Richard Spring MP
Member of Parliament for West Suffolk

As it is so clear we are descending rapidly into a serious recession, I can only refer back to the plight of small businesses which are grievously suffering. Banks are now reluctant to lend because they fear some small businesses will go under.
 

Last week I raised the matter of the availability of European Investment Bank funding with the Prime Minister on the floor of the House of Commons.
 

Today I asked the Chancellor about banks that are now turning overdrafts into business loans with even higher interest rates. This is as a result of a lack of liquidity in the banking system and the overall lack of confidence.
 

For all the assurances I received from the Prime Minister and the Chancellor of the Exchequer , it now transpires that compared with the French - who have acted swiftly to ensure that the first tranche of EIB funds has already been accessed – we have been far too slow.
 

Apart from anything else, this government will be remembered for its sheer functional incompetence. This is another example of this deep seated characteristic and it is costing us dear, as our small businesses suffer, for all the government rhetoric about help being on offer.  

As a governor of the Westminster Foundation for Democracy we try to encourage democracy and parliamentary capacity building abroad. This is sometimes done for a particular region, or particular country on a party to party basis. 

When I was first asked to get involved in the Maldives I was somewhat unconvinced as it is of course a highly successful tropical holiday destination. However as I learnt more, I realised that the situation was much more complex. 

For over 30 years one person, Maumoon Abdul Gayoom, has ruled over the country. He certainly oversaw economic progress, but had a habit of sending opposition politicians and supporters to jail with some regularity. However he did decide that open elections could take place, and confidently expected to win. 

The Conservative Party supported the opposition party, the Maldivian Democratic Party, led by Mohamed Nasheed (Anni). We committed a substantial amount of time and energy to help to develop organisational structures and training programmes. 

Yesterday Anni won and Maumoon Abdul Gayoom graciously conceded, despite fears that he would refuse to do so. 

When a country, no matter how small, moves to becoming a democracy it is certainly a moment when we should all rejoice. I am so happy to have played a very small part in this victory. 

Of course considerable challenges lie ahead, particularly with the expected downturn in tourism, but whatever happens the Maldives will in future be led by someone who was elected by the Maldivian people in a free and fair process. 

The very last thing that politicians should do is pontificate about anything, given that we rank in public esteem down there with journalists and estate agents. However it was ever thus, in the long history of the Commons. 

I remember that when I was lucky enough to get a place at Cambridge, the Master of the College welcomed us by saying that from the perspective of the long existence of the College, nothing was new or shocking. Indeed today in Parliament, there are fewer ‘characters’ than in previous generations. MPs drink much less and behaviour offensive to women MPs has pretty well disappeared. Dennis Skinner’s asides are often only funny because they are not. The Speaker expels MPs very infrequently for unparliamentary behaviour. 

I write this because the antics of Messrs Ross and Brand have been widely commented upon by Parliamentarians, even if for obvious reasons rather quietly. A Labour colleague today asked me whether his feeling of revulsion was a by-product of middle age. 

Wall Street bankers, with their over inflated salaries and egos, were once called Masters of the Universe. But this episode suggests to me that the two gentlemen in question have exactly the same characteristics. We wait to see to what extent BBC governors and management agree. 

This morning Conservative City Circle hosted a breakfast in a new series called “Meet the Editor.” There were 50 people present to hear a really outstanding speech by Matthew d’Ancona, editor of the Spectator.
 

The Spectator is a must read each week for anybody interested in politics and is certainly obligatory reading for any Conservative MP. It also contains columns that are hugely entertaining and not essentially political.
 

It always amazes me how widely read it is by Anglophiles in different parts of the world, anxious to keep in touch with politics here.
 

As Matt pointed out, if we take into account PFI, Network Rail and other off-sheet items, our debt situation is truly horrific. The reality of this needs to be confronted at some stage soon, as it is not a sustainable situation.
 
The grotesque profligacy of Gordon Brown means that we shall be bequeathing to future generations a debt burden of horrific proportions. Just as the Conservative Party has in the past inherited a financial nightmare from Labour, this immense black hole is what any incoming Conservative government will have to deal with.
 

The reality of what we are bequeathing to our children and grandchildren is something that needs to be brought home to the British people, who are largely still unaware of the level of debt which has been amassed.
 

However, that is certainly something that was completely understood by everyone present this morning.   

You couldn’t quite make it up. On today of all days we discover that the Americans have gone into Syrian territory, and a number of individuals were killed.
 

The Syrians believe it is impossible to prevent people crossing the Syria - Iraq border, and indeed point out that there are no coalition troops trying to stop this anyway. Of course the Americans disagree and believe that these individuals are undermining their efforts in Iraq.
 

Syria has been at the receiving end of much U.S. opprobrium, despite repeated attempts to talk to the Americans by the Syrians. For years British policy towards Syria has been influenced by American attitudes. Today, however, the Syrian Foreign Minister  Walid al-Muallem will be in London, formally invited by the Government.
 

What changes will there be in the U.S. foreign policy, especially if Barack Obama becomes President? Will he try to engage directly with Iran? In the end, with the help of China, the Americans were forced into a formal dialogue with North Korea after all. Problems in Iraq, Afghanistan, Pakistan and relations with Russia will all be in the new President’s in-tray.
 

In Israel there is a lively debate about whether and how to engage with Syria. Turkey has acted as a go-between in talks between the two countries. Yet deep suspicion remains. Many think it is important for Israel to attempt to disconnect Syria from Iran, and unlikely relationship anyway between a constitutionally secular and constitutionally theocratic society. An agreement between Israel and Syria would certainly have an impact on Hamas and Hezbollah too. Much to many observers’ surprise, Syria is exchanging ambassadors with Lebanon, and has offered to do the same with Israel. However Israel currently has no Government.
 

So the visit today is important. Ultimately there can be no resolution of the seemingly intractable problems of the Middle East without Syrian involvement. So isolating Syria diplomatically and retaining a boycott is counter-productive.
 

At least this is understood in London now, if not in Washington yet.

On Wednesday, Charles Clarke and I met the new Secretary of State for Transport, Geoff Hoon, to discuss the final stage of dualling the A11 - one of the most treacherous and congested roads in the country.
 

Having had positive meetings with his predecessor Ruth Kelly, I was keen to brief the incoming Secretary of State on the case for completing the dualling of the A11 as soon as possible and to reflect the very strong support in the region for the building work to be commenced in 2010.
 

I invited the Secretary of State to visit the A11 in person to see for himself just how vital the dualling is.
 

There is now a very lively campaign of support for the dualling. Next month a petition of more than 14,000 names will be handed in to the Department for Transport. The vast number of people who have signed this petition reflects just how important this issue is to local people.
 

The Draft Orders together with an Environmental Statement are due to be published by the Highways Agency early next month. Following this there will be a 13 week objection period.
 

I was encouraged by what Geoff Hoon had to say and I am encouraged that he will now move this scheme forward. After all, the Government is promoting infrastructure expenditure.
 

 The people of Suffolk and Norfolk have been waiting 30 years for this to happen. It is appalling that the road has not yet been dualled. I can only hope that our meeting will really move the matter forward.
 

Far too many people have lost their lives on this death-trap of a road.

We were shocked to find out recently that small businesses are being charged a 15.8% interest rate on their overdrafts by banks.

In recent times small businesses have become more and more dependent on overdraft facilities. Because of risk aversion and illiquidity in the banking system, small businesses have seen huge increases in interest rates charged.

Somebody who has been doing some work for me at home in London told me last week that she had been called in by her bank manager about her £5,000 overdraft. The meeting would be actually to withdraw her overdraft facility although her business is still doing reasonably well.

She did indeed see her bank manager and her £5,000 overdraft was changed to a £1,000 overdraft with the rest being offered as a business loan. The result is that she is being charged 17.54% - a margin of 13.04% over the current base rate.

For thousands of small businesses up and down the country these interest rates are unsustainable. If these rates of interest continue we will see a bloodbath in the small business sector. 

It is all very well for the government to talk about trying to help but the evidence so far is depressing.

How deep will the economic downturn be? As City AM reported yesterday, the transportation of raw materials is monitored by 26 shipping routes and is a good indicator of trade flows and future economic activity. It has collapsed by 88% since May. Much of this is to do with the weaker export picture from China.

Does anyone remember that Labour song ‘Things can only get better?’

Indeed.

Now of course we are all increasingly dependent on our mobile telephones which are a central part of modern life.

Did you know that mobile telephone operators have a Code of Best Practice to ensure transparency in erecting mobile phone networks, to provide more information to the public and local planners and to boost the community’s role in the siting of radio base stations?

It promises;

• IMPROVED CONSULTATIONS WITH COMMUNITIES
  
• DETAILED CONSULTATION WITH PLANNERS
  
• SITE SHARING
  
• WORKSHOPS FOR COUNCILS
  
• DATABASE OF BASE STATION SITES
  
• COMPLIANCE WITH ICNIRP PUBLIC EXPOSURE LEVELS GUIDANCE
  
• ICNIRP CERTIFICATION
  
• PROMPT RESPONSES TO ENQUIRIES
  
• SUPPORT RESEARCH INTO HEALTH AND MOBILE PHONES
  
• STANDARD DOCUMENTATION FOR PLANNING SUBMISSIONS

Yet this code is routinely ignored.  In 2003 I tried to introduce legislation to give local authorities greater powers over the erection of transmission masts. This failed. 

One of the most disgraceful examples of a mobile operator behaving irresponsibly was when 02 moved a mast from the Suffolk part of Newmarket to the small Cambridgeshire bit of the town without telling anyone. To make things worse it was erected near a school.
 

Earlier this year 02 put up a mast in Newmarket’s Exning Road. There are now fears that Vodafone will erect another just 400 yards away. This is just a ridiculous situation.
 

My Parliamentary colleague, Greg Clark, recently tried to introduce a Bill which would have encouraged roaming, as conducted in other countries, and the sharing of masts between mobile phone operators. As was the case with my own piece of legislation, it is doomed to failure.
 

If there is a Code of Best Practice than mobile phone operators should adhere to it. Yet it is frankly not worth the paper it is written on. It is simply not good enough.

We are in such volatile territory that it is impossible to forecast what stock markets and sentiment will do on a day to day basis. However, it is plain to see that many countries are in recession that will impact different countries in varying degrees. 

The one size fits all interest rate policy of the eurozone may be severely challenged if individual countries’ economies deteriorate and if there are specific banking crises. Countries may begin to consider if being part of the eurozone makes sense, in these extreme circumstances. 

The introduction of the Euro had very little to do with economics but was a political statement about unifying European countries. Since then it has taken on an economic form of its own, and would be seen by eurozone members as a terrible defeat if there was a move to withdraw. 

Adopting the Euro has always been considered to be irreversible. If indeed a member tried to withdraw there would be a follow on impact on other European countries that is very difficult to forecast. Really this is unknown unknown territory. 

But is it even possible for a member state to leave the eurozone? There are no Treaty provisions about leaving, just as there are no Treaty provisions for leaving the EU. However, this does not necessarily mean it could not be done – it is just not clear how it could be done in practice, or what the consequences would be. 

All of this looks highly improbable but will depend on just how deep the economic crisis in Europe proves to be. 

Madame Fu Ying, China’s exemplary ambassador visited my constituency on Friday. We firstly met sixth formers at Castle Manor Business & Technology College in Haverhill, which is the largest town in the West Suffolk constituency. A lively Q&A session took place. 

The ambassador and her party went on to Newmarket, to watch the bloodstock auction at Tattersalls, which accounts for 85% of sales in Britain. There has been considerable concern as to what the impact of the economic crisis would have on sales and prices. Last week some very good prices were recorded, largely as a result of buying by the Maktoum family of Dubai. This week has seen a rather more mixed picture. 

Newmarket is the historic world capital of horse racing, and the ambassador enjoyed an afternoon’s racing; she also presented a cup to a winning owner after one particular race. 

Racing is a hugely important part of the life of West Suffolk, and is a world beating British success story. No doubt in due course racing will begin again in China and a link between Newmarket’s main industry and China will emerge. It was excellent to give the ambassador an insight into this.