Financial Services Regulation

Sajid Javid Excerpts

Wednesday 16th June 2010 Commons Chamber

[Mr Osborne]

The hon. Gentleman is right to draw attention to the role of the credit rating agencies. Of course, all sorts of organisations and products received triple A ratings that they should never have received. That triple A wrapper basically made them immune to investigation by the firms that were buying those products. Certainly, we need to improve the regulation in the domestic sense—here in Britain—but that is also the subject of decision at a European level, and the la Rosière proposals on European supervisory agencies will consider in particular the role and regulation of credit rating agencies.

[Sajid Javid (Bromsgrove) (Con)]

Will my right hon. Friend commit to ensuring far greater scrutiny of EU regulation concerning financial matters than the previous Administration ever did, to make sure that it helps, rather than hinders, our banking system?

[Mr Osborne]

My hon. Friend makes a very good point that we must get the European regulation right, and the United Kingdom has a particular role as the location of most of the wholesale financial services in Europe. We therefore bring some insights to the table, which not all other members of the European Union can do. I am clear that we must do that. It will be under discussion at the European Council later this week and, I suspect, in pretty much every ECOFIN meeting for the rest of the year.

Office for Budget Responsibility

Sajid Javid Excerpts

Monday 14th June 2010 Commons Chamber

[Mr Osborne]

Before I answer the hon. Gentleman, I, too, should welcome you to the Chair, Mr Deputy Speaker. [Hon. Members: “Hear, hear!”] My several visits to Chorley during the general election seem only to have helped you to return to this place. It is good to see you here in the Chair.

In answer to the hon. Member for Luton North (Kelvin Hopkins), of course I want the elected British Government and the elected House of Commons to have complete control over the tax and spending decisions that affect our country. One way of doing that is to ensure that we never give rise to market concerns about our ability as a country to live within our means. That is the way to retain national sovereignty. We have seen what happens when other countries lose that sovereignty to the markets.

The hon. Gentleman asked specifically about the European Union, and I shall make two observations about that. First, the Budget this year and in all future years will of course be presented first to the House of Commons before being presented to anyone else. Secondly, I know that he will be interested in this and, before those in my party who are interested in these subjects get hold of this fact, I should let the House know that, under the deal negotiated by the right hon. Member for Kirkcaldy and Cowdenbeath and the other former Prime Minister, Tony Blair, the British contributions to the EU budget are set to rise from £3 billion in 2008 to £10.3 billion in 2014.

[Sajid Javid (Bromsgrove) (Con)]

My constituents, like millions of people up and down the country, are very concerned about the direction of mortgage interest rates. Does my right hon. Friend agree that unprecedented transparency in our national finances of this kind will increase our credibility in the global financial markets and help to keep interest rates lower for longer?

[Mr Osborne]

My hon. Friend is absolutely right, and it is worth reminding ourselves that the OBR June 2010 pre-Budget report is based not only on the previous Government’s tax and spending measures and decisions, but partly on the lower interest rates earned by the current Government in the decisions and announcements we have made over the previous month or so. That is why Sir Alan says in his forward that

“the fiscal path assumed”

by the previous Government

“would lead to higher interest rates and so lower economic activity ”.

Economic Affairs and Work and Pensions

Sajid Javid Excerpts

Tuesday 8th June 2010 Commons Chamber

[Sajid Javid (Bromsgrove) (Con)]

Thank you, Mr Deputy Speaker, for giving me this opportunity to make my maiden speech. I speak with a particular sense of humility after so many hon. Members have given such admirable maiden speeches, including that just made by the hon. Member for Stretford and Urmston (Kate Green).

I have some worthy predecessors. My immediate predecessor was Miss Julie Kirkbride. She was first elected in 1997, and she was a fine constituency MP. I will never forget the spontaneous tributes that people paid to her, when I knocked on their doors during the campaign, for all the work that she had done on their behalf. I should also like to express my gratitude to her two most recent predecessors, Mr Roy Thomason and Sir Hal Miller, who both helped me in my campaign with great advice.

Bromsgrove is a beautiful, traditional beacon of middle England. I know that many hon. Members have described their constituencies as beautiful, but Bromsgrove truly has breathtaking countryside. It is an old market town which was originally a bit of an industrial hub for the west midlands industrial complex. It still has a very active, traditional court-leet, with lovely traditions.

In the east of the constituency we have many beautiful picture-postcard villages, including the glamorously named suburb of Hollywood.

Over the centuries, we have had many heroes from Bromsgrove. I should like to pay tribute on this occasion to two of the most recent—both teenagers, both soldiers in the 2nd Battalion, the Mercian Regiment. The first, Private Robert Laws, was aged 18 when he lost his life fighting for our country in Helmand province last year. He had passed his training only six months previously. The second, Private Alex Kennedy, also aged 18, earlier this year became the youngest soldier since the second world war to receive the military cross. He fought hard to save the life of his commanding officer during a fierce battle with the Taliban. We must never forget the sacrifices that our soldiers—those who have served and those who are currently serving for us—make on our behalf.

A notable person from Bromsgrove was A. E. Housman, whose stirring prose reflected the rural beauty of the heart of England. In Bromsgrove we have a wonderful heritage in the English countryside, and that is why I want to make sure that it is the people who are most affected by planning decisions who make those decisions. That is why I welcome the recent announcements of my right hon. Friend the Secretary of State for Communities and Local Government on that issue. They have been most welcomed by my constituents.

Perhaps at this point I should say something about my own background, as hon. Members may be able to tell from my appearance and my name that I can hardly be of traditional Worcestershire stock. My parents were both born in British India. Although my father was just six years old in 1947, he remembers full well the tragedy that occurred upon the partition of India—12 million people were displaced and almost a million lost their lives. If we need an example of how political failure can lead to great human tragedy, surely that is one of the most heart-wrenching, and an example of how politics can really make a difference. That is what I say to people who ask me why I gave up a lucrative career in finance to enter this House.

To the dismay of the right hon. Member for Holborn and St Pancras (Frank Dobson), I have to tell him that for 19 years I have been an investment banker. In my case, this is one brain that was sucked up by the City and has now come to serve the people in this Parliament. I worked in London, Singapore and New York. I readily admit that being seen as an investment banker was not the most useful thing on the campaign trail, but it helped prepare me for a profession not well liked by the general public. Let us hope that all of us, on both sides of the House, can work together over the coming years to help restore the nation’s respect for our great Parliament.

In view of my background in finance, I am particularly pleased to give my maiden speech during this debate on economic affairs. There are many global economic uncertainties at the moment, and they have potentially grave consequences for our economy. First, the euro is only just beginning to have problems. It was always a political contrivance that had virtually nothing to do with economics. Secondly, the world’s largest emerging market economies, which have buttressed global demand since the onset of the credit crisis, are about to go through a period of monetary tightening, and we can no longer rely on them for global growth.

Thirdly, industrialised nations, including our own, that have issued vast amounts of sovereign debt over the past three years in particular can no longer go on that way. We have to make sure that when we look at these issues, we never forget the traditional disciplines that have stood Britain in good stead—sound public finances, low and simple taxation, and light and flexible regulation. It is when we forget these disciplines that we put our future prosperity at risk.

Thank you, Mr Deputy Speaker, for giving me this opportunity, and thank you to the people of Bromsgrove for allowing me to serve them in this Chamber.