Mobile Phone Signal (Fownhope)

Lord Lancaster of Kimbolton Excerpts

Tuesday 6th January 2015 Commons Chamber

[Nigel Adams]

I echo what the Minister says, because the best phone I ever had for making phone calls—after all, that is why we bought the things in the first place—was a P3 Nokia phone. I am not sure whether the Minister is old enough to remember the P3.

[The Lord Commissioner of Her Majesty's Treasury (Mark Lancaster)]

Do you still supply them?

[Nigel Adams]

We certainly do not still supply them, but I concur with everything the Minister has said.

Armed Forces (Recruitment Age)

Lord Lancaster of Kimbolton Excerpts

Tuesday 21st May 2013 Westminster Hall

[The Lord Commissioner of Her Majesty's Treasury (Mark Lancaster)]

It is a pleasure to be able to respond to this debate, and I start by congratulating the hon. Member for Stockton North (Alex Cunningham) on securing it. I acknowledge his genuine concern about the recruitment age for armed forces personnel and, in particular, the recruitment of those under the age of 18. I fondly recall serving with him on the Armed Forces Bill Committee a couple of years ago and to his credit he has been consistent in his view; he raised this issue then.

Let me begin, however, by reminding the House that there is no compulsory recruitment into the armed forces. All those under the age of 18 are volunteers and the Ministry of Defence takes pride in the fact that our armed forces provide challenging and constructive education, training and employment opportunities for young people while in service, as well as after they leave. The armed forces remain the UK’s largest apprenticeship provider, equipping young people with valuable and transferable skills for life.

I declare an interest, because I applied to join the Army before the age of 18. I went through a regular commissions board, and I made an informed choice to join the Army when I was still a minor. Although I did not attend Sandhurst until shortly after my 18th birthday—a short course for the type of commission I was undertaking—I recall my time in the regular Army while I was a teenager with great pride and a sense of satisfaction. That may in part be due to my posting to Hong Kong, but that is another matter.

I thought it would be useful for the House if I set out our recruitment policy. The minimum age for entry into the UK armed forces reflects the normal minimum school leaving age of 16, and although changes under the Education and Skills Act 2008 are being progressively introduced between 2013 and 2015, the minimum statutory school leaving age will remain at 16. Participation in education or structured training will be mandatory until 18. In the services, all recruits who enlist as minors and do not hold full level 3 qualifications are enrolled on an apprenticeship scheme unless their trade training attracts higher level qualifications. All undertake structured professional education as part of their initial military training and therefore automatically fulfil their duty to participate under the new regulations. No change in policy is required.

Many individuals who join under the age of 18 are not academically high achievers and the duty of care and the training that the armed forces provide enhances their self-esteem and prospects for their whole working life, within or without the services.

[Alex Cunningham]

I think I omitted this part of my speech, but I wonder whether the actual educational outputs for young soldiers are poor. What will the Government do to drive up the amount of education, so that they have transferable skills when they leave the armed forces? We find that so many of them do not have those skills.

[Mark Lancaster]

I am afraid I disagree with the hon. Gentleman. In my experience as a Royal Engineer, I commanded some young soldiers. The standard of the training in the secondary skills they obtain, be it in bricklaying or plumbing or as an electrician, was second to none. I experienced that first hand, so I do not agree with his point.

[Patrick Mercer]

I am grateful to the Minister for allowing me to intervene. While I absolutely applaud many of the sentiments expressed by the hon. Member for Stockton North (Alex Cunningham), not least the financial argument, which I partially buy, does my hon. Friend the Minister agree that it is difficult to recognise the element of despair that the hon. Gentleman brings into his arguments? It is as though these individuals have no choice and their backgrounds are so dreadful that it is either prison or the street. It is as though the Army is a bad alternative to those things. My experience commanding junior soldiers and regular adults was just the opposite. Juniors in particular were treated with kid gloves and not a single soldier in the infantry ever went on operations if they did not want to.

--- Later in debate ---

[Mark Lancaster]

My hon. Friend makes a powerful point, which I agree with. I fully respect the position of the hon. Member for Stockton North, but, with the greatest respect to him, I am not sure that his concerns are borne out by our experiences of service within the armed forces. I will return shortly to the point, not least the cost-benefit aspect.

We fully recognise the special duty of care that we owe to under-18s, and commanding officers have had that made clear to them. Our recruiting policy is absolutely clear. No-one under the age of 18 can join the armed forces without formal parental consent, which is checked twice during the application process. In addition, parents and guardians are positively encouraged to engage with the recruiting staff during the process. Once accepted into service, under-18s have the right to automatic discharge as of right at any time until their 18th birthday, as the hon. Member for Stockton North said. All new recruits who are under the age of 18 and have completed 28 days’ service have a right to discharge within their first three to six months of service if they decide that the armed forces is not a career for them. All service personnel under the age of 18 have the right to leave the armed forces before their 18th birthday, following an appropriate cooling-off period. It is not in the interests of either the individual or the services to force them to stay where they are not happy.

MOD policy is not to deploy personnel under the age of 18 on operations. Service personnel under the age of 18 are not deployed on any operation outside the UK, except where the operation does not involve them becoming engaged in or exposed to hostilities. I am aware of instances where minors have inadvertently entered operations, but on those occasions we have taken immediate action to correct any breach of policy as soon as it has been discovered.

The total number of armed forces personnel under the age of 18 was 3,130 in 2011-12. The majority of them were in training. That figure breaks down to 90 in the Navy, 2,930 in the Army and 110 in the Royal Air Force. There is evidence to suggest that those joining at a younger age remain in service for longer and that under-18s in the Army achieve higher performance based on their earlier promotion. For example, when we looked at the 2001 intake of junior entrants, we found that the number still serving after six years was 44%, compared with only 33% of those who joined when they were over the age of 18. For the same intake, 23% of junior entrants reached the rank of lance-corporal or corporal, compared with 16% of the standard entry cohort. Figures for other cohorts reinforce that picture. Evidence clearly shows that junior entrants are likely to serve longer and to achieve higher rank than some senior entrants, so the additional costs incurred in their training reap considerable benefits for the service, the individual and society as a whole. As the hon. Gentleman said, that additional cost is recouped because, generally, the individual remains in service for longer: an additional three years for the infantry, four years for Royal Engineers, Royal Signals and Army Air Corps, and 10 years for the Intelligence Corps and the Corps of Army Music.

I am sure that some Members are aware that the services are among the largest training providers in the UK, with excellent completion and achievement rates. Armed forces personnel are offered genuine progression routes, which allow them to develop, gain qualifications and play a fuller part in society, whether in the armed forces or in the civilian world. In the naval service and the Royal Air Force, initial military training is conducted on single sites and, because of the smaller scale, no distinction need be made in the training provided to those under age 18. In the Army, phase 1 training for under-18s, the basic military training course, is completed at the Army foundation college, where the facilities have been specifically designed for this age group. The training courses last either 23 or 49 weeks, both of which are longer than the basic over-18s course, dependent on the length of subsequent specialist training. Since junior entrants are likely to serve longer and achieve higher rank than some senior entrants, as discussed, the additional costs incurred can reap long-term benefits.

Our duty-of-care policy for under-18 entrants is laid down in a defence instruction and covers the duty-of-care obligations of commanding officers, together with welfare, mentoring and discharge regulations. This is a comprehensive document, setting out for the chain of command the many aspects of a commanding officer’s responsibility for addressing the particular issues that can affect those under the age of 18. It makes clear that the care and welfare of under-18s require particular attention by the chain of command. It refers to the supervisory care directive, through which commanders are to set out for their environment, based on risk assessments, the processes that are to apply in caring for the particular vulnerability of young recruits. Commanders are to ensure that they comply with the wider legislation, which prohibits under-18s from purchasing or consuming alcohol, from gambling or from purchasing cigarettes and tobacco. Commanders are to ensure that they maintain appropriate contact with parents and guardians, and not only when there is the possibility that the recruit wishes to leave the service. The policy is regularly reviewed, to ensure in particular that it keeps pace with changes in legislation as they affect young people.

All recruits enlisted as minors who do not hold full level 3 qualifications are enrolled on an apprenticeship scheme, unless their trade training attracts higher-level qualifications. The time taken to complete the apprenticeship varies according to the programme being followed, but completion rates are high. There are two levels of apprenticeship: intermediate, which is equivalent to GCSEs at grades A to C; or advanced, which is equivalent to A-level. Additionally, while in service, all armed forces personnel, subject to meeting certain qualifying criteria, can claim financial support for education under the standard learning credit scheme and the enhanced learning credit scheme.

Inevitably, some recruits leave the armed forces after a relatively short period. All service leavers, regardless of their length of service, can attend housing and financial management briefings to assist their transition to civilian life. In addition, those with less than four years’ service are entitled to advice on the type of state and voluntary and community sector assistance available to them post-discharge. I am aware of the criticism made of the support available to armed forces personnel who decide to leave. In recognition that we can do more for early service leavers, an enhanced package of resettlement for those having served less than four years has been trialled. Those trials have recently ended and the results are being evaluated. The evaluation will help to decide what resettlement provision for early service leavers should be made available. Furthermore, all service leavers, regardless of how long they have served, are entitled to lifetime job-finding support through either the Officers’ Association or the Regular Forces Employment Association.

In conclusion, it is important to state that under-18s who choose to join the armed forces are an important and valuable cohort among those starting their military career. We invest strongly in them and they repay that investment with longer service and high achievement. The duty of care for that cohort is paramount, and we are regularly inspected by Ofsted. Their training and education are clearly first class, and our policies on under-18s in service are robust and comply with national and international law. We remain fully committed to meeting our obligations under the UN convention on the rights of the child optional protocol on the involvement of children in armed conflict. The armed forces provide prestigious and respected career opportunities for young men and women who may not have achieved the same in civilian life. We shall not deny them that opportunity.

Autumn Statement

Lord Lancaster of Kimbolton Excerpts

Tuesday 29th November 2011 Commons Chamber

[Mr Osborne]

I can give that confirmation. This is additional money that has come from savings in current spending. Specifically on the northern hub, the first part of that is the electrification of the Manchester to Leeds trans-Pennine express, but that will also benefit train travel times from Liverpool across the Pennines. We have also made other improvements like the Ordsall chord, which will help. We want to go further on the northern hub and the Department for Transport will produce proposals on that early next year.

[Mark Lancaster (Milton Keynes North) (Con)]

Mr Speaker, you, I and many other hon. Members have campaigned long and hard for east-west rail and today’s announcement is tremendous news for Milton Keynes. As the Transport Secretary is in her place, can my right hon. Friend the Chancellor confirm the possibility that we will have east-west rail and, at the junction between east-west and High Speed 2, could there perhaps be a Buckinghamshire Parkway station so that residents of Buckinghamshire could enjoy the benefits of High Speed 2 as well as the pain?

[Mr Osborne]

I do not think that a decision has been taken on stations, but I agree with my hon. Friend that we need to bring home to the people of Buckinghamshire the benefits of high-speed rail.

Eurozone Crisis

Lord Lancaster of Kimbolton Excerpts

Thursday 3rd November 2011 Commons Chamber

[Mr Hoban]

I do not think anyone in this House is suggesting that we interfere in the decisions to be made by the Greeks.

[Mark Lancaster (Milton Keynes North) (Con)]

What would be the consequences of the UK failing to pay its IMF subscription?

[Mr Hoban]

We would lose our seat on the IMF board; we would lose credibility in international economic debates; and we would lose our influence on measures to solve global economic problems. We would become marginalised—rather like Labour Members when it comes to their contributions to economic debates.

Oral Answers to Questions

Lord Lancaster of Kimbolton Excerpts

Tuesday 6th September 2011 Commons Chamber

[Mr Osborne]

We are looking specifically at the impact not just of the carbon floor price but of all the other environmental policies of recent years on energy-intensive industries. I hope, in the autumn forecast at the end of November, to give the House an update of what we propose to do to help.

[Mark Lancaster (Milton Keynes North) (Con)]

T3. As we approach its first anniversary, is the Chancellor happy with the performance of the Office for Budget Responsibility?

[Mr Osborne]

Yes, I am happy with the performance of the OBR, because we have created a new institution in Britain that produces independent fiscal and economic forecasts. The absolutely astonishing revelation of the former Chancellor’s memoirs was how—[Interruption.] Let me tell Labour Members this: that book has not even been published yet, but they will be hearing a lot more about it in the months ahead, because it reveals the truth, not just about the last Government but about how the current shadow Chancellor operated in the last Government—the poisoned politics, the paralysed Government and the lack of a credible economic policy.

Summer Adjournment

Lord Lancaster of Kimbolton Excerpts

Tuesday 19th July 2011 Commons Chamber

[Mark Lancaster (Milton Keynes North) (Con)]

Thank you, Mr Deputy Speaker. You may not have heard of the drug khat—indeed, many people in the United Kingdom have not—but it is a plant that is grown in the middle east and Africa whose leaves are chewed among Somali, Ethiopian and Yemeni communities here. Its effects are similar to those of better known substances, such as amphetamines. Khat is a stimulant, creating euphoria. Like nicotine, it is highly addictive; like cannabis, it is linked to mental health conditions; yet unlike those drugs, khat is not controlled in this country. Despite its physical effects, including liver and kidney problems and mouth lesions, it is neither classified nor regulated. Yet khat’s main component, cathinone, is a class C drug —the same cathinone that is found in mephedrone, the drug that this House was so quick to act on last year. Khat is illegal in 16 European countries, as well as in the United States and Canada. It is legal in Holland, but regulated.

However, rather than the physical effects, it is the social impact that many ethnic communities in the UK are railing against. Khat can easily become a way of life. One former addict in my constituency described his routine: waking at 3pm, buying the leaves from a local house or car boot, and assembling in a local living room, or “khat house”, with around 20 others to begin an eight-hour session of chatting and chewing—a bit like the House of Commons. The inevitable come-down involves many users sleeping all day after a session before resuming the routine. Unsurprisingly, unemployment is rife in such communities. The habit perpetuates a lack of integration on those diverse estates and creates tensions. I have had complaints from residents about the obstruction caused by people queuing for khat, about night-time disruption and about intimidation from nocturnally high neighbours.

Meanwhile, family breakdown is often fuelled by khat. The financial strain increases the problem in deprived areas. Although khat costs only £3.50 a bunch, up to four are required per session, so the habit can cost £98 a week. Abandoned mothers and community leaders, and even users themselves, are crying out for something to be done.

The problem might come as news to many people, but it is certainly not new to Parliament. It was first raised in 1996, when the then Government said that they were monitoring the issue. In 2011, we are still monitoring it. Meanwhile, the problem continues to grow. Usage has risen with immigration, with the UK Somali population doubling in a decade. The way in which khat is used is also shifting. In its countries of origin, elders chew it on special occasions, but in Europe, contemporary patterns of consumption are excessive. Anecdotal evidence suggests that consumption is spreading to women, teenagers and even indigenous residents on our diverse estates.

The Advisory Council on the Misuse of Drugs considered classifying khat in 2005, but declined to do so because its prevalence in the UK was relatively low. Therefore, while the plight of those addicted to cocaine, cannabis or alcohol is well documented, the fate of those who are under the spell of khat rarely comes to light. The European Monitoring Centre for Drugs and Drug Addiction has stated that

“khat use is both common and commonly overlooked”.

It has 20 million users worldwide. It is thought that about 7 tonnes of khat are imported into the UK each week, but we do not have a full picture of its effects, as the police do not collect data on khat, and hospitals do not collect admissions statistics related to the drug.

Those omissions need to be rectified. While that is being done, with a view to possible classification of the drug in future, will the Minister tell us whether he believes that, after 16 years of inaction, the time has come to regulate khat as a first step? If sellers required a licence, antisocial behaviour problems would be reduced. A minimum age for purchase would stop the drug’s popularity spreading to youngsters, and it would at last register on the Government’s radar.

Coinage (Measurement) Bill

Lord Lancaster of Kimbolton Excerpts

Friday 1st April 2011 Commons Chamber

[Mark Lancaster (Milton Keynes North) (Con)]

I beg to move, That the Bill be now read the Third time.

Although today is April fools’ day, I can assure hon. Members that the Bill is no joke. It is relatively simple, but it will have a weighty impact, for it enables the Royal Mint to commemorate events of cultural significance and national importance with kilogram coins, starting with, but not limited to, the London 2012 Olympic and Paralympic games. Indeed, the only question raised in Committee was from the hon. Member for Dundee East (Stewart Hosie), who queried whether the Bill will enable future events such as the Commonwealth games to be similarly commemorated. The answer, of course, is that it will do so, subject to the permission of Her Majesty and the agreement of the Chancellor.

By making two small amendments to the Coinage Act 1971, the Bill removes a technical obstacle that currently prevents the Royal Mint from striking kilogram coins. The Act governs the striking of coins by the Royal Mint and contains various standards in respect of a coin’s weight, fineness, composition and dimensions, with which coins struck by the Royal Mint must comply.

The Act also makes provision for permitted variations from those standards. Section 1(6) requires that the variation from the standard weight of any coin be measured as the average of a sample of not more than 1 kg of that coin. As I have said before, that is perfectly fit for the everyday coins that we have in our pockets, but in the competitive collector-coin market it is important to be able to push the boundaries and exploit growing technical capabilities and expertise to develop new and exciting products that will provide an enduring and lasting way of commemorating special events.

The Royal Mint intends to strike the coins in fine gold and in fine silver. They will have a standard diameter of 10 cm, and will weigh 1 kg. The coins will be legal tender, although their inherent metal value will far outweigh their nominal face value, which will be £1,000 for the gold coins and £500 for the silver coins. Their retail price will be heavily dependent on metal prices at the time of release. The choice of design will ultimately be a matter for Her Majesty the Queen and the Chancellor of the Exchequer, on the advice of the Royal Mint advisory committee on the design of coins, medals, seals and decorations.

The striking of kilogram coins has recently become part of the Olympic games tradition. Most other host nations in recent years, such as Australia, Canada and China, have issued coins of this type, and they have proved extremely popular with collectors internationally. Indeed, kilogram coins have featured in the international commemorative coin market since they were first issued in 1992. In the past 10 years, more than 40,000 Olympic kilogram coins have been issued around the world, and their ongoing popularity makes them an important addition to any international mint’s commemorative coin range. Not only are these coins highly attractive to numismatists across the world, but due to their size and the high-profile artists who will be approached to design them, they become works of art as well as an investment opportunity.

[Mr Peter Bone (Wellingborough) (Con)]

Obviously the word “kilogram” makes me slightly nervous, because it is not really British. However, my hon. Friend was referring to the other countries that have done this. When the Olympic games were held in America, did the Americans issue a kilogram coin?

[Mark Lancaster]

That is a good point. I have some sympathy with my hon. Friend over the use of the word “kilogram”, but he will appreciate that the coins would be sold on the international market, which is why a kilogram coin is more appropriate. There seems to be some doubt about whether the United States issued such a coin. I think that it did, but I might have to come back to him. Inspiration might arrive before I finish my speech.

The Royal Mint anticipates similar demand for kilogram coins for London 2012, and plans to produce approximately 60 gold coins and 14,000 silver coins. This plan is based on more than 50 years’ experience in the international commemorative coin market. The Royal Mint also attends regular international seminars with other mints, numismatists, collectors and trade partners, from which it is clear that there is a sizeable international market for kilogram coins. In anticipation of the London 2012 Olympics, the Royal Mint has put together an Olympic coin programme that, if this Bill is successful, is likely to be the largest ever seen.

This Bill will allow the Royal Mint to produce kilogram coins that will form the pinnacle of the programme. It has been endorsed by Jacques Rogge, President of the International Olympic Committee, who wrote:

“I have no doubt that the Royal Mint’s Olympic Coin Programme will continue the worldwide success story of Olympic coins, and will take its place in the Olympic Museum at Lausanne alongside the 700 or so Olympic Coins of past years”.

The Bill will allow the Royal Mint to crown its Olympic coin programme with kilogram coins, but they are just part of a range of products designed to offer something for everyone. By providing royalties to the London Organising Committee of the Olympic Games and Paralympic Games, the kilogram coins will contribute to financing London 2012. I understand that royalties will also be paid to the Treasury.

The Olympic coin programme in its entirety has been designed to ensure the widest possible participation. Design competitions have been run for “Blue Peter” viewers, for secondary school children, for art and design college students, and indeed for members of the public in general. The intention throughout has been to maximise the social and educational benefits of the programme. At the other end of the scale to the kilogram coin is the London 2012 sports collection, which features 29 50p pieces, each representing a different Olympic or Paralympic sport. Indeed, I thought that the hon. Member for Bristol East (Kerry McCarthy) was slightly cruel to me in Committee when she suggested that each coin should have a picture of me doing different decathlon events, whether the discus, javelin, the 100 metres, or perhaps even the 800 metres. I fear that that will not be the case.

The Royal Mint launched a competition inviting the British public to design the 50p sports series, and received more than 30,000 entries. The athletics 50p was designed by the nine-year-old winner of a “Blue Peter” competition—the first child ever to design a UK coin. Of particular relevance to my own constituency, the goalball 50p was designed by a Buckinghamshire artist, Jonathan Wren. I am pleased for the opportunity to be sponsoring a Bill that has wide-reaching implications for the whole UK and beyond. My constituency is home to one of the Olympic training villages—and indeed was the birthplace of the Paralympic games—so this Bill further cements a long-standing and important association between my constituency and the London 2012 Olympic and Paralympic games. I am grateful for the swift passage and warm welcome the Bill has enjoyed throughout the House to date, and I would like to thank hon. Members for their support so far. I commend the Bill to the House.

--- Later in debate ---

[Mr David Nuttall (Bury North) (Con)]

I congratulate my hon. Friend the Member for Milton Keynes North (Mark Lancaster) on piloting the Bill so swiftly through its stages in the House. I should like to make a couple of points following on from the remarks made already.

My first comment concerns the value that the coin will bring to the Treasury. I understand that there are to be two coins—a gold coin with a face value of £1,000, and a silver coin with a face value of £500. I also understand that 60 of the gold coins and an estimated 14,000 of the silver coins are to be minted. The value of the coins will depend on the prevailing cost of precious metals, but if we were to base the cost on the best current estimate, a gold coin is likely to fetch about £40,000 and a silver coin about £500. Taking those together and doing a quick bit of maths, that makes £19.9 million—not bad for a morning’s work—which I am sure would be gratefully received by the Treasury. Indeed, I understand that 20,000 coins were sold in the Beijing Olympics, so I wonder whether there might be scope for minting more than is currently allowed for.

[Mark Lancaster]

I fear that the figure might even be slightly larger than my hon. Friend realises. The estimated retail value of the silver coin will actually be £1,250.

[Mr Nuttall]

In that case the amount from the silver coins would be more than doubled, and there are more of them as well.

Let me turn to the size. On Second Reading I mentioned my disappointment that the coins were to be minted in kilograms, and suggested that they be minted in a multiple of a troy ounce. It was said that the coins are for the international market. If the object of the enterprise is to raise as much money as possible for the Treasury, the coins might be worth even more—with more collectors for them, raising even more money for the Treasury—if they are minted as a multiple of a troy ounce, because of their rarity on the international market.

Mention has been made of the suggestion made in Committee that the coin should perhaps bear an image of my hon. Friend in an athletic pose. He has been very modest today, because he has not mentioned the fact that, as he told the Committee, on the weekend before it sat he did his combat fitness test for the Army, running 8 miles while carrying 25 kg on his back. That is no mean feat, and I am not sure that many of us in the Chamber this morning could do that.

[Mr Nuttall]

That is a good point.

[Mark Lancaster]

I wish they had been.

Oral Answers to Questions

Lord Lancaster of Kimbolton Excerpts

Tuesday 22nd March 2011 Commons Chamber

[Mr Gauke]

To be fair, if we wanted to reduce tax on fuel through the VAT rate that is exactly what we would have to do, so perhaps that is not the best way of doing it.

[Mark Lancaster (Milton Keynes North) (Con)]

14. What recent representations he has received on measures to reduce the budget deficit.

[The Financial Secretary to the Treasury (Mr Mark Hoban)]

The Government have received a number of representations for the Budget referring to the need to reduce the budget deficit. In addition, the Government’s strategy has been endorsed by a number of organisations, including the OECD, which said in January that the Government should

“stay the course…The fiscal situation in the UK absolutely requires this approach”.

[Mark Lancaster]

The Government’s plan to eliminate the deficit by 2015 is in stark contrast to the Darling plan, which was simply to reduce it by half. What assessment has the Minister made of the likely impact of the Darling plan on the level of debt and the cost of servicing it?

[Mr Hoban]

If we had continued with the previous Government’s deficit reduction plan, debt would still be rising in 2015, not falling, meaning that we would have to spend an extra £3 billion in one year on debt interest while still having to make spending cuts. The lack of ambition in the previous Government’s plan put our credit rating at risk, thus threatening the prospect of higher interest rates and putting a brake on the recovery.

Coinage (Measurement) Bill

Lord Lancaster of Kimbolton Excerpts

Friday 4th February 2011 Commons Chamber

[Mark Lancaster (Milton Keynes North) (Con)]

I beg to move, That the Bill be now read a Second time.

I am grateful for the opportunity to present the Coinage (Measurement) Bill to the House. Hon. Members may not be aware that coins have a special resonance for my constituency of Milton Keynes North. Despite being a very modern city, Milton Keynes is an area of rich historical findings that span a timeline of approximately 4,000 years. Indeed, it was near Milton Keynes that possibly the oldest known gold coin in Britain, a gold stater from the second century BC, was discovered. Numerous discoveries of iron age, bronze age and Roman coins have been made in Milton Keynes and the surrounding area. It is exactly that sort of historical legacy that the Bill is intended to address.

My two-clause Bill would make a minor technical amendment to the Coinage Act 1971, which governs the striking of coins by the Royal Mint and contains various standards in respect of weight, fineness, composition and dimensions that coins struck by the Royal Mint must comply with. It also makes provision for permitted variations from those standards. Section 1(6) requires that the variation from the standard weight of any coin

“be measured as the average of a sample of not more than one kilogram of that coin.”

That is perfectly fit for the purpose for which it was originally conceived. The current weights of UK circulating coins range from the 5p coin at 3.25 grams to the £2 coin at 12 grams, so a sample of a kilogram would contain 307 5p coins or 83 £2 coins, an ample number to fulfil the requirement to measure average weight. Having seen the Royal Mint’s impressive production line in action on Monday, with presses that typically strike about 750 coins a minute with less than 0.08 mm variance in diameter and less than 0.238 grams variance in weight, I know that a sample of kilogram is therefore a perfectly reasonable measure of the tolerated variation from the standard weight. It was not until 1992, 21 years after the Coinage Act was introduced, that the first 1 kg coin was minted.

Members may well be interested to know what the environmental impact of minting coins is. All the Royal Mint’s operations are conducted under an environmental management system certified to ISO 14001, the internationally recognised standard for the environmental management of businesses. It prescribes controls for activities that have an effect on the environment, including the use of natural resources, the handling and treatment of waste, and energy consumption. Furthermore, in June last year the Royal Mint became the first mint in the world, and the largest UK manufacturer, to achieve SA 8000 accreditation, the international standard for socially responsible businesses.

Circulating coins is just one part of the Royal Mint’s business, and as with all good businesses, it is constantly seeking to evolve, expand and explore new technologies and commercial opportunities. I am glad to see my hon. Friend the Economic Secretary to the Treasury in her place. As the Minister responsible for the Royal Mint and coinage policy, no doubt she will be able to elaborate on recent developments in the Royal Mint’s commemorative coin activities. From its 2009-10 annual report, I see that the commemorative coin division had a turnover of £89 million in that year, with an operating profit of some £5 million. That was due in part to the commencement of the London 2012 Olympic coin programme, with the 2009 £5 countdown silver proof and silver proof piedfort coins selling out.

The full range of 2012 Olympics products is available on the Royal Mail website, but some of the features of the coin programme are the countdown collection, the London 2012 sports collection, the “Celebration of Britain” collection and the “Gold Series: Faster, Higher, Stronger” set. On its current trajectory, and on the assumption that the Bill successfully completes its passage through this House and the other place and the planned kilogram coins are issued, the programme for London 2012 is on course to be the biggest Olympic coin programme to date.

[Christopher Pincher (Tamworth) (Con)]

My hon. Friend mentions the motto of the Olympics, “Faster, Higher, Stronger”, which I think in Latin is “Citius, Altius, Fortius”. Given that we are likely to have the heaviest coin ever circulated in the United Kingdom, would it be sensible to add “Gravius”—heavier—to the motto on the coins?

[Mark Lancaster]

I thank my hon. Friend for his excellent suggestion, and I think it probably would. Perhaps we should put that suggestion to the International Olympic Committee. I am sure that he would like the Economic Secretary to do that on his behalf, but we will see what she has to say about it.

That brings me to the purpose of the Bill. As part of the Olympic programme, the Royal Mint is keen to strike those kilogram coins that my hon. Friend the Member for Tamworth (Christopher Pincher) mentions. As I said earlier, the current wording of the Coinage Act would effectively prohibit that. It is not possible to measure the variation from the standard weight in the case of the proposed Olympic coins because the weight of each coin is likely to be equal to or greater than the 1 kg aggregate limit for a sample under section 1.

Clause 1 therefore amends the Coinage Act so that the variation from the standard weight can be specified by royal proclamation, for which section 3 provides. That would grant the flexibility to adjust the size of the sample for the purposes of the section 1(6) weight variation test. I am sure that hon. Members will appreciate that that removes a technical legislative obstacle to the proposed Olympic coins, allows the Royal Mint to continue to develop new and innovative designs and provides exciting opportunities to push coinage boundaries.

Striking kilogram coins has recently become part of the Olympic games tradition. Most host nations in recent years—for example, Australia, Canada and China— issued such coins, and they proved extremely popular with collectors internationally. The Bill would allow the Royal Mint to continue that tradition in commemoration of the London 2012 Olympic and Paralympic games.

The large size means that the kilogram coins will be an exciting, artistic and eye-catching part of the Olympic games. The intention is for them to be significant works of numismatic art. The Royal Mint will approach high-profile British artists to prepare the designs—that is already under way.

After royal and ministerial approval, a commitment to strike kilogram coins was given to the International Olympic Committee during the United Kingdom’s bid to host the 2012 games. If the Bill is not passed, the kilogram coin element of the Olympic coin programme will unfortunately have to be scrapped. The Royal Mint, in consultation with the London Organising Committee, would need to consider an alternative product to fill the gap in the programme. However, none of the alternatives would have anything like the appeal of the 1 kg coin. There is a global expectation that the Royal Mint and the London 2012 Olympic coin programme will follow in the footsteps of London’s predecessors.

[Mr Christopher Chope (Christchurch) (Con)]

Will my hon. Friend assure the House that none of the coins will be given free to members of the International Olympic Committee, who seem to go in for lots of freebies?

[Mark Lancaster]

My hon. Friend makes a valid point. I would like to think that that would be the case. It is my understanding that the coins will be put up for sale—and sale only.

The Royal Mint wants to ensure that the two commemorative kilogram coins will crown the range of coins. Judging from the reception of similar coins around the world, and after consulting representatives of the coin trade and collectors, the Royal Mint is confident that the UK kilogram coins will be well received—but hopefully not by the IOC.

[Iain Stewart (Milton Keynes South) (Con)]

I congratulate my hon. Friend on introducing the Bill. Does he agree that the coins, as well as being of interest to collectors around the world, could usefully serve as prizes for different communities, which will try to emulate the Olympic games by hosting, for example, inter-village competitions? A kilogram coin would be a fitting award to the community that triumphed in those sporting contests.

[Mark Lancaster]

My hon. Friend makes a powerful point. Indeed, the coins will be for sale, and there is an opportunity for doing what he suggests.

[Tom Brake (Carshalton and Wallington) (LD)]

The hon. Gentleman is making a serious case. Has he had any discussions with vending machine manufacturers about whether they would want to use the coin?

[Mark Lancaster]

There will be coins in the range that vending machine manufacturers may want to use, but I am not sure whether they will want 1 kg coins. That could prove something of a challenge and perhaps rather expensive.

[Christopher Pincher]

On the design of this coin—or should I say “paperweight”—is my hon. Friend aware of whether the College of Arms will be consulted over the design on the reverse? He might be aware that the college and its former head, Sir Peter Gwynn-Jones, were concerned about the design of the smaller coinage in 2008.

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[Mark Lancaster]

The Royal Mint has an advisory committee made up of a number of distinguished gentlemen and ladies in this field. I am not sure whether the College of Arms was consulted, but I am more than happy to find out and come back to my hon. Friend. We would like to think that the quality of these coins would be something of which the nation can be proud, and hopefully the committee will ensure that that is the case.

The Royal Mint proposes to make its kilogram coin from 22-carat gold and fine silver—so there would be two separate coins. They would be the largest ever UK coins, with a diameter of 10 cm and a face value of £1,000 for gold and £500 for silver. Based on demand from previous Olympic games, we anticipate minting 60 of the gold coins at an estimated cost of about £40,000, and 14,000 silver coins at an estimated cost of £1,250. However, the exact price of the coins will depend on the cost of gold and silver at the time.

[Christopher Pincher]

Will the coins be solid gold or mixed with baser metals? My hon. Friend might know the story that the first inflationist in our country was King Stephen, who debased the coinage in the 1140s—a rather inglorious path trodden by several Governments down the centuries, notably the Attlee, Wilson and Callaghan Governments. Will we have gold in our coins, or will they be debased?

[Mark Lancaster]

Having seen the production line for myself, I am confident that they will indeed be 100% gold and 100% silver. I would hate to think that what my hon. Friend describes would happen again, and after my visit I am quite confident that that will not be the case.

It may interest hon. Members to hear that there is a common misconception about the meaning of legal tender. The face value of the coins will be very different from the cost of buying them. The parties involved in a transaction are free to agree the means of payment, whether bank notes, credit card or other payment arrangements. However, in the absence of any such agreement, the creditor is entitled to require payment in legal tender. Conversely, the debtor is entitled to use it. Bank of England bank notes are legal tender in England and Wales, but not in Scotland or Northern Ireland. However, Scottish and Northern Irish bank notes are not legal tender anywhere in the United Kingdom. I see my hon. Friend the Member for Milton Keynes South (Iain Stewart) nodding. I am sure that he has suffered from this. Coin is also legal tender throughout the UK, although in most cases only up to certain specific limits.

The Olympic programme would generate royalties for London 2012 and the Exchequer, because the Royal Mint corporate entity is 100% owned by Her Majesty’s Treasury. Of course, the royalty payable would depend on sales and the final price of the coins, which will be determined by the price of gold, as I have said. However, as I mentioned, it is expected that demand will be similar to, if not greater than, that associated with previous Olympics. It is also important to note that the project is self-funding. The coins form just part of a wide range of products the Royal Mint is issuing to commemorate the 2012 Olympics. As Lord Coe, the London 2012 chairman, said in 2009:

“we’re thrilled to be working with the Royal Mint to commemorate three years to go. As the excitement builds over the next three years, it is fantastic to know that the Royal Mint will be alongside us, helping the whole country to join in with our celebrations.”

It is important to remember that the sporting, cultural and historical significance of London 2012 is not limited to the area within the M25 boundary. The athletes aspiring to compete under the Great Britain banner come from all over the United Kingdom. I would particularly like to recognise those from my own constituency and its environs: Greg Rutherford, Nathan Robertson, Bobby White, Joey Duck and Mervyn Luckwell are just a few of the Buckinghamshire athletes hoping to take part in the Olympic and Paralympic games in 2012. Furthermore, in recent weeks, my hon. Friend the Member for Milton Keynes South and I have been to a number of local events organised by Roger Fennemore and his wife, Sally, helping to raise funds for our local athletes and their training for the Olympic programme. I pay tribute to them. I am pleased that Milton Keynes has also been selected as the site of one of the 2012 Olympic training villages, owing to its strategic location and strong infrastructure, offering training for five Olympic and four Paralympic sports. Her Majesty the Queen planted the first tree on the Olympic park—next to the waterways, adjacent to the stadium—a mature willow tree grown in Milton Keynes, the first of more than 300 that will be planted on the stadium site.

[Iain Stewart]

My hon. Friend makes an important point about the significance of the Olympic games to towns, villages and cities throughout the United Kingdom. As well as supporting the elite athletes who will be competing in the games, an important part of the Olympic legacy will be inspiring young people to take part in sport and to develop their talents. This Bill, in addition to the measures that he has mentioned, will be instrumental in inspiring that new generation.

[Mark Lancaster]

My hon. Friend makes an important point. The whole programme is excellent, particularly the 50p coins, of which I think there are 29 versions, celebrating each individual sport. One of those coins was designed by a “Blue Peter” viewer, so we have indeed managed to engage the whole country in the programme. That is important if we are to continue to inspire young people to take part in the Olympic programme.

Let us not forget the Paralympic mascot, Mandeville, named after the Buckinghamshire village where the precursor to the Paralympics was born. I would also like to mention Dr William Penny Brookes, the founder of the Wenlock Olympic games, which have been held almost every year since 1850 in the historic town of Much Wenlock, in the constituency of my hon. Friend the Member for Ludlow (Mr Dunne). As the House knows, the Wenlock games were the inspiration—here, in England—of the modern Olympic games, which started in 1896 in Athens, after Baron Pierre de Coubertin, a Frenchmen, had witnessed them. The London Organising Committee of the Olympic Games and Paralympic Games has recognised Much Wenlock’s place in British Olympic history by naming the London 2012 mascot Wenlock. That is an excellent tribute to my hon. Friend’s constituency town.

The striking of kilogram coins will not be limited to commemorating the Olympics. Future events of cultural significance and historical anniversaries, as well as sporting occasions, could all be celebrated in that way. The Coinage (Measurement) Bill therefore presents an exciting opportunity, with far-reaching implications. I am looking forward to a lively debate, but would urge hon. Members to let the Bill pass unopposed to the Committee stage.

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[Mark Lancaster]

I start by thanking hon. Members on both sides of the House for their support for the Bill, and in particular my hon. Friend the Economic Secretary. I am grateful to the hon. Member for Bristol East (Kerry McCarthy), from the Opposition Benches, who also supported the Bill, although her comments about the Mayor were a touch cruel, not least since I have seen him out jogging recently and that weight problem is coming down rapidly.

I am afraid that I make no apologies to my hon. Friend the Member for Carshalton and Wallington (Tom Brake) for promoting the Bill. Milton Keynes is a fantastic sporting city. We were set to be a host city for the 2010 World cup, had we got it. We have a fantastic football team, a basketball team, an ice hockey team and the country’s largest indoor snow dome. We are also home to the National Badminton Centre. Having worked very closely with many of my young people, I know that they are absolutely captivated by this Olympic programme and I make no apologies for doing my bit to ensure that there will be a strong Olympic legacy.

I have great sympathy with the point made by my hon. Friend the Member for Bury North (Mr Nuttall), but as the coin is set for international markets it is appropriate that it should be struck as a 1 kg coin. This is an uncontroversial and short Bill. I thank hon. Members for their support and commend it to the House.

Question put and agreed to.

Bill accordingly read a Second time; to stand committed to a Public Bill Committee (Standing Order No. 63).