18/11/2015 House of Commons


18/11/2015

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Order. Urgent question, Sir Gerald power. -- Howarth. Further to the

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question asked by my honour`ble friend, may I ask the Secretary of

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State for Northern Ireland, if she will make a statement about the

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arrest of a former member of the parachute regiment on duty hn

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Londonderry in January 1972? Mr Speaker, I thank the honour`ble

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member for his question. As part of the ongoing investigation bx the

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PSNI into the events surrounding Bloody Sunday in Londonderrx in

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1972, a former soldier was `rrested for questioning on the 10th of

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November. Only he were subsdquently released on bail. Criminal Court

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investigations are a messagd -- matter for police to act

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independently of government, so the government cannot comment on an

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individual case. We remain unstinting in our admiration and

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support for the men and womdn of the police and armed forces who have

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sacrificed to ensure that tdrrorism would never succeed in Northern

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Ireland, and its future would only ever be determined by democracy and

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consent. Whether the current investigations will lead to criminal

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prosecutions is a matter for the police and prosecuting authorities

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in Northern Ireland. As the Prime Minister pointed out during his

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statement on Lord Savill's report, the 250,000 people serving hn

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Northern Ireland during the operation, and one in which I was

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proud to play a part, the overwhelming majority carridd out

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their duties with courage, professionalism and in integrity.

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Thank you for allowing me to pose this question and I pay tribute to

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my honourable friend for his service in Northern Ireland. When in 20 0

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the Prime Minister made his memorable statement in the House

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following the publication of the sample report following the events

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of 1972, known elsewhere as Bloody Sunday, I and others hoped ` line

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would be drawn under this tragedy. We now find that 43 years after this

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event and three years after the first investigations, a soldier from

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the parachute regiment who was in his early 20s and is now in his late

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60s, is faced with a possible prosecution for murder with the

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possibility of further arrests. There are two reasons this hs wrong.

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What national interest is sdrved I bring in these cases to court? The

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saddle enquiries about that there was no premeditation of murder. One

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witness said that Martin McGuinness was on the other side of thd body

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armed with a machine gun. These soldiers were not hired killers

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they were seeking to do thehr duty to their country in a filthx Civil

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War where the enemy was dressed in civilian clothes in distingtishing

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from the local population. @s the Secretary State said last ydar, the

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royal prerogative of Mercy was granted in Northern Ireland 365

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times between 1979 and 2002. The sample report cost ?195 million and

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took 12 years to compile but our service men based in Aldershot, and

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some of them remain my constituents, had to make that decision is of the

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-- snap decisions, the consdquences of which have hung over thel their

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entire lives. What happened that day was a tragedy, particularly those

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who lost their lives. But they are not the only victims, what `bout the

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families of the 1441 soldiers who died in Northern Ireland in service

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of their country? There was no enquiry into their deaths, no saddle

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enquiries into the murder of -- no enquiry into the murder of `ny

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civilians. I submit that it is immoral for the state to sedk nearly

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half a century after the evdnt, that these men on trial, what ard those

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who deployed there are bombs and bullets in the shadows are now in

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government or received Royal pardons, an act of government, not

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friend to exercise the royal friend to exercise the royal

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prerogative of Mercy with ilmediate effect. Thank you, Mr Speakdr. I

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hear what the honourable melber says, he has been a doughty and

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outspoken champion of not only the Parachute Regiment and his

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constituents but also of Brhtain's Armed Forces. This is not e`sy for

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me either, I know what it is like to make those decisions under pressure.

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We should not forget that the British Army is not above the law

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and nor should it be. It is the difference between us and the

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terrorist. And it is what m`kes us a professional army around thd world,

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from some of those more tinpot armed from some of those more tinpot armed

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forces elsewhere in the world. The House will have heard what he said

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about the use of the royal probative of Mercy. What I would say to that

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is, I cannot comment on these individual cases, these are a matter

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for ongoing police enquiry. It is a long way from following a lhne of

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enquiry to conviction, charging and caught. I am sure the House will

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reflect on the Right Honour`ble member's call but I am definite that

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we cannot comment on this c`se and the police must be allowed to do

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their job and uphold the rule of law, the rule of law that I went as

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a soldier to uphold in my thme in Northern Ireland. I think it is only

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right and proper at this tile to pay tribute to our Armed Forces who are

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at this very moment engaged in defending our freedoms or in harms

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way. They operate to a high standard and should always remember the

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difficult circumstances in which they serve. Does the Ministdr agree

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with me that it is always dhfficult to criticise our Armed Forcds if

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they fall below these high standards but we cannot and must not fail to

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do so is evidence of wrongdoing exist? I quote the prime minister,

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there is no doubt there is nothing equivocal, there are no ambhguity.

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What happened on Bloody Sunday was What happened on Bloody Sunday was

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both unjustified and unjusthfiable and it was wrong. And he apologised

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on behalf of the British government. The whole report made

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very uncomfortable reading for all of us. We must never forget the

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victims and families for those who were killed both on Bloody Sunday

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and throughout Northern Ireland and on so many other occasions. Can the

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Minister confirm, so we are all clear, that the evidence given at

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the saddle enquiry was precluded from being used in any court

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proceedings in any individu`l? Can he confirmed the arrest was based on

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evidence gathered since Jantary 2014, by the PSNI, when thex

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announced the investigation? The PSNI has said there will be no

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further arrests until the rdsult of a judicial review brought bx other

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soldiers is concluded. Can he tell us when that will be concluded, and

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what work they have undertaken to do under that review? There was an

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input and announcement yestdrday about Stormont which came after many

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weeks of negotiation, but they were not able to agree on legacy steps.

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Will he outlined what steps he continues to take to pursue such

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agreement? Does the case th`t we are discussing today, once again

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emphasised the need for a comprehensive process to de`l with

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these issues, and outstanding cases, however difficult? The whole

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house will agree that the independence of the police `nd the

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independence of the judiciary is central to any democracy. Btt a

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process has to be sought and agreed, however difficult. Northern

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Ireland is coming out of conflict. Huge progress has been made. The

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Northern Ireland today is htgely different from that of yestdrday.

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All of us who have visited on a regular basis has seen that for

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ourselves. We have seen a ddsire to build for the future and thd hope

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that everyone has for the ndw generation. So when the minhsters

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answer these questions, will they also agree that the continuhng and

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emerging issues from the past has to be dealt with as they cannot be

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denied? Let us also not forget how far we have come. All partids, all

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communities, the people of Northern Ireland, deserve huge credit for

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that. Thank you, Mr Speaker. 1st of all,

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on the issue of testimony, `n important point that we recognise

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that during the enquiry it was established that anyone givhng

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evidence to that enquiry, their testimony could not be used as a

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basis for conviction or indded to incriminate themselves. It was done

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in a way so that we could fhnd out as much as possible by what happened

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on that fateful day and therefore that is the principle that still

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stands and the protection of their evidence as such is still an issue.

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It does not exclude other evidence that is gathered later. I c`nnot

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comment on the police investigation. It would be wrong for me to

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interfere or indeed enquire too deeply into it as they must be left

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to follow whatever course their investigation takes 2. On the issue

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legacy, might admiration for my honourable friend the Secretary of

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State for the Northern Irel`nd parties and the Irish Government who

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had over 150 meetings over 35 roundtable meetings in the last 9

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1/2 weeks, they resolved thd current impasse in Northern Ireland. They

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have decided the best futurd is to move forward and not backwards. It

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is regretful that legacy has been left out of the final agreelent in

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so legislation however the `greement I signed yesterday does continue to

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-- the agreement signed yesterday continues to commit the party to

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dealing with the legacy. Thd victims of the Northern Ireland trotbles

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will demand that. We have committed to still provide the funding for

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that legacy enquiry to take place and I hope sooner rather th`n later

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we get to a point where the policy we are examining can be enacted so

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that we, in the end, can achieve justice for victims but also closure

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from the troubles. Laurence Robertson. Thank you. The Mhnister

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and the Prime Minister were right to draw the house's attention to the

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separation powers which exist, but in order for people in Northern

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Ireland and indeed throughott the United Kingdom to keep their faith

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in the peace process, isn't it important that whoever is stspected

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of committing any crimes ard fully investigated regardless of what

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rules they may be playing in Government now? I totally agree with

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my honourable friend. It is why not so long ago at this dispatch box

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when a prominent member of Sinn Fein was arrested and indeed members of

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the provisional IRA were arrested, I said quite clearly that we support

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the PSNI in pursuing the evhdence that is presented to them to bring

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them to justice whether thex are senior members of a politic`l party

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or indeed members of a terrorist organisation, but that is not to do

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the same thing as to equate individuals who work for thd British

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Armed Forces doing their job to affect people who could not -- to

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defend people who could not defend themselves. We endorse what the

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Right Honourable member for Aldershot has said. Is it not the

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case that we still have people in Northern are prepared to go out and

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murder former members of thd security forces, and is it really

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appropriate when a man offers to go into a police station for interview

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that 3 police cars arrived `t his home to arrest him in full public

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view, given his background? Surely, if we're going to do this, there

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needs to be a more sensitivd way of doing it. We should not be placing

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former and women who serve this country well and their families at

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risk simply it would appear to appease some other party. The

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gentleman is right to express concern. The manner in which anyone

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is arrested and I can't comlent on this individual case, and if he has

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issues with how and what manner that person was arrested, then I suggest

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you take that up with the Chief Constable. I entirely endorse the

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comments of the Minister and the shadow secretary. The current

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circumstances in Northern Ireland could never have come about without

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the extraordinary bravery and discipline of all those in security

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forces who have allowed the peace process to take root. Picking up the

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question from the shadow secretary, the Savile report, the most

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extraordinary combination of detail, will the Minister confirm that all

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the evidence given by soldidrs who were questioned is absolutely

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untouchable and cannot be used on legal grounds to incriminatd them

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and also that they are non-lilitary -- there are non- amenity is legally

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protected. It is absolutely the case that the testimony used as given by

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a former soldier cannot be tsed against that former soldier in any

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future case. He is protected from incriminating him or herself, who

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remember him -- who ever give that evidence. Mark Durkan. Thank you, Mr

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Speaker. As the MP for the constituency in which the events of

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bloody Sunday took place, I know I have to take care not to go so far

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in rebutting some of the issues that were raised by the Honourable member

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as to add to any impression of political pressure or polithcal

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motive behind the current investigation or indeed any arrest.

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Will the Minister confirm that of the things that all the parties have

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agreed in all of the discussions is that amnesty is no basis for dealing

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with the past and therefore the house should avoid getting hnvolved

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when there are particular investigations or particular arrests

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and in respect to his last `nswer, will he qualify it by saying that

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protection does not extend to the question of perjury, that Lord

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Savile did warn several witnesses and that the occupation authorities

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had taken a position that s`id they would only pursue the issue of

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perjury which would be pursted in this jurisdiction because that is

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where any possible perjury took place after the substantive course

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in relation to what they call the substantive crime of possible murder

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was dealt with, so people are looking to say that the

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investigations in addition to possible murder should somehow be

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part of the ban, will he be consulting with colleagues to see

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whether or not the issues around perjury should be reconsidered by

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the prosecuting authorities? The Honourable member is right that the

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protection does not extend to the area of perjury, of witnessds

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obviously giving testimony `t a public enquiry, and that wotld be

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the same for any witness on that date in. On the area of amndsty I

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can confirm doing that to rdad the whole legs lead -- legacy

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discussions, amnesty was never part of that process, and that w`s not

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something that either Government or parties wanted to commit to. Can I

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pay tribute to George Hamilton and the PSNI. They are bound to follow

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the evidence and we should support them in so doing, but would my

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honourable friend accept th`t in following the evidence they are

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likely to follow the actions of members of the Armed Forces 1st and

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foremost, since PYRA were not in the habit of laying down Britain

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evidence, so the branch is bound to give the impression that thhs serves

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the historical revisionist `genda of Sinn Fein and comment on whdther

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that is likely to be helpful or unhelpful to the peace procdss. My

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honourable friend knows all too well, having been stood herd

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previously doing this job, that what serves the peace process is the

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reckoning of the past, the closure for victims, but also justice for

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victims and the pursuit of former terrorists, if they have not been

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convicted, or the pursuit of anyone else, that is what serves pdace and

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recognising the huge sacrifhces made by members of the security forces

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and the civilian population of Northern Ireland is what actually

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brought us to the negotiating table. It is what actually defeated the

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terrorists, and that is why we need to make sure that when we move

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forward, we do so in a spirht that is measured, recognises word justice

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needs to be done, but also not to indulge people that would lhke to

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revise the past as if it was some big conspiracy against people. Lady

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Hermon. Thank you, Mr Speakdr. We hear from the Prime Minister often

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about the importance of havhng enshrined military covenant in law

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in this country, and he is puite right to boast of that becatse it is

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a wonderful thing to have done, but in that context, with the Mhnister

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guarantee that the Ministry of Defence will pay for all legal

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costs, that is the legal advice and the legal representation, top legal

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representation, of any formdr soldiers who served in Northern

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Ireland and who are charged in connection with any enquiry or

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inquest such as those announced for Bally Murphy. I thank the honourable

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lady for that question. The MoD recognises that we have a dtty of

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care to all current and forler members of the Armed Forces. As an

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essential part of that, we will pay for independent legal advicd so that

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they are able to defend thelselves when they face legal proceedings or

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matters related to the formdr service. Doctor Liam Fox. I agree

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with what my honourable fridnd says about the need to uphold thd law. I

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understand why any decisions about the prosecution must be inddpendent

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and why he cannot comment on this particular case, but without

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prejudging in any way any p`rticular case, does he understand th`t we

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also have the need to uphold justice and that it will be defending a

:20:10.:20:15.

natural sense of justice of many people in this country that the

:20:16.:20:18.

behaviour of how the army bdhaved on a certain date 40 years ago is being

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reopened when so many on thd IRA side were killed and have bden

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granted amnesty? Does he agree with me that if we are to draw a line

:20:30.:20:32.

under past events for the s`ke of peace, it should be drawn on both

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sides? My honourable friend makes an important point. I would like to

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correct him that paramilitaries and terrorists who have not been

:20:43.:20:45.

convicted and were not part of the Good Friday agreement have not been

:20:46.:20:49.

granted any amnesty. They are still subject to the full force of the

:20:50.:20:54.

law. There are individuals no doubt who are still being looked for and

:20:55.:20:59.

cases being prepared, so in that case I am afraid there is no blanket

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amnesty, but he is right th`t what we should not do is let indhvidual

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cases colour the very strong and successful work that are Arled

:21:08.:21:13.

Forces did. We went to Northern Ireland, Mr Speaker, to protect

:21:14.:21:16.

those people who could not defend themselves. That is a record that we

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should be proud of, but that record can be besmirched, and it is the

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same and always has been since the war or any other time that lembers

:21:24.:21:26.

of the Armed Forces can think they are above the law and it is what

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makes the difference -- makds us different from the terrorists. Isn't

:21:34.:21:40.

it the case that former terrorists have been granted immunity from

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prosecution and doesn't the Minister agree that no fair-minded pdrson

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will understand why that sale right is not extended to British soldiers?

:21:49.:21:55.

I think I have to correct the Honourable member. It is not my

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understanding that anyone h`s been granted amnesty from prosecttion. I

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think we shouldn't confuse some of the recent events with that meaning

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of blanket amnesty, so no 1 is available to call on amnestx to

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protect them from facing up to what they did, but he is right. H faced

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nearly every week people who killed my soldiers sitting oppositd me but

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I can do that because I think it is about the future and it is `bout

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making peace to move forward for Northern Ireland. Cheryl Gillan My

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constituency -- my constitudnt has written to me expressing dismay

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about the arrest of the 66 ,year-old ex- soldier in my area. He writes,

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you should be aware that thdre is a large and rapidly growing

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undercurrent of anger and rdsentment of these actions within the current

:22:45.:22:47.

military and more importantly amongst those many tens of thousands

:22:48.:22:52.

of veterans who, like me, spent long months and years being stondd,

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bonds, fired upon, enter, intimidated and vilified. I

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understand the parameters whthin which the Minister is operating but

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could you ensure that an explanation is brought forward rapidly `nd

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matters are brought to a swhft conclusion to allay the angdr that

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is reflected in this correspondence? I am tempted to say to my honourable

:23:16.:23:19.

friend that I might have dr`fted part of that letter. I was told

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vilified and abused for manx, many years on those tours. The anger is

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real. I feel the anger of m`ny of my former colleagues of her

:23:31.:23:33.

constituents about making stre that this is not used in some political

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campaign and we are determined in the Government to make sure that it

:23:39.:23:42.

is about the rule of law and the police have together the evhdence if

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there is any evidence and it has to follow its course. It is a long way

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from that. We are in a position where I cannot comment on the

:23:50.:23:52.

current case, but we are currently topping that people being

:23:53.:23:56.

questioned, under caution, `nd obviously arrested, but there is a

:23:57.:24:00.

long way to go to make that jump to this is some form of campaign

:24:01.:24:03.

against the British Army, btt I will say that we listen to what xou say,

:24:04.:24:09.

the Government knows it is `bout moving forward and thereford we

:24:10.:24:12.

shall do everything in our power to make sure we recognise and support

:24:13.:24:18.

what the MoD are doing currdntly with our soldiers to face

:24:19.:24:20.

prosecution or investigation to make sure they're giving the presentation

:24:21.:24:27.

that they deserve. I am verx grateful for the urgent question

:24:28.:24:30.

today and of course we recognise and support the rule of law and the

:24:31.:24:33.

independence of the judiciary, but that is a real anger -- there is a

:24:34.:24:39.

real anger amongst veterans and will the Minister take steps to dnsure

:24:40.:24:42.

that the current inequality that allows for those in the armdd

:24:43.:24:45.

services to be pursued with greater vigour, effort, than the terrorist

:24:46.:24:51.

themselves, ends and will bd moved toward some level playing fheld in

:24:52.:24:53.

future? I do not agree that there is an

:24:54.:25:01.

inequality in the process. H do not believe that the police and the

:25:02.:25:04.

Chief Constable are pursuing people with more birth than another group

:25:05.:25:09.

of people. I think they will go where the evidence takes thdm and

:25:10.:25:13.

they will follow them. The honourable members might like to

:25:14.:25:16.

think, this is a process th`t will hopefully help many soldiers and

:25:17.:25:21.

former RUC members clear thdir name. To have a process to clear xour name

:25:22.:25:26.

is as important as not having a process which could lead people to

:25:27.:25:33.

make full against them. --. Allegations against them. C`n I pick

:25:34.:25:40.

up on his point that no one is above the law? I would entirely concur on

:25:41.:25:44.

that. The perception is in this chamber amongst many members and

:25:45.:25:47.

people in the country that our British soldiers are hunted, while

:25:48.:25:56.

those who murder and kill and become politicians and still are, `nd I

:25:57.:26:00.

personally faced them, are `llowed to work free. Can I also get him to

:26:01.:26:04.

confirm that the identity of a soldier, and anyone else, bdcause I

:26:05.:26:10.

believe it is before 1973, their identities will be kept secret? We

:26:11.:26:18.

must all challenge the percdption that they are hounded. As I said

:26:19.:26:24.

earlier, there were 250,000 people that served in those 25 years. No

:26:25.:26:31.

one is hounding them. Peopld are following a course, the polhce must

:26:32.:26:35.

be allowed to follow a course of enquiry. In order to help ehther

:26:36.:26:39.

clear names or achieve justhce where there has been a breach in the law.

:26:40.:26:45.

I think that is very import`nt. We have to make the difference, that we

:26:46.:26:48.

are the people that follow the rule of law. It is the terrorist to does

:26:49.:26:54.

not. In answer to his second question, as I said to his right

:26:55.:26:58.

honourable friend, I shall write to him about that detail in thd future.

:26:59.:27:05.

Five years ago at the dispatch box, the Prime Minister took to his feet

:27:06.:27:10.

to try and bring closure to the ?200 million report across the House and

:27:11.:27:18.

in many sections of society people expressed the view that that was the

:27:19.:27:21.

matter at an end. I made at addiction from this base at that

:27:22.:27:25.

time that that would not be the end of the matter. -- I made a

:27:26.:27:31.

prediction from this place. Will he accept that he needs to meet with

:27:32.:27:34.

the Chief Constable of the police in Northern Ireland to ensure that

:27:35.:27:38.

irrespective of whether people were in uniform or out of uniforl, if

:27:39.:27:44.

they had machine guns or probably had submachine machine guns like

:27:45.:27:49.

Martin McGuinness, they shotld be subject to the law, and questioned

:27:50.:27:52.

equally, in order to be brotght before the court? The chief

:27:53.:27:58.

constable is adamant that in all criminal enquiries he will treat

:27:59.:28:02.

people the same. He will investigate and he will follow the course of

:28:03.:28:06.

action. It is not that long ago that we were hearing cries about Sinn

:28:07.:28:10.

Fein politicians being arrested and taken into questioning. I h`ve

:28:11.:28:17.

confidence that the chief constable who is a respected individu`ls from

:28:18.:28:22.

all sides of the House will follow his professional training and treat

:28:23.:28:27.

everyone fairly in that process I cannot get involved in

:28:28.:28:31.

investigation, I cannot see the chief constable to interferd,

:28:32.:28:35.

because if I was and the result was saying that there was no evhdence in

:28:36.:28:39.

a particular case, I would never get away with it, people would `ccuse me

:28:40.:28:43.

of interfering and someone would be prevented from clearing thehr name.

:28:44.:28:49.

I took out a patrol in the street of Belfast a few moments after we

:28:50.:28:53.

discovered that our Battalion band had been blown up in Regents Park,

:28:54.:28:57.

entertaining Londoners. And I will never forget the restraint showed by

:28:58.:29:03.

Rifleman and other ranks under my command facing the taunts of IRA and

:29:04.:29:08.

then their supporters on th`t occasion. That was just one example

:29:09.:29:14.

of thousands of similar occ`sions where the Armed Forces showdd

:29:15.:29:17.

unbelievable restraint in the face of a unbelievable provocation. I

:29:18.:29:22.

think what my colleagues at that time and many veterans might feel is

:29:23.:29:32.

that they want to say, what about Regents Park, Warren Park, Londay,

:29:33.:29:36.

Tuesday, Wednesday, when thdse were happening? The Minister is right,

:29:37.:29:41.

this has to be dealt with properly. But society wants a line dr`wn under

:29:42.:29:47.

this now. I hear my honourable friend and what he says and I do not

:29:48.:29:51.

disagree. Like him, I have had personal express of that restraint.

:29:52.:29:56.

We should not forget the trdmendous pressure soldiers and policd were

:29:57.:30:00.

put under every day, the provocation. I remember soldiers

:30:01.:30:04.

being attacked and people p`rking their cars in front of ambulances so

:30:05.:30:07.

they could not come to the rescue of our shoulders. -- soldiers. Inhumane

:30:08.:30:15.

treatment, murder and the mhgration by part of a society that wd were

:30:16.:30:19.

there to try and protect. Lhke him, I have real passion for what our

:30:20.:30:23.

soldiers achieved, and the TK Government recognises that `nd

:30:24.:30:27.

support that. But also like him he will recognise that those soldiers

:30:28.:30:31.

that showed restraint are the ones that make us the best army hn the

:30:32.:30:36.

world. It is their professionalism, it is the fact that they managed to

:30:37.:30:40.

carry on and try and achievd a better result for the peopld of

:30:41.:30:43.

Northern Ireland and the people they were there to protect. It is that

:30:44.:30:46.

restraint that means that those people who have a chance to clear

:30:47.:30:49.

their name should be allowed to clear their name, and it is those

:30:50.:30:53.

soldiers who followed the rtle of law who are only ever let down by

:30:54.:30:57.

those very few soldiers who break the law. Can I also concur with the

:30:58.:31:05.

comments made by the Right Honourable member for Aldershot I

:31:06.:31:12.

agree with him wholeheartedly. The diligence and zeal shown by the

:31:13.:31:15.

authorities to question the detained Regiment soldier is causing us

:31:16.:31:21.

concerned when that is comp`red to the people who have committdd

:31:22.:31:28.

horrible crimes and are fred today, and in some places, in high

:31:29.:31:35.

positions in the Parliament. Does the Minister feel this is a double

:31:36.:31:44.

standard? . I was on the backbenches during the whole on the run process.

:31:45.:31:50.

I cannot comment much furthdr other to say that it is my understanding

:31:51.:31:57.

that the underruns are not subject to any amnesty, they are not free

:31:58.:32:03.

from prosecution, and I hopd the prosecuting authorities herd what we

:32:04.:32:05.

say today and will make surd that they continue where they can

:32:06.:32:08.

prosecutions of any of thosd individuals that have committed

:32:09.:32:11.

crimes against our Armed Forces and the people of Northern Irel`nd.

:32:12.:32:18.

Further to his point and like my honourable friend, I have bden

:32:19.:32:23.

contacted by constituents bx deep concerns for the appearance of

:32:24.:32:26.

double standards with amnesty for terrorists. We heard from the chief

:32:27.:32:32.

constable of the PSNI that his officers are still going about their

:32:33.:32:36.

business with dissident reptblicans are still aiming to kill thdm or

:32:37.:32:40.

they work to protect the colmunique, can he assure us that there is no

:32:41.:32:44.

question of any amnesty for those who attack and maim our Armdd

:32:45.:32:48.

Forces? I can assure him thdre is no amnesty. In the latest agredment in

:32:49.:32:54.

Northern Ireland yesterday, there is ?150 million more money to fund our

:32:55.:33:02.

police forces and security services in Northern Ireland to purste people

:33:03.:33:05.

who commit crimes either currently or in the past against the hnnocent

:33:06.:33:10.

people of Northern Ireland. Not only that, there was an agreement made

:33:11.:33:20.

yesterday including measures to monitor paramilitary activity, so we

:33:21.:33:25.

are determined not only to do with the past but to invest and give our

:33:26.:33:29.

police the support to make sure we bring to justice those terrorists

:33:30.:33:32.

who have either been on the run those who have not been brotght to

:33:33.:33:36.

justice and also to get those dissident republicans who are out

:33:37.:33:40.

there right now targeting us, my colleagues, police officers going

:33:41.:33:42.

about their business in Northern Ireland every day. The Minister did

:33:43.:33:51.

indicate that he did not fedl there was an inequality. How does he

:33:52.:33:56.

explain that there are over 20 least service of Northern Ireland Office

:33:57.:34:00.

is investigating those soldhers of Bloody Sunday, and not one police

:34:01.:34:05.

officer investigating the 10 murders on remembrance service Sund`y in

:34:06.:34:14.

1987 in Enniskillen? I do not know the inner workings of how the chief

:34:15.:34:18.

constable and his senior officers decide to investigate each

:34:19.:34:21.

individual case and nor shotld I. Suffice to say, the chief constable

:34:22.:34:27.

is determined in my underst`nding to bring to justice any individual who

:34:28.:34:34.

has broken the law in the p`st, and there are plenty of former terrorist

:34:35.:34:38.

or current terrorists who nded to be brought to justice and most of the

:34:39.:34:43.

time that I see in front of me, PSNI officers are everyday out there

:34:44.:34:46.

trying to catch the terrorists and it is not in my view all focused on

:34:47.:34:56.

former soldiers. We have always been opposed to terrorism and two on the

:34:57.:35:04.

runs, and it was my honourable colleagues the member for Foyle who

:35:05.:35:07.

steadfastly opposed that in this very house semi go. We also believed

:35:08.:35:15.

in accountability and sensitivity for all victims, irrespective of

:35:16.:35:18.

where they came from. But could I ask the Minister to ensure `nd to

:35:19.:35:27.

redouble efforts that the whole issue to do with the legacy of the

:35:28.:35:31.

past is fully pursued and that we obtain a final resolution that takes

:35:32.:35:39.

on-board national security considerations, so that the truth is

:35:40.:35:46.

made available for all? The honourable member is right, and the

:35:47.:35:51.

SDLP has a fine and long tr`ck record of pursuing not only justice

:35:52.:35:58.

but also democratic methods to pursue their political agendas. And

:35:59.:36:00.

I think we should not forget that through the troubles that in the

:36:01.:36:06.

heart of it the SDLP took qtite a lot of intimidation throughout the

:36:07.:36:15.

process. I regret that the legacy did not make it through the

:36:16.:36:17.

agreement. I am determined to make sure that we deal with thosd issues

:36:18.:36:21.

in the past, that is why thdre is still funding available to deal with

:36:22.:36:25.

it, and I will be pressing next week, the Northern Ireland parties,

:36:26.:36:29.

to see what we are going to do to move on from agreement and lake sure

:36:30.:36:33.

we move forward on the legacy issue to make sure that not only families

:36:34.:36:37.

get more information and closure, but justice is also served. Can I

:36:38.:36:44.

congratulate the Minister for his professional response? It mtst be

:36:45.:36:52.

very hard with him in his background. I think it's response is

:36:53.:36:56.

exactly what we expect from our service people and we do expect more

:36:57.:36:59.

from them. That is why it is right and proper that if the rules are

:37:00.:37:05.

being followed, that the people concerned get the chance to clear

:37:06.:37:09.

their name if possible. At the end of the day, there were 13 pdople on

:37:10.:37:14.

the streets of Derry who were dead 43 years ago. If people did not act

:37:15.:37:20.

properly, it is right and proper that they are taught to book. I

:37:21.:37:25.

would reiterate that it is what sets us apart, the rule of law, soldiers

:37:26.:37:30.

that show restraint and professionalism, it is how the

:37:31.:37:32.

public and the community support you. And if you are trying to deal

:37:33.:37:38.

with a terrorist threat and counterterrorism, you need the

:37:39.:37:41.

population on your side. I know more than anyone that when popul`tions

:37:42.:37:46.

felt that you were above thd law or did not treat them as if thdy were

:37:47.:37:50.

part of society, then actually it made the soldier's job more harder

:37:51.:37:57.

and more dangerous because no one helped us all gay misinform`tion and

:37:58.:38:03.

our lives were put at risk. -- no one helped us or gave us

:38:04.:38:12.

misinformation. Was the honourable gentleman here at the start? How

:38:13.:38:21.

could I doubt it for one molent Like other honourable members in

:38:22.:38:26.

this place, I, too, led soldiers and platoons in those troubled times in

:38:27.:38:30.

the 1980s. And I would like to pay tribute to the very vast majority of

:38:31.:38:38.

soldiers who have showed troupe of rationalism in often very hostile

:38:39.:38:43.

environments. I also agree with the -- showed true professionalhsm. I

:38:44.:38:46.

also agree that there should also be no one above the rule of law. But

:38:47.:38:50.

can he use his offices to do what he can to Expedia to this mattdr as

:38:51.:38:56.

quickly as possible? Becausd what we all want in this place on all sides

:38:57.:39:01.

is to draw a line under the troubled times so that we can move forward,

:39:02.:39:07.

and that gives best chance together with good officers on all shdes to

:39:08.:39:11.

give peace a chance and the peace process is a chance of succdeding

:39:12.:39:17.

for the longer term. I'm delighted you to called my

:39:18.:39:23.

honourable friend. He is right, we need to put all of this behhnd us.

:39:24.:39:28.

On a police investigation, H cannot interfere, I cannot interfere with

:39:29.:39:31.

any of the processes becausd to do so would be to jeopardise the course

:39:32.:39:37.

of justice and maybe, jeopardise someone's ability to clear their

:39:38.:39:38.

name. Mr Sammy Wilson. Thank you, Mr

:39:39.:39:51.

Speaker. The Minister says that the army are not above the rule of law

:39:52.:39:57.

and there is no blanket amndsty for those who they were seeking to stop

:39:58.:40:02.

killing the people of Northdrn Ireland, but the perception of the

:40:03.:40:08.

casual observer is that's bdcause of legal position or because of

:40:09.:40:11.

scandalous certificates handed out by the last Government or bx an act

:40:12.:40:18.

of the PSNI there are a grotp of killers in Northern Ireland who are

:40:19.:40:24.

immune from prosecution and that disturbs people and stirs up

:40:25.:40:27.

animosity. Could I also say to the Minister that it puts policd

:40:28.:40:33.

officers in fear that while they are dealing with the current bunch of

:40:34.:40:36.

republican terrorists that sometime in the future of their families will

:40:37.:40:41.

also whinge for enquiries and those same police officers will h`ve to

:40:42.:40:44.

stand in the dock. Can he not see that some mechanism must be used to

:40:45.:40:51.

ensure that Army personnel `re not pursued in this way? Do this last

:40:52.:40:59.

point, I can see it, but I `m not going to equate IRA killers with

:41:00.:41:03.

British forces. They are not the same and I will not encourage an

:41:04.:41:07.

alternative mechanism that somehow equates them. My view and the view

:41:08.:41:10.

of the Government is that the police must follow the rule of law, our

:41:11.:41:14.

forces must follow the rule of law and if the member is worried about

:41:15.:41:20.

perception, then we must all do more to correct that perception. I shall

:41:21.:41:23.

do more to correct that perception and next week when I meet the police

:41:24.:41:28.

and the security services, H shall certainly press on them agahn to

:41:29.:41:31.

make sure they pursued thosd people still at large and those crhmes of

:41:32.:41:36.

terrorists who have not been brought to justice. Mr Ian Paisley. Thank

:41:37.:41:44.

you, Mr Speaker. Mr Speaker, the double standards in this affair are

:41:45.:41:50.

palpable for all to see. We have hundreds of on the run lettdr is

:41:51.:41:57.

signed off clearing people of mass murder, some of several mass

:41:58.:42:02.

murderers. A dozen of them signed off by the Minister's own colleague

:42:03.:42:07.

on that bench. Is it not a disgrace that we also have people like Rita

:42:08.:42:12.

or hair freely available to meet the high ministers and presidents and

:42:13.:42:18.

yet the Minister tells us that there is no double standard here. There is

:42:19.:42:23.

a double standard and it has got to be addressed. -- Rita O'Hard. The

:42:24.:42:34.

honourable member reiterates the points that there is an unf`ir

:42:35.:42:38.

playing fields, that there hs a double standard. I do not bdlieve

:42:39.:42:41.

there is a double standard. I do believe that the police and the PSNI

:42:42.:42:46.

in their professional manner of pursuing the evidence that hs

:42:47.:42:50.

presented to them, the line of conviction is a long way from

:42:51.:42:53.

conviction and from court c`ses and who knows where it will takd is but

:42:54.:42:57.

if politicians interfere with that course of justice then we whll not

:42:58.:42:59.

solve the problems of Northdrn Ireland. We will just extend those

:43:00.:43:04.

problems and people will continue to refer back by saying that all along

:43:05.:43:09.

this was a big fix and it w`sn't really about making sure th`t

:43:10.:43:14.

justice was done. Everyone hn Northern Ireland deserves jtstice.

:43:15.:43:17.

Everyone who served in Northern Ireland deserves justice. I want to

:43:18.:43:20.

know who killed my soldiers and I will continue to ask those

:43:21.:43:23.

questions, but I will not fhnd out who killed my soldiers if wd don't

:43:24.:43:28.

move Northern Ireland forward and we don't pursue -- allow the police to

:43:29.:43:34.

do their job to pursue people to make sure that convictions `re

:43:35.:43:39.

achieved where they are desdrved. Mr Gavin Robinson. Thank you, Lr

:43:40.:43:49.

Speaker. I am alarmed that the pursuit of prosecutions is ` good

:43:50.:43:54.

opportunity for ex- service men to clear their name. Surely, as a

:43:55.:43:59.

former serviceman yourself, you can understand the anguish, the pain,

:44:00.:44:02.

and the stress of people who stood by me, my family and my colleagues

:44:03.:44:05.

and my countrymen through all of those hard days and that re`lly you

:44:06.:44:10.

should reflect as to whether the pursuit of prosecution is a worthy

:44:11.:44:14.

or noble thing for people to clear their name. I didn't actually say

:44:15.:44:22.

the pursuit of prosecutions. I said pursuing a line of enquiry hs

:44:23.:44:26.

important to allow people to clear their name. It is also important so

:44:27.:44:30.

that when the PSNI or if thd PSNI say on a number of occasions there

:44:31.:44:35.

is no evidence to answer, the public has full confidence that thd police

:44:36.:44:41.

have done all they could to establish whether that is the case.

:44:42.:44:43.

If the police and anyone else in future or the PPP rolls out charging

:44:44.:44:52.

someone, the public have to believe that is because there is no

:44:53.:44:56.

evidence. -- DPP. They cannot do it on the basis that a politichan or a

:44:57.:44:58.

minister or anyone else intdrfered with that process which would be a

:44:59.:45:02.

subjective matter and would undermine justice, not strengthen

:45:03.:45:12.

it. Order. Point of order Mr Clive Betts. On the 14th of March of this

:45:13.:45:19.

year, a Select Committee report was Buddhist on litter and fly-tipping.

:45:20.:45:25.

The convention is that Government departments will respond within 8

:45:26.:45:27.

weeks. Sometimes there is a reason for delay but it has now bedn 8

:45:28.:45:36.

months since the report was produced and we are still no nearer to

:45:37.:45:41.

getting a response. I think this is a disrespect to the house as a whole

:45:42.:45:46.

and I wonder whether you, Mr Speaker, could use your offhce to

:45:47.:45:49.

get the support now responddd to in a proper manner? I thank thd

:45:50.:45:54.

honourable member for his courtesy in giving me notice of this point of

:45:55.:46:00.

order. Clearly, it is important to the effectiveness of select

:46:01.:46:03.

committees that Government departments respond promptlx to

:46:04.:46:09.

their reports. The Government's own guidance makes clear that

:46:10.:46:12.

departments should aim to rdspond to committee reports within 2 lonths

:46:13.:46:18.

and only in exceptional circumstances should the response be

:46:19.:46:22.

deferred for more than 6 months after the report has been ptblished.

:46:23.:46:29.

I trust that the concerns expressed by the honourable gentleman, who is

:46:30.:46:32.

after all a cheer of communhties and local government, has been noted on

:46:33.:46:39.

the Treasury bench and that the Government's response will shortly

:46:40.:46:43.

follow. For the avoidance of doubt, and saw that this is well rdcalled

:46:44.:46:50.

both in the house and beyond, I reiterate what the honourable

:46:51.:46:55.

gentleman said. This import`nt report was entitled litter `nd

:46:56.:46:59.

fly-tipping in England. It was published on the 14th of March

:47:00.:47:06.

2015. It is hard to see why the Government has not been abld to get

:47:07.:47:10.

round to determining and publishing a response. It should now do so If

:47:11.:47:19.

there are no further points of order and before we come to the 10 minute

:47:20.:47:25.

rule motion, I had to notifx the house in accordance with thd Royal

:47:26.:47:30.

assent act 1977 that Her Majesty has signified her Royal assent to the

:47:31.:47:35.

following act. Finance numbdr 2 act, 2015. Order. 10 minute rule

:47:36.:47:46.

motion. Mr Scott manner. -- Mr Scott manner. I beg to move the b`by given

:47:47.:47:53.

to me to amend the bill to part 6 of the Road traffic regulations act

:47:54.:47:58.

1984 and the local authoritx's traffic orders regulations 0996 to

:47:59.:48:06.

make provision about the powers and duties of town and parish councils

:48:07.:48:10.

in relation to applying the speed limit orders and to provide for the

:48:11.:48:13.

conduct of the local referendum to determine whether such an

:48:14.:48:17.

application should be made `nd for the connected purposes. This is

:48:18.:48:23.

bigger, this bill accomplishes main objectives. Firstly, this bill

:48:24.:48:28.

encourages safer environments for motorists and pedestrians. Secondly,

:48:29.:48:32.

this bill empowers local communities. This bill will give

:48:33.:48:34.

town and parish councils thd ability to hold a referendum to change their

:48:35.:48:39.

speed limits. Mr Speaker, this really gives power to local people.

:48:40.:48:44.

Local people know best about the limits on their votes, whether they

:48:45.:48:48.

are too fast or too slow. They know better than an officer of the

:48:49.:48:53.

council might reside some mhles away from the place. They live there

:48:54.:48:55.

They know the environment of the rules and they know the motorists

:48:56.:49:00.

and the pedestrians that usd those roads. Mr Speaker, I have only been

:49:01.:49:03.

an honourable member of this house for 6 months, and yet in th`t time,

:49:04.:49:07.

I have had a coherent message communicated to me by consthtuents,

:49:08.:49:13.

parish councils, and schools, and the roads in their communitx are

:49:14.:49:16.

becoming dangerous and I sh`ll name some examples. In a small political

:49:17.:49:23.

stratagem, we have a primarx school situated on a very nasty junction

:49:24.:49:27.

which sees very large lorrids and cars speeding past. When I visited

:49:28.:49:31.

the site, I met with parents and children who showed me how they

:49:32.:49:36.

cross a road with a tiny little traffic island. Because of this

:49:37.:49:39.

both sides of the world are busy and the traffic has to pass within

:49:40.:49:43.

inches of the pavement. It hs clearly evident that this road is

:49:44.:49:46.

too dangerous for children to get to school and people have resorted to

:49:47.:49:50.

driving as an option that is clearly not sustainable in the long term.

:49:51.:49:54.

Not far from this road is a small village called Werrington. We saw

:49:55.:49:58.

recently a car crash into the local school boundary wall becausd of

:49:59.:50:02.

excessive speed. Locals and schools have campaigned for a 20 mph speed

:50:03.:50:08.

limit to ensure safety of children, pedestrians and fellow motorists. I

:50:09.:50:12.

received several handwritten letters from the children at Werrington

:50:13.:50:16.

school asking for something to be done and for the vote to be made

:50:17.:50:21.

safer. In another village in my constituency, we have seen speeding

:50:22.:50:26.

cars passing schools and holes near very narrow pavements were people

:50:27.:50:31.

walk. These can't be widened and it would cost far too much for the Road

:50:32.:50:34.

to be redesigned, but a lowdr speed limit could help. Nearby, mdmbers of

:50:35.:50:42.

a parish council met with md to talk about speeding cars on the @39 where

:50:43.:50:48.

they reach excessive speeds of over 60 mph. This is far too fast for

:50:49.:50:52.

some local people. These ard just for some local people. Thesd are

:50:53.:50:57.

dysphoric samples specific hssues and I'm sure honourable and Right

:50:58.:51:01.

Honourable members will havd very similar issues in their are`s. This

:51:02.:51:04.

bill gives them the power to do something about it. Mr Speaker, I

:51:05.:51:10.

have looked at some statisthcs on this and it is truly amazing.

:51:11.:51:16.

According to the data published in the 2012 House of Commons lhbrary,

:51:17.:51:21.

there were nearly 196,000 rdported casualties on roads in Great Britain

:51:22.:51:27.

including 1754 fatalities and 2 ,000 serious casualties. On 30 mph roads,

:51:28.:51:35.

there were 582 fatal accidents. On 20 mph, there were 9. 2/3 of

:51:36.:51:41.

accidents happen in a 30 mph limit, whereas only 1.5% were on 20 mph

:51:42.:51:48.

votes. This is simply quite staggering and illustrates why

:51:49.:51:51.

people in some areas want to campaign for a lower speed limit.

:51:52.:51:57.

The implementation of a 20 lph limit is particularly vital outside

:51:58.:52:00.

schools, which often face htrdles when asked for speed or traffic

:52:01.:52:06.

calming measures. For me, I don t see as many school patrol crossings

:52:07.:52:10.

as they used to, there are undoubtedly in decline. I h`d

:52:11.:52:14.

parents and my constituency who rely on a mere island to aid thehr

:52:15.:52:19.

passage to school. I went to a premise: My constituency to meet

:52:20.:52:22.

with concerned parents who faced the challenge on a daily basis of

:52:23.:52:25.

getting their children to school safely and, Mr Speaker, if parents

:52:26.:52:30.

and my constituency want thd road outside their school lowered because

:52:31.:52:33.

they fear for their children's safety, their voices must bd heard.

:52:34.:52:36.

Now, of course, referendums are not cheap and they do need planning full

:52:37.:52:41.

stop therefore, I am not proposing that a referendum be held

:52:42.:52:43.

spontaneously at any time. Hf there is a will of the people for the

:52:44.:52:47.

speed limit to be lowered from 0 mph to 20 mph then there is a will

:52:48.:52:51.

of the people for the speed limit to be lowered from 30 mph to 20 mph

:52:52.:52:58.

then their voice referendums should be held in line with other local

:52:59.:53:03.

elections, national elections, by-elections and town and p`rish

:53:04.:53:06.

elections. This will save considerable costs to the t`xpayer.

:53:07.:53:11.

The desire for a referendum will also need to be present. Town and

:53:12.:53:15.

parish councils should be able to judge whether they feel a rod or an

:53:16.:53:18.

issue in the road needs addressing. It must also be pointed out that

:53:19.:53:22.

this bill is to alter speed limits, not just to lower them. Every town

:53:23.:53:26.

or village wanted to raise ` speed limit, then they would have the

:53:27.:53:29.

option to do that as well, hf local people wanted to vote for that. If

:53:30.:53:33.

representation is strong from the community and there is no strategy

:53:34.:53:37.

being put forward by the local authority to address it, thdn the

:53:38.:53:41.

vote should be put to the pdople. If committees vote yes, then the local

:53:42.:53:44.

authority must begin work to implement that speed limit. To make

:53:45.:53:49.

sure that councils do not persistently decide to hold

:53:50.:53:51.

referendums on 1 board after another broad, then they could list a number

:53:52.:53:56.

of road in the area at the same time they could put forward a proposal

:53:57.:54:00.

for a whole area such as a town centre. This would create a blanket

:54:01.:54:04.

change rather than some roads changing and some not. Mr Speaker, I

:54:05.:54:09.

truly believe that in these times of increasing car journeys, it is vital

:54:10.:54:12.

we keep people safe. There hs also the case that we are seeing huge

:54:13.:54:16.

housing growth in some areas and as these houses are built, mord parents

:54:17.:54:20.

and children are walking to school, more public transport is behng

:54:21.:54:27.

moved, more heavy vehicles `re being transported. This committee is

:54:28.:54:29.

passionate about giving powdr to the people. We have seen the devolution

:54:30.:54:33.

packages that have been delhvered such far, such as the Department of

:54:34.:54:38.

business rates, the recent historic Cornish devolution deal, and giving

:54:39.:54:43.

power to the people to reject town planning applications.

:54:44.:54:48.

I believe this will indirectly get people more interested in politics

:54:49.:54:54.

and create more understanding in the political process. If there is a

:54:55.:54:57.

majority that won the changd, but their name to the bill, and they can

:54:58.:55:02.

they say they can change thdir local community. I believe this bhll will

:55:03.:55:10.

empower people and directly impact their behaviour on the

:55:11.:55:16.

the question is that the honourable member have lead to bring in the

:55:17.:55:21.

Bill. As many as are of the opinion, say "aye". To the contrary, "no ..

:55:22.:55:25.

Who will prepare and bring hn the Bill? Derek Thomas, Alex Ch`lk,

:55:26.:55:32.

Maggie Thorpe and myself. Perfect! No errors! Very good! Speed

:55:33.:56:01.

limits on roads, devolved powers bill. Second reading what they?

:56:02.:56:10.

Friday 5th of February 2016. Order. We come now to the main bushness,

:56:11.:56:23.

opposition day, ten a day. @nd - the 10th allotted day. The first of

:56:24.:56:28.

our scheduled debates. This is on a motion in the name of the Ldader of

:56:29.:56:31.

the Opposition on the government's record on the economy. The `mendment

:56:32.:56:39.

has not been selected. To move the motion, I called the Shadow

:56:40.:56:45.

Chancellor, Mr John McDonnell. Thank you, Mr Speaker. We have chosen to

:56:46.:56:50.

devote a section of today's opposition day to set the scene for

:56:51.:56:54.

next week's Autumn Statement and comprehensive spending revidw. This

:56:55.:56:57.

will be the last chance manx MPs from across the House will have two

:56:58.:57:01.

put their case to the Chancdllor before he comes to his final

:57:02.:57:06.

conclusions on his spending plans and economic strategy for the coming

:57:07.:57:09.

period. The Chancellor is not here today, we will -- were naturally

:57:10.:57:18.

disappointed but I spoke to him before the debate and he is working

:57:19.:57:22.

hard on the spending review and we will forget him if he gets his sums

:57:23.:57:26.

right. The Chancellor's poshtion next week will have serious

:57:27.:57:29.

consequences for every constituency in the country. What we all need

:57:30.:57:31.

from the Chancellor is wise judgment from the Chancellor is wise judgment

:57:32.:57:37.

and fairness. Our country f`ces serious challenges and risks ahead

:57:38.:57:40.

and we should not underestilate them. Let me first deal with one

:57:41.:57:47.

issue that overrides all others It has been heartbreaking to w`tch the

:57:48.:57:51.

tragic events in Paris at the weekend unfold, into the suffering

:57:52.:57:54.

of families, coming to the realisation of their loss. H sent a

:57:55.:58:00.

message of condolence and solidarity to our counterparts, the Frdnch

:58:01.:58:04.

finance minister, at the wedkend. The first duty of this statd is to

:58:05.:58:10.

protect its citizens so can I assure the Chancellor that he and the

:58:11.:58:14.

timing minister had our full support for the stance -- and the Prime

:58:15.:58:19.

Minister have our full support for the enhanced spending on defence

:58:20.:58:22.

they have announced this wedk. We share the view of the Metropolitan

:58:23.:58:25.

police Commissioner and othdr police chiefs that are often the fhrst line

:58:26.:58:30.

of intelligence on potential hazards and threats to our safety, `nd

:58:31.:58:36.

responding to them if the police officer in the community on on the

:58:37.:58:40.

street. There has been a grdat deal of speculation on the scale on the

:58:41.:58:47.

cuts to the police service, hunting severe warnings of a cross-party

:58:48.:58:51.

basis about the consequences for the public if the scale of cuts goes

:58:52.:58:55.

ahead. Can I also reassure the Chancellor that we would also

:58:56.:58:59.

support an urgent review of the policing budget proposals to avert

:59:00.:59:04.

this risk to the service, and we would support any enhanced

:59:05.:59:08.

expenditure plans being placed outside the parameters of the fiscal

:59:09.:59:11.

constraints of the Charter for budget responsibility. Would my

:59:12.:59:20.

honourable friend agree that the tragic atrocities in Paris, as they

:59:21.:59:24.

were focused on young peopld in the social environment, suggests that

:59:25.:59:28.

such attacks could occur anxwhere in Britain at any time?

:59:29.:59:33.

I think we are all fearful of the risk that there is, but also we

:59:34.:59:37.

place confidence in our intdlligence and policing services. To bd frank,

:59:38.:59:42.

now is not the time to be dogmatic when our community is under such

:59:43.:59:48.

heightened physical threat. When it comes to national security `nd

:59:49.:59:50.

keeping the public safe, I say to the Chancellor and the government,

:59:51.:59:55.

they will always have the stpport of the Labour Party. Let me now turn to

:59:56.:59:59.

an issue of fairness which H am hoping the ministers could reassure

:00:00.:00:03.

us today that the Chancellor has now sorted out once and for. Thhs is the

:00:04.:00:08.

issue of tax credits. I dig it came to a shocked to members on `ll sides

:00:09.:00:14.

of the House -- think it cale as a shock, when the Chancellor brought

:00:15.:00:19.

forward proposals to cut tax credits without fully, bending the

:00:20.:00:23.

consequences of his actions, he was an error of judgment. I would like

:00:24.:00:29.

to thank members in all parties and our colleagues in the other place

:00:30.:00:32.

who found they could not support the Chancellor's proposal and forced him

:00:33.:00:36.

to think again. I think what convinced many people is ex`ctly

:00:37.:00:41.

what Gordon Brown our former prime ministers some up so eloquently last

:00:42.:00:46.

week. This was an attack on children. The prospect of 200,0 0

:00:47.:00:50.

more children being pushed hnto poverty I think pushed many MPs and

:00:51.:00:54.

members of the other place over the edge to oppose these propos`ls.

:00:55.:00:58.

There has been a lot of spec elation in the press about how the

:00:59.:01:00.

Chancellor has been trying to resolve the tax credits I string,

:01:01.:01:12.

much talk of cuts to universal credit and threats of quitthng, I am

:01:13.:01:15.

pleased the quiet man has h`d to raise his voice and has won the day.

:01:16.:01:21.

But it has now gone on to housing support. I do not expect ministers

:01:22.:01:25.

to resolve this today, but the million people who face a ctt of

:01:26.:01:31.

?3000 per year, can ministers at least assure us and those f`milies

:01:32.:01:38.

that they will be withdrawing tax credit cuts in full and thehr

:01:39.:01:42.

existing or new claimant wotld lose out? Can I give him another reason

:01:43.:01:47.

for tackling this issue head on In North Wales, ?58 million will be

:01:48.:01:53.

taken out of the local economy in the ten constituencies across North

:01:54.:01:57.

Wales next year if the proposal goes ahead. That is money that whll be

:01:58.:02:01.

spent in local shops, local businesses, local communitids. And

:02:02.:02:06.

if that is taken out not only will families and children suffer, but

:02:07.:02:13.

local with this. As well. -, will suffer as well. At a time when we

:02:14.:02:18.

are trying to grow the economy, it seems bizarre way to bring `bout a

:02:19.:02:26.

local recession. Would he not accept that having not just acceptdd a

:02:27.:02:30.

friend for his honourable friend, the same argument could be deployed

:02:31.:02:34.

in never ever cutting the ddficit ever? The whole point of thd debate

:02:35.:02:41.

is about political choices. And to be frank, I think on a cross-party

:02:42.:02:46.

basis, we said to the Chancdllor in debate to debate, this was the wrong

:02:47.:02:50.

political choice and therefore he should look elsewhere. All H urge

:02:51.:02:54.

today is not the detail on how he is resolving this, we will wait for

:02:55.:02:58.

that, but the assurance that no one will lose out. I think families out

:02:59.:03:01.

there want that assurance now because of the security thex face.

:03:02.:03:09.

I'm extremely grateful. With a constituency like mine of Sdlly Oak

:03:10.:03:16.

now in the top 13% in the country for unemployment, with more than 20%

:03:17.:03:23.

of those in work not earning a living wage and over 60% dependent

:03:24.:03:29.

on tax credits, isn't it cldar that five years of the long-term economic

:03:30.:03:32.

plan has not worked for Selly Oak? What we need next week is not a

:03:33.:03:36.

rethink but a step change in the approach to working families. I am

:03:37.:03:41.

hoping that that is what thd Chancellor is working on at the

:03:42.:03:44.

moment and that is why he c`nnot be with us. The honourable member has

:03:45.:03:52.

mentioned children twice so far The Greek government overspend, leading

:03:53.:03:55.

this September ten of thous`nds of children on school increase. Does

:03:56.:03:58.

the honourable member not accept that a country does not look after

:03:59.:04:03.

its finances does not look `fter its children? Of course that is true,

:04:04.:04:11.

there are four economies. On a cross-party -- full economids. On a

:04:12.:04:14.

cross-party basis we came to the conclusion that cutting tax credits

:04:15.:04:16.

is a 4th -- a fourth economx. -- it is not a good true economy. I

:04:17.:04:30.

know that large numbers of people want to speak in this debatd. I

:04:31.:04:36.

would say it would be helpftl to have the insurance today th`t no one

:04:37.:04:41.

would lose out. I have repe`tedly said that if the Chancellor

:04:42.:04:46.

withdraws the tax credit cuts in full, and fairly, he will h`ve our

:04:47.:04:51.

support. In fairness, can mhnisters also assure us that if the

:04:52.:04:55.

Chancellor does scrap his t`x credit cuts, this will not be paid for by

:04:56.:04:59.

cutting the benefits and support to families elsewhere? I seek that

:05:00.:05:04.

assurance because unfortunately the Chancellor does have a bit of a

:05:05.:05:07.

reputation for giving with one hand and taking with another. I

:05:08.:05:13.

acknowledge and appreciate his wish to do cross-party support in

:05:14.:05:20.

reducing the deficit and I take it from his stance that his party

:05:21.:05:24.

opposite do want to take control of the deficit. So where did hd suggest

:05:25.:05:30.

those cuts are made? The he`lth service, schools, local govdrnment

:05:31.:05:34.

budgets? Is a defence? Would he give some suggestions on how he would

:05:35.:05:40.

reduce the deficit? We have raised this time and time again. I think

:05:41.:05:43.

what was in Congress when wd debated this previously, at the samd time

:05:44.:05:49.

when the Chancellor was seeking to cut working tax credits, he was

:05:50.:05:53.

reducing inheritance tax for the wealthiest families in our country.

:05:54.:06:01.

I think in many ways people saw that as basically unfair. There hs much

:06:02.:06:05.

that we are hoping for in the Chancellor's address in next week's

:06:06.:06:09.

statement. We know we must continue to bear down on the deficit and debt

:06:10.:06:14.

but this also has to be dond with realistic good judgment and

:06:15.:06:18.

fairness. I say realistically because it undermines confidence in

:06:19.:06:23.

Dublin overall if we go through another CSR is a good five xears ago

:06:24.:06:28.

when the Chancellor announcdd in 20 ten that he would eliminate the

:06:29.:06:34.

deficit in five years and wd have only got half way. In the l`st

:06:35.:06:39.

financial year, the budget deficit stood at 44 billion. I remelber as

:06:40.:06:43.

well in 2010 that the Chancdllor said he would reduce the debt will

:06:44.:06:48.

stop to 69%, it now stands `t more than 80%. The mistakes of the last

:06:49.:06:58.

CSR should not be repeated hn this. Our fiscal rules should be

:06:59.:07:06.

realistic, achievable and f`ir. I have heard him and his colldagues

:07:07.:07:11.

criticise the government on many occasions for cutting too f`st. Is

:07:12.:07:14.

he now suggesting that we should have actually cut faster? If so I

:07:15.:07:18.

am sure we would be more th`n happy to cooperate. I am happy for that

:07:19.:07:24.

cooperation at any stage. The issue that we said to the Chancellor five

:07:25.:07:29.

years ago was, actually he was going too fast and he should have been

:07:30.:07:31.

investing in growth and that would have enabled us to reduce the

:07:32.:07:36.

deficit. In reality he promhsed to reduce the deficit in five xears,

:07:37.:07:39.

now he is going to do it in pen a doubling of the target. -- hn ten.

:07:40.:07:49.

Can he reminded the House at what rate of debt the Chancellor has

:07:50.:07:56.

managed to accrue, is it a `bout the same amount of debt that 13 years of

:07:57.:08:03.

Labour government accrued, the Chancellor has accrued in fhve

:08:04.:08:08.

years? The figures are 55% hn five years. I think that is helpful. Let

:08:09.:08:15.

me press on. I think we need to be realistic as well that our dconomy

:08:16.:08:19.

also faces severe challenges. I warned in September that many of the

:08:20.:08:23.

factors that contributed to the last economic crisis are emerging again.

:08:24.:08:27.

This is the slowest recoverx in living memory. It is based on rising

:08:28.:08:32.

house prices and unsecured consumer lending, rising at record r`tes The

:08:33.:08:40.

governments own forecasts expect household debt to surpass the levels

:08:41.:08:46.

reached before the crash. Wd have an increasingly unbalanced economy

:08:47.:08:49.

based on more than ever on hnsecure jobs in the service sector `nd an

:08:50.:08:56.

overreliance on the finance sector. If I can press on, I will come back

:08:57.:09:03.

to him. Regrettably all of the predictions are that manufacturing

:09:04.:09:08.

is likely to go into recesshon next month. The UK's current campus it,

:09:09.:09:13.

the balance of payments, was at an all-time high last year. -- current

:09:14.:09:20.

account deficit. This was a slump in British investors owning abroad

:09:21.:09:24.

while those in the rest of the world continue to profit from the assets

:09:25.:09:27.

we sell and the loans we take out. The warning signs in the rest of the

:09:28.:09:31.

world are there but the Chancellor is bequeathing us an economx even

:09:32.:09:36.

more poorly repaired than it was in 2008. Back then we had room for

:09:37.:09:42.

manoeuvre, the Bank of Engl`nd could cut interest rates to rock bottom,

:09:43.:09:46.

sustaining the economy as the global recession hit. It hit hardest

:09:47.:09:51.

because our financial systel was over exposed to risk, it did not and

:09:52.:09:57.

would not understand. But at least the government could take action. It

:09:58.:10:02.

introduced quantitative eashng. Seven years on, the Bank of England

:10:03.:10:05.

base rate remains jammed at the lowest level in history, thd room

:10:06.:10:09.

for manoeuvre unconventional monetary policy is essentially zero.

:10:10.:10:16.

In terms of the economy, dods he welcomed the figures in my

:10:17.:10:22.

constituency which show that those claiming jobseeker's allowance are

:10:23.:10:25.

down by 30% and shows that those people on this side of the house are

:10:26.:10:30.

on the side of working people. Of course we welcome any incre`se in

:10:31.:10:36.

employment and reductions in unemployment. The problem is that

:10:37.:10:40.

the economy is unsustainabld at the moment and my fear is that those

:10:41.:10:44.

jobs gained in the last year may be lost in the forthcoming crisis if we

:10:45.:10:48.

don't take avoidance action. I quote Andrew Haldane, the chief economist

:10:49.:10:53.

at the Bank of England, who has warned that the 3rd wave of the

:10:54.:10:59.

financial crisis is now bre`king and, centred on China, could have an

:11:00.:11:03.

impact on Britain. Britain hs the country with the largest single

:11:04.:11:07.

exposure to Chinese debt at $500,000,000,000. Any upset in the

:11:08.:11:11.

rest of the world will, thanks to our extraordinary large fan`ticism,

:11:12.:11:15.

rapidly make its way here. That s exactly how the last crisis

:11:16.:11:22.

happened. -- large financial system. That is when the failure in the

:11:23.:11:26.

American Society turns to f`ilure in this society. We cannot know what

:11:27.:11:29.

will happen over the next fdw years. I will give way in a minute. The

:11:30.:11:33.

Chancellor has warned repeatedly of trouble ahead, but surely these

:11:34.:11:37.

challenges are better faced if we have a more balanced and more

:11:38.:11:40.

resilient economy that can provide real security for all of us.

:11:41.:11:45.

Instead, we have a single-mhnded fixation on a single target, the

:11:46.:11:52.

2020 surplus that no credible economist now supports. By clinging

:11:53.:11:57.

on so tenaciously it appears that the Chancellor is putting the needs

:11:58.:12:00.

of his own political career ahead of the country. He refers in hhs

:12:01.:12:10.

remarks to our balanced trade. Part of the impact of that is our country

:12:11.:12:14.

has been growing. Dividends are up and those who are investing in the

:12:15.:12:17.

UK are taking more money because we are growing. We could be investing

:12:18.:12:22.

in China because it is growhng. Would he ban investment in China?

:12:23.:12:27.

The problem is that growth has not been growing enough. In addhtion to

:12:28.:12:31.

that, the situation is that we have sold off so many of her assdts now,

:12:32.:12:36.

the money is pumping out of this country rather than being invested

:12:37.:12:40.

in it and actually because we are not investing in home-grown

:12:41.:12:43.

investments, in our own economy it is flowing abroad. That is causing

:12:44.:12:48.

imbalances. In addition to that unfortunately our trade and

:12:49.:12:51.

particularly manufacturing has not picked up on the scale it should

:12:52.:12:55.

have done. Let me press on. We know now from the drip feed of

:12:56.:13:00.

announcements that the Chancellor intends to make potentially

:13:01.:13:02.

devastating cuts to Governmdnt departments and welfare spending.

:13:03.:13:07.

Let me make it clear. Austerity is a political choice. It is not an

:13:08.:13:10.

economic necessity. The record of this Government shows that the

:13:11.:13:15.

political choice the Chancellor is making are having a devastating

:13:16.:13:20.

impact on people across the UK. In many cases, these cuts are following

:13:21.:13:23.

on the heads of people least able to afford them. Let's take loc`l

:13:24.:13:31.

Government, shall we? Since 201 , there has been a 40% real tdrms cut

:13:32.:13:36.

in the transfer councils. In adult social care, for the reducthons have

:13:37.:13:41.

meant dealing with a ?5,000,000 funding gap and where are these cuts

:13:42.:13:45.

following? According to the eye F S, the 10 most deprived local `uthority

:13:46.:13:52.

areas have lost ?782 per hotsehold while the 10 wealthiest are`s lost

:13:53.:13:57.

just ?48 per household. The consequences on people's incomes, on

:13:58.:14:02.

their lives, and on the services they rely on. The consequences of

:14:03.:14:06.

this Chancellor's choices are that ordinary people across this country

:14:07.:14:11.

have been left worse off. The Chancellor has made choices and

:14:12.:14:15.

still failed to meet his self-imposed fiscal targets, so I

:14:16.:14:21.

pose the question, are the choices being made right, are they loral, or

:14:22.:14:25.

are they fair? If the answer to any of these questions is no colmittee

:14:26.:14:28.

needs to rethink and he needs to rethink fast. Does he seriotsly

:14:29.:14:36.

preach about making the right choices when his party was

:14:37.:14:39.

responsible for the highest level of public sector borrowing. Is that the

:14:40.:14:45.

joys that he is recommending here? More borrowing, more burden on

:14:46.:14:49.

British men and women, just to feed the coffers of Government? We have

:14:50.:14:57.

to explain again. The deficht did not cause the crisis. The crisis

:14:58.:15:03.

caused the deficit and when Gordon Brown was Chancellor of geeks and

:15:04.:15:07.

intervened with regard to quantitative easing and with regard

:15:08.:15:10.

to reducing interest rates, he was supported across the house because

:15:11.:15:15.

that was the way of actuallx saving what was left of our financhal

:15:16.:15:19.

system in this country as a result. If I can press on. Let me s`y less.

:15:20.:15:25.

There is an alternative to the cuts. The Chancellor could, within

:15:26.:15:29.

the 5-year time frame of thd spending review, seek to lax out

:15:30.:15:33.

what was required, a long-tdrm vision of the economy and how a

:15:34.:15:36.

Government can help deliver it. He says he wants high wage, low tax,

:15:37.:15:44.

and Loewen welfare -- low wdlfare, but we all want people in work

:15:45.:15:48.

because that is the surest way to bring down the deficit. That is what

:15:49.:15:52.

we have been arguing. The Chancellor has no proposal as to where these

:15:53.:15:56.

jobs are to come from. All he had to offer was the national living wage,

:15:57.:16:00.

which is set below the official living wage, so it is a nathonal

:16:01.:16:04.

living wage you can't live on and it is nowhere near enough to compensate

:16:05.:16:08.

for the proposed cuts to tax credits. The Chancellor cannot

:16:09.:16:11.

deliver high wages unless hd is delivering investment. Investment is

:16:12.:16:16.

the fuel that provides future growth. Spending on new content and

:16:17.:16:21.

technology and infrastructure is what will deliver well-paid, secure

:16:22.:16:24.

jobs in the future. But invdstment in the UK is still below its

:16:25.:16:32.

pre-crash level share of GDP and that level of investment is itself

:16:33.:16:37.

far below what we see in Fr`nce Germany, or the US. Failure to

:16:38.:16:44.

invest has a dramatic impact. Every hour worked in Germany is on average

:16:45.:16:49.

a 3rd more productive than dvery hour worked here. Productivhty has

:16:50.:16:54.

flat lined in this country. Our flexible Labour market has lade it

:16:55.:16:58.

too easy for employers to rdly on low pay. The Chancellor's rdsponse

:16:59.:17:04.

has been woeful. I thank thd honourable gentleman giving way If

:17:05.:17:09.

he is so set against any form of welfare reform, why didn't he and

:17:10.:17:11.

his party vote against the 2nd his party vote against the 2nd

:17:12.:17:16.

reading of the Welfare Reform Bill? Why had he come to the road to

:17:17.:17:23.

Damascus now? Well, I did. Shall I say to the honourable lady, in that

:17:24.:17:30.

debate there was a way in which we could reform welfare and at the same

:17:31.:17:33.

time make sure people were not losing out and 1 of the argtments

:17:34.:17:37.

that we put forward as a party, we put forward the argument with

:17:38.:17:40.

regards to housing benefit `nd the way we reduce housing benefht and

:17:41.:17:43.

build the homes that people need to make sure people have a roof over

:17:44.:17:46.

their heads and in that way we reduce rent levels as well. Can I

:17:47.:17:54.

say, instead of investing in the future using the Government's own

:17:55.:17:57.

powers to carefully borrow `nd invest wisely, the Chancellor has

:17:58.:18:01.

allowed Government spending on our vital infrastructure to fall from

:18:02.:18:07.

3.2% of GDP in the last year to just 1.6 percent today. -- in thd last

:18:08.:18:13.

year of the Labour Government. That is less than half the level but

:18:14.:18:21.

should be necessary to sust`in a decent standard of living. @ lack of

:18:22.:18:24.

investment is why the National Grid is warning of electricity shortages

:18:25.:18:28.

this winter. It is white to many businesses suffer from poor

:18:29.:18:32.

broadband connections and transport delays. The Chancellor's response to

:18:33.:18:36.

growing calls from business has been to run to the Chinese Government and

:18:37.:18:39.

hope they will get out of this mess. We're been presented with the

:18:40.:18:44.

extraordinary sight of a Brhtish Chancellor of the Exchequer refusing

:18:45.:18:47.

to use his own Government's powers of investment but more than happy to

:18:48.:18:50.

exploit those of the Chinesd and whilst every other major developed

:18:51.:18:54.

country is pushing up their research and development spending,

:18:55.:18:57.

recognising the future valud of science and technology, our

:18:58.:19:00.

Government has cut spending by ?1,000,000,000 in real terms. The

:19:01.:19:06.

Coalition Government impact gave a fund of ?160,000,000 to agrhcultural

:19:07.:19:14.

technology investment which is continued through the Government

:19:15.:19:16.

through the regional growth funds which is really keeping the East --

:19:17.:19:28.

helping the East. So far, the investment has been at such a low

:19:29.:19:31.

level I don't think it is h`ving the impact it should have. Have we come

:19:32.:19:39.

to training and investment hn training, research from the House of

:19:40.:19:46.

Commons library has shown that investment in colleges could fall by

:19:47.:19:49.

1 point explain pounds under the Government's current plans. Local

:19:50.:19:55.

councils, often the engines for investment led growth, are having

:19:56.:19:58.

their budgets cut to ribbons and even statutory services are now at

:19:59.:20:01.

risk. All of this confirms that actually there is no long-tdrm

:20:02.:20:06.

economic plan. It is a short-term quick fix from a Chancellor that

:20:07.:20:09.

can't think past the Conservative leadership election. It is the st

:20:10.:20:19.

occasion I need to disagree with my honourable friend. I think there is

:20:20.:20:22.

a long-term economic plan and that is to drive down the amount of money

:20:23.:20:27.

spent by Government within GDP to 1920s levels. Isn't that re`lly the

:20:28.:20:32.

agenda and a not very hidden agenda at that? I think there is an agenda

:20:33.:20:38.

from the Chancellor to shrink the state and to privatise most of what

:20:39.:20:42.

is left. Can I press on and I will fairly quickly? Labour instdad would

:20:43.:20:48.

seek to use Government powers to invest to deliver a world-class

:20:49.:20:51.

infrastructure across the whole country. The northern powerhouse

:20:52.:20:54.

will only become a reality when it is much by real spending colmitments

:20:55.:20:59.

and we build on our country's history of science, technology and

:21:00.:21:01.

innovation to deliver real hncreases in funding for research and develop

:21:02.:21:06.

it, seeking to match the colmitments made by our neighbours, and we will

:21:07.:21:10.

work alongside the private sector to ensure that our businesses, rather

:21:11.:21:15.

than hoarding cash to the ttne of at least ?400,000,000,000, would be

:21:16.:21:18.

seeking out opportunities to invest in the future. That is the role of a

:21:19.:21:23.

strategic stake. The green investment bank has been a real

:21:24.:21:27.

success, generating investmdnt in renewable energy projects. Hn just 3

:21:28.:21:31.

years, it has invested in 58 projects, committing ?2.3 bhllion of

:21:32.:21:34.

its own money and leveraging over ?10,000,000,000 -- ?10,000,000 in

:21:35.:21:41.

private capital. Good my honourable friend tell me his thoughts on the

:21:42.:21:45.

Government's plan to privathse the green investment bank? Just at a

:21:46.:21:49.

stage where we were about to kick off with regard to renewablds, the

:21:50.:21:53.

Government is now undermining the future. She, like me, will have

:21:54.:21:58.

spoken to some of the companies Some have gone to the wall `nd some

:21:59.:22:02.

are struggling. I think it hs a short and devastating blow. If I can

:22:03.:22:09.

press on, I will conclude. We will work alongside private sector

:22:10.:22:14.

companies to reduce those resources. Let me say that next week

:22:15.:22:23.

what many in our economy want to hear from our Chancellor. Fhrstly,

:22:24.:22:27.

he must reverse in full and fairly his cuts on tax credits. Thhs should

:22:28.:22:32.

be his absolute priority. Sdcondly, there should be fun brought forward

:22:33.:22:36.

which will support investment to well beyond the minimum 2.5$ of GDP

:22:37.:22:42.

both in terms of investment in infrastructure and training.

:22:43.:22:45.

Thirdly, we need a plan to `ddress the balance of payments crisis that

:22:46.:22:49.

we are now facing so that wd can pay our way in the world once more. The

:22:50.:22:54.

focus on 1 deficit and allowing another deficit possibly more

:22:55.:22:58.

serious to be ignored. Yes, we want a realistic plan to tackle the

:22:59.:23:02.

deficit based upon sustainable economic growth and fair and wise

:23:03.:23:07.

judgments and finally, an end to the self-defeating cuts to HM asked the

:23:08.:23:14.

and a serious programme to `ddress tax evasion and avoidance and the

:23:15.:23:19.

overall efficacy of our tax system. If the Chancellor fails to take the

:23:20.:23:23.

steps, he places in jeopardx the long-term health of our economy The

:23:24.:23:29.

choice next week is for him to make. Order. The question is on the order

:23:30.:23:33.

paper. I call the economic secretary. Thank you, Mr Spdaker.

:23:34.:23:40.

Can I start by associating lyself with the honourable gentlem`n 's

:23:41.:23:44.

Mike sentiments on the French atrocities and on the importance of

:23:45.:23:50.

our security forces and I and other Treasury ministers yesterdax were

:23:51.:23:53.

able to sign the book of condolence at the French Embassy. But, Mr

:23:54.:24:01.

Speaker, the fact is that Hdr Majesty's opposition is now

:24:02.:24:04.

represented on economic polhcy by a man who wants to overthrow

:24:05.:24:10.

capitalism, by a man who wants to nationalise businesses without

:24:11.:24:15.

compensation and a man who `nswers to Len McCluskey, a man who thinks

:24:16.:24:22.

that printing money, triggering the inflation that hurts the poor and

:24:23.:24:26.

the elderly the most, is a good thing. And he thinks, Mr Spdaker,

:24:27.:24:34.

that a budget surplus, and H quote, is barmy. He think we can b`lance

:24:35.:24:44.

the books by avoiding any ctts whatsoever. He is a height tax, high

:24:45.:24:50.

inflation, high unemployment socialist, who draws his economic

:24:51.:24:56.

inspiration from the Venezudlan economy and from Syriza in Greece.

:24:57.:25:03.

So today, we will not take `ny economic lectures from him hn terms

:25:04.:25:07.

of running our policies, and we on this side of the house will do

:25:08.:25:11.

everything in our power to keep him in opposition. Would she relind us

:25:12.:25:20.

just how many pound notes the Bank of England has printed in

:25:21.:25:25.

quantitative easing? The monetary policy has been run by

:25:26.:25:31.

the Bank of England independently, and I am sure that the SNP will want

:25:32.:25:35.

to continue to support the independence of the Bank of England

:25:36.:25:40.

against the inflationary tendencies of the honourable gentleman. Mr

:25:41.:25:46.

Speaker, I am pleased to be given the opportunity to once agahn remind

:25:47.:25:50.

the house how this government's long-term economic planners

:25:51.:25:53.

delivering for the working people of the United Kingdom. -- plan is

:25:54.:25:58.

delivering. I am grateful to the Ministdr. Can I

:25:59.:26:04.

bring her back to reality? Reality for my constituents of the ?130

:26:05.:26:07.

working families tax credit cut If that goes ahead next April, it will

:26:08.:26:12.

mean ?58 million taken out of our local economy, for the poordst

:26:13.:26:15.

people in my constituency, three quarters of whom are actually at

:26:16.:26:20.

work. The shooting that is right? Will she commit to reviewing that

:26:21.:26:22.

today? He will have to waits on my right

:26:23.:26:27.

honourable friend the Chancdllor announces his statement next week.

:26:28.:26:31.

But it is precisely because of the difficult decisions we have been

:26:32.:26:37.

prepared to take since 2010 at the country's Connery for his

:26:38.:26:39.

constituents in North Wales is going from strength to strength, `nd the

:26:40.:26:43.

overall UK economy is now 12% larger than it was when we took ovdr from

:26:44.:26:46.

when his party was in government. It is worrying to see that as we reach

:26:47.:26:55.

these, economic waters, somd seem to have forgotten the lessons that the

:26:56.:27:00.

crash of 2008 taught us. Recently, we have seen a resurgence of some

:27:01.:27:03.

familiar but dangerous ideas. First of all, and we headed here today,

:27:04.:27:07.

that the deficit does not rdally matter. That it should not be a

:27:08.:27:12.

priority to rein in unsustahnable public spending. That it is fine to

:27:13.:27:18.

kick difficult decisions down the line. Well, these are the vhews

:27:19.:27:21.

which were put to the British electorate in May, and the

:27:22.:27:25.

electorate rejected them overwhelmingly. They looked at the

:27:26.:27:29.

1000 jobs that the UK econoly had created every day since 2010, they

:27:30.:27:34.

looked at the highest growth figure in the G7 for the last two xears in

:27:35.:27:39.

a row, they looked at rising wages and rising living standards and

:27:40.:27:44.

falling inequality, and thex said, your long-term economic plan is

:27:45.:27:47.

working, so we want you to continue the job. Since the election, we have

:27:48.:27:54.

seen the national debt forecast to fall this year as a share of GDP for

:27:55.:27:59.

the first time in over a decade I give way.

:28:00.:28:04.

Is the minister pleased with the appalling level of productivity in

:28:05.:28:09.

this country under her government? The honourable gentleman knows that

:28:10.:28:13.

productivity has been a long-term issue in the British economx, and I

:28:14.:28:16.

shall talk a little more in detail about our productivity plans in a

:28:17.:28:22.

moment. I give way. Does my honourable friend h`ve

:28:23.:28:27.

anything to associate with the costa renationalisation of the party

:28:28.:28:29.

opposite seems to want to elbark upon? That is the sort of fhgure I

:28:30.:28:32.

have heard recently. Exactly. My honourable friend is

:28:33.:28:36.

exactly right that the bottomless pit of money on the magic money tree

:28:37.:28:39.

has been brought into service quite a lot over recent days, and she is

:28:40.:28:48.

right to say that we should focus instead on the good news in terms of

:28:49.:28:52.

the UK economy, that the employment rate has now reached a record high.

:28:53.:28:59.

Is he going to welcome the fact that the employment rate has reached a

:29:00.:29:03.

record high? I don't think he is. We have seen wages rise by over 3% this

:29:04.:29:10.

year. Is he going to welcomd that? Indeed, for people in continuous and

:29:11.:29:16.

Lyman, wages are over 4%. Order Order. Order. Order. Border. --

:29:17.:29:23.

border. We cannot have honourable mdmbers

:29:24.:29:33.

freelancing, or at least not any more than they already accustomed to

:29:34.:29:37.

doing so. So the honourable gentleman can seek to intervene but

:29:38.:29:41.

it is for the Minister to ddcide whether to respond. If the

:29:42.:29:44.

honourable gentleman claims to have a point of order, and keen to

:29:45.:29:49.

discover as to whether it is a point of order or point of frustr`tion.

:29:50.:29:56.

With the Minister exhibit stch massive ambiguity to say, yds, yes,

:29:57.:30:03.

and then getting up and down, does that not cause great confushon

:30:04.:30:05.

amongst the greater public, would he like to make a ruling on th`t?

:30:06.:30:11.

My ruling on that, for the benefit of the honourable gentleman on the

:30:12.:30:13.

house, is that any member who has the floor should indicate clearly

:30:14.:30:20.

whether he or she is giving way and if so, to whom. Any gesticulation

:30:21.:30:26.

which skewers rather than clarifies, while not disorderly, is unhelpful.

:30:27.:30:32.

-- which obscure is rather than clarifies.

:30:33.:30:34.

I will give way when he starts to welcome some of these posithve

:30:35.:30:38.

economic facts. I have a hunch that, if he does not know whether he

:30:39.:30:41.

is coming and going coming `nd going, he is on the right p`rty

:30:42.:30:46.

So, we absolutely reject thd opposition's accusation that we are

:30:47.:30:49.

failing to deliver for workhng people. Not only have we brought

:30:50.:30:53.

greater economic security, but we have also delivered more and higher

:30:54.:31:00.

wages. That is what people working across this country asked us to

:31:01.:31:03.

deliver, that is what we're doing. I give way.

:31:04.:31:08.

Thank you. They echo and salute the track record results she is talking

:31:09.:31:12.

about. A former Prime Minister credited with reviving a fahling

:31:13.:31:16.

economy once said that the problem with socialism is that eventually,

:31:17.:31:22.

you run out of other people's money. Will my honourable friend agree that

:31:23.:31:26.

what we're hearing from the benches opposite is a reheating a sxmbol

:31:27.:31:29.

1980s socialism, where the results only failure?

:31:30.:31:35.

My honourable friend is absolutely right reminders of two important

:31:36.:31:39.

facts, which are, first of `ll, no Labour government has ever left

:31:40.:31:44.

office leaving a public fin`nce -- the public finances in a better

:31:45.:31:47.

state than when they came into power, nor has any Labour government

:31:48.:31:50.

ever left office without le`ving more people unemployed than they

:31:51.:32:01.

inherited. So, do we agree with the other points the party opposite make

:32:02.:32:05.

in their motion? I'm not giving way at this point. I will make some

:32:06.:32:08.

progress, because I want to take each of the points in the motion in

:32:09.:32:13.

turn will stop first of all, I am delighted to see the party opposite

:32:14.:32:17.

has remembered to mention the deficit in the motion today,

:32:18.:32:20.

although it is not the budgdt deficit, it is the current `ccount

:32:21.:32:24.

deficit they have mentioned. Let me remind the house about the progress

:32:25.:32:28.

of the budget deficit as a share of the economy. It has fallen by more

:32:29.:32:34.

than half from its peak in 2009 10 to 4.9% at the end of last xear We

:32:35.:32:39.

forecast that we will be in surplus by the end of this Parliament. That

:32:40.:32:42.

is what the British people `sk for, and that is what we're doing. Is he

:32:43.:32:47.

going to welcome the progress on the deficit and suggests progress?

:32:48.:32:57.

Can I just ask, a serious point in all of this silliness, sincd the end

:32:58.:33:01.

of World War II, this country has only been in surplus for 12

:33:02.:33:05.

financial years. Of those 12, ten have had Labour governments.

:33:06.:33:08.

Conservative governments have hardly ever run surpluses. Is she really

:33:09.:33:12.

telling us the governments of Thatcher, McMillan, Anthony Eden,

:33:13.:33:17.

Churchill, were all spent at governments, or will soon bd a

:33:18.:33:19.

little more serious when addressing these issues?

:33:20.:33:22.

He's right this is a serious issue. I hope he is one of the mord

:33:23.:33:26.

moderate and sense of members of his party and will be able to convince

:33:27.:33:29.

his front bench that this is an important issue for them to tackle.

:33:30.:33:36.

The opposition also mention tax credits. I give way.

:33:37.:33:44.

You touched on unemployment, but is it not a paradox that we ard looking

:33:45.:33:48.

at closing HMRC offices and reducing the number of people working for

:33:49.:33:53.

HMIC? At their official figtres show a 34 billion and France. So if they

:33:54.:33:57.

elected that money, it would go a long way to eating the deficit.

:33:58.:34:01.

Scrap Trident, scrap the other place, and we are nearly thdre. We

:34:02.:34:08.

don't need to make cuts. Well, I would listen more to the

:34:09.:34:11.

advice of the Scottish National Party on the economy if thex had not

:34:12.:34:15.

projected that the oil pricd would remain over $100 forever, and that

:34:16.:34:19.

was the basis on which they fought last year's referendum. Varhous

:34:20.:34:26.

honourable members have mention tax credits. I will make some progress

:34:27.:34:30.

on tax credits, which a lot of people have mentioned. The British

:34:31.:34:35.

people want to see a lower welfare, lower tax, high wage economx. That

:34:36.:34:39.

is what they voted for in M`y. In the summer budget, we set ott a

:34:40.:34:42.

package of reforms for workhng people, which included the reform of

:34:43.:34:47.

the new national living wagd, continued increases in the personal

:34:48.:34:51.

allowance, and the doubling of free childcare with up to ?5,000 per year

:34:52.:34:57.

for working parents. Of course, we will listen to the concerns raised

:34:58.:35:00.

about the transition period, and my right honourable friend the

:35:01.:35:03.

Chancellor will set out our response to these concerns next week. Make no

:35:04.:35:09.

mistake, creating a lower wdlfare, low tax, high wage economy hs one of

:35:10.:35:13.

the most progressive goals ` government can achieve, and one that

:35:14.:35:18.

we will continue working towards. I give way. I am very grateful.

:35:19.:35:23.

As she analyses the opposithon to decide whether she wants to support

:35:24.:35:26.

it or not, I think it is fahrly clear on that one. Isn't shd

:35:27.:35:31.

surprised, as I am, that it does not mention the new national living

:35:32.:35:35.

wage? This is probably the lost significant change in our economy

:35:36.:35:39.

over the next five years. There are issues about tax credits, btt the

:35:40.:35:43.

fundamental point about this is that we are going to ask companids to pay

:35:44.:35:48.

out poorest paid workers wh`t is effectively a 38% increase hn their

:35:49.:35:52.

3% of their pensions. Do yot not 3% of their pensions. Do yot not

:35:53.:35:56.

feel that needs more attenthon from both sides of the house?

:35:57.:36:00.

He is absolutely right to hhghlight that very progressive move, and it

:36:01.:36:06.

gives me a chance to emphashse the fact that yesterday's data on

:36:07.:36:09.

earnings showed that the lowest earning 10% in our society saw a

:36:10.:36:14.

wage increase of over 3%, 3.4% over the last 12 months, and that is

:36:15.:36:18.

before this change has even taken place. The opposition motion also

:36:19.:36:21.

mentioned child poverty, Mr Speaker, and the best route out of child

:36:22.:36:29.

poverty is for a parent or parents to work. On our watch, the number of

:36:30.:36:33.

children growing up in workless families is a record low, down

:36:34.:36:38.

almost half a million from 06.2 of all children to 11.8% of all

:36:39.:36:42.

children. The honourable lady has been trying for a while.

:36:43.:36:46.

I thank her for giving way. Is she aware that since 2010, 5000 Jordan

:36:47.:36:51.

have gone below the poverty line -- 500,000 children, and what do she

:36:52.:36:55.

intend to do about that? She is wrong on that. Since 201 , in

:36:56.:37:02.

terms of relative poverty, there are actually 300,000 fewer children

:37:03.:37:06.

living in poverty, and the government losing control of public

:37:07.:37:12.

finances and there are -- them not being able to do anything about it

:37:13.:37:16.

would be the worst thing th`t could possibly happen to the opportunities

:37:17.:37:19.

of those children, because the people who suffer when the country

:37:20.:37:23.

loses control of its public finances are indeed the low paid and the

:37:24.:37:26.

people who get turned out of work other ones who suffer the most.

:37:27.:37:31.

May I just say to the house that it is reasonable for the Minister to be

:37:32.:37:36.

given the opportunity to respond to one intervention before immddiately

:37:37.:37:41.

being pressed to axe at another -- to accept another, so some

:37:42.:37:47.

orderliness and the conduct of this debate needs now to be restored with

:37:48.:37:54.

the agreement of all parties. In that spirit, I will try and make

:37:55.:37:58.

some progress in terms of mx comments on this motion.

:37:59.:38:00.

They are really to say that the richest in this country are not the

:38:01.:38:04.

ones who sever most when thd economy suffers the most.

:38:05.:38:06.

It is not the trade union b`rons who lose their jobs that happens, it is

:38:07.:38:11.

the poorest in this country, and we are making sure that never happens

:38:12.:38:16.

again. The motion on the paper today also mentions the impact of our

:38:17.:38:21.

policies on women. Let me ghve a few facts and that as well. There are

:38:22.:38:25.

now more women in this country working than ever before, and the

:38:26.:38:28.

gender pay gap is at its lowest level since records began. The 6%

:38:29.:38:36.

of people taken out of incole tax altogether are winning, by raising

:38:37.:38:40.

the personal allowance, -- `re winning. 58% of the people now

:38:41.:38:50.

receiving a much stronger triple lock state pension are w. Almost two

:38:51.:38:57.

thirds of the people benefiting from the introduction of the nathonal

:38:58.:39:02.

living wage are women. In f`ct, since 2010, women in the UK have

:39:03.:39:05.

moved into jobs faster than in any other G7 country. Women's elployment

:39:06.:39:12.

rate has increased more since 2 10 than in the three previous

:39:13.:39:15.

parliaments combined, and wd live in hope, and I imagine the honourable

:39:16.:39:20.

lady might be about to commdnt on this, but Whelan and Herbert The

:39:21.:39:23.

Right Honourable member for Camberwell and Peckham's wished that

:39:24.:39:26.

the senior jobs in her own party will go to women will be gr`nted

:39:27.:39:29.

soon. Does she want to welcome some of this?

:39:30.:39:34.

I think if the giving way. Will she share with me the real concdrn that

:39:35.:39:39.

women in fact, 29% of women earn less than the living wage, `nd this

:39:40.:39:44.

is not a success story full women, far from it? And that is ex`ctly my

:39:45.:39:48.

point. They will be disproportionately

:39:49.:39:50.

helped by the fact that we `re increasing the minimum wage with the

:39:51.:39:57.

national living wage from ndxt year. The motion today mentions

:39:58.:40:01.

productivity, and it was rahsed earlier by the honourable gdntleman

:40:02.:40:04.

who is no longer in his place. This has in fact been a long-standing

:40:05.:40:09.

issue since well before 2010, and we accept that, but rather than just

:40:10.:40:13.

grandstanding, we have actu`lly set out a wide-ranging productivity

:40:14.:40:13.

plan. We have setup the National

:40:14.:40:26.

Infrastructure Commission to take a long term depoliticised approach to

:40:27.:40:33.

long-term projects. We have seen a strengthening in productivity

:40:34.:40:33.

growth. Output in the last puarter growth. Output in the last puarter

:40:34.:40:39.

rose by 0.9% and the Office for Budget Responsibility are

:40:40.:40:42.

forecasting that productivity will pick up next year by 2.4% in the

:40:43.:40:48.

year after. . The opposition also year after. . The opposition also

:40:49.:40:53.

questions our long-term comlitment to science, technology and green

:40:54.:41:00.

growth. Would she accept th`t the freezing in cash terms of money

:41:01.:41:06.

spent on science and research and development actually has had an

:41:07.:41:12.

impact on productivity growth and the potential for increasing

:41:13.:41:16.

productivity in the UK economy? We do agree that maintaining the

:41:17.:41:21.

science budget is incrediblx important. As part of the ?000

:41:22.:41:26.

billion of infrastructure investment, ?6.9 billion of that

:41:27.:41:30.

will go towards research infrastructure. If the minister

:41:31.:41:40.

believes what she has just said about maintaining the science

:41:41.:41:45.

budget, why over the last fhve years was she and her colleagues part of a

:41:46.:41:50.

government that cut in real terms by 10% and have made no commitlent that

:41:51.:41:55.

far to increase the science budget, to such an extent that the TK is

:41:56.:42:01.

bottom of the G8 in investmdnt in science? He will know and hd has

:42:02.:42:06.

just reiterated that we havd maintained the science budgdt. It

:42:07.:42:11.

has been one of the choices we have made in terms of that budget. In

:42:12.:42:19.

terms of green projects, we have secured ?7 billion of investment per

:42:20.:42:23.

year for UK based renewable projects, we are investing hn major

:42:24.:42:31.

research facilities such as the new touring Institute, and our science

:42:32.:42:36.

and innovation strategy sets out our long-term vision for the

:42:37.:42:42.

contribution to national prosperity. With the honourable member welcome

:42:43.:42:47.

the comments of the President of the Royal Society who said recently that

:42:48.:42:51.

the UK is excellent on the world stage. In terms of effectivd

:42:52.:42:56.

research, we are probably top around the world. Most people rank is

:42:57.:43:01.

second to the United States, where we lose out on size. She is right to

:43:02.:43:08.

highlight the effectiveness of our science spending. I mentiondd the

:43:09.:43:14.

Institute. In my constituency, we have fantastic skills in terms of

:43:15.:43:19.

cyber security. These are all very important. Doesn't she accept the

:43:20.:43:30.

problem is the contradiction nature of government policy?

:43:31.:43:40.

Simultaneously, they are strangling the digital industries by their

:43:41.:43:45.

immigration policy which denies Tia two skilled workers and

:43:46.:43:52.

entrepreneurial visas. I welcome the opportunity to clarify therd is no

:43:53.:43:56.

cap in terms of intercompanx transfers or people who will earn a

:43:57.:44:02.

substantial amount of money. I am aware that Texas city keep close

:44:03.:44:09.

tabs on this and then me about the importance of this and he whll

:44:10.:44:16.

welcome their continued success in attracting investment from `ll

:44:17.:44:22.

around the world. The motion also mentions the Business, Innovation

:44:23.:44:24.

and Skills budget and I can't pre-empt what the Chancellor will

:44:25.:44:29.

say next week but every single decision on spending has bedn based

:44:30.:44:34.

on our productivity plan to focus on world beating productivity, to drive

:44:35.:44:39.

the next phase of our growth and to raise living standards. Nevdr under

:44:40.:44:42.

estimate this government's commitment to help British

:44:43.:44:45.

businesses and workers succded in the global economy. We know

:44:46.:44:50.

businesses drive growth and create jobs and we work with them so they

:44:51.:44:55.

continue to do that. In marked contrast, last week, the Labour

:44:56.:45:00.

Party could not get a singld business to even host an evdnt with

:45:01.:45:06.

their leader! If the economx perfect? No economy is ever perfect.

:45:07.:45:12.

We need to export more, work more productively and eliminate the

:45:13.:45:16.

gender pay gap altogether. Ht takes time for a country to recovdr from a

:45:17.:45:20.

significant economic crash such as that inflicted on us by the last

:45:21.:45:25.

Labour government. But thanks to the hard work of the British people the

:45:26.:45:30.

economy has recovered. We h`ve more growth, jobs, higher wages, there is

:45:31.:45:40.

more to do but there is no dconomic security, there is no national

:45:41.:45:43.

security and no opportunity when you lose control of your public

:45:44.:45:47.

finances. I urge honourable members to reject the economic views of the

:45:48.:45:52.

party opposite, reject the `dvice of the Shadow Chancellor and rdject the

:45:53.:45:55.

motion on the order paper bdfore us today. Can I start by agreehng with

:45:56.:46:10.

these Shadow Chancellor? He said cost should be no obstacle hn

:46:11.:46:15.

providing the necessary sectrity and intelligence to protect people from

:46:16.:46:18.

the threats which we are now seeing in which we saw in Paris. If the

:46:19.:46:26.

government wished to increase spending in these areas, thdre will

:46:27.:46:31.

be no resistance from the SNP. However, I also agreed with her when

:46:32.:46:37.

she said we need to cut out unnecessary and wasteful spdnding.

:46:38.:46:41.

That is absolutely right. No one would say we need to spend loney on

:46:42.:46:46.

things we don't need. So we will offer up a starter for ten, which is

:46:47.:46:53.

?167 billion on Trident and its replacement. In terms of thhs

:46:54.:46:59.

resolution... This motion today and we will back it, there is no doubt

:47:00.:47:04.

that this Tory government and its coalition predecessor have failed

:47:05.:47:07.

and we have seen the evidence of that which I will come to. We have

:47:08.:47:13.

an austerity programme from an austerity government which has

:47:14.:47:16.

failed to deliver the growth, economy, needs and is inste`d

:47:17.:47:20.

committed to making precisely the same mistakes all over again. We

:47:21.:47:31.

should remember that what the Chancellor promised when he became

:47:32.:47:35.

Chancellor in 2010. He said that would fall as they share of GDP by

:47:36.:47:42.

1415, the current accounts would be in balance, public sector ndt

:47:43.:47:51.

borrowing would be ?20 billhon. We know now that debt would not and did

:47:52.:47:56.

not fall, the current account will still not be back in the bl`ck until

:47:57.:48:01.

1718 at the earliest and public sector net borrowing is bardly the

:48:02.:48:10.

?20 billion promised. The kdy point is that the Chancellor faildd to

:48:11.:48:14.

meet every single one of thd targets he set for himself. That is a

:48:15.:48:30.

failure. The man, woman and a spoken on this book five months ago. They

:48:31.:48:33.

want to have mocked the samd, they want the deficit to brought down, we

:48:34.:48:38.

have halved the deficit dond so while maintaining one of thd best

:48:39.:48:41.

levels of growth in any country the G-7. Growth was strangled throughout

:48:42.:48:50.

the early part of the recovdry in the last Parliament. If it has

:48:51.:48:58.

picked up since, it says more about the weakness of our inheritors. The

:48:59.:49:06.

Tory plan has actually faildd. I talk about strangling recovdry. This

:49:07.:49:14.

is an austerity programme which saw rises and cuts, in the last

:49:15.:49:19.

Parliament, which precisely strangled the recovery and with an

:49:20.:49:26.

extra ?37 billion to come, we are now on track for a full dec`de of

:49:27.:49:34.

austerity. But it's worse than that. With the government changing the

:49:35.:49:39.

ratio of tax rises to carts, we have the clearest indication not simply a

:49:40.:49:44.

failure but a failure delivdred by trying to balance the books in a way

:49:45.:49:50.

which was never going to succeed. That is a situation which whll only

:49:51.:49:55.

get worse as the motion looks to the changes to tax credits. Does he not

:49:56.:50:01.

think the creation of 2 million jobs is a success? I think the creation

:50:02.:50:08.

of every job is welcome for the person who gets it. The cre`tion of

:50:09.:50:13.

well-paid permanent secure jobs as fantastic as they provide not only

:50:14.:50:18.

the income families need but the security that build strong `nd

:50:19.:50:23.

stable communities for the future. So of course I welcome jobs as they

:50:24.:50:27.

are created but we need to look every single part of the economy,

:50:28.:50:34.

simply single metrics, whether they are good or bad. The governlent s

:50:35.:50:40.

record is lamentable. I talked about the plan to cut tax credits. While

:50:41.:50:46.

there may be changes announced next week, few believe the stubborn

:50:47.:50:51.

Chancellor and his government will actually strayed too far from the

:50:52.:50:57.

plans he originally announcdd. Those plans have a horrendous imp`ct on

:50:58.:51:01.

households in Scotland and the UK. For many real people, real families

:51:02.:51:08.

in real communities, the erosion of household income is extraordinary.

:51:09.:51:13.

The average figure of ?1200 a year, ?100 a month, is routinely tsed

:51:14.:51:18.

That is accurate but for sole households, the annual loss is

:51:19.:51:24.

?4000. The Tories may find this funny but that would imply `

:51:25.:51:32.

marginal tax rate of 90% on some of the poorest working households in

:51:33.:51:37.

the country. If that was wh`t they were proposing, the backbenches

:51:38.:51:41.

would be up in arms but bec`use this is taking what they see to be

:51:42.:51:45.

benefits from poor people, ht is suddenly OK because that is the way

:51:46.:51:52.

the smirking Tories always think. Would he agree with me that part of

:51:53.:51:59.

the problem with the credit cuts is that they are concentrated hn

:52:00.:52:03.

certain areas? You have the double effect on the local economy and you

:52:04.:52:10.

are multiplying the effect of poverty. I think the scenarho where

:52:11.:52:20.

pockets of poverty and commtnities have been more reliant on t`x

:52:21.:52:22.

credits or other benefits as well-known and of course thdy will

:52:23.:52:26.

suffer disproportionately when this sort of cut is made. Absolutely

:52:27.:52:34.

right. It's an argument for not simply an economic policy btt some

:52:35.:52:38.

form of regional industrial strategy which delivers not just any old job

:52:39.:52:43.

but good jobs to every part of the country. It is the real failure of

:52:44.:52:49.

this government's so-called long-term economic plan an `bsence

:52:50.:52:56.

of any real strategy to delhver inclusive growth which concdrns me.

:52:57.:53:08.

Inclusive growth which to the SNP is essential to deliver the ovdrall

:53:09.:53:13.

economic growth we need. Thd UK lost 9% of GDP growth between 1980 and

:53:14.:53:19.

2010 due to rising inequality so for us to see the same mistake lade all

:53:20.:53:25.

over again is unforgivable. But let's look at the big picture. In

:53:26.:53:35.

the Chancellor's own words, we don't export, save, manufacture or save

:53:36.:53:42.

enough. Far too much of our economic activity is concentrated in the

:53:43.:53:46.

centre of London. He also wdnt on to say at the Mansion house spdech that

:53:47.:53:50.

we will tackle each and every one of these weaknesses with the s`me

:53:51.:53:55.

determination to tackle the deficit. I will draw the whole government

:53:56.:54:01.

effort together in a single plan for productivity. The problem is, an

:54:02.:54:08.

essential prerequisite for productivity, very little h`s been

:54:09.:54:17.

done. Even on a GDP per worker basis, it's still not competitive

:54:18.:54:25.

and the position in Scotland is similar. We should both be doing so

:54:26.:54:31.

much better than that. So the focus should be on productivity,

:54:32.:54:37.

innovation, internationalis`tion, investment, infrastructure `nd

:54:38.:54:41.

skills and inclusive growth and the minister did talk about invdstment

:54:42.:54:45.

infrastructure but I will come back to that because I am not sure if her

:54:46.:54:50.

version of the world matches up to reality or indeed what was `nnounced

:54:51.:54:59.

in the summer budget. On innovation, the 2014 budget increase thd amount

:55:00.:55:05.

available for tax credits btt the UK Government simultaneously rdduced

:55:06.:55:09.

the qualifying expenditure. When we get to exports, and I am gl`d that

:55:10.:55:16.

is back on the agenda, the deficit for 2014 for trading goods was 124

:55:17.:55:25.

billion. The deficit on the current account was ?93 billion, up from ?77

:55:26.:55:31.

billion the year before. Thdse numbers are all going in thd wrong

:55:32.:55:37.

direction. The contribution to GDP is negative for the entire forecast

:55:38.:55:42.

period in the last Redbook. The entire period of this Parli`ment's

:55:43.:55:48.

contribution to GDP is negative for net trade in every single ydar so

:55:49.:55:53.

where is the plan to actually encourage innovation, support more

:55:54.:55:58.

companies to export and acttally drive up productivity?

:55:59.:56:03.

we know productivity requirds investment, and we needed a

:56:04.:56:09.

particularly in infrastructtre, vital for the future, and the

:56:10.:56:15.

secretary is right. The Chancellor and government have announcdd yet

:56:16.:56:18.

another review, but in terms of cold, hard cash, capital expenditure

:56:19.:56:24.

forecasts were down for every single year in this Parliament between the

:56:25.:56:31.

spring budget and the summer budget. That is not the way, if one

:56:32.:56:36.

is serious, if any government is serious, about infrastructure for

:56:37.:56:39.

the future. It is also vital when talk about investment to grow the

:56:40.:56:43.

economy that we include invdstments in education, and that will be the

:56:44.:56:46.

subject of the second debatd today. But can I put on record, because it

:56:47.:56:52.

is important in this regard, in our view, the approach to education by

:56:53.:56:55.

the Tories in England runs contrary to the investment approach needed.

:56:56.:57:01.

May I also put on record in context my pride at what the Scottish

:57:02.:57:04.

Government have done, which is better school results, a record 119

:57:05.:57:11.

full-time college places, a record 33,000 young Scots going to

:57:12.:57:15.

university, a move towards 30,0 0 apprenticeships every year, and more

:57:16.:57:19.

children than ever from poorer backgrounds going on to further and

:57:20.:57:27.

higher education. This is the investment in education which will

:57:28.:57:29.

deliver the economic growth of the deliver the economic growth of the

:57:30.:57:32.

future, and if the minister wants to chapter, I will happily takd an

:57:33.:57:36.

intervention. If he wants to defend his government in England. Not

:57:37.:57:44.

listening. Is motion also talks about green

:57:45.:57:49.

jobs, and there is much to commend the approach of support to the green

:57:50.:57:53.

economy and investment in it, because of the export potential

:57:54.:58:00.

which goes with those jobs. But like so much else, the Tory failure

:58:01.:58:04.

on the economy has been replicated in its approach to the green

:58:05.:58:07.

economy. We saw that with ddcisions on onshore wind farms, with the

:58:08.:58:13.

calculation of renewable strike price, with the shorter contract

:58:14.:58:19.

length, all of which polled and sucked investment from that

:58:20.:58:22.

important industry. When we have seen it from the failure of

:58:23.:58:25.

successive UK governments to address the inequity of connectivitx charges

:58:26.:58:30.

to the grade over many years. Any real economic plan should correct

:58:31.:58:37.

the imbalance of ?25 kilowatt charge to connect to the grade in the North

:58:38.:58:44.

of Scotland against a ?5 20 subsidy in London, to allow the invdstment

:58:45.:58:50.

where maximum opportunity actually exists. -- connect to the grid.

:58:51.:58:55.

Indeed, the International Energy Agency has suggested that the

:58:56.:58:58.

stop-go political support rdnewables is detrimental to establishhng a

:58:59.:59:03.

more secure energy system, `nd that governments must remove the question

:59:04.:59:10.

marks over that. The UN chidf environmental scientist highlighted

:59:11.:59:13.

the damage the UK Government's reckless regressive and irr`tional

:59:14.:59:22.

cuts are doing to the renew`ble sector. I will give way. Dods he

:59:23.:59:27.

agree with the CBI, which agreed that in a recent all-party leeting

:59:28.:59:32.

the government 's policy on the solar industry has severely affected

:59:33.:59:36.

investor confidence? I thought it was quite tellhng that

:59:37.:59:39.

when the announcement was m`de in this place on the change to the

:59:40.:59:44.

onshore wind farms, to remove any support for those which had not

:59:45.:59:48.

passed every single hurdle hn the place, the Tory backbenchers were on

:59:49.:59:53.

their feet by the end of th`t statement, already making the first

:59:54.:59:56.

attack of the soul are sackdd as well. So yes, I agree with her. --

:59:57.:00:04.

the solar sector. Does he not see some contradiction between some of

:00:05.:00:06.

the comments made by his own party colleagues last week, when we were

:00:07.:00:12.

discussing the decline in the steel industry and high energy prhces and

:00:13.:00:15.

his support for renewables? And does he not accept that in

:00:16.:00:20.

Spain, for every one job crdated in the renewables industry, 2.2 jobs

:00:21.:00:25.

are lost in traditional indtstries? I have heard that argument before. I

:00:26.:00:28.

am not sure of its efficacy, and I will not comment on it, but the

:00:29.:00:34.

substantive point is, there is no contradiction at all between a

:00:35.:00:36.

general attempt to decarbonhse, which is the right thing to do, and

:00:37.:00:44.

a clear recognition of the costs of high energy using industries which

:00:45.:00:47.

are of strategic importance. There is no contradiction there

:00:48.:00:51.

whatsoever. There is, howevdr, one final point on the failure of the UK

:00:52.:00:54.

Government is management of the economy. That was last week's HMRC

:00:55.:01:02.

closures announcement. If the UK Government is serious about clamping

:01:03.:01:06.

down on avoidance, evasion, fraud and even error, if they are serious

:01:07.:01:14.

about reducing the 16.5 billion tax gap from AME is, if they ard

:01:15.:01:21.

registered in reducing the gap from income and capital gains tax, if

:01:22.:01:24.

they are serious about maxilising tax yield for investment, closing

:01:25.:01:30.

137 HMRC officers, including almost everyone in Scotland, is a

:01:31.:01:32.

catastrophic mistake. I will give way. I will draw his attenthon to

:01:33.:01:37.

the Public Accounts Committde report which said that HMRC are answering

:01:38.:01:43.

less than 15% of the call bttton to them. He will know that the biggest

:01:44.:01:46.

frustration for businesses hs that they can get on the phone to HMRC.

:01:47.:01:51.

This is a real problem for small, medium and large sized businesses.

:01:52.:01:54.

Will he get those cuts as wdll as I do?

:01:55.:01:58.

Absolutely. That point is extremely well made. Most individuals and

:01:59.:02:02.

businesses want to be honest. They want to pay their tax. They want to

:02:03.:02:05.

go into a counter, face-to-face make sure everything is absolutely

:02:06.:02:10.

as it should be, pay the bill will stop if less than half the calls are

:02:11.:02:13.

being answered now, it will get worse. When given in Scotland, there

:02:14.:02:16.

will be no face-to-face point of contact north of Edinburgh, Dundee,

:02:17.:02:23.

Aberdeen, Inverness, the whole of the Highlands, south of Edinburgh

:02:24.:02:28.

and Glasgow, the whole of the borders, this is an idiotic and

:02:29.:02:31.

counter-productive thing to do. So what are these plans all about? It

:02:32.:02:40.

is ideological to insist th`t the Chancellor -- as the Chancellor has

:02:41.:02:43.

done that the economy does not break even, but runs a surplus bike

:02:44.:02:48.

2019-20, and it is economic we foolish. To do that by delivering

:02:49.:02:55.

additional welfare cuts tot`lling 33 billion in this Parliament `longside

:02:56.:02:58.

5 billion of cuts to essenthal capital investment, announcdd in the

:02:59.:03:06.

summer budget, is frankly vindictive, nasty and

:03:07.:03:10.

counter-productive. In short, to cut 40 billion more than is necdssary to

:03:11.:03:16.

run a balanced current budgdt, almost all of it paid for bx

:03:17.:03:19.

punishing the poorest of stripping the capital budget of ?5 billion, is

:03:20.:03:24.

a policy we reject, and it hs one scene already fail, and it hs most

:03:25.:03:27.

certainly not one that the people in Scotland voted for.

:03:28.:03:33.

Before I call the honourabld member to speak, I will impose a

:03:34.:03:37.

five-minute limit on speechds to start with. That may have to come

:03:38.:03:40.

down if there are too many interventions, but in order to get

:03:41.:03:43.

all honourable members in, ht will be five minutes from now.

:03:44.:03:49.

Thank you. The core message in this notion that the government hs

:03:50.:03:54.

somehow fail to stand up for working people -- has somehow failed.

:03:55.:03:59.

Respectively, that is misconceived. It is misconceived because, if we

:04:00.:04:03.

look at the context, the position in 2010 as we recall it is that this

:04:04.:04:08.

country was staring into thd abyss. Make no mistake about it. Borrowing

:04:09.:04:13.

was over ?150 billion a year. What does that mean in concrete terms? We

:04:14.:04:17.

were bringing in something like 600 million, yet spending 750 bhllion.

:04:18.:04:23.

It is perfectly true to say that the crisis came, and therefore the

:04:24.:04:27.

deficit got larger, but don't forget this - on the eve of the crhsis the

:04:28.:04:35.

IFS indicated, we as a country had one of the largest structur`l

:04:36.:04:37.

deficits anywhere in the developed world, which made us vulner`ble and

:04:38.:04:42.

meant that when the crisis hit, the cupboard was bare. A point that has

:04:43.:04:46.

been made but there's reanalysis is that there is no economic sdcurity,

:04:47.:04:50.

there is no national security, and there is no opportunity, whdn you

:04:51.:04:53.

lose control of your public finances. This country, by the

:04:54.:04:57.

deputy speaker, did that spectacularly in 2010. But dven if

:04:58.:05:02.

the honourable gentleman is not interested in those figures, the

:05:03.:05:09.

truth is that unemployment was up. Unemployment, which impacts on

:05:10.:05:13.

working people's lives, unelployment was up, and youth unemploymdnt was

:05:14.:05:17.

up. So what has happened since then, in the period which the

:05:18.:05:20.

honourable gentleman would have us believe that this economy h`s gone

:05:21.:05:26.

to hell in a handcart? Well, last year, more jobs created in Xorkshire

:05:27.:05:30.

alone than in the whole of France. More jobs created for young people

:05:31.:05:33.

in this country than in the rest of the European Union but together --

:05:34.:05:40.

put together. More women to jobs than ever before. So since 2010

:05:41.:05:46.

2000 jobs per day, and that matters, Madame deputy speaker, becatse jobs

:05:47.:05:50.

bring dignity, they bring sdlf worth, they bring fulfilment. But if

:05:51.:05:55.

he is not adjusted even in jobs what about living standards? Well,

:05:56.:06:04.

living standards are up ?900 per household better off than w`s the

:06:05.:06:08.

position in 2010. And yet, there is also a suggestion that somehow, our

:06:09.:06:14.

growth is anaemic compared to other countries. How can that possibly be

:06:15.:06:19.

the case? It is recognised that our country was the joint fastest

:06:20.:06:23.

growing country of any major developed economy, together with the

:06:24.:06:27.

United States. This is an achievement which we hope across the

:06:28.:06:32.

house can be very proud, and we can be proud because, it is by getting

:06:33.:06:37.

their stability, that growth, that prosperity, that we in fact assist

:06:38.:06:44.

the most vulnerable in our safety. But we recognise, of course, that

:06:45.:06:47.

there is more to do, and whdn the gentleman makes the point, `s he is

:06:48.:06:52.

perfectly entitled, that thd deficit is not closed, the answer to that

:06:53.:06:55.

should not be, let's widen ht and make it bigger. The answer should

:06:56.:07:00.

be, what can we do in a constructive, sensible and dare I

:07:01.:07:03.

say it, P to quake, to close that deficit, to secure our resilience.

:07:04.:07:11.

-- patriotic way. Because if we don't have money aside for ` rainy

:07:12.:07:15.

day, we will not be any good position to weather the storm when

:07:16.:07:18.

it hits, as it will. There will be a time in the when there will be a

:07:19.:07:26.

global downturn, because th`t is the nature of events. But we must be

:07:27.:07:29.

prepared to weather it. And then sorry to say, if there are `ny

:07:30.:07:35.

policies of the honourable gentleman, they seem to takd is

:07:36.:07:39.

nowhere towards achieving that resilience. So the position is today

:07:40.:07:42.

that we have a deficit of something in the order of 70 billion. That is

:07:43.:07:47.

around about double the defdnce budget. But I hear from the

:07:48.:07:54.

opposition benches, on the one hand, that the deficit is too large, and

:07:55.:07:57.

at the other hand, they say, well, let's make it largest deal. I will

:07:58.:08:05.

give way. -- larger still. H thank him for giving way, and I echo the

:08:06.:08:10.

sentiment that he is making. The only way we can get to grips with

:08:11.:08:13.

debt is to tackle the deficht, as he is setting out. The text of the

:08:14.:08:16.

difficult decisions of this government, we have already cut that

:08:17.:08:20.

by more than half. Does my honourable friend agree with me that

:08:21.:08:24.

there is still more to do, but that is why we have to carry on with the

:08:25.:08:28.

plan and finish the job? I absolutely agree with what is

:08:29.:08:31.

being said. We have to carrx on in a way which is proportionate, of

:08:32.:08:36.

course, fair, of course, but ultimately, focuses on that prize,

:08:37.:08:41.

which is living within our leans. I'm sorry to say, the party opposite

:08:42.:08:45.

don't seem to be ready to approach it in those terms. Not least because

:08:46.:08:51.

the Labour Party oppose the cap on welfare. The honourable gentleman

:08:52.:08:55.

sat in an article in the New Statesman in March that he would

:08:56.:08:59.

avoid any cuts whatsoever, `nd as we have a ready hair today, vidwed the

:09:00.:09:05.

surplus is being Barbie. My view is that this is not just an issue for

:09:06.:09:09.

our times. It is an issue for future times, an issue of generational

:09:10.:09:12.

justice. We collect to the next generation to bequeath to them and

:09:13.:09:17.

economy that can pay its wax, because make no mistake, thdre is

:09:18.:09:21.

someone born this week who hn 3 years, say a young lady, will turn

:09:22.:09:26.

to the state, having been ttrfed out to her home by an abusive htsband,

:09:27.:09:30.

she will knock on the Dora the state and ask for help, and it is down to

:09:31.:09:33.

this generation to insure that we have not left the cupboard bare

:09:34.:09:38.

because what is she to say to us in 30 years? Why didn't you de`l with

:09:39.:09:42.

the problem then? If we had to say, it is all too difficult, th`t is no

:09:43.:09:47.

answer at all. So, the position is that this prospective motion is

:09:48.:09:55.

misconceived, lacks credibility we have a duty to our country `nd the

:09:56.:09:58.

future to have a stable economy and this motion should be rejected.

:09:59.:10:04.

I will start by responding to the comments about the deficit. Let s

:10:05.:10:16.

judge them by their own record. In 2010, the Chancellor said hd would

:10:17.:10:22.

get rid of the deficit in one term. That rapidly disappeared as they

:10:23.:10:27.

target. He said he would halve it in one term and that was clearly shown

:10:28.:10:35.

to have failed. Then he movdd the target to 2019 and then 2020. When

:10:36.:10:39.

it suits him, the Chancellor changes his mind as much as he can on the

:10:40.:10:45.

deficit. It is not as important as members opposite claim. Surdly he

:10:46.:10:53.

welcomes the flexibility of the Chancellor who is asking to show

:10:54.:10:57.

flexibility? He makes certahnly stays on course. Halving thd deficit

:10:58.:11:05.

dosser and a measured an wax. Of course we need to get rid of the

:11:06.:11:09.

deficit so we can bring down debt but you have to do it in a way that

:11:10.:11:16.

is sustainable and that can only happen by growing the econoly. The

:11:17.:11:21.

government has presided over the slowest recovery on record. Tax

:11:22.:11:27.

receipts are an indicator of the health and productivity... There is

:11:28.:11:30.

a conversation going on across the two frontbenchers while there is a

:11:31.:11:33.

member speaking. Let's listdn to him. The government has presided

:11:34.:11:39.

over the slowest recovery on record. Tax receipts are an indicator of the

:11:40.:11:44.

health and productivity of the economy. Those fell as a result of

:11:45.:11:49.

the financial crisis. The United States, Germany, France and Canada,

:11:50.:11:56.

those receipts are covered by 2 13 to precrisis levels while in the UK

:11:57.:12:03.

tax receipts remained a 15% below the precrisis level. Meanwhhle, the

:12:04.:12:07.

Tories claimed the financial crisis was a result of public spending

:12:08.:12:14.

recruiting nurses and doctors when in fact spending here was bdlow

:12:15.:12:19.

average for similar economids. It was a financial crisis is not

:12:20.:12:23.

government spending that catsed the crisis and the fact the current

:12:24.:12:27.

Chancellor supported Labour's spending plans says what is needed

:12:28.:12:30.

to be said about the claims made ever since. They knew on thd benches

:12:31.:12:37.

on the government's side th`t the crisis was financial and not a

:12:38.:12:40.

government one and Conservative MPs also note that the member for Tatton

:12:41.:12:43.

was calling for less regulation of the banks not more in the rtn-up to

:12:44.:12:48.

that same crisis. The fact of the matter is that in 2010, we had

:12:49.:12:53.

halved the levels of unemployment, half the level of home repossessions

:12:54.:13:00.

and half the level of bigness bankruptcy. -- business. Prdcisely

:13:01.:13:04.

because the Labour government did intervene to support and protect

:13:05.:13:09.

people and businesses and to protect jobs. The economy was recovdring

:13:10.:13:14.

strongly in 2010. That was `s a result of the stimulus put hn by the

:13:15.:13:19.

government and it came to a court with the emergency budget of 20 0

:13:20.:13:25.

when investment. Two. In 2000, other countries continued their stimulus

:13:26.:13:30.

package and business, jobs `nd the wider economies of those cotntries

:13:31.:13:35.

saw the benefits. So what should happen now? Let's look at what

:13:36.:13:41.

business say. They want to see investment in infrastructurd,

:13:42.:13:45.

energy, transport, broadband and especially in skills. They say they

:13:46.:13:50.

need the skills available so businesses can grow and pay good

:13:51.:13:55.

wages. This is what the CBI says, it is what the EDF says and wh`t the

:13:56.:14:00.

Federation of Small Businesses say. When businesses want to grow, they

:14:01.:14:05.

understand the need to invest in new equipment, property and skills. They

:14:06.:14:10.

develop a business plan and invest in capital. Households do something

:14:11.:14:15.

similar, whether through sttdent loans or borrowing money. They

:14:16.:14:22.

invest for the future. We t`ke up a mortgage over 25 years typically the

:14:23.:14:26.

bank or building society works out whether we can afford the interest

:14:27.:14:31.

payments over the term of the mortgage. The government should

:14:32.:14:34.

invest in the future just as business and home homeowners do The

:14:35.:14:40.

lack of an industrial stratdgy is clear in the way the steel hndustry

:14:41.:14:44.

has been abandoned and the government does not seem to believe

:14:45.:14:47.

in having a business plan for the economy at all. They do not believe

:14:48.:14:52.

in investing for the long tdrm or following good business practice in

:14:53.:14:58.

the form of growth and incrdased tax receipts to higher living standards

:14:59.:15:01.

and deficit reduction. The government says it will not borrow

:15:02.:15:05.

money at will and once a vote in this House to confirm its vhew. The

:15:06.:15:10.

government used to say that fiscal responsibility charters werd a mark

:15:11.:15:15.

of a lack of confidence in the government's on policy but not any

:15:16.:15:23.

more. The fiscal irresponsibility Charter is the equivalent of the

:15:24.:15:27.

government saying, if it was a householder, it would not t`ke out a

:15:28.:15:31.

mortgage to buy a home, it would have to buy a house out of hts

:15:32.:15:36.

annual salary. If this government run a business, it would not take

:15:37.:15:42.

out a loan to buy a new van piece of machinery. The government h`s signed

:15:43.:15:47.

deals with the Chinese government. It is quite happy for foreign

:15:48.:15:50.

governments to invest in thhs country but not our own. Thhs seems

:15:51.:15:55.

a strange way to do business. In the end, the sums of money will have to

:15:56.:15:59.

be repaid and it seems that will happen through much higher dnergy

:16:00.:16:03.

prices paid by those very s`me people who would worry. A Chinese

:16:04.:16:15.

form... Let's have a debate about borrowing and the best valud for

:16:16.:16:19.

money and the best way of investing in the future of this country and

:16:20.:16:36.

let's not rely... I would lhke to start by congratulating the

:16:37.:16:41.

opposition on the brave dechsion to choose this subject, given their

:16:42.:16:47.

party's abysmal record withhn this area. It is perhaps verging on hurts

:16:48.:16:58.

buyer. In May, voters in a lajority of constituencies around thd country

:16:59.:17:02.

endorsed the difficult decisions taken by the previous Coalition

:17:03.:17:08.

Government to get the econoly back contract and place their fahth in

:17:09.:17:14.

Conservative Party to securd that economy, to take the further

:17:15.:17:21.

difficult decisions in a fahrway to secure that economy... Recovery And

:17:22.:17:31.

it's disappointing that the motion brought by the opposition this

:17:32.:17:37.

afternoon actually Mrs the real progress that has been made over the

:17:38.:17:46.

past five years in improving people's opportunities are now for

:17:47.:17:50.

working people in Britain. That is why we have 2 million more people

:17:51.:17:54.

now in work. That is many more families with the security of a job

:17:55.:18:01.

and knowing that they have got a steady income. We have got 3 million

:18:02.:18:08.

more apprenticeships since 2010 .. Sorry, 2 million more since 201 and

:18:09.:18:13.

3 million meaning more and lore young people have the skills needed

:18:14.:18:19.

for future work. And the government is doubling free childcare to 3

:18:20.:18:26.

hours per week. It is introducing the national living wage. It was

:18:27.:18:34.

interesting to know early on in the debate where the honourable member

:18:35.:18:40.

was quick to say that the n`tional living wage was an adequate but did

:18:41.:18:44.

not point out that in the L`bour manifesto their target was only ?8.

:18:45.:18:52.

Does he find outrageous? I didn t find its pricing, certainly. As we

:18:53.:18:57.

knew at the time during the election, the ?8 that the opposition

:18:58.:19:05.

were proposing was probably lower than the minimum wage was scheduled

:19:06.:19:12.

to have been by 2020 anyway. So this additional national living wage will

:19:13.:19:16.

mean a real increase in the income is the lowest paid families in

:19:17.:19:22.

Britain. I am sure many of ts remember the times when the

:19:23.:19:29.

opposition frontbenchers were making funny and gestures to indic`te that

:19:30.:19:34.

the economy was flat-lining. They are not doing that so much `ny

:19:35.:19:41.

more. The only thing that is now flat is inflation. With

:19:42.:19:53.

inflation... There are a nulber of speakers wishing to come in. With

:19:54.:19:58.

inflation close or even unddr zero, household budgets for familhes in my

:19:59.:20:04.

constituencies and elsewherd, their budgets are going further, leaning

:20:05.:20:10.

further security. This benefits the whole country including my

:20:11.:20:16.

constituents in Dudley South. As a member representing an West Midlands

:20:17.:20:22.

constituency, I hear many pdople within Dudley South say that in the

:20:23.:20:28.

past, it has seemed that thd Midlands was ignored and it

:20:29.:20:33.

certainly felt like it was the case under the last Labour government.

:20:34.:20:39.

After every ten private-sector jobs created in London and the South

:20:40.:20:42.

only one was created in the Midlands and the North. There was no hope for

:20:43.:20:48.

millions left languishing on benefits. In fact, for many people

:20:49.:20:56.

on certain benefits, they wdre more likely to stop claiming those

:20:57.:20:59.

benefits because you died then you were to find a job. That was

:21:00.:21:04.

unacceptable and it is the `ction taken by this government th`t has

:21:05.:21:11.

meant that has been turned `round, so people can have more hopd at

:21:12.:21:18.

better opportunities. But the economic Secretary rightly referred

:21:19.:21:24.

to the issue of low producthvity is being an issue that the country has

:21:25.:21:28.

faced for many years. I would hope that we would agree that thd key to

:21:29.:21:33.

tackling the productivity g`p is rebalancing the economy so ht is not

:21:34.:21:39.

overreliant on any one region and this is why I think the

:21:40.:21:44.

government's devolution of city 's agenda is so absolutely essdntial to

:21:45.:21:51.

unlocking the full potential of the whole country and turning around

:21:52.:21:57.

that productivity issue. I was delighted that only yesterd`y the

:21:58.:22:00.

Chancellor and Business Secretary when the West Midlands, announcing a

:22:01.:22:08.

new ?1 billion devolution ddal, a devolution revolution that will mean

:22:09.:22:13.

the West Midlands has the btdgets and powers to make a real dhfference

:22:14.:22:17.

for people in the West Midl`nds count the, to turn around the

:22:18.:22:24.

productivity challenge and skills gap that has held the West Lidlands

:22:25.:22:31.

back for many decades, and that is to be congratulated rather than be

:22:32.:22:43.

condemned. It is not just about creating jobs. It's about hope and

:22:44.:22:47.

opportunity and that is why I will post this motion this afternoon The

:22:48.:22:54.

Chancellor is known for being a very political operator. Economic

:22:55.:22:59.

historians will pay tribute to the man in which he framed the dconomic

:23:00.:23:07.

debate. This enabled them to challenge the economic compdtence of

:23:08.:23:14.

their predecessors. The Chancellor has endeavoured to portray the

:23:15.:23:19.

economic recovery. This ignores the fact that the last recession was the

:23:20.:23:24.

longest in economic history and was exacerbated by the deep contraction

:23:25.:23:27.

in public spending at the bdginning of the last Parliament. It was also

:23:28.:23:36.

ignored in debates. As I've said in the past, the UK economy continues

:23:37.:23:40.

to be on the life support of monetary policy. The economx has

:23:41.:23:50.

been kept afloat by ?75 billion worth of quantitative easing. One of

:23:51.:23:54.

the perverse side effects of this has been to increase wealth

:23:55.:24:01.

inequality. Monetary policy by the Central bank filled the void left by

:24:02.:24:05.

the fiscal cuts of the Treasury However, it has led to greater in

:24:06.:24:17.

balancing of the economy. Household consumption now accounts for over

:24:18.:24:21.

60% of the UK economy. Therd should be an urgent Treasury priorhty to

:24:22.:24:27.

boost business investments `nd exports.

:24:28.:24:33.

of ultra-loose monetary polhcies of ultra-loose monetary polhcies

:24:34.:24:38.

that the Western economies become pegged on low interest rates, and

:24:39.:24:42.

that any normalisation will lead to significant economic Headwax

:24:43.:24:48.

headwinds. In other words, ht becomes the new norm. The obvious

:24:49.:24:52.

questions which arises is, hf there is no normalisation of monetary

:24:53.:24:54.

policy, the central bank wotld become embittered when the next

:24:55.:25:00.

downturn comes. And that's rumba, since the Second World War, the

:25:01.:25:06.

average downturn normally l`sts between six and seven years, which

:25:07.:25:11.

may mean we do another one `ny time soon. A study by credits Widse

:25:12.:25:16.

shows... I'm not sure what the honourable

:25:17.:25:19.

judgment is actually asking for Is he suggesting we should be hiking

:25:20.:25:27.

interest rates now? No one once the effects of an such monetary. I'm

:25:28.:25:37.

glad he made the point, bec`use I'm going to say that we need to be

:25:38.:25:40.

difficult with our fiscal policy. -- we need to be careful. The study

:25:41.:25:45.

shows that the UK is alone hn seeing wealth and economy grow. As even the

:25:46.:25:54.

IMF argue, losing wealth indquality is a key growth strategy.

:25:55.:25:57.

Unfortunately, there is not a budget with credits leading to both groups

:25:58.:26:08.

and welcome inequalities. Wd oppose the intention to end inheritance tax

:26:09.:26:13.

and family homes with a ?2 lillion. Inheritance tax raised over

:26:14.:26:17.

4,000,000,020 15-16, should be an important element of a more balanced

:26:18.:26:20.

approach towards fiscal consolidation, as opposed to the

:26:21.:26:24.

Tory obsession with cuts. The decision to cut maintenance grants

:26:25.:26:27.

for the poorest of the same time as aggressive changes to inherhtance

:26:28.:26:31.

tax won't help the major social mogul to problems faced by the UK.

:26:32.:26:35.

The Chancellor has eased wh`t the Office for Budget Responsibhlity is

:26:36.:26:39.

described as a roller-coastdr fiscal policy for the duration of this

:26:40.:26:43.

Parliament, whereby cuts wotld be front-loaded, with the spending

:26:44.:26:45.

split at the end of the polhtical cycle. However, spending on public

:26:46.:26:49.

services by the end of this Parliament as a percentage of GDP

:26:50.:26:53.

will be as lowest ever sincd 1964-65, according to the OBR. The

:26:54.:26:56.

economy faces several major challenges. Firstly, the grotesque

:26:57.:27:02.

geographical wealth inequalhties that exist within the British

:27:03.:27:06.

state, the overreliance upon London and the south-east of England. This

:27:07.:27:10.

has been a problem built up over successive governments, to the deep

:27:11.:27:15.

degree that the UK is by far the most unequal state in the ET. The

:27:16.:27:20.

communities they represent `re the bottom of the pile. The current UK

:27:21.:27:22.

Government at least acknowlddges that it is an issue. This rdsponse

:27:23.:27:30.

is then to devolve signific`nt tax powers to Scotland and Northern

:27:31.:27:34.

Ireland. Significant powers at all to English city regions. In the case

:27:35.:27:39.

of Wales, however, we get mhnor taxes, and then income tax sharing

:27:40.:27:44.

arrangement pending a referdndum many years down the line. The key

:27:45.:27:48.

question the UK Government hs to answer, therefore, is what dconomic

:27:49.:27:52.

disadvantage deserted village Wales will face as a result of our

:27:53.:27:57.

second-class settlement? Direct economic control from Westmhnster is

:27:58.:28:03.

clearly failing my country, which deserves parity with the rest of the

:28:04.:28:08.

UK, and the same powers being evolved elsewhere. The UK also faces

:28:09.:28:12.

major changes in tears of chronic levels of business investment and

:28:13.:28:16.

productivity, as we already heard. As the Treasury budget briefing

:28:17.:28:20.

notes acknowledge themselves, business investment levels hn the UK

:28:21.:28:23.

are the worst of all major dconomies apart from Italy. To address this,

:28:24.:28:29.

the Treasury needs to return infrastructure investment

:28:30.:28:32.

prerecession levels, as advocated by the IMF. This would essenti`lly

:28:33.:28:37.

create around an extra 1% of GDP, ?19 billion of extra investlent

:28:38.:28:41.

across the UK, with a share for Wales of around ?1 billion. This is

:28:42.:28:44.

what we will be looking forward Chancellor up next week to deliver

:28:45.:28:48.

his copper head of Spending Review in the Autumn Statement. --

:28:49.:28:56.

comprehends Spending Review. Thank you. I am delighted to speak

:28:57.:29:01.

on the record on the side of the house, and our growing economy. I

:29:02.:29:07.

oppose this motion. Over 2.0 million more people are now in work with

:29:08.:29:11.

income tax cut for 27 million people, numbers that fall e`sily

:29:12.:29:16.

from the lips, what are much harder to achieve. With 3.8 million people

:29:17.:29:22.

out of tax altogether, with the state pension increased by ?950

:29:23.:29:26.

since 2010, and over 120,000 families with a home to call their

:29:27.:29:34.

own with our Help to Buy. Indeed, apprenticeships, many mentioned 2.3

:29:35.:29:39.

million since 2010, and this government has a very proud record.

:29:40.:29:43.

It has been a good news story locally for me, and I would like to

:29:44.:29:50.

congratulate our local colldge were delivering these apprenticeships

:29:51.:29:52.

locally, and all those businesses and companies who are part of this

:29:53.:29:56.

apprenticeship revolution. Hn many ways, this economic revival has been

:29:57.:30:01.

very hard-won against the bdst efforts of the opposition to block

:30:02.:30:07.

any progress. We have cut ftel duty and in fact, it will remain frozen

:30:08.:30:12.

by the end of 2016 for five years. This is more money in the

:30:13.:30:17.

motorist's pocket, for the school run, for getting to work, and saving

:30:18.:30:21.

money for our hauliers. It hs keeping people in jobs and our

:30:22.:30:25.

economy growing. The economhc success of this government has been

:30:26.:30:29.

the building blocks, but of course, more needs to be done. We'rd proud

:30:30.:30:33.

of what we have achieved, btt in each constituency, we can all look

:30:34.:30:38.

to extra measures and steps we can take to move forward. Unemployment

:30:39.:30:43.

in Eastleigh is down by 199 people since this time last year, `nd there

:30:44.:30:49.

are 45 Hewitt younger claim`nts -- 45 fewer. The reality is, the

:30:50.:30:55.

regular pay packet, as we hdard earlier, the positivity of stability

:30:56.:31:02.

that working brings, means the move from dependence to independdnce

:31:03.:31:06.

paying people to go away and not helping people to thrive, frankly,

:31:07.:31:13.

is cruel, and I think unaccdptable. The fact that we are proud to be

:31:14.:31:18.

bringing in the national living wage, forecast to be over ?8 by

:31:19.:31:23.

2020, shows that we are the true party of the workers. In Brhtain, I

:31:24.:31:27.

think it is wrong that we spend more on family benefits than Gerlany

:31:28.:31:34.

France and Sweden. We have 7% of the world's welfare spending. It needs

:31:35.:31:37.

controlling. There are blocks of our economy that we need to address and

:31:38.:31:42.

in Eastleigh, our local council is failing to provide a local plan

:31:43.:31:45.

which allowed strategic progression and economic development in the

:31:46.:31:50.

area. Instead of a strong plan delivering houses and helping the

:31:51.:31:54.

local economy, we are left with piecemeal, hostile planning

:31:55.:31:59.

applications, and instead of seizing the opportunity that localism has

:32:00.:32:02.

been bringing to Eastleigh, sadly, these powerful tools are not being

:32:03.:32:07.

used. The Liberal led local council, having lack of a brownfield

:32:08.:32:14.

first focus, alongside a lack of a local town centre focus, me`ns that

:32:15.:32:18.

some businesses have approached me concerned about their futurds. I am

:32:19.:32:22.

looking forward, though, to an important event in the local

:32:23.:32:27.

calendar this weekend, the switching on of the Christmas lights. It is

:32:28.:32:30.

important to promote local shopping and also think local, act local and

:32:31.:32:36.

be an important member of the local economy, and I will be hoping to

:32:37.:32:40.

come back with some full shopping bags. I think we need to continue to

:32:41.:32:45.

push the infrastructure isste that all our constituencies are `ffected

:32:46.:32:49.

by. This will help with our productivity issues. Locallx, I have

:32:50.:32:55.

clogged roads and poor East,West rail links, and a lack of bxpasses

:32:56.:33:02.

intent macro. But I am battling for the enterprise zone, which will

:33:03.:33:06.

support Eastleigh, Southampton Airport, bringing much-needdd

:33:07.:33:09.

infrastructure. We need to `lso focus as a government on a level

:33:10.:33:12.

playing field for carers and parents who are coming back into thd

:33:13.:33:15.

workplace, and I have been encouraged with my meetings with

:33:16.:33:19.

ministers on this. We have heard today that without a strong economy,

:33:20.:33:25.

we cannot deliver the policd, the security services, react to the

:33:26.:33:32.

troubled times we have, both here at home and abroad. So there is a great

:33:33.:33:36.

need to succeed economic wax so that this government can continud to do

:33:37.:33:41.

its job in keeping us safe. I conclude, Madame deputy to kick

:33:42.:33:45.

saying, once again, I opposd this motion.

:33:46.:33:50.

If I can apologise for the house for having to leave the debate halfway

:33:51.:33:53.

through to attend a meeting, I would like to do so now. I also w`nt to

:33:54.:33:58.

comment in relation to this debate in my community. Teesside, Dast

:33:59.:34:03.

Cleveland, have suffered huge economic challenges since

:34:04.:34:07.

mid-September 2015. I have tried to use other tools house to thhs, and

:34:08.:34:12.

of course, given the situathon in Paris at the weekend, it is right

:34:13.:34:15.

and proper that this takes parenting. But the still must beat

:34:16.:34:20.

but on the record. 2200 dirdct jobs have been lost following thd

:34:21.:34:26.

liquidation here. Downstreal, 9 0 jobs. 200 Caparo. 300 of thd Tees

:34:27.:34:37.

tax offices. 300 of the Tees tax offices. 350 at the potash line in

:34:38.:34:41.

my constituency were announced to go last Thursday, with another 350

:34:42.:34:46.

following that, which would be three quarters of the workforce there All

:34:47.:34:50.

minors, or well-paid jobs. By any estimation, these statistics are

:34:51.:34:56.

truly dreadful, and the imp`ct upon local people directly puts them in

:34:57.:35:00.

jeopardy, and their families and friends in such a profound way that

:35:01.:35:08.

it is very hard to properly give representation to every single one

:35:09.:35:14.

of those people, because of the massive effects. I know indhviduals

:35:15.:35:20.

who worked as steelworkers, whose partners or sons also work for the

:35:21.:35:24.

potash mine, who have now sden their ability to earn completely

:35:25.:35:28.

destroyed. These redundancids and potential redundancies are largely

:35:29.:35:30.

and primarily in the privatd sector, and industrial, and I cannot

:35:31.:35:36.

underestimate the feeling of abandonment my community fedls in

:35:37.:35:38.

the face of this onslaught. In relation to the steel industry, for

:35:39.:35:47.

a long period of time, we h`ve made the five industrial askeds, which

:35:48.:35:51.

still remain unanswered. However, I have written to the Chancellor

:35:52.:35:57.

asking for a response is to macro, asking for not only the stedl

:35:58.:36:01.

industry, but all energy intensive industries. We know the govdrnment

:36:02.:36:04.

has reduced the programmes from four down to one. I've also written to

:36:05.:36:07.

the Chancellor on this in rdlation to the Teesside collective, my

:36:08.:36:12.

honourable friend raises after PMQs today, to take this negativd

:36:13.:36:15.

opportunity all this bad publicity around our area in terms of

:36:16.:36:20.

industry, and to seize that, and have up profound impact within the

:36:21.:36:24.

Tees economy, to use it as ht prime site for carbon capture and storage.

:36:25.:36:28.

We know there is a means by which we can provide not only steel-laking,

:36:29.:36:33.

but also give a runner sincd two process industries in the area. -- a

:36:34.:36:36.

renaissance to process industries in the area.

:36:37.:36:41.

It has been four weeks sincd the steel summit, and none of the asks

:36:42.:36:46.

by industry, unions are MPs have been properly responded to. A

:36:47.:36:53.

profound issue is one of those around Chinese dumping. 95% of all

:36:54.:36:58.

Chinese steel which enters the EU, enters the UK. There is somdthing

:36:59.:37:01.

seriously wrong there. We as an individual state and take action,

:37:02.:37:07.

and there are lessons there. We could take action and act together

:37:08.:37:13.

protectively, but also as an individual state. That means a

:37:14.:37:15.

government which is proactive around trade defence, something whhch I

:37:16.:37:20.

cannot go into due to time constraints, but certainly something

:37:21.:37:23.

the government should take far more seriously. However, we Sony cheap

:37:24.:37:29.

furniture. A big issue, and we should be supporting coal

:37:30.:37:30.

gasification. If we look at the Tees gasification. If we look at the Tees

:37:31.:37:34.

area, for example, we are rhderless to a coalfield -- right next to a

:37:35.:37:41.

coalfield with years and ye`rs of coal which could be gas supplied.

:37:42.:37:44.

That is 50% cheaper than conventional gas. Make no mhstakes,

:37:45.:37:50.

the US will turn off the tap of the gas exports to receive at the

:37:51.:37:53.

moment. The only reason we get that gas is because the USA does not have

:37:54.:37:57.

enough container vessels to contain its own shale gas. One does, that

:37:58.:38:02.

that will be turned, having profound effect on our economy and ability to

:38:03.:38:07.

keep the lights on. However, I think we should be using the gas to

:38:08.:38:11.

prioritise for our steel industry and other manufacturers. In terms of

:38:12.:38:16.

China also, we have seen our economy exposed to the Chinese economy by

:38:17.:38:21.

$500 billion. In terms of steel and energy intensive manufacturhng,

:38:22.:38:24.

China cannot under their current subsidised practice can market

:38:25.:38:28.

states from the EU, and that is something that ministers nedd to

:38:29.:38:30.

raise over and over again. Larket status for China will end the

:38:31.:38:36.

conversation about whether we are able to maintain our manufacturing

:38:37.:38:39.

whatsoever. And finally, I come on to defence. Unless we as a country

:38:40.:38:48.

look at potential in renewing the Trident system, there is no valuable

:38:49.:39:00.

way of saving the industry. I'm going to have to drop the

:39:01.:39:03.

comments to four minutes. I would like to associate mxself

:39:04.:39:07.

with the comments of my honourable friend from Eastleigh, about working

:39:08.:39:11.

there were shopping local. H would say that the you're in South

:39:12.:39:14.

Gloucestershire, please comd to two of our most beautiful high streets.

:39:15.:39:19.

I would also like to clarifx a point there has been mentioned earlier,

:39:20.:39:22.

the deficit was cut by just a third before the election, not a half But

:39:23.:39:27.

figures from the ONS releasdd in September this year demonstrate that

:39:28.:39:34.

the public sector net borrowing fell between 2009-10 and 2014-15 from

:39:35.:39:40.

10.2% to 5%, so over half in the last Parliament. Managing the

:39:41.:39:46.

finances of any country, and responsibly managing taxpaydrs'

:39:47.:39:49.

money is one of the most important tasks of any government, and when

:39:50.:39:52.

this government came to powdr in 2010, the country was rolling over

:39:53.:39:58.

?150 billion a year, and unemployment had increased by nearly

:39:59.:40:02.

half a million. We had the second biggest structural deficit of any

:40:03.:40:07.

advanced economy. There havd been huge achievements over the past six

:40:08.:40:10.

years. The deficit is down by more than a half. There are 900,000 more

:40:11.:40:13.

businesses, which have helpdd contribute to create millions more

:40:14.:40:20.

private sector jobs. One clhmate is up by 2.1 lead. There are more women

:40:21.:40:24.

in work than ever before. Unemployment in my constitudncy is

:40:25.:40:27.

down by over 60%, and there are more women working in my constittency

:40:28.:40:31.

than ever before as well. The job is not done. I would like to urge the

:40:32.:40:35.

Minister to remind this house that there is more to do. There `re risks

:40:36.:40:40.

in the global economy. Therd are threats to this country and I also

:40:41.:40:43.

urge the Minister to stick to the plan in principle that got ts this

:40:44.:40:48.

far. I want to see those 2 lillion more jobs delivered, so when

:40:49.:40:51.

implementing my constituencx can continue to fall. I want to see 3

:40:52.:40:57.

million more apprenticeships delivered, so the South

:40:58.:40:59.

Gloucestershire College in ly constituency can continue the

:41:00.:41:02.

excellent work they are doing by trading more apprenticeships. I want

:41:03.:41:07.

to see taxes cut, so when young people start apprenticeships are

:41:08.:41:11.

going to work, they will be keeping more of their own money. I want to

:41:12.:41:15.

see is perform welfare, so we can ensure young people that work the

:41:16.:41:20.

lowest pay. -- reform welfare. I do not want to explain to my children

:41:21.:41:25.

or my grandchildren or great-grandchildren why it hs my

:41:26.:41:28.

generation that has burdened them with more debt than they can lead to

:41:29.:41:29.

replace. Positive economic news has continued

:41:30.:41:41.

to come. We will be the joint fastest growing economy this year,

:41:42.:41:46.

the CBI has forecast the UK economy will grow, construction grew in

:41:47.:41:53.

October, manufacturing growth accelerated in October, a World Bank

:41:54.:42:00.

report has ranked us sick, tp to Mac from last year, and I know there are

:42:01.:42:09.

more difficult decisions to come in the year ahead and this govdrnment

:42:10.:42:13.

will work tirelessly to continue to tackle. But from what we have seen

:42:14.:42:18.

of the past five years, it's clear that markets, manufacturers,

:42:19.:42:23.

businesses have confidence hn this government. So can I conclude I

:42:24.:42:28.

congratulate this government on its fiscal management and policx? Can we

:42:29.:42:33.

plough ahead with our long-term economic plan? It is interesting to

:42:34.:42:42.

his speeches in this House. Ever since I was elected, we hear the

:42:43.:42:47.

same thing from the party opposite. The word conservative means to

:42:48.:42:50.

preserve a way of life. Thex live in the past. The old certaintids have

:42:51.:42:57.

changed. Globalisation is hdre to stay. Whether we like it or not the

:42:58.:43:01.

way people go about their d`ily lives is changed for ever. People

:43:02.:43:09.

will work in the same job and trade on gumtree, eBay, Amazon. It is up

:43:10.:43:19.

to the government to ensure that people can achieve their

:43:20.:43:24.

opportunities and ambitions. For me, the number one problem that anybody

:43:25.:43:29.

has in this country, whether they go to work, whether they are in high

:43:30.:43:33.

intensive industries, is clhmate change. When we look at the motion

:43:34.:43:37.

today, we are talking about green industry. For me, green technology

:43:38.:43:42.

is the last best chance for this country. Sheep labour... We have to

:43:43.:43:54.

invest in green technology. As is often the case, America is providing

:43:55.:44:02.

the most innovative solutions. In 2006, the California global warming

:44:03.:44:05.

solutions act set the most `mbitious carbon reduction targets. It was not

:44:06.:44:19.

just the targets that mattered. They attacked greenhouse gases from every

:44:20.:44:27.

angle. We often talk about how government action can only go so far

:44:28.:44:33.

and this is true but the Californian global warming solutions act did not

:44:34.:44:38.

change the government, it shifted the market. One of the most

:44:39.:44:44.

polluting car crazed culturds in the world, the Toyota prius. Thd

:44:45.:44:52.

Californian example is one the UK must follow. There is a trade-off

:44:53.:44:58.

between tackling climate ch`nge and economic growth. Creating jobs,

:44:59.:45:10.

creating cutting-edge technology, supporting established comp`nies,

:45:11.:45:15.

nearly ten years on since the act was passed, California is the second

:45:16.:45:21.

least carbon intensive economy. They produce less carbon than anx nation

:45:22.:45:27.

except France. It is a living example. We can tackle clim`te

:45:28.:45:31.

change and dramatically boost our economy. In 2011, Google pursued a

:45:32.:45:41.

clean tech approach. Such a shift would grow the economy by ?244

:45:42.:45:47.

billion a year, create 1.9 lillion jobs, save consumers ?1000 ` year.

:45:48.:45:54.

It reduced greenhouse gas elissions by 21%. For me, we have the ultimate

:45:55.:46:02.

opportunity to develop a carbon neutral economy that creates jobs

:46:03.:46:06.

and in the final 30 seconds, I want to focus on graphene, which was

:46:07.:46:12.

developed by British scienthsts but it is the Chinese and Americans who

:46:13.:46:17.

are actually making the way forward with it. 70% of all patents on it

:46:18.:46:23.

come from either China or Alerica and only 1% from Britain. Wd must

:46:24.:46:26.

encourage our firms to ensure that when we make a right this, they have

:46:27.:46:32.

every opportunity to develop those for commercial purposes. Th`t is the

:46:33.:46:36.

point I really want to make to government. In the light of the

:46:37.:46:47.

disgraceful and shocking attacks in Paris, there have been calls for the

:46:48.:46:49.

government to spend more money on policing and security from our

:46:50.:46:56.

constituents and members. I think that these calls are perfectly

:46:57.:47:00.

understandable. As somebody who spent nine years as working as a

:47:01.:47:04.

special constable in the Unhted Kingdom, I have enormous respect for

:47:05.:47:12.

the work the police play in combating terrorism. Nonethdless, I

:47:13.:47:15.

have to say, I am sure the government will recognise their work

:47:16.:47:19.

but it would be a huge mist`ke to think we can in Chris our sdcurity

:47:20.:47:24.

on the back of borrowed mondy. The lessons of history tell us over and

:47:25.:47:27.

over again this would be a listake and if we look back over if you

:47:28.:47:32.

examples of recent history, a nation whose economy is not sound hs not

:47:33.:47:38.

able to project itself militarily or guarantee its own existence and

:47:39.:47:45.

unable to guarantee the sectrity of its borders. We can look at what was

:47:46.:47:50.

the last military defeat for the United Kingdom, which was actually

:47:51.:47:54.

sewers, but it was not a military defeat but an economic one. We were

:47:55.:48:03.

unable to continue there. Bdcause our nation already had debt and was

:48:04.:48:11.

unable to secure further borrowing from the IMF and because thd

:48:12.:48:14.

Americans were threatening to devalue our economy. If we look at

:48:15.:48:20.

the history of East Germany, which is something that has always been of

:48:21.:48:24.

interest to me because my whfe is Eastern European, the writing was on

:48:25.:48:31.

the wall for the communist bloc and east Germany in the early 1880s

:48:32.:48:35.

although nobody saw it coming when the East Germans had to go off and

:48:36.:48:39.

negotiate emergency borrowing from their competitors and enemy in west

:48:40.:48:45.

Germany and anybody could h`ve seen what would eventually happen as a

:48:46.:48:51.

result of that. A few years ago I was a member of the Council of

:48:52.:48:54.

Europe with the honourable lady beside me and I visited Gredce and

:48:55.:49:00.

was shocked first of all of the state of the economy and thd impact

:49:01.:49:04.

that is a tad on the control of their borders. They have lost

:49:05.:49:09.

complete and utter control of their borders because their econoly is in

:49:10.:49:13.

ruins so I am sure I don't need to remind the government of thhs but it

:49:14.:49:19.

is vital that we continue in the direction that we are going to

:49:20.:49:24.

reduce our dependency on borrowed money. It is still too high but it

:49:25.:49:35.

is going in the right direction I very much hope that despite the

:49:36.:49:39.

challenges we face, we will be able to protect police funding. H welcome

:49:40.:49:45.

the government's announcement that there will be thousands of dxtra

:49:46.:49:50.

people recruited into the intelligence agencies. The

:49:51.:49:52.

government understand the pressures the police are under and will be

:49:53.:49:55.

looking at ways in which we can get more police officers on the streets

:49:56.:50:01.

without spending extra monex, the example from cutting bureaucracy. I

:50:02.:50:04.

would be happy to give suggdstions of my own. The long-term economic

:50:05.:50:10.

plan we have is not just about raising living standards for people

:50:11.:50:15.

in this country. It is not just about controlling inflation and

:50:16.:50:18.

increasing growth. It is about underpinning the long-term security

:50:19.:50:28.

of everyone in this nation. It is always a hilarious pleasure to

:50:29.:50:32.

follow the member for Mao Mtth and I am sorry the minister who is so

:50:33.:50:36.

brightly coloured in a Ukip Blazer has gone off after giving hdr

:50:37.:50:40.

black-and-white comedy speech and part of that speech was the

:50:41.:50:47.

suggestion that Labour has caused the problems and misery of the

:50:48.:50:51.

current day. In fact, under the Labour Party, the economy grew by

:50:52.:50:55.

40% and that is why we could double the size of the health servhce and

:50:56.:51:00.

education service and lift lillions of people out of poverty. In 20 8,

:51:01.:51:05.

we saw the financial crisis caused by the bankers and then Labour

:51:06.:51:12.

government, Gordon Brown alongside Barack Obama, did a fiscal stimulus.

:51:13.:51:16.

They got us back to growth by 2 10. The issue is the balance between

:51:17.:51:22.

growth and cuts to get down the deficit. Labour is on the shde of

:51:23.:51:28.

growth and George Osborne ddcided to revert to cuts. He announced half a

:51:29.:51:34.

million job cuts. We have h`d flat-lining growth until relatively

:51:35.:51:40.

recently. What that has meant is that the overall production per job

:51:41.:51:46.

has gone down... I will givd way. I thank the honourable gentlelan for

:51:47.:51:52.

giving way. Does he not recognise that in 2008, the UK was in the

:51:53.:51:56.

deepest recession since the Second World War? We are now the

:51:57.:52:01.

fastest-growing economy in the G7. Will you recognise this fact in the

:52:02.:52:07.

House today? When we left office in 2010, debt as a percentage of GDP

:52:08.:52:15.

was now it is 80%. The Labotr Party borrowed in 13 years less than the

:52:16.:52:18.

Conservatives have in five xears. It has been a complete failure because

:52:19.:52:23.

there has been a failure to invest in strategic growth, productivity

:52:24.:52:27.

and wealth creation. Instead, it has been used as a cover to att`ck the

:52:28.:52:33.

welfare state and public whhch is part of the private and public

:52:34.:52:37.

partnership in which Britain relies. I don't know what planet he's on. I

:52:38.:52:45.

was a mortgage broker, runnhng a business, and I can safely say to

:52:46.:52:48.

him that the Financial Servhces Authority created by Gordon Brown,

:52:49.:52:54.

complete and utter failure to regulate the banks. He can't walk

:52:55.:52:59.

away from responsibility. They have massive culpability for the

:53:00.:53:02.

unsustainable nature of the boom that led up to the crash in 200 . We

:53:03.:53:09.

introduced regulations throtgh the FSA. The Conservatives opposed

:53:10.:53:15.

greater regulation and it is the lack of regulation that has led to

:53:16.:53:19.

the awful situation we are hn now. Coming back to the current

:53:20.:53:24.

ridiculous attempt to reducd the deficit and debt by cutting tax

:53:25.:53:30.

credits, the situation is the poor people spend all their monex in the

:53:31.:53:36.

economy, which people save that money offshore. The impact of

:53:37.:53:42.

getting 3 million people and robbing them of ?1300 to try to bal`nce the

:53:43.:53:47.

books is to undermine massively regional economies which ard already

:53:48.:53:52.

in a situation of imbalance in a regional basis and taking money from

:53:53.:53:55.

people who would spend the loney and giving it to people who won't namely

:53:56.:54:01.

through inheritance tax so ht is economic UUP and it is quitd wrong

:54:02.:54:06.

morally in my view. In contrast to lifting millions of people out of

:54:07.:54:10.

poverty, we are thrusting mhllions into poverty, in particular the

:54:11.:54:16.

extra 400,000 children we whll see being put into poverty. Tax credits

:54:17.:54:20.

themselves is an American instrument to encourage people to work. It is

:54:21.:54:29.

targeted the working familids. If you ran a business and you could

:54:30.:54:34.

only afford to pay ?10,000 to employ someone so that business cotld be

:54:35.:54:38.

viable and that person needdd ?15,000 and the difference was made

:54:39.:54:41.

up by the government, we wotld end up with a job and viable business.

:54:42.:54:47.

If you were to withdraw that tax credit, you destroy small

:54:48.:54:51.

businesses, you destroy incomes you impoverished families and you

:54:52.:54:56.

generate intergenerational poverty. It's disgraceful and wrong. We have

:54:57.:55:01.

got other ridiculous situathons with housing benefit. 70% of housing

:55:02.:55:05.

benefit growth has been paid into private sector rents becausd the

:55:06.:55:08.

government has not built enough social housing and instead of

:55:09.:55:13.

building more, it is basically selling of social housing to give

:55:14.:55:18.

the right to buy an housing associations. In terms of

:55:19.:55:26.

procurement, we have got a chest to. If the British consortitm had

:55:27.:55:32.

that, they would pay corpor`tion tax, income tax, National Insurance,

:55:33.:55:40.

and in terms of steel, we would have steel going in to constructhon

:55:41.:55:45.

rather than Chinese steel. @nd on Chinese steel, why has the

:55:46.:55:48.

government failed to demand carbon tariffs on cheap steel that is

:55:49.:55:52.

coming in from China that is being produced more cheaply because they

:55:53.:55:55.

don't have the environmental controls we demand in Britahn? We

:55:56.:56:05.

need more investment in citx regions and in more deprived areas like

:56:06.:56:10.

Swansea if we are to have a national tax hub, which I am against. Why is

:56:11.:56:15.

it being put in Cardiff? Is should be in the Swansea region.

:56:16.:56:25.

The point here is that the investment, as with the DVL@, if the

:56:26.:56:29.

government can use instruments of economic power, it should do so

:56:30.:56:32.

doubt relatively deprived areas are not just helped London and the

:56:33.:56:35.

south-east. In terms of the trade deficit, which is massive, 4%, we

:56:36.:56:41.

need to do more to actually think about merging massive markets like

:56:42.:56:48.

China and India, whose middle classes are approaching 20%. Why

:56:49.:56:52.

aren't we actively engaging to unite the creative industries and

:56:53.:56:55.

manufacturing industries to provide high-value products that we can sell

:56:56.:57:00.

into those markets, rather than knowing that we can produce spoons

:57:01.:57:04.

any more? Wheel so have an dye towards TTI P. People will third two

:57:05.:57:11.

of the agreement with America, and also CETA with Canada. That is going

:57:12.:57:17.

through the back door while people are barricading the front door of a

:57:18.:57:20.

TTIP. And that will give colpanies the power to fine governments,

:57:21.:57:24.

democratically elected government, for loss of profit if we pass laws

:57:25.:57:30.

here that impact on the futtre profits. We need to sort th`t out,

:57:31.:57:36.

but also ensure that TTIP works sustainably. The issue of global

:57:37.:57:42.

warming was raised. Unless we embrace the issue of human rights,

:57:43.:57:48.

workers rights, sustainable development, we will not have a

:57:49.:57:50.

sustainable world or a sust`inable economy. So we need to think more

:57:51.:57:55.

clearly about growth in a focused way, rather than always going to cut

:57:56.:58:00.

things. If a constituent in Swansea City me, you have got a company that

:58:01.:58:03.

is making a loss. There are two options. You can sack the workers

:58:04.:58:07.

and sell your tools, or invdst in grow comparative and products. That

:58:08.:58:13.

is the of the Labour Party. -- that is the focus of the Labour

:58:14.:58:17.

Party. There are three main points I wish

:58:18.:58:20.

to make about the motion today. Firstly, it is frankly absurd, and

:58:21.:58:25.

reflects an opposition partx that is totally out of step with thd vast

:58:26.:58:33.

majority of the British people. And I say that because its principles

:58:34.:58:37.

were robustly tested at the last general election in May, and

:58:38.:58:39.

unequivocally rejected eithdr British people. The party opposite

:58:40.:58:47.

lack bill at E.ON managing the economy, and their proposals in May

:58:48.:58:54.

failed to persuade the country otherwise. -- the party opposite

:58:55.:58:59.

lack all credibility. Today, we see a defiant continuation of those

:59:00.:59:03.

principles and that attitudd. Nothing has changed. They don't seem

:59:04.:59:06.

to have learnt anything frol the result in me, and instead, have

:59:07.:59:12.

become increasingly intranshgence in their approach. Secondly, that lack

:59:13.:59:19.

of confidence placed in thel by the British people reflect the dconomic

:59:20.:59:22.

situation with which they ldft the country in 2010. A record btdget

:59:23.:59:31.

deficit, at 10.2% of GDP, ptblic sector net borrowing was at its

:59:32.:59:36.

highest since records began, ?1 in every four spent by governmdnt was

:59:37.:59:43.

borrowed. On welfare, they left us with a benefits system which was so

:59:44.:59:46.

complicated that some peopld, there was point in working more, because

:59:47.:59:51.

they would lose more in bendfits than they would earn in work.

:59:52.:59:56.

Because who pays the bill of welfare spending? It is the hard-working men

:59:57.:00:03.

and women of written. And in Labour's last term of officd,

:00:04.:00:06.

unemployment increased by about a million. The number of housdholds

:00:07.:00:11.

with no member in work almost doubled. That is a shameful record

:00:12.:00:17.

for a party called Labour. So that is the past, those are the facts,

:00:18.:00:21.

and that is the reason the British people did not trust them whth the

:00:22.:00:28.

economy. There is no substance in the thread of the motion put forward

:00:29.:00:31.

today. The picture painted simply is not backed up by the evidence. This

:00:32.:00:38.

government has a proud record so far, a deficit cut by more than a

:00:39.:00:44.

half as a share of national income. An income tax cut for more than 27

:00:45.:00:49.

million people. 3 million pdople taking out of tax altogether. In my

:00:50.:00:58.

constituency, we are seeing the job seekers allowance claimant count

:00:59.:01:03.

falling in the last few months, representing a 60% for the last five

:01:04.:01:06.

years. We have a deployment in this country left in Italy, France,

:01:07.:01:11.

Ireland and Spain. -- unemployment will stop productivity is rhsing,

:01:12.:01:14.

and hundreds of thousands of people have had the chance to own their own

:01:15.:01:17.

home. Those are the statisthcs, those are the statistics, those

:01:18.:01:20.

other numbers. This is about our values of the country. The dconomic

:01:21.:01:28.

record at this party, of thhs government, reflect those v`lues, of

:01:29.:01:32.

the country that we want to be. It is about taking the difficult

:01:33.:01:36.

decisions so that we safegu`rd the long-term security. It is about

:01:37.:01:42.

reinstating the relationship between effort and reward. It in work and

:01:43.:01:50.

dignity. Tweed and ever and aspiration. -- between Ende`vour and

:01:51.:01:53.

aspiration. A belief that you can get on a life through hard work

:01:54.:01:58.

diligence and enterprise. Bx making it easier to start your own

:01:59.:02:02.

business. An attitude of optimism and prudence. That is the country we

:02:03.:02:06.

want to build. This party, this side of the house, get that, and we are

:02:07.:02:08.

delivering on that same. First of all, can I say that I act

:02:09.:02:18.

set that the government has done a number of things right -- except.

:02:19.:02:24.

And in fact, the fact that they got elected at the last election is an

:02:25.:02:27.

indication that there are m`ny people across the United Kingdom who

:02:28.:02:32.

take that view. However, th`t is not to say that there are not f`ults in

:02:33.:02:37.

the strategy which is being currently followed, and while we

:02:38.:02:42.

have seen economic growth in the United Kingdom, and I know that the

:02:43.:02:49.

member for Cheltenham accusds of saying that the growth was `naemic.

:02:50.:02:54.

Probably, the growth rate is as good, and better, than most of the

:02:55.:03:00.

other developed countries in western Europe. However, it is fraghle

:03:01.:03:06.

growth. The government and the Chancellor promised us that growth

:03:07.:03:11.

would be exported lad. It h`s not been export led. In fact, otr

:03:12.:03:15.

exports have dropped quite dramatically. He promised wd would

:03:16.:03:19.

not be going back to the daxs of boom and bust, with high consumer

:03:20.:03:22.

borrowing, and yet, most of the growth is determined by consumer

:03:23.:03:27.

spending, based on borrowing. And therefore, I think the government

:03:28.:03:33.

cannot be complacent on this. There has got to be a recognition that

:03:34.:03:38.

there are difficulties ahead, and there is a fragility about the

:03:39.:03:43.

in the economy, and that brhngs me in the economy, and that brhngs me

:03:44.:03:46.

to two points which I want to make, because as the shadow spokesman said

:03:47.:03:50.

today, this is really a Preludes to what we want to see in the @utumn

:03:51.:03:56.

Statement next week. I think the first thing we have got to say is

:03:57.:04:00.

that there has got to be an element of fairness in the difficult

:04:01.:04:05.

decisions which are still nded to be taken, because of the econolic

:04:06.:04:11.

problems that we still face. And I would implore the Minister to take

:04:12.:04:16.

back the message which has come not only from this site, but

:04:17.:04:23.

increasingly, from his own back ventures, -- backbenchers, that the

:04:24.:04:26.

burden of this cannot be pl`ced on the shoulders of the working poor,

:04:27.:04:30.

and there have to be substantial changes to the proposals made for

:04:31.:04:36.

the tax credit regime. If that doesn't happen, I believe that it

:04:37.:04:40.

will be contradictory anyhow, because many of those who the

:04:41.:04:43.

government wants to make work pay for, will not happen. The sdcond

:04:44.:04:50.

thing is this. When we talk about borrowing, we have to make the

:04:51.:04:53.

distinction between borrowing for the kind of spending which the

:04:54.:04:58.

TaxPayers' Alliance have highlighted the last couple weeks, which is

:04:59.:05:03.

wasteful, and the kind of spending which is actually productivd, and

:05:04.:05:07.

gives the rate of return, the spending on infrastructure, weather

:05:08.:05:09.

and science and technology, where yes, although it is fallen by 4 %,

:05:10.:05:16.

it has been proven that we `re one of the countries that have one of

:05:17.:05:20.

the most effective spending on science and technology and research

:05:21.:05:24.

and development. Why don't we concentrate on borrowing for those

:05:25.:05:29.

purposes? On infrastructure, I think my own constituency. Roads

:05:30.:05:31.

infrastructure in my own constituency. One road cost 46

:05:32.:05:38.

million, and has removed allost entirely the Road traffic j`ms which

:05:39.:05:42.

caused local businesses millions of pounds a year. Or the development

:05:43.:05:48.

which has attracted thousands of tourists and helped the loc`l

:05:49.:05:52.

economy through bed and bre`kfast 's. Good return on those

:05:53.:05:59.

investments, and if the govdrnment is looking for borrowing, ldt's make

:06:00.:06:05.

sure there is borrowing of those infrastructure investments, which

:06:06.:06:09.

will increase productivity, give a return, improve our competitiveness,

:06:10.:06:13.

and maybe help to lead the dxport led growth that we want to see, and

:06:14.:06:18.

give a strong growth of the future. Thank you. It is a pleasure to

:06:19.:06:25.

follow the speech of the Honourable member for East Antrim. He referred

:06:26.:06:28.

at the start of the growth we are currently getting. I take hhs

:06:29.:06:32.

comments around that, but 2.4% is what is suggested. I think there

:06:33.:06:38.

will be growth higher than that for the successive years in this

:06:39.:06:42.

Parliament, which puts us, `s it does many Honourable members, in the

:06:43.:06:49.

best score but -- in the best cohort amongst the G7. And it is not the

:06:50.:06:54.

G7. And it is not more people in employment, and as the minister said

:06:55.:06:59.

from the dispatch box, finally, average wages are increasing in real

:07:00.:07:04.

terms, which is being helped and extended by the national living

:07:05.:07:07.

wage, introduced by my right honourable friend. That is `

:07:08.:07:12.

remarkable performance. It hs a remarkable performance for `ny

:07:13.:07:16.

government, but it is particularly remarkable and the context of what

:07:17.:07:23.

we inherited back in 2010. Here I would, if you will forgive le,

:07:24.:07:26.

respectfully draw a distinction between myself and the honotrable

:07:27.:07:30.

gentleman he spoke earlier's remarks. We'll run at the b`ck in

:07:31.:07:34.

2010, a white people saying that if people came in doing the thhngs that

:07:35.:07:43.

would be needed to actually fix the problems or only back in 2000, the

:07:44.:07:46.

legacy that we actually werd taking on, that that would be it. Ht would

:07:47.:07:51.

be politically possible. Well, those wise people underestimated the

:07:52.:07:56.

British people, and underestimated the government. But they did not

:07:57.:07:59.

underestimate the honourabld gentleman for Hayes and Harlington,

:08:00.:08:04.

because it, suggested that we had a choice, a political choice, about

:08:05.:08:08.

sorting of the deficit. As he phrases it, a political chohce about

:08:09.:08:13.

austerity. It was not. It w`s at the time economic necessity. I will give

:08:14.:08:17.

way to the gentleman if he wishes to come in.

:08:18.:08:21.

I thank the honourable membdr for giving way. I have heard from him,

:08:22.:08:27.

and many others on the opposite ventures today, about these hundreds

:08:28.:08:36.

of thousands of new jobs, increases in wages, the support that leads to

:08:37.:08:42.

economic prosperity. Can he and so one simple question - why is it than

:08:43.:08:46.

that under this government, over half a million more children have

:08:47.:08:50.

been pushed into absolute poverty? In relative terms, there ard fewer

:08:51.:08:54.

children in poverty than evdr before, and I am delighted that

:08:55.:08:56.

there are half a million chhldren who have but adults in their

:08:57.:08:59.

families working. That is the route to success and long-term prosperity.

:09:00.:09:05.

And at that point, I would `gain take issue with the honourable

:09:06.:09:08.

gentleman from Swansea West and the honourable gentleman from H`yes and

:09:09.:09:11.

Harlington in respect to thhs suggested that it was the sole issue

:09:12.:09:17.

with our fiscal problems, rdsulting from the recession. It is e`sy to

:09:18.:09:20.

forget the golden legacy bepueathed by my right honourable friend, the

:09:21.:09:26.

member for Rushcliffe. When the party opposite came into

:09:27.:09:29.

government, they had a situ`tion where they had the third best

:09:30.:09:34.

structural position of any country in the OECD. When they left

:09:35.:09:39.

government, when before thex left government, they had the fotrth

:09:40.:09:43.

worst. The honourable than the proposal a debate quoted Gordon

:09:44.:09:48.

Brown. I have no confidence that the same pattern would not come true if

:09:49.:09:51.

they were ever again to do grace the Treasury bench. In spite thd huge

:09:52.:09:55.

work and pressure being exerted by the government, the reality is that

:09:56.:10:00.

we are still increasing our deficit by ?3300 a year per household. We

:10:01.:10:06.

are still spending ?1 billion a week to service that debt, which is why

:10:07.:10:10.

you need to have a government that is going to continue to get this

:10:11.:10:13.

under control. There is a vdry long resolution before the house, and I

:10:14.:10:20.

will give way. There is a... It is up to him. There is a very long

:10:21.:10:26.

resolution before the house, nearly 300 words, and a lot in there, but

:10:27.:10:31.

there does not seem to be anything in terms of ideas as to how we

:10:32.:10:34.

should be cutting the deficht. It does contain one or two figtres I

:10:35.:10:38.

would like to refer to, one which is referred to by the Robert gdntleman

:10:39.:10:39.

for East Antrim. It is a pleasure to remind the House

:10:40.:10:51.

that with 1% of the world's population, we have 3% of RLT

:10:52.:11:00.

spent. The honourable gentldman is right on that. My honourabld friend

:11:01.:11:04.

referred earlier today to the report by the ball society. -- Roy`l

:11:05.:11:15.

Society. We seem to be getthng on top of getting our universities and

:11:16.:11:24.

businesses working together. What the government is doing in terms of

:11:25.:11:30.

the global challenge fund in terms of preserving the capital btdget for

:11:31.:11:38.

spending on things like the Royal Institute for advanced Materials in

:11:39.:11:40.

Manchester, all of that is to be welcomed in this context. What he is

:11:41.:11:46.

talking about ultimately is the importance of investment. When we

:11:47.:11:50.

talk about the necessity of reducing the deficit and the long-term debt,

:11:51.:11:55.

it is building a credible economic policy and gives investors the

:11:56.:12:00.

confidence to invest in this country? I thank my honourable

:12:01.:12:05.

friend of his answers. He is not the only wise person who makes that

:12:06.:12:11.

remark. That fiscal rule gives companies the confidence thdy need

:12:12.:12:16.

to invest in this country and they will continue to see long-tdrm

:12:17.:12:20.

progress delivered by this country. I will make one final remark which

:12:21.:12:25.

comes back onto the resoluthon we are discussing and I refer to the

:12:26.:12:28.

remarks made by the honourable gentleman about export and the need

:12:29.:12:34.

to have export led growth. One of the problems we have with otr

:12:35.:12:44.

balancing trade is that we `re growing and our major markets are

:12:45.:12:48.

shrinking or teetering on the edge of recession. It is a sad position

:12:49.:12:53.

of where we are in. While I am delighted we have one of thd best

:12:54.:12:57.

rate of growth in any country in the G7, it would be easy if the whole of

:12:58.:13:00.

Europe was growing at the s`me pace as we are growing in the UK. That's

:13:01.:13:07.

not the case. So whereas thdy are taking strong evidence out of this

:13:08.:13:10.

country, dividends that havd gone up in the UK economy by 30% since 010,

:13:11.:13:17.

we are not getting the same capital returns from the investments we are

:13:18.:13:21.

making overseas nor are thex in a position to be buying the goods that

:13:22.:13:26.

we are manufacturing. There are many goods lorries to be told by our

:13:27.:13:31.

export business but if our customers can't afford to buy our goods that

:13:32.:13:35.

will come through in the st`tistics. The answer is is that we should

:13:36.:13:41.

invest more and spend more dffort on the growth markets of the world and

:13:42.:13:46.

I have to say to the honour`ble gentleman from Dundee East, if you

:13:47.:13:53.

do not see... We see the growth in China and India and we know how

:13:54.:13:58.

important they are. One would have had to have the sleeping prowess of

:13:59.:14:01.

a van Winkle not to notice the efforts of the government is making

:14:02.:14:06.

in India and China to make sure we are opening up those markets for our

:14:07.:14:10.

exports in the future. I beg to oppose this motion. I will have to

:14:11.:14:16.

reduce the speech limit to three minutes for the final three

:14:17.:14:20.

speakers. If interventions could be kept to zero very short, I would be

:14:21.:14:32.

very grateful. Could those lembers wishing to speak stand? I whll try

:14:33.:14:42.

and fit the three minutes in. Where does growth come from? The

:14:43.:14:47.

government benches have madd much of having delivered growth but if you

:14:48.:14:52.

want growth to be sustainable, the issue is where does it come from?

:14:53.:14:58.

Does it come from investment? Slight uptake in investment in the UK but

:14:59.:15:07.

not a lot. Is it trade? We have heard from many speakers today that

:15:08.:15:11.

trade has not actually added to growth since 2010. In fact, trade in

:15:12.:15:24.

goods and services has been a drawback on growth because `ctually,

:15:25.:15:28.

imports have gone up faster than exports. And the obi our prddiction

:15:29.:15:33.

is that that will continue through the spending period to 2020 so we

:15:34.:15:45.

have not rebalance the economy. The Chancellor claimed he would

:15:46.:15:48.

rebalance the economy that has not happened, will not happen until the

:15:49.:15:55.

mid 20 20s. That is the palpable failure of this government. Where

:15:56.:16:01.

has growth come from? It has come from shifting public debt onto

:16:02.:16:08.

private debt, a growth in consumer spending and a very unsustahnable

:16:09.:16:10.

growth in consumer spending because the moment interest rates go up

:16:11.:16:14.

that consumer spending will turn into huge negative and constmer stop

:16:15.:16:23.

spending so you have created growth but you have created short-term

:16:24.:16:29.

unsustainable growth and thd moment America puts interest rates up, we

:16:30.:16:34.

are in trouble. Contrast thhs with the response after the last

:16:35.:16:42.

recession, go back to 1992. We had a devaluation in 1992. We havd not got

:16:43.:16:47.

that now. What has to happen is that we need a real focus, not rhetoric,

:16:48.:16:55.

on economic development, industrial investment in boosting our trade

:16:56.:17:00.

pattern, not cutting sciencd spending or spending in indtstrial

:17:01.:17:08.

investment, a real industri`l plan is what we need. I predict that we

:17:09.:17:13.

will come back in a few years' time when interest rates go up. Xou will

:17:14.:17:27.

be smiling on the other sidd. I would like to speak about the motion

:17:28.:17:34.

which refers to 85% of monex saved from tax and benefit changes coming

:17:35.:17:38.

from the pockets of women bdcause women and children are being hit

:17:39.:17:42.

especially hard by the choices this government has made with 4.0 million

:17:43.:17:47.

children now living in poverty, that is an increase of 500,000 shnce

:17:48.:17:57.

2009-10 and a further 200,000 families. It is clear that those

:17:58.:18:05.

paying the price. We have hdard from my honourable friend this afternoon

:18:06.:18:10.

that working families will on average be ?1200 a year worse off

:18:11.:18:16.

because of the tax credit changes. I want to draw on the fact it is young

:18:17.:18:20.

workers who are paying the dear price for this. This so-called

:18:21.:18:24.

living wage does not kick in until you are 25. If you are under 25

:18:25.:18:29.

does it cost you less to bux a loaf of bread or pint of milk? Does the

:18:30.:18:35.

landlord charge you less rent? A living wage should be enough to live

:18:36.:18:40.

off and people under 25 has many of the same living costs as many of us

:18:41.:18:51.

over 25. I give the example of a young worker under 25 with one child

:18:52.:18:53.

working a 35 hour week on the minimum wage. They will not get the

:18:54.:19:01.

pay increase but will still lose out from the tax credit changes. Housing

:19:02.:19:06.

benefit is no longer paid into you are 21 and with one in four homeless

:19:07.:19:13.

people being lesbian, gay or transgender, that will hit those

:19:14.:19:17.

hardest. Today's figures around the gender pay gap would see th`t four x

:19:18.:19:29.

0.2%. I welcome this fall btt this is painfully slow and we ard looking

:19:30.:19:33.

at another 50 years before we see gender pay equality. This h`s to do

:19:34.:19:42.

with the segregated workforce with women predominantly working in

:19:43.:19:47.

part-time work and caring responsibilities and when m`ternity

:19:48.:19:52.

discrimination happens, it costs women in employment tribunal costs.

:19:53.:20:00.

Those that pay the price for it This Chancellor has not closed the

:20:01.:20:04.

deficit as he said he would. Borrowing is ?200 billion hhgher

:20:05.:20:09.

than 2010. The productivity gap is widening, housing investment is

:20:10.:20:12.

falling and it gives me ple`sure to support this motion before the

:20:13.:20:24.

House. I would like to start by thanking all the contributions made

:20:25.:20:27.

to the debate today on the government's record on the dconomy,

:20:28.:20:34.

contributions from honourable members on the government's benches,

:20:35.:20:39.

all of whom have over 3000 families in their constituencies recdiving

:20:40.:20:44.

tax credits will not have bden reassured by their contributions

:20:45.:20:49.

today. The honourable member for Dundee East raised a range of issues

:20:50.:20:54.

around the unfairness of tax credits, the honourable member for

:20:55.:20:58.

Sefton Central spoke about the Chancellor changing his mind on his

:20:59.:21:02.

own fiscal target, the slowdst recovery we have had on record as

:21:03.:21:06.

well is concerned from the business community. We had a very passionate

:21:07.:21:13.

speech from the honourable lember for Middlesbrough talking about the

:21:14.:21:17.

devastating impact of the government's lack of support for the

:21:18.:21:21.

steel industry on the familhes with losses of thousands of jobs and a

:21:22.:21:26.

lack of response on the fivd industrial asks from the stdel

:21:27.:21:30.

industry. The honourable melber for carbon East talked about thd impact

:21:31.:21:35.

of the government's policy on Wales. My honourable friend talked

:21:36.:21:40.

about the demise of the gredn industry, my honourable fridnd

:21:41.:21:46.

talked about eloquently abott a business case for stronger levels of

:21:47.:21:49.

investment in Britain for otr economy. And indeed, a final speech

:21:50.:21:55.

by my honourable friend, thd member for Lancaster and Fleetwood talked

:21:56.:21:58.

about the impact of the government's policies on wolen and

:21:59.:22:02.

young people. This has been an important debate as we moved into

:22:03.:22:05.

the final week before the publication of the spending review

:22:06.:22:09.

and Autumn Statement and it is a shame that despite repeated calls

:22:10.:22:14.

from the police, Shadow Chancellor, Shadow Home Secretary, Leaddr of the

:22:15.:22:19.

Opposition, warning of the scale of cuts to the police service, that

:22:20.:22:24.

this Chancellor has so far not committed to funding the police that

:22:25.:22:28.

we need and community polichng we need. What we have seen frol this

:22:29.:22:35.

Chancellor is a record of f`ilure to build a productive economy. A

:22:36.:22:39.

failure to meet his own defhcit target, borrowing ?200 billhon more

:22:40.:22:44.

than you planned in the last Parliament, a failure on

:22:45.:22:48.

productivity with the gap bdtween UK productivity per hour worked and the

:22:49.:22:53.

rest of the G7 being 20 points last year, the widest gap since 0991 And

:22:54.:22:58.

indeed, a failure on infrastructure investment, with Britain's

:22:59.:23:06.

infrastructure investment rdmains woefully inadequate. Progress on the

:23:07.:23:12.

Chancellor's flagship infrastructure project stalled. We know th`t

:23:13.:23:15.

British businesses still can't access the finances they medt with

:23:16.:23:21.

lending having fallen in evdry month since 2011 and latest figurds

:23:22.:23:27.

showing an annual fall in ldnding to SMEs of 0.9%. Manufacturing is

:23:28.:23:33.

struggling and the British dxport market share is falling

:23:34.:23:38.

relentlessly. The government's target of doubling exports by 2 20

:23:39.:23:44.

is met with ridicule and thdre is no better example of the Chancdllor's

:23:45.:23:48.

failure to support manufacttring with his inaction of supporting the

:23:49.:23:53.

British steel industry. It hs a high-tech, high skilled, high-paid

:23:54.:23:57.

industry in crisis with thotsands of jobs lost and tens of thous`nds at

:23:58.:24:05.

risk. We have also seen the public services are not saving the

:24:06.:24:08.

government's hands. We have seen waiting lists in the NHS rise by

:24:09.:24:13.

almost one billion and we h`ve seen the impending care crisis that will

:24:14.:24:17.

heap further pressure on our hospitals. They failed to address

:24:18.:24:21.

the housing crisis and now local government is set to see a new wave

:24:22.:24:25.

of cuts to local services ldading to the closure of children's sdrvices,

:24:26.:24:30.

putting social calendar hugd pressure, proposed public hdalth

:24:31.:24:34.

cuts could seek cuts to school nurses, sexual health and other

:24:35.:24:37.

essential services, the vit`l prevention work that helps ts all.

:24:38.:24:52.

Madam Deputy Speaker, the Chancellor's policies are htrting

:24:53.:24:57.

rather than helping and he has made the wrong choices. He is holding

:24:58.:25:04.

back the British economy instead of building a better future. L`st

:25:05.:25:07.

weekend we saw Labour campahgners out across the country camp`igning

:25:08.:25:13.

for a fair reversal to the tax credit cuts. Standing up for working

:25:14.:25:17.

families in their constituencies. Spreading the word and letthng

:25:18.:25:25.

everyone know that what the Tories are planning to do will makd the

:25:26.:25:29.

poor poorer and the rich richer It's not only low income falilies

:25:30.:25:37.

that will lose out. Money whll be sucked out of local economids from

:25:38.:25:44.

next April. The Trussell Trtst has warned that the tax credit cuts will

:25:45.:25:48.

lead to a substantial rise hn food bank use. The honourable melber for

:25:49.:25:55.

Stevenage boycotted a meeting with a Tory Treasury minister in hhs own

:25:56.:25:59.

constituency. He thought it was OK to turn up and not discuss the

:26:00.:26:05.

burning issue of tax credits. It has also been shown that tax cut credits

:26:06.:26:12.

will be cut the many familids, something the Prime Minister denied

:26:13.:26:19.

at the election. Last week, Martin Wolf, the distinguished coltmnist,

:26:20.:26:24.

said this was dishonestly presented. In his 20 11th btdget,

:26:25.:26:29.

the Chancellor promised to rebalance our budget and what has happened? --

:26:30.:26:40.

in his 2011 budget. The Chancellor's Britain is out of touch

:26:41.:26:45.

with other nations. The onlx country cutting support for renewables in

:26:46.:26:54.

favour of nonrenewable 's. The previously the government h`d a

:26:55.:26:57.

target to increase private `nd public sector RND. Latest official

:26:58.:27:08.

figures show we are at 1.67$, behind OECD and the EU average. Evdn the

:27:09.:27:15.

British chamber of commerce is calling on the Chancellor to change

:27:16.:27:21.

his latest fiscal chartered deficit target so he does not include

:27:22.:27:25.

spending on infrastructure `nd a wide range of economists ard

:27:26.:27:29.

starting to speak up against the Chancellor's economic choicds and

:27:30.:27:33.

why they are wrong for Brit`in. Labour's starting point is we need

:27:34.:27:38.

to do more to ensure a prosperous and secure future. Ensuring a fair

:27:39.:27:43.

deal and a chance for all to get on. We know that means the statd working

:27:44.:27:47.

with the private sector, investing for the growth and jobs of the

:27:48.:27:53.

future. We know access to those jobs means getting our education system

:27:54.:27:58.

rights, not a system where schools struggle to recruit and ret`in

:27:59.:28:02.

teachers or cut in further dducation and young people leave with less

:28:03.:28:09.

than they need to equip thel for the future. Rebalance our econoly and

:28:10.:28:14.

spread prosperity. The best way is to investing skills and technology.

:28:15.:28:23.

Companies need to go from bding local to global. That is wh`t

:28:24.:28:28.

Britain needs, backed up by help to make British people prosperous and

:28:29.:28:35.

secure. On this side of the house we are committed to balancing the

:28:36.:28:39.

books, but doing it in a fahr way. By investing in our future. Creating

:28:40.:28:44.

better skilled and better p`id jobs. That is good for Brithsh

:28:45.:28:48.

workers and when they spend their money, it is this the British

:28:49.:28:52.

business. The Chancellor's interventions may appear to be good

:28:53.:28:56.

politics, but all too often they turn out to be the wrong economic.

:28:57.:29:01.

His policies are hurting not helping Britain's businesses and working

:29:02.:29:05.

families. He's is short-terl cuts will prove to be a fourth economy.

:29:06.:29:09.

Labour will offer a real alternative on choices to support Britahn's

:29:10.:29:15.

businesses and workers and dquip them for the jobs of the future The

:29:16.:29:21.

Chancellor's short-term cuts will leave us honourable. There hs an

:29:22.:29:26.

alternative that is in the long term interests of Britain and I trge

:29:27.:29:30.

honourable members to vote with us today. Minister. Hear, hear. Thank

:29:31.:29:41.

you Madam Deputy Speaker. Protecting working people in Britain is what we

:29:42.:29:48.

set about in 2010. It is wh`t we fought the general election on

:29:49.:29:52.

earlier this year and it is what the British electorate has asked us to

:29:53.:29:55.

continue to be following thd decisive results of the May

:29:56.:30:04.

election, as we were reminddd by our honourable friends. Britain stands

:30:05.:30:12.

on four interlocked pillars. First, a stable economy and a long,term

:30:13.:30:16.

plan. Low inflation and low interest rates are poor productive

:30:17.:30:19.

investment. Second, back in business. Firms do people jobs and

:30:20.:30:25.

families economic security. Innovation generates economhc

:30:26.:30:30.

growth. And we know it is only business that can create thd wealth

:30:31.:30:34.

that affords us the quality public services we all value so much.

:30:35.:30:39.

Further, the right incentivds to work and support to be able to do so

:30:40.:30:43.

as we strive towards our go`l of full employment and forth, fiscal

:30:44.:30:48.

plan that eliminates our deficits are we face up to the challdnges of

:30:49.:30:52.

this generation in this gendration and not just leave an even bigger

:30:53.:30:56.

mountain of debt to our children and their children we were reminded by

:30:57.:31:03.

my honourable friend from Thornbury and Yeats. We have made important

:31:04.:31:09.

strides on all these fronts. We are cutting the jobs tax, cutting red

:31:10.:31:13.

tape business, creating record of apprenticeships. My honourable

:31:14.:31:19.

friend talked about the apprenticeship revolution. Since

:31:20.:31:23.

2010 the private sector has created almost 2.5 million jobs. We have

:31:24.:31:30.

more employment growth in the UK since 2010 than the entire Duropean

:31:31.:31:37.

Union put together. We have more women in work and real wages are

:31:38.:31:42.

rising at 3% a year. We are keeping more cash where it belongs, in the

:31:43.:31:45.

pockets of hard-working people. We are making the basic rate t`xpayer

:31:46.:31:55.

?905 better off a year throtgh increases in the personal allowance.

:31:56.:32:03.

There is tax-free childcare under universal credit. We have sdt out

:32:04.:32:10.

the path for sustainable but solid deficit elimination, so we live

:32:11.:32:15.

within our means and start paying down that debt. My honourable

:32:16.:32:25.

friends... I will, of coursd. The former chairman of the US Fdderal

:32:26.:32:30.

bank who has basically said he disagrees with the legislathon that

:32:31.:32:33.

says we should always have ` budget surplus because there is no

:32:34.:32:36.

flexibility to respond to another crisis. In other words, is ht inept?

:32:37.:32:46.

I have no message for the hdad of the Federal reserve apart from to

:32:47.:32:52.

say we inherited the largest deficit and we are bringing it down and we

:32:53.:32:55.

will continue to bring it down. If you don't pay down the debt in the

:32:56.:33:00.

good times, when will you ever do it? Madam Deputy Speaker, mx

:33:01.:33:04.

honourable friend from Cheltenham reminded us that when the fhnancial

:33:05.:33:08.

crisis hits the cupboard was bare because the structural deficit that

:33:09.:33:15.

his government hilltop in 2010, we started on a programme of bringing

:33:16.:33:21.

it down. Since then, despitd the oil price spike and the Eurozond crisis,

:33:22.:33:26.

we have half the deficit, btt there remains much more to be dond. We set

:33:27.:33:31.

out in some detail for the dlection and the summer budget what that

:33:32.:33:42.

would entail. Importantly, we are maintaining our commitment to the

:33:43.:33:45.

institutions that Britain h`s relied most upon. Our schools, our world

:33:46.:33:49.

leading national health of this Us where we need to make savings and

:33:50.:33:54.

next week my right honourable friend the Chancellor will set out the

:33:55.:33:59.

remaining details in the Autumn Statement along with a statdment

:34:00.:34:06.

from the office of fiscal responsibility. I can't pre,empt

:34:07.:34:10.

what my right honourable frhend will say next week. What we have set out

:34:11.:34:14.

is a new settlement for working Britain. The members are easily

:34:15.:34:20.

talked about some of what wd will be doing. Cashback the member for East

:34:21.:34:37.

Lea. We are doubling the frde childcare we are offering working

:34:38.:34:43.

families. We have frozen cotncil tax. Action this government has

:34:44.:34:48.

taken to support working falilies. I have very little time, but H want to

:34:49.:34:52.

respond to some of the important points made. The member who

:34:53.:34:58.

represents Middlesbrough Sotth and East Cleveland spoke powerftlly and

:34:59.:35:03.

he reminded us as we all know all too well that economic growth does

:35:04.:35:07.

not happen evenly everywherd and there can be places and sectors

:35:08.:35:10.

which faced significant difficulties. This is indeed a

:35:11.:35:17.

difficult and uncertain timd for many people who have been affected

:35:18.:35:23.

by what he covered. The govdrnment cannot control the world prhce of

:35:24.:35:29.

steel. We cannot cover the hnter at the of this subject here, which is a

:35:30.:35:35.

complex one, but a multi-million pound package has been put hn place

:35:36.:35:41.

for Redcar and Scunthorpe and he knows that the Business Secretary is

:35:42.:35:45.

fully in gauge to. I am so sorry that I can't because of the time. --

:35:46.:35:48.

fully in gauge to. My honourable friend for Monmouth

:35:49.:36:07.

reminded us that if you are not strong financially, you cannot be

:36:08.:36:10.

strong militarily or in your national security. The honotrable

:36:11.:36:19.

gentleman for Sefton and East Hampton spoke about investmdnt in

:36:20.:36:23.

terms of driving forward thd next phase of our economic growth and

:36:24.:36:27.

they are correct. The government is committed to spend ?100 million on

:36:28.:36:36.

infrastructure. There will be a strategic road fund for Britain The

:36:37.:36:43.

share of GDP will be higher this decade than under the period of the

:36:44.:36:48.

last Labour government. Fin`lly the honourable gentleman spoke `bout us

:36:49.:36:54.

exploiting the innovations that we make in this country in this

:36:55.:37:00.

country, and that is improvhng in some of the ways that my honourable

:37:01.:37:05.

friend Bob Halsham listed. We must keep the focus on that. Being in

:37:06.:37:10.

government brings with it responsibilities. Every difficult

:37:11.:37:17.

decision we have taken to gdt this country back on track was opposed by

:37:18.:37:21.

the party opposite. Those ddcisions were the right one and they put us

:37:22.:37:28.

on a path to strengthen our nation's prospects. We have got to

:37:29.:37:32.

the stage with the economy hs turning the corner. The defhcit is

:37:33.:37:38.

down by a half, record numbdrs in work, living standards are rising,

:37:39.:37:42.

low inflation, but the job hs not done. Complacency, losing focus

:37:43.:37:51.

losing fiscal discipline allost led our country to disaster in 2008 It

:37:52.:37:55.

will be the very worst thing we could do now for the economhc

:37:56.:38:00.

security of Great Britain. Balancing the books is not a case of dry

:38:01.:38:06.

economic, it is a moral impdrative. It is vital to our long-terl

:38:07.:38:11.

economic security and it is the foundation of the security of every

:38:12.:38:15.

family in Britain. It is only through this government's long-term

:38:16.:38:20.

economic plan that we can ddliver and continued prosperity th`t

:38:21.:38:25.

Britain deserves. I urge thd house to reject this motion. The puestion

:38:26.:38:38.

is as on the order paper. Dhvision. Clear the lobby.

:38:39.:40:35.

The question is as on the order paper. As many as are of thd

:40:36.:40:39.

opinion, say "aye". To the contrary, "no". Tellers for the ayes `nd

:40:40.:40:48.

tellers for the noes. Order! Order. The ayes to the

:40:49.:51:25.

right, 249. The noes to the left, 298. The ayes to the right, 249 The

:51:26.:51:41.

noes to the left, 298. I thhnk the noes have it. The noes have it.

:51:42.:51:53.

Unlock. We now come to the lotion in the name of the Leader of the

:51:54.:52:00.

Opposition on further education Order. Members should not bd walking

:52:01.:52:04.

in front of the dispatch box when someone is about to speak. The

:52:05.:52:10.

motion in the name of the Ldader of the Opposition on further

:52:11.:52:17.

education. Lucy Powell to move. Tank you. I beg to move the motion in my

:52:18.:52:21.

name and in those of my right honourable and honourable friends.

:52:22.:52:26.

Madame Deputy Speaker, a good education shouldn't be a luxury the

:52:27.:52:31.

preserve of those living within a certain postcode or those who can

:52:32.:52:34.

afford it. It should be somdthing everyone in this country can get. If

:52:35.:52:38.

we don't educate the next gdneration properly, we will not securd

:52:39.:52:43.

Britain's future. These are not my words, they are the words of the

:52:44.:52:46.

Prime Minister just before the election, with which I

:52:47.:52:50.

wholeheartedly agree. I am sure every parent and member of the

:52:51.:52:54.

public would agree that the route to success for a country lies hn

:52:55.:52:57.

ensuring the best possible dducation for our children. Education is a

:52:58.:53:01.

down payment on the future success of our economy. I don't doubt that

:53:02.:53:08.

the right honourable lady, the Secretary of State, agrees with me

:53:09.:53:12.

as well. Yet as we approach the comprehensive spending revidw next

:53:13.:53:15.

week, I am concerned that she is losing the argument with her

:53:16.:53:18.

Treasury colleagues. That is why we called this debate, to give her

:53:19.:53:24.

moral support in her battle to stop further and damaging wrong-headed

:53:25.:53:28.

cuts to the education budget. But in all honesty, I am a Plex th`t we are

:53:29.:53:33.

having to have this debate `t all. -- I am a Plex. Conservativd

:53:34.:53:36.

rhetoric at the last election may have fooled many parents th`t the

:53:37.:53:39.

whole education budget was being protected, when the reality is far

:53:40.:53:49.

from this. If the principle exists that education is so import`nt that

:53:50.:53:53.

we should shield the schools budget, and we should, why does this

:53:54.:53:59.

principle stop at GCSEs and not extend to A-levels and other post-16

:54:00.:54:04.

or vocations? This is the cdntral point, and I hope we can have a real

:54:05.:54:09.

answer from the Secretary of State today. Why does the governmdnt value

:54:10.:54:13.

less education of 16 to 19-year-olds? Why does the

:54:14.:54:17.

honourable lady think her p`rty presided in government during a

:54:18.:54:22.

period of economic growth, rising numbers of youth unemployment? Under

:54:23.:54:29.

this government, we have thd lowest number of NEETs in 15 years. It is

:54:30.:54:36.

not the biggest investment hn post-16 education, and we whll see

:54:37.:54:42.

what happens to those budgets in the forthcoming comprehensive spending

:54:43.:54:47.

review. Let's look at the context here. Over the last Parliamdnt, 16

:54:48.:54:51.

to 19 funding fell by 14% in real terms. Many efficiencies have

:54:52.:54:57.

already been delivered. This is on top of increasing the age that

:54:58.:55:00.

children stay in education or training until they are 18. At the

:55:01.:55:05.

same time, we want young people to go on and study A-levels or high

:55:06.:55:07.

quality apprenticeships, rahse attainment in literacy and numeracy

:55:08.:55:12.

and delivering new curricultm. So in this context, how does the Secretary

:55:13.:55:17.

of State envisage that school sixth form colleges and further education

:55:18.:55:20.

colleges will be able to make further cuts of between 25 `nd 0%

:55:21.:55:23.

over this Parliament? Earlier this month I was delighted

:55:24.:55:34.

to be at Central Sussex College where they are expanding thdse stem

:55:35.:55:38.

subjects facility they have. It is a new bill that will provide lany more

:55:39.:55:44.

courses for local people. Does she not welcome back? I absolutdly

:55:45.:55:49.

welcome that, but it sounds like it is the exception to what is

:55:50.:55:56.

happening in many other parts of the country. I have received a copy of

:55:57.:56:05.

the letter written by over ` chairs of the colleges. It laments the

:56:06.:56:12.

sudden reductions, not once but twice this year in funding that

:56:13.:56:20.

makes it impossible to plan. Would my honourable friend agree that this

:56:21.:56:26.

is no way to run a well store let alone our education? It is not just

:56:27.:56:35.

every colleges but six form colleges as well. Some of our excelldnt

:56:36.:56:39.

institutions will say the s`me. I give way. It is the scale of the

:56:40.:56:48.

cuts. Taking the sample of the two FV colleges in Coventry that have

:56:49.:57:02.

written to me, they are talking of a cut in courses, redundancies and a

:57:03.:57:14.

cut in funding. These cards are unprecedented and unmanageable.

:57:15.:57:16.

Absolutely, and I will go on to say more about that shortly. No, I am

:57:17.:57:22.

going to make some progress and I will give way shortly. Thesd cuts

:57:23.:57:28.

are between 25 and 40% over this parliament and will have a

:57:29.:57:31.

devastating impact on the opportunities they offer for young

:57:32.:57:47.

people and on our need to btild on industry. All the evidence shows

:57:48.:57:55.

that the investment in 16-18 education is not only writes, but it

:57:56.:58:04.

will reap dividends. High skilled economies invest heavily in 16- 9

:58:05.:58:14.

-year-olds. Investing in literacy in that age group is linked to higher

:58:15.:58:17.

productivity. Research shows that the economic returns for investing

:58:18.:58:27.

in 16-19 education is... Yes, I will give way. What has she learned from

:58:28.:58:33.

the high levels of youth unemployment in 2009-10 when Labour

:58:34.:58:41.

left office and why won't pdople able to get apprenticeships then.

:58:42.:58:49.

Answer the question. Give md a chance. The honourable membdr will

:58:50.:58:53.

remember that when Labour ldft office we were in the middld of a

:58:54.:58:58.

typical global recession, btt our record in office for the vast

:58:59.:59:03.

majority of time was an excdllent one in terms of use payment and

:59:04.:59:09.

educational achievement. I `m sure my honourable friend will rdmember

:59:10.:59:16.

the future jobs fan that was set up by Labour in stark contrast to the

:59:17.:59:22.

party opposite to when they came in in 2010 they cut it off and they cut

:59:23.:59:27.

off access to certain levels of training. I know that we will hear

:59:28.:59:36.

from the benches opposite that the spending decisions are necessary to

:59:37.:59:41.

deliver what they be further to that about what they referred to as -

:59:42.:59:46.

what they referred to as thdir long-term economic plan, but

:59:47.:59:52.

investing in education and skills helps our economy to grow and

:59:53.:59:57.

reduces the deficit. The reverse is true. Slashing and burning dducation

:59:58.:00:05.

will lead to greater reliance on the state for unqualified young people.

:00:06.:00:13.

Cutting education spending `t the alter of deficit reduction hs a

:00:14.:00:15.

false choice and is economic stupidity. I am going to give way

:00:16.:00:26.

here. I thank my honourable friend for giving way. She is making some

:00:27.:00:32.

important points regarding short-sighted cuts to the education

:00:33.:00:38.

budget, but in the North we have our part to play in delivering the

:00:39.:00:44.

Chancellor's northern powerhouse. What does she think the imp`ct will

:00:45.:00:47.

be on progressing the northdrn powerhouse if we cut back

:00:48.:00:50.

significantly on the investlents we need to see in productivity in

:00:51.:00:55.

places like Barnsley and Sotth Yorkshire? She makes an excdllent

:00:56.:01:01.

point and if you speak to anybody who is overseeing some of the big

:01:02.:01:05.

infrastructure projects unddrway at the moment, they will tell xou their

:01:06.:01:10.

biggest problem is meeting the skills gap they have, so it is

:01:11.:01:19.

serious issue. If the party opposite believes that education is ` public

:01:20.:01:27.

good, it is baffling why 16,19 is unprotected and facing masshve

:01:28.:01:31.

reductions. Let us more det`il what is happening on the ground `nd the

:01:32.:01:36.

potential impact of the potdntial review. I will take my last

:01:37.:01:44.

intervention. We'll be honotrable lady join me in condemning the cuts

:01:45.:01:52.

to further education in Walds and the likely loss of a thousand jobs

:01:53.:01:56.

which is leading to industrhal action in Wales. This is no way to

:01:57.:02:02.

run a welcome stall that alone a country. There will be more

:02:03.:02:10.

devastation coming down the track as the Barnett formula will have more

:02:11.:02:20.

impact for Wells and Scotland. The budget has been down by 14%.

:02:21.:02:31.

Principles are trying to mahntain high levels and people don't feel

:02:32.:02:38.

that this government values their education. This is not

:02:39.:02:46.

scaremongering. Chairs of ftrther education colleges wrote to the

:02:47.:02:53.

governments expressing their concerns. Already, six form colleges

:02:54.:02:56.

and further education colleges are dropping courses and reducing hours.

:02:57.:03:01.

It is not beauty courses of fashion courses that members office it -

:03:02.:03:09.

opposite might think going first, it is the A-level courses. Herd we have

:03:10.:03:16.

the government overseeing the loss of A-level courses in maths and

:03:17.:03:23.

modern foreign languages. What government has done that? Sdcondly,

:03:24.:03:28.

the raising of the particip`tion age to 18 comes with extra pressure on

:03:29.:03:41.

India ched tuitions -- one institutions during a period of such

:03:42.:03:46.

significant change you would expect the government would support

:03:47.:03:51.

teachers with the transition to a new system. In New South Wales and

:03:52.:04:01.

Ontario, additional resourcds were provided to deal with the r`ys in

:04:02.:04:14.

the participation age. We h`ve had the opposite. A recent report has

:04:15.:04:17.

found that from next year A,level students face the prospect of being

:04:18.:04:22.

taught for just 15 hours a week That is three hours a day bdcause of

:04:23.:04:30.

the falling funding since 2011. In Shanghai, Singapore and othdr high

:04:31.:04:35.

performing education systems, six formers are taught for more than 30

:04:36.:04:39.

hours a week. This government is downgrading our education sxstem to

:04:40.:04:46.

part-time, leaving our young people behind their counterparts abroad.

:04:47.:04:56.

Thirdly, the government's rdviews that the viability high performing

:04:57.:05:04.

institutions in a sector th`t the education secretary herself has

:05:05.:05:07.

described as fragile. It is impossible for these reviews not to

:05:08.:05:17.

be seen as cuts to the sector. It is ridiculous to look at only half the

:05:18.:05:23.

provision and ignore half the institutions that are in peril. Six

:05:24.:05:37.

forms and other institutions are not included but are most honourable. At

:05:38.:05:42.

the same time the government is content to put many high performing

:05:43.:05:46.

an excellent colleges at risk. Our sixth form colleges are outstanding

:05:47.:05:55.

providers of education. Thex deliver strong outcomes for young pdople at

:05:56.:06:02.

a lower costs to the public purse than academies. How much more money

:06:03.:06:08.

does she want to spend wherd is it coming from? I think the should be

:06:09.:06:13.

out what costs will these ctts come at with people getting lower paid

:06:14.:06:19.

and lower skilled jobs and relying for a longer period of time on the

:06:20.:06:26.

state. For example, there is an excellent six form provision in

:06:27.:06:28.

Greater Manchester in my own area which is currently undergoing an

:06:29.:06:36.

area review. In Wigan, therd are two colleges that have some of the best

:06:37.:06:41.

value added in the country `nd get children from all backgrounds the

:06:42.:06:44.

highest grades in A-levels. In other parts of the country further massive

:06:45.:06:54.

reductions in funding will see good six form colleges and good school

:06:55.:07:12.

sixth forms close. I will ghve way. Do you agree with me that ftrther

:07:13.:07:16.

education colleges of furthdr disadvantaged? They have to pay the

:07:17.:07:22.

80 whereas free schools and six forms don't. That is an excdllent

:07:23.:07:26.

point and she is absolutely right to raise it. I will give way one last

:07:27.:07:32.

time and then make progress. South Devon College in my constittency is

:07:33.:07:35.

an example of a fantastic form college doing amazing work hn the

:07:36.:07:41.

further education sector. Everyone across the house hopes the

:07:42.:07:45.

Chancellor will be as generous as possible to further education, but

:07:46.:07:49.

will she agree that one of the other challenges they face is thex need a

:07:50.:07:53.

multi-ended settlement to m`ke forward plans. Wollscheid join me in

:07:54.:07:59.

asking about to be introducdd? Absolutely. That is a sensible

:08:00.:08:04.

suggestion and I hope her front bench will listen to it. It is not

:08:05.:08:08.

just the nature of the cuts, but it is that they are coming so late in

:08:09.:08:16.

the cycle. On these figures Diks forms went proud beacons of success

:08:17.:08:25.

they are now. -- six forms went be the proud beacons of success they

:08:26.:08:29.

are now. I will take one more intervention. I thank you for your

:08:30.:08:37.

generosity. She has talked repeatedly about the import`nce of

:08:38.:08:41.

budgets and that is one contribution, but is she not also

:08:42.:08:50.

aware is one of the key things is innovative intervention is needed?

:08:51.:08:58.

There is some good best practice in this area, but as the previous

:08:59.:09:03.

comment suggests, it is hard to innovate when you are getting short

:09:04.:09:10.

timelines for your budget sdttlement in a digital funding climatd. -

:09:11.:09:19.

difficult funding climate. The very last time. I just wanted to say my

:09:20.:09:28.

honourable friend has referred to international experience. Investing

:09:29.:09:36.

in literacy and numerous thd post-16 is linked to higher producthvity in

:09:37.:09:39.

their working lives. But shd agree with me that the wrong head of

:09:40.:09:48.

policy, the party opposite, is threatening our economic success?

:09:49.:09:54.

Absolutely. Raising producthvity is the key challenge our econoly faces

:09:55.:10:00.

and I don't understand a government that says it is right to protect

:10:01.:10:05.

education spending up to 16, but not up to 18 and 19 when it is now

:10:06.:10:11.

compulsory for people to attend it. I hope the Secretary of State can

:10:12.:10:15.

explain that today. I will lake some progress now. In conclusion, I think

:10:16.:10:22.

we can all agree that investment in education is a good thing. H hope

:10:23.:10:26.

the Secretary of State can dxplain how further education and shxth form

:10:27.:10:31.

colleges are to deal with ftrther significant reductions on top of the

:10:32.:10:34.

efficiencies they have alre`dy delivered. I hope she is fighting a

:10:35.:10:38.

rearguard action against thd Treasury, and in this she h`s my

:10:39.:10:42.

support. I hope she will john us in supporting this motion, which

:10:43.:10:45.

recognises that an education journey for every child now continuds till

:10:46.:10:51.

19. Good and outstanding sixth forms and every colleges are under

:10:52.:10:54.

threat. Expensive causes like A-levels and science and language is

:10:55.:10:58.

being dropped. Teaching hours are half of those in our compethtive

:10:59.:11:03.

countries. This is the realhty of 16 to 19 education today. As a parent,

:11:04.:11:07.

this gives me huge cause for concern. As a politician, I believe

:11:08.:11:11.

cuts on this scale are falsd economy which would damage our Nativity our

:11:12.:11:16.

economy and our ability to pay down the deficit. I commend this motion

:11:17.:11:21.

to the House. The question hs as on the order paper. Secretary of State.

:11:22.:11:32.

Thank you. I thought at one point in the honourable lady's speech, we

:11:33.:11:36.

might have a danger of cross-party consensus picking out, although just

:11:37.:11:40.

as she nearly veered towards that, she veered away when confronted by

:11:41.:11:45.

good news stories about the post-16 sector. I also like the way she

:11:46.:11:55.

mentioned the long-term economic plan, although probably through

:11:56.:11:59.

gritted teeth. It was a ple`sure to respond to this debate. I think it

:12:00.:12:05.

is something we can all agrde on. A vibrant post-16 education sdctor

:12:06.:12:08.

gives young people the skills they need to succeed in life, and it is a

:12:09.:12:12.

key part of this government's commitment to governing as

:12:13.:12:14.

one-nation and extending opportunity throughout the country. I al sad to

:12:15.:12:20.

say, though, it is becoming an unfortunate habit that the

:12:21.:12:22.

honourable lady seems to usd all her public appearances to talk down the

:12:23.:12:26.

significant achievements and the good things happening in our

:12:27.:12:31.

education system. First, it was undermining the achievements of

:12:32.:12:35.

academies, including one in her constituency. Secondly, it was

:12:36.:12:39.

scaremongering on teacher recruitment. Now the opposition is

:12:40.:12:42.

trying to create a sense of panic in the post-16 sector. And yet again,

:12:43.:12:49.

another opposition day motion reveals that the party opposite we

:12:50.:12:58.

heard from the Leader of thd Opposition earlier, still bdlieves

:12:59.:13:00.

in the existence of the Labour Party's magic money tree. I speak as

:13:01.:13:10.

somebody who got to univershty from FE and worked as a lecturer in FE.

:13:11.:13:16.

Barnsley in my constituency is outstanding. Given what she has just

:13:17.:13:19.

said, can she guarantee that Barnsley College will not bd damaged

:13:20.:13:25.

in any way in terms of the services it provides for local peopld by the

:13:26.:13:30.

government's cuts to the institution of the forthcoming period? The

:13:31.:13:37.

honourable lady was doing a great job of talking about the excellence

:13:38.:13:46.

of a college in her constittency, and then tipped off into thd word

:13:47.:13:48.

cuts before we have even had the spending review extra week. So I

:13:49.:13:51.

think the honourable lady otght to wait and see what the spendhng

:13:52.:13:58.

review is... Let me make sole arguments, and then I will `ccept

:13:59.:14:04.

some interventions. One of the points the honourable lady opposite

:14:05.:14:06.

mentioned in her opening relarks was, why is it that under this

:14:07.:14:10.

government and the Coalition Government of the last Parlhament,

:14:11.:14:15.

we have pirate has spending on five to 16 education? -- we have

:14:16.:14:22.

prioritised spending on this because when we had a situation where

:14:23.:14:28.

children leaving primary school one in three were not able to rdad,

:14:29.:14:33.

write or add up properly. That is where, in a difficult econolic

:14:34.:14:36.

climate, the decision was t`ken to put the education investment

:14:37.:14:40.

particularly. If you are not literate and numerous by thd time

:14:41.:14:45.

you leave primary school, you are far less likely to get good GCSEs,

:14:46.:14:49.

less likely to progress into higher education, and apprenticeshhp or the

:14:50.:14:57.

world of work. By taking aw`y the funding now, you are damaging those

:14:58.:15:00.

children who do not have those skills and rely on FE to achieve

:15:01.:15:07.

those qualifications. But the reason those children don't have those

:15:08.:15:11.

skills is because they were educated under a Labour government, H would

:15:12.:15:24.

argue. I thank the Secretarx of State. She said the review has not

:15:25.:15:28.

been announced yet, but it hs not magic out of the ether, so can we

:15:29.:15:31.

cut to the quick? With the honourable lady tell the Hotse what

:15:32.:15:37.

cuts she has offered to accdpt to the post-16 budget, and how she

:15:38.:15:40.

squares that with the treatlent of funding for education up to 16? It

:15:41.:15:46.

is a nice try, but it would be like the honourable gentleman sending his

:15:47.:15:49.

election campaign leaflets to the opposition and saying, thesd are the

:15:50.:15:52.

argument is I will make. Thd honourable gentleman will know that

:15:53.:15:55.

no person reveals their hand before the final announcement extr` week.

:15:56.:16:05.

-- next week. I am going to make some progress. The honourable lady

:16:06.:16:11.

also talked about the priorhtisation of spending on five to 16 r`ther

:16:12.:16:16.

than 16 to 19. I wonder if she has checked the figures for her own

:16:17.:16:20.

party in the last Parliament when they were in government. Per pupil

:16:21.:16:26.

student funding increased twice as fast for those aged five to 16

:16:27.:16:32.

between 2005-6 and 2010-11 `s it did for those in 16 to 19 education the

:16:33.:16:47.

very thing she accuses us of doing. Is there any information my right

:16:48.:16:50.

honourable friend has which will enable us to judge whether lore

:16:51.:16:53.

children are now in a good or outstanding school, and what

:16:54.:16:57.

achievements are being made as a result of that investment ptt in at

:16:58.:17:01.

a difficult time by the last government? My honourable friend is

:17:02.:17:10.

looking at the positives. I am delighted to say that schools in

:17:11.:17:16.

England and Wales over 82% `re now rated good or outstanding, `nd

:17:17.:17:22.

increases 2010 -- and incre`se since 2010. More students are doing maths

:17:23.:17:27.

and more students are learnhng to read well and confidently bx the end

:17:28.:17:32.

of premise go. More students are doing well by the end of prhmary

:17:33.:17:35.

school leading into secondary school. Really good progress is

:17:36.:17:40.

being made, despite the difficult economic climate of the last

:17:41.:17:49.

Parliament. The opposition hs making the case that our colleges `re not

:17:50.:17:53.

giving enough contact hours to students, which I thought w`s a

:17:54.:18:00.

surprising criticism. With the Secretary of State confirmed that

:18:01.:18:02.

when students take advanced level studies, they need time for private

:18:03.:18:06.

reading and problem-solving as well as time with teachers, and H presume

:18:07.:18:12.

that is what colleges are doing I thank my honourable friend. He is

:18:13.:18:17.

right. Those post-16 will h`ve a mixture of face-to-face tuition

:18:18.:18:20.

study in smaller and larger groups, and their own study time, which

:18:21.:18:31.

prepares them for the next. 160 hrs in labour them to take A-levels How

:18:32.:18:40.

would the Secretary of Statd respond to Professor Alison Woods'

:18:41.:18:45.

suggestion that Britain's skilled workers may vanish into history if

:18:46.:18:48.

looming cuts to further education go-ahead? I would say that we have

:18:49.:18:55.

the support of that professor in the last Parliament to get rid of 3 00

:18:56.:18:59.

qualifications that did not prepare our young people for the world of

:19:00.:19:02.

work at all. And the subjects I have been talking about, the cord

:19:03.:19:06.

subjects that we need for the future, that is what our edtcation

:19:07.:19:15.

system is focusing on. The professor is also on our panel. The rdason we

:19:16.:19:28.

spent almost the same amount servicing our debt as we do on the

:19:29.:19:32.

entire schools budget is because of the financial mismanagement of the

:19:33.:19:39.

party opposite. They have forced us to make difficult decisions to

:19:40.:19:41.

balance the books and live within our means. If we did not, the tenet

:19:42.:19:45.

would have been for the education system to fall into the chaos we

:19:46.:19:49.

have seen in the countries which failed to balance the books.

:19:50.:19:52.

Thousands of schools closed in Greece. Teachers' pay slashdd in

:19:53.:19:57.

Greece, Ireland, Portugal and Spain, an exodus of talent. It's the

:19:58.:20:05.

honourable lady surprised that nobody has yet mentioned our

:20:06.:20:09.

ambitions for apprenticeships? million of them by 2020, of which

:20:10.:20:14.

there is already a signific`nt increase in my own constitudncy My

:20:15.:20:19.

honourable friend is pre-empting what I was about to come to. I would

:20:20.:20:24.

like to say I am surprised that the party does it have not menthoned

:20:25.:20:27.

apprenticeships, that of cotrse they would not want to bring

:20:28.:20:31.

attention to our track record in delivering double the number of

:20:32.:20:35.

apprenticeships that the last Labour government did. What we did here

:20:36.:20:44.

from one of the members opposite was about youth unemployment. In 20 0,

:20:45.:20:49.

youth unemployment had risen by a staggering 40% under the last Labour

:20:50.:20:55.

government. That was the legacy of the party opposite when it comes to

:20:56.:20:59.

young people's life chances, a legacy we have painstakinglx

:21:00.:21:03.

reversed, to the extent that we have the lowest proportion of 16 to

:21:04.:21:07.

18-year-olds Neets and the lowest need to write in a decade. Having

:21:08.:21:16.

seen the nonsense, back of ` fag packet calculation is about the

:21:17.:21:18.

spending review that the honourable lady attempted to brief out last

:21:19.:21:24.

week, I am more relieved th`n ever that her hands are nowhere near the

:21:25.:21:28.

public finances. We have protected the schools budget because we know

:21:29.:21:31.

that education is the best investment we can make in the future

:21:32.:21:43.

of our country. I am going to make some progress. Our analysis shows

:21:44.:21:50.

that the boost in the number of pupils getting good GCSE gr`des in

:21:51.:21:54.

England since 2010 is estim`ted at 1.3 billion powers to the country's

:21:55.:22:03.

economy. Pupils who achieved five or more good GCSEs including English

:22:04.:22:05.

and maths as their highest qualifications were each ad on

:22:06.:22:07.

average ?100,000 more to thd economy over a lifetime than someond with no

:22:08.:22:13.

qualifications. Had the opposition chosen to have this debate `fter

:22:14.:22:16.

next week, we could have had an informed debate about the post- 6

:22:17.:22:21.

settlement for the next four years. But they didn't choose that, they

:22:22.:22:28.

chose to have a scare debatd today. -- a scaremongering debate. I will

:22:29.:22:31.

not take any more interventhons until I have made some more

:22:32.:22:37.

arguments. We cannot have any sensible debates. Order! Thd debate

:22:38.:22:44.

has so far been well-behaved. I was about to say we are not in ` sixth

:22:45.:22:49.

form college, but my goodness, a sixth form college would be better

:22:50.:22:53.

behaved than this. The right honourable lady must be heard,

:22:54.:22:58.

otherwise no one will be able to argue against her. Secretarx of

:22:59.:23:05.

State. I want to recognise the enormous success of the post-16

:23:06.:23:09.

sector in the last Parliament. .4 million apprenticeships starts for

:23:10.:23:13.

more young people than ever before. 97% of young people now studying

:23:14.:23:18.

English and maths at 16 to 09 who did not achieve good passes at the

:23:19.:23:23.

age of 16. New qualifications rather than the thousands of worthless

:23:24.:23:29.

courses like balloon artistry. This is the legacy of the last fhve years

:23:30.:23:32.

of this government's approach to growth and skills, and it is a

:23:33.:23:37.

record I are proud to defend. Ensuring our young people h`ve the

:23:38.:23:41.

skills they need to succeed, and increasingly globalised labour force

:23:42.:23:47.

is vital to productivity and our plans for 16 to 19 education lie at

:23:48.:23:51.

the heart of our productivity drive. The plan published at the start of

:23:52.:23:54.

this government by my right honourable friend the Chancdllor and

:23:55.:23:58.

the Secretary of State for the youth department enshrine the rold of an

:23:59.:24:01.

improved 16 plus skill systdm in driving up our nation's

:24:02.:24:05.

productivity, with rapid technological progress and greater

:24:06.:24:07.

global competition, the skills we give the next narration are

:24:08.:24:11.

fundamental to the UK's futtre growth. In the context of the 1 to

:24:12.:24:20.

19 skills, if the honourabld lady wants to see physical evidence that

:24:21.:24:23.

gives the lie to the opposition s case that it is all going wrong I

:24:24.:24:28.

invite her and the Shadow Education Secretary Ashford, where after years

:24:29.:24:33.

of delay, a new FE colleges being built to open in 2017 to provide

:24:34.:24:38.

precisely the kind of skills that we know all our young children need for

:24:39.:24:42.

the next generation, planned under the previous government and built

:24:43.:24:44.

under this government. I am delighted to hear it and only

:24:45.:25:04.

last week I was opening the new sixth form college in my

:25:05.:25:10.

constituency. I will give w`y. Lambeth College in my consthtuency

:25:11.:25:15.

has stop teaching English as a second language. They have stop

:25:16.:25:36.

teaching ESOL... Order. The secretary of state has got the gist

:25:37.:25:42.

of it. I would just say to the honourable lady that what she is

:25:43.:25:45.

talking about is the adults skills budget. What we are debating today

:25:46.:25:54.

is 16-19. She would agree that we want every single pound of taxpayers

:25:55.:25:57.

money that we spending government to work as hard and effectivelx as

:25:58.:26:05.

possible. No, I am going to make some progress. Throughout the globe

:26:06.:26:09.

nations are investing in high quality technical skills and reaping

:26:10.:26:12.

the reward through high productivity and living standards. This

:26:13.:26:29.

government has developed... Apprentices are a key part of some

:26:30.:26:32.

of the most successful school systems across the world. I will

:26:33.:26:39.

give way. In my constituencx we have great examples of apprenticdship

:26:40.:26:42.

schemes being run by a neighbouring college, businesses and othdr

:26:43.:26:48.

providers. Will my right honourable friend join me in thanking these

:26:49.:26:51.

organisations for the fantastic job they are doing in creating

:26:52.:26:56.

apprenticeships which are hdlping us to deliver the skills... Order. It

:26:57.:27:05.

is not a speech. Secretary of state. Again she speaks with eloqudnce

:27:06.:27:25.

about her own constituency. Around the world... I am not going to take

:27:26.:27:30.

any further points at the moment. Around the world apprenticeships

:27:31.:27:34.

have been seen as a crucial way to develop the skills needed bx

:27:35.:27:42.

employers. We have put control of apprenticeship funding in the hands

:27:43.:27:46.

of employers. There needs to be a step change in funding. We will

:27:47.:27:50.

introduce a levy on large elployers to fund the apprenticeships. This

:27:51.:27:59.

follows examples of levies that are in place in France, Denmark and over

:28:00.:28:08.

50 countries. Professor ACC@ Wolf has set that out in a recent report

:28:09.:28:13.

and it is time for us to do it as well. -- Professor ACCA Wall. These

:28:14.:28:18.

opportunities need to be av`ilable across all sectors of the economy. I

:28:19.:28:29.

will give way. Would she consider its high-quality apprenticeship to

:28:30.:28:35.

go into a Sandwich shop for two or three days a week to learn how to

:28:36.:28:39.

use a cash register because that is the current offer of an

:28:40.:28:42.

apprenticeship that I'm aware of where somebody goes into th`t kind

:28:43.:28:53.

of an environment? Firstly, I do think she should be undermined in

:28:54.:28:57.

those who do that kind of work. They are serving our economy verx well.

:28:58.:29:04.

More importantly, those are the kinds of apprenticeships th`t

:29:05.:29:06.

happened under her party in government. We performed thd quality

:29:07.:29:12.

and the demands for training. That is why I have launched the

:29:13.:29:18.

trailblazer apprenticeships. Rather than knocking the opportunities she

:29:19.:29:24.

should be talking them up. Our reforms are leading to qualhty

:29:25.:29:30.

apprenticeships that providd exactly the skills, knowledge and bdhaviour

:29:31.:29:34.

required by the workforce of the future. In the last governmdnt we

:29:35.:29:44.

swept away the occasional -, vocational apprenticeships that

:29:45.:29:46.

would not lead to a job. We are going further. We will simplified

:29:47.:29:57.

the current system to make sure that the new system provides the skills

:29:58.:30:08.

for the 21st-century. New routes will be designed to lead to further

:30:09.:30:15.

education. It will also takd young people from compulsory school into

:30:16.:30:21.

employment. Young people taking one of these routes will be abld to

:30:22.:30:24.

specialise in their chosen fields, then a work placement was in college

:30:25.:30:32.

and then move into a work placement when ready. We are working with Lord

:30:33.:30:43.

Sainsbury and we are grateftl to the panel members. The government will

:30:44.:30:51.

work with the panel to improve technical and professional dducation

:30:52.:30:53.

making sure all people follow a programme of study that leads to the

:30:54.:31:02.

world of work. For many young people, academia will be thdir

:31:03.:31:14.

path. A-levels will provides the appropriate foundation for degree

:31:15.:31:20.

study. We will make sure th`t young people spend less time in exams and

:31:21.:31:26.

more time learning and studxing A-levels will return to the gold

:31:27.:31:40.

standard they have before. The sector has the opportunity to shape

:31:41.:31:46.

its own future. Apprenticeships drove alone will provide an income

:31:47.:31:59.

stream for some colleges and some colleges receive 44% of thehr income

:32:00.:32:07.

from apprenticeships. To support institutions to do this, we have

:32:08.:32:11.

announced every reviews. I `m not going to give way. The gentleman has

:32:12.:32:23.

already had one intervention. Area reviews will be driven by local

:32:24.:32:28.

leadership and will support collaboration, or to the benefit of

:32:29.:32:34.

young people in these institutions. Throughout the provider basd these

:32:35.:32:38.

reviews will lead to improvdd engagement to share resourcds and

:32:39.:32:49.

achieve financial footing that is stable for the future. We are

:32:50.:32:59.

grateful for the constructive engagement and look forward to close

:33:00.:33:02.

joint working as we completd all reviews by March 2016. We'll will go

:33:03.:33:22.

further, ignoring the doom `nd gloom from the party opposite. Each and

:33:23.:33:25.

every student will have the chance to realise their full potential and

:33:26.:33:32.

be all they can be. Post 16,19 education is essential and we need

:33:33.:33:39.

to fulfil the full potential of every young person. I asked the

:33:40.:33:51.

house to reject the motion. Order. It will be obvious, well, it will be

:33:52.:33:55.

obvious if anyone stood up indicating they wanted to speak

:33:56.:33:59.

Tank you. It will be obvious to the house at great number of people want

:34:00.:34:03.

to speak and there is limitdd time available. Therefore I will have two

:34:04.:34:10.

imposed after the next speaker, who is the SNP spokesman, a timd limit

:34:11.:34:19.

of six minutes. Carol Monaghan. Thank you. I don't think thdre is

:34:20.:34:23.

anyone in this house who wotld dispute that colleges play ` crucial

:34:24.:34:29.

role in providing employability skills for young people. Thd cuts to

:34:30.:34:33.

funding for 16-19 education is leading to cuts in courses `nd cuts

:34:34.:34:38.

to courses which are key to productivity is a serious issue and

:34:39.:34:43.

must be addressed and appropriately funded. I met with NASUWT this

:34:44.:34:59.

morning. I was told that thd concerns that the sector has been

:35:00.:35:03.

entirely unprotected and was specifically targeted for ctts in

:35:04.:35:09.

the 2010 comprehensive spending review. But 72% of sixth form

:35:10.:35:14.

colleges have been forced to drop key courses as a result of the cuts

:35:15.:35:19.

today. The area reviews are causing distress and disillusionment to

:35:20.:35:28.

starve in colleges. The Secretary of State has pre-empted the

:35:29.:35:35.

comprehensive spending revidw with her area reviews. Competition drives

:35:36.:35:40.

standards and any enforced closures for budgetary reasons may bd

:35:41.:35:47.

detrimental to standards for post 16-19 education in the future. I

:35:48.:35:54.

would agree that the slash `nd burn approach is not the best wax to go

:35:55.:36:00.

and competition certainly is help people young people when thdy are

:36:01.:36:02.

looking at choices. Not at the moment. Even the House of Commons

:36:03.:36:12.

library research suggests that 1.6 billion could be wiped off the total

:36:13.:36:19.

budget next year if the cuts pushed through. Over the last thred months

:36:20.:36:23.

I have also met with represdntatives the Association of colleges,

:36:24.:36:30.

representing six form and FD colleges and with members from both

:36:31.:36:35.

sides of this house, all of whom who are concerned with the currdnt state

:36:36.:36:44.

of FE in England and want to find out what we are doing in Scotland. I

:36:45.:36:48.

am not going to give way just now. I have told them the same thing.

:36:49.:36:53.

Colleges in Scotland are about access, pathways and employlent

:36:54.:37:00.

Would my honourable friend take an intervention? Finally the honourable

:37:01.:37:04.

gentleman wants to stand, btt it seems he wants to intervene from the

:37:05.:37:08.

floor before that point. Wotld the honourable lady not accept that

:37:09.:37:13.

firstly, this whole area of policy is devolved and what the Scottish

:37:14.:37:18.

Government decides is for it and secondly, her government has close

:37:19.:37:25.

colleges which we have not done Firstly, education is devolved. What

:37:26.:37:31.

I think that this house could possibly pay attention and look at

:37:32.:37:40.

the members of his own partx who have come to me and asked what

:37:41.:37:45.

Scotland is doing. They are looking for advice and looking for ` new way

:37:46.:37:51.

of doing things. I will givd way. I certainly agree with the honourable

:37:52.:37:55.

lady that the minister is not in a position to dish out lecturds, but

:37:56.:38:01.

she has to look with humility at the SNP record. Staffing cuts, fewer

:38:02.:38:05.

students and 10 million hours less of learning. That is a record she

:38:06.:38:12.

should be ashamed of. In Scotland, a well-publicised restructuring of the

:38:13.:38:23.

college sector has taken pl`ce. What has been cut is short leisure

:38:24.:38:31.

courses of under five hours which do not lead to progression. In fact in

:38:32.:38:36.

one area college numbers were made up from pupils at a local primary

:38:37.:38:43.

school who were subscribing to do a first aid course. This is not real

:38:44.:38:49.

college numbers and in fact, if we look at the numbers involved, if we

:38:50.:38:54.

take the number of hours spdnt on these short courses, 142 hotrs of

:38:55.:39:03.

these short courses accounts for one full-time place and the students are

:39:04.:39:09.

not real students. They do not exist. Short courses that ldad to

:39:10.:39:14.

progression have continued to be maintained and art delivered still

:39:15.:39:22.

at our colleges. I am grateful to the honourable lady. I welcome her

:39:23.:39:27.

interest in English education post-16. It is generous of her to

:39:28.:39:31.

interest herself in these affairs, but I wonder if she could rdsponded

:39:32.:39:36.

to the point made earlier on the number of people not in education,

:39:37.:39:42.

employment or training post,16 in this country which is at an all time

:39:43.:39:48.

low. I wonder if she would welcome that and share my disappointment

:39:49.:39:52.

that the honourable lady from Manchester Central did not touch on

:39:53.:39:58.

that point at all. The numbdr of young people not in education,

:39:59.:40:07.

employment or training in Scotland is even less still.

:40:08.:40:15.

In the past, we had courses that were oversubscribed, and yotng

:40:16.:40:23.

people subsequently flooding the jobs market, searching for positions

:40:24.:40:28.

which simply did not exist. We do not want to serve our young people

:40:29.:40:32.

badly by allowing them to w`it several years of study, onlx to be

:40:33.:40:37.

thrown on the scrapheap at the end of their course. Would my honourable

:40:38.:40:44.

friend agree with me that a lot of good work is done by collegds in

:40:45.:40:47.

Scotland in cases of mass redundancies? The Scottish

:40:48.:40:53.

Government's partnership on access and employability, Scottish colleges

:40:54.:41:00.

play an important role and `re mandated to do this work on

:41:01.:41:02.

employability and retraining. Absolutely. Colleges in Scotland

:41:03.:41:10.

don't just serve young people, they serve a wide sector of socidty. The

:41:11.:41:14.

Scottish Government is determined that young people need colldge with

:41:15.:41:22.

the skills that employers w`nt. Therefore, prioritising full-time

:41:23.:41:25.

courses with recognised qualification matching true market

:41:26.:41:33.

need is the right thing to do. In 2013-14, there were nearly 020, 00

:41:34.:41:40.

full-time equivalent collegd places in Scotland, exceeding everx target

:41:41.:41:47.

since 2011. Would my honour`ble friend agree with me that ftrther

:41:48.:41:52.

education provides a valuable second chance for adult returners,

:41:53.:41:55.

especially women, who did not achieve at school? Absolutely. Since

:41:56.:42:03.

2006, we have seen an incre`se in the number of full-time students

:42:04.:42:08.

under 25. Order. On a point of order, Mr Bowles. Madame Deputy

:42:09.:42:14.

Speaker, could you advise md on a debate that is called on a latter

:42:15.:42:18.

that is entirely devolved, while I do understand that honourable

:42:19.:42:21.

members from the Scottish N`tional Party are welcome to contribute to

:42:22.:42:25.

that debate, they do need to be talking about the matter of that

:42:26.:42:29.

debate, which is further edtcation among 16 to 19-year-olds in England.

:42:30.:42:35.

I thank the honourable gentleman for his point of order. I am listening

:42:36.:42:39.

very carefully to what the honourable lady is saying. So far,

:42:40.:42:45.

my interpretation of what she is saying is that she hopes th`t she

:42:46.:42:52.

can inform the House about latters in Scotland which might be helpful

:42:53.:42:58.

when considering similar matters in England. But I am certain that the

:42:59.:43:03.

honourable lady will bear in mind that this is specifically a motion

:43:04.:43:09.

about further education in Dngland, and she will appreciate that a lot

:43:10.:43:13.

of people whose constituents will be affected by the motion are waiting

:43:14.:43:23.

to speak. Of course I will. It is worth remembering that whild members

:43:24.:43:29.

from both sides have sought my advice, it might be worth t`king

:43:30.:43:38.

account of what I have to s`y. To ensure access and inclusion in

:43:39.:43:44.

colleges, the Scottish Government have provided an additional 6.6

:43:45.:43:50.

million for part-time basis, further education students can get bursaries

:43:51.:43:54.

of up to ?93 a week and the Scottish Government has maintained the

:43:55.:43:59.

educational maintenance allowance to allow young people to stay hn

:44:00.:44:07.

education. Colleges offer otr young people pathways. I visited Glasgow

:44:08.:44:11.

Clyde college to see the range and quality of courses on offer. The new

:44:12.:44:15.

purpose-built facility was bursting with students engaged in thdir

:44:16.:44:22.

studies. Local employers ard working with the college. I will not give

:44:23.:44:28.

way. I have been encouraged by Madame Deputy Speaker to move

:44:29.:44:41.

quickly, so I will. Maybe the member who is making interventions from the

:44:42.:44:43.

bench could learn something from the picture in Scotland. Local dmployers

:44:44.:44:50.

like BEA are working with the college with apprentices during day

:44:51.:44:56.

releases. There is a nurserx on site for students with caring

:44:57.:44:58.

responsibilities, and a number of women on full-time courses has

:44:59.:45:04.

increased. There is also a programme for students with additional support

:45:05.:45:07.

needs, which compares them for the world of work. Certain school pupils

:45:08.:45:17.

also benefit by appending local colleges for two or three afternoons

:45:18.:45:24.

a week -- attending local colleges, similar to the situation in England,

:45:25.:45:27.

allowing them to follow voc`tional courses that the school could not

:45:28.:45:32.

provide. Often, these are disaffected or challenging students

:45:33.:45:36.

for whom academic roots are not working. I keep hearing talk about

:45:37.:45:43.

these colleges dividing ways for students to do their A-levels. Some

:45:44.:45:47.

students will follow vocational routes to get vocational

:45:48.:45:54.

qualification, which must h`ve equal views on them as the academhc

:45:55.:46:01.

subjects. One of the challenges experienced by colleges is how they

:46:02.:46:05.

are perceived by society. It is important that we as legisl`tors

:46:06.:46:08.

recognise the vital role pl`yed by colleges in providing posithve

:46:09.:46:13.

destinations. A few years ago, I had a student whose parents werd keen

:46:14.:46:21.

that he should go to university but he was not emotionally or

:46:22.:46:26.

academically ready for this. When he saw what the college had on offer,

:46:27.:46:30.

he decided to sign up. He h`s flourished. He now has two job

:46:31.:46:34.

offers for when he finishes in June, but he also has the positivhty of

:46:35.:46:40.

entering the third year at university -- the possibility. I

:46:41.:46:45.

will finish by saying that colleges provide an excellent educathonal

:46:46.:46:48.

opportunity for our young pdople. The role they play in providing

:46:49.:46:51.

routes to employment must bd recognised and appropriatelx

:46:52.:46:57.

funded. It is no other incidents that Scotland has a higher rate of

:46:58.:47:02.

positive destinations and a higher rate of youth employment and the UK

:47:03.:47:10.

as a whole. Neil Carmichael. Thank you. It is a pleasure to spdak in

:47:11.:47:14.

this debate, because I have a long outstanding interest in the FE

:47:15.:47:18.

sector and as chair of the suggestions let committee, H'm

:47:19.:47:20.

particularly interested to lake sure we drive through apprenticeships and

:47:21.:47:26.

literal people have choice post 16 and make sure we tackled thd

:47:27.:47:29.

productivity challenge this country has as we move along this

:47:30.:47:32.

Parliament. I am pleased th`t the business, innovation and skhlls to

:47:33.:47:37.

let committee and the education committee have already had `

:47:38.:47:41.

successful conference on thd issue of productivity. We have iddntified

:47:42.:47:46.

the need for an effective FD sector. That is at the core of this

:47:47.:47:53.

discussion. We need to encotrage innovation and a scope withhn the FE

:47:54.:47:59.

sector that matches the dem`nds of employers and the professions. Being

:48:00.:48:05.

technical, profession and bding hired is a good way of describing

:48:06.:48:09.

the FE sector we need for tomorrow. With that kind of theme in lind I

:48:10.:48:15.

would say the following. In terms of apprenticeships, we need to make

:48:16.:48:19.

sure that has a traction and parity with academic activity and

:48:20.:48:27.

learning. It seems to me th`t the gold standard award approach is

:48:28.:48:30.

right and the government should pursue it by extending that to a

:48:31.:48:33.

national apprenticeship award so that we can see consistency across

:48:34.:48:38.

the field and recognise that quality is the hallmark of a good

:48:39.:48:42.

apprenticeship scheme. That is one of the things we need to encourage

:48:43.:48:49.

in the FE sector to engaging. My next point is about six forl

:48:50.:48:54.

colleges. We need to look at those carefully. As the Secretary of State

:48:55.:49:01.

was suggesting, through the regional schools Commissioner mechanhsm,

:49:02.:49:07.

there is engagement. But throughout them all, we need to think `bout the

:49:08.:49:15.

issue of sixth form colleges. I would like to suggest that we

:49:16.:49:17.

consider the idea of allowing them to become academies and go hnto the

:49:18.:49:22.

academy structure and becomd part of multi-academy trusts. I am pleased

:49:23.:49:30.

that he has mentioned sixth form colleges as chairman of the sixth

:49:31.:49:36.

form college group. They ard the most brilliant institutions in the

:49:37.:49:40.

country. Would he not like to get his influence to create mord sixth

:49:41.:49:45.

form colleges? I am keen to use my influence for a lot of things, and

:49:46.:49:49.

that is one of the directions I have travelled. One of the things we also

:49:50.:49:58.

need to do is make sure there is more employer engagement. That can

:49:59.:50:02.

and should come through govdrnments, and we have already seen ch`nges

:50:03.:50:08.

that are bringing that about. But the education sector also ndeds to

:50:09.:50:10.

engage more readily with thd world of work, not just businesses, but

:50:11.:50:15.

also the professional and c`re sectors and so on. It is crhtical

:50:16.:50:22.

that we have a way of knowing how many people with the types of skills

:50:23.:50:26.

needed are available. We nedd to know more about how the labour

:50:27.:50:32.

market works. The education system needs to know more about how the

:50:33.:50:35.

labour market is developing in terms of skills. That interface is

:50:36.:50:42.

crucial. I see it coming through in various changes in the FE sdctor. In

:50:43.:50:46.

my constituency, we have a good example of this through Stroud

:50:47.:50:51.

College merging with another college and creating an innovative college

:50:52.:50:59.

structure. And it has some characteristics which colleges need

:51:00.:51:04.

to think about when going through the area review. Characteristic

:51:05.:51:08.

number one is precise, strong and courageous leadership. It is

:51:09.:51:14.

critical that we can express a position about where our colleges

:51:15.:51:18.

done, and that is best done by a leadership with the capacitx and

:51:19.:51:29.

willingness to do that. At St Helens College, it has innovation `nd

:51:30.:51:33.

strong leadership. They do not get funding all the time now. Btt my

:51:34.:51:40.

college went down to Liverpool docks and Dave education to some 200

:51:41.:51:46.

Chinese speaking people. Thdy didn't speak English, at 7am. It w`s a huge

:51:47.:51:53.

success. There are no bounds to what that college does. We have the

:51:54.:51:57.

inside of a plane in that college, where they train people for the

:51:58.:52:03.

hospitality. It might be a valid point, but it is not a speech. Neil

:52:04.:52:11.

Carmichael. I nearly made an intervention myself! But I was

:52:12.:52:18.

listening to the thrust. Obviously, strong leadership is combindd with

:52:19.:52:27.

good management of resources. The second characteristic we nedd to

:52:28.:52:33.

bear in mind is the ability to embrace other types of FE and

:52:34.:52:40.

colleges within the wider framework of an overall body. Here, it is

:52:41.:52:45.

important to note the success of UTC a smack, where they have bedn in

:52:46.:52:55.

conjunction with an FE colldge. We have a training centre making use of

:52:56.:52:58.

a decommissioned nuclear power station. That is bringing together

:52:59.:53:05.

the kind of training we need, specifically for renewable dnergy

:53:06.:53:10.

and nuclear energy. So you have to be a bit more innovative in the way

:53:11.:53:14.

we shape and structure thesd things. One brief intervention. I agree with

:53:15.:53:26.

him that we need to plan edtcation for the economy's needs. Sixth form

:53:27.:53:30.

colleges have been under such financial pressure that a qtarter of

:53:31.:53:34.

them have had to cut stem courses. Isn't that tragic and a mistake

:53:35.:53:39.

Well, we need to increase otr stem courses. That is what is happening

:53:40.:53:44.

in mainstream education. We do need to see more young people taking

:53:45.:53:50.

science, technology, enginedring and mathematics. It is central to our

:53:51.:53:52.

long-term goal of increasing productivity. I would answer that

:53:53.:53:58.

with the next point I was going to make. It is the thesis you `bout

:53:59.:54:04.

maths. We have to ask, is it wise to last unions and pupils to stop

:54:05.:54:10.

taking maths post-16? That hs a critical question me we must put on

:54:11.:54:13.

the table. I do think there is an argument to be had about a post 16

:54:14.:54:17.

national baccalaureate cont`ining maths and English and either

:54:18.:54:22.

technical studying or furthdr academic study. I think that would

:54:23.:54:27.

help the FE sector generallx if that was put on the table as an option.

:54:28.:54:34.

As a country, we have a big problem with maths. We don't have enough

:54:35.:54:36.

people capable in maths. Subtitles will resume on 'Wddnesday

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