploy is around be in favour of rather than against. 787 Oral Answers21 MARCH 2012 Oral Answers 788

14. [100975] Richard Drax (South Dorset) (Con): I am Government Members say, “There is information”. There sure the Prime Minister will join me in praising the is information from the Metropolitan police, but the work of the search and rescue helicopter service reality is that the information available about what is around our country, but does he share my concern that happening around the country is very patchy. So first the loss of the Portland search and rescue helicopter in we need proper information. Secondly, I ask the Prime 2017 will threaten the lives of my constituents and Minister to nominate a Home Office Minister with the damage the integrity of the search and rescue service job of ensuring that these claims are paid. Thirdly, will on the south coast? he promise to return to the House with a clear indication of when 100% of legitimate claims will be properly The Prime Minister: I totally agree with my hon. settled? Friend that a reliable search and rescue service is vital. We have looked at keeping the Sea King helicopters, The Prime Minister: I am certainly happy to return to which is one of the things he suggested, but they would the House, as I said, putting an answer in the House of not be able to provide a service as good or as capable as Commons Library about all this information. On the a modern fleet of helicopters. That is why we are individual case that the right hon. Gentleman mentioned, planning the changes. We believe that it should provide I understand that it was a multiple claim because it was faster flying times and a more reliable service. a shop with a number of flats above it, but I accept that eight months is too long. So we will make progress on Edward Miliband: Following last year’s riots, the Prime that case. The Minister for Policing and Criminal Justice Minister came to the House and said that is taking the lead on this matter, but I have also held “we will help you repair the damage, get your businesses back up follow-up meetings myself with DCLG and the Home and running and support your communities.”—[Official Report, Office to ensure that the money is paid out. 11 August 2011; Vol. 531, c. 1053.] Last week, a report by the Metropolitan police revealed Q15. [100976] Guto Bebb (Aberconwy) (Con): The that of the claims made by the uninsured under the Prime Minister might be aware that the St Dunstan’s Riot (Damages) Act 1886, only about half had been charity, which provides support for injured servicemen, settled since last August. Does the Prime Minister agree has recently changed its name to Blind Veterans UK. that this is simply not good enough? To raise awareness of this name change, will he join me in visiting its new residential centre in Llandudno to see The Prime Minister: I agree. There have been problems at first hand the wonderful work it does in supporting under the Riot (Damages) Act, which is specifically why our veterans? we also introduced a number of extra funds run by the Department for Communities and Local Government. The Prime Minister: I always enjoy my visits to Those funds have paid out faster. It is right, in a way, to Llandudno, and perhaps I will be able to schedule one have the Riot (Damages) Act, although it is quite out of before long. I would like to put on the record my thanks date. However, it takes time to make the payments, and for the tireless and highly professional way in which the I will certainly do what I can to chase them up. charity assists service personnel who have tragically lost their sight. My hon. Friend pays it a great compliment Edward Miliband: We are eight months on from the and does his duty by explaining the change in its name, riots. The Deputy Prime Minister hosted a reception— so that people know what it is and can give it money. As [Interruption.] Government Members should listen to a country and a Government, we have a huge debt to this very important issue about the riots. At a reception pay to former service personnel. They have done last week organised by the Deputy Prime Minister, he extraordinary things on behalf of their country, and we and I met Amrit Khurmy, the owner of Ealing Green need to look after them through their lives. My right supermarket, which was razed to the ground during the hon. Friend the Chancellor will make some announcements violence on 8 August. She is still waiting to receive any about that in his Budget. compensation. Does the Prime Minister agree that, eight months on, that is just not right? Does he further Q6. [100967] Ian Lavery (Wansbeck) (Lab): The Prime agree that ultimately it is the Government’s responsibility Minister said last year that under his Government to ensure that she gets the compensation that she deserves? unemployment would fall year on year, but here we are with unemployment at a 17-year high. In my The Prime Minister: I agree with the right hon. constituency, 55.4 people are chasing every job Gentleman, and I will look into that specific case. As I vacancy. The regional growth fund has supported only said, one reason I introduced funds alongside the Riot four businesses. Why should the 515 workers in Rio (Damages) Act was to get that money out to local Tinto Alcan, the disabled workers at Remploy and authorities faster. If he likes, I will put in the Library of many others set to lose their jobs believe a single word the House of Commons a set of information about that he or the Chancellor say? what those funds did and where we have got to with that Act. I will also look into the individual case that he The Prime Minister: First, on the specific case of the mentioned. Rio Tinto plant, I know how important that is. We are working with Northumbria county council and the Edward Miliband: We are talking about people who company to do what we can to help get those people have not been helped by the money provided to local work, although I understand that Rio Tinto is still in authorities and cannot get help. Three things need to negotiations with a potential purchaser of that plant. happen to make good on this. First, as matter of urgency, What I would say to the hon. Gentleman about employment there needs to be proper information on the payments and unemployment is this. Clearly we need more jobs in made under the Riot (Damages) Act—[Interruption.] our economy, but since the election we have had more 789 Oral Answers21 MARCH 2012 Oral Answers 790 than 600,000 new jobs in the private sector. The level of side of the Chamber he has been sitting on, for very employment in the country is up by around 250,000 and many years. I will certainly discuss this issue with my there are fewer people on out-of-work benefits now right hon. Friend the Chancellor. What we are trying to than there were at the time of the election. In terms of do is look at all the mechanisms we have, whether it is what is happening in the north-east, we should also backing nursery education, introducing a pupil premium, celebrate the good news—the fact that Nissan is creating making sure the early intervention grant is going up or 2,000 jobs; the fact that Hitachi is building a new plant actually putting the money in early to try to change in County Durham; the fact that Newcastle airport is people’s life chances before it is too late. expanding; the fact that Greggs is putting more money into the north-east. We should be talking up the north-east Engagements instead of talking it down. Q8. [100969] Robert Halfon (Harlow) (Con): Is the Mr Alan Reid (Argyll and Bute) (LD): The running Prime Minister aware that Harlow has the highest aground of a cargo vessel on a small island in the business growth in the whole of the United Kingdom, Minch showed the need for the emergency coastguard thanks to a Conservative council that is open for tug that was recently withdrawn from service. Will the business and a Conservative-led Government who have Prime Minister please look into this as a matter of invested in an enterprise zone, increased apprentices urgency, with a view to getting a replacement tug in and cut taxes? Will the Prime Minister come to Harlow place before a worse incident happens? so we can show Britain how to lead the economic recovery? The Prime Minister: I know this issue is being looked into at the moment, so I am happy to write to the hon. The Prime Minister: Although I am in danger of Gentleman and give him the details. He represents being accused of watching too much television, I think island communities that can be extremely cut off, we could summarise my hon. Friend’s question by particularly during the winter months. He needs to saying, “The only way is Essex”. I know he speaks up know that those services are there, and I will write to for his county; what I would say is that I congratulate him about that. Harlow on its fantastic achievement. The Government Early Intervention want to play their part, not least with the enterprise zone in west Essex, which covers Harlow and which we Q7. [100968] Mr Graham Allen (Nottingham North) hope will create 5,000 new jobs. (Lab): Further to his letter to the hon. Member for Nottingham North of 15 August 2011, when he expects Q9. [100970] Mrs Mary Glindon (North Tyneside) the civil service to issue the full tender document (Lab): In North Tyneside more than 7,000 hard- required to set up an early intervention foundation. working families depend on working tax credits to make ends meet, yet fewer than 200 people have to pay The Prime Minister: First, let me pay tribute to the top-rate tax. Which of those groups does the Prime work the hon. Gentleman does in this area. Early Minister think needs the most support in the intervention is absolutely central to what this Government Chancellor’s Budget? are looking to achieve. That is how we are going to improve the life chances of the least well-off in our The Prime Minister: What I can tell the hon. Lady is country, and genuinely lift young people and children that we increased the child tax credit by £255 last year, out of poverty. We will base funding decisions on what which was the biggest increase in its history, and that it comes out of the first two years, but as he will know, the will go up by another £135 this year. In terms of the early intervention grant, which is a crucial piece of very richest in our country, let me reassure her that, Government funding and policy, is going to rise next after this Budget, they will be paying more in tax. year. Mr Allen: May I thank the Prime Minister and the Q10. [100971] Simon Hughes (Bermondsey and Old leaders of all parties in the Chamber for their continuing Southwark) (LD): Does the Prime Minister agree that, support for early intervention? Early intervention not as well as the Liberal Democrat priority to lift the tax only helps babies, children and young people to develop threshold to £10,000, one of the best ways of the social and emotional capability to make the best of helping—[Interruption.] themselves, but saves the country billions of pounds in the long run. Will the Prime Minister and the Chancellor Mr Speaker: Order. Mr Hughes must be heard. take this as the first representation not for today’s Budget, but for next year’s Budget? Will he consider Simon Hughes: Does the Prime Minister agree that theming next year’s Budget around early intervention, one of the best ways of helping families on low and bringing forward proposals for tax changes to stimulate medium incomes is to build more affordable housing the social finance market, which we heard about in throughout the country? Given that Labour’s legacy in earlier questions, and move 1% only of departmental London was to have 350,000 families on the waiting list, budgets from late intervention to early intervention? will he assure us that there will be more affordable housing in London and across the country? The Prime Minister: In terms of Budget submissions, that was definitely an example of early intervention. I The Prime Minister: We do want to get our housing praise the hon. Gentleman for the work that he has markets started again, including for affordable housing. done. As he knows, we will be setting up the early That is why, with the higher right-to-buy discounts, that intervention foundation, which will be funded to make money is going to go back into building affordable the arguments that he has put very effectively, whichever homes. At the same time, we are doing more to kick-start 791 Oral Answers21 MARCH 2012 Oral Answers 792 those places that have planning permission but cannot The Prime Minister: What I would say is that, as far get under way because of problems with bank and other as I can see, we have actually voted in this House of finance. That is why we are putting extra money into Commons twice on the same issue—thank you, those schemes, to make sure that that building takes Mr Speaker—and on both occasions, there was a significant place this year or next year. majority in favour of the Government’s position. I would also add that the last Government had many, John McDonnell (Hayes and Harlington) (Lab): The many opportunities to publish risk registers, and they Information Commissioner has confirmed that some of did not do it. the information used by the Consulting Association to blacklist trade unionists could only have come from the Mr Speaker: I always appreciate the Prime Minister’s police or the Security Service. When 3,000 people, mostly gratitude. celebrities, had their telephones hacked, the Government set up an inquiry under Leveson. When 3,200 trade Q12. [100973] Nick Boles (Grantham and Stamford) unionists have been blacklisted, and many have lost (Con): For 10 years or more, leading Conservatives their livelihoods, the Home Secretary simply suggests such as Lord Saatchi and Lord Tebbit have argued for that they go to the Independent Police Complaints working people and pensioners on low incomes to be Commission. Why is there one route to justice for taken out of income tax altogether. Does my right hon. celebrities, and another for working people? Friend agree that this is a thoroughly Conservative idea whose time has well and truly arrived? The Prime Minister: There is one law that has to cover everybody in this land, and if there is any accusation The Prime Minister: What I would say to my hon. of wrongdoing, that is something that the police, who Friend is that, almost uniquely, I am not going to are completely independent of the Government, can prejudge what is in the Chancellor’s Budget. However, I investigate. That is what should happen. I say that on think that we can say that it is—if you like, Mr Speaker—a the hon. Gentleman’s behalf, but he could do something kaleidoscope Budget. on everyone else’s behalf. He runs the Right to Work campaign, which is stopping young people getting work Hon. Members: More! experience places. If he cares about opportunities for young people, he will give up that left-wing organisation. Mr Speaker: I am so encouraged that the Prime Minister is using my language. Good on him! Q11. [100972] Jesse Norman (Hereford and South Herefordshire) (Con): My county of Herefordshire has Q13. [100974] Tom Greatrex (Rutherglen and Hamilton below-average household income, but public funding West) (Lab/Co-op): The Prime Minister may recall that for schools and health care in Herefordshire has been at the time of the strategic defence and security review, among the lowest in the country for a long time. Does he described it as a mistake and an error to use the my right hon. Friend share my view that that is unfair, short take-off vertical landing variant of the Joint and will he personally support measures to change the Strike Fighter. As the Ministry of Defence is about to funding formulas, to get a fair deal for my county and perform a U-turn on the decision to rescind the for other similarly affected rural areas? original decision, does he now accept and understand that the real mistake and error has been a defence review that has been inadequate and is fast unravelling? The Prime Minister: My hon. Friend will know that we are looking at the funding formula for schools. We The Prime Minister: The real mistake and error was want to try to make it simpler, so that people can see inheriting a £38 billion black hole in the defence budget. what the criteria are and why their area receives the To pay tribute to my right hon. Friend, what he wants money that it does. At the same time, we are introducing as Defence Secretary is to be the first—in a generation, the pupil premium, which will mean that parts of the frankly—to announce a balanced and funded budget country such as his, where there are quite high levels of for defence, for this year and for many years to come. deprivation in parts, will get specific funding for those That is what we are discussing. We will look at all the children who are on free school meals. That should help evidence and all the costings. As the hon. Gentleman the funding of those schools that need the money the will know, costings change in defence, but I make this most. pledge: if costs and facts change, we—unlike previous Governments—will not just plough on regardless and Debbie Abrahams (Oldham East and Saddleworth) make the wrong decisions for political reasons. (Lab): Will the Prime Minister do the honourable thing and publish the risk register, including the action that is Mr Deputy Speaker (Mr Lindsay Hoyle): Order. I needed to mitigate the risks that the Health and Social should inform the House that the Bill on today’s Order Care Bill still poses to patients? Paper is not being presented. 793 21 MARCH 2012 Financial Statement 794

Of course, Britain is not immune from those Ways and Means developments in our largest export markets, and the OBR says today that “the situation in the euro area remains a major risk to our Financial Statement forecast”. Another risk that it identifies is a Mr Deputy Speaker (Mr Lindsay Hoyle): Before I call the Chancellor of the Exchequer, it is convenient to “further spike in oil prices”, remind hon. Members that copies of the Budget resolutions and there is no doubt that the high oil price, driven both will be available in the Vote Office at the end of the by real demand and the Iranian situation, is of great Chancellor’s speech. It may also be appropriate to concern across the world. It means that the OBR’s remind hon. Members that it is not the norm to intervene overall assessment of the outlook for, and risks to, the on the Chancellor of the Exchequer or the Leader of British economy is “broadly unchanged” since last the Opposition, as was stated last year. November’s report. Despite those head winds, there are some more positive signs. The OBR expects the British economy 12.32 pm “to avoid a technical recession with positive growth in the first The Chancellor of the Exchequer (Mr George Osborne): quarter” This Budget rewards work. Britain is going to earn its of this year. The British economy has, in its words, way in the world. There is no other road to recovery. “carried a little more momentum into the new year than previously This Budget supports working families and helps those anticipated”. looking for work. It unashamedly backs business, and it is on the side of aspiration—of those who want to do Indeed, the Office for Budget Responsibility is slightly better for themselves and for their families. revising up its growth forecasts for the UK this year to 0.8%. It then forecasts 2% next year—[Interruption.] This Budget reaffirms our unwavering commitment to deal with Britain’s record debts, but because we have already taken difficult decisions this can also be a Mr Deputy Speaker (Mr Lindsay Hoyle): Order. I reforming Budget that seeks to repair the disastrous know that the House has to breathe, but we want to model of economic growth that created those debts—a hear from the Chancellor of the Exchequer, and we model that saw manufacturing almost halved as a cannot do that with too much noise on either side. share of our national economy, while the national debt doubled. Mr Osborne: The OBR forecasts 2% next year, 2.7% in This is how Britain will earn its way in the world: with 2014, and 3% in both 2015 and 2016. Its forecast far-reaching tax reform, with a simpler tax system where unemployment rate is the same as it was last autumn. It ordinary taxpayers understand what they are being to expects it to peak this year at 8.7%, before falling each pay; with a tax system that is more competitive for year to 6.3% by the end of the forecast period, but it has business than any other major economy in the world; revised down its estimate of the claimant count, which with a tax system where millions of the lowest paid are it now expects to be around 100,000 lower in each of the lifted out of tax altogether, while the tax revenues we next four years than it previously forecast, peaking at get from the wealthiest increase. 1.67 million this year, rather than the 1.8 million it Reforming tax is only part of the story. We will earn forecast in November. It forecasts 1 million more jobs in our way in the world by saying to all business, large and the economy over five years. small, “We will provide you with modern infrastructure, Inflation is expected to fall throughout the period, new growth-friendly planning rules and employment from 2.8% this year to 1.9% next year, and then 2% by laws and the kinds of schools, universities and colleges the end of the forecast period. I am today writing to the our future work force need. In return, you, British Governor of the Bank of England to reaffirm the consumer business, will have the self-confidence to invest, expand, prices index inflation target of 2%. The Government’s hire, innovate and be the best.” We earn our way in the credible and responsible fiscal policy allows the independent world if we stop being afraid to identify Britain’s strengths central Bank to pursue an activist monetary policy and reinforce them instead, backing industries such as consistent with targeting low inflation. I confirm that aerospace, energy, pharmaceuticals, creative media and the asset purchase facility will remain in place for the science—a deliberate strategy to create a more balanced coming year. national economy where financial services are strong, Employment is growing, and inflation is coming down; but are not the only string to our bow. so too is the deficit. When this Government came to Stability comes first, and the report from the Office office, the budget deficit stood at over 11%. The state for Budget Responsibility reminds us today of the risks was borrowing one in four of every single pound it to stability. Despite the welcome action by the European spent. Today, I can report that the deficit is falling and Central Bank, the impact of the sovereign debt crisis on is forecast to reach 7.6% next year. The share of national the European economy has been significant. Italy, the income taken by the state will have fallen from almost Netherlands, Belgium and others are now in recession, 48% when we took office to 43% next year. We must and Germany’s economy shrank in the last quarter. In stick to the course, so there will be no deficit-funded today’s report, the OBR is sharply revising down its giveaways today, but because we have taken difficult forecast for euro area growth this year by 0.8% to minus decisions we do not need to tighten further. Over the 0.3%. Its forecast for world economic growth is also five-year period, this is a fiscally neutral Budget. This is revised down over the next two years, by 0.2% and 0.3% achieved through a modest reduction in both taxation respectively. and spending. 795 Financial Statement21 MARCH 2012 Financial Statement 796

[Mr George Osborne] One area where Government spending is expected to be lower than planned is, as the Prime Minister just Let me turn to those fiscal forecasts. The whole indicated, Afghanistan. We were reminded again yesterday House will be pleased to know that these have improved of the sacrifice so many of our servicemen and women a little from the forecasts that I presented in November. have made. As the Prime Minister made clear with the Borrowing this year is set to come in at £126 billion— US President last week, UK forces will cease combat £1 billion lower than I forecast in the autumn, and over operations by the end of 2014. As a consequence, I can £30 billion a year lower than its peak in the year before tell the House that the cost of operations—which are we came to office. Borrowing will then fall to £120 billion funded by the Government’s special reserve and are next year, if one excludes the transfer of Royal Mail entirely separate from the Defence budget—is expected pension assets. It will fall to £98 billion in 2013-14, then to be a total of £2.4 billion lower than planned over the £75 billion, and then £52 billion, reaching £21 billion by remainder of the Parliament. Let me be clear today: 2016-17. So, in total, borrowing is £11 billion less than I the full cost of operations will continue to be met from last forecast, in the autumn, and this will be used to pay the reserve, and our brave armed forces will get the down debt. equipment they need to complete the job. In my first Budget, I set the Government the fiscal But I can ensure that some of the benefit of the lower mandate of achieving a cyclically adjusted current balance cost is felt by those who fight so hard and give so much by the end of the five-year horizon, and the OBR for our nation’s security. We will fund an extra £100 million confirmed today that we are on course to achieve that of improvements in the accommodation of our armed mandate and to have eliminated the structural current forces and their families. I will also double the families’ deficit by 2016-17. It also confirmed that we are on welfare grant, which is used to provide additional support course to reach our target for debt to be falling as a to families left behind when people deploy. We have percentage of national income by the end of the Parliament already doubled the operational allowance. Today, I am in 2015-16. Public sector net debt is now set to peak at doubling the rate of council tax: the thousands serving 76.3% in 2014-15, almost 2% lower than previously our country in operations overseas will receive 100% relief forecast, before falling the following year. With a balanced on an average council tax bill. structural current budget and falling debt, our deficit Our commitment to reduce the deficit is keeping reduction plan is on course, and we will not waiver from interest rates low. In this Budget, we take measures to it. To do so would risk a sudden loss of confidence and ensure that the benefits of those low market interest a sharp rise in interest rates, and we will not risk that. rates are felt across the economy. They are certainly Instead, we reinforce today our commitment to fiscal benefiting the taxpayer. Thanks to the reduction in the responsibility, not just this year, but in the years ahead. deficit and our low interest rates, this Government are saving a total of £36 billion in debt interest payments The transfer of the £28 billion of assets from the compared with their predecessor. This year is the Royal Mail pension fund to the Exchequer will free it 400th anniversary of the creation of the Treasury Board from its crippling pension debts, ensure the pensions of and the modern Treasury. There have been times recently hard-working staff are paid and help to bring in new, when the Treasury has been borrowing money more private sector investment. Some would have been tempted cheaply than at any previous time in that 400-year to spend the windfall. I do not propose to spend it; history—few countries in Europe could say that at the instead, I have used it to pay off debt. moment. That reflects the confidence that investors have in Britain’s ability to pay its way. We will also maintain our control on welfare spending. I now want to test whether we can extend these The passing of the Welfare Reform Act two weeks ago benefits further into the future and diversify our portfolio. was an historic moment, and I pay tribute to my right The longest gilt we currently offer to the market is hon. Friend the Work and Pensions Secretary, and to all 50 years. The Debt Management Office will consult on my coalition colleagues for supporting him against the case for issuing gilts with maturities longer than determined opposition from those who defend unlimited 50 years and the case for a “perpetual” gilt with no fixed welfare. But even with the Act, the welfare budget is set redemption date— something that Britain last felt able to rise to consume one third of all public spending. If to do six decades ago. We are also taking the opportunity nothing is done to curb welfare bills further, the full to rebuild Britain’s reserves, which had fallen to historically weight of the spending restraint will fall on departmental low levels. I can confirm that our gold holdings have budgets. The next spending review will have to confront risen in value to £11 billion. Sadly, that does not include this, so I am today publishing analysis that shows that if the 400 or so tonnes of gold sold a decade ago for in the next spending review we maintain the same rate £2 billion, which would now be worth six times that, at of reductions in departmental spending as we have in over £13 billion. this review, we would need to make savings in welfare of £10 billion by 2016. Working families are already being helped by historic low mortgage rates. The NewBuy scheme that we introduced We will also address the rising costs of an ageing last week uses the Government’s balance sheet to help population and the burden this places on future generations. those who cannot afford the larger deposits that some We will publish a White Paper on social care. I have also mortgage companies are now demanding. It comes said we would consider proposals to manage future alongside a new, reinvigorated right to buy, and to increases in the state pension age, beyond the increases ensure that there are new homes to buy we are today already announced. I can confirm today that there will expanding the get Britain building fund that provides be an automatic review of the state pension age to up-front finance to construction firms. ensure it keeps pace with increases in longevity. Details We are also passing on our low interest rates to small of how this will operate will be published alongside the businesses, through the national loan guarantee scheme, OBR’s long-term fiscal sustainability report this summer. which started operation yesterday. Barclays, Lloyds, 797 Financial Statement21 MARCH 2012 Financial Statement 798

RBS, Santander and the new business bank, Aldermore, £1.2 billion in growth-enhancing infrastructure in that are all involved, and £20 billion of guarantees, in total, city. We will support £150 million of tax increment will be available. In the autumn statement, I also allocated financing to help local authorities to promote development, £1 billion to invest in funds that lend directly to the and we will provide an extra £270 million to the Growing mid-cap business that are the backbone of our economy. Places fund. In all this we are working with local areas This is an alternative source of finance to the banks. to support their ideas for growing the private sector in The response has exceeded our expectations; 24 funds parts of the country where the state has taken a larger have submitted proposals. I am today shortlisting seven and larger share of the economy. of them and, such has been the quality of the bids, I The Mayor of London is a very effective champion have also decided to increase the size of the finance for the city he runs so well. We will work with him on partnership by 20%. I am also today expanding the plans this summer to go on investing in London transport, enterprise finance guarantee. lengthening commuter trains, extending the underground Stability and credibility, the low interest rates they and exploring new river crossings in east London. So bring, and passing those low rates to families and from the allocation made to the Mayor through the businesses are necessary for growth, but alone they are Growing Places fund, he will be creating a new £70 million not sufficient. As a nation, we have to make a choice. development fund to attract new business and new jobs. This country became seduced by large deficits and the The Mayor has persuaded me of the opportunities illusion of cheap finance. Do we watch as the Brazils, that the new Royal Docks enterprise zone offers our Chinas and Indias of this world power ahead of us in largest city if we offer enhanced capital allowances the global economy or do we have the national resolve there, so we will. to say, “No, we will not be left behind. We want to be out in front”? That is this Government’s resolve. Twenty-four enterprise zones are now going ahead across England. Chinese investment is pouring into the Under this Government, Britain has moved into the zone in Liverpool. The Marches zone in the west midlands top 10 of the most competitive places in the world in is already expanding. I want other parts of the United which to do business—but we have to do more, and here Kingdom to benefit from these policies. My right hon. is how. First, on exports, over the last decade our share Friend the Chief Secretary can confirm today that we of world exports shrank as Germany’s grew. We sold will offer enhanced capital allowances for businesses more to Ireland than we did to Brazil, Russia, India and starting up in the new Scottish enterprise areas in China put together. That was the road to Britain’s Dundee, Irvine and Nigg, and there will be a new Welsh economic irrelevance, and we want to double our nation’s enterprise zone in Deeside, and we look forward to the exports to £1 trillion this decade. So we are expanding first enterprise zone in Northern Ireland. UK Export Finance and setting out new plans to help smaller firms in new markets. Exports abroad must be I want to see investment in our world-leading energy accompanied by investment at home. Britain has a sector, including renewables. We have launched the Green reputation as a remarkably open and welcoming place investment bank, which will be open for business next for investment. We must never allow protectionist rhetoric month. We have introduced a carbon price floor into to creep into our political system. our tax system to encourage investment and we have set Instead, we are actively seeking investment from overseas the rate today. Combined heat and power plants will pension and sovereign wealth funds, and working to not be liable to carbon price support rates on fuels used develop London as a new offshore market for the for heat. Chinese currency. We also want investment from British Renewable energy will play a crucial part in Britain’s pension funds in British infrastructure, and we are now energy mix, but I will always be alert to the costs that we working with a dozen of the large pension schemes are asking families and businesses to bear. Environmentally specifically on that. We are the first British Government sustainable has to be fiscally sustainable as well. The to set out in a national infrastructure plan the projects carbon reduction commitment was established by the we are going to prioritise in the coming decade: the previous Government. It is cumbersome and bureaucratic roads, railways, clean energy and water, and broadband and imposes unnecessary costs on business, so we will networks that we all need and that we have identified. seek major savings in the administrative cost of the I believe that this country must confront the lack of commitment for business. If those cannot be found, I airport capacity in the south-east of England. We cannot will bring forward proposals this autumn to replace the cut ourselves off from the fastest growing cities in the revenues with an alternative environmental tax. world, and my right hon. Friend the Transport Secretary Gas is cheap, has much less carbon than coal and will will set out Government thinking later this summer. We be the largest single source of electricity in the coming want to look at the opportunities for increasing the role years, so my right hon. Friend the Energy Secretary will of private investment in the road network, learning set out our new gas generation strategy in the autumn lessons from the water industry. I confirm today that to secure investment. I want to ensure that we extract Network Rail will extend the northern hub, adding to the greatest possible amount of oil and gas from our the electrification of the trans-Pennine rail route by reserves in the North sea. We are today introducing a upgrading the Hope Valley line between Manchester major package of tax changes to achieve this. We will and Sheffield and improving the Manchester to Preston end the uncertainty over decommissioning tax relief and Blackpool and the Manchester to Bradford lines. that has hung over the industry for years by entering For years transport investment in the north of England into a contractual approach. We are also introducing was neglected. Not under this Government. new allowances, including a £3 billion new field allowance We are working with our great cities to devolve for large and deep fields to open up West of Shetland, decision-making powers and we are striking a ground- the last area of the basin left to be developed—a huge breaking deal this week with Manchester to support boost for investment in the North sea. 799 Financial Statement21 MARCH 2012 Financial Statement 800

[Mr George Osborne] knows how it is done. Of course, these projects succeeded because they were not killed off by the planning system. We should not be shy about identifying our successful No one can earn their future if they cannot get planning industries and reinforcing them. Around one fifth of permission. Global businesses have diverted specific the world’s top 100 medicines originate from UK research, investments that would have created hundreds of jobs so we are backing our life sciences sector by creating the in some of the most deprived communities in Britain to Francis Crick institute at St Pancras and cutting taxes countries such as Germany and the Netherlands, because on patents to make this one of the most attractive they cannot get planning permission here. That is places in the world to invent new medicines. We have unacceptable. protected the science budget. Now we are committing Next week my right hon. Friend the Communities £100 million of support, alongside the private sector, Secretary and the Minister of State, Department for for investment in major new university research facilities. Communities and Local Government, my right hon. With the world’s second largest aerospace industry, we Friend the Member for Tunbridge Wells (Greg Clark), will also establish a UK centre for aerodynamics to the Minister with responsibility for planning, will publish open next year, which will encourage innovation in the results of our overhaul of planning regulation. We aircraft design and commercialise new ideas. are replacing 1,000 pages of guidance with just 50 pages. Today we set Britain this industrial ambition—that We are introducing a presumption in favour of sustainable we turn Britain into Europe’s technology centre. We will development, while protecting our most precious start with digital content. The film tax credit, protected environments. The new policy comes into effect when in our spending review, helped to generate over £1 billion the national planning policy framework is published of film production investment in the UK last year next Tuesday. This is the biggest reduction in business alone. Today I am announcing our intention to introduce red tape ever undertaken. similar schemes for the video games, animation and As a country, we also want to make the most of the high-end TV production industries. Not only will this Olympic and Paralympic games. Some of the biggest help to stop premium British TV programmes like events will be on a Sunday. When millions of visitors “Birdsong” being made abroad, but it will attract top come to Britain to see them, we do not want to hang up international investors like Disney and HBO to make a “Closed for Business” sign, so we will introduce more of their premium shows in the UK. It will legislation limited to relaxing the Sunday trading laws support our brilliant video games and animation for eight Sundays only, starting on 22 July. industries too, because it is the determined policy of this Government that we keep Wallace and Gromit Earning our way in the world means giving young exactly where they are. people the skills to compete. In time, the school reforms being introduced by my right hon. Friend the Education Secretary will do more to improve the long-term economic Hon. Members: More! More! performance of our country than any Budget measure ever will. But we have got to help the young adults who Mr Deputy Speaker (Mr Lindsay Hoyle): Order. I have already been let down by the schools system. We should have thought that Members on the Government are offering a record number of apprenticeships and Benches would want to hear more from the Chancellor, our youth contract comes into force next month. I can because the country does. tell the House that we are also exploring the idea of enterprise loans. Young people get a loan to go to Mr Osborne: To be Europe’s technology centre we university or college; now we want to help them get a need to have the best technology infrastructure. Two loan to start their own business. years ago Britain had some of the slowest broadband We are also looking to see whether we can make speeds in Europe. Today our plans will deliver some of public sector pay more responsive to local pay rates. As the fastest, with 90% of the population having access to we have just heard, that is something the last Government superfast broadband, and improved mobile phone coverage introduced in the Courts Service. London weighting for rural areas and along key roads across the UK. But already exists across the public sector. Indeed, the we should not be complacent by saying it is enough to Opposition have proposed the interesting idea of regional be the best in Europe when countries such as Korea and benefit rates. So we should see what we can do to make Singapore do even better, so today we are funding our public services more responsive and help our private ultra-fast broadband and wi-fi in 10 of the UK’s largest sector to grow and create jobs in all parts of the cities—Belfast, Birmingham, Bradford, Bristol, Cardiff, country. We have asked the independent pay review Edinburgh, Leeds, Manchester, Newcastle and London. bodies to look at this issue. Today we are publishing the My hon. Friend the Member for Brighton, Kemptown evidence the Treasury is submitting to them, and some (Simon Kirby) asked me to help small cities too, no Departments will have the option of moving to more doubt with his own city in mind. I agree; £50 million local pay for those civil servants whose pay freezes end will be available for smaller cities too. The fastest digital this year. speeds in the world available in our cities, with the most New infrastructure and investment and ambitious connected countryside in Europe and the most creative reforms of planning, education and welfare to help digital content anywhere—that is what a modern industrial businesses create jobs will all help Britain to earn its policy looks like. way in the world, but we also need a tax system that My right hon. Friend the Business Secretary and I supports work. Two hundred years ago Adam Smith set have asked Michael Heseltine to review by the autumn out the four principles of good taxation, and they how Government spending Departments and other public remain good principles today: taxes should be simple, bodies can work better with the private sector on economic predictable, support work and be fair. The rich should development. From Liverpool to Canary Wharf, Michael pay the most and the poor the least. The tax system this 801 Financial Statement21 MARCH 2012 Financial Statement 802

Government inherited from our predecessor has drifted like our Pensions Minister can work out exactly what far from these principles. We have already addressed someone is entitled to and what they need to save, so I some of the problem. We have established an Office of can confirm that we will introduce a new single-tier Tax Simplification to drive out complexity. Companies pension for future pensioners, set above the means test. are moving to Britain, not away. We stopped the jobs This is currently estimated at around £140. It will be tax. We have taken 1 million low-paid people out of tax based on contributions and will cost no more than the altogether. But now we need further reform. We need to current system in any year. We will bring forward further give Britain a modern tax system fit for the modern details later this spring. It will be a single, generous, world. basic state pension for those who have worked hard and The first goal is a far simpler tax system that businesses saved hard all their lives, and a further major simplification can easily navigate and where ordinary taxpayers understand of our tax and benefit system. what they are being asked to pay, so we will radically In the information age people should know what change the administration of tax for our smallest firms. taxes they are paying and what their money is being Last year I asked the Office of Tax Simplification for spent on. My hon. Friend the Member for Ipswich (Ben recommendations. It has proposed that we tax small Gummer) recently proposed to this House that we send firms on the basis of the cash that passes through their taxpayers an annual statement showing them just that. I businesses, rather than asking them to spend a huge think this is an excellent idea and intend to put it into amount of time doing calculations designed for big practice. HMRC contacts roughly half of taxpayers businesses. I agree, so we will consult on this new cash each year. From 2014, these 20 million taxpayers will at basis for calculating tax for firms with a turnover of up the same time receive a new personal tax statement. to £77,000, double what the Office of Tax Simplification This will tell people how much income tax and national proposed. This will make filling in tax returns dramatically insurance they have paid, their average tax rates and simpler for up to 3 million firms. how this contributes to public spending—in other words, We are also pressing forward with our ambition to how much, proportionately, of their tax bill goes to integrate the operation of income tax and national fund the healthcare, education, or welfare bills and how insurance, which I announced at last year’s Budget, so much is spent on servicing interest payments on the that we do not ask businesses to run two different national debt. People will know what they are paying payroll tax administrations. A detailed consultation on and what they are paying it for. A tax system that is how we will do this will be published next month. simple and transparent: that is our first goal. We will also address some of the loopholes and Our second goal is a tax system that is more competitive anomalies in our VAT system. For example, at present for business than any other major economy in the soft drinks and sports drinks are charged VAT, but world. Our predecessors wanted to increase taxes on sports nutrition drinks are not. Hot takeaway food on small businesses. Instead, we have cut the tax rate on the high streets has been charged VAT for more than small companies to 20%. Our predecessors wanted to 20 years, but some new hot takeaway products in increase national insurance on jobs, and we have cut it. supermarkets are not. Some companies are using the Our new controlled foreign company rules will be legislated VAT rules that exempt the rental of land to avoid the for in the coming Finance Bill and will stop global firms tax that their competitors are paying. We are publishing leaving Britain, as they were, and encourage them to our plans today to remove loopholes and anomalies, start coming here. but we will keep the broad exemptions on food, children’s This Government also support research and development clothes, printed books and newspapers. here in Britain instead of abroad. We have already We should also simplify the age-related allowances, increased the generosity of the R and D tax credit for which the Office of Tax Simplification recently highlighted smaller firms. I confirm that from next year we will also as a particularly complicated feature of the tax system. introduce an above-the-line R and D tax credit that The National Audit Office points out that many pensioners business organisations such as the Engineering Employers do not understand them. These allowances require around Federation, the Institute of Directors and the CBI have 150,000 pensioners to fill in self-assessment forms, and campaigned hard for. We will help new start-up businesses as we have real increases in the personal allowances, to recruit and retain talent by more than doubling the their value is already being eroded. enterprise management incentive scheme grant limit to So over time we will simplify the tax system for £250,000 and easing the rules so that academics in our pensioners by doing away with the complexity of the universities can turn great ideas into great companies. additional age-related allowances for anyone reaching The Treasury will review for this autumn what more we the age of 65 on or after 6 April 2013, and I will freeze can do to encourage employee ownership. the cash value of the allowance for existing pensioners All these tax reductions will help to win business for until it aligns with the personal allowance. This will Britain, but the headline rate of corporation tax remains protect the existing level of allowance pensioners have the most visible sign of how competitive our country is. while introducing a new single personal allowance for We have already cut the rate from 28% to 26%. This all. It is a major simplification, it saves money, and no April it is due to fall again to 25%. I can tell the House pensioner will lose in cash terms. today that we will have a further cut of 1%, to be Under this Government, pensioners next month will implemented right away. receive the largest ever cash increase in the basic state From next month, Britain will have a corporation tax pension of £5.30 a week. Now we want to simplify the rate of just 24%, and we will continue with the two basic state pension and its interaction with the second further cuts planned next year and the year after, so that state pension. I pay tribute to the work my hon. Friend by 2014 Britain will have a 22% rate of corporation tax. the Pensions Minister has done on this. Such is the That is the biggest sustained reduction in business tax complexity of this means-tested system that only someone rates for a generation—a headline rate that is not just 803 Financial Statement21 MARCH 2012 Financial Statement 804

[Mr George Osborne] cars, reduce the CO2 threshold for the main capital allowance rates and increase the percentage list price of lower than our competitors, but dramatically lower: company cars subject to tax. I can also announce that I 18% lower than the US, 16% lower than Japan, 12% below am again freezing vehicle excise duty for road hauliers. France and 8% below Germany. That is an advertisement I now turn to personal and property taxation. My for investment and jobs in Britain, and it is a rate that goal is a tax system where the lowest paid are lifted out puts our country within sight of a 20% rate of business of tax altogether, while the tax revenues that we get tax that would align basic rate income tax, the small from the richest increase. Most wealthy people pay their companies rate and the corporation tax rate. taxes, and without them we could not begin to afford I am also increasing the rate of the bank levy to the public services upon which this country depends, 0.105% from next January, so that the additional but under the last Government it was the boast of some corporation tax cuts do not benefit the banks, and so high earners that, with the help of their accountants, that our levy will in addition raise the £2.5 billion a year they were paying less in tax than their cleaners. that we said it would. I regard tax evasion and, indeed, aggressive tax avoidance That brings me to the main duties. Let me start with as morally repugnant. We have increased both the resources alcohol duty. The Government will shortly be publishing and the number of staff working on evasion and avoidance their alcohol strategy to address the growing problem of at HMRC. Taken together, the anti-avoidance measures alcohol abuse, and the many billions of pounds it costs in this year’s Finance Bill will increase tax revenue over our NHS and criminal justice system, but today I have the next five years by around £1 billion, and protect a no further changes to make to the duty rates set out by further £10 billion that could have been lost. This week my predecessor. we have signed a further agreement with the Swiss to Turning to tobacco duty, smoking remains the biggest stop UK residents evading tax. cause of preventable illness and premature death in the We have done all these things, but today we do even UK. There is clear evidence that increasing the cost of more. On coming to office, I asked Graham Aaronson tobacco encourages smokers to quit and discourages QC to establish whether a general anti-avoidance rule young people from taking it up. So duty on all tobacco could work in the UK tax system. He recommended products will rise by 5% above inflation. That is 37p on that such a rule would improve our ability to tackle tax a packet of cigarettes, and this will take effect at avoidance without damaging the competitiveness of the 6pm tonight. UK as a place to do business. We agree, so we will One area where I am today making substantial changes introduce one. We will consult on the details of the new is gambling duties. The VAT treatment of gaming machines rule and legislate for it in next year’s Finance Bill. is being repeatedly challenged by operators in the courts, A major source of abuse, and one that rouses the so I will introduce a new machine games duty, with a anger of many of our citizens, is the way in which some standard rate of 20%, and a lower rate for low stakes people avoid the stamp duty that the rest of the population and prize machines of 5%, of net takings. The current pays, including by using companies to buy expensive duty regime for remote gambling introduced by the last residential property. I have given plenty of public warnings Government was levied on a “place of supply” basis. that this abuse should stop, and now we are taking This allowed overseas operators largely to avoid it, and action. I am increasing the stamp duty land tax charge much of the industry has, as a result, moved offshore. applied to residential properties over £2 million that are Ninety per cent of online gambling consumed by our bought into a corporate envelope. The charge will be citizens is now supplied from outside the UK, and the 15%, and it will take effect today. remaining UK operations are under pressure to leave. This is clearly not fair—and not a sensible way to We will also consult on the introduction of a large support jobs in Britain. So we intend to introduce a tax annual charge on those £2 million residential properties regime based on the place of consumption—where the that are already contained in corporate envelopes, and, customer is based, not the company—and, from this to ensure that wealthy non-residents are also caught by April, we will also introduce double taxation relief for these changes, we will be introducing capital gains tax remote gambling. These changes will create a more level on residential property held in overseas envelopes. We playing field, and protect jobs here. are also announcing legislation today to close down the subsales relief rules as a route of avoidance. I turn now to fuel and vehicle excise duties. High oil prices have put real pressure on household budgets and Let me make this absolutely clear to people. If you on businesses. That is why we took action in last year’s buy a property in Britain that is used for residential Budget to cut fuel duty so that it is 6p lower than our purposes, we will expect stamp duty to be paid. This is predecessors planned. We have also scrapped the last the clear intention of Parliament, and I will not hesitate Government’s fuel duty escalator of annual above-inflation to move swiftly, without notice and retrospectively if rises, regardless of the oil price, and we are today inappropriate ways around these new rules are found. confirming the fair fuel stabiliser. Above-inflation rises People have been warned. It is fair when money is tight, will return only if the oil price falls below £45 on a and so many families could do with help, that those sustained basis—currently equivalent to about $75. These buying the most expensive homes contribute more. From measures mean that this Government have eased the midnight tonight, we will introduce a new stamp duty burden on motorists by £4.5 billion at a time when land tax rate of 7% on properties worth more than money is very short. I do not propose to make any £2 million. further changes to the fuel duty plans already set out. I also intend to deal with the unlimited use of income I am increasing vehicle excise duty by inflation only. tax reliefs. Let us be clear: most rich people pay a lot of To encourage fuel efficient fleets, we will extend the tax. It is also right that we have tax reliefs that promote 100% first-year capital allowance for low-emission business investment, support charitable giving and reflect genuine 805 Financial Statement21 MARCH 2012 Financial Statement 806 business loss. But it cannot be right that some people Mr Osborne: No Chancellor can justify a tax rate make unlimited use of these reliefs year after year. that damages our economy and raises next to nothing—it Everyone in this country, and particularly those with is as simple as that. Thanks to the other new taxes on the highest incomes, should contribute a fair share to the rich that I have announced today, we will be getting the Exchequer. Some reliefs, such as the enterprise five times more money each and every year from the investment scheme and pensions relief, are already capped, wealthiest in our society. So the richest pay more— and I do not intend to make any significant changes to [Interruption.]. pensions relief in this Budget. But, to make sure that those on the highest income contribute a fair share, I Mr Deputy Speaker (Mr Lindsay Hoyle): Order. am introducing a new cap on those reliefs that are Mr Flello, you are getting very excited at the back. I am currently uncapped. sure that you want to calm down; it is not good for your From next year, anyone seeking to claim more than health. £50,000 of these reliefs in any one year will have a cap set at 25% of their income. We have capped benefits. Mr Osborne: The richest pay more, the economy Now it is right to cap tax reliefs too. benefits and Britain is competitive again. That brings me to the rates of income tax and the The shadow Chancellor and quite a few Labour additional rate of 50p. This tax rate is the highest in the Members have said that the HMRC report is not enough G20; it is higher not just than the tax rate of America, and that the Office for Budget Responsibility should but also of major European countries like France, Italy pass judgment. It has, because these days the direct and Germany. It is widely acknowledged by business costing that the Treasury applies to every Budget measure organisations and international observers as harming is independently assessed and certified by the OBR. the British economy. Like the previous Chancellor who Unlike the previous Government, it also assesses the introduced it, I have always said that it was temporary. cash flow consequences of forestalling. But I also said, three years ago, that I would not be When it comes to the £100 million direct permanent prepared to reduce it while we were asking the whole costs of this measure, the OBR says this: public sector to accept a pay freeze, and I will stick to “we believe that this is a reasonable and central estimate”. those pledges. It also assesses as reasonable the estimate that the new A 50p tax rate, with all the damage it does to Britain’s taxes that I have introduced on the rich today directly competitiveness, can only be justified if it raises significant raise five times that amount. That is half a billion sums of money. In last year’s Budget, I asked Her pounds that we can now use to help people on lower Majesty’s Revenue and Customs to look at the evidence, and middle incomes keep more of their earnings. and especially to look at the self-assessment tax receipts that have come in since this January. I am publishing its In the spending review, we took the difficult decision report today. What it reveals is that the 50p tax rate has to remove child benefit from families with a higher rate caused massive distortions. taxpayer. I said then that I simply could not justify asking those earning £15,000 or £30,000 a year to go on HMRC finds that an astonishing £16 billion of income paying child benefit to those earning £80,000 or £100,000, was deliberately shifted into the previous tax year, at a and I stand by that principle. All sections of society cost to the taxpayer of £1 billion—something that the must make a contribution to dealing with the deficit. previous Government’s figures made no allowance for Without this measure, we would not get the job done. whatsoever. Self-assessment receipts this year are below But I said that I wanted to do this in a way that is fair forecast by some £3.6 billion, while other tax receipts and that does not involve setting up some new means-tested have held up. The increase from 40p to 50p raised just a tax credit system for millions of families; and I said I third of the £3 billion that we were told it would raise. would set out exactly how this measure would be Of course, the previous Government initially proposed implemented in this Budget. a rate of 45p and then increased that to 50p. Let me tell We want to avoid a cliff edge that means that people the House what HMRC says about the difference between lose all their child benefit when they earn just a pound 50p and 45p. Its figures— more. So I can today confirm that, instead of withdrawing child benefit all at once when people earn more than the Ms Angela Eagle (Wallasey) (Lab): What about the higher rate threshold, the benefit will only be withdrawn OBR? when someone in the household has an income of more than £50,000, and the withdrawal will be gradual—1% of child benefit for every extra £100 earned over £50,000, so Mr Osborne: I am coming on to the OBR, don’t you there is no cliff edge and only those with an income of worry. more than £60,000 lose all their child benefit. The HMRC figures tell the story. The direct cost is This means that an extra 750,000 families will keep only £100 million a year. Indeed, HMRC calculates that some or all of their child benefit, and 90% of all the loss of other tax revenues may even cancel that out. families will remain eligible for child benefit. We can In other words, it raises at most a fraction of what we afford to implement the child benefit policy in this were told, and may raise nothing at all. So from April way because instead of extending the full benefit of this next year, the top rate of tax will be 45p. No Chancellor Budget’s increase in the personal allowance to all [Interruption.] can justify a tax rate— higher rate taxpayers, as we did last year, we will pass on a quarter of the benefit to higher rate taxpayers Mr Deputy Speaker (Mr Lindsay Hoyle): Order. We and spend the rest on helping families with children are nearly coming to the end, and I want the same towards the bottom of the higher rate band, as I have respect to be given to the Leader of the Opposition. explained. 807 Financial Statement21 MARCH 2012 Financial Statement 808

[Mr George Osborne] of business tax in the world; a simpler tax code; and a country where its citizens know the taxes they are That brings me on to the personal allowance and the paying and what they are paying them for. We have central goal of this Budget, which is to support working achieved all this and kept to our deficit plan. families. This coalition Government believe that the Let us be resolved. No people will strive as the British best way to support working people on the lowest will strive. No country will adapt as the British will incomes is to take them out of tax altogether, and the adapt. No country will value those who work as we best way of getting money directly into the pockets of will value those who work. Together, the British people working families on middle incomes is to increase the will share in the effort and share the rewards. This amount of their earnings that they can keep before they country borrowed its way into trouble; now we are pay tax. going to earn our way out. I commend the Budget to That is why this Government have set themselves the the House. [Interruption.] goal of raising the personal tax-free allowance to £10,000, and we have promised real increases every year to reach Mr Deputy Speaker (Mr Lindsay Hoyle): Order. that. In my last two Budgets, we made great strides [Interruption.] Order. [Interruption.] I think we have forward. Last year, the personal allowance rose by had enough. Thank you, Mr Baron; you may get a new £1,000; in two weeks’ time, it will go up by another job at this rate. £630 to £8,105. Together, these increases have taken Under Standing Order No. 51, the first motion, entitled over a million low-paid people out of tax altogether. “Provisional Collection of Taxes”, must be decided Today, I want to go much further and much faster. I without debate. I call on the Chancellor of the Exchequer am announcing the largest ever increase in the personal to move it formally. allowance—that is, the amount that people can earn tax PROVISIONAL COLLECTION OF TAXES free. From next April, that amount will increase by £1,100. Every working person on low or middle incomes Motion made, and Question put forthwith (Standing will benefit. People will be able to earn up to £9,205 before Order No. 51(2)), they have to pay any tax. Millions of working people That, pursuant to section 5 of the Provisional Collection of will be £220 better off every year; that is £170 better off Taxes Act 1968, provisional statutory effect shall be given to the after inflation. Because higher rate earners will also following motions:— benefit, 24 million people earning less than £100,000 a (a) Tobacco products duty (rates) (Motion No. 40); year will gain from this measure. We are in touching (b) Alcoholic liquor duties (rates) (Motion No. 41); distance of the goal of a £10,000 personal allowance (c) Amusement machine licence duty (rates) (Motion No. 47); that we all share. (d) Landfill sites in Scotland (Motion No. 58); I can tell the country that as a result of our Budgets, (e) Stamp duty land tax (prevention of avoidance: subsales etc) people working full time on the minimum wage will (Motion No. 65); have seen their income tax bill cut in half. This coalition (f) Stamp duty land tax (rates: residential property where Government will have taken 2 million of the lowest paid consideration exceeds £2m) (Motion No. 66). people in our country out of tax altogether. (g) Stamp duty land tax (higher rate for certain acquisitions by companies etc) (Motion No. 67)—(Mr George Osborne.) In the middle of this Parliament, in difficult economic Question agreed to. times, this coalition Government have not settled for a do-nothing Budget. We have not ducked the difficult Mr Deputy Speaker: I now call on the Chancellor of choices; we have taken them head on—a competitive the Exchequer to move the motion entitled “Amendment top rate of tax; more revenues from those best able to of the Law”. It is on that motion that the debate will pay; fewer reliefs; a tax cut for working people; support take place today and on the succeeding days. The remaining for families; and low-income earners taken out of tax motions will be put at the end of the Budget debate on altogether. Alongside it, we have one of the lowest rates Monday 26 March. 809 21 MARCH 2012 Budget Resolutions and Economic 810 Situation Budget Resolutions and Economic and growth down next year. Every time he comes to the Situation House, he offers a different excuse, but the reality is that his plan has failed. Last year, he told us that unemployment would peak in 2011, and what has he delivered? We are AMENDMENT OF THE LAW into 2012, and unemployment is rising month upon Motion made, and Question proposed, month upon month. His plan has failed. He promised (1) That it is expedient to amend the law with respect to the us last year that the deficit would be gone by the end of National Debt and the public revenue and to make further the Parliament, but today he admits that he is borrowing provision in connection with finance. over £150 billion more than he said he would. His plan (2) This Resolution does not extend to the making of any has failed. amendment with respect to value added tax so as to provide— In the face of failure, what does the Chancellor offer? (a) for zero-rating or exempting a supply, acquisition or Not a change in economic strategy, not a guarantee of importation, jobs for the young unemployed, not targeting every (b) for refunding an amount of tax, penny he can at working families. We know that for the Chancellor the driving ambition of this Budget was to (c) for any relief, other than a relief that— deliver a tax cut for people earning over £150,000 a (i) so far as it is applicable to goods, applies to goods of year. There are 30 million taxpayers in this country; this every description, and policy will do absolutely nothing for 29,700,000 of (ii) so far as it is applicable to services, applies to them. How can the priority for our country be an services of every description.—(Mr George Osborne.) income tax cut for the richest 1% at a time when the squeezed middle are facing rising petrol prices, higher 1.32 pm energy bills, and cuts in tax credits and child benefit? Edward Miliband (Doncaster North) (Lab): The Let us think of what the Chancellor could have done Chancellor spoke for an hour, but one of his usual with the money. He could have reversed his cuts to tax phrases was missing; there was one thing that he did not credits. He could have done something for pensioners; say. Today marks the end of “We’re all in it together”, in fact, I think there is a tax rise for pensioners hidden because after today’s Budget—[Interruption.] in the detail of this Budget. He could have done more to undo the damage to child benefit, but he claims he Mr Deputy Speaker (Mr Lindsay Hoyle): Order. cannot afford it. Let me tell him this: every time in Mr Gummer, I do not think we need you to lead the future he tries to justify an unfair decision by saying cheerleading. We have given respect to the Chancellor that times are tough, we will remind him that he is the of the Exchequer, and I expect the same respect to be man who chose to spend hundreds of millions of pounds given to the Leader of the Opposition. on those who need it least. Wrong choices, wrong Edward Miliband: After today’s Budget, millions will priorities, wrong values; out of touch, same old Tories. be paying more while millionaires pay less. A year ago, Let me come to his claims on stamp duty. There are the Chancellor said in his Budget speech that 300,000 people benefiting each and every year from his “now would not be the right time to remove” top rate tax cut, and there are 4,000 houses sold each the 50p tax rate year for more than £2 million. So 99% of those who “when we are asking others in our society”—[Interruption.] gain from his millionaires’ tax cut will be totally unaffected by the rise in stamp duty and will get a massive windfall Is the Chancellor saying that he did not say it? He said from this Chancellor. He did not tell us what this meant that in pounds and pence—[Interruption.] Oh, the Prime “now would not be the right time to remove” Minister thinks that the Chancellor did say how much the 50p tax rate each person is getting as a result of the top rate tax cut. “when we are asking others in our society on much lower incomes He did not, and I am going to tell him the figure. There to make sacrifices”.—[Official Report, 23 March 2011; Vol. 525, are 14,000 people earning over £1 million in Britain. c. 957.] The Chancellor’s decision today means that each of That is exactly what he has done. With tax credits cut, them will get a tax cut—not of £1,000, not of £5,000, child benefit taken away, and fuel duty rising, what has not of £10,000, but of over £40,000—[Interruption.] he chosen to make a priority? For Britain’s millionaires, a massive income tax cut each and every year. The Mr Deputy Speaker (Mr Lindsay Hoyle): Order. It is fairness test for this Budget was whether the Chancellor not good if the Leader of the Opposition is not allowed used every penny he could to help middle-income families to speak. who are squeezed. He has failed that test. Anyone who Edward Miliband: That tax cut is not just for this year listened to him will be asking the same question: what but for every year. What happens to families who earn planet are he and the Prime Minister living on? There in one year half what the Chancellor has so casually are 1 million young people out of work and 50 businesses given away to the richest in the last hour—families on going bust every day, and there is a cost of living crisis £20,000 a year, perhaps those of a nurse or a lorry for families. They promised change, but things have got driver? Even after the personal allowance change, they worse, not better. are not going to be better off; they are going to be worse What did the Chancellor promise us in last year’s off. Putting aside the VAT rise and all the other tax rises Budget? He said that he would that have happened, from this April alone they will be a “put fuel into the tank of the British economy.”—[Official Report, further £253 a year worse off. All he is doing for 23 March 2011; Vol. 525, c. 966.] ordinary families is giving with one hand and taking far He promised growth of 2.5% in 2012, but today he more away with the other. This is a millionaire’s Budget comes to the House and tells us that it will be just that squeezes the middle. Wrong choices, wrong priorities, 0.8%: growth down last year, growth down this year, wrong values, out of touch—same old Tories. 811 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 812 Situation Situation [Edward Miliband] Edward Miliband: What about the hapless accomplice, the Deputy Prime Minister? Only the Liberal Democrats Under the Chancellor’s tax cut, a banker earning could be dumb enough to think that a George Osborne £5 million will get an extra £240,000 a year. Let us call it Budget is a Robin Hood Budget. Calamity Clegg strikes what it really is: the Government’s very own bankers’ again! A few months ago, the Deputy Prime Minister bonus. Presumably, he wants us to believe that the said of the 50p tax rate, with no ifs and no buts: £240,000 tax cut is necessary to make the bankers work “I do not believe that the priority…is to give a tax cut to a tiny, harder. It is one rule for them and another rule for tiny number of people who are much, much better off than everyone else. This April, the Chancellor will be telling anybody else.” a family working for 16 hours on the minimum wage The party that once followed Lloyd George is now that, if they do not work more hours, they will lose reduced to following George Osborne. The party that nearly £4,000 in tax credits. That tells people everything delivered the people’s Budget of 1909 is supporting the they need to know about the values of the Chancellor millionaire’s Budget of 2012. The Liberal Democrats and the Prime Minister: the poor will work harder only should be ashamed. For all the talk and all the briefings, if they are made poorer; the rich will work harder only the Deputy Prime Minister has done what he has done if they are made richer. Wrong choices, wrong values, on every big issue, from tuition fees to the betrayal on wrong priorities—same old Tories. the NHS—he has rolled over and said, “Yes, Prime While everybody else is squeezed, what is the Chancellor’s Minister.” priority? It is a massive tax cut for those on his Christmas The truth is that for ordinary families, it is hurting, card list. The Chancellor talked a lot about tax transparency. but it is not working. We know why that is. This Let us have some—[Interruption.] Government have been cutting too far and too fast. What did the Chancellor say last August about America’s Mr Deputy Speaker (Mr Lindsay Hoyle): Order. Mr more balanced deficit reduction plan? He said: Hands, I think that you need to calm down. What you “Those who spent the whole of the past year telling us to are doing is not good for the House. follow the American example…need to answer this simple question: why has the US economy grown more slowly than the UK Edward Miliband: Let us have some tax transparency. economy”?—[Official Report, 11 August 2011; Vol. 531, c. 1108.] Hands up in the Cabinet if you are going to benefit The numbers are in. The Chancellor is plain wrong. The from the income tax cut. Come on. Come on. Come on. US economy grew by 1.7% last year—twice the rate of [Interruption.] ours. The Government have run out of excuses. It is their mistakes and the failure of their plan that are Mr Deputy Speaker: Order. Mr Shelbrooke— damaging our future. [Interruption.] Order. Mr Shelbrooke, I have looked at Today we have heard about more schemes from the you twice and I do not want to continue to do so. We Chancellor, but why should we believe him? Every need a bit of silence from you. If not, you might be scheme that he has put forward so far has failed. What better off leaving the Chamber. I think that we understand was the big idea of his first Budget? The national each other. insurance holiday. We did not hear much about the national insurance holiday today, and it is no wonder. Edward Miliband: The Prime Minister is the man who He told us in his June 2010 Budget that it would help said that 400,000 firms. He has missed his target by 97%. The “sunlight is the best disinfectant”. Chancellor’s plan has failed. What was the centrepiece Here is the challenge. Just nod if you are going to of last year’s Budget? It is easy to forget now, but it was benefit from the income tax cut or shake your head if called the “Budget for growth”. This scheme is my you are not. Come on. Come on. Come on. Come on, favourite. It is called the business growth fund. Six we have plenty of time. [Interruption.] regional offices have been opened and how many businesses are benefiting? Six. [Laughter.] It is true. One business Mr Deputy Speaker: Order. Members on both sides for each office. The Chancellor’s plan has failed. We of the House will come to order. The Leader of the needed a plan for growth that would work. We needed a Opposition will be heard with the same courtesy that guarantee on youth jobs. We needed a British investment was given to the Chancellor. I do not want to have to bank to help small business. On growth, jobs and how rule further, because I will have to get firmer. It is only we pay our way in the world, this Chancellor has failed. right that the country hears what the Opposition have On the film tax relief proposal, it is great to support to say. [Interruption.] I do not need any examples from great British success stories such as “Downton Abbey”. hon. Members. Mr George Osborne: And Wallace and Gromit. Edward Miliband: One more chance. Nod or shake your head. Are you going to benefit? I have one thing to Edward Miliband: Indeed, and Wallace and Gromit. say to the Prime Minister: let sunshine win the day. I It is important to support “Downton Abbey”, the tale hear that this is good news for him, because now he will of a group of out-of-touch millionaires who act like be able to buy his own horse. [Interruption.] they were born to rule, but turn out not to be very good at it. It sounds familiar, does it not? We all know that it Mr Deputy Speaker: Order. We will not have any is a costume drama; the Cabinet think it is a fly-on-the-wall clapping in the Chamber. Seriously, it does not do this documentary. House or its reputation any good when we cannot hear This Budget will be remembered for the Chancellor’s the Leader of the Opposition. Members on both sides failure on growth and jobs, and for the top rate tax cut. must show courtesy. That is not just a bad policy or a misjudgment. It 813 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 814 Situation Situation destroys the claims that the Prime Minister made about The biggest influence on overall macro-economic who he was and what he believed. He said personally in policy at the moment, therefore, is probably the Bank of the aims and values document that he sent to every England. It is becoming more powerful than ever before, Conservative party member: which is why the Treasury Committee will look closely “The right test for our policies is how they help the most at how much of the latest round of quantitative easing disadvantaged in society, not the rich.” is finding its way into final demand. It is also why The document was called “Built to Last”. That was his strong accountability of the Bank to Parliament is test. It is a test that this Budget fails spectacularly. This essential. The Treasury Committee is united in the view is the death knell of his project and of his compassionate that the proposals currently in the Financial Services conservatism. He and the Chancellor have shown their Bill are simply not enough, and we will press on behalf true colours. They promised change, but they have of Parliament for significant improvements on Report. failed on growth, on jobs, on borrowing and on fairness. It is unfair, out of touch, and for the few, not the Hugh Bayley (York Central) (Lab): At the time of the many—an unfair Budget built on economic failure; an last general election, the national debt stood at £760 billion. unfair Budget from the same old Tories. It has now risen to more than £1 trillion for the first time in history and is on track to rise to about £1.5 trillion. Several hon. Members rose— What does the Chairman of the Treasury Committee think the impact on interest rates will be by the end of this Parliament? Mr Deputy Speaker (Mr Lindsay Hoyle): Order. I ask Members who are not staying to clear out quickly. I call Mr Andrew Tyrie. Mr Tyrie: I think I will ask the Bank of England that question when it comes to see the Committee, but I agree that the issue needs to be taken into consideration. Mr Andrew Tyrie (Chichester) (Con): Thank you, Mr Deputy Speaker. One measure that was announced yesterday, about which I might just have time to say a few words now that I have some injury time, was credit easing. Yesterday’s Mr Deputy Speaker: I remind Mr Tyrie that there is a announcement on the loan guarantee scheme responded time limit of 10 minutes. to many constituents’ complaints that they simply cannot get the money they need to run or start up small Mr Tyrie: I hope that my time has not started yet. businesses. We all have constituents in that position, and the scheme will offer some welcome relief. How Mr Deputy Speaker: I have not started it yet. I am much relief? I think it will offer only a little, and there is allowing the Chamber to clear. The hon. Gentleman a risk of the banks pocketing most of the money. The need not worry, because we want to hear what he has to Treasury Committee, the Public Accounts Committee— say. I do not know whether its Chair is in her place—and the National Audit Office all need to play a role in ensuring that the banks do not run off with the money, and that 1.49 pm value for money is secured. Mr Andrew Tyrie (Chichester) (Con): I am also available None the less, I still think the scheme may turn out to for injury time, if anybody wants to chip in. After the be valuable, for several reasons. First, by announcing it generals, it always falls to me to be the first of the foot the Chancellor has raised the salience of an important soldiers. issue and put pressure on the banks not to dismiss The first point that I want to make is about the requests for loans without examining them properly. overall Budget judgment. The issue that overshadows Furthermore, it seems to me that the Treasury’s own all the others to which the Chancellor referred is that pessimistic briefing yesterday that the money will go Britain is living beyond its means. We are borrowing only to existing borrowers is almost certainly mistaken. £1 for every £4 we spend. That is why the last Chancellor There is very likely to be some more lending, because of the Exchequer was right, in his final Budget two banks will benefit from the stronger financial position years ago, to set out a tough deficit reduction plan, even of firms to which they have lent. Those loans, in turn, if his neighbour argued about it all the way. It is also will be less risky for the banks, so they should have some why the current Chancellor was absolutely right today more headroom for new lending without altering their to stick to a clear plan for deficit reduction. Although it risk profile. is not popular with most Members to say this, I also deeply respect the Liberals for helping to make that Andrea Leadsom (South Northamptonshire) (Con): plan a cornerstone of coalition policy, despite all the Does my hon. Friend agree that one of the best ways to flak they take. improve lending to small and medium-sized enterprises Some have argued that the economy needs a further is a dramatic improvement in the amount of competition fiscal boost on top of the deficit that we are already in the British banking system? running. It is worth bearing it in mind that the last Chancellor injected a £20 billion boost in 2009, but that Mr Tyrie: I absolutely agree. My hon. Friend serves sum pales into insignificance compared with the £100 billion with me on the Treasury Committee, and we have of quantitative easing over the past 12 months or the published quite a detailed report on competition in £300 billion of quantitative easing since the crisis began. retail banking that has won the support of Vickers and Even though quantitative easing and fiscal policy are of the Joint Committee on the Draft Financial Services not directly comparable, it is clear that monetary policy Bill, chaired by my right hon. Friend the Member for has played a huge role in managing the recession. Hitchin and somewhere. [Interruption.] Harpenden, is 815 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 816 Situation Situation [Mr Tyrie] more efficiency than was outlined for them when they were introduced? We have not made up our mind about it? My right hon. Friend the Member for Hitchin and which measures to examine in that respect, but I suspect Harpenden (Mr Lilley)? Anyway, wherever it is, it is that in a few years’ time the cut in the top rate of tax somewhere in Hertfordshire. announced today will be a prime candidate. We will be The loan guarantee scheme was at least announced. I able to judge whether Mr Laffer really was out and have to tell the Chancellor, who is in his place, that about. several colleagues on both sides of the House have complained to me about the leaks and briefings in the Sir Robert Smith (West Aberdeenshire and Kincardine) days prior to the Budget. All that I will say at this point (LD): Will the hon. Gentleman give way? is that the Treasury Committee will look at the matter. Mr Tyrie: I might be able to manage just one more The Committee will also publish a preliminary report intervention. on the Budget in time for the consideration of the Finance Bill. The timetable proposed by the Government Sir Robert Smith: I thank the hon. Gentleman. In is very tight, but we will do our best. In particular, we looking at the tax system, will he consider how the will scrutinise what the Chancellor has described—correctly, constructive engagement between the oil and gas industry by the look of things—as a tax-reforming Budget. We in the North sea and the Treasury has led to a change of will examine whether the main tax measures live up to heart, some certainty on decommissioning and added what it is claimed they will achieve. We will assess them incentives to encourage further investment and more against a number of principles that the Committee revenue for the Treasury? believes should guide tax reform, which we set out in a report 14 months ago, “Principles of tax policy”. Mr Tyrie: We were a bit concerned about that. The Chancellor announced in either his first or second Dame Joan Ruddock (Lewisham, Deptford) (Lab): Budget that he would not alter the framework for the Will the hon. Gentleman give way? North sea tax regime, and then in his following Budget announced significant changes. That does not do wonders Mr Tyrie: I will give way one more time, but I do not for tax certainty, of course. We need to keep an eye on get any overtime for this intervention. exactly that sort of thing. We need to move steadily and Dame Joan Ruddock: I am most grateful. I hope that remorselessly towards a simpler, fairer, clearer, more when the Committee does its review, it will consider the certain and more reliable tax system. That is what will fact that for an ordinary family with two children, unlock the huge potential for investment in the private the losses coming this April will amount to £530 and sector; medium-sized and large firms are often sitting the compensation that the Chancellor boasted of giving on cash piles and have very strong balance sheets. will amount to only £220. I am sorry—I have lost my way. Mr Tyrie: We will seek evidence on that point and on Derek Twigg (Halton) (Lab): You’re not the only one. all the main measures, and we will publish it as quickly as we can. I thank the right hon. Lady for making that Mr Tyrie: I will do my best to assist the hon. Gentleman point. and get back into the groove. The principles that we set out in our paper a little The tax changes that have been announced today over a year ago were more or less endorsed by the should play a crucial role in encouraging economic Chancellor today. They were: does a measure make the activity. However, that is only part of what is required tax system more simple, predictable—the Chancellor to transform the growth potential of the economy. We used that word—stable, fair and coherent, and does it also need a much wider supply side agenda to be unlock higher economic growth? As last year, we will implemented. We need labour market reform. The ask the major accountancy bodies—the chartered Chancellor has announced his intentions on planning, accountants, the certified accountants and the Chartered and we need simpler regulation. He combined the planning Institute of Taxation—to score each major measure and the regulation points in his speech today. against those principles. We hope the Committee can The decision to tell taxpayers in each statement that thereby assist the House in gauging progress towards a they receive how their money is spent and how much simpler, fairer tax system. That is what all our constituents tax they pay as individuals is a huge step forward. My want. hon. Friend the Member for Ipswich (Ben Gummer), We will also ask those bodies to scrutinise some of who is no longer in his place, has been pressing for that the measures that have been announced today—the cap for a few years. I argued for it 25 years ago when I was at on tax reliefs and its workability; the yield from the the Treasury. 45p rate; the general anti-avoidance provision, about Britain is in the early stages of recovery from the which a number of us have concerns; and the reference biggest boom and bust cycle since the war. The UK has to retrospection in the tax system that is associated with had to absorb the biggest bank failure—RBS—that, as that provision, which many have held could damage the far as I know, the world has ever seen. We are now yield in the long run. We will also take a look at the having to absorb a crisis among our closest trading Leader of the Opposition’s point that this was a Budget partners, generated by fundamental flaws in the design for millionaires, at the expense of the squeezed middle. of the eurozone. The times are uncertain and confidence A number of colleagues have asked the Committee is at a premium. Whatever one’s view of the overall also to examine measures that were introduced in previous Budget judgment, most people agree that confidence is Budgets, to see what the effect of them has been. Have bolstered when Governments do what they say they will they had the effect of raising more revenue and generating do. In the Budget, the Chancellor has done just that. 817 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 818 Situation Situation 2.1 pm Dr Huppert: The hon. Lady raises the issue about women, which is clearly important. That is why it is Ann McKechin (Glasgow North) (Lab): There has disappointing that at the end of the 13 years of the been much trumpeting and advance spinning of the Labour Government, 28% more women were unemployed Budget in recent days, so almost every announcement than at the beginning. Does she accept that, of the this afternoon came as no surprise. There are also 2 million poorly paid people who will be lifted out of hidden messages in the Budget: those who are poor and income tax, a huge proportion—[Interruption.] whose income is being squeezed are being asked to work longer; but for those in the top income bracket, the message is, “Let us ease your pain. We’ve reduced Mr Deputy Speaker (Mr Lindsay Hoyle): Order. If your corporation tax bills, lowered your banker’s bonus the hon. Gentleman wishes to make a speech, he should tax, now let’s cut your income tax rate.” put in for it. He is not going to do it through an intervention. Robert Flello (Stoke-on-Trent South) (Lab): Was not another thing sneaked through the Budget quickly and Ann McKechin: I am grateful, Mr Deputy Speaker. carefully: the more than £1 billion hit that British The hon. Gentleman should remember that under this pensioners will take as a result of the announcement on Government, unemployment among women is at its “simplifying” personal allowances for pensioners? highest for more than 23 years. The Chancellor did not make one mention of what he will do about that scandal. Ann McKechin: My hon. Friend has cleverly noted The Lib Dem part of the Government has made that hidden message, to which, I am sure, the Chancellor great play of the increase in personal allowances, but was keen to avoid drawing attention. However, pensioners more than 70% of that benefits higher and middle are not as daft as he thinks, and I think that they will earners and fails to benefit those at the lowest levels, soon reckon that they are paying for the millionaires’ who already do not pay income tax. I point out to the tax bonus announced today. hon. Member for Cambridge (Dr Huppert) that, funnily There has also been complete radio silence on other enough, the majority of them are women. matters: women, for example, or children. By any rational While middle earners stand to gain £379 when the definition, the Budget has not only ducked the hard threshold reaches £10,000, low earners on housing benefit issues, but entrenched the division in our society. and council tax benefit will gain only a paltry £57, as the rest will be tapered away. Overturning the perverse Robert Halfon (Harlow) (Con): For 13 years of the reductions in tax credits, which increased child care Labour Government, the millionaires’ tax rate that the costs and penalised those trying to work on the lowest hon. Lady mentioned was at 40%. That was changed income scales, would have helped those in need the only in the last stage, and it is now 45%. Why was it most. As my hon. Friend the Member for Stoke-on-Trent 40% for so long while she was in office? South (Robert Flello) said, pensioners will also bear the burden as the years go on. Ann McKechin: As even the Chancellor would admit, It is estimated that the reduction in tax credits on the economy was very different. [Interruption.] We had child care from 80% to 70% has pushed tens of thousands job growth and we were taking people out of poverty—that of parents out of the labour market, with 44,000 fewer was the difference, which the hon. Gentleman seems to families claiming support in December 2011 than in have completely failed to realise. April that year. We have a Chancellor who thinks that it should be no problem for a cleaner to increase their The Chancellor must by now be all too aware of the hours from 16 to 24 hours a week to claim tax credits. criticism levelled at his efforts in the past two years. Frankly, that is the reaction of someone living in a Women were left paying more than 72% of the net cost parallel universe, who fails to listen to those who have of the changes in taxes, benefits and tax credits in his to attempt the challenge at a time when overtime and June 2010 Budget, and the subsequent comprehensive extra hours are almost impossible in most low earning spending review ushered in yet more of a burden on jobs. As the Union of Shop, Distributive and Allied women and families. Of the £18.3 billion raised through Workers reported yesterday, two thirds of those already net direct tax, pay and pension changes up to now, receiving tax credits who are about to lose them next £13.2 billion is coming from women. For children, the month already live in poverty: 200,000 couples with position is even worse. If we are to reach the target set in children face losing £3,870 per annum and an extra the Child Poverty Act 2010, the Government need to 80,000 children will be pushed into poverty by this one reduce the number of children in poverty by 120,000 per measure. It is immoral, unfair and unjust. I wait to see if annum. anyone on the Government Benches can mount any argument to support such an outrageous measure, given Dr Julian Huppert (Cambridge) (LD): Will the hon. that it completely fails their own core test of making Lady give way? work pay in every case. Even at this late stage, I hope that the Government will see sense and postpone the Ann McKechin: In a minute. The Institute for Fiscal measure until universal credit is in place. If we are all in Studies has told the Government that their current it together, why was there no mention of that today? It policies will see poverty increasing by 100,000 people a is a scandal of the Budget. year. What does it say about a country when it allows As the STUC pointed out in its Budget submission, it tax cuts for the richest but at the same time allows more is now indisputable that Government policy is hitting of its children’s lives to be stunted? I will be interested to wages much harder than profits. Indeed, as I pointed hear what the hon. Gentleman has to say about that. out at last week’s Business, Innovation and Skills questions, 819 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 820 Situation Situation [Ann McKechin] tax; I want them to get better-paid jobs so that they are in a position to pay tax. That is the fundamental problem, UK companies are now sitting on the highest ratio of and taking people out of tax is an acceptance of it. Far cash reserves of any major western economy. That is too many people work in jobs that are too low-paid, but not only unfair, but bad economics. We need more of we are not doing anything about it. those profits to be converted into real investment, and As the Joseph Rowntree Foundation and others have we need a much greater rise in consumption if we are repeatedly pointed out, we have a high level of under- ever to achieve the necessary higher growth. employment in this country—4 million to 6 million The Government’s austerity plan has led to lower tax people are in that category. The Scottish TUC has receipts and further downward revisions of growth, calculated that more than 0.5 million people, or more which is exactly the opposite of what we need. The than 17%, are either unemployed or under-employed. Business Secretary has asked for a report on how to Tax and benefit changes do nothing to change that release company cash reserves. I welcome that, but I long-term lack of demand for jobs. detect a complete lack of focus or priority in tackling The Government had the opportunity today to move the issue, just as I do in efforts to achieve a coherent away from their failed policy of austerity and to focus industrial policy. Where is the Budget to create jobs? on stimulus for growth and jobs. They have failed, but Where is the analysis to explain why, in the past year, the consequences will stay with this country and the female unemployment in Scotland and across the UK communities we represent for many years to come. I am has increased by more than 17% , but male employment sure that point will depress many hon. Members, and it has increased by only l%? Where is the analysis on the should depress all hon. Members on both sides of the increasing move into involuntary part-time working? House. Where is the analysis and policy on how to shift jobs into the industrial and manufacturing sectors, and to 2.13 pm retrain those who have lost their jobs to enable them Mr John Redwood (Wokingham) (Con): I fully support once more to hold down secure employment? Answer is the Government’s aim. We need to earn our way out of there none. the fiscal crisis, the massive over-borrowing and the The fact that we now have the highest female large deficits. I also fully support their aim to get more unemployment in 23 years was ignored in today’s Budget money from taxing the rich, and we need a tax break for speech. That is not going to go away, and I fear that the everybody else. We need a stimulus to demand and consequences have been heavily underestimated by the growth in this country and it is welcome that, given the Government, economists and our media. Far more difficult figures before the Chancellor today and the women work in the public sector, and increasingly, men situation he inherited, he has managed to find a way of enter and compete for traditionally female-dominated cutting tax for most people. That will be welcome relief work in the private sector. We are told that three quarters from the relentless pressures on private budgets that of public sector reductions are still to come, with the hon. Members and their constituents have been experiencing inevitable contraction of the work force, but there is as we try to climb out of the crisis. absolutely no planning on how to create new jobs for It would be helpful to remind the House of the the many women who will seek work. general shape of the five-year programme to try to get Announcements on infrastructure are welcome, but the deficit down. We want to get to a position in which construction jobs are entirely male dominated. Only we are adding less to the new borrowing. It is not that about 1% of electricians are female, for example, and we are paying off the debt or dealing with the nation’s we have the lowest proportion of female engineering mortgage and credit card; we are just not flexing them professionals of any EU nation, at less than 9%. The quite as much as before. The Government have said Government need to use procurement in such a way that, over the five-year period of the planned coalition that will encourage and increase the numbers of women. Government, they wish to increase current public spending There is an example for them to follow—the Olympic by £90 billion and tax revenues by £174 billion a year by Delivery Authority has got more than 1,000 women the fifth year of the programme, compared with the last into work in construction jobs—and I want to ensure Labour year. The House can see that, on most normal that that good practice is followed throughout every ways of looking at the situation, the plan is for the major Government procurement programme to come. heavy lifting of getting the deficit down to be done by a very large increase in tax revenues. Charlie Elphicke (Dover) (Con): I agree with the hon. Those tax revenues best roll in if the economy grows Lady that we need more women in work, and to look reasonably rapidly. The more quickly the economy grows, after women and take them out of tax, which is what the easier and less hurtful it is to get money out of the Government are doing. Nevertheless, she mentions people; the less the economy grows, the more the choices jobs. In her constituency in the last Parliament, become difficult. unemployment increased by 44%; in this Parliament it Barry Gardiner (Brent North) (Lab): The right hon. has hardly changed. Does she agree that the previous Gentleman says that the heavy lifting will be done by Labour Government’s policies caused massive damage the rise in tax, but does he accept that there is a ratio of to this country? 4:1 in the amount that will come from cuts in public spending and benefits to the amount that will come Ann McKechin: The hon. Gentleman distorts the from tax rises? employment figures in my constituency and my city, where jobs were growing before this Government started Mr Redwood: I have just given the figures—they are to suppress demand and consumption and to take away taken from past and current Red Books—and the hon. huge amounts in benefit. I do not want women out of Gentleman must make his judgment. I am giving the 821 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 822 Situation Situation House my interpretation. Most people who see spending Labour party, but the Leader of the Opposition seemed going up by £90 billion and revenue going up by £174 billion to say that it was not fair, because some rich people will say that the increase in revenue is doing the job of would still get away with it. However, if we get enough bringing the deficit down. If he compares that with or more out of them overall, is that not worth while? Labour’s plans for even bigger increases in public spending, Surely even Labour would accept that if we raise rates he can make a case. He may also have in mind—we have too high, the very rich go away—they find ways around debated this in the House before—whether the cuts are paying the tax or do not pay. real or not. Some programmes will experience real cuts. Labour in opposition does not take that seriously We know that because there is a much slower rate of enough, but the former Chancellor and Prime Minister, growth in cash spending than anything this country has the right hon. Member for Kirkcaldy and Cowdenbeath been used to for a very long time. (Mr Brown), took it very seriously when he was in If debt interest takes too much of the extra money, office. As Chancellor, he had the option of putting the and if welfare benefits take too much, other things will 40% rate up to 45% or 50%, or the 83% that Labour had obviously be squeezed more, which could lead to very when previously in office, but he never chose to do it. I unpleasant consequences. That is even more reason why wish he were here today. If he were, I would ask him, the Government are right to try to get the deficit down, “Why not?” I think his answer to Labour groups around so that we do not keep on increasing the debt at such a the country is, reportedly, that had he raised it above huge rate, and why they are right to keep official interest 40%, he would have raised less money in taxation rather rates low—that helps with the cost of the deficit. It is than more. Naturally he wanted to get more out of the also why they are right that we need to earn our way out rich—on that I agree with him entirely—but the way to of the situation by getting many more people back into do that was to keep the rate at a sensible level. decent jobs, so that they are paid more in work than The Opposition should study the figures for tax receipts. they are paid on benefit. Surely the whole House can If they look in the new Red Book, they will see that agree on that and share that aspiration. self-assessment income tax is plunging this year. That is exactly the problem that my right hon. Friend the Sheila Gilmore (Edinburgh East) (Lab): We obviously Chancellor has to tackle. Under Labour, self-assessment want to get more people into jobs, but will the right taxation at 40%—the then rate—brought in £22.5 billion hon. Gentleman comment on something the Prime at its best, before it made a mess of the economy. The Minister said in Prime Minister’s questions? He said forecast for 2010-11 out-turn is £22 billion, and the that 600,000 new private sector jobs had been created forecast for the 2011-12 out-turn—soon to be seen—is since the election, but a year ago he said that 500,000 only £20 billion. That means that the Treasury now new private sector jobs had been created since the expects a 10% reduction in self-assessment income tax election, and three months before that he said that receipts, which is where many of the high earners congregate 500,000 new jobs had been created since the election. Is with their complicated tax affairs. Those, then, who not the rate of creation of new jobs slowing down think that a 50p rate raises a lot more money have a lot massively under this Government? of explaining to do given that we are in the middle of this collapse. Mr Redwood: We all know from the output and jobs figures that the economy did not do as well at the end of Dame Joan Ruddock: Will the right hon. Gentleman last year as it had done at other times since the Government give way? were elected, but we also know that the forecasts are that growth will now pick up. I am sure the hon. Lady will welcome that and join me in having a serious debate Mr Redwood: I am sorry but I will not get any more on what this Parliament can do to make it more likely time, so I am afraid I cannot. that my constituents and hers have jobs, and more likely If the Opposition study the Red Book, they will also that they are better-paid jobs. see that when the 45p rate is firmly up and running, The question whether real public spending is falling there will be a surge in revenues compared with the or not depends on the rate of inflation in the public current bitter experience with 50p. Self-assessment income sector, so I urge again that we take advantage of the tax is scheduled to rise to £28.5 billion by the last year tough times. There is a two-year pay freeze for public of this Parliament, showing that, according to the Treasury’s sector workers, and the Government say that they are own model, growth is expected. However, I think we buying things more cheaply throughout the public sector. will see a much disrupted experience of tax collection In addition, there are recessionary conditions in Europe now, because if we give advance warning of a new lower and other parts of the world. If we take advantage of rate, we might have a problem in the year before, but we those things, it should mean that we do not have to have will have to see—we will watch with great interest. big real cuts in spending, because we will have that Overall, however, the House should note that there £90 billion per annum to spend by the fifth year of the are difficulties with getting the massive increase in taxation strategy. from the country which everyone wants. According to However, we should focus today on taxation, which is the current receipts table, there has been slippage every clearly what the Leader of the Opposition wanted to year in the current receipts forecast under national focus on. I do not think he listened to the Budget speech accounts taxes compared with the autumn statement. or the numbers he was told, because my right hon. Some of that, of course, is the result of the policy Friend the Chancellor made it very clear that he had change on lower tax designed to help people—we welcome come up with a series of targeted measures to tax the that very much—but we have to understand that it is very rich more than if he had not made the changes. very difficult to get as much tax out of the economy as That is fine by me, and I would hope it is fine by the many MPs would seem to like. 823 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 824 Situation Situation [Mr Redwood] 2.25 pm Derek Twigg (Halton) (Lab): I am grateful for the The Government are right to want a Budget for opportunity to speak in this debate. As always for the aspiration; they are right to want a Budget that allows first speakers, the devil will be in the detail—as we pore us to earn our way out of this situation; and they are over the Budget booklets to see what the Chancellor right that we need to make it more worthwhile to work. actually said and what it means to ordinary people. It is I hope that they will reinforce that message in future certainly clear, however, that it is not a Budget for Budgets. Since the 1970s, in which time we have had fairness or growth. As the Leader of the Opposition Labour Governments as well as Conservative and coalition made clear, the cut in the 50p tax rate is a cut for Governments, no Government have ever been able to millionaires—not least, of course, for rich bankers. raise more than 38% of the total national income from taxes. I am sure that Labour would like to try it, but rose— actually the record shows that Conservatives have taxed Several hon. Members a bit more as a percentage of national income than Labour—normally because they have had to clear up Derek Twigg: I have just started. Can hon. Members the mess, the debts and the deficits that they have hang on a second? I am sorry to excite them so much. I inherited. am happy to give way to one of them in a minute. As we heard today, it is also a cut for many in the There is a natural ceiling on how much we can get out Cabinet. It is a £40,000-plus tax cut for millionaires—an of people in a free economy. When we have a footloose amazing amount. international economy, it is all too easy for the people with talent and money—Labour might not like them—to Charlie Elphicke: The hon. Gentleman said that this go somewhere else, spend their money somewhere else is a tax cut for millionaires. If Labour feels so strongly and invest in jobs somewhere else. We desperately need about this, why has the shadow Chief Secretary just every job that we can get, and we desperately need the been on the television refusing to commit to scrapping good will of those with money, talent, entrepreneurial it? Does he regret that and think that she should rethink flare and ability. We also need the money of some of that position? those who do not have any of the above—we still want them here and to ensure that they spend their money Derek Twigg: We are here to discuss the Chancellor’s here. Budget. He is suggesting that it is a fair Budget that The Budget therefore has to concentrate on the crucial helps particularly low-paid people, but, as we have seen, issues of how we reward aspiration and generate true it helps the richest, not least some on his own Benches. prosperity. A much greater man than I, I think, said, Let us be clear about that. “Youcannot tax a country into prosperity.”This country Again, on personal allowances, we need to look at the is not short of taxes. Governments have been incredibly detail. Let us consider the cuts to working family tax inventive in finding all sorts of ways of taking money credits and the loss of child benefit. On the latter, by the off people. They are taxed again and again and again—on way, the Chancellor used the phrase “cliff edge”, but we income, on spending, on savings, on capital gain. There are still on the cliff edge—it is just a bit more complicated are endless taxes. We are not short of taxes. We do not to get to it. That is the big change. Then there is the cost need new taxes. We need a growing economy and to of living—energy prices, food prices and, interestingly, persuade people to pay the taxes that we have put in petrol prices. The Chancellor used to attack Labour place trying to pay for the public services. over petrol prices when we were in government. I remember the fuel tax demonstrations. We have not seen many of We want great public services but we need to understand them recently but the Chancellor has done nothing to the language of priorities. I think those priorities are ease the burden. We know what he did for VAT. That is shared across the House. Both Labour and Conservative what added to the cost of petrol and fuel for the people Members would choose to make health and education of this country. But the Chancellor did nothing. Many their top priorities for public spending. The last Government of my constituents have written to me asking that the certainly did that with large sums of money, and this Chancellor do something about it, so they will be Government are doing it with what money they can bitterly disappointed today. find. However, I also hope we would agree—this is more difficult when Labour are in opposition—that we need Brandon Lewis (Great Yarmouth) (Con): Does the reform of those public services so that every pound we hon. Gentleman not agree that the Chancellor has done spend is a pound well spent. We need to increase something about fuel duty by cutting the increases productivity and quality, and get more for our money, proposed by the previous Government? because everyone has to accept that times are hard and the amount of money available will be limited. Derek Twigg: We can go back to the fuel escalator The Front-Bench team need to do all they said in the and see who introduced that in the first place. The fact Budget to promote growth; they need to do more to sort is that the Chancellor put VAT up, and that has been a out the banks because until we have properly functioning major problem for people having to pay the extra, but and competitive banks—super-charged to lend against of course the Chancellor has ignored that and done good projects—we will not go as quickly as we would nothing. like; and they need to ensure that every pound they The Budget does nothing for growth. We need growth spend in the public service is well spent. That is the way in the economy to provide jobs and investment in to earn our way out of the crisis and into prosperity. We businesses around the country. Someone said that all cannot tax our way into prosperity but we can earn our politics is local, and I will return in a minute to the way there. specific issue and how it affects my constituency.Borrowing 825 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 826 Situation Situation is £158 billion more than planned, and today we see because of the cuts. That compares with £28 a head for that the February borrowing figures are much higher the much more prosperous Cheshire West and the city than expected, despite some of the spin beforehand. of Chester, and a loss of £19.32 for Cheshire East. Let me turn to unemployment, which is a crucial Guess who is one of the MPs in Cheshire East? Surprise, issue for my constituents. Unemployment has increased surprise: the Chancellor. The 27th most deprived borough in my constituency, with a significant increase in the will face the largest cut in local government expenditure latest figures, not least in youth unemployment. Many among those authorities. I am amazed—although I hundreds of young people are not being given the should not be amazed, really—that the Liberal Democrats chance for employment in my constituency, because the are going along with this deliberate attempt by the Government have no growth policy. Their policies are Tories to push money out to Tory authorities at the not having an impact in my constituency in terms of expense of the most deprived areas in the country. providing the additional jobs and growth that are needed. Why is this issue important? It is important not just I have had more and more people come to me personally so that local authorities can maintain crucial services to ask specifically what the Government are doing—and such as education, social services, development and so what I am doing, as well—to help young people who are on—many people on low incomes are particularly affected unemployed. I had a mother come to my surgery a by cuts to those services—but so that local authorities couple of months ago who has two young sons who are such as Halton can regenerate and attract businesses to unemployed and who are desperately trying to get jobs. their areas. Indeed, Halton borough council has been It is all very well for the Chancellor and the Prime particularly good at attracting development—it was Minister to talk about how we should clamp down on mentioned the other day in a BBC report—whether in the benefits system to encourage work, but people shopping and retail facilities, or development by other cannot find work in many instances. That is an important businesses, such as Stobart and Tesco, which opened up point that we should bear in mind. a chilled warehouse that is a large employer. Halton has Small businesses have been mentioned already. I have been particularly good, including on planning and trying raised this issue on a number of occasions with the to encourage business. Chancellor; indeed, he was even gracious enough to say The Chancellor talked about trying to reform the that he had listened to some of the points that I had planning system to ensure that local authorities do made in announcing today’s initiative to help bank more to secure investment and attract businesses to this lending to small businesses. However, let me give hon. country, and, of course, to their localities. We have Members two examples of problems in my constituency. fantastic opportunities in Halton, not only in our retail One company was unfortunately left with a large debt facilities or the developments by Stobart, but in business after the larger contractor it was working for went out development, in areas such as the Heath business park, of business. The company still had a full order book, which is one of the foremost business parks in the but the bank refused to lend it money—a scandalous region, and Daresbury laboratory, which Labour saved situation. Another example, which is just as scandalous, from closure and invested in and, I am pleased to say, is that of a business person in my constituency who whose science and business development the current needed an overdraft for one day because of a short-term Government are continuing to invest in. Our local authority problem. However, the banks refused to grant it. has been able to achieve much in difficult times. A lot of We shall see whether the Chancellor’s initiative will that was put in place thanks to investment by the last work in getting banks to give more help to small businesses, Government. However, the cuts made by this Government but my worry is that although those businesses that are are having a negative impact and will cause councils able, much more established and probably in a stronger around the country a great deal of problems. position may be able to get the money quite easily, the Interestingly again, there was no mention of the businesses that are struggling—the ones that are riskier NHS in the Budget. That is no surprise. The Liberal to lend to—are the ones that we should be helping in Democrats have now supported the Health and Social particular. We will wait and see whether the Chancellor’s Care Bill, which we have heard so much about. I have to initiatives today will help those businesses. With the say to them that every other month we get new recruits right help, a lot of those businesses can survive and joining the Halton Labour party from their party, because maintain or increase employment. The message that I they are fed up with the Liberal Democrats’ support for have been receiving from small businesses in my area is the policies of this Tory Government. In fact, people that they have not been getting help from the banks. I can no longer see the difference between Tories and hope that the Chancellor’s initiative today will make a Liberal Democrats, which is why—I am guessing—Liberal positive impact. However, I remain sceptical because of Democrats in my constituency are saying that what they his previous announcements on trying to address the are doing is a disgrace. problem. When I mentioned it to the Business Secretary I want to say a couple of things about infrastructure. even last week, he said, “Yes, it is a problem.” That was I agree with the Government that investment in his answer. We need real energy from the Government infrastructure is crucial to give the economy a boost on helping small businesses. I therefore look forward to and attract more investment, not least from overseas. seeing whether this initiative works in the way the With the Olympic games, Crossrail and so forth, we Chancellor has outlined today, although I remain sceptical. have seen massive investment in London and the south-east. We heard nothing about local government in the That will of course benefit certain parts of the country, Budget. We have talked about fairness, so let me give but it will not deliver major benefits to areas in the some examples of unfairness in the way local government north-west such as Halton. On the credit side for the is funded—a crucial area that impacts on jobs, investment, Government, they have given the go-ahead to the Mersey planning and other issues. In Halton, for instance, we Gateway bridge in Halton—a scheme, by the way, that will be losing £44 a head in the next financial year was started under Labour and supported by Labour, 827 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 828 Situation Situation [Derek Twigg] was taking place through aggressive tax avoidance schemes. All three of those objectives have been met by the and signed off by the coalition some 18 months in Chancellor’s Budget. government. The project will help to provide up to Two years ago, we were all about to go out on to the 4,000 to 5,000 jobs in the Merseyside and Cheshire streets to start the general election campaign. The Liberal areas. We have all-party support for the scheme, which Democrats’ No. 1 priority at the time was to achieve in will be crucial for encouraging investment in my area, as this Parliament tax-free pay for all our fellow citizens well as the wider Merseyside and Cheshire areas. However, earning less than £10,000. That objective is in the coalition it will also provide hundreds of construction jobs, which agreement, and significant progress has already been will be important, as we have a particular difficulty with made towards achieving it. the construction industry at the moment. At the same time, however, the Government are taking Dame Joan Ruddock: The hon. Gentleman is part of the lion’s share of any toll revenue over and above what a Government who have voted to reduce the income of is projected, as well as any savings on the project, and the average family with children by £530 from the they are also limiting the discounts that the council can beginning of next month. There is no measure in the give to local people. It is important that local people, Budget that will make up for that, and frankly, people who use the current crossing for free, should get big in my constituency will see it as an insult to their discounts or pay nothing at all. I have already written to intelligence. the Government, but we cannot get a proper answer to why they are doing that. Why should they take the lion’s Stephen Williams: The right hon. Lady will hear as I share of any additional income or savings? They should make progress through my speech that working families be ploughed back into Halton, so that local people can up and down the country, with or without children, will be given bigger discounts. benefit significantly from the tax changes that the My final point is about town centres and shopping Government are making. centres. I did not hear much from the Government In the current tax year, we have raised the allowance about how they are going to encourage the regeneration from £6,475 to £7,475, lifting 800,000 people out of the of town centres. We had a debate in this place a number income tax net altogether and providing a £200 tax cut of weeks ago, and I did not hear much in that either. for every basic rate taxpayer. For various reasons, areas such as Widnes in my constituency have done well at improving their town Stewart Hosie (Dundee East) (SNP): Before the hon. centres and developing their shopping and leisure facilities. Gentleman continues with his party political broadcast, However, as I mentioned in a previous speech, Runcorn may I ask him to look at his own Government’s Budget? is struggling to regenerate its town centre, for various Every single quintile will still be worse off after the reasons that I do not have time to go into today. Budget. It is in the Red Book. He is wrong. Runcorn has potential, not least the attraction of its waterways, but the Government have had nothing to Stephen Williams: These are extraordinarily difficult say about that. What we want to hear from them is what times, and none of us has ever shied away from the fact they are going to do, in real monetary terms, to help that we are in a tight fiscal squeeze or that there is a town centres such as Runcorn. tight squeeze on family budgets. That is why it is important that we put more of people’s own money back into their pockets through the tax changes that we are introducing. 2.38 pm When the next tax year starts in two weeks’ time, the Stephen Williams (Bristol West) (LD): All Budgets personal allowance will rise again, to £8,105, lifting are packages, and all of them are balancing acts, and 1.1 million people out of taxation altogether and providing that is particularly true of a Budget presented by a a tax cut of £330. Also in two weeks’ time, as well as Chancellor in a coalition Government. It is fairly clear those tax changes, the largest pension increase for a for all to see, in bold primary colours, which are the century will have been delivered by this coalition yellow and which are the blue packages in this particular Government. Budget. What is also clear is the string that binds together this Budget and this coalition Government: Teresa Pearce (Erith and Thamesmead) (Lab): Will reducing our deficit from the position that we inherited, the hon. Gentleman give way? where £1 in every four was being borrowed; restoring our economy to balanced and sustainable growth; restoring Stephen Williams: I cannot give way any more. and maintaining confidence in the international markets; In this Budget, our Liberal Democrat priority was to and bringing about a fair tax system that rewards work move further and faster towards our goal of £10,000 tax-free and enterprise, and taxes wealth. Labour borrowed us pay. Liberal Democrats in the coalition Government all into the mess that we inherited in 2010, but under the are therefore delighted by the confirmation that the rise coalition Government, Britain will earn its way back to in the personal allowance of £1,100 will proceed in prosperity. April 2013. It is the largest rise in the personal allowance As Liberal Democrats in the coalition, we wanted for 30 years—that is, in all our working lifetimes. In three tax changes in this Budget. First, we wanted a fair April 2013, people will be able to earn £9,205 without income tax system that would lift the low-paid out of paying tax, which will lift a further 840,000 people out tax and bring about a tax break for middle earners. of tax. Over three years, 2 million British people will Secondly, we wanted a system that would tax accumulated have been raised out of income tax. That will help and unearned wealth fairly and effectively. Thirdly, we everyone who works part time, the majority of whom wanted action to tackle the abuse of the tax system that are women. The measures will lift young people on the 829 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 830 Situation Situation minimum wage out of income tax altogether, and 24 million Friend the Member for Eastleigh (Chris Huhne), when basic rate taxpayers will be better off to the tune of he was Secretary of State, and which is now being taken £546. These changes will allow people to keep more of forward by the Secretary of State for Energy and Climate their own money. They will inject spending power into Change, my right hon. Friend the Member for Kingston local economies and they will make work pay. and Surbiton (Mr Davey). Last weekend, I witnessed As the front page of the Liberal Democrat manifesto the demonstration projects that are already taking place promised, we have delivered more than £500 into the in my constituency under the Bristol Green Doors pockets and purses of Britain as a result of this Budget. initiative, which are showing what every householder It will have been obvious from the fact that my colleagues can do to take advantage of the green deal. Also in were waving their Order Papers earlier that we are 2012, the green investment bank will be making its first extremely pleased to have achieved that. Let us contrast investments. it with the last Budget under the leadership of the right The creative industries are incredibly important to hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown), our national economy, and I was pleased that video when Labour MPs waved their Order Papers following games were given recognition in the Budget. As a Bristol the abolition of the 10p tax rate. There could not be a and west country MP, I was particularly pleased to see greater contrast between the priorities of this coalition the extension of film tax credits to the television industry. Government and those of the last Labour Government. The Chancellor mentioned Wallace and Gromit. Despite Wallace’s Lancashire accent, their home is of course Charlie Elphicke: Does my hon. Friend agree that this Bristol. The films are made in my constituency by Budget shows how effective partnership working can be Aardman Animations, Europe’s largest animation company. in the coalition? Has he seen chart B.1 in the Red Book, It is incredibly important to the economy of Bristol and which shows that those in the top decile—that is, the is a great British brand that sells millions of pounds of most well off—will experience the greatest reduction in exports all over the world. income? They are being made to pay, despite Labour’s 1970s class war rhetoric. Mr John Denham (Southampton, Itchen) (Lab): Will the hon. Gentleman tell me what the difference is between Stephen Williams: I shall come to how the Budget the tax breaks introduced by the Chancellor in today’s will affect the most well off in society shortly. Budget and the tax breaks introduced by Labour that Our second objective in the Budget was to rebalance the same Chancellor scrapped in 2010? the tax system, so that taxes would fall lightly on work and enterprise and more heavily and effectively on Stephen Williams: The difference, as I understand it, wealth. Already, this coalition Government have raised is that these tax breaks are going to be focused on capital gains tax from the historically low rates that we high-end television production, so that we no longer inherited from the last Labour Government, and there find ourselves in a situation in which “Coronation have been no changes to inheritance tax. Some people Street” can claim tax credits, as it did under the last might have wanted to drop the 50p tax rate altogether. Government. I do not think that there will ever be a risk However, we all know that 2012 is going be a difficult of “Coronation Street” moving to China, but there was year for families up and down the country, and Liberal a serious risk that Britain would lose its animation Democrats have been clear that now would not have industry to the rest of the world. These measures are been the right time to reduce the top rate of tax. I am right if we are to maintain British talent and innovation pleased that the Chancellor has agreed with our position. in this country, but it is also culturally right that children should watch programmes that have been made with By April 2013, our top rate of tax will be in line with the right regional accents and made around Great Britain. that of our competitor states in the European Union and the United States of America, but we will also have For Liberal Democrats in this coalition, the headline effective taxes on wealth in place by then. Stamp duty will of this Budget is that we have delivered a tax cut for be 7% on house sales of more than £2 million. We might millions of Britons and effective taxes on the wealth of not have got a mansion tax in this Budget, but we have millionaires. It is a Budget that maintains the confidence certainly got a mansion duty. That mansion duty alone— that Britain is back on track. It is a Budget that delivers just that one measure—will raise three times the amount the biggest tax break in a generation for millions of lost through the lowering of the 50p tax rate by 5p. hard-working families. As a Liberal Democrat in this coalition, I am proud of the role my party has played in The third objective that we set in this Budget was to making Britain a fairer country. take action on tax avoidance, and I am therefore pleased by the introduction of a 15% charge on personal property that is under corporate ownership. I am pleased that 2.50 pm tycoons will have the reliefs that they claim restricted to Mr John Denham (Southampton, Itchen) (Lab): My 25% of their income, and I am particularly pleased that morning newspaper today said that the coalition parties the general anti-avoidance rule for which I have argued were inviting me to regard this as a Robin Hood Budget. for so long is to be introduced by this Government. I see I enjoyed the stories of Robin Hood when I was younger, that rule as a kind of electric fence across the tax but I must have missed the bit where Robin goes back to system: a clear warning to every taxpayer that this is a Nottingham castle and says to the sheriff, “You look a line that they must not cross. bit hard up. Would you like some of your taxes back?” I The Budget makes further changes to rebalance the must have missed the bit, too, where Robin went to the economy, to restore green growth to the economy and front door of the cottage, cash in hand, while the rest of to build on Britain’s strengths in engineering and the the merry men went round the back and made off with creative industries. In 2012, we shall see the launch of the tax credits, the child benefit, the VAT and all the rest the green deal, which was spearheaded by my right hon. of it. 831 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 832 Situation Situation [Mr John Denham] Caroline Lucas (Brighton, Pavilion) (Green): Would the right hon. Gentleman add a fourth test to the three This Budget does not deliver what the Liberal Democrats that he has set out, which is whether or not this Budget or the Conservatives say it will deliver. The Government takes us in a more sustainable direction? On that measure, will fail on each of the three main tests that they have to the Chancellor started by saying that oil prices are of meet today. Of course, just a few minutes after the great concern, but what he has now done is to give a Budget statement, it is impossible to make a comprehensive huge tax break for more oil drilling. assessment of it, but I suspect that the detail of the pensioner tax changes will come as a deeply unpleasant Mr Denham: I am happy to include that test. One of surprise to Government Members who were waving the missed opportunities will turn out to be in the their Order Papers so cheerfully earlier on. low-carbon economy that will dominate the global economy in the 21st century. Teresa Pearce: It came as a surprise to me to read Things have turned out so much worse than in the through the detail of the impact assessment, which says heady days of the new Chancellor’s optimism when he that in 2013-14, 4.41 million people over 65 will be told us in his first speech that the economy was set to worse off because of the age allowance, and that 230,000 grow steadily; that unemployment would fall year on people will be brought into income tax. I wonder whether year; that the deficit would drop like a stone, yet front-line the Liberal Democrats will be proud of that. services would be protected; that the private sector would expand magically, more than filling the space left Mr Denham: I am grateful to my hon. Friend: by public services; that the banks would lend; and that 4.41 people—4.41 million older people—[Interruption.] the whole tiresome infrastructure of regional investment, Government Members may laugh, but they have just job guarantees for young people and a coherent planning cheered a Budget that is going to make more than system could simply be swept away. Well, the Chancellor, 4 million pensioners worse off, because they did not the Deputy Prime Minister, the Prime Minister and the understand what they were cheering. whole coalition were wrong. The Budget has three tests. The first is the immediate The spending cuts, drawing billions out of the economy, action needed to create growth and jobs in the economy, were too far and too fast. The Government’s gloomy to bring in taxes and to reduce the deficit. The second talk first unnerved and depressed consumers; then the challenge—even if the Government get the first right, VAT hike took money from them when we needed them painful times cannot be avoided—is to ensure that the to spend. Now the cuts are really beginning to bite. The burden of the challenges is shared fairly; in other words, Government were so cocksure and complacent that whether we get fairness in tough times. Does the Budget they strung together, purely for cynical political purposes, really say, “We’re all in it together,” or does it look after a series of half-baked, ineffective measures that were those already better placed to get through the next few more or less abandoned as soon as the last press release years more generously than those who struggle hardest? had been issued: the national insurance holiday; the There is a third challenge for this Budget. The Institute regional growth fund that does not pay out any money for Fiscal Studies made presentations to MPs this week. for months or years; the business growth fund with few It said that the slowing of growth since this Government investments; the special support for exporters with a were elected meant that even by 2016 the economy handful of users; the Work programme that does not would be 3.5% lower than it would otherwise have been work; Project Merlin; and the youth contract that has and perhaps 12% smaller in comparison with the growth not even started two years after the future jobs fund was rates of 2008. The Resolution Foundation, also drawing scrapped. Any right hon. or hon. Member who gets on the Office for Budget of Responsibility, calculates excited by any measures announced in a press release that disposable income for low and middle-income for this Budget should remember what happened to the households will fall by 8% between 2008 and 2015. last lot. What that means is that our economy will have fallen Opportunities were missed—to tax bank bonuses, to behind, our incomes will be lower and our capacity to fund real jobs for young people, to cut VAT for families, fund public services and social security will have been to cut national insurance contributions for small businesses reduced. I hazard a guess that nothing that has happened taking on staff, to bring forward infrastructure spending. today will change that grim picture by any significant But what did we get? Just a feasibility study on Monday degree. of this week, two years after the need was first identified. The third question, then, that the public will be No, the short-term measures have failed, and we have asking is how, after all this pain, we will pay our way in seen no change. an increasingly competitive world? If we cannot compete Fairness has been well debated today. Let us remember and cannot create wealth by succeeding in global markets, one point—in April, families with children, taking into we will never offer new opportunities and hope to those account the personal allowances and all the other changes, young people whom The Financial Times described on will be £530 worse off on average. When we look at next Saturday as “the jinxed generation”. The world economy year’s personal allowances, I am sure it will also be will have moved on massively and the challenge of clear, when the dust has settled and the IFS has done building British companies into those that can succeed the figures that take into account all the other changes, in ever-tougher global markets will be harder than ever. that those families will still be worse off. Hon. Members If we do not lay the foundations for that success now, it should look at the Red Book and see which families are will be harder to start later. going to pay a higher proportion of their income, and it The truth is that on each of those three tests—the is those on low incomes. immediate future, fairness and laying the foundations This Government have been mired in unfairness from for the future—the Chancellor’s speech gave little ground the beginning. We should remember that one of their for optimism. first actions was to cancel changes to pension tax relief, 833 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 834 Situation Situation which would have brought in £1.6 billion from the very the odd announcement and press release there does not highest earners in this country. We did not hear the match up to the job—not when we look at what our Chancellor reminding us of the things he has already competitors are doing. done to tilt the system to those best able to get through Today, we again heard about broadband, but what the next few years. I believe that the Government will did the former chief operating officer of BT say about pay the price for that. the Government’s broadband strategy in another place The truth is that it is not a matter of whether stamp just a couple of days ago? He said that it was so weak duty brings in more money or whether the anti-avoidance that this country will be measures—the Government should tackle avoidance in “frozen out of the next industrial revolution”. any case—brings in more money. The challenge for this Just because there is a mention in the Red Book about Government and this Budget was to devote every single the broadband strategy does not mean that there is one, available penny to raising the incomes of hard-pressed or that it is good enough, so it is a no on that third test, low and middle-income families and to get the economy which is probably the most crucial. growing. There was no justification for singling out the highest rate of income tax on earnings over £150,000 a The next few weeks, months and years will be hard year. The average person in work in my constituency for everybody. People in this country are stoic. They will have to work for seven and a half years to earn will tolerate a lot if they think that the right things are £150,000. To single out that higher-earning group and being done to build a future for their children and to cut their tax was wrong. families, and to give us long-term security.The Government do not have a clue how to create the conditions in which This was not the fairness in tough times that the investment will take place, business will grow, and we country needed, but the other failure in the Budget was pay our way and have the jobs and wealth that the the failure to lay the foundations for the economy that people of this country desire. The Budget is unfair, has we need in the future. The truth is that despite the missed opportunities, and will fail the country. pressure on the public finances, there is no shortage of money to rebuild the economy. UK companies are cash-rich. Sovereign wealth funds are out there. There 3.2 pm are pension funds, closer to home, with money to invest. Stephen Mosley (City of Chester) (Con): I welcome the measures that my right hon. Friend the Chancellor Charlie Elphicke rose— announced in his Budget—measures that continue to lay the foundations of an economy underpinned by Mr Denham: I will not give way, because I have only a enterprise, opportunity and wealth creation. The European few minutes left. The problem is that those bodies are and global economies have had a torrid time over the not investing, or at least not investing in Britain. The past two years, but the Chancellor has been unwavering reasons are clear: in the short term, Government mistakes in his commitment to bringing our spending and our have caused the economy to stagnate, and there is also deficit under control. Unless we do that, we have no no certainty—no “compelling vision”, as the Secretary chance of creating the future economic success that we of State for Business, Innovation and Skills rightly put all desire. I am delighted that the Chancellor is taking it. Some of us thought it was his job to come up with a strategic decisions on how our economy should evolve compelling vision, but he is right that it is not there. and compete in future. There is no predictability. Goodness knows it took my Government long enough Jane Ellison (Battersea) (Con): The right hon. Member to take a decision on Heathrow. That decision was then for Southampton, Itchen (Mr Denham) completely ignored cancelled, and then ruled out. Today in the Budget, we all the announcements about corporate tax rates. I find that Heathrow is back on the agenda. Billions of wonder whether my hon. Friend will cover those rates, pounds of business investment cannot take place because and the way that they incentivise business growth. of the failure of Governments to take that decision, one way or another. That uncertainty and unpredictability Stephen Mosley: Corporate tax rates, of course, are runs through the Government’s business failures. Low- one incredibly important area, but there are many others. carbon energy manufacturing and services will dominate In my speech, I shall concentrate on some of the issues the 21st-century global economy, but the Chancellor that the right hon. Member for Southampton, Itchen says that he does not like the environmental policies, (Mr Denham) talked about, to do with investment. while the Deputy Prime Minister says that he does. We Many people rightly ask, “How will we, in Britain, had illegal flip-flops on feed-in tariffs, which means that earn our living in the global marketplace of the future?” a whole group of investors will never come back and Like the Chancellor, I believe that there are sectors in invest in green energy again. Those on the Government which the UK can take a global lead, in which we have Benches have no idea that business needs certainty and the ability to excel, and that have the potential to predictability, not short-term changes. generate growth for future generations. The one that I We have today heard all that stuff about the oil will concentrate on is the digital economy. industry. In last year’s Budget, the Government massively The UK’s information technology and telecoms industry increased the risk penalties for investing in the North makes a gross value added contribution to the British sea by means of a last-minute political gimmick that economy of some £81 billion a year. That is around changed the tax regime that applied there; again, that 9% of the total economy—it is a very similar figure to meant uncertainty and unpredictability. Despite the that for the financial services industry. Around one in Chancellor’s words, there is no serious attempt to identify 20 members of the work force—1.5 million people—are the technologies and capabilities that will give us the employed in IT and telecoms. There are around ability to compete in future. The odd speech here and 100,000 unfilled job vacancies being advertised, and it is 835 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 836 Situation Situation [Stephen Mosley] ICT in schools. I was pleased to hear the Chancellor highlight the importance of education in building our estimated that more than 500,000 new IT and telecoms skills base, because if any industry hopes to compete professionals will be needed over the next five years. By and thrive, the fundamental basis is the skills base of exploiting the full potential of the technology industry, the domestic work force. My right hon. Friend the we could boost the UK economy by an additional Education Secretary recently announced a shake-up in £50 billion over the next seven years. the way that computing is taught in schools. That The Chancellor’s speech gave extremely encouraging follows calls from industry and academia, who suggest signs that investment in information and communications that ICT in schools is too focused on the use of specific technology is set to continue, but more needs to be done software packages, and not focused on the underlying if we are to harness our real potential to make our technologies or on learning the computer programming country a global leader in the digital economy. We have skills that will help to encourage young people to develop a world-class base from which to grow further, but we their own products and be on the cutting edge. require proactive engagement from the Government if Rebalancing the curriculum is a vital step, but there we are to speed up growth and increase the economic also needs to be greater emphasis on the quality of ICT potential of ICT businesses. We must be much more teaching in schools, along with a concerted effort to vigorous in promoting the industry to stimulate wider champion future careers in the sector. I have already and sustained economic growth. outlined the huge significance of IT for the wider UK economy, yet since 2002 there has been a 33% reduction Ian Lucas (Wrexham) (Lab): I am listening carefully in applications for computing degree courses. More to the hon. Gentleman’s speech, not least because he is must be done to encourage our young people into an my neighbour, and I agree with much of what he has ICT career if we are to reap all the potential benefits to said, but does he not regret that the Government put our economy. back the delivery of universal broadband by three years, from 2012 to 2015—two years after it will be delivered Diana Johnson (Kingston upon Hull North) (Lab): in Morocco, which I visited last week? Does the hon. Gentleman share my disappointment Stephen Mosley: If the hon. Gentleman, my neighbour, that the Education Secretary has not included ICT as will bear with me for 30 seconds, I will get to broadband. one of the core subjects in the English baccalaureate, and therefore as one of the key areas that our young Jake Berry (Rossendale and Darwen) (Con): That is people need to study? very fast. Stephen Mosley: The English baccalaureate covers Stephen Mosley: Ultra-fast is, I think, the current the key core skills we want people to learn. ICT is an term. Mr Deputy Speaker, I know that you have been important skill, but I do not think it should be included involved with the Parliamentary Internet Communications in the baccalaureate, which covers maths, English, basic and Technology Forum. We recently arranged a series sciences—the basics. IT is a highly skilled area. Some of meetings with parliamentarians and industry people might be suited to study it, but others might not. representatives, including the UK chief executive officers Those who have an aptitude for it should pursue it and of some the world’s leading IT businesses—for example, achieve. Facebook, Intel, IBM and Fujitsu, among many others. Thirdly, it is imperative that the UK trains and retains The universal message emanating from the meetings world-class individuals. Over the past decade, the UK was that the UK technology industry must be promoted has become a receiver of technology developed abroad, by Government whenever possible, and that greater which has slowed down the development of technology care is needed if the UK is to attract, train and retain in the UK. The overriding message coming from industry the highly skilled individuals who will help our economy is that the single most important criterion when deciding to grow. Specifically, five key recommendations were where to make new investment is whether the skills to made. The first had to do with the broadband issue: the support the investment are available in that location. Government must speed up the roll-out of superfast We have the broad skills base in this country to push on broadband. I totally support that, which is why I am and achieve great things, but without the right commitment absolutely delighted to welcome the Chancellor’s and investment—such as in ICT apprenticeships—the commitment to investing more than £780 million in UK risks being left behind by our global competitors. broadband infrastructure to make sure that Britain has the best superfast broadband network in Europe by Fourthly, we need a strategy to encourage the take-up 2015. I am also pleased about the Government’s of new technology by small and medium-sized enterprises, commitment to start the roll-out of 4G mobile networks, and to encourage their growth and development. with the spectrum auctions planned for later this year. Specifically, it was recommended that the Government can assist by encouraging venture capital investment for Mr Graham Stuart (Beverley and Holderness) (Con): the longer term. We have a huge wealth of talent in the Does my hon. Friend agree that we must reverse the UK but, in order for our entrepreneurs to grow their disastrous collapse in the number of graduates coming ideas into successful long-term businesses, they often out of universities with computer science degrees, which have to sell their ideas and businesses abroad. A prime took place over the last decade in which the previous example of that is the once globally dominant UK Government were in power? computer games industry, which is now mainly foreign- owned and seeing future investment disappearing offshore. Stephen Mosley: It is funny that my hon. Friend should I was therefore extremely pleased to hear that the Chancellor say that, because our group’s second recommendation will focus on that industry. If we want our smaller was that the Government should increase investment in businesses to flourish, we should be encouraging investment 837 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 838 Situation Situation to help nurture existing small businesses to become After all, does the Chancellor believe his own rhetoric? medium-sized businesses, and medium-sized businesses He says that both the deficit and debt have fallen as a to become large ones. percentage of GDP, that the public sector net debt peak I pay tribute to the Government for their catapult will not be as high as previously anticipated, and that centre programme. We in the UK have always been on we are on course for deficit reduction. He must therefore the cutting edge of technology, but our inability to know that his credibility in the international money transfer intellectual advances to market has often proved markets is sufficiently high for him to be able to invest to be a stumbling block. The new catapult centres will in projects that offer a rate of return and that could help help to commercialise the results of research in technology to promote economic growth, rather than merely pay areas where there is potential for multi-billion pound unemployment benefits. Either he does not believe his global markets, including the digital economy. That is own rhetoric, or else he is deliberately—perhaps for to be wholeheartedly welcomed. ideological reasons—holding back on what I believe could be an important means of investment. Finally, the Treasury must emphasise and reiterate the importance of technology to the economy and Secondly, I am concerned about a choice that has commit to the long-term opportunities that the sector been made. At a time when we are preaching austerity has to offer. We in the UK are attracting world leaders to people who are bleeding in that many of them cannot in new and emerging technologies to our shores. We pay their heating bills or their rent or buy food, it is have the skills base, the flexibility and the economic bizarre that the Government should choose to prioritise foundations to encourage more companies to invest reducing the top rate of tax for the top 2% of earners in here. The Government must champion the technology this country. That demonstrates a blatant disregard for sector more vigorously if we are to harness its great the very difficult sacrifices that we are asking people potential to act as the catalyst for long-term growth in to make. the United Kingdom. I am delighted that, as spelled out Let us consider how the money could have been in the Budget, the Chancellor and the Government are spent. There has been much argument today about now grasping that opportunity. whether or not the rich will pay more. The one thing that we do know, however, is that it has been calculated 3.13 pm that that reduction in the top rate of tax will immediately Sammy Wilson (East Antrim) (DUP): We all recognise release £3,010 million to the top 2% of wage earners. that the Chancellor has been confronted with a difficult The Government are relying on tax exiles flooding into task in this Budget. He has had to walk a tightrope: if the United Kingdom and beating on the door of Her he goes too far one way, our financial credibility is Majesty’s Revenue and Customs to ask, “May I pay my immediately questioned so interest rates have to rise, yet tax in the United Kingdom now?” The Treasury hide if he goes too far in the other direction, we impair our behind the theory of “behavioural assumptions”, but ability to earn our way out of the recession. we need only look at the literature to see that there are a My party does not have any political points to score lot of assumptions that may, or may not, be realised. against the Conservative party, as it is not represented The same situation applies for the money that could in Northern Ireland, so we simply want the Chancellor come from stamp duty and limits on the back claims. and the Government to succeed. That is the basis on The fact of the matter is that this money could have which I assess the Budget. Is this Budget likely to been used in a better way. For example, the Government achieve the objectives we all want: restored growth and could have used it to lower fuel duty, but despite the fact increasing employment? that fuel prices are going up, the Government are going Some of the Budget’s measures are very welcome. to take £800 million more off motorists in the United From a Northern Ireland perspective, we welcome the Kingdom this year. devolution of air passenger duty, which will be included in the Finance Bill. That will enable the Northern Jesse Norman (Hereford and South Herefordshire) Ireland Executive to set its own rate for long-haul direct (Con): I am thoroughly enjoying the hon. Gentleman’s flights from Northern Ireland, which is essential to our speech and would not wish to interrupt it for a second, investment strategy and to tourism. We also welcome but may I ask him what money he is referring to when the reduction in corporation tax as it brings our rate he talks about a better way of spending that money? closer to the rate in the Irish Republic, which is our What we know from the Treasury is that our top rate main competitor for foreign direct investment—although raised very little incremental cash and that reducing it is those rates are still far apart. We welcome, too, the film likely to raise more money from the same people. So and high-end TV tax concessions. We have been seeking what money is he talking about? to promote that industry in Northern Ireland. The Executive have pushed for that. “Game of Thrones” is Sammy Wilson: According to the Treasury, the direct now filmed in Northern Ireland, and it has been a big impact—the direct static cost—is going to be £3,010 million. revenue earner. We have also pushed for Belfast to be That is the figure that the Treasury has put out. Some of chosen as one of the broadband cities. that money will be offset by behavioural change, but However, although there is clearly much to be welcomed, that is based on assumptions about tax income elasticity I am concerned about three aspects of the Budget. and what happens to income. So real money will go First, the Government could spend more money on back to people who currently are top rate taxpayers. My infrastructure in the United Kingdom. That would argument is this: if the Government were going to enhance economic growth. Such pump-priming by the release that kind of fund, would it not be far better to Government could enable us to draw upon some of the release it either to bring more low-income families out funds—£700 billion in cash—that private companies of tax or to release the hard-pressed motorist from the are currently hoarding. fuel duty that is going to be imposed on them? 839 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 840 Situation Situation Ian Lucas: The hon. Gentleman is making a compelling However, it makes it far, far more difficult to say to case. Is he aware that just 4,000 taxpayers in Northern public sector workers that their wages are going to be Ireland earn more than £150,000 a year? frozen, to say to the ordinary citizen that they should tighten their belt and to say to people who live in Sammy Wilson: That is so, and I wish to discuss Northern Ireland that they have to go through these another measure in this Budget that will affect hundreds hard times when the Government are saying to those of thousands of people. who can most afford it, “We are asking you to loosen your belts. We are going to fill your pockets.” That is Mr Nigel Dodds (Belfast North) (DUP): The people exactly where the unfairness in this Budget lies. of Northern Ireland are grateful to my hon. Friend for For that reason, although I want the Government to the work he does as Finance Minister in Northern succeed, I believe that they have not taken the opportunity Ireland to move its economy forward. Does he agree to inject money into the economy. If they have credibility, that people up and down the country are terribly they should use it in the financial markets and borrow disappointed that the Budget contains no additional to invest in infrastructure, rather than paying people to measures to reduce the amount of fuel duty and VAT sit on the dole. If the Government want people to face on petrol and diesel, which, in Northern Ireland, is the up to the hard economic facts, they should do things highest in the entire European Union? fairly and not in a unjust and uneven way. If they want to be the Government for the United Kingdom, let us Sammy Wilson: The continuation of the measures make sure that some parts of the United Kingdom do that the Government have in the Budget already will not have to bear a bigger burden than others. take a further £800 million out of motorists’ pockets over the next year. 3.25 pm The final point I wish to discuss is the regional pay issue. Some people may regard what I am about to say Brandon Lewis (Great Yarmouth) (Con): I wish to as special pleading for Northern Ireland, but may I focus primarily on the Budget’s impact on business and remind hon. Members that this will have an impact on growth, but before doing so I wish to touch on one those who represent constituencies outside London and other area: duty stamping on alcohol. The Red Book the south-east of England? This measure will have an says that the Treasury will look to move forward with its impact on all the rest of the United Kingdom. Some consultation on duty stamping, and I welcome that have the idea that, because there is currently a difference important step. The wholesale industry estimates that between private sector and public sector wages—it is the revenue lost to the Treasury through the lack of important to make the point that the difference is duty stamping on beer alone is about £500 million a current—wages should be frozen for people in the public year and that the loss might be the same again in respect sector, so as to stimulate the private sector. I do not of wine. We need to consider beer and wine together, quite understand the economics behind that, because because the two products are clearly becoming competitors freezing wages in the public sector will have a deflationary and we cannot deal with one without looking at the impact, especially outside the south-east of England, other. Duty stamping on spirits is already in place and it given the prominence of the public sector not only in has not affected the sale of spirits and the industry, as Northern Ireland, but elsewhere. The areas of the United spirits sales in this country have increased by 8%. So it is Kingdom that are currently falling behind, even given really important to examine this area, in order to plug the slow rate of economic growth for the country as a another hole and get back for the Treasury some of the whole, will be the parts that will be most punished. This money that was wasted and spent by the previous is one of the most divisive measures that I have ever Government. heard about and it does not even address a problem, Such an approach will also have a knock-on benefit, because there is no evidence for it. We have 3 million as so much of the Budget does, for other Departments people unemployed and we are not recruiting in the and other areas. For example, a benefit to the health public sector, so how on earth are higher wages in the industry will result from a lack of the cheap alcohol public sector going to prevent private sector employers that can be found in small corner shops in some parts of from being able to find workers? This argument does our country. Such shops do not necessarily buy through not work. The impact of the measure will be very the legal market, taking advantage of alcohol for which detrimental. I hope that we will have an opportunity to the duty has not been paid and which is then sold re-examine that in much more detail in this House, cheaply to young people. We can cut that out, too; this because I believe it is one of the most pernicious measures has a big economic impact and a big health impact, and floated in this Budget. I welcome the move in the Budget. There are things that the Government could have done but have not done. There is an unfairness in this Jesse Norman: My hon. Friend may not be aware that Budget; it is an unfairness in respect of not only different I have just been granted a Westminster Hall debate next income groups, but different regions of the United Tuesday on precisely this issue, so I am extremely grateful Kingdom. I am a Unionist and I believe in the value of to him for introducing it in the main Chamber. the Union. I believe that it is important that, as part of the Union, we bear the burden when there is a problem. Brandon Lewis: I congratulate my hon. Friend on As my right hon. Friend the Member for Belfast North securing that debate and I look forward to joining him (Mr Dodds) mentioned, that is one of the reasons why, on Tuesday to discuss the issue in more detail. despite the unpopularity that this has probably led to in No Budget stands alone, and what is important about Northern Ireland, I have made the case that if there is this one is how it builds on what has been done in the an economic crisis facing the United Kingdom, we past couple of years, particularly for business. When we cannot ask to be exempt from the burden to be borne. consider how we want to move forward in having an 841 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 842 Situation Situation economy that grows, with more jobs and more prosperity Bob Stewart (Beckenham) (Con): Does my hon. Friend for all, it is important to remember that we need to share my hope that we can bring corporation tax down rebalance our economy and have growth in the private again next year? That would really help business. Does sector. So the moves that have been taken for business my hon. Friend agree? are hugely important, and the further lowering of corporation tax and the speeding up for that process is Brandon Lewis: Absolutely. That is why I welcome very welcome. It makes it very clear that our door is the Chancellor’s comment today. The further and the open for business. When private sector businesses grow, faster we can go on that, the more welcoming we will be they need more staff and more money. Less is then for business, and therefore jobs and economic growth. spent through the welfare state and our whole economy benefits. I have one other suggestion for the Treasury to consider The change in the top rate of tax, which gets rid of in the years ahead—how we deal with regulation. The the 50% rate, is also important. Apart from the economic changes to planning will be a massive advantage to arguments that have already been rehearsed today, that businesses. One of the attractions of the enterprise has a psychological impact. A message goes out to high zones is how they make planning so much easier by earners—the people who are business leaders and business freeing it up. We can do more on regulation. One in, one owners—that we value the work they do. People who out is a great aspiration, but it depends on what the one aspire to get to that position see that they can work coming in is. There is a strong argument for looking at hard, develop and grow their business, and benefit as the billions of pounds a year that business has to spend well. on dealing with regulations, and targeting a value figure to cut the cost of regulations in this country. Austin Mitchell (Great Grimsby) (Lab): Does the I welcome the Chancellor’s statement about creating hon. Gentleman accept that as well as giving those certainty for decommissioning, particularly for the oil people that possible incentive, the change also gives and gas industry. That will be widely welcomed by the them an incentive to spend more time on the golf industry and I am sure it will be welcome in Great course? Yarmouth, as we have a huge number of businesses working in that field, developing and investing massively Brandon Lewis: That shows a lack of understanding in our country and offering more jobs and more of how the business world and business leaders work. employment. It further builds on the opportunities for the New Anglia enterprise zone. Andrea Leadsom: Does my hon. Friend agree that it is To see the benefit for business, we need strong, growing, astonishing that the Opposition do not seem to realise improving infrastructure. I appreciate the work that the that it is the private sector, wealth generation and Government have done and the announcement last year incentives that create the income for the Exchequer that of the dualling of the A11, which will open up that enables us to pay for good, sound public services? corridor of economic growth right through East Anglia, particularly in Suffolk and Norfolk. I make a small plea Brandon Lewis: I thank my hon. Friend, who makes for something on which the Norfolk and Cambridgeshire an important and valid point. Members of Parliament are working closely—to open One of the important things that the Government up the spine that the A11 joins, with the full dualling of have done is to introduce enterprise zones. I appreciate the A47 from Great Yarmouth through to Peterborough. that I have an interest in that as chairman of the We will continue to build the case for that and the all-party group on enterprise zones and local growth, economic growth that it would bring. but they are hugely important. In the New Anglia enterprise The Budget brings further benefits through the mobile zone alone, we are looking at about 2,000 extra jobs in infrastructure fund. The A143 from Great Yarmouth to the next couple of years, growing possibly to 15,000 in Haverhill will benefit. The Growing Places fund will put just one enterprise zone in the East Anglia region that is almost £6 million into the New Anglia enterprise zone. focused on energy. Both of those provide more beneficial opportunities for It was pleasing to hear the Chancellor explain today business. As well as unlocking infrastructure growth, we that one of the industries on which the Government are should turn our attention to unlocking growth in the focused is energy. There are huge opportunities for construction industry, which is a huge employer. We growth for this country, with £50 billion of business need more homes and more infrastructure to be built. available to companies along the coastline of East Employees and customers must be able to get from Anglia. We have a whole energy offer and proximity to their base to the marketplace, and rail infrastructure the energy market that are almost unique. We are most can play an enormously important part in that. My often competing with countries overseas for that business, hon. Friend the Member for Mid Norfolk (George so it is hugely important to companies to understand Freeman) is working hard on some ideas about how to that the Government are supportive and want that take that forward. He is to be congratulated, and I business to be based here in this country. know he will speak in the House shortly. Through the The moves on corporation tax and capital allowances work being done by the Department for Transport and for enterprise zones are hugely important. I have a supported by the Treasury, we have a further opportunity couple of asks, to follow one from Prime Minister’s to unlock economic growth. We have just over 2,500 railway questions today. I make a plea to the Chancellor and stations across the country, many of which we would all the Treasury to look hard at whether we can extend that like to see regenerated and improved. Dealing with capital allowance opportunity to all enterprise zones to them as real estate rather than just as transport hubs provide a supercharged boost as they move forward to would allow us to unlock up to £27 billion of business growth. for the construction industry. 843 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 844 Situation Situation [Brandon Lewis] to £126 billion. The national debt, on the treaty calculation, was due to peak at 87.2% of GDP, or £1.2 trillion, in It is important that that kind of infrastructure develops 2013-14, but today it is now expected to peak at 92.7% and grows so that people can get to the marketplace of GDP in 2013-14, which is £1.36 trillion. quicker and businesses can transport their goods, products Therefore, there was not a great deal for the Chancellor and customers from their bases to where they need to be to be pleased about. That will, of course, allow him to faster. Broadband will open up communications and be claim that he is on track to meet his fiscal rules—that a hugely important part of that, particularly for areas, the structural current deficit should be in balance in the such as Norfolk, with rural hinterlands where the transport final year of a rolling five-year programme and that infrastructure is not as good as we would like it to be. debt is falling as a share of GDP by the end of that Broadband communication could make up for that period—but both those objectives are highly dependent deficit, so the target of 2015 is very welcome in Norfolk. on GDP growth, which, as we have noted in previous We have huge opportunities for growth. This Budget Budgets, is massively dependent, according to the OBR, knits together work done by a number of other on quite incredible, unbelievable and unmet rates of Departments and the past few Budgets and presents a business investment. real opportunity to encourage business to grow. It sends In 2010 the Government suggested that business a strong message to business that this country is not investment had to grow between 6.7% and 10.6% a year. only open for business, but clearly working hard to By the time we got to the OBR’s fiscal outlook in create the infrastructure and environment in which business November 2011 growth in business investment had and business people can flourish, and I welcome that turned negative for 2011 and the forecasts had been from the Treasury. changed to deliver business investment growth from 2012 to 2016 of 7.7% to 12.6% a year. What we expect 3.35 pm now, the Government having failed on all their measures Stewart Hosie (Dundee East) (SNP): I will start by so far, is business investment growth of between 6.4% and welcoming a couple of the measures announced today. 10.1% from 2013 onward. I am certain that when we get The Chancellor spoke about backing the creative media to the autumn statement and are looking at weaker sector, which has the potential to be very helpful for the numbers and next year’s Budget the Chancellor will games industry in Dundee. It is just a pity that the old simply fiddle and make more aggressive the business scheme was scrapped and we had to have a hiatus until growth investment figures for future years to pretend he this one was introduced. We will of course look at the is on target to meet his own rules. fine print to find out precisely what it does. I also That is why the OBR told us last autumn that the welcome the doubling of council tax relief for serving contribution of general Government consumption to service personnel, which some of my hon. Friends have UK GDP growth would be negative throughout the campaigned on for many years, and the Chancellor’s spending review period, and according to today’s Budget comment that he expects to see exports doubled. I hope it still will be. It is also why this coalition’s cuts are that when that work is under way the UK Government hugely damaging not least in Scotland, and the changes will work with Scottish Development International, over the spending review period that delivered an 11.3% real which is already working with nearly 10,000 businesses terms cut to Scotland and a 31.7% cut to the capital to internationalise their work. budget are barely altered by today’s announcements. At face value, the changes to the decommissioning Never letting the facts get in the way of a good attack scheme and the new field allowance for the North sea line, the Chancellor made the point that the UK are very welcome. Of course, that is a huge humiliation Government are able to borrow quite cheaply at the for the Chief Secretary to the Treasury, whose bright moment. What he did not mention, and this was genuinely idea it was to increase North sea taxation last year surprising, was the triple A rating that he normally uses without consulting the industry. However, I have to in that argument. I suspect that it is because he has point out that from 2013-14 onward the decommissioning worked out that, although the UK had its triple A scheme will actually bring in an additional £1.2 billion rating put under threat in February, it was paying an to the Exchequer and from 2014-15 onward the new amount of money in yield on its five-year, 10-year and field allowance will bring in £130 million. That might be 30-year bonds, while Japan, which had a net debt twice behavioural change; we will have to see precisely what it that of the UK and two double A negative ratings, was means. I also point out, in a gentle aside to the Liberals paying a fraction of the yield on its bonds. who have talked about how marvellous the Budget is, So, although I am very pleased that the UK is able to that in relation to the squeezed middle the threshold at borrow at reasonably god terms, I am pleased also that which people pay the 40p rate of tax will decrease next the Chancellor has abandoned his boasts about the year to just over £32,000—they have been not so much triple A rating, stopped fetishising it and is concentrating squeezed as almost halved by the actions of the on what really matters, which is the yield that the UK Government. pays. The Chancellor, unsurprisingly, sought to take credit for his stewardship of the economy, but before he and Jesse Norman: The hon. Gentleman is slightly his friends get carried away let us look at what he understating the case, is he not? The fact is that we are actually did. The deficit on the current budget for 2011 borrowing at extraordinarily low—historically low— was meant to be £104.8 billion, and it was forecast to be nominal yields, and, given the level of inflation, at even £90 billion for 2011-12. Today the forecast for 2011-12 lower real yields. That is a result of the deficit reduction was increased to £98 billion. The net borrowing requirement strategy that has been followed, and one reason why we was forecast to be £145.9 billion for 2010-11 and £122 billion should not fret about double or treble A ratings is that for 2011-12. Today the forecast for 2011-12 was increased the United States itself has been downgraded, as have 845 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 846 Situation Situation one or two other countries, and their borrowing costs Jake Berry rose— have not necessarily been affected. That is just a rational reaction to events in the capital markets. Stewart Hosie: I give way one last time. Stewart Hosie: One might also make the case that the Jake Berry: The hon. Gentleman is being extremely United States, with a fiscal stimulus programme, is generous in giving way. Before I came to this place, I borrowing money at negative real terms percentages. It worked in a law firm. We had three offices—one in has engaged in fiscal stimulus, not in the cut-and-burn Manchester, one in Liverpool and one in London. We approach of the UK Government, and, as the right all did the same job, but we were all paid different hon. Member for Doncaster North (Edward Miliband) salaries. Does the hon. Gentleman think that that was says, the US has succeeded where the UK is failing. wrong? Andrea Leadsom: Surely the hon. Gentleman agrees Stewart Hosie: That was in the private sector. I am that the US economy is not the same as the British sure that the hon. Gentleman would say that he would economy. The US benefits enormously from being a negotiate his own wages or join others in a union to foreign reserve currency, for example, so the situation is negotiate wages. We are talking about public service. If very different, and we cannot simply equate what happened the hon. Gentleman’s attitude is the same as that of his in the US with what happened in the UK. party’s Front Benchers, he will seem to be saying that a public servant in Dundee or Dudley is not worth the Stewart Hosie: The hon. Lady is obviously right that same as a public servant doing the same job in Dartmouth. we cannot draw a direct comparison, and that is why I That would be worrying. would not draw a direct comparison with the yield rates The real actions needed to kick-start the economy paid in Japan, but the point I was making is that it is were almost wholly absent from today’s statement. The wrong for any politician, particularly the Chancellor, to limited action on bank lending was announced yesterday imply that a credit rating agency’s score is in any way and we have heard many of the promises before. I hope related, or correlates directly, to the real yield that a that the national loan guarantee scheme works, but to Government pay. ensure that it does can we have transparency? Can we Of all the things that the Chancellor could have done disaggregate the numbers so that no sector and no part in the Budget but did not, the failure to act on the rising of the UK is sold short in respect of that additional price of fuel was the most disgraceful. The previous covered lending? Government were awful on fuel. They introduced the There was no specific action to get people to work or fuel duty escalator and opposed the introduction of a keep them in their jobs. Nowhere is that issue more fair fuel regulator at every turn, but this Government, important than with young people. The introduction of notwithstanding the rhetoric before the election, are a national insurance break to help employers take on little better. youngsters who do not meet the criteria for the Work Let us understand what this Government’s fair fuel programme would have been very welcome, but that stabiliser actually does. Fuel continues to rise by inflation was missing. and will, as confirmed today, when the price of oil is Shamefully, there was no action on direct capital high, rise by inflation-plus—an escalator—when the investment, the most important thing that any Government price is low. A real fuel duty stabiliser would see the duty can do. I am surprised that the Treasury Bench did not rate fall when the price rose, precisely because the UK listen when the OBR said in 2010 that the impact Government already receive a VAT windfall at the multiplier for direct investment was 1:1, that for tax cuts pump or a North sea windfall at source in order to pay it was 1:0.3 and that direct capital investment was three for it. Given the scale of the North sea windfall in times more important and three times more beneficial particular, with £70 billion forecast over six years in last at creating GDP growth than tax cuts. The Government year’s Budget, which was £17 billion more than was even kept the squeeze on the very businesses that we identified the previous November, the failure to tackle need to create the growth. There was no change to the properly the rising cost of fuel genuinely is a disgrace. miserly annual investment allowances and that was a This year the forecast revenue for the six years from shame. 2011 onwards is almost £50 billion, but that is based on The Chancellor said that the Budget was fiscally a price for this year and the next two years of $111, $118 and neutral. To pay for his tax cut for the rich, he is $112 a barrel. The spot price today is $124.7, so we can squeezing the cash for services for those who need them safely conclude that, as usual, the UK Government’s most. When one considers that the total cost of the assessment of North sea revenues will be understated. fiscal consolidation by 2015-16 will be £155 billion, that There is more than enough money to tackle the rising year and every year after that, and given a ratio of price of fuel properly, and not as this Government have 4:1 spending cuts over tax increases, we can see where done. the priorities of the Government lie—not with people, It has been described as pernicious already today; it is not with jobs and not with growth. a pernicious measure to be cemented, I think, in future 3.48 pm policy—I am talking about the unfairness of the proposal for regional pay. It will be extraordinary if the same Mr Robert Syms (Poole) (Con): First, I draw Members’ person doing the same job in the same office with the attention to my directorship and shareholding in the same clients is paid differently in different parts of the Register of Members’ Financial Interests. country. I am very pleased indeed that the measure will We have to understand that the coalition Government not apply to Scottish Government civil servants, although inherited an extremely difficult situation, with a massive I suspect that there will be huge resistance to the proposal deficit. The situation cannot be dealt with in one or two from UK civil servants working outwith London. years; we are talking about a process over several years 847 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 848 Situation Situation [Mr Robert Syms] I welcome the Chancellor’s acknowledgement of the fact that we need to do more about airport capacity in to get the public finances into reasonable order. Of the south-east. I recognise that there are problems to do course that would be easier with a benign world economy, with noise at Heathrow, Gatwick and Stansted, but it is but given the eurozone issue and higher fuel prices, not sustainable in the long term to say that we cannot there have been a lot of headwinds over the past 12 or have another runway at any of those airports; we have 18 months. Nevertheless, the British economy has continued to have it somewhere. I do not know whether a new to grow and many jobs are being created, although the magic runway somewhere to the east of London is the outlook is more difficult. answer. If we are to compete in the world economy, we I welcome the fact that today the Chancellor has must have routes to the world so that we can sell our stuck to his plan—long-term fiscal consolidation. Clearly, exports. Some continental airports, including Schiphol there is very limited room for manoeuvre. I despair a in Amsterdam, Frankfurt and De Gaulle, now have little when colleagues are always trying to spend more routes to centres that we cannot accommodate within money because, as we heard from the last Government, our system. We must have regard to the environmental the money has run out. We are really talking about problems but we must also, as a forward-thinking marginal changes to the tax system. Early in his speech, Government, consider how we can get more airport the Chancellor said that the Budget was fairly neutral in capacity. terms of its impact on the British economy, and that is The 45p tax rate has generated a lot of heat, although probably right. Indeed, I am of the school of thought it is not happening yet. At the end of the day, one whereby I sometimes think it would almost be better to should try one’s best to raise money. The existing rate is cancel the Budget and continue with the same policy not raising sufficient sums, and those who pay themselves rather than have to jump up and make lots of greater amounts are in a good position to vary what announcements and pretend that one is being hyperactive. they are paid in ways that give them opportunities to There are things in the Budget that I welcome. I avoid taxes. Today’s approach has been to see capital certainly welcome the rise in personal allowances. It is gains tax and stamp duty on very expensive properties vital that we increase incentives to work. Universal as a more predictable way of raising money than trying credit, when it comes in, will be vital in increasing those to maintain a rate that is not doing the job. incentives, and the benefit cap is also significant. On the other side of the equation, it is important that people on low pay, who pay tax at higher rates than many Dan Byles (North Warwickshire) (Con): Given all the people abroad, should be taken out of the tax system. hoo-hah about the 50p tax rate, does my hon. Friend We have made progress today, and I hope that we will find it interesting that in its 4,753 days in government, make further progress in going beyond the £10,000 limit, Labour had a top rate of 50p for only 37 of them? because we have to get to a position in which people on relatively low wages really feel that there is an incentive Mr Syms: Absolutely. Most of our competitors have to get out there, take a job and make a contribution for lower top rates of tax, and that is significant because their family. it means that this is about how we compete with them. I welcome the Chancellor’s reiteration of his view If we want to get more manufacturing and jobs in that we should pay our way in the world by restoring the Britain, then it is important to remember that some of balance of trade, getting investment in, and trying to the people who are looking to invest in Britain are improve investment in the manufacturing sector, which top-rate taxpayers. It is significant that the stamp duty has shrunk for too long. We need a good financial changes will raise five times as much as would have services sector, but it is vital that we nurse and increase come in from the 50p top rate of tax. investments in manufacturing. Recent announcements on the car industry are very welcome and bode well for I welcome what we are doing to encourage the oil and future export levels. gas industry. It is important that we do more to use One of the legacies of the right hon. Member for those assets. The changes that we made last year were Kirkcaldy and Cowdenbeath (Mr Brown) is that we not very helpful. One of the components of GDP that have one of the longest tax codes in the world. We must has fallen the most over the past 12 months is oil and simplify it because businesses and individuals spend an gas and quarrying. If we want to maintain the advantages awful lot of time trying to deal with its complexities of our oil and gas industry, we need to do far more to instead of running their businesses and selling their extend its life. The tax changes in that area are to be products. I welcome the Chancellor’s proposed tax welcomed. simplifications, which are vital. Overall, the strategy has to be “steady as you go”. Over the past few months there have been negotiations We have to increase the incentives to work. The main about the European Union treaty on more fiscal aim is to leave latitude for the Bank of England. As consolidation and co-ordination of tax policy. That the Chairman of the Treasury Committee said, low gives Britain a great opportunity. If we can get our tax interest rates and, certainly in the short term, quantitative rates below those of our competitors on the continent, easing will have more of a direct impact on the we will get a lot more inward investment. I welcome economy than anything that the Chancellor could what the Chancellor has done on corporation tax, because have done fiscally today. If we have increased the we must reduce the rate. Let us not forget that most incentives for lower-paid people to take work, if we British companies are not owned by multi-millionaires have stuck to the plan, if we have given confidence to but by pension funds. This measure means that we will the markets, if we have made a number of announcements leave more money in businesses and create a better that will help the economy, such as those about broadband environment for investments and pension funds, and and investments, it is a job well done. I welcome the that we will all be richer and more employed. Budget. 849 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 850 Situation Situation 3.55 pm great deal of this country’s caravans. I understand that it could reduce demand by almost 30%, which would be Diana Johnson (Kingston upon Hull North) (Lab): another hammer blow. As usual, the hon. Members who speak later in the debate will have the advantage of having been able to Mr David Hanson (Delyn) (Lab): My hon. Friend study the Budget more as it starts to unravel. I will may not know that only two weeks ago, I opened a new make some initial comments about what is clear so far caravan park in my constituency in north Wales with from the Chancellor’s speech. I think that it is hugely caravans supplied by manufacturers in Hull. The proposed discourteous to the House of Commons that almost VAT on caravans will have a dramatic impact, and as everything that was announced in the Budget has appeared she has just said, it will reduce demand by 30%. Is it in the papers and on other media in the past few days. good practice to reduce demand for the manufacturing Unfortunately, I do not believe that this is a Budget industry in the UK through a tax that will damage our for growth in areas such as Hull, which I represent, nor economy? that it is fair for people in my constituency. On 23 June 2010, after the first coalition Budget, I said in the Diana Johnson: My right hon. Friend makes a very House that good point and indicates, again, that this is not a “wealth creation and enterprise will suffer in Yorkshire.”—[Official Budget for growth—the very opposite, it seems. Report, 23 June 2010; Vol. 512, c. 326.] The latest official statistics show that there are 5,447 It did suffer. On 23 March 2011, after the second jobseeker’s allowance claimants in Hull chasing coalition Budget, I said: 177 vacancies. That is 30.8 people after each job, which is the 10th worst rate in the country. The overall claimant “this is not a fair Budget; neither is it a Budget for growth.”—[Official Report, 23 March 2011; Vol. 525, c. 1024.] count across Hull was up by 12.4% in the latest period. Kingston upon Hull North’s long-term youth It was not a Budget for growth. The growth that was unemployment among 18 to 24-year-olds has gone up starting to return under Labour in 2010 was snuffed out by 155% in the year to February, which is shocking. by 2011. We have now had a year of flatlining. In Hull needs a determined focus on specialist vocational Yorkshire and the Humber, 40,000 private jobs have education and training, to equip our youngsters to get gone in a year. We are supposed to be gaining private the jobs in green industry that could be important to the sector jobs, not losing them. Private sector jobs were economy of Hull and the region. supposed to replace the public service jobs that are being slashed, to create the growth that is needed to cut Engineering qualifications are very important, and I the deficit. We all, of course, want to see that. was disappointed that the Secretary of State scrapped the diplomas scheme, particularly for engineering diplomas. Just outside Hull, there are 845 long-standing, skilled As I asked the hon. Member for City of Chester (Stephen employees at BAE Systems, working in the strategically Mosley), why is information and communications vital defence manufacturing industry, who will probably technology not part of the English baccalaureate to lose their jobs this year because of BAE’s decision. show how important ICT skills are for our future? Taxpayers will have to meet costs of up to £100 million because of those redundancies. Those skilled jobs will The Government have talked a lot about rebalancing be exported to countries that have Governments who the economy, but people in the north who are seeking are willing to nurture their industries for the long term. work—the north’s jobless—are being told to move to It is worrying that the defence White Paper, which was the south for work, and those in the south who are produced just a few weeks ago, indicated that the British looking for affordable homes are being told to move to Government would not necessarily buy defence equipment the north. Is that rebalancing the economy? The from British companies, but they certainly want other Government have to think again. They should ensure Governments to buy from British companies. What that there are enough jobs and homes in each region to kind of message does that send out to support exports? make the whole country work together effectively. Hull’s future is as a national hub for green technology. I wish to focus on some of the key announcements in Thanks to the local efforts of businesses, councils and today’s Budget, starting with the raising of the personal others, Siemens will we hope be bringing offshore wind allowance to £9,000 next April. Citizens Advice has turbine manufacturing to Hull shortly. That would open already put out a quote on the matter, stating: up a wealth of opportunities for the city and the sub-region. “Raising the personal tax allowance is an empty gesture to Hull would have been an ideal location for the green struggling families on low wages.” investment bank, but unfortunately that has gone to That blows a hole in the argument that the Liberal Scotland. In one sense, squandering the chances to Democrats try to put forward about the Budget promoting attract new jobs in sunrise industries to Hull is more fairness. damaging than losing existing local jobs. Recently, 100 jobs Like cuts to income tax rates, raising the personal were under threat at Warmsure in Hull because of the allowance could be part of a plan to boost demand and Government’s decision in the solar feed-in tariff debacle. growth, provided that it was part of a group of measures We know that there is strong overseas competition in such as those outlined in Labour’s five-point plan. In a renewables. We cannot afford to export jobs in these time of scarcity, the Government’s plan, costing about growth industries. We need to export our products, not £3.3 billion, is an inefficient way of helping the poorest our jobs. I was concerned that the Chancellor did not in our society. It is clear that middle and upper earners give a clear message today about the Government’s will benefit most from the change. I understand that commitment to renewables. they will get about an additional £175 each year. Hidden in the Budget is the announcement that VAT We must consider that against the losses that individuals will be charged on caravans. That will have a real impact and families will experience. For instance, the average on the economy in Hull, because we manufacture a family is due to lose £530 from 1 April because of the 851 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 852 Situation Situation [Diana Johnson] and education maintenance allowance was axed. The Liberal Democrats promised 3,000 more police but we changes to VAT and benefits, including child benefit are getting 16,000 fewer. They promised opposition to freezes. This April’s changes to the working tax credit VAT, but we how have higher VAT. They seem to have requiring couples working part time to do a 24-hour dropped the armed forces pay increase and many more week rather than a 16-hour week, at a time when a lot of of the opportunist promises they made before 2010, people’s hours are being cut and jobs are disappearing, when they had full knowledge of the deficit that would will affect 212,000 families across the country, including face them. The tycoon tax is just the latest Lib Dem nearly 450 in my constituency. They will lose nearly slogan. Increased stamp duty is all very well, but it hits £4,000 a year, and they are families that are struggling only the minority who sell the property in any year. It just to get by. What help was announced for those needs to be matched by a clampdown on general stamp families? There was nothing. If the Government were duty avoidance. serious about fairness, they could have done something The other major announcement is to cut the top rate about that. of tax. [Interruption.] The Liberal Democrats have no Research by the Child Poverty Action Group shows defence on that. that two thirds of the families who are about to lose tax credits are already in poverty, so I dread to think what Tom Brake (Carshalton and Wallington) (LD): What will happen to them now. They are punished for doing did you do in 13 years? the right thing and for trying to hold down a job at a time when it is so difficult to get a job or to get further Madam Deputy Speaker (Dawn Primarolo): Order. hours of work. The right hon. Gentleman will not shout across the To make matters worse, the coalition is now moving Chamber at somebody who is speaking. If he wishes to ahead with regional pay in the public sector, with the intervene, he should do it in the normal way. That Liberal Democrats’ support. That is not surprising, applies to all hon. Members. because the Liberal Democrats have often advocated a regional minimum wage. Regional pay is more evidence-free Diana Johnson: The other major announcement is policy making by this Government, based on free market the top rate of income tax reducing from 50p to 45p for dogma. There is no real evidence that national public those earning more than £150,000. To do that, given the sector pay crowds out the local private sector. Indeed, current state of public finances and the economic situation, public sector workers, living and spending locally, are a is simply wrong and unfair. I do not understand why the vital part of supporting the private sector in Hull’s local Liberal Democrats have agreed to that when it will economy. We already have London weighting to help deliver a £40,000 windfall to 14 million people. That workers with the extra costs of living in the south, so helps the wealthiest, which always seems affordable to there is no reason for different pay rates between the the Government. Boardroom pay rose by 49% last year; regions. the bonus season is running riot—we are not all in this Local or regional public sector pay could drive down together. It is austerity for the many and wealth for the wages in some of the poorest areas, taking billions more few. out of local economies and accelerating the growing north-south divide. So much for rebalancing the economy. 4.8 pm Andrew Gwynne (Denton and Reddish) (Lab): My Jesse Norman (Hereford and South Herefordshire) hon. Friend is making a pertinent point, but in some (Con): Several speeches have reminded me of Herbert parts of the public sector will not the opposite be the Asquith speaking on the Licensing Bill in 1907, when he case, so that, for example, hospitals, desperate to recruit gave an eloquent speech for about an hour and a the best clinicians, will end up paying more to compete quarter and was then asked for a summary of his notes, with hospitals in London and the south? which consisted of one page with the words, “Not so many pubs.” In other words, we have had an enormous Diana Johnson: Absolutely. My hon. Friend makes amount of words but not much content; a lot of an important point. We know that the NHS is in for a “sound and fury, torrid time in the months and years ahead, and he has Signifying nothing.” identified another problem that it has to tackle. I welcome the Budget on three grounds. First, I The combination of regional pay and the unfairness welcome it for my county of Herefordshire. Many of its in the Budget contradicts the coalition’s rhetoric about provisions are extremely good. We have 100% council making work pay and rebalancing the economy, sucking tax relief for servicemen and women, which will make a even more money out of areas such as Hull and the great difference to many of my constituents. We have a north in favour of the wealthier areas, mostly in London commitment to infrastructure, which we need in our and the south-east. rural areas. We have support for smaller cities and I am also worried that regional pay could mean that broadband, of which we hope to take advantage, and some of the brightest and best, for example, teachers—we we have tax simplification for small businesses. All that need the brightest and best teachers in areas such as is extremely welcome. Hull—will not come to Hull if the pay is not the same I also welcome the Budget from the standpoint of the as in some other parts of the country. nation as a whole. It has so many things to recommend Let me comment on the Liberal Democrats’ spin to it. I think of the expansion of support for exports; the the effect that this is a Robin Hood Budget. It joins the northern hub, which will start to fill the gap created by long list of broken Liberal Democrat promises. We had the amazing lack of infrastructure linking northern the abolition of tuition fees, which were then tripled, cities; the integration of the tax and national insurance 853 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 854 Situation Situation systems; and the new tax statement, for which my hon. There has been a lot of concentration in the House Friend the Member for Ipswich (Ben Gummer) is greatly over the past few months on the undeserving poor. to be thanked. I also think of the Treasury’s work on its There has been heated debate, and I have certainly new review of employee ownership. That would be an made my views clear on issues such as housing benefit. I important repopulation of our system and a move away therefore welcome the fact that the Chancellor has from the crony capitalism of the past decade. concentrated his attention on those who play the system in another way, and that he has looked at unearned Debbie Abrahams: Does the hon. Gentleman agree income and property taxation. The changes to stamp with the Chancellor that “aggressive tax avoidance” is duty and capital allowances are to be welcomed. “morally repugnant”? If he does, why does he believe I represent the constituency with the highest the Chancellor failed to mention how he will address unemployment rate in London, and it is right that I ask, the tax avoidance of private health care companies—the on behalf of my constituents, whether the Budget does same companies that have been lobbying in favour of enough to alleviate that tremendous problem. This is the Health and Social Care Bill? only a week after we discovered that 56% of young black men in Britain are unemployed. That is a huge Jesse Norman: The answer is that a general anti-avoidance concern which should be shared across the House. All rule is what it is. If there is avoidance by health care unemployment, among all members of our population, companies, I hope they will be captured by the rule, in is a disaster, and long-term unemployment leaves serious just the same way that I hope the rule extends to include scars, but we should be particularly concerned about the tax affairs of Ken Livingstone as he runs for the that statistic. London mayoralty. Much has been said about a feral underclass. I do not Finally, I welcome the lower corporate tax rise, and like the term. The word “underclass” summons up most of all the rise in the income tax threshold. This is visions of the caste system in India and we ought to an extraordinarily important moment in British history, reserve the word “feral”for discussion of rodents. However, in which we begin to roll back the ever-pervasive state those in the House who either grew up on working-class created under the previous Government, and in which housing estates or have significant housing estates in people are given freedom and control over their economic their constituencies will recognise a workless class—those affairs. I greatly welcome that. on housing estates turning from being working class to The Budget continues a path of renewal that was members of a workless class. begun two years ago. We must never forget that this I do not want to be completely partisan about that country lost ground during the so-called boom years of because there was structural unemployment in our system the late 1990s and 2000s. When we adjust the gross under Labour. We largely talked about that in the domestic product per capita numbers, we see that, in context of those not in education, employment or training. fact, they overstate the country’s success, which relied NEETs have remained a long-running sore in this country. on immigration, a boom in house prices and a boom in However, it should be of huge concern to the House personal indebtedness. When those booms collapsed, so that in a constituency such as Tottenham, 6,000 people too did our economy. are unemployed and 21 are chasing every vacancy. We lived under the illusion of growth. We thought we were doing better than other European countries, but in Meg Hillier (Hackney South and Shoreditch) (Lab/ fact we were not. We were having our breakfast, lunch Co-op): Does my right hon. Friend share my concern and dinner eaten in front of us by Brazil, Russia, India about the particularly high unemployment rate among and China and other emerging countries. That was also young black men? It is a scourge that has existed in our a time in which a culture of crony capitalism took over society for far too long. The recent figures fill me with this nation. The effect of uniquely targeting inflation dread not hope, but the Government’s policies do nothing gave support to those asset bubbles, which in turn to help them. created an economy that was reliant on revenues from the financial sector and fed into the lack of balance, Mr Lammy: My hon. Friend, like me, recognises which the Government and this Budget are doing much that problem and will know, from the history of to address. Hackney, that this is of such concern because in On local grounds, speaking for Herefordshire, on constituencies across the country, in areas as different national grounds, speaking for the country as a whole, as Middlesbrough, Hull, Tottenham and Hackney, we and on historical grounds, as this country continues a are seeing intergenerational worklessness. I hoped that transition from cleaning up the mess to rebuilding and the Budget would make some attempt to deal with that renewal, I welcome this Budget. problem. In my lifetime, there have been serious levels of 4.13 pm unemployment twice before. There was huge unemployment Mr David Lammy (Tottenham) (Lab): This is my first in the 1980s, when it was higher than today, and it was opportunity to speak about a Budget following the even higher as recently as 1996, when more than 10,000 spotlight that fell on my constituency in the summer, so people in the constituency of Tottenham were unemployed. I want to begin by supporting some measures in it. We are talking about a group of young unemployed Business and shopkeepers on Tottenham high road people, aged 18 or 19, whose parents were unemployed and recovering from the mayhem and violence, burnt shops, sometimes whose parents’ parents were unemployed. broken windows and the loss of business will welcome That is a disaster for our economy. When I looked at the the simplification of taxes. Many of those small businesses scenes in August with tremendous and deep concern for still grumble and talk about the complexity of such what was happening on the streets of London, I realised regulation. that often some of the children of those who rioted last 855 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 856 Situation Situation [Mr Lammy] our country. What is the growth story? My constituents are still waiting to see what it is. There time were causing the same the problems this time. That are huge concerns about equity and fairness in this is how scarring unemployment is and why we needed a Budget. I predict there will be further disturbances and Budget that got to the heart of growth. concerns until we get a grip and deal with this emerging It would be wrong, of course, if I did not welcome problem. what has been said about the film and games industries, but it is right that in London I reflect on 4.24 pm whether that will come to the constituencies that need it and matter. Although I of course welcome the decisions Richard Drax (South Dorset) (Con): Perhaps it is on capital allowances in the royal docks area of the east appropriate that I should follow the right hon. end of London, I want to make what may feel like a Member for Tottenham (Mr Lammy). He certainly parochial point, but which is in fact a serious point. Are made a thought-provoking speech. I would just make we committed to one London—where there are not the point that what we need to do, surely, is to create the inner cities, but just one city—or will we continue to environment for jobs, so that that large percentage of show a preference for certain parts of London? Despite his constituents, the black population, can get a job. the huge problems that exist in the east end, it has Until we create the right environment for jobs to be Canary Wharf and the Olympics, and it now has a created, there will not be jobs for anyone in this country, Mayor committed to a new airport in the Thames whatever colour they are. estuary. In north London, in a concentrated area of I congratulate the Chancellor on his Budget, which poverty in Tottenham and Edmonton, we have seen was delivered in quite trying circumstances. It has been nothing like it. pointed out that a lot of it was leaked before his With regeneration coming around the Spurs statement in the Chamber. It has been delivered in development, I would hope that we, too, might get circumstances in which, due to Labour’s undoubted those allowances. To deal with the jobs problem—I am profligacy and the world banking collapse—which I talking not about highly skilled jobs, but about semi-skilled accept played a part—there is little room for manoeuvre. jobs and some jobs that do not require skills—we will There is less still room for manoeuvre because we are need to attract private investment to give us those jobs. constrained to a certain degree, whether we like it or The danger now is that there is an incentive to go to not, by our coalition partners. another part of London, concentrating poverty even I therefore warmly welcome the good news. I welcome more deeply in north-east London in particular. the reduction in corporation tax and the higher personal There is another issue in the Budget: not those without tax allowance. I welcome the reduction in the top rate of employment, but the working poor. We should remind income tax from 50p to 45p. I particularly welcome the the House that someone working in a constituency such extra investment in our armed forces, and especially in as mine, here in London, might be a dinner lady at their accommodation. Having served myself, I well recall lunchtime and likely a cleaner in the evening, or a the abysmal standard of much of the accommodation minicab driver during the day and a security guard at in the 1980s. I am also mightily relieved that we have left night. Such is the situation for those who are unable to our beleaguered pension system alone. It would have make a living wage in our capital city. Of course, the been madness to tread on that particular nest at the changes to the personal allowance are desirable for moment. The right hon. Member for Kirkcaldy and those who are working. However, I might add that these Cowdenbeath (Mr Brown) did so, and we all remember are the very same families who saw their tax credits the consequences. taken away in the last Budget, so this really is robbing The 50p rate has engendered a lot of heat, and I can Peter to pay Paul. As we know, those who will benefit understand where that heat is coming from. I remind from the changes will largely be middle-class families the House, however, that it was introduced in the dying and those who are really well-off. throes of the Labour Government as a political move. It The decision to give a further tax break to those was, in effect, an elephant trap; it was well laid, politically, earning more than £150,000 a year will seem bizarre to and it is a nightmare to climb out of. We had hoped to my constituents, who have seen their incomes fall. Anyone come into power as a Conservative Government, but travelling into central London on the tube from Seven that did not happen. We need to be bold, and I wish that Sisters station, either to look for a job or go to a job, is we had gone further and reduced the top rate in the looking at spending £6.20 a day, whereas someone who emergency Budget, but we did not. Yes, everyone should decides to come down into central London on the pay their fair share of tax, but the top 1% in this 341 bus will have to pay £4.20 a day. Fares are up by country already pay 28% of all income tax, and the top 12% on the bus and 16% on the tube, under the reign of half pay 90%. Milking them of their rewards for all Boris Johnson. Those costs are huge for families with their hard work and aspiration will hardly encourage babies, who have already seen their monthly costs go up endeavour, and spending the money that we take from by £8.20 in just the last 18 months. them on a bloated, runaway welfare state is sheer madness. The cost of living is going up for the working This is the politics of envy. The Institute for Fiscal poor, and there are huge concerns about worklessness, Studies estimates that, by the next election, one in four yet we heard nothing about how we are going to of us will be paying tax at 40%. Not so long ago, that deal with that. We still have to wait for the figure was one in 20. introduction of the youth contract. We have also seen As Tories, we must remember what we stand for: less two thirds of apprenticeships in London go to those state, less red tape, less taxation, less government, less who are over 25, and it is not at all clear that we have public spending, more enterprise, more wealth creation got apprenticeships in the right areas of the economy in and more support for business. We remain deeply in the 857 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 858 Situation Situation red, thanks in large part to Labour. Public sector debt is 4.31 pm still at £1 trillion, and borrowing will be £120 billion this year. We need that Meg Hillier (Hackney South and Shoreditch) (Lab/ Co-op): I congratulate my right hon. Friend the Member “forensic, relentless focus on growth” for Tottenham (Mr Lammy) on the comments he made. promised by our Prime Minister. We must encourage For all the Budget figures that we talk about, real that. We should not only cut taxes but slash them. We people are at the heart. I echo his comments, but I want must release business from all its constraints. We often to talk about the small businesses in my constituency, proclaim that we are open for business but, as Willie which I hope, and we all hope, will help to create some Walsh writes in The Daily Telegraph today, the Chinese of the jobs that my constituents, like my right hon. laugh when they hear that. Friend’s, so desperately need and want. The Federation of Small Businesses in the south-west Hackney is very much a picture of small businesses, came to see me recently, and begged for more help from with more than 90% of them across the borough as a the Government. Small businesses are struggling with whole employing fewer than six people—and many of high fuel costs, as other hon. Members have mentioned, them even fewer than that. The vast bulk of small and I regret that we cannot go much, much further in businesses are located in Shoreditch, in the southern cutting fuel taxes. Small businesses are also struggling part of my constituency. It is very much the heart of the with high business rates, with a lack of infrastructure creative industries and the tech city hub, with nearly and with banks that are refusing to lend. We have heard 39,000 people employed there. In the Shoreditch town those stories repeatedly in the House. The national loan centre area as a whole, there are more than 4,000 in the guarantee scheme for small businesses that was announced tech area and more than 5,000 in the creative industries, yesterday will provide credit at a lower rate of interest, with about 15,000 people overall. Shoreditch has 77% of but access to that credit is as difficult as it has always the total town centre employment and 93% of all the been. Indeed, the FSB said yesterday that the scheme is technical employment. not a “game changer”, yet that is exactly what we need The growth and dynamism of that area have been now. We need really radical policies. We must be brave; going on for some time—before, I have to say, the Prime we simply cannot go on tinkering at the edges. Minister got interested in it. Of course I welcome any Most of all, we need to cut state spending; many interest shown by the Government in my constituency, inroads into it have been made, but in my view we have but I have to say that some local businesses worry that not gone far enough. We need to take the state out of the increase in rents is partly a result of the talking up in people’s lives. This is a Conservative philosophy, and, I government of the area. Many of the businesses have believe, a right one. The public sector as it currently been there for a long time, as I shall touch on shortly. stands is unaffordable. I regret that we have made changes to child benefit. Ms Margaret Ritchie (South Down) (SDLP): Does At whatever level the “cliff edge”, as it has been called, my hon. Friend agree that today’s Budget simply imperils is set, many hard-pressed, hard-working families will be working families and particularly small businesses because worse off. I heard my right hon. Friend the Member for it has no measures to mitigate the effects of fuel prices, Hitchin and Harpenden (Mr Lilley) saying—on which are already high in urban and rural areas? “Newsnight”, if I recall correctly—that he looked at that from every angle some years ago, but could not see Meg Hillier: My hon. Friend makes an important how to alter it. What I say, however, is that it is disingenuous point. The fuel issue is not such a big one in my to suggest that poorer families were or are subsidised by constituency because of our public transport links, but the better-off, because the better-off pay a higher rate of it is different in areas such as Northern Ireland. I recall tax. There must be other ways to give families with having a conversation with a man in Carlisle. He said, children some help—without the unintended consequences. “Tell them back in London”—I thought that was illustrative Perhaps a system of tax allowances rather than benefits in itself—“that I spend more on fuel in a month than I could be examined. do on food.” He was just an ordinary working man. It is We must also admit that much of the pressure on important for the Government to understand the pressures public expenditure is ultimately due to immigration. on household incomes; there are important issues there. Immigration in this country is at an unacceptably high The economy in Hackney South and Shoreditch is level, putting huge pressures on this country and her dominated by small businesses. It is very creative; we services, and we are struggling to keep our roads and have a big fashion industry, and a digital industry at rails going and to provide enough housing. In the silicon roundabout. We are seeking to improve and longer term, it is unsustainable. A sudden increase in increase that economy all the time. A lot of the small birth rates means, I am told, that we will need 540,000 and micro-businesses are struggling. They are not getting new primary places by 2018. the lending that they need from banks, because banks Finally, I cannot leave the European Union out of refuse to understand their business models, which are my speech, because it is inflicting a high price on often innovative. They are not even able to get the business in this country. We can say a lot here and we working capital through overdrafts. That is a real issue. can have aspirations here to release our business and let Overdrafts are treated in the same way as loans on the it fly, but we will never get what we want or the jobs and balance sheet. Many of the businesses that I deal with, wealth we need to generate until we are free of the red especially those that are growing and have got to a tape from Brussels. Only then can we break free from certain stable point, simply need that facility; they are the shackle of deficit that hangs around our neck. not seeking a loan. The interest rate cut makes no When we have, the important thing to do is to spend difference to them. They are seeking an overdraft facility, only what we earn. not a loan. 859 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 860 Situation Situation [Meg Hillier] Another business, Image Line, is owned by Sue Terpilowski, who is involved with the Federation of The interest rate cut announced yesterday makes no Small Businesses, so she knows a lot about what other difference to those seeking a loan, either, if they have a businesses are putting up with. She told me that her business model that makes banks nervous about lending business rates, for 2,200 square feet, went up by £8,000 this to them. One person said to me, “We lend only to vanilla year. Rate increases have a big impact on businesses, companies”—that is, safe bets with well worn business and on the face of it, we can see nothing in the Budget models. We are talking about an area of bursting creativity, on that issue. an area that is growing enormously and will and does There are other pressures on London businesses across create jobs, so we need a solution. Merlin was a damp the board—I am not talking just about Shoreditch now. squib; the magic wand did not work. I am not hopeful London members of the Federation of Small Businesses that the Chancellor’s announcement will make any are taking out loans or overdrafts at interest rates that difference to the small local businesses to which I speak. are very high compared to those available nationally. There is another key issue for small start-ups. We Some 21% of London members of the FSB have loans need 600 desk spaces. For those who do not know the or overdrafts at interest rates above 15%, compared area, if they wander around it, they will see, in cafés, with 9% of its members nationally. The 1% in question hotels and specially designed work hubs, people sitting is merely a drop in the ocean in the context of interest with their laptop or iPad; they will be doing business in rates that are that high. That issue must be tackled. that fashion. Across the area, a few thousand desk spaces are rented out for about £350 a month. That is Has the Chancellor had any conversations with businesses how a lot of people do business; they grow that way. In about more innovative ways of providing working capital, the Trampery, a shared desk space area in my constituency, such as the next generation funding models, including one business has grown to the point of renting 13 desk funding circles and crowd-funding? Such models might spaces. It has decided to stay there because of the work for the new tech businesses in my constituency, creative input, but also because it is a big risk to move but they need to be regulated. There is a lot of talk of from that fluid way of working to permanent premises. one in and one out, but if we are to have innovative That is a type of business that Government and this funding models, we need Government support to ensure Budget do not really understand. that they are legitimate forms of funding and that As I say, rents have gone up enormously, which is a scams do not happen. real challenge. As businesses improve and seek to stay in The Chancellor has announced his seven short-listed the area—crucially, they may employ local people if funds. I have my doubts as to whether they will lend to they are in the area for a long time—that causes problems. the businesses I am talking about, especially when we I do not want my constituency to be the nursery of consider the much vaunted Green investment bank. We businesses that move elsewhere simply because they hoped it would support new businesses, but we feel sure cannot afford to stay. If they move elsewhere for good that it will be controlled by the Treasury and the available reasons, that is a different matter, but some of them are capital will go into some of the bigger known providers. being forced out. I want to give examples of what the Budget really My constituents want to find work in the job-creating means on the ground. Somethin’ Else is a media production new tech businesses in Hackney, so skills is a key area. company employing about 70 members of staff in We have good support from Hackney community college, Shoreditch. It has an annual turnover of approximately which has set up an apprenticeship scheme, working £8 million. Under Project Merlin, it was not able to get with the tech city hub. Thanks to Government funding, the borrowing facility that it wanted. It simply wanted we in Hackney will have a university technical college, an overdraft, but that was withdrawn from it overnight under principal Annie Blackmore, opening in September during the economic crisis. The company is quite interesting, at the HCC. She and Ian Ashman, principal of the because it produced a film called “somewhere to”, an HCC, have been working closely to try to ensure that we Olympic-funded project run by Livity. It featured young develop the necessary skills through our schools and people performing in No. 10 Downing street. The Prime colleges so that young people in Hackney can secure Minister was so impressed by the work of the company these jobs. We must make a link with the people who that, as some Government Members will know, the film live just north of Hoxton square and in the rest of my was played at the Conservative party conference before constituency, many of whom do not have access to his speech in October last year. The very company that these jobs because they do not have the necessary skills. was paraded by the Conservative party as a success is I cautiously support the Sunday trading proposals struggling precisely because of Government policies. for the Olympic period, as I recognise that that is a Not Just a Label is an international business, an welcome global event coming to my constituency.However, online fashion promotion platform. It is the only online I am also concerned that the move could be a trial run fashion design platform in the world. It is present in for a permanent change in the law. The leaks about 93 countries and represents 8,000 fashion businesses, today’s Budget announcements were broadly accurate, including 1,000 in east London alone. It currently employs and I worry that the leaks about the Sunday trading 15 people in very small offices tucked away in the back proposals, suggesting that the Chancellor has a secret streets of Shoreditch. It is looking to expand and develop: mission to take on the low paid and families and to it wants a design showroom to complement its virtual ensure that people will have to work long hours, might presence. That would involve the company doubling in also be accurate. My local smaller businesses are also size within six to 12 months, but traditional banks are nervous about the proposal. The benefit of longer trading not willing to fund that expansion, because they simply hours is very small for them, but it gives more succour do not understand that business model. The “vanilla to the big retailers, who are already putting a lot of financing” line was used to that group. pressure on such small businesses. 861 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 862 Situation Situation High broadband speeds are much needed, and Hackney taxman, because they will understand the form that council is already seeking to increase speeds, first in they are filling in and will not be fearful of getting it Shoreditch and then in Dalston. I do not know the terribly wrong. timetable for that scheme. However, although the Chancellor The Budget contains lots of other good things. I am says he is funding it, I want to know whether it is new sure that the whole House welcomes the £36 billion that funding and how quickly it can be drawn down. We is being saved as a result of interest that we are not certainly need these developments in Hackney. paying because of the low interest rates engendered by The Chancellor has, through sleight of hand, suggested this Government’s economic policy. Some Opposition that the Government greatly support business. The small Front Benchers have been suggesting ways of dismantling and medium-sized businesses in my constituency have this fantastic set-up that enables us to borrow at low yet to benefit, however, so there is a great deal of interest rates, but, realistically, everyone has to welcome scepticism about the Budget. I want the businesses in the fact that we are paying less for our debt at the my constituency to grow and the jobs to be created, but moment. I am very worried that this Budget will not deliver. Neil Carmichael (Stroud) (Con): I am thoroughly 4.43 pm enjoying my hon. Friend’s speech and he is hitting on the important issue of interest rates. Does he agree that Chris Heaton-Harris (Daventry) (Con): It is a pleasure smaller businesses, too, are going to benefit enormously to speak about the Budget on Budget day itself, and, from low interest rates, both now and in the future, indeed, to have quite some time in which to speak. The because they mean long-term investment for those last time I tried to speak in a Budget debate, I was businesses? curtailed at three minutes and 52 seconds, just as I was building up a full head of steam. I hope to enjoy the Chris Heaton-Harris: I thank my hon. Friend for his nine minutes and 42 seconds remaining to me today. intervention, and of course I agree with what he says. I welcome the Budget for many reasons, but, in The more we can spread lower interest rates, the better common with any Back Bencher trying to represent it is. As hon. Members from across the House will their constituency, I also have some questions and there know, it has been difficult getting the banks to lend to are some areas on which I want to probe and seek all sorts of small businesses in the past two years. Any commitments from the Government for future Budgets. measure we take that strengthens lending to small businesses I listened carefully to the contributions on their is a thoroughly good thing, because these businesses are constituencies of the right hon. Member for Tottenham the acorns from which big businesses grow. The Labour (Mr Lammy) and the hon. Member for Hackney South Government had this fantastic policy of how to and Shoreditch (Meg Hillier), who serves with me on manufacture small businesses: they took a big business, the Public Accounts Committee. For the first eight taxed it and added loads of regulation, and a few minutes of the right hon. Gentleman’s speech, I did not months or years later they had a small business. We are disagree with a single word he said. It was a fantastic doing exactly the opposite. speech. I know his constituency very well. A friend of mine has set up a boxing club on White Hart lane, and Mr Adrian Bailey (West Bromwich West) (Lab/Co-op): he takes in young people from the Broadwater Farm The hon. Gentleman has been extolling the virtues of estate. The right hon. Gentleman has led his community low interest rates. I would certainly agree with the thrust in a highly commendable way since last year’s riots. of his argument, but what has he got to say about, and Let me set out what I think we all want, and what I would he condemn, those financial institutions that certainly want as a former small business man. Before have started to raise interest rates for mortgage holders? going into the European Parliament, I ran my own business wholesaling fruit and veg in New Covent Garden Chris Heaton-Harris: I would not necessarily condemn market, working nights for 11 years. My second language them, but I would very much like them to answer the at the time was Cockney, and the sort of people I used case on why they are doing that. I understand their to work with were keen on trying not to pay any tax. business case, and people find it interesting when they These were cash businesses and people tried to keep it start to talk to them. I like to think that the measures we that way. They wanted to generate wealth and then to have taken in the Budget, whereby we are trying to choose how they spent it. There is a delicate balance to allow the flow of low interest rate money through our be struck in government between encouraging as many business sector in bigger and better ways—I think, for people as possible to create wealth and ensuring the bit example, of the seven partners that the Chancellor is that is taken in tax is spent well, so that people feel they now looking at to do that in the future—are a valid way are getting value for their money. I would like to think of proceeding. that everyone in this House welcomed elements of this I also welcome the broadband investment. My Budget, and certainly those dealing with small businesses. constituency is in the heart of England and could not I know that the threshold is set at only £77,000 of be more different from that of the hon. Member for cash passing through someone’s small business, but Hackney South and Shoreditch (Meg Hillier). My some of the paperwork associated with their return to constituency is largely rural with lots of dynamic businesses, Her Majesty’s Revenue and Customs goes overboard—it including lots of small businesses, based in it. However, is way too much. These people are normally one-man we have awful broadband connection. When hon. Members bands, although perhaps they have a partner, so reducing talk about trying to get regular download speeds of and simplifying their paperwork is fantastic for them. 2 megabits, I look at them in awe, because my area is at We are giving people who want to set up a chance to the end of a copper exchange and we barely get speeds know that they are not going to be hammered by the of 1 megabit. Where I live, I still watch my e-mails 863 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 864 Situation Situation [Chris Heaton-Harris] Personally, I do not mind consumption taxes. I know that Labour Members take issue with that, so let me download, and plenty of hon. Members from across the give an example. I would love to see the end of vehicle country find themselves in exactly the same position. If excise duty. Fuel prices are too high, as we all know we want proper inclusion across the whole country, we because we all regularly fill up our fuel tanks. Getting have to have fast broadband. I would settle for fast rid of vehicle excise duty would add, I believe, roughly broadband, although superfast broadband would be a 1.5p to the cost of a litre of unleaded petrol and diesel. delight, and I very much welcome the measures we are But we would not have to pay vehicle excise duty and we taking on that. would pay as we drove, so if we drove a gas-guzzler we I welcome—not because I am a Tory, but because I would pay a lot more. The old lady who drives hardly at was in business—the fact that corporation tax is being all would pay a lot less. There would be a huge simplification lowered. We want to encourage businesses to invest. of the tax system. That might not work, but I would like One way of doing that is by lowering corporation tax us to think outside the box and consider areas where we and I welcome the trajectory in which we are travelling. could simplify taxes. I welcomed the waving of Order Papers when it was Andrew Bridgen (North West Leicestershire) (Con): announced that this Government are lifting 2 million Is my hon. Friend aware of the millions of vehicles that people out of paying tax, but— are not paying vehicle excise duty? Putting the tax on fuel would catch them all and bring them within the Meg Hillier: Before the hon. Gentleman moves from scope of taxation. the issue of small businesses, may I ask whether he has spoken to business people in his area about the possibility Chris Heaton-Harris: I am aware of that; it is one of of a cross-Government body looking at small business the reasons I moot the idea at this point. administration to make sure that different Government policies do not have perverse outcomes, which Governments I would like to finish by talking about personal of all parties ought to consider? taxation and the general excitement across the House about the reduction in the top rate of tax from 50p to 45p, based on the Laffer curve. I have been reading the Chris Heaton-Harris: As the hon. Lady knows document that the Treasury has produced and note that from the Public Accounts Committee, where we have the comparison has been made on the changes to the often talked about such matters, it would be lovely if additional rate of income tax and the money that we Government Departments had a holistic approach to might have expected to get in, or not to get in, as a result any area of policy. If we could start with small of increasing taxes. I humbly suggest that that completely business, that would be fantastic, but I do not think we underestimates the value of reducing taxes, because are quite there yet. That is something we would all reducing taxes means that there is more of an incentive support across the political spectrum and without political to pay and not to try to divert or put off paying them point-scoring. for a certain amount of time. I would love to see more I was speaking about the waving of Order Papers and work done in the Treasury on what those figures would the 2 million people being lifted out of paying tax end up like, because we want to encourage the creators altogether—a thoroughly good thing, which I would of wealth, and one way of doing so is by saying to them, like to think is welcomed in all parts of the House. It “You can keep more of the income you generate.” We benefits everyone who is working—people who are trying want people to take a chance and a risk and to set up hard for themselves, have got on the job ladder and are their own businesses, and this is one way of encouraging moving forward. I benefit. From what I see on Twitter them to do so. and other media sources, if people are earning around £60,000, have children and drive a car, they are not in a great place after the Budget. That includes most Members 4.55 pm here. We have managed to produce a Budget that penalises John Healey (Wentworth and Dearne) (Lab): It is a MPs, which I am sure our constituents will be relatively pleasure to follow the hon. Member for Daventry (Chris happy with. Most people want to see the lowest paid in Heaton-Harris), and I think that the whole House is society not paying tax, and long may that continue. glad that he had more than three minutes and 52 seconds I have one or two concerns and plenty of suggestions. in which to speak today, because that allowed us to hear The Treasury Minister will know of my long-running for the first time about his days as a fruit and veg man in love affair with onshore wind turbines and what they do Covent Garden and the speed of his e-mail downloads to my constituency. Although there was not much about in Daventry. I have to say that we did not hear much renewables or the subsidy levels, I welcome the words that was new from the Chancellor, who spent an hour spoken by the Chancellor in his speech. An investment telling us what we have been reading in the newspapers in gas and in nuclear is proposed. If we chose that for the past week. It makes me think how times have method to hit our 2020 carbon target, we would save changed since Hugh Dalton was required to resign in more than £35 billion, compared with the route that we 1947 over the leak of a single duty rate change. Nevertheless, are currently choosing to go down, which involves other in my experience announcements that look clever on types of renewables that cost an awful lot more. The Budget day often look less certain and more complex in subsidy that is given to landowners and energy companies the days that follow, and what often follows is that the makes energy cost more, increasing fuel poverty at the economics behind the politics becomes much clearer. It other end of the cycle. I suggest wholeheartedly that we seems valuable to recall the warning that Winston Churchill look carefully at the policy choices we are making when gave: we talk about energy, green taxes and fuel poverty in the “We shall not be judged by the criticisms of our opponents, but future. by the consequences of our actions.” 865 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 866 Situation Situation Barry Gardiner: Does my right hon. Friend agree that area, more than 12 people are now competing for every one of the things that might look a little shakier later is single job that becomes vacant, and the number of the granny tax and the fact that 4.1 million people will young people without a job for more than six months be worse off in real terms, with an average loss of has more than doubled in the past 12 months alone. £83, and as a result of which 230,000 people will be At a time when courts, hospitals, councils, civil service, brought into income tax? police and fire service are all cutting public service jobs, any difference that there may be in south Yorkshire John Healey: My hon. Friend is right. This might well between public sector and private sector pay rates is become a Budget in which the closer people look, the simply not the reason why growth is being held back; it less they like. That might apply to the granny tax, as he is the loss of jobs, of pay and of support through suggests, but it might also apply to the threshold for the working tax credits that is sapping demand and confidence. 40p top rate of income tax, which many people might The Chancellor this afternoon singled out for special find themselves hit by over the next few years, rather treatment those earning more than £150,000 a year, than benefiting from the raised threshold for payment cutting their 50p income tax rate and giving them a tax in the first place. break that is worth more to those people than many in The consequences of the Government’s actions at a Rotherham or Barnsley can earn in a year. With more national level are already becoming clear. The UK than 800 households and families in Barnsley and more economy grew by 3% in the year before the Chancellor than 1,000 families in Rotherham—working hard, working stood up and delivered his spending review in 2010. In part-time—faced next month with the total loss of their the 12 months that followed it grew by just 0.5%. That is working tax credit, which could amount to almost because he took the decision to cut too far, too fast and £4,000 a year or £70 a week, the Chancellor’s decision choked off growth. Based on the economic projections to cut the top rate of tax at this point will simply not be we heard today, this country is still set for feeble growth accepted or understood. in the coming year and the year after. It seems to me Let me turn to several of the Budget measures. Any that a credible economic plan to deal with the deficit performance report on the Government would be hard must be supported by a successful plan for jobs and put to place the Department for Business, Innovation growth alongside it. At present, the Chancellor is and Skills anywhere other than close to the bottom, and condemning Britain to being a one-legged man in a any judgment on policies would be hard put to say that three-legged race. The International Monetary Fund business support policies have been anything other than has made a similar point, stating that close to failure. The Merlin project was supposed to “growth is necessary for fiscal credibility.” lead to a 15% increase in lending this year; in fact there We have to look harder at what we earn as a country, was a net reduction of £11 billion in net lending to not just what we spend. The UK’s GDP last year was small firms. There was a similar failure of the regional still nearly 4% lower than it was before the global growth fund, of the business growth fund and of the financial crisis hit in 2007-08. In other words, our national insurance holiday for small firms. economy was smaller and our national income was I look in this Budget with a degree of welcome, lower. If we draw a comparison with the US or with however, to the new credit scheme for lending to small Germany, we find that both countries have a more firms, and to the new managed funds for lending to balanced approach to dealing with their deficit, both mid-sized firms. Those may be small in scale, but they countries are growing more strongly than Britain and are a start. The margins to make lending more affordable both countries now have economies that have regained may be modest, but the design and concept, at least, are the loss of productive capacity which everybody in the innovative. Interestingly, the schemes signify that the modern, developed world suffered during the global Government recognise that they were wrong when first financial downturn of 2008. elected to say that there was no role for active government and that the private sector would pick up the slack if the Austin Mitchell: That is a very important point. My public sector stepped back. right hon. Friend will know that the Institute for Fiscal The schemes are interesting because they help to Studies Budget forecast makes the point that that 4% reduce risk and cost by using the power of the Government now lost is lost for ever: it is 4% lost every year into the to stand behind them rather than support being funded future. up front. I say to my hon. Friend the Member for West Bromwich West (Mr Bailey), who chairs the Business, John Healey: Indeed, and that is one reason why Innovation and Skills Committee, and the hon. Member Britain is so far off the economic pace, and why so for Chichester (Mr Tyrie), who chairs the Treasury much more must be done than has been so far to boost Committee, that I hope that the Select Committees will jobs and growth in this country. make sure that those schemes do not fail as the other To use the household income analogy, well loved of business support schemes have and that they provide the Tory party, I note that if a household looks to pay more lending and lead to more economic activity and down its debts at the same time as reducing its earnings, support for business in every region of the country. the spending cuts that it must make to do the job have International experience and all the data underline inevitably to be more savage and to last for longer in the fact that, in the long run, high levels of business order to be successful. That is the position this country investment are at the heart of strong economic growth. is in. It seems to me that the case is clear, and has been so If I look at the consequences of the Government’s since the global financial crash and the requirement for action locally, I have to say that in south Yorkshire, our Government to step in and provide big public support area, it is hurting but not working: flat growth, higher to commercial banks, that now must be the time to set unemployment, higher bills, lower confidence. In our up a British investment bank—the sort of industrial 867 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 868 Situation Situation [John Healey] Mr Marcus Jones (Nuneaton) (Con): Does my hon. Friend agree that the current situation, with enterprise investment bank that Germany, Singapore and India zones, the regional growth fund and the support that is have, which can offer strong support to indigenous being given to industry, particularly motor manufacturers research and development, domestic manufacturing and in the west midlands, is a complete contrast with what regional economies. happened with the failed regional development agencies The Chancellor told us this afternoon that, taken during the period of the Labour Government, when together, the anti-avoidance measures in this year’s Finance private sector employment in the west midlands fell? Bill would increase tax revenue over the next five years Gavin Williamson: My hon. Friend makes a pertinent by about £1 billion. It is interesting that table 2.1 in the point. Although there has been recovery in the automotive Red Book indicates only about a quarter of that over sector, unfortunately the supply chain that supports the five years, and that is about half what we did in our those manufacturing companies was hollowed out over first year in government. You, Madam Deputy Speaker, the course of 13 years. I hope that Members on both will recognise in the proposal for a general anti-avoidance sides of the House recognise that that is a serious rule, which I welcome, the same approach that we took problem. I pay tribute to the previous Government for and you fought for, against Tory opposition, in respect taking some action at the tail end of their period in of the disclosure rules in the Finance Act 2004. office in setting up Automotive Council UK, which has This Chancellor’s Budget was a rich man’s Budget. been carried on and strengthened by this Government. He chose to cut the top rate of tax and give a kick-back That is a positive move, but we need to be doing so for the rich—and at a time when the deficit is getting much more to support not only manufacturing companies, bigger, not smaller, when the national minimum wage which I am most passionate about, but many more for young people has been frozen and when the working service companies and other companies across the length families tax credit and public services are being cut and breadth of the country. across the country. This is not a Budget for working The Budget included an announcement on reducing people, and the Government are not working for working corporation tax. A lot of people say, “That does not people. It is not now, and never was, a question, as the matter; it will not make a difference to business.” If that Government claimed, of the richest bearing the biggest were the case, one might ask why the Republic of burden; this Budget proves that the richest are getting Ireland is so determined always to make sure that it the biggest benefit. keeps its low corporation taxes, but we know that it does that because it knows that it makes a difference in 5.8 pm bringing in inward investment. Companies that want to invest in Europe are trying to make sure that they invest Gavin Williamson (South Staffordshire) (Con): It is a in the right place, which, in my view, is the United privilege to speak in today’s Budget debate. There has Kingdom. The moves to reduce corporation tax will been an interesting contrast in the two speeches made have an enormous effect on bringing jobs to the UK—not from the Dispatch Box today.One, made by the Chancellor, only to my constituency or the constituencies of set out his vision and ideas about bringing growth to Government Members, but to every single constituency our economy, supporting business and families and in the country. making things happen in this country. The other speech, We must also welcome the moves to simplify our tax by the Leader of the Opposition, had one interest system. We see so many people setting up small businesses, solely—making sure that he stayed the leader of the giving it a go, and trying to make a difference and do Labour party. It was not about the national interest or well for themselves, but then being faced with a barrage trying to help the country to go forward, but about of bureaucracy and complex regulations that they have remaining leader. to master. It is a shame that anyone could not welcome Those on the Government side of the House, the moves to make sure that all businesses with a Conservatives and Liberal Democrats, are here to try to turnover of under £77,000 will be free of many of those do what is best for our nation. Those on the Opposition regulations. I hope that Labour Members will join us in side cannot say the same about themselves. If they the Lobby in support of that measure, because it will can—and I hope that they are of that mind—they will have an enormous impact on every business. march through the Lobbies with us when the Budget Another development that we must welcome is enterprise vote comes, supporting us and making sure that the loans for young people. Far too often, young people country is growing once more. with great ideas and great ambition do not have the The Budget helps two principal areas—business and finance to build their own businesses. I think of a families. Already, this Government have done more for constituent of mine, Louis Barnett, who decided against my constituents in our almost two years in power than all the odds to set up a business, to go out there and to the previous Government did in 13 years. This Government make a success of it. Finance is not always easy to find, are already delivering jobs for South Staffordshire, with but despite everything being against him, he did it. He the £350 million investment by Jaguar Land Rover on has set up an incredibly successful chocolate company, the i54 business park, bringing 750 jobs directly into the which exports to Mexico, Ireland, China and Korea. He constituency. I remember Labour Members deriding is making a success of it. We need to encourage many enterprise zones and saying that they would not work. more young people to set up businesses across Britain. Well, I am rather proud to have an enterprise zone in my That is what the Chancellor has done and we should all constituency, because it helped to bring in those 750 jobs. support it. We need to give our businesses every possible I am sure that many Labour Members will now want chance. enterprise zones right across the country, even in the Some Opposition Members are pouring scorn on devolved regions. somebody who wants to make a successful business by 869 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 870 Situation Situation making and selling chocolate and exporting it around with a Chancellor who is committed to making business the world. Perhaps that is why the previous Government growth happen. That is why we will grow faster than made such a dreadful mess of our manufacturing base Germany and France. I am sure that the hon. Gentleman and made this country to its knees. will welcome that. I will move on briefly to families. It is often said that Mr Marcus Jones: My hon. Friend’s argument is raising the personal allowance is a Liberal Democrat being given a bit of harsh treatment from Opposition idea. Members will be shocked to hear that the matter Members, who seem to think that all was rosy in was raised with me many times during the general manufacturing under the Labour Government. Is it not election campaign. I told people that if I was elected as the case that 1.7 million jobs were lost in manufacturing their Member of Parliament, I would do all that I could during the period of the Labour Government? to ensure that personal allowances increased so that the lowest-paid— Gavin Williamson: My hon. Friend makes a valid point. Manufacturing was destroyed under the Labour Stephen Lloyd (Eastbourne) (LD): Will the hon. Government. When the Conservatives were last in power Gentleman give way? during the 1990s, there was growth in manufacturing. We saw the same amount of gross value added in Gavin Williamson: I will make some progress, thank manufacturing and the industrial sector in the United you. I told people that I would try to ensure that we Kingdom— made progress on raising the personal allowances for everyone in this country, including the lowest-paid. I Mr Bailey: Will the hon. Gentleman give way? am particularly proud to see that the Chancellor has done that, and I am quite sure that every coalition Gavin Williamson: No I will not. In the 1990s, there Member will warmly welcome it. was the same amount of gross value added in I wish briefly to touch on one thing I would very manufacturing and the industrial sector in the UK as in much have liked the Chancellor to do, which is to tackle Germany. That has now been halved. That is down to the issue of the beer duty escalator. In the Strangers the incompetence and neglect of the last Labour Bar, one of the finest ales, Enville ale, is currently on Government. I happily give way to the hon. Gentleman. sale as one of the guest ales. I encourage everyone to ensure that they have a pint of Enville ale, a fine beer Mr Bailey: I thank the hon. Gentleman for giving but one from which I am quite sure we would raise just way belatedly. As a fellow west midlands MP, I am as much duty if we got rid of the beer duty escalator. I slightly surprised by his comments about the record of put in a plea for that, and it would be very much the previous Conservative Government on manufacturing appreciated. in the west midlands. Will he list the major employers— employers of thousands of people—that failed during I welcome the news that we are going to have a the period of the previous Conservative Government in national centre for aerodynamics. Again, that will support the black country and the west midlands? manufacturing, but let us ensure that it is in South Staffordshire. We have an aerospace industry that is Gavin Williamson: I will happily talk about what highly dynamic and— happened under the previous Conservative Government, although it is going a little way back. Between 1992 and Madam Deputy Speaker (Dawn Primarolo): Order. 1997, exports from the manufacturing base in this country grew and gross value added grew, because we created an 5.21 pm environment in which manufacturers could grow. That Naomi Long (Belfast East) (Alliance): I start by confessing did not happen under the last Labour Government, that I find the Budget quite disappointing, not because when jobs and businesses were destroyed. The Chancellor I had huge expectations of it at the beginning but more is committed to reversing that. I can give many examples because some of the more disappointing things that of businesses that failed under the Labour Administration. have been widely trailed in recent days are indeed in it. This Government are committed to helping businesses I start with a partial welcome, however, for the increase grow, which is to be welcomed. in the personal allowance, because I believe that it will lift a significant number of low-income families out of Geraint Davies (Swansea West) (Lab/Co-op): The paying tax. I qualify my welcome only because, as a hon. Gentleman is being gracious in giving way. I means of tackling in-work poverty, it is a broad-brush should say that my background is in multi-national measure that will benefit the wealthy as well as the poor. companies and in starting my own businesses successfully. Does he accept that after his Government came to When I consider the changes to tax credits and other office, the growth forecasts reduced massively between in-work benefits that have been announced in recent the first and the second year? According to the Office weeks, I believe that all may not be as it seems when it for Budget Responsibility, the size of the economy will comes to who will be most affected. Other Members be down by £50 billion a year for ever because of his have highlighted that point by referring to those on the Government’s policies. lowest incomes, such as those in part-time, minimum-wage employment. Gavin Williamson: I thank the hon. Gentleman for Beyond that, I look to what will create employment making those comments. It is fascinating that the for people in Northern Ireland. Although it is a good International Monetary Fund has predicted that Britain thing to lift people in low-income employment out of will grow faster than Germany and France. It is true paying taxes, it is a better thing to lift people into that the eurozone has had a negative impact on this higher-wage, better-paid jobs and give them opportunities country, but people see us as a country that is well run, to succeed. 871 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 872 Situation Situation [Naomi Long] region, particularly those around the border. The announcement on corporation tax will affect very few A couple of measures that would help the Northern businesses in Northern Ireland. Most pay the lower rate Ireland economy significantly have been talked about of around 20% and I do not believe that they will be for some time, and I want to consider them briefly. My affected, although I am prepared to be corrected if my concern is that the Budget lacks what I would call assessment is wrong. regional sensitivity, for want of a better phrase. One of the significant burdens that businesses in Northern I want briefly to reflect on regionalisation of civil Ireland face, and which has an impact on leisure and service pay and national agreements, which is more for tourism as well as on business travel within the UK, is deliberation in Committee than a formal part of decision air passenger duty. We have raised that many times with making at this point, but it nevertheless causes me some the Government, and to be fair and give credit where it concern. I believe that it could be a slippery slope. It is due, there have been some significant and positive presents risks through a brain drain from the Northern interventions in the case of long-haul flights. Ireland economy, and that is a significant challenge. It is also contrary to the stated UK Government policy of rebalancing the UK economy and reflecting the importance The Minister of State, Northern Ireland Office (Mr Hugo of the regions. Only three regions contribute positively Swire) indicated assent. to the UK economy; the other nine are essentially net recipients from the Treasury. As someone who lives in Naomi Long: I see the Minister of State nodding one of those regions, I would like the economy to be vigorously and looking bemused that I should raise the rebalanced so that we no longer rely on subvention but matter today, but I do so for this reason: although the can make our way, and, as the Chancellor described, intervention on long-haul flights was welcome and positive, work our way out of the situation. However, it is and although I know the Government have recommitted difficult to do that if the general direction of travel to the devolution of the matter to the Northern Ireland inhibits wage increases and competition and has a negative Assembly, which is welcome, I confess that I hoped the impact. It is as though people in Northern Ireland Treasury might take some action on the level of short-haul doing the same job as people elsewhere are somehow APD. That has an impact on what we pay for regional worth less. That is a very bad place to start. flights within the UK and places a premium on our connectivity, particularly with the south-east, which the Although it is true that public sector salaries in some Government reinforced in today’s Budget as the primary areas can rise above private sector pay, particularly in income generator for the UK. the current climate during a recession, we must remember that, not so long ago, private sector salaries well outstripped In addition, businesses in Northern Ireland and local the public sector in the same regions. Indeed, the public consumers are challenged by the double payment of sector had to pay a premium to attract talented individuals APD on flights to other short-haul destinations. That during the boom. We need to be cautious about making occurs when people have to pass through one of the hub decisions based on current circumstances that could airports here in London but not on a through connection, have long-term consequences. The policy could also owing to limited access to direct flights and through reduce work incentives. People say that it may create carriers. I hoped that the Government would take the competition and attract people into the private sector, opportunity to attract new tourism and grow business, and I understand that, but the difficulty is that, with a but it appears that APD is simply to rise as planned contracting public sector, there is no competition for in April. jobs in that sense. We therefore need to be cautious. Many Members have highlighted the impact of fuel costs on both families and businesses, and the distortion I have to say that I see the reduction of the 50p rate of that it causes in the cost environment for businesses in tax as simply a major giveaway to the wealthiest in our regions such as the one that I represent. Fuel prices society. I understand the points that have made about there are high, and transport costs make up a higher property tax, but if the Government want to simplify proportion of business costs than elsewhere because taxation, there are better ways of doing it than through businesses are more rural and remote. Today, there has that reduction. It sends out the wrong message to been little new for those businesses and families, beyond people who are suffering and finding it difficult to make the reiteration of a promise about the fuel duty stabiliser. ends meet. Tax avoidance has also in effect been simplified I hope that it is possible to implement that as a matter because for someone earns a lot and does not invest it in of urgency, but I also hoped for something slightly property, it has been a good day. more on fuel duty. I want to highlight some positive aspects briefly. I I want to consider corporation tax, which we have welcome the fact that Belfast has been included among been discussing at length and for some time from a the cities that will benefit from ultra-fast broadband Northern Ireland perspective. That has been mentioned and wi-fi connectivity. That electronic connectivity is today in the context of the main corporation tax rate. I hugely important for us, particularly in the light of the listened carefully to the Chancellor when he extolled the issues that I raised about APD and transport costs. I virtues of the changes that he would make. He mentioned hope that, when it comes to other cities bidding to gain all those he foresaw as our significant competitors, but from that pot, Northern Ireland will get its fair share. I not the nearest competitor—which will still have a want to share my pleasure at the notion of support for significant advantage over us even at the end of the the creative industries. Film and television, for example, period when the main rate of corporation tax reduces to are growth industries in Northern Ireland. I would 22%—of those of us who reside in Northern Ireland: welcome their expansion, particularly in my constituency— the Irish Republic. It has significantly lower corporation “Game of Thrones” was filmed in the Paint Hall in tax and is a direct competitor with businesses in my Belfast. 873 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 874 Situation Situation Finally, I make a plea to the Treasury in respect of Thirdly, I welcome the lifting of personal allowances, creating a UK centre for aerodynamics to open in which the Liberal Democrats were right to promote. I 2012-13. I hope that it will be a genuinely UK centre. am not going to argue about who promoted it first, but We have a number of aeronautical industries in my it is a useful policy for us to have and we should constituency, including Bombardier, Thales and others. celebrate it. Based on those and the neighbouring aeronautical The final thing I want to celebrate from the headline engineering department in Queen’s university in Belfast announcements is the action taken on child benefits. I South, I hope that Belfast can be competitively considered received a lot of pressure in my constituency about as a potential home for that UK centre. them, right up until the last moment. One person came My concern is that the Budget will be viewed by to visit me in Stroud tourist office while I was doing a many as a Budget mainly for the rich, and perhaps stint to promote tourism week. In fact, he was one of mainly for the south-east. I urge the Treasury to look at many to talk about child benefit instead of buying how it can ensure that that is not the outworking for tickets for various excellent shows and so forth. The fact individuals’ lives. The Chancellor needs to be seen as a remains that we have taken action, and I celebrate that Chancellor for all of the UK, and not a Chancellor just fact. The Government have done a good thing. for those who are wealthy or who live in the south-east. In my constituency, I am having a festival for manufacturing and engineering next month. I am doing 5.31 pm so to celebrate the successes in Stroud, and there are Neil Carmichael (Stroud) (Con): It is a great honour two key messages I want to get across. First, we need to to speak in this debate because it is an important one, invest in our small and medium-sized sectors, particularly given that the Budget is of decisive importance in terms in manufacturing and engineering, and the Chancellor of our economic future. It is also a great honour to has signalled that that is the direction of travel for the follow the hon. Member for Belfast East (Naomi Long). Budget and the Government. Secondly, I want to signal the importance of young people getting involved in There are several reasons why this Budget is a good manufacturing and engineering, because they need to Budget, the first of which is that it reaffirms the need to think about manufacturing and engineering as a career. tackle the deficit, and demonstrates that the efforts to Again, he has signalled that that is a key part of the do so have been successful. That is critical to this Government’s economic strategy. He has signalled many country’s interests, because it is about the price of things, but those are certainly the two that matter most money—interest—and we must secure a long-term, to my constituency. sustainable rate of interest for small businesses, mortgage payers and so on. Chris Heaton-Harris: I appreciate my hon. Friend for Chris Heaton-Harris: My hon. Friend will be interested giving way a second time. I rise to help him with yet to hear the views of John Cridland of the CBI, who said another quote, this time from Paul Everitt of the Society in the reaction to the Budget that of Motor Manufacturers and Traders, who says that these Budget measures “the best news for businesses is that he”— the Chancellor— “will trigger substantial extra business investment in the years ahead.” “stuck to his guns and delivered a fiscally neutral programme…by putting more money in the pockets of ordinary people, the That is obviously a solidly good thing. Chancellor has provided a much-needed confidence boost.” Neil Carmichael: That is another first-class quote Neil Carmichael: I thank my hon. Friend for that from my hon. Friend. He and I agree about many intervention and helpful quotation, because it underlines things, and certainly about this. I thank him very much my point, which all hon. Members should have firmly in for underlining my point again. their minds, because it is the key issue. I want to canter through various critical measures Sensible debt management goes on to secure lending announced in the Budget. One concerns infrastructure. at a reasonable price. We have seen how that has worked It is absolutely right that we invest in infrastructure. The in Italy to some extent and it certainly works here. It is national infrastructure plan is a first-class document the real test of good government, and I am delighted that signals the Government’s commitment to taking that the Chancellor is pursuing it so determinedly. these measures. The recent announcement, confirmed The second thing I am pleased to welcome is the in the Budget, about the possibility of private firms actions on tax avoidance. It is important that we taking over roads is absolutely right. I would say, however, demonstrate that we will not stand for people deliberately that although the Government are rightly reviewing the avoiding tax using inappropriate routes. That the new private finance initiative—it is far too cumbersome, has stamp duty mechanism and the mechanism to prevent left us with a lot of debt and has created difficulties with tax avoidance in stamp duty are scheduled to recoup procurement and so forth—we have to enable the private some £300 million is absolutely excellent news. That will sector to invest more easily in infrastructure. Whatever lead to a total of £600 million, which is well worth the outcome of the review—I hope it is a robust review having. We are therefore sending the right signal and in terms of changing the PFI—we must still encourage getting some useful money. It is a good thing that the the private and public sectors to work together to Chancellor has underlined that. There is annoyance in leverage in the money that we desperately need to my constituency at tax avoidance, and I am pleased to improve our infrastructure. be able to say that we are taking robust action. The On technology, it is great news that we will have a general anti-abuse rule will be extraordinarily useful centre for aviation. I hope that it is in Stroud—it would and a final threat to anybody who goes down that route be very convenient for Airbus just down the road—but in future. wherever it is, it is important that we give that platform 875 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 876 Situation Situation [Neil Carmichael] careers. It is no longer the case that people just turn up, do a job and then retire; this is about a process of for development and technology. Technology matters, development. so I will throw in a comment about broadband, because I want to talk a bit about banking. It is essential that it, too, is part of this story of ensuring that we are we manage to get more money into the right places. One technologically advanced. I visited a firm called Jatech of the things about monetarism in the ’70s and ’80s is in my constituency last week. It is producing some that it was quite a blunt instrument, as is quantitative excellent products for data management, and lots of easing, so we have to ensure that we get money into the different industries and firms are accessing that information. right places. The issue of banking constantly recurs. That means good technology in the computer and The Government have mentioned a large number of broadband industry. We need to celebrate those things too. measures that they intend to take, not least the national We had a great debate last week in Westminster Hall loan guarantee scheme. That is absolutely brilliant and on UK Trade and Investment. We need to ensure that good news, and I look forward to that. However, we this organisation continues to do a lot of good work, so need more banks, with a greater variety of offerings and I am pleased that the Government are talking sensibly more specialisms in appropriate sectors, and more and robustly about encouraging exports and helping competition in the banking sector. We also need to be firms find office space and so forth. These measures in alert to new ways of financing firms and encourage the Budget draw our attention to the need to export, them to think about new ways of doing that. It is not because we certainly need to do that. At the end of the just about the banks, although they need to improve day, it is no good looking at Germany and saying, their lending; it is also about firms themselves and the “Well, they’re doing better than us,” and putting our cultural change we need to bring about to encourage heads in the sand. We have to do as well as Germany small and medium-sized businesses to think out of the and then better still. That is this country’s main mission box when it comes to borrowing money. on economics and growth. Let us ensure that we can I finish with a comment about the business finance promote that. partnership, which is a great scheme. Indeed, the Chancellor Energy is a critical issue. Again, the Government are mentioned it today, with £100 million in the Budget for right to talk robustly about investment in energy. The non-traditional lending, which is exactly the sort of Chancellor is absolutely right to talk about supporting thing I am thinking about. It is also important that we the oil and gas industry. That is great news for firms in continue to recognise, understand and promote the my constituency supplying those sectors, notably in development of supply chains, because they are critical Brazil. For example, a firm in Eastington, Arc, is doing in the SME sector—they really do matter. Interpreting extraordinarily well. However, we need to provide a how supply chains will develop, recognising where the market opportunity for new forms of energy and even blockages are and understanding them as part of the new forms of storing electricity. We need to think about export issue to which I referred will enable growth to that. If we can create market conditions where firms take place, because the component parts of the chain feel comfortable about investing in new technology that will understand that process and be ready to support has not yet properly taken off, but which can add value and buy from each other. to our energy infrastructure and provide that platform, This is a good Budget, but there is a lot still to do. so much the better. Lord Heseltine will be talking about bringing the 5.43 pm private sector and Government together—absolutely, Mr Adrian Bailey (West Bromwich West) (Lab/Co-op): and it is great that he is looking at implementing an The Chancellor opened his statement by promising us industrial strategy, as it were, and how that could best that this is a Budget that “rewards work”, “backs be done. There are some good examples of what can be business” and “is on the side of aspiration”. Fine words, done in countries such as Germany—I mention Germany but I remember the last Budget, which he said would again, but it is worth looking at other countries, especially “put fuel into the tank of the British economy.”—[Official Report, when they are doing so well. I remind the House of 23 March 2011; Vol. 525, c. 966.] Germany’s market penetration in countries where we I have an uncomfortable feeling that in one year’s time, I might not normally expect it, such as China and India, will be looking back on the Chancellor’s opening words and so forth. We have to understand how the Germans today with the same scepticism and cynicism with which do that and learn a few lessons from them. That is I look back on the words that he used to describe his something that the Treasury, the Department for Business, previous Budget. The fact remains that this Budget is Innovation and Skills and other agencies of Government set against a background of increasing unemployment, would do well to consider. a squeeze on living standards and flatlining economic The Chancellor quite properly referred to education growth. It was significant that Government Members and training, which we really have to focus on. I am were so enthusiastic about the revised Office for Budget absolutely delighted that, in the Budget and elsewhere, Responsibility projection which showed that the economy the Government have made a lot of the importance could grow by an extra 0.1%, given the fact that the of skills training and education. The Chancellor said economy is performing way below the Chancellor’s that we could put all the fiscal measures in place, but original projections. I sensed a hopeless clutching of we really need the people to make it work—he did not straws. use those words exactly, but that is the point he was trying to get at. We therefore have to do it. We have to Andrew Bridgen: Is the hon. Gentleman aware of ensure that the resource we have in this country—our recent predictions that the UK economy will grow twice people, all of them—have access to decent education, as fast as the German economy and three times as fast which will enable them to adapt and develop in their as the French economy this year? 877 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 878 Situation Situation Mr Bailey: I am afraid I do not read comics such as inflate the economy and improve the demand side, more The Dandy, and I have not come across any such companies would become more viable in the future and predictions at all. I do not think that they are in the more companies would be able to access the scheme. OBR’s projection, either. The fact remains that while access to finance is still a From the moment the Chancellor came into office, he barrier for many sound companies, this is not the only has ruled out any intelligent debate on the right balance issue. Many companies are not going to the banks of supply-side and demand-side measures that would because their future market projections are such that achieve a level of economic growth that would eliminate they do not have enough confidence to invest any more. the deficit and provide employment. When the Labour Although there has been a very modest improvement in Government left office, the economy was growing, business confidence, it is still very fragile overall, and unemployment and inflation were falling and our public this measure alone is not likely to counteract it. sector deficit was declining, but the Chancellor seemed The Institute for Fiscal Studies projections show that to think that that was all wrong, and that the only recipe we are only a quarter of the way through the public was austerity. His justification for that was the perceived sector cuts. If future public sector cuts designed to threat that a credit rating agency would downgrade deliver on the Government’s objectives result in further Britain’s triple A status, with all the horrors that that unemployment, I foresee only a further squeeze on the would entail. I congratulate the Chancellor on one financial situation of individuals and a further decline thing: he has transformed credit rating agencies from in the domestic market needed to give those companies being the most anonymous part of our financial services the sort of confidence they need. infrastructure into bedroom monsters that he conjures An earlier speaker mentioned the national insurance out of the wardrobe to frighten anyone who has the holiday that was introduced in a previous Budget. No temerity to question the underlying philosophy behind mention of that whatever was made in this Budget; it the measures that he is taking. We have to suffer job has been a colossal flop. However, small businesses are losses, cuts to our public services and pay freezes, because campaigning up and down the country, arguing that if if we do not, Moody’s and Fitch will get us. That is the this were reshaped and if the money that has not been Chancellor’s underlying approach. used were ploughed into it, all small businesses could qualify, provided that they employ more people. That Barry Gardiner: Could they possibly be the same would be a relatively minor tweaking to the Government’s Moody’s and Fitch that gave Lehman Brothers its triple Budget strategy, yet it could result in a significant A rating? increase in employment and a significant increase in demand. I am disappointed that the Government did Mr Bailey: I think they probably were. not look at that. After we have endured two years of pain since the On construction, much has been said about the national Government came into office, Moody’s and Fitch have infrastructure plan. Fine, it is a great plan, but it is rewarded the Chancellor for all his efforts by putting being projected as if having a plan results in delivery. So Britain’s triple A rating on negative outlook. The monsters far, what has been conspicuously absent is any sort of have turned on their master. The pain has been in vain, funding mechanism to achieve this. We have heard and the Chancellor should acknowledge that and start about using pension funds, which may be a great idea, genuinely to consider a more balanced approach that and we have heard about private investment, which would enable us to implement the changes that we need may also be a great idea—we will see. The key point is to grow our way out of the deficit. that until there is a model for the financing of the I remind Members that it was only last August when delivery of these infrastructure plans, these are really the Chancellor sneered at the American model and told pie-in-the-sky ideas. I have an uncomfortable feeling us that the American economy was growing more slowly that these so-called plans are being used as a substitute than Britain’s. Now, however, America has taken a for doing something. balanced approach. Its economy grew 3% in the last The construction industry needs action on this level. quarter of 2011, and it is predicted to grow further. Its Having enjoyed a revival in 2010 and early 2011—largely deficit is predicted to drop next year, as is its unemployment. as a result of contracts initiated under the previous The fact is that the model that the Chancellor sneered at Labour Government—it is now shrinking. As of this is actually delivering, while his is not. Last week, when I moment, employment is predicted to drop by 45,000, saw the Prime Minister having his cosy discussions with with a further 3% in output in 2012. If the Government President Obama, I wondered whether he might have really want an infrastructure-led revival in our economy, taken him aside and said, “Mr President, how is it that they need to move quickly. We have the companies you have got your economic strategy so right and my capable of delivering it, and we have the skills within Chancellor has got his so wrong?” But perhaps that was those companies; what we need is Government action. just a fantasy. Let me make one qualifying point. About 60% of the Parts of the Budget are good, and they might help, projects in the national infrastructure plan are based in even though they deal with the supply side, when the London, but the greatest unemployment in the construction demand side needs to be addressed. The national loan industry is outside in the regions, so the plan needs to be guarantee scheme is obviously a welcome measure, and revamped to take that into consideration. some companies will benefit from it. However—this The Government are certainly making all the right might be a good thing for those companies—some noises about exports. What the Chancellor did not companies that use it would have invested anyway, while mention is that if we are to expand our exports to the companies on the margins will not be able to access it: BRIC countries—Brazil, Russia, India and China— they will run up against the same problems as before. reducing UK Trade and Investment’s budget by 17% is One cannot help but think that if more were done to perhaps not the best way of doing it. Also, he did not 879 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 880 Situation Situation [Mr Bailey] decisions, but we are probably not cutting public expenditure enough to keep interest rates low. We are cutting what mention that two of the most significant growing markets would otherwise have been a runaway increase in the that we need to access, India and China—other Members deficit, and that is very different indeed. have talked about this—are, as a result of the visa The decisions that the Chancellor faces are extraordinarily regime, hugely concerned about whether Britain is open difficult, and he is conducting himself very well. I have to business. There is considerable evidence that that is watched him ever since he was a freshman Member of damaging our economic relations with them. Parliament, serving on the Public Accounts Committee. My last point is very much a personal one. As a What he is achieving, both on the deficit and on many long-standing co-operator and as a believer in mutuality other things, is important and courageous. The other and employee share ownership, I believe that measures brave thing that he has done today is deal with the issue should be taken to foster and develop employee share of the 50p top rate of tax. I know that that is not ownership in this country. There is a huge body of necessarily populist. I listened to the speech by the evidence demonstrating that it leads to greater employee Leader of the Opposition, which was very good, and and consumer satisfaction, and greater productivity. afterwards I congratulated him on it. It was good The tax allowable savings rate for members who wish to politics, and it appealed to his people, but the question invest in their companies has not been increased for that the Labour party has to ask itself is: does it want its donkey’s years. The Government have said that they leader to give a speech that appeals to his core supporters, will review it. Given the commitment made by both the or a speech that addresses the real problems of the Prime Minister and the Deputy Prime Minister, I would country? This is the problem in respect of the top rate have wished for something a little more solid than that, income tax payers: the top 1% of taxpayers pay about and I hope that the review will deliver it. 28% of total taxes and they are highly mobile in the way that they conduct their lives and their businesses, and Several hon. Members rose— simply imposing a 50p tax—which Tony Blair and Mandelson resisted year after year—does not actually Madam Deputy Speaker (Dawn Primarolo): Order. achieve anything for the economy. It may be good Eight speakers have indicated that they wish to speak, Labour politics, but it does not achieve anything for the so I am taking the time limit down to eight minutes. I economy. As we heard from the Chancellor today, it is hope that Members will be courteous to everyone else in only giving us about £100 million. Therefore, although the Chamber, so that we can ensure that everybody who this measure may not be popular, it has to be taken if we has applied to speak today gets in this evening. are to revive entrepreneurship. The task facing the Chancellor is very difficult and 5.56 pm complex, but he has set about it in the right way. He is Mr Edward Leigh (Gainsborough) (Con): It is a pleasure trying to close many of the tax loopholes. The difficulty to follow the hon. Member for West Bromwich West here, however, is that we do not want the very rich just (Mr Bailey), who always makes his arguments well. I to bury their money in the ground. Instead, we want apologise for the fact that I cannot stay for the whole of them to be “white knights”, to set up businesses and to the rest of the debate; I wish to attend the memorial become entrepreneurs. Indeed, many of the so-called service downstairs for David Atkinson. I will take this tax avoidance schemes were designed by previous opportunity to pay tribute to him on the Floor of the Governments to encourage the rich to invest in business. House. He served the House with tremendous distinction The Chancellor has also taken a brave decision on for many years, particularly in the Council of Europe. child benefit. I was critical of his original proposals, He was particularly hard-working on promoting democracy although I understand why he suggested them. There throughout Europe. was the overriding need to deal with the deficit, and his I see my neighbour, the hon. Member for Great child benefit reforms were going to save £2.5 billion. Grimsby (Austin Mitchell), on the Opposition Benches. There was also a desire to “detoxify” the Tory brand, We have been in the House together for a long time, and and to attack higher income tax payers. There may have we have heard many Budgets. I said to my wife this been some pressures within the coalition, too. However, morning, “We have heard so many Budgets. Will this be we all know that the Chancellor’s original proposal just another Budget that takes with one hand and gives would, as it were, have created a cliff edge and would with the other?” but I think it is a very courageous have been fundamentally unfair, because the situation Budget that is rather different from many that I have would have been very different for a family with one heard. I have sat through so many—from Nigel Lawson, higher tax earner than for a family with two taxpayers John Major and the previous leader of the Labour whose earnings are just below the £41,000 limit. party. The Chancellor has taken the courageous and right The Budget is courageous for two reasons. First, my decision to try to deal with that problem, but we still right hon. Friend the Chancellor is persevering with have a long way to go, and I believe that a better way dealing with the deficit, which is the greatest problem forward would be to have a tax allowance. That would that we face. Politically, it is in the interests of the solve the problem of the higher income tax payer family. Labour party to claim that we are indulging in a tremendous In France, instead of getting child benefit, couples are campaign of cutting everything in sight. One of the given a family tax allowance, which is spread between problems that it faces is that it knows perfectly well—as themselves and their children, irrespective of their income. do the public—that, if it had remained in power, as it An adult counts as one unit of tax allowance, and very nearly did, it would have done much the same as children count as half units. Therefore, a married couple us. It is also politically convenient for the Government, with two children are given three units-worth of tax of course, to proclaim that they are taking difficult allowance. As a result, the level of income at which they 881 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 882 Situation Situation start to pay tax is higher than it would be in Britain. longer period of running that tax. The public did not That system has the added advantage of addressing the want the cut in that tax, which demonstrated that we perverse incentives against family life and couples staying are all in it together, but it has been cut and the Liberals together. have got very little in return. I will continue to argue that the Government must I am not sure what the Liberals were expecting, fulfil their pledge to recognise marriage in the tax because what is the Tory party about but helping the system. Critics of my arguments often say, “Just a little rich? After all, this is a Government of millionaires, tax break isn’t going to make people get married or stay for millionaires, by millionaires, so we would not expect married.” That is perfectly true, but what we currently them, as the Liberals seem to have done, to be giving a have is almost a perverse incentive against family life. A tax increase to the rich. What they have given is a married couple where one parent stays at home to look couple of symbolic pecks at wealth, but they are after the children are hugely more taxed than almost more like love bites than serious damage. It does not any other taxpayer. We do not want to create a tax help that the Government have raised tax allowances in break for marriage because we think that that alone will the way that the Liberals wanted. It was a good idea to deal with the wider problems; we just want to right an raise them, but I must point out that that does not really injustice. help the poor who do not pay tax, or pensioners—it The Chancellor has remained true to the overriding does not compensate for the VAT increase, for the loss need to have a fiscally neutral Budget and to attack the of tax credits and for the child benefit cut. The main deficit, has demonstrated a determination to promote benefit goes to the second highest decile of taxpayers, entrepreneurship even if that means taking unpopular rather than to those at the bottom. So that is the only decisions, and has courageously recognised that he may crumb they have got out of it. The coalition Government have made a mistake on child benefit and that he should are beginning to look like Downton avenue, with the try to reform the system in a more equitable way. millionaires living upstairs—[Interruption.] Sorry, I meant Although the Budget may not be popular with everybody, Downton Abbey. I was thinking about Coronation Street. it is certainly a good Budget, and the right Budget for We have a Government of millionaires living upstairs the nation. and the domestic servants are downstairs grumbling, because the only prospect they have now is to go hawking 6.4 pm their consciences round television studios to explain why they are getting nothing out of this coalition. Austin Mitchell (Great Grimsby) (Lab): I cannot agree with my neighbour, the hon. Member for Not only is the Budget not fair—it is certainly not Gainsborough (Mr Leigh), on this Budget, because fair to the north and to the area I represent—but it has from both a Labour and an objective point of view it is failed Kaletsky’s second requirement, because it is not a pathetic Budget. It is justified by a lot of bravado and pragmatic. It is an ideological Budget because it is bluff, but it does nothing about the major problem of obsessed—still crazy over Thatcherism, after all these an economy that is nearing recession and needs drastically years—with debt. The problem of this country is not to boost growth if we are to get out of it. The Budget debt. If there is growth, debt can be easily paid off, as even fails the five tests for a successful Budget that the Labour Government did between 1997 and 2000. Anatole Kaletsky proposes in today’s The Times. The The problem facing us is a lack of demand. That is why three most important of those are that the Budget shops are closing in the high street and chains are going should be fair to all—this one is not; that it should be bust. Firms are not growing, investing and expanding pragmatic, which this one is not, because it is ideological; because they cannot see a demand for their products. and that it should be relevant to the problems of the As long as that remains the case and as long as there is day, which this one is not. that uncertainty, we shall not get economic growth. People are being given more hours in which to shop What this Budget does is prolong the failed policies with money that they have not got. Demand is crucial of the past two years of cut, freeze and squeeze, which to this economy. It is far too low and it needs to be are not working and need to be ended. The Budget is a boosted, but it is not being boosted. There must be a disastrous prospect for the Government, because this is boost to demand. the hinge point of power and this Budget means that, instead of strolling to a tax-cutting election victory in That brings me to the third failure in the Kaletsky 2015, they are faced with flatlining. The huskies pulling tests. The Budget is not relevant to the economy as it is the sledge are going to have to pull even harder to get it today. We are an economy verging on recession. We moving at all. We have already lost 4% of GDP—the have had a massive loss of growth. We need growth and economy is that much smaller, according to the Institute there are only two ways of getting it. The first is by for Fiscal Studies—and that will never be made good. monetary means. The Bank of England is doing its best We face flatlining, as Japan did in its wasted decade. with quantitative easing, but that is going into the The Liberal Democrats have made a desperate attempt banks, which are not lending it. It is building up their to distract attention from that failure. They argue that reserves, rather than going out to the people who spend the rich have been taxed to show that they have got and generate demand. Secondly, there is the fiscal weapon, something out of the coalition. They were trying to which the Chancellor obstinately refuses to use. Only stop the reduction from 50 to 45%, proposing a mansion growth will pay off debt. Unless we get growth in the tax, a tycoon tax—perhaps it was a Typhoo tax—or economy, there is no chance of paying off the debt in something to tax wealth. Well, we have got the cut in the the way that the Chancellor wants. The only way we will 50% rate, which the HMRC study did not prove brought get growth is to borrow, to spend and to let the multiplier in big revenues. However, it did not wait for the deferred work its magic, as Keynes told us it would. That would taxation to come into play—it would do so only with a work, but these policies will not. 883 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 884 Situation Situation [Austin Mitchell] year, at the same time as a growth rate of 1.7% was achieved. This fact completely contradicts the inaccurate Simon Jenkins suggests helicopter money—putting claims of the Leader of the Opposition in his Budget the money in a helicopter and dropping it out on the response and those in the Labour party who still cling people, who will spend it. If it drops out on Grimsby, I to the misguided mantra that the only way to obtain will be very grateful, but a more sensible way would be economic growth is through fiscal stimulus. When will to use the money from quantitative easing to sign they learn that they cannot borrow their way out of a contracts for a big house building programme to create debt crisis? public housing for rent, which is badly needed in this There is, however, no room for complacency and the country, and for big public work contracts. Some of the economy needs to start growing at a faster rate. I money should be put in a national investment bank, welcome the measures outlined today that will stimulate with an industrial policy to invest in manufacturing and the economy and see taxes cut for 24 million taxpayers expansion. That is the way to spend the money from through the increase in the tax threshold. That is another quantitative easing. example of the Government’s commitment to the lowest- The Bank of England cannot do that. All it can do is paid and stands in stark contrast to the actions of the buy debt and give the money to the banks, which stash previous Prime Minister, who removed the 10p starting it away in their reserves. The Chancellor can decide that rate of tax in his final Budget, hitting the lowest-paid the money printed by quantitative easing should be the hardest. The increase in the personal allowance to used for those benign purposes, and he should, because £9,205 is very welcome and will lift an additional that would give us growth. Also, there should be municipal 66,000 people in the east midlands alone out of income bonds for house building, as we used to have, to boost tax and benefit more than 1.7 million individuals nationally. the finance for house building. The Government will have lifted a total of 148,000 people The Budget is a failure which foretells three years of in the east midlands out of tax at this rate. bumping along, not on the bottom, but flatlining for an Another damaging legacy of the previous Prime Minister economy which desperately needs to grow to compete was the 50p rate of tax—a purely political and cynical with the Americans, whose economy is growing, and to attempt to lay a bear trap for the Conservative party. As benefit from their growth. The economy should be my right hon. Friend the Chancellor explained, it is stimulated by public spending and projects such as raising little or no money and damaging the competitiveness house building to get us out of the mess we are in, and I of our economy. It was a Trojan horse of a tax. It raised do not see any symptom of that following this Budget. no money and at the same time damaged our economy.

6.12 pm Mr Stewart Jackson (Peterborough) (Con): Is it not the case that the Opposition have no credibility on this Andrew Bridgen (North West Leicestershire) (Con): I issue, because even though the shadow Chancellor knows draw Members’ attention to my declaration in the Register that the 50p rate damaged entrepreneurship and collected of Members’ Financial Interests. very little revenue, he still refuses, even this afternoon, The Budget is set in the context of continued uncertainty to confirm that the Labour party, if in office, would in the global economy, but it is a Budget that binds bring it back? many threads of Government policy as we seek to reward work and enterprise and to rebalance our economy. Andrew Bridgen: My hon. Friend is absolutely right; The House would do well to remember that it is only by they have no credibility and will not confirm whether virtue of the deficit reduction plan set out by my right they would bring the rate back. I remind the House of hon. Friend the Chancellor in June 2010 that the UK the comments of their former leader, Tony Blair, who has managed to achieve a relative safe haven status and stated: achieve record low interest rates, which will save the “I wanted to preserve, in terms of competitive tax rates, the taxpayer a projected £36 billion over this Parliament. essential Thatcher/Howe/Lawson legacy. I wanted wealthy people The Chancellor today announced measures that will to feel at home and welcomed in the UK so that they could bring allow companies and individuals further to share in the more business, create jobs and spread some of that wealth around.” benefits of these low interest rates, achieved no doubt Whatever happened to new Labour? Even Mr Blair by international acceptance of the fiscal competence of accepted that the top 1% of earners pay almost 30% of this Government’s policies. The deficit reduction plan, the taxes in this country, and many other countries however, is not just about reducing the size of the certainly feel the same, but our top rate of tax was the increase in Government spending; it is also dependent highest in the 10 largest economies in the world. on achieving growth. Although the eurozone crisis has damaged economic growth rates across the continent Mr Marcus Jones: While my hon. Friend is on the and globally, it is a testament to this Chancellor and subject of tax, will he join me in welcoming the comments this Government’s handling of the public finances that of the Birmingham chamber of commerce today that the deficit reduction figure was ahead of target this the Chancellor’s tax reforms are a recipe for growth? year, while at the same time achieving a growth rate in the economy of 0.8%. Andrew Bridgen: I certainly will. As my constituency As we have heard during the debate, the Opposition is only 22 miles from Birmingham, I always listen to try to argue that deficit reduction is being pursued at what its chamber of commerce has to say. I am sure that the expense of growth, and America has been mentioned. it also welcomes another signal that this country is open They should look at the International Monetary Fund’s for business: the acceleration in the cuts to corporation fiscal monitor, which shows that fiscal policy in America tax. These changes will encourage business investment, was tightened by 0.8% of gross domestic product last support growth and create jobs. My only regret about 885 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 886 Situation Situation the announced cut in corporation tax is that Ken The Government might think it prudent to delay the Livingstone stands to gain from the devious arranging pain, but Government Back Benchers might care to of his tax affairs. I also welcome the announcement of reflect on what that has done to their electoral prospects. loans for young entrepreneurs, which displays a commitment, not always shown by the previous Mr Robin Walker (Worcester) (Con): The hon. Government, to open up opportunities for young people Gentleman mentions the figure of £90 billion, but will who choose not to go to university. he acknowledge that the £36 billion reduction in interest We are all well aware of the over-complicated and payments, which we have already seen, makes a substantial incomprehensible tax system left by the previous contribution to that? Government. The Chartered Institute of Taxation stated shortly after the election: Barry Gardiner: The hon. Gentleman refers to interest “The UK now has the longest primary tax code, and one of the payments, but he knows that on that score this Government most complicated, in the world.” are paying out £150 billion more than they predicted, so We all know that this is stunts growth, and I welcome his argument does not hold up. the tax simplification measures announced today in the A Budget is a mechanism for the distribution and Red Book, which abolish 28 reliefs and will make the allocation of scarce resources, so let us examine what tax affairs of small businesses, the lifeblood of our this Budget means for a child born today. A child born economy, much simpler. However, this Budget needs to in my constituency today brings us this message: “By be the beginning of the work on tax simplification, not the time I reach my 18th birthday, the world will require the end. We have all become aware of the stamp duty 30% more fresh water, 45% more energy and 50% more loopholes that have been ruthlessly exploited through food.” This child is part of the generation that will see schemes such as subsale relief and individuals, through the global population move from 7 billion to 10 billion companies, avoiding stamp duty on multi-million pound people. How do we respond to this child? Do we become houses. I welcome the action the Chancellor has taken the most selfish generation of the most selfish species in to close this embarrassing loophole. our planet’s history? Or do we become the generation I welcome also the announcement on regional pay that understood that justice and sustainability are essentially bargaining. The Opposition will argue that it widens the the same thing? If you want peace in the world, create north-south divide, but I argue that the north-south justice. If you want justice, live sustainably. divide is being perpetuated: areas have become so hooked We must get away from both sides of the political and reliant on public sector jobs that the private sector, divide arguing that they uniquely possess the key to which cannot compete with the pay and conditions growth. We listen to the stale arguments about whether agreed nationally by the public sector, is stifled. We more spending now will raise growth and reduce the need more of our brightest and best to enter the private deficit more quickly, or whether less borrowing now will sector, which in many parts of the country struggles to ultimately be a surer path to bring our economy back compete with the pay and conditions on offer in the into GDP growth. But what both sides are talking public sector. about is yesterday’s economics: Hayek pitted against Keynes. I welcome the measures announced to help military The Chancellor wants to set markets free and insists personnel, particularly doubling the rate of council tax that we cannot spend our way out of debt, but he rebate and doubling the rate of family welfare grant. wilfully ignores Hayek’s equal insistence that the boom That is another example and extension of this Government’s gets started with an expansion of credit—the very liquidity commitment to the armed forces, and, although the that the Chancellor has told the banks they must provide announcement of £100 million of investment in military for business. Hayek would have been appalled to find accommodation is long overdue, it will be welcomed by his theories invoked by a Chancellor literally printing all service families. money through quantitative easing. In Hayek’s view, We cannot tax our way into prosperity any more than that leads only to unrealistically low interest rates and we can borrow our way out of a debt crisis. This is a to the cycle of boom and bust starting all over again. Budget that is symbolic of this Government’s principles—to Keynes of course believed in consumption-led growth promote fairness and to reward work and enterprise so as an economic stimulus, but he did not live in a world that we can start to earn our way back to prosperity. of 7 billion people. He assumed that growth was sustainable and natural resource was, for practical purposes, infinite. We know that it is not. As a result, we have an obligation 6.20 pm to make sure that growth is sustainable, not simply to Barry Gardiner (Brent North) (Lab): The trouble assume that it will be. with Budgets is that they tend to operate on a five-year cycle that has no relation to the actual cycles of the Mr Jackson: The hon. Gentleman is making a cogent resources that we profess to manage. The immediacy of and interesting argument. We all agree that we should the political triumphs over the requirements of the give 0.7% of our GDP to international development. actual. Surely he will concede that unless we grow our GDP, The focal point of this Budget is 2016-17, when the the absolute amount of cash that we have to give to Government hope that the hole in the public finances good causes across the world, in supporting sustainability, will have been filled, but interestingly four fifths—more will not be enough to do the things that he wants to do. than £90 billion—of that filler comes from cuts in services and benefits, while only one fifth comes from Barry Gardiner: The hon. Gentleman precisely rises in tax. Yet 73% of the tax rises have already been misconstrues my point; the issue is not about the amount put in place, and less than 20% of the cuts in services of aid given to developing countries, but about and benefits have happened. understanding the valuation of natural capital and 887 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 888 Situation Situation [Barry Gardiner] £20.2 billion. That is the cost of respiratory and other diseases associated with poor air quality, both in treatment incorporating that into the Government’s accounting and lost productivity. framework. That is in the natural environment White The natural environment provides not just a physical Paper, if he cares to read it. stock of resources—forests and fish, minerals and fresh In a world of 7 billion people, growth can be sustainable water that human beings depend on—but a network of only if it is predicated on advances that bring increased services essential for human life. The pollination of our productivity and greater efficiency in the use of resources. crops by insects, the stabilisation of our soil by trees That is what Hayek would have called a sound capital and the regulation of our watershed by peat bogs are structure and proper allocation of capital. For the just some of the ecosystem services that a new economic world to continue to achieve a 3% per annum growth model must begin to incorporate into our Government’s target, and to maintain a trajectory that keeps carbon accounting framework. That new accounting renders emissions below the 2°C threshold of dangerous climate inadequate the concept of GDP growth because it change, we must increase our productivity per tonne of reveals one of the central conundrums of classical carbon emitted 15 times over. economics: that a country can become poorer while increasing its GDP. The Budget simply does not address that technological challenge. It was extraordinary to see the Secretary of The Chancellor said nothing today that showed that State for Energy and Climate Change join forces with he understood that. Another important consideration is the Treasury last Friday evening and issue a press that those wider benefits, although immensely valuable, release at 6 pm, embargoed until midnight, to exempt do not accrue to an individual private property owner; gas-fired power stations from the emissions controls set they are experienced by a community at large. They are out in the fourth carbon budget by the Committee on regarded as free goods by the wider community, and in Climate Change. Those emissions reductions were, in classical economics as externalities, and because they the Committee’s view, part of the necessary regulatory are not directly captured by a landowner they rarely framework for achieving our target of at least 80% emissions feature in a landowner’s decision on how or whether to reductions by 2050. dispose of them. That is why the exercise of private property rights can often be to the public detriment. It The press release set out no alternative mechanisms is also why the role of the state in regulating the that would be adopted to keep to those targets and disposal of land is so important. Today we have heard no Minister has sought to expand on the issue since much talk of stamp duty and how to raise revenue from last week. It is a measure of the shame that the the rich. It therefore seems quaint that no one has Government felt on reneging on the fourth carbon commented on the fact that the land registry for England, budget that they issued their press release in such a which was established in 1928, still accounts for only furtive manner. What is worse, what happened shows some 64% of the land in England, while in the registry that the new Energy Secretary has no command over his for Scotland the figure drops to a mere 21%. brief and has been fingered by the Treasury as a weak Of course, there is a reason why almost a century Secretary of State. later we have not yet been able properly to map the title Since William Ewart Gladstone instituted the modern of land in the UK—it is that so much of it has never accounting and budgetary processes of the House of been sold but has been passed down in families, from Commons 150 years ago, modern economics has come parent to child, in enormous estates. If the Government a long way in its understanding of capital. In Gladstone’s genuinely want to raise tax from the very wealthy, they day, the notion of capital was very simple; it represented should examine not only houses sold for over £2 million money and machinery. Gradually, we have come to but the vast tracts of our country that have been realise that capital is not just money and plant. We have accumulated in great estates for centuries and are still developed sophisticated concepts of social and intellectual owned and managed not for the benefit of the population capital. We know that a well functioning legal system is at large but to maximise the income and pleasure of a very much a part of the wealth of a society, inviting very few private individuals. I do not claim that all commerce and trade to practise where certainty and hereditary estates are badly managed in respect of the redress prevail. That is certainly a form of capital environment, but I do claim that good management different from a bridge, printing press or motorway, but comes not only as a result of inheritance. Land tax we now measure them all in our assessment of the reform is long overdue. If we wish to become a more national wealth of a country. equal society, then we need to consider the taxation of Resource economists now point out that we have left land and land use in different and more imaginative out of our economic calculations perhaps the most ways, for the benefit of society as a whole. important capital of all: natural capital. We have left it The Chancellor sought in his Budget to bury another out for a very simple reason—we always took it for important piece of environmental news. Next Tuesday, granted. We thought that it was a free good. It cost us the new national planning policy framework is published. nothing and we assumed the supply was infinite. In the That deserves our attention not least because we know language of classical economics, natural capital was a that the Chancellor takes the view that the planning mere externality, “as free as the air you breathe”. system is a blockage to economic growth. The NPPF will cause havoc up and down the country as planning What we have now begun to realise is that the air we uncertainty and ambiguity filters down to local breathe is not actually free—at least, it is not without a communities. Fundamental to the new framework is the quantifiable value. Any sound cost-benefit analysis of presumption in favour of sustainable development. In public policy must take that value into account. The practice, this means— Environmental Audit Committee report on air pollution estimated that the costs from air pollution are up to Mr Deputy Speaker (Mr Nigel Evans): Order. 889 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 890 Situation Situation 6.31 pm industry is failing. There is market failure in the pension fund management industry and the annuity industry. David Mowat (Warrington South) (Con): I will talk There is a massive asymmetry of information between about four areas: tax avoidance; the effectiveness of the the industry and the people it purports to serve. Charges Budget in terms of pension tax relief; regional policy; are out of control. I am delighted that the National and some aspects of green policy, which may not be Employment Savings Trust is coming in. There are entirely coincidental given the speech by the hon. Member limits on who NEST can serve and how it can serve for Brent North (Barry Gardiner). them, which were forced on the Government by the On tax relief, I am pleased that the Chancellor announced industry. that the Aaronson review is to be taken forward and It is time to look again at the whole area of pensions. that we are to have a general anti-abuse rule. Sometimes In particular, we should look at what the Government Government Members express concern about retrospective spend on tax relief. They spend £8 billion on higher rate legislation as though it were all about Magna Carta and tax relief and £30 billion on tax relief in total. If that attacking the rights of the individual. In this case, tax relief was going into people’s pension pots towards however, we are talking about predatory and abusive their retirement prosperity, that would be one thing. tax practices. About a week ago, I received an e-mail The truth is that 31% of pension pots go on charges. It from a firm of accountants telling me about a tax is possible that that rises to 50% of pension pots when scheme based around film tax credits—it was presumably churn costs and the rest of it are taken into account. perfectly legal—and suggesting that there was a way for me to pay no income tax. If I am getting such e-mails, I would have liked the Government to remove higher others are getting them too. It is high time that these rate tax relief in the Budget, because frankly it is a schemes were put away for ever. I am pleased that the subsidy for a chunk of the investment management Government are going to move forward on that, although industry in the City. At the same time, I would have they may wish to consider some kind of de minimis liked them to reverse the raid on pensions undertaken limit as regards how the measure would work in order by the right hon. Member for Kirkcaldy and Cowdenbeath to avoid over-zealous tax inspectors getting in the way. (Mr Brown). That could have been done easily with the money, and they might have been able to increase the I am particularly pleased about the Government’s overall rate of old-age pensions with what was left over. announcement on stamp duty. For the past three months, Indeed, if we removed all tax relief on pensions from we have known that this measure was coming and that this failing industry, we could increase the old-age pension the loophole would be closed on 21 March, and I have by 60%. That model would put us much closer to how been concerned about that, given what often happens in continental Europe deals with this matter, and we could such cases. I assumed, rightly I think, that across London still encourage savings through individual savings accounts in particular estate agents and solicitors were putting and the like. houses into companies in order to avoid the measure. I was therefore delighted when I saw the detail of the My hon. Friend the Member for North West proposed legislation, which, as far as I can see, fixes this Leicestershire (Andrew Bridgen) said that he was in practice. The Government are going to consult on a favour of the regional pay policy. Anything that the proposal that will force people to take their houses out Government do in that regard must be evidence-based. of such companies and, presumably, pay tax at the new Taking money out of the regions is not, on the face of higher rate. I commend whichever civil servant thought it, the easiest or best way of changing the north-south of that. Tax avoidance matters; it strikes at the heart of divide. In the last year of the previous Government, the notion that we are all in this together. London had double the gross value added per head of the English regions. We must tread carefully. The Before I leave the subject, I would like to discuss it in Government must make fixing that statistic a priority. the context of the BBC. Members on both sides of the In no other country in the world—not in Germany, House will remember the “Newsnight” exclusive about France or Italy—does that sort of discrepancy between the head of the Student Loans Company who was not the capital city and the regions exist. We must be having tax deducted at source even though he was, to all circumspect about the regional pay policy. intents and purposes, a full-time employee. The Government have correctly agreed to fix that and to undertake a I was pleased with the announcements in the Budget review of the rest of the public sector. I sent a freedom on the northern hub and the Manchester earn-back of information request to the BBC, asking it how many model. However, I was disappointed that of the £30 billion of its employees did not have tax deducted at source. of infrastructure spending that the Chancellor announced The answer was that 320 non-talent based employees—in before Christmas, 84% was for London and the south-east. other words, administration employees—earning more We need to fix that. than £50,000 a year were not having tax and national Unfortunately, I do not have time to talk about green insurance deducted at source through pay-as-you-earn. policies, so the hon. Member for Brent North will not The review that is being conducted across Government hear my thoughts on his speech. I will at least leave the to ensure that that is not happening explicitly excludes three areas that I have discussed with Ministers. the BBC. I ask Ministers to reconsider that. I will repeat the statistic: 320 non-talent based BBC employees earning more than £50,000 a year do not have tax or national 6.39 pm insurance deducted at source through PAYE. That is Mr David Hanson (Delyn) (Lab): It is a pleasure to not acceptable. speak on the first day of the Budget debate. I feel a I will talk briefly about pension tax relief. I know that slight sense of déjà vu, because although the debate has this is a complex area, but I am concerned that the been going for about six hours since the Chancellor Government are not making the progress on private began his statement, I feel that I have known for a little sector pensions that is needed. In broad terms, the longer than that about Sunday trading, the regional pay 891 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 892 Situation Situation [Mr David Hanson] Only two weeks ago, I opened a brand-new caravan park extension in my constituency, providing 12 new cap, the 50p tax rate, stamp duty and other matters in caravans manufactured by Willerby, near the constituency the Budget. Perhaps it is because I am from the north of my hon. Friend the Member for Kingston upon Hull and we are in a different time zone up there, but those North (Diana Johnson). It is creating jobs and tourism measures seem to have been around since at least Sunday, spending in the community. People who come to north probably Saturday or before. Hugh Dalton resigned as Wales do not just stay in the caravan: they go by car to Labour Chancellor for less, and I hope that Mr Speaker buy food and drink and go to restaurants. The caravans and you, Mr Deputy Speaker, will make a really serious will now be taxed at 20%, which will have an impact on examination of the issue in future. manufacturers. How will that help to grow the economy, The Deeside industrial park enterprise zone that the given that the impact assessment shows a 30% fall in Chancellor announced today was in fact announced by manufacturing and selling capacity? How will it help the Labour Welsh Government before Christmas. It was when we have 2.67 million people unemployed; when brought to us today as a brand-new initiative, but it is the number of people unemployed in my constituency one of a range of issues in the Budget that have been rose by 34 last month to a figure 169 higher than last around for much longer than just today. year; when youth unemployment is at its highest ever; when my constituency has its highest level of youth The devil is in the detail, and the difficulty on day one unemployment since 1992; and when 49,000 young of the Budget debate is examining that detail and people have been unemployed for more than a year? deciding which are the important matters. I know that the devil is in the detail because I shared many a The priorities are wrong when a 45p tax rate is Finance Bill debate with the Exchequer Secretary, who introduced to benefit 14,000 millionaires, but the is in his place, until I moved to a different position as a Government’s changes to working families tax credit shadow Home Office Minister at the end of last year. will affect part-time workers to the tune of £3,870 if they cannot increase their hours from 16 to 24. My The details of today’s Budget are worth focusing on. trade union, USDAW, and the Child Poverty Action We have already seen that among them is the fact that Group recently indicated that around 200,000 couples 14,000 people who earn £1 million or more will get a will lose nearly £4,000 a year, and a further 35,000, with £40,000 tax cut. Whatever the arguments for or against 80,000 children, will fall below the poverty line if they that, at a time when the Government are asking people cannot find extra work. Again, that is a wrong priority to tighten their belts, giving a £40,000 tax cut to the from a Government who are concerned more about richest people in our communities strikes me as the giving money back to millionaires than helping people wrong priority. Much has been made of stamp duty who are working hard, trying to increase their hours compensating for that, but I remind the Exchequer and facing unemployment challenges. Secretary that a £40,000 tax cut is a year-on-year measure On top of that, the Government propose to introduce whereas people do not move house every year. If they regional pay in areas such as mine in north Wales, do, perhaps they deserve to pay the higher level of thereby affecting the north-west and north Wales economy. stamp duty, but mostly it is a one-off payment. It has already been estimated that £1.25 billion will be At the same time, families earning £20,000 stand to lost to the Welsh economy if regional pay is introduced. lose £253 this year, along with the rise in VAT that the That strikes me as an invitation to people to do the Opposition voted against, which will cost them about same job for poorer pay. It will drive down those poorer £450 a year. Whatever pleasures the Liberals have brought regions, which, by chance elect Labour Members of to the debate, they have said the rise in the income tax Parliament and have lower pay. The changes will have a threshold means that there will be a tax cut. However, dramatic impact on Northern Ireland, Wales, Scotland there will not be a tax cut overall, because there will still and the north. be rises in indirect taxation. There is an alternative. We believe that there should The devil is also in the details of a £3 billion tax raid be investment in tax breaks for small firms and a VAT on 4.41 million pensioners, who will lose about £83 in cut, which would have an impact on fuel and goods and 2013-14 through the changes to the higher allowances. I services. There should be a guarantee for young people am sure that will come back and bite the Government in who are out of work for more than a year. Committee and beyond. Also, 65-year-olds will lose I want to end on a positive note because I like to be £314 next year, which is another devil in the details. positive with the Government and the Treasury. I welcome I have noticed only during the debate—the Chancellor the tax break in the Budget for the video games industry. did not mention it in his speech—a major issue for me I particularly welcome it because it mirrors exactly an and my constituents in the details of the tax on holiday amendment that we tabled to last year’s Finance Bill. It caravans. I represent a constituency in north Wales was discussed on the Floor of the House and the where holiday caravans are part of the local economy. Government voted against it. They argued that it was Unbeknown to us from the Chancellor’s speech, he has not practical then. I am pleased that they have seen announced on page A101 of the “Overview of Tax sense and followed the Labour party’s lead. I now hope Legislation and Rates” that VAT will be levied on static that they will look again at the National Insurance holiday caravans from 1 October. According to the Contributions Act 2011. The Exchequer Secretary and Treasury’s own figures, that will have an impact on I sat through the proceedings, and the Opposition argued some 50,000 individuals a year and, crucially, reduce that the measure would fail. The 97% failure of take-up demand by about 30% if the VAT change is fully passed vindicates what we said at the time. I hope that he will on. The document states: consider changing the regime for the future. “This change is likely to adversely impact on all businesses that As a Member of Parliament representing the north, I manufacture, buy or sell static caravans, from the very smallest to will oppose the Budget because it is unfair, helps the rich the very largest.” and does nothing for working families in this country. 893 Budget Resolutions and Economic 21 MARCH 2012 Budget Resolutions and Economic 894 Situation Situation 6.47 pm can borrow at a lower rate of interest—it will sometimes be 1% lower. That will be rolled out over the next few Andrew Selous (South West Bedfordshire) (Con): The months and it is extremely welcome for businesses in all Budget continues policies to deal with massive issues of constituencies. intergenerational fairness so that we do not leave this generation’s collective credit card bill to our children The announcements on the single-tier pension are and grandchildren. The OBR’s prediction of 1 million excellent news for pensioners. Moving to a single-tier extra jobs in the next five years is one of the aspects of £140 a week pension is fantastic news for them. We the Budget about which I am most pleased. We must should remember that very many of the poorest pensioners also remember what the Prime Minister said in the fail to receive the extra income to which they are entitled Chamber today: fewer people are on out-of-work benefits in pension credit because of the complicated means-testing now than at the time of the general election. system introduced by the previous Government. Single-tier is fairer and more just, it will deal with pensioner The Budget has put a significant tax cut for 24 million poverty much more effectively, and it is hugely to be lower and middle-income earners at centre stage. Many welcomed. are women and many work part time. That is a significant I like the Government’s vision for addressing our move by the Government and shows that our values are infrastructure needs on a massive scale. This Government to help those at the lowest end of the income scale. It is are committed to building the new roads that this a huge move in the right direction. country needs, as I have seen in my constituency, Opposition Members do not seem to realise that the where an innovative public-private partnership deal 50p tax rate was doing real damage to our economy. will get a new bypass built. I waited in vain for the Like it or not, there are some very rich entrepreneurs previous Government to build that, but it will be around the world who can choose the economy in built under this Government. It is not only roads: we which they set up their businesses. Given that that rate have a vision comparable with that of the Victorians for of tax was higher than it was in every other country in railways, and we are doing something about our water the G20, it is surely right to try to attract those people infrastructure and our energy infrastructure, which is back to the United Kingdom to create the jobs to get incredibly important if we do not want the lights to go our constituents out of poverty. Cutting that rate was out in a few years. therefore the right thing to do. Of course, the Chancellor What we are doing to improve the accommodation also told the House that other increases on rich people for our servicemen and women—increasing the families mean that they will end up paying five times more tax welfare grant and doubling council tax relief—is vital than they would have done if we kept the 50p tax rate. I given the considerable burdens that they continue to hope that Ken Livingstone will start paying the income bear on our behalf. tax that he should pay now, instead of doing it only if I am proud to be a member of a governing party that he becomes Mayor of London. aims to double our exports in the next decade. It is The Budget is pro-business, as it should be. It introduces shameful that this country has in the past exported the above-the-line R and D tax credit that all the more to Ireland than to Brazil, Russia, India and business groups have been calling for, and a reduction in China combined. At a time when Germany is corporation tax this year, heading down to the 22% rate increasing its exports, we can, must and will—under to make the UK an extremely competitive place to do this Government—do better. business. It is right that we will tell taxpayers what their tax is I was particularly pleased to see the pro-gas strategy, going on. All our constituents will become much more which will help us to create cleaner energy in future, engaged with tax issues when they see how much they which is vital given that we neglected to build the are paying in total and where it goes. I welcome that necessary infrastructure that we need in this country. further move for transparency by this Government. There are lots of other practical measures in the The Chancellor summed up the Budget very well Budget, including the Government’s wish to introduce when he concluded his speech and said that we borrowed duty stamps for alcohol. That is important, because our way into trouble, and we are going to earn our way there is a battle with the smugglers and a massive loss of out of it. income to the Exchequer, because the tax that should be paid is not paid on a lot of alcohol. It is absolutely 6.54 pm correct that the Government are moving to capture that Geraint Davies (Swansea West) (Lab/Co-op): source of income for the Exchequer. Unemployment is at a 17-year high, more people than I welcome the extra focus on enterprise zones around ever are being forced into part-time work, there are cuts the country. It is absolutely right. It simply cannot be in tax credits to the low-paid, 170,000 children will be acceptable that an area such as the west midlands forced into poverty in the coming year, growth is down, experienced jobs shrinkage during the boom years. the deficit is up, 700,000 public sector workers are being sacked, services are being slashed and the Office for We quite properly help young people to go to university Budget Responsibility says that the Budget measures in this country through the loans system, which we will have no impact on growth forecasts. What better introduced, and is it not incredibly welcome that we will time to reduce the 50p tax rate to 45p? There are 4,000 now help young people to set up their own businesses people in Wales who pay the 50p tax rate compared through the enterprise loan scheme introduced in the with 94,000 in London. Again, then, we have a Budget Budget? where the rich get richer and the poor get poorer. There I very much welcome the national loan guarantee are hidden measures, too, such as the £3 billion being scheme. The £20 billion-worth of guarantees that the taken from pensioners in their allowances and family Government will give to businesses will mean that they tax credits going down for the poorest. 895 Budget Resolutions and Economic 21 MARCH 2012 896 Situation [Geraint Davies] Similarly, reducing VAT on home improvements would stimulate private sector building, which is important Of course, we need growth to clear the deficit. Labour because at the moment it is on its knees; and of course had a good record on growth—1997 to 2008 saw record we need to invest in a range of infrastructure projects to post-war growth levels. Then we had the financial tsunami, support the economy for the future. I have already and obviously the current Government inherited a deficit, mentioned rail but investing in our ports, again in but two thirds of it was due to the bankers and a third Swansea, is also important. due to the Labour Government spending and investing I, too, support doing more to get what we can out of above its earnings. That was the right thing to do to emerging markets and hooking up small businesses in sustain growth and not fall into a depression. The this country to those markets. In Britain we have one of Conservatives arrived and immediately focused not on the biggest digital economies in the world—£120 billion— growth but on cuts and announced 500,000 job cuts in and we have an opportunity for growth in that economy. the public sector—and Bob’s your uncle, people stopped I support some of the focus on entrepreneurial support, spending money, consumption fell, growth flatlined and in terms of loans and skills. The problem is that people the deficit rose by £150 billion. That is complete are now coming out of university with excessive debt. incompetence. The Tory plan is to shrink the public sector, to 7pm squeeze the poorest and to move too far, too fast. The debate stood adjourned (Standing Order No. 9(3)). Owing to these changes, the OBR has made a one-off change in its predictions of £50 billion—3.5% to 4%, as Ordered, That the debate be resumed tomorrow. mentioned earlier, of the whole economy. The focus is 20% on tax and 80% on cuts. Perhaps that is the wrong Business without Debate balance for managing the budget. The focus is on getting rid of the budget deficit in four years instead of halving it in four years. Perhaps that is the wrong focus. EUROPEAN UNION DOCUMENTS Furthermore, the cuts themselves are not targeted fairly. Motion made, and Question put forthwith (Standing Most recently, we have heard about regional pay. In Order No. 119(11)), Swansea, 40% of workers are in the public sector, and 60% of them are women. Already many people are CIVIL AVIATION:AIRPORTS facing job cuts—part of the 700,000 job cuts. They That this House takes note of European Union Documents already face zero pay increases for two years, followed No. 18007/11, relating to a Commission Communication on by 1% increases for two years, and with inflation at airport policy in the European Union: addressing capacity and about 5%, that is nearly a 20% real-terms cut in their quality to promote growth, connectivity and sustainable mobility, pay. The last thing they want to hear is that there will be No. 18008/11 and Addenda 1 to 3, relating to a Draft Council Regulation on groundhandling services at Union airports and further cuts to regional pay. We need to stimulate private repealing Council Directive 96/67/EC, No. 18009/11 and Addenda sector investment through, for example, investment in 1 to 4, relating to a Draft Regulation on common rules for the electrification of the railway to Swansea. Wales’s share allocation of slots at European Union airports (recast), and of High Speed 2 would be £1.9 billion, but instead No. 18010/11 and Addenda 1 and 2, relating to a Draft Regulation Wales can look forward to a Trojan horse of cuts to the on the establishment of rules and procedures with regard to the Welsh Assembly Government, as this idea of regional introduction of noise-related operating restrictions at Union airports pay is geared towards health, education and the like. within a balanced approach and repealing Directive 2002/30/EC; supports the Government’s aim of ensuring any resulting measures There is a real danger that a general practitioner in are appropriate, encourage competition and help to deliver a level Swansea will say, “Hold on, I want to live in Bristol.” playing field across the EU; and further supports the Government’s There is a concern about the migration of quality view that any such measures should be evidence-based, proportionate workers. and should reduce, or at least minimise, the regulatory, administrative My father—and, indeed, the father of the hon. Member and cost burden for industry.—(Bill Wiggin.) for Worcester (Mr Walker)—was involved in the Driver Question agreed to. and Vehicle Licensing Agency and the Mint moving to Wales. These are important resource that help to support the Welsh economy, but now there is a move to reduce SITTINGS OF THE HOUSE that by cutting people’s wages. Ordered, What should we do? My view is that a temporary, That at the sitting on Tuesday 27 March, the Speaker shall not targeted fiscal stimulus in the autumn, on VAT, national adjourn the House until he has notified the Royal Assent to Acts insurance and investment in infrastructure—such a stimulus agreed upon by both Houses.—(Bill Wiggin.) has been commended by the Institute for Fiscal Studies— would be a sensible idea. In the case of Swansea, if VAT DELEGATED LEGISLATION was reduced for one year to 17.5%, it would mean Ordered, £450 per household. There are about 103,000 households in Swansea, so that makes £46 million in the local That the Motion in the name of Secretary Vince Cable relating to Financial Assistance to Industry shall be treated as if it related economy. That equates to about 3,000 jobs at £15,000 a to an instrument subject to the provisions of Standing Order job. That would have a big impact on confidence, on No. 118 (Delegated Legislation Committees) in respect of which getting consumer demand going and on getting growth notice has been given that the instrument be approved.—(Bill on to a better trajectory. Wiggin.) 897 21 MARCH 2012 Pharmaceutical Industry 898

Pharmaceutical Industry today. Those measures included the patent box—a policy initially conceived by the last Government—low, or Motion made, and Question proposed, That this House lower, corporation tax rates, and tax credits for R and do now adjourn.—(Bill Wiggin.) D, among other things. However, my concern is that 7.1 pm that is simply too little, too late. In the light of the job losses at Pfizer, AstraZeneca, GSK and now Sanofi, it Catherine McKinnell (Newcastle upon Tyne North) seems that the Government are trying to close the stable (Lab): Last week my constituents received some devastating door after the horse has bolted. news. The staff at the Sanofi pharmaceutical manufacturing centre in Fawdon were told that it is proposing to close Surely the withdrawal of manufacturing capability in 2015, with the loss of up to 450 jobs. The 90-day cannot be wise when the national health service is consultation period with staff and their union, Unite, facing shortages of prescription medicines, as has been has now started. Unite wants to work with the company admitted in the House by the Department of Health. I and other stakeholders to mitigate the losses, and is have support for that view from the highest level. Last calling on the company to explore all avenues to try to month, the Secretary of State for Business, Innovation save those valuable jobs. News of the proposed closure and Skills kindly shared his thoughts on industry policy was a great blow, because in the north-east we already with the Prime Minister and the Deputy Prime Minister, have the highest unemployment rate of any region in and we have all had the chance to study his letter. In it, the United Kingdom, at 10.8%. In the last year, the he bemoaned the lack of a “clear and confident message” number of jobseeker’s allowance claimants in my about how Britain will earn its living in future, and constituency has gone up by 15.6%, and the number of pressed the need for “strategic pro-growth thinking”. people claiming for more than 12 months has nearly The Business Secretary rightly identified the fact that doubled. the manufacturing industry merited close attention and backing. The UK is a world leader in the pharmaceutical industry. The sector is a net exporter, generating a One of the weaknesses in the Government’s approach positive trade surplus, and a key employer, with an that the Business Secretary identified was a need for estimated 67,000 jobs in the UK depending on it. The more strategic and long-term thinking about supply pharmaceutical industry is also the leading sector in chains and public procurement. My constituents would terms of investment in research and development, at certainly agree with him. I hope that he has begun to about £4 billion each year. I pay tribute to the work of engage with this matter and to take steps to strengthen the previous Government in supporting the sector, and the supply chain, thereby shoring up the UK manufacturing I am pleased to see the shadow Minister for competitiveness industry. As he suggested, the Government’s industry and enterprise, my hon. Friend the Member for Hartlepool policy is not joined up. Much closer working between (Mr Wright), in his place for this debate. the Department for Business, Innovation and Skills and The Sanofi factory has been part of the north-east’s the Department of Health could help companies such manufacturing base for many years. Andrews Liver as Sanofi, but there is no evidence that that is happening. Salts, invented by a Newcastle entrepreneur in 1896, What meetings have BIS Ministers had with Health was made there, along with other household names, Ministers and officials to ensure better coherence in such as Milk of Magnesia and Panadol. In the decade respect of the drugs market for the benefit of British-based after Sanofi-Aventis acquired the old Sterling-Winthrop companies such as Sanofi? If the Secretary of State is plant in 1994, it spent £100 million on modernising its looking for a case study to develop his Department’s facilities, investing in a new packaging plant for solid-dose thinking, together with that of the Department of Health, oral medications—or pills, to you and me. he could do worse than to look at the role of the Fawdon manufacturing centre. In doing so, he could Members will recall that, just over a year ago, Pfizer take the same swift action to aid its recovery as was announced the closure of its research and development taken for Pfizer. facility at Sandwich in east Kent. That followed closures and jobs cuts among other leading pharmaceutical A number of issues come to mind. There is increasing companies—for example, research and development job global demand for pharmaceuticals, so the Fawdon cuts at AstraZeneca’s Alderley Park facility in Macclesfield. centre’s capacity is not being withdrawn permanently The trend reflects long-term changes in the structure of from the world’s drug manufacturing base, as it will the pharmaceutical industry worldwide. On 7 March almost certainly be reproduced somewhere else. However, last year, the hon. Member for South Thanet (Laura the skills built up over generations to serve the industry Sandys) raised the matter in an Adjournment debate. in the north-east will go to waste, and the machinery The Minister for Universities and Science pointed out that has been so expensively installed at Fawdon will be to the House that major structural changes were under scrapped, or removed and taken abroad, which I find way in the life sciences industry. worrying. Within days of the announcement that Pfizer would Where will the new production take place? What are be closing, the Government took swift action to establish the advantages that another location offers? Is it simply a taskforce to lead it to recovery. A package of support that it is much easier and cheaper for a French company was secured for the site and around 650 jobs were to make people redundant in the UK than elsewhere in eventually saved, enabling the facility to continue its Europe, or will the tablets and capsules that currently excellent research and development work, although more come off the production lines at Fawdon be made in than 1,000 jobs were sadly lost. In a speech on life Brazil or India in future? How content are we to have sciences in December last year, the Prime Minister set no indigenous pharmaceutical manufacturing capability out how the Government were responding to the changing left in the UK, given that our ageing population is demands placed on the sector—what he said was also increasingly dependent on medication in one form or confirmed by the Chancellor in his Budget statement another? 899 Pharmaceutical Industry21 MARCH 2012 Pharmaceutical Industry 900

Chi Onwurah (Newcastle upon Tyne Central) (Lab): I research and development and manufacturing capability. grew up in Newcastle just 100 yards from the Fawdon There is huge global potential here: as the world’s plant, and I congratulate my hon. Friend on bringing prosperity increases, with a growing and ageing population, this important subject to the House tonight. Does she Sanofi’s products made in Newcastle will be in demand. agree that a city such as Newcastle, whose university The biggest questions of all are, of course, those raised has real strengths in health care and medicine, needs by the Secretary of State for Business, Innovation and more active Government intervention to ensure that Skills. Where is the clear and confident message about that research and development is translated into the way Britain will earn its living? When will the manufacturing capability in the region? Government start to act decisively on their call for an industrial strategy? Catherine McKinnell: I thank my hon. Friend for that In the meantime, there are many practical issues for question. This is a subject that I feel strongly about. We my constituents, which I urge the Minister to address by have heard some positive noises from the Chancellor way of a Government-backed taskforce. Pfizer staff today in his Budget, but I am already hearing concerns received a package of support, including counselling, being expressed in the science community in Newcastle careers advice, CV writing and retraining. What support over how those proposals will be translated into action. will Sanofi be able to offer its loyal employees in acquiring People are concerned as to whether the full weight of new skills? What are the intentions for the site? The support will be provided, rather than just small tax Discovery park in Sandwich is being heavily promoted breaks. Serious efforts need to be made to encourage and marketed to attract investment. In the longer term, research and development in science, particularly in the how can we get into the north-east the sort of jobs and light of what we can see, if we look closely, is a real-terms small and medium-sized enterprises that the Minister cut in the science budget. The science community is still talked about last year? concerned that it does not have the full backing of the Government. Laura Sandys (South Thanet) (Con): I welcome this debate, and I feel for the hon. Lady’s community, as Jim Shannon (Strangford) (DUP): I, too, congratulate mine in Sandwich was impacted by the Pfizer closure. I the hon. Lady on bringing this important matter to the would also like to give some constancy and hope to the House. At present, 10% of the people in Northern community in Newcastle. What came out of the difficulties Ireland visit their chemist daily, which is a large proportion and major challenges we faced was a reinvigorated of the population. That illustrates the importance of environment—in many ways a community similar to our pharmacies. Pricing premiums, generic rivals and what my hon. Friend the Member for Mid Norfolk falling returns are the key issues for the pharmaceutical (George Freeman) described, given his vision of how a industry. Does she think that it is time for the NHS to pharmaceutical community can work in the new model. consider buying British first, and buying from elsewhere After one year, we now have 900 committed jobs on the second? site, and more spin-out companies on the verge of creating themselves, which is exciting. Catherine McKinnell: Absolutely, and that is one of the key issues on which I hope the Minister will respond. It should be a key consideration in the way the Government Catherine McKinnell: I thank the hon. Lady for her take forward their active industrial strategy. words of comfort, but I do not think that what she said will be entirely comforting to those in Newcastle, given George Freeman (Mid Norfolk) (Con): I am grateful that we face a very different situation. We are talking to the hon. Lady for giving way, as I appreciate that about a production plant, not a research and development time is precious. She has referred to the systemic and plant, while the north-east faces higher levels of structural changes in the industry. Does she accept, unemployment than any other part of the country. That though, that at the heart of that is a profound problem adds to the deep anxiety in my region, but I thank her of the productivity of the traditional model of for her words. pharmaceutical drug discovery and development? That In his oral evidence to the Science and Technology means that, although this country can have a bright Committee after the Pfizer closure, the Minister said future in the new models of discovery in translational that he recognised that there was a London-Oxford- and experimental medicine, bringing industry, hospitals Cambridge cluster for research and hence for the SMEs and universities back together—her city of Newcastle that are the future of pharmaceuticals. In business has a lot to offer there—the industry is struggling with questions last week, the Business Secretary admitted the traditional models of discovery and development, that there was a financing gap, with venture capitalists which might well mean the closure of yesterday’s plant unwilling to provide much needed finance to SMEs and the recycling of talent and expertise within the outside that cluster. My colleague who asked the question location into new centres of drug discovery. referred to it as the “golden triangle”. The Business Secretary said that the business growth fund—a private Catherine McKinnell: I appreciate the hon. Gentleman’s sector initiative—was already beginning to fill that gap. point, but I cannot refer to Sanofi as yesterday’s plans, The Government surely need to oversee that, however, when it is open currently and there are 90 days of to ensure that my region gets the investment it so badly consultation in which to turn the situation around. needs. Newcastle is a long way from that triangle, and I That is an important point for my debate today. I hope that we will not be abandoned. nevertheless thank him for his intervention. We have an outstanding tradition of manufacturing Retaining our world-class status in pharmaceuticals and production in the north-east, and a population of means ensuring that the Government work actively and adults who are ready, able and willing to work. Newcastle intelligently with businesses such as Sanofi to retain is a great science city with world-class universities that 901 Pharmaceutical Industry21 MARCH 2012 Pharmaceutical Industry 902 provide excellent research. I want the Government to consultation is under way; we must let that take place make use of the north-east’s potential, and to start by before determining the future course. We will work keeping the Fawdon manufacturing centre open. I would closely with the company to secure its support at this like the Government to assist in the recovery of the very difficult time for the employees affected. Sanofi Fawdon manufacturing centre, just as it did in The hon. Lady reflected on the closure of AstraZeneca’s the case of Pfizer. That would have been an excellent Charnwood site in 2010 and the scaling back of Pfizer’s project for our regional development agency, One North Sandwich site last year, which involved some 1,200 and East. Previously, if a major employer had announced 2,400 direct jobs respectively. Decisions on how best to job losses, a taskforce would have emerged from One respond have to be based to some extent on the economic North East to provide help and support for the business impact, time scales and most suitable response for the and its employees. local work force and the local area. The decisions were Our local community has already established a very hugely disappointing to Government, but they were determined taskforce comprised of Unite, local councillors, based on the companies’ global restructuring strategies, local MPs and other stakeholders. Our aims are to keep and were not a judgment on the UK as a location for the skills of Sanofi staff, make a future for the centre, life science investment or as a location for research. and secure the investment needed to keep it open. I urge Indeed, both companies have gone on to make substantial the Minister to give his support to our taskforce without investments in the UK. delay to help to save Sanofi and the 500 or so jobs at The hon. Lady highlighted the positive impact of the stake in Fawdon. taskforces we put in place following these decisions. She referred to the taskforce established in Newcastle, and I 7.15 pm applaud that local work; it was absolutely the right The Parliamentary Under-Secretary of State for Business, thing to do in the circumstances. The taskforces have Innovation and Skills (Norman Lamb): I congratulate been exemplary and have largely mitigated the impacts. the hon. Member for Newcastle upon Tyne North Let us first consider Pfizer’s Sandwich site. Some (Catherine McKinnell) on securing this debate on an 800 jobs were retained or created on the site. The incredibly important subject. I fully appreciate the concerns Discovery park has been designated an enterprise zone, she raises. offering a package of business rate discounts and planning I shall begin by addressing the specific issue that flexibilities, thus supporting its attractiveness as an prompted this evening’s debate. We in the Government investment location. That has encouraged 20 new life are extremely disappointed by the news of the planned science businesses to locate at Discovery park. Some closure of Sanofi’s Fawdon site. I should like to express £35 million was secured through the Government’s regional my sympathy to the work force and their families, who growth fund to provide grant and loan finance to business are, obviously, going through a very anxious time. She through the Expansion East Kent programme, with the did absolutely the right thing in raising their concerns aim of creating, or safeguarding, 5,000 jobs. I acknowledge with us. the points made in this regard by my hon. Friend the I recognise the challenges in regions such as the Member for South Thanet (Laura Sandys). north-east, where unemployment is high, but in a sense AstraZeneca employees were similarly supported in that is exactly why the Government are seeking to securing new roles and opportunities, with about 90% of rebalance the economy and rebuild manufacturing and leavers securing their future. My hon. Friend the Member exporting, while taking advantage of the north-east’s for Loughborough (Nicky Morgan) is also present this incredible assets—it has a skilled work force and is a evening. She was very active in working to support staff wonderful place to locate. We absolutely agree on the and in finding new uses for the site. need to do that. The hon. Member for Newcastle upon Tyne North I want to be clear that Sanofi’s decision was not in has rightly expressed the genuine concern that is felt any sense based on a judgment of the UK as a location about the potential closure. However, even if the site for life science investment. It was no reflection at all on closes, given the skills of the work force there is some the radical measures that the Government have taken to hope that there will be a brighter future than some can support the industry. I shall come on to those measures see at present. I have every confidence that Sanofi, shortly, but we understand from Sanofi that the decision Newcastle city council and the local enterprise partnership was made entirely for its own commercial reasons. The will be able to work well together. hon. Lady talked about the major restructuring that many such companies are undertaking globally. We I want to turn now to the broader concerns raised have to recognise that that is a force that is in play. this evening about the status of this key industry in the Of course, that does not in any way lessen the impact UK. I am, of course, alive to the challenges we face. The on Fawdon’s employees and the local community. BIS UK has seen a reduction in the number of large Local has spoken to Sanofi’s local management, as well pharmaceutical manufacturing sites, as have many other as to Newcastle city council and the North Eastern developed markets. However, I wholeheartedly disagree local enterprise partnership. We will examine how we with any claim that this is a weakening industry or that can ensure the most effective local support for those the Government are not providing enough support. The directly affected by the proposed closure, as well as UK continues to have one of the strongest and most plans to support sustainable economic growth in the productive life sciences sectors in the world, contributing affected area—plans that recognise the skills of the to patient well-being as well as supporting growth. work force. Naturally, the first priority will be to ensure In the last decade, the UK life sciences industry— that those affected by the proposed closure have access pharmaceutical, medical technology and medical to the very best support available for redeployment and, biotechnology companies—has not only continued to if necessary, retraining, but I absolutely recognise that a be strong, but has shown continued growth. It has 903 Pharmaceutical Industry21 MARCH 2012 Pharmaceutical Industry 904

[Norman Lamb] ensure that the life sciences industry is primed to operate effectively and efficiently, drawing in intellectual property grown faster than any sector of the economy apart from and investment, nurturing small and medium-sized finance and insurance. It employs more than 166,000 people, enterprises, and making it easier for products to reach many in high-tech, high-skilled jobs, and it has an the market. The approach includes: the patent box, annual turnover of more £50 billion. It is therefore a which will be effective from April 2013 and will reduce very important sector for the British economy. the corporation tax on profits from patents and similar Data clearly show we continue to be a leading destination intellectual property to 10%—that is important in attracting for research and development investment, attracting inward investment; research and development tax credits £4.6 billion of pharma R and D spend in 2010 alone. offering 200% super- deduction relief for SMEs; and a Indeed, only yesterday Eisai, one of the world’s leading £310 million investment to support the discovery, research-based pharmaceutical companies, announced development and commercialisation of research, it is expanding its British base to support the company’s £180 million of which is for a biomedical catalyst to growing European, middle eastern and African business, provide support to both academically and commercially creating new job opportunities for the UK. Gary Hendler, led research and development, to deliver innovative life Eisai EMEA president and chief executive officer, sciences products and services quicker and more effectively specifically cited into health care. Ultimately, that is what we want to see. “the country’s importance as a global hub for the pharmaceutical We are creating a true life sciences ecosystem that industry” fosters collaboration and partnerships to enable the UK as the reason for choosing the UK, noting: to compete globally in attracting investment in research “Initiatives to support the life sciences sector championed by and product development. One of the measures to The Department of Business, Innovation and Skills (BIS) have achieve that is the establishment of a number of academic added to” health science networks across the country, aligning the company’s clinical research, informatics innovation, training and “ability to cure and care for the health and wellbeing of more education, and, crucially, health care delivery. They will people across the EMEA region.” provide industry with clear points of access to the NHS That is a very recent decision to invest in the UK. to facilitate NHS-industry collaborations, in order to develop health care solutions. We are also addressing That is not to say that everything is perfect, however. the regulatory barriers, to enable innovative technologies, At a time when we are working hard to rebalance the diagnostics and therapeutics to be identified and taken UK economy, we need to ensure that we keep, and grow, up across the NHS. That will include a Medicines and our key industries. Healthcare products Regulatory Agency consultation Chi Onwurah: I thank the Minister for the points he is for an early access scheme for treatments that have not making about the strength of the UK pharmaceutical yet been licensed but where there is a high unmet industry’s research and development. The key is to clinical need. translate that research and development into manufacturing Furthermore, in the most radical move in this area of capability, so that we have jobs for technicians—ordinary any Government, we are unlocking the power of the working manufacturing jobs. What policies are there to NHS and its unique patient data to ensure that, subject ensure that small biotech companies have the help to to the necessary safeguards, data from research and translate into manufacturing in this country? clinical practice are available for the benefit of improving clinical outcomes and enhancing the UK’s position as Norman Lamb: Let me go on to talk about the steps the leading country to undertake research and development. that the Government are taking, because in large part However, we have also recognised that to provide a this will address the points the hon. Lady is making. truly attractive UK environment, we need to address The life sciences industry has seen significant changes the adoption and uptake of innovation in the NHS and in the commercial environment, and we have recognised firmly embed innovation within the NHS. So the NHS that if we are to remain competitive, the UK must up its chief executive is taking action through the implementation game. So I emphatically reject any suggestion that the of his review, “Innovation, Health and Wealth: accelerating Government are not doing enough to support life sciences adoption and diffusion in the NHS”. That will, for in the UK. I alluded a few minutes ago to the fact that example: reduce variation in the NHS; drive greater we have taken radical steps to support this important compliance with National Institute for Health and Clinical industry and its innovations, and to make the UK the Excellence guidance; facilitate work with industry to location of choice for investment. develop and publish better innovation uptake metrics; We published “The Plan for Growth” in March 2011 improve arrangements for procurement in the NHS to and followed it in December with our “Strategy for UK drive up quality and value, and to make the NHS a Life Sciences”. I understand from my hon. Friend the better place to do business; bring about a major shift in Member for Mid Norfolk (George Freeman) that Lord culture within the NHS, developing its people by hard- Mandelson specifically supported that strategy in his wiring innovation into training and education for managers Davos speech as an exemplar of this work. We worked and clinicians; and identify and mandate the adoption in collaboration with businesses, clinicians and researchers of high-impact innovations in the NHS. from across the sector to listen to what they had to say Saying and doing are, of course, entirely different about the UK environment and to deliver against their things, but rest assured this Government are committed needs. to early delivery. We have appointed two independent The result was a package of measures that has been life science champions, Chris Brinsmead and Sir John unanimously supported across the industry. We are Bell, who will work closely with my hon. Friend the delivering fiscal incentives and removing barriers to Member for Mid Norfolk to drive implementation against 905 Pharmaceutical Industry21 MARCH 2012 Pharmaceutical Industry 906 the “Strategy for UK Life Sciences”. They will report very welcome news that it is to launch a £200 million on progress direct to the Prime Minister every six months. fund to invest in biotechnology start-up companies in I conclude by reiterating that although announcements the UK and Europe. I thank the hon. Member for such as Sanofi’s are immensely disappointing—I understand Newcastle upon Tyne North for raising this really important that—the future for UK life sciences looks bright. Not subject, and I am happy to work with her. only are the Government proactively delivering for the Question put and agreed to. industry at a time when the environment across many other European countries is becoming increasingly hostile, but we have fantastic organisations such as the Wellcome 7.30 pm Trust offering additional support, not least with yesterday’s House adjourned.

193WH 21 MARCH 2012 Thamesteel 194WH

second-largest steelmaker, also announced plans to overhaul Westminster Hall its European tube steel business amid weak demand for its products. It said that the move could result in 200 job Wednesday 21 March 2012 losses, predominantly at Corby. Michael Leahy, the general secretary of Community, said that Thamesteel had informed the union’s local [PHILIP DAVIES in the Chair] representatives that the accountancy firm Mazars had been appointed as administrators after a deal with a Thamesteel Swiss group to secure the plant’s future fell apart at the last minute. Michael Leahy said at the time that it was Motion made, and Question proposed, That the sitting devastating news for everyone who worked at Thamesteel be now adjourned.—(Mr Vara.) and for the wider community in Sheerness. Importantly for me, for MPs present today and for the work force, 9.30 am Michael said: Tom Blenkinsop (Middlesbrough South and East “Sheerness steelmaking can have a future and we will be doing Cleveland) (Lab): I thank you, Mr Davies, for the all we can to save our steel in the coming weeks and months.” opportunity to begin this important and timely debate It is of primary importance that that is reiterated, and on Thamesteel and the future of UK steel production. I that the site is not talked about in the past tense. am grateful to hon. Members for attending the debate. At the time, there were reports that Thamesteel had Their presence illustrates not only the high importance been in talks with Trafigura to secure a deal for the with which hon. Members regard our country’s steel long-term future of the plant that would have resolved industry, but the sympathy that we all share for the 400 Thamesteel’s financial difficulties. However, Trafigura steelworkers at Thamesteel who are undergoing the has so far declined to comment on speculation. We are most difficult circumstances. Unfortunately, those all aware that the backdrop is one of a European steel circumstances, which all steelworkers, if not all workers, industry struggling to cope with protracted weak demand are experiencing now, have not been seen since the in certain corners of the steel market, particularly in the 1980s. long product construction sector. We are also all aware I and many parliamentary colleagues wanted to secure that the European sovereign debt crisis has made the this debate to highlight the dire way in which steelworkers situation worse by denting consumer confidence, as at Thamesteel have been treated. Any steel site that is fears grow that Europe is set for lacklustre economic lost is a loss not just to the immediate area, but to growth prospects this year. British steel production and UK manufacturing. Many steelworkers have been here before; it is a David Simpson (Upper Bann) (DUP): I congratulate familiar tale for those in the steel industry. Thamesteel, the hon. Gentleman on obtaining the debate. Although which is based in Sheerness, employed about 400 workers some 40% of the steel from the United Kingdom is and had a production capacity of 840,000 metric tonnes exported to the continent, competitiveness has always of billet and 600,000 tonnes of bar rod. The site itself been an issue. Last year, the Government gave something began operations in January 1972, and production started like £250 million to the steel industry to help towards at the UK’s first mini integrated works on the site of the rising energy costs. Does he agree that for all industry—not historic Sheerness naval hospital. The site uses recycled just the steel industry—to continue, we need to see some steel to produce steel for the construction industry. more benefit coming from the Budget today, to help the Surviving the turmoil of MacGregor in the ’80s and a future of business in the United Kingdom? number of trade union de-recognition plots by the management in the ’90s, this community and its men Tom Blenkinsop: I agree with the hon. Gentleman, and women have seen it all. who makes a valid point. The steel industry and other In July 2002, when the site was owned by Allied Steel energy-intensive industries are worried about their futures. and Wire, ASW went into receivership and the employees The Government, I think, are willing to listen. We hope lost their accrued pensions, but Community trade union that the Budget will take more steps to help and assist fought a five-and-a-half-year campaign to secure a industry. We need to consider other measures, but I will £12 billion financial assistance scheme, which secured come on to them later in my speech. the pensions of 90% of the affected workers, via a Across Europe, steelmakers have been restructuring European Court of Justice ruling. In my former life, I their operations in light of weaker steel demand. Aside was a Community trade union officer and lay official from Tata Steel and Thamesteel, ArcelorMittal—Europe’s branch secretary and knew some of the people who largest steelmaker—began mothballing furnaces in recent were involved, and they stood by the Teesside Cast months as part of an optimisation plan aimed at shifting Products site and its steelworkers in their hour of need. more of its production to low-cost facilities. Recently, it Securing this debate for the Sheerness steelworkers is also announced plans to shut indefinitely an electric arc the very least that I can do to ensure that their case is furnace in Madrid due to weak demand. The move will heard at the highest possible level. UK steel producer affect around 270 jobs. It is also considering cutting Thamesteel, which was, until recently, owned by Saudi-based 630 jobs at its Czech plant, to boost competitiveness. Al-Tuwairqi Group, went into administration after failing Everyone here, whether MPs or people in the Gallery, to secure an investor to rescue it from financial difficulties. is seriously concerned about what the UK Government That information was made public not by the company, are doing about UK manufacturing generally, and UK but by Community trade union. Thamesteel became the metal process industries in particular. What are the second steelmaker that day to make an announcement Government doing in Corby, Scunthorpe and Rio Tinto that could result in job losses. Tata Steel Ltd, Europe’s Alcan, to name but a few? There has been a lot of noise 195WH Thamesteel21 MARCH 2012 Thamesteel 196WH

[Tom Blenkinsop] On 1 February, Michael Leahy wrote to the Secretary of State for Business, Innovation and Skills asking him from the Government about the manufacturing sector, to meet Community union Thamesteel workers. On but little actual help. With 300 companies involved in 7 February 2012, the first meeting of the Kent county the local manufacturing supply chain in north Kent, council taskforce was attended by Ryan Slaughter, from this issue is crucial. The sequence of events that led to the Community union; Ken Pugh, a county councillor; the need for this debate on Thamesteel and the wider Kevin Lynes, the chair of the meeting and another UK steel industry illustrate that clearly. I have taken county councillor; John Burke, who is the constituency some notes from my former Community union officer manager for the hon. Member for Sittingbourne and colleague, Ryan Slaughter, who has been dealing with Sheppey (Gordon Henderson); Jobcentre Plus; MidKent the Thamesteel situation alongside local reps at Sheerness. college; a representative of the Department for Business, In late 2002, Saudi Arabian based Al-Tuwairqi Group Innovation and Skills; Peel Ports; and Citizens Advice. bought the Sheerness steel mill and formed Thamesteel The aim of the taskforce was to provide immediate Ltd. Al-Tuwairqi aimed to invest in the works and support and to plan a long-term economic strategy for produce grade steel bar and billet for the middle east Sheerness. market. Much of the steel bar and billet produced by Also on 7 February 2012, Michael Leahy, the general Thamesteel workers was used in large-scale construction secretary of the Community union, Roy Rickhuss and projects across the middle east. two Thamesteel workers, Pat Wiggins and Tom Butler, In April 2009, Thamesteel and Van Merksteijn acquired met the shadow Minister for Business, Innovation and an equal controlling interest in Kierbeck Ltd—a reinforcing Skills, my hon. Friend the Member for Hartlepool steel fabrication business—of 51%, which was held (Mr Wright). On 13 February 2012, the Secretary of through the holding company TVM Ltd. In May 2010, State for Business, Innovation and Skills wrote to Michael Mazars administrators were appointed as joint liquidators Leahy and declined to meet Thamesteel workers who of Kierbeck Ltd and the business and assets were sold are Community union members. to Kierbeck Thames Ltd, a sister company to Thamesteel, On 10 February 2012, the first Thamesteel RP1 forms on 2 June 2010. were received by the local redundancy payments office In the summer of 2010, a working capital agreement and a further nine employees made redundant. On was reached with Stemcor UK Ltd, taking out a charge 14 and 15 February 2012, a second tranche of RP1 on various companies within the Thamesteel Holdings forms were received by the redundancy payments office. Group. In September 2011, Thamesteel stock holding was reduced to clear the balance with Stemcor until the Angela Smith (Penistone and Stocksbridge) (Lab): full balance was cleared. Production at the rolling mill Does my hon. Friend agree that the contrast between was also stopped temporarily, owing to a lack of working the behaviour of the current Secretary of State for capital. Business, Innovation and Skills and that of the previous In November 2011, the melt shop stopped production. Secretary of State for Business, Innovation and Skills, On 15 December, senior management sent an e-mail to Lord Mandelson, is not to be believed, given that Lord management staff indicating that payment of salaries Mandelson worked very hard when the steelworks in would be delayed—that was on the day when staff were my constituency was under pressure and about to go supposed to be paid. On 17 December, HAT Holdings under, and he worked really hard to ensure that it had a BSC—an Al-Tuwairqi Group company—agreed to invest future? £170,000 in Thamesteel after installing a debenture to secure future investment. Tom Blenkinsop: I support my hon. Friend’s comments On 23 December 2011, employees received their last and will return to them, as she makes an important pay to date. On 24 January 2012, HSBC placed a freeze point. It is all about how we define industrial activism on all company bank accounts. On 25 January, Rod and whether we have an industrially active policy, where Weston and Guy Hollander from Mazars were appointed Ministers are willing to roll up their sleeves and get their as administrators. Union officials were the first production hands dirty. employees to be informed that the company was in On 17 February 2012, the Community union Sheerness administration. works branch met and voted to lobby Parliament. On At 11 am on 26 January, Rod Weston addressed all 21 February 2012, the all-party group on the steel and employees at a mass general meeting, announcing metal-related industry, which I chair, met and heard 394 potential redundancies. Mazars told employees that, representations from two Thamesteel workers, Pat Wiggins if they did not receive a call by the end of the day, they and Tom Butler. On 22 February 2012, the second were redundant. Community union officials addressed meeting of the Kent county council taskforce took employees and began the Save Our Steel campaign. On place. On 24 February 2012, the redundancy payments 28 and 29 January, 341 redundant employees received office received a third tranche of RP1 forms. From notices and RPl forms. 27 February 2012, 240 RP1 submissions were paid to On 30 January, my hon. Friend the Member for Thamesteel workers during in a week. Harrow West (Mr Thomas) submitted early-day motion On 8 March 2012, Community union Thamesteel 2663 on the Thamesteel redundancies. On 31 January, workers held a lobby of Parliament. On 13 March 2012, Community union jointly organised with Mazars a Michael Leahy, the general secretary of the Community workers’ support day. The majority of workers received union, wrote a further letter to the Secretary of State help filling in RPl forms and advice from local colleges, for Business, Innovation and Skills, asking for assistance Citizens Advice, Jobcentre Plus, Communitas, the and a meeting with workers. On 16 March 2012, the Community trade union information advice and guidance deadline that Mazars had proposed as a cut-off date for training arm and Her Majesty’s Revenue and Customs. bidders was passed. On 21 March 2012—today—a 197WH Thamesteel21 MARCH 2012 Thamesteel 198WH

Westminster Hall debate to raise the concerns of the that with a well-paid job, my now wife and I could plan our family Thamesteel workers is being held. On 28 March 2012, together. Jen, my wife, has two children from her previous marriage creditors of Thamesteel will meet at Priestfield stadium and we also wanted our own. Jen was able to give up work and in Gillingham. over the next few years we had two beautiful children, coincidentally both born on 25th June, in the same delivery room at Medway Throughout this time, it is safe to say that the presence hospital, but three years apart. As people always do, we lived to of the Government has been fairly non-existent and our means, and managed to stay credit-free. We were able to meet those of us who are here today, and the workforce, all our outgoings and not build up any arrears. We were never well would like to know why. Why has the Department for off, but we were not broke. The occasional night out was still Business, Innovation and Skills ignored requests to possible, as was the odd short holiday. We live in a modest three-bed semi in Queenborough, and feel we are part of the local meet the democratically elected representatives of the community. My stepdaughter, who lives with us, was tutored at workplace that is affected? Why have the Government the Isle of Sheppey academy, our daughter Ruby attends so far waited for an invisible hand, instead of lending Queenborough First School, as will Peter when he is old enough. their helping hand? Why has the Secretary of State My wife and I were married locally in January 2009 at the local ignored a trade union that he knows can deliver results Methodist church, where my wife’s uncle is a Methodist minister. in saving steel works, as was seen at Redcar’s Teesside He… travelled to conduct our ceremony. In the last six months, Cast Products? it’s been clear to all that something was going very wrong at Thamesteel. Bar mill production ceased in August last year, and If the Secretary of State or the Minister agreed to melt shop production was sporadic to say the least. The message meet the union, they could have heard directly from from the senior management was always positive, right up until men such as Ian Crosby, Paul Davies, Michael John 23rd January 2012, when it first became apparent that we might Terry, Aby Abraham, Gary Lewis and Barry Coulthard, not get our pay in two days’ time. With the best will in the world, who are all workers at Thamesteel who have written nobody could ever plan for that. In the build-up to Christmas, all down accounts of their plight. Unfortunately, I do not we got was positive vibes, and spent up for Christmas as you always do. Everyone wants the best for their kids, so let them have have enough time to read out all their accounts, but if it, our ‘jobs are safe’. For the very first time in my life, I found you will indulge me, Mr Davies, I will read out two of myself on the phone to claim jobseeker’s allowance on 26th them. January 2012. I spent three whole days on the phone explaining to Ian Crosby writes: all my creditors—mortgage, energy, etc.—what was happening. The world was falling in and I couldn’t think straight. I tried to be “I am a 29-year-old man that has worked for Thamesteel for the strong for my family, and did the best I could, but the pressure last six years. I applied for the job when my then fiancée fell was—and still is—immense. It’s made a hell of a difference to my pregnant with our first child. The salary at Thamesteel was quite life. I’ve applied for loads of jobs in my field of knowledge, in all a jump from the job I had previously been in, as well-paid jobs to parts of Kent. So far, I’ve had two replies, both of which have enable supporting a family are few and far between on the island. been negative. My JSA is now being paid, £210 a fortnight to We are now married and have three sons, aged five, three and five cover all my bills. I’ve applied for help with the mortgage, but that months old. My wife is currently on maternity leave from her only starts after 13 weeks. I’ve made an arrangement to pay part-time job, so it is now more crucial than ever that I can reduced amounts for gas and water, and have applied to the support my family. When the steel mill went into administration Energy Trust for help with arrears on my electric bill. I still have in January, it was absolutely devastating for my family. The fact to insure my property, keep a car on the road, and put food on the that we were also not paid for our last month of service was awful table. And it’s all getting harder by the day. We have been lucky, in for us. I literally had £6 left in my bank on the 25th of January. As that the freezer was full when all this happened. We’ve been lucky you can imagine, with three young children and a house to enough to collect three food parcels from the Seashells centre in maintain it is very rare to ever have any money left at the end of Sheerness, a scheme set up to help the steelworkers. I can’t thank the paid month, but with it being the month after Christmas we those involved enough, as these have been a godsend. It’s a shame were even more desperate for payday to come. My wife and I were that I can only claim one more, but we’ll have to make do. So what questioning how we were going to afford nappies or milk for our now with the works? Everyone waits with bated breath to see youngest children, which is something that you should never have what offers have been made. Even if the mill starts up again, to question. My wife was very down about the whole situation there’s no guarantee we’ll get our old jobs back. And there’s no and after just having a new baby it hit her even harder. It took other viable employer on the island. Nothing. Not for a skilled almost four weeks before any money was made available to our man with a family to support. Sheerness needs this steel mill, and family. As I had been in employment since I was 16, I am only why aren’t the government helping? Peacocks retail have been entitled to contributions-based jobseekers allowance for the time helped. Why not us? If there’s a continuation of no investment, being. This means my children are not entitled to school meals or either by the government or by the private sector, then Sheerness milk tokens and I am not entitled to free prescriptions, dental will be dead in its tracks. A town needs a large employer to care, etc. I find this unbelievable as I have never claimed benefits survive. 350 of my mates are in the same boat. Then there’s the before and paid my taxes for over a decade, yet it appears you get supply chain. I dread to think how many of us there are. Just a penalised for that. I have been applying for every job I can, and thought, has anyone been to Corby recently? I can’t see us staying my wife has had to return to her part-time job months before her unless there’s a major change. All joking aside, we’re considering maternity leave was due to end. This is really affecting her as she is properties in Slovakia, northern Germany and northern Scotland. missing out on those crucial months with her new son that she Please help us. Gary & Jen Lewis, Sammie, Ruby, and Peter, three was able to have with the other two. She is questioning herself and chickens, two hamsters and a rabbit.” her parental qualities, but she really has no choice. There are no available jobs on the island and I have been unsuccessful with During the mothballing of Teesside Cast Products, every application I have made. I loved my job, and am finding it very hard to try and imagine what I am going to do now. The amid much criticism from the Tories and Liberal Democrats, island has lost its main employer for men, and this is affecting the previous Government did get involved. Alongside many other areas of business. My only hope now is that a buyer is One North East, Ministers were active in brokering found to start producing steel in Sheerness once more. I think if potential deals with many potential buyers in the summer this does not happen, then the situation will hit me a lot harder as of 2009: Marcegaglia; Dongkuk Steel; and obviously I am still clinging on to that hope.” SSI. We knew but we could not publicly say that SSI Similarly, Gary Lewis writes: wanted to buy TCP at that time. The previous Government “First of all, a thank you to all who are doing what they can to gave £60 million in aid for retraining, specifically for the try and salvage what was Thamesteel. My story... I was lucky Teesside area, including for workers at risk in Dow enough to secure a position there in the autumn of 2006, lucky in Chemical. That money has since been cut by a third. 199WH Thamesteel21 MARCH 2012 Thamesteel 200WH

[Tom Blenkinsop] group on the steel and metal-related industry, of which I am a member. What a passionate and emotional However, the overarching point is that the previous speech it was. I also congratulate members of the Government were involved directly. They rolled up their Thamesteel taskforce, which he mentioned. The taskforce sleeves and got their hands dirty in lobbying and negotiating. was a brilliant example of how different, and sometimes I know that to be the case, as I was there in the area and conflicting, interests can work together for the greater living through the process every day for more than two good. I also put on record my thanks to Members on years. The departure of Kirby Adams paved the way for both sides of the House—although I have to say mainly a sale. It was not a lack of Government intervention on the Opposition side—who have supported the that was to blame; there was a deliberate policy by Thamesteel workers in their battle for justice. Mr Adams to undermine a Save Our Steel campaign on Before talking about that battle, I want to explain a Teesside. Thankfully, we won, and I wonder whether little about the events that led up to Thamesteel going the Prime Minister would be bold enough to consider into administration, many of which the hon. Gentleman Mr Adams such a close political ally now. touched on. Steel making first took place in Sheerness I say this again: this debate is timely. How could in 1972, and the plant was operated by a number of TCP’s future be saved and Thamesteel be allowed to companies until it was taken over by Allied Steel and founder? Why were unions embraced as an integral part Wire in 1999. A couple of years later, ASW went into of the former’s success, yet ignored, leading to negative administration, and the plant was eventually bought by outcomes, in the case of the latter? Saying that European the Al-Tuwairqi Group, otherwise known as ATG—keep markets are in the doldrums is not good enough, because that name in mind. Since taking ownership of what both TCP and Thamesteel have a history of selling to became Thamesteel, ATG has imposed on the site a non-European Union markets—Asia in TCP’s case, succession of disastrous management teams, which have and the middle east Gulf states in Thamesteel’s. This run the company into the ground to such an extent that debate is timely because of the imminent relighting of in the last three years Thamesteel lost £91 million. the now SSI-owned Teesside Cast Products blast furnace. I was part of the Save Our Steel campaign on Teesside, It came as no surprise, therefore, that Thamesteel which was supported by our local community, trade eventually went into administration, but what was surprising unions, the media and the men and women of Thamesteel. was the revelation that the work force were told at the end of December that all was well with the company I have a few suggestions for the Minister. Could we and they should have no fear for their jobs, despite the use the regional growth fund to attract any potential December wage bill being paid only because of an buyers that he might be aware of to the site? Could we injection of £170,000 from an ATG subsidiary company, talk to HMRC about holding off a little longer, to allow HAT Holdings BSC. The plant stayed open during other buyers to come forward? Can we please at least January, despite Thamesteel having 350 creditors to have the Secretary of State directly involved, meeting which it owed a total of £147 million. It has emerged in with the work force, who are desperate to talk to him? the past week that at least two creditors issued winding-up I will close with the words of the late Geoff Waterfield, notices, one at the end of December 2011 that would the Community union chair of Teesside’s multi-union have been issued as far back as October except for a committee, who led the campaign locally. Sadly, he died technicality. The order would have become effective on at the age of 43 in August 2011 from undiagnosed 30 January 2012, but on 25 January Thamesteel applied leukaemia. He said: to the High Court to enter into administration, appointing “When I see a blast furnace, I see a thing of beauty... I see Mazars as administrator. One wonders whether the something that has given thousands and thousands of people a dates were coincidental. way of life, a good, honest wage, the ability to pay their mortgages, go on holidays and bring up their families. That to me is fabulous, It has transpired that Mazars met with senior Thamesteel that is a beautiful thing. When you come to Middlesbrough and managers as far back as October 2011 to provide directors see that skyline... That blast furnace is the heart of Teesside. As with a summary of the insolvency scenarios available to long as it pumps, there is life in Teesside.” them, and a report was sent to shareholders in November. That is not just a Teessider’s fairy tale; the men and Thamesteel directors clearly knew during November women from Kent have the same view of their steelworks. and December that they faced a mounting financial It is a story for all steelworkers in Britain. There is a way crisis, so why on earth did they not share the information to save the site, and UK steel, if the Government do with their work force, rather than spring it on them on something to facilitate the process and lend their support. 25 January when the administrator made 341 workers So the question for the Minister is: “What are you going redundant? to do?” Those workers had not been paid since the end of Several hon. Members rose— December, and it was left to the Government’s Insolvency Service to step in and pay some of the wages, but only Philip Davies (in the Chair): Order. About eight Members up to a maximum of £400 per week. The Government want to catch my eye, and I intend to call the shadow also funded redundancy payments due to workers, and Minister at 10.40 am. I want to get everyone in, but that when we talk about the Government we should not will depend on everyone being accommodating and forget that it is the taxpayer who has had to stump up brief and helping everyone else out. the money. As is the way when dealing with public money, there was an inevitable delay in workers receiving 9.52 am anything from the Government, but I must pay tribute Gordon Henderson (Sittingbourne and Sheppey) (Con): to the Insolvency Service, which ensured that the vast I congratulate the hon. Member for Middlesbrough majority of the claims were processed within 12 days of South and East Cleveland (Tom Blenkinsop) on securing receiving the necessary documentation from the the debate in his capacity as chairman of the all-party administrator. I also add that the administrator went 201WH Thamesteel21 MARCH 2012 Thamesteel 202WH out of its way to work with the Community union and that want to close down the site and strip its assets, I other agencies, including Jobcentre Plus, to get the urge the Government to intervene immediately to save appropriate redundancy payment—RP1—forms filled this important national industrial asset until, as the in as soon as was practicable after the administration hon. Member for Middlesbrough South and East Cleveland was announced. Nevertheless, there are questions to said, somebody can be found who wants to produce ask about why it then took 15 days for the forms to be steel on Sheppey. sent by the administrator to the Insolvency Service. I think that, given the right help, there are people Due to the delay in paying workers, many of them willing to take on the plant, but the biggest problem is were in dire straits and it was necessary to set up a local the working capital that would be needed to get steel food bank to ensure that families did not starve. It is a rolling again until sales income was received. Working national scandal that in the 21st century, in one of the capital at full capacity would be a minimum of £25 million, richest countries in the world, redundant workers should but offering that sum as a loan guarantee would be a have to rely on food parcels to survive, and we must small price for the Government to pay to keep open the ensure that that never happens again. We have to change last remaining steelworks in the south-east. the benefits system to ensure that redundant workers I suspect that Ministers will advance at least two receive in a more timely fashion the help to which they reasons why they cannot intervene. The first is that, are entitled. Perhaps the Government will consider under EU rules, they cannot offer subsidies to the steel providing an immediate interim payment, which could industry, but if they are honest with themselves and us, be adjusted as soon as the paperwork was processed. they will admit that our European partners find creative For now, however, we must move on and address a ways to help their own industries. In Germany, for more pressing question: what is the future for Thamesteel? instance, the Government have tilted the tax system to My big fear is that the rolling mill will be stripped out help to reduce the high cost of energy in its steel and shipped to Pakistan. Why Pakistan? Because most industry. That is a subsidy in all but name. The second of the senior Thamesteel managers are Pakistani nationals argument will be that in the current economic climate, and ATG has an agreement with the Pakistani Government Britain simply cannot afford to help Thamesteel. That to set up a steelworks in that country. I have only will be met with disbelief by many people, including me. recently learned something that feeds my suspicion. It is I can think of any number of Government budgets unattributable information that although the bids for from which the money could be lifted. taking over Thamesteel closed on Friday, an offer was For instance, over the next four years, Britain will received on Monday of this week, which possibly came provide £1 billion in aid to India, a country with a from Al-Ittefaq Steel Products Company. ISPC is 60% thriving steel industry. Now there is an irony. Even more owned by Dr Hilal al-Tuwairqi, who also owns ATG. ironically, Britain will give £240 million this year to Let us be clear: stripping out the rolling mill from the Pakistan, the country in which ATG is building a Pakistani- Thamesteel plant would be the kiss of death for steelmaking subsidised steelworks to which it might well ship the on Sheppey, but it need not be that way. The Sheerness Thamesteel rolling mill. It would be outrageous if British steelworks, under all its previous owners, was a profitable aid were used, albeit indirectly, to help to build a plant with a skilled, dedicated and loyal work force. Its steelworks to employ Pakistani steelworkers while British financial plight has nothing whatever to do with that steelworkers were losing their jobs in my constituency work force and everything to do with senior managers simply because the British Government refused to intervene. who had no real interest in or understanding of the Of course, I might be wrong. The Minister might commit British steel industry. To the current owners, Thamesteel to helping to save the Sheerness steelworks and the 400 was just a vehicle for producing cheap, semi-finished jobs that go with it. I assure him that if he does, he will steel billets that could be shipped to Saudi Arabia to be make me and my constituents happy. rolled in the company’s Saudi mills. Thamesteel was a Before I conclude, I will briefly mention the steel cow that could be milked, and it was. administration of Thamesteel, as it is important. In my I urge the Government to recognise the Sheerness opinion, Mazars has acted professionally and with the steelworks for what it is: an important industrial asset. utmost propriety, in accordance with the objectives and Thamesteel, or whatever name the company ends up rules of administration, but I would like to raise a with, has the capacity to be profitable again. The plant concern about those rules. Is it right that an accountancy has the capacity to turn over an estimated £500 million firm consulted about insolvency options should then be annually and employ 800 people. We need that capacity. appointed administrator? Is it in order for the administrator Britain generates 1 million tonnes of ferrous scrap to make workers redundant without paying them the annually, of which 40% is recycled here, while the other wages and other payments to which they are entitled 60% is exported. At the same time, perversely, Britain when the company still has funds in its bank account? imports almost 50% of its steel reinforcing products. While on the subject of Thamesteel workers, although Surely it makes sense to convert more of the UK’s they can claim back the wages owed for January and ferrous scrap into steel in this country. The gap between those claims will be classed as preferential, claims will imports and exports will only get worse if Thamesteel is be capped at £800 per employee and the balance traded lost. as an unsecured claim. The company has 350 creditors, I understand that the administrator has received several including employees and connected creditors—people bids and is in the process of analysing them. I hope that with connections to the owners. For instance, HAT one of those offers, or more, is from a company that is Holdings BSC holds a fixed and floating debenture on interested in making steel. If a realistic offer is made, I the company for £170,000, which will be paid first. Of urge the administrator, the creditors and the Government the £143 million owed to creditors, £137 million is owed to accept it without hesitation. However, if the worst to connected parties. I would like the Government to comes to the worst and the only offers are from companies consider changing the rules of administration to ensure 203WH Thamesteel21 MARCH 2012 Thamesteel 204WH

[Gordon Henderson] Manufacturing and steelmaking are still very important to the UK, even if we do less than we did many years that all money owed to ex-employees becomes preferential ago. There are things that Governments can do—they claims, and that the claims of non-connected creditors are not powerless—to support those activities. I have take precedence over those of connected creditors. referred to the Chancellor’s Budgets, and his autumn A final aspect of administration with which I am statement gave a relatively small rebate on energy and unhappy is the fact that although the administrator has environmental costs to energy-intensive producers. The a duty to investigate the conduct of the directors in the scale of that rebate was a fraction of those available in period leading up to administration, and those findings Germany, but at least it represented recognition that the are then reported to the Insolvency Service, the report is Government have a role to play in trying to ensure that confidential, meaning that nobody can question the energy-intensive industries remain in the UK. thoroughness of the investigation or its conclusions. I would like the rules to be changed to allow a representative Jessica Morden (Newport East) (Lab): The hot strip of the work force access to the report and the ability to mill in Llanwern in my constituency was mothballed object to its content and its conclusions. last year because of the fall in demand for steel. Does Thank you for your forbearance, Mr Davies, in allowing my right hon. Friend agree that what its former workers me to make such a lengthy contribution. As you will need is help now? Tata’s £20 million investment in the realise, the issues involved in Thamesteel’s administration Port Talbot mill will help Llanwern in the long run, but and the plant’s future are complex. I could say much Government action is needed now, not in 2013, when more about the events leading up to administration, the measures for energy-intensive industries will be and there are many more questions that I want to ask, implemented. but at this time I want to say nothing that might jeopardise the possibility of Thamesteel being rescued Mr McFadden: My hon. Friend makes a good point. and will save my ammunition for another day. I mentioned the rebate to give an example of what the Government can do. They are not powerless when Several hon. Members rose— companies have a global choice about where to locate and produce. Philip Davies (in the Chair): Order. I reiterate that I Before I ask the Minister some specific questions, let will call the Front-Bench spokesmen from 10.40, so me say that I do not believe that any Government, of speeches will have to be considerably shorter. whatever political colour, can prevent the closure of every factory. That is not my stance. I was a Business, Innovation and Skills Minister before the election and 10.7 am the Department was not always able to prevent every closure. The Government cannot do that, nor can they Mr Pat McFadden (Wolverhampton South East) (Lab): magic buyers out of the air if they do not exist, but I, too, congratulate my hon. Friend the Member for there are things that the Government, the Minister’s Middlesbrough South and East Cleveland (Tom Department, and he and his Secretary of State can do, Blenkinsop) on securing the debate, which coincides aided by the good officials who have accompanied the with this afternoon’s Budget statement. If press reports Minister to the debate. are true, the statement’s main concern will be the tax affairs of people earning more than £150,000 a year. What is the situation with potential buyers? How Our concern is different: it involves the hundreds of many have declared an interest? What kinds of bid are jobs lost as a result of the closure of Thamesteel and, on the table? There is a world of difference between more generally, manufacturing and steelmaking and someone who simply takes the equipment and the plant their importance to our economy. and ships them abroad, and someone who is willing to It is likely that we will hear a lot this afternoon about continue production in the area. rebalancing the economy between finance and industry— My hon. Friend the Member for Middlesbrough indeed, the Chancellor ended his first Budget with a call South and East Cleveland mentioned the experience of for a “march of the makers”—but at Thamesteel, the Teesside, which is instructive. When the closure of that makers have lost their jobs and, as my hon. Friend said, plant was announced, many people would have given we as a nation have lost the product. I have some up on it and thought that nothing could be done and experience of that in my constituency, where the huge that the situation was hopeless, but that was not the Bilston steelworks closed many years ago. I hope that case. The plant might not have had the backing and the that does not happen to the constituency of the hon. belief of the management, but the potential buyers Member for Sittingbourne and Sheppey (Gordon believed differently. Henderson), but most of my constituents would say The complaint at the time was not that the Government that the area has never fully recovered from the loss of were doing nothing, but that we were interfering too such a major employer. much. I am prepared to accept that complaint, because, I do not want to do what often happens in such as I had to explain to the management, it may have debates by going over the history of the decline of owned the plant, but it did not have ownership of the manufacturing in the UK. Too many of this House’s overall situation. The Government had a legitimate debates on the subject are characterised by looking in stake in it, given the jobs that were at stake and the the rear-view mirror. Perhaps we focus too little on impact on the regional economy and on manufacturing globalisation’s impact on our manufacturing industries in the UK. I am delighted that a new buyer has come in and on the possibilities for the future, which is what I that has faith in the plant, the product and the workers, hope we can concentrate on. and that production has begun again. That shows that it 205WH Thamesteel21 MARCH 2012 Thamesteel 206WH is sometimes possible to find new buyers and that The Teesside Cast Products plant is in my constituency Government can play a role, as an honest broker, in of Redcar and we are still celebrating the fact that bringing people together. Sahaviriya Steel Industries took over the site a year last What role is the Department playing to try to act as a Monday. The fact that the plant has not yet made steel broker and to send out signals to potential purchasers is testament to SSI’s investment in and refurbishment that the UK believes in manufacturing? Is there, as my work on the site and its long-term commitment to hon. Friend has asked, any potential for purchasers to steelmaking in the UK. The plant will soon start—within apply to the regional growth fund for funding? Are days—to make steel and it will be a world-class site there funds available for training? Such funds have been again. discussed in similar circumstances in the past and they I commend the work force for their constructive may make the situation more attractive to potential attitude towards SSI’s proposed new culture at the site. buyers. There are things that the Government can do. We have had only one black spot—namely, a dispute At a more basic and prosaic level, will the Minister between Balfour Beatty and others over certain trades. I clarify the situation in relation to redundancy and notice am not taking sides in that disagreement, but payments? The Government have a role to play. My 20,000 working hours have been lost and I hope that it hon. Friend read out letters and spoke movingly about will be resolved as soon as possible. Our Thai friends the human effect on families with young children who are surprised that that has affected them in an area in are waiting desperately for redundancy payments and which jobs are so badly needed and that has such a relying on food banks. This is a desperate situation, passion for steelmaking. particularly for those families with young children. Overall, this has been a great story, with 700 jobs Some payments have been made, but will the Minister protected, more than 1,000 people recruited and at least assure us that he will use his good offices to ensure that another 1,000 in related jobs. The local community is any outstanding moneys, which are the responsibility of right behind it and the effects are already being felt: the Insolvency Service and the redundancy payments there is a spring in people’s step and Mary Portas’s offices, are paid as soon as possible? Families are desperately recent report to the Prime Minister even singled out stretched, so I hope he will do that. Redcar high street as bucking the national trend. That The previous Secretary of State, Lord Mandelson, is the effect that such developments can have on local has been mentioned, but if the Minister does not like communities. that reference, I urge him to consider a different As well as SSI, I have Tata’s heavy beam mill in my inspiration—namely, a previous Conservative Secretary constituency.It makes beams of outstanding quality—nine of State who said that he would be happy to intervene of the 10 tallest buildings in the world use them—but before breakfast, lunch and dinner. I am sure that all the mill has been affected by the construction downturn. Opposition Members would be happy if the Minister The Government are doing many welcome things, such took that person as his inspiration. as support for manufacturing and apprenticeships, and I hope the Minister will assure us that the practice of the regional growth fund, from which SSI benefited to not meeting the work force will end—I see no sense in help with training. not meeting them when they are desperate to meet—and The Government also want to invest in infrastructure, that he and his Secretary of State will do everything in which we have a great tradition on Teesside. In fact, I they can to attract a buyer. I also hope that potential have a picture on my wall of Lambeth bridge lying in purchasers will be made aware of any available funding. pieces in Middlesbrough before being shipped down Although the Minister cannot prevent every factory here. There have also been announcements on green closure, he can play an active role in trying to secure a technology. However, we need a lot more drive on such future buyer to continue steelmaking on the site under issues. In particular, we need to ensure that public discussion. That is the commitment that every Member procurement represents best value for the UK, not just from every party wants to hear. best price. In relation to how we deal with green technology, that includes where transactions might seem to be company Several hon. Members rose— to company, but there are actually huge underlying public subsidies in some projects. Philip Davies (in the Chair): Order. Six more Members Finally, I want to mention energy costs. I and a few have indicated that they want to speak and I will call the other MPs, some of whom are here today, started the Front-Bench representatives in 23 minutes. I am sure all-party group on energy-intensive industries in early that Members can do the maths for themselves. 2011. We have had great support from at least 10 industries, but the No. 1 affected sector is, of course, steel. Tata says that its sites in the UK pay 25% to 50% more for 10.17 am their electricity than its sites elsewhere in Europe. In the Ian Swales (Redcar) (LD): It is a pleasure to serve autumn statement, the Government acknowledged the under your chairmanship, Mr Davies. I congratulate the threat to competitiveness that that poses for UK industries hon. Member for Middlesbrough South and East Cleveland such as steel. The £250 million mitigation measures (Tom Blenkinsop) on securing the debate, and the announced in the autumn statement are welcome, but right hon. Member for Wolverhampton South East the mechanisms are still unclear and address only the (Mr McFadden) and my hon. Friend the Member for additional future changes without dealing with the cost Sittingbourne and Sheppey (Gordon Henderson) on gap that already exists between the UK and Europe. their encyclopaedic exposition of the situation at The delay and uncertainty surrounding that are deeply Thamesteel. I intend not to repeat the comments that unhelpful. Companies cannot adequately plan for the have already been made, but to talk more generally future in a business where long-term planning is the about the steel industry. norm. Uncompetitive business rates also have the potential 207WH Thamesteel21 MARCH 2012 Thamesteel 208WH

[Ian Swales] steel from elsewhere will be used to fund that development. That is not good enough. There is also the case of the to drive steel making out of the UK. Again, Tata Forth road bridge in Scotland, which will proudly be compared rates payable at two of its sites—one in the built with Chinese steel when UK steel in Scunthorpe Netherlands and one in the UK—and found a gap of and Dalzell is available. We need clear action on approximately £10 million a year. That differential needs procurement and supply chain development. to be closed. Those costs are significantly out of line We need action now on those three things to secure with those in the rest of Europe and are a threat to the the UK steel industry. As the hon. Member for Redcar ability of companies to invest and be competitive. At a (Ian Swales) said, it is a crucial part of the security of time when the Government are trying to revitalise UK this nation to secure UK steel. We need action on manufacturing industry, we should be doing all we can demand now, not tomorrow, and to bring infrastructure to support industries such as steel making by creating a projects forward. We need action on energy security level playing field on which it can compete. now, not in 2013. We need security for energy-intensive I hope that the Minister will say more about the plans industries now and a package to sort that out now, not to support energy-intensive industries, especially steel. one that takes all the time in the world. We also need The UK still has a steel industry that is vital for our action on procurement and supply chain development future security and prosperity, and I hope that the now. If the Government take those actions, I am sure Government will do everything they can to back it. that Labour Members will fully support and embrace that, because it is in the interests of UK plc and of workers, such as the workers we see here today who are 10.22 am rightly concerned about their living. Thank you, Mr Davies, Nic Dakin (Scunthorpe) (Lab): I am pleased to have I have said my piece. been called to speak in the debate. We have already heard from my hon. Friend the Member for Middlesbrough 10.26 am South and East Cleveland (Tom Blenkinsop), who gave an excellent speech, and other hon. Members how David Mowat (Warrington South) (Con): It is a pleasure important it is for the Government to act. Where the to serve under your chairmanship, Mr Davies, and I Government have acted in places such as Stocksbridge, congratulate the hon. Member for Middlesbrough South Teesside and, indeed, my constituency of Scunthorpe, and East Cleveland (Tom Blenkinsop) on his remarks. I there have been better responses for local people. Indeed, associate myself with his comment on blast furnaces. the role of trade unions working together with management The first time I saw a blast furnace in Port Talbot was a is significant in getting better outcomes for local formative experience for me. Every hon. Member would communities. benefit from spending some time in front of a blast furnace. I shall focus briefly on three things. First, I want to consider the need for demand now for steel and the I want to talk about one aspect of the issues facing need to introduce real infrastructure projects that create energy-intensive industries such as steel, aluminium, such demand. We know that there will demand with ceramics and cement—that of energy prices. I shall High Speed 2, renewables and nuclear, but is further focus on one of the drivers that we can do something away—towards the end of the decade. We need demand about while still meeting our carbon reduction now. We do not need announcements about small things commitments. happening; we need real things to happen, with real Today, business in the UK is paying around ¤10 a action on infrastructure now. Today’s Budget gives the unit for electricity. If a business were located in France, Government the opportunity to do that. that figure would be ¤7 a unit, which is the business rate. Secondly, as we have already heard in relation to That is a difference of about 40%, and a very significant energy supply and cost, the UK is far more expensive margin. That factor is important in the decisions being than its European neighbours. It is therefore difficult made. It is not true that our energy prices are more than for us to be competitive in relation to decisions being those across Europe generally—our gas prices are cheaper taken in places such as Mumbai, because we look than nearly everywhere in Europe—but electricity is potentially uncompetitive compared with the other expensive and continuing to get more expensive. It is European options available to investors. On the package hard for a Government to drive an industrial strategy in the autumn statement, a consultation was announced that involves rebalancing the economy when energy in March that will report in March 2013. That continues prices are on an upward track relative to our major the uncertainty. Even in March 2013, we will not know competitors. That is the issue. what that package of support looks like for energy-intensive About 18 months ago, I received a written answer industries. In the meantime, there is a policy vacuum from the Department of Energy and Climate Change and uncertainty, in which there is danger for UK steel. stating that 18% of business energy costs were caused That needs addressing now. by our green—or our renewables—policies, which is a The third element is the issue surrounding supply large chunk. That figure is set to rise to 30% by 2020. chain development and procurement, particularly in What matters is what that means relative to our competitors. new industries such as renewables. We need action to It is not possible for gross domestic product to grow if ensure that we are in a position to deliver and procure energy is expensive. As we move from a service-based steel making for our products that are being bought GDP to what I hope is a more manufacturing-based now. There has been the recent example of TAG Energy GDP, costs will be more in terms of energy per unit of Solutions in the north-east, which is a case study of GDP developed. what should not happen. UK investment and UK steel This is not about climate change. There are two are available, but the procurement process means that aspects to what we are trying to do with our energy 209WH Thamesteel21 MARCH 2012 Thamesteel 210WH commitments: reduce carbon and go for renewables. and those of my constituents, go out to the workers and The Climate Change Act 2008, which was rightly passed families of Thamesteel. We know exactly what they are by the previous Government, committed us to an 80% going through and the knock-on effect in the local carbon reduction by 2050. That is about the hardest community. We need to get the conditions right not thing I can imagine doing while we continue to grow the just for them, but for the whole of our steel industry in economy. A year later, the same Government signed up the UK. to an EU directive that said that, as well as an 80% I have attended two starkly contrasting meetings reduction, we would produce 30% of our electricity recently: a very gloomy meeting with steel manufacturers, from renewables by 2020. That is a contradictory objective. and a more upbeat meeting with motor manufacturers. There is nothing in the first objective that says we have The motor manufacturers said that there is investment to go for renewables at the pace and scale we did. We in the UK. They have high-quality products—high-quality could have gone much more quickly for nuclear power, engines and so on—and they asked: what has happened or for carbon capture and storage—even more quickly to the supply chain? So much of the supply chain now is than we are doing now, and I concede that the Government not in the UK. We have to get the steel part right, as are moving in that direction. well as the rest of the supply chain. We have to get the There is a serious consequence here. We have two conditions right for manufacturers to want to invest in deltas in energy costs for companies such as Tata, Alcan the UK in the long term. and others: the delta of increased energy costs due to In my constituency, Trostre does an exciting job of the need to meet our carbon commitments, which I turning around very quickly whatever anyone wants in accept as we have to do our bit, and the additional terms of a tin, to make exactly the right type of can delta, over and above that, to meet a large component with a two-week lead time. However, it cannot do that if of that carbon commitment through renewables—a it cannot get the raw materials—not if we end up having larger component than if we had just tried to minimise to import steel. We therefore welcome the investment in carbon at the lowest cost possible, which would have Port Talbot, but we must provide the right conditions created the most jobs. I have sat through many debates, for manufacturers to invest long term in steel. hearing about job losses related to the solar tariff. I Why on earth are we going down the road of the mad remind hon. Members that the tariff was 43p a unit of carbon floor price? We must work together with other electricity—the feed-in tariff that the Government belatedly countries on any form of combating emissions. We cut. In France, electricity is being generated at 6p a unit. know there were faults with the emissions trading scheme. That is not sustainable: it has to be paid for by somebody It was not perfect, but at least it was fair—it was a level and the buck is stopping at companies such as Tata. playing field for everyone across Europe. We are absolutely The Government are continuing to do a lot in their mad to impose an additional tax on our steel industry industrial policy, and with the growth fund, which is far that does not apply to any of our competitors across more focused towards the north of the country than the Europe. We have to get energy prices right. We have also regional development agencies were—apprenticeships got to encourage long-term investment in energy generation. and all that goes with them. Energy prices are critical, and unless we get them right that will all be for nothing. The mitigation packages, supposedly put in to help The £250 million is welcome and is directed at the because of the carbon floor price going so high, are energy-intensive industries, but that is an error in focus, piecemeal, coming in too late and not giving the long-term too, because all manufacturing requires energy. It is a stability we need. Furthermore, we need proper, sensible continuum. There are not just a few companies at the policies on taxation. We need more flexibility in capital top using a lot of energy; all manufacturing companies allowances. We need money not only for research and use energy. If they are paying 18% or 20% more than development, but for demonstration and deployment. their competitors as a result of the Government pursuing Unless the Government pursue an active industrial policies that we do not need so as to meet our carbon strategy, not only Thamesteel but many more steel commitments, the penalty will be job losses. Unfortunately, plants will fail. I therefore hope that the Minister is the jobs that have been lost are marginal jobs. They tend listening. not to be seen in the same way, perhaps, as jobs in a solar company or a wind farm company, which are very 10.35 am high profile and all that goes with that. The Government need to focus on that and get it right. Mr Frank Roy (Motherwell and Wishaw) (Lab): I will not go through all the arguments that have been made Several hon. Members rose— in relation to Thamesteel, but the Government need to prove that they are listening to hon. Members and to Philip Davies (in the Chair): Order. Three hon. Members the workers of Thamesteel. still want to speak. There are eight minutes to go before Steelworkers are part of an industry that is like no I call the shadow Minister. I call Nia Griffith. other—it can be dangerous and it can be temperamental. It is dusty. It can involve heavy lifting. As I remember only too well, it can be fatal on occasion. Most steelworkers 10.32 am in the modern 21st century do not have university Nia Griffith (Llanelli) (Lab): I congratulate my hon. degrees. What we say is that they are graduates of the Friend the Member for Middlesbrough South and East university of life—the life of a steelworks. Being a Cleveland (Tom Blenkinsop) on securing the debate steelworker means having a skill like no other, whether and on putting the case very clearly for active Government working in an ore blending plant, a sinter plant, the intervention to secure the future of Thamesteel and to coke ovens, the heat of a blast furnace, the basic oxygen provide optimum conditions for steel manufacturers to steelwork, a degassing unit or a continuous casting mill invest in the UK in the long term. My sincere sympathies, of strip, slab and plate. Those skills are not learnt by 211WH Thamesteel21 MARCH 2012 Thamesteel 212WH

[Mr Frank Roy] 10.40 am reading a book; they are learnt at the chalk face. The Mr Iain Wright (Hartlepool) (Lab): It is a pleasure to men in this room who are watching the debate should serve under your chairmanship, Mr Davies. I congratulate remain part of that chalk face. my hon. Friend the Member for Middlesbrough South and East Cleveland (Tom Blenkinsop) on securing the In Scotland, there are currently two plants: Dalzell debate. It was evident, during his passionate and emotional steel plant in my constituency, and Clydebridge in contribution, that he has steel—Teesside steel—coursing Cambuslang. Those companies have just put in a bid to through his veins. He is a massive champion of the UK rebuild the new Forth road bridge—35,000 tonnes of steel industry. steel. What did they get? Not an ounce. Not one ounce. Some 90% of the old bridge was built by Scottish steel. I shall concentrate on two broad things, and I hope Not an ounce of UK steel. Not an ounce made in that the Minister responds positively to both. First, I Scunthorpe. Not an ounce rolled in Clydebridge or am keen for the Minister to set out the role that he Dalzell. Nearly 30,000 tonnes of steel will be shipped anticipates the steel industry will play in the modern 12,600 miles from Shanghai, instead of being driven 34 British economy.It is evident that we Opposition Members miles along the M8 from Motherwell to the Forth. believe that a productive, thriving and competitive steel What a disgrace! What a way to treat a modern industry! industry is an essential part of a modern, prosperous Steel has a very proud history, but it has a very bright British economy. Steel is a vital component of the future. It is a material that will be used in the future. It industrial sectors in which Britain currently has a will be used for wind farms and offshore farms—all that competitive advantage and through which we hope to will be made from steel. Unfortunately, unless the steel lead the world in future, such as oil and gas exploration, industry is helped and unless the Government listen, an chemicals, aerospace, offshore wind technology and awful lot of that steel will come from abroad. automotives. Finally, I started by talking about Thamesteel; I It would be unsatisfactory to believe that we in the would now like to talk about my hon. Friend the UK could rely wholly on imported steel from overseas Member for Middlesbrough South and East Cleveland because, somehow, it can be sourced at much cheaper (Tom Blenkinsop), who gave a passionate speech. Quite cost. Such reliance would make us vulnerable to supply frankly, as someone who was a steelworker for 15 years, difficulties, quality concerns and price shocks and in the I could not have put it any better, and I congratulate my long run would undermine British competitiveness. In hon. Friend. I wish the workers of Thamesteel well. I addition, the UK would miss out on valuable research hope that the Government are listening to their argument. and development opportunities. Tata’s Teesside technology centre at Grangetown, for example, focuses on long Philip Davies (in the Chair): There are only two product research, which helps our nation retain our minutes for Tom Greatrex. valuable manufacturing expertise. Similarly, Tata’s automotive engineering group, again, based in the UK, 10.38 am is essential for developing new generation steel for the Tom Greatrex (Rutherglen and Hamilton West) (Lab/ automotive industry. Co-op): I will follow on briefly from my hon. Friend the It is strategically important that we in Britain make Member for Motherwell and Wishaw (Mr Roy). I represent steel. I hope that the Minister agrees and states what I the Clydebridge steelworks—the other steelworks in hope is his strong belief, which we in the Opposition Scotland that has been affected by the decision in would support, that a thriving steel industry in the UK Scotland. In the short time available, I will build on the is a necessary part of a balanced economy based on comments made by my right hon. Friend the Member manufacturing. As we have heard in this debate, we for Wolverhampton South East (Mr McFadden) about would also expect him to ensure that, as part of active Government intervention. There are opportunities for and intelligent government, the Government provide an Government intervention by using the procurement effective industrial strategy in partnership with business. process properly. What we have seen in the example of That is not to pick winners, to protect lame duck the Forth road bridge debacle is an absolute and companies and not to embrace protectionism, but to catastrophic failure of Government policy. Worse, in recognise the vital role that British-made steel plays in Scotland in the past few weeks, we have also heard a our economy and to use the power of Government to catalogue of excuses—commercial confidentiality, no help support that. Scottish firm bid, the procurement rules prevent Scottish steel to be used for the Forth road bridge—all of which We have heard that the steel industry is notoriously have been proven to be demonstratively untrue. cyclical and subject to difficulties. Cost pressures, especially in raw materials, are increasing. Demand for the product I remind hon. Members that there is no one from the is falling, especially in Europe, and even in China in the Scottish National party here to defend its decision. last quarter, and steel manufacturers around the world That is typical of how the SNP has behaved and is a are running down inventories rather than boosting output, wider point and a wake-up call, not just to the devolved and Thamesteel has been an obvious victim. I understand Administrations, but to the UK Government, because that this is a global matter, but the Government have we should support our manufacturing industry. real power here. What has the Minister done to ensure Procurement rules do not prevent that and imaginative that he can intervene to stimulate demand to provide use of those rules can enhance it. It happens in France support for our steel industry? and Germany, and other places, and we should be meeting that challenge and doing the same thing for the We have heard time and again in today’s debate how sake of the people here in the Gallery today and the measures such as the carbon floor price are impacting people whom we all represent. on energy intensive industries such as steel. It is estimated 213WH Thamesteel21 MARCH 2012 Thamesteel 214WH that British industry and British producers are paying was a plant record. There seems to be a strong prospect up to 50% more in energy costs than their counterparts of a viable business. In that light, will the Minister in France, the Netherlands or Germany. I anticipate, or outline what he, his Department, including other Ministers, at least hope, that the Chancellor will say something and the wider Government are doing to secure a buyer about this matter in his statement this afternoon. for this business that is not focused on asset stripping? What brokerage is his Department providing, between David Mowat: Will the hon. Gentleman give way? the administrator and potential buyers, as a means to send out a message to the market that the Government Mr Wright: I hope the hon. Gentleman will forgive value the steel industry and its component firms, such me if I do not. I have a lot to get through in only seven as Thamesteel? How have Ministers been directing the minutes. approach to this matter? Specifically, I should like the What active role is the Minister and other Department Minister to tell us what meetings BIS Ministers have for Business, Innovation and Skills Ministers taking to had in this regard. mitigate some of these additional costs for industry, as is happening on the continent, where the French and As my hon. Friend the Member for Middlesbrough German Governments are helping to mitigate such cost South and East Cleveland said, the previous Government pressures? rolled up their sleeves and got their hands dirty trying to negotiate a deal, thanks to my right hon. Friend the My hon. Friend the Member for Scunthorpe (Nic Member for Wolverhampton South East (Mr McFadden). Dakin) mentioned the supply chain. What are the In respect of the Thamesteel workers, are the Government Government doing to help establish and nurture a UK not only not getting their hands dirty, but merely washing supply chain, particularly for the renewable energy sector? their hands and saying that the company is no longer We have the biggest market anywhere in the world for viable? That would be a tragedy, not just for the 400 workers, offshore wind, and steel is a large part of the manufacturing but for the local businesses and the supply chain that process. However, the industry estimates that only about rely on the firm and for the wider steel industry in this 10% of the components going into offshore wind country. installations are British-made. Tata Steel is investing £9 million in its world-class pipe mills in my constituency How is the Department linking up with Kent county to increase the possibility of winning contracts for council, which I understand has set up a taskforce? Is offshore wind component manufacturing, but the company BIS providing a co-ordinating role to ensure that the needs the Government’s active support to ensure not local authority, good trade unions, such as Community, only that there is a level playing field for British steel local chambers of commerce, further education institutions, manufacturers, but that those manufacturers get on the such as MidKent college, and local businesses are all pitch in the first place. co-ordinated and pulling together in the same direction The Teesside offshore wind farm is a good example. to help Thamesteel be viable? Is there any waiving or It is a major contract that involves 27 turbines off the deferral of business rates to encourage people who want coast of Redcar, each requiring a monopile using Thamesteel as a going concern to make that happen? approximately 400 tonnes of steel plate. Tata Steel Why do Ministers not have more of a sense of urgency could have manufactured that plate in the UK at its or imagination about this matter? Scunthorpe plant and used pipe mills in my constituency The workers have rightly been a key concern for hon. and elsewhere across the UK to process the plate. Members. Many workers have not been paid since a However, as we have heard, the contracts have been couple of days before Christmas and are now, as we awarded wholly to Dutch and German steel manufacturers. have heard, having to resort to receiving food parcels. Why is this allowed to happen? Clearly, the Government The hon. Member for Sittingbourne and Sheppey (Gordon are not doing enough to support the creation of a UK Henderson) made the point in BIS questions last Thursday, supply chain to help steel. and he rightly did so again this morning, that when a Unless BIS takes a more active role and interest in company goes into administration, the wages owed to this matter, the economic benefits in moving to a low-carbon its staff should be the top priority. In his response to the economy will be exported to foreign competition at the hon. Gentleman, the Under-Secretary of State for Business, expense of British-based jobs. The Minister needs to Innovation and Skills, the hon. Member for North explain how he will help to create and support the Norfolk (Norman Lamb), said that he agreed supply chain, which would benefit the likes of Thamesteel “that the interests of workers should absolutely take priority” and Tata. For example, why do not the licences for such —[Official Report, 15 March 2012; Vol. 542, c. 376.] wind farms require a certain proportion of components He resolved to look into the matter. to be British-made? Why should not at least one British- based manufacturer be invited to bid for every contract? Given the urgency of the situation, will the Minister What are BIS Ministers doing to ensure that steel jobs update hon. Members about what can be done to and steel companies based in Britain can benefit from ensure that amounts owing to workers are the top the transition to a low-carbon economy? priority and that they are paid? What are the Government Secondly, I want to ensure that Thamesteel and its doing to ensure that workers receive redundancy packages? workers have as positive a future as possible and that Will the Minister update us about on the current situation? the Government are working hard and energetically to Three months after many workers were last paid, the support that end. Thamesteel is not a lame duck or an need to ensure that redundancy packages are provided obsolete company whose time has passed. It was regarded immediately is urgent. Can he confirm and reassure me as one of the fastest-growing steel manufacturers in the that all Thamesteel workers have now been provided UK. In 2010, which was a difficult year for the construction with their redundancy packages? industry, Thamesteel sales stood at £200 million, and it The Department needs to act with a greater sense of produced more than 100 tonnes of steel an hour, which determination for the wider good of the UK steel 215WH Thamesteel21 MARCH 2012 Thamesteel 216WH

[Mr Iain Wright] Sheppey to ensure that those affected receive all the Government assistance available to get them back into industry and for the welfare of 400 workers at Thamesteel. work as soon as possible. My hon. Friends have met to The Minister needs to have listened to the debate; he discuss the matter. needs to act; and he needs to act now. Let me tell the House briefly what is involved. Tailored practical support is being provided by Jobcentre Plus 10.50 am through its rapid response service and by the talent retention solution programme, which can help engineers The Minister for Universities and Science (Mr David to find jobs in engineering. A Thamesteel taskforce has Willetts): I congratulate you, Mr Davies, on chairing been set up locally by Kent county council to co-ordinate the debate. A lot of Members have been trying catch assistance; it has already met three times and is meeting your eye, which reflects its importance. again soon. The Department for Business, Innovation I also congratulate the hon. Member for Middlesbrough and Skills has been liaising with the Insolvency Service South and East Cleveland (Tom Blenkinsop) on securing on redundancy payments and unpaid wages, and I the debate. I know how important the steel industry is understand that, with the exception of one or two cases, for him, as he showed in his powerful and emotional all claims have been processed. We will of course maintain speech. I congratulate, too, my hon. Friend the Member the pressure to ensure that every claim is processed. Yes, for Sittingbourne and Sheppey (Gordon Henderson), BIS can and does speak to Her Majesty’s Revenue and who has been working energetically on the Thamesteel Customs, although we cannot guarantee what the response issue. His words show his commitment to that industry will be. The sale of the plant is a matter for the in his constituency. administrators, Mazars, but officials in BIS and UK Trade and Investment have kept in close touch with I had some involvement with Allied Steel and Wire them and have offered assistance to identify potential workers when I was shadow Secretary of State with buyers for the business. responsibility for pensions; they faced such pension problems as the hon. Member for Middlesbrough South and East Cleveland referred to, and I was impressed by Mr McFadden: Is the Minister willing to invite potential their dignity and commitment. At that time, I was buyers to the Department to talk about the Government’s pleased with the shared, cross-party view on the importance backing for manufacturing, what help might be available of ensuring that pension obligations were properly met. from the regional growth fund and all such issues that This morning, we have also heard important contributions they might wish to discuss? from the hon. Members for Redcar (Ian Swales) and for Scunthorpe (Nic Dakin) and my hon. Friend the Member Mr Willetts: There is indeed practical help available, for Warrington South (David Mowat). I followed with and I will try to cover that. great interest the speeches of the hon. Members for Mazars advised that it received some 70 initial approaches Llanelli (Nia Griffith), for Motherwell and Wishaw and that it organised more than 12 visits to the site. It (Mr Roy) and for Rutherglen and Hamilton West (Tom has received a number of bids, which it is considering as Greatrex). part of due diligence. Mazars set a closing date of last Ironically, I came to the debate straight from the Friday, 16 March, but it is willing to consider any Cabinet, where the Chancellor was reporting on the credible bid, including a late bid received on Monday. Budget to his colleagues. I must not breach Budget The bids are all commercially confidential, however, secrecy, but it is a Budget for enterprise and one that and BIS has not been provided with specific details, so I will show further commitment to and support for British cannot share any further information with the House. business. We recognise, however, that UK steel companies Sadly, we recognise that, given the depressed steel market and their overseas competitors have been forced to take in Europe and other companies’ idling production facilities, some uncomfortable decisions as they weathered the sale as a going concern might prove difficult, although economic storms of the past few years—companies we are absolutely committed to supporting manufacturing such as Tata Steel, which has had to reduce its work in Britain as part of our commitment to rebalance the force by 25% and its capacity by more than 20%. economy. Nevertheless, the UK steel industry remains a significant As part of the autumn statement, therefore, we employer, and it is a welcome and important part of our announced measures worth about £250 million to help broad manufacturing base. Its intensive research and energy-intensive industries, including the steel industry, development is an important contributor to the UK to reduce their energy bills. That package was intended economy. The steel industry underpins many parts of specifically to mitigate the effect of climate change manufacturing and, as we heard this morning, many policies and energy policies on energy-intensive industries local communities, in turn tying into crucial high-tech such as steel. In February, we launched the third round industries such as aerospace, automotive and construction. of the regional growth fund, worth £1 billion, to which Thamesteel, however, found itself at a significant steel companies can bid as long as they comply with competitive disadvantage on world markets, with state aid rules. The £125 million advanced manufacturing competition from countries with lower costs, such as supply chain initiative is expected to go live before Ukraine and Turkey, so, sadly, it went into administration Easter, and that will offer further funding opportunities on 25 January, with the immediate loss of 350 jobs. The for building supply chains. Minister of State, Department for Business, Innovation In addition, UKTI has a programme of support for and Skills, my hon. Friend the Member for Hertford the UK manufacturing sector, including steel, in partnership and Stortford (Mr Prisk), who has responsibility for with numerous stakeholders. The support includes business and enterprise,has been working closely with organising UK groups at overseas trade shows, leading my hon. Friend the Member for Sittingbourne and targeted trade missions and bringing potential buyers, 217WH Thamesteel 21 MARCH 2012 218WH investors and decision makers to the UK to see our Water and Sanitation manufacturing capability at first hand. The UKTI high- value opportunities team is continuing to work with plants throughout the UK to access large projects overseas. 11 am I, too, have been on trade missions on which we have Naomi Long (Belfast East) (Alliance): I am delighted been briefed specifically on major infrastructure projects to have the opportunity in the run-up to world water abroad so that we can help to secure export opportunities day tomorrow to initiate this brief debate on global for British businesses. That UKTI team recently helped access to water and sanitation, and to highlight one of Tata Steel to win a contract to supply steel to the the most significant challenges facing the world. Lack Singapore mass transit railway system. of access to clean water and sanitation remains one of In addition, the national infrastructure plan identifies the major barriers that must be overcome if real and a pipeline of more than 500 projects, costing about sustainable progress is to be made in education, health, £250 billion, extending to 2015 and beyond and including, food security and economic productivity. Without water, for example, more than £1.4 billion in railway infrastructure nothing else works. and commuter links. Those projects should make a An estimated 800 million people globally still do not significant difference by stimulating demand for steel have access to clean water, but an even larger number— and, we hope, creating significant supply chain opportunities 2.6 billion, or more than one third of the world for UK steel producers. population—have no access to even basic sanitation Procurement is important, too. After episodes such and so are exposed to the health risks associated with as Bombardier, we recognise the need to manage the poor sanitary infrastructure. As a direct result, people—the procurement and investment processes in the public majority of them children—are dying of diseases that sector so that we can sustain a competitive supply base the provision of potable water and sanitation could that meets the UK’s strategic needs. The growth review, eliminate almost entirely. That is illustrated by the fact about which we will hear more in a few hours’ time, that the biggest killer of children under five in sub-Saharan looked at how the Government can support businesses Africa, and the second biggest globally, are diarrhoeal and ensure that, when businesses compete for work, diseases, the vast majority of which are entirely preventable they do it on an equal footing with their overseas conditions caused by inadequate sanitation and hygiene. competitors. That is why we announced a series of measures at the strategic supplier summit last November. Mr Gregory Campbell (East Londonderry) (DUP): I We recognise that we need a more strategic approach to congratulate the hon. Lady on obtaining this debate. how we buy public goods, works and services so that we Will she join me in congratulating some of the faith-based can better develop and manage our supply markets. organisations and other charitable institutions that in Offshore wind power clearly has great potential as a small parts of sub-Saharan Africa have made significant market for British steel, so we understand the progress in delivering clean water to those communities? disappointment that an EDF offshore wind project contract, in which a UK company won some of the Naomi Long: I do indeed, and I will name some of fabrication work, does not involve UK manufactured them later, but there are many others that I will not have steel. We have to recognise that, ultimately, such decisions the opportunity to name. I recognise that that co-operation are commercial, but we are working with the Department and collaboration is an important part of trying to of Energy and Climate Change to see how we can help expand the network of sanitation and clean water to strengthen the supply chain so that UK companies internationally. are better placed to compete for such business. Together with the Crown Estate and senior executives from Mr Andrew Smith (Oxford East) (Lab): I congratulate 17 developers, we have therefore established the offshore the hon. Lady on calling this enormously important wind developers forum. debate. Does she agree that initiatives such as Oxfam’s We are committed to rebalancing the economy and water week, which engages children in both education we very much hope that, as part of that, we can see a and fundraising for specific projects in specific countries— strong manufacturing sector. Mali last year and Niger this year—are an important way of raising awareness and achieving practical results?

Naomi Long: I agree entirely. It is important to engage young people in that work, because they will no doubt carry it forward. Annually, more children under five die as a result of diseases arising from inadequate sanitation and hygiene than from HIV/AIDS, malaria and measles combined, so the impact is huge. Open drainage channels and sewers provide the environment conducive to the breeding of mosquitoes, which spread such diseases. I am a former civil engineer with a long-standing interest in international development, and this issue is particularly close to my heart. During my term as lord mayor of Belfast, WaterAid was one of my nominated charities, and since my election to Parliament I have continued to work closely with it and other charities, such as Tearfund, to pursue this issue with the UK 219WH Water and Sanitation21 MARCH 2012 Water and Sanitation 220WH

[Naomi Long] towards the millennium development goal can be accounted for by progress in India and China alone, whereas Government. I thank both charities for their support to progress in sub-Saharan Africa has generally been much me in preparing for today’s debate and, more important, slower; and although Sierra Leone, for example, has for their work with others to maximise access to clean made significant improvements in access to water, with water and sanitation globally. a national average of 55%, that masks a significant disparity between rural access, at 35%, and urban access, Glyn Davies (Montgomeryshire) (Con): I agree that at 87%. there is a huge amount of cross-party support for the Even allowing for the complexities of the picture, hon. Lady’s case, but will she join me in congratulating significant progress has been made on access to clean the Government on their commitment to overseas spending, water. However, my understanding is that, by contrast, which creates an environment in which we can take up the millennium development goal on access to sanitation the challenge? The money is available to do the job is not on track for delivery. Indeed, it has been identified throughout the world, and the Government should be as one of the most off-track millennium development congratulated on that. goals. I would welcome the Minister’s views on what action the UK Government could take to try to ensure Naomi Long: I have congratulated the Government that focus is maintained on taking forward work on that on that on numerous occasions, and I will congratulate specific problem. them on other matters, but I will also press them on At the current rate of progress, it has been estimated areas where further progress could be made. that it could take 350 years to ensure that everyone in This subject is important to my constituents, many of Africa alone has access to adequate sanitation. That whom signed up to the recent Tearfund postcard campaign differential delivery between water and sanitation may calling for more action on water and sanitation. Last be due in part to the stigma that surrounds discussion October, the hon. Member for Congleton (Fiona Bruce) of sanitation in many cultures, including our own. That and I joined Tearfund to present more than 10,000 postcards needs to be tackled in the developing world because to the Under-Secretary of State for International education on hygiene is critical to improving public Development, to highlight the importance of action. health. In India, for example, it is estimated that almost I recognise that in the UK, the biggest step change in 51% of the population still defecate in the open, and public health and mortality rates resulted not from that poor sanitation costs India around 6% of its GDP. medical advances, but from widened access to clean drinking water and adequate sanitation. During the late Fiona Bruce (Congleton) (Con): I congratulate the 19th century, as both water and sewerage infrastructure hon. Lady on introducing this debate and on her continuing expanded dramatically, the life expectancy of an average work. Does she agree that if we are to make real member of the population in this country rose by progress, the key is partnership working by voluntary 15 years—a remarkable increase, delivered over a short organisations and Church groups, which have been period. mentioned, and substantial Government resources? We are delighted that the Secretary of State is to attend the Mr William Cash (Stone) (Con): I am chairman of high-level WASH—water, sanitation and hygiene—meeting the all-party group on water and sanitation in the third in Washington. At that meeting, should he not focus on world. Does the hon. Lady agree that whatever progress partnership working between countries globally, and has been made on access to drinking water, which we ensuring that resources across the piece are shared and acknowledge is improving, only 63% of the world co-ordinated more effectively? population have access to sanitation, which is well below the 75% target, and that if we do not get sanitation Naomi Long: I agree entirely with the hon. Lady. It is right, water will not be right either? hugely important to maximise the benefit of our investment. Lack of access to clean water, sanitation and hygiene Naomi Long: I agree entirely with the hon. Gentleman, also carries with it significant gender implications that and I hope to come to that point. can, in turn, impact more widely on communities. The British Medical Association has recognised that commissioning of the sewerage system in London was Jim Shannon (Strangford) (DUP): Will the hon. Lady the most important breakthrough in public health—more give way? significant than the discovery of penicillin or development of vaccine programmes. If developing nations are to Naomi Long: I would like to make a little progress experience a similar step change in their outcomes, first. there can be no more effective place to start than In developing countries, women and girls still shoulder investment in water, sanitation and hygiene. most of the responsibility for the collection of clean There has been progress, particularly on access to drinking water from wells, which may involve long and clean water, and this month brought the welcome news arduous daily journeys. The provision of simple village that the UN millennium development goal on water has standpipes could therefore improve not only health, but been met five years early. However, it is clear that education outcomes for women and girls in particular, approximately 10% of the world population still have because, freed from that daily chore, they would have no access to clean water and there is still much work to time to attend school. The provision of proper and be done. Also, the global figure disguises the disparities private sanitation facilities in schools has also been in progress between, and even within, different countries. shown to reduce education drop-out rates for girls That needs to be considered carefully when planning reaching puberty. Women are more likely to bear the future programmes. For example, almost half the progress burden of caring for those who contract diseases as a 221WH Water and Sanitation21 MARCH 2012 Water and Sanitation 222WH result of poor access to water, sanitation and hygiene, Naomi Long: The hon. Gentleman is quite right. and that significantly restricts the degree to which they Water security and the cost of water in many developing can be economically active and independent. Most countries limits crop production, because people cannot disturbingly, lack of access to water and sanitation can afford to irrigate their crops. Countries that are able to leave women and girls more vulnerable to violence and develop irrigation systems have more productive fields sexual assault, either as they travel long distances to and are able to produce more food to feed their people. collect water, or as they wait until nightfall before It is a hugely important issue. defecating in the open. Members have asked me to be positive about what By investing in water and sanitation, we can improve the UK Government are doing, and of course I will be the health and education of millions of people around where appropriate. The UK Government have taken a the world and tackle gender inequality. Access to water lead on development policy, and I commend them on and sanitation transforms lives, improves health outcomes that. In 2006, DFID expanded its list of basic public and lifts people out of poverty. With every penny of services to include water and sanitation, and the UK public expenditure under scrutiny, it is important that and Dutch Governments announced their support for a the resources available for international development global framework for action at the UN in September are invested in ways that will have maximum impact 2008. The UK Government played a key role in the and are sustainable. Investment in water, sanitation and development of that global partnership, and “Sanitation hygiene meets that economic test. and Water for All: A Global Framework for Action”, was formally launched in 2010, with a high-level meeting The UN human development report estimates that that was linked to the World Bank spring meeting in for every pound invested in water and sanitation, £8 is Washington. The timing allowed Finance Ministers and returned in saved time, increased productivity and reduced those with responsibility for the delivery of water and health costs. It is therefore a prudent as well as a sanitation to attend. The second high-level meeting will necessary investment. Lack of access to clean water and be in Washington next month, and through the Minister sanitation is estimated to cost sub-Saharan Africa 5% I wish to thank the Secretary of State for indicating to of its gross domestic product—an amount equivalent to me and to other right hon. and hon. Members who the aid received by the region. That fact demonstrates wrote to him, that it is his intention to attend. the link between long-term sustainable development, I also thank the Secretary of State for his pledge to and the specific direction of aid towards water, sanitation continue providing support and guidance to the Sanitation and hygiene projects. The impact of such investment and Water for All partnership. As yet, however, although could be multiplied if we collaborate with other 35 developing nations have indicated that they will Governments and with non-governmental organisations attend, only seven donor countries have done likewise, and charities that can assist by providing education to and I urge the Government to use whatever influence local communities through Church and community they have to encourage other developed nations to networks, and by supporting increased capacity among engage with that key forum. I would also be grateful if state and non-state players in the field. the Minister outlined how the Government intend to The provision of water and sanitation is a fundamental make manifest that pledge of continued support in the part of the foundations on which our progress on other coming months and years. millennium development goals will be built. It is also an As I understand, DFID is close to announcing its area that delivers significant economic and social returns. portfolio review of water and sanitation projects, which One would imagine, therefore, that it would be the aid seeks to identify where more can be done. I await investment of choice, but sadly that is not the case. eagerly the publication of that report, and perhaps the Speaking of water and sanitation, Kofi Annan stated: Minister will confirm when that will take place. “No other issue suffers such disparity between its human importance and its political priority.” Fiona O’Donnell (East Lothian) (Lab): I congratulate In 2010, the UN-Water global annual assessment of the hon. Lady on securing this debate. Does she agree sanitation and drinking water looked at the amount that the Rio+20 summit is an opportunity to link spent by donor countries on aid for that sector. It found millennium development goals with sustainable that although levels of international aid have been development goals? rising since the mid-‘90s, the proportion spent on water and sanitation has declined. In the mid-‘90s, the proportion Naomi Long: Absolutely, and it is hugely important of aid spent on water, sanitation and hygiene was more to plan how we can streamline all those efforts. It is than 8%, but that has now fallen to less than 5.5%. The hard to have sustainable development unless you have UK’s bilateral aid to the WASH sector made up less access to clean water and sanitation. than 2% of our total aid budget in 2010, and less than Given that more than 35% of UK official development 50% of the average reported by other donors. assistance is now spent through multilateral agencies such as the World Bank, I hope that DFID’s review will have assessed thoroughly the performance of such agencies Jim Shannon: I congratulate the hon. Lady on bringing in delivering progress in the sector, and considered how this subject before the House. She has mentioned the the UK can influence agencies to deliver increased importance of water for sanitation, but it is used for commitments on WASH. I hope that it will also address other things such as watering crops, or the work done the lack of political priority given to investment in by the churches. Water is also used to make bricks for water and sanitation when compared with other aid industry, so it is important for employment, health and portfolios such as health and education. Without access food. Does the hon. Lady agree that sanitation is one to WASH, any progress achieved in other areas is part of the need for wider water provision? significantly constrained. 223WH Water and Sanitation21 MARCH 2012 Water and Sanitation 224WH

[Naomi Long] water, 250,000 people in rural communities having improved sanitation and 380,000 people being targeted in hygiene One practical measure that would maximise the impact promotion campaigns. of overseas development aid, would be to integrate I hardly need to stress, on Budget day in the UK, how WASH into other connected health, education and important it is that every pound of investment in this nutrition programmes. In 2006, the International sector delivers the maximum impact. Our work in this Development Committee recommended that sanitation sector, as elsewhere, is driven by the imperative that become an integral part of the work of health advisors. investment should deliver good value for money, be I would be grateful if the Minister indicated what based on the best evidence of what works and be spent progress has been made on that. transparently and accountably. That is why we In conclusion, I urge the Department for International commissioned a review of the UK Government’s portfolio Development to build on its activities to date, to be even of work on water, sanitation and hygiene promotion. In more ambitious in its future goals, and to use its influence particular, we wanted to know whether our investment internationally to press others to do the same ahead of was going to the right places, reaching the poorest and the Sanitation and Water for All high-level meeting in achieving the greatest impact possible. I can tell the Washington DC next month. House today, as requested by the hon. Member for Belfast East, that we will publish the details of that review to coincide with world water day tomorrow. 11.16 am I am pleased to say that, overall, the review shows that the portfolio provides excellent value for money, The Minister of State, Department for International delivering results across 14 major bilateral programmes. Development (Mr Alan Duncan): I thank the hon. Member The review also shows that our programmes are reaching for Belfast East (Naomi Long) for securing this important the people who need them most. In 2010-11, three debate, and I welcome other hon. Members who have quarters of the money that we spent through our country chosen to attend this morning. programmes was spent on basic systems—such as rural Ensuring access to water and sanitation for the poorest water supply schemes, hand pumps and latrines—that is, to pick a metaphor, the bread and butter of development. are most likely to reach the poorest. That is a higher When we get it right, so much else follows: children proportion than for almost any other donor. We are become more likely to reach their fifth birthday, and doing that in the countries with the greatest need, such they are healthier and in a better position to benefit as Sierra Leone, the Democratic Republic of the Congo, from education; women, who carry most of the world’s Ethiopia, Sudan, Bangladesh and India. water, are empowered; and economic growth and prosperity Detailed evidence from the review will inform my are enhanced and facilitated. While we fail to deliver right hon. Friend the Secretary of State for International those most basic necessities, not only are there an Development and my other ministerial colleagues when estimated 2.4 million preventable deaths each year, but they consider whether and how the UK Government generations of people become trapped in poverty. could do more. Just as importantly, the Secretary of Tomorrow is world water day, and this year we have State will share that evidence with other donor countries much to be proud of. We learned this month that the and developing country Finance Ministers when he millennium development goal of providing access to attends the Sanitation and Water for All high-level clean drinking water has been met, and that between meeting in Washington on 20 April. As hon. Members 1990 and 2010 more than 2 billion people gained access will know, the UK and Dutch Governments were backers to improved drinking water. It is rare in international of the Sanitation and Water for All initiative, launched development to get news as good as that, and it shows in 2008. Through that initiative, DFID has been seeking that when aid money is spent well, it can make a to secure better targeting of aid to the sanitation and tangible difference. Development works, and that is an water sectors, as well as improved transparency and example of the sort of progress that we can make. accountability from other donors and national However, a great deal of work remains to be done. Governments. Some 783 million people remain without access to clean At next month’s meeting, progress will be assessed drinking water, and sub-Saharan Africa remains off against past commitments, and we expect that new track. The challenge is most acute for sanitation, which commitments will be made. However, we do not want is one of the most off-track millennium development just new commitments to do more. To see an equitable goals: about 40% of the world’s population—2.5 billion spread of access to safe water and to make better people—still lack basic sanitation. progress on improvements to sanitation, we need better The UK Government are committed to accelerating targeting of aid. I can assure hon. Members that the progress in that area. Last year, we made a commitment Secretary of State will, based on our own experiences, to provide 15 million people with access to clean water highlight how well-targeted aid can reach poor people and 25 million people with access to sanitation and to in fragile states and encourage others to target resources improve hygiene for 15 million people by 2015. We are more effectively. also committed to helping the world’s poorest countries It is an injustice that the lack of something as basic as to harness the full potential of their water resources and clean water and sanitation should still adversely affect reduce the risks posed by floods, droughts and contaminated the lives of millions of people. That injustice has the water. In Sierra Leone, for example, the Department for potential to undermine the achievement of a range of International Development provides support through millennium development goals. For those reasons, the the Government, UNICEF and NGOs, to improve Government remain committed to dealing with this access to water and sanitation. In 2010-11, that resulted important issue. To that end, we will ensure that what in 100,000 more people having access to clean drinking we do achieves the greatest impact, that we keep learning 225WH Water and Sanitation 21 MARCH 2012 226WH and refining our aid programmes and that we share our Safety of Journalists Abroad knowledge and evidence with our partners, so that together we can all do more in the sector of water and sanitation. [MRS ANNE MAIN in the Chair] 11.23 am Sitting suspended. 2.30 pm Mr Don Foster (Bath) (LD): I am pleased to have secured the debate, which will focus on the sadly topical issue of the safety of journalists abroad. The debate is timely, as a meeting is to take place tomorrow in Paris at which the UNESCO international programme for the development of communication will consider the report, “The Safety of Journalists and the Danger of Impunity”. The UK will be represented by Professor Ivor Gaber. Recent news that has drawn much international attention to these issues. On 22 February, in the Syrian city of Homs, the American-born veteran war reporter Marie Colvin died, along with French photographer Remi Ochlik, when a shell hit the building in which she was sheltering. The 56-year-old had been a reporter for The Sunday Times since 1985 and had covered conflicts from Chechnya to the Arab spring. She won glowing posthumous accolades. The Foreign Secretary said: “For years she shone a light on stories that others could not and placed herself in the most dangerous environments to do so.... She was utterly dedicated to her work, admired by all of us who encountered her, and respected and revered by her peers”. The priest at her funeral said, simply, that she was “a voice to the voiceless.” Sometimes, reporters such as Marie Colvin play a greater role than that of providing a voice—Peter Oborne, in The Daily Telegraph, wrote: “At times, Colvin herself intervened in history, as she did in 1999 in East Timor when she helped save the lives of 1,500 refugees encircled by Indonesian troops in a United Nations compound. The situation was so dangerous that the UN commander wanted to evacuate, leaving the refugees to their fate. But Colvin insisted on staying behind, thus shaming the UN commander into staying - and averting a potential massacre.” Marie Colvin and Remi Ochlik are not the only journalists and media workers to have lost their lives in the course of their duties since the start of this year. Each year the International News Safety Institute publishes its “Killing the Messenger” report. These reports show, on average, two deaths among people working in news media every week—last year, for example, the INSI reported 124 deaths. Already in 2012, there have been 23 deaths, eight of them in Syria. Far more have been injured or have been the victims of abduction, hostage taking, harassment and intimidation. Because of the threats that they face, many journalists have had to resort to self-censorship in an effort to protect themselves, rather than lose their lives. Not all those deaths, injuries and threats to lives, freedom or jobs have been to journalists and others working in war zones. Some 60% of the loss of life in 2011 occurred away from conflict zones, in areas where investigations were underway into organised crime, corruption or other illegal activities. A press freedom violation can be an assassin’s bullet aimed to kill an investigative journalist and to intimidate and silence his colleagues. It can be the knock on the door from the police, bringing in a reporter to question her on her sources, or put her in jail with or without a 227WH Safety of Journalists Abroad21 MARCH 2012 Safety of Journalists Abroad 228WH

[Mr Don Foster] research shows that more than two thirds of the people responsible are not even identified because of the failure proper trial. It can be a restrictive media law, which puts to carry out sufficiently thorough investigations. In the power over editorial content into the hands of effect, in many countries it is almost risk-free to kill a censors and press courts. journalist—murder has become the easiest, and perhaps Journalists and media staff have been killed in the the cheapest and most effective way of silencing troublesome line of duty. Often they are local journalists working journalists. their own patch who died because someone did not like The record of Governments in far too many states in what they wrote or said, or because they were in the tackling impunity is appalling. I have heard reports of wrong place at the wrong time. Every job has its risks, intimidation of staff and families of the BBC’s Persian and journalists, whose job it is to bring into the open service. At one end of the spectrum, there are countries what someone wants hidden, are at greater risk than such as Gambia where journalists have been targeted, most, but the risks today are unacceptably high. In oppressed and jailed. In response to international campaigns some parts of the world, harassment, threats and worse in support of Gambian journalists, Yahya Jammeh, the have become an unavoidable part of the job. In war or President of the Gambia, declared: civil conflict, the risks often escalate: for example, the “I will kill anybody caught tarnishing the image of my government. invasion of Iraq triggered the deaths of 350 journalists. I will kill you and nothing will come of it.” Worldwide, more than 1,000 have died in the last 10 Of the situation in Syria, the French journalist Jean-Pierre years, but sadly, unless the life is that of a well known Perrin said: western correspondent, the world barely notices. “The Syrian army issued orders to kill any journalists that set Organisations seeking to ensure improved security foot on Syrian soil.” for journalists deserve our support and thanks. I have Given the army’s relevance in the death of Marie Colvin, already mentioned INSI, which, since 2004, has provided what information does the Minister have on that claim? basic safety training free of charge to more than 2,000 Since November 2009, the International Federation of news media personnel in 23 countries. Other such Journalists has been campaigning to force the Aquino organisations include Reporters Sans Frontières, the administration in the Philippines to investigate fully the Committee to Protect Journalists, the International Freedom killing of 21 journalists and media workers in what has of Expression eXchange and the Inter American Press become known as the Ampatuan massacre. Some progress Association. Our own National Union of Journalists, has been made, but not enough. For many years in which has 38,000 members, is the voice for journalism Somalia, which is one of the most dangerous African and for journalists across the UK and Ireland and is countries for journalists, no crime committed against a affiliated to the International Federation of Journalists, journalist has been investigated and so no one has been which is the world’s largest organisation of journalists, convicted, and now it appears that the current Transitional with around 600,000 members in more than 100 countries. Federal Government have been persecuting journalists, Both the NUJ and the IFJ monitor press freedom their union and media organisations. I am pleased that violations and campaign for greater safety for journalists our Foreign Secretary raised the safety of journalists who are at the greatest risk and have the least protection. with President Sheikh Sharif during his visit to Mogadishu They have established support for journalists and media in February, and that he has pressed for an independent staff in conflict areas through rapid safety training, and inquiry into the death of Hassan Osman Abdi. ensured that leading media organisations, such as the What about the leading democracies? The United BBC, Reuters, CNN and major newspaper groups, put States has consistently refused to carry out credible and health and safety in the mainstream of international independent investigations of the killing of journalists, media development strategies, take responsibility for including the killing of ITN’s Terry Lloyd near Basra in the safety of journalists and provide for their safety March 2003, and the killing of Spanish cameraman training. Jose Couso and others when US forces fired on Baghdad’s Despite that work, the continuing high level of media Palestine hotel in April 2003. The IFJ has catalogued 16 deaths cries out for more action by international institutions, other cases of journalists who have died since March such as the United Nations, to force Governments to 2003 at the hands of US soldiers in Iraq without a pay more attention to the safety crisis affecting journalists proper investigation being carried out. When the world’s and media workers. More has to be done to improve leading democracy refuses to prosecute those who are safety and to combat impunity. Impunity occurs when responsible for serious violations, what chance do we the political will to back investigations into the killing have when we confront the likes of President Jammeh of of journalists is absent; when legal frameworks are the Gambia? But what of our own Government? inadequate; when judges are weak or corrupt; when the police or investigating authorities are incompetent; when Mr Nigel Dodds (Belfast North) (DUP): I congratulate meagre resources are assigned to those responsible for the right hon. Gentleman on securing this important providing security and enforcing the law; and when debate. Before he moves on and talks about our own official negligence and corruption are rife. Combating Government, I want to put on record a tribute to impunity is a vital element of freedom and security. If Martin O’Hagan, the only journalist specifically targeted there is little fear of the case ever being investigated, let and assassinated during all the troubles in Northern alone the perpetrator being identified and brought to Ireland. He was murdered in September 2001 and sadly trial, there is no deterrent against people threatening, no one has ever been convicted of his murder. It is harming or killing journalists. Recent reports from IFEX important that everything possible is done to bring to show that in nine out of 10 cases of journalists being justice the people who carry out attacks on journalists killed while performing their professional duties, the here, and I wish the right hon. Gentleman well in his perpetrators of the crimes are never prosecuted. Other endeavours to raise this issue. 229WH Safety of Journalists Abroad21 MARCH 2012 Safety of Journalists Abroad 230WH

Mr Foster: I am very grateful to the right hon. Gentleman support from the Association of South East Asian for highlighting that case. He is absolutely right to say Nations, the Arab League or the African Union. The that our own Government must go out of their way to African Union, for example, has its headquarters in ensure that all cases of our own journalists being killed, Ethiopia, which is a known abuser of press freedom, whether at home or abroad, are thoroughly investigated. and its human rights body is in, of all places, Gambia, In some respects, however, I do not believe that our own which is a known jailer of journalists. Government have a perfectly clean record on this issue. If more action is to be taken, we have to look to wider Portuguese Timor, as East Timor was then called, international bodies. UNESCO is the sole UN specialist became the focus of Indonesian destabilisation in 1974. agency with a mandate to defend and promote freedom A civil war from August 1975 to September 1975 killed of expression and its corollary, press freedom, as well as more than 1,000 people, and instability and unrest to combat impunity. It has various tools and instruments continued afterwards. Into that situation flew two British at its disposal, including international humanitarian citizens, Brian Peters and Malcolm Rennie, who were laws, universal human rights laws, covenants, declarations working for the late Kerry Packer’s Channel Nine network and resolutions. They range from UNESCO’s resolution in Australia. They headed for the East Timorese border 29, which condemns violence against journalists and town of Balibo, where on 13 October 1975 they met obliges states to prevent, investigate and punish crimes three other journalists who were working for the rival against journalists, to the establishment of the Guillermo Channel Seven network in Australia. Three days later, Cano world press freedom prize, as well as the annual all five were dead. Their deaths form the basis of an world press freedom day, which is on May 3 each year. excellent new film, simply called “Balibo”. As I said in a All those instruments make it clear that journalists, previous Westminster Hall debate: including embedded journalists, are civilians and must “When Britons die abroad, we anticipate our Government be protected as such. In addition, the Geneva conventions doing all they can to help the relatives. We expect the Government define the murder or ill-treatment of journalists in times to seek as much information as possible and to share it with the of war or major civil unrest as a war crime. Journalists relatives. Sadly, in this case, the opposite happened. From 1975 have the same rights as civilians in armed conflicts, until 1995, there was almost complete inaction. The Government whether those conflicts are between nations or situations were involved in a disgraceful cover-up.”—[Official Report, 1 February of widespread civil conflict. 2006; Vol. 442, c. 97WH.] Our Government knew about the planned invasion and Those instruments are meant to compel Governments our ambassador, Mr Ford, advised the Indonesians to to abide by international laws and standards, but the keep it covert; consequently no warning was given to sad reality today is that not many journalists can rely on the journalists. After their killings, Mr Ford suggested international institutions to defend their rights when that they disappear, are jailed or are murdered. A few years ago, journalists were full of hope when the UN Security “we should ourselves avoid representations to the Indonesians Council adopted resolution 1738, which reasserted that about them”, journalists and media professionals engaged in areas of to which the Foreign and Commonwealth Office replied, armed conflict “We agree”. “shall be respected and protected”. Eventually it was left to a coroner in New South Unfortunately, that hope is getting thinner by the day, Wales in Australia to conduct an inquest into the death as UN bureaucracies are often reluctant to confront of Brian Peters, one of the two British journalists who certain Governments. had been killed. Her report in November 2007 said that all five journalists had been “deliberately killed” and Some countries do not even provide information they she named those responsible. She said that Brian Peters are requested to give voluntarily. Since 2008, the council had died of the international programme for the development of communication has encouraged member states to submit “from wounds sustained when he was shot and/or stabbed deliberately, information, on a voluntary basis, about actions they and not in the heat of battle, by… Indonesian Special Forces”, have taken to prevent impunity and about the status of including Christoforus da Silva and Captain Yunus investigations conducted into each of the killings of Yosfiah. She also said that Brian Peters was killed journalists condemned by UNESCO. Such reports are “on the orders of Captain Yosfiah, to prevent him from revealing intended to be included in a public report submitted by that Indonesian Special Forces had participated in the attack on the IPDC to UNESCO. The 2010 IPDC report, which Balibo.” dealt with crimes committed in 2006 and 2007, showed The Australian coroner concluded that an international that only 18 of the relevant 29 countries provided conflict was under way at the time, so the killing of the detailed information on judicial follow-up into cases of journalists was a war crime. There are two named the killing of journalists in their country. The 2012 Indonesians, both still alive, who are credibly accused of IPDC report, which dealt with crimes committed in war crimes against two British citizens, but still, five 2008 and 2009, showed an even worse response rate, years after the inquest and 37 years after the murders, with just nine of the relevant 27 countries submitting all our Government are doing is waiting to see whether responses. the Australian federal police will instigate war crimes Tomorrow, at the IPDC meeting being held at UNESCO, proceedings. In my view, that is not an adequate response. the latest IPDC report will be discussed, as well as a Our Government should be taking their own action. final draft of the “UN Plan of Action on the Safety of If individual Governments are failing, what about Journalists and the Issue of Impunity”. That plan is the various regional bodies? Sadly, those who look to based on a consultation involving all relevant UN agencies, those bodies for help are often disappointed because following, I am pleased to say, an initiative led by the they are apparently spineless. Journalists under fire in UK at a previous IPDC meeting. The aim of the plan is Asia, the middle east and Africa expect little, if any, to work 231WH Safety of Journalists Abroad21 MARCH 2012 Safety of Journalists Abroad 232WH

[Mr Foster] freedom and push back against member states that seek to block international institutions from fulfilling their “toward the creation of a free and safe environment for journalists mandate and enforcing international laws. and media workers in both conflict and non-conflict situations, with a view to strengthening peace, democracy and development 2.53 pm worldwide.” The plan includes strengthening UN mechanisms; doing Helen Goodman (Bishop Auckland) (Lab): It is a much more to shine the spotlight on countries that pleasure to see you in the Chair, Mrs Main. I congratulate appear to be dragging their feet in the protection of the right hon. Member for Bath (Mr Foster) on securing journalists; raising awareness; assisting member states a debate on an issue that is not only important but to develop their own legislation and mechanisms for becoming increasingly so because the problem seems to protecting journalists; improving collaboration with relevant be intensifying. agencies; and developing further safety initiatives, which When I found out about the debate I was, by coincidence, might include the creation of so-called media corridors reading a collection of essays by Vaclav Havel, one of in conflict zones. I am pleased that it was a UK-inspired the 20th century’s greatest dissidents and human rights initiative that led to the development of the plan. champions. He said: I welcome the statement given in response to a “Today, in the era of mass media, it is often true that if a deed lacks adequate coverage, particularly on television, it might just parliamentary question on 22 February 2012, by the as well have remained undone.” Minister of State, Foreign and Commonwealth Office, my hon. Friend the Member for Taunton Deane (Mr That, of course, is what repressive autocratic regimes Browne), that the Government “fully supports” UN rely on, and it is why we need good journalists. We are initiatives to improve the safety of journalists, but I grateful to them for going beyond the call of duty and believe that our Government can go further. For example, normal professional competence to run risks that most ours is one of the few developed countries that does not of us certainly would not. On that, Havel said: contribute financially to the IPDC’s work. We are a “Humanity’s thanks belong to all those courageous reporters member of its council, but we do not contribute to it. who voluntarily risk their lives wherever something evil is happening, We should do so, especially as much of its funding is in order to arouse the conscience of the world.” used to train journalists in how best to protect themselves I am sure that we can all think of legion examples over from physical attack. We should also consider how we our adult lifetimes, and perhaps even from our childhoods, can help other organisations that do similar work. I of seeing things on the television that have made us look forward to the Minister’s response to that. Perhaps realise how small the world is and how important it is to he will also explain why our Government does not take action. contribute to world press freedom day. I had some conversations with a war correspondent Our Government can go further in what they press for one of the major British newspapers, and I want to UNESCO to do. Currently, member states are only report what he said: “encouraged” to supply information on work to combat “Despite the recent deaths and injuries to journalists in Syria it impunity and on investigations into the deaths of journalists. is essential that there is independent reporting from there. Otherwise We should surely press for such reports to be more all we are getting are the views of the regime and the opposition.” detailed and mandatory. Reports should also be published That attitude is admirable, because a small number of sooner and in full—the report on killings in 2010-11 is people run risks for the benefit of a large number. The not due for publication until 2014. The IPDC should be correspondent also said that encouraged to speed up the process. Such actions, together “it is proving to be very difficult to work inside Syria. The sheer with the widest publication of reports—or of failure to ferocity of the regime attacks means that you are vulnerable and report—will help to put teeth into UN Security Council unlike Libya for example, where the rebels held half the country, resolution 1738. there is nowhere to run to. Another difference between these two conflicts is that the journalists captured by the Gaddafi regime Furthermore, we must press UNESCO to make it were all eventually freed”. absolutely clear that the promotion of safety and the It does not look as though that is the case in Syria. ending of impunity have to apply in non-conflict areas This debate raises issues about the role and responsibilities as well as in war zones. “Conflict” should be viewed in of media organisations and about Governments. British its broadest interpretation. States where there is impunity media organisations are obviously careful about where should have to face a persistent international publicity they send their staff, but journalists are concerned campaign, not once a year but every time they acquiesce about how freelancers are treated—not that they are in, sanction, or turn a blind eye to the murder of a treated as somehow expendable, but that less responsibility journalist. They should be made responsible for their is felt towards them. That is clearly not right when negligence and, in many cases, their complicity. Again, I media organisations and the rest of us take freelancers’ look forward to the Minister’s response to that point. stories and pictures. Freelancers are obviously on temporary We need to be seen to take these matters seriously, so contracts and are often cash-strapped, and few of them will the Minister consider one other suggestion: that have hostile environment training or are insured. They annually the UK voluntarily releases and distributes are under not exactly more pressure but more temptation full details of its representations and actions relating to to run risks that others might not, and I have been told the rights and lives of threatened journalists? that that might be especially so with tabloids and news Today hundreds of journalists are in jail, and scores organisations that do not maintain international offices are killed each year. Journalists working in dangerous in different parts of the globe. Media organisations conditions feel isolated and abandoned by the very have responsibilities, and they need to consider how international institutions created to protect their rights. they treat everyone whom they pay to get news for their I want our Government to speak out forcefully for press outlets. 233WH Safety of Journalists Abroad21 MARCH 2012 Safety of Journalists Abroad 234WH

Another thing that came from the remarks made by brigade of the Libyan militia. They were working for the right hon. Member for Bath is that the high and Iranian television at the time, and they were held on growing number of deaths is mainly made up of people allegations of spying. As soon as it occurred, the family working in their own countries. Last year, 106 people made contact with me, as the Member of Parliament died reporting overseas, but people who are reporting in for one of the journalists involved, and with the hon. conflict situations or under violent and autocratic regimes Member for Carmarthen East and Dinefwr (Jonathan are not just caught in the crossfire, but targeted and Edwards), who represents another member of the family. attacked for what they are writing and filming, by their The families, as one would expect, were expressing regimes, terrorist organisations and criminal gangs. We considerable fear and uncertainty about the prospects need to consider that issue carefully. and fate of their sons, when several things happened The IFJ research also revealed that the great majority simultaneously. The Foreign Office, spurred into life, of deaths have occurred in peacetime, which tells us that made immediate contact with the families and the Members journalists die not only in war situations but when of Parliament contacted on their behalf. Officials in reporting from countries that do not respect human Libya also made instant contact with the two journalists, rights and where the press is not free, as it is in this thus ensuring that they were held in as reasonable country. That is a major part of the risks that they face. conditions as could be expected in the circumstances The right hon. Member for Bath spoke about the and that they had food, water, any necessary medical problem of impunity—a serious problem in Russia. The provisions and access, if at all possible, to a telephone to whole world knows of the murder of Anna Politkovskaya make even the briefest of calls back home. I particularly in 2006, but it is probably not as well known that the want to mention Mar Menendez at the Foreign Office Russian Union of Journalists has found that between in London for co-ordinating that process and ensuring, 1993 and 2009, 300 journalists died or disappeared. The whatever time of day or night, that we MPs and the National Union of Journalists is running a campaign family members knew what was going on as far as that focusing in particular on the situation faced by women was possible in those unclear circumstances. journalists. When women journalists are in risky situations, Finally, the Minister with responsibility for the middle they are threatened not just with violence but with east and north Africa, my hon. Friend the Member for sexual abuse and attack, and particular care must be North East Bedfordshire (Alistair Burt), sent me an taken. The NUJ believes that women are put into even unsolicited text at 10 o’clock on a Sunday night simply riskier situations, which is extraordinary. to alert me that the two journalists had been transferred The international status of journalists under the Geneva from the militia to the Libyan authorities, that any convention is extremely important, as is the role of the charges or potential charges of spying were being dropped United Nations and UNESCO’s potential to protect and that they would return to the UK as soon as journalists in countries where they are being threatened possible—a process that has now been successfully and to ensure that their rights are enforced. I do not completed. want to delay hon. Members for long, but I hope that I use this opportunity to put that on the record, the Minister will be able to tell us what he is doing to forgetting any party or political differences, to pay ensure that international forums use all available levers tribute to those involved for reminding us that when the to increase the safety of journalists. chips were down—as they certainly were over the days and weeks that my constituent was being held against 3.2 pm his will—the system worked well. Having spoken to Gareth Montgomery-Johnson’s mother and father, I Simon Hart (Carmarthen West and South know that they too are particularly grateful for the help, Pembrokeshire) (Con): I join others in thanking my support and guidance that they got from the Home right hon. Friend the Member for Bath (Mr Foster) for Office. I thought it would be remiss of me not to record securing this debate and in paying tribute to journalists that formally. around the world for the work that they do to bring important subjects to our attention. One category that might have been overlooked is that of journalists embedded 3.7 pm with military units in active conflict zones. Although John McDonnell (Hayes and Harlington) (Lab): I they experience the greatest protection that the Army or congratulate the right hon. Member for Bath (Mr Foster) Ministry of Defence can offer, they still willingly and in on securing the debate and on his excellent opening some cases cheerfully put themselves in considerable speech, which set the discussion in context. I am secretary danger to bring us the full reality of the circumstances of the all-party parliamentary group for the National in which our armed forces operate. We should recognise Union of Journalists, of which he is also a member. We that as frequently as we can. have been addressing the subject for numerous years I will touch on two subjects that are slightly distinct and have had a series of ministerial meetings, including from the theme on which my right hon. Friend based with the Secretary of State for Defence some years ago his speech. The first is the impact of the danger that about embedded journalists and what mechanisms could journalists face daily on their families at home. Secondly—to be put in place. I concur with the statement about the do something unusual that I hope the Minister will Foreign and Commonwealth Office. When individuals approve of—I want to offer a tribute to the Foreign and have been detained or gone missing—a number of Commonwealth Office for how it has handled an incident journalists have disappeared—the FCO has been nothing that close to my heart. but superb in the support that it has given to families On 22 February, Gareth Montgomery-Johnson—a and the representations that it has made. constituent of mine from a small village called Llansteffan We thought that our representations years ago were in Carmarthenshire—and his colleague Nicholas Davies- an opportunity for us to tackle the issue of impunity. Jones from nearby Llanelli were arrested by the Misrata Various international instruments were in place, and we 235WH Safety of Journalists Abroad21 MARCH 2012 Safety of Journalists Abroad 236WH

[John McDonnell] As the right hon. Member for Bath said in opening the debate, everything comes back to the question whether thought that the number of journalists dying and we can get UNESCO and other international organisations disappearing would decline, but that has not occurred. to ensure that there are reports on investigations into It is shocking. I went through last year’s list. I will not crimes against journalists. The investigations that do read the names into the record, as it would take too take place are extremely limited, and the reports on long. Most names are probably not even notable; often, them are often not published. Indeed, even if they are, they were simply journalists working on the ground at there is no follow-through against the regime or the local level. The list ranges around the world and includes country involved—we do not seem able even to expose support workers as well as journalists and TV production them effectively. crew. The Government could take a lead on the issue. That I will read out the figures for the past five years. I is not a party political point, and Members across cannot remember when we last debated the issue, but parties have urged such action in debates in the past. we certainly debated it in 2006. In 2006, we were angry The UK Government need to be the Government who and concerned because 155 journalists and staff were are seen to stand up for journalists around the world. killed. Then, in 2007, the number rose to 172. It was 85 Where they are a member of an international body that in 2008, 139 in 2009, 94 in 2010 and 106 in 2011. The has a role in protecting journalists against such crimes, right hon. Gentleman is correct: the number has grown they should not allow it to meet without our raising to 120-odd in the updated figures and, therefore, things these issues and ensuring that we gear up for action. are not improving. Records prepared by the NUJ, working In addition, we need to put the issue on the agenda in with the International Federation of Journalists, confirm some of our bilateral relationships. For example, the that more than 1,000 journalists and support staff have next time the Government meet Putin, we have to put been killed over the past 10 years. Only one in eight of this issue back on the agenda. Russia has been one of the killers is ever prosecuted, and two thirds are not the worst places for journalists, who are hounded simply even identified. for revealing some of the corruption in that country. We cannot try to develop harmonious relationships with As the right hon. Gentleman said, we can identify countries while turning a blind eye to the atrocities that individual regimes. The Gambian regime under Jammeh are perpetrated against journalists just because they are has been a nightmare, and we have raised the issue time doing their job. and again. Jammeh will brook no opposition or democratic debate, and any journalist who reports on corruption in We need to think in more detail about the mechanisms the regime is risking their life. Many journalists have left that can be used not only to expose countries, but to the country, and this country has given many of them ensure that action is taken against them. We should refugee status. seek to isolate those countries and regimes that are notorious for assaulting and murdering journalists simply Given that we are taking on such regimes, it is for undertaking their jobs. embarrassing that we have not been able to secure a The right hon. Gentleman mentioned the Philippines, proper inquiry into the deaths in Iraq of Terry Lloyd which is a stark example of what we are talking about. and the person working alongside him. When democratic We virtually know who the killers are. We know how countries do not pull their weight, it is difficult to journalists have been murdered and what butchery has enforce proper practices in other countries. taken place, but no action is taken. When defendants I share the concerns my hon. Friend the Member for are brought to court, they are not the real defendants, Bishop Auckland (Helen Goodman) raised about women. and the people who motivated or employed the killers On international women’s day, the NUJ, via the IFJ, are never prosecuted. We should expose such rogue once again raised the issue of the extreme violence regimes for their attacks on journalists, and the international against women. The IFJ and NUJ have consistently family should isolate them. tried to expose and denounce individual cases. As Mindy Somalia has also been mentioned, and I pay tribute Ryan, the chair of the NUJ’s equality council and the to the Foreign Office for the work it has done to ensure IFJ’s gender council, said: that we secure the best protection we can for journalists. “The climate of impunity for crimes against female journalists One issue there, however, is that the secretary of the constitutes a serious threat to the most fundamental of free National Union of Somali Journalists was murdered. expression rights. Moreover, there is an on-going concern over the We are playing an increasing role in providing assistance fact that the authorities tend to deny that these women have been to Somalia, and we are developing the country and killed because of their work as journalists. Instead, they tend to investing in it to ensure that we bring peace and security indicate robbery or ‘personal issues’ as motives of the media to the Somali people. Whatever governmental systems killings.” are established, however, we need to embed in Somali Unless we can demonstrate that women are being culture the critical and important role that journalists raped, abused and murdered as a result of their professional play both in developing democracy and as one of its work, what happens to them suddenly becomes just an foundations. We need to embed in the Somali culture ordinary crime, and countries and regimes can act with and system of government a respect for journalists, as impunity.One of the worst examples involved the journalists well as protections for freedom of speech, freedom of who were exposing the sexual abuse and assaults taking journalism and democratic expression. place in the Democratic Republic of the Congo, where I want our Government to stand up on this issue. more than 8,000 cases of sexual violence were perpetrated There is not a lack of political will, but we need to tell in a single year. Women journalists, in particular, came the rest of the world, “If no one else will, we are going under attack and faced threats as a result of the work be the country that protects journalists and puts this they did to expose those things. issue on the agenda whenever we can. We are going to 237WH Safety of Journalists Abroad21 MARCH 2012 Safety of Journalists Abroad 238WH be the country that makes sure that international bodies the role of so-called citizen journalists. People now perform the roles set out in their statutes.” There are blog, tweet and post pictures taken on their camera various protections for journalists in statute; the Geneva phones, or video footage that they have taken in the convention has been mentioned, and we have various middle of unrest. Sometimes that is the only voice that UNESCO and UN directives. All the law is there, but it we hear about what is really going on. Those people needs implementing. Our role is to shame international give a voice to protesters and ordinary citizens who organisations into working alongside us to ensure that would otherwise be voiceless. It is far more difficult to such statutes are implemented. bring those people, who are sometimes known as netizens, In addition, we must call out those regimes that or citizen journalists, under the formal umbrellas of murder and butcher journalists simply for reporting the protection. They will not be trade union members or truth. In that way, we can stand as a beacon of light on work for companies that can protect them and push the issue and help to reduce the catalogue of death and their case. However, there is not, these days, a clear murder that has gone on year after year. We were here dividing line between one form of journalism and another. five years ago, and I do not want to be here in another Even in this country, we have bloggers who are now five years, after another 500 journalists have been killed. regarded as mainstream journalists. They can be seen I do not want to see any more Marie Colvins, and I do on “Newsnight”, but the bulk of their work is blogging not want to see any more disappearances. from the street. In some countries where the mainstream media are banned, or subject to serious repression, the 3.17 pm voices of those citizen journalists are the only ones that we hear. I would be interested to know what efforts have Kerry McCarthy (Bristol East) (Lab): I join other been made to bring those informal journalists under the Members in congratulating the right hon. Member for umbrella of protection. There is little mention of that in Bath (Mr Foster) on securing the debate and on highlighting the UNESCO draft action plan. some serious examples of the danger that journalists My hon. Friend the Member for Hayes and Harlington continue to face while working overseas. (John McDonnell) talked about the need to build a We are all familiar with high-profile cases such as the strong press in the countries concerned. The stronger recent tragic death in Syria of Marie Colvin, an the press, the safer and better protected the journalists internationally renowned foreign correspondent who are, because other people working in the field will be was rightly feted for her bravery and for her determination able to highlight abuses. I have been involved with some to carry on and get the story, even though she faced work being done on that front by the Westminster great personal danger. However, as my hon. Friend the Foundation for Democracy. Quite often in meetings Member for Bishop Auckland (Helen Goodman) said, with members of delegations from abroad, or at overseas we do not hear as much about the local journalists who conferences, it is possible to talk to politicians about are investigating corruption or reporting on conflicts, their work as politicians, but rarely is there an opportunity and who also run a serious risk of persecution, injury or to talk to journalists. The politicians often do not have death, but who do not have the benefit of a Government the support of a free, robust and well equipped and overseas who can raise concerns and provide consular resourced press. That makes it difficult for them to do support. their work of democratic scrutiny. There is considerable Reporters Without Borders has said that local journalists scope for the UK Government, whether through the pay the highest price every year to guarantee our right foundation or otherwise, to do more to promote strong to be informed about wars, corruption and the destruction and independent media in such countries. of the environment. Let me cite one example. I have Today’s debate is timely, as UNESCO is presenting recently returned from a visit as part of a delegation to its draft action plan this week. UNESCO notes that Colombia. We looked at the human rights situation there has been little improvement in the safety of journalists there and met a great number of human rights activists, in the past few years. Figures for casualties tend to vary journalists and campaigners for press freedom and civil quite dramatically from year to year, depending on freedoms. The Minister has also just returned from circumstances, so there was a fall in the number of Colombia, although I gather that his trip was mainly to deaths in 2007 and 2008, because the situation in Iraq discuss trade issues. However, he will, of course, be very improved, but there was a significant rise in 2009 because much aware of the human rights situation and the risk of the one-off horrific incident of the deaths of 30 to journalists, and perhaps he will tell us whether he had journalists in the Philippines on 23 November. There an opportunity to discuss those issues. are some differences between the figures cited by the The right hon. Member for Bath talked about impunity, UN, those reported by Reporters Without Borders and and the crux of the matter is that if we do not ensure those of the International Federation of Journalists, that those who are guilty of crimes against journalists but all the sets of figures make it clear that across the are brought to justice, whatever those crimes are, there globe journalists are still coming under attack and will be no deterrent to those who want to threaten or being censored, kidnapped, threatened, arrested, jailed, terrorise them, or otherwise to prevent the development forced to flee or even killed. of a free press, or stop journalists working. A free press The draft action plan emphasises the need to extend is one of the most essential elements of a democracy, UNESCO’s work, such as in assisting countries to and one of the most important tools for promoting it, develop laws and mechanisms that support, rather than and opposing oppression. It must be protected, which suppress, freedom of expression and information, and includes bringing people to justice. to implement the rules and principles set out in UNESCO’s These days, the issue is not just press and broadcast 1997 general conference resolution on violence against journalism, which we might describe as mainstream journalists. The Minister may well say that that the journalism. The Arab spring, in particular, has highlighted draft action plan stems from a meeting that was called 239WH Safety of Journalists Abroad21 MARCH 2012 Safety of Journalists Abroad 240WH

[Kerry McCarthy] awful cases. I am full of admiration, as are others who have spoken in the debate, for those who bring us news following a UK initiative last year, and I would be from around the world, many of whom take enormous interested to know more about the role that the UK risks and who occasionally pay a great price to provide played in drawing up the draft plan, and what role it that service. I think we are all sometimes inclined to envisages in taking it forward. When will the five aims take it for granted that we can switch on the television of the plan be implemented and what resources will be or radio or read a newspaper and feel that we have been devoted to that? transported to an area of great hazard and danger and Recently, the Government have taken considerable given an instant understanding of the political situation interest in Somalia, with the conference in London, and threat to life there. Sometimes it is easy to forget which I welcomed. I have met journalists from Somaliland, that the person who brings that news and information and even there, where it is relatively peaceful, there have to us is in that environment, as are the cameraman and been problems with the jailing of journalists. Are there other support staff. At great risk to themselves they countries where the Minister feels the UK could play a inform us, and without their doing so we would not be particular role—perhaps on a pilot scheme or project informed. basis—and do imaginative and innovative things to The efforts of such people enable voices that would support the development of a free press, as well as otherwise go unheard and events that would otherwise protect those who promote it? go unseen to reach audiences not just in the United Kingdom, but around the world. Although there are 3.25 pm distinguished journalists of all nationalities, British journalists and news organisations play a leading role in The Minister of State, Foreign and Commonwealth informing not just British audiences but global ones Office (Mr Jeremy Browne): Thank you, Mrs Main, for about global events. The deaths of Marie Colvin, Remi giving me the opportunity to conclude this fairly brief Ochlik and Rami al-Sayyed while reporting with great but important debate. I pay tribute to my right hon. bravery from Homs are a terrible reminder of the risks Friend the Member for Bath (Mr Foster), who has a that journalists take to report the truth. Every Member long record in his 20 years in the House of championing who has contributed to this debate has rightly dwelt on the safety of journalists. It is to his credit and to the their deaths and paid tribute to their work. benefit of the House that we have the opportunity to discuss it this afternoon. I thank other hon. Members This Government attach great importance to freedom who have taken the opportunity to take part in the of the media, which with the freedom to express one’s deliberations. Of course, the main business of the House views is fundamental to a strong democracy. A free today has been the Budget statement in the main Chamber, press allows space for challenge and innovation, supports but there are many other important things happening in transparency and deters corruption. It exposes human the world and the one that we are debating warrants our rights violations and ensures that people can exchange attention. ideas. All citizens must be allowed to discuss and debate issues, challenge their Governments and make informed I pay tribute to the hon. Member for Bishop Auckland decisions. (Helen Goodman) for her speech and for highlighting the threat faced by women journalists, which may sometimes Sadly, according to studies by both Freedom House be greater than that faced by males. I am grateful to my and the Economist Intelligence Unit, we are witnessing hon. Friend the Member for Carmarthen West and a decline in media freedoms around the world. That is South Pembrokeshire (Simon Hart) for his praise both affecting both print media, which in an increasing number for the Foreign Office—such praise does not always of countries are coming under state control or heavy flow as freely during debates as we might wish—and for state influence, and the internet, where there has been the Under-Secretary, my hon. Friend the Member for an increase in blocking and censorship. Many Governments North East Bedfordshire (Alistair Burt). I shall pass the do not wish to be accountable to their people and want expression of gratitude on to him. to remove all checks on their power. I am also grateful to the hon. Member for Hayes and As my right hon. Friend the Member for Bath has set Harlington (John McDonnell) for his speech today, and out comprehensively, that means that in many parts of for the consistent and manifestly sincere interest he the world the work of journalists, bloggers and others is takes in the subject, and to the Labour spokesperson, obstructed. They are harassed, monitored, detained the hon. Member for Bristol East (Kerry McCarthy), and, on occasion, subjected to violence. Some have paid for her contribution. To answer her question, I was in the highest price—we have discussed some such cases Colombia on Wednesday and Thursday last week, and today. According to the latest figures from Reporters although there were considerable discussions about trade Without Borders, 11 journalists have been killed so and commercial opportunities and about political and far this year in connection with their work. In 2011, diplomatic relations between Colombia and Britain, 66 journalists were killed and 71 were kidnapped, while there was also a focus in my programme on human 199 bloggers and netizens were arrested and 62 physically rights issues in the broadest sense, including threats to attacked. Although such occurrences may not be the journalists and trade unionists, and the action that the norm, they are not quite the exception either. For many Colombian Government and others were taking to deal years—the hon. Member for Hayes and Harlington with those threats. It was a broad-ranging visit, which referred to this—journalists have faced problems that, concentrated very much on that issue. while they may or may not be isolated incidents, add up I should say at the outset that the Government are to a consistent pattern of threats to them. deeply concerned about the safety of journalists; we It is vital that the international community continues strongly condemn their harassment and intimidation, to speak out in support of press freedom and the and of course the assassinations that take place in some protection of journalists. The UK is supportive of the 241WH Safety of Journalists Abroad21 MARCH 2012 Safety of Journalists Abroad 242WH work of UNESCO and looks forward to a positive or detained without explanation. In Azerbaijan, support outcome from its meeting in Paris on the safety of from the UK and others resulted in the release and journalists. We fully support the aim to strengthen the pardon of blogger Mr Fatullayev on 26 May. In July mandate and working methods of UNESCO and other 2011, we condemned attacks in Belarus, where more United Nations bodies to tackle violence against journalists than a dozen journalists were detained, beaten and their and the high levels of impunity. We welcome initiatives equipment broken during peaceful protests. that encourage UN agencies and special rapporteurs to We also frequently raise our significant concerns work closer together and, as my right hon. Friend the about the fate of journalists in Iran. A 2011 report by Member for Bath has proposed, we are already pressing the Committee to Protect Journalists showed that, once UNESCO to be more transparent and speed up the again, Iran has more journalists in jail than any other publication of its information on the killing of journalists. country in the world. The arrest of six journalists in We also support the proposals to raise greater awareness September and October who were accused of working of the issue and to encourage states to fulfil their for the BBC and of espionage was particularly troubling. commitments on media freedoms. We believe that concerted, All have now been released, but too many others remain co-ordinated action is vital. Later, I will talk about in prison. countries that are of particular concern to us—another issue raised by the hon. Member for Hayes and My right hon. Friend talked about events in East Harlington—but severe abuses take place in many countries. Timor and Syria. I share the concerns about the two My right hon. Friend the Member for Bath is right to British journalists, Brian Peters and Malcolm Rennie, say that the UK is not currently funding the work of the and the other journalists killed in East Timor in 1975. international programme for the development of The UK Government firmly believe that those responsible communication. I do not wish to sound like I am for their deaths should be held to account. Following passing the ball within Government, but that decision publication of the Australian coroner’s report, the was taken by the Department for International authorities there took the decision to review the evidence Development, although the Government may revisit it and consider the conclusions of previous investigations in due course. I assure my right hon. Friend that we are into the case. For legal and investigative reasons, they providing, and will continue to provide, assistance to are unable to provide specific details of their work, journalists working in difficult environments. We are which is ongoing. I fully appreciate the frustrations with doing so via support for specific projects, such as an the pace of progress, but the FCO continues to act as an ongoing one in Mexico with Article 19 as part of our intermediary between the British families involved and human rights and democracy programme fund, and the Australian authorities, and will do so for as long as other mechanisms, such as the Lifeline fund for embattled necessary. non-governmental organisations, which provides emergency assistance to journalists working in support of human Mr Foster: I know that the Minister has to read what rights. his brief says, but will he tell us whether he seriously In times of armed conflict, states bear the primary believes it is acceptable for five years to elapse since the responsibility to respect, protect and meet the needs of conclusion of the coroner’s work before the Government civilians. We encourage all states to respect the Geneva decide whether they are going to bring about a war conventions affirming that journalists are civilians under crimes proceeding on behalf of two of their citizens international humanitarian law. We fully support UN who were murdered in East Timor by the Indonesians? Security Council resolution 1738, passed in 2006, which makes it clear that deliberate attacks on journalists, Mr Browne: I appreciate the passion with which my media professionals and associated personnel who are right hon. Friend brings us again to that case. Let me reporting on armed conflicts and are not directly undertake to go away and look at the matter in greater participating in hostilities are unacceptable. detail, because I have not only responsibility for human At the 31st international conference of the Red Cross rights policy in the generality, but geographic responsibility and Red Crescent in Geneva in December 2011, we for that part of the world. I give a personal undertaking made three further pledges on the protection of journalists, to him that I will consider what more can be done to namely: integrating specific components on the protection assist the families of the journalists concerned. There of journalists into the training of our armed forces; are practical constraints on the British Government, providing journalists embedded with our armed forces often bigger than the public or even sometimes Members with security training; and ensuring that national criminal of Parliament fully appreciate, and obviously we are not law makes it possible to prosecute those who commit operating within our own jurisdiction. Nevertheless, we serious violations against journalists. We will report will do what we can. I will let my right hon. Friend back on our progress to the 32nd international conference know what more, if anything, we can do in that case. in 2015. The other country I wanted to mention before I As highlighted by the Foreign and Commonwealth concluded is Syria, where terrible atrocities continue to Office’s annual human rights reports, our missions around be committed. The UK sees it as vital that evidence of the world continue to raise freedom of expression issues those atrocities is systematically gathered, documented in countries of concern. That will be reflected in the and securely stored. What form of accountability or latest human rights report, to be published in a few justice processes should take will be for the Syrian weeks’ time. We consistently raise individual cases of people to decide. That will be an essential means of attacks against journalists and call for prompt and full reconciling communities in Syria following the trauma investigations into them. We stated publicly our concerns that is being inflicted on them both by the regime and, about the treatment of foreign journalists in China in some cases, by those on the ground who oppose when, in February 2011, several were physically intimidated the regime. We want to make sure that comprehensive 243WH Safety of Journalists Abroad 21 MARCH 2012 244WH

[Mr Jeremy Browne] Litigation Friends justice is done in Syria, which requires that information is gathered according to an international evidential 3.59 pm standard suitable for local and international courts. John Hemming (Birmingham, Yardley) (LD): I thank Let me make our central purpose clear: all those who Mr Speaker for allowing this debate. commit human rights violations or abuses in Syria If somebody is in an accident and ends up in a coma, should and must be held accountable for their actions. they need a litigation friend to instruct a solicitor to sue We commend the work being done by local organisations, for damages. A litigation friend, or next friend, is very the UN independent commission of inquiry on Syria, different from a Mackenzie friend. A litigation friend Amnesty International and others to document what is makes decisions for the person who does not have happening in Syria. The UK is also directly helping to capacity. If somebody is not in a coma, there is a document those atrocities. After despatching a scoping question of what threshold is required before appointing mission to the region in February, the UK sent a further such a litigation friend or guardian. Thomas Hammarberg, mission between 27 February and 12 March to gather the Council of Europe’s commissioner for human rights, evidence on human rights violations and abuses committed recently stated: in Syria. The work undertaken by the mission is necessarily a snapshot, but it has had harrowing accounts of President “Persons with intellectual and psycho-social disabilities are today routinely placed under a guardianship regime in several Assad’s brutal efforts to hold on to power. No one who European countries—they are deprived of their ‘legal capacity’. is responsible can act with impunity or believe that the In the eyes of the law they are seen as non-persons and their world will not find out who they are. Justice has a long decisions have no legal relevance. This policy violates agreed memory and a long reach. In this case, as in others, human rights standards.” there will be a process of accountability. He refers to the UN convention on the rights of persons Once again, I thank my right hon. Friend and others with disabilities of 2006. for giving me the opportunity not only to address In England and Wales, the situation is materially topical issues of concern, such as the situation in Syria, worse, primarily because secrecy of the judicial system but to talk about individual cases more generally and to has allowed widespread malpractice to develop, as revealed address the wider concerns in the House about the last week by Professor Jane Ireland’s report on psychological safety in which journalists do—or, in some cases, do expert reports. A good example of that is Rachel Pullen’s not—operate around the world. case, which is currently grinding through the Strasbourg I reiterate that the Government believe that journalists court. Her daughter was removed and adopted, although must be allowed to express themselves freely and safely there were no hearings at which any of the evidence was within international standards. We strongly condemn challenged, because the psychologist appointed to assess their harassment, intimidation and assassination. The her deemed her too stupid to instruct a solicitor. That role of media professionals remains vital in providing was clearly not true, as was determined by a later citizens with reliable and accurate information. That psychological report. However, it was too late. The role must be protected. The UK is one of the world’s psychologist said she was incapable of instructing a greatest and longest standing democracies, and it transmits solicitor. The Official Solicitor came in as her litigation around the world our values of freedom of expression friend and conceded the case against her on paper and and of the importance of people being able to exercise there was no hearing. At her appeal, I made two important free and informed choices. It is therefore right that we points for which the court criticised me. should continue to be at the forefront of setting the My first point was that the system allows the local highest standards and of insisting that others should authority to veto the appointment of an expert, thus meet those standards to the benefit of people around making the expert financially beholden to the local the world. authority. Professor Ireland’s report revealed that the overwhelming majority of experts in the family courts 3.44 pm made most, if not all, their income from writing expert Sitting suspended. reports. Parents only instruct an expert once, but the local authority does so continually. That creates a complacent environment in which experts frequently write the report the local authority would wish to see—well, those experts who drive Ferraris, Porsches and Formula 1 motor cars do anyway. My second point referred to a letter from the Official Solicitor to Rosleys solicitors. I expressed the view that the letter was created at a later stage and inserted in the file. It was obvious from the letter that whoever did that did not have access to Rosleys office, as there was no received stamp on it, no headed paper was used for its purported sending out, its address format was unusual and the date of receipt and purported posting out was impossible. The court decided that my mentioning those facts was not providing evidence and was critical of my claim. I stand by my claim, and I believe that what I have just said is indeed evidence of forgery. Real problems remain with the appointment of litigation 245WH Litigation Friends21 MARCH 2012 Litigation Friends 246WH friends. The Rosleys letter was supposed to explain to she does not have the mental capacity to decide where someone that the Official Solicitor had been appointed she lives. I have seen the expert reports, and they look as as their litigation friend, which is why the letter was so unreliable as many of the other reports referred to. important. Husan Pari has now left the country to get away from Given the secrecy of the system, people are not the system that made her a non-person. The psychologist generally aware of how the process works. Lee Gilliland, who interviewed her through an interpreter said that for example, was evicted without notice because he had she was a non-person. A psychologist who later interviewed the Official Solicitor appointed to defend his probate her in her own language was clear that she did have case. The Official Solicitor did not warn him that he was mental capacity. due to be evicted. The Official Solicitor was appointed The Official Solicitor’s office is an unaccountable on the say-so of his general practitioner, Dr Hoyte, who place. He has told me that he is not accountable to said: Parliament on the basis of individual cases. Furthermore, “He has grievances and fixed ideation about many official he is not subject to the Freedom of Information Act, or bodies.” at least not within this area, but he is subject to it in I find it odd that that is relevant to his having legal other areas of his activity. Instead, the Official Solicitor capacity. In my view, the fact that someone has a is accountable to individual secret court hearings. That grievance about an official body does not warrant their really is not good enough. There must be some being turned into a non-person and prevented from accountability beyond a few people in suits who have a making decisions. common interest in concealing malpractice. Hon. Members The big problem for anyone for whom the Official need to read Professor Ireland’s report to find out about Solicitor has been appointed is finding any way to that. challenge such a decision. Most firms of solicitors An interesting additional function of the Official simply refuse to act for someone without litigation Solicitor is to deal with people imprisoned for contempt capacity. The civil procedure rules do not really allow of court. Deborah Paul is currently serving a one-year people to challenge the appointment of a litigation sentence in Holloway prison for contempt of court, as friend. CPR rule 21.9 states: part of a private family law case that has turned public. “(2) Where a protected party regains or acquires capacity to The civil procedure rules strictly forbid people being conduct the proceedings, the litigation friend’s appointment continues imprisoned in secret. However, it was revealed in until it is ended by court order.” Hammerton v. Hammerton that people are imprisoned The assumption is that litigation friends cannot be with reporting restrictions. I wonder who is protecting wrongly appointed. In Professor Ireland’s review of Deborah Paul’s rights. When I wrote to the Official 126 court bundles, she found that two thirds of the Solicitor about his duty to protect the interests of reports were “poor” or “very poor”—84 cases where, if contemnors, he gave me no confidence that he was the judge relied upon the report, really the decision doing anything. The recent striking off of Dr Ruth should be quashed. That raises questions. Coppard and the attempt by Dr George Hibbert to England and Wales do not have the facility for a remove himself from the General Medical Council proper review of expert evidence. We do not have the practising register should really ring alarm bells. Daubert process that is used in the USA. Any solicitor Our family legal system is founded on expert opinion. appointed to act on behalf of a protected party is in However, these foundations appear to be more like danger of being subject to a conflict of interest. Let me quicksand. The secrecy in family court hearings has mention the case of Anthony Neil Barker, whose website allowed a culture of complacency to develop. Although is www.neebert.net. He has written me long, detailed procedures such as a modified Daubert procedure would e-mails about how he has regained his capacity, but enable improvements, secrecy creates a culture that cannot escape from the Court of Protection. I have tolerates malpractice. Secrecy in family court hearings some difficulty understanding how that can happen, has led to broader unaccountability in the appointment but when it involves large sums of money, it is not of litigation friends and their management of decision surprising. It is in the solicitor’s interest to keep him as a making. non-person, as the solicitor can then charge him for things. I was quite surprised when Professor Ireland’s excellent report on the quality of psychological expert opinion was produced, not because I did not know that this was Mrs Anne Main (in the Chair): Order. Is the hon. happening, but because the report was part-funded by Gentleman talking about a case that is no longer active the Family Justice Council. However, I was not surprised in the UK courts? that, although the report was ready for release in September 2011, it was released six months later. There are people John Hemming: In this case, there may be activity, but who would like to sweep the contents of the report I am referring to things that have happened in the past. under the carpet. I discussed the matter previously with the Clerk, and I am being careful not to refer to any decisions that are I will not quote a lot from the report. Anyone who is coming before the court. really interested in justice in our secret courts should simply read it. Mrs Anne Main (in the Chair): I thank the hon. Professor Ireland and Professor John Beaumont, who Gentleman. is from the same university, have produced proposals for a modified Daubert procedure, but that is only a John Hemming: Noreen Akhtar is a constituent of partial solution. Secret courts are unreliable courts. mine, whom I have been refused permission to meet. What is needed is less secrecy. Anonymous reports by She is a secret prisoner. Experts have determined that parties to proceedings should not be subject to any 247WH Litigation Friends21 MARCH 2012 Litigation Friends 248WH

[John Hemming] often quite bright go around phoning up firms of solicitors and saying, “Oh, the Official Solicitor is acting constraints. There must be a facility, potentially via the for me,” and the firms reply, “Well, we can’t deal with Information Commissioner, to produce fully public reports. you.” Even then, there is still the matter of legal aid. Justice is important, and it is clear that the system is I tend to get involved because people must be aware very unreliable. It is also clear that Parliament needs to of my concerns about how the litigation friend system resuscitate its powers of investigating individual cases. operates and come to me. I have talked to other hon. It is too easy for authorities to refuse to provide information. Members who have encountered difficult situations as In the Goder case, where a litigation friend was appointed well, but people often get excited about the being made and the daughter, Yvonne Goder, was imprisoned, probably into a non-person thing. I do not blame them for that, in secret, there is an allegation that the money from but they get quite angry, and when they present themselves three houses was stolen. Even taking the issue through to other hon. Members, they do so in quite an angry to the legal ombudsman has not identified what happened state, yet that is in part because the system is simply not to the money. Tracking payments is quite easy and responding to them. As described by Thomas Hammarberg, accounts can be provided. However, if a case gets to the they are treated as non-persons and their decisions have legal ombudsman without accounts, I am worried about no legal force. whether the regulatory system is working properly. I have spent some time studying the historical records The question always is, quis custodiet ipsos custodes? of Parliament, which are interesting and available in the In this case, who is regulating the regulators? The Library. What Parliament used to do more readily, answer has to be Parliament. Parliament needs to establish because people came with casework or whatever, was to a small inquiries committee to find answers where none establish small committees of inquiry into issues that are forthcoming. Where litigation friends are appointed might have developed because they got stuck and could in secret hearings based upon expert evidence that is go no further. Parliament needs to have a willingness to known to be systemically unreliable in three courts and establish a committee of inquiry just to find out the about which there is no other systemic research, it is facts. The House of Commons may be a court, but, very difficult to find out what is happening in a very constitutionally, it would be wrong to revert to taking murky system. We know that large sums of money are decisions that have legal force on individual cases. What being paid, but we are unsure what for and whether that about investigation, however, and that question of who is in the interests of those people for whom the money is is regulating the regulators? How do we manage the held. process when a regulatory system goes wrong? In a There is always a question about who is appointed as limited number of cases—we would not want to overwhelm a litigation friend. The Official Solicitor is supposed to ourselves with work—Parliament has the power to find be a last resort, but seems to me to be the first choice in out what is going on. many instances. I tried to use judicial review through a To take the case of the three houses, there is clear limited company to find out what was happening with evidence of some sort of fraud, and finding out what one secret prisoner—Matthew Hawkesworth—but got fraud has occurred is critical. One difficulty, as in the nowhere, and the court decided to punish me for the recent Asian royal family case, is that sometimes the effrontery of challenging the system by awarding costs regulators or the police will steer clear of an issue. against me personally, as well as against the limited Interestingly, in that case, which relates to the funding company. That is one reason why judicial review is an of al-Qaeda, the Australian police are willing to investigate, insufficient remedy for a quite significant, wide-ranging whereas I am told that the UK police are not. I do not problem. have that in writing, but I shall pursue it with the Some solutions to the problem therefore rest with Government if I do so. Parliament, rather than with the Government, but they I leave the Minister a reasonable amount of time to do need to review the situation. I have always spoken respond. Some serious issues are going on and have about how our judicial system is not compliant with the been for some time. With Professor Ireland’s report and European Union standards as applied to Croatia, and I the recent regulatory action in respect of Dr Ruth will not repeat that in my speech. The Government Coppard and Dr George Hibbert, it is becoming more must take such things seriously. obvious that the problem is serious. I am interested in I have rattled through my speech reasonably quickly. what the Government have to say. The Minister is well aware of my concerns, because I have been concerned about this matter for a long time. 4.12 pm One great difficulty in respect of how our constitution operates is that we have developed an approach whereby The Parliamentary Under-Secretary of State for Justice Parliament is regarded primarily as a body holding the (Mr Jonathan Djanogly): I congratulate my hon. Friend Executive to account, but the courts—the judicial estate the Member for Birmingham, Yardley (John Hemming) of the constitution—are held to account also through on securing this Adjournment debate today on a subject public consideration of their decision making, which in which I know he has significant experience and then influences Parliament. Parliament then makes decisions interest. He mentioned a number of live cases, which he and guides what happens if any rules need to be changed, must appreciate I am restricted in discussing, but he and they clearly need to be changed in a number of also discussed a wide variety of interrelated and serious situations. topics, which I shall do my best to address. One of the reasons why I have ended up helping to I acknowledge that the family courts and the Court get rid of the Official Solicitor, as people might put it, of Protection deal with some of the most difficult or to remove their litigation friend is that it is almost questions affecting the lives of individuals and families, impossible to find a way of doing so. People who are their rights and capacity to make decisions about their 249WH Litigation Friends21 MARCH 2012 Litigation Friends 250WH own future, as well as decisions about who is best able to about major life-changing events such as whether the take care of children and to provide them with a loving person should move into a care home or undergo a and caring home environment. The courts take such major surgical operation. Certain decisions, specified in matters seriously, and rightly so. They are sensitive and the Act, can never be made on behalf of a person who personal matters and there is a difficult balance to be lacks capacity to make those specific decisions, either struck between respect for an individual’s privacy, in because they are so personal to the individual concerned, particular that of children and other vulnerable people, or because they are governed by other legislation. Such and promoting openness to support public confidence decisions concern family relationships, such as consenting in the court system. to marriage or a civil partnership, consenting to have sexual relations, treatment under the Mental Heath Act On litigation friends or guardianship, my hon. Friend or decisions on voting in an election or referendum. has written to me on several occasions regarding the effectiveness of the Mental Capacity Act 2005—he has The capacity to litigate is based on a common law test doubts about the effectiveness of the Act and how it is of capacity set down by the courts. My hon. Friend is used. The Act is, however, widely supported by stakeholders aware of the Masterman-Lister case which makes it for the empowerment it gives to individuals. He referred clear that the presumption is that all adults are competent to an article by the Council of Europe Commissioner to manage their property and affairs; it is for the person for Human Rights—I thank him for sending it to me alleging incapacity to displace that presumption and to before the debate—on persons with intellectual and prove incapacity, not for an adult to prove his own psycho-social disabilities under guardianship being deprived capacity; and it is a fundamental right of a person to of their legal capacity in several European countries. In conduct proceedings. That presumption is not removed the article, the commissioner calls on European lightly. The assessment of litigation capacity is a matter Governments to review their legislation on legal capacity for the court in the individual case to decide and—this and urges recognition that supported decision-making is important—not for an expert giving evidence on alternatives should be developed for those who want capacity. I confirm to my hon. Friend that the legislation assistance in making choices or communicating them to in force in England and Wales supports individuals to others. make their own decisions, as called for in the commissioner’s article. As my hon. Friend is aware, the Mental Capacity Act My hon. Friend also questioned how litigation friends provides a statutory framework to empower and protect are appointed. The appointment of a litigation friend is people aged 16 and over who lack or might lack capacity governed by procedural court rules. The duty of a to make certain decisions for themselves because of litigation friend is set out in rules and associated practice illness, a learning disability or mental health problems. directions. The courts would not wish people to be Implemented in October 2007, the Act encompasses deprived of their autonomy or prevented from conducting five main principles. First, there is a presumption of their own proceedings in the absence of cogent evidence capacity—that all adults have the right to make their that they lack the mental capacity to do so. own decisions and must be assumed to have capacity to do so unless it is proved otherwise, and that capacity is John Hemming: My intervention might be reasonably presumed to be ongoing until there is evidence to the long, to deal with some of the Minister’s points. I contrary. Secondly, it sets out the right of individuals to accept that the Government do not comment on individual be supported to make their own decisions—that all cases at all, not only on individual live cases. I accept reasonable help and support should be provided to help the Minister’s argument that to some extent the Mental individuals to make their own decisions and, if necessary, Capacity Act is compliant with the UN convention of to communicate those decisions, before it can be assumed 2006 and that movement has been in the right direction, that they have lost capacity. Thirdly, the Act provides if not as far as one might hope. My argument is that the that it should not be assumed that people lack capacity system itself has no real accountability or any proper simply because their decisions might seem unwise or checks and balances. The court makes the decision, but eccentric. Fourthly, if people lack capacity, anything it is based on opinion from a social worker or expert, done on their behalf must be done in their best interests, and there is no real opportunity to check that process. and the Act provides a checklist of factors that all decision makers must work though when deciding what Mr Djanogly: I have addressed the position of the is in the best interests of the incapacitated person. courts, which are independent of the Government. I Finally, if people lack capacity, before a decision is will come to the question of experts later. made on their behalf, all alternatives must be considered My hon. Friend also queried the role of the Official and the option chosen should be the least restrictive of Solicitor as a litigation friend. The Official Solicitor is their basic rights and freedoms. an independent office holder of the senior courts whose The Act is intended to assist and support people who duties include acting as a last-resort litigation friend to might lack capacity and to discourage anyone who is those who lack the capacity to conduct their own litigation. involved in caring for someone who lacks capacity from He is not accountable to Ministers or to the Ministry of being overly restrictive or controlling. It also aims to Justice for his decisions in individual cases, nor are balance individuals’ right to make decisions for themselves Ministers or the Ministry responsible for those decisions. with their right to be protected from harm if they lack The Official Solicitor will conduct the litigation on capacity to make decisions to protect themselves. The behalf of the person for whom he is acting as litigation Act covers a wide range of decisions made or actions friend fairly, competently and in their best interests. taken on behalf of people who might lack capacity to make specific decisions for themselves. Those decisions John Hemming: I asked the Minister a question about can be about day-to-day matters such as what to wear the Official Solicitor, who I accept is supposed to be the or what to buy when doing the weekly shopping, or litigation friend of last resort. My point is that he 251WH Litigation Friends21 MARCH 2012 Litigation Friends 252WH

[John Hemming] We appreciate that the six-month limit will not be achieved without fundamental changes to the way the is often the litigation friend of first resort. The most system works. One aspect of the reform is to the way in important question is: how do we know that the Official which expert witness evidence is used in the family Solicitor is doing his job properly? courts. The evidence suggests that in public law family proceedings, expert witness evidence is used in about Mr Djanogly: That question could be asked of any 90% of cases, and on average, nearly four reports per lawyer who has a relationship with his client. case are requested. That high number of reports may well reflect an understandable desire for certainty and John Hemming: The Official Solicitor may be legally for as thorough a process as possible to be gone through qualified, but his role is not that of a lawyer: his role is before life-changing decisions are made. As the family to make decisions and to instruct lawyers. Normally, justice review acknowledged, expert witness evidence the Official Solicitor instructs another firm to act. The can often be necessary to ensure a fair and complete question is: how do we know that the Official Solicitor court process—for example, to establish whether a child is doing his job properly? has been harmed by accident or not. Nevertheless, we agree that too many reports are commissioned that add Mr Djanogly: The Official Solicitor is an independent little value to the court’s understanding of the issues appointment, and my hon. Friend could ask the same and add further delays to the process. We have already question about a judge, for example. How do we know announced our intention to legislate to ensure that that a judge is doing his job properly? reports are commissioned only when they are necessary to resolve the case. John Hemming: It obviously comes back to the question In family proceedings involving children, the court of secrecy and monitoring of the legal system. If there must decide whether to permit an expert witness to be is transparency, one can have some comfort that people instructed, or to allow expert witness evidence to be are doing their job properly. I see many examples of used in court. Expert witnesses have an overriding duty people apparently not doing their job properly. to the court that takes precedence over any obligation to the party or parties who have instructed them. They Mr Djanogly: I will come back to my hon. Friend in are under a duty to assist the court with objective and more detail, but I have to get through quite lot of his independent advice and to provide advice that conforms other points in the remaining three minutes— to the best practice of their profession. My hon. Friend mentioned recent research and cases reported in the John Hemming: The Minister has more than three press showing that there is a problem with expert witnesses minutes; he has nine minutes. in the family courts. My hon. Friend referred to practice in the United Mr Djanogly: Five minutes perhaps. States, and I would be interested to see data on the I turn now to the family justice review and expert systems uses there, but we do not agree that a review is witnesses in the family courts. In their recent response necessary. The family justice review has already conducted to that review, the Government set out plans to implement a thorough analysis of the problems in the family a comprehensive programme of reform of the family justice system, and the Government have made a justice system. We are grateful for the impressive work commitment to significant reform. We will consider undertaken by David Norgrove and his fellow panel carefully the findings of the recent research on psychological members in diagnosing the problems of the current expert witness reports. We accept the need for reform of system and setting out clear recommendations to remedy the use of experts in family proceedings and for more them. research following the study. The review was clear about the need to create a more coherent system, characterised by trust and co-ordination John Hemming: I do not think that the family justice between the different courts and agencies involved. As review managed to identify the real problems in the the first step towards that, we are establishing a Family system. It was flawed from the start inasmuch as the Justice Board to provide greater leadership and panel members were generally people who worked within co-ordination across delivery agencies nationally and the system, instead of people who have had experience locally, and to prepare the system for the changes to of it and are critical of it. I do not agree with the come. In private law, we are determined to put in place a Government’s conclusions or those of the family justice framework that will support separating couples to resolve review. their disputes more reasonably and more quickly.Whenever possible, there should not be a need to resort to litigation Mr Djanogly: I hear what my hon. Friend says, but in court. the family justice review has been well received widely In public law, when the state intervenes to take children and across all sections and stakeholders, and that is the into care, our overriding priority is significantly to basis on which the Government are proceeding. reduce the current unacceptable levels of delay. The My hon. Friend mentioned Professor Jane Ireland’s average care case now takes 55 weeks, and many take recently published research on psychological expert witness much longer. That means months of uncertainty for a reports used in family public law proceedings, and I child trapped in a difficult situation. That must not agree that it is a useful contribution to our understanding. continue. We intend to legislate as soon as parliamentary As Professor Ireland points out in her report, it is the time allows for a six-month time limit on care and first study of its kind and is based on only a small supervision proceedings. That will send a powerful message sample of family cases. While it is indicative of weaknesses that the current level of delay is unacceptable. in the practices of some psychologist expert witnesses, it 253WH Litigation Friends 21 MARCH 2012 254WH is not possible to determine from this preliminary study Mobility Scooter Safety whether the findings are representative. Nevertheless, the Government accept that there is a need for further research in this area, including on the quality of expert 4.29 pm witness reports, to further our understanding of the issues identified by Professor Ireland and the family Alison Seabeck (Plymouth, Moor View) (Lab): It is justice review. good to serve under your chairmanship for the first We also agree that there is a need to improve the time, Mrs Main. Given that this is, I trust, a non-contentious quality of expert reports. We intend to work with the issue, I hope that you will not be called to action. relevant bodies, including the Legal Services Commission, Like many hon. Members, I have heard complaints expert witnesses, health sector bodies and local authorities, and concerns about the design and safety of mobility to develop quality standards. Others in the system also scooters on the road, and the risks posed to those who have a role to play: they include legal sector professional use them and to other road users. Only yesterday, the bodies providing support and guidance to lawyers who hon. Member for Cannock Chase (Mr Burley) proposed are responsible for commissioning expert witnesses; a ten-minute rule Bill to update and clarify the Road those responsible for maintaining ethical and quality Traffic Act 1988 on the use of powered wheelchairs, and standards within the medical profession: and expert his speech in the main Chamber also touched on mobility witness representative bodies. Each has an important scooters. contribution to make to ensure that expert witnesses I secured this debate after being contacted by one of undertaking this vital work for the courts have the right my constituents about the design failing of his scooter, training, skills and knowledge. and following a meeting that I held with a Plymouth-based My hon. Friend discussed openness in family courts, organisation called Scoot-A-Long. Both meetings forcefully and there are often calls for greater openness. It is of flagged up significant failings in the system that cut course vital that the family justice system commands across a number of Departments. I therefore tabled public confidence and that justice is not only done, but questions and written letters to the Departments of is seen to be done. At the same time, there is a clear need Health and for Transport, but the responses have not to balance the desire to be more open with ensuring that satisfied me or my constituents. the privacy of vulnerable children and families involved in these cases is protected. I would like to mention Mr Brian Fleming and describe his experiences, which have angered and frustrated him. John Hemming: Does the Minister accept that there He has been frustrated because, despite every attempt are people like me who perceive that justice is often not to highlight the problems, no one appears to be listening done? and he worries, as do I, that at some point a fatality will occur. He has been dedicated to raising awareness about Mr Djanogly: I cannot argue against my hon. Friend’s the safety of these vehicles, and he has tried to interest position. He goes to courts and sees cases, and he takes programmes such as “Panorama” in his story. a view. It is not an easy balance to strike. The debate on Let us start at the beginning. What do we know about this issue has been long running and is controversial. It accidents involving mobility scooters? The answer is has been subject to two public consultations, but little virtually nothing, and the full recording of incidents on consensus of opinion has resulted. The Government the road that involve mobility scooters is unlikely to have accepted the concerns expressed by the Select start before 2013. We are also not sure how and where Committee on Justice in its inquiry into the operation off-road incidents take place, and whether they are ever of the family courts and agreed that we should not likely to be recorded. commence the provisions in part 2 of the Children, Recently, there was the tragic death at Bodmin in Schools and Families Act 2010. We are still looking at Cornwall of an elderly gentleman, Mr Moore, whose ways in which the family courts can release more scooter flipped over on a steep slope. Because of the information. In doing this, we will take into account the interest generated by this debate, Thompsons solicitors findings from the final report into the family courts contacted me to provide a couple more examples of information pilot, which was published in September incidents that were linked to mobility scooters or motorised 2011. wheelchairs, which are known legally as invalidity I emphasise that the Government firmly support the carriages—that definition probably ought to be updated. right of every adult to make their own decisions about A 79-year-old woman was left with serious injuries after their future whenever possible, and to be assisted to a van collided with her mobility scooter in Sunderland. make those decisions if necessary. We also support the One claimant was shopping in Newcastle, but as she need for greater transparency in the operation of the queued up a mobility scooter suddenly came towards courts. We accept that the current position in the family her, knocking her to the floor. She suffered serious courts is unsatisfactory and we are considering ways in damage—a broken hip—and still has difficulty walking. which more information can be released. We are committed Those are just a few examples, but we need to reduce the to radical reform of the family justice system to help to risk of such accidents and tragedies happening by increasing improve the lives of thousands of children and families. our knowledge of where and how they occur. What do we know about the safety standards applied to imported mobility scooters? Again, not a lot. The Department for Transport has not commissioned safety checks on any vehicle model, and the Medicines and Healthcare products Regulatory Agency—the MHRA— which, according to the Department, is responsible 255WH Mobility Scooter Safety21 MARCH 2012 Mobility Scooter Safety 256WH

[Alison Seabeck] can stop without warning. It passes basic requirements for use on the pavement, although not the road, yet it is for regulation in that area, does not commission safety being used by some on the roads. checks on mobility scooters before their placement in the market. One has to ask, why not? Mr Andrew Smith (Oxford East) (Lab): I warmly I find that astonishing. Would we allow a medicine to congratulate my hon. Friend on securing this important enter the market without it reaching a certain standard? debate about something that affects a growing number No, we would not. Would we allow a car to go on the of people in our society, either as scooter users or as road without it reaching a certain standard? No. Why, their fellow pedestrians and road users. Does she agree then, is a mobility scooter allowed to go anywhere that we need to set the discussion in the wider context of without a check, particularly when, on occasion, they ensuring that the design of pavements and lowered are used by people who have never driven a car, perhaps pavements takes account of the needs of scooter users, have no road awareness and who may be frail? We so that they are not left in dangerous situations or expect people who drive cars on the road to take a forced to cross the road? I have been to look at certain driving test, yet a significant number of people are locations in my constituency with users of mobility using a scooter on the roads with little or no road scooters. knowledge, other than as a pedestrian. I will return to that point. Alison Seabeck: My right hon. Friend is absolutely correct, and I will touch on the problems faced by local authorities. His comments reinforce concerns that I Jim Shannon (Strangford) (DUP): I congratulate the have heard from local authorities, as well as from users hon. Lady on securing the debate. There is an active of mobility scooters. group in my constituency that makes mobility scooters available, and it has noted the issues that she seeks to address. A lot of police forces have also tried to emphasise Jim Shannon: One point that I have been made aware the need for safety, and for people to have experience of concerns the advertising of mobility scooters. The and to take advice when using mobility scooters. Does adverts show an almost deluxe mobility scooter that she feel that the time for the police to give advice, as can go anywhere. I do not know whether the hon. Lady with The Highway Code, is long overdue and that has seen the adverts, but the scooters seem to be able to introducing registration will secure safety for everyone? go through muck and snow, and go anywhere, almost like a four-wheel-drive mobility scooter. Does she agree that adverts ought to show what is achievable? Alison Seabeck: The hon. Gentleman is entirely right. A lot of good work is being done by various police Alison Seabeck: I thank the hon. Gentleman for that authorities and other organisations to try to raise safety intervention. I think that between him and my right awareness. I will return to that point. hon. Friend the Member for Oxford East (Mr Smith), There is growing pressure to have a Minister with my speech has been covered. The hon. Gentleman’s responsibility for older people, and such a person might point is correct: the adverts suggest that some of these be responsible for drawing these issues together—putting vehicles are all-singing and all-dancing. Indeed, there them in one place—and considering whether we need to are individuals who soup up their scooters, for whatever regulate further, or indeed to legislate. The Parliamentary reason, but that is clearly a separate issue. Advisory Council for Transport Safety called for such a Many imported vehicles are not legal on our highways, post to be created, and there is no doubt that the safety yet that is where they are innocently being used by the of mobility vehicles was one reason behind that request. purchasers. In addition, there is no requirement for Let me return to Mr Fleming. He is getting on in insurance. I would welcome the Minister’s view on why years—I will not say how old he is—but he has had a that is. Is it because of the cost factor? How many distinguished career. He has a degree of engineering vehicles have been prevented from reaching the market knowledge, and he therefore speaks with some authority because of design flaws or other concerns? What powers on the workings of his scooter. He contacted me because do local trading standards officers have in such he has a Pride Colt 8, which, I understand, the MHRA circumstances, and are they being encouraged to use has received complaints about. Indeed, one Pride Colt 8 them? Mr Fleming feels that he has been going round in was involved in an accident in Staffordshire, and the circles locally, as one organisation passes responsibility investigating police officer got in touch with me. He to another. wanted to know what I knew about that vehicle, given The Pride Colt 8 has no width-indicating lights for the parliamentary questions that I had tabled. That night use and no brake lights, so right hon. and hon. cannot be right: police officers should not need to ring a Members will understand the obvious risks involved Member of Parliament who happens to have tabled should these scooters be taken on to the highway. Many some questions to seek out information on the background owners of the scooters say that they are forced to use and mechanical failings of a particular vehicle. Such the roads because local councils have not created a safe information should be available elsewhere. pavement environment for them. We heard from my The Pride Colt 8 owned by Mr Fleming had a series right hon. Friend the Member for Oxford East on of failings. Its electric autobrake failed, the head console exactly that point. Clearly, with council budgets being was affected by corrosion and there was a catastrophic cut, they are very unlikely to be able to commit significant failure of the drive, leading to the product being recalled— spending to this area, however desirable. need I go on? There is a long list of complaints, and a Scoot-A-Long supports disabled people to support frankly unsatisfactory response from the manufacturer. themselves in getting out and about to places such as The scooter does not appear to be fit for purpose and it Dartmoor and even taking scooters on to Dartmoor. 257WH Mobility Scooter Safety21 MARCH 2012 Mobility Scooter Safety 258WH

It also runs training courses and has expressed to me for purpose, and have been checked? That will require serious concerns about the lack of training available cross-departmental working. What action will be taken generally and about the quality of some scooters. I tried to ensure that records are kept of accidents? I suppose I one of them out, and I have to say that the top speed of am asking for a coherent, cross-departmental strategy, 8 mph is extremely fast. The limit on pavements is 4 across the Department for Business, Innovation and mph, but untrained people do not know that. John Skills, the DFT and the Department of Health, pulling Seamons, an excellent chap from Scoot-A-Long, expressed together all the safety issues to ensure that proper concerns to me about the way mobility scooters are sold guidance is always issued and that vehicles cannot be to the public. Some highly reputable companies will imported for sale in the UK without the designs being ensure that the scooter size is correct for the user and checked and being safe. that training is offered, but others are interested simply in a quick sale. Anecdotally, there are people who buy scooters and then are far too scared to use them. 4.45 pm Others adapt scooters in interesting ways. I heard The Parliamentary Under-Secretary of State for Transport yesterday from a person in Stevenage who had been out (Norman Baker): I thank the hon. Member for Plymouth, shopping when he suddenly heard “Land of Hope and Moor View (Alison Seabeck) for securing this debate on Glory” playing. He turned round to see a gentleman on an important matter that is of increasing interest to a mobility scooter who was having trouble reversing. many people—mobility vehicle safety. She referred to The gentleman on the scooter smiled at him and said, the ten-minute rule Bill proposed yesterday by my hon. “It’s all right. It helps me because it plays when I’ve Friend the Member for Cannock Chase (Mr Burley). reversed into something.” That is not really how it is She will have noticed that he was arguing that, because supposed to work. People need support and training. these vehicles are a lifeline for many people, we should Although that is an amusing story, it makes a serious deregulate to some degree to give them the mobility and point. independence that we would agree in principle they There are some excellent examples of organisations should have. She argues that they should be safe and attempting to ensure that good advice is given. Norfolk that we should take steps to ensure that people are constabulary—the police force—is one of many properly trained to use them; everyone would agree organisations trying to do good work. It is working with that in principle as well. That is the nub of the alongside Halfords and is one organisation whose advice, problem: both perspectives are valid, but they point in as part of its Safe Scoot campaign, is extremely thorough different directions. The Department for Transport is and easy to follow. It encourages safety awareness courses, trying to deal with that problem, which is quite complicated, but those are not compulsory. How many mobility but let me try to give the hon. Lady reassurance about scooter users have read The Highway Code? They might the steps we are taking to try to resolve it. have passed their driving test decades ago, when the Officially, the UK has more than 10 million disabled rules were slightly different. The Highway Code also people and our population is increasingly ageing, so applies to people who intend to use scooters on the mobility vehicles will in future have an even more pavements, but I imagine that very few scooter users important role to play in enabling disabled people to have gone to the trouble of reading it. How many users live independent lives. It is part of our policy, as it was understand the different issues raised by using a mobility the previous Government’s, to seek to improve access scooter in icy conditions or that wearing reflective and safety for all people, including disabled and older clothing is a good idea? How many users know that people, to help to enhance their quality of life. We they should not be in bus lanes? consider the issue of mobility scooters in that context. I know that the Minister is aware of the issues that I By the way, if the hon. Lady looks at my written am raising, but I hope he agrees that with an ageing ministerial statement of 1 March, she will see that I population action must be taken to ensure that standards indicated our intention to replace the legal term “invalid are maintained with regard to the safety of these vehicles carriage” as soon as possible. Unfortunately, it is in and that some basic training should be undertaken by primary legislation, so we will need a slot to deal with it, all users. It is also important that, if scooters are sold to but we fully accept that it is an inappropriate term in people who have never driven and they intend to use this day and age. them on the road, training is compulsory. I am not sure Our aim is to balance the mobility needs of disabled whether they should even be on the road if they have people with their safety and that of others. The previous not passed the driving test. Government consulted formally in 2010, and on 1 March We also need to be aware that younger, able-bodied this year I published the Government response to that people are buying mobility scooters. Recently, one was consultation. Let me take first the safety of particular seen cruising along the seafront at a Devon resort—the scooter models that are available to buy. young man driving it had his golf clubs on the back. We The position on design standards for mobility vehicles see young women who appear to be able-bodied when sold in the UK is that before a manufacturer can offer a they get on and off their scooters using them to do the vehicle for sale, it must meet EU manufacturing standards. shopping. A scooter may be an alternative to a small car To obtain that mark in the UK, a manufacturer must in some circumstances—a much cheaper alternative, first submit a technical file relating to the product to the because people do not have to pay all the additional Medicines and Healthcare products Regulatory Agency. road taxes and so on—but that could spiral out of On imports, there is nothing to stop someone buying a control if we do not get a grip on it. mobility scooter from another country over the internet What action can the Government take to close some without taking advice. If the vehicles do not conform to of the loopholes? What action will they take to ensure European standards, trading standards officers have the that the products that come to market are safe and fit authority to seize them, but I cannot imagine that that 259WH Mobility Scooter Safety21 MARCH 2012 Mobility Scooter Safety 260WH

[Norman Baker] has been involved in an accident on the public highway. Thus we will begin to gather more reputable and objective happens very often in practice. I think that many trading information than we have at the moment. standards officers, if they came across such a vehicle, would be very reluctant to seize someone’s lifeline—the I recognise the concerns, however, which is why, in my vehicle necessary for them to get from A to B. written ministerial statement of 1 March, I indicated that I do not intend to change the maximum permitted There are challenges, but the straight answer to the speed of mobility vehicles. I agree that 8 mph does not hon. Lady’s question is that someone can bypass the sound very fast, but it certainly is fast on one of those regulations if they buy on the internet, and trading scooters. I tried one out myself when I went to a scooter standards officers have the power to deal with that place in Rochford, and I was taken aback by its acceleration when they come across such vehicles. Part of the problem and speed—and I am someone who has been driving on is that vehicles are not always bought from reputable the roads for some 30 years. I was also rather taken dealers. They are often bought on the internet, or aback by the instability of the vehicle. I believe it is second hand, or by some other means where the control absolutely right not to increase their maximum speed. It mechanism is not in place. is possible that some vehicles might be bought on the internet, without the controls of reputable dealers in Alison Seabeck: There is a case for information to be this country, but the concerns about the reduced stability passed on by GPs—who may recommend a vehicle to a of vehicles at speed, and the more serious consequences patient—pensioners’ groups and Age Concern to ensure of any collision if higher speeds are permitted, are such that proper advice is going out to those who are considering that I will not be increasing the speed at which those buying mobility scooters. It is about information getting vehicles are permitted to travel. to people before they take the step of going to the internet or somewhere else to buy such a vehicle. I have also announced that there will be no change to the minimum age for using a class 3 vehicle. There Norman Baker: I agree that information is important, would be safety concerns if a child under 14 years were and I will come on to what we are doing, but it may not permitted to take a vehicle on to the public carriageway. be a complete panacea. However, I have to balance that judgment against the legitimate health and independence benefits that such a One of the main concerns about the carriage of vehicle can bring—these are difficult judgments to scooters on public transport is whether or not they can make—so I have decided to permit class 2 powered be safely secured. The design of the scooter may mean vehicles, which are restricted to the pavement, to weigh that it does not have appropriate anchorage points, so up to 150 kg unladen in order to help children with there is a danger that it may tip up and cause injury. more acute clinical needs to have more equipment on There are international standards to which manufacturers their chairs. For reasons of public safety, I have also can refer to determine how to secure wheelchairs and decided that the use of two-person mobility scooters their occupants when travelling in a vehicle, but there should not be allowed on the public highway. Two-person are no such standards for mobility scooters. That is one scooters are likely to be heavier than the maximum legal of the issues that I want operators and manufacturers weight limit—150 kg for class 3 vehicles. Some two-person to consider when it comes to improving the design of models also exceed the maximum speed limit of 8 mph. scooters for carriage on public transport. There are also concerns among public transport operators The consultation in 2010 considered whether the law that people are being sold scooters that are inappropriate is adequate or whether there should be a new means of for public transport and yet they have an expectation tackling misuse of these vehicles. I have concluded that that they can use them. There is a space designed for no new legislation is required—not even to make these wheelchairs and some scooters will necessarily be designed vehicles more conspicuous—but I have asked officials at a level above that, so transport operators can legitimately to examine how current legislation could be better say, “This vehicle is unsuitable for carriage on light rail, enforced. That does not mean that we are looking to tram, train or bus.” I want to ensure that we get some prosecute more mobility scooter users. The laws relating consistency of approach from operators and some clarity to mobility vehicles are not the same as road traffic laws for members of the public as to which vehicles can and that apply to motor vehicles, but there is legislation cannot be carried on public transport. If we end up dating from Victorian times that can be used to control with vehicles that are heavier and bigger and do what reckless driving and we want this to be more widely my hon. Friend the Member for Cannock Chase argued publicised and better understood. for yesterday, it will benefit users when they take them Issues remain around insurance, eyesight tests and on the road, but not when they want to take them on training, which brings us on to the question of what we public transport. These are very complicated issues to can do to help people who use these vehicles. There is get right. currently no mandatory requirement to insure vehicles, As the hon. Lady said, there are also safety concerns although we strongly recommend that individuals take about the use of mobility scooters. There are reports of out insurance voluntarily, or to have eyesight tests, people being injured by them when they are used on although my Department has for many years advised pavements, and of users being hit by other vehicles that people should be able to read a number plate at a when they are used on the road. Unfortunately, no distance of 40 feet. I want to look at how the test can be accident statistics are available to demonstrate that the made more practical so that there is much greater take use of mobility vehicles represents a major public safety up. I have concluded that mandatory eyesight testing is problem—the evidence is all anecdotal. However, I have not necessary for users of class 2 scooters, which are raised the matter, and from 2013 the police will be able restricted to the pavement, but I am clear that the to record—I hope they do—whether a mobility vehicle position in respect of class 3 scooters requires further 261WH Mobility Scooter Safety21 MARCH 2012 Mobility Scooter Safety 262WH consideration. I am talking about the vehicles that can Lady’s question about whether models have been stopped travel at 8 mph as opposed to 4 mph and that can be from being brought into the country, but I will raise the allowed on the highway. matter with MHRA. Cross-departmental work on the The consultation responses in 2010 emphasised real issue is under way. We have been in touch with the concerns that mandatory insurance and training could Department of Health, and if she was in the Chamber unfairly penalise a particularly vulnerable section of the yesterday, she will have seen that the Minister for Disabled community. However, we want to find ways to achieve People from the Department for Work and Pensions greater take-up of insurance and training, which is why was with me on the Treasury Bench to listen to the I have been talking to key stakeholders. I held a meeting ten-minute rule Bill. We are trying to work collaboratively only yesterday with the trade association, vehicle training across Departments. organisations, the insurance industry and disabled charities and organisations to review the available evidence and Alison Seabeck: I acknowledge the work that is going options relating to insurance and the use of specialist on with all the groups that the Minister has mentioned, training providers. My written statement on 1 March but use of these vehicles by people who are neither deliberately left open the questions of eyesight testing, elderly nor disabled is increasing, and that is very worrying. insurance and training because I wanted to take advice from everyone concerned, including users, disabled charities Norman Baker: That is a relatively new issue. I have and road safety people to try to get to a position that not yet come across anyone going to play golf in a everybody finds comfortable. It was a useful meeting, mobility scooter, although I have no doubt that it does and my officials have taken away the comments and will happen; nor have I come across scooters that play use them to take the next stage forward. As the hon. “Land of Hope and Glory”. I am sure that whoever Lady rightly said, it would be helpful if more training composed that particular tune did not have reversible was available. scooters in mind. None the less, I take the hon. Lady’s Norfolk constabulary was represented at the meeting word for it. If these scooters are now being used by yesterday. The hon. Lady mentioned that county, where groups for whom they are not designed, particularly if some really good work has been done—indeed I was in people are using them to avoid the requirements of road Norwich before coming to this debate. We can learn traffic legislation for other vehicles, that is a serious from Norfolk’s example. The trouble with Norfolk is matter that I will take away to consider. not that it is not doing the right thing—it is—but that I hope that I have managed to convince the hon. its practice is not emulated everywhere. We need to find Lady of two things: first, that we are seized of the need a way of rolling that practice out right across England to make progress and we are trying to do so in a and Wales—I hope that the hon. Member for Strangford constructive and consensual way; and secondly, that (Jim Shannon) will forgive me, but England and Wales this is not an easy issue. There are conflicting demands are my responsibility—to ensure that that training is on us from different directions. Coming up with an available more widely. That is one of the issues that we answer that meets everybody’s aspirations will be difficult, are trying to address sensibly for the future. but we will try. There are clearly issues about basic training and Question put and agreed to. about the safety of these vehicles, particularly ones that have slipped in under the net and do not meet European 4.59 pm Union standards. I am not able to answer the hon. Sitting adjourned.

57WS Written Ministerial Statements21 MARCH 2012 Written Ministerial Statements 58WS

rate of supplementary charge on oil and gas production Written Ministerial is now 32%. The Government also stated that, if the oil price falls below a set trigger price on a sustained basis, Statements we will reduce the supplementary charge back towards 20% on a one penny per litre in each such year. Wednesday 21 March 2012 The Government said at the time that it believed a trigger price of $75 per barrel would be appropriate, and that it would set a final level and mechanism after TREASURY seeking the views of oil and gas companies, and motoring groups. Following this period of informal consultation, Anti-Avoidance I can announce that the fair fuel stabiliser will be implemented with effect from 21 March 2012. The Exchequer Secretary to the Treasury (Mr David The trigger price will be set at £45 sterling (being the Gauke): The Chancellor of the Exchequer announced rounded sterling equivalent of $75 based on the latest today as part of the Budget the removal of the VAT OBR exchange rate forecast for 2012). The trigger price exemption for grants of facilities for the self storage of will be fixed in sterling, and reviewed every three years. goods and the removal of the VAT zero rate for supplies Whether the trigger price is met will be assessed annually of services and materials in connection with approved on the first working day of February, starting in 2013. alterations of protected buildings. This will have effect This assessment will be based on two FFS reference from 1 October 2012. For approved alterations that are prices: already contracted for or under way, transitional relief The average daily dollar oil price (per barrel) in the three will be provided for supplies made before 21 March months immediately prior to the date of assessment, converted 2013. to sterling using the average daily Bank of England exchange The Government have taken this step to address rate across the period. inconsistencies in the treatment of these supplies and to The average daily dollar oil price (per barrel) in the week prevent VAT avoidance that exploits the VAT exemption before the date of assessment, converted to sterling using the average daily Bank of England exchange rate across the for supplies of self storage. To protect the public finances period. from artificial avoidance of the change in VAT liability, Each FFS reference price will be calculated using the the Finance Bill 2012 will contain anti-forestalling legislation North sea average reference value as established in the to ensure that the VAT liability changes are fully effective. Oil Taxation (Market Value of Oil) Regulations 2005 Anti-forestalling legislation will apply to these types (SI2006\3313). of supplies made on or after 21 March 2012. This will ensure that the new VAT liability will apply to these Both reference prices are required to be met for the supplies if they are performed (or, in the case of supplies trigger price to be met. Thus, under the current tax of materials, incorporated in the building) on or after regime (i.e. with the supplementary charge at 32%), if at 1 October 2012, even if the supply is treated as being the assessment date either of the two FFS reference made earlier than this because of an advance payment prices is £45 or above, the trigger price has not been met or delivery of materials. The new VAT liability will also and supplementary charge will continue to be levied at apply to grants of rights or options made on or after 32%. If both reference prices are below £45, the trigger 21 March 2012 to receive supplies of self storage to be price is met. provided on or after 1 October 2012. If oil prices were at a level where the trigger price had Whilst the attached anti-forestalling legislation will previously been met and supplementary charge were apply for supplies treated as taking place on or after being levied at a lower rate, both the FFS reference 21 March 2012, any VAT arising from its operation will prices would need to rise to £45 or above for the trigger not become due until 1 October 2012. Until then, price to be met again. suppliers should continue to apply the current rules. Any changes to the rate of supplementary charge and Further information on the anti-forestalling legislation fuel duty that result from the trigger price being met will is available at: www.hmrc.gov.uk. be announced at Budget in the year in question.

Debt and Reserves Management Report COMMUNITIES AND LOCAL GOVERNMENT The Financial Secretary to the Treasury (Mr Mark Council Tax Hoban): The “Debt and Reserves Management Report 2012-13” is being published today. Copies are available in the Libraries of both Houses. The Parliamentary Under-Secretary of State for Communities and Local Government (Robert Neill): Today, my Department has published council tax figures for 2012-13 in England. It shows that thanks to the coalition Fuel Tax Policy Government’s council tax freeze initiative, the average change in band D bills will be just 0.3%—a significant The Economic Secretary to the Treasury (Miss Chloe real terms cut in council tax. The average band D bill Smith): At Budget 2011, as part of a package of measures will be £1,444 a year. to help motorists facing high petrol prices, the Government I am pleased to inform the House that the overwhelming announced a fair fuel stabiliser (FFS) that would be majority (358 of 421) of eligible local, fire and rescue funded by higher taxation of the profits from oil and and police authorities in England have decided to freeze gas companies when oil prices are high. As a result, the or reduce their band D council tax in 2012-13. The 59WS Written Ministerial Statements21 MARCH 2012 Written Ministerial Statements 60WS take-up rate was 90% among elected local councils. The Care Quality Commission (CQC) has now Participating local authorities will therefore be eligible completed their focused inspections of 150 services for to receive the additional grant offered by the Government people with learning disabilities. The reports from these for doing so. inspections are being published in batches, and a further Support for hard-working families and pensioners 19 reports are being published today. They can be found at: http://www.cqc.org.uk/LDReports?1atest—86 inspection This is good news for hard-working families and reports have been published so far. These reports have pensioners who previously experienced a doubling of found poor practice in some of the units and frequent council tax under the last Administration. This year, areas of concerns include limited person-centred care, over 20 authorities have also cut council tax between limited appropriate activities and a lack of monitoring 0.1% and 3.75%. Indeed, in London, all households will and learning from incidents of restraint. benefit from a cash terms cut in their bills. As compared with the typical capping threshold under Where CQC has identified concerns, the provider is the last Government of a 5%) council tax rise, a freeze required to inform CQC when its improvement actions saves a typical household up to £72 in each of the two have been completed. CQC will follow up to check that years of the council tax freeze schemes. the improvements have been made, including further inspections where necessary. Where CQC has issued The Localism Act 2011 abolished central Government warning notices it has been back to inspect and found capping and instead gives local people the power to the locations to be compliant. veto excessive council tax increases in a binding referendum. No authority has reported that it will be holding a In the original proposal for the learning disability referendum in 2012-13 by setting an excessive increase. review the plan was to undertake two phases. Phase one The Localism Act measures will continue to ensure that was the inspection of 150 locations. These inspections local taxpayers are protected in future years. have now been undertaken. Phase two was the inspection of registered services for people with learning disabilities Such action on keeping down council tax complements covering a wider range of services than those included the measures already taken to help families—by stopping in phase one, notably adult care providers. any council tax revaluation in this Parliament and by abolishing plans to impose bin taxes on family homes. However, CQC has taken the opportunity within phase one to inspect 33 adult social care locations. Council tax freeze grant Following discussion at the CQC inspection programme The Government set aside £675 million to help authorities advisory group, CQC decided not to proceed with phase in England freeze their council tax for a further year. A two at this time but wait until the national report on the local authority that has done so will receive a grant findings from the LD inspection programme had been equivalent to a 2.5% increase in its 2011-12 band D published and then reassess the options. figure multiplied by the latest available tax base figure. A programme of thematic inspections is starting this Police and single purpose fire and rescue authorities April looking at domiciliary care agencies. This will test will receive a grant equivalent to a 3% increase. The the tools for inspecting this type of service so they can City of London will receive a grant equivalent to a be used for other care groups. This programme of 2.75%) increase with slightly different arrangements inspection will focus on older people. applying to the Greater London Authority (based upon a combination of a 2.75%) and a 3% increase). Once the criminal proceedings are completed, we expect the serious case review, chaired by Dr Margaret My Department will write to individual local authorities Flynn, to be published. The serious case review is shortly informing them of the amount of freeze grant I looking at: propose to pay to them for meeting the terms of the new scheme for 2012-13. I intend that this one off grant will i. the effectiveness of the multi-agency response to concerns raised and events be paid in full in April 2012. All authorities which froze or reduced their council tax in 2011-12 will continue to within Winterbourne View hospital since January 2008; receive a further grant in each year of the spending ii. the role of commissioning organisations in initiating review. patient admissions and the role of the regulator; and iii. the operational policies and practice, including the governance HEALTH arrangements of Castlebeck Care (Teesdale) Ltd. The review is considering information submitted by Castlebeck, NHS South Gloucestershire PCT, NHS Winterbourne View Hospital South West, South Gloucestershire council and Avon and Somerset police. The Minister of State, Department of Health (Paul These reports will feed into the wider departmental Burstow): I promised to update the House about ongoing review of Winterbourne View together with evidence activity in relation to Winterbourne View private hospital from other investigations and reports. The review team and other services for people with learning disabilities. are actively engaging with people with learning disabilities The House will wish to note that four people employed or autism and family carers, as well as with commissioners, at Winterbourne View hospital appeared in Bristol Crown professionals and providers to explore the emerging court on 16 March and pleaded guilty to offences under issues and possible options. the Mental Capacity Act 2005. They have been referred The review is considering all the evidence carefully for sentencing reports, alongside the three people who and assessing the implications for policy and practice pleaded guilty on 9 February. A further four people are across the system, including for commissioners, providers, due back in court after Easter. professionals, regulators and Government. Everyone 61WS Written Ministerial Statements21 MARCH 2012 Written Ministerial Statements 62WS has a part to play in addressing these issues to help Today’s announcement provides more detail about prevent abuse and to drive up standards for people with the operation of the new tax and borrowing powers and learning disabilities or autism and challenging behaviour. about the non-finance elements of the Scotland Bill. While these reviews and inspections are ongoing, we The Government are committed to: are taking action to address emerging issues. For example: Transferring tax and borrowing powers transparently CQC has amended its whistle blowing policy; The Government will ensure that changes in the the whistle-blowing helpline for NHS staff has been extended Scottish Government’s budget are closely linked to to staff and employers in the social care sector from 1 January; the performance of their economy by adjusting Scotland’s on 18 October, the Secretary of State announced that the budget to reflect new tax powers using the model NHS constitution is being updated to include: recommended to the Welsh Assembly in the Holtham an expectation that staff should raise concerns at the report. This approach, agreed with the Scottish Finance earliest opportunity; Minister and the Chief Secretary to the Treasury, will a pledge that NHS organisations should support staff help protect the Scottish Government’s budget from when raising concerns; and wider macro-economic shocks. clarity around the existing legal right for staff to raise The Government will work together with the Scottish concerns about safety, malpractice or other wrong doing Government over coming months and years to give without suffering any detriment; operational effect to the powers including the block we are working on legislation that will require stronger local grant adjustment, in a fair and sustainable way and action in relation to safeguarding adults; and should reach agreement on all implementation issues. where issues for local management are highlighted in the The Scotland Bill will be amended to require the NHS review, they will be developing actions plans to deal with this. Secretary of State for Scotland and Scottish Ministers to produce annual reports to the UK and Scottish Ministers will report findings from the departmental Parliaments on the progress of transferring the tax review to Parliament and determine what further action and borrowing powers to the Scottish Government. is necessary. In line with long-standing principles of devolved I will continue to update the House as things develop. funding, the Scottish Government will pay for their new income tax system of administration. The Government will explore the scope to offset some of the savings from HMRC ceasing its administration of SCOTLAND stamp duty land tax and landfill tax. Ensuring the new borrowing regime is sustainable Scotland Bill Borrowing limits will be reviewed regularly ahead of spending reviews through the Joint Exchequer Committee. The Secretary of State for Scotland (Michael Moore): The Scottish Government will be given access to The Scotland Bill is a significant step forward in Scottish loans over a longer period in principle, subject to the devolution. It provides for the biggest transfer of fiscal ability to repay and the type of asset. power from London since the creation of the United Kingdom—including a new Scottish rate of income The Government will shortly launch a consultation tax, full devolution of stamp duty land tax and landfill on the Scottish Government issuing their own bonds. tax, and new borrowing powers. Together, the Office for Further devolution in the future Budget Responsibility (OBR) forecast that these measures Aggregates Levy will be devolved once the legal will enable the Scottish Government to raise between challenges in the European and UK courts have been £5 billion and £6 billion of their budget in addition to fully resolved. around £4 billion they currently raise in council tax and The Government are open to considering what further non-domestic rates. powers might be devolved Since its introduction in November 2010, the Bill has after a referendum on independence. had detailed scrutiny in the UK and Scottish Parliaments. In Westminster, it has passed successfully through its Non-finance elements of the Scotland Bill Commons stages and will soon complete Lords Committee The clauses reserving the regulation of health professions consideration. In Holyrood, the Scottish Parliament and insolvency will be removed, following assurances voted overwhelmingly in support of the Bill last March. from the Scottish Government that they will work After productive discussions with the Scottish closely with the Government to ensure consistent Government in recent weeks, the Government are today regulatory regimes apply to health professions and announcing a package of measures in the Bill and that insolvency procedures are kept up to date and supporting non-legislative arrangements to show that operate effectively throughout the UK. the powers will operate in a fair and sustainable way to The clause allowing partial referral of Acts of the the benefit of Scotland and the rest of the UK. Scottish Parliament to the Supreme Court will be Agreement has been reached with the Scottish removed at the request of the Scottish Government. Government on both the finance and non-finance provisions This means in the future—as at present—a full Act included in the Bill and the Scottish Government will could be referred to the Supreme Court, even if only today table a legislative consent memorandum a single provision raised competence issues. recommending that the Scottish Parliament votes in The clause on implementing international obligations support of the Bill on a further legislative consent will be removed following assurances from the Scottish motion for the Bill. Government that they will work closely with the 63WS Written Ministerial Statements21 MARCH 2012 Written Ministerial Statements 64WS

Government to ensure that the UK continues at all review, chaired by the Lord Justice General of Scotland, times to implement its international obligations. If after three years of operation. Certification will be there is a failure to implement any international included within the scope of the review, and it will be obligation the UK Government may use their powers possible for changes to be made to the arrangements by under s.58 (2) of the Scotland Act to direct Scottish subordinate legislation following the review. Ministers. These announcements today meet the tests the Additional amendments will be made to the provisions Government have set for changes to the Bill package—they on appeals to the Supreme Court from Scottish criminal are based on evidence, maintain the cross-party consensus cases. A certification requirement will not be introduced. which supports the Bill, and will benefit Scotland without However, the new arrangements will be subject to a detriment to the rest of the UK. 9P Petitions21 MARCH 2012 Petitions 10P

Mentally Incapacitated Persons (Rights of Carers to Petitions Financial Information) The Petition of Antoinette Mary Tricker, Wednesday 21 March 2012 Declares that the Petitioner, as the closest relative and carer of Feliks and Rosemary Zakrzewski, both of whom had been diagnosed with Alzheimer’s, was not OBSERVATIONS permitted under client confidentiality rules to see the bill of costs submitted by the financial deputy for the above persons, a solicitor appointed by the Court of JUSTICE Protection, despite having serious concerns about over- Graves in Cemeteries in Walsall charging. The Petition of citizens of Walsall, Declares that when the above named persons died, Declares that the Petitioners object to Walsall Council’s as both executor and beneficiary under their wills, the plans to remove borders around all graves at cemeteries Petitioner was deemed to have a financial interest in in Walsall including Streetly Cemetery, thus allowing their estates and therefore had authority to investigate lawnmowers, workmen and members of the general their financial affairs. In order to challenge the bill of public to pass on top of the graves; declares that the costs, the Petitioner was forced to go through a long Council has never objected or removed any of the and costly judicial process. The Petitioner’s concerns borders before or maintained the cemetery as a lawn about over-charging were found to be justified, resulting cemetery and that no consultation has taken place with in a substantial refund to the estate. However, the above the families of those buried in this and other cemeteries named persons were unable to benefit from this refund in the borough; and declares that the Petitioners believe and further the estate was not reimbursed the costs of that the plan to remove the borders around graves, the legal action, resulting in a net loss to the estate. which would allow lawn mowers and workmen to pass Declares that the petitioner believes that where a over graves, is an infringement of their human rights, person is mentally incapacitated, they are by definition beliefs and dignity. unable to comprehend complex financial matters and The Petitioners therefore request that the House of unable to challenge a bill of costs. Consequently they Commons urges the Government to take all possible are at risk of being financially abused by others, particularly steps to encourage Walsall Metropolitan Borough Council where there is no third party input to an assessment of to reconsider their decision to remove borders from their costs. around graves in cemeteries in Walsall. Declares that relatives of mentally incapacitated persons And the Petitioners remain, etc.—[Presented by Valerie are required to be accountable and transparent in providing Vaz, Official Report, 1 February 2012; Vol. 539, c. 954 .] financial information about the person to a financial [P001001] deputy and declares that the Petitioner believes that the Observations from the Secretary of State, Ministry of financial deputy should be similarly accountable and Justice: provide copies of any bill of costs and narratives to the person’s family. The Local Authorities’ Cemeteries Order 1977 (LACO 1977) details the management, regulation and control The Petitioner therefore requests that the House of of cemeteries. Under this order, responsibility for Commons urges the Government to bring forward maintenance in cemeteries which it owns rests with the legislation to allow the nearest relative of a mentally relevant local authority. incapacitated person to see all bills of costs relating to LACO gives burial authorities the power to do whatever that person during their lifetime, to ensure that where they consider necessary or desirable for the proper items are disputed, they are reviewed in collaboration management, regulation and control of a cemetery. with a costs officer prior to payment of any bill and to This includes levelling the surface of any grave to the ensure that where charges are found to be inappropriate level of the adjoining ground and removing kerbs or excessive, the person should not have to bear the surrounding graves. costs of a reassessment. Before exercising these powers LACO provides that And the Petitioners remain, etc.—Official Report, the burial authority is required to display a notice of 9 February 2012; Vol. 540, c. 1P .] their intention to do so in conspicuous positions at the [P001007] entrances to the cemetery and to publish a notice in two Observations from the Secretary of State for Justice: successive weeks in the newspaper or newspapers, which The Court of Protection is a specialist court for all in their opinion would secure the best publicity in the issues relating to people who lack capacity to make area served by the cemetery. their own specific decisions. The court makes decisions Neither this Department nor the Government more and appoints deputies to make decisions in the best widely have a role in such decisions or powers to intervene interests of those who lack capacity to do so. and the MOJ cannot comment on the way in which The Court of Protection issues a Practice Direction Walsall metropolitan borough has decided to maintain on the rates of Fixed Costs that solicitors may charge its cemeteries. for acting as a deputy. Copies of the Practice Direction Nevertheless, if the petitioners are concerned that the can be found on the Justice website. Where the costs appropriate procedures have not been followed, they exceed the rates in the Practice Direction, the solicitor may wish to use the internal complaints procedure must apply to the Supreme Court Costs Office for an which the council has in place. Should they then remain assessment of costs. Once their bill has been assessed, dissatisfied with the council’s response, they are at liberty which usually takes two weeks, the court is able to direct to complain to the local government ombudsman. payment out of the client’s estate. 11P Petitions21 MARCH 2012 Petitions 12P

Where a solicitor is appointed as deputy for a person If relatives of an incapacitated person suspect that who lacks capacity, they are bound by the legal duty of solicitors may be overcharging, it is open to them to confidentiality owed to the client and cannot lawfully apply to the court seeking permission to have sight of divulge information relating to the clients affairs without the solicitor’s bill. As this option is already available, the the express authority of the Court of Protection during Government has no plans to introduce legislation. the lifetime of the client. 693W Written Answers21 MARCH 2012 Written Answers 694W Written Answers to Digital Technology

Adam Afriyie: To ask the Secretary of State for Questions Culture, Olympics, Media and Sport how his Department defines the term digital economy. [101224] Wednesday 21 March 2012 Mr Vaizey: This Department does not define the term specifically, and various academic studies take slightly different approaches, but broadly the digital HOUSE OF COMMONS COMMISSION economy underpins the whole economy and enables the UK to be competitive and more productive. Digital Food: Waste communications infrastructures, such as the broadcast, broadband and mobile networks, enable the delivery of services by the wider economy, as well as delivering Kerry McCarthy: To ask the hon. Member for Caithness, consumer choice and services themselves. They enable Sutherland and Easter Ross, representing the House of our creative and content industries to continue to be Commons Commission, if he will take steps to ensure among the most innovative and best in the world, and that the House of Commons signs up to the Waste and as a whole the digital economy accounts for approximately Resources Action Programme’s voluntary agreement to 23% of UK GDP growth according to McKinsey. reduce food waste. [100749]

John Thurso: I understand that the hon. Member is Libraries meeting officials next week to discuss the voluntary agreement for the hospitality and food service sector, and the work that it might entail. I am sure that they Dan Jarvis: To ask the Secretary of State for Culture, will be keen to learn more about how the Waste and Olympics, Media and Sport how many libraries he has Resources Action Programme can contribute to reducing visited in an official capacity since May 2010. [94783] further the amount of food waste from catering operations in the House of Commons. Mr Vaizey [holding answer 20 February 2012]: Ministers have visited various libraries in the course of their duties since May 2012, including those in Thame, Birmingham, York, Norwich, Bristol, Hertford and CULTURE, MEDIA AND SPORT Salisbury. Betting: Dormant Accounts Mass Media Clive Efford: To ask the Secretary of State for Culture, Olympics, Media and Sport if he will make it his policy to require commercial betting operators to report the Dr Whiteford: To ask the Secretary of State for amounts held in dormant betting accounts and unclaimed Culture, Olympics, Media and Sport what media monitoring winnings in their annual returns to the Gambling services his Department has purchased in each of the Commission; and if he will make a statement. [100409] last five years. [100794]

John Penrose [holding answer 19 March 2012]: In his John Penrose: The costs of media monitoring (inclusive report the right hon. Member for Bath (Mr Foster) of value added tax) for this Department in the last five suggested requiring commercial operators to report the years is in the following table: amounts held in reclaiming winnings and dormant betting accounts. As his report also recommended, the Government £ will consider this issue once we have legislated for our Precise Media proposals for remote gambling. Cabinet Office Media Monitoring—press cuttings Monitoring Unit service

Broadband 2006-07 35,426.25 86,945.43 2007-08 40,537.50 68,072.16 Adam Afriyie: To ask the Secretary of State for 2008-09 45,237.50 45,402.86 Culture, Olympics, Media and Sport what assessment 2009-10 44,275.00 48,374.06 he has made of the likely effect of femtocell technology 2010-11 42,887.50 40,109.95 in expanding mobile coverage in not-spot areas. [101225] The Cabinet Office Media Monitoring Unit provides monitoring of broadcast media and wire services, plus Mr Vaizey: As part of the Mobile Infrastructure some monitoring of print media. Precise media monitoring Programme, Ofcom and my officials are exploring a (formally EDS Media) provide a daily press cuttings range of technology solutions to deliver mobile coverage service in the Department’s policy areas. The cost of into not-spot areas. Femtocells are included within the fees to the Newspaper Licensing Agency is not included technologies being studied. within the costs of the press cuttings service. 695W Written Answers21 MARCH 2012 Written Answers 696W

NORTHERN IRELAND Mr Swire: Protecting national security, which includes the monitoring of terrorist activity, is the responsibility Lost Property of the Security Service, who work closely with the PSNI, An Garda Siochana and others. Responsibility Dr Whiteford: To ask the Secretary of State for for policing is devolved and therefore monitoring of Northern Ireland what property has been lost or stolen criminal activity is the responsibility of the PSNI. from his Department in the last 12 months; and what the estimated cost was of replacement of such property. Naomi Long: To ask the Secretary of State for Northern [100904] Ireland what matters are covered by the term explosives security in the devolution settlement. [100835] Mr Swire: In the past 12 months, four small exercising aids were reported missing from the Department. Each Mr Swire: The Secretary of State for Northern Ireland, of these items was very old and was not replaced. It is my right hon. Friend the Member for North Shropshire estimated that it would have a cost a total of around £40 (Mr Paterson), retains functions under the regulations to replace these items. covered by sub para 6 of the Northern Ireland Act 1998 (Devolution and Policing of Justice Functions) Order Mass Media 2010 which refers to those matters relating to the regulation, control and security of explosives (and those chemicals Dr Whiteford: To ask the Secretary of State for which can be used if they were an explosive) in Northern Northern Ireland what media monitoring services his Ireland and which involves their full licensing and Department has purchased in each of the last five traceability from point of manufacture to ownership years. [100903] and eventual point of use.

Mr Swire: Comparable figures for my Department as Welfare Reform Act 2012 it is now configured are not available before 12 April 2010 following the completion of devolution of policing Vernon Coaker: To ask the Secretary of State for and justice functions. Northern Ireland what assessment he has made of the The Northern Ireland Office Information Service effect of the Welfare Reform Act on (a) child poverty, costs for media monitoring for April 2010 to April 2011 (b) pensioner poverty and (c) families in poverty in were nil. Northern Ireland; and if he will make a statement. The Northern Ireland Office Information Service [100726] costs for Media Monitoring for April 2011 to March 2012 were £11,340. Mr Swire: Except for the technical provisions set out in section 149 of the Welfare Reform Act 2012 this Parades Commission statute does not extend to Northern Ireland. Social security, child support and pensions are transferred Mr Dodds: To ask the Secretary of State for matters which are the responsibility of the Minister for Northern Ireland what assessment he has made of the Social Development in the Northern Ireland Executive. Annual Report and Financial Statements for the year I understand that the Minister for Social Development ended 31 March 2010 of the Parades Commission for intends shortly to introduce a Welfare Reform Bill to Northern Ireland; what assessment he has made of the the Northern Ireland Assembly following the consultation value for money of the Commission; and when he that is required under section 87 of the Northern Ireland expects the Annual Report and Financial Statements Act 1998 to provide single systems of social security, for 2010-11 and 2011-12 to be presented to Parliament. child support and pensions for the United Kingdom. [100787] The assessments requested by the hon. Member are. therefore, matters for the Minister for Social Development. Mr Swire: The Annual Report and Accounts of the Parades Commission for 2009-10 was presented to The reforms provided by the Welfare Reform Act the Northern Ireland Office and laid before Parliament 2012 in respect of Great Britain will ensure that around on 6 September 2011. The Parades Commission is an 2.8 million households are better off, 1 million households independent non-departmental public body and its will see an increase of £25 in their weekly income. The Accounting Officer holds delegated responsibility for reforms in Great Britain will also take 900,000 people considering value for money in respect of the Commission’s out of poverty and we shall invest an additional £300 million operations. During the course of each financial year, into child care support under universal credit, on top of the NIO, in conjunction with HM Treasury, conducts a the £2 billion already spent under the current system. detailed review of all funds, including those allocated to The reforms will ensure that under universal credit non-departmental public bodies. The Commission is work will always pay. expected to present its Annual Report and Accounts for 2010-11 and 2011-12 before the summer recess. Work Experience

Terrorism Chi Onwurah: To ask the Secretary of State for Northern Ireland pursuant to the answer of 28 April 2011, Naomi Long: To ask the Secretary of State for Official Report, column 518W, on departmental work Northern Ireland which agencies are responsible for experience, how many people (a) worked as an intern, monitoring levels of terrorist and criminal activities (b) undertook a work experience placement and (c) linked to proscribed organisations in Northern Ireland. worked as a volunteer in his Department in accordance [100808] with the hiring criteria set out in that answer in the last 697W Written Answers21 MARCH 2012 Written Answers 698W

12 months for which data are available; and how many Building Regulations such people were employed other than according to those criteria. [100735] Mark Lancaster: To ask the Secretary of State for Communities and Local Government what assessment Mr Swire: The Northern Ireland Office has not employed has been made of the flexibility of the requirement in anyone in the last 12 months in any of the specified the national building regulations to use Gyproc ThermaLine categories. SUPER board when retrofitting a building. [100674]

Andrew Stunell: Part L of the building regulations WALES sets performance-based energy efficiency standards for works carried out in buildings, including the upgrading Mass Media of thermal insulation when external fabric is renovated (where this is cost-effective). The regulations neither Dr Whiteford: To ask the Secretary of State for Wales prescribe nor prohibit the use of particular materials or what media monitoring services her Department has products. It is for the building control body to assess purchased in each of the last five years. [100911] whether the products and materials used are fit for purpose and whether the works meet the requirements Mr David Jones: The Wales Office purchased media in the regulations. monitoring from the Central Office for Information in The statutory guidance to Part L (conservation of each of the last five years. This contract ended in fuel and power) recommends that where thermal elements August 2011 when our Communications Branch took (external walls, roof, floor) are being renovated e.g. over media monitoring. re-roofing, rendering etc. then cost-effective improvements should be made to bring these elements up to a certain Work Experience level of thermal efficiency. The guidance suggests that the use of insulated wall board is one way of upgrading Chi Onwurah: To ask the Secretary of State for Wales walls, though advises that an assessment should be pursuant to the answer of 3 May 2011, Official Report, made of the impact on the internal floor area, acoustics column 662W, on departmental work experience, how and the risk of condensation. many people (a) worked as an intern, (b) undertook a Landlords work experience placement and (c) worked as a volunteer in her Department in accordance with the hiring criteria set out in that answer in the last Graham Jones: To ask the Secretary of State for 12 months for which data are available; and how many Communities and Local Government (1) what his such people were employed other than according to Department’s definition is of a long-distance landlord; those criteria. [100745] [101518] (2) what his policy is on long-distance landlords; Mr David Jones: In the last 12 months, we have had [101519] two undergraduates, one who undertook voluntary work (3) whether his Department has conducted research experience as an optional part of his degree course into the growth of long-distance landlords. [101520] during term time, and a second who undertook a work experience placement during his summer holidays. We Grant Shapps: My Department does not collect had no one employed outside our hiring criteria. information specifically on “long-distance” landlords, and does not have a definition of long-distance landlord. We expect the same level of performance from all private landlords, regardless of where they live. The COMMUNITIES AND LOCAL GOVERNMENT existing regulatory framework underpins that expectation. Areas of Outstanding Natural Beauty: Planning Local Government: Newspaper Press Permission Kwasi Kwarteng: To ask the Secretary of State for Daniel Kawczynski: To ask the Secretary of State Communities and Local Government (1) for what reason for Communities and Local Government whether a local authorities are required to advertise statutory management board of an Area of Outstanding Natural notices in local newspapers; [99322] Beauty (AONB) is a statutory consultee for planning applications (a) within the AONB and (b) on land (2) what assessment his Department has made of the adjacent to or overlooked by an AONB. [100716] costs and benefits of requiring local authorities to advertise statutory notices (a) in local newspapers and Robert Neill: A management board which oversees (b) by other means of communication. [99373] the management of an Area of Outstanding Natural Beauty is not a statutory consultee as set out in the Robert Neill: The purpose of statutory notices is to Town and Country Planning (Development Management ensure that the public are informed of decisions by their Procedure) (England) Order 2010. It is open to management local authority which may affect their quality of life, boards, including local Area of Outstanding Natural local amenity or their property. This is especially the Beauty partnerships, to identify for the local planning case in relation to planning applications, where there is authorities concerned, the types of planning applications a limited period for local residents to make representations. they are likely to be interested in and on which they may My Department has not made any recent assessment wish to comment. of the costs and benefits of statutory notices. 699W Written Answers21 MARCH 2012 Written Answers 700W

Notwithstanding, Ministers have been clear that, in We are reviewing the audit arrangements for smaller an internet age, commercial newspapers should expect local public bodies, following the 2011 consultation on over time less state advertising as more information is the future of local audit and the Government’s response syndicated online by local authorities for free. The to it, which was published in-January. We intend to flipside is the free press should not face unfair state publish proposals for smaller focal public bodies alongside competition from town hall newspapers and municipal the draft Local Audit Bill this spring. propaganda dressed up as local reporting. Furthermore the new general power of competence in the Localism Act 2011 will enable an eligible parish Localism Act 2011 council to do anything which an individual can do, rather than being constrained to act only within the Heidi Alexander: To ask the Secretary of State for limits of specific powers. It will free them to act innovatively Communities and Local Government when he expects without being found by the courts to have acted ultra provisions within the Localism Act 2011 relating to vires. The power will also enable such parish councils, the duty of local authorities to hold a register of for the first time, to do things for a commercial purpose. community assets to come into force. [101106] This power will be available from April, subject to parliamentary process, to parish councils if they meet Andrew Stunell [holding answer 20 March 2012]: We certain requirements. are currently in the process of finalising the Assets of Shared Room Rate: Lancashire Community Value provisions which will require local authorities to make available a list of their assets of Graham Jones: To ask the Secretary of State for community value. We expect these regulations will come Communities and Local Government how many people into force in the summer of 2012. will be affected by the extension of the Shared Room Rate to under-35s in (a) England, (b) Lancashire, (c) NewBuy Guarantee Scheme Hyndburn borough council area and (d) Rossendale borough council area. [99396] Dame Joan Ruddock: To ask the Secretary of State for Communities and Local Government what estimate Maria Miller: I have been asked to reply on behalf of he has made of the likely level of take-up of the New the Department for Work and Pensions. Buy Guarantee scheme in London. [100699] The information is presented in the following table: Claimants affected by the extension of the Shared Accommodation Grant Shapps: With the NewBuy Guarantee scheme Rate age threshold we have made provision to help up to 100,000 home Area Number of claimants affected buyers secure higher loan to value mortgages in England for new build properties. It will be for potential homebuyers England 55,500 in each local area to decide which mortgages and properties Lancashire 1,420 are right for them. Hyndburn 190 Properties can cost up to £500,000 and still be eligible Rossendale 110 under NewBuy, meaning that families seeking to buy Notes: homes in the south-east are able to access the scheme 1. The figures are estimates, derived from analysis of the housing benefit caseload at March 2010. even though they live in an area of higher demand and 2. Figures are rounded to the nearest 10. therefore higher property prices. Just 5% of housing 3. The figure for Lancashire is the total across the 12 local authorities developments are too expensive to be purchased under in Lancashire, excluding unitary authorities. NewBuy, and they are more likely to be bought by Source: people who do not need the scheme’s support. Equality impact assessment of the increase to the Shared Accommodation Rate age threshold, available on the DWP website at: http://www.dwp.gov.uk/docs/eia-hb-shared-accommodation-age- Parish Councils: Bureaucracy threshold.pdf Wind Power: Shropshire Daniel Kawczynski: To ask the Secretary of State for Communities and Local Government what steps he is Daniel Kawczynski: To ask the Secretary of State for taking to reduce red tape and bureaucracy facing Communities and Local Government whether any parish councils such as Bayston Hill Parish Council. protection is offered to Areas of Outstanding Natural [99836] Beauty in Shropshire from applications to erect large wind turbines. [100715] Robert Neill: The Department for Communities and Local Government are taking a number of steps to Robert Neill: In the consultation draft of the National reduce bureaucratic hurdles for parish councils. Planning Policy Framework we made it clear that local We plan to promote a legislative reform order to planning authorities should give great weight to protecting repeal section 150(5) of the Local Government Act landscape and scenic beauty in an Area of Outstanding 1972. This provision, which requires two members to Natural Beauty. Decisions on planning applications sign every cheque issued by a parish council, puts affecting an area, as elsewhere, should be made in barriers in the way of these councils adopting modern accordance with the development plan for the area, electronic methods of payment. We aim to publish draft unless material considerations indicate otherwise. proposals for the legislative reform order to repeal Section 85 of the Countryside and Rights of Way Act section 150(5) in the next few weeks, and to implement 2000 puts a duty on a relevant authority in exercising or the reform later this year. performing any function in relation to, or so as to 701W Written Answers21 MARCH 2012 Written Answers 702W affect, land in an Area of Outstanding Natural Beauty Five individuals through the Cabinet Office work placement to have regard to the purpose of conserving and enhancing programme; and the natural beauty of the area. Nine individuals on work experience placements arranged through informal routes. (Details of how these were arranged Daniel Kawczynski: To ask the Secretary of State for have not been recorded centrally.) Communities and Local Government what assessment It is possible that other work experience placements he has made of the efficacy of the opportunities have been arranged through informal routes and have available to local communities in Shropshire to engage not been recorded centrally. with relevant planning authorities on planning applications to install wind turbines in the Rea Valley. [100809] WORK AND PENSIONS Robert Neill: We have not made a specific assessment Access to Work Programme of the situation in the Rea Valley, but I refer my hon. Friend to the answer I gave my hon. Friend the Member Mr Woodward: To ask the Secretary of State for for Wellingborough (Mr Bone) on 15 March 2012, Work and Pensions how much funding from the Access Official Report, columns 398-99W. to Work Scheme has gone to support people resident in (a) St Helens South and Whiston constituency, (b) the Work Experience North West and (c) England in each of the last five years; what such funds have been used; what provision Chi Onwurah: To ask the Secretary of State for it has gone towards; and what the average level of each Communities and Local Government pursuant to the grant is. [100192] answer of 4 May 2011, Official Report, column 741W, on departmental work experience, how many people Maria Miller: Information on Access to Work awards (a) worked as an intern, (b) undertook a work experience granted and the corresponding spend is only available placement and (c) worked as a volunteer in his Department from 1 April 2007 onwards. Spend information is currently in accordance with the hiring criteria set out in that only available up to 31 March 2011. answer in the last 12 months for which data are available; The following table shows the Access to Work spend and how many such people were employed other than in (a) St Helens South and Whiston constituency, (b) according to those criteria. [100742] the North West and (c) England in each of the last four full financial years, broken down by the type of Access Robert Neill: Between 1 March 2011 and 29 February to Work support the provision has gone towards1, 2: 2012, my Department has provided placements for: 1 Source—Access to Work database. Amounts are rounded to the Five interns through the Greenwich university internship nearest £1,000. Totals may not sum due to rounding. ″ — ″ programme; Denotes nil or negligible or corresponding number of awards Four interns recruited through open advertisement on the granted is less than 5. website: 2 The Access to Work budget is national and as such there are no www.w4mp.org/ individual budgets allocated to geographical regions.

£ Area Type of AtW support 2007-08 2008-09 2009-10 2010-11

St Helens South and Adaptation to Premises ———— Whiston constituency Adaptation to Vehicles ———— Communication Support at Interview ———— Miscellaneous ———— Miscellaneous with Cost Share ———— Travel in Work — — 1,000 1,000 Special Aids and Equipment 9,000 32,000 20,000 20,000 Support Worker 142,000 123,000 160,000 172,000 Travel to Work 34,000 35,000 32,000 48,000 AtW Assessment 15,000 15,000 16,000 13,000 Total 201,000 206,000 230,000 255,000

North West Adaptation to Premises 66,000 122,000 117,000 131,000 Adaptation to Vehicles 130,000 139,000 122,000 89,000 Communication Support at Interview 4,000 3,000 3,000 2,000 Miscellaneous 55,000 21,000 4,000 14,000 Miscellaneous with Cost Share 1,000 10,000 19,000 4,000 Travel in Work 28,000 40,000 85,000 63,000 Special Aids and Equipment 1,290,000 1,249,000 1,677,000 1,576,000 703W Written Answers21 MARCH 2012 Written Answers 704W

£ Area Type of AtW support 2007-08 2008-09 2009-10 2010-11

Support Worker 4,318,000 5,476,000 7,177,000 7,767,000 Travel to Work 2,492,000 2,842,000 3,331,000 3,484,000 AtW Assessment 736,000 728,000 848,000 807,000 Total 9,119,000 10,630,000 13,382,000 13,937,000

England Adaptation to Premises 558,000 859,000 1,303,000 1,309,000 Adaptation to Vehicles 909,000 732,000 931,000- 688,000 Communication Support at Interview 54,000 46,000 43,000 46,000 Miscellaneous 383,000 131,000 83,000 82,000 Miscellaneous with Cost Share 54,000 119,000 105,000 50,000 Travel in Work 487,000 702,000 851,000 784,000 Special Aids and Equipment 7,378,000 8,630,000 11,071,000 10,067,000 Support Worker 30,785,000 36,838,000 46,813,000 52,905,000 Travel to Work 17,369,000 20,355,000 22,818,000 24,696,000 AtW Assessment 2,991,000 3,304,000 4,727,000 4,274,000 Total 60,968,000 71,715,000 88,745,000 94,902,000

The following table shows the average level of each 3 Average award defined as total Access to Work spend divided by Access to Work award in (a) St Helens South and the number of Access to Work awards granted. Average awards Whiston constituency, (b) the North West and (c) are rounded to the nearest £100. England in each of the last four full financial years, broken down by the type of Access to Work support the provision has gone towards3.

£ Area Type of AtW support 2007-08 2008-09 2009-10 2010-11

St Helens South and Adaptation to Premises ———— Whiston constituency Adaptation to Vehicles ———— Communication Support at Interview ———— Miscellaneous ———— Miscellaneous with Cost Share ———— TravelinWork ———— Special Aids and Equipment 400 1,100 600 1,100 Support Worker 7,500 6,200 6,900 6,900 Travel to Work 2,300 2,400 2,100 2,500 AtW Assessment 600 500 300 300 Total 2,300 2,100 1,800 2,400

North West Adaptation to Premises 3,400 4,900 2,700 4,700 Adaptation to Vehicles 4,100 4,100 3,100 3,300 Communication Support at Interview 100 200 200 100 Miscellaneous 400 700 400 2,300 Miscellaneous with Cost Share 200 500 1,300 — Travel in Work 300 400 600 400 Special Aids and Equipment 1,200 900 900 1,300 Support Worker 3,900 4,300 5,100 5,000 Travel to Work- 1,800 1,900 2,000 1,900 AtW Assessment 700 400 300 400 Total 1,800 1,700 1,700 2,000

England Adaptation to Premises 3,700 4,700 5,200 6,200 Adaptation to Vehicles 3,900 3,200 3,900 3,800 705W Written Answers21 MARCH 2012 Written Answers 706W

£ Area Type of AtW support 2007-08 2008-09 2009-10 2010-11

Communication Support at Interview 200 100 100 200 Miscellaneous 800 1,000 900 1,300 Miscellaneous with Cost Share 400 1,500 1,600 1,500 Travel in Work 800 900 900 700 Special Aids and Equipment 1,100 1,000 1,100 1,500 Support Worker 4,600 4,900 5,300 5,200 Travel to Work 2,000 2,100 2,100 2,200 AtW Assessment 400 300 400 400 Total 1,900 1,900 2,000 2,300

A person may receive more than one element of Tom Greatrex: To ask the Secretary of State for Work Access to Work support at any given time. Therefore the and Pensions (1) how many work capability assessments sum of the Access to Work awards granted in a year is have been carried out by Atos Healthcare in each month greater than the total numbers helped through Access since May 2010; [101241] to Work in that year. For example, there were 45,700 awards (2) how many appeals to work capability assessment granted in Great Britain during 2010-11, at an average decisions have been heard in each month since May cost per award of 2,300. This resulted in 35,820 individuals 2010. [101242] being helped through Access to Work during 2010-11, with an average cost per person of 2,900. Chris Grayling: The Department regularly publishes Atos Healthcare data on employment and support allowance (ESA) and the work capability assessment (WCA), the latest publication was released in January 2012 and can be found on the Tom Greatrex: To ask the Secretary of State for Work departmental website here: and Pensions on how many occasions a Jobcentre Plus decision-maker did not follow the advice of an Atos- http://research.dwp.gov.uk/asd/workingage/ approved healthcare professional when making a decision index.php?page=esa_wca on the eligibility for employment and support allowance Tables 2a and 2b show the total number of WCAs in each month since May 2010. [101240] completed against ESA claims and their outcomes by the date the assessment was completed, broken down by Chris Grayling: Decisions on entitlement to employment month of assessment. This is the latest data available. and support allowance are made by Jobcentre Plus Table 2a covers the initial WCA on a claim and table 2b (JCP) decision makers who make the decision having provides data on any further WCAs on an existing weighed up all of the evidence, including the Atos claim. recommendation. Table 3 in the publication gives the outcomes of The following table shows the number occasions where completed appeals by the month the claims started. the JCP decision maker’s final decision was different to the advice given by the Atos healthcare professional. I have placed a copy of these tables in the Library. Note that these figures do not include WCAs completed JCP decision differs from Atos on incapacity benefit reassessment claims. The Department Month 2010-11 recommendation has recently published initial findings on the outcomes May 900 of IB reassessment, which can be found on the departmental June 900 website here: July 1100 http://statistics.dwp.gov.uk/asd/workingage/ August 1200 index.php?page=esa_ibr September 1300 October 1900 November 2600 Attendance Allowance December 2300 January 2700 Barbara Keeley: To ask the Secretary of State for February 3100 Work and Pensions what estimate he has made of the March 3700 cost of digitising attendance allowance records for the April 2800 purposes of allowing data to be used more widely by May 3100 organisations in the care system to target prevention Notes: and other holistic services. [99931] 1. These figures do not include work capability assessments completed on incapacity benefit (IB) reassessment claims. The Department has recently published initial findings on the outcomes of IB reassessment, Maria Miller: No estimate has been made of the cost which can be found on the departmental website: http://statistics.dwp.gov.uk/asd/workingage/index.php?page=esa_ibr. of digitising attendance allowance records for the purposes 2. The table includes initial assessments only and that the numbers of sharing this information more widely with the care have been rounded to the nearest 100. system. There are no plans to digitise these records. 707W Written Answers21 MARCH 2012 Written Answers 708W

Employment and Support Allowance John Mann: To ask the Secretary of State for Work and Pensions what account his Department took of the Mr Charles Walker: To ask the Secretary of State for contract performance and risk assurance ratings of Work and Pensions what proportion of employment welfare-to-work prime contractors under Flexible New and support allowance claimants have been placed in Deal and other relevant programmes when awarding the Work Related Activity Group without face-to-face prime contracts for the Work programme; and to what medical assessment for (a) all claimants and (b) extent past performance data and assurance ratings people whose primary reason for claiming is a mental formed part of the Department’s assessment of illness. [100703] supplier capability in the preferred bidder selection for the Work Programme. [101163] Chris Grayling: The information requested is not available. Chris Grayling: Work programme was a call-off contract(s) let under a framework, following a mini- Employment and Support Allowance: Birmingham competition. There was/is no scope at mini-competition stage to run a selection procedure; this was carried out Shabana Mahmood: To ask the Secretary of State for during the ERSS framework competition and therefore Work and Pensions how many people in Birmingham, was not/should not be repeated at mini-competition Ladywood constituency will no longer receive contributory stage. employment and support allowance from 1 May 2012 as a result of changes contained in the Welfare Reform Selection criteria focus on the tenderer (i.e. “can they do it”), while award criteria focus on the bid (i.e. “how Act 2012. [100796] will they do it”). When call-off contracts are let under a Chris Grayling: Estimates of the numbers affected by framework agreement, DWP can only use appropriate time limiting contributory employment and support award criteria. DWP must maintain this distinction allowance (ESA) for those in the Work Related Activity between selection criteria and award criteria, or risk Group have been made at a Great Britain level and challenge. breakdowns for particular groups or geographical areas Experience is a selection criterion. Therefore DWP are not available. could not use “past experience” as an award criterion in the WP mini-competition. Employment Schemes The same award criteria have to be applied to all framework providers bidding in the Work programme Simon Hart: To ask the Secretary of State for Work mini-competition in order to comply with case law and and Pensions if he will publish all available data on his the principles deriving from the treaty on the functioning Department’s work experience schemes for the unemployed of the European Union (including the principles of by (a) constituency and (b) company. [99826] equal treatment and non-discrimination). Chris Grayling: I have placed the number of starts on the Voluntary Work Experience scheme by parliamentary John Mann: To ask the Secretary of State for Work constituency in the House of Commons Library. and Pensions whether his Department’s Provider Assurance Team undertook assurance rating reviews of the Flexible We do not collect the information requested in respect New Deal prime contractors who submitted bids for the of companies in a central data base. Gathering the Work programme tender; and if he will publish the relevant data would involve contacting each Jobcentre assurance ratings awarded to each prime contractor. in Great Britain which could be done only at [101164] disproportionate cost.

John Mann: To ask the Secretary of State for Work Chris Grayling: DWP’s Provider Assurance Team and Pensions what the definition is of each of the four undertook reviews on Flexible New Deal providers. The assurance levels which are awarded to welfare-to-work assurance levels awarded to providers cannot be published providers by his Department’s Provider Assurance as they are commercial in confidence. Team. [101156]

Chris Grayling: The four assurance definitions are: Employment Schemes: Bicycles Strong—Governance, risk management and control arrangements provide strong assurance that material Phil Wilson: To ask the Secretary of State for Work risks are identified and managed effectively. and Pensions how many bicycles have been purchased Reasonable—Governance, risk management and control for customers of Jobcentre Plus through the Flexible arrangements provide reasonable assurance that material Support Fund. [100990] risks are identified and managed effectively. Moderate remedial action is required. Chris Grayling: The information requested is not Limited—Governance, risk management and control available. arrangements provide limited assurance that material In the period from 9 April 2011 to 2 March 2012 risks are identified and managed effectively. Remedial there were 55,578 awards made from the Flexible Support action is required. Fund relating to barriers to work (travel costs). These Weak—Governance, risk management and control awards are primarily for travel to work costs until the arrangements provide weak assurance that material risks customer receives their first wage. The majority of these are identified and managed effectively. Urgent and awards relate to public transport and petrol costs, although significant remedial action is required. the purchase of a bicycle may be included where this is 709W Written Answers21 MARCH 2012 Written Answers 710W considered the best option for the customer. However a Invalid Vehicles breakdown of these awards into these categories is not available. Alun Michael: To ask the Secretary of State for Work Employment Schemes: Young People and Pensions if he will make it his policy to (a) give priority to reconsideration cases where the loss of a mobility vehicle is imminent and (b) to extend payment Rushanara Ali: To ask the Secretary of State for of the allowance until after the reconsideration period Work and Pensions what estimate he has made of the in such cases. [101004] number of jobs that will be created by the Youth Contract (a) nationally, (b) in London and (c) in Maria Miller: Prioritising reconsideration cases where Bethnal Green and Bow constituency. [101150] a loss of a Motability vehicle is imminent would be unfair to all other claimants who have requested a Chris Grayling: The Youth Contract will, from April reconsideration. The Department is committed to ensuring 2012, provide nearly half a million new opportunities that all reconsideration cases are dealt with as quickly for young people over the following three years. and efficiently as possible. In addition, it is also improving No estimate has been made of the distribution of its processes to help ensure that decisions are right first impacts from this package of measures by individual time. There is no legislative basis to extend payment of region or constituency. benefit after a disallowance decision has been made. Health and Safety Executive: Redundancy Jobseeker’s Allowance

Ian Lavery: To ask the Secretary of State for Work Ian Paisley: To ask the Secretary of State for Work and Pensions how many health and safety inspectors he and Pensions how many claims were made in 2011 for expects to be made redundant between 2012 and 2015. jobseeker’s allowance; and how many of these were [100998] rejected. [100600]

Chris Grayling: There are currently no plans to make Chris Grayling: Between January and December 2011, any health and safety inspectors redundant between 3,352,758 claims to jobseeker’s allowance were processed financial years 2012-13 and 2014-15. by Jobcentre Plus. Of these 2,905,502 resulted in an award of jobseeker’s allowance. Consequently, 447,256 Ian Lavery: To ask the Secretary of State for Work applications processed lead to a nil award of benefit. and Pensions how many back-office staff in the Health and Safety Executive he expects to be made redundant Lost Property between 2012 and 2015. [100999] Dr Whiteford: To ask the Secretary of State for Work Chris Grayling: The Health and Safety Executive and Pensions what property has been lost or stolen expects that two back office staff will leave the organisation from his Department in the last 12 months; and what on voluntary redundancy terms in 2012-13. There are the estimated cost was of replacement of such currently no other plans to make any other back-office property. [100910] staff redundant between financial years 2012-13 and 2014-15. Chris Grayling: In accordance with guidance from HM Treasury, the Department maintains records of Income certain high-value property that it owns, such as specialist equipment and plant and machinery. In the last year no Mr Nicholas Brown: To ask the Secretary of State for items recorded on the register have been reported as lost Work and Pensions how many households in each local or stolen. authority with (a) one and (b) two adults in work had Lower value items of computer equipment are leased incomes below (i) 60 per cent., (ii) 50 per cent. and (iii) from service providers. In the 12 months ending 40 per cent. of the median in each year between 1995 31 December 2011, 97 items have been reported as lost and the most recent year for which figures are available. or stolen, none of which have been recovered to date. [100877] The Department does not record the replacement cost of those items that are leased from a third party. Chris Grayling: The information requested is not available. The Department requires that all portable computer equipment used to store or process personal data is Information Commissioner encrypted. In cases of theft appropriate action is taken by the Mr Blunkett: To ask the Secretary of State for Work Department to fully investigate the matter, and the and Pensions how many appeals his Department has police are advised as a matter of routine. made to an information tribunal contesting a decision notice of the Information Commissioner in the last New Enterprise Allowance: Birmingham 12 months. [100307] Shabana Mahmood: To ask the Secretary of State for Chris Grayling: The Department for Work and Pensions Work and Pensions what the level of take-up has been has made no appeals to an information tribunal contesting of the (a) new enterprise allowance and (b) new a decision notice of the Information Commissioner in enterprise allowance loan in Birmingham, Ladywood the last 12 months. constituency since its introduction. [101191] 711W Written Answers21 MARCH 2012 Written Answers 712W

Chris Grayling: The Department does not publish We will not reassess any of these claimants until new enterprise allowance statistics at the levels requested. autumn 2013, once the new claims process, which is due Information for Great Britain is published and shows to start in spring 2013, is running as planned. that, for the period January to November 2011, the Remploy number of mentor starts was 6,880, of which 1,740 were in central England. In the same period in Great Britain, Ian Lucas: To ask the Secretary of State for Work and the number of weekly allowance starts was 1,960, of Pensions what discussions his Department has had with which 470 were in central England. Remploy on procurement of goods from its factories. Official statistics are available and can be viewed at: [99874] http://research.dwp.gov.uk/asd/asd1/pwp/pwp_gbw_feb12.pdf The Department does not publish statistics for new Maria Miller: The Department operates a number of enterprise allowance loans. framework arrangements for the supply of goods and services. The call-off of individual arrangements from the framework provides many opportunities for partnership Personal Independence Payment and collaborative working. Many of the contracts that DWP tenders are too large and/or too complex for most Kate Green: To ask the Secretary of State for Work supported businesses to fulfil on their own. Often the and Pensions (1) with reference to his Department’s best way to involve supported businesses in delivering publication, Personal Independence Payment-Policy Government contracts is by encouraging them into the Briefing Note on YoungPeople, whether disabled young supply chain as a sub-contractor to the main provider. people aged 16 to 25 years in 2013 will be one of the last This Department through its Supplier Charter expects groups moved into personal independence payments; first tier suppliers to consider where it is appropriate to [100070] use supported factories or businesses in their supply (2) with reference to his Department’s publication, chain to deliver contracts. This position is monitored Personal Independence Payment (PIP)-Policy Briefing continuously. Note on Young People, what plans are in place to run It is for Remploy to ensure it secures orders and disability living allowance and PIP in parallel for disabled attracts new business. The company continues to work young people turning 16 years of age after 2013; with the public sector to identify procurement opportunities [100071] for its factories. There is currently a framework agreement (3) what support he plans to provide to disabled in place that was set up using the provisions in the UK young people as they move from disability living allowance Public Contract Regulations 2006 which public bodies onto personal independence payments at 16 years of can use to buy goods and services from supported age after 2013. [100072] businesses. This framework includes four sectors: recycling secure and non-secure, document, management and Maria Miller: When new claims to personal independence furniture. Remploy are on the framework for all four payment are introduced from spring 2013, it will be sectors. available to young adults, aged between 16 and 25 whose Following publication of the 2008 Modernisation claims are administered by Bootle Benefits Centre, from Plan of Remploy, a great deal of work was taken areas including Merseyside, North West England, Cumbria, forward across Government (and with the involvement Cheshire and North East England. The remaining network of key stakeholders including local authorities, the devolved of Benefits Centres currently administering new claims Administrations and the trade unions) to increase public for disability living allowance will start to take on new procurement opportunities for supported businesses. claims for personal independence payment from summer This activity raised awareness and increased opportunities 2013. New claims to disability living allowance will not but these have not resulted in sufficient profitable business be accessible as an alternative once it is rolled out to make the majority of Remploy’s businesses financially nationally. viable. We are currently working through the details of the As an example of this, DWP hold a contract with development of personal independence payment but we Hewlett Packard (HP) for IT and Desktop services. are sensitive to the needs of children and young adults Remploy, building on DWP’s existing contractual and will ensure processes are designed with their needs arrangements, forged relations with HP and became a in mind. direct supplier of IT end of life services. Through this agreement Remploy delivers services from its site in Processes will be informed by consultation with disabled Porth to ensure that HP equipment is data-cleansed and young adults and representative organisations. A sub-group that any equipment which still has a useful life is of the Implementation Development Group, who are reconditioned and redeployed within DWP. our primary mechanism for consulting with national and local organisations that represent a broad range of Remploy: Redundancy disabled people, are specifically looking at the issues of children and young people who are approaching their Huw Irranca-Davies: To ask the Secretary of State th 16 birthday. We will use their ideas to inform the for Work and Pensions what support he plans to design of personal independence payment wherever we provide to assist Remploy employees who will be made can. redundant to find new employment. [100708] Mechanisms will be put in place to ensure that there is continuity of payment of disability living allowance Maria Miller: I recognise that announcements regarding while an individual is being assessed for entitlement to the future focus of specialist employment support involve personal independence payment. difficult news for the staff in Remploy factories and 713W Written Answers21 MARCH 2012 Written Answers 714W

I understand that they will have concerns about their (3) of a couple working 22 hours a week on the future. As part of the collective consultation, the Remploy minimum wage living in their own home and paying Board will consider all proposals to avoid redundancy. £1,000 in council tax (a) currently, (b) after changes to A comprehensive support package will be in place to qualifying requirements for working tax credit on 1 April support every disabled member of staff who is displaced 2012 and (c) including out-of-work benefits; [99407] from a Remploy factory. Each affected disabled member (4) of a couple working 23 hours a week on the of staff will receive individualised support for up to minimum wage living in their own home and paying 18 months to help with the transition from Government- £1,000 in council tax (a) currently, (b) after changes to funded sheltered employment to mainstream employment. qualifying requirements for working tax credit on 1 April This package of support is designed to be flexible so 2012 and (c) including out-of-work benefits. [99408] that support can be tailored to meet each individual’s specific needs and will draw on the skills of organisations Chris Grayling: The information requested is as follows. such as Remploy and Jobcentre Plus, but will also On the assumption that this couple has two children: benefit from the experience of organisations such as the (a) Prior to April 2012, this household would be entitled to Employers’ Forum on Disability, and that of local working tax credit and they would have income of around £349 charities and user-led organisations. per week. This includes around £14 a week in council tax benefit. (b) In 2012-13, this household would not be entitled to receive Remploy: Wales working tax credit and would have income of around £281 per week. This includes around £19 a week in council tax benefit. Huw Irranca-Davies: To ask the Secretary of State (c) If this household was out of work their income would be for Work and Pensions whether he has held any around £271 per week. This includes around £19 a week in discussions with the Welsh Government on the future council tax benefit. of Remploy factories in Wales. [100705] The Government are reforming the welfare system through the introduction of universal credit in October Maria Miller: I met with the Minister for Children, 2013. Universal credit is designed to improve financial Education and Lifelong Learning in the Welsh Government work incentives. And in this example the couple will be on 13 March to discuss the Government’s response to around £119 per week better off working 16 hours a the Sayce review and its impacts on the Remploy facilities week compared to being out of work. in Wales. Notes: I also spoke with Minister for Children, Education 1. Part (a) is based on the tax/benefit system in 2011-12. and Lifelong Learning in the Welsh Government on the 2. Parts (b) and (c) are based on the tax/benefit system in morning of 7 March 2012 before the written ministerial 2012-13. statement on Employment Support was tabled, Official 3. Universal credit is based on the tax/benefit system in 2014-15. Report, columns 53-6WS. 4. Income is defined as net earnings in addition to any benefits or I spoke with Minister for Children, Education and tax credits. Lifelong Learning on 22 February 2012 about the Sayce 5. Council tax of £1,000 a year has been equated to approximately review. £19 a week. A meeting was offered with me on 19 January in 6. All numbers have been provided in 2011-12 prices and where Wales but this was cancelled by the Minister for Children, necessary deflated by the GDP Deflator. All numbers have been rounded to the nearest £1. Education and Lifelong Learning. Additionally I wrote to the Minister for Children, Mr Nicholas Brown: To ask the Secretary of State for Education and Lifelong Learning in November 2011 Work and Pensions what the mean annual amount paid inviting him to contribute to the Inter-Ministerial Group in state benefits to each in-work individual in each (a) on Disability Employment. region and (b) local authority area was in the latest I also wrote and spoke to the Minister for Children, period for which figures are available. [100874] Education and Lifelong Learning when the Sayce review was launched last summer. Chris Grayling: The information is provided in the following tables. Social Security Benefits We have included mean amounts for those in work and claiming benefits, and also the mean amount for all Ann Coffey: To ask the Secretary of State for Work those in work whether claiming benefits or not. Estimates and Pensions if he will estimate the total household are based on survey data, and only allow for breakdowns income including working tax credit, child tax credit, to Government office region level, so information at child benefit and council tax benefit (1) of a couple local authority level is not available. working 20 hours a week on the minimum wage living Mean annual amount of income from benefits for benefit units in their own home and paying £1,000 in council tax (a) containing an adult in work, by region currently, (b) after changes to qualifying requirements Region Mean (£) Sample size for working tax credit on 1 April 2012 and (c) including out-of-work benefits; [99405] North East 1,400 604 (2) of a couple working 21 hours a week on the North West 1,600 1,805 minimum wage living in their own home and paying Yorkshire and the Humber 1,400 1,293 £1,000 in council tax (a) currently, (b) after changes East Midlands 1,600 1,136 to qualifying requirements for working tax credit on West Midlands 1,600 1,373 1 April 2012 and (c) including out-of-work benefits; East 1,500 1,477 [99406] London 1,300 1,663 715W Written Answers21 MARCH 2012 Written Answers 716W

Mean annual amount of income from benefits for benefit units Mr Nicholas Brown: To ask the Secretary of State for containing an adult in work, by region Work and Pensions what the cost to the public purse Region Mean (£) Sample size was of benefits paid to individuals who were in work in South East 1,600 2,063 2011. [100875] South West 1,700 1,059 Chris Grayling: The most recent available information is in the tables: England 1,500 12,473 Wales 1,700 737 Estimated expenditure by benefit unit work status 2009-10 Scotland 1,400 2,748 £ million, nominal Northern Ireland 1,600 1,346 Where at least one Where no adults are adultisinwork in work

United Kingdom 1,500 17,304 Attendance 150 4,950 allowance Source: Family Resources Survey 2009-10 Bereavement benefits 400 250 Mean annual amount of income from benefits for benefit units in Carers allowance 400 1,050 receipt of benefits and containing an adult in work, by region Council tax benefit 550 4,150 Region Mean (£) Sample size Disability living 2,750 8,750 allowance North East 2,900 323 Employment and 350 900 North West 3,300 955 support allowance Yorkshire and the Humber 3,000 686 Housing benefit 3,050 16,950 East Midlands 3,100 596 Incapacity benefit 1,450 4,650 West Midlands 3,400 719 Income support 450 7,900 East 3,200 803 Industrial injuries 250 600 London 3,400 767 disablement benefit South East 3,300 1,110 Jobseekers allowance 900 3,800 South West 3,400 599 Pension credit 250 7,900 Retirement pension 10,950 55,950 England 3,300 6,558 Severe disablement 100 800 Wales 3,300 403 allowance Scotland 3,200 1,313 Statutory maternity 2,000 0 pay Northern Ireland 3,300 698 Statutory sick pay 50 0 Winter fuel payment 600 2,150 United Kingdom 3,300 8,972 Total of benefits 24,650 120,750 Notes: showninthistable 1. The Family Resources Survey (FRS) is a nationally representative sample of approximately 25,000 UK private households. 2. Data for 2009-10, the latest year available, were collected between Total benefit — 147,550 April 2009 and March 2010. expenditure 3. The figures from the FRS are based on a sample of households DWP benefit — 2,150 which have been adjusted for non-response using multi-purpose grossing expenditure not factors which align the estimates to Government office region populations included above by age and sex. Estimates are subject to sampling error and remaining Notes: non-response error. 1. Figures are rounded to the nearest £50 million. 4. A benefit unit is defined as a single adult or a married or cohabiting 2. The most recent available data is for 2009-10. couple and any dependent children. An adult is defined as those 3. Figures cover Great Britain and relate only to benefits for which individuals aged 16 or over, unless defined as a dependent child. An DWP is responsible. individual may be defined as a child if aged 16 to 19-years-old and Source: they are not married nor in a civil partnership nor living with a Family Resources Survey and DWP accounting data. partner; and living with parents; and in full-time non-advanced education or in unwaged Government training. 5. Adults in work include all adults who are an employee or self- Unemployment: Poverty employed—both full-time and part-time. This includes those doing unpaid work in their own business or a business that a relative owns. Mr Nicholas Brown: To ask the Secretary of State for 6. A benefit unit has been defined as in receipt of benefits if at least one member of the Work and Pensions how many and what proportion of benefit unit is in receipt of income from at least one benefit. people classified as in poverty were (a) in work and 7. Numbers have been rounded to the nearest £100. (b) unemployed in each year from 1995 until the most 8. The FRS is known to under-record benefit receipt. Please see table recent date for which figures are available. [101222] M6 for more information: http://research.dwp.gov.uk/asd/frs/2009_10/chapter7.pdf 9. Entitlement to some benefits is based on the circumstances of an Chris Grayling: The economic classification of an individual, while others are based on the circumstances of a benefit individual has been revised to be in line with the unit. Therefore it is more appropriate for the analysis requested to be International Labour Organisation economic status presented at benefit unit level rather than at an individual level. classification. This means that no economic status data 10. These results do not adjust benefit incomes to account for family is available for 1994-95 and 1995-96 as the relevant size and composition. In addition the mean can be distorted by benefit units with either very large or very low incomes. information was not collected in the Family Resources Source: Survey for those years. Figures are shown from 1996-97 Family Resources Survey 2009-10 in tables 1 and 2. 717W Written Answers21 MARCH 2012 Written Answers 718W

Table 1: Numbers of individuals living in households with less than 60% of contemporary median equivalised household income, who are in work, are unemployed or in other categories, United Kingdom, 1996-97 to 2009-10 Number of individuals (million) Before Housing Costs After Housing Costs In work Unemployed Other1 All In work Unemployed Other1 All

1996-97 1.7 1.1 8.0 10.8 2.3 1.4 10.3 14.0 1997-98 1.9 0.9 8.1 10.9 2.5 1.1 10.0 13.6 1998-99 1.8 0.8 8.2 10.8 2.5 1.0 10.1 13.6 1999-2000 1.9 0.8 8.1 10.7 2.5 1.0 10.0 13.5 2000-01 1.9 0.7 7.8 10.4 2.6 0.9 9.5 13.0 2001-02 1.8 0.6 7.9 10.4 2.5 0.7 9.6 12.8 2002-03 1.9 0.6 8.0 10.6 2.7 0.8 9.6 13.1 2003-04 2.0 0.6 7.8 10.4 2.7 0.8 9.2 12.6 2004-05 2.0 0.6 7.4 10.0 2.8 0.7 8.6 12.1 2005-06 2.2 0.7 7.5 10.4 3.1 0.8 8.9 12.8 2006-07 2.1 0.6 8.0 10.7 3.0 0.8 9.4 13.2 2007-08 2.3 0.7 8.0 11.0 3.3 0.8 9.3 13.5 2008-09 2.4 0.8 7.7 10.9 3.4 1.0 9.0 13.4 2009-10 2.3 1.0 7.1 10.4 3.3 1.3 8.8 13.5

Table 2: Proportion of individuals living in households with less than 60% of contemporary median equivalised household income, who are in work, unemployed, or in other categories, United Kingdom, 1996-97 to 2009-10 Proportion of individuals (percentage) Before Housing Costs After Housing Costs In work Unemployed Other1 All In work Unemployed Other1 All

1996-97 16 10 74 100 17 10 73 100 1997-98 17 8 74 100 19 8 73 100 1998-99 17 8 76 100 18 7 74 100 1999-2000 18 7 75 100 19 7 74 100 2000-01 18 7 75 100 20 7 73 100 2001-02 18 6 76 100 20 6 75 100 2002-03 18 6 76 100 20 6 74 100 2003-04 19 6 75 100 21 6 73 100 2004-05 20 6 74 100 23 5 72 100 2005-06 21 7 72 100 24 6 69 100 2006-07 19 6 75 100 23 6 71 100 2007-08 21 6 73 100 25 6 69 100 2008-09 22 7 71 100 25 7 67 100 2009-10 22 10 68 100 25 10 66 100 1 The other group consists of pensioners, children and the economically inactive. Notes: 1. These statistics are based on Households Below Average Income (HBAI) data sourced from the Family Resources Survey (FRS). This uses disposable household income, adjusted using modified OECD equivalisation factors for household size and composition, as an income measure as a proxy for standard of living. 2. Net disposable incomes have been used to answer the question. This includes earnings from employment and self-employment, state support, income from occupational and private pensions, investment income and other sources. Income tax payments, National Insurance contributions, council tax/domestic rates and some other payments are deducted from incomes. 3. Figures have been presented on a Before Housing Cost and an After Housing Cost basis. For Before Housing Costs, housing costs are not deducted from income, while for After Housing Costs they are. 4. All estimates are based on survey data and are therefore subject to a degree of uncertainty. Small differences should be treated with caution as these will be affected by sampling error and variability in non-response. 5. The reference period for HBAI figures is the financial year. 6. Figures are for the United Kingdom from 2002-03 onwards. Earlier years are for Great Britain only. 7. Numbers of individuals have been rounded to the nearest 100,000 and percentages to the nearest whole percentage point. 8. The economic classification of an individual has been revised to be in line with the International Labour Organisation economic status classification. This means that no economic status data is available for 1994-95 and 1995-96 as the relevant information was not collected in the Family Resources Survey for those years. 9. The total of the in work and unemployed populations does not match the total in low income for that year. The remainder of the population in low income in each year presented is made up of those classified as economically inactive, or who are pensioners or children. 10. Further statistics on the population in low income can be found in the National Statistics report Household Below Average Income available at: http://research.dwp.gov.uk/asd/index.php?page=hbai Source: FRS 719W Written Answers21 MARCH 2012 Written Answers 720W

FOREIGN AND COMMONWEALTH OFFICE Mr Lidington: I last met Iceland’s Foreign Minister, Mr Ossur Skarphéinsson, during the London Conference Afghanistan on Libya in March 2011, when I reiterated the UK Government’s strong support for Iceland’s EU accession. We believe that the process of EU accession offers the Paul Flynn: To ask the Secretary of State for Foreign most effective means to help resolve at the EU level and Commonwealth Affairs what assessment he has challenging areas, such as fisheries, finance and the made of the threat to UK national security arising environment (including whaling). from the activities of the Taliban. [101239] Practical support to help Iceland prepare for EU Alistair Burt: The Government’s considered assessment membership is provided through the EU’s Instrument remains that without the current presence of international for Pre-Accession Assistance (IPA), which provides targeted forces in Afghanistan, al-Qaeda, and those willing to funding to all candidate countries to ensure they are offer them sanctuary, would be able to re-establish ready to take on the responsibilities of EU membership themselves and the threat of terrorism from the region, upon accession. The total value of the Instrument for including to the UK, would rise. Iceland is approximately ¤12 million per year, of which the UK contributes approximately ¤1.5 million. While Belarus Iceland is already highly aligned to much of the EU acquis, the Instrument is valuable in helping Iceland to tackle specific niche areas that remain outstanding. Daniel Kawczynski: To ask the Secretary of State for Iceland also contributes its own funding to complement Foreign and Commonwealth Affairs if he will take funds provided under the IPA. steps to enable opposition groups from Belarus to meet hon. Members. [101007] Information Commissioner Mr Lidington: The Secretary of State for Foreign and Commonwealth Affairs, my right hon. Friend the Member Mr Blunkett: To ask the Secretary of State for Foreign for Richmond (Yorks) (Mr Hague), and I met Belarusian and Commonwealth Affairs how many appeals his opposition figures in London during a visit organised Department has made to an information tribunal contesting by the Foreign and Commonwealth Office between 13 a decision notice of the Information Commissioner in and 15 December 2011. The delegation met a number of the last 12 months. [100300] hon. Members, along with the International Offices of a number of political parties, and representatives of the Mr Lidington: There has been a significant rise in the Westminster Foundation for Democracy.They also attended number of cases involving the Foreign and Commonwealth the launch of the All-Party Parliamentary Group on Office (FCO) at the Information Tribunal over the last Belarus. 12 months. In the majority of cases requesters appealed We have no firm plans for a repeat visit at this time. against the Information Commissioner’s (ICO) Decision However, as 1 told the opposition groups, the UK will Notices and the FCO was joined as a party to the continue to pursue all means possible to promote proceedings and was therefore obliged to take up the democracy, human rights and the rule of law in Belarus. case. In four cases the FCO appealed the ICO’s Decision. Democratic Republic of Congo In one of these cases, the ICO agreed to withdraw its original decision to require disclosure. In the second, Ian Lucas: To ask the Secretary of State for Foreign the original Decision Notice of the ICO was replaced and Commonwealth Affairs pursuant to the answer of by the Tribunal on the basis of a compromise agreement 5 March 2012, Official Report, column 547W, on between the FCO and the ICO. In the third, the Tribunal Democratic Republic of Congo: elections, if he will agreed with the FCO that some of the information place a copy of the mission report in the Library. which the ICO had sought to be disclosed should be [101148] retained. The fourth case is due to be heard at the end of this month. Mr Bellingham: The mission report from the US National Democratic Institute and the International Libya Foundation for Electoral Systems is not owned by the UK Government and will therefore not be placed in the Ian Lucas: To ask the Secretary of State for Foreign Library. We will continue to work with key partners to and Commonwealth Affairs what steps the Government ensure that there is a thorough and transparent review is taking on the desecration of war graves in Libya. of the electoral process and that necessary improvements [101005] are made. Alistair Burt: British embassy officials immediately Iceland visited the sites on 25 February and raised this issue with the Libyan Ministry of Foreign Affairs and the Daniel Kawczynski: To ask the Secretary of State for Benghazi Chief of Police, making clear our outrage, the Foreign and Commonwealth Affairs what discussions need to provide security to the sites and conduct thorough he has had with his Icelandic counterpart on Iceland’s investigations into the attacks. Our ambassador also possible membership of the EU; and what support he raised our concerns with the Deputy Foreign Minister, has offered to the government of Iceland on the Minister of Interior and the offices of NTC Chairman preparation for EU membership. [101000] Abdul Jalil and Prime Minister al-Kib. In response to 721W Written Answers21 MARCH 2012 Written Answers 722W these incidents, Foreign Minister Khayyal and Chairman The UK also provides practical and technical support, Abdul-Jalil made statements condemning the attacks, including to the Office of the Quartet Representative, to and the Transitional Government published a statement reinforce the prospects for peace, economic development on 28 February, describing the damage as: and stability in the region. “unethical, irresponsible and criminal” and making clear that the Libyan Government: Palestinians “severely denounces such shameful acts and vows to find and prosecute the perpetrators according to Libyan Law”. The Libyan authorities have instructed the police to Nadhim Zahawi: To ask the Secretary of State for make regular patrols and station police outside the Foreign and Commonwealth Affairs (1) what his policy cemeteries to ensure no further attacks occur. is on the application of the Quartet principles to a Hamas-Fatah unity government; [R] [100411] I recently raised this again with the Deputy Foreign Minister Abdul Aziz and stressed the importance of a (2) what reports he has received on Hamas’ Charter; thorough investigation. He gave further assurances that and what assessment he has made of the likely effect the Libyan Government shared our views on the attacks the charter will have on the Middle East peace process; and would continue to investigate these crimes. [R] [100414] (3) what assessment he has made of the likely effect Mass Media of Hamas and Fatah merging their security forces on co-ordination between Palestinian Authorities and the authorities in Israel on security matters. [R] [100415] Dr Whiteford: To ask the Secretary of State for Foreign and Commonwealth Affairs what media monitoring services his Department has purchased in each of the Alistair Burt: We continue to follow developments on last five years. [100895] Palestinian reconciliation closely, including recent meetings between Hamas and Fatah officials, and discussions that may have implications for the two organisations’ Mr Lidington: The Foreign and Commonwealth Office charters and their future co-operation on security issues. has purchased the following media monitoring services: We have been clear that any new Palestinian authority, 2007 including any technocratic government formed to prepare Central Office of Information (COI) Media Monitoring Unit for elections, must be composed of figures committed press and media summaries; Precise Media press cuttings to the principles set by President Abbas in Cairo in May 2008 2011; uphold the principle of non-violence; be committed COI Media Monitoring Unit press and media summaries; to a negotiated two-state solution; and accept previous Precise Media press cuttings agreements of the Palestinian Liberation Organisation. 2009 We will judge any future Palestinian Government by their actions and their readiness to work for peace. The COI Media Monitoring Unit press and media summaries; Precise Media press cuttings; Kantar media monitoring service Palestinian Security forces should remain under the command of the Palestinian Authority. 2010 In the context of the dramatic changes in the wider COI Media Monitoring Unit press and media summaries; Precise Media press cuttings; Durrants press cuttings (July onwards); middle east, we continue to encourage all groups to Kantar media monitoring service espouse the principle of non-violence and to join mainstream democratic politics, thereby contributing to 2011 peace and stability in the region. If Hamas were to do COI Media Monitoring Unit press and media summaries; so, this would constitute a significant step towards Precise Media press cuttings; Durrants press cuttings; Kantar meeting the Quartet principles. media monitoring service. Overall costs have reduced due to a drive to achieve greater efficiency and a move from print to electronic Tunisia delivery. Ian Lucas: To ask the Secretary of State for Foreign Middle East and Commonwealth Affairs what steps the UK Government is taking to increase trading links with Heather Wheeler: To ask the Secretary of State Tunisia. [100276] for Foreign and Commonwealth Affairs what support the Government is providing for the renewal of Alistair Burt: The UK has worked hard to help secure direct peace talks between Israel and the Palestinian an EU mandate to negotiate a Deep and Comprehensive Authority. [100458] Free Trade Area (DCFTA) with Tunisia. The DCFTA will bring greater integration with the EU single market Alistair Burt: The UK continues to make regular high as well as regulatory convergence. The EU has also level representations to the Government of Israel and re-launched discussions on the EU-Tunisia Agriculture to the Palestinians on the urgency of making progress Agreement. We are also focused on helping UK companies towards a two-state solution. We view as a positive identify new opportunities within the Tunisian market. development the efforts of King Abdullah of Jordan UK Trade and Investment held an event last week and Jordanian Foreign Minister, Nasser Judeh, to bring “Arab Spring One year on: Business opportunities in the parties together under the framework of the Quartet North Africa”, which generated a good level of interest statement of 23 September 2011. in Tunisia. 723W Written Answers21 MARCH 2012 Written Answers 724W

I met with the Tunisian Minister for Vocational Training Mr Robathan: I refer the right hon. Member to the and Employment Abdelwaheb Matar in January.Mr Matar answer I gave on 13 March 2012, Official Report, column sought co-operation with the UK in all major fields 138W,to the hon. Member for North Durham (Mr Jones). including investment and vocational training and I assured Mr Matar of UK support. Armed Forces: Life Insurance Through our Arab Partnership Fund, we have provided approximately £1.2 million of support in Tunisia so far, Mr Jim Murphy: To ask the Secretary of State for including for political participation, public voice, good Defence what compensatory payments are made by (a) governance, and economic reform. This support will his Department and (b) other Government Departments help build a more stable political and economic to bereaved service families. [98886] environment, which will in turn create a better enabling environment for the creation of new and strengthened Mr Robathan [holding answer 8 March 2012]: A list trading links with Tunisia. The Department for of all compensation and benefits payable in respect of a International Development is also funding the African member of the armed forces who has died as a result of Development Bank in Tunis to co-ordinate donor support service can be found at: for private sector development in the middle east and http://www.veterans-uk.info/pensionscompensation.htm North Africa region. We expect to further increase programme funding for Tunisia in the next financial Armed Forces: Married People year. Mr Jim Murphy: To ask the Secretary of State for Defence how many members of the armed forces were married when they joined the forces. [101147] DEFENCE Mr Robathan: I refer the right hon. Member to the answer I gave to the hon. Member for North Durham Armed Forces: Housing (Mr Jones) on 13 March 2012, Official Report, column 133W. Mr Jim Murphy: To ask the Secretary of State for Defence (1) what the armed forces housing budget was Armed Forces: Post-traumatic Stress Disorder in each year from 2000-01 to 2011-12; and what the budget is projected to be in 2012-13; [101146] Mark Lancaster: To ask the Secretary of State for (2) how many people have lived in service married Defence what arrangements are in place to support living quarters for a total of eight years, in each year military personnel experiencing post-traumatic stress since 2000. [101185] disorder. [100402]

Mr Robathan: I refer the right hon. Member to the Mr Robathan: The Ministry of Defence (MOD) takes answer I gave to the hon. Member for North Durham the issue of mental health very seriously, and we will (Mr Jones) on 13 March 2012, Official Report, column continue to offer a high standard of treatment and care 135W. to those who need it. Service personnel with post-traumatic stress disorder will normally be referred to and treated Mr Jim Murphy: To ask the Secretary of State for in one of our military Departments of Community Defence (1) how many married couples have been Mental Health, which offer a wide range of psychiatric housed in service married living quarters in each year and psychological treatments, including medication, psychological therapies, and environmental adjustment since 2000; [101182] where appropriate. In-patient care, when necessary, is (2) how many service married living quarters there provided in specialised psychiatric units under contract are in each (a) region, (b) local authority area and (c) with the NHS. Throughout the treatment process, personnel parliamentary constituency. [101183] and their families are offered assistance and support from a range of welfare, regimental and charitable groups. Mr Robathan: I refer the right hon. Member to the In accordance with the recommendations of my answer I gave to the hon. Member for North Durham hon. Friend the Member for South West Wiltshire (Mr Jones) on 13 March 2012, Official Report, column (Dr Murrison)’s ‘Fighting Fit’ Report, published in 134W. October 2010, additional resources are also being allocated by MOD and the Department of Health to improve the Mr Jim Murphy: To ask the Secretary of State for mental health care provided to both serving and ex-service Defence how many couples have lived in service personnel. Key among these are the commissioning of married living quarters for longer than eight years, in an extra 30 whole-time equivalent NHS mental health each year since 2000. [101184] professionals to deliver improved access to NHS mental health services to veterans, and the launch in March last Mr Robathan: I refer the right hon. Member to the year of a professional 24-hour helpline for current and answer I gave to the hon. Member for North Durham ex-service personnel and their families. Additionally, we (Mr Jones) on 13 March 2012, Official Report, column are currently trialling use by the service community of 134W. the Big White Wall, an online early intervention service for people in psychological distress. We have launched Mr Jim Murphy: To ask the Secretary of State for an e-learning package to help civilian GPs understand Defence what the average cost per annum is of each the needs of the military, their families and ex-service service married living quarters. [101186] personnel. And we are introducing mental health 725W Written Answers21 MARCH 2012 Written Answers 726W assessments into routine service medical examinations Reserve Forces: South East and into discharge medicals. The mental health assessments are currently being introduced on a regional basis. Gareth Johnson: To ask the Secretary of State for Defence how many (a) men and (b) women there were Freedom of Information in the reserve forces in (i) Dartford constituency, (ii) Kent and (iii) the south-east in the latest period for Mr Blunkett: To ask the Secretary of State for Defence which figures are available. [100422] how many appeals his Department has made to an information tribunal contesting a decision notice of the Mr Robathan: The requested information is not available Information Commissioner in the last 12 months. in the format requested. However, I refer the hon. [100309] Member to the answer I gave on 6 March 2012, Official Report, column 648W,to the hon. Member for Houghton Mr Robathan: One. and Sunderland South (Bridget Phillipson). I can further advise that of the 330 full-time reserve service personnel Katrice Lee identified as employed in the south-east region, 290 are men and 40 are women. Mr Iain Wright: To ask the Secretary of State for Defence pursuant to the answer of 22 February 2012, Veterans: Staffordshire Official Report, columns 828-9W, on Katrice Lee, how many police officers and other resources are assigned Chris Williamson: To ask the Secretary of State for to the open case; and if he will make a statement. Defence how the memorial to British nuclear test [100681] veterans in Staffordshire was funded. [100768]

Mr Robathan [holding answer 20 March 2012]: 18 Mr Robathan [holding answer 20 March 2012]: The service police personnel are assigned to the investigation British Nuclear Test Veterans Association memorial at into the disappearance of Katrice Lee. All are working the National Arboretum in Staffordshire was privately on the case full-time. The team consists of a senior funded. investigating officer, his deputy and five investigators from the Royal Military Police Special Investigation War Pensions Branch. These are supported by 11 Royal Military Police personnel who are using the Home Office Large Chris Williamson: To ask the Secretary of State for Major Enquiry System (HOLMES), which is a Defence what the cost to the public purse has been of management tool used during major police inquiries to legal action relating to war pensions for nuclear test handle very large quantities of data. The investigation veterans. [100772] team also has access to a wide range of additional Royal Military Police and civilian police resources, including Mr Robathan: In the current group of ongoing nuclear specialist advisers from the National Policing Improvement test veterans war pensions appeals the Ministry of Defence Agency. has to date been notified of bills as follows: I wrote to the hon. Member on this issue on 7 March 2012. £ Solicitors 153,273 Mass Media Barristers 167,188 Experts 34,987 Dr Whiteford: To ask the Secretary of State for Other costs 96,511 Defence what media monitoring services his Department Total 451,959 has purchased in each of the last five years. [100887] These figures exclude VAT and do not include the Mr Robathan: During the last five years the Ministry cost of any associated MOD resourcing or obtaining of Defence has used the Media Monitoring Unit (MMU) security clearances for individuals involved in the cases. within the Central Office of Information and subscribed The Treasury Solicitor’s Department, for reasons of to a press cuttings service. Government accounting, charges for its services on a MMU can provide services such as media briefings, cost recovery basis. broadcast summaries and news alerts for Departments. We are awaiting a hearing date to be confirmed for these appeals. We remain keen to work with the tribunal Navy: Reserve Forces and appellants with a view to ensuring that costs relating to all war pensions appeals are proportionate and kept Mr Doran: To ask the Secretary of State for Defence to a minimum. what discussions he has had on the future of the Aberdeen University Royal Navy Unit and its Royal Work Experience Navy Reserves. [100832] Chi Onwurah: To ask the Secretary of State for Mr Robathan [holding answer 19 March 2012]: No Defence pursuant to the answer of 24 May 2011, decision has yet been made; the potential relocation of Official Report, column 531W, on departmental work Aberdeen University Royal Navy Unit (AURNU) is experience, how many people (a) worked as an intern, part of an ongoing study to ensure optimisation of (b) undertook a work experience placement and (c) available fleet assets while ensuring value for money. worked as a volunteer in his Department in accordance 727W Written Answers21 MARCH 2012 Written Answers 728W with the hiring criteria set out in that answer in the last £000 12 months for which data are available; and how many such people were employed other than according to 200820092010 those criteria. [100730] Centro 537.1 541.7 546.4 Birmingham 180.1 180.2 181.2 Mr Robathan: The Ministry of Defence (MOD) provided England 11,324.2 11,541.1 11,746.5 five places on the summer diversity internship scheme and four two-week Whitehall Internships as part of the The National Travel Survey 2010 estimates that in Social Mobility Strategy in the last 12 months. Information England 78% of eligible older people hold an England on the number of people who may have undertaken national bus pass. other internships or work experience placements in the MOD in the last 12 months is not held centrally and Bus Services: Concessions could be provided only at disproportionate cost. The MOD does not offer opportunities to volunteer in the Department. Gareth Johnson: To ask the Secretary of State for Transport what proportion of people eligible for a free bus pass claimed their entitlement in (a) England, (b) Kent and (c) Dartford in the last year for which figures are available. [100462] TRANSPORT Norman Baker: New statistics derived from the Bus Services: Birmingham Department for Transport travel concessionary survey show that an estimated 9.9 million eligible older and Shabana Mahmood: To ask the Secretary of State disabled people held a concessionary bus pass in England for Transport how much her Department spent on in 2011-12. There is no reliable information at local concessionary bus travel in Birmingham Ladywood authority level on the number of passes on issue. constituency in each year since the scheme was introduced. Population estimates from the Office for National [101287] Statistics show that in mid 2010, the latest period for which figures are available, there were 18,900 older Norman Baker: There is no breakdown available by people resident in Dartford, 354,500 resident in Kent parliamentary constituency.From 1 April 2008 to 31 March and 11.7 million resident in England who were of the 2011, the Department for Transport provided Special eligible age for a bus pass. The National Travel Survey Grant funding to local authorities to cover the extra 2010, estimates that in England, 78% of eligible older costs of the England-wide statutory off-peak bus travel people hold an England national bus pass. The Department concession for older and disabled people, which was does not hold information on the number of eligible introduced on 1 April 2008. The Special Grant funding disabled people. allocated to Centro, the West Midlands Integrated Transport The number of concessionary passenger journeys on Authority, is shown in the following table. local bus services in England from 2007-08 to 2010-11, can be found at £ million 2008-09 2009-10 2010-11 http://www.dft.gov.uk/statistics/tables/bus0105/

Centro 12.353 12.644 12.993 Martin Horwood: To ask the Secretary of State for England 212.0 217.0 221.0 Transport what her policy is on the use of bus passes by disabled people before 9.30 am; and if she will make a In England, until 31 March 2011, the Department for statement. [101237] Transport’s Special Grant funded a portion of the statutory concession, but the majority of funding was Norman Baker: The statutory minimum concession provided by the Department for Communities and Local gives free off-peak travel on local buses in any part of Government (DCLG) through Formula Grant. From 1 England to eligible older and disabled people. Off-peak April 2011, all funding is through DCLG’s Formula is defined as 9.30 am to 11pm Monday to Friday and at Grant. all times at weekends and on bank holidays. Shabana Mahmood: To ask the Secretary of State for Travel concession authorities in England may offer Transport how many pensioners claimed free bus travel additional discretionary travel concessions to their older in Birmingham, Ladywood constituency in each year and disabled residents, including travel in the morning since the scheme was introduced. [101295] peak, if they choose to do so. Such enhancements are not part of the statutory minimum and must be funded from an authority’s own resources. Norman Baker: The Department does not hold this information in respect of individual parliamentary constituencies. Driving Under Influence Population estimates from the Office for National Statistics show the numbers of people of eligible age for Paul Blomfield: To ask the Secretary of State for an England national bus pass, for Centro, the West Transport what (a) correspondence and (b) meetings Midlands Integrated Transport Authority, and for her Department has had with the Department for Birmingham, from mid-year 2008 to mid-year 2010 as Business, Innovation and Skills on changes to the drink provided in the following table: drive rehabilitation scheme. [101510] 729W Written Answers21 MARCH 2012 Written Answers 730W

Mike Penning: Driving Standards Agency (DSA) officials Number Percentage have not met their counterparts at the Department for of Number of Business, Innovation and Skills (BIS) to discuss changes contracts Number of Total contracts to the drink drive rehabilitation scheme. Agency awarded of small medium SMEs awarded

DSA has corresponded with BIS officials as part of DFT(c) 176 14 5 19 10.80 the pre-publication clearance process for consultation DSA 31 8 3 11 35.48 papers and impact assessments. DVLA 44 4 4 8 18.18 GCDA 0 0 0 0 0.00 High Speed 2 Railway Line HA1 1,697 0 0 411 24.22 MCA1 189 0 0 39 20.63 Andrea Leadsom: To ask the Secretary of State for VCA 5 4 0 4 80.00 Transport if she will ensure that the terms of the HS2 VOSA 94 20 4 24 25.53 compensation package do not adversely affect community Total 2,236 50 16 516 23.08 cohesion by providing different benefits for those living 1 HA and MCA are unable to a breakdown between small and in the same area. [100514] medium

Justine Greening [holding answer 20 March 2012]: The Government are committed to ensuring that any Railways: Electrification HS2 compensation package deals fairly and consistently with local residents and businesses. Jonathan Edwards: To ask the Secretary of State for Transport pursuant to the answer of 31 January 2012, McKinsey and Company Official Report, column 568W, on railways: Wales, what discussions she has had with Welsh Ministers regarding electrification of the Valleys Lines; and who will be Mr Thomas: To ask the Secretary of State for Transport responsible for making a decision and statement regarding how much her Department paid to McKinsey and funding of any project relating to the feasibility study. Company in (a) 2010-11 and (b) 2011-12; and if she [101141] will make a statement. [100569] Mrs Villiers: The Secretary of State for Transport, Norman Baker: To the best of my knowledge, the my right hon. Friend the Member for Putney (Justine Department for Transport has had no spend with McKinsey Greening), is in ongoing discussions with Welsh Ministers and Company in 2010-11 and 2011-12. regarding the proposed electrification of the Valleys Lines. If electrification is funded through the High Moor Vehicles: Imports Level Output Specification for the railway, any decision and statement regarding funding will be a matter for the Sheila Gilmore: To ask the Secretary of State for Secretary of State for Transport. Transport (1) if she will review her policy relating to vehicle imports and the differential treatment of UK and non-EU citizens; [100389] Railways: North West (2) if she will review her policy relating to vehicle imports to allow an adjustment period for UK citizens Jonathan Reynolds: To ask the Secretary of State for in which their imported vehicle can be driven on public Transport what assessment she has made of the likely roads before it has passed the Individual Vehicle benefits that the Northern Hub proposal could provide Approval test. [100390] to residents of Hyde, Stalybridge and Mossley. [101516]

Mike Penning: There are no plans to review current Mrs Villiers: The Department for Transport has not policy. International agreements require us to permit carried out an assessment of the likely benefits of the the temporary use, by a foreign citizen, of a foreign- Northern Hub proposal specifically to residents of Hyde, registered vehicle for a limited time (a maximum of six Stalybridge and Mossley. However, the scheme will months in any 12-month period), whilst UK residents increase the capacity and capability of the rail network importing a vehicle to the UK must register the vehicle in and around Manchester to the benefit of rail users as with DVLA within 14 days of its entry. The regulations a whole. permit an unregistered vehicle to be driven to a pre-booked IVA test. Road Works: Fees and Charges Procurement Meg Munn: To ask the Secretary of State for Transport Tom Greatrex: To ask the Secretary of State for (1) what assessment she has made of the recommendations Transport what proportion of contracts issued by (a) of the report by the Transport Research Laboratory on her Department and (b) agencies for which she is a charge structure for trenching in the highway; and if responsible were rewarded to small and medium-sized she will make a statement; [100878] enterprises in the latest period for which figures are (2) if she will introduce a charge structure to allow available. [100367] highway authorities to recover some of the cost of future maintenance of roads from utility companies Norman Baker: The latest period for which figures where they have dug up highways and reinstated the are available is January to December 2011. surface. [100879] 731W Written Answers21 MARCH 2012 Written Answers 732W

Norman Baker: The Department sympathises with The completion of pre-release reviews will be monitored concerns expressed by local authorities about the issues as part of the performance management arrangements addressed in the TRL Report, and with the view that which accompany the introduction of the National “the polluter should pay”. However, I am yet to be Drug Treatment Monitoring System across all English persuaded that statutory powers about resurfacing and prisons and young offender institutions from April recovering long-term damage costs would offer a 2012. proportionate and workable solution that creates the Any prisoner can self refer for drug treatment at any right incentives for utilities to reduce future damage. point during an episode of imprisonment, including I am concerned that these costs may simply feed immediately prior to release. National clinical guidelines through into utility bills rather than changing utility give clinicians information on how they can undertake companies’ behaviour for the better. It would therefore pre-release assessment and treatments. still be households and businesses who ultimately bear Subject to legislation, the National Health Service the costs of long-term damage, whether through taxation Commissioning Board (NHSCB) will be responsible for (as now) or through utility bills (as it would be under the future commissioning of health services for those in the TRL proposals). custody. The NHSCB will assume commissioning The proposal would also be inconsistent with the responsibilities for prison substance misuse services on coalition Government’s commitment to reduce regulatory behalf of Public Health England and will work closely costs on business, and in particular the principle that with local Drug and Alcohol partnerships to ensure a any new regulatory costs affecting business should be cohesive approach at a local level. accompanied by an offsetting deregulatory measure. Rather than imposing a levy that would create a new regulatory burden and result in higher utility bills, the General Practitioners: Training Government believe the more pragmatic approach is to reduce long-term damage costs through a greater focus on high-quality reinstatements. Oliver Colvile: To ask the Secretary of State for I do not propose to bring forward legislative proposals Health if he will take steps to ensure that members of in this area in the foreseeable future, but the Department GP Commissioning boards are trained on mental health will continue to keep the position under review through issues. [100843] its ongoing engagement with the Highway Authorities and Utilities Committee, ADEPT and other interested Paul Burstow: The main function of a governing parties. body of a Clinical Commissioning Group (CCG) will be to ensure that the CCG has appropriate arrangements in place to ensure they exercise their functions effectively, efficiently and economically and in accordance with HEALTH generally accepted principles of good governance. Diabetes: Health Services Individual members of the CCG governing body will bring different perspectives, drawn from their different professions, roles, background and experience (and may Keith Vaz: To ask the Secretary of State for Health include mental health perspectives). what steps he is taking to address any discrepancies between figures from the National Diabetes Audit and As commissioners, CCGs will need to have strong the Quality and Outcomes Framework achievement relationships with a range of health partners. This will data. [101133] provide them with access to information, advice and knowledge to help them make the best possible Paul Burstow: Departmental officials are working commissioning decisions. The Health and Social Care with the Health and Social Care Information Centre to Bill therefore places a duty on CCGs to obtain appropriate understand the reasons for the differences between figures advice from a broad range of professionals, such as mental from both data sources. Variation in figures could be health specialists, as well as actively involving patients ascribable to differences in scope and data assessment and carers to bring their experience into commissioning methodology.We will work with stakeholders to understand services. CCGs will also access multidisciplinary advice the reasons for the differences and to identify what from clinical networks and senates, on the design and needs to be done as a result. delivery of services.

Drugs: Prisons Lost Property Keith Vaz: To ask the Secretary of State for Health whether drug addiction assessments are carried out on Dr Whiteford: To ask the Secretary of State for prisoners at the end of their time in prison. [100798] Health what property has been lost or stolen from his Department in the last 12 months; and what the estimated Paul Burstow: Drug assessments are not routinely cost was of replacement of such property. [100918] carried out on all prisoners prior to release. However, all prisoners who have been engaged in structured drug treatment while in custody should undergo a pre-release Mr Simon Burns: The following table outlines the review by the prison substance misuse team, primarily Department’s property losses and thefts from 1 February to ensure that the necessary continuity of care arrangements 2011 to 31 January 2012 and is the latest information are in place. available. 733W Written Answers21 MARCH 2012 Written Answers 734W

Departmental losses and thefts 1 February 2011 to 31 January 2012 NHS CfH losses and thefts 1 February 2011 to 31 January 2012 Estimated Estimated Items Numbers replacement cost (£) Items Numbers Replacement cost

Laptops 10 7,909.32 GPRS 5 250.00 Desktop computer 1 1,150.32 Mobile devices 19 4,484.00 Blackberries 32 4,675.00 Mobile telephones 10 370.00 Mobile telephones 4 277.60 Laptops 21 22,512.00 Remote access 7 105.00 Remote access tokens 4 140.00 tokens SIM only 10 0.00 3G cards 4 1,031.56. Total 69 27,756.00 Encryption keys 1 1,457.00 and server rails Stationery kit 1 353.00 Lung Cancer: Health Services shoulder bag Total 16,958.80 Tracey Crouch: To ask the Secretary of State for Health what the average length of stay of lung cancer patients following an emergency admission to hospital NHS Connecting for Health (NHS CfH) is part of was in (a) England, (b) Medway Primary Care Trust the Department’s Informatics Directorate. However, and (c) West Kent Primary Care Trust in each of the there are a number of fundamental differences between last three years. [101139] the Department and NHS CfH, including suppliers and equipment used. It is therefore deemed appropriate to Paul Burstow: Information on the mean and median display the figures for NHS CfH losses and thefts length of stay, in days, for emergency admissions to separately to the rest of the Department. hospital for England, Medway Primary Care Trust (PCT) The following table outlines their property losses and and West Kent PCT of residence for the years 2008-09 thefts from 1 February 2011 to 31 January 2012. to 2010-11 is provided in the following table:

Mean1 and median2 length of stay (in days) for emergency admissions3 with a primary diagnosis4 of lung cancer for England and selected PCTs (of residence)5 for the years 2008-09 to 2010-116 Days 2008-09 2009-10 2010-11 Mean length of Median length Mean length of Median length Mean length of Median length stay of stay stay of stay stay of stay

England 11.3 8 11.2 7 10.7 7 Medway PCT 11.8 8 10.0 7 9.4 5 West Kent PCT 11.9 8 10.2 7 10.7 7 1 Mean length of stay—the average length of stay based on the difference between the admission date and discharge date in days of each spell, summed for all spells and divided by the number of spells where a valid duration has been recorded. This excludes day cases and periods of care where the length of stay is less than one full day. 2 Median length of stay - the middle value of all the valid lengths of stay when placed in ascending order. 3 Emergency admissions—the count of admission episodes with an admission method indicating the admission was an emergency admission method code: 21 = Emergency: via Accident and Emergency (A&E) services, including the casualty department of the provider 22 = Emergency: via general practitioner (GP) 23 = Emergency: via Bed Bureau, including the Central Bureau 24 = Emergency: via consultant out-patient clinic 28 = Emergency: other means, including patients who arrive via the A&E department of another health care provider. 4 Primary diagnosis—the primary diagnosis is the first of up to 20 (14 from 2002-03 to 2006-07 and seven prior to 2002-03) diagnosis fields in the Hospital Episode Statistics (HES) data set and provides the main reason why the patient was admitted to hospital. ICD-10 Codes used: C34.0 Malignant neoplasm of main bronchus C34.1 Malignant neoplasm of upper lobe, bronchus or lung C34.2 Malignant neoplasm of middle lobe, bronchus or lung C34.3 Malignant neoplasm of lower lobe, bronchus or lung C34.8 Malignant neoplasm of overlapping lesion of bronchus and lung C34.9 Malignant neoplasm of bronchus or lung, unspecified C78.0 Secondary malignant neoplasm of lung 5 SHA/PCT of residence—the strategic health authority (SHA) or primary care trust (PCT) containing the patient’s normal home address. This does not necessarily reflect where the patient was treated as they may have travelled to another SHA/PCT for treatment. 6 Assessing growth through time—HES figures are available from 1989-90 onwards. Changes to the figures over time need to be interpreted in the context of improvements in data quality and coverage (particularly in earlier years), improvements in coverage of independent sector activity (particularly from 2006-07) and changes in NHS practice. For example, apparent reductions in activity may be due to a number of procedures which may now be undertaken in out-patient settings and so no longer include in admitted patient HES data. HES are compiled from data sent by more than 300 NHS trusts and PCTs in England and from some independent sector organisations for activity commissioned by the English NHS. The NHS Information Centre for health and social care liaises closely with these organisations to encourage submission of complete and valid data and seeks to minimise inaccuracies. While this brings about improvement over time, some shortcomings remain.. Activity includes in English NHS Hospitals and English NHS commissioned activity in the independent sector. Source: Hospital Episode Statistics (HES), Health and Social Care Information Centre 735W Written Answers21 MARCH 2012 Written Answers 736W

Tracey Crouch: To ask the Secretary of State for Paul Burstow: The following table sets out the percentage Health what the percentage change in spending on lung of change in spending on lung cancer for England, cancer treatment was in (a) England, (b) Medway Medway Primary Care Trust (PCT) and West Kent Primary Care Trust and (c) West Kent Primary Care PCT, in each of the last three years. Trust in each of the last three years. [101140]

2007-08 2008-09 Percentage 2009-10 Percentage 2010-11 Percentage (£000) (£000) Change (£000) Change (£000) Change

England Level Data 232,347 240,259 3.41 276,125 14.93 181,376 -34.3 Medway Primary 581 706 21.51 778 10.27 875 12.4 Care Trust West Kent Primary 2,388 2,418 1.26 2,578 6.62 2,464 -4.4 Care Trust Notes: 1. In order to improve data quality, continual refinement have been made to the programme budgeting data calculation methodology since the first collection in 2003-04. The underlying data which support programme budgeting data are also subject to yearly changes. This was particularly significant in 2010-11. For instance, the England level expenditure on lung cancer has fallen by 34% but this is due to changes in the collection methodology. The amount of expenditure allocated to the ’Other Miscellaneous’ category increased substantially in 2010-11, which means less expenditure is allocated to the individual programme categories and subcategories. Caution is therefore advised when using programme budgeting data to draw conclusions on change in PCT spending patterns between years. 2. Figures include expenditure across all sectors. Disease specific expenditure do not include expenditure on prevention, or general practitioner expenditure, but do include prescribing expenditure. 3. Calculating programme budgeting data is complex and not all health care activity or services can be classified directly to a programme budgeting category or care setting. When it is not possible to reasonably estimate a main programme from existing data sets, expenditure is either included within the ’Other Miscellaneous’ subcategory, or apportioned over other categories. Treatment may vary between years. 4. When it is not possible to reasonably estimate a disease specific subcategory from existing data sets, expenditure is included within the other subcategory of the relevant programme. The allocation of expenditure to programme budgeting subcategories is not always straightforward, and subcategory level data should therefore be used with caution. It should also be noted that approximately 50% of cancer expenditure is allocated to the ’Other’ cancer subcategory, so the subcategory figures should be interpreted with caution. There is not sufficient information to . allocate some services, such as chemotherapy and radiotherapy, to the individual subcategories. 5. England level figures are calculated using PCT and strategic health authority programme budgeting returns and Department of Health resource accounts data. Figures will include an estimation of special health authority expenditure. Source: Annual PCT programme budgeting financial returns

Mass Media Department of Health Financial year Spend on media monitoring (£)1

Dr Whiteford: To ask the Secretary of State for 2006-07 115,504.42 Health what media monitoring services his Department 2007-08 113,657.00 has purchased in each of the last five years. [100917] 2008-09 117,070.00 2009-10 133,106.90 2010-11 96,608.92 Mr Simon Burns: The Department’s daily cuttings 1 The figures provided above are all inclusive of VAT. from the national press have been provided by Precise Media since 1 July 2007. Connecting for Health joined the Department’s Media Centre following the merger of the media relations Prior to April 2010, regional press cuttings were functions of the Department and NHS Connecting for sourced from Kantar Media Intelligence (formally known Health in April 2009. Therefore, the figures provided as TNS Media Intelligence) via a rolling agreement. above for the financial years 2009-10 and 2010-11 for Since April 2010, the regional press cuttings service has both press cuttings and media monitoring also includes been provided by Precise Media. a small proportion of spend for Connecting for Health’s The spend on media monitoring services the media monitoring subscriptions. Department’s Media Centre has purchased in each of the last five years is provided in the following tables: MMR Vaccine Department of Health Financial year Spend on press cuttings (£)1 Jeremy Corbyn: To ask the Secretary of State for Health when the Urabe strains of the MMR vaccine 2006-07 186,726.95 Pluserix and Immravax were licensed for use in the 2007-08 130,126.92 UK. [101084] 2008-09 119,180.72 2009-10 133,055.81 Paul Burstow: Pluserix licence (PL 0002/0166) was 2010-11 120,185.79 granted on 17 June 1988 and Immravax licence (PL 06745/0020) was granted on 18 September 1989. The Media Monitoring Unit based at the Central Office of Information provides the Department with a NHS: Drugs 24-hour a day, 365 days a year monitoring service of broadcast and print media. They also provide summaries Huw Irranca-Davies: To ask the Secretary of State throughout the day and overnight of key Government- for Health (1) pursuant to the answer of 1 March 2012, related stories and transcripts of interviews on request. Official Report, column 473W, on NHS: drugs delivery 737W Written Answers21 MARCH 2012 Written Answers 738W services, for what reasons his Department does not Kent and Medway NHS and Social Care Partnership Trust monitor the number of emergency deliveries made by Luton and Dunstable Hospital NHS Foundation Trust medicine manufacturers to pharmacies; [100777] Medway NHS Foundation Trust (2) pursuant to the answer of 1 March 2012, Official Mid Essex Hospital Services NHS Trust Report, column 477W, on NHS: drugs and with Mid Staffordshire NHS Foundation Trust reference to Best Practice for Ensuring the Efficient Milton Keynes Hospital NHS Foundation Trust Supply and Distribution of Medicines to Patients, how Northern Lincolnshire and Goole Hospitals NHS Foundation his Department defines ‘quickly and conveniently’ in Trust relation to the supply of prescription medicines to patients; and what steps he is taking to monitor such Peterborough and Stamford Hospitals NHS Foundation Trust supply. [100778] Scarborough and North East Yorkshire Healthcare NHS Trust Sherwood Forest Hospitals NHS Foundation Trust Mr Simon Burns: The joint guidance “Best Practice Surrey and Borders Partnership NHS Foundation Trust for Ensuring the Efficient Supply and Distribution of Surrey and Sussex Healthcare NHS Trust Medicines to Patients”, states that the aim of all parties Tameside Hospital NHS Foundation Trust in the supply chain should be that, under normal West London Mental Health NHS Trust circumstances, pharmacies receive medicines within Yorkshire Ambulance Service NHS Trust 24 hours. Pharmacies make their own commercial arrangements with suppliers and we are cautious about Subsequently the CQC took enforcement action against imposing additional data return burdens on the supply the following NHS providers during 2010-11: chain, including on pharmacists. Barking, Havering and Redbridge NHS Trust Berkshire Healthcare NHS Foundation Trust NHS: Standards Plymouth Hospitals NHS Trust (Derriford Hospital)

Jackie Doyle-Price: To ask the Secretary of State for Nutrition: Children Health which NHS trusts the Care Quality Commission took enforcement action against in (a) 2009-10 and (b) Ms Abbott: To ask the Secretary of State for Health 2010-11. [100688] with reference to his Department’s publication Healthy Lives, Healthy People, what steps he plans to take to Mr Simon Burns: The Care Quality Commission further protect children from the marketing of food (CQC) is the independent regulator of health, and adult and drinks high in fact, sugar and salt. [101149] social care in England and is responsible for developing and consulting on its methodology for assessing whether Anne Milton: The Department continues to keep the providers are meeting the registration requirements under position under review in the light of the latest research the Health and Social Care Act 2008 (the 2008 Act). and evidence. The promotion of food, including to During 2009-10, the CQC registered national health children will be further considered in the forward work service providers against a registration requirement relating programme of the Food Network of the Responsibility to health care associated infection. Deal for 2012-13. Since 1 April 2010, NHS providers have been registered against the full set of registration requirements under Pancreatic Cancer: Health Services the 2008 Act. The following information has been provided by the Ms Abbott: To ask the Secretary of State for Health CQC. what steps he is taking to raise pancreatic cancer (a) The CQC took enforcement action against the survival rates in the worst performing cancer networks following NHS providers in 2009-10. to match those in the best. [101011] Alder Hey Children’s NHS Foundation Trust Paul Burstow: “Improving Outcomes in Upper North West Ambulance Service NHS Trust Gastro-intestinal Cancers”, published in 2001, makes East of England Ambulance Service NHS Trust recommendations on the treatment, management and Basildon and Thurrock University Hospitals NHS Foundation care of patients with upper gastro-intestinal cancers Trust including pancreatic cancer. “Improving Outcomes: A East Midlands Ambulance Service NHS Trust Strategy for Cancer”, published in January 2011, makes (b) On 1 April 2010, the following NHS providers it clear that the improving outcomes in cancer guidance were registered with conditions: published by the National Institute for Health and Clinical Excellence will continue to be a feature of all Barking, Havering and Redbridge University Hospitals NHS commissioned cancer services. Trust Basildon and Thurrock University Hospitals NHS Foundation We know that patients having a more advanced stage Trust of disease at diagnosis is one of the main reasons for Devon Partnership NHS Trust variation in cancer survival outcomes. This is why we have prioritised achieving earlier diagnosis in the Cancer East and North Hertfordshire Primary Care Trust Outcomes Strategy. The strategy is backed by more East Riding of Yorkshire Primary Care Trust than £750 million over the spending review period and Heart of England NHS Foundation Trust sets out an ambition to save an additional 5,000 lives Heatherwood and Wexham Park Hospitals NHS Foundation every year by 2014-15 through earlier diagnosis of cancer Trust and improved access to screening and treatment. 739W Written Answers21 MARCH 2012 Written Answers 740W

To support the national health service to tackle regional Vaccination: Schools variations in cancer survival rates we are providing data to providers and commissioners that allow them to Simon Reevell: To ask the Secretary of State for benchmark their services and outcomes against one Health pursuant to the answer of 27 February 2012, another and to identify where improvements need to be Official Report, column 136W,on vaccinations: schools, made. Surgical resection is currently the best curative who will be responsible for local co-ordination of (a) intervention for pancreatic cancer and, through the immunisation and (b) schools’ vaccination programmes National Cancer Intelligence Network, we have already once primary care trusts are abolished. [101020] made available data collections on survival rates and surgical resection rates across a range of cancers, including pancreatic cancer. Anne Milton: The Department will delegate responsibility for the commissioning of national immunisation In “Improving Outcomes a Strategy for Cancer: First programmes to the National Health Service Commissioning Annual Report”, published in December 2011, we have Board (NHS CB) by means of a formal written agreement. said that continuing to provide the NHS with benchmarked There is work in hand to develop and agree a shared data on variations in services and outcomes as a lever model for how the NHS CB will commission immunisation for improvements is a priority for 2012. in the new system to ensure safe transition. The model will draw appropriately on the expertise of Public Health Ms Abbott: To ask the Secretary of State for Health England. The local co-ordination role forms part of the what assessment he has made of the quality of training development of this model. for clinical nurse specialists on pancreatic cancer. [101012] Work Experience Paul Burstow: It is the responsibility of strategic health authorities (SHAs) to commission education Chi Onwurah: To ask the Secretary of State for and training for their local health care work force. In Health pursuant to the answer of 4 May 2011, Official partnership with local service and education, providers, Report, column 846W,on departmental work experience, SHAs agree the training requirements for nurse specialty how many people (a) worked as an intern, (b) undertook programmes, such as clinical nurse specialists on pancreatic a work experience placement and (c) worked as a cancer, and the practice learning opportunities embedded volunteer in his Department in accordance with the within those programmes. hiring criteria set out in that answer in the last 12 months for which data are available; and how many such people As part of their standard contract with the national were employed other than according to those criteria. health service, higher education institutes are required [100740] to demonstrate to employers that they can deliver training places that include systematic quality assurance processes. Paul Burstow: During the past 12 months, the The new system for education and training will tackle Department has taken part in the Civil Service Whitehall variations in quality standards for nurse training and Internship Scheme from 25 July to 5 August 2011, as assure greater consistency in access to employer led part of the Government’s Social Mobility Strategy. The continuing professional development and new professional, scheme was developed in response to a pledge in the education initiatives. Local Education Training Boards coalition agreement to provide internships in every will address local inconsistencies and will be held to Whitehall Department for people from under-represented account through the education outcomes framework groups. The Department provided opportunities for overseen by Health Education England (HEE). three people of school leaving age, to work in our At a national level, the recommendations made by Whitehall office, giving them meaningful work experience the NHS Future Forum Report to develop properly and an insight into the civil service. structured, post-qualification pathways will be supported The Department continues to support the annual by collaborative working from HEE and the Nursing Cabinet Office Summer Placement Scheme to encourage and Midwifery Council. ethnic and disabled candidates to apply for the fast stream. During the summer of 2011, the Department Tuberculosis employed and paid three individuals from 11 July to 2 September 2011, giving them an insight into the Fast Mr Virendra Sharma: To ask the Secretary of State Stream Development Programme. for Health what steps his Department is taking to On an annual basis, the Department also engages in transfer (a) latent infection and (b) other tuberculosis an annual eight-week placement for NHS management treatment to GPs and pharmacists; and what plans he trainees and last year the Department took on three has for future funding of this care delivery. [101494] trainees. There were also 18 analysts and 10 finance students awarded paid, fixed term appointments to help Anne Milton: Clinical guidelines from the National enhance their work experience and aid their academic Institute for Health and Clinical Excellence recommend studies. that treatment for tuberculosis (TB) should be provided The Department also demonstrates its commitment by specialist clinicians. However, other health care to corporate social responsibility by formalising its professionals such as pharmacists may be involved in work experience activities through the ’Building Bridges’ overseeing directly observed treatment for latent or programme. In the last 12 months, the Department has active TB infection on behalf of a specialist clinician. provided two weeks work experience placements for Funding for local provision of services for TB is a each of eight students as part of their mandatory year matter for local national health service organisations. 10 work experience. 741W Written Answers21 MARCH 2012 Written Answers 742W

Other information on unpaid and expenses-only Mr Paice: DEFRA works with the food and drink internships, volunteers and short-term work experience industry, and other Government Departments, to take placements, organised locally by directorates, is not full advantage of the potential for growth through collected centrally. It would incur disproportionate costs overseas trade, including by identifying global market to collect the information requested. opportunities and barriers to exports. Last year, the growth in the beef export trade approached 15% in real terms. The retail market for beef in the United States is ENVIRONMENT, FOOD AND RURAL AFFAIRS currently estimated at around $74 billion (£44 billion) and imports are valued at some $1.4 billion (£0.84 billion). Biodiversity: Havering The United States Department of Agriculture, Animal and Plant Health Inspection Service published a proposed Andrew Rosindell: To ask the Secretary of State for rule on BSE and imports of bovine animals and their Environment, Food and Rural Affairs what steps she products in the Federal Register on Friday 16 March. has taken to promote biodiversity in the Borough of The summary to the proposed rule states that the changes, Havering in the last 12 months. [100378] if implemented, would continue to guard against the introduction of BSE into the US, while allowing the Richard Benyon: The borough of Havering is a partner import of additional animals and animal products. in the Greater Thames Marshes Nature Improvement DEFRA welcomes the publication of the proposed Area, one of only 12 winners in the recent national rule. We are enhancing our work with partners, including competition for Government funding. The Greater Thames industry, the European Union and our Washington Marshes NIA measures 490 km2 of which roughly embassy, as well as the USDA directly, to develop and 8km2 falls within Havering borough, and will support take forward our views. the development of a coherent ecological network across the Thames estuary. In addition, Natural England supports specific Dangerous Dogs management of the borough’s land holding for environmental purposes, including biodiversity.In 2011-12 a new (Higher Level) Environmental Stewardship agreement Lyn Brown: To ask the Secretary of State for was signed for management on parts of Ingrebourne Environment, Food and Rural Affairs (1) how much Marshes Site of Special Scientific Interest, owned by was spent on kennelling dogs whose classification the borough, providing £16,000 for conservation under the Dangerous Dogs Act 1991 was subject to a management on 18.7 hectares of important wetland court case in (a) England, (b) London and (c) the habitat and 109 hectares of Hornchurch Country Park. London borough of Newham in the latest period for Natural England provides continued support and funding which figures are available; [100920] for two existing agreements on borough-owned land. (2) how many dogs were destroyed in (a) England, As a partner in Green Space Information for Greater (b) London and (c) the London borough of Newham London, the borough of Havering contributes to and following seizure under the Dangerous Dogs Act 1991 benefits from the development of a comprehensive and in the last three years; [100921] up to date environmental evidence base for London, (3) how many dogs are being kennelled in (a) part-funded by Natural England. England, (b) London and (c) the London borough of Ealing whilst their status under the Dangerous Dogs Act 1991 is being determined. [100922] BSE: USA Mr Paice: Figures for the numbers of dogs destroyed Huw Irranca-Davies: To ask the Secretary of State and currently held by each police force or local authority, for Environment, Food and Rural Affairs (1) what and the costs of kennelling, are not held centrally. assessment she has made of the likelihood of the US lifting BSE trade barriers; [100710] (2) what assessment she has made of the potential Lyn Brown: Toask the Secretary of State for Environment, benefits for UK farmers if US import conditions aligned Food and Rural Affairs when her Department will make with the World Organisations for Animal Health standards; an announcement on future dangerous dogs legislation; and if she will make a statement. [100923] [100711] (3) what recent discussions she has had with her US counterparts on the aligning of US import conditions Mr Paice: We have been working on a package of with the World Organisations for Animal Health measures to tackle irresponsible dog owners and will be standards; [100712] announcing these soon. (4) what assessment she has made of the potential Dog attacks are terrible for the victim and in putting effects on the beef industry if US import conditions the package together we have considered the benefits of aligned with the World Organisations for Animal Health compulsory micro-chipping of dogs and extending the standards; [100714] current law to cover private property. (5) what discussions she has had with EU officials on The final package will cover future Government handling the likelihood of the US lifting BSE trade barriers. of these issues as well as other plans to improve the [100713] standards of dog ownership. 743W Written Answers21 MARCH 2012 Written Answers 744W

Farmers Richard Benyon: Natural England’s core Grant in Aid settlement for 2011-12 is £200 million and by Huw Irranca-Davies: To ask the Secretary of State 2014-15 the settlement is expected to fall to around for Environment, Food and Rural Affairs whether she £157 million. has discussed the effect of the reduction in annual Poultry: EU Law investment allowance on farmers with the Chancellor of the Exchequer. [100454] Huw Irranca-Davies: To ask the Secretary of State for Environment, Food and Rural Affairs (1) what assessment Mr Paice: The Secretary of State for Environment, she has made of the effect on costs and availability of Food and Rural Affairs, my right hon. Friend the (a) shell eggs, (b) processed eggs and (c) catering and Member for Meriden (Mrs Spelman), has regular meetings retail products using eggs since the introduction of the with the Chancellor of the Exchequer to discuss a range ban on non-enriched cages; [100668] of DEFRA interests including taxation and agriculture. (2) what assessment she has made of the availability Although the annual investment allowance will fall of eggs and egg products following implementation of from £100,000 to £25,000 in April 2012, over 95% of the ban on non-enriched cages. [100669] businesses are expected to be unaffected by these changes. Mr Paice: I will be meeting shortly with a range of Food Supply representative bodies and businesses directly involved in the production, processing and retail of eggs to gather Tim Farron: To ask the Secretary of State for their views on the situation and establish what they Environment, Food and Rural Affairs pursuant to the think is the cause of any particular problems they are answer of 28 February 2012, Official Report, column experiencing. In addition, DEFRA officials are monitoring 194W, on food supply, how much of the investment in developments closely and liaising at EU level. agricultural research and development will be allocated to (a) crop productivity, (b) sustainable livestock Regulation production, (c) waste reduction and management and (d) greenhouse gas reduction. [100346] Gordon Banks: To ask the Secretary of State for Environment, Food and Rural Affairs how many regulations Mr Paice: DEFRA in partnership with the Technology her Department repealed between 1 June 2011 and 31 Strategy Board and BBSRC are investing £90 million January 2012; and what estimate she has made of the on R&D via the Sustainable Agriculture and Food likely savings in each case. [97919] Innovation Platform over five years with match funding by industry to stimulate technological innovation Mr Paice: The Department revoked 39 statutory to increase food productivity while decreasing the instruments between 1 June 2011 and 31 January 2012, environmental impact in the agri-food sector. DEFRA’s with a further two statutory instruments being partially contribution is £30 million. revoked. 29 of these measures are EU in origin. A list of the instruments revoked is set out in the following table. To date, two collaborative R&D competitions have taken place: The Department did not repeal any primary legislation New approaches to crop protection (£13.6 million) in this period. The estimated costs and savings to business are set out in individual impact assessments. These are Sustainable protein production (up to £15 million) available electronically from the Better Regulation A third call on food processing and manufacturing Executive’s Impact Assessment library: efficiency and waste reduction (up to £15 million) was http://www.ialibrary.bis.gov.uk/links/ officially launched on 14 March. Only one of the statutory instruments listed as follows includes savings to business. This is the Pigs (Records, Horses: Passports Identification and Movement) Order 2011 which has an estimated saving of £0.16 million per year to business. Philip Davies: To ask the Secretary of State for 1 June 2011 to 31 January 2012 Revocations Environment, Food and Rural Affairs what estimate she has made of the number of horses without a valid The Uplands Transitional Payment Regulations 20121 (EU): horse passport in each of the last three years. [101341] Regulations revoked The Hill Farm Allowance Regulations 2001 Mr Paice: All horse owners are required by law to The Hill Farm Allowance hold a passport for each horse they own. No specific Regulations 2002 estimates have been compiled regarding the number of The Hill Farm Allowance horses without a valid passport. Local authorities are Regulations 2003 responsible for enforcing horse passport regulations The Hill Farm Allowance Regulations 2004 throughout England, and penalties can be applied by The Hill Farm Allowance the courts for non-compliance. Regulations 2005

Natural England: Operating Costs The Spring Traps Approval (England) Order 20121 (Domestic): Regulations revoked The Spring Traps Approval Order Mr Knight: To ask the Secretary of State for 1995 Environment, Food and Rural Affairs what the annual The Spring Traps Approval cost to the public purse is of Natural England. [99524] (Variation) (England) Order 2007 745W Written Answers21 MARCH 2012 Written Answers 746W

1 June 2011 to 31 January 2012 Revocations 1 June 2011 to 31 January 2012 Revocations

The Spring Traps Approval Energy Information (Miscellaneous (Variation) (England) Order 2009 Amendment) Regulations 2009 The Spring Traps Approval (Variation) (England) Order 2010 The Pollution Prevention and Control (Designation of Directives) (England The Agricultural Holdings (Units of and Wales) Order 20111 (EU): Production) (England) Order 20111 Regulations revoked The Pollution Prevention and (EU): Control (Designation of Directives) Regulation revoked The Agricultural Holdings (Units of (England and Wales) Order 2010. Production) (England) Order 2010

The Veterinary Medicines The Plant Protection Products (Fees Regulations 20112 (EU)—Cost to and Charges) Regulations 2011 Business of £0.016 million: (EU)—Cost to Business of £0.655 million: Regulations revoked The Veterinary Medicines Regulations 2009. The Veterinary Regulations revoked The Fees for Assessment of Active Medicines (Amendment) Substances (Third Stage Review) Regulations 2011. Paragraph 71 of Regulations 2005 Schedule 4 to the Pharmacy Order The Fees for Assessment of Active 2010 (this aspect is a partial Substances (Fourth Stage Review) revocation only). Regulations 2005 The Plant Protection Products (Fees) Regulations 2007 The Smoke Control Areas (Exempted Fireplaces) (England) Order 2011(Domestic): The Diseases of Animals (Approved Regulations revoked The Smoke Control Areas Disinfectants) (Fees and (Exempted Fireplaces) (England) Amendment) (England) Order 2011 (No 2) Order 2010. (EU)—Saving to Business of £0.1 million: Regulation revoked The Diseases of Animals (Approved The Smoke Control Areas (Exempted Disinfectants) (Fees) (England) Fireplaces) (England) (No. 2) Order Order 2010 2011(Domestic): Regulation revoked The Smoke Control Areas The Charges for Residues (Exempted Fireplaces) (England) Surveillance (Amendment) Order 2011 Regulations 2011: Regulation partially revoked Regulation 2(3) of, and the Schedule The Pigs (Records, Identification and to the Charges for Residues Movement) Order 2011 Surveillance (Amendment) (Domestic)—Saving to Business of Regulations 2009 (partial revocation £0.16 million: only). Regulation revoked The Pigs (Records, Identification and Movement) Order 2007. The Landfill (Maximum Landfill Amount) Regulations 20111 (EU): Regulation partially revoked The Landfill (Scheme Year and The Access to the Countryside Maximum Landfill Amount) (Appeals against Works Notices) Regulations 2004, except for (England) Regulations 2011 regulations 1 and 2 (partial (Domestic): revocation only). Regulations revoked The Access to the Countryside (Means of Access, Appeals) (England) Regulations 2004. The Energy Information Regulations 2011 (EU): Regulations revoked Energy Information (Tumble Driers) New SI The Non-Commercial Regulations1996 Movement of Pet Animals Order 2011 Energy Information (Combined (EU): Washer-driers) Regulations 1997 Regulations revoked (6) The Rabies (Importation of Dogs, Energy Information (Lamps) Cats and Other Mammals) Regulations 1999 Amendment) Order 1994. Energy Information (Household The Rabies (Importation of Dogs, Electric Ovens) Regulations 2003 Cats and Other Mammals) Energy Information (Household Air Amendment) (Wales) Order 2002. Conditioners) (No 2) Regulations The Pet Travel Scheme (Scotland) 2005 Order 2003. Energy Information (Washing The Non Commercial Movement of Machines) Regulations 1996 Pet Animals (England) Regulations Energy Information (Washing 2004. Machines) (Amendment) The Rabies (Importation of Dogs, Regulations1997 Cats and Other Mammals) Energy Information (Dishwashers) (England) (Amendment) Order 2004. Regulations 1999 The Rabies (Importation of Dogs, Energy Information (Household Cats and Other Mammals) Refrigerators and Freezers) Amendment (Scotland) Order 2011. Regulations 2004 1 The measure does not require an impact assessment. Energy Information (Miscellaneous 2 Impact assessment is titled The Veterinary Medicines Regulations 2009. Amendment) Regulations 2001 747W Written Answers21 MARCH 2012 Written Answers 748W

Regulations Commons Act 2006 Domestic 2011/ 10 October (Commencement No 6) 2460 2011 (England) Order1 Gordon Banks: To ask the Secretary of State for Agricultural Holdings (Units of EU 2011/ 7 October Environment, Food and Rural Affairs how many regulations Production) (England) Order1 2451 2011 her Department introduced between 1 June 2011 and 31 Landfill (Maximum Landfill EU 2011/ 15 January 2012; and at what cost to the public purse. Amount) Regulations 20111 2299 September 2011 [99080] Alien and Locally Absent Species EU 2011/ 12 in Aquaculture (England and 2292 September Wales) Regulations 2011 Mr Paice: DEFRA introduced 41 statutory instruments Flood and Water Management Domestic 2011/ 5 September between 1 June 2011 and 31 January 2012 but no Act 2010 (Commencement No 4 2204 2011 primary legislation. These regulations are listed in the and Transitional Provisions) following table. 22 of these regulations are EU in origin. Order Veterinary Medicines Regulations EU 2011/ 25 August DEFRA does not capture the total cost to the public 20111,2 2159 2011 purse of these new regulations (e.g. including staff time Pigs (Records, Identification and Domestic 2011/ 29 August or cost to regulators), but does capture the forecast Movement) Order 2011 2154 2011 Plant Protection Products (Fees EU 2011/ 25 August costs and savings to business, which are set out in the and Charges) Regulations 2011 2132 2011 individual impact assessments. These are available Plant Protection Products EU 2011/ 20 August electronically from the Better Regulation Executive’s Regulations 2011 2131 2011 impact assessment library: Smoke Control Areas (Exempted Domestic 2011/ 22 August Fireplaces) (England) (No 2) 2106 2011 http://www.ialibrary.bis.gov.uk/links/ Order 20111 Smoke Control Areas Domestic 2011/ 22 August Title Domestic/EU Ref Date (Authorised Fuels) (England) 2105 2011 Forest Law Enforcement, EU 2012/178 25 January (Amendment) (No 2) Regulations Governance and Trade 2012 20111 Regulations 2012 Access to the Countryside Domestic 2011/ 11 August Uplands Transitional Payment EU 2012/114 16 January (Exclusions and Restrictions) 2021 2011 Regulations 20121 2012 (Amendment) (England) Regulations 20111 Plant Health (Import Inspection EU 2012/103 12 January Fees) (England) (Amendment) 2012 Access to the Countryside Domestic 2011/ 11 August Regulations 20121 (Dedication of Land) 2020 2011 (Amendment) (England) Access to the Countryside Domestic 2012/67 12 January Regulations 20111 (Appeals against Works Notices) 2012 (England) (Amendment) Access to the Countryside Domestic 2011/ 11 August Regulations 20121 (Appeals against Works Notices) 2019 2011 (England) Regulations 20111 Agriculture (Miscellaneous Domestic 2012/66 10 January Amendments) Regulations 20121 2012 Wildlife and Countryside Act Domestic 2011/ 11 August 1981 (Variation of Schedules 5 2015 2011 Spring Trap Approval (England) Domestic 2012/13 4 January and 8) (England and Wales) Order 20121 2012 Order 2011 Water Supply (Amendment to the Domestic 2011/ 14 December Flood and Water Management Domestic 2011/ 18 July 2011 Threshold Requirement 3014 2011 Act 2010 (Commencement No 1 1770 Regulations 2011 and Transitional Provisions) Seed Marketing Regulations 2011 EU 2011/ 12 December (England) Order 20111 2992 2011 Water Industry (Schemes for Domestic 2011/ 23 June 2011 Eels (England and Wales) EU 2011/ 12 December Adoption of Private Sewers) 1566 (Amendment) Regulations 20111 2976 2011 Regulations Charges for Residues Surveillance Domestic 2011/ 6 December Environmental Protection EU 2011/ 20 June 2011 (Amendment) 20111 2945 2011 (Controls on Ozone-Depleting 1543 Wine Regulations 2011 EU 2011/ 6 December Substances) Regulations 2936 2011 Energy Information Regulations EU 2011/ 20 June 2011 Environmental Permitting Domestic 2011/ 6 December 2011 1524 (England and Wales) 2933 2011 Diseases of Animals (Approved EU 2011/ 15 June 2011 (Amendment) (No 2) Regulations Disinfectants) (Fees and 1509 Non-Commercial Movement of EU 2011/ 6 December Amendment) (England) Order Pet Animals Order 2011 2883 2011 2011 Flood and Water Management Domestic 2011/ 28 Pollution Prevention and Control EU 2011/ 14 June 2011 Act 2010 (Commencement No 5 2856 November (Designation of Directives) 1505 and Transitional Provisions) 2011 (England and Wales) Order 20111 (Sections 38and 39) Rural Development Programme EU 2011/ 3 June 2011 Incidental Flooding and Coastal Domestic 2011/ 28 (Transfer and Appeals) (England) 1433 Erosion (England) Order 2855 November Regulations1 (Sections 38 and 39) 2011 1 Denotes that the measure does not require an impact assessment. Animal By-Products EU 2011/ 8 November 2 Impact assessment is entitled the Veterinary Medicines Regulations 2009 (Enforcement) and Transmissible 2681 2011 Spongiform Encephalopathies (England) (Amendment) Regulations 2011 BUSINESS, INNOVATION AND SKILLS Ecodesign for Energy-Related EU 2011/ 5 November Products (Amendment) 2677 2011 Regulations1 Assisted Areas: Northern Ireland Marketing of Fresh Horticultural EU 2011/ 26 October Produce (Amendment) 2587 2011 Regulations1 Vernon Coaker: To ask the Secretary of State for Waste and Emissions Trading Act EU 2011/ 17 October Business, Innovation and Skills when the Government 2003 (Amendment) Regulations1 2499 2011 plans to publish its response to the consultation on 749W Written Answers21 MARCH 2012 Written Answers 750W removing Northern Ireland’s 100 per cent. automatic January 2011 as set out in the written ministerial statement assisted area status from the Industrial Development made by the Prime Minister, Official Report, columns Act 1982. [100792] 35-36WS.

Mr Prisk: Following ministerial level discussions between English Language: Qualifications this Department and the Department for Enterprise, Trade and Investment Northern Ireland we are aiming to publish the Government’s response shortly. Kate Green: To ask the Secretary of State for Business, Innovation and Skills what steps he is taking to develop alternative qualifications below Level 1 for English for Construction speakers of other languages; and if he will make a statement. [100865] Mr Iain Wright: To ask the Secretary of State for Business, Innovation and Skills what recent estimate he Mr Hayes: This Department is currently considering has made of output in the construction industry in the future shape and content for English for speakers of January 2012; if he will take steps to boost growth in other languages (ESOL) qualifications. construction output; and if he will make a statement. [100147] Exports: Angola Mr Prisk: Non-seasonally adjusted data published by the Office for National Statistics (ONS) on 9 March Daniel Kawczynski: To ask the Secretary of State for 2012 showed that output in the construction contracting Business, Innovation and Skills what the value was of sector fell by 12.3% on the month in January, following UK exports to Angola in (a) 2010 and (b) 2011. an 11.8% monthly decline in December (seasonally [100692] adjusted ONS data are not available for January). The best way to help the construction industry is by Mr Prisk: UK exports of goods to Angola were: £535 creating a balanced model of economic growth. We are million in 2010 and £376 Million in 2011 UK exports of doing this through our Plan for Growth. services to Angola were: £781 Million in 2010. 2011 The Government are acting positively to strengthen figures are planned for release in July 2012. the industry including reforming the planning system, Sources: modernising public sector procurement and setting out HMRC Overseas Trade Statistics (Goods) and ONS Balance of the first National Infrastructure Plan (NIP), which will Payments (Services) unlock up to £200 billion of public and private investment. The NIP sets out a clear pipeline of over 500 infrastructure projects that will be built over the next decade and Exports: Niger beyond, including indentifying the 40 priority projects considered most critical for growth Daniel Kawczynski: To ask the Secretary of State for Announced as part of the Housing Strategy were a Business, Innovation and Skills what the value was number of measures which will make it quicker and of UK exports to Niger in (a) 2010 and (b) 2011. easier to get developments off the ground including a [100693] mortgage indemnity scheme. The Prime Minister and the Minister for Housing Mr Prisk: UK exports of goods to Niger were: £3 million and Local Government, my right hon. Friend the Member in 2010 and £8 million in 2011. UK exports of services for Welwyn Hatfield (Grant Shapps), jointly announced to Niger were: £21 million in 2010. 2011 figures are that from 12 March the mortgage indemnity scheme planned for release in July 2012. will allow prospective first time buyers to obtain mortgages Sources: on newly-built properties with just a 5% deposit. The HMRC Overseas Trade Statistics (Goods) and ONS Balance of NewBuy Guarantee will support an estimated 50,000 Payments (Services) jobs in construction and related industries by increasing demand for newly-built homes. Foreign Investment in UK Another initiative is the £420 million Get Britain Building Fund to help get stalled sites moving again and £500 million Growing Places Fund to provide Laura Sandys: To ask the Secretary of State for infrastructure support. It was announced in February Business, Innovation and Skills how many (a) regional that the Growing Places Fund has been allocated to the inward investment agencies and (b) local economic country’s 39 Local Enterprise Partnerships, who will partnerships which have signed a memorandum of now decide what to prioritise locally. understanding with his Department now have access to international pipeline markets. [99019] Digital Technology Mr Prisk [holding answer 12 March 2012]: The Adam Afriyie: To ask the Secretary of State for impending abolition of the regional development agencies Business, Innovation and Skills how his Department means that none have had, or will have, access to the defines the term digital economy. [101226] single national pipeline. Currently, there are 15 local economic partnerships, Mr Prisk: This area of responsibility was transferred and their nominated delivery partners, that have direct to the Department for Culture, Media and Sport on 18 access to the pipeline. 751W Written Answers21 MARCH 2012 Written Answers 752W

ICT of the highly regarded IT Management for Business degree, designed by over 60 leading businesses and e-skills UK. Stephen Mosley: To ask the Secretary of State for In addition, e-skills UK, in partnership with industry, Business, Innovation and Skills what steps his Department is seeking to identify a number of interventions they has taken on adopting the recommendations of the believe are key to overcoming barriers to developing the Parliamentary Internet and Communications Technology skilled individuals required by the sector. They have Forum to (a) increase Government investment in recently bid successfully for Government funding, provided broadband, (b) increase Government investment in through the UK Commission for Employment and cutting-edge, innovative ICT education in schools, (c) Skills, to advance a number of key projects to help train and retain highly-skilled ICT students and employers develop better links with universities, addressing professionals and (d) develop a strategy to encourage both the quality of degree courses and to help develop take-up of ICT by small and medium-sized enterprises students with the skills required by business; raise the to encourage their own growth; and if he will make a quality and demand for IT apprentices in SMEs; and statement. [100341] develop a framework for a high level apprenticeship which was launched in February this year. These initiatives, Mr Prisk [holding answer 19 March 2012]: In adopting alongside the existing professional placement scheme, the recommendations of the Parliamentary Internet should assist the industry secure quality IT professionals. and Communications Technology Forum the Government (d) Through a national pilot programme of 16 are: “bootcamp” events and web broadcasts, over 4,500 SMEs are being trained to make greater and more (a) Funding £630 million of investment in rural and effective use of the internet and associated technologies urban broadband in this spending review period, with to help them boost productivity and growth. The pilot match funding from local authorities. £300 million of programme will be completed by the end of March additional investment from the TV licence fee is already 2012 and will thereafter be evaluated, with the results secured in the next spending review period and decisions informing decisions on a potential larger scale roll-out. on the use of this funding will be taken nearer the time. (b) Currently consulting on the proposal to disapply Inward Investment: West Midlands the existing programmes of study, attainment targets and statutory assessment arrangements for ICT from Mr Jim Cunningham: To ask the Secretary of State September 2012. This is part of the Government’s for Business, Innovation and Skills what recent steps wider policy on technology in schools, and is intended UK Trade and Investment has taken to support inward to reinvigorate ICT in the curriculum through enabling investment in the west midlands. [100353] schools to innovate and use their creativity to teach ICT in a way that really meets the needs of their pupils. Mr Prisk [holding answer 20 March 2012]: United While the proposed policy does not constitute direct Kingdom Trade and Investment (UKTI) has contracted Government financial investment in cutting edge ICT with PA Consulting to provide resource to deliver inward education in schools, if implemented it will provide investment for England and to co-ordinate inward schools with the freedom to develop more their own investment project opportunities for the UK. more creative and challenging programmes of study— UKTI has agreed Memorandums of Understanding drawing on support and advice from those best positioned (MOUs) with all of the local enterprise partnerships to judge what an ambitious and forward-looking curriculum (LEPs) in the west midlands (Coventry and Warwickshire, should contain. We know that a number of leading the Marches, the Black Country, Stoke and Staffordshire organisations in the IT field are already developing and Worcestershire) describing how we work together resources and courses which schools can use to enhance to support inward investment into the UK. their ICT curriculum provision so that it better equips As part of the MOU, UKTI is working with the pupils with the higher-level technological skills needed LEPs to understand the detail of their proposition to for progress into further study and employment within potential inward investors. LEPs are asked to articulate the IT industry. We anticipate that in response to the their local capability to UKTI which will be fed into proposed disapplication of the ICT programme of study, sub-sector company propositions. Additionally, UKTI other organisations will also produce and market resources is visiting key local assets in the west midlands to and support services to schools to help them strengthen understand potential locations that can be put forward their ICT curriculum offer to pupils. to clients. LEPs will also have access to the new UKTI The Government are also continuing to support better national pipeline of inward investment opportunities quality ICT teaching. Between the period 2011 and where they can see an aggregate view of investment 2013 we will have invested a total of £3.75 million to inquiries in different sectors and regions of interest. support the regional centres that provide professional There are currently 3,923 projects in the national pipeline, development opportunities for ICT teachers delivered and 135 of these inquiries have expressed an interest in by the VITAL consortium, comprising the Open University the west midlands as a region to locate. and e-skills UK (the Sector Skills Council for IT). We UKTI currently has eight staff in the region proactively will also be continuing to fund continuing professional managing 120 companies, which will increase to 190 by development (CPD) for ICT teachers until March 2013. May 2012. UKTI has supported a number of companies (c) The Government currently invest significant funds who have invested in the west midlands in 2011-12 to support the development of IT skills through the including Kraft and Tata. education system. This ranges from the apprenticeships UKTI will be announcing the 2011-12 inward investment offer, to higher education including funding for provision results for the UK on 26 July 2012. 753W Written Answers21 MARCH 2012 Written Answers 754W

Learning and Skills Improvement Service Foreign and Commonwealth Office, participated in trade talks with Algeria in 2011. UKTI works with relevant John Mann: To ask the Secretary of State for Business, stakeholders and communicates market opportunities Innovation and Skills whether the Learning and Skills to UK based firms through a range of mechanisms, Improvement Service (LSIS) achieved Corporate Aim 1 including an event on North Africa held on 8 March 2012. of its Operational Plan of 2010-11 that sector delivery should comprise 70 per cent. of the body’s overall Regulation contract delivery in 2010-11; what progress has been made in increasing sector delivery to 80 per cent. in Gordon Banks: To ask the Secretary of State for 2011-12; and when the LSIS plans to publish its Operational Business, Innovation and Skills how many regulations Plan for 2011-12. [101161] his Department repealed between 1 June 2011 and 31 January 2012; and what savings were made as a result Mr Hayes: In its “Operational Plan 2010-11” the of each such repeal. [98515] Learning and Skills Improvement Service (LSIS) stated that it would work towards a target of 60% overall Mr Prisk [holding answer 15 March 2012]: The following programme delivery by the sector for 2010-11, increasing regulations have been introduced in the Department for to 70% in 2011-12 and 80% in 2012-13. Business, Innovation and Skills between 1 June 2011 Based on an analysis of its expenditure for 2010-11, and 31 January 2012, which have repealed 86 statutory LSIS exceeded its target of 60% sector delivery for that instruments. Although there are no cost savings for year. business, this has improved the regulatory landscape. The document “Strategic Intentions 2011-14” sets Equivalent out key areas of strategic importance for LSIS over the Date the annual net next three years. This document states that LSIS will measure is cost to achieve a sector delivery target of 70%. This replaces due to business Purpose of the come in (£ million, the targets previously set out in the “Operational Plan Title of the measure measure force 2009) 2010-11”, and was endorsed by the sector, through the LSIS Council. Calibration of Tanks Revocation of the 1 July 2011 0 of Vessels (EEC Calibration of Tanks LSIS will report on its achievement for 2011-12 against Requirements) of Vessels (EEC this target within its “2011-12 Trustees’ Report and (Revocation) Requirements) Financial Statements” in summer 2012. Regulations 2011 Regulations 1975 Public Policy To revoke an October 0 Together the documents “Strategic Intentions 2011-14” Exclusion Order exclusion from the 2011 and “LSIS Improvement Services 2011-12”replace LSIS’s (Complex Weapons) prohibitions of the (Revocation) 2011 Competition Act 1998 operational plan for 2011-12. to agreements relating to complex weapons. Overseas Trade: Africa The Trading with the The intention of the 15 0 Enemy (Revocation) Trading with the December Order2011—81 Enemy legislation, 2011 Daniel Kawczynski: To ask the Secretary of State for measures which came into effect Business, Innovation and Skills how many full-time when the United Kingdom entered a personnel are employed by UK Trade and Investment state of war in to work on increasing UK trade with (a) Chad, (b) September 1939, was Guinea-Bissau and (c) Guinea-Conakry. [100690] to prevent the enemy from benefiting from enemy interests in the Mr Prisk: There are no staff employed by UK Trade UK and, vice versa, and Investment (UKTI) to work on trade with Chad, enemy interests in the UK from benefiting Guinea or Guinea-Conakry. However, political support from activities of the from the head of mission, in respect of a particular enemy. It prohibited contract or business with interests in the market, continues any commercial or financial dealings to be available. UKTI also provides some information with the enemy and on these markets via the relevant country pages of the provided for the UKTI website. preservation of enemy property in the United Kingdom in Overseas Trade: Algeria contemplation of arrangements to be made at the Daniel Kawczynski: To ask the Secretary of State for conclusion of peace. Business, Innovation and Skills what steps UK Trade The Trading with the As above but made by 15 0 and Investment is taking to increase UK trade with Enemy (Revocation) a privy council order. December Algeria. [100691] Order in Council 2011 2011—three measures Mr Prisk: UK Trade and Investment (UKTI) has a team in Algiers focused on increasing UK trade, and Tobacco: Packaging offers UK based businesses the full range of its services. This includes bespoke reports, assisting with trade missions, Adam Afriyie: To ask the Secretary of State for country briefings, maintaining contacts with the Algerian Business, Innovation and Skills what assessment he has Government and key decision makers, lobbying and made of the potential effects of introducing plain other services as requested. My noble Friend Lord packaging of tobacco products on the UK black Howell of Guildford, the Minister of State for the market in counterfeit tobacco products. [101121] 755W Written Answers21 MARCH 2012 Written Answers 756W

Mr Prisk [holding answer 20 March 2012]: The INTERNATIONAL DEVELOPMENT Department for Business, Innovation and Skills (BIS) has not made any assessment of the potential effects of Bangladesh introducing ‘plain’ or ‘standardised’ packaging of tobacco products on the UK black market in counterfeit tobacco Lisa Nandy: To ask the Secretary of State for products. HM Revenue and Customs (HMRC) have the International Development whether his Department lead responsibility for any such assessment. BIS officials has made representations to the Bangladeshi authorities are however working closely with HMRC officials in on Bangladesh’s new national coal policy. [101170] exploring the potential impacts of introducing such a policy, along with officials from the Department of Mr Duncan: I enquired about the progress of the Health (who lead in this policy area), the Intellectual national coal policy when I visited Bangladesh last year. Property Office, HM Treasury and other interested There was no discussion of the Phulbari mine and the Departments. Department has not entered into any further discussions on the matter. The Prime Minister of Bangladesh, Sheikh Hasina, recently said that there would be no new Adam Afriyie: To ask the Secretary of State for mining under the current Government. Business, Innovation and Skills what research his Department has (a) commissioned and (b) evaluated Bangladesh: Overseas Aid into the potential effects of an introduction of plain packaging of tobacco products on (i) the supply and Lisa Nandy: To ask the Secretary of State for demand of counterfeit tobacco products and (ii) potential International Development whether his Department violations of UK and international trade mark law. has provided support for the proposed Phulbari Coal [101210] Project in Bangladesh since 2006. [101280]

Mr Prisk [holding answer 20 March 2012]: The Mr Duncan: The Department for International Department for Business, Innovation and Skills (BIS) Development has not provided any support for the has not commissioned any research into the potential Phulbari Coal Project. effects of ‘plain’ or ‘standardised’’ packaging of tobacco Lisa Nandy: To ask the Secretary of State for products nor evaluated the effects of introducing such a International Development what correspondence and policy. The lead for developing and commissioning any discussions his Department has had with UN Special new research in this policy area is with the Department Rapporteurs on the proposed Phulbari Coal Project in for Health (DH). BIS officials are however working Bangladesh. [101281] closely with DH officials in exploring the potential impacts of introducing such a policy, along with officials Mr Duncan: The Department for International from the Intellectual Property Office (trade mark law), Development has not had any discussions with the UN HM Treasury (tobacco duty), HM Revenue and Customs Special Rapporteurs on the Phulbari Coal Project, but (illicit/counterfeit trade) and other interested Departments. we are aware of their recent report. British Overseas Territories UK Trade and Investment: Libya Andrew Rosindell: To ask the Secretary of State for International Development (1) if he will place in the James Wharton: To ask the Secretary of State for Library a copy of the paper his Department prepared Business, Innovation and Skills how much UK Trade on discharging its responsibilities towards the British and Investment spent on activities related to business Overseas Territories; [100383] and commerce in Libya in each of the last five years. [100110] (2) pursuant to the written ministerial statement of 14 September 2011, Official Report, column 48WS, on Overseas Territories Strategy, if he will publish the Mr Prisk: UK Trade and Investment (UKTI) expenditure paper his Department prepared on how it intends to on activities related to business and commerce in Libya recognise its responsibility to engage with the British for the last five years to date is set out in the following Overseas Territories. [100557] table. Mr Duncan: The Department for International Total (£) Development (DFID) is currently drafting a paper which sets out its responsibilities to the Overseas Territories. 2007-08 54,720 The final paper will be published on the DFID website 2008-09 48,224 and will be available in the Library in due course. 2009-10 45,013 2010-11 25,305 Information Commissioner 2011-12 107,280 Note: Mr Blunkett: To ask the Secretary of State for The figures show a decrease in 2010-11 which was due to the unrest in International Development how many appeals his the region impacting on UKTI activities. The marked increase for Department has made to an information tribunal contesting 2011-12 was due to UKTI designating Libya as a High Value Opportunity (HVO) giving it extra resource to ensure that UK businesses are a decision notice of the Information Commissioner in positioned to respond adequately to Libyan priorities for economic the last 12 months. [100299] development. These figures do not include the cost of UKT1 staff in Libya and of staff in the UK working on Libya. Mr Duncan: None. 757W Written Answers21 MARCH 2012 Written Answers 758W

Lost Property and private sector initiatives which contribute to low carbon and climate resilient development, including Dr Whiteford: To ask the Secretary of State for integrated water resource management. International Development what property has been lost Work Experience or stolen from his Department in the last 12 months; and what the estimated cost was of replacement of such property. [100900] Chi Onwurah: To ask the Secretary of State for International Development pursuant to the answer of Mr Duncan: The Department for international 4 May 2011, Official Report, column 826W,on departmental Development’s (DFID) central accounting records show work experience, how many people (a) worked as an the following items have been reported as lost or stolen intern, (b) undertook a work experience placement and within the past 12 months. (c) worked as a volunteer in his Department in accordance with the hiring criteria set out in that answer in the last Estimated current replacement 12 months for which data are available; and how many cost (£) such people were employed other than according to those criteria. [100741] 17 laptops 5,070 Three mobile phones 159 Mr Duncan: The Department for International One Blackberry 332 Development (DFID) participates in the two week Civil Two memory sticks 16 Service Whitehall Internship Programme which was Total 5,577 announced through the Social Mobility Strategy in April 2011. This programme provides Year 12 College It is the responsibility of DFID staff to ensure that level students with an opportunity to undertake a two valuable items of official equipment are adequately week work experience placement in a Government protected. If items are lost or stolen, staff must submit Department. The programme is designed to increase a report to security section setting out the circumstances professional experience and workplace skills and is leading up to the loss. Follow-up action, including aimed at students from under-represented backgrounds. formal disciplinary procedures where required, will be DFID offered three internships on this programme in invoked by the line manager. 2011 and will offer a similar number of placements for the 2012 intake. Procurement DFID also offers internships to graduates and undergraduates through the Summer Diversity Internship Tom Greatrex: To ask the Secretary of State for Programme (SDIP). The programme is aimed at black International Development what proportion of contracts and minority ethnic university students and those from issued by (a) his Department and (b) agencies for lower socio-economic groups and seeks to provide talented which he is responsible were rewarded to small and candidates with 6-9 week training placements in medium-sized enterprises in the latest period for which Government Departments. DFID did not offer any figures are available. [100366] placements during 2011 but has offered three across the Department in 2012. Mr Duncan: In the last full financial year (2010-11) contracts awarded by the Department for International Development (DFID) to small and medium-sized ENERGY AND CLIMATE CHANGE enterprises accounted for 53% of all contracts awarded. DFID is not responsible for any agencies. British Overseas Territories

Rwanda Andrew Rosindell: To ask the Secretary of State for Energy and Climate Change if he will place in the Ian Lucas: To ask the Secretary of State for Library a copy of the paper his Department prepared International Development what steps the Government on discharging its responsibilities towards the British is taking to assist the development of water projects in Overseas Territories. [100382] Rwanda. [101006] Gregory Barker: The Foreign and Commonwealth Mr Andrew Mitchell: The Government assist the Office plan to publish a White Paper setting out the development of a wide range of water projects in Rwanda. Government’s overall approach to the Overseas Territories Firstly, the Government support provision of water for shortly. irrigation through sector budget support and technical In advance of this, we will publish online a paper on assistance to the Rwandan Ministry of Agriculture, DECC’s proposed engagement with the British Overseas which aims to increase the area of irrigated land from Territories. I will, on the same day, deposit a copy of the 13,000 to 65,000 hectares by 2017. The Government paper in the Libraries of the House. also support the provision of drinking water through its general budget support to the Government of Rwanda, Energy: Billing which since 2009-10 has increased the percentage of households with access to safe drinking water from 74% Caroline Flint: To ask the Secretary of State for to 81%. Finally, the Government are supporting the Energy and Climate Change what estimate he has made establishment of the Rwanda National Fund for Climate of average debt levels of (a) domestic and (b) non-domestic and the Environment, which will finance programmes customers in debt to their energy supplier in (i) 2011, 759W Written Answers21 MARCH 2012 Written Answers 760W

(ii) 2010, (iii) 2009, (iv) 2008, (v) 2007, (vi) 2006 and Charles Hendry: The carbon dioxide (CO2) emission (vii) 2005. [100525] factors for electricity for the iterations of Standard Assessment Procedure (SAP) back to 2002 are: Charles Hendry: Ofgem monitors and publishes information about the average level of debt that domestic Estimated (kg/CO2/ Actual (kgCO2/ customers owe for their gas and electricity supplies (in SAP/period in use kWh) kWh) its Social Obligations Annual Reports). Ofgem does not 2001-02 to 2006 0.414 10.534 publish data on non-domestic customers’ level of debt. 2005-06 to 2010 0.422 0.605 The following table shows the average level of debt for 2009-10 to 2013 20.517 — domestic customers at the end of the year from 2005 to 2012-13 to 2016 30.522 — 2010. Data for 2011 are not yet available. 1 The actual value for the period 2002 to 2006 has not been determined, as compliance with building regulations was generally determined by £ the elemental U value method, not the alternative Carbon Index 2005 2006 2007 2008 2009 2010 method. By comparison the averaged carbon emission value for electricity for the period 2002 to 06, as published in DEFRA’s Electricity 197 215 194 240 285 316 Company Reporting Guidelines, was 0.534 kgCO2/kWh (kilograms Gas 205 204 210 202 295 310 of carbon dioxide per kilowatt hour). 2 The information necessary to determine the values for subsequent These figures have been adjusted to take into account years is not yet available. inflation, with all debt figures calculated in 2010 prices. 3 Provisional. This has been done using the gross domestic product (GDP) deflator series, published by HM Treasury: Barry Gardiner: To ask the Secretary of State for Energy and Climate Change by what methodology he http://www.hm-treasury.gov.uk/data_gdp_index.htm calculated the forward carbon emission factors for grid electricity in Standard Assessment Procedure 2012. Chris Ruane: To ask the Secretary of State for Energy [100872] and Climate Change pursuant to the answer of 13 March Official Report 2012, , column 160W, on Energy, if he Charles Hendry: The methodology employed was will consider collecting data on household energy switching published on 4 January in a technical paper that supports (a) (b) [100701] by region and social class. the public consultation on potential changes to the Standard Assessment Procedure. The paper, reference Charles Hendry: The Department collects data of STP11/CO204, can be access via the following link: direct relevance to developing policy or tracking the effectiveness of existing policies. Ofgem provides data http://www.bre.co.uk/filelibrary/SAP/2012/STP11- CO204_emission_factors.pdf on the total number of customers switching from one supplier to another in the UK and my Department uses these data in its Quarterly Energy Prices reports. At this Energy: Prices time we do not consider the benefits of a more detailed breakdown of switching data to outweigh the costs of Chris Ruane: To ask the Secretary of State for Energy sourcing this, but we will keep the matter under review. and Climate Change if he will commission an inquiry into fair pricing of energy. [98924] Energy: Carbon Emissions Charles Hendry: A public inquiry could take up to a Barry Gardiner: To ask the Secretary of State for year to complete and may require primary legislation Energy and Climate Change if he will publish a table afterwards to deliver any outcomes. The process would for each level of projected carbon emission factors for be likely to delay Ofgem’s planned retail market reforms grid electricity for Standard Assessment Procedure which are aimed at simplifying complex tariff structures, calculation purposes for (a) 2012, (b) 2013-14, (c) increasing transparency and improving information 2016-18, (d) 2019-21, (e) 2022-24 and (f) 2025-27 provided to consumers. showing the expected percentage of decarbonisation of Ofgem monitors the market closely to ensure consumers the electricity grid that is expected to have been pay a fair price for their energy. Our competitive energy achieved within each such time period. [100869] market has ensured that British households pay some of the lowest prices for gas and electricity in Europe. Charles Hendry: The projected carbon dioxide emission factors covering specific periods out to 2027 were published on 4 January in a technical paper that supports the Environment Protection public consultation on potential changes to the Standard Assessment Procedure. The paper, reference STP11/CO204, Chi Onwurah: To ask the Secretary of State for can be access via the following link: Energy and Climate Change what his Department’s http://www.bre.co.uk/filelibrary/SAP/2012/STP11- strategy is for promoting the low-carbon manufacturing CO204_emission_factors.pdf base. [101097]

Barry Gardiner: To ask the Secretary of State for Gregory Barker [holding answer 20 March 2012]: Energy and Climate Change if he will publish a table of The building of a vibrant green economy and the promotion the forward projections of carbon emission factors for of a low-carbon manufacturing base are top priorities grid electricity within the iterations of Standard for this Government. Assessment Procedure calculations over the last 10 Last August, the Government published ’Enabling the Transition available years, and the corresponding annual outturn to a Green Economy’. This sets out the range of levers we are in each year. [100870] using to drive green growth. 761W Written Answers21 MARCH 2012 Written Answers 762W

The National Infrastructure Plan sets out our plans for Centres Gregory Barker: DECC is working with the solid wall for Offshore Renewable Engineering—and DECC has been sector to ensure the supply chain can increase capacity working closely with BIS on agreeing the locations and prospectus in a steady and sustainable way between now and 2015. for the centres. DECC has set aside up to £200 million for the development of Mass Media low-carbon technologies including up to £60 million for offshore wind manufacturing infrastructure at port sites in Assisted Areas in England. Dr Whiteford: To ask the Secretary of State for Energy and Climate Change what media monitoring Policies including the renewables obligation, renewable services his Department has purchased in each of the heat incentive, the green deal, feed in tariffs and new last five years. [100891] nuclear build will stimulate greater investment in UK manufacturing, strengthening domestic low-carbon supply Gregory Barker: The Department was formed in October chains and bringing local jobs. For example, in February, 2008. The Department has purchased the following the British and French Governments signed a partnership media monitoring services: agreement underpinned by a number of commercial deals in the field of nuclear energy, worth more than 2008 and 2009: £500 million and creating more than 1,500 jobs across Press cuttings services from Precise, Press Data, Clip Ability the country—including the building of a new factory in Ltd and Strata Matrix. Rotherham. Transcripts, media briefings and broadcast summaries from the Media Monitoring Unit of the Central Office of Information. Environment Protection: Taxation 2010: Press cutting services from Precise, Press Data and Monitor Cymr Wales. Mrs Main: To ask the Secretary of State for Energy Transcripts (until September), media briefings and broadcast and Climate Change what estimate he has made of the summaries from the Media Monitoring Unit of the Central proportion of consumer energy bills that is attributable Office of Information. to green taxes. [98986] Transcripts (from October) from Wordsworth. 2011: Charles Hendry: The only tax levied on household gas and electricity bills is VAT at 5%. The costs of Press cuttings service from Press Data. energy and climate change policies are not direct levies Press cuttings services (until September) from Precise. on energy bills but impact the prices energy suppliers Press cuttings service (from October) from Durrants. charge their customers. Media briefings and broadcast summaries from the Media DECC estimates that the costs of these policies represent Monitoring Unit of the Central Office of Information. around 7% of the current average household dual fuel Transcripts from Wordsworth. bill,1 consistent with Ofgem’s estimates. These largely 2012: relate to policies designed to improve the energy efficiency Press cuttings service from Durrants and Press Data. of our homes, reduce our reliance on fossil fuels and Media briefings and broadcast summaries from the Media provide support with energy costs for eligible low income Monitoring Unit of the Central Office of Information. and vulnerable energy customers. Transcripts from Wordsworth. 1 Analysis published in November 2011 and available online at: http://www.decc.gov.uk/en/content/cms/meeting_energy/aes/ Nuclear Power impacts/impacts.aspx Tom Greatrex: To ask the Secretary of State for Tom Greatrex: To ask the Secretary of State for Energy and Climate Change how much energy was Energy and Climate Change what assessment he has generated by each nuclear power station in (a) 2008, made of the effect the Carbon Price Floor will have on (b) 2009, (c) 2010, (d) 2011 and (e) 2012. [101260] domestic energy bills; and by what means he carried out such an assessment. [101289] Charles Hendry: DECC does not hold generation data for individual nuclear power stations. Data are Miss Chloe Smith: I have been asked to reply on collected at company level only, for total nuclear generation behalf of the Treasury Department. in each of the UK countries. An assessment of the impacts of the carbon price Nuclear generation for the UK as a whole can be floor is given in “HM Revenue and Customs’s Tax found in table ET 5.1, available at: Information and Impact Note” published alongside http://www.decc.gov.uk/en/content/cms/statistics/energy_stats/ Budget 2011. This is available online at: source/electricity/electricity.aspx http://www.hmrc.gov.uk/budget2011/tiin6111.pdf. Provisional data for 2011 will be available on 29 March 2012. Green Deal Scheme Renewable Energy

Mr Amess: To ask the Secretary of State for Energy Sir Alan Beith: To ask the Secretary of State for and Climate Change whether he has considered Energy and Climate Change what information his introducing a transition period for implementation of Department holds on the proportion of each county’s the Green Deal to allow workers fitting insulation to consumption that is produced by renewable energies retrain to fit solid wall installation; and if he will make (a) including and (b) excluding biomass generation. a statement. [97422] [101038] 763W Written Answers21 MARCH 2012 Written Answers 764W

Gregory Barker: Unfortunately, no information is 1 Arup (2011), Review of the generation costs and deployment held centrally relating to the proportion of each county’s potential of renewable electricity technologies in the UK, available at: electricity consumption that is produced by renewable http://www.decc.gov.uk/en/content/cms/consultations/ sources. cons_ro_review/cons_ro_review.aspx 2 1 Load factors are calculated using the average installed capacity We do publish estimates of final energy consumption covering the period in question (in this case 1 July 2011 and at local authority level: 30 September 2011) and the total amount of electricity generated http://www.decc.gov.uk/en/content/cms/statistics/energy_stats/ throughout the period. New capacity installed towards the end of regional/total_final/total_final.aspx the period in question can artificially reduce the load factor. 3 Energy from waste. 1 However, the electricity estimates show consumption for all 4 Indicates brace. generation types (which would include renewables), and estimates for ‘renewables and wastes’ relate to heat consumption. Wind Power: Health Hazards

Ian Paisley: To ask the Secretary of State for Energy Sir Alan Beith: To ask the Secretary of State for and Climate Change what reports he has received of Energy and Climate Change what the estimated load people treated for the effects of illness apparently factor was for each form of renewable energy in the caused by being in, or living in, close proximity to a latest period for which figures are available; and what wind turbine in the last five years. [100605] estimate he has made of the load factor in each case in 2020. [101042] Charles Hendry: We are aware of one specific report of illness allegedly related to the operation of wind Gregory Barker: Data on load factors for electricity turbines, of which there are over 3,500 in operation in generation from the main renewable technologies are the UK. published annually in the Digest of UK Energy Statistics There is however no scientific evidence that demonstrates (table 7.4 in the 2011 edition) and quarterly in Energy a link between wind turbines and direct adverse health Trends (table 6.1). Both publications are available in the impacts in people living in proximity to them. House Library, and on the Departments website at: DECC and its predecessor Departments have published http://www.decc.gov.uk/en/content/cms/statistics/publications/ various independent studies into the impacts of wind publications.aspx farm noise and shadow flicker in recent years. These have concluded that properly sited wind farms do not The latest data relates to the period 1 July 2011 to have a direct effect on public health. 30 September 2011, and was published in the December This position has been most recently confirmed in an 2011 edition of Energy Trends; these are reproduced in independent study by medical and engineering experts the following table. Provisional data for the calendar published by the US Massachusetts Departments of year 2011 will be available in the March 2012 edition of Environmental Protection and Public Health in January Energy Trends, which will be published on 29 March 20121 . This found that there is no evidence for a set of 2012. health effects from exposure to wind turbines that could It should be noted that because load factors are be characterised as a ″Wind Turbine Syndrome″ and subject to seasonal variability, those covering the latest that there is insufficient evidence that the noise from period are not directly comparable to the estimates wind turbines is directly causing health problems or covering a full year in 2020. Load factors for renewable disease (ie independent from an effect on annoyance or technologies vary over time due to factors including sleep). Noise, shadow flicker and other environmental weather conditions, maintenance requirements and market impacts from wind turbines are considered within the conditions. planning process before any decision is taken on whether Estimated load factors for 2020 are taken from Arup (2011)1 or not to grant consent to a project. 1 Percentage Wind Turbine Health Impact Study: Report of Independent Expert Panel, January 2012—prepared for Massachusetts Department Average load factor during the period 1 Central load factors of Environmental Protection, Massachusetts Department of Public Renewable July 2011 to 30 in 2020, Arup Health. See: technology September 2011 (2011) http://www.mass.gov/dep/energy/wind/turbine_impact_study.pdf

Onshore Wind 19.2 28.6 above 5MW — 25 below 5MW Wind Power: Seas and Oceans Offshore Wind 30.7 37.7 Hydro 33.7 45.8 above 5MW Tom Greatrex: To ask the Secretary of State for Energy and Climate Change when he (a) last chaired — 46.4 below 5MW and (b) will next chair a meeting of the Offshore Wind Landfill gas 56.3 81 Developers’ Forum. [101282] Sewage sludge 42.1 68 digestion Charles Hendry: I chaired the last Offshore Wind Municipal solid 44.8 382.7 waste combustion Developers Forum meeting on 6 February 2012 with Keith Anderson, Chief Corporate of Scottish Power. Animal biomass 54.3 90 The next meeting is scheduled for 26 June 2012. Plant biomass 51.0 4— Total (excluding 30.2 n/a co-firing and non- Tom Greatrex: To ask the Secretary of State for biodegradable Energy and Climate Change what methodology his wastes) Department plans to use to measure progress in achieving 765W Written Answers21 MARCH 2012 Written Answers 766W the Offshore Wind Developers’ Forum target of 50 per This information has been published in table LAE1 cent. local contract. [101285] of Statistical First Release ’Children Looked After by Local Authorities in England (including adoption and Charles Hendry: Following the publication of the care leavers)—year ending 31 March 2011’, which is Offshore Wind Developers Forum’s vision on UK content available on the Department’s website via the following in February, DECC and The Crown Estate are working link: with the OWDF to develop a standardised methodology for identifying and recording the level of UK content in http://www.education.gov.uk/rsgateway/DB/SFR/s001026/ future offshore wind farm projects. The outcome of this index.shtml work will be considered at the next meeting of the OWDF in June 2012. Gareth Johnson: To ask the Secretary of State for Education how many children in (a) Dartford constituency and (b) Kent were in foster care waiting for adoption in EDUCATION each of the last five years. [100424] Adoption: Kent

Gareth Johnson: To ask the Secretary of State for Tim Loughton: The information requested for Kent Education how many children in (a) Dartford constituency local authority can be found in the table. Information and (b) Kent were adopted in each of the last five at constituency level is not available. years. [100423] The decision that a looked after child should be Tim Loughton: The information requested can be placed for adoption is made by the local authority but found in the table. Information at constituency level is the local authority cannot actually place the child with not available. prospective adopters without either a placement order Looked after children who were adopted during the years ending or parental consent (depending on the individual 31 March1. Years ending 31 March 2007 to 2011 circumstances of the case). Number of looked after children adopted during the year Information about the decision that a child should 2007 2008 2009 2010 2011 be placed for adoption has only been collected for all Kent 90 90 75 70 60 looked after children, for whom the decision was made, local since 2009. Previously, this information was only given authority when the child had been adopted. Consequently, the 1 Figures have been rounded to the nearest five. number of children waiting for adoption can only be Source: provided for the last three years. SSDA903

Looked after children for whom the decision was made that they should be placed for adoption while placed in foster care, who were then placed for adoption, adopted, had the decision that they should be placed for adoption reversed or who were still waiting to be adopted at 31 March1, 2, 3, 4. Years ending 31 March 2009 to 2011. Coverage: Kent Number Year in which the child was placed for adoption, adopted, for whom the decision was reversed or was waiting to be adopted 2009 Number of children Year in which the in foster care for decision was made whom the decision that the child should was made that they Number for whom Number at be placed for should be placed for Number of children Number of children the decision was 31 March awaiting adoption adoption placed for adoption adopted reversed adoption5

2009 45 10 0 0 45 2010 60 n/a n/a n/a n/a 2011 45 n/a n/a n/a n/a

Number Year in which the child was placed for adoption, adopted, for whom the decision was reversed or was waiting to be adopted 2010 Number of children Year in which the in foster care for decision was made whom the decision that the child should was made that they Number for whom Number at be placed for should be placed for Number of children Number of children the decision was 31 March awaiting adoption adoption placed for adoption adopted reversed adoption5

2009 45 30 15 0 35 2010 60 15 0 0 60 2011 45 n/a n/a n/a n/a 767W Written Answers21 MARCH 2012 Written Answers 768W

Number Year in which the child was placed for adoption, adopted, for whom the decision was reversed or was waiting to be adopted 2011 Number of children Year in which the in foster care for decision was made whom the decision that the child should was made that they Number for whom Number at be placed for should be placed for Number of children Number of children the decision was 31 March awaiting adoption adoption placed for adoption adopted reversed adoption5

2009 45 5 20 0 10 2010 60 25 20 5 30 2011 45 20 0 0 45 n/a = Not applicable 1 Numbers have been rounded to the nearest 5. Consequently, the figures may not add up. 2 Only children looked after in a foster care placement when the decision was made that they should be placed for adoption have been counted. 3 For children living with the family intending to adopt them (ie placed for adoption), it is for the prospective adopters to apply to court for an adoption order. 4 Children waiting to be placed for adoption may either be wailing for a placement order to be made by the court or be in the process of being matched with prospective adopters. 5 The number of children at 31 March awaiting adoption is calculated as the total number of children in foster care for whom the decision was made that they should be placed for adoption, minus the total number of children who were adopted or for whom the decision was reversed. The number includes children who have been placed for adoption, but for whom an adoption order has not yet been made, as well as children who have not yet been placed. Source: SSDA 903

Information on adopted children can be found in the Pupils: Peterborough Statistical First Release ’Children Looked After by Local Authorities in England (including adoption and Mr Stewart Jackson: To ask the Secretary of State for care leavers)—year ending 31 March 2011’, which is Education how much funding each (a) primary and available on the Department’s website via the following (b) secondary school in Peterborough local education link: authority area had received in respect of the pupil premium at 28 February 2012; and if he will make a http://www.education.gov.uk/rsgateway/DB/SFR/s001026/ statement. [100841] index.shtml Sarah Teather: The Pupil Premium was introduced in April 2011 and allocations have so far been made for Mass Media the 2011-12 financial year only. Pupil Premium funding is provided in respect of pupils known to be eligible for Free School Meals (FSM), children in care who have Dr Whiteford: To ask the Secretary of State for been continuously looked after for at least six months Education what media monitoring services his Department and children whose parents are serving in the armed has purchased in each of the last five years. [100889] forces. In 2011-12 the total Pupil Premium allocation for Tim Loughton: The Department for Education press Peterborough local authority is £2,752,000, in respect office has used the same media monitoring services for of 5,860 eligible pupils. This includes 5,299 pupils eligible each of the last five years. These services are set out as for the Deprivation Premium, 371 eligible for the Looked follows: after Premium and 189 eligible for the Service Premium. The school level allocations are provided at Annex A. Durrants, who are now part of the Gorkana Group, provide national and regional newspaper cuttings on a daily basis. It is not possible to present at school level eligible Looked after Children, service children and FSM pupils The Cabinet Office Media Monitoring Unit provides TV and recorded on the Alternative Provision census. This is radio summaries and a transcript service. because of the way we collect data for these pupils and Kantar Monitoring provide regional broadcast summaries. for data protection reasons.

State-funded primary, secondary and special schools, and pupil referral units1,2,3,4: number of pupils eligible for the pupil premium in 2011/125,6, Peterborough Deprivation Pupil Premium7 Number of pupils eligible Allocation for the for the Deprivation Pupil Deprivation Pupil URN LAEstab School Name Number on roll8 Premium Premium 2011/129 (£)

110601 8741101 The Pupil Referral 10— 10— 10— Service, Peterborough 110683 8742215 Old Fletton Primary 257 75 36,600 School 110691 8742223 Southfields Primary 338 91 44,408 School 769W Written Answers21 MARCH 2012 Written Answers 770W

State-funded primary, secondary and special schools, and pupil referral units1,2,3,4: number of pupils eligible for the pupil premium in 2011/125,6, Peterborough Deprivation Pupil Premium7 Number of pupils eligible Allocation for the for the Deprivation Pupil Deprivation Pupil URN LAEstab School Name Number on roll8 Premium Premium 2011/129 (£)

110692 8742225 Woodston Primary 170 45 21,960 School 110699 8742233 John Clare Primary 99 11— 11— School 110700 8742234 Northborough Primary 193 12 5,856 School 110705 8742244 The Duke of Bedford 180 11 5,368 Primary School 110710 8742251 Oakdale Primary School 199 8 3,904 110718 8742263 Dogsthorpe Junior 338 100 48,800 School 110719 8742264 Dogsthorpe Infant 267 65 31,720 School 110722 8742269 Brewster Avenue Infant 166 28 13,664 School 110723 8742270 Queen’s Drive Infant 213 31 15,128 School 110726 8742274 West Town Primary 304 54 26,352 School 110727 8742275 Newark Hill Primary 408 64 31,232 School 110730 8742279 Gunthorpe Primary 295.6 74.6 36,405 School 110731 8742286 Welland Primary School 189 100 48,800 110732 8742288 Bishop Creighton 197 58 28,304 Primary School 110734 8742295 Norwood Primary School 200 21 10,248 110735 8742296 Braybrook Primary 197 59 28,792 School 110736 8742297 Longthorpe Primary 417 47 22,936 School 110743 8742307 Leighton Primary School 329.5 115.64 56,432 110747 8742313 Winyates Primary School 195 114 55,632 110749 8742316 Welbourne Primary 127.5 37 18,056 School 110753 8742320 Matley Primary School 245 83 40,504 110755 8742324 Wittering Primary School 288 9 4,392 110756 8742325 The Beeches Primary 520 104 50,752 School 110757 8742326 Gladstone Primary 416 58 28,304 School 110761 8742330 Ravensthorpe Primary 191.9 47 22,936 School 110764 8742334 Parnwell Primary School 237 94 45,872 110767 8742337 Eyrescroft Primary 375.5 109 53,192 School 110768 8742338 Highlees Community 287 141 68,808 Primary School 110774 8742445 Thorpe Primary School 421 56 27,328 110778 8742449 Paston Ridings Primary 365 152 74,176 School 110779 8742450 Abbotsmede Primary 275 82 40,016 School 130930 8742451 Werrington Primary 413 30 14,640 School 131693 8742453 Heritage Park Primary 196 27 13,176 School 131240 8742454 Watergall Primary School 251.8 110.76 54,051 131719 8742455 Middleton Primary 277.5 99 48,312 School 132763 8742456 Hampton Hargate 520 60 29,280 Primary School 133537 8742457 Nene Valley Primary 234 18 8,784 School 771W Written Answers21 MARCH 2012 Written Answers 772W

State-funded primary, secondary and special schools, and pupil referral units1,2,3,4: number of pupils eligible for the pupil premium in 2011/125,6, Peterborough Deprivation Pupil Premium7 Number of pupils eligible Allocation for the for the Deprivation Pupil Deprivation Pupil URN LAEstab School Name Number on roll8 Premium Premium 2011/129 (£)

134306 8742458 Hampton Vale Primary 452 49 23,912 School 110819 8743073 Stanground St Johns 175 65 31,720 CofE Controlled Primary School 110822 8743076 St Botolph’s CofE 379 28 13,664 (Controlled) Primary School 110823 8743077 Barnack CofE 111 14 6,832 (Controlled) Primary School 110824 8743078 Castor CofE Primary 150 11 5,368 School 110825 8743079 Eye CofE Primary School 317 45 21,960 110826 8743080 Newborough CofE 185 11— 11— Primary School 110851 8743374 Peakirk-Cum-Glinton 196 12 5,856 CofE Primary School 110852 8743376 All Saints’ CofE (Aided) 242 34 16,592 Junior School 110853 8743377 St Augustine’s CofE 184 43 20,984 (Voluntary Aided) Junior School 110854 8743378 St Thomas More RC 406 74 36,112 Primary School 110855 8743379 Sacred Heart RC Primary 202 14 6,832 School 110856 8743380 St John’s Church School 232 110 53,680 110858 8743382 William Law CofE 549 43 20,984 (Aided) Primary School 134461 8743384 Fulbridge Primary School 623 155 75,640 135196 8743385 Discovery Primary 378 84 40,992 School 110882 8744081 Ken Stimpson 837 128 62,464 Community School 135002 8744082 Hampton College 650 80 39,040 130389 8744083 The Voyager School 1278 273 133,224 110893 8745205 Orton Wistow Primary 307 9 4,392 School 136398 8745404 The King’s School (the 730 24 11,712 Cathedral School) 110899 8745405 Jack Hunt School 1399 282 137,616 110904 8745410 Stanground College 1219 176 85,888 110907 8745413 St John Fisher Catholic 639 158 77,104 High School 110908 8745414 Orton Longueville School 732 114 55,632 136266 8745417 Arthur Mellows Village 1259 55 26,840 College 135263 8746905 Thomas Deacon 1686.5 338 164,944 Academy 135980 8746906 Ormiston Bushfield 648.5 179 87,352 Academy 110943 8747013 Marshfields School 10— 10— 10— 110948 8747020 Heltwate School 10— 10— 10— 134272 8747024 The Phoenix School 10— 10— 10— 773W Written Answers21 MARCH 2012 Written Answers 774W

State-funded primary, secondary and special schools, and pupil referral units1,2,3,4: number of pupils eligible for the pupil premium in 2011/125,6, Peterborough Deprivation Pupil Premium7 Number of pupils eligible Allocation for the for the Deprivation Pupil Deprivation Pupil URN LAEstab School Name Number on roll8 Premium Premium 2011/129 (£)

135386 8747025 Nene Gate 10— 10— 10— 1 Includes middle schools as deemed. 2 Includes primary academies. 3 Includes city technology colleges and secondary academies. 4 Includes maintained special schools, excludes general hospital schools and non-maintained special schools. 5 The number of eligible Looked After Children and FSM pupils recorded on the Alternative Provision census are not included in school level tables (although are eligible for the pupil premium) as they are taken from local authority returns. 6 The number of service children are not provided at school level due to data protection issues. 7 Full time equivalent (FTE) number of pupils known to be eligible for and claiming free school meals in year groups R-11, (where National Curriculum year groups do not apply pupils aged four to 15). For all those aged five and over includes sole or dual main registrations only. In Pupil Referral Units, FTE pupils aged four (all registration types) and headcount of pupils aged five to 15 (sole or dual main registrations as well as pupils who are registered with other providers and further education colleges) known to be eligible for and claiming free school meals. 8 Full time equivalent (FTE) pupils in year groups R-11 (where National Curriculum year groups do not apply pupils aged four to 15). For all those aged five and over includes sole or dual main registrations only. In Pupil Referral Units, FTE pupils aged four (all registration types) and headcount of pupils aged five to 15 (sole or dual main registrations as well as pupils who are registered with other providers and further education colleges). 9 Each FSM eligible pupil will attract £488 through the pupil premium. For pupils in maintained primary and secondary schools funding will be passed to schools via the local authorities. Academies will receive funding from the YPLA. For pupils in maintained special schools and PRU’s funding will be allocated to local authorities to decide whether to pass on funding to the education setting or to hold back funding to manage centrally for the benefit of those pupils it has responsibility for. 10 Allocations for these schools are not included as they are either a maintained special school or PRU. The premium for these establishments is held with the local authority (please see the conditions of grant). 11 Less than five pupils or a percentage based on less than five pupils or an allocation amount based on less than five pupils. Source: January 2011 School Census

Schools: Asbestos Schools: Fire Sprinklers

Ian Lavery: To ask the Secretary of State for Education Mr Burley: To ask the Secretary of State for Education (1) what level of funds his Department advise local what recent representations his Department has received authorities to hold in respect of asbestos-related claims on the mandatory installation of fire sprinklers in new made by former school staff and pupils; [100811] school buildings. [100266] (2) what assessment his Department has made of the Mr Gibb: The Department has not received any recent availability of employer and public liability insurance direct representations on the mandatory installation of for asbestos exposure risks in academies and free fire sprinklers in new school buildings. We have recently schools; [100812] received a copy of a letter from Staffordshire Fire and (3) what (a) arrangements his Department has made Rescue Services to the principal of Staffordshire University and (b) guidance his Department has issued for academies Academy and others about sprinklers. The Parliamentary and free schools in respect of employer and public Under-Secretary of State for Schools, my noble Friend liability insurance cover for asbestos exposure risks to Lord Hill of Oareford, will be responding in due course. school staff, non-employees and pupils; [100813] We did recently consult on proposals to revise the school (4) how many local authorities are unable to obtain premises regulations: included in this was a proposal to public liability insurance for asbestos exposure risks to remove specific references to fire safety in schools, as visitors and pupils in their schools; [100814] such requirements are adequately covered in the Regulatory reform (Fire Safety) Order 2005. Around 14% of (5) how many local authorities are unable to obtain respondents objected to this proposal. employers’ liability insurance for asbestos exposure risks to school staff; [100815] Special Educational Needs: Complaints (6) how many local authorities are self-insured for (a) employer and (b) public liability asbestos exposure Tim Farron: To ask the Secretary of State for Education risks to visitors and pupils. [100816] what information his Department holds on the amount spent on handling complaints relating to care packages Mr Gibb: Local authorities and schools are responsible allocated to severely disabled children by each local for making their own arrangements for insurance. As authority in England in each of the last five years. such the Department does not maintain central records [100820] on insurance coverage in place. Tim Loughton [holding answer 19 March 2012]: This No guidance has been issued to local authorities, information is not collected centrally. However, local academies or free schools in respect of insurance cover authorities must monitor the complaints arrangements for asbestos exposure risks. that they have in place. They must keep a record of: Discussions with insurers indicate that asbestos is not each representation/complaint received; considered to be a barrier to obtaining employer liability the outcome in each case, that is, the decisions made in insurance, though there is a general asbestos exclusion response to the representation/complaint and any action to be for public liability insurance. taken; and 775W Written Answers21 MARCH 2012 Written Answers 776W

whether there was compliance with the time limits. (VCTs), increasing rate of income tax relief for EIS to 30% and Information on the numbers of complaints and outcomes increasing amounts that can be invested in qualifying companies and the size of qualifying companies (subject to state-aid clearance). must be published in an annual report. These changes will provide an incentive for investment into a broader range of firms than previously, including those at later stages of growth. TREASURY The Government inspired the establishment of the Business Growth Fund as a long-term intervention, funded fully by the Air Passenger Duty: Northern Ireland banks, and designed to provide finance for firms seeking growth capital helping to fund the recovery which fall between initiatives for small business support and those for larger companies. Five Naomi Long: To ask the Chancellor of the Exchequer banks agreed to commit £2.5 billion between them over the next if he will consider bringing forward proposals to change decade; the fund was launched on 19 May 2011. Of the six the level of air passenger duty paid at band A by investments already made to date, one investment is in an ICT passengers travelling from Northern Ireland to destinations company. within the UK. [101238] It is also worth highlighting the work of the Technology Strategy Board (TSB). ICT is one of the priority areas of the TSB Miss Chloe Smith: The Government set out Air Passenger and it is engaged in a range of activities which have a strong ICT Duty (APD) rates for 2012-13 and 2013-14 at Budget component, including Knowledge Transfer Networks and has 2012, including the band A rate that applies to all supported ICT projects in a number of areas. The TSB recently departures from the UK. Budget 2012 also confirms launched a TechCity LaunchPad competition to fund R&D projects aimed at developing a digital product or service to proof-of-concept that the power to set APD rates for direct long haul and/or a user-facing trial. The competition was also designed flights departing from Northern Ireland will be devolved such that applicants could use the endorsement of Technology to the Northern Ireland Assembly and provided for in Strategy Board assessment, to secure funding from outside their the Finance Bill 2012. business if required, either from new business partners or from angel or venture capital investors. Gift Aid Furthermore, there are plans in place, as stated in UKTI’s strategy, ″Britain open for business″, to take forward an initiative Gordon Banks: To ask the Chancellor of the Exchequer to help link up innovative and high growth SMEs with overseas what the value was of Gift Aid contributions made by venture capital. One of the aims of this initiative is to strengthen non-taxpayers in error and then reported by HM Revenue the links between overseas technology clusters such as Silicon Valley, where there are concentrations of venture capital operations, and Customs in 2010-11. [101236] and UK technology hotspots such as Cambridge and Tech City in the East End of London. Miss Chloe Smith: This information is not held centrally. Errors resulting in the recovery of tax are included in (b) The Home Office has informed me that Tier 2 of the HMRC reports of additional tax yield. the Points-Based System enables skilled non-EEA nationals to work in the UK. The ICT sector is the largest user of ICT this route. Income Tax: Tax Rates and Bands Stephen Mosley: To ask the Chancellor of the Exchequer what steps his Department is taking to support the ICT Annette Brooke: To ask the Chancellor of the Exchequer sector by (a) encouraging venture capital funding at (1) if he will estimate the number of firefighters in each the later stages of small and medium-sized enterprises (a) region and (b) local authority area who will no growth and (b) enabling greater global workforce mobility. longer be eligible to pay income tax once the income tax [100290] threshold is set at £10,000; [101228] Mr Prisk: I have been asked to reply on behalf of the (2) if he will estimate the number of firefighters who Department for Business, Innovation and Skills. benefited from the increase in the personal allowance of income tax in 2011-12; and if he will estimate the (a) The Government have undertaken a range of likely number of firefighters who will benefit from the measures to encourage venture capital funding at later increase in 2012-13; [101229] stages of small and medium-sized enterprises (SMEs) growth. (3) if he will estimate the number of local government staff in each (a) region and (b) local authority area Government support for venture capital investment includes firms at the early stage of growth and firms seeking follow-on who will no longer be eligible to pay income tax following funding at later stages as the firm develops, through Enterprise the increase in the personal allowance in April 2012; Capital Funds (ECFs) and the UK Innovation Investment Fund [101230] (″UKIIF″ or ″the Fund″). (4) if he will estimate the number of local government ECFs provide approved private sector investors with access to staff in each (a) region and (b) local authority area Government funding for investment in SMEs (of between £250,000 who will no longer be eligible to pay income tax once and £2 million). Government have increased their commitment to the income tax threshold is set at £10,000; [101231] the ECF programme by £200 million over the four years to 2014-15, providing for more than £300 million of venture capital (5) if he will estimate the number of local government investment. staff who benefited from the increase in the personal The £330 million UK Innovation Investment Fund is investing allowance of income tax in 2011-12; and if he will in venture capital funds that support technology-based businesses— estimate the likely number of local government staff including ICT businesses—with high-growth potential that are who will benefit from the increase in 2012-13. [101232] finding it difficult to raise finance in the current economic climate. Government are promoting individual venture capital investment Mr Gauke: The June 2010 Budget announced a £1,000 in SMEs through the tax system. Government have reformed the cash increase in the personal allowance for under 65s to Enterprise Investment Scheme (EIS) and Venture Capital Trusts £7,475 in 2011-1-2 (£820 above the previous Government’s 777W Written Answers21 MARCH 2012 Written Answers 778W plans), with the benefits focused on individuals on low scheme to any contracted provider of public services. and middle incomes through accompanying changes to The provision of any services under a contract, by a the basic rate limit and national insurance upper earnings charity or a business, will normally be regarded as a and profit limits. business activity and thus within the scope of VAT. The 2011 Budget announced a £630 cash increase in Therefore, if the services provided are taxable (in other the personal allowance for under 65s to £8,105 in 2012-13 words, they are not specifically exempted from VAT) (£240 above indexation), with an equivalent reduction the provider will be able to recover their VAT costs in the basic rate limit to leave the higher rate threshold through the normal VAT system. unchanged. However, if the services provided are VAT exempt, As a result of these measures, the Government estimate any form of VAT refund is prohibited under EU VAT that 22.6 million basic rate taxpayers will benefit in law. Where a provider does incur irrecoverable VAT in 2011 -12, among which 830,000 of the lowest income the provision of public services, these costs should be taxpayers will be removed from tax altogether. taken into account by the contracting public sector organisation when agreeing funding. In 2012-13 the Government estimate that 25 million taxpayers will benefit, among which 260,000 of the lowest income taxpayers will be removed from tax altogether. CABINET OFFICE These estimates are based on the 2007-08 Survey of Personal Incomes, projected using economic assumptions Voluntary and Community Sector consistent with the Office for Budget Responsibility’s March 2011 economic and fiscal outlook. 7. Helen Goodman: To ask the Minister for the Cabinet The information requested is not available specifically Office what assessment he has made of the state of the for fire fighters or local government staff. community and voluntary sector in the North. [100943] The Government are committed to supporting lower and middle income earners by raising the personal Mr Hurd: I have visited several areas in the North allowance to £10,000, and removing the lowest income and received a large number of representations and the individuals out of income tax. Decisions on future sector which does an incredibly important job in supporting changes in the personal allowance will be taken as part communities in the North. of the annual Budget process in the context of the wider The North is more dependent on public sector income public finances. than the Midlands and the South, that is why the Inheritance Tax Cabinet Office provided over a third its Transition Fund money to the North. The North has also been allocated the same amount of community first money John Stevenson: To ask the Chancellor of the Exchequer as the rest of the country put together. how many taxable estates there were in (a) 2008-09, (b) 2009-10 and (c) 2010-11. [100148] Open Source Software Mr Gauke: The number of taxable estates are provided in the National Statistics table ‘Numbers of taxpayers 10. John Pugh: To ask the Minister for the Cabinet and registered traders’ which can be found on the Office what recent assessment he has made of Government HMRC website at: policy on open source software and open standards; and if he will make a statement. [100946] http://www.hmrc.gov.uk/stats/tax_receipts/table1-4.pdf

VAT: Third Sector Mr Maude: We have always made clear that, where appropriate, Government will procure open source solutions. Alun Cairns: To ask the Chancellor of the Exchequer Open source products are used in the delivery, of if he will review his policy on VAT insofar as it affects huge database programmes—such as the Indian Identity charitable organisations who serve their local communities. card scheme—at a greater scale and for much less cost [99374] than we have experienced in the past. Gov.uk, the new platform for publishing in UK Mr Gauke: The Government value the contribution Government employs the same open source technologies. of charities across a wide spectrum of national life and It’s being delivered for a fraction of the cost of interests. previous Government web schemes. The UK has one of the most generous tax systems for charities in the world. Existing reliefs for charities are Public Sector Procurement worth over £3 billion a year. Within this, are existing VAT reliefs worth over £200 million per year. These 12. Guto Bebb: To ask the Minister for the Cabinet include zero rates for charities on sales of donated Office what recent progress he has made on opening up goods, medical equipment and the construction of public sector procurement to small and medium-sized charitable buildings. In addition Gift Aid, the largest enterprises; [100948] single relief, is now worth nearly £1 billion to charities each year. 14. Julian Smith: To ask the Minister for the Cabinet In terms of whether we could extend the VAT reliefs Office what recent progress he has made on opening up further; in many cases, EU VAT rules mean that it public sector procurement to small and medium-sized would not be necessary or possible to provide a refund enterprises; [100950] 779W Written Answers21 MARCH 2012 Written Answers 780W

15. Christopher Pincher: To ask the Minister for the As an alternative, we have provided the number of females and Cabinet Office what recent progress he has made on ethnic minorities claiming Jobseeker’s Allowance (JSA) for the opening up public sector procurement to small and Ladywood constituency. The number of females claiming JSA IN February 2012 is 2,701 and the number of ethnic minorities medium-sized enterprises. [100951] claiming JSA in January 2012 is 6,145, the most recent dates for which figures are available. Mr Maude: I refer my hon. Friend to the answer I National and local area estimates for many labour market gave to questions six and nine at oral questions earlier statistics, including employment, unemployment and claimant today. count are available on the NOMIS website at: http://www.nomisweb.co.uk Population: Unitary Councils Voluntary Work John Stevenson: To ask the Minister for the Cabinet Office how many unitary authorities have populations Simon Hart: To ask the Minister for the Cabinet (a) under 150,000, (b) between 150,000 and 250,000 Office pursuant to the answer of 27 February 2012, Official Report, columns 70-1W, on volunteering, how and (c) over 250,000. [100838] many of the 163,000 people volunteering for 35 hours a week or more are also claiming some form of benefit. Mr Hurd: The information requested falls within the [99881] responsibility of the UK Statistics Authority. I have asked the authority to reply. Chris Grayling: I have been asked to reply on behalf Letter from Stephen Penneck, dated March 2012: of the Department for Work and Pensions. As Director General for the Office for National Statistics, The information requested is not available because I have been asked to reply to your Parliamentary Question volunteering is not routinely recorded for all benefit asking how many unitary authorities have populations claimants. (a) under 150,000, (b) 150,000 to 250,000 and (c) over However, the Department does hold information on 250,000 (100838). the number of people who have volunteered for a “Get Table 1 shows the number of unitary authorities in Britain Working Work Experience Placement” and the England and Wales whose estimated usually resident data can be found here: population in mid-2010 fell within the categories specified http://statistics.dwp.gov.uk/asd/asd1/pwp/pwp_gbw_feb12.pdf above. These are the latest available population estimates. I have placed a copy of this document in the Library. Table 1: Counts of unitary authorities in England and Wales by population size, mid-2010 Population size Count of unitary authorities JUSTICE All 78 Claims Management Services Under 150,000 32 150,000 to 250,000 28 Mr Slaughter: To ask the Secretary of State for Over 250,000 18 Justice when he plans to consult on the regulation of Source: claims management companies. [101269] Office for National Statistics

Unemployment Mr Djanogly: I plan to issue a public consultation in the summer on the conduct requirements which regulate claims management companies activities. A preliminary Shabana Mahmood: To ask the Minister for the Cabinet consultation and call for evidence has already been Office (1) if he will estimate the level of female carried out with key industry stakeholders and the unemployment in Birmingham, Ladywood constituency; outcome of this will inform the full consultation. Any [101213] proposed changes to the requirements on claims (2) if he will estimate the level of ethnic minority management companies are subject to scrutiny by the unemployment in Birmingham, Ladywood constituency. Regulatory Policy Committee and approval by the Reducing [101214] Regulation Cabinet sub-Committee.

Mr Hurd: The information requested falls within the Mr Slaughter: To ask the Secretary of State for responsibility of the UK Statistics Authority. I have Justice what steps his Department is taking to ensure asked the authority to reply. consumers are aware of the free alternative to using claims management companies. [101271] Letter from Stephen Penneck, dated March 2010: As Director General for the Office for National Statistics, I Mr Djanogly: Claims management companies are have been asked to reply to your Parliamentary Questions asking required to make explicit to prospective clients the right what is the level of female unemployment in Birmingham, Ladywood constituency; and the level of ethnic minority unemployment in to seek further advice or to shop around, and if they Birmingham, Ladywood constituency (101213 and 101214). give advice to clients, companies must also inform them of the existence of the Financial Ombudsman Service. The Office for National Statistics (ONS) compiles unemployment statistics for local areas from the Annual Population Survey The Claims Management Regulation Unit (“the Unit”) following International Labour Organisation (ILO) definitions. recognises the importance of making consumers aware However, estimates of unemployment for the requested geography that there is an alternative to using a paid representative are not available. to make a claim in relation to financial products and 781W Written Answers21 MARCH 2012 Written Answers 782W services and will take action against companies that years consisted of actions against the same employer breach these requirements. The Unit has produced specific according to the different types of jurisdiction. [101129] guidance for consumers, setting out the wide range of self-help resources available from the Financial Ombudsman Mr Djanogly: Claims to employment tribunals may Service and consumer organisations. be classified into two broad categories: singles and multiples. Multiples claims are where two or more people bring claims, involving one or more jurisdiction(s), and Driving Offences: Mobile Phones usually against a single employer (but not necessarily so, for instance in transfer of undertaking cases). To be Mrs Moon: To ask the Secretary of State for Justice joined in a multiple, individual claims must arise out of how many prosecutions there have been for driving the same or very similar circumstances. As a multiple, without due care and attention as a result of using a the component claims are processed, and judicially mobile telephone since 2011; and if he will make a managed, together. statement. [100727] For the purposes of this answer, we have defined “multiple claims” as the individual component claims Mr Blunt: The information requested on prosecutions brought or handled within a multiple, and “multiple for driving without due care and attention as a result of claim cases” as the combined groupings formed by the using a mobile telephone since 2011 will be available component claims. following the release of the annual court proceedings data for 2011, which are planned for publication on 24 The following table sets out, respectively for each of May 2012. the last five complete financial years, and in relation only to multiple claims, the number of jurisdictional complaints accepted, broken down by jurisdictional Employment Tribunals Service type. The table also includes a breakdown of the number of multiples claims cases, i.e. the number of multiple Ian Murray: To ask the Secretary of State for Justice claims consisting of actions against the same employer. what the jurisdictional complaints for the multiple claims The jurisdictional mix of such cases will be exactly the accepted in employment tribunals were in the last five same as for multiple claims generally, given that they years; and how many multiple claims in the last five are exactly the same cohort of jurisdictional complaints.

Multiple claims1 accepted 2005-06 to 2010-11 Financial year 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Total multiple claims accepted 62,500 78,400 133,500 88,000 164,800 157,900 Total multiple claims cases accepted 5,900 6,700 6,600 7,400 7,400 5,900

Jurisdiction mix of claims accepted Nature of claim: Unfair dismissal 10,100 11,600 8,800 14,100 12,200 11,000 Unauthorised deductions (formerly Wages Act)2 17,900 19,000 17,900 15,200 52,300 50,400 Breach of contract 9,600 10,400 8,200 12,000 17,400 13,400 Sex discrimination 10,500 23,100 22,000 13,700 11,900 13,600 Working time directive2 26,800 11,400 45,700 11,800 77,500 97,500 Redundancy pay 4,300 4,400 3,900 5,400 10,400 8,900 Disability discrimination 830 1,000 1,100 1,200 900 780 Redundancy—failure to inform and consult 3,700 4,500 4,200 10,800 6,600 7,000 Equal pay 15,400 42,800 59,000 43,900 36,600 34,000 Race discrimination 1,500 860 920 1,100 980 1,000 Written statement of terms and conditions 1,500 1,100 2,400 940 1,400 1,100 Written statement of reasons for dismissal 170 200 220 210 210 130 Written pay statement 140 150 200 210 190 220 Transfer of an undertaking—failure to inform and consult 760 860 1,000 970 1,300 1,300 Suffer a detriment/unfair dismissal—pregnancy 170 180 200 240 200 420 Part time workers regulations 120 440 230 230 120 1,300 National minimum wage 170 460 120 300 110 89 Discrimination on grounds of religion or belief 67 120 160 250 190 150 Discrimination on grounds of sexual orientation 65 96 140 130 130 84 Age discrimination 0 460 1,100 1,000 1,900 4,500 Others3 1,800 1,200 10,100 5,200 3,600 1,400

Total 105,700 134,300 187,600 139,000 236,100 248,400 783W Written Answers21 MARCH 2012 Written Answers 784W

1 Multiples claims are where two or more people bring claims, involving one or more jurisdiction(s), and usually against a single employer (but not necessarily so, for instance in transfer of undertaking cases). To be joined in a multiple, individual claims must arise out of the same or very similar circumstances. As a multiple, the component claims are processed, and judicially managed, together. The terms ‘singles’ and ‘multiples’ are widely used and understood in the context of employment tribunal statistics. They are also defined in regular Her Majesty’s Courts and Tribunals Service (HMCTS) publications. 2 Jurisdictional claims accepted for 2007-08, 2009-10 and 2010-11 include resubmitted multiple jurisdictional claims 3 The increase in 2007-08 and 2008-09 are due to an increase in claims relating to trade union membership. Source: ET Database

Presumption of Death (Scotland) Act 1997 how many performance management meetings between the administrator and the contractor have been held Ann McKechin: To ask the Secretary of State for since the framework agreement went operational nationwide Justice what lessons he has learned from the Presumption on 30 January 2012; and when the next meeting will be of Death (Scotland) Act 1997; and if he will bring held; [101267] forward proposals to implement similar legislation for (2) with reference to the provisional framework agreement the rest of the UK. [99416] between his Department and Applied Language Solutions that the contractor will provide management reports Mr Djanogly: The Justice Select Committee through the web-based portal, what management reports recommended, in its report of 22 February 2012 on have been submitted to date containing information on ’Presumption of Death’, that the Ministry of Justice (a) the breakdown of available interpreter numbers by introduce legislation based on the Presumption of Death region, language, tier and vetting status, (b) complaints (Scotland) Act 1977 in order to extend to English and received, upheld, timescale for resolution and outcome, Welsh families the protection that is available to Scottish per collaborative partner, (c) the number of new interpreters and, under the Presumption of Death Act (Northern added per tier per region, (d) gaps in availability of Ireland) 2009, Northern Irish families. We are currently languages per region, (e) report status on performance considering the Committee’s report and hope to announce against collaborative partner key performance indicators, our initial conclusions in our response to it before the (f) telephone interpreting: monthly breakdown of number end of the current Session. of calls, number of minutes, total price, per collaborative Prisons: Drugs partner, (g) translation: monthly breakdown of number of single linguist tasks, number of second linguist proof Keith Vaz: To ask the Secretary of State for Justice reads, total price and discounts for translation memory, how many prisoners left prison with a drug addiction per collaborative partner, (h) transcription: monthly in the latest period for which figures are available. breakdown of number of tasks and total price, per [100800] collaborative partner and (i) British Sign Language/deaf blind: monthly breakdown of number of assignments, Paul Burstow: I have been asked to reply on behalf of assignment costs, and travel costs, per collaborative the Department of Health. partner; and if he will place those reports in the Library; We do not hold these figures centrally. The National [101268] Drug Treatment Monitoring System will be introduced across all English prisons and young offender institutions Mr Blunt: The information requested is as follows: from April 2012. This will record the number of individuals (1) Regular weekly and often twice weekly meetings leaving prison while receiving either drug or alcohol are held between the administrator and the contractor. treatment. It will not however, generate data on dependence Since 30 January, eight meetings have been held and among the entire population of offenders leaving prisons. weekly meetings will continue to take place for the This is because drug assessments are not routinely foreseeable future. carried out on every prisoner prior to release. (2) The Ministry of Justice are receiving daily Any prisoner can self refer for drug treatment at any management information from the contractor concentrating point during an episode of imprisonment, including on priority areas of interpreter availability and fulfilment immediately prior to release. National clinical guidelines of bookings. I have no plans to place these reports in give clinicians information on how they can undertake the Library. On 20 March 2011, Official Report, column pre-release assessment and treatments. 672W, I confirmed that the Chief Statistician of the From April 2013, the National Health Service Ministry of Justice is considering what interpreter data Commissioning Board (NHSCB) will be responsible for can be published by the end of May 2012. the commissioning of health services for those in custody. The NHSCB will undertake commissioning responsibilities for prison substance misuse services on behalf of Public HOME DEPARTMENT Health England and will work closely with local substance misuse commissioners and clinical commissioning groups Alcoholic Drinks: Pricing to maintain a local approach and optimise continuity of treatment. Mr Brady: To ask the Secretary of State for the Home Translation Services Department what assessment she has made of the potential financial effects of introducing a minimum price for Mr Slaughter: To ask the Secretary of State for alcohol on (a) the UK beverage alcohol manufacturing Justice (1) with reference to section 1 of the Administrator’s industry, (b) the on-trade, (c) the off-trade and (d) the Monitoring Requirements of the framework agreement average consumer of alcohol; and if she will make a between his Department and Applied Language Solutions, statement. [100553] 785W Written Answers21 MARCH 2012 Written Answers 786W

James Brokenshire: The Government conducts impact UK Border Agency would need to analyse a large assessments and public consultations prior to introducing volume of paper and electronic records, which would any new alcohol legislation. incur a disproportionate cost. The Government will set out its wide range of action Public protection is the primary consideration when to tackle excessive alcohol consumption in its forthcoming presenting information at deportation cases. The UK alcohol strategy. Border Agency will provide all relevant evidence, including convictions and other information relevant to whether British Overseas Citizenship: Malaysia an individual’s presence is conducive to the public good. Simon Hughes: To ask the Secretary of State for the Home Department on how many occasions (a) the Immigration Controls Minister for Immigration and (b) officials in her Department have met representatives of the Malaysian Ian Paisley: To ask the Secretary of State for the Government to discuss Malaysian British overseas citizens; Home Department what assessment the UK Border and on what dates. [95712] Agency (UKBA) has made of the balance of power in the employee/employer relationship when (a) people Damian Green [holding answer 22 February 2012]: on a work permit/Tier 2 who lose their job also lose the Home Office Ministers and officials have meetings with visa that entitles them to reside in the UK and (b) a a wide variety of international partners, as well as work permit/Tier 2 employee is obliged to work for the organisations and individuals in the public and private employer that recruits him or her and cannot move to sectors, as part of the process of policy development another employer unless the UKBA agrees to the and delivery.As was the case with previous Administrations, transfer. [100606] it is not the Government’s practice to provide details of all such meetings. Damian Green: Non European Economic Area (EEA) Nationals entering the UK to undertake employment Cybercrime are protected by UK employment law. They have the same employment rights as settled workers. If an individual Chi Onwurah: To ask the Secretary of State for the loses a job under the Tier 2/work permit arrangements, Home Department what assessment she has made of their leave to remain in the UK is curtailed to give them the status of Domain Name System Security 60 days to find alternative employment or make Extensions and its impact on cybercrime. [100754] arrangements to leave the UK. Non EEA nationals entering the UK to undertake employment do so on the James Brokenshire [holding answer 19 March 2012]: basis of taking a specific job with a specific sponsor. Domain Name System Security Extensions and related Individuals can change employers but must obtain measures improve security and trust over the Domain permission from the UK Border Agency before doing Name System, a critical piece of the internet. In anticipation so. This is to ensure that the job has been offered to of the new generic Top Level Domains (such as __.london, resident workers and is at the appropriate skill level and and __.xxx ) and Internationalised Domain Names (for being paid the appropriate rate. This safeguards example, those in Cyrillic, Chinese or Arabic) shortly to opportunities for resident workers as well as protecting be released by the Internet Corporation for Assigned non EEA workers from being underpaid. It is the UK Names and Numbers (ICANN), Domain Name System Border Agency’s duty to ensure that non EEA nationals Security Extensions will promote a safer internet and entering the UK comply with their terms and conditions restrict the opportunity for cyber criminals to harm of stay and sponsors adhere to the obligations to which online user confidence. they have signed up. Where overseas workers and sponsors The Serious Organised Crime Agency (SOCA) is abuse the immigration rules the UK Border Agency will actively engaging with the UK internet service provider take appropriate compliance action. community to promote voluntary codes of conduct, encouraging industry to implement security measures Independent Police Complaints Commission to ensure our citizens are protected from the ongoing threat of cyber crime. John Howell: To ask the Secretary of State for the Home Department how many current or former Deportation: Offenders members of the police service serve on the Independent Police Complaints Commission; and in what capacity Jeremy Corbyn: To ask the Secretary of State for the they serve. [99360] Home Department in contesting deportation appeals by those convicted of criminal offences before the Nick Herbert: The Independent Police Complaints first-tier and upper tribunal of the Asylum and Commission Chief Executive has written to the hon. Immigration Chamber, for what reason and on how Member with the information sought. A copy of the many occasions the UK Border Agency has disclosed letter will be placed in the House Library. evidence from police officers and field intelligence officers to judges that had not been considered as part Information Commissioner of their criminal trials. [100771] Mr Blunkett: To ask the Secretary of State for the Damian Green: There are no central records held on Home Department how many appeals her Department the number of occasions upon which evidence from has made to an information tribunal contesting a police officers or field intelligence officers have been decision notice of the Information Commissioner in disclosed to judges. In order to answer this question, the the last 12 months. [100310] 787W Written Answers21 MARCH 2012 Written Answers 788W

Damian Green: Since 14 March 2011 the Home Office Police: Public Finance has made three appeals to the First-tier Tribunal (Information Rights). Two of these were in respect of Mr Hanson: To ask the Secretary of State for the the same information, which was the subject of two Home Department what estimate she has made of the separate requests. cost to the public purse of the police commissioner roadshows organised by her Department to take place National Policing Improvement Agency: Public between January and March 2012. [94698] Appointments Nick Herbert: The current estimated costs of the Mr Hanson: To ask the Secretary of State for the police and crime commissioner partner events are £85,000. Home Department pursuant to the written statement of 15 December 2011, Official Report, columns Private Investigators 125-6WS, on National Policing Improvement Agency, who she expects to be the Chair and Chief Executive of the proposed new information technology company; Keith Vaz: To ask the Secretary of State for the Home and if she will make a statement. [100859] Department how many police officers have second jobs as private investigators. [100989] Nick Herbert: The chair and chief executive will be appointed by the new owners once they take ownership Nick Herbert: The requested information is not held of the police ICT company. centrally by the Home Office.

Police: Baton Rounds Sexual Offences: Registration

Ian Paisley: To ask the Secretary of State for the Fiona Mactaggart: To ask the Secretary of State for Home Department what guidance her Department the Home Department pursuant to the press notice issues to police forces on the deployment of baton issued by her Department on 5 March 2012, on tightening rounds; and how any such deployment is authorised. the law on sex offenders, when she intends to introduce [100598] the requirement for registered sex offenders to notify the police of all foreign travel. [101009] Nick Herbert: I refer the hon. Member to my answer of 5 December 2011, Official Report, column 66W. James Brokenshire: We currently expect that the Sexual The police no longer use baton rounds. They were Offences Act 2003 (Notification Requirements) (England replaced in June 2005 when the Attenuating Energy and Wales) Regulations 2012 will come into force from Projectile was introduced into service. The Attenuating summer 2012. Energy Projectile is an impact round and performs very differently from baton rounds. Suicide Use of the Attenuating Energy Projectile is regulated by the Home Office Code of Practice on the Police use of Firearms and Less Lethal Weapons (2003). Mrs Moon: To ask the Secretary of State for the The Association of Chief Police Officers Manual of Home Department what guidance is provided to police Guidance on the Management, Command and Deployment officers investigating cases of suicide where the use of of Armed Officers (2011) provides operational context the internet may have been a factor in the suicide; and to the code of practice. Guidance on the use of the if she will make a statement. [99046] Attenuating Energy Projectile in public order situations is also provided by the Association of Chief Police Nick Herbert: It is the duty of the chief constable of Officers Manual of Guidance on Keeping the Peace each force to ensure that there is training and guidance (2010). on the practice that police officers should follow in the event of sudden deaths reportable to the coroner, including Both the code of practice and the Manual of Guidance suicides. on the Management, Command and Deployment of Armed Officers make it clear that deployment and use The subject of suicide is mentioned on several occasions of the Attenuating Energy Projectile is an operational during the initial training for all police officers through matter for the chief constable of the relevant force area various modules of their training about a range of to authorise. issues including: missing persons, coroners’ courts, domestic abuse and sudden death. Police: Private Sector All forces will have local guidance as to how to deal with the investigation and handling of deaths and the Mr Donohoe: To ask the Secretary of State for the bereaved (including suicides). Some forces also have Home Department whether police contracts could be supplementary local guidance or local protocols on let to private sector companies with non-UK parent sudden deaths and engagement by the police with coroners. companies. [100611] No data is available about how many forces have such additional guidance. Damian Green: Police contracts could be let to a The police are currently taking part in a number of private sector company with a non-British parent company, Government-led cross-sector forums which seek to improve provided that the company is able to satisfy the requirements practice in the investigation of sudden deaths and in of the European procurement regulations. improving support to bereaved relatives. 789W Written Answers21 MARCH 2012 Written Answers 790W

Mrs Moon: To ask the Secretary of State for the Work Experience Home Department what guidance is provided to police officers on (a) the investigation of cases of suicide and Chi Onwurah: To ask the Secretary of State for the (b) their contacts with families bereaved by suicide; Home Department pursuant to the answer of 10 May and if she will make a statement. [99044] 2011, Official Report, column 1107W, on departmental work experience, how many people (a) worked as an Nick Herbert: It is the duty of the chief constable of intern, (b) undertook a work experience placement and each force to ensure that there is training and guidance (c) worked as a volunteer in her Department in accordance on the practice that police officers should follow, in the with the hiring criteria set out in that answer in the last event of sudden deaths reportable to the coroner, including 12 months for which data are available; and how many suicides. such people were employed other than according to The subject of suicide is mentioned on several occasions those criteria. [100733] during the initial training for all police officers through various modules of their training about a range of Damian Green: During the 12 months ending February issues including: missing persons, coroners’ courts, domestic 2012, 22 interns have worked in the Home Office and its abuse and sudden death. agencies. Information on how many people undertook All forces will have local guidance as to how to deal work experience placements or worked as a volunteer in with the investigation and handling of deaths and the the Home Office and its agencies is not held centrally bereaved (including suicides). Some forces also have and could be provided only at disproportionate cost. supplementary local guidance or local protocols on sudden deaths and engagement by the police with coroners. No data is available about how many forces have such additional guidance. WOMEN AND EQUALITIES The police are currently taking part in a number of Equality and Human Rights Commission: Scotland Government-led cross-sector forums which seek to improve practice in the investigation of sudden deaths and in improving support to bereaved relatives. Graeme Morrice: To ask the Minister for Women and Equalities what recent discussions her Department has Theft: Agriculture had with the Chair of the Equality and Human Rights Commission on the future of its offices in Edinburgh Huw Irranca-Davies: To ask the Secretary of State and Glasgow. [100196] for the Home Department what the average length of time was for a police 999 response in rural areas in the Mrs May: Ministers and officials have regular discussions latest period for which figures are available. [100448] with the Chair of the Equality and Human Rights Commission (EHRC) on a range of issues. Decisions on Nick Herbert: The requested information is not held the locations of its offices are operational ones, are for centrally by the Home Office. the EHRC to make.

1MC Ministerial Corrections21 MARCH 2012 Ministerial Corrections 2MC

patients (excluding those who were excepted from the Ministerial Correction indicator) who received the checks. This indicates that for DM09, 10.5% and for DM10, 10.6% of patients Wednesday 21 March 2012 (excluding those who were exception reported) did not receive the checks. The exception rate in Leicester City was reported as 5.5% for DM09 and 5.5% for DM10. The differences in results between the audit and QOF HEALTH may be ascribable to variations in scope and data assessment Diabetes: Leicester methodology. We are working with stakeholders to understand the reasons for the differences and to identify Keith Vaz: To ask the Secretary of State for Health what needs to be done as a result. what proportion of diabetes patients in Leicester City The correct answer should have been: Primary Care Trust did not have a foot check in 2011. [99397] Paul Burstow: There are two sources of data for [Official Report, 13 March 2012, Vol. 542, c. 185W.] assessing the extent to which foot checks are provided: the National Diabetes Audit and the Quality and Outcomes Letter of correction from Paul Burstow: Framework (QOF) achievement data. An error has been identified in the written answer given The National Diabetes Audit shows that, from data to the right hon. Member for Leicester East (Keith Vaz) received by 92.3% of practices, 18.3% of diabetics registered on 13 March 2012. The exception rate in Leicester City in Leicester City Primary Care Trust (PCT) did not have was reported as 5.5% for DM09 and 5.5% for DM10. a foot check. The correct figures were 5.2% and 5.2%. The QOF indicators for diabetic foot care in 2009-10 The full answer given was as follows: were as follows: DM09: The percentage of patients with diabetes with a record Paul Burstow: There are two sources of data for of the presence or absence of peripheral pulses in the previous assessing the extent to which foot checks are provided: 15 months; and the National Diabetes Audit and the Quality and Outcomes DM10: The percentage of patients with diabetes with a record Framework (QOF) achievement data. of neuropathy testing in the previous 15 months. The National Diabetes Audit shows that, from data According to Leicester City PCT’s QOF data for received by 92.3% of practices, 18.3% of diabetics registered 2009-10, for DM09 the average underlying achievement in Leicester City Primary Care Trust (PCT) did not for practices in the PCT was 89.5% and for DM10 89%. have a foot check. Underlying achievement means the percentage of eligible The QOF indicators for diabetic foot care in 2009-10 patients (excluding those who were excepted from the were as follows: indicator) who received the checks. This indicates that DM09: The percentage of patients with diabetes with a record for DM09, 10.5% and for DM10, 10.6% of patients of the presence or absence of peripheral pulses in the previous (excluding those who were exception reported) did not 15 months; and receive the checks. The exception rate in Leicester City DM10: The percentage of patients with diabetes with a record was reported as 5.2% for DM09 and 5.2% for DM10. of neuropathy testing in the previous 15 months. The differences in results between the audit and QOF According to Leicester City PCT’s QOF data for may be ascribable to variations in scope and data assessment 2009-10, for DM09 the average underlying achievement methodology. We are working with stakeholders to for practices in the PCT was 89.5% and for DM10 89%. understand the reasons for the differences and to identify Underlying achievement means the percentage of eligible what needs to be done as a result.

ORAL ANSWERS

Wednesday 21 March 2012

Col. No. Col. No. CABINET OFFICE...... 773 CABINET OFFICE—continued Civil Service...... 773 Voluntary Sector Funding...... 778 Government Procurement...... 779 Policy Advice (Outsourcing) ...... 775 PRIME MINISTER ...... 783 Topical Questions ...... 781 Early Intervention...... 789 Voluntary and Community Sector ...... 776 Engagements...... 783 Voluntary and Community Sector ...... 778 Engagements...... 790 WRITTEN MINISTERIAL STATEMENTS

Wednesday 21 March 2012

Col. No. Col. No. COMMUNITIES AND LOCAL GOVERNMENT.. 58WS SCOTLAND...... 61WS Council Tax ...... 58WS Scotland Bill ...... 61WS TREASURY ...... 57WS Anti-Avoidance...... 57WS HEALTH...... 59WS Debt and Reserves Management Report...... 57WS Winterbourne View Hospital ...... 59WS Fuel Tax Policy ...... 57WS PETITIONS

Wednesday 21 March 2012

Col. No. Col. No. JUSTICE...... 9P Graves in Cemeteries in Walsall...... 9P Mentally Incapacitated Persons (Rights of Carers to Financial Information) ...... 10P WRITTEN ANSWERS

Wednesday 21 March 2012

Col. No. Col. No. BUSINESS, INNOVATION AND SKILLS ...... 748W COMMUNITIES AND LOCAL GOVERNMENT.. 697W Assisted Areas: Northern Ireland...... 748W Areas of Outstanding Natural Beauty: Planning Construction...... 749W Permission ...... 697W Digital Technology...... 749W Building Regulations...... 698W English Language: Qualifications...... 750W Landlords ...... 698W Exports: Angola...... 750W Local Government: Newspaper Press...... 698W Exports: Niger ...... 750W Localism Act 2011 ...... 699W Foreign Investment in UK ...... 750W NewBuy Guarantee Scheme...... 699W ICT ...... 751W Parish Councils: Bureaucracy ...... 699W Inward Investment: West Midlands...... 752W Shared Room Rate: Lancashire...... 700W Learning and Skills Improvement Service ...... 753W Wind Power: Shropshire...... 700W Overseas Trade: Africa...... 753W Work Experience...... 701W Overseas Trade: Algeria ...... 753W Regulation ...... 754W CULTURE, MEDIA AND SPORT ...... 693W Tobacco: Packaging ...... 754W Betting: Dormant Accounts...... 693W UK Trade and Investment: Libya...... 755W Broadband ...... 693W Digital Technology...... 694W Libraries ...... 694W Mass Media ...... 694W CABINET OFFICE...... 778W Open Source Software...... 778W DEFENCE...... 723W Population: Unitary Councils ...... 779W Armed Forces: Housing ...... 723W Public Sector Procurement...... 778W Armed Forces: Life Insurance...... 724W Unemployment ...... 779W Armed Forces: Married People ...... 724W Voluntary and Community Sector ...... 778W Armed Forces: Post-traumatic Stress Disorder...... 724W Voluntary Work ...... 780W Freedom of Information ...... 725W Col. No. Col. No. DEFENCE—continued HOME DEPARTMENT...... 784W Katrice Lee ...... 725W Alcoholic Drinks: Pricing...... 784W Mass Media ...... 725W British Overseas Citizenship: Malaysia ...... 785W Navy: Reserve Forces ...... 725W Cybercrime ...... 785W Reserve Forces: South East ...... 726W Deportation: Offenders...... 785W Veterans: Staffordshire ...... 726W Immigration Controls ...... 786W War Pensions ...... 726W Independent Police Complaints Commission...... 786W Work Experience...... 726W Information Commissioner...... 786W National Policing Improvement Agency: Public EDUCATION...... 765W Appointments ...... 787W Adoption: Kent ...... 765W Police: Baton Rounds...... 787W Mass Media ...... 767W Police: Private Sector...... 787W Pupils: Peterborough...... 768W Police: Public Finance ...... 788W Schools: Asbestos...... 773W Private Investigators...... 788W Schools: Fire Sprinklers ...... 774W Sexual Offences: Registration...... 788W Special Educational Needs: Complaints...... 774W Suicide ...... 788W Theft: Agriculture ...... 789W ENERGY AND CLIMATE CHANGE ...... 758W Work Experience...... 790W British Overseas Territories...... 758W Energy: Billing ...... 758W HOUSE OF COMMONS COMMISSION ...... 693W Energy: Carbon Emissions...... 759W Food: Waste...... 693W Energy: Prices ...... 760W Environment Protection...... 760W INTERNATIONAL DEVELOPMENT...... 756W Environment Protection: Taxation ...... 761W Bangladesh...... 756W Green Deal Scheme...... 761W Bangladesh: Overseas Aid...... 756W Mass Media ...... 762W British Overseas Territories...... 756W Nuclear Power...... 762W Information Commissioner...... 756W Renewable Energy...... 762W Lost Property...... 757W Wind Power: Health Hazards...... 764W Procurement...... 757W Wind Power: Seas and Oceans ...... 764W Rwanda...... 757W Work Experience...... 758W ENVIRONMENT, FOOD AND RURAL AFFAIRS...... 741W JUSTICE...... 780W Biodiversity: Havering...... 741W Claims Management Services...... 780W BSE: USA...... 741W Driving Offences: Mobile Phones...... 781W Dangerous Dogs ...... 742W Employment Tribunals Service...... 781W Farmers...... 743W Presumption of Death (Scotland) Act 1997 ...... 783W Food Supply...... 743W Prisons: Drugs ...... 783W Horses: Passports...... 743W Translation Services ...... 783W Natural England: Operating Costs...... 743W Poultry: EU Law...... 744W NORTHERN IRELAND ...... 695W Regulation ...... 744W Lost Property...... 695W Regulations ...... 747W Mass Media ...... 695W Parades Commission...... 695W FOREIGN AND COMMONWEALTH OFFICE..... 719W Terrorism ...... 695W Afghanistan ...... 719W Welfare Reform Act 2012...... 696W Belarus...... 719W Work Experience...... 696W Democratic Republic of Congo ...... 719W Iceland ...... 719W TRANSPORT ...... 727W Information Commissioner...... 720W Bus Services: Birmingham...... 727W Libya...... 720W Bus Services: Concessions ...... 728W Mass Media ...... 721W Driving Under Influence...... 728W Middle East ...... 721W High Speed 2 Railway Line ...... 729W Palestinians ...... 722W McKinsey and Company ...... 729W Tunisia ...... 722W Moor Vehicles: Imports ...... 729W Procurement...... 729W HEALTH...... 731W Railways: Electrification ...... 730W Diabetes: Health Services...... 731W Railways: North West ...... 730W Drugs: Prisons ...... 731W Road Works: Fees and Charges...... 730W General Practitioners: Training...... 732W Lost Property...... 732W TREASURY ...... 775W Lung Cancer: Health Services ...... 734W Air Passenger Duty: Northern Ireland...... 775W Mass Media ...... 735W Gift Aid ...... 775W MMR Vaccine ...... 736W ICT ...... 775W NHS: Drugs...... 736W Income Tax: Tax Rates and Bands ...... 776W NHS: Standards...... 737W Inheritance Tax...... 777W Nutrition: Children...... 738W VAT: Third Sector...... 777W Pancreatic Cancer: Health Services ...... 738W Tuberculosis...... 739W WALES...... 697W Vaccination: Schools ...... 740W Mass Media ...... 697W Work Experience...... 740W Work Experience...... 697W Col. No. Col. No. WOMEN AND EQUALITIES...... 790W WORK AND PENSIONS—continued Equality and Human Rights Commission: Health and Safety Executive: Redundancy...... 709W Scotland...... 790W Income...... 709W Information Commissioner...... 709W WORK AND PENSIONS ...... 702W Invalid Vehicles ...... 710W Access to Work Programme ...... 702W Jobseeker’s Allowance...... 710W Atos Healthcare ...... 705W Lost Property...... 710W Attendance Allowance ...... 706W New Enterprise Allowance: Birmingham ...... 710W Employment and Support Allowance ...... 707W Personal Independence Payment...... 711W Employment and Support Allowance: Remploy...... 712W Birmingham...... 707W Remploy: Redundancy...... 712W Employment Schemes ...... 707W Remploy: Wales ...... 713W Employment Schemes: Bicycles...... 708W Social Security Benefits...... 713W Employment Schemes: Young People...... 709W Unemployment: Poverty ...... 716W MINISTERIAL CORRECTION

Wednesday 21 March 2012

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

not later than Wednesday 28 March 2012

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CONTENTS

Wednesday 21 March 2012

Oral Answers to Questions [Col. 773] [see index inside back page] Minister for the Cabinet Office Prime Minister

Budget Resolutions and Economic Situation [Col. 809] Debate (First day) Debate adjourned

Pharmaceutical Industry [Col. 897] Debate on motion for Adjournment

Westminster Hall Thamesteel [Col. 193WH] Water and Sanitation [Col. 218WH] Safety of Journalists Abroad [Col. 226WH] Litigation Friends [Col. 244WH] Mobility Scooter Safety [Col. 254WH] Debates on motion for Adjournment

Written Ministerial Statements [Col. 57WS]

Petitions [Col. 9P] Observations

Written Answers to Questions [Col. 693W] [see index inside back page]

Ministerial Correction [Col. 1MC]