1. How many military sites there are in Northern Ireland serving security purposes; and if he will make a statement. (175916)

The peacetime Army garrison in Northern Ireland currently retains 12 sites.

I am grateful to my right hon. Friend for that answer. Of course, all of us across the House welcome that further symbol of normalisation. Has he received any representations on handing over some of the disused sites, either to local communities or to the Northern Ireland Assembly, for their overall benefit?

I have indeed received a number of representations. It may be worth reminding the House that following the reinvestment and reform package in 2002, five sites were transferred to the Executive. My right hon. Friend the Prime Minister and I are in correspondence with the Executive on questions to do with making available further sites that arose following the joint declaration.

Further to that answer, will the Secretary of State elaborate on any discussions that he is having with the Ministry of Defence, given that some sites are now coming into the public domain and are offering economic regeneration, such as Fort George and Ebrington in Londonderry? If other sites were available, they could act as an economic driver in deprived communities, offering them employment opportunities.

The hon. Gentleman makes an important point. May I congratulate him and the hon. Member for Belfast, North (Mr. Dodds) on the work that they have done to try to attract investment to Northern Ireland? Obviously, I wish every success to the investment conference in May, which my right hon. Friend the Prime Minister and I will support in every way that we can. The gifting of military sites is obviously an important issue for the Assembly and the Executive, and the five sites that were gifted in 2002 are an important part of the process. Discussions are taking place with Members of the Assembly and the Executive, and with the hon. Member for West Tyrone (Mr. Doherty), about the two sites in Omagh. I do not want to raise expectations about what the Government may be able to do, but I should just say that the proposal for an educational campus is an extremely good and imaginative one. The Government remain committed to helping to encourage investment and development in Northern Ireland in every way that we can, as we did through the £18 billion investment package and the comprehensive spending review.

Given that before demilitarisation in south Armagh the police expressed concern about their ability to deal with the security situation there, what assessment has the Secretary of State made of general safety in the area, and the ability of people there to work with the police? No arrests have been made following the Paul Quinn murder, and there has been an increase in fuel smuggling. Is not the situation in south Armagh rather difficult? How happy is he with that?

The hon. Gentleman raises a number of issues about the security situation in south Armagh, particularly in relation to the investigation into the murder of Paul Quinn, murder that everybody has condemned. I met Paul’s parents immediately before Christmas to discuss the progress of the ongoing police investigation, which, as hon. Members will know, is being conducted by the Garda, because the murder took place south of the border. There is extremely close co-operation between the Garda and the Police Service of Northern Ireland, and the Chief Constable has observed that there is unprecedented co-operation from the community in south Armagh, but it is of course a very difficult investigation.

On the wider issue of criminality in south Armagh, as Independent Monitoring Commission reports have observed, there are clearly still problems of criminality in that part of Northern Ireland but, again, that should be seen in the context of an improving situation, improving—

Order. I do not wish to stop the Secretary of State, but I must have briefer replies, in fairness to those whose names are on the Order Paper. I call David Taylor.

2. What recent assessment he has made of the effectiveness of devolved government in Northern Ireland. (175917)

The restoration of devolved government in May last year has given Northern Ireland what it wants: locally elected, accountable politicians taking decisions on the issues that matter to the people of Northern Ireland.

As Northern Ireland’s institutions bed down, devolved government is starting to deliver a shared future of peace and partnership for nationalists and Unionists—a future of which a past generation, involved in that all too recent nightmare of sectarian violence, could only have dreamed. Is not the logical next step to encourage a political realignment and framework on the island of Ireland under which more parties are organised on a 32-county basis, thereby denying Sinn Fein fundamentalists the effective free rein that they too often enjoy?

My hon. Friend makes an important observation. Political parties and political organisation is a matter for people who live and work in Northern Ireland. However, as he remarked and I underline, it is an illustration of just how different life is today in Northern Ireland that the discussion now is about the future of democracy and political institutions, and a vibrant political culture it is, too.

We all welcome the progress that has been made in devolution in Northern Ireland in terms of stability moving forward, but does the Secretary of State accept that in both communities in Northern Ireland there is little appetite for the devolution of policing and justice powers? Does he accept that as far we are concerned, it is not on the agenda? Does he further accept that continuing to push against a door that is not only locked, but triple locked, is counter-productive?

There are many matters on which I would be delighted to agree with the hon. Gentleman, but on the proposition that people in Northern Ireland are not looking forward to further devolution of policing and criminal justice, I beg to disagree. Opinion polling shows that more than 60 per cent. of people in Northern Ireland now want the Executive and the Assembly to make progress on the second stage of devolution. That is a matter on which Members have been elected to the Assembly in Northern Ireland and it is what people in Northern Ireland expect. It flows from the St. Andrews agreement, and I encourage the hon. Gentleman and his colleagues to make progress on the matter as quickly as is sensible.

I join the Secretary of State in recognising how well institutions are working. That goes to show that when everyone is committed to allowing arrangements to work, they will work well. If we want to add to the effectiveness of the institutions of devolution, surely we need to add to the confidence by ensuring the devolution of justice and policing, not just to complete the devolution project and the policing change, but so that all parties can unite to defy and deny the dangerous lie coming from dissident republicans that the policing arrangements are about Crown forces and the British police force. Is not the best way of all parties uniting against the agenda of dissident republicans is to secure the devolution of justice and policing?

I entirely agree with the hon. Gentleman. The best way of demonstrating that to every dissident in Northern Ireland is for politicians to reflect what people who live and work in Northern Ireland want, which is the second stage of devolution that of policing and criminal justice. In relation to the investment conference and attracting investment, there could be no greater show of the future stability of Northern Ireland than local politicians embracing the devolution of policing and criminal justice sooner rather than later.

I hate to be the one to break the cosy consensus, but does the Secretary of State accept that the operation of devolved government could be much more effective if the Executive were to take on board and to demonstrate the same commitment that his Government demonstrated towards working for a shared future? Although it is part of the ministerial oath of office, there is no reference to it even in the programme for government. The Executive could give an early indication of a small commitment to working towards a shared future if they would get on and appoint a victims’ commissioner.

The appointment of a victims’ commissioner is a matter for the Executive. I invite the hon. Gentleman to be part of the cosy consensus that we all so warmly enjoy. Huge progress is being made. It is sometimes best to judge these things not by words, but by actions. When the Executive unanimously agreed the draft programme for government, the investment strategy and budget, as they did in October 2007, we can see what progress has been made by politicians across the spectrum in Northern Ireland.

Does my right hon. Friend agree that one of the ways to make sure that the long-term settlement in Northern Ireland works is through the expansion of integrated education? At present, 95 per cent. of children do not meet people from other cultures. What can he do to encourage integrated education?

Academic selection is the issue that my hon. Friend touches on. It is entirely a matter for the devolved Administration. The Minister of Education has set out her vision for the education system. That is now a devolved matter, but I look forward to hearing more about the details of how she will take it forward.

I wish the Secretary of State a happy new year. I am sure that he is relieved to be in his place and that the predictions made by the new year blogs have so far proved incorrect. In his own new year message, the Secretary of State said that devolution would be effectively completed by the transfer of justice and policing in 2008. Further to his reply to the hon. Member for Belfast, North (Mr. Dodds), does he think that that will happen this year?

Yes, I do, and I do because I see that this is something that the people of Northern Ireland want, and from which the people of Northern Ireland continue to draw every confidence. They see an Executive working effectively, being prepared to make difficult decisions and being able to embrace the clear vision and future for those areas that have been devolved. The appetite for devolution of policing and criminal justice is growing in Northern Ireland. Of course, it is based on confidence, but the embracing by Sinn Fein of policing and criminal justice and the steps that have been taken in the last few months are yet more signals of that. It is now up to local politicians to push the agenda forward and to adopt stage two.

But in the past six months, I have not met a single Unionist who either expects or wants that to happen in 2008. In the short time that the right hon. Gentleman has left, how does he propose to persuade the Unionist community that he is right and it is wrong?

I am sorry to disturb the cosy consensus in my turn, but I do not really think that it is a judgment of right and wrong. Most Northern Ireland politicians believe that it is right to move to stage 2; the issue is when. Therefore, this is not a matter of right and wrong; it is a matter of whether we should move within the St. Andrews timetable, which I believe that we should, and on which the Government will be ready to deliver. It is a matter for consensus to be achieved between the politicians and the Executive, but whenever they stand ready to ask for it, we will be ready to deliver devolution, and I believe that the confidence will be there to deliver that this year.

3. What recent discussions he has had with the Police Service of Northern Ireland on measures to deal with antisocial behaviour. (175918)

Tackling antisocial behaviour is a central theme of the community safety strategy and a priority for community safety partnerships. The police and other agencies work closely through the partnerships to reduce antisocial behaviour and the fear of crime.

My hon. Friend will be aware that antisocial behaviour is not just specific to Northern Ireland, but occurs throughout the United Kingdom, and devolved Administrations have different solutions for different problems. Is it not time that we got together with the devolved areas and set up a national taskforce under the UK Government to bring together all the good practice to stamp out such behaviour once and for all?

My hon. Friend is absolutely right that antisocial behaviour is an issue throughout the United Kingdom, in his constituency and mine and throughout Northern Ireland. He makes an interesting suggestion. Although it would need more than my agreement before such a taskforce could be established, I am happy to consider his proposal, to discuss it with ministerial colleagues and to report back to him. But most important of all is that we must learn the lessons of good practice wherever they occur throughout the United Kingdom.

One of the tests of policing in Northern Ireland and making the police acceptable is how they deal with antisocial behaviour. Does the Minister agree that it is difficult to persuade the public that the police are serious about antisocial behaviour when some senior officers seem to suggest that the police should empathise with gangs of youths rather than deal with them when they engage in criminal acts? In Northern Ireland, antisocial behaviour orders are rarely used by the police. What, in his discussions with the Chief Constable, will the Minister push the police to do to ensure that antisocial behaviour is dealt with?

I have regular discussions with the Chief Constable and I had a meeting with him earlier this week when we discussed antisocial behaviour. It is a priority for him and for the PSNI, and he was able to report to me that antisocial behaviour is down by more than 3 per cent. compared with last year. So rest assured that this is a priority for him and the police, but in the end, for the short term—this is relevant to the devolution of policing and justice powers—we can manage a situation where some agencies, such as the police and the Youth Justice Agency, are accountable to Northern Ireland Ministers, but other agencies, such as the Housing Executive and social services, are accountable to locally elected Ministers. But surely the day must come soon—people should have confidence in this—when the system is joined up and accountable at a local level.

Does the Minister accept that in my constituency the police claim time and again that a lack of resources, particularly human resources—manpower and womanpower—restricts them in dealing with antisocial behaviour? How will we reconcile that situation? Can we get extra resources into policing, and not only into Belfast, South? This morning, I heard the mayor of Antrim on the radio discussing the same problem in Antrim town. Can the Minister give us some assurance that the resources will be provided and that the police are not simply left saying that they are too overstretched to tackle antisocial behaviour?

I do not accept the argument on resources; we have just had a superb settlement on financing policing for the next three financial years. It will enable the Policing Board and the Chief Constable to keep in place 7,500 police officers in Northern Ireland over the next three years.

The hon. Gentleman is right to say that that the police need to be applied and focused at the community level. Indeed, the Chief Constable himself is committed to the development of community policing in Northern Ireland and to working in partnership with other agencies and the community. The police cannot resolve the issues alone; they have to work with other partners. I assure the hon. Gentleman that the PSNI is committed to that.

4. What assessment he has made of trends in crime in Northern Ireland. (175919)

6. If he will make a statement on levels of crime in Northern Ireland. (175921)

In the past five years, crime overall fell by 15 per cent. in Northern Ireland. Domestic burglary fell by 33 per cent., and car crime by 52 per cent. Figures released by the police before Christmas showed a further reduction in crime during the current financial year.

Does the Minister share my concern at the findings of the Independent Monitoring Commission that vigilantism and extra-judicial violence, threats and intimidation by Sinn Fein-IRA are still prevalent in many areas?

Whenever such actions by paramilitary organisations and others take place, they are to be deplored. However, I put it to the hon. Gentleman that between 2001 and 2005, paramilitary attacks reduced by half; indeed, in the following year—2005-06—they halved again.

We have moved to far more normal times in Northern Ireland, where paramilitary attacks are becoming a thing of the past. However, of course criminality continues. We need to bear down on it and all the agencies concerned are committed to that.

Is the Minister content that enough is being done to tackle fuel fraud in Northern Ireland? He will know that recent figures show that only 1 per cent. of seizures end up in convictions. Has that something to do with the fact that in many cases fuel fraud results in intimidation of petrol retailers and their families? What more can be done to close down the illicit trade of the fuel thugs in Northern Ireland?

We need to do everything that we can to crack down on those dealing in fuel fraud in Northern Ireland. Criminal convictions alone are not the only measure that we should use, however, because disruption of such activities is also an important aspect of the strategy. I assure the hon. Gentleman and the House that in December I had a meeting with Her Majesty’s Revenue and Customs and with the PSNI. We intend to establish within the Organised Crime Task Force a specific action group to deal with fuel fraud. I am determined to crack down on it wherever we can.

Does my hon. Friend agree that, as elsewhere in the UK, much of the crime in Northern Ireland is low level crime and disorder, which can be effectively dealt with by crime and disorder partnerships? If my hon. Friend is taking up the suggestion of my hon. Friend the Member for Glasgow, North-West (John Robertson)—to have a national-level crime and disorder partnership—will he look at the best practice in Wales? Of the 376 crime and disorder partnerships in the UK, the one in my constituency, in my county of Denbighshire, is the third best.

We are always happy to learn lessons from colleagues in Wales, and I am sure that the whole House will be interested in my hon. Friend’s experience there. In the end, cracking down on low level criminality, social disorder and antisocial behaviour requires effective local partnerships. In Northern Ireland there are 26 local community safety partnerships in which the police work with local councils and a range of other agencies to make sure that those issues are dealt with. That will be in common with my hon. Friend’s experience; that is the kind of approach that works.

The Minister will be aware of recent criminal and sectarian attacks on Orange halls; most have taken place in my constituency. Will the Minister confirm that by February of this year he will move legislation through the House to enable those Orange halls and lodges to claim compensation?

We all condemn unreservedly the attacks on Orange halls. I was able to join the hon. Gentleman in a visit to Ballyworkan in his constituency, where a deplorable attack took place before Christmas. Members of the Orange Order are trying to do their best to put something into communities through their Orange halls, and I condemn unreservedly those who attack them. As he knows, I am committed to ensuring that where Government compensation is due it should be paid quickly, but we need to ensure that the commercial cover works as well. Over the next few weeks, we will do everything possible to ensure that the commercial option is thoroughly investigated and examined. My right hon. Friend the Secretary of State has made a clear commitment to the Orange Order and to members of the hon. Gentleman’s party that we will look at this again in early March.

5. What recent discussions he has had with the police authorities in Northern Ireland and the Republic of Ireland on drug smuggling; and if he will make a statement. (175920)

There is close co-operation between the Police Service of Northern Ireland and An Garda Siochana, and I have regular discussions with all law enforcement agencies about drug smuggling and other forms of organised crime.

I thank the Minister for that reply. He will know that drug smuggling is becoming an increasing problem in Northern Ireland. What is he doing to ensure that the drug bosses at the very top are dealt with and prosecuted?

What is required is close collaboration between the police forces north and south of the border. They are actively engaged in that; they have regular contact and share intelligence. Indeed, in December—just a few weeks ago—a joint operation north and south of the border intercepted an organised criminal gang, some of whom were arrested north of the border and some south of the border. There have been a number of arrests and some people have been charged. That kind of effective enforcement action will, in the end, remove the drugs barons and others who profit out of the misery of drugs, who should rightly be out of the community and in prison where they belong. [Interruption.]

Will the House come to order? One corner is very noisy indeed.

I am sure that the Minister is aware that the Chief Constable feels that he is being severely held back by the amount of time that his force is having to spend looking back over past matters and not getting on with matters such as that which my hon. Friend the Member for Shrewsbury and Atcham (Daniel Kawczynski) mentioned—the joint pursuit of those responsible for the drugs problem. Will the Minister do all that he can to ensure that the Chief Constable is allowed to get on with his job, which is policing for today and tomorrow rather than so much for yesterday?

The right hon. Gentleman is entirely right. Every pound that is spent on policing the past is a pound that is not spent on policing the present and making the future absolutely safe. The Government have established, under Robin Eames and Denis Bradley, a commission to investigate whether there is a way of drawing a line under the past that will enable the whole of society in Northern Ireland to move forward, including on policing. We must devote all the resources that we can to ensuring that Northern Ireland is a safe place in which to live and work.

Does the Minister understand the frustration that is felt within communities in Northern Ireland when they see the godfathers of the drug smuggling industry swanning around the countryside endlessly enjoying their ill-gotten gains, many of them not having worked a day in their lives? When will we have effective measures taken against these abusers of society?

The hon. Gentleman is right to express his anger about such people. Where possible, they should be arrested, prosecuted and put behind bars. Short of that, it is also possible to seize and remove the assets that they have gained through their criminality. I can tell the hon. Gentleman, and the House, that in the first six months of the current financial year some £10 million-worth of criminal assets were seized and confiscated. That is an encouraging use of the powers that we now have to track down and crack down on those criminals wherever we possibly can.

8. If he will make a statement on the security situation in Northern Ireland. (175923)

The security situation in Northern Ireland has vastly improved in recent years. However, the recent serious, although isolated, incidents highlight the continued threat posed by a small handful of individuals who continue to live in the past, not the future.

What success are the police having in dealing with dissident organisations that are now turning their focus from terrorist to criminal activities?

The police continue to make significant progress in dealing with criminality in Northern Ireland, which is why crime figures there are among the best in the UK. However, at no point will we be complacent about those dissident elements in republicanism and loyalism that continue to pose a small and isolated threat. Equally, let it be clear that those people have no support in the community and that we will continue to hunt them down.

While the security situation has undoubtedly improved, does the Secretary of State agree that it would be entirely wrong and a deep injustice if the perpetrators of terrorist crimes in Northern Ireland were to be granted an amnesty?

The hon. Gentleman makes an important point. I realise that he is effectively commenting on remarks made by the commission on the past. Let me remind him that its deputy chairman, Denis Bradley, has said that nothing is ruled out and that nothing is ruled in, and what matters is that the commission collects views. He accepted that there are some who have a view about an amnesty and that it is for others to have a view about that and for the group to make an assessment of that.

Q1. If he will list his official engagements for Wednesday 9 January. (175851)

This morning, I had meetings with ministerial colleagues and others. In addition to my duties in this House, I shall have further such meetings later today.

The Prime Minister will know that economic inactivity in constituencies such as mine will only be successfully tackled with sustained investment in the creation of jobs, and the giving of skills and support to people. However, given the growing economic global uncertainty, will he meet me and colleagues who represent the valleys to look at the work already being successfully done by the Department for Work and Pensions and others to build our economic capacity? Will he assure me that any responses he makes to the global uncertainties that there may be in the economy will not be allowed to damage the sustainability of that investment?

Long-term unemployment in my hon. Friend’s constituency is down 72 per cent. since 1997. Since 1997, there have been 135,000 new jobs in Wales, and there are nearly 3 million new jobs in the country. I believe that as we face these uncertain global times, when there are difficulties that have started in America that affect the whole of the world economy, it is important to remember that what makes us well placed to face such difficulties is the low inflation and high levels of employment we have achieved in this country, and the low interest rates that stand us in good stead to face global uncertainties. Of course I will be happy to meet my hon. Friend and his colleagues to talk about those issues.

May I start be welcoming the hon. Member for Sheffield, Hallam (Mr. Clegg) to his post? [Interruption.] He is moving away from me already. He is the fourth Liberal Democrat leader that I have faced, and I wish him well—[Interruption.]—although not that well. I am simply relieved that it is no longer my party that has this habit of replacing its leader on quite such a regular basis.

A few months ago—[Interruption.]

Order.

I am on my second Labour Prime Minister as well.

A few months ago, a Home Office Minister said:

“It is the Government’s policy that ID cards should eventually be compulsory for everyone resident in the United Kingdom who is aged 16 or over.”—[Official Report, 20 March 2007; Vol. 458, c. 784W.]

Is that still the Government’s policy?

That is the policy, but it is a matter for Parliament to decide after we have looked at the voluntary system in place. All the evidence we have had over the past few months is that where information—[Interruption.]

Order. Allow the Prime Minister to answer the question.

The whole purpose of identity cards is to protect people’s identity and the way to do that is to use, in addition to the passport information that will be part of the identity card, biometrics so that use of the information cannot be triggered other than by the facial or fingerprint data that are part of the biometrics. That is the purpose of identity cards.

The right hon. Gentleman’s police adviser, Sir John Stevens, and Lady Neville-Jones, his security spokesman in the House of Lords, both support identity cards.

We have learned in the past few months that it is completely unsafe to trust the Government with any more of our identity information. If the Prime Minister wants to trade quotes, what about one from the Chancellor of the Exchequer? He said that identity cards were “not necessary”. He continued:

“I do not want my whole life to be reduced to a magnetic strip on a plastic card.”—[Official Report, 2 March 1992; Vol. 205, c. 70.]

Compared with being Chancellor in the Government, being a magnetic strip on a plastic card would probably be a welcome relief.

If it is the Government’s policy to press for compulsion, why did the Prime Minister say in The Observer on Sunday that,

“under our proposals, there is no compulsion for existing British citizens”?

Why did he give such a misleading answer?

Because there has to be a vote of Parliament. We have passed the original identity cards proposals. That is a voluntary system. I have to tell the right hon. Gentleman that not only do some members of his party support identity cards, but people recognise that the identity card will contain little more than the information that is now given for passports. I have to ask him: does he support identity cards for foreign nationals, which we are introducing this year?

Everybody in the House wants proper biometric visas for people visiting this country. The question for the Prime Minister is why he cannot give a straight answer on identity cards. Let me try it another way. What is his personal view? My personal view is that I am against compulsory identity cards. What is his view? Is he in favour—yes or no?

It is the Government’s policy to move ahead with this, but subject to a vote of Parliament, and depending on how the voluntary scheme works. I ask the right hon. Gentleman again: does he support ID cards for foreign nationals—yes or no? He says that he is against them; is he in favour of them for foreign nationals?

I just answered the Prime Minister’s question. Does he not recognise that part of his problem is that he cannot give a straight answer to a straight question?

Let us have a look at another vital decision, this time on the economy. It is only three months before the start of the financial year. Businesses throughout the country want to know the capital gains tax rate that they will face in April. Will the Chancellor go ahead with his 80 per cent. increase in capital gains tax rates, or are we set for another humiliating U-turn?

I see that the right hon. Gentleman’s incursion into identity cards did not last long. He cannot answer the central question of whether he supports ID cards for foreign nationals. He could not give me the answer on two occasions. I suggest that the whole country supports ID cards for foreign nationals, and that that is the best protection we have, and one of the best against illegal immigration. If he cannot answer that question, he is not fit to ask questions about other issues.

On capital gains tax, when we came to power it was 40 per cent. Now, under the Chancellor’s proposals, it is 18 per cent. The Chancellor has agreed to consult on its implementation and will report back to the House of Commons in due course. Why did the Conservatives have 18 years of not reducing the rate of capital gains tax?

I remember our cutting taxes and the right hon. Gentleman’s opposing every single tax cut we proposed. The Chancellor of the Exchequer promised the House of Commons that he would make a statement on capital gains tax by Christmas. Business needs to have the answer to that question.

Here is something else about the economy. Goldman Sachs, the Prime Minister’s advisers, state that

“the UK is slowing more than the rest of Europe, the ‘Northern Rock’ factor has badly dented the UK’s reputation… and the UK balance of payments…deficit is now bigger than that of the US”.

Those are the words of the Prime Minister’s advisers.

Let us consider another big economic decision that the right hon. Gentleman must take. At a time of financial turmoil the markets need clear leadership, not more dithering from the Prime Minister. Will he confirm, here and now, that he will recommend Mervyn King for another term as Governor of the Bank of England?

The choice of the Governor of the Bank of England will be made in the usual way and announced in the usual form. On capital gains tax, again the right hon. Gentleman does not return to the issue. He was principal adviser to the Chancellor of the Exchequer when capital gains tax was 40 per cent. He was also principal adviser to the Chancellor of the Exchequer at the time of Black Wednesday. The difference between our country then and now is that inflation at that time was 10 per cent. and the Conservatives could not reduce interest rates, whereas inflation at the moment is 2 per cent. and the Governor of the Bank of England was able to reduce interest rates. We face the global crisis with higher employment than ever before, and we face the global turbulence with low interest rates and low inflation. It is a record that they could never match.

More!

There is plenty more. I remember a shadow Chancellor who sat here and supported every aspect of being in the exchange rate mechanism and every single step that was taken. I seem to remember a politician who when he was in his 20s supported wholesale renationalisation and punitive tax rates, and wore his CND badge with pride. That was the Prime Minister. Is it not the case that his capital gains tax policy is in complete confusion, he cannot make up his mind about the Governor of the Bank of England, and his ID policy is in full retreat? All that is from a Prime Minister who has lost everyone’s identities, seen a run on a bank, and whose Ministers are rocked from one funding scandal to another. He can talk about long-termism all he likes, but everyone knows that it is just a smokescreen for the short-term mess that he has made. Is that not why his relaunch is utterly doomed to fail?

Once again, all these pre-rehearsed lines, all these lines rehearsed in front of the mirror—[Interruption.] They mean absolutely nothing. When it comes to the economy—[Interruption.] Oh yes, we get all these pre-rehearsed lines. People are asking the question: when will the right hon. Gentleman face up to the big challenges? Nobody knows what he thinks about the big challenges: not the country, not the party, and probably not even himself. He flits through all these issues today. When it comes to the economy, let us remember that there were 3 million unemployed under the Conservatives, and we have created 3 million more jobs. Under the Conservatives, 250,000 people lost their mortgages and were repossessed. There are 2 million more home owners under Labour. Interest rates went as high as 18 per cent. under the Conservatives; they have averaged 5 per cent. under Labour. We will return to his record as chief adviser to the former Chancellor of the Exchequer, because he has no credibility when he talks about the economy.

More!

Order.

You are aware, Mr. Speaker, that the President of Somaliland and members of his Cabinet are visiting Parliament at present. Will my right hon. Friend the Prime Minister join me in congratulating Somaliland on the way in which it has worked over the past 18 years, very quietly, through local government elections, parliamentary elections and presidential elections? When the people of the south have no real government and are still in a state of chaos, does not that record command respect from the international community?

I agree with my right hon. Friend, who is a friend of that country. I welcome the visitors to this country, and we will do everything that we can not only to help with international development for the countries with which we are associated, but to help to build the institutions of democracy.

rose—

Hooray! This is going to be an expensive year for the countless British families who face fuel bills of £1,000 or more for the first time. With as many as 4 million British families unable to afford their fuel bills, does the Prime Minister seriously think that a single letter from the Chancellor to the energy regulator is an adequate response?

Let me welcome the hon. Gentleman to the leadership of the Liberal party. I look forward to working with him on many of the issues facing the country. I have said to him in our private conversations that there is an open door for him, and we are ready to discuss the major issues that affect the country where there is common ground.

As far as fuel prices are concerned, it is regrettable that utility prices have to rise, which is as a result of a 60 to 80 per cent. rise in the cost of coal, gas and electricity. That, in turn, is the result of factors that are hitting every economy in the world. What we have done in Britain over the last few years is devote £12 billion to fuel poverty issues. We have had the winter allowance, which I believe the hon. Gentleman’s party did not support, and other allowances to help with energy bills. Only in the last few days, companies have announced that those amounts will rise from £40 million to £56 million in order to protect energy users. We will do everything in our power to avoid fuel poverty in this country.

With 25,000 people predicted to die from the cold in this winter alone, we need a more specific commitment from the Prime Minister. Will he agree today to take action to stop the energy companies from hitting the poorest families with higher bills on prepayment meters so that we can end the scandal of the poorest families paying the most for their energy needs?

We have asked the fuel companies to look further into prepayment energy meters and it is very important to do so. I hope that the hon. Gentleman shares our common interest in avoiding loss of lives as well as suffering and illness as a result of fuel poverty and the cold winter weather. I thus hope that he will support us in asking the energy companies to provide extra money to subsidise the fuel bills of people who are lower paid, and that his party will continue to support us in all the measures, including the winter fuel allowance, that we have taken to deal with fuel poverty.

Q2. Given that there is an ongoing debate in the country regarding the building of nuclear power stations and given that my right hon. Friend will have received advice from all sorts of people about it, can he say whether he has received any advice from Zac Goldsmith, who advised the Leader of the Opposition that building such power stations would be a tragedy? (175852)

We face a major decision about the future of energy in this country. Tomorrow, the Secretary of State for Business, Enterprise and Regulatory Reform will make a statement on energy and on nuclear power. I hope that we can take a decision that will protect the long-term interests of the country. Without taking such a decision on this matter and on renewable fuels, we will become more dependent on foreign sources of supply. It is therefore a shock to me that other parties are looking in different directions on this issue. I know that the Leader of the Opposition wants to be consistent in what he says. However, he said to the CBI that he wanted to make it easier for people to build fuel stations, while also saying to the readers of Green Futures magazine that

“if…we have to keep the lights on, then nuclear might come into the picture”.

Nuclear as a last resort—that is not the proper way to plan for the energy needs of our country.

Will the Prime Minister take the opportunity to pay tribute once again to the gallant service of the security forces of Northern Ireland in the fight against terrorism and crime over many decades of violence? Will he also take the opportunity to rubbish any attempt by the commission on the past in Northern Ireland to validate or vindicate terrorists and criminals in their sordid terrorist war by describing it as a war? Will he utterly rule out any suggestion of an amnesty for terrorists and criminals?

Yes, and it is important to say two things. First, our respect for the security services, the police and the armed forces for the difficult job they did over many years and for the loss of life suffered as a result of their difficult work is clear. Secondly, it is important to move forward with reconciliation. The efforts made by a number of bodies, including the one to which the hon. Gentleman referred, are an important element of building for the future. What we want is a safe, secure, peaceful and prosperous Northern Ireland.

Q3. Given that the new deal, including the new deal for the disabled, has been in place for 10 years and that the Government have passed several Acts to deal with disabled people’s rights, I hope that there is a consensus in this Parliament that people with disabilities deserve the right to work. Does the Prime Minister share my concern that Leonard Cheshire’s report on poverty and disabled people, published this week, shows that 50 per cent. of people with disabilities are unemployed and that one in three children who live with a disabled adult in the household live in poverty? What are we going to do about that? (175853)

I think it is true that, as my hon. Friend suggests, disabled people are twice as likely to be in poverty as people who are not with disabilities, but it is also true that disabled people should be helped into work when that is possible. That is why about 900,000 disabled people have found jobs over the last 10 years, why our pathways to work programme is so important for the future—it has already put 32,000 people into work—and why, in my view, it would be a mistake to abolish the new deal, which does so much to help people back into work.

Members in all parts of the House have expressed concern about the conditions in Guantanamo Bay, and most people are glad to see that it is at last winding down, but can the Prime Minister explain why he has just offered places in Britain to five people from Guantanamo Bay not one of whom is a British citizen, although two of them are wanted in connection with the most serious terrorist charges in Spain?

When people are wanted for arrest in Britain, they will be arrested. When people have to be returned to other countries, we will expedite the process if at all possible. I think the whole House agrees with the hon. Gentleman that Guantanamo Bay should be closed as soon as possible, but when people have moved to our country we will deal with them if there are offences for which they are to be prosecuted.

Q4. In his speech on Monday, the Prime Minister made an important commitment to patient power—giving patients choice in regard to which hospital they go to, which doctor treats them and when they are treated. Will he ask Lord Darzi to work with the medical royal colleges to develop a series of outcome indicators—indicators of the quality of care, hospital by hospital and doctor by doctor—and publish them, so that patients can make informed choices about who treats them when and where? (175854)

The future of the national health service means that patients will have more power over the decisions that affect their lives: decisions about where they have their treatment, the times at which they have their treatment, and with whom they have their treatment. That is an important element of the next stage of the development of the health service. However, it is also important for patients to have information about what is happening in their local hospitals and health areas. One of the next stages of reform—and Professor Darzi is looking into exactly this—is how more information can be made available to patients, and how more patients can become foundation trust members, and how the flow of information can empower patients in a way that gives them more control over their health and their health care. That is the right direction for the 21st century health service.

Q5. Does the Prime Minister think it would be acceptable for the Secretary of State with responsibility for the poor to endorse a sub-prime lender and then accept a £5,000 donation from that lender? How does he think the public will see that? (175855)

As I understand it, the Secretary of State for Wales was visiting a company in Wales, and praising the work that it had done in creating jobs in Wales.

The education and business communities are working hard in Crawley to attract a university campus. Does my right hon. Friend agree that that is the best way to improve aspiration and get our young people into higher education in their own towns and cities, so that they may strive to make this a better country?

In the last 10 years, there have been more than 300,000 more people in higher and further education. We want to create more institutions of higher education—including universities—in areas that do not have that facility, and my hon. Friend has put the case eloquently for new facilities in a range of areas in her constituency. I think it right to say that we want to increase the number of universities, further education colleges and colleges generally in cities and towns that do not already have them, and that will be a big feature of future education in this country.

Q6. When my hon. Friend the Member for Sheffield, Hallam (Mr. Clegg) asked about fuel prices, the Prime Minister mentioned the winter fuel payment. Is he aware that the typical pensioner household now faces bills at least £300 higher than those of four years ago, which more than wipes out the winter fuel payment? Against that backdrop, why are the Government cutting spending on the Warm Front insulation programme? (175856)

Over the last 10 years, we have increased spending on home insulation dramatically. We have encouraged people to insulate their homes and have encouraged draught-proofing, and will continue to do so. As for the winter allowance, I remind the hon. Gentleman that it started at £20, was raised to £50, and for the over-80s is now £300.

Q7. In the 60th year of the NHS, there remain major challenges such ashealth inequalities and the need to provide preventive care. Will the Prime Minister ensure that in the light of the statement he made on Monday areas of disadvantage such as the Nottinghamshire coalfield receive sufficient focus and a fair share of resources? (175857)

I am grateful to my hon. Friend because he raises an important question about the disparity in life chances and the disparity in the ages to which people live in different parts of the country, partly as a result of poverty and partly as a result of information about health. It is important to recognise that, as we expand preventive medicine and as more and more people can have check-ups, whether for breast cancer, heart disease or stroke, the people who will benefit most are the people who are most susceptible to those diseases, who will get quicker treatment, will have their illnesses diagnosed earlier and will then be able to lead healthier lives. That will have a major effect on health inequalities in our country.

Q8. Only yesterday, the Prime Minister said that he wanted to do more to help the Open university, yet last night the Government voted effectively to cut its budget. How exactly does his decision to stop people studying for second degrees square with his supposed commitment to lifelong learning? (175858)

Our commitment to lifelong learning is, first, that those people who have no qualifications whatever should get better chances than they have had in the past to enable them to get both qualifications and in many cases degrees. If the hon. Gentleman has read the report that was done by Lord Leitch, he will know that he says that by 2020 we will need 40 per cent. of the country with degree-level qualifications. Therefore, the first priority for money—that is why there has been that transfer of money—is first degrees and qualifications for those who do not have them at the moment. There is no cut in the overall budget. There is more money going to education than ever happened under the Conservative Government. The difference is between cuts under the Conservatives and expansion under Labour.

Q9. Now that Liverpool’s year as European capital of culture is well under way, has the Prime Minister booked a seat at Anfield for the Paul McCartney concert? Does he recognise the outstanding work being done by Phil Redmond and the Northwest Regional Development Agency? How can the Prime Minister help Liverpool to ensure that the benefits last well beyond 2008? (175859)

The Paul McCartney concert is not the only major event in Liverpool during the year of culture. People not only in Liverpool but all over the country are looking forward to a great success for Liverpool in this year of culture. It is already one of the greatest cities in the world for music, sport and the arts. More people go to museums and art galleries in Liverpool than in any other city, so we wish it well as the city of culture.

Q10. When the right hon. Gentleman started as Chancellor, he was told by the Treasury, “These are fantastically good figures.” Now there is a record trade deficit, record private and public debt and record insolvencies. We know that he has never thanked his predecessor, but will he now say to his right hon. Friend, “Sorry, Darling”? (175860)

When I arrived at the Treasury, I was told that, because inflation was rising and as a result of the failure of the previous Conservative Government to increase interest rates, interest rates had to rise. That was the first statement made to me at the Treasury. That is why we made the Bank of England independent, a more opposed by the Conservative party, and that is why, as a result of our actions, interest rates are half what they were under the Conservative Government on average, inflation is half what it was, and employment is at a record level. We are proud of our record as a Labour Government.

Q11. What is my right hon. Friend’s analysis of the best way to get people from welfare into work? Is it the expansion of the new deal, pathways to work and good-quality child care to help people to overcome the barriers that they face, or is it to force them into work gangs— or be stripped of all their benefits? (175861)

The right policy for getting people back to work is to work with employers who will help people to find the jobs. That is why the local employment partnerships now have 200 companies signed up to them, and it will be 300 very soon. The right way to get people back to work is not to abolish the new deal, as the Conservative party would do, but to place a duty on people to have skills for the future. That is why we will move forward with our plans to create jobs.

Q12. Does the Prime Minister agree that the forcible removal of people from their homes, such as happened during the highland clearances, has no place in the 21st century? If so, why are he and his Government doing exactly that to hundreds of people around Heathrow? (175863)

A consultation is taking place at the moment. I understand that it goes through to the end of February. The proposal is for a third passenger runway at Heathrow. I believe that many people think that that is in the national interest, but I also believe that local views must be taken into account and that is why the consultation is taking place.

Will my right hon. Friend join me in sending the deepest condolences to the family, friends and fellow students of my 16-year-old constituent, Bradley Whitfield, who was killed in the early hours of new year’s day, and will he reassure them that he and the Government will do everything possible—that we will redouble our efforts—to work with the police, schools and community groups to try to protect young people from such appalling acts of violence?

I agree. The whole country was shocked by what my right hon. Friend refers to, and my sympathies go to the family—I believe that the whole House will join her in wanting to pay tribute to the family. We are determined to do everything in our power to deal with these crimes of violence. That is why the Home Secretary will be announcing new measures very soon. That is why we will step up all the actions we are taking against gangs and knives, and against guns as well. We are determined that in those areas where there is the greatest violence, we have the greatest surveillance as well, and we will also take action against the hot spots. My sympathies go to the family of my right hon. Friend’s constituent.