Leaving the EU: Protection for Workers

Debate between Lord Mann and Greg Clark

Wednesday 6th March 2019 Commons Chamber

[Greg Clark]

I am grateful to the right hon. Lady for the compliment that she paid me. I would reflect on the facts. She mentioned that introducing the minimum wage was a fight. This House is used to having fights and campaigns. The purpose of this Chamber is to have crusades that are successful. She will know that, far from that innovation having been rescinded, it was a Conservative Government who introduced the national living wage, which was the biggest pay increase for low-paid workers in 20 years. She should take confidence in that.

The right hon. Lady refers to drawing these protections from the European Union. Once we leave the European Union, the basis for a framework of workers’ rights will obviously not be there, and the alternative is that there would simply be no reference to what is happening in the European Union; that would be the default. We are responding to some helpful suggestions from the right hon. Lady’s colleagues that this House should keep a close eye on what is happening in the rest of Europe and that there should be an ability for the House to act on that. That is a good idea. I cannot say that it was my idea originally—it was brought to my attention—but when we recognise a good idea, I think we should back it.

[John Mann (Bassetlaw) (Lab)]

I recall, as an MP, taking a delegation of miners’ leaders to Brussels to argue for jobs and investment, but we were blocked by the state aid rules that the European Commission enforced on us under a Labour Government. That is why Harworth colliery in my constituency closed.

I welcome the Secretary of State’s openness in his statement—both to amendments from Labour Front Benchers over the next few days, if there are precise amendments and, if they are not agreed, to the ability to table amendments to the withdrawal Bill that can be voted on by Parliament.

I negotiated the derogation, under the Labour Government, for one section of workers from the Work at Height Regulations 2005 because of the way in which the Commission framed the legislation. When it comes to health and safety, will there be automatic harmonisation—in other words, we accept everything that comes, regardless of its suitability to specific industries and groups of workers? When it comes to health and safety and sometimes environmental standards, that has been a fundamental issue, and it would be one if we had direct harmonisation.

[Greg Clark]

I am grateful to the hon. Gentleman for his work in crafting this proposal, and I repeat the commitment to continue to work together as the draft clauses become clauses that are laid before the House. The procedures of this House allow substantial debate of those clauses in Committee and on Report. I agree with his assessment. It is not the case that every regulation proposed by the European Union is ideal and well suited to our circumstances. From my experience in European Councils, there is a process that tries to apply a set of rules in many different countries and economies that may not actually be the best for the UK economy. The procedure that the hon. Gentleman has given us the ability to discuss today provides this House with a means by which to consider what the best form of regulation is, suited to our circumstances and respecting the sovereignty of this House and this Parliament.

Oral Answers to Questions

Debate between Lord Mann and Greg Clark

Tuesday 8th July 2014 Commons Chamber

[Greg Clark]

My hon. Friend makes an excellent point. One of the great advantages of online registration is that it is available to our serving servicemen and women around the world. It is a huge step forward that they do not need to rely on the post.

[John Mann (Bassetlaw) (Lab)]

In the Sheffield city region, which, of course, includes Bassetlaw, students are particularly keen to vote at the next general election. What specific assistance are the Government giving to colleges and, in particular, further education colleges to ensure they can play their role in maximising the number of students who are able to vote?

[Greg Clark]

I am sure there are lots of people in Bassetlaw who are very keen to vote, but it is hard to say whether they will vote for or against the hon. Gentleman. He is absolutely right that, in times past, a smaller number of students have been registered to vote in other places. That is why under the funding formula more money now goes to every place where there is a substantial student population, including Sheffield: £47,000 has been allocated to Sheffield city council specifically to drive up electoral registration.

Financial Services (Banking Reform) Bill

Debate between Lord Mann and Greg Clark

Monday 11th March 2013 Commons Chamber

[Greg Clark]

The right hon. Gentleman will find that he will be perfectly satisfied with the degree of scrutiny that the recommendations, which have not yet been made, will receive. I have made that commitment and he will see it in time, even if he is not very trusting at this stage. I hope he will change his view.

One of the parliamentary commission’s policy recommendations was for a general reserve power to split up the entire banking system if it were considered to be appropriate in future. The Chancellor, the chairman of the commission—my hon. Friend the Member for Chichester—and, indeed, the Archbishop of Canterbury had a learned and erudite discussion about the origin of the sword of Damocles metaphor. The Government’s view is that such a power would, in effect, introduce a different policy—one that was considered and rejected by the Independent Commission on Banking, which concluded that full separation would have higher costs for a gain

“that might not even be positive”—

without anything like the three-year period of scrutiny and analysis that this policy has enjoyed.

The proposal would, in effect, legislate for two policies at the same time—ring-fencing and full separation. We must legislate for the policy that the Vickers commission proposed. If a future Government were to consider that ring-fencing was no longer the right solution—which they would be perfectly entitled to do—they should conduct a full analysis of the case for alternative reforms and, in the light of that analysis, introduce new legislation to Parliament.

In addition, the parliamentary commission has proposed that the exercise of the reverse power by the Prudential Regulation Authority should include safeguards, including a Treasury veto, to ensure that the regulator behaves in a non-discriminatory way. The Government agree that there should be such a veto and will table an amendment to provide for a firm-specific power to require separation while the Bill is before the House. In addition, a further safeguard is available for any bank that believes it has been treated unfairly—namely, recourse to the courts.

One very important point that both the Vickers commission and the parliamentary commission agreed is that, in addition to the enhanced capital requirements on ring-fenced banks, there should be a minimum leverage ratio and that it should apply to unweighted assets of 4.06%, rather than the Basel III standard of 3%.

Let me be clear: this Government support the introduction of a minimum leverage ratio. It provides a simpler measure than risk-weighted assets, the calculation of which can be complex and disputed. Furthermore, it has been established empirically that a rise in the leverage ratio often preceded credit booms in this country and overseas.

The question remaining is about the precise level of the leverage ratio. I referred earlier to the British dilemma of how to maintain an internationally competitive financial sector without imposing risks on domestic taxpayers. This is a case in which that dilemma is, to be frank, most acute. When it comes to capital requirements, international agreements have already established that different countries will have different requirements. The European Union capital requirements directive, CRD4, provides for member states to have discretion to go beyond agreed capital requirements.

In the case of the leverage ratio, the 3% Basel III recommendation was for the requirement to be binding only from 2018, and it is not clear yet whether there will be the flexibility in European law to increase it as Vickers and the parliamentary commission recommend. The Vickers commission did not recommend that the higher leverage ratio should apply before 2019, in order, for reasons that I think we all understand, to minimise the impact on lending in the short term while the economy is still recovering.

Furthermore, during our repeated consultations, concerns have been raised by institutions such as building societies that they could be caught by a 4% leverage ratio despite having a relatively low-risk portfolio of assets, thereby restricting lending to home owners. Moreover, it would lead to assets in Spanish property, for example, being viewed as equal to US Government bonds for the purposes of the calculation. Our view, therefore, is that at this time we should follow the international approach and press for countries to have power to set a higher ratio from 2018, following a review in 2017.

Having said that, in the interests of transparency, we agree with the recommendation of the Financial Policy Committee that banks should disclose their leverage ratios from 2013. I confirm that they will do so from this year.

[John Mann (Bassetlaw) (Lab)]

Does the Minister perceive there to be a problem for very small building societies, because they are more disadvantaged than large institutions and could be swallowed up, thereby reducing competition in the market rather than increasing it?

[Greg Clark]

I have taken to heart the need to allow into the market smaller players, whether they be building societies or banks. I will say something about that shortly which I hope will satisfy the hon. Gentleman.

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[Greg Clark]

My hon. Friend is a passionate advocate of that, and I think that what I will say about it will please her. I hope that she will be able to contribute to the debates on it in the weeks ahead.

The Government intend to go further on the matter of competition than was suggested in the reports of the two commissions. I strongly believe that the concentrated nature of the UK banking industry is unacceptable. I want to see far greater possibility, and indeed reality, of entry into the market by new banks and building societies. One of the barriers to that has been access to the UK payments system. Potential challengers have to win the permission of incumbents to be able to use the system. The Government will therefore shortly consult on a proposal to make access to the payments system regulated, to ensure that it is available on fair, reasonable and non-discriminatory terms. Subject to the findings of the consultation, the Government will consider tabling amendments to the Bill to give the regulator the necessary powers. I think that would address my hon. Friend’s ambitions.

[John Mann]

I welcome the Minister’s comments. Will he also table an amendment to recreate the Halifax building society out of the state-owned Lloyds-TSB bank? That would immediately create a major competitor on the high street that would be hugely popular, as it was before it was bought out.

[Greg Clark]

We want to see greater competition and more entrants. The hon. Gentleman will know that in the case of the banks in which we were in the unfortunate position of having to take a shareholding, the arrangements that govern that shareholding require us to operate at arm’s length of the interests of other shareholders. No doubt he will be able to make his points throughout the passage of the Bill.

[John Mann]

This is a Bill, and it can become an Act, so the Minister could table a Government amendment to do precisely what I said. Why is he not taking the opportunity to recreate the Halifax building society, which hundreds of thousands—perhaps millions—of consumers across the country would greatly welcome?

Banking Reform

Debate between Lord Mann and Greg Clark

Monday 4th February 2013 Commons Chamber

[Greg Clark]

My hon. Friend and I completely agree about the need for more competition in the banking sector. It is one of the features of the banking crisis that it has resulted in a concentration in the number of banks. Frankly, there were never enough in the first place, and we need urgently to see more new entrant banks of all types coming in. We are working with the existing regulatory authorities and, through amendments to the Bill, we will transform the state of competition in the banking sector. I very much hope to see an infusion of new energy and talent into the banking system in this country.

[John Mann (Bassetlaw) (Lab)]

Given that we have the highest high street lending rates in the European Union, along with the lowest high street saving rates, why is not the Minister proposing the break-up of Lloyds TSB in addition to that of RBS? That would immediately create proper competition in the banking sector.

[Greg Clark]

As I am sure that the hon. Gentleman would acknowledge, the Government have promoted the sale of Northern Rock to Virgin, for example, to try to encourage new entrants, and he will see more of that in the future. On interest rates, those that are being paid on mortgages and small business loans at the moment are very much lower than they would have been had we not taken the necessary action on the economy to keep them competitive.

Oral Answers to Questions

Debate between Lord Mann and Greg Clark

Monday 28th February 2011 Commons Chamber

[John Mann (Bassetlaw) (Lab)]

On the Localism Bill, 12,000 people in my constituency supported a 1,000-job development, and there was one objector. Guess who the Secretary of State backed. Whatever happened to localism?

[The Minister of State, Department for Communities and Local Government (Greg Clark)]

Under the Localism Bill, local people will have the right to prevail in future. Once the Bill has received Royal Assent, every community will have the right to a local plan that will then govern decisions made in future.

Oral Answers to Questions

Debate between Lord Mann and Greg Clark

Monday 17th January 2011 Commons Chamber

[Greg Clark]

One of the great advantages of localism and the Localism Bill is that it will be crystal clear that local authorities are responsible for these decisions, and I hope that in every part of the country local people, through the ballot box, will bring pressure to bear on councils that fall behind others.

[John Mann (Bassetlaw) (Lab)]

19. What assessment he has made of the adequacy of provision of fire services in Misterton, Retford, Harworth and Worksop.

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[Greg Clark]

We will do more than discuss it; we are going to act on this. It is important that we have a fast-track process for infrastructure investment, but it is also crucial that it is democratic. If people do not have confidence that those who take the decisions can be held to account, there will be no faith in the system. The Localism Bill will deliver the reforms that my hon. Friend seeks.

[John Mann (Bassetlaw) (Lab)]

T5. In defining localism, if the Secretary of State were to get a planning application appeal on his desk regarding a development that 12,000 local people were in favour of and that would create lots of jobs, and that only two people, and the Tory council, were against, which side would he be on?