Conservative MPs urge Greece to leave the €uro but Treasury minister Mark Hoban declines to agree

By Tim Montgomerie
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In the late 1990s the Tories became the anti-€uro party but in the Commons yesterday a Tory Treasury minister would not echo Boris Johnson's comments and say that it was time for Greece to leave the single currency and pursue an export-led recovery. The frontbench's reluctance contrasted with the anger of Jack Straw and a host of Tory backbenchers, who all called for Greece to quit the currency zone.

It was the Eurosceptic Labour MP, Gisela Stewart, who yesterday forced an emergency statement from the Treasury. Ms Stewart wanted to know what were the Treasury’s contingency plans in the event of a Greek default.

George Osborne was attending a finance ministers meeting and it was left to Mark Hoban, the Financial Secretary, to answer on behalf of the Treasury. He declined to detail any contingency plans but did assure the House that the UK would not participate in any European bailout of Greece:

"We did not participate directly in the May 2010 package of support for Greece, and there has been no formal suggestion of UK bilateral loans or use of the EFSM, which is backed by the EU budget. The UK participated in the May 2010 package for Greece only through its membership of the IMF. So the burden of providing finance to Greece is shared between the IMF and euro area member states, and we fully expect this to continue. Our position on that is well understood across the euro area."

Jack Straw, the former Foreign Secretary, was unimpressed by Mr Hoban's reticence and, enjoying his own backbench freedom, urged the Government to declare that the €uro was dead in its current form (video here):

"Will the Minister not recognise that there is now a mood change in Europe? Der Spiegel, the German magazine has had a cover story [image on right declaring "Sudden and Unexpected"] contemplating the end of the euro as we now know it, and Mr Charles Grant, the well known europhile, has done the same in The Times today. Instead of sheltering behind complacent language and weasel words that we should not speculate, the Government should recognise that this eurozone cannot last. It is the responsibility of the British Government to be open with the British people now about the alternative prospects. Since the euro in its current form is going to collapse, is it not better that that happens quickly rather than it dying a slow death?"

Mr Hoban responded by noting that Mr Straw once wanted to take Britain into the €uro but refused to join him in stating that the current arrangement was over. "We have a strong interest, though, in the continued stability of the eurozone, as it is our major trading partner," said Mr Hoban, "Continued instability in the eurozone could be a factor in holding back the recovery of the British economy."

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Four Conservative MPs signal concerns about the Health Bill

By Jonathan Isaby

This afternoon sees two opposition day debates initiated by the Labour Party, on fuel prices and the NHS.

The Lib Dems' objections to the current NHS Bill are well documented, but four Tory MPs have popped their heads above the parapet to indicate they have concerns too.

An amendment to this afternoon's Labour motion on the NHS reorganisation has been submitted which would instruct the Government "to listen to the concerns of patient groups, professional bodies and independent experts and work with them to achieve a strengthened NHS".

This has been tabled by Tory MP and former GP Sarah Wollaston (pictured), and co-signed by Charles Walker, Douglas Carswell and Anne Main (along with six Lib Dems).

The amendment is unlikley to be called to be voted upon, but some of those individuals may seek to catch the Speaker's eye during the debate and expand upon their concerns...

Highlights from the Conservative contributions to the debate on votes for prisoners

By Jonathan Isaby

In advance of yesterday's debate on votes for prisoners, the man moving the motion, David Davis, made his case on ConHome here.

So below are some of the highlights from the contributions of other Conservatives during the debate.

NB A full breakdown of how all MPs voted is here.

South West Devon MP Gary Streeter said the motion invited people to address  the "fundamental issue" of "whether or not we can pass our own laws":

"There comes a time when it is necessary to take a stand. I argue that right now, on this issue, it is right for this House, today, to assert its authority. The judgment of the ECHR in the Hirst case flies in the face of the original wording and purpose of the European convention on human rights, in which it was clearly intended that each signatory should have latitude in making decisions on the electoral franchise in that country.

"We decided in this country centuries ago that convicted criminals should not have the right to vote, and I support that decision. After all, the punitive element of incarceration is the denial for the time being of certain rights and privileges that our citizens enjoy. We decided long ago that in addition to surrendering their liberty, convicted criminals while in prison would also give up their right to vote. That was the case in 1953 when the treaty on human rights was signed, and it remains the case."

Attorney General Dominic Grieve set out the Government's position early in the debate:

"Ministers will abstain. The Government believe that the proper course of action will be to reflect on what has been said and think about what proposals to bring back to the House in the light of the debate. The Government are here to listen to the views of the House, which are central and critical to this debate, as was acknowledged in the Hirst case."

Continue reading "Highlights from the Conservative contributions to the debate on votes for prisoners" »

Tory PPSs will get a free vote on votes for prisoners

By Jonathan Isaby

Earlier in the week I reported that Tory backbenchers would get a free vote next Thursday on the David Davis/Jack Straw motion defying the ECHR ruling on votes for prisoners. However, confusion reigned as to whether this would apply to the 40 parliamentary private secretaries, who are usually deemed to be part of the "payroll vote" which is expected to vote with the Government on all policy matters.

However, I have had it confirmed this afternoon that PPSs have today been told that they will be free to vote as they wish next week, making a bumper majority in favour of the motion all the more more likely. Ministers will not be able to vote for the motion but have permission to abstain, I am reliably informed.

Meanwhile, another potential spanner has been thrown into the works by St Albans MP Anne Main, who has been increasingly rebellious of late, not least over the European Union Bill. She has tabled the following amendment to original motion, reports Paul Waugh at PoliticsHome:

At end add 'and instructs the Government not to pay any compensation to prisoners and former prisoners in consequence of the maintenance of the current situation.'

We are unlikely to know until hursday whether it will get called for debate or voted upon.

Hague attacks Israel's "unwise" blockade of Gaza

In a statement to the Commons, William Hague says it is vital for there to be "unfettered" access to Gaza. Hamas, he says, continues to pursue an ideology of violence. Hamas must cease their attacks immediately and back The Quartet principles. The only long-term hope is a Palestinian state living in peace alongside a secure Israel.

Shadow Foreign Secretary David Miliband calls Israel's attack on the flotilla "self-defeating". The blockade does nothing to weaken the grip of Hamas - in fact Hamas benefits from taxes on smuggling.

Responding to Miliband, Hague says support for the people of Gaza is "bipartisan" in the Commons. He agrees that Israel's policy on the blockade "tightens" Hamas' grip on Gaza.

William Hague responds to a request from Ming Campbell that Hamas be brought into the circle of talks. Addressing "his honourable friend" the Foreign Secretary says Hamas must first recognise Israel, honour past agreements and abandon violence.

Labour MP Louise Ellman becomes first MP to speak in sympathy with Israel. She invites William Hague to understand how Israel can be assured that its security won't be compromised if the blockade is lifted. Two questions later Sammy Wilson (DUP) invites the Foreign Secretary to say how Israel's security can be guaranteed - and arms shipments avoided - if the blockade is lifted. Hague replies that the international community must provide Israel with such assurance without saying 'how'.

Sir Nicholas Soames calls the blockade "cruel" and invites William Hague to agree that it is illegal. William Hague says that he think the blockade is unwise and the challenge is to persuade Israel that it is not in its interest. Anne Main attacks what she describes as Israel's use of "selective footage" of the flotilla incident in the media. Another Tory MP Julian Brazier describes the blockade as "brutal". He says that smuggling tunnels into Gaza can now accommodate 4x4 vehicles.

Robert Halfon invites the Foreign Secretary to acknowledge that Israel is allowing millions of tonnes of humanitarian aid into Gaza and there is a risk that Iranian-supplied weapons could reach Hamas if the blockade is lifted. The Foreign Secretary says the comments bring balance to the discussion so far.

Ann Clywd calls on William Hague to adopt a hobnailed boot policy towards Israel. End the pussy footing she said and end the illegal settlements. William Hague replies that he still has faith in Israeli democracy and that the nation can be persuaded to change course.

Tim Montgomerie

Andrew Selous: Local housing allowance needs reform

Work and Pensions questions came around again yesterday.

Shadow Work and Pensions Minister Andrew Selous called for reform of the local housing allowance:

"It is now clear from reports across the country that not only tenants but charities helping the homeless are being very poorly served by the local housing allowance, so will the Minister agree to urgent reform of that allowance, which, frankly, is failing the very people whom it was designed to help?

Kitty Ussher: We always said that we would review the local housing allowance after two years, but the evidence so far does not bear out the hon. Gentleman’s points. In the pathfinder evaluations, it was shown that 96 per cent. of customers had a bank, building society or Post Office account, and a quarter of those had been opened in order for those customers to pay their rent. We are talking about an important policy, giving more choice to tenants. It is an important part of our plans for financial inclusion. We will, of course, listen to all interested parties, but we do not currently have the evidence that the hon. Gentleman needs to make his point."

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Tory MPs lobby Harriet Harman and Speaker for debate on 'quantitative easing'

Update: Daniel Hannan is also outraged at the democratic deficit.

Alan Duncan, Shadow Leader of the House at Business Questions, and Anne Main, Julie Kirkbride and Christopher Chope later, all pressed yesterday for full parliamentary scrutiny of the Bank of England's momentous decision to start printing £75bn of extra banknotes:

Alan Duncan: "Why are we not being given a statement, even today, on the economy? Can we not have a statement from the Government and a full debate on quantitative easing, so that Members can question the Government on how they intend to steer a course through inflation and deflation? The decisions being taken today are of the utmost gravity and will have profound effects on the economy for many years to come. They are desperate measures designed to address economic failure and collapse. When can we be told in clear terms exactly what the Government are doing and why?"

Harriet Harman: "The hon. Gentleman asked for more opportunity to discuss the economy. There will be a written ministerial statement later today about the decision by the Bank of England’s Monetary Policy Committee to ensure that the inflation target is met and that the economy does not fall below that target by putting extra money into the economy, which is described as quantitative easing. There will be an opportunity to debate the economic situation in Government time next Monday, as well as an Opposition debate on Tuesday on unemployment and a debate on business rates on the following Wednesday. On Monday week there will be a debate on industry and exports and on Tuesday week there will be a debate on the Welfare Reform Bill. There will be a great deal of further discussion on the economy in the next week or two."

***

Anne Main (St. Albans) (Con): On a point of order, Mr. Speaker. We have just had an update from the Leader of the House that we have now gone to £75 billion quantitative easing, which is uncharted territory. I ask the Leader of House to consider arranging an emergency statement on the matter so that the House might debate it. Frankly, I am surprised that we are not at least being offered a topical debate on the matter, given that it was widely trailed on all the radio programmes this morning and is now a reality.

Mr. Speaker: I am not responsible for as and when Ministers come to give statements to the House, except when hon. Members ask for an urgent question. I can then call the Minister—

Miss Julie Kirkbride (Bromsgrove) (Con): Further to that point of order, Mr. Speaker.

Mr. Speaker: If I can finish. I can then call a Minister to the House. I have no doubt that the deep concern that the hon. Member for St. Albans (Anne Main) has mentioned will be noted.

Miss Kirkbride: Further to that point of order, Mr. Speaker. The announcement was only made at 12 o’clock, although it had been widely anticipated. Clearly, it is possibly the most significant economic move that any of us will see carried out by the Government and the Bank of England in our lifetime. Can you tell us whether Treasury Ministers have said that they are prepared to come to the House either today, or at the very latest tomorrow, to explain this enormously significant economic move?

Mr. Speaker: These things are up to Treasury Ministers. The matter has been put on the record by both hon. Ladies.

Mr. Christopher Chope (Christchurch) (Con): Further to that point of order, Mr. Speaker. We sympathise with the position in which you are placed by the arrogance of the Government, but can you give us an indication of whether you would be prepared to consider an urgent question for tomorrow? The House happens to be sitting this Friday and there will be a lot of public interest in the major announcement that was made by the Government today.

Mr. Speaker: I am not suggesting that I will grant an urgent question, because it would be wrong of me to do so at this stage. Matters have been put on the record and the deep concern of hon. Members has been conveyed, and it will percolate through to Treasury Ministers. An application for an urgent question can be made in the usual way—[Interruption.] The Clerk reminds me it has to be done for 11 am. I used to work to a stopwatch when I was at Rolls-Royce.

Bob Neill attacks centralised housebuilding targets

It was questions to Communities and Local Government ministers yesterday.

Shadow London Minister Bob Neill asked a good question about centralised housebuilding targets:

"It is five years this month since the Government’s own Barker review identified the problems that arise from reliance on the section 106 system and its attendant complexities as a means of driving development. Since then, the Government have added to those complications with measures such as the community infrastructure levy. Against that background and the decline in receipts, to which reference has been made, is it not better to move away from that complicated regime and a system of top-down development targets to one of incentivising local communities and local authorities to accept development by allowing them to keep some of the proceeds that arise to their own tax base from encouraging development?

Margaret Beckett: I think that the hon. Gentleman left out an important development: in the meantime the Government have made available some £8 billion of resources for investment in housing. That is twice as much as the amount that was available in the previous period, which was itself substantial. I think that he was probably referring to the proposals, in so far as one can call them that, in the Conservative party’s latest publication of its policies —[Interruption.] I accept that it is a very short read. It is perhaps not entirely well-founded in the statistics that it cites, but I am sure that we will be examining it in future in the House."

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No guarantee of rail construction jobs for British workers

St Albans MP Anne Main has revealed that the Government's plans to build new rail links are not guaranteed to translate into lots of jobs for British workers. Indeed Transport Minister Paul Clark has stopped short of saying that UK companies will enjoy any sort of advantage when bidding for contracts:

"To ask the Secretary of State for Transport (1) what plans he has to increase capital expenditure on rail links as part of the Government's plans to create up to 100,000 new jobs through public works; [248743]

(2) what estimate he has made of the number of jobs that will be created by increased funding for new rail links in (a) 2009, (b) 2010 and (c) 2011 under the Government's plans to create up to 100,000 new jobs through public works; and what proportion of those jobs he estimates will go to British workers. [248747]

Paul Clark: The July 2007 Rail White Paper set out the Government's commitment of £10 billion towards increasing capacity on the rail network over the next five years, including improvements to the infrastructure.

In the pre-Budget report in November, the Government announced that they are bringing forward £3 billion of capital spending from 2010-11 to 2008-09 and 2009-10. The package included £300 million to accelerate the delivery of up to 200 new carriages to expand capacity on the rail network and an extra £54 million to help enhance the North London rail line to increase the long-term freight capacity of this vital cross-London rail route.

It is not yet possible to say how many jobs will be created in developing rail links in the next three years but British suppliers will be well placed to compete for this work."

There may be other good reasons for expediting capital expenditure, but people will find it remarkable that a Labour Government is so unwilling to offer a firm assurance that British workers will benefit.

Tory MPs join Speaker's Conference on minority representation in Commons

A few days ago we reported that the special Speaker's Conference would, under the chairmanship of Speaker Michael Martin:

"Consider, and make recommendations for rectifying, the disparity between the representation of women, ethnic minorities and disabled people in the House of Commons and their representation in the UK population at large". 

We now have details of its membership:

Anne Begg (Vice-Chairman, Labour), Diane Abbott (Labour), John Bercow (Conservative), David Blunkett (Labour), Angela Browning (Conservative), Ronnie Campbell (Labour), Ann Cryer (Labour), Parmjit Dhanda (Labour), Andrew George (Liberal Democrat), Julie Kirkbride (Conservative), William McCrea (DUP), David Maclean (Conservative), Fiona Mactaggart (Labour), Anne Main (Conservative), Jo Swinson (Liberal Democrat) and Betty Williams (Labour).