Christmas Adjournment

Siobhain McDonagh Excerpts

Tuesday 20th December 2016 Commons Chamber

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

Thank you, Mr Deputy Speaker. By now, hon. Members may have seen my break into the music industry with “National Living Rage”, a Christmas song that I recorded with a number of Labour Members last week. Derided by some, adored by others—my mum—I am delighted that the song has had its desired effect of generating national attention for the serious issue of pay cuts. It has had 40,000 hits on YouTube and been laughed at on everything from “Daily Politics” to Channel 4’s “The Last Leg”, but it has got a serious message out in the public domain by humorous means.

These cuts are being made by some good employers who have made a bad decision when it comes to older, long-standing staff. I want to take a moment to consider the tens of thousands of workers who face a pay cut this Christmas—those families who have to bear the pressure of selling their house or finding another job just to make ends meet. Christmas should be a time of good will to all men and women, but a disappointing roll call of employers are being scrooges this year. Instead of delivering presents, they are serving their loyal, long-standing staff with pay cuts and notices. From B&Q to Marks & Spencer, 2 Sisters Food Group, Waitrose, Caffè Nero and EAT, good employers are getting it wrong, using the introduction of a higher statutory minimum wage as an opportunity to cut total staff pay.

No one in this House should be under any illusion that this is some sort of niche issue—on the contrary, it is affecting residents in every constituency across the country. It is estimated that about 11,000 of the iconic high street retailer Marks & Spencer’s total workforce of 83,000 would be negatively impacted in some way by pay cuts—that is 13% of the workforce adversely affected, almost all of whom are on pre-2002 contracts. Some 2,700 workers will lose more than £1,000 a year, and 700 will lose more than £2,000 a year. Approximately more than half a million people in the retail, restaurant and food manufacturing industries will receive a pay cut—that is about 13% of the total number of workers in those industries. Many of the companies involved are high street names with historically good reputations, but they have made some terrible errors of judgment. It is not too late for them to change their minds, and I am asking all of them to reverse their decisions to cut staff pay at their January board meetings. Should those companies not change their minds, I hope the Government will step in and salvage their policy for all workers.

I have seen evidence that proves that many other companies are planning the same sort of pay cuts in the coming year. The chair of John Lewis, Sir Charlie Mayfield, stated in a private meeting earlier this year his intention to review the partnership’s “historic premium pay arrangements”, which he said were not in keeping with John Lewis’s competitors. We know what the John Lewis Partnership’s competitors are doing, so clearly the “review” of “legacy payments” is just a euphemism for the cutting of pay for long-standing staff. We have already seen clear evidence of that in Waitrose’s decision earlier this year to take away paid breaks from new and existing staff. The House will appreciate my frustration when Sir Charlie emailed me to say that he no longer had any intention of meeting me today. Buster, the boxer from John Lewis’s heart-warming Christmas ad, and I are very sad not to have the opportunity to discuss John Lewis’s plans for pay cuts. Can we assume that the decision not to meet me is an admission of guilt on its part? I guess that Buster and I will not know for sure until those pay cuts are announced in the coming year.

If I am wrong about John Lewis, I will happily return to this House and publicly apologise. I will be delighted to be wrong about John Lewis—it is a great British business that got great through great customer service from well-treated staff, the sort of people whom the Prime Minister describes as those giving their best and putting in the effort. I am happy to apologise if I am wrong and I reiterate to Sir Charlie that I would be happy to meet him and discuss this important issue wherever and whenever he likes.

Having concentrated on unscrupulous employment practices, I know that corporate executives are watching every move in Parliament so, through you, Mr Deputy Speaker, I want to deliver a message to all those company CEOs and chairmen of boards. The campaign to ensure that no one in this country loses money as a result of the national living wage will continue into the new year, until every worker gets the pay that they so richly deserve. My colleagues and I will be writing to chairmen this week to ask for their contract changes to be reversed at the January board meetings.

I want to use these last few minutes to express my deep concern for the Ahmadiyya Muslim community in Pakistan and in this country.

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

As vice-chair of the all-party group on the Ahmadiyya Muslim community, I want to say that we all stand in solidarity with them wherever they are in the world. Does the hon. Lady agree that we should always speak out against religious persecution, wherever it occurs and whoever it falls on?

[Siobhain McDonagh]

I agree with the hon. Lady: whatever the religion and wherever people are, we must stand up for religious tolerance.

There have been two worrying developments overseas. The first was a raid in Rabwah, where 16 fully armed policemen and 12 plain-clothed officers from three police vehicles forced entry into an Ahmadi office without a warrant, wounding and arresting four innocent Ahmadi men. The raid was unlawful and most likely ordered by the highest ranking officials in the Punjab province.

The second was the destruction of the historic Chakwal mosque, which was attacked by more than 1,000 people a week ago. Stones were pelted and the property was burnt to

“bring it under the influence of Islam.”

I need not remind hon. Members that Ahmadis are not allowed to define themselves as Muslim in Pakistan. I hope that all hon. Members will stand together to express their solidarity with the Ahmadi Muslim community and I ask the Foreign Secretary to do all he can to stand with the oppressed and persecuted Ahmadi people.

Finally, I wish all my constituents in Mitcham and Morden, all hon. Members and you, Mr Deputy Speaker, a very merry Christmas and a peaceful new year.

Summer Adjournment

Siobhain McDonagh Excerpts

Thursday 21st July 2016 Commons Chamber

[Bob Blackman (Harrow East) (Con)]

I beg to move,

That this House has considered matters to be raised before the forthcoming adjournment.

The hon. Member for Gateshead (Ian Mearns) sends his apologies; the time taken by the urgent question meant that he could not stay but had to leave to attend to constituency business.

I wish to concentrate my remarks on some local issues and matters concerning this House that might benefit from a mention. I am pleased to report that during the recent London mayoral election in Harrow East, we managed to secure an overwhelming majority for our mayoral candidate, our constituency candidate and the party vote. Regrettably, the rest of London did not follow the same line. I am also pleased to say that we secured a strong majority vote in my constituency to leave the EU, which was of course echoed across the country.

On transport, the dreadful performance of Southern Rail was mentioned in business questions this morning. This affects my constituents as well. The service from Harrow and Wealdstone station to Gatwick airport and Brighton has already been cut, and now Southern proposes to cut the service to Croydon. I wrote to the outgoing Rail Minister about this, and I trust that there will be strong action from the new Secretary of State and the Rail Minister to combat this disgraceful service.

Flooding is a particular issue in my constituency. Many Members from rural constituencies might not realise this, but constituencies like mine have seen deep pools of water and sewage emerging as a result of recent flash floods and heavy rainfall. I have had consequential correspondence and held a series of meetings with the council, Thames Water and the Environment Agency, and it is a great source of frustration that none of them is taking any action to remedy the problem. As a result, many homes have been flooded unnecessarily, which has caused immense problems with insurance.

I had hoped to report today a satisfactory outcome to the ongoing saga of the redevelopment of the Royal National Orthopaedic hospital. This has been going on since before I was elected: my predecessor and his predecessor attempted to get the hospital rebuilt. The only thing that seems to have changed is that the NHS Trust Development Authority has changed its name to NHS Improvement. Still the bureaucracy continues and still the £20 million funding that is required is being “considered carefully” by the bureaucrats. I trust that the Health Secretary and his team will reduce these levels of bureaucracy and that we can get a reasonable and quick decision on a proper, business-like service. This is a service on which we all rely.

I am receiving complaints about the planning service in Harrow. The local authority is struggling to deal with enforcement notices and the grey areas around permitted development and retrospective planning approval. I warned about this when the Government changed the rules and regulations on planning. It is now causing immense problems, not only in my constituency but throughout London.

I have also received numerous complaints about the rejection of legitimate visa applications submitted for weddings, religious ceremonies, education and other visits to this country. My office is referring every case either to UK Visas and Immigration or the Immigration Minister. We are seeing mass rejections of visas for families travelling to my constituency for legitimate reasons. This needs to be rectified.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

The hon. Gentleman makes a good point. At their advice surgeries, many MPs see people complaining about legitimate entry clearance applications being refused. At the same time, is the hon. Gentleman aware that the high commission in Islamabad recently granted entry clearance to two hate preachers, including one Muhammad Qureshi? Why does he think that permission is being granted to people who are seriously dangerous to our country yet not to those who are not?

[Bob Blackman]

It is quite clear that the problems in the visa system need to be resolved. People who want to cause harm and damage to good community relations in this country should be barred from entering. The new Immigration Minister has a task to review this process. I have proposed that visitors from India have the option of a two-year visitor visa, just as visitors from China do. It might be possible to consider other countries as well, but if we have friendly relations with countries, we should allow people from there to come and visit on a reasonable basis. We should also bar those we do not want here, and that includes barring from our mosques messages from hate preachers who preach over the internet or via satellite television. That causes religious and other concerns.

I wish to take up the vexed issue of the garden tax in Harrow. The council decided in 2015 to charge for the collection of garden waste. Having contacted every London borough, we have established that Harrow is charging more than any other borough in London, and probably the country, for garden waste collection. Residents were rightly outraged by this imposition, but the policy has been approved and 10,000 addresses in my constituency have now been registered for this tax. We have had 168 complaints of poor service and 3,080 missed collections out of 128,000 since the service was introduced. The service is poor yet the most expensive in the country. It is outrageous.

I was pleased recently to visit Bentley Priory museum, where we were buzzed by a Spitfire as part of the celebrations of our winning the Battle of Britain. I also received an interesting request. After successfully securing from the Chancellor a £1 million grant towards an education centre for the museum, I received an email asking for an invoice for £1 million and details of the person to whom the cheque should be payable. I had to check that it was not coming from Nigeria or some other country, rather than a civil servant. I am pleased to say that I was able to pass it on to the relevant people and to make sure they got the money they deserved.

I am pleased to say that the first state-sponsored Hindu Secondary School in this country has now received planning permission. It will be built in my constituency and will open as soon as possible. I look forward to the new Secretary of State for Education coming to open it in due course.

After the break, I will be introducing a private Member’s Bill on homelessness reduction. It is supported by national charities such as Crisis, Shelter and St Mungo’s and by the National Landlords Association and other local charities in my constituency, such as the FirmFoundation night shelter charity and Harrow Churches housing association. Although we cannot eliminate homelessness, we can try to reduce it as much possible. The Communities and Local Government Select Committee will be publishing a report on measures to combat homelessness across the country. My Bill will go through pre-legislative scrutiny by the CLG Select Committee, which I understand will be a first for any private Member’s Bill. This may be an ordeal for me and others.

I would like to tell Members wishing to support my Bill that Second Reading is on 28 October. I look forward to gaining cross-party support for the Bill, and I have already secured co-sponsors from Conservative, Labour, SNP and DUP Members, but unfortunately I could not find a Liberal Member to help. No doubt the Liberals will also support it, however.

I raised the issue of caste legislation at Women and Equalities questions this morning. The all-party parliamentary group for British Hindus is actively lobbying to repeal clause 9 of the caste legislation as it approaches the end of its sunset clause. The consultation time with communities has been fully exhausted over the last two years, and now is the time to take a decision. British Hindus deeply resent this unnecessary, ill thought out, ill-considered legislation, which was foisted on us by the other place. I look forward to its being repealed as soon as possible.

I had the privilege of celebrating the second international day of yoga this year. We had a very well attended meeting here with researchers, practitioners, parliamentarians and representatives from the NHS. The key point is that the NHS is considering putting yoga into the wellbeing aspects of the health service. I would recommend it for all Members. I start my day with a short period of yoga exercises and stretches and meditation, and it has served me extremely well. I thus strongly recommend it for all colleagues—[Interruption.] No, I will not demonstrate it here and now! I have held two meetings with the Minister of AYUSH— Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homeopathy—in India. The aim was to get Indian Ministers to inform the Government here and all who would like to listen that this can be utilised to assist people’s wellbeing, as well as ensuring that people can relax and live a proper, decent and long life.

This morning I also raised the plight of religious minorities in Bangladesh. I would like to highlight early-day motion 351 for Members to sign if they so wish, with the aim of ensuring that we get some action. At the moment, we spend £157 million on overseas development aid to Bangladesh, and I am proud of the fact that this country spends 0.7% of its gross domestic product on overseas development. It seems to me that at a time when religious minorities are being victimised and persecuted in Bangladesh, we should spend more of that money on improving security over there for all people of all religions rather than on some of the areas where the money has actually been spent.

I have also raised the plight of Hindus in Jammu and Kashmir. This is an integral part of India, and it shall remain so. The area illegally occupied by Pakistan must be repatriated to India. I have spoken on a regular basis against the continued attacks on Hindu minorities in Kashmir. As a result of the assassination of the terrorist Burhan Wani, the situation in the valley has erupted, with Pandits and Government establishments attacked by Kashmiri Muslims and other terrorists.

I visited Jammu and Kashmir to gain a first-hand understanding of the situation. I met many members of civil society, politicians, lawyers, traders and residents to understand the situation in both Jammu and Kashmir. I met senior cabinet Ministers in Delhi, and it is quite clear that there are huge opportunities for tourism and infrastructure improvements and for the whole of society to come together, provided that the terrorism ceases.

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[Siobhain McDonagh (Mitcham and Morden) (Lab)]

The vote to leave the EU a few weeks ago is a great indication that there are millions of people in our country who feel that they are being left behind, not sharing in the growing prosperity of others. And they are right.

Unemployment may be down according to certain definitions, but poverty certainly is not. For one of the first times in UK history, low wages mean most of Britain’s poor families are in working households. The Institute for Fiscal Studies has found that two thirds of children living in absolute poverty have at least one parent in work.

Even the introduction of the new national living wage, intended in the words of the former Chancellor, the right hon. Member for Tatton (Mr Osborne), to give Britain “a pay rise”, has fallen short. It has become a vehicle for reducing the take-home pay of thousands of long-standing, loyal employees in the retail, hospitality and care sectors.

Back in February of this year, I was approached by an employee of B&Q who had been given proposed new terms and conditions and thought he might be worse off as a result. In these new contract terms, the employee’s basic per-hour pay was going to be increased, but his overall pay would be reduced by £2,600 per year. This is because B&Q planned to cut Sunday and bank holiday pay, as well as other discretionary bonuses—in short, everything that made B&Q an attractive employer and allowed it to retain its staff.

I was delighted that my right hon. Friend the Member for Enfield North (Joan Ryan) was able to speak in my place during the debate on the national living wage in this House back in April, where dozens of Members voiced their concerns regarding B&Q’s plans. I was pleased that after the press attention in the debate, a great deal of lobbying, and a meeting between me and the B&Q CEO, the company extended its period of compensation for employees for two years, promising that no one would lose out for the next 24 months. But B&Q is just one of many.

Over the course of my campaign, I have been approached by employees from around the country, and from all sorts of different companies doing exactly the same thing. There were the factory employees working for subsidiaries of Samworth Brothers in Lincolnshire who are facing cuts to their overnight pay. I was delighted that my hon. Friend the Member for Leicester West (Liz Kendall) met with Samworth workers to hear their concerns. There were young baristas at Caffè Nero and EAT whose free lunches had been scrapped. Most recently, there are 7,000 staff at Marks & Spencer who will be losing out by thousands of pounds each year because the company is cutting overall pay to fund an increase in basic pay.

I have had well over 100 M&S employees from around the country coming forward to me with M&S’s new proposals, with staff terrified for their futures. M&S is cutting Sunday and bank holiday pay, redefining unsocial hours and scrapping its pension scheme, leaving staff with over 20 years of experience at M&S significantly worse off.

Let us consider Elizabeth, whose story was reported yesterday in the Evening Standard. Her name has been changed to protect her identity. Elizabeth used to have great wages and perks at M&S, which she was proud to work for, but now she says:

“Everything is being taken away from us. I wanted to see my kids through university but now I’m not sure I’ll be able to. It really frightens me.”

In a meeting with its head of retail, M&S confirmed that 2,700 M&S employees will lose over £1,000 per year, and 700 will lose over £2,000 a year. Some of the employees who have got in touch with me are going to lose—this is hard to believe—up to £6,000. To be clear, that is after their basic pay is increased.

M&S maintains that this is just a proposal. It cites its “compensation package”, which compensates staff members for 30% of their projected losses not including how much they will lose in terms of pension cuts. From the paperwork I have seen and the experience at B&Q, I think M&S’s plans are a foregone conclusion. To be clear, it is not as if head office staff are getting the sort of pay cut they are dishing out to long-standing shop- floor staff.

There were a number of options M&S could have pursued. Other companies have invested in skills to improve the productivity of their employees. Ultimately, M&S has decided to offset a basic pay increase for some staff by cutting the pay for others.

There are many more examples of UK industrial policies letting down hard-working loyal employees. Just consider the recent discovery of Hermes, the delivery company, using self-employed workers and paying them less than the legal minimum wage, and HMRC’s investigation into Sports Direct’s working practices. Both companies are undermining the integrity of Government policy. These are huge institutions we are talking about, not small local businesses; their profits are in the millions of pounds, and they employ thousands of people.

I was delighted that the Chancellor committed to look very carefully into the case of M&S earlier this week, but I want to tell the Minister today that it is not good enough to introduce a policy like the national living wage without policing it. If Britain has been promised a pay rise by this Government, then Britain deserves to get a pay rise.

Will the Minister write to the M&S chief executive, Steve Rowe, to express the Government’s concerns, calling on M&S to reverse its plans? I absolutely endorse the Prime Minister’s commitment to building a UK economy that works for all, and her Government must start by addressing the causes of low wages. People who work hard and play by the rules need a defender in national politics. Both the Government and those on these Opposition Benches have a responsibility to be that champion.

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[Chloe Smith (Norwich North) (Con)]

It is always a pleasure to follow the hon. Member for Nottingham North (Mr Allen) and to hear in this case—forgive the pun—how he has been getting his teeth into his local constituency issues for the good of us all.

Today, I would like to speak for my constituents of Norwich North on the subject of exiting the European Union. Brits have just taken part in a giant democratic exercise about that relationship, and I thank people for that, however they voted, and whatever lies ahead. The result was clear, and hard work now has to follow to put the country’s wishes into practice. We all want what is best for Britain, so we should all work together in a calm and thoughtful way.

Our membership of the European Union is a fundamental constitutional question, and one that could not have been ducked forever. I am a democrat first and foremost, and it was right to use a referendum as the means to settle that kind of question. The result does raise arguments about what it means for the future of our parliamentary democracy. If we can hold a referendum on this, then why not on everything else? Do we even need a Parliament? There is a very clear distinction to be made, though, as there are fundamental constitutional questions. In such cases, it is right to put those decisions directly to the people. The detail and practical implementation of the decision is then the job of the Executive, scrutinised by Members of Parliament. The majority wish in this referendum is a clear instruction to Parliament.

Like many MPs, I have had hundreds of people getting in touch since the referendum, reflecting on the result. Most of my constituency mail comes from those who voted remain and who are understandably worried about the future. Norwich voted by a majority to remain, but that refers only to the Norwich City Council area. My own constituency is not the same as that area. It is never a simple maths job to speak in this place for all constituents on this or on any other issue. Before the poll, most constituents who got in touch wanted to persuade me to vote out. After the poll, I am hearing most from people who want to persuade me to vote against going out. It is funny how that happens, but it reminds us that there is a silent majority that never gets in touch with its Member of Parliament. Counting all those people who have been in touch on either side of that debate still numbers only a few hundred of the 67,000 I represent.

I welcome any tool, such as a referendum, that encourages so many more voices to be heard. However, it is clear to me that the point of a referendum is that the whole electorate counts together—in this case, the whole of the UK. As an MP, first, it is my job to support the best for Britain after this clear instruction, and secondly, it continues to be my job to work for everyone I represent in Norwich North, whichever way they voted on this issue or any other.

Some of my constituents are reflecting on how the poll was run, concerned that just a simple majority was used to define the result on a complex question. There is clear precedent here. Referendums are decided on simple majorities. Consistency is important and allows a legitimate process. In a healthy democratic society both sides accept the result, recognise the concerns that the other side might have, and then come together in unity. I recognise this in my constituents. While some are celebrating, others who have been in touch are unhappy. What we cannot do is deny the result or denigrate fellow citizens.

Norwich is a proud and old city, but with a youthful population. Some constituents share my own deep concern in particular about the generational rift exposed by the referendum. What happened, in age terms, at this referendum is quite clear. A large majority of younger voters opted in, and a large majority of older voters opted out. Bluntly, the younger generation was outvoted, and many are now contemplating the result with some concern for their future. But, again, democracy is democracy. We live by it and we accept the result.

I am always concerned by turnout rates, in which younger people generally vote less than their elders in Britain. Never mind whether this is a new or an old battle, a new or an old issue, what we are seeing is that younger voters are not coming out in sufficient numbers to fight any battle. Democracy works thanks to those who take part, so if people care about something, they simply have to be there. There are not many excuses in a major democratic event, and considering that many people around the globe still literally die for one person, one vote, we should appreciate the robust lesson that politics actually means something.

I therefore call on the next great reforming Conservative Prime Minister to heal this division. The health of democracy depends on all being represented, and it must balance the needs of different generations. It is the duty and the opportunity of the new Government to reach out to young voters now and offer them a future.

[Siobhain McDonagh]

On that point, and given the hon. Lady’s position on the all-party parliamentary group on voter participation, will she look seriously at automatic registration so that we get young people to the point where they can use their vote?

[Chloe Smith]

The hon. Lady knows that I look seriously at all these issues. Indeed, I have chaired that APPG and helped to produce a report that goes into that option and a number of others for ensuring that as many people as possible are registered to vote. I know that that is an issue that the hon. Lady has worked on in some detail.

Let me press on to the situation of EU nationals in my constituency—that is, several thousand constituents, friends, colleagues and family members. I welcome the Government’s early reassurance that there has been no change to the rights and status of those people, and confirmation that when we do leave the EU, the Government fully expect their legal status to be protected, alongside our goals for our citizens living in the other European countries.

I very much welcome the contribution made by immigrants in Norwich and across the UK to our economy, history and society. Norwich is a friendly and welcoming city. I was concerned, like many in our city, by an arson attack on the shop and home of a Romanian. It is still too early to rush to any conclusions about the motives for the attack, but whether it was racist or just plain criminal, it is hateful behaviour and it has no place here. The response of the community has been impressive. Norwich does not welcome racism or any form of aggression. Let us be clear that those who have made Great Britain their home are respected and valued.

Looking ahead, the referendum result provides a clear instruction to the Government that the majority wish is for a change in the way that Britain handles immigration from Europe. However, leaving the EU must not mean leaving behind a strong economy or a strong cultural exchange. In the east of England, almost one in every 10 jobs is linked to trade with the EU. We want to build on that, not to lose it. The case for remain, perhaps, was to maintain the rules for half of our global trade, and we need the best deal possible for that half. The case for making a success of leaving involves looking now to the other half, and I welcome the early appointment of the relevant set of new Ministers who are focused on that.

Norwich, in particular, needs a good deal on financial services. The financial services sector makes the largest single contribution to the economy of Norfolk and Suffolk. Norwich is the largest general insurance centre in the UK, with a heritage going back more than 200 years, and it is going strong today, employing thousands of people. Firms will now be looking for a technical environment of regulation that allows them to thrive in the UK and to thrive outside London, too.

In Norwich, we expect to be able to do the same in our exciting digital and technology sectors so that we can attract investment and talent. We also enjoy an ambitious science sector, a thriving cultural scene and a strong tourism industry. All of this requires an outward-looking attitude. Britain must remain a successful economy—jobs and livelihoods in my constituency depend on it.

Oral Answers to Questions

Siobhain McDonagh Excerpts

Tuesday 19th July 2016 Commons Chamber

[Mr Hammond]

I am afraid that I shall not be tempted by my hon. Friend to speculate on the content, or even the date, of the autumn statement. What I can say is that the Bank of England is well equipped with the tools necessary to deal with the short-term needs of the economy following the shock of the referendum, and the autumn statement is well placed, after the batch of economic data that will be published this autumn, to provide a longer-term response.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

I welcome the right hon. Gentleman to his new position. He may recall that his predecessor cut corporation tax for business to allow the living wage to be introduced. As we speak, Marks and Spencer is consulting on cutting overtime payments and Sunday and bank holiday pay, in order to do just that. What will the Chancellor do to ensure that my constituent, Mrs M, does not lose £2,000 a year because of the introduction of the living wage?

[Mr Hammond]

Very clearly, the intention of the introduction of the living wage was not to make people worse off; it was precisely to support the living standards of those on the lowest wages. I will look carefully at the case that the hon. Lady has drawn to my attention.

Automatic Registration: UK Elections

Siobhain McDonagh Excerpts

Wednesday 29th June 2016 Westminster Hall

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

I congratulate the hon. Member for Midlothian (Owen Thompson) on securing this important debate. I apologise to you, Mr Howarth, and to other Members in the Chamber for having to leave early to get to a constituency event, but I wanted to make a contribution to this debate.

It is our job in this House to ensure that the citizens we represent can truly exercise their democratic rights, but British citizens in this country are being marginalised and excluded from the democratic process. The problem of electoral registration is less getting people to sign up to individual elections and more maintaining their registration. I have spoken in the House before about the 100,000 Londoners who disappeared off the electoral register just months before the mayoral election. Boroughs with the biggest falls included Redbridge, which witnessed a staggering 9% drop; Kensington and Chelsea, with an 8% drop; and Hackney, which recorded a 7% drop.

The national picture is just as stark. The parliamentary register that was used in the EU referendum has seen the loss of 1.4 million names since December 2013. To put that figure into context, just 1.3 million more voters voted for Brexit than remain. In other words, those who fell off the register in the past two and a half years could have swayed the decision on the EU referendum.

There is a stark variance in who is signed up on our register. Pensioners in the shires who own their own home have a 90% chance of being on the electoral register, but a young man from an ethnic minority background in private rented accommodation in a city has a less than 10% chance of being on the register. The fact that people from ethnic minorities are far less likely to be registered to exercise their democratic rights undermines the Government’s commitment.

When it comes to electoral registration, the picture is bleak across the country. Liverpool has seen a drop in its electoral register of 14,000. Birmingham has seen a drop of 17,000, and the drop in the London Borough of Lewisham was 6,000. Those are all areas that have had an increase in population. The situation is even worse in areas where the population is transient, such as university towns. Canterbury has seen a huge 13% drop in those registered to vote. Cambridge has seen a drop of 11%, meaning its electorate is now smaller than it was in 2011.

Let us look at the outcome of the EU referendum. We know that young people overwhelmingly voted to remain. Remain voters made up 73% of 18 to 24-year-old voters and 62% of 25 to 34-year-old voters. It is clear that in areas with a high proportion of younger residents, turnout tended to be lower. We do not have any cast-iron figures, but we know that turnout among the youngest voters was around 40%. Among the over-65s, turnout was well over 80%. That all amounts to the effective disfranchisement of that younger group of voters. If the Government are serious about combating social exclusion, they urgently need to review that dire situation.

Being on the electoral register is the closest thing to having a civic contract. If someone is not on it, they cannot participate in the democratic process. Automatic electoral registration provides the opportunity to both reduce costs and improve administration, cutting down on bureaucracy and enabling everyone to exercise their right to enfranchisement. It is simple common sense, proposing a cheaper, simpler and more effective model. It places a responsibility on the state to do everything in its power to ensure that the electoral database is full and complete. It imposes a duty on the Government and public bodies to work together.

Automatic electoral registration proposes to make the system truly convenient for the citizen by integrating both national and local data sets, meaning that an individual’s address details would be automatically updated according to trusted data sets. The trusted data sets would collate information at each point that a citizen interacts with the state, whether that is when they pay a tax, receive a benefit, use the NHS, claim a pension or apply for a driving licence. The walls between those data sets used to be sacrosanct, but they are falling away more and more as the Government emphasise security and anti-fraud measures.

These reforms would vastly improve registration and have been tested elsewhere. A very similar model operates in Australia with huge success. For instance, the state of Victoria has a population of 3.5 million and has 95% accuracy in its registration process. It does that at extremely low cost, employing just five members of staff who maintain the rolling register.

Rolling out this reform in the UK is timely for so many reasons. Greater Manchester has already submitted to the Cabinet Office its plans to pioneer the system of automatic electoral registration. It also has proposals for a pilot scheme. I sincerely hope that the Government support the plans and will introduce the primary legislation on data sharing necessary to ensure that the pilot can go ahead.

Voter registration should not be the responsibility of charities or NGOs, such as Bite the Ballot, despite their excellent work. It should be down to the state to do all it can and to ensure that everyone, especially the most marginalised, can access their democratic rights. The issue should be non-partisan. It is in all our interests to get more people signed up. Then we can all get on with our job, as representatives of political parties, to enthuse voters and to persuade them that we are worthy of their vote.

Budget Resolutions and Economic Situation

Siobhain McDonagh Excerpts

Wednesday 16th March 2016 Commons Chamber

[David Rutley]

I completely agree. The hon. Gentleman and I have been involved in numerous debates about promoting outdoor recreation and physical activity—for older people as well as young people—and the levy is a positive step further forward. I pay tribute to the Government for taking forward its sport strategy and to the Under-Secretary of State for Health, my hon. Friend the Member for Battersea (Jane Ellison), for her work in taking forward a very proactive public health agenda.

On other areas of the Budget, I felt that the Chancellor set out a clear, strong package of measures to help go on delivering the long-term economic plan and to make Britain the best place in the world to start up and grow a business. I have long talked about the importance of an enterprise economy. To achieve one, we need to focus on some key groups of people who make that happen: the entrepreneurs, the exporters, the employers and, of course, the employees who help put the pieces of that jigsaw together to create the enterprising economy that we want to see in Macclesfield, Cheshire and right across the country.

In recent years, I have also been campaigning hard on behalf of the self-employed. It is fascinating to see how self-employment is moving forward. I have been working with Demos and the RSA on various policy initiatives in this area, and it is clear that there is a long-term trend towards more self-employment—4.6 million, up from about 4 million in 2010. It is clear from the RSA’s own work that the pull factor is bringing more people into self-employment; there is not just a push factor. On the back of that, it is important that we welcome the Chancellor’s announcement on abolishing class 2 national insurance completely, to simplify the tax system for the self-employed.

The Chancellor also talked a lot about productivity, which the Government are absolutely committed to improving. For decades, the UK’s productivity has lagged behind that of other major economies. We need to address that. As a result of the drag from the financial crisis, the OBR has forecast lower productivity in the UK, as the OECD has done in the vast the majority of countries. That is why the Chancellor is absolutely right to keep an unrelenting focus on productivity and to take the strong action we need to take to bolster our economy now and for the next generation.

Colleagues should turn to page 61 in the Red Book to see the vast array of activity being taken forward to encourage more investment: lower taxes to boost enterprise, investment in infrastructure, as called for by Opposition Members, and a strong focus on science and innovation, which I believe is vital for the country and certainly for Cheshire.

I join the long list of colleagues on the Government side—and, I hope, Opposition Members, too—who welcome the fact that the Chancellor has set out that business rates will be reduced, which will have a huge impact on many small businesses. Capital gains tax has been cut; corporation tax has been further reduced to 17%. Stamp duty is to be reformed, not just in the residential sector, but in the commercial sector. These are vital steps in ensuring that we improve opportunities for investment. When we drive productivity further forward, it means more jobs and more skilled employment, which, when combined with the national living wage, will lead to higher wages, too.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

Is the hon. Gentleman aware that, as a result of the introduction of the living wage, most high street chains and supermarkets will cut their long-term staff salaries?

--- Later in debate ---

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

In last year’s summer Budget, the Chancellor said that he was committed to a higher wage economy:

“It cannot be right that we go on asking taxpayers to subsidise…the businesses who pay the lowest wages.”

When he introduced the national living wage, he said that

“Britain deserves a pay rise and Britain is getting a pay rise.”—[Official Report, 8 July 2015; Vol. 598, c. 337.]

He promised that the change would have only a fractional effect on jobs. He said the cost to business would be just 1% of corporate profits, a cost which he offset with a cut to corporation tax.

Today, the Chancellor said that he wants to help low-paid workers to save with a savings bonus, but how exactly does the Chancellor think low-paid workers can afford to save anything when thousands nationwide will be taking home less money after the national living wage is introduced next month? National employers are using the introduction of a higher minimum wage to reform their reward structures, which is a euphemism for cutting staff pay. The new £7.20 hourly rate should be boosting people’s pay packets but, as the Chancellor knows, the opposite is happening in practice. B&Q has cut staff pay by changing all staff members’ contracts, forcing them either to accept the unfavourable new terms and conditions by the end of this month or lose their jobs. The new B&Q contracts are designed to offset the cost of the new national living wage and save the specialist retailer money without touching shareholder pay. The contracts strip low-paid staff of extra pay for Sunday and bank holiday working; eliminate summer and winter bonuses; and cut London weighting right down.

These workers are non-unionised, represented only by B&Q’s “national people’s forum”, which sounds like something that might have existed in the USSR. The so-called “people’s forum” had a very brief “consultation” on the proposed changes—there was no real negotiation whatsoever. Subsequently, these workers have no one to speak up for them—I say to this House that it is our job to speak up for them. Worse still, they have been told by B&Q management that they will be sacked if they come forward with their story to the press. B&Q staff will be worse off after the national living wage is introduced, as the specialist retailer saves money. The impact on low-paid workers, particularly loyal, long-standing staff who have worked at B&Q for decades, is devastating. Many cases have been reported to me and I have to be careful not to identify the people involved, because they could be sacked. However, let me give the example of just one of them.

Mr Jones, as we shall call him, works at a B&Q store in the south-east, where he has been employed for more than 15 years. He has a family—two children—and is the sole wage earner in his household. He works hard, but works part-time because he is disabled. He works every Sunday he can, as well as all the unsociable hours on offer. But from April, under the new contract he has been coerced into signing, he is going to earn £1,000 less—and he is not alone. If I had the time, I would tell the House about workers—

[The Minister for Small Business, Industry and Enterprise (Anna Soubry)]

Will the hon. Lady agree to meet me, in confidence, in relation to all these people? As the Minister responsible for retail, I undertake to take this up directly with B&Q. May I ask that she also speaks to the right hon. Member for Doncaster Central (Ms Winterton) about this, because I think that between us we could do something about it?

[Siobhain McDonagh]

I would be delighted to accept that offer, and I will show my right hon. Friend all the emails I have received about people in desperate situations. These people are the ones who political parties say they are there for: the hard workers—the people who believe it is their job to support their families and who just get on with it. But they are not able to get on with the living wage because their pay is going to be cut.

I was going to come here and say today, “Look it doesn’t have to be this way. Some of these companies just need to pass on a hit to their shareholders. Some of them need to improve productivity and staff training.” But I did not know then that what the Chancellor was going to announce was a further cut in corporation tax. He has given these companies the opportunity to get out of these appalling contracts and give people £7.20 an hour, on top of the benefits they already get. I ask the Chancellor and his Government to make it unquestionably clear that they expect, and we expect, that the honour of the national living wage will be a reality. We are not talking about small companies living on the margins; these are some of the most famous names on our high street. They are currently getting away with murder, and they can because these people have nobody to speak for them.

I may just be a lowly Opposition Back Bencher, but if I can help any of those staff get a decent result on what should rightfully be theirs—this is not because they do not try; it is because of their direct effort—I will be doing my job. I ask everybody in the House to join me in standing up to these companies and saying, “Put the money you’ve got in today’s Budget in the hands of those people who have worked longest and hardest for you.”

Oral Answers to Questions

Siobhain McDonagh Excerpts

Tuesday 1st December 2015 Commons Chamber

[Mr Osborne]

There is general agreement across the House that there should be a level playing field, so that people trying to buy their first home are not disadvantaged by people trying to buy a second home or a buy-to-let property. The changes that we have introduced help to do that. Alongside that, we have made the ISA more generous and have created new pension flexibility, so that people can get the most out of their pension savings. The low interest rates, decided independently by our central bank, are part of the vital support for our economy going forward.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

20. I acknowledge the work that the Chancellor has done on tackling the bias towards buy-to-let in the housing market, but would he consider extending that by cutting further the tax relief on buy-to-let properties? We simply have to widen the space for first-time buyers so that they can get into the market, particularly in London.

[Mr Osborne]

I welcome the support that the hon. Lady gives; of course, the problems of getting on to the housing ladder are particularly acute for first-time buyers in London. In the summer Budget, we announced changes to mortgage tax relief for the buy-to-let market so that those on higher rates of tax, with larger incomes, will see that relief scaled back over the coming years. What we have set out now, with the extra stamp duty and the changes in the summer Budget, represents a fair and balanced package for homeowners—those buying a buy-to-let property, but above all those buying their first home.

Tax Credits

Siobhain McDonagh Excerpts

Tuesday 20th October 2015 Commons Chamber

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

I shall speak on behalf of more than half the population who have not yet been mentioned specifically. The cuts that we are discussing today will have a gendered impact, significantly affecting women much more than men. Capital and wealth continue to be concentrated in the hands of men, who tend to earn more. By contrast, women are most adversely affected by cuts to social security as they have to rely on it more. For instance, women are far more likely to be single parents, and 42% of single parents in the UK live in relative poverty after housing costs. Of those, 90% are women. Women also work as mothers and carers for elderly relatives, and when in work they are more likely to work part-time in the most underpaid, undervalued but important sectors—catering, cleaning and social care.

The Fawcett Society has shown that 62% of workers paid below the living wage are women. The considerable gender pay gap of 19% stubbornly continues. Tax credits are therefore a lifeline for women in low paid work and the women’s budget group has demonstrated that these cuts will undermine advances in gender equality. Although the majority of people gaining from tax credit cuts will be men, who will benefit by £1.5 billion a year by 2020, most of those losing out from tax credits will be women, who will lose £5.8 billion a year by 2020.

The advances made in helping those on low pay are about to be rolled back by a party that claims to represent the interests of working people, but in practice does no such thing. The cuts are not inevitable. They are made off the back of tax cuts for multinational businesses and others, which overwhelmingly benefit the most affluent. May I suggest, from the party of Siobhain McDonagh, that if the Government are looking for a compensating saving for ameliorating the situation of the poorest families, they should look at the mortgage tax relief given to buy-to-let landlords. In the Budget the Chancellor cut it back to the basic tax rate. If the Government want £2 billion more, they should cut it a bit more, help the housing market in London and make sure that poor families and poor women do not lose out.