(9 years, 10 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
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It is a pleasure to serve under your chairmanship, Mr Davies.
I congratulate those throughout the United Kingdom who have taken the bold step of starting a small or medium-sized enterprise, thereby creating employment in their local community and strengthening the local economy. I am sure that many Members agree that we should thank the House of Commons Library service for its excellent research in the debate pack, and I thank my own staff who have helped me to prepare for the debate.
By way of background, the usual definition of an SME is any business with fewer than 250 employees. There were 5.2 million SMEs in the United Kingdom in 2014, or more than 99% of all businesses. Most businesses in the UK are small, with fewer than 50 employees, rather than medium-sized, with 50 to 250 employees. In answer to a parliamentary question, the Government estimated that 21%, or £45.4 billion, of pay-as-you-earn received in respect of the 2010-11 tax year came from small businesses. There are also micro-businesses, which by definition have between one and nine employees. In 2014, there were 5 million micro-businesses, accounting for 96% of all businesses.
The economy is therefore dominated by small business. According to a 2013 report by the Federation of Small Businesses, small firms in the UK make up 99.3% of all businesses, contribute 51% of gross domestic product and employ 58% of the private sector work force. Research commissioned by the FSB with other partners in 2008 demonstrated substantial barriers to SMEs winning public sector contracts, indicating that 70% of SMEs rarely or never bid for Government procurement opportunities; 76% of SMEs felt that there were barriers to prevent SMEs from being fully aware of public procurement opportunities; and 55% of SMEs felt that the process of bidding for Government contracts required more time, effort and cost than their business could allow. Lack of awareness of opportunities was among the most important reasons for not bidding for a public contract.
Research also shows that SMEs are generally more successful in bidding to the private sector than to the public sector: 51% of SMEs reported a success rate of more than 40% when bidding for private sector opportunities, while 62% had a success rate of 20% or less when bidding for public sector opportunities.
I thank my hon. Friend for giving way in the midst of the stats coming full and fast—he must be in full flow. He is getting to the nub of things, but does he agree that many of the SMEs, in particular out in the regions, in Northern Ireland and elsewhere, are very small and employ only one or two people? The time and expertise required to apply, therefore, is often not in place, and we need to support that.
I agree with my hon. Friend. That will certainly be part of the effort that I am endeavouring, through the debate, to achieve.
The Government plan for growth published alongside the Budget in March 2011 highlighted a number of policies stated to be of particular benefit to SMEs, including such measures as making it easier for them to access public sector procurement by eliminating the prequalification questionnaire for contracts worth less than £100,000, advertising procurement opportunities on Contracts Finder and setting an aspirational target that a quarter of Government contracts should be awarded to SMEs.
My hon. Friend is certainly in the flow today, so it is hard to intervene. As well as action on procurement, does he agree that over the past number of years the Government also promised to speed up payment terms for small companies? A lot of what has been done, however, has been paying lip service. Northern Ireland has improved, but a lot of work remains to be done. Cash flow is vital to small companies if they go for Government contracts.
I am sure my hon. Friend will touch on the matter, but does he accept that part of the problem lies with the procurement rules that we inherit from Europe as part of an attempt to create the single market? They lay down pretty draconian requirements when it comes to bidding for Government contracts. We ought to be looking at how those requirements can be amended and how we can raise thresholds to avoid some of the European regulations on procurement.
I agree, but even within the European regulations, there are things we can do and that the Government should do more of to alleviate some of the problems that my hon. Friend mentions.
In the 2013 autumn statement, the Chancellor included measures designed to benefit small businesses, including the introduction of a £2,000 employment allowance from April 2014, making it cheaper to employ staff aged under 21. That incentive, according to the Government, will benefit up to 1.25 million businesses and result in about 450,000 businesses, or one third of all employers, being taken out of paying national insurance contributions altogether.
After the autumn statement, the Government launched the “Small business: GREAT ambition” scheme in December 2013—a series of measures designed to make it easier for small businesses to expand, including the introduction of broadband vouchers worth up to £3,000 in 22 cities throughout the United Kingdom, which were designed to let more small firms access faster broadband connectivity. It is disappointing to note, however, that Malcolm Corbett, head of the Independent Networks Co-operative Association, has said:
“The scheme has not proved as successful as the Government had hoped”.
I therefore encourage those businesses eligible to avail themselves of the scheme before the March 2015 deadline to do so.
I congratulate the hon. Gentleman on securing the debate. He touched on the need for broadband in small businesses. Especially in rural communities, we are seeing the difficulties of getting that high broadband speed. Does he feel, as I do, that that excludes a lot of small firms from bidding for contracts, especially e-procurement ones?
I wholeheartedly agree with the hon. Gentleman. The lack of an up-to-date and modern broadband connection makes it very difficult to get into Government contracts.
To promote the further growth of SMEs, following on from the recommendation in Lord Young’s report, a new scheme was designed to make it simpler for small firms to win public sector contracts, which are estimated to be worth £230 billion a year. In addition, there was a commitment to tackle the late payment of small firms to ensure that those small businesses supplying the public sector and its supply chain were paid at the same time as the large contractors.
In May 2013, Lord Young published “Growing Your Business”, a report on growing micro-businesses following on from his report on entrepreneurship and start-ups published in May 2012. The 2013 report makes a number of policy recommendations for businesses employing fewer than 25 people, including the establishment of a small business charter and, crucially, a
“new ‘single market’ commitment to ensure a simple and consistent approach is taken across public sector procurement.”
In 2012-13, the public sector spent £230 billion on procurement of goods and services, including capital assets, accounting for 34% of total managed expenditure. Of that £230 billion, approximately £38 billion was capital procurement, the rest being current. Of the current procurement, approximately £40 billion is by central Government, £84 billion by local government, £50 billion by the national health service and £13 billion by the devolved Administrations.
Hon. Members will note the public interest in several recent awards of major procurement contracts, which have attracted scrutiny and even criticism from some hon. Members. In the light of the recent difficulties, the Government set themselves a target of procuring 25% of goods and services by value from SMEs by 2015, with the flattering words that such businesses are
“a crucial engine for growth”
as they account for 99.9% of UK businesses.
Research by the FSB reveals that every £1 a public body spends with a small business generates 63p of additional benefit to the economy, compared with 40p of additional benefit when spent with a large business. Although there is much ongoing debate about the advantages and disadvantages of EU membership and whether the UK should remain within its bureaucratic quagmire, the position remains that the Government not only can but should do more to support SMEs in accessing public procurement in compliance with EU diktat.
Does my hon. Friend accept that, although there is a problem with procurement, in some small companies there is a lack of understanding of the procurement process? There needs to be a robust educational process, perhaps through councils, under which small, young micro-companies learn exactly what it is all about.
I thank my hon. Friend for making that point. However, to give an illustration from my own constituency experience, I often find that a small business not only finds it difficult with all the filling in of forms, but is blocked from getting into contracts. That is the issue that I want to get to the heart of, but I must first lay the foundations.
A core principle of the EU is to establish a single market that encourages trade and maximises value for the taxpayer in public procurement, obtaining the latter through increased competition by allowing companies from other EU nations to bid for contracts. As SMEs are crucial to the UK’s economic recovery, what have the Government done to encourage and assist them in accessing EU markets and public procurement in other EU member states?
EU procurement rules include transparency, fairness and non-discrimination. They apply to SMEs accessing public procurement in other EU member states, but do nothing to tackle those issues within the United Kingdom, as such rules do not apply. It remains an anomaly of the single market rules that, although under EU law one member state is not allowed to discriminate against an SME from another member state as part of public procurement of goods and services, subject to certain criteria, member states are entitled to act in a discriminatory fashion towards their own nationals.
It is admirable that the coalition Government have engaged with SMEs as one of their two main priorities concerning public procurement and that they intend to achieve that aim by making the procurement process
“much simpler, more open and less bureaucratic—so all businesses, no matter what their size, have a chance of success”.
However, the realisation of that priority, by opening doors for SMEs and providing them with the tools to apply, will make the real difference to our businesses and propel this country’s economic recovery forward.
The hon. Gentleman mentioned Europe and the European strategy to exclude others and source products and services more locally. How does he feel about the playing of the green procurement card, which seems to be natural across Europe? Should we adopt that strategy and say that, in the spirit of green procurement, we will source as locally as possible?
Before my hon. Friend moves on, does he accept that there is considerable merit in the point raised about the green procurement card, especially when it comes to the purchase of fresh food for schools and hospitals, which can be locally sourced? There is an environmental as well as an economic argument for sourcing such goods and services locally.
I am happy to agree with my hon. Friend on that point and am delighted that he has a genuine interest in that environmental issue. I am sure that will be noted carefully.
The old proverb says, “Give a man a fish and you feed him for a day. Teach him to fish and you feed him for life.” Although Stephen Allott, the Government’s appointed SME champion, argues that the
“big change is that procurement reform under Labour was a nice thing to have, whereas today saving money is central”,
the Government need to realise that people’s livelihoods are at stake. Owners of SMEs have often bravely given up a comfortable lifestyle and made significant investment to start up businesses from scratch. They are not mere pawns on a Government chessboard to be played when election time comes around. Much more needs to be done to upskill SMEs in the public procurement process. If a supplier has not bid before and is not very skilled at completing the tender, although it might be the best supplier, it will not win the contract. That was the point raised by my hon. Friend the Member for Upper Bann (David Simpson) a few moments ago.
Interestingly, Mr Allott has stated that the difficulty in fast-tracking the SME agenda arises because of staff cutbacks in the public sector, and notably cuts to the number of individuals in procurement. Such streamlining has led to greater aggravation. It may on occasion save the taxpayer money, but it does nothing to support SMEs. Mr Allott has gone further, stating that the pressures now borne by remaining procurement staff have led many to
“stick with the suppliers they know rather than spend time researching potential partners or having speculative meetings with untried suppliers”—
so it is not what you know but who you know. That leaves SMEs isolated while large companies continue to court those with influence.
On indirect contracts, how will the Government ensure there is a “David and Goliath” approach to prevent prime contractors from driving down prices and creaming off the best work for themselves, leaving slender pickings for their smaller partners? What will the Government’s SMEs champion be doing to help SMEs to get the best possible deal when working with large companies?
On the “David and Goliath” issue, when many large companies receive Government contracts, SMEs turn out to be subcontractors and are pressurised harder on pricing, so their job becomes even more difficult.
I accept what my hon. Friend says.
I turn now to what the UK Government could learn from the devolved Administrations. According to FSB research, in 2013, authorities in Northern Ireland spent on average 80% of their total procurement spending with SMEs. Details of all current Northern Ireland public sector tender opportunities are available on one centralised web portal. In addition, a number of events have been organised to encourage economic co-operation and trade, enabling local businesses to meet a wide range of public sector buyers, including buyers from central Government Departments, councils, universities and other public bodies.
In 2009, the Assembly’s Committee for Finance and Personnel conducted an inquiry into public procurement and practices in Northern Ireland. As a result of that inquiry, the Committee made 52 recommendations to the Department of Finance and Personnel in a report published in February 2010, including all the recommendations put forward by the FSB. That shows that key stakeholders such as the FSB are listened to in Northern Ireland.
According to the Cabinet Office papers “Direct and Indirect Spend with SMEs” and “Making Government business more accessible to SMEs”, the total proportion of procurement spend with SMEs by central Government Departments has increased year on year. However, that analysis fails to include public bodies outside central Government. Hon. Members need to note that there are 22 non-ministerial departments, 346 agencies and other public bodies, 70 high-profile groups and 12 public corporations that, in total, have considerable spending power.
In October 2012, when Lord Heseltine published his independent review on increasing UK growth, “No Stone Unturned”, he recommended that the Government
“should place a general duty on all public bodies”—
not just those in central Government—
“setting out the procurement standards to which they should adhere, by providing a pan-government procurement strategy, legislating if necessary.”
When the Government published a consultation on a range of measures to simplify and standardise public sector procurement in “Making public sector procurement more accessible to SMEs” and “Small Business: GREAT Ambition”, in September and December 2013 respectively, they said that they would legislate and make changes across the wider public sector. However, it is regrettable that none of those changes included placing a duty on all public bodies, not just those in central Government, to set out
“the procurement standards to which they should adhere, by providing a pan-government procurement strategy”,
as Lord Heseltine recommended, because that has not happened.
I have tried to explain my general feeling about SMEs and Government contracts to set the scene for the debate, which I was urged to secure because of an experience in my constituency. That experience has not just troubled me; it has really got to me. A local person has put all their money into trying to be innovative and to create something good as a British enterprise, but that seems to have been stamped on and put into the ground.
That small, innovative British SME in my constituency has been failed by the Government and a public body for which it is accountable—the Highways Agency. That failure has affected not just the company, but the work force on the strategic road network, the taxpayer and the British motorist. This case study illustrates: the extent of the barriers erected to prevent market entry; the power of the small number of big companies that dominate the road maintenance market on the strategic road network; the disregard for safety and efficiency exhibited by the Highways Agency; and the seeming impotence of Departments to ensure that British SMEs are treated fairly and given appropriate opportunities, in this instance to introduce new products designed specifically to improve safety for the work force and the motorist, and to secure much better value for money for the public purse.
It is clear from the evidence that the safety of the work force is not given the priority that is required. On 8 January 2015, the Highways Agency was censured for the death of a traffic officer in September 2012 and, recently, another road traffic worker was killed on the strategic road network. It is also clear that the automation of traffic management processes could be made much more efficient through the use of an automated system of cone laying and retrieval.
Between 2002 and 2006, the SME that I am speaking about focused on ensuring its compliance with all UK industry standards, which involved complex interactions with several public bodies including the Highways Agency, the Health and Safety Executive, the Department for Transport and the Transport Research Laboratory. By 2006, its manufactured system had been thoroughly tested and trialled across the UK, and it was fully compliant and market-ready. The Highways Agency funded all of the trialling, which signalled its interest in this innovative automated product.
In August 2006, the product was launched with a DFT press release and a statement from Dr Ladyman, the then Minister. He commented:
“In 2005, five road workers were killed in the course of their work on England’s motorways and major roads, making the motorway one of the most dangerous working environments in Britain…This new machine will help to give extra protection to workers and the public on our busiest roads, and help the Highways Agency to use lanes more efficiently during roadwork programmes…Road workers risk death and injury from traffic accidents every day, while making sure our roads are safe and well maintained”.
At that point, given such a press release, one would have expected that the product was well placed for adoption throughout the strategic road network.
The Highways Agency introduced the company to one of its major contractors in 2006. In the company’s view, their negotiations were not conducted in good faith. It transpired that the major contractor wished to purchase only one or two systems, because what it really wanted was the transfer of all intellectual property and manufacturing rights to itself, although what was proposed would have involved a loss for this small business.
As the months followed, it appeared that the role of the Highways Agency was to exert pressure on the company to accept the contractor’s offer at the contractor’s price, even if that involved a loss. The Highways Agency used its influence to support the major contractor, but not to support the SME, the theme behind Dr Ladyman’s statement about how road workers
“risk death and injury from traffic accidents every day, while making sure our roads are safe and well maintained”,
nor achieving a good price.
During 2008, to facilitate Highways Agency contractors to trial the new technology locally, a vehicle, system and skilled traffic management crew were made available for the entire Highways Agency network, ready to mobilise at short notice. Direct involvement with the Highways Agency failed to attract any business from the contractors.
Following my intervention in 2009, the Transport Research Laboratory, acting on behalf of the Highways Agency, presented the company with a proposed new contract. A signature on the contract would have transferred all intellectual property and manufacturing rights from my constituents to the Highways Agency, acting on behalf of the Crown. As part of the proposed contract, the agency would have been free to appoint a third-party supplier to benefit from the rights, to the loss of the original SME. The SME was expected to support the potential new supplier.
The company refused to sign the contract, but was prepared to negotiate. That led to an extended trial in 2009-10, which was carried out by the TRL and the agency. The trial was deeply flawed because untrained workers were used on the live road network, which meant that only seriously understated benefits could be derived from the use of the new product. Once again, for the benefit of the industry and to test this new technology locally, a vehicle and system was made available for the entire Highways Agency network between March and September 2010. There was professional support from about 20 depots across England, but Highways Agency contractors were not interested.
In 2011, on the company’s behalf, I, again, engaged with the Department and its then Minister, the right hon. Member for Hemel Hempstead (Mike Penning). As a result, the Highways Agency conducted a cost-benefit analysis, which suggested that there would be huge additional costs and limited benefits, due to poor value for money and little safety benefit. Following a challenge of the work, the then Minister—I give him full credit—ordered an independent review, which was carried out by Jacobs, an international consultancy. It proved extremely difficult to secure proper data from the Highways Agency—I needed to table a series of questions, as a Member of Parliament—but eventually, in February 2012, the Jacobs report concluded definitively that the product could provide significant value for money, improved traffic flow and considerable safety benefits, which was the opposite of what civil servants said to the Minister. For example, when the then Minister asked how many stoppages there would be, the civil servants said that there would be 120,000 lane closures a year, but when I asked the question, as I did again and again, the answer that I received was 26,000. They were only out by about 4:1, so of course that really means little. The cost-benefit analysis was proved completely wrong.
The company wrote to the contractors and approached the SME champion at the Department for Transport. That engagement led to a report from the contractors that displayed a total lack of interest in a product that an independent and credible evaluation had declared could bring significant efficiency savings, value for money and safety benefits. The Highways Agency arranged a meeting between the company and the contractors, but appeared to be content that its contractors, using public resources, could turn their back on efficiencies, modernisation and safety. Then, of course, the Minister was moved from the Department, and the new Minister who took over did not seem to have the same interest.
The early contractual negotiations were not conducted in good faith. They were designed to ensure that a major contractor could benefit from the intellectual property rights and manufacturing potential of an SME-driven innovation. So much for getting SMEs into Government contracts.
It appears that after the refusal to sign the contract that was offered, the product was closed out of the market, even when it was ready to be used locally across the network. The independent report by Jacobs, which identified good value for money and safety benefits, was ignored by the contractors and also, largely, by the Highways Agency. The Department proved unwilling to challenge either the agency or the contractors with any degree of rigour, despite being the funder of the agency’s contracts. All the bodies involved did not address with sufficient vigour the safety benefits that the product would have brought. In addition, the Department and the agency refused access to the minutes of the Road Workers Safety Forum trials team because that might inhibit a free and frank exchange of views by contractors. The public interest did not appear to be paramount.
The experience of this company from 2006 to the present day has created the impression that a cartel of big contractors can ignore potential value for money, efficiency and safety considerations with impunity, and that that does not matter, as they will get their pay at the end of the day. They will be paid for what they put in, but the small company or micro-business can be trampled into the ground.
The system of accountability for the expenditure of public money appears to lack any effective scrutiny or teeth. There is a real issue about the safety dimension of this experience that does not appear to have been given serious attention by any of the major public or private players. The question at the heart of the matter is about the relationship between a public body and its private contractors. How far are decisions on road safety being determined by commercial concerns, and to what extent are the Government content to allow the self-regulation of safety standards for road workers and users?
This is an important issue and I will not let it go. I will continue to try to find out exactly how this happened. I do smell something wrong in this, as it seems that some persons within Departments are happy to play along with the big contractors.
It is an honour to speak under you, Mr Davies; I intend to speak for only about 23 minutes.
I welcome the debate initiated by my hon. Friend the Member for South Antrim (Dr McCrea). The circumstances that he has placed on the record are astonishing. They show that a small, creative company has been really screwed, quite frankly. That company deserves explanations and honesty. I hope the Minister, who I know will genuinely look into this, will be able to give the company some reassurance and support—if not today, then at some point after he has had the chance to examine these claims.
We are trying to rebalance our economy in Northern Ireland. We are trying to attract inward investment and more private sector work. That includes growing our indigenous companies and, in particular, encouraging small companies, which are the backbone of Northern Ireland—whether they are in the agri-food sector, the creative media sector, financial services or any other sector. We are trying to help those companies to grow by one or two people each year so that the economy can really rebalance itself.
Those things can be made difficult, however, if one source of job opportunities—Government contracts—is not made more readily available to local companies. There is a saying in Northern Ireland that if someone is not working for the Government, they are not actually working. That is because so many people are employed directly or indirectly in Government or departmental activities. That includes not only the obvious things, such as health and policing, but the less obvious things, such as the technical and financial sectors, where a lot of the work relates to Government activity and Government-associated activity. It is critical that local companies are not only given the opportunity to bid competitively for these opportunities, but are, as many Members have said, encouraged and actively supported in their bids.
Our job is made much harder whenever major companies in the private sector are threatened and have to take employment away. That means that more people are put on the unemployment heap, and they will then, more than likely, have to seek public sector-related employment. I have seen that in my constituency, with the announcement that almost 1,000 jobs will be lost between now and 2017. The tobacco manufacturing company JTI, formerly Gallaher, is being closed down because of Government over-regulation—the European directives on tobacco products and the Government’s gold-plating of those directives through the plain packaging legislation. That destroys employment and opportunities, and has a knock-on impact on the economy. It affects 900 people directly, and a further 200 indirectly. There is pressure on the economy from those policies.
Earlier this month, the Prime Minister of the United Kingdom made the ambitious statement that he wanted to make the UK the factory of the European Community. I welcome that statement and ambition, and the aspiration to attract employment here—not only private sector employment, but more Government work flowing to private sector companies. I have a challenge for the Government: to make sure that in attracting companies and making these islands into the factory of Europe, they do not forget about the little island off the coast, and do not forget about Ulster. I challenge them to include Northern Ireland in their ambition, and to make sure that jobs go there. It is easy to kick back and say, “Look, this is really a matter for the Department of Enterprise, Trade and Investment in Northern Ireland or some other local devolved body to deal with.” That attitude is no longer good enough.
We are all in this together and must ensure that the national Government do as much to encourage employment and inward investment as the local, devolved Administration, who are tasked with doing the same. Northern Ireland is, of course, part of the United Kingdom and wants to play its full role in contributing to it, and delivering jobs. I would like the Minister, if he cannot tell us today, to report back to us with a specific, active strategy to attract employment for small and medium-sized enterprises and factories in Northern Ireland. That will help to rebalance the economy and ensure greater opportunities to bid for contracts—particularly Government contracts, when they come up—because more companies will be operating in Northern Ireland. Government contracts are a benefit to employment, and we want companies based in Northern Ireland to be entitled to bid, and to have the benefit of such contracts.
Both Members who have already spoken in the debate have mentioned broadband, which is critical in enabling viable bids to be made for some contracts. There are many companies at Woodside industrial park in Broughshane in my constituency; it has a local radio station, agri-food manufacturers, a fantastic company called Sunstart Bakery, which makes buns for Buckingham palace, and aeroplanes and international export businesses. Those companies deserve support, but they do not have adequate broadband, and have been campaigning for it for months. That would make the difference and allow the industrial park to continue to grow, and improve its effectiveness in fulfilling contracts. That is a key area for development.
My hon. Friend the Member for South Antrim represents the area of Aldergrove, the international gateway into Northern Ireland. It services employment not only in his constituency but in mine, and in East Antrim. There are moves afoot to try to attract a business park to that location. What an opportunity that would be for all our constituencies—a thriving business park there, supported by Government contracts and readily marketed as an area where companies could be based, with international connectivity, just 45 or 50 minutes from mainland Britain. That would be a huge opportunity for employment.
Broadband connectivity is a serious issue. The problem means that companies are deficient; some company directors send their staff home to work, because they have better broadband connectivity there than in an industrial park. That makes a mockery of the system, and the issue must be dealt with as part of a package of measures to enable the industrial parks to flow.
We are challenged by our neighbour on the island of Ireland; the Republic of Ireland has just this week announced that it intends to build a super-fast train link from Belfast to Dublin airport, so it can take business from our airports and connectivity. We must get ahead of the game. Our neighbour is entitled to compete with us, but we must beat it in the competition. We can show that we are better; we can show it a clean pair of heels. We need a kick-start, and making Government contracts readily available to Northern Ireland companies would provide one for that part of the economy. I welcome this debate for those reasons.
(9 years, 11 months ago)
Commons ChamberI am very pleased that my hon. Friend has met Senator Gary Hart, who is very much part of the current talks process. Apropos my remarks earlier about foreign direct investment, I am pleased to say that it is going up dramatically, although clearly it is not enough, and we would like to see far more in Northern Ireland from America and elsewhere. I would certainly welcome such a proposition.
4. What recent assessment she has made of the security situation in Northern Ireland.
The safety of people and communities remains the Government’s top priority in Northern Ireland. Although the threat level in Northern Ireland remains at severe, excellent co-operation between the Police Service of Northern Ireland and its partners has put violent dissident republicans under strain in recent months. There have been a number of significant arrests, charges and convictions, which are helping to suppress the threat.
I thank the Minister for his update on the serious nature of the security threat from republican terrorists and the absolute necessity of defeating them.
Does the Minister also accept that there are those who violate the sanctity of the homes of elderly people living in our community, threatening and terrorising them? Should not those criminals get custodial sentences of at least seven years, irrespective of how little or how much they actually steal through their criminal activity?
I will not be drawn on matters that are outside my sphere of competence, and I would certainly defer to the Department of Justice for action on many of the issues that the hon. Gentleman raises. I know that the PSNI takes these matters extremely seriously, as do the Government, and appropriate action must be taken.
(10 years ago)
Commons ChamberI will look very carefully at what my hon. Friend says. I enjoyed my visit to his constituency, and he is right: I could see the problems of congestion, but I could also see how the long-term economic plan is working in his constituency in terms of jobs and growth. He is also right about the local growth deal, which for Warrington and Cheshire is worth over £140 million in terms of Government funding, and that does include support for the new swing bridge, which will help to tackle the congestion as well as unlock important building sites.
Q12. The people of Northern Ireland welcome the success of the Police Service of Northern Ireland, assisted by secret recordings made by the British intelligence services, in bringing seven suspected terrorists, including terrorist godfathers, to court on charges of serious violent republican activity. Customs officials close an illicit fuel plant in Northern Ireland every 10 days. The profits from those operations have bankrolled republican terrorists for years and cost the economy millions, but there is anger that not one person has been jailed for such an offence in the last 12 years. Why are those terrorists and gangsters immune from prosecution? Does the Prime Minister agree that that is an intolerable situation, and will he intervene to enable the immediate full operation of the National Crime Agency in Northern Ireland?
First, no one who commits crimes in Northern Ireland should be immune from prosecution. The hon. Gentleman is right to pay tribute to the PSNI, which, over the past few years, has shown just what an extraordinarily capable police force it is. We should remember the conditions in which it was built. He also makes an important point about the National Crime Agency. It is proving itself in operation after operation, not just here in the United Kingdom but right around the world, and it should be playing a part in Northern Ireland. That is a discussion that we need to have with all the parties in Northern Ireland, and I hope that over time we can get everyone to see the sense of having that important organisation there for Ulster.
(10 years, 1 month ago)
Commons ChamberI would love to think that we lived in a world where we were all saints and there were no sinners. Clearly, there will be individuals who might well try to abuse the system. However, there is no system, whether it is the system my hon. Friend the Member for Richmond Park puts forward or the Government system, that is completely proof from any abuse. I take issue with the challenge from the hon. Gentleman on the name of the sponsor. I do not believe that the British people are sufficiently misguided not to look at the name. When they look at Mr Nobody, which I think is what he is suggesting, they will say, “Hold on a minute. Mr Nobody doesn’t generally get interested in these sorts of things,” and realise there is a stitch-up. I understand his concern, but we live in the real world. We do not live in a world of saints, but fortunately we do our best to deal with the sinners.
As part of the amendments put forward by my hon. Friend, what I propose will provide the comfort that I know a number of MPs want. At the end of the day, however, if we do not accept that we are here because of the trust of our constituents, and if we do not recognise that there has to be that mutual trust and respect, we have a problem. Indeed, we know we have a problem because right now people remember us for the expenses scandal. It really does not matter whether we were here at the time, we still have that black mark. We have to win that trust back and this is a very powerful way of doing it.
If we want to deal with an abuse of democracy and win trust back, does the hon. Lady realise that it does not help when this House pays hundreds of thousands of pounds each year to a political party in Northern Ireland, Sinn Fein, for not coming here to represent their constituents?
The hon. Gentleman has the advantage of me. That is something close to his heart and he understands its ramifications. This is a matter of where angels fear to tread. I do not think that this is an issue I am brave enough to comment on. Indeed, I think I would be wise not to, but I thank him for his comments.
(10 years, 1 month ago)
Commons ChamberIf those issues are not covered by the growth deal that has already been entered into, they are precisely the kind of items that my hon. Friend and others locally may wish to push for in the successor rounds, because devolving control over transport investment decisions is emerging as one of the common themes in all the different growth deals across the whole country.
Will the Deputy Prime Minister confirm that any devolution package for the devolved Administrations will not be uniform but will recognise the wishes and the capacities of each Administration? Given Sinn Fein’s fiscal irresponsibility in Northern Ireland, does he agree that the devolution of additional fiscal powers to the Northern Ireland Assembly needs to be considered carefully?
I certainly agree that there is no straitjacket solution to devolution across the United Kingdom or even in areas in England. One thing we must avoid is the trap of excessive neatness. Each part of our diverse nation is different. I share the hon. Gentleman’s disappointment that there is this stand-off, which, in the long run, will mean that if budgetary gridlock ensues it will be the poorest and most vulnerable in Northern Ireland who will suffer most.
(10 years, 2 months ago)
Commons ChamberThe threat posed by the barbarism, brutality and savagery of ISIL is not merely a threat to the Sunnis, Shi’as, Kurds, Christians and Yazidis of Iraq itself. ISIL poses a clear and present threat to the people of the United Kingdom; it is a clear and present threat to the territorial integrity of Iraq, the Government of whom have asked us to intervene by way of air strikes; and it is a clear and present threat to regional stability, international security and civilisation in general. For those reasons, we are in a different place from where we were a year ago when this House was last asked to consider military action—that time, in Syria—and for those reasons we in the Democratic Unionist party will support military action, unlike last time.
A plea has gone out to the country. The sovereign nation of Iraq faces a perilous time and it has submitted a request for assistance at this crucial juncture, to assist it in protecting its national security, and the security and safety of its people. With our history of fighting for freedom, democracy, justice and human rights, how can we as a nation turn our backs and reject such a plea?
This time, there is no question mark about the legality and validity of intervention in these circumstances, and there is certainly no question mark about the need for immediate intervention. The savagery, sheer brutality and scale of the genocidal wave of terror sweeping the region are truly terrifying; it is a savagery and obscenity that continues to shock even the most hardened commentators and those with great experience of previous conflicts.
In Northern Ireland, we are well used to the impact of terrorism on families and communities; we have seen it first hand and directly. However, this terrorism is on a different scale. It is a mediaeval-type barbarism, which people in the country want a response to.
Does my right hon. Friend agree that any decision to take military action is not one that will be taken lightly by any right hon. or hon. Member of this House, bearing in mind the sacrifice or the dangers facing our servicemen and women, but that we cannot sit idly by and allow a group of Islamic fanatics to terrorise and butcher innocent people in Iraq?
I am grateful to my hon. Friend for his intervention. Clearly, the dangers are great for our servicemen and women. I pay tribute to them and salute them for their efforts in many conflicts, and again they are being asked to do a job on behalf of the people of this country; the House is coming together to ask them to do that job. We wish them well, and we know that they will display the courage, gallantry and effectiveness that they always display in these situations.
(10 years, 5 months ago)
Commons ChamberIt is a pleasure to follow the right hon. Member for Gordon (Sir Malcolm Bruce). I should like to acknowledge Her Majesty’s Speech, which she delivered from the Throne today. The words may not have been hers, but the delivery certainly was. We are richly blessed as a country—England, Scotland, Wales and Northern Ireland—to have Her Majesty, Queen Elizabeth, as our Head of State. I am sure that we all wish her continued health and strength; long may she reign.
I associate myself with the remarks that were made by both the Prime Minister and the Leader of the Opposition concerning our troops who are leaving Afghanistan. I pay tribute to their sacrifice and say that they come home with honour. Because our troops served their country in Afghanistan, many families have been bereaved, and we extend our sympathy to them.
I also associate myself with the remarks that were made about Paul Goggins who, as a Minister in Northern Ireland, served with distinction. Certainly my right hon. and hon. Friends and I have many happy memories of him during his time there.
Her Majesty’s speech contains many elements that we warmly welcome. There are other elements on which we will be seeking more information from the Government, and there are some omissions with which we are disappointed.
First, let me start with the positive elements. The Democratic Unionist party welcomes the actions of the Government in addressing the ongoing scourge of human trafficking and organised crime. In this country, we are rightly proud of the role played by reformers such as William Wilberforce in bringing about the destruction of slavery throughout the British empire and other places in which our influence was felt. Despite that historical legacy, the sad reality is that slavery is still going on within our borders, and we have a moral obligation to act in that regard and to punish severely those who trade in human misery and suffering.
My colleague in the other place and in the Northern Ireland Assembly, Lord Morrow of Clogher Valley, is pioneering legislation through the Assembly. His Human Trafficking and Exploitation (Further Provisions and Support for Victims) Bill contains many measures to tackle the evil of human trafficking, to punish those responsible for the suffering and to afford help and protection to the victims. The central feature of that legislation is the adoption of the Nordic model in relation to paying for sex, and I strongly encourage the Government to go down that path as well.
Northern Ireland is the only part of the United Kingdom that shares a land border with another EU member state. A key element of fighting crime across that border is the work of the National Crime Agency, the importance of which has been acknowledged in the House. However, I am sure that the Government would agree that the behaviour of some parties in Northern Ireland, namely Sinn Fein and the Social Democratic and Labour party, which are currently blocking the establishment of the NCA in Northern Ireland, represents a gross and monstrous betrayal of the safety and security of their and my constituents. Those parties should reverse their position, and allow the people of Northern Ireland to enjoy the protection and the benefits afforded by the NCA. We must tackle serious crime, and those who stand as obstacles in the way cannot plead innocence and should be condemned.
On that subject, the obstacles that have been placed by certain political parties in Northern Ireland to the formation of the NCA have contributed to a loss of perhaps as much as £100 million of revenue to the Treasury because of the deals in which they have been involved.
I thank my hon. Friend for his intervention. It is correct that fuel and tobacco smuggling is a big thing, and the revenue that has been lost cannot be properly tackled without the benefits of the NCA. I ask the Government, once again, to act and to encourage the Social Democratic and Labour party, especially its Members who attend this House, to stop putting obstacles in the way—to remove them—allowing us to make progress on the protection and safety of all our citizens in Northern Ireland.
The DUP is a low-tax party. We believe that people, rather than Government, should decide how to spend their money. We therefore welcome the measures announced in the Gracious Speech pertaining to reducing taxation on personal saving. It cannot be right that, when people behave responsibly and set money aside to pay for home improvements, their children’s education, their health care expenses or their retirement, the Government take a slice out of such saving. Equally, measures designed to afford greater flexibility in how people draw down their pensions are to be welcomed. Nevertheless, it is important that a degree of education is afforded, so that people do not run out of money before their retirement comes to an end.
It was interesting to hear the right hon. Member for Gordon. He took all the credit for everything that he looks on as positive in Her Majesty’s Gracious Speech—not only this one, but ever since the coalition started—and all the difficult things that were hard for people to stomach, the Lib Dems, of course, had nothing to do with; those were simply down to the Conservative party. Honestly, that is hard for us to stomach, because that is not the reality. This is a coalition Government and, whether they were difficult decisions or easy ones, all the fingerprints will show the Lib Dems’ thumbprint on every one of them, just the same. They must take responsibility, and when they go to the electorate they are finding out that they are taking the responsibility. The recent elections to the European Parliament certainly showed that. They were left with only one MEP. To endeavour to take all the credit for things that were beneficial to the people, saying that that was Lib Dem policy and everything else Tory or Conservative policy, is rubbish and should be binned.
Can I ask the hon. Gentleman about something he said about pensions? Does he not think that the coalition Government have got themselves in a bit of a pickle with the concept of people being able to take all their money at one time, when there was tax relief on that money when they first paid it into the pension pot? There is a great danger that people will receive large sums of money and spend it unwisely unless some protective measures are introduced by the Government to ensure that that does not happen.
I certainly accept that there could be problems. That is why I believe that there must also be a strong degree of education for those taking out pensions, to be sure that they are doing it for the benefit of the rest of their days, rather than for the immediate moment. Such a decision should be considered carefully, and the proper advice given to them.
It is also imperative that the Government give the lead by ensuring that future Governments spend taxpayers’ money responsibly, so I welcome that commitment in the Gracious Speech. Wastage of public money on gimmicks and non-essentials makes the public cynical about the good stewardship of the nation’s finances, especially at a time of cutbacks on essential services for the population.
In further reference to the Gracious Speech and its relevance to Northern Ireland, the over-reliance of Northern Ireland’s economy on the public sector is a continuing cause of concern. The DUP believes in the rebalancing of our economy, but the answer is not to be found in the slash-and-burn approach. Public sector reduction in Northern Ireland needs to be commensurate with private sector expansion. Northern Ireland is moving forward in that regard, and there have been significant and welcome job announcements over the course of the past 12 months—I certainly experienced that in my own constituency. We are seeing the recovery gathering pace in the Province. My party stands ready and willing to work closely with the coalition Government to continue to bed down the recovery and to enable further private sector growth. My colleagues and I are committed to ensuring that our economic recovery in Northern Ireland is stable, sustainable and enjoyed not only in parts, but in every part, of our Province.
We also welcome the commitment in the Gracious Speech to make the United Kingdom the most attractive place to start, finance and grow a business. I await the details that will outline how the Government intend to support small businesses by cutting bureaucracy and enabling them to access finance. Promises have been made on these issues in the past which have seemed to encourage small and medium-sized enterprises in my part of the United Kingdom, across the rest of the Province and across the United Kingdom as a whole, but the results have fallen short of expectations.
We must ensure that banks will lend money to businesses to allow them to grow. We seem constantly to hear that small businesses will be enabled to access finance, but unless banks lend to them they cannot access it. The Chancellor of the Exchequer and the Prime Minister have both encouraged banks to do that from the Dispatch Box, but banks seem to be above even the Prime Minister and the Chancellor of the Exchequer. We must therefore force them to ensure that the money goes to small businesses to allow them to grow as they desire.
There have been some attempts to map the amount of money people borrow from a bank for mortgages and so on and the amount of money that is then lent out to businesses in the same area, but they have been based on wide postcode areas. Will the hon. Gentleman support me and others in asking to have that carried out in a much more detailed way so that we can see the business of the banks and what they are doing in our communities?
I would certainly be delighted to see that, because it would bring out revealing statistics as well as the reality of what is happening on the ground. My constituents are still finding difficulties every time they go to the bank. As for those who desire mortgages, let us see exactly what the real situation is rather than the spin that even the banks put on it.
The Gracious Speech referred to a shared future. Members from throughout the rest of the United Kingdom might not be familiar with the concept in reference to Northern Ireland. In a nutshell, it entails a future in which people’s culture, identity and religion are celebrated and afforded dignity and respect. In that context, the Parades Commission’s most recent determination, made today, about the return parade to Ligoniel Orange hall represents a stark contrast with the concept mentioned in Her Majesty’s Gracious Speech. The Parades Commission has bowed once again to undiluted fascism and the threat of dissident republican force. These are people who support the murder of police officers and soldiers, yet the commission has given in to their demands. Sadly, on top of that, the fingerprints of Sinn Fein agitation can also be seen and today’s decision is repulsive to the ordinary decent law-abiding loyalist and Unionist community. The Secretary of State for Northern Ireland has the power to overturn this ludicrous determination and I strongly urge her to do so.
The DUP welcomes the freeze in fuel duty, but we do not believe that it goes far enough. In Northern Ireland, we pay the highest fuel bills of any region of the United Kingdom. During the years of the Labour Government, fuel duty was a major public concern that resonated throughout the country. In 2000, when the average price was 80p a litre for unleaded and 80.8p a litre for diesel, rising fuel prices prompted protests that brought the country to a standstill. The depth of public anger directed towards the Government of the day over the issue was such that it was the only time during the 1997 to 2001 Parliament that Labour fell behind the Conservatives in the opinion polls.
In many areas throughout the Province, cars are the only mode of transport, as public transport is limited. People can journey to our major cities, but bus timetables mean that getting home later in the evening is absolutely impossible. Public transport can take someone there, but they must stay there because they cannot get home. Trains cover only a limited part of the Province, so they are out of the question. The mode of transport is cars, and fuel costs are a heavy burden on those who have to travel to gain employment.
Fuel poverty is an important issue in Northern Ireland, and as 38% of the population of Northern Ireland live in rural communities they are dependent on cars. Is my hon. Friend aware that the Treasury consulted across the whole of the United Kingdom of Great Britain and Northern Ireland on a fuel pilot scheme that would reduce prices in specific areas and that it received 30 responses, 19 of which came from Northern Ireland? Not one of those schemes will be for Northern Ireland, even though almost two thirds of the responses came from Northern Ireland. Does he feel as annoyed as I do about that?
As one of the Members who pushed in the last Parliament for rural fuel derogation and was successful in this Parliament, I urge the hon. Gentleman to keep going, but to go for a higher rate than 5p. It should be 7.5p a litre.
On this occasion, I am happy to listen to and consider carefully what the Scottish National party has to say. I emphasise “on this occasion”, because on its other policy on the United Kingdom I will not listen to anything that it has to say because it is living in a dream world. I hope that the United Kingdom will remain solidly together after the referendum.
As Leader of the Opposition, the Prime Minister made much of his intention to introduce a fuel duty stabiliser, which would protect hard-pressed families and businesses against any rises in the price of crude oil. Basically, what happens is that as the price of crude oil goes up, the rate of fuel duty charged on petrol goes down to keep the prices stable and avoid the massive fluctuations that we have witnessed recently. On 12 April 2010, some three weeks before people cast their votes in the general election, in relation to the fuel duty stabiliser a Conservative party spokesman said:
“We are very straight with people. This is not a tax giveaway—instead it is a sensible, balanced policy that protects families from big increases in the oil price.”
I wholeheartedly agree with those sentiments. It really annoys my constituents that when crude oil prices increase, there is an immediate increase at the pumps, but whenever they decrease, there is a long period before consumers get any of the benefits. Even when they do go down, they do not go down to the previous level. The Government must look carefully at that.
I welcome the fact that the Government are to introduce measures to protect people who seek to intervene or help in emergencies. If a genuine sense of community spirit is to be re-established, it is imperative that those who seek to help another citizen in distress or danger can be assured that the force of law is on their side and that their community spirit will not result in their being prosecuted for doing what is right.
I want to reflect on another matter that exercises my colleagues in Northern Ireland that is not in the Gracious Speech. As shadow Secretary of State for Northern Ireland, the right hon. Member for North Shropshire (Mr Paterson) toured the Province trying to rally support for the then alliance between the Ulster Unionist party and the Conservative party. One way in which that was attempted was to tell people that the ongoing payment of public moneys to MPs who did not attend this House and fulfil their duties would be ended. That has not happened, and that is a disgrace. Amidst all the other cuts in public expenditure, elected Members of Parliament receive moneys for not participating in debates in this House and representing their people here. That must be acted on. This is the last Gracious Speech of this Parliament and the Government should have delivered on their pledge. I regret that they have not done so, and I urge them once again to do so. We must bring this matter before the House, perhaps through a Back-Bench debate, because it is wrong that people who do not represent their constituents in this House should receive this money. Sinn Fein should not be receiving this money for not representing their constituents in this House.
I want to mention an important issue for us as Unionists and for the people of Northern Ireland in general. We understand that Sinn Fein has been able to claim £600,000 for not sitting on these green Benches. That money would have been better spent on things such as building schools or hospital extensions.
It is important that even now we raise this matter in the House; no party in the House can justify people receiving money when they do not come here to represent their constituents. They can use that money. As elected representatives, we have to answer for our money; IPSA certainly has a right to look at all our expenditure, although that is not so for those who receive money but fail to represent their constituents.
Finally, on reform of the European Union, the right hon. Member for Wokingham (Mr Redwood) mentioned Members from Scotland, Northern Ireland or Wales speaking about English issues. I would say that that is less offensive—we are elected to a House of the United Kingdom—than European legislators legislating for our constituents, telling us what our laws should be and taking sovereignty over certain sections of our legislative process, when this House should be doing that on behalf of our people. The Prime Minister should be encouraged to see what changes he can get. However, at the end of the day, the people of the United Kingdom should make their decision in a referendum. I trust that the promise made by the Conservative party will be supported by Her Majesty’s Opposition and that the referendum will be brought forth sooner rather than later to allow the people to make their decision. They have a right to speak.
We have to look at zero-hours contracts, which have been considered by the Northern Ireland Assembly. We should do everything we can for the working poor; quite a number of people go out to work every day but are caught in a poverty trap. We have to see how we can alleviate much of their and their families’ suffering at this time.
(10 years, 7 months ago)
Commons ChamberThe concern caused by the on-the-runs issue, and the fact that the scheme was not dealt with transparently, have set back the progress on dealing with the past. However, the proposals set out in the Haass No. 7 document provide a good basis for further discussions and I welcome the fact that many of the parties have said that they can support that kind of architecture, despite the fact that further issues need to be resolved before an agreement is found.
Does the Secretary of State accept that honesty is essential in dealing with the issues of the past? Does she also agree that it is time for Sinn Fein leaders to face up to their past of murder and destruction, and to apologise to the people of Ulster for their bloody campaign of terror?
I do believe that honesty and transparency are an important means of dealing with the legacy of the past. The UK Government have taken a lead in taking responsibility where the actions of the state have been wrong, and we would expect everyone involved in the troubles to account for the role that they have played.
(10 years, 8 months ago)
Commons ChamberWe should take a robust approach in defending and promoting the values we care about wherever we engage in the world. We should not hold back from making our views clear, whether about the law on homosexuality in Uganda or the issues in Russia. On the issue of travel bans and asset freezes, they are focused on Russia and Crimea, and that is the right way to do it.
Does the Prime Minister believe that the actions taken or proposed by the EU and the US will actually stop Russian aggression? If they do not stop Russian aggression, has he a clear understanding of what steps should be taken next to stop Russia invading the rest of Ukraine?
The hon. Gentleman makes an important point. What has changed is that the European Council, which had previously resisted the idea of saying that we should prepare economic sanctions, has now agreed—all 28 countries, including those that have quite strong relations or energy relationships with Russia—to task the European Commission with preparing a range of economic sanctions to be put in place if Russia goes into eastern Ukraine. That is an important change. I am obviously at the front end of pushing harder for clarity, because the best way to ask Russia to take the right path is to be clear about the consequence of its taking the wrong path.
(11 years ago)
Commons ChamberThe whole design of individual voter registration—which, let us remember, was first mooted and launched by the previous Government—was precisely to stamp out levels of fraud and wrongdoing on the electoral register. Our view is that as we move towards individual voter registration on the timetable that we have set out—doing so carefully and providing a great deal of information to those who might otherwise not be aware that they need to make the change and comparing different datasets to make sure that those who are legitimately on the electoral register and are on other databases are transferred automatically—we will be able to weed out fraudulent entries on the electoral register within two or three years.
Since the Deputy Prime Minister took over his important office, has the cost of the Deputy Prime Minister’s office increased or decreased, and by how much?
I urge the hon. Gentleman to look at all the detailed figures that we published in October. Unlike any previous Administration, we said exactly how many special advisers there are and what their costs are. Of course a number of special advisers attached to my office support various Departments across Whitehall—something that is necessary in a coalition Government.