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Michael Foster’s Parliamentary Bulletin

It’s that time again and there’s a lot to talk about in what’s been a quite extraordinary month on the global stage.

We’ve also had the political party conference season which I believe has given a much clearer idea of where Gordon Brown and Labour intend to take Britain over the coming months and years. An accusation often levelled at the parties is that they increasingly cluster on the centre ground but I believe the past couple of weeks have highlighted a clear divergence. But I’ll come onto that in a minute, firstly I want to talk about the tumultuous state of affairs in international finance.

It’s the Global Economy Stupid

Firstly I want to emphasise the point the current market chaos we are seeing is in no way some kind of ‘new depression’ as some of the more shrill commentators have been trying to suggest. 

However, we are in the midst of a banking crisis that must be addressed and turned around as soon as possible. The problems we are seeing all across the globe originate in the American sub-prime mortgage market. We have no way to directly influence this market or the toxic debts on the books of many of the world’s largest banking institutions. What really matters now is how we respond to these international challenges.

It is clear regulatory structures need reforming - many UK based banks were dabbling in the US sub-prime market and kept their activities off the balance sheet. That irresponsibility cannot be excused and we must act to ensure it cannot happen again.

But we also need to maintain top quality public service provision. The other parties are calling for expenditure cuts. I totally disagree – it is now, in the hard times, when public services are really needed. It is the most vulnerable in society who are hit hardest and it is with them in mind that we must act.

There is still a bumpy ride ahead for the economy and 10 years at the treasury overseeing the longest sustained boom in British history means Gordon Brown is uniquely qualified to respond to the economic instability we currently face.

Many people have questioned whether the banks should be bailed out at all. I agree it is tremendously frustrating to see the US considering a 0billion bail out of Wall Street incompetence but quite simply banking and the finance industry is tied into everything in the wider economy. To allow wide spread failure would undermine confidence and do great damage to the economy – we cannot allow that to happen and for that reason I hope the bail out is approved in the US congress.

Tis the Season

Not Christmas (although, shockingly, the shop across the road from my office has their decorations up already) but rather the Party Conference season. I was in the auditorium as Gordon Brown gave his speech and I hope you share my excitement at the vision he laid out. I’ve written a longer article on this matter which you can read by clicking here.

His vision of the party and what we should be doing for Britain is encapsulated in one word – fairness. I absolutely share that view – that equality is paramount in society - equality of education, equality of healthcare, opportunity, standard of living and so on. Fairness through ground breaking measures like the minimum wage, tax credits and pension credit. The simple idea that everyone is entitled to a fair crack of the whip irrespective of where they were born, who their parents happen to be or how rich they are.

That principle is what we shall continue to strive for. On Wednesday 1^st October the minimum wage will increase again (to £5.73/hr) and the plans Gordon set out for extended free childcare and free internet for disadvantaged youngsters are bold steps that will help increase opportunity and social mobility.

I also think the conference season has seen clear space emerge between the parties. I want to contrast the Labour fairness agenda with the headline grabber from the other two conferences: tax cuts – Income Tax (Lib Dems) and Council Tax (Tories). It’s an appealing idea but basically nothing more than rehashed Tory policy from years gone by that translates as cuts to public services.

If that is what they intend fine but they should tell us what they would cut – rubbish collections? Concessionary bus travel for pensioners? Police? NHS? What?

You cannot spend less and get more. You cannot have your cake and eat it.

Now more than ever, considering the global economic turmoil, cutting public spending would be a double blow to those most in need. We cannot directly change global financial circumstances but our objective must be to protect the most vulnerable in society from the worst effects of the current economic instability.

Free Broadband Connections for Disadvantaged Children

I think this is a great idea. We are a ‘tech society’ and it’s going to be hard for youngsters who aren’t internet savvy to get good jobs. This scheme will provide £700 of vouchers for children from low income backgrounds to purchase a broadband connection, computer, software and the necessary technical support.

This will hopefully prove to be a great technological boost for kids in Hastings and Rye.

Free Nursery Places for Toddlers

Every two year old is to get a free nursery place under £1billion plans announced by Gordon Brown to help parents return to the workplace.

I think this will be a huge help to many parents who want to get back to work but struggle to find the money for childcare. However, I hope the scheme can be extended in some way to support those parents who choose to stay at home. Children benefit from having their parents at home during their formative years so if parents choose to remain at home we should try to support them in that.

Health Minister in Town

Alan Johnson, the Secretary of State for Health, was in town last Monday to visit St Michael’s Hospice and the new extension that was built using £380,000 of Government funding. St Michael’s is a marvellous organisation of which we should all be proud – they do a great job.

Alan is an extremely capable Minister who has steered the NHS with a steady hand over the past year but he is also a charming individual and I know the staff enjoyed having him there.

Well, I seem to have written quite a lot and I feel I should curtail my typing at this point.

If you want any more information on any of the stories above (and lots of other issues) check out my website www.michaelfoster.org.uk or get in touch with me by emailing mp@1066.net or calling 01424 460070.

Best wishes

Michael Foster DL MP