Clegg, Swinson , Baker, and Carmichael quiz the PM

11.47.17am BST (GMT +0100) Thu 17th Jul 2008

• ' . . WHEN will the Prime Minister accept that a winter of discontent is just around the corner?'

[Jul 16] Mr. Nick Clegg (Sheffield, Hallam) (LD): The Prime Minister promised to abolish boom and bust, but now we have got both: inflation is booming, the economy is bust. Energy prices are rocketing, house prices are collapsing, thousands of jobs are on the line, and food prices just go up and up every week. When will the Prime Minister accept that a winter of discontent is just around the corner?

The Prime Minister: I do not know whether the right hon. Gentleman has seen the employment figures today, but employment in this country is at its highest level ever. There are 61,000 more jobs in the economy during the last three months, and while, yes, there are problems, we have inflation that is lower than the rest of Europe and lower than America, we are taking action to take people through these difficult circumstances, which the previous Conservative Government never did when there were problems, and at the same time we are creating more jobs in this economy and we have the flexibility to enable us to withstand events. I would have thought that he would see the economy in its proper context.

Mr. Clegg: The Prime Minister is so out of touch he does not understand the scale of the problem: 5.5 million British families are in fuel poverty and all he can squeeze out of the energy companies is 26p per week for each of those families; 1.7 million people on low incomes are still waiting for a decent home, and his only feeble response is to buy up fewer than 1,500 empty properties. He is tinkering at the edges, obsessed with details. Will he take a summer break, take a step back, see the big picture and come up with real answers to prevent a winter of misery for millions of British families?

The Prime Minister: The big picture is taking action to help hard-pressed families. When the right hon. Gentleman talks about fuel poverty, he omits to mention the winter allowance paid to 11 million pensioners in this country and costing over £2 billion. When he talks about the utility companies, he is omitting to tell us that there is £100 million to help low-income families, and he fails to mention that 22 million families will receive £120 in a tax cut over the next few months. All these things are necessary to help people through difficult times, but I think that people would prefer our solutions to the problem than his.

. . Jo Swinson (East Dunbartonshire) (LD): The most rapidly increasing type of cancer in this country is skin cancer, of which there are more than 80,000 new cases each year. As the Prime Minister heads to Suffolk for his bucket and spade holiday, I am sure that he will be stocking up on sun cream. How can his Government justify charging VAT on that essential health protection item?

The Prime Minister: This issue is looked at from time to time, but I say to the hon. Lady that the more important thing that we are doing is investing £15 billion over the next 10 years in trying to find cures to diseases including cancer and skin cancer. The action of the national health service in making it possible for people to be seen quickly when they are diagnosed with cancer means that 99 per cent. of people suspected of having cancer are seen within two weeks. Those are the actions that we can take, and they will get rid of skin cancer in the long run.

. . Norman Baker (Lewes) (LD): The Prime Minister may have seen in today's press the admission by the airline BMI that it intends to fly empty planes this autumn in order to keep its slots open, and that Flybe, for the same reason, is even hiring actors to fly between Norwich and Dublin to boost passenger numbers. Given the massive carbon emissions for which aviation is responsible, is that not an environmental disgrace? Will the Prime Minister take action to prevent those ghost flights, or will he cave in to the aviation industry, as usual?

The Prime Minister: It would be clearly unacceptable if airlines flew without any passengers whatsoever, simply to maintain their slots. We shall look at the matter that the hon. Gentleman raises and talk to the airlines, and I shall write to him in due course.

. . Mr. Alistair Carmichael (Orkney and Shetland) (LD): On Friday, staff in the Maritime and Coastguard Agency will begin a 48-hour strike. During the previous 24-hour strike, the contingency cover that was put in place was barely adequate, and it would not be sufficient to cover a 48-hour strike-as a result, lives will be put at risk. Will the Prime Minister intervene to solve this dispute? Will he pay our coastguards a decent wage, or will he sit on his hands until lives are lost?

The Prime Minister: I will certainly look at the issue of contingency cover to see what is being provided in the event of this dispute. I would, even now, call on the people who are engaged in planning the dispute to cease this action. I think that it is very important that employers and employees get together to find a solution to these disputes. I must tell the hon. Gentleman that 1.5 million workers in the public sector have already signed, or are subject to, three-year pay agreements, including nurses, teachers, and those who work in the Department for Work and Pensions and in the Inland Revenue. Never before have we had three-year agreements during difficult times such as these, and I believe that there should be support for other groups of workers in the public sector signing up to long-term pay agreements.