[inaudible conversations] >> now to london for prime minister's question time live from the british house of commons. every wednesday while parliament is in session prime minister david cameron takes questions from the house of commons. prior to question time the house was wrapping up other business. this is live coverage on c-span2. >> the hon. lady, we are clearing up the mess of labour left behind and we will take absolutely no lessons from her or the party. we have -- we have restored earnings and they refused to. we helped millions of scottish

with very difficult times. they were planning the opposite. we take no lessons from labor how to manage the economy. >> order! questions for the prime minister. >> the prime minister and the rest of this house, a positive and happy new year. >> thank you, mr. speaker. i have meetings with ministerial colleagues and others and in addition to this house i have further such meetings later today. >> my right hon. friend, public service for having a pay raise and is only fair to soak on benefits should be given the same. >> i think my hon. friend is right. these are difficult decisions that we have to make but they should be made in the context that over the last five years benefits have gone up by 20% but average earnings are only up by 10% so it is fair and right to

have up 1% cap on out of work benefits and 1% cap on taxpayers and the 1% cap on public pay. what i think his inexplicable which is the position of the party opposite to support in 1% public debt to pay cap but want more for welker claimants. that is not fair or right and they should think again. >> mr. speaker, can the prime minister tell us why on monday when he published his midterm review he failed to publish his thought of coalition's broken promises? >> we will be publishing absolutely every single audit of every product. this will be full and frank and

unvarnished this afternoon. let me remind him that we said we would cut the deficit in did is down by 25%. we said we would cut immigration and it is down by 25%. we said we would balance the economy, 1 million private-sector jobs. that is a record to be proud of. >> he has to do better than that. because -- because this is what his adviser says. he said asia and publish the secret order because as problematic areas it would lead to unfavorable copy and identify broken clinches. >> it is a far cry from the rose garden because this is what they said. we should throw open the door to enable the public to account. have another go. it is the simple question.

was it his decision not to publish the audit, from his adviser, it would overshadow favorable coverage? >> order! calm down! >> early in the year -- calm down. calm down. these are difficult times ahead. it is his decision not to publish the audit. it is my decision is being published this afternoon. is this really the best he can do? he had a week in the canary islands with nothing else to think of. he does not ask about unemployment because it is falling or business creation because it is rising. he doesn't want to talk about the deficit because we got it down. he can't ask about welfare because he knows he is on the wrong side of the argument.

>> mr. speaker, mr. speaker, the only people on the wrong side of the argument are him and his chancellors trying to divide the country. let's see if we can get a sneak preview of the secret of audit. we haven't seen it, get a sneak preview. this is what the coalition agreement says. it said, quote, we will stop top-down reorganization of the n h s. that is a direct quote. i think we can all agree that is a promise that has been broken. having confirmed that -- what will be there -- 5,000 more jobs, 6,000 real managers. will the right hon. gentleman talked about wanting to divide the country, the division is this. two parties that have come

together to take a different decision and one party that refuses to apologize for the past, refuses to talk about the deficit, has no economic policy to speak of. that is the division in british politics today. >> i have to say that if he can't even admit about his broken promise on a top-down reorganization of the any chess i don't have high hopes for the speaker. let's talk about another broken promise, this time on women. he says this. in his usual modest way he said this. he said we want to make sexual inequality history. that means a big commitment, a serious commitment, clear policies and clear leadership. will there be another broken promise a tax and benefit changes he is making are making women -- come down a bit too.

will he admit the tax incentive changes he is making are hitting women -- >> the questions must be heard and the answers from a prime minister must be heard. >> you will be able to speak when the document is published. there are more women at work than at any time in our history. pension reforms are helping women, public sector pay freeze which excludes the lowest paid is helping women and we are helping women with extra child-care. but mr. speaker, what a contrast between a government that is prepared to publish every piece of information and the party opposite cannot even apologize

for the mess they left this country in. >> after that answer is no wonder he didn't take questions from women journalists at a press conference. let's turn to his biggest broken promise of all. the chancellor, hard-working people and the most honorable, at the same time he is giving this april a massive tax cut to millionaires. a candid assessment, won't you have to admit that he has broken that symbolic promise that we are all in this together? >> he knows the facts about the top rated tax, millionaires pay $7 billion less in taxes than they did previously and the fact is under this government top rate of tax will be higher in every year than any year under his government. when he talks about promises,

let's have a little awe of his promises. he promised us a fully cost deficit-reduction program, nothing. he promised us proper reforms of welfare, nothing. he promised us he would show how he would have a new policy, nothing. i have audited all of the government spending programs and i have identified one where the waste is simply appalling. it is five million pounds of short money that goes to his party every year and we get nothing from it. mr. speaker--mr. speaker -- >> the more he reads and blusters the less convincing he is. he is cutting the top rate of income tax by an average of 107,000 pounds for everyone earning over 1 million pounds in britain at the same time he is raising taxes on everyone else.

what do we know of this week? he is a pr man who can't even do -- we know that incompetence break their promises and the nasty party is back. it is perfectly clear, mr. speaker, what has happened since the start of this year, increased government setting out its plans for the future, it is his party that is an all wrong side of the argument on welfare, has nothing to say about the deficit, has no credible policy on the economy, he has a shadow chancellor he won't back but can't sack. nothing strange in politics and nothing has changed in labor. >> thank you, mr. speaker. to my right hon. friend agree with me, cutting taxes for hard-working people -- rather than taking money away from them and return their own money from tax credits. >> my hon. friend is entirely

right. he will know in april every working family will see a 220 pound tax cuts as we lived the tax threshold yet further. everyone will benefit from that and in our view what we should be doing is cutting people's taxes rather than taking more in taxes and recycling it through the tax credit business. that is what we believe on this side of the house and what we will work for working families. >> a clear example how this out of touch prime minister is, the overwhelming majority of the public work to maintain the -- he actually plans to repeal it. can you tell us why? >> as i explained before prop. christmas i never broke the law. in this house -- [talking over each other] >> the prime minister accept that under this -- >> order! order! i am sure the house wishes to

hear the words of mr. andrew l so solu. >> does the prime minister expect under this government we brought in an 11% rise in the tax credit followed by a 5% rise and recent rises build on those meaning a tax increase of 470 pounds and d tax credit under this government? >> my hon. friend makes a point about how we focus help on those most in need but also make the point because we have lifted the income-tax threshold someone on minimum-wage who works full time has seen their income tax bill cut in half under this government. we are on the side of those who want to work hard and provide for their families. >> there are more than a million children who do not qualify for preschool meal, several children's charities are concerned that number will increase when the universal credit is introduced.

will the prime minister allay their fears by giving a clear guarantee that any child who qualifies for preschool under the current rules will keep that when the rules are changed? >> i look carefully what he said about 3 school meals. let me make a point that universal credit will be extending help to more people and more families because it is helping those people who are only able to work a few hours a week and helping them with child care as well. >> mr. speaker, the prime minister running over christmas and setting the pace on welfare reform. i have been out of training for the london marathon to raise funds for my local forget me not children's hospice. will my friend join me in praising all the fund-raisers and volunteers for local hospices and reaffirmed government reports gained by the capital fund which my locals are applying for. >> i wish my hon. friend every

good luck for the london marathon. that is far more than i am capable of. we are continuing to support children's hospices by carrying on with ten million pound funding and we have added an additional 720,000 pounds and making sixty million pounds of capital funding available to adults and children hospices and crucially in the coalition agreement which will be published later today we're talking about how to fulfill our pledge for patient funding system for college care which will help all children's hospices if they do important work for the country. >> keith powell. >> will the prime minister confirm that my constituency, he will work all the hours he can to gain from the new tax allowances will after he changes the tax credit and universal credit be 1,255 pounds a year worth? >> the point i make to the hon.

lady is everybody is affected by these changes. everyone on tax credit will be affected by the fact that there's only a 1% increase. everyone on out-of-work benefits will be affected by 1% increase but the fact we have to ask ourselves, if we are saving five billion pounds through these changes which i believe our fair how is it the party opposite would have this five billion pound black hole? would you take a of of the an age as? the defense budget? time to ask questions of the party opposite. >> can i think the coalition government for allocating 10.7 million pounds to edinburgh -- this will revolutionize the internet using parts of my constituency. unfortunately my constituents, yearlong process, what can he do to speed up that process?

>> it is important everyone has access to broadband and we have the overwhelming access, i suspect attenborough city council has seen some of the same problems up and down the country seeing st. aid clearance. we have that state aid clearance for broadband and i am happy to look at the situation in edinburgh but that is one of the problems holding back the program. >> you should and have to fill in longer forms from the revenue, you need help, we want to help you. so mr. speaker, the prime minister recognizes his words for child benefits. how many families could face a fine for not filling out a long tax form? >> the point about the benefit change is that 85% of families who receive child benefit will go on getting that benefit and the question we all have to ask, is it right for people earning

20,000 or 30,000 to go on giving benefits to people earning 7,090,000. we don't believe it is right. the labor party thinks is right to give child benefits to millionaires. we don't think that is a good use of money. >> thank you, my right hon. friend of prime minister recognizes there needs to be a new relationship between his country and the european union and he has said and i and read the british people must be offered a real police with regard to our continued membership. confirm the house that it is his intention to pick up a fresh settlement and the consent of the british people to that settlement. >> i can't confirm that. that is what i believe this country should do. it is the right thing for britain because it is right that we are involved in a single market, we are active players in the european union but there are changes we would like a relationship that will be good for britain and for europe and because of the changes taking place in the euro zone which is

driving a lot of the change in the european union that every opportunity to achieve that settlements and seek consent for it. >> mr. speaker, you like foreign travel, trade delegations, meeting for leaders, but he is not too keen on the detailed policies. does the prime minister know anybody else like that? >> all morning for that -- it is important that we have ministers in both houses who are linking up with the fastest growing country anywhere in the world. that is why exports to china are up 50%, exports to india are up 50% and we are connecting britain with other parts of the world.

>> bearing in mind bills which are thought to affect the royal prerogative require the signification of the queen at second reading, can the prime minister tell us whether he has yet heard whether it regards any of the major constitutional changes proposed in successions of the crowd bill as in fruiting either on the royal prerogative for the coronation of which are majesty talked? >> what i can say to my right hon. friend is throughout the process, bringing forward this proposal which of course is a proposal that the heads of all

the commonwealth dominion rales have also signed up to throughout that process has been very thorough contact between number 10 downing street and the palace and all of the issues are settled and agreed. >> alan white head. >> high flood risk areas, i don't understand why the government has effectively abandoned efforts to reach agreement with the british insurance industry on the future insurance for their homes and not be able to insure their homes after june of 2013. why is the prime minister fiddling while the country floods? >> i am happy to be honored general -- hon. gentleman right. discussions are still underway. they made progress and i am confident we will reach an agreement. the current agreement doesn't run out until june of this year. i regularly updated how those discussions are going. i know from my own constituency which is subject to regular flooding how important they are and also add to the hon. gentleman that we put in an

extra 1 twenty million pounds in terms of flood defenses. everyone can see a flood defense work that is done over recent years has a significant difference when we have had high levels of rainfall and i water in rivers and streams. >> confirm to the house the disability benefit, and will not be subject to changes. >> since my hon. friend is right, disability living allowance which is the key benefit received by people who are disabled is not subject to the 1% cap, it is for benefits that are for people in the in work benefits. very important we go on disability living allowance. >> can the prime minister confirm my constituents as well as a single father with children will lose 400 pounds a year as a result of the chancellor's cut to child benefits. >> the result of the cut to

child benefits are the best of 15% families in this country will no longer receive child benefit at all. that is what is going to happen. at that stage around two billion pounds a year and labor has voted against $80 billion of welfare changes. filling in the blanks of where you're going to make up this money, it is right that we say to people earning 80,000 pounds or more you shouldn't be receiving child benefits. it is not an easy decision. the government is about making decisions and opposition of that making decisions too. >> can i recommend the prime minister take a look at monday's debate on corporate tax avoidance and can i ask what he hopes to achieve on this frightful issue at the g-8? >> i will look closely at the debate and this is a vital issue for not just our country but it

needs to be settled internationally. that is why a good issue of corporate tax avoidance at the heart of the g-8 this year and also looking closely at what ever else we can do in the u.k.. >> further to the question for my hon. friend, may i ask the prime minister what estimate he has made for a number of families who are still unaware that they are no longer entitled to child benefits particularly bearing in mind that the bill for the first four year's charges will come through the nation's letterboxes in april, 1915. >> obviously we have written out 800,000 families, a huge advertising campaign that was properly covered across the media but i have to say it is absolutely extraordinary in a week when labor are complaining about difficult welfare decisions for people who are in work or people who are out of

work. they also ought to make a priority of opposing taking away child benefits from people earning 150,000 pounds. you have really got to start taking some responsible decisions about how we deal with our deficit and get our economy under control. >> nigel adamas. >> will the prime minister join me in congratulating the entrepreneurs and staff who work at the job center in my constituency over the last 2-1/2 years have ensured that unemployment is down by a quarter since the last election? >> i will certainly join my hon. friend. people in our jobs and is up and down the country do an excellent job helping people to find work and make sure they get all the help they need and the fact is the unemployment rate today is lower than the rate we inherited at the last election. over the last year job creation in britain was faster is and any

other g-7 country but we have a long way to go to rebalance our economy and get growth in the private sector that we need but we are on the right track. 1 million private-sector jobs over the last two years, the fastest rate of new business creation for decades. good signs the economy is balancing. we need to encourage that by staying on top of our deficit and getting the deficit down rather than giving in on every decision as we have seen today from the labor party. >> according to the children's society, 40,000 soldiers, 60,000 teachers and 300,000 nurses will lose out with a result of decisions to cut tax credit and other benefits. why are hard-working people like this paying for his economic failure? >> hon. lady needs to remember why we are having to take these decisions in the first place. is to deal with record budget deficit by the labor party.

that is the background of this. the real question, the real question about public sector workers, soldiers, teachers, people who work in public services are being restricted to a 1% increase. why on earth does the labor party think people on after work benefits should see their incomes go up faster? that is the question you have to answer. we are being fair because we are restricting the increase on tax credits, restricting the increase on public sector pay but also asking the same of those on welfare. what we do is completely unfair, batting the public sector pay increase for wanting welfare to go through the roof. is completely wrong. is not fair and labor must see they have got to change their minds. >> thank you. last week i visited the teenage white group in dubai, recruiting sounds for 2013. however like many british employers they cannot find enough engineers to hire.

britain's universities lead the world in teaching science and engineering and yet we have an annual shortfall of 60,000 graduates and nine of ten post graduate students in those subjects are from overseas. what more can we do? >> my hon. friend is entirely right and we need to tackle this problem at every level, making sure we are teaching math and science and stem subject probably and there are signs the number of people taking those subjects are increasing. we need to make sure our universities are properly funded and make sure that is the case but we also need to raise the profile about engineering and that is one of the reasons we introduced the 1 million pound prize, for engineering. that combined with 34 university technologies will make sure we train engineers we need for the future. >> it is more important than ever in northern ireland that we continue moving forward away

from violence and create stability and i am sure the prime minister will agree to me that food participation and support for the political and democratic process by everybody so people's issues can be addressed and politicians address those issues are absolutely vital. in the context of what is happening will prime minister agreed to meet with us to discuss the forthcoming legislation in northern ireland so we can look at measures that increase democratic participation by people in the communities, look at the a lot borrow register in northern ireland which -- deal with discrimination against elected members of the house of northern ireland to flavor the rules while others get money while not taking their seats. all of that needs to be addressed to meet when -- >> i have a meeting with a number of parties straight after prime minister's questions to talk about how to make sure the military covenanters properly fulfilled in northern ireland. make a number of points. i would throw back part of the

challenge to him and his party just as i would to others in other parties, we need to build a shared future in northern ireland where we break down the barriers, barriers of segregation that have been in place for many years and that is part of the challenge to take away some of the tensions we have seen recent days. >> just in case anybody was in doubt, can the prime minister confirm who is closest to politically? is it the deputy prime minister? >> i managed to get through christmas without spending any time with either of them. [laughter] >> i am closer to all conservatives than i am to anyone in any other party. >> thank you, mr. speaker. yesterday the s