Sammy Wilson
MP for East Antrim · Democratic Unionist Party · United Kingdom
“I draw attention to my entry in the Register of Members’ Financial Interests. The Foreign Secretary has said that his concern is for the behaviour of some settlers on the west bank, and I think we all share that, but does he accept that the fear of losing votes to the Green party and the independent Members on the Bench behind me is also…”
“It is a sad state of affairs when ordinary people feel compelled to take direct action against illegal immigration into our country as a result of successive Governments failing to stop the invasion of our country by illegal immigrants, aided by criminal gangs.”
“The Chancellor has rightly identified trade frictions as a major impediment to economic growth. As a result of the Windsor framework, the internal market in the UK has been severely disrupted by EU-imposed restrictions on trade, which mean customs unions, mountains of paperwork and physical barriers. What steps does the right hon.”
“We would not need these regulations were it not for EU regulations having to apply to a certain part of the United Kingdom because it is regarded as part of the EU, regardless of the democratic vote of the British people to leave the EU. This is not about protecting biodiversity.”
“Because they are now subject to all these additional regulations. If they do not abide by those regulations—we have already seen this—those goods can be seized, destroyed, re-exported or detained by DAERA in Northern Ireland. That is not something which is just a maybe; it happens currently.”
“It is a pleasure to serve under your chairmanship, Sir Alec. The Minister outlined why these regulations were necessary and gave what, to most on the Committee, would be an acceptable argument: they are to protect biodiversity in Northern Ireland and to ensure that diseased plants are not accessing the Northern Ireland market.”
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“after the next election will hit hard-working families hardest? Should the Government not be ashamed of themselves?” The answer was “absolutely”, and that the Conservatives would keep reminding the then Government of that “every…day between now and the…election.” —[ Official Report , 26 November 2008; Vol. 483, c. 741.] The Conservatives did that, but as soon as the election was over and VAT went up to 20%, it all went quiet on the Government Benches, and we did not hear much from them about VAT hitting the poorest families hardest. During this debate, Government Members have said, “Ah, yes, but we reduced fuel duty.” On the one hand, fuel duty was reduced; on the other, VAT was put up. The Chancellor gave, and the Chancellor took away. That is the truth for hard-working families.”
“Indeed, in “A Fair Fuel Stabiliser” they indicated that any reform should help families when the cost of living is rising and reduce the inflationary impact on the economy—but what has the record been since they came into power? In Northern Ireland, fuel bills for families have increased by an average of £254 a year for those using diesel and £284 a year for those using petrol. The Government promised in opposition to do something for families when the cost of living was rising, but their actions have been different. They made clear in opposition what they thought about an increase in VAT. Indeed, in an intervention in this House in 2008, a Conservative Member asked the then shadow Chancellor: “Does my hon. Friend not agree that Labour’s plans to increase VAT to… perhaps even 19.5 per cent….”
“I welcome the opportunity to speak in the debate, because the price of fuel is an important concern for many of our constituents. I will start with two observations. First, I am glad that there has been little evidence today in the House of the green zealotry that drove the increase in fuel prices—a point we must not forget, because it was argued that that was a way of weaning the population off fossil fuels. Secondly, although Members have talked about the role of petrol and oil companies, let us not forget that 60% of the cost of fuel is accounted for by Government action. Therefore, this is the appropriate place to debate what can be done about it. The Government’s record on this differs from what they said in opposition. They had many fine ideas in opposition.”
“The second reason that has been given has involved asking, “What about deficit reduction?”, but there does not seem to have been any difficulty with deficit reduction when it has come to bailing out the euro, with £12.5 billion having already been pumped into it and the Government talking about more money going to the International Monetary Fund. Indeed, as Government Members have said, the measure could almost be self-financing anyway: if, for example, it led to a rise in demand, there would be more duty; if it cut costs, more corporation tax would be paid.”
“That just illustrates the inflationary impact of the situation, not just on individual families but throughout the economy, and the Government ought to bear it in mind as they ask themselves, “What shall we do to regenerate the economy?” Various reasons why it is difficult to do something have been given. The first, which we have heard from Government Members, is that if we try to reduce VAT Europe will intervene. That is another reason for renegotiating our position on Europe—but leaving that aside, I note that 75% of the tax is not VAT but fuel duty, so even if there is a problem with Europe, the Government have another way of dealing with the problem.”
“I believe in Damascus road experiences, and if they help the consumer that is a good thing, so I look forward to that. I hope that the Government will have a Damascus road experience on this issue. Consumers would be pleased if they did. In opposition, the Conservatives made promises. Now that they are in government they hold in their hands the levers to help consumers, and from this debate will come the expectation that promises made in the past will be delivered by those who hold the levers and have the ability to use them in the present.”
“Given that the fine system is clearly not working, does the hon. Gentleman agree that one way we could deal with the issue would be to ensure that when someone purchases a car, whether from an auction, a dealer or wherever, they need to have proof of insurance before they can leave the premises? In that way we would have someone checking before the car ever got on to the road.”
“The hon. Gentleman is right: there is that culture, which is encouraged by people’s experiences, their friends’ experiences and sometimes the advice they are given by their legal advisers, solicitors and so on. However, does not the fact that insurance companies almost appear to roll over if a personal injury claim is set below a certain level encourage people to make such a claim? The hon. Gentleman is right to point out that fraud is sometimes hard to prove, but one thing insurance companies perhaps ought to be doing is to fight more of these cases, so that if people want to get this money, they have to put up some evidence in court. That might deter some of these applications.”
“The hon. Lady has done some impressive research into the fall in accidents. It is clear from the statistics on road accidents and deaths that there has been a dramatic improvement even since four or five years ago. For that reason, we should agree that this issue is not about the number of accidents, the demography or the level of claims, but about the lack of competition in the market. It therefore needs to be addressed by the Department for Business, Innovation and Skills and the Office of Fair Trading. They must find out whether collusion between the insurance companies has increased the price of insurance in Northern Ireland.”
“I can fully understand the hon. Gentleman’s point about the cost of insurance premiums for young people, but does he not feel that imposing restrictions on freedom such as curfews on top of high insurance premiums would be unfair, even if it were enforceable? For many young people, getting their driving licence is their ticket to freedom. To tell them that they cannot go out at night or have their friends in the car is not fair, especially when most young people drive responsibly and do not race around the roads causing accidents.”
“Given the increase in debt caused by the lower growth rates and the impact that that is likely to have on the Government’s deficit reduction plan, what impact does the Minister believe that will have on the United Kingdom’s credit rating? Does he believe that steps need to be taken to inject growth into the economy?”
“I know that the Labour party has an obsession with carbon emissions, and indeed the Climate Change Act 2008 was evidence of that, but the motion is about job creation. Carbon reduction has led to an increase in consumer and business electricity prices, and to energy-intensive industries relocating outside the United Kingdom, with the British Air Transport Association saying only last week, “If we continue down this road it will affect the aviation industry’s competitiveness,” so will the hon. Lady explain how that fits with job creation?”
“The hon. Gentleman makes the important point that whatever management inadequacies there may have been in Capita, it was regulated by the FSA. It oversaw what was supposed to be a prudently managed fund. Money was being put into totally illiquid assets and very dodgy assets, yet that was never identified. Was there not a regulatory failure in that regard?”
“I accept the hon. Gentleman’s defence of the independent financial advisers. None the less, the only interface that many investors have is with an independent financial adviser. Is there not an obligation upon them at least to check out the funds on which they advise? Is there not some responsibility there?”
“I note what the right hon. Lady has said about her support for the Climate Change Act 2008, but will she spell out for us what the cost of the renewables obligation has been for electricity consumers in the United Kingdom this year?”
“Thirdly, fuel poverty in Northern Ireland is well in excess of the average in the rest of the United Kingdom, affecting 43.7% of households in comparison with the UK average of 21%.”
“When a Secretary of State dismisses the problem by saying, “Well, phone around and find out what the alternative costs are”, when energy companies are given a slap on the wrist but there is no real outcome, and when we are told, “Just grin and bear it, because some of this has to be done to save the world”, it is understandable that people should detect a degree of complacency. This is a particular issue for us in Northern Ireland. First, the profits of Northern Ireland Electricity have risen by 68% over the past year, which is commensurate with the increases in the profits of the big energy companies in Great Britain. Secondly, energy prices in Northern Ireland are about 14% higher than the average in Great Britain.”
“I am pleased to take part in what I believe is a timely debate. There is general concern about the size of the energy bills that are hitting people right across the country. This is happening in the context of rising profits for the energy companies, while—despite what the global warmists are saying—we are increasingly having cold winters, which mean an increase in people’s energy bills. As I have said, the debate is timely because there is a general feeling that the Government may not be giving these matters the priority that they deserve.”
“According to the Department’s own estimates, domestic consumers will face a 33% increase in the cost of electricity and non-domestic consumers such as industry will face an increase of 43%. I support the motion, but it makes a rather glib reference to climate change. Many people will feel that they can agree with such sentiments, but behind them is the reality of what will happen to fuel bills: people will pay more for their energy. Denmark, not our country, has the highest costs per unit and the highest fuel bills, and Denmark produces 20% of its electricity from wind power. That is the highest proportion in Europe. The lowest costs are in France, which produces 75% of its energy from nuclear power.”
“A third—I suspect that many people will secretly agree with this, but will not be prepared to say so openly—is the impact of the Government’s climate change policies. When we say that because we want a low-carbon economy we will charge those who use carbon-based fuels in ways that cause carbon dioxide to be released into the atmosphere, and when we say that we will introduce policies to stop that happening, we cannot run away from the fact that such action will have implications for people’s fuel bills throughout the United Kingdom. The facts are clear. This year, simply to deal with the renewables obligations, being forced to purchase electricity from renewable sources has added £1.8 billion to the cost of producing electricity, and by 2020 the cost will be £6 billion a year.”
“I will not repeat all the many causes of the problem that have already been mentioned today, but I think it worth drawing attention to the way in which large energy companies have used the prices of raw materials to raise the prices that they charge consumers, and the fact that—as a number of Members have observed—there is not the same flexibility when prices fall. That is one of the reasons for the level of profits that companies are experiencing. As many Members have pointed out, in the short term some of those profits could be used to deal with the problems. A second cause is lack of investment. Because of that lack of investment and because of the demand that exists, prices are bound to be fairly buoyant anyway, and there is a captive market.”
“Yes, and I shall say more about that later. Part of the problem is a direct result of Government policies that have an impact on households and businesses throughout the United Kingdom. About 50% of those who are in fuel poverty in Northern Ireland are over 60, but just as worrying is the fact that 27% of those who will find it difficult to pay their fuel bills—who will be, as we loosely term it, in fuel poverty—are in work. They are going out every day to do their business, and their wages are so low that they still find it difficult to pay. That is another reason for my belief that the debate is timely and will resonate throughout the United Kingdom.”
“I do not know what the impact on global temperatures might be if we were to decarbonise our economy and reduce our CO 2 emissions, which account for 2% of the world’s CO 2 emissions, by 10% or 20% by 2020, but there will be a price to be paid by each of our constituents, and we ought to make that clear.”
“When he was in opposition he opposed nuclear energy, but now that he is in government he supports it, although he adds about 100 caveats to that support—the conversion process may take a little longer than we expected. Reference has been made to the possibility of huge shale gas finds in Lancashire. The relative costs of electricity generation are as follows: 2.2p per kW for gas-fired electricity as against 7.2p per kW for offshore wind farms. Offshore wind is therefore three and a half times more expensive. We say that we want 30% of our electricity to be generated by offshore wind by 2030, but that has implications for consumers across the United Kingdom. Regardless of our views on climate change, there ought to be some honesty in this debate.”
“I absolutely agree. I have consistently supported that, and back home have received some criticism for doing so, as people ask, “Are you therefore saying we should have a nuclear power station in Northern Ireland?” If it produces cheap electricity and deals with some of the problems people in my constituency face, of course I am happy to support that—although whether there are sufficient economies of scale in the Northern Ireland market to support a nuclear power station is another matter. I agree with the hon. Gentleman about the short-sightedness of previous Governments, and I welcome the Secretary of State’s U-turn. Although he tried to cover that up today, he has clearly performed a U-turn on this issue.”
“In the long term we have to look at our investment priorities and whether we are following the correct policy. If, in the long term, we wish to invest in that way, we need to consider how we are going to deal with the consequences.”
“The warm homes scheme in Northern Ireland has not just been a way of dealing with the social problem of fuel poverty; it is labour-intensive and so has been a useful scheme in creating local employment—it has a high local multiplier effect—at a time when we are looking for opportunities. In the longer term, we have to be realistic about green policies. I welcome the Chancellor’s remarks that we should not be pursuing policies on decarbonising the economy if they place our economy at a disadvantage compared with others across the world. While the European Union is preaching about reducing carbon emissions, the German Government have a much more realistic view. They are actually investing in 20 coal-fired power stations and in nuclear, because they want to find ways of producing cheap energy.”
“Of course it is going to cost money but this issue needs to be addressed. In the medium term, we must examine how we help people to reduce their energy bills. That could be through what we in Northern Ireland call the warm homes scheme, but what the rest of the United Kingdom calls the Warm Front scheme. The warm homes scheme was introduced by my right hon. Friend and it has gone from strength to strength. It has taken a lot of households out of fuel poverty, although I take the point made by the hon. Member for Glasgow North West (John Robertson), which is that it does not matter how much is spent on some homes as there will not be a significant reduction in the energy people use so fuel poverty will remain.”
“The question is whether those profits are excessive and whether, at this particular time, some of those profits should be going back to consumers. That could be in the form of price reductions, greater transparency about what is available or any of the suggestions that have been made, but the issue must be dealt with. The second issue to address is that of winter fuel payments, which was raised by my right hon. Friend the Member for Belfast North (Mr Dodds). Those payments have been reduced and it is not good enough for the Government to say, “We’re following the same policy as the party that used to be the party of government.” As I pointed out, part of this problem has been caused by Government policy and so it is essential that we find some way to help the most vulnerable.”
“Now that I have had my say on this particular part of the motion, I want to discuss some of the ways we can deal with the situation. We need to consider three periods. There are things we can do in the short term. Hon. Members have asked why pressure is not being put on the big energy companies to ensure that some of the windfall profits—I do not care what we call them, but we are talking about the increased profits—are redistributed in the form of lower prices. I understand that these companies have to make profits. If we want investment in the infrastructure for the future, there is no point saying that we want to strip profits from the companies that are going to have to make that investment.”
“I hope that the hon. Gentleman noticed that the Secretary of State talked about the capital cost that carbon capture and storage would add to a power station that had to use it. He talked about a figure of £1 billion plus the running costs afterwards, which would add significantly to the costs of producing energy from gas.”
“The right hon. Gentleman is making a powerful point given the current economic circumstances, but we do not know what the employment circumstances will be in 2016 or 2020. Does he agree that the more essential point is that because people see investing in their pensions as a long-term decision, it is the short-term way in which these changes are being introduced that is creating all the unfairness? People had certain expectations and had made contributions, but the benefit from those contributions is now being denied them.”
“The hon. Gentleman has rightly said that the Government have listened to the case that has been made, that they have made additional money available and that they will give people some notice of the changes in the pension age. Does he accept, however, that for many people who are carers, for example, or who are in part-time work or in and out of work for other reasons, the time horizon that is now being made available to them will not give them much chance to plan for their retirement?”
“May I welcome the Secretary of State’s statement and express my disappointment that the anger that has been expressed by the family is being used to indicate that the peace process in Northern Ireland is so fragile that it will somehow fall apart as a result of the disappointment of one family? The Secretary of State has given us details about the inquiry, but will he also tell us the cost of the inquiry so far and give us an assurance that this marks a permanent end to the expensive public inquiry process of dealing with the past, which has done nothing to heal wounds but has filled the wallets of lawyers?”
“I believe that the Chancellor has more leeway than he claims, and I hope that we shall see some movement as a result of today’s debate.”
“Instead, we could direct extra spending towards the activities that create the biggest multiplier effect—for instance, spending on housing and reductions in VAT, whether for extensions to houses or for the tourist industry. There are measures that do not cost a penny, such as reducing regulation. I welcome the Chancellor’s announcement that he will not stick to the carbon reduction targets. As one who voted against the Climate Change Act 2008, I am pleased to observe that some reality is now entering that debate. Why should we impose a 40% increase in energy costs on our industry when that is not being done elsewhere, with the aim of reducing carbon emissions into the atmosphere and thereby somehow or other affecting the climate? There are many suggestions to be considered.”
“I am not so sure, when I look at what is happening to bank lending in Northern Ireland, that quantitative easing is having an impact. The British Bankers Association has published its quarterly figures. From the last quarter of last year to the second quarter of this year, bank lending to small businesses fell by 30% in Northern Ireland. With the Chancellor telling us that there is sufficient liquidity in the banking system, one has to ask whether simply making money available is going to be the answer. Some fiscal measures have been suggested here today. It has been suggested that we need not increase spending and reduce taxes to create extra demand.”
“Where is the tipping point when the markets begin to say, “Do we really have a credible plan?” Equally, if we go down the path of increasing spending and reducing taxation, at what stage will the markets say, “You are deviating from the plan”? One thing that I suppose has come out of the debate so far—at least from the IMF, the OECD and even some of the credit agencies—is an acceptance that there can be some flexibility. Even the Chancellor is beginning to accept that demand in the economy needs to be stimulated. I suppose his attitude and approach to quantitative easing is an indication that he sees demand stimulated by monetary policy but equally that good fiscal policies and ideas may also be considered as a means of trying to stimulate growth.”
“I accept what the Chancellor has said today—there is considerable risk in changing position—but any economic strategy is bound to carry risk with it, as it involves trying to project and look into the future on the basis of many different variables, such as how markets will react and what will be the impact of a decision. We do not have perfect knowledge about those things, so sticking rigidly to the current plan carries a risk. We do not know how the markets are going to react to the increased borrowing that will be required as tax revenues fall and spending on unemployment and other benefits rises. Currently, the markets seem prepared to accept that there might well be an increase in the deficit because of what is happening, but that the Government are still on plan to reduce the deficit.”
“Secondly, I have looked at the statistics on Northern Ireland and found that we have seen no growth in the economy over the past 24 months. We have had an increase in unemployment and, of course, given our heavy dependence on the public sector, the public spending cuts of £4 billion over the next four years—40% of the capital budget—are bound to have a deflating impact on the economy. In listening to today’s debate, to the Chancellor’s reaction and to some of the Opposition’s proposals, we have to consider whether the rigid battle lines that have been drawn are of benefit to the economy in the long term.”
“I will not tax your brain, Mr Deputy Speaker, by getting you to guess about job creation or anything like that; I would like to make just a couple of points. First, I sometimes approach a debate such as this with a degree of unease. There is always a tendency either to pretend that there is no problem because the existing policy has to be defended or else to magnify the existing problems and in doing so to have an impact on confidence. One thing I have found from speaking to business people in Northern Ireland is that although we are going through difficult circumstances, which everyone recognises, there is no point in further impacting on consumer and investment confidence by, through political point scoring, making the situation appear worse. We need to try to avoid that in a debate such as this.”
“What arrangements does the Minister intend to put in place to ensure that places such as Northern Ireland benefit from the opportunities presented by the big society bank?”
“One proposal subject to consultation, which has now finished, for reducing costs in Northern Ireland is the devolution of corporation tax so that the rate can be reduced for that part of the United Kingdom. Will the Minister assure us that the devolution of corporation tax will not be set at a price that makes it impossible for the impact on the economy to be positive?”
“My party has no hesitation in backing the motion. The debate has now moved on. There will be inquiries. There will be an investigation of the wrongdoing, and there will be an investigation of the police and their activities. However, one thing must be dealt with if we are not to see a repeat of these events and a further undermining of our democracy. I refer to the whole issue of the concentration of press power in the hands of one organisation. It does not matter whether it is concentrated in the hands of News International, Rupert Murdoch or anyone else, but as long as that concentration is there, there will always be a tendency for those of us who are involved in the political field to want to be on the right side of the people who hold the power.”
“I have no doubt that News International believed it could get away with what it did get away with, because, being in such a powerful position, it felt that politicians might pull their punches and that the police might not fully investigate matters. As it felt that it could get away with some of those activities, it did them; then it pushed the limits and went further and further. If we do not deal with the concentration of power, I believe that this might happen again, regardless of what comes out of the inquiry, who goes to jail, and what sanctions are put in place.”
“Was it because the Home Office said he could not do anything? Was it because the police said there was no evidence? Or was it because he knew there was a certain limit beyond which he could not go? After all, he was the Prime Minister, so he could have made the decision. I do not wish to be partisan; I just think that we must look at what has happened under both the current Prime Minister and previous Prime Ministers. How did they behave? How did parties behave when in government and seeking the support of News International? As long as we have that concentration of power, there will always be the danger that our democracy might be undermined by those to whom we have to pander because we need the headline. That is bad for the business concerned as well, because of what it then believes.”
“We must address everything that leads to that concentration of power. If that is not dealt with, there will always be a tendency to rush after and try to please those who have such influence. We have only to consider the accusations that have flown back and forth across this House today. Why did the current Prime Minister, when he was at a low ebb in opposition, and under pressure from the Government of the day, hire a dodgy character even though he had been warned? Was that because of the influence that that might give and the doors that that person would open? Was it because of some of the other benefits that would come from the appointment? Why did the current Prime Minister’s predecessor bottle this, despite the fact that he knew about wrongdoings? He told us today that he knew about them.”
“For that reason, the concentration of power must be dealt with, even though the inquiry is not going to deal with it.”
“I know about that, too, from my experience in Northern Ireland, when the Conservative party joined with the Ulster Unionist party before the last election. News International had taken little interest in Northern Ireland politics and politicians, but suddenly there seemed to be an undue interest, in our party in particular. Indeed, a number of our party members were targeted—not that News International ever found any wrongdoing, but there was innuendo, and it was sufficient to sow doubts in the mind of the electorate. That is why politicians will always try to get on the right side of the door. If we are on the wrong side, we know what will happen. We will not get the headlines, and instead we will get the investigations and the innuendo.”
“I hope that will be the case, and I am disappointed that there was not more consultation with the smaller parties representing Scotland, Wales and Northern Ireland about the terms of the inquiry, but I hope that will be remedied in the future. The third reason why I believe we must deal with the concentration of power is that there will always be public mistrust of the news industry if it is felt that one group is so large that it can influence the law and politicians, and get away with things. That is not good for the press and the newspaper industry either, or for those who get on the wrong side of the door. We have seen how it has swung against the Labour party. At one stage that party was the darling of News International—but no longer. At one stage the Conservative party suffered as a result of being on the wrong side of the door.”