Co-operative and Community Benefit Societies (Environmentally Sustainable Investment) Bill

Debate between Kevin Hollinrake and Andrew Lewer

2nd reading & 2nd reading: House of Commons
Friday 11th September 2020 Commons Chamber

[Andrew Lewer]

The hon. Lady will be pleased to hear that I will say several things in support of the principles underlined by her and which other colleagues have touched on.

While the Bill seeks to add to the track record of this Government and previous Governments, there are several issues within it that that cannot be ignored. Some of those worry me, and although I see elements of merit in the Bill, I am hesitant about it for reasons that I will address, dealing with some of the specifics rather than only outlining problems overall for the sector, which may lead to the Minister’s scribbling out too much of his speech.

As I mentioned, co-operatives and community benefit societies add to the diverse make-up of the UK economy and are in many cases successful, with more than 72% of co-ops still flourishing after a difficult first few years, in comparison to 43% of companies overall. Those businesses are therefore a cornerstone of the UK’s economy, particularly its social economy, and have the benefit of helping to push sustainable economic development and investment in green sectors. That should be celebrated and encouraged. Many across the House will share their ambition.

[Kevin Hollinrake]

My hon. Friend outlines some of the benefits of co-operatives. Is he aware that in many countries the banking sector is largely provided through co-operatives, including Germany and the USA, and that those banks provide much more sustainable long-term thinking and patient capital to help small and medium-sized enterprises through financial crises? If the Government decide to lead us down that route in terms of diversifying our banking sector, would he support that?

[Andrew Lewer]

I think that business models that are rooted in their communities and have the wellbeing of those communities at their heart, while enabling individuals to be enterprising within them, are very beneficial, particularly in having the value of local knowledge of what will be a success, rather than simply a balance-sheet approach.

Investment in emerging green markets and technologies, in line with Government green investment strategies, can be beneficial and should be encouraged, but they are not without their own risks, and that is one of my worries. Investors must be aware that there are risks associated with green shares, as there are with any shares. My worry—and that, I believe, of some of my colleagues—is that the well-intentioned ethical ambitions attached to this instrument may expose them to risks that they may not have foreseen. I am concerned that the Bill exposes the co-operative sector to the unintended risks of being exploited as investment vehicles, rather than purpose-driven organisations. There is a balance to be struck there.

As with many of these societies and co-operatives, people have saved up for years to invest their savings in capital, and I want to ensure that they do not underestimate the associated risks of green shares proposed by the Bill. Just because it has the word “green” attached to it does not mean that it is a guaranteed way of making money or is a sensible investment. Although it is probably a slightly politically incorrect cross-reference in the context of this debate, I am reminded of the car industry. People often muse, “If only I’d invested massively in the car industry in 1900, I’d have made a fortune.” Actually, nearly all the car companies that were founded in 1900 led to a loss for their founders, because only a few of them prevailed. Although the overall concept of investing in the automotive industry in 1900 was good, it actually led to a lot of people losing a lot of money.

Education (Guidance about Costs of School Uniforms) Bill

Debate between Kevin Hollinrake and Andrew Lewer

2nd reading & 2nd reading: House of Commons
Friday 13th March 2020 Commons Chamber

[Kevin Hollinrake]

We had a similar thing: little yellow or green badges that we could stick on our uniform. The guidance illustrates this. A school in Cumbria allowed students to put their house logo on their jumpers, but they were stitched on, so they could be taken off, with the jumper given to a brother or sister, a relative or whatever. Uniform can therefore be branded with a school motto or house logo without it costing parents too much.

[Andrew Lewer]

It can. I put a big question mark next to this section of my speech in case it instigated a wide range of people’s recollections of various kinds. However, I have been pleased to hear those from Members. I do want to mention Duston School in my constituency, led by the no-nonsense head, Sam Strickland.

An aversion to philosophy and a preference for pragmatism has overall served this country well, in contrast to some others, right back to the glorious revolution of 1688. That aversion is echoed in Lord Palmerston’s statement in Parliament in 1864:

“We cannot go on adding to the statute book ad infinitum.”

Lord Palmerston was not necessarily prescient there, considering the amount of statute that has been passed since. But it in no way detracts from the concerns of Members across the House on a whole range of issues, including this one, not to wonder sometimes whether regulation is always the answer and whether we benefit from being what groups as diverse as The Economist, the Institute of Economic Affairs, the Centre for Cities and the Institute for Public Policy Research regard as the most centralised state in the western world. That is a question for Government—especially a Conservative Government with a healthy majority—to ponder henceforth.

However, with this legislation, we are where we are. To seek comfort, I ask the Minister to address three matters. First, will the schoolwear sector be fully consulted and have its role respected as guidance goes out for consultation? Secondly, will sole-supplier arrangements be allowed when there has been tendering? Thirdly, will the key consideration be value for money? In tendering, quality of product can be a consideration as a better way often of saving parents money than the pure sticker price for a fast-fashion, not ethically sourced poor product that may wear out quickly.