Clause 29 — Regulations etc.

Part of Oral Answers to Questions — Prime Minister – in the House of Commons at 4:30 pm on 17 June 2009.

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Photo of Dan Rogerson Dan Rogerson Opposition Whip (Commons), Shadow Minister (Communities and Local Government) 4:30, 17 June 2009

Our debate has become a little lively for this time of the afternoon. Interestingly, in many of our discussion we have discussed the potential for things to have an influence on local communities and for business rate supplement projects to be introduced, but we are now talking about the backdating of business rates for ports, which is having an impact on communities and businesses up and down this country.

Robert Neill referred to a certain irony, so I should refer him to remarks made earlier today by Mark Durkan about irony in politics. We have heard references to the New Testament and the Boer war this afternoon, which goes to show that our debates are perhaps at their best when we can respond to real situations in the country. Although the Bill might not resolve the situation, it gives us the opportunity—as the hon. Member for Great Grimsby has just said—to send a clear signal of our intentions, to acknowledge the seriousness of the situation and to admit that it is the responsibility of the Government to put it right.

It must be acknowledged that the problem in Humberside and Merseyside has been caused by a mistake by a Government agency, although the businesses involved will have to pay the price. Even worse, their employees will pay the price if their jobs are lost. In the present economic circumstances, the Prime Minister has instructed, inasmuch as he can or is prepared to, banks that are now part-publicly owned to be as sympathetic as possible to businesses that are in difficulty and to support them as much as possible. HMRC has been instructed to be as flexible as possible in collecting taxes, to ensure that profitable businesses that want to invest in the future, provide employment and contribute to the economy are not put out of business needlessly by short-term demands that could be resolved. However, the Government are pressing ahead with the business rate system, which might make businesses unable to trade any longer. People will lose their jobs and it will affect investment in communities served by those businesses, with consequences for other businesses around the ports, including the construction and other ancillary industries. Although we might not have the opportunity to resolve the problem this afternoon, we can be part of the solution and contribute to addressing the issue.

Any problems that occur in port areas might have long-term consequences, as we have heard. If business is driven from the ports, it will find other routes and, probably, never come back. We need to reflect on just what the Government are asking us to do.

Will the amendment solve the problem? No, but it would give the Government the opportunity to acknowledge not only that the issue needs addressing, but that they have a way of dealing with it. It would also acknowledge that the situation in the ports is the fault not of the businesses but of the Government agency. The Government must admit that and try to do something to resolve the situation.

The Minister said that it would be inconsistent for the collection of business rate supplement to follow a different path from the collection of business rate. I can see what she means, and perhaps the amendment is an inelegant solution. But it will allow the House to vote and to show that many hon. Members feel that this problem needs to be resolved. If we can demonstrate the strength of that feeling, I hope that we can press the Government into action. That has happened in recent weeks with the Gurkhas. The Government said that there were insurmountable problems of precedent that could not be overcome. Members gave their view on that and, to their credit, the Government reacted. I hope that the same will happen this afternoon and we will reject the motion to disagree. If we stick with the amendments made in the other place, we will have a better Bill as a result.