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AMENDMENT OF THE LAW

The hon. Gentleman makes his point. The final statistic that I will cite is that the London commodity market’s share of world trade in metals is 90 per cent. That piece of financial journalism thus, perhaps counter-intuitively, supports the framework and environment that my right hon. Friend the Chancellor has set up. I have in front of me a copy of the 4 March edition of The Sunday Times, which includes a column by David Smith. Those who have followed the journalistic career of David Smith will know that he is not necessarily a friend of this Government. Indeed, I recall that during the couple of years before we took power in 1997, part of his advice to those who wanted to make investments around the world was that they should leave the country, which shows his pedigree. His piece in The Sunday Times was called—this is a description of the economy—““These are the best years of our lives””. How did such a respected journalist, who is independent of the Government, come to that view if what Conservative Members often say is true? David Smith’s article included phrases such as"““as good as it gets””" and"““It is hard to think of a better … period in Britain’s modern economic history.””" On growth rates, he wrote:"““The average growth rate has been 2.8 per cent. better than Britain’s … long-run average of 2.5 per cent. … The economy is nearly 5 per cent. larger than it would have been””." That means that some £60 billion to £70 billion extra wealth has been created than would have been the case under the long-term trend growth rate. He also writes:"““Inflation since 1992 has averaged 2.6 per cent.””" which is low in any historical circumstances. We still have that kind of average inflation rate. He also talks about stability, which I would say has been a key economic driver, and I am sure that Members in many quarters of the House would agree. Important though inflation is, we should also take note of the surrounding absence of volatility. In previous economic cycles, and in the 18 years before the Labour Government, there was a trade-off between growth and inflation, but the volatility has come down sharply. In David Smith’s words,"““It hasn’t just been a case of no more boom-and-bust. There have also been no more wild swings in inflation.””" That is good for business, and it is certainly good for my constituency. He rounds off his point on stability by saying:"““Britain’s performance in terms of stability has gone from being the worst in the advanced world to something near the best””—" and of course that success story continues. We should not just take David Smith’s word for it He cast around for other unlikely sources of support to offer an objective view of the Government’s record, and he quotes Professor Tim Congdon. Those who have followed the area of policy that we are discussing for a number of years know that Professor Tim Congdon is not acknowledged to be a Labour supporter. In fact, as David Smith says, Congdon was given a CBE by the Tories, but not necessarily for services rendered, but we will not go there. Congdon says that after"““two decades of boom-and-bust””" we have the most stable and successful economy of modern times, with not only low inflation, but a short, sharp drop in volatility. He says:"““The improvement on…inflation…has not been at the expense of the so-called ‘real economy’””." In other words, there is a firm basis for the belief that what we see as the proceeds of success—investment in our public services—are based on reality, contrary to what Opposition Members would have us believe. One point that is raised, almost like a kiddies’ scare story, is the subject of debt. It is often said that we are in a kind of overblown bubble and have a debt-ridden economy. Congdon has a view on that. On the idea that we are drowning in a sea of debt, he says that there is probably more nonsense talked on that issue than on anything else. He says that it is consistent with a grown-up economy that people should have control over their own lives, and that included them making decisions on debt. He goes on to say:"““Generally, people have a far better understanding of their own particular financial circumstances than anyone in Westminster, Whitehall or the London-based media.””" The article then quotes a few figures:"““Unsecured debt is just 3 per cent.-4 per cent. of household wealth. All household debt is about 1½ times annual income, but the net wealth of the sector is seven times income. The surprise is not that debt has risen but, given the low-interest-rate environment, it has not risen more.””" That once again emphasises the idea of stability.