Payday Loan Companies
Baroness Laing of Elderslie Excerpts(10 years, 10 months ago)
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Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Before I call the hon. Member for Worcester (Mr Walker), it will be obvious to Members present that everyone who has spoken has gone to the wire and taken every second, or more, of the eight-minute time limit. It is not really meant to work like that, and it would have been helpful if hon. Members had sometimes limited their remarks, rather than going absolutely to the cliff edge. After the hon. Gentleman has spoken, I will reduce the time limit for speeches to seven minutes.
Banking
Baroness Laing of Elderslie Excerpts(10 years, 10 months ago)
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Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Before I call the next speaker, I should say that obviously a great many Members wish to contribute and there is limited time available. I am therefore imposing a limit of eight minutes on Back-Bench speeches. If a Member takes an intervention, the eight minutes is increased by one minute, of course, and I urge Members to take that into consideration when deciding how long to speak for; otherwise, I shall have to decide for them. I call Michael Connarty.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. It will be obvious to the House that every speaker has taken their full eight minutes or more. I therefore have to reduce the time limit for Back-Bench speeches to seven minutes.
Mr Gauke
No, I shall make some progress.
We did not hear anything about the bankers’ bonus tax from Labour today—at least we do not see much about it in its motion—although it is customary on these occasions for Labour to identify yet another spending programme to be funded by it. [Interruption.] I wonder whether there was no mention of it today because the Opposition are embarrassed by previous occasions when they have claimed that more would be paid—[Interruption.]
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. This has been a quiet and dignified debate. Members who were not present during it have now come into the Chamber. I ask them to have the courtesy to listen to the Minister.
Mr Gauke
Thank you, Madam Deputy Speaker. I do not know whether the Opposition are embarrassed by previous occasions when they claimed more would be paid from a bankers’ bonus tax than was actually paid in bankers’ bonuses. Perhaps they have noticed that if they cap bonuses they will get less tax from them. They may want to revise their numbers on that.
It has to be pointed out that it has been estimated that City bonuses in 2012-13 were more than 85% lower than at their peak in 2007-08. I know there is genuine concern about bank bonuses encouraging short-term high-risk behaviour, but it is not just the amount that matters; it is also the structure of the bonuses. There is a difference between cash bonuses and bonuses paid in shares with the opportunity for clawback if there is bad behaviour or a need to rebuild regulatory capital. Under the PRA remuneration code, large parts of bonuses must be deferred and paid in shares, aligning the interests of the employee with the long-term interests of the bank. The implication of many of today’s comments is that there is a concern about total remuneration, yet the motion and everything we have heard from the Labour Front Bench is about only one part of remuneration: bonuses. The reality is that the European directive and the policy pursued by Labour will drive up salaries. It is not clear why the Opposition are interested in only one aspect of remuneration, and we have certainly not had an explanation of that. It is also worth pointing out that the Governor of the Bank of England was critical of a cap in his evidence to the Treasury Committee this afternoon.
I am pleased that Labour appears to support the virtues of competition, but that was not its record in government. There were 10 banks in 1997, but that figure reduced over the following 13 years. The Cruickshank report, produced in 2000, was supposed to encourage more competition, but it was blocked by the Treasury and nothing was done. Our record has involved a much greater focus on competition, and it is a primary objective of the Financial Conduct Authority and a secondary objective of the Prudential Regulation Authority. We have a payment systems regulator, which makes things easier for small businesses, and we have changed the application process to make it much more proportionate for new businesses. Furthermore, the regulators indicate that 22 new banks are interested in acquiring authorisation in the UK.
On empowering consumers, our new switching policy saw a 54% increase in switching in December, compared with the year before. We have heard Labour’s proposals for a quota system. We do not have the details, of course, but simply reducing the number of branches of one bank will not create huge new levels of competition. There are concerns about branches being lost under Labour’s proposals. Most significantly of all, the Governor of the Bank of England told the Treasury Select Committee this afternoon that that would not help with competition. One other person has been critical of that policy in the past. In April 2011, the shadow Chancellor said that
“there is no need to break up institutions”.
The last Labour Government’s record on the banking sector was lamentable. Their regulatory system failed, and their attempts to ensure that individuals were held to account also failed. They tried to ensure that bonuses did not create perverse incentives, but that failed. They tried to encourage more competition; that failed. They tried to protect taxpayers’ money, but that failed too. Their record is one of failure, and until they acknowledge that, there is no reason why the British people should take anything they say on this matter seriously again.
Question put.
National Minimum Wage
Baroness Laing of Elderslie Excerpts(10 years, 10 months ago)
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Madam Deputy Speaker (Mrs Eleanor Laing)
I must advise the House that Mr Speaker has selected the amendment in the name of the Prime Minister.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. The Chair has noted that the hon. Member for Skipton and Ripon (Julian Smith) has departed immediately and too soon.
Mr Newmark
I fear that the hon. Lady’s answer might have frightened my colleague away. I promise that I will not run away after she answers me. Will she at least acknowledge that this Government, by raising to £10,000 the level at which tax hits, thereby taking 2.7 million people out of taxation altogether, have indeed helped the low-paid?
Financial Services (Banking Reform) Bill
Baroness Laing of Elderslie Excerpts(10 years, 11 months ago)
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Sajid Javid
I thank the shadow Minister, the hon. Member for Kilmarnock and Loudoun (Cathy Jamieson), for her comments and all other—
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. With the leave of the House, Minister.
Sajid Javid
Thank you, Madam Deputy Speaker. With the leave of the House, I thank the shadow Minister for her comments and all other Members who contributed to the debate. In particular, I thank my hon. Friend the Member for Chichester (Mr Tyrie) for the work that he has done in this area, especially in chairing the Parliamentary Commission on Banking Standards. I have listened to all hon. Members with great interest over the past couple of hours, but in particular to my hon. Friend. I thank him for all his efforts and also for his supportive comments, which I take as broad support for the Government’s amendments.
In the time available, I shall deal quickly with some of the key issues that came up. The shadow Minister raised the issue of timing and her understanding that there was not enough time to scrutinise the Bill and the amendments. She will know that the Bill started with the recommendations of the Independent Commission on Banking, which were scrutinised extensively in the House and in the other place, including the recommendations of the PCBS. The Government produced their response as quickly as they reasonably could to the PCBS, which was in July, in advance of the Commons Report stage so that it could inform debate as soon as possible.
The shadow Minister also asked why the Government resisted Opposition suggestions on improving professional standards. Again, she will know that because the PCBS had been set up and had been asked specifically to look into this area, the right thing to do was to listen to the commission and take its views into account when drafting amendments, before anything was settled upon. She asked about minimum standards and competence. She is right to do so, as we all recognise the importance of those. It is worth pointing out that, because of Government amendments that were introduced, banks will be required to check all new applicants to ensure that they are fit and proper, and not just at the point that they start with the bank; annual checks will have to take place and regulators will have important powers to specify any qualifications that they believe are required for the job.
A number of hon. Members raised the issue of a code of conduct. The regulators, both the Financial Conduct Authority and the Prudential Regulation Authority, will have broad powers, including the ability to set up a code of conduct for banks in general or for a particular bank, as they see fit. These are the kind of powers that regulators can use in future. My hon. Friend the Member for Redcar (Ian Swales) asked how we could scrutinise regulators. He is not in his place, but he will know that an annual report produced by the regulators about how they discharge their functions will be provided to Parliament, where it can be given proper scrutiny.
There was a discussion about remuneration. Hon. Members will know that the PCBS made recommendations on remuneration which the Government have accepted, particularly on longer deferrals and clawbacks, including a full clawback if a bank ends up receiving state aid. I understand that the PRA will make further recommendations on that next year.
I have time only to touch on Lords amendment 41 which, as I said, the Government oppose. It is worth taking into account the comments of my hon. Friends the Members for Chichester and for Wyre Forest (Mark Garnier) that, although the amendment is well intended, it will lead us back to a box-ticking culture and confuse regulation and professional standards. Both are necessary, but it would be wrong to conflate these—
Madam Deputy Speaker (Mrs Eleanor Laing)
With this it will be convenient to discuss the following:
Lords amendments 64 to 154.
Lords amendment 155, and amendments (a) and (b) thereto.
Lords amendments 156, 161 to 163, 169 to 172, 175 to 180 and 182 to 184.
Sajid Javid
The second group of amendments introduce substantial changes that will ensure that consumers get a fair deal. They will drive up competition and improve outcomes for consumers. Amendments 63 to 134 introduce a new competition-focused, utility-style regulator as a separate legal entity established under the FCA.
The Government have concerns about the payment systems market, with particular problems in three main areas: competition, innovation and responsiveness to consumer needs. Under the current arrangements, there is nothing holding big banks, payment scheme companies and infrastructure providers to account for consumers. The regulator will therefore have strong powers and objectives: to ensure that the operation of payment systems promotes fair and open competition in banking; to promote innovation in payment systems, for the benefit of consumers; and to support the interests of end users.
The regulator will have bespoke objectives and powers to address problems particular to the market for payment systems, allowing for the benefits of close co-ordination with the FCA. Once a payment system is brought into scope, the regulator will have powers over the system’s operators, infrastructure providers and providers of payment services using the system.
The payment system regulator will be equipped with a broad range of regulatory powers, enabling it to address the significant issues causing problems in the market for payment systems. To open up access and encourage greater competition, the regulator will be able to intervene and require changes to any anti-competitive fees or terms and conditions of an agreement for access to regulated systems. It will have powers to require the provision of access to payment systems. The regulator will also have competition powers exercisable concurrently with the Competition and Markets Authority.
My hon. Friend the Member for South Northamptonshire (Andrea Leadsom), who is in her place, will be pleased to know that the regulator will examine the case for full account number portability within 12 months of its establishment—although, with the successful seven-day switching service, which was launched by banks in September, hon. Members should know that they do not have to wait until then if they want to switch their account quickly.
Cost of Living
Baroness Laing of Elderslie Excerpts(10 years, 12 months ago)
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Sajid Javid
I am sure that question will be looked at further during the Co-op inquiry. The number and nature of meetings between the Leader of the Opposition, the shadow Chancellor and Co-op representatives will also be looked at—[Interruption.]
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. The House cannot hear the Minister. If hon. Members want to argue with him, they must hear what he has to say first.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. The hon. Gentleman is making a brief intervention, and he must be heard.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Before I call the next speaker, the House will be aware of the high demand for time to speak and the lack of supply of it before we reach the end of the debate. I therefore impose with immediate effect a limit of eight minutes on speeches from Back Benchers.
The Leader of the House of Commons (Mr Andrew Lansley)
On a point of order, Madam Deputy Speaker. I am sorry to interrupt the debate, but have you have had any indication from Mr Speaker whether he intends to make any statement to the House about his speech to the Hansard Society this evening, in which he proposes to announce the establishment of a Speaker’s commission on digital democracy? Furthermore, briefing of the media on the speech and the announcement within it has been taking place for some four hours already without any announcement being made to the House.
Madam Deputy Speaker (Mrs Eleanor Laing)
I am not aware of any such plans for any such statement and, as the right hon. Gentleman knows, that is not a matter for the Chair.
Women and the Cost of Living
Baroness Laing of Elderslie Excerpts(11 years ago)
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Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Before the hon. Member for Ashfield (Gloria De Piero) progresses, I gently remind her that one does not refer to Members of the House by their names. The Prime Minister is “the Prime Minister” and the Chancellor of the Exchequer is “the Chancellor of the Exchequer”.
Nicky Morgan
My hon. Friend is absolutely right, and it is a critical point. The tax-free child care policy that we have announced will, for the first time, benefit self-employed women, and that is something that the current voucher system does not do.
In conclusion, it is clear that, despite some of the claims put forward by the Opposition, the Government’s plan for recovery is the only plan that will create sustainable long-term growth for our country. It is the only plan that will support employment. It is also the only plan that not only puts faith in the abilities of the women and men of this country to help us work our way back into prosperity, but puts money, through our rise in the personal allowance, back into their pockets. I, like the hon. Member for Ashfield, want to see even more women working, setting up businesses and rising to the top of businesses. The Government want to make that happen, so I ask the House to reject the motion before us.
Several hon. Members rose—
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Before I call the next Member to speak, I must tell the House that, as there has been a large amount of interest in this debate and there is only a limited time available, I have had to impose a seven-minute limit on speeches from the Back Benches.
Alison McGovern
I am glad that the hon. Gentleman intervened to patronise me and say that I do not like to hear facts—[Interruption.] I am glad that he intervened to patronise me in that way, because—[Interruption.]
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Gentlemen, the hon. Lady must be heard.
Alison McGovern
Thank you, Madam Deputy Speaker.
The hon. Member for Braintree (Mr Newmark) tells me that I do not like to hear facts, and then he confuses the population of women in employment with the unemployment rate. I am sorry—[Interruption.] Madam Deputy Speaker, it is incredibly frustrating in this House when people shout things like, “More women in work than ever before,” when we all know that the rate of unemployment is what matters. I suggest that the hon. Gentleman acquaints himself with some of the facts. If the population increases, that will increase the population in work. It is the unemployment rate that matters, most importantly the long-term unemployment rate. That is the most damaging thing, as I know from communities such as mine. Long-term unemployment has increased eight times as fast for women as it has for men, so I would instruct the hon. Gentleman to acquaint himself with the facts rather than coming to this House to patronise me.
Interest Rate Swap Derivatives
Baroness Laing of Elderslie Excerpts(11 years, 1 month ago)
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Sajid Javid
May I tell my hon. Friend that I would be more than happy to meet him and other stakeholders to discuss this further?
Madam Deputy Speaker (Mrs Laing)
If the Minister has finished his intervention, the hon. Gentleman may conclude his speech.
Guto Bebb
I appreciate that offer very much, Madam Deputy Speaker.
Question put and agreed to.
Resolved,
That this House considers the lack of progress made by banks and the Financial Conduct Authority on the redress scheme adopted as a result of the mis-selling of complex interest rate derivatives to small and medium businesses to be unacceptable; and notes that this lack of progress is costly and has caused further undue distress to the businesses involved.
Northern Rock
Baroness Laing of Elderslie Excerpts(13 years ago)
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Mr Hoban
I do not agree with that at all. If the hon. Gentleman had spoken to Northern Rock employees over the past few months, as I have, he would have found that they clearly have the capacity to expand their services beyond what is currently on offer; they can cope with a bigger flow of savings and mortgages. That is good news, because it will enable Northern Rock to cope with the volumes that should flow from the acquisition by Virgin Money. If we did not sell Northern Rock now, the risk is that there would be further job losses to try to cut the cost base in line with the current business book. That would not be a good outcome for Northern Rock or its employees. The prospect of moving to Virgin Money has lifted the uncertainty from over the heads of Northern Rock employees. As one of them said to me on Thursday, “This is like an early Christmas present.”
Mrs Eleanor Laing (Epping Forest) (Con)
In contrast to the Opposition’s blind prejudice against the private sector, does the Minister agree that Sir Richard Branson’s undertaking that there will be no compulsory redundancies and no branch closures in the next three years shows that Virgin Money is a decent company that will bring benefits to Northern Rock’s savers and employees, and to the north-east generally?
Mr Hoban
My hon. Friend is absolutely right. What is impressive about Virgin Money has been the way it has sought to engage with stakeholders in the north-east and to understand the importance of Northern Rock not just to the employees but to the wider community in the north-east. It has put forward a business plan that seeks to focus its operations in Gosforth in a way that will help to protect and grow the operation there. That is why the news of Northern Rock’s sale to Virgin Money has been greeted positively by most people, but, sadly, not by those on the Opposition Benches.
Eurozone Crisis
Baroness Laing of Elderslie Excerpts(13 years ago)
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Mr Osborne
I would hope that we would persuade all parties in this House. There is certainly strong agreement on the Conservative Benches that we want to rebalance the responsibilities and repatriate some powers. The Liberal Democrats and the Liberal Democrat leader have talked about rebalancing responsibilities—he did so earlier this week. [Interruption.] The shadow Treasury Minister, the hon. Member for Nottingham East (Chris Leslie), seems to forget the position set out by his party leader this weekend. When he was asked whether he thought that Brussels had too much power, he said no. That is the official position of the Labour party going into these negotiations. I know that Opposition Members look pretty glum about it, but that is what the leader they chose—or rather, they did not choose—has done for them.
Mrs Eleanor Laing (Epping Forest) (Con)
Will the Chancellor explain to the House how it has come about that although the United Kingdom’s deficit this year is larger than Greece’s, our interest rates are similar to those in Germany?
Scotland Bill
Baroness Laing of Elderslie Excerpts(13 years, 5 months ago)
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Ann McKechin
The right hon. and learned Gentleman speaks with considerable expertise on legal issues. I do not want to discuss the individual cases, but he is absolutely right that they involved important points of principle that everyone who is concerned about the integrity of Scottish law should take seriously into account.
Mr Salmond has attempted to climb down from the remarks that he made in a Holyrood Magazine interview, but has refused to apologise. “Better late than never” should be the new mantra, but the First Minister does not have a reverse gear. Instead, this whole sorry incident has typified a controlling approach that his spin doctors have tried hard to hide. In his view, there is a hierarchy in our national debate between those who are deemed “good Scots” and those classified as “bad Scots”, and anyone who speaks directly against his view will always be in the latter category, even if they are one of our country’s most eminent legal minds.
Mrs Eleanor Laing (Epping Forest) (Con)
I would never claim to be one of our country’s eminent legal minds, but, like the hon. Lady, I am a non-practising member of the Law Society of Scotland. I commend her for her defence of Scots law against the current actions of the Scottish Parliament.
Ann McKechin
I am grateful to the hon. Lady, a fellow lawyer. I do not want to turn this into a lawyers’ conference, however, lest anyone should suspect that we have vested interests. More seriously, this is about the tone of the debate and about the relationship between the Executive and the judiciary, which forms the foundation of our democracy.
I noted in this week’s Sunday Herald that some of the First Minister’s own Ministers and MSPs apparently refer to him in private as the “Dear Leader”. References to any similarity with North Korea might seem comical, but this display fits in better with a paranoid one-party state than with a modern, progressive, advanced 21st-century democracy. I certainly do not believe that everyone who supports the SNP or wishes for independence follows that creed—Jim Sillars is a good example of someone who believes in independence but also believes in listening to other people’s arguments—but it certainly has a home within the SNP “cybernat” sphere.