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The Economy

What a pleasure it always is to follow the hon. Member for Twickenham (Dr. Cable). In a previous debate on a similar topic, I complimented him on his prescience on these matters, which as we have seen today is matched only by his omniscience. I compliment him also on the national reputation for both that he has built up. If he has been so consistently right throughout these difficult times, it can only be for the wrong reasons in some cases. That, of course, is the cardinal sin. Whatever the details of the past, it is not worth going into them today. I do not even want to get into whether the situation started in America or here, because no doubt that will be a matter for historians. For the moment, the point is surely what we are going to do to confront the biggest crisis for 100 years or perhaps longer. The House has done itself good service in its discussion of debt in this debate. It might have been a bit too technical, but underneath it is the fundamental point that we must consider: how serious are the debt levels that we have built up? Although debt will increase as a percentage of gross domestic product, all the best forecasts that I have seen are still projecting that when we are out of the recession in 2011 or 2012, we shall have a considerably lower debt as a percentage of GDP than Japan. The figure is out of all proportion there at more than 100 per cent., which is where we were under Supermac. I believe that the figure here will be less than that of the Germans and probably the United States as well. As a percentage of GDP, the figure is not so terribly frightening. I take the point, however, that everybody has made about debt. The Chancellor. spelled it out with great courage and good sense when he said that we would have to correct the deficit in the medium term, because it would not be sustainable for the level of debt to continue climbing during the recession. He said that it would not be tenable for the country to get into that level of debt. The Tories have tabled a motion stating that we have to deliver on the promises that we have made, every single one of which they opposed—from Northern Rock and the reconstruction of the banks to the fiscal stimulus. The cheek of it is quite unbelievable. The Conservative party must reconsider its untenable position of now supporting the Government’s policy and condemning them for not delivering it, and at the same time saying that it is not working. I do agree that there has been some delay in getting those measures into the marketplace.