Mr Redwood’s contribution to Treasury Questions, 24 Jan

Mr John Redwood (Wokingham) (Con): When will we see more of the details of the credit easing scheme and what is the Minister’s forecast of the monthly draw-down for the rest of this year?

The Financial Secretary to the Treasury (Mr Mark Hoban): We are working with banks on the details behind the national loan guarantee scheme. We have set aside £20 billion to enable the rates that are charged to small businesses to fall by up to 1%. The utilisation of the scheme will very much be driven by the demand from businesses for debt finance.

Growth in government and financial services provides overall growth to UK

 

           Over the last quarter UK output fell by a small 0.2%. These preliminary figures are often revised upwards later. For the year as a whole the economy grew at just 0.8%.

           All this was well known and forecast. We have been talking here about the need for a stronger growth strategy for eighteen months, and clearly as the government recognises more needs to be done. What is far less well known is the fact that the government sector is still adding to the expansion, whilst industry and some private sector services are dragging the figures down.

            In the last quarter the  government sector was up 0.4%. Business and financial services were unchanged. Production and construction fell. For the year, government and other services were up 2.5%, business services and finance were up 2.1%, whilst production industries were down 2.6%.

           Perhaps all those who have been talking of the massive state cuts might like to explain how this results in a continued expansion of the state sector relative to manufacturing industry.

The end of regionalism

 

            There are popular cuts in spending. The government has done some work to reduce the degree of regional government in England, but it should do more. Many of us would be cheering in the aisles if the government said it could no longer afford any regional government, and rolled it all up. It could leave local matters to Councils, and English national matters can be decided at Westminster.

              Many of us have no regional loyalties. Indeed, we do not even know which region they want to cajole us into. Is my region Thames Valley? Or is it Rest of the South-east?  Is it the South East?  Is it Home Counties?  Is it part of ancient Wessex? Why does my region usually exclude London, where we have strong links and contacts, but may include Thanet and East Kent, which is a long way away?

                It is said the further away from London you go, the stronger the sense of regional identity. I do not myself find Exeter is keen to accept a lead from Bristol as part of the wider South-west, or Plymouth happy to genuflect to Exeter. Liverpool is not a natural subject of Manchester. The senses of City and local identity are usually much stronger than the EU’s regional identities they are seeking to impose.

                    On Monday  night I was invited on to Scottish BBC (there is no equivalent English BBC of course) to talk about English nationalism. I tried to explain that English nationalism is fuelled most of all by the EU. It is our sense of injustice and anger over the way the EU wishes to balkanise England, and wipe it off the face of their maps, that does more than anything else to propel English feelings. The interviewer was not of course interested, as he was seeking to define English nationalism as a response  to Scottish nationalism. He could not grasp that is not how most of us in England define it for ourselves, but as so often the BBC was uncomprehending and uncaring of the English viewpoint.

The Transport Secretary confesses HS2 will be more expensive this Parliament

 

               I reported here my question of the cost of HS2 this Parliament to Miss Greening.  She told me they would “only” be spending £200 million this Parliament on preparation work. By the standards of  recent government  spending, that was reassuring for three and a half years.

             Today I received a letter. It told me the total cost of HS2 “is expected to be £32.7 billion…..Of this the cost of the scheme this Parliament will be around £750 million”. She had apparently recalled the cost of land acquisition, not all the consultancy and planning costs.

John Redwood’s intervention during the opposition day debate on Youth Unemployment and Bank Bonuses, 23 Jan

Mr John Redwood (Wokingham) (Con): Will the hon. Lady explain why Labour Ministers accepted and approved such grotesque contracts for RBS, so that they now personify payment for failure?

Rachel Reeves (Leeds West) (Lab): We introduced a bank bonus tax to get some money back from the banks. The Government refused to go ahead with it and, instead, gave the banks a tax cut this year. That is not acceptable, and that is what the motion is about.

John Redwood’s contribution to the statement on Executive Pay, 23 Jan

Mr John Redwood (Wokingham) (Con): I welcome anything that recognises that it is the role of shareholders and competitive markets to decide pay in companies. With that in mind, let us consider what happens where the Government are the shareholder. Will the Secretary of State remind us what deal the Labour Government signed up to for RBS top executives, explain why it was so far in excess of the dreadful results that have been delivered in public ownership, and say what this Government can do to put that right?

The Secretary of State for Business, Innovation and Skills (Vince Cable): My right hon. Friend is right to stress the central role of shareholders and to remind us about the conditions according to which the head of RBS was appointed and the contract negotiated. Of course, the problem is not just with pay; we are now also having to consider the problem of knighthoods that were awarded for appalling behaviour in British banking.

Constitutional change I would like to see

 

           Restoring democracy to the UK requires the following steps:

1. Hold an early referendum on Scottish independence. I suspect the Scots will vote to stay in the Union. We can then get on with planning a stronger UK democracy.

2. You could then  create symetrical devolution. MPs elected to the Union Parliament could meet in their respective capitals two days a week to transact devolved business, and three days a week in London to transact Union business. London would be the capital of England as well as of the UK. Doubtless the Scots will wish to keep their double manning with different Scottish representatives for the Scottish Parliament. This should require rethinking the pay and rations of their MPs at Westminster,once they do not participate in decisions on England.

3. Renegotiate our relationship with the EU, and put the result to a vote of the UK people to answer the question if they wish to stay in the EU on the revised terms.

4.Complete the abolition of all English regional government

5. Abolish more quangos

6. Complete the reform of the Lords

7. Strengthen the Commons further

 

I will be writing in more detail about each of these in turn in future posts.

 

 

 

The politics of jealousy is not proving popular for the Lib Dems

 

            The Lib Dems seek to differentiate themselves from the Coalition’s policies. I have no problem with that. The two Coalition parties are different, and need to offer choice to the electors come another election.

              What suprises me is how they wish to be different. They think a benefits cap of £26,000 is too mean, when a large  majority of the electorate and a majority of their own voters think it is an important improvement in our welfare system.

              They think the UK should not stand up to the EU, but should go along with more or less any further transfer of power, tax imposition and other humiliation the EU should want to visit on us. Around 80% of the UK public disagree with them.

               They want a mansion tax , to tax people who live in the more expensive parts of the country, regardless of their incomes, mortgages and circumstances.

                Put this altogether and they end up with just 9% support in the latest polls. No amount of banker bashing rhetoric seems to work to make them more popular, but then they are in government and are paying RBS executives large sums whilst losing  they lose  taxpayer money. No amount of pro EU rhetoric seems to lift their poll ratings. Nor, I suspect, will voting for more benefits for people not in work as these matters are put before the Lords.

John Redwood’s contributions to the debate on the EU motion: Connecting European Facility, 19 Jan

Mr John Redwood (Wokingham) (Con): A number of people who have written to me condemning the High Speed 2 project have alleged that Britain has to build it under the EU network ruling. Will the Minister confirm that Britain remains free to make its own decision on whether to have High Speed 2?

The Financial Secretary to the Treasury (Mr Mark Hoban): My right hon. Friend is, as is often the case, spot on. There is no requirement under the proposal for us to build High Speed 2.

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1.1pm

Mr Redwood: Will the shadow Minister bring us up to date with Labour thinking on the IMF having more money to lend to save the euro? Does Labour think that it would be a good idea because it would promote growth, or a bad idea because it would damage the British budget?

Chris Leslie (Nottingham East) (Lab/Co-op): We are all waiting to see what proposals come forward. The Chancellor has said that he will come to Parliament and let us have a say on many of these things. Indeed, perhaps the Minister can help us out with the timing of those proposals—[Interruption.] If he would care to listen to my questions, perhaps he could also tell us when we will get the Bill to enact the European financial stabilisation mechanism permanent bail-out fund. We are all waiting for that. The eurozone countries are supposed to be rolling together the European financial stability facility and the EFSM into that permanent arrangement, but as I understand it we will have to legislate for that. Will he tell us when that will happen, because it is related to this question about potential IMF funding? We need clarity from the Government—and from the IMF as well.

John Redwood’s contribution to Business of the House, 19 Jan

Mr John Redwood (Wokingham) (Con): May we have an early debate on who speaks for England and who should make decisions for England in an increasingly devolved United Kingdom?

The Leader of the House of Commons (Sir George Young): I understand my right hon. Friend’s concern. We announced on Tuesday the establishment of the West Lothian commission, which will look at a range of options. For example, with issues that affect only England and Wales, one option would be that only English and Welsh MPs voted on such matters. In my view, that would be an appropriate rebalancing of the constitution to take account of the fact that in Scotland they have their own Parliament in which issues are resolved on which English MPs cannot vote. It seems somewhat perverse that Scottish MPs can vote on those very same issues when they apply only to England.