Alistair Darling: That is not quite what the Governor said, but I say to the hon. Gentleman that we are committed to halving the deficit over a four-year period, which means a sharp reduction in spending. We propose to do that once we believe that recovery is established, from 2011. The Governor made the point that to withdraw support prematurely would risk damaging the economy. I agree with the hon. Gentleman...
Alistair Darling: Inevitably in markets, people say things for different reasons, but what is important is that people are left in no doubt that we have a firm proposal to reduce the deficit over a four-year period. When one looks at the pre-Budget report, one will see that the structural deficit, which begins to be reduced next year, comes down by something like two thirds over that period. That is an example...
Alistair Darling: The only rating that is being downgraded at the moment is the shadow Chancellor's. I put it to the shadow Chief Secretary that a week ago, the Leader of the Opposition said: "We cannot go on like this...And you just need to look at Greece to see what happens if we do" but yesterday, the shadow Chief Secretary, when asked on the television-
Alistair Darling: As I set out in the pre-Budget report, we will continue to provide fiscal support during 2010-11, alongside the monetary policy action being taken by the Bank of England.
Alistair Darling: I very much agree with my hon. Friend. It is important to recognise that across the world, including in this country, it is the support given by Governments that has enabled us to avoid the recession becoming a global depression. It is also one of the reasons why countries are beginning to come back into growth. To remove that support prematurely would run the risk of derailing the recovery....
Alistair Darling: As the right hon. Gentleman will know, we have taken steps to ensure that the banks increase the amount of gross lending that they are putting into the economy. At a time when private sector investment has stopped or reduced, if it had not been for the public sector intervention, the downturn would have been much greater than it is. As it is, we can see signs of increasing confidence-he will...
Alistair Darling: As my hon. Friend knows, the Government's policy is to target inflation, but it is the combined efforts of fiscal policy and monetary policy that will make a difference and ensure that we can get through this and achieve the sustainable growth that is absolutely essential. It is very important that we secure that growth and we continue to take no risks with the recovery, and that is why the...
Alistair Darling: The Treasury's responsibilities remain as I have set out on previous occasions.
Alistair Darling: Over the past 12 years, we have taken measures to take an increasing number of pensioners out of tax precisely by raising their personal allowances. [Interruption.] I am sure that the hon. Lady is being unintentionally distracted by her hon. Friend the Member for Southport (Dr. Pugh), but I was making the point that because we have raised personal allowances for older people, we have been...
Alistair Darling: I am sure that there was a good reason. As the hon. Gentleman and the House know, the Freedom of Information Act provides for advice to Ministers to be withheld. As for the document referred to, for the most part, it brings together contemporary literature on the question of fiscal consolidation. It seems to me, however, that it is the hon. Gentleman who has the problem. Five times today he...
Alistair Darling: The House will know that on 10 December last year the Government published a wide range of proposals relating to matters including transaction taxes, increased capital and the insurance levy. All those matters are still being discussed. The IMF has been asked to come up with proposals, which will be discussed at the spring meetings. As I said earlier, there are problems which we know need to...
Alistair Darling: As I said earlier, we have agreements with the Royal Bank of Scotland and Lloyds to increase the amount of money that they are lending to the small and medium-sized enterprise sector. That lending has been issued, although the net figure is affected by the fact that there have been some quite large-scale repayments. In the first instance, the hon. Gentleman should do what I do and write to...
Alistair Darling: First, I think that we should wait and see what the final American proposal is because discussions are taking place and it may not be quite as was reported last week. We will see. In relation to my right hon. Friend's point about what he calls casino banks, the safe investment banks, the problem with that approach was probably demonstrated most vividly in relation to Lehmans. It did not have...
Alistair Darling: Up to a point; I would not want to raise false hopes. As the hon. Gentleman knows, because he has long taken an interest in these matters, for some time, there has been a lot of discussion on how we can open up the waters to the west of Shetland to get at the oil and gas supplies there. It is estimated that about 20 per cent. of oil and gas supplies are there, waiting to be exploited. The...
Alistair Darling: The hon. Gentleman will no doubt be aware that we are discussing that directive with the Commission and the presidency, which is held by Spain, because we have concerns about it. The hon. Gentleman is absolutely right that we must ensure that at one and the same time we have sufficient supervision and regulation to make the system safer while also remembering that that must operate alongside...
Alistair Darling: Well, I have to say to the hon. Gentleman that it was the Scottish National party Government in Scotland who cancelled the Glasgow air link. Therefore, how on earth he has got the gall to stand up and somehow blame someone else really says it all about the nationalists. They cut the rail link; they have to live with the consequences.
Alistair Darling: I refer the hon. Gentleman to the figures in the pre-Budget report.
Alistair Darling: I have said that we should halve the deficit over a four-year period, but the hon. Gentleman clearly thinks that we should go further and faster. How much faster and how much further?
Alistair Darling: That is what we are proposing to do, but in addition, the Governor of the Bank of England said in the same interview in response to a series of questions that he recognised the difficulties that could arise from going too fast and too much further. Let me ask the shadow Chancellor again: if he thinks we should go further and faster, will he tell the House how much further and how much faster?...
Alistair Darling: Let me ask the hon. Gentleman a last time, as it does not seem that I am going to get an answer. If he read the whole of the Governor's reply, the hon. Gentleman would know that he was talking about countries across the world, not just this country. But why will the hon. Gentleman not answer the question? He quite clearly hints that he would like to go further and faster, so why will he not...