Loan Charge

Oliver Heald Excerpts

Thursday 11th April 2019 Commons Chamber

[Stephen Metcalfe]

My hon. Friend makes an excellent point that stands entirely on its own right, and I hope it has been heard.

[Sir Oliver Heald (North East Hertfordshire) (Con)]

On giving latitude, does my hon. Friend agree that these cases vary quite considerably? In some cases, it may be about allowing more time for people to pay; in others, it may be about looking at the detail of the debt and whether there is other evidence to suggest it should be less; and in some cases, it is a question of giving latitude on how many years HMRC goes back.

[Stephen Metcalfe]

My right hon. and learned Friend makes some good points, and I am aware that the Government have set out some of the mitigating measures they want to put in place. I am sure we all welcome those measures, but there is a need for both a pause and a full and proper review of what is being proposed to see whether we are acting in a way that would be considered to be natural justice.

British Bioethanol Industry

Oliver Heald Excerpts

Wednesday 16th January 2019 Westminster Hall

[Nic Dakin (Scunthorpe) (Lab)]

I beg to move,

That this House has considered the future of the British bioethanol industry.

It is a pleasure to serve under your chairmanship, Mr Gapes, and it is good to have the opportunity to discuss the future of the British bioethanol industry when other matters today are focusing people’s minds. I am pleased to see so many hon. Members of different parties here to contribute to the debate.

The bioethanol industry is, regrettably, in a state of collapse. Should this collapse be complete, the industry is unlikely ever to come back again. We are at a seminal point in its life in the UK. I hope that we can convince the Minister to take, on behalf of the Government, the urgent steps needed to secure the future of this important industry. Should we lose it, there will be significant implications not only for the agricultural and transport sectors, but for the wider economy and the UK’s decarbonisation and renewable targets.

I particularly thank the hon. Member for Hereford and South Herefordshire (Jesse Norman), who unfortunately cannot be here to respond on behalf of the Government. He has agreed to meet the British bioethanol industry and me next week. Hopefully this debate will assist in setting out and examining the current issues, including the compelling case why his Department urgently needs to make E10 fuel mandatory at UK petrol stations. Next week’s meeting can get straight to how we can make that happen as soon as possible in 2019 in order to reverse the recent collapse in confidence, production and job losses and secure the future of this important industry.

[Sir Oliver Heald (North East Hertfordshire) (Con)]

Will the hon. Gentleman be willing to let Members who are here today know the outcome of his meeting with Ministers? I remember attending a meeting on the subject of E10 fuel, which I think he organised. I thought that quite a compelling case was made, and it would be interesting to have some feedback.

[Nic Dakin]

The Minister has agreed to meet MPs of different parties who have an interest, particularly a local interest. I would certainly be very keen to update the right hon. and learned Gentleman on the outcome of that meeting. Should he be available and want to join us, I am sure that would be possible.

--- Later in debate ---

[Dr Paul Williams (Stockton South) (Lab)]

It is a pleasure to serve under your chairmanship for the first time, Mr Gapes. I congratulate my hon. Friend the Member for Scunthorpe (Nic Dakin) on securing this debate on an issue that affects my constituents and those of many hon. Members present.

As we have heard, the industry contributes £600 million to the UK economy every year. In response to targets on renewables announced by the Government over 10 years ago, over £1 billion was invested in the UK to create state-of-the-art bioethanol production facilities. Last year, the industry crumbled, and the UK’s two largest plants announced that they were either closing, in the case of Vivergo, or pausing production, in the case of Ensus, which has its headquarters in my constituency and its plant in Teesside.

I visited the plant shortly after I was elected as the Member of Parliament for Stockton South. Construction of the plant triggered about £60 million-worth of investments. Ensus is a job creator, and it also helps to support this country’s goal of reducing greenhouse gases produced by cars and other vehicles. Over 100 skilled workers from Teesside work on the plant, and Ensus supports a further 2,000 north-east jobs in the supply chain, mostly in farming and agriculture. I visited one of the farms in my constituency—where there are not many farms—that supplies the industry. Two thousand jobs are at risk because of the Government’s prevarication.

Ensus is a leading producer of bioethanol. We know that bioethanol is better for the environment and will reduce carbon emissions from transport. It is also well documented just how damaging such transport emissions are to air quality. The emissions damage people’s health and the environment. Air pollution causes heart and lung disease, and in parts of our towns and cities it is making the air not just toxic but deadly. For anything else found to be a contributing factor to 40,000 early deaths in this country, Parliament would have thrown everything including the kitchen sink at it, to do everything possible to fix it. Bioethanol is not a silver bullet to improve air quality, but if the Government backed E10 now, that would go some way towards reducing emissions, which would improve our environment and air quality.

[Sir Oliver Heald]

Does the hon. Gentleman agree that the national message is important, and the Government should hear it? Environmental improvement requires green jobs to come through and green industry to be successful. The Government should encourage that and, in this particular case, to have E10 available in Britain is a no-brainer.

[Dr Williams]

I thank the right hon. and learned Gentleman for making that point more eloquently than me. It is difficult to understand what the barriers to the introduction of E10 might be. Environmental improvement needs to happen through a series of incremental steps—there is no silver bullet—but this one seems to be a win-win.

The owners of Ensus have pointed the finger for the mothballing of their plant in Teesside squarely at the

“sluggish implementation of political objectives for reducing greenhouse gas emissions”.

Three years ago, the Department for Transport recommended doubling the amount of ethanol in fuel; three years later, we are still waiting for action. That means that the investment is paused. A huge plant is lying dormant, with workers on stand-by. Without the introduction of E10, bioethanol demand cannot increase above its current level and therefore cannot contribute to further decarbonising petrol. As a result, the future of the Ensus plant remains in question.

I therefore ask the Minister to address in her response how, if there is no demand, the Government plan to replace the jobs that Ensus provides? How long will she let the UK lag behind the likes of Germany, Australia, New Zealand, Canada and the USA, which already back E10? Is the Minister willing to do all that she can to improve air quality in this country, with E10 being one step towards that?

My constituents ask me to come down here to Westminster every week to vote for jobs in Teesside. I am also here to make the case for a fair deal for the north-east, to help boost investment in our region, and to support and protect the jobs of people on Teesside.

Animal Welfare (Service Animals) Bill (First sitting)

Oliver Heald Excerpts

Wednesday 16th January 2019 Public Bill Committees

[The Chair]

With this it will be convenient to take clause 2 stand part.

[Sir Oliver Heald (North East Hertfordshire) (Con)]

It is a great pleasure to serve under your chairmanship again, Ms Buck. I know that you will keep us in good order. Thank you very much indeed for allowing Finn, the most decorated police dog in the land, to be here in Committee today.

I thank the hon. Members who have been selected for the Committee. They have all been great supporters of this small but important change in the law. I also thank all those who have campaigned for it, including PC Dave Wardell, Sarah Dixon of the Finn’s law campaign, the many animal charities that have given support, including the International Fund for Animal Welfare, which is represented here today, the media—support for Finn’s law has united The Sun and the Daily Mirror—and every police and crime commissioner in the country. I am grateful, to you, Ms Buck, for agreeing that Finn can sit in, accompanied by PC Wardell.

The Bill, which received its Second Reading on 6 July last year, arises from events that I explained to the House in a ten-minute rule Bill application on 5 December 2017. My constituent, PC Dave Wardell, is a police dog handler from Buntingford, where he lives with his family, Finn, and other dogs. Finn has of course now retired, but on Wednesday 5 October 2016 PC Wardell and Finn were on duty in Stevenage. I am pleased that my hon. Friend the Member for Stevenage, who has been so supportive, is here today.

PC Wardell and Finn were called to a suspected robbery. They followed the suspect, who ran off. He was found hiding in a garden. A light suddenly came on, revealing him. PC Wardell called on him to stop, but the suspect jumped to try to get over a fence, and Finn took hold of his lower leg. The man lunged at Finn with a hunting knife with a 10-inch blade and stabbed Finn right through the chest. He then turned his attention to PC Wardell, and Finn intervened to save the police constable as the blade was aimed towards his face. Finn put himself in the way to save the officer and PC Wardell received a hand wound, but the dog received further serious injuries. PC Wardell believes that Finn saved his life.

As other officers arrived the suspect was apprehended, but Finn was badly injured and bleeding. He was taken to the vet, and then to a specialist vet. He was in terrible shape, with his lungs punctured in four places, yet he was still licking his handler’s hand wound. Finn had a four-hour operation to save his life. The vet commented on the strength and bravery of this dog. PC Wardell slept downstairs with Finn for the next four weeks. I think we are all pleased that Finn made a remarkable recovery. After 11 weeks Finn was ready to go back to work and with PC Wardell he went on their first shift on 22 December 2016. On that occasion—their first outing after the incident—they arrested a fleeing suspect.

Finn is one of the most successful police dogs in the country and is renowned in Hertfordshire. He has won national awards for his bravery, including animal of the year in the IFAW Animal Action awards, hero animal of the year in the Animal Hero awards and the People’s Dispensary for Sick Animals gold medal, which is known as the animals’ George Cross. However, when it came to charging the offender it became clear that there is a problem with the law. For the assault on the officer there was the obvious offence of assault occasioning actual bodily harm, but there were only two potential charges for the injuries to Finn himself: causing unnecessary suffering to an animal, under the Animal Welfare Act 2006, or section 1 of the Criminal Damage Act 1971. Neither offence properly provides for the criminality involved in the attack on Finn.

In the event, the charge was criminal damage, but that treated Finn as though he was simply a piece of damaged police property, like a police radio or something of the sort. The Minister for Policing and the Fire Service, my right hon. Friend the Member for Ruislip, Northwood and Pinner (Mr Hurd), told me in a letter that it is unpalatable to think of police animals simply as equipment. Criminal damage is an offence for which the penalty is largely determined by the value of the damaged property—a seven-year-old police dog close to retirement is not worth much money—and so it proved at court, where no separate penalty was imposed on Finn’s attacker for the attack on the dog.

The offence under section 4 of the Animal Welfare Act 2006 is potentially a better route, but it has two problems at the moment. The first is that the maximum penalty is only six months’ imprisonment. After a consultation, which I think was partly based on what happened to Finn, the Government have committed to increase the maximum penalty to five years’ imprisonment. That still leaves the other issue, which is that there is a difficulty with the application of section 4(3)(c)(ii) of the Animal Welfare Act. Various factors must be taken into account in deciding whether the infliction of suffering to an animal can be considered unnecessary, including protection of a person or property. There is currently no reference at all in the Act to the particular role of service animals.

Clearly, the mission of a service animal is to restrain a suspect or use its physical presence to support the actions of an officer in accordance with his or her duty, but there is no reference to that role in the Act. We have heard from police dog handlers, prosecutors and all the police and crime commissioners in the country that there is concern that that provision allows defendants to argue that they are justified in applying force against a service animal in self-defence, rendering the force necessary. That has been an issue in deciding not to prosecute for the offence under the Animal Welfare Act.

I want to thank Department for Environment, Food and Rural Affairs Ministers, particularly Lord Gardiner, my right hon. Friend the Member for Surrey Heath (Michael Gove), and the Minister—he and I have a long history of considering animal welfare issues, going back to the 1990s—for discussing this issue with me at length and for supporting the Bill, which is the outcome of those discussions. This Bill follows the example of the Australian Animal Welfare Act, which makes specific provision for service animals. I could add that this approach is becoming the norm in advanced countries, and that is a good thing.

Clause 1 provides that the consideration in section 4(3)(c)(ii) of the Animal Welfare Act should be disregarded if the animal was under the control of a relevant officer at the time of the conduct, and was being used by the officer in the course of their duties in a way that was reasonable in all the circumstances. A relevant officer is defined as a police constable or person such as a prison officer, who has the powers of a constable, or persons in analogous positions. It also provides that Ministers can add to that list.

Clause 2 makes provision for commencement and formalities. It applies to England and Wales. This change to the law, when taken together with the Government’s increase in the animal welfare penalty, will mean that there is, for the first time, suitable protection for service animals and a proper sentence for offenders.

Service animals such as Finn do a great job. There are 1,200 police dogs in service at any one time, and there should be proper recognition in the law of their vital role.

[John Spellar (Warley) (Lab)]

Before the right hon. and learned Gentleman finishes, may I, on behalf of many colleagues—not just those on the Committee—commend him not only for introducing this Bill but for the tenacity with which he has finally brought it to Committee? I hope, now that we have reached this stage, that it will speedily move through our House and the House of Lords.

[Sir Oliver Heald]

I thank the right hon. Gentleman for that. Sometimes the House can come together and do good things, and this is an example of that. Perhaps we will see other examples before too long. I thank him and I commend the Bill and clauses 1 and 2 to the Committee.

[Stephen McPartland (Stevenage) (Con)]

I just want to speak briefly, as the incident happened in my constituency of Stevenage, and I want to put on the record my thanks to PC Dave Wardell, police dog Finn, and the campaigners, and to my right hon. and learned Friend. Without his vast experience of being Solicitor General and his roles in the Ministry of Justice, we would not have been able to get the Bill written in such a form as to get past all the blocking tactics we found within some Government Departments.

I fully support the Bill, as do all Members in the House, as I understand. I thank my right hon. and learned Friend for the great work he has done in creating this cross-party passionate effort to ensure that working service animals are protected.

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

I thank everyone on the Committee today, particularly the right hon. and learned Member for North East Hertfordshire for introducing this extremely important Bill. It is absolutely and fully supported by the Scottish National party and the all-party parliamentary dog advisory welfare group, which I chair. We have had the pleasure of a visit from Finn and Dave Wardell to meet parliamentarians and speak about the tragic case and why it is so important for the Bill to be enacted, in order to correct the wrong of treating service animals as objects under the law, and for us to congratulate these service animals, in line with public opinion, on all the work they do to keep citizens safe, and to protect them going forward.

A proposal is already going through the Scottish Parliament and these measures have been accepted there as a Bill. I am hopeful that we can move forward collectively to ensure that animal welfare standards, particularly Finn’s law, go forward with aplomb today, and that we add to those levels of protection across the United Kingdom.

[Sir Oliver Heald]

I should perhaps have mentioned that in Scotland, where this is a devolved matter, all parties are making common cause to have Finn’s law there. There is also a campaign in Northern Ireland, so I hope that eventually the whole of the United Kingdom will be covered.

[Dr Cameron]

I thank the right hon. and learned Gentleman for his intervention. That is correct, and we need to ensure that this law is strengthened across the United Kingdom.

I would also like to pay particular tribute to Mossneuk primary school in my constituency, which had Finn and Dave through. Every single pupil in primary 6 sent letters to the First Minister of Scotland every day for a month to ensure that this legislation happens in Scotland. I thank everyone involved, all of the organisations, and Dave and Finn. I and my party fully support the Bill.

--- Later in debate ---

[David Rutley]

The right hon. Gentleman suggests cheekily that we did yesterday. I am not so sure I agree with that, but today we will stick with animal welfare where we have broad agreement.

My right hon. and learned Friend the Member for North East Hertfordshire has brought together an impressive cast. We have former policing Ministers present, my right hon. Friend the Member for Hemel Hempstead and the right hon. Member for Delyn, and two former animal welfare Ministers, the right hon. Member for Knowsley and the hon. Member for Poplar and Limehouse.

[Sir Oliver Heald]

And a former Cabinet Minister.

[David Rutley]

Yes, the right hon. Member for Exeter.

--- Later in debate ---

[David Rutley]

I confirm that it certainly has not been forgotten, we just need to find a way forward in a very difficult situation.

I conclude by saying that I hope that Committee members are aware that, building on the tradition of previous Governments, this Government are taking forward a huge amount of important animal welfare legislation. It is at the top of our agenda. We are increasing sentences for animal cruelty, which we have talked about. We have brought in mandatory CCTV in slaughterhouses, a ban on the use of electronic shock collars on pets and, just before Christmas, we announced a ban on third-party sales of puppies and kittens. Those are very important pieces of legislation that have huge support across the House, which we are grateful for.

We are very clear that attacks on service animals such as brave Finn will not be tolerated. That is why we support the Bill and the additional protection it provides for our service animals. We will do all we can to support its swift passage without amendment through the Commons and the Lords as soon as possible. We also support the appropriate work in Scotland, Wales and Northern Ireland. I am very grateful for the cross-party support for the Bill, and the Government will ensure that we do the same.

[Sir Oliver Heald]

I thank everyone who has contributed to this short but constructive debate. Rather than making the usual point of order, may I also thank you, Madam Chairman, the officials from the Department, the Hansard writers, the attendants who have kept us safe, and everybody in the House who has facilitated the process, including the Clerk to the Committee, for being so helpful?

There were no other particular points for me to make. I looked into whether the Bill could apply to Northern Ireland, but apparently the legislation—the Welfare of Animals Act (Northern Ireland) 2011—is slightly different from that of England and Wales. That would make it difficult to apply and, possibly, make the Bill impossible to pass, so I did not pursue it, but I actively support the campaign in Northern Ireland. Thank you.

Question put and agreed to.

Clause 1 accordingly ordered to stand part of the Bill.

Clause 2 ordered to stand part of the Bill.

Bill to be reported, without amendment.

Finance (No. 3) Bill

Oliver Heald Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 8th January 2019 Commons Chamber

[Helen Whately]

I absolutely agree and that is one reason why we have to look at policies in the round. I completely support the policy of taking people out of income tax, but let us look not just at that. Let us look, for example, at the strong economy, at the opportunities that gives people and, beyond that, at the strength provided by having a family and community around people, which also provides the social capital to be able to make the most of their lives.

[Sir Oliver Heald (North East Hertfordshire) (Con)]

Does my hon. Friend agree that the challenge for Parliament changes over time? In the Labour years we were very concerned in Parliament about the number of workless households—there were 3 million then. There are now a lot more people in work, but there is this issue, which has been rightly raised, of the quality of that work, of the skills involved and of whether it rewards people adequately. That is the new challenge, but we are making progress.

[Helen Whately]

I thank my right hon. and learned Friend for his intervention.

The hon. Member for Gedling spoke earlier of his frustration. He did not want people to talk about changes in percentages and there being perhaps a few fewer people in poverty, but actually the numbers do matter. The numbers tell us what is happening, and the numbers are moving in the right direction, which is really important. The fact that the numbers are moving in the direction of our having fewer workless households should not be sniffed at or dismissed. Achieving that has been a challenging job, and it has involved a significant effort from many people.

ONS Decisions: Student Loans

Oliver Heald Excerpts

Tuesday 18th December 2018 Commons Chamber

[Elizabeth Truss]

That is a slightly strange question from the hon. Lady, given we have just seen the highest real wage growth for 10 years coming through our economy.[Official Report, 20 December 2018, Vol. 651, c. 6MC.]

[Sir Oliver Heald (North East Hertfordshire) (Con)]

Does my right hon. Friend agree with me that part of the ONS thinking is based on the fact that the amount someone has to earn before they start to repay has been increased very substantially under this Government, saving hundreds of thousands of students £300 or £400 a year? The effect of that, however, is that less of the money is repaid quickly or, indeed, at all.

[Elizabeth Truss]

My right hon. and learned Friend is right to point out that people do not pay back on their student loan until they are earning £25,000.

Draft Capital Requirements (Amendment) (EU Exit) Regulations 2018 Draft Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018

Oliver Heald Excerpts

Wednesday 12th December 2018 General Committees

[John Glen]

It is a pleasure to serve under your chairmanship, Ms Buck. As has been said before, Her Majesty’s Treasury, as part of preparations for the UK’s withdrawal from the EU, is laying statutory instruments under the European Union (Withdrawal) Act 2018 to ensure that there continues to be a functioning legislative and regulatory regime for financial services in the UK in the event of a no-deal scenario. That includes the two SIs we are debating today, which will fix deficiencies in UK law relating to the UK’s prudential regime for credit institutions and for bank resolution. As with other SIs that the Treasury has laid and debated under the 2018 Act, they are designed to provide continuity at the point of exit by maintaining existing legislation, but amending it where necessary to ensure that it works effectively in a no-deal context.

The first SI being considered today concerns the prudential rules that apply to banks, investment firms and building societies under the framework set by the EU capital requirements regulation and capital requirements directive. The second SI relates to the bank recovery and resolution directive, which sets out requirements for ensuring that bank failures can be managed in an orderly way and provides a common EU framework for firm resolution. In a no-deal scenario, the UK would be outside the European economic area and the EU financial services framework. The SIs will make amendments to retained EU law so that the legislation would continue to function effectively in a no-deal scenario.

The draft capital requirements regulations will make amendments to the retained EU capital requirements regulation and the domestic secondary legislation that implemented the EU capital requirements directive. The draft regulations will make the following principal amendments. First, they will make changes to the group consolidation regime for liquidity and capital. Current EU legislation allows EU banking groups to report a single set of figures for their activities across the EU. The SI will amend those requirements, so that they operate at UK level only. That will not affect the application of consolidated capital requirements, which are already calculated and reported on a national basis, but it will introduce an additional layer of liquidity consolidation in the UK, as liquidity is currently consolidated at EU level.

Secondly, the draft capital requirements regulations will remove the preferential capital treatment available for exposures to certain EU institutions and assets, including sovereign debt. For example, the EU capital requirements regulation does not require firms to hold capital for EU sovereign debt, because it rates those exposures with a zero risk weighting. That is to incentivise investment in certain EU asset classes. In line with our general approach, we will not grant the EU unilateral preferential treatment in the absence of an assessment of equivalence after exit day. We would therefore not automatically continue with the regime of preferential capital treatment for EU assets.

The draft capital requirements regulations will also remove the requirement for UK regulators to seek approval from EU institutions for the use of macroprudential tools to deal with systemic risk, including action that may need to be taken in a financial crisis.

[Sir Oliver Heald (North East Hertfordshire) (Con)]

My understanding is that during the implementation period, we will continue to take the EU laws in this area, so the CRR will be part of our law anyway, and we will look to maintain that position until we reach a new agreement. Is the Minister saying that if we had a no-deal exit, we would do something different and we would not want to retain the position in that way while we negotiated a Canada deal or something of that sort?

[John Glen]

I am grateful for my right hon. and learned Friend’s intervention. What we would do in a no-deal scenario in respect of CRR II, which is in flight at the moment within the EU, would be to use the Financial Services (Implementation of Legislation) Bill, which came before the House of Lords last week and will hopefully come to the Commons at some point in late January. That would give us discretion on how or whether to implement the file that would then land after our exit from the EU, or part of that file, based on what makes sense for the UK economy. We have listed in that Bill all in-flight files, and we would make a decision on the suitability of its inclusion in UK law at a future point following our exit.

To conclude on the first SI, removing the requirement to seek approval from EU institutions is necessary so that UK regulators are able to continue to exercise the macroprudential functions that Parliament has given them. Effective exercise of those functions is essential to maintaining the stability of the UK financial system.

Moving on to the second statutory instrument, the bank recovery and resolution SI will amend the Banking Act 2009 and related domestic and retained EU legislation, with the following principal amendments. First, the draft regulations will amend the scope of the UK’s third-country resolution recognition framework to include EEA-led resolutions. This will ensure that in a no-deal scenario, the same approach will be followed for EEA countries and other third countries in recognising third-country resolution actions. We have that arrangement now with the USA, for example, and we would have to treat EU countries in the same way, or similarly. The UK’s approach to recognising third-country resolution actions has been and will continue to be consistent with our G20 commitments.

The refusal of the UK to recognise a third-country resolution action is only permitted where the Bank of England and the Treasury are satisfied that one or more statutory grounds for refusal exist. Those grounds are: first, that recognition would have an adverse effect on UK financial stability; secondly, that it is necessary for the Bank of England to achieve one or more of its special resolution objectives; thirdly, that a third-country resolution action treats UK creditors less favourably; fourthly, that recognition would have material fiscal implications for the UK; or fifthly, that recognition would be unlawful under the Human Rights Act 1998.

Secondly, the bank recovery and resolution SI will remove deficient references that require UK regulators to follow the specific operational and procedural mechanisms set out in the bank recovery and resolution directive to co-operate with EEA authorities. The removal of these references will not, however, prevent UK regulators from choosing to co-operate with their EEA counterparts after exit. UK regulators will remain able to share information with EEA authorities in the same way that they currently do with authorities in third countries, such as the United States. Additionally, the UK will continue to participate in international crisis management groups, which enhance co-operation between home and host authorities of systemically important banks. Finally, the draft regulations address deficient cross-references to the bank recovery and resolution directive in UK legislation, and ensure that delegated regulations retained by the European Union (Withdrawal) Act continue to be workable following exit.

In line with the approach the Government are taking across all files laid under the European Union (Withdrawal) Act, both SIs transfer a number of functions currently within the remit of EU authorities, in particular the European Banking Authority and the European Securities and Markets Authority, to the relevant UK bodies. Those functions, such as the development of detailed technical rules on certain provisions of the regulations, will now be carried out by appropriate UK authorities, namely the Financial Conduct Authority, the Prudential Regulation Authority or the Bank of England. This is appropriate, given the regulators’ expertise in prudential and resolution policy and in the supervision of global firms. The regulators are currently undertaking public consultations on the changes they propose to make to binding technical standards. The SIs further confer regulation-making powers on the Treasury to replace delegated powers that were previously conferred on the European Commission, in line with the approach taken across other Treasury legislation.

To summarise, the Government believe that both SIs are needed to ensure that the regulatory regime applying to banks, building societies and investment firms works effectively if the UK leaves the EU without a deal or an implementation period. I hope that colleagues across the Committee will join me in supporting the regulations, which I commend to the Committee.

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[Alison Thewliss (Glasgow Central) (SNP)]

It is a pleasure to see you in the Chair, Ms Buck.

I want to pick up where my colleague the hon. Member for Stalybridge and Hyde left off. This week, we have lurched closer to the prospect of a no deal Brexit due to the incompetence of the UK Government and Back Benchers who are more interested in feathering their own nests than in the interests of the country as a whole. It is utterly ridiculous for my constituents to see all these shenanigans as the clock ticks and we get ever closer to the point where the UK leaves without a deal.

We have the ridiculous prospect of the Prime Minister touring EU capitals only to find, as was totally predictable and inevitable, that people are not interested in speaking to her—the deal is already done as far as the EU is concerned. All of this is a distraction at a time when we should be focusing on the economy and on those people at the very bottom who are losing out massively as a result of UK Government policies.

We are here today to look at these statutory instruments in further detail, which is hidden away in these Committees rather than being scrutinised in a more open way. It is interesting to look at both instruments and their wider implications such as the familiarisation costs, which I mentioned at a previous SI Committee. The capital requirements regulations will have a total familiarisation cost of £1.7 million, which is absolutely huge. Businesses are being asked to bear those costs as a result of a decision that was not theirs. It will have a huge impact.

The FCA estimates that around 800 businesses will be affected. The Bank of England estimate is 209, so some 1,009 businesses will be affected. I ask the Minister, as I often do, how that is being communicated to those businesses because the clock is ticking, and they need to know and make preparations. The Fraser of Allander Institute mentioned yesterday in its report that small businesses are under-prepared for the prospect of a no-deal Brexit. For a long time, perhaps we hoped that that might not happen, but who knows whether that will remain the case? The Government have a job of work on their hands to ensure that all those businesses are aware of what might happen in the event of a no deal Brexit, and what it will mean for each and every businesses across this country.

The Financial Markets Law Committee is concerned, as I am, about the regulatory burden on the Bank of England, the Prudential Regulation Authority and the Financial Conduct Authority. How will they cope with the additional work coming to them? They are concerned about the recognition in UK law as things progress, withdrawing from the shared protections we have in the EEA and the impact on the market as a whole.

[Sir Oliver Heald]

Under the withdrawal Act, of course, EU law just comes into our law on the day we leave, but it would be ineffective in this area because there are a lot of references to institutions that we will no longer be in. Does the hon. Lady agree that the regulations are needed?

[Alison Thewliss]

I do not dispute that they are needed. I am not sure that Brexit is needed, but that is a different argument for a different day. The note mentions that the FCA and PRA will be updating the rule books in time for exit day. I want to press the Minister a wee bit more about what stage the preparations are at, and whether the expectation is that they will be ready in time. What progress has been made?

As to the capital requirements and, under the CRR, the binding regulations to co-operate and share information with EEA authorities, removing them and moving to a more discretionary system within it obviously means there is a question as to how we maintain the rigour of the system. If it is going to be sharing on a discretionary basis rather than being obliged to do so as part of the system, how will we ensure that things are going to work properly and as well as they can work at the moment? How do we prevent the slide towards another financial crash in a system that is more discretionary rather than one that obliges us to do certain things?

I want to mention research from the London School of Economics, and concerns about the impact that everything that is happening has on the UK’s voice in the shaping of the regulations:

“The weakened UK voice means that opposition to greater harmonization and EU calibration of international standards may be less strong in the Council than it was over the original CRD IV negotiations. Conversely, while the UK can be expected to support the proposal to lift certain of the contested CRD IV remuneration rules from smaller and less complex firms, other Member States may be less accommodating and more influential.”

Again, that relates to the loss of the UK voice in all such matters. We end up in the worst of all worlds as a result of the decision. We become rule takers and have less influence over the things that affect financial services, which are a huge part of the economy of the UK and my constituency. I hope the Minister addresses those concerns.

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[John Glen]

The Government and regulators are clear on the imperative to work closely with industry to ensure that change is not disruptive for firms. UK regulators will be given the ability to phase changes in over the next two years. We will treat all third countries similarly, which means, to answer the point made by the hon. Member for Glasgow Central, continuing to co-operate through international crisis management groups to plan and resolve issues with cross-border firms. The UK’s participation, and enthusiasm to participate, in such forums will be undiminished. Nothing in the draft regulations will change how the UK co-operates with third countries.

The hon. Member for Stalybridge and Hyde raised the bank recovery and resolution SI and concerns around the appearance of disengagement. There is no intention whatsoever for the UK Government or regulators to be isolated in any way. We will continue to participate. However, these steps are necessary to domesticise our regulations in the context of a no-deal scenario.

The hon. Member for Glasgow Central has on several occasions, and perfectly sensibly, mentioned the regulatory burden and additional costs. She is right to draw attention to the £1.7 million assessment for the capital requirements SI and the £400,000 for the bank recovery SI. I point out to her that those are one-off familiarisation costs. For the 1,000 companies she mentioned, they are one-off costs of around £1,700 and £1,200 for some of the very biggest institutions. I accept that it would be desirable for them to not have those costs, but it will be necessary in a situation in which we do not secure a deal.

[Sir Oliver Heald]

If we were to import all European law into our law in a form that was ineffective and hopeless, would there be costs to the City and to our financial institutions of having an ineffective system? It is all very well for the hon. Member for Glasgow Central to criticise the cost of the regulations, but without them we would not have a system that works.

[John Glen]

My right hon. and learned Friend is of course correct. We are creating as smooth as possible a scenario in a no-deal situation. The costs would be much greater if we did not do so. However, I stress that we seek to maintain close relationships with all third countries.

Oral Answers to Questions

Oliver Heald Excerpts

Tuesday 11th December 2018 Commons Chamber

[John Glen]

The Government hold a 62.3% shareholding, but we do not run the bank. Decisions on the branch network are a matter for the bank.

[Sir Oliver Heald (North East Hertfordshire) (Con)]

Is my right hon. Friend aware that one of the most successful companies in our country, Johnson Matthey in my constituency, is committed to having a fair-deal, not a no-deal Brexit because it feels that it is vital that there should be an orderly retreat, not chaos? Does he agree that the Prime Minister’s deal would achieve that?

[Mr Hammond]

Yes, and that is indeed the express view of the vast majority of businesses in this country.

European Union (Withdrawal) Act

Oliver Heald Excerpts

Thursday 6th December 2018 Commons Chamber

[Sir Oliver Heald (North East Hertfordshire) (Con)]

I pay tribute to the Prime Minister for her dedication, hard work and resilience in these extremely difficult negotiations with the EU.

I start by making it clear that I have always been a supporter of European co-operation. The EU has been an important economic expression of the western alliance. In the 1980s, when countries looked to the west for freedom and security, they were looking partly for important economic freedoms, which they saw as being represented by the EU.

I had no doubt when the referendum came that I should support staying in the EU. I was a founder member of ConservativesIN. I campaigned hard, and I said throughout that I would accept the national verdict, but I was as disappointed as my right hon. Friend the Member for Mid Sussex (Sir Nicholas Soames) when we lost the referendum.

I will be voting for this agreement next Tuesday. I never thought I would do such a thing, but I will be voting for Brexit. It will be hard for me to do that, but I am compromising because I think I have to do so, given the vote of the people. I am a democrat, and this is something I just have to do, but it will not be easy.

My area relies on advanced integrated European manufacturing, and we have enormous businesses. For example, we have Johnson Matthey, a FTSE 100 company, in Royston. It is a world leader in catalysts and chemical technology, and it has 2,000 employees in Royston. The company is desperate that we should have an agreed deal, and the CEO has written to me this morning:

“Our business relies on just-in-time supply chains, closely aligned regulatory frameworks and access to scientific cooperation networks…any disruption will adversely affect the competitiveness of our business and…future innovation, trade and investment…an agreed ‘Deal’ is better than ‘No Deal’… It allows us to work with our customers and suppliers to maintain business and plan strategically for future trade scenarios.”

Johnson Matthey is not a company that took sides in the referendum. My hon. Friend the Member for Mid Bedfordshire (Ms Dorries) might like to know that the company is optimistic that we can build a globally competitive Britain post Brexit, but the point it is making is that we must avoid the disruption of a no-deal Brexit.

The Attorney General has done a marvellous job of explaining the legal position on the backstop to the House. He did it in an exemplary fashion while also defending client privilege and the Law Officers’ convention. It is true that the backstop arrangements are unsatisfactory, but the legal basis for it is a temporary one, and there is no question but that, if it comes to a point where negotiations have broken down, there are things that can be done—a joint conference and independent arbitration—to resolve the matter. As the Attorney General made clear, performance in good faith is a key concept of international law. For rule-of-law countries not to perform a treaty in good faith would be extremely damaging to their international reputation and standing.

Above that, permanent continuation of the backstop would be vulnerable to legal challenge in international law, on the basis that the treaty purpose had ended in that no agreement had been achieved, and could not be achieved. That would allow a challenge under article 62 of the Vienna convention of 1969, and under EU law because article 50 provides a legal basis for a temporary arrangement only, namely an orderly withdrawal. I am confident that the backstop could not last forever.

When the Attorney General was asked this question by my right hon. Friend the Member for New Forest East (Dr Lewis), he said that, no, it would not be permanent. He has to make a decision, as I do, on how to vote, and he said he would look at the legal risks and, having assessed them, he will vote with the Government, because he believes that the risks are such that it is still better to follow this agreement. I share that view. Overall, my judgment, like the Attorney General’s, is that we should support the Prime Minister in this.

Britain is a strong country, capable of weathering storms, but that does not mean we have to call down the heavens upon us. We must deliver a Brexit that brings out better weather, gives the UK the opportunity to put a spring in its step and puts the storm clouds behind us. It is time for a deal. It is time to compromise.

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[Dr Fox]

I hate to bring this to the hon. Gentleman’s attention—it will no doubt come as a shock—but we have had a trade deficit since the 1980s. In fact, one of the few times when we have not was in February this year, when the UK became a net exporter for the first time in some time. The hon. Gentleman will no doubt be overlooking those facts because they do not suit his narrative.

[Sir Oliver Heald]

rose—

[Dr Fox]

I give way to my right hon. and learned Friend, but then I will make some progress, much as I am enjoying this.

[Sir Oliver Heald]

I pay tribute to the work done by my right hon. Friend in talking to our trading partners around the world in contemplation of having new trade agreements once we are into the implementation period. Does he agree that one of the strengths of the deal that the Prime Minister has negotiated is that we can go into the implementation period, negotiate, ratify and sign the trade deals, ready to go? If we do not take this deal and just fall out of the EU, we will not get that chance, so it is very important that we do take it.

[Dr Fox]

My right hon. and learned Friend is right. It is certainly true that the draft political declaration was not as favourable to an independent trade policy as the final declaration is, given the changes that the United Kingdom insisted on in that negotiation. I was much heartened by those changes, not least because the declaration talks of building on and improving customs co-operation, not just building on it, and it cross-references the other elements of that to include protection of our independent trade policy.

Draft Financial Services and Markets Act 2000 (Claims Management Activity) Order 2018

Oliver Heald Excerpts

Monday 19th November 2018 General Committees

[Mr Bacon]

I agree, Mr Bailey. I will make one further point, to which the right hon. Lady alluded. We cannot assume that the solicitors who continue to engage in the process and are exempt because, in the words of the Minister, they are regulated separately through the Solicitors Regulation Authority, will all be as high-minded as one would hope they would be as solicitors of the Supreme Court. They might not be. My concern is not that we have dual regulation. Like the Minister, I very much hope that we avoid dual regulation. My concern is that we avoid creating opportunities for regulatory arbitrage.

[Sir Oliver Heald (North East Hertfordshire) (Con)]

For my sins, I think I served in Committee for both the Compensation Act 2006 and the Legal Services Act 2007. The point is that claims management companies were brought under regulation in 2006. Solicitors got a hefty improvement, or increase, in their regulation the following year.

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[John Glen]

It would be a criminal offence, but I will be happy to clarify the situation exactly in a letter to my hon. Friend subsequently. I think that I have covered the point about the SRA and regulatory arbitrage.

A point was raised about other sectors—this point came through a lot in the passage of the main legislation —by the hon. Member for Garston and Halewood. The Government are actively examining the extent of the coverage. According to my initial statistics, in 2017-18 financial products and services claims made up 79% of CMC turnover and personal injury made up all the remaining turnover. A point that has often come up is about coalminers. If they do not already come under personal injury, we will be able continually to observe, and possibly extend, coverage, based on whether a discrete additional category is needed.

In relation to the next steps on this regulation, if the Committee approves the order today, the regulation will transfer to the FCA on 1 April 2019. The FCA regularly updates its rulebook. It is a robust regulator, which I have frequent dialogue with, and is subject to scrutiny.

[Sir Oliver Heald]

Does my hon. Friend agree that since 2006 there has been a problem in finding the right regulator for CMCs? The advantage of the FCA is that it is a big regulator that already covers a lot of businesses and has a lot of capacity to tackle the area, unlike the original trading standards-type regulation that was introduced in 2006. It was always intended that what the MOJ did would be a temporary measure. Is it not to be welcomed that the area will now have a robust and substantial regulator?

[John Glen]

I entirely agree. That is the purpose of the draft order, which will enable claims management regulation to be transferred to the FCA and the Financial Ombudsman Service. Given the breadth of their existing regulatory oversight, that will satisfy the concerns of those who want a more robust regulatory regime in place. Consumers will benefit from a well-regulated and professional claims management industry. The industry can provide important services to some consumers, but there needs to be confidence in how difficulties are handled.

Finance (No. 2) Bill

Oliver Heald Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Wednesday 21st February 2018 Commons Chamber

[Stephen McPartland]

It is a great pleasure to be called in this debate and to follow such wonderful speeches from my colleagues. I understand that the Treasury publishes the distributional analysis of the cumulative impact of the Government’s tax, welfare and public services.

I have never been shy about voting with the Opposition if I believe that they are right, but I do not believe they are right in this case. That is because the review that they are asking for, which focuses predominantly on households with different income levels, and issues around Treasury analysis, just provides more data and more analysis, and that is not going to help people on the lowest incomes or those from disadvantaged backgrounds to move forward in life. It seems to be very academic as opposed to actually helping people to push forward and achieve opportunities. For me, the real challenge in this country is inequality in opportunity and in life chances. At the moment, the best way of changing one’s life chances is still through getting a great education. I am proud of the Government’s record, with millions more children being educated in good or outstanding schools. We should all be proud of that on both sides of the House.

As I say, I am not shy about voting with the Opposition if I believe they are right. I have campaigned on—

[Sir Oliver Heald (North East Hertfordshire) (Con)]

Does my hon. Friend agree that in Hertfordshire we have seen a lot of investment in the schools sector, which is helping to achieve the sort of results that he is talking about, with, for example, Highfield School in my constituency being completely rebuilt recently?

[Stephen McPartland]

I do agree with my right hon. and learned Friend. I have another colleague from Hertfordshire here as well—my hon. Friend the Member for Hitchin and Harpenden (Bim Afolami). We have seen massive investment in our area. I am very proud of the number of primary schools that have been expanded and rebuilt in my constituency. A couple of secondary schools have also been rebuilt, creating great opportunities for the pupils. I am also very proud that all the primary schools in my constituency are rated “good” or “outstanding”. It is probably one of the few constituencies in the country where that is the case. Four of my six secondary schools are good, and the other two we are currently dealing with. I hope that by the time of the next election I will be one of the few Members of Parliament where every single child in my constituency will be in a good or outstanding school.

I do not believe that new clause 9 provides equality of opportunity and equality of aspiration. It will do nothing to help people in my constituency from disadvantaged—

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[Sir Oliver Heald]

I am sure my hon. Friend agrees, as many would, that the Treasury produces excellent research documents, and research is an important thing, but are these further demands for research not indicative of the difference between the parties, which is that they are the researchers, and we are the doers?

[Stephen McPartland]

I could never disagree with my right hon. and learned Friend. He always makes a powerful point.

One of the biggest challenges in society is intergenerational fairness. I do not think that new clause 9 captures some of the issues we face as a society and the challenges facing different generations. There are some people living in large houses, paying high council tax rates and on very low fixed incomes. There are young people who may be considered quite affluent but still cannot afford to purchase a property in their part of the country. In a different part of the country, they could easily afford to purchase a property but may not be able to get a job, so cannot get a mortgage. Intergenerational fairness is incredibly important, and the Government have tried to spread wealth throughout the country through the northern powerhouse.

I think that the Conservative Government have tried very hard. They have not always got it right, and I have voted against them when I believed they have got it wrong, but they have tried consistently to help people get on in life and provide a welfare system that is a safety net for those who need it in times of difficulty.

In this country, education is still the best way out of poverty and the best opportunity people have to change their life chances. I am proud of what the Government have done to ensure that millions more children are being taught in good and outstanding schools. When it comes to the economy, we have record rates of employment, with people out there earning, paying tax and contributing to society.

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[Mel Stride]

I thank the hon. Lady for her intervention, but I bring her back to new clause 9. Whatever the DWP happens to be doing, whether it is right or wrong or whether it works, what we are facing here today and making a decision on is new clause 9. As I am working through new clause 9, I am arguing that it is not a practical way to seek to achieve that which the Opposition, quite genuinely and sincerely, are attempting to achieve.

[Sir Oliver Heald]

I wonder whether my right hon. Friend would like to say a word about the extent of research the Treasury already undertakes and publishes. It is my understanding that more than 2,500 Treasury papers have been published, so it is really a question, is it not, of where we draw the line? If a piece of research is proving very difficult, and would be very resource-intensive and so on, that will obviously make it less likely to be done than if it is a more straightforward piece.

[Mel Stride]

Yes. My right hon. and learned Friend makes a very important point. As I have already pointed out, around major fiscal events we have household distributional analysis, which covers welfare, taxation and public expenditure. It takes a cumulative approach to that information and it is often relied upon by Government to take subsequent decisions. We also have, on substantial individual tax and national insurance contribution measures, tax impact and information notes—the so-called TIINs—which were introduced in 2010 and were not there under the previous Labour Government. We are, therefore, doing a number of things, both in the context of major fiscal events and on a tax-by-tax, national insurance-by-national insurance change basis, which look to provide just the kind of information that informs decisions around equality.

The third part of new clause 9 relates to the taxes to which this analysis would apply. On income tax, as I have said, we are looking at impacts on households. We may raise the personal allowance, as we did in the last Budget. That is now up to £11,500. It could be argued that that disproportionately favours one sex over another, but when we look at the effect on the household, income is typically distributed within families, within households and within the family unit. That is extremely difficult—in fact, I would go as far as to say impossible—to capture.