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Mr. Clifton-Brown: Will the hon. Lady give way?
Mrs. Liddell: No, I want to make some progress.
I want to make an extremely important point. I could not work out what was happening on the Opposition Benches because Conservative Members were all over the place. Basically, the penny has not yet dropped--the Conservative party suffered a humiliating defeat at the general election. Indeed, some humility might not have gone amiss this evening in some of the speeches by Conservative Members.
We have been in government for two months--[Interruption.] Conservative Members cannot even allow the debate to continue without catcalling and displaying the sort of behaviour that made the people of this country decide that it was time for a change and time for renewed standards in public life.
It was touching to hear the praise that the shadow Chief Secretary heaped on the former Chancellor, the right hon. and learned Member for Rushcliffe (Mr. Clarke). Why, then, did he resign from the former Chancellor's ministerial team? Why did he not vote for him in the recent Conservative leadership election? Has he taken a Trappist vow? Why can he not tell us whether he supports the action taken today by the Monetary Policy Committee and the Bank of England on interest rates? Do Conservative Members still see interest rates as a political tool, to be used for political grandstanding?
Mrs. Liddell:
I shall give way to the hon. Gentleman in due course. Having made his speech, he left the House and has only just returned.
One of the Government's first actions was to bring monetary stability to the economy. On six separate occasions this year, we had seen the Ken and Eddie show. The former Chancellor was repeatedly advised by the Governor of the Bank of England that it was appropriate to raise interest rates, but the right hon. and learned Gentleman was too frightened by his Back Benches and he failed to do so.
Mr. Boswell:
The hon. Lady said that the Government had brought monetary stability to the economy. Is she telling the House that that is a steady state?
Mrs. Liddell:
Monetary stability, over time, will become--[Interruption.] Conservative Members have obviously enjoyed a slightly better dinner than I had. They should reflect on the fact that one of the first consequences of my right hon. Friend the Chancellor's
Mrs. Liddell:
I shall give way to the hon. Gentleman. First, I want to ask him to enlighten the House on whether he agrees with his Front Bench on MIRAS and on VAT on fuel.
Mr. Davies:
The hon. Lady is apparently blind; she is under the illusion that I am on the Front Bench. I assure her that it is not an illusion under which I have ever laboured--nor was I a member of the previous Administration. Because of that, I enjoy the great advantage of being able to speak for myself and to make my own contribution. My views on MIRAS have always been the same--it is a distortion which should be removed. If it cannot be removed immediately, it should be steadily reduced. That has always been my view. If I were a member of my Front Bench, I would have to persuade my colleagues of that view. Only if I succeeded in so persuading them would that become Opposition policy.
The hon. Lady is trying to get away from the Bank of England's decision to raise interest rates. Does she not realise that it was a regrettably necessary response to an irresponsible Budget, which failed to deal with the problem of increasing consumption that was identified in the Government's own Red Book?
Mrs. Liddell:
I am glad that the hon. Member has never found it necessary to be concise. In today's Bank of England press notice announcing the decision of the Monetary Policy Committee, the Governor of the Bank of England mentioned the Budget's contractionary effects. That was a clear indication by the Bank that it recognises the sound actions of the Chancellor of the Exchequer.
Mr. Clifton-Brown:
Will the Minister give way?
Mrs. Liddell:
No, I should like to make some progress.
Some of the points made by Opposition Members have been very interesting, because they seem to have no coherent response to the Budget. In their attack on it, they have been all over the place. In some cases, Opposition Members have said that they appreciate the Government's goals. The hon. Member for East Yorkshire (Mr. Townend) said that he recognised the sense of what the Government plan to accomplish in our welfare-to-work proposals.
I shall attempt to take on board the very confused message sent by Opposition Members. They seem unable to realise that the Chancellor's Budget and the Finance Bill that will implement it have been based specifically on the promises on which we were elected on 1 May.
Mr. Clifton-Brown:
Will the hon. Lady give way?
Mrs. Liddell:
No, I wish to make some progress.
I realise that that must be a bizarre point for any Opposition Member to accept. In opposing the Budget, Opposition Members, regardless of which party they belong to, are opposing the fact that it is a Budget to get the country back to work--specifically to get young people back to work--and to reinvigorate our health service and education.
Several hon. Members mentioned private medical insurance--which is another example of the previous Government's inefficiency. They introduced a measure that had no impact on the people whom they claimed they were trying to help. The decision taken by the Chancellor to provide additional funding to the national health service will do more than private medical insurance--which is a benefit specifically for the few rather than the many--to help elderly people who are concerned about their health.
Mr. Clifton-Brown:
Will the Minister give way?
Mrs. Liddell:
No, I will not give way. I wish to make some progress.
It is interesting that the Conservative party had to go into opposition before they discovered the issue of personal pensions. Where were Conservative Members when people who were suffering the consequences of pensions mis-selling were pleading for assistance? Conservative Members did not assist them.
Conservative Members criticised my hon. Friend the Financial Secretary to the Treasury whenever she made the valid point that the Government's measures are in the long-term interests of the pensions industry. They fail to realise that the performance of companies is based on their being able to retain profits and to reinvest, so that the markets that fund pension companies can be guaranteed that there will be long-term growth.
Mr. Clifton-Brown:
Will the Minister give way?
Mrs. Liddell:
I am intrigued as to which part of no the hon. Member does not understand.
The hon. Member for Daventry (Mr. Boswell) mentioned the actuaries' report. He completely failed to take into account the fact that the actuaries themselves acknowledge that they had failed to take account of the reductions in corporation tax. I did not hear one Opposition Member refer to the reductions for large and small companies. Indeed, I heard one criticising the arrangements that we are making to improve capital allowances to small companies.
Some Opposition Members made much of their own backgrounds in business. They should recognise that one of the most important ways to secure growth in the economy is to ensure that small to medium-sized enterprises can invest and take decisions, unconstrained by the difficulties of trying to raise capital in a competitive marketplace.
My hon. Friend the Member for Eastwood (Mr. Murphy) made an excellent, reasoned and considered speech and went into some detail about the earlier clauses of the Bill. It was edifying to see a new Member taking the trouble to deal properly with the subject in hand. I acknowledge that the hon. Member for Daventry also paid tribute to my hon. Friend.
My hon. Friend made a very interesting and valid point about the nature of our welfare-to-work proposals. We must ensure that the employment that we generate for
250,000 young people leads to real qualifications, which is why, when he addressed the House last week, my right hon. Friend the Secretary of State for Education and Employment went into great detail about the standards that will be expected of schemes to bring young people from unemployment into work.
Mr. Clifton-Brown:
Will the hon. Lady give way?
Mrs. Liddell:
No; I have made it clear that I am intent on making progress.
My hon. Friend the Member for Eastwood also referred to the lack of faith among young people. I am not surprised that, after 18 years of a Tory Government--a Government who behaved exactly as Conservative Members are behaving this evening--young people have in some cases lost faith in the ability of the Government to do something for them. We must reverse that for the good of society. That is why the Chancellor has invited hon. Members from all parts of the House to act as ambassadors to ensure that young people are encouraged to go from welfare into employment. It is a life-enhancing opportunity--[Laughter.] Some Conservative Members, who have never had to confront unemployment, mock people who have and who behave honourably in the face of it.
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