Co-operative and Mutual Businesses

Debate between Jim McMahon and Jim Shannon

Thursday 27th June 2019 Commons Chamber

[Jim Shannon]

I thank my honourable colleague for that intervention. I am sure that the Minister is listening and hope that he will take on board that suggestion, which could be very helpful. I wholeheartedly support that suggestion. This is not the Minister’s responsibility, but I have had discussions with other Ministers about help with high street rates.

It should be borne in mind that credit unions are for their members. The members invest their money to lend their money. It is a fantastic opportunity, and a fantastic example of how lending should be looked upon. The big banks should note that example. It should not be all about dividends for shareholders; it should be about the customers—those who are involved.

The Northern Ireland movement is massive in comparison with its counterparts in Great Britain. Statistics collated by the Bank of England in each quarter show the scale of credit unions in Northern Ireland in comparison with that of their counterparts in the rest of the United Kingdom. Of the 437 registered credit unions in the UK, 145 are located in Northern Ireland. A third of all adult credit union members in the UK are in Northern Ireland, and four in 10 juvenile members are from Northern Ireland. We are encouraging our young people to open accounts early—although, to be fair, that will probably be done by their parents or, perhaps, by their grandparents, who open accounts for them to start them off. It is good to encourage young people to be part of a bank, to save money, and thereby to see the benefits of credit unions. As I have said, it is a fantastic opportunity. If Members have not had an opportunity to investigate or gain knowledge of what is happening in Northern Ireland, I suggest that they should.

[Jim McMahon]

I had the pleasure of being in Belfast over the weekend for a Co-operative party event organised by Tony McMullen, a fantastic advocate for co-operatives. The party has published a manifesto for co-operatives in Northern Ireland. Perhaps the hon. Gentleman will read it and convey to the UK Government what we might take from Northern Ireland’s leadership in this regard.

[Jim Shannon]

I should be more than happy to do that. I read in the paper that the hon. Gentleman was the guest speaker at that event.

Our credit unions are clearly punching well above their weight, as so often happens in Northern Ireland. This is yet another example of what we do well there. I know from experience in virtually every corner of my constituency how vital credit unions are in helping some of the most marginalised in our society to save their money and borrow at very competitive rates. As was pointed out by the hon. Member for Harrow West, they have often filled the gap left by bank closures. They filled that gap when banks closed in Newtownards, and they filled it by opening a brand-new office in Kircubbin on the Ards peninsula—where there had previously been a branch of the Danske Bank—to supplement the branch in Portaferry.

Credit unions fill the gap on many occasions, and have a great interest in the community. A recent article in the Financial Times recognised the role that they play in our community beyond simply lending money and providing facilities for saving, explaining how they can and do help to squeeze out loan sharks, who cause a great many problems in Northern Ireland. They lend money and then take exorbitant interest rates from the backs of people. They are a scourge on society, including my Strangford constituency. They prey on the most vulnerable among us, and have ruined countless lives. I want to place on record my thanks to the credit unions throughout the United Kingdom of Great Britain and Northern Ireland whose service is helping many to break away from the grip of criminal moneylenders.

Despite the apparent strength of loan sharks, however, there are still significant opportunities in credit unions in Northern Ireland. Again, I agree with the motion: we must look to Her Majesty’s Government to work with the credit union movement, and the co-operative and mutual sector as a whole, to fulfil that untapped potential. More can be done with a little help. We have heard two suggestions in interventions, and other ideas are being presented.

The regulation of Northern Ireland’s credit unions moved from Stormont to the Financial Conduct Authority in 2016. I ask the Minister to engage with the credit unions in Northern Ireland—and, indeed, throughout the United Kingdom—and to help them to, in turn, work with the FCA to help them to grow further, and, furthermore, to help us to deal with problems such as financial exclusion.

Let me say in conclusion—and I realise, Madam Deputy Speaker, when I hear that cough I must take note of it—that there is an increasing desire across our nation for a different growth model for our economy. The hon. Member for Stroud referred to an alternative. We need a good alternative that can be successful, and this is the one: one in which the interests of workers and people are not overlooked, but rather are to the fore; one in which there is a greater sense of partnership between all the actors in our economy. Co-operatives and mutuals are already an incredibly important part of our economy, and they can be greater still. Northern Ireland is an example of their importance. I join Members in all parts of the House in recognising their existing contribution, and calling on the Government—and the Minister in particular—to work with the sector and help it to grow even more and benefit more people.

Bus Services: Greater Manchester

Debate between Jim McMahon and Jim Shannon

Monday 4th March 2019 Commons Chamber

[Jim McMahon]

That is a really important point. By and large, someone living within 5 miles of Manchester city centre on a main road will probably get a reasonable bus service, and there will be quite a lot of competition for it. But for someone who lives off a main road, on an estate, the chances are that their route has been cut or cancelled completely. For many people—particularly those who live on estates on steep gradients—that can mean that they are completely cut off from access to good bus services and do not leave the house. People have experienced that in Royton and parts of Chadderton where bus services have been taken away. I thank my hon. Friend for her intervention.

The current system unfortunately sees Greater Manchester in a clean air crisis, with pollution causing around 1,200 premature deaths a year. That is across all transport, not just buses, but it is important that we try to get people on to sustainable, environmentally-friendly transport, not just to get to work and college but to save lives.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for giving way. As I said to him before the debate, Translink has spent a substantial amount of money on new buses in my constituency. Those buses are environmentally friendly, but they are also disabled-friendly. It is so important that we give the opportunity of rural and urban bus travel to people who are not able to access normal buses. Does he see that as one of the things that the Government should pursue in his constituency?

[Jim McMahon]

Madam Deputy Speaker, I cannot tell you how reassuring it is in these crazy parliamentary times to have an intervention from the hon. Member for Strangford (Jim Shannon); it gives a lot comfort. That is a really important point. Disabled people find it difficult to leave the house, and they have to contend with not only buses but, when they get off the bus, the shops, department stores and supermarkets that are not accessible. What we can do as a public service is ensure that public transport is accessible, to connect them as much as possible with our towns, city centres and villages. I appreciate that intervention.

As I have said before, we cannot address the clean air crisis if we do not address the bus crisis. Over the past 10 years, we have lost 32 million bus journeys every year in Greater Manchester. That is a staggering number of journeys being diverted. I should say, out of balance, that that is partly because there has been significant investment in our tram system, so some people will choose to use the tram rather than the bus network, but that still does not account for the 32 million. We have seen a significant shift, and too many people rely on their private cars to get to work because bus services just are not good enough.

As a result of commercial decisions or because bus subsidies have been cut due to local councils having their budgets cut—of course, subsidised routes are funded by council tax through the transport levy, so if the council budget is cut, transport naturally gets cut, too—many communities have seen routes reduced or cancelled completely, cutting off entire communities. Many older and vulnerable people are now isolated. At the same time, we have seen the cost of travel increase. Ticket fares have increased by over 55% above the rate of inflation in the same period. How can it be right that we are losing 32 million bus journeys a year, but the cost has increased by 55% over the rate of inflation? People are paying from both sides—through increased subsidies to operators and through poor services, and they are then charged on top of that. I pay credit to the Better Buses for Greater Manchester campaign, which provided that data.

Given the north-south divide in Greater Manchester, it is more expensive generally to travel across the city. If someone needs to make a bus journey that requires more than one operator, they have to use what is called a system one ticket, which is a multi-operator bus ticket. That costs £5.80 a day or £19 for a weekly ticket, often for people who are on the minimum wage and struggling to get by. We should compare that to what we pay for bus travel in London. Someone who needs to use multi-modal transport—say, the bus and the tram—will pay £9 a day or £38 a week. If we compare that with the same ticket in London, where someone wants to use a bus and the tube, they will pay £21.20. It is £38 in Greater Manchester, but £21.20 in London, so weekly tickets are more expensive—179% more expensive—in Greater Manchester than in London. Quite literally, passengers in Greater Manchester are being taken for a ride.

Greater Manchester Metrolink

Debate between Jim McMahon and Jim Shannon

Tuesday 20th March 2018 Commons Chamber

[Jim McMahon]

Councillor Fender has been a real transport inspiration for many people in Greater Manchester. He is actually a very quiet and reserved character; he is not somebody who grandstands—who seeks attention. He works in the background and diligently gets on and does the work that is very complicated, often very technical, and requires a lot of time and dedication. I have absolutely no doubt that without the time that he put in to transport in Greater Manchester—not just the tram system but the bus network, and cycling routes especially—it would not be as advanced as it is. I think that is a very fitting tribute. I thank my hon. Friend for that intervention.

Greater Manchester’s tram network opened in 1992 and is now the UK’s biggest light rail network. It is essential to Greater Manchester’s economy. We know how important transport is. It is important to get people from A to B, but it is also essential to do so efficiently, to make sure that we reduce congestion, that people can get to work affordably, and that there are routes that take people where they need to go for their employment or for leisure. People vote with their feet. The light rail system in Greater Manchester carries 41 million passengers every year. It covers 60 miles over 93 stops. However, as always in Greater Manchester, we are not content to stand still. We want to go even further.

At the moment a new line is being built to Trafford Park, and that will provide fantastic connectivity to one of Europe’s largest employment sites. People across Greater Manchester will be able to travel through the city centre and on to Trafford Park, and capitalise on the jobs that are being created there. That builds on the success of the airport line, which will take people to Manchester Airport, one of our enterprise zones—also essential for getting people to decent, well paid, secure jobs, particularly now, and in the future too.

[Jim Shannon (Strangford) (DUP)]

I am ever mindful that the Government have committed to reducing pollution levels massively in our cities. Does the hon. Gentleman agree that a working, modern, technology-friendly public transport system is essential for Manchester and other cities like it, and that the expansion of services into the south will attract more people into using the service, making it more effective, and therefore cost-effective, and benefit the environment as well?

[Jim McMahon]

That is a very important point about the benefits for the environment and the economy. At one point, I was slightly fearful that we were going to make a claim for an extension over to Northern Ireland, which would be a great day out, but I might struggle to—

Universal Credit Sanctions

Debate between Jim McMahon and Jim Shannon

Monday 4th December 2017 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I am grateful to the hon. Gentleman for giving way at this late hour of the day, or this early hour of the morning—whatever it might be.

The issues that the hon. Gentleman is describing are United Kingdom-wide. A report from the Central England Law Centre shows that UC sanctions are three times greater than other sanctions. Does the hon. Gentleman agree that that is a worrying trend that affects all constituencies throughout the United Kingdom of Great Britain and Northern Ireland?

[Jim McMahon]

That is an important intervention. The Department for Work and Pensions’ own error statistics show that the error lies within the DWP. In 2016-17, claimant error was 1.8% and official error was 4.9%. When claimants are doing what is asked, the margin of error is marginal, so it is the official errors that are sending people into severe debt and often poverty, and, all too often, to the food bank.