Proceeding contribution from David Gauke (Conservative) in the House of Commons on Monday, 2 February 2009. It occurred during Opposition day on Government Capital Expenditure.
Government Capital Expenditure
I agree with that intervention. It appears that this is a Labour Government in reverse. Normally they come in, are reckless, and are forced to take more conservative measures. The present Government appear to have done the reverse. I return to a further point about public works, which is essentially a practical argument. I will not develop the argument in great detail, but all parties would agree that where, within existing budgets, it is possible to bring forward projects, given that land and labour are relatively cheap and available at present, it is sensible to do so. Indeed, on the subject of social housing—the point was made earlier—where there are no rigid rules preventing private housing development which has been mothballed from being taken into social housing use, there is a strong argument for considering that. There may well be merit in the proposals set out by the Liberal Democrats, but they are not a response to the recession. They are not a way of pump-priming the economy. For example, one of their proposals is a five-year programme to insulate schools and hospitals. That may be a sensible policy, but it is not a response to the recession. They advance an argument for improving railway infrastructure. There may be something to be said for that. I looked at the set of schemes that they proposed, the various lines that would be improved or doubled, and the destinations and areas that those serve. The list is interesting. Can the House spot a link? It includes Oxford, the Lake district, Lewes, quite a few destinations in the west country, Southport, Chesterfield, Hazel Grove, Cheltenham, Colchester, and a double whammy—the line from Eastleigh to Romsey. [Interruption.] The list is not exclusive. I did not see any reference to Wolverhampton, but perhaps that is the least of the worries of the hon. Member for Wolverhampton, South-West (Rob Marris). The policy is not focused on the recession. It is focused on the ““Focus”” leaflet. The problem of getting public works expenditure to tackle the recession is not unique to the UK. It is worth quoting what the US congressional budget office found when it examined the $356 billion spending proposals as part of the fiscal stimulus in the US. It concluded that only 7 per cent. would be spent in 2009 and 31 per cent. in 2010. There is a practical point—planning permission and various details need to be dealt with. It is not easy to do that quickly.
Secondary information
- Type
- Proceeding contribution
- Reference
- 487 c619
- Session
- 2008-09
- Chamber / Committee
- House of Commons chamber
- Subjects
- Banks Construction Capital investment Housing Finance Fiscal policy Economic situation International Monetary Fund Public expenditure Schools Economic recession
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- View this Proceeding contribution on www.publications.parliament.uk
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