House Of Commons
Monday 1 December 1997
The House met at half-past Two o'clock
Prayers
[MADAM SPEAKER in the Chair]
Oral Answers To Questions
Defence
The Secretary of State was asked—
Territorial Army
1.
What steps he is taking to ensure that Territorial Army units can continue to conduct unit-level exercises and participate, as units, in formation-level training. [16794]
Territorial Army units take part in a minimum of six days collective training each year and two of those are spent on a unit or formation-level exercise. The future training requirement for TA units will depend on the outcome of strategic defence review work into the future size and shape of the Regular and Reserve forces.
Is the Minister aware that such unit and formation-level exercises attract and retain the best-quality people in the TA? Is it true that an admiral has been asked to head the relevant strategic defence review team which will conduct the Reserve forces study? The Royal Navy has so run down the resources for its own Reserve that it is now almost the worst-recruited section of the Reserve forces.
In response to the first part of the hon. Gentleman's question, we recognise the importance of collective training for individuals. The TA units took part in four formation-level exercises this year, compared with two last year, and four are planned for next year. We shall obviously bear that in mind during the strategic defence review considerations.
As regards the make-up of the project team, senior personnel at two-star level have been given the task of overseeing each of the main project areas under consideration in the strategic defence review. The study on the Reserves is being conducted by a mixed civil and military team and includes the Director of Reserves and Cadets, Richard Holmes, whom I shall see tomorrow as part of those discussions. Brigadier Holmes and that group are overseen by an assistant chief of the defence staff programmes, who, as the hon. Gentleman says, is an admiral, but is also a purple post.May I remind my hon. Friend that the oldest Territorial regiment in the British Army is the Royal Monmouthshire Royal Engineers, based in Monmouth in my constituency? Does he agree with me that the outstanding work that it has performed in Bosnia recently demonstrates the important operational role that the Territorial forces can play following the strategic defence review?
I thank my hon. Friend for that observation. I am sure that the whole House will join me in paying tribute not only to the generality of the TA, but, in particular, to the Royal Monmouthshire Royal Engineers. We particularly recall those who have done and continue to do such sterling work in areas such as Bosnia. We are truly fortunate to be able to call upon such dedicated, professional and highly motivated individuals who make up the voluntary Reserves. We are intent on ensuring that their use is as flexible as possible. Indeed, only today, a reservist officer has been called up for service with UNSCOM in Iraq, which again demonstrates the flexibility and utility of our Reserve forces.
Royal Engineers
2.
If he will make a statement on the (a) financial and (b) service personnel impact for the Royal Engineers of his Department's land mines strategy. [16795]
Our land mines strategy will have no significant impact on the operating costs or manpower of the Royal Engineers. I am pleased to say that they will be playing a direct role in the Mine Information and Training Centre at Minley.
I am grateful for that reply. Does the Minister envisage that Royal Engineers personnel will play a more active role on the ground in mine clearing overseas?
In peacetime, it is not the role of our soldiers to get involved in humanitarian mine clearing, although they have considerable expertise in the clearance of areas following conflicts. I assure the hon. Lady, and I am proud to say, that the Royal Engineers will play a distinguished part in the work of the Mine Information and Training Centre. Its expertise and knowledge will be used in Government and non-governmental organisations to ensure that the task of humanitarian de-mining, which is of such great importance in the world today, is conducted in the most professional and expert way possible.
With the Ottawa treaty being signed this Wednesday, does the Secretary of State agree that we should now be concentrating on the task of ridding ourselves of those land mines that have already been sown? Will he tell us more about what the Government will be doing to assist those involved in the humanitarian task of de-mining?
My hon. Friend is absolutely right. A significant moment in history will occur on Wednesday when my right hon. Friend the Secretary of State for International Development will be in Canada to sign the Ottawa treaty, which will ban the export, import, transfer, manufacture and, ultimately, use of anti-personnel land mines. That, in itself, is one step in the direction in which, I believe, the world wishes to go.
All across the globe there are the legacies of previous conflicts—areas that cannot be walked on owing to the potential terrible, wanton destruction of anti-personnel land mines that lie in the way of so many civilians. I am pleased to say that British Army expertise is to be used at a much greater level to assist in that project. Already, British troops have been involved in helping to rid parts of the world of the scourge of land mines. Those areas include Afghanistan, Angola, Belize, Cambodia and Cyprus. This country played an important part in establishing the United Nations mines action centre in Bosnia. We shall play our part and I hope that other countries will do the same.Is the Minister aware that the position of the head of his Department's humanitarian mine clearance is as yet unfilled and there is a sense of urgency and concern in the mine clearance community that it should have been filled earlier?
I can assure the hon. Gentleman that, in every area where there is concern on humanitarian de-mining, we are moving with expedition. My visit to Bosnia was designed to highlight a new five-point programme on humanitarian de-mining. Colonel Alastair McAslan has been nominated as the British Army's representative on humanitarian de-mining. We are fulfilling all the obligations which, as a major military nation, we should.
I hope that the Secretary of State had an interesting visit to the Royal School of Military Engineering at Minley in my constituency. I was interested to hear him say that he reckons that the centre of mine expertise will not have a significant financial impact. When it was announced in October, it was reported that it would cost £125,000 to set up the centre. Will that money come out of the defence budget or that of the Overseas Development Administration?
Of course it will come from the defence budget, as it should, as it involves military de-mining. I hope that the hon. Gentleman is as proud as I am of the work that has been and will be done at Minley. The £125,000 is a good investment in the sort of jobs that will be done at that establishment by the Royal Engineers.
Former Prisoners Of War
3.
If Her Majesty's Government will repay to former prisoners of war the amount deducted from their pay on which they had paid taxes and which was not refunded to the German and Italian Governments in a post-war settlement. [16796]
My decision on the review of officer prisoners of war and protected personnel pay deductions during the second world war was taken after very careful consideration of the submissions from ex-officer prisoners of war and protected personnel, and of the long and detailed report of the review, a copy of which is in the Library of the House. I concurred with the findings of previous Ministers that the contemporary evidence did not support the claims being made for further refunding of deductions.
The Minister will be aware that this matter was discussed in the House earlier in the year, when there was support for the plight of ex-officer prisoners of war on both sides of the House. They will be disappointed in the answer that he has just given to my question. One of those who will be disappointed will be my constituent, Squadron Leader B. A. James MC, who, along with thousands of other people in the same circumstances, feels that he has been ignored and treated very badly. This question has rumbled on since 1980 and it is disappointing to hear the Minister say that he is not prepared to review the matter. Those involved would like there to be an independent inquiry at which prisoners of war could express their evidence in a way that they have previously been unable to do.
With respect to the hon. Gentleman, we have, as promised, reviewed the situation. I have gone through a mass of documentation, including representations from ex-officer prisoners of war and protected personnel, and through the documentation produced by the Department. However, after full examination, I have to say that the case is not made, which is why we felt it right and proper to confirm the previous Administration's decision.
Roughly how many people and how much money are involved?
There is considerable argument about several aspects of this matter, especially as much of it relates to records that no longer exist. All the issues were fully discussed in the House and fully examined by the then Government after the second world war and decisions were made on that basis. Successive Governments have gone through the information and confirmed those decisions because the case for doing otherwise has not been made.
I understand that the Government accept that money was deducted from prisoners of war and should therefore have been paid back after the war; but that, now that they have lost all their records, it is impossible to go over the case once again and decide who should be paid and how much. Can we have an assurance from the Government that, at least, individuals who have kept their own records and can prove how much they lost will be paid back?
The hon. Gentleman is not looking at the case. In reality, a number of those who came back after the war were refunded by the authorities. There was discussion about that at the time. In a number of other cases, camp funds were put together, but that is a separate issue. Many of those who had had moneys deducted and who were able to demonstrate that they did not receive the moneys in the camp got a refund after the war. All that forms part of the body of facts that we have established and gone through, which is why we made the decision.
In preparing the report, what steps were taken to ensure that the first-hand experiences of the officers involved were reflected in that report? Is the Minister aware that those ex-prisoners of war, who served our country valiantly and selflessly during the last world war, feel strongly that they have been cheated and that they cannot get justice? Would it not be wiser to offer some consultation with them or, better still, to appoint an independent person to arbitrate on that matter?
All hon. Members, this Administration and previous Administrations fully understand the tremendous contribution made by many of those individuals, both before they were taken prisoner and, in many cases, afterwards, when they tied up many German and Italian troops in trying to recapture escaping prisoners of war. That is common ground. When we move on to the question of whether deductions were adequately repaid, we find that many of the investigations took place immediately after the war, that the issues were discussed in the House of Commons and that parliamentary questions were tabled. At that time, contemporary evidence was closely examined, which is why the previous Conservative Government made the decision that they did and why, having examined the evidence after having entered office after the general election, we had to concur with their finding.
Will my hon. Friend accept that much of the evidence on which he relies was produced before the election of the Labour Government? Several of my constituents have written to me saying that they understood that they had no hope with the other lot, but that they hoped that fresh consideration would be given to this matter. Much of the evidence put to me and to my hon. Friends is new evidence, and I ask that it be reconsidered.
Much of the evidence was considered by the Attlee Labour Government after the last war and the issues examined by those who were much closer to the evidence at the time. That evidence was re-examined by the previous Administration and by this Administration and, when we did it, we looked at a number of representations from those with an individual viewpoint, both officer POWs and protected personnel. We examined that evidence and compared it with the contemporary evidence and with the documentation. It was for that reason that we took our decision.
Royal Yacht
5.
What recent representations he has received anent the future of the royal yacht Britannia. [16798]
9.
If he will make a statement on the future of the royal yacht Britannia. [16802]
My Department has received a large number of approaches about Britannia's future. Seven substantive preservation proposals are being examined in detail. I should prefer the yacht to be preserved, providing that the use is fitting and that there can be adequate arrangements to ensure that her fine appearance can be maintained. I hope to be able to make an announcement shortly.
I am pleased that my right hon. Friend has decided to ignore the suggestion, or request, from Buckingham palace that the vessel be scuttled or scrapped. Does he agree that neither London nor Leith has a legitimate claim on her and that, in all fairness, she should go to the Clyde, to be berthed at the Govan dry dock close to the proposed science park? The ship should not finish up at the bottom of the Atlantic; she should be returned to the Clyde, where she was built.
Buckingham palace has been kept closely informed of the options for the ship's future, and has made it clear that the decision should and will be taken by the Government. Britannia is regarded by most people as a national treasure. She has given 44 years of distinguished service to the Queen and the country. My preferred option is that the yacht should be preserved, but its use must be fitting and there must be adequate arrangements to maintain its appearance. All seven bids will be considered fairly and in detail, and we shall come to a conclusion in the near future.
May I press the Secretary of State further? When will he come to the House with a decision? The public are greatly concerned that the yacht's use should be appropriate. May I make a plea for the south coast—particularly for Portsmouth, which has a very good claim to have the yacht berthed there?
It is critical that we look at each of the proposals in some detail. I am concerned to preserve Britannia, and to ensure that her dignity and long-term future are absolutely assured. I shall take no prior view of which option is best. They will all be considered on exactly the same basis, and I hope to be able to make a decision shortly.
The hon. Member for Poole (Mr. Syms) has just issued a plea for the south coast. It will not surprise my right hon. Friend if I rise to make a plea, backed by the representations, which I know that he has received, for Plymouth. I ask not only that the vessel be preserved but that, by means of a private finance initiative, she is kept in use. I hope that my right hon. Friend will give serious consideration to that idea, along with the other representations that he has received.
I am not certain whether my hon. Friend made a slip of the tongue when she said Plymouth—perhaps she meant Portsmouth, as Plymouth has not entered a bid for consideration. We need to take a dispassionate and objective view of the proposals, and to consider all representations. I appreciate that there are strong views in each of the localities involved in the decision. They serve to underline the fact that there are strong feelings in the country that Britannia should be preserved. It is my responsibility to ensure that, if she is preserved, that is done in a way most fitting for the ship and for the country.
Most of my constituents will be delighted that the Secretary of State shares their opinion and not the opinion of the Princess Royal, which was that the ship should be scuttled. Indeed, they have made a strong case for Britannia to go to her natural home, in Portsmouth. However, if the ship is to be kept as a national treasure, I suggest that that can be done only if the Government keep some control over her by providing a dowry to ensure that the ship is restored in the way most people would expect her to be.
It has been made clear that there will be no call on public funds, but we must ascertain that in connection with any of the seven bids that are being considered. The Britannia will not be replaced or rebuilt; that decision is final. All the private finance options would have been viable only with substantial amounts of public money. I appreciate that, inevitably, the hon. Gentleman will favour the Portsmouth option, and it will be carefully considered among all the other options.
I look forward to being in Portsmouth next Thursday for the decommissioning of HMY Britannia.Defence Diversification Agency
6.
If he will make a statement on the Government's plans for a defence diversification agency. [16799]
Our aim is to fulfil our manifesto commitment to facilitate the wider application of defence industry expertise to civil uses. Although I previously announced our hope to publish a Green Paper on this before Christmas, preparatory work has taken longer than anticipated. We now expect to publish the Green Paper early in the new year. However, I can assure the House that this remains a matter of the highest priority.
I thank my hon. Friend for his assurance that this remains a priority, especially in the light of a survey of companies in my Redditch constituency with defence involvement, which suggested that, despite a reduction in their defence turnover, they believe that jobs could be preserved by defence diversification. What role will there be for the Defence Evaluation and Research Agency in the Government's plans for defence diversification? Will the Government learn from the experience of industries and other countries in that process?
I thank my hon. Friend for raising the question of industries in her Redditch constituency, because many of those are the small and medium enterprises that are very much the core of our defence industry. Sometimes we concentrate too much on the prime contractors, to the exclusion of SMEs.
Obviously, I cannot go into all the details of the paper now but, in answer to my hon. Friend's question about the Defence Evaluation and Research Agency, we shall consider how to diffuse the technology and expertise in the agency into the wider economy. We shall study the experience of many of the major companies in this country that have diversified some of their activities, and the example of other countries—not least the United States—and the successful work that they have undertaken in diffusing defence technology more widely into industry.Departmental Land And Buildings
7.
What estimates his Department has made of the potential for disposal of its land and buildings over the next five years. [16800]
In addition to forecast receipts this year of £140 million, we expect to receive about £200 million over the next two years for land and buildings that have already been identified as surplus. The strategic defence review is examining vigorously the scope for further disposals.
I thank my hon. Friend for that answer. Can he assure me that the review is as vigorous as possible, to ensure both that every possible piece of land and building that can be disposed of in the new defence situation that we are facing can be sold and the money realised for the nation and that use of large parts of our land will not be blocked?
There has already been a considerable reduction in the defence estate. Further disposal will follow the identification of other areas. Of course we want to ensure that land and buildings are used to the maximum efficiency, not only to realise money for the defence budget but, quite properly, to ensure that land is available for regeneration and housing. Many local authorities are discussing those matters with us and many hon. Members are approaching us with useful, imaginative and exciting ideas for the use of that land.
Can the Minister give an undertaking that, when defence land is released, the broader range of issues will be taken into account? I think especially of land in my constituency at Royal Clarence yard, where the Ministry of Defence is proposing to retain nine and a half acres, which is central to the millennium project for the development of Portsmouth harbour. Will he ensure that the Ministry of Defence is given an assurance by Government generally that broader interests are taken into account?
I thank the hon. Gentleman for that point. We try to take regeneration issues into account and to work with local authorities and other planning agencies wherever possible, but in many cases we must retain sites for strategic defence interests. We should not consider alienating that land if it were to the detriment of training or of the operations of the services. We are mindful of the need for regeneration and the ability, through that, to contribute to the regeneration of the whole country.
Where land and buildings are surplus to the Department's requirements, will the Minister liaise closely with planning departments, such as those in Hampshire, to see whether the sites could be put to housing use, thereby reducing the threat of green-field development on which so many of his hon. Friends seem hellbent?
I thank the right hon. Gentleman, who perhaps strayed into one of his previous incarnations in asking that question; but I take his point. We try to work with planning authorities at an early stage. That is important because it can facilitate the disposal of land, which can then be brought into effective use for the benefit of the community—with, incidentally, the best possible return for the defence budget.
Nato
8.
What assessment he has made of the cost to Her Majesty's Government of NATO expansion. [16801]
Our assessment is that the costs associated with the enlargement of NATO to include Poland, Hungary and the Czech Republic will be manageable. I and other NATO Defence Ministers will be considering tomorrow a report from NATO staffs on the military and financial implications of enlargement.
I thank my right hon. Friend for that answer, but I have been asking the question for some time and I would have expected the Government to have been able to give an assessment of the costs of NATO expansion by now. Can he assure us that the cost of expansion will be met from the current defence budget and that he will not be asking for an extra penny from what many of us already consider to be much too large a budget?
Any additional cost to our NATO subscription arising from enlargement will be met from the defence budget. Currently, that subscription costs 1 per cent. of the funds allocated to the defence budget. I believe that NATO is worth every penny that we spend on it.
I have just told my hon. Friend that, tomorrow, Defence Ministers will receive the report from NATO on its assessment of the cost of enlargement. I would be most surprised if NATO expenditure were to rise significantly in real terms. There will certainly be a cost, but we believe it to be manageable and we shall pay our contribution.Will the right hon. Gentleman confirm that there is no pressure on Poland, Hungary or the Czech Republic to spend huge sums trying to integrate into NATO? Will he also confirm that there is no pressure on us and no urgent requirement beyond what might be described as command and control procedures, integrated air defence and so on?
I assure the right hon. Gentleman that the cost of NATO enlargement will be spread over a considerable period. For the new countries—the invitees to the membership of NATO—participating in collective defence is preferable to, and cheaper than, attempting to provide the same security on a national basis. Any nation—ours as well as the new countries—must be secure before it can do anything. Inevitably, the new countries would have been involved in assuring their future security by expenditure on military capability. Our country has been able to live in peace and security for almost half a century because of our membership of NATO. It is clear that the 12 nations that have applied for membership did so because they wanted the same.
What savings would come to the United Kingdom if we were to link our defence expenditure to the average of other western European countries?
I do not believe that we should link our defence expenditure to any average or any particular figure. This country should be defended strongly and it should be defended well. It is important that we establish the priorities for our country not only as a nation, but as a partner in NATO and a member of the United Nations Security Council. We make our own decisions. That was the position taken by the Labour Government in 1945 when they took Britain into NATO, and it is the position taken by the Labour Government who were elected this year.
The hon. Members for Cynon Valley (Ann Clwyd) and for Blaenau Gwent (Mr. Smith) asked about the size of the budget. Does the Secretary of State agree with what the Chancellor of the Exchequer said in last week's pre-Budget statement: that defence is not a priority?
The right hon. Gentleman knows that the Labour party was elected on a manifesto that said that we would assure the strong defence of this country. Of course it is a priority and it will remain so. This nation's defence is safe in this Government's hands.
Heavy Lift Transport Aircraft
10.
What assessment he has made of the adequacy of heavy lift transport aircraft in Royal Air Force service. [16804]
Our strategic lift requirements, in terms both of air lift and of sea lift, are being scrutinised closely in the strategic defence review, which aims to ensure that our armed forces are properly equipped to undertake their tasks. That scrutiny is, of course, informed by my Department's assessment of the adequacy of our currently available assets.
I am grateful for that answer. In peace maintenance as in war fighting, is it not important to get to the critical spot firstest with the mostest, particularly when the United Kingdom is increasingly withdrawing from overseas bases? Will the Minister therefore assure the House that, after the review, the RAF will be able to procure at the earliest possible date a proven aircraft—the C17, which can carry a main battle tank and has been an admirable aeroplane in the United States air force?
The hon. Gentleman, who is well known for his interest and expertise in these matters, is absolutely right about the nature of the threats we now face. The old simplicities and certainties of the cold war have gone. We live in a more volatile, less predictable world and our ability to react quickly is paramount. It is also important that we have a variety of equipment, which the RAF cannot, at present, move by air. My right hon. Friend the Secretary of State has been at pains to make that point. Several options merit consideration, including, perhaps, the future large aircraft and C17.
When considering the future of RAF heavy lift, will my hon. Friend ensure that adequate attention is paid to preserving aircraft that have served us well, particularly as we approach the millennium?
That is absolutely correct. I am pleased to say that, today, I presented a charter mark award to the RAF museum, which has played such an important role in maintaining and exhibiting our RAF heritage. I am also pleased to tell the House that, Treasury and Parliament permitting, as of today the RAF intends to pass the ownership of the vast majority—121 out of 122—of its historic aeroplanes to the RAF museum, thus showing our confidence in it and our commitment, as we approach the millennium, to retaining the heritage of past generations of the RAF for future generations.
Regiments
11.
What assessment he has made of the importance of the regimental system. [16805]
The strategic defence review's examination of the future structure of the Army is taking full account of the recognised strengths of the regimental system. It would, however, be premature for me to speculate on any particular aspect of the review's outcome.
I welcome the Minister's statement because I know that he is personally committed to the regimental system. Will he ensure that the strategic defence review does not undermine the system, which is one of the strengths of the British Army? Does he agree that the current selection procedures throughout the armed forces and in regiments are based on merit and not anything that is politically correct?
I whole-heartedly agree with the hon. Gentleman on both statements.
Does my hon. Friend agree that tradition in the regimental system can be a burden as well as a benefit? What steps will he take to ensure that regimental traditions that restrict access to the officer class are swept away? In particular, what steps is he taking to ensure that youngsters who are not from public schools can become officers and, say, guards in the cavalry regiments?
I have the utmost respect for the esprit de corps, the ethos and the almost concrete capacity of the regimental system to instil the will to fight in men—and, I hope, women—in the most difficult circumstances. As for the second part of my hon. Friend's question, we have made it clear that we want the best and the brightest in the British armed forces. We want the widest possible pool of recruits and we want the pathways to progress in the armed forces to be open to all, irrespective of sex, ethnic background or social class. We shall maintain that commitment.
On how many occasions since 1 May has the chain of command's responsibility for military discipline been the subject of intervention by Ministers, including the Lord Chancellor?
As far as Defence Ministers are concerned, none. I hope that the hon. Gentleman recognises, when he makes such imputations, that although he may be attempting to slur the Government Front Bench, he is also—wrongly—bringing into question the integrity of those in the Army chain of command, who would never allow such a thing. As for the hon. Gentleman's reference to the Lord Chancellor, I have no intention of commenting on internal advice or correspondence between Ministers, which I have already withheld under exemption 2 of the code of practice on access to information. The hon. Gentleman should know that that is always the position taken on such matters.
Ethnic Minorities
12.
What steps his Department is taking to improve levels of recruitment from the United Kingdom's ethnic minorities. [16806]
Our aim is that the armed forces should fully embrace diversity and better reflect the ethnic composition of the society they defend. I am glad that all three services are tackling the issue with considerable energy, and that a number of local initiatives are in place. Complementing those are the tri-service initiatives in Newham and Sandwell and the Army's specific ethnic minorities recruitment campaign.
Does my hon. Friend agree that the number of men and women from our ethnic minorities who serve in the armed forces is disappointingly low? I think that it is about 1 per cent. I welcome the Army's new recruitment initiative. What are the other two services doing?
I agree with my hon. Friend. She will know that we are determined to ensure that access to our armed forces is open to the widest possible reservoir of talent. She may be aware of our initiatives in Newham and Sandwell. She will also be aware that the Ministry of Defence is 19 months into a five-year action plan with the Commission for Racial Equality. I welcome the recent initiative of the Chief of the General Staff, who introduced a series of measures to combat racism in the Army whenever it raises its head. I am glad to announce that the Army and the Royal Air Force are today introducing a confidential support hotline for counselling and advice on such matters. It will operate outside the chain of command and has the support of the chiefs of the services and the chain of command.
I welcome the Minister's comments. I urge him to meet the chairman of the Greenwich foundation for the Royal Naval college to discuss the options for ethnic minority recruitment. Will he also reassure us that the delay and the buck passing will come to an end and that the outstanding questions will be resolved so that that jewel in the nation's heritage is properly established and occupied in time for the millennium?
Order. That question does not have much to do with recruitment.
Yes, it does.
Not in my judgment.
Is not one of the least attractive features of bullying in the armed services the fact that it is often related to racism? That provides a substantial disincentive for people from the ethnic minorities to join any of the armed services. Should not such matters be the responsibility of the chain of command? Is it not clear that if there is bullying and racism in any unit, the ultimate responsibility must rest with the commanding officer of that unit?
I am not sure whether the hon. and learned Gentleman was here when I praised the chain of command and the chiefs of staff for the proactive, dynamic and absolutely committed way in which they have approached racism and bullying in the armed forces. I have no hesitation in saying that this is not being pushed as a political imperative on the chiefs of staff; it is a measure to which they are individually and collectively committed. I congratulate them on that. It is also a matter for congratulation that they have introduced, for the purposes of counselling, an independent hotline, which will serve as another building block to combat racism in the armed forces.
Trident
13.
How many representations his Department has received on the Trident nuclear weapons system since 1 May; and how many (a) supported and (b) opposed retention of Trident. [16808]
We have received more than 150 letters and submissions about our nuclear deterrent since inviting public contributions to the strategic defence review. The majority have called for Trident to be included in the review. We have already made it clear that the review will examine all aspects of our deterrent postures to ensure that it meets changing strategic circumstances.
My right hon. Friend will recall that retaining Trident was a manifesto commitment of both Labour and the Tory party at the general election. Will he acknowledge that it is, at the very least, open to interpretation whether the British people embraced Trident by voting Labour in or rejected Trident by voting the Tories out? Given that uncertainty, will he take on board the latest polling evidence, which shows that 63 per cent. of British people believe that money spent on Trident is wasted public expenditure and that 59 per cent. of British people believe that this country would be much safer without nuclear weapons altogether? If we really are the people's Government, why do we not listen to the people and rid ourselves once and for all of these obscene weapons of mass destruction?
I should point out that the competition to my hon. Friend in Dundee, East came not from the Tory party but from the Scottish National party, which was in favour of abolishing Trident—and that my hon. Friend won and the SNP lost. Does not that suggest that people are in favour of Trident? Whatever is the preponderance of letters in the postbag or the outcome of occasional opinion polls, people believed what we said in our manifesto and they have every right to believe that we will conduct ourselves differently from the previous Government.
The retention of Trident was one of the policy principles on which we will base our work in the strategic defence review, but within that framework the review will look at all aspects of our current deterrence requirements, including nuclear warhead numbers. We are committed to the global elimination of nuclear weapons. There might be some differences on how we get to that point, but the British people were in no doubt when they voted for my hon. Friend and me in the general election.I welcome that robust response from the Secretary of State. Is he aware that, throughout the 1980s and early 1990s, when anxiety about nuclear deterrence was at its height, the Campaign for Nuclear Disarmament consistently produced strangely worded poll questions to get results such as that which has just been cited, but that whenever the British public were asked: "Do you think that Britain should continue to possess nuclear weapons as long as other countries have them?" poll after poll showed two thirds of British people in favour of retention and never more than a quarter against it?
I am not concerned with the ups and downs of individual opinion polls. After many years of deep consideration, the Labour party came to the electorate with an absolutely clear commitment to the retention of the Trident submarine fleet and with a much more urgent and determined attitude to arms control—especially nuclear arms control—than any previous Government. That is one reason why we were so emphatically returned at the general election.
Armed Forces (Women)
14.
What steps his Department is taking to expand employment opportunities for women in the armed forces. [16809]
Women already make a substantial contribution to the armed forces and serve alongside their male colleagues in many roles. My right hon. Friend the Secretary of State announced in a defence debate on 27 October that, from April next year, the proportion of posts open to women in the Army will rise from 47 to 70 per cent. We have also commissioned a review that will enable us to decide whether any of the remaining restrictions on employment opportunities for women in all three services can be reduced or removed.
I thank my hon. Friend for that answer. Does he agree that women have always proved themselves—especially in Bosnia, as I have witnessed—able to take part in the armed forces? Does he agree also that women are capable of taking part in combat roles in the Royal Navy? Does not that put paid to the claim that women are not suitable and that such roles are suitable only for the chaps? Thank you.
It is a pleasure. The Government, as my hon. Friend would expect, and the armed forces are committed to expanding career opportunities for women. My hon. Friend may be interested to know that service women now represent 7 per cent. of total strength and that in the 12 months to 1 September 1997 14 per cent. of new recruits were women. As I said earlier, my right hon. Friend the Secretary of State announced on 27 October that from 1 April next year the proportion of posts in the Army open to women will increase to 70 per cent.
I am glad to say that the Ministry of Defence has a good working relationship with the Equal Opportunities Commission. Later today I shall meet Kamlesh Bahl, its chairwoman, to see how much further we can expand opportunities for women in the armed forces.Church Commissioners
The hon. Member for Middlesbrough, representing the
Church Commissioners, was asked—
Ethical Investments
33.
What assessment he has made of the impact of the contacts between the Church's ethical investment working group and GEC on GEC's arms exporting policy. [16829]
In the absence of my hon. Friend the Member for Middlesbrough (Mr. Bell), I am answering these questions as a Church Commissioner and as the member of the Cabinet with responsibility for Church matters.
The commissioners believe that the impact has been positive. The ethical investment working group put four questions to the company at its annual general meeting on 5 September as an encouragement to GEC to disclose hopeful information in a public arena about its defence-related business. The group will continue to inform itself about GEC's business strategy and will maintain contact with the company.I am grateful to my right hon. Friend for that answer. May I put it to him, however, that since the so-called dialogue began, GEC has continually expanded its defence manufacturing and increased its exports to Indonesia—a country with one of the worst human rights records? Is there any point in this dialogue if that is the result?
I think that there is. It is fair to say that the commissioners are now being much more proactive about their investments in pursuit of their approach not to invest in any company whose main business is in armaments, gambling, breweries, distilleries, tobacco or newspapers.
I understand that, over the past three years, GEC's exports to Indonesia have totalled only £20 million and comprised simulation and training equipment for the navy, short-wave broadcasting equipment for the national network, transmitters for commercial broadcasters and five omniphones.Does the Home Secretary appreciate that, in a constituency with four GEC companies in it, a distinction must be drawn between weapons and weapons systems that are produced for the bona fide defence of a country from external attack and weapons such as land mines, that are universally condemned?
The hon. Gentleman makes an entirely fair point. Speaking not as a Church Commissioner but as the Member of Parliament for Blackburn, I must tell the House that many of my constituents' jobs depend on defence contractors. It is also fair to add that NATO countries account for some £2 billion of the £2.4 billion—85 per cent.—of GEC defence sales.
Pensions
34.
What assessment the Church Commissioners have made of the impact of pension provisions on the number of people applying for a career in the Church since Parliament approved the current pension provisions. [16831]
This is not strictly a matter for the Church Commissioners. I understand, however, from the advisory board of ministry that the number of candidates recommended for training for the ministry increased significantly in 1996 and this year. Confidence in the Church's arrangements for funding the ministry may have played a part in this encouraging development.
Does my right hon. Friend accept that it is time that the Church Commissioners took far more interest in ensuring that those who serve in the Church receive proper pensions and other rights? I consider that they are entitled to the same pension rights as Members of Parliament. I hope that the Church Commissioners will take some interest in the future of those who serve in the Church.
I shall ensure that my hon. Friend's remarks are passed on to the commissioners who deal directly and professionally with the issue. It is reasonable to point out that the number of people recommended for training was 420 in 1995, 453 in 1996 and 486 so far in 1997. The Church Commissioners are concerned to maintain the funding of clergy pensions and that is why they have made new arrangements. From 1 January next year, dioceses will meet the cost from funds provided by parishes of all clergy pension rights for future service, but not for past service. That is being done not least so that the commissioners can ensure the future funding of stipends in needy areas.
In his Budget, the Chancellor 0069mposed a £5 billion tax on pensions. How much will it cost parishioners to fund that tax?
I think that the hon. Gentleman is talking about changes to advance corporation tax. The cost to the Church Commissioners will be £12 million per annum in 1997 values. The commissioners tell me that they welcome the time allowed by the Government to plan for the removal of ACT relief and the phasing of its impact between 1999 and 2004.
Public Accounts Commission
The Chairman of the Public Accounts Commission
was asked—
National Audit Office
35.
How many lawyers are employed by the National Audit Office. [16832]
The National Audit Office does not employ staff as lawyers, although 10 graduates in law are employed by its auditors. The National Audit Office obtains legal advice as required from various sources including commercial firms and the Treasury Solicitor.
Is any of those people sufficiently qualified in public procurement contracts for tender under European Union regulations? Was any of them consulted before the contract was awarded for the refurbishment of Canary Wharf prior to the recent Anglo-French summit?
There is a big difference between the way in which auditors are employed by the National Audit Office and the way in which they are employed on the continent. In other countries, auditors have legal representation because they regard that as rather more important than the auditing function. The hon. Lady should understand that the Public Accounts Committee looks at value for money extremely well. I am sure that its Chairman, the right hon. Member for Haltemprice and Howden (Mr. Davis), will want to satisfy himself that that continues to be the case.
Defence
The Secretary of State was asked—
Persian Gulf
15.
What is the level of Her Majesty's forces currently deployed in the Persian gulf. [16810]
UK forces currently deployed in the Gulf consist of HMS Coventry, supported by Royal Fleet Auxiliary Bayleaf, as part of the Armilla patrol. Shore-based forces in the Gulf area comprise six RAF Tornado aircraft operating from Saudi Arabia, supported by two RAF VC10 tankers in Bahrain, which contribute to the enforcement of the no-fly zone over southern Iraq. A UK battalion is currently exercising in Kuwait as part of a routine training programme.
I thank the Minister for that answer. Will he confirm that, as long as there is a perceived threat in the region, this country will continue to maintain similar forces? Does he agree that the current regime in Iraq is all too willing to perceive as a sign of weakness any reduction in our forces or those of our allies in the area? That is another good reason for maintaining the current level of availability of British forces in the region.
Yes, we have made absolutely plain our concern about the potential existence and use of weapons of mass destruction in Iraq under the control of Saddam Hussein. That is why we have made it clear throughout this period that although we have of course sought, and will continue to seek, a diplomatic solution, we will not rule out the use of force. As the hon. Gentleman will know, HMS Invincible remains in the Mediterranean, ready to respond at short notice, giving the UK flexibility in the near future should Saddam's promise of co-operation with UNSCOM prove illusory.
The hon. Gentleman may also be aware that in the past few days my right hon. Friend the Secretary of State for Defence visited HMS Invincible to speak to the men and women who are serving on that aircraft carrier and who will be discharging the responsibility of this country in the efforts of the international community to ensure that the will of the United Nations cannot be thwarted and that the danger and menace of weapons of mass destruction is not held over the head of the global community.Points Of Order
3.30 pm
On a point of order, Madam Speaker. Following the actions of Welsh fanners in Holyhead last night, has the Secretary of State for Wales asked to make a statement to the House today? I make it plain that I cannot condone the actions of those farmers—we could never condone such illegal actions—but the Secretary of State should answer some pertinent questions about the problems that those farmers face.
For example, recent figures show that there has been at least a 30 per cent. drop in the incomes of Welsh farmers, a strengthening of the green pound because of the Government's economic actions, and a £16 million clawback of the hill livestock compensatory allowance payments to farmers in less-favoured areas—all this at a time when money is generally being made available because of the ewe premium rebate, which should be coming back to support Welsh farmers.Order. The hon. Gentleman is now getting into a policy argument. I let him continue because I wanted to check when Welsh questions were—they happen to be on Wednesday.
rose—
Order. I have not yet finished. The question was whether the Secretary of State for Wales had asked to make a statement. The answer is no, I have not been informed that he is seeking to do so. The hon. Gentleman raised a lengthy point of order—I hope that those on the Government Front Bench have taken note of it and that the House has noted that Welsh questions are on Wednesday.
On a point of order, Madam Speaker. My question relates to the tabling of oral questions. I understand from the media that the Lord Chancellor has let it be known that he sees himself as having a new co-ordinating role across Government Departments as, in his words, "a new Cardinal Wolsey". If we wish to question him on that matter in the Chamber, should we do so through his Parliamentary Secretary or through the Department concerned? He appears to have started with the Ministry of Defence.
As the hon. Gentleman knows, I am not responsible for the rota of when Ministers answer questions. That is determined through the usual channels. It is for the individual Member to determine which Minister is responsible for answering the question that is tabled. If there are any problems, I know that the Clerks in the Table Office will provide guidelines and as much help as possible.
On a point of order, Madam Speaker. I do not want in any way to quibble with your response to the hon. Member for Ribble Valley (Mr. Evans), but I would want to raise under Standing Order No. 24 the issue that has been concerning us overnight. It is a matter not just for Welsh Ministers but for the whole of the rural community, the whole of the United Kingdom and all of us who represent agricultural constituencies. I would suggest that when patient people such as British farmers resort to civil disorder on the scale that they have, it is a very serious matter and, although we would not wish to condone their action, we should have an opportunity to debate it in the House.
I remind the hon. Gentleman, and all those who might want to touch on this subject, that there was ample time before 12 o'clock today to make an application under Standing Order No. 24. I have made my views known on the matter. I want no further points of order on the issue; I have dealt with it as far as it is my responsibility to do so.
On a point of order, Madam Speaker. I fear that there may have been a misunderstanding in the reply of the right hon. Member for Ashton-under-Lyne (Mr. Sheldon) to my question during Question Time.
I have put the same question to the Prime Minister. He has been asked about the costs of refurbishing Canary Wharf for the Anglo-French summit. To my knowledge, he has not replied. The point that I was trying to make in Question 35 was that we are obliged, under European law—Order. The hon. Lady is trying to extend Question Time. She asked how many lawyers are employed by the National Audit Office. I cannot extend Question Time.
On a point of order, Madam Speaker. Has the Chancellor of the Exchequer given you any indication that he wants to make a statement on the tax-avoidance schemes of the Paymaster General, especially since the Chancellor appears to have changed Government policy on the issue without informing the House? At last year's Labour party conference, the Chancellor said:
He should tell the House whether that still applies to all millionaires or only to millionaire Treasury Ministers."A Labour Chancellor will not permit tax relief to millionaires in offshore tax havens."
Further to that point of order, Madam Speaker.
Yes, I will hear a further point of order. I want to deal with this matter.
Do you agree, Madam Speaker, that, if a matter is of sufficient importance that it requires a Minister to rush out a statement clarifying why there has been a change of Government policy, that statement should be read out in the House by the Minister? Therefore, should not either the Paymaster General or the Chancellor of the Exchequer come to the House to clarify Government policy?
rose—
No, I can deal with this, thank you very much, Mr. Skinner.
Further to that point of order, Madam Speaker.
All right. It is fair enough to hear one from the Government Benches.
I remember that, in years gone by, when the Tories were in power, I used to try might and main to find out just what had happened to the £65 million concerning the then Deputy Prime Minister, the right hon. Member for Henley (Mr. Heseltine)—where he had got it, where he had put it, who was in charge of it. I got the brush-off from the Speaker at the time.
What is more, I saw in the papers at the weekend that the shadow Chancellor of the Exchequer, the right hon. Member for Hitchin and Harpenden (Mr. Lilley), was to ask a question about the matter. Well, he is not present. I can only assume that he is still in his French investment over the channel.I assure the hon. Member for Bolsover (Mr. Skinner) that he is not likely to get the brush-off from me.
On the very serious point, any hon. Member on either side of the House who believes that a Minister has acted outside Government guidelines should make representations to the Prime Minister, who is responsible for ministerial guidelines covering all Ministers. I hope that, if there is any thought of that in relation to this issue, hon. Members who are concerned will make proper representations, with evidence, to the Prime Minister.Welsh Affairs
Motion made, and Question put forthwith pursuant to Standing Order No. 107 (Welsh Grand Committee),
That the matter of government expenditure in Wales in 1998–99, being a matter relating exclusively to Wales, be referred to the Welsh Grand Committee for its consideration—[Mr. Clelland.]
Question agreed to.
Opposition Day
[5TH ALLOTTED DAY]
Welfare, Pensions And Disabled People
I should inform the House that I have selected the amendment in the name of the Prime Minister.
3.38 pm
I beg to move,
The debate is timely not only because of the internal Labour rows over cuts to lone parent benefit but because, after seven months in office, it affords us an opportunity—That this House deeply regrets the unnecessary delay to proposals on pension and welfare reform; finds it inconceivable that having attacked reductions to lone parent benefits proposed by the previous Government this Government now plans to implement the same reductions; and urges the Government to take this opportunity to reassure people with disabilities that they will not tax Disability Living Allowance or transfer disability benefits from disabled individuals to bureaucracies such as local government's social services departments.
What rows?
The real rows come from among the hon. Gentleman's friends and all those sitting on the Back Benches behind him.
With briefing, counter-briefing and leaks, the Department for Social Security is developing a sense of confusion which bodes ill. The Secretary of State and her party came to power on a promise—among many promises—of large-scale pension and welfare reform. The Prime Minister established that as one of his main priorities. He said that his Ministers would "think the unthinkable" andIn office, the Prime Minister reaffirmed that commitment as recently as October. He said:"end welfare as we know it."
He was equally explicit about welfare. He said:"We need to invest more as a country in savings and pensions. But Government's role is going to be to organise provision—like new stakeholder pensions—not fund it all through ever higher taxes."
I shall deal with pensions first. After the Labour party's scurrilous attack during the general election campaign on basic pension plus—which was essentially a proposal for discussion, not dissimilar to a Green Paper—it was legitimate to expect that the new Government were ready to move fast on pensions. One would think that they had an alternative, but apparently they did not. Expectations were underlined by the appointment in May of the Minister of State, the right hon. Member for Birkenhead (Mr. Field), who is in his place. He was the Prime Minister's personal appointment and carries the unprecedented title of Minister for Welfare Reform. Given the amount that he has written on the subject in the recent past, the country would have been forgiven for expecting an early Green Paper on pensions. After all, the very phrase "stakeholder pension" is one which he coined in his pamphlet "How to pay for stakeholder welfare"."it means fundamental reform of our welfare state, of the deal between citizen and society"
I am grateful to the hon. Gentleman. He was the author of a notorious pamphlet in 1993, which struck a chill into the heart of every pensioner in the country, for the No Turning Back group, that ultra-rightwing, reactionary Thatcherite group. [HON. MEMBERS: "He is reading."] I am reading because I am quoting. In that pamphlet, the hon. Gentleman proposed that people be allowed to opt out of their basic state pension. Is that still his policy—yes or no?
I am grateful to the hon. Gentleman for raising that point and I am pleased that he has bothered to read my pamphlet. I have been waiting some time for him to get round to it. The Secretary of State for Social Security might do well to read it herself. The answer to the hon. Gentleman's question is that pension reform requires one to consider all aspects—
Answer the question.
The hon. Gentleman should listen to the answer. I do not resile for one moment from the idea that, as the Prime Minister said, pension reform requires one to think the unthinkable. Ministers are doing very little thinking, unthinkable or otherwise. What I wrote in 1993 went further towards pension reform than anything that Ministers have produced.
The pamphlet by the Minister for Welfare Reform is very interesting, and the hon. Member for Rotherham (Mr. MacShane) should read it. He might be interested to find out what the Minister's opinions are. The pamphlet was the product of a number of years' thought on how to provide second pensions for all, and such thought was also evident in other pamphlets such as "Private pensions for all: squaring the circle" and "A national savings plan", which was about universalising private pension provision. Those pamphlets emerged before the election, but, instead of the expected early Green Paper, which the hon. Member for Rotherham is so keen on, a pensions review was announced in July. Instead of being actively led by the Minister for Welfare Reform, it was run by the Under-Secretary of State for Social Security, the hon. Member for Southampton, Itchen (Mr. Denham). It took him until September to announce the members of the review panel and on 31 October the review was closed, only to be reopened until May 1998. We still have no sense of what basic policy the Government will pursue. Even the review is confused. After 1,800 responses, the Under-Secretary announced on 3 November in a written answer:On 19 November, the Under-Secretary opened another, separate review, before he had read and digested all the responses from what he called the stakeholder consultation. What was the purpose of the first review? I was not aware that it left out stakeholder provision; indeed, various people commented on that subject in their submissions. The Government seem to be making policy by procrastination. It is worth reminding ourselves what the Minister for Welfare Reform said just before the election. Speaking about his party leader—now the Prime Minister—on 18 October 1996, the right hon. Gentleman said:"The Government intends to publish its initial framework for change in the first part of 1998. There will then be a further period of consultation before firm proposals are developed."—[Official Report, 3 November 1997; Vol. 300, c. 90.]
He went further, saying that it was"His aim is for Labour to enter Government with a sufficiently well created plan that it can be part of the first Queen's speech and a draft Bill in the first year, allowing for a year for debate."
I heard the right hon. Gentleman say earlier from a sedentary position, "It will be." We are already reaching the end of the year and no Green Paper is even evident. As he knows, the review process is stretching out to the latter part of next year. He says that there will be something, but we see nothing coming up."crucial to avoid the mistakes of Dick Crossman and Harold Wilson who spent four years consulting and lost their plan in the 1970 election".
The hon. Gentleman talks about the pensions review, but does he not agree that, in cutting value added tax on fuel, eliminating the gas levy and announcing increases for winter fuel of £20 to all pensioner households and £50 for those on income support, we have done more for pensioners in the past six months than the Conservatives did in 18 years?
The hon. Gentleman is doing very well, is he not? He rose to take a position on pensions, but he talked about a giveaway in the green Budget, which was more about protecting the position of those on the Government Front Bench than anything else. It was cobbled together quickly to get them out of a hole because they are getting nowhere over all their so-called reform processes.
The hon. Gentleman should try answering the question: when will they go for the Prime Minister's position of full pension and welfare reform? There has not been a word so far about where all that is. Perhaps the hon. Gentleman would like to answer that question. When will that be? There is no answer, is there? So it goes on. I can understand the frustration of the Minister for Welfare Reform as he perceives the process being delayed; after all, he has written about it. As I said, he wrote all that on pensions alone. The delay goes back to the emergency Budget that the Chancellor produced for, it now appears, no reason at all. He went further than he said and not merely on the windfall tax. He set about pensions. Let us put on one side for a moment the Chancellor's attack on pensions, which will cost those who need to invest in their pensions billions of pounds and lose them a lot of money. With the abolition of advance corporation tax dividend tax credit, the right hon. Gentleman devalued the national insurance rebate. Having made those changes, far from leaving the state earnings-related pension scheme as an option for those who wished to remain in it, as the Labour manifesto said—a rather vague commitment—he has gone a stage further and has enhanced the option of SERPS, increasing the number of people opting in. That is happening now and research by Scottish Life clearly shows that,So people are opting back in. On the margins, there is no purpose in staying out as the rebate has been so devalued. The Minister for Welfare Reform is also fairly unequivocal about SERPS, as the Secretary of State knows. The Minister said:"Based on somebody earning £15,000 a year, remaining out of SERPS could cost them the equivalent of £360 a year in retirement income. And for higher earners it could be far more."
I agree, as I am sure does the Secretary of State. I am also intrigued by how the Minister views his colleagues, given that he said at some point:"A failure to close SERPS will mean substantial tax bills for future generations."
On 29 October, given all the confusion, the Prime Minister had clearly lost track of who was running what. My right hon. Friend the Member for South-West Surrey (Mrs. Bottomley) asked straightforwardly at Prime Minister's Question Time whether the Minister for Welfare Reform had his support for thinking the unthinkable and proposing pension improvements. The Prime Minister expressed himself in complete confidence with the Minister for Welfare Reform's duties—an interesting choice of words—but went on to say that the Minister would be producing a Green Paper shortly. We are talking about pensions, let us remember. Are we to assume that the Minister will also be carrying out a separate review of pensions? Perhaps he could let me know."Anyone persuaded SERPS had a future ought to be made a ward of court".
indicated assent.
I see that the right hon. Gentleman is nodding, so we have established that. In that case, what was the purpose of the review by the Under-Secretary of State, and if the Prime Minister thought in October that the Green Paper would be issued shortly, why do we have to wait until the new year to receive it? Nothing has happened. Three months after that promise, we will still be waiting.
The Secretary of State, who may or may not be listening, has said remarkably little about pensions in the past few months, either in the House or outside. Pensions reform is being pushed into the blue yonder. It is too difficult to rectify, and there are too many hard choices to make, so the Government prefer to slide it out into the future and leave only the minimum change that can be made. So it goes on.How many people suffered the abuse of pensions mis-selling under the previous Government? The hon. Gentleman is outlining duties; what duty and responsibility did the Tory Government have to prevent that?
The hon. Lady asks a serious question. The issue of pensions mis-selling is being dealt with, and was being dealt with before the general election. I understand from the Treasury figures that the sum under investigation is £2 billion maximum, and perhaps less.
That is a serious matter, but why do Labour Members never mention the fact that, as a result of all the changes that the Conservative party made before the general election, about £750 billion—more than in the whole of the rest of Europe put together—is now invested in private pensions here? They never mention that success. How do they intend to persuade members of the public to invest in pensions if they never talk about the success of private pensions, which were driven forward by the Conservative party over the years against perpetual opposition from Labour? The process with welfare reform appears to be similar. We have a series of proposals that need to be implemented quickly, so that the changes can be bedded down and we can have proper discussion to make sure that there are no problems. All through the summer, no one would answer the important questions: when and whether there would be a Green Paper on welfare reform, and who would produce it. Throughout the summer, a series of leaks and counter-briefings in the press took the debate beyond the House, but still we have no answers. The Financial Times reported that someone in the Treasury, who is apparently close to the Minister for Welfare Reform, said:The summer was dominated by a war of words, with briefing and counter-briefing between the Secretary of State and the Minister for Welfare Reform. There was no progress until finally, at the end of the summer, she was forced to agree to his producing a Green Paper; but not, apparently, until early in the new year. Is the Chancellor's welfare review—it is run by Martin Taylor and has nothing to do with the Department of Social Security—which is supposed to be considering merging tax and benefits, taking priority? Does the Chancellor not like what the Minister for Welfare Reform has written progressively over the years? In his green Budget, the Chancellor continued to refer to the Minister's proposals, even though it appears that they are being rapidly watered down and now focus solely on making family credit payable through pay-as-you-earn rather than through the benefits system. The clash between the Minister for Welfare Reform's views on the ending of means testing and the Chancellor's view that means testing is necessary through the tax system may explain some of the problems. There is also the thorny point of what the Secretary of State thinks of the Chancellor's proposals. After all, she has long said that she does not like the idea of benefits being paid through the wallet rather than through the purse. There was a big debate, and she always argued that benefits should be paid to the person at home. Then again, if the Chancellor requires the change she will no doubt change her mind and implement it. That seems to be the process, and it is what we have come to expect."His package now seems insufficiently new Labour.
I remind the hon. Gentleman of his celebrated comments in a pamphlet in 1993, when he suggested that disability living allowance should be means-tested. Does he write in one tone and talk in another?
If the hon. Lady were to check the intervention list from her Whips Office, she might understand that she has got most of that wrong. I will discuss the disability living allowance later, but the simple fact is that no welfare reform package or review is on offer. The hon. Lady cannot substitute that fact with an attempt by her Whips Office to find out exactly what someone else, who is not even in government, proposed. The Labour party are in government; the hon. Lady is in government; when are we going to get some proposals from them? We have heard no answers from them. The hon. Lady should check her Whips Office little list again, because it has got it quite wrong.
I posed a series of questions of the Secretary of State when she first announced in the Budget debate how she intended to operate some of her proposals, such as the new deal for lone parents. The right hon. Lady stuck with single-minded determination to that new deal; that is what she has spoken most about and has issued most press releases about. It seems to be the main drive behind most of what she has said and done. Assuming that the pilot programmes were meant to inform us whether the policy on the new deal for lone parents is working, I said from the beginning that the right hon. Lady would need to institute proper control groups inside the pilot programmes to measure the effectiveness of each pilot. Most of those comments were obviously ignored. As I and my team went around the pilot centres during the summer, it became absolutely clear that, with the absence of control groups, it would be impossible to measure why people got jobs and whether that was because of the new deal. We are now told that some time in September the Department of Social Security partially changed its mind about control groups. It did so retrospectively—that was never mentioned in the original plan, and the right hon. Lady never answered that question. The Department now needs to tell us how those control groups will work. I gather that it is even trying to backdate the information from those so-called pilot areas. When the control groups were set up, there was a flurry of press releases—long before any real success or failure could possibly be measured. Of particular interest was the Secretary of State's press release of 23 September, just two months after the programme began, which spoke glowingly about how successful it was. The other important press release was that issued on 23 October, when the Secretary of State readvertised her programme as a huge success, after just three months. The time came to analyse those figures, and we found that when the Secretary of State announced that they were a huge success she was talking about a 20 per cent. success rate. She failed to tell us that 433 people taking jobs out of the 8,600 to whom letters were sent is equivalent to a 5 per cent. response rate. She has never yet once explained how she can make a success out of 5 per cent., when so many people have not even bothered to respond to those letters. What has happened to all those people who did not respond? Have the Government studied the reasons for that lack of response? Not one comment have we heard from the Government. Now we discover from figures apparently released by the right hon. Lady's Department that the chances of people getting work from the programme are roughly the same as they would be were they not in that programme.The hon. Gentleman has been speaking for 20 minutes and, apart from attacking the fact that the Government are reviewing the welfare system, he has said absolutely nothing about the Opposition's views on welfare reform. At the very least, will he say whether he supports the Government's proposal on the new deal for lone parents?
Frankly, if the hon. Lady tries to persuade her right hon. Friend the Prime Minister to make us all offers to move over to the Government Benches, we will listen. The truth is that, believe it or not, the hon. Lady is in government. Those on her Front Bench are there to make decisions. When will they do so? The Government do not like the fact that I am simply saying that when they promise major reforms, and then do absolutely nothing, they are misleading the public. The longer we go on about that, the less they like it. We have been offered no reform.
Could it not be that, while the Minister for Welfare Reform said:
the Secretary of State cannot make up her mind? In October, she said on television:"Women with children of school age should be under an obligation to look for work",
While they are busily arguing among themselves, they cannot come up with a consistent policy."Compulsion is absolutely not the issue."
That is the point that I am coming to. The reality is that there is one dispute after another. The Secretary of State is arguing with the Minister for Welfare Reform about who should be in charge. He wants compulsion; she does not. I agree with my hon. Friend the Member for Billericay (Mrs. Gorman) that it is one endless internal dispute after another, which is why we are not getting anywhere with the reforms. There have been no reforms at all.
The new deal for lone parents is becoming more and more of a trumpeting exercise in publicity rather than a serious study about how people can get into work and how they can be assisted in doing so if they wish. The Conservative Government proposed some changes to cut child benefit and the supplement to income support in their final Budget last November. The present Secretary of State attacked the proposals and immediately said that she did not intend to implement them once in government. She went further in an interview with Polly Toynbee of The Independent. When asked whether she would introduce the changes to lone parent benefit, she said, "No, of course not." On 28 November 1996, she said:"The Secretary of State says that he is cutting benefits to lone mothers because they are at an advantage compared to married mothers…but it is not fair on the families of women who bring up children on their own. They will be worse off."—[Official Report, 28 November 1996; Vol. 286, c. 501.]
Will the hon. Gentleman confirm that on the two occasions in this Session when there have been votes on the abolition of benefits for lone parents, the Conservative party has abstained, thus proving that it has no opinion?
The hon. Gentleman asked what our position is. Had we won the last election and been in government now, we would, without question, have implemented the changes. I have told the Government that.
I can tell the Liberal Democrats that the simple position is that we certainly shall not oppose any such changes if the Government introduce them. That is straightforward and our position is clear. We have not broken a pledge, unlike the Labour party—the party of the hon. Member for Rotherham. [Interruption.] The hon. Gentleman should calm down—he is obviously being vibrated too much by his Whips Office. He and his hon. Friends have broken a pledge—the Secretary of State has broken it more than anyone else. In the interests of clarity—[Interruption.] It is no good trying to protect the Secretary of State; I just want to hear from her about it. In 1996 and 1997, she made it absolutely clear that she would not implement the change. Will she tell us exactly what changed her opinion? If she disagrees with the policy in principle—as it seems from those quotes and from all the speeches that she has made and discussions that she has had—will she now give an undertaking that if, at any time, the Exchequer moves into the black and starts to repay debt, she will reverse the cuts? She might do so if she does not agree with the policy in principle and it is only about saving money. At some point in the future, will she change her opinion, or will she stand by the reductions in lone parent benefit that we proposed before the election and she attacked? Would she like to answer that question? No, she does not want to answer. The Secretary of State's view that the Labour party in government would not implement the cuts was supported by the Prime Minister—her Back-Bench colleagues should remember that. When he was asked on "World at One" whether he would implement the cuts, he said:He knew what he was saying; he was referring to what the Secretary of State had said to Polly Toynbee in an article in The Independent. He was clear and unequivocal. He knew exactly what the Labour party was planning to do in government: stick to existing spending totals. It is no good Labour Members saying that, before the election, the Conservatives instigated a devious plot to change the spending totals; they knew what they were, and the present Secretary of State and the Prime Minister knew that."No. We believe that we can avoid that situation within the existing budget".
Will the hon. Gentleman give way?
I shall give way later.
Our position has been clear. Had we been in power after the election we would have stuck to our pledge and implemented the policy, because we believed that it was the right thing to do. The most important result of the right hon. Lady's problems with her Back Benchers and her Department was that, at the last moment, the Chancellor decided to cobble together a rescue package in the green Budget and buy off the animosity against those changes with the announcement about after-school clubs. What gave the game away was that, in answer to a written question about the policy on after-school clubs, the Under-Secretary of State for Education and Employment, the hon. Member for Newport, East (Mr. Howarth), had written:That is true, is it not? He wrote that at the same time as the Chancellor was rising to his feet to announce that there were to be after-school clubs."We are currently developing a National Childcare Strategy which will help parents…I will make an announcement in the first part of next year."—[Official Report, 24 November 1997; Vol. 301, c. 361.]
indicated dissent.
The Minister was absolutely clear that they were going to give the details of the package next year. They changed their plans simply because the right hon. Lady was in trouble, along with her right hon. and hon. Friends.
rose—
There is no point in rising to protect them—the hon. Gentleman should stop trying to be an air raid shelter taking some of the flak for the Secretary of State. The reality is that the Chancellor suddenly managed to find £200 million from the lottery, £50 million from the Department for Education and Employment and £30 million from the windfall tax to pay for after-school clubs.
The announcement that 50,000 people were to be trained to be child carers was given as though it was something new, but it had already been mentioned in the Budget. During the Budget debate, I told the Secretary of State that it would be difficult to find 50,000 child carers from the welfare-to-work programme, given that numbers were falling fast because so many jobs were being found. In an attempt to find those extra 50,000 people, the Government have again decided to backtrack by opening up training to all young unemployed, whether or not they have been unemployed for more than six months. There is a problem with that—[H0N. MEMBERS: "Yes, there is."] I am glad Labour Members admit that there is a problem. The interesting thing is that Labour Back Benchers do not seem to understand that the age limit has been set below 26 because of the minimum wage. It appears now that the Government will exempt all those under 26 from the minimum wage, so that they will not have to pay the extra sums that they know they cannot afford. The Secretary of State and her right hon. and hon. Friends have worked it out very carefully. Will the right hon. Lady let us know whether they will train people over 26 if they cannot find enough people to train as child carers, regardless of whether the exemption on the minimum wage stands for those under 26? Will she tell us that, either in her speech or in an intervention now? All right, fine. We will not get an answer on that.Get on with it.
It is no good the hon. Gentleman shouting—getting on with it is the simple process of discovering from the Secretary of State exactly what her plans are. Not surprisingly, we will now move on to disabilities.
I am grateful to the hon. Gentleman for giving way before leaving the subject. Is the problem not merely the number of people the Government have to find to take on child care, but the serious nature of the business of child care, which is not a matter for any frivolity? Carers must be of high quality and properly trained, and that will take a long time.
I agree with the hon. Gentleman. Interestingly, we will have people trained for child care through the welfare-to-work programme who might have to be compelled into that process, but they might be looking after the children of those whom the right hon. Lady refuses to compel to go into work. That is a dichotomy: on the one hand, we will have people not compelled to take up jobs and, on the other hand, people being compelled to train to look after the first group's children. Child care is a serious subject and the Government are treating it with a great deal of frivolity.
I have some serious questions to ask the right hon. Lady about disability benefits; I want to give her the opportunity to clarify one or two problems. First, there are some people with disabilities who have been awarded disability living allowance for life. Will the Secretary of State guarantee that life means life, and that she intends no change? Secondly, we hear that the Government are considering taxing disability living allowance. The Labour manifesto stated that there would be no new taxes; given the raid on pensions, who would now believe that? Where do these pledges leave people on disability living allowance? Do the Government plan to single them out, or does the right hon. Lady deny that such a proposal exists? On 17 November, the right hon. Lady answered a question at the Dispatch Box, saying that she and her colleagues had spoken to more than 40 organisations representing people with disabilities; yet on the "Link" programme on ITV yesterday, disability groups were adamant that they had not been approached, and they accused the Secretary of State of misleading the House of Commons. The programme had contacted 28 leading organisations, including the Royal National Institute for the Blind, all of which said that they had not been consulted or approached by the Secretary of State or the Department. Will the right hon. Lady take this chance to clear that up? Did she intentionally or otherwise mislead us during oral answers to questions or does she stand by her claim that she contacted these organisations? Benefits Agency staff have been making home visits to 150,000 people who receive disability living allowance at the higher rate in both care and mobility components. What training have those people had? These are all serious questions to which we demand serious answers, either from the right hon. Lady or at the end of the debate.rose—
I am concluding.
The debate would not have been necessary if the right hon. Lady and her team had set about their brief in line with what the Prime Minister has said. In a rhetorical flourish, he told them to think the unthinkable; they would change welfare and engage in sweeping pension reform. The right hon. Lady and her team have not done that. They promised before the election not to cut lone parent benefit and the supplement on income support, yet they are doing just that. In everything that is going on we perceive delay, vacillation and policy U-turns. The cross-briefings and disputes between the people running the Department do not bode well for the biggest Department in government or for the Secretary of State's stewardship of it. Labour party members charged around when they were in opposition—many of them still think they are in opposition—promising Back Benchers and pressure groups to deliver on their most favoured programmes; a nod here and a wink there. It was not so much a case of a wet Wednesday in Dudley as of a United Kingdom programme of empty promises seven days a week. The Treasury seems determined to make spending cuts, while departmental Ministers are more worried about their jobs than anything else. They are so busy trying to extricate the knives from each other's backs that they have no time to think about where the next cut will fall. No wonder Labour Back Benchers have smelt a rat. Someone needs to take control of the Department before it descends into chaos. I urge the right hon. Lady to get a grip and to get these reviews moving, as she promised to do. She must also explain why she has reneged on her promise before the election not to cut benefits. She must get the Department focused. The Secretary of State says that no Green Paper is ready yet. The Minister for Welfare Reform has already published quite enough to form the basis of a Green Paper, but the right hon. Lady simply has not bothered. Instead, her Department is led by press release, cross-briefing and dispute. It is time she started to change—fast.4.13 pm
I beg to move, To leave out from "House" to the end of the Question, and to add instead thereof:
This debate has shown that the Tory Opposition have nothing to say about welfare reform, nothing to say about tackling worklessness and poverty, and nothing to say about social exclusion or the problems of pensioners. However, the debate does allow Labour Members the opportunity to expose the full extent of the previous Government's legacy of failure, to set out the Government's approach to tackling that failure and to talk about the progress that we have already made. Reforming the welfare state to tackle poverty and welfare dependency is a priority of the Government. We are delivering on that commitment. There is a new deal for the young and long-term unemployed, and the biggest employment programme for 40 years. A new deal for lone parents is already up and running and transforming the lives of lone parents and their children. There is the first national child care strategy for Britain, with the biggest ever investment in out-of-school child care. There is a new programme to give extra help and opportunities to people who were written off by the previous Government as long-term sick and disabled. We are getting help to all Britain's pensioners, with extra help to the poorest. That is what we said before the election that we would do, and that is what we are doing, now that we are in government. Before I continue, I want to place the debate in context. The social security system that we inherited failed to tackle poverty. It trapped people on benefit and did nothing to help them into work. Under the previous Government, spending on social security rose to £100 billion a year—£25 billion more than the total amount of income tax collected in any one year. Despite that huge growth in welfare spending, during 18 years of Tory rule, more and more people were excluded from the main stream of society. The system was not working because it had failed to respond to social and economic change. The Tories got it wrong. Growing social exclusion—for the benefit of the hon. Member for Chingford and Woodford Green (Mr. Duncan Smith), who does not seem to know what it means—means adults deprived of work, children deprived of a decent education, whole communities cut off from their more prosperous neighbours, and a growing gap between rich and poor."congratulates the Government for the progress that has already been made on reforming the welfare state to tackle social exclusion and welfare dependency; backs the Government's strategy of offering hope, opportunity and a better standard of living for people through its welfare to work programmes for lone parents, disabled people and those with long-standing illness, young unemployed people and the long-term unemployed, and the National Childcare Strategy, in contrast to the previous Government's approach of writing millions of people off to a life dependent on benefit; welcomes the Government's determination to ensure security in retirement for today's and tomorrow's pensioners through the pensions review and the action the Government has already taken to get help to Britain's pensioners, particularly the poorest pensioners, by cutting VAT on fuel and through the £20 winter fuel payment to pensioner households and the £50 winter fuel payment to pensioner households on Income Support; and congratulates the Government for keeping its promises and delivering its manifesto commitments to the British people.".
The Secretary of State said that the Tories got it wrong. If that is correct, why has she now decided to implement one of the policies which, according to her, the Tories got wrong—the cuts in lone-parent benefit, which the right hon. Lady constantly condemned at the time and said that she would not implement? Will she once and for all tell the House what has gone through her mind to make her change her policy, announced last winter, that she would not implement those cuts?
The Tories got it wrong on lone mothers, because their proposals left 1 million lone mothers bringing up 2 million children on income support, and offered no help or opportunities for them to work, despite a growing economy.
I am grateful to the right hon. Lady for giving way again. Now will she answer the question? Why is she now implementing the cuts that we proposed, which she condemned as wrong?
I have answered the question. We said time and again that our approach to lone mothers would be to help them to work, so that they could be better off than they would ever be on benefit.
In a growing economy, increasing numbers of people were left behind. There are now 3.5 million households of working age in which no one works. A quarter of all children are growing up in families in which no one works, and the poorest pensioners are being left behind. Although one in eight pensioners are among the richest 20 per cent. of people in the country, a quarter are entitled to income support.Answer the question now.
I have answered the hon. Gentleman's question. We said that we would have a welfare-to-work approach to tackle the poverty of lone parents and their social exclusion and that of their children. The previous Government proposed no opportunities programmes for lone mothers.
rose—
I will not give way to the hon. Member for West Chelmsford (Mr. Burns); I have given way to him twice to answer the same question. I give way to his hon. Friend the Member for Maidenhead (Mrs. May).
Did the right hon. Lady have the opportunity this morning, as I did, to listen to the radio phone-in programme on welfare benefits? A single mother rang to say that, although the Government claim to be doing so much to get lone parents into work, if she were to take temporary work over the Christmas period to earn money to provide for her children, she would go back on to lone-parent benefit at the reduced rate. How would the right hon. Lady answer that lone parent?
We do not believe that the changes will be a disincentive to work for lone parents; if we did, we would not be introducing them. Our approach to lone parents is to help them to become better off, by working, than they could ever be on benefits.
If what the right hon. Lady is saying is correct, why have more than 100 Labour Back Benchers signed an early-day motion and written letters privately condemning her policies?
The hon. Lady speaking out on behalf of Labour Back Benchers is a touching spectacle, but they are probably more than capable of speaking out for themselves.
The British people have had enough of division. The general election showed that they were no longer prepared to put up with such a deeply divided society. They gave us a clear mandate to tackle social exclusion and to build a better one-nation society.Is my right hon. Friend aware that, according to the latest published figures, in parts of my constituency the average gross household income, including all non-housing benefits, is—and I ask hon. Members to listen carefully—less than £3,000 a year? That is less than 60 quid a week to support a household. Those people have been excluded and they are looking forward to my right hon. Friend and the new Labour Government giving them hope.
That is why the people in my hon. Friend's constituency will welcome our proposals for a minimum wage and a working families tax credit to make work pay.
The British people gave us a mandate not just to tackle social exclusion, but on how to tackle it—not simply by adding to the benefits bill, which had been tried and had not worked, but by investing wisely in extending economic opportunity to all. We have two equal but quite distinct duties in government—a duty to invest in helping those who can work to do so, and a duty to focus help properly on those who cannot work. The key failure of social policy in recent years has been the failure to differentiate between those two groups. That has resulted in hundreds of thousands of people of working age being written off to a life of dependence on benefit, when the Government should have been helping them to work. Work is central to this Government's attack on social exclusion.The right hon. Lady said that she was hoping to focus benefits on those who were not able to get work. In what sense is the cut in lone-parent benefit focusing benefits on lone parents who cannot get work?
No lone parent currently in receipt of income support will have their benefit affected. However, there will be a welfare-to-work programme—and I know that the hon. Gentleman agrees with us on this—because the best way to tackle poverty among lone parents and their families is to ensure that they are much better off in work than they could ever be on benefit.
My right hon. Friend will be aware that the housing benefit system works in such a way as to lock people into unemployment. Why do we not take a far more imaginative approach and directly interfere in the free market for rents, thereby reducing housing benefit and saving hundreds of millions of pounds—far more than anything we could gain by the measures that she is considering?
My hon. Friend is absolutely right: the housing benefit system locks people into dependence on benefit and deters people from working. I and Ministers in the Department of the Environment, Transport and the Regions have said that, in reviewing the social security system, we shall examine the role of housing benefit to ensure that the housing support system accords with our priorities: that people have every incentive to work and do not remain—as they were under the Tories for 18 years—trapped on benefit when they want to work and be independent.
My right hon. Friend has missed my point. High rents mean high housing benefit and they exist in a free market for rents, which affects millions of people. Why do we not interfere there, thereby slashing the benefit bill in a major way, instead of concentrating our efforts on lone parents?
My hon. Friend raises some interesting points, which we shall make part of our housing benefit review. We shall go out of our way to discuss with him his constructive proposals, so that they can feed into our thorough and comprehensive review.
Work is central to the Government's attack on social exclusion. Work is the way in which people provide for themselves and their children. It is how people set an example to their children.Does my right hon. Friend agree that, when the Conservatives were in government, all they did was to chastise and castigate lone parents? This Government are presenting them with real opportunities. Will she join me in congratulating the Cambridge benefits agency on being close to getting its 100th lone parent back into work?
I congratulate not only the Cambridge benefits agency, but my hon. Friend, who had a role in pioneering the ideas behind this programme of bringing together all the advice and information about jobs, training and child care, to enable lone parents to move off benefit and into work, where they can be better off.
rose—
rose—
I give way to my hon. Friend the Member for Bolsover (Mr. Skinner).
Is my right hon. Friend aware that, in a perfect world, the idea of getting everyone a job is sound? However, it is an imperfect world and it will always remain so, whether the Conservative or Labour party is in power. Welfare to work is a wonderful-sounding notion, yet in large parts of Britain, including my constituency, many people would like to get into work but cannot, and that will apply to lone parents as well.
Another question has to be taken into account. Some lone parents want not to work, but to look after their children, and they should not be penalised because they take that honourable stance. The question is: where is all the work in this imperfect world, and why should people be penalised because they want to bring up their kids?My hon. Friend makes a point about people in his constituency without work. The economy may be growing, but some people in my constituency and in his constituency are simply left behind. In my constituency, some young people do not have the proper skills and educational qualifications to allow them to apply for the jobs that are available. Some lone mothers do not have child care or help to enable them to take the jobs that are available, and there are people who have been made redundant in their late 40s and who think that no employer will ever look at them again because they have been written off.
Our welfare-to-work programmes not only sound nice, but will transform the lives of people who were written off under the Conservative Government; for those people, the programmes will bring the dignity of work. Work is essential, helping people to provide for their children during their working years and to provide for themselves in retirement. Work by those who can helps to support those who cannot. Work is not just about earning a living. It is central to independence and self-respect. We all have constituency experience of families with a spring in their step who have hope and the prospect of a better future, and of others with no hope and no prospects who are downcast. That is the difference between a family with work and a family without work. Work makes the difference between a decent standard of living and never-ending benefit dependency; the difference between a cohesive society and a divided one. That is why we are reforming the welfare state around the work ethic. We have put into place the biggest welfare programme ever in this country, tearing down the barriers to work, enabling people to realise their potential and thereby increasing the prosperity of society. We are investing more than £3 billion in a new deal for the young and the long-term unemployed. Too many of our young people have never had a job. They feel that they have been thrown on the scrap heap before they have begun. That was acceptable to the previous Government, but it is not acceptable to us. From April, every young person unemployed for more than six months will be given real opportunities, with worthwhile jobs and quality training. Too many people who lose their job and cannot find another feel that they will never work again. That was acceptable to the previous Government, but it is not acceptable to us. From next June, employers will be encouraged with a payment of £75 a week to take on someone who has been unemployed for more than two years. Our welfare-to-work programme recognises that the problem of worklessness that grew under the previous Government goes far beyond the official unemployment statistics. Too many lone mothers have been written off to a life of dependence on income support. We now have 1 million lone mothers bringing up 2 million children on benefit as a result of the previous Government's policies.Will the right hon. Lady give way?
I have given way about 15 times. I intend to press on with my speech. The hon. Gentleman should try again later, when I have made some progress. He might need the time to think up a sensible question.
Lone mothers want to work for the same reasons as married women—for a better standard of living for their children. Lone mothers have even more reason to want to work—not just for the money, but to set an example to their children that life is about work, not just about being on benefit. Lone mothers who most need and want to work are less likely than married mothers to be working, because they are trapped on benefit. Our new' deal for lone parents is a radical programme that recognises and backs lone mothers' desire to work. It is already up and running in eight areas. It is based on the simple idea of giving lone parents whatever help they need to get into work. That help is offered when their youngest child starts school at five. What a contrast with the previous Government, who told lone parents to stay on benefit until their youngest child was 16. The previous Government then complained about the inevitable rise in the benefit bill and said that lone mothers posed a threat to society. Last week, we announced that the national roll-out of the new deal for lone parents would be brought forward to April 1998 for all lone parents making a new claim for income support. In the eight pilot new deal areas, lone mothers with children under five have been asking for help from the programme, too. That is not surprising, when half the married women with children under five are working. That is why we have allocated an extra £25 million to our new deal—specifically for lone parents whose youngest child is under five—when it rolls out nationally next year. The new deal has been welcomed by lone mothers, and employers have been offering them jobs. The hon. Member for Chingford and Woodford Green can be dismissive about it, but it has transformed the lives of the lone parents whom it has already helped into work. One lone mother with four children, in Cardiff, who started work as a care assistant in September, wrote to us, saying:Of course, we are evaluating the programme. That was decided at the outset. We are spending the best part of £1 million on an evaluation between the eight pilot areas and six matching control areas, so the hon. Gentleman's point about a lack of evaluation is complete nonsense—like, unfortunately, so many of his other points. Does he welcome the help that we are giving to lone mothers, such as the one in Cardiff whom I mentioned? I shall give him the opportunity specifically to put it on the record. Does he back our new deal for work for lone parents?"It feels good to be back at work. I haven't had a proper job for 14 years and I wouldn't have had the confidence to go out and look if it wasn't for the New Deal."
Of course I back the efforts to help lone parents. The Secretary of State may recall that, when she came into government, there was already a programme to be set up in the same eight areas, called parent plus, which was started by the Conservative Government.
rose—
No. The right hon. Lady asked me a question. She shall get the answer.
The right hon. Lady has grafted her policy on to ours, but she lost one essential part. She dropped the control groups that were part of the pilot areas, because she was interested solely in the publicity and in trumpeting success. She does not know why many lone parents get jobs, because she does not study the results.After 18 years of Conservative government, there was no programme for opportunities for lone mothers, only a programme of criticising them from the conference platform in Brighton and Blackpool. The hon. Gentleman is not able to listen to what I am telling him about the evaluation. We are having an evaluation, where we compare the eight pilot areas with six matching control areas.
Of course, one of the biggest headaches for mothers who want to work is child care. We are taking action on that, too. We are implementing a three-part national child care strategy to meet parents' demands, which for so long have not been met: for accessible, affordable, high-quality child care.The right hon. Lady is talking about measuring the results. We visited the pilot areas in September. When officials were asked whether there were control groups to measure the results, they knew absolutely nothing about it. They said that the control groups did not exist. Her Department cobbled them together in late September. That is the reality, because they were not there before. The right hon. Lady is misleading everybody.
I am not misleading the House. The hon. Gentleman is having difficulty understanding this. The local officials were collecting the information. There is an academic programme of evaluation. That is how it is done.
It has been backdated.
It has not. It was implemented at the outset.
As I said, we are implementing a three-part national child care strategy to meet parents' demands for accessible, affordable and high-quality child care. First is accessibility. In his statement to the House last Tuesday, my right hon. Friend the Chancellor of the Exchequer announced £300 million to extend out-of-school child care. That is another manifesto promise delivered. We shall extend out-of-school child care to every community in Britain. There will be an extra 30,000 out-of-school child care projects—up from only 3,500 at present. It will mean places for nearly a million children, so that child care will be available after school—possibly before school—and certainly in the school holidays and during in-service training days. We are making swift progress on our plans. No blueprint will be imposed by Whitehall. We shall build on what works best at local level, using the expertise and experience of the public, private and voluntary sectors. I wish to announce to the House that next month my right hon. Friend the Secretary of State for Education and Employment and I will be bringing together the key child care players in a joint conference to drive forward our work on the national child care strategy, which will build up to a further announcement in January. The conference will be chaired by the Under-Secretary of State for Education and Employment, my hon. Friend the Member for Newport, East (Mr. Howarth) and by the Under-Secretary of State for Social Security with responsibilities for women, my hon. Friend the Member for Lewisham, Deptford (Ms Ruddock). The hon. Member for Chingford and Woodford Green implies that our massive investment in child care was dreamed up over a weekend. I invite the hon. Gentleman to read the Labour party's manifesto, in which we stated that we would have a national child care strategy starting with a network of out-of-school clubs partially funded by the lottery. There is nothing mysterious or even spontaneous about our approach. Our policy is what parents want, and it is what we are delivering.rose—
No, I shall not give way.
Secondly, there is affordability. We have already announced extra help for parents with the costs of child care through the £100 child care disregard in family credit. There will be more help with the cost of child care through the working families tax credit, which my right hon. Friend the Chancellor of the Exchequer set out in his pre-Budget statement last week. Thirdly, I move on to quality. We have always argued that the issue is not only about more places but about quality, and that means high-quality child care. We must ensure that there is the proper quality of child care.Will the Secretary of State give way?
I shall not give way to the hon. Lady, because it is clear that she is trying to speak up for the Government rather than the Opposition. I shall not give way to her while she seeks to play that role. Of course, the hon. Lady was never much in support of the Conservative party when it was in government. Perhaps she is following a familiar line.
As part of ensuring that properly qualified staff are available as child care expands, we are investing £100 million to train 50,000 young people as nursery and play staff through our welfare-to-work programme, leading to qualifications as a play worker for the over-fives, or as a child care worker for the under-fives. Together, those measures constitute the biggest programme of investment in child care that this country has ever seen. Child care is no longer an afterthought in social policy, but it was not even that under the previous Government. The Labour Government understand that child care is central to economic policy and welfare to work.Will the Secretary of State clarify one aspect of her approach to lone parents with young children? This is a genuine question. I am not clear about the right hon. Lady's position. Does she think that it is a valid choice for lone parents with young children to stay at home to look after their children?
It is a choice that married women who are not trapped on benefit make. Half of married women with children under five work, which means that half of married women with children do not. Only a quarter of lone parents with children under five work. The difference in the participation rate in the labour market, between lone parents and their married counterparts with children of the same age, reflects the fact that the benefit system and the lack of child care preclude lone parents from making the choice. They do not have the choice of going to work. They can only stay at home and live on benefit. Our child care expansion and the welfare-to-work programme will, for the first time, give lone parents a choice. It is a choice that previously has never been open to them.
Will the Secretary of State give way?
No, I shall not give way to the hon. Gentleman. The hon. Member for Northavon (Mr. Webb) asked his question in a much more intelligent way than the hon. Gentleman ever could.
It was not only lone parents whom the previous Government wrote off to a life of dependence on benefits. They also wrote off people claiming benefits for long-term sickness and disability. Five million people identify themselves as sick or disabled, and more than 2 million of them work. There are those whose ill health or disability means that they will never be able to work. They need and deserve proper support and a decent standard of living from the welfare state. There are others who want to work, and with the right help they could do so. However, for too long they have been written off. We shall tackle the exclusion of sick and disabled people, give them the same opportunities enjoyed by other people and empower them to play a fuller role in society. To answer the questions of the hon. Member for Chingford and Woodford Green, of course we are working with disabled people and the organisations that represent them. We are listening to their views. Two weeks ago, we held a major seminar on welfare to work, which was attended by over 40 organisations that represent disabled people. They are playing a crucial role in shaping our approach. For the hon. Gentleman to pose as the friend of disabled people and disability organisations—Or anyone else.
Indeed, or anyone else—is breathtaking.
Disabled people are denied opportunities and they face discrimination. We shall tackle that discrimination by taking action on civil rights and by establishing a disability rights commission, about which more will be said later. We shall help people into work. We shall develop a package of innovative measures to help people with disabilities and health problems to get work and to stay in work. We are investing £195 million from the windfall tax in our new deal for the long-term sick and disabled. I can announce today that we shall be inviting bids later this month to spend the money from the windfall tax. We shall award some contracts on a fast-track basis in late spring and the rest by early autumn. Extending opportunities to work is not only about ensuring that people can be financially independent during their working lives. It is also about ensuring that they have a decent standard of living when they retire. We all know that that means having a good second pension on top of the basic state pension. The previous Government failed both today's and tomorrow's pensioners. The hon. Member for Chingford and Woodford Green made great play of our review of pensions, but we are proud of the way in which we are going about our consultation on pensions. The Conservative Government wrote "basic pension plus" on the back of an envelope only to ditch the scheme six months later. They failed both today's and tomorrow's pensioners. A quarter of today's pensioners have to rely on income support, and a further 1 million do not even claim the income support to which they are entitled. The problem is set to worsen for tomorrow's pensioners. Two thirds of people in work now have no opportunity to save for a second pension in their retirement. They do not have an occupational pension at work and private pensions are a poor deal for them if they are on low earnings, if they work part-time or if they move from job to job. The hon. Member for Chingford and Woodford Green cared much about the private pension industry's opportunities, but he never gave a thought to the people to whom I have referred. The Labour party's manifesto contained a promise to address the central areas of insecurity for pensioners. We said that we would give priority to the poorest pensioners, and we have already made progress. In July, I announced a fundamental and wide-ranging review of pension provision. One of the key challenges is to provide decent pensions for all. Last week, as part of the review, we published a consultation document on the detailed framework for stakeholder pensions. We are making progress. Stakeholder pensions are designed to provide good pensions for people who do not have an occupational pension and for whom private pensions are poor value for money. They will provide a portable pension that is safe, simple and a guarantee of a good deal. At the same time, we are tackling the scandal of the people who lost out because they were mis-sold a personal pension under the previous Government's policies. Our detailed proposals for stakeholder pensions will be published alongside our proposals for the long-term framework for the pensions review early next year. We have had 1,800 responses so far to our pensions review, and we are undertaking detailed consultation on the framework for stakeholder pensions. We want to build a consensus and to consult widely—not for us back-of an-envelope proposals for pensions. We want pension proposals that will last.I know that many of the submissions have proposed that the state earnings-related pension scheme should be phased out or abolished. Would the right hon. Lady be happy to get rid of SERPS, regardless of what the manifesto said?
There is no such thing for this Government as "regardless of what the manifesto said". We are in government to implement our manifesto. People know that our manifesto said that SERPS would remain an option for those who wanted to remain in it—
So the right hon. Lady will not abolish it?
We said in our manifesto that SERPS would remain an option for those who wanted to remain in it.
We are getting help to today's pensioners now. We have already helped pensioners with their fuel bills, by cutting VAT on fuel and reducing the gas levy to zero. Last Tuesday, in his pre-Budget statement, my right hon. Friend the Chancellor announced that for this winter and next, every pensioner household would receive at least £20 to help with winter fuel bills. He announced that those on income support—almost 2 million of the poorest pensioner households—would receive an extra £50. The money will be paid in time to meet this winter's heating bills. Together with the cut in VAT on fuel and other changes, it means that the poorest pensioners will be helped by up to £130 a year. That is making progress on our manifesto commitment to get help to the poorest pensioners, and we are doing more.Will the right hon. Lady give way?
I shall not give way to the hon. Gentleman, who seeks to intervene on the subject of pensioners, unless he explains whether he still believes that he was right to insist on voting for VAT on pensioners' gas and electricity bills. Will he include that point?
I am pleased to answer the right hon. Lady on that very point. The Labour party made much of the fact that it reduced the level of VAT on fuel. Labour Members could not have done that without the support of my hon. Friends the Members for Billericay (Mrs. Gorman) and for Aldridge-Brownhills (Mr. Shepherd). It was the votes of Conservative Members that helped Labour to reduce VAT. No credit is due to the Labour party there.
I hope that Labour will consider this question. What is the cost of the benefits that the right hon. Lady has just read out? It is a miserly £190 million out of the £5 billion that she filched from the pension funds.The hon. Gentleman talks about a "miserly" £190 million, but that is £190 million more to help with fuel bills than his Government ever gave. He voted against our reduction in VAT from 8 per cent. to 5 per cent.
We are doing more, apart from helping with fuel bills and cutting VAT. There are 1 million pensioners on an income so low that they are entitled to income support who do not claim it. My predecessor, the former Secretary of State, said that the reason why 1 million pensioners did not claim the income support to which they were entitled was that they could not be bothered and did not need the money. We do not believe that. We are determined that they should get the money to which they are entitled and we are taking action. We are setting up pilot projects to develop ways in which to get help to the poorest pensioners. Will the hon. Member for Chingford and Woodford Green now admit that his Government were wrong to put VAT on fuel and to try to increase the rate to 17.5 per cent.? Does he back our £50 fuel payments for the poorest pensioners? Will he welcome our further measures to get help to the poorest pensioners? Pensioners want to know where he stands; in fact, he sits saying nothing. Our extra help for the elderly shows how this Government are meeting the people's priorities. After just six months, this Government have already taken important steps to deliver our manifesto commitment to tackle poverty and inequality. We are investing in opportunities to work for people who were written off by the previous Administration. We are taking action to get help to Britain's poorest pensioners. We are preparing the way to ensure security in retirement for tomorrow's pensioners. We are rebuilding a society in which all have a stake. That was our promise to the people of Britain and that is a promise we are keeping.
4.54 pm
I am grateful to have the opportunity to speak this afternoon. I apologise for arriving late for the debate; I was detained on constituency business.
I became interested in the cause of the disabled as a result of having as my secretary in the House of Commons somebody who suffered from considerable disabilities. It was through her that I learned a great deal about the problems faced by disabled people. As a consequence, I had the opportunity to try to help people in my own constituency who suffered from disabilities. I have therefore taken a particular interest in the subject. In the past few weeks, as a result of press comments and discussions within disability organisations, there has developed a real concern that promises 30 CD79-PAGI made to people who are disabled and others who are vulnerable are simply not being kept. I found in my post this morning a letter from a constituent. He has given me permission to read out the letter, which is a copy of his letter to the Prime Minister. He writes:"As a Labour supporter for the whole of my adult life—I am now 66 years of age—I am quite frankly disgusted by the plans to `Crack-down' upon the disabled members of our community.
The letter-writer, referring to his wife, then says:I firmly believe that you have lost sight of the basic philosophy of Labour, that of caring…recent announcements of introducing taxation to Disability benefits have made me decide to write to you to protest most vehemently."
Those fears may or may not be justified, but those fears are out there because of a number of developments that have recently occurred."Now, we read that she is likely to have her pitifully small benefit taxed."
Does the hon. Gentleman recall that when his Government introduced incapacity benefit in place of invalidity benefit they introduced tax on that key benefit for disabled people?