House of Lords Reform and Size of the House of Commons

Lord Hanson of Flint Excerpts

Wednesday 19th October 2016 Commons Chamber

[Pete Wishart]

There are many things that can be defined as redeeming features, and that is one that I accept, so I thank the right hon. Gentleman for pointing it out.

The new parliamentarians of Great Britain are strangers to the ballot box, but very good friends of the former Prime Minister.

[Mr David Hanson (Delyn) (Lab)]

Following the right hon. Gentleman’s point on gender balance, may I help the hon. Gentleman by saying that, among the hereditary peers, there are currently 91 men and one woman?

[Sir Desmond Swayne (New Forest West) (Con)]

rose—

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[Michael Ellis]

I had noticed that brass neck, and I congratulate my hon. Friend on making that point. At least 61 peers are registered as living in Scotland.

[Mr Hanson]

Will the Deputy Leader of the House answer one question? Does he support the principle of hereditary peers in the 21st century, or will he support the ten-minute rule Bill to abolish them that I introduced last year or Lord Grocott’s Bill to end them that is now in the other place? Will he confirm that he could now do so?

[Michael Ellis]

As I have said, as was set out in the Conservative party manifesto, the Government recognise the need to reduce the size of the House of Lords. However, comprehensive reform of the House of Lords is not considered a priority in the current Parliament, given the other pressing constitutional matters, not least, I should say, the further devolution of powers to Scotland and Wales. We consider there to be higher priorities.

The House of Lords has not stood still in the past few years. In the last Parliament, it took forward some important reforms, with Government support. Although there is more to do, that Chamber has constantly evolved. The House of Lords Reform Act 2014 allowed peers to retire formally and permanently for the first time. It also provided for the expulsion of peers for non-attendance. Previously, a peer had to apply for a leave of absence. The Act was promoted by Lord Steel.

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[Mr David Hanson (Delyn) (Lab)]

I want to lay my cards on the table straight away and say that I support the motion and I support the comments of my hon. Friend the Member for Wansbeck (Ian Lavery). I have been here for nearly 25 years, and in that time I have voted on every available occasion to abolish the House of Lords. If I have not been able to abolish the House of Lords—self-evidently, I have not—I have voted for change in the House of Lords.

I will propose some changes that the Government could deliver, should they so wish, to improve democracy without achieving my ultimate objective of massive reorganisation of the formulation of the House of Lords. It is not tenable in the 21st century to have an unelected House deciding on policy. It is not tenable to have hereditary peers deciding on policy. It is not tenable to have hereditary peers who are elected by other hereditary peers, with very small mandates—sometimes as few as three votes—deciding policies that affect the lives of my constituents. At a time when the Government are seeking to reduce the membership of this House from 650 to 600 and to remove completely Euro Members of Parliament, whose powers and responsibilities will be transferred back to this House, it is not tenable for us to allow the House of Lords to continue unchanged.

The recently appointed Lord Speaker, Lord Fowler, is a former Conservative MP whom I remember being a member of the Cabinets of Mrs Thatcher and John Major when I first came here. He has said that there is no way the Lords can defend its current size of 820 peers and that

“we’ve been faffing around on this for some time now. And my fear would be that unless we take the initiative here someone else will”.

Let me suggest some simple initiatives. I will set the bar very low, because the Government’s position appears to be that they cannot make massive change, so they will make no change. A proposal to bring some things back into kilter is something that we in this House should support, and I suggest these three simple changes. First, let us remove from the House of Lords the 92 hereditary peers, 91 of whom, as I said in an intervention on the hon. Member for Perth and North Perthshire (Pete Wishart), happen to be men and only one of whom is a woman. Those 92 hereditary peers are elected by as few as three votes.

[Jeremy Quin (Horsham) (Con)]

As the right hon. Gentleman has just said, those hereditary peers are elected. The motion states that the Government should

“put in place plans to significantly reduce the number of unelected Lords”.

Is he proposing that the number of hereditary peers should stay the same, if he supports the motion?

[Mr Hanson]

If the hon. Gentleman listens to what I am saying, he will hear that I have three small points to make—three very low bars. The first low bar is the removal of the hereditary peers. The second low bar is not to fill any more vacancies with unelected peers until the House of Lords gets down to a reasonable size, below that of the House of Commons.

On hereditary peers, let me just say that one of those recently elected is the Lord Fairfax of Cameron, whose great-great-great-great-great-great-something grandfather got his peerage because he was the first Englishman to travel to Scotland to swear allegiance to the new King James I. I happen to think that in the 21st century, we should pick our legislators on more than the fact that one of their ancestors knew how to get to Scotland quite quickly. That is no way to run a modern House of Lords.

Lord Thurso, the last Member to be elected as an hereditary peer, was an hereditary peer but he renounced his peerage, came to this place and sat on the Liberal Democrat Benches until he lost his seat, when he suddenly rediscovered his blue blood. That is no way to run a modern democracy. In April this year, I introduced a ten-minute rule Bill to abolish hereditary peers. A Bill in another place in the name of my noble Friend Lord Grocott is designed to do something very similar to what the hon. Member for Morecambe and Lunesdale (David Morris) has suggested: not to fill the position of hereditary peers who retire or die. Those are both simple steps that could be taken now to remove the hereditary peers. Those things would be part of a wider package in due course, but the Government could certainly do them now. I am sure that no right hon. or hon. Member of this House would object to a small Bill to meet those objectives.

My second suggestion is not to fill vacancies until the size of the House of Lords gets down to that of the House of Commons. What is wrong with that? I want massive change—I have voted to abolish the Lords—but in the absence of consensus, let us look at how we can reduce the number of Members over time. That is perfectly reasonable.

The third suggestion may be revolutionary, but it is an attempt to find a compromise. I agree with the Government that Members of Parliament should represent equal numbers of constituents. Let us do that, but let us keep 650 MPs and have a boundary review on that basis, as my hon. Friend the Member for Wansbeck said. In my part of the world, Wales, we would lose seats under such a review—we have 55,000 to 60,000 electors in each constituency—but we would have the same number of constituents and reasonable representation. But, no, this Government are seeking to reduce the representation from 650 to 600 Members, while in previous 18 months the former Prime Minister appointed 132 peers to the House of Lords.

I am sorry, but I happen to think we need radical surgery and radical change. I have three simple suggestions to get the ball rolling: remove the hereditaries, freeze appointments and consider keeping 650 Members of Parliament with equal numbers of voters, including—dare I say it?—in the Western Isles and the Isle of Wight, which are slightly different. Let us look at those things and make sure we make some radical changes on the road to democratising this Parliament and giving a lead to the rest of the world.

[Several hon. Members rose—]

Oral Answers to Questions

Lord Hanson of Flint Excerpts

Thursday 9th June 2016 Commons Chamber

[Mr Whittingdale]

I am grateful to my hon. Friend and I pay tribute to his efforts particularly to bring about the stadium for Cornwall, which the Government are committed to. As he knows, I have already held two meetings with interested parties in Cornwall, which he was able to come to. I understand that good progress is being made, and that a draft planning application is now going before the council. I hope that that will lead to progress, and that we will see commencement of work on a stadium in the near future.

[Mr David Hanson (Delyn) (Lab)]

T4. What protections can my constituents and others expect on mobile phone roaming charges in Europe in the event of an exit on 24 June?

[The Minister for Culture and the Digital Economy (Mr Edward Vaizey)]

That is a very good question. Britain was at the forefront of negotiating the reduction in roaming charges, working with our European partners, and it is yet another example of the benefit to consumers and citizens of being a member of the European Union.

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[Dr Thérèse Coffey]

Of course, matters of voting are ultimately for the House to decide, although I do not sense an extended appetite for the changes suggested.

[Mr David Hanson (Delyn) (Lab)]

7. What plans he has to review English votes for English laws.

[Dr Thérèse Coffey]

We have fulfilled our manifesto commitment in introducing English votes for English laws, which we believe will continue to strengthen the Union. However, the Government will undertake a review of the English votes for English laws procedure in the autumn, as we said we would, drawing on the work of the Procedure Committee, the Public Administration and Constitutional Affairs Committee, and the House of Lords Constitution Committee.

[Mr Hanson]

Some aspects of the Wales Bill currently before the House are solely Wales matters on which every Member of this House can vote, and yet if similar provision were put in place in England, my vote as a Welsh Member of Parliament would not count. Is that fair?

Oral Answers to Questions

Lord Hanson of Flint Excerpts

Tuesday 7th June 2016 Commons Chamber

[Mr Speaker]

Order. The Chancellor should remain seated. If that is the sum total of what he has to contribute on his feet in response to that question, frankly it was not worth the breath. It was utterly feeble and constitutionally improper. Learn it—it is very simple!

[Mr David Hanson (Delyn) (Lab)]

6. What assessment he has made of the potential effect on the economy of the UK leaving the EU.

[Mr Jim Cunningham (Coventry South) (Lab)]

12. What assessment he has made of the potential effect of the UK leaving the EU on the economy of (a) Coventry and (b) the west midlands.

[Mr Hanson]

The head of the World Trade Organisation said yesterday that the process of negotiating deals outside Europe would take decades. Is that not one of the reasons why confidence would be hit, currency would fall and jobs would be lost, including the 24,000 in Wales that the Minister has mentioned, and why companies such as Hitachi have mentioned today that they would pull out of the United Kingdom? Do we not agree on this one, Minister?

[Damian Hinds]

I think we do agree on the turmoil that uncertainty can bring, and the uncertainty about future trade deals that the right hon. Gentleman raises is part of that. There is much more uncertainty as well, of course, for businesses that currently trade with other European countries and people who are employed in those countries or might be thinking of going to them. All these things generate uncertainty, which creates economic turmoil in the short run. There is a real danger of missing out on a very large number of third-party trades in the long run, when all the EU trade deals currently under negotiation are finished, which will account for some 80% of our trade.

UK Economy: Post-Referendum Assessment

Lord Hanson of Flint Excerpts

Monday 23rd May 2016 Commons Chamber

[Mr Gauke]

I shall try not to be drawn too much on the subjects of curry or Leicester City, although I of course congratulate Leicester City and look forward to their season, and possibly more, in the Champions League. Immigration policy for those outside the European Union is clearly a matter for this Government and for this House, and that will continue to be the case, whatever the result on 23 June.

[Mr David Hanson (Delyn) (Lab)]

Airbus, which employs 7,000 people across north Wales and north-west England and many thousands more elsewhere in the United Kingdom, has, with the full support of the trade unions, written to every employee of Airbus to explain to them why they should vote yes in the forthcoming referendum. Will the Minister confirm that the short-term and long-term risks outlined in today’s report are the very reason that companies such as Airbus have come off the fence to strongly support a yes vote on 23 June?

[Mr Gauke]

The right hon. Gentleman makes a good point. Businesses are perfectly entitled to write to their employees when they see a risk to the business that they undertake, and those consequences should be made very clear. It is striking how the concerns of individual businesses, big and small, about the consequences of leaving the European Union are consistent with some of the concerns that we have set out in the Treasury document—namely, that the UK would be poorer outside the European Union and that we are stronger, safer and better off within it.

Oral Answers to Questions

Lord Hanson of Flint Excerpts

Tuesday 19th April 2016 Commons Chamber

[Mr Speaker]

We have to move on—far too slow.

[Mr David Hanson (Delyn) (Lab)]

6. What assessment he has made of which groups within the UK population will benefit from planned changes to corporation tax.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

13. What assessment he has made of which groups within the UK population will benefit from planned changes to corporation tax.

[The Financial Secretary to the Treasury (Mr David Gauke)]

Corporation tax cuts have been a central part of the Government’s economic strategy, and that strategy is working; there are 2.3 million more people in employment since 2010. The further cuts in the main rate announced at the Budget, which will bring it down to 17% by 2020, will benefit over 1 million companies, large and small. Lower corporation tax rates will support UK companies to invest and grow, creating jobs as they do so.

[Mr Hanson]

One of the justifications for the corporation tax cut was that businesses would pass it on to workers through the increase in the living wage. Evidence is now emerging that some companies intend to pocket the tax cut and squeeze conditions for their employees, so what steps do the Government intend to take to monitor that?

[Mr Gauke]

The cuts in corporation tax will result in greater investment in this country, and greater investment drives productivity growth, and productivity growth is what will drive higher living standards. Let us remember that it is this Government who have brought in the national living wage, and we have seen very large numbers of people see increases in their wages and salaries.

Budget Resolutions and Economic Situation

Lord Hanson of Flint Excerpts

Tuesday 22nd March 2016 Commons Chamber

[Mr David Hanson (Delyn) (Lab)]

Oh—thank you very much, Mr Speaker. [Laughter.] I have been here so long that I was falling into a general stupor. I am so pleased to have you back in the Chair. It is pleasure to be here under your chairmanship, and I welcome you back.

Over the last couple of days, I have taken some time to think about when a Budget was either as bad or has unravelled as quickly as this one. I thought of this Chancellor’s Budget of 2012, with its pasty tax and caravan tax, and I was reminded today of the failed Budgets of the right hon. and learned Member for Rushcliffe (Mr Clarke) in the early ’90s. He raised VAT on fuel, including gas and electricity, and was defeated on it. However, after 24 years in the House, I cannot think of a Budget that has unravelled so quickly, or in such a damaging fashion, as the one proposed by the Chancellor of the Exchequer today.

We will vote on the Budget at 7 o’clock, when we do not even know—because we have not had an answer from the Chancellor today—from where the £4.4 billion loss of revenue from the appalling cut that he initially proposed will come. He said, “Trust me: we will discuss this in the autumn”, but it strikes me that we cannot wait until the autumn, given that we have a vote this evening. I hope that the Chief Secretary will respond to those central points when he winds up the debate.

The Chancellor admitted today that he had made a mistake. He admitted that he had made a U-turn. I put it to the House that this is no mistake, and no U-turn. This is simply the Chancellor who could not get his proposals through the House of Commons. The values that led him to make the choices that he made last week—the values that led him to choose to take money from disabled people in personal independence payments, and the values that led him to cut capital gains and business taxes—were values that he still holds today. If he could have got those measures through the House, he would have done so. His central value is one which ensures that we see a shift from the poor to the rich, that we have a small state, and that members of an out-of-touch elite are managing issues that they know little about, and care little about. I hope that the Chief Secretary, who represents Chelsea and Fulham, will accept that he lives in a bubble that does not relate to the lives of the vast majority of people in the constituencies that we represent.

On my patch, more than 1,200 people would have lost those personal independence payments. The fact is that the Chancellor has changed his mind not because of his desire to make the world better, but because his values would have been defeated, and defeated, dare I say it, by some of his own colleagues who faced the wrath of their constituents.

Time is limited, but I want to say three more things. First, we need to look at spending on infrastructure, including infrastructure in areas like north Wales. The Chancellor announced welcome money for Manchester airport, but we need a rail link to Manchester from north Wales. We need to think about how we can develop the north Wales economy with extra support for the HS2 route from Crewe to north Wales. We need to think about how we can electrify the rail network. That would be positive, valued investment, and we need to make it in a united European Union whose benefits are shared throughout the United Kingdom for all the people of the United Kingdom.

I take just one positive thing from the Chancellor’s Budget today: the Government’s commitment to campaign for a yes vote on 23 June. I look forward to working with them to achieve that yes vote for the good of the United Kingdom, and the good of north Wales.

[Several hon. Members rose—]

EU Referendum: Timing

Lord Hanson of Flint Excerpts

Tuesday 9th February 2016 Commons Chamber

[Mr Dodds]

I quite agree with my hon. Friend, who sets out the position very clearly.

Only last month, the Prime Minister himself was pretty unambiguous about this matter. He said:

“I’m not in a hurry. I can hold my referendum any time up until the end of 2017”,

and that

“it is more important to get this right than to rush it.”

My fear is that he is rushing it and not getting it right.

[Mr David Hanson (Delyn) (Lab)]

As a Welsh Member of Parliament, I have some sympathy with the right hon. Gentleman’s argument on grounds of purdah and for other reasons, but will he help to clarify it by telling us on what date he thinks the referendum should be held? I am also concerned that the longer this is left, the more damaging it will be to the long-term economy of the United Kingdom.

Small Businesses: Tax Reporting

Lord Hanson of Flint Excerpts

Monday 25th January 2016 Westminster Hall

On resuming—

[Mr David Hanson (in the Chair)]

As there were two Divisions in the House, the debate may continue until 8 pm. When we divided, Sammy Wilson was at his peroration.

[Sammy Wilson]

I have three points to make in conclusion. First, although more than 100,000 people have signed the petition, I believe, despite what the Government have said, that that is probably an indication that many businesses are not even aware of the changes. If the policy announcement has not percolated down to those who will be affected, how can we be sure that they will be fully aware of the substantive changes to come until they are hit by them? There is a lesson to be learned about just how effective the announcement and the consultation have been. Secondly, although the Government argue that they want to reduce the regulatory burden on businesses, I cannot for the life of me, for the reasons I have given, understand how the approach will reduce that regulatory burden.

My third point is about political perception, but it is important, and I would have thought that the Minister’s party would have been particularly concerned about this. There is increasing cynicism that somehow big business gets away with things that small business does not. The measure will apply to small businesses but not to large ones, yet all the time the headline news is about how the latter—whether it is the Googles or the Starbucks —seem to walk away from their tax responsibilities. People will find it difficult to understand why there should be a greater onus on small businesses to declare their earnings and business details when some of the larger ones can get away without paying tax for 10 years and then get a slap on the wrist. As we discussed earlier in the main Chamber, they seem to get away with paying very little.

VAT Evasion: Internet Retailers

Lord Hanson of Flint Excerpts

Thursday 14th January 2016 Westminster Hall

[Several hon. Members rose—]

[Mr David Hanson (in the Chair)]

Order. The hon. Member for Ross, Skye and Lochaber (Ian Blackford) has indicated that he wants to participate in the wind-ups, so I call Nick Herbert.

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[Rob Marris]

I see Mr Hanson has had a promotion, so he should be congratulated.

[Mr David Hanson (in the Chair)]

With due respect, I have had a release after 17 and a half years.

[Mr Gauke]

Yes, that is a very long sentence. I hope you are enjoying your new role, Mr Hanson.

I congratulate my hon. Friend the Member for Daventry (Chris Heaton-Harris) on securing this debate and setting out the case so well. I also congratulate my right hon. Friend the Member for Arundel and South Downs (Nick Herbert) on his passionate speech. He is correct to say that I have met Mr Juretic and listened carefully to the points he raised.

I will turn to specific points, but first I want to acknowledge the important work that Her Majesty’s Revenue and Customs is doing in collaboration with other agencies, both in the UK and internationally, to tackle tax evasion, which, as the hon. Member for Wolverhampton South West pointed out, is what we are talking about today. Tackling tax evasion in all its forms is a priority for HMRC. Last year, HMRC collected and protected a record £26 billion in revenues from compliance activities and secured more than 1,200 prosecutions using intelligence, sophisticated risking systems and smart data.

The phenomenal growth in online sales in recent years, which we have heard about this afternoon, has made many people’s day-to-day lives much easier but presents significant challenges for HMRC. That is because the supply chains are often very complex and involve a number of different entities. Suppliers can be located overseas and their records are not always available alongside the goods. All those factors combined make it much more difficult to spot where tax and duty have been paid.

To make things more complicated, HMRC is looking for frauds taking place in the midst of large volumes of legitimate trade. It is far from our, or HMRC’s, intentions to get in the way of legitimate trade, so HMRC is mindful of the need to target its activities proportionately. Nevertheless, this is a significant issue that we are determined to tackle. Building on its expertise in tackling evasion, HMRC has brought together specialists from across the Department and established in spring last year a taskforce to tackle the specific customs and VAT frauds that we have been talking about. That taskforce currently has more than 75 live investigations open into businesses or entities suspected of flouting the rules, and that figure is expected to grow to 150 before the end of the 2015-16 financial year.

Retailers Against VAT Abuse Schemes has highlighted about 500 businesses that it alleges are complicit in these frauds in some way. My hon. Friend the Member for Daventry drew attention to that list, and other hon. Members have referred to it. I assure the House that HMRC has examined the RAVAS list closely. For reasons of taxpayer confidentiality, I am not in a position to know, let alone say, what conclusions HMRC has reached in respect of each of the companies listed by RAVAS. However, it would only be fair for me to say that one cannot assume every company on the list is non-compliant.

At this point, I should touch on VAT registration numbers, which a number of hon. Members raised, including the hon. Member for Ross, Skye and Lochaber (Ian Blackford). Not all sellers are required to be VAT-registered. Overseas sellers that supply goods, located outside the UK, have no requirement to be registered for UK VAT. If they are compliant, in those circumstances, they would pay import VAT at the border. Of course, that would be a sticking tax, as they would not be entitled to reclaim that VAT. There are complications in this area, and the absence of a VAT number does not, in itself, suggest that a seller is breaking VAT law.

[Philip Davies in the Chair]

The issue is if sellers are claiming to be outside the UK and selling from outside it, but are in fact storing goods in a warehouse in the UK and dispatching them from the UK to a customer here. That changes the circumstances, but I want to be clear that the absence of a VAT number does not necessarily mean that fraudulent activity is occurring.

HMRC is working jointly with other Government agencies, including carrying out joint visits with trading standards and sharing intelligence with UK Border Force, to address risks across the entire supply chain to ensure that all sellers who sell online pay all the taxes that are due. To give hon. Members a flavour of that work, in an operation just before Christmas, HMRC and trading standards seized goods worth half a million pounds. As HMRC’s programme of activity continues, and both its operational intelligence and understanding of fraud improve, it expects to make more interceptions and seizures of illicit goods.

I should stress the point about illegitimate and legitimate trade. HMRC has the powers to seize or detain all goods in a warehouse, for example, but it also has to think about the potential impact of its actions, for instance, on the end consumer. If HMRC were seizing goods that subsequently turned out to be there legitimately, I suspect many of our constituents would want to raise concerns.

We recognise the concerns that have been raised by compliant businesses. Clearly, it is very important that non-compliant businesses should not be allowed to establish any unfair advantage over compliant businesses, as that would distort competitiveness. Again, that point was rightly made by a number of hon. Members. Tackling these frauds is just as much about maintaining a level playing field for business as it is about collecting the tax and duty that should be paid.

That operational work is the first strand of HMRC’s work to tackle these frauds. The second strand is engagement with the online platforms on which goods are sold.

Connaught Income Fund

Lord Hanson of Flint Excerpts

Tuesday 12th January 2016 Commons Chamber

[Harriett Baldwin]

Given the lack of time, I will make a bit of progress. If I have time, I will come back to the hon. Lady.

The FCA also knows that what happened with the Connaught funds has caused serious distress to many investors and continues to work closely on this case to secure the best possible outcome. As my hon. Friend the Member for Aberconwy said, the Connaught funds comprised three separate funds, income series 1, series 2 and series 3. In total, approximately £147 million was invested in the funds, which, as we know, were unregulated collective investment schemes. By definition, such schemes are not subject to direct regulation by the FCA or, previously, by the Financial Services Authority.

In the case of Connaught investment funds, many of the usual protections and safeguards that protect investors in regulated funds were absent, owing to the unregulated nature of some of the entities involved. On this point, I want to touch on two main issues. The first concerns the actions taken by the FCA to try to protect consumers, despite most of the entities involved being unregulated. That includes the ongoing work to secure a fair and proper outcome for investors. The second involves the steps that can be taken to ensure that this sort of situation does not happen again.

First, despite the schemes being unregulated, the FCA has taken a number of significant steps to try to protect customers right from when the first problems arose. In May 2011, the FCA, which was at the time the FSA, altered Tiuta’s permissions on issuing new regulated mortgage lending. Shortly thereafter, it wrote to investors who might have been mis-sold the fund and all financial advisers who sold the fund, asking them to review the sales and to contact customers where there may have been the risk of unsuitable advice. The FCA has continued to provide updates on the situation via its website. Once the funds were suspended and steps were taken to wind them down, the FCA announced on 16 July 2014 that it would support a negotiated settlement to address investor losses.

As hon. Members may know, the FCA initially supported the negotiations between the parties involved, as it believed that doing so was in the best interests of investors. However, having extended the negotiations more than once, in March 2015 the FCA announced its decision to withdraw from them. The FCA decided that a further extension to the negotiation period was not in the best interests of investors. I am sure my hon. Friend will understand that as the negotiations were voluntary and confidential, the FCA cannot provide specific details on what happened during the negotiations.

[Mr David Hanson (Delyn) (Lab)]

Will the Minister give way?

[Harriett Baldwin]

I have so little time.

The FCA is now conducting formal investigations into the activities of the two operators of the fund, Capita Financial Managers Ltd and Blue Gate Capital Ltd. My hon. Friend questions the length of time that the FCA is likely to take in order to conduct and conclude its investigations. Although it is too early to give a reliable estimate of the likely time frame for their conclusion, the FCA has assured me that it intends to progress the investigations efficiently and effectively. The length of time it will take to complete the investigations is affected by, among other things, the level of co-operation received from those under investigation and any related third parties.

As the FCA is in the process of carrying out its investigations it is, of course, not possible to comment on their likely outcome. The FCA is unable to provide any comment on what the level or form of compensation to investors may be if it is found that the operators have contravened any regulatory principles or rules.