Peter Hain’s Valedictory speech in the Commons

Speaking in the House of Commons today, Peter Hain gave his valedictory speech, his last act as a Member of Parliament.

The veteran politician and campaigner reflected on almost a quarter of a century in Westminster politics, paying tribute to his friends and family for the love and support which sustained him as an MP.

Joining in with other retiring Labour former cabinet members such as Gordon Brown & Jack Straw, the valedictory speeches followed an unusual and emotional day in the Commons.

You can read the full extract of Peter’s speech below:

Mr Peter Hain (Neath) (Lab): Mr Speaker, having served for 24 years, may I commend your role as in my view the greatest reforming Speaker in memory, by making the Commons immensely more user and citizen-friendly, and especially for the way in which you have enhanced Back-Bench influence? I thank all the Commons staff, including our excellent Serjeant at Arms and especially the Doorkeepers, with whom I have had a specially close relationship since I invited them in to share a few bottles of wine—South African wine—in the Leader of the Commons’ office.

I thank my constituents in Neath and Neath constituency Labour party for their tremendous loyalty and support. I was a Pretoria boy, but I am proud to have become a Neath man. When I first arrived I was shown into a local primary school, Godre’r Graig school in the Swansea valley: “This is a very important person to meet you, class.” A little boy in the front row put up his hand and asked, “Do you play rugby for Neath?” Clearly, he had his priorities right.

I have been privileged and fortunate to have the very best friend anybody could have in Howard Davies of Seven Sisters, what he calls God’s own country, in the Dulais valley in Neath. I first met him in February 1990, a former miner who was lodge secretary at Blaenant colliery during the heart-rending year-long strike in 1984-85. My first agent and office manager, Howard has always been completely loyal and supportive, but privately frank and direct—priceless virtues which I commend to anyone in national politics.

Having come from a world of radical protest and activism, I never expected to be a Minister for 12 years. It began when Alastair Campbell unexpectedly called and said, “Tony wants to make an honest man of you.” Some former comrades on the left were disparaging, but my response was, “I’ve never been an all-or-nothing person. I’m an all-or-something person.” I am proud of many of the achievements of our last Labour Government, some of which I helped a little with, including bringing peace to Northern Ireland and devolution to Wales.

However, there was a tabloid columnist who described me as the “second most boring member of the Cabinet”. My right hon. Friend the Member for Edinburgh South West (Mr Darling), the former Chancellor, came top. At least that was more civil than the editor of Sunday Express at the height of the anti-apartheid struggle, when I led campaigns to disrupt whites-only South African rugby and cricket tours. He said: “It would be a mercy for humanity if this unpleasant little creep were to fall into a sewage tank. Up to his ankles. Head first.” That was nothing compared with the letter bomb I received, fortunately with a technical fault in it, or being put on trial for conspiracy at the Old Bailey for disrupting South African sports tours, or being charged with a bank theft that I knew nothing about, which was later discovered to have been set up by South African agents.

Despite serving as an MP and Cabinet Minister, and remaining a Privy Councillor, I have not changed my belief that progressive change comes only through a combination of extra-parliamentary and parliamentary action. We know that from the struggles of the Chartists, the suffragettes, the early trade unionists, anti-apartheid protesters, the Anti-Nazi League and Unite Against Fascism activists confronting groups such as the National Front and the British National party, and Greenpeace activists inspiring fights against climate change.

If I am asked for advice by young people, who often ask me, “Can you tell me how to have a career in politics?” I say, “It’s not about a career; it’s about a mission.” We should never be in it for ourselves, but for our values. For me, these are equality, social justice, equal opportunities, liberty and democracy in a society based on mutual care and mutual support, not the selfishness and greed now so sadly disfiguring Britain. These values underpinned the anti-apartheid struggle and brought me into the Labour party nearly 40 years ago, but nothing I was able to achieve as an MP or a Minister was possible without the support of my family—my wife Elizabeth Haywood, a rock to me, my wonderful sister Sally, her daughter Connie, my sons Sam and Jake, and their mum, my former wife Pat.

Above all, I am grateful to my mother Adelaine and my father Walter, for their values, courage, integrity, morality and principle. My mum when in jail on her own listened to black prisoners screaming in pain. My dad was banned and then deprived of his job. They did extraordinary things, but as Nelson Mandela said, “What counts in life is not the mere fact that we have lived. It is what difference we have made to the lives of others.”

After 50 years in politics some might say it is time to put my feet up, but I have been lucky to have the best father in the world, and he told me in the mid-1960s when I was a teenager living in apartheid South Africa, “If political change was easy, it would have happened a long time ago. Stick there for the long haul.” That is exactly what I will continue to do after leaving this House.

Mr Speaker: I thank the right hon. Gentleman.

Greece & Austerity

Mr Peter Hain (Neath) (Lab): I endorse the Prime Minister’s welcome to our excellent new chief Clerk. I also welcome the fact, Mr Speaker, that you are proceeding speedily to the appointment of the post that will carry out the chief executive duties, the director general. That is very important.

On Greece, may I suggest to the Prime Minister that simply repeating the same dose of austerity on the Greek people and their Government will not achieve the objective any more than the last dose did? National debt went up in Greece as a result of the austerity programme. Of course, the Greek Government have to reform to collect their taxes and to get rid of corruption, and the Government have volunteered to do that, but going down the same austerity road is not going to revive the Greek economy or enable it to repay its debts. Those must be rescheduled and the reforms around that must ensure that Greece is capable of repaying its debts, not being strangled with austerity.

The Prime Minister: I do not entirely disagree with the right hon. Gentleman. The problem is, though, that the people who have lent the money to Greece want their money back, and they believe that Greece should carry out a series of reforms before they give it any more money. He or I can take a different view and argue as I would, although he would not, that Greece should never have joined the eurozone in the first place. That is not the right hon. Gentleman’s view because he is a fanatic about the eurozone. None the less, as we have not lent money to Greece, we are not in that position. If he had been at the European Council he would have heard, whether from the Germans, the Dutch and the Scandinavian countries, or from the Spanish, the Portuguese and the Irish, who have all been through these painful processes, that there is very little appetite to cut Greece a lot of slack.

How can Labour prove it’s not on the side of a small cabal in the Square Mile?

How the recent tax avoidance scandal shows that the softly softly approach won’t work, and we need a financial transaction tax.

Ed Miliband repeatedly challenged David Cameron at Prime Minister’s Questions recently to close a tax loophole that allows hedge funds and others to dodge the stamp duty they should pay on share transactions. Last week in parliament a report was launched by former senior banker Avinash Persaud which shows that by tightening such rules we can raise a potential additional £2bn year. In both cases the Conservatives have looked the other way. Perhaps it’s something to do with the Conservative party receiving a large wedge of their funding from the financial sector?

It fits a pattern. The government has bitterly fought European legislation designed to keep financial services in check; the ringfencing of investment and retail banking has been delayed until 2018, a decade too late; and no individuals have been convicted for their part in the crisis. The list goes on: an anaemic bank levy has raised little revenue; financial sector corporation tax receipts are dwindling and financial sector remuneration is so out of sync with the rest of the economy it took senior bankers just the first week of January to earn what the average Briton will take home for all of 2015.

Timidity towards the Stamp Duty (itself a very modest proposal) is thrown into even starker contrast when we consider what is happening across the channel. Eleven European countries, that in total make up around 70 per cent of European GDP, are going further – they’ve committed to a broader Financial Transaction Tax. Our stamp duty, which is set at a rate of 0.5 per cent, is paid every time a UK share is traded. As France’s President Hollande indicated earlier in the year, the European proposal will apply to shares, but crucially it will also apply to the colossal market of financial chicanery known as derivatives. Whilst the details are still to be hammered out this is likely to raise in excess of £10bn a year for participating countries.

This is not a policy preserve of the left – Germany is one of its biggest champions. Like us, they too have unfurled a wide-ranging austerity programme, yet with a quid pro quo: if the public are paying the price of the economic crisis they did little to cause, the financial sector must also pay its share.

Of course, some financial sector players are squealing in horror – but they would protest about a tax they’ll have to pay wouldn’t they? Indeed, we should be more concerned if they were silent. The truth about FTTs is more prosaic than critics suggest. Many moderate variations of the tax have already been successfully implemented around the globe. Most have been implemented unilaterally without unduly impacting on markets, putting paid to the idea they must be global to work. The UK’s stamp duty provides the blueprint – it captures share trades wherever in the world they take place, since without it, legal title will not be transferred to the new owner. This is so effective, 40 per cent of its revenue comes from overseas counter-parties.

Closing the stamp duty loopholes could raise us £2bn a year in extra revenue – this offers a real chance for Labour to put itself on the side of the majority of the electorate and not on the side of a small cabal in the Square Mile. But the real prize comes in extending the stamp duty to a fully-fledged FTT that covers derivatives and other financial asset classes, as they are doing on the European mainland. Labour shouldn’t get bogged down in old arguments about waiting for the United States to join the proposal – not now it’s happening on our doorstep. We should act.

As I set out in my new book, the FTT isn’t a panacea, and must sit alongside other measures such as reforms to inheritance tax and a higher rate of VAT on luxury goods. What it is though, is a moderate, credible and proven revenue raiser that will also curb some of the sector’s most odious practices such as high-frequency trading that deliver little social value.

It’s time we learnt the lessons of history: a softly softly approach to the financial sector does not work.

Motability & Personal Independence Payments

Mr Peter Hain (Neath) (Lab): The Motability car that my severely disabled constituent, Mark Francis, has had for 11 years is being taken from him in two weeks. Born with hereditary spastic paraplegia and unable to walk without crutches or sticks, he is sadly deteriorating by the week. I have been told that his case will be reconsidered, yet the Department for Work and Pensions is punitively and callously snatching his car from him on 25 February. Will the Prime Minister immediately rectify that heartless and disgraceful injustice?

The Prime Minister: As ever, I am very happy to look at the individual case raised by the right hon. Gentleman. Of course, with the replacement of disability living allowance with the personal independence payment, the most disabled people will be getting more money and more assistance, rather than less, but as I say, I will happily look at the case.

Hain blasts slowest economic recovery since records began

Anti-austerity champion Peter Hain has launched a stinging attack on Chancellor George Osborne as figures reveal Britain is struggling through the slowest economic recovery on record.

Data compiled by the Trade Union Congress shows that the British economy has typically grown in size by 16.1% in the first five years after recession – however under George Osborne that number has struggled to reach 8.8%.

This news compounds the Tories economic woes as in January it was revealed that over one quarter of Wales’ working age population is economically inactive.

The Neath MP said, “We have to recognise the utter folly promoted by George Osborne and his Tory austerity addicts. Britain desperately needs growth and their cuts jeopardise the country’s economic security.”

Mr Hain continued: “Between 2010 & 2012 the government made a number of disastrous decisions which seriously harmed the public investment led recovery the last Labour government had started.”

“As the TUC’s research shows, the strongest recovery on record occurred after the Great Depression, when massive public investment helped create jobs, tax receipts and growth.”

In the last quarter of 2014 Britain’s economy grew by just half of a percentage point, much lower than estimates from the Office of Budget Responsibility and City of London had expected, while Britain’s growth prospects for 2015 have also been revised down to just 2.4% in total, after the OBR had initially confidently predicted growth of 3%.

Fears are growing of another recession in Britain as economic indicators are suggesting a general slowdown. Employment in Wales fell by 40,000 over the year from January 2014.

“A vote for a Tory is a vote for economic lunacy in the upcoming election”, said Mr Hain, as he urged Welsh voters to defy the neo-liberal orthodoxy that drastic cuts would balance the British economy.

A graph by the TUC details the average growth of the British economy in the five years after a recession.