Prime Minister David Cameron gives keynote speech in Eastburn (From Craven Herald)

Prime Minister David Cameron gives keynote speech in Eastburn

4:39pm Thursday 7th March 2013 in News

Tory MP Kris Hopkins has praised the Prime Minister for choosing Eastburn in which to deliver “a strong message on the economy”.
David Cameron gave a speech at lunchtime today at precision engineering firm Cinetic Landis.
Mr Hopkins, the Keighley MP, said: “I think it is appropriate that David Cameron chose such a magnificent company in Cinetic Landis as the venue for this hugely significant speech on the Government’s economic strategy.
“There is a clear plan in place to rescue our economy from the deep hole it was thrown into after 13 years of wasteful Labour Government.
“The period since May 2010 has not been easy, particularly in a constituency like mine, where people have lost their jobs and incomes for many have fallen.
“But, as the Prime Minister said, there are clear signs that much better times are ahead.
“New jobs and apprenticeships are being created, the gaping budget deficit the Coalition Government inherited has been reduced by a quarter and retail sales are on the up.
“It would be foolhardy and reckless, after the tough decisions that have had to be taken and the pain that has had to be endured, to now throw away the prize of long-term economic prosperity in favour of short-term political gain, as suggested by Labour..
“Labour has argued for a quick fix by borrowing more money and increasing our nation’s debt still further.
“But whilst that might help to win more votes at the polls, it would be irresponsible and the wrong thing to do for our country.
“As the Prime Minister has made clear today, we must hold our nerve, stick to the plan and ensure our economy is put back on track for the benefit of all.”
In his pre-Budget speech, Mr Cameron said there was no "magic money tree" that allowed the Government to spend and borrow more.
"There are some people who think we don't have to take all these tough decisions to deal with our debts," he said.
"They say that our focus on deficit reduction is damaging growth. And what we need to do is to spend more and borrow more.
"It's as if they think there's some magic money tree. Well, let me tell you a plain truth: there isn't."
The premier said the loss of the UK's prized AAA credit rating last month had been "the starkest possible reminder of the debt problem we face".
"If we don't deal with it, interest rates will rise, homes will be repossessed and businesses will go bust, and more and more taxpayers' money will be spent just paying off the interest on our debts.
"Even just a one per cent rise in mortgage interest rates would cost the average family £1,000 in extra debt service payments.
"So, there's not some choice between dealing with our debts and planning for growth."
Mr Cameron said the Office for Budget Responsibility (OBR) had made clear the financial crisis, eurozone woes and high oil prices were largely to blame for the economy stalling.
"Tackling the deficit is the first essential step for growth. And if we don't do it, we'll end up facing even greater austerity," he said.
"So, those who think we can afford to slow down the rate of fiscal consolidation by borrowing and spending more are jeopardising the nation's finances, and they are putting at risk the livelihoods of families up and down the country."
Mr Cameron said the Government was not "laissez-faire", highlighting the Bank of England's Funding for Lending scheme and Treasury guarantees for infrastructure projects.
He said ministers were determined to back industrial sectors where Britain has a "global comparative advantage".
The Prime Minister said he was ready to "fight for" measures to improve competitiveness, such as planning reform, road building and high speed rail.
He argued there were "signs that our plan is beginning to work", with jobs being created and the economy rebalancing.
"Of course, these signs of progress are just the beginning of a long, hard road to a better Britain," he said.
"But the very moment when we're just getting some signs that we can turn our economy round and make our country a success is the very moment to hold firm to the path we have set."
He added: "This month's Budget will be about sticking to the course, because there is no alternative that can secure our country's future."
The premier went on: "I know some people think it is being stubborn to stick to a plan, that somehow this is just about making the numbers add up with no care whatsoever for what it means for people affected by the changes we make.
"But nothing could be further from the truth.
"My motives for sticking to the plan are exactly about doing the right thing to help families and business up and down the country."
Mr Cameron's visit to West Yorkshire coincided with an announcement by BT that it is creating more than 1,000 engineering jobs in its Openreach business.
Asked about Mr Cable's intervention, he said: "The article he wrote in the New Statesman was cleared and approved by the Treasury.
"He backs the measures we are taking on dealing with the budget deficit and also he is playing a very key role in making sure we deliver this agenda of backing the fastest growing areas of our economy that have real potential for the future.
"I work very closely with him in doing that."