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7.26 pm
Mr. Jim Murphy (Eastwood): I should like to speak in support of the Bill and the measures in it, but before I do so I should like to pay credit to the hon. Member for North Shropshire (Mr. Paterson), who made a maiden speech of much interest and detail, although many of his arguments were flawed. I should like to pick up on two issues that he raised; first, the serious matter of his missing fridge and, secondly, his wife's family.
I am jealous of the hon. Gentleman because, as a new Member, I do not have an office big enough for a fridge, so perhaps he would like to organise an office swap or at least a shared fridge.
As for the hon. Gentleman's wife's family, he will be aware that the Labour Government are committed to abolishing the hereditary right of peers to vote. Perhaps someone should introduce a private Member's Bill to end the hereditary right of the hon. Gentleman's wife's family to be elected as Members of the House, particularly given the hon. Gentleman's description of some of them. I am sure that he will not follow the acrimonious and contentious path taken by some of them.
I should like to refer to clauses 1 to 5 and respond to the debate that has taken place tonight and during the Budget debate. I should also like to reply in particular to some of the points raised by the hon. Member for Grantham and Stamford (Mr. Davies), although I note that he has now left the Chamber.
The hon. Member for Roxburgh and Berwickshire (Mr. Kirkwood), who spoke on behalf of the Liberal Democrats in yesterday's debate, described our
welfare-to-work project and the windfall levy as rough justice. Labour Members contend that they are nothing of the sort--indeed, quite the opposite. Perhaps the sanctimony that comes from decades in opposition--and the continuing prospect of further decades in opposition--has clouded the hon. Gentleman's judgment. Our plans, contained in the Finance Bill, are fair to the consumer, fair to the unemployed and fair to the economy.
The utilities have built up excess profits that could be put to much better use. The original price caps on the utilities were far too generous and the price controls on them were far too limited, so they were able to build up enormous cash surpluses. In its survey, the National Consumer Council identified that in the two years between 1990-91 and 1992-93 the electricity companies were able to benefit from increased profits of 48 per cent. That figure highlights the need for us to levy a one-off windfall tax.
It was the previous Government's inability to act that made it unfair for consumers. I welcome the review on regulation to be carried out by my right hon. Friend the President of the Board of Trade. I also welcome the promise made by my right hon. Friend the Chancellor that the cost of the windfall levy will not be borne by the consumer.
This Government, unlike the previous Government, have priorities based on detailed experience of the unemployed rather than outdated dogma. We are determined to end the scourge of youth unemployment and long-term unemployment and to invest in the long-term future--in the raw materials and individuals of this country. The Government's statistical unit identifies that 85 per cent. of people who are unemployed for less than one month find work, but it also shows that fewer than a quarter of people who are unemployed for more than a year go directly into work. Those figures--every one of which is an individual human tragedy--show why the Government are properly motivated and are addressing the problem of long-term unemployment. They show that the longer someone is out of work, the harder it is for them to get back into the marketplace. That is the rationale and justification for our windfall levy. The hon. Member for Roxburgh and Berwickshire spoke about rough justice, but it is nothing of the sort. The windfall levy is about economic justice and social justice, which is why we are so eager to implement it only 10 weeks after coming into office.
I have spoken about the Liberal Democrats, but I also want to mention the Conservatives, whose response has been strange. Conservative Members want to protect the excess profits of the privatised utilities and prevent an opportunity to help the young and the long-term unemployed. The Tories' response to our welfare-to-work programme and the windfall levy has seemed hysterical and makes the privatised utilities' response look measured by comparison. The share prices of the companies have risen since the announcement. The threat of a legal challenge against the Government from some of the companies has receded--no doubt despite encouragement from Conservative Members, who are perhaps disappointed.
Hon. Members will be aware that in Scotland, Ian Robinson of Scottish Power has taken on the responsibility of leading the task force of welfare to work.
That is a strong symbol of the way in which we can we work together to deliver job opportunities for young people. The Tories seem to be more opposed to the windfall levy than the privatised utilities are.
In my few short weeks in the House I have come to understand something about the nature of opposition. It is my understanding that the Opposition should give credit where it is due. That is a lesson that the Labour party learnt towards the end of its period in opposition. It was certainly a characteristic of the rehabilitation of the new Labour party. I have no doubt that the Conservatives' inability to learn that lesson will end in the ruination of a tired Tory party.
The Tories complain about opportunity and then take every opportunity to complain about our windfall levy and job opportunities that it will provide for young people. As hon. Members are aware, the country will not thank the Tories for their 18 years of intransigence on the subject of job opportunities for the young and their 10 weeks of outright hostility to our new deal for young people and the long-term unemployed.
This is my second speech in the House. As well as knocking the Liberal Democrats and the Conservatives for what they have failed to do in opposition and in government over the past 18 years, I should also like, as a Back Bencher, to ask Ministers for some clarification of their plans. I seek some important clarification on the one-off windfall levy. Of course it was a one-off levy: it is unique. Unlike the Conservatives, who introduced 29 different schemes for job opportunities, job creation and welfare, we are introducing our new deal for the length of the Parliament.
We inherit a problem because there is a lack of faith among many unemployed people, particularly the young unemployed, who have experienced months--sometimes years--of failed schemes under the previous Government. They need to make a leap of faith. What measures do we, as a Government, have planned to encourage that leap of faith? Do we have any plans for a clear statement about the rights and responsibilities of the individuals and of the employers, who are so crucial to our ability to deliver this project?
I also seek clarification about the quality standard marks that we will use in government to measure the Bill's progress. I should like clarification, perhaps not this evening but as we move towards the implementation of the new deal, of how we intend to track the many thousands of people who will undoubtedly benefit as a result of our adventurous and imaginative plans.
When I was investigating the levels of youth unemployment in my constituency of Eastwood, I found that the level of long-term youth unemployment was just below 40 per cent. That figure concerns me and my constituency. After all, Eastwood had been the safest Conservative seat in Scotland, yet it suffered from 40 per cent. long-term youth unemployment. The tables delivered to me by the House of Commons Library reveal the true level of youth unemployment in some constituencies in Northern Ireland. Ten Northern Ireland constituencies have long-term youth unemployment of more than 50 per cent. and in two constituencies the level is more than 60 per cent. For West Tyrone, the figure is 62 per cent. and for Mid-Ulster it is 60 per cent.
I know that Northern Ireland Ministers are not present this evening, but I think that the Under-Secretary of State for Northern Ireland, my hon. Friend the Member for
Clydebank and Milngavie (Mr. Worthington) is working on some specific measures and I look forward to receiving details. I should like to know what specific plans we have to overcome the abominable levels of long-term youth unemployment that exist in Northern Ireland.
We are all aware of the phrase, "The devil finds work for idle hands". To call the paramilitaries the devil would be to pay them too much of a compliment, but if we do not help many of the young people of Northern Ireland to change their life style and find opportunities, I fear for some of their futures. I should welcome some information about how we plan to address the problems in Northern Ireland.
I welcome the news from the Government that they intend to reform the 16-hour rule, thus enabling the unemployed to study part time. I welcome the plans for those reforms because I benefited from that scheme. I studied part time while being unemployed and that took me on to university and, ultimately, to my place in the House. Some hon. Members might say that that is a reason to clamp down on the 16-hour rule, but it was definitely one of my first steps towards becoming a Member of Parliament.
Only 14 per cent. of those who are currently unemployed are studying, and more than 25 per cent. of those who are currently working are involved in study. I should like to consider ways in which we can improve educational and training opportunities for those people. That is why I welcome the windfall tax and the welfare-to-work programme. We have identified four quality pathways out of difficulty and depression and a place on a scheme for education and training at college is just one of those opportunities.
My experience of studying occurred just over 10 years ago. I shared the lecture theatre with mature men and women who were unemployed and some who had families. The transformation it brought about in their lives was remarkable. Although I have lost contact with many of those people, I have not lost touch with that experience and, as I have said, I welcome the Government's plans to reform the 16-hour rule.
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